Signed $104.3 Million in Annualized GAAP
Revenue and 101 Megawatts in 4Q’21
CyrusOne Inc. (NASDAQ: CONE), a premier global data center REIT,
today announced fourth quarter and full year 2021 earnings.
Highlights
Category
4Q’21
vs.
4Q’20
FY’21
vs.
FY’20
Revenue
$318.4 million
19%
$1,205.7 million
17%
Net (loss) income
$(7.0) million
n/m
$25.3 million
(39)%
Adjusted EBITDA
$148.4 million
9%
$579.8 million
8%
Normalized FFO
$123.9 million
8%
$494.4 million
8%
Net (loss) income per diluted common
share
$(0.06)
n/m
$0.20
(43)%
Normalized FFO per diluted common
share
$0.97
3%
$3.99
2%
- Leased 101 megawatts (“MW”) and 530,000 colocation square feet
(“CSF”) in the fourth quarter, totaling $104.3 million in
annualized GAAP revenue, all quarterly company records
- Backlog of approximately $177 million in annualized GAAP
revenue as of the end of the fourth quarter
- Settled forward sale agreements in the fourth quarter that were
entered into in 2020 and 2021, resulting in net proceeds of
approximately $190 million, which were used for general corporate
purposes
- The Company has approximately $113 million in remaining
available forward equity
- On November 15, 2021, the Company, KKR and Global
Infrastructure Partners (“GIP”) announced a definitive agreement
pursuant to which KKR and GIP will acquire all outstanding shares
of common stock of CyrusOne (the “Merger”)
- CyrusOne stockholders approved the Merger on February 1,
2022
- As previously announced, subsequent to the end of the quarter
CyrusOne entered into a definitive agreement with DataBank Holdings
Ltd. for the sale of the Company’s four Houston data center assets
- Total consideration for the transaction will be approximately
$670 million, subject to a net working capital adjustment, with
proceeds from the sale expected to fund future development
projects
- The third quarter 2021 annualized run-rate cash NOI represented
by these properties, including the future first-year lease payments
that will be made by CyrusOne, aggregate $34.8 million, implying a
transaction cap rate of 5.19%
“We closed out 2021 with the strongest leasing quarter in the
history of the company, with demand driven primarily by hyperscale
customers across our U.S. markets, and we are well positioned for
continued growth with a company-record quarter-end backlog totaling
more than $175 million in annualized revenue,” said David Ferdman,
interim president and chief executive officer of CyrusOne. “We are
also excited to execute on our capital recycling initiative,
further optimizing our portfolio as we redeploy capital into
accretive developments across core markets with diverse hyperscale
and enterprise demand in the U.S. and Europe.”
Fourth Quarter 2021 Financial Results
Revenue was $318.4 million for the fourth quarter, compared to
$268.4 million for the same period in 2020, an increase of 19%. The
increase in revenue was driven primarily by a 10% increase in
occupied CSF and higher metered power reimbursements.
Net loss was $(7.0) million for the fourth quarter, compared to
Net income of $19.0 million in the same period in 2020. Net loss
for the fourth quarter included $20.9 million in Transaction,
acquisition, integration and other related expenses associated with
the pending Merger. Additionally, General and administrative
expenses for the fourth quarter of 2021 included $5.8 million
related to losses in Frankfurt, London, and Paris for settlements
with subcontractors associated with the insolvency of a general
contractor. These impacts were partially offset by a $12.4 million
gain associated with a change in fair value on the undesignated
portion of the Company’s net investment hedge (compared to a $4.1
million gain in the fourth quarter of 2020) as well as a $3.2
million gain related to the sale of certain Texas fiber
connectivity assets. Additionally, in the fourth quarter of 2020,
the Company recognized a $19.7 million gain on the Company’s equity
investment in GDS Holdings Limited. Net loss per diluted common
share1 was $(0.06) in the fourth quarter of 2021, compared to Net
income per diluted common share of $0.15 in the same period in
2020.
Net operating income (“NOI”)2 was $178.3 million for the fourth
quarter, compared to $158.1 million in the same period in 2020, an
increase of 13%. Adjusted EBITDA3 was $148.4 million for the fourth
quarter, compared to $135.9 million in the same period in 2020, an
increase of 9%.
Normalized Funds From Operations (“Normalized FFO”)4 was $123.9
million for the fourth quarter, compared to $114.3 million in the
same period in 2020, an increase of 8%. Normalized FFO per diluted
common share was $0.97 in the fourth quarter of 2021, compared to
$0.94 in the same period in 2020, an increase of 3%.
Leasing Activity
CyrusOne leased approximately 101 MW of power and 530,000 CSF in
the fourth quarter, representing approximately $8.7 million in
monthly recurring rent, inclusive of the monthly impact of
installation charges. The leasing for the quarter represents
approximately $104.3 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 83 months (6.9
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 fourth quarter
was 0.3%, compared to 0.9% for the same period in 2020.
Percentage CSF Leased
In the fourth quarter, the Company completed construction on
48,000 CSF and 9 MW of power capacity across Northern Virginia and
London. Percentage CSF leased7 as of the end of the fourth quarter
was 86% for stabilized properties8 and 83% overall.
Balance Sheet and Liquidity
As of December 31, 2021, the Company had gross asset value9
totaling approximately $9.6 billion, an increase of approximately
11% over gross asset value as of December 31, 2020. CyrusOne had
$3.53 billion of long-term debt10, $346 million of cash and cash
equivalents, and approximately $1.39 billion available under its
unsecured revolving credit facility as of December 31, 2021. Net
debt10 was $3.34 billion as of December 31, 2021, representing
approximately 22% of the Company's total enterprise value as of
December 31, 2021 of $15.0 billion. This represented approximately
5.4x 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 $1.85
billion as of December 31, 2021.
During the fourth quarter of 2021, the Company settled forward
sale agreements entered into in 2020 and 2021, resulting in net
proceeds of approximately $190 million, which were used for general
corporate purposes. The Company has approximately $113 million in
remaining available forward equity (no portion of these forward
sale agreements has been settled as of February 16, 2022). As of
December 31, 2021, there was approximately $513 million in
remaining availability under the ATM equity program.
Dividend
On October 27, 2021, the Company announced a dividend of $0.52
per share of common stock for the fourth quarter of 2021. The
dividend was paid on January 7, 2022, to stockholders of record at
the close of business on January 3, 2022.
Additionally, as permitted by the terms of Merger agreement,
today the Company is announcing a dividend of $0.52 per share of
common stock for the first quarter of 2022. The dividend will be
paid on April 8, 2022, to stockholders of record at the close of
business on March 28, 2022. The dividend is conditioned upon and
will only be payable if the merger has not closed prior to the
close of business on the record date.
