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 third quarter 2011 earnings call. As noted in last night's press release, we continued to deliver solid quarterly financial results which Mark will discuss later in the call. Since leasing is our primary focus and catalyst for growth, I would like to begin with the leasing update. Since the beginning of the first quarter to date, we have executed 5 leases totaling 6.7 megawatts of critical load. We have signed 3 leases within the third quarter totaling 5 megawatts. One lease is for 570 kilowatts in Phase I of New Jersey and is with the new social media tenant. The second lease is for 540 kilowatts in Phase I of ACC6 that is with an existing Internet tenant. The third is a pre-lease for 3.9 megawatts. This pre-lease is with an existing tenant in our Chicago facility. To date, we have pre-leased 71% of Phase II of Chicago expect to achieve a 12% on leverage return. We have no secured debt on the facility. Currently Chicago, is the market that is leasing up the fastest. Our data center provides tenants who need to be in the Midwest with an optimum and scalable solution to their requirements while being able to serve a vast geographical area.
Subsequent to the third quarter, we signed 2 leases at New Jersey totaling 1.7 megawatts. 1 lease is for 1,140 kilowatts and is with a new cloud hosting tenant. The second lease is for 570 kilowatts that is with a new financial services tenant. These new leases bring New Jersey to 34% leased; ACC6, 8% leased; Chicago Phase II, 71% pre-leased; and Santa Clara remains at 13% leased.Since the beginning of the year, we have executed 13 new leases totaling 23.6 megawatts of available critical load with an average lease term of 7.9 years. To date, we have leased more megawatts in 2011 than we did in all of 2010. Our sales and leasing teams have been working diligently to establish new relationships with perspective tenants, particularly in New Jersey and Santa Clara area. We continue to nurture and expand upon existing relationships in Ashburn and Chicago. We're tracking reasonable demand in each of these market as evidenced by the amount of tours and interest by perspective tenants. On October 1st, we delivered SC1 in Santa Clara. The majority of the available data center states in this market is within SC1. Tenants are drawn to Santa Clara because of their reduced power cost Silicon Valley Power provides when compared to the surrounding areas. We remain confident with the demand in this market and believe in the long run where in excellent position to capitalize on it. Due to some recent activity within Santa Clara market, we're seeing slightly lower rents within the range of 10% to 12% unlevered return in Santa Clara. We have no secured debt on this facility. Back to Northern Virginia, we delivered ACC6 on September 1. Ashburn Corporate Campus allows for tenants within the existing building to organically grow into the newly delivered building. We can do this without duplicating any personnel enabling cost savings for our tenants. We're seeing our current tenants demand grow and we are also seeing new tenants come to the market. We expect to achieve a 15% unlevered return on this asset. Wholesale data center outsourcing remains a logical and cost effective solution from those companies. Having just-in-time inventory enables a company to better plan for their data center requirements. It also optimizes the company's available capital. We look to provide our tenants with the most reliable, scalable and cost efficient computing environment in the industry. We believe there is sufficient demand in all 4 markets to absorb our inventory. We have an outstanding track record of leasing available space and we're confident in our ability to lease the space we have. Read the rest of this transcript for free on seekingalpha.com