American Tower Corporation’s AMT subsidiary and a leading hybrid IT solutions provider — CoreSite — recently acquired a modern, purpose-built data center, known as MI2, encompassing 103,000 square feet, in Doral, FL. The data center is located at 2100 NW 84th Avenue.
The move is part of CoreSite’s ongoing effort to add large-scale, purpose-built capacity and richer connectivity options to its existing markets. Along with the addition of two data centers in Atlanta and one in Orlando earlier this year, the latest acquisition strengthens CoreSite’s Southeastern regional footprint.
CoreSite’s portfolio now includes 28 data centers across 10 markets, 450+ networks, 23 native cloud onramps and 35,000+ interconnections.
The MI2 Miami data center is a freestanding facility in America’s Gateway Park. Moreover, it comes with a 185-mph-gust-rated roof that can withstand a Category 5 hurricane.
Per Juan Font, president and CEO of CoreSite and SVP of U.S. Tower, “Miami serves as a key conduit for businesses to manage and grow operations in both North and South America. This expansion in the CoreSite Miami data center campus will provide the hybrid IT solution enterprises turn to for secure and scalable connectivity to South America from the U.S.”
CoreSite also owns and operates a 43,000-square-foot data center, known as MI1, in downtown Miami. It is located at 2115 NW 22nd Street.
As part of the integration process, CoreSite will be connecting the MI2 data center to its MI1 data center. This will provide enhanced access to a more robust ecosystem to customers besides the fiber providers presently available in the facility.
The expanded data center campus in Miami will accommodate combined square footage of nearly 150,000 and aid global digital transformation for businesses across all industries.
Additionally, customers will be able to leverage CoreSite’s leading interconnection platform — Open Cloud Exchange® — which provides superior connectivity and a robust and interconnected partner ecosystem required to reach new markets, rapidly scale on-demand, reduce total cost of operation and accelerate IT modernization.
It may be noted that American Tower acquired CoreSite in December 2021 for a total consideration of $10.4 billion. Through the buyout, AMT added more than 20 data center facilities and related assets in eight U.S. markets to its portfolio.
This provided American Tower the opportunity to capitalize on CoreSite's highly interconnected data center facilities and critical cloud on-ramps and bank on the robust demand from enterprises, the cloud, network, and IT service providers in major U.S. markets.
Shares of the Zacks Rank #3 (Hold) stock have lost 12.0% in the past six months compared with its industry’s decline of 26.4%.
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Stocks to Consider
Some better-ranked stocks from the REIT sector are SBA Communications SBAC, Extra Space Storage EXR and Xenia Hotels & Resorts XHR, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for SBA Communications’ current-year FFO per share has moved marginally northward in the past month to $12.17.
The Zacks Consensus Estimate for Extra Space Storage’s ongoing year’s FFO per share has been raised marginally upward over the past week to $8.49.
The Zacks Consensus Estimate for Xenia Hotels & Resorts’ 2022 FFO per share has moved 15.2% upward in the past two months to $1.59.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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