[May 02, 2018] |
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CyrusOne Reports First Quarter 2018 Earnings
CyrusOne Inc. (NASDAQ: CONE), a premier global data center REIT, today
announced first quarter 2018 earnings.
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Highlights
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Category
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1Q'18
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% Change
vs. 1Q'17
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Revenue
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$196.6 million
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32%
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Net income
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$43.5 million
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n/m
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Adjusted EBITDA
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$109.5 million
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36%
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Normalized FFO
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$82.2 million
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34%
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Net income per share
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$0.45
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n/m
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Normalized FFO per share
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$0.85
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18%
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Pro forma including Zenium, leased 32 megawatts ("MW") and 240,000
colocation square feet ("CSF") in the first quarter, totaling $45
million in annualized GAAP revenue
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-- Includes 29 MW and 226,000 CSF totaling $40.4 million in
annualized revenue signed by CyrusOne and 3 MW and 14,000 CSF
totaling $4.2 million in annualized GAAP revenue signed by Zenium
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Backlog of $39 million in annualized GAAP revenue as of the end of
the first quarter, representing more than $230 million in total
contract value
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Added three Fortune 1000 companies as new customers, increasing
the total number of Fortune 1000 customers to 200 as of the end of
the quarter
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Entered into a new senior unsecured credit agreement, increasing
the size of the credit facility by $1.0 billion, or 50%, to a
total of $3.0 billion, consisting of $1.7 billion revolving credit
facility and $1.3 billion in term loan commitments
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-- Agreement also provides for an extension of maturity dates,
reductions in interest rate margins, and enhanced flexibility in
support of the Company's international expansion plans, including
the ability to borrow in non-USD currencies
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Raised approximately $152 million in net proceeds through the sale
of 3.0 million shares of common stock under the at-the-market
("ATM") equity program
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Acquisition of Zenium, a leading hyperscale data center provider
in Europe with four properties in London and Frankfurt, the
continent's two largest data center markets, expected to close in
May, pending final regulatory approval
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"We had one of the highest quarterly leasing totals in the Company's
history and continued strong financial performance, with Revenue and
Adjusted EBITDA each growing over 30%" said Gary Wojtaszek, president
and chief executive officer of CyrusOne. "We are excited to begin our
global expansion by establishing a presence in the two largest markets
in Europe, London and Frankfurt, at a time when demand across the
continent has accelerated and our customers are increasingly asking us
to support their international growth objectives."
First Quarter 2018 Financial Results
Revenue was $196.6 million for the first quarter, compared to $149.3
million for the same period in 2017, an increase of 32%. The increase in
revenue was driven primarily by a 29% increase in occupied CSF, lease
termination fees totaling $5.0 million, and additional interconnection
services. The lease termination fees related primarily to a
reimbursement for capital expenditures made in connection with the
delivery of an initial deployment for a customer that subsequently
migrated from that location to another CyrusOne facility.
Net income was $43.5 million for the first quarter, compared to net loss
of $30.4 million in the same period in 2017. Net income for the first
quarter included a $40.5 million unrealized gain on the Company's equity
investment in GDS due to an increase in GDS's share price during the
quarter. Net income per basic and diluted common share1 was
$0.45 in the first quarter of 2018, compared to net loss of $(0.36) per
basic and diluted common share in the same period in 2017.
Net operating income (NOI)2 was $128.8 million for the first
quarter, compared to $97.0 million in the same period in 2017, an
increase of 33%. Adjusted EBITDA3 was $109.5 million for the
first quarter, compared to $80.7 million in the same period in 2017, an
increase of 36%.
Normalized Funds From Operations (Normalized FFO)4 was $82.2
million for the first quarter, compared to $61.2 million in the same
period in 2017, an increase of 34%. Normalized FFO per basic and diluted
common share was $0.85 in the first quarter of 2018, an increase of 18%
over first quarter 2017.
Leasing Activity
CyrusOne leased approximately 29 MW of power and 226,000 CSF in the
first quarter, representing $3.4 million in monthly recurring rent,
inclusive of the monthly impact of installation charges, or
approximately $40.4 million in annualized GAAP revenue5,
excluding estimates for pass-through power. This excludes the impact of
leases signed by Zenium in the first quarter. The weighted average lease
term of the new leases, based on square footage, is 77 months (6.4
years), and the weighted average remaining lease term of CyrusOne's
portfolio is 53 months (taking into account the impact of the backlog).
Recurring rent churn6 for the first quarter was 0.5%,
compared to 1.4% for the same period in 2017.
Portfolio Development and CSF Leased
In the first quarter, the Company completed construction on 82,000 CSF
and 27 MW of power capacity across four projects in Dallas, Northern
Virginia, Phoenix and Austin, increasing total CSF across 45 data
centers to approximately 3.35 million CSF. CSF leased7 as of
the end of the first quarter was 92% for stabilized properties8
and 86% overall. In addition, the Company has development projects
underway in Dallas, Northern Virginia, San Antonio, Phoenix, the New
York Metro area, and Chicago that are expected to add approximately
132,000 CSF and 36 MW of power capacity.
Balance Sheet and Liquidity
As of March 31, 2018, the Company had gross assets9 totaling
approximately $5.3 billion, an increase of approximately 28% over gross
assets as of March 31, 2017. CyrusOne had $2.20 billion of long-term debt10,
cash and cash equivalents of $228.7 million, and $1.7 billion available
under its unsecured revolving credit facility as of March 31, 2018. Net
debt10 was $1.99 billion as of March 31, 2018, representing
approximately 28% of the Company's total enterprise value as of March
31, 2018 of $7.1 billion, or 4.5x Adjusted EBITDA for the last quarter
annualized. Available liquidity11 was $2.22 billion as of
March 31, 2018.
As previously announced, CyrusOne entered into a new senior unsecured
credit agreement in the first quarter, increasing the size of the credit
facility by $1.0 billion, or 50%, to a total of $3.0 billion. The new
agreement also provides for an extension of maturity dates, reductions
in interest rate margins, and enhanced flexibility in support of the
Company's international expansion plans, including the ability to borrow
in non-USD currencies.
The agreement consists of a $1.7 billion revolving credit facility,
which includes a $750 million multicurrency borrowing sublimit, and term
loan commitments totaling $1.3 billion. The term loan commitments
consist of a $1.0 billion five-year term loan, which includes a delayed
draw feature allowing the Company to draw $300 million in up to three
tranches over a six-month period in multiple currencies, and a new $300
million seven-year term loan. The interest rate margins applicable to
the revolving credit facility and the five-year term loan based on the
Company's current leverage level have been decreased by 10 basis points
to LIBOR plus 1.45% and LIBOR plus 1.40%, respectively, while the
interest rate margin applicable to the seven-year term loan based on the
Company's current leverage level is LIBOR plus 1.70%. The maturity of
the revolving credit facility is March 2022, and the facility includes a
one-year extension option which, if exercised by the Company, would
extend the final maturity to March 2023. The maturity of the five-year
term loan is March 2023, and the seven-year term loan matures in March
2025. The credit agreement also contains an accordion that allows the
Company to obtain up to $1 billion in additional revolving or term loan
commitments.
Also in the first quarter, CyrusOne sold approximately 3.0 million
shares of its common stock through its ATM equity program at an average
price of $51.24, raising approximately $152 million in net equity
proceeds. As of March 31, 2018, there was approximately $346 million in
remaining availability under the current ATM program.
Dividend
On February 21, 2018, the Company announced a dividend of $0.46 per
share of common stock for the first quarter of 2018. The dividend was
paid on April 13, 2018, to stockholders of record at the close of
business on March 29, 2018.
Additionally, today the Company is announcing a dividend of $0.46 per
share of common stock for the second quarter of 2018. The dividend will
be paid on July 13, 2018, to stockholders of record at the close of
business on June 29, 2018.
Guidance
CyrusOne is reaffirming guidance for full year 2018. 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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2018
Guidance(1)
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Total Revenue
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$810 - 825 million
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Lease and Other Revenues from Customers
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$735 - 745 million
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Metered Power Reimbursements
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$75 - 80 million
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Adjusted EBITDA
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$460 - 470 million
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Normalized FFO per diluted common share
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$3.18 - 3.28
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Capital Expenditures
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$850 - 900 million
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Development
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$845 - 890 million
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Recurring
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$5 - 10 million
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(1) Full year 2018 guidance includes the impact of the
Zenium acquisition,
which is expected to close in May 2018. Development capital
expenditures include the acquisition of land for future
development.
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Upcoming Conferences and Events
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Jefferies 2018 Global Technology Conference on May 9-10 in Beverly
Hills, California
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J.P. Morgan Global Technology, Media and Communications Conference on
May 15-17 in Boston, Massachusetts
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2018 RBC Global Datacenter and Connectivity Conference on May 22 in
Falls Church, Virginia
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Cowen Technology, Media & Telecom Conference on May 30-31 in New York
City
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NAREIT's REITweek Conference on June 5-7 in New York City
Conference Call Details
CyrusOne will host a conference call on May 3, 2018, at 11:00 AM Eastern
Time (10:00 AM Central Time) to discuss its results for the first
quarter of 2018. A live webcast of the conference call and the
presentation to be made during the call will be available under the
"Company" tab in the "Investors / 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 May 3,
2018, through May 17, 2018. 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 10118898.
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.
Adoption of New Accounting Standard and Use of Non-GAAP Financial
Measurements
On January 1, 2018, we adopted the new accounting standard with respect
to revenue recognition, see "Note 2. Summary of Significant Accounting
Policies" in our financial statements included on Form 10-Q for
additional information. We have adopted the new standard using the
modified retroactive transition method, where financial statement
presentations prior to the date of adoption are not adjusted.
Accordingly, all information related to periods prior to 2018 have not
been adjusted, including non-GAAP measurements.
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.
1Net income / (loss) per common share is defined as net
income / (loss) divided by the weighted average common shares
outstanding for the period, which were 96.6 million for the first
quarter of 2018 (basic and diluted). The difference between basic and
diluted net income per share was less than one cent.
2We use Net Operating Income ("NOI"), which is a non-GAAP
financial measure commonly used in the REIT industry, as a supplemental
performance measure. We use NOI as a supplemental performance measure
because, when compared period over period, it captures trends in
occupancy rates, rental rates and operating costs. We also believe that,
as a widely recognized measure of the performance of REITs, NOI is used
by investors as a basis to evaluate REITs.
We calculate NOI as revenue less property operating expenses, each of
which are presented in the accompanying consolidated statements of
operations. Amortization of deferred leasing costs is presented in
depreciation and amortization, which is excluded from NOI. 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. However, the utility of NOI as a measure of our
performance is limited. Other REITs may not calculate NOI in the same
manner. Accordingly, our NOI may not be comparable to others. Therefore,
NOI should be considered only as a supplement to revenue and to net
income (loss) presented in accordance with GAAP as a measure of our
performance. NOI should not be used as a measure of our liquidity or as
indicative of funds available to fund our cash needs, including our
ability to make distributions. NOI also should not be used as a
supplement to or substitute for cash flow from operating activities
computed in accordance with GAAP.
3Adjusted EBITDA is defined as net income (loss) as defined
by U.S. GAAP plus interest expense, income tax (benefit) expense,
depreciation and amortization, asset impairments and (gain) loss on
disposals, stock-based compensation, transaction and integration costs,
severance and management transition costs, new accounting standards and
systems implementation costs, lease exit costs, legal claim costs, loss
on early extinguishment of debt, unrealized (gain) on marketable equity
investments 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.
4We use funds from operations ("FFO") and normalized funds
from operations ("Normalized FFO"), which are non-GAAP financial
measures commonly used in the REIT industry, as supplemental performance
measures. We use FFO and Normalized FFO as supplemental performance
measures because, when compared period over period, they capture trends
in occupancy rates, rental rates and operating costs. We also believe
that, as widely recognized measures of the performance of REITs, FFO and
Normalized FFO are used by investors as a basis to evaluate REITs. We
calculate FFO as net income (loss) computed in accordance with GAAP
before real estate depreciation and amortization and asset impairments
and gain or loss on disposal. While it is consistent with the definition
of FFO promulgated by the National Association of Real Estate Investment
Trusts ("NAREIT"), our computation of FFO may differ from the
methodology for calculating FFO used by other REITs. Accordingly, our
FFO may not be comparable to others.
We calculate Normalized FFO as FFO plus amortization of customer
relationship intangibles, transaction acquisition and other integration
costs, legal claim costs and lease exit costs, and other special items
including loss on early extinguishment of debt, new accounting standards
and system implementation costs, and severance and management transition
costs, as appropriate. Because the value of the customer relationship
intangibles is inextricably connected to the real estate acquired, the
Company believes the amortization of such intangibles 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. Other REITs may not calculate Normalized FFO in
the same manner. Accordingly, our Normalized FFO may not be comparable
to others.
