[November 04, 2014] |
|
CyrusOne Reports Third Quarter 2014 Earnings
DALLAS --(Business Wire)--
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 third quarter 2014 earnings.
Highlights
-
Third quarter Normalized FFO of $28.9 million and AFFO of $29.1 million
increased 32% and 51%, respectively, over the third quarter of
2013
-
Third quarter revenue of $84.8 million increased 26% over the third
quarter of 2013
-
Third quarter Adjusted EBITDA of $42.2 million increased 16% over the
third quarter of 2013
-
Leased 33,000 colocation square feet in the third quarter, with
utilization remaining high at 88%, and subsequent to the end of the
quarter signed lease in Northern Virginia for more than 12,000
colocation square feet
-
Completed initial phase of Phoenix 2 facility in record time of 107
days, in what is believed to be the fastest data center construction
project built from the ground up in the United States
"The continued strong financial performance reflects the success of the
platform we are building, and we are well positioned for growth in 2015
with the expansion of our customer base this year and the development of
our properties," said Gary Wojtaszek, president and chief executive
officer of CyrusOne. "We are excited to announce the lease in Northern
Virginia, and this deal is representative of our track record of success
in securing Fortune 1000 customers with a value proposition that has
broad appeal."
Third Quarter 2014 Financial Results
Revenue was $84.8 million for the third quarter, compared to $67.5
million for the same period in 2013, an increase of 26%. Operating
income of $9.6 million improved $1.1 million from the third quarter of
2013, as a $17.3 million increase in revenue and the impact of $1.4
million in restructuring charges and transaction costs in the third
quarter of 2013 were partially offset by increases in property operating
expenses of $8.8 million, depreciation and amortization of $6.1 million,
and sales, general and administrative expenses of $2.7 million. Net
income was $0.2 million for the third quarter, compared to a net loss of
$2.2 million for the same period in 2013.
Net operating income (NOI)1 was $51.8 million for the third
quarter, compared to $43.3 million in the same period in 2013, an
increase of 20%. 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 $42.2 million for the third quarter, compared to $36.5 million in
the same period in 2013, an increase of 16%. The Adjusted EBITDA margin
of 49.8% in the third quarter declined from 54.1% 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 $28.9
million for the third quarter, compared to $21.9 million in the same
period in 2013, an increase of 32%. The increase in Normalized FFO was
primarily due to growth in Adjusted EBITDA. Normalized FFO per diluted
common share or common share equivalent4 was $0.44 in the
third quarter of 2014. Adjusted Funds From Operations (AFFO)5
was $29.1 million for the third quarter, compared to $19.3 million in
the same period in 2013, an increase of 51%.
Leasing Activity
CyrusOne leased approximately 33,000 colocation square feet (CSF), or
3.4 MW of power, in the third quarter. Leases signed in the third
quarter represent approximately $0.7 million in monthly recurring rent,
or approximately $8 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 $10 million of annualized GAAP revenue once the customer
has fully ramped in. The Company added two new Fortune 10007
customers in the third quarter, bringing the total to 141 customers in
the Fortune 1000 and 656 customers in total as of September 30, 2014.
The weighted average lease term of the new leases based on square
footage was 79 months, and approximately 70% of the CSF was leased to
metered customers with the remainder leased on a full service basis.
Recurring rent churn8 for the third quarter of 2014 was 2.9%,
compared to 1.0% for the third quarter of 2013.
Portfolio Utilization and Development
As of September 30, 2014, CyrusOne had approximately 1,200,000 CSF
across 25 facilities, an increase of approximately 208,000, or 21%, from
a year ago. CSF utilization9 for the third quarter was 88%,
compared to 85% in the same period in 2013. Construction continues on
new facilities in Houston, San Antonio, and Northern Virginia. The first
phase of construction for the facilities is expected to be completed by
the end of 2014 or early 2015, adding a total of approximately 582,000
NRSF, including 60,000 CSF. Additionally, in October 2014 the company
completed construction on its Phoenix 2 facility, adding approximately
107,000 NRSF, including 30,000 pre-leased CSF. The Company completed the
project in 107 days, in what is believed to be the fastest data center
construction project built from the ground up in the United States.
CyrusOne also expects to complete construction of 21,000 square feet of
office space at its Carrollton facility in Dallas in the fourth quarter.
Balance Sheet and Liquidity
As of September 30, 2014, the Company had $555.0 million of long term
debt, cash of $30.4 million, and $195.0 million available under its
senior secured revolving credit facility. Net debt10 was
$538.8 million as of September 30, 2014, approximately 26% of the
Company's total enterprise value or 3.2x Adjusted EBITDA for the last
quarter annualized. Available liquidity11 was $225.4 million
as of September 30, 2014.
In October 2014, the Company's operating partnership, CyrusOne LP,
closed a new $450 million senior unsecured revolving credit facility and
a $150 million senior unsecured term loan. The revolving credit facility
replaces the Company's $225 million secured credit facility which
previously bore interest at a rate of LIBOR + 3.25%.The new revolving
credit facility will initially bear interest at a rate of LIBOR + 1.70%.
The revolving facility is scheduled to mature in October 2018 and
includes a one-year extension option, which if exercised by the Company
would extend the termination date to October 2019. The term loan will
initially bear interest at a rate of LIBOR + 1.65% and is scheduled to
mature in October 2019. The term loan may be drawn in up to three draws
(including the drawing on the closing date) within six months of the
closing date. The Company drew $75 million of the term loan at closing.
The facilities contain an accordion feature that allows the Company to
increase the aggregate commitment by up to $300 million.
Dividend
On August 6, 2014, the Company announced a dividend of $0.21 per share
of common stock and common stock equivalent for the third quarter of
2014. The dividend was paid on October 15, 2014, to stockholders of
record at the close of business on September 26, 2014.
Additionally, today the Company is announcing a dividend of $0.21 per
share of common stock and common stock equivalent for the fourth quarter
of 2014. The dividend will be paid on January 9, 2015, to stockholders
of record at the close of business on December 26, 2014.
Guidance
CyrusOne is increasing its guidance for full year 2014 Normalized FFO
per diluted common share or common share equivalent. The Company is
reaffirming its guidance for Revenue, Adjusted EBITDA, and Capital
Expenditures.
|
|
|
|
Category
|
|
Prior Guidance
|
|
Revised Guidance
|
|
|
|
|
Revenue
|
|
$325 - $330 million
|
|
$325 - $330 million
|
|
|
|
|
Adjusted EBITDA
|
|
$165 - $170 million
|
|
$165 - $170 million
|
|
|
|
|
Normalized FFO per diluted common share or common share equivalent
|
|
$1.58 - $1.63
|
|
$1.64 - $1.68
|
|
|
|
|
Capital Expenditures
|
|
|
|
|
|
|
|
|
Development*
|
|
$275 - $300 million
|
|
$275 - $300 million
|
|
|
|
|
Recurring
|
|
$5 - $10 million
|
|
$5 - $10 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
-
NAREIT's REITWorld 2014 on November 5-7 in Atlanta, Georgia
-
2014 RBC Capital Markets' Technology, Internet, Media and
Telecommunications Conference on November 10-11 in New York City
Conference Call Details
CyrusOne will host a conference call on November 4, 2014, at 12:00 PM
Eastern Time (11:00 AM Central Time) to discuss its results for the
third 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 November
4, 2014, until 9:00 AM Eastern Time (8:00 AM Central Time) on November
12, 2014. 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 10052801.
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 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.
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 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 65,256,860 for the third 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.
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.
