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 February 4, 2016 |
DUPONT FABROS TECHNOLOGY, INC. | |
February 4, 2016 | /s/ Richard A. Montfort, Jr. |
Richard A. Montfort, Jr. | |
Executive Vice President, General Counsel and Secretary |
Exhibit No. | Description | |
99.1 | Press Release dated February 4, 2016 |
Fourth 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 Contact: | |
Jeffrey H. Foster Chief Financial Officer jfoster@dft.com (202) 478-2333 |
Table of Contents | |||
Earnings Release | 1-7 | ||
Consolidated Statements of Operations | 8 | ||
Reconciliations of Net Income to NAREIT FFO, Normalized FFO and AFFO | 9 | ||
Consolidated Balance Sheets | 10 | ||
Consolidated Statements of Cash Flows | 11 | ||
Operating Properties | 12 | ||
Lease Expirations | 13 | ||
Top Customers | 14 | ||
Same Store Analysis | 15-16 | ||
Development Projects | 17 | ||
Debt Summary and Debt Principal Repayments | 18 | ||
Selected Unsecured Debt Metrics and Capital Structure | 19 | ||
Common Share and Operating Partnership Unit Weighted Average Amounts Outstanding | 20 | ||
2016 Guidance | 21 |
• | As of February 4, 2016, our operating portfolio was 98% leased and commenced as measured by computer room square feet ("CRSF") and 96% leased and commenced as measured by critical load (in megawatts, or "MW"). |
• | Quarterly Highlights: |
• | Placed ACC7 Phase II into service 100% leased, totaling 8.9 MW and 51,000 CRSF. |
• | Signed 12 new leases totaling 32.37 MW and 193,373 CRSF. Of this amount, 5.84 MW and 30,877 CRSF was executed after our third quarter 2015 earnings call. Included in the fourth quarter's leases were: |
▪ | The entire 10.40 MW and 53,397 CRSF of our ACC2 facility. |
▪ | The space that had been occupied by Net Data Centers ("Net"). This space is comprised of four leases totaling 4.13 MW and 38,852 CRSF. |
▪ | Four additional leases totaling 14.97 MW and 87,116 CRSF, resulting in ACC7 Phases I and II and CH2 Phase I being 100% leased and commenced. |
▪ | Two new leases at ACC5 totaling 1.45 MW and 5,213 CRSF. |
▪ | A pre-lease of CH2 Phase II for 1.42 MW and 8,795 CRSF. |
• | As previously disclosed, extended the term of one lease at ACC7 Phase I totaling 1.49 MW and 8,461 CRSF. |
• | Increased operating income excluding depreciation of $0.01 per share which includes the negative impact of $0.05 per share from the vacancy of ACC2 for the entire quarter, |
• | Bad debt expense of $0.05 in the fourth quarter of 2014 related to Net, a former customer in bankruptcy, partially offset by |
• | Increased interest expense of $0.03 per share due to a higher level of outstanding debt related to development financing. |
• | A lower add-back of $0.04 per share of straight-line revenue resulting from new leases signed in 2015 and the expiration of the Yahoo! lease at ACC2, |
• | Increased capital expenditures at our operating data center facilities of $0.02 per share, partially offset by |
• | Lower amortization of below market value lease contracts of $0.01 per share resulting from the expiration of the Yahoo! lease at ACC2, |
• | Increased Normalized FFO of $0.03 per share. |
• | An impairment charge of $1.52 per share resulting from our decision to market the NJ1 data center for sale, |
• | $0.13 per share related to Net’s February 2015 bankruptcy filing, which resulted in the loss of $0.10 per share of revenue that otherwise would have been recognized in 2015, and $0.03 per share of non-cash write-offs incurred when Net rejected its leases with us, and |
• | Charges of $0.08 per share for severance expense and equity accelerations. |
• | Increased operating income excluding depreciation of $0.23 per share which includes the negative impact of $0.05 per share from the vacancy of ACC2, but excludes the negative impact from Net's bankruptcy filing, |
• | Bad debt expense of $0.05 in 2014 related to Net, partially offset by |
• | Revenue of $0.10 per share not recognized from Net, |
• | Write-off of $0.02 per share in 2015 of straight-line receivables and intangible assets related to leases with Net, and |
• | Increased interest expense of $0.09 per share due to a higher level of outstanding debt related to development financing. |
• | Increased Normalized FFO of $0.07 per share, |
• | Increased add-back of straight-line revenue as a result of rent received from Net not recognized as revenue and increased cash rents totaling $0.06 per share and other smaller miscellaneous items of $0.01 per share, |
• | Add-back of non-cash write-offs of Net's straight-line receivables and intangible assets of $0.02 per share, |
