CyrusOne Reports Second Quarter 2021 Earnings

Rhea-AI Summary

CyrusOne reported Q2 2021 earnings with revenue of $284.6 million, an 11% increase year-over-year. However, net income dropped 84% to $7.4 million, with a net income per share of $0.06. Key metrics include adjusted EBITDA of $141.9 million (up 4%) and normalized FFO at $123.1 million (up 4%). The company signed leases for 21 MW and 345,000 CSF, generating $41.8 million in annualized revenue. CyrusOne also announced a 2% increase in its dividend to $0.52 per share and expanded into the Madrid market. Full-year guidance for revenue and normalized FFO was raised.

Positive

• Revenue increased by 11% to $284.6 million.
• Adjusted EBITDA rose 4% to $141.9 million.
• Normalized FFO grew by 4% to $123.1 million.
• Leased 21 MW and 345,000 CSF, generating $41.8 million in annualized revenue.
• Announced a 2% increase in the quarterly dividend to $0.52 per share.
• Expanded into Madrid, increasing growth potential.

Negative

• Net income decreased by 84% to $7.4 million.
• Net income per diluted share fell to $0.06, down from $0.39 in Q2 2020.

CyrusOne Inc. (NASDAQ: CONE), a premier global data center REIT, today announced second quarter 2021 earnings.

Highlights

Category		2Q’21		vs. 2Q’20
Revenue		$284.6 million		11%
Net income		$7.4 million		(84)%
Adjusted EBITDA		$141.9 million		4%
Normalized FFO		$123.1 million		4%
Net income per diluted common share		$0.06		(85)%
Normalized FFO per diluted common share		$1.00		(3)%

• Leased 21 megawatts (“MW”) and 345,000 colocation square feet (“CSF”) in the second quarter, totaling $41.8 million in annualized GAAP revenue
• Backlog of approximately $129 million in annualized GAAP revenue as of the end of the second quarter representing approximately $1,075 million in total contract value
• Expansion into Madrid, Spain, one of the fastest-growing data center markets in Europe, with the acquisition of approximately five acres of land that will provide an estimated 21 MW of power capacity
• Announcing a 2% increase in the quarterly dividend for the third quarter of 2021 to $0.52 per share, up from $0.51 per share in the second quarter of 2021
• Entered into forward sale agreements in the second quarter through the at-the-market (“ATM”) equity program with respect to approximately 3.0 million shares of common stock, which will result in estimated net proceeds of approximately $232 million upon settlement by June 2022
  • Combined with forward sale agreements entered into in the third and fourth quarters of 2020, which will result in estimated net proceeds of approximately $287 million upon settlement by November 2021, the Company has approximately $519 million in available forward equity
  • Settled a forward sale agreement entered into in 2020, resulting in net proceeds of approximately $95 million, which were used to repay a portion of amounts outstanding under the Company’s unsecured revolving credit facility and for general corporate purposes
• As previously announced, executed inaugural green senior notes offering, issuing €500 million of 1.125% senior notes due 2028
• As previously announced, executed an agreement to acquire a 12-acre site in Frankfurt, providing an estimated 63 MW of power capacity to support the Company’s continued growth in one of the strongest data center markets in Europe

Second Quarter 2021 Financial Results

Revenue was $284.6 million for the second quarter, compared to $256.4 million for the same period in 2020, an increase of 11%. The increase in revenue was driven primarily by a 9% increase in occupied CSF and higher metered power reimbursements. Revenue included $2.1 million of equipment sales and $0.4 in lease termination fees, compared to $6.9 million of equipment sales and $3.0 million in lease termination fees in the second quarter of 2020.

Net income was $7.4 million for the second quarter, compared to net income of $45.0 million in the same period in 2020, a decrease of (84)%. Net income for the second quarter included a $1.4 million gain associated with a change in fair value on the undesignated portion of the Company’s net investment hedge compared to a $(13.9) million loss in the second quarter of 2020. Additionally, in the second quarter of 2020, the Company had a $50.4 million gain on the Company’s equity investment in GDS Holdings Limited. Net income per diluted common share¹ was $0.06 in the second quarter of 2021, compared to net income per diluted common share of $0.39 in the same period in 2020.

Net operating income (“NOI”)² was $162.8 million for the second quarter, compared to $157.4 million in the same period in 2020, an increase of 3%. Adjusted EBITDA³ was $141.9 million for the second quarter, compared to $136.8 million in the same period in 2020, an increase of 4%.

Normalized Funds From Operations (“Normalized FFO”)⁴ was $123.1 million for the second quarter, compared to $118.9 million in the same period in 2020, an increase of 4%. Normalized FFO per diluted common share was $1.00 in the first quarter of 2021, compared to $1.03 in the same period in 2020, a decrease of (3)%.

Leasing Activity

CyrusOne leased approximately 21 MW of power and 345,000 CSF in the second quarter, representing approximately $3.5 million in monthly recurring rent, inclusive of the monthly impact of installation charges. The leasing for the quarter represents approximately $41.8 million in annualized GAAP revenue⁵, excluding estimates for pass-through power. The weighted average lease term of the new leases, based on square footage, is 99 months (8.3 years), and the weighted average remaining lease term of CyrusOne’s portfolio is 51 months (taking into consideration the impact of the backlog). Recurring rent churn percentage⁶ for the second quarter was 0.8%, compared to 1.1% for the same period in 2020.

Portfolio Development and Percentage CSF Leased

In the second quarter, the Company completed construction on 146,000 CSF and 45 MW of power capacity across Dublin, London, Northern Virginia, and San Antonio. Percentage CSF leased⁷ as of the end of the second quarter was 86% for stabilized properties⁸ and 83% overall. In addition, the Company has development projects underway in Frankfurt, London, Paris, Phoenix, Northern Virginia, the New York Metro area, and Cincinnati that are expected to add approximately 280,000 CSF and 64 MW of power capacity plus 303,000 square feet of powered shell.

Balance Sheet and Liquidity

As of June 30, 2021, the Company had gross asset value⁹ totaling approximately $9.2 billion, an increase of approximately 15% over gross asset value as of June 30, 2020. CyrusOne had $3.59 billion of long-term debt¹⁰, $370 million of cash and cash equivalents, and approximately $1.39 billion available under its unsecured revolving credit facility as of June 30, 2021. Net debt¹⁰ was $3.38 billion as of June 30, 2021, representing approximately 28% of the Company's total enterprise value as of June 30, 2021 of $12.3 billion. This represented approximately 5.0x Adjusted EBITDA for the last quarter annualized (after further adjusting net debt to reflect the pro forma impact of settlement of the forward sale agreements). Available liquidity¹¹ was $2.28 billion as of June 30, 2021.

During the second quarter of 2021, the Company executed its inaugural green senior notes offering, issuing €500 million of 1.125% senior notes due 2028, with the net proceeds used to repay Euro-denominated borrowings under the Company’s unsecured revolving credit facility and for general corporate purposes. The Company intends to also allocate an amount equal to the net proceeds from the Notes to finance or refinance a portfolio of existing or future green building, renewable energy, energy efficiency, sustainable water and wastewater management, pollution prevention and control and clean transportation projects or assets. The transaction smooths and extends the Company’s debt maturity schedule and increases its percentage of fixed-rate debt.

Also during the second quarter of 2021, the Company entered into forward sale agreements through its ATM equity program with respect to approximately 3.0 million shares of common stock, which will result in estimated net proceeds of approximately $232 million upon settlement by June 2022. Combined with the forward sale agreements entered into in the third and fourth quarters of 2020, which will result in estimated net proceeds of approximately $287 million upon settlement by November 2021, the Company has approximately $519 million in available forward equity (no portion of the forward sale agreements has been settled as of July 28, 2021). Also during the second quarter of 2021, the Company settled a forward sale agreement entered into in 2020, resulting in net proceeds of approximately $95 million, which were used to repay a portion of amounts outstanding on the Company’s unsecured revolving credit facility and for general corporate purposes.

Additionally, the Company entered into sales agreements pursuant to which it may issue and sell from time to time shares of its common stock having an aggregate sales price of up to $750 million through its ATM equity program. This new ATM equity program replaced the prior ATM equity program. As of June 30, 2021, there was approximately $513 million in remaining availability under the new ATM equity program.

Dividend

On April 28, 2021, the Company announced a dividend of $0.51 per share of common stock for the second quarter of 2021. The dividend was paid on July 9, 2021, to stockholders of record at the close of business on June 25, 2021.

Additionally, today the Company is announcing a dividend of $0.52 per share of common stock for the third quarter of 2021, a 2% increase in the dividend compared to the second quarter of 2021. The dividend will be paid on October 8, 2021, to stockholders of record at the close of business on September 24, 2021.

Guidance

CyrusOne is updating its guidance for full year 2021, increasing the lower and upper ends of its guidance ranges for Total Revenue and Normalized FFO per diluted common share, increasing the lower end of its guidance range for Adjusted EBITDA, and decreasing the lower and upper ends of its guidance range for Capital Expenditures. The annual guidance provided below represents forward-looking statements, which are based on current economic conditions, internal assumptions about the Company's existing customer base, and the supply and demand dynamics of the markets in which CyrusOne operates. We continue to monitor the global outbreak of COVID-19 and to take steps to mitigate the potential risks to us posed by the pandemic. While the impact on our business has not been significant to date, the length and severity of the effects of the pandemic remain uncertain and unpredictable and could be materially adverse to our business, financial condition, results of operations, cash flows and ability to pay dividends as well as the market price of our common stock.

CyrusOne does not provide forward-looking guidance for GAAP financial measures (other than Total Revenue and Capital Expenditures) or reconciliations for the non-GAAP financial measures included in the annual guidance provided below due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including Net income (loss) and adjustments that could be made for Transaction, acquisition, integration and other related expenses, Legal claim costs, Impairment losses and (gain) loss on asset disposals and other charges in its reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.

Category		Previous 2021 Guidance		Revised 2021 Guidance
Total Revenue		$1,135 - 1,175 million		$1,155 - 1,185 million
Lease and Other Revenues from Customers		$920 - 950 million		$930 - 950 million
Metered Power Reimbursements		$215 - 225 million		$225 - 235 million
Adjusted EBITDA		$570 - 590 million		$575 - 590 million
Normalized FFO per diluted common share		$3.90 - 4.00		$3.95 - 4.05
Capital Expenditures		$925 - 1,025 million		$875 - 975 million
Development(1)		$905 - 985 million		$855 - 935 million
Recurring		$20 - 40 million		$20 - 40 million
(1)Development capital expenditures include the acquisition of land for future development.

Upcoming Conferences and Events

• Cowen Communications Infrastructure Summit on August 9-10 in Boulder, CO
• Deutsche Bank Technology Conference on September 9-10 in San Francisco, CA

Conference Call Details

CyrusOne will host a conference call on July 29, 2021, at 11:00 AM Eastern Time (10:00 AM Central Time) to discuss its results for the second quarter 2021. A live webcast of the conference call will be available in the “Investors / Events & Presentations” section of the Company's website at http://investor.cyrusone.com/events.cfm. The presentation to be made during the call is now available in this location. The U.S. conference call dial-in number is 1-844-492-3731, and the international dial-in number is 1-412-542-4121. A replay will be available one hour after the conclusion of the earnings call on July 29, 2021, through August 12, 2021. The U.S. toll-free replay dial-in number is 1-877-344-7529 and the international replay dial-in number is 1-412-317-0088. The replay access code is 10158106.