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) risks related to the pending Merger, including
but not limited to that the Merger may not be completed in a timely
manner or at all and the failure to realize the anticipated
benefits of the Merger; (ii) risks related to the sale of the
Company’s four Houston data center assets, including but not
limited to that the sale may not be completed in a timely manner or
at all and the failure to realize the anticipated benefits of the
sale; (iii) the Merger or asset sale diverting management’s
attention from the Company’s ongoing business operations; (iv) the
potential widespread and highly uncertain impact of public health
outbreaks, epidemics and pandemics, such as the COVID-19 pandemic;
(v) loss of key customers; (vi) 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; (vii) economic downturn, natural disaster or oversupply of
data centers in the limited geographic areas that we serve; (viii)
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; (ix) 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; (x) loss of access to key third-party
service providers and suppliers; (xi) risks of loss of power or
cooling which may interrupt our services to our customers; (xii)
inability to identify and complete acquisitions and operate
acquired properties; (xiii) our failure to obtain necessary outside
financing on favorable terms, or at all; (xiv) restrictions in the
instruments governing our indebtedness; (xv) risks related to
environmental, social and governance matters; (xvi) unknown or
contingent liabilities related to our acquisitions; (xvii)
significant competition in our industry; (xviii) recent turnover,
or the further loss of, any of our key personnel; (xix) risks
associated with real estate assets and the industry; (xx) 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; (xxi) REIT distribution
requirements could adversely affect our ability to execute our
business plan; (xxii) insufficient cash available for distribution
to stockholders; (xxiii) future offerings of debt may adversely
affect the market price of our common stock; (xxiv) 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; (xxv) market price and volume of stock
could be volatile; (xxvi) risks related to regulatory changes
impacting our customers and demand for colocation space in
particular geographies; (xxvii) 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; (xxviii)
expanded and widened price increases in certain selective materials
for data center development capital expenditures due to
international trade negotiations; (xxix) a failure to comply with
anti-corruption laws and regulations; (xxx) legislative or other
actions relating to taxes; (xxxi) any significant security breach
or cyber-attack on us or our key partners or customers; (xxxii) the
ongoing trade conflict between the United States and the People’s
Republic of China; (xxxiii) 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 (xxxiv) 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 (loss) income 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 (loss) income per diluted common share is defined as Net
(loss) income divided by the weighted average diluted common shares
outstanding for the period, which were 127.9 million for the fourth
quarter of 2021 and 120.6 million for the fourth 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 (loss) 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 (loss) 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 (loss) income 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 (loss) income 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; New accounting
standards and regulatory compliance and the related system
implementation costs; 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 (loss) income 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. In addition, pursuant to the Merger Agreement, we have
agreed to various specific restrictions relating to the conduct of
our business between the date of the Merger Agreement and the time
at which the Merger becomes effective, including but not limited
to, agreeing to not to (i) issue or sell shares of our capital
stock, partnership interests or other equity or voting interests,
(ii) issue or sell any debt securities or warrants or other rights
to acquire any debt securities of us and our wholly owned
subsidiaries and (iii) incur or assume any indebtedness, in each
case subject to the terms of the Merger Agreements and any
exceptions set forth therein.
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
CyrusOne Inc.
Summary of Financial
Data
(Dollars in millions, except
per share amounts)
Three Months
December 31,
September 30,
December 31,
Growth %
2021
2021
2020
Yr/Yr
Revenue
$
318.4
$
304.1
$
268.4
19
%
Net operating income
178.3
170.7
158.1
13
%
Net (loss) income
(7.0
)
6.7
19.0
n/m
Funds from Operations ("FFO") - Nareit
defined
115.3
132.3
135.1
(15
) %
Normalized Funds from Operations
("Normalized FFO")
123.9
127.2
114.3
8
%
Weighted average number of common shares
outstanding - diluted for Normalized FFO
127.9
124.3
120.6
6
%
Net (loss) income per share - basic
$
(0.06
)
$
0.05
$
0.15
n/m
Net (loss) income per share - diluted
$
(0.06
)
$
0.05
$
0.15
n/m
Normalized FFO per diluted common
share
$
0.97
$
1.02
$
0.94
3
%
Adjusted EBITDA
$
148.4
$
149.2
$
135.9
9
%
Adjusted EBITDA as a % of Revenue
46.6
%
49.1
%
50.6
%
(4.0) pts
As of
December 31,
September 30,
December 31,
Growth %
2021
2021
2020
Yr/Yr
Balance Sheet Data
Gross investment in real estate
$
7,762.0
$
7,635.4
$
7,033.4
10
%
Accumulated depreciation
(2,184.1
)
(2,080.4
)
(1,767.9
)
24
%
Total investment in real estate, net
5,577.9
5,555.0
5,265.5
6
%
Cash and cash equivalents
346.3
456.4
271.4
28
%
Market value of common equity
11,623.6
9,824.4
8,810.4
32
%
Long-term debt
3,534.4
3,559.0
3,446.1
3
%
Net debt
3,345.0
3,259.8
3,203.8
4
%
Total enterprise value
14,968.6
13,084.2
12,014.2
25
%
Net debt to LQA Adjusted EBITDA(a)
5.4x
5.0x
5.0x
0.4x
Dividend Activity
Dividends per share
$
0.52
$
0.52
$
0.51
2
%
Portfolio Statistics
Data centers
55
56
53
4
%
Stabilized CSF (000)
4,833
4,789
4,398
10
%
Stabilized CSF % leased
86
%
86
%
87
%
(1) pts
Total CSF (000)
5,094
5,050
4,665
9
%
Total CSF % leased
83
%
84
%
84
%
(1) pts
Total GSF (000)
8,646
8,601
8,038
8
%
(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
Twelve Months
Ended December 31,
Change
Ended December 31,
Change
2021
2020
$
%
2021
2020
$
%
Revenue(a)
$
318.4
$
268.4
$
50.0
19
%
$
1,205.7
$
1,033.5
$
172.2
17
%
Operating expenses:
Property operating expenses
140.1
110.3
29.8
27
%
531.1
411.6
119.5
29
%
Sales and marketing
3.8
5.3
(1.5
)
(28
) %
14.9
18.3
(3.4
)
(19
) %
General and administrative
31.5
22.4
9.1
41
%
101.9
99.3
2.6
3
%
Depreciation and amortization
126.6
118.5
8.1
7
%
499.2
449.4
49.8
11
%
Transaction, acquisition, integration and
other related expenses
20.9
1.5
19.4
n/m
21.3
3.7
17.6
n/m
Impairment losses and (gain) loss on asset
disposals, net
(2.7
)
—
(2.7
)
n/m
(2.0
)
11.1
(13.1
)
n/m
Total operating expenses
320.2
258.0
258.0
24
%
1,166.4
993.4
173.0
17
%
Operating (loss) income
(1.8
)
10.4
(208.0
)
n/m
39.3
40.1
(0.8
)
(2
) %
Interest expense, net
(17.4
)
(14.5
)
(2.9
)
20
%
(64.6
)
(57.7
)
(6.9
)
12
%
Gain on marketable equity investment
—
19.7
(19.7
)
(100
) %
2.4
89.5
(87.1
)
(97
) %
Loss on early extinguishment of debt
—
—
—
n/m
—
(6.5
)
6.5
(100
) %
Foreign currency and derivative gains
(losses), net
12.4
4.1
8.3
n/m
43.6
(27.6
)
71.2
n/m
Other expense
(0.2
)
—
(0.2
)
n/m
(0.3
)
—
(0.3
)
n/m
Net (loss) income before income
taxes
(7.0
)
19.7
(222.5
)
n/m
20.4
37.8
(17.4
)
(46
) %
Income tax (expense) benefit
—
(0.7
)
0.7
(100
) %
4.9
3.6
1.3
36
%
Net (loss) income
$
(7.0
)
$
19.0
$
(26.0
)
n/m
$
25.3
$
41.4
$
(16.1
)
(39
) %
Net (loss) income per share -
basic
$
(0.06
)
$
0.15
$
(0.21
)
n/m
$
0.20
$
0.35
$
(0.15
)
(43
) %
Net (loss) income per share -
diluted
$
(0.06
)
$
0.15
$
(0.21
)
n/m
$
0.20
$
0.35
$
(0.15
)
(43
) %
(a)
Revenue includes metered power
reimbursements of $70.4 million and $44.9 million for the three
months ended December 31, 2021 and 2020, respectively, and
includes metered power reimbursements of $259.0 million and $161.4
million for the twelve months ended December 31, 2021 and
2020, respectively.
