CyrusOne Reports First Quarter 2015 Earnings
Year-over-Year Normalized FFO and AFFO Growth of 17% and 27%,
Respectively, and New Lease Signings Totaling
Highlights
-
First quarter Normalized FFO of
$31.9 million and AFFO of$35.0 million increased 17% and 27%, respectively, over the first quarter of 2014 -
First quarter revenue of
$85.7 million increased 11% over the first quarter of 2014 -
First quarter Adjusted EBITDA of
$45.1 million increased 8% over the first quarter of 2014 -
Leased 60,000 colocation square feet totaling
$18 million in annualized GAAP revenue, with utilization remaining high at 89% -
Subsequent to end of quarter, announced acquisition of
Cervalis , significantly enhancing Company's geographic and customer diversification and strengthening product portfolio, with accretion to Normalized FFO per diluted share and unit
"CyrusOne had another great quarter, continuing its trend of solid
financial results for more than two years as a public company, and the
strong bookings performance reflects the attractiveness of our value
proposition," said
First Quarter 2015 Financial Results
Revenue was
Net operating income (NOI)1 was
Normalized Funds From Operations (Normalized FFO)3 was
Leasing Activity
Portfolio Utilization and Development
As of
Balance Sheet and Liquidity
As of
Dividend and Distribution
On
Additionally, today the Company is announcing a dividend and
distribution of
Guidance
Category |
2015 Guidance |
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Total Revenue |
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Base Revenue |
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Metered Power Reimbursements |
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Adjusted EBITDA |
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Normalized FFO per diluted common share or common share equivalent* |
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Capital Expenditures |
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Development** |
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Recurring |
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* Assumes weighted average diluted common share or common share equivalents for 2015 of 66 million. |
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** Development capital is inclusive of capital used for the acquisition of land for future development. |
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The annual guidance provided above represents forward-looking
statements, which are based on current economic conditions, internal
assumptions about the Company's existing customer base and the supply
and demand dynamics of the markets in which
Acquisition of
Subsequent to the end of the quarter,
In 2014
The transaction is expected to provide additional benefits to
-
Enhanced Geographic Diversification: The combination will
greatly enhance CyrusOne's geographic diversification, establishing a
presence in the Northeast with the addition of a platform that
includes 4 data centers in the
New York metropolitan market. -
Access to a High Quality Enterprise Customer Base:
Cervalis serves approximately 220 enterprise customers, with a particular niche servicing some of the world's largest financial institutions, including several Fortune 1000 companies. Approximately two-thirds of its fourth quarter 2014 revenue came from customers within the financial services industry. - Strengthened Product Portfolio: The transaction provides a set of interconnected data centers in one of the world's largest internet hubs, further enhancing the attractiveness of CyrusOne's National IX platform. Access to a high-end managed services offering provides a platform that can be selectively leveraged across CyrusOne's existing customer base to accelerate growth.
Upcoming Conferences and Events
-
Jefferies Global Technology, Media and Telecom Conference on
May 12-14 inMiami, Florida -
J.P. Morgan Global Technology, Media and Telecom Conference on
May 18-20 inBoston, Massachusetts -
NAREIT's
REITWeek Investor Forum onJune 9-11 inNew York City
Conference Call Details
Safe Harbor
This release and the documents incorporated by reference herein contain
forward-looking statements regarding future events and our future
results that are subject to the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. All statements, other than
statements of historical facts, are statements that could be deemed
forward-looking statements. These statements are based on current
expectations, estimates, forecasts, and projections about the industries
in which we operate and the beliefs and assumptions of our management.
Words such as "expects," "anticipates," "predicts," "projects,"
"intends," "plans," "believes," "seeks," "estimates," "continues,"
"endeavors," "strives," "may," variations of such words and similar
expressions are intended to identify such forward-looking statements. In
addition, any statements that refer to projections of our future
financial performance, our anticipated growth and trends in our
businesses, and other characterizations of future events or
circumstances are forward-looking statements, including statements about
the potential financial and other benefits of our proposed acquisition
of
Use of Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures that management believes are helpful in understanding the Company's business, as further discussed within this press release. These financial measures, which include Funds From Operations, Normalized Funds From Operations, Adjusted EBITDA, Net Operating Income, Adjusted Net Operating Income, and Net Debt should not be construed as being more important than comparable GAAP measures. Detailed reconciliations of these non-GAAP financial measures to comparable GAAP financial measures have been included in the tables that accompany this release and are available in the Investor Relations section of www.cyrusone.com.
Management uses FFO, Normalized FFO, Adjusted EBITDA, NOI, Adjusted NOI, and AFFO as supplemental performance measures because they provide performance measures that, when compared year over year, capture trends in occupancy rates, rental rates and operating costs. The Company also believes that, as widely recognized measures of the performance of real estate investment trusts (REITs) and other companies, these measures will be used by investors as a basis to compare its operating performance with that of other companies. Other companies may not calculate these measures in the same manner, and, as presented, they may not be comparable to others. Therefore, FFO, Normalized FFO, NOI, Adjusted NOI, AFFO and Adjusted EBITDA should be considered only as supplements to net income as measures of our performance. FFO, Normalized FFO, NOI, Adjusted NOI, AFFO and Adjusted EBITDA should not be used as measures of liquidity or as indicative of funds available to fund the Company's cash needs, including the ability to make distributions. These measures also should not be used as substitutes for cash flow from operating activities computed in accordance with U.S. GAAP.
1Net Operating Income (NOI) is defined as revenue less
property operating expenses. Amortization of deferred leasing costs is
presented in depreciation and amortization, which is excluded from NOI.
2Adjusted EBITDA is defined as net income (loss) as defined by U.S. GAAP before noncontrolling interests plus interest expense, income tax (benefit) expense, depreciation and amortization, non-cash compensation, transaction costs and transaction-related compensation, including acquisition pursuit costs, restructuring costs, loss on extinguishment of debt, asset impairments, (gain) loss on sale of real estate improvements, and other special items. Other companies may not calculate Adjusted EBITDA in the same manner. Accordingly, the Company's Adjusted EBITDA as presented may not be comparable to others.
3Normalized Funds From Operations (Normalized FFO) is defined
as Funds From Operations (FFO) plus transaction costs, including
acquisition pursuit costs, transaction-related compensation, (gain) loss
on extinguishment of debt, restructuring costs and other special items.
FFO is net (loss) income computed in accordance with U.S. GAAP before
noncontrolling interests, (gain) loss from sales of real estate
improvements, real estate-related depreciation and amortization,
amortization of customer relationship intangibles, and real estate and
customer relationship intangible impairments. Because the value of the
customer relationship intangibles is inextricably connected to the real
estate acquired,
4Normalized FFO per diluted common share or common share equivalent is defined as Normalized FFO divided by the average diluted common shares and common share equivalents outstanding for the quarter, which were 65,558,714 for the first quarter of 2015.
5Adjusted Funds From Operations (AFFO) is defined as Normalized FFO plus amortization of deferred financing costs, non-cash compensation, and non-real estate depreciation and amortization, less deferred revenue and straight line rent adjustments, leasing commissions, recurring capital expenditures, and non-cash corporate income tax benefit and expense.
6Annualized GAAP revenue is equal to monthly recurring rent, defined as average monthly contractual rent during the term of the lease plus the monthly impact of installation charges, multiplied by 12. It can be shown both inclusive and exclusive of the Company's estimate of customer reimbursements for metered power.
