EX-99.2 3 qts-20201026x8kexx992.htm EX-99.2 Document

Exhibit 99.2
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Table of Contents
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QTS Q3 Earnings 2020
Contact: IR@qtsdatacenters.com

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Forward Looking Statements
Some of the statements contained in this document constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In particular, statements pertaining to the COVID-19 pandemic, its impact on the Company and the Company’s response thereto and to the Company’s strategy, plans, intentions, capital resources, liquidity, portfolio performance, results of operations, anticipated growth in our funds from operations and anticipated market conditions contain forward-looking statements. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters.
The forward-looking statements contained in this document reflect the Company’s current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause actual results to differ significantly from those expressed in any forward-looking statement. The Company does not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: adverse economic or real estate developments in the Company’s markets or the technology industry; obsolescence or reduction in marketability of our infrastructure due to changing industry demands; global, national and local economic conditions; risks related to the COVID-19 pandemic, including, but not limited to, the risk of business and/or operational disruptions, disruption of the Company’s customers’ businesses that could affect their ability to make rental payments to the Company, supply chain disruptions and delays in the construction or development of the Company’s data centers; risks related to our international operations; difficulties in identifying properties to acquire and completing acquisitions; the Company’s failure to successfully develop, redevelop and operate acquired properties or lines of business; significant increases in construction and development costs; the increasingly competitive environment in which the Company operates; defaults on, or termination or non-renewal of, leases by customers; decreased rental rates or increased vacancy rates; increased interest rates and operating costs, including increased energy costs; financing risks, including the Company’s failure to obtain necessary outside financing; dependence on third parties to provide Internet, telecommunications and network connectivity to the Company’s data centers; the Company’s failure to qualify and maintain its qualification as a real estate investment trust; environmental uncertainties and risks related to natural disasters; financial market fluctuations; changes in real estate and zoning laws, revaluations for tax purposes and increases in real property tax rates; and limitations inherent in our current and any future joint venture investments, such as lack of sole decision-making authority and reliance on our partners’ financial condition.
While forward-looking statements reflect the Company’s good faith beliefs, they are not guarantees of future performance. Any forward-looking statement speaks only as of the date on which it was made. The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, the Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020, as well as other periodic reports the Company files with the Securities and Exchange Commission, many of which should be interpreted as being heightened as a result of the ongoing COVID-19 pandemic and the actions taken to contain the pandemic or mitigate its impact.
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Company Profile
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Consolidated Balance Sheets
(unaudited and in thousands except share data)
September 30, 2020 (1)
December 31, 2019 (1)
ASSETS
Real Estate Assets
Land$164,816 $130,605 
Buildings, improvements and equipment2,681,827 2,178,901 
Less: Accumulated depreciation(662,454)(558,560)
2,184,189 1,750,946 
Construction in progress (2)
957,592 920,922 
Real Estate Assets, net3,141,781 2,671,868 
Investments in unconsolidated entity22,883 30,218 
Operating lease right-of-use assets, net52,816 57,141 
Cash and cash equivalents21,998 15,653 
Rents and other receivables, net87,479 81,181 
Acquired intangibles, net71,367 81,679 
Deferred costs, net (3)
57,058 52,363 
Prepaid expenses11,281 10,586 
Goodwill173,843 173,843 
Other assets, net (4)
49,046 49,001 
TOTAL ASSETS$3,689,552 $3,223,533 
LIABILITIES
Unsecured credit facility, net (5)
$1,217,356 $1,010,640 
Senior notes, net of debt issuance costs (5)
396,121 395,549 
Finance leases and mortgage notes payable44,911 46,876 
Operating lease liabilities59,642 64,416 
Accounts payable and accrued liabilities173,793 142,547 
Dividends and distributions payable37,969 34,500 
Advance rents, security deposits and other liabilities21,833 18,027 
Derivative liabilities60,032 26,609 
Deferred income taxes637 749 
Deferred income55,422 39,169 
TOTAL LIABILITIES2,067,716 1,779,082 
EQUITY
7.125% Series A cumulative redeemable perpetual preferred stock: $0.01 par value (liquidation preference $25.00 per share), 4,600,000 shares authorized, 4,280,000 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively (6)
103,212 103,212 
6.50% Series B cumulative convertible perpetual preferred stock: $0.01 par value (liquidation preference $100.00 per share), 3,162,500 shares authorized, issued and outstanding as of September 30, 2020 and December 31, 2019, respectively (7)
304,223 304,223 
Common stock: $0.01 par value, 450,133,000 shares authorized, 64,442,343 and 58,227,523 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively
644 582 
Additional paid-in capital1,614,508 1,330,444 
Accumulated other comprehensive income (loss)(56,480)(24,642)
Accumulated dividends in excess of earnings(457,993)(376,002)
Total stockholders’ equity1,508,114 1,337,817 
Noncontrolling interests113,722 106,634 
TOTAL EQUITY1,621,836 1,444,451 
TOTAL LIABILITIES AND EQUITY$3,689,552 $3,223,533 
_______________________________________________________
(1)The balance sheet at September 30, 2020 and December 31, 2019, has been derived from the consolidated financial statements at that date, but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements.
(2)As of September 30, 2020, construction in progress included $199.5 million related to land acquisitions whereby the initiation of development activities has begun to prepare the property for its intended use.
(3)As of September 30, 2020 and December 31, 2019, deferred costs, net included $6.5 million and $8.0 million of deferred financing costs net of amortization, respectively, and $50.5 million and $44.3 million of deferred leasing costs net of amortization, respectively.
(4)As of September 30, 2020 and December 31, 2019, other assets, net included $44.0 million and $45.8 million of corporate fixed assets, respectively, primarily relating to corporate offices, leasehold improvements and product related assets.
(5)Debt issuance costs, net related to the Senior Notes and term loan portion of the Company’s unsecured credit facility aggregating $9.5 million and $10.8 million at September 30, 2020 and December 31, 2019, respectively, have been netted against the related debt liability line items for both periods presented.
(6)As of September 30, 2020, the total liquidation preference of the Series A Preferred Stock was $107.0 million, calculated as $25.00 liquidation preference per share times 4,280,000 shares outstanding.
(7)As of September 30, 2020, the total liquidation preference of the Series B Preferred Stock was $316.3 million, calculated as $100.00 liquidation preference per share times 3,162,500 shares outstanding.
