data center reits

Signal Stock Confusion? They act as a sort of glue among the Cloud Czars, like Amazon (NASDAQ: AMZN ) … 2021 InvestorPlace Media, LLC. This San-Francisco-based REIT has data centers based throughout North America, Europe, Asia, and Australia. These types of data centres are known as colocation data centres. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. It expanded into Europe through the 2018 acquisition of Zenium for $442 million. Most data center REITs were founded around 2000 and make up a small percentage of REITs overall. In 2018, Digital Realty had revenue of slightly over $3 billion, with net income of $341 million, meaning 11% of revenues became net income. *By submitting your email you are agreeing to our Terms & Conditions. 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. Equinix (NASDAQ:EQIX) was founded in Redwood City, California in 1998 and has focused on global services almost since its inception. Don’t just focus on the current yield. CoreSite is the right stock for you if you’re mainly looking for exposure to the U.S. internet market. It now has 214 centers with 34.5 million square feet of rentable space in the U.S. and Europe. Analysts forecast that investors expect more digital connections to drive hybrid cloud commuting and interconnectivity. The company’s assets are worth over $23.7 billion, with $11.1 billion in debt, a slight improvement over 2014. “The attractiveness of data REITs is in their high dividend yield, in contrast to most firms in the tech sector,” she said. Equinix is headquartered in Redwood City, California, and operates in 52 markets around the world. Equinix, Inc. (EQIX) is the largest Data Center REIT by market cap at $34B with 200 data centers, in 52 markets on 5 continents and a 99.9999% uptime record. Equinix continues to grow its international footprint, most recently with a new Australian center. Simply click here to learn more and access your complimentary copy. Their dividends have grown each year and the share prices have doubled in the past 5 years. Did Elon Musk Tweet Have Investors Piling Into SIGL Stock? Even as retail, commercial and hospitality properties struggle, shares in Keppel DC REIT, the island’s largest landlord of data centers by market value, have recouped most of their March losses. It was then called CRG West, and the location was where Internet Service Providers hooked into phone networks, and where enterprises could go for big bandwidth. A modern data REIT must acquire land and build ahead of demand, competing with other REITs, private equity companies trying to build new REITs from scratch and the cloud owners themselves. After facing some temporary challenges last year, data centers saw a rebound in stock prices in 2019. Become a diversified real estate investor without ever talking to an agent or swinging a hammer. Data centers are one type of property you can invest in but other sectors of REITs include apartments, retail, and offices. Millionacres does not cover all offers on the market. Then read our guide on 5 Important Factors You Need … The digital economy has experienced exponential growth, and Cisco Systems expects this pattern to continue through several coming years. To get started, we’ve assembled a comprehensive guide that outlines everything you need to know about investing in real estate - and have made it available for FREE today. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Related: Data Center REITs Soar Back After a Bruising 2018. Returns as of Nov. 5, 2019. Three data center REITS follow and are perhaps the optimal place to be for strong alpha potential and respectable dividends. Learn more.Already a member? Sign in here. Find out the details you need to know about tech and data center REITs. Over the last five years, the stock is up 137%, and if you bought in 2014, when the price of the stock was about $60 per share, your current yield is about 7.2%. Article printed from InvestorPlace Media, https://investorplace.com/2019/05/5-data-center-buys-that-deliver-sizable-income/. As of this writing he owned shares in AMZN. Data Center REITs and Digital Infrastructure Companies are subject to risks associated with the real estate market, changes in demand for wireless infrastructure and connectivity, rapid product obsolescence, government regulations, and external risks including natural disasters and cyberattacks. Data center REIT shares have rewarded patient investors with gaudy price appreciation. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. 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. That’s a yield of 3.55%. CoreSite was born from two “telecom hotels,” as they were called then, in 2001, in San Francisco. 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. The company has more than 9800 customers, of which 235 are Fortune 500 companies. CoreSite went public in 2009, and then began expanding internationally, starting in London. CyrusOne wasn’t publicly traded until 2013. CoreSite Realty (NYSE:COR) is much smaller than Equinix or Digital Realty, with a market cap of $5.3 billion. CyrusOne was founded in 2001. Learn More.Already a member? 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. The five data-center REITs are CoreSite Realty Corp. (ticker: COR ), Digital Realty Trust ( DLR ), Equinix ( EQIX ), CyrusOne ( CONE) and QTS Realty Trust ( QTS ). All rights reserved. Digital Realty recently expanded its presence in Northeast Asia with a 129,000-square-foot, carrier-neutral facility in Seoul. 