7Fortune 1000 customers include subsidiaries whose ultimate parent is a Fortune 1000 company or a foreign or private company of equivalent size.
8Recurring rent churn is calculated as any reduction in recurring rent due to customer terminations, service reductions or net pricing decreases as a percentage of rent at the beginning of the period, excluding any impact from metered power reimbursements or other usage-based billing.
9Utilization is calculated by dividing CSF under signed leases for available space (whether or not the contract has commenced billing) by total CSF. Utilization rate differs from percent leased presented in the Data Center Portfolio table because utilization rate excludes office space and supporting infrastructure net rentable square footage and includes CSF for signed leases that have not commenced billing. Management uses utilization rate as a measure of CSF leased.
10Net debt provides a useful measure of liquidity and financial health. The Company defines Net Debt as long-term debt and capital lease obligations, offset by cash, cash equivalents, and temporary cash investments.
11Liquidity is calculated as cash, cash equivalents, and
temporary cash investments on hand, plus the undrawn capacity on
About
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Condensed Consolidated and Combined Statements of Operations | ||||||||||||||||
(Dollars in millions, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended |
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Change | ||||||||||||||||
2015 | 2014 | $ | % | |||||||||||||
Revenue | $ | 85.7 | $ | 77.5 | $ | 8.2 | 11 | % | ||||||||
Costs and expenses: | ||||||||||||||||
Property operating expenses | 32.3 | 27.7 | 4.6 | 17 | % | |||||||||||
Sales and marketing | 2.9 | 3.0 | (0.1 | ) | (3 | )% | ||||||||||
General and administrative | 9.1 | 7.3 | 1.8 | 25 | % | |||||||||||
Depreciation and amortization | 31.1 | 27.6 | 3.5 | 13 | % | |||||||||||
Transaction costs | 0.1 | 0.1 | — | n/m | ||||||||||||
Asset impairments | 8.6 | — | 8.6 | n/m | ||||||||||||
Total costs and expenses | 84.1 | 65.7 | 18.4 | 28 | % | |||||||||||
Operating income | 1.6 | 11.8 | (10.2 | ) | (86 | )% | ||||||||||
Interest expense | 8.4 | 10.7 | (2.3 | ) | (21 | )% | ||||||||||
Income (loss) before income taxes | (6.8 | ) | 1.1 | (7.9 | ) | n/m | ||||||||||
Income tax expense | (0.4 | ) | (0.4 | ) | — | n/m | ||||||||||
Net income (loss) | (7.2 | ) | 0.7 | (7.9 | ) | n/m | ||||||||||
Noncontrolling interest in net income (loss) | (2.9 | ) | 0.5 | (3.4 | ) | n/m | ||||||||||
Net income (loss) attributed to common stockholders | $ | (4.3 | ) | $ | 0.2 | $ | (4.5 | ) | n/m | |||||||
Loss per common share - basic and diluted | $ | (0.12 | ) | $ | — | |||||||||||
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Condensed Consolidated Balance Sheets | ||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
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Change | ||||||||||||||||||
2015 | 2014 | $ | % | |||||||||||||||||
Assets | ||||||||||||||||||||
Investment in real estate: | ||||||||||||||||||||
Land | $ | 93.0 | $ | 89.7 | $ | 3.3 | 4 | % | ||||||||||||
Buildings and improvements | 820.8 | 812.6 | 8.2 | 1 | % | |||||||||||||||
Equipment | 382.7 | 349.1 | 33.6 | 10 | % | |||||||||||||||
Construction in progress | 121.0 | 127.0 | (6.0 | ) | (5 | )% | ||||||||||||||
Subtotal | 1,417.5 | 1,378.4 | 39.1 | 3 | % | |||||||||||||||
Accumulated depreciation | (350.1 | ) | (327.0 | ) | (23.1 | ) | 7 | % | ||||||||||||
Net investment in real estate | 1,067.4 | 1,051.4 | 16.0 | 2 | % | |||||||||||||||
Cash and cash equivalents | 26.0 | 36.5 | (10.5 | ) | (29 | )% | ||||||||||||||
Rent and other receivables | 53.9 | 60.9 | (7.0 | ) | (11 | )% | ||||||||||||||
Goodwill | 276.2 | 276.2 | — | — | % | |||||||||||||||
Intangible assets, net | 65.3 | 68.9 | (3.6 | ) | (5 | )% | ||||||||||||||
Due from affiliates | 1.4 | 0.8 | 0.6 | 75 | % | |||||||||||||||
Other assets | 86.4 | 91.8 | (5.4 | ) | (6 | )% | ||||||||||||||
Total assets | $ | 1,576.6 | $ | 1,586.5 | $ | (9.9 | ) | (1 | )% | |||||||||||
Liabilities and Equity | ||||||||||||||||||||
Accounts payable and accrued expenses | $ | 67.1 | $ | 69.9 | $ | (2.8 | ) | (4 | )% | |||||||||||
Deferred revenue | 65.5 | 65.7 | (0.2 | ) | — | % | ||||||||||||||
Due to affiliates | 9.1 | 7.3 | 1.8 | 25 | % | |||||||||||||||
Capital lease obligations | 12.6 | 13.4 | (0.8 | ) | (6 | )% | ||||||||||||||
Long-term debt | 679.8 | 659.8 | 20.0 | 3 | % | |||||||||||||||
Other financing arrangements | 51.3 | 53.4 | (2.1 | ) | (4 | )% | ||||||||||||||
Total liabilities | 885.4 | 869.5 | 15.9 | 2 | % | |||||||||||||||
Shareholders' Equity: | ||||||||||||||||||||
Preferred stock, |
— | — | — | — | % | |||||||||||||||
Common stock, |
0.4 | 0.4 | — | — | % | |||||||||||||||
Paid in capital | 518.9 | 516.5 | 2.4 | — | % | |||||||||||||||
Accumulated deficit | (72.5 | ) | (55.9 | ) | (16.6 | ) | 30 | % | ||||||||||||
Other comprehensive income | (0.6 | ) | (0.3 | ) | (0.3 | ) | 100 | % | ||||||||||||
Total shareholders' equity | 446.2 | 460.7 | (14.5 | ) | (3 | )% | ||||||||||||||
Noncontrolling interest | 245.0 | 256.3 | (11.3 | ) | (4 | )% | ||||||||||||||
Total equity | 691.2 | 717.0 | (25.8 | ) | (4 | )% | ||||||||||||||
Total liabilities and shareholders' equity | $ | 1,576.6 | $ | 1,586.5 | $ | (9.9 | ) | (1 | )% | |||||||||||
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Condensed Consolidated and Combined Statements of Operations | ||||||||||||||||||||||||||
(Dollars in millions, except per share amounts) | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
For the three months ended: |
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2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||
Base revenue | $ | 75.9 | $ | 75.4 | $ | 73.9 | $ | 71.4 | $ | 69.4 | ||||||||||||||||
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9.8 | 11.5 | 10.9 | 10.3 | 8.1 | |||||||||||||||||||||
Total revenue | 85.7 | 86.9 | 84.8 | 81.7 | 77.5 | |||||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||||
Property operating expenses | 32.3 | 32.0 | 33.0 | 31.8 | 27.7 | |||||||||||||||||||||
Sales and marketing | 2.9 | 3.1 | 3.2 | 3.5 | 3.0 | |||||||||||||||||||||