In addition, because FFO and Normalized FFO exclude real estate
depreciation and amortization and real estate impairments, and capture
neither the changes in the value of our properties that result from use
or from market conditions, nor the level of capital expenditures and
leasing commissions necessary to maintain the operating performance of
our properties, all of which have real economic effect and could
materially impact our results from operations, the utility of FFO and
Normalized FFO as measures of our performance is limited. Therefore, FFO
and Normalized FFO should be considered only as supplements to net
income (loss) presented in accordance with GAAP as measures of our
performance. FFO and Normalized FFO should not be used as measures of
our liquidity or as indicative of funds available to fund our cash
needs, including our ability to make distributions. FFO and Normalized
FFO also should not be used as supplements to or substitutes for cash
flow from operating activities computed in accordance with GAAP.
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.
6Recurring 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.
7CSF leased is calculated by dividing CSF under signed leases
for available space (whether or not the contract has commenced billing)
by total CSF. CSF Leased differs from CSF Occupied presented in the Data
Center Portfolio table because the leased rate includes CSF for signed
leases that have not commenced billing.
8Stabilized properties include data halls that have been in
service for at least 24 months or are at least 85% leased.
9Gross asset value is defined as total assets plus
accumulated depreciation.
10Long-term debt and net debt exclude adjustments for
deferred financing costs and bond premiums. 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 and cash
equivalents.
11Liquidity is calculated as cash, cash equivalents, and
temporary cash investments on hand, plus the undrawn capacity on
CyrusOne's revolving credit facility and the delayed draw term loan.
About CyrusOne
CyrusOne (NASDAQ: CONE) is a high-growth real estate investment trust
(REIT) specializing 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 approximately 1,000 customers, including 200 Fortune
1000 companies.
With a track record of meeting and surpassing the aggressive
speed-to-market demands of hyperscale cloud providers, as well as the
expanding IT infrastructure requirements of the enterprise, CyrusOne
provides the flexibility, reliability, security, and connectivity that
foster business growth. CyrusOne offers a tailored, customer
service-focused platform and is committed to full transparency in
communication, management, and service delivery throughout its 45 data
centers worldwide. Additional information about CyrusOne can be found at www.CyrusOne.com.
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 approximately 1,000
customers, including 200 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 45 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 10-14 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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2101 Cedar Springs Road, Ste. 900
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Gary Wojtaszek, President and CEO
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Robert Jackson, EVP General Counsel & Secretary
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Dallas, Texas 75201
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Diane Morefield, EVP & Chief Financial Officer
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John Hatem, EVP Design, Construction & Operations
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Phone: (972) 350-0060
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Kevin Timmons, EVP & Chief Technology Officer
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Blake Hankins, Chief Information Officer
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Website: www.cyrusone.com
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Tesh Durvasula, EVP & Chief Commercial Officer
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John Gould, EVP Global Sales
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Jonathan Schildkraut, EVP & Chief Strategy Officer
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Brent Behrman, EVP Strategic Sales
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Kellie Teal-Guess, EVP & Chief People Officer
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Howard Garfield, SVP & 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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Citi
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Mike Rollins
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(212) 816-1116
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Cowen and Company
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Colby Synesael
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(646) 562-1355
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Credit Suisse
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Sami Badri
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(212) 538-1727
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Deutsche Bank
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Vin Chao
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(212) 250-6799
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Gabelli & Company
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Sergey Dluzhevskiy
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(914) 921-8355
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Guggenheim Securities, LLC
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Robert Gutman
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(212) 518-9148
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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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MoffettNathanson
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Nick Del Deo, CFA
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(212) 519-0025
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Morgan Stanley
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Simon Flannery
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(212) 761-6432
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MUFG Securities
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Stephen Bersey
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(212) 405-7032
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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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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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William Blair
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Jim Breen, CFA
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(617) 235-7513
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CyrusOne Inc.
Summary of Financial Data
(Dollars in millions, except per share amounts)
|
|
|
|
|
|
|
Three Months
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
March 31,
|
|
|
Growth %
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
Yr/Yr
|
Revenue
|
|
|
|
|
$
|
196.6
|
|
|
|
$
|
180.5
|
|
|
|
$
|
149.3
|
|
|
|
32
|
%
|
Net operating income
|
|
|
|
|
$
|
128.8
|
|
|
|
$
|
120.3
|
|
|
|
$
|
97.0
|
|
|
|
33
|
%
|
Net income (loss)
|
|
|
|
|
43.5
|
|
|
|
2.8
|
|
|
|
(30.4
|
)
|
|
|
n/m
|
|
Funds from operations ("FFO") - NAREIT defined
|
|
|
|
|
110.2
|
|
|
|
65.4
|
|
|
|
18.3
|
|
|
|
n/m
|
|
Normalized Funds from Operations ("Normalized FFO")
|
|
|
|
|
82.2
|
|
|
|
78.4
|
|
|
|
61.2
|
|
|
|
34
|
%
|
Weighted average number of common shares outstanding - diluted
|
|
|
|
|
96.6
|
|
|
|
93.5
|
|
|
|
84.5
|
|
|
|
14
|
%
|
Income (loss) per share - basic and diluted
|
|
|
|
|
$
|
0.45
|
|
|
|
$
|
0.03
|
|
|
|
$
|
(0.36
|
)
|
|
|
n/m
|
|
Normalized FFO per diluted common share
|
|
|
|
|
$
|
0.85
|
|
|
|
$
|
0.84
|
|
|
|
$
|
0.72
|
|
|
|
18
|
%
|
Adjusted EBITDA
|
|
|
|
|
109.5
|
|
|
|
104.2
|
|
|
|
80.7
|
|
|
|
36
|
%
|
Adjusted EBITDA as a % of Revenue
|
|
|
|
|
55.7
|
%
|
|
|
57.7
|
%
|
|
|
54.1
|
%
|
|
|
1.6 pts
|
|
|
|
|
|
|
|
As of
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
March 31,
|
|
|
Growth %
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
Yr/Yr
|
Balance Sheet Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross investment in real estate
|
|
|
|
|
$
|
3,954.6
|
|
|
|
$
|
3,840.8
|
|
|
|
$
|
3,237.5
|
|
|
|
22
|
%
|
Accumulated depreciation
|
|
|
|
|
(836.4
|
)
|
|
|
(782.4
|
)
|
|
|
(625.9
|
)
|
|
|
34
|
%
|
Total investment in real estate, net
|
|
|
|
|
3,118.2
|
|
|
|
3,058.4
|
|
|
|
2,611.6
|
|
|
|
19
|
%
|
Cash and cash equivalents
|
|
|
|
|
228.7
|
|
|
|
151.9
|
|
|
|
20.4
|
|
|
|
n/m
|
|
Market value of common equity
|
|
|
|
|
5,066.4
|
|
|
|
5,723.1
|
|
|
|
4,515.2
|
|
|
|
12
|
%
|
Net debt
|
|
|
|
|
1,987.2
|
|
|
|
1,958.2
|
|
|
|
1,747.0
|
|
|
|
14
|
%
|
Total enterprise value
|
|
|
|
|
7,053.6
|
|
|
|
7,681.3
|
|
|
|
6,262.2
|
|
|
|
13
|
%
|
Net debt to LQA Adjusted EBITDA
|
|
|
|
|
4.5x
|
|
|
|
4.7x
|
|
|
|
5.0x
|
|
|
(0.5)x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend Activity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per share
|
|
|
|
|
$
|
0.46
|
|
|
|
$
|
0.42
|
|
|
|
$
|
0.42
|
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data centers
|
|
|
|
|
45
|
|
|
|
45
|
|
|
|
39
|
|
|
|
15
|
%
|
Stabilized CSF (000)
|
|
|
|
|
3,024
|
|
|
|
2,653
|
|
|
|
2,293
|
|
|
|
32
|
%
|
Stabilized CSF % leased
|
|
|
|
|
92
|
%
|
|
|
93
|
%
|
|
|
92
|
%
|
|
|
0 pts
|
|
Total CSF (000)
|
|
|
|
|
3,348
|
|
|
|
3,267
|
|
|
|
2,477
|
|
|
|
35
|
%
|
Total CSF % leased
|
|
|
|
|
86
|
%
|
|
|
83
|
%
|
|
|
88
|
%
|
|
|
(2) pts
|
|
Total NRSF (000)
|
|
|
|
|
5,824
|
|
|
|
5,717
|
|
|
|
4,645
|
|
|
|
25
|
%
|
|
|
CyrusOne Inc.
Condensed Consolidated Statements of Operations
(Dollars in millions, except per share amounts)
(Unaudited)
|
|
|
|
|
|
|
Three Months
|
|
|
|
|
|
|
|
|
Ended March 31,
|
|
|
Change
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
$
|
|
|
%
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease and other revenues from customers
|
|
|
|
|
$
|
175.2
|
|
|
$
|
134.2
|
|
|
$
|
41.0
|
|
|
31
|
%
|
Metered power reimbursements
|
|
|
|
|
21.4
|
|
|
15.1
|
|
|
6.3
|
|
|
42
|
%
|
Revenue
|
|
|
|
|
196.6
|
|
|
149.3
|
|
|
47.3
|
|
|
32
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses
|
|
|
|
|
67.8
|
|
|
52.3
|
|
|
15.5
|
|
|
30
|
%
|
Sales and marketing
|
|
|
|
|
5.3
|
|
|
4.9
|
|
|
0.4
|
|
|
8
|
%
|
General and administrative
|
|
|
|
|
19.3
|
|
|
15.8
|
|
|
3.5
|
|
|
22
|
%
|
Depreciation and amortization
|
|
|
|
|
74.6
|
|
|
55.7
|
|
|
18.9
|
|
|
34
|
%
|
Transaction, acquisition and other integration expenses
|
|
|
|
|
1.9
|
|
|
0.8
|
|
|
1.1
|
|
|
138
|
%
|
Total operating expenses
|
|
|
|
|
168.9
|
|
|
129.5
|
|
|
39.4
|
|
|
30
|
%
|
Operating income
|
|
|
|
|
27.7
|
|
|
19.8
|
|
|
7.9
|
|
|
40
|
%
|
Interest expense
|
|
|
|
|
(20.8
|
)
|
|
(13.6
|
)
|
|
(7.2
|
)
|
|
53
|
%
|
Unrealized gain on marketable equity investment
|
|
|
|
|
40.5
|
|
|
-
|
|
|
40.5
|
|
|
n/m
|
|
Loss on early extinguishment of debt
|
|
|
|
|
(3.1
|
)
|
|
(36.2
|
)
|
|
33.1
|
|
|
n/m
|
|
Net income (loss) before income taxes
|
|
|
|
|
44.3
|
|
|
(30.0
|
)
|
|
74.3
|
|
|
n/m
|
|
Income tax expense
|
|
|
|
|
(0.8
|
)
|
|
(0.4
|
)
|
|
(0.4
|
)
|
|
100
|
%
|
Net income (loss)
|
|
|
|
|
$
|
43.5
|
|
|
$
|
(30.4
|
)
|
|
$
|
73.9
|
|
|
n/m
|
|
Income (loss) per share - basic and diluted
|
|
|
|
|
$
|
0.45
|
|
|
$
|
(0.36
|
)
|
|
$
|
0.81
|
|
|
n/m
|
|
|
|
CyrusOne Inc.
