Under-The-Radar Real Estate Investment Trusts REIT

Needless to say some people "trust" more than others, but what the heck let's just scan the open skies to see what's on the radar screens. As they say there's a lot of opportunities out there. Let's see if your MesaZona blogger can hit on just one - right here in Mesa: DuPont Fabros Technologies

6 Great Data Center REITs For 2017

First some background and context.

The need for data centers is growing, and these REITs could be a smart way to invest in it

Matthew Frankel Mar 13, 2017 at 12:03PM

The Motley Fool

Data centers are a relatively new and growing form of real estate to invest in.
As of 2017, there are several pure-play data center REITs listed on U.S. stock exchanges, including the industry's two largest companies, Equinix (NASDAQ:EQIX) and Digital Realty Trust (NYSE:DLR).

Here's why data center REITs could be a smart addition to your portfolio, and a little information about each of the options.

Company	Symbol	Market Cap	Recent Share Price	Dividend Yield
Equinix	EQIX	$26.9 Billion	$376.01	2.13%
Digital Realty Trust	DLR	$16.6 Billion	$103.98	3.58%
CyrusOne	CONE	$4.2 Billion	$48.20	3.49%
QTS Realty Trust	QTS	$2.3 Billion	$48.76	3.20%
DuPont Fabros Technology	DFT	$3.7 Billion	$47.43	4.22%
CoreSite Realty	COR	$2.9 Billion	$86.51	3.70%

PLEASE NOTE: Chart is author's own.

Market cap, share prices, and dividend yields are current as of 3/10/17.

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 Why invest in data center REITs?

In a nutshell, the need for data storage has grown tremendously over the past decade or so, and is forecast to continue to do so.

In fact, overall global IP traffic is expected to grow by 78% from 2017 to 2020, and certain individual forms of data traffic, like mobile data volume, are growing even faster. This should result in steadily growing demand for data center properties in the coming years.

(Image source: Digital Realty Trust investor presentation. Data source: Cisco.)

These projections are supported by the fact that occupancy rates have remained elevated, even though there has been lots of new inventory coming to market. For example, Digital Realty reports that data center inventory in the key Northern Virginia market grew by about 17% in 2016, but occupancy is at 96%.
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Here in Mesa there was this announcement May 10, 2017 at 2:48 pm
Leading data center provider to build
data center campus in Mesa

"DuPont Fabros Technology Inc. (NYSE:DFT), a leading owner, developer, operator, and manager of multi-tenant wholesale data centers, has announced it has purchased an undeveloped 56.5 acre site on Crismon Road just north of Elliot Road in Mesa's Elliot Road Technology Corridor. The company plans to develop a data center campus with capacity for up to 1 million square feet in the future. . .

DFT's facilities are designed to offer highly specialized, efficient and safe computing environments in a low-cost operating model. DFT's customers outsource their mission-critical applications and include national and international enterprises across numerous industries, such as technology, Internet content providers, media, communications, cloud-based, healthcare, and financial services.
DuPont Fabros Technology's selection of Mesa for its new data center site puts it squarely in the East Valley's thriving technology hub and close to Phoenix-Mesa Gateway Airport," Sandra Watson, president and CEO of the Arizona Commerce Authority, said. "This purchase demonstrates that Arizona's technology ecosystem, pro-business mindset, and programs that support the success of data center operations make our state a preferred location for industry leaders. . .
DuPont Fabros Technology is a real estate investment trust (REIT) headquartered in Washington, D.C.
Some other details from the source > http://www.mesanow.org/news/public/article/1887
For more information, please visit www.dft.com. 
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Update today from https://www.marketbeat.com/stocks/NYSE/DFT/ 
DuPont Fabros Technology Stock Price, News & Analysis (NYSE:DFT)

$66.31 -1.57 (-2.31 %)

(As of 12/26/2017 01:23 PM ET)

Previous Close $67.88

Today's Range $65.41 - $67.94

52-Week Range $37.54 - $69.33

Volume4.40 million shs

Average Volume883,602 shs

Market Capitalization$5.94 billion

P/E Ratio40.19

Dividend Yield2.95%

Beta0.68

And this history and forecast from https://www.marketbeat.com/stocks/NYSE/DFT/#EarningsHistory

