DuPont Fabros Technology, Inc. Reports First Quarter 2013 Results

Revenues up 12%

Adjusted Funds from Operations per share up 23%

Second Quarter Dividend increased by 25%

07 May, 2013, 07:00 ET from DuPont Fabros Technology, Inc.

WASHINGTON, May 7, 2013 /PRNewswire/ -- DuPont Fabros Technology, Inc. (NYSE: DFT) today reported results for the quarter ended March 31, 2013. All per share results are reported on a fully diluted basis.

(Logo: http://photos.prnewswire.com/prnh/20120104/MM29780LOGO )

Highlights

  • As of March 31, 2013, the company's overall operating portfolio was 90% leased with the stabilized portfolio at 90% leased and the non-stabilized portfolio at 93% leased.
  • Quarterly Highlights:
    • Reported Funds from Operations ("FFO") of $0.40 per share representing an 18% increase over the prior year quarter.
    • Reported Adjusted FFO per share of $0.38 representing a 23% increase over the prior year quarter.
    • Increased midpoint of 2013 FFO per share guidance by $0.04.
    • Placed in service ACC6 Phase II in Ashburn, Virginia, comprising 13.0 megawatts ("MW") of critical load, 100% leased.
    • Signed one lease totaling 2.28 MW and 11,000 raised square feet.
    • Commenced six leases totaling 15.82 MW and 82,598 raised square feet.
    • Increased second quarter 2013 common stock dividend 25% to $0.25 per share.
    • Repurchased 1.6 million shares of common stock for $38 million.
    • Obtained a new $115 million five year secured loan and paid off $138.3 million secured loan.

Subsequent to the First Quarter:

    • Signed one lease totaling 1.73 MW and 10,151 raised square feet at CH1 which is now 100% leased and commenced.
    • Commenced development of ACC7 Phase I (11.89 MW) with expected completion in the second quarter of 2014. ACC7 is expected to be built in four phases totaling 41.60 MW available for use by tenants.

Hossein Fateh, President and Chief Executive Officer, said, "DFT's plan is to lease our remaining wholesale data center capacity and to develop new capacity in existing locations. Substantial progress has been achieved on each front. We have leased all remaining capacity in Chicago and broken ground on ACC7 on our high-demand Ashburn, Virginia campus. Our refinancing activity in the quarter reduced our overall cost of capital and improved our debt maturity schedule. This focused activity and confidence in leasing supports our board's decision to increase our common stock dividend by 25%."

First Quarter 2013 Results

For the quarter ended March 31, 2013, the company reported earnings of $0.12 per share compared to $0.08 per share for the first quarter of 2012. Revenues increased 12%, or $9.4 million, to $87.8 million for the first quarter of 2013 over the first quarter of 2012. The increase in revenues is primarily due to new leases commencing.

FFO for the quarter ended March 31, 2013 was $0.40 per share which includes a $0.02 per share charge related to the payoff of a secured loan, compared to $0.34 per share for the first quarter of 2012. The increase of $0.06 per share from the prior year quarter is primarily due to:

  • A positive impact of $0.09 per share from higher operating income excluding depreciation.
  • A negative impact of $0.02 per share due to the one-time write-off of deferred financing costs related to the secured loan payoff.
  • A negative impact of $0.01 per share from higher interest expense primarily due to lower capitalized interest.

Portfolio Update

During the first quarter 2013, the company signed one lease at SC1 with a lease term of 5.3 years totaling 2.28 MW and 11,000 raised square feet. This leased commenced in the second quarter and SC1 is 88% leased as of March 31, 2013.

Subsequent to the first quarter, the company signed one lease at CH1 with a weighted average lease term of 5.1 years totaling 1.73 MW and 10,151 raised square feet. A portion of the lease commenced in the second quarter and the other portion is a replacement for the 0.43 MW expiring on December 31, 2013 and is expected to commence in the first quarter of 2014.

