CyrusOne Reports Fourth Quarter and Full Year 2018 Earnings
Business Wire 20-Feb-2019 4:04 PM
4Q'18 Year-over-Year Revenue Growth of 23%
Record Leasing Year with $153 Million in Annualized GAAP Revenue
Signed, up 45% vs. 2017
CyrusOne Inc. (NASDAQ:CONE), a premier global data center REIT, today
announced fourth quarter and full year 2018 earnings.
Highlights
|
Category
|
|
|
4Q'18
|
|
|
% Changevs. 4Q'17
|
|
|
FY'18
|
|
|
% Changevs. FY'17
|
|
Revenue
|
|
|
$221.3 million
|
|
|
23%
|
|
|
$821.4 million
|
|
|
22%
|
|
Net income / (loss)
|
|
|
$(105.8) million
|
|
|
n/m
|
|
|
$1.2 million
|
|
|
n/m
|
|
Adjusted EBITDA
|
|
|
$121.2 million
|
|
|
16%
|
|
|
$452.1 million
|
|
|
22%
|
|
Normalized FFO
|
|
|
$90.9 million
|
|
|
16%
|
|
|
$332.3 million
|
|
|
19%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income / (loss) per diluted share
|
|
|
$(1.00)
|
|
|
n/m
|
|
|
$-
|
|
|
n/m
|
|
Normalized FFO per diluted share
|
|
|
$0.86
|
|
|
2%
|
|
|
$3.31
|
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
|
Leased 7 megawatts ("MW") and 41,000 colocation square feet ("CSF")
in the fourth quarter, totaling $20 million in annualized GAAP
revenue
|
|
|
|
-- For full year 2018, signed more than 1,900 leases totaling 103
MW and 686,000 CSF, representing $153 million in annualized GAAP
revenue, all of which were full year company records
|
|
|
|
|
|
•
|
|
Backlog of $54 million in annualized GAAP revenue as of the end of
the fourth quarter, representing nearly $550 million in total
contract value
|
|
|
|
|
|
•
|
|
Added three Fortune 1000 companies as new customers, increasing the
total number of Fortune 1000 customers to 211 as of the end of the
quarter
|
|
|
|
|
|
•
|
|
Acquired approximately 16 acres of land for development of a campus
at PolanenPark location near the Amsterdam metropolitan area with up
to 72 MW of power capacity
|
|
|
|
-- Subsequent to the end of the quarter, acquired 22 acres of land
in San Antonio with up to 120 MW of power capacity and 8 acres of
land in Santa Clara with up to 48 MW of power capacity to support
growth in those markets
|
|
|
|
|
|
•
|
|
Announced a $12 million investment in exchange for a 10% equity
interest in ODATA Brasil S.A. and ODATA Colombia S.A.S.
(collectively "ODATA"), a leading data center provider in Brazil,
the largest and fastest-growing data center market in Latin America
|
|
|
|
|
|
•
|
|
Completed settlement of forward sale agreement, issuing 2.5
million shares of common stock in exchange for net proceeds of
approximately $148 million"
|
|
|
|
|
"2018 was a tremendous year with continued strong growth, record leasing
that was up nearly 50% over 2017, expansion of our portfolio to the West
Coast and into Europe, and the development of a solution for our
customers in Brazil," said Gary Wojtaszek, president and chief executive
officer of CyrusOne. "We are working hard to position the company to
better serve our customers around the world, capitalizing on the
significant value creation opportunity ahead of us and delivering strong
growth in the coming years in what is still a very early stage for the
industry."
Fourth Quarter 2018 Financial Results
Revenue was $221.3 million for the fourth quarter, compared to $180.5
million for the same period in 2017, an increase of 23%. The increase in
revenue was driven primarily by a 24% increase in occupied CSF from
organic growth and the Zenium acquisition, as well as additional
interconnection services.
Net loss was $(105.8) million for the fourth quarter, compared to net
income of $2.8 million in the same period in 2017. Net loss for the
fourth quarter included a $(96.7) million unrealized loss on the
Company's equity investment in GDS Holdings Limited ("GDS"), a leading
data center provider in China, due to a decrease in GDS's share price
during the quarter. Net loss per diluted common share1 was
$(1.00) in the fourth quarter of 2018, compared to net income of $0.03
per diluted common share in the same period in 2017.
Net operating income (NOI)2 was $143.3 million for the fourth
quarter, compared to $120.3 million in the same period in 2017, an
increase of 19%. Adjusted EBITDA3 was $121.2 million for the
fourth quarter, compared to $104.2 million in the same period in 2017,
an increase of 16%.
Normalized Funds From Operations (Normalized FFO)4 was $90.9
million for the fourth quarter, compared to $78.4 million in the same
period in 2017, an increase of 16%. Normalized FFO per diluted common
share was $0.86 in the fourth quarter of 2018, an increase of 2% over
fourth quarter 2017.
Leasing Activity
CyrusOne leased approximately 7 MW of power and 41,000 CSF in the fourth
quarter, representing $1.7 million in monthly recurring rent, inclusive
of the monthly impact of installation charges, or approximately $20.1
million in annualized GAAP revenue5, excluding estimates for
pass-through power. The weighted average lease term of the new leases,
based on square footage, is 73 months (6.1 years), and the weighted
average remaining lease term of CyrusOne's portfolio is 57 months
(taking into account the impact of the backlog). Recurring rent churn6
for the fourth quarter was 0.8%, compared to 1.1% for the same period in
2017.
Portfolio Development and CSF Leased
In the fourth quarter, the Company completed construction on 144,000 CSF
and 52 MW of power capacity across six projects in Northern Virginia,
Dallas, the New York Metro area, Frankfurt, and London. CSF leased7
as of the end of the fourth quarter was 92% for stabilized properties8
and 88% overall. In addition, the Company has development projects
underway in Northern Virginia, Dallas, the New York Metro area,
Raleigh-Durham, Phoenix, Austin, Frankfurt, London, and Amsterdam that
are expected to add approximately 439,000 CSF and 126 MW of power
capacity.
Balance Sheet and Liquidity
As of December 31, 2018, the Company had gross asset value9
totaling approximately $6.6 billion, an increase of approximately 30%
over gross asset value as of December 31, 2017. CyrusOne had $2.64
billion of long-term debt10, $64.4 million of cash and cash
equivalents, and $1.55 billion available under its unsecured revolving
credit facility as of December 31, 2018. Net debt10 was $2.61
billion as of December 31, 2018, representing approximately 31% of the
Company's total enterprise value as of December 31, 2018 of $8.3
billion, or 5.4x Adjusted EBITDA for the last quarter annualized.
Available liquidity11 was $1.61 billion as of December 31,
2018.
Dividend
On October 30, 2018, the Company announced a dividend of $0.46 per share
of common stock for the fourth quarter of 2018. The dividend was paid on
January 11, 2019, to stockholders of record at the close of business on
January 2, 2019.
Additionally, today the Company is announcing a dividend of $0.46 per
share of common stock for the first quarter of 2019. The dividend will
be paid on April 12, 2019, to stockholders of record at the close of
business on March 29, 2019.
Guidance
CyrusOne is issuing guidance for full year 2019. 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 forward-looking guidance for GAAP financial
measures (other than Revenue and Capital Expenditures) or
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, acquisition, integration and other related
expenses, legal claim 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.
|
|
|
|
|
|
|
|
|
|
|
|
Category
|
|
|
2018 Results
|
|
|
2018 Results Adjustedfor ASC
842(1)
|
|
|
2019 Guidance
|
|
Total Revenue
|
|
|
$821 million
|
|
|
$821 million
|
|
|
$960 - 1,000 million
|
|
Lease and Other Revenues from Customers
|
|
|
$717 million
|
|
|
$717 million
|
|
|
$835 - 865 million
|
|
Metered Power Reimbursements
|
|
|
$104 million
|
|
|
$104 million
|
|
|
$125 - 135 million
|
|
Adjusted EBITDA
|
|
|
$452 million
|
|
|
$435 million
|
|
|
$500 - 525 million
|
|
Normalized FFO per diluted common share
|
|
|
$3.31
|
|
|
$3.22
|
|
|
$3.10 - 3.20
|
|
Capital Expenditures
|
|
|
$866 million
|
|
|
$866 million
|
|
|
$950 - 1,100 million
|
|
Development(2)
|
|
|
$855 million
|
|
|
$855 million
|
|
|
$940 - 1,085 million
|
|
Recurring
|
|
|
$11 million
|
|
|
$11 million
|
|
|
$10 - 15 million
|
|
|
|
|
|
(1)
|
|
ASC 842 refers to Accounting Standards Codification Topic 842 -
Leases, issued by the Financial Accounting Standards Board to
increase transparency and comparability among organizations by
recognizing lease assets and lease liabilities on the balance
sheet and disclosing key information about leasing transactions.
The Company is adopting ASC 842 effective January 1, 2019. The
adjusted 2018 results have not been prepared in accordance with
GAAP and represent the Company's estimates as if the standard had
been adopted as of January 1, 2018. Adjusted EBITDA for 2018
decreased by $17 million due to higher operating lease expense.
Normalized FFO per diluted common share decreased by $0.09 due to
higher operating lease expense, partially offset by lower interest
expense. The adjusted 2018 results are being shown solely for
comparative and investor usefulness purposes with respect to the
Company's 2019 guidance.
|
|
(2)
|
|
Development capital expenditures include the acquisition of land for
future development.
|
|
|
|
|
Upcoming Conferences and Events
-
Morgan Stanley Technology, Media & Telecom Conference on February
25-28 in San Francisco, CA
-
Raymond James Institutional Investors Conference on March 4-6 in
Orlando, FL
-
Deutsche Bank Media, Internet and Telecom Conference on March 11-13 in
Palm Beach, FL
Conference Call Details
CyrusOne will host a conference call on February 21, 2019, at 11:00 AM
Eastern Time (10:00 AM Central Time) to discuss its results for the
fourth quarter of 2018. A live webcast of the conference call and the
presentation to be made during the call will be available in the
"Investors / Events & 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 February
21, 2019, through March 7, 2019. 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 10127497.
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 other than as required by law.
Adoption of New Accounting Standard and Use of Non-GAAP Financial
Measures and Other Metrics
On January 1, 2018, we adopted the new accounting standard with respect
to revenue recognition. See "Note 2. Summary of Significant Accounting
Policies" and "Note 3, Revenue Recognition" in our financial statements
included in our Form 10-Q for the quarter ended March 31, 2018 and in
our subsequent filings for additional information. We have adopted the
new standard using the modified retrospective 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, 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, and 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, and Adjusted
EBITDA should be considered only as supplements to net income as
measures of our performance. FFO, Normalized FFO, 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. The Company believes that Net Debt provides a useful measure of
liquidity and financial health.
1Net income / (loss) per diluted common share is defined as
net income / (loss) divided by the weighted average diluted common
shares outstanding for the period, which were 105.5 million for the
fourth quarter of 2018.
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 expenses. 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 and/or net income (loss), which is presented in the
accompanying consolidated statements of operations, adjusted for sales
and marketing expenses, general and administrative expenses,
depreciation and amortization expenses, transaction, acquisition,
integration and other related expenses, impairment losses, interest
expense, unrealized (gain) loss on marketable equity securities, loss on
early extinguishment of debt, income tax expense and other special items
as appropriate. Amortization of deferred leasing costs is presented in
depreciation and amortization expenses, which is excluded from NOI.
Sales and marketing expenses are not property-specific, rather these
expenses support our entire portfolio. As a result, we have excluded
these sales and marketing expenses from our NOI calculation, consistent
with the treatment of general and administrative expenses, which also
support our entire portfolio. Because the calculation of NOI excludes
various expenses, 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, which is a non-GAAP financial measure, is
defined as net income (loss) as defined by GAAP adjusted for interest
expense, income tax expense, depreciation and amortization, impairment
losses and loss on disposals, transaction, acquisition, integration and
other related expenses, legal claim costs, stock-based compensation
expense, severance and management transition costs, loss on early
extinguishment of debt, new accounting standards and regulatory
compliance and the related system implementation costs, unrealized
(gain) loss on marketable equity investment and other special items as
appropriate. 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 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 loss on early extinguishment of
debt; unrealized (gain) loss on marketable equity investment; new
accounting standards and regulatory compliance and the related system
implementation costs; amortization of trade names, transaction,
acquisition and other integration expenses; severance and management
transition costs; legal claim costs and other special items as
appropriate. The Company believes its Normalized FFO calculation
provides a comparable measure between different periods. 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 colocation 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, which is a
non-GAAP financial measure, 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.
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 211 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 48 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 211 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 48 data
centers worldwide.
