Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 29, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-36109 | |
Entity Registrant Name | QTS Realty Trust, Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 46-2809094 | |
Entity Address, Address Line One | 12851 Foster Street | |
Entity Address, City or Town | Overland Park | |
Entity Address, State or Province | KS | |
Entity Address, Postal Zip Code | 66213 | |
City Area Code | 913 | |
Local Phone Number | 312-5503 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001577368 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class A common stock, $0.01 par value | |
Trading Symbol | QTS | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 68,777,469 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 124,481 | |
Series A Redeemable Perpetual Preferred Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Preferred Stock, 7.125% Series A Cumulative Redeemable Perpetual, $0.01 par value | |
Trading Symbol | QTS PRA | |
Security Exchange Name | NYSE | |
Series B Convertible Perpetual Preferred Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Preferred Stock, 6.50% Series B Cumulative Convertible Perpetual, $0.01 par value | |
Trading Symbol | QTS PRB | |
Security Exchange Name | NYSE |
INTERIM CONSOLIDATED BALANCE SH
INTERIM CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Real Estate Assets | ||
Land | $ 164,822 | $ 165,109 |
Buildings, improvements and equipment | 2,965,488 | 2,839,261 |
Less: Accumulated depreciation | (745,237) | (702,944) |
Total real estate assets | 2,385,073 | 2,301,426 |
Construction in progress | 1,119,749 | 1,028,765 |
Real Estate Assets, net | 3,504,822 | 3,330,191 |
Investments in unconsolidated entity | 25,858 | 22,608 |
Operating lease right-of-use assets, net | 49,851 | 51,342 |
Cash and cash equivalents | 14,652 | 22,775 |
Rents and other receivables, net | 124,392 | 107,563 |
Acquired intangibles, net | 64,934 | 68,090 |
Deferred costs, net | 64,333 | 63,689 |
Prepaid expenses | 14,147 | 10,253 |
Goodwill | 173,843 | 173,843 |
Other assets, net | 48,458 | 48,218 |
TOTAL ASSETS | 4,085,290 | 3,898,572 |
LIABILITIES | ||
Unsecured term loans and revolver, net | 1,305,167 | 1,335,241 |
Senior notes, net of debt issuance costs | 492,775 | 492,534 |
Finance leases | 42,525 | 41,718 |
Operating lease liabilities | 56,327 | 58,005 |
Accounts payable and accrued liabilities | 202,552 | 187,270 |
Dividends and distributions payable | 41,686 | 39,373 |
Advance rents, security deposits and other liabilities | 23,506 | 19,850 |
Derivative liabilities | 36,751 | 53,722 |
Deferred income taxes | 826 | 810 |
Deferred income | 93,495 | 85,351 |
TOTAL LIABILITIES | 2,295,610 | 2,313,874 |
EQUITY | ||
Common stock/units | 690 | 646 |
Additional paid-in capital | 1,834,309 | 1,622,857 |
Accumulated other comprehensive loss | (35,181) | (50,451) |
Accumulated dividends in excess of earnings | (536,031) | (504,313) |
Total stockholders’ equity | 1,671,222 | 1,476,174 |
Noncontrolling interests | 118,458 | 108,524 |
TOTAL EQUITY | 1,789,680 | 1,584,698 |
TOTAL LIABILITIES AND EQUITY | 4,085,290 | 3,898,572 |
Series A Redeemable Perpetual Preferred Stock | ||
EQUITY | ||
Cumulative redeemable perpetual preferred stock / units | 103,212 | 103,212 |
Series B Convertible Perpetual Preferred Stock | ||
EQUITY | ||
Cumulative redeemable perpetual preferred stock / units | $ 304,223 | $ 304,223 |
INTERIM CONSOLIDATED BALANCE _2
INTERIM CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 450,133,000 | 450,133,000 |
Common stock, shares issued (in shares) | 68,962,873 | 64,580,118 |
Common stock, shares outstanding (in shares) | 68,962,873 | 64,580,118 |
Series A Redeemable Perpetual Preferred Stock | ||
Dividend rate (as a percent) | 7.125% | |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 |
Preferred stock, shares authorized (in shares) | 4,600,000 | 4,600,000 |
Preferred stock, shares issued (in shares) | 4,280,000 | 4,280,000 |
Preferred stock, shares outstanding (in shares) | 4,280,000 | 4,280,000 |
Series B Convertible Perpetual Preferred Stock | ||
Dividend rate (as a percent) | 6.50% | |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, liquidation preference (in dollars per share) | $ 100 | $ 100 |
Preferred stock, shares authorized (in shares) | 3,162,500 | 3,162,500 |
Preferred stock, shares issued (in shares) | 3,162,500 | 3,162,500 |
Preferred stock, shares outstanding (in shares) | 3,162,500 | 3,162,500 |
INTERIM CONSOLIDATED STATEMENTS
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||
Rental | $ 144,308 | $ 120,081 |
Other | 4,424 | 6,211 |
Total revenues | 148,732 | 126,292 |
Operating expenses: | ||
Property operating costs | 46,284 | 40,781 |
Real estate taxes and insurance | 5,022 | 3,911 |
Depreciation and amortization | 55,506 | 45,070 |
General and administrative | 23,641 | 20,683 |
Transaction, integration, and impairment costs | 1,516 | 216 |
Total operating expenses | 131,969 | 110,661 |
Operating income | 16,763 | 15,631 |
Other income and expense: | ||
Interest expense | (8,148) | (7,162) |
Other income | 0 | 159 |
Equity in net loss of unconsolidated entity | (559) | (677) |
Income before taxes | 8,056 | 7,951 |
Tax benefit (expense) | (138) | 169 |
Net income | 7,918 | 8,120 |
Net income attributable to noncontrolling interests | (79) | (110) |
Net income attributable to QTS Realty Trust, Inc. | 7,839 | 8,010 |
Preferred stock dividends | (7,045) | (7,045) |
Net income attributable to common stockholders | $ 794 | $ 965 |
Net loss per share attributable to common shares | ||
Basic (in dollars per share) | $ (0.07) | $ (0.01) |
Diluted (in dollars per share) | $ (0.07) | $ (0.01) |
INTERIM CONSOLIDATED STATEMEN_2
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net income | $ 7,918 | $ 8,120 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment loss | (158) | (223) |
Increase (decrease) in fair value of derivative contracts | 17,253 | (36,715) |
Reclassification of other comprehensive income to utilities expense | (66) | 354 |
Reclassification of other comprehensive income to interest expense | 3,375 | 758 |
Comprehensive income (loss) | 28,322 | (27,706) |
Comprehensive (income) loss attributable to noncontrolling interests | (2,558) | 2,831 |
Comprehensive income (loss) attributable to QTS Realty Trust, Inc. | $ 25,764 | $ (24,875) |
INTERIM CONSOLIDATED STATEMEN_3
INTERIM CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Series A Preferred Stock | Series B Preferred Stock | Total stockholders' equity | Total stockholders' equitySeries A Preferred Stock | Total stockholders' equitySeries B Preferred Stock | Preferred Stock | Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Accumulated dividends in excess of earnings | Accumulated dividends in excess of earningsSeries A Preferred Stock | Accumulated dividends in excess of earningsSeries B Preferred Stock | Noncontrolling interests |
Beginning balance (in shares) at Dec. 31, 2019 | 7,443 | 58,228 | ||||||||||||
Beginning balance at Dec. 31, 2019 | $ 1,444,451 | $ 1,337,817 | $ 407,435 | $ 582 | $ 1,330,444 | $ (24,642) | $ (376,002) | $ 106,634 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net share activity through equity award plan (in shares) | 240 | |||||||||||||
Net share activity through equity award plan | (1,458) | (1,309) | $ 3 | (1,312) | (149) | |||||||||
Increase (decrease) in fair value of derivative contracts | (36,715) | (33,155) | (33,155) | (3,560) | ||||||||||
Foreign currency translation adjustments | (223) | (201) | (201) | (22) | ||||||||||
Equity-based compensation expense | 4,875 | 4,377 | 4,377 | 498 | ||||||||||
Proceeds net of fees from settlement of forward shares (in shares) | 1,930 | |||||||||||||
Proceeds net of fees from settlement of forward shares | 83,217 | 78,535 | $ 19 | 78,516 | 4,682 | |||||||||
Dividends declared on Preferred Stock | (7,045) | $ (1,906) | $ (5,139) | $ (1,906) | $ (5,139) | $ (1,906) | $ (5,139) | |||||||
Dividends declared to common stockholders | (28,393) | (28,393) | (28,393) | |||||||||||
Dividends declared to noncontrolling interests | (3,133) | 0 | (3,133) | |||||||||||
Net income | 8,120 | 8,010 | 8,010 | 110 | ||||||||||
Ending balance (in shares) at Mar. 31, 2020 | 7,443 | 60,398 | ||||||||||||
Ending balance at Mar. 31, 2020 | 1,463,696 | 1,358,636 | $ 407,435 | $ 604 | 1,412,025 | (57,998) | (403,430) | 105,060 | ||||||
Beginning balance (in shares) at Dec. 31, 2020 | 7,443 | 64,580 | ||||||||||||
Beginning balance at Dec. 31, 2020 | 1,584,698 | 1,476,174 | $ 407,435 | $ 646 | 1,622,857 | (50,451) | (504,313) | 108,524 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net share activity through equity award plan (in shares) | 426 | |||||||||||||
Net share activity through equity award plan | 59 | 54 | $ 4 | 50 | 5 | |||||||||
Conversion of Class A Partnership units to Class A common stock (in shares) | 92 | |||||||||||||
Conversion of Class A Partnership units to Class A common stock | 0 | 2,041 | $ 1 | 2,040 | (2,041) | |||||||||
Increase (decrease) in fair value of derivative contracts | 17,253 | 15,414 | 15,414 | 1,839 | ||||||||||
Foreign currency translation adjustments | (158) | (144) | (144) | (14) | ||||||||||
Equity-based compensation expense | 6,856 | 6,237 | 6,237 | 619 | ||||||||||
Proceeds net of fees from settlement of forward shares (in shares) | 3,865 | |||||||||||||
Proceeds net of fees from settlement of forward shares | 215,846 | 203,164 | $ 39 | 203,125 | 12,682 | |||||||||
Dividends declared on Preferred Stock | (7,045) | $ (1,906) | $ (5,139) | $ (1,906) | $ (5,139) | $ (1,906) | $ (5,139) | |||||||
Dividends declared to common stockholders | (32,512) | (32,512) | (32,512) | |||||||||||
Dividends declared to noncontrolling interests | (3,235) | 0 | (3,235) | |||||||||||
Net income | 7,918 | 7,839 | 7,839 | 79 | ||||||||||
Ending balance (in shares) at Mar. 31, 2021 | 7,443 | 68,963 | ||||||||||||
Ending balance at Mar. 31, 2021 | $ 1,789,680 | $ 1,671,222 | $ 407,435 | $ 690 | $ 1,834,309 | $ (35,181) | $ (536,031) | $ 118,458 |
INTERIM CONSOLIDATED STATEMEN_4
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flow from operating activities: | ||
Net income | $ 7,918 | $ 8,120 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 53,825 | 43,373 |
Amortization of above and below market leases | 10 | 90 |
Amortization of deferred loan costs | 1,130 | 987 |
Distributions from unconsolidated entity | 569 | 300 |
Equity in net loss of unconsolidated entity | 559 | 677 |
Equity-based compensation expense | 6,856 | 4,875 |
Bad debt expense | 1,013 | 3,719 |
Deferred tax expense (benefit) | 18 | (270) |
Foreign currency remeasurement income | 0 | (159) |
Changes in operating assets and liabilities | ||
Rents and other receivables, net | (17,933) | 2,888 |
Prepaid expenses | (3,914) | (3,164) |
Due to/from affiliates, net | (4,095) | (4,428) |
Other assets | (445) | (238) |
Accounts payable and accrued liabilities | 2,610 | 7,173 |
Advance rents, security deposits and other liabilities | 3,771 | 6,727 |
Deferred income | 8,203 | 392 |
Net cash provided by operating activities | 60,095 | 71,062 |
Cash flow from investing activities: | ||
Acquisitions, net of cash acquired | (401) | (1,797) |
Additions to property and equipment | (214,279) | (171,218) |
Net cash used in investing activities | (214,680) | (173,015) |
Cash flow from financing activities: | ||
Credit facility proceeds | 253,000 | 212,917 |
Credit facility repayments | (280,000) | 0 |
Payment of deferred financing costs | 0 | (5) |
Payment of preferred stock dividends | (7,045) | (7,045) |
Payment of common stock dividends | (30,352) | (25,627) |
Distribution to noncontrolling interests | (3,082) | (2,934) |
Proceeds from exercise of stock options | 1,979 | 808 |
Payment of tax withholdings related to equity-based awards | (1,435) | (2,293) |
Principal payments on finance lease obligations | (662) | (620) |
Mortgage principal debt repayments | 0 | (12) |
Common stock issuance proceeds, net of costs | 215,923 | 83,260 |
Net cash provided by financing activities | 148,326 | 258,449 |
Effect of foreign currency exchange rates on cash and cash equivalents | (1,864) | (192) |
Net change in cash and cash equivalents | (8,123) | 156,304 |
Cash and cash equivalents, beginning of period | 22,775 | 15,653 |
Cash and cash equivalents, end of period | 14,652 | 171,957 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid for interest | 8,801 | 9,370 |
Noncash investing and financing activities: | ||
Accrued capital additions | 138,259 | 125,750 |
Net increase (decrease) in other assets/liabilities related to change in fair value of derivative contracts | 17,253 | (35,097) |
Accrued equity issuance costs | 75 | 44 |
Accrued preferred stock dividend | $ 5,938 | $ 5,938 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business QTS Realty Trust, Inc. (“QTS”), through its controlling interest in QualityTech, LP (the “Operating Partnership” and collectively with QTS and its subsidiaries, the “Company,” “we,” “us,” or “our”) and the subsidiaries of the Operating Partnership, is engaged in the business of owning, acquiring, constructing, redeveloping and managing multi-tenant data centers. As of March 31, 2021, our portfolio consisted of 28 owned and leased properties, including a property owned by an unconsolidated entity, with data centers located throughout the United States, Canada and Europe. QTS elected to be taxed as a real estate investment trust (“REIT”) for U.S. federal income tax purposes commencing with its taxable year ended December 31, 2013. As a REIT, QTS generally is not required to pay federal corporate income taxes on its taxable income to the extent it is currently distributed to its stockholders. As of March 31, 2021, QTS owned approximately 91.4% of the interests in the Operating Partnership. Substantially all of QTS’ assets are held by, and all of QTS’ operations are conducted through, the Operating Partnership. QTS’ interest in the Operating Partnership entitles QTS to share in cash distributions from, and in the profits and losses of, the Operating Partnership in proportion to QTS’ percentage ownership. As the sole general partner of the Operating Partnership, QTS generally has the exclusive power under the partnership agreement of the Operating Partnership to manage and conduct the Operating Partnership’s business and QTS’ board of directors manages the Operating Partnership and the Company’s business and affairs. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation – The accompanying financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and in compliance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). These unaudited consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements and related notes and management’s discussion and analysis included in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 26, 2021. The consolidated balance sheet data included herein as of December 31, 2020 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. As outlined in our Annual Report on Form 10-K for the year ended December 31, 2020, the Operating Partnership meets the definition and criteria of a variable interest entity (“VIE”) in accordance with Accounting Standards Codification (“ASC”) Topic 810 Consolidation , and the Company is the primary beneficiary of the VIE. The Company’s only material asset is its ownership interest in the Operating Partnership, and consequently, all of its assets and liabilities represent those assets and liabilities of the Operating Partnership. The Company’s debt is an obligation of the Operating Partnership where the creditors may have recourse, under certain circumstances, against the credit of the Company. Use of Estimates – The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of fixed assets, allowances for doubtful accounts and deferred tax assets and the valuation of derivatives, real estate assets, acquired intangible assets and certain accruals. The impacts of the COVID-19 pandemic increases uncertainty, which has reduced our ability to use past results to estimate future performance. Accordingly, our estimates and judgments may be subject to greater volatility than has been the case in the past. Principles of Consolidation – The consolidated financial statements of QTS Realty Trust, Inc. include the accounts of QTS Realty Trust, Inc. and its controlled subsidiaries. All significant intercompany accounts and transactions have been eliminated in the financial statements. We evaluate our investments in less than wholly owned entities to determine whether they should be recorded on a consolidated basis. The percentage of ownership interest in the entity, an evaluation of control and whether a VIE exists are all considered in our consolidation assessment. Investments in real estate entities which we have the ability to exercise significant influence, but do not have financial or operating control, are accounted for using the equity method of accounting. Accordingly, our share of the earnings or losses of these entities is included in consolidated net income (loss). Variable Interest Entities (VIEs) – We determine whether an entity is a VIE and, if so, whether it should be consolidated by utilizing judgments and estimates that are inherently subjective. The determination of whether an entity in which we hold a direct or indirect variable interest is a VIE is based on several factors, including whether the entity’s total equity investment at risk upon inception is sufficient to finance the entity’s activities without additional subordinated financial support. We make judgments regarding the sufficiency of the equity at risk based first on a qualitative analysis, and then a quantitative analysis, if necessary. We analyze any investments in VIEs to determine if we are the primary beneficiary. In evaluating whether we are the primary beneficiary, we evaluate our direct and indirect economic interests in the entity. Determining which reporting entity, if any, is the primary beneficiary of a VIE is primarily a qualitative approach focused on identifying which reporting entity has both (1) the power to direct the activities of a VIE that most significantly impact such entity’s economic performance and (2) the obligation to absorb losses or the right to receive benefits from such entity that could potentially be significant to such entity. Performance of that analysis requires the exercise of judgment. We consider a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE’s economic performance including, but not limited to, the ability to direct financing, leasing, construction and other operating decisions and activities. In addition, we consider the rights of other investors to participate in those decisions, to replace the manager and to sell or liquidate the entity. We determine whether we are the primary beneficiary of a VIE at the time we become involved with a variable interest entity and reconsider that conclusion upon a reconsideration event. As of March 31, 2021, we had one unconsolidated entity that was considered a VIE for which we are not the primary beneficiary. Our maximum exposure to losses associated with this VIE is limited to our net investment, which was approximately $25.9 million as of March 31, 2021. Real Estate Assets – Real estate assets are reported at cost. All capital improvements for the income-producing properties that extend their useful lives are capitalized to individual property improvements and depreciated over their estimated useful lives. Depreciation for real estate assets is generally provided on a straight-line basis over 40 years from the date the property was placed in service. Property improvements are depreciated on a straight-line basis over the life of the respective improvement ranging from 20 to 40 years from the date the components were placed in service. Leasehold improvements are depreciated over the lesser of 20 years or through the end of the respective life of the lease. Repairs and maintenance costs are expensed as incurred. For the three months ended March 31, 2021, depreciation expense related to real estate assets and non-real estate assets was $42.7 million and $2.9 million, respectively, for a total of $45.6 million. For the three months ended March 31, 2020, depreciation expense related to real estate assets and non-real estate assets was $32.3 million and $3.4 million, respectively, for a total of $35.7 million. We capitalize certain real estate development costs, including internal costs incurred in connection with development. The capitalization of costs during the construction period (including interest and related loan fees, property taxes and other direct and indirect project costs) begins when development efforts commence and ends when the asset is ready for its intended use. The capitalization of internal costs increases construction in progress recognized during development of the related property and the cost of the real estate asset when placed into service and such costs are depreciated over its estimated useful life. Capitalization of such costs, excluding interest, aggregated to $5.5 million and $4.5 million for the three months ended March 31, 2021 and 2020, respectively. Interest is capitalized during the period of development by applying our weighted average effective borrowing rate to the actual development and other capitalized costs paid during the construction period. Interest is capitalized until the property is ready for its intended use. Interest costs capitalized totaled $7.0 million and $8.1 million for the three months ended March 31, 2021 and 2020, respectively. Acquisitions and Sales – Acquisitions of real estate and other entities are either accounted for as asset acquisitions or business combinations depending on facts and circumstances. In developing estimates of fair value of acquired assets and assumed liabilities, management analyzes a variety of factors including market data, estimated future cash flows of the acquired operations, industry growth rates, current replacement cost for fixed assets and market rate assumptions for contractual obligations. Such a valuation requires management to make significant estimates and assumptions, particularly with respect to the intangible assets. Impairment of Long-Lived Assets, Intangible Assets and Goodwill – We review our long-lived assets, intangible assets and equity method investments for impairment when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Recoverability of assets to be held and used is measured by comparison of the carrying amount to the future net cash flows, undiscounted and without interest, expected to be generated by the asset group. If the net carrying value of the asset group exceeds the value of the undiscounted cash flows, the fair value of the asset group is assessed and may be considered impaired. An impairment loss is recognized based on the excess of the carrying amount of the impaired asset over its fair value. No impairment losses were recorded for the three months ended March 31, 2021 and March 31, 2020. The fair value of goodwill is the consideration transferred in a business combination which is not allocable to identifiable intangible and tangible assets. Goodwill is subject to at least an annual assessment for impairment. In connection with the goodwill impairment evaluation that we performed as of October 1, 2020, we determined qualitatively that it is not more likely than not that the fair value of our one reporting unit was less than the carrying amount, thus we did not perform a quantitative analysis. As we continue to operate and assess our goodwill at the consolidated level for our single reporting unit and our market capitalization significantly exceeds our net asset value, further analysis was not deemed necessary as of March 31, 2021. Cash and Cash Equivalents – We consider all demand deposits and money market accounts purchased with a maturity date of three months or less at the date of purchase to be cash equivalents. Our account balances at one or more institutions periodically exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance coverage and, as a result, there is concentration of credit risk related to amounts on deposit in excess of FDIC coverage. We mitigate this risk by depositing a majority of our funds with several major financial institutions. We also have not experienced any losses and do not believe that the risk is significant. Revenue Recognition – We derive our revenues from leases with customers for data center space which include lease components and nonlease revenue components, such as power, tenant recoveries, and managed services. We have elected the available practical expedient under ASC Topic 842, Leases , to combine our nonlease revenue components that have the same pattern of transfer as the related operating lease component into a single combined lease component. The single combined component is accounted for under ASC Topic 842 if the lease component is the predominant component and is accounted for under ASC Topic 606 if the nonlease components are the predominant components. In our contracts, the single combined component is accounted for under ASC Topic 842 as the lease component is the predominant component. A description of each of our disaggregated revenue streams is as follows: Rental Revenue Our leases with customers are classified as operating leases and rental revenue is recognized on a straight-line basis over the customer lease term. Occasionally, customer leases include options to extend or terminate the lease agreements. We do not include any of these extension or termination options in a customer’s lease term for lease classification purposes or recognizing rental revenue unless it is reasonably certain the customer will exercise these extension or termination options. Rental revenue also includes revenue from power delivery on fixed power arrangements, whereby customers are billed and pay a fixed monthly fee per committed available amount of connected power. These fixed power arrangements require us to provide a series of distinct services and to stand ready to deliver the power over the contracted term which is co-terminus with the lease. Customer fixed power arrangements have the same pattern of transfer over the lease term as the lease component and are therefore combined with the lease component to form a single lease component that is recognized over the term of the lease on a straight-line basis. In addition, rental revenue includes straight-line rent. Straight-line rent represents the difference in rents recognized during the period versus amounts contractually due pursuant to the underlying leases and is recorded as deferred rent receivable/payable in the consolidated balance sheets. For lease agreements that provide for scheduled rent increases, rental income is recognized on a straight-line basis over the non-cancellable term of the leases, which commences when control of the space has been provided to the customer. The amount of the straight-line rent receivable on the balance sheet included in rents and other receivables, net was $71.0 million and $63.6 million as of March 31, 2021 and December 31, 2020, respectively. Rental revenue also includes amortization of set-up fees which are amortized over the term of the respective lease as discussed below in the "Deferred Income" section. Variable Lease Revenue from Recoveries Certain customer leases contain provisions under which customers reimburse us for power and cooling-related charges as well as a portion of the property’s real estate taxes, insurance and other operating expenses. Recoveries of power and cooling-related expenses relate specifically to our variable power arrangements, whereby customers pay variable monthly fees for the specific amount of power utilized at the current utility rates. Our performance obligation is to stand ready to deliver power over the life of the customer contract up to a contracted power capacity. Customers have the flexibility to increase or decrease the amount of power consumed, and therefore sub-metered power revenue is constrained at contract inception. The reimbursements are included in revenue as recoveries from customers and are recognized each month as the uncertainty related to the consideration is resolved (i.e. we provide power to our customers) and customers utilize the power. Reimbursement of real estate taxes, insurance, common area maintenance, or other operating expenses are accounted for as variable payments under lease guidance pursuant to the practical expedient and are recognized as revenue in the period that the expenses are recognized. Variable lease revenue from recoveries discussed above, including power, common area maintenance or other operating costs, have the same pattern of transfer over the lease term as the lease component and are therefore combined with the lease component to form a single lease component. Variable lease revenue from recoveries is included within the “rental” line item on the statements of operations. Other Revenue Other revenue primarily consists of revenue from our managed service offerings, as well as revenue earned from partner channel, management and development fees. We, through our taxable REIT subsidiaries (“TRS”), may provide use of our managed services to our customers on an individual or combined basis. In our managed services offering, the TRS’s performance obligation is to provide services (e.g. cloud hosting, data backup, data storage or data center personnel labor hours) to facilitate a fully integrated information technology (“IT”) outsourcing environment over a contracted term. Although underlying services may vary, over the contracted term monthly service offerings are substantially the same and we account for the services as a series of distinct services in accordance with ASC Topic 606. Service fee revenue is recognized as the revenue is earned, which generally coincides with the services being provided. As we have the right to consideration from customers in an amount that corresponds directly with the value to the customer of the TRS’s performance of providing continuous services, we recognize monthly revenue for the amount invoiced. With respect to the transaction price allocated to remaining performance obligations within our managed service contracts, we have elected to use the optional exemption provided by ASC Topic 606 whereby we are not required to estimate the total transaction price allocated to remaining performance obligations as we apply the “right-to-invoice” practical expedient. As described above, the nature of our performance obligation in these contracts is to provide monthly services that are substantially the same and accounted for as a series of distinct services. These contracts generally have a remaining term ranging from month-to-month to three years. Management fees and other revenues are generally received from our unconsolidated entity properties as well as third parties. Management fee revenue is earned based on a contractual percentage of unconsolidated entity property revenue. Development fee revenue is earned on a contractual percentage of hard costs to develop a property. We recognize revenue for these services provided when earned based on the performance criteria in ASC Topic 606, with such revenue recorded in “Other” revenue on the consolidated statements of operations. Leases as Lessee – We determine if an arrangement is a lease at inception. If the contract is considered a lease, we evaluate leased property to determine whether the lease should be classified as a finance or operating lease in accordance with U.S. GAAP. We periodically enter into finance leases for certain data center facilities, equipment, and fiber optic transmission cabling. Finance lease assets are included within the “Buildings, improvements and equipment” line item of the consolidated balance sheets and finance lease liabilities are included within “Finance leases” line item of the consolidated balance sheets. In addition, we lease certain real estate (primarily land or real estate space) under operating lease agreements with such assets included within the “Operating lease right of use assets, net” line item of the consolidated balance sheets and the associated lease liabilities included within the “Operating lease liabilities” line item on the consolidated balance sheets. Right of use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Certain of our leases include variable payments, which may vary based upon changes in facts or circumstances after the start of the lease. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. As our leases as lessee typically do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. We assess multiple variables when determining the incremental borrowing rate, such as lease term, payment terms, collateral, economic conditions, and creditworthiness. ROU assets also include any lease payments made and exclude lease incentives. Many of our lease agreements include options to extend the lease, which we do not include in our expected lease terms unless they are reasonably certain to be exercised. Rental expense for lease payments related to operating leases is recognized on a straight-line basis over the lease term. Allowance for Uncollectible Accounts Receivable – We record a provision for uncollectible accounts if a receivable balance relating to lease components from an individual contract is considered by management not to be probable of collection, and this provision is recorded as a reduction to leasing revenues. We also record a general provision of estimated uncollectible tenant receivables based on general probability of collection in accordance with ASC 450-20 Loss Contingencies . This provision is recorded as bad debt expense and recorded within the “Property Operating Costs” line item of the consolidated statements of operations. The aggregate allowance for doubtful accounts on the consolidated balance sheets was $5.3 million and $5.4 million as of March 31, 2021 and December 31, 2020, respectively. Deferred Income – Deferred income generally results from non-refundable charges paid by the customer at lease inception to prepare their space for occupancy. We record this initial payment, commonly referred to as set-up fees, as a deferred income liability which amortizes into rental revenue over the term of the related lease on a straight-line basis. Deferred income was $93.5 million and $85.4 million as of March 31, 2021 and December 31, 2020, respectively. Additionally, $6.4 million and $3.9 million of deferred income was amortized into revenue for the three months ended March 31, 2021 and 2020, respectively. Equity-based Compensation – Equity-based compensation costs are measured based upon their estimated fair value on the date of grant or modification and amortized ratably over their respective service periods. We have elected to account for forfeitures as they occur. Equity-based compensation expense was $6.9 million and $4.9 million for the three months ended March 31, 2021 and 2020, respectively. Segment Information – We manage our business as one operating segment and thus one reportable segment consisting of a portfolio of investments in multiple data centers. Customer Concentrations – During the three months ended March 31, 2021, one of our customers exceeded 10% of total revenues, representing approximately 11% of total revenues for the three months ended March 31, 2021. As of March 31, 2021, three of our customers exceeded 5% of trade accounts receivable (which excludes straight-line rent receivables). In aggregate, these three customers accounted for approximately 53% of trade accounts receivable. One of these customers individually exceeded 10% of total trade accounts receivable representing 40% of total trade accounts receivable. Income Taxes – We provide for income taxes during interim periods based on the estimated effective tax rate for the year and any discrete adjustments. The effective tax rate is subject to change in the future due to various factors such as the operating performance of the taxable REIT subsidiaries, tax law changes, and future business acquisitions or divestitures. The taxable subsidiaries’ effective tax rates were (7.8)% and 13.0% for the three months ended March 31, 2021 and 2020, respectively. Fair Value Measurements – ASC Topic 820, Fair Value Measurement , emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, a fair value hierarchy is established that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. As of March 31, 2021, we valued our derivative instruments primarily utilizing Level 2 inputs. See Note 14 – ‘Fair Value of Financial Instruments’ for additional details. New Accounting Pronouncements In January 2020, the FASB issued ASU 2020-1, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 , which clarifies the interaction between the accounting for equity securities under Topic 321, the accounting for equity method investments in Topic 323, and the accounting for certain forward contracts and purchased options in Topic 815. ASU 2020-1 is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. We adopted this ASU effective January 1, 2021, and the provisions of the standard did not have a material impact on our consolidated financial statements. Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . ASU 2020-4 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-4 is optional and may be elected over time as reference rate reform activities occur. The standard is effective for all entities as of March 12, 2020 through December 31, 2022. An entity can elect to apply the amendments as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to that date that the financial statements are available to be issued. In January 2021, the FASB issued ASU 2021-1 Reference Rate Reform (Topic 848): Scope, which updated the standard to clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. Beginning in the first quarter of 2020, we have applied the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. We continue to evaluate the impact of the guidance but we do not expect the provisions of the standard will have a material impact on our consolidated financial statements. We determined all other recently issued accounting pronouncements will not have a material impact on our consolidated financial statements or do not materially apply to our operations. |
Real Estate Assets and Construc
Real Estate Assets and Construction in Progress | 3 Months Ended |
Mar. 31, 2021 | |
Real Estate [Abstract] | |
Real Estate Assets and Construction in Progress | Real Estate Assets and Construction in Progress The following is a summary of our cost of owned or leased properties as of March 31, 2021 and December 31, 2020 (in thousands): As of March 31, 2021 (unaudited): Property Location Land Buildings, Improvements and Equipment Construction in Progress Total Cost Ashburn, Virginia Campus (1) $ 16,476 $ 391,247 $ 219,065 $ 626,788 Atlanta, Georgia Campus (2) 55,158 771,045 183,319 1,009,522 Chicago, Illinois 9,400 251,676 131,322 392,398 Dulles, Virginia 3,154 55,580 4,220 62,954 Eemshaven, Netherlands 5,153 20,991 47,859 74,003 Fort Worth, Texas 9,079 124,481 3,350 136,910 Groningen, Netherlands 1,821 11,324 3,249 16,394 Hillsboro, Oregon 18,414 47,364 72,033 137,811 Irving, Texas 8,606 409,565 89,516 507,687 Leased Facilities (3) — 83,180 60 83,240 Manassas, Virginia Campus (4) — 37 90,947 90,984 Phoenix, Arizona (5) — — 38,063 38,063 Piscataway, New Jersey 7,466 122,599 39,951 170,016 Princeton, New Jersey 20,700 35,267 9 55,976 Richmond, Virginia 2,180 235,381 128,911 366,472 Sacramento, California 1,481 66,304 125 67,910 Santa Clara, California (6) — 117,522 16,871 134,393 Suwanee, Georgia (Atlanta-Suwanee) 3,521 184,975 7,607 196,103 Other (7) 2,213 36,950 43,272 82,435 $ 164,822 $ 2,965,488 $ 1,119,749 $ 4,250,059 _______________________________ (1) The “Ashburn, Virginia Campus” includes both the existing data center Ashburn, VA (DC - 1) as well as new property development associated with the construction of a second data center Ashburn, VA (DC - 2). (2) The “Atlanta, Georgia Campus” includes both the existing data center Atlanta (DC - 1) as well as the recently developed data center Atlanta, GA (DC - 2). (3) Includes 7 facilities. All facilities are leased, including one subject to a finance lease. (4) The “Manassas, Virginia Campus” includes new property development associated with the construction of a wholly owned data center in Manassas, Virginia as well as separate land purchases in Manassas, Virginia. (5) Represents land purchases. Land acquisition costs, as well as subsequent development costs, are included within construction in progress until development on the land has ended and the asset is ready for its intended use. (6) Owned facility subject to long-term ground sublease. (7) Consists of Miami, FL; Lenexa, KS; Overland Park, KS and additional land. As of December 31, 2020: Property Location Land Buildings, Improvements and Equipment Construction in Progress Total Cost Ashburn, Virginia Campus (1) $ 16,476 $ 371,725 $ 185,903 $ 574,104 Atlanta, Georgia Campus (2) 55,157 700,142 191,072 946,371 Chicago, Illinois 9,400 250,336 104,117 363,853 Dulles, Virginia 3,154 54,323 4,148 61,625 Eemshaven, Netherlands 5,366 21,712 47,531 74,609 Fort Worth, Texas 9,079 124,054 1,064 134,197 Groningen, Netherlands 1,896 11,206 3,730 16,832 Hillsboro, Oregon 18,414 34,594 78,390 131,398 Irving, Texas 8,606 392,275 99,591 500,472 Leased Facilities (3) — 82,759 225 82,984 Manassas, Virginia Campus (4) — 25 67,073 67,098 Phoenix, Arizona (5) — — 37,729 37,729 Piscataway, New Jersey 7,466 122,176 30,401 160,043 Princeton, New Jersey 20,700 35,261 5 55,966 Richmond, Virginia 2,180 233,927 120,577 356,684 Sacramento, California 1,481 66,300 12 67,793 Santa Clara, California (6) — 117,343 9,385 126,728 Suwanee, Georgia (Atlanta-Suwanee) 3,521 184,467 6,718 194,706 Other (7) 2,213 36,636 41,094 79,943 $ 165,109 $ 2,839,261 $ 1,028,765 $ 4,033,135 _______________________________ (1) The “Ashburn, Virginia Campus” includes both the existing data center Ashburn, VA (DC - 1) as well as new property development associated with the construction of a second data center Ashburn, VA (DC - 2). (2) The “Atlanta, Georgia Campus” includes both the existing data center Atlanta (DC - 1) as well as the recently developed data center Atlanta, GA (DC - 2). (3) Includes 7 facilities. All facilities are leased, including one subject to a finance lease. (4) The “Manassas, Virginia Campus” includes new property development associated with the construction of a wholly owned data center in Manassas, Virginia as well as separate land purchases in Manassas, Virginia. (5) Represents land purchases. Land acquisition costs, as well as subsequent development costs, are included within construction in progress until development on the land has ended and the asset is ready for its intended use. (6) Owned facility subject to long-term ground sublease. (7) Consists of Miami, FL; Lenexa, KS; Overland Park, KS and additional land. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases Leases as Lessee We use leasing as a source of financing for certain data center facilities and related equipment. We currently operate one data center facility, along with various equipment and fiber optic transmission cabling, that are subject to finance leases. The remaining terms of our finance leases range from approximately ten years to twenty years. Our finance lease associated with the data center includes multiple extension option periods, some of which were included in the lease term as we are reasonably certain to exercise those extension options. Our other finance leases typically do not have options to extend the initial lease term. We currently lease six other facilities under operating lease agreements for various data centers, our corporate headquarters and additional office space. Our leases have remaining lease terms ranging from less than three years to six years. We have options to extend the initial lease term on nearly all of these leases. Additionally, we have one ground lease for our Santa Clara property that is an operating lease which is scheduled to expire in 2052. Three months ended March 31, 2021 2020 Finance lease cost: Amortization of assets $ 1,013 $ 1,038 Interest on lease liabilities 469 489 Operating lease expense: Operating lease cost 2,232 2,263 Variable lease cost 270 264 Sublease income (49) (48) Total lease costs $ 3,935 $ 4,006 Leases as lessor Our lease revenue contains both minimum lease payments as well as variable lease payments. See Note 2 ‘Summary of Significant Accounting Policies’ for further details of our revenue streams and associated accounting treatment. The components of our lease revenue were as follows (unaudited and in thousands): Three months ended March 31, 2021 2020 Lease revenue: Minimum lease revenue $ 127,706 $ 107,485 Variable lease revenue (primarily recoveries from customers) 16,602 12,596 Total lease revenue $ 144,308 $ 120,081 |
Leases | Leases Leases as Lessee We use leasing as a source of financing for certain data center facilities and related equipment. We currently operate one data center facility, along with various equipment and fiber optic transmission cabling, that are subject to finance leases. The remaining terms of our finance leases range from approximately ten years to twenty years. Our finance lease associated with the data center includes multiple extension option periods, some of which were included in the lease term as we are reasonably certain to exercise those extension options. Our other finance leases typically do not have options to extend the initial lease term. We currently lease six other facilities under operating lease agreements for various data centers, our corporate headquarters and additional office space. Our leases have remaining lease terms ranging from less than three years to six years. We have options to extend the initial lease term on nearly all of these leases. Additionally, we have one ground lease for our Santa Clara property that is an operating lease which is scheduled to expire in 2052. Three months ended March 31, 2021 2020 Finance lease cost: Amortization of assets $ 1,013 $ 1,038 Interest on lease liabilities 469 489 Operating lease expense: Operating lease cost 2,232 2,263 Variable lease cost 270 264 Sublease income (49) (48) Total lease costs $ 3,935 $ 4,006 Leases as lessor Our lease revenue contains both minimum lease payments as well as variable lease payments. See Note 2 ‘Summary of Significant Accounting Policies’ for further details of our revenue streams and associated accounting treatment. The components of our lease revenue were as follows (unaudited and in thousands): Three months ended March 31, 2021 2020 Lease revenue: Minimum lease revenue $ 127,706 $ 107,485 Variable lease revenue (primarily recoveries from customers) 16,602 12,596 Total lease revenue $ 144,308 $ 120,081 |
Leases | Leases Leases as Lessee We use leasing as a source of financing for certain data center facilities and related equipment. We currently operate one data center facility, along with various equipment and fiber optic transmission cabling, that are subject to finance leases. The remaining terms of our finance leases range from approximately ten years to twenty years. Our finance lease associated with the data center includes multiple extension option periods, some of which were included in the lease term as we are reasonably certain to exercise those extension options. Our other finance leases typically do not have options to extend the initial lease term. We currently lease six other facilities under operating lease agreements for various data centers, our corporate headquarters and additional office space. Our leases have remaining lease terms ranging from less than three years to six years. We have options to extend the initial lease term on nearly all of these leases. Additionally, we have one ground lease for our Santa Clara property that is an operating lease which is scheduled to expire in 2052. Three months ended March 31, 2021 2020 Finance lease cost: Amortization of assets $ 1,013 $ 1,038 Interest on lease liabilities 469 489 Operating lease expense: Operating lease cost 2,232 2,263 Variable lease cost 270 264 Sublease income (49) (48) Total lease costs $ 3,935 $ 4,006 Leases as lessor Our lease revenue contains both minimum lease payments as well as variable lease payments. See Note 2 ‘Summary of Significant Accounting Policies’ for further details of our revenue streams and associated accounting treatment. The components of our lease revenue were as follows (unaudited and in thousands): Three months ended March 31, 2021 2020 Lease revenue: Minimum lease revenue $ 127,706 $ 107,485 Variable lease revenue (primarily recoveries from customers) 16,602 12,596 Total lease revenue $ 144,308 $ 120,081 |
Investments in Unconsolidated E
Investments in Unconsolidated Entity | 3 Months Ended |