Condensed Consolidated Balance Sheets
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
Change
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
$
|
|
|
%
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land
|
|
|
|
|
$
|
104.6
|
|
|
|
$
|
104.6
|
|
|
|
$
|
-
|
|
|
|
n/m
|
Buildings and improvements
|
|
|
|
|
1,400.8
|
|
|
|
1,371.4
|
|
|
|
29.4
|
|
|
|
2
|
%
|
Equipment
|
|
|
|
|
1,959.5
|
|
|
|
1,813.9
|
|
|
|
145.6
|
|
|
|
8
|
%
|
Gross operating real estate
|
|
|
|
|
3,464.9
|
|
|
|
3,289.9
|
|
|
|
175.0
|
|
|
|
5
|
%
|
Less accumulated depreciation
|
|
|
|
|
(836.4
|
)
|
|
|
(782.4
|
)
|
|
|
(54.0
|
)
|
|
|
7
|
%
|
Net operating real estate
|
|
|
|
|
2,628.5
|
|
|
|
2,507.5
|
|
|
|
121.0
|
|
|
|
5
|
%
|
Construction in progress, including land under development
|
|
|
|
|
435.3
|
|
|
|
487.1
|
|
|
|
(51.8
|
)
|
|
|
(11
|
)%
|
Land held for future development
|
|
|
|
|
54.4
|
|
|
|
63.8
|
|
|
|
(9.4
|
)
|
|
|
(15
|
)%
|
Total investment in real estate, net
|
|
|
|
|
3,118.2
|
|
|
|
3,058.4
|
|
|
|
59.8
|
|
|
|
2
|
%
|
Cash and cash equivalents
|
|
|
|
|
228.7
|
|
|
|
151.9
|
|
|
|
76.8
|
|
|
|
51
|
%
|
Rent and other receivables, net
|
|
|
|
|
93.1
|
|
|
|
87.2
|
|
|
|
5.9
|
|
|
|
7
|
%
|
Goodwill
|
|
|
|
|
455.1
|
|
|
|
455.1
|
|
|
|
-
|
|
|
|
-
|
%
|
Intangible assets, net
|
|
|
|
|
196.8
|
|
|
|
203.0
|
|
|
|
(6.2
|
)
|
|
|
(3
|
)%
|
Other assets
|
|
|
|
|
406.4
|
|
|
|
356.5
|
|
|
|
49.9
|
|
|
|
14
|
%
|
Total assets
|
|
|
|
|
$
|
4,498.3
|
|
|
|
$
|
4,312.1
|
|
|
|
$
|
186.2
|
|
|
|
4
|
%
|
Liabilities and equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, net
|
|
|
|
|
$
|
2,178.3
|
|
|
|
$
|
2,089.4
|
|
|
|
$
|
88.9
|
|
|
|
4
|
%
|
Capital lease obligations
|
|
|
|
|
15.9
|
|
|
|
10.1
|
|
|
|
5.8
|
|
|
|
57
|
%
|
Lease financing arrangements
|
|
|
|
|
131.3
|
|
|
|
131.9
|
|
|
|
(0.6
|
)
|
|
|
-
|
%
|
Construction costs payable
|
|
|
|
|
89.0
|
|
|
|
115.5
|
|
|
|
(26.5
|
)
|
|
|
(23
|
)%
|
Accounts payable and accrued expenses
|
|
|
|
|
66.7
|
|
|
|
97.9
|
|
|
|
(31.2
|
)
|
|
|
(32
|
)%
|
Dividends payable
|
|
|
|
|
46.4
|
|
|
|
41.8
|
|
|
|
4.6
|
|
|
|
11
|
%
|
Deferred revenue and prepaid rents
|
|
|
|
|
116.1
|
|
|
|
111.6
|
|
|
|
4.5
|
|
|
|
4
|
%
|
Total liabilities
|
|
|
|
|
2,643.7
|
|
|
|
2,598.2
|
|
|
|
45.5
|
|
|
|
2
|
%
|
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
98,933,109 and 96,137,874
shares issued and outstanding at March 31, 2018 and December 31,
2017, respectively
|
|
|
|
|
1.0
|
|
|
|
1.0
|
|
|
|
-
|
|
|
|
n/m
|
Additional paid in capital
|
|
|
|
|
2,268.0
|
|
|
|
2,125.6
|
|
|
|
142.4
|
|
|
|
7
|
%
|
Accumulated deficit
|
|
|
|
|
(413.1
|
)
|
|
|
(486.9
|
)
|
|
|
73.8
|
|
|
|
(15
|
)%
|
Accumulated other comprehensive income (loss)
|
|
|
|
|
(1.3
|
)
|
|
|
74.2
|
|
|
|
(75.5
|
)
|
|
|
-
|
%
|
Total stockholders' equity
|
|
|
|
|
1,854.6
|
|
|
|
1,713.9
|
|
|
|
140.7
|
|
|
|
8
|
%
|
Total liabilities and equity
|
|
|
|
|
$
|
4,498.3
|
|
|
|
$
|
4,312.1
|
|
|
|
$
|
186.2
|
|
|
|
4
|
%
|
|
|
CyrusOne Inc.
Condensed Consolidated Statements of Operations
(Dollars in millions, except per share amounts)
(Unaudited)
|
|
For the three months ended:
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease and other revenues from customers
|
|
|
|
|
$
|
175.2
|
|
|
|
$
|
161.6
|
|
|
|
$
|
155.5
|
|
|
|
$
|
151.1
|
|
|
|
$
|
134.2
|
|
Metered power reimbursements
|
|
|
|
|
21.4
|
|
|
|
18.9
|
|
|
|
19.8
|
|
|
|
15.8
|
|
|
|
15.1
|
|
Revenue
|
|
|
|
|
196.6
|
|
|
|
180.5
|
|
|
|
175.3
|
|
|
|
166.9
|
|
|
|
149.3
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses
|
|
|
|
|
67.8
|
|
|
|
60.2
|
|
|
|
63.0
|
|
|
|
59.6
|
|
|
|
52.3
|
|
Sales and marketing
|
|
|
|
|
5.3
|
|
|
|
3.9
|
|
|
|
3.9
|
|
|
|
4.3
|
|
|
|
4.9
|
|
General and administrative
|
|
|
|
|
19.3
|
|
|
|
16.4
|
|
|
|
17.5
|
|
|
|
17.3
|
|
|
|
15.8
|
|
Depreciation and amortization
|
|
|
|
|
74.6
|
|
|
|
70.8
|
|
|
|
68.7
|
|
|
|
63.7
|
|
|
|
55.7
|
|
Transaction, acquisition and other integration expenses
|
|
|
|
|
1.9
|
|
|
|
5.3
|
|
|
|
4.1
|
|
|
|
1.7
|
|
|
|
0.8
|
|
Asset impairments
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
54.4
|
|
|
|
3.6
|
|
|
|
-
|
|
Total operating expenses
|
|
|
|
|
168.9
|
|
|
|
156.6
|
|
|
|
211.6
|
|
|
|
150.2
|
|
|
|
129.5
|
|
Operating income
|
|
|
|
|
27.7
|
|
|
|
23.9
|
|
|
|
(36.3
|
)
|
|
|
16.7
|
|
|
|
19.8
|
|
Interest expense
|
|
|
|
|
(20.8
|
)
|
|
|
(20.1
|
)
|
|
|
(17.9
|
)
|
|
|
(16.5
|
)
|
|
|
(13.6
|
)
|
Unrealized gain on marketable equity investment
|
|
|
|
|
40.5
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Loss on early extinguishment of debt
|
|
|
|
|
(3.1
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.3
|
)
|
|
|
(36.2
|
)
|
Net income (loss) before income taxes
|
|
|
|
|
44.3
|
|
|
|
3.8
|
|
|
|
(54.2
|
)
|
|
|
(0.1
|
)
|
|
|
(30.0
|
)
|
Income tax expense
|
|
|
|
|
(0.8
|
)
|
|
|
(1.0
|
)
|
|
|
(0.9
|
)
|
|
|
(0.7
|
)
|
|
|
(0.4
|
)
|
Net income (loss)
|
|
|
|
|
$
|
43.5
|
|
|
|
$
|
2.8
|
|
|
|
$
|
(55.1
|
)
|
|
|
$
|
(0.8
|
)
|
|
|
$
|
(30.4
|
)
|
Income (loss) per share - basic and diluted
|
|
|
|
|
$
|
0.45
|
|
|
|
$
|
0.03
|
|
|
|
$
|
(0.61
|
)
|
|
|
$
|
(0.01
|
)
|
|
|
$
|
(0.36
|
)
|
|
|
CyrusOne Inc.
Condensed Consolidated Balance Sheets
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land
|
|
|
|
|
$
|
104.6
|
|
|
|
$
|
104.6
|
|
|
|
$
|
102.8
|
|
|
|
$
|
94.0
|
|
|
|
$
|
79.8
|
|
Buildings and improvements
|
|
|
|
|
1,400.8
|
|
|
|
1,371.4
|
|
|
|
1,344.0
|
|
|
|
1,291.7
|
|
|
|
1,270.9
|
|
Equipment
|
|
|
|
|
1,959.5
|
|
|
|
1,813.9
|
|
|
|
1,721.2
|
|
|
|
1,525.3
|
|
|
|
1,438.0
|
|
Gross operating real estate
|
|
|
|
|
3,464.9
|
|
|
|
3,289.9
|
|
|
|
3,168.0
|
|
|
|
2,911.0
|
|
|
|
2,788.7
|
|
Less accumulated depreciation
|
|
|
|
|
(836.4
|
)
|
|
|
(782.4
|
)
|
|
|
(722.1
|
)
|
|
|
(679.6
|
)
|
|
|
(625.9
|
)
|
Net operating real estate
|
|
|
|
|
2,628.5
|
|
|
|
2,507.5
|
|
|
|
2,445.9
|
|
|
|
2,231.4
|
|
|
|
2,162.8
|
|
Construction in progress, including land under development
|
|
|
|
|
435.3
|
|
|
|
487.1
|
|
|
|
429.4
|
|
|
|
569.1
|
|
|
|
399.2
|
|
Land held for future development
|
|
|
|
|
54.4
|
|
|
|
63.8
|
|
|
|
58.7
|
|
|
|
52.7
|
|
|
|
49.6
|
|
Total investment in real estate, net
|
|
|
|
|
3,118.2
|
|
|
|
3,058.4
|
|
|
|
2,934.0
|
|
|
|
2,853.2
|
|
|
|
2,611.6
|
|
Cash and cash equivalents
|
|
|
|
|
228.7
|
|
|
|
151.9
|
|
|
|
24.6
|
|
|
|
40.0
|
|
|
|
20.4
|
|
Rent and other receivables, net
|
|
|
|
|
93.1
|
|
|
|
87.2
|
|
|
|
89.2
|
|
|
|
88.7
|
|
|
|
83.7
|
|
Restricted cash
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.1
|
|
|
|
0.8
|
|
|
|
0.6
|
|
Goodwill
|
|
|
|
|
455.1
|
|
|
|
455.1
|
|
|
|
455.1
|
|
|
|
455.1
|
|
|
|
455.1
|
|
Intangible assets, net
|
|
|
|
|
196.8
|
|
|
|
203.0
|
|
|
|
209.7
|
|
|
|
216.3
|
|
|
|
223.1
|
|
Other assets
|
|
|
|
|
406.4
|
|
|
|
356.5
|
|
|
|
171.1
|
|
|
|
162.5
|
|
|
|
149.3
|
|
Total assets
|
|
|
|
|
$
|
4,498.3
|
|
|
|
$
|
4,312.1
|
|
|
|
$
|
3,883.8
|
|
|
|
$
|
3,816.6
|
|
|
|
$
|
3,543.8
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, net
|
|
|
|
|
$
|
2,178.3
|
|
|
|
$
|
2,089.4
|
|
|
|
$
|
2,013.7
|
|
|
|
$
|
1,832.5
|
|
|
|
$
|
1,731.8
|
|
Capital lease obligations
|
|
|
|
|
15.9
|
|
|
|
10.1
|
|
|
|
10.9
|
|
|
|
11.7
|
|
|
|
12.4
|
|
Lease financing arrangements
|
|
|
|
|
131.3
|
|
|
|
131.9
|
|
|
|
133.3
|
|
|
|
134.0
|
|
|
|
134.5
|
|
Construction costs payable
|
|
|
|
|
89.0
|
|
|
|
115.5
|
|
|
|
133.6
|
|
|
|
163.4
|
|
|
|
174.3
|
|
Accounts payable and accrued expenses
|
|
|
|
|
66.7
|
|
|
|
97.9
|
|
|
|
71.5
|
|
|
|
73.2
|
|
|
|
56.2
|
|
Dividends payable
|
|
|
|
|
46.4
|
|
|
|
41.8
|
|
|
|
39.6
|
|
|
|
39.4
|
|
|
|
37.7
|
|
Deferred revenue and prepaid rents
|
|
|
|
|
116.1
|
|
|
|
111.6
|
|
|
|
104.8
|
|
|
|
96.5
|
|
|
|
93.3
|
|
Total liabilities
|
|
|
|
|
2,643.7
|
|
|
|
2,598.2
|
|
|
|
2,507.4
|
|
|
|
2,350.7
|
|
|
|
2,240.2
|
|
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
98,933,109 and 96,137,874 shares issued and outstanding at March
31, 2018
and December 31, 2017, respectively
|
|
|
|
|
1.0
|
|
|
|
1.0
|
|
|
|
0.9
|
|
|
|
0.9
|
|
|
|
0.9
|
|
Additional paid in capital
|
|
|
|
|
2,268.0
|
|
|
|
2,125.6
|
|
|
|
1,826.0
|
|
|
|
1,821.9
|
|
|
|
1,620.5
|
|
Accumulated deficit
|
|
|
|
|
(413.1
|
)
|
|
|
(486.9
|
)
|
|
|
(449.2
|
)
|
|
|
(355.7
|
)
|
|
|
(316.5
|
)
|
Accumulated other comprehensive loss
|
|
|
|
|
(1.3
|
)
|
|
|
74.2
|
|
|
|
(1.3
|
)
|
|
|
(1.2
|
)
|
|
|
(1.3
|
)
|
Total stockholders' equity
|
|
|
|
|
1,854.6
|
|
|
|
1,713.9
|
|
|
|
1,376.4
|
|
|
|
1,465.9
|
|
|
|
1,303.6
|
|
Total liabilities and equity
|
|
|
|
|
$
|
4,498.3
|
|
|
|
$
|
4,312.1
|
|
|
|
$
|
3,883.8
|
|
|
|
$
|
3,816.6
|
|
|
|
$
|
3,543.8
|
|
|
|
CyrusOne Inc.
