Digital Realty Trust Inc.
), a niche real estate investment trust (REIT), has recently
signed a new lease agreement with Logicworks -- a premier
provider of cloud computing services that uses the Internet and
central remote servers to maintain data and applications -- for
an undisclosed amount. The lessee, headquartered in New York
City, would occupy Digital Realty's data center facility in
Piscataway, New Jersey.
The data center facilities of Digital Realty feature a
state-of-the-art power and cooling architecture that has been
optimized for green operation. The facilities typically use
metered power systems to ensure that clients pay only for the
In addition, each data center facility is equipped with
Digital Realty's PowerVU software, which enables centralized
monitoring and management of data center power consumption,
energy efficiency and load analysis to increase client
Digital Realty operates data centers and digital storage
facilities which are primarily used by telecommunication
companies to maintain their Internet presence or augment their
data networks. Data centers usually incur high costs for building
and maintenance, and as such supply is relatively inelastic.
Digital Realty provides flexible and cost effective data center
facilities to a wide range of customers, including domestic and
international companies across multiple industry verticals. Its
portfolio includes 110 properties throughout Europe, Asia,
Australia and North America spanning approximately 21.2 million
square feet (including 2.2 million square feet of redevelopment
With demand for digital storage facilities increasing in recent
years, Digital Realty has benefited greatly by negotiating
favorable lease terms and maintaining strong occupancy rates. The
long-term lease agreements have also insulated the company from
short-term volatility and unfavorable market swing experienced
during the recession. This, in turn, has enabled Digital Realty
to continue to pay out solid dividends to its shareholders.
The current rating on Digital Realty is Neutral and the stock
presently has a Zacks #3 Rank that translates into a short-term
MPG Office Trust Inc.
), one of the peers of Digital Realty, also has a Neutral
recommendation and a Zacks #3 Rank.
DIGITAL RLTY TR (DLR): Free Stock Analysis
MPG OFFICE TRST (MPG): Free Stock Analysis
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