Item 2. PROPERTIES

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Item 2. PROPERTIES

General

In addition to the information in this Item 2, certain information regarding our portfolio is contained in Schedule III (Financial Statement Schedule) under Part IV, Item 15(a) (2) and which is included in Part II, Item 8. Information for Ascenty is only included in the Our Portfolio table in this Item, otherwise all other tables exclude tenant and leasing data related to Ascenty.

Our Portfolio

As of December 31, 2018, our portfolio consisted of 214 data centers, including 18 data centers held as investments in unconsolidated joint ventures, and contain a total of approximately 34.5 million rentable square feet, including 3.4 million square feet of space under active development and 2.1 million square feet of space held for development. The following table presents an overview of our portfolio of properties, including the 18 data centers held as investments in unconsolidated joint ventures and developable land, based on information as of December 31, 2018 (dollar amounts in thousands). All data centers are held in fee simple except as otherwise indicated. Please refer to Note 8 in the Notes to the Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K for a description of all applicable encumbrances as of December 31, 2018.

Metropolitan AreaData Center BuildingsNet Rentable Square Feet (1)Space Under Active Development (2)Space Held for Development (3)Annualized Rent (4)Occupancy Percentage (5)
North America
Northern Virginia305,718,1801,425,02984,852$549,44695.4%
Chicago102,963,850459,250152,362291,59989.5%
New York121,980,040—240,157206,25183.5%
Silicon Valley192,251,021——208,19597.1%
Dallas213,435,188132,31081,206183,81480.4%
Phoenix4990,385—108,92689,36566.4%
San Francisco4834,54013,753—65,25771.8%
Atlanta5775,606—313,58152,63290.6%
Los Angeles4806,93411,545—41,23190.7%
Boston5534,249—50,64931,27266.8%
Houston6392,816—13,96919,53784.6%
Toronto, Canada (6)3326,59160,506511,96918,02275.0%
Denver2371,500——11,66599.8%
Austin185,688——8,53965.1%
Miami2226,314——7,17287.2%
Portland148,574——6,33785.3%
Minneapolis/St. Paul1328,765——5,644100.0%
Charlotte395,499——4,51089.1%
Seattle140,564—75,3822,60977.1%
North America Total / Weighted Average13422,206,3042,102,3931,633,0531,803,09787.6%

Index to Financial Statements

Metropolitan AreaData Center BuildingsNet Rentable Square Feet (1)Space Under Active Development (2)Space Held for Development (3)Annualized Rent (4)Occupancy Percentage (5)
Europe
London, United Kingdom (7)161,430,10792,560104,606209,63491.3%
Amsterdam, Netherlands (8)9474,30391,85968,18546,37292.9%
Dublin, Ireland (8)5330,18026,646—26,73589.8%
Frankfurt, Germany (8)383,981157,056—12,00675.1%
Paris, France (8)3185,994——7,077100.0%
Manchester, England (7)138,016——1,754100.0%
Geneva, Switzerland (8)159,190——1,772100.0%
Europe Total / Weighted Average382,601,771368,121172,791305,35091.8%
Asia Pacific
Singapore (9)2540,638——89,62991.5%
Melbourne, Australia (10)2146,570——16,78979.3%
Sydney, Australia (10)3196,665117,692—23,02591.7%
Osaka, Japan (11)1—239,999———
Asia Pacific Total / Weighted Average8883,873357,691—129,44389.5%
Ascenty Acquisition (12)16473,251522,643243,16073,53895.3%
Non-Data Center Properties—516,107——4,591100.0%
Managed Unconsolidated Joint Ventures
Northern Virginia4546,572——27,48899.5%
Hong Kong (13)1178,505—7,79527,39980.7%
Silicon Valley4326,305——12,942100.0%
Dallas3319,876——7,739100.0%
New York1108,336——3,460100.0%
131,479,594—7,79579,02897.5%
Non-Managed Unconsolidated Joint Ventures
Seattle2451,369——55,77997.9%
Tokyo (11)2430,277——22,56186.9%
Osaka (11)192,087——15,00689.2%
5973,733——93,34692.2%
Total21429,134,6333,350,8482,056,7992,488,39389.0%

