CyrusOne Reports First Quarter 2020 Earnings
1Q’20 Year-over-Year Revenue Growth of 9%
Signed
Highlights
Category |
1Q’20 |
vs. 1Q’19 |
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Revenue |
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9% |
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Net income / (loss) |
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(84)% |
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Adjusted EBITDA |
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11% |
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Normalized FFO |
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25% |
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Net income / (loss) per diluted share |
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(84)% |
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Normalized FFO per diluted share |
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18% |
- Leased 44 megawatts (“MW”) and 289,000 colocation square feet (“CSF”) in the first quarter, totaling
$60 million in annualized GAAP revenue, the second-highest quarterly total in the company’s history
– Leased 31.5 MW totaling
- Backlog of
$88 million in annualized GAAP revenue as of the end of the first quarter, the highest quarter-end backlog in the company’s history, representing approximately$610 million in total contract value1
- As previously announced, amended our senior unsecured credit agreement, extending the maturity dates and decreasing the interest rate margins applicable on the revolving credit facility and term loans
- As previously announced, issued €500 million of 1.45% Senior Notes due 2027, with the proceeds used to repay floating rate Euro denominated obligations and fund continued development in
Europe
- As previously announced, entered into a forward sale agreement through the at-the-market (“ATM”) equity program with respect to approximately 2.0 million shares of common stock, which will result in estimated net proceeds of approximately
$123 million upon settlement byMarch 2021
– Combined with the forward sale agreement entered into in the fourth quarter of 2019, which will result in estimated net proceeds of approximately
“First and foremost, our thoughts and well wishes go out to the people most directly impacted by COVID-19, particularly those who have lost loved ones, and we want to thank our first responders and healthcare professionals that are on the front line,” said
First Quarter 2020 Financial Results
Revenue was
Net income was
Net operating income (“NOI”)3 was
Normalized Funds From Operations (“Normalized FFO”)5 was
Leasing Activity
In the first quarter, the Company completed construction on 50,000 CSF and 6 MW of power capacity in
Balance Sheet and Liquidity
As of
As previously announced, the Company amended its senior unsecured credit agreement, extending the maturity dates and decreasing the interest rate margins applicable on the revolving credit facility and term loans. The amended agreement consists of a
The all-in drawn margin applicable to the revolving credit facility based on the Company’s current leverage level has decreased by 25 basis points compared to the margin on the previous revolving credit facility. The current margin is 100 basis points over the applicable index for floating rate advances, and the annual facility fee is 20 basis points. The margin on the term loan maturing in
As previously announced, the Company issued €500 million of 1.45% Senior Notes due 2027, with the proceeds used to repay floating rate Euro denominated obligations and fund continued development in
As previously announced, the Company entered into a forward sale agreement through the ATM equity program with respect to approximately 2.0 million shares, which will result in estimated net proceeds of approximately
Dividend
On
Additionally, today the Company is announcing a dividend of
Guidance
Category |
Previous 2020 Guidance |
Revised 2020 Guidance |
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Total Revenue |
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Lease and Other Revenues from Customers |
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Metered Power Reimbursements |
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Adjusted EBITDA |
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Normalized FFO per diluted common share |
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Capital Expenditures |
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Development(1) |
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Recurring |
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(1)Development capital expenditures include the acquisition of land for future development. |
Upcoming Conferences and Events (All Virtual)
- MoffettNathanson Media & Communications Summit on
May 11-12 - J.P. Morgan Global
Technology, Media and Communications Conference onMay 12-14 RBC Capital Markets Global Data Center /Connectivity Conference onMay 27 - Cowen and Company
Technology, Media & Telecom Conference onMay 26-29 - NAREIT’s
REITweek Investor Conference onJune 2-4
Conference Call Details
Safe Harbor
This release and the documents incorporated by reference herein contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward- looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and include this statement for purposes of complying with these safe harbor provisions. 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 and our customers’ respective businesses and industries, 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, (i) the potential widespread and highly uncertain impact of public health outbreaks, epidemics and pandemics, such as the COVID-19 pandemic; (ii) loss of key customers; (iii) economic downturn, natural disaster or oversupply of data centers in the limited geographic areas that we serve; (iv) risks related to the development of our properties including, without limitation, obtaining applicable permits, power and connectivity and our ability to successfully lease those properties; (v) weakening in the fundamentals for data center real estate, including but not limited to, decreases in or slowed growth of global data, e-commerce and demand for outsourcing of data storage and cloud-based applications; (vi) loss of access to key third-party service providers and suppliers; (vii) risks of loss of power or cooling which may interrupt our services to our customers; (viii) inability to identify and complete acquisitions and operate acquired properties, including those acquired in the acquisition of
Adoption of New Accounting Standard and Use of Non-GAAP Financial Measures and Other Metrics
In
We adopted ASU 2016-02 on
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, Normalized Funds From Operations per Diluted Common Share, Adjusted EBITDA, Net Operating Income, and Net Debt should not be construed as being more important than, or a substitute for, 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, Normalized FFO per Diluted Common Share, Adjusted EBITDA, and NOI, which are non-GAAP financial measures commonly used in the REIT industry, as supplemental performance measures. Management uses these measures as supplemental performance measures because, when compared period over period, they 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), these measures are used by investors as a basis to evaluate REITs. Other REITs may not calculate these measures in the same manner, and, as presented, they may not be comparable to others. Therefore, FFO, Normalized FFO, NOI, and Adjusted EBITDA should be considered only as supplements to net income presented in accordance with GAAP as measures of our performance. FFO, Normalized FFO, NOI, and Adjusted EBITDA should not be used as measures of liquidity or as indicative of funds available to fund our cash needs, including our ability to make distributions. These measures also should not be used as supplements to or substitutes for cash flow from operating activities computed in accordance with GAAP. The Company believes that Net Debt provides a useful measure of liquidity and financial health.
1Inclusive of 4.5 MW and approximately
2Net income (loss) per diluted common share is defined as Net income (loss) divided by the weighted average diluted common shares outstanding for the period, which were 115.1 million for the first quarter of 2020 and 108.8 million for the first quarter of 2019.
3We use Net Operating Income ("NOI"), which is a non-GAAP financial measure commonly used in the REIT industry, as a supplemental performance measure. We use NOI as a supplemental performance measure because, when compared period over period, it captures trends in occupancy rates, rental rates and operating expenses. We also believe that, as a widely recognized measure of the performance of REITs, NOI is used by investors as a basis to evaluate REITs.
We calculate NOI as Net income, adjusted for Sales and marketing expenses, General and administrative expenses, Depreciation and amortization expenses, Transaction, acquisition, integration and other related expenses, Interest expense, net, Gain on marketable equity investment, Loss on early extinguishment of debt, Foreign currency and derivative gains, net, Other expense, and other items as appropriate. Amortization of deferred leasing costs is presented in Depreciation and amortization expenses, which is excluded from NOI. Sales and marketing expenses are not property-specific, rather these expenses support our entire portfolio. As a result, we have excluded these sales and marketing expenses from our NOI calculation, consistent with the treatment of General and administrative expenses, which also support our entire portfolio. Because the calculation of NOI excludes various expenses, the utility of NOI as a measure of our performance is limited. Other REITs may not calculate NOI in the same manner. Accordingly, our NOI may not be comparable to others. Therefore, NOI should be considered only as a supplement to Net income presented in accordance with GAAP as a measure of our performance. NOI should not be used as a measure of our liquidity or as indicative of funds available to fund our cash needs, including our ability to make distributions. NOI also should not be used as a supplement to or substitute for cash flow from operating activities computed in accordance with GAAP.
4Adjusted EBITDA, which is a non-GAAP financial measure, is defined as Net income (loss) as defined by GAAP adjusted for Interest expense, net; Income tax benefit ; Depreciation and amortization; Impairment losses; Transaction, acquisition, integration and other related expenses; Legal claim costs; Stock-based compensation expense; Cash severance and management transition costs; Severance-related stock compensation costs; Loss on early extinguishment of debt; New accounting standards and regulatory compliance and the related system implementation costs; (Gain) loss on marketable equity investment; Foreign currency and derivative (gains) losses, net; and Other expense (income). 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.
5We use funds from operations ("FFO") and normalized funds from operations ("Normalized FFO"), which are non-GAAP financial measures commonly used in the REIT industry, as supplemental performance measures. We use FFO and Normalized FFO as supplemental performance measures because, when compared period over period, they capture trends in occupancy rates, rental rates and operating costs. We also believe that, as widely recognized measures of the performance of REITs, FFO and Normalized FFO are used by investors as a basis to evaluate REITs.
We calculate FFO as Net income (loss) computed in accordance with GAAP before Real estate depreciation and amortization and Impairment losses and loss on disposal of assets. While it is consistent with the definition of FFO promulgated by the
We calculate Normalized FFO as FFO plus Loss on early extinguishment of debt; (Gain) loss on marketable equity investment; Foreign currency and derivative gains, net; New accounting standards and regulatory compliance and the related system implementation costs; Amortization of tradenames; Transaction, acquisition, integration and other related expenses; Cash severance and management transition costs; Severance-related stock compensation costs; Legal claim costs and other items as appropriate. We believe our Normalized FFO calculation provides a comparable measure between different periods. Other REITs may not calculate Normalized FFO in the same manner. Accordingly, our Normalized FFO may not be comparable to others.
In addition, because FFO and Normalized FFO exclude Real estate depreciation and amortization, and capture neither the changes in the value of our properties that result from use or from market conditions, nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our results from operations, the utility of FFO and Normalized FFO as measures of our performance is limited. Therefore, FFO and Normalized FFO should be considered only as supplements to Net income presented in accordance with GAAP as measures of our performance. FFO and Normalized FFO should not be used as measures of our liquidity or as indicative of funds available to fund our cash needs, including our ability to make distributions. FFO and Normalized FFO also should not be used as supplements to or substitutes for cash flow from operating activities computed in accordance with GAAP.
6Annualized GAAP revenue is equal to monthly recurring rent, defined as average monthly contractual rent during the term of the lease plus the monthly impact of installation charges, multiplied by 12. It can be shown both inclusive and exclusive of the Company’s estimate of customer reimbursements for metered power.
