EQIX
#Let me take the first one, and then I will pass it to <UNK> and <UNK> for the second one.
As it relates to stabilized assets, right now, as I said we're at 84% utilized.
I think for all intents and purposes, we would target between ---+ we think 90% or greater, and realistically somewhere between 90% and 95% is a realistic assumption that we should be able to drive our utilization level to.
I think that's an area of comfort, <UNK>, that over a period of time, recognizing some of these assets were very selective in how we fill them up.
And what I mean by that, if it's a network dense asset and we don't have a lot of incremental capacity, we are willing to let that asset sit there for a period of time looking for the right customer with the right application to go into that asset.
Once we get there, it's reasonable to assume your 90% plus utilized.
On the revenue growth and favorable pricing, <UNK>, I would just give you a little color and maybe <UNK> and <UNK> might have something to add.
I mentioned in my comments in the beginning that yield across all regions continues to be strong.
Our global yield was up $40, or 2% quarter on quarter on a constant currency basis.
So that was roughly 0.5% in the Americas, 2% in Asia and Europe.
Pretty strong pricing in the regions, primarily because of the focus that our sales and marketing teams have on targeting specific workloads, and focusing our value propositions around that type of application workload.
Historically, as we've always mentioned, blended in with that, where appropriate, we are pursuing larger magnetic footprints that are helping the overall ecosystem value, and you should expect us to continue to compete for those.
That will advance our cloud agenda.
Generally speaking, we are doing a very good job of qualifying and bringing the right types of workloads into the right locations, and that's served us very well from a churn perspective, and that's served us very well from an MRR per cab, and we expect it to remain firm, going forward.
<UNK>, we did not hear all of that.
I think I have the gist of your question, which was to a comment on M&A and the commentary we see around the world.
Is that the gist of it.
Sure.
I'll start, and maybe <UNK>, if you have anything to add, please jump in here.
Fair to say, guys, that we have our eyes on the same consolidation activity that you are all reading about in our industry.
We're still focused, as I mentioned last quarter, on our inorganic strategy to extend our current leadership position around fiber network density.
Secondly, around scaling our platform, and then third around enhancing our interconnection position.
So, we are always evaluating options to accomplish those three objectives, and we will continue to do that.
If there was a transaction that might compliment that strategy, and create significant shareholder value, you should feel confident that we'll consider it.
In terms of our Europe business, we continue to be very pleased with what's going on over there, and our results off last quarter and certainly this quarter.
As we mentioned in previous calls, our business in Europe grew 21% last year, and on a first quarter year on year basis, grew 19% in this first quarter.
So, our European business, because it's connected to a global platform is growing faster than the broader EU market.
As you also heard, we have significant momentum on interconnection in Europe.
All in all, yes, we're watching this stuff, and our business in Europe, we are very happy with.
<UNK>, you are dead on.
Just as we look to Q2, not only do we have the merit increases that took effect in March, we see the cost associated with that moving into Q2 and beyond, we have all the new headcount, all of the new hires.
Then, we have a higher utility line coming in Q2, as well.
As you know, typically from a seasonal perspective, our highest cost of utility comes in the second and the third quarter in the Americas region, and so we are absorbing roughly another ---+ if my memory serves, another $6 million to $8 million of utilities in the second quarter, relative to what we were going to spend in Q1.
Then, we are continuing to progress with our integration of the ALOG investment.
We spent about $1 million in Q1 on the ALOG integration, and so we expect to spend more in Q2 also with the rollout of our eco-initiative.
All that to say is, there's some timing.
Therefore, that's why you see, despite that, we see some step downs of costs that we had in Q1, will be replaced with costs that I just talked about in Q2.
Then, we think that we can hold our SG&A relatively flat for the rest of the year.
As it relates, then, just to the net interest expense, my reference to the fact that there's a certain amount of interest that gets capitalized into our assets, and it was roughly a $12 million change from what we previously disclosed.
Because of that, although you see an improving AFFO, the real value of the AFFO increase at this stage of the game was the improved operating performance.
$10 million was really to capitalization, and that, of course, has no meaningful ---+ even though our AFFO payout ratio goes down, there is no fundamental shift that really took place.
Because that capitalized interest, it gets treated differently for tax purposes.
So, that's the primary reason for the interest step down.
We're seeing all those things, <UNK>.
<UNK>, do you want to take a crack.
Thanks, <UNK>.
<UNK>, that was very thorough.
The only thing I'd add to that ---+ and it's a great question, because there's a lot of activity going on.
As I said in the comments in the beginning today, our strategy is working.
You see the results from the firm yield and the other metrics.
Interconnection continues to grow.
We feel like we're executing on all the right items.
So, you should expect us to continue with more of the same.
Thank you.
That concludes our Q1 call.
Thank you for joining us today.
