QTS Realty (NYSE: QTS), owner of 26 data center facilities throughout the U.S., announced its third quarter earnings yesterday. The company reported increased capex in 2020, saying it is the direct result of leasing activity that has outperformed expectations. Over 80 percent of their projected development capex in 2020 directly tied to supporting signed customer leases.
“Strong execution of our business plan during the third quarter resulted in one of the highest leasing quarters in QTS history,” said Chad Williams, Chairman and CEO of QTS. He noted the results were “highlighted by strong contributions across each of our target customer verticals including Hyperscale, Hybrid Colocation and Federal. QTS’ differentiation continues to drive increased win rates and, combined with the material enhancements we implemented in our balance sheet and liquidity over the past twelve months, we believe our business is positioned for sustainable growth and performance.”
Williams said to expect a similar amount of gross power capacity deliveries in 2021 as 2020 (60MW+), which he said are approximately equal to deliveries in prior three years combined.
Other highlights included:
- Strong ROIC continues to represent significant value creation spread above cost of capital, expecting strong growth to continue into 2021
- Low double digit revenue growth in 2021 based on backlog and anticipated leasing performance
- Cash capital expenditures in 2021 expected to be consistent with 2020 levels, based on accelerated pace of leasing activity in 2020 and booked-not-billed backlog