Good day, and welcome to the Digital Realty's First Quarter 2018 Earnings Conference Call. All participants will be in listen-only mode. Due to scheduling constraints, this call will be a concluded after 60 minutes. Please note this event is being recorded. At this time, I would like to turn the conference over to John Stewart, Senior Vice President of Investor Relations. Please go ahead, sir.

Thank you, Denise. The speakers on today's call will be CEO, Bill Stein; and CFO, Andy Power. Chief Investment Officer, Scott Peterson; and Chief Technology Officer, Chris Sharp; and SVP of Sales & Marketing, Dan Papes are also on the call and will be available for Q&A. The management may make forward -looking statements including guidance and the underlying assumptions. Forward-looking statements are based on expectations that involve risks and uncertainties that could cause actual results to differ materially. For a further discussion of risks related to our business see our 10-K and subsequent filings with the SEC. This call will contain non-GAAP financial information. Reconciliations to net income are included in the supplemental package furnished to the SEC and available on our website. Before I turn the call over to our CEO, Bill Stein, I'd like to hit the tops of the waves on our first quarter results. First of all, we set a new high watermark with quarterly bookings north of $60 million. Second, we beat consensus by nearly 4%, driven by consistent operational out performance and we've raised guidance by $0.05 at the low end. Third to beat in race, flows through to cash flow and we remain on track to deliver double-digit AFFO per share growth in 2018. Last but not least, we expect to achieve this growth while maintaining our target leverage and self-funding our 2018 capital plan through internally generated cash flow from operations and proceeds from asset sales. And with that, I'd like to turn the call over to Bill.

Thanks, John. Good afternoon, and thank you all for joining us. With our Annual Shareholders Meeting coming up in a little less than two weeks, I'd like to begin today with a discussion on governance, here on page 2 of our presentation. At our Investor Day in December, we shared with you our plan for providing shareholders the ability to amend our bylaws. I'm pleased to report that in early March, our board approved a resolution giving any 3% shareholder or any group of up to 10 shareholders comprising a 3% stake for three years the right to propose binding amendments to the company's bylaws. We believe that with this step, we are joining a small group of other high-quality REITs and leading the industry with sound corporate governance practices. In keeping with our commitment to ongoing board refreshment, we also disclosed in our proxy that longtime Director, Bob Zerbst will not be standing for re-election at the Annual Meeting. In addition to his role on the board, Bob served as Chairman of the Compensation Committee from 2012 to 2017, and as a board representative on our internal investment committee for the past four years. He was also Chairman of the Investment Committee at CBRE Investors, when the initial investment in GI Partners, our private equity predecessor was first approved. On behalf of the entire board, I'd like to extend our thanks to Bob for his years of service to the company. The governance principle behind our board refreshment philosophy is balancing fresh thinking and new perspectives with experience and continuity. Following Bob's departure, 8 of our 10 directors who have joined the board within the past six years, whereas our Chairman and former Chairman have both served on the board since our IPO. I would also like to remind…

Thank you, Bill. Let's begin with our leasing activity, here on page 7. We signed total bookings for the first quarter of $61 million, including a $7 million contribution from interconnection. This marks the fourth quarter out of the past five we've delivered bookings north of $50 million. We signed new leases for space and power totaling $54 million during the first quarter, including a $6 million colocation contribution. The weighted average lease term on space and power leases signed during the first quarter was approximately eight years. We saw robust and balanced performance of lease signs across every month in the first quarter. We are seeing strong demand from current as well as new customers and we signed 32 new logos during the quarter. Demand across cloud customers remains strong, with many of the leading global cloud service providers expanding with us. A leading Chinese cloud and technology service provider expanded with us in Ashburn just a couple of quarters after first landing with us in that market. We are pleased with our progress in the enterprise segment, landing broad and diverse customer engagements. For example, one of the world's largest media entertainment technology and content companies needed immediate access to enterprise quality data center capacity in the red-hot Northern Virginia market to support a new complex cloud-connected application. The customer cited three reasons for selecting Digital Realty; our track record of operational and financial resiliency; the quality of our product and speed of delivery, capacity when and where they needed us; and ease of contracting. And National Cancer Research Institution selected Digital Realty based on our proven track record of operational excellence as well as our interconnection solutions. Their critical business applications will be migrating from another provider and will reside within our secure campus environment in Phoenix.…

My pleasure, Mr. Power. We will now begin the question-and-answer session. We ask that you limit your questions to one and one follow-up. The first question will come from Jordan Sadler of KeyBanc Capital Markets. Please go ahead.

