Why Digital Realty Stock Rallied 16% in November
Shares of Digital Realty (NYSE: DLR) rebounded by 16.1% in November, according to data provided by S&P Global Market Intelligence. After a tough start to the year, the real estate investment trust (REIT) rallied sharply during the month, largely thanks to the news that inflation wasn't rising as much as investors had expected.
On the one hand, November was a relatively quiet month for Digital Realty. There wasn't much in the way of news specifically about the data center REIT.
Indeed, the only company-specific news of note was that it priced a public offering of $350 million of additional 5.55% notes due in 2028. It had previously issued $550 million of notes at that rate and maturity. The additional capital will allow Digital Realty to temporarily repay borrowings under its revolving credit facility. That will give it the financial flexibility to acquire additional data centers, fund development opportunities, or invest in interest-bearing accounts. The company's ability to access debt capital at a reasonable rate in a rising interest rate environment showcases its financial strength.
Source Fool.com
