Maryland (State or Other Jurisdiction of Incorporation) | 001-33748 (Commission File Number) | 20 - 8718331 (I.R.S. Employer Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule l4a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule l4d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule l3e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Description | |
99.1 | Press Release dated April 24, 2014 |
DUPONT FABROS TECHNOLOGY, INC. | |
April 24, 2014 | /s/ Richard A. Montfort, Jr. |
Richard A. Montfort, Jr. | |
Executive Vice President, General Counsel and Secretary |
Exhibit No. | Description | |
99.1 | Press Release dated April 24, 2014 |
First Quarter 2014 |
Earnings Release |
and Supplemental Information |
DuPont Fabros Technology, Inc. 1212 New York Avenue, NW Suite 900 Washington, D.C. 20005 (202) 728-0044 www.dft.com NYSE: DFT | Investor Relations Contacts: Jeffrey H. Foster Chief Financial Officer jfoster@dft.com (202) 478-2333 | Christopher A. Warnke Manager, Investor Relations investorrelations@dft.com (202) 478-2330 |
Table of Contents | ||||
Earnings Release | 1-4 | |||
Consolidated Statements of Operations | 5 | |||
Reconciliations of Net Income to FFO, Normalized FFO and AFFO | 6 | |||
Consolidated Balance Sheets | 7 | |||
Consolidated Statements of Cash Flows | 8 | |||
Operating Properties | 9 | |||
Lease Expirations | 10 | |||
Development Projects | 11 | |||
Debt Summary and Debt Maturity | 12 | |||
Selected Unsecured Debt Metrics and Capital Structure | 13 | |||
Common Share and Operating Partnership Unit Weighted Average Amounts Outstanding | 14 | |||
2014 Guidance | 15 |
• | As of April 23, 2014, our operating portfolio was stabilized at 97% leased and commenced as measured by computer room square feet ("CRSF") and 95% leased and commenced as measured by critical load (in megawatts, or "MW"). |
• | Quarterly Highlights: |
• | Normalized Funds from Operations (“Normalized FFO”) of $0.59 per share representing a 40% increase over the prior year quarter. |
• | Adjusted Funds from Operations ("AFFO") per share of $0.62 representing a 63% increase over the prior year quarter. |
• | Executed one lease totaling 0.49 MW and 5,581 CRSF. |
• | Commenced two leases totaling 0.92 MW and 8,381 CRSF. |
• | Subsequent to the First Quarter 2014: |
• | Executed and commenced one lease totaling 2.60 MW and 27,952 CRSF. |
• | Higher operating income excluding depreciation of $0.11 per share, and |
• | Lower interest expense of $0.06 per share due to lower interest rates and higher capitalized interest. |
• | Executed and commenced one lease at VA3 for 3.1 years totaling 0.49 MW and 5,581 CRSF. |
• | In addition to the VA3 lease noted above, commenced one lease totaling 0.43 MW and 2,800 CRSF at CH1, which was a re-lease of space vacated by a customer on December 31, 2013. There was no vacancy period between the lease termination and the commencement of the new lease. |
• | Signed two leases with a weighted average lease term of 4.9 years totaling 3.09 MW and 33,533 CRSF that are expected to generate approximately $2.8 million of annualized GAAP base rent revenue. |
• | Extended the maturity of one lease at VA3 that was scheduled to expire in 2018 by 0.75 years. There was no impact to cash base rent, and GAAP base rent increased 1.2%. |
• | Commenced three leases totaling 3.52 MW and 36,333 CRSF. |
• | Lower interest expense of $0.02 per share which is primarily due to higher capitalized interest from the anticipated start of our SC1 Phase IIB development in the second quarter of 2014, and |
• | Higher operating income excluding depreciation of $0.01 per share primarily from leases executed year to date. |
Three months ended March 31, | |||||||
