Digital Realty Trust Inc (DLR.N): DLR Announces Purchase of Blackstone Interest in NOVA Data Centers and Secondary Offering by Blackstone

Research evidence excerpt

Digital Realty Trust Inc (DLR.N): DLR Announces Purchase of Blackstone Interest in NOVA Data Centers and Secondary Offering by Blackstone

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29 Jun 2026 22:12:55 ET │ 14 pages

Digital Realty Trust Inc (DLR.N)

DLR Announces Purchase of Blackstone Interest in NOVA Data Centers

and Secondary Offering by Blackstone

CITI'S TAKE Buy

Price (29 Jun 26 16:00) US$190.58 DLR announced its agreement to purchase Blackstone’s interest in three

Target price US$226.00 fully leased data centers in NOVA for $7.8B at an expected initial

stabilized cash cap rate of >6.5%. With an above-average annual cash Expected share price return 18.6%

escalator of 3.6%, we view this as a positive and accretive deal for DLR Expected dividend yield 2.6%

with an unlevered total annual return of >10%. The transaction is Expected total return 21.1%

opportunistic for DLR to take 100% ownership of these strategic sites Market Cap US$66,971M

(from an average of 36%) at a favorable valuation, while also providing

Blackstone with an early exit. We estimate the potential accretion in 2027

is roughly 80 bps to core FFOPS and roughly 330 bps in 2028, including

the shares used to fund the transaction from a combination of intra- Michael Rollins, CFAAC

quarter ATM and direct issuance to Blackstone. We maintain our Buy on +1-212-816-1116

DLR with room for multiple expansion from favorable demand, positive michael.rollins@citi.com

renewal spreads, and conservative FY26 guidance. Nick Joseph

+1-212-816-1909

Implications – The transaction sale value at over a 6.5% cap rate, albeit sold by nicholas.joseph@citi.com

Blackstone, is consistent with the transaction value ranges that we expect BXDC to Caitlyn Walsh

pursue. Similar to DLR, we believe the market is apt to put a tighter cap rate on high +1-212-816-6692