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 annualized 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 655 customers,
including nine of the Fortune 20 and 141 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 September 30,
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
|
|
|
Change
|
|
Change
|
|
|
2014
|
|
2013
|
|
$
|
|
%
|
|
2014
|
|
2013
|
|
$
|
|
%
|
Revenue
|
|
$
|
84.8
|
|
|
$
|
67.5
|
|
|
$
|
17.3
|
|
|
26
|
%
|
|
$
|
244.0
|
|
|
$
|
191.2
|
|
|
$
|
52.8
|
|
|
28
|
%
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses
|
|
33.0
|
|
|
24.2
|
|
|
8.8
|
|
|
36
|
%
|
|
92.5
|
|
|
68.9
|
|
|
23.6
|
|
|
34
|
%
|
Sales and marketing
|
|
3.2
|
|
|
2.3
|
|
|
0.9
|
|
|
39
|
%
|
|
9.7
|
|
|
8.0
|
|
|
1.7
|
|
|
21
|
%
|
General and administrative
|
|
9.0
|
|
|
7.2
|
|
|
1.8
|
|
|
25
|
%
|
|
24.7
|
|
|
21.2
|
|
|
3.5
|
|
|
17
|
%
|
Depreciation and amortization
|
|
30.0
|
|
|
23.9
|
|
|
6.1
|
|
|
26
|
%
|
|
87.4
|
|
|
68.6
|
|
|
18.8
|
|
|
27
|
%
|
Restructuring charges
|
|
-
|
|
|
0.7
|
|
|
(0.7
|
)
|
|
(100
|
)%
|
|
-
|
|
|
0.7
|
|
|
(0.7
|
)
|
|
(100
|
)%
|
Transaction costs
|
|
-
|
|
|
0.7
|
|
|
(0.7
|
)
|
|
(100
|
)%
|
|
0.9
|
|
|
1.2
|
|
|
(0.3
|
)
|
|
(25
|
)%
|
Transaction-related compensation
|
|
-
|
|
|
-
|
|
|
-
|
|
|
n/m
|
|
|
-
|
|
|
20.0
|
|
|
(20.0
|
)
|
|
n/m
|
|
Total costs and expenses
|
|
75.2
|
|
|
59.0
|
|
|
16.2
|
|
|
27
|
%
|
|
215.2
|
|
|
188.6
|
|
|
26.6
|
|
|
14
|
%
|
Operating income
|
|
9.6
|
|
|
8.5
|
|
|
1.1
|
|
|
13
|
%
|
|
28.8
|
|
|
2.6
|
|
|
26.2
|
|
|
n/m
|
|
Interest expense
|
|
9.0
|
|
|
10.5
|
|
|
(1.5
|
)
|
|
(14
|
)%
|
|
30.4
|
|
|
32.2
|
|
|
(1.8
|
)
|
|
(6
|
)%
|
Other income
|
|
-
|
|
|
(0.1
|
)
|
|
0.1
|
|
|
(100
|
)%
|
|
-
|
|
|
(0.1
|
)
|
|
0.1
|
|
|
(100
|
)%
|
Loss on extinguishment of debt
|
|
-
|
|
|
-
|
|
|
-
|
|
|
n/m
|
|
|
-
|
|
|
1.3
|
|
|
(1.3
|
)
|
|
(100
|
)%
|
Income (loss) before income taxes
|
|
0.6
|
|
|
(1.9
|
)
|
|
2.5
|
|
|
(132
|
)%
|
|
(1.6
|
)
|
|
(30.8
|
)
|
|
29.2
|
|
|
(95
|
)%
|
Income tax expense
|
|
(0.4
|
)
|
|
(0.3
|
)
|
|
(0.1
|
)
|
|
33
|
%
|
|
(1.1
|
)
|
|
(1.2
|
)
|
|
0.1
|
|
|
(8
|
)%
|
Net income (loss)
|
|
0.2
|
|
|
(2.2
|
)
|
|
2.4
|
|
|
(109
|
)%
|
|
(2.7
|
)
|
|
(32.0
|
)
|
|
29.3
|
|
|
(92
|
)%
|
Net loss attributed to Predecessor
|
|
-
|
|
|
-
|
|
|
-
|
|
|
n/m
|
|
|
-
|
|
|
(20.2
|
)
|
|
20.2
|
|
|
n/m
|
|
Noncontrolling interest in net income (loss)
|
|
0.1
|
|
|
(1.4
|
)
|
|
1.5
|
|
|
(107
|
)%
|
|
(1.9
|
)
|
|
(7.8
|
)
|
|
5.9
|
|
|
(76
|
)%
|
Net income (loss) attributed to common stockholders
|
|
$
|
0.1
|
|
|
$
|
(0.8
|
)
|
|
$
|
0.9
|
|
|
(113
|
)%
|
|
$
|
(0.8
|
)
|
|
$
|
(4.0
|
)
|
|
$
|
3.2
|
|
|
(80
|
)%
|
Loss per common share - basic and diluted
|
|
$
|
-
|
|
|
$
|
(0.05
|
)
|
|
|
|
|
|
|
|
$
|
(0.06
|
)
|
|
$
|
(0.22
|
)
|
|
|
|
|
|
|
|
CyrusOne Inc.
|
Condensed Consolidated Balance Sheets
|
(Dollars in millions)
|
(Unaudited)
|
|
|
|
September 30,
|
|
December 31,
|
|
Change
|
|
|
2014
|
|
2013
|
|
$
|
|
%
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
Land
|
|
$
|
89.7
|
|
|
$
|
89.3
|
|
|
$
|
0.4
|
|
|
-
|
%
|
Buildings and improvements
|
|
796.6
|
|
|
783.7
|
|
|
12.9
|
|
|
2
|
%
|
Equipment
|
|
312.5
|
|
|
190.2
|
|
|
122.3
|
|
|
64
|
%
|
Construction in progress
|
|
120.9
|
|
|
57.3
|
|
|
63.6
|
|
|
111
|
%
|
Subtotal
|
|
1,319.7
|
|
|
1,120.5
|
|
|
199.2
|
|
|
18
|
%
|
Accumulated depreciation
|
|
(303.5
|
)
|
|
(236.7
|
)
|
|
(66.8
|
)
|
|
28
|
%
|
Net investment in real estate
|
|
1,016.2
|
|
|
883.8
|
|
|
132.4
|
|
|
15
|
%
|
Cash and cash equivalents
|
|
30.4
|
|
|
148.8
|
|
|
(118.4
|
)
|
|
(80
|
)%
|
Rent and other receivables
|
|
59.1
|
|
|
41.2
|
|
|
17.9
|
|
|
43
|
%
|
Goodwill
|
|
276.2
|
|
|
276.2
|
|
|
-
|
|
|
-
|
%
|
Intangible assets, net
|
|
73.2
|
|
|
85.9
|
|
|
(12.7
|
)
|
|
(15
|
)%
|
Due from affiliates
|
|
1.3
|
|
|
0.6
|
|
|
0.7
|
|
|
117
|
%
|
Other assets
|
|
81.6
|
|
|
70.3
|
|
|
11.3
|
|
|
16
|
%
|
Total assets
|
|
$
|
1,538.0
|
|
|
$
|
1,506.8
|
|
|
$
|
31.2
|
|
|
2
|
%
|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
$
|
100.2
|
|
|
$
|
66.8
|
|
|
$
|
33.4
|
|
|
50
|
%
|
Deferred revenue
|
|
66.1
|
|
|
55.9
|
|
|
10.2
|
|
|
18
|
%
|
Due to affiliates
|
|
7.4
|
|
|
8.5
|
|
|
(1.1
|
)
|
|
(13
|
)%
|
Capital lease obligations
|
|
14.2
|
|
|
16.7
|
|
|
(2.5
|
)
|
|
(15
|
)%
|
Long-term debt
|
|
555.0
|
|
|
525.0
|
|
|
30.0
|
|
|
6
|
%
|
Other financing arrangements
|
|
55.1
|
|
|
56.3
|
|
|
(1.2
|
)
|
|
(2
|
)%
|
Total liabilities
|
|
798.0
|
|
|
729.2
|
|
|
68.8
|
|
|
9
|
%
|
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
38,653,771 and 21,991,669 shares issued and outstanding at
September 30, 2014 and December 31, 2013, respectively
|
|
0.4
|
|
|
0.2
|
|
|
0.2
|
|
|
100
|
%
|
Paid in capital
|
|
513.7
|
|
|
340.7
|
|
|
173.0
|
|
|
51
|
%
|
Accumulated deficit
|
|
(40.8
|
)
|
|
(18.9
|
)
|
|
(21.9
|
)
|
|
116
|
%
|
Total shareholders' equity
|
|
473.3
|
|
|
322.0
|
|
|
151.3
|
|
|
47
|
%
|
Noncontrolling interest
|
|
266.7
|
|
|
455.6
|
|
|
(188.9
|
)
|
|
(41
|
)%
|
Total equity
|
|
740.0
|
|
|
777.6
|
|
|
(37.6
|
)
|
|
(5
|
)%
|
Total liabilities and shareholders' equity
|
|
$
|
1,538.0
|
|
|
$
|
1,506.8
|
|
|
$
|
31.2
|
|
|
2
|
%
|
|
CyrusOne Inc.
