CyrusOne says data center leasing remains strong

CyrusOne reported Q3 2021 revenue of $304.1 million, up 16% compared to a year earlier. The increase in revenue was driven primarily by a 13% increase in occupied CSF and higher metered power reimbursements.

Net income was $6.7 million for the third quarter, compared to net loss of $(37.3) million in the same period in 2020. Net income for the third quarter included a $14.4 million gain associated with a change in fair value on the undesignated portion of the Company’s net investment hedge compared to a $(22.9) million loss in the third quarter of 2020.

“We had strong financial results and another good bookings quarter, including a significant contribution from our European markets and healthy pricing across the leases,” said David Ferdman, interim president and chief executive officer of CyrusOne. “The demand environment remains strong, we continue to have productive discussions with our customers, and we are well positioned with capacity across the portfolio and more than $2 billion of available liquidity to support our growth.”

Some highlights:

CyrusOne leased approximately 20 MW of power and 100,000 CSF in the third quarter, representing approximately $3.2 million in monthly recurring rent, inclusive of the monthly impact of installation charges.
The leasing for the quarter represents approximately $37.8 million in annualized GAAP revenue, excluding estimates for pass-through power.
The weighted average lease term of the new leases, based on square footage, is 108 months (9.0 years), and the weighted average remaining lease term of CyrusOne’s portfolio is 51 months (taking into consideration the impact of the backlog).
Recurring rent churn percentage for the third quarter was 0.5%, compared to 0.6% for the same period in 2020.
In the third quarter, the Company completed construction on 161,000 CSF and 38 MW of power capacity across Phoenix, Northern Virginia, the New York Metro area, Cincinnati, Paris and Frankfurt.
Percentage CSF leased as of the end of the third quarter was 86% for stabilized properties and 84% overall.
In addition, the company has development projects underway in London, Frankfurt, Northern Virginia and San Antonio that are expected to add approximately 211,000 CSF and 49 MW of power capacity plus 469,000 square feet of powered shell.