-
Best-in-Class Sales Force
-
Flexible Solutions that Scale as Customers Grow
-
Massively Modular® Engineering with Data Hall Builds in 10-14 Weeks
-
Focus on Operational Excellence and Superior Customer Service
-
Proven Leading-Edge Technology Delivering Power Densities up to 900
Watts per Square Foot
-
National IX Replicates Enterprise Data Center Architecture
|
|
|
|
|
|
|
Corporate Headquarters
|
|
|
|
Senior Management
|
|
2101 Cedar Springs Road, Ste. 900
|
|
|
|
Gary Wojtaszek, President and CEO
|
|
|
|
John Gould, EVP & Chief Commercial Officer
|
|
Dallas, Texas 75201
|
|
|
|
Tesh Durvasula, EVP & President, Europe
|
|
|
|
Kellie Teal-Guess, EVP & Chief People Officer
|
|
Phone: (972) 350-0060
|
|
|
|
Diane Morefield, EVP & Chief Financial Officer
|
|
|
|
Robert Jackson, EVP General Counsel & Secretary
|
|
Website: www.cyrusone.com
|
|
|
|
Kevin Timmons, EVP & Chief Technology Officer
|
|
|
|
John Hatem, EVP Design, Construction & Operations
|
|
|
|
|
|
Jonathan Schildkraut, EVP & Chief Strategy Officer
|
|
|
|
|
|
|
|
Analyst Coverage
|
|
|
|
|
|
|
|
|
|
|
|
Firm
|
|
|
|
Analyst
|
|
|
|
Phone Number
|
|
Bank of America Merrill Lynch
|
|
|
|
Michael J. Funk
|
|
|
|
(646) 855-5664
|
|
Berenberg Capital Markets
|
|
|
|
Nate Crossett
|
|
|
|
(646) 949-9030
|
|
BMO Capital Markets
|
|
|
|
Ari Klein
|
|
|
|
(212) 885-4103
|
|
Citi
|
|
|
|
Mike Rollins
|
|
|
|
(212) 816-1116
|
|
Cowen and Company
|
|
|
|
Colby Synesael
|
|
|
|
(646) 562-1355
|
|
Credit Suisse
|
|
|
|
Sami Badri
|
|
|
|
(212) 538-1727
|
|
Deutsche Bank
|
|
|
|
Matthew Niknam
|
|
|
|
(212) 250-4711
|
|
Guggenheim Securities, LLC
|
|
|
|
Robert Gutman
|
|
|
|
(212) 518-9148
|
|
Jefferies
|
|
|
|
Jonathan Petersen
|
|
|
|
(212) 284-1705
|
|
J.P. Morgan
|
|
|
|
Richard Choe
|
|
|
|
(212) 622-6708
|
|
KeyBanc Capital Markets
|
|
|
|
Jordan Sadler
|
|
|
|
(917) 368-2280
|
|
MoffettNathanson
|
|
|
|
Nick Del Deo, CFA
|
|
|
|
(212) 519-0025
|
|
Morgan Stanley
|
|
|
|
Simon Flannery
|
|
|
|
(212) 761-6432
|
|
MUFG Securities
|
|
|
|
Stephen Bersey
|
|
|
|
(212) 405-7032
|
|
RBC Capital Markets
|
|
|
|
Jonathan Atkin
|
|
|
|
(415) 633-8589
|
|
Raymond James
|
|
|
|
Frank G. Louthan IV
|
|
|
|
(404) 442-5867
|
|
Stifel
|
|
|
|
Erik Rasmussen
|
|
|
|
(212) 271-3461
|
|
SunTrust Robinson Humphrey
|
|
|
|
Greg Miller
|
|
|
|
(212) 303-4169
|
|
UBS
|
|
|
|
John C. Hodulik, CFA
|
|
|
|
(212) 713-4226
|
|
Wells Fargo
|
|
|
|
Eric Luebchow
|
|
|
|
(312) 630-2386
|
|
William Blair
|
|
|
|
Jim Breen, CFA
|
|
|
|
(617) 235-7513
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Summary of Financial Data
(Dollars in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
|
|
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
Growth %
|
|
|
|
|
2018
|
|
2018
|
|
2017
|
|
Yr/Yr
|
|
Revenue
|
|
|
$
|
221.3
|
|
|
$
|
206.6
|
|
|
$
|
180.5
|
|
|
23
|
%
|
|
Net operating income
|
|
|
|
143.3
|
|
|
|
128.9
|
|
|
|
120.3
|
|
|
19
|
%
|
|
Net income (loss)
|
|
|
|
(105.8
|
)
|
|
|
(42.4
|
)
|
|
|
2.8
|
|
|
n/m
|
|
|
Funds from Operations ("FFO") - Nareit defined
|
|
|
|
(10.3
|
)
|
|
|
39.5
|
|
|
|
71.7
|
|
|
n/m
|
|
|
Normalized Funds from Operations ("Normalized FFO")
|
|
|
|
90.9
|
|
|
|
78.5
|
|
|
|
78.4
|
|
|
16
|
%
|
|
Weighted average number of common shares outstanding - diluted for
Normalized FFO
|
|
|
|
106.1
|
|
|
|
99.5
|
|
|
|
93.5
|
|
|
13
|
%
|
|
Income (loss) per share - basic
|
|
|
$
|
(1.00
|
)
|
|
$
|
(0.43
|
)
|
|
$
|
0.03
|
|
|
n/m
|
|
|
Income (loss) per share - diluted
|
|
|
$
|
(1.00
|
)
|
|
$
|
(0.43
|
)
|
|
$
|
0.03
|
|
|
n/m
|
|
|
Normalized FFO per diluted common share
|
|
|
$
|
0.86
|
|
|
$
|
0.79
|
|
|
$
|
0.84
|
|
|
2
|
%
|
|
Adjusted EBITDA
|
|
|
$
|
121.2
|
|
|
$
|
110.8
|
|
|
$
|
104.2
|
|
|
16
|
%
|
|
Adjusted EBITDA as a % of Revenue
|
|
|
|
54.8
|
%
|
|
|
53.6
|
%
|
|
|
57.7
|
%
|
|
(2.9) pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
September 30,
|
|
|
December 31,
|
|
|
Growth %
|
|
|
|
|
2018
|
|
|
2018
|
|
|
2017
|
|
|
Yr/Yr
|
|
Balance Sheet Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross investment in real estate
|
|
|
$
|
5,347.5
|
|
|
$
|
5,093.2
|
|
|
$
|
3,840.8
|
|
|
39
|
%
|
|
Accumulated depreciation
|
|
|
|
(1,054.5
|
)
|
|
|
(973.4
|
)
|
|
|
(782.4
|
)
|
|
35
|
%
|
|
Total investment in real estate, net
|
|
|
|
4,293.0
|
|
|
|
4,119.8
|
|
|
|
3,058.4
|
|
|
40
|
%
|
|
Cash and cash equivalents
|
|
|
|
64.4
|
|
|
|
61.0
|
|
|
|
151.9
|
|
|
(58
|
)%
|
|
Market value of common equity
|
|
|
|
5,728.5
|
|
|
|
6,709.9
|
|
|
|
5,723.1
|
|
|
—
|
%
|
|
Long-term debt
|
|
|
|
2,643.0
|
|
|
|
2,595.6
|
|
|
|
2,100.0
|
|
|
26
|
%
|
|
Net debt
|
|
|
|
2,612.0
|
|
|
|
2,571.5
|
|
|
|
1,958.2
|
|
|
33
|
%
|
|
Total enterprise value
|
|
|
|
8,340.5
|
|
|
|
9,281.4
|
|
|
|
7,681.3
|
|
|
9
|
%
|
|
Net debt to LQA Adjusted EBITDA(a)
|
|
|
5.4
|
x
|
|
5.4
|
x
|
|
4.7
|
x
|
|
0.7
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend Activity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per share
|
|
|
$
|
0.46
|
|
|
$
|
0.46
|
|
|
$
|
0.42
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data centers
|
|
|
|
48
|
|
|
|
47
|
|
|
|
45
|
|
|
7
|
%
|
|
Stabilized CSF (000)
|
|
|
|
3,540
|
|
|
|
3,396
|
|
|
|
2,653
|
|
|
33
|
%
|
|
Stabilized CSF % leased
|
|
|
|
92
|
%
|
|
|
91
|
%
|
|
|
93
|
%
|
|
(1) pts
|
|
Total CSF (000)
|
|
|
|
3,819
|
|
|
|
3,674
|
|
|
|
3,267
|
|
|
17
|
%
|
|
Total CSF % leased
|
|
|
|
88
|
%
|
|
|
86
|
%
|
|
|
83
|
%
|
|
5 pts
|
|
Total NRSF (000)
|
|
|
|
6,726
|
|
|
|
6,527
|
|
|
|
5,717
|
|
|
18
|
%
|
|
|
|
|
|
(a)
|
|
September 30, 2018 period adjusted to reflect a full quarter
Adjusted EBITDA contribution from the Zenium data centers based on
September results and the pro forma impact of equity proceeds
assuming settlement under the forward sale agreement.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Condensed Consolidated Statements of Operations
(Dollars in millions, except per share amounts)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
|
|
|
|
Twelve Months
|
|
|
|
|
|
|
|
|
|
Ended December 31,
|
|
Change
|
|
Ended December 31,
|
|
Change
|
|
|
|
|
2018
|
|
2017
|
|
$
|
|
%
|
|
2018
|
|
2017
|
|
$
|
|
%
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease and other revenues from customers
|
|
|
$
|
192.2
|
|
|
$
|
161.6
|
|
|
$
|
30.6
|
|
|
19
|
%
|
|
$
|
717.4
|
|
|
$
|
602.4
|
|
|
$
|
115.0
|
|
|
19
|
%
|
|
Metered power reimbursements
|
|
|
|
29.1
|
|
|
|
18.9
|
|
|
|
10.2
|
|
|
54
|
%
|
|
|
104.0
|
|
|
|
69.6
|
|
|
|
34.4
|
|
|
49
|
%
|
|
Revenue
|
|
|
$
|
221.3
|
|
|
$
|
180.5
|
|
|
$
|
40.8
|
|
|
23
|
%
|
|
$
|
821.4
|
|
|
$
|
672.0
|
|
|
|
149.4
|
|
|
22
|
%
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses
|
|
|
|
78.0
|
|
|
|
60.2
|
|
|
|
17.8
|
|
|
30
|
%
|
|
|
292.4
|
|
|
|
235.1
|
|
|
|
57.3
|
|
|
24
|
%
|
|
Sales and marketing
|
|
|
|
5.6
|
|
|
|
3.9
|
|
|
|
1.7
|
|
|
44
|
%
|
|
|
19.6
|
|
|
|
17.0
|
|
|
|
2.6
|
|
|
15
|
%
|
|
General and administrative
|
|
|
|
23.4
|
|
|
|
16.4
|
|
|
|
7.0
|
|
|
43
|
%
|
|
|
80.6
|
|
|
|
67.0
|
|
|
|
13.6
|
|
|
20
|
%
|
|
Depreciation and amortization
|
|
|
|
97.9
|
|
|
|
70.8
|
|
|
|
27.1
|
|
|
38
|
%
|
|
|
334.1
|
|
|
|
258.9
|
|
|
|
75.2
|
|
|
29
|
%
|
|
Transaction, acquisition, integration and other related expenses
|
|
|
|
1.6
|
|
|
|
5.3
|
|
|
|
(3.7
|
)
|
|
(70
|
)%
|
|
|
5.0
|
|
|
|
11.9
|
|
|
|
(6.9
|
)
|
|
(58
|
)%
|
|
Impairment losses
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
n/m
|
|
|
|
—
|
|
|
|
58.0
|
|
|
|
(58.0
|
)
|
|
n/m
|
|
|
Total operating expenses
|
|
|
|
206.5
|
|
|
|
156.6
|
|
|
|
49.9
|
|
|
32
|
%
|
|
|
731.7
|
|
|
|
647.9
|
|
|
|
83.8
|
|
|
13
|
%
|
|
Operating income
|
|
|
|
14.8
|
|
|
|
23.9
|
|
|
|
(9.1
|
)
|
|
n/m
|
|
|
|
89.7
|
|
|
|
24.1
|
|
|
|
65.6
|
|
|
n/m
|
|
|
Interest expense
|
|
|
|
(25.3
|
)
|
|
|
(20.1
|
)
|
|
|
(5.2
|
)
|
|
26
|
%
|
|
|
(94.7
|
)
|
|
|
(68.1
|
)
|
|
|
(26.6
|
)
|
|
39
|
%
|
|
Unrealized gain (loss) on marketable equity investment
|
|
|
|
(96.7
|
)
|
|
|
—
|
|
|
|
(96.7
|
)
|
|
n/m
|
|
|
|
9.9
|
|
|
|
—
|
|
|
|
9.9
|
|
|
n/m
|
|
|
Loss on early extinguishment of debt
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
n/m
|
|
|
|
(3.1
|
)
|
|
|
(36.5
|
)
|
|
|
33.4
|
|
|
(92
|
)%
|
|
Net income (loss) before income taxes
|
|
|
|
(107.2
|
)
|
|
|
3.8
|
|
|
|
(111.0
|
)
|
|
n/m
|
|
|
|
1.8
|
|
|
|
(80.5
|
)
|
|
|
82.3
|
|
|
n/m
|
|
|
Income tax expense
|
|
|
|
1.4
|
|
|
|
(1.0
|
)
|
|
|
2.4
|
|
|
n/m
|
|
|
|
(0.6
|
)
|
|
|
(3.0
|
)
|
|
|
2.4
|
|
|
(80
|
)%
|
|
Net income (loss)
|
|
|
$
|
(105.8
|
)
|
|
$
|
2.8
|
|
|
$
|
(108.6
|
)
|
|
n/m
|
|
|
$
|
1.2
|
|
|
$
|
(83.5
|
)
|
|
$
|
84.7
|
|
|
n/m
|
|
|
Income (loss) per share - basic
|
|
|
$
|
(1.00
|
)
|
|
$
|
0.03
|
|
|
$
|
(1.03
|
)
|
|
n/m
|
|
|
$
|
—
|
|
|
$
|
(0.95
|
)
|
|
$
|
0.95
|
|
|
n/m
|
|
|
Income (loss) per share - diluted
|
|
|
$
|
(1.00
|
)
|
|
$
|
0.03
|
|
|
$
|
(1.03
|
)
|
|
n/m
|
|
|
|
—
|
|
|
$
|
(0.95
|
)
|
|
$
|
0.95
|
|
|
n/m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Condensed Consolidated Balance Sheets
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
Change
|
|
|
|
|
2018
|
|
|
2017
|
|
|
$
|
|
|
%
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land
|
|
|
$
|
118.5
|
|
|
|
$
|
104.6
|
|
|
|
$
|
13.9
|
|
|
|
13
|
%
|
|
Buildings and improvements
|
|
|
|
1,677.5
|
|
|
|
|
1,371.4
|
|
|
|
|
306.1
|
|
|
|
22
|
%
|
|
Equipment
|
|
|
|
2,630.2
|
|
|
|
|
1,813.9
|
|
|
|
