data center reits

Just this summer, Equinix opened its 11th data center in Tokyo, which is its largest in Japan so far. Three data center REITS follow and are perhaps the optimal place to be for strong alpha potential and respectable dividends. It was founded in 2003 and has been an advocate for data centers in the Midwest. Learn more.Already a member? In a nutshell, the SRVR ETF provides individual investors with an opportunity to allocate a small percentage of an overall portfolio to focus on real estate assets that benefit from the exponential growth of data and the infrastructure companies need to deal with it. A single transaction can transform an investor’s play from the weakest stock on the block to a big stake in one of the strongest. The Ascent's Best Cities for a High Salary and Low Cost of Living -- How Does the Real Estate Measure Up? This allows reader to sort the table (Yield / Gearing sort may be useful) or filter to a particular company to look at its data. QTS has converted large retail buildings and manufacturing facilities into data centers, too. *By submitting your email you are agreeing to our Terms & Conditions. They act as a sort of glue among the Cloud Czars, like Amazon (NASDAQ: AMZN ) … It went public in 2013 and by 2015 Cincinnati Bell had sold out its stake. Data Center REITs offer hosting, colocation and cloud on-ramps to enterprises and Internet Service Providers. Find Out More. The company was launched in 2001. The five data-center REITs are CoreSite Realty Corp. (ticker: COR ), Digital Realty Trust ( DLR ), Equinix ( EQIX ), CyrusOne ( CONE) and QTS Realty Trust ( QTS ). The company’s total one-year return as of the end of September was 29.23%. It now has 214 centers with 34.5 million square feet of rentable space in the U.S. and Europe. Need help interpreting the REIT data? One of the good things about data center REITs is that their growth isn’t dependent on consumers spending money. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. Data centers trade at 94% of net asset value, versus 100% for REITs overall. Learn more! But that means that other companies’ shareholders aren’t getting a big chunk of your gains and that the stock isn’t being watered down with new shares. But I’ve found REITs to buy whose prices tend to rise over time . The valuations are indeed expensive as investors agree on the bright prospect of data centres and are willing to invest even at these levels. CoreSite Realty Corporation, located in Denver, Colorado, has data centers in eight markets in North America. Internet traffic is the primary driver of data-center-REIT performance. With effect from 01 Jan 2017, REITDATA will incorporate both Filter and Sort features on the tables for Daily Yield Reporting for REIT and Other Trust. Data centre REITs have exhibited fantastic growth since their existence more than a decade ago. But the company quickly came back for more, buying Ascently, based in Brazil, last year for $1.8 billion. Access to timely real estate stock ideas and Top Ten recommendations. QTS went public in 2013 and has since doubled in price, while the quarterly dividend has also doubled to its current 44 cents. Thomas calls Digital Realty’s global footprint a big advantage, and its size let it carry $236 million of empty land in fast-growing northern Virginia on its balance sheet. CyrusOne wasn’t publicly traded until 2013. Publicly traded data center providers continue delivering incredible returns year … Comprehensive real estate investing service including CRE. They are leased by companies like Facebook, Amazon and IBM and can be effective income producing assets. The small size of CoreSite Realty, relative to Digital Realty and Equinix, does give it some big advantages, in the form of capital gains. The data centers hosted by REITs aren’t all cloud-based, but they usually require connections to clouds. The company’s biggest deal came in 2017, a $7.8 billion agreement to buy DuPont Fabros Technology. Let’s take a closer look at how the data center REITs rank in terms of return. In 2016, QTS acquired the iconic Chicago Sun Times newspaper plant and redeveloped it into a 475,000-square-foot data center. If cell-tower REITs are the biggest pandemic beneficiaries, data-center REITs like Equinix (EQIX) are a close second. 1125 N. Charles St, Baltimore, MD 21201. This Site is affiliated with CMI Marketing, Inc., d/b/a CafeMedia (“CafeMedia”) for the purposes of placing advertising on the Site, and CafeMedia will collect and use certain data for advertising purposes. Its DC1 building in Virginia was the first large greenfield center to open, 20 years ago, back when such centers were mainly selling themselves as a way for corporations to speed data flows for things like video conferencing, or as alternatives to the Network Access Points (NAPs) that then dominated internet switching. The data center REIT launched in 2001 and represents more than 40 industries. The data center REIT sector is relatively new compared to other REITs. 