Portfolio Management 101 • 13 Comments
Portfolio Management 101 • 26 Comments
Tue, Jul. 5, 4:54 PM
- Digital Realty (DLR +2.1%) has completed an $874M acquisition of eight European data centers from Equinix (EQIX -0.2%).
- That deal is part of a divestment that Equinix undertook as a condition requested by the European Commission, tied to Equinix's purchase of TelecityGroup.
- Equinix also entered a deal with Digital Realty to pay €189.75M for Digital Realty's opearting business in St. Denis, Paris, including real estate and data center there.
- Digital Realty's purchase comes at a multiple of about 13 times the portfolio's expected 2016 EBITDA. It includes five properties in London, two in Amsterdam and one in Frankfurt, and provides about 6.9 megawatts of fully installed power and 62,700 net sellable square feet.
Mon, Apr. 4, 1:31 PM
- Shares in InterXion (INXN -1.2%) took a midday dip amid reports that talks with Digital Realty Trust (DLR -0.7%), said to be considering a buyout, have stalled out over price.
- Management is less eager to sell since Baker Capital distributed its shares, a source told CTFN. When Baker controlled InterXion, it had come to a sale agreement with Telecity Group, though that deal didn't come to fruition after Equinix swooped in to buy Telecity and create a European data-center giant.
- So consolidation pressures are still out there. InterXion is going to find a buyer "at some point," one source says, but managers are focused on building solid business for now.
- Now read InterXion Is Making Its Move - How Much Farther Can It Go? »
Thu, Jan. 28, 3:12 PM
- InterXion (NYSE:INXN) has jumped 3.4% in the last few minutes on chatter from Dealreporter about Digital Realty Trust (DLR +3.2%) considering an offer.
- The European data-center player was set to be acquired for $2.2B by Telecity (OTCPK:TLEIY) last spring, before Equinix's own deal for Telecity blew up that deal.
- In November, InterXion expanded its data-center phases in four northern European cities.
- Previously: InterXion expanding data centers in four northern Europe cities (Nov. 03 2015)
- Previously: In merger's wake, InterXion confirms end to its Telecity agreement (May. 29 2015)
- Previously: Telecity's InterXion buy in doubt amid Equinix's $3.5B deal talk (May. 07 2015)
Nov. 23, 2015, 8:34 PM
- Data center operators probably aren't in a buying mood for facilities that might be for sale -- particularly CenturyLink's, Macquarie suggests in a new report -- but private-equity firms could come in with bids.
- CenturyLink (NYSE:CTL), the nation's third-largest local phone company, plans to sell 59 centers worldwide, and while Macquarie had thought Digital Realty Trust (NYSE:DLR) would get involved, analyst Kevin Smithen has changed his view after attending an industry trade show.
- He now doubts that a buyer will come from among Digital Realty, DuPont Fabros (NYSE:DFT), Equinix (NASDAQ:EQIX), CyrusOne (NASDAQ:CONE), CoreSite or QTS Realty, with a limited "pool of logical and capable buyers" for assets from CenturyLink, or from Verizon (NYSE:VZ) or AT&T (NYSE:T). But near term, "private equity seems like the most likely acquirer of assets this size."
- While CenturyLink assets are for sale, Verizon CFO Fran Shammo tried to shut down "speculative" reports that the company would pursue $10B in asset sales.
Oct. 19, 2015, 10:57 AM
- With Digital Realty Trust's (DLR +0.3%) $1.9B acquisition of Telx Holdings in the books, Barclays has reinstated coverage of the stock at Overweight.
- Analyst Ross Smotrich has set a $75 price target; shares closed Friday at $71.17, implying 5%-plus upside.
- The purchase should let Digital Realty expand its retail presence, as well as get into a high-margin business in interconnection, he says. Getting beyond its standard wholesale offering, pro forma revenue will go to 14% co-location from 7%, and to 9% interconnection from zero.
- He also pointed to lease-up potential as several of the assets Digital Realty acquired were "under-utilized."
- Previously: Digital Realty Trust closes on private peer Telx (Oct. 09 2015)
- Previously: Digital Realty grows revenues, misses on EBITDA (Jul. 30 2015)
Oct. 9, 2015, 4:53 PM
- Digital Realty Trust (NYSE:DLR) says in a filing that it's completed its acquisition of Telx Holdings for a final price of about $1.886B.
- The cash price was funded by its public offering of 10M shares of preferred stock in August, a private placement of $950M in debt and a forward sale deal of 10.5M shares of stock, completed yesterday for about $674.1M.