|
Condensed Consolidated and Combined Statements of Operations
|
(Dollars in millions, except per share amounts)
|
(Unaudited)
|
|
For the three months ended:
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
Revenue
|
|
$
|
84.8
|
|
|
$
|
81.7
|
|
|
$
|
77.5
|
|
|
$
|
72.3
|
|
|
$
|
67.5
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses
|
|
33.0
|
|
|
31.8
|
|
|
27.7
|
|
|
24.3
|
|
|
24.2
|
|
Sales and marketing
|
|
3.2
|
|
|
3.5
|
|
|
3.0
|
|
|
2.6
|
|
|
2.3
|
|
General and administrative
|
|
9.0
|
|
|
8.4
|
|
|
7.3
|
|
|
6.8
|
|
|
7.2
|
|
Depreciation and amortization
|
|
30.0
|
|
|
29.8
|
|
|
27.6
|
|
|
26.6
|
|
|
23.9
|
|
Restructuring charges
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.7
|
|
Transaction costs
|
|
-
|
|
|
0.8
|
|
|
0.1
|
|
|
0.2
|
|
|
0.7
|
|
Asset impairments
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2.8
|
|
|
-
|
|
Total costs and expenses
|
|
75.2
|
|
|
74.3
|
|
|
65.7
|
|
|
63.3
|
|
|
59.0
|
|
Operating income
|
|
9.6
|
|
|
$
|
7.4
|
|
|
$
|
11.8
|
|
|
9.0
|
|
|
8.5
|
|
Interest expense
|
|
9.0
|
|
|
10.7
|
|
|
10.7
|
|
|
11.5
|
|
|
10.5
|
|
Other income
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(0.1
|
)
|
Loss on extinguishment of debt
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Income (loss) before income taxes
|
|
0.6
|
|
|
(3.3
|
)
|
|
1.1
|
|
|
(2.5
|
)
|
|
(1.9
|
)
|
Income tax expense
|
|
(0.4
|
)
|
|
(0.3
|
)
|
|
(0.4
|
)
|
|
(1.1
|
)
|
|
(0.3
|
)
|
Gain on sale of real estate improvements
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(0.2
|
)
|
|
-
|
|
Net income (loss) from continuing operations
|
|
0.2
|
|
|
(3.6
|
)
|
|
0.7
|
|
|
(3.8
|
)
|
|
(2.2
|
)
|
Noncontrolling interest in net income (loss)
|
|
0.1
|
|
|
(2.5
|
)
|
|
0.5
|
|
|
(2.5
|
)
|
|
(1.4
|
)
|
Net income (loss) attributed to common stockholders
|
|
$
|
0.1
|
|
|
$
|
(1.1
|
)
|
|
$
|
0.2
|
|
|
$
|
(1.3
|
)
|
|
$
|
(0.8
|
)
|
Loss per common share - basic and diluted
|
|
$
|
-
|
|
|
$
|
(0.06
|
)
|
|
$
|
-
|
|
|
$
|
(0.06
|
)
|
|
$
|
(0.05
|
)
|
|
CyrusOne Inc.
|
Condensed Consolidated Balance Sheets
|
(Dollars in millions)
|
(Unaudited)
|
|
|
|
September 30, 2014
|
|
June 30, 2014
|
|
March 31, 2014
|
|
December 31, 2013
|
|
September 30, 2013
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land
|
|
$
|
89.7
|
|
|
$
|
89.7
|
|
|
$
|
89.6
|
|
|
$
|
89.3
|
|
|
$
|
81.5
|
|
Buildings and improvements
|
|
796.6
|
|
|
791.7
|
|
|
787.0
|
|
|
783.7
|
|
|
778.2
|
|
Equipment
|
|
312.5
|
|
|
298.8
|
|
|
206.4
|
|
|
190.2
|
|
|
134.3
|
|
Construction in progress
|
|
120.9
|
|
|
59.5
|
|
|
99.4
|
|
|
57.3
|
|
|
63.2
|
|
Subtotal
|
|
1,319.7
|
|
|
1,239.7
|
|
|
1,182.4
|
|
|
1,120.5
|
|
|
1,057.2
|
|
Accumulated depreciation
|
|
(303.5
|
)
|
|
(280.6
|
)
|
|
(257.6
|
)
|
|
(236.7
|
)
|
|
(218.6
|
)
|
Net investment in real estate
|
|
1,016.2
|
|
|
959.1
|
|
|
924.8
|
|
|
883.8
|
|
|
838.6
|
|
Cash and cash equivalents
|
|
30.4
|
|
|
49.3
|
|
|
125.2
|
|
|
148.8
|
|
|
213.2
|
|
Rent and other receivables
|
|
59.1
|
|
|
61.5
|
|
|
42.4
|
|
|
41.2
|
|
|
33.9
|
|
Goodwill
|
|
276.2
|
|
|
276.2
|
|
|
276.2
|
|
|
276.2
|
|
|
276.2
|
|
Intangible assets, net
|
|
73.2
|
|
|
77.4
|
|
|
81.7
|
|
|
85.9
|
|
|
89.9
|
|
Due from affiliates
|
|
1.3
|
|
|
0.5
|
|
|
0.9
|
|
|
0.6
|
|
|
0.9
|
|
Other assets
|
|
81.6
|
|
|
82.1
|
|
|
76.9
|
|
|
70.3
|
|
|
67.2
|
|
Total assets
|
|
$
|
1,538.0
|
|
|
$
|
1,506.1
|
|
|
$
|
1,528.1
|
|
|
$
|
1,506.8
|
|
|
$
|
1,519.9
|
|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
$
|
100.2
|
|
|
$
|
83.9
|
|
|
$
|
88.8
|
|
|
$
|
66.8
|
|
|
$
|
67.8
|
|
Deferred revenue
|
|
66.1
|
|
|
66.7
|
|
|
64.8
|
|
|
55.9
|
|
|
55.1
|
|
Due to affiliates
|
|
7.4
|
|
|
7.4
|
|
|
10.8
|
|
|
8.5
|
|
|
7.0
|
|
Capital lease obligations
|
|
14.2
|
|
|
15.0
|
|
|
15.5
|
|
|
16.7
|
|
|
18.8
|
|
Long-term debt
|
|
555.0
|
|
|
525.0
|
|
|
525.0
|
|
|
525.0
|
|
|
525.0
|
|
Other financing arrangements
|
|
55.1
|
|
|
57.1
|
|
|
56.4
|
|
|
56.3
|
|
|
55.8
|
|
Total liabilities
|
|
798.0
|
|
|
755.1
|
|
|
761.3
|
|
|
729.2
|
|
|
729.5
|
|
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
|
|
0.4
|
|
|
0.4
|
|
|
0.2
|
|
|
0.2
|
|
|
0.2
|
|
Paid in capital
|
|
513.7
|
|
|
511.1
|
|
|
342.9
|
|
|
340.7
|
|
|
339.4
|
|
Accumulated deficit
|
|
(40.8
|
)
|
|
(32.7
|
)
|
|
(23.5
|
)
|
|
(18.9
|
)
|
|
(14.2
|
)
|
Partnership capital
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Total shareholders' equity
|
|
473.3
|
|
|
478.8
|
|
|
319.6
|
|
|
322.0
|
|
|
325.4
|
|
Noncontrolling interests
|
|
266.7
|
|
|
272.2
|
|
|
447.2
|
|
|
455.6
|
|
|
465.0
|
|
Total shareholders' equity
|
|
740.0
|
|
|
$
|
751.0
|
|
|
$
|
766.8
|
|
|
777.6
|
|
|
790.4
|
|
Total liabilities and shareholders' equity
|
|
$
|
1,538.0
|
|
|
$
|
1,506.1
|
|
|
$
|
1,528.1
|
|
|
$
|
1,506.8
|
|
|
$
|
1,519.9
|
|
|
CyrusOne Inc.