Year to Date, the company:

  • Signed two leases with a weighted average lease term of 5.2 years totaling 4.01 MW and 21,151 raised square feet that are expected to generate approximately $3.9 million of annualized GAAP base rent revenue.
  • Commenced eight leases totaling 20.69 MW and 110,716 raised square feet.

Development Update

In May 2013, the company executed an agreement with its general contractor to build the entire shell and underground conduit at ACC7 (41.60 MW of critical load) and to fully develop the first phase of ACC7 (11.89 MW of critical load) at an estimated out of pocket cost of $155 million to $160 million. The total cost of the entire ACC7 data center is expected to range from $7.0 million per MW to $7.9 million per MW, excluding capitalized interest. Hossein Fateh commented, "ACC7 will be the first data center built using DFT's new, highly efficient design. With expected Power Usage Efficiency ("PUE") of 1.2, customers will experienced reduced energy costs and the new design is also expected to lower operating costs. With our ability to build in modular units as small as 5.9 MW of critical load, DFT can deliver on a just-in-time basis, reducing the risk of speculative development."

Balance Sheet and Liquidity

The company announced in November a twelve-month common stock repurchase program of up to $80 million. In the first quarter of 2013, the company repurchased $37.8 million or 1,623,673 shares of common stock at an average price of $23.12 per share.

On March 27, 2013, the company closed a new loan secured by its ACC3 data center totaling $115 million, and used the proceeds from this loan along with cash on hand to pay off the ACC5 loan of $138.3 million which was due to mature in December 2014. The ACC3 loan matures in March 2018 and has a lower interest rate, LIBOR plus 1.85%, than the ACC5 loan, LIBOR plus 3.00%.

As of March 31, 2013, the company had $18 million of cash available on its balance sheet and $165 million of available capacity under its revolving credit facility.

Common Dividend

The company's Board of Directors increased the quarterly common dividend in the second quarter of 2013 by 25% to $0.25 per share, an annualized rate of $1.00 per share. This is a yield of 3.9% based on the May 6, 2013 stock closing price.

Second Quarter and Full Year 2013 Guidance

The company has established an FFO guidance range of $0.45 to $0.47 per share for the second quarter of 2013. The $0.06 per share difference between the company's first quarter 2013 FFO of $0.40 per share and the midpoint of the second quarter guidance range is primarily due to:

  • A positive impact of $0.03 from higher operating income excluding depreciation.
  • A positive impact of $0.03 from lower interest expense due to first quarter one-time charge of $0.02 per share from the payoff of the ACC5 loan and a lower interest rate on the new ACC3 loan.

The company is raising and tightening its 2013 FFO guidance range to $1.82 to $1.92 per share from $1.76 to $1.90 per share. This increased the midpoint by $0.04 per share, and the 2013 updated lower end of the guidance range still assumes no additional leases being executed this year.

First Quarter 2013 Conference Call and Webcast Information

The company will host a conference call to discuss these results today, Tuesday, May 7, 2013 at 1:00 p.m. ET. To access the live call, please visit the Investor Relations section of the company's website at www.dft.com or dial 1-800-860-2442 (domestic) or 1-412-858-4600 (international). A replay will be available for seven days by dialing 1-877-344-7529 (domestic) or 1-412-317-0088 (international) using passcode 10027455. The webcast will be archived on the company's website for one year at www.dft.com on the Presentations & Webcasts page.

About DuPont Fabros Technology, Inc.

DuPont Fabros Technology, Inc. (NYSE: DFT) is a leading owner, developer, operator and manager of enterprise-class, carrier neutral, multi-tenant wholesale data centers. The Company's facilities are designed to offer highly specialized, efficient and safe computing environments in a low-cost operating model. The Company's customers outsource their mission critical applications and include national and international enterprises across numerous industries, such as technology, Internet content providers, media, communications, cloud-based, healthcare and financial services. The Company's ten data centers are located in four major U.S. markets, which total 2.5 million gross square feet and 218 megawatts of available critical load to power the servers and computing equipment of its customers. DuPont Fabros Technology, Inc., a real estate investment trust (REIT) is headquartered in Washington, DC. For more information, please visit www.dft.com.

