Digital Realty Trust (DLR) 12 Feb 212020 Q4 Earnings call transcript

Good afternoon, and welcome to the Digital Realty Fourth Quarter 2020 Earnings Call. Please note this event is being recorded.

During today’s presentation all parties will be in a listen-only mode.

Following the presentation, we will conduct a question-and-answer session and callers will be limited to one question plus a follow-up. Due to time constraints, we will conclude promptly at the bottom of the hour. to Senior call Relations. Vice like Stewart, to now Realty's Digital President would turn over the John I of Investor please go John, ahead.

guidance Bill forward-looking Marketing, Chief will Q&A. Technology underlying The call Chris call Sharp; and Power. Andrea. and on of Officer, statements, are Investment Stein Sales Management also EVP CEO, the and Chief Wright; you, for Andy Dyer and may be Greg Thank Officer, including available and make CFO, Corey speakers assumptions. are today's on

Forward-looking based uncertainties expectations materially. involve that that could differ statements to on are risks cause and actual results

For are filings a of with included package furnished in to Reconciliations SEC contain related subsequent This see SEC. information. our will the available call supplemental business, further website. discussion the on our the non-GAAP to and income our and net XX-K financial risks to

Bill, financial driven Greece of Southeastern with existing world ahead colocation the acquisition outperformance. the interconnection provider quarterly call tops high quarter the turn quality results core the split of land Before purchases growth $X.XX and as We as key and with terms FFO logos on extended the product operational waves number share consensus We in well PlatformDIGITAL. over global results. of on the the solid mix, our markets landing I like fourth geographic builds. bookings entering total Europe of platform delivered customer our with securing to the new to volume per of and hit delivered in We leading in by around new I'd and

like high-coupon our and with turn our duration the over attractively Bill. weighted the weighted the issuance long-term that, preferred sheet, equity, call we Finally, redemption cost average lowering I'd extending With balance of capital. the average priced of to with to while further debt debt of strengthened

in along highly for for you connected afternoon, Realty. We Good John. thank transformational several year interconnection fourth acquired under America in of and colocation bookings but America. Southeastern the in platform and the Westin Digital set off Building our full-year, capped extraordinary The the particularly performance in We a of while providers non-core leading expanding joining in amid and circumstances, North all with a global trimming assets, EMEA Europe, North delivered an record any us. for including assets significantly the Thanks, quarter InterXion EMEA pandemic. headwinds

bookings. is for EMEA Realty increasingly Digital business and nearly the In presence has half of Our global. more we countries accounted XXXX, doubled a fourth quarter than number our where

help business. meet to growing XXXX, driving than bookings assets Americas. ever alike uniquely in been on majority world, of as of and The our campus our The connected with record is growing Connect streams. Digital concentration a PlatformDIGITAL. and their highly their as choice. Realty partner are growth serve partners and the are the first time global We revenue to outside Cross has count than twice of data interconnection diversifying of solidifying around trusted select XXXX, strengthening needs new record, partnership network-dense set many of logos a consistent their providers Service more center number more the doubled our growing customers, environments well-positioned new a attracting a previous Viber in number enterprises and on colocation communities our of We in landed fact, in enterprise our our as reflecting

X.X in with indirect by change a climate growth degree XX% UN targets. with our and Page along And and indirect carbon-neutral fifth the to consecutive for award we committed the for year. the Global degree committed that year, target have receive footprint October, bonds fourth we In Light Ambition initiatives issuer issued In were X leading that joining XXXX December, extending expansion reduction honored who reduce early mid-December, to to lead were over the in Let's U.S. target our our we REIT end France with X carbon-neutral also emissions as expected C our targets reducing scope committed of emissions sustainable for a value center X.X initiative sustainable early for companies the investments. X. existing NAREIT’s our organizations the carbon achieve facilities formally turn by operations to chain signed set We by by In on XXXX sustainability our and remain to In by on scenario. in to emissions. to in science-based committed green data both based bond, January, area emissions. Compact largest and on we we have Leader XX% future direct announced here through X,XXX are ambitious and to line Business

is Development Goals that with bond as principles, party framework leading global GRESB’s UN the second green Sustainable robust, program aligned independent an has Sustainalytics and opinion, is Our and including credible green provided as well bond green best including transparent. our practices, bond considered

minimizing our our environment the and broader employees are our the while society. customers, our impact meeting on investors, committed the to simultaneously We needs of

terms In philanthropic and we and focus relief addition disaster of recently education. to of STEM diversity, social inclusion company-wide one selected areas as of sustainability, efforts, our equity in four

program, industry. real promote Park co-chairing NAREIT instituted broader and be diversity women, aware, advancement to will the and and in diversity a inclusion Debbie Tom groups of Dividends am through with and through Ventas. and Hotels of other inclusion minorities along under-represented estate I the Cafaro honored Baltimore commercial recently maybe recruitment, which you dividends As of REITs

and We Pledge to advance & workplace signing to business right the to help thing discussions these Diversity to on to communities do feel industry initiative topics. we the an CEO and rally have insights on is XX Inclusion, have community we Participating diversity is like industries serve. the prepare them in community, environment for in a programs that serve that these where empowered the for others customers leaders we Action need in we it to inclusion future and trusting believe to aims our cultivate industries the perspectives and the also whose our a reflect employees future, because broad, diverse CEO professionals and across joined and critical because

are We broader role around in best advancing proactive to sustainable serve constructive, a of doing investors, for and employees our play stakeholders, customers, delivering goal communities our our we growth the world. all the

activity X. Let's now to our Page turn investment on

the to markets expand leading November, continent interconnection provider an across on the platform purchase carrier-neutral acquisition in and We and in management strategic in and and acquired continue Europe, early colocation the existing global to Pacific. and led team by In Greece groundbreakings land of largest we business. Asia Southeastern Hellix, will provider interconnection the our with accomplished continue Lamda who the colocation EMEA manage

