Real estate investment trusts (REITs) own, operate or finance income-producing real estate; they avo...
CoreSite: Data Centers and Internet Royalties
06/01/2017 2:52 am EST
That’s 13 payments in total. And they’ve averaged over $14.3 million each time. The most recent payout was over $27 million!
What’s even better is that they’ve kept growing the whole time we’ve been invested. And that growth is picking up speed.
And management is far from done giving us “royalty” raises. We can expect another one to come in a few short months. Seven to be exact. I expect we’ll see another pay hike by this December.
That’s because cloud computing, the Internet of Things (IoT), and big data are going to keep growing for a long time. And companies are going to need more and more data center space. That is if they hope to keep up with growing consumer demand.
That puts CoreSite in an optimum position. The company is the leader in this field. And it’s the go-to name when a huge internet-based corporation wants to expand.
That’s because CoreSite still controls the most valuable real estate in the data center industry. The company already has data centers at all the major internet hubs. And it has extra property near them to expand even more.
That whopping three-year 129% increase in our “royalty” payments isn’t the only growth we’ve seen. We’ve gotten to watch CoreSite grow revenue by nearly 50% over that time, too.
The other thing growing? Well, that’s the share price. Our initial target price was $42 just three years ago. Now, it’s $125.
And we’re still recommending it. This stock still has potential to give you a 25% or better return every year for many years to come.
Now that we’ve seen it break through the $100 resistance level, there’s nothing to stop it from doubling in price yet again. CoreSite is still a growth stock, and it’s most definitely still a “Buy.”
Related Articles on REITS
John Buckingham is an industry-leading value investor, money manager and editor of The Prudent Specu...
John Freund is a high yield specialist for Todd Shaver's BullMarket. Here, he looks at two of his cu...
Welltower, Inc. (WELL) — a health care infrastructure real estate investment trust — has...