Condensed Consolidated Statements of Cash Flow
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
Three Months
Ended March 31,
2018
|
|
|
Three Months
Ended March 31,
2017
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
|
$
|
43.5
|
|
|
|
$
|
(30.4
|
)
|
Adjustments to reconcile net income (loss) to net cash provided
by operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
74.6
|
|
|
|
55.7
|
|
Non-cash interest expense, net
|
|
|
|
|
0.7
|
|
|
|
0.9
|
|
Stock-based compensation expense
|
|
|
|
|
3.9
|
|
|
|
3.7
|
|
Provision for bad debt
|
|
|
|
|
0.5
|
|
|
|
-
|
|
Unrealized gain on marketable equity investment
|
|
|
|
|
(40.5
|
)
|
|
|
-
|
|
Loss on early extinguishment of debt
|
|
|
|
|
3.1
|
|
|
|
36.2
|
|
Other
|
|
|
|
|
-
|
|
|
|
0.2
|
|
Change in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Rent and other receivables, net and other assets
|
|
|
|
|
(18.0
|
)
|
|
|
(20.0
|
)
|
Accounts payable and accrued expenses
|
|
|
|
|
(28.9
|
)
|
|
|
(6.8
|
)
|
Deferred revenue and prepaid rents
|
|
|
|
|
5.3
|
|
|
|
15.7
|
|
Net cash provided by operating activities
|
|
|
|
|
44.2
|
|
|
|
55.2
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
Capital expenditures - asset acquisitions, net of cash acquired
|
|
|
|
|
-
|
|
|
|
(492.3
|
)
|
Capital expenditures - other development
|
|
|
|
|
(145.2
|
)
|
|
|
(182.5
|
)
|
Net cash used in investing activities
|
|
|
|
|
(145.2
|
)
|
|
|
(674.8
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
Issuance of common stock, net
|
|
|
|
|
142.9
|
|
|
|
211.0
|
|
Dividends paid
|
|
|
|
|
(41.0
|
)
|
|
|
(32.4
|
)
|
Proceeds from debt, net
|
|
|
|
|
985.6
|
|
|
|
1,200.9
|
|
Payments on debt
|
|
|
|
|
(902.7
|
)
|
|
|
(744.8
|
)
|
Payments on capital leases and lease financing arrangements
|
|
|
|
|
(2.6
|
)
|
|
|
(2.3
|
)
|
Tax payment upon exercise of equity awards
|
|
|
|
|
(4.4
|
)
|
|
|
(6.4
|
)
|
Net cash provided by financing activities
|
|
|
|
|
177.8
|
|
|
|
626.0
|
|
Net increase (decrease) in cash, cash equivalents and restricted cash
|
|
|
|
|
76.8
|
|
|
|
6.4
|
|
Cash, cash equivalents and restricted cash at beginning of period
|
|
|
|
|
151.9
|
|
|
|
14.6
|
|
Cash, cash equivalents and restricted cash at end of period
|
|
|
|
|
$
|
228.7
|
|
|
|
$
|
21.0
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
Cash paid for interest, net of amounts capitalized of $5.1 million
and $3.6 million in 2018 and 2017, respectively
|
|
|
|
|
$
|
42.2
|
|
|
|
$
|
18.3
|
|
Non-cash investing and financing activities:
|
|
|
|
|
|
|
|
|
Construction costs and other payables
|
|
|
|
|
89.0
|
|
|
|
174.3
|
|
Dividends payable
|
|
|
|
|
46.4
|
|
|
|
37.7
|
|
Real estate additions from entering into and modifying capital leases
|
|
|
|
|
6.6
|
|
|
|
-
|
|
Transfer of land held for future development to construction in
progress
|
|
|
|
|
9.4
|
|
|
|
4.0
|
|
Transfer of real estate to construction in progress from operating
real estate
|
|
|
|
|
178.7
|
|
|
|
305.3
|
|
|
|
CyrusOne Inc.
Net Operating Income and Reconciliation of Net Income (Loss) to
Adjusted EBITDA
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
March 31,
|
|
|
Change
|
|
|
March 31,
|
|
|
December 31,
|
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
$
|
|
|
%
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
Net Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
$
|
196.6
|
|
|
|
$
|
149.3
|
|
|
|
$
|
47.3
|
|
|
|
32%
|
|
|
$
|
196.6
|
|
|
|
$
|
180.5
|
|
|
|
$
|
175.3
|
|
|
|
$
|
166.9
|
|
|
|
$
|
149.3
|
|
Property operating expenses
|
|
|
|
|
67.8
|
|
|
|
52.3
|
|
|
|
15.5
|
|
|
|
30%
|
|
|
67.8
|
|
|
|
60.2
|
|
|
|
63.0
|
|
|
|
59.6
|
|
|
|
52.3
|
|
Net Operating Income (NOI)
|
|
|
|
|
$
|
128.8
|
|
|
|
$
|
97.0
|
|
|
|
$
|
31.8
|
|
|
|
33%
|
|
|
$
|
128.8
|
|
|
|
$
|
120.3
|
|
|
|
$
|
112.3
|
|
|
|
$
|
107.3
|
|
|
|
$
|
97.0
|
|
NOI as a % of Revenue
|
|
|
|
|
65.5
|
%
|
|
|
65.0
|
%
|
|
|
|
|
|
|
|
|
65.5
|
%
|
|
|
66.6
|
%
|
|
|
64.1
|
%
|
|
|
64.3
|
%
|
|
|
65.0
|
%
|
Reconciliation of Net Income (Loss) to Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
|
$
|
43.5
|
|
|
|
$
|
(30.4
|
)
|
|
|
$
|
73.9
|
|
|
|
n/m
|
|
|
$
|
43.5
|
|
|
|
$
|
2.8
|
|
|
|
$
|
(55.1
|
)
|
|
|
$
|
(0.8
|
)
|
|
|
$
|
(30.4
|
)
|
Interest expense
|
|
|
|
|
20.8
|
|
|
|
13.6
|
|
|
|
7.2
|
|
|
|
53%
|
|
|
20.8
|
|
|
|
20.1
|
|
|
|
17.9
|
|
|
|
16.5
|
|
|
|
13.6
|
|
Income tax expense
|
|
|
|
|
0.8
|
|
|
|
0.4
|
|
|
|
0.4
|
|
|
|
100%
|
|
|
0.8
|
|
|
|
1.0
|
|
|
|
0.9
|
|
|
|
0.7
|
|
|
|
0.4
|
|
Depreciation and amortization
|
|
|
|
|
74.6
|
|
|
|
55.7
|
|
|
|
18.9
|
|
|
|
34%
|
|
|
74.6
|
|
|
|
70.8
|
|
|
|
68.7
|
|
|
|
63.7
|
|
|
|
55.7
|
|
Asset impairments and loss on disposals
|
|
|
|
|
-
|
|
|
|
0.2
|
|
|
|
(0.2
|
)
|
|
|
n/m
|
|
|
-
|
|
|
|
0.2
|
|
|
|
55.5
|
|
|
|
3.6
|
|
|
|
0.2
|
|
EBITDA (NAREIT definition)(a)
|
|
|
|
|
$
|
139.7
|
|
|
|
$
|
39.5
|
|
|
|
100.2
|
|
|
|
n/m
|
|
|
$
|
139.7
|
|
|
|
$
|
94.9
|
|
|
|
$
|
87.9
|
|
|
|
$
|
83.7
|
|
|
|
$
|
39.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction, acquisition and other integration expenses
|
|
|
|
|
1.9
|
|
|
|
0.6
|
|
|
|
1.3
|
|
|
|
n/m
|
|
|
1.9
|
|
|
|
5.1
|
|
|
|
3.0
|
|
|
|
1.7
|
|
|
|
0.6
|
|
Legal claim costs
|
|
|
|
|
0.2
|
|
|
|
0.2
|
|
|
|
-
|
|
|
|
n/m
|
|
|
0.2
|
|
|
|
-
|
|
|
|
0.3
|
|
|
|
0.6
|
|
|
|
0.2
|
|
Stock-based compensation expense
|
|
|
|
|
3.9
|
|
|
|
3.7
|
|
|
|
0.2
|
|
|
|
5%
|
|
|
3.9
|
|
|
|
3.1
|
|
|
|
3.9
|
|
|
|
4.0
|
|
|
|
3.7
|
|
Severance and management transition costs
|
|
|
|
|
0.7
|
|
|
|
0.5
|
|
|
|
0.2
|
|
|
|
40%
|
|
|
0.7
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.5
|
|
Loss on early extinguishment of debt
|
|
|
|
|
3.1
|
|
|
|
36.2
|
|
|
|
(33.1
|
)
|
|
|
n/m
|
|
|
3.1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.3
|
|
|
|
36.2
|
|
New accounting standards and system implementation costs
|
|
|
|
|
0.5
|
|
|
|
-
|
|
|
|
0.5
|
|
|
|
n/m
|
|
|
0.5
|
|
|
|
1.1
|
|
|
|
0.8
|
|
|
|
0.5
|
|
|
|
-
|
|
Unrealized gain on marketable equity investments
|
|
|
|
|
(40.5
|
)
|
|
|
-
|
|
|
|
(40.5
|
)
|
|
|
n/m
|
|
|
(40.5
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Adjusted EBITDA
|
|
|
|
|
$
|
109.5
|
|
|
|
$
|
80.7
|
|
|
|
28.8
|
|
|
|
36%
|
|
|
$
|
109.5
|
|
|
|
$
|
104.2
|
|
|
|
$
|
95.9
|
|
|
|
$
|
90.8
|
|
|
|
$
|
80.7
|
|
Adjusted EBITDA as a % of Revenue
|
|
|
|
|
55.7
|
%
|
|
|
54.1
|
%
|
|
|
|
|
|
|
|
|
55.7
|
%
|
|
|
57.7
|
%
|
|
|
54.7
|
%
|
|
|
54.4
|
%
|
|
|
54.1
|
%
|
|
(a)
|
|
We calculate Earnings Before Interest, Taxes, Depreciation and
Amortization for Real Estate (EBITDAre) as GAAP net income (loss)
plus interest expense, income tax expense, depreciation and
amortization plus or minus losses and gains on the disposition of
depreciable property, plus asset impairments. While it is consistent
with the definition of EBITDAre promulgated by the National
Association of Real Estate Investment Trusts ("NAREIT"), our
computation of EBITDAre may differ from the methodology for
calculating EBITDAre used by other REITs. Accordingly, our EBITDAre
may not be comparable to others.
|
|
|
CyrusOne Inc.
