[August 05, 2015] |
|
CyrusOne Reports Second Quarter 2015 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 second quarter 2015 earnings.
Highlights
-
Second quarter Normalized FFO of $33.4 million and AFFO of $36.5
million increased 30% and 44%, respectively, over the second quarter
of 2014
-
Second quarter Adjusted EBITDA of $47.1 million increased 15% over the
second quarter of 2014
-
Second quarter revenue of $89.1 million increased 9% over the second
quarter of 2014
-
Leased 48,000 colocation square feet totaling $13 million in
annualized GAAP revenue, with utilization increasing to 90%, including
98% at Northern Virginia facility brought online in the first quarter
and 100% in Phoenix
-
Added five Fortune 1000 companies as new customers, increasing the
total number of Fortune 1000 customers to 151 as of the end of the
quarter
-
Subsequent to the end of the quarter, announced the closing of the
acquisition of Cervalis
"Our results this quarter reflect continued strong financial and
operating performance, and the success we have had in attracting new
Fortune 1000 customers is a validation of our reputation for serving the
needs of large enterprises," said Gary Wojtaszek, president and chief
executive officer of CyrusOne. "Our revised guidance highlights the
continued strength of our core business as well as the immediate
accretion associated with the Cervalis acquisition."
Second Quarter 2015 Financial Results
Revenue was $89.1 million for the second quarter, compared to $81.7
million for the same period in 2014, an increase of 9%. Operating income
of $2.6 million decreased $4.8 million from the second quarter of 2014,
driven by an $8.8 million increase in transaction costs primarily
related to the Cervalis acquisition, as well as increases in
depreciation and amortization of $1.6 million, property operating
expenses of $1.0 million, and selling, general and administrative
expenses of $0.8 million, partially offset by a $7.4 million increase in
revenue. Net loss was $6.5 million for the second quarter, compared to
net loss of $3.6 million for the same period in 2014. The $2.9 million
increase in net loss was driven by the decrease in operating income,
partially offset by a $2.0 million reduction in interest expense.
Net operating income (NOI)1 was $56.3 million for the second
quarter, compared to $49.9 million in the same period in 2014, an
increase of 13%. 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 $47.1 million for the second quarter, compared to $40.8 million in
the same period in 2014, an increase of 15%. The Adjusted EBITDA margin
of 52.9% in the second quarter increased from 49.9% in the same period
in 2014.
Normalized Funds From Operations (Normalized FFO)3 was $33.4
million for the second quarter, compared to $25.6 million in the same
period in 2014, an increase of 30%. The increase in Normalized FFO was
driven by the growth in Adjusted EBITDA and the decrease in interest
expense, partially offset by a $0.3 million increase in stock-based
compensation. Normalized FFO per diluted common share or common share
equivalent4 was $0.51 in the second quarter of 2015. Adjusted
Funds From Operations (AFFO)5 was $36.5 million for the
second quarter, compared to $25.3 million in the same period in 2014, an
increase of 44%.
Leasing Activity
CyrusOne leased approximately 48,000 colocation square feet (CSF), or
4.8 MW of power, in the second quarter. Leases signed in the second
quarter represent approximately $1.1 million in monthly recurring rent
inclusive of the monthly impact of installation charges, or
approximately $13 million in annualized contracted GAAP revenue6
excluding estimates for pass-through power. The Company added five new
Fortune 10007 customers in the second quarter, bringing the
total to 151 customers in the Fortune 1000 and 697 customers in total as
of June 30, 2015. The weighted average lease term of the new leases
based on square footage is 90 months, and approximately 79% of the CSF
was leased to metered customers with the remainder leased on a full
service basis. Recurring rent churn8 for the second quarter
of 2015 was 0.6%, compared to 1.4% for the second quarter of 2014.
Portfolio Utilization and Development
As of June 30, 2015, CyrusOne had approximately 1,354,000 CSF across 27
facilities, an increase of approximately 160,000, or 13%, from the same
period in 2014. CSF utilization9 as of the end of the second
quarter was 90%, up from 86% in the same period in 2014. CSF utilization
at our Northern Virginia facility, which was commissioned in the first
quarter, was 98% as of the end of the second quarter. In the second
quarter of 2015, the Company commissioned new data halls at its
Carrollton facility in Dallas and its Phoenix 2 facility, adding a total
of approximately 92,000 CSF. CyrusOne currently has development projects
underway in Austin, Houston, Northern Virginia, and San Antonio that
will add 182,000 CSF. Additionally, the Company has begun construction
on a new facility in Phoenix that will add 150,000 NRSF.
Balance Sheet and Liquidity
As of June 30, 2015, the Company had $729.8 million of long term debt,
cash of $413.5 million, and $245.0 million available under its unsecured
revolving credit facility. The cash balance includes $373.3 million in
net proceeds from the Company's June common stock offering. Of the
proceeds, $170.3 million was used to acquire 5,995,000 operating
partnership units from a subsidiary of Cincinnati Bell on July 1, 2015.
In addition, the Company used the remaining $203.0 million of proceeds
from the common stock offering to partially finance the acquisition of
Cervalis, to pay fees and expenses related to the acquisition, and for
general corporate purposes. On July 1, 2015, to complete the Cervalis
acquisition, the Company borrowed an additional $150 million under the
term loan and closed a private offering of $100 million aggregate
principal amount of their 6.375% senior notes due 2022. After giving
effect to the additional borrowing on July 1, 2015, the Company had
$445.0 million available under its unsecured revolving credit facility.
Dividend and Distribution
On May 7, 2015, the Company announced a dividend and distribution of
$0.315 per share of common stock and common stock equivalent for the
second quarter of 2015. The dividend and distribution was paid on July
15, 2015, to stockholders of record at the close of business on June 26,
2015.
Additionally, today the Company is announcing a dividend and
distribution of $0.315 per share of common stock and common stock
equivalent for the third quarter of 2015. The dividend and distribution
will be paid on October 15, 2015, to stockholders of record at the close
of business on September 25, 2015.
Guidance
CyrusOne is updating guidance for full year 2015, including the impact
of the Cervalis acquisition, which closed on July 1.
The annual guidance provided below represents forward-looking
statements, which are based on current economic conditions, internal
assumptions about the Company's existing customer base and the supply
and demand dynamics of the markets in which CyrusOne operates.
|
|
Original 2015 CyrusOne
|
|
Revised 2015 CyrusOne
|
|
2015 Cervalis
|
|
2015 Combined
|
Category
|
|
Guidance
|
|
Guidance
|
|
Guidance
|
|
Guidance
|
Total Revenue
|
|
$370 - $385 million
|
|
$361 - $365 million
|
|
$37 - $39 million
|
|
$398 - $404 million
|
Base Revenue
|
|
$322 - $332 million
|
|
$322 - $325 million
|
|
$33 - $34 million
|
|
$355 - $359 million
|
Metered Power Reimbursements
|
|
$48 - $53 million
|
|
$39 - $40 million
|
|
$4 - $5 million
|
|
$43 - $45 million
|
Adjusted EBITDA
|
|
$185 - $195 million
|
|
$191 - $193 million
|
|
$18 - $20 million
|
|
$209 - $213 million
|
Normalized FFO per diluted common share or common share equivalent*
|
|
$1.90 - $2.00
|
|
-
|
|
-
|
|
$2.07 - $2.13
|
Capital Expenditures
|
|
$215 - $240 million
|
|
$225 - $235 million
|
|
$35 - $40 million
|
|
$260 - $275 million
|
Development**
|
|
$210 - $230 million
|
|
$221 - $227 million
|
|
$34 - $38 million
|
|
$255 - $265 million
|
Recurring
|
|
$5 - $10 million
|
|
$4 - $8 million
|
|
$1 - $2 million
|
|
$5 - $10 million
|
* Combined guidance assumes weighted average diluted common share or
common share equivalents for 2015 of approximately 69.5 million, which
includes the impact of the June equity offering.
** Development capital is inclusive of capital used for the acquisition
of land for future development.
|
|
|
Normalized FFO per Share*
|
|
|
|
Original 2015 CyrusOne Guidance Midpoint
|
|
$1.95
|
CyrusOne Normalized FFO per Share Improvement
|
|
$.08 - $.12
|
Cervalis Normalized FFO per Share Impact
|
|
$.16 - $.18
|
Equity Dilution
|
|
($0.12)
|
2015 Combined Guidance Midpoint
|
|
$2.10
|
|
|
|
Additional Cervalis Run-Rate Synergy Benefit:
|
|
|
Expense**
|
|
$.03 - $.04
|
Lease-Up of Existing Inventory***
|
|
$.08 - $.12
|
*Share count assumptions for pre- and post-acquisition per share
calculations are ~65.8 million and ~72.8 million, respectively. Combined
FY'15 guidance midpoint assumes ~69.5 million weighted average shares.
**Potential additional accretion on a steady-state basis by early FY'16.
***Potential additional accretion on a steady-state basis.
Acquisition of Cervalis
On July 1, 2015, CyrusOne closed the acquisition of Cervalis. Pursuant
to the terms of the transaction, a subsidiary of CyrusOne acquired
Cervalis for approximately $400 million, excluding transaction-related
expenses, in an all cash transaction. The acquisition was financed
through proceeds from the Company's common stock and senior notes
offerings as well as drawings under its senior unsecured credit facility.
