QTS reports financial results with a renewed focus on hyperscale customers
QTS Realty Trust, a provider of data center solutions, hybrid cloud and fully managed services, has announced its operating and financial results for the second quarter that ended June 30, 2017.
QTS' reported net income for the second quarter of 2017 is $4.6 million, a decrease of 20.6% compared to the company's net income for the second quarter of 2016 which was $5.8 million.
QTS reported an Operating FFO of $35.0 million for the second quarter of 2017, an increase of 0.5% compared to its Operating FFO of $34.9 million in the second quarter of 2016.
The company's total revenues in the second quarter of 2017 are $107.9 million, an increase of 9.3% compared to the -98/7 million generated in the second quarter of 2016.
The company's net operation income (NOI) for the second quarter of 2017 sits at $68.1 million, an increase of 6.3% compared to the second quarter of 2016.
"The second quarter represents another strong performance from QTS and we are encouraged by the trends we are seeing in our business across leasing volume, financial performance and pricing on new leases and renewals," comments Chad Williams, chairman and CEO of QTS.
"We remain focused on building strength and capacity within QTS to continue to deliver valuable solutions for larger C1-hyperscale customers while executing on the strong growth opportunity with our C2 and C3 customers enabling their diverse hybrid IT strategies."
Moreover, during the second quarter of 2017, QTS continued to redevelop of its Atlanta-Metro, Irving, Chicago, Piscataway, Fort Worth and Santa Clara leased facilities and aims to have more space ready for customers later in 2017.
The company expects to bring an additional 103,000 raised floor NRSF into service in the remaining quarters of 2017 at an aggregate cost of approximately $153 million.
The company reported that as of June 30, 2017 its total debt balance net of cash and cash equivalents sat at $1,039.5 million.
As of June 30, 2017, QTS had total available liquidity of approximately $495 million which was comprised of $452 million of available capacity under the company's unsecured revolving credit facility and approximately $43 million of cash and cash equivalents.
QTS expects 2017 year-over-year revenue growth to be at the low end of its previously provided range of 11-13%. The company says this is due to a lower than expected utility recovery revenue, which in turn, passes through directly into lower operating costs.
However, QTS says that given that the utility recovery revenue correlates directly to cost savings, as well as continued cost efficiencies in the business, it is reaffirming its 2017 adjusted EBITDA guidance of $203.0 million to $211.0 million.