BUZZ-Digital Realty drops after Blackstone's $2.3 bln secondary offering

Morgan Stanley
Blackstone Inc.
Digital Realty Trust, Inc.

Morgan Stanley

MS

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Blackstone Inc.

BX

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Digital Realty Trust, Inc.

DLR

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** Data center REIT Digital Realty's DLR.N shares down 4.5% to $182 in premarket trading on Tues after secondary offering priced

** DLR early Tues announced ~12.3 mln shares by affiliates of Blackstone BX.N at $185 for about $2.28 bln

** Offering price represents 2.9% discount to stock's last close

** Shares sold in offering to be issued to BX upon closing of DLR's acquisition of the asset manager's interests in Virginia data centers

** Morgan Stanley sole underwriter for offering

** Through Mon, DLR stock up 23% YTD and outperforming 12% advance in S&P 500 Real Estate sector .SPLRCR

** 24 of 33 analysts rate the stock "strong buy" or "buy", 9 "hold"; median PT $220, per LSEG

** Austin, Texas-based DLR has $67 bln market cap, based on ~351.4 mln shares outstanding