Short interest for Digital Realty Trust gives investors a sense of the degree to which investors are betting on the decline of Digital Realty Trust's stock. Short interest data is updated every two weeks.

Digital Realty Trust Stock (NYSE:DLR), Short Interest Report

Digital Realty Trust

Digital Realty owns and operates over 300 data centers worldwide. It has nearly 40 million rentable square feet across five continents. Digital's offerings range from retail co-location, where an enterprise may rent a single cabinet and rely on Digital to provide all the accommodations, to "cold shells," where hyperscale cloud service providers can simply rent much, or all, of a barren, power-connected building. In recent years, Digital Realty has de-emphasized cold shells and now primarily provides higher-level service to tenants, which outsource their related IT needs to Digital. The company operates as a real estate investment trust.

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Digital Realty Trust, Inc. 5.250% Series J Cumulative Redeemable Preferred Stock

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Digital Realty Trust, Inc. 5.200% Series L Cumulative Redeemable Preferred Stock

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Digital Realty Trust shares are trading lower after the company announced a public offering of 10.5 million shares of common stock.

&nbsp;Digital Realty (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DLR#NYSE">DLR</a>),&nbsp;the largest global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, announced today that it has commenced an underwritten registered public offering to sell 10,500,000 shares of its common stock. The Company intends to grant the underwriters in the offering a 30-day option to purchase up to an additional 1,575,000 shares of its common stock.
BofA Securities, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC will act as joint book-running managers for the public offering.

News

Offerings

Digital Realty Announces Public Offering Of 10.5M Shares Of Common Stock

UBS analyst John Hodulik maintains Digital Realty Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DLR#NYSE">DLR</a>) with a Neutral and raises the price target from $143 to $147.

Price Target

Analyst Ratings

UBS Maintains Neutral on Digital Realty Trust, Raises Price Target to $147

TD Cowen analyst Michael Elias maintains Digital Realty Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DLR#NYSE">DLR</a>) with a Hold and raises the price target from $116 to $122.

TD Cowen Maintains Hold on Digital Realty Trust, Raises Price Target to $122

HSBC analyst Phani Kanumuri maintains Digital Realty Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DLR#NYSE">DLR</a>) with a Reduce and raises the price target from $115 to $118.

HSBC Maintains Reduce on Digital Realty Trust, Raises Price Target to $118

Digital Realty Trust shares are trading higher after the company reported better-than-expected FFO results.

2024 Outlook
Digital Realty maintained its 2024 Core FFO per share and Constant-Currency Core FFO per share outlook of $6.60 - $6.75. The assumptions underlying the outlook are summarized in the following table.&nbsp;
<figure class="table"> 
<table>
<tbody>
<tr>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">As&nbsp;of</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">As&nbsp;of</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Top-Line and Cost Structure</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">February 15, 2024</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">May 2, 2024</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Total revenue</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$5.550 - $5.650 billion</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$5.550 - $5.650 billion</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Net non-cash rent adjustments (1)</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">($35 - $40 million)</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">($35 - $40 million)</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Adjusted EBITDA</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$2.800 - $2.900 billion</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$2.800 - $2.900 billion</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;G&amp;A</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$450 - $460 million</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$450 - $460 million</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Internal Growth</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Rental rates on renewal leases</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Cash basis</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">4.0% - 6.0%</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">5.0% - 7.0%</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;GAAP basis</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">6.0% - 8.0%</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">7.0% - 9.0%</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Year-end portfolio occupancy</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">+100 - 200 bps</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">+100 - 200 bps</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;"Same-Capital" cash NOI growth (2)</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">2.0% - 3.0%</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">2.5% - 3.5%</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Foreign Exchange Rates</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;U.S. Dollar / Pound Sterling</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$1.25 - $1.30</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$1.25 - $1.30</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;U.S. Dollar / Euro</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$1.05 - $1.10</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$1.05 - $1.10</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;External Growth</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Dispositions / Joint Venture Capital</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Dollar volume</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$1,000 - $1,500 million</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$1,000 - $1,500 million</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Cap rate</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">6.0% - 8.0%</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">6.0% - 8.0%</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Development</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;CapEx (Net of Partner Contributions) (3)</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$2,000 - $2,500 million</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$2,000 - $2,500 million</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Average stabilized yields</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">10.0%+</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">10.0%+</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Enhancements and other non-recurring CapEx&nbsp;(4)</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$15 - $20 million</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$15 - $20 million</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Recurring CapEx + capitalized leasing costs (5)</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$260 - $275 million</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$260 - $275 million</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Balance Sheet</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Long-term debt issuance</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Dollar amount</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$0 - $1,000 million</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$0 - $1,000 million</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Pricing</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">5.0% - 5.5%</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">5.0% - 5.5%</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Timing</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">Mid-Year</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">Mid-Year</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Net income per diluted share</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$1.80 - $1.95</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$1.80 - $1.95</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Real estate depreciation and (gain) / loss on sale</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$4.40 - $4.40</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$4.40 - $4.40</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Funds From Operations / share (NAREIT-Defined)</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$6.20 - $6.35</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$6.20 - $6.35</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Non-core expenses and revenue streams</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$0.40 - $0.40</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$0.40 - $0.40</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Core Funds From Operations / share</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$6.60 - $6.75</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$6.60 - $6.75</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Foreign currency translation adjustments</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$0.00 - $0.00</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$0.00 - $0.00</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">&nbsp;Constant-Currency Core Funds From Operations / share</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$6.60 - $6.75</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1">$6.60 - $6.75</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
</tbody>
</table>
</figure><figure class="table"> 
<table>
<tbody>
<tr>
<td colspan="1" rowspan="1"> &nbsp;</td>
<td colspan="1" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">(1)</td>
<td colspan="1" rowspan="1">Net non-cash rent adjustments represent the sum of straight-line rental revenue and straight-line rental expense, as well as the amortization of above- and below-market leases (i.e., ASC 805 adjustments).&nbsp;</td>
</tr>
<tr>
<td colspan="1" rowspan="1">(2)</td>
<td colspan="1" rowspan="1">The "Same-Capital"&nbsp;pool includes properties owned as of December 31, 2022 with less than 5% of total rentable square feet under development. &nbsp;It excludes properties that were undergoing, or were expected to undergo, development activities in 2023-2024, properties classified as held for sale, and properties sold or contributed to joint ventures for all periods presented.</td>
</tr>
<tr>
<td colspan="1" rowspan="1">(3)</td>
<td colspan="1" rowspan="1">Excludes land acquisitions and includes Digital Realty's share of JV contributions. Figure is net of JV partner contributions.</td>
</tr>
<tr>
<td colspan="1" rowspan="1">(4)</td>
<td colspan="1" rowspan="1">Other non-recurring CapEx represents costs incurred to enhance the capacity or marketability of operating properties, such as network fiber initiatives and software development costs.</td>
</tr>
<tr>
<td colspan="1" rowspan="1">(5)</td>
<td colspan="1" rowspan="1">Recurring CapEx represents non-incremental improvements required to maintain current revenues, including second-generation tenant improvements and leasing commissions.</td>
</tr>
<tr>
<td colspan="2" rowspan="1"> &nbsp;</td>
</tr>
<tr>
<td colspan="2" rowspan="1">Note: The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. Please see Non-GAAP Financial Measures in this document for further discussion.</td>
</tr>
</tbody>
</table>
</figure>