|
Condensed Consolidated Statement of Cash Flow
|
(Dollars in millions)
|
(Unaudited)
|
|
|
|
Three Months Ended September 30, 2014
|
|
Three Months Ended September 30, 2013
|
|
Nine Months Ended September 30, 2014
|
|
Nine Months Ended September 30, 2013
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
0.2
|
|
|
$
|
(2.2
|
)
|
|
$
|
(2.7
|
)
|
|
$
|
(32.0
|
)
|
Adjustments to reconcile net income (loss) to net cash provided
by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
30.0
|
|
|
23.9
|
|
|
87.4
|
|
|
68.6
|
|
Noncash interest expense
|
|
0.9
|
|
|
0.2
|
|
|
2.7
|
|
|
1.3
|
|
Stock-based compensation expense
|
|
2.6
|
|
|
1.9
|
|
|
7.6
|
|
|
5.1
|
|
Provision for bad debt write off
|
|
0.3
|
|
|
0.3
|
|
|
0.9
|
|
|
0.3
|
|
Deferred income tax expense, including valuation allowance charge
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.3
|
|
Loss on extinguishment of debt
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1.3
|
|
Change in operating assets and liabilities, net of effect of
acquisitions:
|
|
|
|
|
|
|
|
|
|
|
|
|
Rent receivables and other assets
|
|
0.1
|
|
|
(10.9
|
)
|
|
(31.3
|
)
|
|
(10.5
|
)
|
Accounts payable and accrued expenses
|
|
11.6
|
|
|
7.8
|
|
|
14.1
|
|
|
9.2
|
|
Deferred revenues
|
|
(0.6
|
)
|
|
2.3
|
|
|
10.2
|
|
|
2.3
|
|
Due to affiliates
|
|
(0.8
|
)
|
|
-
|
|
|
(0.6
|
)
|
|
18.2
|
|
Other
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.7
|
|
Net cash provided by operating activities
|
|
44.3
|
|
|
23.3
|
|
|
88.3
|
|
|
64.8
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures - acquisitions of real estate
|
|
-
|
|
|
(6.7
|
)
|
|
-
|
|
|
(33.3
|
)
|
Capital expenditures - other development
|
|
(78.1
|
)
|
|
(57.6
|
)
|
|
(194.9
|
)
|
|
(132.3
|
)
|
Release of restricted cash
|
|
-
|
|
|
-
|
|
|
-
|
|
|
6.3
|
|
Net cash used in investing activities
|
|
(78.1
|
)
|
|
(64.3
|
)
|
|
(194.9
|
)
|
|
(159.3
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stock
|
|
-
|
|
|
-
|
|
|
355.9
|
|
|
360.5
|
|
Stock issuance costs
|
|
(0.8
|
)
|
|
-
|
|
|
(1.3
|
)
|
|
-
|
|
IPO costs
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(23.4
|
)
|
Acquisition of operating partnership units
|
|
-
|
|
|
-
|
|
|
(355.9
|
)
|
|
-
|
|
Dividends paid
|
|
(13.4
|
)
|
|
(10.4
|
)
|
|
(37.4
|
)
|
|
(20.7
|
)
|
Borrowings from revolving credit agreement
|
|
30.0
|
|
|
-
|
|
|
30.0
|
|
|
-
|
|
Payments on capital leases and other financing arrangements
|
|
(0.9
|
)
|
|
(1.2
|
)
|
|
(3.1
|
)
|
|
(4.3
|
)
|
Payments to buyout capital leases
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(9.6
|
)
|
Payment to buyout other financing arrangements
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(10.2
|
)
|
Contributions from parent, net
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.2
|
|
Debt issuance costs
|
|
-
|
|
|
(1.3
|
)
|
|
-
|
|
|
(1.3
|
)
|
Net cash (used in) provided by financing activities
|
|
14.9
|
|
|
(12.9
|
)
|
|
(11.8
|
)
|
|
291.2
|
|
Net (decrease) increase in cash and cash equivalents
|
|
(18.9
|
)
|
|
(53.9
|
)
|
|
(118.4
|
)
|
|
196.7
|
|
Cash and cash equivalents at beginning of period
|
|
49.3
|
|
|
279.4
|
|
|
148.8
|
|
|
28.8
|
|
Cash and cash equivalents at end of period
|
|
$
|
30.4
|
|
|
$
|
225.5
|
|
|
$
|
30.4
|
|
|
$
|
225.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2014
|
|
Three Months Ended September 30, 2013
|
|
Nine Months Ended September 30, 2014
|
|
Nine Months Ended September 30, 2013
|
Supplemental disclosures
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for interest, net of amount capitalized
|
|
$
|
1.9
|
|
|
$
|
1.9
|
|
|
$
|
22.4
|
|
|
$
|
22.1
|
|
Cash paid for income taxes
|
|
-
|
|
|
-
|
|
|
0.4
|
|
|
-
|
|
Capitalized interest
|
|
2.1
|
|
|
0.5
|
|
|
3.0
|
|
|
1.6
|
|
Acquisition of property in accounts payable and other liabilities
|
|
5.1
|
|
|
0.6
|
|
|
50.1
|
|
|
45.9
|
|
Assumed liabilities in buyout of other financing obligation lease
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.2
|
|
Contribution receivable from Parent related to transaction-related
compensation
|
|
-
|
|
|
-
|
|
|
-
|
|
|
19.6
|
|
Dividends payable
|
|
14.1
|
|
|
10.4
|
|
|
14.1
|
|
|
10.4
|
|
Deferred IPO costs
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1.7
|
|
Deferred IPO costs reclassified to additional paid in capital
|
|
-
|
|
|
-
|
|
|
-
|
|
|
9.5
|
|
|
CyrusOne Inc.
