cone-20210728
0001553023false00015530232021-07-282021-07-280001553023us-gaap:CommonStockMember2021-07-282021-07-280001553023cone:A1.450SeniorNotesdue2027Member2021-07-282021-07-28

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): July 28, 2021
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.)

2850 N. Harwood Street, Suite 2200
Dallas, TX 75201
(Address of principal executive offices, including zip code)
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.):
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))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, $0.01 par value
CONE
The NASDAQ Global Select Market
1.450% Senior Notes due 2027
CONE27
The Nasdaq Stock Market LLC
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 July 28, 2021, CyrusOne Inc. issued a press release announcing the financial results and supplemental information for the second quarter ended June 30, 2021. A copy of the press release and supplemental information is furnished herewith as Exhibit 99.1.

Item 7.01 Regulation FD Disclosure

CyrusOne will host a conference call on July 29, 2021, at 11:00 AM Eastern Time (10:00 AM Central Time) to discuss its results for the second quarter 2021. A live webcast of the conference call will be available in the “Investors / Events & Presentations” section of the Company's website at http://investor.cyrusone.com/events.cfm. The presentation to be made during the call is now available in this location. 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 July 29, 2021, through August 12, 2021. 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 10158106.

The information in Items 2.02 and 7.01 of this Current Report on Form 8-K and the exhibit 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
104Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document.



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: July 28, 2021
CYRUSONE INC.
By:
/s/ Robert M. Jackson
Robert M. Jackson
Executive Vice President, General Counsel
and Secretary

Document

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Exhibit 99.1
CyrusOne Reports Second Quarter 2021 Earnings
Signed $41.8 Million in Annualized GAAP Revenue and 21 Megawatts in 2Q’21

DALLAS (July 28, 2021) - CyrusOne Inc. (NASDAQ: CONE), a premier global data center REIT, today announced second quarter 2021 earnings.


Highlights
Category
2Q’21
vs. 2Q’20
Revenue
$284.6 million
11%
Net income
$7.4 million
(84)%
Adjusted EBITDA
$141.9 million
4%
Normalized FFO
$123.1 million
4%
Net income per diluted common share
$0.06
(85)%
Normalized FFO per diluted common share
$1.00
(3)%

Leased 21 megawatts (“MW”) and 345,000 colocation square feet (“CSF”) in the second quarter, totaling $41.8 million in annualized GAAP revenue
Backlog of approximately $129 million in annualized GAAP revenue as of the end of the second quarter representing approximately $1,075 million in total contract value
Expansion into Madrid, Spain, one of the fastest-growing data center markets in Europe, with the acquisition of approximately five acres of land that will provide an estimated 21 MW of power capacity
Announcing a 2% increase in the quarterly dividend for the third quarter of 2021 to $0.52 per share, up from $0.51 per share in the second quarter of 2021
Entered into forward sale agreements in the second quarter through the at-the-market (“ATM”) equity program with respect to approximately 3.0 million shares of common stock, which will result in estimated net proceeds of approximately $232 million upon settlement by June 2022
Combined with forward sale agreements entered into in the third and fourth quarters of 2020, which will result in estimated net proceeds of approximately $287 million upon settlement by November 2021, the Company has approximately $519 million in available forward equity
Settled a forward sale agreement entered into in 2020, resulting in net proceeds of approximately $95 million, which were used to repay a portion of amounts outstanding under the Company’s unsecured revolving credit facility and for general corporate purposes

As previously announced, executed inaugural green senior notes offering, issuing €500 million of 1.125% senior notes due 2028
As previously announced, executed an agreement to acquire a 12-acre site in Frankfurt, providing an estimated 63 MW of power capacity to support the Company’s continued growth in one of the strongest data center markets in Europe

Second Quarter 2021 Financial Results
    
Revenue was $284.6 million for the second quarter, compared to $256.4 million for the same period in 2020, an increase of 11%. The increase in revenue was driven primarily by a 9% increase in occupied CSF and higher metered power reimbursements. Revenue included $2.1 million of equipment sales and $0.4 in lease termination fees, compared to $6.9 million of equipment sales and $3.0 million in lease termination fees in the second quarter of 2020.

Net income was $7.4 million for the second quarter, compared to net income of $45.0 million in the same period in 2020, a decrease of (84)%. Net income for the second quarter included a $1.4 million gain associated with a change in fair value on the undesignated portion of the Company’s net investment hedge compared to a $(13.9) million loss in the second quarter of 2020. Additionally, in the second quarter
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of 2020, the Company had a $50.4 million gain on the Company’s equity investment in GDS Holdings Limited. Net income per diluted common share1 was $0.06 in the second quarter of 2021, compared to net income per diluted common share of $0.39 in the same period in 2020.

Net operating income (“NOI”)2 was $162.8 million for the second quarter, compared to $157.4 million in the same period in 2020, an increase of 3%. Adjusted EBITDA3 was $141.9 million for the second quarter, compared to $136.8 million in the same period in 2020, an increase of 4%.

Normalized Funds From Operations (“Normalized FFO”)4 was $123.1 million for the second quarter, compared to $118.9 million in the same period in 2020, an increase of 4%. Normalized FFO per diluted common share was $1.00 in the first quarter of 2021, compared to $1.03 in the same period in 2020, a decrease of (3)%.

Leasing Activity

CyrusOne leased approximately 21 MW of power and 345,000 CSF in the second quarter, representing approximately $3.5 million in monthly recurring rent, inclusive of the monthly impact of installation charges. The leasing for the quarter represents approximately $41.8 million in annualized GAAP revenue5, excluding estimates for pass-through power. The weighted average lease term of the new leases, based on square footage, is 99 months (8.3 years), and the weighted average remaining lease term of CyrusOne’s portfolio is 51 months (taking into consideration the impact of the backlog). Recurring rent churn percentage6 for the second quarter was 0.8%, compared to 1.1% for the same period in 2020.

Portfolio Development and Percentage CSF Leased

In the second quarter, the Company completed construction on 146,000 CSF and 45 MW of power capacity across Dublin, London, Northern Virginia, and San Antonio. Percentage CSF leased7 as of the end of the second quarter was 86% for stabilized properties8 and 83% overall. In addition, the Company has development projects underway in Frankfurt, London, Paris, Phoenix, Northern Virginia, the New York Metro area, and Cincinnati that are expected to add approximately 280,000 CSF and 64 MW of power capacity plus 303,000 square feet of powered shell.

Balance Sheet and Liquidity

As of June 30, 2021, the Company had gross asset value9 totaling approximately $9.2 billion, an increase of approximately 15% over gross asset value as of June 30, 2020. CyrusOne had $3.59 billion of long-term debt10, $370 million of cash and cash equivalents, and approximately $1.39 billion available under its unsecured revolving credit facility as of June 30, 2021. Net debt10 was $3.38 billion as of June 30, 2021, representing approximately 28% of the Company's total enterprise value as of June 30, 2021 of $12.3 billion. This represented approximately 5.0x Adjusted EBITDA for the last quarter annualized (after further adjusting net debt to reflect the pro forma impact of settlement of the forward sale agreements). Available liquidity11 was $2.28 billion as of June 30, 2021.

