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Share Name | Share Symbol | Market | Type |
---|---|---|---|
CyrusOne Inc | NASDAQ:CONE | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 90.36 | 99.55 | 90.30 | 0 | 01:00:00 |
Signed $41.8 Million in Annualized GAAP Revenue and 21 Megawatts in 2Q’21
CyrusOne Inc. (NASDAQ: CONE), a premier global data center REIT, today announced second quarter 2021 earnings.
Highlights
Category
2Q’21
vs. 2Q’20
Revenue
$284.6 million
11%
Net income
$7.4 million
(84)%
Adjusted EBITDA
$141.9 million
4%
Normalized FFO
$123.1 million
4%
Net income per diluted common share
$0.06
(85)%
Normalized FFO per diluted common share
$1.00
(3)%
Second Quarter 2021 Financial Results
Revenue was $284.6 million for the second quarter, compared to $256.4 million for the same period in 2020, an increase of 11%. The increase in revenue was driven primarily by a 9% increase in occupied CSF and higher metered power reimbursements. Revenue included $2.1 million of equipment sales and $0.4 in lease termination fees, compared to $6.9 million of equipment sales and $3.0 million in lease termination fees in the second quarter of 2020.
Net income was $7.4 million for the second quarter, compared to net income of $45.0 million in the same period in 2020, a decrease of (84)%. Net income for the second quarter included a $1.4 million gain associated with a change in fair value on the undesignated portion of the Company’s net investment hedge compared to a $(13.9) million loss in the second quarter of 2020. Additionally, in the second quarter of 2020, the Company had a $50.4 million gain on the Company’s equity investment in GDS Holdings Limited. Net income per diluted common share1 was $0.06 in the second quarter of 2021, compared to net income per diluted common share of $0.39 in the same period in 2020.
Net operating income (“NOI”)2 was $162.8 million for the second quarter, compared to $157.4 million in the same period in 2020, an increase of 3%. Adjusted EBITDA3 was $141.9 million for the second quarter, compared to $136.8 million in the same period in 2020, an increase of 4%.
Normalized Funds From Operations (“Normalized FFO”)4 was $123.1 million for the second quarter, compared to $118.9 million in the same period in 2020, an increase of 4%. Normalized FFO per diluted common share was $1.00 in the first quarter of 2021, compared to $1.03 in the same period in 2020, a decrease of (3)%.
Leasing Activity
CyrusOne leased approximately 21 MW of power and 345,000 CSF in the second quarter, representing approximately $3.5 million in monthly recurring rent, inclusive of the monthly impact of installation charges. The leasing for the quarter represents approximately $41.8 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 99 months (8.3 years), and the weighted average remaining lease term of CyrusOne’s portfolio is 51 months (taking into consideration the impact of the backlog). Recurring rent churn percentage6 for the second quarter was 0.8%, compared to 1.1% for the same period in 2020.
Portfolio Development and Percentage CSF Leased
In the second quarter, the Company completed construction on 146,000 CSF and 45 MW of power capacity across Dublin, London, Northern Virginia, and San Antonio. Percentage CSF leased7 as of the end of the second quarter was 86% for stabilized properties8 and 83% overall. In addition, the Company has development projects underway in Frankfurt, London, Paris, Phoenix, Northern Virginia, the New York Metro area, and Cincinnati that are expected to add approximately 280,000 CSF and 64 MW of power capacity plus 303,000 square feet of powered shell.
Balance Sheet and Liquidity
As of June 30, 2021, the Company had gross asset value9 totaling approximately $9.2 billion, an increase of approximately 15% over gross asset value as of June 30, 2020. CyrusOne had $3.59 billion of long-term debt10, $370 million of cash and cash equivalents, and approximately $1.39 billion available under its unsecured revolving credit facility as of June 30, 2021. Net debt10 was $3.38 billion as of June 30, 2021, representing approximately 28% of the Company's total enterprise value as of June 30, 2021 of $12.3 billion. This represented approximately 5.0x Adjusted EBITDA for the last quarter annualized (after further adjusting net debt to reflect the pro forma impact of settlement of the forward sale agreements). Available liquidity11 was $2.28 billion as of June 30, 2021.
During the second quarter of 2021, the Company executed its inaugural green senior notes offering, issuing €500 million of 1.125% senior notes due 2028, with the net proceeds used to repay Euro-denominated borrowings under the Company’s unsecured revolving credit facility and for general corporate purposes. The Company intends to also allocate an amount equal to the net proceeds from the Notes to finance or refinance a portfolio of existing or future green building, renewable energy, energy efficiency, sustainable water and wastewater management, pollution prevention and control and clean transportation projects or assets. The transaction smooths and extends the Company’s debt maturity schedule and increases its percentage of fixed-rate debt.
Also during the second quarter of 2021, the Company entered into forward sale agreements through its ATM equity program with respect to approximately 3.0 million shares of common stock, which will result in estimated net proceeds of approximately $232 million upon settlement by June 2022. Combined with the forward sale agreements entered into in the third and fourth quarters of 2020, which will result in estimated net proceeds of approximately $287 million upon settlement by November 2021, the Company has approximately $519 million in available forward equity (no portion of the forward sale agreements has been settled as of July 28, 2021). Also during the second quarter of 2021, the Company settled a forward sale agreement entered into in 2020, resulting in net proceeds of approximately $95 million, which were used to repay a portion of amounts outstanding on the Company’s unsecured revolving credit facility and for general corporate purposes.
Additionally, the Company entered into sales agreements pursuant to which it may issue and sell from time to time shares of its common stock having an aggregate sales price of up to $750 million through its ATM equity program. This new ATM equity program replaced the prior ATM equity program. As of June 30, 2021, there was approximately $513 million in remaining availability under the new ATM equity program.
Dividend
On April 28, 2021, the Company announced a dividend of $0.51 per share of common stock for the second quarter of 2021. The dividend was paid on July 9, 2021, to stockholders of record at the close of business on June 25, 2021.
Additionally, today the Company is announcing a dividend of $0.52 per share of common stock for the third quarter of 2021, a 2% increase in the dividend compared to the second quarter of 2021. The dividend will be paid on October 8, 2021, to stockholders of record at the close of business on September 24, 2021.
Guidance
CyrusOne is updating its guidance for full year 2021, increasing the lower and upper ends of its guidance ranges for Total Revenue and Normalized FFO per diluted common share, increasing the lower end of its guidance range for Adjusted EBITDA, and decreasing the lower and upper ends of its guidance range for Capital Expenditures. 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. We continue to monitor the global outbreak of COVID-19 and to take steps to mitigate the potential risks to us posed by the pandemic. While the impact on our business has not been significant to date, the length and severity of the effects of the pandemic remain uncertain and unpredictable and could be materially adverse to our business, financial condition, results of operations, cash flows and ability to pay dividends as well as the market price of our common stock.
CyrusOne does not provide forward-looking guidance for GAAP financial measures (other than Total 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, Impairment losses and (gain) loss on asset disposals and other charges in its reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.
Category
Previous 2021 Guidance
Revised 2021 Guidance
Total Revenue
$1,135 - 1,175 million
$1,155 - 1,185 million
Lease and Other Revenues from Customers
$920 - 950 million
$930 - 950 million
Metered Power Reimbursements
$215 - 225 million
$225 - 235 million
Adjusted EBITDA
$570 - 590 million
$575 - 590 million
Normalized FFO per diluted common share
$3.90 - 4.00
$3.95 - 4.05
Capital Expenditures
$925 - 1,025 million
$875 - 975 million
Development(1)
$905 - 985 million
$855 - 935 million
Recurring
$20 - 40 million
$20 - 40 million
(1)Development capital expenditures include the acquisition of land for future development.
Upcoming Conferences and Events
Conference Call Details
CyrusOne will host a conference call on July 29, 2021, at 11:00 AM Eastern Time (10:00 AM Central Time) to discuss its results for the second quarter 2021. A live webcast of the conference call will be available in the “Investors / Events & Presentations” section of the Company's website at http://investor.cyrusone.com/events.cfm. The presentation to be made during the call is now available in this location. 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 July 29, 2021, through August 12, 2021. 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 10158106.
