Can REITs Turn a Commodity Into a High-Return Asset?

Can REITs Turn a Commodity Into a High-Return Asset?

Ultimately, the single biggest advantage any REIT can have is in its ability to raise capital for investing. The REIT with the lowest cost of capital can win deals on accretive terms, resulting in dividend growth as they deploy more capital to buy and lease out property on behalf of investors. But is there more to the story? Can data-center REITs drive incremental value for their customers and investors alike from their operational abilities, rather than their financing power?

In this episode of Industry Focus: Financials, join Michael Douglass and Jordan Wathen as they discuss at least one way data-center REITs purport to create value by curating a list of clientele within the same data center, and charging outsize fees to link clients' servers to one another.

A full transcript follows the video.

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Source: Fool.com