[August 01, 2016] |
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CyrusOne Reports Second Quarter 2016 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 2016 earnings.
Highlights
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Second quarter net income of $9.1 million increased $15.6 million over
second quarter 2015
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Second quarter Adjusted EBITDA of $69.7 million increased 48% over
second quarter 2015
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Second quarter Normalized FFO per share of $0.67 increased 34% over
second quarter 2015
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Second quarter revenue of $130.1 million increased $41.0 million,
including $5.0 million from lease termination fees, or 46% over second
quarter 2015
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Leased a record 282,000 colocation square feet and 40 megawatts (MW)
in the second quarter totaling $58 million in annualized GAAP revenue,
including pre-leasing of 2 MW and over 75% of colocation square feet
under construction at recently acquired Chicago - Aurora I data center
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Backlog of $82 million in annualized GAAP revenue as of the end of the
second quarter, representing approximately $730 million in total
contract value
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Subsequent to the end of the quarter, leased 12 MW and purchased shell
for development of a fully pre-leased data center in Northern
Virginia, in addition to previously announced 40 acre land purchase in
this market
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Leases total $14 million in annualized GAAP revenue, increasing
backlog to $96 million
"This was the strongest leasing quarter in the Company's history, and we
believe it is also a record for the industry. These results reflect
continued strong operational and financial performance, and our ability
to deliver data centers at the fastest time to market has enabled our
hyper-scale customers to keep pace with their increasing capacity
requirements," said Gary Wojtaszek, president and chief executive
officer of CyrusOne. "The leases signed bring our annual revenue backlog
to $96 million, which would represent an 18% increase over our second
quarter revenue annualized run rate, positioning us very well for growth
in 2017 and beyond."
Second Quarter 2016 Financial Results
Net income was $9.1 million for the second quarter, compared to a net
loss of $6.5 million in the same period in 2015. Normalized Funds From
Operations (Normalized FFO)1 was $53.1 million for the second
quarter, compared to $33.4 million in the same period in 2015, an
increase of 59%. Net income per diluted common share2 was
$0.11 in the second quarter of 2016, compared to a net loss of $0.11 per
diluted common share or common share equivalent in the same period in
2015. Normalized FFO per diluted common share2 was $0.67 in
the second quarter of 2016, an increase of 34%.
Revenue was $130.1 million for the second quarter, compared to $89.1
million for the same period in 2015, an increase of 46%. The increase in
revenue was driven by a 44% increase in leased colocation square feet,
additional interconnection services, and lease termination fees ($5.0
million of the increase). Net operating income (NOI)3 was
$85.3 million for the second quarter, compared to $56.3 million in the
same period in 2015, an increase of 52%. Adjusted EBITDA4 was
$69.7 million for the second quarter, compared to $47.1 million in the
same period in 2015, an increase of 48%. The Adjusted EBITDA margin of
53.6% in the second quarter increased from 52.9% in the same period in
2015.
Leasing Activity
CyrusOne leased approximately 282,000 colocation square feet (CSF) and
40 MW of power in the second quarter, representing $4.9 million in
monthly recurring rent inclusive of the monthly impact of installation
charges, or approximately $58 million in annualized contracted GAAP
revenue5 excluding estimates for pass-through power,
increasing to $72 million including leases signed subsequent to the end
of the quarter. The Company added one new Fortune 10006
customer in the second quarter, bringing the total to 177 customers in
the Fortune 1000 and 952 customers in total as of June 30, 2016. The
weighted average lease term of the new leases based on square footage is
112 months (9.3 years), increasing the weighted average remaining lease
term of CyrusOne's portfolio to 53 months (taking into account the
impact of the backlog), nearly double the weighted average remaining
lease term of the portfolio at the time of the Company's initial public
offering. Also in the quarter, the Company pre-leased 2 MW and over 75%
of CSF under construction at the recently acquired Chicago - Aurora I
data center.
Recurring rent churn7 for the second quarter was 2.7%,
including 1.2% initiated by CyrusOne to move a customer out of a
facility in order to lease the space to two Fortune 500 customers. This
churn compares to 0.6% for the same period in 2015.
Portfolio Utilization and Development
In the second quarter, the Company completed construction on
approximately 395,000 CSF and 61 MW of power capacity in Northern
Virginia, San Antonio, Phoenix, Dallas, and Houston, increasing total
CSF across 35 data centers to approximately 2,006,000 CSF. This
represents an increase of 652,000 CSF, or 48%, from June 30, 2015. CSF
utilization8 as of the end of the second quarter was 92% for
stabilized properties9 and 84% overall. The Company's
Massively Modular® design approach has enabled it to consistently
deliver development yields10 ranging from 16% to 19% across
the portfolio. CyrusOne has development projects underway in Northern
Virginia, San Antonio, Phoenix and Chicago that will add approximately
259,000 CSF and 50 MW of power capacity. The Company has an additional
851,000 square feet of powered shell available for development as well
as 230 acres of land across its markets.
Balance Sheet and Liquidity
As of June 30, 2016, the Company had $1,113.9 million of long term debt11,
cash and cash equivalents of $13.2 million, and $557.9 million available
under its unsecured revolving credit facility. Net debt11 was
$1,111.6 million as of June 30, 2016, approximately 20% of the Company's
total enterprise value or 4.0x Adjusted EBITDA for the last quarter
annualized. Available liquidity12 was $571.1 million as of
June 30, 2016.
Dividend
On May 4, 2016, the Company announced a dividend of $0.38 per share of
common stock for the second quarter of 2016. The dividend was paid on
July 15, 2016, to stockholders of record at the close of business on
June 24, 2016.
Additionally, today the Company is announcing a dividend of $0.38 per
share of common stock for the third quarter of 2016. The dividend will
be paid on October 14, 2016, to stockholders of record at the close of
business on September 30, 2016.
Guidance
CyrusOne is increasing the lower end of its guidance range for full year
2016 Normalized FFO per diluted common share and increasing its guidance
for full year 2016 Capital Expenditures. The Company is reaffirming its
guidance for Revenue and Adjusted EBITDA. 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.
CyrusOne does not provide reconciliations for the non-GAAP financial
measures included in the annual guidance provided below due to the
inherent difficulty in forecasting and quantifying certain amounts that
are necessary for such reconciliations, including net income (loss) and
adjustments that could be made for transaction and acquisition
integration costs, legal claim costs, lease exit costs, asset
impairments and loss on disposals and other charges in its
reconciliation of historic numbers, the amount of which, based on
historical experience, could be significant.
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Category
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Previous 2016 Guidance
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Revised 2016 Guidance
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Total Revenue
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$520 - 530 million
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$520 - 530 million
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Base Revenue
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$470 - 475 million
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$470 - 475 million
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Metered Power Reimbursements
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$50 - 55 million
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$50 - 55 million
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Adjusted EBITDA
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$270 - 280 million
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$270 - 280 million
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Normalized FFO per diluted common share
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$2.48 - 2.58
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$2.50 - 2.58
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Capital Expenditures
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$380 - 405 million
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$635 - 655 million
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Development
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$375 - 396 million
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$630 - 646 million
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Recurring
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$5 - 9 million
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$5 - 9 million
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Upcoming Conferences and Events
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Cowen and Company 2nd Annual Communications Infrastructure
Summit on August 8-9 in Boulder, CO
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Bank of America Merrill Lynch Global Real Estate Conference on
September 13-14 in New York City
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24th Annual Deutsche Bank Leveraged Finance Conference on September
26-28 in Scottsdale, AZ
Conference Call Details
CyrusOne will host a conference call on August 2, 2016, at 11:00 AM
Eastern Time (10:00 AM Central Time) to discuss its results for the
second quarter of 2016. 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 1-844-492-3731, and the
international dial-in number is 1-412-542-4121. A replay will be
available one hour after the conclusion of the earnings call on August
2, 2016, through August 16, 2016. 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 10088831.
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, 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, and Adjusted
NOI 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, and Adjusted EBITDA should be considered only as
supplements to net income as measures of our performance. FFO,
Normalized FFO, NOI, Adjusted NOI, 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 pay dividends.
These measures also should not be used as substitutes for cash flow from
operating activities computed in accordance with U.S. GAAP.
1Normalized Funds From Operations (Normalized FFO) is defined
as Funds From Operations (FFO) plus amortization of customer
relationship intangibles, transaction and acquisition integration costs,
legal claim costs and lease exit costs, and other special items
including loss on extinguishment of debt and severance and management
transition costs, as appropriate. FFO is net (loss) income computed in
accordance with U.S. GAAP before real estate depreciation and
amortization and Asset impairments and loss on disposal. 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. The Company believes its
Normalized FFO calculation provides a comparable measure to that used by
others in the industry. However, other REITs may not calculate
Normalized FFO in the same manner. Accordingly, the Company's Normalized
FFO may not be comparable to others.
2Net income / (loss) per diluted common share and Normalized
FFO per diluted common share are defined as net income / (loss) and
Normalized FFO, respectively, divided by the average common shares
outstanding for the quarter, which were 78,999,028 for the second
quarter of 2016.
3Net 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.
4Adjusted EBITDA is defined as net income (loss) as defined
by U.S. GAAP plus interest expense, income tax (benefit) expense,
depreciation and amortization, stock-based compensation, transaction and
integration costs, severance and management transition costs, asset
impairments and (gain) loss on disposals, lease exit costs, legal claim
costs 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.
5Annualized GAAP revenue is equal to monthly recurring rent,
defined as average monthly contractual rent during the term of the lease
plus the monthly impact of installation charges, multiplied by 12. It
can be shown both inclusive and exclusive of the Company's estimate of
customer reimbursements for metered power.
6Fortune 1000 customers include subsidiaries whose ultimate
parent is a Fortune 1000 company or a foreign or private company of
equivalent size.
7Recurring 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.
8Utilization 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.
9Stabilized properties include data halls that have been in
service for at least 24 months or are at least 85% utilized.
10Development yield is calculated by dividing annualized Net
Operating Income for the most recent quarter by total investment in real
estate (before accumulated depreciation), less construction in progress.
11Long term debt and net debt exclude adjustments for
deferred financing costs. Net 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.
12Liquidity 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 950 customers,
including nine of the Fortune 20 and 177 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 35 data
centers worldwide.
