Press Release

CoreSite Reports Second Quarter 2020 Financial Results

July 30, 2020 at 6:30 AM EDT
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-- Completed Construction of CH2 Phase 1, Comprised of 55,000 NRSF --

-- Completed the 52,000 NRSF Expansion at SV8 Phase 3 --

-- Increased Liquidity with $150 Million of Senior Notes --

DENVER--(BUSINESS WIRE)--Jul. 30, 2020-- CoreSite Realty Corporation (NYSE:COR) (“the Company”), a premier provider of secure, reliable, high-performance data center, cloud and interconnection solutions across the U.S., today announced financial results for the second quarter ended June 30, 2020.

Q2 2020 Quarterly Highlights

  • Key Financial Results –
  • Grew operating revenues to $150.5 million, an increase of 5.3% year over year and 2.2% sequentially
  • Delivered net income of $0.52 per common diluted share, a decrease of $0.01 year over year and an increase of $0.04 sequentially
  • Generated Funds From Operations (“FFO”) of $1.35 per diluted share and unit, an increase of $0.08, or 6.3% year over year and $0.06 sequentially, or 4.7%
  • We declared a dividend of $1.22 per share for the second quarter, which was paid on July 15th
  • Lease Commencements
  • Commenced 121 new and expansion leases for 45,271 net rentable square feet (“NRSF”), representing $7.9 million of annualized GAAP rent, for an average rate of $175 per square foot
  • Leasing Activity
  • Signed 112 new and expansion leases for 22,191 NRSF and $3.5 million of annualized GAAP rent, for an average rate of $156 per square foot
  • Renewed 333 leases for 174,926 NRSF and $25.0 million of annualized GAAP rent, for an average rate of $143 per square foot, reflecting a reduction of 1.5% in cash rent and an increase of 5.5% in GAAP rent, and 1.0% churn

Q2 2020 Notable Events

  • Delivered new data center capacity of approximately 107,000 NRSF
  • Completed Phase 1 of our new CH2 building, comprised of 55,000 NRSF, and
  • Placed into service our data center expansion at SV8 Phase 3, comprised of 52,000 NRSF
  • Increased Liquidity with Financing and Funding
  • On May 6th, executed a $150 million financing and received proceeds of $100 million, and
  • On July 14th, received the remaining proceeds of $50 million
  • All proceeds were used to repay outstanding amounts on our revolving credit facility

“We successfully completed and placed into service Phase 1 of our new CH2 data center, the first purpose-built, enterprise-class data center in downtown Chicago, and our third and final phase of our SV8 development providing over 100,000 NRSF of sellable capacity in two of our top markets,” said Paul Szurek, CoreSite’s President and Chief Executive Officer. “During these uncertain times, the strategic nature of our diverse, network-and-cloud-dense campuses, and the interoperability of our diverse customer ecosystem continue to meet the essential needs of our customers.”

Sales Activity

CoreSite achieved new and expansion sales of $3.5 million of annualized GAAP rent for the quarter.

“We believe we are well positioned to continue to take advantage of our available capacity more effectively in the marketplace,” said Steve Smith, CoreSite’s Chief Revenue Officer. “Although sales cycles are longer in this economic environment, we continue translating our new capacity into increased sales opportunities as we grow with new and existing customers moving to or expanding high-performance, hybrid-cloud footprints and increasing their data storage and compute in our major metropolitan markets.”

Development Activity

CoreSite continues to execute on its property development pipeline.

  • Completed Construction
    During the second quarter, the Company completed and placed into service CH2 Phase 1 comprised of approximately 55,000 NRSF and SV8 Phase 3 comprised of approximately 52,000 NRSF.
  • Construction in Progress
    As of June 30, 2020, CoreSite had a total of approximately 51,000 NRSF and an incremental 10 megawatts of turn-key data center capacity under construction, as detailed below.

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