- Previously: Digital Realty prices $950M debt offering (Sep. 24 2015)
- Previously: Digital Realty closes preferred stock offering (Aug. 24 2015)
- Previously: Digital Realty scoops up Telx for $1.886B (Jul. 14 2015)
Jul. 15, 2015, 9:12 AM
- Digital Realty Trust (NYSE:DLR) is trading down 0.4% premarket as it's priced a 10.5M-share secondary offering at $68.00, part of the funding for a $1.9B acquisition of private peer Telx.
- Shares closed yesterday at $68.95. The offering is expected to close on Monday.
- Underwriters have an option on another 1.575M shares. The company's entered into forward sale agreements with underwriters Bank of America, Morgan Staney and Citigroup to do the deal.
- Previously: Digital Realty up 1.1% in wake of Telx deal (Jul. 14 2015)
Jul. 14, 2015, 3:24 PM
- After coming out of the gate down this morning, Digital Realty Trust (NYSE:DLR) is up 1.1% with the market following confirmation of its $1.89B deal for privately held Telx.
- DLR expects the purchase to be accretive to 2016 earnings. The deal should close later this year, roughly doubling Digital Realty's footprint in co-location services.
- The deal had been leaked yesterday via an inadvertent release by Fitch of its ratings update which considered the deal had been announced.
- Evercore's Jonathan Schildkraut argues a "strong strategic rationale" for the merger, which he values at 17.1x 2014 EBITDA and 16.3x EBITDA for the past 12 months.
- Financing for the deal comes via a $1.85B unsecured bridge loan and the sale of 10.5M shares (for roughly $700M).
Jul. 14, 2015, 7:57 AM
- "The combination is expected to double Digital Realty's (NYSE:DLR) footprint in the rapidly-growing colocation business, as well as provide Digital Realty customers access to a leading interconnection platform," says the company.
- As of March 31, Telx managed 1.3M square feet of data center space out of 20 facilities, of which two are Telx-owned, 11 are leased from DLR, one is partially sub-leased from DLR and an unrelated third party, and six are leased from third parties.
- DLR launches a 10.5M share secondary to help finance the deal.
- Previously: Fitch retracts release that seems to leak Digital Realty-Telx deal (July 13)
- Previously: Digital Realty pursuing $2B deal to buy Telx Group (June 10)
Jun. 10, 2015, 1:28 PM
- Digital Realty Trust (NYSE:DLR) is pursuing a $2B bid to acquire peer Telx Group, Reuters reports.
- A deal for the data-center company would be one of many recent acquisitions in the sector, but the biggest since Equinix announced an agreement to buy Telecity Group for $3.6B.
- Telx owns 20 data centers, including three in New York City, and is owned by ABRY Partners and Berkshire Partners. A deal would help to diversify Digital Realty's business, which is primarily focused on wholesale colocation (renting space to data-center operators) whereas Telx can add retail colocation (data-center firms renting cabinets, racks and cages to data customers).
- Meanwhile, Digital Realty received an upgrade from Macquarie to Outperform, with a raised price target of $63. Shares are up 1.9% today to $65.08.
Sep. 3, 2013, 4:39 PM
- Digital Realty (DLR) is acquiring a 15K sq. meter site in Osaka, Japan for $10.5M, and plans to build its first Japanese data center on it. The facility is expected to open in Q4 2014, and will be able to handle 4MW worth of IT hardware.
- Japan, which has one of the world's most advanced broadband infrastructures, is proving a popular spot for data center building. Equinix (EQIX) already owns multiple data centers in Tokyo and Osaka.
Sep. 18, 2012, 5:37 PM
Digital Realty (DLR) has bought a 286K square foot data center and office complex outside Denver, CO. No purchase price is given for the property, which contains 170K square feet of data center space and is 94% leased. The purchase comes as rival Equinix (EQIX) exits smaller U.S. data center markets. (PR)| Sep. 18, 2012, 5:37 PM
Jun. 26, 2012, 8:18 AM
Digital Realty Trust (DLR -2.1%) agrees to acquire the Spectrum Portfolio, which comprises three data centers in the greater London area, for $1.1B. DLR expects the purchase to add to its 2012 core funds from operations, and the company plans to provide updated financial targets in its Q2 report. (PR)| Jun. 26, 2012, 8:18 AM
Jun. 19, 2012, 7:16 AM
Digital Realty Trust (DLR) acquires 62.2K fully leased rentable square feet in Austin for $12.5M. "The property is located near our 7500 Metro Center Drive facility, expanding our presence in the Austin market," says CAO Scott Peterson. (PR)| Jun. 19, 2012, 7:16 AM