Cervalis is an operator of four Tier 3+ data center facilities and two
work area recovery facilities (collectively, the "Facilities") serving
the New York metropolitan area. The Cervalis Facilities currently
comprise more than 500,000 gross square feet of space, including more
than 130,000 colocation square feet and over 100,000 square feet of work
area recovery space. As of the end of the second quarter, 79% of the
colocation square feet within the Cervalis Facilities was utilized. In
addition to the currently available raised floor space, it currently has
capacity under shell to deliver an incremental 50,000 colocation square
feet.
In addition to being immediately accretive, the transaction is expected
to provide the following strategic benefits to CyrusOne:
-
Enhanced Geographic Diversification: The combination will
greatly enhance CyrusOne's geographic diversification, establishing a
presence in the Northeast with the addition of a platform that
includes 4 data centers in the New York metropolitan market.
-
Access to a High Quality Enterprise Customer Base: Cervalis
serves approximately 220 enterprise customers, with a particular niche
servicing some of the world's largest financial institutions,
including several Fortune 1000 companies. Approximately two-thirds of
its second quarter 2015 revenue came from customers within the
financial services industry.
-
Strengthened Product Portfolio: The transaction provides a set
of interconnected data centers in one of the world's largest internet
hubs, further enhancing the attractiveness of CyrusOne's National IX
platform. Access to a high-end managed services offering provides a
platform that can be selectively leveraged across CyrusOne's existing
customer base to accelerate growth.
Upcoming Conferences and Events
-
Cowen Communications Infrastructure Summit on August 12 in Boulder,
Colorado
-
BofAML Global Real Estate Conference on September 16-17 in New York
City
-
Morgan Stanley Data Center Corporate Access Day on October 7 in New
York City
-
Evercore ISI Real Estate Conference on October 8 in New York City
Conference Call Details
CyrusOne will host a conference call on August 5, 2015, at 12:00 PM
Eastern Time (11:00 AM Central Time) to discuss its results for the
second quarter of 2015. 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 August
5, 2015, until 9:00 AM Eastern Time (8:00 AM Central Time) on August 17,
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 10068979.
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, including statements about
the potential financial and other benefits of our acquisition of
Cervalis. 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, risks
related to our acquisition of Cervalis, which include, but are not
limited to, the risk that the expected increased revenues, funds from
operations, net income and cost savings and other synergies from the
transaction may not be fully realized or may take longer to realize than
expected, 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, Adjusted 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, Adjusted 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,
Adjusted NOI, AFFO and Adjusted EBITDA should be considered only as
supplements to net income as measures of our performance. FFO,
Normalized FFO, NOI, Adjusted 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. From time to time, there may be
non-recurring costs in property operating expenses, and as a result the
Company may present Adjusted Net Operating Income (Adjusted NOI) to
exclude the impacts of those costs.
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 66,012,745 for the second quarter of 2015.
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
plus the monthly impact of installation charges, multiplied by 12. It
can be shown both inclusive and exclusive of the Company's estimate of
customer reimbursements for metered power.
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 900 customers,
including nine of the Fortune 20 and 166 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 31 data
centers worldwide.
|
CyrusOne Inc.
|
Condensed Consolidated Statements of Operations
|
(Dollars in millions, except per share amounts)
|
(Unaudited)
|
|
|
|
Three Months Ended June 30,
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
|
Change
|
|
Change
|
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|
2015
|
|
2014
|
|
$
|
|
%
|
Revenue
|
|
$
|
89.1
|
|
|
$
|
81.7
|
|
|
$
|
7.4
|
|
|
9
|
%
|
|
$
|
174.8
|
|
|
$
|
159.2
|
|
|
$
|
15.6
|
|
|
10
|
%
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses
|
|
32.8
|
|
|
31.8
|
|
|
1.0
|
|
|
3
|
%
|
|
65.1
|
|
|
59.5
|
|
|
5.6
|
|
|
9
|
%
|
Sales and marketing
|
|
2.8
|
|
|
3.5
|
|
|
(0.7
|
)
|
|
(20
|
)%
|
|
5.7
|
|
|
6.5
|
|
|
(0.8
|
)
|
|
(12
|
)%
|
General and administrative
|
|
9.9
|
|
|
8.4
|
|
|
1.5
|
|
|
18
|
%
|
|
19.0
|
|
|
15.7
|
|
|
3.3
|
|
|
21
|
%
|
Depreciation and amortization
|
|
31.4
|
|
|
29.8
|
|
|
1.6
|
|
|
5
|
%
|
|
62.5
|
|
|
57.4
|
|
|
5.1
|
|
|
9
|
%
|
Transaction costs
|
|
9.6
|
|
|
0.8
|
|
|
8.8
|
|
|
n/m
|
|
9.7
|
|
|
0.9
|
|
|
8.8
|
|
|
n/m
|
Asset impairments
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
%
|
|
8.6
|
|
|
-
|
|
|
8.6
|
|
|
n/m
|
Total costs and expenses
|
|
86.5
|
|
|
74.3
|
|
|
12.2
|
|
|
16
|
%
|
|
170.6
|
|
|
140.0
|
|
|
30.6
|
|
|
22
|
%
|
Operating income
|
|
2.6
|
|
|
7.4
|
|
|
(4.8
|
)
|
|
(65
|
)%
|
|
4.2
|
|
|
19.2
|
|
|
(15.0
|
)
|
|
(78
|
)%
|
Interest expense
|
|
8.7
|
|
|
10.7
|
|
|
(2.0
|
)
|
|
(19
|
)%
|
|
17.1
|
|
|
21.4
|
|
|
4.3
|
|
|
20
|
%
|
Net loss before income taxes
|
|
(6.1
|
)
|
|
(3.3
|
)
|
|
(2.8
|
)
|
|
85
|
%
|
|
(12.9
|
)
|
|
(2.2
|
)
|
|
(10.7
|
)
|
|
n/m
|
Income tax expense
|
|
(0.4
|
)
|
|
(0.3
|
)
|
|
(0.1
|
)
|
|
33
|
%
|
|
(0.8
|
)
|
|
(0.7
|
)
|
|
(0.1
|
)
|
|
14
|
%
|
Net loss
|
|
(6.5
|
)
|
|
(3.6
|
)
|
|
(2.9
|
)
|
|
81
|
%
|
|
(13.7
|
)
|
|
(2.9
|
)
|
|
(10.8
|
)
|
|
n/m
|
Noncontrolling interest in net loss
|
|
(1.0
|
)
|
|
(2.5
|
)
|
|
1.5
|
|
|
(60
|
)%
|
|
(3.9
|
)
|
|
(2.0
|
)
|
|
(1.9
|
)
|
|
95
|
%
|
Net loss attributed to common stockholders
|
|
$
|
(5.5
|
)
|
|
$
|
(1.1
|
)
|
|
$
|
(4.4
|
)
|
|
n/m
|
|
$
|
(9.8
|
)
|
|
$
|
(0.9
|
)
|
|
$
|
(8.9
|
)
|
|
n/m
|
Loss per common share - basic and diluted
|
|
$
|
(0.11
|
)
|
|
$
|
(0.06
|
)
|
|
$
|
(0.05
|
)
|
|
n/m
|
|
$
|
(0.23
|
)
|
|
$
|
(0.06
|
)
|
|
$
|
(0.17
|
)
|
|
n/m
|
|
CyrusOne Inc.
