“The attractiveness of data REITs is in their high dividend yield, in contrast to most firms in the tech sector,” she said. Milena Petrova, associate professor of finance at Syracuse University's Whitman School of Management, said in an interview with U.S News earlier this year that data centers are a safer bet than investing in technology stocks. CoreSite went public in 2009, and then began expanding internationally, starting in London. It was founded in 2003 and has been an advocate for data centers in the Midwest. 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. Returns as of Nov. 5, 2019. Data Center REITs have outperformed the broader REIT sector over the last five years, as well, and are expected to perform favorably as data center demand and economic conditions remain positive. Will the Covid 19 Crisis Push Home Values Lower? Data Center REITs offer hosting, colocation and cloud on-ramps to enterprises and Internet Service Providers. 3 Megatrends (and 9 Stocks) to Buy for the ‘Blue Wave’. But five years ago, the stock was trading at $172 per share. After facing some temporary challenges last year, data centers saw a rebound in stock prices in 2019. The Ascent's Best Cities for a High Salary and Low Cost of Living -- How Does the Real Estate Measure Up? CoreSite is the right stock for you if you’re mainly looking for exposure to the U.S. internet market. All rights reserved. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. 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. To a current buyer that’s a yield of just 2.17%. Singapore has its drawbacks. Digital Realty recently expanded its presence in Northeast Asia with a 129,000-square-foot, carrier-neutral facility in Seoul. Add a 19% one-year gain in the stock price and you get a total return of about 22%. Data center REIT shares have rewarded patient investors with gaudy price appreciation. QTS has converted large retail buildings and manufacturing facilities into data centers, too. Like QTS Realty Trust, CyrusOne (NASDAQ:CONE) is an underperforming company that is said to be attractive to acquirers. They act as a sort of glue among the Cloud Czars, like Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT). We do receive compensation from some affiliate partners whose offers appear here. It is, like the other REITs, a great long-term holding. If you’re on the right side of a trend, you are almost certain to prosper. Equinix (NASDAQ:EQIX) was founded in Redwood City, California in 1998 and has focused on global services almost since its inception. There are five data center REITs in the market today and they're primarily based in the United States. This was a $34 billion market last year. *By submitting your email you are agreeing to our Terms & Conditions. 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. This San-Francisco-based REIT has data centers based throughout North America, Europe, Asia, and Australia. 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 offer a range of products and services to help keep servers and data safe, including providing uninterruptable power supplies & air-cooled chillers. That dividend yields a fat 4%. The company’s assets are worth over $23.7 billion, with $11.1 billion in debt, a slight improvement over 2014. 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. CoreSite Realty Corporation, located in Denver, Colorado, has data centers in eight markets in North America. Yesterday it closed at $480. 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%. Name Price Distribution Yield Price to Book DPU NAV Property Yield Gearing Ratio; AI-'Aqar Healthcare REIT: 1.31: 5.95%: 1.01: 0.0780: 1.302: 6.37%: 40.9%: AI-Salam REIT If you bought some shares five years ago, the current dividend would give you a yield of 5.75%. The shares are up about 270% in the last five years, while quarterly dividends have tripled from 36 cents per share in 2014 to $1.10 now. 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. Some speculators are betting CONE will be acquired, which keeps the price of the stock up. Smaller market caps can deliver big gains, as CoreSite shows, but there are downsides. CoreSite was born from two “telecom hotels,” as they were called then, in 2001, in San Francisco. Data center REITs are a hot, dividend-paying area of the alternative REIT space. The company offers the largest number of interconnections with 333,000+ in total. They are leased by companies like Facebook, Amazon and IBM and can be effective income producing assets. The company has more than 9800 customers, of which 235 are Fortune 500 companies. A real estate investment trust (REIT) is dedicated first to income. Sign in here. 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. Here is the story on the four major names in the space. QTS went public in 2013 and has since doubled in price, while the quarterly dividend has also doubled to its current 44 cents. Analysts forecast that investors expect more digital connections to drive hybrid cloud commuting and interconnectivity. Dana Blankenhorn is a financial and technology journalist. But I’ve found REITs to buy whose prices tend to rise over time . This can be the downfall of retail and hotel REITs. A strategic shift can take a stock down hard. Equinix is headquartered in Redwood City, California, and operates in 52 markets around the world. It’s part of a larger trend in which the Cloud Czars are taking over the telecommunications market. Did Elon Musk Tweet Have Investors Piling Into SIGL Stock? Let’s take a closer look at how the data center REITs rank in terms of return. 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. 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 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. Indeed expensive as investors agree on the four major names in the European markets shares! Was 15.15 % as of this writing he owned shares in AMZN devices and communications gear create a wealth-building today. 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