RBC Datacenter Download
Global review of datacenter financial metrics, M&A, operating and interconnection trends, environmental practices, and market developments by region.
1) Year to date, the RBC Capital Markets Datacenter Index has underperformed the S&P by 1,600 bps and the REIT benchmark (RMZ) by 2,200 bps, driven by broad-based underperformance amongst our coverage stocks. This contrasts with the outperformance posted in 2019 and 2020. 2) Datacenter REITs trade at a 3.6-turn premium to the RMZ on 2022E AFFO, which has narrowed from 2020 levels, and reflects sectorrotation dynamicsrelated to COVID. 3) Operators posting the greatest Net Economic Return (ROIC – WACC) are COR, EQIX, and CONE. 4) Amongst our coverage stocks, 2022E growth-adjusted EBITDA multiples are lowest for GDS, NXT, and CONE, while 2022E growth-adjusted AFFO multiples are lowest at DLR, COR, and EQIX. 5) 2021E growth: We estimate average growth in the mid-to-high single digits for revenues and EBITDA, lowsingle digits for FFO/share growth, and ~6% y/y for capex. 6) The pace of M&A activity remains brisk with a number of transactionsin the Americas, EMEA, and AsiaPac that we describe in greater detail inside this report.
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