CyrusOne
CyrusOne Inc. (Form: 8-K, Received: 08/03/2017 06:10:04)



 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________
FORM 8-K
_______________

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): August 2, 2017
_______________
CYRUSONE INC.
(Exact Name of Registrant as Specified in its Charter)
_______________
Maryland
 
001-35789
 
46-0691837
(State of incorporation)
 
(Commission File Number)
 
(IRS Employer Identification No.)
 
2101 Cedar Springs Road, Suite 900
Dallas, TX 75201
(Address of Principal Executive Office)
Registrant’s telephone number, including area code: (972) 350-0060
_______________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨








Item 2.02 Results of Operations and Financial Condition
On August 2, 2017, CyrusOne Inc. issued a press release announcing financial results and supplemental information for the second quarter ended June 30, 2017. A copy of the press release and supplemental information is furnished herewith as Exhibit 99.1.
Item 7.01 Regulation FD Disclosure
During a webcast scheduled to be held at 11:00 a.m. Eastern time on August 3, 2017, Gary J. Wojtaszek, the Company’s president and chief executive officer, and Diane M. Morefield, the Company’s chief financial officer, will discuss the Company’s second quarter 2017 results and outlook for 2017. The slide presentation for the webcast will be available on the investors page of the Company’s website. To access the webcast and corresponding slide presentation, go to the investors page at http://investor.cyrusone.com/index.cfm . An audio replay of the webcast will also be available on the investors page at http://investor.cyrusone.com/index.cfm .
The information in Items 2.02 and 7.01 of this Current Report on Form 8-K and the exhibits furnished therewith shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section, and shall not be or be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, regardless of any general incorporation language in such filing.
Item 9.01 — Financial Statements and Exhibits
(d) Exhibits.
 
 
 
Exhibit No.
 
Description
99.1
 
Press Release dated August 2, 2017












SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
Date: August 2, 2017
 
CYRUSONE INC.
 
 
 
 
 
By:
 
/s/ Robert M. Jackson
 
 
 
 
Robert M. Jackson


 
 
 
 
Executive Vice President, General Counsel
 
 
 
 
and Secretary

EXHIBIT INDEX
Exhibit No.
 
Description
99.1
 
Press Release dated August 2, 2017



A2Q17ERCOVER.JPG



TABLEOFCONTENTS2Q28.JPG




Exhibit 99.1
CyrusOne Reports Second Quarter 2017 Earnings
Signed $30 Million in Annualized GAAP Revenue
Year-over-Year Revenue Growth of 28%
Increasing Normalized FFO per share Guidance Range

DALLAS (August 2, 2017) - CyrusOne Inc. (NASDAQ: CONE), a premier global data center REIT, today announced second quarter 2017 earnings.

Highlights
Category
2Q’17
% Change vs.
2Q’16
Revenue
$166.9 million
28%
Net income / (loss)
$(0.8) million
n/m
Adjusted EBITDA
$90.8 million
30%
Normalized FFO
$67.9 million
28%
Net income / (loss) per share
$(0.01)
n/m
Normalized FFO per share
$0.77
15%

Leased 17 megawatts (MW) and 136,000 colocation square feet (CSF) in the second quarter totaling $30 million in annualized GAAP revenue

Signed 451 leases in the second quarter, the second highest quarterly total in the Company’s history

Backlog of $49 million in annualized GAAP revenue as of the end of the second quarter, representing more than $390 million in total contract value

Amended our senior unsecured credit agreement, increasing the total size of the facility by $450 million to $2.0 billion and gaining additional flexibility to pursue various initiatives, including joint ventures and international expansion

Raised $197.5 million in net equity proceeds through our at-the-market equity program

Closed the previously announced acquisition of 48 acres of land in Quincy, Washington, extending the Company’s presence to the Pacific Northwest and positioning it to offer what it believes to be one of the lowest cost data center solutions in the country
 
“We had another outstanding quarter with continued strong financial results and growth rates significantly higher than those of most other REITs. The leasing volume of $30 million annualized reflects the tremendous efforts of our Sales team and the strength of our customer relationships across all industry verticals,” said Gary Wojtaszek, president and chief executive officer of CyrusOne. “We believe this digital wave will continue for years to come as the secular demand drivers remain intact, and I am excited about the position we are in to capitalize on these opportunities and generate attractive returns for our shareholders.”

Second Quarter 2017 Financial Results
    
Net loss was $(0.8) million for the second quarter, compared to net income of $9.1 million in the same period in 2016. Normalized Funds From Operations (Normalized FFO) 1 was $67.9 million for the second quarter, compared to $53.1 million in the same period in 2016, an increase of 28%. Net loss per basic and diluted common share 2 was $(0.01) in the second quarter of 2017, compared to net income of $0.11 per basic and diluted common share in the same period in 2016. Normalized FFO per basic and diluted common share was $0.77 in the second quarter of 2017, an increase of 15% over second quarter 2016.

Revenue was $166.9 million for the second quarter, compared to $130.1 million for the same period in 2016, an increase of 28%. The increase in revenue was driven primarily by a 35% increase in leased CSF and additional interconnection services. Net operating income (NOI) 3 was $107.3 million for the second quarter, compared to $85.3 million in the same period in 2016, an increase of 26%. Adjusted EBITDA 4 was $90.8 million for the second quarter, compared to $69.7 million in the same period in 2016, an increase of 30%.


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Leasing Activity

CyrusOne leased approximately 17 MW of power and 136,000 CSF in the second quarter, representing $2.5 million in monthly recurring rent inclusive of the monthly impact of installation charges, or approximately $30 million in annualized GAAP revenue 5 excluding estimates for pass-through power. The weighted average lease term of the new leases based on square footage is 86 months (7.2 years), and the weighted average remaining lease term of CyrusOne’s portfolio is 57 months (taking into account the impact of the backlog), an increase of 23 months compared to December 31, 2015. Recurring rent churn 6 for the second quarter was 0.8%, compared to 2.7% for the same period in 2016.