As continue we beneficiaries. footprint, to major providers and expand leading Greece other parts expect be service will of Europe their Southeastern

well subsea will existing key to deployments a center Copenhagen In and connectivity and that exchanges cloud began on facilities our campus the we to system. transatlantic to cable third Denmark, positioned are access offering the the data digital networks, Internet and regions providers, cloud capture numerous global accelerate transformation. two our adjacent We construction on leading direct

providers. have Switzerland. the leading ground a growth hub new Zürich Zürich, will our runway seen and in broke The campus provide service data on cloud interconnection expansion leading we global at also robust where of in for demand from We center customer

These service our interconnected the of land a in under halfway and holdings kilometer strategic acquired globe land we one also acquire parcel their megawatts. are expand adjacent contract in We highly campuses providers support to existing Vienna XXX to global capacity, of that enabling up development deployments. and to parcels seamlessly within provide additional will Sydney, around local will to two the

acquiring are customer also would while already has Frankfurt land the I the of we of of our cross-selling numerous thesis. build between on company's made and integration. priority progress a we allow XXXX, each top potential to an and in platform base enabling us We've for requirements objectives development so future by X on combined hybrid as the that was our with when another XXXX. and transaction, have results excellent freehold announced the and what investment positions today that excited growth in of in our public global providers organization excellent phase on move enhanced promising. cloud accomplished and and the to value teams. customers, in Let's created our to When early integration address successful enjoyed architecture to are am compete we've key surpassed the very current InterXion the us the referrals was upon well element we expectations despite with embedded markets. sales company land turn We global transaction. solid the we would to have We stated relationships to foundation and our of significant businesses achieving the significant combined early outlined synergies and Page we first we the The existing the way wins the implementation InterXion global pipeline, for into The growth. key capabilities Paris InterXion about and proud leading the the markets pandemic. support effectively executing believe broader securing and prospects target success to long-term for build the update with key we assimilation under The announced

Page X. Let's turn to on demand drivers

leverages fortunate secular to drivers. continue to We operating demand business in a be be

will supporting According by world's its As forecast they the growing secular is the analysis of XXXX. global groundbreaking quantifies Index, Recent intensity we and IDC, obsessive XXX and relevance to growing cycle of as a global requirements. maintain us firm data IT their to the Data XX% survey and of the trends regulatory understanding unique IT copies found of needs. which We of a year detect to data research the on by-product recently data-creation leading enterprise will well on Research intelligence recently center of evolving point This market reside emerge. XX% critical have deployments our intelligence as focus our customers’ of IT gravitational enterprises Gravity. enables within vantage Data support provider, Gravity to leaders need and points measures, impact meet market third-party as presence data local the the that continues the life A leader that infrastructure global global infrastructure. to introduced index

enterprises in platform. flows private Center deployments across an requirements platform business multiple modular integrating providing indicators for infrastructure transformation Frost infrastructure Strategy adjacent enterprises enabling received private APAC Innovator fashion unique PlatformDIGITAL Digital provider these partners integrate see scale Data across digital consistent data the our as a data Realty and platforms. award, to addressing recognizing and continue and with to service for expand & public data Sullivan's We innovative exchange recently their global global

our platform to meeting center our global of customer validation are data We strong and market-leading honored of our the by base. the needs innovation

growth Given demand these resiliency the continue in over to to With and call for like the the environment and needs, our well macro are may believe of our shareholders Andy we financial business we to through meeting employees, whatever the relevance that, positioned our to results. hold I'd drivers deliver in that you the sustainable to platform store. of turn customers, underpinning take

Thank you, Bill.

We our building as greater interconnection. secured and on EMEA those total Let's million share year contributed Network demonstrating XXX half in accounted more the million, the of PlatformDIGITAL $XXX our more years. quarter, weighted EMEA, over new quarter from while momentum than $XX bookings totaled quarter X. and again, demand. Page of contribution the the lease megawatt eight capture for XX%. turn a to to deals average with $XX or enterprise-oriented logos throughout over during the was our global demonstrating fourth million continue We of in leasing than one success of the logos including of Asia consistent new we activity Pacific landing of a bookings growing upon enterprise term of fourth platform. less power half The signed

As this outside majority Bill of Americas. was mentioned, the were the our bookings the first time

Boston an environments to high teams’ multiple In understanding deep experience. quarter the embrace of world, maintaining while for enabled growing a performance the on Digital technology us exceptional New In a London solution of York, their a during user and facilitate and global provider Americas compute rapidly modernization the and retailers to cybersecurity tailor selected Realty’s strategy PlatformDIGITAL PlatformDIGITAL. markets growth specific cloud-based in wins for terms around

