Good afternoon, and welcome to the Digital Realty 4th Quarter 2020 Earnings Call. Please note this event is being recorded. During today's presentation, all parties will be in a listen only mode. Following the presentation, we will conduct a question and answer session and callers will be limited to one question plus a follow-up. Due to time constraints, we will conclude promptly at the bottom of the hour.
I would now like to turn the call over to John Stewart, Digital Realty's Senior Vice President of Investor Relations. John, please go ahead.
Thank you, Andrea. The speakers on today's call are CEO, Bill Stein and CFO, Andy Power Chief Investment Officer, Greg Wright Chief Technology Officer, Chris Sharp and EVP of Sales and Marketing, Corey Dyer are also on the call and will be available for Q and A. Management may make statements, including guidance and their 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 ks 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 Bill, I'd like to hit the tops of the waves on our 4th quarter results. We delivered high quality quarterly bookings in terms of total volume as well as the product mix, Geographic split and the number of new logos landing on Platform Digital. We extended our global platform entering Greece with The leading colocation interconnection provider in Southeastern Europe and securing customer growth in existing markets around the world with key land purchases and new builds.
We delivered solid financial results with core FFO per share $0.08 ahead of consensus driven by operational outperformance. Finally, we further strengthened the balance sheet, lowering our weighted average cost of debt with the redemption of high coupon debt and preferred equity, while extending our weighted average duration with the issuance of attractively priced long term capital. With that, I'd like to turn the call over to Bill.
Thanks, John. Good afternoon, and thank you all for joining us. The Q4 capped off a transformational year for Digital Realty. We acquired several highly connected assets, including the Weston Building in North America and InterXion in EMEA, Along with the leading colocation and interconnection providers in Southeastern Europe, significantly expanding our platform in EMEA, while trimming non core assets in North America. We delivered record bookings for the full year An extraordinary performance under any set of circumstances, but particularly amid the headwinds of a global pandemic.
Our business is increasingly global. In 2020, we nearly doubled the number of countries where Digital Realty has a presence, And EMEA accounted for more than half our 4th quarter bookings. The first time ever, a majority of our bookings has been outside the Americas. We more than doubled our cross connect count in 2020, reflecting the growing concentration of network dense, Highly Connected Assets on Platform Digital. We landed a record number of new logos in 2020, More than twice as many as our previous record, in fact driving consistent growth in our enterprise colocation and interconnection business.
The vibrant communities in our campus environments are attracting a growing set of new customers, diversifying and solidifying our revenue streams. Service Providers and Enterprises alike are strengthening their partnership with a select number of trusted global data center partners to help meet their growing needs around the world and Digital Realty is uniquely well positioned to serve as their partner of choice. Let's turn to our sustainable growth initiatives here on Page 3. In October, we formally committed to reducing direct and indirect emissions by 68% And indirect emissions in our value chain by area by 24% by 2,030, in line with a 1.5 degree climate change scenario. We set our target with Science Based Targets initiative Along with over 1,000 organizations that have committed to reduce emissions.
And we also signed the UN Global Compact's business ambition For 1.5 Degrees C joining leading companies who have committed to ambitious carbon reduction targets. In early December, we announced that our operations in France were on target to achieve a carbon neutral footprint by the end of the year and are expected to remain carbon neutral through 2,030 for both existing facilities and future expansion based on scope 1 and to emissions. In mid December, we were honored to receive NAREIT's Leader in the Light Award for Data Center Sustainability for the 4th consecutive year. In early January, we issued our 5th green bond, extending our lead as the largest U. S.
REIT issuer of bonds committed to sustainable investments. Our green bond framework is aligned with leading global best practices, Including GRESB's Green Bond Principles as well as the UN Sustainable Development Goals and Sustainalytics has provided an independent 2nd party opinion, concluding that our green bond program is considered robust, credible and transparent. We are committed to minimizing our impact on the environment, while simultaneously meeting the needs of our customers, our investors, our employees and the broader society. In terms of our social efforts, We recently selected diversity, equity and inclusion as one of 4 company wide philanthropic areas of focus In addition to sustainability, disaster relief and STEM education. As you may be aware, NAREIT recently instituted a Dividends Through Diversity and Inclusion program, which I am honored to be co chairing along with Tom Baltimore of Park Hotels and Debbie Caffaro of Ventas.
Dividends through Diversity will promote the recruitment, We have also joined leaders across 85 industries in signing the CEO pledge on CEO Action for Diversity and Inclusion, An initiative that aims to rally the business community to advance diversity and inclusion in the workplace and to cultivate a trusting environment where employees feel empowered to have discussions on these topics. Participating in these programs and others like them is critical to our industry's future because it is the right thing to do and because we serve a broad diverse community And we believe that to help our customers prepare for the future, we need industry professionals whose insights and perspectives reflect the communities we serve. We are doing our best to play a constructive proactive role in advancing our broader goal of delivering sustainable growth For all our stakeholders, investors, customers, employees and the communities we serve around the world. Let's turn now to our investment activity on Page 4. We continue to expand our global platform With the acquisition of the leading colocation and interconnection provider in Southeastern Europe, Groundbreakings in existing markets across EMEA and strategic land purchase on the continent and in Asia Pacific.