Portfolio Utilization and Development

In the second quarter, the Company completed construction on approximately 99,000 CSF and 21 MW of power capacity in Northern Virginia, Dallas and Cincinnati, increasing total CSF across 40 data centers to approximately 2,575,000 CSF. This represents an increase of 570,000 CSF, or 28%, from June 30, 2016. CSF utilization 7 as of the end of the second quarter was 93% for stabilized properties 8 and 89% overall. The Company has development projects underway in Phoenix, Northern Virginia, Chicago, Dallas, San Antonio, Austin and the New York Metro area that are expected to add approximately 477,000 CSF and 73 MW of power capacity.

Balance Sheet and Liquidity

As of June 30, 2017, the Company had gross assets 9 totaling approximately $4.5 billion, an increase of approximately 49% over gross assets as of June 30, 2016. CyrusOne had $1,857.7 million of long-term debt 10 , cash and cash equivalents of $40.0 million, and $933.8 million available under its unsecured revolving credit facility as of June 30, 2017. Net debt 10 was $1,829.4 million as of June 30, 2017, representing approximately 26% of the Company's total enterprise value of $6.9 billion, or 5.0x Adjusted EBITDA for the last quarter annualized. Available liquidity 11 was $973.8 million as of June 30, 2017.

In June 2017, CyrusOne’s operating partnership entered into an amendment to its senior unsecured credit agreement that increased the total size of the facility by $450 million to a total of $2.0 billion and provided additional flexibility to pursue various initiatives, including joint venture and international expansion. The amendment increased the size of the term loan maturing in January 2022 from $300 million to $650 million and expanded the revolving credit facility by $100 million to $1.1 billion. Proceeds from the $350 million term loan increase were used to pay down borrowings under the revolving credit facility.

Additionally, during the second quarter, the Company sold approximately 3.6 million shares of its common stock through its at-the-market equity program at an average price of $56.03, raising $197.5 million in net equity proceeds. The Company has approximately $93 million in remaining capacity under the original program authorization.

Dividend

On May 3, 2017, the Company announced a dividend of $0.42 per share of common stock for the second quarter of 2017. The dividend was paid on July 14, 2017, to stockholders of record at the close of business on June 30, 2017.

Additionally, today the Company is announcing a dividend of $0.42 per share of common stock for the third quarter of 2017. The dividend will be paid on October 13, 2017, to stockholders of record at the close of business on September 29, 2017.

Land Acquisition in Allen, TX

Subsequent to the end of the second quarter of 2017, CyrusOne purchased 66 acres of land in Allen, Texas, to support growth in the Dallas market. The Company also has an option to acquire an additional 24 acres of adjacent land.

Guidance

CyrusOne is updating guidance for full year 2017, increasing the ranges for Normalized FFO per diluted common share and Capital Expenditures. The annual guidance provided below 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 CyrusOne operates.

CyrusOne does not provide reconciliations for the non-GAAP financial measures included in the annual guidance provided below due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including net income (loss) and adjustments that could be made for transaction and acquisition integration costs, legal claim costs, lease exit costs, asset impairments and loss on disposals and other charges in its reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.

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Category
Previous
2017
   Guidance (1)
Revised
2017
       Guidance (1)(2)
Total Revenue
$666 - 681 million
$666 - 681 million
   Base Revenue
$591 - 601 million
$591 - 601 million
   Metered Power Reimbursements
$75 - 80 million
$75 - 80 million
Adjusted EBITDA
$364 - 374 million
$364 - 374 million
Normalized FFO per diluted common share
$2.95 - 3.05
$3.00 - 3.10
Capital Expenditures
$600 - 650 million
$700 - 750 million
   Development
$595 - 640 million
$695 - 740 million
   Recurring
$5 - 10 million
$5 - 10 million
 
 
 
(1) Full year 2017 guidance includes the impact of the Sentinel data center acquisition from 3/1-12/31
(2) Includes impact of approximately 3.6 million shares issued in 2Q’17, with approximately 91.3 million
shares outstanding as of June 30, 2017.
 
Upcoming Conferences and Events

Cowen and Company 3 rd Annual Communications Infrastructure Summit on August 7-8 in Boulder, Colorado

Conference Call Details

CyrusOne will host a conference call on August 3, 2017, at 11:00 AM Eastern Time (10:00 AM Central Time) to discuss its results for the second quarter of 2017. A live webcast of the conference call and the presentation to be made during the call will be available under the “Company” tab in the “Investors / Events and Presentations” section of the Company's website at http://investor.cyrusone.com/events.cfm . The U.S. conference call dial-in number is 1-844-492-3731, and the international dial-in number is 1-412-542-4121. A replay will be available one hour after the conclusion of the earnings call on August 3, 2017, through August 17, 2017. The U.S. toll-free replay dial-in number is 1-877-344-7529 and the international replay dial-in number is 1-412-317-0088. The replay access code is 10109684.

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. Readers are cautioned these forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause our actual results to differ materially and adversely from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this release and those discussed in other documents we file with the Securities and Exchange Commission (SEC). More information on potential risks and uncertainties is available in our recent filings with the SEC, including CyrusOne's Form 10-K report, Form 10-Q reports, and Form 8-K reports. Actual results may differ materially and adversely from those expressed in any forward-looking statements. We undertake no obligation to revise or update any forward-looking statements for any reason.