Safe Harbor

This release and the documents incorporated by reference herein contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward- looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and include this statement for purposes of complying with these safe harbor provisions. All statements, other than statements of historical facts, are statements that could be deemed forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the industries in which we operate and the beliefs and assumptions of our management. Words such as "expects," "anticipates," "predicts," "projects," "intends," "plans," "believes," "seeks," "estimates," "continues," "endeavors," "strives," "may," variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, any statements that refer to projections of our future financial performance, our anticipated growth and trends in our and our customers’ respective businesses and industries, and other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned these forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause our actual results to differ materially and adversely from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, (i) the potential widespread and highly uncertain impact of public health outbreaks, epidemics and pandemics, such as the COVID-19 pandemic; (ii) loss of key customers; (iii) indemnification and liability provisions as well as service level commitments in our contracts with customers imposing significant costs on us in the event of losses; (iv) economic downturn, natural disaster or oversupply of data centers in the limited geographic areas that we serve; (v) risks related to the development of our properties including, without limitation, obtaining applicable permits, power and connectivity and our ability to successfully lease those properties; (vi) weakening in the fundamentals for data center real estate, including but not limited to, increased competition, falling market rents, decreases in or slowed growth of global data, e-commerce and demand for outsourcing of data storage and cloud-based applications; (vii) loss of access to key third-party service providers and suppliers; (viii) risks of loss of power or cooling which may interrupt our services to our customers; (ix) inability to identify and complete acquisitions and operate acquired properties; (x) our failure to obtain necessary outside financing on favorable terms, or at all; (xi) restrictions in the instruments governing our indebtedness; (xii) risks related to environmental, social and governance matters; (xiii) unknown or contingent liabilities related to our acquisitions; (xiv) significant competition in our industry; (xv) recent turnover, or the further loss of, any of our key personnel; (xvi) risks associated with real estate assets and the industry; (xvii) failure to maintain our status as a REIT (as defined below) or to comply with the highly technical and complex REIT provisions of the Internal Revenue Code of 1986, as amended; (xviii) REIT distribution requirements could adversely affect our ability to execute our business plan; (xix) insufficient cash available for distribution to stockholders; (xx) future offerings of debt may adversely affect the market price of our common stock; (xxi) increases in market interest rates will increase our borrowing costs and may drive potential investors to seek higher dividend yields and reduce demand for our common stock; (xxii) market price and volume of stock could be volatile; (xxiii) risks related to regulatory changes impacting our customers and demand for colocation space in particular geographies; (xxiv) our international activities, including those conducted as a result of land acquisitions and with respect to leased land and buildings, are subject to special risks different from those faced by us in the United States; (xxv) the continuing uncertainty about the future relationship between the United Kingdom and the European Union following the United Kingdom’s withdrawal from the European Union; (xxvi) expanded and widened price increases in certain selective materials for data center development capital expenditures due to international trade negotiations; (xxvii) a failure to comply with anti-corruption laws and regulations; (xxviii) legislative or other actions relating to taxes; (xxix) any significant security breach or cyber-attack on us or our key partners or customers; (xxx) the ongoing trade conflict between the United States and the People’s Republic of China; (xxxi) increased operating costs and capital expenditures at our facilities, including those resulting from higher utilization by our customers, general market conditions and inflation, exceeding revenue growth; and (xxxii) other factors affecting the real estate and technology industries generally. More information on potential risks and uncertainties is available in our recent filings with the Securities and Exchange Commission (SEC), including CyrusOne’s Form 10-K report, Form 10-Q reports, and Form 8-K reports. We disclaim any obligation other than as required by law to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors or for new information, data or methods, future events or other changes.

Use of Non-GAAP Financial Measures and Other Metrics

This press release contains certain non-GAAP financial measures that management believes are helpful in understanding the Company’s business, as further discussed within this press release. These financial measures, which include Funds From Operations, Normalized Funds From Operations, Normalized Funds From Operations per Diluted Common Share, Adjusted EBITDA, Net Operating Income, and Net Debt should not be construed as being more important than, or a substitute for, comparable GAAP financial measures. Detailed reconciliations of these non-GAAP financial measures to comparable GAAP financial measures have been included in the tables that accompany this release and are available in the Investor Relations section of www.cyrusone.com.

Management uses FFO, Normalized FFO, Normalized FFO per Diluted Common Share, Adjusted EBITDA, and NOI, which are non-GAAP financial measures commonly used in the real estate investments trusts (REIT) industry, as supplemental performance measures. Management uses these measures as supplemental performance measures because, when compared period over period, they capture trends in occupancy rates, rental rates and operating costs. The Company also believes that, as widely recognized measures of the performance of REITs, these measures are used by investors as a basis to evaluate REITs. Other REITs may not calculate these measures in the same manner, and, as presented, they may not be comparable to others. Therefore, FFO, Normalized FFO, NOI, and Adjusted EBITDA should be considered only as supplements to net income (loss) presented in accordance with GAAP as measures of our performance. FFO, Normalized FFO, NOI, and Adjusted EBITDA should not be used as measures of our liquidity or as indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions. These measures also should not be used as supplements to or substitutes for cash flow from operating activities computed in accordance with GAAP. The Company believes that Net Debt provides a useful measure of liquidity and financial health.

¹Net income (loss) per diluted common share is defined as Net income (loss) divided by the weighted average diluted common shares outstanding for the period, which were 122.7 million for the second quarter of 2021 and 115.7 million for the second quarter of 2020.

²We use Net Operating Income ("NOI"), which is a non-GAAP financial measure commonly used in the REIT industry, as a supplemental performance measure. We use NOI as a supplemental performance measure because, when compared period over period, it captures trends in occupancy rates, rental rates and operating expenses. We also believe that, as a widely recognized measure of the performance of REITs, NOI is used by investors as a basis to evaluate REITs.

We calculate NOI as Net income, adjusted for Sales and marketing expenses, General and administrative expenses, Depreciation and amortization expenses, Transaction, acquisition, integration and other related expenses, Interest expense, net, Gain on marketable equity investment, Loss on early extinguishment of debt, Impairment losses and loss on asset disposals, Foreign currency and derivative (gains) losses, net, Other expense (income) and Income tax benefit. Amortization of deferred leasing costs is presented in Depreciation and amortization expenses, which is excluded from NOI. Sales and marketing expenses are not property-specific, rather these expenses support our entire portfolio. As a result, we have excluded these Sales and marketing expenses from our NOI calculation, consistent with the treatment of General and administrative expenses, which also support our entire portfolio. Because the calculation of NOI excludes various expenses, the utility of NOI as a measure of our performance is limited. Other REITs may not calculate NOI in the same manner. Accordingly, our NOI may not be comparable to others. Therefore, NOI should be considered only as a supplement to Net income presented in accordance with GAAP as a measure of our performance. NOI should not be used as a measure of our liquidity or as indicative of funds available to fund our cash needs, including our ability to pay dividends and make distributions. NOI also should not be used as a supplement to or substitute for cash flow from operating activities computed in accordance with GAAP.

³Adjusted EBITDA, which is a non-GAAP financial measure, is defined as Net income (loss) as defined by GAAP adjusted for Interest expense, net; Income tax (benefit) expense; Depreciation and amortization expenses; Impairment losses and loss on asset disposals; Transaction, acquisition, integration and other related expenses; Legal claim costs; Stock-based compensation expense; Cash severance and management transition costs; Severance-related stock compensation costs; Loss on early extinguishment of debt; Gain on marketable equity investment; Foreign currency and derivative (gains) losses, net and Other expense (income). Other companies may not calculate Adjusted EBITDA in the same manner. Accordingly, the Company’s Adjusted EBITDA as presented may not be comparable to others.

⁴We use funds from operations ("FFO") and normalized funds from operations ("Normalized FFO"), which are non-GAAP financial measures commonly used in the REIT industry, as supplemental performance measures. We use FFO and Normalized FFO as supplemental performance measures because, when compared period over period, they capture trends in occupancy rates, rental rates and operating costs. We also believe that, as widely recognized measures of the performance of REITs, FFO and Normalized FFO are used by investors as a basis to evaluate REITs.

We calculate FFO as Net income (loss) computed in accordance with GAAP before Real estate depreciation and amortization and Impairment losses and loss on asset disposals. While it is consistent with the definition of FFO promulgated by the National Association of Real Estate Investment Trusts ("NAREIT"), our computation of FFO may differ from the methodology for calculating FFO used by other REITs. Accordingly, our FFO may not be comparable to others.

We calculate Normalized FFO as FFO adjusted for Loss on early extinguishment of debt; Gain on marketable equity investment; Foreign currency and derivative (gains) losses, net; Amortization of tradenames; Transaction, acquisition, integration and other related expenses; Cash severance and management transition costs; Severance-related stock compensation costs; and Legal claim costs. We believe our Normalized FFO calculation provides a comparable measure between different periods. Other REITs may not calculate Normalized FFO in the same manner, accordingly, our Normalized FFO may not be comparable to others.

In addition, because FFO and Normalized FFO exclude Real estate depreciation and amortization, and capture neither the changes in the value of our properties that result from use or from market conditions, nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our results from operations, the utility of FFO and Normalized FFO as measures of our performance is limited. Therefore, FFO and Normalized FFO should be considered only as supplements to Net income (loss) presented in accordance with GAAP as measures of our performance. FFO and Normalized FFO should not be used as measures of our liquidity or as indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions. FFO and Normalized FFO also should not be used as supplements to or substitutes for cash flow from operating activities computed in accordance with GAAP.

⁵Annualized GAAP revenue is equal to monthly recurring rent, defined as average monthly contractual rent during the term of the lease plus the monthly impact of installation charges, multiplied by 12. It can be shown both inclusive and exclusive of the Company’s estimate of customer reimbursements for metered power.

⁶Recurring rent churn percentage is calculated as any reduction in recurring rent due to customer terminations, service reductions or net pricing decreases as a percentage of rent at the beginning of the period, excluding any impact from metered power reimbursements or other usage-based billing.

⁷Percentage CSF leased is calculated by dividing CSF under signed leases for colocation space (whether or not the lease has commenced billing) by total CSF. Percentage CSF leased differs from percentage CSF occupied presented in the Data Center Portfolio table because the leased rate includes CSF for signed leases that have not commenced billing.

⁸Stabilized properties include data halls that have been in service for at least 24 months or are at least 85% leased.

⁹Gross asset value is defined as total assets plus accumulated depreciation.

¹⁰Long-term debt and net debt exclude adjustments for deferred financing costs and bond discounts / premiums. Net debt, which is a non-GAAP financial measure, provides a useful measure of liquidity and financial health. The Company defines net debt as long-term debt and finance lease liabilities, offset by cash and cash equivalents.