Reconciliation of Net Income (Loss) to Net Operating Income
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
Change
|
|
|
|
|
2018
|
|
|
2017
|
|
|
$
|
|
|
%
|
Net Income (Loss)
|
|
|
|
|
$
|
43.5
|
|
|
|
$
|
(30.4
|
)
|
|
|
$
|
73.9
|
|
|
|
(243
|
)%
|
Sales and marketing
|
|
|
|
|
5.3
|
|
|
|
4.9
|
|
|
|
0.4
|
|
|
|
8
|
%
|
General and administrative
|
|
|
|
|
19.3
|
|
|
|
15.8
|
|
|
|
3.5
|
|
|
|
22
|
%
|
Depreciation and amortization
|
|
|
|
|
74.6
|
|
|
|
55.7
|
|
|
|
18.9
|
|
|
|
34
|
%
|
Transaction, acquisition and other integration expenses
|
|
|
|
|
1.9
|
|
|
|
0.8
|
|
|
|
1.1
|
|
|
|
138
|
%
|
Interest expense
|
|
|
|
|
20.8
|
|
|
|
13.6
|
|
|
|
7.2
|
|
|
|
53
|
%
|
Unrealized gain on marketable equity securities
|
|
|
|
|
(40.5
|
)
|
|
|
-
|
|
|
|
(40.5
|
)
|
|
|
n/m
|
|
Loss on early extinguishment of debt
|
|
|
|
|
3.1
|
|
|
|
36.2
|
|
|
|
(33.1
|
)
|
|
|
(91
|
)%
|
Income tax expense
|
|
|
|
|
0.8
|
|
|
|
0.4
|
|
|
|
0.4
|
|
|
|
100
|
%
|
Net Operating Income
|
|
|
|
|
$
|
128.8
|
|
|
|
$
|
97.0
|
|
|
|
$
|
31.8
|
|
|
|
33
|
%
|
|
|
CyrusOne Inc.
Reconciliation of Net Income (Loss) to FFO and Normalized FFO
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
March 31,
|
|
|
Change
|
|
|
March 31,
|
|
|
December 31,
|
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
$
|
|
|
%
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
Reconciliation of Net Income (Loss) to FFO and Normalized FFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
|
$
|
43.5
|
|
|
|
$
|
(30.4
|
)
|
|
|
$
|
73.9
|
|
|
|
n/m
|
|
|
|
$
|
43.5
|
|
|
|
$
|
2.8
|
|
|
|
$
|
(55.1
|
)
|
|
|
$
|
(0.8
|
)
|
|
|
$
|
(30.4
|
)
|
Real estate depreciation and amortization
|
|
|
|
|
66.7
|
|
|
|
48.7
|
|
|
|
18.0
|
|
|
|
37
|
%
|
|
|
66.7
|
|
|
|
62.6
|
|
|
|
60.3
|
|
|
|
55.3
|
|
|
|
48.7
|
|
Asset impairments
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
n/m
|
|
|
|
-
|
|
|
|
-
|
|
|
|
54.4
|
|
|
|
3.6
|
|
|
|
-
|
|
Funds from Operations ("FFO") - NAREIT defined
|
|
|
|
|
$
|
110.2
|
|
|
|
$
|
18.3
|
|
|
|
$
|
91.9
|
|
|
|
n/m
|
|
|
|
$
|
110.2
|
|
|
|
$
|
65.4
|
|
|
|
$
|
59.6
|
|
|
|
$
|
58.1
|
|
|
|
$
|
18.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on early extinguishment of debt
|
|
|
|
|
3.1
|
|
|
|
36.2
|
|
|
|
(33.1
|
)
|
|
|
n/m
|
|
|
|
3.1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.3
|
|
|
|
36.2
|
|
Unrealized gain on marketable equity investments
|
|
|
|
|
(40.5
|
)
|
|
|
-
|
|
|
|
(40.5
|
)
|
|
|
n/m
|
|
|
|
(40.5
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
New accounting standards and system implementation costs
|
|
|
|
|
0.5
|
|
|
|
-
|
|
|
|
0.5
|
|
|
|
n/m
|
|
|
|
0.5
|
|
|
|
1.1
|
|
|
|
0.8
|
|
|
|
0.5
|
|
|
|
-
|
|
Amortization of customer relationship intangibles
|
|
|
|
|
6.1
|
|
|
|
5.2
|
|
|
|
0.9
|
|
|
|
17
|
%
|
|
|
6.1
|
|
|
|
6.6
|
|
|
|
6.6
|
|
|
|
6.7
|
|
|
|
5.2
|
|
Transaction, acquisition and other integration expenses
|
|
|
|
|
1.9
|
|
|
|
0.8
|
|
|
|
1.1
|
|
|
|
138
|
%
|
|
|
1.9
|
|
|
|
5.3
|
|
|
|
4.1
|
|
|
|
1.7
|
|
|
|
0.8
|
|
Severance and management transition costs
|
|
|
|
|
0.7
|
|
|
|
0.5
|
|
|
|
0.2
|
|
|
|
40
|
%
|
|
|
0.7
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.5
|
|
Legal claim costs
|
|
|
|
|
0.2
|
|
|
|
0.2
|
|
|
|
-
|
|
|
|
n/m
|
|
|
|
0.2
|
|
|
|
-
|
|
|
|
0.3
|
|
|
|
0.6
|
|
|
|
0.2
|
|
Normalized Funds from Operations (Normalized FFO)
|
|
|
|
|
$
|
82.2
|
|
|
|
$
|
61.2
|
|
|
|
$
|
21.0
|
|
|
|
34
|
%
|
|
|
$
|
82.2
|
|
|
|
$
|
78.4
|
|
|
|
$
|
71.4
|
|
|
|
$
|
67.9
|
|
|
|
$
|
61.2
|
|
Normalized FFO per diluted common share
|
|
|
|
|
$
|
0.85
|
|
|
|
$
|
0.72
|
|
|
|
$
|
0.13
|
|
|
|
18
|
%
|
|
|
$
|
0.85
|
|
|
|
$
|
0.84
|
|
|
|
$
|
0.79
|
|
|
|
$
|
0.77
|
|
|
|
$
|
0.72
|
|
Weighted average diluted common shares outstanding
|
|
|
|
|
96.6
|
|
|
|
84.5
|
|
|
|
12.1
|
|
|
|
14
|
%
|
|
|
96.6
|
|
|
|
93.5
|
|
|
|
90.9
|
|
|
|
88.5
|
|
|
|
84.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of deferred financing costs and bond premium
|
|
|
|
|
0.7
|
|
|
|
1.0
|
|
|
|
(0.3
|
)
|
|
|
(30
|
)%
|
|
|
0.7
|
|
|
|
0.9
|
|
|
|
1.2
|
|
|
|
1.2
|
|
|
|
1.0
|
|
Stock-based compensation expense
|
|
|
|
|
3.9
|
|
|
|
3.7
|
|
|
|
0.2
|
|
|
|
5
|
%
|
|
|
3.9
|
|
|
|
3.1
|
|
|
|
3.9
|
|
|
|
4.0
|
|
|
|
3.7
|
|
Non-real estate depreciation and amortization
|
|
|
|
|
1.8
|
|
|
|
1.8
|
|
|
|
-
|
|
|
|
n/m
|
|
|
|
1.8
|
|
|
|
1.6
|
|
|
|
1.8
|
|
|
|
1.7
|
|
|
|
1.8
|
|
Straight line rent adjustments(a)
|
|
|
|
|
(7.2
|
)
|
|
|
(9.7
|
)
|
|
|
2.5
|
|
|
|
(26
|
)%
|
|
|
(7.2
|
)
|
|
|
(7.4
|
)
|
|
|
(6.4
|
)
|
|
|
(8.8
|
)
|
|
|
(9.7
|
)
|
Deferred revenue, primarily installation revenue(b)
|
|
|
|
|
3.2
|
|
|
|
0.3
|
|
|
|
2.9
|
|
|
|
n/m
|
|
|
|
3.2
|
|
|
|
3.8
|
|
|
|
12.9
|
|
|
|
6.1
|
|
|
|
0.3
|
|
Leasing commissions
|
|
|
|
|
(3.2
|
)
|
|
|
(3.9
|
)
|
|
|
0.7
|
|
|
|
(18
|
)%
|
|
|
(3.2
|
)
|
|
|
(3.5
|
)
|
|
|
(6.1
|
)
|
|
|
(3.8
|
)
|
|
|
(3.9
|
)
|
Recurring capital expenditures
|
|
|
|
|
(2.4
|
)
|
|
|
(1.5
|
)
|
|
|
(0.9
|
)
|
|
|
60
|
%
|
|
|
(2.4
|
)
|
|
|
(1.6
|
)
|
|
|
(0.6
|
)
|
|
|
(0.7
|
)
|
|
|
(1.5
|
)
|
|
(a)
|
|
Straight line rent adjustments:
|
|
|
Represents the difference between revenue recognized on a straight
line basis under U.S. GAAP over the term of the lease compared to
the contractual rental payments. Lease agreements typically include
payments that escalate over the term of the contract or, to a lesser
extent, a ramp period.
|
|
|
|
(b)
|
|
Deferred revenue, primarily installation revenue:
|
|
|
Represents payments received from customers in excess of revenue
recognized under U.S. GAAP. This primarily relates to specific
customer-requested buildouts that CyrusOne does not include in its
basic data center design. The company charges customers up front for
these buildouts rather than incorporating into rent and billing them
over time. The cash payments for these buildouts are non-recurring,
and may vary significantly from quarter to quarter, but revenue is
amortized over the life of the lease.
|
|
|
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
March 31, 2018
|
|
|
Market Value
Equivalents
(in millions)
|
Common shares
|
|
|
|
|
98,933,109
|
|
|
|
$
|
51.21
|
|
|
|
$
|
5,066.4
|
Net Debt
|
|
|
|
|
|
|
|
|
|
|
1,987.2
|
Total Enterprise Value (TEV)
|
|
|
|
|
|
|
|
|
|
|
$
|
7,053.6
|
|
Reconciliation of Net Debt
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
(dollars in millions)
|
|
|
|
|
2018
|
|
|
2017
|
Long-term debt(a)
|
|
|
|
|
$
|
2,200.0
|
|
|
|
$
|
2,100.0
|
|
Capital lease obligations
|
|
|
|
|
15.9
|
|
|
|
10.1
|
|
Less:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
(228.7
|
)
|
|
|
(151.9
|
)
|
Net Debt
|
|
|
|
|
$
|
1,987.2
|
|
|
|
$
|
1,958.2
|
|
|
(a) Excludes adjustment for deferred financing costs.
|
|
Debt Schedule (as of
March 31, 2018)
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt:
|
|
|
|
|
Amount
|
|
|
Interest Rate
|
|
|
Maturity Date
|
Revolving credit facility
|
|
|
|
|
$
|
-
|
|
|
|
L + 145bps
|
|
|
March 2023(a)
|
Term loan
|
|
|
|
|
700.0
|
|
|
|
3.28%
|
|
|
March 2023
|
Term loan
|
|
|
|
|
300.0
|
|
|
|
3.58%
|
|
|
March 2025
|
5.000% senior notes due 2024, excluding bond premium
|
|
|
|
|
700.0
|
|
|
|
5.000%
|
|
|
March 2024
|
5.375% senior notes due 2027, excluding bond premium
|
|
|
|
|
500.0
|
|
|
|
5.375%
|
|
|
March 2027
|
Total long-term debt(b)
|
|
|
|
|
$
|
2,200.0
|
|
|
|
4.34%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average term of debt:
|
|
|
|
|
6.5 years
|
|
|
|
|
(a) Assuming exercise of one-year extension option.
|
(b) Excludes adjustment for deferred financing costs.
|
|
Interest Summary
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
March 31,
|
|
|
Growth %
|
(dollars in millions)
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
Yr/Yr
|
Interest expense and fees
|
|
|
|
|
$
|
25.2
|
|
|
|
$
|
23.8
|
|
|
|
$
|
16.2
|
|
|
|
56
|
%
|
Amortization of deferred financing costs and bond premium
|
|
|
|
|
0.7
|
|
|
|
0.9
|
|
|
|
1.0
|
|
|
|
(30
|
)%
|
Capitalized interest
|
|
|
|
|
(5.1
|
)
|
|
|
(4.6
|
)
|
|
|
(3.6
|
)
|
|
|
42
|
%
|
Total interest expense
|
|
|
|
|
$
|
20.8
|
|
|
|
$
|
20.1
|
|
|
|
$
|
13.6
|
|
|
|
53
|
%
|
|
|
CyrusOne Inc.
