DuPont Fabros Technology, Inc. Reports Second Quarter 2013 Results Revenues up 11%

Adjusted Funds from Operations per share up 40%

WASHINGTON, July 25, 2013 /PRNewswire/ -- DuPont Fabros Technology, Inc. (NYSE: DFT) today reported results for the quarter ended June 30, 2013.  All per share results are reported on a fully diluted basis.

Highlights

  • As of June 30, 2013, the company's overall operating portfolio was 91% leased with the stabilized portfolio at 90% leased and the non-stabilized portfolio at 93% leased.
  • Quarterly Highlights:
    • Reported Funds from Operations ("FFO") of $0.47 per share representing a 27% increase over the prior year quarter. 
    • Reported Adjusted FFO per share of $0.42 representing a 40% increase over the prior year quarter. 
    • Commenced three leases totaling 4.88 megawatts ("MW") and 28,118 raised square feet.
    • Increased revolving credit facility to $400 million from $225 million through exercise of accordion.
    • As reported last quarter:
      • Signed one lease totaling 1.73 MW of critical load 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. 
      • Increased second quarter 2013 common stock dividend 25% to $0.25 per share. 
  • Subsequent to the Second Quarter:
    • Renewed one lease for five years totaling 1.14 MW and 5,300 raised square feet. 

Hossein Fateh, President and Chief Executive Officer, said, "DFT continues to focus on the plan to lease our remaining wholesale data center capacity and to develop new capacity in existing locations.  We are optimistic in our ability to lease our available space based on expected data center demand."

Second Quarter 2013 Results

For the quarter ended June 30, 2013, the company reported earnings of $0.18 per share compared to $0.11 per share for the second quarter of 2012, an increase of 64%.  Revenues increased 11%, or $8.9 million, to $91.6 million for the second quarter of 2013 over the second quarter of 2012.  The increase in revenues is primarily due to new leases commencing.

FFO for the quarter ended June 30, 2013 was $0.47 per share compared to $0.37 per share for the second quarter of 2012.  The increase of $0.10 per share from the prior year quarter is due to higher operating income excluding depreciation.

First Half 2013 Results

For the six months ended June 30, 2013, the company reported earnings of $0.30 per share compared to $0.19 per share for the first half of 2012, an increase of 58%.  Revenues increased 11%, or $18.3 million, to $179.3 million for the first six months of 2013 over the year ago period.  The increase in revenues is primarily due to new leases commencing.

FFO for the six months ended June 30, 2013 was $0.87 per share, compared to $0.72 per share for the first half of 2012.  The increase of $0.15 per share from the year ago period is primarily due to:

  • A positive impact of $0.18 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 a secured loan payoff in the first quarter of 2013.
  • A negative impact of $0.01 per share from higher interest expense primarily due to lower capitalized interest. 

Portfolio Update

During the second quarter, the company signed one lease at CH1 with a 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 nine leases totaling 20.69 MW and 110,716 raised square feet. 
  • Renewed one lease at ACC4 for five years totaling 1.14 MW and 5,300 raised square feet.

Development Update

In May 2013, the company executed an agreement with its general contractor to build the entire shell and portions of the 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).  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. ACC7 will be the first data center built using the company's new design.  Expected Power Usage Efficiency ("PUE") is 1.2 which will result in reduced energy costs for customers and the new design is also expected to lower operating costs.  The company can build in modular units as small as 5.9 MW of critical load, allowing delivery on a just-in-time basis, reducing the risk of speculative development.

Balance Sheet and Liquidity

The company announced in November 2012 a twelve-month common stock repurchase program of up to $80 million.  In the second quarter of 2013, the company did not repurchase any shares.  Under this program the company has repurchased $37.8 million or 1,632,673 shares of common stock at an average price of $23.12 per share.

On June 12, 2013, the company exercised the accordion on its revolving credit facility increasing the facility from $225 million to $400 million.  A new accordion was put into place to provide the company with the option to increase the total commitment under the facility to $600 million, if one or more lenders commit to being a lender for the additional amount and certain other customary conditions are met.

