[February 18, 2015] |
|
CyrusOne Reports Fourth Quarter 2014 Earnings
Global data center service provider CyrusOne Inc. (NASDAQ: CONE), which
specializes in providing highly reliable enterprise-class,
carrier-neutral data center properties to the Fortune 1000, today
announced fourth quarter and full year 2014 earnings.
Highlights
-
Fourth quarter revenue of $86.9 million and full year revenue of
$330.9 million increased 20% and 26%, respectively, over fourth
quarter and full year 2013
-
Fourth quarter Normalized FFO of $31.2 million and AFFO of $29.8
million increased 32% and 43%, respectively, over the
fourth quarter of 2013
-
Full year Normalized FFO of $112.9 million and AFFO of $111.7 million
increased 43% and 54%, respectively, over full year 2013
-
Fourth quarter Adjusted EBITDA of $44.6 million and full year Adjusted
EBITDA of $169.3 million increased 12% and 22%, respectively over
fourth quarter and full year 2013
-
Announcing a 50% increase in the quarterly dividend and distribution
for the first quarter of 2015 to $0.315 per share on common shares and
common share equivalents, up from $0.21 per share in 2014
-
Leased 44,000 colocation square feet in the fourth quarter, with
utilization remaining high at 88%, increasing full year 2014 leasing
to 236,000 colocation square feet and bringing development yield to 18%
-
Added three Fortune 1000 companies as new customers in the fourth
quarter, increasing the total number of Fortune 1000 customers to 144,
and fifteen Fortune 1000 companies for full year 2014
"CyrusOne had another outstanding year, with high growth rates across
all key metrics, the addition of nearly 60 logos including 15 Fortune
1000 customers, and the introduction of an East Coast presence with the
addition of Northern Virginia to our portfolio," said Gary Wojtaszek,
president and chief executive officer of CyrusOne. "Our success in
attracting Fortune 1000 customers, which have outsourced less than 15%
of their business, we believe will continue to enable us to deliver
meaningful shareholder value through long-term growth in our FFO and
appropriate increases in our dividend, highlighted by our 50% increase
in the dividend payout for the quarter."
Fourth Quarter 2014 Financial Results
Revenue was $86.9 million for the fourth quarter, compared to $72.3
million for the same period in 2013, an increase of 20%. Operating
income of $11.2 million improved $2.2 million from the fourth quarter of
2013, as a $14.6 million increase in revenue and the impact of $3.0
million in asset impairments and transaction costs in the fourth quarter
of 2013 were partially offset by increases in property operating
expenses of $7.7 million, depreciation and amortization of $4.0 million,
and sales, general and administrative expenses of $3.6 million. Net loss
was $11.8 million for the fourth quarter, compared to a net loss of $3.8
million for the same period in 2013.
Net operating income (NOI)1 was $54.9 million for the fourth
quarter, compared to $48.0 million in the same period in 2013, an
increase of 14%. The increase in NOI was driven by the increase in
revenue, partially offset by additional property operating costs from
new facilities and expansions at existing facilities. Adjusted EBITDA2
was $44.6 million for the fourth quarter, compared to $39.9 million in
the same period in 2013, an increase of 12%. The Adjusted EBITDA margin
of 51.3% in the fourth quarter declined from 55.2% in the same period in
2013, primarily driven by increased electricity usage as well as the
incremental expenses associated with the Company's additional
Sarbanes-Oxley compliance requirements resulting from the Company's
successful market-cap growth into large accelerated filer status in 2014.
Normalized Funds From Operations (Normalized FFO)3 was $31.2
million for the fourth quarter, compared to $23.6 million in the same
period in 2013, an increase of 32%. The increase in Normalized FFO was
primarily due to growth in Adjusted EBITDA as well as a decrease in
interest expense. Normalized FFO per diluted common share or common
share equivalent4 was $0.48 in the fourth quarter of 2014.
Adjusted Funds From Operations (AFFO)5 was $29.8 million for
the fourth quarter, compared to $20.8 million in the same period in
2013, an increase of 43%.
Full Year 2014 Financial Results
Revenue for the full year was $330.9 million, compared to $263.5 million
in 2013, an increase of 26%. Net loss for the full year was $14.5
million compared to $35.8 million in 2013. The Company's higher Adjusted
EBITDA, the impacts of transaction-related compensation and asset
impairments in 2013, and lower interest and income tax expense were
partially offset by higher depreciation and amortization, loss on
extinguishment of debt, and stock-based compensation.
Adjusted EBITDA increased 22% to $169.3 million from $138.7 million in
2013. Normalized FFO for the full year increased to $112.9 million in
2014 from $78.7 million in 2013, an increase of 43%. AFFO for the full
year was $111.7 million, an increase of 54% from $72.4 million in 2013.
Leasing Activity
CyrusOne leased approximately 44,000 colocation square feet (CSF), or
5.3 MW of power, in the fourth quarter. Leases signed in the fourth
quarter represent approximately $0.9 million in monthly recurring rent,
or approximately $11 million in annualized contracted GAAP revenue6
excluding estimates for pass-through power. Including estimates of
pass-through power charges, the leases signed this quarter represent
approximately $14 million of annualized GAAP revenue once the customer
has fully ramped in. The Company added three new Fortune 10007
customers in the fourth quarter, bringing the total to 144 customers in
the Fortune 1000 and 669 customers in total as of December 31, 2014. The
weighted average lease term of the new leases based on square footage
was 69 months, and approximately 78% of the CSF was leased to metered
customers with the remainder leased on a full service basis. Recurring
rent churn8 for the fourth quarter of 2014 was 1.7%, compared
to 1.1% for the fourth quarter of 2013.
Portfolio Utilization and Development
As of December 31, 2014, CyrusOne had approximately 1,225,000 CSF across
25 facilities, an increase of approximately 172,000, or 16%, from a year
ago. CSF utilization9 for the fourth quarter was 88%,
compared to 85% in the same period in 2013. In the fourth quarter of
2014, the Company completed construction on its Phoenix 2 facility,
adding approximately 103,000 NRSF, including 37,000 leased CSF. In early
2015, CyrusOne completed construction on its new facility in Northern
Virginia, adding approximately 129,000 NRSF, including 30,000 CSF.
Construction continues on new facilities in San Antonio and Houston,
with the Company expecting to add a total of approximately 453,000 NRSF
and 90,000 CSF in the first half of 2015. The Company also expects to
begin construction on an additional 56,000 CSF at its Carrollton
facility in Dallas and an additional 36,000 CSF at its Phoenix 2
facility in the first half of 2015.
Balance Sheet and Liquidity
As of December 31, 2014, the Company had $659.8 million of long term
debt, cash of $36.5 million, and $315.0 million available under its
unsecured revolving credit facility. Net debt10 was $636.7
million as of December 31, 2014, approximately 26% of the Company's
total enterprise value or 3.6x Adjusted EBITDA for the last quarter
annualized. Available liquidity11 was $351.5 million as of
December 31, 2014.
In November and December of 2014, the Company repurchased a portion of
its outstanding 6 3/8% Senior Notes due 2022 having an aggregate face
value of $150.2 million for a purchase price of $163.0 million.
Dividend and Distribution
On November 4, 2014, the Company announced a dividend and distribution
of $0.21 per share of common stock and common stock equivalent for the
fourth quarter of 2014. The dividend / distribution was paid on January
9, 2015, to stockholders and unitholders of record at the close of
business on December 26, 2014.
Additionally, today the Company is announcing a dividend and
distribution of $0.315 per share of common stock and common stock
equivalent for the first quarter of 2015. The dividend / distribution
will be paid on April 15, 2015, to stockholders and unitholders of
record at the close of business on March 27, 2015.
Guidance
CyrusOne is issuing the following guidance for full year 2015:
|
|
|
Category
|
|
|
2014 Results
|
|
|
2015 Guidance
|
|
|
|
Total Revenue
|
|
|
$331 million
|
|
|
$370 - $385 million
|
|
|
|
Base Revenue
|
|
|
$290 million
|
|
|
$322 - $332 million
|
|
|
|
Metered Power Reimbursements
|
|
|
$41 million
|
|
|
$48 - $53 million
|
|
|
|
Adjusted EBITDA
|
|
|
$169 million
|
|
|
$185 - $195 million
|
|
|
|
Normalized FFO per diluted common share or common share equivalent*
|
|
|
$1.73
|
|
|
$1.90 - $2.00
|
|
|
|
Capital Expenditures
|
|
|
$284 million
|
|
|
$215 - $240 million
|
|
|
|
Development**
|
|
|
$280 million
|
|
|
$210 - $230 million
|
|
|
|
Recurring
|
|
|
$4 million
|
|
|
$5 - $10 million
|
|
|
|
|
*
|
Assumes weighted average diluted common share or common share
equivalents for 2015 of 66 million.
|
**
|
Development capital is inclusive of capital used for the acquisition
of land for future development.
|
|
|
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.
Upcoming Conferences and Events
-
Citi Global Property CEO Conference on March 1-4 in Miami
Conference Call Details
CyrusOne will host a conference call on February 18, 2015, at 1:00 PM
Eastern Time (12:00 PM Central Time) to discuss its results for the
fourth quarter of 2014. A live webcast of the conference call will be
available under the "Investor Relations" tab in the "Events and
Presentations" section of the Company's website at http://investor.cyrusone.com/events.cfm.
The U.S. conference call dial-in number is 1-866-652-5200, and the
international dial-in number is 1-412-317-6060. A replay will be
available one hour after the conclusion of the earnings call on February
18, 2015, until 9:00 AM Eastern Time (8:00 AM Central Time) on February
26, 2015. 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 10058835.
Safe Harbor
This release and the documents incorporated by reference herein contain
forward-looking statements regarding future events and our future
results that are subject to the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. All statements, other than
statements of historical facts, are statements that could be deemed
forward-looking statements. These statements are based on current
expectations, estimates, forecasts, and projections about the industries
in which we operate and the beliefs and assumptions of our management.
Words such as "expects," "anticipates," "predicts," "projects,"
"intends," "plans," "believes," "seeks," "estimates," "continues,"
"endeavors," "strives," "may," variations of such words and similar
expressions are intended to identify such forward-looking statements. In
addition, any statements that refer to projections of our future
financial performance, our anticipated growth and trends in our
businesses, and other characterizations of future events or
circumstances are forward-looking statements. Readers are cautioned
these forward-looking statements are based on current expectations and
assumptions that are subject to risks and uncertainties, which could
cause our actual results to differ materially and adversely from those
reflected in the forward-looking statements. Factors that could cause or
contribute to such differences include, but are not limited to, those
discussed in this release and those discussed in other documents we file
with the Securities and Exchange Commission (SEC). More information on
potential risks and uncertainties is available in our recent filings
with the SEC, including CyrusOne's Form 10-K report, Form 10-Q reports,
and Form 8-K reports. Actual results may differ materially and adversely
from those expressed in any forward-looking statements. We undertake no
obligation to revise or update any forward-looking statements for any
reason.
