In general, real estate investment trusts (REITs) and technology companies share little in common; in fact, for the average investor holding a significant percentage of one’s portfolio in either asset class, diversification would likely take the form of increasing exposure to other inversely-related assets (tech and real estate tend to be much less correlated than other asset classes, generally speaking).
One interesting REIT which focuses on buying and holding the underlying real estate for data centers globally is Equinix (NASDAQ: EQIX). Equinix has been firing on all cylinders, expanding its footprint in a bid to become the premier player in providing investors with exposure to data centers and real estate supporting a technological revolution which has just begun.
Recently, the company made two acquisitions (one in the U.S. market and one in Australia). While many investors may have balked at the initial purchase price Equinix was willing to pay to acquire the assets, a number of analysts have pointed to the fact that the strategic benefit of these bolt-on acquisitions long-term should outweigh any negative short-term sentiment related to the deals.
Any real estate investment trust which places its strategic focus on a sector of the economy with legs to run for decades or centuries is a place
I would encourage truly long-term investors to consider placing some of their hard-earned cash. This is one equity I am considering currently, and will consider buying on any dips moving forward.
Invest wisely, my friends.