7Recurring rent churn percentage 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.
8Percentage CSF leased is calculated by dividing CSF under signed leases for colocation space (whether or not the lease has commenced billing) by total CSF. Percentage CSF leased differs from CSF occupied presented in the Data Center Portfolio table because the leased rate includes CSF for signed leases that have not commenced billing.
9Stabilized properties include data halls that have been in service for at least 24 months or are at least 85% leased.
10Gross asset value is defined as total assets plus accumulated depreciation.
11Long-term debt and net debt exclude adjustments for deferred financing costs and bond discounts / premiums. Net debt, which is a non-GAAP financial measure, provides a useful measure of liquidity and financial health. The Company defines net debt as long-term debt and finance lease liabilities, offset by cash and cash equivalents.
12The estimated impact of the adoption of ASC 842 on Adjusted EBITDA for the last quarter annualized is
13Liquidity is calculated as cash, cash equivalents, and temporary cash investments on hand, plus the undrawn capacity on CyrusOne’s revolving credit facility, plus the pro forma impact of settlement of the forward sale agreements.
About
With a track record of meeting and surpassing the aggressive speed-to-market demands of hyperscale cloud providers, as well as the expanding IT infrastructure requirements of the enterprise,
Company Profile
- 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 |
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Phone: (972) 350-0060 |
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Website: www.cyrusone.com |
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Analyst Coverage |
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Firm |
Analyst |
Phone Number |
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(646) 855-5664 |
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(646) 949-9030 |
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(212) 885-4103 |
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Citi |
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(212) 816-1116 |
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(646) 562-1355 |
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Credit Suisse |
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(212) 538-1727 |
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(949) 640-8780 |
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Jefferies |
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(212) 284-1705 |
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J.P. Morgan |
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(212) 622-6708 |
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(917) 368-2280 |
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(212) 519-0025 |
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Morgan Stanley |
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(212) 761-6432 |
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(415) 633-8589 |
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Frank G. Louthan IV |
(404) 442-5867 |
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Stifel |
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(212) 271-3461 |
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(212) 303-4169 |
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(212) 713-4226 |
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Wells Fargo |
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(312) 630-2386 |
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(617) 235-7513 |
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Summary of Financial Data |
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(Dollars in millions, except per share amounts) |
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Three Months |
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Growth % |
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2020 |
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2019 |
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2019 |
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Yr/Yr |
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Revenue |
$ |
245.9 |
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$ |
253.9 |
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$ |
225.0 |
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9 |
% |
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Net operating income |
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153.3 |
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160.1 |
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141.7 |
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8 |
% |
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Net income (loss) |
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14.7 |
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(52.1 |
) |
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89.4 |
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(84 |
)% |
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Funds from Operations ("FFO") - Nareit defined |
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120.4 |
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53.6 |
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189.5 |
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(36 |
)% |
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Normalized Funds from Operations ("Normalized FFO") |
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111.8 |
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113.7 |
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89.3 |
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25 |
% |
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Weighted average number of common shares outstanding - diluted for Normalized FFO |
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115.1 |
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114.4 |
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108.8 |
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6 |
% |
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Income (loss) per share - basic |
$ |
0.13 |
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$ |
(0.46 |
) |
$ |
0.82 |
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(84 |
)% |
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Income (loss) per share - diluted |
$ |
0.13 |
|
$ |
(0.46 |
) |
$ |
0.82 |
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(84 |
)% |
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Normalized FFO per diluted common share |
$ |
0.97 |
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$ |
0.99 |
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$ |
0.82 |
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18 |
% |
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Adjusted EBITDA |
$ |
132.2 |
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$ |
137.9 |
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$ |
119.2 |
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11 |
% |
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Adjusted EBITDA as a % of Revenue |
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53.8 |
% |
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54.3 |
% |
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53.0 |
% |
0.8 pts |
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As of |
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Growth % |
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2020 |
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2019 |
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2019 |
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Yr/Yr |
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Balance Sheet Data |
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Gross investment in real estate |
$ |
6,260.9 |
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$ |
6,089.5 |
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$ |
5,508.8 |
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14 |
% |
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Accumulated depreciation |
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(1,469.5 |
) |
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(1,379.2 |
) |
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(1,122.5 |
) |
31 |
% |
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Total investment in real estate, net |