|
Condensed Consolidated Balance Sheets
|
(Dollars in millions)
|
(Unaudited)
|
|
|
|
June 30,
|
|
December 31,
|
|
Change
|
|
|
2015
|
|
2014
|
|
$
|
|
%
|
Assets
|
|
|
|
|
|
|
|
|
Investment in real estate:
|
|
|
|
|
|
|
|
|
Land
|
|
$
|
93.0
|
|
|
$
|
89.7
|
|
|
$
|
3.3
|
|
|
4
|
%
|
Buildings and improvements
|
|
824.2
|
|
|
812.6
|
|
|
11.6
|
|
|
1
|
%
|
Equipment
|
|
423.4
|
|
|
349.1
|
|
|
74.3
|
|
|
21
|
%
|
Construction in progress
|
|
125.8
|
|
|
127.0
|
|
|
(1.2
|
)
|
|
(1
|
)%
|
Subtotal
|
|
1,466.4
|
|
|
1,378.4
|
|
|
88.0
|
|
|
6
|
%
|
Accumulated depreciation
|
|
(375.4
|
)
|
|
(327.0
|
)
|
|
(48.4
|
)
|
|
15
|
%
|
Net investment in real estate
|
|
1,091.0
|
|
|
1,051.4
|
|
|
39.6
|
|
|
4
|
%
|
Cash and cash equivalents
|
|
413.5
|
|
|
36.5
|
|
|
377.0
|
|
|
n/m
|
Rent and other receivables
|
|
56.3
|
|
|
60.9
|
|
|
(4.6
|
)
|
|
(8
|
)%
|
Goodwill
|
|
276.2
|
|
|
276.2
|
|
|
-
|
|
|
-
|
%
|
Intangible assets, net
|
|
61.6
|
|
|
68.9
|
|
|
(7.3
|
)
|
|
(11
|
)%
|
Due from affiliates
|
|
1.7
|
|
|
0.8
|
|
|
0.9
|
|
|
113
|
%
|
Other assets
|
|
91.4
|
|
|
91.8
|
|
|
(0.4
|
)
|
|
-
|
%
|
Total assets
|
|
$
|
1,991.7
|
|
|
$
|
1,586.5
|
|
|
$
|
405.2
|
|
|
26
|
%
|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
$
|
90.0
|
|
|
$
|
69.9
|
|
|
$
|
20.1
|
|
|
29
|
%
|
Deferred revenue
|
|
66.5
|
|
|
65.7
|
|
|
0.8
|
|
|
1
|
%
|
Due to affiliates
|
|
174.9
|
|
|
7.3
|
|
|
167.6
|
|
|
n/m
|
Capital lease obligations
|
|
12.1
|
|
|
13.4
|
|
|
(1.3
|
)
|
|
(10
|
)%
|
Long-term debt
|
|
729.8
|
|
|
659.8
|
|
|
70.0
|
|
|
11
|
%
|
Other financing arrangements
|
|
52.8
|
|
|
53.4
|
|
|
(0.6
|
)
|
|
(1
|
)%
|
Total liabilities
|
|
1,126.1
|
|
|
869.5
|
|
|
256.6
|
|
|
30
|
%
|
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
66,268,923 and 38,651,517 shares issued and outstanding at June
30, 2015 and December 31, 2014, respectively
|
|
0.6
|
|
|
0.4
|
|
|
0.2
|
|
|
50
|
%
|
Additional paid in capital
|
|
908.3
|
|
|
516.5
|
|
|
391.8
|
|
|
76
|
%
|
Accumulated deficit
|
|
(98.9
|
)
|
|
(55.9
|
)
|
|
(43.0
|
)
|
|
77
|
%
|
Accumulated other comprehensive loss
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|
-
|
|
|
-
|
%
|
Total shareholders' equity
|
|
809.7
|
|
|
460.7
|
|
|
349.0
|
|
|
76
|
%
|
Noncontrolling interest
|
|
55.9
|
|
|
256.3
|
|
|
(200.4
|
)
|
|
(78
|
)%
|
Total equity
|
|
865.6
|
|
|
717.0
|
|
|
148.6
|
|
|
21
|
%
|
Total liabilities and shareholders' equity
|
|
$
|
1,991.7
|
|
|
$
|
1,586.5
|
|
|
$
|
405.2
|
|
|
26
|
%
|
|
CyrusOne Inc.
|
Condensed Consolidated Statements of Operations
|
(Dollars in millions, except per share amounts)
|
(Unaudited)
|
|
For the three months ended:
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
|
2015
|
|
2015
|
|
2014
|
|
2014
|
|
2014
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
Base revenue
|
|
$
|
78.8
|
|
|
$
|
75.9
|
|
|
$
|
75.4
|
|
|
$
|
73.9
|
|
|
$
|
71.4
|
|
Metered Power reimbursements
|
|
10.3
|
|
|
9.8
|
|
|
11.5
|
|
|
10.9
|
|
|
10.3
|
|
Total revenue
|
|
89.1
|
|
|
85.7
|
|
|
86.9
|
|
|
84.8
|
|
|
81.7
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses
|
|
32.8
|
|
|
32.3
|
|
|
32.0
|
|
|
33.0
|
|
|
31.8
|
|
Sales and marketing
|
|
2.8
|
|
|
2.9
|
|
|
3.1
|
|
|
3.2
|
|
|
3.5
|
|
General and administrative
|
|
9.9
|
|
|
9.1
|
|
|
9.9
|
|
|
9.0
|
|
|
8.4
|
|
Depreciation and amortization
|
|
31.4
|
|
|
31.1
|
|
|
30.6
|
|
|
30.0
|
|
|
29.8
|
|
Transaction costs
|
|
9.6
|
|
|
0.1
|
|
|
0.1
|
|
|
-
|
|
|
0.8
|
|
Asset impairments
|
|
-
|
|
|
8.6
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Total costs and expenses
|
|
86.5
|
|
|
84.1
|
|
|
75.7
|
|
|
75.2
|
|
|
74.3
|
|
Operating income
|
|
$
|
2.6
|
|
|
$
|
1.6
|
|
|
$
|
11.2
|
|
|
$
|
9.6
|
|
|
$
|
7.4
|
|
Interest expense
|
|
8.7
|
|
|
8.4
|
|
|
9.1
|
|
|
9.0
|
|
|
10.7
|
|
Loss on extinguishment of debt
|
|
-
|
|
|
-
|
|
|
13.6
|
|
|
-
|
|
|
-
|
|
Net (loss) income before income taxes
|
|
(6.1
|
)
|
|
(6.8
|
)
|
|
(11.5
|
)
|
|
0.6
|
|
|
(3.3
|
)
|
Income tax expense
|
|
(0.4
|
)
|
|
(0.4
|
)
|
|
(0.3
|
)
|
|
(0.4
|
)
|
|
(0.3
|
)
|
Net (loss) income from continuing operations
|
|
(6.5
|
)
|
|
(7.2
|
)
|
|
(11.8
|
)
|
|
0.2
|
|
|
(3.6
|
)
|
Noncontrolling interest in net (loss) income
|
|
(1.0
|
)
|
|
(2.9
|
)
|
|
(4.8
|
)
|
|
0.1
|
|
|
(2.5
|
)
|
Net (loss) income attributed to common stockholders
|
|
$
|
(5.5
|
)
|
|
$
|
(4.3
|
)
|
|
$
|
(7.0
|
)
|
|
$
|
0.1
|
|
|
$
|
(1.1
|
)
|
Loss per common share - basic and diluted
|
|
$
|
(0.11
|
)
|
|
$
|
(0.12
|
)
|
|
$
|
(0.19
|
)
|
|
$
|
-
|
|
|
$
|
(0.06
|
)
|
|
CyrusOne Inc.
|
Condensed Consolidated Balance Sheets
|
(Dollars in millions)
|
(Unaudited)
|
|
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
|
2015
|
|
2015
|
|
2014
|
|
2014
|
|
2014
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Investment in real estate:
|
|
|
|
|
|
|
|
|
|
|
Land
|
|
$
|
93.0
|
|
|
$
|
93.0
|
|
|
$
|
89.7
|
|
|
$
|
89.7
|
|
|
$
|
89.7
|
|
Buildings and improvements
|
|
824.2
|
|
|
820.8
|
|
|
812.6
|
|
|
796.6
|
|
|
791.7
|
|
Equipment
|
|
423.4
|
|
|
382.7
|
|
|
349.1
|
|
|
312.5
|
|
|
298.8
|
|
Construction in progress
|
|
125.8
|
|
|
121.0
|
|
|
127.0
|
|
|
120.9
|
|
|
59.5
|
|
Subtotal
|
|
1,466.4
|
|
|
1,417.5
|
|
|
1,378.4
|
|
|
1,319.7
|
|
|
1,239.7
|
|
Accumulated depreciation
|
|
(375.4
|
)
|
|
(350.1
|
)
|
|
(327.0
|
)
|
|
(303.5
|
)
|
|
(280.6
|
)
|
Net investment in real estate
|
|
1,091.0
|
|
|
1,067.4
|
|
|
1,051.4
|
|
|
1,016.2
|
|
|
959.1
|
|
Cash and cash equivalents
|
|
413.5
|
|
|
26.0
|
|
|
36.5
|
|
|
30.4
|
|
|
49.3
|
|
Rent and other receivables
|
|
56.3
|
|
|
53.9
|
|
|
60.9
|
|
|
59.1
|
|
|
61.5
|
|
Goodwill
|
|
276.2
|
|
|
276.2
|
|
|
276.2
|
|
|
276.2
|
|
|
276.2
|
|
Intangible assets, net
|
|
61.6
|
|
|
65.3
|
|
|
68.9
|
|
|
73.2
|
|
|
77.4
|
|
Due from affiliates
|
|
1.7
|
|
|
1.4
|
|
|
0.8
|
|
|
1.3
|
|
|
0.5
|
|
Other assets
|
|
91.4
|
|
|
86.4
|
|
|
91.8
|
|
|
81.6
|
|
|
82.1
|
|
Total assets
|
|
$
|
1,991.7
|
|
|
$
|
1,576.6
|
|
|
$
|
1,586.5
|
|
|
$
|
1,538.0
|
|
|
$
|
1,506.1
|
|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
$
|
90.0
|
|
|
$
|
67.1
|
|
|
$
|
69.9
|
|
|
$
|
100.2
|
|
|
$
|
83.9
|
|
Deferred revenue
|
|
66.5
|
|
|
65.5
|
|
|
65.7
|
|
|
66.1
|
|
|
66.7
|
|
Due to affiliates
|
|
174.9
|
|
|
9.1
|
|
|
7.3
|
|
|
7.4
|
|
|
7.4
|
|
Capital lease obligations
|
|
12.1
|
|
|
12.6
|
|
|
13.4
|
|
|
14.2
|
|
|
15.0
|
|
Long-term debt
|
|
729.8
|
|
|
679.8
|
|
|
659.8
|
|
|
555.0
|
|
|
525.0
|
|
Other financing arrangements
|
|
52.8
|
|
|
51.3
|
|
|
53.4
|
|
|
55.1
|
|
|
57.1
|
|
Total liabilities
|
|
1,126.1
|
|
|
885.4
|
|
|
869.5
|
|
|
798.0
|
|
|
755.1
|
|
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
|
|
0.6
|
|
|
0.4
|
|
|
0.4
|
|
|
0.4
|
|
|
0.4
|
|
Additional paid in capital
|
|
908.3
|
|
|
518.9
|
|
|
516.5
|
|
|
513.7
|
|
|
511.1
|
|
Accumulated deficit
|
|
(98.9
|
)
|
|
(72.5
|
)
|
|
(55.9
|
)
|
|
(40.8
|
)
|
|
(32.7
|
)
|
Accumulated other comprehensive loss
|
|
(0.3
|
)
|
|
(0.6
|
)
|
|
(0.3
|
)
|
|
-
|
|
|
-
|
|
Total shareholders' equity
|
|
809.7
|
|
|
446.2
|
|
|
460.7
|
|
|
473.3
|
|
|
478.8
|
|
Noncontrolling interest
|
|
55.9
|
|
|
245.0
|
|
|
256.3
|
|
|
266.7
|
|
|
272.2
|
|
Total shareholders' equity
|
|
865.6
|
|
|
691.2
|
|
|
717.0
|
|
|
740.0
|
|
|
751.0
|
|
Total liabilities and shareholders' equity
|
|
$
|
1,991.7
|
|
|
$
|
1,576.6
|
|
|
$
|
1,586.5
|
|
|
$
|
1,538.0
|
|
|
$
|
1,506.1
|
|
|
CyrusOne Inc.