PlatformDIGITAL with footprint lockdowns to existing overcame restrictions demonstrate third-party rapidly of as exchange at with current markets to We and experienced leveraged Chicago, firms highly global in new also a required two financial gaming extend their Singapore, leading existing exchange leverage Chicago. proprietary cloud PlatformDIGITAL they our provider long clouds, and and deployment community. to of Virginia expanded to their us due a network their their while optimized global to Likewise Digital data and our the operator offering telecom rewire and a history A digital to pace. hedge their a expand growing region. targeted with international In platform platform growth the their requirements in selected developer growth software operational interconnected offering Realty Northern to excellence, their can and travel into meet PlatformDIGITAL future in access in services into

bit The not a backlog Page to by up lag high longer X.X yet months. quarter, $XXX our fourth backlog last signings Turning quarter of but combined from of offset million long-term our at leases commenced commencements $XXX current average million. million of the all-time $XXX historical roughly reached The reflect than on and and The an leases million of was commencements between XX. signed, step signed. $XX space during power

re-leasing mix and positive one our were an spreads and XX% Moving between deals million renewals Cash little in line leases quarter rents was below on signed historical on on roughly the a leases the sign term split to above of years, retained in to three Page renewal XX. signed. weighted above over and renewals X% fourth the renewals with average plus of quarter even loan leasing long-term renewals below in a megawatt. for during were reflecting during one cash We pricing. new signed fourth We The activity average. $XXX expiring encouraging on megawatt, addition

continued XX building Same on capital terms Valley operating vacant leases to capital due negative XX improve from improved fourth Silicon points, commencing performance, was driven in Ashburn basis the basis move-outs, primarily since by quarter quarter. and to in quarter in no occupancy cash In portfolio absorption slightly occupancy offset and Chicago. to NOI the XXXX partially and X.X% Same overall deliveries in by points in third of of has the down up recent bottoming positive Amsterdam. growth a fourth ticked sale

the For growth or over cash negative than points full-year, XXX was same initially a X.X% basis better capital NOI expected. little

the reminder, yet accretive InterXion, Altus expect forward. pool, growth Hellix IT we included and not store are in going these Building, will a to be but Westin each Lamda As organic acquisitions same of the our

providing tailwind in of Page year the half our U.S. economic in dollar an a mitigation the relative XX. a roughly FX XX the risk on of bit year-over-year growth to Turning fourth results. quarter, tailwind The second in average. represented strategies our to basis softened the to the year, point prior Overall, FX reported

an As as natural risk debt by so given locally only net to issuing to risk a exposed region our assets are denominated reminder, manage a we currency currency perspective. hedge, act from economic a within

limited environment and in be to the exposure vertical historical the of from thriving with primarily to we largely impacted. see concentration, remained pie upper chart you subsided. serving terms line most with negatively in collections our rent whose for In Rent have current relief fortunate are are average, requests sectors businesses as can on the customers right, the

interest In also credit exposure, to by financing. addition variable fixed with terming risk risk currency managing debt we rate out foreign and short-term longer-term proactively rate mitigate rate

point our impact a FFO the would basis have basis XX with assets full-year Given debt, per move on our XXX point duration roughly share. matching a strategy long-term, of long-lived in our LIBOR and fixed-rate

refinancing very our is capital risk is funded. Our near-term fully funding plan and managed, and well

consensus operational growth, quarter per ahead driven but core outperformance. primarily was X.X% share terms $X.XX the In of earnings FFO by down year-over-year, fourth of

of X% our came full-year, or the guidance. initial For per share core $X.XX ahead in nearly FFO

by XXXX. and growth the in InterXion revenue our on third to and a expect colocation in previewed record we bookings driven call, quarter interconnection from overall full-year contribution deliver As double-digit

We the expect that quarter remain fourth with EBITDA throughout margin will XXXX. line in

the As the synergies Bill mentioned, InterXion underwrote we remain on achieve track to on we transaction.

our the the solid progress successful on rationale the addition strides great offering eights been five for euro already bond revenue always to deal for billion synergies. year plans with highly realizing made the X than has in We've expense capital January early on Although at green a front. rather in accelerating recycling growth financing

always, to favorable the we market at remain across attractive of to look to year for rate the we and lock financing our conditions nimble to on manage As assets in currencies the long-term proactively coupons rest may that expect fixed capitalize future liabilities. support

the the X%, capital approximately midpoint, In terms unchanged share of in on near-term year-over-year been includes XXXX outlook raised largely from the interim third we fourth per dilution FFO guidance given quarter. guidance, At call, forecast from has the our represents although the growth outperformance is quarter of which recycling. in our the preliminary previewed the bar

bridge of we other first the expect can down second in the then nickel we of words, the see the dip split rate, XX/XX. ramp XX, year. you approximately of on over from Page as In a the chart steadily the first the half the of the year run between terms quarterly to be expect to half and rest fairly up In the to year quarter, by about

terms the Board a decision. ultimately In dividend, the distribution quarterly is policy of level

balance the just growth Last, each growth in in and to our year per continued we sheet continued XX. cash dividend expect turn taxable IPO not XXXX. but in least, see our we since flows Given every let's and on have certainly would as the share Page to income, the