• | Lower amortization of below market value lease contracts of $0.01 per share resulting from the expiration of the Yahoo! lease at ACC2, partially offset by |
• | Increased capital expenditures at our operating data center facilities of $0.02 per share, and |
• | Lower stock compensation expense add-back of $0.01 per share. |
• | Signed 12 leases with a weighted average lease term of 6.4 years totaling 32.37 MW and 193,373 CRSF. |
• | Three of these leases were at ACC7 totaling 8.97 MW and 51,278 CRSF. All three leases commenced in the fourth quarter of 2015, and ACC7 Phases I and II are 100% leased and commenced. |
• | One lease was at CH2 Phase I for 6.00 MW and 35,838 CRSF. This lease commenced in the fourth quarter of 2015, and CH2 Phase I is 100% leased and commenced. |
• | One pre-lease was at CH2 Phase II for 1.42 MW and 8,795 CRSF. This lease is expected to commence upon the opening of CH2 Phase II in the second quarter of 2016. |
• | Two leases were at ACC5 totaling 1.45 MW and 5,213 CRSF. One lease is in space that was returned to the Company in July 2015, and this lease commenced in the fourth quarter of 2015. The other lease represents excess power left over from the releasing of the space described above that had been leased to Net, which will commence in the first quarter of 2016. |
• | One lease was for the entire 10.4 MW and 53,397 CRSF at ACC2, the space recently vacated by Yahoo!. The new lease at ACC2 commenced in January 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 our 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's east coast business, Anexio, at ACC4, ACC5, NJ1 and VA3, totaling 4.13 MW and 38,852 CRSF in the aggregate, as described above. These leases commenced in the fourth quarter of 2015. |
• | Extended the term of 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 19 leases with a weighted average lease term of 6.6 years totaling 46.83 MW and 269,973 CRSF that are expected to generate approximately $56.7 million of annualized GAAP base rent revenue which is equivalent to a GAAP rate of $101 per kW per month. |
• | Commenced 19 leases totaling 41.56 MW and 239,197 CRSF. |
• | Extended the terms 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 each of the extensions were 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 base rent rate related to these extensions was $110 per kW per month. |
• | Both the higher end and lower end of the range include $0.08 per share from current leases at NJ1. If NJ1 is sold in 2016, guidance will be adjusted for the loss of this income and for the application of the sales proceeds to lower borrowings under our line of credit. |
• | The low end of the range assumes no new leasing and the high end of the range assumes $0.19 per share from new leases. |
• | Opening CH2 Phase II in April 2016, ACC7 Phase III in June 2016 and CH2 Phase III in July 2016. |
• | Increased operating income excluding depreciation, and general and administrative expenses of $0.56 per share which includes $0.37 per share from leases already executed and $0.19 per share from new leases, partially offset by |
• | Increased interest expense of $0.21 per share due to higher levels of outstanding debt to fund our development plan and increases in interest rates, and |
• | Increased general and administrative expenses of $0.06 per share from investments in personnel to execute on our strategic plan. |
• | Increased operating income excluding depreciation and general and administrative expenses of $0.07 per share, half of which is from the commencement of the new ACC2 lease, partially offset by |
• | Increased general and administrative expenses of $0.01 per share from investments in personnel to execute our strategic plan. |
• | Increased Normalized FFO of $0.29 per share, |
• | Increased add-back of stock based compensation of $0.01 per share, |
• | Increased add-back of amortization of deferred financing costs of $0.01 per share, partially offset by |
• | Decreased add-back of straight-line revenues of $0.11 per share primarily due to higher straight-line revenue from the new ACC2 lease and $0.06 per share recovered from Net in 2015 which was applied to straight-line receivables, and |
• | Increased improvements to real estate of $0.03 per share due to projects at ACC2 and CH1. |
• | Increase in midpoint of Normalized FFO of $0.06 per share, partially offset by |
• | Reduction of straight-line revenues of $0.01 per share. |
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues: | |||||||||||||||
Base rent | $ | 77,539 | $ | 73,789 | $ | 298,585 | $ | 285,716 | |||||||