Forward-Looking Statements

Certain statements contained in this press release may be deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The matters described in these forward-looking statements include expectations regarding future events, results and trends and are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond the company's control. The company faces many risks that could cause its actual performance to differ materially from the results contemplated by its forward-looking statements, including, without limitation, the risk that its assumptions underlying its full year and second quarter 2013 FFO guidance are not realized, the risks related to the leasing of available space to third-party tenants, including delays in executing new leases and failure to negotiate leases on terms that will enable it to achieve its expected returns, risks related to the collection of accounts and notes receivable, the risk that the company may be unable to obtain new financing on favorable terms to facilitate, among other things, future development projects, the risks commonly associated with construction and development of new facilities (including delays and/or cost increases associated with the completion of new developments), risks relating to obtaining required permits and compliance with permitting, zoning, land-use and environmental requirements, the risk that the company will not declare and pay dividends as anticipated for 2013 and the risk that the company may not be able to maintain its qualification as a REIT for federal tax purposes. The periodic reports that the company files with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2012, contain detailed descriptions of these and many other risks to which the company is subject. These reports are available on our website at www.dft.com. Because of the risks described above and other unknown risks, the company's actual results, performance or achievements may differ materially from the results, performance or achievements contemplated by its forward-looking statements. The information set forth in this news release represents management's expectations and intentions only as of the date of this press release. The company assumes no responsibility to issue updates to the contents of this press release.

 

DUPONT FABROS TECHNOLOGY, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited and in thousands except share and per share data)

Three months ended March 31,

2013

2012

Revenues:

Base rent

$ 60,483

$ 53,170

Recoveries from tenants

26,339

24,086

Other revenues

937

1,126

Total revenues

87,759

78,382

Expenses:

Property operating costs

23,512

22,363

Real estate taxes and insurance

3,641

2,171

Depreciation and amortization

23,039

21,870

General and administrative

4,550

5,236

Other expenses

772

668

Total expenses

55,514

52,308

Operating income

32,245

26,074

Interest income

37

34

Interest:

Expense incurred

(12,937)

(11,863)

Amortization of deferred financing costs

(2,618)

(887)

Net income

16,727

13,358

Net income attributable to redeemable noncontrolling interests — operating partnership

(1,973)

(1,570)

Net income attributable to controlling interests

14,754

11,788

Preferred stock dividends

(6,811)

(6,619)

Net income attributable to common shares

$ 7,943

$ 5,169

Earnings per share — basic:

Net income attributable to common shares

$ 0.12

$ 0.08

Weighted average common shares outstanding

65,089,972

62,568,547

Earnings per share — diluted:

Net income attributable to common shares

$ 0.12

$ 0.08

Weighted average common shares outstanding

65,928,717

63,548,098

Dividends declared per common share

$ 0.20

$ 0.12

 

DUPONT FABROS TECHNOLOGY, INC.

RECONCILIATIONS OF NET INCOME TO FFO AND AFFO (1)

(unaudited and in thousands except share and per share data)

Three months ended March 31,

2013

2012

Net income

$ 16,727

$ 13,358

Depreciation and amortization

23,039

21,870

Less: Non real estate depreciation and amortization

(242)

(274)

FFO

39,524

34,954

Preferred stock dividends

(6,811)

(6,619)

FFO attributable to common shares and OP units

$ 32,713

$ 28,335

Straight-line revenues, net of reserve

(4,607)

(5,023)

Amortization of lease contracts above and below market value

(598)

(979)

Compensation paid with Company common shares

1,903

2,034

Non real estate depreciation and amortization

242

274

Amortization of deferred financing costs

918

887

Write-off of deferred financing costs

1,700

Improvements to real estate

(809)

(179)

Capitalized leasing commissions

(112)

(162)

