Company Announcements

CyrusOne Reports Second Quarter 2020 Earnings

Signed $37 Million in Annualized GAAP Revenue and 22 Megawatts

Record Quarter-End Backlog of $97 Million in Annualized GAAP Revenue

DALLAS--(BUSINESS WIRE)--Jul. 29, 2020-- CyrusOne Inc. (NASDAQ: CONE), a premier global data center REIT, today announced second quarter 2020 earnings.

Highlights

Category

2Q’20

vs. 2Q’19

Revenue

$256.4 million

2%

Net income / (loss)

$45.0 million

n/m

Adjusted EBITDA

$136.8 million

7%

Normalized FFO

$118.9 million

16%

Net income / (loss) per diluted share

$0.39

n/m

Normalized FFO per diluted share

$1.03

14%

  • Leased 22 megawatts (“MW”) and 150,000 colocation square feet (“CSF”) in the second quarter, totaling $37 million in annualized GAAP revenue
    – Balanced geographical mix with 51% of annualized GAAP revenue totaling $19 million signed across European markets
    – Includes exercise of previously disclosed (in 3Q'19) paid reservation for 4.5 MW totaling approximately $5.5 million in annualized GAAP revenue
  • Backlog of $97 million in annualized GAAP revenue as of the end of the second quarter, the highest quarter-end backlog in the company’s history, representing approximately $710 million in total contract value
  • Announcing a 2% increase in the quarterly dividend for the third quarter of 2020 to $0.51 per share, up from $0.50 per share in the second quarter of 2020
  • Entered into forward sale agreements through the at-the-market (“ATM”) equity program with respect to approximately 4.2 million shares of common stock, which will result in estimated net proceeds of approximately $292 million upon settlement by May 2021
    – Combined with the forward sale agreement entered into in the first quarter of 2020, which will result in estimated net proceeds of approximately $121 million upon settlement by March 2021, the Company has approximately $413 million in available forward equity
    – Settled the forward sale agreement entered into in the fourth quarter of 2019, resulting in net proceeds of approximately $97 million, which were used to pay down a portion of amounts outstanding on the Company’s unsecured revolving credit facility

“We had another very strong leasing quarter with broad demand across our markets in the U.S. and Europe, and the nearly $100 million revenue backlog positions us well for growth in 2021 and beyond,” said Bruce Duncan, president and chief executive officer of CyrusOne. “We also continue to strengthen our balance sheet, and our $1.5 billion in available liquidity, including more than $400 million in forward equity, gives us significant capacity to fund our development pipeline while managing our leverage.”

Second Quarter 2020 Financial Results

Revenue was $256.4 million for the second quarter, compared to $251.5 million for the same period in 2019, an increase of 2%. The increase in revenue was driven primarily by a 7% increase in occupied CSF, lease termination fees totaling $3.0 million, and additional interconnection services, partially offset by the impact of equipment sales and rent churn. Revenue in the second quarter of 2020 included $6.9 million of equipment sales, compared to $17.1 million of equipment sales for the same period in 2019.

Net income was $45.0 million for the second quarter, compared to net loss of $(8.5) million in the same period in 2019. Net income for the second quarter included a $50.4 million gain on the Company’s equity investment in GDS Holdings Limited (“GDS”), a leading data center provider in China, compared to an $(8.5) million loss in the second quarter of 2019. Also in the second quarter, the Company recognized a $(13.9) million loss associated with a change in fair value on the undesignated portion of its net investment hedge. Net income per diluted common share1 was $0.39 in the second quarter of 2020, compared to net loss per diluted common share of $(0.08) in the same period in 2019.

Net operating income (“NOI”)2 was $157.4 million for the second quarter, compared to $148.2 million in the same period in 2019, an increase of 6%. Adjusted EBITDA3 was $136.8 million for the second quarter, compared to $127.3 million in the same period in 2019, an increase of 7%.

Normalized Funds From Operations (“Normalized FFO”)4 was $118.9 million for the second quarter, compared to $102.1 million in the same period in 2019, an increase of 16%. Normalized FFO per diluted common share was $1.03 in the second quarter of 2020, compared to $0.90 in the same period in 2019, an increase of 14%.

Leasing Activity

CyrusOne leased approximately 22 MW of power and 150,000 CSF in the second quarter, representing approximately $3.1 million in monthly recurring rent, inclusive of the monthly impact of installation charges. The leasing for the quarter represents approximately $36.8 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 84 months (7.0 years), and the weighted average remaining lease term of CyrusOne’s portfolio is 52 months (taking into consideration the impact of the backlog). Recurring rent churn percentage6 for the second quarter was 1.1%, compared to 0.6% for the same period in 2019.

Portfolio Development and Percentage CSF Leased

In the second quarter, the Company completed construction on 212,000 CSF and 27 MW of power capacity in San Antonio, Phoenix, Northern Virginia, and London. Percentage CSF leased7 as of the end of the second quarter was 88% for stabilized properties8 and 83% overall. In addition, the Company has development projects underway in Frankfurt, Dublin, London, Northern Virginia, San Antonio, the New York Metro area, and Council Bluffs (IA) that are expected to add approximately 336,000 CSF and 82 MW of power capacity plus 337,000 square feet of powered shell.

Balance Sheet and Liquidity

As of June 30, 2020, the Company had gross asset value9 totaling approximately $8.0 billion, an increase of approximately 13% over gross asset value as of June 30, 2019. CyrusOne had $3.19 billion of long-term debt10, $71 million of cash and cash equivalents, and $1.06 billion available under its unsecured revolving credit facility as of June 30, 2020. Net debt10 was $3.15 billion as of June 30, 2020, representing approximately 27% of the Company's total enterprise value as of June 30, 2020 of $11.7 billion, or 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). After further adjusting Adjusted EBITDA to exclude the impact of the adoption of ASC 842 as of January 1, 2019, in order to present the leverage metric on a basis comparable to that of periods prior to 2019, net debt to Adjusted EBITDA for the last quarter annualized was 4.9x11. Available liquidity12 was $1.54 billion as of June 30, 2020.

During the second quarter of 2020, the Company entered into forward sale agreements through the ATM equity program with respect to approximately 4.2 million shares of common stock, which will result in estimated net proceeds of approximately $292 million upon settlement by May 2021. Combined with the forward sale agreement entered into in the first quarter of 2020, which will result in estimated net proceeds of approximately $121 million upon settlement by March 2021, the Company has $413 million in available forward equity (no portion of the forward sale agreements entered into during the first and second quarters of 2020 has been settled as of July 29, 2020). During the second quarter of 2020, the Company settled the forward sale agreement entered into in the fourth quarter of 2019, resulting in net proceeds of approximately $97 million, which were used to pay down a portion of amounts outstanding on the Company’s unsecured revolving credit facility.

Also during the second quarter of 2020, the Company entered into sales agreements pursuant to which the Company 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, 2020, there was approximately $450 million in remaining availability under the new ATM equity program.

Additionally, the Company raised approximately $20 million through the sale of approximately 0.2 million American depository shares (“ADSs”) of GDS. The settlement of a portion of the ADSs and receipt of the associated proceeds occurred in July 2020. After taking into account the impact of the sale of ADSs, CyrusOne owned approximately 2.1 million ADSs with a total value of approximately $164 million based on GDS’s share price as of June 30, 2020.

Dividend

On April 29, 2020, the Company announced a dividend of $0.50 per share of common stock for the second quarter of 2020. The dividend was paid on July 10, 2020, to stockholders of record at the close of business on June 26, 2020.