2014 | 2013 | ||||||
Revenues: | |||||||
Base rent | $ | 69,204 | $ | 64,132 | |||
Recoveries from tenants | 31,689 | 22,690 | |||||
Other revenues | 1,194 | 937 | |||||
Total revenues | 102,087 | 87,759 | |||||
Expenses: | |||||||
Property operating costs | 30,095 | 23,512 | |||||
Real estate taxes and insurance | 3,467 | 3,641 | |||||
Depreciation and amortization | 23,269 | 23,039 | |||||
General and administrative | 4,240 | 4,550 | |||||
Other expenses | 873 | 772 | |||||
Total expenses | 61,944 | 55,514 | |||||
Operating income | 40,143 | 32,245 | |||||
Interest income | 68 | 37 | |||||
Interest: | |||||||
Expense incurred | (7,824 | ) | (12,937 | ) | |||
Amortization of deferred financing costs | (743 | ) | (918 | ) | |||
Loss on early extinguishment of debt | — | (1,700 | ) | ||||
Net income | 31,644 | 16,727 | |||||
Net income attributable to redeemable noncontrolling interests – operating partnership | (4,788 | ) | (1,973 | ) | |||
Net income attributable to controlling interests | 26,856 | 14,754 | |||||
Preferred stock dividends | (6,811 | ) | (6,811 | ) | |||
Net income attributable to common shares | $ | 20,045 | $ | 7,943 | |||
Earnings per share – basic: | |||||||
Net income attributable to common shares | $ | 0.30 | $ | 0.12 | |||
Weighted average common shares outstanding | 65,348,269 | 65,089,972 | |||||
Earnings per share – diluted: | |||||||
Net income attributable to common shares | $ | 0.30 | $ | 0.12 | |||
Weighted average common shares outstanding | 65,823,921 | 65,928,717 | |||||
Dividends declared per common share | $ | 0.35 | $ | 0.20 |
Three months ended March 31, | |||||||
2014 | 2013 | ||||||
Net income | $ | 31,644 | $ | 16,727 | |||
Depreciation and amortization | 23,269 | 23,039 | |||||
Less: Non real estate depreciation and amortization | (172 | ) | (242 | ) | |||
FFO | 54,741 | 39,524 | |||||
Preferred stock dividends | (6,811 | ) | (6,811 | ) | |||
FFO attributable to common shares and OP units | $ | 47,930 | $ | 32,713 | |||
Loss on early extinguishment of debt | — | 1,700 | |||||
Normalized FFO | 47,930 | 34,413 | |||||
Straight-line revenues, net of reserve | 711 | (4,607 | ) | ||||
Amortization of lease contracts above and below market value | (599 | ) | (598 | ) | |||
Compensation paid with Company common shares | 1,593 | 1,903 | |||||
Non real estate depreciation and amortization | 172 | 242 | |||||
Amortization of deferred financing costs | 743 | 918 | |||||
Improvements to real estate | (425 | ) | (809 | ) | |||
Capitalized leasing commissions | (27 | ) | (112 | ) | |||
AFFO | $ | 50,098 | $ | 31,350 | |||
FFO attributable to common shares and OP units per share - diluted | $ | 0.59 | $ | 0.40 | |||
Normalized FFO per share - diluted | $ | 0.59 | $ | 0.42 | |||
AFFO per share - diluted | $ | 0.62 | $ | 0.38 | |||
Weighted average common shares and OP units outstanding - diluted | 81,431,858 | 82,096,356 |
March 31, 2014 | December 31, 2013 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Income producing property: | |||||||
Land | $ | 75,956 | $ | 75,956 | |||
Buildings and improvements | 2,423,357 | 2,420,986 | |||||
2,499,313 | 2,496,942 | ||||||
Less: accumulated depreciation | (435,384 | ) | (413,394 | ) | |||
Net income producing property | 2,063,929 | 2,083,548 | |||||
Construction in progress and land held for development | 365,613 | 302,068 | |||||
Net real estate | 2,429,542 | 2,385,616 | |||||
Cash and cash equivalents | 71,786 | 38,733 | |||||
Rents and other receivables, net | 13,653 | 12,674 | |||||
Deferred rent, net | 149,327 | 150,038 | |||||
Lease contracts above market value, net | 8,879 | 9,154 | |||||
Deferred costs, net | 38,107 | 39,866 | |||||
