Digital Realty Trust, Inc. (DLR) Q2 2012 Earnings Conference Call July 25, 2012 13:00 ET Executives Pamela Garibaldi – Vice President, Investor Relations and Corporate Marketing Michael Foust – Chief Executive Officer Bill Stein – Chief Financial Officer and Chief Investment Officer Analysts George Auerbach Jamie Feldman Jonathan Schildkraut Jordan Sadler Rob Stevenson Michael Bilerman Jonathan Atkin Paul Morgan Presentation Operator
Previous Statements by DLR
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For a further discussion of the risks and uncertainties related to our business, see the company’s Annual Report on Form 10-K for the year ended December 31, 2011 and subsequent filings with the SEC, including the company’s quarterly reports on Form 10-Q. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.Additionally, this call will contain non-GAAP financial information, including funds from operations or FFO, adjusted funds from operations or AFFO, core funds from operations, earnings before interest, taxes, depreciation and amortization, or EBITDA, adjusted EBITDA, same-store net operating income or NOI and same-store cash NOI. Digital Realty is providing this as supplement information prepared in accordance with generally accepted accounting principles. Explanation of such non-GAAP items and reconciliations to net income are contained in the company’s supplemental operating and financial data package for the second quarter of 2012 furnished to the SEC, and this information is available on the company’s website at www.digitalrealty.com. Now, I’d like to introduce Michael Foust, CEO; and Bill Stein, CFO and Chief Investment Officer. Following management’s remarks, we will open the call to your questions. Questions will be limited to one per caller. If you have additional questions, feel free to return to the queue. If we’re unable to take all of your questions on the call, we’ll be happy to discuss them with you offline. I will now turn the call over to Mike. Michael Foust – Chief Executive Officer Great. Thank you, Pamela, and welcome to the call, everyone. In response to last week’s leasing results press release, our primary goal today is clear up any uncertainty around the state of our industry and our business. After my brief introduction, Bill will discuss our 2012 guidance, second quarter finance results, and recent capital market activities. Following his remarks, I’ll provide an overview of our operations as well as an update on our activity in major markets before opening the call for your questions.
Like most global businesses, we are mindful that current uncertain economic and political environment. However, we believe that data center sector will continue to be a growth area in the context of the broader economy. In fact, our business has benefited significantly from a number of recent trends since the downturn in 2008, including the outsourcing of data center requirements by corporate enterprises, including large financial institutions, as well as the growth of managed service providers.With our track record of reliability of financial resources as well as our design and construction expertise, we continue to attract enterprise customers especially financial institutions are looking for a data center provider to have mission critical applications. In addition, we are attracting many new customers to DLR. We’ve consistently said that the great opportunity for our business is to convert the large enterprise users from building their own data centers to outsourcing that function to DLR. While this has contributed to a longer sales cycles in the short term, in part due to extensive procurement processes as many of the larger institutions, it does not represent a reduction in demand. We firmly believe that providing long-term data center solutions to these customers deliver sustained value and growth for our business and for our shareholders. Read the rest of this transcript for free on seekingalpha.com