CoreSite Realty Corporation (NYSE:COR.PRA) Q4 2016 Earnings Conference Call - Preliminary Transcript

Feb 09, 2017 • 12:00 pm ET


CoreSite Realty Corporation (NYSE:COR.PRA) Q4 2016 Earnings Conference Call - Preliminary Transcript


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Greetings and welcome to CoreSite Realty's Fourth Quarter 2016 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions). As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Greer Aviv. Thank you. You may begin.

Greer Aviv

Thank you. And thank you everyone for joining us today for our fourth quarter 2016 earnings conference call. I'm joined here today by Paul Szurek, our President and CEO; Steve Smith, our Senior Vice President, Sales and Marketing; and Jeff Finnin, our Chief Financial Officer.

Before we begin, I would like to remind everyone that our remarks on today's call include forward-looking statements within the meaning of applicable securities laws, including statements regarding projections, plans, or future expectations. These forward-looking statements reflect current views and expectations, which are based on currently available information and management's judgment. We assume no obligation to update these forward-looking statements and we can give no assurance that the expectations will be obtained. Actual results may differ materially from those described in the forward-looking statements and may be affected by a variety of risks and uncertainties, including those set forth in our SEC filings. Also, on this conference call, we will refer to certain non-GAAP financial measures such as funds from operations. Reconciliations of these non-GAAP financial measures are available in the supplemental information that is part of the full earnings release, which can be accessed on the Investor Relations pages of our website at

And now, I'll turn the call over to Paul.

Paul E. Szurek

Good morning and thank you for taking the time to join us today. I'm glad to be here to share our fourth quarter financial and operational results with you as well as some highlights regarding our full-year 2016 performance. We finished the year strongly reporting record levels of fourth quarter revenues, FFO per share and cash flow while continuing to grow, expand and improve across the organization. We also executed well on our strategic priorities in Q4 completing the development of our largest multi-tenant data center, acquiring extensive capacity for future growth and attracting numerous key customers to our data center communities.

Compared to Q4 2015, we reported 33% growth in FFO per share driven by 22% growth in revenue and 27% growth in adjusted EBITDA. Since CoreSite's IPO in 2010, we have been on a journey to profitably expand and deepen our footprint in the essential data center markets we serve across the nation. We believe that this strategy and its execution, has enabled us to create sustainable value for our customers and shareholders.

With that in mind, I want to share some highlights of our performance since our IPO. Based on Q4 annualized amounts, we have nearly tripled total operating revenues to a run rate of approximately $440 million exiting 2016. Both FFO per share and adjusted EBITDA have increased at a compound annual rate of 27% while our adjusted EBITDA