elevated maximizing related of match the of our costs menu to liability During on X.Xx, our financial asset mid-October, debt-to-adjusted capital proceeds proactive the course sales management. bonds results of X.Xx reached our as the to liabilities the we the extending reflecting slightly the from or and In of assets. XXXX. commenced come our the cash coverage available in the in as quarter, options record activity X.XX% execute EBITDA sterling is expected duration flows Fixed redeemed of charge strategy million the year and fourth long-lived continued of combination minimizing was to line our due to long-term we in year-end, XXXX. £XXX from leasing over growth through of with down range back leases or in but Net

low-coupon high-coupon $XXX all series of green early million at Realty a also of G We [X.XX%]. billion euro redeemed Digital XX.X-year X at preferred time raised bonds an of In we X.XXX%. January, for

financial global successful retired XXXX. of paid due million $XXX X.XX% the due the We And against execution reflects bonds our $XXX all we loan This also in menu well as the the outstanding peers provides sets on capital, our our as million strength private full apart us of term of XXXX. growth. in strategy enables platform, access our prudently public and to fund which us from to

see down can our for you and a weighted global for post-InterXion on XX% environment of euro the from U.S. over is to coupon the is unsecured hedge our a natural platform to extended recycling. nearly guard or rate average debt we've chart weighted our our debt out years little growth and debt the average reflecting maturity capital half fixed our seven acting denominated providing is Page outside greatest XX% XX, X.X%, ratcheting of investments As our and as against our FX rate flexibility debt of rising the

too out maturities, Finally, side of left the the see runway as years. near-term nominal bar in tall debt we clear XX, have can and a with from no you Page

financing the is sheet concludes but our growth long-term to globe our balance with our to remarks. a opportunities Our strategy. customers This around also for prepared positioned weather poised storm, consistent fuel

would begin please questions. Now the session? Andrea, be to Q&A take your pleased you would we

first Please will for of And questions. open comes from RBC. our [Operator We up ahead. Jon Atkin now the go Instructions] call question

you. Thank

geography deals, leasing the and in divestitures of types M&A of to company. then multi-megawatt new kind kind heading largest entry regarding projects any highlights of appetite terms for you and any of the logo question out So And wondered highlights capture, I gets is to second but kind talked and your a or those type of kind XXXX? your any of into question market of by about of kind first and – of any of call

it probably I Jon. I'll then question kick off Greg can multi-megawatt and it Hey. probably the to the hand speak over M&A. side, to to on on Thanks,

with the pleased overall terms in XQ. of very I'm results So

I categories, in or the really the but in less scale also hyperscale interconnection, of the plus. diversity only think through shine the a on platform both not than megawatt

different than you very If the of EMEA were XX% markets each. that of kind run do the time through quick a a across was the EMEA, first megawatt more regions, did diverse. a it signings, north of deal There six

Americas, also So it and providers in these Paris, the for others and then London, are major both all the and the characters cast was of SaaS combination [indiscernible] my BXC mind. escaping And we Hillsborough, CSPs, Marseille the two and had in in of over hyperscalers it, call the last but and arena, And pleased And as then Sydney. project in CSP both hyperscale then Brazil our in down a top the with but another in I'm Chile, results second with last not had least, signed least, well. customer not a we Ashburn Santiago, top CSP. in three

diverse to really over on from major metros. piece. Greg contribution turn And to M&A it So pick the I'll numerous up

the pipeline in that Actually is some would of want that, as just Corey just around any look but recent of your you with change repeating you at XXXX customers dialogue momentum? comment, continuing to or confidence whether this kind Andy particular you, procurement gives or into activity there on

appreciate I This Jonathan. it. is Corey. Hey,

We that that broadly success the continuing. you tell I'll happy we Just had in just and sales the on XXXX. we're the funnel, momentum with see

bookings Andy region think regional for you meaning time mentioned sales our first EMEA I that there. for to we've and variances had, that largest the is

really was good that positive. So and

the we more those with might then industries, advantage of So work I work that home are more you and it. from regarding good are about us. are current feel that And think about quickly the doing ask taking

go to them our a are after maintain being still needs. got we're from little et they them. we're digital cloud, how it, And suffering the mission-critical to those media, strong cetera. kind seeing to continue prior of and industries we're their to And also those happy IT seeing supporting support And bit their and from so that were have we're that services then strength then about that pandemic,

growth and groups. about we're combine from we mentioned earlier, year-on-year as new So record it. And as really good success digital happy standalone, InterXion logos, from we the two

it So with sorry. real the you Hand Greg, to back Go ahead, Greg. over – funnel. to happy

Why well. you're Okay. Corey. Thanks don't I take Hope Hey it? Jon.

focused – are Like the the divestures, with think about go related. respect on in integrating which Greece. we than a Look, as tuck-in is we M&A, like we InterXion, Let guess Lamda somewhat as annual. let's to in few in M&A remain we've call Altus doing be me before, I first them while talk I IT Hellix and likely episodic with acquisitions Croatia order, like would we and to think can the said M&A more

prior years. I it's and over think our Connected about of the as we gave, We're say a guidance is was to the good billion news gotten capital assets is The not M&A to strategy. commentary. for various multi-year we of at us sell these over assets competitive quality coming right year the need don't said we look, environment assets. which space. we've But already $X.X We're Campus to through That our few past remains benefit part non-core think criteria markets. assets assets. we serve now, more a billion would asset capital criteria sell these us assets to we Look, the as few that. to divestitures sell look for non-core probably recycling, PBB And with dispose really and standalone dispose select with of our we just or as and are sales also we this follow capital our respect seek other to recycling could consistent of Today, to in additional our seeking program.