Thank you and good afternoon. First one just regarding the pace of leasing, I think this looks like one of the best quarters I can remember. And it comes on top of, as you pointed out, two pretty strong quarters, it happens to say lumpy but healthy on page 7. But this seems like leasing has gotten much more stable over the past few quarters. And so congrats on the execution, but I'm curious will we see increased volatility going forward and if so what is the bias, would it be upward volatility or downward?

Hey. Thanks, Jordan. You know we don't give bookings guidance and I sense from your question that you're trying to obtain bookings guidance. We're not going to change our policy. But as you might imagine, we're pleased with the trajectory over the past several quarters. You're correct, this is a record quarter. We've had great volume, also a very strong mix in products, logos and geographies. If you look back over the last 12 months, bookings have been trending up and that's how we obviously would like to keep it. We're confident in the growth of the business, long term growth of the business, so I would expect that quarterly volume will follow that as the current funnel is very healthy and we are confident that we can build on our recent momentum.

Okay. And then just moving on to the development pipeline which seems to be gaining some momentum as well, maybe you could speak to construction costs, you're quite a sizable developer in the scheme of things and construction costs appear to be rising as a function of increased demand, but also tariffs and skilled labor demands et cetera. How do you expect these rising construction costs to manifest themselves in the data center sector in your portfolio over the next couple of years, are rents going to come up a lot, because customers can bear the increases or will returns come down, what do you think?

Let me break that question apart. So first of all, I think that because of our designs, we've been doing an excellent job of taking costs out of the product, but I will say, I think it's going to be difficult to take much more cost out without affecting the residual value of the real estate. We have put in place something called our VMI program, which stands for vendor managed inventory. We have that in place for all of our major suppliers. And what that is, is a three-year contract where we've been able to lock in pricing for major items like generators, switchgear, UPS module. And importantly, we put that in place before the tariffs were put in place. So our pricing at least for the next three years won't be affected by rising steel prices. I think the other factor that's important for everyone to keep in mind on the call is that we're the only data center company with an investment-grade balance sheet. And I think it's not just the cost of our debt, but the way Andy has managed the balance sheet that gives us a distinct competitive advantage in not only a rising rate environment but, currently, an environment that has an inverted yield curve. So most of our debt is fixed and it's been termed out for quite a period of time. We've also been able to de-risk the labor inflation that I think we will certainly see by keeping our contractors very busy and on site. It's another one of the benefits of having a global sales funnel and buying in bulk. In terms of what's going to affect data center rents, we think that's most directly affected by supply. And if you think about the barriers to entry, it's a restriction in land, which we see certainly today in Silicon Valley and we think we're going to see it in Loudoun County in a few years. In some markets, you see a NIMBY sentiment, not in my backyard. We think that higher debt costs and build costs will also represent barriers to entry. So while I don't think that, with the exception of Silicon Valley, you're necessarily going to see rent growth in the very near term. I think that you'll definitely see it over the intermediate term.

The next question will be from Jonathan Atkin of RBC. Please go ahead.

Thanks. So, a question about kind of the demand that you're seeing going forward, the scale demand. And is that basically upsized requirements by traditional scale customers or are you seeing a broadening of the types of customers, either by vertical or by region, that are interested in doing most of megawatt deals? And then, following on to the last answer about the developments. The development pipeline, just given the volume and demand out there, do you feel that you're appropriately staffed or would you consider having a little bit more work-in-process to accommodate what seems to be kind of a rebound in demand back to sort of 2016 levels? Thanks.

Jeff, I'm going to take the first part of that question and I'll ask Andy to take the second part of it. The requirements – and I've said this on several calls, but the requirements have definitely grown larger over the last several years, but on top of that, and you mentioned in your question, the demand is also broader. It's more than just a handful of CSPs. And we're seeing it out of social media, we're seeing it out of global cloud, not just U.S.-based CSPs, we're seeing it out of the SaaS players and we're seeing it out of multinational hardware and software companies. Maybe going back to Jordan's question though on the level of bookings. We do need at least one, what I would say, major anchor transaction every quarter to hit $50 million. If we have more than one, there will definitely be upside. If we don't hit that one, there will be downside. But I would say based on the volume that we see in our pipe, I'm confident that we'll get one. But nevertheless, it's still a lumpy business and that you see that with the 4-megawatt deal that that we announced that we signed in Amsterdam this month. But I can tell you that on balance, we're very encouraged by both the breadth and the depth of demand and we're looking forward to what the balance of this year has in store for us. Andy, why don't you take the second question of Jonathan's?