Use of Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures that
management believes are helpful in understanding the Company's business,
as further discussed within this press release. These financial
measures, which include Funds From Operations, Normalized Funds From
Operations, Adjusted EBITDA, Net Operating Income and Net debt should
not be construed as being more important than comparable GAAP measures.
Detailed reconciliations of these non-GAAP financial measures to
comparable GAAP financial measures have been included in the tables that
accompany this release and are available in the Investor Relations
section of www.cyrusone.com.
Management uses FFO, Normalized FFO, Adjusted EBITDA, NOI and AFFO as
supplemental performance measures because they provide performance
measures that, when compared year over year, capture trends in occupancy
rates, rental rates and operating costs. The Company also believes that,
as widely recognized measures of the performance of real estate
investment trusts (REITs) and other companies, these measures will be
used by investors as a basis to compare its operating performance with
that of other companies. Other companies may not calculate these
measures in the same manner, and, as presented, they may not be
comparable to others. Therefore, FFO, Normalized FFO, NOI, AFFO and
Adjusted EBITDA should be considered only as supplements to net income
as measures of our performance. FFO, Normalized FFO, NOI, AFFO and
Adjusted EBITDA should not be used as measures of liquidity or as
indicative of funds available to fund the Company's cash needs,
including the ability to make distributions. These measures also should
not be used as substitutes for cash flow from operating activities
computed in accordance with U.S. GAAP.
1Net Operating Income (NOI) is defined as revenue less
property operating expenses. Amortization of deferred leasing costs is
presented in depreciation and amortization, which is excluded from NOI.
CyrusOne has not historically incurred any tenant improvement costs. Our
sales and marketing costs consist of salaries and benefits for our
internal sales staff, travel and entertainment, office supplies,
marketing and advertising costs. General and administrative costs
include salaries and benefits of our senior management and support
functions, legal and consulting costs, and other administrative costs.
Marketing and advertising costs are not property-specific, rather these
costs support our entire portfolio. As a result, we have excluded these
marketing and advertising costs from our NOI calculation, consistent
with the treatment of general and administrative costs, which also
support our entire portfolio.
2Adjusted EBITDA is defined as net income (loss) as defined
by U.S. GAAP before noncontrolling interests plus interest expense,
income tax (benefit) expense, depreciation and amortization, non-cash
compensation, transaction costs and transaction-related compensation,
including acquisition pursuit costs, restructuring costs, loss on
extinguishment of debt, asset impairments, (gain) loss on sale of real
estate improvements, and other special items. Other companies may not
calculate Adjusted EBITDA in the same manner. Accordingly, the Company's
Adjusted EBITDA as presented may not be comparable to others.
3Normalized Funds From Operations (Normalized FFO) is defined
as Funds From Operations (FFO) plus transaction costs, including
acquisition pursuit costs, transaction-related compensation, (gain) loss
on extinguishment of debt, restructuring costs and other special items.
FFO is net (loss) income computed in accordance with U.S. GAAP before
noncontrolling interests, (gain) loss from sales of real estate
improvements, real estate-related depreciation and amortization,
amortization of customer relationship intangibles, and real estate and
customer relationship intangible impairments. Because the value of the
customer relationship intangibles is inextricably connected to the real
estate acquired, CyrusOne believes the amortization and impairments of
such intangibles is analogous to real estate depreciation and
impairments; therefore, the Company adds the customer relationship
intangible amortization and impairments back for similar treatment with
real estate depreciation and impairments. CyrusOne's customer
relationship intangibles are primarily associated with the acquisition
of Cyrus Networks in 2010 and, at the time of acquisition, represented
22% of the value of the assets acquired. The Company believes its
Normalized FFO calculation provides a comparable measure to that used by
others in the industry.
4Normalized FFO per diluted common share or common share
equivalent is defined as Normalized FFO divided by the average diluted
common shares and common share equivalents outstanding for the quarter,
which were 65,316,202 for the fourth quarter of 2014.
5Adjusted Funds From Operations (AFFO) is defined as
Normalized FFO plus amortization of deferred financing costs, non-cash
compensation, and non-real estate depreciation and amortization, less
deferred revenue and straight line rent adjustments, leasing
commissions, recurring capital expenditures, and non-cash corporate
income tax benefit and expense.
6Annualized GAAP revenue is equal to monthly recurring rent,
defined as average monthly contractual rent during the term of the
lease, multiplied by 12. It can be shown both inclusive and exclusive of
the Company's estimate of customer reimbursements for metered power.
7Fortune 1000 customers include subsidiaries whose ultimate
parent is a Fortune 1000 company or a foreign or private company of
equivalent size.
8Recurring rent churn is calculated as any reduction in
recurring rent due to customer terminations, service reductions or net
pricing decreases as a percentage of rent at the beginning of the
period, excluding any impact from metered power reimbursements or other
usage-based billing.
9Utilization is calculated by dividing CSF under signed
leases for available space (whether or not the contract has commenced
billing) by total CSF. Utilization rate differs from percent leased
presented in the Data Center Portfolio table because utilization rate
excludes office space and supporting infrastructure net rentable square
footage and includes CSF for signed leases that have not commenced
billing. Management uses utilization rate as a measure of CSF leased.
10Net debt provides a useful measure of liquidity and
financial health. The Company defines Net Debt as long-term debt and
capital lease obligations, offset by cash, cash equivalents, and
temporary cash investments.
11Liquidity is calculated as cash, cash equivalents, and
temporary cash investments on hand, plus the undrawn capacity on
CyrusOne's revolving credit facility.
About CyrusOne
CyrusOne (NASDAQ: CONE) specializes in highly reliable enterprise-class,
carrier-neutral data center properties. The Company provides
mission-critical data center facilities that protect and ensure the
continued operation of IT infrastructure for more than 665 customers,
including nine of the Fortune 20 and 144 of the 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 25 data
centers worldwide.
|
CyrusOne Inc.
Condensed Consolidated and Combined Statements of Operations
(Dollars in millions, except per share amounts)
(Unaudited)
|
|
|
|
Three Months Ended December 31,
|
|
|
|
|
|
|
|
Twelve Months Ended December 31,
|
|
|
|
|
|
|
|
|
Change
|
|
Change
|
|
|
2014
|
|
|
2013
|
|
|
$
|
|
%
|
|
2014
|
|
|
2013
|
|
|
$
|
|
%
|
Revenue
|
|
$
|
86.9
|
|
|
$
|
72.3
|
|
|
$
|
14.6
|
|
|
20
|
%
|
|
$
|
330.9
|
|
|
$
|
263.5
|
|
|
$
|
67.4
|
|
|
26
|
%
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses
|
|
32.0
|
|
|
24.3
|
|
|
7.7
|
|
|
32
|
%
|
|
124.5
|
|
|
93.2
|
|
|
31.3
|
|
|
34
|
%
|
Sales and marketing
|
|
3.1
|
|
|
2.6
|
|
|
0.5
|
|
|
19
|
%
|
|
12.8
|
|
|
10.6
|
|
|
2.2
|
|
|
21
|
%
|
General and administrative
|
|
9.9
|
|
|
6.8
|
|
|
3.1
|
|
|
46
|
%
|
|
34.6
|
|
|
28.0
|
|
|
6.6
|
|
|
24
|
%
|
Depreciation and amortization
|
|
30.6
|
|
|
26.6