|
816.3
|
|
|
|
45
|
%
|
|
Gross operating real estate
|
|
|
|
4,426.2
|
|
|
|
|
3,289.9
|
|
|
|
|
1,136.3
|
|
|
|
35
|
%
|
|
Less accumulated depreciation
|
|
|
|
(1,054.5
|
)
|
|
|
|
(782.4
|
)
|
|
|
|
(272.1
|
)
|
|
|
35
|
%
|
|
Net operating real estate
|
|
|
|
3,371.7
|
|
|
|
|
2,507.5
|
|
|
|
|
864.2
|
|
|
|
34
|
%
|
|
Construction in progress, including land under development
|
|
|
|
744.9
|
|
|
|
|
487.1
|
|
|
|
|
257.8
|
|
|
|
53
|
%
|
|
Land held for future development
|
|
|
|
176.4
|
|
|
|
|
63.8
|
|
|
|
|
112.6
|
|
|
|
n/m
|
|
|
Total investment in real estate, net
|
|
|
|
4,293.0
|
|
|
|
|
3,058.4
|
|
|
|
|
1,234.6
|
|
|
|
40
|
%
|
|
Cash and cash equivalents
|
|
|
|
64.4
|
|
|
|
|
151.9
|
|
|
|
|
(87.5
|
)
|
|
|
(58
|
)%
|
|
Rent and other receivables, net
|
|
|
|
106.2
|
|
|
|
|
87.2
|
|
|
|
|
19.0
|
|
|
|
22
|
%
|
|
Equity investment
|
|
|
|
198.1
|
|
|
|
|
175.6
|
|
|
|
|
22.5
|
|
|
|
13
|
%
|
|
Goodwill
|
|
|
|
455.1
|
|
|
|
|
455.1
|
|
|
|
|
—
|
|
|
|
—
|
%
|
|
Intangible assets, net
|
|
|
|
235.7
|
|
|
|
|
203.0
|
|
|
|
|
32.7
|
|
|
|
16
|
%
|
|
Other assets
|
|
|
|
240.0
|
|
|
|
|
180.9
|
|
|
|
|
59.1
|
|
|
|
33
|
%
|
|
Total assets
|
|
|
$
|
5,592.5
|
|
|
|
$
|
4,312.1
|
|
|
|
$
|
1,280.4
|
|
|
|
30
|
%
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt, net
|
|
|
$
|
2,624.7
|
|
|
|
$
|
2,089.4
|
|
|
|
$
|
535.3
|
|
|
|
26
|
%
|
|
Capital lease obligations
|
|
|
|
33.4
|
|
|
|
|
10.1
|
|
|
|
|
23.3
|
|
|
|
n/m
|
|
|
Lease financing arrangements
|
|
|
|
123.3
|
|
|
|
|
131.9
|
|
|
|
|
(8.6
|
)
|
|
|
(7
|
)%
|
|
Construction costs payable
|
|
|
|
195.3
|
|
|
|
|
115.5
|
|
|
|
|
79.8
|
|
|
|
69
|
%
|
|
Accounts payable and accrued expenses
|
|
|
|
121.3
|
|
|
|
|
97.9
|
|
|
|
|
23.4
|
|
|
|
24
|
%
|
|
Dividends payable
|
|
|
|
51.0
|
|
|
|
|
41.8
|
|
|
|
|
9.2
|
|
|
|
22
|
%
|
|
Deferred revenue and prepaid rents
|
|
|
|
148.6
|
|
|
|
|
111.6
|
|
|
|
|
37.0
|
|
|
|
33
|
%
|
|
Deferred tax liability
|
|
|
|
68.9
|
|
|
|
|
—
|
|
|
|
|
68.9
|
|
|
|
n/m
|
|
|
Total liabilities
|
|
|
|
3,366.5
|
|
|
|
|
2,598.2
|
|
|
|
|
768.3
|
|
|
|
30
|
%
|
|
Stockholders' 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
108,329,314 and 96,137,874 shares issued and outstanding at December
31, 2018 and December 31, 2017, respectively
|
|
|
|
1.1
|
|
|
|
|
1.0
|
|
|
|
|
0.1
|
|
|
|
—
|
%
|
|
Additional paid in capital
|
|
|
|
2,837.4
|
|
|
|
|
2,125.6
|
|
|
|
|
711.8
|
|
|
|
33
|
%
|
|
Accumulated deficit
|
|
|
|
(600.2
|
)
|
|
|
|
(486.9
|
)
|
|
|
|
(113.3
|
)
|
|
|
23
|
%
|
|
Accumulated other comprehensive income (loss)
|
|
|
|
(12.3
|
)
|
|
|
|
74.2
|
|
|
|
|
(86.5
|
)
|
|
|
n/m
|
|
|
Total stockholders' equity
|
|
|
|
2,226.0
|
|
|
|
|
1,713.9
|
|
|
|
|
512.1
|
|
|
|
30
|
%
|
|
Total liabilities and equity
|
|
|
$
|
5,592.5
|
|
|
|
$
|
4,312.1
|
|
|
|
$
|
1,280.4
|
|
|
|
30
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Condensed Consolidated Statements of Operations
(Dollars in millions, except per share amounts)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended:
|
|
|
December 31,
|
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
|
2017
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease and other revenues from customers
|
|
|
$
|
192.2
|
|
|
|
$
|
177.6
|
|
|
|
$
|
172.4
|
|
|
|
$
|
175.2
|
|
|
|
$
|
161.6
|
|
|
Metered power reimbursements
|
|
|
29.1
|
|
|
|
29.0
|
|
|
|
24.5
|
|
|
|
21.4
|
|
|
|
18.9
|
|
|
Revenue
|
|
|
221.3
|
|
|
|
206.6
|
|
|
|
196.9
|
|
|
|
196.6
|
|
|
|
180.5
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses
|
|
|
78.0
|
|
|
|
77.7
|
|
|
|
68.9
|
|
|
|
67.8
|
|
|
|
60.2
|
|
|
Sales and marketing
|
|
|
5.6
|
|
|
|
4.3
|
|
|
|
4.4
|
|
|
|
5.3
|
|
|
|
3.9
|
|
|
General and administrative
|
|
|
23.4
|
|
|
|
19.3
|
|
|
|
18.6
|
|
|
|
19.3
|
|
|
|
16.4
|
|
|
Depreciation and amortization
|
|
|
97.9
|
|
|
|
84.0
|
|
|
|
77.6
|
|
|
|
74.6
|
|
|
|
70.8
|
|
|
Transaction, acquisition, integration and other related expenses
|
|
|
1.6
|
|
|
|
1.1
|
|
|
|
0.4
|
|
|
|
1.9
|
|
|
|
5.3
|
|
|
Impairment losses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Total operating expenses
|
|
|
206.5
|
|
|
|
186.4
|
|
|
|
169.9
|
|
|
|
168.9
|
|
|
|
156.6
|
|
|
Operating income
|
|
|
14.8
|
|
|
|
20.2
|
|
|
|
27.0
|
|
|
|
27.7
|
|
|
|
23.9
|
|
|
Interest expense
|
|
|
(25.3
|
)
|
|
|
(25.8
|
)
|
|
|
(22.8
|
)
|
|
|
(20.8
|
)
|
|
|
(20.1
|
)
|
|
Unrealized gain (loss) on marketable equity investment
|
|
|
(96.7
|
)
|
|
|
(36.6
|
)
|
|
|
102.7
|
|
|
|
40.5
|
|
|
|
—
|
|
|
Loss on early extinguishment of debt
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(3.1
|
)
|
|
|
—
|
|
|
Net income (loss) before income taxes
|
|
|
(107.2
|
)
|
|
|
(42.2
|
)
|
|
|
106.9
|
|
|
|
44.3
|
|
|
|
3.8
|
|
|
Income tax expense
|
|
|
1.4
|
|
|
|
(0.2
|
)
|
|
|
(1.0
|
)
|
|
|
(0.8
|
)
|
|
|
(1.0
|
)
|
|
Net income (loss)
|
|
|
$
|
(105.8
|
)
|
|
|
$
|
(42.4
|
)
|
|
|
$
|
105.9
|
|
|
|
$
|
43.5
|
|
|
|
$
|
2.8
|
|
|
Income (loss) per share - basic
|
|
|
$
|
(1.00
|
)
|
|
|
$
|
(0.43
|
)
|
|
|
$
|
1.07
|
|
|
|
$
|
0.45
|
|
|
|
$
|
0.03
|
|
|
Income (loss) per share - diluted
|
|
|
$
|
(1.00
|
)
|
|
|
$
|
(0.43
|
)
|
|
|
$
|
1.06
|
|
|
|
$
|
0.45
|
|
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Condensed Consolidated Balance Sheets
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
|
2017
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land
|
|
|
$
|
118.5
|
|
|
|
$
|
125.2
|
|
|
|
$
|
107.4
|
|
|
|
$
|
104.6
|
|
|
|
$
|
104.6
|
|
|
Buildings and improvements
|
|
|
1,677.5
|
|
|
|
1,587.3
|
|
|
|
1,461.1
|
|
|
|
1,400.8
|
|
|
|
1,371.4
|
|
|
Equipment
|
|
|
2,630.2
|
|
|
|
2,452.5
|
|
|
|
2,050.3
|
|
|
|
1,959.5
|
|
|
|
1,813.9
|
|
|
Gross operating real estate
|
|
|
4,426.2
|
|
|
|
4,165.0
|
|
|
|
3,618.8
|
|
|
|
3,464.9
|
|
|
|
3,289.9
|
|
|
Less accumulated depreciation
|
|
|
(1,054.5
|
)
|
|
|
(973.4
|
)
|
|
|
(900.3
|
)
|
|
|
(836.4
|
)
|
|
|
(782.4
|
)
|
|
Net operating real estate
|
|
|
3,371.7
|
|
|
|
3,191.6
|
|
|
|
2,718.5
|
|
|
|
2,628.5
|
|
|
|
2,507.5
|
|
|
Construction in progress, including land under development
|
|
|
744.9
|
|
|
|
738.6
|
|
|
|
452.6
|
|
|
|
435.3
|
|
|
|
487.1
|
|
|
Land held for future development
|
|
|
176.4
|
|
|
|
189.6
|
|
|
|
74.2
|
|
|
|
54.4
|
|
|
|
63.8
|
|
|
Total investment in real estate, net
|
|
|
4,293.0
|
|
|
|
4,119.8
|
|
|
|
3,245.3
|
|
|
|
3,118.2
|
|
|
|
3,058.4
|
|
|
Cash and cash equivalents
|
|
|
64.4
|
|
|
|
61.0
|
|
|
|
116.2
|
|
|
|
228.7
|
|
|
|
151.9
|
|
|
Rent and other receivables, net
|
|
|
106.2
|
|
|
|
104.5
|
|
|
|
87.7
|
|
|
|
93.1
|
|
|
|
87.2
|
|
|
Equity investment
|
|
|
198.1
|
|
|
|
282.2
|
|
|
|
318.8
|
|
|
|
216.1
|
|
|
|
175.6
|
|
|
Goodwill
|
|
|
455.1
|
|
|
|
455.1
|
|
|
|
455.1
|
|
|
|
455.1
|
|
|
|
455.1
|
|
|
Intangible assets, net
|
|
|
235.7
|
|
|
|
248.4
|
|
|
|
190.5
|
|
|
|
196.8
|
|
|
|
203.0
|
|
|
Other assets
|
|
|
240.0
|
|
|
|
222.1
|
|
|
|
215.1
|
|
|
|
190.3
|
|
|
|
180.9
|
|
|
Total assets
|
|
|
$
|
5,592.5
|
|
|
|
$
|
5,493.1
|
|
|
|
$
|
4,628.7
|
|
|
|
$
|
4,498.3
|
|
|
|
$
|
4,312.1
|
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt, net
|
|
|
$
|
2,624.7
|
|
|
|
$
|
2,576.2
|
|
|
|
$
|
2,179.5
|
|
|
|
$
|
2,178.3
|
|
|
|
$
|
2,089.4
|
|
|
Capital lease obligations
|
|
|
33.4
|
|
|
|
36.9
|
|
|
|
14.9
|
|
|
|
15.9
|
|
|
|
10.1
|
|
|
Lease financing arrangements
|
|
|
123.3
|
|
|
|
125.8
|
|
|
|
127.8
|
|
|
|
131.3
|
|
|
|
131.9
|
|
|
Construction costs payable
|
|
|
195.3
|
|
|
|
160.5
|
|
|
|
113.3
|
|
|
|
89.0
|
|
|
|
115.5
|
|
|
Accounts payable and accrued expenses
|
|
|
121.3
|
|
|
|
96.8
|
|
|
|
91.4
|
|
|
|
66.7
|
|
|
|
97.9
|
|
|
Dividends payable
|
|
|
51.0
|
|
|
|
49.7
|
|
|
|
46.5
|
|
|
|
46.4
|
|
|
|
41.8
|
|
|
Deferred revenue and prepaid rents
|
|
|
148.6
|
|
|
|
139.5
|
|
|
|
127.1
|
|
|
|
116.1
|
|
|
|
111.6
|
|
|
Deferred tax liability
|
|
|
68.9
|
|
|
|
68.7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Total liabilities
|
|
|
3,366.5
|
|
|
|
3,254.1
|
|
|
|
2,700.5
|
|
|
|
2,643.7
|
|
|
|
2,598.2
|
|
|
Stockholders' 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
108,329,314 and 96,137,874 shares issued and outstanding at December
31, 2018 and December 31, 2017, respectively
|
|
|
1.1
|
|
|
|
1.1
|
|
|
|
1.0
|
|
|
|
1.0
|
|
|
|
1.0
|
|
|
Additional paid in capital
|
|
|
2,837.4
|
|
|
|
2,685.3
|
|
|
|
2,281.5
|
|
|
|
2,268.0
|
|
|
|
2,125.6
|
|
|
Accumulated deficit
|
|
|
(600.2
|
)
|
|
|
(444.3
|
)
|
|
|
(353.0
|
)
|
|
|
(413.1
|
)
|
|
|
(486.9
|
)
|
|
Accumulated other comprehensive income (loss)
|
|
|
(12.3
|
)
|
|
|
(3.1
|
)
|
|
|
(1.3
|
)
|
|
|
(1.3
|
)
|
|
|
74.2
|
|
|
Total stockholders' equity
|
|
|
2,226.0
|
|
|
|
2,239.0
|
|
|
|
1,928.2
|
|
|
|
1,854.6
|
|
|
|
1,713.9
|
|
|
Total liabilities and equity
|
|
|
$
|
5,592.5
|
|
|
|
$
|
5,493.1
|
|
|
|
$
|
4,628.7
|
|
|
|
$
|
4,498.3
|
|
|
|
$
|
4,312.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Condensed Consolidated Statements of Cash Flow
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve MonthsEnded December31, 2018
|
|
|
Twelve MonthsEnded December31, 2017
|
|
|
Three MonthsEnded December31, 2018
|
|
|
Three MonthsEnded December31, 2017
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
1.2
|
|
|
|
$
|
(83.5
|
)
|
|
|
$
|
(105.8
|
)
|
|
|
$
|
2.8
|
|
|
Adjustments to reconcile net income (loss) to net cash provided
by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
334.1
