CoreSite Realty Corporation (NYSE:COR) Q4 2018 Earnings Conference Call Transcript

Feb 07, 2019 • 12:00 pm ET


CoreSite Realty Corporation (NYSE:COR) Q4 2018 Earnings Conference Call Transcript


Loading Event

Loading Transcript


Greetings and welcome to CoreSite Realty's Fourth Quarter 2018 Earnings Call. At this time, all participants are in a listen-only mode. A question-answer session will follow the formal presentation. (Operating Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Carole Jorgensen, Vice President of Investor Relations and Corporate Communications. Thank you. You may begin.

Carole Jorgensen

Thank you. Good morning and welcome to CoreSite's Fourth Quarter 2018 Earnings Conference Call. I'm joined here today by Paul Szurek, President and CEO; Steve Smith, Chief Revenue Officer; and Jeff Finnin, Chief Financial Officer.

Before we begin, I would like to remind everyone. Before we begin, I would like to remind everyone that our remarks on today's call may include forward-looking statements as defined by Federal Securities Laws, including statements addressing projections, plans or future expectations. These statements are subject to a number of risks and uncertainties that could cause actual results or facts to differ materially from such statements for a variety of reasons.

We assume no obligation to update these forward-looking statements and give no assurance that the expectations will be obtained. Detailed information about these risks is included in our filings with the SEC. Also, on this conference call, we 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 on our website at

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

Paul Szurek

Good morning, and thank you for joining us.

Today, I will share our key accomplishments for 2018, provide an annual overview of our business and service models, and share our 2018 priorities. Steve will then cover our sales results and initiatives to strengthen our market position, and Jeff will take you through our financial results and our 2019 financial guidance.

Our 2018 annual financial accomplishments showed another solid year of growth, including revenue growth of 13%; FFO per share of $5.06, reflecting an increase of 14.2% or 11.9% growth after adjusting for a 2017 one-time non-cash charge; and declared dividends of $4.14 per share, reflecting 15.6% growth. We achieved one of our primary sales goals of substantially growing new logo acquisitions. Annualized GAAP rent sold to new logos in 2018 increased 81% over 2017 and we added many important new companies to our customer communities.

We also made significant progress on restoring our development pipeline in 2018. We placed into service nearly 172,000 net rentable square feet including datacenters completed in Reston and Washington D.C.. We expect two new buildings under construction to come online in mid 2019 in Santa Clara and the North of Virginia, two of our biggest markets and we proactively pursued further development in Santa Clara. In January, we entered into a contract for approximately 4-acre property adjacent to our existing campus to prepare for continued growth in that market.

On the operational