Digital Realty Trust
Digital Realty is a niche REIT that owns datacenters, internet gateways, and offices for technology firms. That positioning puts DLR in the unique position to benefit from the quickly increasing demand for specialized datacenter facilities. As cloud computing becomes less of a buzzword and more of a part of consumers' daily lives, datacenters are becoming more in-demand -- and Digital Realty is one of the few firms that can offer meaningful capacity right now.
Because Digital Realty's properties require customization to meet tenants' technical needs, switching costs are high -- so even though leases tend to be for shorter-terms than at many traditional peers, retention remains high as a result. This firm's 4.2% dividend yield, coupled with a strong macro argument for growth, makes it a solid name to watch in 2012.Digital Realty also shows up in Capital Growth Management's portfolio.