CyrusOne Inc.
Condensed Consolidated Balance
Sheets
(Dollars in millions)
(Unaudited)
December 31,
December 31,
Change
2021
2020
$
%
Assets
Investment in real estate:
Land
$
210.5
$
208.8
$
1.7
1
%
Buildings and improvements
2,344.0
2,035.2
308.8
15
%
Equipment
4,140.3
3,538.9
601.4
17
%
Gross operating real estate
6,694.8
5,782.9
911.9
16
%
Less accumulated depreciation
(2,184.1
)
(1,767.9
)
(416.2
)
24
%
Net operating real estate
4,510.7
4,015.0
495.7
12
%
Construction in progress, including land
under development
765.9
982.2
(216.3
)
(22
) %
Land held for future development
301.3
268.3
33.0
12
%
Total investment in real estate, net
5,577.9
5,265.5
312.4
6
%
Cash and cash equivalents
346.3
271.4
74.9
28
%
Rent and other receivables (net of
allowance for doubtful accounts of $1.4 and $3.5 as of December 31,
2021 and 2020, respectively)
420.4
334.2
86.2
26
%
Restricted cash
1.3
1.5
(0.2
)
(13
) %
Operating lease right-of-use assets,
net
143.7
211.4
(67.7
)
(32
) %
Equity investments
30.3
67.1
(36.8
)
(55
) %
Goodwill
455.1
455.1
—
—
%
Intangible assets (net of accumulated
amortization of $280.1 and $249.3 as of December 31, 2021 and 2020,
respectively)
124.8
157.8
(33.0
)
(21
) %
Other assets
352.2
133.4
218.8
n/m
Total assets
$
7,452.0
$
6,897.4
$
554.6
8
%
Liabilities and equity
Debt
$
3,492.9
$
3,409.0
$
83.9
2
%
Finance lease liabilities
156.9
29.1
127.8
n/m
Operating lease liabilities
178.8
249.1
(70.3
)
(28
) %
Construction costs payable
129.7
133.0
(3.3
)
(2
) %
Accounts payable and accrued expenses
192.8
151.3
41.5
27
%
Dividends payable
68.1
63.3
4.8
8
%
Deferred revenue and prepaid rents
235.0
174.1
60.9
35
%
Deferred tax liability
39.8
53.0
(13.2
)
(25
) %
Other liabilities
34.3
77.3
(43.0
)
(56
) %
Total liabilities
4,528.3
4,339.2
189.1
4
%
Commitments and contingencies
Stockholders' equity
Preferred stock, $.01 par value,
100,000,000 authorized; no shares issued or outstanding
—
—
—
n/m
Common stock, $.01 par value, 500,000,000
shares authorized and 129,554,609 and 120,442,521 shares issued and
outstanding at December 31, 2021 and 2020, respectively
1.3
1.2
0.1
8
%
Additional paid in capital
4,145.1
3,537.3
607.8
17
%
Accumulated deficit
(1,200.1
)
(966.6
)
(233.5
)
24
%
Accumulated other comprehensive loss
(22.6
)
(13.7
)
(8.9
)
65
%
Total stockholders’ equity
2,923.7
2,558.2
365.5
14
%
Total liabilities and equity
$
7,452.0
$
6,897.4
$
554.6
8
%
CyrusOne Inc.
Condensed Consolidated
Statements of Operations
(Dollars in millions, except
per share amounts)
(Unaudited)
For the three months ended:
December 31
September 30,
June 30,
March 31,
December 31,
2021
2021
2021
2021
2020
Revenue(a)
$
318.4
$
304.1
$
284.6
$
298.6
$
268.4
Operating expenses:
Property operating expenses
140.1
133.4
121.8
135.8
110.3
Sales and marketing
3.8
3.6
3.7
3.8
5.3
General and administrative
31.5
30.8
16.6
23.0
22.4
Depreciation and amortization
126.6
127.5
123.7
121.4
118.5
Transaction, acquisition, integration and
other related expenses
20.9
0.2
0.1
0.1
1.5
Impairment losses and (gain) loss on asset
disposals, net
(2.7
)
0.1
0.1
0.5
—
Total operating expenses
320.2
295.6
266.0
284.6
258.0
Operating (loss) income
(1.8
)
8.5
18.6
14.0
10.4
Interest expense, net
(17.4
)
(17.3
)
(14.8
)
(15.1
)
(14.5
)
Gain on marketable equity investment
—
—
—
2.4
19.7
Foreign currency and derivative gains,
net
12.4
14.4
1.4
15.4
4.1
Other (expense) income
(0.2
)
0.1
(0.1
)
(0.1
)
—
Net (loss) income before income
taxes
(7.0
)
5.7
5.1
16.6
19.7
Income tax benefit (expense)
—
1.0
2.3
1.6
(0.7
)
Net (loss) income
$
(7.0
)
$
6.7
$
7.4
$
18.2
$
19.0
Net (loss) income per share -
basic
$
(0.06
)
$
0.05
$
0.06
$
0.15
$
0.15
Net (loss) income per share -
diluted
$
(0.06
)
$
0.05
$
0.06
$
0.15
$
0.15
(a)
Revenue includes metered power
reimbursements of $70.4 million, $62.5 million, $53.0 million,
$73.1 million and $44.9 million for the three months ended December
31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and
December 31, 2020, respectively.
CyrusOne Inc.