During the second quarter of 2021, the Company executed its inaugural green senior notes offering, issuing €500 million of 1.125% senior notes due 2028, with the net proceeds used to repay Euro-denominated borrowings under the Company’s unsecured revolving credit facility and for general corporate purposes. The Company intends to also allocate an amount equal to the net proceeds from the Notes to finance or refinance a portfolio of existing or future green building, renewable energy, energy efficiency, sustainable water and wastewater management, pollution prevention and control and clean transportation projects or assets. The transaction smooths and extends the Company’s debt maturity schedule and increases its percentage of fixed-rate debt.

Also during the second quarter of 2021, the Company entered into forward sale agreements through its ATM equity program with respect to approximately 3.0 million shares of common stock, which will result in estimated net proceeds of approximately $232 million upon settlement by June 2022. Combined with the forward sale agreements entered into in the third and fourth quarters of 2020, which will result in estimated net proceeds of approximately $287 million upon settlement by November 2021, the Company has approximately $519 million in available forward equity (no portion of the forward sale agreements has been settled as of July 28, 2021). Also during the second quarter of 2021, the Company settled a forward sale agreement entered into in 2020, resulting in net proceeds of approximately $95 million, which were used to repay a portion of amounts outstanding on the Company’s unsecured revolving credit facility and for general corporate purposes.

Additionally, the Company entered into sales agreements pursuant to which it may issue and sell from time to time shares of its common stock having an aggregate sales price of up to $750 million through its ATM equity program. This new ATM equity program replaced the prior ATM equity program. As of June 30, 2021, there was approximately $513 million in remaining availability under the new ATM equity program.

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Dividend

On April 28, 2021, the Company announced a dividend of $0.51 per share of common stock for the second quarter of 2021. The dividend was paid on July 9, 2021, to stockholders of record at the close of business on June 25, 2021.

Additionally, today the Company is announcing a dividend of $0.52 per share of common stock for the third quarter of 2021, a 2% increase in the dividend compared to the second quarter of 2021. The dividend will be paid on October 8, 2021, to stockholders of record at the close of business on September 24, 2021.

Guidance

CyrusOne is updating its guidance for full year 2021, increasing the lower and upper ends of its guidance ranges for Total Revenue and Normalized FFO per diluted common share, increasing the lower end of its guidance range for Adjusted EBITDA, and decreasing the lower and upper ends of its guidance range for 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. We continue to monitor the global outbreak of COVID-19 and to take steps to mitigate the potential risks to us posed by the pandemic. While the impact on our business has not been significant to date, the length and severity of the effects of the pandemic remain uncertain and unpredictable and could be materially adverse to our business, financial condition, results of operations, cash flows and ability to pay dividends as well as the market price of our common stock.

CyrusOne does not provide forward-looking guidance for GAAP financial measures (other than Total Revenue and Capital Expenditures) or 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, acquisition, integration and other related expenses, Legal claim costs, Impairment losses and (gain) loss on asset disposals and other charges in its reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.
Category
Previous 2021 Guidance
Revised 2021 Guidance
Total Revenue
$1,135 - 1,175 million
$1,155 - 1,185 million
   Lease and Other Revenues from Customers
$920 - 950 million
$930 - 950 million
   Metered Power Reimbursements
$215 - 225 million
$225 - 235 million
Adjusted EBITDA
$570 - 590 million
$575 - 590 million
Normalized FFO per diluted common share
$3.90 - 4.00
$3.95 - 4.05
Capital Expenditures
$925 - 1,025 million
$875 - 975 million
   Development(1)
$905 - 985 million
$855 - 935 million
   Recurring
$20 - 40 million
$20 - 40 million



(1)Development capital expenditures include the acquisition of land for future development.

Upcoming Conferences and Events

Cowen Communications Infrastructure Summit on August 9-10 in Boulder, CO
Deutsche Bank Technology Conference on September 9-10 in San Francisco, CA

Conference Call Details

CyrusOne will host a conference call on July 29, 2021, at 11:00 AM Eastern Time (10:00 AM Central Time) to discuss its results for the second quarter 2021. A live webcast of the conference call will be available in the “Investors / Events & Presentations” section of the Company's website at http://investor.cyrusone.com/events.cfm. The presentation to be made during the call is now available in this location. 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 July 29, 2021, through August 12, 2021. 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 10158106.

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
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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) indemnification and liability provisions as well as service level commitments in our contracts with customers imposing significant costs on us in the event of losses; (iv) economic downturn, natural disaster or oversupply of data centers in the limited geographic areas that we serve; (v) 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; (vi) weakening in the fundamentals for data center real estate, including but not limited to, increased competition, falling market rents, decreases in or slowed growth of global data, e-commerce and demand for outsourcing of data storage and cloud-based applications; (vii) loss of access to key third-party service providers and suppliers; (viii) risks of loss of power or cooling which may interrupt our services to our customers; (ix) inability to identify and complete acquisitions and operate acquired properties; (x) our failure to obtain necessary outside financing on favorable terms, or at all; (xi) restrictions in the instruments governing our indebtedness; (xii) risks related to environmental, social and governance matters; (xiii) unknown or contingent liabilities related to our acquisitions; (xiv) significant competition in our industry; (xv) recent turnover, or the further loss of, any of our key personnel; (xvi) risks associated with real estate assets and the industry; (xvii) failure to maintain our status as a REIT (as defined below) or to comply with the highly technical and complex REIT provisions of the Internal Revenue Code of 1986, as amended; (xviii) REIT distribution requirements could adversely affect our ability to execute our business plan; (xix) insufficient cash available for distribution to stockholders; (xx) future offerings of debt may adversely affect the market price of our common stock; (xxi) increases in market interest rates will increase our borrowing costs and may drive potential investors to seek higher dividend yields and reduce demand for our common stock; (xxii) market price and volume of stock could be volatile; (xxiii) risks related to regulatory changes impacting our customers and demand for colocation space in particular geographies; (xxiv) our international activities, including those conducted as a result of land acquisitions and with respect to leased land and buildings, are subject to special risks different from those faced by us in the United States; (xxv) the continuing uncertainty about the future relationship between the United Kingdom and the European Union following the United Kingdom’s withdrawal from the European Union; (xxvi) expanded and widened price increases in certain selective materials for data center development capital expenditures due to international trade negotiations; (xxvii) a failure to comply with anti-corruption laws and regulations; (xxviii) legislative or other actions relating to taxes; (xxix) any significant security breach or cyber-attack on us or our key partners or customers; (xxx) the ongoing trade conflict between the United States and the People’s Republic of China; (xxxi) increased operating costs and capital expenditures at our facilities, including those resulting from higher utilization by our customers, general market conditions and inflation, exceeding revenue growth; and (xxxii) other factors affecting the real estate and technology industries generally. More information on potential risks and uncertainties is available in our recent filings with the Securities and Exchange Commission (SEC), including CyrusOne’s Form 10-K report, Form 10-Q reports, and Form 8-K reports. We disclaim any obligation other than as required by law to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors or for new information, data or methods, future events or other changes.