General and administrative | 9.1 | 9.9 | 9.0 | 8.4 | 7.3 | |||||||||||||||||||||
Depreciation and amortization | 31.1 | 30.6 | 30.0 | 29.8 | 27.6 | |||||||||||||||||||||
Restructuring charges | — | — | — | — | — | |||||||||||||||||||||
Transaction costs | 0.1 | 0.1 | — | 0.8 | 0.1 | |||||||||||||||||||||
Asset impairments | 8.6 | — | — | — | — | |||||||||||||||||||||
Total costs and expenses | 84.1 | 75.7 | 75.2 | 74.3 | 65.7 | |||||||||||||||||||||
Operating income | $ | 1.6 | $ | 11.2 | $ | 9.6 | $ | 7.4 | $ | 11.8 | ||||||||||||||||
Interest expense | 8.4 | 9.1 | 9.0 | 10.7 | 10.7 | |||||||||||||||||||||
Loss on extinguishment of debt | — | 13.6 | — | — | — | |||||||||||||||||||||
Income (loss) before income taxes | (6.8 | ) | (11.5 | ) | 0.6 | (3.3 | ) | 1.1 | ||||||||||||||||||
Income tax expense | (0.4 | ) | (0.3 | ) | (0.4 | ) | (0.3 | ) | (0.4 | ) | ||||||||||||||||
Net income (loss) from continuing operations | (7.2 | ) | (11.8 | ) | 0.2 | (3.6 | ) | 0.7 | ||||||||||||||||||
Noncontrolling interest in net income (loss) | (2.9 | ) | (4.8 | ) | 0.1 | (2.5 | ) | 0.5 | ||||||||||||||||||
Net income (loss) attributed to common stockholders | $ | (4.3 | ) | $ | (7.0 | ) | $ | 0.1 | $ | (1.1 | ) | $ | 0.2 | |||||||||||||
Loss per common share - basic and diluted | $ | (0.12 | ) | $ | (0.19 | ) | $ | — | $ | (0.06 | ) | $ | — | |||||||||||||
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Condensed Consolidated Balance Sheets | ||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
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2015 |
2014 |
2014 |
2014 | 2014 | ||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Investment in real estate: | ||||||||||||||||||||||||||
Land | $ | 93.0 | $ | 89.7 | $ | 89.7 | $ | 89.7 | $ | 89.6 | ||||||||||||||||
Buildings and improvements | 820.8 | 812.6 | 796.6 | 791.7 | 787.0 | |||||||||||||||||||||
Equipment | 382.7 | 349.1 | 312.5 | 298.8 | 206.4 | |||||||||||||||||||||
Construction in progress | 121.0 | 127.0 | 120.9 | 59.5 | 99.4 | |||||||||||||||||||||
Subtotal | 1,417.5 | 1,378.4 | 1,319.7 | 1,239.7 | 1,182.4 | |||||||||||||||||||||
Accumulated depreciation | (350.1 | ) | (327.0 | ) | (303.5 | ) | (280.6 | ) | (257.6 | ) | ||||||||||||||||
Net investment in real estate | 1,067.4 | 1,051.4 | 1,016.2 | 959.1 | 924.8 | |||||||||||||||||||||
Cash and cash equivalents | 26.0 | 36.5 | 30.4 | 49.3 | 125.2 | |||||||||||||||||||||
Rent and other receivables | 53.9 | 60.9 | 59.1 | 61.5 | 42.4 | |||||||||||||||||||||
Goodwill | 276.2 | 276.2 | 276.2 | 276.2 | 276.2 | |||||||||||||||||||||
Intangible assets, net | 65.3 | 68.9 | 73.2 | 77.4 | 81.7 | |||||||||||||||||||||
Due from affiliates | 1.4 | 0.8 | 1.3 | 0.5 | 0.9 | |||||||||||||||||||||
Other assets | 86.4 | 91.8 | 81.6 | 82.1 | 76.9 | |||||||||||||||||||||
Total assets | $ | 1,576.6 | $ | 1,586.5 | $ | 1,538.0 | $ | 1,506.1 | $ | 1,528.1 | ||||||||||||||||
Liabilities and Equity | ||||||||||||||||||||||||||
Accounts payable and accrued expenses | $ | 67.1 | $ | 69.9 | $ | 100.2 | $ | 83.9 | $ | 88.8 | ||||||||||||||||
Deferred revenue | 65.5 | 65.7 | 66.1 | 66.7 | 64.8 | |||||||||||||||||||||
Due to affiliates | 9.1 | 7.3 | 7.4 | 7.4 | 10.8 | |||||||||||||||||||||
Capital lease obligations | 12.6 | 13.4 | 14.2 | 15.0 | 15.5 | |||||||||||||||||||||
Long-term debt | 679.8 | 659.8 | 555.0 | 525.0 | 525.0 | |||||||||||||||||||||
Other financing arrangements | 51.3 | 53.4 | 55.1 | 57.1 | 56.4 | |||||||||||||||||||||
Total liabilities | 885.4 | 869.5 | 798.0 | 755.1 | 761.3 | |||||||||||||||||||||
Shareholders' Equity: | ||||||||||||||||||||||||||
Preferred stock, |
— | — | — | — | — | |||||||||||||||||||||
Common stock, |
0.4 | 0.4 | 0.4 | 0.4 | 0.2 | |||||||||||||||||||||
Paid in capital | 518.9 | 516.5 | 513.7 | 511.1 | 342.9 | |||||||||||||||||||||
Accumulated deficit | (72.5 | ) | (55.9 | ) | (40.8 | ) | (32.7 | ) | (23.5 | ) | ||||||||||||||||
Other comprehensive income | (0.6 | ) | (0.3 | ) | — | — | — | |||||||||||||||||||
Total shareholders' equity | 446.2 | 460.7 | 473.3 | 478.8 | 319.6 | |||||||||||||||||||||
Noncontrolling interests | 245.0 | 256.3 | 266.7 | 272.2 | 447.2 | |||||||||||||||||||||
Total shareholders' equity | 691.2 | $ | 717.0 | $ | 740.0 | $ | 751.0 | $ | 766.8 | |||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,576.6 | $ | 1,586.5 | $ | 1,538.0 | $ | 1,506.1 | $ | 1,528.1 | ||||||||||||||||
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Condensed Consolidated Statement of Cash Flow | |||||||||||
(Dollars in millions) | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended |
Three Months Ended |
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Cash flows from operating activities: | |||||||||||
Net loss | $ | (7.2 | ) | $ | 0.7 | ||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 31.1 | 27.6 | |||||||||
Noncash interest expense | 0.7 | 0.9 | |||||||||
Stock-based compensation expense | 3.0 | 2.2 | |||||||||
Asset impairments | 8.6 | — | |||||||||
Change in operating assets and liabilities, net of effect of acquisitions: | |||||||||||
Rent receivables and other assets | 1.8 | (6.7 | ) | ||||||||
Accounts payable and accrued expenses | (2.9 | ) | 4.4 | ||||||||
Deferred revenues | (0.2 | ) | 8.9 | ||||||||
Due to affiliates | (1.6 | ) | (0.1 | ) | |||||||
Net cash provided by operating activities | 33.3 | 37.9 | |||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures - acquisitions of real estate | (17.3 | ) | — | ||||||||
Capital expenditures - other development | (31.9 | ) | (49.7 | ) | |||||||
Net cash used in investing activities | (49.2 | ) | (49.7 | ) | |||||||
Cash flows from financing activities: | |||||||||||
Dividends paid | (13.5 | ) | (10.4 | ) | |||||||
Borrowings from revolving credit agreement | 20.0 | — | |||||||||
Payments on capital leases and other financing arrangements | (1.1 | ) | (1.4 | ) | |||||||
Net cash (used in) provided by financing activities | 5.4 | (11.8 | ) | ||||||||
Net (decrease) increase in cash and cash equivalents | (10.5 | ) | (23.6 | ) | |||||||
Cash and cash equivalents at beginning of period | 36.5 | 148.8 | |||||||||
Cash and cash equivalents at end of period | $ | 26.0 | $ | 125.2 | |||||||