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, and Adjusted NOI 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,

5



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, and Adjusted EBITDA should be considered only as supplements to net income as measures of our performance. FFO, Normalized FFO, NOI, Adjusted NOI, 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 pay dividends. These measures also should not be used as substitutes for cash flow from operating activities computed in accordance with U.S. GAAP.
1 Normalized Funds From Operations (Normalized FFO) is defined as Funds From Operations (FFO) plus amortization of customer relationship intangibles, transaction and acquisition integration costs, legal claim costs and lease exit costs, and other special items including loss on extinguishment of debt, severance and management transition costs, and new accounting standards and systems implementation costs, as appropriate. FFO is net (loss) income computed in accordance with U.S. GAAP before real estate depreciation and amortization and Asset impairments and loss on disposal. Because the value of the customer relationship intangibles is inextricably connected to the real estate acquired, CyrusOne believes the amortization of such intangibles and impairments of such intangibles is analogous to real estate depreciation and impairments; therefore, the Company adds the customer relationship intangible amortization and impairments back for similar treatment with real estate depreciation and impairments. The Company believes its Normalized FFO calculation provides a comparable measure to that used by others in the industry. However, other REITs may not calculate Normalized FFO in the same manner. Accordingly, the Company’s Normalized FFO may not be comparable to others.
2 Net loss per common share is defined as net loss divided by the weighted average common shares outstanding for the period, which were 88,097,529 for the second quarter of 2017.
3 Net 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. CyrusOne has not historically incurred any tenant improvement costs. Our sales and marketing costs consist of salaries and benefits for our internal sales staff, travel and entertainment, office supplies, marketing and advertising costs. General and administrative costs include salaries and benefits of our senior management and support functions, legal and consulting costs, and other administrative costs. Marketing and advertising costs are not property-specific, rather these costs support our entire portfolio. As a result, we have excluded these marketing and advertising costs from our NOI calculation, consistent with the treatment of general and administrative costs, which also support our entire portfolio. From time to time, there may be non-recurring costs in property operating expenses, and as a result the Company may present Adjusted Net Operating Income (Adjusted NOI) to exclude the impacts of those costs.
4 Adjusted EBITDA is defined as net income (loss) as defined by U.S. GAAP plus interest expense, income tax (benefit) expense, depreciation and amortization, stock-based compensation, transaction and integration costs, severance and management transition costs, asset impairments and (gain) loss on disposals, lease exit costs, legal claim costs 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.

5 Annualized 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.
6 Recurring 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.

7 Utilization is calculated by dividing CSF under signed leases for available space (whether or not the contract has commenced billing) by total CSF. CSF Utilized differs from CSF Leased presented in the Data Center Portfolio table because the utilization rate includes CSF for signed leases that have not commenced billing.
8 Stabilized properties include data halls that have been in service for at least 24 months or are at least 85% utilized.
9 Gross asset value is defined as total assets plus accumulated depreciation.
10 Long-term debt and net debt exclude adjustments for deferred financing costs. Net 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 and cash equivalents.

11 Liquidity is calculated as cash, cash equivalents, and temporary cash investments on hand, plus the undrawn capacity on CyrusOne's revolving credit facility.






6



About CyrusOne

CyrusOne (NASDAQ: CONE) is a high-growth real estate investment trust (REIT) specializing in highly reliable enterprise-class, carrier-neutral data center properties. The Company provides mission-critical data center facilities that protect and ensure the continued operation of IT infrastructure for nearly 1,000 customers, including 190 Fortune 1000 companies.

CyrusOne's data center offerings provide the flexibility, reliability, and security that enterprise and cloud customers require and are delivered through a tailored, customer service-focused platform designed to foster long-term relationships. CyrusOne is committed to full transparency in communication, management, and service delivery throughout its 40 data centers worldwide.





# # #

CYRUSONEWATERMARKA11.JPG


Investor Relations:
Michael Schafer
Vice President, Capital Markets & Investor Relations
972-350-0060
investorrelations@cyrusone.com






























7



Company Profile

CyrusOne (NASDAQ: CONE) specializes in highly reliable enterprise-class, carrier-neutral data center properties. The Company provides mission-critical data center facilities that protect and ensure the continued operation of IT infrastructure for nearly 1,000 customers, including 190 Fortune 1000 companies. CyrusOne's data center offerings provide the flexibility, reliability, and security that enterprise customers require and are delivered through a tailored, customer service-focused platform designed to foster long-term relationships. CyrusOne is committed to full transparency in communication, management, and service delivery throughout its 40 data centers worldwide.

Best-in-Class Sales Force
Flexible Solutions that Scale as Customers Grow
Massively Modular® Engineering with Data Hall Builds in 10-14 Weeks
Focus on Operational Excellence and Superior Customer Service
Proven Leading-Edge Technology Delivering Power Densities up to 900 Watts per Square Foot
National IX Replicates Enterprise Data Center Architecture

Corporate Headquarters
Senior Management
2101 Cedar Springs Road, Ste. 900
Gary Wojtaszek, President and CEO
Robert Jackson, EVP General Counsel & Secretary
Dallas, Texas 75201
Diane Morefield, EVP & Chief Financial Officer
John Hatem, EVP Design, Construction & Operations
Phone: (972) 350-0060
Kevin Timmons, EVP & Chief Technology Officer
Blake Hankins, Chief Information Officer
Website: www.cyrusone.com
Tesh Durvasula, EVP & Chief Commercial Officer
John Gould, EVP Global Sales
 
Jonathan Schildkraut, EVP & Chief Strategy Officer
Brent Behrman, EVP Strategic Sales
 
Kellie Teal-Guess, EVP & Chief People Officer
Amitabh Rai, SVP & Chief Accounting Officer


Analyst Coverage

Firm
Analyst
Phone Number
Bank of America Merrill Lynch
Michael J. Funk
(646) 855-5664
Barclays
Amir Rozwadowski
(212) 526-4043
Citi
Mike Rollins
(212) 816-1116
Cowen and Company
Colby Synesael
(646) 562-1355
Credit Suisse
Sami Badri
(212) 538-1727
Deutsche Bank
Vin Chao
(212) 250-6799
Gabelli & Company
Sergey Dluzhevskiy
(914) 921-8355
Guggenheim Securities, LLC
Robert Gutman
(212) 518-9148
Jefferies
Jonathan Petersen
(212) 284-1705
J.P. Morgan
Richard Choe
(212) 622-6708
KeyBanc Capital Markets
Jordan Sadler
(917) 368-2280
Morgan Stanley
Simon Flannery
(212) 761-6432
Macquarie Capital (USA) Inc.
Andrew DeGasperi
(212) 231-0649
MUFG Securities
Stephen Bersey
(212) 405-7032
RBC Capital Markets
Jonathan Atkin
(415) 633-8589
Raymond James
Frank G. Louthan IV
(404) 442-5867
Stifel
Matthew S. Heinz, CFA
(443) 224-1382
SunTrust Robinson Humphrey
Greg Miller
(212) 303-4169
UBS
John C. Hodulik, CFA
(212) 713-4226
Wells Fargo
Eric Luebchow
(312) 630-2386


