Equinix, Inc. (Nasdaq: EQIX), the global interconnection and data center company, and Digital Realty Trust, Inc. (NYSE: DLR), a global provider of data center solutions, announced today they have entered into agreements for five data center lease renewals.
Equinix will renew existing leases with Digital Realty for five data center properties located in Chicago, Dallas, Los Angeles, Miami and Washington, D.C. All five of the leases were negotiated at market rates and include 15-year initial terms from the current lease expirations, as well as two approximately 10-year renewal options at pre-negotiated rental rates.
“We have had a long-standing and productive relationship with Digital Realty and are pleased to have negotiated mutually beneficial lease renewal agreements over effectively a 35-year period on these five assets at rates in-line with our expectations,” said Howard Horowitz, senior vice president, Global Real Estate for Equinix. “This represents an important step in managing our real estate portfolio and provides greater operational flexibility, predictability and consistency for key data center assets.”
“These early renewals represent a win-win for both companies, as they provide long-term operational certainty to a strategic customer, while simultaneously unlocking a portion of the embedded rent growth within our portfolio,” commented David Caron, senior vice president, Portfolio Management for Digital Realty. “Furthermore, the cash rental rate uplift also provides a real-time read on the health of current data center pricing.”About Equinix Equinix, Inc. (Nasdaq: EQIX), connects more than 4,000 companies directly to their customers and partners inside the world’s most networked data centers. Today, businesses leverage the Equinix interconnection platform in 31 strategic markets across the Americas, EMEA and Asia-Pacific. www.equinix.com. About Digital Realty Digital Realty Trust, Inc. focuses on delivering customer-driven data center solutions by providing secure, reliable and cost effective facilities that meet each customer’s unique data center needs. Digital Realty’s customers include domestic and international companies across multiple industry verticals ranging from financial services, cloud and information technology services, to manufacturing, energy, health care and consumer products. Digital Realty’s 127 properties, including three properties held as investments in unconsolidated joint ventures, comprise approximately 23.7 million square feet as of June 30, 2013, including 2.8 million square feet of space held for development. Digital Realty’s portfolio is located in 32 markets throughout Europe, North America, Asia and Australia. Additional information about Digital Realty is included in the Company Overview, which is available on the Investors page of Digital Realty’s website at http://www.digitalrealty.com. Forward Looking Statements This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, the challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenue from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; and other risks described from time to time in Equinix’s filings with the Securities and Exchange Commission. In particular, see Equinix’s recent quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release. Equinix and IBX are registered trademarks of Equinix, Inc.