Press Release

CoreSite Reports Fourth Quarter 2019 Financial Results

February 6, 2020 at 6:30 AM EST
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-- Achieved Company Record for New and Expansion Sales in 2019 --

-- Delivered New Data Center Capacity of 224,000 Square Feet for Year, including 74,000 in Q4 --

-- Additional Capacity Currently Under Development of 196,000 Square Feet --

DENVER--(BUSINESS WIRE)--Feb. 6, 2020-- CoreSite Realty Corporation (NYSE:COR) (“the Company”), a premier provider of secure, reliable, high-performance data center and interconnection solutions across the U.S., today announced financial results for the fourth quarter ended December 31, 2019.

2019 Annual Highlights

  • Key Financial Results –
  • Grew operating revenues to $572.7 million, an annual increase of 5.2%
  • Delivered net income of $2.05 per common diluted share, an annual decrease of $0.17
  • Generated Funds From Operations “FFO” of $5.10 per diluted share & unit, an annual increase of $0.04
  • Commenced $48.3 million of annualized GAAP rent, an increase of 46.8% over 2018
  • Signed $55.0 million of annualized GAAP rent, nearly double the $27.7 million in 2018
  • Delivered new data center capacity of 224,000 square feet

Q4 Quarterly Highlights

  • Key Financial Results –
  • Grew operating revenues to $146.0 million, an increase of 5.0% year over year and 0.8% sequentially
  • Delivered net income of $0.51 per common diluted share, a decrease of $0.03 year over year and an increase of $0.04 sequentially
  • Generated FFO of $1.30 per diluted share & unit, an increase of $0.04, or 3.2%, year over year and $0.02 sequentially
  • Lease Commencements
  • Commenced 130 new and expansion leases for 86,187 net rentable square feet (“NRSF”), representing $16.6 million of annualized GAAP rent, for an average rate of $193 per square foot
  • Leasing Activity
  • Signed 129 new and expansion leases for 30,770 NRSF and $6.6 million of annualized GAAP rent, for an average rate of $216 per square foot
  • Renewed 323 leases for 151,057 NRSF and $21.9 million of annualized GAAP rent, for an average rate of $145 per square foot, reflecting a decrease of 0.8% in cash rent, an increase of 0.1% in GAAP rent, and 2.9% churn

Q4 2019 Notable Events

  • Placed into Service Data Center Expansions of approximately 74,000 square feet
  • Delivered into service SV8 Phase 2 for 54,000 NRSF with 100% occupancy, and BO1 for 20,000 NRSF

“We executed well on our 2019 priorities for sustainable growth including achieving a record leasing year,” said Paul Szurek, CoreSite’s President and Chief Executive Officer. “We delivered significant new capacity in 2019 with more coming in 2020, and our pipeline supports agile capacity additions for future growth. We believe our connected campuses, and the interoperability they enable for our customers, positions us well to benefit from secular tailwinds for data center space and the increasing demand for powerful, scalable hybrid-cloud solutions.”

Sales Activity

CoreSite achieved new and expansion sales of $6.6 million of annualized GAAP rent for the quarter.

“We delivered a record level of sales for 2019, which included ongoing growth in core retail colocation as well as strategic scale leasing,” said Steve Smith, Chief Revenue Officer. “Our new data center capacity enabled us to achieve $55.0 million in annualized GAAP rent in 2019, which was nearly double our 2018 sales of $27.7 million. Our results reflect growing traction with enterprises moving to high performance hybrid cloud architectures within our customer ecosystems and our success in solving our customers’ dynamic requirements. Also as part of our leasing, annualized GAAP rent for sales to new logos increased 50% over 2018.”

Development Activity

CoreSite continues to execute on its property development pipeline and exited 2019 with 25% available capacity in NRSF in its top five markets, compared to 16% at the end of 2018.

  • Completed Construction
    During the fourth quarter, CoreSite completed construction of SV8 Phase 2, by delivering approximately 54,000 NRSF, and commenced the customer lease in December. CoreSite also completed construction of nearly 20,000 NRSF at BO1. For the year, the Company completed and placed into service about 224,000 NRSF.
  • Construction in Progress
    As of December 31, 2019, CoreSite had a total of approximately 196,000 NRSF of turn-key data center capacity under construction, as detailed below.

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