While interest rates are rising, it doesn't mean that savvy investors can't earn positive returns on real estate investment trusts REITs Historically, when the risk-free rate went up dramatically in six time periods, REITs earned positive returns during four of those periods, and out of half of those periods beat the S&P 500.
Tech companies may look to data center REITs for the funding of new properties, with interest rates on the rise and the technology sector down nearly 34% year-to-date.
These 2 data center-focused real estate investment trusts have high yields and plenty of customers to drive future growth.
Iron Mountain Inc IRM is offering a dividend yield of 5.37% or $2.47 per share annually, utilizing quarterly payments, with a stellar track record of increasing its dividends for nine consecutive years. Iron Mountain is a record management service provider that caters to enterprise clients in developed markets.
Iron Mountain has 1,380 facilities and served 225,000 customers in 59 countries as of September 30, 2022.
EQIX is offering a dividend yield of 2.09% or $12.40 per share annually, using quarterly payments, with a track record of increasing its dividends over the past seven years. Equinix is a retail provider of data centers, allowing hundreds of enterprise tenants to house their servers and networking equipment in a colocated environment.
In the second quarter, Equinix saw quarterly revenues increase by 10% on both an as-reported and constant currency basis, giving the firm the distinction of having the longest streak of consecutive revenue growth in the S&P 500, accounting for 78 consecutive quarters.
Equinix owns just less than half of the data centers in 66 markets worldwide, and operates 240 data centers in 2021, according to Equinix.