Digital Realty prices €850 million notes offering due 2034

DALLAS - Digital Realty (NYSE:DLR), a $60.37 billion market cap data center REIT with a 22-year track record of consistent dividend payments, priced an offering of €850 million in guaranteed notes due 2034 with a 3.875% interest rate, according to a press release statement issued Tuesday.

The notes will be issued at 99.137% of principal amount by Digital Dutch Finco B.V., an indirect wholly owned finance subsidiary of Digital Realty’s operating partnership. The securities will be senior unsecured obligations fully guaranteed by Digital Realty and its operating partnership.

Interest on the notes will be paid annually starting from June 25, 2025, with maturity set for July 15, 2034. The offering is expected to close on June 25, 2025, subject to customary closing conditions.

Digital Realty plans to use the proceeds to temporarily repay borrowings under its global revolving credit facilities, acquire properties or businesses, fund development opportunities, and for general corporate purposes, including potential debt repayment or securities redemption. The company maintains a healthy financial position with a current ratio of 1.66 and operates with a moderate debt level, according to InvestingPro data.

The Euro Notes are being sold exclusively outside the United States under Regulation S of the U.S. Securities Act and have not been registered under the Securities Act. The securities will not be available to retail investors in the European Economic Area or the United Kingdom.

Digital Realty is a provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, generating $5.5 billion in revenue over the last twelve months. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading above its intrinsic value. Subscribers can access 8 additional ProTips and comprehensive valuation metrics in the Pro Research Report.

In other recent news, Digital Realty Trust announced the results of its Annual Meeting of Stockholders. Key proposals, including the election of directors and the ratification of KPMG LLP as the independent auditor, received strong support from stockholders. In terms of financial performance, JMP Securities maintained a Market Outperform rating for Digital Realty Trust, revising its revenue projections downward due to foreign exchange headwinds, but noting an increase in the adjusted funds from operations (AFFO) per share estimate to $6.66. Mizuho also raised its price target for the company to $191, citing strong bookings and potential upside from the fund as reasons for the increase. Stifel reaffirmed its Buy rating, emphasizing Digital Realty’s strong leasing performance and growth prospects, driven by a robust pipeline of deals. Additionally, Digital Realty declared a second-quarter dividend of $1.22 per share for common stockholders, payable at the end of June. The company also announced dividends for several series of preferred stock, set to be paid on the same date. These recent developments reflect the ongoing confidence in Digital Realty Trust’s strategic direction and financial stability.

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