Condensed Consolidated Balance
Sheets
(Dollars in millions)
(Unaudited)
December 31,
September 30,
June 30,
March 31,
December 31,
2021
2021
2021
2021
2020
Assets
Investment in real estate:
Land
$
210.5
$
211.6
$
212.8
$
207.3
$
208.8
Buildings and improvements
2,344.0
2,336.3
2,253.8
2,046.6
2,035.2
Equipment
4,140.3
4,064.7
3,869.0
3,596.5
3,538.9
Gross operating real estate
6,694.8
6,612.6
6,335.6
5,850.4
5,782.9
Less accumulated depreciation
(2,184.1
)
(2,080.4
)
(1,977.8
)
(1,867.5
)
(1,767.9
)
Net operating real estate
4,510.7
4,532.2
4,357.8
3,982.9
4,015.0
Construction in progress, including land
under development
765.9
729.8
917.3
1,053.3
982.2
Land held for future development
301.3
293.0
265.9
262.3
268.3
Total investment in real estate, net
5,577.9
5,555.0
5,541.0
5,298.5
5,265.5
Cash and cash equivalents
346.3
456.4
369.7
240.9
271.4
Rent and other receivables, net
420.4
409.2
409.4
389.8
334.2
Restricted cash
1.3
24.3
24.8
1.4
1.5
Operating lease right-of-use assets,
net
143.7
148.5
155.0
239.7
211.4
Equity investments
30.3
30.3
30.0
22.9
67.1
Goodwill
455.1
455.1
455.1
455.1
455.1
Intangible assets, net
124.8
132.7
141.2
149.2
157.8
Other assets
352.2
128.0
115.0
114.3
133.4
Total assets
$
7,452.0
$
7,339.5
$
7,241.2
$
6,911.8
$
6,897.4
Liabilities and equity
Debt
$
3,492.9
$
3,515.1
$
3,541.6
$
3,337.4
$
3,409.0
Finance lease liabilities
156.9
157.2
162.8
28.6
29.1
Operating lease liabilities
178.8
183.9
190.5
277.9
249.1
Construction costs payable
129.7
104.6
157.7
137.5
133.0
Accounts payable and accrued expenses
192.8
192.1
147.7
168.9
151.3
Dividends payable
68.1
66.3
63.6
62.0
63.3
Deferred revenue and prepaid rents
235.0
227.9
217.1
183.2
174.1
Deferred tax liability
39.8
41.9
45.3
48.2
53.0
Other liabilities
34.3
45.0
58.3
53.3
77.3
Total liabilities
4,528.3
4,534.0
4,584.6
4,297.0
4,339.2
Commitments and contingencies
Stockholders' equity
Preferred stock, $.01 par value,
100,000,000 authorized; no shares issued or outstanding
—
—
—
—
—
Common stock, $.01 par value, 500,000,000
shares authorized and 129,554,609 and 120,442,521 shares issued and
outstanding at December 31, 2021 and 2020, respectively
1.3
1.3
1.2
1.2
1.2
Additional paid in capital
4,145.1
3,952.7
3,731.3
3,628.6
3,537.3
Accumulated deficit
(1,200.1
)
(1,125.3
)
(1,066.1
)
(1,010.2
)
(966.6
)
Accumulated other comprehensive loss
(22.6
)
(23.2
)
(9.8
)
(4.8
)
(13.7
)
Total stockholders' equity
2,923.7
2,805.5
2,656.6
2,614.8
2,558.2
Total liabilities and equity
$
7,452.0
$
7,339.5
$
7,241.2
$
6,911.8
$
6,897.4
CyrusOne Inc.
Condensed Consolidated
Statements of Cash Flows
(Dollars in millions)
(Unaudited)
Twelve Months Ended December
31, 2021
Twelve Months Ended December
31, 2020
Three Months Ended December
31, 2021
Three Months Ended December
31, 2020
Cash flows from operating activities:
Net income (loss)
$
25.3
$
41.4
$
(7.0
)
$
19.0
Adjustments to reconcile Net income (loss)
to Net cash provided by operating activities
Depreciation and amortization
499.2
449.4
126.6
118.5
(Recovery)/provision for bad debt
expense
(1.5
)
1.7
(0.5
)
1.4
Gain on marketable equity investment
(2.4
)
(89.5
)
—
(19.7
)
Foreign currency and derivative (gains)
losses, net
(43.6
)
27.6
(12.4
)
(4.1
)
Proceeds from swap terminations
—
2.9
—
—
Impairment losses and (gain) loss on asset
disposals, net
(2.0
)
11.1
(2.7
)
—
Loss on early extinguishment of debt
—
6.5
—
—
Interest expense amortization, net
7.8
6.8
2.1
1.6
Stock-based compensation expense
22.6
18.4
5.4
4.7
Deferred income tax (benefit) expense
(9.0
)
(6.9
)
(1.0
)
0.2
Operating lease cost
20.8
20.4
5.5
5.4
Other expense (income)
0.2
0.1
0.4
(0.5
)
Change in operating assets and
liabilities:
Rent and other receivables, net and other
assets
(111.8
)
(58.0
)
(21.2
)
(28.9
)
Accounts payable and accrued expenses
33.8
39.0
(9.1
)
17.0
Deferred revenue and prepaid rents
62.5
8.8
8.2
6.5
Operating lease liabilities
(24.3
)
(23.4
)
(6.1
)
(6.7
)
Net cash provided by operating
activities
477.6
456.3
88.2
114.4
Cash flows from investing activities:
Investments in real estate
(727.0
)
(910.5
)
(146.8
)
(218.3
)
Deposits for contract obligations
(193.4
)
—
(193.4
)
—
Proceeds from sale of equity
investments
46.6
144.1
—
112.3
Equity investments
(7.4
)
(6.5
)
—
—
Proceeds from the sale of real estate
assets
5.6
0.5
1.2
0.2
Net cash used in investing
activities
(875.6
)
(772.4
)
(339.0
)
(105.8
)
Cash flows from financing activities:
Issuance of common stock, net
597.7
325.7
189.8
(0.2
)
Dividends paid
(253.9
)
(236.2
)
(66.0
)
(61.5
)
Proceeds from revolving credit
facility
173.4
763.7
—
168.2
Repayments of revolving credit
facility
(610.5
)
(966.1
)
—
0.6
Proceeds from Euro bond
603.1
553.5
—
(7.7
)
Proceeds from unsecured term loan
—
1,100.0
—
—
Repayments of unsecured term loan
—
(1,400.0
)
—
—
Proceeds from issuance of senior notes
—
395.2
—
—
Payment of deferred financing costs
(5.1
)
(16.4
)
(0.1
)
(1.3
)
Payments on finance lease liabilities
(4.4
)
(3.5
)
(0.9
)
(1.5
)
Tax payment upon exercise of equity
awards
(12.4
)
(8.7
)
(2.8
)
(0.1
)
Net cash provided by financing
activities
487.9
507.2
120.0
96.5
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(15.2
)
4.1
(2.3
)
9.9
Net increase (decrease) in cash, cash
equivalents and restricted cash
74.7
195.2
(133.1
)
115.0
Cash, cash equivalents and restricted cash
at beginning of period
272.9
77.7
480.7
157.9
Cash, cash equivalents and restricted
cash at end of period
$
347.6
$
272.9
$
347.6
$
272.9
Supplemental disclosure of cash flow
information:
Cash paid for interest, including amounts
capitalized of $20.0 million and $22.6 million in 2021 and 2020,
respectively
$
73.6
$
62.4
$
27.8
$
26.1
Cash paid for income taxes
4.5
3.7
0.5
0.5
Non-cash investing and financing
activities:
Construction costs payable
129.7
133.0
129.7
133.0
Dividends payable
68.1
63.3
68.1
63.3
CyrusOne Inc.