Additionally, today the Company is announcing a dividend of $0.51 per share of common stock for the third quarter of 2020, a 2% increase in the quarterly dividend compared to the second quarter of 2020. The dividend will be paid on October 9, 2020, to stockholders of record at the close of business on September 25, 2020.

Guidance

CyrusOne is updating guidance for full year 2020, increasing the upper and lower ends of the guidance range for Capital Expenditures and Capital Expenditures - Development and reaffirming its other guidance ranges. 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. The COVID-19 pandemic continues to evolve rapidly and the potential impact on our business remains uncertain and unpredictable.

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 loss on disposal of assets and other charges in its reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.

Category

Previous 2020
Guidance

 

Current 2020
Guidance

Total Revenue

$1,010 - 1,045 million

 

$1,010 - 1,045 million

Lease and Other Revenues from Customers

$865 - 890 million

 

$865 - 890 million

Metered Power Reimbursements

$145 - 155 million

 

$145 - 155 million

Adjusted EBITDA

$525 - 550 million

 

$525 - 550 million

Normalized FFO per diluted common share

$3.75 - 3.90

 

$3.75 - 3.90

Capital Expenditures

$750 - 850 million

 

$850 - 950 million

Development(1)

$735 - 830 million

 

$835 - 930 million

Recurring

$15 - 20 million

 

$15 - 20 million

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

Announcing Retirement of Diane Morefield, Executive Vice President & Chief Financial Officer

CyrusOne is also announcing today that following a successful 40 year career, including the last four years with the company, Diane Morefield plans to retire in early 2021. Ms. Morefield will continue in her role as Executive Vice President & Chief Financial Officer until her successor is appointed, which is targeted to be by December 31, 2020. She will remain with the company during a transition period until her retirement date on March 1, 2021. CyrusOne is conducting a search for its next CFO, which will include consideration of internal and external candidates.

“On behalf of the entire Board and the management team, we thank Diane for her many contributions to CyrusOne since she joined the company in 2016,” said Duncan. “She has been instrumental in the company’s growth, and her leadership will be missed. We are grateful that she has agreed to remain with the company to facilitate a smooth transition. We wish Diane nothing but the best in her retirement.”

“It has been a privilege to be part of the success story at CyrusOne,” said Morefield. “I’m proud of the team we have built and the financial foundation we have set to continue to support the future growth of the company. I look forward to ensuring a smooth transition.”

Upcoming Conferences and Events

  • Cowen Virtual Communications Infrastructure Summit on August 11-12
  • BMO Capital Markets Virtual Real Assets Conference on September 2-3
  • Deutsche Bank Technology Conference on September 14-15 in San Francisco, CA*
  • Bank of America Merrill Lynch 2020 Global Real Estate Conference on September 15-16 in New York City*
  • Raymond James Park City Summit on September 21-22 in Park City, UT

*Tentative as conference may be virtual

Conference Call Details

CyrusOne will host a conference call on July 30, 2020, at 11:00 AM Eastern Time (10:00 AM Central Time) to discuss its results for the second quarter 2020. 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 30, 2020, through August 13, 2020. 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 10145802.

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 Zenium Topco Ltd. and certain other affiliated entities (“Zenium”); (ix) our failure to obtain necessary outside financing on favorable terms, or at all; (x) restrictions in the instruments governing our indebtedness; (xi) risks related to environmental matters; (xii) unknown or contingent liabilities related to our acquisitions; (xiii) significant competition in our industry; (xiv) loss of key personnel; (xv) risks associated with real estate assets and the industry; (xvi) 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; (xvii) REIT distribution requirements could adversely affect our ability to execute our business plan; (xviii) insufficient cash available for distribution to stockholders; (xix) future offerings of debt may adversely affect the market price of our common stock; (xx) increases in market interest rates will increase our borrowings costs and may drive potential investors to seek higher dividend yields and reduce demand for our common stock; (xxi) market price and volume of stock could be volatile; (xxii) risks related to regulatory changes impacting our customers and demand for colocation space in particular geographies; (xxiii) our international activities, including those now conducted as a result of the Zenium acquisition and land acquisitions, are subject to special risks different from those faced by us in the United States; (xxiv) the significant uncertainty that remains about the future relationship between the United Kingdom and the European Union as a result of the United Kingdom’s withdrawal from the European Union; (xxv) expanded and widened price increases in certain selective materials for data center development capital expenditures due to international trade negotiations; (xxvi) a failure to comply with anti-corruption laws and regulations; (xxvii) legislative or other actions relating to taxes; and (xxviii) 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.

Adoption of New Accounting Standard and Use of Non-GAAP Financial Measures and Other Metrics

In February 2016, the Financial Accounting Standards Board issued ASU 2016-02 (codified in ASC 842, Leases (“ASC 842”)) to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing transactions. The ASU requires that a liability be recorded on the balance sheet for all leases where the reporting entity is a lessee, based on the present value of future lease obligations. A corresponding right-of-use asset will also be recorded. Amortization of the lease obligation and the right-of-use asset for leases classified as operating leases are on a straight-line basis. Leases classified as financing leases are required to be accounted for as financing arrangements similar to the accounting treatment for capital leases under ASC 840, Leases (the former accounting standard for all leases).

We adopted ASU 2016-02 on January 1, 2019, applied the package of practical expedients included therein and utilized the modified retrospective transition method with the cumulative effect of transition recognized on the effective date. By applying the modified retrospective transition method, the presentation of financial information for periods prior to January 1, 2019 was not restated.

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.

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 115.7 million for the second quarter of 2020 and 113.1 million for the second quarter of 2019.

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 (loss), 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) loss on marketable equity investment, Loss on early extinguishment of debt, Impairment losses, Foreign currency and derivative losses, net, Other (income) expense, Income tax benefit 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.

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 ; Depreciation and amortization expenses; 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 losses (gains), net; Other expense (income) and other items as appropriate. 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 gain on disposal of assets. 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) loss on marketable equity investment; Foreign currency and derivative losses (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.

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.

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 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.

11The estimated impact of the adoption of ASC 842 on Adjusted EBITDA for the last quarter annualized is $15.8 million.

12Liquidity 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 CyrusOne

CyrusOne (NASDAQ: CONE) is a real estate investment trust (REIT) specializing in highly reliable enterprise-class, carrier-neutral data center properties. The Company provides mission-critical data center facilities that protect and ensure the continued operation of IT infrastructure for approximately 1,000 customers, including approximately 200 Fortune 1000 companies. 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, CyrusOne provides the flexibility, reliability, security, and connectivity that foster business growth. CyrusOne offers a tailored, customer service-focused platform and is committed to full transparency in communication, management, and service delivery throughout its more than 50 data centers worldwide. Additional information about CyrusOne can be found at www.CyrusOne.com.