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Consolidated Statements of Operations
(unaudited and in thousands except share and per share data)
Three Months EndedNine Months Ended
September 30,
2020
June 30, 2020September 30,
2019
September 30,
20202019
Revenues:
Rental (1)
$133,782 $125,996 $121,475 $379,860 $345,841 
Other (2)
3,756 5,644 3,780 15,611 11,270 
Total revenues137,538 131,640 125,255 395,471 357,111 
Operating expenses:
Property operating costs43,979 40,349 44,730 125,109 117,403 
Real estate taxes and insurance4,005 4,106 3,713 12,023 10,435 
Depreciation and amortization51,378 47,554 42,875 144,002 123,144 
General and administrative (3)
22,082 21,391 19,504 64,156 59,519 
Transaction, integration, and impairment costs1,078 381 827 1,675 3,080 
Total operating expenses122,522 113,781 111,649 346,965 313,581 
Gain on sale of real estate, net— — — — 13,408 
Operating income15,016 17,859 13,606 48,506 56,938 
Other income and expense:
Interest income— 22 103 
Interest expense(7,516)(6,924)(6,724)(21,602)(20,329)
Other income (expense)— — 370 159 330 
Equity in net loss of unconsolidated entity(366)(590)(317)(1,633)(992)
Income before taxes7,134 10,347 6,957 25,432 36,050 
Tax benefit (expense) of taxable REIT subsidiaries(227)(138)(369)(196)(779)
Net income6,907 10,209 6,588 25,236 35,271 
Net (income) loss attributable to noncontrolling interests (4)
18 (317)49 (408)(1,593)
Net income attributable to QTS Realty Trust, Inc.$6,925 $9,892 $6,637 $24,828 $33,678 
Preferred stock dividends(7,045)(7,045)(7,045)(21,135)(21,135)
Net income (loss) attributable to common stockholders$(120)$2,847 $(408)$3,693 $12,543 
Net income (loss) per share attributable to common shares:
Basic (5)
$(0.07)$(0.05)$(0.05)$(0.13)$0.12 
Diluted (5)
(0.07)(0.05)(0.05)(0.13)0.12 
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(1)Represents lease revenue, inclusive of recoveries from customers as well as straight line rent. Recoveries from customers was $14.9 million, $12.5 million, and $17.6 million for the three months ended September 30, 2020, June 30, 2020, and September 30, 2019, respectively, and $39.7 million and $41.0 million for the nine months ended September 30, 2020 and 2019, respectively. Straight line rent was $7.4 million, $5.8 million and $2.3 million for the three months ended September 30, 2020, June 30, 2020 and September 30, 2019, respectively, and $17.0 million and $4.8 million for the nine months ended September 30, 2020 and 2019, respectively.
(2)Includes revenue from managed services, sales of scrap metals and other unused materials, management fees, service fees, development fees and various other non-rental revenue items.
(3)Includes personnel costs, sales and marketing costs, professional fees, travel costs, product investment costs and other corporate general and administrative expenses. General and administrative expenses were 16.1%, 16.2%, and 15.6% of total revenues for the three months ended September 30, 2020, June 30, 2020 and September 30, 2019, respectively, and 16.2% and 16.7% of total revenues for the nine months ended September 30, 2020 and 2019, respectively.
(4)The weighted average noncontrolling ownership interest of QualityTech, LP was 9.7%, 9.9% and 10.7% for the three months ended September 30, 2020, June 30, 2020 and September 30, 2019, respectively, and 10.0% and 10.9% for the nine months ended September 30, 2020 and 2019, respectively.
(5)Basic and diluted net income (loss) per share were calculated using the two-class method.
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Consolidated Statements of Comprehensive Income (Loss)
(unaudited and in thousands)
Three Months EndedNine Months Ended
September 30, 2020June 30, 2020September 30, 2019September 30,
20202019
Net income$6,907 $10,209 $6,588 $25,236 $35,271 
Other comprehensive income (loss):
Foreign currency translation adjustment gain (loss)166 64 (426)(360)
Increase (decrease) in fair value of derivative contracts5,500 (3,641)(5,733)(34,856)(34,192)
Reclassification of other comprehensive income to utilities expense197 410 — 961 — 
Reclassification of other comprehensive income to interest expense3,352 2,703 (235)6,813 (1,200)
Comprehensive income (loss)16,122 9,745 194 (1,839)(481)
Comprehensive (income) loss attributable to noncontrolling interests(1,626)(1,022)(22)183 52 
Comprehensive income (loss) attributable to QTS Realty Trust, Inc.$14,496 $8,723 $172 $(1,656)$(429)
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Summary of Financial Data
(unaudited and in thousands, except operating portfolio statistics data and per share data)
This summary includes certain non-GAAP financial measures that management believes are helpful in understanding the Company’s business as further described in the Appendix. The Company does not, nor does it suggest investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, GAAP financial information or as an expectation of future performance of the Company’s business. The Company believes that the presentation of non-GAAP financial measures provide meaningful supplemental information to both management and investors that is indicative of the Company’s current operations and its business. The Company has included a reconciliation of this additional information to the most comparable GAAP measure in the summary financial information below.
Three Months EndedNine Months Ended
September 30,
2020
June 30, 2020September 30,
2019
September 30,
Summary of Results20202019
Total revenue (1)
$137,538 $131,640 $125,255 $395,471 $357,111 
Net income$6,907 $10,209 $6,588 $25,236 $35,271 
Net income (loss) attributable to common stockholders$(120)$2,847 $(408)$3,693 $12,543 
Net income (loss) per share attributable to basic common shares (2)
$(0.07)$(0.05)$(0.05)$(0.13)$0.12 
Net income (loss) per share attributable to diluted common shares (2)
$(0.07)$(0.05)$(0.05)$(0.13)$0.12 
FFO available to common stockholders & OP unit holders (3)
$48,620 $48,349 $40,198 $140,699 $116,914 
Note: All metrics in the following tables include QTS’ pro rata share of results from the unconsolidated joint venture.
