Digital Realty Trust

Digital Realty has registered the resale of certain common shares with the SEC via a prospectus supplement that were issued as consideration in the acquisition of Columbia Capital. The filing includes a legal opinion on specific Maryland law issues and emphasizes that the registration does not constitute an offer to sell. Analyst reactions: HSBC upgrades the stock to Buy with a $240 price target, Cantor Fitzgerald raises its target to $221; the stock is described as slightly overvalued. » More on de.investing.com

Digital Realty Trust reported Core FFO of $2.13 per share and revenue of $1.92 billion in the second quarter, both well above analysts' expectations. Management raised full-year Core FFO guidance to $8.15–$8.20, citing record new leasing of $307 million, a backlog of $1.9 billion and rents 25.4% higher on renewals. Several analysts issued positive comments and rating upgrades, and the stock gained about 12% to $201.26, trading near its 52-week high. » More on de.investing.com

Digital Realty shares fell sharply after the REIT completed the acquisition of Blackstone’s 64% stake in three hyperscale data centers in Northern Virginia for $3.5 billion. The deal was financed with $1.2 billion in cash and an equity issuance worth $2.3 billion, sparking dilution concerns. In addition, Blackstone placed about 12.3 million DLR shares at $185 each, below the prior day’s close, increasing selling pressure and prompting a “sell the news” reaction; the stock dropped as low as $180.66. Several analysts maintained or raised their price targets despite the volatility, but the broader market offered little support. » More on de.investing.com