¹¹Liquidity is calculated as cash, cash equivalents, and temporary cash investments on hand, plus the undrawn capacity on CyrusOne’s revolving credit facility, plus the pro forma impact of the net proceeds from the settlement of the forward sale agreements.

About CyrusOne

CyrusOne (NASDAQ: CONE) is a premier global REIT specializing in design, construction and operation of more than 50 high-performance data centers worldwide. The Company provides mission-critical facilities that ensure the continued operation of IT infrastructure for approximately 1,000 customers, including approximately 200 Fortune 1000 companies.

A leader in hybrid-cloud and multi-cloud deployments, CyrusOne offers colocation, hyperscale, and build-to-suit environments that help customers enhance the strategic connection of their essential data infrastructure and support achievement of sustainability goals. CyrusOne data centers offer world-class flexibility, enabling clients to modernize, simplify, and rapidly respond to changing demand. Combining exceptional financial strength with a broad global footprint, CyrusOne provides customers with long-term stability and strategic advantage at scale.

Company Profile

CyrusOne (NASDAQ: CONE) specializes in highly reliable enterprise-class, carrier-neutral data center properties. The Company provides mission-critical data center facilities that protect and ensure the continued operation of IT infrastructure for approximately 1,000 customers, including approximately 200 Fortune 1000 companies. CyrusOne's data center offerings provide the flexibility, reliability, and security that enterprise customers require and are delivered through a tailored, customer service-focused platform designed to foster long-term relationships. CyrusOne is committed to full transparency in communication, management, and service delivery throughout its more than 50 data centers worldwide.

• Best-in-Class Sales Force
• Flexible Solutions that Scale as Customers Grow
• Massively Modular® Engineering with Data Hall Builds in 10-14 Weeks
• Focus on Operational Excellence and Superior Customer Service
• Proven Leading-Edge Technology Delivering Power Densities up to 900 Watts per Square Foot
• National IX Replicates Enterprise Data Center Architecture

Corporate Headquarters		Senior Management
2850 N. Harwood St., Ste. 2200		David Ferdman, Interim President & CEO		Brent Behrman, EVP of Sales
Dallas, Texas 75201		Katherine Motlagh, EVP & Chief Financial Officer		Matt Pullen, EVP & Managing Director, Europe
Phone: (972) 350-0060		John Hatem, EVP & Chief Operating Officer		Robert M. Jackson, EVP General Counsel & Secretary
Website: www.cyrusone.com

Analyst Coverage
Firm				Analyst				Phone Number
BofA Securities				Michael J. Funk				(646) 855-5664
Barclays				Tim Long				(212) 526 4043
Berenberg Capital Markets				Nate Crossett				(646) 949-9030
BMO Capital Markets				Ari Klein				(212) 885-4103
Citi				Mike Rollins				(212) 816-1116
Cowen and Company				Colby Synesael				(646) 562-1355
Credit Suisse				Sami Badri				(212) 538-1727
Deutsche Bank				Matthew Niknam				(212) 250-4711
Green Street				David Guarino				(949) 640-8780
Jefferies				Jonathan Petersen				(212) 284-1705
J.P. Morgan				Richard Choe				(212) 622-6708
KeyBanc Capital Markets				Jordan Sadler				(917) 368-2280
MoffettNathanson				Nick Del Deo, CFA				(212) 519-0025
Morgan Stanley				Simon Flannery				(212) 761-6432
RBC Capital Markets				Jonathan Atkin				(415) 633-8589
Raymond James				Frank G. Louthan IV				(404) 442-5867
Stifel				Erik Rasmussen				(212) 271-3461
TD Securities Inc.				Jonathan Kelcher, CFA				(416) 307-9931
Truist				Greg Miller				(212) 303-4169
UBS				John C. Hodulik, CFA				(212) 713-4226
Wells Fargo				Eric Luebchow				(312) 630-2386
William Blair				Jim Breen, CFA				(617) 235-7513
Wolfe Research				Jeff Kvaal				(646) 582-9350

CyrusOne Inc. Summary of Financial Data (Dollars in millions, except per share amounts)
		Three Months
		June 30,				March 31,				June 30,				Growth %
		2021				2021				2020				Yr/Yr
Revenue		$	284.6			$	298.6			$	256.4			11	%
Net operating income		162.8				162.8				157.4				3	%
Net income		7.4				18.2				45.0				(84)	%
Funds from Operations ("FFO") - Nareit defined		129.0				137.7				154.9				(17)	%
Normalized Funds from Operations ("Normalized FFO")		123.1				120.2				118.9				4	%
Weighted average number of common shares outstanding - diluted for Normalized FFO		122.7				120.5				115.7				6	%
Net income per share - basic		$	0.06			$	0.15			$	0.39			(85)	%
Net income per share - diluted		$	0.06			$	0.15			$	0.39			(85)	%
Normalized FFO per diluted common share		$	1.00			$	1.00			$	1.03			(3)	%
Adjusted EBITDA		$	141.9			$	140.3			$	136.8			4	%
Adjusted EBITDA as a % of Revenue		49.9		%		47.0		%		53.4		%		(3.5) pts

		As of
		June 30,				March 31,				June 30,				Growth %
		2021				2021				2020				Yr/Yr
Balance Sheet Data
Gross investment in real estate		$	7,518.8			$	7,166.0			$	6,504.9			16	%
Accumulated depreciation		(1,977.8)				(1,867.5)				(1,562.7)				27	%
Total investment in real estate, net		5,541.0				5,298.5				4,942.2				12	%
Cash and cash equivalents		369.7				240.9				70.7				n/m
Market value of common equity		8,869.3				8,298.1				8,501.0				4	%
Long-term debt		3,587.8				3,372.7				3,191.3				12	%
Net debt		3,380.9				3,160.4				3,149.4				7	%
Total enterprise value		12,250.2				11,458.5				11,650.4				5	%
Net debt to LQA Adjusted EBITDA(a)		5.0x				4.9x				5.0x				—x
Dividend Activity
Dividends per share		$	0.51			$	0.51			$	0.50			2	%
Portfolio Statistics
Data centers		54				53				51				6	%
Stabilized CSF (000)		4,611				4,422				4,055				14	%
Stabilized CSF % leased		86		%		85		%		88		%		(2) pts
Total CSF (000)		4,889				4,743				4,427				10	%
Total CSF % leased		83		%		82		%		83		%		— pts
Total GSF (000)		8,346				8,139				7,605				10	%
(a) Adjusted to reflect the pro forma impact of the net proceeds from the settlement of the forward sale agreements.

CyrusOne Inc. Condensed Consolidated Statements of Operations (Dollars in millions, except per share amounts) (Unaudited)
		Three Months																			Six Months
		Ended June 30,										Change									Ended June 30,										Change
		2021					2020					$					%				2021					2020					$					%
Revenue(a)		$	284.6				$	256.4				$	28.2				11		%		$	583.2				$	502.3				$	80.9				16		%
Operating expenses:
Property operating expenses		121.8					99.0					22.8					23		%		257.6					191.6					66.0					34		%
Sales and marketing		3.7					3.8					(0.1		)			(3	)	%		7.5					8.5					(1.0		)			(12	)	%
General and administrative		16.6					20.3					(3.7		)			(18	)	%		39.6					47.2					(7.6		)			(16	)	%
Depreciation and amortization		123.7					109.7					14.0					13		%		245.1					217.8					27.3					13		%
Transaction, acquisition, integration and other related expenses		0.1					0.1					—					—		%		0.2					0.5					(0.3		)			(60	)	%
Impairment losses and loss on asset disposals		0.1					2.4					(2.3		)			(96	)	%		0.6					2.4					(1.8		)			(75	)	%
Total operating expenses		266.0					235.3					235.3					13		%		550.6					468.0					82.6					18		%
Operating income		18.6					21.1					(207.1		)			(12	)	%		32.6					34.3					(1.7		)			(5	)	%
Interest expense, net		(14.8		)			(13.9		)			(0.9		)			6		%		(29.9		)			(29.9		)			—					—		%
Gain on marketable equity investment		—					50.4					(50.4		)			(100	)	%		2.4					65.1					(62.7		)			(96	)	%
Loss on early extinguishment of debt		—					—					—					n/m				—					(3.4		)			3.4					(100	)	%
Foreign currency and derivative gains (losses), net		1.4					(13.9		)			15.3					n/m				16.8					(8.8		)			25.6					n/m
Other (expense) income		(0.1		)			0.1					(0.2		)			n/m				(0.2		)			—					(0.2		)			n/m
Net income before income taxes		5.1					43.8					(243.3		)			(88	)	%		21.7					57.3					(35.6		)			(62	)	%
Income tax benefit		2.3					1.2					1.1					92		%		3.9					2.4					1.5					63		%
Net income		$	7.4				$	45.0				$	(37.6	)			(84	)	%		$	25.6				$	59.7				$	(34.1	)			(57	)	%
Net income per share - basic		$	0.06				$	0.39				$	(0.33	)			(85	)	%		$	0.21				$	0.52				$	(0.31	)			(60	)	%
Net income per share - diluted		$	0.06				$	0.39				$	(0.33	)			(85	)	%		$	0.21				$	0.52				$	(0.31	)			(60	)	%

(a)

Revenue includes metered power reimbursements of $53.0 million and $37.1 million for the three months ended June 30, 2021 and 2020, respectively, and includes metered power reimbursements of $126.1 million and $71.9 million for the six months ended June 30, 2021 and 2020, respectively.

