4Q’17 Year-over-Year Revenue Growth of 31% and
Adjusted EBITDA Growth of 43%Announcing a 10% Increase in 1Q’18
Dividend per Share to $0.46
CyrusOne Inc. (NASDAQ: CONE), a premier global data center REIT,
today announced fourth quarter and full year 2017 earnings.
Highlights
Category
4Q’17
% Changevs. 4Q’16
FY’17
% Changevs. FY’16
Revenue $180.5 million 31% $672.0 million 27% Net income $2.8
million n/m $(83.5) million n/m Adjusted EBITDA $104.2 million 43%
$371.6 million 33% Normalized FFO $78.4 million 39% $278.9 million
33% Net income per share $0.03 n/m $(0.95) n/m Normalized FFO per
share $0.84 24% $3.12 17%
- Leased 9 megawatts (“MW”) and 86,000
colocation square feet (“CSF”) in the fourth quarter, totaling $18
million in annualized GAAP revenue
- For full year 2017, signed more than
1,700 leases totaling 58 MW and 521,000 CSF, representing $105
million in annualized GAAP revenue
- Announcing a 10% increase in the
quarterly dividend for the first quarter of 2018 to $0.46 per
share, up from $0.42 per share in 2017
- Announced agreement to acquire Zenium
Data Centers (“Zenium”), extending our global footprint into
Europe’s two largest markets, London and Frankfurt, and
establishing a platform for further expansion in Europe
- Signed commercial agreement with, and
made $100 million investment in, GDS Holdings Limited (“GDS”)
(NASDAQ: GDS), a leading data center provider in China, creating
cross-selling opportunities and expanding our global presence
- Value of investment has increased more
than 75% as of 12/31/17
- Acquired 44 acres of land in the
Atlanta suburb of Douglasville, Georgia, expanding the Company’s
presence in the Southeast
- Enhanced liquidity and strengthened
balance sheet through $400 million offering of senior notes and
sale of 4.8 million shares of common stock ($296 million in net
proceeds) under at-the-market equity program
“The revenue and Adjusted EBITDA growth rates for the quarter
were among our highest since going public,” said Gary Wojtaszek,
president and chief executive officer of CyrusOne. “We had another
very strong year signing $105 million in annualized revenue,
increasing the size of our footprint by more than 50%, extending
our presence to the Southeastern U.S. and Europe, developing a
solution for our customers in China, and raising nearly $2.5
billion in the capital markets. We are very excited about this next
phase of growth for the company as we expand internationally to
help our customers with their increasingly global
requirements.”
Fourth Quarter 2017 Financial Results
Revenue was $180.5 million for the fourth quarter, compared to
$137.4 million for the same period in 2016, an increase of 31%. The
increase in revenue was driven primarily by a 49% increase in
leased CSF and additional interconnection services.
Net income was $2.8 million for the fourth quarter, compared to
net income of $0.8 million in the same period in 2016. Net income
per basic and diluted common share1 was $0.03 in the fourth quarter
of 2017, compared to net income of $0.01 per basic and diluted
common share in the same period in 2016.
Net operating income (NOI)2 was $120.3 million for the fourth
quarter, compared to $89.6 million in the same period in 2016, an
increase of 34%. Adjusted EBITDA3 was $104.2 million for the fourth
quarter, compared to $73.0 million in the same period in 2016, an
increase of 43%.
Normalized Funds From Operations (Normalized FFO)4 was $78.4
million for the fourth quarter, compared to $56.4 million in the
same period in 2016, an increase of 39%. Normalized FFO per basic
and diluted common share was $0.84 in the fourth quarter of 2017,
an increase of 24% over fourth quarter 2016.
Leasing Activity
CyrusOne leased approximately 9 MW of power and 86,000 CSF in
the fourth quarter, representing $1.5 million in monthly recurring
rent, inclusive of the monthly impact of installation charges, or
approximately $17.6 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 61 months (5.1
years), and the weighted average remaining lease term of CyrusOne’s
portfolio is 53 months (taking into account the impact of the
backlog). Recurring rent churn6 for the fourth quarter was 1.1%,
compared to 2.2% for the same period in 2016.
Portfolio Utilization and Development
In the fourth quarter, the Company completed construction on
164,000 CSF and 20 MW of power capacity across three projects in
Northern Virginia, Phoenix and Raleigh-Durham, increasing total CSF
across 45 data centers to approximately 3.3 million CSF. CSF
utilization7 as of the end of the fourth quarter was 93% for
stabilized properties8 and 83% overall. In addition, the Company
has development projects underway in Dallas, Northern Virginia,
Phoenix, Austin and the New York Metro area that are expected to
add approximately 163,000 CSF and 39 MW of power capacity.
Balance Sheet and Liquidity
As of December 31, 2017, the Company had gross assets9 totaling
approximately $5.1 billion, an increase of approximately 48% over
gross assets as of December 31, 2016. CyrusOne had $2.10 billion of
long-term debt10, cash and cash equivalents of $151.9 million, and
$1.1 billion available under its unsecured revolving credit
facility as of December 31, 2017. Net debt10 was $1.96 billion as
of December 31, 2017, representing approximately 25% of the
Company's total enterprise value of $7.7 billion, or 4.7x Adjusted
EBITDA for the last quarter annualized. Available liquidity11 was
$1.24 billion as of December 31, 2017.
As previously announced, CyrusOne completed a $400 million
offering of senior notes in early November, using the proceeds to
repay borrowings outstanding under its revolving credit facility.
Also in the fourth quarter, CyrusOne sold approximately 4.8 million
shares of its common stock through its at-the-market equity program
at an average price of $62.09, raising approximately $296 million
in net equity proceeds. As of December 31, 2017, there was $200
million in remaining capacity under the current ATM program.
Dividend
On October 30, 2017, the Company announced a dividend of $0.42
per share of common stock for the fourth quarter of 2017. The
dividend was paid on January 12, 2018, to stockholders of record at
the close of business on December 29, 2017.
Additionally, today the Company is announcing a dividend of
$0.46 per share of common stock for the first quarter of 2018, a
10% increase in the quarterly dividend compared to 2017. The
dividend will be paid on April 13, 2018, to stockholders of record
at the close of business on March 29, 2018.
Guidance
CyrusOne is issuing guidance for full year 2018. The annual
guidance provided below represents forward-looking statements,
which are based on current economic conditions, internal
assumptions about the Company's existing customer base, and the
supply and demand dynamics of the markets in which CyrusOne
operates.
CyrusOne does not provide reconciliations for the non-GAAP
financial measures included in the annual guidance provided below
due to the inherent difficulty in forecasting and quantifying
certain amounts that are necessary for such reconciliations,
including net income (loss) and adjustments that could be made for
transaction and acquisition integration costs, legal claim costs,
lease exit costs, asset impairments and loss on disposals and other
charges in its reconciliation of historic numbers, the amount of
which, based on historical experience, could be significant.
Category
2017Results
2018Guidance(1)
Total Revenue $672 million $810 - 825 million Base Revenue $602
million $735 - 745 million Metered Power Reimbursements $70 million
$75 - 80 million Adjusted EBITDA $372 million $460 - 470 million
Normalized FFO per diluted common share $3.12 $3.18 - 3.28 Capital
Expenditures $915 million $850 - 900 million Development $911
million $845 - 890 million Recurring $4 million $5 - 10 million
(1)Full year 2018 guidance assumes the
Zenium acquisition closes on April 30, 2018. Development
capital
expenditures include the acquisition of land for future
development.
Zenium Acquisition
During the fourth quarter, CyrusOne announced the execution of a
definitive agreement with Quantum Strategic Partners Ltd.
(“Quantum”), a private investment fund managed by Soros Fund
Management LLC and certain other sellers named therein, to purchase
Zenium, a leading hyperscale data center provider in Europe with
four properties in London and Frankfurt, the continent’s two
largest data center markets.
The transaction is expected to provide several key benefits to
CyrusOne, including the following:
- Critical First Step in International
Expansion Strategy: The acquisition of Zenium is the first step
in executing CyrusOne’s previously announced European expansion
strategy, adding four properties in London and Frankfurt, the
continent’s two largest data center markets. The European data
center market is growing rapidly, with reported take-up over the
last eighteen months well over double the prior eighteen-month
period. Additionally, there has been strong demand for larger
deployments, a market segment for which CyrusOne has unique
expertise and capabilities. Establishing a significant European
presence is a critical step in CyrusOne’s strategic objective of
becoming a global provider.
