Data Center Finance: Digital Realty Common Stock Offering

Data center and colocation services provider Digital Realty announced that a public offering of 10.5 million shares of its common stock would sell for $68.00 per share. The nearly $700 million in common stock offerings will go to purchasers according to forward sale agreements.

The company is expected by industry analysts to post second quarter earnings of $1.25 per share and have a mean consensus price target of $70.50 on the New York Stock Exchange, or between $77 and $59. The common stock offering falls into the range of stock prices for the second quarter of 2015 and may indicate long-term growth for the company. As of mid-July, Digital Realty had a 52-week range of $60.05 to $75.39.

The news of the common stock offering comes after the announcement that Digital Realty would purchase data center solutions company Telx for $1.9 billion, adding 1.3 million square feet of data center real estate to its already sizeable portfolio. Some analysts speculate that the deal, if profitable, will push Digital Realty over 5 percent dividend yield for the second quarter. The company currently owns assets around the world, including 102 North America data centers.

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