Varun Anand Switch SWCH-N PAST TOP PICK Dec 01, 2021

A pure-play data centre. They have campuses across the US. It trades near the lower end of the group, but has the highest AFFO growth rates. This disconnect will fade as SWCH continues to execute. The CEO has patented a lot of tech used in their data centres to improve performance will undercutting its peers in cost. Expect an update on their edge computing which may be a growth platform for them. They raised the dividend this year and he expects it to grow more. (Analysts’ price target is $21.32)

Trades cheaper because it's less liquid, not classified as a REIT, and has some concentration risk with its Nevada campus. Well positioned, low leverage. Has expanded geographically. Because it's not a REIT, it's more flexible to pursue opportunities. Strong start this year, but can still narrow the valuation gap.

Which of the two is better. They are in the digital realty space. DLR is difficult to grow because of the size. Of the two he would prefer SWCH.

Further upside. Best in class in terms of AFFO, EBITDA, and revenue. Pending REIT conversion, which should happen in early 2023, and will broaden the investor base. Lots of proprietary technology. Trades at a discount to the group. Downside protection, as a lot of capital is chasing quality names like this. Yield is 0.79%. (Analysts’ price target is $30.15)

DBRG bought them Congratulations...but let's move on.