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4,791.4 |
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4,710.3 |
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4,386.3 |
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9 |
% |
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Cash and cash equivalents |
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57.3 |
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76.4 |
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126.0 |
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(55 |
)% |
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Market value of common equity |
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7,102.1 |
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7,511.9 |
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5,785.0 |
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23 |
% |
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Long-term debt |
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3,084.0 |
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2,915.0 |
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2,915.8 |
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6 |
% |
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Net debt |
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3,056.1 |
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2,870.4 |
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2,823.2 |
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8 |
% |
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Total enterprise value |
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10,158.2 |
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10,382.3 |
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8,608.2 |
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18 |
% |
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Net debt to LQA Adjusted EBITDA(a) |
5.4x |
5.0x |
5.2x |
0.2x |
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Dividend Activity |
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Dividends per share |
$ |
0.50 |
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$ |
0.50 |
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$ |
0.46 |
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9 |
% |
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Portfolio Statistics |
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Data centers |
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48 |
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47 |
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48 |
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- |
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Stabilized CSF (000) |
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4,035 |
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3,937 |
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3,721 |
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8 |
% |
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Stabilized CSF % leased |
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88 |
% |
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88 |
% |
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90 |
% |
(2) pts |
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Total CSF (000) |
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4,215 |
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4,165 |
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4,061 |
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4 |
% |
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Total CSF % leased |
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86 |
% |
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85 |
% |
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86 |
% |
0 pts |
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Total GSF (000) |
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7,243 |
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7,135 |
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7,004 |
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3 |
% |
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(a) |
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Condensed Consolidated Statements of Operations |
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(Dollars in millions, except per share amounts) |
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(Unaudited) |
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Three Months |
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Ended |
Change |
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2020 |
2019 |
$ |
% |
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Revenue(a) |
$ |
245.9 |
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$ |
225.0 |
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$ |
20.9 |
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9 |
% |
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Operating expenses: |
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Property operating expenses |
92.6 |
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83.3 |
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9.3 |
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11 |
% |
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Sales and marketing |
4.7 |
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5.3 |
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(0.6 |
) |
(11 |
)% |
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General and administrative |
26.9 |
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22.2 |
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4.7 |
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21 |
% |
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Depreciation and amortization |
108.1 |
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102.1 |
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6.0 |
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6 |
% |
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Transaction, acquisition, integration and other related expenses |
0.4 |
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0.3 |
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0.1 |
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33 |
% |
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Total operating expenses |
232.7 |
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213.2 |
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19.5 |
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9 |
% |
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Operating income |
13.2 |
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11.8 |
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1.4 |
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12 |
% |
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Interest expense, net |
(16.0 |
) |
(23.7 |
) |
7.7 |
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(32 |
)% |
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Gain on marketable equity investment |
14.7 |
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101.2 |
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(86.5 |
) |
(85 |
)% |
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Loss on early extinguishment of debt |
(3.4 |
) |
— |
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(3.4 |
) |
n/m |
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Foreign currency and derivative gains, net |
5.1 |
|
— |
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5.1 |
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n/m |
||||||
Other expense |
(0.1 |
) |
(0.1 |
) |
— |
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n/m |
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Net income before income taxes |
13.5 |
|
89.2 |
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(75.7 |
) |
(85 |
)% |
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Income tax benefit |
1.2 |
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0.2 |
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1.0 |
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n/m |
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Net income |
$ |
14.7 |
|
$ |
89.4 |
|
$ |
(74.7 |
) |
(84 |
)% |
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Income per share - basic |
$ |
0.13 |
|
$ |
0.82 |
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$ |