|
|
|
|
258.9
|
|
|
|
97.9
|
|
|
|
70.8
|
|
|
Interest expense amortization, net
|
|
|
4.0
|
|
|
|
4.2
|
|
|
|
1.0
|
|
|
|
0.8
|
|
|
Stock-based compensation expense
|
|
|
17.5
|
|
|
|
14.7
|
|
|
|
4.5
|
|
|
|
3.1
|
|
|
Provision for bad debt expense
|
|
|
2.6
|
|
|
|
0.2
|
|
|
|
2.0
|
|
|
|
(0.3
|
)
|
|
Unrealized (gain) loss on marketable equity investment
|
|
|
(9.9
|
)
|
|
|
—
|
|
|
|
96.7
|
|
|
|
—
|
|
|
Loss on early extinguishment of debt
|
|
|
3.1
|
|
|
|
36.5
|
|
|
|
—
|
|
|
|
—
|
|
|
Impairment losses
|
|
|
—
|
|
|
|
58.0
|
|
|
|
—
|
|
|
|
—
|
|
|
Other
|
|
|
(0.6
|
)
|
|
|
1.5
|
|
|
|
(0.6
|
)
|
|
|
0.2
|
|
|
Change in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rent and other receivables, net and other assets
|
|
|
(80.2
|
)
|
|
|
(64.3
|
)
|
|
|
(24.8
|
)
|
|
|
(10.6
|
)
|
|
Accounts payable and accrued expenses
|
|
|
3.0
|
|
|
|
29.3
|
|
|
|
26.4
|
|
|
|
25.8
|
|
|
Deferred revenue and prepaid rents
|
|
|
34.5
|
|
|
|
34.0
|
|
|
|
9.1
|
|
|
|
6.8
|
|
|
Net cash provided by operating activities
|
|
|
309.3
|
|
|
|
289.5
|
|
|
|
106.4
|
|
|
|
99.4
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset acquisitions, primarily real estate, net of cash acquired
|
|
|
(462.8
|
)
|
|
|
(492.3
|
)
|
|
|
(1.0
|
)
|
|
|
—
|
|
|
Investment in real estate
|
|
|
(865.7
|
)
|
|
|
(914.5
|
)
|
|
|
(234.5
|
)
|
|
|
(205.4
|
)
|
|
Equity investment
|
|
|
(12.6
|
)
|
|
|
(100.0
|
)
|
|
|
(12.6
|
)
|
|
|
(100.0
|
)
|
|
Net cash used in investing activities
|
|
|
(1,341.1
|
)
|
|
|
(1,506.8
|
)
|
|
|
(248.1
|
)
|
|
|
(305.4
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stock, net
|
|
|
699.6
|
|
|
|
705.7
|
|
|
|
147.7
|
|
|
|
296.9
|
|
|
Dividends paid
|
|
|
(181.1
|
)
|
|
|
(145.7
|
)
|
|
|
(48.8
|
)
|
|
|
(38.3
|
)
|
|
Proceeds from debt, net
|
|
|
1,988.3
|
|
|
|
2,558.4
|
|
|
|
323.2
|
|
|
|
612.4
|
|
|
Payments on debt
|
|
|
(1,547.4
|
)
|
|
|
(1,749.8
|
)
|
|
|
(274.7
|
)
|
|
|
(537.7
|
)
|
|
Payments on capital lease obligations and lease financing
arrangements
|
|
|
(9.5
|
)
|
|
|
(9.8
|
)
|
|
|
(1.7
|
)
|
|
|
(2.5
|
)
|
|
Interest paid by lenders on the issuance of the senior notes
|
|
|
—
|
|
|
|
2.7
|
|
|
|
—
|
|
|
|
2.7
|
|
|
Tax payment upon exercise of equity awards
|
|
|
(5.2
|
)
|
|
|
(6.9
|
)
|
|
|
(0.1
|
)
|
|
|
(0.3
|
)
|
|
Net cash provided by financing activities
|
|
|
944.7
|
|
|
|
1,354.6
|
|
|
|
145.6
|
|
|
|
333.2
|
|
|
Effect of exchange rate changes on cash, cash equivalents and
restricted cash
|
|
|
(0.4
|
)
|
|
|
—
|
|
|
|
(0.5
|
)
|
|
|
—
|
|
|
Net increase (decrease) in cash, cash equivalents and restricted cash
|
|
|
(87.5
|
)
|
|
|
137.3
|
|
|
|
3.4
|
|
|
|
127.2
|
|
|
Cash, cash equivalents and restricted cash at beginning of period
|
|
|
151.9
|
|
|
|
14.6
|
|
|
|
61.0
|
|
|
|
24.7
|
|
|
Cash, cash equivalents and restricted cash at end of period
|
|
|
$
|
64.4
|
|
|
|
$
|
151.9
|
|
|
|
$
|
64.4
|
|
|
|
$
|
151.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for interest, net of amounts capitalized of $24.4 million
and $17.0 million in 2018 and 2017, respectively
|
|
|
$
|
115.4
|
|
|
|
$
|
68.8
|
|
|
|
$
|
16.9
|
|
|
|
$
|
10.6
|
|
|
Cash paid for income taxes
|
|
|
3.4
|
|
|
|
2.2
|
|
|
|
0.1
|
|
|
|
0.3
|
|
|
Capitalized interest
|
|
|
24.4
|
|
|
|
17.0
|
|
|
|
8.5
|
|
|
|
4.6
|
|
|
Non-cash investing and financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction costs and other payables
|
|
|
195.3
|
|
|
|
115.5
|
|
|
|
195.3
|
|
|
|
115.5
|
|
|
Dividends payable
|
|
|
51.0
|
|
|
|
41.8
|
|
|
|
51.0
|
|
|
|
41.8
|
|
|
Debt assumed in asset acquisition
|
|
|
86.3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Capital lease obligation assumed
|
|
|
25.0
|
|
|
|
2.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Net Operating Income and Reconciliation of Net Income (Loss) to
Adjusted EBITDA
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
December 31,
|
|
Change
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
|
|
|
2018
|
|
2017
|
|
$
|
|
%
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
Net Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
821.4
|
|
|
$
|
672.0
|
|
|
$
|
149.4
|
|
|
22
|
%
|
|
$
|
221.3
|
|
|
$
|
206.6
|
|
|
$
|
196.9
|
|
|
$
|
196.6
|
|
|
$
|
180.5
|
|
|
Property operating expenses
|
|
|
|
292.4
|
|
|
|
235.1
|
|
|
|
57.3
|
|
|
24
|
%
|
|
|
78.0
|
|
|
|
77.7
|
|
|
|
68.9
|
|
|
|
67.8
|
|
|
|
60.2
|
|
|
Net Operating Income (NOI)
|
|
|
$
|
529.0
|
|
|
$
|
436.9
|
|
|
$
|
92.1
|
|
|
21
|
%
|
|
$
|
143.3
|
|
|
$
|
128.9
|
|
|
$
|
128.0
|
|
|
$
|
128.8
|
|
|
$
|
120.3
|
|
|
NOI as a % of Revenue
|
|
|
|
64.4
|
%
|
|
|
65.0
|
%
|
|
|
|
|
|
|
64.8
|
%
|
|
|
62.4
|
%
|
|
|
65.0
|
%
|
|
|
65.5
|
%
|
|
|
66.6
|
%
|
|
Reconciliation of Net Income (Loss) to Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
1.2
|
|
|
$
|
(83.5
|
)
|
|
$
|
84.7
|
|
|
n/m
|
|
|
$
|
(105.8
|
)
|
|
$
|
(42.4
|
)
|
|
$
|
105.9
|
|
|
$
|
43.5
|
|
|
$
|
2.8
|
|
|
Interest expense
|
|
|
|
94.7
|
|
|
|
68.1
|
|
|
|
26.6
|
|
|
39
|
%
|
|
|
25.3
|
|
|
|
25.8
|
|
|
|
22.8
|
|
|
|
20.8
|
|
|
|
20.1
|
|
|
Income tax expense
|
|
|
|
0.6
|
|
|
|
3.0
|
|
|
|
(2.4
|
)
|
|
(80
|
)%
|
|
|
(1.4
|
)
|
|
|
0.2
|
|
|
|
1.0
|
|
|
|
0.8
|
|
|
|
1.0
|
|
|
Depreciation and amortization
|
|
|
|
334.1
|
|
|
|
258.9
|
|
|
|
75.2
|
|
|
29
|
%
|
|
|
97.9
|
|
|
|
84.0
|
|
|
|
77.6
|
|
|
|
74.6
|
|
|
|
70.8
|
|
|
Impairment losses and loss on disposals
|
|
|
|
—
|
|
|
|
58.0
|
|
|
|
(58.0
|
)
|
|
n/m
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.2
|
|
|
EBITDA (Nareit definition)(a)
|
|
|
$
|
430.6
|
|
|
$
|
304.5
|
|
|
|
126.1
|
|
|
41
|
%
|
|
$
|
16.0
|
|
|
$
|
67.6
|
|
|
$
|
207.3
|
|
|
$
|
139.7
|
|
|
$
|
94.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction, acquisition, integration and other related expenses
|
|
|
|
4.8
|
|
|
|
11.9
|
|
|
|
(7.1
|
)
|
|
(60
|
)%
|
|
|
1.4
|
|
|
|
1.1
|
|
|
|
0.4
|
|
|
|
1.9
|
|
|
|
5.1
|
|
|
Legal claim costs
|
|
|
|
0.6
|
|
|
|
1.1
|
|
|
|
(0.5
|
)
|
|
(45
|
)%
|
|
|
0.2
|
|
|
|
0.1
|
|
|
|
0.1
|
|
|
|
0.2
|
|
|
|
—
|
|
|
Stock-based compensation expense
|
|
|
|
17.5
|
|
|
|
14.7
|
|
|
|
2.8
|
|
|
19
|
%
|
|
|
4.5
|
|
|
|
4.6
|
|
|
|
4.5
|
|
|
|
3.9
|
|
|
|
3.1
|
|
|
Severance and management transition costs
|
|
|
|
2.3
|
|
|
|
0.5
|
|
|
|
1.8
|
|
|
n/m
|
|
|
|
1.6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.7
|
|
|
|
—
|
|
|
Loss on early extinguishment of debt
|
|
|
|
3.1
|
|
|
|
36.5
|
|
|
|
(33.4
|
)
|
|
n/m
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3.1
|
|
|
|
—
|
|
|
New accounting standards and regulatory compliance and the related
system implementation costs
|
|
|
|
3.0
|
|
|
|
2.4
|
|
|
|
0.6
|
|
|
25
|
%
|
|
|
0.7
|
|
|
|
0.8
|
|
|
|
1.0
|
|
|
|
0.5
|
|
|
|
1.1
|
|
|
Unrealized (gain) loss on marketable equity investment
|
|
|
|
(9.9
|
)
|
|
|
—
|
|
|
|
(9.9
|
)
|
|
n/m
|
|
|
|
96.7
|
|
|
|
36.6
|
|
|
|
(102.7
|
)
|
|
|
(40.5
|
)
|
|
|
—
|
|
|
Other expenses
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
0.1
|
|
|
n/m
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Adjusted EBITDA
|
|
|
$
|
452.1
|
|
|
$
|
371.6
|
|
|
|
80.5
|
|
|
22
|
%
|
|
$
|
121.2
|
|
|
$
|
110.8
|
|
|
$
|
110.6
|
|
|
$
|
109.5
|
|
|
$
|
104.2
|
|
|
Adjusted EBITDA as a % of Revenue
|
|
|
|
55.0
|
%
|
|
|
55.3
|
%
|
|
|
|
|
|
|
54.8
|
%
|
|
|
53.6
|
%
|
|
|
56.2
|
%
|
|
|
55.7
|
%
|
|
|
57.7
|
%
|
|
|
|
|
|
(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 impairment losses and loss on disposals. 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
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
Change
|
|
|
December 31,
|
|
|
Change
|
|
|
|
2018
|
|
|
2017
|
|
|
$
|
|
|
%
|
|
|
2018
|
|
|
2017
|
|
|
$
|
|
|
%
|
|
Net Income (Loss)
|
|
|
$
|
(105.8
|
)
|
|
|
$
|
2.8
|
|
|
$
|
(108.6
|
)
|
|
|
n/m
|
|
|
|
$
|
1.2
|
|
|
|
$
|
(83.5
|
)
|
|
|
$
|
84.7
|
|
|
|
n/m
|
|
|
Sales and marketing expenses
|
|
|
|
5.6
|
|
|
|
|
3.9
|
|
|
|
1.7
|
|
|
|
44
|
%
|
|
|
|
19.6
|
|
|
|
|
17.0
|
|
|
|
|
2.6
|
|
|
|
15
|
%
|
|
General and administrative expenses
|
|
|
|
23.4
|
|
|
|
|
16.4
|
|
|
|
7.0
|
|
|
|
43
|
%
|
|
|
|
80.6
|
|
|
|
|
67.0
|
|
|
|
|
13.6
|
|
|
|
20
|
%
|
|
Depreciation and amortization expenses
|
|
|
|
97.9
|
|
|
|
|
70.8
|
|
|
|
27.1
|
|
|
|
38
|
%
|
|
|
|
334.1
|
|
|
|
|
258.9
|
|
|
|
|
75.2
|
|
|
|
29
|
%
|
|
Transaction, acquisition, integration and other related expenses
|
|
|
|
1.6
|
|
|
|
|
5.1
|
|
|
|
(3.5
|
)
|
|
|
(69
|
)%
|
|
|
|
5.0
|
|
|
|
|
11.9
|
|
|
|
|
(6.9
|
)
|
|
|
(58
|
)%
|
|
Impairment losses and loss on disposal
|
|
|
|
—
|
|
|
|
|
0.2
|
|
|
|
(0.2
|
)
|
|
|
n/m
|
|
|
|
|
—
|
|
|
|
|
58.0
|
|
|
|
|
(58.0
|
)
|
|
|
n/m
|
|
|
Interest expense
|
|
|
|
25.3
|
|
|
|
|
20.1
|
|
|
|
5.2
|
|
|
|
26
|
%
|
|
|
|
94.7
|
|
|
|
|
68.1
|
|
|
|
|
26.6
|
|
|
|
39
|
%
|
|
Unrealized (gain) loss on marketable equity investment
|
|
|
|
96.7
|
|
|
|
|
—
|
|
|
|
96.7
|
|
|
|
n/m
|
|
|
|
|
(9.9
|
)
|
|
|
|
—
|
|
|
|
|
(9.9
|
)
|
|
|
n/m
|
|
|
Loss on early extinguishment of debt
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
%
|
|
|
|
3.1
|
|
|
|
|
36.5
|
|
|
|
|
(33.4
|
)
|
|
|
(92
|
)%
|
|
Income tax expense
|
|
|
|
(1.4
|
)
|
|
|
|
1.0
|
|
|
|
(2.4
|
)
|
|
|
n/m
|
|
|
|
|
0.6
|
|
|
|
|
3.0
|
|
|
|
|
(2.4
|
)
|
|
|
(80
|
)%
|
|
Net Operating Income
|
|
|
$
|
143.3
|
|
|
|
$
|
120.3
|
|
|
$
|
23.0
|
|
|
|
19
|
%
|
|
|
$
|
529.0
|
|
|
|
$
|
436.9
|
|
|
|
$
|
92.1
|
|
|
|
21
|
%
|
|
|
|
CyrusOne Inc.
