Revenues Up 21%
WASHINGTON, Nov. 3 /PRNewswire-FirstCall/ -- DuPont Fabros Technology, Inc.
(NYSE: DFT) today reported results for the three and nine months ended
September 30, 2009. All per share results are reported on a fully diluted
basis.
Highlights
-- Executed five leases totaling 15.90 megawatts in third quarter,
representing approximately $310 million of total contract value over
respective lease terms.
-- CH1 Phase I 48% leased, ACC5 Phase I 73% leased and ACC5 Phase II 38%
pre-leased.
-- Subsequent to the end of the third quarter executed one lease totaling
1.95 megawatts in Reston, Virginia. This lease, which commences in
January 2010, fully re-leases the 27,268 raised square feet expiring
on
December 31, 2009.
-- Opened Phase I of ACC5, which adds 18% of critical load to our
operating
portfolio.
-- Funds From Operations ("FFO") of $0.29 per share for third quarter of
2009, which was in the upper half of guidance range.
-- Revenues increased 21.0% in the third quarter and 17.0% year to date.
-- Raised the lower end of 2009 FFO per share guidance range by $0.04 per
share to $1.09 to $1.12 per share.
-- Raised the 2009 required dividend payout per share guidance by $0.04
per
share to $0.24 to $0.30 per share.
Hossein Fateh, President and Chief Executive Officer of the Company, said,
"During the third quarter, we continued to focus on leasing and operations,
and are pleased with the progress made. Year to date we have signed 12 leases
totaling 32.80 megawatts of critical load, 187,350 raised square feet of space
and approximately $700 million of contract value to the Company. In the third
quarter we also achieved a solid quarter of earnings and opened our ACC5 Phase
I development. Looking ahead, a principal objective will be raising the funds
necessary to start the next two developments in early 2010 in order to
capitalize on market demand for our product."
Third Quarter 2009 Results
For the quarter ended September 30, 2009, the Company reported earnings per
share of $0.08 compared to $0.12 for the third quarter of 2008. Revenues
increased 21.0%, or $9.0 million, to $51.9 million for the third quarter of
2009 over the third quarter of 2008. The $0.04 per share decrease in earnings
per share is primarily due to higher interest expense, which is attributable
to higher debt balances and lower capitalized interest, partially offset by
higher operating income.
FFO per share for the quarter ended September 30, 2009 was $0.29 compared to
$0.31 for the quarter ended September 30, 2008. The $0.02 per share decrease
is primarily due to higher interest expense, partially offset by higher
operating income, as referenced above.
Nine Months Ended September 30, 2009
For the nine months ended September 30, 2009, the Company reported earnings
per share of $0.22 compared to $0.44 for the nine months ended September 30,
2008. Revenues increased 17.0%, or $21.5 million, to $147.6 million for the
nine months ended September 30, 2009 over the year ago period. The overall
decrease in earnings per share is primarily attributable to higher interest
expense, which is due to higher debt balances and lower capitalized interest,
and increased depreciation and amortization in the current period.
FFO per share for the nine months ended September 30, 2009 was $0.83 compared
to $1.00 for the corresponding period in 2008. The $0.17 per share decrease
is primarily due to higher interest expense, as referenced above.
Portfolio Update/Status
During the third quarter of 2009, the Company executed five new leases
totaling 15.90 megawatts of critical load and 90,460 raised square feet with
an average lease term of 10.6 years. This represents approximately $310
million of contract value to the Company.
-- One lease was signed at CH1 Phase I in Elk Grove Village, Illinois
representing 5.63 megawatts of critical load and 36,700 raised square
feet.
-- Two leases were signed at ACC5 Phase I in Ashburn, Virginia comprising
2.84 megawatts of critical load and 13,700 raised square feet.
-- One lease was signed at VA3 in Reston, Virginia comprising 0.60
megawatts of critical load and 7,060 raised square feet. This is a
new
lease of space being vacated at the end of 2009.
-- One pre-lease was signed at ACC5 Phase II in Ashburn, Virginia
comprising 6.83 megawatts of critical load and 33,000 raised square
feet
with a January 1, 2011 move-in date.
Subsequent to the end of the third quarter, the Company executed one lease at
VA3 in Reston, Virginia totaling 1.95 megawatts of critical load, which,
combined with the lease mentioned above, fully re-leases the space being
vacated at the end of 2009.
