CoreSite Realty (COR) Misses Q4 EPS by 3c, Slight Beat on Revenues; Offers FY18 EPS Mid-Point Outlook Above Consensus

CoreSite Realty (NYSE: COR) reported Q4 EPS of $0.44, $0.03 worse than the analyst estimate of $0.47. Revenue for the quarter came in at $125.9 million versus the consensus estimate of $125.81 million.

2018 Guidance

CoreSite is introducing its 2018 guidance of net income attributable to common shares in the range of $2.15 to $2.27 per diluted share. In addition, the company’s guidance of FFO per diluted share and unit is a range of $4.92 to $5.04, with the difference between net income and FFO being real estate depreciation and amortization.

Quarterly and Subsequent Highlights

• Reported fourth-quarter total operating revenues of $125.9 million, representing a 14.0% increase year over year
• Reported fourth-quarter net income per diluted share of $0.44, consistent with the prior-year level
• Reported fourth-quarter funds from operations (“FFO”), excluding a one-time non-cash expense related to the original issuance costs associated with CoreSite’s redeemed Preferred Stock, of $1.18 per diluted share and unit, representing 11.3% growth year over year. As reported, FFO per diluted share and unit was $1.09
• Executed 128 new and expansion data center leases comprising 41,521 net rentable square feet (NRSF), representing $7.2 million of annualized GAAP rent at an average rate of $174 per square foot
• Commenced 52,221 NRSF of new and expansion leases representing $8.2 million of annualized GAAP rent at an average rate of $157 per square foot
• Realized rent growth on signed renewals of 3.5% on a cash basis and 6.2% on a GAAP basis and recorded rental churn of 0.5% in the fourth quarter
• On January 29, 2018, CoreSite acquired a two-acre land parcel in Chicago, Illinois, on which CoreSite expects to build CH2, a 175,000 square foot turn-key data center building, which should have dark fiber campus connectivity to CoreSite’s existing CH1 facility

GUIDANCE:

CoreSite Realty sees FY2018 EPS of $2.15-$2.27, versus the consensus of $2.20.

For earnings history and earnings-related data on CoreSite Realty (COR) click here.

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