Signed $41.8 Million in Annualized GAAP Revenue
and 21 Megawatts in 2Q’21
CyrusOne Inc. (NASDAQ: CONE), a premier global data center REIT,
today announced second quarter 2021 earnings.
Highlights
Category
2Q’21
vs.
2Q’20
Revenue
$284.6 million
11%
Net income
$7.4 million
(84)%
Adjusted EBITDA
$141.9 million
4%
Normalized FFO
$123.1 million
4%
Net income per diluted common share
$0.06
(85)%
Normalized FFO per diluted common
share
$1.00
(3)%
- Leased 21 megawatts (“MW”) and 345,000 colocation square feet
(“CSF”) in the second quarter, totaling $41.8 million in annualized
GAAP revenue
- Backlog of approximately $129 million in annualized GAAP
revenue as of the end of the second quarter representing
approximately $1,075 million in total contract value
- Expansion into Madrid, Spain, one of the fastest-growing data
center markets in Europe, with the acquisition of approximately
five acres of land that will provide an estimated 21 MW of power
capacity
- Announcing a 2% increase in the quarterly dividend for the
third quarter of 2021 to $0.52 per share, up from $0.51 per share
in the second quarter of 2021
- Entered into forward sale agreements in the second quarter
through the at-the-market (“ATM”) equity program with respect to
approximately 3.0 million shares of common stock, which will result
in estimated net proceeds of approximately $232 million upon
settlement by June 2022
- Combined with forward sale agreements entered into in the third
and fourth quarters of 2020, which will result in estimated net
proceeds of approximately $287 million upon settlement by November
2021, the Company has approximately $519 million in available
forward equity
- Settled a forward sale agreement entered into in 2020,
resulting in net proceeds of approximately $95 million, which were
used to repay a portion of amounts outstanding under the Company’s
unsecured revolving credit facility and for general corporate
purposes
- As previously announced, executed inaugural green senior notes
offering, issuing €500 million of 1.125% senior notes due 2028
- As previously announced, executed an agreement to acquire a
12-acre site in Frankfurt, providing an estimated 63 MW of power
capacity to support the Company’s continued growth in one of the
strongest data center markets in Europe
Second Quarter 2021 Financial Results
Revenue was $284.6 million for the second quarter, compared to
$256.4 million for the same period in 2020, an increase of 11%. The
increase in revenue was driven primarily by a 9% increase in
occupied CSF and higher metered power reimbursements. Revenue
included $2.1 million of equipment sales and $0.4 in lease
termination fees, compared to $6.9 million of equipment sales and
$3.0 million in lease termination fees in the second quarter of
2020.
Net income was $7.4 million for the second quarter, compared to
net income of $45.0 million in the same period in 2020, a decrease
of (84)%. Net income for the second quarter included a $1.4 million
gain associated with a change in fair value on the undesignated
portion of the Company’s net investment hedge compared to a $(13.9)
million loss in the second quarter of 2020. Additionally, in the
second quarter of 2020, the Company had a $50.4 million gain on the
Company’s equity investment in GDS Holdings Limited. Net income per
diluted common share1 was $0.06 in the second quarter of 2021,
compared to net income per diluted common share of $0.39 in the
same period in 2020.
Net operating income (“NOI”)2 was $162.8 million for the second
quarter, compared to $157.4 million in the same period in 2020, an
increase of 3%. Adjusted EBITDA3 was $141.9 million for the second
quarter, compared to $136.8 million in the same period in 2020, an
increase of 4%.
Normalized Funds From Operations (“Normalized FFO”)4 was $123.1
million for the second quarter, compared to $118.9 million in the
same period in 2020, an increase of 4%. Normalized FFO per diluted
common share was $1.00 in the first quarter of 2021, compared to
$1.03 in the same period in 2020, a decrease of (3)%.
Leasing Activity
CyrusOne leased approximately 21 MW of power and 345,000 CSF in
the second quarter, representing approximately $3.5 million in
monthly recurring rent, inclusive of the monthly impact of
installation charges. The leasing for the quarter represents
approximately $41.8 million in annualized GAAP revenue5, excluding
estimates for pass-through power. The weighted average lease term
of the new leases, based on square footage, is 99 months (8.3
years), and the weighted average remaining lease term of CyrusOne’s
portfolio is 51 months (taking into consideration the impact of the
backlog). Recurring rent churn percentage6 for the second quarter
was 0.8%, compared to 1.1% for the same period in 2020.
Portfolio Development and Percentage CSF Leased
In the second quarter, the Company completed construction on
146,000 CSF and 45 MW of power capacity across Dublin, London,
Northern Virginia, and San Antonio. Percentage CSF leased7 as of
the end of the second quarter was 86% for stabilized properties8
and 83% overall. In addition, the Company has development projects
underway in Frankfurt, London, Paris, Phoenix, Northern Virginia,
the New York Metro area, and Cincinnati that are expected to add
approximately 280,000 CSF and 64 MW of power capacity plus 303,000
square feet of powered shell.
Balance Sheet and Liquidity
As of June 30, 2021, the Company had gross asset value9 totaling
approximately $9.2 billion, an increase of approximately 15% over
gross asset value as of June 30, 2020. CyrusOne had $3.59 billion
of long-term debt10, $370 million of cash and cash equivalents, and
approximately $1.39 billion available under its unsecured revolving
credit facility as of June 30, 2021. Net debt10 was $3.38 billion
as of June 30, 2021, representing approximately 28% of the
Company's total enterprise value as of June 30, 2021 of $12.3
billion. This represented approximately 5.0x Adjusted EBITDA for
the last quarter annualized (after further adjusting net debt to
reflect the pro forma impact of settlement of the forward sale
agreements). Available liquidity11 was $2.28 billion as of June 30,
2021.
During the second quarter of 2021, the Company executed its
inaugural green senior notes offering, issuing €500 million of
1.125% senior notes due 2028, with the net proceeds used to repay
Euro-denominated borrowings under the Company’s unsecured revolving
credit facility and for general corporate purposes. The Company
intends to also allocate an amount equal to the net proceeds from
the Notes to finance or refinance a portfolio of existing or future
green building, renewable energy, energy efficiency, sustainable
water and wastewater management, pollution prevention and control
and clean transportation projects or assets. The transaction
smooths and extends the Company’s debt maturity schedule and
increases its percentage of fixed-rate debt.
Also during the second quarter of 2021, the Company entered into
forward sale agreements through its ATM equity program with respect
to approximately 3.0 million shares of common stock, which will
result in estimated net proceeds of approximately $232 million upon
settlement by June 2022. Combined with the forward sale agreements
entered into in the third and fourth quarters of 2020, which will
result in estimated net proceeds of approximately $287 million upon
settlement by November 2021, the Company has approximately $519
million in available forward equity (no portion of the forward sale
agreements has been settled as of July 28, 2021). Also during the
second quarter of 2021, the Company settled a forward sale
agreement entered into in 2020, resulting in net proceeds of
approximately $95 million, which were used to repay a portion of
amounts outstanding on the Company’s unsecured revolving credit
facility and for general corporate purposes.
Additionally, the Company entered into sales agreements pursuant
to which it may issue and sell from time to time shares of its
common stock having an aggregate sales price of up to $750 million
through its ATM equity program. This new ATM equity program
replaced the prior ATM equity program. As of June 30, 2021, there
was approximately $513 million in remaining availability under the
new ATM equity program.
Dividend
On April 28, 2021, the Company announced a dividend of $0.51 per
share of common stock for the second quarter of 2021. The dividend
was paid on July 9, 2021, to stockholders of record at the close of
business on June 25, 2021.
Additionally, today the Company is announcing a dividend of
$0.52 per share of common stock for the third quarter of 2021, a 2%
increase in the dividend compared to the second quarter of 2021.
The dividend will be paid on October 8, 2021, to stockholders of
record at the close of business on September 24, 2021.
Guidance
CyrusOne is updating its guidance for full year 2021, increasing
the lower and upper ends of its guidance ranges for Total Revenue
and Normalized FFO per diluted common share, increasing the lower
end of its guidance range for Adjusted EBITDA, and decreasing the
lower and upper ends of its guidance range for Capital
Expenditures. The annual guidance provided below represents
forward-looking statements, which are based on current economic
conditions, internal assumptions about the Company's existing
customer base, and the supply and demand dynamics of the markets in
which CyrusOne operates. We continue to monitor the global outbreak
of COVID-19 and to take steps to mitigate the potential risks to us
posed by the pandemic. While the impact on our business has not
been significant to date, the length and severity of the effects of
the pandemic remain uncertain and unpredictable and could be
materially adverse to our business, financial condition, results of
operations, cash flows and ability to pay dividends as well as the
market price of our common stock.
CyrusOne does not provide forward-looking guidance for GAAP
financial measures (other than Total Revenue and Capital
Expenditures) or reconciliations for the non-GAAP financial
measures included in the annual guidance provided below due to the
inherent difficulty in forecasting and quantifying certain amounts
that are necessary for such reconciliations, including Net income
(loss) and adjustments that could be made for Transaction,
acquisition, integration and other related expenses, Legal claim
costs, Impairment losses and (gain) loss on asset disposals and
other charges in its reconciliation of historic numbers, the amount
of which, based on historical experience, could be significant.
Category
Previous
2021 Guidance
Revised
2021 Guidance
Total Revenue
$1,135 - 1,175 million
$1,155 - 1,185 million
Lease and Other Revenues from
Customers
$920 - 950 million
$930 - 950 million
Metered Power Reimbursements
$215 - 225 million
$225 - 235 million
Adjusted EBITDA
$570 - 590 million
$575 - 590 million
Normalized FFO per diluted common
share
$3.90 - 4.00
$3.95 - 4.05
Capital Expenditures
$925 - 1,025 million
$875 - 975 million
Development(1)
$905 - 985 million
$855 - 935 million
Recurring
$20 - 40 million
$20 - 40 million
(1)Development capital expenditures
include the acquisition of land for future development.
Upcoming Conferences and Events
- Cowen Communications Infrastructure Summit on August 9-10 in
Boulder, CO
- Deutsche Bank Technology Conference on September 9-10 in San
Francisco, CA
Conference Call Details
CyrusOne will host a conference call on July 29, 2021, at 11:00
AM Eastern Time (10:00 AM Central Time) to discuss its results for
the second quarter 2021. A live webcast of the conference call will
be available in the “Investors / Events & Presentations”
section of the Company's website at http://investor.cyrusone.com/events.cfm. The
presentation to be made during the call is now available in this
location. The U.S. conference call dial-in number is
1-844-492-3731, and the international dial-in number is
1-412-542-4121. A replay will be available one hour after the
conclusion of the earnings call on July 29, 2021, through August
12, 2021. The U.S. toll-free replay dial-in number is
1-877-344-7529 and the international replay dial-in number is
1-412-317-0088. The replay access code is 10158106.
Safe Harbor
This release and the documents incorporated by reference herein
contain certain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. We intend
such forward- looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995 and include this statement
for purposes of complying with these safe harbor provisions. All
statements, other than statements of historical facts, are
statements that could be deemed forward-looking statements. These
statements are based on current expectations, estimates, forecasts,
and projections about the industries in which we operate and the
beliefs and assumptions of our management. Words such as "expects,"
"anticipates," "predicts," "projects," "intends," "plans,"
"believes," "seeks," "estimates," "continues," "endeavors,"
"strives," "may," variations of such words and similar expressions
are intended to identify such forward-looking statements. In
addition, any statements that refer to projections of our future
financial performance, our anticipated growth and trends in our and
our customers’ respective businesses and industries, and other
characterizations of future events or circumstances are
forward-looking statements. Readers are cautioned these
forward-looking statements are based on current expectations and
assumptions that are subject to risks and uncertainties, which
could cause our actual results to differ materially and adversely
from those reflected in the forward-looking statements. Factors
that could cause or contribute to such differences include, but are
not limited to, (i) the potential widespread and highly uncertain
impact of public health outbreaks, epidemics and pandemics, such as
the COVID-19 pandemic; (ii) loss of key customers; (iii)
indemnification and liability provisions as well as service level
commitments in our contracts with customers imposing significant
costs on us in the event of losses; (iv) economic downturn, natural
disaster or oversupply of data centers in the limited geographic
areas that we serve; (v) risks related to the development of our
properties including, without limitation, obtaining applicable
permits, power and connectivity and our ability to successfully
lease those properties; (vi) weakening in the fundamentals for data
center real estate, including but not limited to, increased
competition, falling market rents, decreases in or slowed growth of
global data, e-commerce and demand for outsourcing of data storage
and cloud-based applications; (vii) loss of access to key
third-party service providers and suppliers; (viii) risks of loss
of power or cooling which may interrupt our services to our
customers; (ix) inability to identify and complete acquisitions and
operate acquired properties; (x) our failure to obtain necessary
outside financing on favorable terms, or at all; (xi) restrictions
in the instruments governing our indebtedness; (xii) risks related
to environmental, social and governance matters; (xiii) unknown or
contingent liabilities related to our acquisitions; (xiv)
significant competition in our industry; (xv) recent turnover, or
the further loss of, any of our key personnel; (xvi) risks
associated with real estate assets and the industry; (xvii) failure
to maintain our status as a REIT (as defined below) or to comply
with the highly technical and complex REIT provisions of the
Internal Revenue Code of 1986, as amended; (xviii) REIT
distribution requirements could adversely affect our ability to
execute our business plan; (xix) insufficient cash available for
distribution to stockholders; (xx) future offerings of debt may
adversely affect the market price of our common stock; (xxi)
increases in market interest rates will increase our borrowing
costs and may drive potential investors to seek higher dividend
yields and reduce demand for our common stock; (xxii) market price
and volume of stock could be volatile; (xxiii) risks related to
regulatory changes impacting our customers and demand for
colocation space in particular geographies; (xxiv) our
international activities, including those conducted as a result of
land acquisitions and with respect to leased land and buildings,
are subject to special risks different from those faced by us in
the United States; (xxv) the continuing uncertainty about the
future relationship between the United Kingdom and the European
Union following the United Kingdom’s withdrawal from the European
Union; (xxvi) expanded and widened price increases in certain
selective materials for data center development capital
expenditures due to international trade negotiations; (xxvii) a
failure to comply with anti-corruption laws and regulations;
(xxviii) legislative or other actions relating to taxes; (xxix) any
significant security breach or cyber-attack on us or our key
partners or customers; (xxx) the ongoing trade conflict between the
United States and the People’s Republic of China; (xxxi) increased
operating costs and capital expenditures at our facilities,
including those resulting from higher utilization by our customers,
general market conditions and inflation, exceeding revenue growth;
and (xxxii) other factors affecting the real estate and technology
industries generally. More information on potential risks and
uncertainties is available in our recent filings with the
Securities and Exchange Commission (SEC), including CyrusOne’s Form
10-K report, Form 10-Q reports, and Form 8-K reports. We disclaim
any obligation other than as required by law to publicly update or
revise any forward-looking statement to reflect changes in
underlying assumptions or factors or for new information, data or
methods, future events or other changes.
Use of Non-GAAP Financial Measures and Other Metrics
This press release contains certain non-GAAP financial measures
that management believes are helpful in understanding the Company’s
business, as further discussed within this press release. These
financial measures, which include Funds From Operations, Normalized
Funds From Operations, Normalized Funds From Operations per Diluted
Common Share, Adjusted EBITDA, Net Operating Income, and Net Debt
should not be construed as being more important than, or a
substitute for, comparable GAAP financial measures. Detailed
reconciliations of these non-GAAP financial measures to comparable
GAAP financial measures have been included in the tables that
accompany this release and are available in the Investor Relations
section of www.cyrusone.com.
Management uses FFO, Normalized FFO, Normalized FFO per Diluted
Common Share, Adjusted EBITDA, and NOI, which are non-GAAP
financial measures commonly used in the real estate investments
trusts (REIT) industry, as supplemental performance measures.
Management uses these measures as supplemental performance measures
because, when compared period over period, they capture trends in
occupancy rates, rental rates and operating costs. The Company also
believes that, as widely recognized measures of the performance of
REITs, these measures are used by investors as a basis to evaluate
REITs. Other REITs may not calculate these measures in the same
manner, and, as presented, they may not be comparable to others.
Therefore, FFO, Normalized FFO, NOI, and Adjusted EBITDA should be
considered only as supplements to net income (loss) presented in
accordance with GAAP as measures of our performance. FFO,
Normalized FFO, NOI, and Adjusted EBITDA should not be used as
measures of our liquidity or as indicative of funds available to
fund our cash needs, including our ability to pay dividends or make
distributions. These measures also should not be used as
supplements to or substitutes for cash flow from operating
activities computed in accordance with GAAP. The Company believes
that Net Debt provides a useful measure of liquidity and financial
health.
1Net income (loss) per diluted common share is defined as Net
income (loss) divided by the weighted average diluted common shares
outstanding for the period, which were 122.7 million for the second
quarter of 2021 and 115.7 million for the second quarter of
2020.
2We use Net Operating Income ("NOI"), which is a non-GAAP
financial measure commonly used in the REIT industry, as a
supplemental performance measure. We use NOI as a supplemental
performance measure because, when compared period over period, it
captures trends in occupancy rates, rental rates and operating
expenses. We also believe that, as a widely recognized measure of
the performance of REITs, NOI is used by investors as a basis to
evaluate REITs.
We calculate NOI as Net income, adjusted for Sales and marketing
expenses, General and administrative expenses, Depreciation and
amortization expenses, Transaction, acquisition, integration and
other related expenses, Interest expense, net, Gain on marketable
equity investment, Loss on early extinguishment of debt, Impairment
losses and loss on asset disposals, Foreign currency and derivative
(gains) losses, net, Other expense (income) and Income tax benefit.
Amortization of deferred leasing costs is presented in Depreciation
and amortization expenses, which is excluded from NOI. Sales and
marketing expenses are not property-specific, rather these expenses
support our entire portfolio. As a result, we have excluded these
Sales and marketing expenses from our NOI calculation, consistent
with the treatment of General and administrative expenses, which
also support our entire portfolio. Because the calculation of NOI
excludes various expenses, the utility of NOI as a measure of our
performance is limited. Other REITs may not calculate NOI in the
same manner. Accordingly, our NOI may not be comparable to others.
Therefore, NOI should be considered only as a supplement to Net
income presented in accordance with GAAP as a measure of our
performance. NOI should not be used as a measure of our liquidity
or as indicative of funds available to fund our cash needs,
including our ability to pay dividends and make distributions. NOI
also should not be used as a supplement to or substitute for cash
flow from operating activities computed in accordance with
GAAP.
3Adjusted EBITDA, which is a non-GAAP financial measure, is
defined as Net income (loss) as defined by GAAP adjusted for
Interest expense, net; Income tax (benefit) expense; Depreciation
and amortization expenses; Impairment losses and loss on asset
disposals; Transaction, acquisition, integration and other related
expenses; Legal claim costs; Stock-based compensation expense; Cash
severance and management transition costs; Severance-related stock
compensation costs; Loss on early extinguishment of debt; Gain on
marketable equity investment; Foreign currency and derivative
(gains) losses, net and Other expense (income). Other companies may
not calculate Adjusted EBITDA in the same manner. Accordingly, the
Company’s Adjusted EBITDA as presented may not be comparable to
others.
4We use funds from operations ("FFO") and normalized funds from
operations ("Normalized FFO"), which are non-GAAP financial
measures commonly used in the REIT industry, as supplemental
performance measures. We use FFO and Normalized FFO as supplemental
performance measures because, when compared period over period,
they capture trends in occupancy rates, rental rates and operating
costs. We also believe that, as widely recognized measures of the
performance of REITs, FFO and Normalized FFO are used by investors
as a basis to evaluate REITs.
We calculate FFO as Net income (loss) computed in accordance
with GAAP before Real estate depreciation and amortization and
Impairment losses and loss on asset disposals. While it is
consistent with the definition of FFO promulgated by the National
Association of Real Estate Investment Trusts ("NAREIT"), our
computation of FFO may differ from the methodology for calculating
FFO used by other REITs. Accordingly, our FFO may not be comparable
to others.
We calculate Normalized FFO as FFO adjusted for Loss on early
extinguishment of debt; Gain on marketable equity investment;
Foreign currency and derivative (gains) losses, net; Amortization
of tradenames; Transaction, acquisition, integration and other
related expenses; Cash severance and management transition costs;
Severance-related stock compensation costs; and Legal claim costs.
We believe our Normalized FFO calculation provides a comparable
measure between different periods. Other REITs may not calculate
Normalized FFO in the same manner, accordingly, our Normalized FFO
may not be comparable to others.
In addition, because FFO and Normalized FFO exclude Real estate
depreciation and amortization, and capture neither the changes in
the value of our properties that result from use or from market
conditions, nor the level of capital expenditures and leasing
commissions necessary to maintain the operating performance of our
properties, all of which have real economic effect and could
materially impact our results from operations, the utility of FFO
and Normalized FFO as measures of our performance is limited.
Therefore, FFO and Normalized FFO should be considered only as
supplements to Net income (loss) presented in accordance with GAAP
as measures of our performance. FFO and Normalized FFO should not
be used as measures of our liquidity or as indicative of funds
available to fund our cash needs, including our ability to pay
dividends or make distributions. FFO and Normalized FFO also should
not be used as supplements to or substitutes for cash flow from
operating activities computed in accordance with GAAP.
5Annualized GAAP revenue is equal to monthly recurring rent,
defined as average monthly contractual rent during the term of the
lease plus the monthly impact of installation charges, multiplied
by 12. It can be shown both inclusive and exclusive of the
Company’s estimate of customer reimbursements for metered
power.
6Recurring rent churn percentage is calculated as any reduction
in recurring rent due to customer terminations, service reductions
or net pricing decreases as a percentage of rent at the beginning
of the period, excluding any impact from metered power
reimbursements or other usage-based billing.
7Percentage CSF leased is calculated by dividing CSF under
signed leases for colocation space (whether or not the lease has
commenced billing) by total CSF. Percentage CSF leased differs from
percentage CSF occupied presented in the Data Center Portfolio
table because the leased rate includes CSF for signed leases that
have not commenced billing.
8Stabilized properties include data halls that have been in
service for at least 24 months or are at least 85% leased.
9Gross asset value is defined as total assets plus accumulated
depreciation.
10Long-term debt and net debt exclude adjustments for deferred
financing costs and bond discounts / premiums. Net debt, which is a
non-GAAP financial measure, provides a useful measure of liquidity
and financial health. The Company defines net debt as long-term
debt and finance lease liabilities, offset by cash and cash
equivalents.
11Liquidity is calculated as cash, cash equivalents, and
temporary cash investments on hand, plus the undrawn capacity on
CyrusOne’s revolving credit facility, plus the pro forma impact of
the net proceeds from the settlement of the forward sale
agreements.
About CyrusOne
CyrusOne (NASDAQ: CONE) is a premier global REIT specializing in
design, construction and operation of more than 50 high-performance
data centers worldwide. The Company provides mission-critical
facilities that ensure the continued operation of IT infrastructure
for approximately 1,000 customers, including approximately 200
Fortune 1000 companies.
A leader in hybrid-cloud and multi-cloud deployments, CyrusOne
offers colocation, hyperscale, and build-to-suit environments that
help customers enhance the strategic connection of their essential
data infrastructure and support achievement of sustainability
goals. CyrusOne data centers offer world-class flexibility,
enabling clients to modernize, simplify, and rapidly respond to
changing demand. Combining exceptional financial strength with a
broad global footprint, CyrusOne provides customers with long-term
stability and strategic advantage at scale.
Company Profile
CyrusOne (NASDAQ: CONE) specializes in highly reliable
enterprise-class, carrier-neutral data center properties. The
Company provides mission-critical data center facilities that
protect and ensure the continued operation of IT infrastructure for
approximately 1,000 customers, including approximately 200 Fortune
1000 companies. CyrusOne's data center offerings provide the
flexibility, reliability, and security that enterprise customers
require and are delivered through a tailored, customer
service-focused platform designed to foster long-term
relationships. CyrusOne is committed to full transparency in
communication, management, and service delivery throughout its more
than 50 data centers worldwide.
- 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 St., Ste. 2200
David Ferdman, Interim President &
CEO
Brent Behrman, EVP of Sales
Dallas, Texas 75201
Katherine Motlagh, EVP & Chief
Financial Officer
Matt Pullen, EVP & Managing Director,
Europe
Phone: (972) 350-0060
John Hatem, EVP & Chief Operating
Officer
Robert M. Jackson, EVP General Counsel
& Secretary
Website: www.cyrusone.com
Analyst Coverage
Firm
Analyst
Phone
Number
BofA Securities
Michael J. Funk
(646) 855-5664
Barclays
Tim Long
(212) 526 4043
Berenberg Capital Markets
Nate Crossett
(646) 949-9030
BMO Capital Markets
Ari Klein
(212) 885-4103
Citi
Mike Rollins
(212) 816-1116
Cowen and Company
Colby Synesael
(646) 562-1355
Credit Suisse
Sami Badri
(212) 538-1727
Deutsche Bank
Matthew Niknam
(212) 250-4711
Green Street
David Guarino
(949) 640-8780
Jefferies
Jonathan Petersen
(212) 284-1705
J.P. Morgan
Richard Choe
(212) 622-6708
KeyBanc Capital Markets
Jordan Sadler
(917) 368-2280
MoffettNathanson
Nick Del Deo, CFA
(212) 519-0025
Morgan Stanley
Simon Flannery
(212) 761-6432
RBC Capital Markets
Jonathan Atkin
(415) 633-8589
Raymond James
Frank G. Louthan IV
(404) 442-5867
Stifel
Erik Rasmussen
(212) 271-3461
TD Securities Inc.
Jonathan Kelcher, CFA
(416) 307-9931
Truist
Greg Miller
(212) 303-4169
UBS
John C. Hodulik, CFA
(212) 713-4226
Wells Fargo
Eric Luebchow
(312) 630-2386
William Blair
Jim Breen, CFA
(617) 235-7513
Wolfe Research
Jeff Kvaal
(646) 582-9350
CyrusOne Inc.
Summary of Financial
Data
(Dollars in millions, except
per share amounts)
Three Months
June 30,
March 31,
June 30,
Growth %
2021
2021
2020
Yr/Yr
Revenue
$
284.6
$
298.6
$
256.4
11
%
Net operating income
162.8
162.8
157.4
3
%
Net income
7.4
18.2
45.0
(84)
%
Funds from Operations ("FFO") - Nareit
defined
129.0
137.7
154.9
(17)
%
Normalized Funds from Operations
("Normalized FFO")
123.1
120.2
118.9
4
%
Weighted average number of common shares
outstanding - diluted for Normalized FFO
122.7
120.5
115.7
6
%
Net income per share - basic
$
0.06
$
0.15
$
0.39
(85)
%
Net income per share - diluted
$
0.06
$
0.15
$
0.39
(85)
%
Normalized FFO per diluted common
share
$
1.00
$
1.00
$
1.03
(3)
%
Adjusted EBITDA
$
141.9
$
140.3
$
136.8
4
%
Adjusted EBITDA as a % of Revenue
49.9
%
47.0
%
53.4
%
(3.5) pts
As of
June 30,
March 31,
June 30,
Growth %
2021
2021
2020
Yr/Yr
Balance Sheet Data
Gross investment in real estate
$
7,518.8
$
7,166.0
$
6,504.9
16
%
Accumulated depreciation
(1,977.8)
(1,867.5)
(1,562.7)
27
%
Total investment in real estate, net
5,541.0
5,298.5
4,942.2
12
%
Cash and cash equivalents
369.7
240.9
70.7
n/m
Market value of common equity
8,869.3
8,298.1
8,501.0
4
%
Long-term debt
3,587.8
3,372.7
3,191.3
12
%
Net debt
3,380.9
3,160.4
3,149.4
7
%
Total enterprise value
12,250.2
11,458.5
11,650.4
5
%
Net debt to LQA Adjusted EBITDA(a)
5.0x
4.9x
5.0x
—x
Dividend Activity
Dividends per share
$
0.51
$
0.51
$
0.50
2
%
Portfolio Statistics
Data centers
54
53
51
6
%
Stabilized CSF (000)
4,611
4,422
4,055
14
%
Stabilized CSF % leased
86
%
85
%
88
%
(2) pts
Total CSF (000)
4,889
4,743
4,427
10
%
Total CSF % leased
83
%
82
%
83
%
— pts
Total GSF (000)
8,346
8,139
7,605
10
%
(a) Adjusted to reflect the pro forma
impact of the net proceeds from the settlement of the forward sale
agreements.
CyrusOne Inc.
Condensed Consolidated
Statements of Operations
(Dollars in millions, except
per share amounts)
(Unaudited)
Three Months
Six Months
Ended June 30,
Change
Ended June 30,
Change
2021
2020
$
%
2021
2020
$
%
Revenue(a)
$
284.6
$
256.4
$
28.2
11
%
$
583.2
$
502.3
$
80.9
16
%
Operating expenses:
Property operating expenses
121.8
99.0
22.8
23
%
257.6
191.6
66.0
34
%
Sales and marketing
3.7
3.8
(0.1
)
(3
)
%
7.5
8.5
(1.0
)
(12
)
%
General and administrative
16.6
20.3
(3.7
)
(18
)
%
39.6
47.2
(7.6
)
(16
)
%
Depreciation and amortization
123.7
109.7
14.0
13
%
245.1
217.8
27.3
13
%
Transaction, acquisition, integration and
other related expenses
0.1
0.1
—
—
%
0.2
0.5
(0.3
)
(60
)
%
Impairment losses and loss on asset
disposals
0.1
2.4
(2.3
)
(96
)
%
0.6
2.4
(1.8
)
(75
)
%
Total operating expenses
266.0
235.3
235.3
13
%
550.6
468.0
82.6
18
%
Operating income
18.6
21.1
(207.1
)
(12
)
%
32.6
34.3
(1.7
)
(5
)
%
Interest expense, net
(14.8
)
(13.9
)
(0.9
)
6
%
(29.9
)
(29.9
)
—
—
%
Gain on marketable equity investment
—
50.4
(50.4
)
(100
)
%
2.4
65.1
(62.7
)
(96
)
%
Loss on early extinguishment of debt
—
—
—
n/m
—
(3.4
)
3.4
(100
)
%
Foreign currency and derivative gains
(losses), net
1.4
(13.9
)
15.3
n/m
16.8
(8.8
)
25.6
n/m
Other (expense) income
(0.1
)
0.1
(0.2
)
n/m
(0.2
)
—
(0.2
)
n/m
Net income before income taxes
5.1
43.8
(243.3
)
(88
)
%
21.7
57.3
(35.6
)
(62
)
%
Income tax benefit
2.3
1.2
1.1
92
%
3.9
2.4
1.5
63
%
Net income
$
7.4
$
45.0
$
(37.6
)
(84
)
%
$
25.6
$
59.7
$
(34.1
)
(57
)
%
Net income per share - basic
$
0.06
$
0.39
$
(0.33
)
(85
)
%
$
0.21
$
0.52
$
(0.31
)
(60
)
%
Net income per share - diluted
$
0.06
$
0.39
$
(0.33
)
(85
)
%
$
0.21
$
0.52
$
(0.31
)
(60
)
%
(a)
Revenue includes metered power
reimbursements of $53.0 million and $37.1 million for the three
months ended June 30, 2021 and 2020, respectively, and includes
metered power reimbursements of $126.1 million and $71.9 million
for the six months ended June 30, 2021 and 2020, respectively.
CyrusOne Inc.
Condensed Consolidated Balance
Sheets
(Dollars in millions)
(Unaudited)
June 30,
December 31,
Change
2021
2020
$
%
Assets
Investment in real estate:
Land
$
212.8
$
208.8
$
4.0
2
%
Buildings and improvements
2,253.8
2,035.2
218.6
11
%
Equipment
3,869.0
3,538.9
330.1
9
%
Gross operating real estate
6,335.6
5,782.9
552.7
10
%
Less accumulated depreciation
(1,977.8
)
(1,767.9
)
(209.9
)
12
%
Net operating real estate
4,357.8
4,015.0
342.8
9
%
Construction in progress, including land
under development
917.3
982.2
(64.9
)
(7
)
%
Land held for future development
265.9
268.3
(2.4
)
(1
)
%
Total investment in real estate, net
5,541.0
5,265.5
275.5
5
%
Cash and cash equivalents
369.7
271.4
98.3
36
%
Rent and other receivables (net of
allowance for doubtful accounts of $2.3 and $3.5 as of June 30,
2021 and December 31, 2020, respectively)
409.4
334.2
75.2
23
%
Restricted cash
24.8
1.5
23.3
n/m
Operating lease right-of-use assets,
net
155.0
211.4
(56.4
)
(27
)
%
Equity investments
30.0
67.1
(37.1
)
(55
)
%
Goodwill
455.1
455.1
—
—
%
Intangible assets (net of accumulated
amortization of $265.8 and $249.3 as of June 30, 2021 and December
31, 2020, respectively)
141.2
157.8
(16.6
)
(11
)
%
Other assets
115.0
133.4
(18.4
)
(14
)
%
Total assets
$
7,241.2
$
6,897.4
$
343.8
5
%
Liabilities and equity
Debt
$
3,541.6
$
3,409.0
$
132.6
4
%
Finance lease liabilities
162.8
29.1
133.7
n/m
Operating lease liabilities
190.5
249.1
(58.6
)
(24
)
%
Construction costs payable
157.7
133.0
24.7
19
%
Accounts payable and accrued expenses
147.7
151.3
(3.6
)
(2
)
%
Dividends payable
63.6
63.3
0.3
—
%
Deferred revenue and prepaid rents
217.1
174.1
43.0
25
%
Deferred tax liability
45.3
53.0
(7.7
)
(15
)
%
Other liabilities
58.3
77.3
(19.0
)
(25
)
%
Total liabilities
4,584.6
4,339.2
245.4
6
%
Stockholders' equity
Preferred stock, $0.01 par value,
100,000,000 authorized; no shares issued or outstanding
—
—
—
n/m
Common stock, $0.01 par value, 500,000,000
shares authorized and 124,010,867 and 120,442,521 shares issued and
outstanding at June 30, 2021 and December 31, 2020,
respectively
1.2
1.2
—
—
%
Additional paid in capital
3,731.3
3,537.3
194.0
5
%
Accumulated deficit
(1,066.1
)
(966.6
)
(99.5
)
10
%
Accumulated other comprehensive loss
(9.8
)
(13.7
)
3.9
(28
)
%
Total stockholders’ equity
2,656.6
2,558.2
98.4
4
%
Total liabilities and equity
$
7,241.2
$
6,897.4
$
343.8
5
%
CyrusOne Inc.
Condensed Consolidated
Statements of Operations
(Dollars in millions, except
per share amounts)
(Unaudited)
For the three months ended:
June 30,
March 31,
December 31,
September 30,
June 30,
2021
2021
2020
2020
2020
Revenue(a)
$
284.6
$
298.6
$
268.4
$
262.8
$
256.4
Operating expenses:
Property operating expenses
121.8
135.8
110.3
109.7
99.0
Sales and marketing
3.7
3.8
5.3
4.5
3.8
General and administrative
16.6
23.0
22.4
29.7
20.3
Depreciation and amortization
123.7
121.4
118.5
113.1
109.7
Transaction, acquisition, integration and
other related expenses
0.1
0.1
1.5
1.6
0.1
Impairment losses and loss on asset
disposals
0.1
0.5
—
8.8
2.4
Total operating expenses
266.0
284.6
258.0
267.4
235.3
Operating income (loss)
18.6
14.0
10.4
(4.6
)
21.1
Interest expense, net
(14.8
)
(15.1
)
(14.5
)
(13.3
)
(13.9
)
Gain on marketable equity investment
—
2.4
19.7
4.7
50.4
Loss on early extinguishment of debt
—
—
—
(3.1
)
—
Foreign currency and derivative gains
(losses), net
1.4
15.4
4.1
(22.9
)
(13.9
)
Other (expense) income
(0.1
)
(0.1
)
—
—
0.1
Net income (loss) before income
taxes
5.1
16.6
19.7
(39.2
)
43.8
Income tax benefit (expense)
2.3
1.6
(0.7
)
1.9
1.2
Net income (loss)
$
7.4
$
18.2
$
19.0
$
(37.3
)
$
45.0
Net income (loss) per share -
basic
$
0.06
$
0.15
$
0.15
$
(0.32
)
$
0.39
Net income (loss) per share -
diluted
$
0.06
$
0.15
$
0.15
$
(0.32
)
$
0.39
(a)
Revenue includes metered power
reimbursements of $53.0 million, $73.1 million, $44.9 million,
$44.6 million and $37.1 million for the three months ended June 30,
2021, March 31, 2021, December 31, 2020, September 30, 2020 and
June 30, 2020, respectively.
CyrusOne Inc.
Condensed Consolidated Balance
Sheets
(Dollars in millions)
(Unaudited)
June 30,
March 31,
December 31,
September 30,
June 30,
2021
2021
2020
2020
2020
Assets
Investment in real estate:
Land
$
212.8
$
207.3
$
208.8
$
181.2
$
175.5
Buildings and improvements
2,253.8
2,046.6
2,035.2
1,918.4
1,857.9
Equipment
3,869.0
3,596.5
3,538.9
3,341.7
3,229.5
Gross operating real estate
6,335.6
5,850.4
5,782.9
5,441.3
5,262.9
Less accumulated depreciation
(1,977.8
)
(1,867.5
)
(1,767.9
)
(1,663.4
)
(1,562.7
)
Net operating real estate
4,357.8
3,982.9
4,015.0
3,777.9
3,700.2
Construction in progress, including land
under development
917.3
1,053.3
982.2
1,085.9
1,024.8
Land held for future development
265.9
262.3
268.3
264.4
217.2
Total investment in real estate, net
5,541.0
5,298.5
5,265.5
5,128.2
4,942.2
Cash and cash equivalents
369.7
240.9
271.4
156.5
70.7
Rent and other receivables, net
409.4
389.8
334.2
306.9
307.0
Restricted cash
24.8
1.4
1.5
1.4
1.3
Operating lease right-of-use assets,
net
155.0
239.7
211.4
206.9
204.7
Equity investments
30.0
22.9
67.1
178.1
184.9
Goodwill
455.1
455.1
455.1
455.1
455.1
Intangible assets, net
141.2
149.2
157.8
166.4
174.9
Other assets
115.0
114.3
133.4
112.8
127.3
Total assets
$
7,241.2
$
6,911.8
$
6,897.4
$
6,712.3
$
6,468.1
Liabilities and equity
Debt
$
3,541.6
$
3,337.4
$
3,409.0
$
3,197.8
$
3,156.9
Finance lease liabilities
162.8
28.6
29.1
29.2
28.8
Operating lease liabilities
190.5
277.9
249.1
244.3
240.5
Construction costs payable
157.7
137.5
133.0
168.2
155.7
Accounts payable and accrued expenses
147.7
168.9
151.3
145.3
127.0
Dividends payable
63.6
62.0
63.3
63.1
59.7
Deferred revenue and prepaid rents
217.1
183.2
174.1
166.8
166.2
Deferred tax liability
45.3
48.2
53.0
55.4
55.8
Other liabilities
58.3
53.3
77.3
37.8
16.8
Total liabilities
4,584.6
4,297.0
4,339.2
4,107.9
4,007.4
Stockholders' equity
Preferred stock, $0.01 par value,
100,000,000 authorized; no shares issued or outstanding
—
—
—
—
—
Common stock, $0.01 par value, 500,000,000
shares authorized and 124,010,867 and 120,442,521 shares issued and
outstanding at June 30, 2021 and December 31, 2020,
respectively
1.2
1.2
1.2
1.2
1.2
Additional paid in capital
3,731.3
3,628.6
3,537.3
3,532.9
3,305.9
Accumulated deficit
(1,066.1
)
(1,010.2
)
(966.6
)
(923.9
)
(824.7
)
Accumulated other comprehensive loss
(9.8
)
(4.8
)
(13.7
)
(5.8
)
(21.7
)
Total stockholders' equity
2,656.6
2,614.8
2,558.2
2,604.4
2,460.7
Total liabilities and equity
$
7,241.2
$
6,911.8
$
6,897.4
$
6,712.3
$
6,468.1
CyrusOne Inc.
Condensed Consolidated
Statements of Cash Flows
(Dollars in millions)
(Unaudited)
Six Months Ended June 30,
2021
Six Months Ended June 30,
2020
Three Months Ended June 30,
2021
Three Months Ended June 30,
2020
Cash flows from operating activities:
Net income
$
25.6
$
59.7
$
7.4
$
45.0
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
245.1
217.8
123.7
109.7
Provision for bad debt expense
(0.9
)
—
0.2
0.1
Gain on marketable equity investment
(2.4
)
(65.1
)
—
(50.4
)
Foreign currency and derivative (gains)
losses, net
(16.8
)
8.8
(1.4
)
13.9
Proceeds from swap terminations
—
2.9
—
—
Impairment losses and loss on asset
disposals
0.6
2.2
0.1
2.2
Loss on early extinguishment of debt
—
3.4
—
—
Interest expense amortization, net
3.5
3.6
1.9
1.6
Stock-based compensation expense
8.7
7.0
4.3
3.3
Deferred income tax benefit
(6.0
)
(4.2
)
(3.4
)
(2.2
)
Operating lease cost
10.3
13.0
5.1
6.8
Other (expense) income
(0.1
)
0.5
—
0.3
Change in operating assets and
liabilities:
Rent and other receivables, net and other
assets
(68.5
)
(31.0
)
(25.1
)
(1.6
)
Accounts payable and accrued expenses
(3.3
)
4.7
(21.7
)
5.9
Deferred revenue and prepaid rents
42.5
2.0
34.0
(1.2
)
Operating lease liabilities
(12.2
)
(11.1
)
(5.7
)
(5.5
)
Net cash provided by operating
activities
226.1
214.2
119.4
127.9
Cash flows from investing activities:
Investments in real estate
(361.7
)
(458.0
)
(186.3
)
(261.5
)
Proceeds from sale of equity
investments
46.6
8.2
—
8.2
Equity investments
(7.1
)
(4.7
)
(7.1
)
(1.4
)
Proceeds from the sale of real estate
assets
4.4
0.3
—
0.3
Net cash used in investing
activities
(317.8
)
(454.2
)
(193.4
)
(254.4
)
Cash flows from financing activities:
Issuance of common stock, net
194.2
103.3
98.4
102.7
Dividends paid
(124.7
)
(116.1
)
(61.7
)
(57.7
)
Proceeds from revolving credit
facility
173.4
438.8
83.1
194.4
Repayments of revolving credit
facility
(610.5
)
(723.1
)
(486.3
)
(100.0
)
Proceeds from Euro bond
603.1
550.2
603.1
(0.4
)
Proceeds from unsecured term loan
—
1,100.0
—
—
Repayments of unsecured term loan
—
(1,100.0
)
—
—
Payment of deferred financing costs
(5.0
)
(12.5
)
(5.0
)
1.1
Payments on finance lease liabilities
(2.2
)
(1.3
)
(1.5
)
(0.6
)
Tax payment upon exercise of equity
awards
(8.9
)
(6.4
)
—
(0.1
)
Net cash provided by financing
activities
219.4
232.9
230.1
139.4
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(6.1
)
1.4
(3.9
)
0.5
Net (increase) decrease in cash, cash
equivalents and restricted cash
121.6
(5.7
)
152.2
13.4
Cash, cash equivalents and restricted cash
at beginning of period
272.9
77.7
242.3
58.6
Cash, cash equivalents and restricted
cash at end of period
$
394.5
$
72.0
$
394.5
$
72.0
Supplemental disclosure of cash flow
information:
Cash paid for interest, including amounts
capitalized of $10.8 million and $11.4 million in 2021 and 2020,
respectively
$
42.2
$
30.0
$
29.4
$
21.7
Cash paid for income taxes
3.2
0.1
3.2
0.1
Non-cash investing and financing
activities:
Construction costs payable
157.7
155.7
157.7
155.7
Dividends payable
63.6
59.7
63.6
59.7
CyrusOne Inc.
Reconciliation of Net Income
to Net Operating Income
(Dollars in millions)
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
Change
June 30,
Change
2021
2020
$
%
2021
2020
$
%
Net income
$
7.4
$
45.0
$
(37.6
)
(84
)
%
$
25.6
$
59.7
$
(34.1
)
(57
)
%
Sales and marketing expenses
3.7
3.8
(0.1
)
(3
)
%
7.5
8.5
(1.0
)
(12
)
%
General and administrative expenses
16.6
20.3
(3.7
)
(18
)
%
39.6
47.2
(7.6
)
(16
)
%
Depreciation and amortization expenses
123.7
109.7
14.0
13
%
245.1
217.8
27.3
13
%
Transaction, acquisition, integration and
other related expenses
0.1
0.1
—
—
%
0.2
0.5
(0.3
)
(60
)
%
Interest expense, net
14.8
13.9
0.9
6
%
29.9
29.9
—
—
%
Gain on marketable equity investment
—
(50.4
)
50.4
(100
)
%
(2.4
)
(65.1
)
62.7
(96
)
%
Loss on early extinguishment of debt
—
—
—
n/m
—
3.4
(3.4
)
(100
)
%
Impairment losses and loss on asset
disposals
0.1
2.4
(2.3
)
(96
)
%
0.6
2.4
(1.8
)
(75
)
%
Foreign currency and derivative (gains)
losses, net
(1.4
)
13.9
(15.3
)
n/m
(16.8
)
8.8
(25.6
)
n/m
Other expense (income)
0.1
(0.1
)
0.2
n/m
0.2
—
0.2
n/m
Income tax benefit
(2.3
)
(1.2
)
(1.1
)
92
%
(3.9
)
(2.4
)
(1.5
)
63
%
Net Operating Income
$
162.8
$
157.4
$
5.4
3
%
$
325.6
$
310.7
$
14.9
5
%
CyrusOne Inc.
Net Operating Income and
Reconciliation of Net Income (Loss) to Adjusted EBITDA
(Dollars in millions)
(Unaudited)
Six Months Ended
Three Months Ended
June 30,
Change
June 30,
March 31,
December 31,
September 30,
June 30,
2021
2020
$
%
2021
2021
2020
2020
2020
Net Operating Income
Revenue
$
583.2
$
502.3
$
80.9
16
%
$
284.6
$
298.6
$
268.4
$
262.8
$
256.4
Property operating expenses
257.6
191.6
66.0
34
%
121.8
135.8
110.3
109.7
99.0
Net Operating Income (NOI)
$
325.6
$
310.7
$
14.9
5
%
$
162.8
$
162.8
$
158.1
$
153.1
$
157.4
NOI as a % of Revenue
55.8
%
61.9
%
57.2
%
54.5
%
58.9
%
58.3
%
61.4
%
Reconciliation of Net Income (Loss) to
Adjusted EBITDA:
Net income (loss)
$
25.6
$
59.7
$
(34.1
)
(57
)%
$
7.4
$
18.2
$
19.0
$
(37.3
)
$
45.0
Interest expense, net
29.9
29.9
—
—
%
14.8
15.1
14.5
13.3
13.9
Income tax (benefit) expense
(3.9
)
(2.4
)
(1.5
)
63
%
(2.3
)
(1.6
)
0.7
(1.9
)
(1.2
)
Depreciation and amortization expenses
245.1
217.8
27.3
13
%
123.7
121.4
118.5
113.1
109.7
Impairment losses and loss on asset
disposals
0.6
2.4
(1.8
)
(75
)%
0.1
0.5
—
8.8
2.4
EBITDA (Nareit definition)(a)
$
297.3
$
307.4
$
(10.1
)
(3
)%
$
143.7
$
153.6
$
152.7
$
96.0
$
169.8
Transaction, acquisition, integration and
other related expenses
0.2
0.5
(0.3
)
(60
)%
0.1
0.1
1.5
1.6
0.1
Legal claim costs
(4.9
)
0.2
(5.1
)
n/m
(4.9
)
—
—
0.1
0.1
Stock-based compensation expense
8.7
6.9
1.8
26
%
4.3
4.4
4.4
4.2
3.4
Cash severance and management transition
costs
(0.1
)
6.8
(6.9
)
n/m
—
(0.1
)
0.9
6.4
—
Severance-related stock compensation
costs
—
0.1
(0.1
)
(100
)%
—
—
0.2
2.6
—
Loss on early extinguishment of debt
—
3.4
(3.4
)
(100
)%
—
—
—
3.1
—
Gain on marketable equity investment
(2.4
)
(65.1
)
62.7
(96
)%
—
(2.4
)
(19.7
)
(4.7
)
(50.4
)
Foreign currency and derivative (gains)
losses, net
(16.8
)
8.8
(25.6
)
n/m
(1.4
)
(15.4
)
(4.1
)
22.9
13.9
Other expense (income)
0.2
—
0.2
n/m
0.1
0.1
—
—
(0.1
)
Adjusted EBITDA
$
282.2
$
269.0
$
13.2
5
%
$
141.9
$
140.3
$
135.9
$
132.2
$
136.8
Adjusted EBITDA as a % of Revenue
48.4
%
53.6
%
49.9
%
47.0
%
50.6
%
50.3
%
53.4
%
(a)
We calculate Earnings Before Interest,
Taxes, Depreciation and Amortization for Real Estate (EBITDAre) as
GAAP Net income (loss) plus Interest expense, net, Income tax
(benefit) expense, Depreciation and amortization expenses and
Impairment losses and loss (gain) on asset disposals. While it is
consistent with the definition of EBITDAre promulgated by the
National Association of Real Estate Investment Trusts ("Nareit"),
our computation of EBITDAre may differ from the methodology for
calculating EBITDAre used by other REITs. Accordingly, our EBITDAre
may not be comparable to others.
CyrusOne Inc.
Reconciliation of Net Income
(Loss) to FFO and Normalized FFO
(Dollars in millions)
(Unaudited)
Six Months Ended
Three Months Ended
June 30,
Change
June 30,
March 31,
December 31,
September 30,
June 30,
2021
2020
$
%
2021
2021
2020
2020
2020
Reconciliation of Net Income (Loss) to
FFO and Normalized FFO:
Net income (loss)
$
25.6
$
59.7
$
(34.1
)
(57
)
%
$
7.4
$
18.2
$
19.0
$
(37.3
)
$
45.0
Real estate depreciation and
amortization
240.5
213.3
27.2
13
%
121.5
119.0
116.1
110.7
107.5
Impairment losses and loss on asset
disposals
0.6
2.3
(1.7
)
(74
)
%
0.1
0.5
—
8.8
2.4
Funds from Operations ("FFO") - Nareit
defined
$
266.7
$
275.3
$
(8.6
)
(3
)
%
$
129.0
$
137.7
$
135.1
$
82.2
$
154.9
Loss on early extinguishment of debt
—
3.4
(3.4
)
(100
)
%
—
—
—
3.1
—
Gain on marketable equity investment
(2.4
)
(65.1
)
62.7
(96
)
%
—
(2.4
)
(19.7
)
(4.7
)
(50.4
)
Foreign currency and derivative (gains)
losses, net
(16.8
)
8.8
(25.6
)
n/m
(1.4
)
(15.4
)
(4.1
)
22.9
13.9
Amortization of tradenames
0.6
0.6
—
—
%
0.3
0.3
0.4
0.2
0.3
Transaction, acquisition, integration and
other related expenses
0.2
0.6
(0.4
)
(67
)
%
0.1
0.1
1.5
1.6
0.1
Cash severance and management transition
costs
(0.1
)
6.8
(6.9
)
n/m
—
(0.1
)
0.9
6.4
—
Severance-related stock compensation
costs
—
0.1
(0.1
)
(100
)
%
—
—
0.2
2.6
—
Legal claim costs
(4.9
)
0.2
(5.1
)
n/m
(4.9
)
—
—
0.1
0.1
Normalized Funds from Operations
(Normalized FFO)
$
243.3
$
230.7
$
12.6
5
%
$
123.1
$
120.2
$
114.3
$
114.4
$
118.9
Normalized FFO per diluted common
share
$
2.00
$
2.00
$
—
—
%
$
1.00
$
1.00
$
0.94
$
0.96
$
1.03
Weighted average diluted common shares
outstanding
121.6
115.4
6.2
5
%
122.7
120.5
120.6
119.2
115.7
Additional Information:
Amortization of deferred financing costs
and bond premium / discount
3.5
3.6
(0.1
)
(3
)
%
1.9
1.6
1.6
1.6
1.6
Stock-based compensation expense
8.7
6.9
1.8
26
%
4.3
4.4
4.4
4.2
3.4
Non-real estate depreciation and
amortization
4.0
4.0
—
—
%
1.8
2.2
2.0
2.1
2.0
Straight line rent adjustments(a)
(2.0
)
(0.4
)
(1.6
)
n/m
(3.2
)
1.2
(8.0
)
(6.6
)
(2.1
)
Straight line rental expense
adjustments
0.8
(0.5
)
1.3
n/m
0.6
0.2
0.1
(0.1
)
(0.2
)
Above and below market rent
amortization
(0.1
)
(0.2
)
0.1
(50
)
%
—
(0.1
)
(0.1
)
(0.1
)
(0.1
)
Deferred tax benefit
(5.9
)
(4.2
)
(1.7
)
40
%
(3.3
)
(2.6
)
(0.2
)
(2.7
)
(2.2
)
Deferred revenue, primarily installation
revenue(b)
23.9
0.1
23.8
n/m
15.1
8.8
2.3
0.2
2.3
Leasing commissions
(9.0
)
(5.6
)
(3.4
)
61
%
(5.1
)
(3.9
)
(4.3
)
(5.3
)
(3.2
)
Recurring capital expenditures
(6.5
)
(9.9
)
3.4
(34
)
%
(3.9
)
(2.6
)
(0.8
)
(3.1
)
(6.4
)
(a)
Straight line rent adjustments:
Represents the difference between revenue
recognized on a straight line basis under GAAP over the term of the
lease compared to the contractual rental payments. Lease agreements
typically include payments that escalate over the term of the
contract or, to a lesser extent, a ramp period.
(b)
Deferred revenue, primarily
installation revenue:
Represents payments received from
customers in excess of revenue recognized under GAAP. This
primarily relates to specific customer-requested buildouts that
CyrusOne does not include in its basic data center design. The
company charges customers up front for these buildouts rather than
incorporating into rent and billing them over time. The cash
payments for these buildouts are non-recurring, and may vary
significantly from quarter to quarter, but revenue is amortized
over the life of the lease.
CyrusOne Inc.
Market Capitalization Summary,
Reconciliation of Net Debt and Interest Summary
(Unaudited)
Market
Capitalization (as of June 30, 2021)
(dollars in millions)
Shares or
Equivalents
Outstanding
Market Price
as of
June 30, 2021
Market Value
Equivalents
(in millions)
Common shares
124,010,867
$
71.52
$
8,869.3
Net Debt
3,380.9
Total Enterprise Value (TEV)
$
12,250.2
Reconciliation of
Net Debt
June 30,
March 31,
June 30,
(dollars in millions)
2021
2021
2020
Long-term debt(a)
$
3,587.8
$
3,372.7
$
3,191.3
Finance lease liabilities
162.8
28.6
28.8
Less:
Cash and cash equivalents
(369.7
)
(240.9
)
(70.7
)
Net Debt
$
3,380.9
$
3,160.4
$
3,149.4
(a) Excludes adjustment for
deferred financing costs and unamortized bond discounts.
Interest
Summary
Three Months Ended
June 30,
March 31,
June 30,
% Change
(dollars in millions)
2021
2021
2020
Yr/Yr
Interest expense and fees, net
$
18.8
$
18.4
$
17.7
6
%
Amortization of deferred financing costs
and bond premium / discount
1.9
1.6
1.6
19
%
Capitalized interest
(5.9
)
(4.9
)
(5.4
)
9
%
Total interest expense, net
$
14.8
$
15.1
$
13.9
6
%
CyrusOne Inc.
Debt Schedule and Debt
Covenants
(Unaudited)
Debt
Schedule (as of June 30, 2021)
(dollars in millions)
Long-term debt:
Amount
Interest
Rate
Maturity
Date
Revolving credit facility - USD(a)
—
USD LIBOR + 100 bps
March 2025(b)
Term loan(c)
800.0
USD LIBOR + 120 bps(d)
March 2025(e)
2.900% USD senior notes due 2024
600.0
2.900%
November 2024
1.450% EUR senior notes due 2027(f)
593.9
1.450%
January 2027
1.125% EUR senior notes due 2028(f)
593.9
1.125%
May 2028
3.450% USD senior notes due 2029
600.0
3.450%
November 2029
2.150% USD senior notes due 2030
400.0
2.150%
November 2030
Total long-term debt(g)
$
3,587.8
2.03%(h)
Weighted average term of
debt(b)(e):
5.9
years
(a)
Revolving credit facility includes 0.20%
facility fee on entire revolving credit facility commitment of $1.4
billion.
(b)
Assuming exercise of 12-month extension
option.
(c)
$500 million of $800 million synthetically
converted into €451 million pursuant to a USD-EUR cross currency
swap; $300 million swapped pursuant to USD floating to fixed
interest rate swap.
(d)
Interest rate as of June 30, 2021: 1.30%;
weighted average interest rate pursuant to swaps: 1.36%.
(e)
Assumes exercise of two 12-month extension
options on $100 million tranche.
(f)
Amount outstanding is USD-equivalent of
€500 million.
(g)
Excludes adjustment for deferred financing
costs and unamortized bond discounts.
(h)
Weighted average interest rate calculated
using interest rate on swapped amount.
Debt Covenants -
Senior Notes (as of June 30, 2021)
Ratios
Requirement
June 30, 2021
Total Outstanding Indebtedness to Total
Assets
≤ 60%
43%
Secured Indebtedness to Total Assets
≤ 40%
2%
Consolidated EBITDA to Interest
Expense
≥ 1.50x
6.86x
Total Unencumbered Assets to Unsecured
Indebtedness
≥ 150%
236%
CyrusOne Inc.
Colocation Square Footage
(CSF) and CSF Leased
(Unaudited)
As of June 30, 2021
As of March 31, 2021
As of June 30, 2020
Market
Colocation Space (CSF)(a)
(000)
CSF Leased(b)
Colocation Space (CSF)(a)
(000)
CSF Leased(b)
Colocation Space (CSF)(a)
(000)
CSF Leased(b)
Northern Virginia
1,217
91
%
1,166
93
%
1,166
92
%
Dallas
621
67
%
621
66
%
621
71
%
Phoenix
581
99
%
581
97
%
581
92
%
San Antonio
434
97
%
434
97
%
367
96
%
Cincinnati
402
68
%
402
68
%
402
73
%
New York Metro
345
72
%
345
66
%
245
76
%
Houston
308
53
%
308
57
%
308
62
%
Chicago
203
80
%
203
80
%
203
78
%
Austin
106
69
%
106
77
%
106
76
%
Raleigh-Durham
94
100
%
94
94
%
94
96
%
Council Bluffs, Iowa
42
15
%
42
15
%
—
—
%
Total - Domestic
4,351
81
%
4,300
81
%
4,093
83
%
Frankfurt
252
100
%
252
90
%
144
99
%
London
167
90
%
148
83
%
148
70
%
Dublin
76
100
%
—
—
%
—
—
%
Amsterdam
39
100
%
39
100
%
39
100
%
Singapore
3
20
%
3
20
%
3
20
%
Total - International
537
96
%
443
88
%
334
85
%
Total - Portfolio
4,889
83
%
4,743
82
%
4,427
83
%
Stabilized Properties(c)
4,611
86
%
4,422
85
%
4,055
88
%
(a)
CSF represents the GSF at an operating
facility that is currently leased or readily available for lease as
colocation space, where customers locate their servers and other IT
equipment. May not sum to total due to rounding.
(b)
CSF Leased is calculated by dividing CSF
under signed leases for colocation space (whether or not the lease
has commenced billing) by total CSF.
(c)
Stabilized properties include data halls
that have been in service for at least 24 months or are at least
85% leased.
CyrusOne Inc.
2021 Guidance
Category
Previous
2021
Guidance
Revised
2021
Guidance
Total Revenue
$1,135 - 1,175 million
$1,155 - 1,185 million
Lease and Other Revenues from
Customers
$920 - 950 million
$930 - 950 million
Metered Power Reimbursements
$215 - 225 million
$225 - 235 million
Adjusted EBITDA
$570 - 590 million
$575 - 590 million
Normalized FFO per diluted common
share
$3.90 - 4.00
$3.95 - 4.05
Capital Expenditures
$925 - 1,025 million
$875 - 975 million
Development(1)
$905 - 985 million
$855 - 935 million
Recurring
$20 - 40 million
$20 - 40 million
(1)Development capital expenditures
include the acquisition of land for future development.
CyrusOne is updating its guidance for full year 2021, increasing
the lower and upper ends of its guidance ranges for Total Revenue
and Normalized FFO per diluted common share, increasing the lower
end of its guidance range for Adjusted EBITDA, and decreasing the
lower and upper ends of its guidance range for Capital
Expenditures. The annual guidance provided above represents
forward-looking statements, which are based on current economic
conditions, internal assumptions about the Company's existing
customer base, and the supply and demand dynamics of the markets in
which CyrusOne operates. We continue to monitor the global outbreak
of COVID-19 and to take steps to mitigate the potential risks to us
posed by the pandemic. While the impact on our business has not
been significant to date, the length and severity of the effects of
the pandemic remain uncertain and unpredictable and could be
materially adverse to our business, financial condition, results of
operations, cash flows and ability to pay dividends as well as the
market price of our common stock.
CyrusOne does not provide forward-looking guidance for GAAP
financial measures (other than Total Revenue and Capital
Expenditures) or reconciliations for the non-GAAP financial
measures included in the annual guidance provided below due to the
inherent difficulty in forecasting and quantifying certain amounts
that are necessary for such reconciliations, including Net income
(loss) and adjustments that could be made for Transaction,
acquisition, integration and other related expenses, Legal claim
costs, Impairment losses and (gain) loss on asset disposals and
other charges in its reconciliation of historic numbers, the amount
of which, based on historical experience, could be significant.
CyrusOne Inc.
Data Center Portfolio
As of June 30, 2021
(Unaudited)
Gross Square Feet
(GSF)(a)
Powered Shell Available for
Future Development (GSF)(k) (000)
Available Critical Load
Capacity (MW)(l)
Stabilized
Properties(b)
Metro
Area
Annualized
Rent(c)
($000)
Colocation
Space
(CSF)(d)
(000)
CSF Occupied(e)
CSF Leased(f)
Office & Other(g)
(000)
Office & Other
Occupied(h)
Supporting Infrastructure(i)
(000)
Total(j) (000)
Dallas - Carrollton
Dallas
$93,970
428
74
%
74
%
83
46
%
133
644
—
60
Northern Virginia - Sterling V
Northern Virginia
71,621
383
99
%
99
%
11
100
%
145
539
231
69
Northern Virginia - Sterling VI
Northern Virginia
62,906
272
100
%
100
%
35
—
%
—
307
—
57
Frankfurt II
Frankfurt
44,435
90
100
%
100
%
9
100
%
72
171
10
35
Somerset I
New York Metro
37,201
169
93
%
93
%
27
99
%
149
344
28
25
Northern Virginia - Sterling II
Northern Virginia
36,994
159
100
%
100
%
9
100
%
55
223
—
30
San Antonio III
San Antonio
34,275
132
100
%
100
%
9
100
%
43
184
—
24
Chicago - Aurora I
Chicago
33,251
113
98
%
99
%
34
100
%
223
371
27
52
Phoenix - Chandler VI
Phoenix
30,068
148
100
%
100
%
6
100
%
32
187
169
24
Frankfurt III
Frankfurt
29,933
109
100
%
100
%
16
100
%
100
225
—
40
Dallas - Lewisville*
Dallas
27,314
114
74
%
74
%
11
57
%
54
180
—
21
Totowa - Madison**
New York Metro
26,349
51
86
%
96
%
22
86
%
59
133
—
12
Frankfurt I
Frankfurt
25,962
53
97
%
97
%
8
91
%
57
118
—
18
Cincinnati - North Cincinnati
Cincinnati
25,821
65
99
%
99
%
45
79
%
53
163
62
12
Cincinnati - 7th Street***
Cincinnati
24,217
197
46
%
46
%
6
61
%
175
378
46
17
Austin III
Austin
23,089
62
58
%
58
%
15
81
%
21
98
67
11
Phoenix - Chandler I
Phoenix
22,600
74
99
%
100
%
35
12
%
39
147
31
12
Phoenix - Chandler V
Phoenix
22,541
143
95
%
95
%
2
97
%
25
170
13
24
Phoenix - Chandler II
Phoenix
21,661
74
100
%
100
%
6
53
%
26
105
—
12
Houston - Houston West II
Houston
20,620
80
71
%
72
%
4
97
%
55
139
11
12
Phoenix - Chandler III
Phoenix
20,553
68
100
%
100
%
2
—
%
30
101
—
12
Raleigh-Durham I
Raleigh-Durham
20,401
94
98
%
100
%
16
99
%
82
192
235
14
Houston - Houston West I
Houston
20,246
112
49
%
49
%
11
100
%
37
161
3
32
San Antonio I
San Antonio
19,770
44
99
%
99
%
6
83
%
46
96
11
12
Northern Virginia - Sterling III
Northern Virginia
19,633
79
100
%
100
%
7
100
%
34
120
—
15
Northern Virginia - Sterling IV
Northern Virginia
18,001
81
100
%
100
%
7
100
%
34
122
—
15
Wappingers Falls I**
New York Metro
17,843
37
62
%
62
%
20
86
%
15
72
—
7
San Antonio II
San Antonio
17,174
64
100
%
100
%
11
100
%
41
117
—
12
Northern Virginia - Sterling I
Northern Virginia
16,088
78
91
%
92
%
6
63
%
49
132
—
12
London II*
London
16,036
64
100
%
100
%
10
100
%
94
168
3
21
Austin II
Austin
15,613
44
83
%
83
%
2
90
%
22
68
—
7
London I*
London
15,105
38
100
%
100
%
12
56
%
58
107
—
15
San Antonio V
San Antonio
14,479
134
90
%
90
%
14
100
%
38
187
1
21
Phoenix - Chandler IV
Phoenix
12,959
73
100
%
100
%
3
100
%
27
103
—
12
San Antonio IV
San Antonio
12,748
60
100
%
100
%
12
100
%
27
99
—
12
Florence
Cincinnati
10,696
53
99
%
99
%
47
87
%
40
140
—
9
Houston - Galleria
Houston
9,304
63
38
%
38
%
23
21
%
25
112
—
11
Cincinnati - Hamilton*
Cincinnati
9,061
47
64
%
64
%
1
100
%
35
83
—
9
Chicago - Aurora II
Chicago
8,476
77
57
%
58
%
45
2
%
14
136
272
16
Houston - Houston West III
Houston
8,076
53
50
%
50
%
10
13
%
32
95
209
6
London - Great Bridgewater**
London
7,334
10
91
%
91
%
—
—
%
1
11
—
1
London III*
London
6,806
39
100
%
100
%
2
100
%
45
86
—
12
Norwalk I**
New York Metro
6,804
13
100
%
100
%
10
88
%
41
63
83
3
Stamford - Riverbend**
New York Metro
5,062
20
22
%
22
%
—
—
%
8
28
—
5
Cincinnati - Mason
Cincinnati
4,738
34
100
%
100
%
26
98
%
17
78
—
4
Dallas - Allen
Dallas
4,466
79
20
%
20
%
—
—
%
58
137
204
6
Amsterdam I
Amsterdam
4,403
39
100
%
100
%
15
100
%
40
94
207
4
Chicago - Lombard
Chicago
2,326
14
50
%
50
%
4
79
%
12
30
29
2
Totowa - Commerce**
New York Metro
799
—
—
%
—
%
20
44
%
6
26
—
—
Cincinnati - Blue Ash*
Cincinnati
516
6
36
%
36
%
7
100
%
2
15
—
1
Singapore - Inter Business Park**
Singapore
381
3
20
%
20
%
—
—
%
—
3
—
1
Dublin
Dublin
—
76
100
%
100
%
19
100
%
32
126
78
12
Stabilized Properties - Total
$1,060,723
4,611
86
%
86
%
762
68
%
2,557
7,930
2,030
883
CyrusOne Inc.
Data Center Portfolio
As of June 30, 2021
(Unaudited)
Gross Square Feet
(GSF)(a)
Powered Shell Available for
Future Development (GSF)(k) (000)
Available Critical Load
Capacity (MW)(l)
Metro
Area
Annualized
Rent(c)
($000)
Colocation
Space
(CSF)(d)
(000)
CSF Occupied(e)
CSF Leased(f)
Office & Other(g)
(000)
Office & Other
Occupied(h)
Supporting Infrastructure(i)
(000)
Total(j) (000)
Stabilized Properties - Total
$
1,060,723
4,611
86
%
86
%
762
68
%
2,557
7,930
2,030
883
Pre-Stabilized
Properties(b)
Northern Virginia - Sterling VIII
Northern Virginia
11,778
61
59
%
59
%
4
—
%
25
90
—
12
Northern Virginia - Sterling IX
Northern Virginia
3,668
104
18
%
33
%
1
—
%
68
173
72
21
Council Bluffs I
Iowa
1,915
42
12
%
15
%
14
—
%
18
73
42
5
Somerset (DH #12 and #13)
New York Metro
1,895
54
—
%
—
%
9
—
%
—
63
—
5
London II*(DH #3)
London
—
17
—
%
—
%
—
—
%
—
17
—
7
All Properties - Total
$
1,079,979
4,889
82
%
83
%
791
65
%
2,667
8,346
2,144
933
*
Indicates properties in which we hold a
leasehold interest in the building shell and land. All data center
infrastructure has been constructed by us and is owned by us.
**
Indicates properties in which we hold a
leasehold interest in the building shell, land, and all data center
infrastructure.
***
The information provided for the
Cincinnati - 7th Street property includes data for two facilities,
one of which we lease and one of which we own.
(a)
Represents the total square feet of a
building under lease or available for lease based on engineers'
drawings and estimates but does not include space held for
development or space used by CyrusOne.
(b)
Stabilized properties include data halls
that have been in service for at least 24 months or are at least
85% leased. Pre-stabilized properties include data halls that have
been in service for less than 24 months and are less than 85%
leased.
(c)
Represents monthly contractual rent
(defined as cash rent including customer reimbursements for metered
power) under existing customer leases as of June 30, 2021
multiplied by 12. For the month of June 2021, customer
reimbursements were $208.4 million annualized and consisted of
reimbursements by customers across all facilities with separately
metered power. Customer reimbursements under leases with separately
metered power vary from month-to-month based on factors such as our
customers' utilization of power and the suppliers' pricing of
power. From July 1, 2019 through June 30, 2021, customer
reimbursements under leases with separately metered power
constituted between 14.9% and 19.4% of annualized rent. After
giving effect to abatements, free rent and other straight-line
adjustments, our annualized effective rent as of June 30, 2021 was
$1,074.2 million. Our annualized effective rent was lower than our
annualized rent as of June 30, 2021 because our negative
straight-line and other adjustments and amortization of deferred
revenue exceeded our positive straight-line adjustments due to
factors such as the timing of contractual rent escalations and
customer payments for services.
(d)
CSF represents the GSF at an operating
facility that is currently leased or readily available for lease as
colocation space, where customers locate their servers and other IT
equipment.
(e)
Percent occupied is determined based on
CSF billed to customers under signed leases as of June 30, 2021
divided by total CSF. Leases signed but that have not commenced
billing as of June 30, 2021 are not included.
(f)
Percent leased is calculated by dividing
CSF under signed leases for colocation space (whether or not the
lease has commenced billing) by total CSF.
(g)
Represents the GSF at an operating
facility that is currently leased or readily available for lease as
space other than CSF, which is typically office and other
space.
(h)
Percent occupied is determined based on
Office & Other space being billed to customers under signed
leases as of June 30, 2021 divided by total Office & Other
space. Leases signed but not commenced as of June 30, 2021 are not
included.
(i)
Represents infrastructure support space,
including mechanical, telecommunications and utility rooms, as well
as building common areas.
(j)
Represents the GSF at an operating
facility that is currently leased or readily available for lease.
This excludes existing vacant space held for development.
(k)
Represents space that is under roof that
could be developed in the future for GSF, rounded to the nearest
1,000.
(l)
Critical power capacity represents the
gross aggregate of UPS power installed and available to provide
multiple redundancy levels for lease and exclusive use by
customers. Capacity is stated in megawatts as represented by UPS
manufacturer nameplate ratings and does not include ancillary UPS
capacity not configured for the direct support of leased customer
critical IT load (e.g. dedicated office power, office disaster
recovery UPS, or UPS utilized by CyrusOne for infrastructure
control circuits). Does not sum to total due to rounding.
CyrusOne Inc.
GSF Under Development
As of June 30, 2021
(Dollars in millions)
(Unaudited)
GSF Under
Development(a)
Under Development
Costs(b)
Facilities
Metro Area
Estimated Completion
Date
Colocation Space
(CSF) (000)
Office & Other
(000)
Supporting
Infrastructure (000)
Powered Shell(c) (000)
Total (000)
Critical Load MW
Capacity(d)
Actual to
Date(e)
Estimated
Costs to
Completion(f)
Total
Cincinnati - North Cincinnati
Cincinnati
3Q'21
3
—
—
—
3
2.0
$3
$6-9
$9-12
Paris I(g)
Paris
3Q'21
26
4
15
201
246
6.0
45
8-21
53-66
Norwalk I
New York
3Q'21
4
—
—
—
4
2.0
4
4-5
8-9
Frankfurt III (DH #4)
Frankfurt
3Q'21
15
3
15
—
33
4.0
10
3-5
13-15
Phoenix - Chandler VII
Phoenix
3Q'21
62
10
38
—
110
15.0
5
65-75
70-80
Phoenix - Chandler V
Phoenix
3Q'21
—
—
—
—
—
3.0
2
9-12
11-14
Northern Virginia - Sterling IX
Northern Virginia
3Q'21
51
8
2
—
61
6.0
17
7-11
24-28
London I
London
4Q'21
8
—
—
—
8
3.0
—
10-15
10-15
London IV
London
2Q'22
38
7
39
101
186
6.0
—
48-68
48-68
Frankfurt IV
Frankfurt
4Q'22
73
11
39
—
122
17.0
3
118-137
121-140
Total
280
43
148
303
773
64.0
$89
$278-358
$367-447
(a)
Represents GSF at a facility for which, as
of June 30, 2021, activities have commenced or are expected to
commence in the next 2 quarters to prepare the space for its
intended use. Estimates and timing are subject to change. May not
sum to total due to rounding.
(b)
London development costs are
GBP-denominated and shown as USD-equivalent based on an exchange
rate of 1.38 as of June 30, 2021. Frankfurt and Paris development
costs are EUR-denominated and shown as USD-equivalent based on an
exchange rate of 1.19 as of June 30, 2021.
(c)
Represents GSF under construction that,
upon completion, will be powered shell available for future
development into GSF.
(d)
Critical power capacity represents the
gross aggregate of UPS power installed and available to provide
multiple redundancy levels for lease and exclusive use by
customers. Capacity is stated in megawatts as represented by UPS
manufacturer nameplate ratings and does not include ancillary UPS
capacity not configured for the direct support of leased customer
critical IT load.
(e)
Actual to date is the cash investment as
of June 30, 2021. There may be accruals above this amount for work
completed, for which cash has not yet been paid.
(f)
Represents management’s estimate of the
total costs required to complete the current GSF under development.
There may be an increase in costs if customers require greater
power density.
(g)
Paris I is 100% preleased, with
development planned in phases through mid-2026 to align with
customer commitments.
Capital Expenditures - Investment in Real
Estate(a)
Three Months Ended
Six Months Ended
(dollars in millions)
June 30, 2021
June 30, 2021
Capital expenditures - investment in real
estate
$182.4
$355.2
(a) Excludes recurring capital
expenditures.
CyrusOne Inc.
Land Available for Future
Development (Acres)
As of June 30, 2021
(Unaudited)
As of
Market
June 30, 2021
Amsterdam
8
Austin
22
Chicago
23
Cincinnati
98
Council Bluffs, Iowa
10
Dallas
57
Dublin
15
Houston
20
London
33
Madrid
5
Northern Virginia
24
Phoenix
96
Quincy, Washington
48
San Antonio
12
Santa Clara
23
Total Available(a)
493
Book Value of Total Available
$
265.9
million
(a) Does not sum to total due to
rounding.
CyrusOne Inc.
Leasing Statistics - Lease
Signings
As of June 30, 2021
(Unaudited)
Period
Number
of Leases(a)
Total CSF Signed(b)
Total kW Signed(c)
Total MRR
Signed (000)(d)
Weighted Average
Lease Term(e)
2Q'21
370
345,000
20,855
$3,487
99
Prior 4Q Avg.
