DLR - Digital Realty Trust: Soaring Price Stagnating Fundamentals And Magic
2024-04-17 18:16:07 ET
Summary
- Digital Realty Trust, Inc.'s share price has performed well in the last 12 months, but other core metrics were not so impressive.
- After 5 years of poor growth in Core FFO per share, we're gearing up for another.
- Despite 6 years of the same script with fewer headwinds from interest rates, consensus analyst forecasts indicate that Digital Realty is about to embark on a sudden improvement in Core FFO per.
- I find those Digital Realty Trust estimates to be too optimistic.
Snark alert!
We recently published a big piece on Equinix, Inc. ( EQIX ).
In that article, I determined Hindenburg’s accusations regarding maintenance capital expenditures were mostly on point. I'm not optimistic about EQIX, either, given their high multiple (even before adjusting recurring capital expenditures).
As part of my research, I ran a review of maintenance capital expenditures across several types of equity REITs....
Digital Realty Trust: Soaring Price, Stagnating Fundamentals, And Magic