Guidance

Digital Realty Trust  Maintains Its 2024 Core FFO Per Share And Constant-Currency Core FFO Per Share Outlook Of $6.60-$6.75

Digital Realty (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DLR#NYSE">DLR</a>), a global provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions, today announced a collaboration with Oracle to accelerate the growth and adoption of artificial intelligence (AI) among enterprises. The strategic collaboration aims to develop hybrid integrated solutions that address <a href="https://c212.net/c/link/?t=0&amp;l=en&amp;o=4155831-1&amp;h=2055603120&amp;u=https%3A%2F%2Fwww.digitalrealty.com%2Fresources%2Freports%2Fdata-gravity-index&amp;a=Data+Gravity">Data Gravity</a> challenges, expedite time to market for enterprises deploying next-generation AI services, and unlock data and AI-based business outcomes.
As part of this collaboration, Oracle will deploy critical GPU-based infrastructure in a dedicated Digital Realty data center in Northern Virginia. This deployment, which leverages Digital Realty's open, purpose-built global data center solution <a href="https://c212.net/c/link/?t=0&amp;l=en&amp;o=4155831-1&amp;h=2663483063&amp;u=https%3A%2F%2Fwww.digitalrealty.com%2Fplatform-digital&amp;a=PlatformDIGITAL%C2%AE">PlatformDIGITAL&#xAE;</a>, will cater to a wide range of enterprises and AI customers, helping them to address critical infrastructure challenges, including those experienced with NVIDIA and AMD deployments. By leveraging the expertise and resources of both Oracle and Digital Realty, customers with mixed requirements can benefit from a tailored and efficient solution that meets their specific needs for GPU-based infrastructure.
This announcement further strengthens Digital Realty's existing partnership with Oracle, which currently encompasses multiple deployments across the globe, 11 Oracle Cloud Infrastructure (OCI) <a href="https://c212.net/c/link/?t=0&amp;l=en&amp;o=4155831-1&amp;h=2790657229&amp;u=https%3A%2F%2Fwww.oracle.com%2Fuk%2Fcloud%2Fnetworking%2Ffastconnect%2F&amp;a=FastConnect">FastConnect</a> points of presence, a global <a href="https://c212.net/c/link/?t=0&amp;l=en&amp;o=4155831-1&amp;h=3529539683&amp;u=https%3A%2F%2Fwww.digitalrealty.com%2Fplatform-digital%2Fconnectivity%2Fservice-fabric&amp;a=ServiceFabric%E2%84%A2">ServiceFabric&#x2122;</a> presence, and a recent Oracle Solution Center deployment in one of Digital Realty's Frankfurt data centers. In the fourth quarter of last year, Digital Realty successfully implemented an OCI Dedicated Region deployment for a major financial services customer, showcasing the potential of the collaboration between Oracle and Digital Realty in meeting enterprise customers' hybrid cloud requirements.
Patrick Cyril, Global Vice President, Technical Sales &amp; Customer Excellence – Revenue Operations, Oracle: "We're excited to be working with Digital Realty to bring innovative solutions to the market that empower our enterprise customers workloads and their ecosystems to harness the boundless possibilities of AI. Together, we're not just pioneering technology; we're unlocking a future where every challenge is met with unparalleled innovation and every opportunity is maximized."
Chris Sharp, Chief Technology Officer, Digital Realty: "We're delighted to build upon our relationship with Oracle and enable the next generation of hybrid and private AI adoption among enterprises. Together, we're bringing the extensive capabilities of the cloud to enterprises' private data sets through secure interconnection, unlocking new data-driven business outcomes." &nbsp;
This collaboration between Digital Realty and Oracle signifies a significant step forward in the advancement of AI technologies. By combining their expertise and resources, these industry leaders are poised to revolutionize the AI landscape and empower enterprises to unlock the full potential of their data.

ORCL

Digital Realty And Oracle Further Strengthen Collaboration To Enable The Next Generation Of Cloud Native And AI Enterprise Workloads

Digital Realty Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DLR#NYSE">DLR</a>) reported quarterly earnings of $1.67 per share which beat the analyst consensus estimate of $1.63 by 2.45 percent. This is a 0.6 percent increase over earnings of $1.66 per share from the same period last year. The company reported quarterly sales of $1.33 billion which missed the analyst consensus estimate of $1.36 billion by 2.12 percent. This is a 0.59 percent decrease over sales of $1.34 billion the same period last year.