Three Months EndedNine Months Ended
Other Data (including QTS' pro rata share of unconsolidated JV, excl. total revenue)September 30,
2020
June 30, 2020September 30,
2019
September 30,
20202019
Total revenue (1)
$137,538 $131,640 $125,255 $395,471 $357,111 
MRR (at period end)$36,913 $36,091 $32,979 $36,913 $32,979 
NOI$90,734 $88,112 $77,684 $261,289 $231,221 
NOI as a % of revenue66.0 %66.9 %62.0 %66.1 %64.7 %
Adjusted EBITDA$75,986 $72,800 $63,001 $215,555 $184,081 
Adjusted EBITDA as a % of revenue55.2 %55.3 %50.3 %54.5 %51.5 %
Operating FFO available to common stockholders & OP unit holders$49,698 $48,730 $41,025 $142,374 $119,994 
Operating FFO per diluted share$0.70 $0.70 $0.65 $2.06 $1.93 
Annualized ROIC11.6 %11.9 %11.9 %11.8 %12.2 %
Balance Sheet Data (including QTS' pro rata share of unconsolidated JV) (4)
September 30,
2020
December 31,
2019
Total indebtedness, net of cash and cash equivalents $1,690,497 $1,482,260 
Indebtedness to last quarter annualized Adjusted EBITDA5.6x5.6x
Indebtedness to last quarter annualized Adjusted EBITDA pro forma for the effects of forward equity sales4.1x(5)4.8x(6)
Indebtedness to undepreciated real estate assets43.7 %45.3 %
Indebtedness to Implied Enterprise Value25.2 %27.0 %
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(1)Excludes QTS’ pro rata share of the unconsolidated joint venture revenue. Total unconsolidated JV revenue at the JV’s 100% share was $4.1 million, $3.4 million and $2.3 million for the three months ended September 30, 2020, June 30, 2020 and September 30, 2019 respectively, and $10.6 million and $5.9 million for the nine months ended September 30, 2020 and 2019, respectively. QTS’ 50% pro rata share of unconsolidated JV revenue was $2.0 million, $1.8 million and $1.2 million for the three months ended September 30, 2020, June 30, 2020 and September 30, 2019, respectively, and $5.3 million and $2.9 million for the nine months ended September 30, 2020 and 2019, respectively.
(2)Basic and diluted net income (loss) per share were calculated using the two-class method.
(3)Includes QTS’ pro rata share of results from its unconsolidated entity.
(4)The Company has excluded associated debt issuance costs from the Total indebtedness line item for both periods presented. Therefore, the total debt amount, as well as calculations based on the total debt amount, represents the full amount of debt that will be repaid less the amount of cash and cash equivalents on hand.
(5)Represents the Company’s leverage ratio pro forma for the effects of approximately $456 million in net proceeds available under forward equity agreements executed through October 26, 2020, the date of this report. The Company expects to use proceeds from these forward equity agreements to fund future capital expenditures.
(6)Represented the Company’s leverage ratio pro forma for the effects of approximately $220 million in net proceeds available under forward equity agreements executed through February 18, 2020, the release date of the December 31, 2019 earnings report.
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Operating Portfolio Statistics
(including unconsolidated JV at the JV’s 100% share)
September 30,
2020
December 31,
2019
Built out square footage:
Raised floor1,890,5701,659,137
Leasable raised floor1,514,1531,340,755
Leased raised floor1,419,5991,226,188
Data center % occupied93.8 %91.5 %
Total Raw Shell:
Total7,497,1957,188,833
Basis-of-design raised floor space (1)
3,384,5783,213,799
Data center properties2724
Basis of design raised floor % developed55.9 %51.6 %
Data center raised floor % owned (2)
96.6 %96.0 %
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(1)See definition in Appendix.
(2)Includes the Santa Clara facility which is subject to a long-term ground lease, includes the unconsolidated JV property at the JV's 100% share, and excludes facilities subject to finance lease obligations. Had the Santa Clara facility been excluded as an owned facility, the owned data center raised floor percentage would be 93.4% and 92.4% at September 30, 2020 and December 31, 2019, respectively.
2020 Guidance
2020 Revised GuidancePrevious 2020 GuidanceOriginal 2020 Guidance
($ in millions except per share amounts)LowHighLowHighLowHigh
Revenue$531 $537 $523 $537 $523 $537 
Adjusted EBITDA$288 $293 $280 $290 $275 $285 
Operating FFO per fully diluted share$2.75 $2.83 $2.73 $2.83 $2.69 $2.83 
As a result of strong year to date leasing activity, the Company has outperformed its initial expectations for recurring revenue and is increasing its previously announced revenue guidance range of $523 million - $537 million to a new range of $531 million - $537 million, which assumes annual rental churn as previously announced of between 3% and 5%.
Due to continued outperformance in recurring revenue and successful cost management, the Company is increasing its 2020 Adjusted EBITDA guidance from a previous range of $280 million - $290 million to a new range of $288 million - $293 million. As disclosed in the previous quarter, the Company’s revised Adjusted EBITDA outlook includes a full-year aggregate benefit of approximately $2 million - $3 million related to lower than expected corporate travel and utility expense as a result of the ongoing effects of COVID-19.
The Company is increasing its 2020 OFFO per fully diluted share guidance from a previous range of $2.73 - $2.83 per share to a new range of $2.75 - $2.83 per share to reflect its higher Adjusted EBITDA outlook and updated capital development plan.
The Company is increasing its 2020 cash paid for capital expenditures guidance (excluding acquisitions and including its proportionate share of cash capital expenditures associated with the unconsolidated entity) as a result of strong year to date signed leasing activity that has resulted in a $130.6 million booked-not-billed annualized MRR backlog as of September 30, 2020. The Company is increasing its 2020 cash paid for capital expenditures guidance from a previous range of $650 million - $750 million to a new range of $700 million - $800 million.
The Company’s 2020 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, this is an evolving situation and these assumptions could change, including if the duration of the pandemic is extended, which could affect outlook.
QTS does not provide reconciliations for the non-GAAP financial measures included in its guidance provided above due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including net income (loss) and adjustments that could be made for restructuring costs, transaction costs, lease exit costs, asset impairments and gain (loss) on disposals and other charges as those amounts are subject to significant variability based on future transactions that are not yet known, the amount of which, based on historical experience, could be significant.
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Reconciliations of Return on Invested Capital (ROIC)
(unaudited and in thousands)
Return on Invested Capital (“ROIC”) is a non-GAAP measure that provides additional information to users of the financial statements. Management believes ROIC is a helpful metric for users of the financial statements to gauge the Company's performance of its business against the capital it has invested in the business.
