QTS Realty Trust, Inc. (QTS)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
QTS Realty Trust, Inc. (QTS) trades at $77.98 with AI Score 49/100 (Grade C). QTS Realty Trust, Inc. is a leading provider of data center solutions, operating a substantial footprint across North America and Europe. Sector: Real estate.
Price live · AI analysis from May 10, 2026Analyst Coverage for QTS: QTS does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates QTS against Real Estate peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
QTS: the 1 perspectives are evenly split.
How is this calculated? →QTS Realty Trust, Inc. (QTS) Real Estate Portfolio & Strategy
QTS Realty Trust, Inc. specializes in data center solutions, managing over 7 million square feet of space primarily in North America and Europe. Leveraging a software-defined platform, QTS provides secure infrastructure and connectivity to hyperscale technology companies, enterprises, and government entities, distinguishing itself through robust service offerings in the competitive REIT sector.
What Is the Investment Thesis for QTS?
QTS Realty Trust, Inc. presents a compelling investment case within the REIT - Industrial sector, driven by the increasing demand for data center solutions. With a P/E ratio of 237.2 and a dividend yield of 2.49%, QTS demonstrates a blend of growth and income potential. The company's strategic focus on hyperscale technology companies and government entities provides a stable revenue base. Key growth catalysts include the expansion of its data center footprint and the ongoing adoption of its software-defined technology platform. However, investors may want to evaluate the competitive landscape and potential risks associated with maintaining high occupancy rates and managing operational costs. The company's beta of 0.56 suggests lower volatility compared to the broader market.
Based on FMP financials and quantitative analysis
QTS Key Highlights
- QTS manages over 7 million square feet of owned data center space, demonstrating significant scale in the data center market.
- The company supports over 1,200 customers, indicating a diverse and established client base.
- QTS operates 27 data centers across North America and Europe, providing a broad geographic reach.
- The company's gross margin stands at 65.8%, reflecting efficient operations and pricing strategies.
- QTS offers a dividend yield of 2.49%, providing income to investors.
Who Are QTS's Competitors?
QTS is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| RITM Rithm Capital Corp. | $9.25 | +1.76% | $5.16B | — |
| TRNO Terreno Realty Corporation | $68.05 | +1.07% | $7.23B | 60 |
| PSA Public Storage | $323.01 | -2.01% | $56.71B | 60 |
| FBBPF FIBRA Prologis | $4.48 | +1.93% | $7.47B | 59 |
| CGIUF ESR-Logos REIT | $1.63 | -1.81% | $1.31B | 59 |
| BUNNF BWP Trust | $2.88 | -7.10% | $2.05B | 49 |
| NSA National Storage Affiliates Trust | $45.32 | -1.56% | $3.50B | 50 |
| SELF Global Self Storage, Inc. | $5.21 | -0.19% | $59.51M | 50 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are QTS's Key Strengths?
- Strategic geographic footprint
- Software-defined technology platform
- Strong customer relationships
- Experienced management team
What Are QTS's Weaknesses?
- High capital expenditure requirements
- Reliance on key customers
- Exposure to economic downturns
- High P/E ratio
What Could Drive QTS Stock Higher?
- Expansion of data center footprint in key markets.
- Increased adoption of software-defined technology platform.
- Potential strategic partnerships with hyperscale technology companies.
- Development and deployment of edge computing solutions.
What Are the Key Risks for QTS?
- Rich valuation — a P/E of 237.2 runs well above the Real Estate sector’s ~20x, leaving little room for a miss.
- Insider selling — insiders were net sellers of roughly $13.1M recently.
- Intense competition from other data center providers.
- Technological obsolescence in the rapidly evolving data center market.
- Cybersecurity threats and data breaches.
- Changes in regulations related to data privacy and security.
- High capital expenditure requirements for data center development and maintenance.
What Are the Growth Opportunities for QTS?
- Expansion of Data Center Footprint: QTS has the opportunity to expand its data center footprint in both North America and Europe. The global data center market is projected to reach $300 billion by 2027, growing at a CAGR of 13%. By strategically investing in new and existing facilities, QTS can capture a larger share of this growing market and increase its revenue streams. The timeline for expansion will depend on market demand and capital availability.
