Data centres are the next big thing in real estate and information technology. As more of the world shifts towards cloud computing, and as we get ready to adopt 5G, there will be high demand for data centres that house critical technology infrastructure. Companies that own and operate a sizeable number of such data centres sometimes list themselves as REITs. Digital Realty Trust is one such REIT. In fact, with the slump in traditional commercial office spaces, Digital Realty Trust is becoming a top choice for investors looking to buy REIT office stock. It manages over 30 million square feet of rentable data centre space across five continents spread out of over 300 data centres. Digital Realty Trust also happens to be the 6th largest publicly traded REIT in the US.
More About Digital Realty Trust
If you are wondering what exactly data centres are, then there is a simple explanation. Data centres are spaces that house servers and other network equipment. They offer a secure and reliable environment to house this equipment with cooling, uninterrupted power, and other connectivity. These factors are essential for maximum uptime and for consumers like us to be able to use digital websites and services 24X7. About 60% of Digital Realty Trust’s data centres are located in North America. More than 87% of these centres are owned by Digital Realty Trust, while the rest are leased. The top 20 customers of the REIT include giants like Facebook, IBM, LinkedIn, AT&T, Comcast, and Verizon. Digital Realty Trust is among the top office REIT stocks right now.
Digital Realty Trust has a weighted-average lease term of 4.7 years. It offers a 3-3.5% dividend yield, and its dividend per share has consistently increased throughout the past decade. The CAGR of dividends is close to 10% when looking at a period from 2005 to 2021. The stock closed at $148.88 on 14th May 2021, trading at a 3.12% dividend yield.