Core Insights - The Canada Pension Plan Investment Board has acquired a 60% stake in a Nordic data-center operator, indicating a strategic investment in digital infrastructure [1] - Equinix retains a 40% ownership in the same data-center operator, highlighting a partnership in the digital infrastructure sector [1] Company Summary - Canada Pension Plan Investment Board is expanding its portfolio by investing in the Nordic data-center market, which is a growing segment within the digital infrastructure industry [1] - Equinix, as a co-owner, continues to play a significant role in the data-center space, leveraging its expertise and resources in collaboration with the Canada Pension Plan Investment Board [1]

Core Insights - Canada Pension Plan Investment Board and Equinix have agreed to acquire Nordic data center operator atNorth from private equity firm Partners Group in a deal valued at approximately $4 billion [1] Company Summary - The acquisition involves Canada Pension Plan Investment Board and Equinix, indicating a strategic move into the Nordic data center market [1] - atNorth is a Nordic data center operator, which suggests a focus on expanding data center capabilities in a region known for its favorable conditions for data operations [1] Industry Summary - The deal is valued at about $4 billion, highlighting the significant investment interest in the data center sector, particularly in the Nordic region [1] - The acquisition reflects ongoing trends in the data center industry, where large investments are being made to enhance infrastructure and capacity to meet growing demand [1]

Core Insights - CPP Investments and Equinix have announced a joint agreement to acquire atNorth for an enterprise value of US$4 billion, aimed at enhancing data center capacity in the Nordics to meet rising demand for enterprise, AI, and hyperscale services [1][2] Group 1: Acquisition Details - The transaction involves CPP Investments investing approximately US$1.6 billion for a 60% controlling interest, while Equinix will hold a 40% stake [1] - The acquisition is expected to be immediately accretive to Equinix's adjusted funds from operations (AFFO) per share upon closing [1] - atNorth operates eight data centers across Denmark, Finland, Iceland, Norway, and Sweden, with plans for further expansion and 1 GW of secured power [1][2] Group 2: Strategic Importance - The acquisition underscores the strategic significance of the Nordics as a growing hub for AI and digital infrastructure, supported by a resilient economy and a focus on sustainability [1][2] - atNorth's facilities are designed to support high-density workloads, including AI and high-performance computing, with a focus on renewable energy and circular economy principles [1][2] Group 3: Financial and Operational Aspects - CPP Investments and Equinix have provisionally agreed to a financing package of US$4.2 billion to fund the acquisition and business expansion [2] - Equinix currently operates eight data centers in the Nordics, contributing to a broader European footprint of over 100 facilities across 20 countries [2]

Equinix and Canada Pension Plan Investment Board are close to reaching a deal to acquire atNorth, a pan-Nordic data-center operator backed by Partners Group, Bloomberg News reported on Thursday, citin... ...

It's no secret that AI consumes a lot of energy. The numbers are just staggering. The typical AI data center uses as much power as 100,000 households. Meanwhile, the largest AI data centers consume 20 times that amount. Access to power is becoming an obstacle as AI scales, due to the pressure it's placing on the electric grid and energy prices. As a result, a growing number of AI data center developers are also building the power they need into their projects. They're doing that through partnerships with B ...