Mar. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Entity | Investments in Unconsolidated EntityDuring the three months ended March 31, 2019, we formed an unconsolidated entity with Alinda Capital Partners (“Alinda”), an infrastructure investment firm. We contributed a hyperscale data center under development in Manassas, Virginia to the entity. The facility, and the previously executed 10-year operating lease agreement with a global cloud-based software company, was contributed to the unconsolidated entity in exchange for cash and noncash consideration in the form of equity interest in the entity that was measured at fair value pursuant to Topic 820. The equity interest received and any amounts due from the unconsolidated entity are recorded within our consolidated balance sheets and totaled $25.9 million and $22.6 million as of March 31, 2021 and December 31, 2020, respectively. We and Alinda each own a 50% interest in the entity. As we are not the primary beneficiary of the arrangement but have the ability to exercise significant influence, we concluded that the investment should be accounted for as an unconsolidated entity using equity method investment accounting. As of March 31, 2021 and December 31, 2020, the total assets of the entity were $145.8 million and $141.5 million, respectively. As of March 31, 2021 and December 31, 2020, the total debt outstanding, net of deferred financing costs, was $92.2 million and $90.1 million, respectively. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Below is a listing of our outstanding debt, including finance leases, as of March 31, 2021 and December 31, 2020 (in thousands): Weighted Average Effective Interest Rate at March 31, 2021 (1) Maturity Date March 31, December 31, (unaudited) (unaudited) Unsecured Credit Facility Revolving Credit Facility 1.36% December 17, 2023 $ 361,877 $ 392,337 Term Loan A 3.26% December 17, 2024 225,000 225,000 Term Loan B 3.30% April 27, 2025 225,000 225,000 Term Loan C 3.46% October 18, 2026 250,000 250,000 Term Loan D 1.45% January 15, 2026 250,000 250,000 3.875% Senior Notes 3.88% October 1, 2028 500,000 500,000 Finance Leases 4.35% 2031 - 2040 42,525 41,718 2.87% 1,854,402 1,884,055 Less net debt issuance costs (13,935) (14,562) Total outstanding debt, net $ 1,840,467 $ 1,869,493 _________________________ (1) The coupon interest rates associated with Term Loan A, Term Loan B, and Term Loan C incorporate the effects of our interest rate swaps in effect as of March 31, 2021. The annual remaining principal payment requirements of our debt securities as of March 31, 2021 per the contractual maturities, excluding extension options and excluding operating and finance leases, are as follows (unaudited and in thousands): 2021 (April - December) $ — 2022 — 2023 361,877 2024 225,000 2025 225,000 Thereafter 1,000,000 Total $ 1,811,877 As of March 31, 2021, we were in compliance with all of our covenants of our debt agreements. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments From time to time, we enter into derivative financial instruments to manage certain cash flow risks. Derivatives designated and qualifying as a hedge of the exposure to variability in the cash flows of a specific asset or liability that is attributable to a particular risk, such as interest rate risk, are considered cash flow hedges. Interest Rate Swaps Our objectives in using interest rate swaps are to reduce variability in interest expense and to manage exposure to adverse interest rate movements. To accomplish this objective, we primarily use interest rate swaps as part of our interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for us making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. As of March 31, 2021, we had interest rate swap agreements in place with an aggregate notional amount of $700 million. The forward swap agreements effectively fix the interest rate on $700 million of term loan borrowings, $225 million of swaps allocated to Term Loan A, $225 million allocated to Term Loan B and $250 million allocated to Term Loan C, through the current maturity dates of the respective term loans. We reflect our interest rate swap agreements, which are designated as cash flow hedges, at fair value as either assets or liabilities on the consolidated balance sheets within the “Other assets, net” or “Derivative liabilities” line items, as applicable. As of March 31, 2021 and December 31, 2020, the fair value of interest rate swaps represented an aggregate liability of $32.0 million and $49.8 million, respectively. The forward interest rate swap agreements are derivatives that currently qualify for hedge accounting whereby we record the effective portion of changes in fair value of the interest rate swaps in accumulated other comprehensive income or loss on the consolidated balance sheets and statements of comprehensive income which is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Any ineffective portion of a derivative's change in fair value is immediately recognized within net income (loss). The amount reclassified from other comprehensive income to interest expense on the consolidated statements of operations was an increase to interest expense of $3.4 million and $0.8 million for the three months ended March 31, 2021, and 2020, respectively. There was no ineffectiveness recognized for the three months ended March 31, 2021, and 2020. During the subsequent twelve months, beginning April 1, 2021, we estimate that $13.7 million will be reclassified from other comprehensive income as an increase to interest expense. Interest rate derivatives and their fair values as of March 31, 2021 and December 31, 2020 were as follows (unaudited and in thousands): Notional Amount Fixed One Month LIBOR rate per annum Fair Value March 31, 2021 December 31, 2020 Effective Date Expiration Date March 31, 2021 December 31, 2020 $ 25,000 $ 25,000 1.989 % January 2, 2018 December 17, 2021 $ (334) $ (447) 100,000 100,000 1.989 % January 2, 2018 December 17, 2021 (1,333) (1,788) 75,000 75,000 1.989 % January 2, 2018 December 17, 2021 (1,001) (1,342) 50,000 50,000 2.033 % January 2, 2018 April 27, 2022 (1,017) (1,248) 100,000 100,000 2.029 % January 2, 2018 April 27, 2022 (2,027) (2,490) 50,000 50,000 2.033 % January 2, 2018 April 27, 2022 (1,016) (1,248) 100,000 100,000 2.617 % January 2, 2020 December 17, 2023 (6,144) (7,191) 100,000 100,000 2.621 % January 2, 2020 April 27, 2024 (6,722) (8,000) 70,000 70,000 0.968 % March 2, 2020 October 18, 2026 232 (2,174) 30,000 30,000 0.973 % March 2, 2020 October 18, 2026 100 (938) 200,000 200,000 2.636 % December 17, 2021 December 17, 2023 (8,781) (9,648) 200,000 200,000 2.642 % April 27, 2022 April 27, 2024 (8,162) (9,500) 125,000 125,000 1.014 % December 17, 2023 December 17, 2024 336 (704) 100,000 100,000 1.035 % December 17, 2023 December 17, 2024 244 (584) 75,000 75,000 1.110 % December 17, 2023 October 18, 2026 1,230 (866) 100,000 100,000 1.088 % April 27, 2024 April 27, 2025 399 (540) 125,000 125,000 1.082 % April 27, 2024 April 27, 2025 513 (666) 75,000 75,000 0.977 % April 27, 2024 October 18, 2026 1,503 (422) $ (31,980) $ (49,796) Power Purchase Agreements In March 2019, we entered into two 10-year agreements to purchase renewable energy equal to the expected electricity needs of our data centers in Chicago, Illinois and Piscataway, New Jersey. These arrangements currently qualify for hedge accounting whereby we record the changes in fair value of the instruments in “Accumulated other comprehensive income” or loss on the consolidated balance sheets and statements of comprehensive income which is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The amount reclassified from other comprehensive income to utilities expense on the consolidated statements of operations was a reduction to utilities expense of $0.1 million and an increase to utilities expense of $0.4 million for the three months ended March 31, 2021 and 2020, respectively. We currently reflect these agreements, which are designated as cash flow hedges, at fair value as liabilities on the consolidated balance sheets within the “Derivative liabilities” line item. Power purchase agreement derivatives and their fair values as of March 31, 2021 and December 31, 2020 were as follows (unaudited and in thousands): Fair Value Counterparty Facility Effective Date Expiration Date March 31, 2021 December 31, 2020 Calpine Energy Solutions, LLC Piscataway March 8, 2019 February 28, 2029 $ (2,534) $ (2,162) Calpine Energy Solutions, LLC Chicago March 8, 2019 February 28, 2029 (2,237) (1,764) $ (4,771) $ (3,926) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesWe are subject to various routine legal proceedings and other matters in the ordinary course of business. We currently do not have any litigation that would have a material adverse impact on our financial statements. |
Partners' Capital, Equity and I
Partners' Capital, Equity and Incentive Compensation Plans | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Partners' Capital, Equity and Incentive Compensation Plans | Partners’ Capital, Equity and Incentive Compensation Plans QualityTech, LP QTS has the full power and authority to do all the things necessary to conduct the business of the Operating Partnership. As of March 31, 2021, the Operating Partnership had four classes of limited partnership units outstanding: Series A Preferred Units, Series B Convertible Preferred Units, Class A units of limited partnership interest (“Class A units”) and Class O LTIP units of limited partnership units (“Class O units”). The Class A units currently outstanding are now redeemable on a one-for-one exchange rate at any time for cash or shares of Class A common stock of QTS. The Company may in its sole discretion elect to assume and satisfy the redemption amount with cash or its shares. Class O units were issued upon grants made under the QualityTech, LP 2010 Equity Incentive Plan (the “2010 Equity Incentive Plan”). Class O units are pari passu with Class A units. Each Class O unit is convertible into Class A units by the Operating Partnership at any time or by the holder at any time based on formulas contained in the partnership agreement. QTS Realty Trust, Inc. In connection with its initial public offering on October 13, 2013 ("IPO"), QTS issued Class A common stock and Class B common stock. Class B common stock entitles the holder to 50 votes per share and was issued to enable our Chief Executive Officer to exchange 2% of his Operating Partnership units so he may have a vote proportionate to his economic interest in the Company. Also in connection with its IPO, QTS adopted the QTS Realty Trust, Inc. 2013 Equity Incentive Plan (the “2013 Equity Incentive Plan”), pursuant to which the Company may issue shares of Class A common stock pursuant to various types of awards. As of March 31, 2021, 5.9 million shares of Class A common stock were authorized and available for issuance under the 2013 Equity Incentive Plan. On March 4, 2021, the Board of Directors approved an amendment and restatement of the 2013 Equity Incentive Plan, to among other things, increase the number of shares available for issuance under the plan by an additional 2.0 million shares, which amendment is expected to be approved at our 2021 Annual Meeting of Stockholders on May 4, 2021. In March 2019, the Compensation Committee completed a redesign of the long-term incentive program for executive officers to include the following types of awards: a. Performance-Based FFO Unit Awards — performance-based restricted share unit awards, which may be earned based on Operating Funds From Operations (“OFFO”) per diluted share measured over a two b. Performance-Based Relative TSR Unit Awards — performance-based restricted share unit awards, which may be earned based on total stockholder return (“TSR”) as compared to the MSCI U.S. REIT Index (the “Index”) over a three c. Restricted Stock Awards — the restricted stock awards vest as to 33% of the shares subject to awards on the first anniversary of the date of grant and as to 8.375% of the shares subject to the awards each quarter-end thereafter, subject to the named executive officer’s continued service as an employee as of each vesting date. The following is a summary of award activity under the 2010 Equity Incentive Plan and 2013 Equity Incentive Plan and related information for the three months ended March 31, 2021 (unaudited) : 2010 Equity Incentive Plan 2013 Equity Incentive Plan Numbers of Class O units Weighted average exercise price Weighted average fair value Options Weighted average exercise price Weighted average fair value Restricted Stock / Deferred Stock Weighted average fair value at grant date TSR Units Weighted average fair value at grant date FFO Units Weighted average fair value at grant date Outstanding at December 31, 2020 75,435 $ 25.00 $ 6.11 1,936,407 $ 38.55 $ 7.26 416,496 $ 52.20 168,552 $ 66.90 132,267 $ 51.45 Granted — — — 96,366 59.06 10.53 270,464 59.07 105,402 64.72 105,402 59.06 Exercised/Vested (1) — — — (51,220) 38.63 7.91 (123,438) 54.57 — — — — Cancelled/Expired — — — — — — (3,716) 57.24 — — — — Outstanding at March 31, 2021 75,435 $ 25.00 $ 6.11 1,981,553 $ 39.55 $ 7.40 559,806 $ 54.96 273,954 $ 66.06 237,669 $ 54.82 ____________________ (1) Represents (i) Class O units which were converted to Class A units, (ii) options to purchase Class A common stock which were exercised, and (iii) the Class A common stock that has been released from restriction and which was not surrendered by the holder to satisfy their statutory minimum federal and state tax obligations associated with the vesting of restricted common stock, with respect to the applicable column. The assumptions and fair values for restricted stock and options to purchase shares of Class A common stock granted for the three months ended March 31, 2021 are included in the following table on a per unit basis (unaudited). Options to purchase shares of Class A common stock were valued using the Black-Scholes model and TSR Units were valued using a Monte-Carlo simulation that leveraged similar assumptions to those used to value the Class A common stock and FFO Units. Three Months Ended March 31, 2021 Fair value of FFO units and restricted stock granted $ 59.06 - $ 61.17 Fair value of TSR units granted $ 64.72 Fair value of options granted $ 3.79 - $ 11.36 Expected term (years) 0.4 - 5.5 Expected volatility 28 % - 31 % Expected dividend yield 3.39 % Expected risk-free interest rates 0.06 % - 0.90 % The following tables summarize information about awards outstanding as of March 31, 2021 (unaudited). Operating Partnership Awards Outstanding Exercise prices Awards outstanding Weight average remaining vesting period Class O Units $ 25.00 75,435 — Total Operating Partnership awards outstanding 75,435 QTS Realty Trust, Inc. Awards Outstanding Exercise prices Awards outstanding Weight average remaining vesting period Restricted stock $ — 559,806 1.1 TSR units — 273,954 1.1 FFO units — 237,669 0.8 Options to purchase Class A common stock $ 21.00 - $ 59.06 1,981,553 0.9 Total QTS Realty Trust, Inc. awards outstanding 3,052,982 Any awards outstanding as of the end of the period have been valued as of the grant date and generally vest ratably over a defined service period. As of March 31, 2021, all restricted Class A common stock, TSR units, and FFO units outstanding were unvested and approximately 0.1 million options to purchase Class A common stock were outstanding and unvested. As of March 31, 2021, we had $51.4 million of unrecognized equity-based compensation expense which will be recognized over a remaining weighted-average vesting period of approximately 1 year. The total intrinsic value of Class O units and options to purchase Class A common stock outstanding at March 31, 2021 was $47.5 million. Dividends and Distributions The following tables present quarterly cash dividends and distributions paid to our common and preferred stockholders for the three months ended March 31, 2021 and 2020 (unaudited): Three Months Ended March 31, 2021 Record Date Payment Date Per Share Rate Aggregate Dividend/Distribution Amount (in millions) Common Stock December 22, 2020 January 7, 2021 $ 0.47 $ 33.4 $ 33.4 Series A Preferred Stock December 31, 2020 January 15, 2021 $ 0.45 $ 1.9 $ 1.9 Series B Preferred Stock December 31, 2020 January 15, 2021 $ 1.63 $ 5.1 $ 5.1 Three Months Ended March 31, 2020 Record Date Payment Date Per Share Rate Aggregate Dividend/Distribution Amount (in millions) Common Stock December 20, 2019 January 7, 2020 $ 0.44 $ 28.6 $ 28.6 Series A Preferred Stock December 31, 2019 January 15, 2020 $ 0.45 $ 1.9 $ 1.9 Series B Preferred Stock December 31, 2019 January 15, 2020 $ 1.63 $ 5.1 $ 5.1 Additionally, subsequent to March 31, 2021, we paid the following dividends: • On April 6, 2021, we paid our regular quarterly cash dividend of $0.50 per common share to stockholders of record as of the close of business on March 19, 2021. • On April 15, 2021, we paid a quarterly cash dividend of approximately $0.45 per share on our Series A Preferred Stock to holders of Series A Preferred Stock of record as of the close of business on March 31, 2021. • On April 15, 2021, we paid a quarterly cash dividend of approximately $1.63 per share on our Series B Preferred Stock to holders of Series B Preferred Stock of record as of the close of business on March 31, 2021. Equity Issuances Class A Common Stock Because we had utilized substantially all of the offering capacity of the Prior ATM Program, in May 2020, we established a new “at-the-market” equity offering program (the “Current ATM Program”) pursuant to which we may issue, from time to time, up to $500 million of our Class A common stock, which may include shares to be sold on a forward basis. As under the Prior ATM Program, the use of forward sales under the Current ATM Program generally allows us to lock in a price on the sale of shares of our Class A common stock when sold by the forward sellers, but defer receiving the net proceeds from such sales until the shares of our Class A common stock are issued at settlement on a later date. We expect to physically settle (by delivering shares of common stock) the forward sales under the Current ATM