|
Condensed Consolidated Statements of Cash Flow
|
(Dollars in millions)
|
(Unaudited)
|
|
|
|
Six Months
|
|
Six Months
|
|
Three Months
|
|
Three Months
|
|
|
Ended June
|
|
Ended June
|
|
Ended June
|
|
Ended June
|
|
|
30, 2015
|
|
30, 2014
|
|
30, 2015
|
|
30, 2014
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(13.7
|
)
|
|
$
|
(2.9
|
)
|
|
$
|
(6.5
|
)
|
|
$
|
(3.6
|
)
|
Adjustments to reconcile net loss to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
62.5
|
|
|
57.4
|
|
|
31.4
|
|
|
29.8
|
|
Noncash interest expense
|
|
1.4
|
|
|
1.8
|
|
|
0.7
|
|
|
0.9
|
|
Stock-based compensation expense
|
|
6.2
|
|
|
5.0
|
|
|
3.2
|
|
|
2.8
|
|
Provision for bad debt write off
|
|
0.2
|
|
|
0.6
|
|
|
0.2
|
|
|
0.6
|
|
Asset impairments
|
|
8.6
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Change in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Rent receivables and other assets
|
|
(7.8
|
)
|
|
(31.4
|
)
|
|
(9.6
|
)
|
|
(24.7
|
)
|
Accounts payable and accrued expenses
|
|
5.4
|
|
|
2.5
|
|
|
8.3
|
|
|
(1.9
|
)
|
Deferred revenues
|
|
0.8
|
|
|
10.8
|
|
|
1.0
|
|
|
1.9
|
|
Due to affiliates
|
|
(1.9
|
)
|
|
0.2
|
|
|
(0.3
|
)
|
|
0.3
|
|
Net cash provided by operating activities
|
|
61.7
|
|
|
44.0
|
|
|
28.4
|
|
|
6.1
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
Capital expenditures - acquisitions of real estate
|
|
(17.3
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
Capital expenditures - other development
|
|
(74.2
|
)
|
|
(116.8
|
)
|
|
(42.3
|
)
|
|
(67.1
|
)
|
Net cash used in investing activities
|
|
(91.5
|
)
|
|
(116.8
|
)
|
|
(42.3
|
)
|
|
(67.1
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
Issuance of common stock
|
|
799.3
|
|
|
355.9
|
|
|
799.3
|
|
|
355.9
|
|
Stock issuance costs
|
|
(0.6
|
)
|
|
(0.5
|
)
|
|
(0.6
|
)
|
|
(0.5
|
)
|
Acquisition of operating partnership units
|
|
(426.0
|
)
|
|
(355.9
|
)
|
|
(426.0
|
)
|
|
(355.9
|
)
|
Dividends paid
|
|
(33.8
|
)
|
|
(24.0
|
)
|
|
(20.3
|
)
|
|
(13.6
|
)
|
Borrowings from revolving credit agreement
|
|
70.0
|
|
|
-
|
|
|
(1.0
|
)
|
|
-
|
|
Payments on capital leases and other financing arrangements
|
|
(2.1
|
)
|
|
(2.2
|
)
|
|
50.0
|
|
|
(0.8
|
)
|
Net cash provided by (used in) financing activities
|
|
406.8
|
|
|
(26.7
|
)
|
|
401.4
|
|
|
(14.9
|
)
|
Net increase (decrease) in cash and cash equivalents
|
|
377.0
|
|
|
(99.5
|
)
|
|
387.5
|
|
|
(75.9
|
)
|
Cash and cash equivalents at beginning of period
|
|
36.5
|
|
|
148.8
|
|
|
26.0
|
|
|
125.2
|
|
Cash and cash equivalents at end of period
|
|
$
|
413.5
|
|
|
$
|
49.3
|
|
|
$
|
413.5
|
|
|
$
|
49.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
|
|
Six Months
|
|
Three Months
|
|
Three Months
|
|
|
Ended June
|
|
Ended June
|
|
Ended June
|
|
Ended June
|
|
|
30, 2015
|
|
30, 2014
|
|
30, 2015
|
|
30, 2014
|
Supplemental disclosures of cash flow information
|
|
|
|
|
|
|
|
|
Cash paid for interest
|
|
$
|
18.5
|
|
|
$
|
20.5
|
|
|
$
|
15.7
|
|
|
$
|
18.9
|
|
Cash paid for income taxes
|
|
1.9
|
|
|
0.3
|
|
|
0.8
|
|
|
-
|
|
Supplemental disclosures of noncash investing and financing
activities
|
|
|
|
|
|
|
|
|
Capitalized interest
|
|
2.5
|
|
|
0.9
|
|
|
1.2
|
|
|
0.4
|
|
Acquisition of property in accounts payable and other liabilities
|
|
27.2
|
|
|
45.0
|
|
|
27.2
|
|
|
45.0
|
|
Dividends declared
|
|
25.3
|
|
|
13.7
|
|
|
25.3
|
|
|
13.7
|
|
Forward contract for purchase of operating partnership units
|
|
170.3
|
|
|
-
|
|
|
170.3
|
|
|
-
|
|
Stock issuance costs
|
|
-
|
|
|
0.8
|
|
|
-
|
|
|
0.8
|
|
Debt issuance costs
|
|
3.1
|
|
|
-
|
|
|
3.1
|
|
|
-
|
|
Taxes on vesting of shares
|
|
0.7
|
|
|
-
|
|
|
0.7
|
|
|
-
|
|
|
CyrusOne Inc.
|
Net Operating Income and Reconciliation of Net Income (Loss) to
Adjusted EBITDA
|
(Dollars in millions)
|
(Unaudited)
|
|
|
|
Six Months ended
|
|
|
|
|
|
Three Months Ended
|
|
|
June 30,
|
|
Change
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30
|
|
June 30,
|
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|
2015
|
|
2015
|
|
2014
|
|
2014
|
|
2014
|
Net Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
174.8
|
|
|
$
|
159.2
|
|
|
$
|
15.6
|
|
|
10%
|
|
$
|
89.1
|
|
|
$
|
85.7
|
|
|
$
|
86.9
|
|
|
$
|
84.8
|
|
|
$
|
81.7
|
|
Property operating expenses
|
|
65.1
|
|
|
59.5
|
|
|
5.6
|
|
|
9%
|
|
32.8
|
|
|
32.3
|
|
|
32.0
|
|
|
33.0
|
|
|
31.8
|
|
Net Operating Income (NOI)
|
|
109.7
|
|
|
99.7
|
|
|
10.0
|
|
|
10%
|
|
56.3
|
|
|
53.4
|
|
|
54.9
|
|
|
51.8
|
|
|
49.9
|
|
Add Back: Lease exit costs
|
|
0.7
|
|
|
-
|
|
|
0.7
|
|
|
n/m
|
|
-
|
|
|
0.7
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Adjusted Net Operating Income (Adjusted NOI)
|
|
$
|
110.4
|
|
|
$
|
99.7
|
|
|
$
|
10.7
|
|
|
11%
|
|
$
|
56.3
|
|
|
$
|
54.1
|
|
|
$
|
54.9
|
|
|
$
|
51.8
|
|
|
$
|
49.9
|
|
Adjusted NOI as a % of Revenue
|
|
63.2
|
%
|
|
62.6
|
%
|
|
|
|
|
|
63.2
|
%
|
|
63.1
|
%
|
|
63.2
|
%
|
|
61.1
|
%
|
|
61.1
|
%
|
Reconciliation of Net (Loss) Income to Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
(13.7
|
)
|
|
$
|
(2.9
|
)
|
|
$
|
(10.8
|
)
|
|
n/m
|
|
$
|
(6.5
|
)
|
|
$
|
(7.2
|
)
|
|
$
|
(11.8
|
)
|
|
$
|
0.2
|
|
|
$
|
(3.6
|
)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.
