Wacky investor Brian Withers has an investment portfolio heavily focused on technology stocks. For this reason, he is rarely interested in a real estate company. However, when I recently learned more about Trust in digital real estate (NYSE: DLR), he realized that this is a property that cannot be ignored.
In this video from Motley Fool Live, written on 13 JulyWithers explains what he finds so compelling about digital real estate investments today.
Brian Withers: I want to go back to streaming. One of the interesting shows, one of my favorite shows that I did last week, was Rank where Matt Frankel, Anand Chokkavelu and I have reviewed all of my 19 shares. Well, this Friday we’ll do Rank again, and we’re going to look at Matt Frankel’s stock. His stock is completely different from mine. We only have one share that we share: Square… But one of the stocks I was looking at could benefit from increased internet bandwidth. That’s when streaming comes in. It’s just going to be online, and one of Matt Frankel’s top 20 stocks is Digital Realty, ticker DLR. And yes I’m talking about [real estate investment trust] REIT, REIT with dividends.
Now let me talk to you about what digital real estate is. He owns, acquires, develops and operates data centers. The company is focused on providing co-location of data centers, interconnection for domestic and international clients across a wide range of industry verticals – cloud IT, communication social networks, financial services, manufacturing, energy, healthcare, consumer goods, maybe streaming services somewhere. This is a really cool cloud pickaxe and shovel game. It owns and operates 290 data centers for more than 4,000 companies in 47 metropolitan areas in all regions except China. Super impressive client list. Facebook, IBM, Oracle, Verizon, AT&T, a Fortune 50 software company and a number of unnamed [Software-as-a-Service] SaaS companies. I’m happy to talk about these guys. It’s cloud-like and real-estate engineering. This is a really great company. They are the sixth largest publicly traded REIT with a 14-year straight dividend increase. This is a nice bonus.
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