Company Profile
CyrusOne (NASDAQ: CONE) specializes in highly reliable enterprise-class,
carrier-neutral data center properties. The Company provides
mission-critical data center facilities that protect and ensure the
continued operation of IT infrastructure for more than 950 customers,
including nine of the Fortune 20 and 177 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 35 data
centers worldwide.
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Best-in-Class Sales Force
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Flexible Solutions that Scale as Customers Grow
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Massively Modular® Engineering with Data Hall Builds in 12-16 Weeks
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Focus on Operational Excellence and Superior Customer Service
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Proven Leading-Edge Technology Delivering Power Densities up to 900
Watts per Square Foot
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National IX Replicates Enterprise Data Center Architecture
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Corporate Headquarters
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Senior Management
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1649 West Frankford Road
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Gary Wojtaszek, President and CEO
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Carrollton, Texas 75007
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Greg Andrews, Chief Financial Officer
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Phone: (972) 350-0060
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Kevin Timmons, Chief Technology Officer
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Website: www.cyrusone.com
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Tesh Durvasula, Chief Commercial Officer
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Scott Brueggeman, Chief Marketing Officer
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Robert Jackson, EVP General Counsel & Secretary
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John Hatem, EVP Design, Construction & Operations
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Kellie Teal-Guess, EVP & Chief People Officer
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Amitabh Rai, Senior VP & Chief Accounting Officer
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Analyst Coverage
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Firm
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Analyst
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Phone Number
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Bank of America Merrill Lynch
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Michael J. Funk
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(646) 855-5664
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Barclays
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Amir Rozwadowski
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(212) 526-4043
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Burke & Quick Partners
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Frederick W. Moran
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(561) 504-0936
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Citi
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Emmanuel Korchman
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(212) 816-1382
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Cowen and Company
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Colby Synesael
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(646) 562-1355
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Deutsche Bank
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Vin Chao
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(212) 250-6799
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Evercore ISI
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Jonathan Schildkraut
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(212) 497-0864
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Gabelli & Company
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Sergey Dluzhevskiy
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(914) 921-8355
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Jefferies
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Jonathan Petersen
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(212) 284-1705
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J.P. Morgan
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Richard Choe
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(212) 622-6708
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KeyBanc Capital Markets
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Jordan Sadler
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(917) 368-2280
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Morgan Stanley
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Simon Flannery
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(212) 761-6432
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RBC Capital Markets
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Jonathan Atkin
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(415) 633-8589
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Raymond James
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Frank G. Louthan IV
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(404) 442-5867
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Stephens
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Barry McCarver
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(501) 377-8131
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Stifel
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Matthew S. Heinz, CFA
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(443) 224-1382
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SunTrust Robinson Humphrey
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Greg Miller
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(212) 303-4169
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UBS
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John C. Hodulik, CFA
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(212) 713-4226
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Wells Fargo
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Eric Luebchow
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(312) 630-2386
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CyrusOne Inc.
Consolidated Statements of Operations
(Dollars in millions, except per share amounts)
(Unaudited)
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Three Months
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Six Months
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Ended June 30,
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Change
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Ended June 30,
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Change
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2016
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2015
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$
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%
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2016
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2015
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$
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%
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Revenue
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$
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130.1
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$
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89.1
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$
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41.0
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46
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%
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$
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247.9
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$
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174.8
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$
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73.1
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42
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%
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Costs and expenses:
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Property operating expenses
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44.8
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32.8
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12.0
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37
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%
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85.1
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65.1
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20.0
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31