Recoveries from tenants | 36,527 | 31,989 | 139,537 | 124,853 | |||||||||||
Other revenues | 1,857 | 2,199 | 14,278 | 7,023 | |||||||||||
Total revenues | 115,923 | 107,977 | 452,400 | 417,592 | |||||||||||
Expenses: | |||||||||||||||
Property operating costs | 35,689 | 30,335 | 130,051 | 117,339 | |||||||||||
Real estate taxes and insurance | 4,948 | 3,209 | 21,335 | 14,195 | |||||||||||
Depreciation and amortization | 26,399 | 25,109 | 104,044 | 96,780 | |||||||||||
General and administrative | 4,831 | 4,512 | 18,064 | 17,181 | |||||||||||
Impairment on investment in real estate | 122,472 | — | 122,472 | — | |||||||||||
Other expenses | 1,107 | 5,233 | 16,859 | 9,222 | |||||||||||
Total expenses | 195,446 | 68,398 | 412,825 | 254,717 | |||||||||||
Operating (loss) income | (79,523 | ) | 39,579 | 39,575 | 162,875 | ||||||||||
Interest income | 9 | 3 | 60 | 116 | |||||||||||
Interest: | |||||||||||||||
Expense incurred | (11,528 | ) | (9,136 | ) | (40,570 | ) | (33,699 | ) | |||||||
Amortization of deferred financing costs | (911 | ) | (709 | ) | (3,151 | ) | (2,980 | ) | |||||||
Loss on early extinguishment of debt | — | — | — | (1,701 | ) | ||||||||||
Net (loss) income | (91,953 | ) | 29,737 | (4,086 | ) | 124,611 | |||||||||
Net loss (income) attributable to redeemable noncontrolling interests – operating partnership | 18,894 | (4,389 | ) | 5,993 | (18,704 | ) | |||||||||
Net (loss) income attributable to controlling interests | (73,059 | ) | 25,348 | 1,907 | 105,907 | ||||||||||
Preferred stock dividends | (6,812 | ) | (6,812 | ) | (27,245 | ) | (27,245 | ) | |||||||
Net (loss) income attributable to common shares | $ | (79,871 | ) | $ | 18,536 | $ | (25,338 | ) | $ | 78,662 | |||||
Earnings per share – basic: | |||||||||||||||
Net (loss) income attributable to common shares | $ | (1.23 | ) | $ | 0.28 | $ | (0.40 | ) | $ | 1.19 | |||||
Weighted average common shares outstanding | 65,164,060 | 65,599,091 | 65,184,013 | 65,486,108 | |||||||||||
Earnings per share – diluted: | |||||||||||||||
Net (loss) income attributable to common shares | $ | (1.23 | ) | $ | 0.28 | $ | (0.40 | ) | $ | 1.18 | |||||
Weighted average common shares outstanding | 65,164,060 | 66,581,720 | 65,184,013 | 66,086,379 | |||||||||||
Dividends declared per common share | $ | 0.47 | $ | 0.42 | $ | 1.73 | $ | 1.47 |
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net (loss) income | $ | (91,953 | ) | $ | 29,737 | $ | (4,086 | ) | $ | 124,611 | |||||
Depreciation and amortization | 26,399 | 25,109 | 104,044 | 96,780 | |||||||||||
Less: Non real estate depreciation and amortization | (197 | ) | (155 | ) | (700 | ) | (707 | ) | |||||||
Impairment on investment in real estate | 122,472 | — | 122,472 | — | |||||||||||
NAREIT FFO | 56,721 | 54,691 | 221,730 | 220,684 | |||||||||||
Preferred stock dividends | (6,812 | ) | (6,812 | ) | (27,245 | ) | (27,245 | ) | |||||||
NAREIT FFO attributable to common shares and common units | 49,909 | 47,879 | 194,485 | 193,439 | |||||||||||
Severance expense and equity acceleration | — | — | 6,124 | — | |||||||||||
Loss on early extinguishment of debt | — | — | — | 1,701 | |||||||||||
Normalized FFO attributable to common shares and common units | 49,909 | 47,879 | 200,609 | 195,140 | |||||||||||
Straight-line revenues, net of reserve | 14 | 3,377 | 13,424 | 7,673 | |||||||||||
Amortization and write-off of lease contracts above and below market value | (117 | ) | (598 | ) | (880 | ) | (2,393 | ) | |||||||
Compensation paid with Company common shares | 1,313 | 1,546 | 5,268 | 6,191 | |||||||||||
Non real estate depreciation and amortization | 197 | 155 | 700 | 707 | |||||||||||
Amortization of deferred financing costs | 911 | 709 | 3,151 | 2,980 | |||||||||||
Improvements to real estate | (1,026 | ) | 167 | (3,459 | ) | (1,916 | ) | ||||||||
Capitalized leasing commissions | (2,174 | ) | (2,250 | ) | (4,200 | ) | (4,149 | ) | |||||||
AFFO attributable to common shares and common units | $ | 49,027 | $ | 50,985 | $ | 214,613 | $ | 204,233 | |||||||
NAREIT FFO attributable to common shares and common units per share – diluted | $ | 0.61 | $ | 0.58 | $ | 2.39 | $ | 2.37 | |||||||
Normalized FFO attributable to common shares and common units per share – diluted | $ | 0.61 | $ | 0.58 | $ | 2.46 | $ | 2.39 | |||||||
AFFO attributable to common shares and common units per share – diluted | $ | 0.60 | $ | 0.62 | $ | 2.64 | $ | 2.50 | |||||||
Weighted average common shares and common units outstanding – diluted | 81,369,758 | 82,255,562 | 81,414,764 | 81,770,189 |
December 31, 2015 | December 31, 2014 | ||||||
ASSETS | |||||||
Income producing property: | |||||||
