President and Chief Financial Officer at Digital Realty Trust
Thank you, Bill. Turning to Page 5. As Bill noted, we signed record bookings of $176 million, with a $13 million contribution from interconnection during the third quarter, excluding the results from Teraco. The greater than a megawatt business in the Americas was the big driver of this quarter's record leasing at nearly $100 million signed. Sub-1 megawatt plus interconnection accounted for 24% of the record quarterly bookings while the shell portion of a large multisite enterprise build-to-suit deal fell into our other category.
Importantly, as we've discussed, we have meaningfully shifted our cadence toward further insulating our portfolio from the effects of inflation through the addition of CPI-based escalators into our new leases. While more than 95% of our portfolio includes rent escalation causes, less than 20% are specifically tied to CPI, while the balance are fixed. And our highest leasing volume quarter ever, we were able to achieve CPI-based escalators on 40% of the leases signed in the quarter, which demonstrates our resolve and our customers' acknowledgment of this important factor. The balance of our leases signed in 3Q include fixed rent escalators.
Moving on to markets. In North America, Portland and Dallas were particularly strong with large deals landing in each of those metros, while demand in Northern Virginia also remained high. In EMEA, totals were consistent with expectations with particular strength in Paris. While Sao Paulo led in LATAM, and Osaka led the APAC region. These deals drove additional starts within our development pipeline, which grew to over 400 megawatts, but is also now more than 60% pre-leased mitigating much of the risk related to this capital spend and providing significant visibility into future revenue.
As Bill touched on in his remarks, we signed four leases in the quarter with a large multinational financial services customer that has fully embarked upon its digital transformation journey. This large multi-site, multi-market build-to-suit transaction drove the upside in our greater than 1 megawatt North America leasing and also served to increase our development pipeline sequentially while reducing our anticipated yields.
Importantly, this deal is structured as a yield on cost development supported by a long-term triple net lease to a strong investment-grade credit with fixed escalators, which serves to insulate Digital Realty from construction costs, and operating expense volatility. Excluding this transaction, our development life cycle average yield will be closer to the yield we presented last quarter.
During the third quarter, we added another 103 new customers, continuing the 100-plus new logos we've added each quarter since the closing of the Interxion transaction 2.5 years ago. Key customer wins in the quarter include a Global 2000 luxury goods maker is expanding its capabilities on PlatformDIGITAL to add data exchange with its strategic cloud providers to its existing capabilities.
A Global 2000 multinational technology manufacturer is expanding its hybrid IT capability in multiple metros across two global regions with PlatformDIGITAL. A Global 2000 retailer is rationalizing its data centers and joining Platform Digital as part of its hybrid IT architecture to have greater proximity to a key cloud service provider while enhancing both performance and ecosystem benefits. A Global 100 top insurance company is rationalizing its data centers and moving to PlatformDIGITAL to gain strong access to two leading cloud service providers.
Landing with us as a new logo in 4Q '21, a Global 2000 US energy provider expanded into two more metros with Digital Realty as it continues to rearchitect its network as part of a long-term hybrid IT transformation. And a Global 2000 aerospace and defense contractor is rationalizing its data center portfolio while supporting the re-architecture of its network and interconnecting with cloud providers on PlatformDIGITAL.
Turning to our backlog on Page 7. The current backlog of signed but not yet commenced leases grew to $466 million by quarter end as our record signings were partially offset by $90 million of commencement. The lag between signings and commencements moved up to 17 months for the leases signed in the third quarter due to the large multisite enterprise build-to-suit deal discussed by Bill a moment ago. Excluding this deal, our sign to commence live was under eight months, consistent with our historical average. Approximately 25% of our record backlog is slated to commence in the fourth quarter. While another 45% will commence in 2023, split fairly evenly throughout the first and second halfs of next year.
Moving on to Page 8. We signed $154 million [Phonetic] of renewal leases during the third quarter that rolled down 0.5% on a cash basis. Renewal rates for 01-megawatt renewals were positive across each region and up 3.1% overall, demonstrating the criticality of these deployments and the differentiation of our facilities. This product segment has historically experienced steadily positive renewal rates and cash renewal rates have steadily increased throughout this year.
After two consecutive 3-plus percent bumps in 1Q and 2Q, the cash mark-to-market was weighed down by the greater than 1 megawatt segment in the third quarter. Despite this result, we are confident in a slightly positive cash releasing spread for the full year 2022. Importantly, we are encouraged by the general trajectory of market rents across our product line. We expect that the dislocation and volatility of capital markets coupled with rising costs and the reduced availability of power in several markets, including the world's largest market,Loudoun County, Virginia, is constraining the ability to bring on new data center capacity despite the secular demand for data center infrastructure.
With regard to power delivery in Northern Virginia, we are continuing to work with the primary power provider to ensure appropriate allocations with an acute focus on capacity needed to support our customers in this market. We have an incredibly unique footprint in Loudoun and a set of capabilities that we are working to tap into in order to take advantage of this backdrop of continuing tightening market fundamentals.
In terms of operating performance, total portfolio occupancy rebounded by 80 basis points sequentially, driven by the strong commencements. These improvements in our occupancy come despite our active intention to grow our global colocation inventory in order to meet the growing demand of our expanding customer base.