Reconciliation of Net Income (Loss) to FFO and Normalized FFO
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
December 31,
|
|
|
Change
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
|
|
|
2018
|
|
2017
|
|
|
$
|
|
%
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
Reconciliation of Net Income (Loss) to FFO and Normalized FFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
1.2
|
|
|
$
|
(83.5
|
)
|
|
|
$
|
84.7
|
|
|
|
n/m
|
|
|
$
|
(105.8
|
)
|
|
$
|
(42.4
|
)
|
|
$
|
105.9
|
|
|
$
|
43.5
|
|
|
$
|
2.8
|
|
|
Real estate depreciation and amortization
|
|
|
|
|
325.5
|
|
|
|
250.6
|
|
|
|
|
74.9
|
|
|
|
30
|
%
|
|
|
95.5
|
|
|
|
81.9
|
|
|
|
75.6
|
|
|
|
72.5
|
|
|
|
68.9
|
|
|
Impairment losses
|
|
|
|
|
—
|
|
|
|
58.0
|
|
|
|
|
(58.0
|
)
|
|
|
n/m
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Funds from Operations ("FFO") - Nareit defined
|
|
|
|
$
|
326.7
|
|
|
$
|
225.1
|
|
|
|
$
|
101.6
|
|
|
|
45
|
%
|
|
$
|
(10.3
|
)
|
|
$
|
39.5
|
|
|
$
|
181.5
|
|
|
$
|
116.0
|
|
|
$
|
71.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on early extinguishment of debt
|
|
|
|
|
3.1
|
|
|
|
36.5
|
|
|
|
|
(33.4
|
)
|
|
|
n/m
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3.1
|
|
|
|
—
|
|
|
Unrealized (gain) loss on marketable equity investment
|
|
|
|
|
(9.9
|
)
|
|
|
—
|
|
|
|
|
(9.9
|
)
|
|
|
n/m
|
|
|
|
96.7
|
|
|
|
36.6
|
|
|
|
(102.7
|
)
|
|
|
(40.5
|
)
|
|
|
—
|
|
|
New accounting standards and regulatory compliance and the related
system implementation costs
|
|
|
|
|
3.0
|
|
|
|
2.4
|
|
|
|
|
0.6
|
|
|
|
n/m
|
|
|
|
0.7
|
|
|
|
0.8
|
|
|
|
1.0
|
|
|
|
0.5
|
|
|
|
1.1
|
|
|
Amortization of tradenames
|
|
|
|
|
1.7
|
|
|
|
1.4
|
|
|
|
|
0.3
|
|
|
|
21
|
%
|
|
|
0.6
|
|
|
|
0.4
|
|
|
|
0.4
|
|
|
|
0.3
|
|
|
|
0.3
|
|
|
Transaction, acquisition, integration and other related expenses
|
|
|
|
|
4.8
|
|
|
|
11.9
|
|
|
|
|
(7.1
|
)
|
|
|
(60
|
)%
|
|
|
1.4
|
|
|
|
1.1
|
|
|
|
0.4
|
|
|
|
1.9
|
|
|
|
5.3
|
|
|
Severance and management transition costs
|
|
|
|
|
2.3
|
|
|
|
0.5
|
|
|
|
|
1.8
|
|
|
|
n/m
|
|
|
|
1.6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.7
|
|
|
|
—
|
|
|
Legal claim costs
|
|
|
|
|
0.6
|
|
|
|
1.1
|
|
|
|
|
(0.5
|
)
|
|
|
(45
|
)%
|
|
|
0.2
|
|
|
|
0.1
|
|
|
|
0.1
|
|
|
|
0.2
|
|
|
|
—
|
|
|
Normalized Funds from Operations (Normalized FFO)
|
|
|
|
$
|
332.3
|
|
|
$
|
278.9
|
|
|
|
$
|
53.4
|
|
|
|
19
|
%
|
|
$
|
90.9
|
|
|
$
|
78.5
|
|
|
$
|
80.7
|
|
|
$
|
82.2
|
|
|
$
|
78.4
|
|
|
Normalized FFO per diluted common share
|
|
|
|
$
|
3.31
|
|
|
$
|
3.12
|
|
|
|
$
|
0.19
|
|
|
|
6
|
%
|
|
$
|
0.86
|
|
|
$
|
0.79
|
|
|
$
|
0.81
|
|
|
$
|
0.85
|
|
|
$
|
0.84
|
|
|
Weighted average diluted common shares outstanding
|
|
|
|
|
100.4
|
|
|
|
89.4
|
|
|
|
|
11.0
|
|
|
|
12
|
%
|
|
|
106.1
|
|
|
|
99.5
|
|
|
|
99.4
|
|
|
|
96.6
|
|
|
|
93.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of deferred financing costs and bond premium
|
|
|
|
|
4.0
|
|
|
|
4.3
|
|
|
|
|
(0.3
|
)
|
|
|
(7
|
)%
|
|
|
1.1
|
|
|
|
1.1
|
|
|
|
1.1
|
|
|
|
0.7
|
|
|
|
0.9
|
|
|
Stock-based compensation expense
|
|
|
|
|
17.5
|
|
|
|
14.7
|
|
|
|
|
2.8
|
|
|
|
19
|
%
|
|
|
4.5
|
|
|
|
4.6
|
|
|
|
4.5
|
|
|
|
3.9
|
|
|
|
3.1
|
|
|
Non-real estate depreciation and amortization
|
|
|
|
|
6.9
|
|
|
|
6.9
|
|
|
|
|
—
|
|
|
|
n/m
|
|
|
|
1.8
|
|
|
|
1.7
|
|
|
|
1.6
|
|
|
|
1.8
|
|
|
|
1.6
|
|
|
Straight line rent adjustments(a)
|
|
|
|
|
(27.7
|
)
|
|
|
(32.5
|
)
|
|
|
|
4.8
|
|
|
|
(15
|
)%
|
|
|
(8.9
|
)
|
|
|
(5.8
|
)
|
|
|
(5.8
|
)
|
|
|
(7.2
|
)
|
|
|
(7.4
|
)
|
|
Deferred revenue, primarily installation revenue(b)
|
|
|
|
|
29.3
|
|
|
|
23.3
|
|
|
|
|
6.0
|
|
|
|
26
|
%
|
|
|
16.1
|
|
|
|
7.6
|
|
|
|
2.4
|
|
|
|
3.2
|
|
|
|
3.8
|
|
|
Leasing commissions
|
|
|
|
|
(16.7
|
)
|
|
|
(17.3
|
)
|
|
|
|
0.6
|
|
|
|
(3
|
)%
|
|
|
(6.5
|
)
|
|
|
(3.3
|
)
|
|
|
(3.7
|
)
|
|
|
(3.2
|
)
|
|
|
(3.5
|
)
|
|
Recurring capital expenditures
|
|
|
|
|
(10.5
|
)
|
|
|
(4.4
|
)
|
|
|
|
(6.1
|
)
|
|
|
n/m
|
|
|
|
(2.1
|
)
|
|
|
(3.7
|
)
|
|
|
(2.3
|
)
|
|
|
(2.4
|
)
|
|
|
(1.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Straight line rent adjustments:
|
|
|
|
|
|
|
|
Represents the difference between revenue recognized on a straight
line basis under 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 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, Debt
Schedule and Interest Summary
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market Capitalization (as
of December 31, 2018)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in millions)
|
|
|
|
Shares or Equivalents Outstanding
|
|
|
|
Market Price as of December 31, 2018
|
|
|
|
Market Value Equivalents (in millions)
|
|
Common shares
|
|
|
|
108,329,314
|
|
|
|
|
$
|
52.88
|
|
|
|
|
$
|
5,728.5
|
|
Net Debt
|
|
|
|
|
|
|
|
|
|
|
|
2,612.0
|
|
Total Enterprise Value (TEV)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8,340.5
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
September 30,
|
|
(dollars in millions)
|
|
|
|
2018
|
|
|
|
2018
|
|
Long-term debt(a)
|
|
|
|
$
|
2,643.0
|
|
|
|
|
$
|
2,595.6
|
|
|
Capital lease obligations
|
|
|
|
33.4
|
|
|
|
|
36.9
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
(64.4
|
)
|
|
|
|
(61.0
|
)
|
|
Net Debt
|
|
|
|
$
|
2,612.0
|
|
|
|
|
$
|
2,571.5
|
|
|
(a)
|
|
Excludes adjustment for deferred financing costs and bond premiums.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt Schedule (as of
December 31, 2018)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt:
|
|
|
|
Amount
|
|
|
|
Interest Rate
|
|
|
|
Maturity Date
|
|
Revolving credit facility - EUR(a)
|
|
|
|
$
|
143.0
|
|
|
|
|
E + 145bps(b)
|
|
|
|
March 2023(c)
|
|
Revolving credit facility - USD
|
|
|
|
—
|
|
|
|
|
L + 145bps
|
|
|
|
March 2023(c)
|
|
Term loan
|
|
|
|
1,000.0
|
|
|
|
|
L + 140bps(d)
|
|
|
|
March 2023
|
|
Term loan
|
|
|
|
300.0
|
|
|
|
|
L + 170bps(e)
|
|
|
|
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(f)
|
|
|
|
$
|
2,643.0
|
|
|
|
|
4.38%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average term of debt:
|
|
|
|
5.5 years
|
|
|
|
|
|
(a)
|
|
Amount outstanding is USD equivalent of €125 million.
|
|
(b)
|
|
Interest rate as of December 31, 2018: 1.45%.
|
|
(c)
|
|
Assuming exercise of one-year extension option.
|
|
(d)
|
|
Interest rate as of December 31, 2018: 3.92%.
|
|
(e)
|
|
Interest rate as of December 31, 2018: 4.23%.