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 Headquarters

Senior Management

 

2850 N. Harwood Street, Ste. 2200

Bruce Duncan, President and CEO

John Gould, EVP & Chief Commercial Officer

Dallas, Texas 75201

Diane Morefield, EVP & Chief Financial Officer

Kellie Teal-Guess, EVP & Chief People Officer

Phone: (972) 350-0060

Kevin Timmons, EVP & Chief Technology Officer

Robert Jackson, EVP General Counsel & Secretary

Website: www.cyrusone.com

Jonathan Schildkraut, EVP & Chief Strategy Officer

Matt Pullen, EVP & Managing Director, Europe

Analyst Coverage

 

Firm

Analyst

Phone Number

Bank of America Merrill Lynch

Michael J. Funk

(646) 855-5664

Barclays

Tim Long

(212) 526-4043

Berenberg Capital Markets

Nate Crossett

(646) 949-9030

BMO Capital Markets

Ari Klein

(212) 885-4103

Citi

Mike Rollins

(212) 816-1116

Cowen and Company

Colby Synesael

(646) 562-1355

Credit Suisse

Sami Badri

(212) 538-1727

Deutsche Bank

Matthew Niknam

(212) 250-4711

Green Street Advisors

David Guarino

(949) 640-8780

Jefferies

Jonathan Petersen

(212) 284-1705

J.P. Morgan

Richard Choe

(212) 622-6708

KeyBanc Capital Markets

Jordan Sadler

(917) 368-2280

MoffettNathanson

Nick Del Deo, CFA

(212) 519-0025

Morgan Stanley

Simon Flannery

(212) 761-6432

RBC Capital Markets

Jonathan Atkin

(415) 633-8589

Raymond James

Frank G. Louthan IV

(404) 442-5867

Stifel

Erik Rasmussen

(212) 271-3461

SunTrust Robinson Humphrey

Greg Miller

(212) 303-4169

UBS

John C. Hodulik, CFA

(212) 713-4226

Wells Fargo

Eric Luebchow

(312) 630-2386

William Blair

Jim Breen, CFA

(617) 235-7513

CyrusOne Inc.

Summary of Financial Data

(Dollars in millions, except per share amounts)

 

 

 

Three Months

 

June 30,

March 31,

June 30,

Growth %

2020

2020

2019

Yr/Yr

Revenue

$

256.4

 

$

245.9

 

$

251.5

 

2

%

Net operating income

 

157.4

 

 

153.3

 

 

148.2

 

6

%

Net income (loss)

 

45.0

 

 

14.7

 

 

(8.5

)

n/m

 

Funds from Operations ("FFO") - Nareit defined

 

154.9

 

 

120.4

 

 

91.7

 

69

%

Normalized Funds from Operations ("Normalized FFO")

 

118.9

 

 

111.8

 

 

102.1

 

16

%

Weighted average number of common shares outstanding - diluted for Normalized FFO

 

115.7

 

 

115.1

 

 

113.1

 

2

%

Income (loss) per share - basic

$

0.39

 

$

0.13

 

$

(0.08

)

n/m

 

Income (loss) per share - diluted

$

0.39

 

$

0.13

 

$

(0.08

)

n/m

 

Normalized FFO per diluted common share

$

1.03

 

$

0.97

 

$

0.90

 

14

%

Adjusted EBITDA

$

136.8

 

$

132.2

 

$

127.3

 

7

%

Adjusted EBITDA as a % of Revenue

 

53.4

%

 

53.8

%

 

50.6

%

2.8 pts

 

 

 

As of

 

June 30,

March 31,

June 30,

 

Growth %

2020

2020

2019

Yr/Yr

Balance Sheet Data

 

 

 

 

Gross investment in real estate

$

6,504.9

 

$

6,260.9

 

$

5,707.0

 

14

%

Accumulated depreciation

 

(1,562.7

)

 

(1,469.5

)

 

(1,207.4

)

29

%

Total investment in real estate, net

 

4,942.2

 

 

4,791.4

 

 

4,499.6

 

10

%

Cash and cash equivalents

 

70.7

 

 

57.3

 

 

144.1

 

(51

)%

Market value of common equity

 

8,501.0

 

 

7,102.1

 

 

6,532.5

 

30

%

Long-term debt

 

3,191.3

 

 

3,084.0

 

 

2,729.9

 

17

%

Net debt

 

3,149.4

 

 

3,056.1

 

 

2,617.4

 

20

%

Total enterprise value

 

11,650.4

 

 

10,158.2

 

 

9,149.9

 

27

%

Net debt to LQA Adjusted EBITDA(a)

5.0x

5.4x

5.1x

(0.1)x

 

Dividend Activity

 

 

 

 

Dividends per share

$

0.50

 

$

0.50

 

$

0.46

 

9

%

 

Portfolio Statistics

 

 

 

 

Data centers

 

51

 

 

48

 

 

47

 

9

%

Stabilized CSF (000)

 

4,055

 

 

4,035

 

 

3,744

 

8

%

Stabilized CSF % leased

 

88

%

 

88

%

 

89

%

(1) pts

Total CSF (000)

 

4,427

 

 

4,215

 

 

4,116

 

8

%

Total CSF % leased

 

83

%

 

86

%

 

84

%

(1) pts

Total GSF (000)

 

7,605

 

 

7,243

 

 

7,085

 

7

%

(a)

June 30, 2020 and March 31, 2020 periods adjusted to reflect the pro forma impact of settlement of the forward sale agreements.

CyrusOne Inc.

Condensed Consolidated Statements of Operations

(Dollars in millions, except per share amounts)

(Unaudited)

 

 

Three Months
Ended June 30,

 

Change

Six Months
Ended June 30,

 

Change

 

2020

2019

$

%

2020

2019

$

%

Revenue(a)

$

256.4

 

$

251.5

$

4.9

 

2

%

$

502.3

 

$

476.5

 

$

25.8

 

5

%

Operating expenses:

 

 

 

 

 

 

 

 

Property operating expenses

 

99.0

 

 

103.3

 

 

(4.3

)

(4

)%

 

191.6

 

 

186.6

 

 

5.0

 

3

%

Sales and marketing

 

3.8

 

 

5.3

 

 

(1.5

)

(28

)%

 

8.5

 

 

10.6

 

 

(2.1

)

(20

)%

General and administrative

 

20.3

 

 

19.7

 

 

0.6

 

3

%

 

47.2

 

 

41.9

 

 

5.3

 

13

%

Depreciation and amortization

 

109.7

 

 

102.1

 

 

7.6

 

7

%

 

217.8

 

 

204.2

 

 

13.6

 

7

%

Transaction, acquisition, integration and other related expenses

 

0.1

 

1.4

 

 

(1.3

)

(93

)%

 

0.5

 

 

1.7

 

 

(1.2

)

(71

)%

Impairment losses

 

2.4

 

 

 

 

2.4

 

n/m

 

2.4

 

 

 

 

2.4

 

n/m

Total operating expenses

 

235.3

 

 

231.8

 

 

3.5

 

2

%

 

468.0

 

 

445.0

 

 

23.0

 

5

%

Operating income

 

21.1

 

 

19.7

 

 

1.4

 

7

%

 

34.3

 

 

31.5

 

 

2.8

 

9

%

Interest expense, net

 

(13.9

)

 

(21.1

)

 

7.2

 

(34

)%

 

(29.9

)

 

(44.8

)

 

14.9

 

(33

)%

Gain (loss) on marketable equity investment

 

50.4

 

 

(8.5

)

 

58.9

 

n/m

 

65.1

 

 

92.7

 

 

(27.6

)

(30

)%

Loss on early extinguishment of debt

 

 

 

 

 

 

n/m

 

(3.4

)

 

 

 

(3.4

)

n/m

Foreign currency and derivative losses, net

 

(13.9

)

 

 

 

(13.9

)

n/m

 

(8.8

)

 

 

 

(8.8

)

n/m

Other income (expense)

 

0.1

 

 

 

 

0.1

 

n/m

 

 

 

(0.1

)

 

0.1

 

(100

)%

Net income (loss) before income taxes

 

43.8

 

 

(9.9

)

 

53.7

 

n/m

 

57.3

 

 

79.3

 

 

(22.0

)

(28

)%

Income tax benefit

 

1.2

 

 

1.4

 

 

(0.2

)

(14

)%

 

2.4

 

 

1.6

 

 

0.8

 

50

%

Net income (loss)

$

45.0

 

$

(8.5

)

$

53.5

 

n/m

$

59.7

 

$

80.9

 

$

(21.2

)

(26

)%

Income (loss) per share - basic

$

0.39

 

$

(0.08

)

$

0.47

 

n/m

$

0.52

 

$

0.73

 

$

(0.21

)

(29

)%

Income (loss) per share - diluted

$

0.39

 

$

(0.08

)

$

0.47

 

n/m

$

0.52

 

$

0.73

 

$

(0.21

)

(29

)%

(a)

Revenue includes metered power reimbursements of $37.1 million and $31.7 million for the three months ended June 30, 2020 and 2019, respectively, and includes metered power reimbursements of $71.9 million and $60.3 million for the six months ended June 30, 2020 and 2019, respectively.

