CyrusOne
CyrusOne Inc. (Form: 8-K, Received: 05/04/2017 06:12:18)


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: May 3, 2017
CYRUSONE INC.
(Exact Name of Registrant as Specified in its Charter)


 
 
 
 
 
Maryland
 
001-35789
 
46-0691837
(State or other jurisdiction
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 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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 May 3, 2017, CyrusOne Inc. issued a press release announcing financial results and supplemental information for the first quarter ended March 31, 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 May 4, 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 first 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 May 3, 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: May 3, 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 May 3, 2017



A1Q17ERCOVERPAGE.JPG



TABLEOFCONTENTS1Q20.JPG




Exhibit 99.1
CyrusOne Reports First Quarter 2017 Earnings
Signed $32 Million in Annualized GAAP Revenue
Year-over-Year Revenue Growth of 27% and Adjusted EBITDA Growth of 29%
Increasing Normalized FFO per share Guidance Range

DALLAS (May 3, 2017) - CyrusOne Inc. (NASDAQ: CONE), a premier global data center REIT, today announced first quarter 2017 earnings.

Highlights

Category
1Q’17
H/(L) vs.   1Q’16
Revenue
$149.3 million
27%
Net income / (loss)
$(30.4) million
n/m
Adjusted EBITDA
$80.7 million
29%
Normalized FFO
$61.2 million
33%
Net income / (loss) per share
$(0.36)
n/m
Normalized FFO per share
$0.72
14%

Leased 18 megawatts (MW) and 148,000 colocation square feet (CSF) in the first quarter totaling $32 million in annualized GAAP revenue, the fourth highest leasing quarter in the company’s history

Signed a company record 480 leases in the first quarter, 22% higher than the previous record of 392 leases

Backlog of $44 million in annualized GAAP revenue as of the end of the first quarter, representing more than $290 million in total contract value

Closed the previously announced acquisition of two data centers from Sentinel Data Centers and have substantially integrated into the portfolio, establishing a presence in the Southeast and enhancing geographic and customer diversification

Added nine Fortune 1000 companies as new customers (four through first quarter leasing, five through the acquisition), increasing the total number of Fortune 1000 customers to 190 as of the end of the quarter

Closed an $800 million senior notes financing, consisting of $500 million of 5.000% Senior Notes with a 7-year term and $300 million of 5.375% Senior Notes with a 10-year term

“We had one of the strongest bookings quarters in the company’s history and signed a record number of leases, reflecting broad demand for our product offering from both cloud and enterprise customers,” said Gary Wojtaszek, president and chief executive officer of CyrusOne. “Our revised guidance highlights the continued strength of our business, and we maintain a robust sales funnel supported by a development pipeline to meet demand across our markets. We also strengthened our balance sheet and debt maturity profile through the successful $800 million notes offering.”

First Quarter 2017 Financial Results
    
Net loss was $(30.4) million for the first quarter, driven by a $36.2 million loss on extinguishment of debt related to the repurchase or early redemption of the 6.375% Senior Notes due 2022, which were refinanced with new notes having a lower coupon. This compares to net income of $5.6 million in the same period in 2016. Normalized Funds From Operations (Normalized FFO) 1 was $61.2 million for the first quarter, compared to $45.9 million in the same period in 2016, an increase of 33%. Net loss per basic and diluted common share 2 was $(0.36) in the first quarter of 2017, compared to net income of $0.07 per basic and diluted common share in the same period in 2016. Normalized FFO per basic and diluted common share was $0.72 in the first quarter of 2017, an increase of 14% over first quarter 2016.

Revenue was $149.3 million for the first quarter, compared to $117.8 million for the same period in 2016, an increase of 27%. The increase in revenue was driven primarily by a 53% increase in leased CSF and additional interconnection services. Net operating income (NOI) 3 was $97.0 million for the first quarter, compared to $77.5 million in the same period in 2016, an increase of 25%. Adjusted EBITDA 4 was $80.7 million for the first quarter, compared to $62.7 million in the same period in 2016, an increase of 29%.


3



Leasing Activity

CyrusOne leased approximately 18 MW of power and 148,000 CSF in the first quarter, representing $2.6 million in monthly recurring rent inclusive of the monthly impact of installation charges, or approximately $32 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 103 months (8.6 years), and the weighted average remaining lease term of CyrusOne’s portfolio is 57 months (taking into account the impact of the backlog), more than double the weighted average remaining lease term of the portfolio at the time of the Company’s initial public offering. Recurring rent churn 6 for the first quarter was 1.4%, compared to 1.3% for the same period in 2016.

