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 27, 2016 |
DUPONT FABROS TECHNOLOGY, INC. | |
October 27, 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 October 27, 2016 |
Third Quarter 2016 |
Earnings Release and Supplemental Information |
DuPont Fabros Technology, Inc. 401 9th Street, NW, Suite 600 Washington, D.C. 20004 (202) 728-0044 www.dft.com NYSE: DFT | Investor Relations Contacts: | ||
Jeffrey H. Foster Chief Financial Officer jfoster@dft.com (202) 478-2333 | Steven Rubis Vice President, Investor Relations srubis@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 | ||
Leasing Statistics | 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 OP Unit Weighted Average Amounts Outstanding | 20 | ||
2016 Guidance | 21 |
• | As of October 27, 2016, our operating portfolio was 97% leased and commenced as measured by critical load (in megawatts, or "MW") and computer room square feet ("CRSF"). |
• | Quarterly Highlights: |
• | Double digit growth rates versus prior year quarter: |
◦ | Revenue - 16% |
◦ | Earnings per share - 28% |
◦ | Normalized Funds from Operations ("FFO") per share - 18% |
◦ | Adjusted FFO ("AFFO") per share - 10% |
• | Placed CH2 Phase III, totaling 11.3 MW and 71,000 CRSF, into service on July 1st 89% leased based on critical load. CH2 Phase III is now 100% leased. |
• | Acquired 46.7 acres of land in Hillsboro, Oregon for $11.2 million. This land will be used for the OR1 and OR2 data centers, which have estimated capacity totaling 96.0 MW of critical load. |
• | Acquired a shell building and associated land in the Greater Toronto Area for $41.6 million USD. This shell will be developed into the TOR1 data center, which has an estimated capacity of 46.0 MW of critical load. |
• | Executed two new leases totaling 2.42 MW and 16,319 CRSF of space with a weighted average lease term of 12.2 years. One of these leases, which totals 1.22 MW and 8,944 CRSF, was disclosed in our second quarter 2016 earnings release. |
• | Extended the term of two leases, totaling 3.41 MW and 16,400 CRSF, by 2.0 years. Both extensions were disclosed in our second quarter 2016 earnings release. |
• | Redeemed the remaining shares outstanding of our Series B preferred stock. |
• | Refinanced our $250 million unsecured term loan, extending the maturity to 2022, and increased our line of credit to $750 million while extending its maturity to 2020. |
• | Subsequent to the Third Quarter 2016: |
• | Placed ACC7 Phase IV, totaling 8.2 MW and 52,000 CRSF, into service, 49% leased based on critical load. |
• | Write-off of issuance costs associated with the redemption of preferred shares of $3.7 million, or $0.04 per share, and |
• | Loss on early extinguishment of debt associated with the debt refinancing of $1.2 million, or $0.01 per share. |
• | Increased operating income excluding depreciation of $0.16 per share primarily due to new leases commencing and |
• | Lower preferred stock dividends of $0.04 per share due to the lower amount of preferred shares outstanding and lower dividend rate, partially offset by |
• | Increased interest expense of $0.01 per share primarily due to increased LIBOR rates and |
• | Dilution of $0.08 per share from the issuance of common equity in the first quarter of 2016. |
• | Increased Normalized FFO of $0.11 per share and |
• | Lower amortization of lease contracts above and below market value of $0.01 per share, partially offset by |
• | A decrease in the add-back of straight-line revenues of $0.05 per share primarily resulting from 2015 collections from Net Data Centers that were not applied to revenue and higher straight-line revenues at ACC2 in 2015 versus 2016. |
• | A 2016 gain on sale of our NJ1 data center of $0.26 per share, |
• | A 2015 charge of $0.07 per share for the severance expense and equity accelerations associated with the departure of our former CEO, partially offset by |
• | A 2016 write-off of issuance costs associated with the redemption of preferred shares of $0.15 per share, |
• | A 2016 loss on early extinguishment of debt of $0.01 per share and |
• | Severance costs and equity accelerations in 2016 for the NJ1 employees of $0.01 per share. |
• | Increased operating income excluding depreciation of $0.38 per share primarily due to new leases commencing and |
• | Lower preferred stock dividends of $0.04 per share due to the lower amount of preferred shares outstanding and lower dividend rate, partially offset by |
• | Increased interest expense of $0.08 per share primarily due to a higher level of outstanding debt related to development financing and |
• | Dilution of $0.15 per share from the issuance of common equity in the first quarter of 2016. |
• | Increased Normalized FFO of $0.19 per share and |
• | Increased add-back of compensation paid with Company common shares of $0.01 per share offset by, |
• | A decrease in the add-back of straight-line revenues of $0.16 per share primarily resulting from 2015 collections from Net Data Centers that were not applied to revenue and higher straight-line revenues at ACC2 in 2015 versus 2016, |
