8/15/2023 0 Comments Capital one sign in p![]() ![]() For the nine months ending Dec 31, 2023, DLR expects to incur around $1.7 billion to $1.9 billion of capital expenditures for its development programs.Īlso, DLR’s solid balance-sheet position and ample financial flexibility poise it well to capitalize on long-term growth opportunities. Amid this, Digital Realty’s capital-recycling efforts, strategic acquisitions and an encouraging development pipeline position it well for growth.Īs of Mar 31, 2023, it had 9.2 million square feet of space under active development and 3.7 million square feet of space held for future development. Moreover, growth in the AI, autonomous vehicles and virtual/augmented reality markets is anticipated to increase over the next five to six years. Growth in cloud computing, the Internet of Things and Big Data, and elevated demand for third-party IT infrastructure have aided this rise. We are consistently enhancing our portfolio by redeploying proceeds into strategic investments with premium growth prospects.”ĭigital Realty has been capitalizing on the robust demand for data center infrastructure amid enterprises’ growing reliance on technology and acceleration in digital transformation strategies. ![]() Per Greg Wright, chief investment officer, DLR, “Consistent with our goals for this year, this transaction enables us to recycle capital from a non-core asset at an attractive valuation. The company recognized a capital gain of roughly $88 million from the transaction, making the move a strategic fit. The data center was sold for around $150 million, while the shares sold under the ATM program resulted in gross proceeds of nearly $1.1 billion.īased on DLR’s projected net operating income for 2023, the disposition of the data center, originally acquired in 2012 and leased as a powered shell facility, was carried out at a cap rate of 4.4%. This included 3.5 million shares to be issued pursuant to forward sales agreements. In an effort to raise capital to fund its ongoing and future investment activity and repay debt, Digital Realty ( DLR Quick Quote DLR - Free Report) divested 100% of its interest in a non-core data center in Texas and sold around 11 million shares issued under its at-the-market (“ATM”) program.
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