Digital Core REIT has upside, analysts say

Goola Warden
Goola Warden7/7/2022 09:12 AM GMT+08  • 2 min read
Digital Core REIT has upside, analysts say
Citi initiates coverage on Digital Core REIT with target price of US$1
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

There is a concerted effort by analysts to prove hedge fund manager Jim Chanos wrong about data centres.

Citi has initiated coverage on Digital Core REIT with a buy recommendation and a target of US$1. Citi says Digital Core REIT's portfolio of US$1.4 billion is valued at a historical capitalisation rate of 4.25% compared to a capitalisation rate of 4.7% based on NPI forecasts for FY2022.

On July 1, DBS Research had stated: "For Digital Core REIT, its long WALE of 5.5 years ensures long term occupancy and income. Its sponsor’s capability to operate data centres efficiently and deliver sufficient value to continuously entice and attract tenants was what helped Digital Realty establish itself as one of the world’s largest operators. As the data centre sector continues tothrive in this new digital age, and as DCREIT unceasingly works on improving its offering, we believe that demand for its properties will remain robust."

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.