• | Increased capitalized leasing commissions of $0.02 per share due to higher levels of leasing and payments to brokers and |
• | Increased capital expenditures at our operating data center facilities of $0.02 per share primarily related to ACC2 enhancements. |
• | Executed two new leases totaling 2.42 MW and 16,319 CRSF: |
• | One lease was at CH2 Phase III totaling 1.22 MW and 8,944 CRSF. This lease commenced in the third quarter and resulted in CH2 Phase III being 100% leased. |
• | One pre-lease was at CH2 Phase IV totaling 1.20 MW and 7,375 CRSF. This pre-lease is expected to commence upon the opening of CH2 Phase IV in the fourth quarter of 2016. CH2 Phase IV is now 100% pre-leased based on both critical load and CRSF. |
• | Extended the terms of two leases totaling 3.41 MW and 16,400 CRSF: |
▪ | One extension was at ACC5 for 2.28 MW and 11,000 CRSF which was scheduled to expire in 2017. The lease term was extended by 2.0 years commencing July 1, 2017, and compared to the cash rental rate in effect when the extension was executed, cash base rent will increase 3.0% upon the expiration of the original lease term. GAAP base rent increased 1.2% immediately. |
▪ | One extension was at ACC4 for 1.13 MW and 5,400 CRSF which was scheduled to expire in 2017. The lease term was extended by 2.0 years commencing July 1, 2017, and compared to the cash rental rate in effect when the extension was executed, cash base rent will increase 3.0% upon the expiration of the original lease term. GAAP base rent increased 1.5% immediately. |
• | Executed 13 leases with a weighted average lease term of 12.7 years, totaling 48.05 MW and 249,662 CRSF, which are expected to generate approximately $60.2 million of annualized GAAP base rent revenue, which is equivalent to a GAAP rate of $105 per kW per month. These leases are expected to generate approximately $76.1 million of annualized revenue, which includes estimated amounts of operating expense recoveries for the leases structured as triple net leases, net of recovery of metered power, which results in a rate of $132 per kW per month. |
• | Commenced 15 leases totaling 45.22 MW and 251,479 CRSF. |
• | Extended the term of seven leases totaling 6.68 MW and 40,443 CRSF by a weighted average of 2.4 years. Compared to the rates in effect when each of the extensions was executed, cash base rents will be an average of 3.0% higher upon the expiration of the original lease terms. GAAP base rents will be an average of 3.4% higher immediately. The average GAAP base rent rate related to these extensions was $123 per kW per month and including operating expense recoveries, this results in $149 per kW per month. |
Data Center Phase | Capacity (MW) | Anticipated Placed in Service Date | Percentage Pre-Leased CRSF / Critical Load | ||||
CH2 Phase IV | 1.2 | Q4 2016 | 100% / 100% | ||||
ACC9 Phase I | 14.4 | Q2 2017 | — | ||||
ACC9 Phase II | 14.4 | Q3 2017 | — | ||||
SC1 Phase III | 16.0 | Q3 2017 | 100% / 100% | ||||
46.0 |
• | Decreased interest expense of $0.01 per share due to higher capitalized interest and |
• | Decreased preferred stock dividends of $0.01 per share due to completion of the redemption of the Series B shares in July 2016. |
• | Increased Normalized FFO of $0.02 per share and |
• | Increased add-back of straight-line revenues of $0.01 per share, partially offset by |
• | Increased capitalized leasing commissions of $0.01 per share due to a forecasted increase in fourth quarter leasing and |
• | Increased capital expenditures for operating properties of $0.01 per share. |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues: | |||||||||||||||
Base rent | $ | 88,614 | $ | 76,771 | $ | 254,509 | $ | 221,046 | |||||||
Recoveries from tenants | 44,375 | 35,223 | 124,764 | 103,010 | |||||||||||
Other revenues | 1,337 | 3,343 | 7,740 | 12,421 | |||||||||||
Total revenues | 134,326 | 115,337 | 387,013 | 336,477 | |||||||||||
Expenses: | |||||||||||||||
Property operating costs | 39,214 | 33,209 | 113,102 | 94,362 | |||||||||||
Real estate taxes and insurance | 4,955 | 5,348 | 16,111 | 16,387 | |||||||||||
Depreciation and amortization | 27,493 | 26,433 | 79,659 | 77,645 | |||||||||||
General and administrative | 5,484 | 4,422 | 16,333 | 13,233 | |||||||||||
Other expenses | 800 | 2,947 | 6,342 | 15,752 | |||||||||||
Total expenses | 77,946 | 72,359 | 231,547 | 217,379 | |||||||||||
Operating income | 56,380 | 42,978 | 155,466 | 119,098 | |||||||||||
Interest: | |||||||||||||||
Expense incurred | (12,935 | ) | (11,681 | ) | (36,067 | ) | (28,991 | ) | |||||||
Amortization of deferred financing costs | (1,016 | ) | (904 | ) | (2,780 | ) | (2,240 | ) | |||||||
Gain on sale of real estate | (231 | ) | — | 22,833 | — | ||||||||||
Loss on early extinguishment of debt | (1,232 | ) | — | (1,232 | ) | — | |||||||||
Net income | 40,966 | 30,393 | 138,220 | 87,867 | |||||||||||
