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 October 29, 2015 |
DUPONT FABROS TECHNOLOGY, INC. | |
October 29, 2015 | /s/ Richard A. Montfort, Jr. |
Richard A. Montfort, Jr. | |
Executive Vice President, General Counsel and Secretary |
Exhibit No. | Description | |
99.1 | Press Release dated October 29, 2015 |
Third Quarter 2015 |
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 | 1-6 | ||
Consolidated Statements of Operations | 7 | ||
Reconciliations of Net Income to NAREIT FFO, Normalized FFO and AFFO | 8 | ||
Consolidated Balance Sheets | 9 | ||
Consolidated Statements of Cash Flows | 10 | ||
Operating Properties | 11 | ||
Lease Expirations | 12 | ||
Top Customers | 13 | ||
Same Store Analysis | 14-15 | ||
Development Projects | 16 | ||
Debt Summary and Debt Principal Repayments | 17 | ||
Selected Unsecured Debt Metrics and Capital Structure | 18 | ||
Common Share and Operating Partnership Unit Weighted Average Amounts Outstanding | 19 | ||
2015 Guidance | 20 |
• | As of October 29, 2015, our operating portfolio was 97% leased and 93% commenced as measured by computer room square feet ("CRSF") and 95% leased and 91% commenced as measured by critical load (in megawatts, or "MW"). |
• | Quarterly Highlights: |
• | Placed CH2 Phase I into service totaling 7.40 MW and 45,000 CRSF, now 100% leased. |
• | Commenced two leases totaling 2.56 MW and 14,386 CRSF. |
• | Increased capacity under the line of credit from $560 million to $700 million. |
• | Subsequent to the third quarter 2015: |
• | Leased 26.53 MW and 162,496 CRSF consisting of: |
▪ | The entire 10.40 MW and 53,397 CRSF of our ACC2 facility. |
▪ | The space formerly occupied by our bankrupt customer. This is comprised of four leases totaling 4.13 MW and 38,852 CRSF. |
▪ | Three additional leases totaling 12.00 MW and 70,247 CRSF, resulting in ACC7 Phase I and CH2 Phase I being 100% leased and commenced. |
• | Extended one lease totaling 1.49 MW and 8,461 CRSF. |
• | Increased operating income excluding depreciation of $0.08 per share which excludes the negative impact from the bankrupt customer, partially offset by |
• | Revenue of $0.03 per share not recognized from the bankrupt customer and |
• | Increased interest expense of $0.03 per share due to a higher level of outstanding debt related to development financing. |
• | Increased Normalized FFO of $0.02 per share and |
• | Increased add-back of straight-line revenue as a result of $0.02 per share of rent received from the bankrupt customer being applied to their straight-line receivable balance. |
• | Increased operating income excluding depreciation of $0.22 per share which excludes the negative impact from the bankrupt customer, partially offset by |
• | Revenue of $0.10 per share not recognized from bankrupt customer, |
• | Write-off of $0.02 per share of straight-line receivables and intangible assets related to the bankrupt customer, and |
• | Increased interest expense of $0.05 per share due to a higher level of outstanding debt related to development financing. |
• | Increased Normalized FFO of $0.05 per share, |
• | Increased add-back of straight-line revenue as a result of rent received from bankrupt customer not recognized as revenue and increased cash rents totaling $0.09 per share, |
• | Add-back of non-cash write-offs of straight-line receivables and intangible assets of $0.02 per share, partially offset by |
• | Lower stock compensation expense add-back of $0.01 per share. |
• | Commenced two leases totaling 2.56 MW and 14,386 CRSF. One of these leases was at CH2 Phase I for 1.42 MW and 8,886 CRSF and the other was at ACC5 for 1.14 MW and 5,500 CRSF. |
• | Extended one lease at ACC5 totaling 0.57 MW and 2,700 CRSF. This lease was scheduled to expire in 2016 and was extended by 5.0 years to now expire in 2021. Compared to the rate in effect at the time of renewal, cash base rent will be 3.0% higher upon the expiration of the original lease term. GAAP base rent will be 24.2% higher immediately. |
• | Signed eight leases with a weighted average lease term of 6.1 years totaling 26.53 MW and 162,496 CRSF. |
• | Two of these leases were with one customer at ACC7 totaling 6.00 MW and 34,409 CRSF. One of the leases was in Phase I (3.00 MW) which commenced in October 2015 and one pre-lease is in Phase II (3.00 MW) which is projected to commence in the fourth quarter of 2015 upon the opening of Phase II. ACC7 Phase I is now 100% leased with these leases and ACC7 Phase II is 67% pre-leased. |
• | One lease was at CH2 Phase I totaling 6.00 MW and 35,838 CRSF. This lease commenced in October 2015. CH2 Phase I is now 100% leased with this lease. |