Prepaid expenses and other assets | 48,448 | 44,507 | |||||
Total assets | $ | 2,759,742 | $ | 2,680,588 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Liabilities: | |||||||
Line of credit | $ | — | $ | — | |||
Mortgage notes payable | 115,000 | 115,000 | |||||
Unsecured term loan | 250,000 | 154,000 | |||||
Unsecured notes payable | 600,000 | 600,000 | |||||
Accounts payable and accrued liabilities | 22,446 | 23,566 | |||||
Construction costs payable | 25,489 | 45,444 | |||||
Accrued interest payable | 1,971 | 9,983 | |||||
Dividend and distribution payable | 34,238 | 25,971 | |||||
Lease contracts below market value, net | 9,656 | 10,530 | |||||
Prepaid rents and other liabilities | 61,040 | 56,576 | |||||
Total liabilities | 1,119,840 | 1,041,070 | |||||
Redeemable noncontrolling interests – operating partnership | 375,144 | 387,244 | |||||
Commitments and contingencies | — | — | |||||
Stockholders’ equity: | |||||||
Preferred stock, $.001 par value, 50,000,000 shares authorized: | |||||||
Series A cumulative redeemable perpetual preferred stock, 7,400,000 issued and outstanding at March 31, 2014 and December 31, 2013 | 185,000 | 185,000 | |||||
Series B cumulative redeemable perpetual preferred stock, 6,650,000 issued and outstanding at March 31, 2014 and December 31, 2013 | 166,250 | 166,250 | |||||
Common stock, $.001 par value, 250,000,000 shares authorized, 65,804,748 shares issued and outstanding at March 31, 2014 and 65,205,274 shares issued and outstanding at December 31, 2013 | 66 | 65 | |||||
Additional paid in capital | 913,442 | 900,959 | |||||
Retained earnings | — | — | |||||
Total stockholders’ equity | 1,264,758 | 1,252,274 | |||||
Total liabilities and stockholders’ equity | $ | 2,759,742 | $ | 2,680,588 |
Three months ended March 31, | |||||||
2014 | 2013 | ||||||
Cash flow from operating activities | |||||||
Net income | $ | 31,644 | $ | 16,727 | |||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||
Depreciation and amortization | 23,269 | 23,039 | |||||
Loss on early extinguishment of debt | — | 1,700 | |||||
Straight line revenues, net of reserve | 711 | (4,607 | ) | ||||
Amortization of deferred financing costs | 743 | 918 | |||||
Amortization of lease contracts above and below market value | (599 | ) | (598 | ) | |||
Compensation paid with Company common shares | 1,593 | 1,903 | |||||
Changes in operating assets and liabilities | |||||||
Rents and other receivables | (979 | ) | (6,360 | ) | |||
Deferred costs | (52 | ) | (119 | ) | |||
Prepaid expenses and other assets | (5,933 | ) | (7,173 | ) | |||
Accounts payable and accrued liabilities | (1,191 | ) | 6,299 | ||||
Accrued interest payable | (8,012 | ) | 11,446 | ||||
Prepaid rents and other liabilities | 3,297 | 4,637 | |||||
Net cash provided by operating activities | 44,491 | 47,812 | |||||
Cash flow from investing activities | |||||||
Investments in real estate – development | (80,159 | ) | (7,340 | ) | |||
Interest capitalized for real estate under development | (2,965 | ) | (210 | ) | |||
Improvements to real estate | (425 | ) | (809 | ) | |||
Additions to non-real estate property | (220 | ) | (18 | ) | |||
Net cash used in investing activities | (83,769 | ) | (8,377 | ) | |||
Cash flow from financing activities | |||||||
Line of credit: | |||||||
Proceeds | — | 62,000 | |||||
Repayments | — | (20,000 | ) | ||||
Mortgage notes payable: | |||||||
Proceeds | — | 115,000 | |||||
Lump sum payoffs | — | (138,300 | ) | ||||
Repayments | — | (1,300 | ) | ||||
Unsecured term loan: | |||||||
Proceeds | 96,000 | — | |||||
Payments of financing costs | (96 | ) | (1,715 | ) | |||
Exercises of stock options | 3,457 | — | |||||
Common stock repurchases | — | (37,792 | ) | ||||
