[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:

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.

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.