Land | $ | 94,203 | $ | 83,793 | |||
Buildings and improvements | 2,736,936 | 2,623,539 | |||||
2,831,139 | 2,707,332 | ||||||
Less: accumulated depreciation | (560,837 | ) | (504,869 | ) | |||
Net income producing property | 2,270,302 | 2,202,463 | |||||
Construction in progress and land held for development | 300,939 | 358,965 | |||||
Net real estate | 2,571,241 | 2,561,428 | |||||
Cash and cash equivalents | 31,230 | 29,598 | |||||
Rents and other receivables, net | 9,588 | 8,113 | |||||
Deferred rent, net | 128,941 | 142,365 | |||||
Lease contracts above market value, net | 6,029 | 8,054 | |||||
Deferred costs, net | 23,774 | 24,874 | |||||
Prepaid expenses and other assets | 44,689 | 48,295 | |||||
Total assets | $ | 2,815,492 | $ | 2,822,727 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Liabilities: | |||||||
Line of credit | $ | — | $ | 60,000 | |||
Mortgage notes payable, net of deferred financing costs | 114,075 | 113,667 | |||||
Unsecured term loan, net of deferred financing costs | 249,172 | 248,945 | |||||
Unsecured notes payable, net of discount and deferred financing costs | 834,963 | 588,767 | |||||
Accounts payable and accrued liabilities | 32,301 | 26,973 | |||||
Construction costs payable | 22,043 | 32,949 | |||||
Accrued interest payable | 11,821 | 10,759 | |||||
Dividend and distribution payable | 43,906 | 39,981 | |||||
Lease contracts below market value, net | 4,132 | 7,037 | |||||
Prepaid rents and other liabilities | 67,477 | 65,174 | |||||
Total liabilities | 1,379,890 | 1,194,252 | |||||
Redeemable noncontrolling interests – operating partnership | 479,189 | 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 December 31, 2015 and 2014 | 185,000 | 185,000 | |||||
Series B cumulative redeemable perpetual preferred stock, 6,650,000 issued and outstanding at December 31, 2015 and 2014 | 166,250 | 166,250 | |||||
Common stock, $.001 par value, 250,000,000 shares authorized, 66,105,650 shares issued and outstanding at December 31, 2015 and 66,061,804 shares issued and outstanding at December 31, 2014 | 66 | 66 | |||||
Additional paid in capital | 684,968 | 764,025 | |||||
Accumulated deficit | (79,871 | ) | — | ||||
Total stockholders’ equity | 956,413 | 1,115,341 | |||||
Total liabilities and stockholders’ equity | $ | 2,815,492 | $ | 2,822,727 |
Twelve months ended December 31, | |||||||
2015 | 2014 | ||||||
Cash flow from operating activities | |||||||
Net (loss) income | $ | (4,086 | ) | $ | 124,611 | ||
Adjustments to reconcile net (loss) income to net cash provided by operating activities | |||||||
Depreciation and amortization | 104,044 | 96,780 | |||||
Impairment on investment in real estate | 122,472 | — | |||||
Loss on early extinguishment of debt | — | 1,701 | |||||
Straight-line revenues, net of reserve | 13,424 | 7,673 | |||||
Amortization of deferred financing costs | 3,151 | 2,980 | |||||
Amortization and write-off of lease contracts above and below market value | (880 | ) | (2,393 | ) | |||
Compensation paid with Company common shares | 9,303 | 6,191 | |||||
Changes in operating assets and liabilities | |||||||
Rents and other receivables | (1,475 | ) | 4,561 | ||||
Deferred costs | (4,233 | ) | (2,552 | ) | |||
Prepaid expenses and other assets | 4,901 | (5,637 | ) | ||||
Accounts payable and accrued liabilities | 5,053 | 1,395 | |||||
Accrued interest payable | 1,062 | 776 | |||||
Prepaid rents and other liabilities | 2,285 | 8,427 | |||||
Net cash provided by operating activities | 255,021 | 244,513 | |||||
Cash flow from investing activities | |||||||
Investments in real estate – development | (217,339 | ) | (265,374 | ) | |||
Land acquisition costs | (8,600 | ) | — | ||||
Interest capitalized for real estate under development | (11,564 | ) | (9,644 | ) | |||
Improvements to real estate | (3,459 | ) | (1,916 | ) | |||
Additions to non-real estate property | (753 | ) | (316 | ) | |||
Net cash used in investing activities | (241,715 | ) | (277,250 | ) | |||
Cash flow from financing activities | |||||||
Line of credit: | |||||||
Proceeds | 120,000 | 60,000 | |||||
Repayments | (180,000 | ) | — | ||||
Unsecured term loan: | |||||||
Proceeds | — | 96,000 | |||||
Unsecured notes payable: | |||||||
Proceeds | 248,012 | — | |||||
Payments of financing costs | (4,740 | ) | (3,829 | ) | |||
Equity compensation proceeds | 249 | 4,363 | |||||
Common stock repurchases | (31,912 | ) | — | ||||
Dividends and distributions: | |||||||
Common shares | (110,126 | ) | (85,422 | ) | |||
Preferred shares | (27,245 | ) | (27,245 | ) | |||
Redeemable noncontrolling interests – operating partnership | (25,912 | ) | (20,265 | ) | |||