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%
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Sales and marketing
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4.2
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2.8
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1.4
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50
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%
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8.2
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5.7
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2.5
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44
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%
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General and administrative
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14.9
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9.9
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5.0
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51
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%
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28.9
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19.0
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9.9
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52
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%
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Depreciation and amortization
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44.7
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31.4
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13.3
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42
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%
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84.0
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62.5
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21.5
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34
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%
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Transaction and acquisition integration costs
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0.4
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9.6
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(9.2
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(96
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)%
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2.7
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9.7
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(7.0
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(72
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)%
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Asset impairments and loss on disposal
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-
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n/m
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-
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8.6
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(8.6
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)
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(100
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)%
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Total costs and expenses
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109.0
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86.5
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22.5
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26
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%
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208.9
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170.6
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38.3
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22
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%
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Operating income
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21.1
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2.6
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18.5
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n/m
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39.0
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4.2
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34.8
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n/m
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Interest expense
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11.5
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8.7
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2.8
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32
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%
|
|
23.6
|
|
|
17.1
|
|
|
6.5
|
|
|
38
|
%
|
Net income (loss) before income taxes
|
|
|
9.6
|
|
|
(6.1
|
)
|
|
15.7
|
|
|
n/m
|
|
15.4
|
|
|
(12.9
|
)
|
|
28.3
|
|
|
n/m
|
Income tax expense
|
|
|
(0.5
|
)
|
|
(0.4
|
)
|
|
(0.1
|
)
|
|
25
|
%
|
|
(0.7
|
)
|
|
(0.8
|
)
|
|
0.1
|
|
|
(13
|
)%
|
Net income (loss)
|
|
|
9.1
|
|
|
(6.5
|
)
|
|
15.6
|
|
|
n/m
|
|
14.7
|
|
|
(13.7
|
)
|
|
28.4
|
|
|
n/m
|
Noncontrolling interest in net income (loss)
|
|
|
-
|
|
|
(1.0
|
)
|
|
1.0
|
|
|
(100
|
)%
|
|
-
|
|
|
(3.9
|
)
|
|
3.9
|
|
|
(100
|
)%
|
Net income (loss) attributed to common stockholders
|
|
|
$
|
9.1
|
|
|
$
|
(5.5
|
)
|
|
$
|
14.6
|
|
|
n/m
|
|
$
|
14.7
|
|
|
$
|
(9.8
|
)
|
|
$
|
24.5
|
|
|
n/m
|
Income (loss) per common share - basic and diluted
|
|
|
$
|
0.11
|
|
|
$
|
(0.11
|
)
|
|
$
|
0.22
|
|
|
n/m
|
|
$
|
0.19
|
|
|
$
|
(0.23
|
)
|
|
$
|
0.42
|
|
|
n/m
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Consolidated Balance Sheets
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
Change
|
|
|
|
2016
|
|
2015
|
|
$
|
|
%
|
Assets
|
|
|
|
|
|
|
|
|
|
Investment in real estate:
|
|
|
|
|
|
|
|
|
|
Land
|
|
|
$
|
122.9
|
|
|
$
|
93.0
|
|
|
$
|
29.9
|
|
|
32
|
%
|
Buildings and improvements
|
|
|
995.2
|
|
|
905.3
|
|
|
89.9
|
|
|
10
|
%
|
Equipment
|
|
|
917.8
|
|
|
598.2
|
|
|
319.6
|
|
|
53
|
%
|
Construction in progress
|
|
|
178.9
|
|
|
231.1
|
|
|
(52.2
|
)
|
|
(23
|
)%
|
Subtotal
|
|
|
2,214.8
|
|
|
1,827.6
|
|
|
387.2
|
|
|
21
|
%
|
Accumulated depreciation
|
|
|
(503.2
|
)
|
|
(435.6
|
)
|
|
(67.6
|
)
|
|
16
|
%
|
Net investment in real estate
|
|
|
1,711.6
|
|
|
1,392.0
|
|
|
319.6
|
|
|
23
|
%
|
Cash and cash equivalents
|
|
|
13.2
|
|
|
14.3
|
|
|
(1.1
|
)
|
|
(8
|
)%
|
Rent and other receivables
|
|
|
66.4
|
|
|
76.1
|
|
|
(9.7
|
)
|
|
(13
|
)%
|
Restricted cash
|
|
|
0.3
|
|
|
1.5
|
|
|
(1.2
|
)
|
|
(80
|
)%
|
Goodwill
|
|
|
453.4
|
|
|
453.4
|
|
|
-
|
|
|
-
|
%
|
Intangible assets, net
|
|
|
160.6
|
|
|
170.3
|
|
|
(9.7
|
)
|
|
(6
|
)%
|
Other assets
|
|
|
105.8
|
|
|
88.0
|
|
|
17.8
|
|
|
20
|
%
|
Total assets
|
|
|
$
|
2,511.3
|
|
|
$
|
2,195.6
|
|
|
$
|
315.7
|
|
|
14
|
%
|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
$
|
163.7
|
|
|
$
|
136.6
|
|
|
$
|
27.1
|
|
|
20
|
%
|
Deferred revenue
|
|
|
71.7
|
|
|
78.7
|
|
|
(7.0
|
)
|
|
(9
|
)%
|
Capital lease obligations
|
|
|
10.9
|
|
|
12.2
|
|
|
(1.3
|
)
|
|
(11
|
)%
|
Long-term debt
|
|
|
1,096.2
|
|
|
996.5
|
|
|
99.7
|
|
|
10
|
%
|
Lease financing arrangements
|
|
|
144.3
|
|
|
150.0
|
|
|
(5.7
|
)
|
|
(4
|
)%
|
Total liabilities
|
|
|
1,486.8
|
|
|
1,374.0
|
|
|
112.8
|
|
|
8
|
%
|
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
79,619,202 and 72,556,334 shares issued and outstanding at June 30,
2016 and December 31, 2015, respectively
|
|
|
0.8
|
|
|
0.7
|
|
|
0.1
|
|
|
14
|
%
|
Additional paid in capital
|
|
|
1,215.7
|
|
|
967.2
|
|
|
248.5
|
|
|
26
|
%
|
Accumulated deficit
|
|
|
(191.5
|
)
|
|
(145.9
|
)
|
|
(45.6
|
)
|
|
31
|
%
|
Accumulated other comprehensive loss
|
|
|
(0.5
|
)
|
|
(0.4
|
)
|
|
(0.1
|
)
|
|
25
|
%
|
Total shareholders' equity
|
|
|
1,024.5
|
|
|
821.6
|
|
|
202.9
|
|
|
25
|
%
|
Total liabilities and shareholders' equity
|
|
|
$
|
2,511.3
|
|
|
$
|
2,195.6
|
|
|
$
|
315.7
|
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
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,
|
|
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Base revenue
|
|
|
$
|
118.2
|
|
|
$
|
106.5
|
|
|
$
|
101.2
|
|
|
$
|
98.7
|
|
|
$
|
78.8
|
|
Metered Power reimbursements
|
|
|
11.9
|
|
|
11.3
|
|
|
12.1
|
|
|
12.5
|
|
|
10.3
|
|
Total revenue
|
|
|
130.1
|
|
|
117.8
|
|
|
113.3
|
|
|
111.2
|
|
|
89.1
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses
|
|
|
44.8
|
|
|
40.3
|
|
|
41.4
|
|
|
42.2
|
|
|
32.8
|
|
Sales and marketing
|
|
|
4.2
|
|
|
4.0
|
|
|
3.2
|
|
|
3.2
|
|
|
2.8
|
|
General and administrative
|
|
|
14.9
|
|
|
14.0
|
|
|
15.1
|
|
|
12.5
|
|
|
9.9
|
|
Depreciation and amortization
|
|
|
44.7
|
|
|
39.3
|
|
|
39.9
|
|
|
39.1
|
|
|
31.4
|
|
Transaction and acquisition integration costs
|
|
|
0.4
|
|
|
2.3
|
|
|
2.6
|
|
|
1.8
|
|
|
9.6
|
|
Asset impairments and loss on disposal
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
4.9
|
|
|
-
|
|
Total costs and expenses
|
|
|
109.0
|
|
|
99.9
|
|
|
102.2
|
|
|
103.7
|
|
|
86.5
|
|
Operating income
|
|
|
21.1
|
|
|
17.9
|
|
|
11.1
|
|
|
7.5
|
|
|
2.6
|
|
Interest expense
|
|
|