As of the date of this press release, the Company's stabilized operating
portfolio's critical load is 100% leased. CH1 Phase I and ACC5 Phase I, both
currently in lease-up, are 48% and 73% leased, respectively. ACC5 Phase II, a
new development yet to be completed, is 38% pre-leased.
Liquidity
The Company has no debt maturities until the third quarter of 2011 assuming
the election of the extension options on the Company's line of credit and the
loans secured by ACC5 and SC1. As of the date of this press release, the
Company has approximately $24 million of unrestricted cash and $20 million
available on its revolving credit facility.
Development Update
The Company has obtained the certificate of occupancy and commissioning report
for ACC5 Phase I. The building was designed and constructed to obtain LEED
gold certification.
As of the date of this press release, the Company is actively pursuing
additional funds for both the ACC5 Phase II in Ashburn, Virginia and NJ1 Phase
I in Piscataway, New Jersey developments. The commencement of one or both is
subject to obtaining adequate financing.
Dividend
The Company has increased its 2009 REIT dividend requirement estimate by
$0.04, and the payment range is now $0.24 to $0.30 per share. The Company has
available funds sufficient to pay the dividend in cash, and the Board of
Directors will determine the method and timing of the dividend prior to the
end of the fourth quarter.
2009 Guidance
The Company has established a FFO guidance range of $0.26 to $0.29 per share
for the fourth quarter of 2009 and is reaffirming and tightening its annual
FFO guidance range by $0.04 per share from $1.05 to $1.12 per share to $1.09
to $1.12 per share. The assumptions underlying this guidance are outlined on
page 15 of this press release.
Third Quarter 2009 Conference Call and Webcast Information
The Company will host a conference call to discuss these results tomorrow,
Wednesday, November 4, 2009 at 10:00 a.m. ET. To access the live call, please
visit the Investor Relations section of the Company's website at www.dft.com
or dial 1-888-726-2419 (domestic) or 1-913-312-0397 (international). A replay
will be available for seven days by dialing 1-888-203-1112 (domestic) or
1-719-457-0820 (international) using conference ID 3352492. The webcast will
be archived on the Company's website for one year at www.dft.com on the
Presentations & Webcasts page.
Fourth Quarter 2009 Conference Call
DuPont Fabros Technology, Inc. expects to announce fourth quarter 2009 results
on Wednesday, February 10, 2010 and to host a conference call to discuss those
results at 10:00 a.m. ET on Thursday, February 11, 2010.
About DuPont Fabros Technology, Inc.
DuPont Fabros Technology, Inc. (NYSE: DFT) is a real estate investment trust
(REIT) and leading owner, developer, operator and manager of wholesale data
centers. The Company's data centers are highly specialized, secure facilities
used primarily by national and international technology companies to house,
power and cool the computer servers that support many of their most critical
business processes. DuPont Fabros Technology, Inc. is headquartered in
Washington, DC. For more information, please visit www.dft.com.
Forward-Looking Statements
Certain statements contained in this press release may be deemed to be
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. The matters described in these forward-looking
statements include expectations regarding future events, results and trends
and are subject to known and unknown risks, uncertainties and other
unpredictable factors, many of which are beyond the Company's control. The
Company faces many risks that could cause its actual performance to differ
materially from the results contemplated by its forward-looking statements,
including, without limitation, the risk that the Company may be unable to
obtain financing on favorable terms or pre-leasing on its development
properties sufficient to enable it to resume construction, the risk that the
Company is unable to satisfy the conditions required to exercise the extension
options for its line of credit and loans, the risks commonly associated with
construction and development of new facilities, risks relating to compliance
with permitting, zoning, land-use and environmental requirements, the risks
related to the leasing of space to third-party tenants, including the ability
of the Company to negotiate leases on terms that will enable it to achieve its
expected returns, the risk that the Company may be unable to acquire
additional properties on favorable terms or at all, and the risk that the
Company may not be able to maintain its qualification as a REIT for federal
tax purposes. The periodic reports that the Company files with the Securities
and Exchange Commission, including its annual report on Form 10-K for the year
ended December 31, 2008, contain detailed descriptions of these and many other
risks to which the Company is subject. These reports are available on our
website at www.dft.com. Because of the risks described above and other
unknown risks, the Company's actual results, performance or achievements may
differ materially from the results, performance or achievements contemplated
by its forward-looking statements. The information set forth in this news
release represents management's expectations and intentions only as of the
date of this press release. The Company assumes no responsibility to issue
updates to the forward-looking matters discussed in this press release.