|
|
|
Interest expense
|
|
17.1
|
|
|
21.4
|
|
|
(4.3
|
)
|
|
(20)%
|
|
8.7
|
|
|
8.4
|
|
|
9.1
|
|
|
9.0
|
|
|
10.7
|
|
Income tax expense
|
|
0.8
|
|
|
0.7
|
|
|
0.1
|
|
|
14%
|
|
0.4
|
|
|
0.4
|
|
|
0.3
|
|
|
0.4
|
|
|
0.3
|
|
Depreciation and amortization
|
|
62.5
|
|
|
57.4
|
|
|
5.1
|
|
|
9%
|
|
31.4
|
|
|
31.1
|
|
|
30.6
|
|
|
30.0
|
|
|
29.8
|
|
Transaction costs
|
|
9.7
|
|
|
0.9
|
|
|
8.8
|
|
|
n/m
|
|
9.6
|
|
|
0.1
|
|
|
0.1
|
|
|
-
|
|
|
0.8
|
|
Legal claim costs
|
|
0.3
|
|
|
-
|
|
|
0.3
|
|
|
|
|
0.3
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Stock-based compensation
|
|
6.2
|
|
|
5.0
|
|
|
1.2
|
|
|
24%
|
|
3.2
|
|
|
3.0
|
|
|
2.7
|
|
|
2.6
|
|
|
2.8
|
|
Loss on extinguishment of debt
|
|
-
|
|
|
-
|
|
|
-
|
|
|
n/m
|
|
-
|
|
|
-
|
|
|
13.6
|
|
|
-
|
|
|
-
|
|
Lease exit costs
|
|
0.7
|
|
|
-
|
|
|
0.7
|
|
|
|
|
-
|
|
|
0.7
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Asset impairments
|
|
8.6
|
|
|
-
|
|
|
8.6
|
|
|
n/m
|
|
-
|
|
|
8.6
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Adjusted EBITDA
|
|
$
|
92.2
|
|
|
$
|
82.5
|
|
|
$
|
9.7
|
|
|
12%
|
|
$
|
47.1
|
|
|
$
|
45.1
|
|
|
$
|
44.6
|
|
|
$
|
42.2
|
|
|
$
|
40.8
|
|
Adjusted EBITDA as a % of Revenue
|
|
52.7
|
%
|
|
51.8
|
%
|
|
|
|
|
|
52.9
|
%
|
|
52.6
|
%
|
|
51.3
|
%
|
|
49.8
|
%
|
|
49.9
|
%
|
|
CyrusOne Inc.
|
Reconciliation of Net Income (Loss) to FFO, Normalized FFO, and
AFFO
|
(Dollars in millions)
|
(Unaudited)
|
|
|
|
Six Months ended
|
|
|
|
|
|
Three Months Ended
|
|
|
June 30,
|
|
Change
|
|
June 30, 2015
|
|
March 31, 2015
|
|
December 31, 2014
|
|
September 30, 2014
|
|
June 30, 2014
|
2015
|
|
2014
|
|
$
|
|
%
|
|
Reconciliation of Net (Loss) Income to FFO and Normalized FFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
$
|
(13.7
|
)
|
|
$
|
(2.9
|
)
|
|
$
|
(10.8
|
)
|
|
n/m
|
|
$
|
(6.5
|
)
|
|
$
|
(7.2
|
)
|
|
$
|
(11.8
|
)
|
|
$
|
0.2
|
|
|
$
|
(3.6
|
)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate depreciation and amortization
|
|
52.3
|
|
|
46.3
|
|
|
6.0
|
|
|
13
|
%
|
|
26.3
|
|
|
26.0
|
|
|
25.1
|
|
|
24.5
|
|
|
24.1
|
|
Amortization of customer relationship intangibles
|
|
7.3
|
|
|
8.5
|
|
|
(1.2
|
)
|
|
(14
|
)%
|
|
3.7
|
|
|
3.6
|
|
|
4.2
|
|
|
4.2
|
|
|
4.3
|
|
Real estate impairments
|
|
8.6
|
|
|
-
|
|
|
8.6
|
|
|
n/m
|
|
-
|
|
|
8.6
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Funds from Operations (FFO)
|
|
$
|
54.5
|
|
|
$
|
51.9
|
|
|
$
|
2.6
|
|
|
5
|
%
|
|
$
|
23.5
|
|
|
$
|
31.0
|
|
|
$
|
17.5
|
|
|
$
|
28.9
|
|
|
$
|
24.8
|
|
Loss on extinguishment of debt
|
|
-
|
|
|
-
|
|
|
-
|
|
|
n/m
|
|
-
|
|
|
-
|
|
|
13.6
|
|
|
-
|
|
|
-
|
|
Transaction costs
|
|
9.7
|
|
|
0.9
|
|
|
8.8
|
|
|
n/m
|
|
9.6
|
|
|
0.1
|
|
|
0.1
|
|
|
-
|
|
|
0.8
|
|
Legal claim costs
|
|
0.3
|
|
|
-
|
|
|
0.3
|
|
|
n/m
|
|
0.3
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Lease exit costs
|
|
0.8
|
|
|
-
|
|
|
0.8
|
|
|
n/m
|
|
-
|
|
|
0.8
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Normalized Funds from Operations (Normalized FFO)
|
|
$
|
65.3
|
|
|
$
|
52.8
|
|
|
$
|
12.5
|
|
|
24
|
%
|
|
$
|
33.4
|
|
|
$
|
31.9
|
|
|
$
|
31.2
|
|
|
$
|
28.9
|
|
|
$
|
25.6
|
|
Normalized FFO per diluted common share or common share equivalent
|
|
$
|
0.99
|
|
|
$
|
0.81
|
|
|
$
|
0.18
|
|
|
22
|
%
|
|
$
|
0.50
|
|
|
$
|
0.49
|
|
|
$
|
0.48
|
|
|
$
|
0.44
|
|
|
$
|
0.39
|
|
Weighted Average diluted common share and common share equivalent
outstanding
|
|
65.7
|
|
|
65.2
|
|
|
0.5
|
|
|
1
|
%
|
|
66.0
|
|
|
65.5
|
|
|
65.3
|
|
|
65.3
|
|
|
65.3
|
|
Reconciliation of Normalized FFO to AFFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized FFO
|
|
$
|
65.3
|
|
|
$
|
52.8
|
|
|
$
|
12.5
|
|
|
24
|
%
|
|
$
|
33.4
|
|
|
$
|
31.9
|
|
|
$
|
31.2
|
|
|
$
|
28.9
|
|
|
$
|
25.6
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of deferred financing costs
|
|
1.4
|
|
|
1.8
|
|
|
(0.4
|
)
|
|
(22
|
)%
|
|
0.7
|
|
|
0.7
|
|
|
0.7
|
|
|
0.9
|
|
|
0.9
|
|
Stock-based compensation
|
|
6.1
|
|
|
5.0
|
|
|
1.1
|
|
|
22
|
%
|
|
3.1
|
|
|
3.0
|
|
|
2.7
|
|
|
2.6
|
|
|
2.8
|
|
Non-real estate depreciation and amortization
|
|
2.9
|
|
|
2.6
|
|
|
0.3
|
|
|
12
|
%
|
|
1.4
|
|
|
1.5
|
|
|
1.4
|
|
|
1.2
|
|
|
1.4
|
|
Deferred revenue and straight line rent adjustments
|
|
(1.7
|
)
|
|
(6.7
|
)
|
|
5.0
|
|
|
(75
|
)%
|
|
(0.3
|
)
|
|
(1.4
|
)
|
|
(2.3
|
)
|
|
(1.5
|
)
|
|
(3.7
|
)
|
Leasing commissions
|
|
(2.0
|
)
|
|
(2.0
|
)
|
|
-
|
|
|
-
|
%
|
|
(1.5
|
)
|
|
(0.5
|
)
|
|
(2.9
|
)
|
|
(0.9
|
)
|
|
(1.4
|
)
|
Recurring capital expenditures
|
|
(0.5
|
)
|
|
(0.7
|
)
|
|
0.2
|
|
|
(29
|
)%
|
|
(0.3
|
)
|
|
(0.2
|
)
|
|
(1.0
|
)
|
|
(2.1
|
)
|
|
(0.3
|
)
|
Adjusted Funds from Operations (AFFO)
|
|
$
|
71.5
|
|
|
$
|
52.8
|
|
|
$
|
18.7
|
|
|
35
|
%
|
|
$
|
36.5
|
|
|
$
|
35.0
|
|
|
$
|
29.8
|
|
|
$
|
29.1
|
|
|
$
|
25.3
|
|
|
CyrusOne Inc.