Net income attributable to redeemable noncontrolling interests – operating partnership | (5,144 | ) | (4,520 | ) | (18,089 | ) | (12,901 | ) | |||||||
Net income attributable to controlling interests | 35,822 | 25,873 | 120,131 | 74,966 | |||||||||||
Preferred stock dividends | (3,630 | ) | (6,811 | ) | (17,405 | ) | (20,433 | ) | |||||||
Issuance costs associated with redeemed preferred stock | (3,668 | ) | — | (12,495 | ) | — | |||||||||
Net income attributable to common shares | $ | 28,524 | $ | 19,062 | $ | 90,231 | $ | 54,533 | |||||||
Earnings per share – basic: | |||||||||||||||
Net income attributable to common shares | $ | 0.38 | $ | 0.29 | $ | 1.24 | $ | 0.83 | |||||||
Weighted average common shares outstanding | 75,232,413 | 65,041,159 | 72,212,874 | 65,190,737 | |||||||||||
Earnings per share – diluted: | |||||||||||||||
Net income attributable to common shares | $ | 0.37 | $ | 0.29 | $ | 1.23 | $ | 0.82 | |||||||
Weighted average common shares outstanding | 76,095,994 | 65,561,891 | 73,072,127 | 65,918,976 | |||||||||||
Dividends declared per common share | $ | 0.47 | $ | 0.42 | $ | 1.41 | $ | 1.26 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income | $ | 40,966 | $ | 30,393 | $ | 138,220 | $ | 87,867 | |||||||
Depreciation and amortization | 27,493 | 26,433 | 79,659 | 77,645 | |||||||||||
Less: Non real estate depreciation and amortization | (221 | ) | (202 | ) | (615 | ) | (503 | ) | |||||||
Gain on sale of real estate | 231 | — | (22,833 | ) | — | ||||||||||
NAREIT FFO | 68,469 | 56,624 | 194,431 | 165,009 | |||||||||||
Preferred stock dividends | (3,630 | ) | (6,811 | ) | (17,405 | ) | (20,433 | ) | |||||||
Issuance costs associated with redeemed preferred shares | (3,668 | ) | — | (12,495 | ) | — | |||||||||
NAREIT FFO attributable to common shares and common units | 61,171 | 49,813 | 164,531 | 144,576 | |||||||||||
Severance expense and equity acceleration | — | 546 | 891 | 6,124 | |||||||||||
Loss on early extinguishment of debt | 1,232 | — | 1,232 | — | |||||||||||
Issuance costs associated with redeemed preferred shares | 3,668 | — | 12,495 | — | |||||||||||
Normalized FFO attributable to common shares and common units | 66,071 | 50,359 | 179,149 | 150,700 | |||||||||||
Straight-line revenues, net of reserve | (133 | ) | 4,260 | (1,174 | ) | 13,410 | |||||||||
Amortization and write-off of lease contracts above and below market value | (98 | ) | (585 | ) | (320 | ) | (763 | ) | |||||||
Compensation paid with Company common shares | 1,581 | 1,326 | 4,871 | 3,955 | |||||||||||
Non real estate depreciation and amortization | 221 | 202 | 615 | 503 | |||||||||||
Amortization of deferred financing costs | 1,016 | 904 | 2,780 | 2,240 | |||||||||||
Improvements to real estate | (874 | ) | (1,185 | ) | (3,972 | ) | (2,433 | ) | |||||||
Capitalized leasing commissions | (184 | ) | (14 | ) | (3,634 | ) | (2,026 | ) | |||||||
AFFO attributable to common shares and common units | $ | 67,600 | $ | 55,267 | $ | 178,315 | $ | 165,586 | |||||||
NAREIT FFO attributable to common shares and common units per share – diluted | $ | 0.68 | $ | 0.61 | $ | 1.88 | $ | 1.78 | |||||||
Normalized FFO attributable to common shares and common units per share – diluted | $ | 0.73 | $ | 0.62 | $ | 2.04 | $ | 1.85 | |||||||
AFFO attributable to common shares and common units per share – diluted | $ | 0.75 | $ | 0.68 | $ | 2.03 | $ | 2.03 | |||||||
Weighted average common shares and common units outstanding – diluted | 90,056,833 | 81,066,670 | 87,721,185 | 81,429,886 |
September 30, 2016 | December 31, 2015 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Income producing property: | |||||||
Land | $ | 103,183 | $ | 94,203 | |||
Buildings and improvements | 2,942,410 | 2,736,936 | |||||
3,045,593 | 2,831,139 | ||||||
Less: accumulated depreciation | (635,324 | ) | (560,837 | ) | |||
Net income producing property | 2,410,269 | 2,270,302 | |||||
Construction in progress and property held for development | 282,184 | 300,939 | |||||
Net real estate | 2,692,453 | 2,571,241 | |||||
Cash and cash equivalents | 61,821 | 31,230 | |||||
Rents and other receivables, net | 12,852 | 9,588 | |||||
Deferred rent, net | 124,139 | 128,941 | |||||
Lease contracts above market value, net | 5,361 | 6,029 | |||||
Deferred costs, net | 26,752 | 23,774 | |||||
Prepaid expenses and other assets | 41,422 | 44,689 | |||||
Total assets | $ | 2,964,800 | $ | 2,815,492 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Liabilities: | |||||||
Line of credit | $ | — | $ | — | |||
Mortgage notes payable, net of deferred financing costs | 111,875 | 114,075 | |||||
Unsecured term loan, net of deferred financing costs | 248,983 | 249,172 | |||||
Unsecured notes payable, net of discount and deferred financing costs | 836,732 | 834,963 | |||||
Accounts payable and accrued liabilities | 31,671 | 32,301 | |||||
Construction costs payable | 46,549 | 22,043 | |||||
Accrued interest payable | 6,199 | 11,821 | |||||
Dividend and distribution payable | 43,678 | 43,906 | |||||
Lease contracts below market value, net | 3,144 | 4,132 | |||||
