What's interesting is how VIC could have contributed so little & NSW so much given the constraints.
With Fitout Capex running at ~$10M/MW, and Revenue running at ~$4M/MW, you can see where the real money is made. This is where I think Airtrunk have had a great strategy in selecting and building sites. NextDC seem to have only just woken up to it.
Important to remember the implied growth rate for NextDC is very high. ~$5.4B Market Cap, with $200M/Y in recurring revenue 0.37% Gross Yield. Let's say they do very well next year $250M/Y @ same valuation 0.46% Gross Yield. The revenue growth rate % is off a small base, and not really sustainable.
I do have some reservations that a global major would come and pay a premium to current Market Capitalisation for the revenue growth profile and all in one small market. Surely an Equinix, Digital Realty, etc..would have plenty of diversified, incremental capex options across their current sites/markets, that are much better risk/reward (conservative).
NXT Price at posting:
$11.90 Sentiment: None Disclosure: Not Held
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