As of June 30, 2013, the company had $14 million of cash available on its balance sheet and $340 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. 

Third Quarter and Full Year 2013 Guidance

The company has established an FFO guidance range of $0.47 to $0.49 per share for the third quarter of 2013. 

The company's 2013 FFO guidance range remains unchanged at $1.82 to $1.92 per share.  The 2013 lower end of the guidance range still assumes no additional leases will be executed this year.

Second Quarter 2013 Conference Call and Webcast Information

The company will host a conference call to discuss these results today, Thursday, July 25, 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 10030785.  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 third 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 and its quarterly report on Form 10-Q for the quarter ended March 31, 2013, 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 June 30,


Six months ended June 30,


2013


2012


2013


2012









Revenues:








Base rent

$

61,710



$

55,773



$

122,193



$

108,943


Recoveries from tenants

29,047



25,728



55,386



49,814


Other revenues

807



1,157



1,744



2,283


    Total revenues

91,564



82,658



179,323



161,040


Expenses:








Property operating costs

24,767



23,473



48,279



45,836


Real estate taxes and insurance

3,673



2,413



7,314



4,584


Depreciation and amortization

23,196



22,484



46,235



44,354


General and administrative

4,332



4,505



8,882



9,741


Other expenses

585



744



1,357



1,412


    Total expenses

56,553



53,619



112,067



105,927


Operating income

35,011



29,039



67,256



55,113


Interest income

16



45



53



79


Interest:








    Expense incurred

(12,505)



(12,674)



(25,442)



(24,537)


        Amortization of deferred financing costs

(775)



(916)



(3,393)



(1,803)


Net income

21,747



15,494



38,474



28,852


Net income attributable to redeemable noncontrolling interests – operating partnership

(2,965)



(2,006)



(4,938)



(3,576)


Net income attributable to controlling interests

18,782



13,488



33,536



25,276


Preferred stock dividends

(6,811)



(6,811)



(13,622)



(13,430)


Net income attributable to common shares

$

11,971



$

6,677



$

19,914



$

11,846


Earnings per share – basic:








Net income attributable to common shares

$

0.19



$

0.11



$

0.31



$

0.19


Weighted average common shares outstanding

64,380,566



62,897,982



64,733,309



62,733,265


Earnings per share – diluted:








Net income attributable to common shares

$

0.18



$

0.11



$

0.30



$

0.19


Weighted average common shares outstanding

65,188,907



63,749,724



65,556,852



63,648,912


Dividends declared per common share

$

0.25



$

0.15



$

0.45



$

0.27


 

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 June 30,


Six months ended June 30,


2013


2012


2013


2012

Net income

$

21,747



$

15,494



$

38,474



$

28,852


Depreciation and amortization

23,196



22,484



46,235



44,354


Less:  Non real estate depreciation and amortization

(229)



(260)



(471)



(534)


FFO

44,714



37,718



84,238



72,672


Preferred stock dividends

(6,811)



(6,811)



(13,622)



(13,430)


FFO attributable to common shares and OP units

$

37,903



$

30,907



$

70,616



$

59,242


Straight-line revenues, net of reserve

(2,047)



(6,203)



(6,654)



(11,226)


Amortization of lease contracts above and below market value

(597)



(853)



(1,195)



(1,832)


Compensation paid with Company common shares

1,612



1,639



3,515



3,673


Non real estate depreciation and amortization

229



260



471



534


Amortization of deferred financing costs

775



916



1,693



1,803


Write-off of deferred financing costs





1,700




Improvements to real estate

(3,548)



(1,498)



(4,357)



(1,677)


Capitalized leasing commissions

(56)



(537)



(168)



(699)


AFFO

$

34,271



$

24,631



$

65,621



$

49,818


FFO attributable to common shares and OP units

per share - diluted

$

0.47



$

0.37



$

0.87



$

0.72


AFFO per share - diluted

$

0.42



$

0.30



$

0.80



$

0.60


Weighted average common shares and OP units outstanding - diluted

81,119,817



82,623,517



81,605,473



82,588,508



(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)