- Accelerated Entry into Important
Markets with Significant Development / Lease-Up Opportunity:
With 22.5 MW of critical load available for development and
lease-up, the acquisition meaningfully accelerates CyrusOne’s
ability to address the increasingly global needs of its existing
customers. At the same time, the Company’s expanding footprint will
allow CyrusOne to more effectively compete for opportunities from
potential customers looking for a single provider with a
geographically diverse presence. Given the significant investment
to date, CyrusOne expects to deliver this incremental capacity at
an estimated build cost of approximately $115 million, or $5.1
million per MW, while the total construction cost per MW across the
assets once fully built out is expected to average $6.5-7.0 million
per MW, largely in line with CyrusOne’s current all-in build
costs.
- Experienced Management Team with
Similar Operating Philosophy and Customer Focus: The Zenium
management team has a proven track record as data center developers
and operators with more than 70 years of combined experience.
CyrusOne will benefit from this local expertise in site selection
and acquisition, data center development, and sales. Similar to
CyrusOne, Zenium has a high-quality customer base with a particular
emphasis on hyperscale cloud companies. The Zenium portfolio
consists of more than 10 customers, with hyperscale companies
representing nearly 75% of contracted revenue. More than half of
the customers will be new to CyrusOne, including two Fortune 1000
companies. Over 75% of the contracted revenue is generated from
investment grade customers, and the weighted average remaining
lease term is approximately six years.
- Significant Operating Leverage:
CyrusOne should benefit from significant operating leverage as the
combined company expands within London and Frankfurt as well as
into new markets, with a new site in Frankfurt already under
contract and advanced discussions under way for additional organic
site developments in London, Frankfurt, and Dublin. Similarly, as
CyrusOne continues to evaluate acquisition opportunities in other
markets, the Company expects to be able to leverage the design
& construction, sales & marketing, and back-office
capabilities of Zenium to generate cost synergies.
This transaction is expected to be dilutive to Normalized FFO
per diluted common share in the first twelve months following the
closing, modestly accretive in the second twelve months, and
meaningfully accretive thereafter.
CyrusOne intends to assume approximately $50 million of debt
currently outstanding under an existing EUR credit facility, with
total committed capacity of approximately $120 million based on the
12/31/17 spot exchange rate. The balance of the purchase price is
expected to be financed through capacity under its $1.1 billion
revolving credit facility.
Appointment of Chief Accounting Officer
On February 16, 2018, the Company’s Board of Directors appointed
Howard Garfield as Senior Vice President and Chief Accounting
Officer effective February 26, 2018. Mr. Garfield replaces Amitabh
Rai who advised the Company of his intention to retire. Mr. Rai
will remain as an employee of the company through May 1, 2018 to
allow for an orderly transition.
“We are very grateful to Amit for all his contributions as Chief
Accounting Officer to CyrusOne since joining the company in 2015,”
said Diane M. Morefield, EVP and Chief Financial Officer. “We wish
him the best in his retirement.”
"We are also very pleased to have Howard join the CyrusOne
leadership team," commented Morefield. “He has a long and
impressive track record in the REIT and broader real estate
industry. I am confident that Howard will play a very valuable role
in helping CyrusOne achieve its business objectives and continue to
scale for growth.
"Mr. Garfield has over 30 years of accounting, tax, treasury and
financial experience, serving in senior and executive management
positions with national and international real estate companies.
Mr. Garfield was most recently with Monogram Residential Trust
(NYSE: MORE), serving as Chief Accounting Officer and Treasurer
from 2009 to September 2017, and Chief Financial Officer from 2009
to 2015. In 2008 and 2009, Mr. Garfield was Senior Vice President
with Lehman Brothers in their private equity real estate funds
group. Mr. Garfield was previously CFO with Hillwood Development, a
real estate private equity firm controlled by Ross Perot, Jr., and
MEPC plc, an international real estate company publicly traded in
the U.K. and the U.S., with responsibilities over accounting, tax
and treasury. Mr. Garfield started his career with Touche Ross, is
a certified public accountant and holds a BBA in Business Honors,
with an emphasis in accounting, from the University of Texas at
Austin.
Upcoming Conferences and Events
- MUFG Property REIT Corporate Access Day
on February 27 in New York City
- Wells Fargo Real Estate Securities
Conference on February 28-March 1 in New York City
- Raymond James Institutional Investor
Conference on March 4-7 in Orlando, Florida
- Deutsche Bank Media, Telecom &
Business Services Conference on March 5-7 in Palm Beach,
Florida
Conference Call Details
CyrusOne will host a conference call on February 22, 2018, at
11:00 AM Eastern Time (10:00 AM Central Time) to discuss its
results for the fourth quarter of 2017. A live webcast of the
conference call and the presentation to be made during the call
will be available under the “Company” tab in the “Investors /
Events and Presentations” section of the Company's website at
http://investor.cyrusone.com/events.cfm. The U.S.
conference call dial-in number is 1-844-492-3731, and the
international dial-in number is 1-412-542-4121. A replay will be
available one hour after the conclusion of the earnings call on
February 22, 2018, through March 8, 2018. The U.S. toll-free replay
dial-in number is 1-877-344-7529 and the international replay
dial-in number is 1-412-317-0088. The replay access code is
10115841.
Safe Harbor
This release and the documents incorporated by reference herein
contain forward-looking statements regarding future events and our
future results that are subject to the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995. All
statements, other than statements of historical facts, are
statements that could be deemed forward-looking statements. These
statements are based on current expectations, estimates, forecasts,
and projections about the industries in which we operate and the
beliefs and assumptions of our management. Words such as "expects,"
"anticipates," "predicts," "projects," "intends," "plans,"
"believes," "seeks," "estimates," "continues," "endeavors,"
"strives," "may," variations of such words and similar expressions
are intended to identify such forward-looking statements. In
addition, any statements that refer to projections of our future
financial performance, our anticipated growth and trends in our
businesses, and other characterizations of future events or
circumstances are forward-looking statements. Readers are cautioned
these forward-looking statements are based on current expectations
and assumptions that are subject to risks and uncertainties, which
could cause our actual results to differ materially and adversely
from those reflected in the forward-looking statements. Factors
that could cause or contribute to such differences include, but are
not limited to, those discussed in this release and those discussed
in other documents we file with the Securities and Exchange
Commission (SEC). More information on potential risks and
uncertainties is available in our recent filings with the SEC,
including CyrusOne's Form 10-K report, Form 10-Q reports, and Form
8-K reports. Actual results may differ materially and adversely
from those expressed in any forward-looking statements. We
undertake no obligation to revise or update any forward-looking
statements for any reason.
Use of Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures
that management believes are helpful in understanding the Company's
business, as further discussed within this press release. These
financial measures, which include Funds From Operations, Normalized
Funds From Operations, Adjusted EBITDA, Net Operating Income,
Adjusted Net Operating Income, and Net Debt should not be construed
as being more important than comparable GAAP measures. Detailed
reconciliations of these non-GAAP financial measures to comparable
GAAP financial measures have been included in the tables that
accompany this release and are available in the Investor Relations
section of www.cyrusone.com.
Management uses FFO, Normalized FFO, Adjusted EBITDA, NOI, and
Adjusted NOI as supplemental performance measures because they
provide performance measures that, when compared year over year,
capture trends in occupancy rates, rental rates and operating
costs. The Company also believes that, as widely recognized
measures of the performance of real estate investment trusts
(REITs) and other companies, these measures will be used by
investors as a basis to compare its operating performance with that
of other companies. Other companies may not calculate these
measures in the same manner, and, as presented, they may not be
comparable to others. Therefore, FFO, Normalized FFO, NOI, Adjusted
NOI, and Adjusted EBITDA should be considered only as supplements
to net income as measures of our performance. FFO, Normalized FFO,
NOI, Adjusted NOI, and Adjusted EBITDA should not be used as
measures of liquidity or as indicative of funds available to fund
the Company's cash needs, including the ability to pay dividends.
These measures also should not be used as substitutes for cash flow
from operating activities computed in accordance with U.S.
GAAP.
1Net income / (loss) per common share is defined as net income /
(loss) divided by the weighted average common shares outstanding
for the period, which were 93.5 million for the fourth quarter of
2017.
2Net Operating Income (NOI) is defined as revenue less property
operating expenses. Amortization of deferred leasing costs is
presented in depreciation and amortization, which is excluded from
NOI. CyrusOne has not historically incurred any tenant improvement
costs. Our sales and marketing costs consist of salaries and
benefits for our internal sales staff, travel and entertainment,
office supplies, marketing and advertising costs. General and
administrative costs include salaries and benefits of our senior
management and support functions, legal and consulting costs, and
other administrative costs. Marketing and advertising costs are not
property-specific, rather these costs support our entire portfolio.
