Wednesday, July 29, 2020

CyrusOne says data center leasing market remains strong

CyrusOne reported revenue of $256.4 million for the second quarter, compared to $251.5 million for the same period in 2019, an increase of 2%. The increase in revenue was driven primarily by a 7% increase in occupied CSF, lease termination fees totaling $3.0 million, and additional interconnection services, partially offset by the impact of equipment sales and rent churn. Revenue in the second quarter of 2020 included $6.9 million of equipment sales, compared to $17.1 million of equipment sales for the same period in 2019. Net income was $45.0 million for the second quarter, compared to net loss of $(8.5) million in the same period in 2019.

“We had another very strong leasing quarter with broad demand across our markets in the U.S. and Europe, and the nearly $100 million revenue backlog positions us well for growth in 2021 and beyond,” said Bruce Duncan, president and chief executive officer of CyrusOne. “We also continue to strengthen our balance sheet, and our $1.5 billion in available liquidity, including more than $400 million in forward equity, gives us significant capacity to fund our development pipeline while managing our leverage.”

Some highlights:

  • Leased 22 megawatts   and 150,000 colocation square feet (CSF) in the second quarter, totaling $37 million in annualized GAAP revenue
  • Balanced geographical mix with 51% of annualized GAAP revenue totaling $19 million signed across European markets, includes exercise of previously disclosed (in 3Q'19) paid reservation for 4.5 MW totaling approximately $5.5 million in annualized GAAP revenue
  • Backlog of $97 million in annualized GAAP revenue as of the end of the second quarter, the highest quarter-end backlog in the company’s history, representing approximately $710 million in total contract value
  • During Q2, CyrusOne completed construction on 212,000 CSF and 27 MW of power capacity in San Antonio, Phoenix, Northern Virginia, and London. 
  • Percentage CSF leased as of the end of the second quarter was 88% for stabilized properties8 and 83% overall. 
  • CyrusOne has development projects underway in Frankfurt, Dublin, London, Northern Virginia, San Antonio, the New York Metro area, and Council Bluffs (IA) that are expected to add approximately 336,000 CSF and 82 MW of power capacity plus 337,000 square feet of powered shell.