402
120,750
21,382
$2,756
93
1Q'21
414
156,000
28,493
$2,947
116
4Q'20
383
162,000
31,321
$4,112
117
3Q'20
415
15,000
3,756
$894
54
2Q'20(f)
396
150,000
21,956
$3,070
84
(a)
Number of leases represents each agreement
with a customer. A lease agreement could include multiple spaces,
and a customer could have multiple leases.
(b)
CSF represents the GSF at an operating
facility that is leased as colocation space, where customers locate
their servers and other IT equipment.
(c)
Represents maximum contracted kW that
customers may draw during lease period, and subject to full build
out of projects subject to additional conditions. Additionally, we
can develop flexible solutions for our customers at multiple
resiliency levels, and the kW signed is unadjusted for this
factor.
(d)
Monthly recurring rent is defined as the
average monthly contractual rent during the term of the lease. It
includes the monthly impact of installation charges of
approximately $0.7 million in 2Q'21 and $0.2 million in 2Q'20,
3Q'20, 4Q'20 and 1Q'21.
(e)
Calculated on a CSF-weighted basis.
(f)
Includes exercise of previously disclosed
(in 3Q’19) paid reservation for 4.5 MW and 30,000 CSF totaling
approximately $5.5 million in annualized GAAP revenue in 2Q’20.
CyrusOne Inc.
New MRR Signed - Existing vs.
New Customers
As of June 30, 2021
(Dollars in thousands)
(Unaudited)
New MRR Signed(a) 3Q'19(b) 4Q'19
1Q'20 2Q'20 3Q'20 4Q'20 1Q'21
2Q'21 Existing Customers
$2,849
$843
$4,756
$2,872
$841
$3,881
$2,827
$3,332
New Customers
$1,007
$220
$238
$198
$53
$231
$120
$155
Total
$3,856
$1,063
$4,994
$3,070
$894
$4,112
$2,947
$3,487
% from Existing Customers
74%
79%
95%
94%
94%
94%
96%
96%
(a)
Monthly recurring rent is defined as the
average monthly contractual rent during the term of the lease. It
includes the monthly impact of installation charges of
approximately $0.7 million in 2Q'21, $0.3 million in 1Q'20, $0.2
million in 4Q'19, 2Q'20, 3Q'20, 4Q'20, and 1Q'21, and $0.1 million
in 3Q'19.
(b)
3Q'19 leasing statistics updated from
those reported in 3Q'19-1Q'20 earnings materials to remove the
prior inclusion of the paid reservation that was exercised in 2Q'20
and included in the 2Q'20 leasing results (30,000 CSF, 4.5 MW, and
approximately $0.5 million in monthly recurring rent).
CyrusOne Inc.
Customer Sector
Diversification(a)
As of June 30, 2021
(Unaudited)
Principal Customer
Industry
Number of
Locations
Annualized Rent(b)
(000)
Percentage of Portfolio
Annualized Rent(c)
Weighted Average Remaining
Lease Term in Months(d)
1
Information Technology
12
$
217,526
20.2
%
89.0
2
Information Technology
11
79,548
7.4
%
20.8
3
Information Technology
5
72,380
6.7
%
36.2
4
Information Technology
5
58,946
5.5
%
38.1
5
Information Technology
5
43,642
4.0
%
36.1
6
Information Technology
9
33,210
3.1
%
39.7
7
Information Technology
3
22,058
2.0
%
29.3
8
Financial Services
1
19,818
1.8
%
117.0
9
Healthcare
2
16,309
1.5
%
78.0
10
Research and Consulting Services
3
14,958
1.4
%
16.0
11
Information Technology
7
13,054
1.2
%
30.8
12
Financial Services
2
11,392
1.1
%
36.9
13
Financial Services
4
11,241
1.0
%
81.2
14
Information Technology
1
9,789
0.9
%
32.6
15
Financial Services
4
9,271
0.9
%
79.7
16
Telecommunication Services
1
8,656
0.8
%
77.0
17
Telecommunication Services
2
8,639
0.8
%
8.5
18
Information Technology
1
7,910
0.7
%
6.0
19
Telecommunication Services
7
7,608
0.7
%
21.5
20
Information Technology
3
6,934
0.6
%
35.4
$
672,887
62.3
%
55.3
(a)
Customers and their affiliates are
consolidated.
(b)
Represents monthly contractual rent
(defined as cash rent including customer reimbursements for metered
power) under existing customer leases as of June 30, 2021,
multiplied by 12. For the month of June 2021, customer
reimbursements were $208.4 million annualized and consisted of
reimbursements by customers across all facilities with separately
metered power. Customer reimbursements under leases with separately
metered power vary from month-to-month based on factors such as our
customers' utilization of power and the suppliers' pricing of
power. From July 1, 2019 through June 30, 2021, customer
reimbursements under leases with separately metered power
constituted between 14.9% and 19.4% of annualized rent. After
giving effect to abatements, free rent and other straight-line
adjustments, our annualized effective rent as of June 30, 2021 was
$1,074.2 million. Our annualized effective rent was lower than our
annualized rent as of June 30, 2021 because our negative
straight-line and other adjustments and amortization of deferred
revenue exceeded our positive straight-line adjustments due to
factors such as the timing of contractual rent escalations and
customer payments for services.
(c)
Represents the customer’s total annualized
rent divided by the total annualized rent in the portfolio as of
June 30, 2021, which was approximately $1,080.0 million.
(d)
Weighted average based on customer’s
percentage of total annualized rent expiring and is as of June 30,
2021, assuming that customers exercise no renewal options and
exercise all early termination rights that require payment of less
than 50% of the remaining rents. Early termination rights that
require payment of 50% or more of the remaining lease payments are
not assumed to be exercised because such payments approximate the
profitability margin of leasing that space to the customer, such
that we do not consider early termination to be economically
detrimental to us.
CyrusOne Inc.
Lease Distribution
As of June 30, 2021
(Unaudited)
GSF Under Lease(a)
Number of
Customers(b)
Percentage of
All Customers
Total Leased GSF(c)
(000)
Percentage of
Portfolio
Leased GSF
Annualized
Rent(d) (000)
Percentage of
Annualized Rent
0-999
618
66
%
128
2
%
$
100,551
9
%
1000-2499
121
13
%
190
3
%
48,052
4
%
2500-4999
60
6
%
216
4
%
42,082
4
%
5000-9999
49
5
%
335
5
%
61,491
6
%
10000+
91
10
%
5,363
86
%
827,802
77
%
Total
939
100
%
6,231
100
%
$
1,079,979
100
%
(a)
Represents all leases in our portfolio,
including colocation, office and other leases.
(b)
Represents the number of customers
occupying data center, office and other space as of June 30, 2021.
This may vary from total customer count as some customers may be
under contract but have yet to occupy space.
(c)
Represents the total square feet at a
facility under lease and that has commenced billing, excluding
space held for development or space used by CyrusOne. A customer’s
leased GSF is estimated based on such customer’s direct CSF or
office and light-industrial space plus management’s estimate of
infrastructure support space, including mechanical,
telecommunications and utility rooms, as well as building common
areas.
(d)
Represents monthly contractual rent
(defined as cash rent including customer reimbursements for metered
power) under existing customer leases as of June 30, 2021,
multiplied by 12. For the month of June 2021, customer
reimbursements were $208.4 million annualized and consisted of
reimbursements by customers across all facilities with separately
metered power. Customer reimbursements under leases with separately
metered power vary from month-to-month based on factors such as our
customers' utilization of power and the suppliers' pricing of
power. From July 1, 2019 through June 30, 2021, customer
reimbursements under leases with separately metered power
constituted between 14.9% and 19.4% of annualized rent. After
giving effect to abatements, free rent and other straight-line
adjustments, our annualized effective rent as of June 30, 2021 was
$1,074.2 million. Our annualized effective rent was lower than our
annualized rent as of June 30, 2021 because our negative
straight-line and other adjustments and amortization of deferred
revenue exceeded our positive straight-line adjustments due to
factors such as the timing of contractual rent escalations and
customer payments for services.
CyrusOne Inc.
Lease Expirations
As of June 30, 2021
(Unaudited)
Year(a)
Number of Leases
Expiring(b)
Total
GSF Expiring (000)
Percentage of
Total GSF
Annualized Rent(c)
(000)
Percentage of
Annualized Rent
Annualized Rent at
Expiration(d) (000)
Percentage of
Annualized Rent
at Expiration
Available
2,115
25
%
Month-to-Month
1,757
153
2
%
$
56,316
5
%
$
56,699
5
%
2021
1,907
471
6
%
96,461
9
%
96,806
8
%
2022
2,794
886
11
%
169,021
16
%
185,096
16
%
2023
1,540
1,154
14
%
183,143
17
%
189,980
16
%
2024
836
654
8
%
127,022
12
%
134,898
11
%
2025
198
264
3
%
65,919
6
%
75,194
6
%
2026
119
749
9
%
126,944
12
%
138,435
12
%
2027
51
622
7
%
99,573
9
%
114,230
10
%
2028
27
304
4
%
39,327
3
%
45,505
4
%
2029
8
83
1
%
7,078
1
%
8,250
1
%
2030
8
177
2
%
15,567
1
%
29,025
2
%
2031 - Thereafter
29
715
8
%
93,607
9
%
106,144
9
%
Total
9,274
8,346
100
%
$
1,079,979
100
%
$
1,180,261
100
%
(a)
Leases that were auto-renewed prior to
June 30, 2021 are shown in the calendar year in which their current
auto-renewed term expires. Unless otherwise stated in the
footnotes, the information set forth in the table assumes that
customers exercise no renewal options and exercise all early
termination rights that require payment of less than 50% of the
remaining rents. Early termination rights that require payment of
50% or more of the remaining lease payments are not assumed to be
exercised.
(b)
Number of leases represents each agreement
with a customer. A lease agreement could include multiple spaces
and a customer could have multiple leases.
(c)
Represents monthly contractual rent
(defined as cash rent including customer reimbursements for metered
power) under existing customer leases as of June 30, 2021,
multiplied by 12. For the month of June 2021, customer
reimbursements were $208.4 million annualized and consisted of
reimbursements by customers across all facilities with separately
metered power. Customer reimbursements under leases with separately
metered power vary from month-to-month based on factors such as our
customers' utilization of power and the suppliers' pricing of
power. From July 1, 2019 through June 30, 2021, customer
reimbursements under leases with separately metered power
constituted between 14.9% and 19.4% of annualized rent. After
giving effect to abatements, free rent and other straight-line
adjustments, our annualized effective rent as of June 30, 2021 was
$1,074.2 million. Our annualized effective rent was lower than our
annualized rent as of June 30, 2021 because our negative
straight-line and other adjustments and amortization of deferred
revenue exceeded our positive straight-line adjustments due to
factors such as the timing of contractual rent escalations and
customer payments for services.
(d)
Represents the final monthly contractual
rent under existing customer leases that had commenced as of June
30, 2021, multiplied by 12.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210728006006/en/
Investor Relations Michael Schafer Vice President,
Capital Markets & Investor Relations 972-350-0060
investorrelations@cyrusone.com
CyrusOne (NASDAQ:CONE)
Historical Stock Chart
From Mar 2024 to Apr 2024
CyrusOne (NASDAQ:CONE)
Historical Stock Chart
From Apr 2023 to Apr 2024