In early November, we acquired Lambda Helix, the largest carrier neutral colocation and interconnection provider in Greece, led by an accomplished management team who will continue to manage the business. As leading service providers continue to expand their footprint, We expect Greece and other parts of Southeastern Europe will be major beneficiaries. We are well positioned to capture the key cloud and connectivity deployments that will accelerate the region's digital transformation. In Denmark, We began construction on our 3rd data center adjacent to the 2 existing facilities on our Copenhagen campus and offering direct access to leading global cloud providers, numerous networks, Internet exchanges and a transatlantic subsea cable system. We also broke ground on a new data center in Zurich, where we've seen robust demand from leading global service providers.
The expansion of our Zurich campus will provide runway for customer growth at the leading cloud and interconnection hub in Switzerland. We also acquired a land parcel within 1 kilometer of our highly interconnected campus in Vienna. And halfway around the globe in Sydney, we are under contract to acquire 2 parcels that will support the development of up to 2 50 megawatts. These strategic land holdings will provide additional capacity enabling local and global service providers To seamlessly expand adjacent to their existing deployments. Let's turn to Page 5 for an update on the InterXion integration.
The successful integration of InterXion was our top priority for 2020 and we made excellent progress despite the pandemic. We have built a solid foundation for the assimilation of our businesses and we are well on our way to achieving the objectives and synergies we outlined when we first announced the transaction. I'm proud of what we've accomplished to date and excited about our prospects as we move into the implementation phase in 2021. When we announced the transaction, we stated that the combined company would have enhanced capabilities to address And solve the public and hybrid cloud architecture requirements of our global customer base that would allow us to build upon each company's current relationships with leading global customers, while also enabling us to effectively compete In the broader target markets. The early results are very promising.
We've enjoyed excellent success With global platform providers and early cross selling wins have surpassed expectations with numerous referrals between the sales teams. The significant embedded growth potential was another key element of the InterXion investment thesis. We believe the combined organization has already created significant long term value by executing On the existing development pipeline, acquiring the Freehold to the land under key positions in Frankfurt and Paris and securing land In key markets to support future growth. Let's turn to demand drivers on Page 6. We continue to be fortunate to be operating in a business lever to secular demand drivers.
As the leading global data center provider, we have a unique vantage point that enables us to detect secular trends as they emerge. We recently introduced the Data Gravity Index, which measures, quantifies and forecasts The growing intensity of the enterprise data creation life cycle and its gravitational impact on global IT infrastructure. This groundbreaking index is a byproduct of our market intelligence analysis as well as our obsessive focus on understanding customers deployments and supporting their evolving infrastructure needs. Recent third party research continues to support the growing relevance of data gravity. According to the market intelligence firm IDC, 80% of the world's data will reside within enterprises by the year 2025.
A 451 Research Global IT Leaders survey recently found that 87% of IT leaders will need to maintain Local copies of critical data at Global Points of Presence to meet regulatory requirements. We continue to see these indicators as enterprises expand their private data infrastructure deployments And integrate data exchange with adjacent business and service provider partners across our global platform. Digital Realty recently received Frost and Sullivan's APAC Data Center Strategy Innovator Award, Recognizing Platform Digital for providing an innovative global platform enabling enterprises to scale digital transformation In a consistent modular fashion and addressing the unique infrastructure requirements for integrating private data flows across multiple Public platforms. We are honored by the strong validation of our platform and our market leading innovation Meeting the needs of our global data center customer base. Given the resiliency of the demand drivers underpinning our business and the relevance of our platform in meeting these needs, we believe that we are well positioned to continue to deliver Sustainable growth for customers, shareholders and employees, whatever the macro environment may hold in store.
With that, I'd like to turn the call over to Andy to take you through our financial results.
Thank you, Bill. Let's turn to our leasing activity on Page 8. We signed total bookings of $130,000,000 in the 4th quarter, including a $12,000,000 contribution from interconnection. Network and enterprise oriented deals of 1 megawatt or less totaled 31,000,000 Building upon the consistent momentum throughout the year and demonstrating the growing success of Platform Digital as we continue to capture a greater share of enterprise demand. The weighted average lease term was over 8 years.
We secured 120 new logos during the quarter With more than half of those new logos landing in EMEA, again demonstrating the power of our global platform. EMEA accounted for more than half of our 4th quarter bookings, while Asia Pacific contributed over 15%. As Bill mentioned, this was the first time the majority of our bookings were outside the Americas. In terms of specific wins during the quarter And around the world, a rapidly growing cloud based cybersecurity provider selected Platform Digital From multiple environments in London and Boston to facilitate modernization and embrace high performance compute technology, while maintaining an exceptional user experience. In New York, the Digital Realty's team's deep understanding of a global retailer's growth strategy enabled us to tailor a solution for their Americas markets on platform digital.
We also overcame lockdowns and international travel restrictions to demonstrate to a digital telecom provider how they can leverage platform digital A rapidly growing gaming platform expanded their edge to rewire their network and optimize data exchange with 3rd party clouds The growth of their existing footprint with us in Northern Virginia and a new deployment in Chicago. Likewise in Chicago, A global exchange operator leveraged Platform Digital to extend their access into our highly interconnected community. In Singapore, 2 leading global financial services firms expanded with Digital Realty due to our platform offering and long history of operational excellence, While a software developer selected Platform Digital to expand their proprietary cloud offering into the region. Turning to our backlog on Page 10. The current backlog of leases signed but not yet commenced Reached an all time high of $269,000,000 The step up from $229,000,000 last quarter reflects $78,000,000 of commencements during the Q4, offset by roughly $118,000,000 of combined space and power leases signed.