DUPONT FABROS TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands except share and per share data)
Three months ended Nine months ended
September 30, September 30,
------------------ -----------------
2009 2008 2009 2008
---- ---- ---- ----
Revenues:
Base rent $29,491 $26,080 $83,893 $77,821
Recoveries from tenants 17,954 15,907 51,060 41,843
Other revenues 4,475 931 12,653 6,470
----- --- ------ -----
Total revenues 51,920 42,918 147,606 126,134
Expenses:
Property operating costs 16,505 14,141 46,499 35,898
Real estate taxes
and insurance 1,234 1,015 3,634 2,895
Depreciation and
amortization 14,240 13,038 41,551 37,116
General and
administrative 3,580 2,587 10,142 7,893
Other expenses 3,548 795 10,175 5,334
----- --- ------ -----
Total expenses 39,107 31,576 112,001 89,136
------ ------ ------- ------
Operating income 12,813 11,342 35,605 36,998
Interest income 66 66 350 147
Interest:
Expense incurred (6,088) (3,062) (17,101) (6,525)
Amortization of
deferred financing
costs (1,267) (465) (4,533) (1,056)
------ ---- ------ ------
Net income 5,524 7,881 14,321 29,564
Net income attributable
to redeemable
noncontrolling
interests
- operating
partnership (2,137) (3,732) (5,753) (13,935)
------ ------ ------ -------
Net income attributable
to controlling interests $3,387 $4,149 $8,568 $15,629
====== ====== ====== =======
Earnings per
share - basic:
Net income
attributable
to controlling
interests per
common share $0.08 $0.12 $0.22 $0.44
===== ===== ===== =====
Weighted average
common shares
outstanding 41,041,140 35,436,020 39,407,194 35,423,999
========== ========== ========== ==========
Earnings per
share - diluted:
Net income
attributable
to controlling
interests per
common share $0.08 $0.12 $0.22 $0.44
===== ===== ===== =====
Weighted average
common shares
outstanding 41,992,512 35,455,303 39,918,440 35,424,032
========== ========== ========== ==========
Dividends declared
per common share $- $0.1875 $- $0.5625
== ======= == =======
DUPONT FABROS TECHNOLOGY, INC.
RECONCILIATIONS OF NET INCOME TO FFO AND AFFO (1)
(unaudited and in thousands except per share data)
Three months ended Nine months ended
September 30, September 30,
------------------ ----------------
2009 2008 2009 2008
---- ---- ---- ----
Net income $5,524 $7,881 $14,321 $29,564
Depreciation and amortization 14,240 13,038 41,551 37,116
Less: Non real estate
depreciation and
amortization (124) (40) (355) (174)
---- --- ---- ----
FFO $19,640 $20,879 $55,517 $66,506
Straight-line revenue (4,159) (6,710) (11,504) (22,118)
Amortization of
lease contracts
above and below
market value (1,744) (1,747) (5,233) (5,234)
Loss on early
extinguishment of debt - - 1,047 -
Compensation paid with Company
common shares 612 170 1,431 874
--- --- ----- ---
AFFO $14,349 $12,592 $41,258 $40,028
======= ======= ======= =======
FFO per share - diluted $0.29 $0.31 $0.83 $1.00
===== ===== ===== =====
AFFO per share - diluted $0.21 $0.19 $0.61 $0.60
===== ===== ===== =====
Weighted average common
shares and OP units
outstanding - diluted 67,631,035 66,617,574 67,154,717 66,586,303
========== ========== ========== ==========
(1) Funds from operations, or FFO, is used by industry analysts and investors
as a supplemental operating performance measure for REITs. We calculate FFO in
accordance with the definition that was adopted by the Board of Governors of
the National Association of Real Estate Investment Trusts, or NAREIT. FFO, as
defined by NAREIT, represents net income determined in accordance with GAAP,
excluding extraordinary items as defined under GAAP and gains or losses from
sales of previously depreciated operating real estate assets, plus specified
non-cash items, such as real estate asset depreciation and amortization, and
after adjustments for unconsolidated partnerships and joint ventures.
