Trending Stock Update: CyrusOne Inc. (NASDAQ: CONE)

On Friday, CyrusOne Inc. (NASDAQ: CONE) stock concluded the recent trade at $62.27 with upbeat/downbeat trend move of +0.73% .The Company has total market value of 6.455B. The company has got a 52-week exceptional price of $69.01 and reached a 52-week lowest of the share price at $43.49. After opening the first trading session at $61.97, it registered a day’s high of $62.90 and touched a day’s low of $61.92.

CyrusOne Inc. (CONE), a premier global data center REIT, recently reported second quarter 2018 earnings.

Second Quarter 2018 Financial Results

Revenue was $196.9M for the second quarter, contrast to $166.9M for the same period in 2017, an raise of 18%. The raise in revenue was driven primarily by a 28% raise in occupied CSF and additional interconnection services.

Net income was $105.9M for the second quarter, contrast to net loss of $0.8M in the same period in 2017. Net income for the second quarter included a $102.7M unrealized gain on the Company’s equity investment in GDS Holdings Limited (“GDS”), a leading data center provider in China, Because of an raise in GDS’s share price during the quarter. Net income per diluted ordinary share¹ was $1.06 in the second quarter of 2018, contrast to net loss of $(0.01) per diluted ordinary share in the same period in 2017.

Net operating income (NOI)² was $128.0M for the second quarter, contrast to $107.3M in the same period in 2017, an raise of 19%. Adjusted EBITDA³ was $110.6M for the second quarter, contrast to $90.8M in the same period in 2017, an raise of 22%.

Normalized Funds From Operations (Normalized FFO)⁴ was $80.7M for the second quarter, contrast to $67.9M in the same period in 2017, an raise of 19%. Normalized FFO per diluted ordinary share was $0.81 in the second quarter of 2018, an raise of 5% over second quarter 2017.

Leasing Activity

CyrusOne leased about 52 MW of power and 305,000 CSF in the second quarter, representing $5.5M in monthly recurring rent, inclusive of the monthly impact of installation charges, or about $65.4M in annualized GAAP revenue⁵, not including estimates for pass-through power. The weighted average lease term of the new leases, based on square footage, is 143 months (11.9 years), and the weighted average remaining lease term of CyrusOne’s portfolio is 59 months (taking into account the impact of the backlog), the longest in the Company’s history. Recurring rent churn⁶ for the second quarter was 1.1%, contrast to 0.8% for the same period in 2017.

Portfolio Development and CSF Leased

In the second quarter, the Company completed construction on 27,000 CSF and 18 MW of power capacity across three projects in San Antonio, Northern Virginia, and Phoenix. CSF leased⁷ as of the end of the second quarter was 92% for stabilized properties⁸ and 88% overall. In addition, the Company has development projects underway in Northern Virginia, Dallas, the New York Metro area, Phoenix, Chicago and San Antonio that are predictable to add about 401,000 CSF and 86 MW of power capacity.

Balance Sheet and Liquidity

As of June 30, 2018, the Company had gross assets⁹ totaling about $5.5B, an raise of about 23% over gross assets as of June 30, 2017. CyrusOne had $2.20B of long-term debt¹⁰, cash and cash equivalents of $116.2M, and $1.7B accessible under its unsecured revolving credit facility as of June 30, 2018. Net debt¹⁰ was $2.10B as of June 30, 2018, representing about 27% of the Company’s total enterprise value as of June 30, 2018 of $7.9B, or 4.7x Adjusted EBITDA for the last quarter annualized. Accessible liquidity¹¹ was $2.11B as of June 30, 2018.

Dividend

On May 2, 2018, the Company reported a dividend of $0.46 per share of ordinary stock for the second quarter of 2018. The dividend was paid on July 13, 2018, to stockholders of record at the close of business on June 29, 2018.

CONE stock price showed strong performance of 5.54% in last seven days, switched down -8.06% in last thirty days and it rose 0.57% in last one year. It has 103.82 million of outstanding shares and its shares float measured at 103.61.