Portfolio Utilization and Development

In the first quarter, the Company completed construction on approximately 236,000 CSF and 45 MW of power capacity in San Antonio, Northern Virginia and Chicago, increasing total CSF across 39 data centers to approximately 2,477,000 CSF. This represents an increase of 869,000 CSF, or 54%, from March 31, 2016. CSF utilization 7 as of the end of the first quarter was 92% for stabilized properties 8 and 88% overall. The Company has development projects underway in Northern Virginia, Phoenix, Dallas, Chicago, San Antonio and Cincinnati that are expected to add approximately 604,000 CSF and 94 MW of power capacity.

Balance Sheet and Liquidity

As of March 31, 2017, the Company had gross assets totaling approximately $4.2 billion, an increase of approximately 41% over gross assets as of March 31, 2016. CyrusOne had $1,755.0 million of long term debt 9 , cash and cash equivalents of $20.4 million, and $586.5 million available under its unsecured revolving credit facility as of March 31, 2017. Net debt 9 was $1,747.0 million as of March 31, 2017, approximately 28% of the Company's total enterprise value of $6.3 billion, or 5.0x Adjusted EBITDA for the last quarter annualized (after adjusting to reflect a full quarter EBITDA contribution from the Sentinel data centers based on March results). Available liquidity 10 was $606.9 million as of March 31, 2017.

On March 17, 2017, CyrusOne closed an $800 million senior notes offering, consisting of $500 million of 5.000% Senior Notes due 2024 and $300 million of 5.375% Senior Notes due 2027. Proceeds were used to repurchase and redeem all of the Company’s outstanding 6.375% Senior Notes due 2022 and pay down borrowings under the revolving credit facility. The transaction extended the Company’s weighted average debt term to 6.2 years.

Dividend

On February 22, 2017, the Company announced a dividend of $0.42 per share of common stock for the first quarter of 2017. The dividend was paid on April 13, 2017, to stockholders of record at the close of business on March 31, 2017.

Additionally, today the Company is announcing a dividend of $0.42 per share of common stock for the second quarter of 2017. The dividend will be paid on July 14, 2017, to stockholders of record at the close of business on June 30, 2017.

Land Acquisition in Pacific Northwest

Subsequent to the end of the first quarter of 2017, CyrusOne exercised its option to purchase 48 acres of land in Quincy, Washington. The purchase positions the Company to offer what it believes to be one of the lowest cost data center solutions in the country and extends its geographic presence to the Pacific Northwest.

Guidance

CyrusOne is updating guidance for full year 2017, increasing the ranges for Revenue, Adjusted EBITDA, 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.

4



Category
Original
2017
Guidance (1)
Revised
2017
Guidance (1)
Total Revenue
$663 - 678 million
$666 - 681 million
   Base Revenue
$588 - 598 million
$591 - 601 million
   Metered Power Reimbursements
$75 - 80 million
$75 - 80 million
Adjusted EBITDA
$359 - 369 million
$364 - 374 million
Normalized FFO per diluted common share
$2.85 - 2.95
$2.95 - 3.05
Capital Expenditures
$550 - 600 million
$600 - 650 million
   Development
$545 - 590 million
$595 - 640 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.  

Upcoming Conferences and Events

Jefferies Global Technology Investor Conference on May 9-10 in Miami, Florida
Morgan Stanley Investor Meeting and Data Center Tour on May 10 in Chicago, Illinois
Cowen and Company 45 th Annual Technology, Media & Telecom Conference on May 31-June 1 in New York City
NAREIT’s REITWeek Conference on June 6-8 in New York City

Conference Call Details

CyrusOne will host a conference call on May 4, 2017, at 11:00 AM Eastern Time (10:00 AM Central Time) to discuss its results for the first quarter of 2017. A live webcast of the conference call and the presentation to be made during the call will be available under the “Investor Relations” tab in the “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 May 4, 2017, through May 18, 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 10104124.

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 .

5



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, 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 and severance and management transition 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 83,978,977 for the first 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 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, cash equivalents, and temporary cash investments.
10 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 more than 970 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 39 data centers worldwide.



# # #

CYRUSONEWATERMARKA10.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 more than 970 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 39 data centers worldwide.

Best-in-Class Sales Force
Flexible Solutions that Scale as Customers Grow
Massively Modular® Engineering with Data Hall Builds in 12-16 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, Chief Technology Officer
Blake Hankins, Chief Information Officer
Website: www.cyrusone.com
Tesh Durvasula, 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, Senior VP & 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
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.
Consolidated Statements of Operations
(Dollars in millions, except per share amounts)
(Unaudited)
 

 
Three Months
 
 
 
Ended March 31,
Change
 
2017
2016
$
%
Revenue:
 
 
 
 
       Base revenue and other
$
134.2

$
106.5

$
27.7

26
 %
       Metered power reimbursements
15.1

11.3

3.8

34
 %
Revenue
149.3

117.8

31.5

27
 %
Costs and expenses:
 
 
 