Safe Harbor
This release and the documents incorporated by reference herein contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward- looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and include this statement for purposes of complying with these safe harbor provisions. 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 and our customers’ respective businesses and industries, 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, (i) the potential widespread and highly uncertain impact of public health outbreaks, epidemics and pandemics, such as the COVID-19 pandemic; (ii) loss of key customers; (iii) indemnification and liability provisions as well as service level commitments in our contracts with customers imposing significant costs on us in the event of losses; (iv) economic downturn, natural disaster or oversupply of data centers in the limited geographic areas that we serve; (v) risks related to the development of our properties including, without limitation, obtaining applicable permits, power and connectivity and our ability to successfully lease those properties; (vi) weakening in the fundamentals for data center real estate, including but not limited to, increased competition, falling market rents, decreases in or slowed growth of global data, e-commerce and demand for outsourcing of data storage and cloud-based applications; (vii) loss of access to key third-party service providers and suppliers; (viii) risks of loss of power or cooling which may interrupt our services to our customers; (ix) inability to identify and complete acquisitions and operate acquired properties; (x) our failure to obtain necessary outside financing on favorable terms, or at all; (xi) restrictions in the instruments governing our indebtedness; (xii) risks related to environmental, social and governance matters; (xiii) unknown or contingent liabilities related to our acquisitions; (xiv) significant competition in our industry; (xv) recent turnover, or the further loss of, any of our key personnel; (xvi) risks associated with real estate assets and the industry; (xvii) failure to maintain our status as a REIT (as defined below) or to comply with the highly technical and complex REIT provisions of the Internal Revenue Code of 1986, as amended; (xviii) REIT distribution requirements could adversely affect our ability to execute our business plan; (xix) insufficient cash available for distribution to stockholders; (xx) future offerings of debt may adversely affect the market price of our common stock; (xxi) increases in market interest rates will increase our borrowing costs and may drive potential investors to seek higher dividend yields and reduce demand for our common stock; (xxii) market price and volume of stock could be volatile; (xxiii) risks related to regulatory changes impacting our customers and demand for colocation space in particular geographies; (xxiv) our international activities, including those conducted as a result of land acquisitions and with respect to leased land and buildings, are subject to special risks different from those faced by us in the United States; (xxv) the continuing uncertainty about the future relationship between the United Kingdom and the European Union following the United Kingdom’s withdrawal from the European Union; (xxvi) expanded and widened price increases in certain selective materials for data center development capital expenditures due to international trade negotiations; (xxvii) a failure to comply with anti-corruption laws and regulations; (xxviii) legislative or other actions relating to taxes; (xxix) any significant security breach or cyber-attack on us or our key partners or customers; (xxx) the ongoing trade conflict between the United States and the People’s Republic of China; (xxxi) increased operating costs and capital expenditures at our facilities, including those resulting from higher utilization by our customers, general market conditions and inflation, exceeding revenue growth; and (xxxii) other factors affecting the real estate and technology industries generally. More information on potential risks and uncertainties is available in our recent filings with the Securities and Exchange Commission (SEC), including CyrusOne’s Form 10-K report, Form 10-Q reports, and Form 8-K reports. We disclaim any obligation other than as required by law to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors or for new information, data or methods, future events or other changes.
Use of Non-GAAP Financial Measures and Other Metrics
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, Normalized Funds From Operations per Diluted Common Share, Adjusted EBITDA, Net Operating Income, and Net Debt should not be construed as being more important than, or a substitute for, comparable GAAP financial 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, Normalized FFO per Diluted Common Share, Adjusted EBITDA, and NOI, which are non-GAAP financial measures commonly used in the real estate investments trusts (REIT) industry, as supplemental performance measures. Management uses these measures as supplemental performance measures because, when compared period over period, they capture trends in occupancy rates, rental rates and operating costs. The Company also believes that, as widely recognized measures of the performance of REITs, these measures are used by investors as a basis to evaluate REITs. Other REITs 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 (loss) presented in accordance with GAAP as measures of our performance. FFO, Normalized FFO, NOI, and Adjusted EBITDA should not be used as measures of our liquidity or as indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions. These measures also should not be used as supplements to or substitutes for cash flow from operating activities computed in accordance with 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 122.7 million for the second quarter of 2021 and 115.7 million for the second quarter of 2020.
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 Net income, adjusted for Sales and marketing expenses, General and administrative expenses, Depreciation and amortization expenses, Transaction, acquisition, integration and other related expenses, Interest expense, net, Gain on marketable equity investment, Loss on early extinguishment of debt, Impairment losses and loss on asset disposals, Foreign currency and derivative (gains) losses, net, Other expense (income) and Income tax benefit. 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 Net income 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 pay dividends and 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, net; Income tax (benefit) expense; Depreciation and amortization expenses; Impairment losses and loss on asset disposals; Transaction, acquisition, integration and other related expenses; Legal claim costs; Stock-based compensation expense; Cash severance and management transition costs; Severance-related stock compensation costs; Loss on early extinguishment of debt; Gain on marketable equity investment; Foreign currency and derivative (gains) losses, net and Other expense (income). 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 Impairment losses and loss on asset disposals. 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 adjusted for Loss on early extinguishment of debt; Gain on marketable equity investment; Foreign currency and derivative (gains) losses, net; Amortization of tradenames; Transaction, acquisition, integration and other related expenses; Cash severance and management transition costs; Severance-related stock compensation costs; and Legal claim costs. We believe our 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 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 pay dividends or 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 percentage 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.
7Percentage CSF leased is calculated by dividing CSF under signed leases for colocation space (whether or not the lease has commenced billing) by total CSF. Percentage CSF leased differs from percentage 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 discounts / 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 finance lease liabilities, 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, plus the pro forma impact of the net proceeds from the settlement of the forward sale agreements.
About CyrusOne
CyrusOne (NASDAQ: CONE) is a premier global REIT specializing in design, construction and operation of more than 50 high-performance data centers worldwide. The Company provides mission-critical facilities that ensure the continued operation of IT infrastructure for approximately 1,000 customers, including approximately 200 Fortune 1000 companies.
A leader in hybrid-cloud and multi-cloud deployments, CyrusOne offers colocation, hyperscale, and build-to-suit environments that help customers enhance the strategic connection of their essential data infrastructure and support achievement of sustainability goals. CyrusOne data centers offer world-class flexibility, enabling clients to modernize, simplify, and rapidly respond to changing demand. Combining exceptional financial strength with a broad global footprint, CyrusOne provides customers with long-term stability and strategic advantage at scale.
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 approximately 200 Fortune 1000 companies. CyrusOne's data center offerings provide the flexibility, reliability, and security that enterprise customers require and are delivered through a tailored, customer service-focused platform designed to foster long-term relationships. CyrusOne is committed to full transparency in communication, management, and service delivery throughout its more than 50 data centers worldwide.
Corporate Headquarters
Senior Management
2850 N. Harwood St., Ste. 2200
David Ferdman, Interim President & CEO
Brent Behrman, EVP of Sales
Dallas, Texas 75201
Katherine Motlagh, EVP & Chief Financial Officer
Matt Pullen, EVP & Managing Director, Europe
Phone: (972) 350-0060
John Hatem, EVP & Chief Operating Officer
Robert M. Jackson, EVP General Counsel & Secretary
Website: www.cyrusone.com
Analyst Coverage
Firm
Analyst
Phone Number
BofA Securities
Michael J. Funk
(646) 855-5664
Barclays
Tim Long
(212) 526 4043
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
Green Street
David Guarino
(949) 640-8780
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
RBC Capital Markets
Jonathan Atkin
(415) 633-8589
Raymond James
Frank G. Louthan IV
(404) 442-5867
Stifel
Erik Rasmussen
(212) 271-3461
TD Securities Inc.
Jonathan Kelcher, CFA
(416) 307-9931
Truist
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
Wolfe Research
Jeff Kvaal
(646) 582-9350
CyrusOne Inc.
Summary of Financial Data
(Dollars in millions, except per share amounts)
Three Months
June 30,
March 31,
June 30,
Growth %
2021
2021
2020
Yr/Yr
Revenue
$
284.6
$
298.6
$
256.4
11
%
Net operating income
162.8
162.8
157.4
3
%
Net income
7.4
18.2
45.0
(84)
%
Funds from Operations ("FFO") - Nareit defined
129.0
137.7
154.9
(17)
%
Normalized Funds from Operations ("Normalized FFO")
123.1
120.2
118.9
4
%
Weighted average number of common shares outstanding - diluted for Normalized FFO
122.7
120.5
115.7
6
%
Net income per share - basic
$
0.06
$
0.15
$
0.39
(85)
%
Net income per share - diluted
$
0.06
$
0.15
$
0.39
(85)
%
Normalized FFO per diluted common share
$
1.00
$
1.00
$
1.03
(3)
%
Adjusted EBITDA
$
141.9
$
140.3
$
136.8
4
%
Adjusted EBITDA as a % of Revenue
49.9
%
47.0
%
53.4
%
(3.5) pts
As of
June 30,
March 31,
June 30,
Growth %
2021
2021
2020
Yr/Yr
Balance Sheet Data
Gross investment in real estate
$
7,518.8
$
7,166.0
$
6,504.9
16
%
Accumulated depreciation
(1,977.8)
(1,867.5)
(1,562.7)
27
%
Total investment in real estate, net
5,541.0
5,298.5
4,942.2
12
%
Cash and cash equivalents
369.7
240.9
70.7
n/m
Market value of common equity
8,869.3
8,298.1
8,501.0
4
%
Long-term debt
3,587.8
3,372.7
3,191.3
12
%
Net debt
3,380.9
3,160.4
3,149.4
7
%
Total enterprise value
12,250.2
11,458.5
11,650.4
5
%
Net debt to LQA Adjusted EBITDA(a)
5.0x
4.9x
5.0x
—x
Dividend Activity
Dividends per share
$
0.51
$
0.51
$
0.50
2
%
Portfolio Statistics
Data centers
54
53
51
6
%
Stabilized CSF (000)
4,611
4,422
4,055
14
%
Stabilized CSF % leased
86
%
85
%
88
%
(2) pts
Total CSF (000)
4,889
4,743
4,427
10
%
Total CSF % leased
83
%
82
%
83
%
— pts
Total GSF (000)
8,346
8,139
7,605
10
%
(a) Adjusted to reflect the pro forma impact of the net proceeds from the settlement of the forward sale agreements.