The lag between signings and commencements was a bit longer than our long term historical average at 8.5 months. Moving on to renewal leasing activity on Page 11. We signed $156,000,000 of renewals during the 4th quarter in addition to new leases signed. The weighted average term loan renewals signed during the Q4 was a little over 3 years, reflecting a roughly even split in the mix between deals above and below 1 megawatt. Cash releasing spreads on renewals were plus 1% and cash rents were positive on renewals above and below 1 megawatt, an encouraging sign for pricing.
We retain 79% of expiring leases in line with our long term historical average. In terms of 4th quarter operating performance, overall portfolio occupancy improved 40 basis points, driven primarily by leases commencing on recent deliveries in Ashburn and the sale of a vacant building in Amsterdam. Same capital occupancy was down 40 basis points from the 3rd quarter due to no move outs, partially offset by positive absorption in Silicon Valley and Chicago. Same capital cash NOI growth has continued to improve since bottoming in 2019 and ticked up slightly to negative 1.6% in the 4th quarter. For the full year, same capital cash NOI growth was negative 1.9% or a little over 100 basis points better than initially expected.
As a reminder, the Weston Building, InterXion, Lambda Helix and Altus IT are not yet included in the same store pool, but we expect each of these acquisitions will be accretive to our organic growth going forward. Turning to our economic risk mitigation strategies on Page 12. The U. S. Dollar softened in the second half of the year, providing a bit of an FX tailwind in the 4th quarter relative to the prior year average.
Overall, FX represented roughly a 50 basis point tailwind to the year over year growth in our reported results. As a reminder, we manage currency risk by issuing locally denominated debt To act as a natural hedge, so only our net assets within a given region are exposed to currency risk from an economic perspective. In terms of vertical concentration, as you can see from the pie chart on the upper right, we are fortunate to be primarily serving customers whose businesses are thriving in the current environment with limited exposure to the sectors most negatively impacted. Rent collections remain in line with our historical average and requests for rent relief have largely subsided. In addition to managing credit risk and foreign currency exposure, we also mitigate interest rate risk by proactively terming out short term variable rate debt with longer term fixed rate financing.
Given our strategy The duration of our long lived assets with long term fixed rate debt, a 100 basis point move in LIBOR Would have roughly a 50 basis point impact on our full year FFO per share. Our near term funding and refinancing risk It's very well managed and our capital plan is fully funded. In terms of earnings growth, the 4th quarter core FFO per share Was down 0.6% year over year, but $0.08 ahead of consensus, driven primarily by operational outperformance. For the full year, core FFO per share came in $0.22 or nearly 4% ahead of our initial guidance. As previewed on our Q3 call, we expect to deliver double digit revenue growth, driven by a full year contribution from InterXion and the record colocation and interconnection and overall bookings in 2020.
We expect the EBITDA margin will remain in line with the 4th quarter throughout for the deal has always been accelerating revenue growth rather than realizing expense synergies. We've already made great strides on our financing plans for the year With the highly successful $1,000,000,000 green euro bond offering in early January at 5.8 percent in addition to solid progress on the capital recycling front. As always, we expect to remain nimble for the rest of the year and we may look to capitalize on favorable market conditions to lock in long term fixed rate financing and attractive coupons across the currencies that support our assets to proactively manage future liabilities. In terms of FFO per share guidance, our forecast is largely unchanged from the preliminary outlook we previewed on the 3rd quarter call. Although the year over year bar has been raised in the interim given the outperformance in the Q4.
At the midpoint, Our 2021 guidance represents growth of approximately 4%, which includes near term dilution from capital recycling. In terms of the quarterly run rate, we expect the split between the first half of the year and the second half of the year to be approximately 4951. In other words, as you can see from the bridge chart on Page 13, we expect to dip down by about a $0.01 in the Q1, then to ramp up fairly steadily over the rest of the year. In terms of the quarterly dividend, the distribution policy is ultimately a Board level decision. Given the continued growth in our cash flows and taxable income, we would expect to see continued growth in the per share dividend just as we have each and every year since our IPO in 2004.
Last but certainly not least, let's turn to the balance sheet on Page 14. During the Q4, we continued to execute on our financial strategy of maximizing the menu of available capital options, while minimizing the related cost and extending the duration of our liabilities to match our long lived assets. Fixed charge coverage reached 5.1 times, reflecting the results of our proactive liability management. Net debt to adjusted EBITDA was slightly elevated at 6.1 times as of year end, but is expected to come back down in line with our long term range over the course of the year through a combination of proceeds from asset sales and growth in cash flows as leases commenced from the record leasing activity in 2020. In mid October, we redeemed £300,000,000 of our 4.75% sterling bonds due in 2023.