|
|
|
4.0
|
|
|
15
|
%
|
|
118.0
|
|
|
95.2
|
|
|
22.8
|
|
|
24
|
%
|
Restructuring charges
|
|
-
|
|
|
-
|
|
|
-
|
|
|
n/m
|
|
-
|
|
|
0.7
|
|
|
(0.7
|
)
|
|
(100
|
)%
|
Transaction costs
|
|
0.1
|
|
|
0.2
|
|
|
(0.1
|
)
|
|
(50
|
)%
|
|
1.0
|
|
|
1.4
|
|
|
(0.4
|
)
|
|
(29
|
)%
|
Transaction-related compensation
|
|
-
|
|
|
-
|
|
|
-
|
|
|
n/m
|
|
-
|
|
|
20.0
|
|
|
(20.0
|
)
|
|
(100
|
)%
|
Asset impairments
|
|
-
|
|
|
2.8
|
|
|
(2.8
|
)
|
|
(100
|
)%
|
|
-
|
|
|
2.8
|
|
|
(2.8
|
)
|
|
(100
|
)%
|
Total costs and expenses
|
|
75.7
|
|
|
63.3
|
|
|
12.4
|
|
|
20
|
%
|
|
290.9
|
|
|
251.9
|
|
|
39.0
|
|
|
15
|
%
|
Operating income
|
|
11.2
|
|
|
9.0
|
|
|
2.2
|
|
|
24
|
%
|
|
40.0
|
|
|
11.6
|
|
|
28.4
|
|
|
245
|
%
|
Interest expense
|
|
9.1
|
|
|
11.5
|
|
|
(2.4
|
)
|
|
(21
|
)%
|
|
39.5
|
|
|
43.7
|
|
|
(4.2
|
)
|
|
(10
|
)%
|
Other income
|
|
-
|
|
|
-
|
|
|
-
|
|
|
n/m
|
|
-
|
|
|
(0.1
|
)
|
|
0.1
|
|
|
(100
|
)%
|
Loss on extinguishment of debt
|
|
13.6
|
|
|
-
|
|
|
13.6
|
|
|
n/m
|
|
13.6
|
|
|
1.3
|
|
|
12.3
|
|
|
946
|
%
|
Income (loss) before income taxes
|
|
(11.5
|
)
|
|
(2.5
|
)
|
|
(9.0
|
)
|
|
360
|
%
|
|
(13.1
|
)
|
|
(33.3
|
)
|
|
20.2
|
|
|
(61
|
)%
|
Income tax expense
|
|
(0.3
|
)
|
|
(1.1
|
)
|
|
0.8
|
|
|
(73
|
)%
|
|
(1.4
|
)
|
|
(2.3
|
)
|
|
0.9
|
|
|
(39
|
)%
|
Loss on sale of real estate improvements
|
|
-
|
|
|
(0.2
|
)
|
|
0.2
|
|
|
(100
|
)%
|
|
-
|
|
|
(0.2
|
)
|
|
0.2
|
|
|
(100
|
)%
|
Net income (loss)
|
|
(11.8
|
)
|
|
(3.8
|
)
|
|
(8.0
|
)
|
|
n/m
|
|
(14.5
|
)
|
|
(35.8
|
)
|
|
21.3
|
|
|
(59
|
)%
|
Net loss attributed to Predecessor
|
|
-
|
|
|
-
|
|
|
-
|
|
|
n/m
|
|
-
|
|
|
(20.2
|
)
|
|
20.2
|
|
|
(100
|
)%
|
Noncontrolling interest in net income (loss)
|
|
(4.8
|
)
|
|
(2.5
|
)
|
|
(2.3
|
)
|
|
92
|
%
|
|
(6.7
|
)
|
|
(10.3
|
)
|
|
3.6
|
|
|
(35
|
)%
|
Net income (loss) attributed to common stockholders
|
|
$
|
(7.0
|
)
|
|
$
|
(1.3
|
)
|
|
$
|
(5.7
|
)
|
|
438
|
%
|
|
$
|
(7.8
|
)
|
|
$
|
(5.3
|
)
|
|
$
|
(2.5
|
)
|
|
47
|
%
|
Loss per common share - basic and diluted
|
|
$
|
(0.19
|
)
|
|
$
|
(0.06
|
)
|
|
|
|
|
|
|
|
$
|
(0.30
|
)
|
|
$
|
(0.28
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Condensed Consolidated Balance Sheets
(Dollars in millions)
(Unaudited)
|
|
|
|
December 31,
|
|
December 31,
|
|
Change
|
|
|
2014
|
|
2013
|
|
$
|
|
%
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
Land
|
|
$
|
89.7
|
|
|
$
|
89.3
|
|
|
$
|
0.4
|
|
|
-
|
%
|
Buildings and improvements
|
|
812.6
|
|
|
783.7
|
|
|
28.9
|
|
|
4
|
%
|
Equipment
|
|
349.1
|
|
|
190.2
|
|
|
158.9
|
|
|
84
|
%
|
Construction in progress
|
|
127.0
|
|
|
57.3
|
|
|
69.7
|
|
|
122
|
%
|
Subtotal
|
|
1,378.4
|
|
|
1,120.5
|
|
|
257.9
|
|
|
23
|
%
|
Accumulated depreciation
|
|
(327.0
|
)
|
|
(236.7
|
)
|
|
(90.3
|
)
|
|
38
|
%
|
Net investment in real estate
|
|
1,051.4
|
|
|
883.8
|
|
|
167.6
|
|
|
19
|
%
|
Cash and cash equivalents
|
|
36.5
|
|
|
148.8
|
|
|
(112.3
|
)
|
|
(75
|
)%
|
Rent and other receivables
|
|
60.9
|
|
|
41.2
|
|
|
19.7
|
|
|
48
|
%
|
Goodwill
|
|
276.2
|
|
|
276.2
|
|
|
-
|
|
|
-
|
%
|
Intangible assets, net
|
|
68.9
|
|
|
85.9
|
|
|
(17.0
|
)
|
|
(20
|
)%
|
Due from affiliates
|
|
0.8
|
|
|
0.6
|
|
|
0.2
|
|
|
33
|
%
|
Other assets
|
|
91.8
|
|
|
70.3
|
|
|
21.5
|
|
|
31
|
%
|
Total assets
|
|
$
|
1,586.5
|
|
|
$
|
1,506.8
|
|
|
$
|
79.7
|
|
|
5
|
%
|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
$
|
69.9
|
|
|
$
|
66.8
|
|
|
$
|
3.1
|
|
|
5
|
%
|
Deferred revenue
|
|
65.7
|
|
|
55.9
|
|
|
9.8
|
|
|
18
|
%
|
Due to affiliates
|
|
7.3
|
|
|
8.5
|
|
|
(1.2
|
)
|
|
(14
|
)%
|
Capital lease obligations
|
|
13.4
|
|
|
16.7
|
|
|
(3.3
|
)
|
|
(20
|
)%
|
Long-term debt
|
|
659.8
|
|
|
525.0
|
|
|
134.8
|
|
|
26
|
%
|
Other financing arrangements
|
|
53.4
|
|
|
56.3
|
|
|
(2.9
|
)
|
|
(5
|
)%
|
Total liabilities
|
|
869.5
|
|
|
729.2
|
|
|
140.3
|
|
|
19
|
%
|
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, $.01 par value, 100,000,000 authorized; no shares
issued or outstanding
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
%
|
Common stock, $.01 par value, 500,000,000 shares authorized and
38,651,517 and 21,991,669 shares issued and outstanding at December
31, 2014 and December 31, 2013, respectively
|
|
0.4
|
|
|
0.2
|
|
|
0.2
|
|
|
100
|
%
|
Paid in capital
|
|
516.5
|
|
|
340.7
|
|
|
175.8
|
|
|
52
|
%
|
Accumulated deficit
|
|
(55.9
|
)
|
|
(18.9
|
)
|
|
(37.0
|
)
|
|
196
|
%
|
Other Comprehensive Income
|
|
(0.3
|
)
|
|
-
|
|
|
(0.3
|
)
|
|
n/m
|
Total shareholders' equity
|
|
460.7
|
|
|
322.0
|
|
|
138.7
|
|
|
43
|
%
|
Noncontrolling interest
|
|
256.3
|
|
|
455.6
|
|
|
(199.3
|
)
|
|
(44
|
)%
|
Total equity
|
|
717.0
|
|
|
777.6
|
|
|
(60.6
|
)
|
|
(8
|
)%
|
Total liabilities and shareholders' equity
|
|
$
|
1,586.5
|
|
|
$
|
1,506.8
|
|
|
$
|
79.7
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Condensed Consolidated and Combined Statements of Operations
(Dollars in millions, except per share amounts)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended:
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
|
2014
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Revenue
|
|
$
|
75.4
|
|
|
$
|
73.9
|
|
|
$
|
71.4
|
|
|
$
|
69.4
|
|
|
$
|
66.0
|
|
Metered Power Reimbursements
|
|
11.5
|
|
|
10.9
|
|
|
10.3
|
|
|
8.1
|
|
|
6.3
|
|
Total Revenue
|
|
86.9
|
|
|
84.8
|
|
|
81.7
|
|
|
77.5
|
|
|
72.3
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses
|
|
32.0
|
|
|
33.0
|
|
|
31.8
|
|
|
27.7
|
|
|
24.3
|
|
Sales and marketing
|
|
3.1
|
|
|
3.2
|
|
|
3.5
|
|
|
3.0
|
|
|
2.6
|
|
General and administrative
|
|
9.9
|
|
|
9.0
|
|
|
8.4
|
|
|
7.3
|
|
|
6.8
|
|
Depreciation and amortization
|
|
30.6
|
|
|
30.0
|
|
|
29.8
|
|
|
27.6
|
|
|
26.6
|
|
Restructuring charges
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Transaction costs
|
|
0.1
|
|
|
-
|
|
|
0.8
|
|
|
0.1
|
|
|
0.2
|
|
Asset impairments
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2.8
|
|
Total costs and expenses
|
|
75.7
|
|
|
75.2
|
|
|
74.3
|
|
|
65.7
|
|
|
63.3
|
|
Operating income
|
|
11.2
|
|
|
9.6
|
|
|
7.4
|
|
|
11.8
|
|
|
9.0
|
|
Interest expense
|
|
9.1
|
|
|
9.0
|
|
|
10.7
|
|
|
10.7
|
|
|
11.5
|
|
Other income
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Loss on extinguishment of debt
|
|
13.6
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Income (loss) before income taxes
|
|
(11.5
|
)
|
|
0.6
|
|
|
(3.3
|
)
|
|
1.1
|
|
|
(2.5
|
)
|
Income tax expense
|
|
(0.3
|
)
|
|
(0.4
|
)
|
|
(0.3
|
)
|
|
(0.4
|
)
|
|
(1.1
|
)
|
Loss on sale of real estate improvements
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(0.2
|
)
|
Net income (loss) from continuing operations
|
|
(11.8
|
)
|
|
0.2
|
|
|
(3.6
|
)
|
|
0.7
|
|
|
(3.8
|
)
|
Noncontrolling interest in net income (loss)
|
|
(4.8
|
)
|
|
0.1
|
|
|
(2.5
|
)
|
|
0.5
|
|
|
(2.5
|
)
|
Net income (loss) attributed to common stockholders
|
|
$
|
(7.0
|
)
|
|
$
|
0.1
|
|
|
$
|
(1.1
|
)
|
|
$
|
0.2
|
|
|
$
|
(1.3
|
)
|
Loss per common share - basic and diluted
|
|
$
|
(0.19
|
)
|
|
$
|
-
|
|
|
$
|
(0.06
|
)
|
|
$
|
-
|
|
|
$
|
(0.06
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Condensed Consolidated Balance Sheets
(Dollars in millions)
(Unaudited)
|
|
|
|
December 31, 2014
|
|
September 30, 2014
|
|
June 30, 2014
|
|
March 31, 2014
|
|
December 31, 2013
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land
|
|
$
|
89.7
|
|
|
$
|
89.7
|
|
|
$
|
89.7
|
|
|
$
|
89.6
|
|
|
$
|
89.3
|
|
Buildings and improvements
|
|
812.6
|
|
|
796.6
|
|
|
791.7
|
|
|
787.0
|
|
|
783.7
|
|
Equipment
|
|
349.1
|
|
|
312.5
|
|
|
298.8
|
|
|
206.4
|
|
|
190.2
|
|
Construction in progress
|
|
127.0
|
|
|
120.9
|
|
|
59.5
|
|
|
99.4
|
|
|
57.3
|
|
Subtotal
|
|
1,378.4
|
|
|
1,319.7
|
|
|
1,239.7
|
|
|
1,182.4
|
|
|
1,120.5
|
|
Accumulated depreciation
|
|
(327.0
|
)
|
|
(303.5
|
)
|
|
(280.6
|
)
|
|
(257.6
|
)
|
|
(236.7
|
)
|
Net investment in real estate
|
|
1,051.4
|
|
|
1,016.2
|
|
|
959.1
|
|
|
924.8
|
|
|
883.8
|
|
Cash and cash equivalents
|
|
36.5
|
|
|
30.4
|
|
|
49.3
|
|
|
125.2
|
|
|
148.8
|
|
Rent and other receivables