Use of Non-GAAP Financial Measures and Other Metrics

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 financial 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 real estate investments trusts (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 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 (loss) presented in accordance with GAAP as measures of our performance. FFO, Normalized FFO, NOI, and Adjusted EBITDA should not be used as measures of our liquidity or as indicative of funds available to fund our cash needs, including our ability to pay dividends or 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.
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1Net 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 122.7 million for the second quarter of 2021 and 115.7 million for the second quarter of 2020.
2We 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, Impairment losses and loss on asset disposals, Foreign currency and derivative (gains) losses, net, Other expense (income) and Income tax benefit. 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 pay dividends and 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.
3Adjusted 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) expense; Depreciation and amortization expenses; Impairment losses and loss on asset disposals; 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; Gain 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.
4We 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 asset disposals. While it is consistent with the definition of FFO promulgated by the National Association of Real Estate Investment Trusts ("NAREIT"), our computation of FFO may differ from the methodology for calculating FFO used by other REITs. Accordingly, our FFO may not be comparable to others.
We calculate Normalized FFO as FFO adjusted for Loss on early extinguishment of debt; Gain on marketable equity investment; Foreign currency and derivative (gains) losses, net; Amortization of tradenames; Transaction, acquisition, integration and other related expenses; Cash severance and management transition costs; Severance-related stock compensation costs; and Legal claim costs. 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 (loss) 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 pay dividends or 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.
5Annualized 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.
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6Recurring 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.
7Percentage 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 percentage CSF occupied presented in the Data Center Portfolio table because the leased rate includes CSF for signed leases that have not commenced billing.
8Stabilized properties include data halls that have been in service for at least 24 months or are at least 85% leased.
9Gross asset value is defined as total assets plus accumulated depreciation.
10Long-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.
11Liquidity 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 the net proceeds from the settlement of the forward sale agreements.
About CyrusOne

CyrusOne (NASDAQ: CONE) is a premier global REIT specializing in design, construction and operation of more than 50 high-performance data centers worldwide. The Company provides mission-critical facilities that ensure the continued operation of IT infrastructure for approximately 1,000 customers, including approximately 200 Fortune 1000 companies.
A leader in hybrid-cloud and multi-cloud deployments, CyrusOne offers colocation, hyperscale, and build-to-suit environments that help customers enhance the strategic connection of their essential data infrastructure and support achievement of sustainability goals. CyrusOne data centers offer world-class flexibility, enabling clients to modernize, simplify, and rapidly respond to changing demand. Combining exceptional financial strength with a broad global footprint, CyrusOne provides customers with long-term stability and strategic advantage at scale.

# # #

Investor Relations
Michael Schafer
Vice President, Capital Markets & Investor Relations
972-350-0060
investorrelations@cyrusone.com
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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 approximately 1,000 customers, including approximately 200 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 more than 50 data centers worldwide.

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


Corporate HeadquartersSenior Management
2850 N. Harwood St., Ste. 2200David Ferdman, Interim President & CEOBrent Behrman, EVP of Sales
Dallas, Texas 75201Katherine Motlagh, EVP & Chief Financial OfficerMatt Pullen, EVP & Managing Director, Europe
Phone: (972) 350-0060John Hatem, EVP & Chief Operating OfficerRobert M. Jackson, EVP General Counsel & Secretary
Website: www.cyrusone.com
Analyst Coverage
FirmAnalystPhone Number
BofA SecuritiesMichael J. Funk(646) 855-5664
BarclaysTim Long(212) 526 4043
Berenberg Capital MarketsNate Crossett(646) 949-9030
BMO Capital MarketsAri Klein(212) 885-4103
CitiMike Rollins(212) 816-1116
Cowen and CompanyColby Synesael(646) 562-1355
Credit SuisseSami Badri(212) 538-1727
Deutsche BankMatthew Niknam(212) 250-4711
Green Street David Guarino(949) 640-8780
JefferiesJonathan Petersen(212) 284-1705
J.P. MorganRichard Choe(212) 622-6708
KeyBanc Capital MarketsJordan Sadler(917) 368-2280
MoffettNathansonNick Del Deo, CFA(212) 519-0025
Morgan StanleySimon Flannery(212) 761-6432
RBC Capital MarketsJonathan Atkin(415) 633-8589
Raymond JamesFrank G. Louthan IV(404) 442-5867
StifelErik Rasmussen(212) 271-3461
TD Securities Inc.Jonathan Kelcher, CFA(416) 307-9931
TruistGreg Miller(212) 303-4169
UBSJohn C. Hodulik, CFA(212) 713-4226
Wells FargoEric Luebchow(312) 630-2386
William BlairJim Breen, CFA(617) 235-7513
Wolfe ResearchJeff Kvaal(646) 582-9350


9


CyrusOne Inc.
Summary of Financial Data
(Dollars in millions, except per share amounts)
 Three Months
 June 30,March 31, June 30,Growth %
 202120212020Yr/Yr
Revenue$284.6 $298.6 $256.4 11 %
Net operating income162.8 162.8 157.4 %
Net income7.4 18.2 45.0 (84)%
Funds from Operations ("FFO") - Nareit defined129.0 137.7 154.9 (17)%
Normalized Funds from Operations ("Normalized FFO")123.1 120.2 118.9 %
Weighted average number of common shares outstanding - diluted for Normalized FFO122.7 120.5 115.7 %
Net income per share - basic$0.06 $0.15 $0.39 (85)%
Net income per share - diluted$0.06 $0.15 $0.39 (85)%
Normalized FFO per diluted common share$1.00 $1.00 $1.03 (3)%
Adjusted EBITDA$141.9 $140.3 $136.8 %
Adjusted EBITDA as a % of Revenue49.9 %47.0 %53.4 %(3.5) pts

 As of
 June 30,March 31, June 30,Growth %
 202120212020Yr/Yr
Balance Sheet Data
Gross investment in real estate$7,518.8 $7,166.0 $6,504.9 16 %
Accumulated depreciation(1,977.8)(1,867.5)(1,562.7)27 %
Total investment in real estate, net5,541.0 5,298.5 4,942.2 12 %
Cash and cash equivalents369.7 240.9 70.7 n/m
Market value of common equity8,869.3 8,298.1 8,501.0 %
Long-term debt3,587.8 3,372.7 3,191.3 12 %
Net debt3,380.9 3,160.4 3,149.4 %
Total enterprise value12,250.2 11,458.5 11,650.4 %
Net debt to LQA Adjusted EBITDA(a)
5.0x4.9x5.0x—x
Dividend Activity
Dividends per share$0.51 $0.51 $0.50 %
Portfolio Statistics
Data centers54 53 51 %
Stabilized CSF (000)4,611 4,422 4,055 14 %
Stabilized CSF % leased86 %85 %88 %(2) pts
Total CSF (000)4,889 4,743 4,427 10 %
Total CSF % leased83 %82 %83 %— pts
Total GSF (000)8,346 8,139 7,605 10 %

(a) Adjusted to reflect the pro forma impact of the net proceeds from the settlement of the forward sale agreements.