11.5
|
|
|
12.1
|
|
|
12.0
|
|
|
12.1
|
|
|
8.7
|
|
Net income (loss) before income taxes
|
|
|
9.6
|
|
|
5.8
|
|
|
(0.9
|
)
|
|
(4.6
|
)
|
|
(6.1
|
)
|
Income tax expense
|
|
|
(0.5
|
)
|
|
(0.2
|
)
|
|
(0.3
|
)
|
|
(0.7
|
)
|
|
(0.4
|
)
|
Net income (loss) from continuing operations
|
|
|
9.1
|
|
|
5.6
|
|
|
(1.2
|
)
|
|
(5.3
|
)
|
|
(6.5
|
)
|
Noncontrolling interest in net loss
|
|
|
-
|
|
|
-
|
|
|
(0.2
|
)
|
|
(0.7
|
)
|
|
(1.0
|
)
|
Net income (loss) attributed to common stockholders
|
|
|
$
|
9.1
|
|
|
$
|
5.6
|
|
|
$
|
(1.0
|
)
|
|
$
|
(4.6
|
)
|
|
$
|
(5.5
|
)
|
Income (loss) per common share - basic and diluted
|
|
|
$
|
0.11
|
|
|
$
|
0.07
|
|
|
$
|
(0.02
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
(0.11
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Consolidated Balance Sheets
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Investment in real estate:
|
|
|
|
|
|
|
|
|
|
|
|
Land
|
|
|
$
|
122.9
|
|
|
$
|
98.8
|
|
|
$
|
93.0
|
|
|
$
|
93.0
|
|
|
$
|
93.0
|
|
Buildings and improvements
|
|
|
995.2
|
|
|
942.0
|
|
|
905.3
|
|
|
897.7
|
|
|
824.2
|
|
Equipment
|
|
|
917.8
|
|
|
715.6
|
|
|
598.2
|
|
|
555.6
|
|
|
423.4
|
|
Construction in progress
|
|
|
178.9
|
|
|
327.7
|
|
|
231.1
|
|
|
187.1
|
|
|
125.8
|
|
Subtotal
|
|
|
2,214.8
|
|
|
2,084.1
|
|
|
1,827.6
|
|
|
1,733.4
|
|
|
1,466.4
|
|
Accumulated depreciation
|
|
|
(503.2
|
)
|
|
(467.2
|
)
|
|
(435.6
|
)
|
|
(404.4
|
)
|
|
(375.4
|
)
|
Net investment in real estate
|
|
|
1,711.6
|
|
|
1,616.9
|
|
|
1,392.0
|
|
|
1,329.0
|
|
|
1,091.0
|
|
Cash and cash equivalents
|
|
|
13.2
|
|
|
87.7
|
|
|
14.3
|
|
|
39.8
|
|
|
413.5
|
|
Rent and other receivables
|
|
|
66.4
|
|
|
67.1
|
|
|
76.1
|
|
|
74.5
|
|
|
56.3
|
|
Restricted cash
|
|
|
0.3
|
|
|
0.7
|
|
|
1.5
|
|
|
7.1
|
|
|
-
|
|
Goodwill
|
|
|
453.4
|
|
|
453.4
|
|
|
453.4
|
|
|
453.4
|
|
|
276.2
|
|
Intangible assets, net
|
|
|
160.6
|
|
|
165.5
|
|
|
170.3
|
|
|
175.7
|
|
|
61.6
|
|
Due from affiliates
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1.3
|
|
|
1.7
|
|
Other assets
|
|
|
105.8
|
|
|
92.2
|
|
|
88.0
|
|
|
82.2
|
|
|
74.2
|
|
Total assets
|
|
|
$
|
2,511.3
|
|
|
$
|
2,483.5
|
|
|
$
|
2,195.6
|
|
|
$
|
2,163.0
|
|
|
$
|
1,974.5
|
|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
$
|
163.7
|
|
|
$
|
196.2
|
|
|
$
|
136.6
|
|
|
$
|
116.3
|
|
|
$
|
90.0
|
|
Deferred revenue
|
|
|
71.7
|
|
|
76.4
|
|
|
78.7
|
|
|
74.1
|
|
|
66.5
|
|
Due to affiliates
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2.7
|
|
|
174.9
|
|
Capital lease obligations
|
|
|
10.9
|
|
|
11.5
|
|
|
12.2
|
|
|
12.8
|
|
|
12.1
|
|
Long-term debt
|
|
|
1,096.2
|
|
|
1,010.3
|
|
|
996.5
|
|
|
964.1
|
|
|
712.6
|
|
Lease financing arrangements
|
|
|
144.3
|
|
|
147.0
|
|
|
150.0
|
|
|
151.9
|
|
|
52.8
|
|
Total liabilities
|
|
|
1,486.8
|
|
|
1,441.4
|
|
|
1,374.0
|
|
|
1,321.9
|
|
|
1,108.9
|
|
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
79,619,202 and 72,556,334 shares issued and outstanding at June 30,
2016 and December 31, 2015, respectively
|
|
|
0.8
|
|
|
0.8
|
|
|
0.7
|
|
|
0.6
|
|
|
0.6
|
|
Additional paid in capital
|
|
|
1,215.7
|
|
|
1,212.0
|
|
|
967.2
|
|
|
912.3
|
|
|
908.3
|
|
Accumulated deficit
|
|
|
(191.5
|
)
|
|
(170.3
|
)
|
|
(145.9
|
)
|
|
(124.3
|
)
|
|
(98.9
|
)
|
Accumulated other comprehensive loss
|
|
|
(0.5
|
)
|
|
(0.4
|
)
|
|
(0.4
|
)
|
|
(0.7
|
)
|
|
(0.3
|
)
|
Total shareholders' equity
|
|
|
1,024.5
|
|
|
1,042.1
|
|
|
821.6
|
|
|
787.9
|
|
|
809.7
|
|
Noncontrolling interest
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
53.2
|
|
|
55.9
|
|
Total shareholders' equity
|
|
|
1,024.5
|
|
|
1,042.1
|
|
|
821.6
|
|
|
841.1
|
|
|
865.6
|
|
Total liabilities and shareholders' equity
|
|
|
$
|
2,511.3
|
|
|
$
|
2,483.5
|
|
|
$
|
2,195.6
|
|
|
$
|
2,163.0
|
|
|
$
|
1,974.5
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Consolidated Statements of Cash Flow
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2016
|
|
Six Months Ended June 30, 2015
|
|
Three Months Ended June 30, 2016
|
|
Three Months Ended June 30, 2015
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
14.7
|
|
|
$
|
(13.7
|
)
|
|
$
|
9.1
|
|
|
$
|
(6.5
|
)
|
Adjustments to reconcile net loss to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
84.0
|
|
|
62.5
|
|
|
44.7
|
|
|
31.4
|
|
Noncash interest expense
|
|
|
1.5
|
|
|
1.4
|
|
|
0.6
|
|
|
0.7
|
|
Stock-based compensation expense
|
|
|
6.2
|
|
|
6.2
|
|
|
3.2
|
|
|
3.2
|
|
Provision for bad debt
|
|
|
0.7
|
|
|
0.2
|
|
|
0.6
|
|
|
0.2
|
|
Asset impairments and loss on disposal
|
|
|
-
|
|
|
8.6
|
|
|
-
|
|
|
-
|
|
Change in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Rent receivables and other assets
|
|
|
(8.9
|
)
|
|
(7.8
|
)
|
|
(15.1
|
)
|
|
(9.6
|
)
|
Accounts payable and accrued expenses
|
|
|
1.7
|
|
|
5.4
|
|
|
1.7
|
|
|
8.3
|
|
Deferred revenues
|
|
|
(7.0
|
)
|
|
0.8
|
|
|
(4.7
|
)
|
|
1.0
|
|
Due to affiliates
|
|
|
-
|
|
|
(1.9
|
)
|
|
-
|
|
|
(0.3
|
)
|
Net cash provided by operating activities
|
|
|
92.9
|
|
|
61.7
|
|
|
40.1
|
|
|
28.4
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
Capital expenditures - purchased of fixed assets
|
|
|
(131.1
|
)
|
|
(17.3
|
)
|
|
-
|
|
|
-
|
|
Capital expenditures - other development
|
|
|
(247.1
|
)
|
|
(74.2
|
)
|
|
(168.6
|
)
|
|
(42.3
|
)
|
Changes in restricted cash
|
|
|
1.2
|
|
|
-
|
|
|
0.4
|
|
|
-
|
|
Net cash used in investing activities
|
|
|
(377.0
|
)
|
|
(91.5
|
)
|
|
(168.2
|
)
|
|
(42.3
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
Issuance of common stock
|
|
|
256.5
|
|
|
799.3
|
|
|
0.5
|
|
|
799.3
|
|
Stock issuance costs
|
|
|
(0.5
|
)
|
|
(0.6
|
)
|
|
(0.5
|
)
|
|
(0.6
|
)
|
Acquisition of operating partnership units
|
|
|
-
|
|
|
(426.0
|
)
|
|
-
|
|
|
(426.0
|
)
|
Dividends paid
|
|
|
(52.9
|
)
|
|
(33.8
|
)
|
|
(30.1
|
)
|
|
(20.3
|
)
|
Borrowings from credit facility
|
|
|
415.0
|
|
|
70.0
|
|
|
95.0
|
|
|
50.0
|
|
Payments on credit facility
|
|
|
(315.0
|
)
|
|
-
|
|
|
(10.0
|
)
|
|
-
|
|
Payments on capital leases and leasing financing arrangements
|
|
|
(4.4
|
)
|
|
(2.1
|
)
|
|
(1.3
|
)
|
|
(1.0
|
)
|
Debt issuance costs
|
|
|
(2.1
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
Tax payments upon exercise of equity awards
|
|
|
(13.6
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
Net cash provided by financing activities
|
|
|
283.0
|
|
|
406.8
|
|
|
53.6
|
|
|
401.4
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
(1.1
|
)
|
|
377.0
|
|
|
(74.5
|
)
|
|
387.5
|
|
Cash and cash equivalents at beginning of period
|
|
|
14.3
|
|
|
36.5
|
|
|
87.7
|
|
|
26.0
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
13.2
|
|
|
$
|
413.5
|
|
|
$
|
13.2
|
|
|
$
|
413.5
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures of cash flow information
|
|
|
|
|
|
|
|
|
|
Cash paid for interest
|
|
|
$
|
27.2
|
|
|
$
|
18.5
|
|
|
$
|
21.0
|
|
|
$
|
15.7
|
|
Cash paid for income taxes
|
|
|
1.2
|
|
|
1.9
|
|
|
1.1
|
|
|
0.8
|
|
Supplemental disclosures of noncash investing and financing
activities
|
|
|
|
|
|
|
|
|
|
Capitalized interest
|
|
|
5.0
|
|
|
2.5
|
|
|
2.9
|
|
|
1.2
|
|
Acquisition and development of properties in accounts payable and
other liabilities
|
|
|
77.4
|
|
|
27.2
|
|
|
77.4
|
|
|
27.2
|
|
Dividends payable
|
|
|
31.8
|
|
|
25.3
|
|
|
31.8
|
|
|
25.3
|
|
Forward contract for purchase of operating partnership units
|
|
|
-
|
|
|
170.3
|
|
|
-
|
|
|
170.3
|
|
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,
|
|
|
|
2016
|
|
2015
|
|
$
|
|
%
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
Net Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
247.9
|
|
|
$
|
174.8
|
|
|
$
|
73.1
|
|
|
42
|
%
|
|
$
|
130.1
|
|
|
$
|
117.8
|
|
|
$
|
113.3
|
|
|
$
|
111.2
|
|
|
$
|
89.1
|
|
Property operating expenses
|
|
|
85.1
|
|
|
65.1
|
|
|
20.0
|
|
|
31
|
%
|
|
44.8
|
|
|
40.3
|
|
|
41.4
|
|
|
42.2
|
|
|
32.8
|
|
Net Operating Income (NOI)
|
|
|
162.8
|
|
|
109.7
|
|
|
53.1
|
|
|
48
|
%
|
|
85.3
|
|
|
77.5
|
|
|
71.9
|
|
|
69.0
|
|
|
56.3
|
|
Add Back: Lease exit costs
|
|
|
-
|
|
|
0.7
|
|
|
(0.7
|
)
|
|
n/m
|
|
-
|
|
|
-
|
|
|
0.3
|
|
|
0.4
|
|
|
-
|
|
Adjusted Net Operating Income (Adjusted NOI)
|
|
|
$
|
162.8
|
|
|
$
|
110.4
|
|
|
$
|
52.4
|
|
|
47
|
%
|
|
$
|
85.3
|
|
|
$
|
77.5
|
|
|
$
|
72.2
|
|
|
$
|
69.4
|
|
|
$
|
56.3
|
|
Adjusted NOI as a % of Revenue
|
|
|
65.7
|
%
|
|
63.2
|
%
|
|
|
|
|
|
65.6
|
%
|
|
65.8
|
%
|
|
63.7
|
%
|
|
62.4
|
%
|
|
63.2
|
%
|
Reconciliation of Net (Loss) Income to Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
14.7
|
|
|
$
|
(13.7
|
)
|
|
$
|
28.4
|
|
|
n/m
|
|
$
|
9.1
|
|
|
$
|
5.6
|
|
|
$
|
(1.2
|
)
|
|
$
|
(5.3
|
)
|
|
$
|
(6.5
|
)
|
Interest expense
|
|
|
23.6
|
|
|
17.1
|
|
|
6.5
|
|
|
38
|
%
|
|
11.5
|
|
|
12.1
|
|
|
12.0
|
|
|
12.1
|
|
|
8.7
|
|
Income tax expense
|
|
|
0.7
|
|
|
0.8
|
|
|
(0.1
|
)
|
|
(13
|
)%
|
|
0.5
|
|
|
0.2
|
|
|
0.3
|
|
|
0.7
|
|
|
0.4
|
|
Depreciation and amortization
|
|
|
84.0
|
|
|
62.5
|
|
|
21.5
|
|
|
34
|
%
|
|
44.7
|
|
|
39.3
|
|
|
39.9
|
|
|
39.1
|
|
|
31.4
|
|
Transaction and acquisition integration costs
|
|
|
2.7
|
|
|
9.7
|
|
|
(7.0
|
)
|
|
(72
|
)%
|
|
0.4
|
|
|
2.3
|
|
|
2.6
|
|
|
1.8
|
|
|
9.6
|
|