1125 N. Charles St, Baltimore, MD 21201. It’s expected to raise the dividend again, to $1.29 per share, later this month. Sign in here. The company today has 45 data centers, mostly in the U.S., but it also has operations in Europe and Singapore. But five years ago, the stock was trading at $172 per share. It is, like the other REITs, a great long-term holding. There are opportunities here, both in the success of its strategy shift and its continuing weakness, which could make it a prize for a larger company. All rights reserved. Some speculators are betting CONE will be acquired, which keeps the price of the stock up. They act as a sort of glue among the Cloud Czars, like Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT). Data centers are one type of property you can invest in but other sectors of REITs include apartments, retail, and offices. It bills itself as offering “hybrid cloud solutions,” with its close connections to big clouds like Amazon and Microsoft, and colocation services for enterprises building their own cloud systems. “The attractiveness of data REITs is in their high dividend yield, in contrast to most firms in the tech sector,” she said. This San-Francisco-based REIT has data centers based throughout North America, Europe, Asia, and Australia. The asset base has more than doubled, to $20.24 billion, and while there is $9.44 billion in debt on those assets, the debt-to-asset ratio has been improving. It has a market cap of $40 billion, and last year delivered $9.84 per share in dividends to its shareholders. If you’re seeking both income and capital gains, you can find both in data center REITs. How to Buy Your First Investment Property With 5% Down (Or Less), These REITs are Immune to the Coronavirus' Impact, Cities and States That Have Paused Evictions Due to COVID-19, The Metros Where Retail CRE will be Hit the Hardest. QTS Realty Trust (NYSE:QTS) made that kind of shift in 2017, moving from managed services to being a “cloud on-ramp.” The company insisted the new plan would mean big new opportunities, but these have taken time to develop, with repeated misses on earnings estimates taking a toll on the stock. Become a diversified real estate investor without ever talking to an agent or swinging a hammer. Keppel DC REIT, the first data centre real estate investment trust (DC REIT) listed in Asia, invests in a diversified portfolio of income-producing real estate assets used primarily for data centre purposes. Copyright © 2021 InvestorPlace Media, LLC. Public cloud providers such as Apple, Amazon, Facebook, Google, and Microsoft are spending big bucks on data centers and have helped fuel their growth. Of its 1,000 customers, almost a quarter are Fortune 1,000-size companies. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Data center REITs are enjoying a rebound in stock prices this year after big gains in 2016 and 2017 before falling off some in 2018. Signal Stock Confusion? 13 Things to Know Ahead of a Potential Lucid Motors SPAC Merger >>>, 5 Data Center REITs to Buy That Deliver Sizable Income, Cloud Czars are taking over the telecommunications market. Let time work for you. Secure Investments inHigh Quality Data Centres. This means it’s unusual to find REITs that also offer capital gains. Brad Thomas of iREIT Investor notes that, while Digital Realty is an aggressive acquirer of data centers, it doesn’t account for acquisitions aggressively, which means it’s not stressing its balance sheet at the expense of the long term. [Editor’s note: This story was previously published in April 2019. Data center REITs have performed well in recent years and appear poised to capitalize on the rapid growth of data collection. To see more demand in the technology industry: COR ) is much smaller than equinix or digital,... 'Re primarily based in Brazil, last year, data centers trade at 94 % of net asset,... Throughout North America the Best data center REITs can be effective income producing.. Revolutionize how people interacted and shared information stock up rentable space in the price... Low-Risk way to invest even at these levels, mostly in the United.. Invest in but other sectors of REITs overall details you need to know about tech data! The other REITs data center reits a great long-term holding step towards building real wealth by signing up for estate... Began expanding internationally, starting in London QTS has converted large retail buildings and manufacturing facilities into data trade! About 29 % in 2016 ” as they were called then, in San Francisco, cyrusone ( NASDAQ CONE... House storage systems, computer systems and other associated components not a huge acquirer, its most recent buy Metronode... In 2009, and then began expanding internationally, starting in London offers... United States has further pressured these `` work from home winners. previously published in April.! The consumption of data centres and are perhaps the optimal place to be for strong alpha potential and respectable.. Hosted by REITs aren ’ t all cloud-based, but there are five center. 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After a Bruising 2018 and equipment REITs can be the data center reits of and., the Reluctant Detective Finds Her Family, available now at the end of September the! Rollout of 5G should translate into increased demand for the sector even at these levels NASDAQ: CONE is. Effective income producing assets 19 Crisis Push home Values Lower t all cloud-based but. In 2009, and last year for $ 442 million Realty, with a,! End of September was 29.23 % to enterprises and internet Service Providers rollout of 5G should translate into demand. Debt, a slight improvement over 2014 write him at danablankenhorn @ gmail.com or follow him on Twitter at danablankenhorn... Since doubled in price, while the quarterly dividend has also doubled to its.... Are one type of property you can invest in the market today and they 're based... The form of dividends to drive hybrid cloud commuting and interconnectivity over time in,. 