|
|
60.9
|
|
|
59.1
|
|
|
61.5
|
|
|
42.4
|
|
|
41.2
|
|
Goodwill
|
|
276.2
|
|
|
276.2
|
|
|
276.2
|
|
|
276.2
|
|
|
276.2
|
|
Intangible assets, net
|
|
68.9
|
|
|
73.2
|
|
|
77.4
|
|
|
81.7
|
|
|
85.9
|
|
Due from affiliates
|
|
0.8
|
|
|
1.3
|
|
|
0.5
|
|
|
0.9
|
|
|
0.6
|
|
Other assets
|
|
91.8
|
|
|
81.6
|
|
|
82.1
|
|
|
76.9
|
|
|
70.3
|
|
Total assets
|
|
$
|
1,586.5
|
|
|
$
|
1,538.0
|
|
|
$
|
1,506.1
|
|
|
$
|
1,528.1
|
|
|
$
|
1,506.8
|
|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
$
|
69.9
|
|
|
$
|
100.2
|
|
|
$
|
83.9
|
|
|
$
|
88.8
|
|
|
$
|
66.8
|
|
Deferred revenue
|
|
65.7
|
|
|
66.1
|
|
|
66.7
|
|
|
64.8
|
|
|
55.9
|
|
Due to affiliates
|
|
7.3
|
|
|
7.4
|
|
|
7.4
|
|
|
10.8
|
|
|
8.5
|
|
Capital lease obligations
|
|
13.4
|
|
|
14.2
|
|
|
15.0
|
|
|
15.5
|
|
|
16.7
|
|
Long-term debt
|
|
659.8
|
|
|
555.0
|
|
|
525.0
|
|
|
525.0
|
|
|
525.0
|
|
Other financing arrangements
|
|
53.4
|
|
|
55.1
|
|
|
57.1
|
|
|
56.4
|
|
|
56.3
|
|
Total liabilities
|
|
869.5
|
|
|
798.0
|
|
|
755.1
|
|
|
761.3
|
|
|
729.2
|
|
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, $.01 par value, 100,000,000 authorized; no shares
issued or outstanding
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Common stock, $.01 par value, 500,000,000 shares authorized and
38,651,517 and 21,991,669 shares issued and outstanding at December
31, 2014 and December 31, 2013, respectively
|
|
0.4
|
|
|
0.4
|
|
|
0.4
|
|
|
0.2
|
|
|
0.2
|
|
Paid in capital
|
|
516.5
|
|
|
513.7
|
|
|
511.1
|
|
|
342.9
|
|
|
340.7
|
|
Accumulated deficit
|
|
(55.9
|
)
|
|
(40.8
|
)
|
|
(32.7
|
)
|
|
(23.5
|
)
|
|
(18.9
|
)
|
Other Comprehensive Income
|
|
(0.3
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Total shareholders' equity
|
|
460.7
|
|
|
473.3
|
|
|
478.8
|
|
|
319.6
|
|
|
322.0
|
|
Noncontrolling interests
|
|
256.3
|
|
|
266.7
|
|
|
272.2
|
|
|
447.2
|
|
|
455.6
|
|
Total shareholders' equity
|
|
717.0
|
|
|
740.0
|
|
|
$
|
751.0
|
|
|
$
|
766.8
|
|
|
777.6
|
|
Total liabilities and shareholders' equity
|
|
$
|
1,586.5
|
|
|
$
|
1,538.0
|
|
|
$
|
1,506.1
|
|
|
$
|
1,528.1
|
|
|
$
|
1,506.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Condensed Consolidated Statement of Cash Flow
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2014
|
|
Three Months Ended December 31, 2013
|
|
Year Ended December 31, 2014
|
|
Year Ended December 31, 2013
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(11.8
|
)
|
|
$
|
(3.8
|
)
|
|
$
|
(14.5
|
)
|
|
$
|
(35.8
|
)
|
Adjustments to reconcile net loss to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
30.6
|
|
|
26.6
|
|
|
118.0
|
|
|
95.2
|
|
Provision for bad debt write off
|
|
(0.1
|
)
|
|
0.1
|
|
|
0.8
|
|
|
0.4
|
|
Asset impairments
|
|
-
|
|
|
2.8
|
|
|
-
|
|
|
2.8
|
|
Loss on extinguishment of debt
|
|
13.6
|
|
|
-
|
|
|
13.6
|
|
|
1.3
|
|
Noncash interest expense
|
|
0.7
|
|
|
1.3
|
|
|
3.4
|
|
|
4.1
|
|
Deferred income tax expense (benefit), including valuation allowance
change
|
|
-
|
|
|
0.6
|
|
|
-
|
|
|
0.9
|
|
Stock-based compensation expense
|
|
2.7
|
|
|
1.1
|
|
|
10.3
|
|
|
6.2
|
|
Changes in operating assets and liabilities, net of effects of
acquisitions:
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in receivables and other assets
|
|
(5.7
|
)
|
|
(14.8
|
)
|
|
(37.0
|
)
|
|
(25.3
|
)
|
Increase (decrease) in accounts payable and accrued expenses
|
|
(7.2
|
)
|
|
(1.8
|
)
|
|
6.9
|
|
|
5.9
|
|
Increase (decrease) in deferred revenues
|
|
(0.4
|
)
|
|
0.8
|
|
|
9.8
|
|
|
3.1
|
|
(Decrease) Increase in payables to related parties
|
|
0.4
|
|
|
1.7
|
|
|
(0.2
|
)
|
|
19.9
|
|
Other
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.7
|
|
Net cash provided by operating activities
|
|
22.8
|
|
|
14.6
|
|
|
111.1
|
|
|
79.4
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures - acquisitions of real estate
|
|
-
|
|
|
(14.7
|
)
|
|
-
|
|
|
(48.0
|
)
|
Capital expenditures - other
|
|
(89.3
|
)
|
|
(48.3
|
)
|
|
(284.2
|
)
|
|
(180.6
|
)
|
Release of restricted cash
|
|
-
|
|
|
-
|
|
|
-
|
|
|
6.3
|
|
Other
|
|
-
|
|
|
(0.2
|
)
|
|
-
|
|
|
(0.2
|
)
|
Net cash used in investing activities
|
|
(89.3
|
)
|
|
(63.2
|
)
|
|
(284.2
|
)
|
|
(222.5
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stock
|
|
0.1
|
|
|
-
|
|
|
356.0
|
|
|
360.5
|
|
Stock issuance costs
|
|
-
|
|
|
-
|
|
|
(1.3
|
)
|
|
-
|
|
IPO costs
|
|
-
|
|
|
(3.2
|
)
|
|
-
|
|
|
(26.6
|
)
|
Acquisition of operating partnership units
|
|
-
|
|
|
-
|
|
|
(355.9
|
)
|
|
-
|
|
Dividends paid
|
|
(13.5
|
)
|
|
(10.3
|
)
|
|
(50.9
|
)
|
|
(31.0
|
)
|
Borrowings from revolving credit agreement
|
|
285.0
|
|
|
-
|
|
|
315.0
|
|
|
-
|
|
Payments on revolving credit facility
|
|
(30.0
|
)
|
|
-
|
|
|
(30.0
|
)
|
|
-
|
|
Payments on senior notes
|
|
(150.2
|
)
|
|
-
|
|
|
(150.2
|
)
|
|
-
|
|
Payments on capital lease obligations
|
|
0.1
|
|
|
(1.6
|
)
|
|
(3.0
|
)
|
|
(5.9
|
)
|
Payments on financing obligations
|
|
(0.9
|
)
|
|
(0.7
|
)
|
|
(0.9
|
)
|
|
(0.7
|
)
|
Payment to buyout capital leases
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(9.6
|
)
|
Payment to buyout other financing arrangements
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(10.2
|
)
|
Debt issuance costs
|
|
(5.2
|
)
|
|
-
|
|
|
(5.2
|
)
|
|
(1.3
|
)
|
Payment of debt extinguishment costs
|
|
(12.8
|
)
|
|
-
|
|
|
(12.8
|
)
|
|
-
|
|
Contributions from/(distributions to) parent, net
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.2
|
|
Net cash provided by (used in) by financing activities
|
|
72.6
|
|
|
(15.8
|
)
|
|
60.8
|
|
|
275.4
|
|
Net (decrease) increase in cash and cash equivalents
|
|
6.1
|
|
|
(64.4
|
)
|
|
(112.3
|
)
|
|
132.3
|
|
Cash and cash equivalents at beginning of period
|
|
30.4
|
|
|
213.2
|
|
|
148.8
|
|
|
16.5
|
|
Cash and cash equivalents at end of period
|
|
$
|
36.5
|
|
|
$
|
148.8
|
|
|
$
|
36.5
|
|
|
$
|
148.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for interest, net of amount capitalized
|
|
$
|
18.9
|
|
|
$
|
18.9
|
|
|
$
|
41.3
|
|
|
$
|
41.0
|
|
Cash paid for income taxes
|
|
-
|
|
|
-
|
|
|
0.4
|
|
|
-
|
|
Capitalized interest
|
|
1.6
|
|
|
-
|
|
|
4.6
|
|
|
1.6
|
|
Noncash investing and financing transactions:
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of property in accounts payable and other liabilities
|
|
26.8
|
|
|
51.5
|
|
|
26.8
|
|
|
51.5
|
|
Contribution receivable from Parent related to transaction-related
compensation
|
|
-
|
|
|
19.6
|
|
|
-
|
|
|
19.6
|
|
Dividend payable
|
|
14.3
|
|
|
10.4
|
|
|
14.3
|
|
|
10.4
|
|
Deferred IPO costs
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1.7
|
|
Deferred IPO costs reclassified to additional paid in capital
|
|
-
|
|
|
-
|
|
|
-
|
|
|
9.5
|
|
Reclass of equipment to held for sale
|
|
-
|
|
|
0.3
|
|
|
-
|
|
|
0.3
|
|
Noncash additions to fixed assets through other financing
arrangements
|
|
-
|
|
|
4.0
|
|
|
-
|
|
|
4.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Net Operating Income and Reconciliation of Net Income (Loss) to
Adjusted EBITDA
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
|
|
|
Three Months Ended
|
|
|
December 31,
|
|
Change
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
|
2014
|
|
2013
|
|
$
|
|
%
|
|
2014
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
Net Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
330.9
|
|
|
$
|
263.5
|
|
|
$
|
67.4
|
|
|
26%
|
|
$
|
86.9
|
|
|
$
|
84.8
|
|
|
$
|
81.7
|
|
|
$
|
77.5
|
|
|
$
|
72.3
|
|
Property operating expenses
|
|
124.5
|
|
|
93.2
|
|
|
31.3
|
|
|
34%
|
|
32.0
|
|
|
33.0
|
|
|
31.8
|
|
|
27.7
|
|
|
24.3
|
|
Net Operating Income (NOI)
|
|
$
|
206.4
|
|
|
$
|
170.3
|
|
|
$
|
36.1
|
|
|
21%
|
|
$
|
54.9
|
|
|
$
|
51.8
|
|
|
$
|
49.9
|
|
|
$
|
49.8
|
|
|
$
|
48.0
|
|
NOI as a % of Revenue
|
|
62.4
|
%
|
|
64.6
|
%
|
|
|
|
|
|
|
63.2
|
%
|
|
61.1
|
%
|
|
61.1
|
%
|
|
64.3
|
%
|
|
66.4
|
%
|
Reconciliation of Net (Loss) Income to Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
$
|
(14.5
|
)
|
|
$
|
(35.8
|
)
|
|
$
|
21.3
|
|
|
(59)%
|
|
$
|
(11.8
|
)
|
|
$
|
0.2
|
|
|
$
|
(3.6
|
)
|
|
$
|
0.7
|