• | One lease was for the entire 10.4 MW and 53,397 CRSF at ACC2, the space recently vacated by Yahoo!. This lease is expected to commence in the first quarter of 2016. Compared to the lease rates in effect at the expiration of Yahoo’s! lease, cash base rents for the new lease will be 41.4% lower and GAAP base rents will be 12.6% lower. Total rents including operating expense recovery will be 31.4% lower for cash and 9.6% lower for GAAP. We believe that this magnitude of decline is specific to the ACC2 data center facility and will not be applicable to the remaining portfolio. ACC2 is the Company’s smallest data center facility and, primarily for that reason, has the highest cost of operations and cooling. Although base rent had to be decreased to make ACC2 market-competitive, on a total cost of occupancy basis - the total of base rent, operating costs and cooling - ACC2’s new customer will pay as much at ACC2 as a super wholesale customer would pay at ACC7. |
• | Four leases were with the purchaser of Net Data Centers, Anexio, at ACC4, ACC5, NJ1 and VA3, totaling 4.13 MW and 38,852 CRSF in the aggregate, as described above. |
• | Extended one lease at ACC7 Phase I totaling 1.49 MW and 8,461 CRSF. This lease was scheduled to expire in 2017 and was extended 4.2 years to now expire in 2021. Compared to the rate in effect at the time of renewal, cash base rent will be 10.0% lower upon the expiration of the original lease term. GAAP base rent will be 2.1% lower immediately. |
• | Signed 15 leases with a weighted average lease term of 6.5 years totaling 40.99 MW and 239,096 CRSF that are expected to generate approximately $49.4 million of annualized GAAP base rent revenue which is equivalent to a GAAP rate of $101 per kW per month. |
• | Commenced 15 leases totaling 31.44 MW and 182,523 CRSF. |
• | Extended the maturity of seven leases totaling 12.24 MW and 69,081 CRSF by a weighted average of 3.0 years. Compared to the rates in effect when the extension was executed, cash base rents will be an average of 5.4% higher upon the expiration of the original lease terms. GAAP base rents will be an average of 4.5% higher immediately. The average GAAP rate related to these extensions was $110 per kW per month. |
• | $0.01 per share from positive leasing results and |
• | $0.02 per share from lower interest expense primarily due to increased capitalized interest. |
• | $0.05 per share of decreased revenue from Yahoo! vacating ACC2 and the new lease at ACC2 not commencing until the first quarter of 2016, partially offset by |
• | $0.03 per share of increased operating income excluding depreciation from new lease commencements including the re-lease of the Net Data Centers space, partially offset by increased sales and marketing expenses, and |
• | $0.01 per share from lower interest expense primarily due to increased capitalized interest. |
• | Decrease in mid-point of Normalized FFO of $0.01 per share, |
• | Decrease in the add-back of straight-line revenues of $0.03 per share, and |
• | Increase in capitalized leasing commissions of $0.02 per share due to the heavy volume of leases executed in October. |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues: | |||||||||||||||
Base rent | $ | 76,771 | $ | 72,268 | $ | 221,046 | $ | 211,927 | |||||||
Recoveries from tenants | 35,223 | 31,211 | 103,010 | 92,864 | |||||||||||
Other revenues | 3,343 | 2,099 | 12,421 | 4,824 | |||||||||||
Total revenues | 115,337 | 105,578 | 336,477 | 309,615 | |||||||||||
Expenses: | |||||||||||||||
Property operating costs | 33,209 | 29,127 | 94,362 | 87,004 | |||||||||||
Real estate taxes and insurance | 5,348 | 4,108 | 16,387 | 10,986 | |||||||||||
Depreciation and amortization | 26,433 | 24,799 | 77,645 | 71,671 | |||||||||||
General and administrative | 4,422 | 4,561 | 13,233 | 12,669 | |||||||||||
Other expenses | 2,947 | 1,517 | 15,752 | 3,989 | |||||||||||
Total expenses | 72,359 | 64,112 | 217,379 | 186,319 | |||||||||||
Operating income | 42,978 | 41,466 | 119,098 | 123,296 | |||||||||||
Interest income | 10 | 6 | 51 | 113 | |||||||||||
Interest: | |||||||||||||||
Expense incurred | (11,691 | ) | (9,032 | ) | (29,042 | ) | (24,563 | ) | |||||||
Amortization of deferred financing costs | (904 | ) | (805 | ) | (2,240 | ) | (2,271 | ) | |||||||
Loss on early extinguishment of debt | — | (1,363 | ) | — | (1,701 | ) | |||||||||
Net income | 30,393 | 30,272 | 87,867 | 94,874 | |||||||||||
Net income attributable to redeemable noncontrolling interests – operating partnership | (4,520 | ) | (4,501 | ) | (12,901 | ) | (14,315 | ) | |||||||
Net income attributable to controlling interests | 25,873 | 25,771 | 74,966 | 80,559 | |||||||||||
Preferred stock dividends | (6,811 | ) | (6,811 | ) | (20,433 | ) | (20,433 | ) | |||||||
Net income attributable to common shares | $ | 19,062 | $ | 18,960 | $ | 54,533 | $ | 60,126 | |||||||
Earnings per share – basic: | |||||||||||||||
Net income attributable to common shares | $ | 0.29 | $ | 0.29 | $ | 0.83 | $ | 0.91 | |||||||