|
|
(f)
|
|
Excludes adjustment for deferred financing costs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Summary
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
December 31,
|
|
|
September 30,
|
|
|
December 31,
|
|
|
Growth %
|
|
(dollars in millions)
|
|
|
2018
|
|
|
2018
|
|
|
2017
|
|
|
Yr/Yr
|
|
Interest expense and fees
|
|
|
$
|
32.7
|
|
|
|
$
|
30.2
|
|
|
|
$
|
23.8
|
|
|
|
37
|
%
|
|
Amortization of deferred financing costs and bond premium
|
|
|
|
1.1
|
|
|
|
|
1.1
|
|
|
|
|
0.9
|
|
|
|
22
|
%
|
|
Capitalized interest
|
|
|
|
(8.5
|
)
|
|
|
|
(5.5
|
)
|
|
|
|
(4.6
|
)
|
|
|
85
|
%
|
|
Total interest expense
|
|
|
$
|
25.3
|
|
|
|
$
|
25.8
|
|
|
|
$
|
20.1
|
|
|
|
26
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Colocation Square Footage (CSF) and CSF Leased
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2018
|
|
|
|
As of September 30, 2018
|
|
|
|
As of December 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
|
|
|
|
881
|
|
|
|
96
|
%
|
|
|
|
780
|
|
|
|
94
|
%
|
|
|
|
640
|
|
|
|
79
|
%
|
|
Dallas
|
|
|
|
621
|
|
|
|
70
|
%
|
|
|
|
621
|
|
|
|
69
|
%
|
|
|
|
506
|
|
|
|
85
|
%
|
|
Phoenix
|
|
|
|
509
|
|
|
|
100
|
%
|
|
|
|
509
|
|
|
|
100
|
%
|
|
|
|
509
|
|
|
|
91
|
%
|
|
Cincinnati
|
|
|
|
402
|
|
|
|
92
|
%
|
|
|
|
402
|
|
|
|
93
|
%
|
|
|
|
404
|
|
|
|
91
|
%
|
|
Houston
|
|
|
|
308
|
|
|
|
73
|
%
|
|
|
|
308
|
|
|
|
74
|
%
|
|
|
|
308
|
|
|
|
74
|
%
|
|
San Antonio
|
|
|
|
300
|
|
|
|
100
|
%
|
|
|
|
300
|
|
|
|
100
|
%
|
|
|
|
273
|
|
|
|
88
|
%
|
|
New York Metro
|
|
|
|
218
|
|
|
|
86
|
%
|
|
|
|
218
|
|
|
|
83
|
%
|
|
|
|
218
|
|
|
|
82
|
%
|
|
Chicago
|
|
|
|
213
|
|
|
|
69
|
%
|
|
|
|
213
|
|
|
|
67
|
%
|
|
|
|
213
|
|
|
|
64
|
%
|
|
Austin
|
|
|
|
106
|
|
|
|
80
|
%
|
|
|
|
106
|
|
|
|
78
|
%
|
|
|
|
106
|
|
|
|
67
|
%
|
|
Raleigh-Durham
|
|
|
|
76
|
|
|
|
97
|
%
|
|
|
|
76
|
|
|
|
88
|
%
|
|
|
|
76
|
|
|
|
88
|
%
|
|
Total - Domestic
|
|
|
|
3,633
|
|
|
|
87
|
%
|
|
|
|
3,533
|
|
|
|
86
|
%
|
|
|
|
3,253
|
|
|
|
83
|
%
|
|
Frankfurt
|
|
|
|
98
|
|
|
|
99
|
%
|
|
|
|
62
|
|
|
|
98
|
%
|
|
|
|
—
|
|
|
|
—
|
%
|
|
London
|
|
|
|
84
|
|
|
|
99
|
%
|
|
|
|
77
|
|
|
|
99
|
%
|
|
|
|
10
|
|
|
|
94
|
%
|
|
Singapore
|
|
|
|
3
|
|
|
|
22
|
%
|
|
|
|
3
|
|
|
|
22
|
%
|
|
|
|
3
|
|
|
|
22
|
%
|
|
Total - International
|
|
|
|
185
|
|
|
|
98
|
%
|
|
|
|
142
|
|
|
|
97
|
%
|
|
|
|
13
|
|
|
|
76
|
%
|
|
Total - Portfolio
|
|
|
|
3,819
|
|
|
|
88
|
%
|
|
|
|
3,674
|
|
|
|
86
|
%
|
|
|
|
3,267
|
|
|
|
83
|
%
|
|
Stabilized Properties(c)
|
|
|
|
3,540
|
|
|
|
92
|
%
|
|
|
|
3,396
|
|
|
|
91
|
%
|
|
|
|
2,653
|
|
|
|
93
|
%
|
|
|
|
(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.
2019 Guidance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 Results Adjusted
|
|
|
|
|
|
Category
|
|
|
|
2018 Results
|
|
|
|
for ASC 842(1)
|
|
|
|
2019 Guidance
|
|
Total Revenue
|
|
|
|
$821 million
|
|
|
|
$821 million
|
|
|
|
$960 - 1,000 million
|
|
Lease and Other Revenues from Customers
|
|
|
|
$717 million
|
|
|
|
$717 million
|
|
|
|
$835 - 865 million
|
|
Metered Power Reimbursements
|
|
|
|
$104 million
|
|
|
|
$104 million
|
|
|
|
$125 - 135 million
|
|
Adjusted EBITDA
|
|
|
|
$452 million
|
|
|
|
$435 million
|
|
|
|
$500 - 525 million
|
|
Normalized FFO per diluted common share
|
|
|
|
$3.31
|
|
|
|
$3.22
|
|
|
|
$3.10 - 3.20
|
|
Capital Expenditures
|
|
|
|
$866 million
|
|
|
|
$866 million
|
|
|
|
$950 - 1,100 million
|
|
Development(2)
|
|
|
|
$855 million
|
|
|
|
$855 million
|
|
|
|
$940 - 1,085 million
|
|
Recurring
|
|
|
|
$11 million
|
|
|
|
$11 million
|
|
|
|
$10 - 15 million
|
|
|
|
|
|
(1)
|
|
ASC 842 refers to Accounting Standards Codification Topic 842 -
Leases, issued by the Financial Accounting Standards Board to
increase transparency and comparability among organizations by
recognizing lease assets and lease liabilities on the balance
sheet and disclosing key information about leasing transactions.
The Company is adopting ASC 842 effective January 1, 2019. The
adjusted 2018 results have not been prepared in accordance with
GAAP and represent the Company's estimates as if the standard had
been adopted as of January 1, 2018. Adjusted EBITDA for 2018
decreased by $17 million due to higher operating lease expense.
Normalized FFO per diluted common share decreased by $0.09 due to
higher operating lease expense, partially offset by lower interest
expense. The adjusted 2018 results are being shown solely for
comparative and investor usefulness purposes with respect to the
Company's 2019 guidance.
|
|
(2)
|
|
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 forward-looking guidance for GAAP
financial measures (other than Revenue and Capital Expenditures)
or 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, acquisition,
integration and other related expenses, legal claim 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 December 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)
|
|
|
|
MetroArea
|
|
|
|
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
|
|
|
|
$
|
75,701
|
|
|
|
305
|
|
|
|
88
|
%
|
|
|
|
89
|
%
|
|
|
|
82
|
|
|
|
44
|
%
|
|
|
|
111
|
|
|
|
498
|
|
|
|
—
|
|
|
|
44
|
|
Northern Virginia - Sterling V
|
|
|
|
Northern Virginia
|
|
|
|
|
42,039
|
|
|
|
383
|
|
|
|
83
|
%
|
|
|
|
92
|
%
|
|
|
|
11
|
|
|
|
100
|
%
|
|
|
|
138
|
|
|
|
532
|
|
|
|
64
|
|
|
|
57
|
|
Houston - Houston West I
|
|
|
|
Houston
|
|
|
|
|
41,911
|
|
|
|
112
|
|
|
|
97
|
%
|
|
|
|
97
|
%
|
|
|
|
11
|
|
|
|
100
|
%
|
|
|
|
37
|
|
|
|
161
|
|
|
|
3
|
|
|
|
28
|
|
Northern Virginia - Sterling II
|
|
|
|
Northern Virginia
|
|
|
|
|
35,853
|
|
|
|
159
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
9
|
|
|
|
100
|
%
|
|
|
|
55
|
|
|
|
223
|
|
|
|
—
|
|
|
|
30
|
|
Cincinnati - 7th Street***
|
|
|
|
Cincinnati
|
|
|
|
|
33,493
|
|
|
|
197
|
|
|
|
91
|
%
|
|
|
|
92
|
%
|
|
|
|
6
|
|
|
|
61
|
%
|
|
|
|
175
|
|
|
|
378
|
|
|
|
46
|
|
|
|
16
|
|
San Antonio III
|
|
|
|
San Antonio
|
|
|
|
|
30,781
|
|
|
|
132
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
9
|
|
|
|
100
|
%
|
|
|
|
43
|
|
|
|
184
|
|
|
|
—
|
|
|
|
24
|
|
Somerset I
|
|
|
|
New York Metro
|
|
|
|
|
29,786
|
|
|
|
97
|
|
|
|
85
|
%
|
|
|
|
92
|
%
|
|
|
|
27
|
|
|
|
89
|
%
|
|
|
|
89
|
|
|
|
213
|
|
|
|
203
|
|
|
|
13
|
|
Chicago - Aurora I
|
|
|
|
Chicago
|
|
|
|
|
27,797
|
|
|
|
113
|
|
|
|
98
|
%
|
|
|
|
98
|
%
|
|
|
|
34
|
|
|
|
100
|
%
|
|
|
|
223
|
|
|
|
371
|
|
|
|
27
|
|
|
|
71
|
|
Dallas - Lewisville*
|
|
|
|
Dallas
|
|
|
|
|
27,050
|
|
|
|
114
|
|
|
|
76
|
%
|
|
|
|
83
|
%
|
|
|
|
11
|
|
|
|
84
|
%
|
|
|
|
54
|
|
|
|
180
|
|
|
|
—
|
|
|
|
21
|
|
Totowa - Madison**
|
|
|
|
New York Metro
|
|
|
|
|
26,469
|
|
|
|
51
|
|
|
|
89
|
%
|
|
|
|
92
|
%
|
|
|
|
22
|
|
|
|
100
|
%
|
|
|
|
59
|
|
|
|
133
|
|
|
|
—
|
|
|
|
6
|
|
Cincinnati - North Cincinnati
|
|
|
|
Cincinnati
|
|
|
|
|
24,322
|
|
|
|
65
|
|
|
|
99
|
%
|
|
|
|
100
|
%
|
|
|
|
45
|
|
|
|
79
|
%
|
|
|
|
53
|
|
|
|
163
|
|
|
|
65
|
|
|
|
14
|
|
Wappingers Falls I**
|
|
|
|
New York Metro
|
|
|
|
|
23,705
|
|
|
|
37
|
|
|
|
92
|
%
|
|
|
|
92
|
%
|
|
|
|
20
|
|
|
|
99
|
%
|
|
|
|
15
|
|
|
|
72
|
|
|
|
—
|
|
|
|
3
|
|
Frankfurt I
|
|
|
|
Frankfurt
|
|
|
|
|
21,973
|
|
|
|
53
|
|
|
|
97
|
%
|
|
|
|
97
|
%
|
|
|
|
8
|
|
|
|
91
|
%
|
|
|
|
57
|
|
|
|
118
|
|
|
|
—
|
|
|
|
18
|
|
San Antonio I
|
|
|
|
San Antonio
|
|
|
|
|
21,586
|
|
|
|
44
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
6
|
|
|
|
83
|
%
|
|
|
|
46
|
|
|
|
96
|
|
|
|
11
|
|
|
|
12
|
|
Phoenix - Chandler VI
|
|
|
|
Phoenix
|
|
|
|
|
21,190
|
|
|
|
148
|
|
|
|
99
|
%
|
|
|
|
99
|
%
|
|
|
|
6
|
|
|
|
100
|
%
|
|
|
|
32
|
|
|
|
186
|
|
|
|
10
|
|
|
|
24
|
|
Houston - Houston West II
|
|
|
|
Houston
|
|
|
|
|
20,822
|
|
|
|
80
|
|
|
|
77
|
%
|
|
|
|
77
|
%
|
|
|
|
4
|
|
|
|
79
|
%
|
|
|
|
55
|
|
|
|
139
|
|
|
|
11
|
|
|
|
12
|
|
Phoenix - Chandler II
|
|
|
|
Phoenix
|
|
|
|
|
20,501
|
|
|
|
74
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
6
|
|
|
|
38
|
%
|
|
|
|
26
|
|
|
|
105
|
|
|
|
—
|
|
|
|
12
|
|
Northern Virginia - Sterling I
|
|
|
|
Northern Virginia
|
|
|
|
|
19,878
|
|
|
|
78
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
6
|
|
|
|
81
|
%
|
|
|
|
49
|
|
|
|
132
|
|
|
|
—
|
|
|
|
12
|
|
Phoenix - Chandler I
|
|
|
|
Phoenix
|
|
|
|
|
19,456
|
|
|
|
74
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
35
|
|
|
|
12
|
%
|
|
|
|
39
|
|
|
|
147
|
|
|
|
31
|
|
|
|
16
|
|
Phoenix - Chandler III
|
|
|
|
Phoenix
|
|
|
|
|
18,548
|
|
|
|
68
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
2
|
|
|
|
—
|
%
|
|
|
|
30
|
|
|
|
101
|
|
|
|
—
|
|
|
|
14
|
|
Raleigh-Durham I
|
|
|
|
Raleigh-Durham
|
|
|
|
|
18,522
|
|
|
|
76
|
|
|
|
92
|
%
|
|
|
|
97
|
%
|
|
|
|
13
|
|
|
|
100
|
%
|
|
|
|
82
|
|
|
|
171
|
|
|
|
246
|
|
|
|
12
|
|
Northern Virginia - Sterling III
|
|
|
|
Northern Virginia
|
|
|
|
|
18,172
|
|
|
|
79
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
7
|
|
|
|
100
|
%
|
|
|
|
34
|
|
|
|
120
|
|
|
|
—
|
|
|
|
15
|
|
Austin III
|
|
|
|
Austin
|
|
|
|
|
16,427
|
|
|
|
62
|
|
|
|
67
|
%
|
|
|
|
69
|
%
|
|
|
|
15
|
|
|
|
98
|
%
|
|
|
|
21
|
|
|
|
98
|
|
|
|
67
|
|
|
|
6
|
|
Houston - Galleria
|
|
|
|
Houston
|
|
|
|
|
16,021
|
|
|
|
63
|
|
|
|
59
|
%
|
|
|
|
59
|
%
|
|
|
|
23
|
|
|
|
49
|
%
|
|
|
|
25
|
|
|
|
112
|
|
|
|
—
|
|
|
|
14
|
|
Austin II
|
|
|
|
Austin
|
|
|
|
|
14,860
|
|
|
|
44
|
|
|
|
95
|
%
|
|
|
|
95
|
%
|
|
|
|
2
|
|
|
|
100
|
%
|
|
|
|
22
