Data Center & Gaming REITs Lead; DLR Gets Price Target Bump

Digital Realty Trust ($DLR) received a price target increase from Barclays on July 1, 2026, with the firm raising its target to $197 from $189 while maintaining an Equal Weight rating. The data center REIT is recognized as one of the 10 Best Pick and Shovel AI Stocks to Invest In, reflecting growing demand for data center capacity driven by artificial intelligence and cloud computing expansion. Barclays raised targets across the communications infrastructure real estate investment trust sector, signaling broader optimism about the subsector's growth trajectory. The price target revision comes as data center REITs benefit from sustained leasing activity tied to AI infrastructure buildout.

VICI Properties ($VICI) completed its acquisition of real estate assets of Deerfoot Inn & Casino, Great Northern Casino, and two adjacent limited-service hotels in Alberta, Canada for C$200.6 million (US$144.4 million). The transaction adds C$16.1 million (US$11.6 million) in annual rent to VICI's existing triple-net master lease with PURE, extending the master lease to a full 25-year initial term with inflation-linked rent escalators. The company is also expanding its portfolio by acquiring the Carambola Beach Resort in St. Croix, US Virgin Islands, as announced on June 15. $VICI stock is trading around $27.19 after delivering a total return of approximately 13.4% over five years, with valuation analysis pointing to shares trading at a discount to fair value by approximately 47.4% based on Discounted Cash Flow estimates. The company is classified as one of the best dividend stocks yielding at least 5%.

Equity REITs are positioned to deliver earnings growth, with projections pointing to growth driven by shopping centers, healthcare, data centers, and select offices, according to takeaways from REITWeek 2026. The sector outlook reflects differentiated performance across subsectors as investors focus on REITs with pricing power and long-term lease structures. Valuation assessments suggest selective opportunities exist, particularly in triple-net lease and infrastructure-focused names with inflation-protected cash flows.