CyrusOne Inc.
Condensed Consolidated Statements of Operations
(Dollars in millions, except per share amounts)
(Unaudited)
Three Months
Six Months
Ended June 30,
Change
Ended June 30,
Change
2021
2020
$
%
2021
2020
$
%
Revenue(a)
$
284.6
$
256.4
$
28.2
11
%
$
583.2
$
502.3
$
80.9
16
%
Operating expenses:
Property operating expenses
121.8
99.0
22.8
23
%
257.6
191.6
66.0
34
%
Sales and marketing
3.7
3.8
(0.1
)
(3
)
%
7.5
8.5
(1.0
)
(12
)
%
General and administrative
16.6
20.3
(3.7
)
(18
)
%
39.6
47.2
(7.6
)
(16
)
%
Depreciation and amortization
123.7
109.7
14.0
13
%
245.1
217.8
27.3
13
%
Transaction, acquisition, integration and other related expenses
0.1
0.1
—
—
%
0.2
0.5
(0.3
)
(60
)
%
Impairment losses and loss on asset disposals
0.1
2.4
(2.3
)
(96
)
%
0.6
2.4
(1.8
)
(75
)
%
Total operating expenses
266.0
235.3
235.3
13
%
550.6
468.0
82.6
18
%
Operating income
18.6
21.1
(207.1
)
(12
)
%
32.6
34.3
(1.7
)
(5
)
%
Interest expense, net
(14.8
)
(13.9
)
(0.9
)
6
%
(29.9
)
(29.9
)
—
—
%
Gain on marketable equity investment
—
50.4
(50.4
)
(100
)
%
2.4
65.1
(62.7
)
(96
)
%
Loss on early extinguishment of debt
—
—
—
n/m
—
(3.4
)
3.4
(100
)
%
Foreign currency and derivative gains (losses), net
1.4
(13.9
)
15.3
n/m
16.8
(8.8
)
25.6
n/m
Other (expense) income
(0.1
)
0.1
(0.2
)
n/m
(0.2
)
—
(0.2
)
n/m
Net income before income taxes
5.1
43.8
(243.3
)
(88
)
%
21.7
57.3
(35.6
)
(62
)
%
Income tax benefit
2.3
1.2
1.1
92
%
3.9
2.4
1.5
63
%
Net income
$
7.4
$
45.0
$
(37.6
)
(84
)
%
$
25.6
$
59.7
$
(34.1
)
(57
)
%
Net income per share - basic
$
0.06
$
0.39
$
(0.33
)
(85
)
%
$
0.21
$
0.52
$
(0.31
)
(60
)
%
Net income per share - diluted
$
0.06
$
0.39
$
(0.33
)
(85
)
%
$
0.21
$
0.52
$
(0.31
)
(60
)
%
(a)
Revenue includes metered power reimbursements of $53.0 million and $37.1 million for the three months ended June 30, 2021 and 2020, respectively, and includes metered power reimbursements of $126.1 million and $71.9 million for the six months ended June 30, 2021 and 2020, respectively.
CyrusOne Inc.
Condensed Consolidated Balance Sheets
(Dollars in millions)
(Unaudited)
June 30,
December 31,
Change
2021
2020
$
%
Assets
Investment in real estate:
Land
$
212.8
$
208.8
$
4.0
2
%
Buildings and improvements
2,253.8
2,035.2
218.6
11
%
Equipment
3,869.0
3,538.9
330.1
9
%
Gross operating real estate
6,335.6
5,782.9
552.7
10
%
Less accumulated depreciation
(1,977.8
)
(1,767.9
)
(209.9
)
12
%
Net operating real estate
4,357.8
4,015.0
342.8
9
%
Construction in progress, including land under development
917.3
982.2
(64.9
)
(7
)
%
Land held for future development
265.9
268.3
(2.4
)
(1
)
%
Total investment in real estate, net
5,541.0
5,265.5
275.5
5
%
Cash and cash equivalents
369.7
271.4
98.3
36
%
Rent and other receivables (net of allowance for doubtful accounts of $2.3 and $3.5 as of June 30, 2021 and December 31, 2020, respectively)
409.4
334.2
75.2
23
%
Restricted cash
24.8
1.5
23.3
n/m
Operating lease right-of-use assets, net
155.0
211.4
(56.4
)
(27
)
%
Equity investments
30.0
67.1
(37.1
)
(55
)
%
Goodwill
455.1
455.1
—
—
%
Intangible assets (net of accumulated amortization of $265.8 and $249.3 as of June 30, 2021 and December 31, 2020, respectively)
141.2
157.8
(16.6
)
(11
)
%
Other assets
115.0
133.4
(18.4
)
(14
)
%
Total assets
$
7,241.2
$
6,897.4
$
343.8
5
%
Liabilities and equity
Debt
$
3,541.6
$
3,409.0
$
132.6
4
%
Finance lease liabilities
162.8
29.1
133.7
n/m
Operating lease liabilities
190.5
249.1
(58.6
)
(24
)
%
Construction costs payable
157.7
133.0
24.7
19
%
Accounts payable and accrued expenses
147.7
151.3
(3.6
)
(2
)
%
Dividends payable
63.6
63.3
0.3
—
%
Deferred revenue and prepaid rents
217.1
174.1
43.0
25
%
Deferred tax liability
45.3
53.0
(7.7
)
(15
)
%
Other liabilities
58.3
77.3
(19.0
)
(25
)
%
Total liabilities
4,584.6
4,339.2
245.4
6
%
Stockholders' equity
Preferred stock, $0.01 par value, 100,000,000 authorized; no shares issued or outstanding
—
—
—
n/m
Common stock, $0.01 par value, 500,000,000 shares authorized and 124,010,867 and 120,442,521 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively
1.2
1.2
—
—
%
Additional paid in capital
3,731.3
3,537.3
194.0
5
%
Accumulated deficit
(1,066.1
)
(966.6
)
(99.5
)
10
%
Accumulated other comprehensive loss
(9.8
)
(13.7
)
3.9
(28
)
%
Total stockholders’ equity
2,656.6
2,558.2
98.4
4
%
Total liabilities and equity
$
7,241.2
$
6,897.4
$
343.8
5
%
CyrusOne Inc.
Condensed Consolidated Statements of Operations
(Dollars in millions, except per share amounts)
(Unaudited)
For the three months ended:
June 30,
March 31,
December 31,
September 30,
June 30,
2021
2021
2020
2020
2020
Revenue(a)
$
284.6
$
298.6
$
268.4
$
262.8
$
256.4
Operating expenses:
Property operating expenses
121.8
135.8
110.3
109.7
99.0
Sales and marketing
3.7
3.8
5.3
4.5
3.8
General and administrative
16.6
23.0
22.4
29.7
20.3
Depreciation and amortization
123.7
121.4
118.5
113.1
109.7
Transaction, acquisition, integration and other related expenses
0.1
0.1
1.5
1.6
0.1
Impairment losses and loss on asset disposals
0.1
0.5
—
8.8
2.4
Total operating expenses
266.0
284.6
258.0
267.4
235.3
Operating income (loss)
18.6
14.0
10.4
(4.6
)
21.1
Interest expense, net
(14.8
)
(15.1
)
(14.5
)
(13.3
)
(13.9
)
Gain on marketable equity investment
—
2.4
19.7
4.7
50.4
Loss on early extinguishment of debt
—
—
—
(3.1
)
—
Foreign currency and derivative gains (losses), net
1.4
15.4
4.1
(22.9
)
(13.9
)
Other (expense) income
(0.1
)
(0.1
)
—
—
0.1
Net income (loss) before income taxes
5.1
16.6
19.7
(39.2
)
43.8
Income tax benefit (expense)
2.3
1.6
(0.7
)
1.9
1.2
Net income (loss)
$
7.4
$
18.2
$
19.0
$
(37.3
)
$
45.0
Net income (loss) per share - basic
$
0.06
$
0.15
$
0.15
$
(0.32
)
$
0.39
Net income (loss) per share - diluted
$
0.06
$
0.15
$
0.15
$
(0.32
)
$
0.39
(a)
Revenue includes metered power reimbursements of $53.0 million, $73.1 million, $44.9 million, $44.6 million and $37.1 million for the three months ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively.
CyrusOne Inc.
