Digital Realty Trust, Inc. (NYSE:DLR), a $59.58 billion market cap specialized REIT and prominent player in the data center industry, and its finance subsidiary, Digital Dutch Finco B.V., have initiated an offering of Euro-denominated Guaranteed Notes today, according to a recent SEC filing. According to InvestingPro analysis, the company is currently trading above its Fair Value, with strong momentum shown by its 41.58% return over the past year. The notes will be senior unsecured obligations of Digital Dutch Finco B.V. and will be guaranteed by Digital Realty Trust, Inc. and Digital Realty Trust, L.P.
The offering is subject to market conditions and other factors, with the notes being available exclusively outside the United States, in compliance with Regulation S under the Securities Act of 1933. The Euro Notes have not been registered in the U.S. and are not available for sale to U.S. persons without registration or an exemption from registration requirements.
Digital Realty intends to use the net proceeds from the sale of the Euro Notes for various corporate purposes. These include repaying borrowings under its global revolving credit facilities, acquiring additional properties, funding development opportunities, and investing in short-term securities that align with the company’s goal to qualify as a REIT for U.S. federal income tax purposes. The funds may also be used for general corporate needs such as debt repayment or the redemption of outstanding equity or debt securities.
The company has provided forward-looking statements with caution, noting that actual future results may differ materially due to a variety of risks and uncertainties. InvestingPro data shows the company maintains strong financial health with a current ratio of 1.6 and operates with a moderate debt level, with total debt to capital at 0.23.
For deeper insights into Digital Realty’s financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers. These include the timing and completion of the Euro Notes offering, market conditions, regulatory changes, and competitive factors in the industries in which Digital Realty operates.
Digital Realty Trust, Inc., headquartered in Dallas, Texas, is a real estate investment trust that focuses on data center and colocation solutions. The company has maintained dividend payments for 21 consecutive years, currently offering a 2.72% yield. InvestingPro subscribers have access to 8 additional key insights about Digital Realty’s performance and valuation metrics.
The company’s filing indicates that there is no guarantee that the proposed transactions will be completed as described or at all. The information in the article is based on the most recent SEC filing by Digital Realty.
In other recent news, Digital Realty Trust has been the subject of several significant financial updates. The UBS analyst team upgraded the company’s stock from Neutral to Buy, based on the expectation of continued strong demand for data center services and potential for rent improvements. UBS analysts project that Digital Realty will experience funds from operations (FFO) per share growth of 5% in 2025, accelerating to 7% in 2026 and then to 10% by 2027.
The company also increased its authorized shares of common stock from 392 million to 502 million and entered into an At-The-Market (ATM) Equity Offering Sales Agreement potentially worth up to $3 billion with a consortium of financial institutions. Furthermore, it issued $1.15 billion in 1.875% Exchangeable Senior Notes due in 2029.
Analysts from various firms including Citi, Deutsche Bank (ETR:DBKGn), Mizuho (NYSE:MFG), and RBC Capital Markets have responded to these developments with varied ratings and price targets. Digital Realty’s third quarter of 2024 saw new leasing volume reaching $521 million and a backlog of leases set to commence increased to nearly $860 million.
The company’s Funds From Operations (FFO) of $1.67 slightly surpassed the consensus estimate of $1.66. These are recent developments that provide insight into the company’s financial performance and strategic moves.
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