 
Property operating expenses
52.3

40.3

12.0

30
 %
Sales and marketing
4.9

4.0

0.9

23
 %
General and administrative
15.8

14.0

1.8

13
 %
Depreciation and amortization
55.7

39.3

16.4

42
 %
Transaction and acquisition integration costs
0.6

2.3

(1.7
)
(74
)%
Loss on disposal
0.2


0.2

n/m

Total costs and expenses
129.5

99.9

29.6

30
 %
Operating income
19.8

17.9

1.9

11
 %
Interest expense
13.6

12.1

1.5

12
 %
Loss on extinguishment of debt
36.2


36.2

n/m

Net (loss) income before income taxes
(30.0
)
5.8

(35.8
)
n/m

Income tax expense
(0.4
)
(0.2
)
(0.2
)
100
 %
Net (loss) income attributed to common stockholders
$
(30.4
)
$
5.6

$
(36.0
)
n/m

(Loss) income per share - basic and diluted
$
(0.36
)
$
0.07

$
(0.43
)
n/m


















9



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

 
March 31,
December 31,
Change
 
2017
2016
$
%
Assets
 
 
 
 
Investment in real estate:
 
 
 
 
Land
$
155.8

$
142.7

$
13.1

9
 %
Buildings and improvements
1,274.9

1,008.9

266.0

26
 %
Equipment
1,427.9

1,042.9

385.0

37
 %
Construction in progress
385.1

407.1

(22.0
)
(5
)%
Subtotal
3,243.7

2,601.6

642.1

25
 %
Accumulated depreciation
(625.9
)
(578.5
)
(47.4
)
8
 %
Net investment in real estate
2,617.8

2,023.1

594.7

29
 %
Cash and cash equivalents
20.4

14.6

5.8

40
 %
Rent and other receivables, net
89.4

83.3

6.1

7
 %
Restricted cash
0.6


0.6

n/m

Goodwill
455.1

455.1


 %
Intangible assets, net
217.0

150.2

66.8

44
 %
Other assets
143.5

126.1

17.4

14
 %
Total assets
$
3,543.8

$
2,852.4

$
691.4

24
 %
Liabilities and Equity
 
 


Accounts payable and accrued expenses
$
268.2

$
227.1

$
41.1

18
 %
Deferred revenue
93.3

76.7

16.6

22
 %
Capital lease obligations
12.4

10.8

1.6

15
 %
Long-term debt, net
1,731.8

1,240.1

491.7

40
 %
Lease financing arrangements
134.5

135.7

(1.2
)
(1
)%
Total liabilities
2,240.2

1,690.4

549.8

33
 %
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 87,725,494 and 83,536,250 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively
0.9

0.8

0.1

13
 %
Additional paid in capital
1,620.5

1,412.3

208.2

15
 %
Accumulated deficit
(316.5
)
(249.8
)
(66.7
)
27
 %
Accumulated other comprehensive loss
(1.3
)
(1.3
)

 %
Total stockholders’ equity
1,303.6

1,162.0

141.6

12
 %
Total liabilities and equity
$
3,543.8

$
2,852.4

$
691.4

24
 %













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

 
For the three months ended:
March 31,
December 31,
September 30,
June 30,
March 31,
 
2017
2016
2016
2016
2016
Revenue:
 
 
 
 
 
Base revenue and other
$
134.2

$
123.2

$
128.8

$
118.2

$
106.5

Metered power reimbursements
15.1

14.2

15.0

11.9

11.3

Revenue
149.3

137.4

143.8

130.1

117.8

Costs and expenses:
 
 
 
 
 
Property operating expenses
52.3

47.8

54.6

44.8

40.3

Sales and marketing
4.9

4.0

4.7

4.2

4.0

General and administrative
15.8

17.9

13.9

14.9

14.0

Depreciation and amortization
55.7

49.3

50.6

44.7

39.3

Transaction and acquisition integration costs
0.6

0.4

1.2

0.4

2.3

        Asset impairments and loss on disposal
0.2

5.3




Total costs and expenses
129.5

124.7

125.0

109.0

99.9

Operating income
19.8

12.7

18.8

21.1

17.9

Interest expense
13.6

11.4

13.8

11.5

12.1

Loss on extinguishment of debt
36.2





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

5.0

9.6

5.8

Income tax expense
(0.4
)
(0.5
)
(0.6
)
(0.5
)
(0.2
)
Net (loss) income attributed to common stockholders
$
(30.4
)
$
0.8

$
4.4

$
9.1

$
5.6

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

$
0.05

$
0.11

$
0.07




















10



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

 
March 31,
December 31,
September 30,
June 30,
March 31,
 
2017
2016
2016
2016
2016
Assets
 
 
 
 
 
Investment in real estate:
 
 
 
 
 