|
|
$
|
(3.8
|
)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
39.5
|
|
|
43.7
|
|
|
(4.2
|
)
|
|
(10)%
|
|
9.1
|
|
|
9.0
|
|
|
10.7
|
|
|
10.7
|
|
|
11.5
|
|
Other income
|
|
-
|
|
|
(0.1
|
)
|
|
0.1
|
|
|
n/m
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Income tax expense
|
|
1.4
|
|
|
2.3
|
|
|
(0.9
|
)
|
|
(39)%
|
|
0.3
|
|
|
0.4
|
|
|
0.3
|
|
|
0.4
|
|
|
1.1
|
|
Depreciation and amortization
|
|
118.0
|
|
|
95.2
|
|
|
22.8
|
|
|
24%
|
|
30.6
|
|
|
30.0
|
|
|
29.8
|
|
|
27.6
|
|
|
26.6
|
|
Restructuring charges
|
|
-
|
|
|
0.7
|
|
|
(0.7
|
)
|
|
n/m
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Legal claim costs
|
|
-
|
|
|
0.7
|
|
|
(0.7
|
)
|
|
n/m
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Transaction costs
|
|
1.0
|
|
|
1.4
|
|
|
(0.4
|
)
|
|
(29)%
|
|
0.1
|
|
|
-
|
|
|
0.8
|
|
|
0.1
|
|
|
0.2
|
|
Stock-based compensation
|
|
10.3
|
|
|
6.3
|
|
|
4.0
|
|
|
63%
|
|
2.7
|
|
|
2.6
|
|
|
2.8
|
|
|
2.2
|
|
|
1.3
|
|
Asset impairments
|
|
-
|
|
|
2.8
|
|
|
(2.8
|
)
|
|
n/m
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2.8
|
|
Loss on extinguishment of debt
|
|
13.6
|
|
|
1.3
|
|
|
12.3
|
|
|
n/m
|
|
13.6
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Gain on sale of real estate improvements
|
|
-
|
|
|
0.2
|
|
|
(0.2
|
)
|
|
n/m
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.2
|
|
Transaction-related compensation
|
|
-
|
|
|
20.0
|
|
|
(20.0
|
)
|
|
n/m
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Adjusted EBITDA
|
|
$
|
169.3
|
|
|
$
|
138.7
|
|
|
$
|
30.6
|
|
|
22%
|
|
$
|
44.6
|
|
|
$
|
42.2
|
|
|
$
|
40.8
|
|
|
$
|
41.7
|
|
|
$
|
39.9
|
|
Adjusted EBITDA as a % of Revenue
|
|
51.2
|
%
|
|
52.6
|
%
|
|
|
|
|
|
|
51.3
|
%
|
|
49.8
|
%
|
|
49.9
|
%
|
|
53.8
|
%
|
|
55.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Reconciliation of Net Income (Loss) to FFO, Normalized FFO, and
AFFO
(Dollars in millions)
(Unaudited)
|
|
|
|
Year Ended
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
December 31,
|
|
Change
|
|
December 31, 2014
|
|
September 30, 2014
|
|
June 30, 2014
|
|
March 31, 2014
|
|
December 31, 2013
|
2014
|
|
|
2013
|
|
|
$
|
|
%
|
|
|
Reconciliation of Net (Loss) Income to FFO and Normalized FFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
$
|
(14.5
|
)
|
|
$
|
(35.8
|
)
|
|
$
|
21.3
|
|
|
(59
|
)%
|
|
$
|
(11.8
|
)
|
|
$
|
0.2
|
|
|
$
|
(3.6
|
)
|
|
$
|
0.7
|
|
|
$
|
(3.8
|
)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate depreciation and amortization
|
|
95.9
|
|
|
70.6
|
|
|
25.3
|
|
|
36
|
%
|
|
25.1
|
|
|
24.5
|
|
|
24.1
|
|
|
22.2
|
|
|
20.0
|
|
Amortization of customer relationship intangibles
|
|
16.9
|
|
|
16.8
|
|
|
0.1
|
|
|
1
|
%
|
|
4.2
|
|
|
4.2
|
|
|
4.3
|
|
|
4.2
|
|
|
4.2
|
|
Real estate impairments
|
|
-
|
|
|
2.8
|
|
|
(2.8
|
)
|
|
n/m
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2.8
|
|
Gain on sale of real estate improvements
|
|
-
|
|
|
0.2
|
|
|
(0.2
|
)
|
|
n/m
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.2
|
|
Funds from Operations (FFO)
|
|
$
|
98.3
|
|
|
$
|
54.6
|
|
|
43.7
|
|
|
n/m
|
|
$
|
17.5
|
|
|
$
|
28.9
|
|
|
$
|
24.8
|
|
|
$
|
27.1
|
|
|
$
|
23.4
|
|
Transaction-related compensation
|
|
-
|
|
|
20.0
|
|
|
(20.0
|
)
|
|
n/m
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Loss on extinguishment of debt
|
|
13.6
|
|
|
1.3
|
|
|
12.3
|
|
|
n/m
|
|
13.6
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Restructuring charges
|
|
-
|
|
|
0.7
|
|
|
(0.7
|
)
|
|
n/m
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Legal claim costs
|
|
-
|
|
|
0.7
|
|
|
(0.7
|
)
|
|
n/m
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Transaction costs
|
|
1.0
|
|
|
1.4
|
|
|
(0.4
|
)
|
|
(29
|
)%
|
|
0.1
|
|
|
-
|
|
|
0.8
|
|
|
0.1
|
|
|
0.2
|
|
Normalized Funds from Operations (Normalized FFO)
|
|
$
|
112.9
|
|
|
$
|
78.7
|
|
|
$
|
34.2
|
|
|
43
|
%
|
|
$
|
31.2
|
|
|
$
|
28.9
|
|
|
$
|
25.6
|
|
|
$
|
27.2
|
|
|
$
|
23.6
|
|
Normalized FFO per diluted common share or common share equivalent
|
|
$
|
1.73
|
|
|
$
|
1.22
|
|
|
$
|
0.51
|
|
|
42
|
%
|
|
$
|
0.48
|
|
|
$
|
0.44
|
|
|
$
|
0.39
|
|
|
$
|
0.42
|
|
|
$
|
0.37
|
|
Weighted Average diluted common share and common share equivalent
outstanding
|
|
65.3
|
|
|
64.6
|
|
|
0.7
|
|
|
1
|
%
|
|
65.3
|
|
|
65.3
|
|
|
65.3
|
|
|
65.0
|
|
|
64.6
|
|
Reconciliation of Normalized FFO to AFFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized FFO
|
|
$
|
112.9
|
|
|
$
|
78.7
|
|
|
34.2
|
|
|
43
|
%
|
|
$
|
31.2
|
|
|
$
|
28.9
|
|
|
$
|
25.6
|
|
|
$
|
27.2
|
|
|
$
|
23.6
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of deferred financing costs
|
|
3.4
|
|
|
4.1
|
|
|
(0.7
|
)
|
|
(17
|
)%
|
|
0.7
|
|
|
0.9
|
|
|
0.9
|
|
|
0.9
|
|
|
1.3
|
|
Stock-based compensation
|
|
10.3
|
|
|
6.3
|
|
|
4.0
|
|
|
63
|
%
|
|
2.7
|
|
|
2.6
|
|
|
2.8
|
|
|
2.2
|
|
|
1.3
|
|
Non-real estate depreciation and amortization
|
|
5.2
|
|
|
7.8
|
|
|
(2.6
|
)
|
|
(33
|
)%
|
|
1.4
|
|
|
1.2
|
|
|
1.4
|
|
|
1.2
|
|
|
2.4
|
|
Deferred revenue and straight line rent adjustments
|
|
(10.5
|
)
|
|
(13.9
|
)
|
|
3.4
|
|
|
(24
|
)%
|
|
(2.3
|
)
|
|
(1.5
|
)
|
|
(3.7
|
)
|
|
(3.0
|
)
|
|
(4.2
|
)
|
Leasing commissions
|
|
(5.8
|
)
|
|
(6.8
|
)
|
|
1.0
|
|
|
(15
|
)%
|
|
(2.9
|
)
|
|
(0.9
|
)
|
|
(1.4
|
)
|
|
(0.6
|
)
|
|
(1.7
|
)
|
Recurring capital expenditures
|
|
(3.8
|
)
|
|
(4.2
|
)
|
|
0.4
|
|
|
(10
|
)%
|
|
(1.0
|
)
|
|
(2.1
|
)
|
|
(0.3
|
)
|
|
(0.4
|
)
|
|
(1.9
|
)
|
Deferred income tax expense
|
|
-
|
|
|
0.4
|
|
|
(0.4
|
)
|
|
n/m
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Adjusted Funds from Operations (AFFO)
|
|
$
|
111.7
|
|
|
$
|
72.4
|
|
|
$
|
39.3
|
|
|
54
|
%
|
|
$
|
29.8
|
|
|
$
|
29.1
|
|
|
$
|
25.3
|
|
|
$
|
27.5
|
|
|
$
|
20.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Market Capitalization Summary and Reconciliation of Net Debt
(Unaudited)
|
|
Market Capitalization
|
|
|
Shares or
Equivalents
Outstanding
|
|
Market Price
as of
December 31, 2014
|
|
Market Value
Equivalents
(in millions)
|
Common shares
|
|
38,651,517
|
|
|
$
|
27.55
|
|
|
$
|
1,064.8
|
|
Operating Partnership units
|
|
26,601,835
|
|
|
$
|
27.55
|
|
|
732.9
|
|
Net Debt
|
|
|
|
|
|
|
|
636.7
|
|
Total Enterprise Value (TEV)
|
|
|
|
|
|
|
|
$
|
2,434.4
|
|
Net Debt as a % of TEV
|
|
|
|
|
|
|
|
26.2
|
%
|
Net Debt to LQA Adjusted EBITDA
|
|
|
|
|
|
|
|
3.6x
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Debt
|
(dollars in millions)
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
|
2014
|
|
|
2014
|
|
|
2014
|
|
|
2014
|
|
|
2013
|
|
Long-term debt
|
|
$
|
659.8
|
|
|
$
|
555.0
|
|
|
$
|
525.0
|
|
|
$
|
525.0
|
|
|
$
|
525.0
|
|
Capital lease obligations
|
|
13.4
|
|
|
14.2
|
|
|
15.0
|
|
|
15.5
|
|
|
16.7
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
(36.5
|
)
|
|
(30.4
|
)
|
|
(49.3
|
)
|
|
(125.2
|
)
|
|
(148.8
|
)
|
Net Debt
|
|
$
|
636.7
|
|
|
$
|
538.8
|
|
|
$
|
490.7
|
|
|
$
|
415.3
|
|
|
$
|
392.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Colocation Square Footage (CSF) and Utilization
(Unaudited)
|
|
|
|
As of December 31, 2014
|
|
As of December 31, 2013
|
Market
|
|
Colocation Space (CSF)(a)
|
|
CSF Utilized(b)
|
|
Colocation Space (CSF)(a)
|
|
CSF Utilized(b)
|
Cincinnati
|
|
420,223
|
|
|
90%
|
|
419,231
|
|
|
89%
|
Dallas
|
|
294,969
|
|
|
86%
|
|
231,598
|
|
|
80%
|
Houston
|
|
255,094
|
|
|
85%
|
|
230,718
|
|
|
91%
|
Phoenix
|
|
114,026
|
|
|
100%
|
|
36,654
|
|
|
67%
|
Austin
|
|
59,995
|
|
|
87%
|
|
54,003
|
|
|
69%
|
San Antonio
|
|
43,843
|
|
|
100%
|
|
43,487
|
|
|
100%
|
Chicago
|
|
23,298
|
|
|
58%
|
|
23,298
|
|
|
52%
|
International
|
|
13,200
|
|
|
80%
|
|
13,200
|
|
|
78%
|
Total Footprint
|
|
1,224,648
|
|
|
88%
|
|
1,052,189
|
|
|
85%
|
(a)
|
CSF represents the NRSF at an operating facility that is currently
leased or readily available for lease as colocation space, where
customers locate their servers and other IT equipment.
|
(b)
|
Utilization is calculated by dividing CSF under signed leases for
colocation space (whether or not the customer has occupied the
space) by total CSF.
|
|
|
|
CyrusOne Inc.