8



CyrusOne Inc.
Condensed Consolidated Statements of Operations
(Dollars in millions, except per share amounts)
(Unaudited)
 

 
Three Months
 
 
Six Months
 
 
 
Ended June 30,
Change
Ended June 30,
Change
 
2017
2016
$
%
2017
2016
$
%
Revenue:
 
 
 
 
 
 
 
 
       Base revenue and other
$
151.1

$
118.2

$
32.9

28
 %
$
285.3

$
224.7

$
60.6

27
 %
       Metered power reimbursements
15.8

11.9

3.9

33
 %
30.9

23.2

7.7

33
 %
Revenue
$
166.9

$
130.1

$
36.8

28
 %
316.2

247.9

68.3

28
 %
Costs and expenses:
 
 
 
 
 
 
 
 
Property operating expenses
59.6

44.8

14.8

33
 %
111.9

85.1

26.8

31
 %
Sales and marketing
4.3

4.2

0.1

2
 %
9.2

8.2

1.0

12
 %
General and administrative
17.3

14.9

2.4

16
 %
33.1

28.9

4.2

15
 %
Depreciation and amortization
63.7

44.7

19.0

43
 %
119.4

84.0

35.4

42
 %
Transaction and acquisition integration costs
1.7

0.4

1.3

n/m

2.3

2.7

(0.4
)
(15
)%
Asset impairments and loss on disposal
3.6


3.6

n/m

3.8


3.8

n/m

Total costs and expenses
150.2

109.0

41.2

38
 %
279.7

208.9

70.8

34
 %
Operating income
16.7

21.1

(4.4
)
(21
)%
36.5

39.0

(2.5
)
(6
)%
Interest expense
16.5

11.5

5.0

43
 %
30.1

23.6

6.5

28
 %
Loss on extinguishment of debt
0.3


0.3

n/m

36.5


36.5

n/m

Net (loss) income before income taxes
(0.1
)
9.6

(9.7
)
n/m

(30.1
)
15.4

(45.5
)
n/m

Income tax expense
(0.7
)
(0.5
)
(0.2
)
40
 %
(1.1
)
(0.7
)
(0.4
)
57
 %
Net (loss) income
$
(0.8
)
$
9.1

$
(9.9
)
n/m

$
(31.2
)
$
14.7

$
(45.9
)
n/m

(Loss) income per share - basic and diluted
$
(0.01
)
$
0.11

$
(0.12
)
n/m

$
(0.37
)
$
0.19

$
(0.56
)
n/m


















9



CyrusOne Inc.
Condensed Consolidated Balance Sheets
(Dollars in millions)
(Unaudited)
 

 
June 30,
December 31,
Change
 
2017
2016
$
%
Assets
 
 
 
 
Investment in real estate:
 
 
 
 
Land
$
160.0

$
142.7

$
17.3

12
 %
Buildings and improvements
1,291.7

1,008.9

282.8

28
 %
Equipment
1,525.3

1,042.9

482.4

46
 %
Construction in progress
555.8

407.1

148.7

37
 %
Subtotal
3,532.8

2,601.6

931.2

36
 %
Accumulated depreciation
(679.6
)
(578.5
)
(101.1
)
17
 %
Net investment in real estate
2,853.2

2,023.1

830.1

41
 %
Cash and cash equivalents
40.0

14.6

25.4

n/m

Rent and other receivables, net
93.4

83.3

10.1

12
 %
Restricted cash
0.8


0.8

n/m

Goodwill
455.1

455.1


 %
Intangible assets, net
216.3

150.2

66.1

44
 %
Other assets
157.8

126.1

31.7

25
 %
Total assets
$
3,816.6

$
2,852.4

$
964.2

34
 %
Liabilities and Equity
 
 


Accounts payable and accrued expenses
$
276.0

$
227.1

$
48.9

22
 %
Deferred revenue
96.5

76.7

19.8

26
 %
Capital lease obligations
11.7

10.8

0.9

8
 %
Long-term debt, net
1,832.5

1,240.1

592.4

48
 %
Lease financing arrangements
134.0

135.7

(1.7
)
(1
)%
Total liabilities
2,350.7

1,690.4

660.3

39
 %
Equity:

 


Preferred stock, $.01 par value, 100,000,000 authorized; no shares issued or outstanding



 %
Common stock, $.01 par value, 500,000,000 shares authorized and 91,291,228 and 83,536,250 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively
0.9

0.8

0.1

13
 %
Additional paid in capital
1,821.9

1,412.3

409.6

29
 %
Accumulated deficit
(355.7
)
(249.8
)
(105.9
)
42
 %
Accumulated other comprehensive loss
(1.2
)
(1.3
)
0.1

 %
Total stockholders’ equity
1,465.9

1,162.0

303.9

26
 %
Total liabilities and equity
$
3,816.6

$
2,852.4

$
964.2

34
 %














10



CyrusOne Inc.
Condensed Consolidated Statements of Operations
(Dollars in millions, except per share amounts)
(Unaudited)

 
For the three months ended:
June 30,
March 31,
December 31,
September 30,
June 30,
 
2017
2017
2016
2016
2016
Revenue:
 
 
 
 
 
Base revenue and other
$
151.1

$
134.2

$
123.2

$
128.8

$
118.2

Metered power reimbursements
15.8

15.1

14.2

15.0

11.9

Revenue
166.9

149.3

137.4

143.8

130.1

Costs and expenses:
 
 
 
 
 
Property operating expenses
59.6

52.3

47.8

54.6

44.8

Sales and marketing
4.3

4.9

4.0

4.7

4.2

General and administrative
17.3

15.8

17.9

13.9

14.9

Depreciation and amortization
63.7

55.7

49.3

50.6

44.7

Transaction and acquisition integration costs
1.7

0.6

0.4

1.2

0.4

        Asset impairments and loss on disposal
3.6

0.2

5.3



Total costs and expenses
150.2

129.5

124.7

125.0

109.0

Operating income
16.7

19.8

12.7

18.8

21.1

Interest expense
16.5

13.6

11.4

13.8

11.5

Loss on extinguishment of debt
0.3

36.2




Net (loss) income before income taxes
(0.1
)
(30.0
)
1.3

5.0

9.6

Income tax expense
(0.7
)
(0.4
)
(0.5
)
(0.6
)
(0.5
)
Net (loss) income
$
(0.8
)
$
(30.4
)
$
0.8