We also redeemed $250,000,000 of high coupon Series G Preferred at 5.7eight. In early January, we raised $1,000,000,000 of 10.5 year green euro bonds and an all time low coupon for Digital Realty of 0.625 percent. We also retired $350,000,000 of 2.75 percent bonds due in 2023 and we paid all $530,000,000 outstanding on the term loan due in 2023. This successful execution against our financial strategy Reflects the strength of our global platform, which provides the access to the full menu of public as well as private capital, sets us apart from our peers and enables us to prudently fund our growth. As you can see from the chart on Page 14, We've extended our weighted average debt maturity out nearly 7 years, while ratcheting our weighted average coupon down to 2.3%.
A little over half our debt is euro denominated, reflecting the growth of our global platform post interaction and acting as a natural FX hedge for our investments outside the U. S. 90% of our debt is fixed rate to guard against a rising rate environment and 98% of our debt is unsecured, providing the greatest flexibility for capital recycling. Finally, as you can see from the left side of Page 14, we have a clear runway with nominal near term debt maturities and no bar too tall in the out years. Our balance sheet is poised to weather a storm, but also positioned to fuel growth opportunities for our customers around the globe, consistent with our long term financing strategy.
This concludes our prepared remarks. Now we will be pleased to take your questions. Andrea, would you please begin the Q and A session?
We will now open up the call for questions. And our first question comes from Jon Adkins of RBC. Please go ahead.
Thank you. So the first question regards is regarding leasing and you talked about new logo capture, but I wondered Of your largest kind of multi megawatt deals, any kind of highlights by geography or type of company? And then, the second question kind of gets to M and A and divestitures and New market entry and kind of any kind of highlights to call out in terms of your appetite for any of those types of projects
Hey, thanks, John. I can probably kick it off on the question on the Multi Megawatt side, and then I'll probably hand it over to Greg to speak to M and A. So very pleased with results overall in terms of 4Q. I think the diversity of the Platform really shine through in both categories, not only the less than a megawatt in interconnection, but also on the scale or hyperscale plus. If you do a quick kind of run through the regions, EMEA, first time, more than 50% of signings.
It was very diverse. There were 6 different markets across EMEA that did a north of a megawatt deal each. So it was London, Paris, Marseille and 2 others because they're escaping my mind. And then over in the Americas, we had both in Ashburn and also in Hillsboro. And the cast of characters for all these are a combination of the major CSPs, SaaS providers and call it B2C hyperscalers as well.
And then last but not least, Pleased with the results in both Brazil and we signed our 2nd customer into Santiago, Chile in the hyperscale arena, another top CSP. And then last but not least, had a project with a top 3 CSP down in Sydney. So really diverse contribution from numerous Major Metros. And I'll turn it over to Greg to pick up on the M and A piece.
Actually, just continuing on that, as you look at Pipeline into 2021, whether you, Andy or Corey would want to comment, but is there any kind of change in procurement activity or Just dialogue with your customers that gives you particular confidence around repeating some of this recent momentum.
Hey, Jonathan, this is Corey. I appreciate it. Just broadly on the sales funnel, I would just tell you that We're happy with the momentum and the success we had in 2020. We see that continuing. I think Andy mentioned to you the regional variances that we First time that EMEA is our largest region for sales and for bookings there.
So that was really good and positive. So we feel good about it. And then regarding the industries that I think you might have asked about, those that are work that are taking advantage of the current work from home, are doing more and more quickly with us. And so we're happy about that and how we're supporting them. And then also we're seeing strength from those industries that were strong prior to the pandemic, Cloud, digital media, etcetera.
And then those that are being kind of suffering a little bit from it, we're seeing them maintain They're IT services and they still got to continue to just have our support to go after their mission critical needs. So we're happy about it. And as we mentioned earlier, Year on year record growth from new logos, standalone, really good success from digital and interaction as we combine the 2 groups. So real happy with the funnel. I'll hand it back to you over to Greg, sorry.
That's okay.
I don't like to take it. Okay. Thanks, Corey. Hey, John, hope you're well. Let me, I guess in the order, let's go to M and A first, then we can talk about divestitures, Which are somewhat related.
Look, I think with respect to M and A, as we've said before, look, we remain focused on integrating InterXion, While doing a few tuck in acquisitions as we would call them, like Altus IT in Croatia and Lambda Helix in Greece, Look, we think the M and A is likely to be more episodic than annual. I think we've already said that. And look, as we look at the M and A environment right now, we would say it's probably gotten more competitive over the past year as additional capital has come into the space. But we also think this could serve to benefit us as we seek to dispose of assets in our capital recycling program. I think look, With respect to our divestitures or capital recycling, our criteria for asset sales remains consistent with our prior commentary.
We're seeking to sell Non core assets in select non core markets. To date, we follow these criteria and dispose of various PBV assets and other quality Standalone assets that really just are not part of our connected community excuse me, connected campus strategy. We're about a And a half through the multi year guidance we gave, which was to sell a few $1,000,000,000 of assets over a few years. The good news for us is we don't need to sell these assets. We have the ability to be strategic and only offer these assets when it's likely that we're going to receive a fair market value for the assets.
And we do expect that these asset sales that will recycle that capital and will provide some of the capital needed for our development program this year and going forward. Again, that's really the state of play. Again, tuck in acquisitions are going to be more a focus, Deals that are strategic, as both Croatia and Greece were their highly connected assets in the regions. The assets combined with the management teams provided a strong launching pad for further activity in the region, and that's really the way we look at And we'll continue to try to find similar deals like these 2 to the extent we can.