We use FFO as a supplemental performance measure because, in excluding real
estate related depreciation and amortization and gains and losses from
property dispositions, it provides a performance measure that, when compared
year over year, captures trends in occupancy rates, rental rates and operating
expenses. We also believe that, as a widely recognized measure of the
performance of equity REITs, FFO will be used by investors as a basis to
compare our operating performance with that of other REITs. However, because
FFO excludes real estate related depreciation and amortization and captures
neither the changes in the value of our properties that result from use or
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 effects and could materially impact our
results from operations, the utility of FFO as a measure of our performance is
limited.
While FFO is a relevant and widely used measure of operating performance of
equity REITs, other equity REITs may use different methodologies for
calculating FFO and, accordingly, FFO as disclosed by such other REITs may not
be comparable to our FFO. Therefore, we believe that in order to facilitate a
clear understanding of our historical operating results, FFO should be
examined in conjunction with net income as presented in the consolidated
statements of operations. FFO should not be considered as an alternative to
net income or to cash flow from operating activities (each as computed in
accordance with GAAP) or as an indicator of our liquidity, nor is it
indicative of funds available to fund our cash needs, including our ability to
pay dividends or make distributions.
We also present FFO with a supplemental adjustment which we call Adjusted FFO
("AFFO"). AFFO is FFO excluding straight-line revenue, non-cash stock based
compensation, gain or loss on derivative instruments, acquisition of service
agreements, below market lease amortization net of above market lease
amortization and early extinguishment of debt costs. AFFO does not represent
cash generated from operating activities in accordance with GAAP and therefore
should not be considered an alternative to net income as an indicator of our
operating performance or as an alternative to cash flow provided by operations
as a measure of liquidity and is not necessarily indicative of funds available
to fund our cash needs including our ability to pay dividends. In addition,
AFFO may not be comparable to similarly titled measurements employed by other
companies. Our management uses AFFO in management reports to provide a measure
of REIT operating performance that can be compared to other companies using
AFFO.
DUPONT FABROS TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands except share data)
September 30, December 31,
2009 2008
---- ----
ASSETS (unaudited)
Income producing property:
Land $44,001 $39,617
Buildings and improvements 1,437,415 1,277,230
--------- ---------
1,481,416 1,316,847
Less: accumulated depreciation (101,419) (63,669)
-------- -------
Net income producing property 1,379,997 1,253,178
Construction in progress and
land held for development 325,282 447,881
------- -------
Net real estate 1,705,279 1,701,059
Cash and cash equivalents 21,247 53,512
Restricted cash 4,478 134
Rents and other receivables 1,443 1,078
Deferred rent 50,556 39,052
Lease contracts above market value, net 17,065 19,213
Deferred costs, net 40,805 42,917
Prepaid expenses and other assets 6,545 7,798
----- -----
Total assets $1,847,418 $1,864,763
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Line of credit $223,996 $233,424
Mortgage notes payable 479,000 433,395
Accounts payable and
accrued liabilities 19,198 13,257
Construction costs payable 11,376 82,241
Lease contracts below
market value, net 31,053 38,434
Prepaid rents and other liabilities 26,194 27,075
------ ------
Total liabilities 790,817 827,826
Redeemable noncontrolling
interests - operating partnership 399,501 484,768
Commitments and contingencies - -
Stockholders' equity:
Preferred stock, par
value $.001, 50,000,000
shares authorized, no shares
issued or outstanding at
September 30, 2009
and December 31, 2008 - -
Common stock, par value
$.001, 250,000,000
shares authorized,
41,868,441 shares issued
and outstanding
at September 30, 2009 and
35,495,257 shares issued
and outstanding
at December 31, 2008 42 35
Additional paid in capital 737,432 641,819
Accumulated deficit (71,656) (80,224)
Accumulated other comprehensive loss (8,718) (9,461)
------ ------
Total stockholders' equity 657,100 552,169
------- -------
Total liabilities and stockholders' equity $1,847,418 $1,864,763
========== ==========
DUPONT FABROS TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited and in thousands)
Nine months ended
