This Day On The Street
Continue to site
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

DuPont Fabros Technology Management Discusses Q2 2012 Results - Earnings Call Transcript

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 2012 earnings call.

As noted in our press release, we again delivered solid financial results, and also raised the midpoint of our guidance. Mark will discuss this in greater detail later in the call.

Leasing continues to be our primary focus. So I would like to begin with an update.

Since our first call, quarter call, we signed 1 new lease for 1.14 megawatts in Santa Clara. As of today, SC1 is 44%leased and in line with our expectations. New Jersey remains at 36% leased. Chicago Phase II at 79% lease. Phase I at ACC6 at 83% leased and Phase II of ACC6 is 67% pre-leased.

Our non-stabilized properties are 59% leased.

We believe our year-end goal of being 70% leased on average for all the development properties remain obtainable. VA3, a 13-megawatt facility in Western Virginia is now 56% least. It has a lower power density per square foot compared to our recently developed facilities. This is ideal for cloud to resellers and enterprise tenants who do not require intense environment. There is good traffic for this space. We expect lease-up to occur over the next 12 months. Year-to-date, we have leased 24 megawatts of critical load. This compares with 25 megawatts in all of 2011, and 23 megawatts in all of 2010. Year-to-date, we have commenced leases totaling 26.3 megawatts as compared to 13.5 megawatts for the entire year of 2011.

As I have said many times, leasing is always lumpy. Our sales team is tracking considerable demand in all our market, which could fill up our inventory. However, we continue to see enterprise businesses taking longer to make decisions, particularly in New Jersey. This is consistent to what we have stated over the past year. Power pricing in New Jersey has historically been about $0.12 per kilowatt and is now about $0.08 per kilowatt. This has resulted in some Internet-focused tenants considering New Jersey for their data center requirement. If power pricing continues at this level, it will likely increase the interest from a broader range of tenants for New Jersey.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.75 -1.10%
FB $117.53 0.69%
GOOG $693.00 0.29%
TSLA $240.75 -2.80%
YHOO $36.61 0.06%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs