QTS Realty Trust (QTS) Misses Q4 EPS by 30c, Revenues Beat; Offers FY20 Revenue Outlook

QTS Realty Trust (NYSE: QTS) reported Q4 EPS of ($0.24), $0.30 worse than the analyst estimate of $0.06. Revenue for the quarter came in at $123.71 million versus the consensus estimate of $120.27 million.

Additional Fourth Quarter and Full Year Highlights

• Recognized total consolidated revenues of $123.7 million and $480.8 million for the quarter and year ended December 31, 2019, respectively, an increase of 10.1% and 6.7% compared to the same periods in 2018. In addition, total consolidated revenue recognized for the quarter and year ended December 31, 2019 increased 10.2% and 13.7%, respectively, compared to total consolidated Core revenue for the same periods in 2018. Total consolidated revenues do not include QTS' pro rata share of revenue attributable to its unconsolidated joint venture of $1.9 million and $4.8 million for the quarter and year ended December 31, 2019, respectively.
• Reported Adjusted EBITDA of $66.3 million and $250.4 million for the quarter and year ended December 31, 2019, respectively, an increase of 11.8% and 14.8% compared to Core Adjusted EBITDA of $59.3 million and $218.1 million for the same periods in 2018.
• Reported Operating FFO available to common stockholders and OP unit holders of $45.7 million and $165.7 million for the quarter and year ended December 31, 2019, respectively, an increase of 14.1% and 11.0% compared to Core Operating FFO available to common stockholders and OP unit holders of $40.1 million and $149.3 million for the same periods in 2018.
• Reported Operating FFO per fully diluted share of $0.69 for the quarter ended December 31, 2019, compared to Core Operating FFO per fully diluted share of $0.69 in the same period of 2018. Reported Operating FFO per fully diluted share of $2.63 for the year ended December 31, 2019, compared to Core Operating FFO per fully diluted share of $2.57 in the same period of 2018.
• Signed new and modified renewal leases during the fourth quarter of 2019 aggregating to $27.7 million of incremental annualized rent, net of downgrades, representing the highest quarterly performance in Company history.
• Reported a Company record high annualized booked-not-billed monthly recurring revenue ("MRR") balance of $93.1 million as of December 31, 2019 compared to $79.8 million as of September 30, 2019.
• Through QTS' March 2019 forward equity offering and incremental common stock issued on a forward basis through its "at-the-market" ("ATM") equity offering program, the Company currently has access to approximately $220 million of undrawn net proceeds through sales of the aforementioned forward stock.

"2019 represented another year of strong execution for QTS highlighted by a record-setting leasing performance in both the fourth quarter and full-year. We were pleased to close out 2019 with a $93 million booked-not-billed backlog which provides solid momentum and visibility into another year of strong growth in 2020," said Chad Williams, Chairman and CEO of QTS.

Williams added, "Our focus at QTS remains on delivering consistent financial performance over both the near- and long-term while enabling the continued growth of our target hyperscale, hybrid colocation and federal customers. Through our broad footprint of cost-advantaged infrastructure, software-defined platform and leadership position in sustainability initiatives, QTS is strategically positioned to drive continued growth and stockholder value creation."

GUIDANCE:

QTS Realty Trust sees FY2020 revenue of $523-537 million, versus the consensus of $530.73 million.

For earnings history and earnings-related data on QTS Realty Trust (QTS) click here.

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