Data center REITs flourish in third quarter

Five major data center REITs showed strong movement in the market during the third quarter of the year, according to Data Center Knowledge.

Among these were Digital Realty, which closed in on a $8.4 billion merger with Inerxion; Equinix, which grew its quarterly revenue to $1.397 billion, a 9 percent year-over-year increase; and CyrusOne, which recorded $23 million in annualized generally accepted accounting principles (GAAP) revenue signed with enterprise customers.

In addition, CoreSite hit new and expansion sales of $14.4 million of annualized GAAP rent for the quarter, including 34 new logos. Sales also included $4.5 million of core retail colocation sales and $9.9 million of scale leasing. Additionally, QTS Realty signed a 12-megawatt lease to expand its metro-Atlanta campus.

Data Center Knowledge attributes the REITs’ success to the fact that their solutions were offered across multiple markets, they all had a solid operating track record and they maintained strong balance sheets to compete for new corporate logos.

To read more about the third quarter results of each REIT, click here.