Prepaid rents and other liabilities | 73,178 | 67,477 | |||||
Total liabilities | 1,402,009 | 1,379,890 | |||||
Redeemable noncontrolling interests – operating partnership | 569,662 | 479,189 | |||||
Commitments and contingencies | — | — | |||||
Stockholders’ equity: | |||||||
Preferred stock, $.001 par value, 50,000,000 shares authorized: | |||||||
Series A cumulative redeemable perpetual preferred stock, no shares issued and outstanding at September 30, 2016 and 7,400,000 shares issued and outstanding at December 31, 2015 | — | 185,000 | |||||
Series B cumulative redeemable perpetual preferred stock, no shares issued and outstanding at September 30, 2016 and 6,650,000 shares issued and outstanding at December 31, 2015 | — | 166,250 | |||||
Series C cumulative redeemable perpetual preferred stock, 8,050,000 shares issued and outstanding at September 30, 2016 and no shares issued and outstanding at December 31, 2015 | 201,250 | — | |||||
Common stock, $.001 par value, 250,000,000 shares authorized, 75,576,481 shares issued and outstanding at September 30, 2016 and 66,105,650 shares issued and outstanding at December 31, 2015 | 76 | 66 | |||||
Additional paid in capital | 792,004 | 685,042 | |||||
Retained earnings (Accumulated deficit) | — | (79,945 | ) | ||||
Accumulated other comprehensive loss | (201 | ) | — | ||||
Total stockholders’ equity | 993,129 | 956,413 | |||||
Total liabilities and stockholders’ equity | $ | 2,964,800 | $ | 2,815,492 |
Nine months ended September 30, | |||||||
2016 | 2015 | ||||||
Cash flow from operating activities | |||||||
Net income | $ | 138,220 | $ | 87,867 | |||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||
Depreciation and amortization | 79,659 | 77,645 | |||||
Gain on sale of real estate | (22,833 | ) | — | ||||
Loss on early extinguishment of debt | 1,232 | — | |||||
Straight-line revenues, net of reserve | (1,174 | ) | 13,410 | ||||
Amortization of deferred financing costs | 2,780 | 2,240 | |||||
Amortization and write-off of lease contracts above and below market value | (320 | ) | (763 | ) | |||
Compensation paid with Company common shares | 4,871 | 7,990 | |||||
Changes in operating assets and liabilities | |||||||
Rents and other receivables | (3,203 | ) | (492 | ) | |||
Deferred costs | (3,649 | ) | (2,045 | ) | |||
Prepaid expenses and other assets | (2,051 | ) | 1,741 | ||||
Accounts payable and accrued liabilities | (1,139 | ) | 3,407 | ||||
Accrued interest payable | (5,622 | ) | (4,136 | ) | |||
Prepaid rents and other liabilities | 11,095 | 4,526 | |||||
Net cash provided by operating activities | 197,866 | 191,390 | |||||
Cash flow from investing activities | |||||||
Net proceeds from sale of real estate | 123,545 | — | |||||
Investments in real estate – development | (179,799 | ) | (154,165 | ) | |||
Acquisition of real estate | (53,105 | ) | — | ||||
Acquisition of real estate – related party | (20,168 | ) | (8,600 | ) | |||
Interest capitalized for real estate under development | (7,765 | ) | (8,557 | ) | |||
Improvements to real estate | (3,972 | ) | (2,433 | ) | |||
Additions to non real estate property | (1,012 | ) | (622 | ) | |||
Net cash used in investing activities | (142,276 | ) | (174,377 | ) | |||
Cash flow from financing activities | |||||||
Line of credit: | |||||||
Proceeds | 60,000 | 120,000 | |||||
Repayments | (60,000 | ) | (180,000 | ) | |||
Mortgage notes payable: | |||||||
Repayments | (2,500 | ) | — | ||||
Unsecured notes payable: | |||||||
Proceeds | — | 248,012 | |||||
Payments of financing costs | (5,625 | ) | (4,730 | ) | |||
Issuance of common stock, net of offering costs | 275,470 | — | |||||
Issuance of preferred stock, net of offering costs | 194,252 | — | |||||
Redemption of preferred stock | (351,250 | ) | — | ||||
Equity compensation proceeds (payments) | 8,269 | (7,611 | ) | ||||
Common stock repurchases | — | (31,912 | ) | ||||
Dividends and distributions: | |||||||
Common shares | (101,555 | ) | (82,665 | ) | |||
Preferred shares | (21,490 | ) | (20,433 | ) | |||
Redeemable noncontrolling interests – operating partnership | (20,570 | ) | (19,436 | ) | |||
Net cash (used in) provided by financing activities | (24,999 | ) | 21,225 | ||||
Net increase in cash and cash equivalents | 30,591 | 38,238 | |||||
Cash and cash equivalents, beginning of period | 31,230 | 29,598 | |||||
Cash and cash equivalents, ending of period | $ | 61,821 | $ | 67,836 | |||
Supplemental information: | |||||||
Cash paid for interest | $ | 48,537 | $ | 41,735 | |||
Deferred financing costs capitalized for real estate under development | $ | 445 | $ | 584 | |||
Construction costs payable capitalized for real estate under development | $ | 46,549 | $ | 21,534 | |||
Redemption of operating partnership units | $ | 49,547 | $ | 598 | |||
Adjustments to redeemable noncontrolling interests – operating partnership | $ | 141,947 | $ | (106,959 | ) |
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 | % | 100 | % | ||||||||||||