ROIC (including QTS' pro rata share of unconsolidated JV)Three Months EndedNine Months Ended
September 30,
2020
June 30, 2020September 30,
2019
September 30,
20202019
NOI (1) (2)
$90,734$88,112$77,684$261,289$231,221
Annualized NOI 362,936352,448310,736348,385308,295
Average undepreciated real estate assets and other net fixed assets placed in service3,117,3752,962,9952,612,1802,957,6372,519,579
Annualized ROIC11.6 %11.9 %11.9 %11.8 %12.2 %
________________________________________________________
(1)Includes facility level G&A expense allocation charges of 4% of cash revenue for all facilities. These allocated charges aggregated to $5.1 million, $4.8 million and $4.8 million for the three months ended September 30, 2020, June 30, 2020 and September 30, 2019 respectively, and $14.6 million and $13.9 million for the nine months ended September 30, 2020 and 2019, respectively.
(2)NOI includes QTS’ pro rata share of NOI from the unconsolidated joint venture.
As ofAs of
Calculation of Average Undepreciated Real Estate Assets and Other Net Fixed Assets Placed in ServiceSeptember 30,
2020
June 30, 2020September 30,
2019
September 30,
20202019
Real Estate Assets, net$3,141,781 $2,988,744 $2,571,589 $3,141,781 $2,571,589 
Less: Construction in progress(957,592)(976,257)(843,754)(957,592)(843,754)
Plus: Accumulated depreciation662,454 623,915 555,562 662,454 555,562 
Plus: Goodwill173,843 173,843 173,843 173,843 173,843 
Plus: Other fixed assets, net36,940 38,495 44,789 36,940 44,789 
Plus: Acquired intangibles, net (1)
60,723 63,925 72,455 60,723 72,455 
Plus: Leasing Commissions, net50,526 47,741 42,082 50,526 42,082 
Plus: Assets placed in service in unconsolidated JV (2)
53,991 51,678 42,439 53,991 42,439 
Total as of period end$3,222,666 $3,012,084 $2,659,005 $3,222,666 $2,659,005 
Average undepreciated real estate assets and other net fixed assets as of reporting period (3)
$3,117,375 $2,962,995 $2,612,180 $2,957,637 $2,519,579 
________________________________________________________
(1)Net of acquired intangible liabilities and deferred tax liabilities.
(2)Represents QTS’ basis in the assets in the JV which were $54.0 million as of September 30, 2020 (calculated as the cost basis of the assets contributed for in serviced phases of $109.2 million less the equity contribution of the JV partner and the JV partner’s portion of debt of $55.2 million), $51.7 million as of June 30, 2020 (calculated as the cost basis of the assets contributed for in serviced phases of $104.6 million less the equity contribution of the JV partner and the JV partner’s portion of debt of $52.9 million) and $42.4 million as of September 30, 2019 (calculated as the cost basis of the assets contributed for in serviced phases of $86.1 million less the equity contribution of the JV partner and the JV partner’s portion of debt of $43.7 million).
(3)Calculated by using average quarterly balance of each account.
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Implied Enterprise Value and Weighted Average Shares
Implied Enterprise Value as of September 30, 2020:
Shares or Equivalents
Outstanding
Market Price or Liquidation Value as of
September 30, 2020
Market Capitalization (in thousands)
Class A Common Stock64,313,935 $63.02 $4,053,064 
Class B Common Stock128,408 63.02 8,092 
Total Shares Outstanding64,442,343 
Units of Limited Partnership Interest (1)
6,708,799 63.02 422,789 
Options to purchase Class A Common Stock and performance units (2)
1,078,132 63.02 67,944 
Effect of Class A common stock associated with forward equity sale (3)
478,623 63.02 30,163 
Fully Diluted Total Shares and Units of Limited Partnership Interest outstanding as of September 30, 2020:72,707,897 
Liquidation value of Series A Preferred Stock4,280,000 25.00 107,000 
Liquidation value of Series B Convertible Preferred Stock3,162,500 100.00 316,250 
Total Equity$5,005,302 
Total Indebtedness (4)
1,690,497 
Implied Enterprise Value$6,695,799 
________________________________________________________
(1)Includes 50,600 of operating partnership units representing the “in the money” value of Class O LTIP units on an “as if” converted basis as of September 30, 2020.
(2)Represents options to purchase shares of Class A Common Stock of QTS Realty Trust, Inc. representing the “in the money” value of options on an “as if” converted basis and the value of performance awards on an “as if” converted basis as of September 30, 2020.
(3)Represents the “in the money” value of the forward equity shares on an “as if” converted basis as of September 30, 2020.
(4)Excludes all debt issuance costs reflected as a reduction to liabilities at September 30, 2020 representing the full amount of debt that will be repaid, less the amount of cash and cash equivalents on hand. This also includes the Company’s pro rata share of unconsolidated joint venture debt, net of its pro rata share of cash on hand at the joint venture.
The following table presents the weighted average fully diluted shares for the three and nine months ended September 30, 2020:
Three Months EndedNine Months Ended
September 30, 2020September 30, 2020
Weighted average shares outstanding - basic61,634,637 60,258,796 
Effect of Class A partnership units (1)
6,658,199 6,666,578 
Effect of Class O units on an "as if" converted basis (1)
50,600 44,815 
Effect of options to purchase Class A common stock and performance units on an "as if" converted basis (2)
1,135,884 1,020,560 
Effect of Class A common stock associated with forward equity sale (3)
1,451,412 1,050,479 
Weighted average shares outstanding - diluted (4)
70,930,732 69,041,228 
________________________________________________________
(1)The Class A units and Class O units represent limited partnership interests in the Operating Partnership.
(2)The average share price for the three and nine months ended September 30, 2020 was $66.24 and $61.43, respectively.
(3)Represents the weighted average “in the money” value of the forward equity shares on an “as if” converted basis.
(4)Series B Convertible Preferred stock was not incorporated on an “as if” converted basis as the conversion would have been antidilutive for the period presented.
10
QTS Q3 Earnings 2020
Contact: IR@qtsdatacenters.com

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Data Center Properties
The table below presents an overview of the portfolio of data center properties that the Company owns or leases, referred to herein as our data center properties, based on information as of September 30, 2020.