Net cash (used in) provided by financing activities | (11,674 | ) | 23,602 | ||||
Net increase (decrease) in cash and cash equivalents | 1,632 | (9,135 | ) | ||||
Cash and cash equivalents, beginning | 29,598 | 38,733 | |||||
Cash and cash equivalents, ending | $ | 31,230 | $ | 29,598 | |||
Supplemental information: | |||||||
Cash paid for interest | $ | 51,073 | $ | 42,567 | |||
Deferred financing costs capitalized for real estate under development | $ | 737 | $ | 601 | |||
Construction costs payable capitalized for real estate under development | $ | 22,043 | $ | 32,949 | |||
Redemption of operating partnership units | $ | 9,544 | $ | 6,100 | |||
Adjustments to redeemable noncontrolling interests - operating partnership | $ | 8,105 | $ | 136,117 |
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 | 97 | % | 97 | % | ||||||||||||
ACC5 | Ashburn, VA | 2009-2010 | 360,000 | 176,000 | 99 | % | 99 | % | 36.4 | 100 | % | 99 | % | ||||||||||||
ACC6 | Ashburn, VA | 2011-2013 | 262,000 | 130,000 | 100 | % | 100 | % | 26.0 | 100 | % | 100 | % | ||||||||||||
ACC7 Phases I/II | Ashburn, VA | 2014-2015 | 224,000 | 118,000 | 100 | % | 100 | % | 21.9 | 100 | % | 100 | % | ||||||||||||
CH1 | Elk Grove Village, IL | 2008-2012 | 485,000 | 231,000 | 100 | % | 100 | % | 36.4 | 100 | % | 100 | % | ||||||||||||
CH2 Phase I | Elk Grove Village, IL | 2015 | 94,000 | 45,000 | 100 | % | 100 | % | 7.4 | 100 | % | 100 | % | ||||||||||||
NJ1 Phase I | Piscataway, NJ | 2010 | 180,000 | 88,000 | 70 | % | 70 | % | 18.2 | 52 | % | 52 | % | ||||||||||||
SC1 | Santa Clara, CA | 2011-2015 | 360,000 | 173,000 | 100 | % | 100 | % | 36.6 | 100 | % | 100 | % | ||||||||||||
VA3 | 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 | % | ||||||||||||
Total Operating Properties | 3,032,000 | 1,503,000 | 98 | % | 98 | % | 266.2 | 96 | % | 96 | % |
(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 January 1, 2016 represent $335 million of base rent on a GAAP basis and $341 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). |
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) | ||||||||||||
2016 | 2 | 9 | 0.6 | % | 1,679 | 0.7 | % | 0.9 | % | |||||||||
2017 | 12 | 76 | 5.2 | % | 12,419 | 4.9 | % | 4.9 | % | |||||||||
2018 | 21 | 180 | 12.3 | % | 34,017 | 13.3 | % | 13.5 | % | |||||||||
2019 | 20 | 291 | 19.8 | % | 51,740 | 20.2 | % | 21.0 | % | |||||||||
2020 | 15 | 182 | 12.4 | % | 32,404 | 12.7 | % | 12.7 | % | |||||||||
2021 | 16 | 280 | 19.1 | % | 48,194 | 18.9 | % | 17.6 | % | |||||||||
2022 | 8 | 106 | 7.2 | % | 18,509 | 7.2 | % | 7.1 | % | |||||||||
2023 | 9 | 103 | 7.0 | % | 14,455 | 5.7 | % | 4.9 | % | |||||||||
2024 | 8 | 112 | 7.6 | % | 19,279 | 7.5 | % | 9.0 | % | |||||||||
2025 | 3 | 47 | 3.2 | % | 7,172 | 2.8 | % | 3.4 | % | |||||||||
After 2025 | 6 | 80 | 5.6 | % | 15,684 | 6.1 | % | 5.0 | % | |||||||||
Total | 120 | 1,466 | 100 | % | 255,552 | 100 | % | 100 | % |
(1) | Represents 37 customers with 120 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 January 1, 2016. |
Customer | Number of Buildings | Number of Markets | Remaining Term | % of Annualized Base Rent (1) | |||||||||
1 | Microsoft | 7 | 3 | 5.6 | 22.9 | % | |||||||
2 | Facebook | 4 | 1 | 4.9 | 21.3 | % | |||||||
3 | Rackspace | 3 | 2 | 9.6 | 9.5 | % | |||||||
4 | Fortune 25 Investment Grade Rated Company | 3 | 3 | 4.6 | 9.5 | % | |||||||
5 | Yahoo! (2) | 2 | 2 | 2.2 | 6.9 | % | |||||||
6 | Fortune 1000 leading Software as a Service (SaaS) Provider, Not Rated | 4 | 2 | 6.6 | 5.9 | % | |||||||
7 | Server Central | 1 | 1 | 5.6 | 2.6 | % | |||||||
8 | Dropbox | 1 | 1 | 3.0 | 1.7 | % | |||||||
9 | IAC | 1 | 1 | 3.3 | 1.6 | % | |||||||
10 | Anexio | 4 | 2 | 8.0 | 1.4 | % | |||||||
11 | Symantec | 2 | 1 | 1.5 | 1.4 | % | |||||||
12 | Fortune 25 Investment Grade Rated Company | 2 | 2 | 5.2 | 1.2 | % | |||||||
13 | Zynga (3) | 1 | 1 | 0.3 | 1.2 | % | |||||||
14 | UBS | 1 | 1 | 9.5 | 1.1 | % | |||||||
15 | Sanofi Aventis | 2 | 1 | 5.5 | 0.9 | % | |||||||
Total | 89.1 | % |
(1) | Annualized base rent represents monthly contractual base rent (defined as cash base rent before abatements) multiplied by 12 for commenced leases as of January 1, 2016. |
(2) | Comprised of a lease at ACC4 which is 6.3% 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 leases at ACC5 that have been fully subleased to another DFT customer. |
Same Store Properties | Three Months Ended | Year Ended | ||||||||||||||||||||||||||||
31-Dec-15 | 31-Dec-14 | % Change | 30-Sep-15 | % Change | 31-Dec-15 | 31-Dec-14 | % Change | |||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||
