Datacenter REITs
Anyone looking at datacenter reit's. $DLR paying 4.5% yield, 52 week low. Good tailwinds, data explosion, more co'S moving to hybrid, major SaaS co's moving off AWS, etc to ⬇️ costs. Box did this. how much longer will the $CRWD, $SNOW want to stay on AWS
Dissecting the Markets's avatar
The insider buying on $DLR is slow. I do like that $META LinkedIn (owned by $MSFT), $ORCL, $JPM, $CMCSA, $VZ, $T, $IBM, and other big companies are all clients. Though the short sellers might think that the big cloud computing companies are stealing business from these database REITs, having your own data center protects you from the outages that AWS and all of these other cloud computing platforms have. Plus, there could be a day where you'll have a cloud computing company wanting to accelerate its data storage capacity and find it more efficient to lease data center space than to build its own.
Matt wolodarsky (aka The Wealthy Owl)'s avatar
@dissectmarkets the unknow question for me is how much of anything do the big three - AWS, GOOG, AZURE lease from DC REITs? I dont think managing the physical building is a core compentency for them, they just drop their containers in and refresh..
But im no expert, speculating
Joey Hirendernath's avatar
@stock.owl is our resident expert on REITs would be good to have him share his perspective on $DLR
Rihard Jarc's avatar
Damn 4.5% yield seems low in this environment. But surely an interesting REIT subsector.
Rihard Jarc's avatar
Not an expert on REIT's so not sure where the yield are, but with 1 year treasuries over 4% doesn't seem that much, might be wrong. Do you have any more data on REIT yields in different subsectors?