Land
$
155.8

$
142.7

$
143.1

$
122.9

$
98.8

Buildings and improvements
1,274.9

1,008.9

1,009.3

995.2

942.0

Equipment
1,427.9

1,042.9

976.9

917.8

715.6

Construction in progress
385.1

407.1

304.0

178.9

327.7

Subtotal
3,243.7

2,601.6

2,433.3

2,214.8

2,084.1

Accumulated depreciation
(625.9
)
(578.5
)
(546.4
)
(503.2
)
(467.2
)
Net investment in real estate
2,617.8

2,023.1

1,886.9

1,711.6

1,616.9

Cash and cash equivalents
20.4

14.6

11.0

13.2

87.7

Rent and other receivables, net
89.4

83.3

73.0

66.4

67.1

Restricted cash
0.6



0.3

0.7

Goodwill
455.1

455.1

455.1

453.4

453.4

Intangible assets, net
217.0

150.2

155.8

160.6

165.5

Other assets
143.5

126.1

114.5

105.8

92.2

Total assets
$
3,543.8

$
2,852.4

$
2,696.3

$
2,511.3

$
2,483.5

Liabilities and Equity
 
 
 
 
 
Accounts payable and accrued expenses
$
268.2

$
227.1

$
214.6

$
163.7

$
196.2

Deferred revenue
93.3

76.7

72.5

71.7

76.4

Capital lease obligations
12.4

10.8

11.9

10.9

11.5

Long-term debt, net
1,731.8

1,240.1

1,065.7

1,096.2

1,010.3

Lease financing arrangements
134.5

135.7

141.9

144.3

147.0

Total liabilities
2,240.2

1,690.4

1,506.6

1,486.8

1,441.4

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 87,725,494 and 83,536,250 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively
0.9

0.8

0.8

0.8

0.8

Additional paid in capital
1,620.5

1,412.3

1,408.9

1,215.7

1,212.0

Accumulated deficit
(316.5
)
(249.8
)
(218.8
)
(191.5
)
(170.3
)
Accumulated other comprehensive loss
(1.3
)
(1.3
)
(1.2
)
(0.5
)
(0.4
)
Total stockholders' equity
1,303.6

1,162.0

1,189.7

1,024.5

1,042.1

Total liabilities and equity
$
3,543.8

$
2,852.4

$
2,696.3

$
2,511.3

$
2,483.5









11



CyrusOne Inc.
Consolidated Statements of Cash Flow
(Dollars in millions)
(Unaudited)  
 
Three Months Ended March 31, 2017
Three Months Ended March 31, 2016
Cash flows from operating activities:
 
 
Net (loss) income
$
(30.4
)
$
5.6

Adjustments to reconcile net (loss) income to net cash provided by operating activities:
 
 
Depreciation and amortization
55.7

39.3

Non-cash interest expense and change in interest accrual
(1.0
)
0.9

Stock-based compensation expense
3.7

3.0

Provision for bad debt

0.1

Loss on extinguishment of debt
36.2


Loss on disposal
0.2


Change in operating assets and liabilities:
 
 
Rent receivables and other assets
(20.0
)
6.2

Accounts payable and accrued expenses
(4.9
)

Deferred revenues
15.7

(2.3
)
Net cash provided by operating activities
55.2

52.8

Cash flows from investing activities:
 
 
Capital expenditures – asset acquisitions, net of cash acquired
(492.3
)
(131.1
)
Capital expenditures – other development
(182.5
)
(78.5
)
Changes in restricted cash
(0.6
)
0.8

Net cash used in investing activities
(675.4
)
(208.8
)
Cash flows from financing activities:
 
 
Issuance of common stock
211.0

256.0

Dividends paid
(32.4
)
(22.8
)
Borrowings from credit facility
440.0

320.0

Payments on credit facility
(270.0
)
(305.0
)
Payments on senior notes
(474.8
)

Proceeds from issuance of debt
800.0


Payments on capital leases and lease financing arrangements
(2.3
)
(3.1
)
Debt issuance costs
(8.8
)
(2.1
)
Payment of debt extinguishment costs
(30.3
)

Tax payment upon exercise of equity awards
(6.4
)
(13.6
)
Net cash provided by financing activities
626.0

229.4

Net increase in cash and cash equivalents
5.8

73.4

Cash and cash equivalents at beginning of period
14.6

14.3

Cash and cash equivalents at end of period
$
20.4

$
87.7

 
 
 
Supplemental disclosures
 
 
Cash paid for interest, net of amount capitalized
$
18.3

$
6.2

Cash paid for income taxes

0.1

Capitalized interest
3.6

2.1

Non-cash investing and financing activities
 
 
Acquisition and development of properties in accounts payable and other liabilities
174.3

111.9

Dividends payable
37.7

31.5

Debt issuance cost payable
1.5



12



CyrusOne Inc.
Net Operating Income and Reconciliation of Net (Loss) Income to Adjusted EBITDA
(Dollars in millions)
(Unaudited)
 
