Business Context and Reporting Period
Company: Digital Realty Trust, Inc. and Digital Realty Trust, L.P.
Filing Type: Form 8-K (Current Report)
Date of Report: June 29, 2011
Event: Entry into equity distribution agreements to facilitate "at the market" offerings of common stock.
Key Financial Metrics
This filing does not report specific revenue, profit, cash flow, margin, or debt figures. The primary financial metric disclosed is the authorization to sell up to $400,000,000 in aggregate offering price of common stock.
Material Changes
The material change reported is the execution of equity distribution agreements with five financial institutions (Merrill Lynch, Citigroup, Credit Suisse, Deutsche Bank, and Morgan Stanley). This establishes a mechanism for the company to sell shares directly on the New York Stock Exchange or through market makers at its discretion.
Guidance, Outlook, and Use of Proceeds
Use of Proceeds: The company intends to contribute net proceeds to its operating partnership for the following purposes:
- Temporary repayment of borrowings under the revolving credit facility.
- Acquisition of additional properties.
- Funding development and redevelopment opportunities.
- General working capital.
- Potential repurchase, redemption, or retirement of outstanding debt or preferred equity securities.
Investor Verification Checklist
- Verify the current market price of Digital Realty Trust common stock to assess the potential dilution impact of a $400 million offering.
- Review the company's most recent 10-Q or 10-K to determine the current balance of the revolving credit facility and total debt load.
- Confirm the status of the shelf registration statement (File Nos. 333-158958 and 333-158958-01) referenced in the filing.
- Monitor future filings for actual sales volumes and pricing under the new distribution agreements.