Dividends and distributions: | |||||||
Common shares | (16,301 | ) | (12,668 | ) | |||
Preferred shares | (6,811 | ) | (6,811 | ) | |||
Redeemable noncontrolling interests – operating partnership | (3,918 | ) | (3,757 | ) | |||
Net cash provided by (used in) financing activities | 72,331 | (45,343 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 33,053 | (5,908 | ) | ||||
Cash and cash equivalents, beginning | 38,733 | 23,578 | |||||
Cash and cash equivalents, ending | $ | 71,786 | $ | 17,670 | |||
Supplemental information: | |||||||
Cash paid for interest | $ | 18,802 | $ | 1,700 | |||
Deferred financing costs capitalized for real estate under development | $ | 170 | $ | 15 | |||
Construction costs payable capitalized for real estate under development | $ | 25,489 | $ | 2,609 | |||
Redemption of operating partnership units | $ | 2,100 | $ | 68,900 | |||
Adjustments to redeemable noncontrolling interests - operating partnership | $ | (9,334 | ) | $ | 3,011 | ||
Property | Property Location | Year Built/ Renovated | Gross Building Area (2) | Computer Room Square Feet ("CRSF") (2) | CRSF % Leased (3) | CRSF % Commenced (4) | Critical Load MW (5) | Critical Load % Leased (3) | Critical Load % Commenced (4) | ||||||||||||||||
Stabilized (1) | |||||||||||||||||||||||||
ACC2 | Ashburn, VA | 2001/2005 | 87,000 | 53,000 | 100 | % | 100 | % | 10.4 | 100 | % | 100 | % | ||||||||||||
ACC3 | Ashburn, VA | 2001/2006 | 147,000 | 80,000 | 100 | % | 100 | % | 13.9 | 100 | % | 100 | % | ||||||||||||
ACC4 | Ashburn, VA | 2007 | 347,000 | 172,000 | 100 | % | 100 | % | 36.4 | 100 | % | 100 | % | ||||||||||||
ACC5 | Ashburn, VA | 2009-2010 | 360,000 | 176,000 | 98 | % | 98 | % | 36.4 | 98 | % | 98 | % | ||||||||||||
ACC6 | Ashburn, VA | 2011-2013 | 262,000 | 130,000 | 100 | % | 100 | % | 26.0 | 100 | % | 100 | % | ||||||||||||
CH1 | Elk Grove Village, IL | 2008-2012 | 485,000 | 231,000 | 100 | % | 100 | % | 36.4 | 100 | % | 100 | % | ||||||||||||
NJ1 Phase I | Piscataway, NJ | 2010 | 180,000 | 88,000 | 64 | % | 64 | % | 18.2 | 52 | % | 52 | % | ||||||||||||
SC1 Phase I | Santa Clara, CA | 2011 | 180,000 | 88,000 | 100 | % | 100 | % | 18.2 | 100 | % | 100 | % | ||||||||||||
VA3 (6) | Reston, VA | 2003 | 256,000 | 147,000 | 74 | % | 74 | % | 13.0 | 75 | % | 75 | % | ||||||||||||
VA4 | Bristow, VA | 2005 | 230,000 | 90,000 | 100 | % | 100 | % | 9.6 | 100 | % | 100 | % | ||||||||||||
Total Operating Properties | 2,534,000 | 1,255,000 | 94 | % | 94 | % | 218.5 | 94 | % | 94 | % |
(1) | Stabilized operating properties are either 85% or more leased and commenced or have been in service for 24 months or greater. |
(2) | Gross building area is the entire building area, including CRSF (the portion of gross building area where our customers' computer servers are located), common areas, areas controlled by us (such as the mechanical, telecommunications and utility rooms) and, in some facilities, individual office and storage space leased on an as available basis to our customers. |
(3) | Percentage leased is expressed as a percentage of CRSF or critical load, as applicable, that is subject to an executed lease. Leases executed as of April 1, 2014 represent $275 million of base rent on a GAAP basis and $288 million of base rent on a cash basis over the next twelve months. Both amounts include $17 million of revenue from management fees over the next twelve months. |
(4) | Percentage commenced is expressed as a percentage of CRSF or critical load, as applicable, where the lease has commenced under generally accepted accounting principles. |