Sure. Thanks, Jonathan. So your question related to appropriately stocking the development pipeline. It's obviously a very fine line as that we've seen from our competitors and we've experienced first-hand here at Digital in the history of our company. I would say we have a very robust capital planning function with a regular cadence, and we're doing our best to line up the supply and demand as the best we can. I think we do have some competitive advantages on many fronts. When you have a large installed customer base that is looking to grow in those markets with a preference to grow in adjacency to their existing loads, I think that translates into incremental wins that it's harder for a new competitor or a smaller provider to really attack. If you look at our pipeline in total, it's almost 130 megs, north of 40% pre-leased. That's obviously book ended by some speculative development capacity and also fully pre-leased activity. If you just look at Northern Virginia, which is north of 60 megawatts and that's north of 60% pre-leased, I can tell you that remaining, call it, 23 megawatts, 24 megawatts that isn't preleased, we're almost playing Tetris with the customers in terms of lining their timelines to move in with our delivery schedules. So, we're definitely tiptoeing that fine line and I think we have the right balance for right now.

The next question will come from Colby Synesael of Cowen & Company. Please go ahead. Colby Synesael - Cowen & Co. LLC: Great. Thank you. One, with the DuPont integration largely behind you, I was curious about your appetite for M&A, particularly with some news out there that there could be some assets that are out there for sale, including some in, I guess, Brazil. And then secondly, your – what is it – your retention ratio was 58%, I believe, in your disclosures. That's below where it's typically been. I was wondering if you could just provide some color as to what's behind and then what your expectations going forward would be. Thank you.

Yeah. Hi, Colby. Scott here. I'll take the first part of that question. Yes, we continue to look for other M&A opportunities. As you know, we're looking at everything that's out there or even not out there on the market. As always, we're focused on opportunities that have some strategic value to us, but as always, we are going to be good stewards of our shareholder capital and be disciplined as we pursue those opportunities.

Hey, Colby, just add to that, though. When you look at where the share prices are today and the multiples, they're obviously down from where they were a quarter or two. And that on the margin may make M&A less likely. And I think you couple that with where some of the recent trades occurred, which were at fairly lofty valuations. And I think that might argue that there would be less M&A near-term. Andy, do you want to pick up the second part of that question?

Sure. So I think you were pointing to the retention assuming just on the Scale TKF product, sub-60%. That was largely related to some churn. I think we'd called out a call a quarter or two ago in the Boston market an enterprise customer that was looking to consolidate some capacity. Now not all churn I would say is a bad thing. That provides an opportunity to take back space and re-productize that larger footprint into a colocation offering and expand our capabilities in the Boston market in particular. By and large, other than the episodic customer moving from here and there, we do have some positive churn events where customer is just outgrowing a traditional colocation environment and wants to grow with us on a campus. So a customer moving from one part of their portfolio to another can actually be a positive event. And on the colo side, the other major product domain, we actually had, maybe not record, but very high retention, low churn this quarter call it north of 90% retention on those capacity.

The question will be from Simon Flannery of Morgan Stanley. Please go ahead. Simon Flannery - Morgan Stanley & Co. LLC: Okay, great. Thanks very much. So you talked about the healthy pipeline a few times. Are you seeing any benefit from tax reform in terms of IM enterprise spending on expansion? Any more confidence there or is that something that you think might feather in later in the year? And on the hyper-scale side of it, is there any change in the mix between what they're self-performing, doing themselves versus what they are using you or others for in terms of outsourcing to build? Thanks.

Hey Simon, it's Dan Papes, thanks for the question. From the pipeline perspective, you're right. As we've termed it here in our discussion today, it's very healthy. We're really pleased with it. We're pleased with the second quarter, and as we take a look at the remainder of the year. We really can't trace any of it directly back to tax reform. It may be a small factor in there, but there is nothing obvious about the demand we're seeing from enterprise or the CSPs related to tax reform. We like to think it's just a great job being done by our sales team, but no really there's just no trace back to that that we see. I'll let Andy take the second question. Thanks, Simon.

