Covered, but flat — income without growth. A 2.83% yield on a $1.22 quarterly dividend is covered — $4.88 a year against $7.39 of 2025 core FFO, about a 66% payout, with 2026 core FFO guided to $7.90–$8.00 — but the dividend has not risen since early 2022. The House grades that as a caution: the check is safe, the compounding is paused while the company funds its data-center build-out.
Key risk: Development and power costs — a heavy data-center build-out funded ahead of rents, plus higher interest costs, is exactly what has kept the dividend flat since 2022.
Changes if: The dividend resumes rising, or core FFO guidance slips toward the $4.88 payout. Either direction moves this card: growth restores it, coverage loss demotes it.
- ✓FFO coverage check: $4.88 of dividends against $7.39 of 2025 core FFO per share — about 66% paid out, with 2026 guidance of $7.90–$8.00 widening the cushion further.
- !Yield check: 2.83% indicated — $1.22/qtr × 4 at the $172.37 close on Oct. 23, 2026. Real, but modest for a REIT: this card is bought for data-center exposure, not for headline income.
- !Growth check: No increase since the $1.22 rate was set in early 2022, after raises in 2020 and 2021. A dividend that does not grow does not compound, however well covered it is.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.