(0.69 |
) |
(84 |
)% |
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Income per share - diluted |
$ |
0.13 |
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$ |
0.82 |
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$ |
(0.69 |
) |
(84 |
)% |
(a) |
Revenue includes metered power reimbursements of |
Condensed Consolidated Balance Sheets (Dollars in millions) (Unaudited) |
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Change |
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2020 |
2019 |
$ |
% |
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Assets |
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Investment in real estate: |
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Land |
$ |
172.2 |
|
$ |
147.6 |
|
$ |
24.6 |
|
17 |
% |
Buildings and improvements |
1,786.3 |
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1,761.4 |
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24.9 |
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1 |
% |
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Equipment |
3,106.4 |
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3,028.2 |
|
78.2 |
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3 |
% |
|||
Gross operating real estate |
5,064.9 |
|
4,937.2 |
|
127.7 |
|
3 |
% |
|||
Less accumulated depreciation |
(1,469.5 |
) |
(1,379.2 |
) |
(90.3 |
) |
7 |
% |
|||
Net operating real estate |
3,595.4 |
|
3,558.0 |
|
37.4 |
|
1 |
% |
|||
Construction in progress, including land under development |
990.6 |
|
946.3 |
|
44.3 |
|
5 |
% |
|||
Land held for future development |
205.4 |
|
206.0 |
|
(0.6 |
) |
— |
% |
|||
Total investment in real estate, net |
4,791.4 |
|
4,710.3 |
|
81.1 |
|
2 |
% |
|||
Cash and cash equivalents |
57.3 |
|
76.4 |
|
(19.1 |
) |
(25 |
)% |
|||
Rent and other receivables, net |
305.3 |
|
291.9 |
|
13.4 |
|
5 |
% |
|||
Restricted cash |
1.3 |
|
1.3 |
|
— |
|
n/m |
||||
Operating lease right-of-use assets, net |
208.6 |
|
161.9 |
|
46.7 |
|
29 |
% |
|||
Equity investments |
153.1 |
|
135.1 |
|
18.0 |
|
13 |
% |
|||
|
455.1 |
|
455.1 |
|
— |
|
n/m |
||||
Intangible assets, net |
184.5 |
|
196.1 |
|
(11.6 |
) |
(6 |
)% |
|||
Other assets |
121.9 |
|
113.9 |
|
8.0 |
|
7 |
% |
|||
Total assets |
$ |
6,278.5 |
|
$ |
6,142.0 |
|
$ |
136.5 |
|
2 |
% |
Liabilities and equity |
|
|
|
|
|||||||
Debt |
$ |
3,047.0 |
|
$ |
2,886.6 |
|
$ |
160.4 |
|
6 |
% |
Finance lease liabilities |
29.4 |
|
31.8 |
|
(2.4 |
) |
(8 |
)% |
|||
Operating lease liabilities |
243.0 |
|
195.8 |
|
47.2 |
|
24 |
% |
|||
Construction costs payable |
183.4 |
|
176.3 |
|
7.1 |
|
4 |
% |
|||
Accounts payable and accrued expenses |
121.0 |
|
122.7 |
|
(1.7 |
) |
(1 |
)% |
|||
Dividends payable |
58.7 |
|
58.6 |
|
0.1 |
|
— |
% |
|||
Deferred revenue and prepaid rents |
167.3 |
|
163.7 |
|
3.6 |
|
2 |
% |
|||
Deferred tax liability |
57.0 |
|
60.5 |
|
(3.5 |
) |
(6 |
)% |
|||
Other liabilities |
7.9 |
|
11.4 |
|
(3.5 |
) |
(31 |
)% |
|||
Total liabilities |
3,914.7 |
|
3,707.4 |
|
207.3 |
|
6 |
% |
|||
Stockholders' equity |
|
|
|
|
|||||||
Preferred stock, |
— |
|
— |
|
— |
|
n/m |
||||
Common stock, |
1.2 |
|
1.1 |
|
0.1 |
|
9.1 |
% |
|||
Additional paid in capital |
3,199.9 |
|
3,202.0 |
|
(2.1 |
) |
— |
% |
|||
Accumulated deficit |
(811.0 |
) |
(767.3 |
) |
(43.7 |
) |
6 |
% |
|||
Accumulated other comprehensive loss |
(26.3 |
) |
(1.2 |
) |
(25.1 |
) |
n/m |
||||
Total stockholders’ equity |
2,363.8 |
|
2,434.6 |
|
(70.8 |
) |
(3 |
)% |
|||
Total liabilities and equity |
$ |
6,278.5 |
|
$ |
6,142.0 |
|
$ |
136.5 |
|
2 |
% |
Condensed Consolidated Statements of Operations |
|||||||||||||||
(Dollars in millions, except per share amounts) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
For the three months ended: |
|
|
|
|
|
||||||||||
|
2020 |
2019 |
2019 |
2019 |
2019 |
||||||||||
Revenue(a) |
$ |
245.9 |
|
$ |
253.9 |
|
$ |
250.9 |
|
$ |
251.5 |
|
$ |
225.0 |
|
Operating expenses: |
|
|
|
|
|
||||||||||
Property operating expenses |
92.6 |
|
93.8 |
|
103.0 |
|
103.3 |
|
83.3 |
|
|||||
Sales and marketing |
4.7 |
|
4.5 |
|
5.1 |
|
5.3 |
|
5.3 |
|
|||||
General and administrative |
26.9 |
|
21.8 |
|
19.8 |
|
19.7 |
|
22.2 |
|
|||||
Depreciation and amortization |
108.1 |
|
108.1 |
|
105.4 |
|
102.1 |
|
102.1 |
|
|||||
Transaction, acquisition, integration and other related expenses |
0.4 |
|
2.7 |
|
4.4 |
|
1.4 |
|
0.3 |
|
|||||
Impairment losses |
— |
|
0.7 |
|
— |
|
— |
|
— |
|
|||||
Total operating expenses |
232.7 |
|
231.6 |
|
237.7 |
|
231.8 |
|
213.2 |
|
|||||
Operating income |
13.2 |
|
22.3 |
|
13.2 |
|
19.7 |
|
11.8 |
|
|||||
Interest expense, net |
(16.0 |
) |
(17.6 |
) |
(19.6 |
) |
(21.1 |
) |
(23.7 |
) |
|||||
Gain (loss) on marketable equity investment |
14.7 |
|
27.2 |
|
12.4 |
|
(8.5 |
) |
101.2 |
|
|||||
Loss on early extinguishment of debt |
(3.4 |
) |
(71.8 |
) |
— |
|
— |
|
— |
|
|||||
Foreign currency and derivative gains (losses), net |
5.1 |
|
(13.0 |
) |
5.5 |
|
— |
|
— |
|
|||||
Other (expense) income |
(0.1 |
) |
0.7 |
|
(0.9 |
) |
— |
|
(0.1 |
) |
|||||
Net income (loss) before income taxes |
13.5 |
|
(52.2 |
) |
10.6 |
|
(9.9 |
) |
89.2 |
|
|||||
Income tax benefit |
1.2 |
|
0.1 |
|
2.0 |
|
1.4 |
|
0.2 |
|
|||||
Net income (loss) |
$ |
14.7 |
|
$ |
(52.1 |
) |
$ |
12.6 |
|
$ |
(8.5 |
) |
$ |
89.4 |
|
Income (loss) per share - basic |
$ |
0.13 |
|
$ |
(0.46 |
) |
$ |
0.11 |
|
$ |
(0.08 |
) |
$ |
0.82 |
|
Income (loss) per share - diluted |
$ |
0.13 |
|
$ |
(0.46 |
) |
$ |
0.11 |
|
$ |
(0.08 |
) |
$ |
0.82 |
|
(a) |
Revenue includes metered power reimbursements of |
|
|||||||||||||||
Condensed Consolidated Balance Sheets |
|||||||||||||||
(Dollars in millions) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|||||||||||||||
|
|
|
|
|
|
||||||||||
|
2020 |
2019 |
2019 |
2019 |
2019 |
||||||||||
Assets |
|
|
|
|
|
||||||||||
Investment in real estate: |
|
|
|
|
|
||||||||||
Land |
$ |
172.2 |
|
$ |
147.6 |
|
$ |
147.3 |
|
$ |
148.0 |
|
$ |
124.9 |
|
Buildings and improvements |
1,786.3 |
|
1,761.4 |
|
1,732.0 |
|
1,689.7 |
|
1,649.2 |
|
|||||
Equipment |
3,106.4 |
|
3,028.2 |
|
2,950.3 |
|
2,869.7 |
|
2,799.6 |
|
|||||
Gross operating real estate |
5,064.9 |
|
4,937.2 |
|
4,829.6 |
|
4,707.4 |
|
4,573.7 |
|
|||||
Less accumulated depreciation |
(1,469.5 |
) |
(1,379.2 |
) |
(1,292.7 |
) |
(1,207.4 |
) |
(1,122.5 |
) |
|||||
Net operating real estate |
3,595.4 |
|
3,558.0 |
|
3,536.9 |
|
3,500.0 |
|
3,451.2 |
|
|||||
Construction in progress, including land under development |
990.6 |
|
946.3 |
|
836.9 |
|
799.2 |
|
734.7 |
|
|||||
Land held for future development |
205.4 |
|
206.0 |
|
204.3 |
|
200.4 |
|
200.4 |
|
|||||
Total investment in real estate, net |
4,791.4 |
|
4,710.3 |
|
4,578.1 |
|
4,499.6 |
|
4,386.3 |
|
|||||
Cash and cash equivalents |
57.3 |
|
76.4 |
|
51.7 |
|
144.1 |
|
126.0 |
|
|||||
Rent and other receivables, net |
305.3 |
|
291.9 |
|
279.3 |
|
268.4 |
|
248.7 |
|
|||||
Restricted cash |
1.3 |
|
1.3 |
|
1.3 |
|
1.3 |
|
1.3 |
|
|||||
Operating lease right-of-use assets, net |
208.6 |
|
161.9 |
|
90.7 |
|
78.5 |
|
83.8 |
|
|||||
Equity investments |
153.1 |
|
135.1 |
|
104.3 |
|
91.9 |
|
299.3 |
|
|||||
|
455.1 |
|
455.1 |
|
455.1 |
|
455.1 |
|
455.1 |
|
|||||
Intangible assets, net |
184.5 |
|
196.1 |
|
203.7 |
|
215.3 |
|
226.1 |
|
|||||
Other assets |
121.9 |
|
113.9 |
|
128.7 |
|
115.5 |
|
114.8 |
|
|||||
Total assets |
$ |
6,278.5 |
|
$ |
6,142.0 |
|
$ |
5,892.9 |
|
$ |
5,869.7 |
|
$ |
5,941.4 |
|
Liabilities and equity |
|
|
|
|
|
||||||||||
Debt |
$ |
3,047.0 |
|
$ |
2,886.6 |
|
$ |
2,776.1 |
|
$ |
2,713.8 |
|
$ |
2,898.6 |
|
Finance lease liabilities |
29.4 |
|
31.8 |
|
30.7 |
|
31.6 |
|
33.4 |
|
|||||
Operating lease liabilities |
243.0 |
|
195.8 |
|
124.3 |
|
114.1 |
|
119.6 |
|
|||||
Construction costs payable |
183.4 |
|
176.3 |
|
131.2 |
|
149.5 |
|
155.5 |
|
|||||
Accounts payable and accrued expenses |
121.0 |
|
122.7 |
|
132.4 |
|
112.8 |
|
81.6 |
|
|||||
Dividends payable |
58.7 |
|
58.6 |
|
57.7 |
|
53.0 |
|
51.5 |
|
|||||
Deferred revenue and prepaid rents |
167.3 |
|
163.7 |
|
164.0 |
|
166.8 |
|
155.9 |
|
|||||
Deferred tax liability |
57.0 |
|
60.5 |
|
59.6 |
|
65.5 |
|
67.2 |
|
|||||
Other liabilities |
7.9 |
|
11.4 |
|
— |
|
— |
|
— |
|
|||||
Total liabilities |
3,914.7 |
|
3,707.4 |
|
3,476.0 |
|
3,407.1 |
|
3,563.3 |
|
|||||
Stockholders' equity |
|
|
|
|
|
||||||||||
Preferred stock, |
— |
|
— |
|
— |
|
— |
|
— |
|
|||||
Common stock, |
1.2 |
|
1.1 |
|
1.1 |
|
1.1 |
|
1.1 |
|
|||||
Additional paid in capital |
3,199.9 |
|
3,202.0 |
|
3,094.2 |
|
3,089.5 |
|
2,938.2 |
|
|||||
Accumulated deficit |
(811.0 |
) |