Index to Financial Statements

(1)Net rentable square feet at a building represents the current square feet at that building under lease as specified in the lease agreements plus management’s estimate of space available for lease. We estimate the total net rentable square feet available for lease based on a number of factors in addition to contractually leased square feet, including available power, required support space and common area. Net rentable square feet includes tenants’ proportional share of common areas but excludes space held for development.
(2)Space under active development includes current base building and data center projects in progress.
(3)Space held for development includes space held for future data center development, and excludes space under active development.
(4)Annualized rent represents the monthly contractual rent (defined as cash base rent before abatements) under existing leases as of December 31, 2018 multiplied by 12.
(5)Excludes space held for development and space under active development. We estimate the total square feet available for lease based on a number of factors in addition to contractually leased square feet, including available power, required support space and common area.
(6)Rental amounts were calculated based on the exchange rate in effect on December 31, 2018 of $0.73 to 1.00 CAD.
(7)Rental amounts were calculated based on the exchange rate in effect on December 31, 2018 of $1.27 to £1.00.
(8)Rental amounts were calculated based on the exchange rate in effect on December 31, 2018 of $1.14 to €1.00.
(9)Rental amounts were calculated based on the exchange rate in effect on December 31, 2018 of $0.73 to 1.00 SGD.
(10)Rental amounts were calculated based on the exchange rate in effect on December 31, 2018 of $0.70 to 1.00 AUD.
(11)Rental amounts were calculated based on the exchange rate in effect on December 31, 2018 of $0.01 to 1.00 JPY.
(12)Rental amounts were calculated based on the exchange rate in effect on December 31, 2018 of $0.26 to 1.00 BRL.
(13)Rental amounts were calculated based on the exchange rate in effect on December 31, 2018 of $0.13 to 1.00 HKD.

We have ground leases on Paul van Vlissingenstraat 16 that expires in 2054, Chemin de l’Epinglier 2 that expires in 2074, Clonshaugh Industrial Estate I and II that expires in 2981, Manchester Technopark that expires in 2125, 29A International Business Park that expires in 2038, Gyroscoopweg 2E-2F, which has a continuous ground lease and will be adjusted on January 1, 2042, and Naritaweg 52, which has a continuous ground lease. We have operating leases at 111 8th Avenue (2nd and 6th floors), 111 8th Avenue (3rd and 7th floors) and 410 Commerce Boulevard, which expire in June 2024, February 2022 and December 2026, respectively. The lease at 111 8th Avenue (2ndand 6th floors) has an option to extend the lease until June 2034 and the lease at 111 8th Avenue (3rd and 7th floors) has an option to extend the lease until February 2032. The lease at 410 Commerce Boulevard has no extension options. As part of the Telx Acquisition and European Portfolio Acquisition, leases relating to operating facilities, offices, and equipment under various lease agreements expire during the years ending December 2018 through June 2047.

We have a fully prepaid ground lease on 2055 E. Technology Circle that expires in 2083. We have a fully prepaid ground lease on Cateringweg 5 that expires in 2059. The ground lease at Naritaweg 52 has been prepaid through December 2036.

Index to Financial Statements

Customer Diversification

As of December 31, 2018, our portfolio was leased to over 2,300 companies, many of which are internationally recognized firms. The following table sets forth information regarding the 20 largest customers in our portfolio based on annualized rent as of December 31, 2018 (dollar amounts in thousands).

TenantNumber of LocationsTotal Occupied Square Feet (1)(4)Percentage of Net Rentable Square Feet (4)Annualized Rent (2)(4)Percentage of Annualized RentWeighted Average Remaining Lease Term in Months
1Facebook, Inc.181,207,0445.1%$154,4266.8%5.3
2IBM281,061,1954.5%145,9876.4%3.2
3Fortune 50 Software Company171,714,7627.3%139,9476.2%5.2
4Cyxtera Technologies, Inc. (3)191,938,6578.3%80,3703.5%4.9
5Fortune 25 Investment Grade-Rated Company11684,5462.9%80,1043.5%5.1
6Oracle America, Inc.20593,2502.5%72,7583.2%2.9
7Equinix21959,6784.1%58,5792.6%10.3
8Rackspace12640,1262.7%57,6152.5%8.9
9LinkedIn Corporation7441,4501.9%54,3762.4%5.7
10Verizon66375,2461.6%52,1962.3%2.9
11Fortune 500 SaaS Provider8496,7042.1%44,1211.9%6.9
12AT&T59649,7542.8%40,3311.8%3.5
13Comcast Corporation26182,7440.8%34,9411.5%6.9
14JPMorgan Chase & Co.16264,6521.1%33,4101.5%3.3
15DXC Technology Company (5)11244,4881.0%33,2701.5%3.5
16Uber Technologies, Inc.5167,5000.7%30,7071.4%3.4
17CenturyLink, Inc.80427,6761.8%27,1771.2%4.8
18China Telecommunications Corporation10152,8430.7%26,4941.2%5.3
19SunGard Availability Services LP11222,1850.9%24,7241.1%6.2
20Charter Communications18144,9820.6%23,7901.0%5.7
Total / Weighted Average12,569,48253.4%$1,215,32353.5%5.3

Note: Our direct customers may be the entities named in the table above or their subsidiaries or affiliates.