As a result, we have excluded these marketing and advertising costs
from our NOI calculation, consistent with the treatment of general
and administrative costs, which also support our entire portfolio.
From time to time, there may be non-recurring costs in property
operating expenses, and as a result the Company may present
Adjusted Net Operating Income (Adjusted NOI) to exclude the impacts
of those costs.
3Adjusted EBITDA is defined as net income (loss) as defined by
U.S. GAAP plus interest expense, income tax (benefit) expense,
depreciation and amortization, stock-based compensation,
transaction and integration costs, severance and management
transition costs, new accounting standards and systems
implementation costs, asset impairments and (gain) loss on
disposals, lease exit costs, legal claim costs and other special
items. Other companies may not calculate Adjusted EBITDA in the
same manner. Accordingly, the Company's Adjusted EBITDA as
presented may not be comparable to others.
4Normalized Funds From Operations (Normalized FFO) is defined as
Funds From Operations (FFO) plus amortization of customer
relationship intangibles, transaction and acquisition integration
costs, legal claim costs and lease exit costs, and other special
items including loss on extinguishment of debt, severance and
management transition costs, and new accounting standards and
systems implementation costs, as appropriate. FFO is net (loss)
income computed in accordance with U.S. GAAP before real estate
depreciation and amortization and Asset impairments and loss on
disposal. While it is consistent with the definition of FFO
promulgated by the National Association of Real Estate Investment
Trusts, 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. Because the value of the customer
relationship intangibles is inextricably connected to the real
estate acquired, CyrusOne believes the amortization of such
intangibles and impairments of such intangibles is analogous to
real estate depreciation and impairments; therefore, the Company
adds the customer relationship intangible amortization and
impairments back for similar treatment with real estate
depreciation and impairments. The Company believes its Normalized
FFO calculation provides a comparable measure to that used by
others in the industry. However, other REITs may not calculate
Normalized FFO in the same manner. Accordingly, the Company’s
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) as measures of our
performance.
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 utilization is calculated by dividing CSF under signed
leases for available space (whether or not the contract has
commenced billing) by total CSF. CSF Utilized differs from CSF
Leased presented in the Data Center Portfolio table because the
utilization 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% utilized.
9Gross asset value is defined as total assets plus accumulated
depreciation.
10Long-term debt and net debt exclude adjustments for deferred
financing costs. Net debt provides a useful measure of liquidity
and financial health. The Company defines net debt as long-term
debt and capital lease obligations, offset by cash 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 nearly 1,000
customers, including 197 Fortune 1000 companies.
With a track record of meeting and surpassing the aggressive
speed-to-market demands of hyperscale cloud providers, as well as
the expanding IT infrastructure requirements of the
enterprise, CyrusOne provides the flexibility, reliability,
security, and connectivity that foster business growth. CyrusOne
offers a tailored, customer service-focused platform and is
committed to full transparency in communication, management, and
service delivery throughout its 45 data centers worldwide.
Additional information about CyrusOne can be found
at www.CyrusOne.com.
Company Profile
CyrusOne (NASDAQ: CONE) specializes in highly reliable
enterprise-class, carrier-neutral data center properties. The
Company provides mission-critical data center facilities that
protect and ensure the continued operation of IT infrastructure for
nearly 1,000 customers, including 197 Fortune 1000 companies.
CyrusOne's data center offerings provide the flexibility,
reliability, and security that enterprise customers require and are
delivered through a tailored, customer service-focused platform
designed to foster long-term relationships. CyrusOne is committed
to full transparency in communication, management, and service
delivery throughout its 45 data centers worldwide.
- 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
Robert Jackson, EVP General Counsel &
Secretary Dallas, Texas 75201 Diane Morefield, EVP & Chief
Financial Officer John Hatem, EVP Design, Construction &
Operations Phone: (972) 350-0060 Kevin Timmons, EVP & Chief
Technology Officer Blake Hankins, Chief Information Officer
Website: www.cyrusone.com
Tesh Durvasula, EVP & Chief Commercial Officer John Gould, EVP
Global Sales Jonathan Schildkraut, EVP & Chief Strategy Officer
Brent Behrman, EVP Strategic Sales Kellie Teal-Guess, EVP &
Chief People Officer Amitabh Rai, SVP & Chief Accounting
Officer
Analyst Coverage
Firm
Analyst
Phone
Number
Bank of America Merrill Lynch Michael J. Funk (646) 855-5664
Barclays Amir Rozwadowski (212) 526-4043 Citi Mike Rollins (212)
816-1116 Cowen and Company Colby Synesael (646) 562-1355 Credit
Suisse Sami Badri (212) 538-1727 Deutsche Bank Vin Chao (212)
250-6799 Gabelli & Company Sergey Dluzhevskiy (914) 921-8355
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
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
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 Twelve Months December 31,
September 30, December 31,
Growth % December 31, Growth %
2017 2017 2016
Yr/Yr 2017 2016
Yr/Yr Revenue $ 180.5 $ 175.3 $ 137.4 31 % $ 672.0 $
529.1 27 % Net operating income 120.3 112.3 89.6 34 % 436.9 341.6
28 % Net income (loss) 2.8 (55.1 ) 0.8 n/m (83.5 ) 19.9 n/m Funds
from operations (FFO) 65.6 60.7 48.1 36 % 202.9 182.8 11 %
Normalized Funds from Operations (NFFO) 78.4 71.4 56.4 39 % 278.9
210.2 33 % Weighted Average diluted common shares outstanding 93.5
90.9 82.9 13 % 89.4 79.0 13 % Income (loss) per share - basic and
diluted $ 0.03 $ (0.61 ) $ 0.01 n/m $ (0.95 ) $ 0.24 n/m Normalized
FFO per diluted common share $ 0.84 $ 0.79 $ 0.68 24 % $ 3.12 $
2.66 17 % Adjusted EBITDA 104.2 95.9 73.0 43 % 371.6 278.5 33 %
Adjusted EBITDA as a % of Revenue 57.7 % 54.7 % 53.1 % 4.6 pts 55.3
% 52.6 % 2.7 pts
As of December
31, September 30, December 31,
Growth % 2017 2017 2016
Yr/Yr Balance Sheet Data Gross investment in
real estate $ 3,840.8 $ 3,656.1 $ 2,601.6 48 % Accumulated
depreciation (782.4 ) (722.1 ) (578.5 ) 35 % Net investment in real
estate 3,058.4 2,934.0 2,023.1 51 % Cash and cash equivalents 151.9
24.6 14.6 n/m Market value of common equity 5,723.1 5,379.7 3,736.6
53 % Net debt 1,958.2 2,024.0 1,258.5 56 % Total enterprise value
7,681.3 7,403.7 4,995.1 54 % Net debt to LQA Adjusted EBITDA 4.7x
5.3x 4.3x 0.4x
Dividend Activity Dividends per share
$ 0.42 $ 0.42 $ 0.38 11 %
Portfolio Statistics Data
centers 45 44 35 29 % Stabilized CSF 2,653,300 2,493,617 1,895,867
40 % Stabilized CSF % utilized 93 % 93 % 92 % 1 pt Total CSF
3,266,647 3,130,404 2,079,502 57 % Total CSF % utilized 83 % 82 %
85 % (2) pts Total NRSF 5,716,701 5,565,419 3,903,969 46 %
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
2017 2016 $ %
2017 2016 $
% Revenue: Base revenue and other $ 161.6 $
123.2 $ 38.4 31 % $ 602.4 $ 476.7 $ 125.7 26 % Metered power
reimbursements 18.9 14.2
4.7 33 % 69.6
52.4 17.2 33 %
Revenue 180.5 137.4 43.1 31
% 672.0 529.1 142.9 27 %
Costs and expenses: Property operating expenses 60.2 47.8 12.4 26 %
235.1 187.5 47.6 25 % Sales and marketing 3.9 4.0 (0.1 ) (3 )% 17.0
16.9 0.1 1 % General and administrative 16.4 17.9 (1.5 ) (8 )% 67.0
60.7 6.3 10 % Depreciation and amortization 70.8 49.3 21.5 44 %
258.9 183.9 75.0 41 % Transaction and acquisition integration costs
5.1 0.4 4.7 n/m 10.4 4.3 6.1 n/m Asset impairments and loss on
disposal 0.2 5.3
(5.1 ) n/m 59.5 5.3
54.2 n/m Total costs and
expenses 156.6 124.7
31.9 26 % 647.9
458.6 189.3 41 %
Operating income 23.9 12.7 11.2
88 % 24.1 70.5 (46.4 )
(66 )% Interest expense 20.1 11.4 8.7 76 % 68.1 48.8
19.3 40 % Loss on extinguishment of debt —
— — n/m
36.5 — 36.5
n/m
Net (loss) income before income taxes 3.8
1.3 2.5 n/m (80.5 ) 21.7
(102.2 ) n/m Income tax expense (1.0 )
(0.5 ) (0.5 ) 100 %
(3.0 ) (1.8 ) (1.2 ) 67 %
Net (loss) income $ 2.8 $
0.8 $ 2.0
n/m $ (83.5 ) $
19.9 $ (103.4 )
n/m (Loss) income per share - basic and diluted
$ 0.03 $ 0.01 $ 0.02
n/m $ (0.95 ) $ 0.24
$ (1.19 ) n/m
CyrusOne Inc.