|
Net Operating Income and Reconciliation of Net Income (Loss) to
Adjusted EBITDA
|
(Dollars in millions)
|
(Unaudited)
|
|
|
|
Nine Months Ended
|
|
|
|
Three Months Ended
|
|
|
September 30,
|
|
Change
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
|
2014
|
|
2013
|
|
$
|
|
%
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
Net Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
244.0
|
|
|
$
|
191.2
|
|
|
$
|
52.8
|
|
|
28
|
%
|
|
$
|
84.8
|
|
|
$
|
81.7
|
|
|
$
|
77.5
|
|
|
$
|
72.3
|
|
|
$
|
67.5
|
|
Property operating expenses
|
|
92.5
|
|
|
68.9
|
|
|
23.6
|
|
|
34
|
%
|
|
33.0
|
|
|
31.8
|
|
|
27.7
|
|
|
24.3
|
|
|
24.2
|
|
Net Operating Income (NOI)
|
|
$
|
151.5
|
|
|
$
|
122.3
|
|
|
$
|
29.2
|
|
|
24
|
%
|
|
$
|
51.8
|
|
|
$
|
49.9
|
|
|
$
|
49.8
|
|
|
$
|
48.0
|
|
|
$
|
43.3
|
|
NOI as a % of Revenue
|
|
62.1
|
%
|
|
64.0
|
%
|
|
|
|
|
|
61.1
|
%
|
|
61.1
|
%
|
|
64.3
|
%
|
|
66.4
|
%
|
|
64.1
|
%
|
Reconciliation of Net (Loss) Income to Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
$
|
(2.7
|
)
|
|
$
|
(32.0
|
)
|
|
$
|
29.3
|
|
|
(92
|
)%
|
|
$
|
0.2
|
|
|
$
|
(3.6
|
)
|
|
$
|
0.7
|
|
|
$
|
(3.8
|
)
|
|
$
|
(2.2
|
)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
30.4
|
|
|
32.2
|
|
|
(1.8
|
)
|
|
(6
|
)%
|
|
9.0
|
|
|
10.7
|
|
|
10.7
|
|
|
11.5
|
|
|
10.5
|
|
Other income
|
|
-
|
|
|
(0.1
|
)
|
|
0.1
|
|
|
n/m
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(0.1
|
)
|
Income tax expense
|
|
1.1
|
|
|
1.2
|
|
|
(0.1
|
)
|
|
(8
|
)%
|
|
0.4
|
|
|
0.3
|
|
|
0.4
|
|
|
1.1
|
|
|
0.3
|
|
Depreciation and amortization
|
|
87.4
|
|
|
68.6
|
|
|
18.8
|
|
|
27
|
%
|
|
30.0
|
|
|
29.8
|
|
|
27.6
|
|
|
26.6
|
|
|
23.9
|
|
Restructuring charges
|
|
-
|
|
|
0.7
|
|
|
(0.7
|
)
|
|
n/m
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.7
|
|
Legal claim costs
|
|
-
|
|
|
0.7
|
|
|
(0.7
|
)
|
|
n/m
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.7
|
|
Transaction costs
|
|
0.9
|
|
|
1.2
|
|
|
(0.3
|
)
|
|
(25
|
)%
|
|
-
|
|
|
0.8
|
|
|
0.1
|
|
|
0.2
|
|
|
0.7
|
|
Stock-based compensation
|
|
7.6
|
|
|
5.0
|
|
|
2.6
|
|
|
52
|
%
|
|
2.6
|
|
|
2.8
|
|
|
2.2
|
|
|
1.3
|
|
|
2.0
|
|
Asset impairments
|
|
-
|
|
|
-
|
|
|
-
|
|
|
n/m
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2.8
|
|
|
-
|
|
Loss on extinguishment of debt
|
|
-
|
|
|
1.3
|
|
|
(1.3
|
)
|
|
n/m
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Gain on sale of real estate improvements
|
|
-
|
|
|
-
|
|
|
-
|
|
|
n/m
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.2
|
|
|
-
|
|
Transaction-related compensation
|
|
-
|
|
|
20.0
|
|
|
(20.0
|
)
|
|
n/m
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Adjusted EBITDA
|
|
$
|
124.7
|
|
|
$
|
98.8
|
|
|
$
|
25.9
|
|
|
26
|
%
|
|
$
|
42.2
|
|
|
$
|
40.8
|
|
|
$
|
41.7
|
|
|
$
|
39.9
|
|
|
$
|
36.5
|
|
Adjusted EBITDA as a % of Revenue
|
|
51.1
|
%
|
|
51.7
|
%
|
|
|
|
|
|
49.8
|
%
|
|
49.9
|
%
|
|
53.8
|
%
|
|
55.2
|
%
|
|
54.1
|
%
|
|
CyrusOne Inc.
|
Reconciliation of Net Income (Loss) to FFO, Normalized FFO, and
AFFO
|
(Dollars in millions)
|
(Unaudited)
|
|
|
|
Nine Months Ended
|
|
|
|
Three Months Ended
|
|
|
September 30,
|
|
Change
|
|
September 30, 2014
|
|
June 30, 2014
|
|
March 31, 2014
|
|
December 31, 2013
|
|
September 30, 2013
|
2014
|
|
2013
|
|
$
|
|
%
|
|
Reconciliation of Net (Loss) Income to FFO and Normalized FFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
$
|
(2.7
|
)
|
|
$
|
(32.0
|
)
|
|
$
|
29.3
|
|
|
(92
|
)%
|
|
$
|
0.2
|
|
|
$
|
(3.6
|
)
|
|
$
|
0.7
|
|
|
$
|
(3.8
|
)
|
|
$
|
(2.2
|
)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate depreciation and amortization
|
|
70.8
|
|
|
50.6
|
|
|
20.2
|
|
|
40
|
%
|
|
24.5
|
|
|
24.1
|
|
|
22.2
|
|
|
20.0
|
|
|
17.8
|
|
Amortization of customer relationship intangibles
|
|
12.7
|
|
|
12.6
|
|
|
0.1
|
|
|
1
|
%
|
|
4.2
|
|
|
4.3
|
|
|
4.2
|
|
|
4.2
|
|
|
4.2
|
|
Real estate impairments
|
|
-
|
|
|
-
|
|
|
-
|
|
|
n/m
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2.8
|
|
|
-
|
|
Gain on sale of real estate improvements
|
|
-
|
|
|
-
|
|
|
-
|
|
|
n/m
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.2
|
|
|
-
|
|
Funds from Operations (FFO)
|
|
$
|
80.8
|
|
|
$
|
31.2
|
|
|
49.6
|
|
|
n/m
|
|
|
$
|
28.9
|
|
|
$
|
24.8
|
|
|
$
|
27.1
|
|
|
$
|
23.4
|
|
|
$
|
19.8
|
|
Transaction-related compensation
|
|
-
|
|
|
20.0
|
|
|
(20.0
|
)
|
|
n/m
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Loss on extinguishment of debt
|
|
-
|
|
|
1.3
|
|
|
(1.3
|
)
|
|
n/m
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Restructuring charges
|
|
-
|
|
|
0.7
|
|
|
(0.7
|
)
|
|
n/m
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.7
|
|
Legal claim costs
|
|
-
|
|
|
0.7
|
|
|
(0.7
|
)
|
|
n/m
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.7
|
|
Transaction costs
|
|
0.9
|
|
|
1.2
|
|
|
(0.3
|
)
|
|
(25
|
)%
|
|
-
|
|
|
0.8
|
|
|
0.1
|
|
|
0.2
|
|
|
0.7
|
|
Normalized Funds from Operations (Normalized FFO)
|
|
$
|
81.7
|
|
|
$
|
55.1
|
|
|
$
|
26.6
|
|
|
48
|
%
|
|
$
|
28.9
|
|
|
$
|
25.6
|
|
|
$
|
27.2
|
|
|
$
|
23.6
|
|
|
$
|
21.9
|
|
Normalized FFO per diluted common share or common share equivalent
|
|
$
|
1.25
|
|
|
$
|
0.85
|
|
|
$
|
0.40
|
|
|
47
|
%
|
|
$
|
0.44
|
|
|
$
|
0.39
|
|
|
$
|
0.42
|
|
|
$
|
0.37
|
|
|
$
|
0.33
|
|
Weighted Average diluted common share and common share equivalent
outstanding
|
|
65.3
|
|
|
64.7
|
|
|
0.6
|
|
|
1
|
%
|
|
65.3
|
|
|
65.3
|
|
|
65.0
|
|
|
64.6
|
|
|
64.7
|
|
Reconciliation of Normalized FFO to AFFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized FFO
|
|
$
|
81.7
|
|
|
$
|
55.1
|
|
|
26.6
|
|
|
48
|
%
|
|
$
|
28.9
|
|
|
$
|
25.6
|
|
|
$
|
27.2
|
|
|
$
|
23.6
|
|
|
$
|
21.9
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of deferred financing costs
|
|
2.7
|
|
|
2.8
|
|
|
(0.1
|
)
|
|
(4
|
)%
|
|
0.9
|
|
|
0.9
|
|
|
0.9
|
|
|
1.3
|
|
|
0.5
|
|
Stock-based compensation
|
|
7.6
|
|
|
5.0
|
|
|
2.6
|
|
|
52
|
%
|
|
2.6
|
|
|
2.8
|
|
|
2.2
|
|
|
1.3
|
|
|
2.0
|
|
Non-real estate depreciation and amortization
|
|
3.8
|
|
|
5.4
|
|
|
(1.6
|
)
|
|
(30
|
)%
|
|
1.2
|
|
|
1.4
|
|
|
1.2
|
|
|
2.4
|
|
|
1.9
|
|
Deferred revenue and straight line rent adjustments
|
|
(8.2
|
)
|
|
(9.7
|
)
|
|
1.5
|
|
|
(15
|
)%
|
|
(1.5
|
)
|
|
(3.7
|
)
|
|
(3.0
|
)
|
|
(4.2
|
)
|
|
(3.7
|
)
|
Leasing commissions
|
|
(2.9
|
)
|
|
(5.1
|
)
|
|
2.2
|
|
|
(43
|
)%
|
|
(0.9
|
)
|
|
(1.4
|
)
|
|
(0.6
|
)
|
|
(1.7
|
)
|
|
(1.7
|
)
|
Recurring capital expenditures
|
|
(2.8
|
)
|
|
(2.3
|
)
|
|
(0.5
|
)
|
|
22
|
%
|
|
(2.1
|
)
|
|
(0.3
|
)
|
|
(0.4
|
)
|
|
(1.9
|
)
|
|
(1.6
|
)
|
Deferred income tax expense
|
|
-
|
|
|
0.4
|
|
|
(0.4
|
)
|
|
n/m
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Adjusted Funds from Operations (AFFO)
|
|
$
|
81.9
|
|
|
$
|
51.6
|
|
|
$
|
30.3
|
|
|
59
|
%
|
|
$
|
29.1
|
|
|
$
|
25.3
|
|
|
$
|
27.5
|
|
|
$
|
20.8
|
|
|
$
|
19.3
|
|
|
CyrusOne Inc.
