Real Estate Sector Ideas

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CoreSite Realty --- >>> 5 Small-Cap Growth-Oriented Dividend Stocks



By Meena Krishnamsetty

May 28, 2013

Tickers: COR, INGR, HWCC, MPW, WDR



http://beta.fool.com/insidermonkey/2013/05/28/5-small-cap-growth-oriented-dividend-stocks/35273/?source=eogyholnk0000001



CoreSite Realty (NYSE: COR), a provider of network-dense data center campuses and the CoreSite Mesh, which enable interconnected communities of service providers and enterprises, has achieved a total return of 54% over the past 12 months. This REIT is currently yielding 3% on a payout ratio of 61% of its 2013 FFO, based on the guidance midpoint. The company’s dividend has increased nearly 108%, cumulatively, since its initiation in December 2010. The company says it expects to continue increasing the dividend amount to that “required by REIT status and to retain excess cash flow for investment into development opportunities.”

Favorably positioned in a high demand-low supply market segment, CoreSite operates 14 data centers (1.2 million square feet) and has three more data centers under development. This year, CoreSite is expanding capacity by 311,000 net rentable square feet with a total capital investment of $195 million. In the first quarter, CoreSite grew its FFO per diluted share by 13.9% over the first quarter a year earlier. The company is expected to deliver FFO growth of 16.1% this year and 18.9% next year, according to a consensus of analysts’ FFO estimates. CoreSite is trading at 20x its 2013 FFO estimate and 16.8x its 2014 FFO estimate. <<<


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>>> CoreSite Realty Corporation engages in the ownership, acquisition, construction, and management of data centers. The data centers are specialized and secure buildings that house networking, storage, and communications technology infrastructure, including servers, storage devices, switches, routers, and fiber optic transmission equipment. These buildings provide the power, cooling, and network connectivity to operate this mission-critical equipment. The company?s data centers are located in Los Angeles, the San Francisco Bay and northern Virginia areas, Chicago, Boston, New York City, and Miami. CoreSite Realty Corporation serves telecommunications carriers, content and media entertainment providers, cloud providers, enterprise customers, financial and educational institutions, and government agencies. As of December 31, 2011, its property portfolio included 12 operating data center facilities and 1 development site. The company is qualified as a real estate investment trust (REIT) under the Internal Revenue Code. As a REIT, it would not be subject to federal income taxes, if it distributes at least 90% of its REIT taxable income to its stockholders. The company was founded in 2010 and is headquartered in Denver, Colorado. <<<