CyrusOne Inc. Condensed Consolidated Balance Sheets (Dollars in millions) (Unaudited)
		June 30,					December 31,				Change
		2021					2020				$				%
Assets
Investment in real estate:
Land		$	212.8				$	208.8			$	4.0			2		%
Buildings and improvements		2,253.8					2,035.2				218.6				11		%
Equipment		3,869.0					3,538.9				330.1				9		%
Gross operating real estate		6,335.6					5,782.9				552.7				10		%
Less accumulated depreciation		(1,977.8		)			(1,767.9		)		(209.9		)		12		%
Net operating real estate		4,357.8					4,015.0				342.8				9		%
Construction in progress, including land under development		917.3					982.2				(64.9		)		(7	)	%
Land held for future development		265.9					268.3				(2.4		)		(1	)	%
Total investment in real estate, net		5,541.0					5,265.5				275.5				5		%
Cash and cash equivalents		369.7					271.4				98.3				36		%
Rent and other receivables (net of allowance for doubtful accounts of $2.3 and $3.5 as of June 30, 2021 and December 31, 2020, respectively)		409.4					334.2				75.2				23		%
Restricted cash		24.8					1.5				23.3				n/m
Operating lease right-of-use assets, net		155.0					211.4				(56.4		)		(27	)	%
Equity investments		30.0					67.1				(37.1		)		(55	)	%
Goodwill		455.1					455.1				—				—		%
Intangible assets (net of accumulated amortization of $265.8 and $249.3 as of June 30, 2021 and December 31, 2020, respectively)		141.2					157.8				(16.6		)		(11	)	%
Other assets		115.0					133.4				(18.4		)		(14	)	%
Total assets		$	7,241.2				$	6,897.4			$	343.8			5		%
Liabilities and equity
Debt		$	3,541.6				$	3,409.0			$	132.6			4		%
Finance lease liabilities		162.8					29.1				133.7				n/m
Operating lease liabilities		190.5					249.1				(58.6		)		(24	)	%
Construction costs payable		157.7					133.0				24.7				19		%
Accounts payable and accrued expenses		147.7					151.3				(3.6		)		(2	)	%
Dividends payable		63.6					63.3				0.3				—		%
Deferred revenue and prepaid rents		217.1					174.1				43.0				25		%
Deferred tax liability		45.3					53.0				(7.7		)		(15	)	%
Other liabilities		58.3					77.3				(19.0		)		(25	)	%
Total liabilities		4,584.6					4,339.2				245.4				6		%
Stockholders' equity
Preferred stock, $0.01 par value, 100,000,000 authorized; no shares issued or outstanding		—					—				—				n/m
Common stock, $0.01 par value, 500,000,000 shares authorized and 124,010,867 and 120,442,521 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively		1.2					1.2				—				—		%
Additional paid in capital		3,731.3					3,537.3				194.0				5		%
Accumulated deficit		(1,066.1		)			(966.6		)		(99.5		)		10		%
Accumulated other comprehensive loss		(9.8		)			(13.7		)		3.9				(28	)	%
Total stockholders’ equity		2,656.6					2,558.2				98.4				4		%
Total liabilities and equity		$	7,241.2				$	6,897.4			$	343.8			5		%

CyrusOne Inc. Condensed Consolidated Statements of Operations (Dollars in millions, except per share amounts) (Unaudited)
For the three months ended:	June 30,				March 31,				December 31,				September 30,				June 30,
	2021				2021				2020				2020				2020
Revenue(a)	$	284.6			$	298.6			$	268.4			$	262.8			$	256.4
Operating expenses:
Property operating expenses	121.8				135.8				110.3				109.7				99.0
Sales and marketing	3.7				3.8				5.3				4.5				3.8
General and administrative	16.6				23.0				22.4				29.7				20.3
Depreciation and amortization	123.7				121.4				118.5				113.1				109.7
Transaction, acquisition, integration and other related expenses	0.1				0.1				1.5				1.6				0.1
Impairment losses and loss on asset disposals	0.1				0.5				—				8.8				2.4
Total operating expenses	266.0				284.6				258.0				267.4				235.3
Operating income (loss)	18.6				14.0				10.4				(4.6		)		21.1
Interest expense, net	(14.8		)		(15.1		)		(14.5		)		(13.3		)		(13.9		)
Gain on marketable equity investment	—				2.4				19.7				4.7				50.4
Loss on early extinguishment of debt	—				—				—				(3.1		)		—
Foreign currency and derivative gains (losses), net	1.4				15.4				4.1				(22.9		)		(13.9		)
Other (expense) income	(0.1		)		(0.1		)		—				—				0.1
Net income (loss) before income taxes	5.1				16.6				19.7				(39.2		)		43.8
Income tax benefit (expense)	2.3				1.6				(0.7		)		1.9				1.2
Net income (loss)	$	7.4			$	18.2			$	19.0			$	(37.3	)		$	45.0
Net income (loss) per share - basic	$	0.06			$	0.15			$	0.15			$	(0.32	)		$	0.39
Net income (loss) per share - diluted	$	0.06			$	0.15			$	0.15			$	(0.32	)		$	0.39

(a)

Revenue includes metered power reimbursements of $53.0 million, $73.1 million, $44.9 million, $44.6 million and $37.1 million for the three months ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively.

CyrusOne Inc. Condensed Consolidated Balance Sheets (Dollars in millions) (Unaudited)
	June 30,				March 31,				December 31,				September 30,				June 30,
	2021				2021				2020				2020				2020
Assets
Investment in real estate:
Land	$	212.8			$	207.3			$	208.8			$	181.2			$	175.5
Buildings and improvements	2,253.8				2,046.6				2,035.2				1,918.4				1,857.9
Equipment	3,869.0				3,596.5				3,538.9				3,341.7				3,229.5
Gross operating real estate	6,335.6				5,850.4				5,782.9				5,441.3				5,262.9
Less accumulated depreciation	(1,977.8		)		(1,867.5		)		(1,767.9		)		(1,663.4		)		(1,562.7		)
Net operating real estate	4,357.8				3,982.9				4,015.0				3,777.9				3,700.2
Construction in progress, including land under development	917.3				1,053.3				982.2				1,085.9				1,024.8
Land held for future development	265.9				262.3				268.3				264.4				217.2
Total investment in real estate, net	5,541.0				5,298.5				5,265.5				5,128.2				4,942.2
Cash and cash equivalents	369.7				240.9				271.4				156.5				70.7
Rent and other receivables, net	409.4				389.8				334.2				306.9				307.0
Restricted cash	24.8				1.4				1.5				1.4				1.3
Operating lease right-of-use assets, net	155.0				239.7				211.4				206.9				204.7
Equity investments	30.0				22.9				67.1				178.1				184.9
Goodwill	455.1				455.1				455.1				455.1				455.1
Intangible assets, net	141.2				149.2				157.8				166.4				174.9
Other assets	115.0				114.3				133.4				112.8				127.3
Total assets	$	7,241.2			$	6,911.8			$	6,897.4			$	6,712.3			$	6,468.1
Liabilities and equity
Debt	$	3,541.6			$	3,337.4			$	3,409.0			$	3,197.8			$	3,156.9
Finance lease liabilities	162.8				28.6				29.1				29.2				28.8
Operating lease liabilities	190.5				277.9				249.1				244.3				240.5
Construction costs payable	157.7				137.5				133.0				168.2				155.7
Accounts payable and accrued expenses	147.7				168.9				151.3				145.3				127.0
Dividends payable	63.6				62.0				63.3				63.1				59.7
Deferred revenue and prepaid rents	217.1				183.2				174.1				166.8				166.2
Deferred tax liability	45.3				48.2				53.0				55.4				55.8
Other liabilities	58.3				53.3				77.3				37.8				16.8
Total liabilities	4,584.6				4,297.0				4,339.2				4,107.9				4,007.4
Stockholders' equity
Preferred stock, $0.01 par value, 100,000,000 authorized; no shares issued or outstanding	—				—				—				—				—
Common stock, $0.01 par value, 500,000,000 shares authorized and 124,010,867 and 120,442,521 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively	1.2				1.2				1.2				1.2				1.2
Additional paid in capital	3,731.3				3,628.6				3,537.3				3,532.9				3,305.9
Accumulated deficit	(1,066.1		)		(1,010.2		)		(966.6		)		(923.9		)		(824.7		)
Accumulated other comprehensive loss	(9.8		)		(4.8		)		(13.7		)		(5.8		)		(21.7		)
Total stockholders' equity	2,656.6				2,614.8				2,558.2				2,604.4				2,460.7
Total liabilities and equity	$	7,241.2			$	6,911.8			$	6,897.4			$	6,712.3			$	6,468.1

CyrusOne Inc. Condensed Consolidated Statements of Cash Flows (Dollars in millions) (Unaudited)
	Six Months Ended June 30, 2021				Six Months Ended June 30, 2020				Three Months Ended June 30, 2021				Three Months Ended June 30, 2020
Cash flows from operating activities:
Net income	$	25.6			$	59.7			$	7.4			$	45.0
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	245.1				217.8				123.7				109.7
Provision for bad debt expense	(0.9		)		—				0.2				0.1
Gain on marketable equity investment	(2.4		)		(65.1		)		—				(50.4		)
Foreign currency and derivative (gains) losses, net	(16.8		)		8.8				(1.4		)		13.9
Proceeds from swap terminations	—				2.9				—				—
Impairment losses and loss on asset disposals	0.6				2.2				0.1				2.2
Loss on early extinguishment of debt	—				3.4				—				—
Interest expense amortization, net	3.5				3.6				1.9				1.6
Stock-based compensation expense	8.7				7.0				4.3				3.3
Deferred income tax benefit	(6.0		)		(4.2		)		(3.4		)		(2.2		)
Operating lease cost	10.3				13.0				5.1				6.8
Other (expense) income	(0.1		)		0.5				—				0.3
Change in operating assets and liabilities:
Rent and other receivables, net and other assets	(68.5		)		(31.0		)		(25.1		)		(1.6		)
Accounts payable and accrued expenses	(3.3		)		4.7				(21.7		)		5.9
Deferred revenue and prepaid rents	42.5				2.0				34.0				(1.2		)
Operating lease liabilities	(12.2		)		(11.1		)		(5.7		)		(5.5		)
Net cash provided by operating activities	226.1				214.2				119.4				127.9
Cash flows from investing activities:
Investments in real estate	(361.7		)		(458.0		)		(186.3		)		(261.5		)
Proceeds from sale of equity investments	46.6				8.2				—				8.2
Equity investments	(7.1		)		(4.7		)		(7.1		)		(1.4		)
Proceeds from the sale of real estate assets	4.4				0.3				—				0.3
Net cash used in investing activities	(317.8		)		(454.2		)		(193.4		)		(254.4		)
Cash flows from financing activities:
Issuance of common stock, net	194.2				103.3				98.4				102.7
Dividends paid	(124.7		)		(116.1		)		(61.7		)		(57.7		)
Proceeds from revolving credit facility	173.4				438.8				83.1				194.4
Repayments of revolving credit facility	(610.5		)		(723.1		)		(486.3		)		(100.0		)
Proceeds from Euro bond	603.1				550.2				603.1				(0.4		)
Proceeds from unsecured term loan	—				1,100.0				—				—
Repayments of unsecured term loan	—				(1,100.0		)		—				—
Payment of deferred financing costs	(5.0		)		(12.5		)		(5.0		)		1.1
Payments on finance lease liabilities	(2.2		)		(1.3		)		(1.5		)		(0.6		)
Tax payment upon exercise of equity awards	(8.9		)		(6.4		)		—				(0.1		)
Net cash provided by financing activities	219.4				232.9				230.1				139.4
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(6.1		)		1.4				(3.9		)		0.5
Net (increase) decrease in cash, cash equivalents and restricted cash	121.6				(5.7		)		152.2				13.4
Cash, cash equivalents and restricted cash at beginning of period	272.9				77.7				242.3				58.6
Cash, cash equivalents and restricted cash at end of period	$	394.5			$	72.0			$	394.5			$	72.0
Supplemental disclosure of cash flow information:
Cash paid for interest, including amounts capitalized of $10.8 million and $11.4 million in 2021 and 2020, respectively	$	42.2			$	30.0			$	29.4			$	21.7
Cash paid for income taxes	3.2				0.1				3.2				0.1
Non-cash investing and financing activities:
Construction costs payable	157.7				155.7				157.7				155.7
Dividends payable	63.6				59.7				63.6				59.7