Earnings

Earnings Beats

Earnings Misses

Digital Realty Trust Q1 FFO $1.67 Beats $1.63 Estimate, Sales $1.33B Miss $1.36B Estimate

REXR

Shares of REITs and utilities stocks are trading lower amid a rise in Treasury yields.

CUBE

GLPI

Hannon Armstrong Sustainable Infrastructure Capital

HASI

LAMR

SBAC

VICI

Shares of REITs are trading lower as Treasury yields rise following hotter-than-expected March inflation data.

Digital Realty Trust shares are trading higher after Wells Fargo upgraded the stock from Equal-Weight to Overweight and raised its price target from $135 to $155.

Wells Fargo analyst Eric Luebchow upgrades Digital Realty Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DLR#NYSE">DLR</a>) from Equal-Weight to Overweight and raises the price target from $135 to $155.

Upgrades

Wells Fargo Upgrades Digital Realty Trust to Overweight, Raises Price Target to $155

Wayne Gretzky famously said that you miss 100% of the shots you don't take. But <a href="https://www.benzinga.com/news/21/05/21303010/wayne-gretzky-joining-turner-sports-nhl-coverage-spurns-espn">the hockey GOAT </a>has another saying that can also apply to markets and investing: skate where the puck is going, not where it is now.
AI and semiconductor stocks like NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), Advanced Micro Devices (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) and others have been the hottest stocks on the market throughout the last year amid increased demand for AI services and products. But you may feel like it's too late to buy semiconductor names to cash in on the AI boom.
Luckily, like most investing opportunities, there are ‘pick and shovel' plays or underlying companies that are set to benefit that aren't as overdone or talked about.
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Also Read: <a href="https://www.benzinga.com/markets/equities/24/03/38016310/morgan-stanleys-top-fund-manager-says-this-utility-stock-could-win-big-from-ai-demands">Morgan Stanley&#8217;s Top Fund Manager Says This Utility Stock Could Win Big From AI Demands</a>
This idea was a core theme in this week's episode of &#8220;<a href="https://www.benzinga.com/razreport">The Raz Report</a>&#8221; podcast, a show featuring Benzinga's co-founder Jason Raznick.
Raznick and I sat down and talked about his journey into trading, mistakes he made early on and why it's so important to find the often-overlooked opportunities by analyzing themes and moving where the puck is going, as Gretzky would say.
"I try to look at trends in the market," Raznick said. "The EV market makes sense to me. The Ozempic plays made sense to me&#8230; 9/11, when that happened, the security plays, I was investing in drones before anyone was talking about drones."
Raznick's point is that the derivative plays of emerging trends aren't usually talked about as much among investors and throughout financial media, which can create lower prices and more profit opportunities.
For example, while Nvidia and Super Micro Computer Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) are each up more than 200% in the last year, other companies that could benefit from the AI boom like data infrastructure providers Digital Realty (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DLR#NYSE">DLR</a>) and Equinix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EQIX#NASDAQ">EQIX</a>) are up about 50% and 10% in the last year respectively. <a href="https://www.youtube.com/watch?v=89TIN2twAVg">Click here</a> to check out part one of Raznick's stock series, where he will share tips, trade ideas and more throughout the episodes. 
Now Read: <a href="https://www.benzinga.com/markets/cryptocurrency/24/04/38071383/bitcoin-etfs-traded-111b-in-march-2-new-etfs-could-mean-the-action-gets-even-wilder">Bitcoin ETFs Traded $111B In March: 2 New ETFs Could Mean The Action Gets Even Wilder</a>
Photo: Benzinga

How To Beat The Herd: Finding Stock Opportunities Where Others Aren't Looking

Morgan Stanley analyst Simon Flannery maintains Digital Realty Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DLR#NYSE">DLR</a>) with a Equal-Weight and raises the price target from $100 to $108.

Morgan Stanley Maintains Equal-Weight on Digital Realty Trust, Raises Price Target to $108

Digital Realty Trust's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DLR#NYSE">DLR</a>) short percent of float has fallen 7.68% since its last report. The company recently reported that it has 11.50 million shares sold short, which is 4.33% of all regular shares that are available for trading. Based on its trading volume, it would take traders 5.82 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Digital Realty Trust Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1711557013_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Digital Realty Trust has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Digital Realty Trust's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Digital Realty Trust's peer group average for short interest as a percentage of float is 3.70%, which means the company has more short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Trading Ideas

Looking Into Digital Realty Trust's Recent Short Interest

Evercore ISI Group analyst Irvin Liu maintains Digital Realty Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DLR#NYSE">DLR</a>) with a Outperform and maintains $154 price target.

Evercore ISI Group Maintains Outperform on Digital Realty Trust, Maintains $154 Price Target

Truist Securities analyst Anthony Hau maintains Digital Realty Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DLR#NYSE">DLR</a>) with a Buy and raises the price target from $145 to $158.

Truist Securities Maintains Buy on Digital Realty Trust, Raises Price Target to $158