 
Three Months Ended
 
 
Three Months Ended
 
March 31,
Change
March 31,
December 31,
September 30,
June 30,
March 31,
 
2017
2016
$
%
2017
2016
2016
2016
2016
Net Operating Income
 
 
 
 
 
 
 
 
 
Revenue
$
149.3

$
117.8

$
31.5

27%
$
149.3

$
137.4

$
143.8

$
130.1

$
117.8

Property operating expenses
52.3

40.3

12.0

30%
52.3

47.8

54.6

44.8

40.3

Net Operating Income (NOI)
$
97.0

$
77.5

$
19.5

25%
$
97.0

$
89.6

$
89.2

$
85.3

$
77.5

NOI as a % of Revenue
65.0
%
65.8
%
 
 
65.0
%
65.2
%
62.0
%
65.6
%
65.8
%
Reconciliation of Net (Loss) Income to Adjusted EBITDA:
 
 
 
 
 
 
 
 
 
Net (loss) income
$
(30.4
)
$
5.6

$
(36.0
)
n/m
$
(30.4
)
$
0.8

$
4.4

$
9.1

$
5.6

Interest expense
13.6

12.1

1.5

12%
13.6

11.4

13.8

11.5

12.1

Income tax expense
0.4

0.2

0.2

100%
0.4

0.5

0.6

0.5

0.2

Depreciation and amortization
55.7

39.3

16.4

42%
55.7

49.3

50.6

44.7

39.3

Transaction and acquisition integration costs
0.6

2.3

(1.7
)
(74)%
0.6

0.4

1.2

0.4

2.3

Legal claim costs
0.2

0.2


—%
0.2

0.4

0.2

0.3

0.2

Stock-based compensation
3.7

3.0

0.7

23%
3.7

3.0

2.3

3.2

3.0

Severance and management transition costs
0.5


0.5

n/m
0.5

1.9




Loss on extinguishment of debt
36.2


36.2

n/m
36.2





Asset impairments and loss on disposals
0.2


0.2

n/m
0.2

5.3




Adjusted EBITDA
$
80.7

$
62.7

$
18.0

29%
$
80.7

$
73.0

$
73.1

$
69.7

$
62.7

Adjusted EBITDA as a % of Revenue
54.1
%
53.2
%
 
 
54.1
%
53.1
%
50.8
%
53.6
%
53.2
%


CyrusOne Inc.
Reconciliation of Revenue to Net Operating Income to Net (Loss) Income
(Dollars in millions)
(Unaudited)
 
Three Months Ended
 
 
 
March 31,
Change
2017
2016
$
%
Revenue
$
149.3

$
117.8

$
31.5

27
 %
Property operating expenses
52.3

40.3

12.0

30
 %
Net Operating Income
$
97.0

$
77.5

$
19.5

25
 %
Sales and marketing
4.9

4.0

0.9

23
 %
General and administrative
15.8

14.0

1.8

13
 %
Depreciation and amortization
55.7

39.3

16.4

42
 %
Transaction and acquisition integration costs
0.6

2.3

(1.7
)
(74
)%
Loss on disposal
0.2


0.2

n/m

Interest expense
13.6

12.1

1.5

12
 %
Loss on extinguishment of debt
36.2


36.2

n/m

Income tax expense
0.4

0.2

0.2

100
 %
Net (loss) income
$
(30.4
)
$
5.6

$
(36.0
)
n/m


13



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

 
 
Three Months Ended
 
 
Three Months Ended
 
March 31,
Change
March 31,
December 31,
September 30,
June 30,
March 31,
2017
2016
$
%
2017
2016
2016
2016
2016
Reconciliation of Net (Loss) Income to FFO and Normalized FFO:
 
 
 
 
 
 
 
 
 
Net (loss) income
$
(30.4
)
$
5.6

$
(36.0
)
n/m

$
(30.4
)
$
0.8

$
4.4

$
9.1

$
5.6

Real estate depreciation and amortization
48.7

33.0

15.7

48
 %
48.7

42.0

44.2

38.4

33.0

Asset impairments and loss on disposal
0.2


0.2

n/m

0.2

5.3




Funds from Operations (FFO)
$
18.5

$
38.6

$
(20.1
)
(52
)%
$
18.5

$
48.1

$
48.6

$
47.5

$
38.6

 
 
 
 
 
 
 
 
 
 