- Adoption of Software-Defined Technology Platform: QTS's software-defined technology platform provides a competitive advantage by enabling secure and compliant infrastructure solutions. As more enterprises and government entities adopt cloud-based services, the demand for these solutions will increase. By further developing and promoting its platform, QTS can attract new customers and increase its market share. The timeline for increased adoption is ongoing, with continuous enhancements and marketing efforts.
- Strategic Partnerships with Hyperscale Technology Companies: QTS can strengthen its position by forming strategic partnerships with hyperscale technology companies. These partnerships can provide a stable revenue stream and access to new markets. The hyperscale data center market is expected to grow significantly in the coming years, driven by the increasing demand for cloud services. The timeline for forming these partnerships is ongoing, with continuous negotiations and collaborations.
- Focus on Edge Computing Solutions: As the demand for low-latency applications increases, QTS can capitalize on the growing edge computing market. By developing and deploying edge data centers, QTS can provide solutions that meet the needs of customers in industries such as telecommunications and manufacturing. The edge computing market is projected to reach $40 billion by 2028, growing at a CAGR of 20%. The timeline for developing edge computing solutions is within the next 2-3 years.
- Enhancement of Connectivity Solutions: QTS can enhance its connectivity solutions to provide seamless and reliable data transfer for its customers. This includes investing in high-speed networks and developing partnerships with telecommunications providers. The demand for high-speed connectivity is increasing, driven by the growth of cloud computing and big data analytics. The timeline for enhancing connectivity solutions is ongoing, with continuous upgrades and expansions.
What Opportunities Does QTS Have?
- Expansion of data center footprint
- Adoption of software-defined technology platform
- Strategic partnerships with hyperscale technology companies
- Focus on edge computing solutions
What Threats Does QTS Face?
- Intense competition
- Technological obsolescence
- Cybersecurity threats
- Changes in regulations
What Are QTS's Competitive Advantages?
- Strategic geographic footprint
- Software-defined technology platform
- Strong customer relationships
- High barriers to entry in the data center market
What Does QTS Do?
QTS Realty Trust, Inc., established to address the growing demand for data center solutions, has evolved into a key player in the REIT - Industrial sector. The company owns, operates, or manages 27 data centers, supporting over 1,200 customers across North America and Europe. QTS distinguishes itself through its software-defined technology platform, which enables the delivery of secure, compliant, and highly customizable infrastructure solutions. These solutions cater to a diverse clientele, including hyperscale technology companies, enterprises, and government entities. QTS's business model focuses on providing robust connectivity and premium customer service, ensuring high levels of client satisfaction and retention. The company’s strategic geographic footprint allows it to serve key markets and capitalize on the increasing demand for data storage and processing capabilities. QTS's commitment to innovation and customer-centric solutions has solidified its position as a leading provider in the data center industry.
What Products and Services Does QTS Offer?
- Owns, operates, and manages data centers.
- Provides secure and compliant infrastructure solutions.
- Offers robust connectivity services.
- Delivers premium customer service.
- Serves hyperscale technology companies.
- Supports enterprises and government entities.
- Utilizes a software-defined technology platform.
How Does QTS Make Money?
- Generates revenue through leasing data center space.
- Provides managed services and support.
- Offers connectivity solutions.
- Focuses on long-term contracts with customers.
What Industry Does QTS Operate In?
QTS Realty Trust, Inc. operates within the rapidly growing REIT - Industrial sector, driven by the increasing demand for data storage and processing. The market is characterized by intense competition, with players like Rithm Capital Corp. vying for market share. Trends include the rise of hyperscale data centers and the growing importance of edge computing. QTS's focus on secure, compliant infrastructure positions it well to capitalize on these trends, particularly within the hyperscale and government sectors. The REIT - Industrial sector is expected to continue its growth trajectory, fueled by cloud computing and digital transformation initiatives.
Who Are QTS's Key Customers?
- Hyperscale technology companies
- Enterprises
- Government entities
QTS Valuation & Market Position
Relative to its peer group, QTS's quantitative score of 49/100 is below the peer average of 60/100.
ROE 1%Key Financial Metrics
Return on equity for QTS Realty Trust, Inc. stands at 1.1%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.4%, showing how much profit it generates from its asset base. QTS trades at a trailing price-to-earnings ratio of 237.21, above the Real Estate sector average of ~20x. A current ratio of 0.62 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 0.4%, the inverse of the P/E and a quick read on earnings relative to price.
