In this article, we discuss the top 5 real estate stocks to buy now. If you want to read our detailed analysis of the real estate industry, go directly to Top 10 Real Estate Stocks to Buy Now.
5. Equinix Inc (NASDAQ:EQIX)
Number of Hedge Fund Holders: 40
Forward Dividend Yield as of August 6, 2022: 1.84%
Equinix Inc (NASDAQ:EQIX) was founded in 1998 as a vendor-neutral multitenant data center. The name EQUINIX was coined from the company’s values which are EQUality, Neutrality, and Internet eXchange as they want to provide a secure connection and sharing of data traffic to their customers. EQIX has grown the company since and is now a global digital infrastructure company that interconnects industry-leading organizations in finance, manufacturing, retail, transportation, government, healthcare, and education. They provide more than 2000 network services, more than 3000 cloud, and IT services, more than 450 content and digital media services, and more than 4,700 enterprises. The company has continued to improve its performance for the past 17 years.
According to the company’s first-quarter 2022 report, quarterly revenues climbed by 10% to $1.7 billion compared to the first quarter of 2021. This is the 77th consecutive quarter of revenue growth for the company. They expect to beat the consensus of $1.79 billion and reach $1.81B-$1.83B by the second quarter. The Adjusted Funds for Operations (AFFO) per share increased by 15% to $7.16 per share over the previous quarter. There is also a 16% increase noted for the total AFFO, which is currently at $653 million. Investors were paid a dividend of $3.10 per share this June 15, 2022.
Even with 240 data centers across 30 countries, Equinix continues to expand. It recently announced its expansion plan in Chile, Africa, and Australia. EQIX is also agreed to form a strategic partnership with Entel which will gradually increase the company’s AFFO per share. Five facilities are expected to generate 55 million of annualized revenue and represent a purchase multiple of 23 times the enterprise value (EV) over 2021’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). The current market capitalization of EQIX is $70 billion and remains to be the largest data center REIT in the world.
BMO Capital kept a Market Perform rating for EQIX this May 25 though the price target was lowered to $770 from $825. The analyst called the demand for the company a “defensive” in tougher macro-environments due to increasing costs for power. Insider Monkey reports 40 hedge fund holders for this REIT. The forward dividend yield as of August 6, 2022 is 1.78%.