June 30,

2013


December 31,
2012


(unaudited)



ASSETS




Income producing property:




Land

$

75,956



$

73,197


Buildings and improvements

2,419,359



2,315,499



2,495,315



2,388,696


Less: accumulated depreciation

(369,420)



(325,740)


Net income producing property

2,125,895



2,062,956


Construction in progress and land held for development

135,950



218,934


Net real estate

2,261,845



2,281,890


Cash and cash equivalents

14,373



23,578


Rents and other receivables, net

8,808



3,840


Deferred rent, net

149,771



144,829


Lease contracts above market value, net

9,704



10,255


Deferred costs, net

33,628



35,670


Prepaid expenses and other assets

42,300



30,797


Total assets

$

2,520,429



$

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

24,416



22,280


Construction costs payable

5,762



6,334


Accrued interest payable

2,347



2,601


Dividend and distribution payable

25,901



22,177


Lease contracts below market value, net

12,276



14,022


Prepaid rents and other liabilities

50,770



35,524


Total liabilities

846,472



810,538


Redeemable noncontrolling interests – operating partnership

383,877



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 June 30,

    2013 and December 31, 2012

185,000



185,000


    Series B cumulative redeemable perpetual preferred 

    stock, 6,650,000 issued and outstanding at June 30, 

    2013 and December 31, 2012

166,250



166,250


Common stock, $.001 par value, 250,000,000 shares 

 authorized, 64,700,976 shares issued and outstanding at

June 30, 2013 and 63,340,929 shares issued and outstanding

at December 31, 2012

65



63


Additional paid in capital

938,765



915,119


Retained earnings




Total stockholders' equity

1,290,080



1,266,432


Total liabilities and stockholders' equity

$

2,520,429



$

2,530,859


 

DUPONT FABROS TECHNOLOGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited and in thousands)



Six months ended June 30,


2013


2012

Cash flow from operating activities




Net income

$

38,474



$

28,852


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




Depreciation and amortization

46,235



44,354


Straight line rent, net of reserve

(6,654)



(11,226)


Amortization of deferred financing costs

1,693



1,803


Write-off of deferred financing costs

1,700




Amortization of lease contracts above and below market value

(1,195)



(1,832)


Compensation paid with Company common shares

3,515



3,673


Changes in operating assets and liabilities




    Rents and other receivables

(3,219)



(566)


    Deferred costs

(205)



(787)


    Prepaid expenses and other assets

(10,650)



(3,583)


    Accounts payable and accrued liabilities

2,260



(2,045)


    Accrued interest payable

(254)



56


    Prepaid rents and other liabilities

14,087



(110)


Net cash provided by operating activities

85,787



58,589


Cash flow from investing activities




Investments in real estate – development

(20,516)



(35,752)


Interest capitalized for real estate under development

(504)



(1,533)


Improvements to real estate

(4,357)



(1,677)


Additions to non-real estate property

(24)



(55)


Net cash used in investing activities

(25,401)



(39,017)


Cash flow from financing activities




Issuance of preferred stock, net of offering costs



62,685


Line of credit:




Proceeds

72,000



15,000


Repayments

(30,000)



(35,000)


Mortgage notes payable:




Proceeds

115,000




Lump sum payoffs

(138,300)




Repayments

(1,300)



(2,600)


Exercises of stock options



868


Payments of financing costs

(3,036)



(2,081)


Common stock repurchases

(37,792)




Dividends and distributions:




Common shares

(25,597)



(15,122)


Preferred shares

(13,622)



(12,384)


Redeemable noncontrolling interests – operating partnership

(6,944)



(4,563)


Net cash (used in) provided by financing activities

(69,591)



6,803


Net (decrease) increase in cash and cash equivalents

(9,205)



26,375


Cash and cash equivalents, beginning

23,578



14,402


Cash and cash equivalents, ending

$

14,373



$

40,777


Supplemental information:




Cash paid for interest

$

26,200



$

26,014


Deferred financing costs capitalized for real estate under development

$

34



$

97


Construction costs payable capitalized for real estate under development

$

5,762



$

14,048


Redemption of operating partnership units

$

69,900



$

5,700


Adjustments to redeemable noncontrolling interests - operating partnership

$

2,111



$

83,333


 

DUPONT FABROS TECHNOLOGY, INC.

