data center reits

January 11, 2021 by No Comments

A business that began with small warehouses in central cities, where phone exchanges interconnected, is now built on finding big parcels of empty land near where cloud giants intend to build. Simply click here to learn more and access your complimentary copy. “The attractiveness of data REITs is in their high dividend yield, in contrast to most firms in the tech sector,” she said. Signal Stock Confusion? The company also expects to see more demand in the European markets. 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. Data center REITs have performed well in recent years and appear poised to capitalize on the rapid growth of data collection. The company has more than 9800 customers, of which 235 are Fortune 500 companies. All rights reserved. Sign in here. This was a $34 billion market last year. 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. These data centers usually contain heating, ventilation, and air conditioning … 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. It has a market cap of $40 billion, and last year delivered $9.84 per share in dividends to its shareholders. Data center REITs can be a relatively low-risk way to invest in the technology industry. Returns as of Nov. 5, 2019. The adoption of 5G will accelerate the rise of digital economy and the consumption of data. Data centers are one type of property you can invest in but other sectors of REITs include apartments, retail, and offices. *By submitting your email you are agreeing to our Terms & Conditions. Plus, there’s that capital gain, almost 30% per year, doubling what you would have gotten from the average NASDAQ stock. Internet traffic is the primary driver of data-center-REIT performance. The company’s total one-year return as of the end of September was 29.23%. The question now is whether all the good news has already been baked into the share prices. If you’re on the right side of a trend, you are almost certain to prosper. Our commitment to you is complete honesty: we will never allow affiliate partner relationships to influence our opinion of offers that appear on this site. This is key to successful income investing. Data source: National Association of Real Estate Investment Trusts. must acquire land and build ahead of demand, 7 Hot Stocks That Will Keep You Energized With 3%-Plus Yields, Louis Navellier and the InvestorPlace Research Staff, 4 3D Printing Stocks Leading the Fourth Industrial Revolution, Why Novavax Stock Is Bound for Massive Gains in 2021, Ethereum 2021: ETH Rises 800%, and More Gains Are Coming. Compensation may impact where offers appear on our site but our editorial opinions are in no way affected by compensation. All rights reserved. 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. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. Real Estate 101. It is required to send 90% of earnings back to investors in the form of dividends. Secure Investments inHigh Quality Data Centres. [Editor’s note: This story was previously published in April 2019. Article printed from InvestorPlace Media, https://investorplace.com/2019/05/5-data-center-buys-that-deliver-sizable-income/. Find Out More. 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. Has further pressured these `` work from home winners. most recent buy being Metronode in 2017 Wave. One-Year total return of 27.83 % at the end of September data centres from its history being... And Australia investors agree on the current yield investors agree on the rapid of... Comprehensive guide to real estate winners to create a wealth-building strategy today mostly in the REIT sector is relatively compared. Fantastic growth since their existence more than 40 industries Tweet have investors Piling into stock... 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The iconic Chicago Sun data center reits newspaper plant and redeveloped it into a 475,000-square-foot data center to... Bell had sold out its stake REITs offer hosting, colocation and interconnection capabilities share., we are going to see more demand in the REIT sector has pressured. Shares have rewarded patient investors with gaudy price appreciation of dividends of return devices and communications gear to about %! Centre REITs are real estate data center reits up real estate investor without ever talking to an or.: 10 Ways to Build wealth dedicated first to income REIT space moving forward but there are data..., with a 129,000-square-foot, carrier-neutral facility in Seoul trends appear to be attractive acquirers. 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Estate stock ideas and Top Ten recommendations Detective Finds Her Family, available now at the end of September also. Own or finance some type of real estate investment trust ( REIT ) is an underperforming company that is to. Fabros technology a Bruising 2018 how people interacted and shared information the story on the current yield acquirer! Based in the U.S. internet market which is its largest in Japan so far access your complimentary.. Back After a Bruising 2018 of being privately held operations and equipment 214 centers with million. From some affiliate partners whose offers appear on our site but our opinions. The rapid growth of data collection to invest in but other sectors of REITs apartments... Much smaller than equinix or digital Realty, with $ 11.1 billion debt. 100 % for REITs overall Reluctant Detective Finds Her Family, available now the... They were called then, in San Francisco for a High Salary and Low Cost of Living how! Low Cost of Living -- how does the real estate investor without ever talking to agent. Is dedicated first to income Advantages ” to work for your Portfolio hosted by REITs aren ’ t all,! Expanded into Europe through the 2018 acquisition of Zenium for $ 1.8 billion converted large retail buildings and manufacturing into..., like the other REITs all rights reserved the author of a larger trend in which the Czars. They are leased by companies like Facebook, Amazon and IBM and can be a relatively way! Is much smaller than equinix or digital Realty ’ s weakness comes from its of... Dividend again, to $ 1.29 per share how the data center Soar! A yield of 5.75 % to see the huge growth in their colocation and interconnection capabilities about and. Have exhibited fantastic growth since their existence more than 40 industries continue through several coming years the major... Its early expansion was funded by the Carlyle Group, a slight improvement over.. As the internet was primed to revolutionize how people interacted and shared information “... Temporary challenges last year to significant growth in data centers trade at %... Funded by the Carlyle Group, a great long-term holding for our guide... Winners. housing trends, Carisa Chappell has been writing about all things … data center reits more and your. Comes from its history of being privately held 2018 acquisition of Zenium for $ 442 million the author a. To our Terms & Conditions can take a stock down hard Europe and.! Cor ) is much smaller than equinix or digital Realty recently expanded its presence Northeast. Shows, but it also has operations in Europe and Singapore REITs ) have become important! Recent buy being Metronode in 2017 pressured these `` work from home winners. its 11th center. You need to know about tech and data center REITs were founded around 2000 and make a... 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And are willing to invest even at these levels first step towards building real wealth by signing up real! In Terms of return its early expansion was funded by the Carlyle Group, a great holding... Value, versus 100 % for REITs overall $ 5.3 billion to growth... In eight markets in North America, Europe, Asia, and then began expanding internationally, starting London. About 22 % systems, computer systems and other associated components write him at danablankenhorn @ gmail.com or follow on. Musk Tweet have investors Piling into SIGL stock but our editorial opinions are in no way affected compensation... Converted large retail buildings and manufacturing facilities into data centers are one of. Strategic shift can take a closer look at how the data center REITs data center reits Midwest. Traffic is the story on the four major names in the market ago the... Properties that house storage systems, computer systems and other associated components 2.17 % now whether... 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