Sure. In terms of do-it-yourself versus seeking a professional provider like the Digital Realty, I think by and large we've seen more of a trend from even very highly sophisticated, well-capitalized technology customers to come to a Digital especially in the major markets where we have full product offering in terms of space power and also on the connectivity side and where we have land holdings to allow for their business to grow for years to come. I can just look at the mix of our largest signings across the portfolio that we had several signs this quarter that were in the 2 megawatt to 3 megawatt size, several in the 4 megawatt to 6 megawatt. I think 6 megawatt was the highest, in total 6.5 megawatt. And it was from a smattering of customers, different customers, U.S. multinationals, top five cloud service providers, other large sophisticated enterprises that could have the ability to build their own data center and they've come to us for our capabilities in the global platform we deliver to them.

The next question will be from Michael Rollins of Citi. Please go ahead.

Hi. Thanks for taking the questions. Couple things if I could. One is, if you go back to, I think it was slide 4 in the deck. You shaded the core-plus range of 9% to 12% for developing yield. And I'm curious how that fits into the current year guidance for developing yields of 10% to 12%? And what does this say about the future direction of the aggregate development yields for the Digital portfolio?

Thanks, Michael. This is Andy. I think the genesis of this chart was really to try to provide an illustrative view as to incremental risk takes on incremental reward and not an effort to change our guidance table, which we reiterated on the 10% to 12% for unlevered cash returns on our $1 billion of development spend. I think we obviously tilt towards the 10% when projects are de-risked. De-risk can happen from significant amount of pre-leasing or activity, and we tilt towards the higher end of that range when there's more risk in the equation.

The next question will come from Vincent Chao of Deutsche Bank. Please go ahead.

Hey, good afternoon, everyone. Just wanted to clarify just a lot of questions on the bookings. But, Bill, you mentioned feeling comfortable hitting the $15 million range assuming you get at least one anchor tenant, it sounds like 6.5% was the biggest for this quarter. So I mean is that what you mean when you're referring to an anchor tenant, something in that 5 megawatt or 6 megawatt deal size? And then second question is more on the dispositions. I know they're non-core, so maybe not a great read through for the rest of the value of the portfolio. But just curious if you could give some commentary on the California data centers that were 100% leased that traded at pretty high cap rate?

Yeah. I mean we take a look on that deal that you mentioned, the $6 million deal, keep in mind that there was shell associated with that which will likely lead to some additional improved data center space that will be leased over time. But, yes, that's fair. Andy, you want to handle the asset sale question?

Actually, Scott, do you want to hit the dispose?

Yeah. I can nail that. Those assets were out in the, call it, the Sacramento market which is a non-core market, so not as robust a demand from the potential investors or buyers out there. Also one of those assets was a little challenged with some structural vacancy there which kind of led towards that higher yield on that.

And, Vin, I think in summary, it's a continuation of the capital recycling program that really under Bill in Scott's leadership started years back to kind of exit markets, exit non-core assets and redeploy that capital at better returns into the core portfolio.

The next question will come from Frank Louthan of Raymond James. Please go ahead. Frank Garreth Louthan - Raymond James & Associates, Inc.: Great. Thank you. So just curious on Europe, obviously the industry is seeing some strong growth there. Any thoughts on why not spending some capital and trying to be more aggressive in that market? How should we think about that going forward?

Hey, thanks, Frank. This is Andy. I can take that one. So I think we're doing a very good job at executing in Europe and timing is everything because the example we mentioned on the call, a very sizable customer landed in Amsterdam with us in our Scale campus. It was a legacy DFT relationship we were able to grow internationally and we thought it was going to land during the quarter and it popped over into the next month. And on the backs, I think though there's been a tremendous amount of activity in a few other markets outside of Amsterdam. In Frankfurt, where we've delivered our first campus offering 6 megawatts. We're moving well along in terms of landing an anchor customer with the top-five global service provider. And turning to London, I know the team is working on a, call it, a 600 kilowatt or so deal on the enterprise vertical as well as some demand coming out of our Asia Pacific sales team looking to land in the London market. So the timing of our inventory coming online seem to be quite fortuitous in terms of an increase in demand backdrop. And we think we have the right capacity, and if this continues, like we've seen in the very end of the first quarter and beginning of the second quarter, I think that would point to continue to put investment into Europe. Frank Garreth Louthan - Raymond James & Associates, Inc.: Okay. Great. Thank you.