September 30,
-----------------
2009 2008
---- ----
Cash flow from operating activities
Net income $14,321 $29,564
Adjustments to reconcile net
income to net cash provided
by operating activities
Depreciation and amortization 41,551 37,116
Straight line rent (11,504) (22,118)
Amortization of deferred financing costs 4,533 1,056
Amortization of lease contracts
above and below market value (5,233) (5,234)
Compensation paid with Company
common shares 1,431 874
Changes in operating assets and liabilities
Restricted cash (344) -
Rents and other receivables (365) (160)
Deferred costs (2,663) (238)
Prepaid expenses and other assets 1,942 (4,159)
Accounts payable and
accrued liabilities 5,941 3,600
Prepaid rents and other liabilities 2,852 11,296
----- ------
Net cash provided by operating activities 52,462 51,597
------ ------
Cash flow from investing activities
Investments in real estate - development (104,747) (216,063)
Interest capitalized for real estate under development (4,940) (9,871)
Improvements to real estate (2,373) (2,663)
Additions to non-real estate property (315) (466)
---- ----
Net cash used in investing activities (112,375) (229,063)
-------- --------
Cash flow from financing activities
Line of credit:
Proceeds - 204,000
Repayments (9,428) -
Mortgage notes payable:
Proceeds 181,726 32,537
Lump sum payoffs (135,121) -
Repayments (1,000) -
Escrowed proceeds (4,000) -
Offering costs - (87)
Payments of financing costs (4,529) (421)
Dividends and distributions:
Common shares - (18,618)
Noncontrolling interests - operating partnership - (16,539)
--- -------
Net cash provided by financing activities 27,648 200,872
------ -------
Net (decrease) increase in cash and cash equivalents (32,265) 23,406
Cash and cash equivalents, beginning 53,512 11,510
------ ------
Cash and cash equivalents, ending $21,247 $34,916
======= =======
Supplemental information:
Cash paid for interest, net
of amounts capitalized $17,470 $6,097
======= ======
Deferred financing costs
capitalized for real estate under development $1,270 $1,763
====== ======
Construction costs payable
capitalized to real estate $11,376 $39,827
======= =======
DUPONT FABROS TECHNOLOGY, INC.
Operating Properties
As of September 30, 2009
Year Gross Raised Critical
Property Built/ Building Square Load %
Property Location Renovated Area Feet MW Leased
(2) (3) (4) (5)
Stabilized (1)
--------------
VA3 Reston, VA 2003 256,000 144,901 13.0 100 %
VA4 Bristow, VA 2005 230,000 90,000 9.6 100 %
ACC2 Ashburn, VA 2001/2005 87,000 53,397 10.4 100 %
ACC3 Ashburn, VA 2001/2006 147,000 79,600 13.0 100 %
ACC4 Ashburn, VA 2007 307,000 172,025 36.4 100 %
------- ------- ---- -----
Subtotal - stabilized 1,027,000 539,923 82.4 100 %
Completed not Stabilized
------------------------
CH1 Phase I Elk Grove
Village, IL 2008 285,000 121,223 18.2 48 %
ACC5 Phase I Ashburn, VA 2009 150,000 85,600 18.2 73 %
------- ------ ----
Total Operating Properties 1,462,000 746,746 118.8
========= ======= =====
---------
1. Stabilized operating properties are either 85% or more leased or are in
service for 24 months or greater.
2. Gross building area is the entire building area, including raised
square
footage (the portion of gross building area where our tenants' computer
servers are located), tenant common areas, areas controlled by us (such
as the mechanical, telecommunications and utility rooms) and, in some
facilities, individual office and storage space leased on an as
available
basis to our tenants.
3. Raised square footage is that portion of gross building area where our
tenants locate their computer servers. We consider raised square
footage
to be the net rentable square footage in each of our facilities.
4. Critical load (also referred to as IT load or load used by tenants'
servers or related equipment) is the power available for exclusive use
by
our tenants expressed in terms of megawatt, or MW, or kilowatt, or kW
(1
MW is equal to 1,000 kW).
5. Percentage leased is expressed as a percentage of critical load that is
subject to an executed lease. Represents $133.2 million of annualized
base rent on a straight-line basis for leases executed and/or amended
as
of September 30, 2009 over the non-cancellable terms of the respective
leases and excludes approximately $7.0 million net amortization
increase
in revenue of above and below market leases. Base rent for the next 12
months on a cash basis as of September 30, 2009 is $106.1 million
assuming no additional leasing or changes to existing leases.
DUPONT FABROS TECHNOLOGY, INC.
Lease Expirations
As of September 30, 2009
The following table sets forth a summary schedule of lease expirations of our
operating properties for each of the ten calendar years beginning with 2009.
