Why Digital Realty Trust Stock Rose 13% in July
Shares of data center real estate investment trust (REIT) Digital Realty Trust (NYSE: DLR) advanced 13% in July, according to data from S&P Global Market Intelligence. That, however, is just par for the course, with the stock up over 30% through the first seven months of 2020, compared to a 12% decline for the average REIT, using Vanguard Real Estate ETF as a proxy. COVID-19 is a key piece of the puzzle.
The efforts to slow the spread of the coronavirus resulted in the widespread shutting of non-essential businesses and the request that people stay home. Many consumers ended up shifting their buying to the internet, and a lot of people started to work from home.
Unlike most REITs, which own physical properties that people go to for shopping and work, among other things, Digital Realty owns data centers. With people working and shopping from home, its facilities were in high demand. Investors have bid the stock up accordingly, including in the month of July.
Source Fool.com