AFFO

$ 31,350

$ 25,187

FFO attributable to common shares and OP units    per share - diluted

$ 0.40

$ 0.34

AFFO per share - diluted

$ 0.38

$ 0.31

Weighted average common shares and OP units    outstanding - diluted

82,096,356

82,553,495

(1) Funds from operations, or FFO, is used by industry analysts and investors as a supplemental operating performance measure for REITs. The Company calculates FFO in accordance with the definition that was adopted by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. FFO, as defined by NAREIT, represents net income determined in accordance with GAAP, excluding extraordinary items as defined under GAAP, impairment charges on depreciable real estate assets and gains or losses from sales of previously depreciated operating real estate assets, plus specified non-cash items, such as real estate asset depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. The Company also presents FFO attributable to common shares and OP units, which is FFO excluding preferred stock dividends. FFO attributable to common shares and OP units per share is calculated on a basis consistent with net income attributable to common shares and OP units and reflects adjustments to net income for preferred stock dividends.

The Company uses FFO as a supplemental performance measure because, in excluding real estate related depreciation and amortization and gains and losses from property dispositions, it provides a performance measure that, when compared period over period, captures trends in occupancy rates, rental rates and operating expenses. The Company also believes that, as a widely recognized measure of the performance of equity REITs, FFO may be used by investors as a basis to compare the Company's operating performance with that of other REITs. However, because FFO excludes real estate related depreciation and amortization and captures neither the changes in the value of the Company's properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of the Company's properties, all of which have real economic effects and could materially impact the Company's results from operations, the utility of FFO as a measure of the Company's performance is limited.

While FFO is a relevant and widely used measure of operating performance of equity REITs, other equity REITs may use different methodologies for calculating FFO and, accordingly, FFO as disclosed by such other REITs may not be comparable to the Company's FFO. Therefore, the Company believes that in order to facilitate a clear understanding of its historical operating results, FFO should be examined in conjunction with net income as presented in the consolidated statements of operations. FFO should not be considered as an alternative to net income or to cash flow from operating activities (each as computed in accordance with GAAP) or as an indicator of the Company's liquidity, nor is it indicative of funds available to meet the Company's cash needs, including its ability to pay dividends or make distributions.

The Company also presents FFO with supplemental adjustments to arrive at Adjusted FFO ("AFFO"). AFFO is FFO attributable to common shares and OP units excluding straight-line revenue, compensation paid with Company common shares, gain or loss on derivative instruments, acquisition of service agreements, below market lease amortization net of above market lease amortization early extinguishment of debt costs, non real estate depreciation and amortization, amortization of deferred financing costs, improvements to real estate and capitalized leasing commissions. AFFO does not represent cash generated from operating activities in accordance with GAAP and therefore should not be considered an alternative to net income as an indicator of the Company's operating performance or as an alternative to cash flow provided by operations as a measure of liquidity and is not necessarily indicative of funds available to fund the Company's cash needs including the Company's ability to pay dividends. In addition, AFFO may not be comparable to similarly titled measurements employed by other companies. The Company's management uses AFFO in management reports to provide a measure of REIT operating performance that can be compared to other companies using AFFO.

 

DUPONT FABROS TECHNOLOGY, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands except share data)

March 31, 2013

(unaudited)

December 31, 2012

ASSETS

Income producing property:

Land

$ 75,956

$ 73,197

Buildings and improvements

2,412,485

2,315,499

2,488,441

2,388,696

Less: accumulated depreciation

(347,482)

(325,740)

Net income producing property

2,140,959

2,062,956

Construction in progress and land held for development

123,175

218,934

Net real estate

2,264,134

2,281,890

Cash and cash equivalents

17,670

23,578

Rents and other receivables, net

11,949

3,840

Deferred rent, net

147,724

144,829

Lease contracts above market value, net

9,980

10,255

Deferred costs, net

33,934

35,670

Prepaid expenses and other assets

39,528

30,797

Total assets

$ 2,524,919

$ 2,530,859

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Line of credit

$ 60,000

$ 18,000

Mortgage notes payable

115,000

139,600

Unsecured notes payable

550,000

550,000

Accounts payable and accrued liabilities

29,761

22,280

Construction costs payable

2,609

6,334

Accrued interest payable

14,047

2,601

Dividend and distribution payable

21,868

22,177

Lease contracts below market value, net

13,149

14,022

Prepaid rents and other liabilities

41,289

35,524

Total liabilities

847,723

810,538

Redeemable noncontrolling interests — operating partnership

386,786

453,889

Commitments and contingencies

Stockholders' equity:

Preferred stock, $.001 par value, 50,000,000 shares authorized:

Series A cumulative redeemable perpetual preferred stock,                          7,400,000 issued and outstanding at March 31, 2013 and                           December 31, 2012

185,000

185,000

Series B cumulative redeemable perpetual preferred stock,                          6,650,000 issued and outstanding at March 31, 2013 and                          December 31, 2012

166,250

166,250

Common stock, $.001 par value, 250,000,000 shares authorized,                64,645,117 shares issued and outstanding at March 31, 2013                and 63,340,929 shares issued and outstanding at December 31, 2012

65

63

Additional paid in capital

939,095

915,119

Retained earnings

Total stockholders' equity

1,290,410

1,266,432

Total liabilities and stockholders' equity

$ 2,524,919

$ 2,530,859

 

DUPONT FABROS TECHNOLOGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited and in thousands)

Three months ended March 31,

2013

2012

Cash flow from operating activities

Net income

$ 16,727

$ 13,358

Adjustments to reconcile net income to net cash provided by operating activities

Depreciation and amortization

23,039

21,870

Straight line rent, net of reserve

(4,607)

(5,023)

Amortization of deferred financing costs

918

887

Write-off of deferred financing costs

1,700

Amortization of lease contracts above and below market value

(598)

(979)

Compensation paid with Company common shares

1,903

2,034

Changes in operating assets and liabilities

Rents and other receivables

(6,360)

(3,129)

Deferred costs

(119)

(175)

Prepaid expenses and other assets

(7,173)

(3,329)

Accounts payable and accrued liabilities

6,299

727

Accrued interest payable

11,446

11,658

Prepaid rents and other liabilities

4,637

2,294

Net cash provided by operating activities

47,812

40,193

Cash flow from investing activities

Investments in real estate — development

(7,340)

(22,410)

Interest capitalized for real estate under development

(210)

(1,155)

Improvements to real estate

(809)

(179)

Additions to non-real estate property

(18)

(54)

Net cash used in investing activities

(8,377)

(23,798)

Cash flow from financing activities

Issuance of preferred stock, net of offering costs

62,696

Line of credit:

Proceeds

62,000

15,000

Repayments

(20,000)

(35,000)

Mortgage notes payable:

Proceeds

115,000

Lump sum payoffs

(138,300)

Repayments

(1,300)

(1,300)

Exercises of stock options

429

Payments of financing costs

(1,715)

(2,015)

Common stock repurchases

(37,792)

Dividends and distributions:

Common shares

(12,668)

(7,550)

Preferred shares

(6,811)

(5,572)

Redeemable noncontrolling interests — operating partnership

(3,757)

(2,287)

Net cash (used in) provided by financing activities

(45,343)

24,401

Net increase (decrease) in cash and cash equivalents

(5,908)

40,796

Cash and cash equivalents, beginning

23,578

14,402

Cash and cash equivalents, ending

$ 17,670

$ 55,198

Supplemental information:

Cash paid for interest

$ 1,700

$ 1,361

Deferred financing costs capitalized for real estate under development

$ 15

$ 76

Construction costs payable capitalized for real estate under development

$ 2,609

$ 7,299

Redemption of operating partnership units

$ 68,900

$ 2,400

Adjustments to redeemable noncontrolling interests — operating partnership

$ 3,011

$ 5,107

 

DUPONT FABROS TECHNOLOGY, INC.