Weighted average common shares outstanding | 65,041,159 | 65,507,879 | 65,190,737 | 65,448,034 | |||||||||||
Earnings per share – diluted: | |||||||||||||||
Net income attributable to common shares | $ | 0.29 | $ | 0.29 | $ | 0.82 | $ | 0.91 | |||||||
Weighted average common shares outstanding | 65,561,891 | 66,298,221 | 65,918,976 | 66,025,002 | |||||||||||
Dividends declared per common share | $ | 0.42 | $ | 0.35 | $ | 1.26 | $ | 1.05 |
Three months ended September 30, | Nine months ended September30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net income | $ | 30,393 | $ | 30,272 | $ | 87,867 | $ | 94,874 | |||||||
Depreciation and amortization | 26,433 | 24,799 | 77,645 | 71,671 | |||||||||||
Less: Non real estate depreciation and amortization | (202 | ) | (195 | ) | (503 | ) | (552 | ) | |||||||
NAREIT FFO | 56,624 | 54,876 | 165,009 | 165,993 | |||||||||||
Preferred stock dividends | (6,811 | ) | (6,811 | ) | (20,433 | ) | (20,433 | ) | |||||||
NAREIT FFO attributable to common shares and common units | 49,813 | 48,065 | 144,576 | 145,560 | |||||||||||
Severance expense and equity acceleration | 546 | — | 6,124 | — | |||||||||||
Loss on early extinguishment of debt | — | 1,363 | — | 1,701 | |||||||||||
Normalized FFO attributable to common shares and common units | 50,359 | 49,428 | 150,700 | 147,261 | |||||||||||
Straight-line revenues, net of reserve | 4,260 | 2,280 | 13,410 | 4,296 | |||||||||||
Amortization and write-off of lease contracts above and below market value | (585 | ) | (598 | ) | (763 | ) | (1,795 | ) | |||||||
Compensation paid with Company common shares | 1,326 | 1,545 | 3,955 | 4,645 | |||||||||||
Non real estate depreciation and amortization | 202 | 195 | 503 | 552 | |||||||||||
Amortization of deferred financing costs | 904 | 805 | 2,240 | 2,271 | |||||||||||
Improvements to real estate | (1,185 | ) | (1,063 | ) | (2,433 | ) | (2,083 | ) | |||||||
Capitalized leasing commissions | (14 | ) | (322 | ) | (2,026 | ) | (1,899 | ) | |||||||
AFFO attributable to common shares and common units | $ | 55,267 | $ | 52,270 | $ | 165,586 | $ | 153,248 | |||||||
NAREIT FFO attributable to common shares and common units per share - diluted | $ | 0.61 | $ | 0.59 | $ | 1.78 | $ | 1.78 | |||||||
Normalized FFO attributable to common shares and common units per share - diluted | $ | 0.62 | $ | 0.60 | $ | 1.85 | $ | 1.80 | |||||||
AFFO attributable to common shares and common units per share - diluted | $ | 0.68 | $ | 0.64 | $ | 2.03 | $ | 1.88 | |||||||
Weighted average common shares and common units outstanding - diluted | 81,066,670 | 81,862,208 | 81,429,886 | 81,608,159 |
September 30, 2015 | December 31, 2014 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Income producing property: | |||||||
Land | $ | 92,840 | $ | 83,793 | |||
Buildings and improvements | 2,799,849 | 2,623,539 | |||||
2,892,689 | 2,707,332 | ||||||
Less: accumulated depreciation | (571,996 | ) | (504,869 | ) | |||
Net income producing property | 2,320,693 | 2,202,463 | |||||
Construction in progress and land held for development | 330,200 | 358,965 | |||||
Net real estate | 2,650,893 | 2,561,428 | |||||
Cash and cash equivalents | 67,836 | 29,598 | |||||
Rents and other receivables, net | 8,605 | 8,113 | |||||
Deferred rent, net | 128,955 | 142,365 | |||||
Lease contracts above market value, net | 6,251 | 8,054 | |||||
Deferred costs, net | 38,510 | 38,495 | |||||
Prepaid expenses and other assets | 47,670 | 48,295 | |||||
Total assets | $ | 2,948,720 | $ | 2,836,348 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Liabilities: | |||||||
Line of credit | $ | — | $ | 60,000 | |||
Mortgage notes payable | 115,000 | 115,000 | |||||
Unsecured term loan | 250,000 | 250,000 | |||||
Unsecured notes payable, net of discount | 848,074 | 600,000 | |||||
Accounts payable and accrued liabilities | 30,273 | 26,973 | |||||
Construction costs payable | 21,534 | 32,949 | |||||
Accrued interest payable | 6,623 | 10,759 | |||||
Dividend and distribution payable | 39,688 | 39,981 | |||||
Lease contracts below market value, net | 4,471 | 7,037 | |||||
Prepaid rents and other liabilities | 69,758 | 65,174 | |||||
Total liabilities | 1,385,421 | 1,207,873 | |||||
Redeemable noncontrolling interests – operating partnership | 399,050 | 513,134 | |||||
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 September 30, 2015 and December 31, 2014 | 185,000 | 185,000 | |||||
Series B cumulative redeemable perpetual preferred stock, 6,650,000 issued and outstanding at September 30, 2015 and December 31, 2014 | 166,250 | 166,250 | |||||
Common stock, $.001 par value, 250,000,000 shares authorized, 65,381,914 shares issued and outstanding at September 30, 2015 and 66,061,804 shares issued and outstanding at December 31, 2014 | 65 | 66 | |||||
Additional paid in capital | 812,934 | 764,025 | |||||
Retained earnings | — | — | |||||
Total stockholders’ equity | 1,164,249 | 1,115,341 | |||||
Total liabilities and stockholders’ equity | $ | 2,948,720 | $ | 2,836,348 |
Nine months ended September 30, | |||||||
2015 | 2014 | ||||||
Cash flow from operating activities | |||||||
Net income | $ | 87,867 | $ | 94,874 | |||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||
Depreciation and amortization | 77,645 | 71,671 | |||||
Loss on early extinguishment of debt | — | 1,701 | |||||
Straight-line revenues, net of reserve | 13,410 | 4,296 | |||||
Amortization of deferred financing costs | 2,240 | 2,271 | |||||
Amortization and write-off of lease contracts above and below market value | (763 | ) | (1,795 | ) | |||
Compensation paid with Company common shares | 7,990 | 4,645 | |||||
Changes in operating assets and liabilities | |||||||
Rents and other receivables | (492 | ) | 2,623 | ||||
Deferred costs | (2,045 | ) | (1,904 | ) | |||
Prepaid expenses and other assets | 1,741 | (7,088 | ) | ||||
Accounts payable and accrued liabilities | 3,407 | 2,814 | |||||
Accrued interest payable | (4,136 | ) | (8,048 | ) | |||
Prepaid rents and other liabilities | 4,526 | 5,752 | |||||
Net cash provided by operating activities | 191,390 | 171,812 | |||||
Cash flow from investing activities | |||||||
Investments in real estate – development | (154,165 | ) | (188,443 | ) | |||
Land acquisition costs | (8,600 | ) | — | ||||
Interest capitalized for real estate under development | (8,557 | ) | (7,889 | ) | |||
Improvements to real estate | (2,433 | ) | (2,083 | ) | |||
Additions to non-real estate property | (622 | ) | (292 | ) | |||
Net cash used in investing activities | (174,377 | ) | (198,707 | ) | |||
Cash flow from financing activities | |||||||
Line of credit: | |||||||
Proceeds | 120,000 | — | |||||
Repayments | (180,000 | ) | — | ||||
Unsecured term loan: | |||||||
Proceeds | — | 96,000 | |||||
Unsecured notes payable: | |||||||
Proceeds | 248,012 | — | |||||
Payments of financing costs | (4,730 | ) | (3,794 | ) | |||
Equity compensation (payments) proceeds | (7,611 | ) | 2,303 | ||||
Common stock repurchases | (31,912 | ) | — | ||||
Dividends and distributions: | |||||||
Common shares | (82,665 | ) | (62,374 | ) | |||
Preferred shares | (20,433 | ) | (20,433 | ) | |||
Redeemable noncontrolling interests – operating partnership | (19,436 | ) | (14,822 | ) | |||
Net cash provided by (used in) financing activities | 21,225 | (3,120 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 38,238 | (30,015 | ) | ||||
Cash and cash equivalents, beginning | 29,598 | 38,733 | |||||
Cash and cash equivalents, ending | $ | 67,836 | $ | 8,718 | |||
Supplemental information: | |||||||
Cash paid for interest | $ | 41,735 | $ | 40,500 | |||
Deferred financing costs capitalized for real estate under development | $ | 584 | $ | 459 | |||
Construction costs payable capitalized for real estate under development | $ | 21,534 | $ | 35,860 | |||
Redemption of operating partnership units | $ | 598 | $ | 3,000 | |||
Adjustments to redeemable noncontrolling interests - operating partnership | $ | (106,959 | ) | $ | 38,266 |
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 (6) | Ashburn, VA | 2001/2005 | 87,000 | 53,000 | — | % | — | % | 10.4 | — | % | — | % | ||||||||||||
ACC3 | Ashburn, VA | 2001/2006 | 147,000 | 80,000 | 100 | % | 100 | % | 13.9 | 100 | % | 100 | % | ||||||||||||
ACC4 (7) | Ashburn, VA | 2007 | 347,000 | 172,000 | 100 | % | 100 | % | 36.4 | 100 | % | 100 | % | ||||||||||||
ACC5 (7) | Ashburn, VA | 2009-2010 | 360,000 | 176,000 | 96 | % | 96 | % | 36.4 | 96 | % | 96 | % | ||||||||||||
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 (7) | Piscataway, NJ | 2010 | 180,000 | 88,000 | 70 | % | 70 | % | 18.2 | 59 | % | 59 | % | ||||||||||||
SC1 | Santa Clara, CA | 2011-2015 | 360,000 | 173,000 | 100 | % | 100 | % | 36.6 | 100 | % | 100 | % | ||||||||||||
VA3 (7) | Reston, VA | 2003 | 256,000 | 147,000 | 94 | % | 94 | % | 13.0 | 95 | % | 95 | % | ||||||||||||
VA4 | Bristow, VA | 2005 | 230,000 | 90,000 | 100 | % | 100 | % | 9.6 | 100 | % | 100 | % | ||||||||||||
Subtotal – stabilized | 2,714,000 | 1,340,000 | 93 | % | 93 | % | 236.9 | 92 | % | 92 | % | ||||||||||||||
Completed, not Stabilized | |||||||||||||||||||||||||
ACC7 Phase I (8) | Ashburn, VA | 2014 | 126,000 | 67,000 | 75 | % | 75 | % | 12.9 | 77 | % | 77 | % | ||||||||||||
CH2 Phase I (9) | Elk Grove Village, IL | 2015 | 94,000 | 45,000 | 20 | % | 20 | % | 7.4 | 19 | % | 19 | % | ||||||||||||
Subtotal – not stabilized | 220,000 | 112,000 | 53 | % | 53 | % | 20.3 | 56 | % | 56 | % | ||||||||||||||
Total Operating Properties | 2,934,000 | 1,452,000 | 90 | % | 90 | % | 257.2 | 89 | % | 89 | % |