Three Months Ended |
Three Months Ended |
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Supplemental disclosures |
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Cash paid for interest | $ | 2.8 | $ | 1.6 | |||||||
Cash paid for income taxes | 1.1 | — | |||||||||
Capitalized interest | 1.3 | 0.5 | |||||||||
Acquisition of property in accounts payable and other liabilities | 21.5 | 52.2 | |||||||||
Dividends payable | 21.5 | 13.7 | |||||||||
Taxes on vesting of shares | 0.6 | — | |||||||||
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Net Operating Income and Reconciliation of Net Income (Loss) to Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||||||||
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Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||
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Change |
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2015 | 2014 | $ | % | 2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||||||||||||||||||||||||
Net Operating Income | ||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 85.7 | $ | 77.5 | $ | 8.2 | 11% | $ | 85.7 | $ | 86.9 | $ | 84.8 | $ | 81.7 | $ | 77.5 | |||||||||||||||||||||||||||
Property operating expenses | 32.3 | 27.7 | 4.6 | 17% | 32.3 | 32.0 | 33.0 | 31.8 | 27.7 | |||||||||||||||||||||||||||||||||||
Net Operating Income (NOI) | 53.4 | 49.8 | 3.6 | 7% | 53.4 | 54.9 | 51.8 | 49.9 | 49.8 | |||||||||||||||||||||||||||||||||||
Add Back: Lease exit costs | 0.7 | — | 0.7 | n/m | 0.7 | — | — | — | — | |||||||||||||||||||||||||||||||||||
Adjusted Net Operating Income (Adjusted NOI) | $ | 54.1 | $ | 49.8 | $ | 4.3 | 9% | $ | 54.1 | $ | 54.9 | $ | 51.8 | $ | 49.9 | $ | 49.8 | |||||||||||||||||||||||||||
Adjusted NOI as a % of Revenue | 63.1 | % | 64.3 | % | 63.1 | % | 63.2 | % | 61.1 | % | 61.1 | % | 64.3 | % | ||||||||||||||||||||||||||||||
Reconciliation of Net (Loss) Income to Adjusted EBITDA: | ||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (7.2 | ) | $ | 0.7 | $ | (7.9 | ) |
n/m |
$ | (7.2 | ) | $ | (11.8 | ) | $ | 0.2 | $ | (3.6 | ) | $ | 0.7 | ||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 8.4 | 10.7 | (2.3 | ) | (21)% | 8.4 | 9.1 | 9.0 | 10.7 | 10.7 | ||||||||||||||||||||||||||||||||||
Income tax expense | 0.4 | 0.4 | — | —% | 0.4 | 0.3 | 0.4 | 0.3 | 0.4 | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 31.1 | 27.6 | 3.5 | 13% | 31.1 | 30.6 | 30.0 | 29.8 | 27.6 | |||||||||||||||||||||||||||||||||||
Transaction costs | 0.1 | 0.1 | — | —% | 0.1 | 0.1 | — | 0.8 | 0.1 | |||||||||||||||||||||||||||||||||||
Stock-based compensation | 3.0 | 2.2 | 0.8 | 36% | 3.0 | 2.7 | 2.6 | 2.8 | 2.2 | |||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | — | — | — |
n/m |
— | 13.6 | — | — | — | |||||||||||||||||||||||||||||||||||
Lease exit costs | 0.7 | — | $ | 0.7 | n/m | 0.7 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Asset impairments | 8.6 | — | $ | 8.6 | n/m | 8.6 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 45.1 | $ | 41.7 | $ | 3.4 | 8% | $ | 45.1 | $ | 44.6 | $ | 42.2 | $ | 40.8 | $ | 41.7 | |||||||||||||||||||||||||||
Adjusted EBITDA as a % of Revenue | 52.6 | % | 53.8 | % | 52.6 | % | 51.3 | % | 49.8 | % | 49.9 | % | 53.8 | % | ||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Net Income (Loss) to FFO, Normalized FFO, and AFFO | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||
|
Change |
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
2015 | 2014 | $ | % | |||||||||||||||||||||||||||||||||||||||||
Reconciliation of Net (Loss) Income to FFO and Normalized FFO: | ||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (7.2 | ) | $ | 0.7 | $ | (7.9 | ) | n/m | $ | (7.2 | ) | $ | (11.8 | ) | $ | 0.2 | $ | (3.6 | ) | $ | 0.7 | ||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||
Real estate depreciation and amortization | 26.0 | 22.2 | 3.8 | 17% | 26.0 | 25.1 | 24.5 | 24.1 | 22.2 | |||||||||||||||||||||||||||||||||||
Amortization of customer relationship intangibles | 3.6 | 4.2 | (0.6 | ) | (14)% | 3.6 | 4.2 | 4.2 | 4.3 | 4.2 | ||||||||||||||||||||||||||||||||||
Real estate impairments | 8.6 | — | 8.6 | n/m | 8.6 | — | — | — | — | |||||||||||||||||||||||||||||||||||
Funds from Operations (FFO) | $ | 31.0 | $ | 27.1 | 3.9 | 14% | $ | 31.0 | $ | 17.5 | $ | 28.9 | $ | 24.8 | $ | 27.1 | ||||||||||||||||||||||||||||
Loss on extinguishment of debt | — | — | — | n/m | — | 13.6 | — | — | — | |||||||||||||||||||||||||||||||||||
Transaction costs | 0.1 | 0.1 | — | —% | 0.1 | 0.1 | — | 0.8 | 0.1 | |||||||||||||||||||||||||||||||||||
Lease exit costs | 0.8 | — | $ | 0.8 | n/m | 0.8 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Normalized Funds from Operations (Normalized FFO) | $ | 31.9 | $ | 27.2 | $ | 4.7 | 17% | $ | 31.9 | $ | 31.2 | $ | 28.9 | $ | 25.6 | $ | 27.2 | |||||||||||||||||||||||||||
Normalized FFO per diluted common share or common share equivalent | $ | 0.49 | $ | 0.42 | $ | 0.07 | 17% | $ | 0.49 | $ | 0.48 | $ | 0.44 | $ | 0.39 | $ | 0.42 | |||||||||||||||||||||||||||
Weighted Average diluted common share and common share equivalent outstanding | 65.5 | 65.0 | 0.5 | 1% | 65.5 | 65.3 | 65.3 | 65.3 | 65.0 | |||||||||||||||||||||||||||||||||||
Reconciliation of Normalized FFO to AFFO: | ||||||||||||||||||||||||||||||||||||||||||||
Normalized FFO | $ | 31.9 | $ | 27.2 | 4.7 | 17% | $ | 31.9 | $ | 31.2 | $ | 28.9 | $ | 25.6 | $ | 27.2 | ||||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of deferred financing costs | 0.7 | 0.9 | (0.2 | ) | (22)% | 0.7 | 0.7 | 0.9 | 0.9 | 0.9 | ||||||||||||||||||||||||||||||||||
Stock-based compensation | 3.0 | 2.2 | 0.8 | 36% | 3.0 | 2.7 | 2.6 | 2.8 | 2.2 | |||||||||||||||||||||||||||||||||||
Non-real estate depreciation and amortization | 1.5 | 1.2 | 0.3 | 25% | 1.5 | 1.4 | 1.2 | 1.4 | 1.2 | |||||||||||||||||||||||||||||||||||
Deferred revenue and straight line rent adjustments | (1.4 | ) | (3.0 | ) | 1.6 | (53)% | (1.4 | ) | (2.3 | ) | (1.5 | ) | (3.7 | ) | (3.0 | ) | ||||||||||||||||||||||||||||
Leasing commissions | (0.5 | ) | (0.6 | ) | 0.1 | (17)% | (0.5 | ) | (2.9 | ) | (0.9 | ) | (1.4 | ) | (0.6 | ) | ||||||||||||||||||||||||||||