Condensed Consolidated Balance Sheets
(Dollars in millions)
(Unaudited)
June 30,
March 31,
December 31,
September 30,
June 30,
2021
2021
2020
2020
2020
Assets
Investment in real estate:
Land
$
212.8
$
207.3
$
208.8
$
181.2
$
175.5
Buildings and improvements
2,253.8
2,046.6
2,035.2
1,918.4
1,857.9
Equipment
3,869.0
3,596.5
3,538.9
3,341.7
3,229.5
Gross operating real estate
6,335.6
5,850.4
5,782.9
5,441.3
5,262.9
Less accumulated depreciation
(1,977.8
)
(1,867.5
)
(1,767.9
)
(1,663.4
)
(1,562.7
)
Net operating real estate
4,357.8
3,982.9
4,015.0
3,777.9
3,700.2
Construction in progress, including land under development
917.3
1,053.3
982.2
1,085.9
1,024.8
Land held for future development
265.9
262.3
268.3
264.4
217.2
Total investment in real estate, net
5,541.0
5,298.5
5,265.5
5,128.2
4,942.2
Cash and cash equivalents
369.7
240.9
271.4
156.5
70.7
Rent and other receivables, net
409.4
389.8
334.2
306.9
307.0
Restricted cash
24.8
1.4
1.5
1.4
1.3
Operating lease right-of-use assets, net
155.0
239.7
211.4
206.9
204.7
Equity investments
30.0
22.9
67.1
178.1
184.9
Goodwill
455.1
455.1
455.1
455.1
455.1
Intangible assets, net
141.2
149.2
157.8
166.4
174.9
Other assets
115.0
114.3
133.4
112.8
127.3
Total assets
$
7,241.2
$
6,911.8
$
6,897.4
$
6,712.3
$
6,468.1
Liabilities and equity
Debt
$
3,541.6
$
3,337.4
$
3,409.0
$
3,197.8
$
3,156.9
Finance lease liabilities
162.8
28.6
29.1
29.2
28.8
Operating lease liabilities
190.5
277.9
249.1
244.3
240.5
Construction costs payable
157.7
137.5
133.0
168.2
155.7
Accounts payable and accrued expenses
147.7
168.9
151.3
145.3
127.0
Dividends payable
63.6
62.0
63.3
63.1
59.7
Deferred revenue and prepaid rents
217.1
183.2
174.1
166.8
166.2
Deferred tax liability
45.3
48.2
53.0
55.4
55.8
Other liabilities
58.3
53.3
77.3
37.8
16.8
Total liabilities
4,584.6
4,297.0
4,339.2
4,107.9
4,007.4
Stockholders' equity
Preferred stock, $0.01 par value, 100,000,000 authorized; no shares issued or outstanding
—
—
—
—
—
Common stock, $0.01 par value, 500,000,000 shares authorized and 124,010,867 and 120,442,521 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively
1.2
1.2
1.2
1.2
1.2
Additional paid in capital
3,731.3
3,628.6
3,537.3
3,532.9
3,305.9
Accumulated deficit
(1,066.1
)
(1,010.2
)
(966.6
)
(923.9
)
(824.7
)
Accumulated other comprehensive loss
(9.8
)
(4.8
)
(13.7
)
(5.8
)
(21.7
)
Total stockholders' equity
2,656.6
2,614.8
2,558.2
2,604.4
2,460.7
Total liabilities and equity
$
7,241.2
$
6,911.8
$
6,897.4
$
6,712.3
$
6,468.1
CyrusOne Inc.
Condensed Consolidated Statements of Cash Flows
(Dollars in millions)
(Unaudited)
Six Months Ended June 30, 2021
Six Months Ended June 30, 2020
Three Months Ended June 30, 2021
Three Months Ended June 30, 2020
Cash flows from operating activities:
Net income
$
25.6
$
59.7
$
7.4
$
45.0
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
245.1
217.8
123.7
109.7
Provision for bad debt expense
(0.9
)
—
0.2
0.1
Gain on marketable equity investment
(2.4
)
(65.1
)
—
(50.4
)
Foreign currency and derivative (gains) losses, net
(16.8
)
8.8
(1.4
)
13.9
Proceeds from swap terminations
—
2.9
—
—
Impairment losses and loss on asset disposals
0.6
2.2
0.1
2.2
Loss on early extinguishment of debt
—
3.4
—
—
Interest expense amortization, net
3.5
3.6
1.9
1.6
Stock-based compensation expense
8.7
7.0
4.3
3.3
Deferred income tax benefit
(6.0
)
(4.2
)
(3.4
)
(2.2
)
Operating lease cost
10.3
13.0
5.1
6.8
Other (expense) income
(0.1
)
0.5
—
0.3
Change in operating assets and liabilities:
Rent and other receivables, net and other assets
(68.5
)
(31.0
)
(25.1
)
(1.6
)
Accounts payable and accrued expenses
(3.3
)
4.7
(21.7
)
5.9
Deferred revenue and prepaid rents
42.5
2.0
34.0
(1.2
)
Operating lease liabilities
(12.2
)
(11.1
)
(5.7
)
(5.5
)
Net cash provided by operating activities
226.1
214.2
119.4
127.9
Cash flows from investing activities:
Investments in real estate
(361.7
)
(458.0
)
(186.3
)
(261.5
)
Proceeds from sale of equity investments
46.6
8.2
—
8.2
Equity investments
(7.1
)
(4.7
)
(7.1
)
(1.4
)
Proceeds from the sale of real estate assets
4.4
0.3
—
0.3
Net cash used in investing activities
(317.8
)
(454.2
)
(193.4
)
(254.4
)
Cash flows from financing activities:
Issuance of common stock, net
194.2
103.3
98.4
102.7
Dividends paid
(124.7
)
(116.1
)
(61.7
)
(57.7
)
Proceeds from revolving credit facility
173.4
438.8
83.1
194.4
Repayments of revolving credit facility
(610.5
)
(723.1
)
(486.3
)
(100.0
)
Proceeds from Euro bond
603.1
550.2
603.1
(0.4
)
Proceeds from unsecured term loan
—
1,100.0
—
—
Repayments of unsecured term loan
—
(1,100.0
)
—
—
Payment of deferred financing costs
(5.0
)
(12.5
)
(5.0
)
1.1
Payments on finance lease liabilities
(2.2
)
(1.3
)
(1.5
)
(0.6
)
Tax payment upon exercise of equity awards
(8.9
)
(6.4
)
—
(0.1
)
Net cash provided by financing activities
219.4
232.9
230.1
139.4
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(6.1
)
1.4
(3.9
)
0.5
Net (increase) decrease in cash, cash equivalents and restricted cash
121.6
(5.7
)
152.2
13.4
Cash, cash equivalents and restricted cash at beginning of period
272.9
77.7
242.3
58.6
Cash, cash equivalents and restricted cash at end of period
$
394.5
$
72.0
$
394.5
$
72.0
Supplemental disclosure of cash flow information:
Cash paid for interest, including amounts capitalized of $10.8 million and $11.4 million in 2021 and 2020, respectively
$
42.2
$
30.0
$
29.4
$
21.7
Cash paid for income taxes
3.2
0.1
3.2
0.1
Non-cash investing and financing activities:
Construction costs payable
157.7
155.7
157.7
155.7
Dividends payable
63.6
59.7
63.6
59.7
CyrusOne Inc.
Reconciliation of Net Income to Net Operating Income
(Dollars in millions)
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
Change
June 30,
Change
2021
2020
$
%
2021
2020
$
%
Net income
$
7.4
$
45.0
$
(37.6
)
(84
)
%
$
25.6
$
59.7
$
(34.1
)
(57
)
%
Sales and marketing expenses
3.7
3.8
(0.1
)
(3
)
%
7.5
8.5
(1.0
)
(12
)
%
General and administrative expenses
16.6
20.3
(3.7
)
(18
)
%
39.6
47.2
(7.6
)
(16
)
%
Depreciation and amortization expenses
123.7
109.7
14.0
13
%
245.1
217.8
27.3
13
%
Transaction, acquisition, integration and other related expenses
0.1
0.1
—
—
%
0.2
0.5
(0.3
)
(60
)
%
Interest expense, net
14.8
13.9
0.9
6
%
29.9
29.9
—
—
%
Gain on marketable equity investment
—
(50.4
)
50.4
(100
)
%
(2.4
)
(65.1
)
62.7
(96
)
%
Loss on early extinguishment of debt
—
—
—
n/m
—
3.4
(3.4
)
(100
)
%
Impairment losses and loss on asset disposals
0.1
2.4
(2.3
)
(96
)
%
0.6
2.4
(1.8
)
(75
)
%
Foreign currency and derivative (gains) losses, net
(1.4
)
13.9
(15.3
)
n/m
(16.8
)
8.8
(25.6
)
n/m
Other expense (income)
0.1
(0.1
)
0.2
n/m
0.2
—
0.2
n/m
Income tax benefit
(2.3
)
(1.2
)
(1.1
)
92
%
(3.9
)
(2.4
)
(1.5
)
63
%
Net Operating Income
$
162.8
$
157.4
$
5.4
3
%
$
325.6
$
310.7
$
14.9
5
%
CyrusOne Inc.
