DLR conference call

from Seeking Alpha transcripts, the highlights of DLR conference call:

>>The sales team currently is engaged with well over 4 million square feet of new customer prospects, representing over 420 megawatts of data center demand. We continue to see a significant lack of supply necessary to meet this demand and DLR is one of the few data center provider to actively billing speculative Turn-Key space across our major markets. The depth and experience of our technical team makes DLR a preferred infrastructure solution provider for many large corporations and system integrators.

On last quarter's call, I discussed results of a study we commissioned that focused on the current drivers demand for datacenters in the U.S., including immediate and longer term growth prospects. Consistent with these results, and despite the challenging economic environment, Fortune 1000 companies, Internet enterprises, and the system integrators continue to make significant investments in IT infrastructure. And this reflects the critical nature of these assets to today's corporations. Our teams are experiencing strong demand in the major markets in the U.S. and Europe especially for our Turn-key product.

I would now like to return to our – like to turn to our revised guidance for 2008. With better visibility towards our full year 2008 results, we are raising FFO guidance by $0.05 to a range of $2.40 to $2.50 per diluted share in unit. The new guidance reflects a shift in our leasing mix towards our Turn-Key Datacenter solution

Will Marks – JMP Securities

Great. Okay. And then, general thoughts, Will, on the rate side of things. Are rates continuing to go up for datacenter space in general and along the same lines, I've heard that in Silicon Valley there's basically – or San Francisco south, there's very little, if any, datacenter space available. Can you comment on that?

Bill Stein

Sure. We're seeing – we really sell out pricing in almost all of our markets today. It varies – our rates that we're quoting on our per square foot basis vary by quarter-by-quarter, especially for the Turn-Key because of different utilizations and the way the spaces are laid out. On a kilowatt – per kilowatt basis, rates have gone up for us over the last four quarters. On an accumulative basis, about 30%. Now we don't see that trend continuing quite that same pace, but what we're seeing good trending and pricing on a kilowatt basis, and we think we'll continue to see good returns.

On Silicon Valley, going to your question there, right now there's not much space at all available and we're actually working on a couple of buildings on our Space Park Drive site that will be coming on online here in the next nine months – six to nine months or so. – So, we're hoping to get ahead of the market there for that. There are some large projects that are on the planning side that I will be coming online second-half of '09 and 2010, but right now there's definitely a lack of supply.

Jordan Sadler – KeyBanc Capital Markets

Okay. And then, could you talk about markets and where you're seeing the most significant dislocations in terms of demand outweighing supply? Just give maybe your – give it a rank currently.

Michael Foust

I mean this isn't exactly in exact rank order but we're seeing Silicon Valley and these are all kind of favorable from our perspective in terms of high demand and lack of supply right now. Chicago certainly. We're seeing it in – well, even more in Dallas now is starting to turn. But even more so, Northern Virginia, a very strong market for us. New Jersey and Northern New Jersey, and then Paris and London. So, those markets are probably the ones that have kind of the strongest supply-demand imbalance in our favor.