Equinix Renews Leases for Five Data Centers with Digital Realty
REDWOOD CITY, Calif. & SAN FRANCISCO -- October 21, 2013
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.”
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.
International Business Exchange is a trademark of Equinix, Inc.
Melissa Neumann, +1 650-598-6098
Pamela Matthews Garibaldi, +1 415-738-6500
Katrina Rymill, +1 650-598-6583
John J. Stewart, +1 415-738-6500
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