10


CyrusOne Inc.
Condensed Consolidated Statements of Operations
(Dollars in millions, except per share amounts)
(Unaudited)
 
 Three Months Six Months
 Ended June 30,ChangeEnded June 30,Change
 20212020$%20212020$%
Revenue(a)
$284.6 $256.4 $28.2 11 %$583.2 $502.3 $80.9 16 %
Operating expenses:
Property operating expenses121.8 99.0 22.8 23 %257.6 191.6 66.0 34 %
Sales and marketing3.7 3.8 (0.1)(3)%7.5 8.5 (1.0)(12)%
General and administrative16.6 20.3 (3.7)(18)%39.6 47.2 (7.6)(16)%
Depreciation and amortization123.7 109.7 14.0 13 %245.1 217.8 27.3 13 %
Transaction, acquisition, integration and other related expenses0.1 0.1 — — %0.2 0.5 (0.3)(60)%
Impairment losses and loss on asset disposals0.1 2.4 (2.3)(96)%0.6 2.4 (1.8)(75)%
Total operating expenses266.0 235.3 235.3 13 %550.6 468.0 82.6 18 %
Operating income 18.6 21.1 (207.1)(12)%32.6 34.3 (1.7)(5)%
Interest expense, net(14.8)(13.9)(0.9)%(29.9)(29.9)— — %
Gain on marketable equity investment— 50.4 (50.4)(100)%2.4 65.1 (62.7)(96)%
Loss on early extinguishment of debt— — — n/m— (3.4)3.4 (100)%
Foreign currency and derivative gains (losses), net1.4 (13.9)15.3 n/m16.8 (8.8)25.6 n/m
Other (expense) income(0.1)0.1 (0.2)n/m(0.2)— (0.2)n/m
Net income before income taxes5.1 43.8 (243.3)(88)%21.7 57.3 (35.6)(62)%
Income tax benefit2.3 1.2 1.1 92 %3.9 2.4 1.5 63 %
Net income$7.4 $45.0 $(37.6)(84)%$25.6 $59.7 $(34.1)(57)%
Net income per share - basic$0.06 $0.39 $(0.33)(85)%$0.21 $0.52 $(0.31)(60)%
Net income per share - diluted$0.06 $0.39 $(0.33)(85)%$0.21 $0.52 $(0.31)(60)%
            
(a) Revenue includes metered power reimbursements of $53.0 million and $37.1 million for the three months ended June 30, 2021 and 2020, respectively, and includes metered power reimbursements of $126.1 million and $71.9 million for the six months ended June 30, 2021 and 2020, respectively.














11


CyrusOne Inc.
Condensed Consolidated Balance Sheets
(Dollars in millions)
(Unaudited)
 
 June 30,December 31,Change
 20212020$%
Assets
Investment in real estate:
Land$212.8 $208.8 $4.0 %
Buildings and improvements2,253.8 2,035.2 218.6 11 %
Equipment3,869.0 3,538.9 330.1 %
Gross operating real estate6,335.6 5,782.9 552.7 10 %
Less accumulated depreciation(1,977.8)(1,767.9)(209.9)12 %
Net operating real estate4,357.8 4,015.0 342.8 %
Construction in progress, including land under development917.3 982.2 (64.9)(7)%
Land held for future development265.9 268.3 (2.4)(1)%
Total investment in real estate, net5,541.0 5,265.5 275.5 %
Cash and cash equivalents369.7 271.4 98.3 36 %
Rent and other receivables (net of allowance for doubtful accounts of $2.3 and $3.5 as of June 30, 2021 and December 31, 2020, respectively) 409.4 334.2 75.2 23 %
Restricted cash24.8 1.5 23.3 n/m
Operating lease right-of-use assets, net155.0 211.4 (56.4)(27)%
Equity investments30.0 67.1 (37.1)(55)%
Goodwill455.1 455.1 — — %
Intangible assets (net of accumulated amortization of $265.8 and $249.3 as of June 30, 2021 and December 31, 2020, respectively)141.2 157.8 (16.6)(11)%
Other assets115.0 133.4 (18.4)(14)%
Total assets$7,241.2 $6,897.4 $343.8 5 %
Liabilities and equity
Debt$3,541.6 $3,409.0 $132.6 %
Finance lease liabilities162.8 29.1 133.7 n/m
Operating lease liabilities190.5 249.1 (58.6)(24)%
Construction costs payable157.7 133.0 24.7 19 %
Accounts payable and accrued expenses147.7 151.3 (3.6)(2)%
Dividends payable63.6 63.3 0.3 — %
Deferred revenue and prepaid rents217.1 174.1 43.0 25 %
Deferred tax liability45.3 53.0 (7.7)(15)%
Other liabilities58.3 77.3 (19.0)(25)%
Total liabilities4,584.6 4,339.2 245.4 6 %
Stockholders' equity
Preferred stock, $0.01 par value, 100,000,000 authorized; no shares issued or outstanding— — — n/m
Common stock, $0.01 par value, 500,000,000 shares authorized and 124,010,867 and 120,442,521 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively1.2 1.2 — — %
Additional paid in capital3,731.3 3,537.3 194.0 %
Accumulated deficit(1,066.1)(966.6)(99.5)10 %
Accumulated other comprehensive loss(9.8)(13.7)3.9 (28)%
Total stockholders’ equity2,656.6 2,558.2 98.4 4 %
Total liabilities and equity$7,241.2 $6,897.4 $343.8 5 %

