Thursday, February 17, 2011

OT - Abhella

CoreSite will be reporting earning on march 10.

The company operates seven data centers located in five of the top six North American hubs for colocation services. One Wilshire, in Los Angeles, is the premier interconnection point between North America and Asia, and the most important property in CoreSite's portfolio.

The company completed its initial public offering on September 23rd, 2010. The offering raised about $310 million, which allowed the company to deleverage significantly and gave also the opportunity to fund several growth projects, which are expected to come online by middle 2011.

Analysts, on average, forecast revenues of $ 31 million for Q4, and earnings of $ 0.22 per share.

There are several metrics that might be worth checking for a better understanding of CoreSite's financial performance.

The average customer contract has a length of more than 5 years, and renewal rates have so far been quite high, with tenants accepting, on average, to pay a premium about 24 percent higher than the previous contract (Q3 2010 data ).

Here is a quick summary of CoreSite's existing and potential data center portfolio (click to enlarge):

For proper understanding of how much of this potential will be turned into revenue generating data center space, and when, we may refer to the company's sheet presented at REITWorld 2010:

From a financial point of view, the company has no real near term obligation, as shown in this sheet:

1 comment:

abhella said...

What does "Typical time to stabilization" mean? They have a load of debt due in 2014 but it appears as if they should have that covered with growth, low churn and customers willing to sign premium long-term contracts.