Digital Realty Trust Inc – 2021 Buy Real Estate Stocks
Data centers have become a buzzword in real estate circles. As the world moves towards greater digitization and greater use of the cloud, systematically organizing and storing data has become paramount. In the past, companies used to have servers at their facilities. However, with the growth of cloud computing, the model has become more centralized. Cloud companies now locate their servers at a remote location, thus reducing the operational costs for companies that do not have to maintain servers on-site. However, these data centers can be quite large and require a specific type of environment. Therefore, we have REITs that specialize in building and operating data centers. It is a growing area, and one such company is Digital Realty Trust. If you are searching for real estate stocks to invest in, then certainly have a look at Digital Realty Trust.
Digital Realty Trust – A Leader In Data Centers
Digital Realty Trust owns more than 290 data centers globally. It has a presence in 24 countries across six continents. This includes 47 metro areas. Digital Realty Trust has built significant credibility by successfully offering the five nines (an uptime of 99.999%) for ten consecutive years in the North American region. Digital Realty Trust was established in 2004 and has significantly ramped up its business in about 17 years of business. Digital Realty Trust helps customers with interconnection and colocation strategies. Data centers are energy-intensive. Hence, sustainability is an important issue facing all data center businesses. Digital Realty Trust is among the top 100 buyers of renewable energy in the US as it works on its ESG policy. In 2021 buy real estate stocks like Digital Realty Trust that are well-positioned for future growth trends.
Digital Realty Trust is a real estate investment trust. It has to distribute a large majority of its cash flows to its investors. Hence, dividends are an important metric to evaluate REITs. In the case of Digital Realty Trust, the dividend payout has grown from 2.72 per share to $4.6 per share over a 10-year period.