CyrusOne Inc. Reconciliation of Net Income to Net Operating Income (Dollars in millions) (Unaudited)
	Three Months Ended															Six Months Ended
	June 30,								Change							June 30,								Change
	2021				2020				$				%			2021				2020				$				%
Net income	$	7.4			$	45.0			$	(37.6	)		(84	)	%	$	25.6			$	59.7			$	(34.1	)		(57	)	%
Sales and marketing expenses	3.7				3.8				(0.1		)		(3	)	%	7.5				8.5				(1.0		)		(12	)	%
General and administrative expenses	16.6				20.3				(3.7		)		(18	)	%	39.6				47.2				(7.6		)		(16	)	%
Depreciation and amortization expenses	123.7				109.7				14.0				13		%	245.1				217.8				27.3				13		%
Transaction, acquisition, integration and other related expenses	0.1				0.1				—				—		%	0.2				0.5				(0.3		)		(60	)	%
Interest expense, net	14.8				13.9				0.9				6		%	29.9				29.9				—				—		%
Gain on marketable equity investment	—				(50.4		)		50.4				(100	)	%	(2.4		)		(65.1		)		62.7				(96	)	%
Loss on early extinguishment of debt	—				—				—				n/m			—				3.4				(3.4		)		(100	)	%
Impairment losses and loss on asset disposals	0.1				2.4				(2.3		)		(96	)	%	0.6				2.4				(1.8		)		(75	)	%
Foreign currency and derivative (gains) losses, net	(1.4		)		13.9				(15.3		)		n/m			(16.8		)		8.8				(25.6		)		n/m
Other expense (income)	0.1				(0.1		)		0.2				n/m			0.2				—				0.2				n/m
Income tax benefit	(2.3		)		(1.2		)		(1.1		)		92		%	(3.9		)		(2.4		)		(1.5		)		63		%
Net Operating Income	$	162.8			$	157.4			$	5.4			3		%	$	325.6			$	310.7			$	14.9			5		%

CyrusOne Inc. Net Operating Income and Reconciliation of Net Income (Loss) to Adjusted EBITDA (Dollars in millions) (Unaudited)
	Six Months Ended														Three Months Ended
	June 30,								Change						June 30,				March 31,				December 31,				September 30,				June 30,
	2021				2020				$				%		2021				2021				2020				2020				2020
Net Operating Income
Revenue	$	583.2			$	502.3			$	80.9			16	%	$	284.6			$	298.6			$	268.4			$	262.8			$	256.4
Property operating expenses	257.6				191.6				66.0				34	%	121.8				135.8				110.3				109.7				99.0
Net Operating Income (NOI)	$	325.6			$	310.7			$	14.9			5	%	$	162.8			$	162.8			$	158.1			$	153.1			$	157.4
NOI as a % of Revenue	55.8			%	61.9			%							57.2			%	54.5			%	58.9			%	58.3			%	61.4			%
Reconciliation of Net Income (Loss) to Adjusted EBITDA:
Net income (loss)	$	25.6			$	59.7			$	(34.1	)		(57	)%	$	7.4			$	18.2			$	19.0			$	(37.3	)		$	45.0
Interest expense, net	29.9				29.9				—				—	%	14.8				15.1				14.5				13.3				13.9
Income tax (benefit) expense	(3.9		)		(2.4		)		(1.5		)		63	%	(2.3		)		(1.6		)		0.7				(1.9		)		(1.2		)
Depreciation and amortization expenses	245.1				217.8				27.3				13	%	123.7				121.4				118.5				113.1				109.7
Impairment losses and loss on asset disposals	0.6				2.4				(1.8		)		(75	)%	0.1				0.5				—				8.8				2.4
EBITDA (Nareit definition)(a)	$	297.3			$	307.4			$	(10.1	)		(3	)%	$	143.7			$	153.6			$	152.7			$	96.0			$	169.8
Transaction, acquisition, integration and other related expenses	0.2				0.5				(0.3		)		(60	)%	0.1				0.1				1.5				1.6				0.1
Legal claim costs	(4.9		)		0.2				(5.1		)		n/m		(4.9		)		—				—				0.1				0.1
Stock-based compensation expense	8.7				6.9				1.8				26	%	4.3				4.4				4.4				4.2				3.4
Cash severance and management transition costs	(0.1		)		6.8				(6.9		)		n/m		—				(0.1		)		0.9				6.4				—
Severance-related stock compensation costs	—				0.1				(0.1		)		(100	)%	—				—				0.2				2.6				—
Loss on early extinguishment of debt	—				3.4				(3.4		)		(100	)%	—				—				—				3.1				—
Gain on marketable equity investment	(2.4		)		(65.1		)		62.7				(96	)%	—				(2.4		)		(19.7		)		(4.7		)		(50.4		)
Foreign currency and derivative (gains) losses, net	(16.8		)		8.8				(25.6		)		n/m		(1.4		)		(15.4		)		(4.1		)		22.9				13.9
Other expense (income)	0.2				—				0.2				n/m		0.1				0.1				—				—				(0.1		)
Adjusted EBITDA	$	282.2			$	269.0			$	13.2			5	%	$	141.9			$	140.3			$	135.9			$	132.2			$	136.8
Adjusted EBITDA as a % of Revenue	48.4			%	53.6			%							49.9			%	47.0			%	50.6			%	50.3			%	53.4			%

(a)

We calculate Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre) as GAAP Net income (loss) plus Interest expense, net, Income tax (benefit) expense, Depreciation and amortization expenses and Impairment losses and loss (gain) on asset disposals. While it is consistent with the definition of EBITDAre promulgated by the National Association of Real Estate Investment Trusts ("Nareit"), our computation of EBITDAre may differ from the methodology for calculating EBITDAre used by other REITs. Accordingly, our EBITDAre may not be comparable to others.

CyrusOne Inc. Reconciliation of Net Income (Loss) to FFO and Normalized FFO (Dollars in millions) (Unaudited)
	Six Months Ended															Three Months Ended
	June 30,								Change							June 30,				March 31,				December 31,				September 30,				June 30,
	2021				2020				$				%			2021				2021				2020				2020				2020
Reconciliation of Net Income (Loss) to FFO and Normalized FFO:
Net income (loss)	$	25.6			$	59.7			$	(34.1	)		(57	)	%	$	7.4			$	18.2			$	19.0			$	(37.3	)		$	45.0
Real estate depreciation and amortization	240.5				213.3				27.2				13		%	121.5				119.0				116.1				110.7				107.5
Impairment losses and loss on asset disposals	0.6				2.3				(1.7		)		(74	)	%	0.1				0.5				—				8.8				2.4
Funds from Operations ("FFO") - Nareit defined	$	266.7			$	275.3			$	(8.6	)		(3	)	%	$	129.0			$	137.7			$	135.1			$	82.2			$	154.9
Loss on early extinguishment of debt	—				3.4				(3.4		)		(100	)	%	—				—				—				3.1				—
Gain on marketable equity investment	(2.4		)		(65.1		)		62.7				(96	)	%	—				(2.4		)		(19.7		)		(4.7		)		(50.4		)
Foreign currency and derivative (gains) losses, net	(16.8		)		8.8				(25.6		)		n/m			(1.4		)		(15.4		)		(4.1		)		22.9				13.9
Amortization of tradenames	0.6				0.6				—				—		%	0.3				0.3				0.4				0.2				0.3
Transaction, acquisition, integration and other related expenses	0.2				0.6				(0.4		)		(67	)	%	0.1				0.1				1.5				1.6				0.1
Cash severance and management transition costs	(0.1		)		6.8				(6.9		)		n/m			—				(0.1		)		0.9				6.4				—
Severance-related stock compensation costs	—				0.1				(0.1		)		(100	)	%	—				—				0.2				2.6				—
Legal claim costs	(4.9		)		0.2				(5.1		)		n/m			(4.9		)		—				—				0.1				0.1
Normalized Funds from Operations (Normalized FFO)	$	243.3			$	230.7			$	12.6			5		%	$	123.1			$	120.2			$	114.3			$	114.4			$	118.9
Normalized FFO per diluted common share	$	2.00			$	2.00			$	—			—		%	$	1.00			$	1.00			$	0.94			$	0.96			$	1.03
Weighted average diluted common shares outstanding	121.6				115.4				6.2				5		%	122.7				120.5				120.6				119.2				115.7
Additional Information:
Amortization of deferred financing costs and bond premium / discount	3.5				3.6				(0.1		)		(3	)	%	1.9				1.6				1.6				1.6				1.6
Stock-based compensation expense	8.7				6.9				1.8				26		%	4.3				4.4				4.4				4.2				3.4
Non-real estate depreciation and amortization	4.0				4.0				—				—		%	1.8				2.2				2.0				2.1				2.0
Straight line rent adjustments(a)	(2.0		)		(0.4		)		(1.6		)		n/m			(3.2		)		1.2				(8.0		)		(6.6		)		(2.1		)
Straight line rental expense adjustments	0.8				(0.5		)		1.3				n/m			0.6				0.2				0.1				(0.1		)		(0.2		)
Above and below market rent amortization	(0.1		)		(0.2		)		0.1				(50	)	%	—				(0.1		)		(0.1		)		(0.1		)		(0.1		)
Deferred tax benefit	(5.9		)		(4.2		)		(1.7		)		40		%	(3.3		)		(2.6		)		(0.2		)		(2.7		)		(2.2		)
Deferred revenue, primarily installation revenue(b)	23.9				0.1				23.8				n/m			15.1				8.8				2.3				0.2				2.3
Leasing commissions	(9.0		)		(5.6		)		(3.4		)		61		%	(5.1		)		(3.9		)		(4.3		)		(5.3		)		(3.2		)
Recurring capital expenditures	(6.5		)		(9.9		)		3.4				(34	)	%	(3.9		)		(2.6		)		(0.8		)		(3.1		)		(6.4		)

(a)		Straight line rent adjustments:
		Represents the difference between revenue recognized on a straight line basis under GAAP over the term of the lease compared to the contractual rental payments. Lease agreements typically include payments that escalate over the term of the contract or, to a lesser extent, a ramp period.
(b)		Deferred revenue, primarily installation revenue:
		Represents payments received from customers in excess of revenue recognized under GAAP. This primarily relates to specific customer-requested buildouts that CyrusOne does not include in its basic data center design. The company charges customers up front for these buildouts rather than incorporating into rent and billing them over time. The cash payments for these buildouts are non-recurring, and may vary significantly from quarter to quarter, but revenue is amortized over the life of the lease.

CyrusOne Inc. Market Capitalization Summary, Reconciliation of Net Debt and Interest Summary (Unaudited)
Market Capitalization (as of June 30, 2021)
(dollars in millions)		Shares or Equivalents Outstanding			Market Price as of June 30, 2021				Market Value Equivalents (in millions)
Common shares		124,010,867			$	71.52			$	8,869.3
Net Debt									3,380.9
Total Enterprise Value (TEV)									$	12,250.2

Reconciliation of Net Debt
		June 30,				March 31,				June 30,
(dollars in millions)		2021				2021				2020
Long-term debt(a)		$	3,587.8			$	3,372.7			$	3,191.3
Finance lease liabilities		162.8				28.6				28.8
Less:
Cash and cash equivalents		(369.7		)		(240.9		)		(70.7		)
Net Debt		$	3,380.9			$	3,160.4			$	3,149.4
(a) Excludes adjustment for deferred financing costs and unamortized bond discounts.

