Add a 19% one-year gain in the stock price and you get a total return of about 22%. As of this writing he owned shares in AMZN. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. If you’re on the right side of a trend, you are almost certain to prosper. The company’s total one-year return as of the end of September was 29.23%. But the company quickly came back for more, buying Ascently, based in Brazil, last year for $1.8 billion. We do receive compensation from some affiliate partners whose offers appear here. To learn more about CafeMedia’s data usage, visit: www.cafemedia.com/publisher-advertising-privacy-policy. QTS began life in Kansas, in 2003, expanded into Atlanta through a 2005 acquisition, and now has 25 data centers with 5.7 million square feet of rentable space. Data Center REITs offer hosting, colocation and cloud on-ramps to enterprises and Internet Service Providers. Plus, there’s that capital gain, almost 30% per year, doubling what you would have gotten from the average NASDAQ stock. Access to timely real estate stock ideas and Top Ten recommendations. [Editor’s note: This story was previously published in April 2019. If you bought some shares five years ago, the current dividend would give you a yield of 5.75%. Its early expansion was funded by the Carlyle Group, a private equity firm. Find Out More. Millionacres does not cover all offers on the market. Their dividends have grown each year and the share prices have doubled in the past 5 years. Let time work for you. CyrusOne Inc. is based in Dallas, Texas and has approximately 45 data centers worldwide. It’s expected to raise the dividend again, to $1.29 per share, later this month. Internet traffic is the primary driver of data-center-REIT performance. *By submitting your email you are agreeing to our Terms & Conditions. Related: Data Center REITs Soar Back After a Bruising 2018. The vaccine-driven sector rotation within the REIT sector has further pressured these "work from home winners." Learn More. 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. The Asian financial center had a much-publicized early success in containing the pandemic before an outbreak in dormitories densely packed with foreign workers, sending numbers soaring. This is key to successful income investing. Data Center Real Estate Investment Trusts (REITs) manage, develop and own data center facilities, offering solutions to individuals along with small, medium and large companies. The colocation market alone continues to grow at 10% each year, driven by the needs of the Cloud Czars, according to Synergy Research. As data becomes an integral part of everything we do, data center real estate investment trusts (REITs) have become more important. A real estate investment trust (REIT) is dedicated first to income. The REITs who have the data centers in the current / future portfolio: (1) Keppel DC REIT (AJBU.SI) – 100% (AUM$2.9B) . 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. Data centers trade at 94% of net asset value, versus 100% for REITs overall. Higher network traffic drives the need for servers, storage devices and communications gear. The company today has 45 data centers, mostly in the U.S., but it also has operations in Europe and Singapore. Will the good times last? Last year, Equinix had revenue of $5.09 billion, up from $2.44 billion in 2014, and it brought $365 million of that to the bottom line. Copyright © 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. Here is the story on the four major names in the space. quotes delayed at least 15 minutes, all others at least 20 minutes. 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. Article printed from InvestorPlace Media, https://investorplace.com/2019/05/5-data-center-buys-that-deliver-sizable-income/. It now has 214 centers with 34.5 million square feet of rentable space in the U.S. and Europe. It has since been updated and republished.]. Operating cash flow has also doubled. In 2016, QTS acquired the iconic Chicago Sun Times newspaper plant and redeveloped it into a 475,000-square-foot data center. 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. Data center REIT shares have rewarded patient investors with gaudy price appreciation. As of yesterday’s close it had a market cap of $26 billion, and last year delivered $4.32 per share in dividends to investors. 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. CoreSite was born from two “telecom hotels,” as they were called then, in 2001, in San Francisco. Equinix is headquartered in Redwood City, California, and operates in 52 markets around the world. Data centre real estate investment trusts (REITs) are companies that own real estate for the purpose of housing data centres. 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 It expanded into Europe through the 2018 acquisition of Zenium for $442 million. This REIT had a one-year total return of 36.93% at the end of September. But I’ve found REITs to buy whose prices tend to rise over time . 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. The new benchmark, which has been added to the widely-tracked FTSE Nareit U.S. Real Estate Index Series, includes listed REITs from the infrastructure, data center, and … That dividend yields a fat 4%. Simply click here to learn more and access your complimentary copy. Compensation may impact where offers appear on our site but our editorial opinions are in no way affected by compensation. This allows reader to sort the table (Yield / Gearing sort may be useful) or filter to a particular company to look at its data. Equinix is not a huge acquirer, its most recent buy being Metronode in 2017. CoreSite went public in 2009, and then began expanding internationally, starting in London. Data Center REITs pay an average dividend yield of 2.3%, which is below the REIT sector average dividend yield of around 3.4%. The company was launched in 2001. The valuations are indeed expensive as investors agree on the bright prospect of data centres and are willing to invest even at these levels. 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. Sign up for Real Estate Winners to create a wealth-building strategy today. © 2018 - 2021 The Motley Fool, LLC. 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%. That represents a yield of 3.91%, and the company’s market cap stands at $2.82 billion. This was a $34 billion market last year. They are leased by companies like Facebook, Amazon and IBM and can be effective income producing assets. Nasdaq The five data-center REITs are CoreSite Realty Corp. (ticker: COR ), Digital Realty Trust ( DLR ), Equinix ( EQIX ), CyrusOne ( CONE) and QTS Realty Trust ( QTS ). Here are some good data center REITs to buy. These five REITs have a total market cap of $89,473,000,000 and a 44.76% total year-to-date return as of Oct. 31, according to data from the National Association of Real Estate Investment Trusts. The company’s assets are worth over $23.7 billion, with $11.1 billion in debt, a slight improvement over 2014. Founded in 2001, it was bought by private equity players ABRY Partners in 2007 and then by Cincinnati Bell, a small phone company, in 2010. If you’re seeking both income and capital gains, you can find both in data center REITs. It is required to send 90% of earnings back to investors in the form of dividends. Investing in them can provide steady returns as this sector grows. The data centers hosted by REITs aren’t all cloud-based, but they usually require connections to clouds. 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. This San-Francisco-based REIT has data centers based throughout North America, Europe, Asia, and Australia. Will the Covid 19 Crisis Push Home Values Lower? These data centers usually contain heating, ventilation, and air conditioning … They act as a sort of glue among the Cloud Czars, like Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT). The adoption of 5G will accelerate the rise of digital economy and the consumption of data. That’s a yield of 3.55%. For real-estate investment trusts, or REITs, that make money by hosting data, the more people pretend to work from home and watch Netflix, the better. The company had a one-year return of 27.83% at the end of September. Digital Realty’s one-year return was 19.64% as of the end of September. Smaller market caps can deliver big gains, as CoreSite shows, but there are downsides. Thus, we are going to see the huge growth in Data Centers in the REIT space moving forward. The data center REIT launched in 2001 and represents more than 40 industries. The digital economy has experienced exponential growth, and Cisco Systems expects this pattern to continue through several coming years. If you do a Google search for something and then buy it on Amazon, the request and response likely went through a data center owned by a REIT. 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. Learn more! Data Center REITs suffered a bit of a rough patch in 4Q18, as investors feared over-building in the sub-sector as many of the REITs began construction of speculative projects. The company is expanding its Reston, Virginia, data center by 50,000 square feet; opened a new data center in downtown Washington, D.C,; and is breaking ground near downtown Chicago on a 169,000-square-foot data center. Signal Stock Confusion? 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.
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