<h3>Key Takeaways:</h3>
<ul>
<li>GDS is aiming to raise up to $600 million by selling part of its fast-growing global unit that operates data centers in Malaysia and plans to enter Indonesia</li>
<li>The funding would give a small group of global investors a majority of the global operation&rsquo;s stock, potentially paving the way for the unit&rsquo;s spinoff</li>
</ul>
By Doug Young
Will data center operator&nbsp;GDS Holdings Ltd.&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/gds#NASDAQ">GDS</a>) become the next company to split off its global division from its original China business?
That question loomed large as the company confirmed it was in advanced talks to sell a stake in its young global operation to help fund the unit&rsquo;s growth. GDS indicated&nbsp;<a href="https://thebambooworks.com/gds-under-pressure-to-step-up-overseas-expansion-as-china-market-cools/">during its last earnings call</a>&nbsp;in November that it was seeking such investment, with an aim of completing the capital-raising move by March.
So, a Monday Bloomberg report saying Hillhouse Capital, Boyu Capital and CDH Investments were in talks to provide those funds doesn&rsquo;t come as a huge surprise. GDS&nbsp;<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0311/2024031101009.pdf">confirmed that</a>&nbsp;it was in talks with &ldquo;several private equity investors regarding a potential transaction with respect to its international business,&rdquo; though it didn&rsquo;t disclose any names.
The interest by this A-list of regional private equity investors speaks to GDS&rsquo; attraction as both a relatively well-run company, and also to the big potential for artificial intelligence (AI) to spark a major new wave of demand for data centers. Such an investment also makes sense for Chinese private equity firms like Hillhouse, Boyu and CDH, which are increasingly looking for targets outside their home China market where the economy is slowing.
The new investors would provide around $500 million to $600 million in new capital, according to the Bloomberg report. GDS previously indicated it would sell a minority stake in the global operation, so we can probably assume the private equity companies would get between 20% and 35% of the global unit for their new investment.
That&rsquo;s significant, because such investment would make the international unit look increasingly global in terms of its stakeholders, unlike the overall company that is still firmly controlled by its founder, William Huang. GDS is currently 31.8% owned by Singaporean data center operator&nbsp;ST Telemedia Global Data Centres, while Singaporean sovereign wealth fund GIC owns another 3.6%, according to GDC&rsquo;s latest annual report.
Thus, the sale of 20% to 35% of the international division would mean that more than half of that part of the business would be held by the two Singaporean entities plus the new private equity investors. That could easily pave the way for a spinoff of the international business into a separate company, most likely based in Singapore, which would achieve two key goals for GDS.
On the one hand, it would split off the faster-growing global business from the older China business, allowing the global unit to be more highly valued due to its better potential. At the same time, such a move would also sever ties between the global business and China, easing any customer concerns about hosting their data in centers owned by a Chinese company.
Investors seemed to like the bigger story, though they haven&rsquo;t been particularly keen on GDS in general these days. The company&rsquo;s Hong Kong-listed shares rose 18% on Monday after the Bloomberg report came out, and its New York-listed shares followed with a 22% gain the same day. But even after the rally, the stock is still down about 14% so far this year, and has lost more than half of its value over the last 52 weeks.
<h3>Gloomy China Picture</h3>
The contrast between Chinese data center operators and their global peers is quite striking in terms of valuations. GDS currently trades at a price-to-sales (P/S) ratio of just 0.86, while domestic peer&nbsp;VNET&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/vnet#NASDAQ">VNET</a>) trades at an even lower 0.22. By comparison, global leaders&nbsp;Equinix&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/eqix#NASDAQ">EQIX</a>) and&nbsp;Digital Realty&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dlr#NYSE">DLR</a>) trade at P/S ratios of 10 and 8, respectively, which is what you would expect from high-growth companies.
In this case, the big divide owes directly to the difference between the China and global data center markets. China&rsquo;s ultra-competitive data center market is currently in a &ldquo;corrective&rdquo; phase, which is seeing cloud service providers that are one of industry&rsquo;s largest customers dump a sizable amount of their unprofitable business to focus on larger, profitable users.
By comparison, the global cloud market is a bit healthier in terms of the degree of competition. That shows up on the bottom lines of the four companies we&rsquo;ve mentioned, with GDS and VNET both losing money in each of the last three years, while Equinix and Digital Realty have been quite profitable over that time.
So, what exactly does GDS&rsquo; global business consist of that&rsquo;s getting investors so excited? The company&rsquo;s global footprint is all in Southeast Asia, which is a common starting point for Chinese tech companies going global. It began providing services in Singapore in 2021 using data center capacity provided by ST Telemedia, and officially opened its first self-operated facility in the Malaysian state of Johor in last year&rsquo;s third quarter.
The company was set to bring another similar-sized facility into operation by the end of last year, and has acquired land for another facility in Johor. It has also signed a joint venture agreement with Indonesian sovereign wealth fund, INA, to set up facilities in that country.
As it built up the Malaysia operation, the company was set to log about 4 billion yuan ($556 million) in capital spending for its overseas business last year &ndash; more than the 3.5 billion yuan it was planning for China. The company has yet to announce its international capex plans for 2024, though we can probably expect the figure to be as much or higher than last year&rsquo;s 4 billion yuan. Hence the need to raise cash from new investors, who seem quite happy to pump money into that part of GDS&rsquo; business.
The company announced in December that it had secured a 1.27 billion ringgit ($271 million) green financing facility from a group of major Malaysian lenders, so it appears there is plenty of interest from the financial community in helping GDS to fund its global foray. That group of new investors could expand to include stock buyers as well, if and when GDS decides to spin off and separately list its global division.
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

Digital Realty Trust's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DLR#NYSE">DLR</a>) short percent of float has fallen 7.68% since its last report. The company recently reported that it has 11.50 million shares sold short, which is 4.33% of all regular shares that are available for trading. Based on its trading volume, it would take traders 5.82 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Digital Realty Trust Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1709659811_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Digital Realty Trust has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Digital Realty Trust's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Digital Realty Trust's peer group average for short interest as a percentage of float is 3.98%, which means the company has more short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Wells Fargo analyst Eric Luebchow has maintained their bullish stance on DLR stock, giving a Buy rating on May 3. Eric Luebchow has given his Buy r...

Buy Rating Affirmed for Digital Realty on Strategic Equity Raise and Robust Growth Prospects

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Accountability is important when it comes to investing. We all tend to remember our winners and ignore the losers. It can create a bias when discussing whether a strategy is worth following. Or whether you should listen to an online pundit.&nbsp;



There is no end of analysts touting their home runs but glossing over their strikeouts. That&rsquo;s why I wanted to review seven stock picks I made one year ago in May. Although I strongly advocate a minimum ownership period of three to five years for a stock, with a decade or more (<a href="https://investorplace.com/2023/12/life-changing-investments-3-stocks-that-will-set-you-up-for-the-long-haul/">or a lifetime</a> even) being optimal, a one-year review is sufficient to see if we&rsquo;re at least heading in the right direction.