(767.3 |
) |
(657.4 |
) |
(613.0 |
) |
(552.2 |
) |
|||||
Accumulated other comprehensive loss |
(26.3 |
) |
(1.2 |
) |
(21.0 |
) |
(15.0 |
) |
(9.0 |
) |
|||||
Total stockholders' equity |
2,363.8 |
|
2,434.6 |
|
2,416.9 |
|
2,462.6 |
|
2,378.1 |
|
|||||
Total liabilities and equity |
$ |
6,278.5 |
|
$ |
6,142.0 |
|
$ |
5,892.9 |
|
$ |
5,869.7 |
|
$ |
5,941.4 |
|
|
||||||
Condensed Consolidated Statements of Cash Flow |
||||||
(Dollars in millions) |
||||||
(Unaudited) |
||||||
|
Three Months |
Three Months |
||||
Cash flows from operating activities: |
|
|
||||
Net income |
$ |
14.7 |
|
$ |
89.4 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
||||
Depreciation and amortization |
108.1 |
|
102.1 |
|
||
Provision for bad debt expense |
(0.1 |
) |
— |
|
||
Unrealized gain on marketable equity investment |
(14.7 |
) |
(101.2 |
) |
||
Foreign currency and derivative gains, net |
(5.1 |
) |
— |
|
||
Proceeds from swap terminations |
2.9 |
|
— |
|
||
Loss on early extinguishment of debt |
3.4 |
|
— |
|
||
Interest expense amortization, net |
2.0 |
|
1.2 |
|
||
Stock-based compensation expense |
3.7 |
|
4.5 |
|
||
Deferred income tax benefit |
(2.0 |
) |
(0.8 |
) |
||
Operating lease cost |
6.2 |
|
5.0 |
|
||
Other income (expense) |
0.2 |
|
(0.5 |
) |
||
|
|
|
||||
Change in operating assets and liabilities: |
|
|
||||
Rent and other receivables, net and other assets |
(29.4 |
) |
(18.0 |
) |
||
Accounts payable and accrued expenses |
(1.2 |
) |
(39.8 |
) |
||
Deferred revenue and prepaid rents |
3.2 |
|
7.1 |
|
||
Operating lease liabilities |
(5.6 |
) |
(5.1 |
) |
||
Net cash provided by operating activities |
86.3 |
|
43.9 |
|
||
Cash flows from investing activities: |
|
|
||||
Investment in real estate |
(196.5 |
) |
(301.9 |
) |
||
Equity investments |
(3.3 |
) |
— |
|
||
Net cash used in investing activities |
(199.8 |
) |
(301.9 |
) |
||
Cash flows from financing activities: |
|
|
||||
Issuance of common stock, net |
0.6 |
|
105.0 |
|
||
Dividends paid |
(58.4 |
) |
(50.4 |
) |
||
Payment of deferred financing costs |
(13.6 |
) |
— |
|
||
Proceeds from revolving credit facility |
244.4 |
|
275.7 |
|
||
Repayments of revolving credit facility |
(623.1 |
) |
— |
|
||
Proceeds from Euro bond |
550.6 |
|
— |
|
||
Proceeds from unsecured term loan |
1,100.0 |
|
— |
|
||
Repayments of unsecured term loan |
(1,100.0 |
) |
— |
|
||
Payments on finance lease liabilities |
(0.7 |
) |
(0.6 |
) |
||
Tax payment upon exercise of equity awards |
(6.3 |
) |
(8.7 |
) |
||
Net cash provided by financing activities |
93.5 |
|
321.0 |
|
||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
0.9 |
|
(0.1 |
) |
||
Net decrease in cash, cash equivalents and restricted cash |
(19.1 |
) |
62.9 |
|
||
Cash, cash equivalents and restricted cash at beginning of period |
77.7 |
|
64.4 |
|
||
Cash, cash equivalents and restricted cash at end of period |
$ |
58.6 |
|
$ |
127.3 |
|
|
|
|
||||
Supplemental disclosure of cash flow information: |
|
|
||||
Cash paid for interest, including amounts capitalized of |
$ |
8.3 |
|
$ |
46.7 |
|
Non-cash investing and financing activities: |
|
|
||||
Construction costs payable |
183.4 |
|
155.5 |
|
||
Dividends payable |
58.7 |
|
51.5 |
|
|
|||||||||||
Reconciliation of Net Income (Loss) to Net Operating Income |
|||||||||||
(Dollars in millions) |
|||||||||||
(Unaudited) |
|||||||||||
|
Three Months Ended |
|
|
||||||||
|
|
Change |
|||||||||
2020 |
2019 |
$ |
% |
||||||||
Net income |
$ |
14.7 |
|
$ |
89.4 |
|
$ |
(74.7 |
) |
(84 |
)% |
Sales and marketing expenses |
4.7 |
|
5.3 |
|
(0.6 |
) |
(11 |
)% |
|||
General and administrative expenses |
26.9 |
|
22.2 |
|
4.7 |
|
21 |
% |
|||
Depreciation and amortization expenses |
108.1 |
|
102.1 |
|
6.0 |
|
6 |
% |
|||
Transaction, acquisition, integration and other related expenses |
0.4 |
|
0.3 |
|
0.1 |
|
33 |
% |
|||
Interest expense, net |
16.0 |
|
23.7 |
|
(7.7 |
) |
(32 |
)% |
|||
Gain on marketable equity investment |
(14.7 |
) |
(101.2 |
) |
86.5 |
|
(85 |
)% |
|||
Loss on early extinguishment of debt |
3.4 |
|
— |
|
3.4 |
|
n/m |
||||
Foreign currency and derivative gains, net |
(5.1 |
) |
— |
|
(5.1 |
) |
n/m |
||||
Other expense |
0.1 |
|
0.1 |
|
— |
|
n/m |
||||
Income tax benefit |
(1.2 |
) |
(0.2 |
) |
(1.0 |
) |
n/m |
||||
Net Operating Income |
$ |
153.3 |
|
$ |
141.7 |
|
$ |
11.6 |
|
8 |
% |
|
|||||||||||||||||||||||||
Net Operating Income and Reconciliation of Net Income (Loss) to Adjusted EBITDA |
|||||||||||||||||||||||||
(Dollars in millions) |
|||||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||||
|
Three Months Ended |
|
|
Three Months Ended |
|||||||||||||||||||||
|
|
Change |
|
|
|
|
|
||||||||||||||||||
|
2020 |
2019 |
$ |
% |
2020 |
2019 |
2019 |
2019 |
2019 |
||||||||||||||||
Net Operating Income |
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenue |
$ |
245.9 |
|
$ |
225.0 |
|
$ |
20.9 |
|
9% |
$ |
245.9 |
|
$ |
253.9 |
|
$ |
250.9 |
|
$ |
251.5 |
|
$ |
225.0 |
|
Property operating expenses |
92.6 |
|
83.3 |
|
9.3 |
|
11% |
92.6 |
|
93.8 |
|
103.0 |
|
103.3 |
|
83.3 |
|
||||||||
Net Operating Income (NOI) |
$ |
153.3 |
|
$ |
141.7 |
|
$ |
11.6 |
|
8% |
$ |
153.3 |
|
$ |
160.1 |
|
$ |
147.9 |
|
$ |
148.2 |
|
$ |
141.7 |
|
NOI as a % of Revenue |
62.3 |
% |
63.0 |
% |
|
|
62.3 |
% |
63.1 |
% |
58.9 |
% |
58.9 |
% |
63.0 |
% |
|||||||||
Reconciliation of Net Income (Loss) to Adjusted |
|
|
|
|
|
|
|
|
|
||||||||||||||||
EBITDA: |
|||||||||||||||||||||||||
Net income (loss) |
$ |
14.7 |
|
$ |
89.4 |
|
$ |
(74.7 |
) |
(84)% |
$ |
14.7 |
|
$ |
(52.1 |
) |
$ |
12.6 |
|
$ |
(8.5 |
) |
$ |
89.4 |
|
Interest expense, net |
16.0 |
|
23.7 |
|
(7.7 |
) |
(32)% |
16.0 |
|
17.6 |
|
19.6 |
|
21.1 |
|
23.7 |
|
||||||||
Income tax benefit |
(1.2 |
) |
(0.2 |
) |
(1.0 |
) |
n/m |
(1.2 |
) |
(0.1 |
) |
(2.0 |
) |
(1.4 |
) |
(0.2 |
) |
||||||||
Depreciation and amortization expenses |
108.1 |
|
102.1 |
|
6.0 |
|
6% |
108.1 |
|
108.1 |
|
105.4 |
|
102.1 |
|
102.1 |
|
||||||||
Impairment losses |
— |
|
— |
|
— |
|
n/m |
— |
|
0.7 |
|
— |
|
— |
|
— |
|
||||||||
EBITDA (Nareit definition)(a) |
$ |
137.6 |
|
$ |
215.0 |
|
$ |
(77.4 |
) |
(36)% |
$ |
137.6 |
|
$ |
74.2 |
|
$ |
135.6 |
|
$ |
113.3 |
|
$ |
215.0 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Transaction, acquisition, integration and other related expenses |
0.4 |
|
0.3 |
|
0.1 |
|
33% |
0.4 |
|
2.7 |
|
4.4 |
|
1.4 |
|
0.3 |
|
||||||||
Legal claim costs |
0.1 |
|
0.1 |
|
— |
|
n/m |
0.1 |
|
0.5 |
|
0.4 |
|
0.1 |
|
0.1 |
|
||||||||
Stock-based compensation expense |
3.5 |
|
4.5 |
|
(1.0 |
) |
(22)% |
3.5 |
|
4.3 |
|
4.2 |
|
3.7 |
|
4.5 |
|
||||||||
Cash severance and management transition costs |
6.8 |
|
0.1 |
|
6.7 |
|
n/m |
6.8 |
|
(0.7 |
) |
— |
|
— |
|
0.1 |
|
||||||||
Severance-related stock compensation costs |
0.1 |
|
— |
|
0.1 |
|
n/m |
0.1 |
|
— |
|
— |
|
— |
|
— |
|
||||||||
Loss on early extinguishment of debt |
3.4 |
|
— |
|
3.4 |
|
n/m |
3.4 |
|
71.8 |
|
— |
|
— |
|
— |
|
||||||||
New accounting standards and regulatory compliance and the related system implementation costs |
— |
|
0.3 |
|
(0.3 |
) |
n/m |
— |
|
— |
|
0.2 |
|
0.3 |
|
0.3 |
|
||||||||
(Gain) loss on marketable equity investment |
(14.7 |
) |
(101.2 |
) |
86.5 |
|
(85)% |
(14.7 |
) |
(27.2 |
) |
(12.4 |
) |
8.5 |
|
(101.2 |
) |
||||||||
Foreign currency and derivative (gains) losses, net |
(5.1 |
) |
— |
|
(5.1 |
) |
n/m |
(5.1 |
) |
13.0 |
|
(5.5 |
) |
— |
|
— |
|
||||||||
Other expense (income) |
0.1 |
|
0.1 |
|
— |
|
n/m |
0.1 |
|
(0.7 |
) |
0.9 |
|
— |
|
0.1 |
|
||||||||
Adjusted EBITDA |
$ |
132.2 |
|
$ |
119.2 |
|
$ |
13.0 |
|
11% |
$ |
132.2 |
|
$ |
137.9 |
|
$ |
127.8 |
|
$ |
127.3 |
|
$ |
119.2 |
|
Adjusted EBITDA as a % of Revenue |
53.8 |
% |
53.0 |
% |
|
|
53.8 |
% |
54.3 |
% |
50.9 |
% |
50.6 |
% |
53.0 |
% |
(a) |
We calculate Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre) as GAAP Net income (loss) plus Interest expense, net, Income tax benefit, Depreciation and amortization and Impairment losses. While it is consistent with the definition of EBITDAre promulgated by the |
|
||||||||||||||||||||||||||
Reconciliation of Net Income (Loss) to FFO and Normalized FFO |
||||||||||||||||||||||||||
(Dollars in millions) |
||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||
|
Three Months Ended |
|
|
Three Months Ended |
||||||||||||||||||||||
|
|
Change |
|
|
|
|
|
|||||||||||||||||||
2020 |
2019 |
$ |
% |
2020 |
2019 |
2019 |
2019 |
2019 |
||||||||||||||||||
Reconciliation of Net Income (Loss) to FFO and Normalized FFO: |
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income (loss) |
$ |
14.7 |
|
$ |
89.4 |
|
