This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

DuPont Fabros Technology's CEO Discusses Q2 2011 Results - Earnings Call Transcript

Additionally, this call contains non-GAAP financial information, of which explanations and reconciliations to net income are contained in the company's earnings release issued last night, which is available in PDF format in the Investor Relations section of the company's corporate website at www.dft.com.

To manage the call in a timely manner, questions will be limited to 2 per caller. If you have additional questions, please feel free to return to the queue. I will now turn the call over to Hossein.

Hossein Fateh

Thank you, Chris, and good morning, everyone. Thank you for joining us on our second quarter 2011 earnings call. As noted in last night's press release, we again delivered solid financial results, which Mark will discuss later in the call. We continue to strengthen our business and increase shareholder value. Our focus remains on leasing, development and providing our tenants with the utmost in customer service. The company's continued success would not be possible without the valued contribution made by everyone at DFT. I thank each of you for all your hard work and dedication.

First and foremost, our focus is leasing. So therefore, I would like to begin with a leasing update. Microsoft comprises approximately of 18% of the company's annualized net base rent as of June 30. We reached an agreement with Microsoft to extend a 9.6 megawatt lease for an additional 8 years. This lease was scheduled to begin to expire in 1.6 megawatt increments in 2012. The new lease begins to expire in 2020 and continuous through 2025. The renew represents over 40% of all current critical load they have with us. We are very pleased that they have decided to extend their relationship with us. Yahoo! comprises approximately of 19% of the company's annualized base rent as of June 30. Their recent lease expiration range from 2012 through 2019. Yahoo! informed us in late June 2011 that they will not renew one of their leases representing 3% of the company's consolidated annualized base rent as of June 30, 2011. This lease expiration represents approximately 19% of all current and critical load they have with us. This building is located in Western Virginia, a very fiber-rich area. We are actively marketing this space and are optimistic about its leasing prospects. This lease will expire on April 30, 2012. Yahoo!'s next lease is scheduled to expire in the third quarter of 2015.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,055.87 -116.81 -0.68%
S&P 500 1,982.77 -11.52 -0.58%
NASDAQ 4,508.6880 -19.0010 -0.42%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs