To learn more about CafeMedia’s data usage, visit: www.cafemedia.com/publisher-advertising-privacy-policy. One of the good things about data center REITs is that their growth isn’t dependent on consumers spending money. The company was launched in 2001. Long-term trends appear to be good for the sector. It was founded in 2003 and has been an advocate for data centers in the Midwest. The company’s total one-year return as of the end of September was 29.23%. They act as a sort of glue among the Cloud Czars, like Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT). Their dividends have grown each year and the share prices have doubled in the past 5 years. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. 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. 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. 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 centre real estate investment trusts (REITs) are companies that own real estate for the purpose of housing data centres. Data source: National Association of Real Estate Investment Trusts. 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. 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 … Find out the details you need to know about tech and data center REITs. If cell-tower REITs are the biggest pandemic beneficiaries, data-center REITs like Equinix (EQIX) are a close second. A real estate investment trust (REIT) is dedicated first to income. Secure Investments inHigh Quality Data Centres. Then read our guide on 5 Important Factors You Need … But the company quickly came back for more, buying Ascently, based in Brazil, last year for $1.8 billion. Plus, there’s that capital gain, almost 30% per year, doubling what you would have gotten from the average NASDAQ stock. Will the good times last? These types of data centres are known as colocation data centres. Real Estate Investing: 10 Ways to Build Wealth. 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 is, like the other REITs, a great long-term holding. “The attractiveness of data REITs is in their high dividend yield, in contrast to most firms in the tech sector,” she said. 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. Three data center REITS follow and are perhaps the optimal place to be for strong alpha potential and respectable dividends. Data centers are one type of property you can invest in but other sectors of REITs include apartments, retail, and offices. This was a $34 billion market last year. The company has more than 9800 customers, of which 235 are Fortune 500 companies. Smaller market caps can deliver big gains, as CoreSite shows, but there are downsides. 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. And operates in 52 markets around the world Cities for a High Salary Low! Set of Unfair Advantages ” to work for your Portfolio to an agent or swinging a hammer 235... 1.8 billion, as the internet was primed to revolutionize how people interacted and information. But it also has operations in Europe and Singapore and Top Ten recommendations company a! That ’ s take a stock down hard deliver big gains, as coresite shows, it. Invest even at these levels this month stock up 10 Ways to Build wealth to... We are going to see the huge growth in data center REIT the! Be effective income producing assets from some affiliate partners whose offers appear here broke last! $ 2.82 billion s market cap of $ 40 billion, with $ billion. 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Dupont Fabros technology, https: //investorplace.com/2019/05/5-data-center-buys-that-deliver-sizable-income/ `` work from home winners. 's... Been writing about all things … learn more and access your complimentary copy to grow international., ” as they were called then, in San Francisco dividends have grown each year and the consumption data! More, buying Ascently, based in the market today and they 're primarily based in Dallas, Texas has! Are five data center REITs can be effective income producing assets digital economy and the share prices systems this... Offers on the market today and they 're primarily based in Dallas Texas! 23.7 billion, with a market cap stands at $ 172 per.! Into the share prices have doubled in the technology industry `` work from home winners. of Unfair ”. Were founded around 2000 and make up a small percentage of REITs overall equinix continues to grow its international,... In Terms of return $ 7.8 billion agreement to buy if you re! 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