|
Market Capitalization Summary and Reconciliation of Net Debt
|
(Unaudited)
|
|
Market Capitalization
|
|
|
|
Shares or Equivalents Outstanding
|
|
Market Price as of September 30, 2014
|
|
Market Value Equivalents (in millions)
|
Common shares
|
|
38,653,771
|
|
$
|
24.04
|
|
$
|
929.2
|
|
Operating Partnership units
|
|
26,601,835
|
|
$
|
24.04
|
|
639.5
|
|
Net Debt
|
|
|
|
|
|
538.8
|
|
Total Enterprise Value (TEV)
|
|
|
|
|
|
$
|
2,107.5
|
|
Net Debt as a % of TEV
|
|
|
|
|
|
25.6
|
%
|
Net Debt to LQA Adjusted EBITDA
|
|
|
|
|
|
3.2x
|
|
Reconciliation of Net Debt
|
|
(dollars in millions)
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
Long-term debt
|
|
$
|
555.0
|
|
|
$
|
525.0
|
|
|
$
|
525.0
|
|
|
$
|
525.0
|
|
Capital lease obligations
|
|
14.2
|
|
|
15.0
|
|
|
15.5
|
|
|
16.7
|
|
Less:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
(30.4
|
)
|
|
(49.3
|
)
|
|
(125.2
|
)
|
|
(148.8
|
)
|
Net Debt
|
|
$
|
538.8
|
|
|
$
|
490.7
|
|
|
$
|
415.3
|
|
|
$
|
392.9
|
|
|
CyrusOne Inc.
|
Colocation Square Footage (CSF) and Utilization
|
(Unaudited)
|
|
|
|
As of September 30, 2014
|
|
As of December 31, 2013
|
|
As of September 30, 2013
|
Market
|
|
Colocation Space (CSF)(a)
|
|
CSF Utilized(b)
|
|
Colocation Space (CSF)(a)
|
|
CSF Utilized(b)
|
|
Colocation Space (CSF)(a)
|
|
CSF Utilized(b)
|
Cincinnati
|
|
419,301
|
|
89
|
%
|
|
419,231
|
|
89
|
%
|
|
419,231
|
|
87
|
%
|
Dallas
|
|
294,873
|
|
85
|
%
|
|
231,598
|
|
80
|
%
|
|
171,780
|
|
93
|
%
|
Houston
|
|
268,094
|
|
89
|
%
|
|
230,718
|
|
91
|
%
|
|
230,718
|
|
85
|
%
|
Austin
|
|
59,995
|
|
76
|
%
|
|
54,003
|
|
69
|
%
|
|
54,003
|
|
63
|
%
|
Phoenix
|
|
77,528
|
|
99
|
%
|
|
36,654
|
|
67
|
%
|
|
36,366
|
|
64
|
%
|
San Antonio
|
|
43,843
|
|
100
|
%
|
|
43,487
|
|
100
|
%
|
|
43,487
|
|
99
|
%
|
Chicago
|
|
23,298
|
|
56
|
%
|
|
23,298
|
|
52
|
%
|
|
23,298
|
|
52
|
%
|
International
|
|
13,200
|
|
80
|
%
|
|
13,200
|
|
78
|
%
|
|
13,200
|
|
78
|
%
|
Total Footprint
|
|
1,200,132
|
|
88
|
%
|
|
1,052,189
|
|
85
|
%
|
|
992,083
|
|
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.
|
2014 Guidance
|
(Unaudited)
|
|
Category
|
|
Prior Guidance
|
|
Revised Guidance
|
Revenue
|
|
$325 - $330 million
|
|
$325 - $330 million
|
Adjusted EBITDA
|
|
$165 - $170 million
|
|
$165 - $170 million
|
Normalized FFO per diluted common share or common share equivalent
|
|
$1.58 - $1.63
|
|
$1.64 - $1.68
|
|
|
|
|
|
Capital Expenditures
|
|
|
|
|
Development*
|
|
$275 - $300 million
|
|
$275 - $300 million
|
Recurring
|
|
$5 - $10 million
|
|
$5 - $10 million
|
|
|
|
|
|
*
|
|
Development capital is inclusive of capital used for the acquisition
of land for future development.
|
|
CyrusOne Inc.
