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QTS Realty Trust At The Intersection Of Real Estate And Technology

QTS Realty Trust NYSE:QTS, Digital Realty Trust, Inc. NYSE:DLR - QTS Realty Trust At The Intersection Of Real Estate And Technology

Data center REITs sit squarely at the intersection of real estate and technology.

On August 11, QTS Realty Trust Inc QTS 2.03% Chief Investment Officer Jeff Berson presented at the annual Oppenheimer Technology, Internet & Communications conference.

Berson explained how he believes a growing number of customers are now looking for hybrid data-center/cloud solutions, often driven by the need for data security and legal compliance.

This security and compliance shift also includes colocation, which QTS often refers to as "the engine which drives the business."

Tale Of The Tape - QTS vs Peers Since IPO

During the same period, the MSCI REIT Index (RMZ) gained 20.7 percent, which underscores the data center REIT sector outperformance vs. the broader REIT sector.

Related Link: Data Center REIT Digital Realty Explains How Telx M&A Will Add Value

Industry pioneer Digital Realty Trust, Inc. DLR 0.49% has recently shifted gears to beef up its colocation offerings, with its pending acquisition of Telx, and recent executive suite moves.

Business Model

QTS has a 3C product offering: C1 custom data center (wholesale); C2 colocation; and C3 cloud and managed services.

QTS significantly expanded both its cloud and managed services, and FedRamp efforts, with its recent Carpathia Hosting...