Digital Realty raised approximately $1.1 billion of gross proceeds from the sale of approximately 11 million shares issued under the company’s at-the-market program, including 3.5 million shares to be issued pursuant to forward sales agreements.
In addition, Digital Realty sold a data center in Texas for approximately $150 million. The data center 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.
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.
“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.”