Loss on extinguishment of debt
36.2


36.2

n/m

36.2





Amortization of customer relationship intangibles
5.2

4.8

0.4

8
 %
5.2

5.6

4.8

4.9

4.8

Transaction and acquisition integration costs
0.6

2.3

(1.7
)
(74
)%
0.6

0.4

1.2

0.4

2.3

Severance and management transition costs
0.5


0.5

n/m

0.5

1.9




Legal claim costs
0.2

0.2


 %
0.2

0.4

0.2

0.3

0.2

Normalized Funds from Operations (Normalized FFO)
$
61.2

$
45.9

$
15.3

33
 %
$
61.2

$
56.4

$
54.8

$
53.1

$
45.9

Normalized FFO per diluted common share
$
0.72

$
0.63

$
0.09

14
 %
$
0.72

$
0.68

$
0.67

$
0.67

$
0.63

Weighted Average diluted common shares outstanding
84.5

72.8

11.7

16
 %
84.5

82.9

81.3

79.0

72.8

 
 
 
 
 
 
 
 
 
 
Additional Information:
 
 
 
 
 
 
 
 
 
Amortization of deferred financing costs
1.0

0.9

0.1

11
 %
1.0

1.1

1.0

1.1

0.9

Stock-based compensation
3.7

3.0

0.7

23
 %
3.7

3.0

2.3

3.2

3.0

Non-real estate depreciation and amortization
1.8

1.5

0.3

20
 %
1.8

1.7

1.6

1.4

1.5

Deferred revenue and straight line rent adjustments
(9.4
)
(2.0
)
(7.4
)
n/m

(9.4
)
(2.5
)
(10.7
)
(5.0
)
(2.0
)
Leasing commissions
(3.9
)
(1.9
)
(2.0
)
105
 %
(3.9
)
(3.8
)
(3.0
)
(3.4
)
(1.9
)
Recurring capital expenditures
(1.5
)
(0.9
)
(0.6
)
67
 %
(1.5
)
(1.9
)
(1.7
)
(0.9
)
(0.9
)











14



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
March 31, 2017
Market Value
Equivalents
(in millions)
Common shares
87,725,494

$
51.47

$
4,515.2

Net Debt
 
 
1,747.0

Total Enterprise Value (TEV)
 
 
$
6,262.2


Reconciliation of Net Debt
(dollars in millions)
March 31,
December 31
 
2017
2016
Long-term debt (a)
$
1,755.0

$
1,262.3

Capital lease obligations
12.4

10.8

Less:
 
 
Cash and cash equivalents
(20.4
)
(14.6
)
Net Debt
$
1,747.0

$
1,258.5


(a) Excludes adjustment for deferred financing costs.


Debt Schedule (as of March 31, 2017)
(dollars in millions)
 
 
 
Long-term debt:
Amount
Interest Rate
Maturity Date
5.000% senior notes due 2024
$
500.0

5.000
%
March 2024
5.375% senior notes due 2027
300.0

5.375
%
March 2027
Revolving credit facility
405.0

L + 155 bps

November 2021 (a)
Term loan
300.0

2.48
%
January 2022
Term loan
250.0

2.48
%
September 2021
Total long-term debt (b)
$
1,755.0

3.69
%
 
 
 
 
 
Weighted average term of debt:
6.2

years
 

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











15



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

 
As of March 31, 2017
As of December 31, 2016
As of March 31, 2016
Market
Colocation
Space (CSF)
(a)
CSF
Utilized
(b)
Colocation
Space (CSF)
(a)
CSF
Utilized
(b)
Colocation
Space (CSF)
(a)
CSF
Utilized
(b)
Dallas
431,287

87
%
431,287

83
%
347,926

93
%
Cincinnati
386,556

91
%
386,508

92
%
386,484

91
%
Northern Virginia
356,751

100
%
277,629

100
%
74,653

100
%
Houston
308,074

74
%
308,074

73
%
255,142

88
%
San Antonio
239,879

100
%
108,112

99
%
43,843

100
%
New York Metro
218,448

83
%
121,530

79
%
121,434

87
%
Phoenix
215,892

100
%
215,892

94
%
147,931

100
%
Chicago
136,306

86
%
111,660

82
%
95,024

89
%
Austin
105,610

59
%
105,610

50
%
121,833

47
%
Raleigh-Durham
64,559

80
%

n/a


n/a

International
13,200

74
%
13,200

70
%
13,200

80
%
Total
2,476,562

88
%
2,079,502

85
%
1,607,470

89
%
Stabilized Properties (c)
2,292,927

92
%
1,895,867

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.



























16



CyrusOne Inc.
2017 Guidance

Category
Original
2017
Guidance (1)
Revised
2017
Guidance (1)
Total Revenue
$663 - 678 million
$666 - 681 million
   Base Revenue
$588 - 598 million
$591 - 601 million
   Metered Power Reimbursements
$75 - 80 million
$75 - 80 million
Adjusted EBITDA
$359 - 369 million
$364 - 374 million
Normalized FFO per diluted common share
$2.85 - 2.95
$2.95 - 3.05
Capital Expenditures
$550 - 600 million
$600 - 650 million
   Development
$545 - 590 million
$595 - 640 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.  
 