Program prior to the first anniversary date of each respective transaction. We have concluded that the forward sale agreements meet the derivative scope exception for certain contracts involving an entity’s own equity. Our earnings per share dilution resulting from the forward sale agreements, if any, is determined using the two-class method. In June 2020, we conducted an underwritten offering of 4,400,000 shares of our common stock on a forward basis. During the three months ended March 31, 2021 we settled a portion of the 4,400,000 shares subject to the forward sales agreements. We expect to physically settle the remaining forward sale agreements (by the delivery of shares of common stock) and receive proceeds, subject to certain adjustments, from the sale of those shares of common stock by June 30, 2021, although we have the right to elect settlement prior to that time. We have concluded that the forward sale agreements meet the derivative scope exception for certain contracts involving an entity’s own equity. Our earnings per share dilution resulting from the forward sale agreements, if any, is determined using the two-class method. The following table represents a summary of our aggregate forward equity activity under the Prior ATM Program, Current ATM Program and our underwritten offerings from December 31, 2020 through March 31, 2021: Offering Program Forward Net Proceeds Available/(Received) (1) Shares and net proceeds available as of December 31, 2020 9,961 $ 581,598 (2) Forward Equity - Sales 1,504 91,620 Forward Equity - Settlements (3,865) (3) (215,964) Shares and net proceeds available as of March 31, 2021 7,600 $ 457,254 ____________________ (1) Net Proceeds Available remain subject to certain adjustments until settled. (2) Proceeds available reported in the Form 10-K for the period ended December 31, 2020 were $587.6 million. The $6 million decrease is primarily due to QTS’ declared dividends, which reduces cash expected to be received upon full physical settlement of the forward shares. (3) Represents the number of forward shares we elected to physically settle during the period. Preferred Stock As of March 31, 2021, we had outstanding 4,280,000 shares of 7.125% Series A Cumulative Redeemable Perpetual Preferred Stock ("Series A Preferred Stock") with a liquidation preference of $25.00 per share as well as 3,162,500 shares of 6.50% Series B Cumulative Convertible Perpetual Preferred Stock (“Series B Preferred Stock”) with a liquidation preference of $100.00 per share. Dividends on the Series A Preferred Stock and Series B Preferred Stock are payable quarterly in arrears on or about the 15th day of each January, April, July and October. The Series A Preferred Stock does not have a stated maturity date. On and after March 15, 2023, the Company may, at its option, redeem the Series A Preferred Stock, in whole, at any time, or in part, from time to time, for cash at a redemption price of $25.00 per share, plus any accrued and unpaid dividends (whether or not declared) to, but not including, the date of redemption. Under certain conditions, upon the occurrence of a change of control, we may redeem the Series A Preferred Stock in whole, at any time, or in part, from time to time within 120 days after the occurrence of such event and the holders will have the right to convert their Series A Preferred Stock to Class A common stock in accordance with the terms of the Series A Preferred Stock. The Series B Preferred Stock does not have a stated maturity date. The Series B Preferred Stock is convertible by holders into shares of Class A common stock at any time at the then-prevailing conversion rate. The conversion rate as of March 31, 2021 is 2.1436 shares of the Company’s Class A common stock per share of Series B Preferred Stock. The Series B Preferred Stock is not redeemable by the Company. At any time on or after July 20, 2023, the Company may at its option cause all (but not less than all) outstanding shares of the Series B Preferred Stock to be automatically converted into the Company’s Class A common stock at the then-prevailing conversion rate if the closing sale price of the Company’s Class A common stock is equal to or exceeds 150% of the then-prevailing conversion price for at least 20 trading days in a period of 30 consecutive trading days, including the last trading day of such 30-day period, ending on the trading day prior to the issuance of a press release announcing the mandatory conversion. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions As described further in Note 5 ‘Investments in Unconsolidated Entity’, during the three months ended March 31, 2019, we formed an unconsolidated entity with Alinda, an infrastructure investment firm. We contributed a hyperscale data center under development in Manassas, Virginia to the entity. The facility, and the previously executed operating lease to a global cloud-based software company pursuant to a 10-year lease agreement, was contributed in exchange for cash and noncash consideration in the form of equity interest in the entity that was measured at fair value pursuant to ASC Topic 820. We and Alinda each own a 50% interest in the entity. Under the unconsolidated entity operating agreement, we serve as the entity’s operating member, subject to authority and oversight of a board appointed by us and Alinda, and separately we serve as manager and developer of the facility in exchange for management and development fees. During the three months ended March 31, 2021 and 2020, we received $0.3 million and $0.5 million in development fees from the unconsolidated entity, respectively, as well as $0.3 million and $0.2 million in management fees from the unconsolidated entity, respectively. In addition, we periodically execute transactions with entities affiliated with our Chairman and Chief Executive Officer. Such transactions include building operating lease payments and receipts as well as reimbursement for the use of a private aircraft service by our officers and directors. The transactions which occurred during the three months ended March 31, 2021 and 2020 are outlined below (unaudited and in thousands): Three Months Ended 2021 2020 Tax, utility, insurance and other reimbursement $ 169 $ 176 Rent expense 260 257 Total $ 429 $ 433 |
Noncontrolling Interest
Noncontrolling Interest | 3 Months Ended |
Mar. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | Noncontrolling Interest Concurrently with the completion of the IPO, we consummated a series of transactions pursuant to which QTS became the sole general partner and majority owner of QualityTech, LP, which then became its operating partnership. The previous owners of QualityTech, LP retained 21.2% ownership of the Operating Partnership as of the date of the IPO. Commencing at any time beginning November 1, 2014, at the election of the holders of the noncontrolling interest, the currently outstanding Class A units of the Operating Partnership are redeemable for cash or, at the election of the Company, Class A common stock of the Company on a one-for-one basis. As of March 31, 2021, the noncontrolling ownership interest percentage of QualityTech, LP was 8.6%. |
Earnings per share
Earnings per share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share Basic income (loss) per share is calculated by dividing the net income (loss) attributable to common shares by the weighted average number of common shares outstanding during the period. Diluted income (loss) per share adjusts basic income per share for the effects of potentially dilutive common shares. Unvested restricted stock awards and our forward sale contracts described in Note 9 contain non-forfeitable rights to dividends and thus are participating securities and are included in the computation of basic earnings per share pursuant to the two-class method for all periods presented. The two-class method is an earnings allocation formula that treats a participating security as having rights to undistributed earnings that would otherwise have been available to common stockholders. Accordingly, service-based restricted stock awards and the forward sale contracts were included in the calculation of basic earnings per share using the two-class method for all periods presented to the extent outstanding during the period. The computation of basic and diluted net income (loss) per share is as follows (in thousands, except per share data, and unaudited): Three Months Ended March 31, 2021 2020 Numerator: Net income $ 7,918 $ 8,120 Income attributable to noncontrolling interests (79) (110) Preferred stock dividends (7,045) (7,045) Earnings attributable to participating securities (5,285) (1,596) Net loss available to common stockholders after allocation to participating securities $ (4,491) $ (631) Denominator: Weighted average shares outstanding - basic 64,442 58,038 Effect of Class O units, TSR units, FFO units and options to purchase Class A common stock on an "as if" converted basis — — Weighted average shares outstanding - diluted 64,442 58,038 Basic net loss per share * $ (0.07) $ (0.01) Diluted net loss per share * $ (0.07) $ (0.01) ______________________________ * Note: The calculations of basic and diluted net income (loss) per share above do not include the following number of Class A partnership units, Class O units, TSR units, FFO units and options to purchase common stock on an “as if” converted basis, and the effects of Series B Convertible preferred stock on an “as if” converted basis, as their respective inclusions would have been antidilutive: Three Months Ended March 31, 2021 2020 Class A Partnership units 6,466 6,671 Class O units, TSR units, FFO units and options to purchase common stock on an "as if" converted basis 1,212 655 Series B Convertible preferred stock on an "as if" converted basis 6,779 6,749 |
Contracts with Customers
Contracts with Customers | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Contracts with Customers | Contracts with Customers Future minimum payments to be received under non-cancelable customer contracts including both lease rental revenue components and non-lease revenue components that are accounted for as a combined lease component in accordance with the practical expedient provided by ASC Topic 842 which is discussed in Note 2 above (inclusive of payments for contracts which have not yet commenced, and exclusive of variable lease revenue such as recoveries of operating costs from customers) are as follows for the years ending December 31 (unaudited and in thousands): 2021 (April - December) $ 349,511 2022 394,619 2023 296,826 2024 240,951 2025 186,194 Thereafter 554,414 Total $ 2,022,515 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC Topic 825, Financial Instruments, requires disclosure of fair value information about financial instruments, whether or not recognized in the consolidated balance sheets, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based upon the application of discount rates to estimated future cash flows based upon market yields or by using other valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair value. Accordingly, fair values are not necessarily indicative of the amounts we could realize on disposition of the financial instruments. The use of different market assumptions and/or estimation methodologies may have a material effect on estimated fair value amounts. Short-term instruments: The carrying amounts of cash and cash equivalents and restricted cash approximate fair value. Derivative Contracts: Interest rate swaps Currently, we use interest rate swaps to manage our interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. To comply with the provisions of fair value accounting guidance, we incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by us and our counterparties. However, as of March 31, 2021, we assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. We do not have any fair value measurements on a recurring basis using significant unobservable inputs (Level 3) as of March 31, 2021 or December 31, 2020. Power Purchase Agreements In March 2019, we began using energy hedges to manage risk related to energy prices. The inputs used to value the derivatives primarily fall within Level 2 of the fair value hierarchy, and valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each contract. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including futures curves. The fair values of the energy hedges are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future energy rates (forward curves) derived from observable market futures curves. To comply with the provisions of fair value accounting guidance, we incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Unsecured Credit facility, Term Loan D and 3.875% Senior Notes: As market interest rates have fluctuated compared to contracted interest rates, the fair value of our unsecured credit facility approximated the carrying value of the credit facility less the fair value of the interest rate swap liability. Our Term Loan D did not have interest rates which were materially different than current market conditions and therefore, the fair value approximated the carrying value. The fair value of our 3.875% Senior Notes was estimated using Level 2 “significant other observable inputs,” primarily based on quoted market prices for the same or similar issuances. At March 31, 2021, the fair value of the 3.875% Senior Notes was approximately $500.0 million. Finance Leases: The fair value of our finance leases was estimated in the same manner as the unsecured credit facility above. Similarly, each of these instruments did not have interest rates which were materially different than current market conditions and therefore, the fair value of each instrument approximated the respective carrying values. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsIn April 2021, we paid our regular quarterly cash dividends on our common stock, Series A Preferred Stock and Series B Preferred Stock. See the ‘Dividends and Distributions’ section of Note 9 for additional details. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation – The accompanying financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and in compliance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). These unaudited consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements and related notes and management’s discussion and analysis included in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 26, 2021. The consolidated balance sheet data included herein as of December 31, 2020 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. As outlined in our Annual Report on Form 10-K for the year ended December 31, 2020, the Operating Partnership meets the definition and criteria of a variable interest entity (“VIE”) in accordance with Accounting Standards Codification (“ASC”) Topic 810 Consolidation , and the Company is the primary beneficiary of the VIE. The Company’s only material asset is its ownership interest in the Operating Partnership, and consequently, all of its assets and liabilities represent those assets and liabilities of the Operating Partnership. The Company’s debt is an obligation of the Operating Partnership where the creditors may have recourse, under certain circumstances, against the credit of the Company. |
Use of Estimates | Use of Estimates – The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of fixed assets, allowances for doubtful accounts and deferred tax assets and the valuation of derivatives, real estate assets, acquired intangible assets and certain accruals. The impacts of the COVID-19 pandemic increases uncertainty, which has reduced our ability to use past results to estimate future performance. Accordingly, our estimates and judgments may be subject to greater volatility than has been the case in the past. |
Principles of Consolidation | Principles of Consolidation – The consolidated financial statements of QTS Realty Trust, Inc. include the accounts of QTS Realty Trust, Inc. and its controlled subsidiaries. All significant intercompany accounts and transactions have been eliminated in the financial statements. |
