Switch unveiled shareholder value initiatives to support its technology and innovative infrastructure strategy as a continuation of its evolution as a public company. In addition to supporting these shareholder initiatives, Switch added Jason Genrich to the Board of Directors.
Evaluating a REIT election
While conducting ongoing reviews of its directors, the managers evaluate the necessary skills, qualifications, experiences, and diversity of background to ensure Switch’s success for all of its stakeholders. These initiatives include evaluating a REIT election and a review of Switch’s operational and financial targets. Elliott Investment Management has collaborated with Switch on these initiatives and will join the Board of Directors.
Switch Founder and CEO Rob Roy said,
“The combination of the world’s most advanced data center infrastructure, significant expansion capacity, and industry-leading ROIC provide a compelling foundation for continued strategic leadership and financial performance. The initiatives announced today, including the evaluation of a REIT election, are an important step forward to fully realize the value inherent in Switch’s technology and Tier 5 data centers.”
Switch’s REIT Committee of the Board will be responsible for an evaluation process of a REIT election. It will also evaluate Switch’s capital allocation plan, capital structure, and a multi-year financial plan to be discussed at the upcoming Investor Day.
The company recently announced the expansion into a fifth prime campus in Texas, 1.3 million additional square feet to open between now and early 2023, and an additional 1.9 million square feet in the development pipeline through 2026.