|
|
|
|
68
|
|
|
|
—
|
|
|
|
5
|
|
San Antonio II
|
|
|
|
San Antonio
|
|
|
|
|
14,106
|
|
|
|
64
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
11
|
|
|
|
100
|
%
|
|
|
|
41
|
|
|
|
117
|
|
|
|
—
|
|
|
|
12
|
|
Florence
|
|
|
|
Cincinnati
|
|
|
|
|
13,518
|
|
|
|
53
|
|
|
|
99
|
%
|
|
|
|
99
|
%
|
|
|
|
47
|
|
|
|
87
|
%
|
|
|
|
40
|
|
|
|
140
|
|
|
|
—
|
|
|
|
9
|
|
Northern Virginia - Sterling VI
|
|
|
|
Northern Virginia
|
|
|
|
|
12,384
|
|
|
|
101
|
|
|
|
68
|
%
|
|
|
|
100
|
%
|
|
|
|
—
|
|
|
|
—
|
%
|
|
|
|
—
|
|
|
|
101
|
|
|
|
—
|
|
|
|
21
|
|
Phoenix - Chandler IV
|
|
|
|
Phoenix
|
|
|
|
|
11,285
|
|
|
|
73
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
3
|
|
|
|
100
|
%
|
|
|
|
27
|
|
|
|
103
|
|
|
|
—
|
|
|
|
12
|
|
Phoenix - Chandler V
|
|
|
|
Phoenix
|
|
|
|
|
11,162
|
|
|
|
72
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
1
|
|
|
|
95
|
%
|
|
|
|
16
|
|
|
|
89
|
|
|
|
94
|
|
|
|
12
|
|
Cincinnati - Hamilton*
|
|
|
|
Cincinnati
|
|
|
|
|
10,803
|
|
|
|
47
|
|
|
|
74
|
%
|
|
|
|
74
|
%
|
|
|
|
1
|
|
|
|
100
|
%
|
|
|
|
35
|
|
|
|
83
|
|
|
|
—
|
|
|
|
10
|
|
Northern Virginia - Sterling IV
|
|
|
|
Northern Virginia
|
|
|
|
|
10,349
|
|
|
|
81
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
7
|
|
|
|
100
|
%
|
|
|
|
34
|
|
|
|
122
|
|
|
|
—
|
|
|
|
15
|
|
San Antonio IV
|
|
|
|
San Antonio
|
|
|
|
|
10,271
|
|
|
|
60
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
12
|
|
|
|
100
|
%
|
|
|
|
27
|
|
|
|
99
|
|
|
|
—
|
|
|
|
12
|
|
London I**
|
|
|
|
London
|
|
|
|
|
8,527
|
|
|
|
25
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
12
|
|
|
|
56
|
%
|
|
|
|
58
|
|
|
|
95
|
|
|
|
9
|
|
|
|
10
|
|
London II**
|
|
|
|
London
|
|
|
|
|
8,304
|
|
|
|
49
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
10
|
|
|
|
100
|
%
|
|
|
|
93
|
|
|
|
151
|
|
|
|
4
|
|
|
|
15
|
|
London - Great Bridgewater**
|
|
|
|
London
|
|
|
|
|
6,274
|
|
|
|
10
|
|
|
|
94
|
%
|
|
|
|
94
|
%
|
|
|
|
—
|
|
|
|
—
|
%
|
|
|
|
1
|
|
|
|
11
|
|
|
|
—
|
|
|
|
1
|
|
Houston - Houston West III
|
|
|
|
Houston
|
|
|
|
|
5,569
|
|
|
|
53
|
|
|
|
34
|
%
|
|
|
|
34
|
%
|
|
|
|
10
|
|
|
|
100
|
%
|
|
|
|
32
|
|
|
|
95
|
|
|
|
209
|
|
|
|
6
|
|
Cincinnati - Mason
|
|
|
|
Cincinnati
|
|
|
|
|
5,374
|
|
|
|
34
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
26
|
|
|
|
98
|
%
|
|
|
|
17
|
|
|
|
78
|
|
|
|
—
|
|
|
|
4
|
|
Stamford - Riverbend**
|
|
|
|
New York Metro
|
|
|
|
|
5,340
|
|
|
|
20
|
|
|
|
23
|
%
|
|
|
|
23
|
%
|
|
|
|
—
|
|
|
|
—
|
%
|
|
|
|
8
|
|
|
|
28
|
|
|
|
—
|
|
|
|
2
|
|
Norwalk I**
|
|
|
|
New York Metro
|
|
|
|
|
4,378
|
|
|
|
13
|
|
|
|
99
|
%
|
|
|
|
99
|
%
|
|
|
|
4
|
|
|
|
61
|
%
|
|
|
|
41
|
|
|
|
58
|
|
|
|
87
|
|
|
|
2
|
|
Chicago - Lombard
|
|
|
|
Chicago
|
|
|
|
|
2,427
|
|
|
|
14
|
|
|
|
62
|
%
|
|
|
|
62
|
%
|
|
|
|
4
|
|
|
|
100
|
%
|
|
|
|
12
|
|
|
|
30
|
|
|
|
29
|
|
|
|
3
|
|
Stamford - Omega**
|
|
|
|
New York Metro
|
|
|
|
|
1,242
|
|
|
|
—
|
|
|
|
—
|
%
|
|
|
|
—
|
%
|
|
|
|
19
|
|
|
|
84
|
%
|
|
|
|
4
|
|
|
|
22
|
|
|
|
—
|
|
|
|
—
|
|
Frankfurt II
|
|
|
|
Frankfurt
|
|
|
|
|
1,185
|
|
|
|
45
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
7
|
|
|
|
100
|
%
|
|
|
|
72
|
|
|
|
123
|
|
|
|
10
|
|
|
|
25
|
|
Cincinnati - Blue Ash*
|
|
|
|
Cincinnati
|
|
|
|
|
657
|
|
|
|
6
|
|
|
|
36
|
%
|
|
|
|
36
|
%
|
|
|
|
7
|
|
|
|
100
|
%
|
|
|
|
2
|
|
|
|
15
|
|
|
|
—
|
|
|
|
1
|
|
South Bend - Crescent*
|
|
|
|
Chicago
|
|
|
|
|
567
|
|
|
|
3
|
|
|
|
41
|
%
|
|
|
|
41
|
%
|
|
|
|
—
|
|
|
|
—
|
%
|
|
|
|
5
|
|
|
|
9
|
|
|
|
11
|
|
|
|
1
|
|
Totowa - Commerce**
|
|
|
|
New York Metro
|
|
|
|
|
567
|
|
|
|
—
|
|
|
|
—
|
%
|
|
|
|
—
|
%
|
|
|
|
20
|
|
|
|
38
|
%
|
|
|
|
6
|
|
|
|
26
|
|
|
|
—
|
|
|
|
—
|
|
Singapore - Inter Business Park**
|
|
|
|
Singapore
|
|
|
|
|
379
|
|
|
|
3
|
|
|
|
22
|
%
|
|
|
|
22
|
%
|
|
|
|
—
|
|
|
|
—
|
%
|
|
|
|
—
|
|
|
|
3
|
|
|
|
—
|
|
|
|
1
|
|
South Bend - Monroe
|
|
|
|
Chicago
|
|
|
|
|
123
|
|
|
|
6
|
|
|
|
23
|
%
|
|
|
|
23
|
%
|
|
|
|
—
|
|
|
|
—
|
%
|
|
|
|
6
|
|
|
|
13
|
|
|
|
4
|
|
|
|
1
|
|
Stabilized Properties - Total
|
|
|
|
|
|
|
|
$
|
811,653
|
|
|
|
3,540
|
|
|
|
90
|
%
|
|
|
|
92
|
%
|
|
|
|
621
|
|
|
|
77
|
%
|
|
|
|
2,148
|
|
|
|
6,309
|
|
|
|
1,241
|
|
|
|
669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.Data Center PortfolioAs of
December 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)
|
|
|
|
|
MetroArea
|
|
|
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
|
|
|
|
|
|
$
|
811,653
|
|
|
3,540
|
|
|
90
|
%
|
|
|
92
|
%
|
|
|
621
|
|
|
77
|
%
|
|
|
2,148
|
|
|
6,309
|
|
|
1,241
|
|
|
669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-Stabilized Properties(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dallas - Carrollton (DH #6)
|
|
|
Dallas
|
|
|
|
7,346
|
|
|
75
|
|
|
76
|
%
|
|
|
76
|
%
|
|
|
—
|
|
|
—
|
%
|
|
|
21
|
|
|
96
|
|
|
—
|
|
|
6
|
|
Chicago - Aurora II (DH #1)
|
|
|
Chicago
|
|
|
|
2,107
|
|
|
77
|
|
|
29
|
%
|
|
|
34
|
%
|
|
|
45
|
|
|
—
|
%
|
|
|
14
|
|
|
136
|
|
|
272
|
|
|
16
|
|
Dallas - Carrollton (DH #7)
|
|
|
Dallas
|
|
|
|
868
|
|
|
48
|
|
|
21
|
%
|
|
|
21
|
%
|
|
|
—
|
|
|
—
|
%
|
|
|
—
|
|
|
48
|
|
|
—
|
|
|
6
|
|
Dallas - Allen (DH #1)
|
|
|
Dallas
|
|
|
|
—
|
|
|
79
|
|
|
—
|
%
|
|
|
—
|
%
|
|
|
—
|
|
|
—
|
%
|
|
|
58
|
|
|
137
|
|
|
158
|
|
|
6
|
|
All Properties - Total
|
|
|
|
|
|
$
|
821,975
|
|
|
3,819
|
|
|
85
|
%
|
|
|
88
|
%
|
|
|
666
|
|
|
72
|
%
|
|
|
2,241
|
|
|
6,726
|
|
|
1,670
|
|
|
703
|
|
|
|
|
|
*
|
|
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 December 31, 2018, multiplied by 12. For the month of
December 2018, customer reimbursements were $112.0 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 January 1, 2017 through December
31, 2018, customer reimbursements under leases with separately
metered power constituted between 10.2% and 15.1% of annualized
rent. After giving effect to abatements, free rent and other
straight-line adjustments, our annualized effective rent as of
December 31, 2018 was $829.6 million. Our annualized effective rent
was greater than our annualized rent as of December 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 December 31, 2018 divided by total CSF.
Leases signed but that have not commenced billing as of December 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 December 31, 2018
divided by total Office & Other space. Leases signed but not
commenced as of December 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 December 31, 2018
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NRSF Under Development(a)
|
|
|
|
|
|
Under Development Costs(b)
|
|
Facilities
|
|
|
Metropolitan
Area
|
|
|
Estimated Completion Date
|
|
|
Colocation Space
(CSF) (000)
|
|
|
Office & Other (000)
|
|
|
Supporting Infrastructure (000)
|
|
|
Powered Shell(c)
(000)
|
|
|
Total (000)
|
|
|
Critical Load MW Capacity(d)
|
|
|
Actual to
Date(e)
|
|
|
Estimated
Costs to
Completion(f)
|
|
|
Total
|
|
Dallas - Allen
|
|
|
Dallas
|
|
|
1Q'19
|
|
|
—
|
|
|
25
|
|
|
21
|
|
|
—
|
|
|
46
|
|
|
—
|
|
|
$
|
—
|
|
|
|
7-9
|
|
|
|
7-9
|
|
Northern Virginia - Sterling V
|
|
|
Northern Virginia
|
|
|
1Q'19
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|
6.0
|
|
|
|
—
|
|
|
|
25-28
|
|
|
|
25-28
|
|
Phoenix - Chandler VII
|
|
|
Phoenix
|
|
|
1Q'19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
269
|
|
|
269
|
|
|
—
|
|
|
|
15
|
|
|
|
44-50
|
|
|
|
59-65
|
|
Raleigh-Durham I
|
|
|
Raleigh-Durham
|
|
|
1Q'19
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
3.0
|
|
|
|
1
|
|
|
|
6-8
|
|
|
|
7-9
|
|
Dallas - Carrollton
|
|
|
Dallas
|
|
|
2Q'19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.0
|
|
|
|
2
|
|
|
|
17-18
|
|
|
|
19-20
|
|
Northern Virginia - Sterling VI
|
|
|
Northern Virginia
|
|
|
2Q'19
|
|
|
171
|
|
|
35
|
|
|
52
|
|
|
—
|
|
|
258
|
|
|
36.0
|
|
|
|
43
|
|
|
|
95-119
|
|
|
|
138-162
|
|
Somerset II
|
|
|
New York Metro
|
|
|
2Q'19
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
|
—
|
|
|
|
4-6
|
|
|
|
4-6
|
|
London I
|
|
|
London
|
|
|
2Q'19
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
5.0
|
|
|
|
—
|
|
|
|
12-14
|
|
|
|
12-14
|
|
Northern Virginia - Sterling VII
|
|
|
Northern Virginia
|
|
|
3Q'19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
93
|
|
|
93
|
|
|
—
|
|
|
|
—
|
|
|
|
33-37
|
|
|
|
33-37
|
|
Northern Virginia - Sterling VIII
|
|
|
Northern Virginia
|
|
|
3Q'19
|
|
|
122
|
|
|
4
|
|
|
25
|
|
|
—
|
|
|
151
|
|
|
30.0
|
|
|
|
24
|
|
|
|
142-159
|
|
|
|
166-183
|
|
Austin III
|
|
|
Austin
|
|
|
3Q'19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.0
|
|
|
|
—
|
|
|
|
17-19
|
|
|
|
17-19
|
|
London II
|
|
|
London
|
|
|
3Q'19
|
|
|
32
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|
13.0
|
|
|
|
—
|
|
|
|
30-34
|
|
|
|
30-34
|
|
Frankfurt II
|
|
|
Frankfurt
|
|
|
3Q'19
|
|
|
45
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
48
|
|
|
18.0
|
|
|
|
—
|
|
|
|
50-60
|
|
|
|
50-60
|
|
Amsterdam I
|
|
|
Amsterdam
|
|
|
4Q'19
|
|
|
39
|
|
|
28
|
|
|
40
|
|
|
194
|
|
|
301
|
|
|
6.0
|
|
|
|
1
|
|
|
|
65-76
|
|
|
|
66-77
|
|
Frankfurt III
|
|
|
Frankfurt
|
|
|
2Q'20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
258
|
|
|
258
|
|
|
—
|
|
|
|
—
|
|
|
|
66-77
|
|
|
|
66-77
|
|
Total
|
|
|
|
|
|
|
|
|
439
|
|
|
96
|
|
|
144
|
|
|
814
|
|
|
1,492
|
|
|
126.0
|
|
|
$
|
86
|
|
|
$
|
613-714
|
|
|
$
|
699-800
|
|
|
|
|
|
(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.