Net Rentable Square Feet (Operating NRSF) (1)
Properties
Year
Acquired(2)
Gross
Square
Feet (3)
Raised
Floor (4)
Office &
Other (5)
Supporting
Infrastructure (6)
Total
%
Occupied(7)
Annualized
Rent (8)
Available
Utility
Power
(MW) (9)
Basis of
Design
("BOD")
NRSF
Current
Raised
Floor as a
% of BOD
Richmond, VA20101,318,353 117,309 51,093 131,654 300,056 85.1 %$35,021,750 110 557,309 21.0 %
Atlanta, GA (DC - 1) (10)
2006968,695 527,186 36,953 364,815 928,954 98.8 %122,157,934 72 527,186 100.0 %
Irving, TX2013698,000 208,114 15,300 228,656 452,070 95.1 %54,226,439 140 275,701 75.5 %
Princeton, NJ2014553,930 58,157 2,229 111,405 171,791 100.0 %10,514,807 22 158,157 36.8 %
Atlanta, GA (DC-2) (11)
2018495,000 37,839 9,250 34,698 81,787 100.0 %604,800 100 240,000 15.8 %
Chicago, IL2014474,979 87,500 3,508 88,422 179,430 91.0 %23,393,455 56 215,855 40.5 %
Ashburn, VA (DC-1) (12)
2017445,000 140,586 13,199 145,936 299,721 96.0 %10,710,780 50 178,000 79.0 %
Suwanee, GA2005369,822 212,975 8,697 107,128 328,800 91.0 %60,483,084 36 212,975 100.0 %
Piscataway, NJ2016360,000 111,263 19,243 110,479 240,985 94.9 %22,364,575 111 176,000 63.2 %
Fort Worth, TX2016261,836 71,147 17,232 125,794 214,173 96.3 %5,854,763 50 80,000 88.9 %
Hillsboro, OR2017158,000 16,563 1,000 14,228 31,791 100.0 %1,511,964 30 85,000 19.5 %
Santa Clara, CA (13)
2007135,322 59,905 1,238 45,094 106,237 90.2 %23,547,632 11 80,940 74.0 %
Sacramento, CA201292,644 54,595 2,794 23,916 81,305 45.2 %11,102,123 54,595 100.0 %
Dulles, VA (14)
201787,159 30,545 5,997 32,892 69,434 93.4 %18,052,231 13 48,270 63.3 %
Leased facilities (15)
2006 & 2015190,875 62,274 18,650 41,901 122,825 83.8 %23,863,584 14 82,886 75.1 %
Other (16)
Misc.459,549 61,012 49,337 77,441 187,790 78.7 %14,621,632 97 180,380 33.8 %
7,069,164 1,856,970 255,720 1,684,459 3,797,149 93.6 %$438,031,553 920 3,153,254 58.9 %
New Property Development
Ashburn, VA (DC - 2) (17)
2017310,000 — — — — — %— — 165,000 — %
Unconsolidated Properties - at the Entity's 100% Share (18)
Manassas, VA2018118,031 33,600 12,663 39,044 85,307 100.0 %$9,856,599 135 66,324 50.7 %
Total Properties7,497,195 1,890,570 268,383 1,723,503 3,882,456 93.8 %$447,888,152 1,055 3,384,578 55.9 %
________________________________________________________
(1)Operating NRSF represents the total square feet of a building that is currently leased or available for lease plus developed supporting infrastructure, based on engineering drawings and estimates, but does not include space held for redevelopment or space used for the Company’s own office space.
(2)Represents the year a property was acquired or, in the case of a property under lease, the year the Company’s initial lease commenced for the property. 
(3)With respect to the Company’s owned properties, gross square feet represents the entire building area. With respect to leased properties, gross square feet represents that portion of the gross square feet subject to our lease. This includes 424,773 square feet of QTS office and support space, which is not included in operating NRSF.
(4)Represents management’s estimate of the portion of net rentable square feet (“NRSF”) of the facility with available power and cooling capacity that is currently leased or readily available to be leased to customers as data center space based on engineering drawings.
(5)Represents the operating NRSF of the facility other than data center space (typically office and storage space) that is currently leased or available to be leased.
(6)Represents required data center support space, including mechanical, telecommunications and utility rooms, as well as building common areas.
(7)Calculated as data center raised floor that is subject to a signed lease for which billing has commenced divided by leasable raised floor based on the current configuration of the properties, expressed as a percentage.
(8)The Company defines annualized rent as MRR multiplied by 12. The Company calculates MRR as monthly contractual revenue under executed contracts as of a particular date, but excludes customer recoveries, deferred set up fees, variable related revenues, non-cash revenues and other one-time revenues. MRR does not include the impact from booked-not-billed contracts as of a particular date, unless otherwise specifically noted. This amount reflects the annualized cash rental payments. It does not reflect the accounting associated with any free rent, rent abatements or future scheduled rent increases and also excludes operating expense and power reimbursements.
(9)Represents installed utility power and transformation capacity that is available for use by the facility as of September 30, 2020.
(10)This property was formerly known as “Atlanta, GA (Metro)” but has been renamed “Atlanta, GA (DC-1)” to distinguish between the existing data center and the recently developed data center shown as “Atlanta, GA (DC – 2)”.
(11)Represents the newly developed data center building at our Atlanta, GA campus.
(12)This property was formerly known as “Ashburn, VA” but has been renamed “Ashburn, VA (DC-1)” to distinguish between the existing data center and the new property development shown as “Ashburn, VA (DC – 2)” within the new property development section.
(13)Subject to long-term ground lease.
(14)The Dulles campus has two data center buildings and the Company is currently relocating customers from the smaller and older facility to the newer facility in an effort to optimize its operating cost structure.
(15)Includes 7 facilities. All facilities are leased, including those subject to finance leases.
(16)Consists of Miami, FL; Lenexa, KS; Overland Park, KS; Eemshaven, Netherlands and Groningen, Netherlands facilities.
(17)Represents the development of a new data center building in our Ashburn, VA market.
(18)Represents the Company’s unconsolidated joint venture at the JV’s 100% share. QTS’ pro rata share of the JV is 50%.
11
QTS Q3 Earnings 2020
Contact: IR@qtsdatacenters.com

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Development Costs Summary
(in millions, except NRSF data)
During the third quarter of 2020, the Company brought online approximately 26 megawatts of gross power and approximately 120,000 net rentable square feet (“NRSF”) of raised floor and customer specific capital at its Atlanta (DC - 2), Ashburn (DC - 1), Irving, Fort Worth, Atlanta-Suwanee and Netherlands facilities at an aggregate cost of approximately $188.1 million.