Net Operating Income and Reconciliation of Net Income (Loss) to Adjusted EBITDA
(Dollars in millions)
(Unaudited)
Six Months Ended
Three Months Ended
June 30,
Change
June 30,
March 31,
December 31,
September 30,
June 30,
2021
2020
$
%
2021
2021
2020
2020
2020
Net Operating Income
Revenue
$
583.2
$
502.3
$
80.9
16
%
$
284.6
$
298.6
$
268.4
$
262.8
$
256.4
Property operating expenses
257.6
191.6
66.0
34
%
121.8
135.8
110.3
109.7
99.0
Net Operating Income (NOI)
$
325.6
$
310.7
$
14.9
5
%
$
162.8
$
162.8
$
158.1
$
153.1
$
157.4
NOI as a % of Revenue
55.8
%
61.9
%
57.2
%
54.5
%
58.9
%
58.3
%
61.4
%
Reconciliation of Net Income (Loss) to Adjusted EBITDA:
Net income (loss)
$
25.6
$
59.7
$
(34.1
)
(57
)%
$
7.4
$
18.2
$
19.0
$
(37.3
)
$
45.0
Interest expense, net
29.9
29.9
—
—
%
14.8
15.1
14.5
13.3
13.9
Income tax (benefit) expense
(3.9
)
(2.4
)
(1.5
)
63
%
(2.3
)
(1.6
)
0.7
(1.9
)
(1.2
)
Depreciation and amortization expenses
245.1
217.8
27.3
13
%
123.7
121.4
118.5
113.1
109.7
Impairment losses and loss on asset disposals
0.6
2.4
(1.8
)
(75
)%
0.1
0.5
—
8.8
2.4
EBITDA (Nareit definition)(a)
$
297.3
$
307.4
$
(10.1
)
(3
)%
$
143.7
$
153.6
$
152.7
$
96.0
$
169.8
Transaction, acquisition, integration and other related expenses
0.2
0.5
(0.3
)
(60
)%
0.1
0.1
1.5
1.6
0.1
Legal claim costs
(4.9
)
0.2
(5.1
)
n/m
(4.9
)
—
—
0.1
0.1
Stock-based compensation expense
8.7
6.9
1.8
26
%
4.3
4.4
4.4
4.2
3.4
Cash severance and management transition costs
(0.1
)
6.8
(6.9
)
n/m
—
(0.1
)
0.9
6.4
—
Severance-related stock compensation costs
—
0.1
(0.1
)
(100
)%
—
—
0.2
2.6
—
Loss on early extinguishment of debt
—
3.4
(3.4
)
(100
)%
—
—
—
3.1
—
Gain on marketable equity investment
(2.4
)
(65.1
)
62.7
(96
)%
—
(2.4
)
(19.7
)
(4.7
)
(50.4
)
Foreign currency and derivative (gains) losses, net
(16.8
)
8.8
(25.6
)
n/m
(1.4
)
(15.4
)
(4.1
)
22.9
13.9
Other expense (income)
0.2
—
0.2
n/m
0.1
0.1
—
—
(0.1
)
Adjusted EBITDA
$
282.2
$
269.0
$
13.2
5
%
$
141.9
$
140.3
$
135.9
$
132.2
$
136.8
Adjusted EBITDA as a % of Revenue
48.4
%
53.6
%
49.9
%
47.0
%
50.6
%
50.3
%
53.4
%
(a)
We calculate Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre) as GAAP Net income (loss) plus Interest expense, net, Income tax (benefit) expense, Depreciation and amortization expenses and Impairment losses and loss (gain) on asset 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 FFO and Normalized FFO
(Dollars in millions)
(Unaudited)
Six Months Ended
Three Months Ended
June 30,
Change
June 30,
March 31,
December 31,
September 30,
June 30,
2021
2020
$
%
2021
2021
2020
2020
2020
Reconciliation of Net Income (Loss) to FFO and Normalized FFO:
Net income (loss)
$
25.6
$
59.7
$
(34.1
)
(57
)
%
$
7.4
$
18.2
$
19.0
$
(37.3
)
$
45.0
Real estate depreciation and amortization
240.5
213.3
27.2
13
%
121.5
119.0
116.1
110.7
107.5
Impairment losses and loss on asset disposals
0.6
2.3
(1.7
)
(74
)
%
0.1
0.5
—
8.8
2.4
Funds from Operations ("FFO") - Nareit defined
$
266.7
$
275.3
$
(8.6
)
(3
)
%
$
129.0
$
137.7
$
135.1
$
82.2
$
154.9
Loss on early extinguishment of debt
—
3.4
(3.4
)
(100
)
%
—
—
—
3.1
—
Gain on marketable equity investment
(2.4
)
(65.1
)
62.7
(96
)
%
—
(2.4
)
(19.7
)
(4.7
)
(50.4
)
Foreign currency and derivative (gains) losses, net
(16.8
)
8.8
(25.6
)
n/m
(1.4
)
(15.4
)
(4.1
)
22.9
13.9
Amortization of tradenames
0.6
0.6
—
—
%
0.3
0.3
0.4
0.2
0.3
Transaction, acquisition, integration and other related expenses
0.2
0.6
(0.4
)
(67
)
%
0.1
0.1
1.5
1.6
0.1
Cash severance and management transition costs
(0.1
)
6.8
(6.9
)
n/m
—
(0.1
)
0.9
6.4
—
Severance-related stock compensation costs
—
0.1
(0.1
)
(100
)
%
—
—
0.2
2.6
—
Legal claim costs
(4.9
)
0.2
(5.1
)
n/m
(4.9
)
—
—
0.1
0.1
Normalized Funds from Operations (Normalized FFO)
$
243.3
$
230.7
$
12.6
5
%
$
123.1
$
120.2
$
114.3
$
114.4
$
118.9
Normalized FFO per diluted common share
$
2.00
$
2.00
$
—
—
%
$
1.00
$
1.00
$
0.94
$
0.96
$
1.03
Weighted average diluted common shares outstanding
121.6
115.4
6.2
5
%
122.7
120.5
120.6
119.2
115.7
Additional Information:
Amortization of deferred financing costs and bond premium / discount
3.5
3.6
(0.1
)
(3
)
%
1.9
1.6
1.6
1.6
1.6
Stock-based compensation expense
8.7
6.9
1.8
26
%
4.3
4.4
4.4
4.2
3.4
Non-real estate depreciation and amortization
4.0
4.0
—
—
%
1.8
2.2
2.0
2.1
2.0
Straight line rent adjustments(a)
(2.0
)
(0.4
)
(1.6
)
n/m
(3.2
)
1.2
(8.0
)
(6.6
)
(2.1
)
Straight line rental expense adjustments
0.8
(0.5
)
1.3
n/m
0.6
0.2
0.1
(0.1
)
(0.2
)
Above and below market rent amortization
(0.1
)
(0.2
)
0.1
(50
)
%
—
(0.1
)
(0.1
)
(0.1
)
(0.1
)
Deferred tax benefit
(5.9
)
(4.2
)
(1.7
)
40
%
(3.3
)
(2.6
)
(0.2
)
(2.7
)
(2.2
)
Deferred revenue, primarily installation revenue(b)
23.9
0.1
23.8
n/m
15.1
8.8
2.3
0.2
2.3
Leasing commissions
(9.0
)
(5.6
)
(3.4
)
61
%
(5.1
)
(3.9
)
(4.3
)
(5.3
)
(3.2
)
Recurring capital expenditures
(6.5
)
(9.9
)
3.4
(34
)
%
(3.9
)
(2.6
)
(0.8
)
(3.1
)
(6.4
)
(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 and Interest Summary
(Unaudited)
Market Capitalization (as of June 30, 2021)
(dollars in millions)
Shares or
Equivalents
Outstanding
Market Price
as of
June 30, 2021
Market Value
Equivalents
(in millions)
Common shares
124,010,867
$
71.52
$
8,869.3
Net Debt
3,380.9
Total Enterprise Value (TEV)
$
12,250.2
Reconciliation of Net Debt
June 30,
March 31,
June 30,
(dollars in millions)
2021
2021
2020
Long-term debt(a)
$
3,587.8
$
3,372.7
$
3,191.3
Finance lease liabilities
162.8
28.6
28.8
Less:
Cash and cash equivalents
(369.7
)
(240.9
)
(70.7
)
Net Debt
$
3,380.9
$
3,160.4
$
3,149.4
(a) Excludes adjustment for deferred financing costs and unamortized bond discounts.
Interest Summary
Three Months Ended
June 30,
March 31,
June 30,
% Change
(dollars in millions)
2021
2021
2020
Yr/Yr
Interest expense and fees, net
$
18.8
$
18.4
$
17.7
6
%
Amortization of deferred financing costs and bond premium / discount
1.9
1.6
1.6
19
%
Capitalized interest
(5.9
)
(4.9
)
(5.4
)
9
%
Total interest expense, net
$
14.8
$
15.1
$
13.9
6
%
CyrusOne Inc.
Debt Schedule and Debt Covenants
(Unaudited)
Debt Schedule (as of June 30, 2021)
(dollars in millions)
Long-term debt:
Amount
Interest Rate
Maturity Date
Revolving credit facility - USD(a)
—
USD LIBOR + 100 bps
March 2025(b)
Term loan(c)
800.0
USD LIBOR + 120 bps(d)
March 2025(e)
2.900% USD senior notes due 2024
600.0
2.900%
November 2024
1.450% EUR senior notes due 2027(f)
593.9
1.450%
January 2027
1.125% EUR senior notes due 2028(f)
593.9
1.125%
May 2028
3.450% USD senior notes due 2029
600.0
3.450%
November 2029
2.150% USD senior notes due 2030
400.0
2.150%
November 2030
Total long-term debt(g)
$
3,587.8
2.03%(h)
Weighted average term of debt(b)(e):
5.9
years
(a)
Revolving credit facility includes 0.20% facility fee on entire revolving credit facility commitment of $1.4 billion.