The next question will be from Richard Choe of JPMorgan. Please go ahead.

Hi, I just wanted to follow-up on the SG&A line. It really dropped dramatically quarter-to-quarter. How much is this just seasonal? Is this the new base level? And is it going to rebound through the year or is there something else going on there? And then I have one follow-up?

Hey, Richard. Thanks for that question. The answer to your question is yes and yes. It did step down partly due to seasonal in terms of bonus accruals. As we know our numbers and performance close to the end of the year. That number will ratchet up a little bit in the third and fourth quarters, and you can kind of look at that similar trend in past third and fourth quarters. We also were carrying in the G&A some head count and some non-comp expense associated with our DFT acquisition that has been winding down on both of those fronts. And we do think, it will step back up, as some of our G&A investments, be it our IT systems, our investment in the sales and marketing department, sales engineering and our overall IT department, as we work on finalizing our integrations and invest the team, similar to the comments we made at our Investor Day in the beginning of December, really to spend not massive dollars but amount in the budget to fuel growth in the business. So I do think they'll pick up in the back half of the year.

And then looking at the supplemental, it seems like on the lease expiration things were pushed out. It might be a subtle difference, but just wanted to be able to ask about it. Have you been working to kind of extend out customers and it maybe is not something that you can just point out on a big level, but it seems like a lot of the 2018 and 2019 expirations have been pushed out. Is there something there that we should be aware of?

I would say we're always looking to push out customer contracts and having customers contracting with us for longer terms at fair and rising rates. So we did about $57 million of renewals. I don't think that was a record renewal quantity for us. The weighted average renewal term on the TKF which is the larger dollar longer term stuff, let's call it five years. And, no, we obviously keep chopping through our renewals every year. I think we're taking a very much a holistic approach with our global customer base and using those installed, embedded relationships and contracts to come to mutually beneficial outcomes and package more business together and use that installed customer base as a competitive advantage that helps our customers more than some of our competitors can.

The next question will be from Lukas Hartwich of Green Street Advisors. Please go ahead.

Thanks. Hey, guys. I noticed the base building construction pipeline increased by a fair amount this quarter. Can you provide some color on that?

My gut, Lukas, is – that's on the developments-type pipeline that's really largely driven by some of the activity in Northern Virginia. And like I said, we've got, call it 23 megawatts that are as of the quarter were unleased and we're working fast and furiously and bringing on incremental shelves because we'll be quickly through building out on that campus, at least the first phase of it. We also – something I should mention. We also had in the prior quarter there was a shell that was not there that we brought online because the customer signed a lease for the entirety of a shell like in 36 megawatts, including initial take of 6 megawatts within it as well on a long-term basis. So that kind of speaks to the activity in that market, in particular that customers are in large amounts moving to fully contracts when we're literally looking at dirt and explain design very quickly.

That's helpful. And then just a quick follow-up. The straight line rent line item, looks like it's up a little bit over the last couple of quarters. And is that just driven by free rent on recent lease signings or what's kind of driving that line item?

I think there was something in the prior quarter that deflated that adjustment. It was episodic maybe on the leasehold side. I would say with signing more longer-term deals with escalators is going to certainly continue to widen that gap between your GAAP rent and your cash rent. So that would probably be another attributor to the widening of that number. But relatively I would say fairly small adjustment because I would say that the delta between our FFO and AFFO is relatively narrow speaking to the quality of our earnings.

The next question will be from Robert Gutman of Guggenheim. Please go ahead.

Hi. Thanks for taking the question. So, we haven't seen much power-based building for quite a while, and it turned up again this quarter. I was wondering, especially based on the comment you made, I think, answering the last question, does this indicate anything about the customer view? Why is this suddenly coming back into the picture? Is it a positive read on demand? And similarly, in Asia Pacific, you had significant Turn-Key leasing. I was wondering if you could provide some greater color on location and the context for that.