I covered 12 different companies last May. Though not all were exactly recommendations, I also didn&rsquo;t say &ldquo;steer clear&rdquo; either. For example, in my article &ldquo;3 Stocks Warren Buffett Is Betting on Big Time,&rdquo; I noted Paramount Global (NASDAQ:<a href="https://investorplace.com/stock-quotes/para-stock-quote/">PARA</a>) had a <a href="https://investorplace.com/2023/05/3-stocks-warren-buffett-is-betting-big-on-big-time-2/">very weak business model</a> but said perhaps the discount the stock was offering at the time (down 50%) might be enough to attract some investors. Not a ringing endorsement but I&rsquo;ll own that I didn&rsquo;t say avoid this value trap (I did do that the next month, though, in my article &ldquo;3 Stocks to Sell as Companies Prepare for Layoffs&ldquo;).



StockTotal Return % Changevs. S&amp;P 500Devon Energy (NYSE:<a href="https://investorplace.com/stock-quotes/dvn-stock-quote/">DVN</a>)4.2%(21.6%)Chevron (NYSE:<a href="https://investorplace.com/stock-quotes/cvx-stock-quote/">CVX</a>)4.5%(21.3%)Enterprise Products Partners (NYSE:<a href="https://investorplace.com/stock-quotes/epd-stock-quote/">EPD</a>)19.4%(6.4%)MercadoLibre (NASDAQ:<a href="https://investorplace.com/stock-quotes/meli-stock-quote/">MELI</a>)25.7%(0.1%)Digital Realty Trust (NYSE:<a href="https://investorplace.com/stock-quotes/dlr-stock-quote/">DLR</a>)55.3%29.5%Genuine Parts (NYSE:<a href="https://investorplace.com/stock-quotes/gpc-stock-quote/">GPC</a>)(4.0%)(29.8%)Bank of America (NYSE:<a href="https://investorplace.com/stock-quotes/bac-stock-quote/">BAC</a>)35.6%11.5%Occidental Petroleum (NYSE:<a href="https://investorplace.com/stock-quotes/oxy-stock-quote/">OXY</a>)10.4%(13.7%)Paramount Global (NASDAQ:<a href="https://investorplace.com/stock-quotes/para-stock-quote/">PARA</a>)(12.8%)(36.9%)American States Water (NYSE:<a href="https://investorplace.com/stock-quotes/awr-stock-quote/">AWR</a>)(17.0%)(40.7%)PPG Industries (NYSE:<a href="https://investorplace.com/stock-quotes/ppg-stock-quote/">PPG</a>)0.8%(24.5%)Exxon Mobil (NYSE:<a href="https://investorplace.com/stock-quotes/xom-stock-quote/">XOM</a>)13.5%(10.2%)Returns from date of recommendation. Table by author.<h2>My report card</h2>



So how did I do? Not bad! Of the 12 stocks I discussed, nine generated positive returns and just three had negative returns, a 75% success rate. However, maybe you were still better off buying an S&amp;P 500 index fund.



While the average return of my winners was 18.8% compared to my losers negative 11.3% &mdash; giving me an average return of 11.3% &mdash; the broad market index did much better with a 24.9% average return. A better than two-to-one drubbing. Add the sad trombone sound here.



What follows is a look at my four best picks from last year and the three worst. Caveat emptor!



<h2>Digital Realty Trust (DLR)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/08/shutterstock_1696920283-300x169.jpg" alt="A hallway with server racks on either side in a data center"><div>Source: dotshock / Shutterstock</div></div>In retrospect, the case for Digital Realty Trust (NYSE:<a href="https://investorplace.com/stock-quotes/dlr-stock-quote/">DLR</a>) was easy to make. The need for data centers was growing exponentially and the real estate investment trust (REIT) was the biggest owner of data centers in the world with over 300 facilities. Even then it was apparent that artificial intelligence (AI) would be a <a href="https://investorplace.com/2023/05/3-promising-stocks-to-buy-hand-over-fist/">driving force in their adoption</a> and growth.



I quoted DLR CEO Andy Powers as saying, AI &ldquo;could spawn a wave of adoption and a proliferation of use cases and ultimately drive demand for compute infrastructure at scale.&rdquo;



That holds true today. Companies used to keep data close to home, but speed and security necessitate data be dispersed. A hybrid model, where a mix of on-premise and cloud-based storage is optimal, is seen as gaining traction in the very near future. McKinsey &amp; Company forecasts <a href="https://www.forbes.com/sites/forbestechcouncil/2024/01/22/five-trends-driving-the-booming-data-center-economy-in-2024-and-why-investors-are-taking-notice/?sh=2d78f31f6fa5">data center demand</a> will grow by a compounded rate of 10% annually until 2030.



As Digital Realty counts some of the <a href="https://investorplace.com/2024/04/market-crash-counterpunch-3-stocks-to-buy-for-the-coming-downturn/">biggest, most important companies</a> as customers, including Meta Platforms (NASDAQ:<a href="https://investorplace.com/stock-quotes/meta-stock-quote/">META</a>), JPMorgan Chase (NYSE:<a href="https://investorplace.com/stock-quotes/jpm-stock-quote/">JPM</a>), and Oracle (NYSE:<a href="https://investorplace.com/stock-quotes/orcl-stock-quote/">ORCL</a>), it is likely to consume much of that demand.