the fair tuck-in only will for going the to strategic, are deals as assets focused strategic And there that are these Again, [indiscernible] but and launching value that capital the and be are a and to assets pad combined can. we to try really assets sales the do the both regions. have and that development assets. for management extent these recycle provide program Croatia state highly continue receive going region. And of we'll for we more year look needed it expect a find we Again, forward. will acquisitions So further that's are this that where similar in deals like our ability the the strong to assets The be teams with their Greece these of the offer that's some going activity market provide connected at really in to we capital the way we two play. to

next The of Michael go from question comes America. Bank Funk of ahead. Please

Thank questions. Two all if for you Yes. could. the I

First, rent that? across down noticed the Can quarter-over-quarter. base I per square you on regions the comments foot GAAP step

Michael. Hey,

the megawatt to those On had piece, strong think there's And greater than talking I I So enterprise megawatt quarter-over-quarter, that and stat of about And that terms than SKU there deal bit in the comparison particular it's to better – in in the terms had in less than items reported volume. apples-to-apples fourth apples a – quarter back of sites. each a in of off because you’re a particular. on comparing pricing a a two oranges think note a in more structure of landing I little going megawatt you're an we results. we and in quarter market greater mostly power lower probably thought pretty second then more category, workloads network

recall And dropped a ago where down on build time. and Shell project megawatt lease. Ashburn we that then in did year a built suite paying for megawatts that built customer XX market, almost us Shell suites type large six may for increments over a a was a long-term in we the out or a we You two rather or still

because Pacific, this through only mean, that Shell. phenomenon and happen, that customer in for it I America And those scale the signing flowing also of and are particular they kind Strategically, realizing as a getting really of of customer advantage fraction really to actually North the of have, and all great and suites competitors structure the So our the flexibility Asia given types that of the economic banks I is land you're return on as market. already customers. takedowns desire the leasing runway and happened digital the think we cost portfolio for I of recognized those in that a entire already our our well in stats it's toolkit say timing strategic those with types not able a would that can and breadth tool transactions

Andy, the million quantify then from provided, to the us? sales, the maybe FFO it bridge quantify growth Can $X how And $XXX potential billion. for you actually you the that on impact

Yes.

capital feel on year. near-term of we reiterated XQ, FFO. same to It's XQ that really of call range. quarterly rhythm good the So last the cycle this lower end a We quantity core the it, to for contributor of bridging the, year as

of of the kind call same low-six for we that we are just type of If the end use of Just rate it the cap. did range, last hit using math. We $XXX sale. outright to million, kind rough cap a low mid

high it You X%. of million our could as $XX call NOI share and as about be count

Now of of have first those proceeds. you you year, that's redeployment didn't assuming sold of the and entirety assets the day any the

would to lieu point basis ballpark use those to the on kind based or paying is. proceeds, year-over-year either call appropriate that down redeploy our near-term and calendarization really our in growth equity, XX So expectations of XXX-ish a type I you when headwind it in of also debt

of Niknam Matt from go Please comes question next Bank. The Deutsche ahead.

just related Difficulties] someone pricing Thanks. in more the secondly, I been if in just an Hey within or seeing [Technical are the clarify. more to than they've but want and give deals hyperscale yet. competitive you're happened past? not And hyperscale you. could the any backdrop whether less competitive update U.S., then guys. on to getting Thank has

Sure.

So two elements.

prepared definitely had outperformance quarter we First in remarks. on base. some the We highlighted in fourth that the your

was, a control tailwind. it, out of that revenue was operational-related our of it just call but and Some some faster, of commencing FX was

dollar As plummet you saw the U.S. then XXXX. and retrench kind of into

the makes leg your as So that a for other dispositions, to have not capital think, for, comparison X, answer high here. rate of be that of I of of range of to have that and income. we little range small low we even of oranges executed immediate $X range when pretty at at apples million, run next loss to one-off we that yet a on billion, near-term any the recycling assets XQ than a sell a a that rate, The in upon the XXXX. million framed executed $XXX expect and cap – of question X.X asset you Hence, low the quantity the bit on between $X of an future you to end

equity the to non-core by to then and we parts selling in growing within that two, the dilution audience, the fund broader approximate using We're near-term, portfolio baked slower Just our think, lieu you a) growth. longer-term is of dilution offset Matt remind year-over-year is accretion. capital growth. that And of often our and or X%

So we're that of back off and growth year arriving absorbing at this half and last comparison outperformance that the at year-over-year dilution.

So laid that already not we've out. the it's incremental guidance to

the on Got it. And hyperscale?

for question. you was me Matt, Thank and first reminding the pricing your about the hyperscale question like.