Legal claim costs
|
|
|
0.5
|
|
|
0.3
|
|
|
0.2
|
|
|
n/m
|
|
0.3
|
|
|
0.2
|
|
|
0.1
|
|
|
-
|
|
|
0.3
|
|
Stock-based compensation
|
|
|
6.2
|
|
|
6.2
|
|
|
-
|
|
|
n/m
|
|
3.2
|
|
|
3.0
|
|
|
2.4
|
|
|
3.4
|
|
|
3.2
|
|
Severance and management transition costs
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
n/m
|
|
-
|
|
|
-
|
|
|
4.1
|
|
|
1.9
|
|
|
-
|
|
Lease exit costs
|
|
|
-
|
|
|
0.7
|
|
|
(0.7
|
)
|
|
n/m
|
|
-
|
|
|
-
|
|
|
0.3
|
|
|
0.4
|
|
|
-
|
|
Asset impairments and loss on disposals
|
|
|
-
|
|
|
8.6
|
|
|
(8.6
|
)
|
|
n/m
|
|
-
|
|
|
-
|
|
|
-
|
|
|
4.9
|
|
|
-
|
|
Adjusted EBITDA
|
|
|
$
|
132.4
|
|
|
$
|
92.2
|
|
|
$
|
40.2
|
|
|
44
|
%
|
|
$
|
69.7
|
|
|
$
|
62.7
|
|
|
$
|
60.5
|
|
|
$
|
59.0
|
|
|
$
|
47.1
|
|
Adjusted EBITDA as a % of Revenue
|
|
|
53.4
|
%
|
|
52.7
|
%
|
|
|
|
|
|
53.6
|
%
|
|
53.2
|
%
|
|
53.4
|
%
|
|
53.1
|
%
|
|
52.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Reconciliation of Revenue to Net Operating Income to Net Income
(Loss)
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
June 30,
|
|
Change
|
|
June 30,
|
|
Change
|
|
2016
|
|
2015
|
|
$
|
|
%
|
|
2016
|
|
2015
|
|
$
|
|
%
|
Revenue
|
|
|
$
|
130.1
|
|
|
$
|
89.1
|
|
|
$
|
41.0
|
|
|
46
|
%
|
|
$
|
247.9
|
|
|
$
|
174.8
|
|
|
$
|
73.1
|
|
|
42
|
%
|
Property operating expenses
|
|
|
44.8
|
|
|
32.8
|
|
|
12.0
|
|
|
37
|
%
|
|
85.1
|
|
|
65.1
|
|
|
20.0
|
|
|
31
|
%
|
Net Operating Income
|
|
|
$
|
85.3
|
|
|
$
|
56.3
|
|
|
$
|
29.0
|
|
|
52
|
%
|
|
$
|
162.8
|
|
|
$
|
109.7
|
|
|
$
|
53.1
|
|
|
48
|
%
|
Sales and marketing
|
|
|
4.2
|
|
|
2.8
|
|
|
1.4
|
|
|
50
|
%
|
|
8.2
|
|
|
5.7
|
|
|
2.5
|
|
|
44
|
%
|
General and administrative
|
|
|
14.9
|
|
|
9.9
|
|
|
5.0
|
|
|
51
|
%
|
|
28.9
|
|
|
19.0
|
|
|
9.9
|
|
|
52
|
%
|
Depreciation and amortization
|
|
|
44.7
|
|
|
31.4
|
|
|
13.3
|
|
|
42
|
%
|
|
84.0
|
|
|
62.5
|
|
|
21.5
|
|
|
34
|
%
|
Transaction and acquisition integration costs
|
|
|
0.4
|
|
|
9.6
|
|
|
(9.2
|
)
|
|
(96
|
)%
|
|
2.7
|
|
|
9.7
|
|
|
(7.0
|
)
|
|
(72
|
)%
|
Asset impairments and loss on disposal
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
%
|
|
-
|
|
|
8.6
|
|
|
(8.6
|
)
|
|
(100
|
)%
|
Interest expense
|
|
|
11.5
|
|
|
8.7
|
|
|
2.8
|
|
|
32
|
%
|
|
23.6
|
|
|
17.1
|
|
|
6.5
|
|
|
38
|
%
|
Income tax expense
|
|
|
0.5
|
|
|
0.4
|
|
|
0.1
|
|
|
25
|
%
|
|
0.7
|
|
|
0.8
|
|
|
(0.1
|
)
|
|
(13
|
)%
|
Net Income (Loss)
|
|
|
$
|
9.1
|
|
|
$
|
(6.5
|
)
|
|
$
|
15.6
|
|
|
n/m
|
|
$
|
14.7
|
|
|
$
|
(13.7
|
)
|
|
$
|
28.4
|
|
|
n/m
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Reconciliation of Net Income (Loss) to FFO and Normalized FFO
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
Three Months Ended
|
|
|
|
June 30,
|
|
Change
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
2016
|
|
2015
|
|
$
|
|
%
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
Reconciliation of Net Income (Loss) to FFO and Normalized FFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
14.7
|
|
|
$
|
(13.7
|
)
|
|
$
|
28.4
|
|
|
n/m
|
|
$
|
9.1
|
|
|
$
|
5.6
|
|
|
$
|
(1.2
|
)
|
|
$
|
(5.3
|
)
|
|
$
|
(6.5
|
)
|
Real estate depreciation and amortization
|
|
|
71.4
|
|
|
52.3
|
|
|
19.1
|
|
|
37
|
%
|
|
38.4
|
|
|
33.0
|
|
|
32.8
|
|
|
31.9
|
|
|
26.3
|
|
Asset impairments and loss on disposal
|
|
|
-
|
|
|
8.6
|
|
|
(8.6
|
)
|
|
n/m
|
|
-
|
|
|
-
|
|
|
-
|
|
|
4.9
|
|
|
-
|
|
Funds from Operations (FFO)
|
|
|
$
|
86.1
|
|
|
$
|
47.2
|
|
|
$
|
38.9
|
|
|
82
|
%
|
|
$
|
47.5
|
|
|
$
|
38.6
|
|
|
$
|
31.6
|
|
|
$
|
31.5
|
|
|
$
|
19.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of customer relationship intangibles
|
|
|
9.7
|
|
|
7.3
|
|
|
2.4
|
|
|
33
|
%
|
|
4.9
|
|
|
4.8
|
|
|
5.6
|
|
|
5.6
|
|
|
3.7
|
|
Transaction and acquisition integration costs
|
|
|
2.7
|
|
|
9.7
|
|
|
(7.0
|
)
|
|
(72
|
)%
|
|
0.4
|
|
|
2.3
|
|
|
2.5
|
|
|
1.9
|
|
|
9.6
|
|
Severance and management transition costs
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
n/m
|
|
-
|
|
|
-
|
|
|
4.1
|
|
|
1.9
|
|
|
-
|
|
Legal claim costs
|
|
|
0.5
|
|
|
0.3
|
|
|
0.2
|
|
|
n/m
|
|
0.3
|
|
|
0.2
|
|
|
0.1
|
|
|
-
|
|
|
0.3
|
|
Lease exit costs
|
|
|
-
|
|
|
0.8
|
|
|
(0.8
|
)
|
|
n/m
|
|
-
|
|
|
-
|
|
|
0.3
|
|
|
0.3
|
|
|
-
|
|
Normalized Funds from Operations (Normalized FFO)
|
|
|
$
|
99.0
|
|
|
$
|
65.3
|
|
|
$
|
33.7
|
|
|
52
|
%
|
|
$
|
53.1
|
|
|
$
|
45.9
|
|
|
$
|
44.2
|
|
|
$
|
41.2
|
|
|
$
|
33.4
|
|
Normalized FFO per diluted common share or common share equivalent
|
|
|
$
|
1.30
|
|
|
$
|
0.99
|
|
|
$
|
0.31
|
|
|
31
|
%
|
|
$
|
0.67
|
|
|
$
|
0.63
|
|
|
$
|
0.61
|
|
|
$
|
0.57
|
|
|
$
|
0.50
|
|
Weighted Average diluted common share and common share equivalent
outstanding
|
|
|
76.0
|
|
|
65.7
|
|
|
10.3
|
|
|
16
|
%
|
|
79.0
|
|
|
72.8
|
|
|
72.6
|
|
|
72.6
|
|
|
66.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of deferred financing costs
|
|
|
2.0
|
|
|
1.4
|
|
|
0.6
|
|
|
43
|
%
|
|
1.1
|
|
|
0.9
|
|
|
1.1
|
|
|
0.9
|
|
|
0.7
|
|
Stock-based compensation
|
|
|
6.2
|
|
|
6.1
|
|
|
0.1
|
|
|
2
|
%
|
|
3.2
|
|
|
3.0
|
|
|
2.4
|
|
|
3.5
|
|
|
3.1
|
|
Non-real estate depreciation and amortization
|
|
|
2.9
|
|
|
2.9
|
|
|
-
|
|
|
n/m
|
|
1.4
|
|
|
1.5
|
|
|
1.5
|
|
|
1.6
|
|
|
1.4
|
|
Deferred revenue and straight line rent adjustments
|
|
|
(7.0
|
)
|
|
(1.7
|
)
|
|
(5.3
|
)
|
|
n/m
|
|
(5.0
|
)
|
|
(2.0
|
)
|
|
1.1
|
|
|
(1.6
|
)
|
|
(0.3
|
)
|
Leasing commissions
|
|
|
(5.3
|
)
|
|
(2.0
|
)
|
|
(3.3
|
)
|
|
n/m
|
|
(3.4
|
)
|
|
(1.9
|
)
|
|
(3.3
|
)
|
|
(1.6
|
)
|
|
(1.5
|
)
|
Recurring capital expenditures
|
|
|
(1.8
|
)
|
|
(0.5
|
)
|
|
(1.3
|
)
|
|
n/m
|
|
(0.9
|
)
|
|
(0.9
|
)
|
|
(0.7
|
)
|
|
(1.2
|
)
|
|
(0.3
|
)
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Market Capitalization Summary, Reconciliation of Net Debt, and
Debt Schedule
(Unaudited)
|
|
|
|
|
|
|
|
|
Market Capitalization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in millions)
|
|
|
Shares or Equivalents Outstanding
|
|
Market Price as of June 30, 2016
|
|
Market Value Equivalents (in millions)
|
Common shares
|
|
|
79,619,202
|
|
|
$
|
55.66
|
|
|
$
|
4,431.6
|
Net Debt
|
|
|
|
|
|
|
1,111.6
|
Total Enterprise Value (TEV)
|
|
|
|
|
|
|
$
|
5,543.2
|
|
|
|
|
|
|
Reconciliation of Net Debt
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in millions)
|
|
|
June 30,
|
|
March 31,
|
|
|
|
2016
|
|
2016
|
Long-term debt(a)
|
|
|
$
|
1,113.9
|
|
|
$
|
1,029.1
|
|
Capital lease obligations
|
|
|
10.9
|
|
|
11.5
|
|
Less:
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
(13.2
|
)
|
|
(87.7
|
)
|
Net Debt
|
|
|
$
|
1,111.6
|
|
|
$
|
952.9
|
|
|
|
|
|
|
|
|
|
|
|
(a) Excludes adjustment for deferred financing costs.
|
|
|
|
|
|
|
|
|
Debt Schedule
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
Long-term debt:
|
|
|
Amount
|
|
Interest Rate
|
|
Maturity Date
|
6.375% senior notes due 2022, including bond premium
|
|
|
$
|
477.5
|
|
|
6.38
|
%
|
|
November 2022
|
Revolving credit facility
|
|
|
85.0
|
|
|
L + 170 bps
|
|
October 2019(a)
|
Term loan
|
|
|
300.0
|
|
|
2.10
|
%
|
|
October 2019
|
Term loan
|
|
|
250.0
|
|
|
2.10
|
%
|
|
September 2021
|
Total senior notes and bank credit facilities
|
|
|
1,112.5
|
|
|
3.93
|
%
|
|
|
Note payable
|
|
|
1.4
|
|
|
|
|
|
Total long-term debt(b)
|
|
|
$
|
1,113.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average term of debt:
|
|
|
5.0
|
|
|
years
|
|
|
|
|
|
|
|
|
|
|
|
(a) Assuming exercise of one-year extension option.
|
(b) Excludes adjustment for deferred financing costs.
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Colocation Square Footage (CSF) and Utilization
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2016
|
|
As of December 31, 2015
|
|
As of June 30, 2015
|
Market
|
|
|
Colocation Space (CSF)(a)
|
|
CSF Utilized(b)
|
|
Colocation Space (CSF)(a)
|
|
CSF Utilized(b)
|
|
Colocation Space (CSF)(a)
|
|
CSF Utilized(b)
|
Dallas
|
|
|
431,119
|
|
|
78
|
%
|
|
350,946
|
|
|
89
|
%
|
|
350,946
|
|
|
85
|
%
|
Cincinnati
|
|
|
386,484
|
|
|
91
|
%
|
|
419,589
|
|
|
91
|
%
|
|
420,223
|
|
|
91
|
%
|
Houston
|
|
|
308,074
|
|
|
70
|
%
|
|
255,094
|
|
|
88
|
%
|
|
255,094
|
|
|
86
|
%
|
Northern Virginia
|
|
|
236,863
|
|
|
99
|
%
|
|
74,653
|
|
|
73
|
%
|
|
37,485
|
|
|
98
|
%
|
Phoenix
|
|
|
183,511
|
|
|
94
|
%
|
|
149,620
|
|
|
100
|
%
|
|
149,620
|
|
|
100
|
%
|
Austin
|
|
|
121,833
|
|
|
49
|
%
|
|
121,833
|
|
|
51
|
%
|
|
59,995
|
|
|
94
|
%
|
New York Metro
|
|
|
121,530
|
|
|
89
|
%
|
|
121,434
|
|
|
87
|
%
|
|
-
|
|
|
n/a
|
San Antonio
|
|
|
108,064
|
|
|
99
|
%
|
|
43,843
|
|
|
100
|
%
|
|
43,843
|
|
|
100
|
%
|
Chicago
|
|
|
95,024
|
|
|
89
|
%
|
|
23,298
|
|
|
54
|
%
|
|
23,298
|
|
|
55
|
%
|
International
|
|
|
13,200
|
|
|
80
|
%
|
|
13,200
|
|
|
80
|
%
|
|
13,200
|
|
|
80
|
%
|
Total
|
|
|
2,005,702
|
|
|
84
|
%
|
|
1,573,510
|
|
|
86
|
%
|
|
1,353,704
|
|
|
90
|
%
|
Stabilized Properties(c)
|
|
|
1,822,067
|
|
|
92
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(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 lease has commenced billing) by
total CSF.
|
(c)
|
|
Stabilized properties include data halls that have been in service
for at least 24 months or are at least 85% utilized.