Base rent | $ | 70,895 | $ | 72,742 | (2.5 | )% | $ | 73,398 | (3.4 | )% | $ | 285,447 | $ | 284,430 | 0.4 | % | ||||||||||||||
Recoveries from tenants | 35,364 | 31,886 | 10.9 | % | 34,595 | 2.2 | % | 137,337 | 124,750 | 10.1 | % | |||||||||||||||||||
Other revenues | 528 | 473 | 11.6 | % | 494 | 6.9 | % | 1,983 | 1,849 | 7.2 | % | |||||||||||||||||||
Total revenues | 106,787 | 105,101 | 1.6 | % | 108,487 | (1.6 | )% | 424,767 | 411,029 | 3.3 | % | |||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||
Property operating costs | 33,334 | 29,372 | 13.5 | % | 31,232 | 6.7 | % | 123,627 | 115,862 | 6.7 | % | |||||||||||||||||||
Real estate taxes and insurance | 4,646 | 2,863 | 62.3 | % | 5,111 | (9.1 | )% | 20,456 | 13,723 | 49.1 | % | |||||||||||||||||||
Other expenses | 137 | 1,513 | N/M | 10 | N/M | 191 | 1,608 | (88.1 | )% | |||||||||||||||||||||
Total expenses | 38,117 | 33,748 | 12.9 | % | 36,353 | 4.9 | % | 144,274 | 131,193 | 10.0 | % | |||||||||||||||||||
Net operating income (1) | 68,670 | 71,353 | (3.8 | )% | 72,134 | (4.8 | )% | 280,493 | 279,836 | 0.2 | % | |||||||||||||||||||
Straight-line revenues, net of reserve | 3,612 | 2,594 | 39.2 | % | 4,394 | (17.8 | )% | 15,837 | 7,127 | N/M | ||||||||||||||||||||
Amortization of lease contracts above and below market value | (116 | ) | (598 | ) | (80.6 | )% | (585 | ) | N/A | (879 | ) | (2,393 | ) | (63.3 | )% | |||||||||||||||
Cash net operating income (1) | $ | 72,166 | $ | 73,349 | (1.6 | )% | $ | 75,943 | (5.0 | )% | $ | 295,451 | $ | 284,570 | 3.8 | % | ||||||||||||||
Note: Same Store Properties represent those properties placed into service on or before January 1, 2014 and excludes ACC7 and CH2. | ||||||||||||||||||||||||||||||
Same Store, Same Capital Properties | Three Months Ended | Year Ended | ||||||||||||||||||||||||||||
31-Dec-15 | 31-Dec-14 | % Change | 30-Sep-15 | % Change | 31-Dec-15 | 31-Dec-14 | % Change | |||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||
Base rent | $ | 60,542 | $ | 65,087 | (7.0 | )% | $ | 62,998 | (3.9 | )% | $ | 247,309 | $ | 258,432 | (4.3 | )% | ||||||||||||||
Recoveries from tenants | 27,163 | 26,706 | 1.7 | % | 26,266 | 3.4 | % | 107,428 | 107,049 | 0.4 | % | |||||||||||||||||||
Other revenues | 487 | 443 | 9.9 | % | 464 | 5.0 | % | 1,853 | 1,732 | 7.0 | % | |||||||||||||||||||
Total revenues | 88,192 | 92,236 | (4.4 | )% | 89,728 | (1.7 | )% | 356,590 | 367,213 | (2.9 | )% | |||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||
Property operating costs | 26,124 | 24,872 | 5.0 | % | 24,681 | 5.8 | % | 99,692 | 100,033 | (0.3 | )% | |||||||||||||||||||
Real estate taxes and insurance | 3,126 | 1,918 | 63.0 | % | 3,219 | (2.9 | )% | 12,589 | 10,626 | 18.5 | % | |||||||||||||||||||
Other expenses | 137 | 1,510 | N/M | 9 | N/M | 173 | 1,587 | (89.1 | )% | |||||||||||||||||||||
Total expenses | 29,387 | 28,300 | 3.8 | % | 27,909 | 5.3 | % | 112,454 | 112,246 | 0.2 | % | |||||||||||||||||||
Net operating income (1) | 58,805 | 63,936 | (8.0 | )% | 61,819 | (4.9 | )% | 244,136 | 254,967 | (4.2 | )% | |||||||||||||||||||
Straight-line revenues, net of reserve | 3,883 | 3,270 | 18.7 | % | 4,329 | (10.3 | )% | 16,606 | 8,476 | N/M | ||||||||||||||||||||
Amortization of lease contracts above and below market value | (116 | ) | (598 | ) | (80.6 | )% | (585 | ) | N/A | (879 | ) | (2,393 | ) | (63.3 | )% | |||||||||||||||
Cash net operating income (1) | $ | 62,572 | $ | 66,608 | (6.1 | )% | $ | 65,563 | (4.6 | )% | $ | 259,863 | $ | 261,050 | (0.5 | )% | ||||||||||||||
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, ACC7 and CH2. (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 | Year Ended | ||||||||||||||||||||
31-Dec-15 | 31-Dec-14 | 30-Sep-15 | 31-Dec-15 | 31-Dec-14 | |||||||||||||||||
Operating (loss) income | $ | (79,523 | ) | $ | 39,579 | $ | 42,978 | $ | 39,575 | $ | 162,875 | ||||||||||
Add-back: non-same store operating loss | 4,512 | 7,707 | 4,464 | 23,482 | 22,396 | ||||||||||||||||
Same Store: | |||||||||||||||||||||
Operating (loss) income | (75,011 | ) | 47,286 | 47,442 | 63,057 | 185,271 | |||||||||||||||
Depreciation and amortization | 24,414 | 24,067 | 24,692 | 98,169 | 94,565 | ||||||||||||||||
Impairment on investment in real estate | 119,267 | — | — | 119,267 | — | ||||||||||||||||
Net operating income | 68,670 | 71,353 | 72,134 | 280,493 | 279,836 | ||||||||||||||||
Straight-line revenues, net of reserve | 3,612 | 2,594 | 4,394 | 15,837 | 7,127 | ||||||||||||||||
Amortization of lease contracts above and below market value | (116 | ) | (598 | ) | (585 | ) | (879 | ) | (2,393 | ) | |||||||||||