 

Operating Properties

As of June 30, 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


Elk Grove Village, IL


2012


200,000



109,000



18.2



100

%


100

%

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

%


90

%

Completed not Stabilized













ACC6 Phase II


Ashburn, VA


2013


131,000



65,000



13.0



100

%


67

%

SC1 Phase I


Santa Clara, CA


2011


180,000



88,000



18.2



88

%


81

%

Subtotal – non-stabilized




311,000



153,000



31.2



93

%


75

%

Total Operating Properties




2,534,000



1,255,000



218.5



91

%


88

%


(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 198.2 MW. Leases executed as of June 30, 2013 represent $250 million of base rent on a GAAP basis and $251 million of base rent on a 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.

 

DUPONT FABROS TECHNOLOGY, INC.

 

Lease Expirations

As of June 30, 2013


The following table sets forth a summary schedule of lease expirations of the operating properties for each of the ten calendar years beginning with 2013. The information set forth in the table below assumes that tenants exercise no renewal options and takes into account tenants' early termination options.


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



0.7

%


1,567



0.8

%


0.9

%

2014


6



35



3.2

%


6,287



3.3

%


3.7

%

2015


4



70



6.5

%


13,812



7.2

%


6.7

%

2016


4



32



2.9

%


4,686



2.4

%


2.5

%

2017


11



80



7.4

%


14,206



7.4

%


7.0

%

2018


16



168



15.5

%


33,286



17.3

%


16.6

%

2019


11



168



15.5

%


31,035



16.1

%


15.1

%

2020


9



96



8.8

%


15,196



7.9

%


8.3

%

2021


7



131



12.1

%


24,269



12.6

%


13.3

%

2022


6



75



6.9

%


12,812



6.6

%


7.4

%

After 2022


15



222



20.5

%


35,567



18.4

%


18.5

%

Total


91



1,085



100

%


192,723



100

%


100

%


(1) Represents 33 tenants with 91 lease expiration dates. Top four tenants represent 61% 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 192.7 MW as of June 30, 2013.

(4) One lease, representing 5,300 raised square feet, 1,137 kW of critical load and 0.7% of annualized base rent, was renewed in July 2013 for five years. 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 June 30, 2013

($ in thousands)


Property


Property Location


Gross

Building

Area (1)


Raised

Square

Feet (2)


Critical

Load

MW (3)


Estimated

Total Cost (4)


Construction

in Progress &

Land Held for

Development (5)














Current Development Projects











ACC7 Phase I


Ashburn, VA


126,000



70,000



11.9



$85,000 - $90,000


$

7,296















Future Development Projects/Phases











ACC7 Phases II to IV


Ashburn, VA


320,000



176,000



29.7



$78,000 - $82,000


18,221


SC1 Phase II


Santa Clara, CA


180,000



88,000



18.2





61,834


NJ1 Phase II


Piscataway, NJ


180,000



88,000



18.2





39,212






680,000



352,000



66.1





119,267


Land Held for Development











ACC8


Ashburn, VA


100,000



50,000



10.4





3,659


SC2 Phase I/II


Santa Clara, CA


200,000



125,000



26.0





5,728






300,000



175,000



36.4





9,387


Total




1,106,000



597,000



114.4





$

135,950



(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. ACC7 will be built without a raised floor and the above represents computer room square footage.

(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) Current development projects include land, capitalization for construction and development and capitalized operating carrying costs, as applicable, upon completion. Capitalized interest is excluded. Future development projects / phases include, land, shell and underground work through Phase I opening only.

(5) Amount capitalized as of June 30, 2013. Future development projects / phases include only land, shell, underground work and capitalized interest through Phase I opening.

 

DUPONT FABROS TECHNOLOGY, INC.