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
2016 Guidance
|
|
|
|
|
|
|
|
|
Category
|
|
|
Previous 2016 Guidance
|
|
|
|
Revised 2016 Guidance
|
Total Revenue
|
|
|
$520 - 530 million
|
|
|
|
$520 - 530 million
|
Base Revenue
|
|
|
$470 - 475 million
|
|
|
|
$470 - 475 million
|
Metered Power Reimbursements
|
|
|
$50 - 55 million
|
|
|
|
$50 - 55 million
|
Adjusted EBITDA
|
|
|
$270 - 280 million
|
|
|
|
$270 - 280 million
|
Normalized FFO per diluted common share
|
|
|
$2.48 - 2.58
|
|
|
|
$2.50 - 2.58
|
Capital Expenditures
|
|
|
$380 - 405 million
|
|
|
|
$635 - 655 million
|
Development
|
|
|
$375 - 396 million
|
|
|
|
$630 - 646 million
|
Recurring
|
|
|
$5 - 9 million
|
|
|
|
$5 - 9 million
|
The annual guidance provided above represents forward-looking
statements, which are based on current economic conditions, internal
assumptions about the Company's existing customer base and the supply
and demand dynamics of the markets in which CyrusOne operates.
CyrusOne does not provide reconciliations for the non-GAAP financial
measures included in the annual guidance provided above due to the
inherent difficulty in forecasting and quantifying certain amounts that
are necessary for such reconciliations, including net income (loss) and
adjustments that could be made for transaction and acquisition
integration costs, legal claim costs, lease exit costs, asset
impairments and loss on disposals and other charges in its
reconciliation of historic numbers, the amount of which, based on
historical experience, could be significant.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Data Center Portfolio
As of June 30, 2016
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Net Rentable Square Feet (NRSF)(a)
|
|
Powered Shell Available for
Future Development (NRSF)(k)
|
|
Available Critical Load
Capacity (MW)(l)
|
Stabilized Properties(b)
|
|
|
Metro Area
|
|
Annualized Rent(c)
|
|
Colocation Space (CSF)(d)
|
|
CSF Leased(e)
|
|
CSF Utilized(f)
|
|
Office & Other(g)
|
|
Office & Other Leased (h)
|
|
Supporting Infrastructure(i)
|
|
Total(j)
|
|
Dallas - Carrollton
|
|
|
Dallas
|
|
$
|
49,221,783
|
|
235,565
|
|
91
|
%
|
|
91
|
%
|
|
33,011
|
|
96
|
%
|
|
89,648
|
|
358,224
|
|
164,000
|
|
26
|
Houston - Houston West I
|
|
|
Houston
|
|
|
45,503,361
|
|
112,133
|
|
96
|
%
|
|
96
|
%
|
|
11,163
|
|
99
|
%
|
|
37,243
|
|
160,539
|
|
3,000
|
|
28
|
Cincinnati - 7th Street***
|
|
|
Cincinnati
|
|
|
36,237,138
|
|
178,925
|
|
93
|
%
|
|
93
|
%
|
|
5,744
|
|
100
|
%
|
|
167,241
|
|
351,910
|
|
74,000
|
|
13
|
Dallas - Lewisville*
|
|
|
Dallas
|
|
|
35,902,219
|
|
114,054
|
|
95
|
%
|
|
95
|
%
|
|
11,374
|
|
89
|
%
|
|
54,122
|
|
179,550
|
|
-
|
|
21
|
Totowa - Madison**
|
|
|
New York Metro
|
|
|
27,684,236
|
|
51,290
|
|
85
|
%
|
|
86
|
%
|
|
22,477
|
|
100
|
%
|
|
58,964
|
|
132,731
|
|
-
|
|
6
|
Wappingers Falls I**
|
|
|
New York Metro
|
|
|
25,950,797
|
|
37,000
|
|
96
|
%
|
|
96
|
%
|
|
20,167
|
|
97
|
%
|
|
15,077
|
|
72,244
|
|
-
|
|
3
|
Cincinnati - North Cincinnati
|
|
|
Cincinnati
|
|
|
23,355,337
|
|
65,303
|
|
92
|
%
|
|
96
|
%
|
|
44,886
|
|
72
|
%
|
|
52,950
|
|
163,139
|
|
65,000
|
|
14
|
Houston - Galleria
|
|
|
Houston
|
|
|
22,445,982
|
|
63,469
|
|
59
|
%
|
|
59
|
%
|
|
23,259
|
|
51
|
%
|
|
24,927
|
|
111,655
|
|
-
|
|
14
|
San Antonio I
|
|
|
San Antonio
|
|
|
22,105,974
|
|
43,843
|
|
99
|
%
|
|
99
|
%
|
|
5,989
|
|
83
|
%
|
|
45,650
|
|
95,482
|
|
11,000
|
|
12
|
Chicago - Aurora I
|
|
|
Chicago
|
|
|
20,416,869
|
|
71,726
|
|
100
|
%
|
|
100
|
%
|
|
34,008
|
|
100
|
%
|
|
205,034
|
|
310,768
|
|
67,000
|
|
60
|
Houston - Houston West II
|
|
|
Houston
|
|
|
20,140,042
|
|
79,540
|
|
87
|
%
|
|
87
|
%
|
|
3,355
|
|
62
|
%
|
|
55,023
|
|
137,918
|
|
12,000
|
|
12
|
Florence
|
|
|
Cincinnati
|
|
|
15,057,665
|
|
52,698
|
|
100
|
%
|
|
100
|
%
|
|
46,848
|
|
87
|
%
|
|
40,374
|
|
139,920
|
|
-
|
|
9
|
Phoenix - Chandler II
|
|
|
Phoenix
|
|
|
14,588,312
|
|
74,034
|
|
100
|
%
|
|
100
|
%
|
|
5,639
|
|
38
|
%
|
|
25,519
|
|
105,192
|
|
-
|
|
12
|
Austin II
|
|
|
Austin
|
|
|
14,093,285
|
|
43,772
|
|
93
|
%
|
|
93
|
%
|
|
1,821
|
|
100
|
%
|
|
22,433
|
|
68,026
|
|
-
|
|
5
|
Northern Virginia - Sterling I
|
|
|
Northern Virginia
|
|
|
12,572,273
|
|
77,865
|
|
98
|
%
|
|
98
|
%
|
|
1,901
|
|
100
|
%
|
|
52,605
|
|
132,371
|
|
-
|
|
12
|
San Antonio II
|
|
|
San Antonio
|
|
|
11,368,000
|
|
64,221
|
|
100
|
%
|
|
100
|
%
|
|
11,255
|
|
100
|
%
|
|
41,127
|
|
116,603
|
|
-
|
|
12
|
Stamford - Riverbend**
|
|
|
New York Metro
|
|
|
11,331,859
|
|
20,000
|
|
92
|
%
|
|
93
|
%
|
|
-
|
|
-
|
%
|
|
8,484
|
|
28,484
|
|
-
|
|
2
|
Phoenix - Chandler I
|
|
|
Phoenix
|
|
|
10,929,159
|
|
73,921
|
|
85
|
%
|
|
85
|
%
|
|
34,582
|
|
12
|
%
|
|
38,572
|
|
147,075
|
|
31,000
|
|
16
|
Cincinnati - Hamilton*
|
|
|
Cincinnati
|
|
|
9,209,754
|
|
46,565
|
|
76
|
%
|
|
76
|
%
|
|
1,077
|
|
100
|
%
|
|
35,336
|
|
82,978
|
|
-
|
|
10
|
Austin I*
|
|
|
Austin
|
|
|
7,348,850
|
|
16,223
|
|
57
|
%
|
|
57
|
%
|
|
21,476
|
|
-
|
%
|
|
7,517
|
|
45,216
|
|
-
|
|
2
|
London - Great Bridgewater**
|
|
|
International
|
|
|
5,587,392
|
|
10,000
|
|
99
|
%
|
|
99
|
%
|
|
-
|
|
-
|
%
|
|
514
|
|
10,514
|
|
-
|
|
1
|
Cincinnati - Mason
|
|
|
Cincinnati
|
|
|
5,435,641
|
|
34,072
|
|
100
|
%
|
|
100
|
%
|
|
26,458
|
|
98
|
%
|
|
17,193
|
|
77,723
|
|
-
|
|
4
|
Dallas - Midway**
|
|
|
Dallas
|
|
|
5,408,662
|
|
8,390
|
|
100
|
%
|
|
100
|
%
|
|
-
|
|
-
|
%
|
|
-
|
|
8,390
|
|
-
|
|
1
|
Northern Virginia - Sterling II
|
|
|
Northern Virginia
|
|
|
4,635,000
|
|
158,998
|
|
100
|
%
|
|
100
|
%
|
|
8,651
|
|
100
|
%
|
|
55,306
|
|
222,955
|
|
-
|
|
30
|
Norwalk I**
|
|
|
New York Metro
|
|
|
3,580,688
|
|
13,240
|
|
78
|
%
|
|
78
|
%
|
|
4,085
|
|
72
|
%
|
|
40,610
|
|
57,935
|
|
87,000
|
|
2
|
Chicago - Lombard
|
|
|
Chicago
|
|
|
2,343,026
|
|
13,516
|
|
72
|
%
|
|
72
|
%
|
|
4,115
|
|
100
|
%
|
|
12,230
|
|
29,861
|
|
29,000
|
|
3
|
Dallas - Marsh**
|
|
|
Dallas
|
|
|
2,214,906
|
|
4,245
|
|
100
|
%
|
|
100
|
%
|
|
-
|
|
-
|
%
|
|
-
|
|
4,245
|
|
-
|
|
1
|
Stamford - Omega**
|
|
|
New York Metro
|
|
|
1,428,844
|
|
-
|
|
-
|
%
|
|
-
|
%
|
|
18,552
|
|
87
|
%
|
|
3,796
|
|
22,348
|
|
-
|
|
-
|
Cincinnati - Blue Ash*
|
|
|
Cincinnati
|
|
|
584,331
|
|
6,193
|
|
36
|
%
|
|
36
|
%
|
|
6,821
|
|
100
|
%
|
|
2,165
|
|
15,179
|
|
-
|
|
-
|
South Bend - Crescent*
|
|
|
Chicago
|
|
|
561,587
|
|
3,432
|
|
42
|
%
|
|
42
|
%
|
|
-
|
|
-
|
%
|
|
5,125
|
|
8,557
|
|
11,000
|
|
-
|
Totowa - Commerce**
|
|
|
New York Metro
|
|
|
542,460
|
|
-
|
|
-
|
%
|
|
-
|
%
|
|
20,460
|
|
40
|
%
|
|
5,540
|
|
26,000
|
|
-
|
|
-
|
Phoenix - Chandler III
|
|
|
Phoenix
|
|
|
466,847
|
|
35,556
|
|
25
|
%
|
|
100
|
%
|
|
-
|
|
-
|
%
|
|
3,158
|
|
38,714
|
|
-
|
|
2
|
Houston - Houston West III
|
|
|
Houston
|
|
|
423,849
|
|
-
|
|
-
|
%
|
|
-
|
%
|
|
8,495
|
|
100
|
%
|
|
10,652
|
|
19,147
|
|
212,000
|
|
-
|
South Bend - Monroe
|
|
|
Chicago
|
|
|
385,866
|
|
6,350
|
|
22
|
%
|
|
22
|
%
|
|
-
|
|
-
|
%
|
|
6,478
|
|
12,828
|
|
4,000
|
|
-
|
Singapore - Inter Business Park**
|
|
|
International
|
|
|
292,807
|
|
3,200
|
|
22
|
%
|
|
22
|
%
|
|
-
|
|
-
|
%
|
|
-
|
|
3,200
|
|
-
|
|
-
|
Cincinnati - Goldcoast
|
|
|
Cincinnati
|
|
|
96,090
|
|
2,728
|
|
-
|
%
|
|
-
|
%
|
|
5,280
|
|
100
|
%
|
|
16,481
|
|
24,489
|
|
14,000
|
|
1
|
Stabilized Properties - Total
|
|
|
|
|
$
|
469,450,891
|
|
1,822,067
|
|
90
|
%
|
|
92
|
%
|
|
442,949
|
|
76
|
%
|
|
1,257,094
|
|
3,522,111
|
|
784,000
|
|
333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-Stabilized Properties(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Austin III (DH #1)
|
|
|
Austin
|
|
|
2,820,128
|
|
61,838
|
|
14
|
%
|
|
16
|
%
|
|
15,055
|
|
30
|
%
|
|
20,629
|
|
97,522
|
|
67,000
|
|
3
|
Houston - Houston West III (DH #1)
|
|
|
Houston
|
|
|
11,500
|
|
52,932
|
|
2
|
%
|
|
2
|
%
|
|
-
|
|
-
|
%
|
|
23,358
|
|
76,290
|
|
-
|
|
6
|
Dallas - Carrollton (DH #5)
|
|
|
Dallas
|
|
|
-
|
|
68,865
|
|
-
|
%
|
|
3
|
%
|
|
-
|
|
-
|
%
|
|
10,539
|
|
79,404
|
|
-
|
|
6
|
All Properties - Total
|
|
|
|
|
$
|
472,282,519
|
|
2,005,702
|
|
82
|
%
|
|
84
|
%
|
|
458,004
|
|
74
|
%
|
|
1,311,620
|
|
3,775,327
|
|
851,000
|
|
348
|
|
|
|
|
|
|
|
*
|
|
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)
|
|
Stabilized properties include data halls that have been in service
for at least 24 months or are at least 85% utilized. Pre-stabilized
properties include data halls that have been in service for less
than 24 months and are less than 85% utilized.
