Today we see the start of trading of CoreSite (NYSE:COR, news, filings), which becomes the third public datacenter REIT. The others of course are Digital Realty Trust (NYSE:DLR, news, filings) and Dupont Fabros Technology (NYSE:DFT, news, filings), and all three are in the business of buying property, developing them into datacenters, and leasing them wholesale to the sector. In CoreSite's case, it owns and operates 11 such facilities thus far, adding up to around 2 million square feet of space and generating $113M in revenues for 2009.
Coresite's IPO has been priced at $16, in the middle of the expected range, and therefore the company should raise about $270M or so today. They will use the cash partly to pay off existing debt and partly to fund expansions. CoreSite's executive team will ring the opening bell today in celebration - never really understood that tradition, but anyway. REITs don't fluctuate that much, and the market likes datacenters, so I expect that this IPO won't give the media any excuses to pounce.
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