(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 October 1, 2015 represent $297 million of base rent on a GAAP basis and $310 million of base rent on a cash basis over the next twelve months. Both amounts include $18 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 October 29, 2015, ACC2 was 100% leased on a critical load and CRSF basis. |
(7) | In October 2015, new leases were executed with the purchaser of Net Data Centers' operations at our ACC4, ACC5, NJ1 Phase I and VA3 facilities. The new leases at ACC4, ACC5 and NJ1 Phase I are for the same amount of CRSF as the Net Data Centers leases, but are for a reduced amount of critical load. Giving effect to these decreases, ACC4, ACC5 and NJ1 Phase I were 97%, 96% and 52% leased and commenced on a critical load basis, respectively as of October 29, 2015. VA3 remains 95% leased and commenced on a critical load basis. |
(8) | As of October 29, 2015, ACC7 Phase I was 100% leased and commenced on a critical load and CRSF basis. |
(9) | As of October 29, 2015, CH2 Phase I was 100% leased and commenced on a critical load and 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) | ||||||||||||
Month-to-month (4) | 4 | 39 | 3.0 | % | 6,249 | 2.7 | % | 2.4 | % | |||||||||
2015 | — | — | — | % | — | — | % | — | % | |||||||||
2016 | 2 | 9 | 0.7 | % | 1,679 | 0.7 | % | 1.0 | % | |||||||||
2017 | 13 | 84 | 6.5 | % | 13,905 | 6.1 | % | 6.0 | % | |||||||||
2018 | 21 | 180 | 13.8 | % | 34,017 | 14.9 | % | 14.8 | % | |||||||||
2019 | 20 | 291 | 22.4 | % | 51,740 | 22.7 | % | 23.0 | % | |||||||||
2020 | 15 | 182 | 14.0 | % | 32,404 | 14.2 | % | 13.8 | % | |||||||||
2021 | 11 | 160 | 12.3 | % | 26,138 | 11.5 | % | 11.8 | % | |||||||||
2022 | 7 | 89 | 6.8 | % | 15,509 | 6.8 | % | 6.6 | % | |||||||||
2023 | 3 | 29 | 2.2 | % | 4,386 | 1.9 | % | 1.7 | % | |||||||||
2024 | 8 | 112 | 8.6 | % | 19,279 | 8.4 | % | 9.9 | % | |||||||||
After 2024 | 9 | 127 | 9.7 | % | 22,856 | 10.1 | % | 9.0 | % | |||||||||
Total | 113 | 1,302 | 100 | % | 228,162 | 100 | % | 100 | % |
(1) | Represents 38 customers with 113 lease expiration dates. |
(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 October 1, 2015. |
(4) | Comprised of four leases with our bankrupt customer that were terminated on October 20, 2015 when a new customer leased all of the CRSF and 4.13 MW. The new leases expire in 2023. |
Customer | Number of Buildings | Number of Markets | Remaining Term | % of Annualized Base Rent (1) | |||||||||
1 | Microsoft | 6 | 3 | 6.0 | 22.7 | % | |||||||
2 | Facebook | 4 | 1 | 4.8 | 19.9 | % | |||||||
3 | Rackspace | 3 | 2 | 9.8 | 10.3 | % | |||||||
4 | Yahoo! (2) | 2 | 2 | 2.5 | 7.5 | % | |||||||
5 | Fortune 1000 leading Software as a Service (SaaS) Provider, Not Rated | 4 | 2 | 6.9 | 6.5 | % | |||||||
6 | Fortune 25 Investment Grade Rated Company | 2 | 2 | 2.9 | 5.4 | % | |||||||
7 | Server Central | 1 | 1 | 5.9 | 2.8 | % | |||||||
8 | Net Data Centers (3) | 4 | 2 | MTM | 2.4 | % | |||||||
9 | Dropbox | 1 | 1 | 3.3 | 1.8 | % | |||||||
10 | IAC | 1 | 1 | 3.6 | 1.8 | % | |||||||
11 | Symantec | 2 | 1 | 1.7 | 1.5 | % | |||||||
12 | Fortune 25 Investment Grade Rated Company | 2 | 2 | 5.4 | 1.3 | % | |||||||
13 | Zynga | 1 | 1 | 0.6 | 1.3 | % | |||||||
14 | UBS | 1 | 1 | 9.8 | 1.2 | % | |||||||
15 | Sanofi Aventis | 2 | 1 | 5.8 | 1.1 | % | |||||||
Total | 87.5 | % |
(1) | Annualized base rent represents monthly contractual base rent (defined as cash base rent before abatements) multiplied by 12 for commenced leases as of October 1, 2015. |
(2) | Comprised of a lease at ACC4 which is 6.9% of annualized base rent that has been fully subleased to another DFT customer and a lease at NJ1 which is 0.6% of annualized base rent. |
(3) | Comprised of four month-to-month leases with our bankrupt customer that were terminated on October 20, 2015 when a new customer leased all of the CRSF and 4.13 of the MW. The new leases expire in 2023. |
Same Store Properties | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
30-Sep-15 | 30-Sep-14 | % Change | 30-Jun-15 | % Change | 30-Sep-15 | 30-Sep-14 | % Change | |||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||
Base rent | $ | 73,398 | $ | 72,029 | 1.9 | % | $ | 70,626 | 3.9 | % | $ | 214,552 | $ | 211,688 | 1.4 | % | ||||||||||||||
Recoveries from tenants | 34,595 | 31,211 | 10.8 | % | 34,256 | 1.0 | % | 101,973 | 92,864 | 9.8 | % | |||||||||||||||||||
Other revenues | 494 | 461 | 7.2 | % | 486 | 1.6 | % | 1,456 | 1,376 | 5.8 | % | |||||||||||||||||||
Total revenues | 108,487 | 103,701 | 4.6 | % | 105,368 | 3.0 | % | 317,981 | 305,928 | 3.9 | % | |||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||
Property operating costs | 31,232 | 28,613 | 9.2 | % | 28,686 | 8.9 | % | 90,293 | 86,489 | 4.4 | % | |||||||||||||||||||
Real estate taxes and insurance | 5,111 | 3,990 | 28.1 | % | 6,928 | (26.2 | )% | 15,810 | 10,861 | 45.6 | % | |||||||||||||||||||