12


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

 
For the three months ended:June 30,March 31,December 31,September 30,June 30,
 20212021202020202020
Revenue(a)
$284.6 $298.6 $268.4 $262.8 $256.4 
Operating expenses:
Property operating expenses121.8 135.8 110.3 109.7 99.0 
Sales and marketing3.7 3.8 5.3 4.5 3.8 
General and administrative16.6 23.0 22.4 29.7 20.3 
Depreciation and amortization123.7 121.4 118.5 113.1 109.7 
Transaction, acquisition, integration and other related expenses0.1 0.1 1.5 1.6 0.1 
Impairment losses and loss on asset disposals0.1 0.5 — 8.8 2.4 
Total operating expenses266.0 284.6 258.0 267.4 235.3 
Operating income (loss)18.6 14.0 10.4 (4.6)21.1 
Interest expense, net(14.8)(15.1)(14.5)(13.3)(13.9)
Gain on marketable equity investment— 2.4 19.7 4.7 50.4 
Loss on early extinguishment of debt— — — (3.1)— 
Foreign currency and derivative gains (losses), net1.4 15.4 4.1 (22.9)(13.9)
Other (expense) income(0.1)(0.1)— — 0.1 
Net income (loss) before income taxes5.1 16.6 19.7 (39.2)43.8 
Income tax benefit (expense)2.3 1.6 (0.7)1.9 1.2 
Net income (loss)$7.4 $18.2 $19.0 $(37.3)$45.0 
Net income (loss) per share - basic$0.06 $0.15 $0.15 $(0.32)$0.39 
Net income (loss) per share - diluted$0.06 $0.15 $0.15 $(0.32)$0.39 

(a) Revenue includes metered power reimbursements of $53.0 million, $73.1 million, $44.9 million, $44.6 million and $37.1 million for the three months ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively.















13


CyrusOne Inc.
Condensed Consolidated Balance Sheets
(Dollars in millions)
(Unaudited) 
June 30,March 31,December 31,September 30,June 30,
20212021202020202020
Assets
Investment in real estate:
Land$212.8 $207.3 $208.8 $181.2 $175.5 
Buildings and improvements2,253.8 2,046.6 2,035.2 1,918.4 1,857.9 
Equipment3,869.0 3,596.5 3,538.9 3,341.7 3,229.5 
Gross operating real estate6,335.6 5,850.4 5,782.9 5,441.3 5,262.9 
Less accumulated depreciation(1,977.8)(1,867.5)(1,767.9)(1,663.4)(1,562.7)
Net operating real estate4,357.8 3,982.9 4,015.0 3,777.9 3,700.2 
Construction in progress, including land under development917.3 1,053.3 982.2 1,085.9 1,024.8 
Land held for future development265.9 262.3 268.3 264.4 217.2 
Total investment in real estate, net5,541.0 5,298.5 5,265.5 5,128.2 4,942.2 
Cash and cash equivalents369.7 240.9 271.4 156.5 70.7 
Rent and other receivables, net409.4 389.8 334.2 306.9 307.0 
Restricted cash24.8 1.4 1.5 1.4 1.3 
Operating lease right-of-use assets, net155.0 239.7 211.4 206.9 204.7 
Equity investments30.0 22.9 67.1 178.1 184.9 
Goodwill455.1 455.1 455.1 455.1 455.1 
Intangible assets, net141.2 149.2 157.8 166.4 174.9 
Other assets115.0 114.3 133.4 112.8 127.3 
Total assets$7,241.2 $6,911.8 $6,897.4 $6,712.3 $6,468.1 
Liabilities and equity
Debt$3,541.6 $3,337.4 $3,409.0 $3,197.8 $3,156.9 
Finance lease liabilities162.8 28.6 29.1 29.2 28.8 
Operating lease liabilities190.5 277.9 249.1 244.3 240.5 
Construction costs payable157.7 137.5 133.0 168.2 155.7 
Accounts payable and accrued expenses147.7 168.9 151.3 145.3 127.0 
Dividends payable63.6 62.0 63.3 63.1 59.7 
Deferred revenue and prepaid rents217.1 183.2 174.1 166.8 166.2 
Deferred tax liability45.3 48.2 53.0 55.4 55.8 
Other liabilities58.3 53.3 77.3 37.8 16.8 
Total liabilities4,584.6 4,297.0 4,339.2 4,107.9 4,007.4 
Stockholders' equity
Preferred stock, $0.01 par value, 100,000,000 authorized; no shares issued or outstanding— — — — — 
Common stock, $0.01 par value, 500,000,000 shares authorized and 124,010,867 and 120,442,521 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively1.2 1.2 1.2 1.2 1.2 
Additional paid in capital3,731.3 3,628.6 3,537.3 3,532.9 3,305.9 
Accumulated deficit(1,066.1)(1,010.2)(966.6)(923.9)(824.7)
Accumulated other comprehensive loss(9.8)(4.8)(13.7)(5.8)(21.7)
Total stockholders' equity2,656.6 2,614.8 2,558.2 2,604.4 2,460.7 
Total liabilities and equity$7,241.2 $6,911.8 $6,897.4 $6,712.3 $6,468.1 



14


CyrusOne Inc.
Condensed Consolidated Statements of Cash Flows
(Dollars in millions)
(Unaudited) 
 Six Months Ended June 30, 2021Six Months Ended June 30, 2020Three Months Ended June 30, 2021Three Months Ended June 30, 2020
Cash flows from operating activities:
Net income$25.6 $59.7 $7.4 $45.0 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization245.1 217.8 123.7 109.7 
Provision for bad debt expense(0.9)— 0.2 0.1 
Gain on marketable equity investment(2.4)(65.1)— (50.4)
Foreign currency and derivative (gains) losses, net(16.8)8.8 (1.4)13.9 
Proceeds from swap terminations— 2.9 — — 
Impairment losses and loss on asset disposals0.6 2.2 0.1 2.2 
Loss on early extinguishment of debt— 3.4 — — 
Interest expense amortization, net3.5 3.6 1.9 1.6 
Stock-based compensation expense8.7 7.0 4.3 3.3 
Deferred income tax benefit(6.0)(4.2)(3.4)(2.2)
Operating lease cost10.3 13.0 5.1 6.8 
Other (expense) income(0.1)0.5 — 0.3 
Change in operating assets and liabilities:
Rent and other receivables, net and other assets(68.5)(31.0)(25.1)(1.6)
Accounts payable and accrued expenses(3.3)4.7 (21.7)5.9 
Deferred revenue and prepaid rents42.5 2.0 34.0 (1.2)
Operating lease liabilities(12.2)(11.1)(5.7)(5.5)
Net cash provided by operating activities226.1 214.2 119.4 127.9 
Cash flows from investing activities:
Investments in real estate(361.7)(458.0)(186.3)(261.5)
Proceeds from sale of equity investments46.6 8.2 — 8.2 
Equity investments(7.1)(4.7)(7.1)(1.4)
Proceeds from the sale of real estate assets4.4 0.3 — 0.3 
Net cash used in investing activities(317.8)(454.2)(193.4)(254.4)
Cash flows from financing activities:
Issuance of common stock, net194.2 103.3 98.4 102.7 
Dividends paid(124.7)(116.1)(61.7)(57.7)
Proceeds from revolving credit facility173.4 438.8 83.1 194.4 
Repayments of revolving credit facility(610.5)(723.1)(486.3)(100.0)
Proceeds from Euro bond603.1 550.2 603.1 (0.4)
Proceeds from unsecured term loan— 1,100.0 — — 
Repayments of unsecured term loan— (1,100.0)— — 
Payment of deferred financing costs(5.0)(12.5)(5.0)1.1 
Payments on finance lease liabilities(2.2)(1.3)(1.5)(0.6)
Tax payment upon exercise of equity awards(8.9)(6.4)— (0.1)
Net cash provided by financing activities219.4 232.9 230.1 139.4 
Effect of exchange rate changes on cash, cash equivalents and restricted cash(6.1)1.4 (3.9)0.5 
Net (increase) decrease in cash, cash equivalents and restricted cash121.6 (5.7)152.2 13.4 
Cash, cash equivalents and restricted cash at beginning of period272.9 77.7 242.3 58.6 
Cash, cash equivalents and restricted cash at end of period$394.5 $72.0 $394.5 $72.0 
Supplemental disclosure of cash flow information:
Cash paid for interest, including amounts capitalized of $10.8 million and $11.4 million in 2021 and 2020, respectively
$42.2 $30.0 $29.4 $21.7 
Cash paid for income taxes3.2 0.1 3.2 0.1 
Non-cash investing and financing activities:
Construction costs payable157.7 155.7 157.7 155.7 
Dividends payable63.6 59.7 63.6 59.7 
15