Interest Summary
		Three Months Ended
		June 30,				March 31,				June 30,				% Change
(dollars in millions)		2021				2021				2020				Yr/Yr
Interest expense and fees, net		$	18.8			$	18.4			$	17.7			6	%
Amortization of deferred financing costs and bond premium / discount		1.9				1.6				1.6				19	%
Capitalized interest		(5.9		)		(4.9		)		(5.4		)		9	%
Total interest expense, net		$	14.8			$	15.1			$	13.9			6	%

CyrusOne Inc. Debt Schedule and Debt Covenants (Unaudited)
Debt Schedule (as of June 30, 2021)
(dollars in millions)
Long-term debt:		Amount					Interest Rate		Maturity Date
Revolving credit facility - USD(a)		—					USD LIBOR + 100 bps		March 2025(b)
Term loan(c)		800.0					USD LIBOR + 120 bps(d)		March 2025(e)
2.900% USD senior notes due 2024		600.0					2.900%		November 2024
1.450% EUR senior notes due 2027(f)		593.9					1.450%		January 2027
1.125% EUR senior notes due 2028(f)		593.9					1.125%		May 2028
3.450% USD senior notes due 2029		600.0					3.450%		November 2029
2.150% USD senior notes due 2030		400.0					2.150%		November 2030
Total long-term debt(g)		$	3,587.8				2.03%(h)
Weighted average term of debt(b)(e):		5.9			years

(a)		Revolving credit facility includes 0.20% facility fee on entire revolving credit facility commitment of $1.4 billion.
(b)		Assuming exercise of 12-month extension option.
(c)		$500 million of $800 million synthetically converted into €451 million pursuant to a USD-EUR cross currency swap; $300 million swapped pursuant to USD floating to fixed interest rate swap.
(d)		Interest rate as of June 30, 2021: 1.30%; weighted average interest rate pursuant to swaps: 1.36%.
(e)		Assumes exercise of two 12-month extension options on $100 million tranche.
(f)		Amount outstanding is USD-equivalent of €500 million.
(g)		Excludes adjustment for deferred financing costs and unamortized bond discounts.
(h)		Weighted average interest rate calculated using interest rate on swapped amount.

Debt Covenants - Senior Notes (as of June 30, 2021)
Ratios			Requirement			June 30, 2021
Total Outstanding Indebtedness to Total Assets			≤ 60%			43%
Secured Indebtedness to Total Assets			≤ 40%			2%
Consolidated EBITDA to Interest Expense			≥ 1.50x			6.86x
Total Unencumbered Assets to Unsecured Indebtedness			≥ 150%			236%

CyrusOne Inc. Colocation Square Footage (CSF) and CSF Leased (Unaudited)
		As of June 30, 2021				As of March 31, 2021				As of June 30, 2020
Market		Colocation Space (CSF)(a) (000)		CSF Leased(b)		Colocation Space (CSF)(a) (000)		CSF Leased(b)		Colocation Space (CSF)(a) (000)		CSF Leased(b)
Northern Virginia		1,217		91	%	1,166		93	%	1,166		92	%
Dallas		621		67	%	621		66	%	621		71	%
Phoenix		581		99	%	581		97	%	581		92	%
San Antonio		434		97	%	434		97	%	367		96	%
Cincinnati		402		68	%	402		68	%	402		73	%
New York Metro		345		72	%	345		66	%	245		76	%
Houston		308		53	%	308		57	%	308		62	%
Chicago		203		80	%	203		80	%	203		78	%
Austin		106		69	%	106		77	%	106		76	%
Raleigh-Durham		94		100	%	94		94	%	94		96	%
Council Bluffs, Iowa		42		15	%	42		15	%	—		—	%
Total - Domestic		4,351		81	%	4,300		81	%	4,093		83	%
Frankfurt		252		100	%	252		90	%	144		99	%
London		167		90	%	148		83	%	148		70	%
Dublin		76		100	%	—		—	%	—		—	%
Amsterdam		39		100	%	39		100	%	39		100	%
Singapore		3		20	%	3		20	%	3		20	%
Total - International		537		96	%	443		88	%	334		85	%
Total - Portfolio		4,889		83	%	4,743		82	%	4,427		83	%
Stabilized Properties(c)		4,611		86	%	4,422		85	%	4,055		88	%

(a)		CSF represents the GSF at an operating facility that is currently leased or readily available for lease as colocation space, where customers locate their servers and other IT equipment. May not sum to total due to rounding.
(b)		CSF Leased is calculated by dividing CSF under signed leases for colocation space (whether or not the lease has commenced billing) by total CSF.
(c)		Stabilized properties include data halls that have been in service for at least 24 months or are at least 85% leased.

CyrusOne Inc. 2021 Guidance
Category			Previous 2021 Guidance			Revised 2021 Guidance
Total Revenue			$1,135 - 1,175 million			$1,155 - 1,185 million
Lease and Other Revenues from Customers			$920 - 950 million			$930 - 950 million
Metered Power Reimbursements			$215 - 225 million			$225 - 235 million
Adjusted EBITDA			$570 - 590 million			$575 - 590 million
Normalized FFO per diluted common share			$3.90 - 4.00			$3.95 - 4.05
Capital Expenditures			$925 - 1,025 million			$875 - 975 million
Development(1)			$905 - 985 million			$855 - 935 million
Recurring			$20 - 40 million			$20 - 40 million
(1)Development capital expenditures include the acquisition of land for future development.

CyrusOne is updating its guidance for full year 2021, increasing the lower and upper ends of its guidance ranges for Total Revenue and Normalized FFO per diluted common share, increasing the lower end of its guidance range for Adjusted EBITDA, and decreasing the lower and upper ends of its guidance range for Capital Expenditures. The annual guidance provided above represents forward-looking statements, which are based on current economic conditions, internal assumptions about the Company's existing customer base, and the supply and demand dynamics of the markets in which CyrusOne operates. We continue to monitor the global outbreak of COVID-19 and to take steps to mitigate the potential risks to us posed by the pandemic. While the impact on our business has not been significant to date, the length and severity of the effects of the pandemic remain uncertain and unpredictable and could be materially adverse to our business, financial condition, results of operations, cash flows and ability to pay dividends as well as the market price of our common stock.

CyrusOne does not provide forward-looking guidance for GAAP financial measures (other than Total Revenue and Capital Expenditures) or reconciliations for the non-GAAP financial measures included in the annual guidance provided below due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including Net income (loss) and adjustments that could be made for Transaction, acquisition, integration and other related expenses, Legal claim costs, Impairment losses and (gain) loss on asset disposals and other charges in its reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.

CyrusOne Inc. Data Center Portfolio As of June 30, 2021 (Unaudited)
				Gross Square Feet (GSF)(a)														Powered Shell Available for Future Development (GSF)(k) (000)		Available Critical Load Capacity (MW)(l)
Stabilized Properties(b)	Metro Area	Annualized Rent(c) ($000)		Colocation Space (CSF)(d) (000)		CSF Occupied(e)		CSF Leased(f)		Office & Other(g) (000)		Office & Other Occupied(h)		Supporting Infrastructure(i) (000)		Total(j) (000)
Dallas - Carrollton	Dallas	$93,970		428		74	%	74	%	83		46	%	133		644		—		60
Northern Virginia - Sterling V	Northern Virginia	71,621		383		99	%	99	%	11		100	%	145		539		231		69
Northern Virginia - Sterling VI	Northern Virginia	62,906		272		100	%	100	%	35		—	%	—		307		—		57
Frankfurt II	Frankfurt	44,435		90		100	%	100	%	9		100	%	72		171		10		35
Somerset I	New York Metro	37,201		169		93	%	93	%	27		99	%	149		344		28		25
Northern Virginia - Sterling II	Northern Virginia	36,994		159		100	%	100	%	9		100	%	55		223		—		30
San Antonio III	San Antonio	34,275		132		100	%	100	%	9		100	%	43		184		—		24
Chicago - Aurora I	Chicago	33,251		113		98	%	99	%	34		100	%	223		371		27		52
Phoenix - Chandler VI	Phoenix	30,068		148		100	%	100	%	6		100	%	32		187		169		24
Frankfurt III	Frankfurt	29,933		109		100	%	100	%	16		100	%	100		225		—		40
Dallas - Lewisville*	Dallas	27,314		114		74	%	74	%	11		57	%	54		180		—		21
Totowa - Madison**	New York Metro	26,349		51		86	%	96	%	22		86	%	59		133		—		12
Frankfurt I	Frankfurt	25,962		53		97	%	97	%	8		91	%	57		118		—		18
Cincinnati - North Cincinnati	Cincinnati	25,821		65		99	%	99	%	45		79	%	53		163		62		12
Cincinnati - 7th Street***	Cincinnati	24,217		197		46	%	46	%	6		61	%	175		378		46		17
Austin III	Austin	23,089		62		58	%	58	%	15		81	%	21		98		67		11
Phoenix - Chandler I	Phoenix	22,600		74		99	%	100	%	35		12	%	39		147		31		12
Phoenix - Chandler V	Phoenix	22,541		143		95	%	95	%	2		97	%	25		170		13		24
Phoenix - Chandler II	Phoenix	21,661		74		100	%	100	%	6		53	%	26		105		—		12
Houston - Houston West II	Houston	20,620		80		71	%	72	%	4		97	%	55		139		11		12
Phoenix - Chandler III	Phoenix	20,553		68		100	%	100	%	2		—	%	30		101		—		12
Raleigh-Durham I	Raleigh-Durham	20,401		94		98	%	100	%	16		99	%	82		192		235		14
Houston - Houston West I	Houston	20,246		112		49	%	49	%	11		100	%	37		161		3		32
San Antonio I	San Antonio	19,770		44		99	%	99	%	6		83	%	46		96		11		12
Northern Virginia - Sterling III	Northern Virginia	19,633		79		100	%	100	%	7		100	%	34		120		—		15
Northern Virginia - Sterling IV	Northern Virginia	18,001		81		100	%	100	%	7		100	%	34		122		—		15
Wappingers Falls I**	New York Metro	17,843		37		62	%	62	%	20		86	%	15		72		—		7
San Antonio II	San Antonio	17,174		64		100	%	100	%	11		100	%	41		117		—		12
Northern Virginia - Sterling I	Northern Virginia	16,088		78		91	%	92	%	6		63	%	49		132		—		12
London II*	London	16,036		64		100	%	100	%	10		100	%	94		168		3		21
Austin II	Austin	15,613		44		83	%	83	%	2		90	%	22		68		—		7
London I*	London	15,105		38		100	%	100	%	12		56	%	58		107		—		15
San Antonio V	San Antonio	14,479		134		90	%	90	%	14		100	%	38		187		1		21
Phoenix - Chandler IV	Phoenix	12,959		73		100	%	100	%	3		100	%	27		103		—		12
San Antonio IV	San Antonio	12,748		60		100	%	100	%	12		100	%	27		99		—		12
Florence	Cincinnati	10,696		53		99	%	99	%	47		87	%	40		140		—		9
Houston - Galleria	Houston	9,304		63		38	%	38	%	23		21	%	25		112		—		11
Cincinnati - Hamilton*	Cincinnati	9,061		47		64	%	64	%	1		100	%	35		83		—		9
Chicago - Aurora II	Chicago	8,476		77		57	%	58	%	45		2	%	14		136		272		16
Houston - Houston West III	Houston	8,076		53		50	%	50	%	10		13	%	32		95		209		6
London - Great Bridgewater**	London	7,334		10		91	%	91	%	—		—	%	1		11		—		1
London III*	London	6,806		39		100	%	100	%	2		100	%	45		86		—		12
Norwalk I**	New York Metro	6,804		13		100	%	100	%	10		88	%	41		63		83		3
Stamford - Riverbend**	New York Metro	5,062		20		22	%	22	%	—		—	%	8		28		—		5
Cincinnati - Mason	Cincinnati	4,738		34		100	%	100	%	26		98	%	17		78		—		4
Dallas - Allen	Dallas	4,466		79		20	%	20	%	—		—	%	58		137		204		6
Amsterdam I	Amsterdam	4,403		39		100	%	100	%	15		100	%	40		94		207		4
Chicago - Lombard	Chicago	2,326		14		50	%	50	%	4		79	%	12		30		29		2
Totowa - Commerce**	New York Metro	799		—		—	%	—	%	20		44	%	6		26		—		—
Cincinnati - Blue Ash*	Cincinnati	516		6		36	%	36	%	7		100	%	2		15		—		1
Singapore - Inter Business Park**	Singapore	381		3		20	%	20	%	—		—	%	—		3		—		1
Dublin	Dublin	—		76		100	%	100	%	19		100	%	32		126		78		12
Stabilized Properties - Total		$1,060,723		4,611		86	%	86	%	762		68	%	2,557		7,930		2,030		883