$ |
(74.7 |
) |
(84 |
)% |
$ |
14.7 |
|
$ |
(52.1 |
) |
$ |
12.6 |
|
$ |
(8.5 |
) |
$ |
89.4 |
|
Real estate depreciation and amortization |
105.8 |
|
100.1 |
|
5.7 |
|
6 |
% |
105.8 |
|
105.6 |
|
102.6 |
|
100.2 |
|
100.1 |
|
||||||||
Impairment losses and gain on disposal of assets |
(0.1 |
) |
— |
|
(0.1 |
) |
n/m |
(0.1 |
) |
0.1 |
|
1.0 |
|
— |
|
— |
|
|||||||||
Funds from Operations ("FFO") - Nareit defined |
$ |
120.4 |
|
$ |
189.5 |
|
$ |
(69.1 |
) |
(36 |
)% |
$ |
120.4 |
|
$ |
53.6 |
|
$ |
116.2 |
|
$ |
91.7 |
|
$ |
189.5 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Loss on early extinguishment of debt |
3.4 |
|
— |
|
3.4 |
|
n/m |
3.4 |
|
71.8 |
|
— |
|
— |
|
— |
|
|||||||||
(Gain) loss on marketable equity investment |
(14.7 |
) |
(101.2 |
) |
86.5 |
|
(85 |
)% |
(14.7 |
) |
(27.2 |
) |
(12.4 |
) |
8.5 |
|
(101.2 |
) |
||||||||
Foreign currency and derivative (gains) losses, net |
(5.1 |
) |
— |
|
(5.1 |
) |
n/m |
(5.1 |
) |
13.0 |
|
(5.5 |
) |
— |
|
— |
|
|||||||||
New accounting standards and regulatory compliance and the related system implementation costs |
— |
|
0.3 |
|
(0.3 |
) |
n/m |
— |
|
— |
|
0.2 |
|
0.3 |
|
0.3 |
|
|||||||||
Amortization of tradenames |
0.3 |
|
0.2 |
|
0.1 |
|
50 |
% |
0.3 |
|
0.4 |
|
0.6 |
|
0.1 |
|
0.2 |
|
||||||||
Transaction, acquisition, integration and other related expenses |
0.5 |
|
0.3 |
|
0.2 |
|
67 |
% |
0.5 |
|
2.3 |
|
4.4 |
|
1.4 |
|
0.3 |
|
||||||||
Cash severance and management transition costs |
6.8 |
|
0.1 |
|
6.7 |
|
n/m |
6.8 |
|
(0.7 |
) |
— |
|
— |
|
0.1 |
|
|||||||||
Severance-related stock compensation costs |
0.1 |
|
— |
|
0.1 |
|
n/m |
0.1 |
|
— |
|
— |
|
— |
|
— |
|
|||||||||
Legal claim costs |
0.1 |
|
0.1 |
|
— |
|
n/m |
0.1 |
|
0.5 |
|
0.4 |
|
0.1 |
|
0.1 |
|
|||||||||
Normalized Funds from Operations (Normalized FFO) |
$ |
111.8 |
|
$ |
89.3 |
|
$ |
22.5 |
|
25 |
% |
$ |
111.8 |
|
$ |
113.7 |
|
$ |
103.9 |
|
$ |
102.1 |
|
$ |
89.3 |
|
Normalized FFO per diluted common share |
$ |
0.97 |
|
$ |
0.82 |
|
$ |
0.15 |
|
18 |
% |
$ |
0.97 |
|
$ |
0.99 |
|
$ |
0.91 |
|
$ |
0.90 |
|
$ |
0.82 |
|
Weighted average diluted common shares outstanding |
115.1 |
|
108.8 |
|
6.3 |
|
6 |
% |
115.1 |
|
114.4 |
|
113.5 |
|
113.1 |
|
108.8 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Additional Information: |
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Amortization of deferred financing costs and bond premium / discount |
2.0 |
|
1.2 |
|
0.8 |
|
67 |
% |
2.0 |
|
1.4 |
|
1.2 |
|
1.2 |
|
1.2 |
|
||||||||
Stock-based compensation expense |
3.5 |
|
4.5 |
|
(1.0 |
) |
(22 |
)% |
3.5 |
|
4.3 |
|
4.2 |
|
3.7 |
|
4.5 |
|
||||||||
Non-real estate depreciation and amortization |
2.0 |
|
1.9 |
|
0.1 |
|
5 |
% |
2.0 |
|
2.1 |
|
2.0 |
|
1.9 |
|
1.9 |
|
||||||||
Straight line rent adjustments(a) |
1.7 |
|
(10.1 |
) |
11.8 |
|
n/m |
1.7 |
|
(3.8 |
) |
(5.9 |
) |
(6.8 |
) |
(10.1 |
) |
|||||||||
Deferred revenue, primarily installation revenue(b) |
(2.2 |
) |
5.9 |
|
(8.1 |
) |
n/m |
(2.2 |
) |
(2.3 |
) |
(1.7 |
) |
4.7 |
|
5.9 |
|
|||||||||
Leasing commissions |
(2.4 |
) |
(3.7 |
) |
1.3 |
|
(35 |
)% |
(2.4 |
) |
(4.8 |
) |
(2.8 |
) |
(3.1 |
) |
(3.7 |
) |
||||||||
Recurring capital expenditures |
(3.5 |
) |
(2.7 |
) |
(0.8 |
) |
30 |
% |
(3.5 |
) |
(1.1 |
) |
(4.5 |
) |
(1.6 |
) |
(2.7 |
) |
(a) |
Straight line rent adjustments: |
|
Represents the difference between revenue recognized on a straight line basis under GAAP over the term of the lease compared to the contractual rental payments. Lease agreements typically include payments that escalate over the term of the contract or, to a lesser extent, a ramp period. |
||
|
||
(b) |
Deferred revenue, primarily installation revenue: |
|
Represents payments received from customers in excess of revenue recognized under GAAP. This primarily relates to specific customer-requested buildouts that |
|
||||||||
Market Capitalization Summary, Reconciliation of Net Debt and Interest Summary |
||||||||
(Unaudited) |
||||||||
Market Capitalization (as of |
||||||||
(dollars in millions) |
Shares or Equivalents Outstanding |
Market Price as of |
Market Value Equivalents (in millions) |
|||||
Common shares |
115,014,251 |
|
$ |
61.75 |
|
$ |
7,102.1 |
|
Net Debt |
|
|
3,056.1 |
|
||||
Total Enterprise Value (TEV) |
|
|
$ |
10,158.2 |
|
Reconciliation of Net Debt |
|||||||||
|
|
|
|
||||||
(dollars in millions) |
2020 |
2019 |
2019 |
||||||
Long-term debt(a) |
$ |
3,084.0 |
|
$ |
2,915.0 |
|
$ |
2,915.8 |
|
Finance lease liabilities |
29.4 |
|
31.8 |
|
33.4 |
|
|||
Less: |
|
|
|
||||||
Cash and cash equivalents |
(57.3 |
) |
(76.4 |
) |
(126.0 |
) |
|||
Net Debt |
$ |
3,056.1 |
|
$ |
2,870.4 |
|
$ |
2,823.2 |
|
Interest Summary |
|||||||||||
|
Three Months Ended |
|
|||||||||
|
|
|
|
% Change |
|||||||
(dollars in millions) |
2020 |
2019 |
2019 |
Yr/Yr |
|||||||
Interest expense and fees |
$ |
20.0 |
|
$ |
22.9 |
|
$ |
31.8 |
|
(37 |
)% |
Amortization of deferred financing costs and bond premium / discount |
2.0 |
|
1.4 |
|
1.2 |
|
67 |
% |
|||
Capitalized interest |
(6.0 |
) |
(6.7 |
) |
(9.3 |
) |
(35 |
)% |
|||
Total interest expense |
$ |
16.0 |
|
$ |
17.6 |
|
$ |
23.7 |
|
(32 |
)% |
|
|||||
Debt Schedule and Debt Covenants |
|||||
(Unaudited) |
|||||
Debt Schedule (as of |
|||||
(dollars in millions) |
|
|
|
||
Long-term debt: |
Amount |
Interest Rate |
Maturity Date |
||
Revolving credit facility - GBP(a)(b) |
31.0 |
|
GBP LIBOR + 100 bps(d) |
|
|
Revolving credit facility - USD(a) |
203.0 |
|
USD LIBOR + 100 bps(e) |
|
|
Term loan(f) |
1,100.0 |
|
USD LIBOR + 120 bps(g) |
|
|
2.900% USD senior notes due 2024 |
600.0 |
|
2.900% |
|
|
1.450% EUR senior notes due 2027(i) |
550.0 |
|
1.450% |
|
|
3.450% USD senior notes due 2029 |
600.0 |
|
3.450% |
|
|
Total long-term debt(j) |
$ |
3,084.0 |
|
2.22%(k) |
|
|
|
|
|
||
Weighted average term of debt: |
6.2 |
|
years |
|
(a) |
Revolving credit facility includes 0.20% facility fee on entire revolving credit facility commitment of |
|||||
(b) |
Amount outstanding is USD equivalent of £25 million. |
|||||
(c) |
Assuming exercise of 12-month extension option. |
|||||
(d) |
Interest rate as of |
|||||
(e) |
Interest rate as of |
|||||
(f) |
|
|||||
(g) |
Interest rate as of |
|||||
(h) |
Assumes exercise of two 12-month extension options on |
|||||
(i) |
Amount outstanding is USD equivalent of €500 million. |
|||||
(j) |
Excludes adjustment for deferred financing costs. |
|||||
(k) |
Weighted average interest rate calculated using lower interest rate on swapped amount. |
Debt Covenants - Senior Notes (as of |
||
Ratios |
Requirement |
|
Total Outstanding Indebtedness to Total Assets |
≤ 60% |
39% |
Secured Indebtedness to Total Assets |
≤ 40% |
0% |
Consolidated EBITDA to Interest Expense |
≥ 1.50x |
6.01x |
Total Unencumbered Assets to Unsecured Indebtedness |
≥ 150% |
252% |
|
||||||||||||
Colocation Square Footage (CSF) and CSF Leased |
||||||||||||
(Unaudited) |
||||||||||||
|
As of |
As of |
As of |
|||||||||
Market |
Colocation |
CSF |
Colocation |
CSF |
Colocation |
CSF |
||||||
|
1,113 |
|
96 |
% |
1,113 |
|
92 |
% |
1,113 |
|
91 |
% |
|
621 |
|
71 |
% |
621 |
|
70 |
% |
621 |
|
70 |
% |
|
509 |
|
100 |
% |
509 |
|
100 |
% |
509 |
|
100 |
% |
|
402 |
|
75 |
% |
402 |
|
78 |
% |
402 |
|
85 |
% |
|
308 |
|
63 |
% |
308 |
|
64 |
% |
308 |
|
70 |
% |
|
300 |
|
100 |
% |
300 |
|
100 |
% |
300 |
|
100 |
% |
|
245 |
|
73 |
% |
245 |
|
74 |
% |
228 |
|
77 |
% |
|
203 |
|
78 |
% |
203 |
|
77 |
% |
207 |
|
71 |
% |
|
106 |
|
78 |
% |
106 |
|
79 |
% |
106 |
|
80 |
% |
Raleigh-Durham |
94 |
|
96 |
% |
83 |
|
95 |
% |
83 |
|
99 |
% |
Total - Domestic |
3,901 |
|
85 |
% |
3,890 |
|
84 |
% |
3,876 |
|
85 |
% |
|
144 |
|
99 |
% |
144 |
|
99 |
% |
98 |
|
99 |
% |
|
128 |
|
81 |
% |
128 |
|
81 |
% |
84 |
|
100 |
% |
|
39 |
|
100 |
% |
— |
|
— |
% |
— |
|
— |
% |
|
3 |
|
20 |
% |
3 |
|
20 |
% |
3 |
|
22 |
% |
Total - International |
314 |
|
91 |
% |
275 |
|
90 |
% |
185 |
|
98 |
% |
Total - Portfolio |
4,215 |
|
86 |
% |
4,165 |
|
85 |
% |
4,061 |
|
86 |
% |
|
4,035 |
|
88 |
% |
3,937 |
|
88 |
% |
3,721 |
|
90 |
% |
(a) |
CSF represents the GSF 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. May not sum to total due to rounding. |
|
(b) |
CSF Leased 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% leased. |
2020 Guidance |
||
Category |
Previous |
Revised |
Total Revenue |
|
|
Lease and Other Revenues from Customers |
|
|
Metered Power Reimbursements |
|
|
Adjusted EBITDA |
|
|
Normalized FFO per diluted common share |
|
|
Capital Expenditures |
|
|
Development(1) |
|
|
Recurring |
|
|
|
|
|