|
Data Center Portfolio
|
As of September 30, 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
|
|
$
|
52,937,485
|
|
112,133
|
|
97
|
%
|
|
97
|
%
|
|
10,563
|
|
98
|
%
|
|
37,063
|
|
159,759
|
|
3,000
|
|
28
|
S. State Highway 121 Business Lewisville, TX (Lewisville)*
|
|
Dallas
|
|
38,681,596
|
|
108,687
|
|
97
|
%
|
|
97
|
%
|
|
11,279
|
|
96
|
%
|
|
59,345
|
|
179,311
|
|
-
|
|
18
|
West Seventh St., Cincinnati, OH (7th Street)***
|
|
Cincinnati
|
|
34,904,962
|
|
211,742
|
|
91
|
%
|
|
91
|
%
|
|
5,744
|
|
100
|
%
|
|
171,561
|
|
389,047
|
|
37,000
|
|
13
|
Southwest Fwy., Houston, TX (Galleria)
|
|
Houston
|
|
31,849,249
|
|
63,469
|
|
93
|
%
|
|
93
|
%
|
|
17,259
|
|
69
|
%
|
|
23,203
|
|
103,931
|
|
-
|
|
14
|
W. Frankford, Carrollton, TX (Frankford)
|
|
Dallas
|
|
21,014,226
|
|
170,531
|
|
63
|
%
|
|
77
|
%
|
|
13,745
|
|
70
|
%
|
|
66,061
|
|
250,337
|
|
334,000
|
|
18
|
South Ellis Street Chandler, AZ (Phoenix 1)
|
|
Phoenix
|
|
20,981,256
|
|
77,528
|
|
99
|
%
|
|
99
|
%
|
|
34,471
|
|
10
|
%
|
|
38,441
|
|
150,440
|
|
31,000
|
|
27
|
Kingsview Dr., Lebanon, OH (Lebanon)
|
|
Cincinnati
|
|
20,445,053
|
|
65,303
|
|
81
|
%
|
|
83
|
%
|
|
44,886
|
|
72
|
%
|
|
52,950
|
|
163,139
|
|
65,000
|
|
14
|
Westover Hills Blvd, San Antonio, TX (San Antonio 1)
|
|
San Antonio
|
|
18,964,617
|
|
43,843
|
|
100
|
%
|
|
100
|
%
|
|
5,633
|
|
85
|
%
|
|
45,939
|
|
95,415
|
|
11,000
|
|
12
|
Industrial Rd., Florence, KY (Florence)
|
|
Cincinnati
|
|
14,911,594
|
|
52,698
|
|
100
|
%
|
|
100
|
%
|
|
46,848
|
|
87
|
%
|
|
40,374
|
|
139,920
|
|
-
|
|
9
|
Westway Park Blvd., Houston, TX (Houston West 2)
|
|
Houston
|
|
14,091,664
|
|
79,492
|
|
72
|
%
|
|
72
|
%
|
|
3,112
|
|
-
|
%
|
|
55,642
|
|
138,246
|
|
12,000
|
|
12
|
Knightsbridge Dr., Hamilton, OH (Hamilton)*
|
|
Cincinnati
|
|
9,454,719
|
|
46,565
|
|
75
|
%
|
|
75
|
%
|
|
1,077
|
|
100
|
%
|
|
35,336
|
|
82,978
|
|
-
|
|
10
|
Metropolis Dr., Austin, TX (Austin 2)
|
|
Austin
|
|
9,133,505
|
|
43,772
|
|
72
|
%
|
|
72
|
%
|
|
1,357
|
|
67
|
%
|
|
22,892
|
|
68,021
|
|
-
|
|
5
|
Parkway Dr., Mason, OH (Mason)
|
|
Cincinnati
|
|
5,870,151
|
|
34,072
|
|
100
|
%
|
|
100
|
%
|
|
26,458
|
|
98
|
%
|
|
17,193
|
|
77,723
|
|
-
|
|
4
|
E. Ben White Blvd., Austin, TX (Austin 1)*
|
|
Austin
|
|
5,573,555
|
|
16,223
|
|
87
|
%
|
|
87
|
%
|
|
21,376
|
|
100
|
%
|
|
7,516
|
|
45,115
|
|
-
|
|
2
|
Midway Rd., Carrollton, TX (Midway)**
|
|
Dallas
|
|
5,408,662
|
|
8,390
|
|
100
|
%
|
|
100
|
%
|
|
-
|
|
-
|
%
|
|
-
|
|
8,390
|
|
-
|
|
1
|
Kestral Way (London)**
|
|
London
|
|
3,591,360
|
|
10,000
|
|
99
|
%
|
|
99
|
%
|
|
-
|
|
-
|
%
|
|
-
|
|
10,000
|
|
-
|
|
1
|
Springer St., Lombard, IL (Lombard)
|
|
Chicago
|
|
2,363,030
|
|
13,516
|
|
70
|
%
|
|
70
|
%
|
|
4,115
|
|
100
|
%
|
|
12,230
|
|
29,861
|
|
29,000
|
|
3
|
Marsh Lane, Carrollton, TX (Marsh Ln)**
|
|
Dallas
|
|
2,238,345
|
|
4,245
|
|
100
|
%
|
|
100
|
%
|
|
-
|
|
-
|
%
|
|
-
|
|
4,245
|
|
-
|
|
1
|
Goldcoast Dr., Cincinnati, OH (Goldcoast)
|
|
Cincinnati
|
|
1,471,243
|
|
2,728
|
|
100
|
%
|
|
100
|
%
|
|
5,280
|
|
100
|
%
|
|
16,481
|
|
24,489
|
|
14,000
|
|
1
|
Bryan St., Dallas, TX (Bryan St)**
|
|
Dallas
|
|
983,133
|
|
3,020
|
|
51
|
%
|
|
51
|
%
|
|
-
|
|
-
|
%
|
|
-
|
|
3,020
|
|
-
|
|
1
|
E. Monroe St., South Bend, IN (Monroe St.)
|
|
South Bend
|
|
922,565
|
|
6,350
|
|
37
|
%
|
|
37
|
%
|
|
-
|
|
-
|
%
|
|
6,478
|
|
12,828
|
|
4,000
|
|
1
|
North Freeway, Houston, TX (Greenspoint)**
|
|
Houston
|
|
744,287
|
|
13,000
|
|
100
|
%
|
|
100
|
%
|
|
1,449
|
|
100
|
%
|
|
-
|
|
14,449
|
|
-
|
|
1
|
McAuley Place, Blue Ash, OH (Blue Ash)*
|
|
Cincinnati
|
|
532,002
|
|
6,193
|
|
39
|
%
|
|
39
|
%
|
|
6,950
|
|
100
|
%
|
|
2,166
|
|
15,309
|
|
-
|
|
1
|
Jurong East (Singapore)**
|
|
Singapore
|
|
334,213
|
|
3,200
|
|
19
|
%
|
|
19
|
%
|
|
-
|
|
-
|
%
|
|
-
|
|
3,200
|
|
-
|
|
1
|
Crescent Circle, South Bend, IN (Blackthorn)*
|
|
South Bend
|
|
319,790
|
|
3,432
|
|
38
|
%
|
|
38
|
%
|
|
-
|
|
-
|
%
|
|
5,125
|
|
8,557
|
|
11,000
|
|
1
|
Total
|
|
|
|
$
|
317,722,262
|
|
1,200,132
|
|
86
|
%
|
|
88
|
%
|
|
261,602
|
|
75
|
%
|
|
715,996
|
|
2,177,730
|
|
551,000
|
|
194
|
|
|
|
*
|
|
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 September 30, 2014, multiplied by 12. For the month of
September 2014, our total portfolio annualized rent was $317.7
million, customer reimbursements were $42.9 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 October 1, 2012 through September 30, 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 September 30, 2014 was
$326,011,822. Our annualized effective rent was greater than our
annualized rent as of September 30, 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 September 30, 2014 divided by total CSF.
Leases signed but not commenced as of September 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 September 30, 2014
divided by total Office & Other space. Leases signed but not
commenced as of September 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 September 30, 2014
|
(Dollars in millions)
|
(Unaudited)
|
|
|
|
|
|
NRSF Under Development(a)
|
|
|
|
Under Development Costs(b)
|
Facilities
|
|
Metropolitan 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 Road (Carrollton)
|
|
Dallas
|
|
-
|
|
21,000
|
|
2,000
|
|
-
|
|
23,000
|
|
-
|
|
$
|
2
|
|
$3-4
|
|
$5-6
|
Westover Hills Blvd. (San Antonio 2)
|
|
San Antonio
|
|
30,000
|
|
20,000
|
|
25,000
|
|
49,000
|
|
124,000
|
|
3.0
|
|
21
|
|
19-23
|
|
40-44
|
Westway Park Blvd. (Houston West 3)
|
|
Houston
|
|
-
|
|
-
|
|
-
|
|
329,000
|
|
329,000
|
|
-
|
|
15
|
|
17-21
|
|
32-35
|
South Ellis Street, Chandler, AZ (Phoenix 2)
|
|
Phoenix
|
|
30,000
|
|
8,000
|
|
18,000
|
|
51,000
|
|
107,000
|
|
6.0
|
|
15
|
|
28-35
|
|
44-50
|
Ridgetop Circle, Sterling, VA (Northern VA)
|
|
Loudon County
|
|
30,000
|
|
16,000
|
|
35,000
|
|
48,000
|
|
129,000
|
|
6.0
|
|
18
|
|
24-29
|
|
42-47
|
Total
|
|
|
|
90,000
|
|
65,000
|
|
80,000
|
|
477,000
|
|
712,000
|
|
15.0
|
|
$
|
71
|
|
$91.0-112.0
|
|
$163.0-182.0
|
|
|
|
(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 September 30, 2014. There
may be accruals above this amount for work completed, for which cash
has not yet been paid.