CyrusOne Inc.
Data Center Portfolio
As of June 30, 2021
(Unaudited)
					Gross Square Feet (GSF)(a)														Powered Shell Available for Future Development (GSF)(k) (000)		Available Critical Load Capacity (MW)(l)
	Metro Area	Annualized Rent(c) ($000)			Colocation Space (CSF)(d) (000)		CSF Occupied(e)		CSF Leased(f)		Office & Other(g) (000)		Office & Other Occupied(h)		Supporting Infrastructure(i) (000)		Total(j) (000)
Stabilized Properties - Total		$	1,060,723		4,611		86	%	86	%	762		68	%	2,557		7,930		2,030		883
Pre-Stabilized Properties(b)
Northern Virginia - Sterling VIII	Northern Virginia	11,778			61		59	%	59	%	4		—	%	25		90		—		12
Northern Virginia - Sterling IX	Northern Virginia	3,668			104		18	%	33	%	1		—	%	68		173		72		21
Council Bluffs I	Iowa	1,915			42		12	%	15	%	14		—	%	18		73		42		5
Somerset (DH #12 and #13)	New York Metro	1,895			54		—	%	—	%	9		—	%	—		63		—		5
London II*(DH #3)	London	—			17		—	%	—	%	—		—	%	—		17		—		7
All Properties - Total		$	1,079,979		4,889		82	%	83	%	791		65	%	2,667		8,346		2,144		933

*		Indicates properties in which we hold a leasehold interest in the building shell and land. All data center infrastructure has been constructed by us and is owned by us.
**		Indicates properties in which we hold a leasehold interest in the building shell, land, and all data center infrastructure.
***		The information provided for the Cincinnati - 7th Street property includes data for two facilities, one of which we lease and one of which we own.
(a)		Represents the total square feet of a building under lease or available for lease based on engineers' drawings and estimates but does not include space held for development or space used by CyrusOne.
(b)		Stabilized properties include data halls that have been in service for at least 24 months or are at least 85% leased. Pre-stabilized properties include data halls that have been in service for less than 24 months and are less than 85% leased.
(c)		Represents monthly contractual rent (defined as cash rent including customer reimbursements for metered power) under existing customer leases as of June 30, 2021 multiplied by 12. For the month of June 2021, customer reimbursements were $208.4 million annualized and consisted of reimbursements by customers across all facilities with separately metered power. Customer reimbursements under leases with separately metered power vary from month-to-month based on factors such as our customers' utilization of power and the suppliers' pricing of power. From July 1, 2019 through June 30, 2021, customer reimbursements under leases with separately metered power constituted between 14.9% and 19.4% of annualized rent. After giving effect to abatements, free rent and other straight-line adjustments, our annualized effective rent as of June 30, 2021 was $1,074.2 million. Our annualized effective rent was lower than our annualized rent as of June 30, 2021 because our negative straight-line and other adjustments and amortization of deferred revenue exceeded our positive straight-line adjustments due to factors such as the timing of contractual rent escalations and customer payments for services.
(d)		CSF represents the GSF at an operating facility that is currently leased or readily available for lease as colocation space, where customers locate their servers and other IT equipment.
(e)		Percent occupied is determined based on CSF billed to customers under signed leases as of June 30, 2021 divided by total CSF. Leases signed but that have not commenced billing as of June 30, 2021 are not included.
(f)		Percent leased is calculated by dividing CSF under signed leases for colocation space (whether or not the lease has commenced billing) by total CSF.
(g)		Represents the GSF at an operating facility that is currently leased or readily available for lease as space other than CSF, which is typically office and other space.
(h)		Percent occupied is determined based on Office & Other space being billed to customers under signed leases as of June 30, 2021 divided by total Office & Other space. Leases signed but not commenced as of June 30, 2021 are not included.
(i)		Represents infrastructure support space, including mechanical, telecommunications and utility rooms, as well as building common areas.
(j)		Represents the GSF at an operating facility that is currently leased or readily available for lease. This excludes existing vacant space held for development.
(k)		Represents space that is under roof that could be developed in the future for GSF, rounded to the nearest 1,000.
(l)		Critical power capacity represents the gross aggregate of UPS power installed and available to provide multiple redundancy levels for lease and exclusive use by customers. Capacity is stated in megawatts as represented by UPS manufacturer nameplate ratings and does not include ancillary UPS capacity not configured for the direct support of leased customer critical IT load (e.g. dedicated office power, office disaster recovery UPS, or UPS utilized by CyrusOne for infrastructure control circuits). Does not sum to total due to rounding.

CyrusOne Inc. GSF Under Development As of June 30, 2021 (Dollars in millions) (Unaudited)
			GSF Under Development(a)												Under Development Costs(b)
Facilities	Metro Area	Estimated Completion Date	Colocation Space (CSF) (000)		Office & Other (000)		Supporting Infrastructure (000)		Powered Shell(c) (000)		Total (000)		Critical Load MW Capacity(d)		Actual to Date(e)		Estimated Costs to Completion(f)	Total
Cincinnati - North Cincinnati	Cincinnati	3Q'21	3		—		—		—		3		2.0		$3		$6-9	$9-12
Paris I(g)	Paris	3Q'21	26		4		15		201		246		6.0		45		8-21	53-66
Norwalk I	New York	3Q'21	4		—		—		—		4		2.0		4		4-5	8-9
Frankfurt III (DH #4)	Frankfurt	3Q'21	15		3		15		—		33		4.0		10		3-5	13-15
Phoenix - Chandler VII	Phoenix	3Q'21	62		10		38		—		110		15.0		5		65-75	70-80
Phoenix - Chandler V	Phoenix	3Q'21	—		—		—		—		—		3.0		2		9-12	11-14
Northern Virginia - Sterling IX	Northern Virginia	3Q'21	51		8		2		—		61		6.0		17		7-11	24-28
London I	London	4Q'21	8		—		—		—		8		3.0		—		10-15	10-15
London IV	London	2Q'22	38		7		39		101		186		6.0		—		48-68	48-68
Frankfurt IV	Frankfurt	4Q'22	73		11		39		—		122		17.0		3		118-137	121-140
Total			280		43		148		303		773		64.0		$89		$278-358	$367-447

(a)		Represents GSF at a facility for which, as of June 30, 2021, activities have commenced or are expected to commence in the next 2 quarters to prepare the space for its intended use. Estimates and timing are subject to change. May not sum to total due to rounding.
(b)		London development costs are GBP-denominated and shown as USD-equivalent based on an exchange rate of 1.38 as of June 30, 2021. Frankfurt and Paris development costs are EUR-denominated and shown as USD-equivalent based on an exchange rate of 1.19 as of June 30, 2021.
(c)		Represents GSF under construction that, upon completion, will be powered shell available for future development into GSF.
(d)		Critical power capacity represents the gross aggregate of UPS power installed and available to provide multiple redundancy levels for lease and exclusive use by customers. Capacity is stated in megawatts as represented by UPS manufacturer nameplate ratings and does not include ancillary UPS capacity not configured for the direct support of leased customer critical IT load.
(e)		Actual to date is the cash investment as of June 30, 2021. There may be accruals above this amount for work completed, for which cash has not yet been paid.
(f)		Represents management’s estimate of the total costs required to complete the current GSF under development. There may be an increase in costs if customers require greater power density.
(g)		Paris I is 100% preleased, with development planned in phases through mid-2026 to align with customer commitments.

Capital Expenditures - Investment in Real Estate(a)				Three Months Ended				Six Months Ended
(dollars in millions)				June 30, 2021				June 30, 2021
Capital expenditures - investment in real estate				$182.4				$355.2
(a) Excludes recurring capital expenditures.

CyrusOne Inc. Land Available for Future Development (Acres) As of June 30, 2021 (Unaudited)
				As of
Market				June 30, 2021
Amsterdam				8
Austin				22
Chicago				23
Cincinnati				98
Council Bluffs, Iowa				10
Dallas				57
Dublin				15
Houston				20
London				33
Madrid				5
Northern Virginia				24
Phoenix				96
Quincy, Washington				48
San Antonio				12
Santa Clara				23
Total Available(a)				493
Book Value of Total Available				$	265.9		million
(a) Does not sum to total due to rounding.

