Digital Realty to sell $1bn in shares

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Digital Realty has entered into an agreement with over fifteen different underwriters to sell $1 billion in stock over an extended period of time.

In filing dated 4 January 2019, the sale of its common stock will be carried out through the named agents in the agreement. These include Merrill Lynch, Pierce, Fenner & Smith, Barclays Capital, BTIG, Credit Suisse Securities, Deutsche Bank Securities, JP Morgan Securities, Mizuho Securities, Morgan Stanley & Co, MUFG Securities Americas, PNC Capital Markets, Raymond James & Associates, RBC Capital Markets, Scotia Capital, SMBC Nikko Securities America, SunTrust Robinson Humphrey, TD Securities and Wells Fargo Securities. 

The agreement states that the company will “will pay each of the Agents acting as our sales agent a commission that will not exceed, but may be lower than, 2.0% of the gross sales price per share of shares sold through it as our agent under the sales agreement.”

The news comes as Digital Realty Trust stock has been experiencing a downtrend of -1.63% since the start of 2019.

According to RNS Daily figures indicate that Digital Realty stock has los roughly -7.81% of its value over the last 12 months. Despite the outlook, figures from its September 2018 earnings show that the company’s revenue was up 8% year-on-year. Additionally its quarterly revenues were up 26% to $768.92 million in 2018 when profits were at $609.92 million for the same quarter the year before.

In November, the company announced the appointment of Mark Smith as its new managing director of Asia-Pacific. Smith entered the position in December, reporting directly to chief financial officer, Andrew Power. He is now responsible for overseeing all the company’s operations in the Asia-Pacific region.

In addition to Smith, Digital Realty has also named Gregory Wright as its new chief investment officer. Wright will be reporting into chief executive officer William Stein and will lead all Digital Realty’s capital allocation activities.