Variable Interest Entities (VIEs) | Variable Interest Entities (VIEs) – We determine whether an entity is a VIE and, if so, whether it should be consolidated by utilizing judgments and estimates that are inherently subjective. The determination of whether an entity in which we hold a direct or indirect variable interest is a VIE is based on several factors, including whether the entity’s total equity investment at risk upon inception is sufficient to finance the entity’s activities without additional subordinated financial support. We make judgments regarding the sufficiency of the equity at risk based first on a qualitative analysis, and then a quantitative analysis, if necessary. We analyze any investments in VIEs to determine if we are the primary beneficiary. In evaluating whether we are the primary beneficiary, we evaluate our direct and indirect economic interests in the entity. Determining which reporting entity, if any, is the primary beneficiary of a VIE is primarily a qualitative approach focused on identifying which reporting entity has both (1) the power to direct the activities of a VIE that most significantly impact such entity’s economic performance and (2) the obligation to absorb losses or the right to receive benefits from such entity that could potentially be significant to such entity. Performance of that analysis requires the exercise of judgment. We consider a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE’s economic performance including, but not limited to, the ability to direct financing, leasing, construction and other operating decisions and activities. In addition, we consider the rights of other investors to participate in those decisions, to replace the manager and to sell or liquidate the entity. We determine whether we are the primary beneficiary of a VIE at the time we become involved with a variable interest entity and reconsider that conclusion upon a reconsideration event. As of March 31, 2021, we had one unconsolidated entity that was considered a VIE for which we are not the primary beneficiary. Our maximum exposure to losses associated with this VIE is limited to our net investment, which was approximately $25.9 million as of March 31, 2021. |
Real Estate Assets | Real Estate Assets – Real estate assets are reported at cost. All capital improvements for the income-producing properties that extend their useful lives are capitalized to individual property improvements and depreciated over their estimated useful lives. Depreciation for real estate assets is generally provided on a straight-line basis over 40 years from the date the property was placed in service. Property improvements are depreciated on a straight-line basis over the life of the respective improvement ranging from 20 to 40 years from the date the components were placed in service. Leasehold improvements are depreciated over the lesser of 20 years or through the end of the respective life of the lease. Repairs and maintenance costs are expensed as incurred. For the three months ended March 31, 2021, depreciation expense related to real estate assets and non-real estate assets was $42.7 million and $2.9 million, respectively, for a total of $45.6 million. For the three months ended March 31, 2020, depreciation expense related to real estate assets and non-real estate assets was $32.3 million and $3.4 million, respectively, for a total of $35.7 million. We capitalize certain real estate development costs, including internal costs incurred in connection with development. The capitalization of costs during the construction period (including interest and related loan fees, property taxes and other direct and indirect project costs) begins when development efforts commence and ends when the asset is ready for its intended use. The capitalization of internal costs increases construction in progress recognized during development of the related property and the cost of the real estate asset when placed into service and such costs are depreciated over its estimated useful life. Capitalization of such costs, excluding interest, aggregated to $5.5 million and $4.5 million for the three months ended March 31, 2021 and 2020, respectively. Interest is capitalized during the period of development by applying our weighted average effective borrowing rate to the actual development and other capitalized costs paid during the construction period. Interest is capitalized until the property is ready for its intended use. Interest costs capitalized totaled $7.0 million and $8.1 million for the three months ended March 31, 2021 and 2020, respectively. |
Acquisitions and Sales | Acquisitions and Sales – Acquisitions of real estate and other entities are either accounted for as asset acquisitions or business combinations depending on facts and circumstances. In developing estimates of fair value of acquired assets and assumed liabilities, management analyzes a variety of factors including market data, estimated future cash flows of the acquired operations, industry growth rates, current replacement cost for fixed assets and market rate assumptions for contractual obligations. Such a valuation requires management to make significant estimates and assumptions, particularly with respect to the intangible assets. |
Impairment of Long-Lived Assets, Intangible Assets and Goodwill - | Impairment of Long-Lived Assets, Intangible Assets and Goodwill – We review our long-lived assets, intangible assets and equity method investments for impairment when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Recoverability of assets to be held and used is measured by comparison of the carrying amount to the future net cash flows, undiscounted and without interest, expected to be generated by the asset group. If the net carrying value of the asset group exceeds the value of the undiscounted cash flows, the fair value of the asset group is assessed and may be considered impaired. An impairment loss is recognized based on the excess of the carrying amount of the impaired asset over its fair value. No impairment losses were recorded for the three months ended March 31, 2021 and March 31, 2020. The fair value of goodwill is the consideration transferred in a business combination which is not allocable to identifiable intangible and tangible assets. Goodwill is subject to at least an annual assessment for impairment. In connection with the goodwill impairment evaluation that we performed as of October 1, 2020, we determined qualitatively that it is not more likely than not that the fair value of our one reporting unit was less than the carrying amount, thus we did not perform a quantitative analysis. As we continue to operate and assess our goodwill at the consolidated level for our single reporting unit and our market capitalization significantly exceeds our net asset value, further analysis was not deemed necessary as of March 31, 2021. |
Cash and Cash Equivalents | Cash and Cash Equivalents – We consider all demand deposits and money market accounts purchased with a maturity date of three months or less at the date of purchase to be cash equivalents. Our account balances at one or more institutions periodically exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance coverage and, as a result, there is concentration of credit risk related to amounts on deposit in excess of FDIC coverage. We mitigate this risk by depositing a majority of our funds with several major financial institutions. We also have not experienced any losses and do not believe that the risk is significant. |
Revenue Recognition | Revenue Recognition – We derive our revenues from leases with customers for data center space which include lease components and nonlease revenue components, such as power, tenant recoveries, and managed services. We have elected the available practical expedient under ASC Topic 842, Leases , to combine our nonlease revenue components that have the same pattern of transfer as the related operating lease component into a single combined lease component. The single combined component is accounted for under ASC Topic 842 if the lease component is the predominant component and is accounted for under ASC Topic 606 if the nonlease components are the predominant components. In our contracts, the single combined component is accounted for under ASC Topic 842 as the lease component is the predominant component. A description of each of our disaggregated revenue streams is as follows: Rental Revenue Our leases with customers are classified as operating leases and rental revenue is recognized on a straight-line basis over the customer lease term. Occasionally, customer leases include options to extend or terminate the lease agreements. We do not include any of these extension or termination options in a customer’s lease term for lease classification purposes or recognizing rental revenue unless it is reasonably certain the customer will exercise these extension or termination options. Rental revenue also includes revenue from power delivery on fixed power arrangements, whereby customers are billed and pay a fixed monthly fee per committed available amount of connected power. These fixed power arrangements require us to provide a series of distinct services and to stand ready to deliver the power over the contracted term which is co-terminus with the lease. Customer fixed power arrangements have the same pattern of transfer over the lease term as the lease component and are therefore combined with the lease component to form a single lease component that is recognized over the term of the lease on a straight-line basis. In addition, rental revenue includes straight-line rent. Straight-line rent represents the difference in rents recognized during the period versus amounts contractually due pursuant to the underlying leases and is recorded as deferred rent receivable/payable in the consolidated balance sheets. For lease agreements that provide for scheduled rent increases, rental income is recognized on a straight-line basis over the non-cancellable term of the leases, which commences when control of the space has been provided to the customer. The amount of the straight-line rent receivable on the balance sheet included in rents and other receivables, net was $71.0 million and $63.6 million as of March 31, 2021 and December 31, 2020, respectively. Rental revenue also includes amortization of set-up fees which are amortized over the term of the respective lease as discussed below in the "Deferred Income" section. Variable Lease Revenue from Recoveries Certain customer leases contain provisions under which customers reimburse us for power and cooling-related charges as well as a portion of the property’s real estate taxes, insurance and other operating expenses. Recoveries of power and cooling-related expenses relate specifically to our variable power arrangements, whereby customers pay variable monthly fees for the specific amount of power utilized at the current utility rates. Our performance obligation is to stand ready to deliver power over the life of the customer contract up to a contracted power capacity. Customers have the flexibility to increase or decrease the amount of power consumed, and therefore sub-metered power revenue is constrained at contract inception. The reimbursements are included in revenue as recoveries from customers and are recognized each month as the uncertainty related to the consideration is resolved (i.e. we provide power to our customers) and customers utilize the power. Reimbursement of real estate taxes, insurance, common area maintenance, or other operating expenses are accounted for as variable payments under lease guidance pursuant to the practical expedient and are recognized as revenue in the period that the expenses are recognized. Variable lease revenue from recoveries discussed above, including power, common area maintenance or other operating costs, have the same pattern of transfer over the lease term as the lease component and are therefore combined with the lease component to form a single lease component. Variable lease revenue from recoveries is included within the “rental” line item on the statements of operations. Other Revenue Other revenue primarily consists of revenue from our managed service offerings, as well as revenue earned from partner channel, management and development fees. We, through our taxable REIT subsidiaries (“TRS”), may provide use of our managed services to our customers on an individual or combined basis. In our managed services offering, the TRS’s performance obligation is to provide services (e.g. cloud hosting, data backup, data storage or data center personnel labor hours) to facilitate a fully integrated information technology (“IT”) outsourcing environment over a contracted term. Although underlying services may vary, over the contracted term monthly service offerings are substantially the same and we account for the services as a series of distinct services in accordance with ASC Topic 606. Service fee revenue is recognized as the revenue is earned, which generally coincides with the services being provided. As we have the right to consideration from customers in an amount that corresponds directly with the value to the customer of the TRS’s performance of providing continuous services, we recognize monthly revenue for the amount invoiced. With respect to the transaction price allocated to remaining performance obligations within our managed service contracts, we have elected to use the optional exemption provided by ASC Topic 606 whereby we are not required to estimate the total transaction price allocated to remaining performance obligations as we apply the “right-to-invoice” practical expedient. As described above, the nature of our performance obligation in these contracts is to provide monthly services that are substantially the same and accounted for as a series of distinct services. These contracts generally have a remaining term ranging from month-to-month to three years. Management fees and other revenues are generally received from our unconsolidated entity properties as well as third parties. Management fee revenue is earned based on a contractual percentage of unconsolidated entity property revenue. Development fee revenue is earned on a contractual percentage of hard costs to develop a property. We recognize revenue for these services provided when earned based on the performance criteria in ASC Topic 606, with such revenue recorded in “Other” revenue on the consolidated statements of operations. Leases as Lessee – We determine if an arrangement is a lease at inception. If the contract is considered a lease, we evaluate leased property to determine whether the lease should be classified as a finance or operating lease in accordance with U.S. GAAP. We periodically enter into finance leases for certain data center facilities, equipment, and fiber optic transmission cabling. Finance lease assets are included within the “Buildings, improvements and equipment” line item of the consolidated balance sheets and finance lease liabilities are included within “Finance leases” line item of the consolidated balance sheets. In addition, we lease certain real estate (primarily land or real estate space) under operating lease agreements with such assets included within the “Operating lease right of use assets, net” line item of the consolidated balance sheets and the associated lease liabilities included within the “Operating lease liabilities” line item on the consolidated balance sheets. |
Allowance for Uncollectible Accounts Receivable | Allowance for Uncollectible Accounts Receivable – We record a provision for uncollectible accounts if a receivable balance relating to lease components from an individual contract is considered by management not to be probable of collection, and this provision is recorded as a reduction to leasing revenues. We also record a general provision of estimated uncollectible tenant receivables based on general probability of collection in accordance with ASC 450-20 Loss Contingencies |
Deferred Income | Deferred Income – Deferred income generally results from non-refundable charges paid by the customer at lease inception to prepare their space for occupancy. We record this initial payment, commonly referred to as set-up fees, as a deferred income liability which amortizes into rental revenue over the term of the related lease on a straight-line basis. Deferred income was $93.5 million and $85.4 million as of March 31, 2021 and December 31, 2020, respectively. Additionally, $6.4 million and $3.9 million of deferred income was amortized into revenue for the three months ended March 31, 2021 and 2020, respectively. |
Equity-based Compensation | Equity-based Compensation – Equity-based compensation costs are measured based upon their estimated fair value on the date of grant or modification and amortized ratably over their respective service periods. We have elected to account for forfeitures as they occur. Equity-based compensation expense was $6.9 million and $4.9 million for the three months ended March 31, 2021 and 2020, respectively. |
Segment Information | Segment Information – We manage our business as one operating segment and thus one reportable segment consisting of a portfolio of investments in multiple data centers. |
