QTS hits nearly half a billion Dollars in revenues, breaks ground on Silicon Forest 250MW MEGA data centre
It has been a busy 24 hours for North American operator QTS with earnings being released, new projects announced and a promising forecast for 2020.
QTS Realty Trust, Inc. (NYSE: QTS) has reported its full year results for 2019 with a 6.7% increase in revenues taking the business closer to the $500 million club of data centre operators.
In total, the Kansas-based provider shared a total revenue of $480.8 million for the last full year, up from 2018’s $450.5 million.
QTS recognised net income of $29.2 million for the year ended December 31, 2019, compared to net loss of $7.2 million recognised for the year ended December 31, 2018.
Net income attributable to common stockholders for the year of 2019 was $0.9 million ($0.13 net loss per basic and diluted common share), compared to net loss attributable to common stockholders of $21.1 million ($0.44 net loss per basic and diluted common share) in 2018.
The company attributed the change in net income (loss) and net income (loss) to common stockholders to a reduction in restructuring expenses of approximately $37.9 million related to costs incurred in the prior year associated with the “company’s strategic growth plan as well as $14.8 million of gain on sale of real estate recognized in the current year primarily associated with the company’s assets that were contributed to a joint venture”.
Chad Williams, Chairman and CEO of QTS, said: “2019 represented another year of strong execution for QTS highlighted by a record-setting leasing performance in both the fourth quarter and full-year. We were pleased to close out 2019 with a $93 million booked-not-billed backlog which provides solid momentum and visibility into another year of strong growth in 2020.”
QTS generated $250.4 million of Adjusted EBITDA during 2019, an increase of 14.8% compared to Core Adjusted EBITDA of $218.1 million during 2018.
Additionally, QTS generated Operating FFO available to common stockholders and OP unit holders of $165.7 million during last year, an increase of 11.0% compared to Core Operating FFO available to common stockholders and OP unit holders of $149.3 million during 2018.
Operating FFO per fully diluted share was $2.63 for the year ended December 31, 2019, compared to Core Operating FFO per fully diluted share of $2.57 for the year ended December 31, 2018.
CEO Williams added: “Our focus at QTS remains on delivering consistent financial performance over both the near- and long-term while enabling the continued growth of our target hyperscale, hybrid colocation and federal customers. Through our broad footprint of cost-advantaged infrastructure, software-defined platform and leadership position in sustainability initiatives, QTS is strategically positioned to drive continued growth and stockholder value creation.”
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2020 and Mega data centres
For this year, QTS anticipates further growth in its books, with the company’s 2020 guidance assuming rental churn for the full year of between 3% and 6%.
In addition, for the full-year 2020, QTS expects to spend between $550 million and $600 million in cash capital expenditures, excluding any acquisitions.
Twenty-twenty capital expenditure guidance includes its proportionate share of cash capital expenditures associated with the unconsolidated joint venture.
Elsewhere, and in true data centre style, a financial year results report always brings with it announcements on new developments. QTS did not skip the tradition here and announced that it has commenced development of a new large data centre campus in Hillsboro, Or.
The initial development will feature construction of a 158,000 square foot data centre encompassing 85,000 square feet of leasable capacity and 27 megawatts of gross power capacity. The 92-acre site can ultimately support the construction of five data centre buildings totaling approximately 1.5 million gross square feet encompassing more than 1 million square feet of leasable capacity and more than 250 megawatts of gross power capacity.
QTS has pre-leased 100% of the first phase of development at the site to a global software-as-a-service provider representing approximately 4.5 megawatts. No further details on the client have been shared.
The company expects to formally open and commission the first phase of development in Hillsboro in mid-2020 with additional power capacity available for customers in the second half of 2020.
QTS anticipates having 100% renewable energy available for customers upon opening its Hillsboro facility in mid-2020, as part of its commitment to provide 100% renewable power across all of its data centres by 2025.
Hillsboro is host to many high-tech companies. It has become an increasingly attractive alternative destination to Silicon Valley, earning it the nickname “Silicon Forest” as it grows into a trans-Pacific hub for data centre connectivity and companies with business in Asia.
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