Digital Realty Trust: The Reasons I Am Staying On The Sidelines

2026-03-21 07:42:10 ET

Owning an equity REIT, like Digital Realty Trust ( DLR ), could be lucrative to many investors who want to have exposure to the real estate market but do not want to commit to owning a property directly. It is even more lucrative, when the REIT is active in the data center space, which is currently experiencing significant secular tailwinds due to the huge CAPEX spending on AI infrastructure buildout. Last, but not least, DLR's steadily growing dividends over the past two decades could also be attractive for income-focused investors, especially as the firm's income stream is relatively independent from consumer sentiment, meaning that the dividends are not likely to be in danger, even if people stop spending on discretionary goods....

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