|
Colocation Square Footage (CSF) and Utilization
|
(Unaudited)
|
|
|
|
As of June 30, 2015
|
|
As of December 31, 2014
|
|
As of June 30, 2014
|
Market
|
|
Colocation Space (CSF)(a)
|
|
CSF Utilized(b)
|
|
Colocation Space (CSF)(a)
|
|
CSF Utilized(b)
|
|
Colocation Space (CSF)(a)
|
|
CSF Utilized(b)
|
Cincinnati
|
|
420,223
|
|
|
91
|
%
|
|
420,223
|
|
|
90
|
%
|
|
419,301
|
|
|
90
|
%
|
Dallas
|
|
350,946
|
|
|
85
|
%
|
|
294,969
|
|
|
86
|
%
|
|
294,873
|
|
|
78
|
%
|
Houston
|
|
255,094
|
|
|
86
|
%
|
|
255,094
|
|
|
85
|
%
|
|
268,094
|
|
|
88
|
%
|
Phoenix
|
|
149,620
|
|
|
100
|
%
|
|
114,026
|
|
|
100
|
%
|
|
77,528
|
|
|
98
|
%
|
Austin
|
|
59,995
|
|
|
94
|
%
|
|
59,995
|
|
|
87
|
%
|
|
54,003
|
|
|
84
|
%
|
San Antonio
|
|
43,843
|
|
|
100
|
%
|
|
43,843
|
|
|
100
|
%
|
|
43,843
|
|
|
100
|
%
|
Northern Virginia
|
|
37,485
|
|
|
98
|
%
|
|
-
|
|
|
n/a
|
|
-
|
|
|
n/a
|
Chicago
|
|
23,298
|
|
|
55
|
%
|
|
23,298
|
|
|
58
|
%
|
|
23,298
|
|
|
53
|
%
|
International
|
|
13,200
|
|
|
80
|
%
|
|
13,200
|
|
|
80
|
%
|
|
13,200
|
|
|
80
|
%
|
Total Footprint
|
|
1,353,704
|
|
|
90
|
%
|
|
1,224,648
|
|
|
88
|
%
|
|
1,194,140
|
|
|
86
|
%
|
(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)
|
|
|
|
Original 2015
|
|
Revised 2015
|
|
2015 Cervalis
|
|
2015 Combined
|
Category
|
|
CyrusOne Guidance
|
|
CyrusOne Guidance
|
|
Guidance
|
|
Guidance
|
Total Revenue
|
|
$370 - $385 million
|
|
$361 - $365 million
|
|
$37 - $39 million
|
|
$398 - $404 million
|
Base Revenue
|
|
$322 - $332 million
|
|
$322 - $325 million
|
|
$33 - $34 million
|
|
$355 - $359 million
|
Metered Power Reimbursements
|
|
$48 - $53 million
|
|
$39 -$40 million
|
|
$4 - $5 million
|
|
$43 - $45 million
|
Adjusted EBITDA
|
|
$185 - $195 million
|
|
$191 - $193 million
|
|
$18 - $20 million
|
|
$209 -$213 million
|
Normalized FFO per diluted common share or common share equivalent*
|
|
$1.90 - $2.00
|
|
-
|
|
-
|
|
$2.07 - $2.13
|
Capital Expenditures
|
|
$215 - $240 million
|
|
$225 - $235 million
|
|
$35 - $40 million
|
|
$260 - $275 million
|
Development**
|
|
$210 - $230 million
|
|
$221 - $227 million
|
|
$34 - $38 million
|
|
$255 -$265 million
|
Recurring
|
|
$5 - $10 million
|
|
$4 -$8 million
|
|
$1 -$2 million
|
|
$5 -$10 million
|
*
|
Combined guidance assumes weighted average diluted common share or
common share equivalents for 2015 of ~69.5 million, which includes
the impact of the June equity offering.
|
**
|
Development capital is inclusive of capital used for the acquisition
of land for future development
|
|
Normalized FFO per Share*
|
|
|
|
Original 2015 CyrusOne Guidance Midpoint
|
|
$1.95
|
CyrusOne Normalized FFO per Share Improvement
|
|
$.08 - $.12
|
Cervalis Normalized FFO per Share Impact
|
|
$.16 - $.18
|
Equity Dilution
|
|
($0.12)
|
2015 Combined Guidance Midpoint
|
|
$2.10
|
|
|
|
Additional Cervalis Run-Rate Synergy Benefit:
|
|
|
Expense**
|
|
$.03 - $.04
|
Lease-Up of Existing Inventory***
|
|
$.08 - $.12
|
*Share count assumptions for pre- and post-acquisition per share
calculations are ~65.8 million and ~72.8 million, respectively. Combined
FY'15 guidance midpoint assumes ~69.5 million weighted average shares.
**Potential additional accretion on a steady-state basis by early FY'16.
***Potential additional accretion on a steady-state basis.
|
CyrusOne Inc.
|
Data Center Portfolio
|
As of June 30, 2015
|
(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
|
|
$
|
50,120,319
|
|
|
112,133
|
|
|
96
|
%
|
|
96
|
%
|
|
10,563
|
|
|
98
|
%
|
|
36,756
|
|
|
159,452
|
|
|
3,000
|
|
|
28
|
West Seventh St., Cincinnati, OH (7th Street)***
|
|
Cincinnati
|
|
39,841,018
|
|
|
212,664
|
|
|
93
|
%
|
|
94
|
%
|
|
5,744
|
|
|
100
|
%
|
|
171,561
|
|
|
389,969
|
|
|
37,000
|
|
|
13
|
S. State Highway 121 Business Lewisville, TX (Lewisville)*
|
|
Dallas
|
|
38,765,999
|
|
|
108,687
|
|
|
96
|
%
|
|
96
|
%
|
|
11,374
|
|
|
97
|
%
|
|
59,345
|
|
|
179,406
|
|
|
-
|
|
|
18
|
W. Frankford, Carrollton, TX (Frankford)
|
|
Dallas
|
|
29,031,224
|
|
|
226,604
|
|
|
74
|
%
|
|
80
|
%
|
|
23,935
|
|
|
89
|
%
|
|
70,181
|
|
|
320,720
|
|
|
272,000
|
|
|
18
|
Southwest Fwy., Houston, TX (Galleria)
|
|
Houston
|
|
26,631,518
|
|
|
63,469
|
|
|
75
|
%
|
|
76
|
%
|
|
23,259
|
|
|
51
|
%
|
|
24,927
|
|
|
111,655
|
|
|
-
|
|
|
14
|
Kingsview Dr., Lebanon, OH (Lebanon)
|
|
Cincinnati
|
|
23,294,731
|
|
|
65,303
|
|
|
76
|
%
|
|
87
|
%
|
|
44,886
|
|
|
72
|
%
|
|
52,950
|
|
|
163,139
|
|
|
65,000
|
|
|
14
|
South Ellis Street Chandler, AZ (Phoenix 1)
|
|
Phoenix
|
|
23,144,664
|
|
|
77,504
|
|
|
100
|
%
|
|
100
|
%
|
|
34,501
|
|
|
11
|
%
|
|
39,129
|
|
|
151,134
|
|
|
31,000
|
|
|
27
|
Westover Hills Blvd, San Antonio, TX (San Antonio 1)
|
|
San Antonio
|
|
20,207,945
|
|
|
43,843
|
|
|
100
|
%
|
|
100
|
%
|
|
5,989
|
|
|
83
|
%
|
|
45,606
|
|
|
95,438
|
|
|
11,000
|
|
|
12
|
Industrial Rd., Florence, KY (Florence)
|
|
Cincinnati
|
|
15,033,622
|
|
|
52,698
|
|
|
100
|
%
|
|
100
|
%
|
|
46,848
|
|
|
87
|
%
|
|
40,374
|
|
|
139,920
|
|
|
-
|
|
|
9
|
Westway Park Blvd., Houston, TX (Houston West 2)
|
|
Houston
|
|
15,540,148
|
|
|
79,492
|
|
|
78
|
%
|
|
80
|
%
|
|
3,355
|
|
|
62
|
%
|
|
55,018
|
|
|
137,865
|
|
|
12,000
|
|
|
12
|
Metropolis Dr., Austin, TX (Austin 2)
|
|
Austin
|
|
12,061,694
|
|
|
43,772
|
|
|
92
|
%
|
|
96
|
%
|
|
1,821
|
|
|
100
|
%
|
|
22,430
|
|
|
68,023
|
|
|
-
|
|
|
5
|
Knightsbridge Dr., Hamilton, OH (Hamilton)*
|
|
Cincinnati
|
|
9,433,581
|
|
|
46,565
|
|
|
77
|
%
|
|
78
|
%
|
|
1,077
|
|
|
100
|
%
|
|
35,336
|
|
|
82,978
|
|
|
-
|
|
|
10
|
South Ellis Street Chandler, AZ (Phoenix 2)
|
|
Phoenix
|
|
6,567,253
|
|
|
72,116
|
|
|
51
|
%
|
|
100
|
%