Cash net operating income | $ | 72,166 | $ | 73,349 | $ | 75,943 | $ | 295,451 | $ | 284,570 | |||||||||||
Reconciliation of Operating Income to Same Store, Same Capital Net Operating Income and Cash Net Operating Income | |||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||
31-Dec-15 | 31-Dec-14 | 30-Sep-15 | 31-Dec-15 | 31-Dec-14 | |||||||||||||||||
Operating (loss) income | $ | (79,523 | ) | $ | 39,579 | $ | 42,978 | $ | 39,575 | $ | 162,875 | ||||||||||
Add-back: non-same store operating (income) loss | (1,564 | ) | 3,118 | (2,110 | ) | 885 | 7,200 | ||||||||||||||
Same Store: | |||||||||||||||||||||
Operating (loss) income | (81,087 | ) | 42,697 | 40,868 | 40,460 | 170,075 | |||||||||||||||
Depreciation and amortization | 20,625 | 21,239 | 20,951 | 84,409 | 84,892 | ||||||||||||||||
Impairment on investment in real estate | 119,267 | — | — | 119,267 | — | ||||||||||||||||
Net operating income | 58,805 | 63,936 | 61,819 | 244,136 | 254,967 | ||||||||||||||||
Straight-line revenues, net of reserve | 3,883 | 3,270 | 4,329 | 16,606 | 8,476 | ||||||||||||||||
Amortization of lease contracts above and below market value | (116 | ) | (598 | ) | (585 | ) | (879 | ) | (2,393 | ) | |||||||||||
Cash net operating income | $ | 62,572 | $ | 66,608 | $ | 65,563 | $ | 259,863 | $ | 261,050 |
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 III | Ashburn, VA | 126,000 | 68,000 | 11.9 | $100,000 - $104,000 | $ | 84,622 | — | % | — | % | ||||||||||||
CH2 Phase II | Elk Grove Village, IL | 74,000 | 35,000 | 5.7 | 60,000 - 64,000 | 53,880 | 25 | % | 25 | % | |||||||||||||
CH2 Phase III | Elk Grove Village, IL | 168,000 | 80,000 | 12.5 | 140,000 - 144,000 | 88,336 | — | % | — | % | |||||||||||||
368,000 | 183,000 | 30.1 | 300,000 - 312,000 | 226,838 | |||||||||||||||||||
Future Development Projects/Phases | |||||||||||||||||||||||
ACC7 Phase IV | Ashburn, VA | 96,000 | 52,000 | 7.9 | 35,993 | 35,993 | |||||||||||||||||
NJ1 Phase II (6) | Piscataway, NJ | 180,000 | 88,000 | 18.2 | 18,273 | 18,273 | |||||||||||||||||
276,000 | 140,000 | 26.1 | 54,266 | 54,266 | |||||||||||||||||||
Land Held for Development | |||||||||||||||||||||||
ACC8 | Ashburn, VA | 100,000 | 50,000 | 10.4 | 4,243 | ||||||||||||||||||
CH3 (7) | Elk Grove Village, IL | 214,000 | 119,000 | 22.0 | 8,320 | ||||||||||||||||||
SC2 (8) | Santa Clara, CA | 150,000 | 69,000 | 16.0 | 7,272 | ||||||||||||||||||
464,000 | 238,000 | 48.4 | 19,835 | ||||||||||||||||||||
Total | 1,108,000 | 561,000 | 104.6 | $ | 300,939 |
(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 December 31, 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) | NJ1 is being marketed for sale. Accordingly, we do not believe that we will develop the second phase of this data center prior to the sale. |
(7) | Amounts listed for gross building area, CRSF and critical load are current estimates. |
(8) | 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. |
December 31, 2015 | ||||||||||||
Amounts (1) | % of Total | Rates | Maturities (years) | |||||||||
Secured | $ | 115,000 | 9 | % | 2.0 | % | 2.2 | |||||
Unsecured | 1,100,000 | 91 | % | 4.9 | % | 5.6 | ||||||
Total | $ | 1,215,000 | 100 | % | 4.6 | % | 5.3 | |||||
Fixed Rate Debt: | ||||||||||||
Unsecured Notes due 2021 | $ | 600,000 | 49 | % | 5.9 | % | 5.7 | |||||
Unsecured Notes due 2023 (2) | 250,000 | 21 | % | 5.6 | % | 7.5 | ||||||
Fixed Rate Debt | 850,000 | 70 | % | 5.8 | % | 6.2 | ||||||
Floating Rate Debt: | ||||||||||||
Unsecured Credit Facility | — | — | % | — | % | 2.4 | ||||||
Unsecured Term Loan | 250,000 | 21 | % | 1.7 | % | 3.6 | ||||||
ACC3 Term Loan | 115,000 | 9 | % | 2.0 | % | 2.2 | ||||||
Floating Rate Debt | 365,000 | 30 | % | 1.8 | % | 3.1 | ||||||
Total | $ | 1,215,000 | 100 | % | 4.6 | % | 5.3 |
Note: | We capitalized interest and deferred financing cost amortization of $3.2 million and $12.3 million during the three months and year ended December 31, 2015, respectively. |
(1) | Principal amounts exclude deferred financing costs. |
(2) | Principal amount excludes original issue discount of $1.9 million as of December 31, 2015. |
Year | Fixed Rate (1) | Floating Rate (1) | Total (1) | % of Total | Rates | |||||||||||||||
2016 | $ | — | $ | 3,750 | (4) | $ | 3,750 | 0.3 | % | 2.0 | % | |||||||||
2017 | — | 8,750 | (4) | 8,750 | 0.7 | % | 2.0 | % | ||||||||||||
2018 | — | 102,500 | (4) | 102,500 | 8.4 | % | 2.0 | % | ||||||||||||
2019 | — | 250,000 | (5) | 250,000 | 20.6 | % | 1.7 | % | ||||||||||||
2020 | — | — | — | — | — | |||||||||||||||
2021 | 600,000 | (2) | — | 600,000 | 49.4 | % | 5.9 | % | ||||||||||||