|
|
CyrusOne Inc.
|
Customer Diversification((a))
|
As of September 30, 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
|
|
$
|
22,102,774
|
|
7.0
|
%
|
|
29.3
|
2
|
|
Telecommunications (CBI) (e)
|
|
8
|
|
19,676,079
|
|
6.2
|
%
|
|
21.3
|
3
|
|
Information Technology
|
|
3
|
|
15,793,623
|
|
5.0
|
%
|
|
45.2
|
4
|
|
Information Technology
|
|
1
|
|
15,694,569
|
|
4.9
|
%
|
|
54.0
|
5
|
|
Telecommunication Services
|
|
2
|
|
14,449,470
|
|
4.5
|
%
|
|
40.6
|
6
|
|
Research and Consulting Services
|
|
3
|
|
14,082,587
|
|
4.4
|
%
|
|
20.0
|
7
|
|
Energy
|
|
5
|
|
13,575,586
|
|
4.3
|
%
|
|
5.8
|
8
|
|
Information Technology
|
|
2
|
|
8,308,753
|
|
2.6
|
%
|
|
33.1
|
9
|
|
Financials
|
|
1
|
|
6,000,225
|
|
1.9
|
%
|
|
68.0
|
10
|
|
Telecommunication Services
|
|
4
|
|
5,239,512
|
|
1.6
|
%
|
|
55.0
|
11
|
|
Consumer Staples
|
|
1
|
|
4,971,185
|
|
1.6
|
%
|
|
91.3
|
12
|
|
Energy
|
|
2
|
|
4,944,360
|
|
1.6
|
%
|
|
22.0
|
13
|
|
Energy
|
|
1
|
|
4,871,707
|
|
1.5
|
%
|
|
12.1
|
14
|
|
Information Technology
|
|
1
|
|
4,795,209
|
|
1.5
|
%
|
|
14.1
|
15
|
|
Information Technology
|
|
1
|
|
4,627,418
|
|
1.5
|
%
|
|
77.0
|
16
|
|
Information Technology
|
|
2
|
|
4,040,559
|
|
1.3
|
%
|
|
62.1
|
17
|
|
Energy
|
|
3
|
|
3,881,430
|
|
1.2
|
%
|
|
6.5
|
18
|
|
Energy
|
|
1
|
|
3,637,740
|
|
1.1
|
%
|
|
20.3
|
19
|
|
Energy
|
|
2
|
|
3,475,880
|
|
1.1
|
%
|
|
26.3
|
20
|
|
Consumer Discretionary
|
|
1
|
|
3,418,965
|
|
1.1
|
%
|
|
2.1
|
|
|
|
|
|
|
$
|
177,587,631
|
|
55.9
|
%
|
|
34.0
|
|
|
|
(a)
|
|
Includes affiliates.
|
(b)
|
|
Represents monthly contractual rent (defined as cash rent including
customer reimbursements for metered power) under existing customer
leases as of September 30, 2014, multiplied by 12. For the month of
September 2014, our total portfolio annualized rent was $317.7
million, and customer reimbursements were $42.9 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 October 1, 2012 through September 30, 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
September 30, 2014 was $326,011,822. Our annualized effective rent
was greater than our annualized rent as of September 30, 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 September 30, 2014, which was
approximately $317.7 million.
|
(d)
|
|
Weighted average based on customer's percentage of total annualized
rent expiring and is as of September 30, 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 2.3% of our annualized rent as of
September 30, 2014.
|
|
CyrusOne Inc.
|
Lease Distribution
|
As of September 30, 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
|
|
488
|
|
75
|
%
|
|
99,342
|
|
5
|
%
|
|
$
|
36,485,445
|
|
12
|
%
|
1,000-2,499
|
|
58
|
|
9
|
%
|
|
93,913
|
|
5
|
%
|
|
20,331,043
|
|
6
|
%
|
2,500-4,999
|
|
32
|
|
5
|
%
|
|
119,610
|
|
7
|
%
|
|
22,962,467
|
|
7
|
%
|
5,000-9,999
|
|
32
|
|
5
|
%
|
|
229,970
|
|
13
|
%
|
|
57,640,214
|
|
18
|
%
|
10,000+
|
|
38
|
|
6
|
%
|
|
1,281,708
|
|
70
|
%
|
|
180,303,093
|
|
57
|
%
|
Total
|
|
648
|
|
100
|
%
|
|
1,824,543
|
|
100
|
%
|
|
$
|
317,722,262
|
|
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 September 30, 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 September 30, 2014, multiplied by 12. For the month of
September 2014, customer reimbursements were $42.9 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 October 1, 2012 through September
30, 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 September 30, 2014
was $326,011,822. Our annualized effective rent was greater than our
annualized rent as of September 30, 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 September 30, 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
|
|
|
|
353,188
|
|
|
|
|
|
|
|
|
|
|
Month-to-Month
|
|
222
|
|
24,300
|
|
1
|
%
|
|
$
|
7,733,080
|
|
2
|
%
|
|
$
|
7,733,080
|
|
2
|
%
|
Remainder of 2014
|
|
356
|
|
138,458
|
|
8
|
%
|
|
40,118,406
|
|
13
|
%
|
|
40,205,393
|
|
12
|
%
|
2015
|
|
656
|
|
338,573
|
|
19
|
%
|
|
55,850,353
|
|
18
|
%
|
|
56,440,194
|
|
17
|
%
|
2016
|
|
521
|
|
244,794
|
|
13
|
%
|
|
57,565,257
|
|
18
|
%
|
|
57,728,673
|
|
17
|
%
|
2017
|
|
576
|
|
300,419
|
|
16
|
%
|
|
40,757,474
|
|
13
|
%
|
|
42,088,217
|
|
12
|
%
|
2018
|
|
202
|
|
210,354
|
|
12
|
%
|
|
45,749,213
|
|
14
|
%
|
|
50,800,499
|
|
15
|
%
|
2019
|
|
136
|
|
241,489
|
|
13
|
%
|
|
31,258,728
|
|
10
|
%
|
|
36,149,302
|
|
11
|
%
|
2020
|
|
66
|
|
159,638
|
|
9
|
%
|
|
15,607,294
|
|
5
|
%
|
|
19,401,405
|
|
6
|
%
|
2021
|
|
62
|
|
71,054
|
|
4
|
%
|
|
13,892,146
|
|
4
|
%
|
|
16,259,402
|
|
5
|
%
|
2022
|
|
3
|
|
30,921
|
|
2
|
%
|
|
3,493,758
|
|
1
|
%
|
|
3,804,610
|
|
1
|
%
|
2023 - Thereafter
|
|
36
|
|
64,542
|
|
3
|
%
|
|
5,696,553
|
|
2
|
%
|
|
8,381,426
|
|
2
|
%
|
Total
|
|
2,836
|
|
2,177,730
|
|
100
|
%
|
|
$
|
317,722,262
|
|
100
|
%
|
|
$
|
338,992,201
|
|
100
|
%
|
|
|
|
(a)
|
|
Leases that were auto-renewed prior to September 30, 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 September 30, 2014, multiplied by 12. For the month of
September 2014, our total portfolio annualized rent was $317.7
million, customer reimbursements were $42.9 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 October 1, 2012 through September 30, 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 September 30, 2014 was
$326,011,822. Our annualized effective rent was greater than our
annualized rent as of September 30, 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 September 30, 2014,
multiplied by 12.
|
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