Data Center REIT Digital Realty Announces New Preferred

Giant data center REIT Digital Realty (NYSE:DLR) has announced a new preferred stock issue.

Being a REIT this issue will be cumulative, non qualified and redeemable starting in 2024.

The company has numerous preferred issues outstanding and while the company has not announced a definite redemption there is certainly a possibility that this will occur with the DLR-G 5.875% issue which is the only issue currently redeemable.

Their outstanding issues can be seen here.

The preliminary prospectus can be read here.

Thanks to mcg who was right on this one in the Reader Initiated Alerts page.

11 thoughts on “Data Center REIT Digital Realty Announces New Preferred”

    1. Not surprised by 5.2%. Not interested either unless it opens below under Par. I will share than I ran data centers my whole career. Moving data centers is a huge task, so their existing business so be very very sticky.

      1. SteveA–thanks. I actually like the company from a business perspective–BUT any perpetual at this coupon holds little interest for me at this time. Of course if rates continue downward I reserve the right to change my tune.

    1. I’m curious where you got the 5.2 % so early as it wasn’t on sec.gov or DLR website. Thanks for sharing.

  1. Very interested to see this coupon. If they are going to call DLR-G, you would think about 5.4%-5.5% as the maximum coupon.

    But based upon their last issue this is a mixed IG issue (IG by Moody’s, Just below by SP). That would suggest to me closer to 5.5% – 5.7% which would not really save much at all by calling DLR-G.

    Are they going to try a real low coupon of 5.2% – 5.4% ?

    1. SteveA–only God knows for sure. Minimally it should keep the issue around $25 with the call fear making it a possible dividend capture play in the future.

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