CoreSite Realty Corporation (NYSE:COR) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 12:00 pm ET

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CoreSite Realty Corporation (NYSE:COR) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to CoreSite Realty's Second Quarter 2020 Earnings Call. [Operator Instructions] [Operator Instructions].

I would now like to turn the conference over to your Investor Relations host, Kate Ruppe. Please go ahead.

Executive
Kate Ruppe

Thank you. Good morning, and welcome to CoreSite's Second Quarter 2020 Earnings Conference Call. I'm joined 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 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 can 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 our full earnings release, which can be found on the Investor Relations pages of our website at coresite.com.

With that, I'll turn the call over to Paul.

Executive
Paul Szurek

Good morning, and thank you for joining us. Today, I'm going to cover our second quarter highlights, and Steve and Jeff will follow them with their more in-depth discussions of sales and financial matters. Our Q2 highlights include the completion of two key development projects, the first phase of our new CH2 building, the first purpose-built enterprise-class data center in downtown Chicago and the third and final phase of our SV8 data center expansion in Santa Clara. We also maintained momentum on construction of our new LA3 building, and we continue to be on track for construction completion in early Q4. We achieved power and cooling uptime of seven-nines year-to-date. Operating revenue was $150.5 million, representing growth of 5.3% year-over-year and funds from operations per share was $1.35, an increase of $0.08 per share year-over-year or 6.3%.

The ongoing pandemic has presented many challenges, and we, like everyone else, are navigating the rapidly changing conditions in many of our markets while supporting our customers and vendors as they do the same. Coming off of a record quarter in Q1 for retail and scale sales, new and expansion sales were $3.5 million of annualized GAAP rent, lower than our trailing 12-month results, primarily due to a focus on retail and scale leases and long sales cycles influenced by the pandemic and related economic uncertainties. Steve will provide more detail on this quarter's results, the quality of the sales won and our confidence in the strong funnel for the quarters ahead. Pricing for retail and scale deployments and demand for interconnection were solid as our data center campuses and related connectivity services continue to meet the essential needs of high-performance