<h2>Bank of America (BAC)</h2>



<div><img width="300" height="150" src="https://investorplace.com/wp-content/uploads/2017/03/bank-of-america-corp-bac-stock-300x150.jpg" alt="bank of America stock BAC stock"><div>Source: Shutterstock</div></div>If Buffett is buying, we probably should be too. That was essentially the take away of my endorsement of Bank of America (NYSE:<a href="https://investorplace.com/stock-quotes/bac-stock-quote/">BAC</a>). A year ago the Oracle of Omaha had dumped virtually all of his <a href="https://investorplace.com/industries/financial/bank/">bank stocks</a> after the regional banking crisis. However, there was one that he was buying: Bank of America. He had bought nearly 23 million shares, giving him more than 1 billion shares total.



The reason to ride Buffett&rsquo;s coattails was easy. Consumers were fleeing small, less financially stable banks and heading to larger, more mature institutions like BoA. Its assets were at risk in the high interest rate environment we were suffering through, but it was also padding its net interest income from the loans it was making.&nbsp;



I noted the other day interest rates had caused Bank of America&rsquo;s <a href="https://investorplace.com/2024/05/profit-from-the-panic-3-stocks-to-pounce-on-when-they-become-steals/">unrealized losses to balloon</a> to $122.8 billion, but since almost all were in its held-to-maturity portfolio there was no need to move them to the realized column. There was time enough before they matured for the situation to normalize and BoA could perhaps even make a profit from them by the time they were due.



Bank of America is a much more financially sound bank than it once was and was worth holding onto.



<h2>MercadoLibre (MELI)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/08/meli1600-300x169.jpg" alt="MercadoLibre (MELI) homepage on a smartphone"><div>Source: rafapress / Shutterstock.com</div></div>Latin American e-comerce and fintech leader MercadoLibre (NASDAQ:<a href="https://investorplace.com/stock-quotes/meli-stock-quote/">MELI</a>) seems like another easy call when looking back. Because it focused solely on the central and south American markets, it was betting on their economies growing and expanding more than more developed markets.



MercadoLibre was seeing solid growth in gross merchandise volumes and total payment volumes as consumers increasingly became more digitally aware. It has the leading e-commerce platform in the region where growth was soaring by 25% or more and its Mercado Pago fintech platform was seeing a doubling in usage.



I had noted that at first glance the stock <a href="https://investorplace.com/2023/05/3-promising-stocks-to-buy-hand-over-fist/">might not seem cheap</a> since it traded at 56 times earnings estimates but because profits margins were readily inflating it would grow into the premium. With the stock now up 25% from last year, MercadoLibre stock has done just that: it now trades at 34 times estimates. Expect to see a further narrowing of the gap in the future.



<h2>Enterprise Products Partners (EPD)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/08/epd-stock-1-300x169.jpg" alt="A magnifying glass zooms in on the website of Enterprise Product Partners (EPD)"><div>Source: Casimiro PT / Shutterstock.com</div></div>Oil and gas middleman Enterprise Products Partners (NYSE:<a href="https://investorplace.com/stock-quotes/epd-stock-quote/">EPD</a>) is still an easy stock to recommend but one that carries an asterisk. The master limited partnership (MLP) owns and operates an expansive network of pipelines and storage facilities across the country. It has a great business model that ensures it is profitable.



Enterprise Products operates under long-term contracts with its customers that contain take-or-pay clauses. That means customers pay for the capacity of its transmission lines or its storage tanks and whether or not they are actually used, the industry middleman still gets paid. So it doesn&rsquo;t matter what the price of oil or gas is today, Enterprise Products Partners still gets paid.



The one wrinkle, of course, is that EPD is structured as an MLP. Because MLPs are required by law to distribute 90% or more of their profits to investors as dividends, they introduce more complicated tax considerations. I&rsquo;ve noted an investor may not want to own an MLP in a <a href="https://investorplace.com/2024/04/from-spare-change-to-stock-market-gains-3-stocks-to-buy-with-your-last-10/">normally tax-deferred individual retirement account</a> because you could end up owing taxes. It might not be an investment for everyone, but it is potentially lucrative for those who can or do buy.



<h2>Genuine Parts (GPC)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/04/gpc1600-300x169.jpg" alt="Hands holding a smartphone with the Genuine Parts (GPC) logo displayed."><div>Source: Piotr Swat / Shutterstock.com</div></div>Okay, I&rsquo;ll say it: Genuine Parts (NYSE:<a href="https://investorplace.com/stock-quotes/gpc-stock-quote/">GPC</a>) should be in my win column. The owner of the NAPA Auto Parts chain of retail stores ought to benefit more from the ongoing economic conditions ravaging consumers. Rising inflation and high interest rates have taken a toll on both new and used car sales. While both have come down from record levels, they remain well above historical trends.



That would bode well for aftermarket auto parts companies like Genuine Parts. Drivers will keep their existing vehicles operating longer to keep from having to buy a new one. So although interest rates kept consumers from financing new car purchases, inflation was also hitting them in the pocketbook. They just curtailed their spending. It&rsquo;s a situation that is playing out across many industries now as the Federal Reserve&rsquo;s higher-for-longer policies take their toll.



What eases the pain of Genuine Part&rsquo;s softness is its dividend, which it has <a href="https://investorplace.com/2024/03/nasdaq-crash-prep-3-stocks-you-cant-afford-not-to-own/">increased for over 50 years</a>. The auto parts retailer is a Dividend King whose payout yields 2.5% annually.



<h2>Paramount Global (PARA)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/01/para1600-300x169.png" alt="In this photo illustration, the Paramount Global (PARA) logo is displayed on a smartphone screen"><div>Source: rafapress / Shutterstock.com</div></div>As noted above, movie studio Paramount Global was in sorry shape such that even Warren Buffett didn&rsquo;t like the company. Especially after the company slashed its dividend from 24 cents to 5 cents, a move Buffett called &ldquo;not good news,&rdquo; he was <a href="https://investorplace.com/2023/11/wall-street-predicts-these-3-warren-buffett-stocks-will-soar-88-to-242/">resigned to see what transpired</a> with the stock.



