Digital Realty: Its Preferred Stocks, Bonds, And My Top Pick For Return To Risk

(8min)

Summary

  • Digital Realty Trust, Inc. boasts a robust financial structure, with 76% equity, low leverage, and excellent asset coverage ratios, ensuring stability and resilience.
  • The company’s credit profile is strong, with an adjusted A1/A2 rating, reflecting high asset quality, secure liquidity, and reliable cash flow generation.
  • Among DLR’s preferred stocks, DLR.PR.L offers the highest stripped yield (6.49%) and superior risk-adjusted value, trading below par and callable anytime.
  • I recommend DLR.PR.L as a buy for income-focused investors seeking attractive yield and strong credit quality within the REIT sector.

Money bag Reit and businessman. Real estate investment trust concept. Company that owns, operates, or finances income-generating real estate.

Andrii Yalanskyi

Co-authored by Strategic Yield.

Today's article is on Digital Realty Trust, Inc. (NYSE:DLR) and its financial instruments, especially its preferred stock (NYSE:DLR.PR.L). Recognized as one of the most stable companies in the REIT sector, we

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This article was written by

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Arbitrage Trader, aka Denislav Iliev has been day trading for 15+ years and leads a team of 40 analysts. They identify mispriced investments in fixed-income and closed-end funds based on simple-to-understand financial logic.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of DLR, DLR.PR.L either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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