For the nine months ended September 30, 2020, excluding the Company’s share of capital at the joint venture, the Company brought online approximately 53 megawatts of gross power and approximately 222,000 NRSF of raised floor and customer specific capital at its Ashburn (DC -1), Atlanta (DC - 1), Atlanta (DC - 2), Irving, Fort Worth, Atlanta-Suwanee, Hillsboro, Chicago, Piscataway and Netherlands facilities at an aggregate cost of approximately $484.6 million. 

Additionally, during the nine months ended September 30, 2020, the joint venture brought online the third phase at the Manassas facility, representing approximately four megawatts of gross power and approximately 11,000 NRSF of raised floor at an aggregate cost of approximately $22 million at the joint venture’s 100% share, of which the Company’s pro rata share was approximately $11 million. The joint venture intends to bring additional space and power into service as incremental development at the Manassas facility takes place and future phases are delivered to the customer.
The under construction table below summarizes the Company’s outlook for development projects which it expects to complete by December 31, 2020 (in millions).
Under Construction Costs (1)
Properties
Actual (2)
Estimated Cost to Completion (3)
TotalExpected Completion date
Atlanta, GA (DC - 2) (4)
$42 $$50 Q4 2020
Richmond, VA32 37 Q4 2020
Ashburn, VA (DC - 1) (5)
33 35 Q4 2020
Hillsboro, OR11 13 Q4 2020
Chicago, ILQ4 2020
Piscataway, NJQ4 2020
Totals$128 $22 $150 
________________________________________________________
(1)In addition to projects currently under construction, the Company’s near-term development projects are expected to be delivered in a modular manner, and the Company currently expects to invest additional capital to complete these near term projects. The ultimate timing and completion of, and the commitment of capital to, the Company’s future development projects are within the Company’s discretion and will depend upon a variety of factors, including the actual contracts executed, availability of financing and the Company’s estimation of the future market for data center space in each particular market.
(2)Represents actual costs under construction through September 30, 2020. In addition to the $128 million of construction costs incurred through September 30, 2020 for development expected to be completed by December 31, 2020, as of September 30, 2020 the Company had incurred $830 million of additional costs (including acquisition costs and other capitalized costs) for other development projects that are expected to be completed after December 31, 2020.
(3)Represents management’s estimate of the additional costs required to complete the current NRSF under development. There may be an increase in costs if customers’ requirements exceed the Company’s current basis of design.
(4)Represents development associated with the newly developed data center building at our Atlanta, GA campus.
(5)This property was formerly known as “Ashburn, VA” but has been renamed “Ashburn, VA (DC-1)” to distinguish between the existing data center and the new property development labeled “Ashburn, VA (DC – 2)” depicted in other places within this document.
12
QTS Q3 Earnings 2020
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Development Summary
(in millions, except NRSF data)
The following development table presents an overview of the Company’s development pipeline, based on information as of September 30, 2020. This table shows the Company’s ability to increase its raised floor of 1.9 million square feet as of September 30, 2020 to 3.4 million square feet, exclusive of development capacity on adjacent land holdings.
Raised Floor NRSF
Overview as of September 30, 2020
PropertiesCurrent
NRSF in
Service
Under
Construction (1)
Future
Available (2)
Basis of
Design NRSF
Approximate
Adjacent Acreage
of Land (3)
Richmond, VA117,309 22,342 417,658 557,309 182.2 
Atlanta, GA (DC - 1) (4)
527,186 — — 527,186 — 
Irving, TX208,114 — 67,587 275,701 29.4 
Princeton, NJ58,157 — 100,000 158,157 65.0 
Atlanta, GA (DC - 2) (5)
37,839 18,000 184,161 240,000 50.3 
Chicago, IL87,500 10,000 118,355 215,855 23.0 
Ashburn, VA (DC - 1) (6)
140,586 14,000 23,414 178,000 34.9 
Suwanee, GA212,975 — — 212,975 15.4 
Piscataway, NJ111,263 7,000 57,737 176,000 — 
Fort Worth, TX71,147 — 8,853 80,000 26.5 
Hillsboro, OR16,563 7,000 61,437 85,000 82.7 
Santa Clara, CA59,905 — 21,035 80,940 — 
Sacramento, CA54,595 — — 54,595 — 
Dulles, VA30,545 — 17,725 48,270 — 
Leased facilities (7)
62,274 — 20,612 82,886 — 
Phoenix, AZ— — — — 84.2 
Manassas, VA— — — — 87.1 
Other (8)
61,012 — 119,368 180,380 23.5 
1,856,970 78,342 1,217,942 3,153,254 704.2 
New Property Development
Ashburn, VA (DC - 2) (9)
— — 165,000 165,000 28.0 
Unconsolidated JV Properties - at the JV's 100% Share (10)
Manassas, VA33,600 — 32,724 66,324 — 
1,890,570 78,342 1,415,666 3,384,578 732.2 
________________________________________________________
(1)Reflects NRSF at a facility for which the initiation of substantial activities has begun to prepare the property for its intended use on or before December 31, 2020.
(2)Reflects NRSF at a facility for which the initiation of substantial activities has begun to prepare the property for its intended use after December 31, 2020.
(3)The total cost basis of adjacent land, which is land available for the future development, is approximately $231.6 million, of which approximately $198.4 million is included in Construction in Progress on the consolidated balance sheet. The Basis of Design NRSF does not include any build-out on the available land.
(4)This property was formerly known as “Atlanta, GA (Metro)” but has been renamed “Atlanta, GA (DC-1)” to distinguish between the existing data center and the newly developed data center shown as “Atlanta, GA (DC – 2).”
(5)Represents the newly developed data center building at our Atlanta, GA campus.
(6)This property was formerly known as “Ashburn, VA” but has been renamed “Ashburn, VA (DC-1)” to distinguish between the existing data center and the new property development shown as “Ashburn, VA (DC – 2)” within the new property development section.
(7)Includes 7 facilities. All facilities are leased, including those subject to finance leases.
(8)Consists of Miami, FL; Lenexa, KS; Overland Park, KS; Eemshaven, Netherlands and Groningen, Netherlands facilities.
(9)Represents the development of a new data center building in our Ashburn, VA market.
