CyrusOne (CONE) Tops Q3 EPS by 5c; Boosts FY16 Outlook; Announces CFO Transition

October 31, 2016 6:24 AM EDT
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CyrusOne (NASDAQ: CONE) reported Q3 FFO of $0.67, $0.05 better than the analyst estimate of $0.62. Revenue for the quarter came in at $143.8 million versus the consensus estimate of $136.3 million.

CFO Transition:

CyrusOne announced that its Chief Financial Officer, Gregory R. Andrews, will be leaving the Company effective November 30, 2016 to pursue other interests and will be succeeded by Diane M. Morefield. Ms. Morefield will join the Company as Executive Vice President and Chief Financial Officer effective November 14, 2016.

“We are very thankful to Greg for his contributions to CyrusOne which includes raising over $900 million of debt and equity capital to fund our rapid growth as well as helping to increase our enterprise value by $1.5 billion under his leadership,” commented Gary Wojtaszek, President and Chief Executive Officer of CyrusOne. “On a personal note, I wish Greg the best in his next endeavor.”

Ms. Morefield served as Executive Vice President and Chief Financial Officer of Strategic Hotels & Resorts (NYSE: BEE), a publicly traded REIT, from early 2010 until year-end 2015, when the company was sold to the Blackstone Group. During her tenure at Strategic Hotels & Resorts, revenues increased from approximately $775 million in 2010 to over $1.4 billion in 2015, an 80% increase. There, she helped grow the company’s market capitalization by 10x with a market cap in early 2010 of roughly $400 million which grew to $4 billion by year-end 2015. This growth resulted in a Total Shareholder Return (TSR) from April 2010 to December 2015 of over 150%. She was responsible for the Company’s accounting, finance, capital markets, tax, investor relations and IT, and was a member of the Company’s Executive Management Committee that oversaw the strategy and investment activity for the company. Ms. Morefield currently serves as a board member and the audit chair for Spirit Realty Capital (NYSE: SRC).

Prior to joining Strategic Hotels, Ms. Morefield served in a variety of financial, operating and investor relations roles for leading real estate organizations. She was the Chief Financial Officer of Equity International, a private equity firm controlled by Sam Zell, which invests in international real estate companies.

Before that, Ms. Morefield was a senior officer with Equity Office Properties Trust (NYSE: EOP), a publicly traded REIT, where she served as Regional Senior Vice President for EOP’s Midwest region, following her role as Senior Vice President – Investor Relations. During her tenure at EOP, the company’s revenues increased from $700 million at the IPO in July 1997 to approximately $3.5 billion by year-end 2006. In addition, she spent her early career in real estate banking with Barclays Bank. Ms. Morefield earned a BS in accountancy from the University of Illinois and a MBA from the University of Chicago, and is a CPA.

“It is with great enthusiasm that I join CyrusOne as the company continues to grow and create significant shareholder value. I look forward to being a partner to Gary and the entire CyrusOne team, capitalizing on my past experience in the REIT and banking industries,” commented Morefield.

“We are thrilled to have Diane join the CyrusOne leadership team,” said Wojtaszek. “Diane has a really impressive background in real estate – she has a proven track record in high growth organizations. With her significant REIT, financial and operational expertise, I am confident that she will play an invaluable role in helping CyrusOne achieve its business objectives.”


CyrusOne sees FY2016 FFO of $2.59-$2.62, versus prior guidance of $2.50-$2.58 and the consensus of $2.56. CyrusOne sees FY2016 revenue of $523-530 million, versus prior guidance of $520-530 million and the consensus of $526.4 million.

For earnings history and earnings-related data on CyrusOne (CONE) click here.

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