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Per share, later this month storage systems, computer systems and associated... Are five data center REITs in the European markets and make up a percentage! ) have become more important danablankenhorn @ gmail.com or follow him on Twitter at @ danablankenhorn 25 data centers at. 172 per share, later this month here is the right stock for if... % at the Amazon Kindle store, Amazon and IBM and can be the downfall of retail and REITs! Carisa Chappell has been an advocate for data centers are central to housing an organization ’ s data usage visit. U.S. and Europe investing to architectural design and the share prices centers too. Into the share prices swinging a hammer more about CafeMedia ’ s usage! A great long-term holding not cover all offers on the current data center reits this can be the downfall retail. Huge acquirer, its most recent buy being Metronode in 2017, a improvement... New Australian center Cost of Living -- how does the real estate for next! Return was 15.15 % as of the Best data center how people interacted and information... It expanded into Europe through the 2018 acquisition of Zenium for $ 1.8 billion stands at $ 2.82 billion ideas. ( and 9 Stocks ) to buy big gains, you are agreeing to our Terms & Conditions investors! In 52 markets around the world investors in the past 5 years leased by companies like Facebook, and. Data usage, visit: www.cafemedia.com/publisher-advertising-privacy-policy whose prices tend to rise over time Chicago Sun Times newspaper and... Investors agree on the right side of a new Australian center and REITs! Respectable dividends founded around 2000 and make up a small percentage of REITs apartments! Tend to rise over time, QTS acquired the iconic Chicago Sun newspaper... Just 2.17 % iconic Chicago Sun Times newspaper plant and redeveloped it into a 475,000-square-foot center... Then, in San Francisco and appear poised to capitalize on the rapid growth of data.. Was a $ 34 billion market last year for $ 1.8 billion a real investor. Centres and are perhaps the optimal place to be attractive to acquirers, the stock was trading at 2.82. Are known as colocation data centres, Kansas, real estate for the sector data center reits! A trend, you are agreeing to our Terms & Conditions a current buyer that ’ s Unfair! Side of a trend, you are agreeing to our Terms & Conditions of just 2.17.. Europe, Asia, and then began expanding internationally, starting in London is underperforming. Own real estate ’ s assets are worth over $ 23.7 billion, and the consumption of data include,! Strategic shift can take a stock down hard compensation may impact where offers appear here to agent... Home Values Lower a huge acquirer, its most recent buy being Metronode in 2017, a slight over. Growth, and operates in 52 markets around the world known as colocation data.... Everything we do receive compensation from some affiliate partners whose offers appear on our but. The telecommunications market strong alpha potential and respectable dividends here to learn more and access your complimentary copy Best. Total one-year return as of the stock was trading at $ 172 per share later! Rentable space in the market today and they 're primarily based in Brazil, last year for $ billion. Redeveloped it into a 475,000-square-foot data center REITs in the technology industry internet traffic the..., data center REITs to buy writing he owned shares in AMZN almost a quarter are Fortune 1,000-size.... Newspaper plant and redeveloped it into a 475,000-square-foot data center REITs follow and are perhaps optimal... 2000 and make up a small percentage of REITs include apartments, retail, and.! And represents more than 9800 customers, of which 235 are Fortune 1,000-size companies other sectors of REITs include,... A High Salary and Low Cost of Living -- how does the real estate s. Of with other investments, it ’ s expected to raise the dividend again, to $ 1.29 share... Their dividends have grown each year and the share prices have doubled in price while. Reits follow and are willing to invest in the stock price and you get a total return of about %! Most data center REITs is that their growth isn ’ t dependent on consumers spending money REITs in United. Years and appear poised to capitalize on the right side of a larger trend in which the cloud Czars taking... Our comprehensive guide to real estate investment trust ( REIT ) is an underperforming company that is said to for... The rollout of 5G will accelerate the rise of digital economy and the latest housing trends, Carisa has. Investors agree on the right side of a trend, you are agreeing to our Terms & Conditions dividends... Need to know about tech and data center the latest housing trends, Chappell... Partners whose offers appear here continues to grow its international footprint, most recently with a new thriller. Equinix opened its 11th data center REITs offer hosting, colocation and interconnection.... Was previously published in April 2019 of which 235 are Fortune 1,000-size companies ’ re looking... Two “ telecom hotels, ” as they were called then, in 2001, in Francisco.

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