(1)Development capital expenditures include the acquisition of land for future development. |
|
||||||||||||||||||||||
Data Center Portfolio |
||||||||||||||||||||||
As of |
||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||
|
|
|
Gross Square Feet (GSF)(a) |
Powered |
Available Critical Load Capacity |
|||||||||||||||||
|
Metro |
Annualized |
Colocation Space |
CSF |
CSF |
Office & |
Office & |
Supporting |
Total(j) (000) |
|||||||||||||
|
|
$ |
88,489 |
|
428 |
|
79 |
% |
79 |
% |
83 |
|
46 |
% |
133 |
|
644 |
|
— |
|
62 |
|
|
|
66,823 |
|
383 |
|
99 |
% |
99 |
% |
11 |
|
100 |
% |
145 |
|
539 |
|
64 |
|
66 |
|
|
|
|
49,283 |
|
272 |
|
91 |
% |
100 |
% |
35 |
|
— |
% |
— |
|
307 |
|
— |
|
57 |
|
|
|
|
33,735 |
|
159 |
|
100 |
% |
100 |
% |
9 |
|
100 |
% |
55 |
|
223 |
|
— |
|
30 |
|
|
Somerset I |
|
32,749 |
|
108 |
|
81 |
% |
81 |
% |
27 |
|
99 |
% |
89 |
|
224 |
|
138 |
|
16 |
|
|
San Antonio III |
|
31,851 |
|
132 |
|
100 |
% |
100 |
% |
9 |
|
100 |
% |
43 |
|
184 |
|
— |
|
24 |
|
|
|
|
31,693 |
|
113 |
|
98 |
% |
98 |
% |
34 |
|
100 |
% |
223 |
|
371 |
|
27 |
|
71 |
|
|
|
|
28,074 |
|
197 |
|
59 |
% |
59 |
% |
6 |
|
61 |
% |
175 |
|
378 |
|
46 |
|
16 |
|
|
|
|
28,014 |
|
112 |
|
75 |
% |
75 |
% |
11 |
|
100 |
% |
37 |
|
161 |
|
3 |
|
28 |
|
|
|
|
27,590 |
|
114 |
|
81 |
% |
81 |
% |
11 |
|
63 |
% |
54 |
|
180 |
|
— |
|
21 |
|
|
Totowa - Madison** |
|
26,385 |
|
51 |
|
87 |
% |
87 |
% |
22 |
|
89 |
% |
59 |
|
133 |
|
— |
|
6 |
|
|
|
|
25,645 |
|
65 |
|
99 |
% |
99 |
% |
45 |
|
79 |
% |
53 |
|
163 |
|
65 |
|
14 |
|
|
|
|
25,128 |
|
148 |
|
100 |
% |
100 |
% |
6 |
|
100 |
% |
32 |
|
187 |
|
279 |
|
24 |
|
|
Frankfurt I |
|
22,414 |
|
53 |
|
97 |
% |
97 |
% |
8 |
|
91 |
% |
57 |
|
118 |
|
— |
|
18 |
|
|
Austin III |
|
20,851 |
|
62 |
|
69 |
% |
73 |
% |
15 |
|
81 |
% |
21 |
|
98 |
|
67 |
|
9 |
|
|
|
|
20,796 |
|
80 |
|
74 |
% |
74 |
% |
4 |
|
97 |
% |
55 |
|
139 |
|
11 |
|
12 |
|
|
|
|
20,205 |
|
74 |
|
100 |
% |
100 |
% |
6 |
|
53 |
% |
26 |
|
105 |
|
— |
|
12 |
|
|
|
|
19,844 |
|
74 |
|
100 |
% |
100 |
% |
35 |
|
12 |
% |
39 |
|
147 |
|
31 |
|
16 |
|
|
|
|
19,546 |
|
68 |
|
100 |
% |
100 |
% |
2 |
|
— |
% |
30 |
|
101 |
|
— |
|
14 |
|
|
|
|
19,250 |
|
79 |
|
100 |
% |
100 |
% |
7 |
|
100 |
% |
34 |
|
120 |
|
— |
|
15 |
|
|
Frankfurt II |
|
19,101 |
|
90 |
|
100 |
% |
100 |
% |
9 |
|
100 |
% |
72 |
|
171 |
|
10 |
|
35 |
|
|
Wappingers Falls I** |
|
18,835 |
|
37 |
|
63 |
% |
63 |
% |
20 |
|
87 |
% |
15 |
|
72 |
|
— |
|
3 |
|
|
|
|
18,590 |
|
78 |
|
100 |
% |
100 |
% |
6 |
|
69 |
% |
49 |
|
132 |
|
— |
|
12 |
|
|
Raleigh-Durham I |
Raleigh-Durham |
18,376 |
|
94 |
|
89 |
% |
96 |
% |
16 |
|
95 |
% |
82 |
|
192 |
|
235 |
|
17 |
|
|
San Antonio I |
|
18,093 |
|
44 |
|
99 |
% |
99 |
% |
6 |
|
83 |
% |
46 |
|
96 |
|
11 |
|
12 |
|
|
|
|
16,992 |
|
81 |
|
100 |
% |
100 |
% |
7 |
|
100 |
% |
34 |
|
122 |
|
— |
|
15 |
|
|
San Antonio II |
|
14,868 |
|
64 |
|
100 |
% |
100 |
% |
11 |
|
100 |
% |
41 |
|
117 |
|
— |
|
12 |
|
|
Austin II |
|
14,426 |
|
44 |
|
85 |
% |
85 |
% |
2 |
|
100 |
% |
22 |
|
68 |
|
— |
|
5 |
|
|
|
|
14,397 |
|
72 |
|
100 |
% |
100 |
% |
1 |
|
95 |
% |
16 |
|
89 |
|
13 |
|
12 |
|
|
Florence |
|
13,545 |
|
53 |
|
99 |
% |
99 |
% |
47 |
|
87 |
% |
40 |
|
140 |
|
— |
|
9 |
|
|
London I* |
|
11,938 |
|
30 |
|
100 |
% |
100 |
% |
12 |
|
56 |
% |
58 |
|
100 |
|
9 |
|
12 |
|
|
|
|
11,918 |
|
63 |
|
45 |
% |
45 |
% |
23 |
|
27 |
% |
25 |
|
112 |
|
— |
|
14 |
|
|
|
|
11,734 |
|
73 |
|
100 |
% |
100 |
% |
3 |
|
100 |
% |
27 |
|
103 |
|
— |
|
12 |
|
|
|
|
11,107 |
|
47 |
|
73 |
% |
73 |
% |
1 |
|
100 |
% |
35 |
|
83 |
|
— |
|
10 |
|
|
San Antonio IV |
|
10,981 |
|
60 |
|
100 |
% |
100 |
% |
12 |
|
100 |
% |
27 |
|
99 |
|
— |
|
12 |
|
|
London II* |
|
9,829 |
|
64 |
|
100 |
% |
100 |
% |
10 |
|
100 |
% |
93 |
|
166 |
|
4 |
|
21 |
|
|
|
|
7,116 |
|
53 |
|
41 |
% |
41 |
% |
10 |
|
98 |
% |
32 |
|
95 |
|
209 |
|
6 |
|
|
|
|
6,244 |
|
10 |
|
96 |
% |
96 |
% |
— |
|
— |
% |
1 |
|
11 |
|
— |
|
1 |
|
|
|
|
6,008 |
|
20 |
|
23 |
% |
23 |
% |
— |
|
— |
% |
8 |
|
28 |
|
— |
|
2 |
|
|
|
|
5,308 |
|
77 |
|
51 |
% |
51 |
% |
45 |
|
1 |
% |
14 |
|
136 |
|
272 |
|
16 |
|
|
|
|
5,142 |
|
34 |
|
100 |
% |
100 |
% |
26 |
|
98 |
% |
17 |
|
78 |
|
— |
|
4 |
|
|
Norwalk I** |
|
4,850 |
|
13 |
|
100 |
% |
100 |
% |
4 |
|
65 |
% |
41 |
|
58 |
|
87 |
|
2 |
|
|
|
|
2,461 |
|
14 |
|
64 |
% |
64 |
% |
4 |
|
45 |
% |
12 |
|
30 |
|
29 |
|
3 |
|
|
|
|
1,258 |
|
— |
|
— |
% |
— |
% |
19 |
|
80 |
% |
4 |
|
22 |
|
— |
|
— |
|
|
Totowa - Commerce** |
|
659 |
|
— |
|
— |
% |
— |
% |
20 |
|
44 |
% |
6 |
|
26 |
|
— |
|
— |
|
|
|
|
621 |
|
6 |
|
36 |
% |
36 |
% |
7 |
|
100 |
% |
2 |
|
15 |
|
— |
|
1 |
|
|
|
|
354 |
|
3 |
|
20 |
% |
20 |
% |
— |
|
— |
% |
— |
|
3 |
|
— |
|
1 |
|
|
Amsterdam I |
|
— |
|
39 |
|
100 |
% |
100 |
% |
15 |
|
100 |
% |
40 |
|
94 |
|
207 |
|
4 |
|
|
|
|
$ |
913,115 |
|
4,035 |
|
88 |
% |
88 |
% |
723 |
|
66 |
% |
2,218 |
|
6,976 |
|
1,818 |
|
779 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
||||||||||||||||||||||
Data Center Portfolio |
||||||||||||||||||||||
As of |
||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
Gross Square Feet (GSF)(a) |
Powered |
Available Critical Load Capacity |
|||||||||||||||||
|
Metro |
Annualized Rent(c) ( |
Colocation Space (CSF)(d) (000) |
CSF Occupied(e) |
CSF |
Office & Other(g) (000) |
Office & Other Occupied(h) |
Supporting |
Total(j) (000) |
|||||||||||||
|
|
$ |
913,115 |
|
4,035 |
|
88 |
% |
88 |
% |
723 |
|
66 |
% |
2,218 |
|
6,976 |
|
1,818 |
|
779 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
8,718 |
|
61 |
|
37 |
% |
37 |
% |
4 |
|
— |
% |
25 |
|
90 |
|
— |
|
6 |
|
|
|
|
1,343 |
|
79 |
|
11 |
% |
11 |
% |
— |
|
— |
% |
58 |
|
137 |
|
204 |
|
6 |
|
|
Somerset I (DH #14) |
|
— |
|
16 |
|
— |
% |
40 |
% |
— |
|
— |
% |
— |
|
16 |
|
— |
|
2 |
|
|
London II* (DH #3) |
|
— |
|
17 |
|
— |
% |
— |
% |
— |
|
— |
% |
— |
|
17 |
|
— |
|
7 |
|
|
London I* (DH #1) |
|
— |
|
8 |
|
— |
% |
— |
% |
— |
|
— |
% |
— |
|
8 |
|
— |
|
3 |
|
|
All Properties - Total |
|
$ |
923,176 |
|
4,215 |
|
85 |
% |
86 |
% |
727 |
|
65 |
% |
2,301 |
|
7,243 |
|
2,021 |
|
803 |
|
* |
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 is 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 |
|
|
||
(a) |
Represents the total square feet of a building under lease or available for lease based on engineers' drawings and estimates but does not include space held for development or space used by |
|
(b) |
Stabilized properties include data halls that have been in service for at least 24 months or are at least 85% leased. Pre-stabilized properties include data halls that have been in service for less than 24 months and are less than 85% leased. |
|
(c) |
Represents monthly contractual rent (defined as cash rent including customer reimbursements for metered power) under existing customer leases as of |
|
(d) |
CSF represents the GSF 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 occupied is determined based on CSF billed to customers under signed leases as of |
|
(f) |
Percent leased 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 GSF 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 occupied is determined based on Office & Other space being billed to customers under signed leases as of |
|
(i) |
Represents infrastructure support space, including mechanical, telecommunications and utility rooms, as well as building common areas. |
|
(j) |
Represents the GSF 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 GSF, 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. |
|
|||||||||||||||||||
|
|||||||||||||||||||
As of |
|||||||||||||||||||
(Dollars in millions) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
|
|
|
|
|
Under Development Costs(b) |
||||||||||||||
Facilities |
Metropolitan Area |
Estimated Completion Date |
Colocation Space (CSF) (000) |
Office & Other (000) |
Supporting Infrastructure (000) |
Powered Shell(c) (000) |
Total (000) |
Critical Load MW Capacity(d) |
Actual to Date(e) |
Estimated Costs to Completion(f) |
Total |
||||||||
|
|
2Q'20 |
53 |
|
1 |
|
66 |
|
187 |
|
307 |
|
6.0 |
|
9 |
|
|
|
|
|
|
2Q'20 |
71 |
|
1 |
|
8 |
|
— |
|
81 |
|
6.0 |
|
2 |
|
25-35 |
27-37 |
|
London III |
|
2Q'20 |
20 |
|
2 |
|
45 |
|
20 |
|
87 |
|
6.0 |
|
27 |
|
12-16 |
39-43 |
|
Somerset I |
|
3Q'20 |
45 |
|
— |
|
2 |
|
— |
|
47 |
|
6.0 |
|
— |
|
23-31 |
23-31 |
|
Frankfurt III |
|
3Q'20 |
101 |
|
9 |
|
109 |
|
39 |
|
258 |
|
35.0 |
|
61 |
|
119-138 |
180-199 |
|
|
|
3Q'20 |
— |
|
— |
|
— |
|
167 |
|
167 |
|
— |
|
34 |
|
57-66 |
91-100 |
|
San Antonio V |
|
3Q'20 |
67 |
|
7 |
|
21 |
|
105 |
|
199 |
|
9.0 |
|
56 |
|
30-39 |
86-95 |
|
Council Bluffs I |