DuPont Fabros Technology (NYSE:DFT) Earnings History and Estimates Chart

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Under The Radar REITs: Data Centers to Cannabis Farms
17 Dec 2017 @ 11:06 AM
Link > Forbes  
With their tax-advantaged corporate structure, real estate investment trusts are a popular investment for those seeking above-average dividend yields. Several MoneyShow.com contributors see both growth and income potential from a diverse group of REITs focused on such under-the-radar areas as student housing, billboards, casinos and storage facilities
Easterly
"The U.S. government is the largest employer in the world and the largest office tenant in the U.S. Easterly is the only internally managed REIT with a focus on investing in U.S. government-leased buildings.
Easterly sticks to critical missions of the federal government that don't go out of favor: agencies like the Federal Bureau of Investigation and the Immigration and Customs Enforcement.
The REIT only deals with the federal government, and the new REIT does not have an interest to work with any other government, state or local, because it is not backed by the “full faith and credit” of the U.S.
The portfolio is 100% leased and the weighted average age is 11.5 years.
Most of its buildings are office buildings (67%) and the rest are either courthouse/office (6%), lab (9%), VA Outpatient (11%) or others (7%). Because DEA does not lease to state agencies, there are no risks related to appropriations.
Easterly’s acquisition of two VA outpatient clinics marks the company's entry into an important new market. Meanwhile, the REIT’s latest acquisition is an FBI facility in Salt Lake City.
Easterly is on track to become a “blue chip” REIT.
I expect it to generate returns going forward in the range of 12-14% annually. Also, senior management owns approximately 14% of Easterly, providing strong alignment of interest with shareholders (of which the author of the article is one)."
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> "We’re investing in a company that owns many of the facilities used to grow legal weed. And we’ll be getting a little slice of the profits from every single grower that's using those spaces.

The company is called Innovative Industrial Properties, Inc., and it falls under one of our bread-and-butter industries — real estate investment trusts (REITs).

It’s still relatively small but is poised to grow exponentially as the legal marijuana market sweeps the country.

It was founded just last year in San Diego to take advantage of the growing medical marijuana markets in the U.S. And it’s grown (right along with all that pot) over the past year into becoming the premier landlord to some of the country’s biggest and best pot farmers.
Typically, the company buys a property that a grower has already established and then leases it back to the grower. This way, IIPR doesn’t have to worry about filling the space and the grower may use the money from selling it to IIPR to expand operations.
Innovative Industrial Properties uses the same kind of leasing structure as Realty IncomeO +0.66%.
That’s a triple-net lease.
In case you’ve forgotten what that is, it means that the tenant is responsible for the maintenance of the facility and any necessary repairs. The tenant also pays the property taxes and insurance. All IIPR has to do is sit back and collect the rent.
So, let’s get into this one as soon as possible and start adding those quarterly payments to our growing pile of reefer royalties. Innovative Industrial is a Buy under $25. I have a 12-month price target of $32.50.

> American Campus Communities, the largest real estate investment trust (REIT) specializing in rental housing for U.S. college students, has underperformed this year, giving up almost 12% of its value.
The stock sold off hard after management lowered its full-year guidance for funds from operation by $0.07 per share. Hurricane-related charges and expenses related to American Campus Communities’ $591 million purchase of seven high-end properties from Core Spaces accounted for some of this downward adjustment.
Excluding these three trouble spots, the REIT’s 57 other markets posted a 98% occupancy rate. In other words, these market-specific challenges don’t appear to extend to the rest of the portfolio.
Despite American Campus Communities’ recent hiccups, we continue to like the higher occupancy rates and lower-risk nature of student housing, as well as the REIT’s focus on pedestrian-friendly and bike-friendly properties within 0.2 miles of major universities. These rental units tend to book up much faster than those in outlying areas and support higher price increases.
More important, American Campus Communities has proved itself a savvy portfolio manager over the years. Recently, the management team has highlighted the strong demand for student housing among international investors.
The REIT has a multi-year plan to skew the portfolio toward schools with marquee sports programs in so-called power conferences and top research universities — colleges with strong enrollment trends and, therefore, housing demand.
With a 4.1% yield and an appealing business model, American Campus Communities rates a Buy up to $45 for patient investors.

Mark Skousen, High-Income Alert

Based in San Francisco, Digital Realty Trust DLR -0.31%

Digital Realty Trust

DLR

$114.1$-0.36(-0.31%)

As of 12/18/2017, 05:53pm EST

is a data center REIT offering everything from move-in-ready spaces with configurable power systems to state-of-the-art customized data centers. This is an enormous opportunity. Businesses, non-profit organizations and government agencies are all drowning in a sea of data. Based in San Francisco, is a data center REIT offering everything from move-in-ready spaces with configurable power systems to state-of-the-art customized data centers. This is an enormous opportunity. Businesses, non-profit organizations and government agencies are all drowning in a sea of data.

Why do so many businesses and non-profit organizations turn to Digital Realty? Its data centers are designed, built and operated by professionals with decades of experience. Its 170-plus properties in 11 cities on four continents are centered where customers need them.
And the company has the financial strength to be a stable and reliable long-term partner. The numbers here are already excellent. Digital Realty took in $2.26 billion over the last 12 months. In the most recent quarter, earnings soared 56% on an 11% increase in revenue. Its operating margin tops 25%.
Digital Realty is organized as a real estate investment trust (REIT). This allows the company to avoid the corporate income tax and pass net income straight through to shareholders. So, you’ll collect a 3.2% dividend yield here. However, I see plenty of capital appreciation potential here, too.
Digital Realty has set the global standard for technical real estate, offering a unique ability to acquire, manage and scale-up data center campuses. With the data universe growing exponentially, its centers are fast becoming the corporate world’s go-to storage solution.