Reconciliation of Net Income
(Loss) to Net Operating Income
(Dollars in millions)
(Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
Change
December 31,
Change
2021
2020
$
%
2021
2020
$
%
Net (loss) income
$
(7.0
)
$
19.0
$
(26.0
)
n/m
$
25.3
$
41.4
$
(16.1
)
(39
) %
Sales and marketing expenses
3.8
5.3
(1.5
)
(28
) %
14.9
18.3
(3.4
)
(19
) %
General and administrative expenses
31.5
22.4
9.1
41
%
101.9
99.3
2.6
3
%
Depreciation and amortization expenses
126.6
118.5
8.1
7
%
499.2
449.4
49.8
11
%
Transaction, acquisition, integration and
other related expenses
20.9
1.5
19.4
n/m
21.3
3.7
17.6
n/m
Interest expense, net
17.4
14.5
2.9
20
%
64.6
57.7
6.9
12
%
Gain on marketable equity investment
—
(19.7
)
19.7
(100
) %
(2.4
)
(89.5
)
87.1
(97
) %
Loss on early extinguishment of debt
—
—
—
n/m
—
6.5
(6.5
)
(100
) %
Impairment losses and (gain) loss on asset
disposals, net
(2.7
)
—
(2.7
)
n/m
(2.0
)
11.1
(13.1
)
n/m
Foreign currency and derivative (gains)
losses, net
(12.4
)
(4.1
)
(8.3
)
n/m
(43.6
)
27.6
(71.2
)
n/m
Other expense
0.2
—
0.2
n/m
0.3
—
0.3
n/m
Income tax expense (benefit)
—
0.7
(0.7
)
(100
) %
(4.9
)
(3.6
)
(1.3
)
36
%
Net Operating Income
$
178.3
$
158.1
$
20.2
13
%
$
674.6
$
621.9
$
52.7
8
%
CyrusOne Inc.
Net Operating Income and
Reconciliation of Net Income (Loss) to Adjusted EBITDA
(Dollars in millions)
(Unaudited)
Twelve Months Ended
Three Months Ended
December 31,
Change
December 31,
September 30,
June 30,
March 31,
December 31,
2021
2020
$
%
2021
2021
2021
2021
2020
Net Operating Income
Revenue
$
1,205.7
$
1,033.5
$
172.2
17
%
$
318.4
$
304.1
$
284.6
$
298.6
$
268.4
Property operating expenses
531.1
411.6
119.5
29
%
140.1
133.4
121.8
135.8
110.3
Net Operating Income (NOI)
$
674.6
$
621.9
$
52.7
8
%
$
178.3
$
170.7
$
162.8
$
162.8
$
158.1
NOI as a % of Revenue
56.0
%
60.2
%
56.0
%
56.1
%
57.2
%
54.5
%
58.9
%
Reconciliation of Net income (loss) to
Adjusted EBITDA:
Net income (loss)
$
25.3
$
41.4
$
(16.1
)
(39
)%
$
(7.0
)
$
6.7
$
7.4
$
18.2
$
19.0
Interest expense, net
64.6
57.7
6.9
12
%
17.4
17.3
14.8
15.1
14.5
Income tax (benefit) expense
(4.9
)
(3.6
)
(1.3
)
36
%
—
(1.0
)
(2.3
)
(1.6
)
0.7
Depreciation and amortization expenses
499.2
449.4
49.8
11
%
126.6
127.5
123.7
121.4
118.5
Impairment losses and (gain) loss on asset
disposals
(2.0
)
11.1
(13.1
)
n/m
(2.7
)
0.1
0.1
0.5
—
EBITDA (Nareit definition)(a)
$
582.2
$
556.0
$
26.2
5
%
$
134.3
$
150.6
$
143.7
$
153.6
$
152.7
Transaction, acquisition, integration and
other related expenses
21.3
3.7
17.6
n/m
20.9
0.2
0.1
0.1
1.5
Legal claim (gain) costs
(4.9
)
0.3
(5.2
)
n/m
—
—
(4.9
)
—
—
Stock-based compensation expense
18.1
15.5
2.6
17
%
5.4
4.0
4.3
4.4
4.4
Cash severance and management transition
costs
4.3
14.1
(9.8
)
(70
)%
—
4.4
—
(0.1
)
0.9
Severance-related stock compensation
costs
4.5
2.9
1.6
55
%
—
4.5
—
—
0.2
Loss on early extinguishment of debt
—
6.5
(6.5
)
(100
)%
—
—
—
—
—
Gain on marketable equity investment
(2.4
)
(89.5
)
87.1
(97
)%
—
—
—
(2.4
)
(19.7
)
Foreign currency and derivative (gains)
losses, net
(43.6
)
27.6
(71.2
)
n/m
(12.4
)
(14.4
)
(1.4
)
(15.4
)
(4.1
)
Other expense (income)
0.3
—
0.3
n/m
0.2
(0.1
)
0.1
0.1
—
Adjusted EBITDA
$
579.8
$
537.1
$
42.7
8
%
$
148.4
$
149.2
$
141.9
$
140.3
$
135.9
Adjusted EBITDA as a % of Revenue
48.1
%
52.0
%
46.6
%
49.1
%
49.9
%
47.0
%
50.6
%
(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)
Twelve Months Ended
Three Months Ended
December 31,
Change
December 31,
September 30,
June 30,
March 31,
December 31,
2021
2020
$
%
2021
2021
2021
2021
2020
Reconciliation of Net Income (Loss) to
FFO and Normalized FFO:
Net income (loss)
$
25.3
$
41.4
$
(16.1
)
(39
) %
$
(7.0
)
$
6.7
$
7.4
$
18.2
$
19.0
Real estate depreciation and
amortization
491.0
440.1
50.9
12
%
125.0
125.5
121.5
119.0
116.1
Impairment losses and (gain) loss on asset
disposals, net
(2.0
)
11.1
(13.1
)
n/m
(2.7
)
0.1
0.1
0.5
—
Funds from Operations ("FFO") - Nareit
defined
$
514.3
$
492.6
$
21.7
4
%
$
115.3
$
132.3
$
129.0
$
137.7
$
135.1
Loss on early extinguishment of debt
—
6.5
(6.5
)
(100
) %
—
—
—
—
—
Gain on marketable equity investment
(2.4
)
(89.5
)
87.1
(97
) %
—
—
—
(2.4
)
(19.7
)
Foreign currency and derivative (gains)
losses, net
(43.6
)
27.6
(71.2
)
n/m
(12.4
)
(14.4
)
(1.4
)
(15.4
)
(4.1
)
Amortization of tradenames
0.9
1.2
(0.3
)
(25
) %
0.1
0.2
0.3
0.3
0.4
Transaction, acquisition, integration and
other related expenses
21.3
3.7
17.6
n/m
20.9
0.2
0.1
0.1
1.5
Cash severance and management transition
costs
4.3
14.1
(9.8
)
(70
) %
—
4.4
—
(0.1
)
0.9
Severance-related stock compensation
costs
4.5
2.9
1.6
55
%
—
4.5
—
—
0.2
Legal claim (gain) costs
(4.9
)
0.3
(5.2
)
n/m
—
—
(4.9
)
—
—
Normalized Funds from Operations
(Normalized FFO)
$
494.4
$
459.4
$
35.0
8
%
$
123.9
$
127.2
$
123.1
$
120.2
$
114.3
Normalized FFO per diluted common
share
$
3.99
$
3.90
$
0.09
2
%
$
0.97
$
1.02
$
1.00
$
1.00
$
0.94
Weighted average diluted common shares
outstanding
123.9
117.6
6.3
5
%
127.9
124.3
122.7
120.5
120.6
Additional Information:
Amortization of deferred financing costs
and bond premium / discount
7.8
6.8
1.0
15
%
2.1
2.2
1.9
1.6
1.6
Stock-based compensation expense
18.1
15.5
2.6
17
%
5.4
4.0
4.3
4.4
4.4
Non-real estate depreciation and
amortization
7.3
8.1
