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Equinix (EQIX) Wraps Up $175M Buyout of 3 Mexican Data Centers
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Equinix, Inc. (EQIX - Free Report) recently wrapped up the previously-announced acquisition of three data centers from Axtel S.A.B. de C.V. that cater the Mexico City and Monterrey metro areas of Mexico. The company has shelled out $175 million for this buyout, making it one of the largest network-neutral data center operators in Mexico.
In fact, the three new data centers will add roughly 115,000 square feet of colocation space to Equinix’s International Business Exchange (IBX) data-center portfolio.
All three facilities are carrier-neutral data centers. The two data centers serving the Mexico City metro region are strategically situated in Querétaro, while the third one is located in the Monterrey area.
The first facility spans 110,000 square feet of gross space and offers 37,000 square feet of colocation space. It is also the first Latin-American data center with an energy cogeneration system. The second facility is an 80,000-gross-square-foot data center, offering 6,000 square feet of colocation space. This facility has the ability to expand and offer up to 60,000 square feet of colocation space. Both facilities offer multiple diverse fiber entry points and include five network service providers presently operating in each data center.
The third property in the Monterrey area offers 25,000 square feet of gross data-center space and 12,500 square feet of colocation space featuring 10 network service providers. This facility is a well- connected data center, offering a key inter-connection gateway between the United States and Mexico.
In addition, the facilities generated nearly $21 million of revenues in 2018 and the EBITDA margin profile is anticipated to be accretive to Equinix’s business.
Notably, Latin America’s inter-connection bandwidth is projected to witness a 63% compound annual growth rate (CAGR) by 2022. To benefit from this, the company has been strengthening its footprint and has invested more than $500 million in the region. Such strategic moves bode well for long-term growth.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have rallied 3.9%, as against the real estate market’s decline of 1.2%.
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Boston Properties, Inc. (BXP - Free Report) currently carries a Zacks Rank of 2 (Buy) and has gained 13% in the past year. The company’s funds from operation (FFO) per share estimates for 2020 have been revised marginally upward to $7.53 in two months’ time. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CyrusOne Inc’s Zacks Consensus Estimate for the current-year FFO per share moved slightly north to $3.92 in the past two months. It carries a Zacks Rank of 2, at present. Moreover, the stock has rallied 25.7% over the trailing 12-month period.
Lamar Advertising Company’s (LAMR - Free Report) Zacks Consensus Estimate for the ongoing year’s FFO per share moved marginally upward to $6.15 over the past 60 days. Currently, it carries a Zacks Rank of 2. Also, it has appreciated 22.2% in the past year.
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Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Equinix (EQIX) Wraps Up $175M Buyout of 3 Mexican Data Centers
Equinix, Inc. (EQIX - Free Report) recently wrapped up the previously-announced acquisition of three data centers from Axtel S.A.B. de C.V. that cater the Mexico City and Monterrey metro areas of Mexico. The company has shelled out $175 million for this buyout, making it one of the largest network-neutral data center operators in Mexico.
In fact, the three new data centers will add roughly 115,000 square feet of colocation space to Equinix’s International Business Exchange (IBX) data-center portfolio.
All three facilities are carrier-neutral data centers. The two data centers serving the Mexico City metro region are strategically situated in Querétaro, while the third one is located in the Monterrey area.
The first facility spans 110,000 square feet of gross space and offers 37,000 square feet of colocation space. It is also the first Latin-American data center with an energy cogeneration system. The second facility is an 80,000-gross-square-foot data center, offering 6,000 square feet of colocation space. This facility has the ability to expand and offer up to 60,000 square feet of colocation space. Both facilities offer multiple diverse fiber entry points and include five network service providers presently operating in each data center.
The third property in the Monterrey area offers 25,000 square feet of gross data-center space and 12,500 square feet of colocation space featuring 10 network service providers. This facility is a well- connected data center, offering a key inter-connection gateway between the United States and Mexico.
In addition, the facilities generated nearly $21 million of revenues in 2018 and the EBITDA margin profile is anticipated to be accretive to Equinix’s business.
Notably, Latin America’s inter-connection bandwidth is projected to witness a 63% compound annual growth rate (CAGR) by 2022. To benefit from this, the company has been strengthening its footprint and has invested more than $500 million in the region. Such strategic moves bode well for long-term growth.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have rallied 3.9%, as against the real estate market’s decline of 1.2%.
Stocks to Consider
Boston Properties, Inc. (BXP - Free Report) currently carries a Zacks Rank of 2 (Buy) and has gained 13% in the past year. The company’s funds from operation (FFO) per share estimates for 2020 have been revised marginally upward to $7.53 in two months’ time. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CyrusOne Inc’s Zacks Consensus Estimate for the current-year FFO per share moved slightly north to $3.92 in the past two months. It carries a Zacks Rank of 2, at present. Moreover, the stock has rallied 25.7% over the trailing 12-month period.
Lamar Advertising Company’s (LAMR - Free Report) Zacks Consensus Estimate for the ongoing year’s FFO per share moved marginally upward to $6.15 over the past 60 days. Currently, it carries a Zacks Rank of 2. Also, it has appreciated 22.2% in the past year.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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