DuPont Fabros Technology has carved out a niche in high-tech
real estate: It's a real estate investment trust (REIT) that
builds and operates data centers housing servers for some of the
country's biggest Internet and computer companies, includingYahoo
) andMicrosoft (
DuPont Fabros Technology 's (
) data centers are huge buildings outwardly resembling office
buildings that might be found in an industrial park. But few
workers are inside. Instead, there are densely packed rows of
servers that are secure and can provide reliable power.
DuPont Fabros operates 10 data centers in Bristow, Va., a huge
complex of five data centers in Ashburn, Va., and another in
Chicago -- and it recently opened early phases of centers in
Piscataway, N.J., and Santa Clara, Calif.
Its spaces comprise 2.6 million square feet and supply 227
megawatts to servers and computer equipment.
Funds from operations, or FFO, the REIT version of earnings,
have been growing rapidly. FFO for the past three quarters grew
34%, 50% and 40% from the year-ago periods.
FFO has grown for the past four years and is expected to grow
20% this year and 5% in 2015. Revenue has grown each year since
at least 2007.
DuPont Fabros said on May 22 that it will pay a
35-cents-per-share quarterly dividend on July 15 to shareholders
of record July 3.
The dividend works out to an annualized yield of 5.3%. REITs
avoid paying corporate taxes if they pass through most of their
FFO as dividends, so many have impressive yields.
The quarterly dividend has increased each year since it
offered a 15-cent dividend in 2007.That's the year the company
went public. It was pummeled in the financial crisis, losing 93%
of its value.
It has since recovered and broke out of a cup-with-handle base