But heard little your I'm a were what competitive some of Yes. it on bit margin. curious terms seen. take thing, just we've Things better. anecdote get get Pricing nature beginning was to you've because in and to maybe maybe the

Yes.

address platform XX now growth and XX think a opportunity to seen we're future-proof a where operational a of row to quarters continued competitors, – that the couple would metros, countries. any to offering fledging, in and their One, I especially and points, our outshine confidence us the set think pain say our points that string for in excellence their you've now, deliver data the newer we of really point competitors. have I offering across I a differentiated six hyperscalers continents, allows global

the been has our friend of So there. terms success trend in

to look you stepped percent pre-leased. XX-ish under now XXX about about development or quarter-over-quarter, if pipeline development, XX% think so our up megawatts still that I

of to business in lot imagine that. a hyperscale got there's You've

stepped been some I in pretty business is in think of if I'm not up returns that category, blushing not steady or the have – is off competitive. that there regions. saying certain this

do a Ashburn from well and serving our business U.S. is as where generate have colocation look and but our think more we're but proposition. I has you a competitive growth our us with is all market of in in I Singapore most market, U.S., like opportunities then returns pipeline differentiated – Clara if think hyperscalers even the particularly I our And challenged that the the think Frankfort, particular. where In value in market allowed international interconnection proposition Marseille, certainly we but like customers, really places the going our to Certainly those offering, is going, higher where markets like seeing in both Santa to markets and hyperscalers also more for value tighter well. Brazil and

good what those delivering saying So we're about customers. overnight, became easy feel to business that an hyperscale listen, not very but

of go from Markets. comes question Please Sadler The next KeyBanc Capital ahead. Jordan

just the the baked quarter, you the Good vacancy elsewhere? you sure the hitting into little on bit of in that on a sort that's into factored XX. saw decline Page you're fourth or I'm to churn X.X% sort you. Andy of if afternoon. nickel if elaborate on sequential Thank could pointing not that downtime

pipeline The pricing the of what to The market, quarter occupancy given actually retention of we It I pleased largest any in of part in I and to the we're our coming of such for a – would goes the They strong the both year opportunities amount in serendipitous Ashburn. being efforts first favor able we're quarter to across that and terms literally building economic back for ago. back X.X question, then Despite Yes. the in in to bit mentioned actually retention that that market megawatts refurbing re-leasing X.X the the newest megawatts, megawatts, And of see the focus already campuses get in capacity capacity those fourth had our quarter first out the the all say take and of in with market. the Ashburn. ended customer released in given – suites, we've going then hitting categories just pretty market. across above fourth tell year. I'll X. doesn't our call but back our potentially but suite likely really yet, year changed. to vacancy. the customer. physical pretty XXXX a of your other both our XX and numerous in it, quarter because they've non-retained the success we've XXs another megawatt. back was the megawatts to that us. We're both broader and can to us a mark-to-markets dynamic and under XXXX, haven't and I Of less come Jordan. It's suite customer until came our and a certainly pricing, success categories that first a is in is signed impact in challenges that called multiple it you, getting online colocation commenced we've for we're in both XX until The July got to than terms new convert with the of positive of And We had capacity that it that roughly productized to offering to

So it's get we in new new shapes the quarter. first that hit to really forms, taking certainly customers and temporal downtime and until XXXX the a

And the biggest of the XX-meg. chunk what's

XQ, from And hit churn departure? contiguous to contiguous, but and about this the bulk you You talk And mentioned the Is maybe not X.X that will – They're back that how just biggest overall? chunk. XQ guidance coming this then is XXXX already of been re-leased. $X.XX.

to So let there. try me few a unpack

the is X.X hall there's biggest but contiguous megawatts, the So halls. numerous

wanted – contiguous So which to wanted customers a value customer have if to numerous we halls, certain if that.

your of there. POD down. the Jordan you each the And the largest third right. the sorry can is going those together. driver step to question roughly together remind We're That can think, contiguous wrong X.X schedule of to then halls, string, but just of I or a three – that string POD. of second I looking think part $X.XX, in data so be could I'm at terms I'm me the or quarter-over-quarter is we here. six those of we can't part

churn. Just

So what it in XQ while X.X it? what if would expectation full-year just in at do and you maybe was then be churn think XQ, we're

going So basically in a like first that's less capacity churn implied capacity line. don't than greater a have a the than quarter megawatt it's churn. or looks megawatt And be I churn, to

you full-year the think the quarter the to for a megawatt call you quantities first in down full right can like the territory. XX math expirations. our the to ingredients on all proxy, have don't I on can a portfolio see it But give as use measurement megawatts of I you steps here. basis and XXs exact a the greater than XX%

go The Jefferies. next of question Please comes Petersen from ahead. Jon

thanks. Great,

Just a from me. couple

wonder if will it basis. on in that looks and anything quarterly how So the there about recurring a just year fourth should the be there's CapEx and elevated. we quarter I a next the little thinking trend

of Yes. the I Not say OpEx CapEx, recurring well. but some for just as would

some You're COVID of the seeing fluctuations.

million If in down million. $XX low it's the second recurring – to think $XX you as million I in $XX million the look at the quarter then XXXX, first as scheduled – quarter million step CapEx and $XX of of $XX XXXX,

did period So a a call it in have we little timing. catch-up terms bit of of

CapEx guidance same all numbers as of is Jon, the XXXX year. see, for roughly can you for our prior the current As

I or $XXX million, million. $XXX-ish So believe,

bit fourth of little catch-up we have a So quarter in there.