CyrusOne Inc.

Condensed Consolidated Balance Sheets

(Dollars in millions)

(Unaudited)

 

 

June 30,

December 31,

Change

 

2020

2019

$

%

Assets

 

 

 

 

Investment in real estate:

 

 

 

 

Land

$

175.5

 

$

147.6

 

$

27.9

 

19

%

Buildings and improvements

 

1,857.9

 

 

1,761.4

 

 

96.5

 

5

%

Equipment

 

3,229.5

 

 

3,028.2

 

 

201.3

 

7

%

Gross operating real estate

 

5,262.9

 

 

4,937.2

 

 

325.7

 

7

%

Less accumulated depreciation

 

(1,562.7

)

 

(1,379.2

)

 

(183.5

)

13

%

Net operating real estate

 

3,700.2

 

 

3,558.0

 

 

142.2

 

4

%

Construction in progress, including land under development

 

1,024.8

 

 

946.3

 

 

78.5

 

8

%

Land held for future development

 

217.2

 

 

206.0

 

 

11.2

 

5

%

Total investment in real estate, net

 

4,942.2

 

 

4,710.3

 

 

231.9

 

5

%

Cash and cash equivalents

 

70.7

 

 

76.4

 

 

(5.7

)

(7

)%

Rent and other receivables, net

 

307.0

 

 

291.9

 

 

15.1

 

5

%

Restricted cash

 

1.3

 

 

1.3

 

 

 

n/m

Operating lease right-of-use assets, net

 

204.7

 

 

161.9

 

 

42.8

 

26

%

Equity investments

 

184.9

 

 

135.1

 

 

49.8

 

37

%

Goodwill

 

455.1

 

 

455.1

 

 

 

n/m

Intangible assets, net

174.9

196.1

(21.2

)

(11

)%

Other assets

 

127.3

 

 

113.9

 

 

13.4

 

12

%

Total assets

$

6,468.1

 

$

6,142.0

 

$

326.1

 

5

%

Liabilities and equity

Debt

$

3,156.9

 

$

2,886.6

 

$

270.3

 

9

%

Finance lease liabilities

 

28.8

 

 

31.8

 

 

(3.0

)

(9

)%

Operating lease liabilities

 

240.5

 

 

195.8

 

 

44.7

 

23

%

Construction costs payable

 

155.7

 

 

176.3

 

 

(20.6

)

(12

)%

Accounts payable and accrued expenses

 

127.0

 

 

122.7

 

 

4.3

 

4

%

Dividends payable

 

59.7

 

 

58.6

 

 

1.1

 

2

%

Deferred revenue and prepaid rents

 

166.2

 

 

163.7

 

 

2.5

 

2

%

Deferred tax liability

 

55.8

 

 

60.5

 

 

(4.7

)

(8

)%

Other liabilities

 

16.8

 

 

11.4

 

 

5.4

 

47

%

Total liabilities

 

4,007.4

 

 

3,707.4

 

 

300.0

 

8

%

Stockholders' equity

 

 

 

 

Preferred stock, $.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 116,852,894 and 114,808,898 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively

 

1.2

 

 

1.1

 

 

0.1

 

9.1

%

Additional paid in capital

 

3,305.9

 

 

3,202.0

 

 

103.9

 

3

%

Accumulated deficit

 

(824.7

)

 

(767.3

)

 

(57.4

)

7

%

Accumulated other comprehensive loss

 

(21.7

)

 

(1.2

)

 

(20.5

)

n/m

Total stockholders’ equity

 

2,460.7

 

 

2,434.6

 

 

26.1

 

1

%

Total liabilities and equity

$

6,468.1

 

$

6,142.0

 

$

326.1

 

5

%

CyrusOne Inc.

Condensed Consolidated Statements of Operations

(Dollars in millions, except per share amounts)

(Unaudited)

 
For the three months ended:

June 30,
2020

March 31,
2020

December 31,
2019

September 30,
2019

June 30,
2019

Revenue(a)

$

256.4

 

$

245.9

 

$

253.9

 

$

250.9

 

$

251.5

 

Operating expenses:

 

 

 

 

 

Property operating expenses

 

99.0

 

 

92.6

 

 

93.8

 

 

103.0

 

 

103.3

 

Sales and marketing

 

3.8

 

 

4.7

 

 

4.5

 

 

5.1

 

 

5.3

 

General and administrative

 

20.3

 

 

26.9

 

 

21.8

 

 

19.8

 

 

19.7

 

Depreciation and amortization

 

109.7

 

 

108.1

 

 

108.1

 

 

105.4

 

 

102.1

 

Transaction, acquisition, integration and other related expenses

 

0.1

 

 

0.4

 

 

2.7

 

 

4.4

 

 

1.4

 

Impairment losses

 

2.4

 

 

 

 

0.7

 

 

 

 

 

Total operating expenses

 

235.3

 

 

232.7

 

 

231.6

 

 

237.7

 

 

231.8

 

Operating income

 

21.1

 

 

13.2

 

 

22.3

 

 

13.2

 

 

19.7

 

Interest expense, net

 

(13.9

)

 

(16.0

)

 

(17.6

)

 

(19.6

)

 

(21.1

)

Gain (loss) on marketable equity investment

 

50.4

 

 

14.7

 

 

27.2

 

 

12.4

 

 

(8.5

)

Loss on early extinguishment of debt

 

 

 

(3.4

)

 

(71.8

)

 

 

 

 

Foreign currency and derivative (losses) gains, net

 

(13.9

)

 

5.1

 

 

(13.0

)

 

5.5

 

 

 

Other income (expense)

 

0.1

 

 

(0.1

)

 

0.7

 

 

(0.9

)

 

 

Net income (loss) before income taxes

 

43.8

 

 

13.5

 

 

(52.2

)

 

10.6

 

 

(9.9

)

Income tax benefit

 

1.2

 

 

1.2

 

 

0.1

 

 

2.0

 

 

1.4

 

Net income (loss)

$

45.0

 

$

14.7

 

$

(52.1

)

$

12.6

 

$

(8.5

)

Income (loss) per share - basic

$

0.39

 

$

0.13

 

$

(0.46

)

$

0.11

 

$

(0.08

)

Income (loss) per share - diluted

$

0.39

 

$

0.13

 

$

(0.46

)

$

0.11

 

$

(0.08

)

(a)

Revenue includes metered power reimbursements of $37.1 million, $34.8 million, $37.5 million, $41.1 million and $31.7 million for the three months ended June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019 and June 30, 2019, respectively.

CyrusOne Inc.