(0.8
)
(10
) %
1.6
1.7
1.8
2.2
2.0
Straight line rent adjustments(a)
(5.4
)
(15.0
)
9.6
(64
) %
1.2
(4.6
)
(3.2
)
1.2
(8.0
)
Straight line rental expense
adjustments
0.7
(0.5
)
1.2
n/m
—
(0.1
)
0.6
0.2
0.1
Above and below market rent
amortization
(0.3
)
(0.3
)
—
—
%
(0.1
)
(0.1
)
—
(0.1
)
(0.1
)
Deferred tax benefit
(9.0
)
(7.1
)
(1.9
)
27
%
(1.0
)
(2.1
)
(3.3
)
(2.6
)
(0.2
)
Deferred revenue, primarily installation
revenue(b)
59.2
2.6
56.6
n/m
5.9
29.4
15.1
8.8
2.3
Leasing commissions
(22.0
)
(15.2
)
(6.8
)
45
%
(8.5
)
(4.5
)
(5.1
)
(3.9
)
(4.3
)
Recurring capital expenditures
(24.4
)
(13.8
)
(10.6
)
77
%
(10.7
)
(7.2
)
(3.9
)
(2.6
)
(0.8
)
(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 December 31, 2021)
(dollars in millions)
Shares or
Equivalents
Outstanding
Market Price
as of
December 31, 2021
Market Value
Equivalents
(in millions)
Common shares
129,554,609
$
89.72
$
11,623.6
Net Debt
3,345.0
Total Enterprise Value (TEV)
$
14,968.6
Reconciliation of
Net Debt
December 31,
September 30,
December 31,
(dollars in millions)
2021
2021
2020
Long-term debt(a)
$
3,534.4
$
3,559.0
$
3,446.1
Finance lease liabilities
156.9
157.2
29.1
Less:
Cash and cash equivalents
(346.3
)
(456.4
)
(271.4
)
Net Debt
$
3,345.0
$
3,259.8
$
3,203.8
(a) Excludes adjustment for deferred
financing costs and unamortized bond discounts.
Interest
Summary
Three Months Ended
December 31,
September 30,
December 31,
% Change
(dollars in millions)
2021
2021
2020
Yr/Yr
Interest expense and fees, net
$
19.7
$
19.9
$
18.5
6
%
Amortization of deferred financing costs
and bond premium / discount
2.1
2.2
1.6
31
%
Capitalized interest
(4.4
)
(4.8
)
(5.6
)
(21
) %
Total interest expense, net
$
17.4
$
17.3
$
14.5
20
%
CyrusOne Inc.
Debt Schedule and Debt
Covenants
(Unaudited)
Debt
Schedule (as of December 31, 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)
567.2
1.450%
January 2027
1.125% EUR senior notes due 2028(f)
567.2
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)
$ 3,534.4
2.04%(h)
Weighted average term of
debt(b)(e):
5.4
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 December 31, 2021:
1.31%; weighted average interest rate pursuant to swaps: 1.34%.
(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 December 31, 2021)
Ratios
Requirement
December 31, 2021
Total Outstanding Indebtedness to Total
Assets
≤ 60%
42%
Secured Indebtedness to Total Assets
≤ 40%
2%
Consolidated EBITDA to Interest
Expense
≥ 1.50x
6.81x
Total Unencumbered Assets to Unsecured
Indebtedness
≥ 150%
243%
CyrusOne Inc.
Colocation Square Footage
(CSF) and CSF Leased
(Unaudited)
As of December 31,
2021
As of September 30,
2021
As of December 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
1,308
89 %
1,268
92 %
1,166
93 %
Phoenix
643
97 %
643
97 %
581
95 %
Dallas
621
70 %
621
70 %
621
70 %
San Antonio
434
97 %
434
97 %
434
97 %
Cincinnati
405
69 %
405
68 %
402
71 %
New York Metro
349
68 %
349
68 %
290
79 %
Houston
308
51 %
308
51 %
308
62 %
Chicago
203
81 %
203
81 %
203
79 %
Austin
106
68 %
106
68 %
106
76 %
Raleigh-Durham
94
100 %
94
100 %
94
94 %
Council Bluffs, Iowa
42
15 %
42
15 %
42
15 %
Total - Domestic
4,512
81 %
4,472
82 %
4,246
83 %
Frankfurt
268
99 %
268
99 %
229
99 %
London
175
100 %
167
99 %
148
83 %
Dublin
76
100 %
76
100 %
—
— %
Amsterdam
39
100 %
39
100 %
39
100 %
Paris
26
100 %
26
100 %
—
— %
Singapore
—
— %
3
20 %
3
20 %
Total - International
582
100 %
578
99 %
419
93 %
Total - Portfolio
5,094
83 %
5,050
84 %
4,665
84 %
Stabilized Properties(c)
4,833
86 %
4,789
86 %
4,398
87 %
(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. - Data Center
Portfolio
As of December 31, 2021
(Unaudited)
Gross Square Feet
(GSF)(a)
Powered Shell Avail. 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
$
97,792
428
77
%
77
%
83
47
%
133
644
—
60
Northern Virginia - Sterling V
Northern Virginia
73,518
383
99
%
99
%
11
100
%
145
539
231
69
Northern Virginia - Sterling VI
Northern Virginia
66,641
272
100
%
100
%
35
—
%
—
307
—
57
Frankfurt II
Frankfurt
52,169
90
100
%
100
%
9
100
%
72
171
10
35
Frankfurt III
Frankfurt
48,541
124
100
%
100
%
19
100
%
115
258
—
44
Somerset I
New York Metro
43,880
169
91
%
91
%
27
100
%
149
344
28
25
Northern Virginia - Sterling II
Northern Virginia
43,520
159
100
%
100
%
9
100
%
55
223
—
30
San Antonio III
San Antonio
34,707
132
100
%
100
%
9
100
%
43
184
—
24
London II*
London
30,796
81
100
%
100
%
10
100
%
94
184
—
28
Phoenix - Chandler VI
Phoenix
30,170
148
100
%
100
%
7
100
%
32
187
59
24
Chicago - Aurora I
Chicago
29,515
113
98
%
98
%
34
100
%
223
371
27
52
Frankfurt I
Frankfurt
27,937
53
97
%
97
%
8
91
%
57
118
—
18
Dallas - Lewisville*
Dallas
27,127
114
74
%
79
%
11
57
%
54
180
—
21
Cincinnati - North Cincinnati
Cincinnati
26,980
68
100
%
100
%
45
80
%
53
166
59
14
Phoenix - Chandler V
Phoenix
26,018
143
95
%
99
%
2
97
%
25
170
13
27
Cincinnati - 7th Street***
Cincinnati
24,546
197
47
%
47
%
6
68
%
175
378
46
17
Totowa - Madison**
New York Metro
23,612
51
74
%
74
%
22
89
%
59
133
—
12
Phoenix - Chandler I
Phoenix
22,312
74
99
%
99
%
35
11
%
39
147
31
12
Austin III
Austin
21,809
62
59
%
59
%
15
96
%
21
98
67
11
Raleigh-Durham I
Raleigh-Durham
21,223
94
100
%
100
%
16
100
%
82
192
235
14
Phoenix - Chandler II
Phoenix
21,078
74
100
%
100
%