Operating Properties

As of March 31, 2013

Property

Property Location

Year Built/ Renovated

Gross Building Area (2)

Raised Square Feet (2)

Critical Load MW (3)

% Leased (4)

%

Commenced (5)

Stabilized (1)

ACC2

Ashburn, VA

2001/2005

87,000

53,000

10.4

100%

100%

ACC3

Ashburn, VA

2001/2006

147,000

80,000

13.9

100%

100%

ACC4

Ashburn, VA

2007

347,000

172,000

36.4

100%

100%

ACC5

Ashburn, VA

2009-2010

360,000

176,000

36.4

98%

98%

ACC6 Phase I

Ashburn, VA

2011

131,000

65,000

13.0

100%

100%

CH1 Phase I

Elk Grove Village, IL

2008

285,000

122,000

18.2

100%

100%

CH1 Phase II (6)

Elk Grove Village, IL

2012

200,000

109,000

18.2

93%

86%

NJ1 Phase I

Piscataway, NJ

2010

180,000

88,000

18.2

39%

39%

VA3

Reston, VA

2003

256,000

147,000

13.0

51%

51%

VA4

Bristow, VA

2005

230,000

90,000

9.6

100%

100%

Subtotal — stabilized

2,223,000

1,102,000

187.3

90%

89%

Completed not Stabilized

ACC6 Phase II

Ashburn, VA

2013

131,000

65,000

13.0

100%

67%

SC1 Phase I (7)

Santa Clara, CA

2011

180,000

88,000

18.2

88%

69%

Subtotal — non-stabilized

311,000

153,000

31.2

93%

68%

Total Operating Properties

2,534,000

1,255,000

218.5

90%

86%

(1) Stabilized operating properties are either 85% or more leased and commenced or have been in service for 24 months or greater.

(2) Gross building area is the entire building area, including raised square footage (the portion of gross building area where the tenants' computer servers are located), tenant common areas, areas controlled by the Company (such as the mechanical, telecommunications and utility rooms) and, in some facilities, individual office and storage space leased on an as available basis to the tenants.

(3) Critical load (also referred to as IT load or load used by tenants' servers or related equipment) is the power available for exclusive use by tenants expressed in terms of megawatt, or MW, or kilowatt, or kW (1 MW is equal to 1,000 kW).

(4) Percentage leased is expressed as a percentage of critical load that is subject to an executed lease totaling 196.9 MW. Leases executed as of March 31, 2013 represent $245 million of base rent on a GAAP basis and cash basis over the next twelve months.

(5) Percentage commenced is expressed as a percentage of critical load where the lease has commenced under generally accepted accounting principles.

(6) As of May 6, 2013 CH1 Phase II is 100% leased and commenced.

(7) As of May 6, 2013, SC1 Phase I is 81% commenced.

 

DUPONT FABROS TECHNOLOGY, INC.

Lease Expirations

As of March 31, 2013

Year of Lease Expiration

Number of Leases Expiring (1)

Raised Square Feet Expiring (in thousands) (2)

% of Leased Raised Square Feet

Total kW of Expiring Commenced Leases (2)

% of Leased kW

% of Annualized Base Rent (3)

2013 (4)

2

8

0.8%

1,567

0.8%

1.0%

2014

6

35

3.3%

6,287

3.3%

3.8%

2015

4

70

6.6%

13,812

7.4%

6.9%

2016

4

32

3.0%

4,686

2.5%

2.5%

2017

11

80

7.6%

14,206

7.6%

7.1%

2018

13

141

13.3%

28,411

15.1%

15.0%

2019

11

168

15.9%

31,035

16.5%

15.4%

2020

9

96

9.1%

15,196

8.1%

8.5%

2021

7

131

12.4%

24,269

12.9%

13.6%

2022

6

75

7.1%

12,812

6.8%

7.5%

After 2022

15

222

20.9%

35,567

19.0%

18.7%

Total

88

1,058

100%

187,848

100%

100%

(1) Represents 33 tenants with 88 lease expiration dates. Top four tenants represent 60% of annualized base rent.

(2) Raised square footage is that portion of gross building area where the tenants locate their computer servers. One MW is equal to 1,000 kW.

(3) Annualized base rent represents the monthly contractual base rent (defined as cash base rent before abatements) multiplied by 12 for commenced leases totaling 187.8 MW as of March 31, 2013.