(1)Occupied square footage is defined as leases that commenced on or before December 31, 2018. For some of our properties, we calculate occupancy based on factors in addition to contractually leased square feet, including available power, required support space and common area.
(2)Annualized rent represents the monthly contractual base rent (defined as cash base rent before abatements) under existing leases as of December 31, 2018 multiplied by 12.
(3)Represents leases with former CenturyLink, Inc. affiliates, which are our direct customers. Cyxtera Technologies, Inc. acquired the data center and colocation business, including such direct customers, of CenturyLink, Inc. in 2Q 2017.
(4)Represents consolidated portfolio plus our managed portfolio of unconsolidated joint ventures based on our ownership percentage.
(5)Represents leases with former Hewlett Packard Enterprises affiliates, which are our direct customers, DXC Technology Company was formed in 2Q 2017 from the merger of Computer Sciences Corporation (CSC) and the Enterprise Services business of Hewlett Packard Enterprise.

Index to Financial Statements

Lease Distribution

The following table sets forth information relating to the distribution of leases in the properties in our portfolio, based on net rentable square feet (excluding approximately 3.4 million square feet of space under active development and approximately 2.1 million square feet of space held for development at December 31, 2018) under lease as of December 31, 2018 (dollar amounts in thousands).

Square Feet Under LeaseTotal Net Rentable Square Feet(1)(3)Percentage of Net Rentable Square Feet(1)Annualized Rent(2)(3)Percentage of Annualized Rent
Available3,081,81611.6%——
2,500 or less1,688,7076.4%$329,47014.5%
2,501 - 10,0002,707,46710.2%331,88914.6%
10,001 - 20,0006,275,58223.6%763,25833.7%
20,001 - 40,0004,591,29017.3%490,62221.7%
40,001 - 100,0004,127,29315.5%226,47710.0%
Greater than 100,0004,085,37015.4%124,7885.5%
Portfolio Total26,557,525100.0%$2,266,504100.0%
(1)For some of our properties, we calculate square footage based on factors in addition to contractually leased square feet, including available power, required support space and common area. We estimate the total net rentable square feet available for lease based on a number of factors in addition to contractually leased square feet, including available power, required support space and common area.
(2)Annualized rent represents the monthly contractual base rent (defined as cash base rent before abatements) under existing leases as of December 31, 2018 multiplied by 12.
(3)Represents consolidated portfolio plus our managed portfolio of unconsolidated joint ventures based on our ownership percentage.

Index to Financial Statements

Lease Expirations

The following table sets forth a summary schedule of the lease expirations for leases in place as of December 31, 2018 plus available space for ten calendar years at the properties in our portfolio, excluding approximately 3.4 million square feet of space under active development and approximately 2.1 million square feet of space held for development at December 31, 2018. Unless otherwise stated in the footnotes to the table below, the information set forth in the table assumes that tenants exercise no renewal options and all early termination rights (dollar amounts in thousands).

YearSquare Footage of Expiring Leases (1)(4)Percentage of Net Rentable Square Feet (4)Annualized Rent (2)(4)Percentage of Annualized Rent (4)Annualized Rent Per Occupied Square Foot (4)Annualized Rent Per Occupied Square Foot at Expiration (4)Annualized Rent at Expiration
Available3,081,81611.6%
Month to Month (3)262,0331.0%$51,6662.3%$197$197$51,666
20193,458,22513.0%444,34219.6%128129444,717
20202,408,3189.1%294,88813.0%122124298,743
20213,041,24611.5%274,65312.1%9094286,641
20222,821,05110.6%268,46111.8%95103290,077
20232,099,8247.9%217,6989.6%104109228,382
20241,809,4096.8%166,0317.3%9297176,145
20251,761,3256.6%140,5256.2%8092162,037
20261,247,1194.7%120,3865.3%97113140,570
2027701,8992.6%58,2482.6%8310271,494
2028724,1382.7%53,1122.3%738964,335
Thereafter3,141,12211.9%176,4947.9%5675236,338
Portfolio Total / Weighted Average26,557,525100.0%$2,266,504100.0%$97$104$2,451,145
(1)For some of our properties, we calculate square footage based on factors in addition to contractually leased square feet, including available power, required support space and common area. We estimate the total net rentable square feet available for lease based on a number of factors in addition to contractually leased square feet, including available power, required support space and common area.
(2)Annualized rent represents the monthly contractual base rent (defined as cash base rent before abatements) under existing leases as of December 31, 2018 multiplied by 12.
(3)Includes leases, licenses and similar agreements that upon expiration have been automatically renewed on a month-to-month basis.
(4)Represents consolidated portfolio plus our managed portfolio of unconsolidated joint ventures based on our ownership percentage.

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