Condensed Consolidated Balance
Sheets
(Dollars in millions)
(Unaudited)
December 31, December 31, Change
2017 2016 $
% Assets Investment in real
estate: Land $ 177.1 $ 142.7 $ 34.4 24 % Buildings and improvements
1,371.4 1,008.9 362.5 36 % Equipment 1,813.9 1,042.9 771.0 74 %
Construction in progress 478.4
407.1 71.3 18 %
Subtotal 3,840.8 2,601.6 1,239.2 48 % Accumulated depreciation
(782.4 ) (578.5 )
(203.9 ) 35 % Net investment in real estate
3,058.4 2,023.1
1,035.3 51 % Cash and cash equivalents
151.9 14.6 137.3 n/m Rent and other receivables, net 90.5 83.3 7.2
9 % Goodwill 455.1 455.1 — — % Intangible assets, net 203.0 150.2
52.8 35 % Other assets 353.2
126.1 227.1 n/m
Total assets $ 4,312.1
$ 2,852.4 $
1,459.7 51 %
Liabilities and Equity Accounts payable and accrued expenses
$ 255.2 $ 227.1 $ 28.1 12 % Deferred revenue 111.6 76.7 34.9 46 %
Capital lease obligations 10.1 10.8 (0.7 ) (6 )% Long-term debt,
net 2,089.4 1,240.1 849.3 68 % Lease financing arrangements
131.9 135.7
(3.8 ) (3 )% Total liabilities 2,598.2
1,690.4 907.8
54 % 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
96,137,874 and 83,536,250 shares issued and outstanding at December
31, 2017 and December 31, 2016, respectively 1.0 0.8 0.2 25 %
Additional paid in capital 2,125.6 1,412.3 713.3 51 % Accumulated
deficit (486.9 ) (249.8 ) (237.1 ) 95 % Accumulated other
comprehensive loss 74.2 (1.3 )
75.5 — % Total
stockholders’ equity 1,713.9
1,162.0 551.9 47 %
Total liabilities and equity $ 4,312.1
$ 2,852.4 $
1,459.7 51 %
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, 2017 2017 2017
2017 2016 Revenue: Base revenue and other $
161.6 $ 155.5 $ 151.1 $ 134.2 $ 123.2 Metered power reimbursements
18.9 19.8 15.8
15.1 14.2
Revenue 180.5
175.3 166.9
149.3 137.4 Costs and
expenses: Property operating expenses 60.2 63.0 59.6 52.3 47.8
Sales and marketing 3.9 3.9 4.3 4.9 4.0 General and administrative
16.4 17.5 17.3 15.8 17.9 Depreciation and amortization 70.8 68.7
63.7 55.7 49.3 Transaction and acquisition integration costs 5.1
3.0 1.7 0.6 0.4 Asset impairments and loss on disposal 0.2
55.5 3.6
0.2 5.3 Total costs and expenses
156.6 211.6 150.2
129.5 124.7
Operating income 23.9 (36.3 )
16.7 19.8 12.7 Interest expense 20.1 17.9 16.5
13.6 11.4 Loss on extinguishment of debt —
— 0.3 36.2
—
Net (loss) income before income taxes
3.8 (54.2 ) (0.1 ) (30.0
) 1.3 Income tax expense (1.0 )
(0.9 ) (0.7 ) (0.4 ) (0.5
)
Net (loss) income $ 2.8
$ (55.1 ) $ (0.8 )
$ (30.4 ) $ 0.8
(Loss) income per share - basic and diluted $
0.03 $ (0.61 ) $ (0.01
) $ (0.36 ) $ 0.01
CyrusOne Inc.
Condensed Consolidated Balance
Sheets
(Dollars in millions)
(Unaudited)
December 31, September 30, June 30,
March 31, December 31, 2017 2017
2017 2017 2016
Assets Investment in real estate: Land $ 177.1 $ 172.0 $
160.0 $ 156.9 $ 142.7 Buildings and improvements 1,371.4 1,344.0
1,291.7 1,270.9 1,008.9 Equipment 1,813.9 1,721.2 1,525.3 1,438.0
1,042.9 Construction in progress 478.4
418.9 555.8 371.7
407.1 Subtotal 3,840.8 3,656.1 3,532.8 3,237.5
2,601.6 Accumulated depreciation (782.4 )
(722.1 ) (679.6 ) (625.9 )
(578.5 ) Net investment in real estate 3,058.4
2,934.0 2,853.2
2,611.6 2,023.1 Cash and cash
equivalents 151.9 24.6 40.0 20.4 14.6 Rent and other receivables,
net 90.5 93.0 93.4 89.4 83.3 Restricted cash — 0.1 0.8 0.6 —
Goodwill 455.1 455.1 455.1 455.1 455.1 Intangible assets, net 203.0
209.7 216.3 223.1 150.2 Other assets 353.2
167.3 157.8 143.6
126.1
Total assets $
4,312.1 $ 3,883.8
$ 3,816.6 $ 3,543.8
$ 2,852.4 Liabilities and
Equity Accounts payable and accrued expenses $ 255.2 $ 244.7 $
276.0 $ 268.2 $ 227.1 Deferred revenue 111.6 104.8 96.5 93.3 76.7
Capital lease obligations 10.1 10.9 11.7 12.4 10.8 Long-term debt,
net 2,089.4 2,013.7 1,832.5 1,731.8 1,240.1 Lease financing
arrangements 131.9 133.3
134.0 134.5 135.7
Total liabilities 2,598.2
2,507.4 2,350.7 2,240.2
1,690.4 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 96,137,874 and 83,536,250 shares issued and
outstanding at December 31, 2017 and December 31, 2016,
respectively 1.0 0.9 0.9 0.9 0.8 Additional paid in capital 2,125.6
1,826.0 1,821.9 1,620.5 1,412.3 Accumulated deficit (486.9 ) (449.2
) (355.7 ) (316.5 ) (249.8 ) Accumulated other comprehensive loss
74.2 (1.3 ) (1.2 )
(1.3 ) (1.3 ) Total stockholders' equity
1,713.9 1,376.4
1,465.9 1,303.6 1,162.0
Total liabilities and equity $ 4,312.1
$ 3,883.8 $
3,816.6 $ 3,543.8
$ 2,852.4
CyrusOne Inc.
Condensed Consolidated Statements of
Cash Flow
(Dollars in millions)
(Unaudited)
Twelve Months EndedDecember 31,
2017
Twelve Months EndedDecember 31,
2016
Three Months EndedDecember
31,
Three Months EndedDecember 31,
2016
Cash flows from operating activities: Net (loss) income $ (83.5 ) $
19.9 $ 2.8 $ 0.8 Adjustments to reconcile net (loss) income to net
cash provided by operating activities: Depreciation and
amortization 258.9 183.9 70.8 49.3 Non-cash interest expense and
change in interest accrual 16.5 4.8 14.4 (6.3 ) Stock-based
compensation expense 14.7 12.3 3.1 3.8 Provision for bad debt 0.2
1.6 (0.3 ) 0.7 Loss on extinguishment of debt 36.5 — — — Asset
impairments and loss on disposal 59.5 5.3 0.2 5.3 Change in
operating assets and liabilities: Rent receivables and other assets
(64.3 ) (51.7 ) (10.6 ) (22.7 ) Accounts payable and accrued
expenses 17.0 7.0 12.2 4.4 Deferred revenues 34.0
(2.5 ) 6.8 3.7
Net cash provided by operating activities
289.5 180.6
99.4 39.0 Cash flows from
investing activities: Capital expenditures – asset acquisitions,
net of cash acquired (492.3 ) (131.1 ) — — Capital expenditures –
other development (914.5 ) (600.0 ) (205.4 ) (174.6 ) Equity
investment (100.0 ) —
(100.0 ) —
Net cash used in investing
activities (1,506.8 )
(731.1 ) (305.4 )
(174.6 ) Cash flows from financing activities:
Issuance of common stock 706.0 448.7 297.2 0.1 Stock issuance costs
(0.3 ) (1.6 ) (0.3 ) — Dividends paid (145.7 ) (114.3 ) (38.3 )
(31.5 ) Borrowings from credit facility 1,390.0 710.0 200.0 180.0
Payments on credit facility (1,275.0 ) (460.0 ) (537.7 ) — Payments
on senior notes (474.8 ) — — — Proceeds from issuance of debt
1,217.8 — 417.8 — Payments on capital leases and lease financing
arrangements (9.8 ) (9.1 ) (2.5 ) (2.3 ) Interest paid by lenders
on issuance of the senior notes 2.7 — 2.7 — Payment of note payable
— (1.5 ) — — Debt issuance costs (19.0 ) (8.7 ) (5.4 ) (6.6 )
Payment of debt extinguishment costs (30.4 ) — — — Tax payment upon
exercise of equity awards (6.9 ) (14.2 )
(0.3 ) (0.5 )
Net cash provided by
financing activities 1,354.6
549.3 333.2
139.2 Net increase (decrease) in cash, cash
equivalents and restricted cash 137.3 (1.2 ) 127.2 3.6 Cash, cash
equivalents and restricted cash at beginning of period 14.6
15.8 24.7
11.0
Cash, cash equivalents and restricted cash at
end of period $ 151.9 $
14.6 $ 151.9
$ 14.6 Supplemental disclosures
Cash paid for interest $ 68.8 $ 55.0 $ 10.6 $ 21.6 Cash paid for
income taxes 2.2 1.2 0.3 — Capitalized interest 17.0 10.6 4.6 3.8
Non-cash investing and financing activities Acquisition and
development of properties in accounts payable and other liabilities
115.5 132.7 115.5 132.7 Dividends payable 41.8 33.9 41.8 33.9
CyrusOne Inc.
Net Operating Income and Reconciliation
of Net (Loss) Income 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,
2017 2016
$
% 2017
2017 2017
2017 2016 Net Operating Income
Revenue $672.0
$529.1 $142.9 27% $180.5 $175.3 $166.9 $149.3 $137.4 Property
operating expenses 235.1 187.5 47.6 25%
60.2 63.0 59.6 52.3
47.8
Net Operating Income (NOI)
$436.9 $341.6 $95.3
28% $120.3 $112.3
$107.3 $97.0
$89.6 NOI as a % of Revenue 65.0% 64.6 %
66.6
%
64.1
%
64.3
%
65.0
%
65.2
%
Reconciliation of Net (Loss) Income to Adjusted EBITDA: Net
(loss) income $(83.5) $19.9 $(103.4) n/m $2.8
$(55.1
)
$(0.8
)
$(30.4
)
$0.8 Interest expense 68.1 48.8 19.3 40% 20.1 17.9 16.5 13.6 11.4
Income tax expense 3.0 1.8 1.2 67% 1.0 0.9 0.7 0.4 0.5 Depreciation
and amortization 258.9 183.9 75.0 41% 70.8 68.7 63.7 55.7 49.3
Transaction and acquisition integration costs 10.4 4.3 6.1 142% 5.1
3.0 1.7 0.6 0.4 Legal claim costs 1.1 1.1 — n/m — 0.3 0.6 0.2 0.4
Stock-based compensation 14.7 11.5 3.2 28% 3.1 3.9 4.0 3.7 3.0
Severance and management transition costs 0.5 1.9 (1.4) n/m — — —
0.5 1.9 Loss on extinguishment of debt 36.5 — 36.5 n/m — —
0.3 36.2 — New accounting standards and system
implementation costs 2.4 — 2.4 n/m 1.1 0.8 0.5 — — Asset
impairments and loss on disposals 59.5 5.3
54.2 n/m 0.2 55.5 3.6
0.2 5.3
Adjusted EBITDA
$371.6 $278.5 $93.1
33% $104.2 $95.9
$90.8 $80.7
$73.0 Adjusted EBITDA as a % of Revenue 55.3% 52.6 %
57.7
%
54.7
%
54.4
%
54.1
%
53.1
%
CyrusOne Inc.
Reconciliation of Revenue to Net
Operating Income to Net (Loss) Income
(Dollars in millions)
(Unaudited)
Three Months Ended Twelve Months
Ended December 31, Change
December 31, Change 2017
2016 $ %
2017 2016
$ % Revenue $180.5
$137.4 $43.1 31
%
$672.0 $529.1 $142.9 27 % Property operating expenses
60.2 47.8 12.4 26
%
235.1 187.5 47.6 25 %
Net Operating Income $120.3
$89.6 $30.7 34
%
$436.9 $341.6
$95.3 28 % Sales and marketing
3.9 4.0 (0.1
)
(3
)%
17.0 16.9 0.1 1 % General and administrative 16.4 17.9 (1.5
)
(8
)%
67.0 60.7 6.3 10 % Depreciation and amortization 70.8 49.3 21.5 44
%
258.9 183.9 75.0 41 % Transaction and acquisition integration costs
5.1 0.4 4.7 n/m 10.4 4.3 6.1 142 % Asset impairments and loss on
disposal 0.2 5.3 (5.1
)
n/m 59.5 5.3 54.2 n/m Interest expense 20.1 11.4 8.7 76
%
68.1 48.8 19.3 40 % Loss on extinguishment of debt — — — n/m 36.5 —
36.5 n/m Income tax expense 1.0 0.5 0.5
100
%
3.0 1.8 1.2 67 %
Net
(loss) income $2.8 $0.8
$2.0 n/m
$(83.5
)
$19.9
$(103.4
)
n/m
CyrusOne Inc.
Reconciliation of Net (Loss) Income 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, 2017
2016 $
% 2017 2017
2017 2017
2016 Reconciliation of Net (Loss) Income to FFO and
Normalized FFO: Net (loss) income $
(83.5 ) $ 19.9 $ (103.4 ) n/m $ 2.8 $ (55.1 ) $ (0.8 ) $ (30.4 ) $
0.8 Real estate depreciation and amortization 226.9 157.6 69.3 44 %
62.6 60.3 55.3 48.7 42.0 Asset impairments and loss on disposal
59.5 5.3 54.2 n/m
0.2 55.5
3.6 0.2 5.3
Funds from Operations (FFO) $ 202.9
$ 182.8 $ 20.1 11 %
$ 65.6 $ 60.7 $ 58.1
$ 18.5 $ 48.1 Loss on
extinguishment of debt 36.5 — 36.5 n/m — — 0.3 36.2 — New
accounting standards and system implementation costs 2.4 — 2.4 n/m
1.1 0.8 0.5 — — Amortization of customer relationship intangibles
25.1 20.1 5.0 25 % 6.6 6.6 6.7 5.2 5.6 Transaction and acquisition
integration costs 10.4 4.3 6.1 142 % 5.1 3.0 1.7 0.6 0.4 Severance
and management transition costs 0.5 1.9 (1.4 ) (74 )% — — — 0.5 1.9
Legal claim costs 1.1 1.1
— n/m — 0.3
0.6 0.2
0.4
Normalized Funds from Operations (Normalized
FFO) $ 278.9 $
210.2 $ 68.7 33 %
$ 78.4 $ 71.4
$ 67.9
$ 61.2 $ 56.4
Normalized FFO per diluted common share $
3.12 $ 2.66 $ 0.46 17
% $ 0.84 $ 0.79 $
0.77 $ 0.72 $ 0.68 Weighted
Average diluted common shares outstanding 89.4
79.0 10.4 13 % 93.5 90.9
88.5 84.5 82.9 Additional
Information: Amortization of deferred financing costs and bond
premium 4.3 4.1 0.2 5 % 0.9 1.2 1.2 1.0 1.1 Stock-based
compensation 14.7 11.5 3.2 28 % 3.1 3.9 4.0 3.7 3.0 Non-real estate
depreciation and amortization 6.9 6.2 0.7 11 % 1.6 1.8 1.7 1.8 1.7
Deferred revenue and straight line rent adjustments (9.2 ) (20.2 )
11.0 (54 )% (3.6 ) 6.5 (2.7 ) (9.4 ) (2.5 ) Leasing commissions
(17.3 ) (12.1 ) (5.2 ) 43 % (3.5 ) (6.1 ) (3.8 ) (3.9 ) (3.8 )
Recurring capital expenditures (4.4 ) (5.4 ) 1.0 (19 )% (1.6 ) (0.6
) (0.7 ) (1.5 ) (1.9 )
CyrusOne Inc.
Market Capitalization Summary,
Reconciliation of Net Debt, and Debt Schedule
(Unaudited)
Market
Capitalization
(dollars in millions)
Shares
or
Equivalents
Outstanding
Market Price
as of
December 31, 2017
Market Value
Equivalents
(in millions)
Common shares 96,137,874 $59.53
$5,723.1 Net Debt 1,958.2
Total Enterprise Value (TEV)
$7,681.3
Reconciliation of
Net Debt
(dollars in millions)
December 31, September 30, 2017
2017 Long-term debt(a) $2,100.0 $2,037.7
Capital lease obligations 10.1 10.9 Less: Cash and cash equivalents
(151.9) (24.6)
Net Debt $1,958.2
$2,024.0
(a) Excludes adjustment for deferred
financing costs.
Debt
Schedule (as of December 31, 2017)
(dollars in millions)
Long-term debt: Amount
Interest Rate Maturity Date
Revolving credit facility $0.0 L + 155bps November 2021(a) Term
loan 250.0 2.99% September 2021 Term loan 650.0 2.99% January 2022
5.000% senior notes due 2024, excluding bond premium 700.0 5.000%
March 2024 5.375% senior notes due 2027, excluding bond premium
500.0 5.375% March 2027
Total
long-term debt(b) $2,100.0 4.23%
Weighted average term of debt:
5.9 years
(a) Assuming exercise of one-year
extension option.
(b) Excludes adjustment for deferred
financing costs.
Interest
Summary
Three Months
Twelve Months December 31, September
30, December 31, Growth %
December 31, Growth %
2017 2017 2016
Yr/Yr 2017
2016 Yr/Yr Interest expense and fees
$23.8 $21.0 $14.1 69% $80.8 $55.3 46% Amortization of
deferred financing costs and bond premium 0.9 1.2 1.1 (18)% 4.3 4.1
5% Capitalized interest (4.6) (4.3)
(3.8) 21% (17.0) (10.6) 60%
Total interest
expense $20.1 $17.9
$11.4 76% $68.1 $48.8
40%
CyrusOne Inc.
Colocation Square Footage (CSF) and
Utilization
(Unaudited)
As of December 31, 2017
As of December 31, 2016
Market
Colocation
Space (CSF)(a)
CSF
Utilized(b)
Colocation
Space (CSF)(a)
CSF
Utilized(b)
Northern Virginia 640,102 79% 277,629
100% Phoenix 509,442 91% 215,892 94% Dallas 506,176
85% 431,287 83% Cincinnati 404,255 91% 386,508 92% Houston 308,074
74% 308,074 73% San Antonio 272,681 88% 108,112 99% New York Metro
218,448 82% 121,530 79% Chicago 212,995 64% 111,660 82% Austin
105,610 67% 105,610 50% Raleigh-Durham 75,664 88% — n/a
International 13,200 76% 13,200
70%
Total 3,266,647 83%
2,079,502 85%
Stabilized Properties(c) 2,653,300
93% 1,895,867
92% (a) CSF represents the NRSF at an
operating facility that is currently leased or readily available
for lease as colocation space, where customers locate their servers
and other IT equipment. (b) Utilization is calculated by dividing
CSF under signed leases for colocation space (whether or not the
lease has commenced billing) by total CSF. (c) Stabilized
properties include data halls that have been in service for at
least 24 months or are at least 85% utilized.
CyrusOne Inc.
2018 Guidance
Category
2017
Results
2018
Guidance(1)
Total Revenue $672 million $810 - 825 million Base Revenue $602
million $735 - 745 million Metered Power Reimbursements $70 million
$75 - 80 million Adjusted EBITDA $372 million $460 - 470 million
Normalized FFO per diluted common share $3.12 $3.18 - 3.28 Capital
Expenditures $915 million $850 - 900 million Development $911
million $845 - 890 million Recurring $4 million $5 - 10 million
(1) Full year 2018 guidance assumes the Zenium acquisition
closes on April 30, 2018. Development capital expenditures include
the acquisition of land for future development.
The annual guidance provided above represents forward-looking
statements, which are based on current economic conditions,
internal assumptions about the Company's existing customer base and
the supply and demand dynamics of the markets in which CyrusOne
operates.
CyrusOne does not provide reconciliations for the non-GAAP
financial measures included in the annual guidance provided above
due to the inherent difficulty in forecasting and quantifying
certain amounts that are necessary for such reconciliations,
including net income (loss) and adjustments that could be made for
transaction and acquisition integration costs, legal claim costs,
lease exit costs, asset impairments and loss on disposals and other
charges in its reconciliation of historic numbers, the amount of
which, based on historical experience, could be significant.
CyrusOne Inc.
Data Center Portfolio
As of December 31, 2017
(Unaudited)
Operating Net Rentable Square Feet (NRSF)(a)
Powered
Shell
Available
for Future
Development
(NRSF)(k)
Available
Critical
Load
Capacity
(MW)(l)
Stabilized
Properties(b)
Metro
Area
Annualized
Rent(c)
Colocation
Space
(CSF)(d)
CSF
Leased(e)
CSF
Utilized(f)
Office &
Other(g)
Office
& Other
Leased (h)
Supporting
Infrastructure(i)
Total(j) Dallas - Carrollton Dallas
$67,585,708 304,622 89 % 89 % 64,973 62
% 111,406 481,001 16,000 38 Houston - Houston
West I Houston 42,497,450 112,133 96 % 97 % 11,343 99 % 37,244
160,720 3,000 28 Cincinnati - 7th Street*** Cincinnati 36,405,768
196,696 92 % 92 % 5,744 100 % 175,148 377,588 46,000 16 Dallas -
Lewisville* Dallas 36,257,388 114,054 94 % 94 % 11,374 95 % 54,122
179,550 — 21 Northern Virginia - Sterling II Northern Virginia
30,309,953 158,998 100 % 100 % 8,651 100 % 55,306 222,955 — 30
Somerset I New York Metro 28,531,926 96,918 88 % 88 % 26,613 85 %
88,991 212,522 2,000 11 Chicago - Aurora I Chicago 27,652,512
113,032 96 % 96 % 34,008 100 % 223,478 370,518 27,000 71 Totowa -
Madison** New York Metro 25,970,252 51,290 89 % 89 % 22,477 100 %
58,964 132,731 — 6 Cincinnati - North Cincinnati Cincinnati
25,398,959 65,303 97 % 97 % 44,886 75 % 52,950 163,139 65,000 14
San Antonio III San Antonio 24,337,608 131,767 100 % 100 % 9,309
100 % 43,126 184,202 — 24 Houston - Houston West II Houston
23,301,914 79,540 87 % 87 % 4,355 88 % 55,042 138,937 11,000 12
Wappingers Falls I** New York Metro 22,968,754 37,000 86 % 86 %
20,167 97 % 15,077 72,244 — 3 San Antonio I San Antonio 21,042,190
43,891 100 % 100 % 5,989 83 % 45,650 95,530 11,000 12 Phoenix -
Chandler II Phoenix 19,884,192 74,082 100 % 100 % 5,639 38 % 25,519
105,240 — 12 Northern Virginia - Sterling I Northern Virginia
17,291,618 77,961 100 % 100 % 5,618 77 % 48,598 132,177 — 12
Raleigh-Durham I Raleigh-Durham 17,078,401 75,664 88 % 88 % 9,507
100 % 82,119 167,290 246,000 12 Houston - Galleria Houston
16,864,199 63,469 61 % 61 % 23,259 51 % 24,927 111,655 — 14 Phoenix
- Chandler I Phoenix 16,783,940 74,041 100 % 100 % 34,582 12 %
38,452 147,075 31,000 16 Phoenix - Chandler III Phoenix 16,596,885
67,937 100 % 100 % 2,440 — % 30,415 100,792 — 14 Northern Virginia
- Sterling III Northern Virginia 15,218,979 79,122 100 % 100 %
7,264 100 % 33,603 119,989 — 15 Austin II Austin 13,666,086 43,772
95 % 95 % 1,821 100 % 22,433 68,026 — 5 San Antonio II San Antonio
13,569,018 64,221 100 % 100 % 11,255 100 % 41,127 116,603 — 12
Florence Cincinnati 13,361,160 52,698 99 % 99 % 46,848 87 % 40,374
139,920 — 9 Phoenix - Chandler IV Phoenix 11,264,335 73,433 100 %
100 % 3,039 100 % 26,533 103,005 — 12 Cincinnati - Hamilton*
Cincinnati 9,073,368 46,565 76 % 76 % 1,077 100 % 35,336 82,978 —
10 London - Great Bridgewater** International 5,680,892 10,000 94 %
