12 Best REIT Stocks to Buy Now

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3. Digital Realty Trust, Inc. (NYSE:DLR)

Number of Hedge Fund Holders: 52

Digital Realty Trust, Inc. (NYSE:DLR) is a real estate investment trust that owns, operates, and invests in carrier-neutral data centers. The firm delivers the full spectrum of data center, colocation, and interconnection solutions thereby supporting leading enterprises and service providers.

DLR’s data center platform benefits from the growing global demand from a diversified, high-quality customer base. Secular tailwinds remain strong with digital transformation driving a strong data center demand. The REIT has durable competitive advantages in the form of a global footprint serving the full customer spectrum from enterprise to hyperscale. With embedded internal expertise as one of the world’s largest data center acquirers, developers, owners, and operators, Digital Realty Trust is a promising stock.

UBS analyst John Hodulik expects the REIT’s funds from operations per share to grow 5% in 2025, accelerating to 7% in 2026, and 10% in 2027. The positive outlook was based on robust demand in artificial intelligence and hyperscale, stronger renewal spreads, and higher yields from new developments.

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