$
4.4

$
9.1

(Loss) income per share - basic and diluted
$
(0.01
)
$
(0.36
)
$
0.01

$
0.05

$
0.11




















11



CyrusOne Inc.
Condensed Consolidated Balance Sheets
(Dollars in millions)
(Unaudited)  

 
June 30,
March 31,
December 31,
September 30,
June 30,
 
2017
2017
2016
2016
2016
Assets
 
 
 
 
 
Investment in real estate:
 
 
 
 
 
Land
$
160.0

$
156.9

$
142.7

$
143.1

$
122.9

Buildings and improvements
1,291.7

1,270.9

1,008.9

1,009.3

995.2

Equipment
1,525.3

1,438.0

1,042.9

976.9

917.8

Construction in progress
555.8

371.7

407.1

304.0

178.9

Subtotal
3,532.8

3,237.5

2,601.6

2,433.3

2,214.8

Accumulated depreciation
(679.6
)
(625.9
)
(578.5
)
(546.4
)
(503.2
)
Net investment in real estate
2,853.2

2,611.6

2,023.1

1,886.9

1,711.6

Cash and cash equivalents
40.0

20.4

14.6

11.0

13.2

Rent and other receivables, net
93.4

89.4

83.3

73.0

66.4

Restricted cash
0.8

0.6



0.3

Goodwill
455.1

455.1

455.1

455.1

453.4

Intangible assets, net
216.3

223.1

150.2

155.8

160.6

Other assets
157.8

143.6

126.1

114.5

105.8

Total assets
$
3,816.6

$
3,543.8

$
2,852.4

$
2,696.3

$
2,511.3

Liabilities and Equity
 
 
 
 
 
Accounts payable and accrued expenses
$
276.0

$
268.2

$
227.1

$
214.6

$
163.7

Deferred revenue
96.5

93.3

76.7

72.5

71.7

Capital lease obligations
11.7

12.4

10.8

11.9

10.9

Long-term debt, net
1,832.5

1,731.8

1,240.1

1,065.7

1,096.2

Lease financing arrangements
134.0

134.5

135.7

141.9

144.3

Total liabilities
2,350.7

2,240.2

1,690.4

1,506.6

1,486.8

Equity:
 
 
 
 
 
Preferred stock, $.01 par value, 100,000,000 authorized; no shares issued or outstanding





Common stock, $.01 par value, 500,000,000 shares authorized and 91,291,228 and 83,536,250 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively
0.9

0.9

0.8

0.8

0.8

Additional paid in capital
1,821.9

1,620.5

1,412.3

1,408.9

1,215.7

Accumulated deficit
(355.7
)
(316.5
)
(249.8
)
(218.8
)
(191.5
)
Accumulated other comprehensive loss
(1.2
)
(1.3
)
(1.3
)
(1.2
)
(0.5
)
Total stockholders' equity
1,465.9

1,303.6

1,162.0

1,189.7

1,024.5

Total liabilities and equity
$
3,816.6

$
3,543.8

$
2,852.4

$
2,696.3

$
2,511.3









12



CyrusOne Inc.
Condensed Consolidated Statements of Cash Flow
(Dollars in millions)
(Unaudited)  
 
Six Months Ended June 30, 2017
Six Months Ended June 30, 2016
Three Months Ended June 30, 2017
Three Months Ended June 30, 2016
Cash flows from operating activities:
 
 
 
 
Net (loss) income
$
(31.2
)
$
14.7

$
(0.8
)
$
9.1

Adjustments to reconcile net (loss) income to net cash provided by operating activities:
 
 
 
 
Depreciation and amortization
119.4

84.0

63.7

44.7

Non-cash interest expense and change in interest accrual
10.7

1.5

11.7

0.6

Stock-based compensation expense
7.7

6.2

4.0

3.2

Provision for bad debt
0.3

0.7

0.3

0.6

Loss on extinguishment of debt
36.5


0.3


Asset impairments and loss on disposal
3.8


3.6


Change in operating assets and liabilities:
 
 
 
 
Rent receivables and other assets
(41.3
)
(8.9
)
(21.3
)
(15.1
)
Accounts payable and accrued expenses
(3.3
)
1.7

1.6

1.7

Deferred revenues
18.9

(7.0
)
3.2

(4.7
)
Net cash provided by operating activities
121.5

92.9

66.3

40.1

Cash flows from investing activities:
 
 
 
 
Capital expenditures – asset acquisitions, net of cash acquired
(492.3
)
(131.1
)


Capital expenditures – other development
(485.0
)
(247.1
)
(302.5
)
(168.6
)
Changes in restricted cash
(0.8
)
1.2

(0.2
)
0.4

Net cash used in investing activities
(978.1
)
(377.0
)
(302.7
)
(168.2
)
Cash flows from financing activities:
 
 

 
Issuance of common stock
408.6

256.5

197.6

0.5

Stock issuance costs

(0.5
)

(0.5
)
Dividends paid
(69.1
)
(52.9
)
(36.7
)
(30.1
)
Borrowings from credit facility
1,010.0

415.0

570.0

95.0

Payments on credit facility
(737.3
)
(315.0
)
(467.3
)
(10.0
)
Payments on senior notes
(474.8
)



Proceeds from issuance of debt
800.0




Payments on capital leases and lease financing arrangements
(4.8
)
(4.4
)
(2.5
)
(1.3
)
Debt issuance costs
(13.6
)
(2.1
)
(4.8
)

Payment of debt extinguishment costs
(30.4
)

(0.1
)

Tax payment upon exercise of equity awards
(6.6
)
(13.6
)
(0.2
)