CyrusOne Inc. Leasing Statistics - Lease Signings As of June 30, 2021 (Unaudited)
Period		Number of Leases(a)		Total CSF Signed(b)		Total kW Signed(c)		Total MRR Signed (000)(d)		Weighted Average Lease Term(e)
2Q'21		370		345,000		20,855		$3,487		99
Prior 4Q Avg.		402		120,750		21,382		$2,756		93
1Q'21		414		156,000		28,493		$2,947		116
4Q'20		383		162,000		31,321		$4,112		117
3Q'20		415		15,000		3,756		$894		54
2Q'20(f)		396		150,000		21,956		$3,070		84

(a)		Number of leases represents each agreement with a customer. A lease agreement could include multiple spaces, and a customer could have multiple leases.
(b)		CSF represents the GSF at an operating facility that is leased as colocation space, where customers locate their servers and other IT equipment.
(c)		Represents maximum contracted kW that customers may draw during lease period, and subject to full build out of projects subject to additional conditions. Additionally, we can develop flexible solutions for our customers at multiple resiliency levels, and the kW signed is unadjusted for this factor.
(d)		Monthly recurring rent is defined as the average monthly contractual rent during the term of the lease. It includes the monthly impact of installation charges of approximately $0.7 million in 2Q'21 and $0.2 million in 2Q'20, 3Q'20, 4Q'20 and 1Q'21.
(e)		Calculated on a CSF-weighted basis.
(f)		Includes exercise of previously disclosed (in 3Q’19) paid reservation for 4.5 MW and 30,000 CSF totaling approximately $5.5 million in annualized GAAP revenue in 2Q’20.

CyrusOne Inc. New MRR Signed - Existing vs. New Customers As of June 30, 2021 (Dollars in thousands) (Unaudited)
		New MRR Signed(a)
		3Q'19(b)		4Q'19		1Q'20		2Q'20		3Q'20		4Q'20		1Q'21		2Q'21
Existing Customers		$2,849		$843		$4,756		$2,872		$841		$3,881		$2,827		$3,332
New Customers		$1,007		$220		$238		$198		$53		$231		$120		$155
Total		$3,856		$1,063		$4,994		$3,070		$894		$4,112		$2,947		$3,487
% from Existing Customers		74%		79%		95%		94%		94%		94%		96%		96%

(a)		Monthly recurring rent is defined as the average monthly contractual rent during the term of the lease. It includes the monthly impact of installation charges of approximately $0.7 million in 2Q'21, $0.3 million in 1Q'20, $0.2 million in 4Q'19, 2Q'20, 3Q'20, 4Q'20, and 1Q'21, and $0.1 million in 3Q'19.
(b)		3Q'19 leasing statistics updated from those reported in 3Q'19-1Q'20 earnings materials to remove the prior inclusion of the paid reservation that was exercised in 2Q'20 and included in the 2Q'20 leasing results (30,000 CSF, 4.5 MW, and approximately $0.5 million in monthly recurring rent).

CyrusOne Inc. Customer Sector Diversification(a) As of June 30, 2021 (Unaudited)
		Principal Customer Industry		Number of Locations		Annualized Rent(b) (000)				Percentage of Portfolio Annualized Rent(c)			Weighted Average Remaining Lease Term in Months(d)
1		Information Technology		12		$	217,526			20.2	%		89.0
2		Information Technology		11		79,548				7.4	%		20.8
3		Information Technology		5		72,380				6.7	%		36.2
4		Information Technology		5		58,946				5.5	%		38.1
5		Information Technology		5		43,642				4.0	%		36.1
6		Information Technology		9		33,210				3.1	%		39.7
7		Information Technology		3		22,058				2.0	%		29.3
8		Financial Services		1		19,818				1.8	%		117.0
9		Healthcare		2		16,309				1.5	%		78.0
10		Research and Consulting Services		3		14,958				1.4	%		16.0
11		Information Technology		7		13,054				1.2	%		30.8
12		Financial Services		2		11,392				1.1	%		36.9
13		Financial Services		4		11,241				1.0	%		81.2
14		Information Technology		1		9,789				0.9	%		32.6
15		Financial Services		4		9,271				0.9	%		79.7
16		Telecommunication Services		1		8,656				0.8	%		77.0
17		Telecommunication Services		2		8,639				0.8	%		8.5
18		Information Technology		1		7,910				0.7	%		6.0
19		Telecommunication Services		7		7,608				0.7	%		21.5
20		Information Technology		3		6,934				0.6	%		35.4
						$	672,887			62.3	%		55.3

(a)		Customers and their affiliates are consolidated.
(b)		Represents monthly contractual rent (defined as cash rent including customer reimbursements for metered power) under existing customer leases as of June 30, 2021, multiplied by 12. For the month of June 2021, customer reimbursements were $208.4 million annualized and consisted of reimbursements by customers across all facilities with separately metered power. Customer reimbursements under leases with separately metered power vary from month-to-month based on factors such as our customers' utilization of power and the suppliers' pricing of power. From July 1, 2019 through June 30, 2021, customer reimbursements under leases with separately metered power constituted between 14.9% and 19.4% of annualized rent. After giving effect to abatements, free rent and other straight-line adjustments, our annualized effective rent as of June 30, 2021 was $1,074.2 million. Our annualized effective rent was lower than our annualized rent as of June 30, 2021 because our negative straight-line and other adjustments and amortization of deferred revenue exceeded our positive straight-line adjustments due to factors such as the timing of contractual rent escalations and customer payments for services.
(c)		Represents the customer’s total annualized rent divided by the total annualized rent in the portfolio as of June 30, 2021, which was approximately $1,080.0 million.
(d)		Weighted average based on customer’s percentage of total annualized rent expiring and is as of June 30, 2021, assuming that customers exercise no renewal options and exercise all early termination rights that require payment of less than 50% of the remaining rents. Early termination rights that require payment of 50% or more of the remaining lease payments are not assumed to be exercised because such payments approximate the profitability margin of leasing that space to the customer, such that we do not consider early termination to be economically detrimental to us.

CyrusOne Inc. Lease Distribution As of June 30, 2021 (Unaudited)
GSF Under Lease(a)		Number of Customers(b)			Percentage of All Customers			Total Leased GSF(c) (000)			Percentage of Portfolio Leased GSF			Annualized Rent(d) (000)			Percentage of Annualized Rent
0-999		618			66	%		128			2	%		$	100,551		9	%
1000-2499		121			13	%		190			3	%		48,052			4	%
2500-4999		60			6	%		216			4	%		42,082			4	%
5000-9999		49			5	%		335			5	%		61,491			6	%
10000+		91			10	%		5,363			86	%		827,802			77	%
Total		939			100	%		6,231			100	%		$	1,079,979		100	%

(a)		Represents all leases in our portfolio, including colocation, office and other leases.
(b)		Represents the number of customers occupying data center, office and other space as of June 30, 2021. This may vary from total customer count as some customers may be under contract but have yet to occupy space.
(c)		Represents the total square feet at a facility under lease and that has commenced billing, excluding space held for development or space used by CyrusOne. A customer’s leased GSF is estimated based on such customer’s direct CSF or office and light-industrial space plus management’s estimate of infrastructure support space, including mechanical, telecommunications and utility rooms, as well as building common areas.
(d)		Represents monthly contractual rent (defined as cash rent including customer reimbursements for metered power) under existing customer leases as of June 30, 2021, multiplied by 12. For the month of June 2021, customer reimbursements were $208.4 million annualized and consisted of reimbursements by customers across all facilities with separately metered power. Customer reimbursements under leases with separately metered power vary from month-to-month based on factors such as our customers' utilization of power and the suppliers' pricing of power. From July 1, 2019 through June 30, 2021, customer reimbursements under leases with separately metered power constituted between 14.9% and 19.4% of annualized rent. After giving effect to abatements, free rent and other straight-line adjustments, our annualized effective rent as of June 30, 2021 was $1,074.2 million. Our annualized effective rent was lower than our annualized rent as of June 30, 2021 because our negative straight-line and other adjustments and amortization of deferred revenue exceeded our positive straight-line adjustments due to factors such as the timing of contractual rent escalations and customer payments for services.

CyrusOne Inc. Lease Expirations As of June 30, 2021 (Unaudited)
Year(a)		Number of Leases Expiring(b)			Total GSF Expiring (000)			Percentage of Total GSF			Annualized Rent(c) (000)				Percentage of Annualized Rent			Annualized Rent at Expiration(d) (000)				Percentage of Annualized Rent at Expiration
Available					2,115			25	%
Month-to-Month		1,757			153			2	%		$	56,316			5	%		$	56,699			5	%
2021		1,907			471			6	%		96,461				9	%		96,806				8	%
2022		2,794			886			11	%		169,021				16	%		185,096				16	%
2023		1,540			1,154			14	%		183,143				17	%		189,980				16	%
2024		836			654			8	%		127,022				12	%		134,898				11	%
2025		198			264			3	%		65,919				6	%		75,194				6	%
2026		119			749			9	%		126,944				12	%		138,435				12	%
2027		51			622			7	%		99,573				9	%		114,230				10	%
2028		27			304			4	%		39,327				3	%		45,505				4	%
2029		8			83			1	%		7,078				1	%		8,250				1	%
2030		8			177			2	%		15,567				1	%		29,025				2	%
2031 - Thereafter		29			715			8	%		93,607				9	%		106,144				9	%
Total		9,274			8,346			100	%		$	1,079,979			100	%		$	1,180,261			100	%

(a)		Leases that were auto-renewed prior to June 30, 2021 are shown in the calendar year in which their current auto-renewed term expires. Unless otherwise stated in the footnotes, the information set forth in the table assumes that customers exercise no renewal options and exercise all early termination rights that require payment of less than 50% of the remaining rents. Early termination rights that require payment of 50% or more of the remaining lease payments are not assumed to be exercised.
(b)		Number of leases represents each agreement with a customer. A lease agreement could include multiple spaces and a customer could have multiple leases.
(c)		Represents monthly contractual rent (defined as cash rent including customer reimbursements for metered power) under existing customer leases as of June 30, 2021, multiplied by 12. For the month of June 2021, customer reimbursements were $208.4 million annualized and consisted of reimbursements by customers across all facilities with separately metered power. Customer reimbursements under leases with separately metered power vary from month-to-month based on factors such as our customers' utilization of power and the suppliers' pricing of power. From July 1, 2019 through June 30, 2021, customer reimbursements under leases with separately metered power constituted between 14.9% and 19.4% of annualized rent. After giving effect to abatements, free rent and other straight-line adjustments, our annualized effective rent as of June 30, 2021 was $1,074.2 million. Our annualized effective rent was lower than our annualized rent as of June 30, 2021 because our negative straight-line and other adjustments and amortization of deferred revenue exceeded our positive straight-line adjustments due to factors such as the timing of contractual rent escalations and customer payments for services.
(d)		Represents the final monthly contractual rent under existing customer leases that had commenced as of June 30, 2021, multiplied by 12.

 

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FAQ

What were CyrusOne's earnings for Q2 2021?

CyrusOne reported earnings of $284.6 million for Q2 2021, an increase of 11% compared to Q2 2020.

How much did net income decline in Q2 2021 for CONE?

Net income for Q2 2021 decreased by 84% to $7.4 million.

What is the guidance update for CyrusOne in 2021?

CyrusOne updated its guidance for full-year 2021, raising total revenue and normalized FFO projections.

What dividend increase did CyrusOne announce for Q3 2021?

CyrusOne announced a 2% increase in its quarterly dividend to $0.52 per share for Q3 2021.

How much colocation space did CyrusOne lease in Q2 2021?

CyrusOne leased approximately 345,000 colocation square feet in Q2 2021.