So we do have some urgency to get that going. But I think our patients and prudence here and approach allowed us to prove right. sometimes better to be lucky than smart. If I would have known Ashford would have run out of power years ago, I would have — we wouldn’t have sold all that capacity we had to release at the time. But this time, we — the luck was our side.
Operator: The next question comes from David Guarino with Green Street. Please go ahead.
David Guarino: Thanks. Hey, Andy, on your comments, at least how I heard on a potentially very high ceiling for rental rates. As I kind of take that into consideration and look across the lease expiration table in the greater than one megawatt category it appears you guys have a pretty favorable mark-to-market rent opportunity over the next few years. Am I fair to make that assumption? Or is there a chance that some of your leases might have clauses that could limit how much you’re able to participate in the upside?
Andrew Power: Thanks, David. So the — I think you heard me loud and clear on where rates have come from and where they’ve gone and where they’re likely to continue to move and some of these markets haven’t even hit peak historical rates, if you look at the whole span of data center capacity. So I don’t think we’re at a rent bubble or near that necessarily and it’s been on the back of real constraints and build costs that have inflated and issues. So they are — I believe these rental moves are justified. I think you will continue to see the cash mark-to-markets flow through in our favor. We did call out in — throughout last year and in the script for this quarter that we had some episodic short-term renewals inflated our cash mark-to-market, but we think being, call it, 4% to 6% in that category overall is pretty in our favor.
And to your question on the bigger deals where you’re going to have these potential roll-ups, yes, we do have subsections of our contracts that have clauses that are certainly in the favor of our customer. When the market was quite the opposite of what it was today and it was filling baking capacity, we certainly had to succumb to some of those clauses that our customers. But they all often are very narrowly defined in terms of fixed duration of renewal time period and other bells and whistles. And when a customer, which they often do wants to negotiate outside of that box that opens up the contract renegotiations. And we try to collaborate with our customers to come into a mutually agreeable outcome. So that’s a long-winded way of saying, I don’t think we’ll be able to roll every one of those, call it, sub 100-plus megawatts directly up to the 140 or 150 or 160 or whatever we’re going in the market.
But I think we’ll — I do think there is going to be a positive mark-to-market in that category for some years to come.
Operator: The next question comes from Ari Klein with BMO Capital Markets. Please go ahead.
Ari Klein: Thanks. Andy, there’s a lot of moving parts that are impacting the 2024 guidance that I think Matt mentioned 10% EBITDA growth normalized for the deleveraging activity I guess as you move past some of the headwinds creating dilution, and as you noted, it seems like pricing and mark-to-market tailwinds should be here for a while. What kind of growth do you think you can deliver beyond 2024 on the bottom line from a longer-term standpoint?
Andrew Power: Matt, do you want to start us off on that one?
Matthew Mercier: Sure. Yes. So a couple of things. So Ari, thanks as we did mention, on a normalized basis in ’24 or a lot of — for the transactional activity that hit in ’23 and some — and what we expect in ’24. I do want to reiterate, we’re looking at normalized growth at 7% on revenue and 10% on EBITDA as you noted. And so ’24 is seeing the impact from the timing of those transactions and close where in ’23, there in the second half of the year, and ’24, we’re expecting them, as Greg noted earlier, where we’ve already got a decent portion of that under contract, those are closed in the first part of ’24. So creating some of that impacting on ’24 bottom line. And we did all that at the same time, again, just as a reminder, that we’re delevering over a turn.
If you look through all that, what we would expect is that we look at it in sort of two buckets in terms of cost of growth algorithm. First one being, we would expect on our stabilized same-store pool to have seen growth in that 3% to 4% area. On top of that, looking at our development pipeline, the favorable pricing, better yields and as those start to deliver in ’24 and ’25, we would expect to see another 1% to 2% on top of that too. Together, that gets us to kind of the mid- to high single digits that we should expect to see in ’25 and beyond.
Operator: The next question comes from Frank Louthan with Raymond James. Please go ahead. Frank, your line is open.
Frank Louthan: Sorry about that. I heard from several of your peers and some equipment companies and so forth about some macro issues that they’re seeing with elongated sales cycles and squeezing some IT budgets. You mentioned some cross-connect grooming you’ve seen. Are you seeing anything like that from your enterprise business or elsewhere from any sort of macro pressures in part of your business?
Andrew Power: Thanks, Frank. I want to have Colin tackle what we’re seeing in the, I’ll call it, enterprise sales cycle.
Colin McLean: Yes. Thanks, Frank, for the question. Appreciate it. As Andy highlighted, the pipeline across the board is robust and that’s both above and below one megawatt. And we certainly see our customers engaging consistently with this related to growing their platform globally. So that $53 million back-to-back strong quarters, I think the testimony to how we’re supporting their needs pretty well. In fact, 1,000-plus companies landed with us in Q4, which, again, I think it’s a strong growth testimony. In terms of time to close overall, I think we had highlighted previously a couple of hiccups, maybe early in the year, Q1, Q2 in terms of expanded time to close. We haven’t really seen that, honestly to date. It’s really flattened out.
