Wholesale data center developer DuPont Fabros Technology has signed new customer leases at its data centers in New Jersey and Silicon Valley, the company said today.
Two new tenants have signed leases totalling 1.71 megawatts of critical power - about 8,120 square feet of raised-floor technical space - at the NJ1 facility in Piscataway, New Jersey. In California, a single tenant has leased 2.28 megawatts of power (11,000 square feet of space) at the SC1 facility in Santa Clara.
DuPont Fabros also announced that it has opened Phase II of its CH1 data center in Elk Grove Village, Ill. The second phase of the massive facility is 79 percent pre-leased, with 57 percent of those leases commencing on Feb. 1. The opening follows an active fourth quarter in with DuPont Fabros (DFT) opened two new data centers (SC1 and the first phase of ACC6 in Ashburn, Virginia) totalling 31.6 megawatts of critical power.
"Over the past 15 months we have opened five new developments comprising 85.8 megawatts of critical load and leased about half of this space," said Hossein Fateh, President and Chief Executive Officer of DFT. "Our primary focus in 2012 is to lease our remaining available space. The timing of corporate decision-making by potential tenants to execute leases is not always predictable, but we remain optimistic regarding the long–term demand for our strategically located wholesale facilities."
Focus on Leasing Space
The pace of leasing at the New Jersey and Santa Clara facilities is being closely watched, as the DuPont Fabros facilities represent the largest chunks of completed wholesale data center space in competitive markets. NJ1 is now 34 percent leased, while 25 percent of the space is filled at SC1.
During the full year 2011, the company signed 14 leases totaling 24.92 megawatts of critical load and 133,716 raised square feet, with an average lease term of 7.9 years and approximate contract value of $428 million.
For the quarter ended December 31, DuPont Fabros reported earnings of $0.12 per share compared to $0.10 per share for the fourth quarter of 2010. Revenues increased 13 percent to $74.4 million for the fourth quarter of 2011 over the fourth quarter of 2010, primarily due to new leases commencing at data centers in Virginia, New Jersey, Chicago and Santa Clara. Funds from Operations (FFO) for the quarter ended December 31, 2011 was $0.37 per share compared to $0.33 per share for the quarter ended December 31, 2010.
DuPont Fabros established an FFO guidance range of $1.31 to $1.51 per share for the full year 2012, establishing a midpoint about 20 cents lower than the company's full year 2011 FFO of $1.61. DFT said the reduction was due to a tange of factors, including the impact of lower capitalized interest expenses. No new data center construction is scheduled for to commence in 2012, and the company's capitalization policy is to stop interest capitalization when projects are placed in service.
After the guidance adjustment, shares of DuPont Fabros were about 9 percent lower in after-hours trading.