Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (33523)	2/13/2009 8:48:00 AM
From: Grommit	Respond to of 78740

DFT - I did not mention cap rates. I am talking about NBV, and replacement value. My point was that the assets are valued on the books at a depreciated value of $15, and the stock is at $5. And they mention in the conf call that companies have stopped building and demand has not stopped growing. (on bottom, and more in the link) But it you want to talk cap rates -- here is an argument that cap rates might not be down for these assets: Unidentified Analyst My first question is about the most recently signed leases, specifically the one with track base for the 11,000 square feet, at the ACC4. Could you maybe provide a little more detail on the pricing or terms of that lease? For example what was the rent per megawatt of critical load or per square foot and how does that compare to the already space? Hossein Fateh We do not break out individual tenant rent, but we can tell you that the overall return on ACC4 has been better then we expected, we projected on our IPO being around 12% yield. We now are comfortable in saying that it will be approximately a 15% yield. Unidentified Analyst 15%, it sounds great. Also, just a quick question on the FFO. Looking at your our guidance of $0.96 to $1.12 for the full year, I guess it's fair to assume that you will be exiting 2009 at a probably higher rate, could you give us a little sense of where you would, where the FFO would be exiting 2009? Unidentified I didn't break it, I mean I gave full year guidance. I didn't break it out by quarter, but we will -- we are positioning ourselves to have a very good 2010, both on a FFO run rate as well as the AFFO run rate. ................ For the lack of supply has led to a increase in leasing. And we will continue to see that, to design and buy a piece of land for data center. It takes one year, it takes another year to build it, we probably will not have financing available for a year or two. So that means we will continue to see a restricted supply for three to four year. seekingalpha.com