Customer Concentrations | Customer Concentrations – During the three months ended March 31, 2021, one of our customers exceeded 10% of total revenues, representing approximately 11% of total revenues for the three months ended March 31, 2021. As of March 31, 2021, three of our customers exceeded 5% of trade accounts receivable (which excludes straight-line rent receivables). In aggregate, these three customers accounted for approximately 53% of trade accounts receivable. One of these customers individually exceeded 10% of total trade accounts receivable representing 40% of total trade accounts receivable. |
Income Taxes | Income Taxes – We provide for income taxes during interim periods based on the estimated effective tax rate for the year and any discrete adjustments. The effective tax rate is subject to change in the future due to various factors such as the operating performance of the taxable REIT subsidiaries, tax law changes, and future business acquisitions or divestitures. The taxable subsidiaries’ effective tax rates were (7.8)% and 13.0% for the three months ended March 31, 2021 and 2020, respectively. |
Fair Value Measurements | Fair Value Measurements – ASC Topic 820, Fair Value Measurement , emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, a fair value hierarchy is established that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. As of March 31, 2021, we valued our derivative instruments primarily utilizing Level 2 inputs. See Note 14 – ‘Fair Value of Financial Instruments’ for additional details. |
New Accounting Pronouncements | New Accounting Pronouncements In January 2020, the FASB issued ASU 2020-1, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 , which clarifies the interaction between the accounting for equity securities under Topic 321, the accounting for equity method investments in Topic 323, and the accounting for certain forward contracts and purchased options in Topic 815. ASU 2020-1 is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. We adopted this ASU effective January 1, 2021, and the provisions of the standard did not have a material impact on our consolidated financial statements. Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . ASU 2020-4 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-4 is optional and may be elected over time as reference rate reform activities occur. The standard is effective for all entities as of March 12, 2020 through December 31, 2022. An entity can elect to apply the amendments as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to that date that the financial statements are available to be issued. In January 2021, the FASB issued ASU 2021-1 Reference Rate Reform (Topic 848): Scope, which updated the standard to clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. Beginning in the first quarter of 2020, we have applied the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. We continue to evaluate the impact of the guidance but we do not expect the provisions of the standard will have a material impact on our consolidated financial statements. We determined all other recently issued accounting pronouncements will not have a material impact on our consolidated financial statements or do not materially apply to our operations. |
Real Estate Assets and Constr_2
Real Estate Assets and Construction in Progress (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Real Estate [Abstract] | |
Summary of Cost of Owned and Leased Properties by the Company | The following is a summary of our cost of owned or leased properties as of March 31, 2021 and December 31, 2020 (in thousands): As of March 31, 2021 (unaudited): Property Location Land Buildings, Improvements and Equipment Construction in Progress Total Cost Ashburn, Virginia Campus (1) $ 16,476 $ 391,247 $ 219,065 $ 626,788 Atlanta, Georgia Campus (2) 55,158 771,045 183,319 1,009,522 Chicago, Illinois 9,400 251,676 131,322 392,398 Dulles, Virginia 3,154 55,580 4,220 62,954 Eemshaven, Netherlands 5,153 20,991 47,859 74,003 Fort Worth, Texas 9,079 124,481 3,350 136,910 Groningen, Netherlands 1,821 11,324 3,249 16,394 Hillsboro, Oregon 18,414 47,364 72,033 137,811 Irving, Texas 8,606 409,565 89,516 507,687 Leased Facilities (3) — 83,180 60 83,240 Manassas, Virginia Campus (4) — 37 90,947 90,984 Phoenix, Arizona (5) — — 38,063 38,063 Piscataway, New Jersey 7,466 122,599 39,951 170,016 Princeton, New Jersey 20,700 35,267 9 55,976 Richmond, Virginia 2,180 235,381 128,911 366,472 Sacramento, California 1,481 66,304 125 67,910 Santa Clara, California (6) — 117,522 16,871 134,393 Suwanee, Georgia (Atlanta-Suwanee) 3,521 184,975 7,607 196,103 Other (7) 2,213 36,950 43,272 82,435 $ 164,822 $ 2,965,488 $ 1,119,749 $ 4,250,059 _______________________________ (1) The “Ashburn, Virginia Campus” includes both the existing data center Ashburn, VA (DC - 1) as well as new property development associated with the construction of a second data center Ashburn, VA (DC - 2). (2) The “Atlanta, Georgia Campus” includes both the existing data center Atlanta (DC - 1) as well as the recently developed data center Atlanta, GA (DC - 2). (3) Includes 7 facilities. All facilities are leased, including one subject to a finance lease. (4) The “Manassas, Virginia Campus” includes new property development associated with the construction of a wholly owned data center in Manassas, Virginia as well as separate land purchases in Manassas, Virginia. (5) Represents land purchases. Land acquisition costs, as well as subsequent development costs, are included within construction in progress until development on the land has ended and the asset is ready for its intended use. (6) Owned facility subject to long-term ground sublease. (7) Consists of Miami, FL; Lenexa, KS; Overland Park, KS and additional land. As of December 31, 2020: Property Location Land Buildings, Improvements and Equipment Construction in Progress Total Cost Ashburn, Virginia Campus (1) $ 16,476 $ 371,725 $ 185,903 $ 574,104 Atlanta, Georgia Campus (2) 55,157 700,142 191,072 946,371 Chicago, Illinois 9,400 250,336 104,117 363,853 Dulles, Virginia 3,154 54,323 4,148 61,625 Eemshaven, Netherlands 5,366 21,712 47,531 74,609 Fort Worth, Texas 9,079 124,054 1,064 134,197 Groningen, Netherlands 1,896 11,206 3,730 16,832 Hillsboro, Oregon 18,414 34,594 78,390 131,398 Irving, Texas 8,606 392,275 99,591 500,472 Leased Facilities (3) — 82,759 225 82,984 Manassas, Virginia Campus (4) — 25 67,073 67,098 Phoenix, Arizona (5) — — 37,729 37,729 Piscataway, New Jersey 7,466 122,176 30,401 160,043 Princeton, New Jersey 20,700 35,261 5 55,966 Richmond, Virginia 2,180 233,927 120,577 356,684 Sacramento, California 1,481 66,300 12 67,793 Santa Clara, California (6) — 117,343 9,385 126,728 Suwanee, Georgia (Atlanta-Suwanee) 3,521 184,467 6,718 194,706 Other (7) 2,213 36,636 41,094 79,943 $ 165,109 $ 2,839,261 $ 1,028,765 $ 4,033,135 _______________________________ (1) The “Ashburn, Virginia Campus” includes both the existing data center Ashburn, VA (DC - 1) as well as new property development associated with the construction of a second data center Ashburn, VA (DC - 2). (2) The “Atlanta, Georgia Campus” includes both the existing data center Atlanta (DC - 1) as well as the recently developed data center Atlanta, GA (DC - 2). (3) Includes 7 facilities. All facilities are leased, including one subject to a finance lease. (4) The “Manassas, Virginia Campus” includes new property development associated with the construction of a wholly owned data center in Manassas, Virginia as well as separate land purchases in Manassas, Virginia. (5) Represents land purchases. Land acquisition costs, as well as subsequent development costs, are included within construction in progress until development on the land has ended and the asset is ready for its intended use. (6) Owned facility subject to long-term ground sublease. (7) Consists of Miami, FL; Lenexa, KS; Overland Park, KS and additional land. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of components of lease expenses | Three months ended March 31, 2021 2020 Finance lease cost: Amortization of assets $ 1,013 $ 1,038 Interest on lease liabilities 469 489 Operating lease expense: Operating lease cost 2,232 2,263 Variable lease cost 270 264 Sublease income (49) (48) Total lease costs $ 3,935 $ 4,006 |
Schedule of components of lease revenue | The components of our lease revenue were as follows (unaudited and in thousands): Three months ended March 31, 2021 2020 Lease revenue: Minimum lease revenue $ 127,706 $ 107,485 Variable lease revenue (primarily recoveries from customers) 16,602 12,596 Total lease revenue $ 144,308 $ 120,081 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Outstanding Debt Including Capital Leases and Lease Financing Obligations | Below is a listing of our outstanding debt, including finance leases, as of March 31, 2021 and December 31, 2020 (in thousands): Weighted Average Effective Interest Rate at March 31, 2021 (1) Maturity Date March 31, December 31, (unaudited) (unaudited) Unsecured Credit Facility Revolving Credit Facility 1.36% December 17, 2023 $ 361,877 $ 392,337 Term Loan A 3.26% December 17, 2024 225,000 225,000 Term Loan B 3.30% April 27, 2025 225,000 225,000 Term Loan C 3.46% October 18, 2026 250,000 250,000 Term Loan D 1.45% January 15, 2026 250,000 250,000 3.875% Senior Notes 3.88% October 1, 2028 500,000 500,000 Finance Leases 4.35% 2031 - 2040 42,525 41,718 2.87% 1,854,402 1,884,055 Less net debt issuance costs (13,935) (14,562) Total outstanding debt, net $ 1,840,467 $ 1,869,493 _________________________ (1) The coupon interest rates associated with Term Loan A, Term Loan B, and Term Loan C incorporate the effects of our interest rate swaps in effect as of March 31, 2021. |
Annual Remaining Principal Payment | The annual remaining principal payment requirements of our debt securities as of March 31, 2021 per the contractual maturities, excluding extension options and excluding operating and finance leases, are as follows (unaudited and in thousands): 2021 (April - December) $ — 2022 — 2023 361,877 2024 225,000 2025 225,000 Thereafter 1,000,000 Total $ 1,811,877 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of interest rate derivatives and their fair values | Interest rate derivatives and their fair values as of March 31, 2021 and December 31, 2020 were as follows (unaudited and in thousands): Notional Amount Fixed One Month LIBOR rate per annum Fair Value March 31, 2021 December 31, 2020 Effective Date Expiration Date March 31, 2021 December 31, 2020 $ 25,000 $ 25,000 1.989 % January 2, 2018 December 17, 2021 $ (334) $ (447) 100,000 100,000 1.989 % January 2, 2018 December 17, 2021 (1,333) (1,788) 75,000 75,000 1.989 % January 2, 2018 December 17, 2021 (1,001) (1,342) 50,000 50,000 2.033 % January 2, 2018 April 27, 2022 (1,017) (1,248) 100,000 100,000 2.029 % January 2, 2018 April 27, 2022 (2,027) (2,490) 50,000 50,000 2.033 % January 2, 2018 April 27, 2022 (1,016) (1,248) 100,000 100,000 2.617 % January 2, 2020 December 17, 2023 (6,144) (7,191) 100,000 100,000 2.621 % January 2, 2020 April 27, 2024 (6,722) (8,000) 70,000 70,000 0.968 % March 2, 2020 October 18, 2026 232 (2,174) 30,000 30,000 0.973 % March 2, 2020 October 18, 2026 100 (938) 200,000 200,000 2.636 % December 17, 2021 December 17, 2023 (8,781) (9,648) 200,000 200,000 2.642 % April 27, 2022 April 27, 2024 (8,162) (9,500) 125,000 125,000 1.014 % December 17, 2023 December 17, 2024 336 (704) 100,000 100,000 1.035 % December 17, 2023 December 17, 2024 244 (584) 75,000 75,000 1.110 % December 17, 2023 October 18, 2026 1,230 (866) 100,000 100,000 1.088 % April 27, 2024 April 27, 2025 399 (540) 125,000 125,000 1.082 % April 27, 2024 April 27, 2025 513 (666) 75,000 75,000 0.977 % April 27, 2024 October 18, 2026 1,503 (422) $ (31,980) $ (49,796) |
Schedule of power purchase agreement derivatives | Power purchase agreement derivatives and their fair values as of March 31, 2021 and December 31, 2020 were as follows (unaudited and in thousands): Fair Value Counterparty Facility Effective Date Expiration Date March 31, 2021 December 31, 2020 Calpine Energy Solutions, LLC Piscataway March 8, 2019 February 28, 2029 $ (2,534) $ (2,162) Calpine Energy Solutions, LLC Chicago March 8, 2019 February 28, 2029 (2,237) (1,764) $ (4,771) $ (3,926) |
Partners' Capital, Equity and_2
Partners' Capital, Equity and Incentive Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Summary of Award Activity Under 2010 Equity Incentive Plan and 2013 Equity Incentive Plan and Related Information | The following is a summary of award activity under the 2010 Equity Incentive Plan and 2013 Equity Incentive Plan and related information for the three months ended March 31, 2021 (unaudited) : 2010 Equity Incentive Plan 2013 Equity Incentive Plan Numbers of Class O units Weighted average exercise price Weighted average fair value Options Weighted average exercise price Weighted average fair value Restricted Stock / Deferred Stock Weighted average fair value at grant date TSR Units Weighted average fair value at grant date FFO Units Weighted average fair value at grant date Outstanding at December 31, 2020 75,435 $ 25.00 $ 6.11 1,936,407 $ 38.55 $ 7.26 416,496 $ 52.20 168,552 $ 66.90 132,267 $ 51.45 Granted — — — 96,366 59.06 10.53 270,464 59.07 105,402 64.72 105,402 59.06 Exercised/Vested (1) — — — (51,220) 38.63 7.91 (123,438) 54.57 — — — — Cancelled/Expired — — — — — — (3,716) 57.24 — — — — Outstanding at March 31, 2021 75,435 $ 25.00 $ 6.11 1,981,553 $ 39.55 $ 7.40 559,806 $ 54.96 273,954 $ 66.06 237,669 $ 54.82 ____________________ (1) Represents (i) Class O units which were converted to Class A units, (ii) options to purchase Class A common stock which were exercised, and (iii) the Class A common stock that has been released from restriction and which was not surrendered by the holder to satisfy their statutory minimum federal and state tax obligations associated with the vesting of restricted common stock, with respect to the applicable column. |
Summary of Assumptions and Fair Values for Restricted Stock and Options to Purchase Shares of Class A Common Stock Granted | The assumptions and fair values for restricted stock and options to purchase shares of Class A common stock granted for the three months ended March 31, 2021 are included in the following table on a per unit basis (unaudited). Options to purchase shares of Class A common stock were valued using the Black-Scholes model and TSR Units were valued using a Monte-Carlo simulation that leveraged similar assumptions to those used to value the Class A common stock and FFO Units. Three Months Ended March 31, 2021 Fair value of FFO units and restricted stock granted $ 59.06 - $ 61.17 Fair value of TSR units granted $ 64.72 Fair value of options granted $ 3.79 - $ 11.36 Expected term (years) 0.4 - 5.5 Expected volatility 28 % - 31 % Expected dividend yield 3.39 % Expected risk-free interest rates 0.06 % - 0.90 % |
Summary of Information About Awards Outstanding | The following tables summarize information about awards outstanding as of March 31, 2021 (unaudited). Operating Partnership Awards Outstanding Exercise prices Awards outstanding Weight average remaining vesting period Class O Units $ 25.00 75,435 — Total Operating Partnership awards outstanding 75,435 QTS Realty Trust, Inc. Awards Outstanding Exercise prices Awards outstanding Weight average remaining vesting period Restricted stock $ — 559,806 1.1 TSR units — 273,954 1.1 FFO units — 237,669 0.8 Options to purchase Class A common stock $ 21.00 - $ 59.06 1,981,553 0.9 Total QTS Realty Trust, Inc. awards outstanding 3,052,982 |
Schedule of Quarterly Cash Dividends | The following tables present quarterly cash dividends and distributions paid to our common and preferred stockholders for the three months ended March 31, 2021 and 2020 (unaudited): Three Months Ended March 31, 2021 Record Date Payment Date Per Share Rate Aggregate Dividend/Distribution Amount (in millions) Common Stock December 22, 2020 January 7, 2021 $ 0.47 $ 33.4 $ 33.4 Series A Preferred Stock December 31, 2020 January 15, 2021 $ 0.45 $ 1.9 $ 1.9 Series B Preferred Stock December 31, 2020 January 15, 2021 $ 1.63 $ 5.1 $ 5.1 Three Months Ended March 31, 2020 Record Date Payment Date Per Share Rate Aggregate Dividend/Distribution Amount (in millions) Common Stock December 20, 2019 January 7, 2020 $ 0.44 $ 28.6 $ 28.6 Series A Preferred Stock December 31, 2019 January 15, 2020 $ 0.45 $ 1.9 $ 1.9 Series B Preferred Stock December 31, 2019 January 15, 2020 $ 1.63 $ 5.1 $ 5.1 |
