8-KOther Events

DIGITAL REALTY TRUST, INC. 8-K Report, Corporate Update (Jan 21, 2010)

Filed January 21, 2010For Securities:DLRDLR-PJDLR-PKDLR-PL

Summary

This 8-K filing by Digital Realty Trust, Inc. (DLR), dated January 21, 2010, details significant recent corporate activities, primarily focusing on strategic acquisitions and financing arrangements. The company reports the acquisition of a two-property data center portfolio in Ashburn and Sterling, Virginia, totaling approximately 332,000 square feet, for $63.3 million, funded by its revolving credit facility. This expansion aligns with DLR's growth strategy in the data center real estate sector. Furthermore, the filing outlines two key financing developments. DLR has established equity distribution agreements allowing for the sale of up to $400 million in common stock, with over $54 million already raised as of January 19, 2010. Additionally, its operating partnership closed on $100 million in senior unsecured notes with Prudential Investment Management, with an additional $17 million set to close in February 2010. The proceeds from these financings are earmarked for acquisitions, debt repayment, and working capital, indicating a proactive approach to capital management and expansion.

Key Highlights

  • 1Acquisition of a 332,000 sq ft data center portfolio in Ashburn/Sterling, Virginia, for $63.3 million.
  • 2The acquired Virginia property includes 140,000 sq ft of development potential.
  • 3Acquisition of Virginia portfolio was financed through the company's revolving credit facility.
  • 4Equity distribution agreements are in place to sell up to $400 million of common stock, with $54.3 million already issued.
  • 5Operating partnership closed on $100 million in senior unsecured term notes with Prudential Investment Management.
  • 6An additional $17 million in senior unsecured notes with Prudential is scheduled to close on February 3, 2010.
  • 7Proceeds from new financings will support acquisitions, credit facility repayment, and working capital.

Frequently Asked Questions

Digital Realty Trust, Inc. acquired a two-property data center portfolio located at 21561 and 21571 Beaumeade Circle in Ashburn, Virginia, and 45901 and 45905 Nokes Boulevard in Sterling, Virginia. This portfolio totals approximately 332,000 square feet and includes vacant land for potential development. The purchase price was approximately $63.3 million.

The acquisition of the Beaumeade/Nokes Property in Virginia was financed using borrowings under the company's revolving credit facility.

The company has entered into equity distribution agreements that allow for the sale of up to $400 million of its common stock, with over $54 million already sold as of January 19, 2010. Additionally, its operating partnership closed on $100 million in senior unsecured term notes with Prudential Investment Management and has agreed to sell another $17 million in notes, expected to close in early February 2010.

The proceeds from the series D, E, and F notes are intended to fund acquisitions, temporarily repay borrowings under the revolving credit facility, and for general working capital purposes.

The filing includes a 'Forward-Looking Statements' section detailing various risks and uncertainties that could affect actual outcomes. Specific to these events, it mentions the potential for termination of the New England Portfolio acquisition if closing conditions are not met by January 22, 2010, and potential liabilities for the operating partnership if it fails to close the Series F notes sale by February 3, 2010.