May not sum to total due to rounding.
|
|
(b)
|
|
London development costs are GBP-denominated and shown as
USD-equivalent using exchange rate of 1.27. Frankfurt and Amsterdam
development costs are EUR-denominated and shown as USD-equivalent
using exchange rate of 1.14.
|
|
(c)
|
|
Represents NRSF under construction that, upon completion, will be
powered shell available for future development into operating NRSF.
|
|
(d)
|
|
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.
|
|
(e)
|
|
Actual to date is the cash investment as of December 31, 2018. There
may be accruals above this amount for work completed, for which cash
has not yet been paid.
|
|
(f)
|
|
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.
|
|
|
|
Capital Expenditures - Investment in Real
Estate
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
Twelve months ended
|
|
|
|
|
|
|
|
March 31,
|
|
|
June 30,
|
|
|
September 30,
|
|
|
December 31,
|
|
|
December 31,
|
|
(dollars in millions)
|
|
|
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
Capital expenditures - investment in real estate
|
|
|
|
|
|
$142.8
|
|
|
$175.2
|
|
|
$304.8
|
|
|
$232.4
|
|
|
$855.2
|
|
|
|
|
|
|
CyrusOne Inc.
Land Available for Future Development (Acres)
As of December 31, 2018
(Unaudited)
|
|
|
|
|
|
|
|
|
|
As of
|
|
Market
|
|
|
December 31, 2018
|
|
Amsterdam
|
|
|
8
|
|
|
Atlanta
|
|
|
44
|
|
|
Austin
|
|
|
22
|
|
|
Chicago
|
|
|
23
|
|
|
Cincinnati
|
|
|
98
|
|
|
Dallas
|
|
|
57
|
|
|
Houston
|
|
|
20
|
|
|
Northern Virginia
|
|
|
40
|
|
|
Phoenix
|
|
|
96
|
|
|
Quincy, Washington
|
|
|
48
|
|
|
Santa Clara
|
|
|
15
|
|
|
Total Available(a)
|
|
|
470
|
|
|
Book Value of Total Available
|
|
|
$
|
176.4
|
million
|
|
(a) Does not sum to total due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Leasing Statistics - Lease Signings
As of December 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)
|
|
4Q'18
|
|
|
482
|
|
|
|
41,000
|
|
|
|
6,768
|
|
|
|
$1,678
|
|
|
|
73
|
|
Prior 4Q Avg.
|
|
|
460
|
|
|
|
182,750
|
|
|
|
26,250
|
|
|
|
$3,126
|
|
|
|
85
|
|
3Q'18
|
|
|
500
|
|
|
|
114,000
|
|
|
|
15,118
|
|
|
|
$2,218
|
|
|
|
60
|
|
2Q'18
|
|
|
506
|
|
|
|
305,000
|
|
|
|
51,919
|
|
|
|
$5,453
|
|
|
|
143
|
|
1Q'18
|
|
|
439
|
|
|
|
226,000
|
|
|
|
29,364
|
|
|
|
$3,370
|
|
|
|
77
|
|
4Q'17
|
|
|
395
|
|
|
|
86,000
|
|
|
|
8,600
|
|
|
|
$1,463
|
|
|
|
61
|
|
|
|
|
|
(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 $0.3 million in 2Q'18 and
3Q'18, $0.2 million in 4Q'17 and 1Q'18, and $0.1 million in 4Q'18.
|
|
(e)
|
|
Calculated on a CSF-weighted basis.
|
|
|
|
CyrusOne Inc.
New MRR Signed - Existing vs. New Customers
As of December 31, 2018
(Dollars in thousands)
(Unaudited)
|
|
New MRR(a) Signed ($000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q'17
|
|
|
2Q'17
|
|
|
3Q'17
|
|
|
4Q'17
|
|
|
1Q'18
|
|
|
2Q'18
|
|
|
3Q'18
|
|
|
4Q'18
|
|
Existing Customers
|
|
|
$
|
2,247
|
|
|
|
$
|
2,322
|
|
|
|
$
|
1,418
|
|
|
|
$
|
1,063
|
|
|
|
$
|
3,149
|
|
|
|
$
|
4,429
|
|
|
|
$
|
2,072
|
|
|
|
$
|
1,226
|
|
|
New Customers
|
|
|
$
|
385
|
|
|
|
$
|
145
|
|
|
|
$
|
810
|
|
|
|
$
|
400
|
|
|
|
$
|
221
|
|
|
|
$
|
1,024
|
|
|
|
$
|
146
|
|
|
|
$
|
452
|
|
|
Total
|
|
|
$
|
2,632
|
|
|
|
$
|
2,467
|
|
|
|
$
|
2,228
|
|
|
|
$
|
1,463
|
|
|
|
$
|
3,370
|
|
|
|
$
|
5,453
|
|
|
|
$
|
2,218
|
|
|
|
$
|
1,678
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% from Existing Customers
|
|
|
|
85
|
%
|
|
|
|
94
|
%
|
|
|
|
64
|
%
|
|
|
|
73
|
%
|
|
|
|
93
|
%
|
|
|
|
81
|
%
|
|
|
|
93
|
%
|
|
|
|
73
|
%
|
|
|
|
|
|
(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 $0.3
million in 2Q'18 and 3Q'18, $0.2 million in 2Q'17-1Q'18 and $0.1
million in 1Q'17 and 4Q'18.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CyrusOne Inc.
Customer Sector Diversification(a)
As of December 31, 2018
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal Customer Industry
|
|
|
Number ofLocations
|
|
|
Annualized Rent(b) (000)
|
|
Percentage of Portfolio Annualized Rent(c)
|
|
Weighted Average Remaining Lease
Term in Months(d)
|
|
1
|
|
Information Technology
|
|
|
11
|
|
|
$
|
156,064
|
|
|
19.0
|
%
|
|
95.8
|
|
2
|
|
Information Technology
|
|
|
5
|
|
|
|
52,716
|
|
|
6.4
|
%
|
|
67.6
|
|
3
|
|
Information Technology
|
|
|
10
|
|
|
|
44,325
|
|
|
5.4
|
%
|
|
39.4
|
|
4
|
|
Information Technology
|
|
|
7
|
|
|
|
29,937
|
|
|
3.6
|
%
|
|
32.8
|
|
5
|
|
Financial Services
|
|
|
1
|
|
|
|
19,097
|
|
|
2.3
|
%
|
|
147.0
|
|
6
|
|
Research and Consulting Services
|
|
|
3
|
|
|
|
15,791
|
|
|
1.9
|
%
|
|
25.1
|
|
7
|
|
Information Technology
|
|
|
4
|
|
|
|
15,585
|
|
|
1.9
|
%
|
|
44.0
|
|
8
|
|
Healthcare
|
|
|
2
|
|
|
|
15,099
|
|
|
1.8
|
%
|
|
108.0
|
|
9
|
|
Telecommunication Services
|
|
|
2
|
|
|
|
13,513
|
|
|
1.6
|
%
|
|
31.0
|
|
10
|
|
Energy
|
|
|
1
|
|
|
|
12,610
|
|
|
1.5
|
%
|
|
19.7
|
|
11
|
|
Information Technology
|
|
|
6
|
|
|
|
12,004
|
|
|
1.5
|
%
|
|
23.0
|
|
12
|
|
Industrials
|
|
|
5
|
|
|
|
11,400
|
|
|
1.4
|
%
|
|
9.5
|
|
13
|
|
Telecommunication Services
|
|
|
7
|
|
|
|
9,950
|
|
|
1.2
|
%
|
|
22.1
|
|
14
|
|
Financial Services
|
|
|
2
|
|
|
|
9,506
|
|
|
1.2
|
%
|
|
56.6
|
|
15
|
|
Consumer Staples
|
|
|
3
|
|
|
|
9,162
|
|
|
1.1
|
%
|
|
25.7
|
|
16
|
|
Information Technology
|
|
|
2
|
|
|
|
7,994
|
|
|
1.0
|
%
|
|
66.2
|
|
17
|
|
Telecommunication Services
|
|
|
1
|
|
|
|
7,823
|
|
|
1.0
|
%
|
|
106.6
|
|
18
|
|
Information Technology
|
|
|
3
|
|
|
|
7,819
|
|
|
1.0
|
%
|
|
109.8
|
|
19
|
|
Information Technology
|
|
|
2
|
|
|
|
7,187
|
|
|
0.9
|
%
|
|
11.3
|
|
20
|
|
Financial Services
|
|
|
1
|
|
|
|
6,600
|
|
|
0.8
|
%
|
|
17.0
|
|
|
|
|
|
|
|
|
|
$
|
464,182
|
|
|
56.5
|
%
|
|
67.2
|
|
|
|
(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 December 31, 2018, multiplied by 12. For the month of
December 2018, customer reimbursements were $112.0 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 January 1, 2017 through December
31, 2018, customer reimbursements under leases with separately
metered power constituted between 10.2% and 15.1% of annualized
rent. After giving effect to abatements, free rent and other
straight-line adjustments, our annualized effective rent as of
December 31, 2018 was $829.6 million. Our annualized effective rent
was greater than our annualized rent as of December 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 December 31, 2018, which was
approximately $822.0 million.
|
|
(d)
|
|
Weighted average based on customer's percentage of total annualized
rent expiring and is as of December 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 December 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
|
|
|
672
|
|
|
68
|
%
|
|
|
127
|
|
|
2
|
%
|
|
|
$
|
71,531
|
|
|
|
9
|
%
|
|
1,000-2,499
|
|
|
119
|
|
|
12
|
%
|
|
|
187
|
|
|
4
|
%
|
|
|
|
43,709
|
|
|
|
5
|
%
|
|
2,500-4,999
|
|
|
74
|
|
|
7
|
%
|
|
|
264
|
|
|
5
|
%
|
|
|
|
44,912
|
|
|
|
6
|
%
|
|
5,000-9,999
|
|
|
45
|
|
|
5
|
%
|
|
|
319
|
|
|
6
|
%
|
|
|
|
52,946
|
|
|
|
6
|
%
|
|
10,000+
|
|
|
82
|
|
|
8
|
%
|
|
|
4,466
|
|
|
83
|
%
|
|
|
|
608,877
|
|
|
|
74
|
%
|
|
Total
|
|
|
992
|
|
|
100
|
%
|
|
|
5,363
|
|
|
100
|
%
|
|
|
$
|
821,975
|
|
|
|
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 December 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 December 31, 2018, multiplied by 12. For the month of
December 2018, customer reimbursements were $112.0 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 January 1, 2017 through December
31, 2018, customer reimbursements under leases with separately
metered power constituted between 10.2% and 15.1% of annualized
rent. After giving effect to abatements, free rent and other
straight-line adjustments, our annualized effective rent as of
December 31, 2018 was $829.6 million. Our annualized effective rent
was greater than our annualized rent as of December 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 December 31, 2018
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year(a)
|
|
|
Number of Leases Expiring(b)
|
|
|
Total OperatingNRSF Expiring (000)
|
|
|
Percentage ofTotal NRSF
|
|
|
Annualized Rent(c) (000)
|
|
|
Percentage ofAnnualized Rent
|
|
|
Annualized Rent at Expiration(d)(000)
|
|
|
Percentage ofAnnualized Rent at
Expiration
|
|
Available
|
|
|
|
|
|
1,363
|
|
|
20
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Month-to-Month
|
|
|
759
|
|
|
100
|
|
|
1
|
%
|
|
|
$
|
32,002
|
|
|
4
|
%
|
|
|
$
|
34,396
|
|
|
4
|
%
|
|
2019
|
|
|
2,250
|
|
|
574
|
|
|
9
|
%
|
|
|
|
107,469
|
|
|
13
|
%
|
|
|
|
108,352
|
|
|
12
|
%
|
|
2020
|
|
|
1,686
|
|
|
594
|
|
|
9
|
%
|
|
|
|
104,107
|
|
|
13
|
%
|
|
|
|
106,016
|
|
|
11
|
%
|
|
2021
|
|
|
1,851
|
|
|
722
|
|
|
11
|
%
|
|
|
|
127,330
|
|
|
15
|
%
|
|
|
|
136,913
|
|
|
15
|
%
|
|
2022
|
|
|
337
|
|
|
539
|
|
|
8
|
%
|
|
|
|
77,359
|
|
|
9
|
%
|
|
|
|
83,552
|
|
|
9
|
%
|
|
2023
|
|
|
266
|
|
|
720
|
|
|
11
|
%
|
|
|
|
86,821
|
|
|
11
|
%
|
|
|
|
119,285
|
|
|
13
|
%
|
|
2024
|
|
|
60
|
|
|
266
|
|
|
4
|
%
|
|
|
|
39,767
|
|
|
5
|
%
|
|
|
|
48,527
|
|
|
5
|
%
|
|
2025
|
|
|
46
|
|
|
186
|
|
|
3
|
%
|
|
|
|
29,672
|
|
|
4
|
%
|
|
|
|
34,024
|
|
|
4
|
%
|
|
2026
|
|
|
31
|
|
|
590
|
|
|
9
|
%
|
|
|
|
86,809
|
|
|
10
|
%
|
|
|
|
92,627
|
|
|
10
|
%
|
|
2027
|
|
|
19
|
|
|
438
|
|
|
6
|
%
|
|
|
|
66,807
|
|
|
8
|
%
|
|
|
|
86,233
|
|
|
9
|
%
|
|
2028
|
|
|
16
|
|
|
265
|
|
|
4
|
%
|
|
|
|
29,576
|
|
|
4
|
%
|
|
|
|
34,941
|
|
|
4
|
%
|
|
2029 - Thereafter
|
|
|
13
|
|
|
369
|
|
|
5
|
%
|
|
|
|
34,256
|
|
|
4
|
%
|
|
|
|
41,324
|
|
|
4
|
%
|
|
Total
|
|
|
7,334
|
|
|
6,726
|
|
|
100
|
%
|
|
|
$
|
821,975
|
|
|
100
|
%
|
|
|
$
|
926,190
|
|
|
100
|
%
|
|
|
|
(a)
|
|
Leases that were auto-renewed prior to December 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 December 31, 2018, multiplied by 12. For the month of
December 2018, customer reimbursements were $112.0 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 January 1, 2017 through December
31, 2018, customer reimbursements under leases with separately
metered power constituted between 10.2% and 15.1% of annualized
rent. After giving effect to abatements, free rent and other
straight-line adjustments, our annualized effective rent as of
December 31, 2018 was $829.6 million. Our annualized effective rent
was greater than our annualized rent as of December 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 December 31, 2018,
multiplied by 12.
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20190220005898/en/