CyrusOne Inc.
Reconciliation of Net Income to Net Operating Income
(Dollars in millions)
(Unaudited)
 Three Months Ended  Six Months Ended
 June 30,ChangeJune 30,Change
20212020$%20212020$%
Net income$7.4 $45.0 $(37.6)(84)%$25.6 $59.7 $(34.1)(57)%
Sales and marketing expenses3.7 3.8 (0.1)(3)%7.5 8.5 (1.0)(12)%
General and administrative expenses16.6 20.3 (3.7)(18)%39.6 47.2 (7.6)(16)%
Depreciation and amortization expenses123.7 109.7 14.0 13 %245.1 217.8 27.3 13 %
Transaction, acquisition, integration and other related expenses0.1 0.1 — — %0.2 0.5 (0.3)(60)%
Interest expense, net14.8 13.9 0.9 %29.9 29.9 — — %
Gain on marketable equity investment— (50.4)50.4 (100)%(2.4)(65.1)62.7 (96)%
Loss on early extinguishment of debt— — — n/m— 3.4 (3.4)(100)%
Impairment losses and loss on asset disposals0.1 2.4 (2.3)(96)%0.6 2.4 (1.8)(75)%
Foreign currency and derivative (gains) losses, net(1.4)13.9 (15.3)n/m(16.8)8.8 (25.6)n/m
Other expense (income)0.1 (0.1)0.2 n/m0.2 — 0.2 n/m
Income tax benefit(2.3)(1.2)(1.1)92 %(3.9)(2.4)(1.5)63 %
Net Operating Income$162.8 $157.4 $5.4 3 %$325.6 $310.7 $14.9 5 %

CyrusOne Inc.
Net Operating Income and Reconciliation of Net Income (Loss) to Adjusted EBITDA
(Dollars in millions)
(Unaudited)
 Six Months Ended  Three Months Ended
 June 30,ChangeJune 30,March 31,December 31,September 30,June 30,
 20212020$%20212021202020202020
Net Operating Income
Revenue$583.2 $502.3 $80.9 16%$284.6 $298.6 $268.4 $262.8 $256.4 
Property operating expenses257.6 191.6 66.0 34%121.8 135.8 110.3 109.7 99.0 
Net Operating Income (NOI)$325.6 $310.7 $14.9 5%$162.8 $162.8 $158.1 $153.1 $157.4 
NOI as a % of Revenue55.8 %61.9 %57.2 %54.5 %58.9 %58.3 %61.4 %
Reconciliation of Net Income (Loss) to Adjusted EBITDA:
Net income (loss) $25.6 $59.7 $(34.1)(57)%$7.4 $18.2 $19.0 $(37.3)$45.0 
Interest expense, net29.9 29.9 — —%14.8 15.1 14.5 13.3 13.9 
Income tax (benefit) expense(3.9)(2.4)(1.5)63%(2.3)(1.6)0.7 (1.9)(1.2)
Depreciation and amortization expenses245.1 217.8 27.3 13%123.7 121.4 118.5 113.1 109.7 
Impairment losses and loss on asset disposals0.6 2.4 (1.8)(75)%0.1 0.5 — 8.8 2.4 
EBITDA (Nareit definition)(a)
$297.3 $307.4 $(10.1)(3)%$143.7 $153.6 $152.7 $96.0 $169.8 
Transaction, acquisition, integration and other related expenses0.2 0.5 (0.3)(60)%0.1 0.1 1.5 1.6 0.1 
Legal claim costs(4.9)0.2 (5.1)n/m(4.9)— — 0.1 0.1 
Stock-based compensation expense8.7 6.9 1.8 26%4.3 4.4 4.4 4.2 3.4 
Cash severance and management transition costs(0.1)6.8 (6.9)n/m— (0.1)0.9 6.4 — 
Severance-related stock compensation costs— 0.1 (0.1)(100)%— — 0.2 2.6 — 
Loss on early extinguishment of debt— 3.4 (3.4)(100)%— — — 3.1 — 
Gain on marketable equity investment(2.4)(65.1)62.7 (96)%— (2.4)(19.7)(4.7)(50.4)
Foreign currency and derivative (gains) losses, net(16.8)8.8 (25.6)n/m(1.4)(15.4)(4.1)22.9 13.9 
Other expense (income)0.2 — 0.2 n/m0.1 0.1 — — (0.1)
Adjusted EBITDA$282.2 $269.0 $13.2 5%$141.9 $140.3 $135.9 $132.2 $136.8 
Adjusted EBITDA as a % of Revenue48.4 %53.6 %49.9 %47.0 %50.6 %50.3 %53.4 %
(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) expense, Depreciation and amortization expenses and Impairment losses and loss (gain) on asset disposals. While it is consistent with the definition of EBITDAre promulgated by the National Association of Real Estate Investment Trusts ("Nareit"), our computation of EBITDAre may differ from the methodology for calculating EBITDAre used by other REITs. Accordingly, our EBITDAre may not be comparable to others.
16


