QTS - Cyxtera Technologies: Compelling Value With Secular Tailwinds

• Cyxtera Technologies should be able to grow its Net Asset Value (NAV) by a CAGR of 12.3% over the next five years and currently trades at a 6% discount to NAV.
• The rise of the information age means there are vast amounts of data all of which needs to be stored somewhere, creating secular tailwinds for Data Centers.
• As CYXT increases its occupancy and starts to report positive earnings for tax purposes, I think CYXT will likely convert into a REIT or be acquired by one.
• I estimate that a private sponsor could generate a levered return of 37.9% over the next five years by acquiring CYXT in an LBO.

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