Same capital cash NOI growth fell 7.3% in the third quarter, negatively impacted by another 480 basis point FX headwind. This is disappointing on the surface but once the noise is removed, the improving operating picture that we have been painting starts to emerge. On a constant currency basis, data center operating revenue, rental revenue interconnection was actually up 10 basis points year-over-year and improved by 120 basis points sequentially, demonstrating the turn that has started to take hold in our core operations. The sequential step-up was supported by a 50 basis point occupancy improvement over the second quarter, along with the benefits of the positive releasing spreads we've seen year-to-date.
Turning to our risk mitigation strategies on Page 9. 56% of our third quarter operating revenue was denominated in US dollars, with 21% in euros, 6% in Singapore dollars, 5% in British pounds and 2% in Japanese yen. The US dollar continued to strengthen over the last few months, negatively impacting same capital revenue growth by 530 basis points and NOI growth by 480 basis points year-over-year, as shown in our constant currency analysis on Page 10. This strong headwind contrasts with typical FX impacts of 50 to 100 basis points in either direction during the periods with more normal FX volatility.
While the outsized depreciation of the euro this year has been a major driver of the headwinds for our P&L, it also represents the lion's share of our development pipeline. To be clear, we are operating and then investing locally rather than repatriating proceeds into US dollars.
Our operations, investment pipeline and funding in locally-denominated debt serve as a natural hedge. As we discussed on our call last quarter, given the growth of our global portfolio, along with heightened FX volatility, we took a closer look at our hedging strategy during the third quarter and executed additional swaps to mitigate our remaining FX exposure.
In August, we executed a US dollar to euro currency swap against an existing $1 billion tranche of 2027 notes outstanding. And in late September, alongside our USD550 million bond, we swapped those borrowings in the euro and Japanese yen, which also reduced the effective interest rate on those five-year notes to just 3% versus the 5.55% coupon achieved via the offering.
In terms of earnings growth, we reported third quarter core FFO per share of $1.67, which is 1% higher on a year-over-year basis and 3% lower sequentially due to the negative impact of FX, higher interest and operating expenses and the initial dilution we incurred from the closure of Teraco, which is consistent with the forecast we provided last quarter. On a constant currency basis, core FFO was 6% higher year-over-year but down $0.01 sequentially. The reported core FFO underperformance versus our prior expectation for the quarter was purely a function of greater-than-expected FX headwinds.
Looking forward, we expect core FFO per share will remain under pressure from stiff FX headwinds given the appreciation of the US dollar, though this should be offset by core growth. As you can see from the bridge on Page 11, we expect FFO will remain flat sequentially in the fourth quarter as FX and interest expense headwinds are partly balanced by NOI growth.
Accordingly, we've adjusted our underlying guidance assumptions to reflect the continued pressures of FX and interest rates. We are also updating our core FFO per share guidance range for the full year 2022 to $6.70 to $6.75, reflecting a $0.075 per share adjustment at the midpoint of the range. Importantly, due to the sharper-than-expected move in interest rates since our last call, we are reducing our constant currency core FFO per share range by $0.025 at the midpoint to a new range of $6.95 to $7 for 2022, which represents approximately 7% growth over 2021. We expect currency headwinds could represent a 400 to 500 basis point drag on full year 2020 revenue and core FFO per share growth.
A review of our leverage is on Page 12. Our reported leverage ratio at quarter end was 6.7 times, while fixed charge coverage is at 5.5 times. We drew $400 million down from last September's forward equity offering as part of our funding for Teraco. So pro forma for the remaining forward equity and adjusting for our full quarter's contribution from Teraco, our leverage ratio drops to 6.4 times while pro forma fixed charge coverage is 5.7 times.
While leverage is above our historical average, we have bolstered our liquidity to ensure that we have the capital in hand to fund our committed development spend throughout the end of next year and maintain a comfortable cushion. Since our last earnings call, we have raised or received commitments for approximately $2 billion of debt capital at an effective blended average of just over 3%. These include more than $650 million of term loan commitments received subsequent to quarter end.
With cash and forward equity outstanding totaling more than $700 million, we have increased our current available liquidity to approximately $3 billion. We expect to see leverage moderate back towards our longer-term target over time through a combination of noncore dispositions, joint ventures of core holdings, lease-up of available capacity and the retention of free cash flow.
As Bill discussed, the current capital markets environment and increased cost of capital have led us to sharpen our lens and prioritize new investments to those that are the highest strategic merit and offer the best potential risk-adjusted returns. Our financial strategy includes a diverse menu of available capital options while minimizing the related cost of our liabilities. The execution against this financing strategy reflects the strength of our global platform, which provides access to the full menu of public as well as private capital and enables us to fund our strategic objectives.
As you can see from the chart on Page 13, our weighted average debt maturity is about 5.5 years, and our weighted average coupon is 2.4%. Approximately three-fourth of our debt is non-US dollar denominated, reflecting the growth of our global platform. More than 80% of our net debt is fixed rate and 97% of our debt is unsecured, providing the greatest flexibility for capital recycling.
Finally, we have no meaningful near-term debt maturities and a well-laddered debt maturity schedule. We repaid the remainder of our 2022 debt earlier this month and have only a small Swiss bond maturing in 2023.
This concludes our prepared remarks, and now we'll be pleased to take your questions. Operator, would you please begin the Q&A session.