Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2015

Interim Condensed Consolidating Balance Sheet
June 30, 2015
(in thousands)


	Guarantor Subsidiaries	Non-Guarantor Subsidiaries	Eliminations	Consolidated
ASSETS
Real Estate Assets
Land	$ 51,300	$ 1,130	$ -	$ 52,430
Buildings and improvements	993,748	79,372	-	1,073,120
Less: Accumulated depreciation	(204,606)	(678)	-	(205,284)
	840,442	79,824	-	920,266
Construction in progress	308,758	12,127	-	320,885
Real Estate Assets, net	1,149,200	91,951	-	1,241,151
Cash and cash equivalents	6,117	4,627	-	10,744
Rents and other receivables, net	18,294	12,254		30,548
Acquired intangibles, net	30,158	91,847	-	122,005
Deferred costs, net	38,013	-	-	38,013
Prepaid expenses	5,534	1,598	-	7,132
Goodwill	-	173,237	-	173,237
Investment in subsidiaries	294,858	-	(294,858)	-
Other assets, net	28,563	635	-	29,198
TOTAL ASSETS	$ 1,570,737	$ 376,149	$ (294,858)	$ 1,652,028

LIABILITIES
Mortgage notes payable	$ 70,000	$ -	$ -	$ 70,000
Unsecured credit facility	330,000	-	-	330,000
Senior notes, net of discount	297,852	-	-	297,852
Capital lease and lease financing obligations	12,379	43,832	-	56,211
Accounts payable and accrued liabilities	84,816	7,892	-	92,708
Dividends and distributions payable	15,322	-	-	15,322
Advance rents, security deposits and other liabilities	16,600	2,844	-	19,444
Deferred income taxes	(3,135)	19,584	-	16,449
Deferred income	12,418	7,139	-	19,557
TOTAL LIABILITIES	836,252	81,291	-	917,543
PARTNERS' CAPITAL
Partners' capital	734,485	294,858	(294,858)	734,485
TOTAL LIABILITIES AND PARTNERS' CAPITAL	$ 1,570,737	$ 376,149	$ (294,858)	$ 1,652,028

Interim Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
Three Months Ended June 30, 2015
(in thousands)


	Guarantor Subsidiaries	Non-Guarantor Subsidiaries	Eliminations	Consolidated
Revenues:
Rental	$ 50,740	$ 1,453	$ -	$ 52,193
Recoveries from customers	5,582	-	-	5,582
Cloud and managed services	5,958	2,262	-	8,220
Other	2,120	2	-	2,122
Total revenues	64,400	3,717	-	68,117
Operating Expenses:
Property operating costs	20,564	1,467	-	22,031
Real estate taxes and insurance	1,474	-	-	1,474
Depreciation and amortization	16,876	1,186	-	18,062
General and administrative	13,781	834	-	14,615
Restructuring	-	-	-	-
Transaction and integration costs	4,669	-	-	4,669
Total operating expenses	57,364	3,487	-	60,851
Operating income	7,036	230	-	7,266

Other income and expenses:
Interest income	1	-	-	1
Interest expense	(4,743)	(56)	-	(4,799)
Other (expense) income, net	(83)	-	-	(83)
Equity in net income of subsidiaries	174	-	(174)	-
Income (loss) before taxes	2,385	174	(174)	2,385
Tax benefit of taxable REIT subsidiaries	3,135	-	-	3,135
Net income (loss)	$ 5,520	$ 174	$ (174)	$ 5,520

Interim Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
Six Months Ended June 30, 2015
(in thousands)


	Guarantor Subsidiaries	Non-Guarantor Subsidiaries	Eliminations	Consolidated
Revenues:
Rental	$ 100,073	$ 1,453	$ -	$ 101,526
Recoveries from customers	11,246	-	-	11,246
Cloud and managed services	11,753	2,262	-	14,015
Other	2,714	2	-	2,716
Total revenues	125,786	3,717	-	129,503
Operating Expenses:
Property operating costs	39,900	1,467	-	41,367
Real estate taxes and insurance	2,959	-	-	2,959
Depreciation and amortization	33,119	1,186	-	34,305
General and administrative	27,619	834	-	28,453
Restructuring		-	-	-
Transaction and integration costs	4,774	-	-	4,774
Total operating expenses	108,371	3,487	-	111,858
Operating income	17,415	230	-	17,645

Other income and expenses:
Interest income	1	-	-	1
Interest expense	(10,085)	(56)	-	(10,141)
Other (expense) income, net	(83)	-	-	(83)
Equity in net income of subsidiaries	174	-	(174)	-
Income (loss) before taxes	7,422	174	(174)	7,422
Tax benefit of taxable REIT subsidiaries	3,135	-	-	3,135
Net income (loss)	$ 10,557	$ 174	$ (174)	$ 10,557

Interim Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2015
(in thousands)


	Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidated
Net cash provided by operating activities	$	36,534	$	4,627	$	41,161

Cash flow from investing activities:
Acquisitions, net of cash acquired		(288,865)		-		(288,865)
Additions to property and equipment		(170,150)		-		(170,150)
Cash used in investing activities		(459,015)		-		(459,015)

Cash flow from financing activities:
Credit facility proceeds		350,162		-		350,162
Debt repayment		(260,000)		-		(260,000)
Payment of deferred financing costs		(512)		-		(512)
Payment of cash dividends		(19,673)		-		(19,673)
Partnership distributions		(4,414)		-		(4,414)
Principal payments on capital lease obligations		(1,227)		-		(1,227)
Scheduled mortgage principal debt repayments		(16,600)		-		(16,600)
Equity proceeds, net of costs		370,074		-		370,074
Net cash provided by financing activities		417,810		-		417,810

Net (decrease) increase in cash and cash equivalents		(4,671)		4,627		(44)
Cash and cash equivalents, beginning of period		10,788		-		10,788
Cash and cash equivalents, end of period	$	6,117	$	4,627	$	10,744