Colocation Square Footage (CSF) and CSF Leased
(Unaudited)
|
|
|
|
|
|
|
As of March 31, 2018
|
|
|
As of December 31, 2017
|
|
|
As of March 31, 2017
|
Market
|
|
|
|
|
Colocation
Space (CSF)(a) (000)
|
|
|
CSF
Leased(b)
|
|
|
Colocation
Space (CSF)(a) (000)
|
|
|
CSF
Leased(b)
|
|
|
Colocation
Space (CSF)(a) (000)
|
|
|
CSF
Leased(b)
|
Northern Virginia
|
|
|
|
|
673
|
|
|
|
94
|
%
|
|
|
640
|
|
|
|
79
|
%
|
|
|
357
|
|
|
|
100
|
%
|
Dallas
|
|
|
|
|
555
|
|
|
|
81
|
%
|
|
|
506
|
|
|
|
85
|
%
|
|
|
431
|
|
|
|
87
|
%
|
Phoenix
|
|
|
|
|
509
|
|
|
|
91
|
%
|
|
|
509
|
|
|
|
91
|
%
|
|
|
216
|
|
|
|
100
|
%
|
Cincinnati
|
|
|
|
|
404
|
|
|
|
92
|
%
|
|
|
404
|
|
|
|
91
|
%
|
|
|
387
|
|
|
|
91
|
%
|
Houston
|
|
|
|
|
308
|
|
|
|
74
|
%
|
|
|
308
|
|
|
|
74
|
%
|
|
|
308
|
|
|
|
74
|
%
|
San Antonio
|
|
|
|
|
273
|
|
|
|
100
|
%
|
|
|
273
|
|
|
|
88
|
%
|
|
|
240
|
|
|
|
100
|
%
|
New York Metro
|
|
|
|
|
218
|
|
|
|
83
|
%
|
|
|
218
|
|
|
|
82
|
%
|
|
|
218
|
|
|
|
83
|
%
|
Chicago
|
|
|
|
|
213
|
|
|
|
67
|
%
|
|
|
213
|
|
|
|
64
|
%
|
|
|
136
|
|
|
|
86
|
%
|
Austin
|
|
|
|
|
106
|
|
|
|
73
|
%
|
|
|
106
|
|
|
|
67
|
%
|
|
|
106
|
|
|
|
59
|
%
|
Raleigh-Durham
|
|
|
|
|
76
|
|
|
|
88
|
%
|
|
|
76
|
|
|
|
88
|
%
|
|
|
65
|
|
|
|
80
|
%
|
International
|
|
|
|
|
13
|
|
|
|
76
|
%
|
|
|
13
|
|
|
|
76
|
%
|
|
|
13
|
|
|
|
74
|
%
|
Total
|
|
|
|
|
3,348
|
|
|
|
86
|
%
|
|
|
3,267
|
|
|
|
83
|
%
|
|
|
2,477
|
|
|
|
88
|
%
|
Stabilized Properties(c)
|
|
|
|
|
3,024
|
|
|
|
92
|
%
|
|
|
2,653
|
|
|
|
93
|
%
|
|
|
2,293
|
|
|
|
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)
|
|
CSF Leased 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% leased.
|
|
|
CyrusOne Inc.
2018 Guidance
|
|
|
|
|
|
Category
|
|
|
|
2018 Guidance(1)
|
Total Revenue
|
|
|
|
$810 - 825 million
|
Lease and Other Revenues from Customers
|
|
|
|
$735 - 745 million
|
Metered Power Reimbursements
|
|
|
|
$75 - 80 million
|
Adjusted EBITDA
|
|
|
|
$460 - 470 million
|
Normalized FFO per diluted common share
|
|
|
|
$3.18 - 3.28
|
Capital Expenditures
|
|
|
|
$850 - 900 million
|
Development
|
|
|
|
$845 - 890 million
|
Recurring
|
|
|
|
$5 - 10 million
|
|
|
|
(1)
|
|
Full year 2018 guidance includes the impact of the Zenium
acquisition, which is expected to close in May 2018. Development
capital expenditures include the acquisition of land for future
development.
|
The annual guidance provided above represents forward-looking
statements, which are based on current economic conditions, internal
assumptions about the Company's existing customer base and the supply
and demand dynamics of the markets in which CyrusOne operates.
CyrusOne 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 March 31, 2018
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Net Rentable Square Feet (NRSF)(a)
|
|
|
Powered Shell Available for
Future Development (NRSF)(k)
(000)
|
|
|
Available Critical Load
Capacity (MW)(l)
|
Stabilized Properties(b)
|
|
|
Metro Area
|
|
|
Annualized Rent(c)
($000)
|
|
|
Colocation Space (CSF)(d)
(000)
|
|
|
CSF Occupied(e)
|
|
|
CSF Leased(f)
|
|
|
Office & Other(g)
(000)
|
|
|
Office & Other Occupied(h)
|
|
|
Supporting Infrastructure(i) (000)
|
|
|
Total(j) (000)
|
|
|
|
|
Dallas - Carrollton
|
|
|
Dallas
|
|
|
$
|
70,766
|
|
|
305
|
|
|
89
|
%
|
|
|
90
|
%
|
|
|
66
|
|
|
63
|
%
|
|
|
111
|
|
|
482
|
|
|
16
|
|
|
|
38
|
Houston - Houston West I
|
|
|
Houston
|
|
|
|
43,053
|
|
|
112
|
|
|
96
|
%
|
|
|
96
|
%
|
|
|
11
|
|
|
99
|
%
|
|
|
37
|
|
|
161
|
|
|
3
|
|
|
|
28
|
Dallas - Lewisville*
|
|
|
Dallas
|
|
|
|
34,705
|
|
|
114
|
|
|
93
|
%
|
|
|
93
|
%
|
|
|
11
|
|
|
95
|
%
|
|
|
54
|
|
|
180
|
|
|
-
|
|
|
|
21
|
Cincinnati - 7th Street***
|
|
|
Cincinnati
|
|
|
|
34,475
|
|
|
197
|
|
|
93
|
%
|
|
|
94
|
%
|
|
|
6
|
|
|
100
|
%
|
|
|
175
|
|
|
378
|
|
|
46
|
|
|
|
16
|
Northern Virginia - Sterling II
|
|
|
Northern Virginia
|
|
|
|
33,337
|
|
|
159
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
9
|
|
|
100
|
%
|
|
|
55
|
|
|
223
|
|
|
-
|
|
|
|
30
|
Somerset I
|
|
|
New York Metro
|
|
|
|
29,300
|
|
|
97
|
|
|
88
|
%
|
|
|
88
|
%
|
|
|
27
|
|
|
85
|
%
|
|
|
89
|
|
|
213
|
|
|
2
|
|
|
|
11
|
Chicago - Aurora I
|
|
|
Chicago
|
|
|
|
28,034
|
|
|
113
|
|
|
96
|
%
|
|
|
96
|
%
|
|
|
34
|
|
|
100
|
%
|
|
|
223
|
|
|
371
|
|
|
27
|
|
|
|
71
|
San Antonio III
|
|
|
San Antonio
|
|
|
|
27,148
|
|
|
132
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
9
|
|
|
100
|
%
|
|
|
43
|
|
|
184
|
|
|
-
|
|
|
|
24
|
Totowa - Madison**
|
|
|
New York Metro
|
|
|
|
25,798
|
|
|
51
|
|
|
89
|
%
|
|
|
89
|
%
|
|
|
22
|
|
|
100
|
%
|
|
|
59
|
|
|
133
|
|
|
-
|
|
|
|
6
|
Cincinnati - North Cincinnati
|
|
|
Cincinnati
|
|
|
|
24,319
|
|
|
65
|
|
|
98
|
%
|
|
|
98
|
%
|
|
|
45
|
|
|
75
|
%
|
|
|
53
|
|
|
163
|
|
|
65
|
|
|
|
14
|
Houston - Houston West II
|
|
|
Houston
|
|
|
|
22,874
|
|
|
80
|
|
|
87
|
%
|
|
|
87
|
%
|
|
|
4
|
|
|
88
|
%
|
|
|
55
|
|
|
139
|
|
|
11
|
|
|
|
12
|
San Antonio I
|
|
|
San Antonio
|
|
|
|
22,684
|
|
|
44
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
6
|
|
|
83
|
%
|
|
|
46
|
|
|
96
|
|
|
11
|
|
|
|
12
|
Wappingers Falls I**
|
|
|
New York Metro
|
|
|
|
22,448
|
|
|
37
|
|
|
86
|
%
|
|
|
91
|
%
|
|
|
20
|
|
|
99
|
%
|
|
|
15
|
|
|
72
|
|
|
-
|
|
|
|
3
|
Phoenix - Chandler II
|
|
|
Phoenix
|
|
|
|
19,956
|
|
|
74
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
6
|
|
|
38
|
%
|
|
|
26
|
|
|
105
|
|
|
-
|
|
|
|
12
|
Phoenix - Chandler I
|
|
|
Phoenix
|
|
|
|
18,331
|
|
|
74
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
35
|
|
|
12
|
%
|
|
|
39
|
|
|
147
|
|
|
31
|
|
|
|
16
|
Northern Virginia - Sterling I
|
|
|
Northern Virginia
|
|
|
|
18,311
|
|
|
78
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
6
|
|
|
77
|
%
|
|
|
49
|
|
|
132
|
|
|
-
|
|
|
|
12
|
Raleigh-Durham I
|
|
|
Raleigh-Durham
|
|
|
|
17,877
|
|
|
76
|
|
|
88
|
%
|
|
|
88
|
%
|
|
|
13
|
|
|
100
|
%
|
|
|
82
|
|
|
171
|
|
|
246
|
|
|
|
12
|
Phoenix - Chandler III
|
|
|
Phoenix
|
|
|
|
17,344
|
|
|
68
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
2
|
|
|
-
|
%
|
|
|
30
|
|
|
101
|
|
|
-
|
|
|
|
14
|
Houston - Galleria
|
|
|
Houston
|
|
|
|
16,696
|
|
|
63
|
|
|
61
|
%
|
|
|
61
|
%
|
|
|
23
|
|
|
51
|
%
|
|
|
25
|
|
|
112
|
|
|
-
|
|
|
|
14
|
Austin II
|
|
|
Austin
|
|
|
|
15,234
|
|
|
44
|
|
|
95
|
%
|
|
|
95
|
%
|
|
|
2
|
|
|
100
|
%
|
|
|
22
|
|
|
68
|
|
|
-
|
|
|
|
5
|
Northern Virginia - Sterling III
|
|
|
Northern Virginia
|
|
|
|
15,184
|
|
|
79
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
7
|
|
|
100
|
%
|
|
|
34
|
|
|
120
|
|
|
-
|
|
|
|
15
|
San Antonio II
|
|
|
San Antonio
|
|
|
|
14,310
|
|
|
64
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
11
|
|
|
100
|
%
|
|
|
41
|
|
|
117
|
|
|
-
|
|
|
|
12
|
Northern Virginia - Sterling V
|
|
|
Northern Virginia
|
|
|
|
13,394
|
|
|
276
|
|
|
59
|
%
|
|
|
85
|
%
|
|
|
9
|
|
|
100
|
%
|
|
|
121
|
|
|
405
|
|
|
244
|
|
|
|
33
|
Florence
|
|
|
Cincinnati
|
|
|
|
13,276
|
|
|
53
|
|
|
99
|
%
|
|
|
99
|
%
|
|
|
47
|
|
|
87
|
%
|
|
|
40
|
|
|
140
|
|
|
-
|
|
|
|
9
|
Phoenix - Chandler VI
|
|
|
Phoenix
|
|
|
|
12,277
|
|
|
148
|
|
|
94
|
%
|
|
|
94
|
%
|
|
|
5
|
|
|
100
|
%
|
|
|
32
|
|
|
185
|
|
|
10
|
|
|
|
24
|
Phoenix - Chandler IV
|
|
|
Phoenix
|
|
|
|
11,222
|
|
|
73
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
3
|
|
|
100
|
%
|
|
|
27
|
|
|
103
|
|
|
-
|
|
|
|
12
|
Cincinnati - Hamilton*
|
|
|
Cincinnati
|
|
|
|
11,176
|
|
|
47
|
|
|
76
|
%
|
|
|
76
|
%
|
|
|
1
|
|
|
100
|
%
|
|
|
35
|
|
|
83
|
|
|
-
|
|
|
|
10
|
Austin III
|
|
|
Austin
|
|
|
|
10,769
|
|
|
62
|
|
|
52
|
%
|
|
|
58
|
%
|
|
|
15
|
|
|
83
|
%
|
|
|
21
|
|
|
98
|
|
|
67
|
|
|
|
6
|
London - Great Bridgewater**
|
|
|
International
|
|
|
|
6,015
|
|
|
10
|
|
|
94
|
%
|
|
|
94
|
%
|
|
|
-
|
|
|
-
|
%
|
|
|
1
|
|
|
11
|
|
|
-
|
|
|
|
1
|
Northern Virginia - Sterling IV
|
|
|
Northern Virginia
|
|
|
|
5,774
|
|
|
81
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
7
|
|
|
100
|
%
|
|
|
34
|
|
|
122
|
|
|
-
|
|
|
|
15
|
Dallas - Midway**
|
|
|
Dallas
|
|
|
|
5,357
|
|
|
8
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
-
|
|
|
-
|
%
|
|
|
-
|
|
|
8
|
|
|
-
|
|
|
|
1
|
Stamford - Riverbend**
|
|
|
New York Metro
|
|
|
|
5,149
|
|
|
20
|
|
|
23
|
%
|
|
|
23
|
%
|
|
|
-
|
|
|
-
|
%
|
|
|
8
|
|
|
28
|
|
|
-
|
|
|