ACC6 | Ashburn, VA | 2011-2013 | 262,000 | 130,000 | 100 | % | 100 | % | 26.0 | 100 | % | 100 | % | ||||||||||||
ACC7 | Ashburn, VA | 2014-2016 | 446,000 | 238,000 | 87 | % | 87 | % | 41.6 | 90 | % | 90 | % | ||||||||||||
CH1 | Elk Grove Village, IL | 2008-2012 | 485,000 | 231,000 | 100 | % | 100 | % | 36.4 | 100 | % | 100 | % | ||||||||||||
CH2 Phases I/III | Elk Grove Village, IL | 2015-2016 | 245,000 | 116,000 | 100 | % | 100 | % | 19.3 | 100 | % | 100 | % | ||||||||||||
SC1 Phases I-II | 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 | % | ||||||||||||
Subtotal – stabilized | 3,225,000 | 1,606,000 | 97 | % | 97 | % | 279.6 | 98 | % | 98 | % | ||||||||||||||
Completed, not Stabilized | |||||||||||||||||||||||||
CH2 Phase II | Elk Grove Village, IL | 2016 | 74,000 | 35,000 | 76 | % | 76 | % | 6.3 | 77 | % | 77 | % | ||||||||||||
Subtotal – not stabilized | 74,000 | 35,000 | 76 | % | 76 | % | 6.3 | 77 | % | 77 | % | ||||||||||||||
Total Operating Properties | 3,299,000 | 1,641,000 | 97 | % | 97 | % | 285.9 | 97 | % | 97 | % |
(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, 2016 represent $367 million of base rent on a GAAP basis and $374 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 GAAP. |
(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 (One 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 | — | — | — | % | — | — | % | — | % | |||||||||
2017 | 4 | 33 | 2.1 | % | 5,146 | 1.8 | % | 1.9 | % | |||||||||
2018 | 20 | 177 | 11.1 | % | 33,448 | 12.0 | % | 12.7 | % | |||||||||
2019 | 25 | 316 | 19.9 | % | 56,104 | 20.1 | % | 21.8 | % | |||||||||
2020 | 15 | 182 | 11.4 | % | 31,754 | 11.4 | % | 11.6 | % | |||||||||
2021 | 16 | 284 | 17.9 | % | 50,092 | 18.0 | % | 17.1 | % | |||||||||
2022 | 10 | 140 | 8.8 | % | 24,509 | 8.8 | % | 8.8 | % | |||||||||
2023 | 8 | 92 | 5.8 | % | 13,305 | 4.8 | % | 4.3 | % | |||||||||
2024 | 8 | 112 | 7.0 | % | 19,279 | 6.9 | % | 7.3 | % | |||||||||
2025 | 4 | 47 | 3.0 | % | 7,750 | 2.8 | % | 3.5 | % | |||||||||
After 2025 | 13 | 207 | 13.0 | % | 37,178 | 13.4 | % | 11.0 | % | |||||||||
Total | 123 | 1,590 | 100 | % | 278,565 | 100 | % | 100 | % |
(1) | Represents 32 customers with 123 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, 2016. |
Period | Number of Leases | Total CRSF Leased (1) | Total MW Leased (1) | |||
Q3 2016 | 2 | 16,319 | 2.42 | |||
Q2 2016 | 4 | 72,657 | 12.52 | |||
Q1 2016 | 7 | 160,686 | 33.11 | |||
Q4 2015 | 12 | 193,373 | 32.37 | |||
Trailing Twelve Months | 25 | 443,035 | 80.42 | |||
Q3 2015 | — | — | — |
Period | Number of Renewals | Total CRSF Renewed (1) | Total MW Renewed (1) | GAAP Rent change (2) | Cash Rent Change (2) | |||||
Q3 2016 | 2 | 16,400 | 3.41 | 1.2% | 3.0% | |||||
Q2 2016 | 4 | 21,526 | 2.72 | 3.5% | 2.9% | |||||
Q1 2016 | 1 | 2,517 | 0.54 | 14.9% | 3.0% | |||||
Q4 2015 | 1 | 8,461 | 1.49 | (2.1)% | (10.0)% | |||||
Trailing Twelve Months | 8 | 48,904 | 8.16 | |||||||
Q3 2015 | 1 | 2,700 | 0.57 | 24.2% | 3.0% |
2016 | 2017 | Total | ||||
Incremental Revenue | $1,790 | $12,208 | ||||
Annualized Revenue | $8,496 | $24,416 | $32,912 |
(1) | CRSF is that portion of gross building area where customers locate their computer servers. One MW is equal to 1,000 kW. |
(2) | GAAP rent change compares the change in annualized base rent before and after the renewal. Cash rent change compares cash base rent at renewal execution to cash base rent at the start of the renewal period. |
Customer | Number of Buildings | Number of Markets | Remaining Term | % of Annualized Base Rent (1) | |||||||||
1 | Microsoft | 9 | 3 | 7.0 | 26.0 | % | |||||||
2 | Facebook | 4 | 1 | 4.1 | 20.1 | % | |||||||
3 | Fortune 25 Investment Grade-Rated Company | 3 | 3 | 4.2 | 11.1 | % | |||||||
4 | Rackspace | 3 | 2 | 8.8 | 8.9 | % | |||||||
5 | Fortune 500 leading Software as a Service (SaaS) Provider, Not Rated | 4 | 2 | 6.6 | 7.6 | % | |||||||
6 | Yahoo! (2) | 1 | 1 | 1.6 | 6.0 | % | |||||||
7 | Server Central | 1 | 1 | 4.9 | 2.5 | % | |||||||
8 | Fortune 50 Investment Grade-Rated Company | 2 | 1 | 3.7 | 2.0 | % | |||||||
9 | Dropbox | 1 | 1 | 2.3 | 1.6 | % | |||||||
10 | IAC | 1 | 1 | 2.6 | 1.5 | % | |||||||
11 | Symantec | 2 | 1 | 2.7 | 1.3 | % | |||||||
12 | GoDaddy | 1 | 1 | 10.0 | 1.1 | % | |||||||
13 | UBS | 1 | 1 | 8.8 | 1.0 | % | |||||||
14 | Anexio | 3 | 1 | 7.3 | 0.9 | % | |||||||
15 | Sanofi Aventis | 2 | 1 | 4.8 | 0.9 | % | |||||||
Total | 92.5 | % |
(1) | Annualized base rent represents monthly contractual base rent for commenced leases (defined as cash base rent before abatements) multiplied by 12 for commenced leases as of October 1, 2016. |
(2) | Comprised of a lease at ACC4 that has been fully subleased to another DFT customer. |
Same Store Properties | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
30-Sep-16 | 30-Sep-15 | % Change | 30-Jun-16 | % Change | 30-Sep-16 | 30-Sep-15 | % Change | |||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||
Base rent | $ | 80,466 | $ | 73,500 | 9.5 | % | $ | 76,929 | 4.6 | % | $ | 234,243 | $ | 212,576 | 10.2 | % | ||||||||||||||