|
|
5,618
|
|
|
38
|
%
|
|
25,516
|
|
|
103,250
|
|
|
4,000
|
|
|
12
|
Parkway Dr., Mason, OH (Mason)
|
|
Cincinnati
|
|
5,896,601
|
|
|
34,072
|
|
|
100
|
%
|
|
100
|
%
|
|
26,458
|
|
|
98
|
%
|
|
17,193
|
|
|
77,723
|
|
|
-
|
|
|
4
|
E. Ben White Blvd., Austin, TX (Austin 1)****
|
|
Austin
|
|
5,875,218
|
|
|
16,223
|
|
|
87
|
%
|
|
87
|
%
|
|
21,476
|
|
|
100
|
%
|
|
7,517
|
|
|
45,216
|
|
|
-
|
|
|
2
|
Midway Rd., Carrollton, TX (Midway)**
|
|
Dallas
|
|
5,408,662
|
|
|
8,390
|
|
|
100
|
%
|
|
100
|
%
|
|
-
|
|
|
-
|
%
|
|
-
|
|
|
8,390
|
|
|
-
|
|
|
1
|
Kestral Way (London)**
|
|
London
|
|
4,004,573
|
|
|
10,000
|
|
|
99
|
%
|
|
99
|
%
|
|
-
|
|
|
-
|
%
|
|
514
|
|
|
10,514
|
|
|
-
|
|
|
1
|
Springer St., Lombard, IL (Lombard)
|
|
Chicago
|
|
2,277,899
|
|
|
13,516
|
|
|
72
|
%
|
|
73
|
%
|
|
4,115
|
|
|
100
|
%
|
|
12,230
|
|
|
29,861
|
|
|
29,000
|
|
|
3
|
Marsh Lane, Carrollton, TX (Marsh Ln)**
|
|
Dallas
|
|
2,296,022
|
|
|
4,245
|
|
|
100
|
%
|
|
100
|
%
|
|
-
|
|
|
-
|
%
|
|
-
|
|
|
4,245
|
|
|
-
|
|
|
1
|
Goldcoast Dr., Cincinnati, OH (Goldcoast)
|
|
Cincinnati
|
|
1,493,607
|
|
|
2,728
|
|
|
100
|
%
|
|
100
|
%
|
|
5,280
|
|
|
100
|
%
|
|
16,481
|
|
|
24,489
|
|
|
14,000
|
|
|
1
|
Bryan St., Dallas, TX (Bryan St)**
|
|
Dallas
|
|
934,154
|
|
|
3,020
|
|
|
51
|
%
|
|
51
|
%
|
|
-
|
|
|
-
|
%
|
|
-
|
|
|
3,020
|
|
|
-
|
|
|
1
|
Westway Park Blvd., Houston, TX (Houston West 3)
|
|
Houston
|
|
423,504
|
|
|
-
|
|
|
-
|
%
|
|
-
|
%
|
|
8,564
|
|
|
100
|
%
|
|
5,304
|
|
|
13,868
|
|
|
-
|
|
|
-
|
McAuley Place, Blue Ash, OH (Blue Ash)*
|
|
Cincinnati
|
|
531,436
|
|
|
6,193
|
|
|
39
|
%
|
|
39
|
%
|
|
6,950
|
|
|
100
|
%
|
|
2,166
|
|
|
15,309
|
|
|
-
|
|
|
1
|
E. Monroe St., South Bend, IN (Monroe St.)
|
|
South Bend
|
|
488,599
|
|
|
6,350
|
|
|
24
|
%
|
|
24
|
%
|
|
-
|
|
|
-
|
%
|
|
6,478
|
|
|
12,828
|
|
|
4,000
|
|
|
1
|
Crescent Circle, South Bend, IN (Blackthorn)*
|
|
South Bend
|
|
413,359
|
|
|
3,432
|
|
|
32
|
%
|
|
40
|
%
|
|
-
|
|
|
-
|
%
|
|
5,125
|
|
|
8,557
|
|
|
11,000
|
|
|
1
|
Jurong East (Singapore)**
|
|
Singapore
|
|
302,005
|
|
|
3,200
|
|
|
19
|
%
|
|
19
|
%
|
|
-
|
|
|
-
|
%
|
|
-
|
|
|
3,200
|
|
|
-
|
|
|
1
|
Ridgetop Circle, Sterling, VA (Northern Virginia)
|
|
Sterling
|
|
644,933
|
|
|
37,485
|
|
|
85
|
%
|
|
98
|
%
|
|
1,160
|
|
|
100
|
%
|
|
38,118
|
|
|
76,763
|
|
|
6,000
|
|
|
6
|
Total
|
|
|
|
$
|
340,664,288
|
|
|
1,353,704
|
|
|
84
|
%
|
|
90
|
%
|
|
292,973
|
|
|
76
|
%
|
|
790,255
|
|
|
2,436,932
|
|
|
499,000
|
|
|
210
|
*
|
|
|
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.
|
****
|
|
|
For the quarter ended March 31, 2015, we recognized an impairment of
$8.6 million related to the exit of Austin 1, which is a leased
facility.
|
|
|
|
|
(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 June 30, 2015, multiplied by 12. For the month of June
2015, customer reimbursements were $41.5 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 April 1, 2013 through June 30, 2015, 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 June 30, 2015 was $350.2
million. Our annualized effective rent was greater than our
annualized rent as of June 30, 2015 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 June 30, 2015 divided by total CSF. Leases
signed but not commenced as of June 30, 2015 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 June 30, 2015 divided
by total Office & Other space. Leases signed but not commenced as of
June 30, 2015 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 June 30, 2015
|
(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
|
Westover Hills Blvd. (San Antonio 2)
|
San Antonio
|
30,000
|
|
|
20,000
|
|
|
25,000
|
|
|
49,000
|
|
|
124,000
|
|
|
3.0
|
|
|
28
|
|
12-15
|
40-43
|
Westway Park Blvd. (Houston West 3)
|
Houston
|
53,000
|
|
|
-
|
|
|
32,000
|
|
|
213,000
|
|
|
298,000
|
|
|
6.0
|
|
|
32
|
|
21-24
|
53-56
|
Phoenix 3
|
Phoenix
|
-
|
|
|
-
|
|
|
-
|
|
|
150,000
|
|
|
150,000
|
|
|
-
|
|
|
1
|
|
10-12
|
11-13
|
Metropolis Drive (Austin 4)
|
Austin
|
62,000
|
|
|
15,000
|
|
|
22,000
|
|
|
67,000
|
|
|
166,000
|
|
|
3.0
|
|
|
21
|
|
20-24
|
41-45
|
Ridgetop Circle, Sterling, VA (Northern Virginia)
|
Northern Virginia
|
37,000
|
|
|
-
|
|
|
15,000
|
|
|
-
|
|
|
52,000
|
|
|
-
|
|
|
6
|
|
6-9
|
12-15
|
Total
|
|
182,000
|
|
|
35,000
|
|
|
94,000
|
|
|
479,000
|
|
|
790,000
|
|
|
12.0
|
|
|
$
|
88
|
|
$69-84
|
$157-172
|
(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) Actual to date is the cash investment as of June 30, 2015. 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 June 30, 2015
|
(Unaudited)
|
|
|
|
As of
|
Market
|
|
June 30, 2015
|
Cincinnati
|
|
98
|
Dallas
|
|
-
|
Houston
|
|
20
|
Virginia
|
|
10
|
Austin
|
|
22
|
Phoenix
|
|
32
|
San Antonio
|
|
13
|
Chicago
|
|
-
|
International
|
|
-
|
Total Available
|
|
195
|
|
CyrusOne Inc.
|
Leasing Statistics - Lease Signings
|
As of June 30, 2015
|
(Dollars in thousands)
|
(Unaudited)
|
|
Period
|
|
Number of Leases(a)
|
|
Total CSF Signed(b)
|
|
Total kW Signed(c)
|
|
Total MRR Signed ($000)(d)
|
|
Weighted Average Lease Term(e)
|
Q2'15
|
|
372
|
|
48,000
|
|
4,758
|
|
$1,049
|
|
90
|
Prior 4Q Avg.
|
|
306
|
|
49,000
|
|
8,951
|
|
$1,116
|
|
81
|
Q1'15
|
|
326
|
|
60,000
|
|
9,759
|
|
$1,383
|
|
83
|
Q4'14
|
|
335
|
|
44,000
|
|
5,262
|
|
$950
|
|
69
|
Q3'14
|
|
287
|
|
33,000
|
|
3,410
|
|
$694
|
|
79
|
Q2'14
|
|
275
|
|
59,000
|
|
17,374
|
|
$1,435
|
|
91
|
(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) Monthly recurring rent is defined as the average monthly contractual
rent during the term of the lease. It excludes estimates for
pass-through power and installation charges.