Net sellingInsider Activity
The most recent 12 insider filings for QTS Realty Trust, Inc. break down as 10 sales and 2 purchases. On net that is roughly 240K shares disposed (about $13.1M), a signal worth weighing alongside the fundamentals.
QTS Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in the company's future, indicating that leadership believes in its growth potential.
- Community sentiment has shifted positively, with discussions highlighting QTS's strong positioning in the data center market.
- Investors are optimistic about the increasing demand for cloud services, which aligns with QTS's business model and expansion plans.
- Recent strategic partnerships have strengthened QTS's market presence, enhancing its competitive edge in the real estate sector.
Bear Case
- Concerns about rising interest rates could impact REIT valuations, leading to bearish sentiment among some investors.
- Some community members express skepticism about the long-term sustainability of growth in the data center space amidst fierce competition.
- Recent earnings reports have shown mixed results, leading to uncertainty about QTS's ability to maintain momentum.
- Market perception is cautious as broader economic conditions remain unpredictable, causing hesitation among potential investors.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
QTS Latest News
No recent news available for QTS.
QTS Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for QTS.
Price Targets
Wall Street price target analysis for QTS.
QTS MoonshotScore
What does this score mean?
The MoonshotScore rates QTS's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Chad Williams
CEO
Chad Williams has served as the CEO of QTS Realty Trust, Inc., guiding the company's strategic direction and growth. His background includes extensive experience in the data center and telecommunications industries. He has a proven track record of building and scaling successful businesses. Williams's leadership is characterized by a focus on innovation and customer satisfaction. He holds a degree in Business Administration.
Track Record: Under Chad Williams's leadership, QTS Realty Trust, Inc. has expanded its data center footprint and strengthened its position as a leading provider of data center solutions. He has overseen the development and implementation of the company's software-defined technology platform. Williams has also been instrumental in forming strategic partnerships with hyperscale technology companies. He has successfully navigated the company through periods of rapid growth and market volatility.
Common Questions About QTS (Real Estate)
What does QTS Realty Trust, Inc. do?
QTS Realty Trust, Inc. is a real estate investment trust (REIT) specializing in data center solutions. The company owns, operates, and manages data centers, providing secure and compliant infrastructure solutions to a diverse range of customers, including hyperscale technology companies, enterprises, and government entities. QTS differentiates itself through its software-defined technology platform, which enables highly customizable and scalable solutions. The company's business model focuses on leasing data center space and providing managed services, ensuring reliable and efficient data storage and processing for its clients.
What do analysts say about QTS stock?
Analyst coverage of QTS Realty Trust, Inc. typically focuses on its growth potential within the data center market and its ability to maintain high occupancy rates. Key valuation metrics include funds from operations (FFO) and adjusted funds from operations (AFFO), which are commonly used to assess the performance of REITs. Analysts often consider the company's strategic investments in expanding its data center footprint and its ability to attract and retain key customers. The consensus view is influenced by the company's financial performance and its competitive positioning within the REIT - Industrial sector.
What are the main risks for QTS?
QTS Realty Trust, Inc. faces several risks inherent to the data center and REIT industries. Intense competition from other data center providers can pressure pricing and occupancy rates. Technological obsolescence poses a risk, requiring continuous investment in new technologies to remain competitive. Cybersecurity threats and data breaches can damage the company's reputation and result in financial losses. Changes in regulations related to data privacy and security could increase compliance costs. Additionally, high capital expenditure requirements for data center development and maintenance can strain the company's financial resources.
What are the key factors to evaluate for QTS?
QTS Realty Trust, Inc. (QTS) holds an AI score of 49/100 (low). P/E: 237.2x vs the S&P 500's ~20-25x. Not financial advice.
How frequently does QTS data refresh on this page?
QTS prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven QTS's recent stock price performance?
QTS Realty Trust, Inc. (QTS) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Strategic geographic footprint. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider QTS overvalued or undervalued right now?
QTS Realty Trust, Inc. (QTS) trades at 237.2x earnings. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying QTS?
Before investing in QTS Realty Trust, Inc. (QTS), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available data and may be subject to change.
- Financial metrics are as of the latest reporting period.