2022 | — | — | — | — | — | |||||||||||||||
2023 | 250,000 | (3) | — | 250,000 | 20.6 | % | 5.6 | % | ||||||||||||
Total | $ | 850,000 | $ | 365,000 | $ | 1,215,000 | 100 | % | 4.6 | % |
(1) | Principal amounts exclude deferred financing costs. |
(2) | The 5.875% Unsecured Notes due 2021 mature on September 15, 2021. |
(3) | The 5.625% Unsecured Notes due 2023 mature on June 15, 2023. Principal amount excludes original issue discount of $1.9 million as of December 31, 2015. |
(4) | 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. |
(5) | The Unsecured Term Loan matures on July 21, 2019 with no extension option. |
12/31/15 | 12/31/14 | ||
Interest Coverage Ratio (not less than 2.0) | 4.8 | 6.1 | |
Total Debt to Gross Asset Value (not to exceed 60%) | 35.9% | 30.8% | |
Secured Debt to Total Assets (not to exceed 40%) | 3.4% | 3.5% | |
Total Unsecured Assets to Unsecured Debt (not less than 150%) | 245% | 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 | 29.3 | % | ||||||||||||||
Common Shares | 81 | % | 66,106 | ||||||||||||||
Operating Partnership (“OP”) Units | 19 | % | 15,073 | ||||||||||||||
Total Shares and Units | 100 | % | 81,179 | ||||||||||||||
Common Share Price at December 31, 2015 | $ | 31.79 | |||||||||||||||
Common Share and OP Unit Capitalization | $ | 2,580,680 | |||||||||||||||
Preferred Stock ($25 per share liquidation preference) | 351,250 | ||||||||||||||||
Total Equity | 2,931,930 | 70.7 | % | ||||||||||||||
Total Market Capitalization | $ | 4,146,930 | 100.0 | % |
Q4 2015 | Q4 2014 | 2015 | 2014 | ||||||||
Weighted Average Amounts Outstanding for EPS Purposes: | |||||||||||
Common Shares - basic | 65,164,060 | 65,599,091 | 65,184,013 | 65,486,108 | |||||||
Effect of dilutive securities | — | 982,629 | — | 600,271 | |||||||
Common Shares - diluted | 65,164,060 | 66,581,720 | 65,184,013 | 66,086,379 | |||||||
Weighted Average Amounts Outstanding for FFO, Normalized FFO and AFFO Purposes: | |||||||||||
Common Shares - basic | 65,164,060 | 65,599,091 | 65,184,013 | 65,486,108 | |||||||
OP Units - basic | 15,402,191 | 15,519,128 | 15,415,186 | 15,567,019 | |||||||
Total Common Shares and OP Units | 80,566,251 | 81,118,219 | 80,599,199 | 81,053,127 | |||||||
Effect of dilutive securities | 803,507 | 1,137,343 | 815,565 | 717,062 | |||||||
Common Shares and Units - diluted | 81,369,758 | 82,255,562 | 81,414,764 | 81,770,189 | |||||||
Period Ending Amounts Outstanding: | |||||||||||
Common Shares | 66,105,650 | ||||||||||
OP Units | 15,073,563 | ||||||||||
Total Common Shares and Units | 81,179,213 |
Expected Q1 2016 per share | Expected 2016 per share | ||
Net income per common share and common unit - diluted | $0.34 to $0.36 | $1.30 to $1.50 | |
Depreciation and amortization, net | 0.32 | 1.35 | |
NAREIT FFO per common share and common unit - diluted (1) | $0.66 to $0.68 | $2.65 to $2.85 | |
Normalized FFO per common share and common unit - diluted (1) | $0.66 to $0.68 | $2.65 to $2.85 | |
Straight-line revenues, net of reserve | (0.02) | 0.05 | |
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 | 0.05 | |
Improvements to real estate | (0.02) | (0.08) | |
Capitalized leasing commissions | (0.01) | (0.04) | |
AFFO per common share and common unit - diluted (1) | $0.64 to $0.66 | $2.70 to $2.90 |
2016 Debt Assumptions | ||
Weighted average debt outstanding | $1,385.0 million | |
Weighted average interest rate (one month LIBOR avg. 0.83%) | 4.87% | |
Total interest costs | $67.4 million | |
Amortization of deferred financing costs | 4.9 million | |
Interest expense capitalized | (10.4) million | |
Deferred financing costs amortization capitalized | (0.8) million | |
Total interest expense after capitalization | $61.1 million | |
2016 Other Guidance Assumptions | ||
Total revenues | $500 to $520 million | |
Base rent (included in total revenues) | $340 to $355 million | |
General and administrative expense | $22 to $23 million | |
Investments in real estate - development (2) | $280 to $320 million | |
Improvements to real estate excluding development | $6 to $7 million | |
Preferred stock dividends | $27 million | |
Annualized common stock dividend | $1.88 per share | |
Weighted average common shares and OP units - diluted | 81.5 million | |
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” in this earnings release. |
(2) | Represents cash spend expected in 2016 for CH2 Phase II, CH2 Phase III and ACC7 Phase III which are currently in development and SC1 Phase III, ACC7 Phase IV, TOR1 Phase I (Toronto), ACC9 Phase I and CH3 Phase I which are currently not in development and require Board approval . |