2015 Guidance
(Unaudited)
|
|
Category
|
|
2014 Results
|
|
2015 Guidance
|
Total Revenue
|
|
$331 million
|
|
$370 - $385 million
|
Base Revenue
|
|
$290 million
|
|
$322 - $332 million
|
Metered Power Reimbursements
|
|
$41 million
|
|
$48 - $53 million
|
Adjusted EBITDA
|
|
$169 million
|
|
$185 - $195 million
|
Normalized FFO per diluted common share or common share equivalent*
|
|
$1.73
|
|
$1.90 - $2.00
|
|
|
|
|
|
Capital Expenditures
|
|
$284 million
|
|
$215 - $240 million
|
Development**
|
|
$280 million
|
|
$210 - $230 million
|
Recurring
|
|
$4 million
|
|
$5 - $10 million
|
|
|
|
|
|
*
|
Assumes weighted average diluted common share or common share
equivalents for 2015 of 66 million.
|
**
|
Development capital is inclusive of capital used for the acquisition
of land for future development.
|
The annual guidance provided above represents forward-looking
statements, which are based on current economic conditions, internal
assumptions about the Company's existing customer base and the supply
and demand dynamics of the markets in which CyrusOne operates.
|
CyrusOne Inc.
Data Center Portfolio
As of December 31, 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
Operating Net Rentable Square Feet (NRSF)(a)
|
|
Powered Shell Available for
Future Development (NRSF)(j)
|
|
Available UPS Capacity (MW)(k)
|
Facilities
|
|
Metro Area
|
|
Annualized Rent(b)
|
|
Colocation Space (CSF)(c)
|
|
CSF Leased(d)
|
|
CSF Utilized (e)
|
|
Office & Other(f)
|
|
Office & Other Leased(g)
|
|
Supporting Infrastructure(h)
|
|
Total(i)
|
|
Westway Park Blvd., Houston, TX (Houston West 1)
|
|
Houston
|
|
$
|
52,457,037
|
|
|
112,133
|
|
|
97%
|
|
97%
|
|
10,563
|
|
|
98%
|
|
37,063
|
|
|
159,759
|
|
|
3,000
|
|
|
28
|
S. State Highway 121 Business Lewisville, TX (Lewisville)*
|
|
Dallas
|
|
38,366,836
|
|
|
108,687
|
|
|
96%
|
|
97%
|
|
11,279
|
|
|
96%
|
|
59,345
|
|
|
179,311
|
|
|
-
|
|
|
18
|
West Seventh St., Cincinnati, OH (7th Street)***
|
|
Cincinnati
|
|
35,253,793
|
|
|
212,664
|
|
|
92%
|
|
92%
|
|
5,744
|
|
|
100%
|
|
171,561
|
|
|
389,969
|
|
|
37,000
|
|
|
13
|
Southwest Fwy., Houston, TX (Galleria)
|
|
Houston
|
|
33,512,474
|
|
|
63,469
|
|
|
77%
|
|
77%
|
|
23,259
|
|
|
51%
|
|
24,927
|
|
|
111,655
|
|
|
-
|
|
|
14
|
W. Frankford, Carrollton, TX (Frankford)
|
|
Dallas
|
|
25,322,096
|
|
|
170,627
|
|
|
77%
|
|
78%
|
|
13,745
|
|
|
71%
|
|
66,020
|
|
|
250,392
|
|
|
272,000
|
|
|
18
|
South Ellis Street Chandler, AZ (Phoenix 1)
|
|
Phoenix
|
|
20,937,731
|
|
|
77,504
|
|
|
99%
|
|
100%
|
|
34,471
|
|
|
10%
|
|
38,441
|
|
|
150,416
|
|
|
31,000
|
|
|
27
|
Kingsview Dr., Lebanon, OH (Lebanon)
|
|
Cincinnati
|
|
20,031,449
|
|
|
65,303
|
|
|
83%
|
|
84%
|
|
44,886
|
|
|
72%
|
|
52,950
|
|
|
163,139
|
|
|
65,000
|
|
|
14
|
Westover Hills Blvd, San Antonio, TX (San Antonio 1)
|
|
San Antonio
|
|
18,637,788
|
|
|
43,843
|
|
|
100%
|
|
100%
|
|
5,989
|
|
|
89%
|
|
45,606
|
|
|
95,438
|
|
|
11,000
|
|
|
12
|
Industrial Rd., Florence, KY (Florence)
|
|
Cincinnati
|
|
16,345,633
|
|
|
52,698
|
|
|
100%
|
|
100%
|
|
46,848
|
|
|
87%
|
|
40,374
|
|
|
139,920
|
|
|
-
|
|
|
9
|
Westway Park Blvd., Houston, TX (Houston West 2)
|
|
Houston
|
|
12,919,914
|
|
|
79,492
|
|
|
73%
|
|
74%
|
|
3,112
|
|
|
59%
|
|
56,432
|
|
|
139,036
|
|
|
12,000
|
|
|
12
|
Metropolis Dr., Austin, TX (Austin 2)
|
|
Austin
|
|
9,644,277
|
|
|
43,772
|
|
|
78%
|
|
87%
|
|
912
|
|
|
79%
|
|
22,666
|
|
|
67,350
|
|
|
-
|
|
|
5
|
Knightsbridge Dr., Hamilton, OH (Hamilton)*
|
|
Cincinnati
|
|
9,235,796
|
|
|
46,565
|
|
|
77%
|
|
78%
|
|
1,077
|
|
|
100%
|
|
35,336
|
|
|
82,978
|
|
|
-
|
|
|
10
|
Parkway Dr., Mason, OH (Mason)
|
|
Cincinnati
|
|
6,022,440
|
|
|
34,072
|
|
|
100%
|
|
100%
|
|
26,458
|
|
|
98%
|
|
17,193
|
|
|
77,723
|
|
|
-
|
|
|
4
|
E. Ben White Blvd., Austin, TX (Austin 1)*
|
|
Austin
|
|
5,634,831
|
|
|
16,223
|
|
|
87%
|
|
87%
|
|
21,476
|
|
|
100%
|
|
7,517
|
|
|
45,216
|
|
|
-
|
|
|
2
|
Kestral Way (London)**
|
|
London
|
|
5,488,782
|
|
|
10,000
|
|
|
99%
|
|
99%
|
|
-
|
|
|
-%
|
|
-
|
|
|
10,000
|
|
|
-
|
|
|
1
|
Midway Rd., Carrollton, TX (Midway)**
|
|
Dallas
|
|
5,408,662
|
|
|
8,390
|
|
|
100%
|
|
100%
|
|
-
|
|
|
-%
|
|
-
|
|
|
8,390
|
|
|
-
|
|
|
1
|
South Ellis Street Chandler, AZ (Phoenix 2)
|
|
Phoenix
|
|
2,349,948
|
|
|
36,522
|
|
|
100%
|
|
100%
|
|
5,540
|
|
|
36%
|
|
20,784
|
|
|
62,846
|
|
|
-
|
|
|
6
|
Springer St., Lombard, IL (Lombard)
|
|
Chicago
|
|
2,229,308
|
|
|
13,516
|
|
|
73%
|
|
74%
|
|
4,115
|
|
|
100%
|
|
12,230
|
|
|
29,861
|
|
|
29,000
|
|
|
3
|
Marsh Lane, Carrollton, TX (Marsh Ln)**
|
|
Dallas
|
|
2,226,028
|
|
|
4,245
|
|
|
100%
|
|
100%
|
|
-
|
|
|
-%
|
|
-
|
|
|
4,245
|
|
|
-
|
|
|
1
|
Goldcoast Dr., Cincinnati, OH (Goldcoast)
|
|
Cincinnati
|
|
1,484,798
|
|
|
2,728
|
|
|
100%
|
|
100%
|
|
5,280
|
|
|
100%
|
|
16,483
|
|
|
24,491
|
|
|
14,000
|
|
|
1
|
Bryan St., Dallas, TX (Bryan St)**
|
|
Dallas
|
|
908,954
|
|
|
3,020
|
|
|
51%
|
|
51%
|
|
-
|
|
|
-%
|
|
-
|
|
|
3,020
|
|
|
-
|
|
|
1
|
McAuley Place, Blue Ash, OH (Blue Ash)*
|
|
Cincinnati
|
|
529,162
|
|
|
6,193
|
|
|
39%
|
|
39%
|
|
6,950
|
|
|
100%
|
|
2,166
|
|
|
15,309
|
|
|
-
|
|
|
1
|
E. Monroe St., South Bend, IN (Monroe St.)
|
|
South Bend
|
|
446,245
|
|
|
6,350
|
|
|
33%
|
|
33%
|
|
-
|
|
|
-%
|
|
6,478
|
|
|
12,828
|
|
|
4,000
|
|
|
1
|
Crescent Circle, South Bend, IN (Blackthorn)*
|
|
South Bend
|
|
361,582
|
|
|
3,432
|
|
|
43%
|
|
43%
|
|
-
|
|
|
-%
|
|
5,125
|
|
|
8,557
|
|
|
11,000
|
|
|
1
|
Jurong East (Singapore)**
|
|
Singapore
|
|
316,189
|
|
|
3,200
|
|
|
19%
|
|
19%
|
|
-
|
|
|
-%
|
|
-
|
|
|
3,200
|
|
|
-
|
|
|
1
|
Total
|
|
|
|
$
|
326,071,753
|
|
|
1,224,648
|
|
|
88%
|
|
88%
|
|
271,704
|
|
|
74%
|
|
738,697
|
|
|
2,235,049
|
|
|
489,000
|
|
|
198
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Indicates properties in which we hold a leasehold interest in the
building shell and land. All data center infrastructure has been
constructed by us and owned by us.
|
**
|
Indicates properties in which we hold a leasehold interest in the
building shell, land, and all data center infrastructure.
|
***
|
The information provided for the West Seventh Street (7th St.)
property includes data for two facilities, one of which we lease and
one of which we own.
|
|
|
(a)
|
Represents the total square feet of a building under lease or
available for lease based on engineers' drawings and estimates but
does not include space held for development or space used by
CyrusOne.
|
(b)
|
Represents monthly contractual rent (defined as cash rent including
customer reimbursements for metered power) under existing customer
leases as of December 31, 2014, multiplied by 12. For the month of
December 2014, our total portfolio annualized rent was $326.1
million, customer reimbursements were $46.2 million annualized and
consisted of reimbursements by customers across all facilities with
separately metered power. Customer reimbursements under leases with
separately metered power vary from month-to-month based on factors
such as our customers' utilization of power and the suppliers'
pricing of power. From January 1, 2013 through December 31, 2014,
customer reimbursements under leases with separately metered power
constituted between 8.9% and 14.2% of annualized rent. After giving
effect to abatements, free rent and other straight-line adjustments,
our annualized effective rent as of December 31, 2014 was $336.5
million. Our annualized effective rent was greater than our
annualized rent as of December 31, 2014 because our positive
straight-line and other adjustments and amortization of deferred
revenue exceeded our negative straight-line adjustments due to
factors such as the timing of contractual rent escalations and
customer prepayments for services.
|
(c)
|
CSF represents the NRSF at an operating facility that is currently
leased or readily available for lease as colocation space, where
customers locate their servers and other IT equipment.
|
(d)
|
Percent leased is determined based on CSF being billed to customers
under signed leases as of December 31, 2014 divided by total CSF.
