A Cyber Every-Day REIT

Corporate Office Properties is well-positioned to grow earnings and dividends in The Cybersecurity sector.

Summary

  • The Cybersecurity sector is a relatively new sub-sector that essentially includes all the processes and mechanisms by which digital equipment, information, and services are protected.
  • The most recent and notable data breach occurred at Equifax where 143,000,000 records were compromised.
  • The House just passed $605 billion, which is actually up from the $575 billion that President Trump wanted.

Today is Cyber Monday, a day that has become the online equivalent to Black Friday. In 2016, according to Adobe Digital Insights, Cyber Monday hit a new record with $3.45 billion, and it's the first time that online sales in one single day surpassed $3 billion in US history (the numbers are up 12.1% from a year earlier).

A quick Google search of the words “Cyber Monday” suggests that 2017 will be a record year for online shopping. This timeline below shows the U.S. online spending on Cyber Monday from 2005 to 2015. On Cyber Monday in 2016, desktop e-commerce sales amounted to $2.67 billion, up from $2.28 billion in the previous year. This figure represents a 17% year-on-year growth.

Cyber Monday may be a new term for many, but “cyber” is also a new REIT sector in my coverage universe, called cybersecurity.

Similar to Data Center REITs, the cybersecurity sector is a relatively new sub-sector that essentially includes all the processes and mechanisms by which digital equipment, information, and services are protected from unintended or unauthorized access, change, or destruction.

Cybersecurity, as defined by Wikipedia, is the process of applying security measures to ensure confidentiality, integrity, and availability of data. It attempts to assure the protection of assets, which includes data, desktops, servers, buildings, and most importantly, humans.

While the forces behind cyber threats have not been revealed, the demand for global security is at an all-time high.

Data Records Are Lost Or Stolen At The Following Frequency

The most recent and notable data breach occurred at Equifax (NYSE:EFX) where 143,000,000 records were compromised. According to Equifax, cybercriminals “exploited a U.S. website application vulnerability to gain access to certain files.” The hackers accessed personal information such as names, Social Security numbers, birth dates, addresses, credit card numbers and the numbers of some drivers’ licenses.

This REIT Is Backed By Cybersecurity Properties

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