(4) One lease has a rolling option to terminate on six months' notice and has a scheduled maturity on September 30, 2013 with no notice received as of today. The second lease will expire on December 31, 2013, representing 2,800 raised square feet, 430 kW of critical load and 0.2% of annualized base rent as notice was provided. This space has been re-leased with the new lease expected to commence on January 1, 2014 and expire in 2019.

DUPONT FABROS TECHNOLOGY, INC.

Development Projects

As of March 31, 2013

($ in thousands)

Property

Property Location

Gross Building Area (1)

Raised Square Feet (2)

Critical Load MW (3)

Construction in Progress & Land Held for Development (4)

Future Development Projects/Phases

SC1 Phase II

Santa Clara, CA

180,000

88,000

18.2

61,672

NJ1 Phase II

Piscataway, NJ

180,000

88,000

18.2

39,212

360,000

176,000

36.4

100,884

Land Held for Development

ACC7 Phases I to IV (5)

Ashburn, VA

405,000

237,000

41.6

12,836

ACC8

Ashburn, VA

100,000

50,000

10.4

3,658

SC2 Phase I/II

Santa Clara, CA

200,000

125,000

26.0

5,797

705,000

412,000

78.0

22,291

Total

1,065,000

588,000

114.4

$ 123,175

(1) Gross building area is the entire building area, including raised square footage (the portion of gross building area where the tenants' computer servers are located), tenant common areas, areas controlled by the Company (such as the mechanical, telecommunications and utility rooms) and, in some facilities, individual office and storage space leased on an as available basis to the tenants.

(2) Raised square footage is that portion of gross building area where the tenants locate their computer servers.

(3) Critical load (also referred to as IT load or load used by tenants' servers or related equipment) is the power available for exclusive use by tenants expressed in terms of MW or kW (1 MW is equal to 1,000 kW).

(4) Amount capitalized as of March 31, 2013. Future Phase II development projects include only land, shell, underground work and capitalized interest through Phase I opening.

(5) In May 2013, the company commenced development of Phase I of ACC7 totaling 11.89 MW of critical load.

DUPONT FABROS TECHNOLOGY, INC.

Debt Summary as of March 31, 2013

($ in thousands)

Amounts

% of Total

Rates

Maturities (years)

Secured

$ 115,000

16 %

2.1 %

5.0

Unsecured

610,000

84 %

7.9 %

3.9

Total

$ 725,000

100 %

6.9 %

4.1

Fixed Rate Debt:

Unsecured Notes

$ 550,000

76 %

8.5 %

4.0

Fixed Rate Debt

550,000

76 %

8.5 %

4.0

Floating Rate Debt:

Unsecured Credit Facility

60,000

8 %

2.1 %

3.0

ACC3 Term Loan

115,000

16 %

2.1 %

5.0

Floating Rate Debt

175,000

24 %

2.1 %

4.3

Total

$ 725,000

100 %

6.9 %

4.1

Note: The Company capitalized interest and deferred financing cost amortization of $0.2 million during the three months ended March 31, 2013.

 

Debt Maturity as of March 31, 2013

($ in thousands)

Year

Fixed Rate

Floating Rate

Total

% of Total

Rates

2013

$ —

$ —

$ —

2014

2015

125,000 (1)

125,000

17.2 %

8.5 %

2016

125,000 (1)

63,750(2)(3)

188,750

26.0 %

6.3 %

2017

300,000 (1)

8,750(3)

308,750

42.7 %

8.3 %

2018

102,500(3)

102,500

14.1 %

2.1 %

Total

$ 550,000

$ 175,000

$ 725,000

100 %

6.9 %

(1) The Unsecured Notes have mandatory amortization payments due December 15 of each respective year.

(2) The Unsecured Credit Facility matures on March 21, 2016 with a one-year extension option.

(3) The ACC3 Term Loan matures on March 27, 2018 with no extension option. Quarterly principal payments of $1.25 million begin on April 1, 2016, increase to $2.5 million on April 1, 2017 and continue through maturity.

DUPONT FABROS TECHNOLOGY, INC.

