Jeffrey S. Finnin - Chief Financial Officer
Management
Thanks, Steve, and hello, everyone. I'll begin my remarks today by reviewing our Q2 financial results. Second, I will update you on our development CapEx and our balance sheet and liquidity capacity and, third, I will discuss our revised outlook and guidance for the remainder of the year. Turning to our financial performance in the second quarter, data center revenues were $79.5 million, a 9.5% increase on a sequential quarter basis and a 24.7% increase over the prior year quarter. Our Q2 data center revenue consisted of $66.6 million in rental and power revenue from data center space, up 9.2% on a sequential quarter basis and 24.5% year-over-year, $10.6 million from interconnection revenue, an increase of 3.7% on a sequential quarter basis and 23.3% year-over-year, and $2.3 million from tenant reimbursement and other revenues. Office and light industrial revenue was $2 million. Our second quarter FFO was $0.68 per diluted share and unit, an increase of 6.3% on a sequential quarter basis and a 33.3% increase year-over-year, excluding non-recurring items in Q2 2014. As Tom mentioned, FFO per diluted share and unit increased 19.3% year-over-year as reported in unadjusted. Adjusted EBITDA of $40.6 million increased 6.9% on a sequential quarter basis and 33.2% over the same quarter of last year, excluding non-recurring items. Our adjusted EBITDA margin of 49.8% increased 340 basis points year-over-year and declined 100 basis points sequentially. If you recall, our adjusted EBITDA has historically shown a seasonal decline on a sequential basis in both the second and third quarters, generally related to seasonal increases in the cost of power. Related, our Q2 results represent revenue growth flow through to annualized adjusted EBITDA and FFO of 64% and 51% respectively, which is a significant improvement on a year-over-year basis. Sales and marketing expenses in the second quarter…