CyrusOne Inc.
Reconciliation of Net Income (Loss) to FFO and Normalized FFO
(Dollars in millions)
(Unaudited)
 Six Months Ended  Three Months Ended
 June 30,ChangeJune 30,March 31,December 31,September 30,June 30,
20212020$%20212021202020202020
Reconciliation of Net Income (Loss) to FFO and Normalized FFO:
Net income (loss)$25.6 $59.7 $(34.1)(57)%$7.4 $18.2 $19.0 $(37.3)$45.0 
Real estate depreciation and amortization240.5 213.3 27.2 13 %121.5 119.0 116.1 110.7 107.5 
Impairment losses and loss on asset disposals0.6 2.3 (1.7)(74)%0.1 0.5 — 8.8 2.4 
Funds from Operations ("FFO") - Nareit defined$266.7 $275.3 $(8.6)(3)%$129.0 $137.7 $135.1 $82.2 $154.9 
Loss on early extinguishment of debt— 3.4 (3.4)(100)%— — — 3.1 — 
Gain on marketable equity investment(2.4)(65.1)62.7 (96)%— (2.4)(19.7)(4.7)(50.4)
Foreign currency and derivative (gains) losses, net(16.8)8.8 (25.6)n/m(1.4)(15.4)(4.1)22.9 13.9 
Amortization of tradenames0.6 0.6 — — %0.3 0.3 0.4 0.2 0.3 
Transaction, acquisition, integration and other related expenses0.2 0.6 (0.4)(67)%0.1 0.1 1.5 1.6 0.1 
Cash severance and management transition costs(0.1)6.8 (6.9)n/m— (0.1)0.9 6.4 — 
Severance-related stock compensation costs— 0.1 (0.1)(100)%— — 0.2 2.6 — 
Legal claim costs(4.9)0.2 (5.1)n/m(4.9)— — 0.1 0.1 
Normalized Funds from Operations (Normalized FFO)$243.3 $230.7 $12.6 5 %$123.1 $120.2 $114.3 $114.4 $118.9 
Normalized FFO per diluted common share$2.00 $2.00 $  %$1.00 $1.00 $0.94 $0.96 $1.03 
Weighted average diluted common shares outstanding121.6 115.4 6.2 5 %122.7 120.5 120.6 119.2 115.7 
Additional Information:
Amortization of deferred financing costs and bond premium / discount3.5 3.6 (0.1)(3)%1.9 1.6 1.6 1.6 1.6 
Stock-based compensation expense8.7 6.9 1.8 26 %4.3 4.4 4.4 4.2 3.4 
Non-real estate depreciation and amortization4.0 4.0 — — %1.8 2.2 2.0 2.1 2.0 
Straight line rent adjustments(a)
(2.0)(0.4)(1.6)n/m(3.2)1.2 (8.0)(6.6)(2.1)
Straight line rental expense adjustments0.8 (0.5)1.3 n/m0.6 0.2 0.1 (0.1)(0.2)
Above and below market rent amortization(0.1)(0.2)0.1 (50)%— (0.1)(0.1)(0.1)(0.1)
Deferred tax benefit(5.9)(4.2)(1.7)40 %(3.3)(2.6)(0.2)(2.7)(2.2)
Deferred revenue, primarily installation revenue(b)
23.9 0.1 23.8 n/m15.1 8.8 2.3 0.2 2.3 
Leasing commissions(9.0)(5.6)(3.4)61 %(5.1)(3.9)(4.3)(5.3)(3.2)
Recurring capital expenditures(6.5)(9.9)3.4 (34)%(3.9)(2.6)(0.8)(3.1)(6.4)

(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 CyrusOne does not include in its basic data center design. The company charges customers up front for these buildouts rather than incorporating into rent and billing them over time. The cash payments for these buildouts are non-recurring, and may vary significantly from quarter to quarter, but revenue is amortized over the life of the lease.
17


CyrusOne Inc.
Market Capitalization Summary, Reconciliation of Net Debt and Interest Summary
(Unaudited)
    Market Capitalization (as of June 30, 2021)
(dollars in millions)Shares or
Equivalents
Outstanding
Market Price
as of
June 30, 2021
Market Value
Equivalents
(in millions)
Common shares124,010,867 $71.52 $8,869.3 
Net Debt3,380.9 
Total Enterprise Value (TEV)$12,250.2 
    
    Reconciliation of Net Debt
June 30,March 31,June 30,
(dollars in millions)202120212020
Long-term debt(a)
$3,587.8 $3,372.7 $3,191.3 
Finance lease liabilities162.8 28.6 28.8 
Less:
Cash and cash equivalents(369.7)(240.9)(70.7)
Net Debt$3,380.9 $3,160.4 $3,149.4 
(a)     Excludes adjustment for deferred financing costs and unamortized bond discounts.

    Interest Summary
Three Months Ended
June 30,March 31,June 30,% Change
(dollars in millions)202120212020Yr/Yr
Interest expense and fees, net$18.8 $18.4 $17.7 %
Amortization of deferred financing costs and bond premium / discount1.9 1.6 1.6 19 %
Capitalized interest(5.9)(4.9)(5.4)%
Total interest expense, net$14.8 $15.1 $13.9 6 %






























18


CyrusOne Inc.
Debt Schedule and Debt Covenants
(Unaudited)

    Debt Schedule (as of June 30, 2021)
(dollars in millions)
Long-term debt:AmountInterest RateMaturity Date
Revolving credit facility - USD(a)
— USD LIBOR + 100 bps
March 2025(b)
Term loan(c)
800.0 
USD LIBOR + 120 bps(d)
March 2025(e)
2.900% USD senior notes due 2024600.0 2.900%November 2024
1.450% EUR senior notes due 2027(f)
593.9 1.450%January 2027
1.125% EUR senior notes due 2028(f)
593.9 1.125%May 2028
3.450% USD senior notes due 2029600.0 3.450%November 2029
2.150% USD senior notes due 2030400.0 2.150%November 2030
Total long-term debt(g)
$3,587.8 
2.03%(h)
Weighted average term of debt(b)(e):
5.9 years
(a)Revolving credit facility includes 0.20% facility fee on entire revolving credit facility commitment of $1.4 billion.
(b)Assuming exercise of 12-month extension option.
(c)$500 million of $800 million synthetically converted into €451 million pursuant to a USD-EUR cross currency swap; $300 million swapped pursuant to USD floating to fixed interest rate swap.
(d)Interest rate as of June 30, 2021: 1.30%; weighted average interest rate pursuant to swaps: 1.36%.    
(e)Assumes exercise of two 12-month extension options on $100 million tranche.
(f)Amount outstanding is USD-equivalent of €500 million.
(g)Excludes adjustment for deferred financing costs and unamortized bond discounts.
(h)Weighted average interest rate calculated using interest rate on swapped amount.