Recoveries from tenants | 42,011 | 33,210 | 26.5 | % | 39,215 | 7.1 | % | 116,933 | 96,254 | 21.5 | % | |||||||||||||||||||
Other revenues | 573 | 395 | 45.1 | % | 435 | 31.7 | % | 1,427 | 1,135 | 25.7 | % | |||||||||||||||||||
Total revenues | 123,050 | 107,105 | 14.9 | % | 116,579 | 5.6 | % | 352,603 | 309,965 | 13.8 | % | |||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||
Property operating costs | 37,351 | 29,870 | 25.0 | % | 35,022 | 6.7 | % | 105,157 | 85,819 | 22.5 | % | |||||||||||||||||||
Real estate taxes and insurance | 4,445 | 4,286 | 3.7 | % | 4,677 | (5.0 | )% | 13,208 | 13,525 | (2.3 | )% | |||||||||||||||||||
Other expenses | 49 | 13 | N/M | (50 | ) | N/M | 106 | 53 | 100.0 | % | ||||||||||||||||||||
Total expenses | 41,845 | 34,169 | 22.5 | % | 39,649 | 5.5 | % | 118,471 | 99,397 | 19.2 | % | |||||||||||||||||||
Net operating income (1) | 81,205 | 72,936 | 11.3 | % | 76,930 | 5.6 | % | 234,132 | 210,568 | 11.2 | % | |||||||||||||||||||
Straight-line revenues, net of reserve | 794 | 2,534 | N/M | 1,338 | N/M | 339 | 8,325 | N/M | ||||||||||||||||||||||
Amortization of lease contracts above and below market value | (98 | ) | (585 | ) | N/M | (106 | ) | (7.5 | )% | (320 | ) | (763 | ) | N/M | ||||||||||||||||
Cash net operating income (1) | $ | 81,901 | $ | 74,885 | 9.4 | % | $ | 78,162 | 4.8 | % | $ | 234,151 | $ | 218,130 | 7.3 | % | ||||||||||||||
Note: Same Store Properties represent those properties placed into service on or before January 1, 2015 and excludes CH2. NJ1 is also excluded since it was sold in June 2016. | ||||||||||||||||||||||||||||||
Same Store, Same Capital Properties | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
30-Sep-16 | 30-Sep-15 | % Change | 30-Jun-16 | % Change | 30-Sep-16 | 30-Sep-15 | % Change | |||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||
Base rent | $ | 60,388 | $ | 60,271 | 0.2 | % | $ | 59,518 | 1.5 | % | $ | 180,153 | $ | 178,842 | 0.7 | % | ||||||||||||||
Recoveries from tenants | 29,024 | 24,427 | 18.8 | % | 27,163 | 6.9 | % | 81,440 | 73,684 | 10.5 | % | |||||||||||||||||||
Other revenues | 380 | 343 | 10.8 | % | 360 | 5.6 | % | 1,092 | 1,007 | 8.4 | % | |||||||||||||||||||
Total revenues | 89,792 | 85,041 | 5.6 | % | 87,041 | 3.2 | % | 262,685 | 253,533 | 3.6 | % | |||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||
Property operating costs | 26,300 | 22,210 | 18.4 | % | 24,303 | 8.2 | % | 73,976 | 65,893 | 12.3 | % | |||||||||||||||||||
Real estate taxes and insurance | 2,700 | 2,281 | 18.4 | % | 2,995 | (9.8 | )% | 8,134 | 6,761 | 20.3 | % | |||||||||||||||||||
Other expenses | 17 | 9 | N/M | (68 | ) | N/M | 52 | 29 | 79.3 | % | ||||||||||||||||||||
Total expenses | 29,017 | 24,500 | 18.4 | % | 27,230 | 6.6 | % | 82,162 | 72,683 | 13.0 | % | |||||||||||||||||||
Net operating income (1) | 60,775 | 60,541 | 0.4 | % | 59,811 | 1.6 | % | 180,523 | 180,850 | (0.2 | )% | |||||||||||||||||||
Straight-line revenues, net of reserve | 3,020 | 4,244 | (28.8 | )% | 3,538 | (14.6 | )% | 7,890 | 12,718 | (38.0 | )% | |||||||||||||||||||
Amortization of lease contracts above and below market value | (98 | ) | (585 | ) | N/M | (106 | ) | (7.5 | )% | (320 | ) | (763 | ) | N/M | ||||||||||||||||
Cash net operating income (1) | $ | 63,697 | $ | 64,200 | (0.8 | )% | $ | 63,243 | 0.7 | % | $ | 188,093 | $ | 192,805 | (2.4 | )% | ||||||||||||||
Note: Same Store, Same Capital properties represent those properties placed into service on or before January 1, 2015 and have less than 10% of additional critical load developed after January 1, 2015. Excludes CH2, SC1 and ACC7. NJ1 is also excluded since it was sold in June 2016. (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-16 | 30-Sep-15 | % Change | 30-Jun-16 | % Change | 30-Sep-16 | 30-Sep-15 | % Change | |||||||||||||||||||||||
Operating income | $ | 56,380 | $ | 42,978 | 31.2 | % | $ | 49,975 | 12.8 | % | $ | 155,466 | $ | 119,098 | 30.5 | % | ||||||||||||||
Add-back: non-same store operating loss | (418 | ) | 6,138 | (106.8 | )% | 2,315 | (118.1 | )% | 4,522 | 20,413 | (77.8 | )% | ||||||||||||||||||
Same Store: | ||||||||||||||||||||||||||||||
Operating income | 55,962 | 49,116 | 13.9 | % | 52,290 | 7.0 | % | 159,988 | 139,511 | 14.7 | % | |||||||||||||||||||
Depreciation and amortization | 25,243 | 23,820 | 6.0 | % | 24,640 | 2.4 | % | 74,144 | 71,057 | 4.3 | % | |||||||||||||||||||
Net operating income | 81,205 | 72,936 | 11.3 | % | 76,930 | 5.6 | % | 234,132 | 210,568 | 11.2 | % | |||||||||||||||||||
Straight-line revenues, net of reserve | 794 | 2,534 | N/M | 1,338 | N/M | 339 | 8,325 | N/M | ||||||||||||||||||||||
Amortization of lease contracts above and below market value | (98 | ) | (585 | ) | N/M | (106 | ) | (7.5 | )% | (320 | ) | (763 | ) | N/M | ||||||||||||||||
Cash net operating income | $ | 81,901 | $ | 74,885 | 9.4 | % | $ | 78,162 | 4.8 | % | $ | 234,151 | $ | 218,130 | 7.3 | % | ||||||||||||||