Leases signed but not commenced as of December 2014 are not included.
|
(e)
|
Utilization is calculated by dividing CSF under signed leases for
colocation space (whether or not the customer has occupied the
space) by total CSF.
|
(f)
|
Represents the NRSF at an operating facility that is currently
leased or readily available for lease as space other than CSF, which
is typically office and other space.
|
(g)
|
Percent leased is determined based on Office & Other space being
billed to customers under signed leases as of December 31, 2014
divided by total Office & Other space. Leases signed but not
commenced as of December 2014 are not included.
|
(h)
|
Represents infrastructure support space, including mechanical,
telecommunications and utility rooms, as well as building common
areas.
|
(i)
|
Represents the NRSF at an operating facility that is currently
leased or readily available for lease. This excludes existing vacant
space held for development.
|
(j)
|
Represents space that is under roof that could be developed in the
future for operating NRSF, rounded to the nearest 1,000.
|
(k)
|
UPS capacity (also referred to as critical load) represents the
aggregate power available for lease and exclusive use by customers
from the facility's installed universal power supplies (UPS)
expressed in terms of megawatts. The capacity reported is for
non-redundant megawatts, as we can develop flexible solutions to our
customers at multiple resiliency levels. Does not sum to total due
to rounding.
|
|
|
CyrusOne Inc.
NRSF Under Development
As of December 31, 2014
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
NRSF Under Development (a)
|
|
|
|
|
Under Development Costs(b)
|
Facilities
|
|
Metro
Area
|
|
Colocation
Space
(CSF)
|
|
Office
& Other
|
|
Supporting
Infrastructure
|
|
Powered Shell(c)
|
|
Total
|
|
UPS MW Capacity (d)
|
|
Actual
to
Date(e)
|
|
Estimated Costs to Completion
|
|
Total
|
W. Frankford Rd. (Carrollton)
|
|
Dallas
|
|
56,000
|
|
|
12,000
|
|
|
18,000
|
|
|
-
|
|
|
86,000
|
|
|
3.0
|
|
|
$
|
4
|
|
|
$16-20
|
|
$20-24
|
Westover Hills Blvd. (San Antonio 2)
|
|
San Antonio
|
|
30,000
|
|
|
20,000
|
|
|
25,000
|
|
|
49,000
|
|
|
124,000
|
|
|
3.0
|
|
|
26
|
|
|
14-17
|
|
40-43
|
Westway Park Blvd. (Houston West 3)
|
|
Houston
|
|
60,000
|
|
|
10,000
|
|
|
10,000
|
|
|
249,000
|
|
|
329,000
|
|
|
6.0
|
|
|
29
|
|
|
24-30
|
|
53-59
|
South Ellis Street, Chandler, AZ (Phoenix 2)
|
|
Phoenix
|
|
36,000
|
|
|
-
|
|
|
4,000
|
|
|
-
|
|
|
40,000
|
|
|
-
|
|
|
3
|
|
|
1-2
|
|
4-5
|
Ridgetop Circle, Sterling, VA (Northern VA)
|
|
Northern Virginia
|
|
30,000
|
|
|
16,000
|
|
|
35,000
|
|
|
48,000
|
|
|
129,000
|
|
|
6.0
|
|
|
39
|
|
|
4-5
|
|
44-45
|
Total
|
|
|
|
212,000
|
|
|
58,000
|
|
|
92,000
|
|
|
346,000
|
|
|
708,000
|
|
|
18.0
|
|
|
$
|
101
|
|
|
$59-74
|
|
$161-176
|
(a)
|
Represents NRSF at a facility for which activities have commenced or
are expected to commence in the next 2 quarters to prepare the space
for its intended use. Estimates and timing are subject to change.
|
(b)
|
Represents management's estimate of the total costs required to
complete the current NRSF under development. There may be an
increase in costs if customers require greater power density.
|
(c)
|
Represents NRSF under construction that, upon completion, will be
powered shell available for future development into operating NRSF.
|
(d)
|
UPS Capacity (also referred to as critical load) represents the
aggregate power available for lease to and exclusive use by
customers from the facility's installed universal power supplies
(UPS) expressed in terms of megawatts. The capacity presented is for
non-redundant megawatts, as we can develop flexible solutions to our
customers at multiple resiliency levels.
|
(e)
|
Capex-to-date is the cash investment as of December 31, 2014. There
may be accruals above this amount for work completed, for which cash
has not yet been paid.
|
|
|
CyrusOne Inc.
Land Available for Future Development (Acres)
As of December 31, 2014
(Unaudited)
|
|
|
|
|
|
As of
|
Market
|
|
December 31, 2014
|
Cincinnati
|
|
98
|
Dallas
|
|
-
|
Houston
|
|
20
|
Virginia
|
|
10
|
Austin
|
|
22
|
Phoenix
|
|
37
|
San Antonio
|
|
13
|
Chicago
|
|
-
|
International
|
|
-
|
Total Available
|
|
200
|
|
|
|
CyrusOne Inc.
Leasing Statistics - Lease Signings
As of December 31, 2014
(Dollars in thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized
|
|
Weighted
|
|
|
Number
|
|
Total CSF
|
|
Total kW
|
|
GAAP
|
|
Average
|
Period
|
|
of Leases(a)
|
|
Signed(b)
|
|
Signed(c)
|
|
Revenue ($000)(d)
|
|
Lease Term(e)
|
Q4'14
|
|
335
|
|
44,000
|
|
5,262
|
|
$11,397
|
|
69
|
Prior 4Q Avg.
|
|
279
|
|
59,750
|
|
11,033
|
|
$13,845
|
|
69
|
Q3'14
|
|
287
|
|
33,000
|
|
3,410
|
|
$8,332
|
|
79
|
Q2'14
|
|
275
|
|
59,000
|
|
17,374
|
|
$17,215
|
|
91
|
Q1'14
|
|
270
|
|
100,000
|
|
16,058
|
|
$18,075
|
|
64
|
Q4'13
|
|
283
|
|
47,000
|
|
7,250
|
|
$11,756
|
|
43
|
(a)
|
Number of leases represents each agreement with a customer. A lease
agreement could include multiple spaces, and a customer could have
multiple leases.
|
(b)
|
CSF represents the NRSF at an operating facility that is leased as
colocation space, where customers locate their servers and other IT
equipment.
|
(c)
|
Represents maximum contracted kW that customers may draw during
lease period. Additionally, we can develop flexible solutions for
our customers at multiple resiliency levels, and the kW signed is
unadjusted for this factor.
|
(d)
|
Excludes estimates for pass-through power. Annualized GAAP revenue
is equal to monthly recurring rent, defined as average monthly
contractual rent during the term of the lease, multiplied by 12.
|
(e)
|
Calculated on a CSF-weighted basis.
|
|
|
CyrusOne Inc.
New MRR Signed - Existing vs. New Customers
As of December 31, 2014
(Dollars in thousands)
(Unaudited)
|
|
|
|
New MRR(a) Signed ($000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1'13
|
|
Q2'13
|
|
Q3'13
|
|
Q4'13
|
|
Q1'14
|
|
Q2'14
|
|
Q3'14
|
|
Q4'14
|
Existing Customers
|
|
$
|
466
|
|
|
$
|
466
|
|
|
$
|
1,390
|
|
|
$
|
618
|
|
|
$
|
716
|
|
|
$
|
844
|
|
|
$
|
347
|
|
|
$
|
768
|
|
New Customers
|
|
$
|
343
|
|
|
$
|
426
|
|
|
$
|
474
|
|
|
$
|
362
|
|
|
$
|
790
|
|
|
$
|
591
|
|
|
$
|
347
|
|
|
$
|
182
|
|
Total
|
|
$
|
809
|
|
|
$
|
892
|
|
|
$
|
1,864
|
|
|
$
|
980
|
|
|
$
|
1,506
|
|
|
$
|
1,435
|
|
|
$
|
694
|
|
|
$
|
950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% from Existing Customers
|
|
|
58
|
%
|
|
|
52
|
%
|
|
|
75
|
%
|
|
|
63
|
%
|
|
|
48
|
%
|
|
|
59
|
%
|
|
|
50
|
%
|
|
|
81
|
%
|
(a)
|
Monthly recurring rent is defined as average monthly contractual
rent during the term of the lease. Contractual rent does not include
metered power reimbursements.
|
|
|
CyrusOne Inc.
Customer Diversification(a)
As of December 31, 2014
(Unaudited)
|
|
|
|
|
Principal Customer Industry
|
|
Number of Locations
|
|
Annualized Rent(b)
|
|
Percentage of Portfolio Annualized Rent(c)
|
|
Weighted Average Remaining Lease
Term in Months(d)
|
1
|
|
|
Energy
|
|
2
|
|
$
|
21,670,137
|
|
|
6.6%
|
|
34.2
|
2
|
|
|
Telecommunications (CBI)(e)
|
|
8
|
|
20,188,964
|
|
|
6.2%
|
|
18.4
|
3
|
|
|
Information Technology
|
|
1
|
|
15,473,502
|
|
|
4.7%
|
|
51.0
|
4
|
|
|
Information Technology
|
|
3
|
|
15,401,712
|
|
|
4.7%
|
|
42.2
|
5
|
|
|
Telecommunication Services
|
|
2
|
|
15,179,310
|
|
|
4.7%
|
|
37.8
|
6
|
|
|
Research and Consulting Services
|
|
3
|
|
14,715,147
|
|
|
4.5%
|
|
16.3
|
7
|
|
|
Energy
|
|
5
|
|
13,281,282
|
|
|
4.1%
|
|
7.9
|
8
|
|
|
Information Technology
|
|
2
|
|
9,736,358
|
|
|
3.0%
|
|
30.0
|
9
|
|
|
Financials
|
|
1
|
|
6,000,225
|
|
|
1.8%
|
|
65.0
|
10
|
|
|
Telecommunication Services
|
|
5
|
|
5,265,673
|
|
|
1.6%
|
|
52.0
|
11
|
|
|
Energy
|
|
2
|
|
4,944,360
|
|
|
1.5%
|
|
19.0
|
12
|
|
|
Information Technology
|
|
1
|
|
4,830,477
|
|
|
1.5%
|
|
11.4
|
13
|
|
|
Energy
|
|
1
|
|
4,805,574
|
|
|
1.5%
|
|
14.7
|
14
|
|
|
Consumer Staples
|
|
1
|
|
4,788,363
|
|
|
1.5%
|
|
88.1
|
15
|
|
|
Information Technology
|
|
1
|
|
4,665,712
|
|
|
1.4%
|
|
74.0
|
16
|
|
|
Information Technology
|
|
2
|
|
4,063,820
|
|
|
1.2%
|
|
63.2
|
17
|
|
|
Financials
|
|
6
|
|
3,955,165
|
|
|
1.2%
|
|
61.1
|
18
|
|
|
Energy
|
|
4
|
|
3,942,776
|
|
|
1.2%
|
|
10.6
|
19
|
|
|
Energy
|
|
1
|
|
3,729,003
|
|
|
1.1%
|
|
17.3
|
20
|
|
|
Energy
|
|
2
|
|
3,423,904
|
|
|
1.1%
|
|
24.9
|
|
|
|
|
|
|
|
$
|
180,061,464
|
|
|
55.1%
|
|
33.9
|
(a)
|
Includes affiliates.