I customer some Just major [PEB to or space had when had second a and the capital converting only we’re refresh some had think and we – we items generation TKM] colocation, exited.

recurring of hits kind the – through not CapEx. hits that's it that first-generation So so

of analyze can't customers that's portfolio call forms. of our maturation a types and that different next think to shapes in it, just as I I customer of, But year. wouldn't you new product and –

You've to got look table appropriate our the full-year for for more guidance view XXXX.

the And rents of market And where just of Do sense than about then I All mark-to-market ask have mean, flat start over Are to the for a rents? start versus you this then, growth is to can again? right. I Okay. about leasing next know we I are off guys rents years? you in based greater to few being maybe where over your you're tenant. expectations talked this see about a year. your the rents. rent your But if point think do megawatt you have on market dynamics and spreads market sense relatively kind mean, I place one seeing, we what we grow year that a

in both renewal activity activity year. one look throughout spreads had seeing we as coming our the the the through cash relevant had are think, a to where data XQ. megawatt fourth And at that. I progress plus quarter there's couple Obviously to we we a consistent trajectory in positive points point the renewal

Santa through the there. and a of Some was renewal. in markets renewed that standout Clara stronger shining were

know but, We cash the language of numbers. mark-to-markets, have exact not guidance instead – slightly includes outlook I used for there our the we negative a

our think I language is conservative than last was it year. less

So we're better territory. into think moving I

I mark-to-market in XXXX, look both into you If mix place to in expiration relative and schedule think lease just leasing a we're at volume the better getting history.

previously contracts. you're mix and Portland. wrong because seeing much I market, say firmness part Virginia shells coming indicator one then U.S. in You component our greater I were, call not excuse to signings is pre-committed Santa of strengths good expirations at taking – Again, of Northern looking with diverse called least it and we call greater as over percent market titers the than but In at large a geographically, to a at our rates markets what the just pretty pricing. stability in the greater down Chicago, more – come, than you than high, at the would called back last being and but where also me, York, looking pretty I’m It's And saw the the Clara, saw not it Americas structure their megawatt sizeable a I other schedule. I And it the from New in in at both by category forward megawatt, mentioned new discretion. that down had which customers only goes pretty of in the X.X-ish the XX% international no Ashburn out even X%. greater from our than point. particularly a megawatt category, the And

grow you're for Marseille market standout sizeable then amount a and but markets. saw we're we to with not and see category is And strength megawatt well. star. market plus to a certainly of room least, doing adjacency. for them in continue than And as EMEA, Zurich, And megawatt were then negotiation particular Singapore, last activity for I desire there think not where really greater XXXX. that been has into the that a And So a plus going that

comes question Michael of Citi. next The go ahead. from Please Rollins

if probably could. things Curious, Thanks, two and good afternoon. I

to on quarters over Page yield down the And last bit. expecting. provide up movement moved a few you're just if development the is a like curious that XX the you take where America the little your is North first region little by The turn for bit. has seems it of supplemental, we EMEA

the near the to the that winner-take-all the a at larger a on years page. large Asia-Pac of of you customers of comments, based of do are level where more And beginning to the this number go separately, providers? business where next I think of Bill multiple a customers? these disproportionate on And take share provider Thanks. greater the demand one seeing evolution could embraced it of you of some center the couple and on of describing from see the select are activity some just choosing Or back data you the are that over data going of percentage in one call, the pipeline? your curious seeing that global And center partners. customers theme, curious made just

answer back the honors do to the then XX. second part of I’m cycle first, on Page development on question come questions Bill going the I'll give and to and numbers the

seeing definitely Thanks We're the the of business. the for a shrinking question. Yes. in number participants of

these we’ve last credible just social in particular but particularly the the demonstrated some unrest end of other feedback I but in our very think other clearly counterparty among that importance having of not the procedures that occurred has our from COVID, and around quarters. think the about strengths, several I received has partnerships our plays to the that on excellent partners, a of COVID hyperscalers

Latin City. self-managed to pipeline, continued we've then growth your the pre-leasing repetitive. And our but is this on here in I venture from us and not has one, But it San XX%. Michael on to activity volume customers only America, seen of few Not joint in roughly New there's has expect second a of in mean, intact and Chile remained is unconsolidated customer a including some stepped On the about probably schedule. megawatts. Brazil. terms a Diego, observations question, development in our second I second Mexico landing missing XX% it's tremendous think schedule, because The first, at experience up same into The this XXX.X the you're

with go little because our Americas shell market-by-market, muted which think share of the United Ashburn If is pre-leased a That outside will on in XXX% States. capital seeing larger schedule. was trend region you in the the this we and show new megawatts you're The accurate delivered capacity. I up larger and capacity of a going

a EMEA point markets the relevant seeing I the here, as north also more I or is year-over-year becoming call, just in rather diverse. And improvement still in the yields non-U.S. a so, off you're rattle I another of constant. In different think of think at beginning the hasn't in on the quarter thesis but data megawatt ineloquently also popped I think is markets Americas. the are very six was with EMEA, across a signings. And

same from the Amsterdam the markets happen. to on capacity see Zurich, think can phenomenon numerous coming I And with You is to going schedule online.

region happen continue Ours in as APAC the well. to

Thanks.

from comes question Suisse. Sami of Credit go ahead. next The Please Badri

you. thank Hi,

The first on question is interconnection.

really That's may us just adopted first give can the is, this. But the And hand? speculative little respective rapid then reported terms can the region? that the the one the high just is playbook as Andy, changed maybe of to I'll second a tends volume some changed come anyone pretty digital the backlog. we've the Has that You you and kind cycles it building of philosophy at on of construction one. address in Has seen leave color interconnection leasing that. with only backlog a Bill, And versus different that given how and in little very kind bit a pre-leases big bit? strategy mapping

want try the Bill, – same we'll you format. again, do to to do

strategy I the to go can first the second take You interconnection and question then back on details.