6
53
%
26
105
—
12
Houston - Houston West II
Houston
20,743
80
67
%
67
%
4
97
%
55
139
11
12
London I*
London
20,117
46
100
%
100
%
12
56
%
58
115
—
17
Northern Virginia - Sterling III
Northern Virginia
19,913
79
100
%
100
%
7
100
%
34
120
—
15
San Antonio I
San Antonio
19,665
44
98
%
98
%
6
83
%
46
96
11
12
Phoenix - Chandler III
Phoenix
19,400
68
100
%
100
%
2
—
%
30
101
—
18
Northern Virginia - Sterling IV
Northern Virginia
18,713
81
100
%
100
%
7
100
%
34
122
—
15
Houston - Houston West I
Houston
18,478
112
48
%
48
%
11
100
%
37
161
3
32
Northern Virginia - Sterling I
Northern Virginia
17,694
78
89
%
89
%
6
63
%
49
132
—
12
San Antonio II
San Antonio
17,339
64
100
%
100
%
11
100
%
41
117
—
12
San Antonio V
San Antonio
17,097
134
90
%
90
%
14
100
%
38
187
1
21
Wappingers Falls I**
New York Metro
16,833
37
62
%
62
%
20
86
%
15
72
—
7
London III*
London
16,255
39
100
%
100
%
4
100
%
49
91
—
12
Austin II
Austin
14,815
44
81
%
81
%
2
81
%
22
68
—
6
Northern Virginia - Sterling IX
Northern Virginia
13,313
91
100
%
100
%
8
100
%
2
101
—
12
San Antonio IV
San Antonio
13,059
60
100
%
100
%
12
100
%
27
99
—
12
Phoenix - Chandler IV
Phoenix
12,978
73
100
%
100
%
3
100
%
27
103
—
12
Florence
Cincinnati
11,445
53
99
%
99
%
47
87
%
40
140
—
9
Dublin
Dublin
9,703
76
100
%
100
%
10
100
%
33
119
76
12
Chicago - Aurora II (DH #1)
Chicago
9,655
77
60
%
60
%
45
2
%
14
136
27
16
Houston - Galleria
Houston
9,250
63
37
%
37
%
23
21
%
25
112
—
11
Cincinnati - Hamilton*
Cincinnati
9,196
47
65
%
65
%
1
100
%
35
83
—
9
Houston - Houston West III
Houston
8,851
53
50
%
50
%
10
13
%
32
95
2
6
Norwalk I**
New York Metro
7,337
17
100
%
100
%
10
100
%
41
68
83
6
London - Great Bridgewater**
London
6,357
10
91
%
91
%
—
—
%
1
11
—
1
Paris I
Paris
5,706
26
100
%
100
%
4
100
%
15
45
201
6
Dallas - Allen (DH #1)
Dallas
5,365
79
24
%
24
%
—
—
%
58
137
204
6
Stamford - Riverbend**
New York Metro
4,961
20
22
%
22
%
—
—
%
8
28
—
5
Cincinnati - Mason
Cincinnati
4,701
34
100
%
100
%
26
98
%
17
78
—
4
Amsterdam I
Amsterdam
4,253
39
100
%
100
%
15
100
%
40
94
207
4
Phoenix - Chandler VII
Phoenix
3,703
62
71
%
71
%
10
21
%
38
110
—
15
Chicago - Lombard
Chicago
2,381
14
50
%
50
%
4
79
%
12
30
29
2
Totowa - Commerce**
New York Metro
811
—
—
%
—
%
20
45
%
6
26
—
—
Cincinnati - Blue Ash*
Cincinnati
435
6
36
%
36
%
7
100
%
2
15
—
1
Stabilized Properties - Total
$
1,174,411
4,833
86
%
86
%
780
69
%
2,632
8,246
1,661
941
CyrusOne Inc.
Data Center Portfolio
As of December 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
$
1,174,411
4,833
86
%
86
%
780
69
%
2,632
8,246
1,661
941
Pre-Stabilized
Properties(b)
Northern Virginia - Sterling VIII
Northern Virginia
13,453
61
59
%
59
%
4
—
%
25
90
—
12
Northern Virginia - Sterling IX
Northern Virginia
6,380
104
43
%
44
%
1
—
%
68
173
32
21
Council Bluffs I
Iowa
2,085
42
12
%
15
%
14
—
%
18
73
42
5
Somerset (DH #12 and #13)
New York Metro
—
54
—
%
—
%
9
—
%
—
63
—
5
All Properties - Total
$
1,196,329
5,094
83
%
83
%
809
67
%
2,743
8,646
1,736
984
*
Indicates properties in which we hold a
leasehold interest in the building shell and land. All data center
infrastructure has been constructed by us and is owned by us.
**
Indicates properties in which we hold a
leasehold interest in the building shell, land, and all data center
infrastructure.
***
The information provided for the
Cincinnati - 7th Street property includes data for two facilities,
one of which we lease and one of which we own.
(a)
Represents the total square feet of a
building under lease or available for lease based on engineers'
drawings and estimates but does not include space held for
development or space used by CyrusOne.
(b)
Stabilized properties include data halls
that have been in service for at least 24 months or are at least
85% leased. Pre-stabilized properties include data halls that have
been in service for less than 24 months and are less than 85%
leased.
(c)
Represents monthly contractual rent
(defined as cash rent including customer reimbursements for metered
power) under existing customer leases as of December 31, 2021
multiplied by 12. For the month of December 2021, customer
reimbursements were $268.8 million annualized and consisted of
reimbursements by customers across all facilities with separately
metered power. Customer reimbursements under leases with separately
metered power vary from month-to-month based on factors such as our
customers' utilization of power and the suppliers' pricing of
power. From January 1, 2020 through December 31, 2021, customer
reimbursements under leases with separately metered power
constituted between 14.9% and 22.5% of annualized rent. After
giving effect to abatements, free rent and other straight-line
adjustments, our annualized effective rent as of December 31, 2021
was $1,195.9 million. Our annualized effective rent was lower than
our annualized rent as of December 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 December 31, 2021
divided by total CSF. Leases signed but that have not commenced
billing as of December 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 December 31, 2021 divided by total Office & Other
space. Leases signed but not commenced as of December 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.