 

Debt Summary as of June 30, 2013

($ in thousands)



June 30, 2013



Amounts


% of Total


Rates


Maturities

(years)

Secured

$

115,000



16

%


2.0

%


4.7


Unsecured

610,000



84

%


7.9

%


3.7


    Total

$

725,000



100

%


6.9

%


3.8


Fixed Rate Debt:








Unsecured Notes

$

550,000



76

%


8.5

%


3.8


    Fixed Rate Debt

550,000



76

%


8.5

%


3.8


Floating Rate Debt:








Unsecured Credit Facility

60,000



8

%


2.0

%


2.7


ACC3 Term Loan

115,000



16

%


2.0

%


4.7


    Floating Rate Debt

175,000



24

%


2.0

%


4.1


    Total

$

725,000



100

%


6.9

%


3.8



Note: The Company capitalized interest and deferred financing cost amortization of $0.3 million and $0.5 million during the three and six months ended June 30, 2013, respectively.

 

Debt Maturity as of June 30, 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

%


2.0

%

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



6/30/13


12/31/12

Interest Coverage Ratio (not less than 2.0)

4.3


4.0





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

25.2%


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%)

442.1%


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 June 30, 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



24.0

%

Common Shares

80

%


64,701








Operating Partnership ("OP") Units

20

%


15,896








Total Shares and Units

100

%


80,597








Common Share Price at June 30, 2013



$

24.15








Common Share and OP Unit Capitalization





$

1,946,418






Preferred Stock ($25 per share liquidation preference)





351,250






Total Equity







2,297,668



76.0

%

Total Market Capitalization







$

3,022,668



100.0

%

 

DUPONT FABROS TECHNOLOGY, INC.

 

Common Share and OP Unit

Weighted Average Amounts Outstanding



Q2 2013


Q2 2012


YTD Q2

2013


YTD Q2

2012

Weighted Average Amounts Outstanding for EPS Purposes:
















Common Shares - basic

64,380,566



62,897,982



64,733,309



62,733,265


Shares issued from assumed conversion of:








- Restricted Shares

51,954



70,030



75,837



138,320


- Stock Options

756,387



781,712



747,706



777,327


- Performance Units








Total Common Shares - diluted

65,188,907



63,749,724



65,556,852



63,648,912










Weighted Average Amounts Outstanding for FFO and AFFO Purposes:
















Common Shares - basic

64,380,566



62,897,982



64,733,309



62,733,265


OP Units - basic

15,930,910



18,873,793



16,048,621



18,939,596


Total Common Shares and OP Units

80,311,476



81,771,775



80,781,930



81,672,861


Shares and OP Units issued from








assumed conversion of:








- Restricted Shares

51,954



70,030



75,837



138,320


- Stock Options

756,387



781,712



747,706



777,327


- Performance Units








Total Common Shares and Units - diluted

81,119,817



82,623,517



81,605,473



82,588,508










Period Ending Amounts Outstanding:








Common Shares

64,700,976








OP Units

15,895,537








Total Common Shares and Units

80,596,513








 

DUPONT FABROS TECHNOLOGY, INC.


2013 Guidance

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



Expected Q3 2013

per share


Expected 2013

per share (1)

Net income per common share and unit - diluted

   $0.18 to $0.20


$0.66 to $0.76

Depreciation and amortization, net

0.29


1.16





FFO per share - diluted (2)

   $0.47 to $0.49


  $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 (3)

3.2 million

      Interest expense capitalized

(1.9) million

      Deferred financing costs amortization capitalized (4)

(0.1) million

Total interest expense after capitalization

$53.0 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 (4)

$80 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) Excludes contemplated refinancing of $550 million unsecured notes. If refinanced in December 2013, approximately $0.37 per share charge to earnings per share and FFO will be recorded. This includes approximately $23.4 million redemption fee (4.25% of principal) and $6.3 million of unamortized deferred financing costs.

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

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

(4) Represents cash spend expected in 2013 for the ACC7 development.

 

 

 

SOURCE DuPont Fabros Technology, Inc.



RELATED LINKS
http://www.dft.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.