|
3Q'20 |
42 |
|
14 |
|
18 |
|
42 |
|
115 |
|
5.0 |
|
5 |
|
55-61 |
60-66 |
|
|
|
4Q'20 |
— |
|
— |
|
— |
|
— |
|
— |
|
9.0 |
|
15 |
|
24-29 |
39-44 |
|
Dublin I |
|
4Q'20 |
39 |
|
10 |
|
33 |
|
113 |
|
195 |
|
6.0 |
|
26 |
|
40-47 |
66-73 |
|
Total |
|
|
438 |
|
44 |
|
302 |
|
672 |
|
1,456 |
|
88.0 |
|
$ |
235 |
|
|
|
(a) |
Represents GSF at a facility for which activities have commenced or are expected to commence in the next 2 quarters to prepare the space for its intended use. Estimates and timing are subject to change. May not sum to total due to rounding. |
|
(b) |
|
|
(c) |
Represents GSF under construction that, upon completion, will be powered shell available for future development into operating GSF. |
|
(d) |
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. |
|
(e) |
Actual to date is the cash investment as of |
|
(f) |
Represents management’s estimate of the total costs required to complete the current GSF under development. There may be an increase in costs if customers require greater power density. |
|
(g) |
|
Capital Expenditures - Investment in Real Estate |
Three Months Ended |
|
|
(dollars in millions) |
2020 |
Capital expenditures - investment in real estate |
|
|
|||
Land Available for |
|||
As of |
|||
(Unaudited) |
|||
|
As of |
||
Market |
|
||
|
8 |
|
|
|
44 |
|
|
|
22 |
|
|
|
23 |
|
|
|
98 |
|
|
|
10 |
|
|
|
57 |
|
|
|
15 |
|
|
|
20 |
|
|
|
24 |
|
|
|
96 |
|
|
|
48 |
|
|
|
12 |
|
|
Santa Clara |
23 |
|
|
Total Available(a) |
499 |
|
|
Book Value of Total Available |
$ |
205.4 |
million |
(a) Does not sum to total due to rounding. |
|
|||||
Leasing Statistics - Lease Signings |
|||||
As of |
|||||
(Unaudited) |
|||||
Period |
Number of Leases(a) |
Total CSF Signed(b) |
Total kW Signed(c) |
Total MRR Signed (000)(d) |
Weighted Average Lease Term(e) |
1Q'20 |
460 |
289,000 |
43,586 |
|
98 |
Prior 4Q Avg. |
456 |
108,250 |
15,369 |
|
69 |
4Q'19 |
450 |
28,000 |
4,703 |
|
55 |
3Q'19(f) |
452 |
266,000 |
35,269 |
|
99 |
2Q'19 |
500 |
46,000 |
5,946 |
|
67 |
1Q'19 |
422 |
93,000 |
15,557 |
|
56 |
(a) |
Number of leases represents each agreement with a customer. A lease agreement could include multiple spaces, and a customer could have multiple leases. |
||||
(b) |
CSF represents the GSF at an operating facility that is leased as colocation space, where customers locate their servers and other IT equipment. |
||||
(c) |
Represents maximum contracted kW that customers may draw during lease period, and subject to full build out of projects subject to additional conditions. Additionally, we can develop flexible solutions for our customers at multiple resiliency levels, and the kW signed is unadjusted for this factor. |
||||
(d) |
Monthly recurring rent is defined as the average monthly contractual rent during the term of the lease. It includes the monthly impact of installation charges of approximately |
||||
(e) |
Calculated on a CSF-weighted basis. |
||||
(f) |
Includes 30,000 CSF, 4.5 MW, and approximately |
|
||||||||
New MRR Signed - Existing vs. New Customers |
||||||||
As of |
||||||||
(Dollars in thousands) |
||||||||
(Unaudited) |
||||||||
2Q'18 |
3Q'18 |
4Q'18 |
1Q'19 |
2Q'19 |
3Q'19(b) |
4Q'19 |
1Q'20 |
|
Existing Customers |
|
|
|
|
|
|
|
|
New Customers |
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
% from Existing Customers |
81% |
93% |
73% |
93% |
89% |
66% |
79% |
95% |
(a) Monthly recurring rent is defined as the average monthly contractual rent during the term of the lease. It includes the monthly | ||||||||
impact of installation charges of approximately |
||||||||
(b) Includes approximately |
||||||||
|
|||||||
Customer Sector Diversification(a) |
|||||||
As of |
|||||||
(Unaudited) |
|||||||
|
Principal Customer Industry |
Number of |
Annualized |
Percentage of |
Weighted |
||
1 |
Information Technology |
11 |
$ |
184,457 |
20.0 |
% |
97.9 |
2 |
Information Technology |
11 |
|
61,765 |
6.7 |
% |
28.2 |
3 |
Information Technology |
5 |
|
54,404 |
5.9 |
% |
52.6 |
4 |
Information Technology |
7 |
|
35,552 |
3.9 |
% |
47.8 |
5 |
Information Technology |
7 |
|
34,431 |
3.7 |
% |
38.7 |
6 |
Information Technology |
5 |
|
22,585 |
2.4 |
% |
33.9 |
7 |
Financial Services |
1 |
|
19,434 |
2.1 |
% |
132.0 |
8 |
Healthcare |
2 |
|
15,641 |
1.7 |
% |
93.0 |
9 |
Information Technology |
4 |
|
15,456 |
1.7 |
% |
41.8 |
10 |
Research and Consulting Services |
3 |
|
15,357 |
1.7 |
% |
21.3 |
11 |
Industrials |
5 |
|
11,126 |
1.2 |
% |
7.7 |
12 |
Financial Services |
2 |
|
9,788 |
1.1 |
% |
48.3 |
13 |
Telecommunication Services |
2 |
|
9,706 |
1.1 |
% |
18.5 |
14 |
Telecommunication Services |
8 |
|
9,617 |
1.0 |
% |
11.1 |
15 |
Information Technology |
4 |
|
9,614 |
1.0 |
% |
95.8 |
16 |
Information Technology |
1 |
|
9,610 |
1.0 |
% |
47.6 |
17 |
Consumer Staples |
3 |
|
9,260 |
1.0 |
% |
11.0 |
18 |
Telecommunication Services |
1 |
|
7,686 |
0.8 |
% |
91.3 |
19 |
Information Technology |
3 |
|
7,156 |
0.8 |
% |
49.4 |
20 |
Information Technology |
1 |
|
6,922 |
0.8 |
% |
13.9 |
|
|
|
$ |
549,565 |
59.5 |
% |
63.5 |
(a) |
Customers and their affiliates are consolidated. |
||||
(b) |
Represents monthly contractual rent (defined as cash rent including customer reimbursements for metered power) under existing customer leases as of |
||||
(c) |
Represents the customer’s total annualized rent divided by the total annualized rent in the portfolio as of |
||||
(d) |
Weighted average based on customer’s percentage of total annualized rent expiring and is as of |
|
||||||||||
Lease Distribution |
||||||||||
As of |
||||||||||
(Unaudited) |
||||||||||
GSF Under Lease(a) |
Number of Customers(b) |
Percentage of All Customers |
Total |
Percentage of |
Annualized Rent(d) (000) |
Percentage of Annualized Rent |
||||
0-999 |
647 |
67 |
% |
135 |
2 |
% |
$ |
78,073 |
8 |
% |
1000-2499 |
116 |
12 |
% |
180 |
3 |
% |
|
44,661 |
5 |
% |
2500-4999 |
73 |
8 |
% |
257 |
5 |
% |
|
48,966 |
5 |
% |
5000-9999 |
46 |
5 |
% |
325 |
6 |
% |
|
53,453 |
6 |
% |
10000+ |
81 |
8 |
% |
4,720 |
84 |
% |
|
698,023 |
76 |
% |
Total |
963 |
100 |
% |
5,616 |
100 |
% |
$ |
923,176 |
100 |
% |
(a) |
Represents all leases in our portfolio, including colocation, office and other leases. |
||||
(b) |
Represents the number of customers occupying data center, office and other space as of |
||||
(c) |
Represents the total square feet at a facility under lease and that has commenced billing, excluding space held for development or space used by |
||||
(d) |
Represents monthly contractual rent (defined as cash rent including customer reimbursements for metered power) under existing customer leases as of |
|
||||||||||||||||
Lease Expirations |
||||||||||||||||
As of |
||||||||||||||||
(Unaudited) |
||||||||||||||||
Year(a) |
Number of |
Total Operating |
Percentage of |
Annualized |
Percentage of |
Annualized Rent |
Percentage of |
|||||||||
Available |
|
1,627 |
|
22 |
% |
|
|
|
|
|||||||
Month-to-Month |
1,050 |
|
55 |
|
1 |
% |
$ |
21,221 |
|
2 |
% |
$ |
21,667 |
|
2 |
% |
2020 |
2,005 |
|
541 |
|
8 |
% |
102,256 |
|
11 |
% |
102,748 |
|
10 |
% |
||
2021 |
2,697 |
|
786 |
|
11 |
% |
163,131 |
|
18 |
% |
165,717 |
|
17 |
% |
||
2022 |
1,574 |
|
638 |
|
9 |
% |
110,432 |
|
12 |
% |
116,837 |
|
12 |
% |
||
2023 |
716 |
|
830 |
|
11 |
% |
124,375 |
|
13 |
% |
136,215 |
|
14 |
% |
||
2024 |
244 |
|
540 |
|
7 |
% |
92,109 |
|
10 |
% |
102,564 |
|
10 |
% |
||
2025 |
97 |
|
245 |
|
3 |
% |
34,358 |
|
4 |
% |
41,501 |
|
4 |
% |
||
2026 |
46 |
|
622 |
|
9 |
% |
91,997 |
|
10 |
% |
98,813 |
|
10 |
% |
||
2027 |
30 |
|
489 |
|
7 |
% |
81,786 |
|
9 |
% |
90,544 |
|
9 |
% |
||
2028 |
17 |
|
278 |
|
4 |
% |
32,748 |
|
3 |
% |
38,269 |
|
4 |
% |
||
2029 |
7 |
|
82 |
|
1 |
% |
6,615 |
|
1 |
% |
8,778 |
|
1 |
% |
||
2030 - Thereafter |
19 |
|
511 |
|
7 |
% |
62,147 |
|
7 |
% |
71,845 |
|
7 |
% |
||
Total |
8,502 |
|
7,243 |
|
100 |
% |
$ |
923,176 |
|
100 |
% |
$ |
995,497 |
|
100 |
% |
(a) |
Leases that were auto-renewed prior to |
||||
(b) |
Number of leases represents each agreement with a customer. A lease agreement could include multiple spaces and a customer could have multiple leases. |
||||
(c) |
Represents monthly contractual rent (defined as cash rent including customer reimbursements for metered power) under existing customer leases as of |
||||
(d) |
Represents the final monthly contractual rent under existing customer leases that had commenced as of |
View source version on businesswire.com: https://www.businesswire.com/news/home/20200429005913/en/
Investor Relations
Vice President, Capital Markets & Investor Relations
972-350-0060
investorrelations@cyrusone.com
Source: