Keith Taylor
Chief Financial Officer at Equinix
Thanks, Charles, and good afternoon, everyone. I hope you're all doing well and enjoying the summer months. I must say it was great to be back in New York City spending time with many of you at our June Analyst Day in person. As you might have guessed, we were excited to share with you our views on the expanding market opportunity. Our continued ability to manage through this dynamic and complex global environment, while working to maximize the value of our business. And perhaps, most importantly, share our thoughts on how we believe we can deliver durable shareholder value. Now as you can see from our Q2 earnings report, we again delivered solid results, while addressing many of the complexities affecting our business. We had solid gross and net bookings and positive pricing dynamics reflecting the continued momentum we see in the market. Overall, we continue to focus on driving a higher yield on both our new and existing investments.
On a constant currency basis, including our net positive pricing actions, Global MRR per cabinet was up $39 quarter-over-quarter to $2,156 per cabinet. Now given the tight supply environment across many of our metros and the high utilization levels across our portfolio, we remain very focused on our strategy of putting the right customer with the right application into the right IBX. Also, we're being particularly selective at backfilling space in certain constrained markets, focusing on high price points and increased power densities. As a result, the timing of these deployments may create some fluctuations in our quarterly net cabinet billing metric, an outcome we're actively managing across all three regions. This is positively offset by strong stabilized asset growth, higher MRR per cabinet and better returns on our invested capital.
Turning to some of the macro factors affecting our business. We remain pleased with how the organization has mitigated the impacts of energy price volatility across our business and with our customers. Concessions and distributes remain low and our cash collections are in line with historical trends. As it relates to our foreign operating currencies, we continue to hedge where appropriate to dampen the volatility attributed to the actions of many central banks to adjust interest rates. Also, we made some modest FX to our 2023 outlook, largely attributable to the recent devaluation of the Nigerian naira and the weaker Japanese yen, two of the currencies that we do not hedge.
Now let me cover the highlights from the quarter. Note that all comments in this section are on a normalized and constant currency basis. As depicted on slide four, global Q2 revenues were $2.018 billion, up 14% over the same quarter last year due to strong recurring revenues, power price increases and the timing of xScale nonrecurring fees. As we've noted before, nonrecurring revenues, particularly those attributable to our xScale business and certain custom installation works are inherently lumpy. Hence, NRR was down quarter-over-quarter as planned. But given our significant scale pipeline, we expect to see a meaningful step-up in NRR in the second half of the year. Q2 revenues, net of our FX hedges, included a $3 million FX headwind when compared to our prior guidance rates.
Global Q2 adjusted EBITDA was $901 million or 45% of revenues, up 7% over the same quarter last year due to strong operating performance, including an $11 million one-off software expense related to our Americas managed services business and higher variable salaries and benefit costs. Also, Q2 saw certain EMEA energy contracts reset at higher average rates resulting in increased net utility costs as forecasted. Q2 adjusted EBITDA, net of our FX hedges included a $2 million FX headwind when compared to our prior guidance range and $3 million of integration costs.
Global Q2 AFFO was $754 million, above our expectation due to strong business performance and lower net interest expense. Q2 AFFO included a $1 million FX headwind when compared to our prior guidance range. Global Q2 MRR churn was 2.3%. For the full year, we continue to expect MRR churn to average at the lower half of our 2% to 2.5% quarterly guidance range.
Turning to our regional highlights, whose full results are covered on slides five through seven. On a year-over-year normalized and constant currency basis, EMEA and APAC were our fastest-growing regions at 21% and 16%, respectively. Although when excluding the impact of the benefit attributed to the power price increases, EMEA and APAC region growth rates were 8% and 11%, respectively, while the Americas region grew 7% year-over-year. The Americas region had another solid quarter with continued strong pricing trends, solid momentum from our channel and public sector teams and healthy exports across the global platform. We had strong activity in Boston, Chicago and Culpeper metros and the Canadian business.
Our EMEA business delivered a solid quarter with firm pricing, continued lower churn and a healthy step-up in deal volume. Revenue was down slightly due to the timing of large NRR deals between quarters. We had strength come from our Amsterdam, Dublin and Frankfurt metros, while booking a substantial space and power deal in Lagos, Nigeria with a large multinational energy company, highlighting the momentum across our platform, including our MainOne assets. And finally, the Asia Pacific region had a strong quarter with record net bookings and firm deal pricing as well as strong imports to our Mumbai, Osaka and Singapore markets. And as evidenced by the number of new expansions, Chennai, Jakarta, Johor, Kuala Lumpur, customer interest in expanding their footprint into new Asian markets is high, and we're investing behind this demand.
And now looking at our capital structure, please refer to slide eight. Our balance sheet increased slightly to approximately $31.6 billion, including an unrestricted cash balance of over $2.3 billion. As expected, our cash balance decreased slightly quarter-over-quarter due to our investment in growth CapEx and a quarterly cash dividend, offset by our strong operating cash flows. Our net leverage remains low at 3.6x our annualized adjusted EBITDA. And as mentioned previously, we plan to opportunistically raise additional debt capital and reduce rate environments where we currently operate. This will create both incremental debt capital to fund our growth and placed a natural hedge into these markets.
Additionally, during the quarter, we executed about $200 million of ATM forward sale transactions, which will be settled in early 2024 to help fund our 2024 growth plans alongside our other sources of capital.
Turning to slide nine. For the quarter, capital expenditures were $638 million, including a recurring CapEx of $40 million. Since our last earnings call, we opened seven retail projects across both the Americas and EMEA regions and two xScale projects in Frankfurt and Tokyo. Revenue from owned assets increased to 64% of our recurring revenues for the quarter. We expect this trend to continue with over 85% of our expansion CapEx spend on owned or long-term ground lease properties, including 100% of our 16 bills in the Americas.
Our capital investments delivered strong returns as shown on slide 10. Our now 174 stabilized assets increased revenues by 10% year-over-year on a constant currency basis. Taking out the benefit attributed to the power price increases, stabilized assets increased 7% year-over-year. Our stabilized assets are collectively 85% utilized and generate a 27% cash-on-cash return on the gross PP&E invested.
And finally, please to refer to slides 11 through 15 for our updated summary of 2023 guidance and bridges. Do not all growth rates are on a normalized and constant currency basis. For the full year 2023, we're maintaining our underlying revenue outlook with expected top line growth of 14% to 15% or 9% to 10%, excluding the impact of power cost pass-through to our customers, a reflection of our continued strong execution. We're raising our underlying 2023 adjusted EBITDA guidance by $20 million, primarily due to favorable operating costs and lower integration spend. And we're raising our underlying AFFO guidance by $28 million to now grow between 11% and 14% compared to the previous year. AFFO per share is now expected to grow between 9% and 11%.
CapEx is expected to range between $2.7 billion and $2.9 billion, including approximately $120 million of on balance sheet xScale spend, which we expect to be reimbursed as we transfer assets into the JV later this year or early next year and about $220 million of recurring CapEx spend.
So let me stop here, and I'll turn the call back to Charles.