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.



17



CyrusOne Inc.
Data Center Portfolio
As of March 31, 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
$
53,548,867

235,733

88
%
88
%
64,317

61
%
100,844

400,894

27,000

26

Houston - Houston West I
Houston
44,292,523

112,133

96
%
97
%
11,163

99
%
37,243

160,539

3,000

28

Dallas - Lewisville*
Dallas
36,472,286

114,054

96
%
96
%
11,374

89
%
54,122

179,550


21

Cincinnati - 7th Street***
Cincinnati
34,495,475

178,997

91
%
91
%
5,744

100
%
167,241

351,982

46,000

13

Northern Virginia - Sterling II
Northern Virginia
31,471,220

158,998

100
%
100
%
8,651

100
%
55,306

222,955


30

Totowa - Madison**
New York Metro
26,058,138

51,290

86
%
87
%
22,477

100
%
58,964

132,731


6

Somerset I
New York Metro
25,645,209

96,918

86
%
86
%
26,613

85
%
88,991

212,522

2,000

11

Cincinnati - North Cincinnati
Cincinnati
25,303,075

65,303

97
%
97
%
44,886

72
%
52,950

163,139

65,000

14

Wappingers Falls I**
New York Metro
24,271,680

37,000

95
%
96
%
20,167

97
%
15,077

72,244


3

Chicago - Aurora I
Chicago
23,476,851

113,008

93
%
93
%
34,008

100
%
223,478

370,494

27,000

71

Houston - Houston West II
Houston
23,069,910

79,540

93
%
93
%
3,355

74
%
55,023

137,918

12,000

12

San Antonio I
San Antonio
21,757,208

43,891

99
%
99
%
5,989

83
%
45,650

95,530

11,000

12

Phoenix - Chandler II
Phoenix
19,375,295

74,058

100
%
100
%
5,639

38
%
25,519

105,216


12

Houston - Galleria
Houston
18,548,913

63,469

62
%
62
%
23,259

51
%
24,927

111,655


14

Raleigh-Durham I
Raleigh-Durham
15,274,231

64,559

80
%
80
%
9,507

100
%
82,119

156,185

257,000

10

Florence
Cincinnati
15,100,422

52,698

100
%
100
%
46,848

87
%
40,374

139,920


9

Northern Virginia - Sterling I
Northern Virginia
14,498,072

77,961

98
%
98
%
5,618

77
%
48,598

132,177


12

Austin II
Austin
14,464,696

43,772

94
%
94
%
1,821

100
%
22,433

68,026


5

Phoenix - Chandler I
Phoenix
13,222,530

73,921

92
%
100
%
34,582

12
%
38,572

147,075

31,000

16

San Antonio II
San Antonio
12,886,504

64,221

100
%
100
%
11,255

100
%
41,127

116,603


12

Phoenix - Chandler III
Phoenix
11,585,765

67,913

93
%
100
%
2,440

%
30,415

100,768


14

Cincinnati - Hamilton*
Cincinnati
8,991,791

46,565

77
%
77
%
1,077

100
%
35,336

82,978


10

Northern Virginia - Sterling III
Northern Virginia
7,097,032

79,122

100
%
100
%
7,264

100
%
33,603

119,989


15

Dallas - Midway**
Dallas
5,354,114

8,390

100
%
100
%

%

8,390


1

Cincinnati - Mason
Cincinnati
5,237,121

34,072

100
%
100
%
26,458

98
%
17,193

77,723


4

Stamford - Riverbend**
New York Metro
4,962,496

20,000

29
%
31
%

%
8,484

28,484


2

London - Great Bridgewater**
International
4,352,018

10,000

85
%
91
%

%
514

10,514


1

San Antonio III
San Antonio
3,636,000

131,767

100
%
100
%
9,309

100
%
43,126

184,202


24

Norwalk I**
New York Metro
3,370,835

13,240

83
%
85
%
4,085

72
%
40,610

57,935

87,000

2

Dallas - Marsh**
Dallas
2,473,978

4,245

100
%
100
%

%

4,245


1

Chicago - Lombard
Chicago
2,176,790

13,516

61
%
61
%
4,115

100
%
12,230

29,861

29,000

3

Northern Virginia - Sterling IV
Northern Virginia
1,709,689

40,670

100
%
100
%
5,523

100
%
32,433

78,626

14,000

6

Stamford - Omega**
New York Metro
1,617,482


%
%
18,552

87
%
3,796

22,348



Totowa - Commerce**
New York Metro
640,429


%
%
20,460

41
%
5,540

26,000



Cincinnati - Blue Ash*
Cincinnati
555,092

6,193

36
%
36
%
6,821

100
%
2,165

15,179


1

South Bend - Crescent*
Chicago
553,705

3,432

43
%
43
%

%
5,125

8,557

11,000

1

Houston - Houston West III
Houston
482,491


%
%
9,095

100
%
10,652

19,747

209,000


Singapore - Inter Business Park**
International
317,006

3,200

22
%
22
%

%

3,200


1

South Bend - Monroe
Chicago
167,576

6,350

22
%
22
%

%
6,478

12,828

4,000

1

Cincinnati - Goldcoast
Cincinnati
96,089

2,728

%
%
5,280

100
%
16,481

24,489

14,000

1

Stabilized Properties - Total
 
$
558,610,604

2,292,927

92
%
92
%
517,752

77
%
1,582,739

4,393,418

849,000

420

 
 