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-16 | 30-Sep-15 | % Change | 30-Jun-16 | % Change | 30-Sep-16 | 30-Sep-15 | % Change | |||||||||||||||||||||||
Operating income | $ | 56,380 | $ | 42,978 | 31.2 | % | $ | 49,975 | 12.8 | % | $ | 155,466 | $ | 119,098 | 30.5 | % | ||||||||||||||
Less: non-same store operating (income) loss | (14,583 | ) | (1,617 | ) | N/M | (9,153 | ) | 59.3 | % | (31,837 | ) | 3,318 | N/M | |||||||||||||||||
Same Store: | ||||||||||||||||||||||||||||||
Operating income | 41,797 | 41,361 | 1.1 | % | 40,822 | 2.4 | % | 123,629 | 122,416 | 1.0 | % | |||||||||||||||||||
Depreciation and amortization | 18,978 | 19,180 | (1.1 | )% | 18,989 | (0.1 | )% | 56,894 | 58,434 | (2.6 | )% | |||||||||||||||||||
Net operating income | 60,775 | 60,541 | 0.4 | % | 59,811 | 1.6 | % | 180,523 | 180,850 | (0.2 | )% | |||||||||||||||||||
Straight-line revenues, net of reserve | 3,020 | 4,244 | (28.8 | )% | 3,538 | (14.6 | )% | 7,890 | 12,718 | (38.0 | )% | |||||||||||||||||||
Amortization of lease contracts above and below market value | (98 | ) | (585 | ) | N/M | (106 | ) | (7.5 | )% | (320 | ) | (763 | ) | N/M | ||||||||||||||||
Cash net operating income | $ | 63,697 | $ | 64,200 | (0.8 | )% | $ | 63,243 | 0.7 | % | $ | 188,093 | $ | 192,805 | (2.4 | )% |
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 IV (6) | Ashburn, VA | 96,000 | 52,000 | 8.2 | $72,000 - $74,000 | 68,156 | 41 | % | 49 | % | |||||||||||||
ACC9 Phase I | Ashburn, VA | 163,000 | 90,000 | 14.4 | 126,000 - 132,000 | 29,718 | — | % | — | % | |||||||||||||
ACC9 Phase II | Ashburn, VA | 163,000 | 90,000 | 14.4 | 126,000 - 132,000 | 29,156 | — | % | — | % | |||||||||||||
CH2 Phase IV | Elk Grove Village, IL | 9,000 | 7,000 | 1.2 | 8,000 - 8,600 | 7,574 | 100 | % | 100 | % | |||||||||||||
SC1 Phase III | Santa Clara, CA | 111,000 | 64,000 | 16.0 | 160,000 - 165,000 | 63,945 | 100 | % | 100 | % | |||||||||||||
542,000 | 303,000 | 54.2 | 492,000 - 511,600 | 198,549 | |||||||||||||||||||
Land/Shell Held for Development (7) | |||||||||||||||||||||||
ACC8 | Ashburn, VA | 100,000 | 50,000 | 10.4 | 4,248 | ||||||||||||||||||
ACC10 | Ashburn, VA | 270,000 | 130,000 | 27.0 | 8,017 | ||||||||||||||||||
ACC11 | Ashburn, VA | 150,000 | 80,000 | 16.0 | 4,775 | ||||||||||||||||||
CH3 | Elk Grove Village, IL | 305,000 | 160,000 | 25.6 | 11,071 | ||||||||||||||||||
OR1 | Hillsboro, OR | 489,000 | 245,000 | 48.0 | 6,023 | ||||||||||||||||||
OR2 | Hillsboro, OR | 489,000 | 245,000 | 48.0 | 6,022 | ||||||||||||||||||
TOR1 | Vaughan, ON | 600,000 | 223,000 | 46.0 | 43,479 | ||||||||||||||||||
2,403,000 | 1,133,000 | 221.0 | 83,635 | ||||||||||||||||||||
Total | 2,945,000 | 1,436,000 | 275.2 | $ | 282,184 |
(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 (One 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, 2016. 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) | ACC7 Phase IV was placed into service on October 1, 2016. |
(7) | Amounts listed for gross building area, CRSF and critical load are estimates. |
September 30, 2016 | ||||||||||||
Amounts (1) | % of Total | Rates | Maturities (years) | |||||||||
Secured | $ | 112,500 | 9 | % | 2.1 | % | 1.5 | |||||
Unsecured | 1,100,000 | 91 | % | 4.9 | % | 5.4 | ||||||
Total | $ | 1,212,500 | 100 | % | 4.7 | % | 5.1 | |||||
Fixed Rate Debt: | ||||||||||||
Unsecured Notes due 2021 | $ | 600,000 | 49 | % | 5.9 | % | 5.0 | |||||
Unsecured Notes due 2023 (2) | 250,000 | 21 | % | 5.6 | % | 6.7 | ||||||
Fixed Rate Debt | 850,000 | 70 | % | 5.8 | % | 5.5 | ||||||
Floating Rate Debt: | ||||||||||||
Unsecured Credit Facility | — | — | % | — | % | 3.8 | ||||||
Unsecured Term Loan | 250,000 | 21 | % | 2.0 | % | 5.3 | ||||||
ACC3 Term Loan | 112,500 | 9 | % | 2.1 | % | 1.5 | ||||||
Floating Rate Debt | 362,500 | 30 | % | 2.0 | % | 4.1 | ||||||
Total | $ | 1,212,500 | 100 | % | 4.7 | % | 5.1 |
Note: | We capitalized interest and deferred financing cost amortization of $1.7 million and $8.2 million during the three and nine months ended September 30, 2016, respectively. |
(1) | Principal amounts exclude deferred financing costs. |
(2) | Principal amount excludes original issue discount of $1.7 million as of September 30, 2016. |
Year | Fixed Rate (1) | Floating Rate (1) | Total (1) | % of Total | Rates | |||||||||||||||
2016 | $ | — | $ | 1,250 | (4) | $ | 1,250 | 0.1 | % | 2.1 | % | |||||||||
2017 | — | 8,750 | (4) | 8,750 | 0.7 | % | 2.1 | % | ||||||||||||
2018 | — | 102,500 | (4) | 102,500 | 8.5 | % | 2.1 | % | ||||||||||||
2019 | — | — | — | — | % | — | % | |||||||||||||
2020 | — | — | — | — | % | — | % | |||||||||||||
2021 | 600,000 | (2) | — | 600,000 | 49.5 | % | 5.9 | % | ||||||||||||
2022 | — | 250,000 | (5) | 250,000 | 20.6 | % | 2.0 | % | ||||||||||||
2023 | 250,000 | (3) | — | 250,000 | 20.6 | % | 5.6 | % | ||||||||||||
Total | $ | 850,000 | $ | 362,500 | $ | 1,212,500 | 100.0 | % | 4.7 | % |
(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 $1.8 million as of September 30, 2016. |