Land Available for Future Development (Acres) As of
December 31, 2021 (Unaudited)
As of
Market
December 31, 2021
Amsterdam
8
Austin
22
Chicago
23
Cincinnati
98
Council Bluffs, Iowa
10
Dallas
57
Dublin
15
Frankfurt
18
Houston
20
London
33
Madrid
5
Northern Virginia
8
Phoenix
96
Quincy, Washington
48
San Antonio
22
Santa Clara
23
Total Available(a)
505
Book Value of Total Available
$ 301.3 million
(a) Does not sum to total due to rounding.
CyrusOne Inc.
Leasing Statistics - Lease
Signings
As of December 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)
4Q'21
310
530,000
101,121
$8,693
83
Prior 4Q Avg.
379
190,750
25,132
$3,425
110
3Q'21
349
100,000
19,860
$3,152
108
2Q'21
370
345,000
20,855
$3,487
99
1Q'21
414
156,000
28,493
$2,947
116
4Q'20
383
162,000
31,321
$4,112
117
(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, $0.3 million in 3Q'21, and
$0.2 million in 4Q'20, 1Q'21 and 4Q'21.
(e)
Calculated on a CSF-weighted basis.
CyrusOne Inc.
New MRR Signed - Existing vs.
New Customers
As of December 31,
2021
(Dollars in thousands)
(Unaudited)
New MRR Signed(a)
1Q'20 2Q'20
3Q'20 4Q'20 1Q'21
2Q'21 3Q'21 4Q'21 Existing
Customers
$4,756
$2,872
$841
$3,881
$2,827
$3,332
$3,039
$8,244
New Customers
$238
$198
$53
$231
$120
$155
$113
$449
Total
$4,994
$3,070
$894
$4,112
$2,947
$3,487
$3,152
$8,693
% from Existing Customers
95%
94%
94%
94%
96%
96%
96%
95%
(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 and
3Q'21, and $0.2 million in 2Q'20, 3Q'20, 4Q'20, 1Q'21 and
4Q'21.
CyrusOne Inc.
Customer Sector
Diversification(a)
As of December 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
13
$
238,726
20.0
%
84.2
2
Information Technology
8
118,620
9.9
%
45.4
3
Information Technology
14
87,138
7.3
%
27.9
4
Information Technology
5
60,353
5.0
%
30.9
5
Information Technology
10
50,374
4.2
%
39.4
6
Information Technology
4
45,179
3.8
%
43.9
7
Information Technology
3
22,508
1.9
%
23.3
8
Financial Services
1
20,837
1.7
%
111.0
9
Healthcare
2
16,431
1.4
%
72.0
10
Information Technology
7
16,383
1.4
%
26.8
11
Research and Consulting Services
3
14,634
1.2
%
10.0
12
Financial Services
2
12,048
1.0
%
30.7
13
Financial Services
4
11,697
1.0
%
75.4
14
Financial Services
4
11,568
1.0
%
77.7
15
Information Technology
1
9,931
0.8
%
26.6
16
Telecommunication Services
2
9,369
0.8
%
41.0
17
Telecommunication Services
1
8,279
0.7
%
71.0
18
Industrials
2
8,086
0.7
%
69.4
19
Information Technology
3
7,376
0.6
%
29.5
20
Telecommunication Services
7
7,183
0.6
%
18.0
$
776,719
64.9
%
54.9
(a)
Customers and their affiliates are
consolidated.
(b)
Represents monthly contractual rent
(defined as cash rent including customer reimbursements for metered
power) under existing customer leases as of December 31, 2021,
multiplied by 12. For the month of December 2021, customer
reimbursements were $268.8 million annualized and consisted of
reimbursements by customers across all facilities with separately
metered power. Customer reimbursements under leases with separately
metered power vary from month-to-month based on factors such as our
customers' utilization of power and the suppliers' pricing of
power. From January 1, 2020 through December 31, 2021, customer
reimbursements under leases with separately metered power
constituted between 14.9% and 22.5% of annualized rent. After
giving effect to abatements, free rent and other straight-line
adjustments, our annualized effective rent as of December 31, 2021
was $1,195.9 million. Our annualized effective rent was lower than
our annualized rent as of December 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
December 31, 2021, which was approximately $1,196.3 million.
(d)
Weighted average based on customer’s
percentage of total annualized rent expiring and is as of December
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 December 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
596
65
%
124
2
%
$
88,723
7
%
1000-2499
117
13
%
185
3
%
47,792
4
%
2500-4999
60
6
%
216
3
%
41,567
3
%
5000-9999
45
5
%
309
4
%
55,016
5
%
10000+
102
11
%
6,249
88
%
963,232
81
%
Total
920
100
%
7,083
100
%
$
1,196,329
100
%
(a)
Represents all leases in our portfolio,
including colocation, office and other leases.
(b)
Represents the number of customers
occupying data center, office and other space as of December 31,
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 December 31, 2021,
multiplied by 12. For the month of December 2021, customer
reimbursements were $268.8 million annualized and consisted of
reimbursements by customers across all facilities with separately
metered power. Customer reimbursements under leases with separately
metered power vary from month-to-month based on factors such as our
customers' utilization of power and the suppliers' pricing of
power. From January 1, 2020 through December 31, 2021, customer
reimbursements under leases with separately metered power
constituted between 14.9% and 22.5% of annualized rent. After
giving effect to abatements, free rent and other straight-line
adjustments, our annualized effective rent as of December 31, 2021
was $1,195.9 million. Our annualized effective rent was lower than
our annualized rent as of December 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 December 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
1,563
18
%
Month-to-Month
2,037
421
5
%
$
83,809
7
%
$
83,809
6
%
2022
3,628
940
11
%
185,338
15
%
193,604
15
%
2023
1,611
1,220
14
%
196,278
16
%
206,870
16
%
2024
1,268
763
9
%
170,177
14
%
176,667
14
%
2025
216
416
5
%
83,635
7
%
89,950
7
%
2026
183
965
11
%
164,455
14
%
180,950
14
%
2027
57
651
7
%
106,539
9
%
117,862
9
%
2028
32
347
4
%
48,550
4
%
55,551
4
%
2029
8
83
1
%
7,225
1
%
8,819
1
%
2030
10
308
4
%
30,211
3
%
41,879
3
%
2031
13
522
6
%
45,387
4
%
62,318
5
%
2032 - Thereafter
27
447
5
%
74,725
6
%
83,374
6
%
Total
9,090
8,646
100
%
$
1,196,329
100
%
$
1,301,653
100
%
(a)
Leases that were auto-renewed prior to
December 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 December 31, 2021,
multiplied by 12. For the month of December 2021, customer
reimbursements were $268.8 million annualized and consisted of
reimbursements by customers across all facilities with separately
metered power. Customer reimbursements under leases with separately
metered power vary from month-to-month based on factors such as our
customers' utilization of power and the suppliers' pricing of
power. From January 1, 2020 through December 31, 2021, customer
reimbursements under leases with separately metered power
constituted between 14.9% and 22.5% of annualized rent. After
giving effect to abatements, free rent and other straight-line
adjustments, our annualized effective rent as of December 31, 2021
was $1,195.9 million. Our annualized effective rent was lower than
our annualized rent as of December 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
December 31, 2021, multiplied by 12.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220215006201/en/
Investor Relations Michael Schafer Senior Vice President,
Finance 972-350-0060 investorrelations@cyrusone.com
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