Our group of specialty REITs grew recently when we took a position in Blackstone Digital Infrastructure Trust (BXDC), our first and only data center REIT.
While we have been cautious about data centers in the past because of concerns about their capex requirements amid continuously advancing technology, we like the fact that BXDC is taking fresh capital to build from scratch a portfolio of state-of-the-art, Class A data centers leased under long-term contracts to leading hyperscalers.
While this investment is not without risk, we view it as one of the lowest-risk ways to invest in data centers today. Demand for compute remains much higher than available supply.
You can read our investment thesis by clicking here.
With that, let’s turn now to the recent earnings updates for our specialty REITs.