The next question comes from Michael Funk of Bank of America. Please go ahead.
Yes. Thank you all for the questions tonight. A few if I could. First, I noticed the GAAP base rent per square foot Step down across the regions quarter over quarter. Can you comment on that?
Hey, Michael. So I think there's a few two items to note in there in particular. And I think you're mostly talking about the greater than megawatts. I thought we had pretty strong Pricing power on the less than a megawatt category, more enterprise network workloads landing in those sites. On the greater than a megawatt piece, it's a little bit of apples and oranges And comparing each market quarter over quarter, you're probably better off going back to the Q2 in terms of more of an apples to apples comparison volume.
And then in the Q4, we had a particular deal structure that made that Skewed that stat lower in terms of reported results. You may recall a year or 2 ago in the Ashburn market, we did a Almost build to suit type project where we built a rather large 36 Megawatt Shell for a customer that was paying us for that shell On a long term lease and then we drop down built out suites in 6 megawatt or so increments over time. So as those take downs of those Suites happen, you're only getting a fraction of the entire economic cost for that customer flowing through our leasing stats We're already recognized the signing and already realizing the return on the shell. And that phenomenon happened actually in North America and also in Asia Pacific, This particular market, strategically, I mean, it's a great tool in our toolkit that I would say not all competitors can really have, Really giving a customer the runway that they desire and the timing flexibility and digital with its scale and breadth Our portfolio and as well as our land banks are able to kind of structure those type of transactions that I think is a strategic advantage for those type of customers.
And then Andy on the FFO growth bridge you provided, it would be helpful if you guys could quantify the impact From the potential sales, the $600,000,000 to $1,000,000,000 Can you quantify that for us?
Yes. So we reiterated Really the same quantity of capital slacking for this year as last year. We feel good nearer term on the lower end of that range. It's a contributor to the, call it, 4Q to 1Q bridging of the quarterly rhythm of core FFO. Just kind of rough math, if we kind of just hit the low end of that range, dollars 600,000,000 use the same type of cap rate we were using for the last Outright sale, we did call it mid to low 6% cap.
You call it about $40,000,000 of NOI and our share count could be as high as 2%. Now that's Assuming you sold the entirety of those assets the 1st day of the year and you didn't have any redeployment of proceeds. So when you kind of Use appropriate calendarization based on our expectations and also redeploy those proceeds either paying down debt near term or in lieu of really equity, I would kind of ballpark it in a 50 to 100 ish type basis point headwind to our year over year growth that is.
The next question comes from Matt Niknam of Deutsche Bank. Please go ahead.
Hey, guys. Thank you for taking the question. Maybe just I have one that's a follow-up to the prior question and then one other operational one. Maybe as a follow-up, If I think about the $6.45 implied core FFO at the midpoint, that's essentially taking 4Q Of $1.61 and annualizing it. So, Andy, maybe I want to better understand the capital recycling that's Assumed, but has not happened yet.
I just want to clarify. And then secondly, more related to Hyperscale in the U. S, if you can if someone could just give an update on the pricing and competitive backdrop you're seeing within Hyperscale and whether deals Are getting any more or less competitive than they've been in the past? Thanks.
Sure. So, two elements. First on your base, we definitely had some outperformance in the Q4 that we highlighted in the prepared remarks. Some of that was, call it, operational related, just commencing revenue faster, but some of it was out of our control and FX It was a tailwind as you saw the U. S.
Dollar kind of plummet and then retrench beginning into 2021. So that makes a little bit of an apples to oranges comparison between 4Q and the run rate for 2021. The answer to your question on the dispositions, we have other than a small one off asset for I think $6,000,000 We have not executed on any of the next leg of capital recycling yet that we framed as At a low range of $600,000,000 high range of $1,000,000,000 and we expect the low end of that range to We'll be executed upon in the pretty near term future here. Hence, when you sell that quantity of assets at even at a 6.5 percent cap rate, you have immediate loss of that income. Just to remind you, Matt and then the broader audience, The dilution or near term, we think, a, is offset by longer term accretion.
We're selling Non core slower growing parts of our portfolio and using that capital often in lieu of equity to fund our growth. And 2, that dilution is baked within The approximately 4% year over year growth. So we're arriving at that year over year growth comparison off an outperformance at the last At the back half of this year and absorbing that dilution. So, it's not incremental to the guidance that we've already laid out.
Got it. And on the hyperscale?
Thank you for reminding me of the first question. And Matt, your question was about hyperscale pricing and the like?
Yes, pricing and competitive nature, because we've heard maybe some anecdote saying It was maybe on the margin things were beginning to get a little bit better, but I'm just curious to get your take in terms of what you've seen.
Yes. I think the a couple of data points that I would say point to our Continued confidence in the opportunity set and really differentiated offering that I think allows us to outshine Our competitors, especially any fledgling more newer competitors, 1, you've seen now a string of quarters In a row where we have a global platform offering for the hyperscalers and to address their pain points, future proof their growth, Deliver operational excellence across now 49 metros, 6 continents, 24 countries. So the trend has been our friend in terms of success there. I think if you look to our development pipeline that stepped up about 13% quarter over quarter, Now 220 Megawatts or so under development, still about 55 ish percent pre leased. You got to imagine there's a lot of hyperscale business in that.