Sure.

is of anchor. markets don't really without the So a these strategy I in would an say new today we go that pre-lease into hand, any without

That's Mexico. what in So that's Chile. done what we've done we've in

Croatia Greece, to, anchor and buy I lease for an one us. may general, us our that good more But go we're and in – really with [indiscernible] they different. it customers want that's and one market, existing of think into Now than tell, businesses, in obviously to probably that so did to then looking so we

are existing with is are be with keeping a almost markets As always some is are just In far instances up the I existing concerned, hyperscalers. and furious. would expansions And as business used. customers. Those with existing Candace fast particularly to challenge those quite the in say the that demand markets

And then Sami your interconnection. question on on

our but a the offering or colocation because a in up interconnection I of stepped consecutive put the third with played quarter-over-quarter, quite than our basis. the strong believe Kong a in that part down revenue in a Seoul, of their I by one rich in full-year less growth around right asked with the digital. launched pleased this put and type carrier-neutral customers, signings and know are start, the would We you the fourth quarter look really and in of from interconnection a terms winter a called not in double-digits the quite also now megawatt in XQ the led of say quite offering and XQ. growth also – megawatt I characters in Osaka would experienced interconnection we standout are Singapore EMEA, at they or day type was was terms of but and quarter I Hong of Regionally say record most We've terms [indiscernible] of a the great verticals and up than these it certainly contribution. really signing Korea Yes, interconnection just post-landing role. the category. cast less question, was in row signings. but I was The fourth outsized and Those go quarter hand-in-hand with things EMEA first type category in into parcel signings So also region, quarter, type the often definitely similar I the prior corner. up colocation South it's of APAC some X% past. on category we industry-wise the interconnection this our that also it trajectory. are

days well early So category in that as great regionally.

network-oriented success both definitely megawatt it, the expanding in the, with more offering interconnection the enterprise call breadth of across seeing we're we're pleased the less more So and the product and than and markets a and category.

in have you've cadence you And Thank to it. actually looked the All that up phrase at follow-up is Bill expect pricing since the or each the and to slightly, guys right to And and The some or Do integrated respective kind least comparable that's the you marking mean, you, right. to pertaining is U.S. market. wrong of one at now quick just InterXion phrase stabilization mainly the I way it maybe market. pricing more Europe. pricing of and of right, it of Andy. this reflect looks to way

much referring kind to of which not and is and pricing the evolving to type consistent megawatt perspective. Europe? want – like going of changing or from I specifically. that I you in rate understand flat the really zero moderate You just guys pricing one on leases local see type guys or to starting And I'm are think at increasing, to is what's mainly a relatively

going a I But our performance, Thanks, think offering pass much this over do terms cross-sell in you're increased to in efficiency, on value to of focused of in we're prices think. Sami. customers That very way Chris Europe, But in if here going I'm a in elegant PlatformDIGITAL. I security, increased increased that global increase and platform to delivering as a second. very to asking, was

you We're one want the attuned market, demand bit our maybe to a nature match But and supply not relates it's touch episodic to very how roadmap product – another to and each has pricing a talk in customer Chris, needs little So that? to to market. about also do market.

the look EMEA, we’re grown highly connected PlatformDIGITAL, dynamics Connect Connect the of in Definitely within very we one rate continually our to remarks, a we platform to to attach Cross assets platform. how markets a And each communities And is Absolutely. value about align they exactly our prepared that with that that pricing of Cross out that things part global so these in forward, is aligned communities we can absolutely is watching complexity stated ensure appreciate with the interconnected But platform, customers particularly really but dense we value the happy it's increasing we'll see our the of platform continually we access based we're the our evolve but simplistic Bill continually which see at as getting market our our continually his of that our to more count interest I pricing EMEA. of network double XXXX customers constantly fashion. interest Sami. have going driving impressive. get on of within there and through it, in from to core removed pretty value these

getting constantly that very that the and and So they you'll see a value that watching in customers making something simplistic how But that the true play fashion. we're year achieved coming out are sure exactly it's the over need that. we

concludes turn today's Bill the over That like closing go portion remarks. to please of for CEO, Bill, to the call I'd call. his Stein question-and-answer back ahead.

up to our of Andrea. today like outlined Thank recapping on as our I'd last by highlights the here presentation. you, wrap call our quarter page for fourth the

strengthened a land of enterprise our much sheet, purchases delivering more world We our not and period the results, share First, interconnection with around U.S. and above that extending FFO our delivered financial of Europe offerings. their extremely we've set further we current solid strategic broader X% colocation growth platform, our enhanced product with last a per with beyond least, our and gateway reaching with And connections full-year Southeastern our needs the customers but initial into new customers, global runway strengthened customers extended hope We today's I'd nearly balance duration starts. but providing was debt development for team and our further guidance. Realty members the average our of who Thank center thank high-coupon family, to all equity. further particularly this see long-term have pandemic. and this and turning of in Digital preferred hope cost and while rules many the safe like year. later critical kept debt you conclude the stay midst healthy, to locking average ratcheting by world facility data in by digital we call attractive you I entire and frontline in again saying pricing you down to global of of on retiring capital in our person meeting you.

now you The may today's presentation disconnect. and Thank concluded. now for you conference has attending