The information set forth in the table assumes that tenants exercise no
renewal options and considers early tenant termination options.
Number Raised % of Net Total kW
Year of of Square Raised of % of
Lease Leases Feet Square Expiring % of Annualized
Expiration Expiring Expiring Feet Leases Leased kW Base Rent
(1) (2) (3)
---------- ------- --------- ------- -------- --------- ----------
2009(4) 1 27,268 4.1% 2,600 2.5% 0.9%
2010 1 66,661 10.0% 5,688 5.5% 3.1%
2011 2 19,620 3.0% 2,438 2.3% 2.1%
2012 1 15,000 2.3% 1,600 1.5% 1.9%
2013 3 44,743 6.7% 4,630 4.4% 3.3%
2014 6 46,509 7.0% 6,963 6.7% 7.1%
2015 2 68,397 10.3% 12,000 11.5% 10.4%
2016 2 54,800 8.3% 8,100 7.8% 9.1%
2017 5 70,800 10.7% 12,324 11.8% 13.2%
2018 4 75,300 11.4% 15,113 14.5% 16.0%
After
2018 11 173,909 26.2% 32,875 31.5% 32.9%
------- --------- ------- -------- --------- ----------
Total 38 663,007 100% 104,331 100% 100%
======= ========= ======= ======== ========= ==========
-------
1. The operating properties have 21 tenants with 38 different lease
expiration dates. Top two tenants represent 51% of annualized base
rent.
Top three tenants represent 66% of annualized base rent.
2. Raised square footage is that portion of gross building area where our
tenants locate their computer servers. We consider raised square
footage
to be the net rentable square footage in each of our facilities.
3. One megawatt is equal to 1,000 kW.
4. The Company has executed two new leases to fully re-lease the space
covered by this expiring lease.
DUPONT FABROS TECHNOLOGY, INC.
Development Projects
As of September 30, 2009
($ in thousands)
Construction
in
Progress
& Land
Esti- Held Percen-
Property Property Gross Raised Critical mated for tage
Location Building Square Load Total Develop- Pre-
Area Feet MW Cost ment Leased
(1) (2) (3) (4) (5)
------ ------ ----- ------ ------ ------
Development Projects
on hold
--------------------
ACC5 $140,000-
Phase II Ashburn, VA 150,000 85,600 18.2 $150,000 $59,085 38%
NJ1 $200,000-
Phase I(6) Piscataway, NJ 150,000 85,600 18.2 $215,000 131,578
SC1 $240,000-
Phase I(6) Santa Clara, CA 150,000 85,600 18.2 $280,000 53,394
------- ------- ---- -------- ------
$580,000-
450,000 256,800 54.6 $645,000 244,057
------- ------- ---- -------- -------
Future Development
Projects
-------------------
CH1
Phase II Elk Grove
Village, IL 200,000 89,917 18.2 *
NJ1 Piscataway,
Phase II NJ 150,000 85,600 18.2 *
SC1 Santa Clara,
Phase II CA 150,000 85,600 18.2 *
SC2
Phase I/II Santa Clara, CA 300,000 171,200 36.4 *
ACC6
Phase I/II Ashburn, VA 240,000 155,000 31.2 *
ACC7 Ashburn, VA 100,000 50,000 10.4 *
------- ------- ----
1,140,000 637,317 132.6 81,225
--------- ------- ----- ------
Total 1,590,000 894,117 187.2 $325,282
========= ======= ===== ========
-------------
* Development costs have not yet been estimated.
1. Gross building area is the entire building area, including raised
square
footage (the portion of gross building area where our tenants' computer
servers are located), tenant common areas, areas controlled by us (such
as the mechanical, telecommunications and utility rooms) and, in some
facilities, individual office and storage space leased on an as
available
basis to our tenants.
2. Raised square footage is that portion of gross building area where our
tenants locate their computer servers. We consider raised square
footage
to be the net rentable square footage in each of our facilities.
3. Critical load (also referred to as IT load or load used by tenants'
servers or related equipment) is the power available for exclusive use
by
our tenants expressed in terms of MW or kW (1 MW is equal to 1,000 kW).
4. Includes estimated capitalization for construction and development,
including closing costs, capitalized interest and capitalized operating
carrying costs, as applicable, upon completion.
5. Amount capitalized as of September 30, 2009.
6. Construction temporarily suspended on NJ1 and SC1 and amount incurred
includes all estimated commitments.