Condensed Consolidated Balance Sheets

(Dollars in millions)

(Unaudited)

 

 

June 30,
2020

March 31,
2020

December 31,
2019

September 30,
2019

June 30,
2019

Assets

 

 

 

 

 

Investment in real estate:

 

 

 

 

 

Land

$

175.5

 

$

172.2

 

$

147.6

 

$

147.3

 

$

148.0

 

Buildings and improvements

 

1,857.9

 

 

1,786.3

 

 

1,761.4

 

 

1,732.0

 

 

1,689.7

 

Equipment

 

3,229.5

 

 

3,106.4

 

 

3,028.2

 

 

2,950.3

 

 

2,869.7

 

Gross operating real estate

 

5,262.9

 

 

5,064.9

 

 

4,937.2

 

 

4,829.6

 

 

4,707.4

 

Less accumulated depreciation

 

(1,562.7

)

 

(1,469.5

)

 

(1,379.2

)

 

(1,292.7

)

 

(1,207.4

)

Net operating real estate

 

3,700.2

 

 

3,595.4

 

 

3,558.0

 

 

3,536.9

 

 

3,500.0

 

Construction in progress, including land under development

 

1,024.8

 

 

990.6

 

 

946.3

 

 

836.9

 

 

799.2

 

Land held for future development

 

217.2

 

 

205.4

 

 

206.0

 

 

204.3

 

 

200.4

 

Total investment in real estate, net

 

4,942.2

 

 

4,791.4

 

 

4,710.3

 

 

4,578.1

 

 

4,499.6

 

Cash and cash equivalents

 

70.7

 

 

57.3

 

 

76.4

 

 

51.7

 

 

144.1

 

Rent and other receivables, net

 

307.0

 

 

305.3

 

 

291.9

 

 

279.3

 

 

268.4

 

Restricted cash

 

1.3

 

 

1.3

 

 

1.3

 

 

1.3

 

 

1.3

 

Operating lease right-of-use assets, net

 

204.7

 

 

208.6

 

 

161.9

 

 

90.7

 

 

78.5

 

Equity investments

 

184.9

 

 

153.1

 

 

135.1

 

 

104.3

 

 

91.9

 

Goodwill

 

455.1

 

 

455.1

 

 

455.1

 

 

455.1

 

 

455.1

 

Intangible assets, net

 

174.9

 

 

184.5

 

 

196.1

 

 

203.7

 

 

215.3

 

Other assets

 

127.3

 

 

121.9

 

 

113.9

 

 

128.7

 

 

115.5

 

Total assets

$

6,468.1

 

$

6,278.5

 

$

6,142.0

 

$

5,892.9

 

$

5,869.7

 

Liabilities and equity

 

 

 

 

 

Debt

$

3,156.9

 

$

3,047.0

 

$

2,886.6

 

$

2,776.1

 

$

2,713.8

 

Finance lease liabilities

 

28.8

 

 

29.4

 

 

31.8

 

 

30.7

 

 

31.6

 

Operating lease liabilities

 

240.5

 

 

243.0

 

 

195.8

 

 

124.3

 

 

114.1

 

Construction costs payable

 

155.7

 

 

183.4

 

 

176.3

 

 

131.2

 

 

149.5

 

Accounts payable and accrued expenses

 

127.0

 

 

121.0

 

 

122.7

 

 

132.4

 

 

112.8

 

Dividends payable

 

59.7

 

 

58.7

 

 

58.6

 

 

57.7

 

 

53.0

 

Deferred revenue and prepaid rents

 

166.2

 

 

167.3

 

 

163.7

 

 

164.0

 

 

166.8

 

Deferred tax liability

 

55.8

 

 

57.0

 

 

60.5

 

 

59.6

 

 

65.5

 

Other liabilities

 

16.8

 

 

7.9

 

 

11.4

 

 

 

 

 

Total liabilities

 

4,007.4

 

 

3,914.7

 

 

3,707.4

 

 

3,476.0

 

 

3,407.1

 

Stockholders' equity

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

Common stock, $0.01 par value, 500,000,000 shares authorized and 116,852,894 and 114,808,898 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively

 

 

 

1.2

 

 

 

 

 

1.2

 

 

 

 

 

1.1

 

 

 

 

 

1.1

 

 

 

 

 

1.1

 

 

Additional paid in capital

 

3,305.9

 

 

3,199.9

 

 

3,202.0

 

 

3,094.2

 

 

3,089.5

 

Accumulated deficit

 

(824.7

)

 

(811.0

)

 

(767.3

)

 

(657.4

)

 

(613.0

)

Accumulated other comprehensive loss

 

(21.7

)

 

(26.3

)

 

(1.2

)

 

(21.0

)

 

(15.0

)

Total stockholders' equity

 

2,460.7

 

 

2,363.8

 

 

2,434.6

 

 

2,416.9

 

 

2,462.6

 

Total liabilities and equity

$

6,468.1

 

$

6,278.5

 

$

6,142.0

 

$

5,892.9

 

$

5,869.7

 

CyrusOne Inc.

Condensed Consolidated Statements of Cash Flow

(Dollars in millions)

(Unaudited)

 

Six Months

 

Six Months

 

Three Months

 

Three Months

Ended June 30,

 

Ended June 30,

 

Ended June 30,

 

Ended June 30,

2020

 

2019

 

2020

 

2019

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

59.7

 

$

80.9

 

$

45.0

 

$

(8.5

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

217.8

 

 

204.2

 

 

109.7

 

 

102.1

 

Provision for bad debt expense

 

 

 

(0.3

)

 

0.1

 

 

(0.3

)

(Gain) loss on marketable equity investment

 

(65.1

)

 

(92.7

)

 

(50.4

)

 

8.5

 

Foreign currency and derivative losses, net

 

8.8

 

 

 

 

13.9

 

 

 

Proceeds from swap terminations

 

2.9

 

 

 

 

 

 

 

Impairment on land held for future development

 

2.2

 

 

 

 

2.2

 

 

 

Loss on early extinguishment of debt

 

3.4

 

 

 

 

 

 

 

Interest expense amortization, net

 

3.6

 

 

2.3

 

 

1.6

 

 

1.1

 

Stock-based compensation expense

 

7.0

 

 

8.2

 

 

3.3

 

 

3.7

 

Deferred income tax benefit

 

(4.2

)

 

(3.4

)

 

(2.2

)

 

(2.6

)

Operating lease cost

 

13.0

 

 

9.6

 

 

6.8

 

 

4.6

 

Other income (expense)

 

0.5

 

 

(0.2

)

 

0.3

 

 

0.3

 

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Rent and other receivables, net and other assets

 

(31.0

)

 

(41.1

)

 

(1.6

)

 

(23.1

)

Accounts payable and accrued expenses

 

4.7

 

 

(8.2

)

 

5.9

 

 

31.6

 

Deferred revenue and prepaid rents

 

2.0

 

 

18.0

 

 

(1.2

)

 

10.9

 

Operating lease liabilities

 

(11.1

)

 

(9.8

)

 

(5.5

)

 

(4.7

)

Net cash provided by operating activities

 

214.2

 

 

167.5

 

 

127.9

 

 

123.6

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Investments in real estate

 

(458.0

)

 

(514.8

)

 

(261.5

)

 

(212.9

)

Proceeds from sale of equity investments

 

8.2

 

 

199.8

 

 

8.2

 

 

199.8

 

Equity investments

 

(4.7

)

 

(0.3

)

 

(1.4

)

 

(0.3

)

Proceeds from the sale of real estate assets

 

0.3

 

 

 

 

0.3

 

 

 

Net cash used in investing activities

 

(454.2

)

 

(315.3

)

 

(254.4

)

 

(13.4

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock, net

 

103.3

 

 

252.6

 

 

102.7

 

 

147.6

 

Dividends paid

 

(116.1

)

 

(101.3

)

 

(57.7

)

 

(50.9

)