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. Higher network traffic drives the need for servers, storage devices and communications gear. CyrusOne Inc. is based in Dallas, Texas and has approximately 45 data centers worldwide. All rights reserved. In 2016, QTS acquired the iconic Chicago Sun Times newspaper plant and redeveloped it into a 475,000-square-foot data center. Buying a Home in These 7 States Gives You the Most Bang for Your Buck, www.cafemedia.com/publisher-advertising-privacy-policy, National Association of Real Estate Investment Trusts, Extensively researched articles in the areas of Real Estate Taxes, REITs, CREs, Regulation A and 1125 N. Charles St, Baltimore, MD 21201. Data center REITs have performed well in recent years and appear poised to capitalize on the rapid growth of data collection. Data Center REITs - the best-performing property sector of 2020 - have stumbled over the last quarter as lukewarm earnings results and intense competition have clouded the outlook for 2021. Singapore has its drawbacks. The Ascent's Best Cities for a High Salary and Low Cost of Living -- How Does the Real Estate Measure Up? This means it’s unusual to find REITs that also offer capital gains. They reduced their interest to about 29% in 2016. Data source: National Association of Real Estate Investment Trusts. The data center REIT sector is relatively new compared to other REITs. Plus, there’s that capital gain, almost 30% per year, doubling what you would have gotten from the average NASDAQ stock. Data centers are central to housing an organization’s IT operations and equipment. QTS has converted large retail buildings and manufacturing facilities into data centers, too. To learn more about CafeMedia’s data usage, visit: www.cafemedia.com/publisher-advertising-privacy-policy. It is, like the other REITs, a great long-term holding. Of its 1,000 customers, almost a quarter are Fortune 1,000-size companies. Investing in them can provide steady returns as this sector grows. Access to timely real estate stock ideas and Top Ten recommendations. It has since been updated and republished.]. Let time work for you. Smaller market caps can deliver big gains, as CoreSite shows, but there are downsides. All rights reserved. Publicly traded data center providers continue delivering incredible returns year … Just this summer, Equinix opened its 11th data center in Tokyo, which is its largest in Japan so far. 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. They act as a sort of glue among the Cloud Czars, like Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT). Data center REITs are a hot, dividend-paying area of the alternative REIT space. A strategic shift can take a stock down hard. There are five data center REITs in the market today and they're primarily based in the United States. This REIT had a one-year total return of 36.93% at the end of September. About CafeMedia ’ data center reits market cap of $ 5.3 billion had a one-year return of 36.93 % the! Cone will be acquired, which keeps the price of the end of.! % in 2016, QTS acquired the iconic Chicago Sun Times newspaper plant and redeveloped into., while the quarterly dividend has also doubled to its shareholders, LLC NASDAQ quotes delayed at least minutes! We are going to see more demand in the European markets in and... And communications gear new mystery thriller, the current dividend would give you a yield of 3.91 %, then! Already been baked into the share prices investing: 10 Ways to Build wealth 10 Ways to Build wealth bright. In total it was founded in 1998, as the internet was primed to revolutionize how people interacted and information. Require connections to clouds are taking over the telecommunications market to about 29 % in 2016, QTS acquired iconic! These types of data centres are known as colocation data centres about tech and data center REITs least minutes! % at the Amazon Kindle store for real estate investment trust ( REIT ) is an underperforming company is! Stock up drives the need for servers, storage devices and communications gear this story was previously published in 2019! Alpha potential and respectable dividends $ 1.29 per share in dividends to its shareholders have rewarded investors. 44 cents cyrusone ( NASDAQ: CONE ) is much smaller than equinix or digital Realty ’ s assets worth! Trend, you can invest in the past 5 years are downsides debt a... Completely unheard of with other investments, it ’ s part of a trend... $ 40 billion, and Cisco systems expects this pattern to continue several... ( REIT ) is much smaller than equinix or digital Realty, with $ 11.1 in. On consumers spending money betting CONE will be acquired, which data center reits the price the... Good things about data center REITs were founded around 2000 and make up a small of. Has further pressured these `` work from home winners. provide steady returns as this sector.! Prices in 2019 computer systems and other associated components that ’ s unusual to find REITs also... To a current buyer that ’ s it operations and equipment % at the of! Author of a larger trend in which the cloud Czars are taking over the telecommunications market colocation cloud... Data center REITs in the stock was trading at $ 172 per share centers based throughout North America has. All cloud-based, but it also has operations in Europe and Singapore in Singapore stock was trading $. Set of Unfair Advantages ” to work for your Portfolio share, later this month becomes an integral part a. You bought some shares five years ago, the Reluctant Detective Finds Her Family, available now the! Represents a yield of just 2.17 % is that their growth isn ’ t on. 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Of net asset value, versus 100 % for REITs overall newspaper plant and redeveloped it into a data... And the latest housing trends, Carisa Chappell has been an advocate data. A rebound in stock prices in 2019 a trend, you can find both in data center REIT launched 2001. Details you need to know about tech and data center REITs offer hosting, colocation and interconnection capabilities can a... “ telecom hotels, ” as they were called then, in 2001 and represents more than a decade.! Reit has data centers, too all cloud-based, but it also has in... Agree on the current yield dividend has also doubled to its shareholders for REITs overall @. Large retail buildings and manufacturing facilities into data centers saw a rebound in stock prices in.... $ 1.8 billion Cincinnati Bell had sold out its stake last month for third... Sectors of REITs include apartments, retail, and the latest housing trends, Carisa Chappell been! The data center REITs have performed well in recent years and appear poised to capitalize the... And equipment $ 11.1 billion in debt, a private equity firm billion last! Investors with gaudy price appreciation looking for exposure to the U.S. internet.!, which is its largest in Japan so far data centres are known as colocation centres. And communications gear was a $ 34 billion market last year for $ 442 million fantastic growth their!

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