|
(c)
|
|
Represents monthly contractual rent (defined as cash rent including
customer reimbursements for metered power) under existing customer
leases as of June 30, 2016, multiplied by 12. For the month of June
2016, customer reimbursements were $53.3 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 July 1, 2014 through June 30, 2016, customer
reimbursements under leases with separately metered power
constituted between 10.6% 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, 2016 was $492.5
million. Our annualized effective rent was greater than our
annualized rent as of June 30, 2016 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)
|
|
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.
|
(e)
|
|
Percent leased is determined based on CSF being billed to customers
under signed leases as of June 30, 2016 divided by total CSF. Leases
signed but not commenced as of June 30, 2016 are not included.
|
(f)
|
|
Utilization is calculated by dividing CSF under signed leases for
colocation space (whether or not the lease has commenced billing) by
total CSF.
|
(g)
|
|
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.
|
(h)
|
|
Percent leased is determined based on Office & Other space being
billed to customers under signed leases as of June 30, 2016 divided
by total Office & Other space. Leases signed but not commenced as of
June 30, 2016 are not included.
|
(i)
|
|
Represents infrastructure support space, including mechanical,
telecommunications and utility rooms, as well as building common
areas.
|
(j)
|
|
Represents the NRSF at an operating facility that is currently
leased or readily available for lease. This excludes existing vacant
space held for development.
|
(k)
|
|
Represents space that is under roof that could be developed in the
future for operating NRSF, rounded to the nearest 1,000.
|
(l)
|
|
Critical load capacity represents the aggregate power available for
lease and exclusive use by customers 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, 2016
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NRSF Under Development(a)
|
|
|
|
|
|
Under Development Costs(b)
|
Facilities
|
|
|
Metropolitan Area
|
|
|
Estimated Completion Date
|
|
|
Colocation Space (CSF)
|
|
|
Office & Other
|
|
|
Supporting Infrastructure
|
|
|
Powered Shell(b)
|
|
|
Total
|
|
|
Critical Load MW Capacity(c)
|
|
|
Actual to Date(d)
|
|
|
Estimated Costs to Completion(e)
|
|
|
Total
|
Northern Virginia - Sterling III
|
|
|
Northern Virginia
|
|
|
1Q'17
|
|
|
79,000
|
|
|
7,000
|
|
|
34,000
|
|
|
-
|
|
|
120,000
|
|
|
15
|
|
|
|
$
|
-
|
|
|
$
|
80-88
|
|
|
$
|
80-88
|
San Antonio III
|
|
|
San Antonio
|
|
|
1Q'17
|
|
|
132,000
|
|
|
9,000
|
|
|
43,000
|
|
|
-
|
|
|
184,000
|
|
|
24
|
|
|
|
|
1
|
|
|
|
119-131
|
|
|
|
120-132
|
Phoenix - Chandler III
|
|
|
Phoenix
|
|
|
3Q'16
|
|
|
32,000
|
|
|
2,000
|
|
|
17,000
|
|
|
12,000
|
|
|
63,000
|
|
|
6
|
|
|
|
|
2
|
|
|
|
22-25
|
|
|
|
24-27
|
Chicago - Aurora I
|
|
|
Chicago
|
|
|
3Q'16
|
|
|
16,000
|
|
|
-
|
|
|
3,000
|
|
|
-
|
|
|
19,000
|
|
|
5
|
|
|
|
|
-
|
|
|
|
7-8
|
|
|
|
7-8
|
Total
|
|
|
|
|
|
|
|
|
259,000
|
|
|
18,000
|
|
|
97,000
|
|
|
12,000
|
|
|
386,000
|
|
|
50
|
|
|
|
$
|
3
|
|
|
$
|
228-252
|
|
|
$
|
231-255
|
|
(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 NRSF under construction that, upon completion, will be
powered shell available for future development into operating NRSF.
|
(c)
|
|
Critical load capacity represents the aggregate power available for
lease and exclusive use by customers 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.
|
(d)
|
|
Actual to date is the cash investment as of June 30, 2016. There may
be accruals above this amount for work completed, for which cash has
not yet been paid.
|
(e)
|
|
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.
|
|
CyrusOne Inc.
Land Available for Future Development (Acres)
As of June 30, 2016
(Unaudited)
|
|
|
|
|
As of
|
Market
|
|
|
June 30, 2016
|
Cincinnati
|
|
|
98
|
Dallas
|
|
|
-
|
Houston
|
|
|
20
|
Northern Virginia
|
|
|
40
|
Austin
|
|
|
22
|
Phoenix
|
|
|
27
|
San Antonio
|
|
|
8
|
Chicago
|
|
|
15
|
New York Metro
|
|
|
-
|
International
|
|
|
-
|
Total Available
|
|
|
230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Leasing Statistics - Lease Signings
As of June 30, 2016
(Dollars in thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period
|
|
|
Number of Leases(a)(f)
|
|
|
Total CSF Signed(b)(f)
|
|
|
Total kW Signed(c)(f)
|
|
|
Total MRR Signed ($000)(d)(f)
|
|
|
Weighted Average Lease Term(e)(f)
|
2Q'16
|
|
|
363
|
|
|
282,000
|
|
|
40,272
|
|
|
$4,866
|
|
|
112
|
Prior 4Q Avg.
|
|
|
366
|
|
|
115,750
|
|
|
16,263
|
|
|
$2,368
|
|
|
100
|
1Q'16
|
|
|
375
|
|
|
181,000
|
|
|
25,468
|
|
|
$3,610
|
|
|
144
|
4Q'15
|
|
|
326
|
|
|
205,000
|
|
|
30,012
|
|
|
$3,630
|
|
|
107
|
3Q'15
|
|
|
392
|
|
|
29,000
|
|
|
4,815
|
|
|
$1,112
|
|
|
57
|
2Q'15
|
|
|
372
|
|
|
48,000
|
|
|
4,758
|
|
|
$1,119
|
|
|
90
|
|
|
|
(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 includes the monthly impact of
installation charges of approximately $0.1 million in each quarter.
|
(e)
|
|
Calculated on a CSF-weighted basis.
|
(f)
|
|
1Q'16 includes the CME lease. Non-CME signings represent
approximately 60% of total CSF, kW, and MRR signed.
|
|
CyrusOne Inc.
New MRR Signed - Existing vs. New Customers
As of June 30, 2016
(Dollars in thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New MRR(a) Signed ($000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q'14
|
|
|
|
4Q'14
|
|
|
|
1Q'15
|
|
|
|
2Q'15
|
|
|
|
3Q'15
|
|
|
|
4Q'15
|
|
|
|
1Q'16
|
|
|
|
2Q'16
|
Existing Customers
|
|
|
|
$
|
347
|
|
|
|
|
$
|
768
|
|
|
|
|
$
|
1,160
|
|
|
|
|
$
|
677
|
|
|
|
|
$
|
578
|
|
|
|
|
$
|
2,984
|
|
|
|
|
$
|
1,767
|
|
|
|
|
$
|
4,406
|
|
New Customers
|
|
|
|
$
|
347
|
|
|
|
|
$
|
182
|
|
|
|
|
$
|
361
|
|
|
|
|
$
|
442
|
|
|
|
|
$
|
534
|
|
|
|
|
$
|
646
|
|
|
|
|
$
|
1,843
|
|
|
|
|
$
|
460
|
|
Total
|
|
|
|
$
|
694
|
|
|
|
|
$
|
950
|
|
|
|
|
$
|
1,521
|
|
|
|
|
$
|
1,119
|
|
|
|
|
$
|
1,112
|
|
|
|
|
$
|
3,630
|
|
|
|
|
$
|
3,610
|
|
|
|
|
$
|
4,866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% from Existing Customers
|
|
|
|
|
50
|
%
|
|
|
|
|
81
|
%
|
|
|
|
|
76
|
%
|
|
|
|
|
61
|
%
|
|
|
|
|
52
|
%
|
|
|
|
|
82
|
%
|
|
|
|
|
49
|
%
|
|
|
|
|
91
|
%
|
|
|
|
(a)
|
|
Monthly recurring rent is defined as the average monthly contractual
rent during the term of the lease. It includes the monthly impact of
installation charges of approximately $0.1 million in each of
1Q'15-2Q'16. 1Q'16 includes the CME lease, with non-CME signings
representing approximately 60% of total MRR signed.
|
|
CyrusOne Inc.
