Wednesday, May 1, 2019

CyrusOne sees strong start to year for colocation bookings

CyrusOne, a premier global data center REIT with 48 data centers worldwide, reported revenue of $225.0 million for the first quarter, compared to $196.6 million for the same period in 2018, an increase of 14%. Net income was $89.4 million for the first quarter, compared to net income of $43.5 million in the same period in 2018. Net income for the first quarter included a $101.2 million unrealized gain on the Company’s equity investment in GDS, a leading data center provider in China, due to an increase in GDS’s share price during the quarter. Net income per diluted common share3 was $0.82 in the first quarter of 2019, compared to net income per diluted common share of $0.45 in the same period in 2018.

The company attributed the increase in revenue primarily to a 22% increase in occupied colocation square feet (CSF) from organic growth and its Zenium acquisition, as well as additional interconnection services.

“We are off to a great start to the year, with strong operational and financial performance, and leasing contributions across the portfolio as our international expansion creates an increasingly balanced and diversified business with a presence in the most important markets in the world,” said Gary Wojtaszek, president and chief executive officer of CyrusOne.

Some highlights:

  • CyrusOne leased approximately 16 MW of power and 93,000 CSF in the first quarter, representing $2.3 million in monthly recurring rent, inclusive of the monthly impact of installation charges, or approximately $27.2 million in annualized GAAP revenue7, excluding estimates for pass-through power. 
  • The weighted average lease term of the new leases, based on square footage, is 56 months (4.7 years), and the weighted average remaining lease term of CyrusOne’s portfolio is 56 months (taking into account the impact of the backlog). 
  • Recurring rent churn for the first quarter was 2.1%, compared to 0.5% for the same period in 2018.
  • In the first quarter, the Company completed construction on 249,000 CSF and 48 MW of power capacity across five projects in Northern Virginia, the New York Metro area, and Raleigh-Durham. 
  • CSF leased as of the end of the first quarter was 90% for stabilized properties10 and 86% overall.