Domestically, we acquired a large campus in Dallas that provides current income as well as inventory
for future data center development; our first development site in suburban Chicago, where we have
already experienced strong leasing activity; a new development site in New Jersey to meet the ongoing
demand in this key financial services market; and finally, two additional stabilized, single-tenant data
center facilities in Texas, and one in Denver.
To complement our acquisitions growth strategy, we invested approximately $747 million in our development
program and delivered nearly 907,000 square feet of new data center space in select growth markets
across our portfolio, of which 63.7% was pre-leased.
Financial Strength Continues to Drive Global Growth
Our strong balance sheet is an important reason
our customers consider us a stable, well-funded partner that can support their long-term data center
requirements virtually anywhere in the world. Therefore, managing our balance sheet, maintaining
our investment grade ratings, reducing our cost of debt and raising over $2.4 billion of attractively priced
capital from a variety of sources all played a critical role in growing our business in 2012.
Our balance sheet strength and excellent lender and investor relationships continue to provide us with
access to multiple capital sources globally to fund our domestic and international expansion. Early in 2012,
we accessed the bank term loan markets to take advantage of attractive five-year borrowing interest rates
and to place debt on foreign subsidiaries, which allowed us to naturally hedge our growing international
balance sheet. The resulting $750 million, multi-currency term loan has a $100 million accordion feature
and a current, all-in weighted average interest rate of 2.27%. In the second quarter, we completed
a $182.5 million Series F Cumulative Redeemable Preferred Stock issuance at a dividend rate of 6.625%.
For the full year 2012, we sold approximately 957,000 shares of common stock through our At-The-Market
equity distribution program for net proceeds totaling $62.7 million at an average price of $66.19 per share.
We currently have approximately $54 million of availability remaining on the ATM program. And, in conjunction
with our Sentrum portfolio acquisition in July we completed an $830.9 million common stock issuance
at a stock price of $72.25 per share.
We also successfully accessed the unsecured bond markets in 2012, with the issuance of $300 million
unsecured notes due 2022 with a coupon of 3.625%. Additionally, in January 2013, we were the first U.S.
REIT to access the Sterling bond market with a £400 million 12-year unsecured notes offering with a coupon
of 4.250%.
Maintaining our Leadership Position
Over eight years as a REIT, we have become a leading global provider
of data center solutions. Our best-in-class data center platform continues to benefit from growing worldwide
demand for data center space from a diversified customer base. Our ability to be the industry consolidator
and expand our high-quality portfolio through both acquisitions and development continues to provide
substantial cash flow growth from a strong leasing pipeline. All of this is made possible by our experienced
management team, which features a unique combination of technical expertise and disciplined investment
management grounded in a commitment to maintaining a strong balance sheet.
The foundation of our leadership position begins with the support of shareholders like you. We greatly
value your confidence and are pleased to share our 2012 results with you.
With thanks,
Michael Foust
C h i e f E xe c u t i ve O f f i ce r
Dennis Singleton
C h a i r m a n
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