Hey, Rob. Thanks for the question. So, I do think the data point you pointed out does point to a trend we're seeing in the business as these large either top five cloud service providers, other hyperscalers are seeing a long-term growth trend in their business. And they're looking to lock up capacity in large quantities, knowing that they'll grow into it over time. In that example, they took down the entire shell and rented that from us – or upon delivery, they will rent it from us, and then took one suite and then will grow into that suite – the full shell over time. I think that's something not necessarily identical structures, but I think that many of our large and growing customers are thinking long-term about the growth in their business. And this is just one way to tackle it. Turning to Asia, I would say, I just spent some time over there with our team over there who's incredibly talented and had some great success with the local customer base. And really, it's been about a bit of an import/export business and I don't say that in jest, but it's bringing those local customers into the data centers in Singapore where we had significant pick up in leasing with the new logo on a large-scale deal. And it's also setting that same demand to other parts of the Digital Realty portfolio. And I'm thinking particularly of some of the Chinese customers where they've sent that demand into North America on both coasts and also tracking deals, as I mentioned earlier, in the European market with that same profile of customer. So, overall, great progress from the team in Asia-Pacific in the last handful of quarters, actually.

The next question will come from Nick Del Deo of MoffettNathanson. Please go ahead.

Hi. Thanks for taking my question. First, I was hoping to drill down a bit further into rent changes that you're seeing at renewal. More specifically, if we slice your Turn-Key portfolio different ways, like older facilities versus newer facilities or Internet gateways versus corporate facilities or higher resiliency versus lower resiliency, are there differences in what you see at renewal or would you characterize them as fairly similar across the board? And then second, I was just hoping you give us an update on some of the customer service initiatives you're undertaking and if you're starting to see any benefit in the result?

Sure. Hey, Nick, I'll tackle the first one, and I'll toss it out to team to talk about on the customer service side. We have a table in the back of our financial supp, it's either page 20 or 21 or 22, that really breaks out the product offerings. I would say the outcome of our expirations in terms of cash mark-to-market is driven by the product offering. It's driven by the customer profile. And as you can see on that, the bulk of our Internet gateways, as you've mentioned, fall within our colocation footprint. And that's not exclusively, but you see that we had 3.5% cash mark-to-markets, all with 90% retention. And if you move to the Turn-Key Flex, which is typically a little bit larger scale, definitely approaching the multiple megawatts in terms of expirations and renewals, that was closer to 4%. It's those colocation product offerings, those Internet gateways are typically incredibly network customer dense, limited capacity, maybe the most challenging type of capacity to move to a new provider. But both, by and large, have had kind of cycled through some peak vintage leases and turned into positive in the last couple of quarters. The other thing I want to touch on real quickly is, we really try to take a holistic customer approach, agnostic to product, and try to bring as many pieces of business, be it a network node in an Internet gateway, a scale renewal in one of our campuses, business in North America or Asia or Europe, and bring that in a holistic fashion to the customer and bring more to the table than just a transactional experience, which we think is a win for the customer in terms of delivering more value, and we think it's a win for Digital. And that often how we treat that customer at the renewal and those economic equations may flow through with a little bit softer or positive cash mark-to-market, but may also translate into more signings in the portfolio near-term and in the future. Maybe I'll turn it over to Dan to talk a little bit about the customer service initiative.

Thanks, Andy. Thanks, Nick, for the question. We look at our performance over the last few quarters and our confidence in the pipeline right now. I think your question on customer services is quite valid to ask because we feel like it's making a significant difference in the demand pipeline that we're seeing from our customers. We have customer success managers deployed across our client base. We've invested in that role inside the company so that we stay close to our existing customers, while the sales team is out building new pipeline and we have very, very positive feedback from our customers in regard to that. We mentioned previously our Digital Delivers Program, which basically when a customer has feedback for us they just click a hyperlink at the bottom of any of our emails and get a response in 24 hours, and very positive feedback on that. We've talked about the focus on cultural changes and customer centricity in the company. That's making a big difference for us as well. And then, finally to say again, the executive sponsor program where all of us are getting out into the field and spending time with our clients, understanding what their strategic and tactical needs are, makes us really well informed leadership team and able to much more effectively make decisions that end up in, we believe, much happier customers and repeat customers. That's working well for us.

And the next question will come from Sami Badri of Credit Suisse. Please go ahead. Sami Badri - Credit Suisse Securities (USA) LLC: Hi. Thank you. Could you give us more color on why interconnection grew around 7% 1Q 2018? And just in the context of just your performance in the quarter, can you give us a little more color on that? And also after that, a second part to that is, could you give us more color on the work you're doing with Megaport, considering you actually invested another $5 million in a follow-on equity offering? And I could go from there.