Net cash provided by financing activities
882.0

283.0

256.0

53.6

Net increase (decrease) in cash and cash equivalents
25.4

(1.1
)
19.6

(74.5
)
Cash and cash equivalents at beginning of period
14.6

14.3

20.4

87.7

Cash and cash equivalents at end of period
$
40.0

$
13.2

$
40.0

$
13.2

 
 
 

 
Supplemental disclosures
 
 

 
Cash paid for interest
$
27.5

$
27.2

$
9.2

$
21.0

Cash paid for income taxes
1.6

1.2

1.6

1.1

Capitalized interest
8.1

5.0

4.5

2.9

Non-cash investing and financing activities
 
 
 
 
Acquisition and development of properties in accounts payable and other liabilities
163.4

77.4

163.4

77.4

Dividends payable
39.4

31.8

39.4

31.8

Debt issuance cost payable
0.1


0.1



13



CyrusOne Inc.
Net Operating Income and Reconciliation of Net (Loss) Income to Adjusted EBITDA
(Dollars in millions)
(Unaudited)
 
 
Six Months Ended
 
 
Three Months Ended
 
June 30,
Change
June 30,
March 31,
December 31,
September 30,
June 30,
 
2017
2016
$
%
2017
2017
2016
2016
2016
Net Operating Income
 
 
 
 
 
 
 
 
 
Revenue
$
316.2

$
247.9

$
68.3

28%
$
166.9

$
149.3

$
137.4

$
143.8

$
130.1

Property operating expenses
111.9

85.1

26.8

31%
59.6

52.3

47.8

54.6

44.8

Net Operating Income (NOI)
$
204.3

$
162.8

$
41.5

25%
$
107.3

$
97.0

$
89.6

$
89.2

$
85.3

NOI as a % of Revenue
64.6
%
65.7
%
 
 
64.3
%
65.0
%
65.2
%
62.0
%
65.6
%
Reconciliation of Net (Loss) Income to Adjusted EBITDA:
 
 
 
 
 
 
 
 
 
Net (loss) income
$
(31.2
)
$
14.7

$
(45.9
)
n/m
$
(0.8
)
$
(30.4
)
$
0.8

$
4.4

$
9.1

Interest expense
30.1

23.6

6.5

28%
16.5

13.6

11.4

13.8

11.5

Income tax expense
1.1

0.7

0.4

57%
0.7

0.4

0.5

0.6

0.5

Depreciation and amortization
119.4

84.0

35.4

42%
63.7

55.7

49.3

50.6

44.7

Transaction and acquisition integration costs
2.3

2.7

(0.4
)
(15)%
1.7

0.6

0.4

1.2

0.4

Legal claim costs
0.8

0.5

0.3

60%
0.6

0.2

0.4

0.2

0.3

Stock-based compensation
7.7

6.2

1.5

24%
4.0

3.7

3.0

2.3

3.2

Severance and management transition costs
0.5


0.5

n/m

0.5

1.9



Loss on extinguishment of debt
36.5


36.5

n/m
0.3

36.2




New accounting standards and system implementation costs
0.5


0.5

n/m
0.5





Asset impairments and loss on disposals
3.8


3.8

n/m
3.6

0.2

5.3



Adjusted EBITDA
$
171.5

$
132.4

$
39.1

30%
$
90.8

$
80.7

$
73.0

$
73.1

$
69.7

Adjusted EBITDA as a % of Revenue
54.2
%
53.4
%
 
 
54.4
%
54.1
%
53.1
%
50.8
%
53.6
%


CyrusOne Inc.
Reconciliation of Revenue to Net Operating Income to Net (Loss) Income
(Dollars in millions)
(Unaudited)
 
Three Months Ended
 
 
Six Months Ended
 
 
 
June 30,
Change
June 30,
Change
2017
2016
$
%
2017
2016
$
%
Revenue
$
166.9

$
130.1

$
36.8

28
%
$
316.2

$
247.9

$
68.3

28
 %
Property operating expenses
59.6

44.8

14.8

33
%
111.9

85.1

26.8

31
 %
Net Operating Income
$
107.3

$
85.3

$
22.0

26
%
$
204.3

$
162.8

$
41.5

25
 %
Sales and marketing
4.3

4.2

0.1

2
%
9.2

8.2

1.0

12
 %
General and administrative
17.3

14.9

2.4

16
%
33.1

28.9

4.2

15
 %
Depreciation and amortization
63.7

44.7

19.0

43
%
119.4

84.0

35.4

42
 %
Transaction and acquisition integration costs
1.7

0.4

1.3

n/m

2.3

2.7

(0.4
)
(15
)%
Asset impairments and loss on disposal
3.6


3.6

n/m

3.8


3.8

n/m

Interest expense
16.5

11.5

5.0

43
%
30.1

23.6

6.5

28
 %
Loss on extinguishment of debt
0.3


0.3

n/m

36.5


36.5

n/m

Income tax expense
0.7

0.5

0.2

40
%
1.1

0.7

0.4

57
 %
Net (loss) income
$
(0.8
)
$
9.1

$
(9.9
)
n/m

$
(31.2
)
$
14.7

$
(45.9
)
n/m


14



CyrusOne Inc.
Reconciliation of Net (Loss) Income to FFO and Normalized FFO
(Dollars in millions)
(Unaudited)

 
 
Six Months Ended
 
 
Three Months Ended
 
June 30,
Change
June 30,
March 31,
December 31,
September 30,
June 30,
2017
2016
$
%
2017
2017
2016
2016
2016
Reconciliation of Net (Loss) Income to FFO and Normalized FFO:
 
 
 
 
 
 
 
 
 
Net (loss) income
$
(31.2
)
$
14.7

$
(45.9
)
n/m

$
(0.8
)
$
(30.4
)
$
0.8

$
4.4

$
9.1

Real estate depreciation and amortization
104.0

71.4

32.6

46
 %
55.3

48.7

42.0

44.2

38.4

Asset impairments and loss on disposal
3.8


3.8

n/m

3.6

0.2

5.3



Funds from Operations (FFO)
$
76.6

$
86.1

$
(9.5
)
(11
)%
$
58.1

$
18.5

$
48.1

$
48.6

$
47.5

 
 
