Digital Realty Trust is one of the largest data center companies in the US. It is also the sixth-largest real estate investment trust in the US. It has increased its dividend payments for 16 years in a row. The demand for data centers has jumped significantly as the growth of digital and cloud computing plays out. The existing infrastructure of having servers on-site has been gradually transitioning towards centralized data centers in remote locations. The arrival of 5G and IoT will increase the flow and storage of data further as more and more activities of our everyday lives move online. For some investors, the rise of data centers is a long-term trend. If you are someone who believes in leveraging this trend and are on the lookout for real estate stocks to buy 2021, then data center REITs are a possible option.
Some Metrics Of Digital Realty Trust
Digital Realty Trust has an estimated enterprise value of $58 billion. It has delivered 11% CAGR in its core funds from operations since 2005. The weighted average lease term on record is around five years. Digital Realty Trust has a global presence with more than 4000 customers. Its key focus is the Forbes Global 2000 Enterprise group. Having a global presence is important not only because of globalization but also because the location of the servers can make a difference in terms of performance. Having data centers in key strategic locations across multiple continents is important from a technical as well as a diversification point of view. The dividend payouts have grown from $1 in 2005 to $4.64 in 2021. The payout ratio has gone down from above 90% in 2005 to 77% in 2021. Digital Realty Trust is one of the strong candidates in the 2021 real estate stocks list.
Digital Realty Trust’s long-term price chart shows a very clear and upward trajectory. The stock has grown more than 10X since the early days of 2004-2005. There have been pullbacks along the way. But the trend of making higher tops and higher bottoms continues.