On June 30, Digital Realty Trust declined 5.27% in regular trading, trading at $180.49/share, with turnover of $924 million.

On the news front, the company announced a $3.5 billion total consideration to acquire majority stakes in three Northern Virginia hyperscale data centers from Blackstone-affiliated funds. The transaction will be funded with $1.2 billion in cash and $2.3 billion in Digital Realty common stock, with the underlying assets valued at $7.8 billion. The deal includes 80% interests in two 96-megawatt data centers in Manassas, Virginia, and a 50% interest in a 96-megawatt facility in Sterling, Virginia.

Compounding selling pressure, Blackstone affiliates simultaneously launched a $2.35 billion registered secondary offering of Digital Realty common shares. The combination of substantial new stock supply and concerns over increased financial leverage from the acquisition drove broad-based selling. Barclays raised its price target to $197 from $189 while maintaining an Equalweight rating, and the analyst consensus mean target stands at $220.03.

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