Why Digital Realty Shares Are Seeing Blue Skies Today
Portfolio Pulse from Lekha Gupta
Digital Realty Trust Inc (DLR) reported better-than-expected Q2 2023 revenue of $1.37 billion, a 20% Y/Y growth. However, the company lowered its guidance for core FFO per share. DLR also announced a joint venture deal with TPG Inc's TPG Real Estate to sell its 80% stake in three data center buildings for about $1.3 billion. Following the results, BNP Paribas upgraded DLR's stock to Outperform from Neutral.
July 28, 2023 | 5:11 pm
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POSITIVE IMPACT
Digital Realty Trust reported better-than-expected Q2 revenue and announced a joint venture deal with TPG Real Estate. However, it lowered its core FFO per share guidance. BNP Paribas upgraded the stock to Outperform.
The better-than-expected Q2 revenue and the joint venture deal with TPG Real Estate are positive news for DLR. However, the lowered guidance for core FFO per share might concern some investors. The upgrade by BNP Paribas could boost investor confidence and potentially drive the stock price up in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
TPG Inc's TPG Real Estate formed a joint venture deal with Digital Realty Trust to buy its 80% stake in three data center buildings for about $1.3 billion.
The joint venture deal with Digital Realty Trust is a significant move for TPG Real Estate, as it involves a substantial investment in data center buildings. This could potentially boost TPG's portfolio and revenue in the long term, which might have a positive impact on its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 50