Should Investors Retain Digital Realty Stock in Their Portfolio?

Zacks12-12

Digital Realty’s DLR portfolio of data centers globally is well-positioned to benefit from the growing reliance on technology and an acceleration in digital transformation strategies by enterprises. A...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2490984248?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/rYP8VPOUfQj30jWv52_m5w--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/53d9a3fd304ab73d580828e5367313eb","is_english":true,"pubTime":"2024-12-12 00:05","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2490984248","market":"us","top_or_hot":-1,"title":"Should Investors Retain Digital Realty Stock in Their Portfolio?","media":"Zacks","content":"<div>\n<p>Digital Realty’s DLR portfolio of data centers globally is well-positioned to benefit from the growing reliance on technology and an acceleration in digital transformation strategies by enterprises. A...</p>\n\n<a href=\"https://finance.yahoo.com/news/investors-retain-digital-realty-stock-160500466.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Should Investors Retain Digital Realty Stock in Their Portfolio?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nShould Investors Retain Digital Realty Stock in Their Portfolio?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-12 00:05 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/investors-retain-digital-realty-stock-160500466.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Digital Realty’s DLR portfolio of data centers globally is well-positioned to benefit from the growing reliance on technology and an acceleration in digital transformation strategies by enterprises. A...</p>\n\n<a href=\"https://finance.yahoo.com/news/investors-retain-digital-realty-stock-160500466.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4588","symbol_name":"碎股","start_time":0,"source_url":"https://finance.yahoo.com/news/investors-retain-digital-realty-stock-160500466.html","article_id":"2490984248","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/rYP8VPOUfQj30jWv52_m5w--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/53d9a3fd304ab73d580828e5367313eb"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2490984248","pubTimestamp":1733933100,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Digital Realty’s DLR portfolio of data centers globally is well-positioned to benefit from the growing reliance on technology and an acceleration in digital transformation strategies by enterprises. A solid tenant base assures stable revenues. It also carries out strategic investments in land, infrastructure and acquisitions, which is encouraging. Its healthy balance sheet position will likely aid its growth endeavors. However, competition in its industry and concentration of assets remain concerns.High growth in cloud computing, the Internet of Things and Big Data and the elevated demand for third-party IT infrastructure are spurring the demand for data center infrastructure. Growth in the artificial intelligence, autonomous vehicles and virtual/augmented reality markets is anticipated to be robust in the upcoming years. Demand is strong in top-tier data center markets and despite enjoying high occupancy, the top-tier markets are absorbing new construction at a faster pace.Shares of t","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4588":"碎股","BK4223":"办公室房地产信托","ISBC":"投资者银行","BK4194":"办公房地产投资信托","BK4585":"ETF&股票定投概念","BK4084":"特种房地产投资信托","BK4529":"IDC概念","CUZ":"卡津斯不动产信托基金","BK4211":"区域性银行","BK4566":"资本集团","GOOD":"格拉德斯通商业","DLR":"数字房地产信托公司","BK4160":"多样化房地产投资信托v","BK4222":"数据中心房地产信托"},"translate_title":"投资者应该在其投资组合中保留Digital Realty股票吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CUZ":1,"GOOD":1,"ISBC":1,"DLR":0.9},"content_text":"Digital Realty’s DLR portfolio of data centers globally is well-positioned to benefit from the growing reliance on technology and an acceleration in digital transformation strategies by enterprises. A solid tenant base assures stable revenues. It also carries out strategic investments in land, infrastructure and acquisitions, which is encouraging. Its healthy balance sheet position will likely aid its growth endeavors. However, competition in its industry and concentration of assets remain concerns.\nWhat’s Aiding DLR?\nHigh growth in cloud computing, the Internet of Things and Big Data and the elevated demand for third-party IT infrastructure are spurring the demand for data center infrastructure. Growth in the artificial intelligence, autonomous vehicles and virtual/augmented reality markets is anticipated to be robust in the upcoming years. Demand is strong in top-tier data center markets and despite enjoying high occupancy, the top-tier markets are absorbing new construction at a faster pace.\nDLR has a high-quality, diversified customer base comprising tenants from cloud, content, information technology, network, and other enterprise and financial industries. The company is poised for growth with more than 5,000 global customers and growing. Its tenant roster includes several behemoths, and numerous customers use multiple locations across the portfolio. This assures stable revenue generation for the company.\nDigital Realty is expected to ride on its growth curve backed by strategic investments in land, infrastructure and acquisitions. Following the third-quarter 2024 end, Digital Realty closed on the acquisition of a 6.7-acre parcel in Richardson, TX, for around $15 million to support the development of more than 80 megawatts (MW) of incremental IT capacity. In the third quarter of 2024, Digital Realty acquired the land and shell of one of its existing data centers in Schiphol Rijk, Amsterdam, for approximately €43 million, or $48 million. The site encompasses approximately 15 MW of fully leased capacity.\nDigital Realty has a solid balance sheet with ample liquidity and diversified sources of capital. The company exited the third quarter of 2024 with cash and cash equivalents of $2.18 billion. Its debt maturity schedule is well-laddered, with a weighted average maturity of 4.7 years and a 2.8% weighted average coupon as of Sept. 30, 2024. The company has no debt maturities until early 2025.\nIts capital-recycling efforts aimed at bolstering balance sheet strength and driving long-term growth are encouraging. For 2024, it expects to carry out dispositions/joint venture capital in the range of $1.0-$1.5 billion. With proceeds from asset sales and growth in cash flows as the signed leases commence, the company is expected to experience an improvement in net debt-to-adjusted EBITDA.\nShares of this Zacks Rank #3 (Hold) company have gained 24.2% over the past six months compared with the industry’s upside of 10.9%.\nImage Source: Zacks Investment Research\nWhat’s Hurting it?\nDigital Realty faces intense competition in its industry. Given the solid growth potential of the data center real estate market, competition is expected to increase in the upcoming period from existing players and the entry of new players. Amid this, there is likely to be aggressive pricing pressure in the data center market.\nAlthough the company has been focusing on expanding its global footprint, some of its assets are concentrated in certain regions. As of Sept. 30, 2024, Northern Virginia, Chicago and Frankfurt accounted for 18.5%, 7.5% and 5.9%, respectively, of the company’s total annualized rent. Therefore, the company’s performance is susceptible to the economic condition of these regions.\nStocks to Consider\nSome better-ranked stocks from the broader REIT sector are Cousins Properties CUZ and Gladstone Commercial GOOD, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nThe Zacks Consensus Estimate for Cousins Properties’ 2024 funds from operation (FFO) per share has been raised marginally over the past month to $2.68.\nThe Zacks Consensus Estimate for Gladstone’s 2024 FFO per share has moved 2.1% northward over the past month to $1.43.\nNote: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nCousins Properties Incorporated (CUZ) : Free Stock Analysis Report\nDigital Realty Trust, Inc. (DLR) : Free Stock Analysis Report\nGladstone Commercial Corporation (GOOD) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2490984248"}