(b)
Assuming exercise of 12-month extension option.
(c)
$500 million of $800 million synthetically converted into €451 million pursuant to a USD-EUR cross currency swap; $300 million swapped pursuant to USD floating to fixed interest rate swap.
(d)
Interest rate as of June 30, 2021: 1.30%; weighted average interest rate pursuant to swaps: 1.36%.
(e)
Assumes exercise of two 12-month extension options on $100 million tranche.
(f)
Amount outstanding is USD-equivalent of €500 million.
(g)
Excludes adjustment for deferred financing costs and unamortized bond discounts.
(h)
Weighted average interest rate calculated using interest rate on swapped amount.
Debt Covenants - Senior Notes (as of June 30, 2021)
Ratios
Requirement
June 30, 2021
Total Outstanding Indebtedness to Total Assets
≤ 60%
43%
Secured Indebtedness to Total Assets
≤ 40%
2%
Consolidated EBITDA to Interest Expense
≥ 1.50x
6.86x
Total Unencumbered Assets to Unsecured Indebtedness
≥ 150%
236%
CyrusOne Inc.
Colocation Square Footage (CSF) and CSF Leased
(Unaudited)
As of June 30, 2021
As of March 31, 2021
As of June 30, 2020
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
1,217
91
%
1,166
93
%
1,166
92
%
Dallas
621
67
%
621
66
%
621
71
%
Phoenix
581
99
%
581
97
%
581
92
%
San Antonio
434
97
%
434
97
%
367
96
%
Cincinnati
402
68
%
402
68
%
402
73
%
New York Metro
345
72
%
345
66
%
245
76
%
Houston
308
53
%
308
57
%
308
62
%
Chicago
203
80
%
203
80
%
203
78
%
Austin
106
69
%
106
77
%
106
76
%
Raleigh-Durham
94
100
%
94
94
%
94
96
%
Council Bluffs, Iowa
42
15
%
42
15
%
—
—
%
Total - Domestic
4,351
81
%
4,300
81
%
4,093
83
%
Frankfurt
252
100
%
252
90
%
144
99
%
London
167
90
%
148
83
%
148
70
%
Dublin
76
100
%
—
—
%
—
—
%
Amsterdam
39
100
%
39
100
%
39
100
%
Singapore
3
20
%
3
20
%
3
20
%
Total - International
537
96
%
443
88
%
334
85
%
Total - Portfolio
4,889
83
%
4,743
82
%
4,427
83
%
Stabilized Properties(c)
4,611
86
%
4,422
85
%
4,055
88
%
(a)
CSF represents the GSF 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. May not sum to total due to rounding.
(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.
2021 Guidance
Category
Previous
2021 Guidance
Revised
2021 Guidance
Total Revenue
$1,135 - 1,175 million
$1,155 - 1,185 million
Lease and Other Revenues from Customers
$920 - 950 million
$930 - 950 million
Metered Power Reimbursements
$215 - 225 million
$225 - 235 million
Adjusted EBITDA
$570 - 590 million
$575 - 590 million
Normalized FFO per diluted common share
$3.90 - 4.00
$3.95 - 4.05
Capital Expenditures
$925 - 1,025 million
$875 - 975 million
Development(1)
$905 - 985 million
$855 - 935 million
Recurring
$20 - 40 million
$20 - 40 million
(1)Development capital expenditures include the acquisition of land for future development.
CyrusOne is updating its guidance for full year 2021, increasing the lower and upper ends of its guidance ranges for Total Revenue and Normalized FFO per diluted common share, increasing the lower end of its guidance range for Adjusted EBITDA, and decreasing the lower and upper ends of its guidance range for Capital Expenditures. 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. We continue to monitor the global outbreak of COVID-19 and to take steps to mitigate the potential risks to us posed by the pandemic. While the impact on our business has not been significant to date, the length and severity of the effects of the pandemic remain uncertain and unpredictable and could be materially adverse to our business, financial condition, results of operations, cash flows and ability to pay dividends as well as the market price of our common stock.
CyrusOne does not provide forward-looking guidance for GAAP financial measures (other than Total 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, Impairment losses and (gain) loss on asset disposals and other charges in its reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.
CyrusOne Inc.
Data Center Portfolio
As of June 30, 2021 (Unaudited)
Gross Square Feet (GSF)(a)
Powered Shell Available for Future Development (GSF)(k) (000)
Available Critical Load Capacity (MW)(l)
Stabilized Properties(b)
Metro
Area
Annualized
Rent(c)
($000)
Colocation
Space
(CSF)(d)
(000)
CSF Occupied(e)
CSF Leased(f)
Office & Other(g) (000)
Office & Other
Occupied(h)
Supporting Infrastructure(i) (000)
Total(j) (000)
Dallas - Carrollton
Dallas
$93,970
428
74
%
74
%
83
46
%
133
644
—
60
Northern Virginia - Sterling V
Northern Virginia
71,621
383
99
%
99
%
11
100
%
145
539
231
69
Northern Virginia - Sterling VI
Northern Virginia
62,906
272
100
%
100
%
35
—
%
—
307
—
57
Frankfurt II
Frankfurt
44,435
90
100
%
100
%
9
100
%
72
171
10
35
Somerset I
New York Metro
37,201
169
93
%
93
%
27
99
%
149
344
28
25
Northern Virginia - Sterling II
Northern Virginia
36,994
159
100
%
100
%
9
100
%
55
223
—
30
San Antonio III
San Antonio
34,275
132
100
%
100
%
9
100
%
43
184
—
24
Chicago - Aurora I
Chicago
33,251
113
98
%
99
%
34
100
%
223
371
27
52
Phoenix - Chandler VI
Phoenix
30,068
148
100
%
100
%
6
100
%
32
187
169
24
Frankfurt III
Frankfurt
29,933
109
100
%
100
%
16
100
%
100
225
—
40
Dallas - Lewisville*
Dallas
27,314
114
74
%
74
%
11
57
%
54
180
—
21
Totowa - Madison**
New York Metro
26,349
51
86
%
96
%
22
86
%
59
133
—
12
Frankfurt I
Frankfurt
25,962
53
97
%
97
%
8
91
%
57
118
—
18
Cincinnati - North Cincinnati
Cincinnati
25,821
65
99
%
99
%
45
79
%
53
163
62
12
Cincinnati - 7th Street***
Cincinnati
24,217
197
46
%
46
%
6
61
%
175
378
46
17
Austin III
Austin
23,089
62
58
%
58
%
15
81
%
21
98
67
11
Phoenix - Chandler I
Phoenix
22,600
74
99
%
100
%
35
12
%
39
147
31
12
Phoenix - Chandler V
Phoenix
22,541
143
95
%
95
%
2
97
%
25
170
13
24
Phoenix - Chandler II
Phoenix
21,661
74
100
%
100
%
6
53
%
26
105
—
12
Houston - Houston West II
Houston
20,620
80
71
%
72
%
4
97
%
55
139
11
12
Phoenix - Chandler III
Phoenix
20,553
68
100
%
100
%
2
—
%
30
101
—
12
Raleigh-Durham I
Raleigh-Durham
20,401
94
98
%
100
%
16
99
%
82
192
235
14
Houston - Houston West I
Houston
20,246
112
49
%
49
%
11
100
%
37
161
3
32
San Antonio I
San Antonio
19,770
44
99
%
99
%
6
83
%
46
96
11
12
Northern Virginia - Sterling III
Northern Virginia
19,633
79
100
%
100
%
7
100
%
34
120
—
15
Northern Virginia - Sterling IV
Northern Virginia
18,001
81
100
%
100
%
7
100
%
34
122
—
15
Wappingers Falls I**
New York Metro
17,843
37
62
%
62
%
20
86
%
15
72
—
7
San Antonio II
San Antonio
17,174
64
100
%
100
%
11
100
%
41
117
—
12
Northern Virginia - Sterling I
Northern Virginia
16,088
78
91
%
92
%
6
63
%
49
132
—
12
London II*
London
16,036
64
100
%
100
%
10
100
%
94
168
3
21
Austin II
Austin
15,613
44
83
%
83
%
2
90
%
22
68
—
7
London I*
London
15,105
38
100
%
100
%
12
56
%
58
107
—
15
San Antonio V
San Antonio
14,479
134
90
%
90
%
14
100
%
38
187
1
21
Phoenix - Chandler IV
Phoenix
12,959
73
100
%
100
%
3
100
%
27
103
—
12
San Antonio IV
San Antonio
12,748
60
100
%
100
%
12
100
%
27
99
—
12
Florence
Cincinnati
10,696
53
99
%
99
%
47
87
%
40
140
—
9
Houston - Galleria
Houston
9,304
63
38
%
38
%
23
21
%
25
112
—
11
Cincinnati - Hamilton*
Cincinnati
9,061
47
64
%
64
%
1
100
%
35
83
—
9
Chicago - Aurora II
Chicago
8,476
77
57
%
58
%
45
2
%
14
136
272
16
Houston - Houston West III
Houston
8,076
53
50
%
50
%
10
13
%
32
95
209
6
London - Great Bridgewater**
London
7,334
10
91
%
91
%
—
—
%
1
11
—
1
London III*
London
6,806
39
100
%
100
%
2
100
%
45
86
—
12
Norwalk I**
New York Metro
6,804
13
100
%
100
%
10
88
%
41
63
83
3
Stamford - Riverbend**
New York Metro
5,062
20
22
%
22
%
—
—
%
8
28
—
5
Cincinnati - Mason
Cincinnati
4,738
34
100
%
100
%
26
98
%
17
78
—
4
Dallas - Allen
Dallas
4,466
79
20
%
20
%
—
—
%
58
137
204
6
Amsterdam I
Amsterdam
4,403
39
100
%
100
%
15
100
%
40
94
207
4
Chicago - Lombard
Chicago
2,326
14
50
%
50
%
4
79
%
12
30
29
2
Totowa - Commerce**
New York Metro
799
—
—
%
—
%
20
44
%
6
26
—
—
Cincinnati - Blue Ash*
Cincinnati
516
6
36
%
36
%
7
100
%
2
15
—
1
Singapore - Inter Business Park**
Singapore
381
3
20
%
20
%
—
—
%
—
3
—
1
Dublin
Dublin
—
76
100
%
100
%
19
100
%
32
126
78
12
Stabilized Properties - Total
$1,060,723
4,611
86
%
86
%
762
68
%
2,557
7,930
2,030
883
CyrusOne Inc.