I think the returns have been pretty steady in that category, if not stepped up in certain regions. I'm not saying or blushing off that some of this business is competitive. I think our most competitive market is certainly the U. S. In that market, I think our value proposition has allowed us to even in a challenged market like Ashburn do particularly well with all of our customers, but hyperscalers in particular.
And I think if you then look where the Pipeline is going and where the growth for our business is going, we're seeing more and more opportunities to generate higher returns From both our colocation and connection offering, but also serving those hyperscalers in places where we have a really differentiated value proposition. Certainly tighter markets like the Santa Clara in the U. S, but international markets like Frankfurt, Marseille, Brazil and Singapore as well. So, listen, not saying that hyperscale became an easy business overnight, but Feel very good about what we're delivering to those customers.
The next question comes from Jordan Sadler of KeyBanc Capital Markets. Please go ahead.
Thank you. Good afternoon. Andy, could you just elaborate on The downtime on vacancy a little bit sort of baked into the sequential nickel decline you're pointing to on Page I'm not sure if it's factored into the 1.3% churn you saw in the 4th quarter Or if that's sort of hitting elsewhere?
Yes. I would say that the Q4 actually and then I'll get to the first part of your question, Jordan. The Q4 actually was Pretty pleased with the customer retention and pricing dynamic in both categories In terms of pricing, in both categories in terms of retention, retention, call it, in the 80s and positive mark to markets For both above and less than a megawatt, the impact that we see hitting 2021, but certainly the Q1 of 21 really goes back to what I mentioned in my our call a quarter ago. We ended the year with Our largest amount of non retained capacity in any given market, be it just under 17 megawatts coming back to us, It literally came back to us the 1st of the year. The customer had both physical and economic Occupancy of the suite until the year changed.
It's across multiple suites, across numerous campuses in Ashburn. We're going to we're refurbing that capacity and getting it back out to the market. Of that 17 megawatts, I can tell you we've already released To a new customer, they haven't commenced yet, but they've signed for it, 2.3 Megawatts. We're likely to take another 2.3 Megawatt Suite And convert that to productized colocation given the success of our offering in the market. And then we've got a pretty strong pipeline for those other opportunities a vacancy and it is a bit serendipitous in our favor that we've had such success in Ashburn, despite the broader market challenges Is that we'll be able to focus all our efforts in releasing that capacity because our newest building doesn't come online until roughly 1 July.
So really it's that downtime until we get the new customers and new shapes and forms certainly taking A temporal hit to 2021 in the Q1.
And what's the biggest Chunk of the 17 mags you mentioned 2.3 has already been released. I don't know if that's contiguous, but biggest contiguous chunk. And then Just back to the $0.05 is that the bulk of that coming from this departure? And then what and how will this hit 1Q? Maybe you talk about 1Q and 2021 churn guidance overall.
So let me try to unpack a few in there. So the biggest haul is the 2.3 megawatts. So But there's numerous contiguous hulls. So if we wanted if a customer wanted to have numerous contiguous hulls, which certain customers Value that, I think we can string 6 or so of those together. I'm sorry, that can't be right.
I'm looking at the wrong schedule here. We can string, I think, 3 of those together of contiguous data halls, but each pod is roughly a 2.3 pod. That is the largest driver to the $0.05 in terms of quarter over quarter step down. And then Jordan, could you just remind me the second part or the third part of your question there?
Just churn. So what do you think if churn was 1 point 3 in 4Q. What would it be in 1Q? And then just maybe full year expectation while we're at it.
The So that's in the greater than a megawatt capacity churn or less than a megawatt capacity churn looks like it's going to be basically in line.
And
I don't have the implied first quarter churn. I think The 80 steps down on a full year basis to call it like 69% for the full portfolio in the greater than a megawatt territory. But you can use 17 megawatts as a proxy and you can see our quantities of exploration, tightstones. I don't have all the ingredients to give you the exact math in the Q1 measurement right here.
The next question comes from Jon Petersen of Jefferies. Please go ahead.
Okay, thanks. Just a couple for me. So The recurring CapEx in the 4th quarter looks a little elevated. I wonder if there's just anything that we should be thinking about there and how it will trend into next year On a quarterly basis?
Yes. Not just for recurring CapEx, but I would say Some of the OpEx as well, you're seeing some of the COVID fluctuations. If you look at the I think it's Schedule 28, recurring CapEx stepped down to 30 as low as $34,000,000 in the Q1 of 20 $30,000,000 $38,000,000 In the Q2 of 2020, then back up to 53% and 83%. So we did have a little bit of a catch up period in terms of, call it, timing. As you can see, John, our guidance for recurring CapEx for all of 2020 is roughly the same numbers as prior year, so $220,000,000 I believe or $230 ish million.
So we had a little bit of 4th quarter catch up in there. Just the only major items we had some refreshed capital and some second generation space That I think we're converting to colocation when a PDV or a TKF customer had exited. So That kind of hits that's not 1st generation, so it hits through the recurring CapEx. I think that's a product of The maturation of our portfolio and re clustering to new types of customers in different shapes and forms. But I wouldn't you can't just annualize that as next year.
You got to look to our guidance table for a more appropriate view for the full year 2021.