Recurring capital expenditures | (0.2 | ) | (0.4 | ) | 0.2 | (50)% | (0.2 | ) | (1.0 | ) | (2.1 | ) | (0.3 | ) | (0.4 | ) | ||||||||||||||||||||||||||||
Adjusted Funds from Operations (AFFO) | $ | 35.0 | $ | 27.5 | $ | 7.5 | 27% | $ | 35.0 | $ | 29.8 | $ | 29.1 | $ | 25.3 | $ | 27.5 | |||||||||||||||||||||||||||
|
||||||||||||||
Market Capitalization Summary and Reconciliation of Net Debt | ||||||||||||||
(Unaudited) | ||||||||||||||
Market Capitalization |
||||||||||||||
Shares or |
Market Price |
Market Value |
||||||||||||
Common shares | 39,058,786 | $ | 31.12 | $ | 1,215.5 | |||||||||
Operating Partnership units | 26,601,835 | $ | 31.12 | 827.8 | ||||||||||
Net Debt | 666.4 | |||||||||||||
Total Enterprise Value (TEV) | $ | 2,709.7 | ||||||||||||
Net Debt as a % of TEV | 24.6 | % | ||||||||||||
Net Debt to LQA Adjusted EBITDA | 3.7x | |||||||||||||
Reconciliation of Net Debt |
|||||||||||||||||
(dollars in millions) |
|
|
|||||||||||||||
2015 | 2014 | ||||||||||||||||
Long-term debt | $ | 679.8 | $ | 659.8 | |||||||||||||
Capital lease obligations | 12.6 | 13.4 | |||||||||||||||
Less: | |||||||||||||||||
Cash and cash equivalents | (26.0 | ) | (36.5 | ) | |||||||||||||
Net Debt | $ | 666.4 | $ | 636.7 | |||||||||||||
|
|||||||||||||||||||||
Colocation Square Footage (CSF) and Utilization | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
As of |
As of |
As of |
|||||||||||||||||||
Market |
Colocation |
CSF |
Colocation |
CSF |
Colocation |
CSF |
|||||||||||||||
|
420,223 | 91% | 420,223 | 90% | 419,277 | 90% | |||||||||||||||
|
294,969 | 90% | 294,969 | 86% | 231,958 | 99% | |||||||||||||||
|
255,094 | 86% | 255,094 | 85% | 268,094 | 80% | |||||||||||||||
|
114,026 | 98% | 114,026 | 100% | 77,504 | 93% | |||||||||||||||
|
59,995 | 90% | 59,995 | 87% | 54,003 | 79% | |||||||||||||||
|
43,843 | 100% | 43,843 | 100% | 43,487 | 100% | |||||||||||||||
|
37,461 | 71% | — |
n/a |
— |
n/a |
|||||||||||||||
|
23,298 | 52% | 23,298 | 58% | 23,298 | 53% | |||||||||||||||
International | 13,200 | 80% | 13,200 | 80% | 13,200 | 78% | |||||||||||||||
Total Footprint |
1,262,109 | 89% | 1,224,648 | 88% | 1,130,821 | 89% | |||||||||||||||
(a) | CSF represents the NRSF at an operating facility that is currently leased or readily available for lease as colocation space, where customers locate their servers and other IT equipment. | |
(b) | Utilization is calculated by dividing CSF under signed leases for colocation space (whether or not the customer has occupied the space) by total CSF. | |
|
||||
2015 Guidance | ||||
(Unaudited) | ||||
Category |
2015 Guidance |
|||
Total Revenue |
|
|||
Base Revenue |
|
|||
Metered Power Reimbursements |
|
|||
Adjusted EBITDA |
|
|||
Normalized FFO per diluted common share or common share equivalent* |
|
|||
Capital Expenditures |
|
|||
Development** |
|
|||
Recurring |
|
* |
Assumes weighted average diluted common share or common share equivalents for 2015 of 66 million. |
||
** | Development capital is inclusive of capital used for the acquisition of land for future development. | ||
|
||||||||||||||||||||||||||||||||||||||||||||
Data Center Portfolio | ||||||||||||||||||||||||||||||||||||||||||||
As of |
||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
Operating Net Rentable Square Feet (NRSF)(a) |
Powered |
Available |
||||||||||||||||||||||||||||||||||||||||||
Facilities |
Metro |
Annualized |
Colocation |
CSF |
CSF |
Office & |
Office & |
Supporting |
Total(i) |
|||||||||||||||||||||||||||||||||||
|
|
$ | 56,452,442 | 112,133 | 96 | % | 96 | % | 10,563 | 98 | % | 36,756 | 159,452 | 3,000 | 28 | |||||||||||||||||||||||||||||
|
|
38,151,863 | 212,664 | 93 | % | 94 | % | 5,744 | 100 | % | 171,561 | 389,969 | 37,000 | 13 | ||||||||||||||||||||||||||||||
S. State Highway 121 Business |
|
34,874,104 | 108,687 | 96 | % | 96 | % | 11,374 | 97 | % | 59,345 | 179,406 | — | 18 | ||||||||||||||||||||||||||||||
|
|
27,115,401 | 170,627 | 84 | % | 86 | % | 25,435 | 84 | % | 69,464 | 265,526 | 272,000 | 18 | ||||||||||||||||||||||||||||||
Southwest Fwy., |
|
26,676,013 | 63,469 | 76 | % | 76 | % | 23,259 | 51 | % | 24,927 | 111,655 | — | 14 | ||||||||||||||||||||||||||||||
Kingsview Dr., |
|
19,865,984 | 65,303 | 76 | % | 87 | % | 44,886 | 72 | % | 52,950 | 163,139 | 65,000 | 14 | ||||||||||||||||||||||||||||||
South Ellis Street |
|
19,751,706 | 77,504 | 96 | % | 97 | % | 34,501 | 11 | % | 39,129 | 151,134 | 31,000 | 27 | ||||||||||||||||||||||||||||||
|
|
18,401,018 | 43,843 | 100 | % | 100 | % | 5,989 | 83 | % | 45,606 | 95,438 | 11,000 | 12 | ||||||||||||||||||||||||||||||
|
|
14,958,513 | 52,698 | 100 | % | 100 | % | 46,848 | 87 | % | 40,374 | 139,920 | — | 9 | ||||||||||||||||||||||||||||||
|
|
13,286,621 | 79,492 | 70 | % | 79 | % | 3,355 | 62 | % | 55,018 | 137,865 | 12,000 | 12 | ||||||||||||||||||||||||||||||
Metropolis Dr., |
|
11,144,269 | 43,772 | 88 | % | 91 | % | 708 | 100 | % | 22,867 | 67,347 | — | 5 | ||||||||||||||||||||||||||||||
Knightsbridge Dr., |
|
9,722,776 | 46,565 | 77 | % | 78 | % | 1,077 | 100 | % | 35,336 | 82,978 | — | 10 | ||||||||||||||||||||||||||||||
South Ellis Street |
|
6,005,806 | 36,522 | 100 | % | 100 | % | 5,540 | 36 | % | 20,784 | 62,846 | 4,000 | 6 | ||||||||||||||||||||||||||||||
Parkway Dr., |
|
5,983,589 | 34,072 | 100 | % | 100 | % | 26,458 | 98 | % | 17,193 | 77,723 | — | 4 | ||||||||||||||||||||||||||||||
|
|
5,851,932 | 16,223 | 87 | % | 87 | % | 21,476 | 100 | % | 7,517 | 45,216 | — | 2 | ||||||||||||||||||||||||||||||
|
|
5,408,662 | 8,390 | 100 | % | 100 | % | — | — | % | — | 8,390 | — | 1 | ||||||||||||||||||||||||||||||
|
|
4,698,021 | 10,000 | 99 | % | 99 | % | — | — | % | — | 10,000 | — | 1 | ||||||||||||||||||||||||||||||
|
|
2,266,276 | 13,516 | 70 | % | 70 | % | 4,115 | 100 | % | 12,230 | 29,861 | 29,000 | 3 | ||||||||||||||||||||||||||||||
|
|
2,247,795 | 4,245 | 100 | % | 100 | % | — | — | % | — | 4,245 | — | 1 | ||||||||||||||||||||||||||||||
Goldcoast Dr., |
|
1,480,977 | 2,728 | 100 | % | 100 | % | 5,280 | 100 | % | 16,481 | 24,489 | 14,000 | 1 | ||||||||||||||||||||||||||||||
|
|
863,855 | 3,020 | 51 | % | 51 | % | — | — | % | — | 3,020 | — | 1 | ||||||||||||||||||||||||||||||
|
|
835,008 | — | — | % | — | % | 8,564 | 100 | % | 5,304 | 13,868 | — | — | ||||||||||||||||||||||||||||||