Shares bounced 27% off their lows in recent weeks as the movie studio negotiates a sale of the company. It&rsquo;s complicated though, because Shari Redstone owns a controlling interest. Her objectives are not necessarily the same as the rest of the shareholders. She is trying to merge Paramount with Hollywood studio Skydance in an exclusive arrangement but the board said she should have entertained the offer from private equity firm Apollo Global Management, which is working with Sony Pictures to acquire the company.&nbsp;



There will be more negotiations for the movie and streaming company that does own some valuable assets. And it may come down to Paramount Global eventually becoming someone else&rsquo;s problem out of the limelight of Wall Street. It won&rsquo;t be Buffett&rsquo;s though. He <a href="https://www.hollywoodreporter.com/business/business-news/warren-buffett-sells-paramount-stock-huge-loss-1235831979/">told investors</a> at Berkshire Hathaway&lsquo;s (NYSE:<a href="https://investorplace.com/stock-quotes/brk-a-stock-quote/">BRK-A</a>)(NYSE:<a href="https://investorplace.com/stock-quotes/brk-b-stock-quote/">BRK-B</a>) annual meeting, &ldquo;We sold it all, and we lost quite a bit of money.&rdquo;



<h2>American States Water (AWR)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/03/water_3_1600-300x169.jpg" alt="A zoomed in photo of a drop of water hitting a container of water's surface."><div>Source: Sambulov Yevgeniy/ShutterStock.com</div></div>Utilities such as American States Water (NYSE:<a href="https://investorplace.com/stock-quotes/awr-stock-quote/">AWR</a>) have been particularly hard hit by the Federal Reserve&rsquo;s monetary policies. Because they are heavily regulated and required to maintain, upgrade and repair their facilities, high interest rates inflates their borrowing costs. At the same time, they are subject to the whims of local utility boards in whether they win rate increases.



Yet that&rsquo;s also one of their more attractive aspects too. They are a known quantity with a reliable business model that generates a substantial revenue stream. They use that money to pay handsome dividends to shareholders. American States Water has been among the best, paying a dividend for 87 consecutive years. It has increased the payout for <a href="https://www.aswater.com/news-releases/news-release-details/american-states-water-company-announces-regular-common-67">69 straight years</a>.&nbsp;



Unfortunately, the macroeconomic environment weighs more heavily on its stock price. And because of profligate spending in Washington, inflation is remaining intransigent causing the Fed further delay any hoped-for rate cuts. Inflation is heading in the wrong direction again. Although chairman Jerome Powell says new rate hikes are &ldquo;unlikely,&rdquo; that doesn&rsquo;t mean they are not possible.



It looked a lot better for AWR when there was talk of three, four, or even <a href="https://investorplace.com/2024/04/inflation-is-not-going-away-2-stocks-that-will-thrive-1-that-will-dive/">six possible rate cuts</a>. Now, cuts seem off the table for most of the year and increases could be back on the table. Expect a period of underperformance for AWR stock to continue, though that long-term mindset I said was appropriate earlier still makes this a stock to consider.



On the date of publication, Rich Duprey held a LONG position in CVX, PPG, XOM, GPC and AWR stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com <a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a>.
<div>Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L&rsquo;Express, and numerous other news outlets.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/05/revisiting-my-7-stock-picks-from-last-year-how-did-i-do/">Revisiting My 7 Stock Picks From Last Year: How Did I Do?</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

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Digital Realty drops 3%, prices $1.47B equity

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
One of the best ways to generate passive income is with some of the most undervalued real estate investment trusts (REITs). Not only do these undervalued REIT stocks offer attractive growth, and diversification relative to other assets, but they also have attractive yields.



Look at&nbsp;Realty Income&nbsp;(NYSE:<a href="https://investorplace.com/stock-quotes/o-stock-quote/">O</a>), for example. Also known as&nbsp;<a href="https://www.realtyincome.com/">The Monthly Dividend Company</a>, it currently yields 5.57%, and just announced a&nbsp;dividend of&nbsp;$0.257&nbsp;per share ($3.084&nbsp;annualized) and is payable on&nbsp;May 15, 2024&nbsp;to stockholders of record as of&nbsp;May 1, 2024.&nbsp;



With that one REIT, your money just made you more money. And all you had to do was hold the stock.&nbsp;Making undervalued REIT stocks even more attractive, they&rsquo;re interest-rate sensitive, which means they tend to do better when interest rates pull back.&nbsp;



With higher hopes for interest rate cuts from the Federal Reserve, we could soon see greater interest for REIT investments.



With that, here are some of the most undervalued REIT stocks you may want to own today.



<h2>Agree Realty (ADC)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/12/shutterstock_1392565235-300x169.png" alt="Agree Realty Corporation (ADC) logo visible on display screen."><div>Source: Pavel Kapysh / Shutterstock.com</div></div>With a yield of 5.12%, rebounding shares of&nbsp;Agree Realty&nbsp;(NYSE:<a href="https://investorplace.com/stock-quotes/adc-stock-quote/">ADC</a>) are attractive. Last trading at $58.56, I&rsquo;d like to see ADC retest $66 initially. In addition, the omni-channel retail REIT just raised its&nbsp;<a href="https://www.prnewswire.com/news-releases/agree-realty-declares-increased-monthly-common-dividend-302110408.html#:~:text=Share%20this%20article&amp;text=ROYAL%20OAK%2C%20Mich.%2C%20April,month%2Dover%2Dmonth%20increase.">monthly dividend to $0.25</a>, a 12% month over month increase. It&rsquo;s also payable on May 14 to shareholders of record as of April 30.



Better, the REIT just reported funds from operations (FFO) of $1.01, which beat by a penny. Revenue of $149.45 million, up 18% year over year, exceeding expectations by $1.09 million. As of March 31, ADC owned 2,161 properties in 49 states, with about 44.9 million square feet of leasable area.