Sure. Thanks, Sami. Maybe I'll just touch on the interconnection revenue on the signings and the full tour on the P&L and then I'll toss over to Chris Sharp, our CTO to add on to that and also give some commentary on the Megaport question you had. So it was a little bit lower – on the signings front obviously a step-up versus the prior quarter but still not at a level that we're completely satisfied with. I can't tell you, I'd pointed to something specific episodic on the signings. I often look at it the interconnection signings kind of hand-in-hand with the colocation signings where the bulk of that connectivity is being serviced. And on a quarter-over-quarter basis, while not at peak number were down, call it, just north of 10%. I attribute that largely to our pipeline and execution around some larger colocation deals. So sub megawatt, I call it 200 kilowatts, 300 kilowatts, 400 kilowatts, 500 kilowatts. And another dynamic going on there is some – the lines are blurring a little bit between our products in terms of colocation and scale and some of those type deals have actually fallen outside of the colo product into a scale TKF suite. We actually saw a tick up, close to 14% or about 0.5 megawatt for sub 600 kilowatt deals that landed outside of colo. A prime example of that was a large telecommunication company that landed with us I think in nine locations and about half were in product types colo and half were outside product types colo. But net-net I think it's good news because our breadth of product allows us to capture that and I think the pipeline for some of the larger colo deals, which should have additional connectivity in the ensuing quarters is looking pretty strong. But maybe I'll open it up to Chris to add on to that or touch on the Megaport question as well.

Thanks, Andy. And Sami, yeah, you're are absolutely correct. We're very happy with the partnership that we have in place with Megaport today. It's a very unique partnership out in the market. One of the things that we always emphasize is that the core component to our overall service exchange which some of the key highlights are on the service exchange is, it's really changing the dialogue that we're having with customers today and allowing us to really remove a lot of complexity from their deployments and allowing them to stand up their hybrid cloud architectures and one customer in point after – in most recently win in this last quarter is Netgain. They are a cloud IT provider delivering cloud hosting and managed services for healthcare and financial vertical. It's really the service exchange is allowing them to provide a much more dynamic environment for their customers in accessing the Microsoft Azure cloud. And then lastly, I mean, one of the reasons that Netgain came to Digital is the fact that they're able to provide a more robust, very performance aware deployment and be able to access a set of future cloud services which allows them to really broaden their horizons and leverage a future set of cloud services across that exchange. And that's where, one of the reasons why we picked Megaport to partner with is that not only their work, but our conjoined working going to market allows us to really solve a very differentiated part of the market and the fact that we've been able to accelerate the launch of the service exchange into most recently Amsterdam, Frankfurt and London due to the customer demand because of the fact that we have all the top five cloud providers on that platform. So, that's including Microsoft Azure, Google Cloud, AWS, Oracle and IBM. So it's really allowing us to have a value based dialogue with our customer base. So we're very happy with the partnership we have in place with Megaport and we look to continue to expand the service exchange functionality across our portfolio.

And ladies and gentlemen, that will conclude our question-and-answer session. I would like to hand the conference back over to Bill Stein for his closing remarks.

Thanks, Denise. I'd like to wrap up our call today by recapping our highlights for the first quarter as outlined here on the last page of our presentation. First, we continue to execute on the integration of DuPont Fabros capitalizing on the value of the installed customer base to realize revenue synergies reaching record high bookings and backlog. We also delivered very solid current financial results being in consensus and raising guidance. Three of the sustainable growth in our earnings has flowed through to cash flow, as well as our distributions to shareholders. And our board recently approved a 9% increase in the per share dividend making this the 13th straight year that we've given shareholders a raise on the dividend. We achieved this growth in our distributions to shareholders while preserving our best-in-class balance sheet which we believe is a critical differentiator, particularly in a rising rate environment. Last but not least our board has approved a resolution giving shareholders the right to propose binding amendments to our bylaws. As I do every quarter, I'd like to conclude today by saying thank you to the entire Digital Realty team, whose hard work and dedication is directly responsible for this consistent execution. Thank you all for joining us and we hope to see many of you at NAREIT in June.

Thank you, sir. Ladies and gentlemen, the conference has now concluded. Thank you for attending today's presentation. You may now disconnect your line.