 
 
 
 
 
 
 
 
Loss on extinguishment of debt
36.5


36.5

n/m

0.3

36.2




New accounting standards and system implementation costs
0.5


0.5

n/m

0.5





Amortization of customer relationship intangibles
11.9

9.7

2.2

23
 %
6.7

5.2

5.6

4.8

4.9

Transaction and acquisition integration costs
2.3

2.7

(0.4
)
(15
)%
1.7

0.6

0.4

1.2

0.4

Severance and management transition costs
0.5


0.5

n/m


0.5

1.9



Legal claim costs
0.8

0.5

0.3

60
 %
0.6

0.2

0.4

0.2

0.3

Normalized Funds from Operations (Normalized FFO)
$
129.1

$
99.0

$
30.1

30
 %
$
67.9

$
61.2

$
56.4

$
54.8

$
53.1

Normalized FFO per diluted common share
$
1.49

$
1.30

$
0.19

15
 %
$
0.77

$
0.72

$
0.68

$
0.67

$
0.67

Weighted Average diluted common shares outstanding
86.5

76.0

10.5

14
 %
88.5

84.5

82.9

81.3

79.0

 
 
 
 
 
 
 
 
 
 
Additional Information:
 
 
 
 
 
 
 
 
 
Amortization of deferred financing costs
2.2

2.0

0.2

10
 %
1.2

1.0

1.1

1.0

1.1

Stock-based compensation
7.7

6.2

1.5

24
 %
4.0

3.7

3.0

2.3

3.2

Non-real estate depreciation and amortization
3.5

2.9

0.6

21
 %
1.7

1.8

1.7

1.6

1.4

Deferred revenue and straight line rent adjustments
(12.1
)
(7.0
)
(5.1
)
73
 %
(2.7
)
(9.4
)
(2.5
)
(10.7
)
(5.0
)
Leasing commissions
(7.7
)
(5.3
)
(2.4
)
45
 %
(3.8
)
(3.9
)
(3.8
)
(3.0
)
(3.4
)
Recurring capital expenditures
(2.2
)
(1.8
)
(0.4
)
22
 %
(0.7
)
(1.5
)
(1.9
)
(1.7
)
(0.9
)











15



CyrusOne Inc.
Market Capitalization Summary, Reconciliation of Net Debt, and Debt Schedule
(Unaudited)

Market Capitalization
(dollars in millions)
Shares or
Equivalents
Outstanding
Market Price
as of
June 30, 2017
Market Value
Equivalents
(in millions)
Common shares
91,291,228

$
55.75

$
5,089.5

Net Debt
 
 
1,829.4

Total Enterprise Value (TEV)
 
 
$
6,918.9


Reconciliation of Net Debt
(dollars in millions)
June 30,
March 31
 
2017
2017
Long-term debt (a)
$
1,857.7

$
1,755.0

Capital lease obligations
11.7

12.4

Less:
 
 
Cash and cash equivalents
(40.0
)
(20.4
)
Net Debt
$
1,829.4

$
1,747.0


(a) Excludes adjustment for deferred financing costs.


Debt Schedule (as of June 30, 2017)
(dollars in millions)
 
 
 
Long-term debt:
Amount
Interest Rate
Maturity Date
Revolving credit facility
$
157.7

L + 155bps

November 2021 (a)
Term loan
250.0

2.72
%
September 2021
Term loan
650.0

2.67
%
January 2022
5.000% senior notes due 2024
500.0

5.000
%
March 2024
5.375% senior notes due 2027
300.0

5.375
%
March 2027
Total long-term debt (b)
$
1,857.7

3.74
%
 
 
 
 
 
Weighted average term of debt:
5.9

years
 

(a)
Assuming exercise of one-year extension option.
(b)
Excludes adjustment for deferred financing costs.











16



CyrusOne Inc.
Colocation Square Footage (CSF) and Utilization
(Unaudited)
 

 
As of June 30, 2017
As of December 31, 2016
As of June 30, 2016
Market
Colocation
Space (CSF)
(a)
CSF
Utilized
(b)
Colocation
Space (CSF)
(a)
CSF
Utilized
(b)
Colocation
Space (CSF)
(a)
CSF
Utilized
(b)
Northern Virginia
437,847

90
%
277,629

100
%
236,863

99
%
Dallas
431,287

93
%
431,287

83
%
431,119

78
%
Cincinnati
404,207

92
%
386,508

92
%
386,484

91
%
Houston
308,074

75
%
308,074

73
%
308,074

70
%
San Antonio
239,879

100
%
108,112

99
%
108,064

99
%
New York Metro
218,448

83
%
121,530

79
%
121,530

89
%
Phoenix
215,964

100
%
215,892

94
%
183,511

94
%
Chicago
136,306

88
%
111,660

82
%
95,024

89
%
Austin
105,610

64
%
105,610

50
%
121,833

49
%
Raleigh-Durham
64,559

80
%

n/a


n/a

International
13,200

77
%
13,200

70
%
13,200

80
%
Total
2,575,381

89
%
2,079,502

85
%
2,005,702

84
%
Stabilized Properties (c)
2,379,515

93
%
1,895,867

92
%
1,822,067

92
%

(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 lease has commenced billing) by total CSF.
(c)
Stabilized properties include data halls that have been in service for at least 24 months or are at least 85% utilized.



























17



CyrusOne Inc.
2017 Guidance

Category
Previous
2017
   Guidance (1)
Revised
2017
       Guidance (1)(2)
Total Revenue
$666 - 681 million
$666 - 681 million
   Base Revenue
$591 - 601 million
$591 - 601 million
   Metered Power Reimbursements
$75 - 80 million
$75 - 80 million
Adjusted EBITDA
$364 - 374 million
$364 - 374 million
Normalized FFO per diluted common share
$2.95 - 3.05
$3.00 - 3.10
Capital Expenditures
$600 - 650 million
$700 - 750 million
   Development
$595 - 640 million
$695 - 740 million
   Recurring
$5 - 10 million
$5 - 10 million
 
 
 
(1) Full year 2017 guidance includes the impact of the Sentinel data center acquisition from 3/1-12/31
(2) Includes impact of approximately 3.6 million shares issued in 2Q’17, with approximately 91.3 million
shares outstanding as of June 30, 2017.