According to Agree Realty&rsquo;s CEO, <a href="https://www.prnewswire.com/news-releases/agree-realty-corporation-reports-first-quarter-2024-results-302125138.html">Joey Agree</a>, &ldquo;With total liquidity of over $920 million, more than $385 million of hedged capital and no material debt maturities until 2028, we enjoy ample balance sheet flexibility to execute our disciplined operating strategy. Our best-in-class portfolio and fortress balance sheet provide us with conviction that we can achieve 2024 AFFO per share between $4.10 and $4.13 without deviating from our core strategy or moving up the risk curve.&rdquo;



<h2>Iron Mountain (IRM)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/irm1600-300x169.jpg" alt="Iron Mountain (IRM) logo on truck"><div>Source: Shutterstock</div></div>We can also look at&nbsp;Iron Mountain&nbsp;(NYSE:<a href="https://investorplace.com/stock-quotes/irm-stock-quote/">IRM</a>), which currently yields 3.42%.



The REIT is&nbsp;aggressively expanding its <a href="https://seekingalpha.com/article/4559979-iron-mountain-aggressively-expanding-data-center-capacity">data center capacity</a>&nbsp;to meet the demand of the generative artificial intelligence (AI) boom. This makes it attractive, especially on a recent slight pullback. Making it even more attractive,&nbsp;IRM just declared a <a href="https://seekingalpha.com/news/4098570-iron-mountain-declares-0065-dividend">65-cent dividend</a>&nbsp;that&rsquo;s payable on July 5 to shareholders of record as of June 17.



Earnings have also been solid. In its first quarter, funds from operations came in at $1.10, which beat by 18 cents. Revenue of $1.48 billion, up 12% year over year, beat by $30 million.&nbsp;



Analysts at&nbsp;Wells Fargo recently <a href="https://thefly.com/news.php?symbol=IRM">raised their price target</a>&nbsp;on IRM to $90 from $80, with an overweight rating.&nbsp;&ldquo;The firm believes Iron Mountain can sustain 10%-12% total shareholder return in the coming years, toward the high end of REITs,&rdquo; added TheFly.com. <a href="https://thefly.com/news.php?symbol=IRM%27">Barclays also raised its price target</a>&nbsp;on IRM to $91, with an overweight rating.



<h2>Data Center &amp; Digital Infrastructure ETF (DTCR)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/reits1600c-300x169.jpg" alt="tiny house figures atop letter blocks spelling out REIT, representing reits to buy. stock predictions. best REITs"><div>Source: Shutterstock</div></div>Or, if you want to diversify with data center REITs, there&rsquo;s the&nbsp;Data Center &amp; Digital Infrastructure ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DTCR#NASDAQ">DTCR</a>).



DTCR last traded at $14.35 a share. While this ETF only yields about 1.11%, I favor it because of its diversification with top data center stocks set for substantial growth in a digital world. With an expense ratio of 0.50%, the ETF holds 25 related stocks, including,&nbsp;Equinix&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EQIX#NASDAQ">EQIX</a>),&nbsp;American Tower&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMT#NYSE">AMT</a>),&nbsp;Crown Castle&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCI#NYSE">CCI</a>),&nbsp;Digital Realty Trust&nbsp;(NYSE:<a href="https://investorplace.com/stock-quotes/dlr-stock-quote/">DLR</a>), and&nbsp;Digital Bridge&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DBRG#NYSE">DBRG</a>).&nbsp;



All of which should benefit with global data center investments &ldquo;expected to increase from $321bn in 2022 to $410bn in 2025 to support the growth of 5G, smart grids, and other forms of tech-based infrastructure,&rdquo;&nbsp;<a href="https://www.globalxetfs.com/funds/dtcr/#:~:text=Global%20data%20center%20investments%20are,forms%20of%20tech%2Dbased%20infrastructure.">says Global X ETFs</a>.



Since bottoming out at around $13.80, it&rsquo;s now up to $14.34. From here, with data center growth only expected to explode, I&rsquo;d like to see it closer to $25 near term.



On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines.</a>
<div>Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/05/the-3-most-undervalued-reits-to-buy-in-may-2024/">The 3 Most Undervalued REITs to Buy in May 2024</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

The 3 Most Undervalued REITs to Buy in May 2024

Digital Realty Trust declares $1.22 dividend

Analysts have been eager to weigh in on the Real Estate sector with new ratings on Federal Realty (FRT – Research Report) and Digital Realty (DLR –...

Analysts Have Conflicting Sentiments on These Real Estate Companies: Federal Realty (FRT) and Digital Realty (DLR)

Tsz Wang, an analyst from DBS, maintained the Buy rating on Digital Realty (DLR – Research Report). The associated price target remains the same wi...

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Real estate stocks continue to outperform broader markets with increased chances of rate cut

ARCC

BBDC

BBRE

BXSL

CBRE

CSGP

DBRG

DFAR

DTCR

FREL

GBDC

HTGC

INDS

INVH

JPRE

KBWY

MAIN

MELI

MORT

NETL

NURE

OBDC

PARA

PPTY

RIET

ROOF

RSPR

SCHH

SPRE

SRET

SRVR

TCPC

TSLX

USRT

XLRE

Press Releases

Digital Realty and Mitsubishi Corporation Form Data Center Development Joint Venture

Digital Realty Schedules First Quarter 2024 Earnings Release and Conference Call

Digital Realty to Host NVIDIA-Powered AI Supercomputer in Denmark

Digital Realty and Schneider Electric Partner to Undertake Data Center Circular Economy Initiative

Digital Realty Appoints Susan Swanezy to Board of Directors

Digital Realty and Oracle Further Strengthen Collaboration to Enable the Next Generation of Cloud Native and AI Enterprise Workloads

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Digital Realty Trust Stock (NYSE:DLR), Short Interest Report

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