QTS Realty Trust (QTS) Misses Q1 EPS by 6c, Revenues Beat; Raises FY21 Revenues Outlook

QTS Realty Trust (NYSE: QTS) reported Q1 EPS of ($0.07), $0.06 worse than the analyst estimate of ($0.01). Revenue for the quarter came in at $148.73 million versus the consensus estimate of $145.14 million.

"We are pleased to start the year with a strong performance during the first quarter with leasing momentum and a largely pre-leased development plan that materially de-risks our financial performance for the balance of the year," said Chad Williams, Chairman and CEO of QTS.

Williams added, "The acceleration we have seen in our signed leasing activity and funnel across our target customer verticals continues to demonstrate the differentiation of our platform and supports our strategic focus on delivering near-term value creation through consistent OFFO per share growth while investing back into our business at a robust level to support strong future growth."

GUIDANCE:

QTS Realty Trust sees FY2021 revenue of $602-616 million, versus the consensus of $608.63 million.

As a result of outperformance relative to initial expectations in the first quarter of 2021 and strong year to date leasing activity, the Company is increasing its 2021 revenue guidance from a previous range of $599 million - $613 million to a new range of $602 million - $616 million. The Company's 2021 guidance assumes rental churn for the full year of between 3% and 6%.

As a result of the Company's higher revenue outlook and continued cost controls, the Company is increasing its 2021 Adjusted EBITDA guidance from a previous range of $330 million - $340 million to a new range of $332 million - $341 million. The Company is also increasing its 2021 OFFO per fully diluted share guidance from a previous range of $2.92 - $3.04 per share to a new range of $2.94 - $3.04 per share.

In addition, for the full-year 2021, QTS is increasing its guidance on cash capital expenditures from a previous range of $800 million - $900 million to a new range of $875 million - $975 million. The Company's 2021 capital expenditure guidance includes its proportionate share of cash capital expenditures associated with the unconsolidated joint venture. The Company's 2021 guidance excludes the impact of any acquisitions.

The Company's 2021 guidance includes the effects of the Company's joint venture, which is reflected as an unconsolidated joint venture on QTS' reported financial statements. Consistent with GAAP accounting standards, revenue from the unconsolidated joint venture is not included in QTS' reported consolidated GAAP financial statements. Also consistent with NAREIT-defined standards, QTS includes its proportionate ownership of non-GAAP measures such as EBITDAre and FFO from the joint venture in its reported EBITDAre and FFO results, respectively.

The Company's 2021 guidance assumes, among other things, that its facilities continue to operate and it does not experience significant work stoppages or closures, it is able to mitigate any supply chain disruptions for its development activities, and it is able to collect revenues in line with current expectations. While these are the Company's current assumptions, the COVID-19 pandemic is a continuously evolving situation and these assumptions could change, including if the duration of the pandemic is extended, which could affect outlook.

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

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