Data Center Portfolio
As of June 30, 2021
(Unaudited)
Gross Square Feet (GSF)(a)
Powered Shell Available for Future Development (GSF)(k) (000)
Available Critical Load Capacity (MW)(l)
Metro
Area
Annualized
Rent(c)
($000)
Colocation
Space
(CSF)(d)
(000)
CSF Occupied(e)
CSF Leased(f)
Office & Other(g) (000)
Office & Other Occupied(h)
Supporting Infrastructure(i) (000)
Total(j) (000)
Stabilized Properties - Total
$
1,060,723
4,611
86
%
86
%
762
68
%
2,557
7,930
2,030
883
Pre-Stabilized Properties(b)
Northern Virginia - Sterling VIII
Northern Virginia
11,778
61
59
%
59
%
4
—
%
25
90
—
12
Northern Virginia - Sterling IX
Northern Virginia
3,668
104
18
%
33
%
1
—
%
68
173
72
21
Council Bluffs I
Iowa
1,915
42
12
%
15
%
14
—
%
18
73
42
5
Somerset (DH #12 and #13)
New York Metro
1,895
54
—
%
—
%
9
—
%
—
63
—
5
London II*(DH #3)
London
—
17
—
%
—
%
—
—
%
—
17
—
7
All Properties - Total
$
1,079,979
4,889
82
%
83
%
791
65
%
2,667
8,346
2,144
933
*
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 June 30, 2021 multiplied by 12. For the month of June 2021, customer reimbursements were $208.4 million annualized and consisted of reimbursements by customers across all facilities with separately metered power. Customer reimbursements under leases with separately metered power vary from month-to-month based on factors such as our customers' utilization of power and the suppliers' pricing of power. From July 1, 2019 through June 30, 2021, customer reimbursements under leases with separately metered power constituted between 14.9% and 19.4% of annualized rent. After giving effect to abatements, free rent and other straight-line adjustments, our annualized effective rent as of June 30, 2021 was $1,074.2 million. Our annualized effective rent was lower than our annualized rent as of June 30, 2021 because our negative straight-line and other adjustments and amortization of deferred revenue exceeded our positive straight-line adjustments due to factors such as the timing of contractual rent escalations and customer payments for services.
(d)
CSF represents the GSF 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 June 30, 2021 divided by total CSF. Leases signed but that have not commenced billing as of June 30, 2021 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 GSF 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 June 30, 2021 divided by total Office & Other space. Leases signed but not commenced as of June 30, 2021 are not included.
(i)
Represents infrastructure support space, including mechanical, telecommunications and utility rooms, as well as building common areas.
(j)
Represents the GSF 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 GSF, rounded to the nearest 1,000.
(l)
Critical power capacity represents the gross aggregate of UPS power installed and available to provide multiple redundancy levels for lease and exclusive use by customers. Capacity is stated in megawatts as represented by UPS manufacturer nameplate ratings and does not include ancillary UPS capacity not configured for the direct support of leased customer critical IT load (e.g. dedicated office power, office disaster recovery UPS, or UPS utilized by CyrusOne for infrastructure control circuits). Does not sum to total due to rounding.
CyrusOne Inc.
GSF Under Development
As of June 30, 2021
(Dollars in millions) (Unaudited)
GSF Under Development(a)
Under Development Costs(b)
Facilities
Metro 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
Cincinnati - North Cincinnati
Cincinnati
3Q'21
3
—
—
—
3
2.0
$3
$6-9
$9-12
Paris I(g)
Paris
3Q'21
26
4
15
201
246
6.0
45
8-21
53-66
Norwalk I
New York
3Q'21
4
—
—
—
4
2.0
4
4-5
8-9
Frankfurt III (DH #4)
Frankfurt
3Q'21
15
3
15
—
33
4.0
10
3-5
13-15
Phoenix - Chandler VII
Phoenix
3Q'21
62
10
38
—
110
15.0
5
65-75
70-80
Phoenix - Chandler V
Phoenix
3Q'21
—
—
—
—
—
3.0
2
9-12
11-14
Northern Virginia - Sterling IX
Northern Virginia
3Q'21
51
8
2
—
61
6.0
17
7-11
24-28
London I
London
4Q'21
8
—
—
—
8
3.0
—
10-15
10-15
London IV
London
2Q'22
38
7
39
101
186
6.0
—
48-68
48-68
Frankfurt IV
Frankfurt
4Q'22
73
11
39
—
122
17.0
3
118-137
121-140
Total
280
43
148
303
773
64.0
$89
$278-358
$367-447
(a)
Represents GSF at a facility for which, as of June 30, 2021, 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 based on an exchange rate of 1.38 as of June 30, 2021. Frankfurt and Paris development costs are EUR-denominated and shown as USD-equivalent based on an exchange rate of 1.19 as of June 30, 2021.
(c)
Represents GSF under construction that, upon completion, will be powered shell available for future development into GSF.
(d)
Critical power capacity represents the gross aggregate of UPS power installed and available to provide multiple redundancy levels for lease and exclusive use by customers. Capacity is stated in megawatts as represented by UPS manufacturer nameplate ratings and does not include ancillary UPS capacity not configured for the direct support of leased customer critical IT load.
(e)
Actual to date is the cash investment as of June 30, 2021. 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 GSF under development. There may be an increase in costs if customers require greater power density.
(g)
Paris I is 100% preleased, with development planned in phases through mid-2026 to align with customer commitments.
Capital Expenditures - Investment in Real Estate(a)Three Months Ended
Six Months Ended
(dollars in millions)
June 30, 2021
June 30, 2021
Capital expenditures - investment in real estate
$182.4
$355.2
(a) Excludes recurring capital expenditures.
CyrusOne Inc.
Land Available for Future Development (Acres)
As of June 30, 2021 (Unaudited)
As of
Market
June 30, 2021
Amsterdam
8
Austin
22
Chicago
23
Cincinnati
98
Council Bluffs, Iowa
10
Dallas
57
Dublin
15
Houston
20
London
33
Madrid
5
Northern Virginia
24
Phoenix
96
Quincy, Washington
48
San Antonio
12
Santa Clara
23
Total Available(a)
493
Book Value of Total Available
$
265.9
million
(a) Does not sum to total due to rounding.
CyrusOne Inc.
Leasing Statistics - Lease Signings
As of June 30, 2021
(Unaudited)
Period
Number
of Leases(a)
Total CSF Signed(b)
Total kW Signed(c)
Total MRR
Signed (000)(d)
Weighted Average
Lease Term(e)
2Q'21
370
345,000
20,855
$3,487
99
Prior 4Q Avg.
402
120,750
21,382
$2,756
93
1Q'21
414
156,000
28,493
$2,947
116
4Q'20
383
162,000
31,321
$4,112
117
3Q'20
415
15,000
3,756
$894
54
2Q'20(f)
396
150,000
21,956
$3,070
84
(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 GSF 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, and subject to full build out of projects subject to additional conditions. 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 $0.7 million in 2Q'21 and $0.2 million in 2Q'20, 3Q'20, 4Q'20 and 1Q'21.
(e)
Calculated on a CSF-weighted basis.
(f)
Includes exercise of previously disclosed (in 3Q’19) paid reservation for 4.5 MW and 30,000 CSF totaling approximately $5.5 million in annualized GAAP revenue in 2Q’20.
CyrusOne Inc.
