Digital Realty Announces Non-Essential Divestiture

Recycles capital from a mature US asset to reinvest in a growing global platform

AUSTIN, TX, August 8, 2022 /PRNewswire/ — Digital Realty (NYSE: DLR), the world’s largest provider of carrier- and cloud-neutral data center, colocation and interconnect solutions, today announced that it has entered into a definitive agreement to sale of a use of the data center property in a transaction valuing the asset at approximately $205 million. The property is expected to generate net operating income in 2022 of approximately $10.7 millionrepresenting a capitalization rate of 5.2%.

Digital Realty originally acquired the 370,000 square foot facility in 2004, ahead of its IPO. The majority of rental income comes from a Tier III Powered Base Building data center, while a portion of the property is leased to longer-term commercial and retail tenants.

“This divestiture opportunistically recycles an operationally mature asset to fund strategic investments aimed at improving our long-term growth profile,” said Digital Realty’s Chief Investment Officer. Greg Wright. “Since 2018, Digital Realty has sold approximately $4 billion of assets and revenue redeployed in highly connected facilities around the world, providing our customers with a global and complete data center solution. »

Digital Realty expects proceeds from the transaction will initially be used to repay debt and will ultimately be used to fund future investing activities.

The transaction is expected to close in the third quarter of 2022 and is subject to customary closing conditions. Eastdil Secured served as an advisor to Digital Realty on the transaction.

About digital real estate
Digital Realty brings business and data together by offering a full range of data center, colocation and interconnect solutions. PlatformDIGITAL®, the company’s global data center platform, provides customers with a secure “meeting place” for data and a proven Pervasive Datacenter Architecture (PDx™) solution methodology to drive innovation and effectively manage data gravity challenges. Digital Realty gives its customers access to the connected communities that matter to them with a global data center footprint of over 300 facilities in more than 50 metros across 27 countries on six continents. To learn more about Digital Realty, visit digitalrealty.com or follow us on LinkedIn and Twitter.

For more information

Investor Relations
Jordan Sader / jim huseby
Digital real estate
+1 737 281 0101
[email protected]

Media Contacts
Helen Bleasdale
Digital real estate
+1 737 267 6822
[email protected]

Safe Harbor Statement
This press release contains forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual results to differ materially, including statements relating to the disposal, expected profits, product usage and strategy. For a list and description of such risks and uncertainties, see the company’s reports and other filings with the United States Securities and Exchange Commission. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Digital Realty

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