Payment of deferred financing costs

 

(12.5

)

 

 

 

1.1

 

 

 

Proceeds from revolving credit facility

 

438.8

 

 

287.8

 

 

194.4

 

 

12.1

 

Repayments of revolving credit facility

 

(723.1

)

 

 

 

(100.0

)

 

 

Proceeds from Euro bond

 

550.2

 

 

 

 

(0.4

)

 

 

Proceeds from unsecured term loan

 

1,100.0

 

 

 

 

 

 

 

Repayments of unsecured term loan

 

(1,100.0

)

 

(200.0

)

 

 

 

(200.0

)

Payments on finance lease liabilities

 

(1.3

)

 

(1.2

)

 

(0.6

)

 

(0.6

)

Tax payment upon exercise of equity awards

 

(6.4

)

 

(8.8

)

 

(0.1

)

 

(0.1

)

Net cash provided by (used in) financing activities

 

232.9

 

 

229.1

 

 

139.4

 

 

(91.9

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

1.4

 

 

(0.3

)

 

0.5

 

 

(0.2

)

Net (decrease) increase in cash, cash equivalents and restricted cash

 

(5.7

)

 

81.0

 

 

13.4

 

 

18.1

 

Cash, cash equivalents and restricted cash at beginning of period

 

77.7

 

 

64.4

 

 

58.6

 

 

127.3

 

Cash, cash equivalents and restricted cash at end of period

$

72.0

 

$

145.4

 

$

72.0

 

$

145.4

 

Supplemental disclosure of cash flow information:

Cash paid for interest, including amounts capitalized of $11.4 million and $18.1 million in 2020 and 2019, respectively

$

30.0

 

$

62.7

 

$

21.7

 

$

16.0

 

Cash paid for income taxes

 

0.1

 

 

2.8

 

 

0.1

 

 

2.8

 

Non-cash investing and financing activities:

 

 

 

 

Construction costs payable

 

155.7

 

 

149.5

 

 

155.7

 

 

149.5

 

Dividends payable

 

59.7

 

 

53.0

 

 

59.7

 

 

53.0

 

CyrusOne Inc.

Reconciliation of Net Income (Loss) to Net Operating Income

(Dollars in millions)

(Unaudited)

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

Change

June 30,

Change

 

2020

2019

$

%

2020

2019

$

%

Net income (loss)

$

45.0

 

$

(8.5

)

$

53.5

 

n/m

$

59.7

 

$

80.9

 

$

(21.2

)

(26

)%

Sales and marketing expenses

 

3.8

 

 

5.3

 

 

(1.5

)

(28

)%

 

8.5

 

 

10.6

 

 

(2.1

)

(20

)%

General and administrative expenses

 

20.3

 

 

19.7

 

 

0.6

 

3

%

 

47.2

 

 

41.9

 

 

5.3

 

13

%

Depreciation and amortization expenses

 

109.7

 

 

102.1

 

 

7.6

 

7

%

 

217.8

 

 

204.2

 

 

13.6

 

7

%

Transaction, acquisition, integration and other related expenses

 

0.1

 

 

1.4

 

 

(1.3

)

(93

)%

 

0.5

 

 

1.7

 

 

(1.2

)

(71

)%

Interest expense, net

 

13.9

 

 

21.1

 

 

(7.2

)

(34

)%

 

29.9

 

 

44.8

 

 

(14.9

)

(33

)%

(Gain) loss on marketable equity investment

 

(50.4

)

 

8.5

 

 

(58.9

)

n/m

 

(65.1

)

 

(92.7

)

 

27.6

 

(30

)%

Loss on early extinguishment of debt

 

 

 

 

 

 

n/m

 

3.4

 

 

 

 

3.4

 

n/m

Impairment losses

 

2.4

 

 

 

 

2.4

 

n/m

 

2.4

 

 

 

 

2.4

 

n/m

Foreign currency and derivative losses, net

 

13.9

 

 

 

 

13.9

 

n/m

 

8.8

 

 

 

 

8.8

 

n/m

Other (income) expense

 

(0.1

)

 

 

 

(0.1

)

n/m

 

 

 

0.1

 

 

(0.1

)

n/m

Income tax benefit

 

(1.2

)

 

(1.4

)

 

0.2

 

(14

)%

 

(2.4

)

 

(1.6

)

 

(0.8

)

50

%

Net Operating Income

$

157.4

 

$

148.2

 

$

9.2

 

6

%

$

310.7

 

$

289.9

 

$

20.8

 

7

%

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,

 

Change

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

2020

 

2019

 

$

 

%

 

2020

 

2020

 

2019

 

2019

 

2019

Net Operating Income

 

 

 

 

 

 

 

 

 

Revenue

$

502.3

 

$

476.5

 

$

25.8

 

5

%

$

256.4

 

$

245.9

 

$

253.9

 

$

250.9

 

$

251.5

 

Property operating expenses

 

191.6

 

 

186.6

 

 

5.0

 

3

%

 

99.0

 

 

92.6

 

 

93.8

 

 

103.0

 

 

103.3

 

Net Operating Income (NOI)

$

310.7

 

$

289.9

 

$

20.8

 

7

%

$

157.4

 

$

153.3

 

$

160.1

 

$

147.9

 

$

148.2

 

NOI as a % of Revenue

 

61.9

%

 

60.8

%

 

 

 

61.4

%

 

62.3

%

 

63.1

%

 

58.9

%

 

58.9

%

Reconciliation of Net Income (Loss) to Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

Net income (loss)

$

59.7

 

$

80.9

 

$

(21.2

)

(26

)%

$

45.0

 

$

14.7

 

$

(52.1

)

$

12.6

 

$

(8.5

)

Interest expense, net

 

29.9

 

 

44.8

 

 

(14.9

)

(33

)%

 

13.9

 

 

16.0

 

 

17.6

 

 

19.6

 

 

21.1

 

Income tax benefit

 

(2.4

)

 

(1.6

)

 

(0.8

)

50

 

(1.2

)

 

(1.2

)

 

(0.1

)

 

(2.0

)

 

(1.4

)

Depreciation and amortization expenses

 

217.8

 

 

204.2

 

 

13.6

 

7

%

 

109.7

 

 

108.1

 

 

108.1

 

 

105.4

 

 

102.1

 

Impairment losses

 

2.4

 

 

 

 

2.4

 

n/m

 

2.4

 

 

 

 

0.7

 

 

 

 

 

EBITDA (Nareit definition) (a)

$

307.4

 

$

328.3

 

$

(20.9

)

(6

)%

$

169.8

 

$

137.6

 

$

74.2

 

$

135.6

 

$

113.3

 

Transaction, acquisition, integration and other related expenses

 

0.5

 

 

1.7

 

 

(1.2

)

(71

)%

 

0.1

 

 

0.4

 

 

2.7

 

 

4.4

 

 

1.4

 

Legal claim costs

 

0.2

 

 

0.2

 

 

 

n/m

 

0.1

 

 

0.1

 

 

0.5

 

 

0.4

 

 

0.1

 

Stock-based compensation expense

 

6.9

 

 

8.2

 

 

(1.3

)

(16

)%

 

3.4

 

 

3.5

 

 

4.3

 

 

4.2

 

 

3.7

 

Cash severance and management transition costs

 

6.8

 

 

0.1

 

 

6.7

 

n/m

 

 

 

6.8

 

 

(0.7

)

 

 

 

 

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

 

 

 

0.6

 

 

(0.6

)

n/m

 

 

 

 

 

 

 

0.2

 

 

0.3

 

(Gain) loss on marketable equity investment

 

(65.1

)

 

(92.7

)

 

27.6

 

(30

)%

 

(50.4

)

 

(14.7

)

 

(27.2

)

 

(12.4

)

 

8.5

 

Foreign currency and derivative losses (gains), net

 

8.8

 

 

 

 

8.8

 

n/m

 

13.9

 

 

(5.1

)

 

13.0

 

 

(5.5

)

 

 

Other expense (income)

 

 

 

0.1

 

 

(0.1

)

n/m

 

(0.1

)

 

0.1

 

 

(0.7

)

 

0.9

 

 

 

Adjusted EBITDA

$

269.0

 

$

246.5

 

$

22.5

 

9

%

$

136.8

 

$

132.2

 

$

137.9

 

$

127.8

 

$

127.3

 

Adjusted EBITDA as a % of Revenue

 

53.6

%

 

51.7

%

 

 

 

53.4

%

 

53.8

%

 

54.3

%

 

50.9

%

 

50.6

%

(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 expenses and Impairment losses. 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.