DUPONT FABROS TECHNOLOGY, INC.
Debt Summary as of September 30, 2009
($ in thousands)
Amounts % of Total Rates(1) Maturities
(years)
-------- ---------- -------- ---------
Secured $702,996 100.0 % 4.2 % 1.5
Unsecured - - - -
-------- ------- ----- ---
Total $702,996 100.0 % 4.2 % 1.5
======== ======= ===== ===
Fixed Rate Debt:
Safari Term Loan
(2)(3) $200,000 28.4 % 6.5 % 1.9
ACC5 Loan 25,000 3.6 % 12.0 % 0.4
SC1 Loan 5,000 0.7 % 12.0 % 0.4
-------- ------- ------ ---
Fixed Rate Debt 230,000 32.7 % 7.2 % 1.7
-------- ------ ------ ---
Floating Rate Debt:
Line of Credit (2) 223,996 31.9 % 1.5 % 0.9
ACC4 Term Loan 249,000 35.4 % 3.8 % 2.1
------- ------- ------ ---
Floating Rate Debt 472,996 67.3 % 2.7 % 1.5
------- ------- ------ ---
Total $702,996 100.0 % 4.2 % 1.5
======== ======= ====== ===
Note: The Company capitalized interest of $1.8 million and $6.2 million during
the three and nine months ended September 30, 2009, respectively.
1. Rate as of September 30, 2009.
2. Collateral includes VA3, VA4, ACC2 and ACC3.
3. Rate is fixed by an interest rate swap.
Debt Maturity Schedule as of September 30, 2009
($ in thousands)
Year Fixed Floating
Rate Rate Total % of Total Rates (5)
---- ---------- -------- ------ ---------- ---------
2009 $- $- $- - -
2010 30,000(1) 223,996(3) 253,996 36.1 % 2.7 %
2011 200,000(2) 249,000(4) 449,000 63.9 % 5.0 %
------- ------- ------- ------ -----
Total $230,000 $472,996 $702,996 100.0 % 4.2 %
======== ======== ======== ======= =====
---------
1. Extendable up to four years upon satisfaction of certain customary
conditions.
2. Matures on August 7, 2011 with no extension option.
3. Amount outstanding on the Company's $275 million Line of Credit that
matures on August 7, 2010, subject to a one-year extension option
exercisable by the Company upon satisfaction of certain customary
conditions. A borrowing base initial appraised value covenant currently
limits the amount available to $244 million.
4. Matures on October 24, 2011 and includes a one-year extension option
exercisable by the Company upon satisfaction of certain customary
conditions. Includes scheduled principal amortization payments of $0.5
million in the fourth quarter of 2009 and $2.0 million in 2010.
5. Rate as of September 30, 2009.
DUPONT FABROS TECHNOLOGY, INC.
Selected Financial Covenants
9/30/09 6/30/09
------- -------
Total Debt to Gross Asset Value
(not to exceed 65%) 34% 35%
Fixed Charge Coverage ratio
(not less than 1.45) 3.60 3.56
Borrowing Base Debt Service Coverage Ratio
(not less than 1.35) 1.95 1.93
Secured Recourse Debt to Gross Asset Value
(not to exceed 15%) 5% 5%
These selected covenants relate to DuPont Fabros Technology, LP and/or its
related subsidiaries. DuPont Fabros Technology, Inc. is the general partner
of DuPont Fabros Technology, LP.
Capital Structure as of September 30, 2009
(in thousands except per share data)
Mortgage notes
payable $479,000
Line of Credit 223,996
--------
Total Debt 702,996 43.9%
Common Shares 62% 41,869
Operating Partnership
("OP") Units 38% 25,453
--- ------
Total Shares and OP Units 100% 67,322
Common Share Price at
September 30, 2009 $13.33
------
Total Equity 897,402 56.1%
------- -----
Total Market
Capitalization $1,600,398 100.0%
========== ======
DUPONT FABROS TECHNOLOGY, INC.