(4) | The ACC3 Term Loan matures on March 27, 2018 with no extension option. Quarterly principal payments of $1.25 million began on April 1, 2016, increase to $2.5 million on April 1, 2017 and continue through maturity. |
(5) | The Unsecured Term Loan matures on January 21, 2022 with no extension option. |
9/30/16 | 12/31/15 | ||
Interest Coverage Ratio (not less than 2.0) | 5.3 | 4.8 | |
Total Debt to Gross Asset Value (not to exceed 60%) | 33.6% | 35.9% | |
Secured Debt to Total Assets (not to exceed 40%) | 3.1% | 3.4% | |
Total Unsecured Assets to Unsecured Debt (not less than 150%) | 240% | 245% |
(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 | 112,500 | ||||||||||||||||
Unsecured Term Loan | 250,000 | ||||||||||||||||
Unsecured Notes | 850,000 | ||||||||||||||||
Total Debt | 1,212,500 | 23.8 | % | ||||||||||||||
Common Shares | 85 | % | 75,576 | ||||||||||||||
Operating Partnership (“OP”) Units | 15 | % | 13,810 | ||||||||||||||
Total Shares and Units | 100 | % | 89,386 | ||||||||||||||
Common Share Price at September 30, 2016 | $ | 41.25 | |||||||||||||||
Common Share and OP Unit Capitalization | $ | 3,687,173 | |||||||||||||||
Preferred Stock ($25 per share liquidation preference) | 201,250 | ||||||||||||||||
Total Equity | 3,888,423 | 76.2 | % | ||||||||||||||
Total Market Capitalization | $ | 5,100,923 | 100.0 | % |
Q3 2016 | Q3 2015 | YTD 3Q 2016 | YTD 3Q 2015 | ||||||||
Weighted Average Amounts Outstanding for EPS Purposes: | |||||||||||
Common Shares - basic | 75,232,413 | 65,041,159 | 72,212,874 | 65,190,737 | |||||||
Effect of dilutive securities | 863,581 | 520,732 | 859,253 | 728,239 | |||||||
Common Shares - diluted | 76,095,994 | 65,561,891 | 73,072,127 | 65,918,976 | |||||||
Weighted Average Amounts Outstanding for FFO, Normalized FFO and AFFO Purposes: | |||||||||||
Common Shares - basic | 75,232,413 | 65,041,159 | 72,212,874 | 65,190,737 | |||||||
OP Units - basic | 13,810,197 | 15,419,237 | 14,478,959 | 15,419,566 | |||||||
Total Common Shares and OP Units | 89,042,610 | 80,460,396 | 86,691,833 | 80,610,303 | |||||||
Effect of dilutive securities | 1,014,223 | 606,274 | 1,029,352 | 819,583 | |||||||
Common Shares and Units - diluted | 90,056,833 | 81,066,670 | 87,721,185 | 81,429,886 | |||||||
Period Ending Amounts Outstanding: | |||||||||||
Common Shares | 75,576,481 | ||||||||||
OP Units | 13,809,998 | ||||||||||
Total Common Shares and Units | 89,386,479 |
Expected Q4 2016 per share | Expected 2016 per share | ||
Net income per common share and common unit - diluted | $0.42 to $0.45 | $1.64 to $1.67 | |
Depreciation and amortization, net | 0.31 | 1.22 | |
Gain on sale of real estate | — | (0.26) | |
NAREIT FFO per common share and common unit - diluted (1) | $0.73 to $0.76 | $2.60 to $2.63 | |
Severance and equity acceleration | — | 0.01 | |
Loss on early extinguishment of debt | — | 0.01 | |
Issuance costs associated with redeemed preferred shares | — | 0.15 | |
Normalized FFO per common share and common unit - diluted (1) | $0.73 to $0.76 | $2.77 to $2.80 | |
Straight-line revenues, net of reserve | 0.01 | — | |
Amortization of lease contracts above and below market value | — | (0.01) | |
Compensation paid with Company common shares | 0.02 | 0.08 | |
Non real estate depreciation and amortization | — | 0.01 | |
Amortization of deferred financing costs | 0.01 | 0.05 | |
Improvements to real estate | (0.02) | (0.07) | |
Capitalized leasing commissions | (0.01) | (0.05) | |
AFFO per common share and common unit - diluted (1) | $0.74 to $0.77 | $2.78 to $2.81 |
2016 Debt Assumptions | ||
Weighted average debt outstanding | $1,223.0 million | |
Weighted average interest rate (one-month LIBOR avg. 0.46%) | 4.82% | |
Total interest costs | $58.9 million | |
Amortization of deferred financing costs | 4.3 million | |
Interest expense capitalized | (10.0) million | |
Deferred financing costs amortization capitalized | (0.6) million | |
Total interest expense after capitalization | $52.6 million | |
2016 Other Guidance Assumptions | ||
Total revenues | $520 to $525 million | |
Base rent (included in total revenues) | $343 to $347 million | |
General and administrative expense | $22 to $23 million | |
Investments in real estate - development (2) | $280 to $300 million | |
Improvements to real estate excluding development | $6 million | |
Preferred stock dividends, excluding write-off of issuance costs of redeemed preferred shares | $21 million | |
Annualized common stock dividend | $1.88 per share | |
Weighted average common shares and OP units - diluted | 89 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, which was placed into service on April 1, 2016; CH2 Phase III, which was placed into service on July 1, 2016; ACC7 Phase III, which was placed into service on June 1, 2016; ACC7 Phase IV which was placed into service on October 1, 2016; ACC9 Phases I and II, CH2 Phase IV and SC1 Phase III, which are currently in development; and TOR1 Phase I (Toronto), OR1 Phase I (Hillsboro, OR) and CH3 Phase I, which are planned future developments that require Board approval. |