CyrusOne Inc.

Reconciliation of Net Income (Loss) to FFO and Normalized FFO

(Dollars in millions)

(Unaudited)

 

Six Months Ended

 

 

 

Three Months Ended

June 30,

 

Change

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

2020

 

2019

 

$

 

%

 

2020

 

2020

 

2019

 

2019

 

2019

Reconciliation of Net Income (Loss) to FFO and Normalized FFO:

Net income (loss)

$

59.7

 

$

80.9

 

$

(21.2

)

(26)%

$

45.0

 

$

14.7

 

$

(52.1

)

$

12.6

 

$

(8.5

)

Real estate depreciation and amortization

 

213.3

 

 

200.3

 

 

13.0

 

6%

 

107.5

 

 

105.8

 

 

105.6

 

 

102.6

 

 

100.2

 

Impairment losses and gain on disposal of assets

 

2.3

 

 

 

 

2.3

 

n/m

 

2.4

 

 

(0.1

)

 

0.1

 

 

1.0

 

 

 

Funds from Operations ("FFO") - Nareit defined

$

275.3

 

$

281.2

 

$

(5.9

)

(2)%

$

154.9

 

$

120.4

 

$

53.6

 

$

116.2

 

$

91.7

 

 

 

 

 

 

 

 

 

 

 

Loss on early extinguishment of debt

 

3.4

 

 

 

 

3.4

 

n/m

 

 

 

3.4

 

 

71.8

 

 

 

 

 

(Gain) loss on marketable equity investment

 

(65.1

)

 

(92.7

)

 

27.6

 

(30)%

 

(50.4

)

 

(14.7

)

 

(27.2

)

 

(12.4

)

 

8.5

 

Foreign currency and derivative losses (gains), net

 

8.8

 

 

 

 

8.8

 

n/m

 

13.9

 

 

(5.1

)

 

13.0

 

 

(5.5

)

 

 

New accounting standards and regulatory compliance and the related system implementation costs

 

 

 

0.6

 

 

(0.6

)

n/m

 

 

 

 

 

 

 

0.2

 

 

0.3

 

Amortization of tradenames

 

0.6

 

 

0.3

 

 

0.3

 

n/m

 

0.3

 

 

0.3

 

 

0.4

 

 

0.6

 

 

0.1

 

Transaction, acquisition, integration and other related expenses

 

0.6

 

 

1.7

 

 

(1.1

)

(65)%

 

0.1

 

 

0.5

 

 

2.3

 

 

4.4

 

 

1.4

 

Cash severance and management transition costs

 

6.8

 

 

0.1

 

 

6.7

 

n/m

 

 

 

6.8

 

 

(0.7

)

 

 

 

 

Severance-related stock compensation costs

 

0.1

 

 

 

 

0.1

 

n/m

 

 

 

0.1

 

 

 

 

 

 

 

Legal claim costs

 

0.2

 

 

0.2

 

 

 

n/m

 

0.1

 

 

0.1

 

 

0.5

 

 

0.4

 

 

0.1

 

Normalized Funds from Operations (Normalized FFO)

$

230.7

 

$

191.4

 

$

39.3

 

21%

$

118.9

 

$

111.8

 

$

113.7

 

$

103.9

 

$

102.1

 

Normalized FFO per diluted common share

$

2.00

 

$

1.72

 

$

0.28

 

16%

$

1.03

 

$

0.97

 

$

0.99

 

$

0.91

 

$

0.90

 

Weighted average diluted common shares outstanding

 

115.4

 

 

111.1

 

 

4.3

 

4%

 

115.7

 

 

115.1

 

 

114.4

 

 

113.5

 

 

113.1

 

 

 

 

 

 

 

 

 

 

 

Additional Information:

 

 

 

 

 

 

 

 

 

Amortization of deferred financing costs and bond premium / discount

 

3.6

 

 

2.4

 

 

1.2

 

50%

 

1.6

 

 

2.0

 

 

1.4

 

 

1.2

 

 

1.2

 

Stock-based compensation expense

 

6.9

 

 

8.2

 

 

(1.3

)

(16)%

 

3.4

 

 

3.5

 

 

4.3

 

 

4.2

 

 

3.7

 

 

Non-real estate depreciation and amortization

 

4.0

 

 

3.8

 

 

0.2

 

5%

 

2.0

 

 

2.0

 

 

2.1

 

 

2.0

 

 

1.9

 

Straight line rent adjustments(a)

 

(0.4

)

 

(16.9

)

 

16.5

 

(98)%

 

(2.1

)

 

1.7

 

 

(3.8

)

 

(5.9

)

 

(6.8

)

Deferred revenue, primarily installation revenue(b)

 

0.1

 

 

10.6

 

 

(10.5

)

n/m

 

2.3

 

 

(2.2

)

 

(2.3

)

 

(1.7

)

 

4.7

 

Leasing commissions

 

(5.6

)

 

(6.8

)

 

1.2

 

(18)%

 

(3.2

)

 

(2.4

)

 

(4.8

)

 

(2.8

)

 

(3.1

)

Recurring capital expenditures

 

(9.9

)

 

(4.3

)

 

(5.6

)

n/m

 

(6.4

)

 

(3.5

)

 

(1.1

)

 

(4.5

)

 

(1.6

)

(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.

CyrusOne Inc.

Market Capitalization Summary, Reconciliation of Net Debt and Interest Summary

(Unaudited)

Market Capitalization (as of June 30, 2020)

(dollars in millions)

Shares or
Equivalents
Outstanding

Market Price
as of
June 30, 2020

Market Value
Equivalents
(in millions)

 

 

 

 

Common shares

116,852,894

$

72.75

$

8,501.0

Net Debt

 

 

 

3,149.4

Total Enterprise Value (TEV)

 

 

$

11,650.4

Reconciliation of Net Debt

 

 

 

 

 

(dollars in millions)

June 30,
2020

March 31,
2020

June 30,
2019

Long-term debt(a)

$

3,191.3

 

$

3,084.0

 

$

2,729.9

 

Finance lease liabilities

 

28.8

 

 

29.4

 

 

31.6

 

Less:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

(70.7

)

 

(57.3

)

 

(144.1

)

Net Debt

$

3,149.4

 

$

3,056.1

 

$

2,617.4

 

(a) Excludes adjustment for deferred financing costs and unamortized bond discounts.