Common Share and OP Unit
Weighted Average Amounts Outstanding
YTD YTD
Q3 2009 Q3 2008 Q3 2009 Q3 2008
------- ------- ------- -------
Weighted Average Amounts
Outstanding for EPS Purposes:
Common Shares - basic 41,041,140 35,436,020 39,407,194 35,423,999
Shares issued from
assumed conversion of
- Restricted Shares 365,076 19,283 203,154 33
- Stock options 586,296 - 308,092 -
------- --- ------- ---
Total Common Shares - diluted 41,992,512 35,455,303 39,918,440 35,424,032
========== ========== ========== ==========
Weighted Average Amounts
Outstanding for FFO and
AFFO Purposes:
Common Shares - basic 41,041,140 35,436,020 39,407,194 35,423,999
OP Units - basic 25,638,523 31,162,271 27,236,277 31,162,271
---------- ---------- ---------- ----------
Total Common Shares and OP
Units 66,679,663 66,598,291 66,643,471 66,586,270
Share issued from
assumed conversion of
- Restricted Shares 365,076 19,283 203,154 33
- Stock options 586,296 - 308,092 -
------- --- ------- ---
Total Common Shares and OP
Units - diluted 67,631,035 66,617,574 67,154,717 66,586,303
========== ========== ========== ==========
Period Ending Amounts
Outstanding:
Common Shares 41,868,441
OP Units 25,453,394
----------
Total Common Shares and OP
Units 67,321,835
==========
DUPONT FABROS TECHNOLOGY, INC.
2009 Guidance
The earnings guidance/projections provided below are based on current
expectations and are forward-looking.
Expected Q4 Expected
2009 2009
per share per share
--------- ---------
Earnings per share and
unit - diluted $0.04 to $0.07 $0.25 to $0.27
Depreciation and amortization, net 0.22 0.84 to 0.85
-------------- --------------
FFO per share and unit - diluted (1) $0.26 to $0.29 $1.09 to $1.12
============== ==============
2009 Debt Assumptions
Weighted average debt outstanding $703 to $706 million
Weighted average interest rate 4.2%
Total interest costs $29.5 to $30.0 million
Total amortization of deferred
financing costs $7.4 million
Interest expense capitalized $(4.9) million
Deferred financing costs amortization
capitalized $(1.3) million
--------------
Total interest expense after
capitalization $30.7 to $31.2 million
======================
Note: Debt guidance assumes no new debt issued from the date of this release.
2009 Other Guidance Assumptions
Other revenues $12 to $14 million
Straight-line revenue $17 to $19 million
Below market lease amortization, net of above
market lease amortization $7 million
General and administrative expense $13 to $14 million
Estimated required REIT dividend
distribution payout $0.24 to $0.30 per share
Weighted average common shares and OP units -
diluted 67.6 million
(1) Funds from operations, or FFO, is used by industry analysts and investors
as a supplemental operating performance measure for REITs. We calculate FFO in
accordance with the definition that was adopted by the Board of Governors of
the National Association of Real Estate Investment Trusts, or NAREIT. FFO, as
defined by NAREIT, represents net income determined in accordance with GAAP,
excluding extraordinary items as defined under GAAP and gains or losses from
sales of previously depreciated operating real estate assets, plus specified
non-cash items, such as real estate asset depreciation and amortization, and
after adjustments for unconsolidated partnerships and joint ventures.
We use FFO as a supplemental performance measure because, in excluding real
estate related depreciation and amortization and gains and losses from
property dispositions, it provides a performance measure that, when compared
year over year, captures trends in occupancy rates, rental rates and operating
expenses. We also believe that, as a widely recognized measure of the
performance of equity REITs, FFO will be used by investors as a basis to
compare our operating performance with that of other REITs. However, because
FFO excludes real estate related depreciation and amortization and captures
neither the changes in the value of our properties that result from use or
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 effects and could materially impact our
results from operations, the utility of FFO as a measure of our performance is
limited.
While FFO is a relevant and widely used measure of operating performance of
equity REITs, other equity REITs may use different methodologies for
calculating FFO and, accordingly, FFO as disclosed by such other REITs may not
be comparable to our FFO. Therefore, we believe that in order to facilitate a
clear understanding of our historical operating results, FFO should be
examined in conjunction with net income as presented in the consolidated
statements of operations. FFO should not be considered as an alternative to
net income or to cash flow from operating activities (each as computed in
accordance with GAAP) or as an indicator of our liquidity, nor is it
indicative of funds available to fund our cash needs, including our ability to
pay dividends or make distributions.
SOURCE DuPont Fabros Technology, Inc.
Investor Relations, Mr. Christopher A. Warnke of DuPont Fabros Technology,
+1-202-728-0044, ext. 127
