Betting on a Real Estate Trust Rebound

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

The U.S. stock market closed the week nearly where it started, as the Trump rally took a breather. The Dow Jones fell 0.37% and the S&P 500 dropped 0.14%, while the NASDAQ eked out a 0.07% gain. The MSCI Emerging Market Index pulled back 0.71%.

The energy sector did rebound over the course of the week, with U.S. Silica Holdings (SLCA) and PDC Energy (PDCE) rising 4.56% and 3.09%, respectively.

This week’s Bull Market Alert recommendation takes you into the world of Real Estate Investment Trusts or REITs, a sector that just recently found its footing in the market, even as a former real estate salesman took the helm of the United States.

Denver, Colorado-based CoreSite Realty Corporation (COR) offers cloud-enabled, high-performance data center campuses. Operating across 17 data centers in eight key North American markets, CoreSite serves a broad range of clients, including telecommunications carriers, media companies, financial and educational institutions, and government agencies.

As the chart below confirms, CoreSite’s stock entered a strong uptrend over the past month.

COR 1-23

CoreSite Realty Corporation (COR) vs. the S&P 500 over the past month.

Here’s why I expect CoreSite to continue its strong recent run.

First, with the growth of cloud computing, the Internet of Things and big data, and an increasing number of companies opting for third-party IT infrastructure, data center Real Estate Investment Trusts (REITs) like CoreSite are booming. CoreSite recently increased the occupancy rate of its data centers to 87.6%, which is near record levels.

Second, CoreSite’s business is growing by leaps and bounds. Total operating revenue for Q3 2016 hit $101.3 million, a 17.2% increase year over year. Funds from operations hit $0.90 per diluted share, representing 21.6% growth year over year. CoreSite also raised its dividend by 50.9% to $3.20 per share, which equates to an annual dividend yield of 4.54%. A fast-growing business that is also throwing off a lot cash is hard to beat.

Third, CoreSite’s senior management is betting big on CoreSite’s own success. President and CEO Paul E. Szurek bought 7,000 shares for $68.92 per share on Dec. 5., lifting his overall holding in the company to 59,561 shares. The stock price has increased by 10.69% since then.

A lot of smart money is also betting on CoreSite. Investment legend Ken Heebner’s Capital Growth Management owned 95,000 shares of CoreSite at the end of the third quarter. Nine successful small-cap strategies I track also are betting on CoreSite’s success.

So buy CoreSite Realty Corporation (COR) at market today and place your stop at $76.00.

The options for this position are too illiquid to recommend.

Portfolio Update

Click here to view the Portfolio Update table.


Nicholas Vardy
Nicholas A. Vardy

Like This Article?
Now Get Our FREE Special Report:
Alternative Investing: Investing in Timber

Stock Investor editor Paul Dykewicz reveals why investing in timber may be one of the best long-term portfolio strategies you'll find today.

Get Access to the Report, 100% FREE

previous article

WASHINGTON -- President Donald Trump’s inaugural speech, following his oath of office Friday, focused on policies that would be positive for the oil and energy industries by fueling economic growth, creating jobs and championing American interests. The effect likely would be to boost demand for crude oil, which rose in price more than 2% on Inauguration Day, with part of the gain occurring after his early afternoon remarks. Investors may start to warm up to

Related Posts


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Profits Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • Intelligence Report
  • Bullseye Stock Trader

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Technical Traders Alert
  • Success Trading Group

Used by financial advisors and individual investors all over the world, is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor