Signed $35.4 Million in Annualized GAAP Revenue
and 28 Megawatts in 1Q’21
CyrusOne Inc. (NASDAQ: CONE), a premier global data center REIT,
today announced first quarter 2021 earnings.
Highlights
Category
1Q’21*
vs.
1Q’20
Revenue
$298.6 million
21%
Net income
$18.2 million
24%
Adjusted EBITDA
$140.3 million
6%
Normalized FFO
$120.2 million
8%
Net income per diluted common share
$0.15
15%
Normalized FFO per diluted common
share
$1.00
3%
*Includes the following electricity rate
impacts at our Texas data centers as a result of Winter Storm
Uri:
– $27.8 million positive impact to Revenue
(Metered Power Reimbursements)
– $(3.7) million negative impact to Net
income, Adjusted EBITDA, and Normalized FFO
– $(0.03) negative impact to Net income
per diluted common share and Normalized FFO per diluted common
share
- Leased 28 megawatts (“MW”) and 156,000 colocation square feet
(“CSF”) in the first quarter, totaling $35.4 million in annualized
GAAP revenue
- Backlog of approximately $113 million in annualized GAAP
revenue as of the end of the first quarter representing
approximately $955 million in total contract value
- Settled a forward sale agreement entered into in 2020,
resulting in net proceeds of approximately $95 million, which were
used to pay down a portion of amounts outstanding on the Company’s
unsecured revolving credit facility
- The Company has approximately $385 million in remaining
available forward equity
- Subsequent to the end of the quarter, executed an agreement to
acquire a 12-acre site in Frankfurt, providing 63 MW of power
capacity to support our continued growth in one of the strongest
data center markets in Europe
“Our bookings for the quarter included strong results from our
U.S. portfolio and a significant contribution from our hyperscale
customers,” said Bruce W. Duncan, president and chief executive
officer of CyrusOne. “We are excited to announce the execution of
an agreement to acquire an additional development site in
Frankfurt, which will give us more product in one of our strongest
markets to support our customers as they expand in Europe. We
remain well positioned for continued growth with a $113 million
revenue backlog, capacity across our markets, and $1.6 billion in
available liquidity, including nearly $400 million in available
forward equity.”
First Quarter 2021 Financial Results
Revenue was $298.6 million for the first quarter, compared to
$245.9 million for the same period in 2020, an increase of 21%. The
increase in revenue was driven in part by $27.8 million in metered
power reimbursements as a result of electricity rate impacts at our
Texas data centers from Winter Storm Uri. Other drivers included a
7% increase in occupied CSF and additional interconnection
services.
Net income was $18.2 million for the first quarter, compared to
net income of $14.7 million in the same period in 2020, an increase
of 24%. Net income for the first quarter included a $15.4 million
gain associated with a change in fair value on the undesignated
portion of the Company’s net investment hedge compared to a $5.1
million gain in the first quarter of 2020. The Company recognized a
$2.4 million gain during the first quarter of 2021 on its
marketable equity investment in GDS Holdings Limited, compared to a
$14.7 million gain in the first quarter of 2020. Additionally, in
the first quarter of 2020, the Company had a $(3.4) million loss on
the early extinguishment of debt associated with the amendment of
its senior unsecured credit agreement. Net income per diluted
common share1 was $0.15 in the first quarter of 2021, compared to
net income per diluted common share of $0.13 in the same period in
2020.
Net operating income (“NOI”)2 was $162.8 million for the first
quarter, compared to $153.3 million in the same period in 2020, an
increase of 6%. Adjusted EBITDA3 was $140.3 million for the first
quarter, compared to $132.2 million in the same period in 2020, an
increase of 6%.
Normalized Funds From Operations (“Normalized FFO”)4 was $120.2
million for the first quarter, compared to $111.8 million in the
same period in 2020, an increase of 8%. Normalized FFO per diluted
common share was $1.00 in the first quarter of 2021, compared to
$0.97 in the same period in 2020, an increase of 3%.
Net income, Adjusted EBITDA, and Normalized FFO were each
negatively impacted by $(3.7) million as a result of higher
electricity rates at our Texas data centers from Winter Storm Uri,
while Net income per diluted common share and Normalized FFO per
diluted common share were each negatively impacted by $(0.03) as a
result.
Leasing Activity
CyrusOne leased approximately 28 MW of power and 156,000 CSF in
the first quarter, representing approximately $2.9 million in
monthly recurring rent, inclusive of the monthly impact of
installation charges. The leasing for the quarter represents
approximately $35.4 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 116 months (9.7
years), and the weighted average remaining lease term of CyrusOne’s
portfolio is 52 months (taking into consideration the impact of the
backlog). Recurring rent churn percentage6 for the first quarter
was 1.8%, compared to 1.0% for the same period in 2020.
Portfolio Development and Percentage CSF Leased
In the first quarter, the Company completed construction on
78,000 CSF and 14 MW of power capacity in the New York Metro area
and Frankfurt. Percentage CSF leased7 as of the end of the first
quarter was 85% for stabilized properties8 and 82% overall. In
addition, the Company has development projects underway in
Frankfurt, Dublin, Paris, London, Northern Virginia, Phoenix, the
New York Metro area, Cincinnati, and San Antonio that are expected
to add approximately 380,000 CSF and 100 MW of power capacity plus
279,000 square feet of powered shell.
Balance Sheet and Liquidity
As of March 31, 2021, the Company had gross asset value9
totaling approximately $8.8 billion, an increase of approximately
13% over gross asset value as of March 31, 2020. CyrusOne had $3.37
billion of long-term debt10, $241 million of cash and cash
equivalents, and approximately $1.01 billion available under its
unsecured revolving credit facility as of March 31, 2021. Net
debt10 was $3.16 billion as of March 31, 2021, representing
approximately 28% of the Company's total enterprise value as of
March 31, 2021 of $11.5 billion. This represented approximately
4.9x 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 $1.63
billion as of March 31, 2021.
During the first 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 pay down a portion of
amounts outstanding on the Company’s unsecured revolving credit
facility. The Company has approximately $385 million in remaining
available forward equity (no portion of these forward sale
agreements has been settled as of April 28, 2021). As of March 31,
2021, there was approximately $151 million in remaining
availability under the ATM equity program.
Dividend
On February 17, 2021, the Company announced a dividend of $0.51
per share of common stock for the first quarter of 2021. The
dividend was paid on April 9, 2021, to stockholders of record at
the close of business on March 26, 2021.
Additionally, today the Company is announcing a dividend of
$0.51 per share of common stock for the second quarter of 2021. The
dividend will be paid on July 9, 2021, to stockholders of record at
the close of business on June 25, 2021.
Guidance
CyrusOne is updating its guidance for full year 2021, increasing
the lower and upper ends of its guidance range for Total Revenue
and Metered Power Reimbursements and reaffirming the other guidance
ranges. 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
$1,105 - 1,145 million
$1,135 - 1,175 million
Lease and Other Revenues from
Customers
$920 - 950 million
$920 - 950 million
Metered Power Reimbursements
$185 - 195 million
$215 - 225 million
Adjusted EBITDA
$570 - 590 million
$570 - 590 million
Normalized FFO per diluted common
share
$3.90 - 4.00
$3.90 - 4.00
Capital Expenditures
$925 - 1,025 million
$925 - 1,025 million
Development(1)
$905 - 985 million
$905 - 985 million
Recurring
$20 - 40 million
$20 - 40 million
(1)Development capital
expenditures include the acquisition of land for future
development.
Upcoming Conferences and Events (All Virtual)
- RBC Capital Markets Global Datacenter, Cloud and Broadband
Infrastructure Conference on May 25
- NAREIT’s REITweek Investor Conference on June 8-10
- CyrusOne Investor Meeting on June 16
Conference Call Details
CyrusOne will host a conference call on April 29, 2021, at 11:00
AM Eastern Time (10:00 AM Central Time) to discuss its results for
the first 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 April 29, 2021, through May 13,
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 10153912.
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 120.5 million for the first
quarter of 2021 and 115.1 million for the first 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 (gain) on asset disposals, Foreign currency and
derivative gains, net, Other expense 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 (gain) 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; New accounting standards and regulatory
compliance and the related system implementation costs; Gain on
marketable equity investment; Foreign currency and derivative
losses (gains), net; Other expense (income); and other items as
appropriate. Other companies may not calculate Adjusted EBITDA in
the same manner. Accordingly, the Company’s Adjusted EBITDA as
presented may not be comparable to others.
4We use funds from operations ("FFO") and normalized funds from
operations ("Normalized FFO"), which are non-GAAP financial
measures commonly used in the REIT industry, as supplemental
performance measures. We use FFO and Normalized FFO as supplemental
performance measures because, when compared period over period,
they capture trends in occupancy rates, rental rates and operating
costs. We also believe that, as widely recognized measures of the
performance of REITs, FFO and Normalized FFO are used by investors
as a basis to evaluate REITs.
We calculate FFO as Net income (loss) computed in accordance
with GAAP before Real estate depreciation and amortization and
Impairment losses and loss (gain) 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.
- 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
2850 N. Harwood Street, Ste. 2200
Bruce W. Duncan, President & Chief
Executive Officer
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
Evercore ISI
John Belton, CFA
(212) 446-5656
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
Mizuho Securities
Omotayo Okusanya, CFA
(646) 949-9672
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
March 31,
December 31,
March 31,
Growth %
2021
2020
2020
Yr/Yr
Revenue
$
298.6
$
268.4
$
245.9
21%
Net operating income
162.8
158.1
153.3
6%
Net income
18.2
19.0
14.7
24%
Funds from Operations ("FFO") - Nareit
defined
137.7
135.1
120.4
14%
Normalized Funds from Operations
("Normalized FFO")
120.2
114.3
111.8
8%
Weighted average number of common shares
outstanding - diluted for Normalized FFO
120.5
120.6
115.1
5%
Net income per share - basic
$
0.15
$
0.15
$
0.13
15%
Net income per share - diluted
$
0.15
$
0.15
$
0.13
15%
Normalized FFO per diluted common
share
$
1.00
$
0.94
$
0.97
3%
Adjusted EBITDA
$
140.3
$
135.9
$
132.2
6%
Adjusted EBITDA as a % of Revenue
47.0
%
50.6
%
53.8
%
(6.8) pts
As of
March 31,
December 31,
March 31,
Growth %
2021
2020
2020
Yr/Yr
Balance Sheet Data
Gross investment in real estate
$
7,166.0
$
7,033.4
$
6,260.9
14%
Accumulated depreciation
(1,867.5
)
(1,767.9
)
(1,469.5
)
27%
Total investment in real estate, net
5,298.5
5,265.5
4,791.4
11%
Cash and cash equivalents
240.9
271.4
57.3
n/m
Market value of common equity
8,298.1
8,810.4
7,102.1
17%
Long-term debt
3,372.7
3,446.1
3,084.0
9%
Net debt
3,160.4
3,203.8
3,056.1
3%
Total enterprise value
11,458.5
12,014.2
10,158.2
13%
Net debt to LQA Adjusted EBITDA(a)
4.9x
5.0x
5.4x
(0.5)x
Dividend Activity
Dividends per share
$
0.51
$
0.51
$
0.50
2%
Portfolio Statistics
Data centers
53
53
48
10%
Stabilized CSF (000)
4,422
4,398
4,035
10%
Stabilized CSF % leased
85
%
87
%
88
%
(3) pts
Total CSF (000)
4,743
4,665
4,215
13%
Total CSF % leased
82
%
84
%
86
%
(4) pts
Total GSF (000)
8,139
8,038
7,243
12%
(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
Ended March 31,
Change
2021
2020
$
%
Revenue(a)
$
298.6
$
245.9
$
52.7
21
%
Operating expenses:
Property operating expenses
135.8
92.6
43.2
47
%
Sales and marketing
3.8
4.7
(0.9
)
(19
)
%
General and administrative
23.0
26.9
(3.9
)
(14
)
%
Depreciation and amortization
121.4
108.1
13.3
12
%
Transaction, acquisition, integration and
other related expenses
0.1
0.5
(0.4
)
(80
)
%
Impairment losses and loss (gain) on asset
disposals
0.5
(0.1
)
0.6
n/m
Total operating expenses
284.6
232.7
232.7
22
%
Operating income
14.0
13.2
(180.0
)
6
%
Interest expense, net
(15.1
)
(16.0
)
0.9
(6
)
%
Gain on marketable equity investment
2.4
14.7
(12.3
)
(84
)
%
Loss on early extinguishment of debt
—
(3.4
)
3.4
(100
)
%
Foreign currency and derivative gains,
net
15.4
5.1
10.3
n/m
Other expense
(0.1
)
(0.1
)
—
—
%
Net income before income taxes
16.6
13.5
(177.7
)
23
%
Income tax benefit
1.6
1.2
0.4
33
%
Net income
$
18.2
$
14.7
$
3.5
24
%
Net income per share - basic
$
0.15
$
0.13
$
0.02
15
%
Net income per share - diluted
$
0.15
$
0.13
$
0.02
15
%
(a)
Revenue includes metered power
reimbursements of $73.1 million and $34.8 million for the three
months ended March 31, 2021 and 2020, respectively.
CyrusOne Inc.
Condensed Consolidated Balance
Sheets
(Dollars in millions)
(Unaudited)
March 31,
December 31,
Change
2021
2020
$
%
Assets
Investment in real estate:
Land
$
207.3
$
208.8
$
(1.5
)
(1
)
%
Buildings and improvements
2,046.6
2,035.2
11.4
1
%
Equipment
3,596.5
3,538.9
57.6
2
%
Gross operating real estate
5,850.4
5,782.9
67.5
1
%
Less accumulated depreciation
(1,867.5
)
(1,767.9
)
(99.6
)
6
%
Net operating real estate
3,982.9
4,015.0
(32.1
)
(1
)
%
Construction in progress, including land
under development
1,053.3
982.2
71.1
7
%
Land held for future development
262.3
268.3
(6.0
)
(2
)
%
Total investment in real estate, net
5,298.5
5,265.5
33.0
1
%
Cash and cash equivalents
240.9
271.4
(30.5
)
(11
)
%
Rent and other receivables (net of
allowance for doubtful accounts of $2.1 and $3.5 as of March 31,
2021 and December 31, 2020, respectively)
389.8
334.2
55.6
17
%
Restricted cash
1.4
1.5
(0.1
)
(7
)
%
Operating lease right-of-use assets,
net
239.7
211.4
28.3
13
%
Equity investments
22.9
67.1
(44.2
)
(66
)
%
Goodwill
455.1
455.1
—
—
%
Intangible assets (net of accumulated
amortization of $257.2 and $249.3 as of March 31, 2021 and December
31, 2020, respectively)
149.2
157.8
(8.6
)
(5
)
%
Other assets
114.3
133.4
(19.1
)
(14
)
%
Total assets
$
6,911.8
$
6,897.4
$
14.4
—
%
Liabilities and equity
Debt
$
3,337.4
$
3,409.0
$
(71.6
)
(2
)
%
Finance lease liabilities
28.6
29.1
(0.5
)
(2
)
%
Operating lease liabilities
277.9
249.1
28.8
12
%
Construction costs payable
137.5
133.0
4.5
3
%
Accounts payable and accrued expenses
168.9
151.3
17.6
12
%
Dividends payable
62.0
63.3
(1.3
)
(2
)
%
Deferred revenue and prepaid rents
183.2
174.1
9.1
5
%
Deferred tax liability
48.2
53.0
(4.8
)
(9
)
%
Other liabilities
53.3
77.3
(24.0
)
(31
)
%
Total liabilities
4,297.0
4,339.2
(42.2
)
(1
)
%
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 122,535,975 and 120,442,521 shares issued and
outstanding at March 31, 2021 and December 31, 2020,
respectively
1.2
1.2
—
—
%
Additional paid in capital
3,628.6
3,537.3
91.3
3
%
Accumulated deficit
(1,010.2
)
(966.6
)
(43.6
)
5
%
Accumulated other comprehensive loss
(4.8
)
(13.7
)
8.9
(65
)
%
Total stockholders’ equity
2,614.8
2,558.2
56.6
2
%
Total liabilities and equity
$
6,911.8
$
6,897.4
$
14.4
—
%
CyrusOne Inc.
Condensed Consolidated
Statements of Operations
(Dollars in millions, except
per share amounts)
(Unaudited)
For the three months ended:
March 31,
December 31,
September 30,
June 30,
March 31,
2021
2020
2020
2020
2020
Revenue(a)
$
298.6
$
268.4
$
262.8
$
256.4
$
245.9
Operating expenses:
Property operating expenses
135.8
110.3
109.7
99.0
92.6
Sales and marketing
3.8
5.3
4.5
3.8
4.7
General and administrative
23.0
22.4
29.7
20.3
26.9
Depreciation and amortization
121.4
118.5
113.1
109.7
108.1
Transaction, acquisition, integration and
other related expenses
0.1
1.5
1.6
0.1
0.5
Impairment losses and loss (gain) on asset
disposals
0.5
—
8.8
2.4
(0.1
)
Total operating expenses
284.6
258.0
267.4
235.3
232.7
Operating income (loss)
14.0
10.4
(4.6
)
21.1
13.2
Interest expense, net
(15.1
)
(14.5
)
(13.3
)
(13.9
)
(16.0
)
Gain on marketable equity investment
2.4
19.7
4.7
50.4
14.7
Loss on early extinguishment of debt
—
—
(3.1
)
—
(3.4
)
Foreign currency and derivative gains
(losses), net
15.4
4.1
(22.9
)
(13.9
)
5.1
Other (expense) income
(0.1
)
—
—
0.1
(0.1
)
Net income (loss) before income
taxes
16.6
19.7
(39.2
)
43.8
13.5
Income tax benefit (expense)
1.6
(0.7
)
1.9
1.2
1.2
Net income (loss)
$
18.2
$
19.0
$
(37.3
)
$
45.0
$
14.7
Net income (loss) per share -
basic
$
0.15
$
0.15
$
(0.32
)
$
0.39
$
0.13
Net income (loss) per share -
diluted
$
0.15
$
0.15
$
(0.32
)
$
0.39
$
0.13
(a)
Revenue includes metered power
reimbursements of $73.1 million, $44.9 million, $44.6 million,
$37.1 million and $34.8 million for the three months ended March
31, 2021, December 31, 2020, September 30, 2020, June 30, 2020 and
March 31, 2020, respectively.
CyrusOne Inc.
Condensed Consolidated Balance
Sheets
(Dollars in millions)
(Unaudited)
March 31,
December 31,
September 30,
June 30,
March 31,
2021
2020
2020
2020
2020
Assets
Investment in real estate:
Land
$
207.3
$
208.8
$
181.2
$
175.5
$
172.2
Buildings and improvements
2,046.6
2,035.2
1,918.4
1,857.9
1,786.3
Equipment
3,596.5
3,538.9
3,341.7
3,229.5
3,106.4
Gross operating real estate
5,850.4
5,782.9
5,441.3
5,262.9
5,064.9
Less accumulated depreciation
(1,867.5
)
(1,767.9
)
(1,663.4
)
(1,562.7
)
(1,469.5
)
Net operating real estate
3,982.9
4,015.0
3,777.9
3,700.2
3,595.4
Construction in progress, including land
under development
1,053.3
982.2
1,085.9
1,024.8
990.6
Land held for future development
262.3
268.3
264.4
217.2
205.4
Total investment in real estate, net
5,298.5
5,265.5
5,128.2
4,942.2
4,791.4
Cash and cash equivalents
240.9
271.4
156.5
70.7
57.3
Rent and other receivables, net
389.8
334.2
306.9
307.0
305.3
Restricted cash
1.4
1.5
1.4
1.3
1.3
Operating lease right-of-use assets,
net
239.7
211.4
206.9
204.7
208.6
Equity investments
22.9
67.1
178.1
184.9
153.1
Goodwill
455.1
455.1
455.1
455.1
455.1
Intangible assets, net
149.2
157.8
166.4
174.9
184.5
Other assets
114.3
133.4
112.8
127.3
121.9
Total assets
$
6,911.8
$
6,897.4
$
6,712.3
$
6,468.1
$
6,278.5
Liabilities and equity
Debt
$
3,337.4
$
3,409.0
$
3,197.8
$
3,156.9
$
3,047.0
Finance lease liabilities
28.6
29.1
29.2
28.8
29.4
Operating lease liabilities
277.9
249.1
244.3
240.5
243.0
Construction costs payable
137.5
133.0
168.2
155.7
183.4
Accounts payable and accrued expenses
168.9
151.3
145.3
127.0
121.0
Dividends payable
62.0
63.3
63.1
59.7
58.7
Deferred revenue and prepaid rents
183.2
174.1
166.8
166.2
167.3
Deferred tax liability
48.2
53.0
55.4
55.8
57.0
Other liabilities
53.3
77.3
37.8
16.8
7.9
Total liabilities
4,297.0
4,339.2
4,107.9
4,007.4
3,914.7
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 122,535,975 and 120,442,521 shares issued and
outstanding at March 31, 2021 and December 31, 2020,
respectively
1.2
1.2
1.2
1.2
1.2
Additional paid in capital
3,628.6
3,537.3
3,532.9
3,305.9
3,199.9
Accumulated deficit
(1,010.2
)
(966.6
)
(923.9
)
(824.7
)
(811.0
)
Accumulated other comprehensive loss
(4.8
)
(13.7
)
(5.8
)
(21.7
)
(26.3
)
Total stockholders' equity
2,614.8
2,558.2
2,604.4
2,460.7
2,363.8
Total liabilities and equity
$
6,911.8
$
6,897.4
$
6,712.3
$
6,468.1
$
6,278.5
CyrusOne Inc.
Condensed Consolidated
Statements of Cash Flows
(Dollars in millions)
(Unaudited)
Three Months Ended March 31,
2021
Three Months Ended March 31,
2020
Cash flows from operating activities:
Net income
$
18.2
$
14.7
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
121.4
108.1
Provision for bad debt expense
(1.1
)
(0.1
)
Gain on marketable equity investment
(2.4
)
(14.7
)
Foreign currency and derivative gains,
net
(15.4
)
(5.1
)
Proceeds from swap terminations
—
2.9
Impairment losses and loss (gain) on asset
disposals
0.5
(0.1
)
Loss on early extinguishment of debt
—
3.4
Interest expense amortization, net
1.6
2.0
Stock-based compensation expense
4.4
3.7
Deferred income tax benefit
(2.6
)
(2.0
)
Operating lease cost
5.2
6.2
Other (income) expense
(0.1
)
0.3
Change in operating assets and
liabilities:
Rent and other receivables, net and other
assets
(43.4
)
(29.4
)
Accounts payable and accrued expenses
18.4
(1.2
)
Deferred revenue and prepaid rents
8.5
3.2
Operating lease liabilities
(6.5
)
(5.6
)
Net cash provided by operating
activities
106.7
86.3
Cash flows from investing activities:
Investments in real estate
(175.4
)
(196.5
)
Proceeds from sale of equity
investments
46.6
—
Equity investments
—
(3.3
)
Proceeds from the sale of real estate
assets
4.4
—
Net cash used in investing
activities
(124.4
)
(199.8
)
Cash flows from financing activities:
Issuance of common stock, net
95.8
0.6
Dividends paid
(63.0
)
(58.4
)
Proceeds from revolving credit
facility
90.3
244.4
Repayments of revolving credit
facility
(124.2
)
(623.1
)
Proceeds from Euro bond
—
550.6
Proceeds from unsecured term loan
—
1,100.0
Repayments of unsecured term loan
—
(1,100.0
)
Payment of deferred financing costs
—
(13.6
)
Payments on finance lease liabilities
(0.7
)
(0.7
)
Tax payment upon exercise of equity
awards
(8.9
)
(6.3
)
Net cash (used in) provided by
financing activities
(10.7
)
93.5
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(2.2
)
0.9
Net decrease in cash, cash equivalents and
restricted cash
(30.6
)
(19.1
)
Cash, cash equivalents and restricted cash
at beginning of period
272.9
77.7
Cash, cash equivalents and restricted
cash at end of period
$
242.3
$
58.6
Supplemental disclosure of cash flow
information:
Cash paid for interest, including amounts
capitalized of $4.9 million and $6.0 million in 2021 and 2020,
respectively
$
12.8
$
8.3
Non-cash investing and financing
activities:
Construction costs payable
137.5
183.4
Dividends payable
62.0
58.7
CyrusOne Inc.
Reconciliation of Net Income
to Net Operating Income
(Dollars in millions)
(Unaudited)
Three Months Ended
March 31,
Change
2021
2020
$
%
Net income
$
18.2
$
14.7
$
3.5
24
%
Sales and marketing expenses
3.8
4.7
(0.9
)
(19
)
%
General and administrative expenses
23.0
26.9
(3.9
)
(14
)
%
Depreciation and amortization expenses
121.4
108.1
13.3
12
%
Transaction, acquisition, integration and
other related expenses
0.1
0.5
(0.4
)
(80
)
%
Interest expense, net
15.1
16.0
(0.9
)
(6
)
%
Gain on marketable equity investment
(2.4
)
(14.7
)
12.3
(84
)
%
Loss on early extinguishment of debt
—
3.4
(3.4
)
(100
)
%
Impairment losses and loss (gain) on asset
disposals
0.5
(0.1
)
0.6
n/m
Foreign currency and derivative gains,
net
(15.4
)
(5.1
)
(10.3
)
n/m
Other expense
0.1
0.1
—
—
%
Income tax benefit
(1.6
)
(1.2
)
(0.4
)
33
%
Net Operating Income
$
162.8
$
153.3
$
9.5
6
%
CyrusOne Inc.
Net Operating Income and
Reconciliation of Net Income (Loss) to Adjusted EBITDA
(Dollars in millions)
(Unaudited)
Three Months Ended
Three Months Ended
March 31,
Change
March 31,
December 31,
September 30,
June 30,
March 31,
2021
2020
$
%
2021
2020
2020
2020
2020
Net Operating Income
Revenue
$
298.6
$
245.9
$
52.7
21%
$
298.6
$
268.4
$
262.8
$
256.4
$
245.9
Property operating expenses
135.8
92.6
43.2
47%
135.8
110.3
109.7
99.0
92.6
Net Operating Income (NOI)
$
162.8
$
153.3
$
9.5
6%
$
162.8
$
158.1
$
153.1
$
157.4
$
153.3
NOI as a % of Revenue
54.5
%
62.3
%
54.5
%
58.9
%
58.3
%
61.4
%
62.3
%
Reconciliation of Net Income (Loss) to
Adjusted EBITDA:
Net income (loss)
$
18.2
$
14.7
$
3.5
24%
$
18.2
$
19.0
$
(37.3
)
$
45.0
$
14.7
Interest expense, net
15.1
16.0
(0.9
)
(6)%
15.1
14.5
13.3
13.9
16.0
Income tax (benefit) expense
(1.6
)
(1.2
)
(0.4
)
33%
(1.6
)
0.7
(1.9
)
(1.2
)
(1.2
)
Depreciation and amortization expenses
121.4
108.1
13.3
12%
121.4
118.5
113.1
109.7
108.1
Impairment losses and loss (gain) on asset
disposals
0.5
(0.1
)
0.6
n/m
0.5
—
8.8
2.4
(0.1
)
EBITDA (Nareit definition)(a)
$
153.6
$
137.5
$
16.1
12%
$
153.6
$
152.7
$
96.0
$
169.8
$
137.5
Transaction, acquisition, integration and
other related expenses
0.1
0.5
(0.4
)
(80)%
0.1
1.5
1.6
0.1
0.5
Legal claim costs
—
0.1
(0.1
)
(100)%
—
—
0.1
0.1
0.1
Stock-based compensation expense
4.4
3.5
0.9
26%
4.4
4.4
4.2
3.4
3.5
Cash severance and management transition
costs
(0.1
)
6.8
(6.9
)
n/m
(0.1
)
0.9
6.4
—
6.8
Severance-related stock compensation
costs
—
0.1
(0.1
)
(100)%
—
0.2
2.6
—
0.1
Loss on early extinguishment of debt
—
3.4
(3.4
)
(100)%
—
—
3.1
—
3.4
Gain on marketable equity investment
(2.4
)
(14.7
)
12.3
(84)%
(2.4
)
(19.7
)
(4.7
)
(50.4
)
(14.7
)
Foreign currency and derivative (gains)
losses, net
(15.4
)
(5.1
)
(10.3
)
n/m
(15.4
)
(4.1
)
22.9
13.9
(5.1
)
Other expense (income)
0.1
0.1
—
—%
0.1
—
—
(0.1
)
0.1
Adjusted EBITDA
$
140.3
$
132.2
$
8.1
6%
$
140.3
$
135.9
$
132.2
$
136.8
$
132.2
Adjusted EBITDA as a % of Revenue
47.0
%
53.8
%
47.0
%
50.6
%
50.3
%
53.4
%
53.8
%
(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)
Three Months Ended
Three Months Ended
March 31,
Change
March 31,
December 31,
September 30,
June 30,
March 31,
2021
2020
$
%
2021
2020
2020
2020
2020
Reconciliation of Net Income (Loss) to
FFO and Normalized FFO:
Net income (loss)
$
18.2
$
14.7
$
3.5
24
%
$
18.2
$
19.0
$
(37.3
)
$
45.0
$
14.7
Real estate depreciation and
amortization
119.0
105.8
13.2
12
%
119.0
116.1
110.7
107.5
105.8
Impairment losses and loss (gain) on asset
disposals
0.5
(0.1
)
0.6
n/m
0.5
—
8.8
2.4
(0.1
)
Funds from Operations ("FFO") - Nareit
defined
$
137.7
$
120.4
$
17.3
14
%
$
137.7
$
135.1
$
82.2
$
154.9
$
120.4
Loss on early extinguishment of debt
—
3.4
(3.4
)
(100
)
%
—
—
3.1
—
3.4
Gain on marketable equity investment
(2.4
)
(14.7
)
12.3
(84
)
%
(2.4
)
(19.7
)
(4.7
)
(50.4
)
(14.7
)
Foreign currency and derivative (gains)
losses, net
(15.4
)
(5.1
)
(10.3
)
n/m
(15.4
)
(4.1
)
22.9
13.9
(5.1
)
Amortization of tradenames
0.3
0.3
—
—
%
0.3
0.4
0.2
0.3
0.3
Transaction, acquisition, integration and
other related expenses
0.1
0.5
(0.4
)
(80
)
%
0.1
1.5
1.6
0.1
0.5
Cash severance and management transition
costs
(0.1
)
6.8
(6.9
)
n/m
(0.1
)
0.9
6.4
—
6.8
Severance-related stock compensation
costs
—
0.1
(0.1
)
(100
)
%
—
0.2
2.6
—
0.1
Legal claim costs
—
0.1
(0.1
)
(100
)
%
—
—
0.1
0.1
0.1
Normalized Funds from Operations
(Normalized FFO)
$
120.2
$
111.8
$
8.4
8
%
$
120.2
$
114.3
$
114.4
$
118.9
$
111.8
Normalized FFO per diluted common
share
$
1.00
$
0.97
$
0.03
3
%
$
1.00
$
0.94
$
0.96
$
1.03
$
0.97
Weighted average diluted common shares
outstanding
120.5
115.1
5.4
5
%
120.5
120.6
119.2
115.7
115.1
Additional Information:
Amortization of deferred financing costs
and bond premium / discount
1.6
2.0
(0.4
)
(20
)
%
1.6
1.6
1.6
1.6
2.0
Stock-based compensation expense
4.4
3.5
0.9
26
%
4.4
4.4
4.2
3.4
3.5
Non-real estate depreciation and
amortization
2.2
2.0
0.2
10
%
2.2
2.0
2.1
2.0
2.0
Straight line rent adjustments(a)
1.2
1.7
(0.5
)
(29
)
%
1.2
(8.0
)
(6.6
)
(2.1
)
1.7
Straight line rental expense
adjustments
0.2
—
0.2
n/m
0.2
0.1
(0.1
)
(0.2
)
(0.3
)
Above and below market rent
amortization
(0.1
)
(0.1
)
—
—
%
(0.1
)
(0.1
)
(0.1
)
(0.1
)
(0.1
)
Deferred tax (benefit) expense
(2.6
)
(2.0
)
(0.6
)
30
%
(2.6
)
(0.2
)
(2.7
)
(2.2
)
(2.0
)
Deferred revenue, primarily installation
revenue(b)
8.8
(2.2
)
11.0
n/m
8.8
2.3
0.2
2.3
(2.2
)
Leasing commissions
(3.9
)
(2.4
)
(1.5
)
63
%
(3.9
)
(4.3
)
(5.3
)
(3.2
)
(2.4
)
Recurring capital expenditures
(2.6
)
(3.5
)
0.9
(26
)
%
(2.6
)
(0.8
)
(3.1
)
(6.4
)
(3.5
)
(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 March 31, 2021)
(dollars in millions)
Shares or Equivalents
Outstanding
Market Price
as of March 31, 2021
Market Value Equivalents (in
millions)
Common shares
122,535,975
$
67.72
$
8,298.1
Net Debt
3,160.4
Total Enterprise Value (TEV)
$
11,458.5
Reconciliation of
Net Debt
March 31,
December 31,
March 31,
(dollars in millions)
2021
2020
2020
Long-term debt(a)
$
3,372.7
$
3,446.1
$
3,084.0
Finance lease liabilities
28.6
29.1
29.4
Less:
Cash and cash equivalents
(240.9
)
(271.4
)
(57.3
)
Net Debt
$
3,160.4
$
3,203.8
$
3,056.1
(a)
Excludes adjustment for deferred
financing costs and unamortized bond discounts.
Interest
Summary
Three Months Ended
March 31,
December 31,
March 31,
% Change
(dollars in millions)
2021
2020
2020
Yr/Yr
Interest expense and fees, net
$
18.4
$
18.5
$
20.0
(8
)%
Amortization of deferred financing costs
and bond premium / discount
1.6
1.6
2.0
(20
)%
Capitalized interest
(4.9
)
(5.6
)
(6.0
)
(18
)%
Total interest expense, net
$
15.1
$
14.5
$
16.0
(6
)%
CyrusOne Inc.
Debt Schedule and Debt
Covenants
(Unaudited)
Debt
Schedule (as of March 31, 2021)
(dollars in millions)
Long-term debt:
Amount
Interest
Rate
Maturity
Date
Revolving credit facility - EUR(a)(b)
351.8
EURIBOR + 100 bps(c)
March 2025(d)
Revolving credit facility - GBP(a)(e)
34.5
GBP LIBOR + 100 bps(f)
March 2025(d)
Term loan(g)
800.0
USD LIBOR + 120 bps(h)
March 2025(i)
2.900% USD senior notes due 2024
600.0
2.900%
November 2024
1.450% EUR senior notes due 2027(j)
586.4
1.450%
January 2027
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(k)
$
3,372.7
2.08%(l)
Weighted average term of
debt(d)(i):
5.7
years
(a)
Revolving credit facility
includes 0.20% facility fee on entire revolving credit facility
commitment of $1.4 billion.
(b)
Amount outstanding is
USD-equivalent of €300 million.
(c)
Interest rate as of March 31,
2021: 1.00%.
(d)
Assuming exercise of 12-month
extension option.
(e)
Amount outstanding is
USD-equivalent of £25 million.
(f)
Interest rate as of March 31,
2021: 1.06%.
(g)
$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.
(h)
Interest rate as of March 31,
2021: 1.31%; weighted average interest rate pursuant to swaps:
1.37%.
(i)
Assumes exercise of two 12-month
extension options on $100 million tranche.
(j)
Amount outstanding is
USD-equivalent of €500 million.
(k)
Excludes adjustment for deferred
financing costs and unamortized bond discounts.
(l)
Weighted average interest rate
calculated using interest rate on swapped amount.
Debt Covenants -
Senior Notes (as of March 31, 2021)
Ratios
Requirement
March 31, 2021
Total Outstanding Indebtedness to Total
Assets
≤ 60%
40%
Secured Indebtedness to Total Assets
≤ 40%
0%
Consolidated EBITDA to Interest
Expense
≥ 1.50x
7.02x
Total Unencumbered Assets to Unsecured
Indebtedness
≥ 150%
249%
CyrusOne Inc.
Colocation Square Footage
(CSF) and CSF Leased
(Unaudited)
As of March 31, 2021
As of December 31,
2020
As of March 31, 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
1,166
93
%
1,166
93
%
1,113
96
%
Dallas
621
66
%
621
70
%
621
71
%
Phoenix
581
97
%
581
95
%
509
100
%
San Antonio
434
97
%
434
97
%
300
100
%
Cincinnati
402
68
%
402
71
%
402
75
%
New York Metro
345
66
%
290
79
%
245
73
%
Houston
308
57
%
308
62
%
308
63
%
Chicago
203
80
%
203
79
%
203
78
%
Austin
106
77
%
106
76
%
106
78
%
Raleigh-Durham
94
94
%
94
94
%
94
96
%
Council Bluffs, Iowa
42
15
%
42
15
%
—
—
%
Total - Domestic
4,300
81
%
4,246
83
%
3,901
85
%
Frankfurt
252
90
%
229
99
%
144
99
%
London
148
83
%
148
83
%
128
81
%
Amsterdam
39
100
%
39
100
%
39
100
%
Singapore
3
20
%
3
20
%
3
20
%
Total - International
443
88
%
419
93
%
314
91
%
Total - Portfolio
4,743
82
%
4,665
84
%
4,215
86
%
Stabilized Properties(c)
4,422
85
%
4,398
87
%
4,035
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
$1,105 - 1,145 million
$1,135 - 1,175 million
Lease and Other Revenues from
Customers
$920 - 950 million
$920 - 950 million
Metered Power Reimbursements
$185 - 195 million
$215 - 225 million
Adjusted EBITDA
$570 - 590 million
$570 - 590 million
Normalized FFO per diluted common
share
$3.90 - 4.00
$3.90 - 4.00
Capital Expenditures
$925 - 1,025 million
$925 - 1,025 million
Development(1)
$905 - 985 million
$905 - 985 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 range for Total Revenue
and Metered Power Reimbursements and reaffirming the other guidance
ranges. 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 March 31, 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
$
93,984
428
73
%
73
%
83
45
%
133
644
—
60
Northern Virginia - Sterling V
Northern Virginia
70,081
383
99
%
99
%
11
100
%
145
539
231
69
Northern Virginia - Sterling VI
Northern Virginia
58,912
272
100
%
100
%
35
—
%
—
307
—
57
Frankfurt II
Frankfurt
39,452
90
100
%
100
%
9
100
%
72
171
10
35
Northern Virginia - Sterling II
Northern Virginia
37,457
159
100
%
100
%
9
100
%
55
223
—
30
Somerset I
New York Metro
37,343
153
85
%
86
%
27
99
%
149
329
28
23
Chicago - Aurora I
Chicago
33,069
113
98
%
98
%
34
100
%
223
371
27
52
San Antonio III
San Antonio
32,444
132
100
%
100
%
9
100
%
43
184
—
24
Phoenix - Chandler VI
Phoenix
27,761
148
100
%
100
%
6
100
%
32
187
169
24
Dallas - Lewisville*
Dallas
27,677
114
74
%
74
%
11
57
%
54
180
—
21
Totowa - Madison**
New York Metro
26,743
51
86
%
86
%
22
86
%
59
133
—
12
Cincinnati - North Cincinnati
Cincinnati
26,024
65
99
%
99
%
45
79
%
53
163
62
12
Houston - Houston West I
Houston
25,451
112
61
%
61
%
11
100
%
37
161
3
32
Frankfurt I
Frankfurt
24,122
53
97
%
97
%
8
91
%
57
118
—
18
Cincinnati - 7th Street***
Cincinnati
23,512
197
46
%
46
%
6
61
%
175
378
46
17
Austin III
Austin
23,089
62
68
%
68
%
15
81
%
21
98
67
11
Phoenix - Chandler I
Phoenix
20,907
74
99
%
100
%
35
12
%
39
147
31
12
Houston - Houston West II
Houston
20,722
80
71
%
71
%
4
97
%
55
139
11
12
Phoenix - Chandler II
Phoenix
20,410
74
100
%
100
%
6
53
%
26
105
—
12
Raleigh-Durham I
Raleigh-Durham
20,018
94
88
%
94
%
16
95
%
82
192
235
14
Frankfurt III
Frankfurt
19,843
109
79
%
100
%
16
82
%
100
225
—
40
Phoenix - Chandler III
Phoenix
19,278
68
100
%
100
%
2
—
%
30
101
—
12
San Antonio I
San Antonio
19,044
44
99
%
99
%
6
83
%
46
96
11
12
Northern Virginia - Sterling III
Northern Virginia
18,950
79
100
%
100
%
7
100
%
34
120
—
15
Wappingers Falls I**
New York Metro
18,493
37
62
%
62
%
20
86
%
15
72
—
7
Northern Virginia - Sterling IV
Northern Virginia
17,893
81
100
%
100
%
7
100
%
34
122
—
15
San Antonio II
San Antonio
16,079
64
100
%
100
%
11
100
%
41
117
—
12
Phoenix - Chandler V
Phoenix
15,959
72
100
%
100
%
1
95
%
16
89
13
12
Northern Virginia - Sterling I
Northern Virginia
15,706
78
91
%
91
%
6
63
%
49
132
—
12
Austin II
Austin
15,413
44
90
%
90
%
2
100
%
22
68
—
7
London II*
London
14,599
64
100
%
100
%
10
100
%
93
166
4
21
London I*
London
13,917
30
100
%
100
%
12
56
%
58
100
9
12
Phoenix - Chandler IV
Phoenix
12,323
73
100
%
100
%
3
100
%
27
103
—
12
San Antonio IV
San Antonio
12,055
60
100
%
100
%
12
100
%
27
99
—
12
Florence
Cincinnati
10,871
53
99
%
99
%
47
87
%
40
140
—
9
Houston - Galleria
Houston
9,502
63
38
%
38
%
23
21
%
25
112
—
11
Cincinnati - Hamilton*
Cincinnati
9,116
47
65
%
65
%
1
100
%
35
83
—
9
San Antonio V
San Antonio
8,109
134
65
%
90
%
7
100
%
38
179
1
15
Houston - Houston West III
Houston
7,900
53
49
%
49
%
10
13
%
32
95
209
6
Chicago - Aurora II (DH #1)
Chicago
7,591
77
56
%
57
%
45
1
%
14
136
272
16
London - Great Bridgewater**
London
7,365
10
91
%
91
%
—
—
%
1
11
—
1
London III*
London
6,730
20
100
%
100
%
2
100
%
45
67
1
6
Norwalk I**
New York Metro
5,429
13
98
%
98
%
10
65
%
41
63
83
3
Stamford - Riverbend**
New York Metro
5,423
20
23
%
23
%
—
—
%
8
28
—
5
Cincinnati - Mason
Cincinnati
4,778
34
100
%
100
%
26
98
%
17
78
—
4
Amsterdam I
Amsterdam
4,392
39
100
%
100
%
15
100
%
40
94
207
4
Dallas - Allen (DH #1)
Dallas
3,567
79
17
%
20
%
—
—
%
58
137
204
6
Chicago - Lombard
Chicago
2,539
14
62
%
62
%
4
45
%
12
30
29
2
Totowa - Commerce**
New York Metro
802
—
—
%
—
%
20
44
%
6
26
—
—
Cincinnati - Blue Ash*
Cincinnati
493
6
36
%
36
%
7
100
%
2
15
—
1
Singapore - Inter Business Park**
Singapore
373
3
20
%
20
%
—
—
%
—
3
—
1
Stabilized Properties - Total
$
1,013,714
4,422
84
%
85
%
735
66
%
2,515
7,672
1,963
842
CyrusOne Inc.
Data Center Portfolio
As of March 31, 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
$
1,013,714
4,422
84
%
85
%
735
66
%
2,515
7,672
1,963
842
Pre-Stabilized Properties(b)
Northern Virginia - Sterling VIII
Northern Virginia
10,543
61
37
%
37
%
4
—
%
25
90
—
6
Phoenix - Chandler V (DH#2)
Phoenix
3,511
71
45
%
75
%
1
100
%
8
81
—
12
Northern Virginia - Sterling IX
Northern Virginia
2,520
53
27
%
41
%
1
—
%
66
120
72
6
Somerset I (DH #14)
New York Metro
1,904
16
82
%
82
%
—
—
%
—
16
—
2
Council Bluffs I
Iowa
1,406
42
12
%
15
%
14
—
%
18
73
42
5
Somerset I (DH #12 and #13)
New York Metro
—
54
—
%
—
%
9
—
%
—
63
—
5
London II*(DH #3)
London
—
17
—
%
—
%
—
—
%
—
17
—
7
London I*(DH #1)
London
—
8
—
%
—
%
—
—
%
—
8
—
3
All Properties - Total
$
1,033,597
4,743
80
%
82
%
764
63
%
2,632
8,139
2,077
888
*
Indicates properties in which we
hold a leasehold interest in the building shell and land. All data
center infrastructure has been constructed by us and is owned by
us.
**
Indicates properties in which we
hold a leasehold interest in the building shell, land, and all data
center infrastructure.
***
The information provided for the
Cincinnati - 7th Street property includes data for two facilities,
one of which we lease and one of which we own.
(a)
Represents the total square feet
of a building under lease or available for lease based on
engineers' drawings and estimates but does not include space held
for development or space used by CyrusOne.
(b)
Stabilized properties include
data halls that have been in service for at least 24 months or are
at least 85% leased. Pre-stabilized properties include data halls
that have been in service for less than 24 months and are less than
85% leased.
(c)
Represents monthly contractual
rent (defined as cash rent including customer reimbursements for
metered power) under existing customer leases as of March 31, 2021
multiplied by 12. For the month of March 2021, customer
reimbursements were $178.8 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 April 1, 2019 through March 31, 2021, customer
reimbursements under leases with separately metered power
constituted between 14.8% and 19.4% of annualized rent. After
giving effect to abatements, free rent and other straight-line
adjustments, our annualized effective rent as of March 31, 2021 was
$1,027.4 million. Our annualized effective rent was lower than our
annualized rent as of March 31, 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 March
31, 2021 divided by total CSF. Leases signed but that have not
commenced billing as of March 31, 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 March 31, 2021 divided by total Office &
Other space. Leases signed but not commenced as of March 31, 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 March 31, 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
San Antonio V
San Antonio
2Q'21
—
8
—
—
8
6.0
$
15
$10-12
$25-27
Cincinnati - North Cincinnati
Cincinnati
2Q'21
3
—
—
—
3
2.0
—
9-12
9-12
Dublin I
Dublin
2Q'21
76
19
32
78
204
12.0
81
25-42
106-123
London III
London
2Q'21
19
—
—
—
19
6.0
16
15-20
31-36
Northern Virginia - Sterling VIII
Northern Virginia
2Q'21
—
—
—
—
—
6.0
14
6-9
20-23
Paris I(g)
Paris
2Q'21
26
4
15
201
246
6.0
38
14-27
52-65
Norwalk I
New York
2Q'21
4
—
—
—
4
2.0
1
7-8
8-9
Frankfurt III (DH #4)
Frankfurt
3Q'21
15
3
15
—
33
4.0
7
6-8
13-15
Phoenix - Chandler VII
Phoenix
3Q'21
62
10
38
—
110
15.0
—
70-80
70-80
Phoenix - Chandler V
Phoenix
3Q'21
—
—
—
—
—
3.0
—
11-14
11-14
Northern Virginia - Sterling IX
Northern Virginia
3Q'21
102
8
4
—
114
21.0
6
80-94
86-100
Frankfurt IV
Frankfurt
4Q'22
73
11
39
—
122
17.0
2
118-137
120-139
Total
380
62
142
279
864
100.0
$
180
$371-463
$551-643
(a)
Represents GSF at a facility for
which, as of March 31, 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 March 31, 2021. Dublin, Frankfurt and Paris
development costs are EUR-denominated and shown as USD-equivalent
based on an exchange rate of 1.17 as of March 31, 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 March 31, 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% pre-leased, with
development planned in phases through mid-2026 to align with
customer commitments.
Capital Expenditures - Investment in Real Estate(a)
Three Months Ended
(dollars in millions)
March 31, 2021
Capital expenditures - investment in real
estate
$172.8
(a) Excludes recurring capital
expenditures.
CyrusOne Inc.
Land Available for Future
Development (Acres)
As of March 31, 2021
(Unaudited)
As of
Market
March 31, 2021
Amsterdam
8
Austin
22
Chicago
23
Cincinnati
98
Council Bluffs, Iowa
10
Dallas
57
Dublin
15
Frankfurt
2
Houston
20
London
33
Northern Virginia
24
Phoenix
96
Quincy, Washington
48
San Antonio
12
Santa Clara
23
Total Available(a)
490
Book Value of Total Available
$
262.3
million
(a) Does not sum to total due to
rounding.
CyrusOne Inc.
Leasing Statistics - Lease
Signings
As of March 31, 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)
1Q'21
414
156,000
28,493
$2,947
116
Prior 4Q Avg.
414
154,000
25,155
$3,268
88
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
1Q'20
460
289,000
43,586
$4,994
98
(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 $0.3 million in 1Q'20 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 March 31, 2021
(Dollars in thousands)
(Unaudited)
New MRR Signed(a)
2Q'19
3Q'19(b)
4Q'19
1Q'20
2Q'20
3Q'20
4Q'20
1Q'21
Existing Customers
$974
$2,849
$843
$4,756
$2,872
$841
$3,881
$2,827
New Customers
$116
$1,007
$220
$238
$198
$53
$231
$120
Total
$1,090
$3,856
$1,063
$4,994
$3,070
$894
$4,112
$2,947
% from Existing Customers
89%
74%
79%
95%
94%
94%
94%
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 $0.3 million in 1Q'20, $0.2 million in 4Q'19, 2Q'20,
3Q'20, 4Q'20, and 1Q'21, and $0.1 million in 2Q'19 and 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 March 31, 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
$
203,269
19.7
%
89.4
2
Information Technology
11
72,967
7.1
%
23.8
3
Information Technology
5
61,839
6.0
%
34.6
4
Information Technology
5
56,162
5.4
%
40.4
5
Information Technology
6
41,640
4.0
%
38.5
6
Information Technology
9
27,868
2.7
%
39.6
7
Information Technology
3
21,767
2.1
%
32.4
8
Financial Services
1
19,819
1.9
%
120.0
9
Healthcare
2
16,152
1.6
%
78.8
10
Research and Consulting
Services
3
14,968
1.5
%
19.0
11
Information Technology
7
12,039
1.2
%
32.5
12
Financial Services
4
10,900
1.1
%
84.2
13
Financial Services
2
10,755
1.0
%
36.4
14
Information Technology
1
9,752
0.9
%
35.6
15
Telecommunication Services
2
8,692
0.8
%
10.1
16
Telecommunication Services
1
8,604
0.8
%
79.1
17
Financial Services
4
8,087
0.8
%
79.6
18
Information Technology
1
7,915
0.8
%
7.2
19
Telecommunication Services
7
7,589
0.7
%
22.4
20
Information Technology
3
7,205
0.7
%
38.3
$
627,990
60.8
%
56.8
(a)
Customers and their affiliates
are consolidated.
(b)
Represents monthly contractual
rent (defined as cash rent including customer reimbursements for
metered power) under existing customer leases as of March 31, 2021,
multiplied by 12. For the month of March 2021, customer
reimbursements were $178.8 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 April 1, 2019 through December 31, 2020, customer
reimbursements under leases with separately metered power
constituted between 14.8% and 19.4% of annualized rent. After
giving effect to abatements, free rent and other straight-line
adjustments, our annualized effective rent as of March 31, 2021 was
$1,027.4 million. Our annualized effective rent was lower than our
annualized rent as of March 31, 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 March 31, 2021, which was approximately $1,033.6
million.
(d)
Weighted average based on
customer’s percentage of total annualized rent expiring and is as
of March 31, 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 March 31, 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
626
66
%
119
2
%
$
98,402
9
%
1000-2499
120
13
%
187
3
%
47,572
5
%
2500-4999
66
7
%
237
4
%
48,302
5
%
5000-9999
45
5
%
319
6
%
51,970
5
%
10000+
86
9
%
4,974
85
%
787,351
76
%
Total
943
100
%
5,836
100
%
$
1,033,597
100
%
(a)
Represents all leases in our
portfolio, including colocation, office and other leases.
(b)
Represents the number of
customers occupying data center, office and other space as of March
31, 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 March 31, 2021,
multiplied by 12. For the month of March 2021, customer
reimbursements were $178.8 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 April 1, 2019 through March 31, 2021, customer
reimbursements under leases with separately metered power
constituted between 14.8% and 19.4% of annualized rent. After
giving effect to abatements, free rent and other straight-line
adjustments, our annualized effective rent as of March 31, 2021 was
$1,027.4 million. Our annualized effective rent was lower than our
annualized rent as of March 31, 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 March 31, 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
2,304
28
%
Month-to-Month
1,499
113
1
%
$
36,978
4
%
$
37,095
3
%
2021
2,945
613
8
%
140,895
14
%
141,319
13
%
2022
2,233
831
10
%
158,684
15
%
165,338
15
%
2023
1,527
1,098
13
%
176,907
17
%
184,459
16
%
2024
536
491
6
%
108,644
11
%
115,829
10
%
2025
175
270
3
%
57,659
6
%
68,157
6
%
2026
90
706
9
%
118,765
11
%
126,598
11
%
2027
43
563
7
%
94,572
9
%
107,617
10
%
2028
24
281
4
%
36,183
3
%
41,755
4
%
2029
7
83
1
%
6,947
1
%
8,130
1
%
2030
7
175
2
%
13,364
1
%
21,700
2
%
2031 - Thereafter
26
612
8
%
83,999
8
%
103,401
9
%
Total
9,112
8,139
100
%
$
1,033,597
100
%
$
1,121,399
100
%
(a)
Leases that were auto-renewed
prior to March 31, 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 March 31, 2021,
multiplied by 12. For the month of March 2021, customer
reimbursements were $178.8 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 April 1, 2019 through March 31, 2021, customer
reimbursements under leases with separately metered power
constituted between 14.8% and 19.4% of annualized rent. After
giving effect to abatements, free rent and other straight-line
adjustments, our annualized effective rent as of March 31, 2021 was
$1,027.4 million. Our annualized effective rent was lower than our
annualized rent as of March 31, 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 March 31, 2021, multiplied by 12.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210428006091/en/
Investor Relations Michael Schafer Vice President,
Capital Markets & Investor Relations 972-350-0060 investorrelations@cyrusone.com
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