New MRR Signed - Existing vs. New Customers
As of June 30, 2021
(Dollars in thousands)
(Unaudited)
New MRR Signed(a) 3Q'19(b) 4Q'19 1Q'20 2Q'20 3Q'20 4Q'20 1Q'21 2Q'21 Existing Customers$2,849
$843
$4,756
$2,872
$841
$3,881
$2,827
$3,332
New Customers$1,007
$220
$238
$198
$53
$231
$120
$155
Total$3,856
$1,063
$4,994
$3,070
$894
$4,112
$2,947
$3,487
% from Existing Customers
74%
79%
95%
94%
94%
94%
96%
96%
(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 $0.7 million in 2Q'21, $0.3 million in 1Q'20, $0.2 million in 4Q'19, 2Q'20, 3Q'20, 4Q'20, and 1Q'21, and $0.1 million in 3Q'19.
(b)
3Q'19 leasing statistics updated from those reported in 3Q'19-1Q'20 earnings materials to remove the prior inclusion of the paid reservation that was exercised in 2Q'20 and included in the 2Q'20 leasing results (30,000 CSF, 4.5 MW, and approximately $0.5 million in monthly recurring rent).
CyrusOne Inc.
Customer Sector Diversification(a)
As of June 30, 2021
(Unaudited)
Principal Customer Industry
Number of
Locations
Annualized Rent(b) (000)
Percentage of Portfolio Annualized Rent(c)
Weighted Average Remaining Lease Term in Months(d)
1
Information Technology
12
$
217,526
20.2
%
89.0
2
Information Technology
11
79,548
7.4
%
20.8
3
Information Technology
5
72,380
6.7
%
36.2
4
Information Technology
5
58,946
5.5
%
38.1
5
Information Technology
5
43,642
4.0
%
36.1
6
Information Technology
9
33,210
3.1
%
39.7
7
Information Technology
3
22,058
2.0
%
29.3
8
Financial Services
1
19,818
1.8
%
117.0
9
Healthcare
2
16,309
1.5
%
78.0
10
Research and Consulting Services
3
14,958
1.4
%
16.0
11
Information Technology
7
13,054
1.2
%
30.8
12
Financial Services
2
11,392
1.1
%
36.9
13
Financial Services
4
11,241
1.0
%
81.2
14
Information Technology
1
9,789
0.9
%
32.6
15
Financial Services
4
9,271
0.9
%
79.7
16
Telecommunication Services
1
8,656
0.8
%
77.0
17
Telecommunication Services
2
8,639
0.8
%
8.5
18
Information Technology
1
7,910
0.7
%
6.0
19
Telecommunication Services
7
7,608
0.7
%
21.5
20
Information Technology
3
6,934
0.6
%
35.4
$
672,887
62.3
%
55.3
(a)
Customers and their affiliates are consolidated.
(b)
Represents monthly contractual rent (defined as cash rent including customer reimbursements for metered power) under existing customer leases as of June 30, 2021, multiplied by 12. For the month of June 2021, customer reimbursements were $208.4 million annualized and consisted of reimbursements by customers across all facilities with separately metered power. Customer reimbursements under leases with separately metered power vary from month-to-month based on factors such as our customers' utilization of power and the suppliers' pricing of power. From July 1, 2019 through June 30, 2021, customer reimbursements under leases with separately metered power constituted between 14.9% and 19.4% of annualized rent. After giving effect to abatements, free rent and other straight-line adjustments, our annualized effective rent as of June 30, 2021 was $1,074.2 million. Our annualized effective rent was lower than our annualized rent as of June 30, 2021 because our negative straight-line and other adjustments and amortization of deferred revenue exceeded our positive straight-line adjustments due to factors such as the timing of contractual rent escalations and customer payments for services.
(c)
Represents the customer’s total annualized rent divided by the total annualized rent in the portfolio as of June 30, 2021, which was approximately $1,080.0 million.
(d)
Weighted average based on customer’s percentage of total annualized rent expiring and is as of June 30, 2021, assuming that customers exercise no renewal options and exercise all early termination rights that require payment of less than 50% of the remaining rents. Early termination rights that require payment of 50% or more of the remaining lease payments are not assumed to be exercised because such payments approximate the profitability margin of leasing that space to the customer, such that we do not consider early termination to be economically detrimental to us.
CyrusOne Inc.
Lease Distribution
As of June 30, 2021
(Unaudited)
GSF Under Lease(a)
Number of
Customers(b)
Percentage of
All Customers
Total Leased GSF(c) (000)
Percentage of
Portfolio
Leased GSF
Annualized
Rent(d) (000)
Percentage of
Annualized Rent
0-999
618
66
%
128
2
%
$
100,551
9
%
1000-2499
121
13
%
190
3
%
48,052
4
%
2500-4999
60
6
%
216
4
%
42,082
4
%
5000-9999
49
5
%
335
5
%
61,491
6
%
10000+
91
10
%
5,363
86
%
827,802
77
%
Total
939
100
%
6,231
100
%
$
1,079,979
100
%
(a)
Represents all leases in our portfolio, including colocation, office and other leases.
(b)
Represents the number of customers occupying data center, office and other space as of June 30, 2021. 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 GSF is estimated based on such customer’s direct CSF or office and light-industrial space plus management’s estimate of infrastructure support space, including mechanical, telecommunications and utility rooms, as well as building common areas.
(d)
Represents monthly contractual rent (defined as cash rent including customer reimbursements for metered power) under existing customer leases as of June 30, 2021, multiplied by 12. For the month of June 2021, customer reimbursements were $208.4 million annualized and consisted of reimbursements by customers across all facilities with separately metered power. Customer reimbursements under leases with separately metered power vary from month-to-month based on factors such as our customers' utilization of power and the suppliers' pricing of power. From July 1, 2019 through June 30, 2021, customer reimbursements under leases with separately metered power constituted between 14.9% and 19.4% of annualized rent. After giving effect to abatements, free rent and other straight-line adjustments, our annualized effective rent as of June 30, 2021 was $1,074.2 million. Our annualized effective rent was lower than our annualized rent as of June 30, 2021 because our negative straight-line and other adjustments and amortization of deferred revenue exceeded our positive straight-line adjustments due to factors such as the timing of contractual rent escalations and customer payments for services.
CyrusOne Inc.
Lease Expirations
As of June 30, 2021
(Unaudited)
Year(a)
Number of Leases Expiring(b)
Total
GSF Expiring (000)
Percentage of
Total GSF
Annualized Rent(c) (000)
Percentage of
Annualized Rent
Annualized Rent at Expiration(d) (000)
Percentage of
Annualized Rent
at Expiration
Available
2,115
25
%
Month-to-Month
1,757
153
2
%
$
56,316
5
%
$
56,699
5
%
2021
1,907
471
6
%
96,461
9
%
96,806
8
%
2022
2,794
886
11
%
169,021
16
%
185,096
16
%
2023
1,540
1,154
14
%
183,143
17
%
189,980
16
%
2024
836
654
8
%
127,022
12
%
134,898
11
%
2025
198
264
3
%
65,919
6
%
75,194
6
%
2026
119
749
9
%
126,944
12
%
138,435
12
%
2027
51
622
7
%
99,573
9
%
114,230
10
%
2028
27
304
4
%
39,327
3
%
45,505
4
%
2029
8
83
1
%
7,078
1
%
8,250
1
%
2030
8
177
2
%
15,567
1
%
29,025
2
%
2031 - Thereafter
29
715
8
%
93,607
9
%
106,144
9
%
Total
9,274
8,346
100
%
$
1,079,979
100
%
$
1,180,261
100
%
(a)
Leases that were auto-renewed prior to June 30, 2021 are shown in the calendar year in which their current auto-renewed term expires. Unless otherwise stated in the footnotes, the information set forth in the table assumes that customers exercise no renewal options and exercise all early termination rights that require payment of less than 50% of the remaining rents. Early termination rights that require payment of 50% or more of the remaining lease payments are not assumed to be exercised.
(b)
Number of leases represents each agreement with a customer. A lease agreement could include multiple spaces and a customer could have multiple leases.
(c)
Represents monthly contractual rent (defined as cash rent including customer reimbursements for metered power) under existing customer leases as of June 30, 2021, multiplied by 12. For the month of June 2021, customer reimbursements were $208.4 million annualized and consisted of reimbursements by customers across all facilities with separately metered power. Customer reimbursements under leases with separately metered power vary from month-to-month based on factors such as our customers' utilization of power and the suppliers' pricing of power. From July 1, 2019 through June 30, 2021, customer reimbursements under leases with separately metered power constituted between 14.9% and 19.4% of annualized rent. After giving effect to abatements, free rent and other straight-line adjustments, our annualized effective rent as of June 30, 2021 was $1,074.2 million. Our annualized effective rent was lower than our annualized rent as of June 30, 2021 because our negative straight-line and other adjustments and amortization of deferred revenue exceeded our positive straight-line adjustments due to factors such as the timing of contractual rent escalations and customer payments for services.
(d)
Represents the final monthly contractual rent under existing customer leases that had commenced as of June 30, 2021, multiplied by 12.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210728006006/en/
Investor Relations Michael Schafer Vice President, Capital Markets & Investor Relations 972-350-0060 investorrelations@cyrusone.com
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