Other expenses | 10 | 18 | N/M | 30 | N/M | 55 | 95 | (42.1 | )% | |||||||||||||||||||||
Total expenses | 36,353 | 32,621 | 11.4 | % | 35,644 | 2.0 | % | 106,158 | 97,445 | 8.9 | % | |||||||||||||||||||
Net operating income (1) | 72,134 | 71,080 | 1.5 | % | 69,724 | 3.5 | % | 211,823 | 208,483 | 1.6 | % | |||||||||||||||||||
Straight-line revenues, net of reserve | 4,394 | 2,517 | N/M | 4,339 | 1.3 | % | 12,224 | 4,533 | N/M | |||||||||||||||||||||
Amortization of lease contracts above and below market value | (585 | ) | (598 | ) | (2.2 | )% | 415 | N/A | (763 | ) | (1,795 | ) | (57.5 | )% | ||||||||||||||||
Cash net operating income (1) | $ | 75,943 | $ | 72,999 | 4.0 | % | $ | 74,478 | 2.0 | % | $ | 223,284 | $ | 211,221 | 5.7 | % | ||||||||||||||
Note: Same Store Properties represent those properties placed into service on or before January 1, 2014 and excludes ACC7. | ||||||||||||||||||||||||||||||
Same Store, Same Capital Properties | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
30-Sep-15 | 30-Sep-14 | % Change | 30-Jun-15 | % Change | 30-Sep-15 | 30-Sep-14 | % Change | |||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||
Base rent | $ | 62,998 | $ | 64,906 | (2.9 | )% | $ | 61,032 | 3.2 | % | $ | 186,769 | $ | 193,344 | (3.4 | )% | ||||||||||||||
Recoveries from tenants | 26,266 | 26,838 | (2.1 | )% | 26,337 | (0.3 | )% | 80,265 | 80,344 | (0.1 | )% | |||||||||||||||||||
Other revenues | 464 | 435 | 6.7 | % | 457 | 1.5 | % | 1,366 | 1,289 | 6.0 | % | |||||||||||||||||||
Total revenues | 89,728 | 92,179 | (2.7 | )% | 87,826 | 2.2 | % | 268,400 | 274,977 | (2.4 | )% | |||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||
Property operating costs | 24,681 | 24,500 | 0.7 | % | 23,302 | 5.9 | % | 73,568 | 75,162 | (2.1 | )% | |||||||||||||||||||
Real estate taxes and insurance | 3,219 | 3,198 | 0.7 | % | 3,350 | (3.9 | )% | 9,463 | 8,707 | 8.7 | % | |||||||||||||||||||
Other expenses | 9 | 17 | N/M | 14 | N/M | 35 | 77 | (54.5 | )% | |||||||||||||||||||||
Total expenses | 27,909 | 27,715 | 0.7 | % | 26,666 | 4.7 | % | 83,066 | 83,946 | (1.0 | )% | |||||||||||||||||||
Net operating income (1) | 61,819 | 64,464 | (4.1 | )% | 61,160 | 1.1 | % | 185,334 | 191,031 | (3.0 | )% | |||||||||||||||||||
Straight-line revenues, net of reserve | 4,329 | 2,871 | N/M | 4,716 | (8.2 | )% | 12,723 | 5,205 | N/M | |||||||||||||||||||||
Amortization of lease contracts above and below market value | (585 | ) | (598 | ) | (2.2 | )% | 415 | N/A | (763 | ) | (1,795 | ) | (57.5 | )% | ||||||||||||||||
Cash net operating income (1) | $ | 65,563 | $ | 66,737 | (1.8 | )% | $ | 66,291 | (1.1 | )% | $ | 197,294 | $ | 194,441 | 1.5 | % | ||||||||||||||
Note: Same Store, Same Capital properties represent those properties placed into service on or before January 1, 2014 and have less than 10% of additional critical load developed after January 1, 2014. Excludes SC1 and ACC7. (1) See next page for a reconciliation of Net Operating Income and Cash Net Operating Income to GAAP measures. |
Reconciliation of Operating Income to Same Store Net Operating Income and Cash Net Operating Income | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
30-Sep-15 | 30-Sep-14 | 30-Jun-15 | 30-Sep-15 | 30-Sep-14 | |||||||||||||||||
Operating income | $ | 42,978 | $ | 41,466 | $ | 40,898 | $ | 119,098 | $ | 123,296 | |||||||||||
Add-back: non-same store operating loss | 4,464 | 5,395 | 3,718 | 18,970 | 14,128 | ||||||||||||||||
Same Store: | |||||||||||||||||||||
Operating income | 47,442 | 46,861 | 44,616 | 138,068 | 137,424 | ||||||||||||||||
Depreciation and amortization | 24,692 | 24,219 | 25,108 | 73,755 | 71,059 | ||||||||||||||||
Net operating income | 72,134 | 71,080 | 69,724 | 211,823 | 208,483 | ||||||||||||||||
Straight-line revenues, net of reserve | 4,394 | 2,517 | 4,339 | 12,224 | 4,533 | ||||||||||||||||
Amortization of lease contracts above and below market value | (585 | ) | (598 | ) | 415 | (763 | ) | (1,795 | ) | ||||||||||||
Cash net operating income | $ | 75,943 | $ | 72,999 | $ | 74,478 | $ | 223,284 | $ | 211,221 | |||||||||||
Reconciliation of Operating Income to Same Store, Same Capital Net Operating Income and Cash Net Operating Income | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
30-Sep-15 | 30-Sep-14 | 30-Jun-15 | 30-Sep-15 | 30-Sep-14 | |||||||||||||||||
Operating income | $ | 42,978 | $ | 41,466 | $ | 40,898 | $ | 119,098 | $ | 123,296 | |||||||||||
Add-back: non-same store operating (income) loss | (2,110 | ) | 1,564 | (1,397 | ) | 2,452 | 3,521 | ||||||||||||||
Same Store: | |||||||||||||||||||||
Operating income | 40,868 | 43,030 | 39,501 | 121,550 | 126,817 | ||||||||||||||||
Depreciation and amortization | 20,951 | 21,434 | 21,659 | 63,784 | 64,214 | ||||||||||||||||
Net operating income | 61,819 | 64,464 | 61,160 | 185,334 | 191,031 | ||||||||||||||||