|
|
494,852 | 6,193 | 39 | % | 39 | % | 6,950 | 100 | % | 2,166 | 15,309 | — | 1 | ||||||||||||||||||||||||||||||
|
|
425,827 | 6,350 | 24 | % | 24 | % | — | — | % | 6,478 | 12,828 | 4,000 | 1 | ||||||||||||||||||||||||||||||
|
|
404,465 | 3,432 | 32 | % | 32 | % | — | — | % | 5,125 | 8,557 | 11,000 | 1 | ||||||||||||||||||||||||||||||
Jurong East ( |
|
295,479 | 3,200 | 19 | % | 19 | % | — | — | % | — | 3,200 | — | 1 | ||||||||||||||||||||||||||||||
|
|
4,955 | 37,461 | 48 | % | 71 | % | 1,160 | 100 | % | 38,047 | 76,668 | 6,000 | 6 | ||||||||||||||||||||||||||||||
Total |
$ | 327,668,209 | 1,262,109 | 87 | % | 89 | % | 293,282 | 76 | % | 784,658 | 2,340,049 | 499,000 | 204 |
* | Indicates properties in which we hold a leasehold interest in the building shell and land. All data center infrastructure has been constructed by us and owned by us. | |
** | Indicates properties in which we hold a leasehold interest in the building shell, land, and all data center infrastructure. | |
*** |
The information provided for the |
|
**** |
For the quarter ended |
(a) |
Represents the total square feet of a building under lease or
available for lease based on engineers' drawings and estimates but
does not include space held for development or space used by
|
|
(b) |
Represents monthly contractual rent (defined as cash rent including
customer reimbursements for metered power) under existing customer
leases as of |
|
(c) | CSF represents the NRSF at an operating facility that is currently leased or readily available for lease as colocation space, where customers locate their servers and other IT equipment. | |
(d) |
Percent leased is determined based on CSF being billed to customers
under signed leases as of |
|
(e) | Utilization is calculated by dividing CSF under signed leases for colocation space (whether or not the customer has occupied the space) by total CSF. | |
(f) | Represents the NRSF at an operating facility that is currently leased or readily available for lease as space other than CSF, which is typically office and other space. | |
(g) |
Percent leased is determined based on Office & Other space being
billed to customers under signed leases as of |
|
(h) | Represents infrastructure support space, including mechanical, telecommunications and utility rooms, as well as building common areas. | |
(i) | Represents the NRSF at an operating facility that is currently leased or readily available for lease. This excludes existing vacant space held for development. | |
(j) | Represents space that is under roof that could be developed in the future for operating NRSF, rounded to the nearest 1,000. | |
(k) | UPS capacity (also referred to as critical load) represents the aggregate power available for lease and exclusive use by customers from the facility's installed universal power supplies (UPS) expressed in terms of megawatts. The capacity reported is for non-redundant megawatts, as we can develop flexible solutions to our customers at multiple resiliency levels. Does not sum to total due to rounding. | |
|
|||||||||||||||||||||||||||||||
NRSF Under Development | |||||||||||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||
NRSF Under Development(a) | Under Development Costs(b) | ||||||||||||||||||||||||||||||
Facilities |
Metropolitan |
Colocation |
Office & |
Supporting |
Powered |
Total |
UPS MW |
Actual |
Estimated |
Total |
|||||||||||||||||||||
W. Frankford Road ( |
|
56,000 | — | 18,000 | — | 74,000 | 3.0 | $ | 4 | $14-18 | $18-22 | ||||||||||||||||||||
Westover Hills Blvd. ( |
|
30,000 | 20,000 | 25,000 | 49,000 | 124,000 | 3.0 | 27 | 13-16 | 40-43 | |||||||||||||||||||||
Westway Park Blvd. (Houston West 3) |
|
53,000 | — | 32,000 | 213,000 | 298,000 | 6.0 | 28 | 23-28 | 51-56 | |||||||||||||||||||||
South |
|
36,000 | — | 4,000 | — | 40,000 | 6.0 | 8 | 9-12 | 17-20 | |||||||||||||||||||||
|
|
— | — | — | 150,000 | 150,000 | — | — | 11-13 | 11-13 | |||||||||||||||||||||
Metropolis Drive ( |
|
62,000 | 15,000 | 22,000 | 67,000 | 166,000 | 6.0 | 18 | 28-34 | 46-52 | |||||||||||||||||||||
Ridgetop Circle, |
|
37,000 | — | 15,000 | — | 52,000 | — | 1 | 11-14 | 12-15 | |||||||||||||||||||||
Total | 274,000 | 35,000 | 116,000 | 479,000 | 904,000 | 24.0 | $ | 86 | $109-135 | $195-221 |
(a) | Represents NRSF at a facility for which activities have commenced or are expected to commence in the next 2 quarters to prepare the space for its intended use. Estimates and timing are subject to change. | |
(b) | Represents management's estimate of the total costs required to complete the current NRSF under development. There may be an increase in costs if customers require greater power density. | |
(c) | Represents NRSF under construction that, upon completion, will be powered shell available for future development into operating NRSF. | |
(d) | UPS Capacity (also referred to as critical load) represents the aggregate power available for lease to and exclusive use by customers from the facility's installed universal power supplies (UPS) expressed in terms of megawatts. The capacity presented is for non-redundant megawatts, as we can develop flexible solutions to our customers at multiple resiliency levels. | |
(e) | Capex-to-date is the cash investment as of March 31, 2015. There may be accruals above this amount for work completed, for which cash has not yet been paid. | |
|
|||
Land Available for Future Development (Acres) |
|||
As of March 31, 2015 | |||
(Unaudited) | |||
As of | |||
Market | March 31, 2015 | ||
|
98 | ||
|
— | ||
|
20 | ||
|
10 | ||
|
22 | ||
|
32 | ||
|
13 | ||
|
— | ||
International | — | ||
Total Available | 195 | ||
|
||||||||||
Leasing Statistics - Lease Signings | ||||||||||
As of March 31, 2015 | ||||||||||
(Dollars in thousands) | ||||||||||
(Unaudited) | ||||||||||
Weighted | ||||||||||
Number |
Total CSF | Total kW | Total MRR Signed |
Average |
||||||
Period |
of Leases(a) |
Signed(b) |
Signed(c) |
($000)(d) |
Lease Term(e) |
|||||
Q1'15 | 326 | 60,000 | 9,759 | $1,383 | 83 | |||||
Prior 4Q Avg. | 292 | 59,000 | 10,526 | $1,146 | 76 | |||||
Q4'14 | 335 | 44,000 | 5,262 | $950 | 69 | |||||
Q3'14 | 287 | 33,000 | 3,410 | $694 | 79 | |||||
Q2'14 | 275 | 59,000 | 17,374 | $1,435 | 91 | |||||
