Equinix is an $80 billion market cap data center REIT with over 260 facilities globally. It has 10,000+ customers, ranging from small businesses to large cloud “hyperscaler” providers like Amazon, Microsoft and Google. Even if you ignore the findings of our investigation and take the financials of Equinix at face value, the company trades at elevated levels; an ~86% premium to its peers on a price to forward adjusted funds from operations (“AFFO”) basis and a ~59% premium on a price to forward funds from operations (“FFO”) basis. Our investigation, which included a review of financial and litigation records and interviews with 37 former Equinix employees, industry experts and competitors, revealed that Equinix manipulates its accounting for AFFO, the key profitability metric for REITs. We estimate this metric was overstated by at least 22% in 2023 alone.
More ... latest change: 2026-02-08
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