Over $1 billion of capital raised through asset sales and ATM issuance over last 30 days
AUSTIN, Texas, June 5, 2023 /PRNewswire/ — Digital Realty (NYSE: DLR), the largest global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, announced the sale of a non-core data center in Texas. Digital Realty realized approximately $150 million of net proceeds from the sale of its 100% interest in the data center, which was originally acquired in 2012 and leased as a powered shell facility. The property was sold at a 4.4% cap rate, based on projected 2023 net operating income and generated a capital gain of approximately $88 million.
“Consistent with our goals for this year, this transaction enables us to recycle capital from a non-core asset at an attractive valuation,” said Digital Realty Chief Investment Officer Greg Wright. “We are consistently enhancing our portfolio by redeploying proceeds into strategic investments with premium growth prospects. Institutional demand for data centers remains robust and we look forward to continued execution on our capital plan.”
Separately, Digital Realty announced that it has raised approximately $1.1 billion of gross proceeds from the sale of approximately 11 million shares issued under the company’s at-the-market (“ATM”) program, including 3.5 million shares to be issued pursuant to forward sales agreements.
Digital Realty expects to use the combined proceeds from the asset sale and ATM issuance to pay down debt and ultimately to fund ongoing and future investment activity.
About Digital Realty
Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation and interconnection solutions. PlatformDIGITAL®, the company’s global data center platform, provides customers with a secure data “meeting place” and a proven Pervasive Datacenter Architecture (PDx™) solution methodology for powering innovation and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected communities that matter to them with a global data center footprint of 300+ facilities in 50+ metros across 27 countries on six continents. To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and Twitter.
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Safe Harbor Statement
This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to the disposition of a non-core asset and related cap rate, sales of equity under the company’s ATM program, expected benefits, use of proceeds and the company’s strategy. For a list and description of such risks and uncertainties, see the reports and other filings by the company with the U.S. Securities and Exchange Commission. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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SOURCE Digital Realty