(e) Calculated on a CSF-weighted basis.
|
CyrusOne Inc.
|
New MRR Signed - Existing vs. New Customers
|
As of June 30, 2015
|
(Dollars in thousands)
|
(Unaudited)
|
|
|
|
New MRR(a) Signed ($000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2'13
|
|
Q3'13
|
|
Q4'13
|
|
Q1'14
|
|
Q2'14
|
|
Q3'14
|
|
Q4'14
|
|
Q1'15
|
|
Q2'15
|
Existing Customers
|
|
$
|
466
|
|
|
$
|
1,390
|
|
|
$
|
618
|
|
|
$
|
716
|
|
|
$
|
844
|
|
|
$
|
347
|
|
|
$
|
768
|
|
|
$
|
1,055
|
|
|
$
|
635
|
|
New Customers
|
|
$
|
426
|
|
|
$
|
474
|
|
|
$
|
362
|
|
|
$
|
790
|
|
|
$
|
591
|
|
|
$
|
347
|
|
|
$
|
182
|
|
|
$
|
328
|
|
|
$
|
414
|
|
Total
|
|
$
|
892
|
|
|
$
|
1,864
|
|
|
$
|
980
|
|
|
$
|
1,506
|
|
|
$
|
1,435
|
|
|
$
|
694
|
|
|
$
|
950
|
|
|
$
|
1,383
|
|
|
$
|
1,049
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% from Existing Customers
|
|
|
52
|
%
|
|
|
75
|
%
|
|
|
63
|
%
|
|
|
48
|
%
|
|
|
59
|
%
|
|
|
50
|
%
|
|
|
81
|
%
|
|
|
76
|
%
|
|
|
61
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Monthly recurring rent is defined as average monthly
contractual rent during the term of the lease. It excludes
estimates for pass-through power and installation charges.
|
|
CyrusOne Inc.
|
Customer Diversification((a))
|
As of June 30, 2015
|
(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
|
|
Information Technology
|
|
3
|
|
$
|
16,768,167
|
|
|
4.9
|
%
|
|
36.2
|
2
|
|
Energy
|
|
1
|
|
15,387,719
|
|
|
4.5
|
%
|
|
36.1
|
3
|
|
Telecommunication Services
|
|
2
|
|
15,226,014
|
|
|
4.5
|
%
|
|
35.1
|
4
|
|
Information Technology
|
|
1
|
|
14,608,719
|
|
|
4.3
|
%
|
|
45.0
|
5
|
|
Research and Consulting Services
|
|
3
|
|
14,010,584
|
|
|
4.1
|
%
|
|
28.7
|
6
|
|
Energy
|
|
5
|
|
13,233,348
|
|
|
3.9
|
%
|
|
23.1
|
7
|
|
Telecommunications (CBI)(e)
|
|
7
|
|
12,153,999
|
|
|
3.6
|
%
|
|
21.7
|
8
|
|
Industrials
|
|
3
|
|
8,687,906
|
|
|
2.6
|
%
|
|
19.5
|
9
|
|
Information Technology
|
|
2
|
|
7,971,772
|
|
|
2.3
|
%
|
|
24.8
|
10
|
|
Financials
|
|
1
|
|
6,600,225
|
|
|
1.9
|
%
|
|
59.0
|
11
|
|
Information Technology
|
|
1
|
|
6,564,853
|
|
|
1.9
|
%
|
|
113.0
|
12
|
|
Information Technology
|
|
1
|
|
6,306,022
|
|
|
1.9
|
%
|
|
5.9
|
13
|
|
Financials
|
|
8
|
|
5,651,666
|
|
|
1.7
|
%
|
|
59.8
|
14
|
|
Telecommunication Services
|
|
5
|
|
5,475,204
|
|
|
1.6
|
%
|
|
46.0
|
15
|
|
Energy
|
|
3
|
|
5,441,010
|
|
|
1.6
|
%
|
|
12.9
|
16
|
|
Energy
|
|
2
|
|
5,084,334
|
|
|
1.5
|
%
|
|
27.8
|
17
|
|
Consumer Staples
|
|
1
|
|
5,053,152
|
|
|
1.5
|
%
|
|
82.5
|
18
|
|
Information Technology
|
|
1
|
|
4,868,320
|
|
|
1.4
|
%
|
|
68.0
|
19
|
|
Energy
|
|
1
|
|
4,549,982
|
|
|
1.3
|
%
|
|
13.2
|
20
|
|
Information Technology
|
|
3
|
|
4,202,206
|
|
|
1.2
|
%
|
|
57.6
|
|
|
|
|
|
|
$
|
177,845,202
|
|
|
52.2
|
%
|
|
37.8
|
(a) Includes affiliates.
(b) Represents monthly contractual rent (defined as cash rent including
customer reimbursements for metered power) under existing customer
leases as of June 30, 2015, multiplied by 12. For the month of June
2015, our total portfolio annualized rent was $340.7 million, and
customer reimbursements were $41.5 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 April 1, 2013 through June 30, 2015, 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 June 30, 2015 was $350.2 million. Our annualized
effective rent was greater than our annualized rent as of June 30, 2015
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 June 30, 2015, which was
approximately $340.7 million.
(d) Weighted average based on customer's percentage of total annualized
rent expiring and is as of June 30, 2015, 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 2.5% of our annualized rent as of June 30,
2015. During the second quarter, a subsidiary of one of the customers
with contracts with CBTS had the contracts assigned to us.
|
CyrusOne Inc.
|
Lease Distribution
|
As of June 30, 2015
|
(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
|
|
510
|
|
|
74
|
%
|
|
102,346
|
|
|
5
|
%
|
|
$
|
42,828,735
|
|
|
13
|
%
|
1,000-2,499
|
|
66
|
|
|
9
|
%
|
|
104,560
|
|
|
5
|
%
|
|
21,400,298
|
|
|
6
|
%
|
2,500-4,999
|
|
39
|
|
|
6
|
%
|
|
139,884
|
|
|
7
|
%
|
|
28,055,610
|
|
|
8
|
%
|
5,000-9,999
|
|
28
|
|
|
4
|
%
|
|
208,318
|
|
|
10
|
%
|
|
50,794,258
|
|
|
15
|
%
|
10,000+
|
|
46
|
|
|
7
|
%
|
|
1,479,348
|
|
|
73
|
%
|
|
197,585,388
|
|
|
58
|
%
|
Total
|
|
689
|
|
|
100
|
%
|
|
2,034,456
|
|
|
100
|
%
|
|
$
|
340,664,289
|
|
|
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 June 30, 2015. 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 June 30, 2015, multiplied by 12. For the month of June
2015, customer reimbursements were $41.5 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 April 1, 2013 through June 30, 2015, 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
June 30, 2015 was $350.2 million. Our annualized effective rent was
greater than our annualized rent as of June 30, 2015 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 June 30, 2015
|
(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
|
|
|
402,476
|
|
|
17
|
%
|
|
|
|
|
|
|
|
|
Month-to-Month
|
208
|
|
|
23,871
|
|
|
1
|
%
|
|
$
|
5,809,309
|
|
|
2
|
%
|
|
$
|
6,013,918
|
|
|
2
|
%
|
2015
|
435
|
|
|
266,719
|
|
|
11
|
%
|
|
31,023,817
|
|
|
9
|
%
|
|
31,125,072
|
|
|
9
|
%
|
2016
|
772
|
|
|
238,810
|
|
|
10
|
%
|
|
63,177,418
|
|
|
18
|
%
|
|
63,980,541
|
|
|
17
|
%
|
2017
|
830
|
|
|
352,332
|
|
|
15
|
%
|
|
58,273,926
|
|
|
17
|
%
|
|
60,193,362
|
|
|
16
|
%
|
2018
|
542
|
|
|
299,489
|
|
|
12
|
%
|
|
73,151,523
|
|
|
21
|
%
|
|
75,872,942
|
|
|
21
|
%
|
2019
|
221
|
|
|
338,380
|
|
|
14
|
%
|
|
48,126,761
|
|
|
14
|
%
|
|
53,592,511
|
|
|
15
|
%
|
2020
|
150
|
|
|
249,268
|
|
|
10
|
%
|
|
26,965,414
|
|
|
8
|
%
|
|
31,097,587
|
|
|
9
|
%
|
2021
|
134
|
|
|
76,525
|
|
|
3
|
%
|
|
15,417,933
|
|
|
5
|
%
|
|
16,375,773
|
|
|
4
|
%
|
2022
|
11
|
|
|
33,167
|
|
|
1
|
%
|
|
3,647,627
|
|
|
1
|
%
|
|
3,929,246
|
|
|
1
|
%
|
2023
|
46
|
|
|
59,750
|
|
|
2
|
%
|
|
6,255,504
|
|
|
2
|
%
|
|
8,570,688
|
|
|
2
|
%
|
2024 - Thereafter
|
20
|
|
|
96,145
|
|
|
4
|
%
|
|
8,815,056
|
|
|
3
|
%
|
|
13,522,558
|
|
|
4
|
%
|
Total
|
3,369
|
|
|
2,436,932
|
|
|
100
|
%
|
|
$
|
340,664,288
|
|
|
100
|
%
|
|
$
|
364,274,198
|
|
|
100
|
%
|
(a) Leases that were auto-renewed prior to June 30, 2015 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 June 30, 2015, multiplied by 12. For the month of June
2015, our total portfolio annualized rent was $340.7 million, customer
reimbursements were $41.5 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 April 1, 2013 through June 30, 2015, 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
June 30, 2015 was $350.2 million. Our annualized effective rent was
greater than our annualized rent as of June 30, 2015 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 June 30, 2015, multiplied by 12.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150805005476/en/
[ Back To TMCnet.com's Homepage ]
|