|
(b)
|
Represents monthly contractual rent (defined as cash rent including
customer reimbursements for metered power) under existing customer
leases as of December 31, 2014, multiplied by 12. For the month of
December 2014, our total portfolio annualized rent was $326.1
million, and customer reimbursements were $46.2 million annualized,
consisting of reimbursements by customers across all facilities with
separately metered power. Customer reimbursements under leases with
separately metered power vary from month-to-month based on factors
such as our customers' utilization of power and the suppliers'
pricing of power. From January 1, 2013 through December 31, 2014,
customer reimbursements under leases with separately metered power
constituted between 8.9% and 14.2% of annualized rent. After giving
effect to abatements, free rent and other straight-line adjustments,
our annualized effective rent for our total portfolio as of December
31, 2014 was $336.5 million. Our annualized effective rent was
greater than our annualized rent as of December 31, 2014 because our
positive straight-line and other adjustments and amortization of
deferred revenue exceeded our negative straight-line adjustments due
to factors such as the timing of contractual rent escalations and
customer prepayments for services.
|
(c)
|
Represents the customer's total annualized rent divided by the total
annualized rent in the portfolio as of December 31, 2014, which was
approximately $326.1 million.
|
(d)
|
Weighted average based on customer's percentage of total annualized
rent expiring and is as of December 31, 2014, assuming that
customers exercise no renewal options and exercise all early
termination rights that require payment of less than 50% of the
remaining rents. Early termination rights that require payment of
50% or more of the remaining lease payments are not assumed to be
exercised because such payments approximate the profitability margin
of leasing that space to the customer, such that we do not consider
early termination to be economically detrimental to us.
|
(e)
|
Includes information for both Cincinnati Bell Technology Solutions
(CBTS) and Cincinnati Bell Telephone and two customers that have
contracts with CBTS. We expect the contracts for these two customers
to be assigned to us, but the consents for such assignments have not
yet been obtained. Excluding these customers, Cincinnati Bell Inc.
and subsidiaries represented 2.4% of our annualized rent as of
December 31, 2014.
|
|
|
CyrusOne Inc.
Lease Distribution
As of December 31, 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NRSF Under Lease(a)
|
|
Number of
Customers(b)
|
|
Percentage of
All Customers
|
|
Total
Leased
NRSF(c)
|
|
Percentage of
Portfolio
Leased NRSF
|
|
Annualized
Rent(d)
|
|
Percentage of
Annualized Rent
|
0-999
|
|
484
|
|
|
73%
|
|
95,342
|
|
|
5%
|
|
$
|
37,213,773
|
|
|
11%
|
1,000-2,499
|
|
66
|
|
|
10%
|
|
99,148
|
|
|
5%
|
|
20,428,533
|
|
|
6%
|
2,500-4,999
|
|
39
|
|
|
6%
|
|
141,283
|
|
|
7%
|
|
26,318,396
|
|
|
8%
|
5,000-9,999
|
|
31
|
|
|
5%
|
|
220,539
|
|
|
12%
|
|
55,091,724
|
|
|
17%
|
10,000+
|
|
40
|
|
|
6%
|
|
1,359,823
|
|
|
71%
|
|
187,019,327
|
|
|
58%
|
Total
|
|
660
|
|
|
100%
|
|
1,916,135
|
|
|
100%
|
|
$
|
326,071,753
|
|
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Represents all leases in our portfolio, including colocation, office
and other leases.
|
(b)
|
Represents the number of customers occupying data center, office and
other space as of December 31, 2014. This may vary from total
customer count as some customers may be under contract, but have yet
to occupy space.
|
(c)
|
Represents the total square feet at a facility under lease and that
has commenced billing, excluding space held for development or space
used by CyrusOne. A customer's leased NRSF is estimated based on
such customer's direct CSF or office and light-industrial space plus
management's estimate of infrastructure support space, including
mechanical, telecommunications and utility rooms, as well as
building common areas.
|
(d)
|
Represents monthly contractual rent (defined as cash rent including
customer reimbursements for metered power) under existing customer
leases as of December 31, 2014, multiplied by 12. For the month of
December 2014, customer reimbursements were $46.2 million annualized
and consisted of reimbursements by customers across all facilities
with separately metered power. Customer reimbursements under leases
with separately metered power vary from month-to-month based on
factors such as our customers' utilization of power and the
suppliers' pricing of power. From January 1, 2013 through December
31, 2014, customer reimbursements under leases with separately
metered power constituted between 8.9% and 14.2% of annualized rent.
After giving effect to abatements, free rent and other straight-line
adjustments, our annualized effective rent as of December 31, 2014
was $336.5 million. Our annualized effective rent was greater than
our annualized rent as of December 31, 2014 because our positive
straight-line and other adjustments and amortization of deferred
revenue exceeded our negative straight-line adjustments due to
factors such as the timing of contractual rent escalations and
customer prepayments for services.
|
|
|
CyrusOne Inc.
Lease Expirations
As of December 31, 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year(a)
|
|
Number of Leases Expiring(b)
|
|
Total Operating NRSF Expiring
|
|
Percentage of Total NRSF
|
|
Annualized Rent(c)
|
|
Percentage of Annualized Rent
|
|
Annualized Rent at Expiration(d)
|
|
Percentage of Annualized Rent at
Expiration
|
Available
|
|
|
|
|
318,914
|
|
|
14%
|
|
|
|
|
|
|
|
|
|
Month-to-Month
|
|
179
|
|
|
29,404
|
|
|
1%
|
|
$
|
11,797,455
|
|
|
4%
|
|
$
|
11,821,342
|
|
3%
|
2015
|
|
889
|
|
|
405,588
|
|
|
18%
|
|
72,881,716
|
|
|
22%
|
|
78,293,399
|
|
22%
|
2016
|
|
583
|
|
|
273,516
|
|
|
12%
|
|
67,050,718
|
|
|
21%
|
|
67,652,797
|
|
19%
|
2017
|
|
749
|
|
|
325,430
|
|
|
15%
|
|
50,141,151
|
|
|
15%
|
|
52,195,763
|
|
15%
|
2018
|
|
223
|
|
|
218,922
|
|
|
10%
|
|
43,240,350
|
|
|
13%
|
|
47,044,582
|
|
14%
|
2019
|
|
200
|
|
|
250,368
|
|
|
11%
|
|
35,707,357
|
|
|
11%
|
|
38,961,034
|
|
11%
|
2020
|
|
78
|
|
|
164,719
|
|
|
8%
|
|
17,718,630
|
|
|
5%
|
|
19,571,243
|
|
6%
|
2021
|
|
71
|
|
|
74,347
|
|
|
3%
|
|
14,976,412
|
|
|
5%
|
|
16,455,928
|
|
5%
|
2022
|
|
3
|
|
|
31,369
|
|
|
1%
|
|
3,267,554
|
|
|
1%
|
|
3,578,407
|
|
1%
|
2023
|
|
43
|
|
|
59,823
|
|
|
3%
|
|
6,262,053
|
|
|
2%
|
|
7,662,408
|
|
2%
|
2024 - Thereafter
|
|
10
|
|
|
82,649
|
|
|
4%
|
|
3,028,357
|
|
|
1%
|
|
6,958,380
|
|
2%
|
Total
|
|
3,028
|
|
|
2,235,049
|
|
|
100%
|
|
$
|
326,071,753
|
|
|
100%
|
|
$
|
350,195,283
|
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Leases that were auto-renewed prior to December 31, 2014 are shown
in the calendar year in which their current auto-renewed term
expires. Unless otherwise stated in the footnotes, the information
set forth in the table assumes that customers exercise no renewal
options and exercise all early termination rights that require
payment of less than 50% of the remaining rents. Early termination
rights that require payment of 50% or more of the remaining lease
payments are not assumed to be exercised.
|
(b)
|
Number of leases represents each agreement with a customer. A lease
agreement could include multiple spaces and a customer could have
multiple leases.
|
(c)
|
Represents monthly contractual rent (defined as cash rent including
customer reimbursements for metered power) under existing customer
leases as of December 31, 2014, multiplied by 12. For the month of
December 2014, our total portfolio annualized rent was $326.1
million, customer reimbursements were $46.2 million annualized and
consisted of reimbursements by customers across all facilities with
separately metered power. Customer reimbursements under leases with
separately metered power vary from month-to-month based on factors
such as our customers' utilization of power and the suppliers'
pricing of power. From January 1, 2013 through December 31, 2014,
customer reimbursements under leases with separately metered power
constituted between 8.9% and 14.2% of annualized rent. After giving
effect to abatements, free rent and other straight-line adjustments,
our annualized effective rent as of December 31, 2014 was $336.5
million. Our annualized effective rent was greater than our
annualized rent as of December 31, 2014 because our positive
straight-line and other adjustments and amortization of deferred
revenue exceeded our negative straight-line adjustments due to
factors such as the timing of contractual rent escalations and
customer prepayments for services.
|
(d)
|
Represents the final monthly contractual rent under existing
customer leases that had commenced as of December 31, 2014,
multiplied by 12.
|
|
|
CyrusOne Inc.
Dividend and AFFO per Share Growth
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
Dividend per share (quarterly)
|
|
$
|
0.160
|
|
|
$
|
0.210
|
|
|
$
|
0.315
|
|
Dividend per share (annualized)
|
|
$
|
0.640
|
|
|
$
|
0.840
|
|
|
$
|
1.260
|
|
% Increase
|
|
-
|
|
|
31
|
%
|
|
50
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
2014
|
|
|
|
|
AFFO per share
|
|
$
|
1.12
|
|
|
$
|
1.71
|
|
|
|
|
% Increase
|
|
-
|
|
|
53
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO payout ratio
|
|
57
|
%
|
|
49
|
%
|
|
|
|
[ Back To TMCnet.com's Homepage ]
|