    Debt Covenants - Senior Notes (as of June 30, 2021)
RatiosRequirementJune 30, 2021
Total Outstanding Indebtedness to Total Assets≤ 60%43%
Secured Indebtedness to Total Assets≤ 40%2%
Consolidated EBITDA to Interest Expense≥ 1.50x6.86x
Total Unencumbered Assets to Unsecured Indebtedness≥ 150%236%

19


CyrusOne Inc.
Colocation Square Footage (CSF) and CSF Leased
(Unaudited)
 
As of June 30, 2021As of March 31, 2021As of June 30, 2020
Market
Colocation Space (CSF)(a) (000)
CSF Leased(b)
Colocation Space (CSF)(a) (000)
CSF Leased(b)
Colocation Space (CSF)(a) (000)
CSF Leased(b)
Northern Virginia1,217 91 %1,166 93 %1,166 92 %
Dallas621 67 %621 66 %621 71 %
Phoenix581 99 %581 97 %581 92 %
San Antonio434 97 %434 97 %367 96 %
Cincinnati402 68 %402 68 %402 73 %
New York Metro345 72 %345 66 %245 76 %
Houston308 53 %308 57 %308 62 %
Chicago203 80 %203 80 %203 78 %
Austin106 69 %106 77 %106 76 %
Raleigh-Durham94 100 %94 94 %94 96 %
Council Bluffs, Iowa42 15 %42 15 %— — %
Total - Domestic4,351 81 %4,300 81 %4,093 83 %
Frankfurt252 100 %252 90 %144 99 %
London167 90 %148 83 %148 70 %
Dublin76 100 %— — %— — %
Amsterdam39 100 %39 100 %39 100 %
Singapore20 %20 %20 %
Total - International537 96 %443 88 %334 85 %
Total - Portfolio4,889 83 %4,743 82 %4,427 83 %
Stabilized Properties(c)
4,611 86 %4,422 85 %4,055 88 %

(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.






















20



CyrusOne Inc.
2021 Guidance
Category
Previous
2021 Guidance
Revised
2021 Guidance
Total Revenue$1,135 - 1,175 million$1,155 - 1,185 million
   Lease and Other Revenues from Customers$920 - 950 million$930 - 950 million
   Metered Power Reimbursements$215 - 225 million$225 - 235 million
Adjusted EBITDA$570 - 590 million$575 - 590 million
Normalized FFO per diluted common share$3.90 - 4.00$3.95 - 4.05
Capital Expenditures$925 - 1,025 million$875 - 975 million
   Development(1)
$905 - 985 million$855 - 935 million
   Recurring$20 - 40 million$20 - 40 million
(1)Development capital expenditures include the acquisition of land for future development.
CyrusOne is updating its guidance for full year 2021, increasing the lower and upper ends of its guidance ranges for Total Revenue and Normalized FFO per diluted common share, increasing the lower end of its guidance range for Adjusted EBITDA, and decreasing the lower and upper ends of its guidance range for Capital Expenditures. 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. We continue to monitor the global outbreak of COVID-19 and to take steps to mitigate the potential risks to us posed by the pandemic. While the impact on our business has not been significant to date, the length and severity of the effects of the pandemic remain uncertain and unpredictable and could be materially adverse to our business, financial condition, results of operations, cash flows and ability to pay dividends as well as the market price of our common stock.

CyrusOne does not provide forward-looking guidance for GAAP financial measures (other than Total Revenue and Capital Expenditures) or 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, acquisition, integration and other related expenses, Legal claim costs, Impairment losses and (gain) loss on asset disposals and other charges in its reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.

21


CyrusOne Inc.
Data Center Portfolio
As of June 30, 2021 (Unaudited)
  
Gross Square Feet (GSF)(a)
Powered Shell  Available for Future  Development (GSF)(k) (000)
Available Critical Load Capacity (MW)(l)
Stabilized Properties(b)
Metro
Area
Annualized
Rent(c)
($000)
Colocation
Space
(CSF)(d)
(000)
CSF Occupied(e)
CSF Leased(f)
Office & Other(g) (000)
Office & Other
Occupied(h)
Supporting Infrastructure(i) (000)
Total(j) (000)
Dallas - CarrolltonDallas$93,970428 74 %74 %83 46 %133 644 — 60 
Northern Virginia - Sterling VNorthern Virginia71,621 383 99 %99 %11 100 %145 539 231 69 
Northern Virginia - Sterling VINorthern Virginia62,906 272 100 %100 %35 — %— 307 — 57 
Frankfurt IIFrankfurt44,435 90 100 %100 %100 %72 171 10 35 
Somerset INew York Metro37,201 169 93 %93 %27 99 %149 344 28 25 
Northern Virginia - Sterling IINorthern Virginia36,994 159 100 %100 %100 %55 223 — 30 
San Antonio IIISan Antonio34,275 132 100 %100 %100 %43 184 — 24 
Chicago - Aurora IChicago33,251 113 98 %99 %34 100 %223 371 27 52 
Phoenix - Chandler VIPhoenix30,068 148 100 %100 %100 %32 187 169 24 
Frankfurt IIIFrankfurt29,933 109 100 %100 %16 100 %100 225 — 40 
Dallas - Lewisville*Dallas27,314 114 74 %74 %11 57 %54 180 — 21 
Totowa - Madison**New York Metro26,349 51 86 %96 %22 86 %59 133 — 12 
Frankfurt IFrankfurt25,962 53 97 %97 %91 %57 118 — 18 
Cincinnati - North CincinnatiCincinnati25,821 65 99 %99 %45 79 %53 163 62 12 
Cincinnati - 7th Street***Cincinnati24,217 197 46 %46 %61 %175 378 46 17 
Austin IIIAustin23,089 62 58 %58 %15 81 %21 98 67 11 
Phoenix - Chandler IPhoenix22,600 74 99 %100 %35 12 %39 147 31 12 
Phoenix - Chandler VPhoenix22,541 143 95 %95 %97 %25 170 13 24 
Phoenix - Chandler IIPhoenix21,661 74 100 %100 %53 %26 105 — 12 
Houston - Houston West IIHouston20,620 80 71 %72 %97 %55 139 11 12 
Phoenix - Chandler IIIPhoenix20,553 68 100 %100 %— %30 101 — 12 
Raleigh-Durham IRaleigh-Durham20,401 94 98 %100 %16 99 %82 192 235 14 
Houston - Houston West IHouston20,246 112 49 %49 %11 100 %37 161 32 
San Antonio ISan Antonio19,770 44 99 %99 %83 %46 96 11 12 
Northern Virginia - Sterling IIINorthern Virginia19,633 79 100 %100 %100 %34 120 — 15 
Northern Virginia - Sterling IVNorthern Virginia18,001 81 100 %100 %100 %34 122 — 15 
Wappingers Falls I**New York Metro17,843 37 62 %62 %20 86 %15 72 — 
San Antonio IISan Antonio17,174 64 100 %100 %11 100 %41 117 — 12 
Northern Virginia - Sterling INorthern Virginia16,088 78 91 %92 %63 %49 132 — 12 
London II*London16,036 64 100 %100 %10 100 %94 168 21 
Austin IIAustin15,613