AUSTIN, Texas - Digital Realty (NYSE: NYSE:DLR), a leading provider of data center, colocation, and interconnection solutions, has launched a registered public offering of 10.5 million shares of common stock. The company also plans to offer underwriters a 30-day option to buy an additional 1.575 million shares.
The offering is managed by BofA Securities, Citigroup Global Markets Inc., and J.P. Morgan Securities LLC as joint book-running managers. Digital Realty aims to use the net proceeds to repay borrowings under its operating partnership's global revolving credit facilities and potentially for other corporate activities, including acquiring properties, funding development, and repaying or repurchasing debt.
The sale is made under an effective shelf registration statement filed with the Securities and Exchange Commission (SEC). Interested parties can obtain a copy of the prospectus from the book-running managers.
This offering comes as part of Digital Realty's strategy to manage capital and support its global data center platform, PlatformDIGITAL®, which offers secure data meeting places and a solution methodology to handle Data Gravity challenges. The company operates over 300 data centers across more than 25 countries.
The press release emphasizes that this announcement does not constitute an offer to sell securities and that the offering will be subject to market and other conditions.
Digital Realty has made it clear that this press release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from what is expected.
The information reported is based on a press release statement from Digital Realty.
InvestingPro Insights
As Digital Realty (NYSE: DLR) embarks on its latest public offering, investors are closely monitoring the company's financial metrics and market position. According to real-time data from InvestingPro, Digital Realty's market capitalization stands at $46.15 billion, reflecting the company's significant presence in the data center and colocation industry. Despite a high earnings multiple, with a P/E ratio of 39.08 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at 172.55, Digital Realty is trading at a low PEG ratio of 0.17, indicating potential for earnings growth relative to its P/E ratio.
InvestingPro Tips highlight Digital Realty as a prominent player in the Specialized REITs industry and underscore its solid track record of maintaining dividend payments for 21 consecutive years. The company's commitment to shareholder returns is further evidenced by a dividend yield of 3.39% as of the latest data.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available at InvestingPro that could provide further insights into Digital Realty's performance and valuation. As of now, there are 10 more tips listed for Digital Realty, offering a broader perspective on the company's financial health and market prospects.
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