 
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 CyrusOne operates.

CyrusOne does not provide reconciliations for the non-GAAP financial measures included in the annual guidance provided above due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including net income (loss) and adjustments that could be made for transaction and acquisition integration costs, legal claim costs, lease exit costs, asset impairments and loss on disposals and other charges in its reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.



18



CyrusOne Inc.
Data Center Portfolio
As of June 30, 2017
(Unaudited)
 
 
 
Operating Net Rentable Square Feet (NRSF) (a)
Powered
Shell 
Available
for Future 
Development
(NRSF)
(k)
Available Critical Load Capacity
 (MW)
(l)
Stabilized Properties (b)
Metro
Area
Annualized Rent (c)
Colocation Space (CSF) (d)
CSF Leased (e)
CSF
Utilized
(f)
Office & Other (g)
Office & Other Leased (h)
Supporting
Infrastructure
(i)
Total (j)
Dallas - Carrollton
Dallas
$
60,409,360

304,598

80
%
93
%
64,317

61
%
111,383

480,298

68,000

38

Houston - Houston West I
Houston
45,067,350

112,133

96
%
97
%
11,163

99
%
37,243

160,539

3,000

28

Dallas - Lewisville*
Dallas
36,677,714

114,054

94
%
94
%
11,374

89
%
54,122

179,550


21

Cincinnati - 7th Street***
Cincinnati
35,566,063

196,648

92
%
92
%
5,744

100
%
175,148

377,540

46,000

16

Northern Virginia - Sterling II
Northern Virginia
30,650,020

158,998

100
%
100
%
8,651

100
%
55,306

222,955


30

Somerset I
New York Metro
27,501,179

96,918

86
%
86
%
26,613

85
%
88,991

212,522

2,000

11

Totowa - Madison**
New York Metro
25,766,445

51,290

84
%
84
%
22,477

100
%
58,964

132,731


6

Cincinnati - North Cincinnati
Cincinnati
25,218,325

65,303

97
%
97
%
44,886

72
%
52,950

163,139

65,000

14

Wappingers Falls I**
New York Metro
24,976,582

37,000

96
%
97
%
20,167

97
%
15,077

72,244


3

Chicago - Aurora I
Chicago
24,748,318

113,008

96
%
96
%
34,008

100
%
223,478

370,494

27,000

71

Houston - Houston West II
Houston
23,697,450

79,540

93
%
93
%
3,355

74
%
55,023

137,918

12,000

12

San Antonio I
San Antonio
21,991,617

43,891

99
%
100
%
5,989

83
%
45,650

95,530

11,000

12

Phoenix - Chandler II
Phoenix
21,297,731

74,082

100
%
100
%
5,639

38
%
25,519

105,240


12

Houston - Galleria
Houston
17,828,949

63,469

62
%
62
%
23,259

51
%
24,927

111,655


14

Phoenix - Chandler I
Phoenix
17,193,070

73,969

100
%
100
%
34,582

12
%
38,524

147,075

31,000

16

San Antonio III
San Antonio
16,261,404

131,767

100
%
100
%
9,309

100
%
43,126

184,202


24

Raleigh-Durham I
Raleigh-Durham
15,782,996

64,559

80
%
80
%
9,507

100
%
82,119

156,185

257,000

10

Phoenix - Chandler III
Phoenix
15,583,970

67,913

100
%
100
%
2,440

%
30,415

100,768


14

Northern Virginia - Sterling I
Northern Virginia
15,001,443

77,961

98
%
99
%
5,618

77
%
48,598

132,177


12

Austin II
Austin
14,630,041

43,772

94
%
94
%
1,821

100
%
22,433

68,026


5

Northern Virginia - Sterling III
Northern Virginia
14,502,400

79,122

100
%
100
%
7,264

100
%
33,603

119,989


15

San Antonio II
San Antonio
13,807,583

64,221

100
%
100
%
11,255

100
%
41,127

116,603


12

Florence
Cincinnati
13,315,702

52,698

100
%
100
%
46,848

87
%
40,374

139,920


9

Cincinnati - Hamilton*
Cincinnati
8,880,542

46,565

77
%
77
%
1,077

100
%
35,336

82,978


10

Cincinnati - Mason
Cincinnati
5,401,402

34,072

100
%
100
%
26,458

98
%
17,193

77,723


4

Dallas - Midway**
Dallas
5,356,920

8,390

100
%
100
%

%

8,390


1

Stamford - Riverbend**
New York Metro
5,051,087

20,000

30
%
31
%

%
8,484

28,484


2

London - Great Bridgewater**
International
4,094,117

10,000

85
%
94
%

%
514

10,514


1

Norwalk I**
New York Metro
3,476,288

13,240

88
%
90
%
4,085

72
%
40,610

57,935

87,000

2

Northern Virginia - Sterling IV
Northern Virginia
2,589,764

40,670

100
%
100
%
5,523

100
%
32,433

78,626


6

Dallas - Marsh**
Dallas
2,534,506

4,245

100
%
100
%

%

4,245


1

Chicago - Lombard
Chicago
2,268,093

13,516

61
%
61
%
4,115

100
%
12,230

29,861

29,000

3

Stamford - Omega**
New York Metro
1,315,757


%
%
18,552

87
%
3,796

22,348



Totowa - Commerce**
New York Metro
691,429


%
%
20,460

43
%
5,540

26,000



Cincinnati - Blue Ash*
Cincinnati
575,172

6,193

36
%
36
%
6,821

100
%
2,165

15,179


1

South Bend - Crescent*
Chicago
555,137

3,432

43
%
43
%

%
5,125

8,557

11,000

1

Houston - Houston West III
Houston
493,602


%
%
9,095

100
%
10,652

19,747

209,000


Singapore - Inter Business Park**
International
344,565

3,200

22
%
22
%

%

3,200


1

South Bend - Monroe
Chicago
167,576

6,350

22
%
22
%

%
6,478

12,828

4,000

1