|
2
|
Cincinnati - Mason
|
|
|
Cincinnati
|
|
|
|
5,087
|
|
|
34
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
26
|
|
|
98
|
%
|
|
|
17
|
|
|
78
|
|
|
-
|
|
|
|
4
|
Norwalk I**
|
|
|
New York Metro
|
|
|
|
3,797
|
|
|
13
|
|
|
93
|
%
|
|
|
100
|
%
|
|
|
4
|
|
|
72
|
%
|
|
|
41
|
|
|
58
|
|
|
87
|
|
|
|
2
|
Dallas - Marsh**
|
|
|
Dallas
|
|
|
|
2,570
|
|
|
4
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
-
|
|
|
-
|
%
|
|
|
-
|
|
|
4
|
|
|
-
|
|
|
|
1
|
Chicago - Lombard
|
|
|
Chicago
|
|
|
|
2,325
|
|
|
14
|
|
|
73
|
%
|
|
|
73
|
%
|
|
|
4
|
|
|
100
|
%
|
|
|
12
|
|
|
30
|
|
|
29
|
|
|
|
3
|
Stamford - Omega**
|
|
|
New York Metro
|
|
|
|
1,238
|
|
|
-
|
|
|
-
|
%
|
|
|
-
|
%
|
|
|
19
|
|
|
84
|
%
|
|
|
4
|
|
|
22
|
|
|
-
|
|
|
|
-
|
Cincinnati - Blue Ash*
|
|
|
Cincinnati
|
|
|
|
630
|
|
|
6
|
|
|
36
|
%
|
|
|
36
|
%
|
|
|
7
|
|
|
100
|
%
|
|
|
2
|
|
|
15
|
|
|
-
|
|
|
|
1
|
Totowa - Commerce**
|
|
|
New York Metro
|
|
|
|
569
|
|
|
-
|
|
|
-
|
%
|
|
|
-
|
%
|
|
|
20
|
|
|
38
|
%
|
|
|
6
|
|
|
26
|
|
|
-
|
|
|
|
-
|
South Bend - Crescent*
|
|
|
Chicago
|
|
|
|
541
|
|
|
3
|
|
|
40
|
%
|
|
|
40
|
%
|
|
|
-
|
|
|
-
|
%
|
|
|
5
|
|
|
9
|
|
|
11
|
|
|
|
1
|
Houston - Houston West III
|
|
|
Houston
|
|
|
|
507
|
|
|
-
|
|
|
-
|
%
|
|
|
-
|
%
|
|
|
10
|
|
|
100
|
%
|
|
|
11
|
|
|
21
|
|
|
209
|
|
|
|
-
|
Singapore - Inter Business Park**
|
|
|
International
|
|
|
|
376
|
|
|
3
|
|
|
22
|
%
|
|
|
22
|
%
|
|
|
-
|
|
|
-
|
%
|
|
|
-
|
|
|
3
|
|
|
-
|
|
|
|
1
|
South Bend - Monroe
|
|
|
Chicago
|
|
|
|
142
|
|
|
6
|
|
|
23
|
%
|
|
|
23
|
%
|
|
|
-
|
|
|
-
|
%
|
|
|
6
|
|
|
13
|
|
|
4
|
|
|
|
1
|
Cincinnati - Goldcoast
|
|
|
Cincinnati
|
|
|
|
13
|
|
|
3
|
|
|
-
|
%
|
|
|
-
|
%
|
|
|
5
|
|
|
-
|
%
|
|
|
16
|
|
|
24
|
|
|
14
|
|
|
|
1
|
San Antonio IV
|
|
|
San Antonio
|
|
|
|
-
|
|
|
33
|
|
|
-
|
%
|
|
|
100
|
%
|
|
|
4
|
|
|
-
|
%
|
|
|
27
|
|
|
64
|
|
|
-
|
|
|
|
6
|
Stabilized Properties - Total
|
|
|
|
|
|
$
|
684,384
|
|
|
3,024
|
|
|
88
|
%
|
|
|
92
|
%
|
|
|
562
|
|
|
78
|
%
|
|
|
1,830
|
|
|
5,416
|
|
|
1,133
|
|
|
|
518
|
|
CyrusOne Inc. Data Center Portfolio As of
March 31, 2018 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Net Rentable Square Feet (NRSF)(a)
|
|
|
Powered Shell Available for
Future Development (NRSF)(k)
(000)
|
|
|
Available Critical Load
Capacity (MW)(l)
|
|
|
|
Metro Area
|
|
|
Annualized Rent(c)
($000)
|
|
|
Colocation Space (CSF)(d)
(000)
|
|
|
CSF Occupied(e)
|
|
|
CSF Leased(f)
|
|
|
Office & Other(g)
(000)
|
|
|
Office & Other Occupied(h)
|
|
|
Supporting Infrastructure(i)
(000)
|
|
|
Total(j) (000)
|
|
|
|
|
Stabilized Properties - Total
|
|
|
|
|
|
$
|
684,384
|
|
|
3,024
|
|
|
88
|
%
|
|
|
92
|
%
|
|
|
562
|
|
|
78
|
%
|
|
|
1,830
|
|
|
5,416
|
|
|
1,133
|
|
|
518
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-Stabilized Properties(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dallas - Carrollton (DH #6)
|
|
|
Dallas
|
|
|
|
4,442
|
|
|
75
|
|
|
62
|
%
|
|
|
62
|
%
|
|
|
-
|
|
|
-
|
%
|
|
|
21
|
|
|
96
|
|
|
-
|
|
|
6
|
Houston - Houston West III (DH #1)
|
|
|
Houston
|
|
|
|
3,633
|
|
|
53
|
|
|
22
|
%
|
|
|
23
|
%
|
|
|
-
|
|
|
-
|
%
|
|
|
21
|
|
|
74
|
|
|
-
|
|
|
6
|
Phoenix - Chandler V
|
|
|
Phoenix
|
|
|
|
3,116
|
|
|
72
|
|
|
50
|
%
|
|
|
50
|
%
|
|
|
1
|
|
|
50
|
%
|
|
|
16
|
|
|
89
|
|
|
94
|
|
|
6
|
Chicago - Aurora II (DH #1)
|
|
|
Chicago
|
|
|
|
311
|
|
|
77
|
|
|
23
|
%
|
|
|
26
|
%
|
|
|
10
|
|
|
-
|
%
|
|
|
14
|
|
|
101
|
|
|
272
|
|
|
16
|
Dallas - Carrollton (DH #7)
|
|
|
Dallas
|
|
|
|
-
|
|
|
48
|
|
|
-
|
%
|
|
|
21
|
%
|
|
|
-
|
|
|
-
|
%
|
|
|
-
|
|
|
48
|
|
|
-
|
|
|
6
|
All Properties - Total
|
|
|
|
|
|
$
|
695,885
|
|
|
3,348
|
|
|
83
|
%
|
|
|
86
|
%
|
|
|
573
|
|
|
78
|
%
|
|
|
1,903
|
|
|
5,824
|
|
|
1,499
|
|
|
567
|
|
|
|
*
|
|
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 is 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 Cincinnati - 7th Street 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% leased. Pre-stabilized
properties include data halls that have been in service for less
than 24 months and are less than 85% leased.
|
(c)
|
|
Represents monthly contractual rent (defined as cash rent including
customer reimbursements for metered power) under existing customer
leases as of March 31, 2018, multiplied by 12. For the month of
March 2018, customer reimbursements were $80.6 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, 2016 through March 31,
2018, customer reimbursements under leases with separately metered
power constituted between 10.2% and 12.6% of annualized rent. After
giving effect to abatements, free rent and other straight-line
adjustments, our annualized effective rent as of March 31, 2018 was
$707.7 million. Our annualized effective rent was greater than our
annualized rent as of March 31, 2018 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 occupied is determined based on CSF billed to customers
under signed leases as of March 31, 2018 divided by total CSF.
Leases signed but that have not commenced billing as of March 31,
2018 are not included.
|
(f)
|
|
Percent leased 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 occupied is determined based on Office & Other space being
billed to customers under signed leases as of March 31, 2018 divided
by total Office & Other space. Leases signed but not commenced as of
March 31, 2018 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 March 31, 2018
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NRSF Under Development(a)
|
|
|
|
|
|
Under Development Costs
|
Facilities
|
|
|
Metropolitan
Area
|
|
|
Estimated Completion Date
|
|
|
Colocation Space (CSF)
(000)
|
|
|
Office & Other (000)
|
|
|
Supporting Infrastructure (000)
|
|
|
Powered Shell(b)
(000)
|
|
|
Total (000)
|
|
|
Critical Load MW Capacity(c)
|
|
|
Actual to Date(d)
|
|
|
Estimated
Costs to
Completion(e)
|
|
|
Total
|
Somerset II
|
|
|
New York Metro
|
|
|
2Q'18
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
210
|
|
|
210
|
|
|
-
|
|
|
$
|
23
|
|
|
$
|
1-2
|
|
|
$
|
24-25
|
Northern Virginia - Sterling V
|
|
|
Northern Virginia
|
|
|
2Q'18
|
|
|
26
|
|
|
|
-
|
|
|
17
|
|
|
-
|
|
|
43
|
|
|
12.0
|
|
|
|
-
|
|
|
|
47-52
|
|
|
|
47-52
|
Dallas - Allen
|
|
|
Dallas
|
|
|
2Q'18
|
|
|
79
|
|
|
|
27
|
|
|
60
|
|
|
175
|
|
|
341
|
|
|
6.0
|
|
|
|
27
|
|
|
|
31-37
|
|
|
|
58-64
|
Phoenix - Chandler V
|
|
|
Phoenix
|
|
|
2Q'18
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
6.0
|
|
|
|
-
|
|
|
|
18-20
|
|
|
|
18-20
|
Dallas - Carrollton
|
|
|
Dallas
|
|
|
3Q'18
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
6.0
|
|
|
|
-
|
|
|
|
17-19
|
|
|
|
17-19
|
San Antonio IV
|
|
|
San Antonio
|
|
|
3Q'18
|
|
|
27
|
|
|
|
8
|
|
|
-
|
|
|
-
|
|
|
35
|
|
|
6.0
|
|
|
|
-
|
|
|
|
15-17
|
|
|
|
15-17
|
Northern Virginia - Sterling VI
|
|
|
Northern Virginia
|
|
|
3Q'18
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
359
|
|
|
359
|
|
|
-
|
|
|
|
-
|
|
|
|
73-77
|
|
|
|
73-77
|
Aurora II
|
|
|
Chicago
|
|
|
3Q'18
|
|
|
-
|
|
|
|
35
|
|
|
-
|
|
|
-
|
|
|
35
|
|
|
-
|
|
|
|
-
|
|
|
|
8-9
|
|
|
|
8-9
|
Total
|
|
|
|
|
|
|
|
|
132
|
|
|
|
70
|
|
|
77
|
|
|
744
|
|
|
1,023
|
|
|
36.0
|
|
|
$
|
50
|
|
|
$
|
210-233
|
|
|
$
|
260-283
|
|
|
|
(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.
|
(d)
|
|
Actual to date is the cash investment as of March 31, 2018. 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 March 31, 2018
(Unaudited)
|
|
|
|
|
|
|
|
|
|
As of
|
Market
|
|
|
|
March 31, 2018
|
Atlanta
|
|
|
|
44
|
Austin
|
|
|
|
22
|
Chicago
|
|
|
|
23
|
Cincinnati
|
|
|
|
98
|
Dallas
|
|
|
|
33
|
Houston
|
|
|
|
20
|
International
|
|
|
|
-
|
New York Metro
|
|
|
|
-
|
Northern Virginia
|
|
|
|
-
|
Phoenix
|
|
|
|
39
|
Quincy, Washington
|
|
|
|
48
|
Raleigh-Durham
|
|
|
|
-
|
San Antonio
|
|
|
|
-
|
Total Available
|
|
|
|
327
|
Book Value of Total Available
|
|
|
|
$54 million
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Leasing Statistics - Lease Signings
As of March 31, 2018
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period
|
|
|
|
Number of Leases(a)
|
|
|
|
Total CSF Signed(b)
|
|
|
|
Total kW Signed(c)
|
|
|
|
Total MRR Signed (000)(d)
|
|
|
|
Weighted Average Lease Term(e)
|
1Q'18(f)
|
|
|
|
439
|
|
|
|
226,000
|
|
|
|
29,364
|
|
|
|
$3,370
|
|
|
|
77
|
Prior 4Q Avg.