(5) | Critical load (also referred to as IT load or load used by customers' servers or related equipment) is the power available for exclusive use by customers expressed in terms of megawatt, or MW, or kilowatt, or kW (1 MW is equal to 1,000 kW). |
(6) | As of April 23, 2014, VA3 is 95% leased on a critical load basis and 94% leased on a CRSF basis. |
Year of Lease Expiration | Number of Leases Expiring (1) | CRSF of Expiring Commenced Leases (in thousands) (2) | % of Leased CRSF | Total kW of Expiring Commenced Leases (2) | % of Leased kW | % of Annualized Base Rent (3) | ||||||||||||
2014 | 2 | 8 | 0.7 | % | 1,705 | 0.8 | % | 1.1 | % | |||||||||
2015 | 4 | 70 | 5.9 | % | 13,812 | 6.7 | % | 6.6 | % | |||||||||
2016 | 4 | 32 | 2.7 | % | 4,686 | 2.3 | % | 2.4 | % | |||||||||
2017 | 14 | 102 | 8.6 | % | 18,106 | 8.9 | % | 8.9 | % | |||||||||
2018 | 19 | 215 | 18.2 | % | 39,298 | 19.1 | % | 18.4 | % | |||||||||
2019 | 13 | 171 | 14.5 | % | 31,337 | 15.2 | % | 14.8 | % | |||||||||
2020 | 10 | 106 | 9.0 | % | 16,496 | 8.0 | % | 8.7 | % | |||||||||
2021 | 9 | 159 | 13.5 | % | 27,682 | 13.4 | % | 13.8 | % | |||||||||
2022 | 6 | 75 | 6.3 | % | 12,812 | 6.2 | % | 7.1 | % | |||||||||
2023 | 4 | 48 | 4.1 | % | 6,475 | 3.1 | % | 2.8 | % | |||||||||
After 2023 | 12 | 196 | 16.5 | % | 33,425 | 16.3 | % | 15.4 | % | |||||||||
Total | 97 | 1,182 | 100 | % | 205,834 | 100 | % | 100 | % |
(1) | Represents 34 customers with 97 lease expiration dates. Top four customers represent 62% of annualized base rent. |
(2) | CRSF is that portion of gross building area where customers locate their computer servers. One MW is equal to 1,000 kW. |
(3) | Annualized base rent represents the monthly contractual base rent (defined as cash base rent before abatements) multiplied by 12 for commenced leases as of April 1, 2014. |
Property | Property Location | Gross Building Area (1) | CRSF (2) | Critical Load MW (3) | Estimated Total Cost (4) | Construction in Progress & Land Held for Development (5) | CRSF % Pre- leased | Critical Load % Pre- leased | |||||||||||||||
Current Development Projects | |||||||||||||||||||||||
SC1 Phase IIA | Santa Clara, CA | 90,000 | 44,000 | 9.1 | $106,000 - $112,000 | $ | 94,018 | 50 | % | 50 | % | ||||||||||||
ACC7 Phase I | Ashburn, VA | 126,000 | 70,000 | 11.9 | 90,000 - 95,000 | 79,214 | 0 | % | 0 | % | |||||||||||||
216,000 | 114,000 | 21.0 | 196,000 - 207,000 | 173,232 | |||||||||||||||||||
Future Development Projects/Phases | |||||||||||||||||||||||
SC1 Phase IIB | Santa Clara, CA | 90,000 | 44,000 | 9.1 | 54,000 - 58,000 | 54,051 | |||||||||||||||||
ACC7 Phases II to IV | Ashburn, VA | 320,000 | 176,000 | 29.7 | 85,000 - 90,000 | 72,796 | |||||||||||||||||
NJ1 Phase II | Piscataway, NJ | 180,000 | 88,000 | 18.2 | 39,212 | 39,212 | |||||||||||||||||
590,000 | 308,000 | 57.0 | $178,212 - $187,212 | 166,059 | |||||||||||||||||||
Land Held for Development | |||||||||||||||||||||||
ACC8 | Ashburn, VA | 100,000 | 50,000 | 10.4 | 3,986 | ||||||||||||||||||
CH2 | Elk Grove Village, IL | 338,000 | 167,000 | 25.6 | 16,782 | ||||||||||||||||||
SC2 | Santa Clara, CA | 200,000 | 125,000 | 26.0 | 5,554 | ||||||||||||||||||
638,000 | 342,000 | 62.0 | 26,322 | ||||||||||||||||||||
Total | 1,444,000 | 764,000 | 140.0 | $ | 365,613 |
(1) | Gross building area is the entire building area, including CRSF (the portion of gross building area where our customers’ computer servers are located), common areas, areas controlled by us (such as the mechanical, telecommunications and utility rooms) and, in some facilities, individual office and storage space leased on an as available basis to our customers. The respective amounts listed for each of the “Land Held for Development” sites are estimates. |
