Data center, colocation and interconnection solutions provider Digital Realty has opened its third data center in Singapore. Named SIN12, this is its largest data center in Singapore.
Digital Realty (DLR) Chief Executive Officer, A. William Stein, said, “The opening of our third data center is a major milestone on our PlatformDIGITAL roadmap and underscores our long-term commitment to support the country’s digital economy.”
Stein added, “There is a growing need for a combination of open interconnection and next-generation collocation that will reduce the complexity of digital transformation. Expanding our footprint in Singapore will enable us to better help our customers enhance their digital transformation efforts and scale their digital business models regionally as well as globally.” (See Digital Realty stock analysis on TipRanks)
PlatformDIGITAL is Digital Realty’s global data center platform. It helps customers in scaling digital business and managing data gravity requirements by providing Pervasive Datacenter Architecture (PDx) solution methodology.
The company’s data centers are located at key metros such as Singapore, Hong Kong, Tokyo, Seoul, Melbourne and Sydney. Furthermore, it has new development projects underway in the Asia pacific (APAC) region in 2021.
Last month, Raymond James analyst Frank Louthan reiterated a Buy rating on the stock but did not assign any price target.
Commenting on the sale of legacy European data center assets to Ascendas Reit, Louthan said, “The assets are expected to generate ~$43.5 million in annualized 2021 NOI, and we believe this equates to ~17x 2021E EBITDA. Proceeds will be utilized primarily for debt repayment, a positive for shareholders as the YE’20 leverage of 6x was approaching the high end of DLR’s target range.”
Turning to the rest of the Street, the stock has a Moderate Buy consensus rating alongside an average analyst price target of $158.43 (8.7% upside potential), based on 6 Buys and 3 Holds.
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