Tech Selloff Trips Up Data Center Stocks
According to The Wall Street Journal:
Data centers catering to heavyweight tech companies have been one of real estate’s star performers, but their rout during October’s tech selloff is raising questions about whether these usually defensive shares will remain volatile.
The average three year annualized total returns for data center REITs was 22% at the end of September, compared to the 8% recorded for the MSCI US REIT Index, according to Green Street Advisors, a real estate research firm.
“It felt like a ‘throw the baby out with the bathwater’ type of movement,” said Lukas Hartwich, a senior analyst at Green Street Advisors, referring to the decline in data center shares.