Q1'14 | 270 | 100,000 | 16,058 | $1,506 | 64 |
(a) | Number of leases represents each agreement with a customer. A lease agreement could include multiple spaces, and a customer could have multiple leases. | |
(b) | CSF represents the NRSF at an operating facility that is leased as colocation space, where customers locate their servers and other IT equipment. | |
(c) | Represents maximum contracted kW that customers may draw during lease period. Additionally, we can develop flexible solutions for our customers at multiple resiliency levels, and the kW signed is unadjusted for this factor. | |
(d) | Monthly recurring rent is defined as the average monthly contractual rent during the term of the lease. It excludes estimates for pass-through power and installation charges. | |
(e) | Calculated on a CSF-weighted basis. | |
|
|||||||||||||||||||
New MRR Signed - Existing vs. New Customers | |||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
New MRR(a) Signed ($000) | |||||||||||||||||||
Q1'13 | Q2'13 | Q3'13 | Q4'13 | Q1'14 | Q2'14 | Q3'14 | Q4'14 | Q1'15 | |||||||||||
Existing Customers | $466 | $466 | $1,390 | $618 | $716 | $844 | $347 | $768 | $1,055 | ||||||||||
New Customers | $343 | $426 | $474 | $362 | $790 | $591 | $347 | $182 | $328 | ||||||||||
Total | $809 | $892 | $1,864 | $980 | $1,506 | $1,435 | $694 | $950 | $1,383 | ||||||||||
% from Existing Customers | 58% | 52% | 75% | 63% | 48% | 59% | 50% | 81% | 76% |
(a) | Monthly recurring rent is defined as the average monthly contractual rent during the term of the lease. It excludes estimates for pass-through power and installation charges. | |
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Customer Diversification(a) |
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As of March 31, 2015 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
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Weighted | ||||||||||||||||
Percentage of |
Average | ||||||||||||||||
Portfolio | Remaining | ||||||||||||||||
Number of | Annualized | Annualized | Lease Term in | ||||||||||||||
Principal Customer Industry |
Locations |
Rent(b) |
Rent(c) |
Months(d) |
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1 | Telecommunications (CBI)(e) | 8 | $ | 21,048,372 | 6.4% | 22.4 | |||||||||||
2 | Energy | 1 | 20,799,601 | 6.3% | 38.0 | ||||||||||||
3 | Telecommunication Services | 2 | 15,429,296 | 4.7% | 35.1 | ||||||||||||
4 | Information Technology | 3 | 15,093,621 | 4.6% | 39.2 | ||||||||||||
5 | Research and Consulting Services | 3 | 14,066,854 | 4.3% | 13.6 | ||||||||||||
6 | Energy | 5 | 13,279,273 | 4.1% | 5.0 | ||||||||||||
7 | Information Technology | 1 | 11,326,320 | 3.5% | 48.0 | ||||||||||||
8 | Information Technology | 2 | 7,722,300 | 2.4% | 27.4 | ||||||||||||
9 | Financials | 6 | 7,325,238 | 2.2% | 48.8 | ||||||||||||
10 | Financials | 1 | 6,600,225 | 2.0% | 62.0 | ||||||||||||
11 | Information Technology | 1 | 6,355,511 | 1.9% | 8.8 | ||||||||||||
12 | Information Technology | 1 | 6,005,806 | 1.8% | 116.0 | ||||||||||||
13 | Consumer Staples | 1 | 5,444,645 | 1.7% | 78.8 | ||||||||||||
14 | Energy | 3 | 5,437,816 | 1.7% | 15.9 | ||||||||||||
15 | Telecommunication Services | 5 | 5,291,594 | 1.6% | 49.0 | ||||||||||||
16 | Energy | 1 | 4,847,630 | 1.5% | 11.6 | ||||||||||||
17 | Information Technology | 1 | 4,642,007 | 1.4% | 71.0 | ||||||||||||
18 | Information Technology | 3 | 4,003,252 | 1.2% | 59.9 | ||||||||||||
19 | Energy | 1 | 3,643,239 | 1.1% | 14.3 | ||||||||||||
20 | Consumer Staples | 1 | 3,491,218 | 1.1% | 20.2 | ||||||||||||
$ | 181,853,818 | 55.5% | 35.5 | ||||||||||||||
(a) | Includes affiliates. | |
(b) | Represents monthly contractual rent (defined as cash rent including customer reimbursements for metered power) under existing customer leases as of March 31, 2015, multiplied by 12. For the month of March 2015, our total portfolio annualized rent was $327.7 million, and customer reimbursements were $38.4 million annualized, consisting of reimbursements by customers across all facilities with separately metered power. Customer reimbursements under leases with separately metered power vary from month-to-month based on factors such as our customers' utilization of power and the suppliers' pricing of power. From April 1, 2013 through March 31, 2015, customer reimbursements under leases with separately metered power constituted between 8.9% and 14.2% of annualized rent. After giving effect to abatements, free rent and other straight-line adjustments, our annualized effective rent for our total portfolio as of March 31, 2015 was $339.3 million. Our annualized effective rent was greater than our annualized rent as of March 31, 2015 because our positive straight-line and other adjustments and amortization of deferred revenue exceeded our negative straight-line adjustments due to factors such as the timing of contractual rent escalations and customer prepayments for services. | |
(c) | Represents the customer's total annualized rent divided by the total annualized rent in the portfolio as of March 31, 2015, which was approximately $327.7 million. | |
(d) | Weighted average based on customer's percentage of total annualized rent expiring and is as of March 31, 2015, assuming that customers exercise no renewal options and exercise all early termination rights that require payment of less than 50% of the remaining rents. Early termination rights that require payment of 50% or more of the remaining lease payments are not assumed to be exercised because such payments approximate the profitability margin of leasing that space to the customer, such that we do not consider early termination to be economically detrimental to us. | |
(e) |
Includes information for both |
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Lease Distribution | ||||||||||||||||||||
As of March 31, 2015 | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
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Total |
Percentage of |
|
|||||||||||||||||
Number of |
Percentage of |
Leased | Portfolio | Annualized |
Percentage of |
|||||||||||||||
NRSF Under Lease(a) |
Customers(b) |
All Customers |
NRSF(c) |
Leased NRSF |
Rent(d) |
Annualized Rent |
