Bernstein: The strengths of data center REITs are underestimated by key indicators

Odaily Planet Daily News Bernstein analysts said in a research report that the strengths of data center real estate investment trusts (REITs) are often underestimated. This is because traditional valuation metrics often fail to reflect the long-term value of capital-intensive assets designed to generate cash flow over decades. Two sector-specific indicators, adjusted operating cash flow and development returns, more accurately assess the sector's growth potential. A key advantage is the sector's ability to reinvest capital in expanding data center computing power while maintaining shareholder distributions. Overall, Bernstein remains optimistic about the prospects of data center REITs. (Jinshi)