|
|
|
|
434
|
|
|
|
130,250
|
|
|
|
14,591
|
|
|
|
$2,198
|
|
|
|
80
|
4Q'17
|
|
|
|
395
|
|
|
|
86,000
|
|
|
|
8,600
|
|
|
|
$1,463
|
|
|
|
61
|
3Q'17
|
|
|
|
411
|
|
|
|
151,000
|
|
|
|
14,830
|
|
|
|
$2,228
|
|
|
|
68
|
2Q'17
|
|
|
|
451
|
|
|
|
136,000
|
|
|
|
16,673
|
|
|
|
$2,467
|
|
|
|
86
|
1Q'17
|
|
|
|
480
|
|
|
|
148,000
|
|
|
|
18,259
|
|
|
|
$2,632
|
|
|
|
103
|
|
|
|
|
(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 $0.2 million in 2Q'17-1Q'18
and $0.1 million in each of the other quarters.
|
(e)
|
|
|
Calculated on a CSF-weighted basis.
|
(f)
|
|
|
Excludes leasing from Zenium.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
New MRR Signed - Existing vs. New Customers
As of March 31, 2018
(Dollars in thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New MRR(a) Signed ($000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q'16
|
|
|
3Q'16
|
|
|
4Q'16
|
|
|
1Q'17
|
|
|
2Q'17
|
|
|
3Q'17
|
|
|
4Q'17
|
|
|
1Q'18(b)
|
Existing Customers
|
|
|
$
|
4,406
|
|
|
|
$
|
1,796
|
|
|
|
$
|
1,332
|
|
|
|
$
|
2,247
|
|
|
|
$
|
2,322
|
|
|
|
$
|
1,418
|
|
|
|
$
|
1,063
|
|
|
|
$
|
3,149
|
|
New Customers
|
|
|
$
|
460
|
|
|
|
$
|
454
|
|
|
|
$
|
258
|
|
|
|
$
|
385
|
|
|
|
$
|
145
|
|
|
|
$
|
810
|
|
|
|
$
|
400
|
|
|
|
$
|
221
|
|
Total
|
|
|
$
|
4,866
|
|
|
|
$
|
2,250
|
|
|
|
$
|
1,590
|
|
|
|
$
|
2,632
|
|
|
|
$
|
2,467
|
|
|
|
$
|
2,228
|
|
|
|
$
|
1,463
|
|
|
|
$
|
3,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% from Existing Customers
|
|
|
|
91
|
%
|
|
|
|
80
|
%
|
|
|
|
84
|
%
|
|
|
|
85
|
%
|
|
|
|
94
|
%
|
|
|
|
64
|
%
|
|
|
|
73
|
%
|
|
|
|
93
|
%
|
|
|
|
(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 $0.2 million in 2Q'17-1Q'18
and $0.1 million in each of the other quarters.
|
(b)
|
|
Excludes leasing from Zenium.
|
|
CyrusOne Inc.
Customer Sector Diversification(a)
As of March 31, 2018
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal Customer Industry
|
|
|
Number of Locations
|
|
|
Annualized Rent(b) (000)
|
|
|
Percentage of Portfolio Annualized Rent(c)
|
|
|
Weighted Average Remaining Lease
Term in Months(d)
|
1
|
|
Information Technology
|
|
|
9
|
|
|
$
|
125,202
|
|
|
|
18.0
|
%
|
|
|
90.4
|
2
|
|
Information Technology
|
|
|
4
|
|
|
32,858
|
|
|
|
4.7
|
%
|
|
|
82.7
|
3
|
|
Information Technology
|
|
|
10
|
|
|
31,078
|
|
|
|
4.5
|
%
|
|
|
45.9
|
4
|
|
Financial Services
|
|
|
1
|
|
|
19,794
|
|
|
|
2.8
|
%
|
|
|
156.0
|
5
|
|
Telecommunication Services
|
|
|
2
|
|
|
15,875
|
|
|
|
2.3
|
%
|
|
|
6.5
|
6
|
|
Research and Consulting Services
|
|
|
3
|
|
|
15,783
|
|
|
|
2.3
|
%
|
|
|
33.1
|
7
|
|
Healthcare
|
|
|
2
|
|
|
14,832
|
|
|
|
2.1
|
%
|
|
|
117.0
|
8
|
|
Energy
|
|
|
5
|
|
|
13,592
|
|
|
|
2.0
|
%
|
|
|
5.3
|
9
|
|
Energy
|
|
|
1
|
|
|
12,772
|
|
|
|
1.8
|
%
|
|
|
25.0
|
10
|
|
Industrials
|
|
|
4
|
|
|
11,203
|
|
|
|
1.6
|
%
|
|
|
17.5
|
11
|
|
Telecommunication Services
|
|
|
7
|
|
|
9,683
|
|
|
|
1.4
|
%
|
|
|
29.9
|
12
|
|
Financial Services
|
|
|
2
|
|
|
9,039
|
|
|
|
1.3
|
%
|
|
|
65.5
|
13
|
|
Information Technology
|
|
|
4
|
|
|
8,982
|
|
|
|
1.3
|
%
|
|
|
52.3
|
14
|
|
Consumer Staples
|
|
|
4
|
|
|
8,396
|
|
|
|
1.2
|
%
|
|
|
34.4
|
15
|
|
Information Technology
|
|
|
2
|
|
|
7,579
|
|
|
|
1.1
|
%
|
|
|
72.1
|
16
|
|
Information Technology
|
|
|
3
|
|
|
6,955
|
|
|
|
1.0
|
%
|
|
|
118.0
|
17
|
|
Financial Services
|
|
|
1
|
|
|
6,600
|
|
|
|
1.0
|
%
|
|
|
26.0
|
18
|
|
Energy
|
|
|
2
|
|
|
6,300
|
|
|
|
0.9
|
%
|
|
|
22.5
|
19
|
|
Telecommunication Services
|
|
|
5
|
|
|
5,861
|
|
|
|
0.8
|
%
|
|
|
13.2
|
20
|
|
Consumer Staples
|
|
|
2
|
|
|
5,214
|
|
|
|
0.7
|
%
|
|
|
48.7
|
|
|
|
|
|
|
|
|
$
|
367,597
|
|
|
|
52.8
|
%
|
|
|
68.4
|
|
(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 March 31, 2018, multiplied by 12. For the month of
March 2018, customer reimbursements were $80.6 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, 2016 through March 31,
2018, customer reimbursements under leases with separately metered
power constituted between 10.2% and 12.6% of annualized rent. After
giving effect to abatements, free rent and other straight-line
adjustments, our annualized effective rent as of March 31, 2018 was
$707.7 million. Our annualized effective rent was greater than our
annualized rent as of March 31, 2018 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 March 31, 2018, which was
approximately $695.9 million.
|
(d)
|
|
Weighted average based on customer's percentage of total annualized
rent expiring and is as of March 31, 2018, 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 March 31, 2018
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NRSF Under Lease(a)
|
|
|
Number of
Customers(b)
|
|
|
Percentage of
All Customers
|
|
|
Total
Leased
NRSF(c) (000)
|
|
|
Percentage of
Portfolio
Leased NRSF
|
|
|
Annualized
Rent(d) (000)
|
|
|
Percentage of
Annualized Rent
|
0-999
|
|
|
679
|
|
|
69
|
%
|
|
|
144
|
|
|
3
|
%
|
|
|
$
|
67,998
|
|
|
10
|
%
|
1,000-2,499
|
|
|
120
|
|
|
12
|
%
|
|
|
190
|
|
|
4
|
%
|
|
|
41,654
|
|
|
6
|
%
|
2,500-4,999
|
|
|
69
|
|
|
7
|
%
|
|
|
245
|
|
|
5
|
%
|
|
|
44,681
|
|
|
6
|
%
|
5,000-9,999
|
|
|
45
|
|
|
4
|
%
|
|
|
316
|
|
|
7
|
%
|
|
|
62,071
|
|
|
9
|
%
|
10,000+
|
|
|
76
|
|
|
8
|
%
|
|
|
3,915
|
|
|
81
|
%
|
|
|
479,482
|
|
|
69
|
%
|
Total
|
|
|
989
|
|
|
100
|
%
|
|
|
4,809
|
|
|
100
|
%
|
|
|
$
|
695,885
|
|
|
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 March 31, 2018. 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 March 31, 2018, multiplied by 12. For the month of
March 2018, customer reimbursements were $80.6 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, 2016 through March 31,
2018, customer reimbursements under leases with separately metered
power constituted between 10.2% and 12.6% of annualized rent. After
giving effect to abatements, free rent and other straight-line
adjustments, our annualized effective rent as of March 31, 2018 was
$707.7 million. Our annualized effective rent was greater than our
annualized rent as of March 31, 2018 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 March 31, 2018
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year(a)
|
|
|
Number of Leases Expiring(b)
|
|
|
Total Operating NRSF Expiring (000)
|
|
|
Percentage of Total NRSF
|
|
|
Annualized Rent(c) (000)
|
|
|
Percentage of Annualized Rent
|
|
|
Annualized Rent at Expiration(d) (000)
|
|
|
Percentage of Annualized Rent at
Expiration
|
Available
|
|
|
|
|
|
1,041
|
|
|
18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Month-to-Month
|
|
|
613
|
|
|
57
|
|
|
1
|
%
|
|
|
$
|
17,323
|
|
|
2
|
%
|
|
|
$
|
17,384
|
|
|
2
|
%
|
2018
|
|
|
1,515
|
|
|
401
|
|
|
7
|
%
|
|
|
|
102,917
|
|
|
15
|
%
|
|
|
|
105,649
|
|
|
14
|
%
|
2019
|
|
|
1,681
|
|
|
529
|
|
|
9
|
%
|
|
|
|
96,538
|
|
|
14
|
%
|
|
|
|
98,400
|
|
|
13
|
%
|
2020
|
|
|
1,349
|
|
|
513
|
|
|
9
|
%
|
|
|
|
73,347
|
|
|
10
|
%
|
|
|
|
75,880
|
|
|
10
|
%
|
2021
|
|
|
935
|
|
|
563
|
|
|
10
|
%
|
|
|
|
92,170
|
|
|
13
|
%
|
|
|
|
100,443
|
|
|
13
|
%
|
2022
|
|
|
242
|
|
|
554
|
|
|
9
|
%
|
|
|
|
54,301
|
|
|
8
|
%
|
|
|
|
67,303
|
|
|
9
|
%
|
2023
|
|
|
111
|
|
|
290
|
|
|
5
|
%
|
|
|
|
26,332
|
|
|
4
|
%
|
|
|
|
36,398
|
|
|
5
|
%
|
2024
|
|
|
42
|
|
|
239
|
|
|
4
|
%
|
|
|
|
33,539
|
|
|
5
|
%
|
|
|
|
42,732
|
|
|
5
|
%
|
2025
|
|
|
42
|
|
|
181
|
|
|
3
|
%
|
|
|
|
27,408
|
|
|
4
|
%
|
|
|
|
32,067
|
|
|
4
|
%
|
2026
|
|
|
26
|
|
|
577
|
|
|
10
|
%
|
|
|
|
79,016
|
|
|
11
|
%
|
|
|
|
85,678
|
|
|
11
|
%
|
2027
|
|
|
16
|
|
|
416
|
|
|
7
|
%
|
|
|
|
52,510
|
|
|
8
|
%
|
|
|
|
63,039
|
|
|
8
|
%
|
2028 - Thereafter
|
|
|
16
|
|
|
463
|
|
|
8
|
%
|
|
|
|
40,484
|
|
|
6
|
%
|
|
|
|
49,589
|
|
|
6
|
%
|
Total
|
|
|
6,588
|
|
|
5,824
|
|
|
100
|
%
|
|
|
$
|
695,885
|
|
|
100
|
%
|
|
|
$
|
774,561
|
|
|
100
|
%
|
|
|
|
(a)
|
|
Leases that were auto-renewed prior to March 31, 2018 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 March 31, 2018, multiplied by 12.
For the month of March 2018, customer reimbursements were $80.6
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, 2016 through March 31, 2018, customer reimbursements
under leases with separately metered power constituted between
10.2% and 12.6% of annualized rent. After giving effect to
abatements, free rent and other straight-line adjustments, our
annualized effective rent as of March 31, 2018 was $707.7 million.
Our annualized effective rent was greater than our annualized rent
as of March 31, 2018 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 March 31, 2018, multiplied
by 12.
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180502006710/en/
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