Digital Realty Trust
Last up is real estate investment trust Digital Realty Trust (DLR). With a short interest ratio of 15.7, it would take more than three weeks of buying pressure for short sellers to cover their bets against the firm. That makes DLR the most heavily-shorted name on our list today.
Digital Realty Trust is a REIT with a technology niche. It owns datacenters, Internet gateways and manufacturing facilities, nearly 100 properties comprising 16.8 square feet of leasable space in all. Because demand for datacenter capacity continues to grow (as technology like cloud computing becomes more and more popular), DLR has an added demand factor that most other landlord REITs simply don't. But don't think of this stock like a play on real estate. At its core, it's an income-generation tool.DLR enters into long-term triple-net leases with tenants, an arrangement that takes most of the risks off of DLR's balance sheet and puts the onus on tenants instead. The result is a predictable income stream and a hefty 4.78% dividend yield right now. And because dividends are like kryptonite for short sellers, shorts need a higher level of conviction to hang onto a name that's paying out gobs of cash. That gives DLR significant squeeze potential this quarter. To see these short squeezes in action, check out this week's Short Squeezes portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
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