 
 
 
 
 
 
 
 
 
 
Pre-Stabilized Properties (b)
 
 
 
 
 
 
 
 
 
 
 
Austin III
Austin
5,598,477

61,838

19
%
33
%
15,055

44
%
20,629

97,522

67,000

3

Dallas - Carrollton (DH #5)
Dallas
4,525,493

68,865

54
%
66
%

%
10,539

79,404


6

Houston - Houston West III (DH #1)
Houston
1,001,862

52,932

10
%
10
%

%
21,992

74,924


6

All Properties - Total
 
$
569,736,436

2,476,562

87
%
88
%
532,807

77
%
1,635,899

4,645,268

916,000

435



18



*
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 Cincinnati - 7th Street property includes data for two facilities, one of which we lease and one of which we own.
    

(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 CyrusOne.
(b)
Stabilized properties include data halls that have been in service for at least 24 months or are at least 85% utilized. Pre-stabilized properties include data halls that have been in service for less than 24 months and are less than 85% utilized.
(c)
Represents monthly contractual rent (defined as cash rent including customer reimbursements for metered power) under existing customer leases as of March 31, 2017 , multiplied by 12. For the month of March 2017 , customer reimbursements were $ 62.3 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, 2015 through March 31, 2017 , customer reimbursements under leases with separately metered power constituted between 10.6% and 12.6% of annualized rent. After giving effect to abatements, free rent and other straight-line adjustments, our annualized effective rent as of March 31, 2017 was $607.4 million . Our annualized effective rent was greater than our annualized rent as of March 31, 2017 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)
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.
(e)
Percent leased is determined based on CSF being billed to customers under signed leases as of March 31, 2017 divided by total CSF. Leases signed but not commenced as of March 31, 2017 are not included.
(f)
Utilization is calculated by dividing CSF under signed leases for colocation space (whether or not the lease has commenced billing) by total CSF.
(g)
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.
(h)
Percent leased is determined based on Office & Other space being billed to customers under signed leases as of March 31, 2017 divided by total Office & Other space. Leases signed but not commenced as of March 31, 2017 are not included.
(i)
Represents infrastructure support space, including mechanical, telecommunications and utility rooms, as well as building common areas.
(j)
Represents the NRSF at an operating facility that is currently leased or readily available for lease. This excludes existing vacant space held for development.
(k)
Represents space that is under roof that could be developed in the future for operating NRSF, rounded to the nearest 1,000.
(l)
Critical load capacity represents the aggregate power available for lease and exclusive use by customers 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.























19



CyrusOne Inc.
NRSF Under Development
As of March 31, 2017
(Dollars in millions)
(Unaudited)

 
 
 
 
NRSF Under Development (a)
 
Under Development Costs (b)
Facilities
Metropolitan
Area
Estimated Completion Date
Colocation Space
(CSF)
Office & Other
Supporting
Infrastructure
Powered  Shell (b)
Total
Critical Load MW Capacity (c)
Actual to
Date (d)
Estimated 
Costs to
Completion (e)
Total
Cincinnati - 7th Street
Cincinnati
2Q'17
18,000


8,000


26,000

3.0

$

$12-13
$12-13
Phoenix - Chandler IV
Phoenix
2Q'17
73,000

3,000

27,000


103,000

12.0

27

25-28
52-55
Northern Virginia - Sterling IV
Northern Virginia
2Q'17
27,000


2,000


29,000

9.0

1

37-41
38-42
San Antonio IV
San Antonio
3Q'17
60,000

16,000

21,000


97,000

12.0


56-62
56-62
Phoenix - Chandler V
Phoenix
3Q'17



185,000

185,000


2

17-19
19-21
Phoenix - Chandler VI
Phoenix
3Q'17
74,000


23,000

96,000

193,000

12.0


60-67
60-67
Northern Virginia - Sterling V
Northern Virginia
3Q'17
159,000

1,000

101,000

380,000

641,000

24.0

52

116-129
168-181
Chicago - Aurora II
Chicago
3Q'17
77,000

10,000

14,000

272,000

373,000

16.0

9

86-95
95-104
Dallas - Carrollton
Dallas
3Q'17
116,000


21,000


137,000

6.0

1