Digital Realty prices $2.28B Blackstone stock offering
Digital Realty has priced a $2.28 billion secondary offering of 12,310,249 shares by Blackstone affiliates at $185.00 per share, expected to close on July 1, 2026. The offering facilitates the acquisition of a 64% equity interest in data centers for $3.5 billion, comprising $1.2 billion in cash and $2.3 billion in stock. The assets, totaling 288 MW, are fully leased to investment grade hyperscale customers and are expected to stabilize between 2027 and 2028.
*this image is generated using AI for illustrative purposes only.
Digital Realty has priced an underwritten registered public offering of 12,310,249 shares of its common stock by affiliates of Blackstone Inc. at a public offering price of $185.00 per share. The offering, totaling approximately $2.28 billion, is expected to close on July 1, 2026, subject to customary closing conditions and the closing of the company's acquisition of Blackstone's interests in the Digital Carver Dulles 9 and Digital Carver Brickyard joint ventures. Digital Realty is not offering any shares in this offering and will not receive any proceeds from the sale.
Acquisition Overview
Digital Realty agreed to purchase a blended 64% equity interest in the data centers for a total consideration of $3.5 billion. The transaction, valued at a gross asset value of $7.8 billion, includes $1.2 billion in cash and $2.3 billion in shares of Digital Realty common stock. The portfolio consists of two data centers in Manassas and one on the Digital Dulles campus in Sterling, totaling 288 megawatts of IT capacity.
Asset and Lease Details
The assets are 100% leased to three investment grade hyperscale customers under 15-year terms with an average AA- credit rating and 3.6% annual rent escalators. Two data centers are expected to stabilize in the first half of 2027, with the third stabilizing in the first half of 2028.
| Location | Interest Purchased | IT Capacity (MW) | Stabilization Timeline |
|---|---|---|---|
| Manassas, Virginia | 80% | 96 | First half of 2027 |
| Manassas, Virginia | 80% | 96 | First half of 2027 |
| Sterling, Virginia | 50% | 96 | First half of 2028 |
Strategic and Financial Impact
Greg Wright, Chief Investment Officer of Digital Realty, stated the transaction increases ownership in high-quality hyperscale assets. Matt Mercier, Chief Financial Officer, noted the deal is expected to be accretive to Core FFO per share in 2027 and 2028. Morgan Stanley acted as the sole underwriter for the public offering by Blackstone.
How will Digital Realty fund the $1.2 billion cash portion of the acquisition?
What is the projected Core FFO per share accretion percentage for 2027 and 2028?
Does Digital Realty plan to acquire the remaining minority interests in the Manassas and Sterling data centers?
15
Access 50+ Readymade Screeners 
Use 200+ Custom Filters 
Get Full Market Insights 