94 % — — % 514 10,514 — 1 Northern Virginia - Sterling IV Northern
Virginia 5,439,076 81,291 100 % 100 % 5,523 100 % 34,322 121,136 —
15 Cincinnati - Mason Cincinnati 5,394,151 34,072 100 % 100 %
26,458 98 % 17,193 77,723 — 4 Dallas - Midway** Dallas 5,356,920
8,390 100 % 100 % — — % — 8,390 — 1 Phoenix - Chandler VI Phoenix
5,274,000 148,434 58 % 94 % 1,000 100 % 32,037 181,471 10,000 12
Stamford - Riverbend** New York Metro 5,150,002 20,000 23 % 23 % —
— % 8,484 28,484 — 2 Norwalk I** New York Metro 3,766,807 13,240 88
% 92 % 4,085 72 % 40,610 57,935 87,000 2 Dallas - Marsh** Dallas
2,600,005 4,245 100 % 100 % — — % — 4,245 — 1 Chicago - Lombard
Chicago 2,274,283 13,516 61 % 61 % 4,115 100 % 12,230 29,861 29,000
3 Stamford - Omega** New York Metro 1,233,557 — — % — % 18,552 84 %
3,796 22,348 — — Totowa - Commerce** New York Metro 691,429 — — % —
% 20,460 43 % 5,540 26,000 — — Cincinnati - Blue Ash* Cincinnati
616,664 6,193 36 % 36 % 6,821 100 % 2,165 15,179 — 1 South Bend -
Crescent* Chicago 576,976 3,432 43 % 43 % — — % 5,125 8,557 11,000
1 Houston - Houston West III Houston 493,602 — — % — % 10,272 100 %
10,654 20,926 209,000 — Singapore - Inter Business Park**
International 365,132 3,200 22 % 22 % — — % — 3,200 — 1 South Bend
- Monroe Chicago 119,741 6,350 23 % 23 % — — % 6,478 12,828 4,000 1
Cincinnati - Goldcoast Cincinnati 96,090 2,728
— % — % 5,280 — % 16,481
24,489 14,000 1
Stabilized Properties - Total $638,041,890
2,653,300 91 %
93 % 524,804 77
% 1,661,569 4,839,673
822,000 470
CyrusOne Inc. Data Center Portfolio As of December
31, 2017 (Unaudited)
Operating Net Rentable Square
Feet (NRSF)(a)
Powered
Shell
Available
for Future
Development
(NRSF)(k)
Available
Critical
Load
Capacity
(MW)(l)
Metro
Area
Annualized
Rent(c)
Colocation
Space
(CSF)(d)
CSF
Leased(e)
CSF
Utilized(f)
Office &
Other(g)
Office
& Other
Leased (h)
Supporting
Infrastructure(i)
Total(j)
Stabilized Properties - Total $638,041,890
2,653,300 91 %
93 % 524,804
77 % 1,661,569
4,839,673 822,000 470
Pre-Stabilized
Properties(b)
Austin III Austin 9,488,450 61,838 47 % 47 % 15,055 83 % 20,629
97,522 67,000 3 Northern Virginia - Sterling V Northern Virginia
8,874,654 242,730 41 % 44 % 900 — % 112,662 356,292 244,000 30
Houston - Houston West III (DH #1) Houston 2,756,377 52,932 22 % 24
% — — % 21,128 74,060 — 6 Dallas - Carrollton (DH #6) Dallas
1,579,500 74,865 33 % 51 % — — % 21,224 96,089 — 3 Phoenix -
Chandler V Phoenix 1,505,032 71,515 50 % 50 % 996 50 % 16,399
88,910 94,000 6 Chicago - Aurora II (DH #1) Chicago 175,668 76,665
21 % 21 % 10,045 — % 13,875 100,585 272,000 16 San Antonio IV San
Antonio — 32,802 — %
— % 3,577 — %
27,191 63,570
35,000 6
All Properties - Total
$662,421,571 3,266,647
80 % 83 %
555,377 75
% 1,894,677
5,716,701 1,534,000
540 * Indicates
properties in which we hold a leasehold interest in the building
shell and land. All data center infrastructure has been constructed
by us and owned by us. ** Indicates properties in which we hold a
leasehold interest in the building shell, land, and all data center
infrastructure. *** The information provided for the 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% utilized. Pre-stabilized
properties include data halls that have been in service for less
than 24 months and are less than 85% utilized. (c)
Represents monthly contractual rent
(defined as cash rent including customer reimbursements for metered
power) under existing customer leases as of December 31, 2017,
multiplied by 12. For the month of December 2017, customer
reimbursements were $67.8 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, 2016 through December 31, 2017, customer
reimbursements under leases with separately metered power
constituted between 10.2% and 12.6% of annualized rent. After
giving effect to abatements, free rent and other straight-line
adjustments, our annualized effective rent as of December 31, 2017
was $675.7 million. Our annualized effective rent was greater than
our annualized rent as of December 31, 2017 because our positive
straight-line and other adjustments and amortization of deferred
revenue exceeded our negative straight-line adjustments due to
factors such as the timing of contractual rent escalations and
customer prepayments for services.
(d) CSF represents the NRSF at an operating facility that is
currently leased or readily available for lease as colocation
space, where customers locate their servers and other IT equipment.
(e) Percent leased is determined based on CSF being billed to
customers under signed leases as of December 31, 2017 divided by
total CSF. Leases signed but not commenced as of December 31, 2017
are not included. (f) Utilization is calculated by dividing CSF
under signed leases for colocation space (whether or not the lease
has commenced billing) by total CSF. (g) Represents the NRSF at an
operating facility that is currently leased or readily available
for lease as space other than CSF, which is typically office and
other space. (h) Percent leased is determined based on Office &
Other space being billed to customers under signed leases as of
December 31, 2017 divided by total Office & Other space. Leases
signed but not commenced as of December 31, 2017 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. 6 of 18 megawatts of power
capacity for Phoenix - Chandler VI reported as placed into service
in 3Q'17 are under development and are expected to be placed into
service in 1Q'18. 6 of 12 megawatts of power capacity for San
Antonio IV reported as placed into service in 3Q'17 are expected to
be placed into service in late 2018.
CyrusOne Inc.
NRSF Under Development
As of December 31, 2017
(Dollars in millions)
(Unaudited)
NRSF
Under Development(a)
Under Development Costs(b) Facilities
Metropolitan
Area
Estimated
Completion
Date
Colocation
Space
(CSF)
Office &
Other
Supporting
Infrastructure
Powered
Shell(b)
Total
Critical
Load MW
Capacity(c)
Actual to
Date(d)
Estimated
Costs to
Completion(e)
Total Austin III Austin 1Q'18 —
— — — — 3.0
$ 5 $6-8 $11-13 Somerset II New York
Metro 1Q'18 — — — 210,000 210,000 — 15 9-10 24-25 Northern Virginia
- Sterling V Northern Virginia 1Q'18 33,000 — 8,000 — 41,000 3.0 5
17-19 22-24 Phoenix - Chandler VI Phoenix 1Q'18 — — — — — 12.0 17
10-16 27-33 Dallas - Carrollton Dallas 2Q'18 51,000 — 2,000 —
53,000 15.0 4 49-55 53-59 Dallas - Allen Dallas 2Q'18 79,000
27,000 60,000
175,000 341,000
6.0 5 53-59
58-64
Total 163,000
27,000 70,000
385,000 645,000
39.0 $ 51
$144-167 $195-218
(a) Represents NRSF at a facility for which
activities have commenced or are expected to commence in the next 2
quarters to prepare the space for its intended use. Estimates and
timing are subject to change. (b) Represents NRSF under
construction that, upon completion, will be powered shell available
for future development into operating NRSF. (c) Critical load
capacity represents the aggregate power available for lease and
exclusive use by customers expressed in terms of megawatts. The
capacity reported is for non-redundant megawatts, as we can develop
flexible solutions to our customers at multiple resiliency levels.
