Bernstein: The strength of data center REITs is underestimated by indicators

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