Okay. All right. And then I kind of wanted to ask about market rents. I mean, do you guys have a sense maybe if we just think about your greater than 1 megawatt tenant, Do you have a sense of where the mark to market is on in place rents versus market rents? And I know you talked about your leasing spreads being relatively flat this year.
But I mean based off the market dynamics that you're Dean, what are your expectations for rent growth over this year and over the next few years? Are we to a point where we can start to see Rent start to grow again?
I think there's a couple Relevant data points to look at that. There's obviously the activity we are seeing coming through our renewal activity both in the 4th quarter As it trajected throughout the year and we had consistent progress to the point where we had positive plus 1 megawatt cash renewal spreads In 4Q, some of the stronger markets were renewed and shining through in there. Santa Clara was a standout in that renewal. We have not our guidance includes a slightly negative outlook for the cash mark to markets, but I know we use the language there instead of exact numbers. I think our language is less conservative than it was last year.
So I think we're moving into better territory. If you look at just the lease expiration schedule in 2021, I think we're getting into a better place both in volume, mix and mark to market relative to recent history. You called out particularly the greater than megawatt category, which is, call it, 7.5 ish percent of our expirations, down from a high of, call it, over 10% at one point. It's pretty diverse with no market other than Ashburn being even greater than 1%. And the mix geographically, You're seeing a sizable part component from not only Santa Clara, our tightest U.
S. Market, but also our international markets in the coming contracts. And then last but not least, just looking at the new signings, because that's more of a forward indicator of what to come. The by and large in the greater than megawatt category, I saw we saw pretty good firmness in the pricing. And as I say strengths in the Americas were, call it, New York, Chicago, I'm just going to look at the schedule in my view.
In the greater than a megawatt, you had pretty much stability in both Northern Virginia and Portland. Again, it goes back to that structure I mentioned previously where the customer is taking down shelves at pre committed rates at their discretion. So Really not room for negotiation there and the desire for them to grow with adjacency. And then EMEA, we saw strength in the greater than megawatt plus category for Zurich And Marseille were particular standout markets. And then last but not least, Singapore, that market has been a star.
I think you're going to see that continue Into 2021 and that is certainly a market where we're doing a sizable amount of megawatt plus activity as well.
The next question comes from Michael Rollins of Citi. Please go ahead.
Thanks and good afternoon. Curious on 2 things if I could. The first is if we turn to Page 26 of the supplemental, you provided development yields by Regions that you're expecting and just curious for your take on the movement over the last few quarters, Where it seems like North America has moved up a little bit, EMEA is down a little bit, Asia Pac near the level On this page and where do you see that going over the next couple of years based on the activity and the demand In the pipeline. And just separately, I was curious to go back to one of the comments I think Bill made at the beginning of the call, Describing that some of the larger customers are choosing a select number of global data center partners and curious just on that theme, Are you seeing a greater percentage of your large customers embrace multiple providers? Or are you Seeing more of a winner take all evolution where one data center provider could take the disproportionate share of business from some of these customers.
Thanks.
I'm going to give Bill the honors to answer the second part of the question first, and then I'll come back and To the numbers questions on development cycle on Page 26.
Thanks for the question. We're definitely seeing a shrinking of the number of participants in the business. I think that clearly plays to our strengths. But I think that COVID in particular Has demonstrated the importance of having a very credible counterparty on the other end of these partnerships. And we've received excellent feedback from our partners, particularly among the hyperscalers about Our procedures around not just COVID, but some of the other social unrest that has occurred in the last Several quarters.
And then Michael, on your second question, I mean, I think there's a few observations and some of this is repetitive. The development pipeline, 1, what you're missing from here is because it's a unconsolidated Self managed joint venture, Ascenty, is not on the schedule, but we've seen tremendous activity in Latin America, Including continued growth in Brazil, not only our first but second customer into San Diego, Chile and probably We expect to experience the same in terms of our second customers landing in New Mexico City. On this schedule, The volume has stepped up about 13% to 221.5 Megawatts. The pre leasing has remained roughly intact at 55%. You go market by market, I think you're accurate in seeing this trend of A larger and larger share of our new capacity capital going outside the United States.
The Americas region is a little muted because we delivered capacity that was 400% pre leased in Ashburn and the Shell, Which will show up with megawatts on the schedule, I think in a quarter or so, just hasn't popped in here. But I still think the thesis is constant And you're seeing also a year over year improvement on the yields in the Americas. And I think another Relevant data point is the non U. S. Markets are also becoming more diverse.
In EMEA, As I rattled off at the very beginning of the call, rather ineloquently, was across 6 different EMEA markets with north of Omegawatt Signings, you can see in the schedule from Amsterdam to Zurich, numerous markets with capacity coming online. And I think the same phenomenon is going to happen Hours continue to happen in the APAC region as well.
Thanks.
The next question comes from Sami Badri of Credit Suisse. Please go ahead.
Hi, thank you. The first question is on interconnection. You reported the interconnection in the backlog, but could you just give us some color in terms of how that backlog is mapping to the respective regions? That's the first one. And then the second one is, may Bill, Andy, anyone can really address this is, has digital adopted maybe a different philosophy on Speculative construction versus only building with pre leases in hand and has kind of the playbook changed a little bit just given the very rapid And high volume leasing that tends to come in pretty big cycles that we've seen.