(10)Represents the Company’s unconsolidated joint venture at the JV’s 100% share. QTS’ pro rata share of the JV is 50%.
13
QTS Q3 Earnings 2020
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NOI by Facility and Capital Expenditure Summary
(unaudited and in thousands)
The Company calculates net operating income, or NOI, as net income (loss) (computed in accordance with GAAP), excluding: interest expense, interest income, tax expense (benefit) of taxable REIT subsidiaries, depreciation and amortization, write-off of unamortized deferred financing costs, other (income) expense, debt restructuring costs, transaction and integration costs, gain (loss) on sale of real estate, restructuring costs, general and administrative expenses and similar adjustments for unconsolidated entities. The Company believes that NOI is another metric that is often utilized to evaluate returns on operating real estate from period to period and also, in part, to assess the value of the operating real estate.
The breakdown of NOI by facility is shown below:
Three Months EndedNine Months Ended
September 30,June 30,September 30,September 30,
20202020201920202019
Breakdown of NOI by facility:
Atlanta (DC - 1) data center (1)
$26,579 $26,843 $23,967 $79,524 $71,102 
Atlanta-Suwanee data center12,084 12,592 11,852 37,478 35,835 
Richmond data center6,657 6,436 8,195 19,369 26,674 
Irving data center11,361 11,033 11,250 33,806 34,034 
Dulles data center3,217 3,188 2,890 9,563 8,652 
Leased data centers (2)
1,697 1,818 2,273 5,398 6,908 
Santa Clara data center2,289 2,391 1,640 7,275 5,454 
Piscataway data center4,530 4,204 3,139 12,369 10,077 
Princeton data center2,622 2,476 2,481 7,603 7,428 
Sacramento data center1,515 1,422 1,535 4,534 4,657 
Chicago data center4,759 4,460 3,410 13,111 9,215 
Ashburn data center4,679 3,799 1,454 11,084 2,306 
Fort Worth data center3,001 2,296 1,115 6,619 2,141 
Atlanta (DC - 2) data center (3)
1,503 — — 1,498 — 
Other facilities (4)
3,061 4,227 1,611 9,108 4,790 
NOI from consolidated operations (5)
$89,554 $87,185 $76,812 $258,339 $229,273 
Pro rata share of NOI from unconsolidated entity (6)
1,180 927 872 2,950 1,948 
Total NOI$90,734 $88,112 $77,684 $261,289 $231,221 
________________________________________________________
(1)This property was formerly known as “Atlanta, GA (Metro)” but has been renamed “Atlanta, GA (DC-1)” to distinguish between the existing data center and the newly developed data center shown as “Atlanta, GA (DC – 2).”
(2)Includes 7 facilities. All facilities are leased, including those subject to finance leases.
(3)Represents the newly developed data center building at our Atlanta, GA campus.
(4)Consists of Miami, FL; Lenexa, KS; Overland Park, KS; Eemshaven, Netherlands and Groningen, Netherlands facilities. In addition, includes management fees and development fees.
(5)Includes facility level G&A expense allocation charges of 4% of cash revenue for all facilities. These allocated charges aggregated to $5.1 million, $4.8 million and $4.8 million for the three months ended September 30, 2020, June 30, 2020 and September 30, 2019, respectively, and $14.6 million and $13.9 million for the nine months ended September 30, 2020 and 2019, respectively.
(6)QTS’ pro rata share of the JV is 50%.
14
QTS Q3 Earnings 2020
Contact: IR@qtsdatacenters.com

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Our cash paid for capital expenditures is summarized as follows:
Three Months EndedNine Months Ended
September 30,
2020
June 30, 2020September 30,
2019
September 30,
20202019
Development (1)
$171,350 $187,824 $39,043 $503,654 $175,039 
Acquisitions10,831 — 22,362 12,628 68,517 
Maintenance capital expenditures 2,268 4,220 381 8,150 3,323 
Other capital expenditures (2)
27,116 23,731 24,484 77,250 75,952 
Total capital expenditures$211,565 $215,775 $86,270 $601,682 $322,831 
________________________________________________________
(1)Includes QTS’ pro rata share of capital expenditures associated with the unconsolidated joint venture. Total capital expenditures of the joint venture were approximately $3 million (of which $1 million was our pro rata share) for the three months ended September 30, 2020, less the equity contribution of the JV partner and the JV partners’ portion of debt of $2 million. Total capital expenditures of the joint venture were approximately $12 million (of which $5 million was our pro rata share) for the three months ended June 30, 2020, less the equity contribution of the JV partner and the JV partners’ portion of debt of $7 million. Total capital expenditures of the joint venture were approximately $4 million (of which $2 million was our pro rata share) for the three months ended September 30, 2019, less the equity contribution of the JV partner and the JV partners’ portion of debt of $2 million. Total capital expenditures of the joint venture were approximately $16 million (of which $7 million was our pro rata share) for the nine months ended September 30, 2020, less equity contribution of the JV partner and the JV partners’ portion of debt of $9 million. Total capital expenditures of the joint venture were approximately $38 million (of which $18 million was our pro rata share) for the nine months ended September 30, 2019, less equity contribution of the JV partner and the JV partners’ portion of debt of $20 million.
(2)Represents capital expenditures for capitalized interest, commissions, personal property, overhead costs and corporate fixed assets. Corporate fixed assets primarily relate to construction of corporate offices, leasehold improvements and product related assets.
15
QTS Q3 Earnings 2020
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Leasing Statistics – Signed Leases
Incremental Annualized Rent, Net of Downgrades reflects net incremental MRR signed during the period for purposes of tracking incremental revenue contribution. The amounts below include renewals when there was a change in square footage rented, but exclude renewals where square footage remained consistent before and after renewal. (See renewal table on page 17 for such renewals). The amounts below include results of the consolidated business as well as QTS’ 50% pro rata share of the leasing activity attributable to the JV, if any.
During the third quarter of 2020, the Company entered into 540 new and modified leases aggregating to $26.0 million of incremental annualized rent. The Company’s third quarter leasing performance was driven by several multi-megawatt deals signed in both its Hyperscale and Federal product offerings, combined with continued steady performance in its Hybrid Colocation product offering. Pricing on new and modified renewal leases was $390 annualized rent per leased square foot, which was below the Company’s trailing four quarter average pricing per square foot of $447. Lower annualized rent per leased square foot in the third quarter was primarily driven by a larger hyperscale lease which was structured as a triple-net lease, whereby certain QTS operating costs associated with the customer's deployment are recovered from the customer and not directly factored into the base rent. Excluding the impact of this lease, pricing during the third quarter would have been approximately $432 annualized rent per leased square foot which is consistent with the Company’s prior four quarter average.