(2) | CRSF is that portion of gross building area where customers locate their computer servers. The respective amounts listed for each of the “Land Held for Development” sites are estimates. |
(3) | Critical load (also referred to as IT load or load used by customers’ servers or related equipment) is the power available for exclusive use by customers expressed in terms of MW or kW (1 MW is equal to 1,000 kW). The respective amounts listed for each of the “Land Held for Development” sites are estimates. |
(4) | Current development projects include land, capitalization for construction and development and capitalized interest and operating carrying costs, as applicable, upon completion. Future development projects/phases other than SC1 Phase IIB include land, shell and underground work through Phase I opening only. SC1 Phase IIB also includes a portion of the electrical and mechanical infrastructure. |
(5) | Amount capitalized as of March 31, 2014. Future development projects/phases other than SC1 Phase IIB include land, shell and underground work through Phase I opening only. SC1 Phase IIB also includes a portion of the electrical and mechanical infrastructure. |
March 31, 2014 | ||||||||||||
Amounts | % of Total | Rates | Maturities (years) | |||||||||
Secured | $ | 115,000 | 12 | % | 2.0 | % | 4.0 | |||||
Unsecured | 850,000 | 88 | % | 4.7 | % | 6.7 | ||||||
Total | $ | 965,000 | 100 | % | 4.4 | % | 6.4 | |||||
Fixed Rate Debt: | ||||||||||||
Unsecured Notes due 2021 | $ | 600,000 | 62 | % | 5.9 | % | 7.5 | |||||
Fixed Rate Debt | 600,000 | 62 | % | 5.9 | % | 7.5 | ||||||
Floating Rate Debt: | ||||||||||||
Unsecured Credit Facility | — | — | — | 2.0 | ||||||||
Unsecured Term Loan | 250,000 | 26 | % | 1.9 | % | 4.9 | ||||||
ACC3 Term Loan | 115,000 | 12 | % | 2.0 | % | 4.0 | ||||||
Floating Rate Debt | 365,000 | 38 | % | 1.9 | % | 4.6 | ||||||
Total | $ | 965,000 | 100 | % | 4.4 | % | 6.4 |
Note: | We capitalized interest and deferred financing cost amortization of $3.1 million during the three months ended March 31, 2014. |
Year | Fixed Rate | Floating Rate | Total | % of Total | Rates | |||||||||||||||
2014 | — | — | — | — | — | |||||||||||||||
2015 | — | — | — | — | — | |||||||||||||||
2016 | — | 3,750 | (2) | 3,750 | 0.4 | % | 2.0 | % | ||||||||||||
2017 | — | 8,750 | (2) | 8,750 | 0.9 | % | 2.0 | % | ||||||||||||
2018 | — | 102,500 | (2) | 102,500 | 10.6 | % | 2.0 | % | ||||||||||||
2019 | — | 250,000 | (3) | 250,000 | 25.9 | % | 1.9 | % | ||||||||||||
2020 | — | — | — | — | — | |||||||||||||||
2021 | 600,000 | (1) | — | 600,000 | 62.2 | % | 5.9 | % | ||||||||||||
Total | $ | 600,000 | $ | 365,000 | $ | 965,000 | 100 | % | 4.4 | % |
(1) | The 5.875% Unsecured Notes are due September 15, 2021. |
(2) | The ACC3 Term Loan matures on March 27, 2018 with no extension option. Quarterly principal payments of $1.25 million begin on April 1, 2016, increase to $2.5 million on April 1, 2017 and continue through maturity. |
(3) | The Unsecured Term Loan matures on February 15, 2019 with no extension option. |
3/31/14 | 12/31/13 | ||
Interest Coverage Ratio (not less than 2.0) | 5.7 | 5.8 | |
Total Debt to Gross Asset Value (not to exceed 60%) | 30.3% | 28.2% | |
Secured Debt to Total Assets (not to exceed 40%) | 3.6% | 3.7% | |
Total Unsecured Assets to Unsecured Debt (not less than 150%) | 329.5% | 364.8% |
(1) | These selected metrics relate to DuPont Fabros Technology, LP's outstanding unsecured notes. DuPont Fabros Technology, Inc. is the general partner of DuPont Fabros Technology, LP. |
Line of Credit | $ | — | |||||||||||||||
Mortgage Notes Payable | 115,000 | ||||||||||||||||
Unsecured Term Loan | 250,000 | ||||||||||||||||
Unsecured Notes | 600,000 | ||||||||||||||||
Total Debt | 965,000 | 29.5 | % | ||||||||||||||