Customer Sector Diversification(a)
As of June 30, 2016
(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
|
|
|
5
|
|
|
$
|
34,045,112
|
|
|
|
7.2
|
%
|
|
|
70.2
|
2
|
|
|
Financial Services
|
|
|
1
|
|
|
|
20,416,869
|
|
|
|
4.3
|
%
|
|
|
177.0
|
3
|
|
|
Telecommunication Services
|
|
|
2
|
|
|
|
15,281,683
|
|
|
|
3.2
|
%
|
|
|
27.1
|
4
|
|
|
Information Technology
|
|
|
2
|
|
|
|
14,631,812
|
|
|
|
3.1
|
%
|
|
|
103.9
|
5
|
|
|
Research and Consulting Services
|
|
|
3
|
|
|
|
14,380,122
|
|
|
|
3.1
|
%
|
|
|
22.0
|
6
|
|
|
Energy
|
|
|
1
|
|
|
|
14,279,189
|
|
|
|
3.0
|
%
|
|
|
20.3
|
7
|
|
|
Energy
|
|
|
5
|
|
|
|
12,892,055
|
|
|
|
2.7
|
%
|
|
|
24.7
|
8
|
|
|
Industrials
|
|
|
4
|
|
|
|
11,168,400
|
|
|
|
2.4
|
%
|
|
|
20.8
|
9
|
|
|
Telecommunications
|
|
|
7
|
|
|
|
10,632,606
|
|
|
|
2.3
|
%
|
|
|
21.4
|
10
|
|
|
Information Technology
|
|
|
2
|
|
|
|
10,320,859
|
|
|
|
2.2
|
%
|
|
|
48.9
|
11
|
|
|
Information Technology
|
|
|
2
|
|
|
|
8,210,851
|
|
|
|
1.7
|
%
|
|
|
13.7
|
12
|
|
|
Financial Services
|
|
|
1
|
|
|
|
6,600,225
|
|
|
|
1.4
|
%
|
|
|
47.0
|
13
|
|
|
Financial Services
|
|
|
3
|
|
|
|
5,996,235
|
|
|
|
1.3
|
%
|
|
|
9.6
|
14
|
|
|
Financial Services
|
|
|
6
|
|
|
|
5,828,392
|
|
|
|
1.2
|
%
|
|
|
49.7
|
15
|
|
|
Telecommunication Services
|
|
|
5
|
|
|
|
5,774,419
|
|
|
|
1.2
|
%
|
|
|
34.1
|
16
|
|
|
Information Technology
|
|
|
2
|
|
|
|
5,738,272
|
|
|
|
1.2
|
%
|
|
|
140.4
|
17
|
|
|
Energy
|
|
|
2
|
|
|
|
5,556,272
|
|
|
|
1.2
|
%
|
|
|
17.3
|
18
|
|
|
Financial Services
|
|
|
1
|
|
|
|
4,972,957
|
|
|
|
1.1
|
%
|
|
|
65.0
|
19
|
|
|
Consumer Staples
|
|
|
2
|
|
|
|
4,736,822
|
|
|
|
1.0
|
%
|
|
|
69.5
|
20
|
|
|
Financial Services
|
|
|
2
|
|
|
|
4,403,726
|
|
|
|
0.9
|
%
|
|
|
21.0
|
|
|
|
|
|
|
|
|
|
$
|
215,866,878
|
|
|
|
45.7
|
%
|
|
|
57.6
|
|
(a)
|
|
Customers and their affiliates are consolidated.
|
(b)
|
|
Represents monthly contractual rent (defined as cash rent including
customer reimbursements for metered power) under existing customer
leases as of June 30, 2016, multiplied by 12. For the month of June
2016, customer reimbursements were $53.3 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 July 1, 2014 through June 30, 2016, customer
reimbursements under leases with separately metered power
constituted between 10.6% 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, 2016 was $492.5
million. Our annualized effective rent was greater than our
annualized rent as of June 30, 2016 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, 2016, which was
approximately $472.3 million.
|
(d)
|
|
Weighted average based on customer's percentage of total annualized
rent expiring and is as of June 30, 2016, 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Lease Distribution
As of June 30, 2016
(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
|
|
|
|
694
|
|
|
|
74
|
%
|
|
|
|
134,740
|
|
|
|
4
|
%
|
|
|
|
$
|
66,932,222
|
|
|
|
14
|
%
|
1,000-2,499
|
|
|
|
96
|
|
|
|
10
|
%
|
|
|
|
152,860
|
|
|
|
5
|
%
|
|
|
|
35,253,456
|
|
|
|
8
|
%
|
2,500-4,999
|
|
|
|
60
|
|
|
|
6
|
%
|
|
|
|
212,280
|
|
|
|
7
|
%
|
|
|
|
43,827,360
|
|
|
|
9
|
%
|
5,000-9,999
|
|
|
|
33
|
|
|
|
4
|
%
|
|
|
|
234,237
|
|
|
|
8
|
%
|
|
|
|
53,380,419
|
|
|
|
11
|
%
|
10,000+
|
|
|
|
57
|
|
|
|
6
|
%
|
|
|
|
2,373,620
|
|
|
|
76
|
%
|
|
|
|
272,889,062
|
|
|
|
58
|
%
|
Total
|
|
|
|
940
|
|
|
|
100
|
%
|
|
|
|
3,107,737
|
|
|
|
100
|
%
|
|
|
|
$
|
472,282,519
|
|
|
|
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, 2016. 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, 2016, multiplied by 12. For the month of June
2016, customer reimbursements were $53.3 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 July 1, 2014 through June 30, 2016, customer
reimbursements under leases with separately metered power
constituted between 10.6% 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, 2016 was $492.5
million. Our annualized effective rent was greater than our
annualized rent as of June 30, 2016 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, 2016
(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
|
|
|
|
|
|
667,590
|
|
|
|
18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Month-to-Month
|
|
|
235
|
|
|
46,969
|
|
|
|
1
|
%
|
|
|
$
|
10,186,464
|
|
|
|
2
|
%
|
|
|
$
|
10,461,246
|
|
|
2
|
%
|
2016
|
|
|
997
|
|
|
194,391
|
|
|
|
5
|
%
|
|
|
|
46,664,204
|
|
|
|
10
|
%
|
|
|
|
46,729,992
|
|
|
9
|
%
|
2017
|
|
|
1,555
|
|
|
501,192
|
|
|
|
13
|
%
|
|
|
|
92,853,258
|
|
|
|
20
|
%
|
|
|
|
93,974,351
|
|
|
17
|
%
|
2018
|
|
|
1,068
|
|
|
372,712
|
|
|
|
10
|
%
|
|
|
|
106,731,611
|
|
|
|
23
|
%
|
|
|
|
118,415,806
|
|
|
22
|
%
|
2019
|
|
|
622
|
|
|
362,847
|
|
|
|
10
|
%
|
|
|
|
53,705,913
|
|
|
|
11
|
%
|
|
|
|
56,635,412
|
|
|
10
|
%
|
2020
|
|
|
290
|
|
|
375,668
|
|
|
|
10
|
%
|
|
|
|
52,019,256
|
|
|
|
11
|
%
|
|
|
|
56,997,776
|
|
|
11
|
%
|
2021
|
|
|
314
|
|
|
164,803
|
|
|
|
4
|
%
|
|
|
|
26,474,880
|
|
|
|
6
|
%
|
|
|
|
32,586,328
|
|
|
6
|
%
|
2022
|
|
|
25
|
|
|
55,230
|
|
|
|
1
|
%
|
|
|
|
6,877,529
|
|
|
|
1
|
%
|
|
|
|
7,883,638
|
|
|
1
|
%
|
2023
|
|
|
55
|
|
|
59,492
|
|
|
|
2
|
%
|
|
|
|
6,747,908
|
|
|
|
1
|
%
|
|
|
|
8,540,872
|
|
|
2
|
%
|
2024
|
|
|
10
|
|
|
62,952
|
|
|
|
2
|
%
|
|
|
|
9,618,366
|
|
|
|
2
|
%
|
|
|
|
11,339,325
|
|
|
2
|
%
|
2025
|
|
|
29
|
|
|
157,960
|
|
|
|
4
|
%
|
|
|
|
17,652,369
|
|
|
|
4
|
%
|
|
|
|
23,929,288
|
|
|
4
|
%
|
2026
|
|
|
8
|
|
|
368,050
|
|
|
|
10
|
%
|
|
|
|
16,275,376
|
|
|
|
3
|
%
|
|
|
|
43,229,248
|
|
|
8
|
%
|
2027 - Thereafter
|
|
|
5
|
|
|
385,471
|
|
|
|
10
|
%
|
|
|
|
26,475,385
|
|
|
|
6
|
%
|
|
|
|
34,058,443
|
|
|
6
|
%
|
Total
|
|
|
5,213
|
|
|
3,775,327
|
|
|
|
100
|
%
|
|
|
$
|
472,282,519
|
|
|
|
100
|
%
|
|
|
$
|
544,781,725
|
|
|
100
|
%
|
|
|
|
(a)
|
|
Leases that were auto-renewed prior to June 30, 2016 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, 2016, multiplied by 12. For the month of June
2016, customer reimbursements were $53.3 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 July 1, 2014 through June 30, 2016, customer
reimbursements under leases with separately metered power
constituted between 10.6% 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, 2016 was $492.5
million. Our annualized effective rent was greater than our
annualized rent as of June 30, 2016 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, 2016, multiplied
by 12.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160801006201/en/
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