Interest Summary

 

 

 

Three Months Ended

 

 

(dollars in millions)

June 30,
2020

March 31,
2020

June 30,
2019

% Change
Yr/Yr

Interest expense and fees, net

$

17.7

 

$

20.0

 

$

28.8

 

(39

)%

Amortization of deferred financing costs and bond premium / discount

 

1.6

 

 

2.0

 

 

1.2

 

33

%

Capitalized interest

 

(5.4

)

 

(6.0

)

 

(8.9

)

(39

)%

Total interest expense, net

$

13.9

 

$

16.0

 

$

21.1

 

(34

)%

CyrusOne Inc.

Debt Schedule and Debt Covenants

(Unaudited)

 

Debt Schedule (as of June 30, 2020)

 

(dollars in millions)

 

 

 

Long-term debt:

Amount

Interest Rate

Maturity Date

Revolving credit facility - EUR(a)(b)

 

89.8

EURIBOR + 100 bps(c)

 

March 2025 (d)

Revolving credit facility - GBP(a)(e)

 

37.0

GBP LIBOR + 100 bps(f)

 

March 2025 (d)

Revolving credit facility - USD(a)

 

203.0

USD LIBOR + 100 bps(g)

 

March 2025 (d)

Term loan(h)

 

1,100.0

USD LIBOR + 120 bps(i)

 

March 2025 (j)

2.900% USD senior notes due 2024

 

600.0

2.900%

 

November 2024

1.450% EUR senior notes due 2027(k)

 

561.5

1.450%

 

January 2027

3.450% USD senior notes due 2029

 

600.0

3.450%

 

November 2029

Total long-term debt(l)

$

3,191.3

2.05%(m)

 

Weighted average term of debt:

 

5.9

years

 

(a)

Revolving credit facility includes 0.20% facility fee on entire revolving credit facility commitment of $1.4 billion.

(b)

Amount outstanding is USD equivalent of €80 million.

(c)

Interest rate as of June 30, 2020: 1.00%.

(d)

Assuming exercise of 12-month extension option.

(e)

Amount outstanding is USD equivalent of £30 million.

(f)

Interest rate as of June 30, 2020: 1.10%.

(g)

Interest rate as of June 30, 2020: 1.18%.

(h)

$500 million of $1,100 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.

(i)

Interest rate as of June 30, 2020: 1.38%; weighted average interest rate pursuant to swaps: 1.40%.

(j)

Assumes exercise of two 12-month extension options on $400 million tranche.

(k)

Amount outstanding is USD equivalent of €500 million.

(l)

Excludes adjustment for deferred financing costs and unamortized bond discounts.

(m)

Weighted average interest rate calculated using lower interest rate on swapped amount.

Debt Covenants - Senior Notes (as of June 30, 2020)

 

Ratios

Requirement

June 30, 2020

Total Outstanding Indebtedness to Total Assets

≤ 60%

39%

Secured Indebtedness to Total Assets

≤ 40%

0%

Consolidated EBITDA to Interest Expense

≥ 1.50x

7.09x

Total Unencumbered Assets to Unsecured Indebtedness

≥ 150%

253%

CyrusOne Inc.

Colocation Square Footage (CSF) and CSF Leased

(Unaudited)

 

As of June 30, 2020

 

As of March 31, 2020

 

As of June 30, 2019

Colocation
Space (CSF)(a)

 

CSF

 

Colocation
Space (CSF)(a)

 

CSF

 

Colocation
Space (CSF)(a)

 

CSF

Market

(000)

 

Leased(b)

 

(000)

 

Leased(b)

 

(000)

 

Leased(b)

Northern Virginia

1,166

92

%

1,113

96

%

1,113

91

%

Dallas

621

71

%

621

71

%

621

70

%

Phoenix

581

92

%

509

100

%

509

100

%

Cincinnati

402

73

%

402

75

%

402

79

%

San Antonio

367

96

%

300

100

%

300

100

%

Houston

308

62

%

308

63

%

308

68

%

New York Metro

245

76

%

245

73

%

228

77

%

Chicago

203

78

%

203

78

%

203

72

%

Austin

106

76

%

106

78

%

106

81

%

Raleigh-Durham

94

96

%

94

96

%

83

100

%

Total - Domestic

4,093

83

%

3,901

85

%

3,872

84

%

London

148

70

%

128

81

%

116

72

%

Frankfurt

144

99

%

144

99

%

125

99

%

Amsterdam

39

100

%

39

100

%

%

Singapore

3

20

%

3

20

%

3

22

%

Total - International

334

85

%

314

91

%

244

85

%

Total - Portfolio

4,427

83

%

4,215

86

%

4,116

84

%

Stabilized Properties(c)

4,055

88

%

4,035

88

%

3,744

89

%

(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.

CyrusOne Inc.

2020 Guidance

 

 

Previous
2020 Guidance

Current
2020 Guidance

Category

 

 

Total Revenue

$1,010 - 1,045 million

$1,010 - 1,045 million

Lease and Other Revenues from Customers

$865 - 890 million

$865 - 890 million

Metered Power Reimbursements

$145 - 155 million

$145 - 155 million

Adjusted EBITDA

$525 - 550 million

$525 - 550 million

Normalized FFO per diluted common share

$3.75 - 3.90

$3.75 - 3.90

Capital Expenditures

$750 - 850 million

$850 - 950 million

Development(1)

$735 - 830 million

$835 - 930 million

Recurring

$15 - 20 million

$15 - 20 million

(1)

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

CyrusOne is updating guidance for full year 2020, increasing the upper and lower ends of the guidance range for Capital Expenditures and Capital Expenditures - Development and reaffirming its other guidance ranges. 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. The COVID-19 pandemic continues to evolve rapidly and the potential impact on our business remains uncertain and unpredictable.

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 above due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including Net income (loss) and adjustments that could be made for Transaction, acquisition, integration and other related expenses, Legal claim costs, Impairment losses and loss on disposal of assets and other charges in its reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.

CyrusOne Inc.

Data Center Portfolio

As of June 30, 2020

(Unaudited)

 

Gross Square Feet (GSF)(a)

 

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)

 

Powered
Shell
Available
for Future
Development
(GSF)(k)
(000)

 

Available
Critical
Load
Capacity
(MW)(l)

Dallas - Carrollton

Dallas

$

90,153

428

79

%

79

%

83

46

%

133

644

62

Northern Virginia - Sterling V

Northern Virginia

 

66,202

383

99

%

99

%

11

100

%

145

539

64

66

Northern Virginia - Sterling VI

Northern Virginia

 

50,843

272

100

%

100

%

35

%

307

57

Somerset I

New York Metro

 

34,156

108

81

%

81

%

27

99

%

89

224

138

16

Northern Virginia - Sterling II

Northern Virginia

 

33,944

159

100

%

100

%

9

100

%

55

223

30

Chicago - Aurora I

Chicago

 

32,412

113

98

%

98

%

34

100

%

223

371

27

71

San Antonio III

San Antonio

 

32,330

132

100

%

100

%

9

100

%

43

184

24

Houston - Houston West I

Houston

 

27,731

112

75

%

75

%

11

100

%

37

161

3

28

Cincinnati - 7th Street***

Cincinnati

 

27,710

197

54

%

54

%

6

61

%

175

378

46

16

Phoenix - Chandler VI

Phoenix

 

27,236

148

100

%

100

%

6

100

%

32

187

279

24

Totowa - Madison**

New York Metro

 

26,515

51

87

%

87

%

22

89

%

59

133

6

Dallas - Lewisville*

Dallas

 

26,475

114

82

%

82

%

11

63

%

54

180

21

Cincinnati - North Cincinnati

Cincinnati

 

25,723

65

99

%

99

%

45

79

%

53

163

65

14

Frankfurt I

Frankfurt

 

24,038

53

97

%

97

%

8

91

%

57