Common Shares | 81 | % | 65,805 | ||||||||||||||
Operating Partnership (“OP”) Units | 19 | % | 15,585 | ||||||||||||||
Total Shares and Units | 100 | % | 81,390 | ||||||||||||||
Common Share Price at March 31, 2014 | $ | 24.07 | |||||||||||||||
Common Share and OP Unit Capitalization | $ | 1,959,057 | |||||||||||||||
Preferred Stock ($25 per share liquidation preference) | 351,250 | ||||||||||||||||
Total Equity | 2,310,307 | 70.5 | % | ||||||||||||||
Total Market Capitalization | $ | 3,275,307 | 100.0 | % |
Q1 2014 | Q1 2013 | ||||
Weighted Average Amounts Outstanding for EPS Purposes: | |||||
Common Shares - basic | 65,348,269 | 65,089,972 | |||
Shares issued from assumed conversion of: | |||||
- Restricted Shares | 99,904 | 99,720 | |||
- Stock Options | 375,748 | 739,025 | |||
- Performance Units | — | — | |||
Total Common Shares - diluted | 65,823,921 | 65,928,717 | |||
Weighted Average Amounts Outstanding for FFO, Normalized FFO and AFFO Purposes: | |||||
Common Shares - basic | 65,348,269 | 65,089,972 | |||
OP Units - basic | 15,607,937 | 16,167,639 | |||
Total Common Shares and OP Units | 80,956,206 | 81,257,611 | |||
Shares and OP Units issued from assumed conversion of: | |||||
- Restricted Shares | 99,904 | 99,720 | |||
- Stock Options | 375,748 | 739,025 | |||
- Performance Units | — | — | |||
Total Common Shares and Units - diluted | 81,431,858 | 82,096,356 | |||
Period Ending Amounts Outstanding: | |||||
Common Shares | 65,804,748 | ||||
OP Units | 15,585,537 | ||||
Total Common Shares and Units | 81,390,285 |
Expected Q2 2014 per share | Expected 2014 per share | ||
Net income per common share and unit - diluted | $0.30 to $0.31 | $1.13 to $1.21 | |
Depreciation and amortization, net | 0.29 | 1.19 | |
FFO per share - diluted (1) | $0.59 to $0.60 | $2.32 to $2.40 | |
Loss on early extinguishment of debt | — | — | |
Normalized FFO per share - diluted (1) | $0.59 to $0.60 | $2.32 to $2.40 |
2014 Debt Assumptions | |
Weighted average debt outstanding | $987.0 million |
Weighted average interest rate (one month LIBOR average 0.17%) | 4.47% |
Total interest costs | $44.1 million |
Amortization of deferred financing costs | 3.7 million |
Interest expense capitalized | (9.6) million |
Deferred financing costs amortization capitalized | (0.6) million |
Total interest expense after capitalization | $37.6 million |
2014 Other Guidance Assumptions | |
Total revenues | $405 to $415 million |
Base rent (included in total revenues) | $282 to $288 million |
Straight-line revenues (included in base rent) (2) | $(4) to $(8) million |
General and administrative expense | $17 to $18 million |
Investments in real estate - development (3) | $270 to $300 million |
Improvements to real estate excluding development | $4 million |
Preferred stock dividends | $27 million |
Annualized common stock dividend | $1.40 per share |
Weighted average common shares and OP units - diluted | 81 million |
Common share repurchase | No amounts budgeted |
Acquisitions of income producing properties | No amounts budgeted |
(1) | For information regarding FFO and Normalized FFO, see “Reconciliations of Net Income to FFO, Normalized FFO and AFFO” on page 6 of this earnings release. |
(2) | Straight-line revenues are projected to reduce total revenues in 2014 as cash rents are projected to be higher than GAAP rents. |
(3) | Represents cash spend expected in 2014 for the ACC7, SC1 Phase IIA, SC1 Phase IIB and CH2 developments. The SC1 Phase IIB development is forecasted to begin in the second quarter of 2014 with an in service date in the first quarter of 2015. The CH2 development is forecasted to begin in the second quarter of 2014 with an in service date in the middle of 2015. |