Utilizing the U.S. REIT market data during the period 1999 2011, Hoesli and Reka (2015) documented that liquidity can help explain contagion between real estate and financial markets, while there is no evidence of the impact of portfolio rebalancing and correlated information channels on contagion.
Right now, he said, citing industrywide data, REITs are trading at a significant discount to asset value.
In my monthly newsletter, the Forbes Real Estate Investor, I cover over 150 Real Estate Investment Trusts (or REITs) – with useful data, including recommendations that range from Strong Buy to Strong Sell.
Competitor Digital Realty Trust DLRR) made an offer on Friday to buy the Washington, D.C.-based data center REIT for $7.6 billion in an all-stock deal.
The best weekly performance again came from DuPont Fabros Technology (DFT +4.10%), which last week agreed to be acquired by Digital Realty Trust (DLR), another data center REIT.
Forbes: Readers, if you'd like to see long-term historical data on REIT stocks, a dependable, free source can be found here.
With the company planning no dividend increase this year, we're taking the opportunity to purchase more shares more cheaply, expecting our "Strong Buy" thesis on this transformative data center REIT to eventually play to our advantage.
They're a high-growth data center REIT specializing in highly reliable, enterprise-class, carrier-neutral data center properties in more than 45 mission-critical facilities worldwide, that protect and ensure continued IT infrastructure operation for approximately 1,000 customers - including over 210 of the Fortune 1000.
While taking into account that the TelX transaction will likely result in a moderate near-term leverage increase, Fitch Ratings said that the ratings action is based on its expectation that Digital's metrics will improve consistent with a BBB issuer default rating for a diversified data center REIT and in line with longer-term historical trends.
But for the data center REITs, a growing track record is helping overcome investors' lack of experience and misgivings regarding the riskiness of the nontraditional real estate sector.