(d) Actual to date is the cash investment as of December 31, 2017.
There may be accruals above this amount for work completed, for
which cash has not yet been paid. (e) Represents management’s
estimate of the total costs required to complete the current NRSF
under development. There may be an increase in costs if customers
require greater power density.
CyrusOne Inc.
Land Available for Future Development
(Acres)
As of December 31, 2017
(Unaudited)
As of Market
December 31, 2017 Atlanta 44
Austin 22 Chicago 23 Cincinnati 98 Dallas 33 Houston 20
International — New York Metro — Northern Virginia 16 Phoenix 39
Quincy, Washington 48 Raleigh-Durham — San Antonio —
Total
Available 343
CyrusOne Inc.
Leasing Statistics - Lease
Signings
As of December 31, 2017
(Dollars in thousands)
(Unaudited)
Period
Number of
Leases(a)
Total CSF
Signed(b)
Total kW
Signed(c)
Total MRR
Signed ($000)(d)
Weighted
Average
Lease Term(e)
4Q'17 395 86,000
8,600 $1,463
61 Prior 4Q Avg. 425 127,250 14,700 $2,229 80 3Q'17 411
151,000 14,830 $2,228 68 2Q'17 451 136,000 16,673 $2,467 86 1Q'17
480 148,000 18,259 $2,632 103 4Q'16 358 74,000 9,038 $1,590 63
(a) Number of leases represents each agreement with a
customer. A lease agreement could include multiple spaces, and a
customer could have multiple leases. (b) CSF represents the NRSF at
an operating facility that is leased as colocation space, where
customers locate their servers and other IT equipment. (c)
Represents maximum contracted kW that customers may draw during
lease period. Additionally, we can develop flexible solutions for
our customers at multiple resiliency levels, and the kW signed is
unadjusted for this factor. (d) Monthly recurring rent is defined
as the average monthly contractual rent during the term of the
lease. It includes the monthly impact of installation charges of
approximately $0.2 million in 2Q'17-4Q'17 and $0.1 million in each
of the other quarters. (e) Calculated on a CSF-weighted basis.
CyrusOne Inc.
New MRR Signed - Existing vs. New
Customers
As of December 31, 2017
(Dollars in thousands)
(Unaudited)
New MRR(a) Signed ($000)
1Q'16 2Q'16
3Q'16 4Q'16
1Q'17 2Q'17 3Q'17
4Q'17 Existing Customers $1,767 $4,406 $1,796
$1,332 $2,247 $2,322 $1,418 $1,063 New Customers $1,843 $460 $454
$258 $385 $145 $810 $400
Total $3,610 $4,866
$2,250 $1,590 $2,632 $2,467
$2,228 $1,463 % from Existing Customers 49%
91% 80% 84% 85% 94% 64% 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 $0.2
million in 2Q'17-4Q'17 and $0.1 million in each of the other
quarters.
CyrusOne Inc.
Customer Sector
Diversification(a)
As of December 31, 2017
(Unaudited)
Principal Customer Industry
Number of
Locations
Annualized
Rent(b)
Percentage of
Portfolio
Annualized
Rent(c)
Weighted
Average
Remaining
Lease Term in
Months(d)
1 Information Technology 9
$118,237,061 17.8% 93.0 2
Information Technology 9 26,994,022 4.1% 46.9 3 Information
Technology 4 25,234,226 3.8% 86.7 4 Financial Services 1 19,754,228
3.0% 159.0 5 Telecommunication Services 2 15,742,896 2.4% 9.4 6
Research and Consulting Services 3 15,124,425 2.3% 36.4 7
Healthcare 2 14,612,770 2.2% 120.0 8 Energy 5 13,574,772 2.0% 8.2 9
Energy 1 12,611,653 1.9% 26.5 10 Industrials 4 11,224,802 1.7% 20.4
11 Telecommunication Services 7 10,177,171 1.5% 35.9 12 Financial
Services 2 9,038,727 1.4% 68.2 13 Information Technology 4
8,762,775 1.3% 55.7 14 Information Technology 2 7,383,843 1.1% 75.1
15 Information Technology 3 6,806,882 1.0% 120.4 16 Energy 2
6,624,678 1.0% 7.9 17 Financial Services 1 6,600,225 1.0% 29.0 18
Consumer Staples 4 6,309,460 1.0% 38.5 19 Telecommunication
Services 5 5,885,604 0.9% 16.1 20 Consumer Staples 2 5,216,417
0.8% 51.5
$345,916,637
52.2% 70.6 (a)
Customers and their affiliates are consolidated. (b)
Represents monthly contractual rent
(defined as cash rent including customer reimbursements for metered
power) under existing customer leases as of December 31, 2017,
multiplied by 12. For the month of December 2017, customer
reimbursements were $67.8 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, 2016 through December 31, 2017, customer
reimbursements under leases with separately metered power
constituted between 10.2% and 12.6% of annualized rent. After
giving effect to abatements, free rent and other straight-line
adjustments, our annualized effective rent as of December 31, 2017
was $675.7 million. Our annualized effective rent was greater than
our annualized rent as of December 31, 2017 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, 2017,
which was approximately $662.4 million. (d) Weighted average based
on customer’s percentage of total annualized rent expiring and is
as of December 31, 2017, 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, 2017
(Unaudited)
NRSF Under Lease(a)
Number of
Customers(b)
Percentage of
All Customers
Total
Leased
NRSF(c)
Percentage of
Portfolio
Leased NRSF
Annualized
Rent(d)
Percentage of
Annualized Rent
0-999 685 70% 148,208 3%
$70,402,796 11% 1,000-2,499 118 12%
185,717 4% 37,259,253 5% 2,500-4,999 67 7% 234,626 5% 45,074,048 7%
5,000-9,999 44 4% 306,553 7% 60,282,199 9% 10,000+ 74
7% 3,744,050 81%
449,403,275 68%
Total 988
100% 4,619,154
100% $662,421,571
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, 2017. 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, 2017,
multiplied by 12. For the month of December 2017, customer
reimbursements were $67.8 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, 2016 through December 31, 2017, customer
reimbursements under leases with separately metered power
constituted between 10.2% and 12.6% of annualized rent. After
giving effect to abatements, free rent and other straight-line
adjustments, our annualized effective rent as of December 31, 2017
was $675.7 million. Our annualized effective rent was greater than
our annualized rent as of December 31, 2017 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, 2017
(Unaudited)
Year(a)
Number of
Leases
Expiring(b)
Total Operating
NRSF Expiring
Percentage of
Total NRSF
Annualized
Rent(c)
Percentage of
Annualized Rent
Annualized Rent
at Expiration(d)
Percentage of
Annualized Rent
at Expiration
Available 1,097,547 18%
Month-to-Month 555 56,214
1% $17,836,114 3% $18,047,234 2% 2018 2,249 554,759 10% 133,521,351
20% 136,908,269 18% 2019 1,352 485,080 9% 83,799,237 12% 86,330,774
12% 2020 1,314 483,807 9% 64,655,451 10% 67,967,365 9% 2021 607
499,613 9% 78,682,720 12% 89,013,555 12% 2022 222 538,570 9%
45,783,999 7% 62,049,815 8% 2023 78 162,285 3% 19,934,650 3%
27,242,178 4% 2024 39 223,937 4% 30,482,675 5% 39,275,747 5% 2025
39 178,710 3% 26,985,449 4% 31,523,317 4% 2026 26 577,649 10%
74,754,446 11% 81,745,331 11% 2027 16 396,494 7% 45,812,150 7%
59,126,790 8% 2028 - Thereafter 14 462,036
8% 40,173,329 6%
49,029,966 7%
Total 6,511
5,716,701 100%
$662,421,571 100%
$748,260,341 100% (a)
Leases that were auto-renewed prior to December 31, 2017 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, 2017,
multiplied by 12. For the month of December 2017, customer
reimbursements were $67.8 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, 2016 through December 31, 2017, customer
reimbursements under leases with separately metered power
constituted between 10.2% and 12.6% of annualized rent. After
giving effect to abatements, free rent and other straight-line
adjustments, our annualized effective rent as of December 31, 2017
was $675.7 million. Our annualized effective rent was greater than
our annualized rent as of December 31, 2017 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, 2017,
multiplied by 12.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180221006479/en/
CyrusOne Inc.Investor Relations:Michael Schafer,
972-350-0060Vice President, Capital Markets & Investor
Relationsinvestorrelations@cyrusone.com
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