Straight-line revenues, net of reserve | 4,329 | 2,871 | 4,716 | 12,723 | 5,205 | ||||||||||||||||
Amortization of lease contracts above and below market value | (585 | ) | (598 | ) | 415 | (763 | ) | (1,795 | ) | ||||||||||||
Cash net operating income | $ | 65,563 | $ | 66,737 | $ | 66,291 | $ | 197,294 | $ | 194,441 |
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 | |||||||||||||||||||||||
ACC7 Phase II (6) | Ashburn, VA | 98,000 | 51,000 | 8.9 | $74,000 - $78,000 | $ | 65,532 | 33 | % | 33 | % | ||||||||||||
ACC7 Phase III | Ashburn, VA | 126,000 | 68,000 | 11.9 | 102,000 - 106,000 | 50,277 | — | % | — | % | |||||||||||||
CH2 Phase II | Elk Grove Village, IL | 74,000 | 35,000 | 5.7 | 60,000 - 64,000 | 45,694 | — | % | — | % | |||||||||||||
298,000 | 154,000 | 26.5 | 236,000 - 248,000 | 161,503 | |||||||||||||||||||
Future Development Projects/Phases | |||||||||||||||||||||||
ACC7 Phase IV | Ashburn, VA | 96,000 | 52,000 | 7.9 | 38,937 | 38,937 | |||||||||||||||||
CH2 Phase III (7) | Elk Grove Village, IL | 168,000 | 80,000 | 12.5 | 142,000 - 146,000 | 71,888 | |||||||||||||||||
NJ1 Phase II | Piscataway, NJ | 180,000 | 88,000 | 18.2 | 39,212 | 39,212 | |||||||||||||||||
444,000 | 220,000 | 38.6 | $220,149 - $224,149 | 150,037 | |||||||||||||||||||
Land Held for Development | |||||||||||||||||||||||
ACC8 | Ashburn, VA | 100,000 | 50,000 | 10.4 | 4,243 | ||||||||||||||||||
CH3 (8) | Elk Grove Village, IL | 214,000 | 119,000 | 22.0 | 8,525 | ||||||||||||||||||
SC2 (9) | Santa Clara, CA | 150,000 | 69,000 | 16.0 | 5,892 | ||||||||||||||||||
464,000 | 238,000 | 48.4 | 18,660 | ||||||||||||||||||||
Total | 1,206,000 | 612,000 | 113.5 | $ | 330,200 |
(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 include land, shell and underground work through the opening of the phase(s) that are either under current development or in service. |
(5) | Amount capitalized as of September 30, 2015. Future development projects/phases include land, shell and underground work through the opening of the phase(s) that are either under current development or in service. |
(6) | As of October 29, 2015, ACC7 Phase II is 67% pre-leased on a critical load and CRSF basis. |
(7) | CH2 Phase III was placed into development in October 2015, and the estimate listed above is for the completion of this phase. |
(8) | Amounts listed for gross building area, CRSF and critical load are current estimates. |
(9) | Amounts listed for gross building area, CRSF and critical load are current estimates. We are currently evaluating the best use for this land. Options include a stand-alone data center, an additional phase of SC1 or a powered base shell. |
September 30, 2015 | ||||||||||||
Amounts | % of Total | Rates | Maturities (years) | |||||||||
Secured | $ | 115,000 | 9 | % | 1.7 | % | 2.5 | |||||
Unsecured | 1,100,000 | 91 | % | 4.9 | % | 5.9 | ||||||
Total | $ | 1,215,000 | 100 | % | 4.6 | % | 5.6 | |||||
Fixed Rate Debt: | ||||||||||||
Unsecured Notes due 2021 | $ | 600,000 | 49 | % | 5.9 | % | 6.0 | |||||
Unsecured Notes due 2023 (1) | 250,000 | 21 | % | 5.6 | % | 7.7 | ||||||
Fixed Rate Debt | 850,000 | 70 | % | 5.8 | % | 6.5 | ||||||
Floating Rate Debt: | ||||||||||||
Unsecured Credit Facility | — | — | % | — | % | 2.6 | ||||||
Unsecured Term Loan | 250,000 | 21 | % | 1.7 | % | 3.8 | ||||||
ACC3 Term Loan | 115,000 | 9 | % | 1.7 | % | 2.5 | ||||||
Floating Rate Debt | 365,000 | 30 | % | 1.7 | % | 3.4 | ||||||
Total | $ | 1,215,000 | 100 | % | 4.6 | % | 5.6 |
Note: | We capitalized interest and deferred financing cost amortization of $2.8 million and $9.1 million during the three and nine months ended September 30, 2015, respectively. |
(1) | Principal amount shown excludes original issue discount of $2.0 million. |
Year | Fixed Rate | Floating Rate | Total | % of Total | Rates | |||||||||||||||
2016 | $ | — | $ | 3,750 | (3) | $ | 3,750 | 0.3 | % | 1.7 | % | |||||||||
2017 | — | 8,750 | (3) | 8,750 | 0.7 | % | 1.7 | % | ||||||||||||
2018 | — | 102,500 | (3) | 102,500 | 8.4 | % | 1.7 | % | ||||||||||||
2019 | — | 250,000 | (4) | 250,000 | 20.6 | % | 1.7 | % | ||||||||||||
2020 | — | — | — | — | — | |||||||||||||||
2021 | 600,000 | (1) | — | 600,000 | 49.4 | % | 5.9 | % | ||||||||||||
2022 | — | — | — | — | — | |||||||||||||||
2023 | 250,000 | (2) | — | 250,000 | 20.6 | % | 5.6 | % | ||||||||||||
Total | $ | 850,000 | $ | 365,000 | $ | 1,215,000 | 100 | % | 4.6 | % |
(1) | The 5.875% Unsecured Notes due 2021 mature on September 15, 2021. |
(2) | The 5.625% Unsecured Notes due 2023 mature on June 15, 2023. Principal amount shown excludes original issue discount of $2.0 million. |
(3) | 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. |
(4) | The Unsecured Term Loan matures on July 21, 2019 with no extension option. |
9/30/15 | 12/31/14 | ||