Investment Rating - The report indicates a positive outlook for the Lagos real estate market, highlighting its role as a major economic pillar in Nigeria, particularly after the GDP rebasing exercise [4][15]. Core Insights - The Nigerian economy is transitioning towards stabilization and growth, with a notable GDP growth of 3.98% in Q3 2025, driven by a resilient non-oil sector [5][15]. - Real estate has emerged as the third-largest sector in the rebased economy, contributing 13.36% to total real GDP, underscoring its structural importance [9][15]. - Inflation has moderated significantly, decreasing from 25.3% in June to 15.15% by December 2025, which is expected to support market stability [12][15]. - The naira has stabilized within a managed band, supported by a significant increase in external reserves, which reached $45.45 billion by December 2025 [13][15]. - The enactment of the Nigeria Tax Act 2025 is anticipated to enhance the macro environment for real estate, promoting formal agreements between landlords and tenants [14][30]. Economic Update - The GDP rebasing exercise revealed a larger and more diversified economy, with nominal GDP revised upward by 41.7% [4]. - Real estate's contribution to GDP highlights its critical role in national wealth, with a quarter-on-quarter growth rate of 3.50% [5][9]. - The construction sector outperformed the broader economy with a real growth rate of 5.57%, driven by public infrastructure projects [11]. Residential Market Review - Residential rents in Lagos continued to rise despite moderated inflation, driven by strong demand and constrained supply [22][32]. - Government interventions have facilitated the delivery of 653 residential units through public-private partnerships [23][32]. - The launch of the MOFI Real Estate Investment Fund offering long-term loans at 9.75% indicates ongoing public sector efforts to address housing shortages [24][32]. Retail Market Review - The retail sector has seen limited new development, with a gradual reconfiguration of tenant mix and retail strategies [33][39]. - Indigenous convenience-focused brands have gained traction, reflecting a shift towards cost-efficient retail formats [33][39]. - The average prime retail rents in Lagos are aligned with several African peers, indicating competitive pricing [35]. Office Market Review - The Lagos office market is showing signs of recovery, with Grade A occupancy levels reaching 73% [40][47]. - Rental performance has softened, particularly for prime assets, with effective rents adjusting downward to support occupancy [41][47]. - The emergence of new office developments in Ikeja indicates continued demand for modern office spaces [43][47]. Industrial Market Review - The industrial sector remains resilient, supported by logistics demand and manufacturing activity within Special Economic Zones [49][56]. - Prime industrial rents vary significantly based on infrastructure quality, with Grade A demand accelerating in well-serviced areas [51][56]. - The demand for warehouse spaces has grown approximately 25% year-on-year, reflecting the sector's expansion [74][56]. Infrastructure and Data Centre Market Review - Key infrastructure projects, including the Lagos–Calabar Coastal Highway and the Lagos Green Line Rail Project, are advancing, enhancing connectivity [57][63]. - The data centre market in Lagos is valued at approximately $1.4 billion, indicating strong investor interest and capacity additions [59][63]. Port Harcourt Real Estate Market - Port Harcourt's real estate market is driven by the oil sector, with residential demand growing at an estimated 12-15% [65][87]. - The retail sector has expanded significantly, driven by a rising middle class and consumer preferences for modern shopping environments [67][87]. - Industrial land prices have risen 10-20% over three years, with demand for warehouses increasing by about 25% year-on-year [74][87]. Abuja Real Estate Market - Abuja's real estate market is characterized by high demand and strong capital appreciation, with average property prices projected to rise by 10-15% annually in prime areas [81][98]. - The market is shifting towards integrated, technology-enabled commercial spaces, reflecting evolving tenant needs [85][98]. - The persistent housing deficit and urbanization are driving demand for middle-to-low-income housing in satellite towns [92][98].

Core Viewpoint - Dominion Energy forecasts annual profit below Wall Street expectations while increasing its five-year capital spending plan by nearly 30% to meet rising electricity demand [1] Group 1: Financial Forecasts - Dominion Energy expects fiscal 2026 operating earnings of $3.45 to $3.69 per share, with the midpoint below analysts' average estimate of $3.60 [1] - The company's fourth-quarter operating expenses rose nearly 11% to $3.33 billion compared to the previous year, impacting overall financial performance [1] - Dominion's adjusted profit for the quarter ended December 31 was 68 cents per share, slightly exceeding estimates of 67 cents [1] Group 2: Capital Expenditure Plans - Dominion plans to spend $64.7 billion on capital investments from 2026 through 2030, an increase from its prior budget of $50.1 billion through 2029 [1] - The utility has contracted nearly 48.5 gigawatts of data center capacity as of December, reflecting a 1.4 GW increase since September [1] Group 3: Market Context - U.S. utilities, including Dominion, are increasing capital expenditure budgets due to extreme weather conditions and rising demand for new power capacity from data centers, particularly those focused on artificial intelligence and cryptocurrency [1] - Dominion serves the world's largest data center market, which exceeds the combined capacity of the next five largest markets in the U.S. [1]

Equinix, Inc. (EQIX) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, EQIX's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross."Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200 ...

Core Insights - Equinix, Inc. (EQIX) reported a Q4 for FY'25 that fell short of revenue and earnings expectations, although the overall FY'25 performance was strong with significant revenue growth [1] Financial Performance - Q4 results missed both revenue and earnings expectations, indicating potential challenges in the short term [1] - Despite the Q4 miss, the full year FY'25 numbers were described as great, suggesting robust overall growth for the company [1] Investment Philosophy - The company is characterized by disciplined capital allocation and exceptional returns on capital, which are key factors for long-term investment potential [1]

Core Viewpoint - The Vanguard Real Estate ETF (VNQ) is attracting retirees seeking quarterly income, while growth investors are moving away due to its underperformance compared to broader equity markets, primarily driven by interest rate sensitivity [1]. Group 1: VNQ Performance and Characteristics - VNQ has returned 88.13% over the past decade, significantly lower than the SPDR S&P 500 ETF Trust (SPY), which returned 255.65% during the same period [1]. - The ETF yields 3.82% and has 54% of its assets concentrated in its top 10 holdings, which include Prologis, American Tower, and Equinix [1]. - VNQ provides diversified real estate exposure without the management burden of direct property ownership, tracking the MSCI US Investable Market Real Estate 25/50 Index with net assets of $65.7 billion [1]. Group 2: Market Conditions and Risks - VNQ's performance has been impacted by rising interest rates, with the 10-year Treasury yield decreasing from 4.55% to 4.04% over the past year, yet it still lags behind equities [1]. - Housing starts have declined by 16.4% year-over-year, indicating softer construction demand that affects certain REIT categories [1]. - The ETF sacrifices growth potential for income, making it more suitable as a portfolio diversifier rather than a growth engine [1].