Has the strategy kind of changed a little bit? And No. We'll leave it at that.
Bill, do you want to again, we'll try to do the same format. You take the second question first On the strategy and then I can go back to the Entertain Connection details.
Sure. So I would say that The strategy today is we don't really go into any of these new markets without a pre lease in hand, Without an anchor. So that's what we've done in Chile, that's what we've done in Mexico. Now we did buy existing businesses obviously in Croatia and Greece, So that's different. But in general, I think we're looking for one of our good customers that and probably more than one to tell us they really want us To go into that market and then they'll sign an anchor lease with us.
As far as existing markets are concerned, Those are almost always expansions with existing customers. And that business to Be quite candid, it's fast and furious. In some instances, I would say the challenge is just keeping up with Demand in existing markets with particularly the hyperscalers.
And then Sami, on your question on interconnection. So quite pleased with interconnection signing contribution. Yes, it stepped down quarter over quarter, but it was up 4% from the prior quarter and 3Q was quite A outsized winner in terms of interconnection signings. The cast of characters are Similar in terms of the type of verticals industry wise that we've experienced in the past. Regionally, Some of the start, I would say the EMEA region was definitely a standout in this category, Not just in the Q4, but on a full year basis.
I believe their interconnection revenue was called up into the double digit type growth trajectory. I also I know you didn't quite ask this question. I also really look at these things part and parcel with the less than a megawatt signings Because they also often go hand in hand in terms of our most interconnection rich type customers day 1 and certainly post Landing with Digital, I would say we put up the 3rd quarter or 4th quarter in a row of Consecutive growth in that category off a really strong 3Q. We put a record year up in call the interconnection And less than a megawatt are colocation type signings category. Those were also led by EMEA, but APAC played a great role.
We've launched now Our colocation offering in Osaka, Singapore and Hong Kong and our 1st carrier neutral offering in Seoul, South Korea right around the corner. So great early days in that category as well regionally. So we're definitely expanding The breadth of the product offering across more and more markets, and pleased with the success, we're seeing in both the interconnection and the, Call it enterprise and network oriented, less than the megawatt category.
Got it. Thank you, Bill. And actually just one quick follow-up, and this is pertaining mainly to Europe and since you guys have now kind of integrated InterXion and you've looked at some of the pricing in each of the respective markets, Do you expect the cadence or at least the stabilization of pricing or I mean maybe that's the wrong way to phrase it, the right way to phrase it is Marking it up slightly, right, to reflect pricing that looks more comparable to U. S. Markets.
Do you guys see The rate at which you guys are increasing, is that starting to moderate? Or is pricing relatively flat and consistent and not really changing our volume much In Europe, I just want to understand kind of like what's going on from a local type of pricing perspective. And I think I'm mainly referring to the 0 to 1 megawatt Type leases specifically?
Thanks, Jamie. That was a very elegant way of Asking if we're going to increase cross stack prices in Europe, I think. But I'm going to pass this over to Chris In a second, but I think we're very focused on delivering as much value to our customers in terms of increased performance, increased security, increased efficiency and do that in a global platform offering here at Platform Digital. So it's not an episodic one market, it has to match another market. We're Very attuned to the customer needs and also supply demand nature in each market.
But maybe Chris, do you want Talk a little bit about our product road map and how pricing relates to that.
No, absolutely appreciate it. And Definitely, we look at driving value to our customers through our global interconnected platform, which Bill stated in his prepared remarks that double our cross connect count in 2020 is pretty impressive. And particularly to EMEA, We are constantly watching exactly how our communities of interest have really grown there with network dense, Highly connected assets as a part of Platform Digital, but we absolutely align our cross connect pricing based on the market dynamics within EMEA. And we'll continually evolve our platform to ensure that pricing is aligned with the value that we see these Communities of interest continually getting out of the platform. But one of the things that we're very happy about is we continually see the attach rates Within each of these markets continually increasing and its quarter hour platform going forward that we remove complexity from the customers so they can get access to that value In a more simplistic fashion.
So you'll see that play out over the coming year on exactly how we achieve that, but It's something that we're constantly watching and making sure that the customers are getting the true value that they need in a very simplistic fashion.
That concludes the question and answer portion of today's call. I'd like to turn the call back over to CEO, Bill Stein, for his closing remarks. Bill, please go ahead.
Thank you, Andrea. I'd like to wrap up our call today By recapping our highlights for the Q4 as outlined here on the last page of our presentation. First, we further strengthened our connections with our customers, meeting more of their needs beyond the U. S. And reaching a much broader set of enterprise customers with our enhanced colocation and interconnection product offerings.
We delivered extremely solid current period financial results, delivering full year FFO per share that was nearly 4% above our initial guidance. We extended our global platform, providing customers with a gateway into Southeastern Europe and runway for growth around the world With strategic land purchases and new development starts. And last but not least, we further strengthened our balance sheet, Extending our average duration, while further ratcheting down our average cost of debt by locking in attractive pricing on long term capital And retiring high coupon debt and preferred equity. I'd like to conclude today's call by saying thank you to the entire Digital Realty family, but particularly our frontline team members in critical data center facility roles We have kept the digital world turning in the midst of this global pandemic. I hope all of you stay safe and healthy,
concluded. Thank you for attending today's presentation and you may now disconnect.