On June 30, Digital Realty Trust fell 5.38% in pre-market trading, trading at $180.99/share, with turnover of $217,800. The stock came under significant selling pressure following the announcement of a major acquisition and concurrent large-scale equity offering.

The company disclosed it will acquire majority stakes in three Northern Virginia hyperscale data centers from Blackstone funds for a total consideration of $3.5 billion, comprising $1.2 billion in cash and $2.3 billion in company stock. The assets are valued at $7.8 billion and include 80% interests in two 96-megawatt facilities in Manassas and a 50% interest in a 96-megawatt facility in Sterling, totaling 288 MW of IT capacity fully leased to three investment-grade hyperscale tenants with a composite AA- credit rating.

Compounding the downward pressure, Blackstone affiliates simultaneously commenced an underwritten secondary offering of approximately $2.35 billion in Digital Realty common shares. The combination of substantial new stock supply and concerns over increased financial leverage from the acquisition drove pre-market selling activity.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)