The pricing on new and modified leases signed varies quarter to quarter based on the mix of deals leased, as hyperscale and hybrid colocation leases vary on a rate per square foot basis. Annualized rent per leased square foot is computed using the total rent associated with all new and modified leases for the respective periods.
PeriodNumber of Leases Annualized rent per leased sq ft
Incremental Annualized Rent, Net of Downgrades (1)
New/modified leases signedQ3 2020540390(2)26,002,722
P4QA (3)
45144722,001,246
Q2 202049954821,044,584
Q1 202048638821,832,767
Q4 201937346527,742,166
Q3 201944440417,385,468
________________________________________________________
(1)Amounts include incremental MRR only, net of downgrades. Figures do not include cost recoveries.
(2)Pricing on new and modified renewal leases during the quarter reflects a larger hyperscale contract signed during the quarter which was structured as a triple-net lease. Excluding the impact of this lease, pricing during the third quarter would have been approximately $432 annualized rent per leased square foot.
(3)Average of prior four quarters.
The following table outlines the booked-not-billed (“BNB”) balance as of September 30, 2020 and how it is expected to affect revenue in 2020 and subsequent years based on the current terms of the applicable contracts.
Note: The following table includes QTS’ 50% pro rata share of BNB revenue from the unconsolidated joint venture.
Booked-not-billed ("BNB") (1)
20202021ThereafterTotal
MRR$1,955,937 $6,017,948 $2,908,504 $10,882,389 
Incremental revenue (2)
4,464,483 39,872,683 34,902,048 
Annualized revenue (3) (4)
$23,471,244 $72,215,376 $34,902,048 $130,588,668 
________________________________________________________
(1)Includes the Company’s consolidated booked-not-billed balance in addition to booked-not-billed revenue associated with the unconsolidated JV at QTS’ pro rata share of the booked-not-billed revenue. Of the $130.6 million annualized BNB revenue, approximately $1.1 million related to QTS’ pro rata share of booked-not-billed revenue associated with the unconsolidated JV.
(2)Incremental revenue represents the expected amount of recognized MRR for the business in the period based on when the booked-not-billed leases commence throughout the period.
(3)Annualized revenue represents the booked-not-billed MRR multiplied by 12, demonstrating how much recognized MRR might have been recognized if the booked-not-billed leases commencing in the period were in place for an entire year.
(4)As of September 30, 2020, adjusting booked-not-billed revenue for the effects of revenue which had begun recognition via straight line rent, the Company’s annualized booked-not-billed balance was $76.6 million, of which $15.4 million was attributable to 2020, $45.8 million was attributable to 2021, and $15.5 million was attributable to years thereafter.
The Company estimates the remaining cost to provide the space, power, connectivity and other services to the customer contracts which had not billed as of September 30, 2020 to be approximately $197 million. This estimate generally includes customers with newly contracted space of more than 3,300 square feet of raised floor space. The space, power and other services provided to customers that contract for smaller amounts of space is generally provided by existing space which was previously developed.
16
QTS Q3 Earnings 2020
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Leasing Statistics – Renewed Leases and Rental Churn
The mix of leasing activity has a significant impact on quarterly rates, both within major product segments and for overall blended renewal rates. The Company’s rate performance will vary quarter to quarter based on the mix of deals leased as hyperscale and hybrid colocation vary on a rate per square foot basis.
Consistent with the Company’s strategy and business model, the renewal rates below reflect total MRR per square foot including all subscribed services. For comparability, the Company includes only those customers that have maintained consistent space footprints in the computations below. All customers with space changes are incorporated into new/modified leasing statistics and rates. The amounts below include results of the consolidated business as well as QTS’ 50% pro rata share of the renewal leasing activity attributable to the JV, if any.
The average rent per square foot for renewals signed in the third quarter of 2020 was 1.8% higher than the rates for those customers immediately prior to renewal, which is consistent with the Company’s expectation that renewal rates will generally increase in the low to mid-single digits.
Rental Churn (which the Company defines as MRR lost in the period to a customer intending to fully exit the QTS platform in the near term compared to total MRR at the beginning of the period) was 1.7% for the third quarter of 2020. Rental Churn was 2.9% for the nine months ended September 30, 2020, which remains consistent with the Company’s expectation for full year churn guidance of 3-5%. The Company’s 1.7% churn during the three months ended September 30, 2020 represented an increase quarter-over-quarter, however this was largely driven by timing as customer attrition in the first half of the year generally trended better than initially anticipated with some churn events getting pushed from the first half of the year into the second half of the year.
PeriodNumber of renewed leasesAnnualized rent per leased sq ftAnnualized Rent
Rent
Change (1)
Renewed LeasesQ3 202091$609 $14,530,020 1.8 %
P4Q avg (2)
92598 17,054,884 1.9 %
Q2 2020112509 19,555,593 2.6 %
Q1 202078871 11,279,385 5.0 %
Q4 201990777 11,522,508 (2.2 %)
Q3 201988541 25,862,052 2.0 %
________________________________________________________
(1)Calculated as the percentage change of the rent per square foot immediately before renewal when compared to the rent per square foot immediately after renewal.
(2)Average of prior four quarters.
17
QTS Q3 Earnings 2020
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Lease Expirations
Hyperscale leases are typically 5-10 years with the majority of hyperscale lease expirations occurring in 2022 and beyond. Hybrid colocation leases are typically 3 years in duration, with the majority of hybrid colocation lease expirations occurring between 2021 and 2023. The following table sets forth a summary schedule of the lease expirations as of September 30, 2020. Unless otherwise stated in the footnotes, the information set forth in the table assumes that customers exercise no renewal options and all early termination rights are exercised.
Note: The table below includes the Company’s pro rata share of leases associated with the unconsolidated joint venture. QTS’ pro rata share of the JV is 50%.
Year of Lease Expiration
Number of Leases Expiring (1)
Total Raised Floor of Expiring Leases% of Portfolio Leased Raised Floor
Annualized Rent