Interest Coverage Ratio (not less than 2.0) | 4.7 | 6.1 | |
Total Debt to Gross Asset Value (not to exceed 60%) | 34.6% | 30.8% | |
Secured Debt to Total Assets (not to exceed 40%) | 3.3% | 3.5% | |
Total Unsecured Assets to Unsecured Debt (not less than 150%) | 259% | 314% |
(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 | 850,000 | ||||||||||||||||
Total Debt | 1,215,000 | 33.2 | % | ||||||||||||||
Common Shares | 81 | % | 65,382 | ||||||||||||||
Operating Partnership (“OP”) Units | 19 | % | 15,419 | ||||||||||||||
Total Shares and Units | 100 | % | 80,801 | ||||||||||||||
Common Share Price at September 30, 2015 | $ | 25.88 | |||||||||||||||
Common Share and OP Unit Capitalization | $ | 2,091,130 | |||||||||||||||
Preferred Stock ($25 per share liquidation preference) | 351,250 | ||||||||||||||||
Total Equity | 2,442,380 | 66.8 | % | ||||||||||||||
Total Market Capitalization | $ | 3,657,380 | 100.0 | % |
Q3 2015 | Q3 2014 | YTD Q3 2015 | YTD Q3 2014 | ||||||||
Weighted Average Amounts Outstanding for EPS Purposes: | |||||||||||
Common Shares - basic | 65,041,159 | 65,507,879 | 65,190,737 | 65,448,034 | |||||||
Effect of dilutive securities | 520,732 | 790,342 | 728,239 | 576,968 | |||||||
Common Shares - diluted | 65,561,891 | 66,298,221 | 65,918,976 | 66,025,002 | |||||||
Weighted Average Amounts Outstanding for FFO, Normalized FFO and AFFO Purposes: | |||||||||||
Common Shares - basic | 65,041,159 | 65,507,879 | 65,190,737 | 65,448,034 | |||||||
OP Units - basic | 15,419,237 | 15,563,987 | 15,419,566 | 15,583,157 | |||||||
Total Common Shares and OP Units | 80,460,396 | 81,071,866 | 80,610,303 | 81,031,191 | |||||||
Effect of dilutive securities | 606,274 | 790,342 | 819,583 | 576,968 | |||||||
Common Shares and Units - diluted | 81,066,670 | 81,862,208 | 81,429,886 | 81,608,159 | |||||||
Period Ending Amounts Outstanding: | |||||||||||
Common Shares | 65,381,914 | ||||||||||
OP Units | 15,419,237 | ||||||||||
Total Common Shares and Units | 80,801,151 |
Expected Q4 2015 per share | Expected 2015 per share | ||
Net income per common share and common unit - diluted | $0.27 to $0.29 | $1.09 to $1.11 | |
Depreciation and amortization, net | 0.33 | 1.28 | |
NAREIT FFO per common share and common unit - diluted (1) | $0.60 to $0.62 | $2.37 to $2.39 | |
Severance expense and equity accelerations | — | 0.08 | |
Normalized FFO per common share and common unit - diluted (1) | $0.60 to $0.62 | $2.45 to $2.47 | |
Straight-line revenues, net of reserve | 0.02 | 0.18 | |
Amortization of lease contracts above and below market value | — | (0.01) | |
Compensation paid with Company common shares | 0.02 | 0.07 | |
Non real estate depreciation and amortization | — | (0.01) | |
Amortization of deferred financing costs | 0.01 | 0.04 | |
Improvements to real estate | (0.02) to (0.03) | (0.04) to (0.05) | |
Capitalized leasing commissions | (0.01) to (0.02) | (0.03) to (0.04) | |
AFFO per common share and common unit - diluted (1) | $0.60 to $0.64 | $2.63 to $2.67 |
2015 Debt Assumptions | |||
July 30, 2015 Guidance | October 29, 2015 Guidance | ||
Weighted average debt outstanding | $1,165.0 million | $1,165.0 million | |
Weighted average interest rate (one month LIBOR avg. 0.19%) | 4.48% | 4.47% | |
Total interest costs | $52.2 million | $52.1 million | |
Amortization of deferred financing costs | 4.2 million | 3.9 million | |
Interest expense capitalized | (10.7) million | (11.6) million | |
Deferred financing costs amortization capitalized | (0.7) million | (0.8) million | |
Total interest expense after capitalization | $45.0 million | $43.6 million | |
2015 Other Guidance Assumptions | |||
July 30, 2015 Guidance | October 29, 2015 Guidance | ||
Total revenues | $435 to $445 million | $440 to $445 million | |
Base rent (included in total revenues) | $292 to $300 million | $295 to $300 million | |
General and administrative expense | $18 to $19 million | $18 million | |
Investments in real estate - development (2) | $180 to $200 million | $200 to $220 million | |
Improvements to real estate excluding development | $5 million | $4 million | |
Preferred stock dividends | $27 million | $27 million | |
Annualized common stock dividend | $1.68 per share | $1.68 per share | |
Weighted average common shares and OP units - diluted | 82.0 million | 82.0 million | |
Common share repurchase | $31.9 million | $31.9 million | |
Acquisitions of income producing properties | No amounts budgeted | No amounts budgeted |
(1) | For information regarding FFO and Normalized FFO, see “Reconciliations of Net Income to FFO, Normalized FFO and AFFO” in this earnings release. |
(2) | Represents cash spend expected in 2015 for the SC1 Phase IIB, CH2 Phase I, CH2 Phase II, CH2 Phase III, ACC7 Phase II and ACC7 Phase III developments. |
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