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0-999 | 494 | 74 | % | 102,692 | 5 | % | $ | 38,308,202 | 12 | % | ||||||||||
1,000-2,499 | 63 | 9 | % | 97,769 | 5 | % | 20,957,374 | 6 | % | |||||||||||
2,500-4,999 | 38 | 6 | % | 137,832 | 7 | % | 26,078,972 | 8 | % | |||||||||||
5,000-9,999 | 25 | 4 | % | 178,618 | 9 | % | 49,151,326 | 15 | % | |||||||||||
10,000+ | 46 | 7 | % | 1,465,288 | 74 | % | 193,172,335 | 59 | % | |||||||||||
Total | 666 | 100 | % | 1,982,199 | 100 | % | $ | 327,668,209 | 100 | % | ||||||||||
(a) | Represents all leases in our portfolio, including colocation, office and other leases. | |
(b) | Represents the number of customers occupying data center, office and other space as of March 31, 2015. This may vary from total customer count as some customers may be under contract, but have yet to occupy space. | |
(c) |
Represents the total square feet at a facility under lease and that
has commenced billing, excluding space held for development or space
used by |
|
(d) | Represents monthly contractual rent (defined as cash rent including customer reimbursements for metered power) under existing customer leases as of March 31, 2015, multiplied by 12. For the month of March 2015, customer reimbursements were $38.4 million annualized and consisted of reimbursements by customers across all facilities with separately metered power. Customer reimbursements under leases with separately metered power vary from month-to-month based on factors such as our customers' utilization of power and the suppliers' pricing of power. From April 1, 2013 through March 31, 2015, customer reimbursements under leases with separately metered power constituted between 8.9% and 14.2% of annualized rent. After giving effect to abatements, free rent and other straight-line adjustments, our annualized effective rent as of March 31, 2015 was $339.3 million. Our annualized effective rent was greater than our annualized rent as of March 31, 2015 because our positive straight-line and other adjustments and amortization of deferred revenue exceeded our negative straight-line adjustments due to factors such as the timing of contractual rent escalations and customer prepayments for services. | |
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Lease Expirations | ||||||||||||||||||||||||||||||
As of March 31, 2015 | ||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||
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Number of |
|
|
|
|
Percentage of |
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Leases |
Total Operating |
Percentage of |
Annualized |
Percentage of |
Annualized Rent |
Annualized Rent |
||||||||||||||||||||||||
Year(a) |
Expiring(b) |
NRSF Expiring |
Total NRSF |
Rent(c) |
Annualized Rent |
at Expiration(d) |
at Expiration |
|||||||||||||||||||||||
Available | 357,851 | 15 | % | |||||||||||||||||||||||||||
Month-to-Month | 254 | 45,355 | 2 | % | $ | 6,518,452 | 2 | % | $ | 6,580,707 | 2 | % | ||||||||||||||||||
2015 | 568 | 290,600 | 12 | % | 50,157,364 | 15 | % | 50,242,161 | 14 | % | ||||||||||||||||||||
2016 | 676 | 290,720 | 13 | % | 70,217,854 | 21 | % | 71,393,797 | 21 | % | ||||||||||||||||||||
2017 | 788 | 331,224 | 14 | % | 58,599,072 | 18 | % | 59,843,206 | 17 | % | ||||||||||||||||||||
2018 | 359 | 268,948 | 12 | % | 55,946,315 | 17 | % | 59,566,902 | 17 | % | ||||||||||||||||||||
2019 | 193 | 262,752 | 11 | % | 33,817,474 | 10 | % | 38,906,417 | 11 | % | ||||||||||||||||||||
2020 | 99 | 221,361 | 10 | % | 21,137,379 | 7 | % | 25,463,320 | 7 | % | ||||||||||||||||||||
2021 | 114 | 77,377 | 3 | % | 14,857,492 | 5 | % | 16,519,056 | 5 | % | ||||||||||||||||||||
2022 | 6 | 33,286 | 1 | % | 3,233,736 | 1 | % | 3,509,436 | 1 | % | ||||||||||||||||||||
2023 | 45 | 59,279 | 3 | % | 6,296,496 | 2 | % | 8,257,455 | 2 | % | ||||||||||||||||||||
2024 - Thereafter | 17 | 101,296 | 4 | % | 6,886,575 | 2 | % | 9,158,461 | 3 | % | ||||||||||||||||||||
Total | 3,119 | 2,340,049 | 100 | % | $ | 327,668,209 | 100 | % | $ | 349,440,918 | 100 | % |
(a) | Leases that were auto-renewed prior to March 31, 2015 are shown in the calendar year in which their current auto-renewed term expires. Unless otherwise stated in the footnotes, the information set forth in the table assumes that customers exercise no renewal options and exercise all early termination rights that require payment of less than 50% of the remaining rents. Early termination rights that require payment of 50% or more of the remaining lease payments are not assumed to be exercised. | |
(b) | Number of leases represents each agreement with a customer. A lease agreement could include multiple spaces and a customer could have multiple leases. | |
(c) | Represents monthly contractual rent (defined as cash rent including customer reimbursements for metered power) under existing customer leases as of March 31, 2015, multiplied by 12. For the month of March 2015, our total portfolio annualized rent was $327.7 million, customer reimbursements were $38.4 million annualized and consisted of reimbursements by customers across all facilities with separately metered power. Customer reimbursements under leases with separately metered power vary from month-to-month based on factors such as our customers' utilization of power and the suppliers' pricing of power. From April 1, 2013 through March 31, 2015, customer reimbursements under leases with separately metered power constituted between 8.9% and 14.2% of annualized rent. After giving effect to abatements, free rent and other straight-line adjustments, our annualized effective rent as of March 31, 2015 was $339.3 million. Our annualized effective rent was greater than our annualized rent as of March 31, 2015 because our positive straight-line and other adjustments and amortization of deferred revenue exceeded our negative straight-line adjustments due to factors such as the timing of contractual rent escalations and customer prepayments for services. | |
(d) | Represents the final monthly contractual rent under existing customer leases that had commenced as of March 31, 2015, multiplied by 12. |
Investor Relations:
investorrelations@cyrusone.com
Source:
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