Approximately 33% of Digital Realty’s annualized rent is from IT Services, 24% from Telecom Network Providers, 19% from Other Corporate Enterprises, 15% from Financial Services, and 9% from Internet Enterprises.We also like the company’s diversification by customer (top 20 tenants are 44% of annualized rent) and industry, which helps smooth out earnings. Telx is a leading national provider of data center colocation solutions and doubled Digital Realty’s high-margin colocation business, which allows companies to rent partial spaces within a data center.Digital Realty is a direct beneficiary of the rapidly growing usage of data by businesses and consumers alike. Digital Realty Trust stock is up 21% so far this year and pays a 3.1% dividend yield. In Digital Realty’s case, we think the biggest risk is that data centers are overbuilt in anticipation of strong data usage trends.Digital Realty generates about 80% of its rent in North America with the rest from Europe (14%) and Asia (6%). I like the safety of DLR’s dividend, but its valuation has really run up over the last year.DLR’s stock has a dividend yield of 4%, which is below its five-year average dividend yield of 4.9%. This mix accounts for another 20% of the company’s rent.The company is also uniquely positioned to meet the needs of major businesses because of its scale, reputation, and favorable real estate locations in major metropolitan areas. As a result, they typically issue shares and debt. 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. Most of the company’s leases also contain 2-3% annual rental rate increases. The stock also trades at 18 times FFO per share. Thanks for your great work!We generally avoid investing in technology companies because industry trends can unexpectedly and quickly take a turn for the worse. My view this is now about 8%. As long as cheap financing is widely available and industry margins are high, more supply will enter the market. I hold a modest position in DLR and the insightful analysis about it is very helpful to me. Some customers choose to provide the power components used in the data center (e.g. Find the latest Digital Realty Trust, Inc. (DLR) stock quote, history, news and other vital information to help you with your stock trading and investing. Digital Realty Trust, Inc. (DLR.PRC) Stock Quotes - Nasdaq offers stock quotes & market activity data for US and global markets. Having customers such as IBM, Facebook, LinkedIn, and Oracle speak to the quality of Digital Realty’s properties.Digital Realty’s average remaining lease term with customers is 5.8 years, and fewer than 15% of its total leases are set to expire in any of the next five years. Scores of 50 are average, 75 or higher is very good, and 25 or lower is considered weak.COPYRIGHT © 2017 Simply Safe Dividends LLCDigital Realty is a REIT that supports the data center needs of more than 1,600 customers across industries such as financial services, information technology, manufacturing, and more. Digital Realty operates as a real estate investment trust.Digital Realty exceeded second-quarter FactSet consensus revenue and EBITDA estimates, and the firm is already showing signs of the benefit we believe it will get from owning Interxion’s high-quality data center portfolio in Europe, which Digital closed on in March. We think the company can continue generating mid-single digit income growth, which would imply annual total return potential of 8-10% per year.I agree with you DLR is a superb company but currently is a bit over priced. Digital Realty owns and operates over 275 data centers worldwide. It powered through the financial crisis and also scores well for dividend safety and growth.Since REITs pay out such a high amount of their earnings, they have less capital on hand to grow their businesses. As long as customers stay financially healthy to pay their rent obligations, Digital Realty has solid cash flow visibility.After all, Digital Realty cannot control the capital allocation of its competitors.
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