Selected Unsecured Debt Metrics

3/31/13

12/31/12

Interest Coverage Ratio (not less than 2.0)

4.2

4.0

Total Debt to Gross Asset Value (not to exceed 60%)

25.3%

24.9%

Secured Debt to Total Assets (not to exceed 40%)

4.0%

4.9%

Total Unsecured Assets to Unsecured Debt (not less than 150%)

440.0%

334.3%

These selected metrics relate to DuPont Fabros Technology, LP's outstanding unsecured debt. DuPont Fabros Technology, Inc. is the general partner of DuPont Fabros Technology, LP.

Capital Structure as of March 31, 2013

(in thousands except per share data)

Line of Credit

$ 60,000

Mortgage Notes Payable

115,000

Unsecured Notes

550,000

Total Debt

725,000

23.9 %

Common Shares

80 %

64,645

Operating Partnership ("OP") Units

20 %

15,937

Total Shares and Units

100 %

80,582

Common Share Price at March 31, 2013

$ 24.27

Common Share and OP Unit Capitalization

$ 1,955,725

Preferred Stock ($25 per share liquidation preference)

351,250

Total Equity

2,306,975

76.1 %

Total Market Capitalization

$ 3,031,975

100.0 %

 

DUPONT FABROS TECHNOLOGY, INC.

Common Share and OP Unit

Weighted Average Amounts Outstanding

Q1 2013

Q1 2012

Weighted Average Amounts

Outstanding for EPS Purposes:

Common Shares — basic

65,089,972

62,568,547

Shares issued from assumed conversion of:

- Restricted Shares

99,720

206,609

- Stock Options

739,025

772,942

- Performance Units

Total Common Shares - diluted

65,928,717

63,548,098

Weighted Average Amounts Outstanding for FFO and AFFO Purposes:

Common Shares — basic

65,089,972

62,568,547

OP Units — basic

16,167,639

19,005,397

Total Common Shares and OP Units

81,257,611

81,573,944

Shares and OP Units issued from

assumed conversion of:

- Restricted Shares

99,720

206,609

- Stock Options

739,025

772,942

- Performance Units

Total Common Shares and Units - diluted

82,096,356

82,553,495

Period Ending Amounts Outstanding:

Common Shares

64,645,117

OP Units

15,936,806

Total Common Shares and Units

80,581,923

 

DUPONT FABROS TECHNOLOGY, INC.

2013 Guidance

The earnings guidance/projections provided below are based on current expectations and are forward-looking.

Expected Q2 2013

per share

Expected 2013

per share

Net income per common share and unit — diluted

$0.16 to $0.18

$0.66 to $0.76

Depreciation and amortization, net

0.29

1.16

FFO per share — diluted (1)

$0.45 to $0.47

$1.82 to $1.92

 

2013 Debt Assumptions

Weighted average debt outstanding

$740.0 million

Weighted average interest rate

7.00%

Total interest costs

$51.8 million

Amortization of deferred financing costs (2)

3.2 million

Interest expense capitalized (3)

(1.7) million

Deferred financing costs amortization capitalized (3)

(0.1) million

Total interest expense after capitalization

$53.2 million

2013 Other Guidance Assumptions

Total revenues

$365 to $380 million

Base rent (included in total revenues)

$245 to $255 million

Straight-line revenues (included in base rent)

$7 to $12 million

General and administrative expense

$18 million

Investments in real estate — development (3)

$65 million

Improvements to real estate excluding development

$6 million

Preferred stock dividends

$27 million

Annualized common stock dividend

$1.00 per share

Weighted average common shares and OP units - diluted

81 million

Common share repurchase

$38 million

Acquisition of income producing properties

No amounts budgeted

 

(1) For information regarding FFO, see "Reconciliations of Net Income to FFO and AFFO" on page 6 of this earnings release.

(2) Excludes $1.7 million write-off of deferred financing costs related to the payoff of a secured loan.

(3) Represents development of ACC7.

SOURCE DuPont Fabros Technology, Inc.



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