Summary of Equity Issued | The following table represents a summary of our aggregate forward equity activity under the Prior ATM Program, Current ATM Program and our underwritten offerings from December 31, 2020 through March 31, 2021: Offering Program Forward Net Proceeds Available/(Received) (1) Shares and net proceeds available as of December 31, 2020 9,961 $ 581,598 (2) Forward Equity - Sales 1,504 91,620 Forward Equity - Settlements (3,865) (3) (215,964) Shares and net proceeds available as of March 31, 2021 7,600 $ 457,254 ____________________ (1) Net Proceeds Available remain subject to certain adjustments until settled. (2) Proceeds available reported in the Form 10-K for the period ended December 31, 2020 were $587.6 million. The $6 million decrease is primarily due to QTS’ declared dividends, which reduces cash expected to be received upon full physical settlement of the forward shares. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Summary of Related Party Transactions | The transactions which occurred during the three months ended March 31, 2021 and 2020 are outlined below (unaudited and in thousands): Three Months Ended 2021 2020 Tax, utility, insurance and other reimbursement $ 169 $ 176 Rent expense 260 257 Total $ 429 $ 433 |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Earnings Per Share | The computation of basic and diluted net income (loss) per share is as follows (in thousands, except per share data, and unaudited): Three Months Ended March 31, 2021 2020 Numerator: Net income $ 7,918 $ 8,120 Income attributable to noncontrolling interests (79) (110) Preferred stock dividends (7,045) (7,045) Earnings attributable to participating securities (5,285) (1,596) Net loss available to common stockholders after allocation to participating securities $ (4,491) $ (631) Denominator: Weighted average shares outstanding - basic 64,442 58,038 Effect of Class O units, TSR units, FFO units and options to purchase Class A common stock on an "as if" converted basis — — Weighted average shares outstanding - diluted 64,442 58,038 Basic net loss per share * $ (0.07) $ (0.01) Diluted net loss per share * $ (0.07) $ (0.01) ______________________________ * Note: The calculations of basic and diluted net income (loss) per share above do not include the following number of Class A partnership units, Class O units, TSR units, FFO units and options to purchase common stock on an “as if” converted basis, and the effects of Series B Convertible preferred stock on an “as if” converted basis, as their respective inclusions would have been antidilutive: Three Months Ended March 31, 2021 2020 Class A Partnership units 6,466 6,671 Class O units, TSR units, FFO units and options to purchase common stock on an "as if" converted basis 1,212 655 Series B Convertible preferred stock on an "as if" converted basis 6,779 6,749 |
Contracts with Customers (Table
Contracts with Customers (Table) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Future minimum payments to be received under non-cancelable customer contracts | Future minimum payments to be received under non-cancelable customer contracts including both lease rental revenue components and non-lease revenue components that are accounted for as a combined lease component in accordance with the practical expedient provided by ASC Topic 842 which is discussed in Note 2 above (inclusive of payments for contracts which have not yet commenced, and exclusive of variable lease revenue such as recoveries of operating costs from customers) are as follows for the years ending December 31 (unaudited and in thousands): 2021 (April - December) $ 349,511 2022 394,619 2023 296,826 2024 240,951 2025 186,194 Thereafter 554,414 Total $ 2,022,515 |
Description of Business (Detail
Description of Business (Details) | 3 Months Ended |
Mar. 31, 2021property | |
Organization And Description Of Business [Line Items] | |
Number of properties | 28 |
QualityTech LP | |
Organization And Description Of Business [Line Items] | |
Ownership interest | 91.40% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Basis of Presentation to Real Estate Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Maximum exposure to losses | $ 25.9 | |
Depreciation expense from operation | 45.6 | $ 35.7 |
Real estate cost capitalized excluding interest cost | 5.5 | 4.5 |
Real estate interest cost capitalized incurred | $ (7) | (8.1) |
Real Property | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Useful life of property | 40 years | |
Real Property | Minimum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Useful life of property | 20 years | |
Real Property | Maximum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Useful life of property | 40 years | |
Leasehold Improvements | Maximum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Useful life of property | 20 years | |
Real Estate Assets | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Depreciation expense from operation | $ 42.7 | 32.3 |
Non-Real Estate Assets | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Depreciation expense from operation | $ 2.9 | $ 3.4 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Impairment to Equity-based Compensation (Details) | 3 Months Ended | |
Mar. 31, 2021USD ($)item | Mar. 31, 2020USD ($) | |
Accounting Policies [Abstract] | ||
Impairment losses | $ | $ 0 | $ 0 |
Number of reporting units | item | 1 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Revenue and Deferred Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Deferred rent receivables | $ 71,000 | $ 63,600 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Aggregate allowance for doubtful accounts | 5,300 | $ 5,400 | |
Deferred income | 93,495 | 85,400 | $ 85,351 |
Amortization of deferred revenue | 6,400 | 3,900 | |
Company recorded equity-based compensation expense net of repurchased awards and forfeits | $ 6,900 | $ 4,900 | |
Cloud and managed services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining term | 3 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Segment Information to Taxes and Accounting Pronouncements (Details) | 3 Months Ended | |
Mar. 31, 2021segmentcustomer | Mar. 31, 2020 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Number of operating segments | segment | 1 | |
Number of reportable segments | segment | 1 | |
Taxable REIT Subsidiaries | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Effective tax rate | (7.80%) | 13.00% |
Customer One | Rental Revenue | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Concentration risk percentage | 11.00% | |
Number of customers | customer | 1 | |
Customer One | Accounts Receivable | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Concentration risk percentage | 40.00% | |
Number of customers | customer | 1 | |
Three Customers | Accounts Receivable | Trade Accounts Receivable | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Concentration risk percentage | 53.00% | |
Three Customers | Accounts Receivable | Minimum | Trade Accounts Receivable | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Concentration risk percentage | 5.00% |
Real Estate Assets and Constr_3
Real Estate Assets and Construction in Progress (Details) $ in Thousands | Mar. 31, 2021USD ($)facility | Dec. 31, 2020USD ($)facility |
Real Estate Properties [Line Items] | ||
Land | $ 164,822 | $ 165,109 |
Buildings, Improvements and Equipment | 2,965,488 | 2,839,261 |
Construction in progress | 1,119,749 | 1,028,765 |
Owned Properties | ||
Real Estate Properties [Line Items] | ||
Land | 164,822 | 165,109 |
Buildings, Improvements and Equipment | 2,965,488 | 2,839,261 |
Construction in progress | 1,119,749 | 1,028,765 |
Total cost | 4,250,059 | 4,033,135 |
Owned Properties | Ashburn, Virginia Campus | ||
Real Estate Properties [Line Items] | ||
Land | 16,476 | 16,476 |
Buildings, Improvements and Equipment | 391,247 | 371,725 |
Construction in progress | 219,065 | 185,903 |
Total cost | 626,788 | 574,104 |
Owned Properties | Atlanta, Georgia Campus | ||
Real Estate Properties [Line Items] | ||
Land | 55,158 | 55,157 |
Buildings, Improvements and Equipment | 771,045 | 700,142 |
Construction in progress | 183,319 | 191,072 |
Total cost | 1,009,522 | 946,371 |
Owned Properties | Chicago, Illinois | ||
Real Estate Properties [Line Items] | ||
Land | 9,400 | 9,400 |
Buildings, Improvements and Equipment | 251,676 | 250,336 |
Construction in progress | 131,322 | 104,117 |
Total cost | 392,398 | 363,853 |
Owned Properties | Dulles, Virginia | ||
Real Estate Properties [Line Items] | ||
Land | 3,154 | 3,154 |
Buildings, Improvements and Equipment | 55,580 | 54,323 |
Construction in progress | 4,220 | 4,148 |
Total cost | 62,954 | 61,625 |
Owned Properties | Eemshaven, Netherlands | ||
Real Estate Properties [Line Items] | ||
Land | 5,153 | 5,366 |
Buildings, Improvements and Equipment | 20,991 | 21,712 |
Construction in progress | 47,859 | 47,531 |
Total cost | 74,003 | 74,609 |
Owned Properties | Fort Worth, Texas | ||
Real Estate Properties [Line Items] | ||
Land | 9,079 | 9,079 |
Buildings, Improvements and Equipment | 124,481 | 124,054 |
Construction in progress | 3,350 | 1,064 |
Total cost | 136,910 | 134,197 |
Owned Properties | Groningen, Netherlands | ||
Real Estate Properties [Line Items] | ||
Land | 1,821 | 1,896 |
Buildings, Improvements and Equipment | 11,324 | 11,206 |
Construction in progress | 3,249 | 3,730 |
Total cost | 16,394 | 16,832 |
Owned Properties | Hillsboro, Oregon | ||
Real Estate Properties [Line Items] | ||
Land | 18,414 | 18,414 |
Buildings, Improvements and Equipment | 47,364 | 34,594 |
Construction in progress | 72,033 | 78,390 |
Total cost | 137,811 | 131,398 |
Owned Properties | Irving, Texas | ||
Real Estate Properties [Line Items] | ||
Land | 8,606 | 8,606 |
Buildings, Improvements and Equipment | 409,565 | 392,275 |
Construction in progress | 89,516 | 99,591 |
Total cost | 507,687 | 500,472 |
Owned Properties | Manassas, Virginia | ||
Real Estate Properties [Line Items] | ||
Land | 0 | 0 |
Buildings, Improvements and Equipment | 37 | 25 |
Construction in progress | 90,947 | 67,073 |
Total cost | 90,984 | 67,098 |
Owned Properties | Phoenix, Arizona | ||
Real Estate Properties [Line Items] | ||
Land | 0 | 0 |
Buildings, Improvements and Equipment | 0 | 0 |
Construction in progress | 38,063 | 37,729 |
Total cost | 38,063 | 37,729 |
Owned Properties | Piscataway, New Jersey | ||
Real Estate Properties [Line Items] | ||
Land | 7,466 | 7,466 |
Buildings, Improvements and Equipment | 122,599 | 122,176 |
Construction in progress | 39,951 | 30,401 |
Total cost | 170,016 | 160,043 |
Owned Properties | Princeton, New Jersey | ||
Real Estate Properties [Line Items] | ||
Land | 20,700 | 20,700 |
Buildings, Improvements and Equipment | 35,267 | 35,261 |
Construction in progress | 9 | 5 |
Total cost | 55,976 | 55,966 |
Owned Properties | Richmond, Virginia | ||
Real Estate Properties [Line Items] | ||
Land | 2,180 | 2,180 |
Buildings, Improvements and Equipment | 235,381 | 233,927 |
Construction in progress | 128,911 | 120,577 |
Total cost | 366,472 | 356,684 |
Owned Properties | Sacramento, California | ||
Real Estate Properties [Line Items] | ||
Land | 1,481 | 1,481 |
Buildings, Improvements and Equipment | 66,304 | 66,300 |
Construction in progress | 125 | 12 |
Total cost | 67,910 | 67,793 |
Owned Properties | Santa Clara, California | ||
Real Estate Properties [Line Items] | ||
Land | 0 | 0 |
Buildings, Improvements and Equipment | 117,522 | 117,343 |
Construction in progress | 16,871 | 9,385 |
Total cost | 134,393 | 126,728 |
Owned Properties | Suwanee, Georgia (Atlanta-Suwanee) | ||
Real Estate Properties [Line Items] | ||
Land | 3,521 | 3,521 |
Buildings, Improvements and Equipment | 184,975 | 184,467 |
Construction in progress | 7,607 | 6,718 |
Total cost | 196,103 | 194,706 |
Owned Properties | Other | ||
Real Estate Properties [Line Items] | ||
Land | 2,213 | 2,213 |
Buildings, Improvements and Equipment | 36,950 | 36,636 |
Construction in progress | 43,272 | 41,094 |
Total cost | 82,435 | 79,943 |
Leased Properties | ||
Real Estate Properties [Line Items] | ||
Land | 0 | 0 |
Buildings, Improvements and Equipment | 83,180 | 82,759 |
Construction in progress | 60 | 225 |
Total cost | $ 83,240 | $ 82,984 |
Number of facilities leased | facility | 7 | 7 |
Leased Properties | Finance Leases | ||
Real Estate Properties [Line Items] | ||
Number of facilities leased | facility | 1 | 1 |
Leases - Finance leases (Detail
Leases - Finance leases (Details) | 3 Months Ended |
Mar. 31, 2021item | |
Lease as Lessee | |
Number of finance leases | 1 |
Minimum | |
Lease as Lessee | |
Remaining lease term | 10 years |
Maximum | |
Lease as Lessee | |
Remaining lease term | 20 years |
Leases - Operating leases (Deta
Leases - Operating leases (Details) | 3 Months Ended |
Mar. 31, 2021item | |
Lease as Lessee | |
Number of operating leases | 6 |
Number of ground leases under operating leases | 1 |
Minimum | |
Lease as Lessee | |
Remaining lease term | 3 years |
Maximum | |
Lease as Lessee | |
Remaining lease term | 6 years |
Leases - Components of lease ex
Leases - Components of lease expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Finance lease cost: | ||
Amortization of assets | $ 1,013 | $ 1,038 |
Interest on lease liabilities | 469 | 489 |
Operating lease expense: | ||
Operating lease cost | 2,232 | 2,263 |
Variable lease cost | 270 | 264 |
Sublease income | (49) | (48) |
Total lease costs | $ 3,935 | $ 4,006 |
Leases - Leases as lessor (Deta
Leases - Leases as lessor (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Lease revenue: | ||
Minimum lease revenue | $ 127,706 | $ 107,485 |
Variable lease revenue (primarily recoveries from customers) | 16,602 | 12,596 |
Total lease revenue | $ 144,308 | $ 120,081 |
Investments in Unconsolidated_2
Investments in Unconsolidated Entity (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2019 |
Investments in Unconsolidated Joint Ventures | |||
Assets | $ 4,085,290 | $ 3,898,572 | |
Liabilities | 2,295,610 | 2,313,874 | |
Joint venture with Alinda | |||
Investments in Unconsolidated Joint Ventures | |||
Equity method investments | $ 25,900 | 22,600 | |
Ownership interest (as a percent) | 50.00% | ||
Joint venture with Alinda | |||
Investments in Unconsolidated Joint Ventures | |||
Lease term of facility with global cloud-based software company | 10 years | ||
Assets | $ 145,800 | 141,500 | |
Liabilities | $ 92,200 | $ 90,100 |
Debt - Outstanding Debt Includi
Debt - Outstanding Debt Including Finance Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Weighted average effective interest rate (as a percent) | 2.87% | |
Outstanding debt | $ 1,854,402 | $ 1,884,055 |
Less net debt issuance costs | (13,935) | (14,562) |
Total outstanding debt, net | $ 1,840,467 | 1,869,493 |
Unsecured Credit Facility, Revolving Credit Facility, Matures on December 17, 2023 | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rate (as a percent) | 1.36% | |
Outstanding debt | $ 361,877 | 392,337 |
Unsecured Credit Facility, Term Loan A, Matures on December 17, 2024 | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rate (as a percent) | 3.26% | |
Outstanding debt | $ 225,000 | 225,000 |
Unsecured Credit Facility, Term Loan B, Matures on April 27 2025 | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rate (as a percent) | 3.30% | |
Outstanding debt | $ 225,000 | 225,000 |
Unsecured Credit Facility, Term Loan C, Matures on October 18 2026 | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rate (as a percent) | 3.46% | |
Outstanding debt | $ 250,000 | 250,000 |
Term Loan D | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rate (as a percent) | 1.45% | |
Outstanding debt | $ 250,000 | 250,000 |
3.875% Senior Notes | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rate (as a percent) | 3.88% | |
Outstanding debt | $ 500,000 | 500,000 |
Finance Leases | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rate (as a percent) | 4.35% | |
Total debt and lease obligations | $ 42,525 | $ 41,718 |
Debt - Annual Remaining Princip
Debt - Annual Remaining Principal Payment (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2021 (April - December) | $ 0 |
2022 | 0 |
2023 | 361,877 |
2024 | 225,000 |
2025 | 225,000 |
Thereafter | 1,000,000 |
Total | $ 1,811,877 |
Derivative Instruments - Intere
Derivative Instruments - Interest rate swaps (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2022 | Dec. 31, 2020 | |
Derivative [Line Items] | ||||
Reclassification of other comprehensive income to interest expense | $ 3,400 | $ 800 | ||
Forecast | ||||
Derivative [Line Items] | ||||
Reclassification of other comprehensive income to interest expense | $ 13,700 | |||
Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Derivative instruments, notional amount | 700,000 | |||
Interest Rate Swap | Cash flow hedging | ||||
Derivative [Line Items] | ||||
Fair value | (31,980) | $ (49,796) | ||
Interest Rate Swap | Unsecured Credit Facility, Term Loan | ||||
Derivative [Line Items] | ||||
Aggregate principal amount | 700,000 | |||
Interest Rate Swap | Unsecured Credit Facility, Term Loan A, Matures on December 17, 2024 | ||||
Derivative [Line Items] | ||||
Aggregate principal amount | 225,000 | |||
Interest Rate Swap | Unsecured Credit Facility, Term Loan B, Matures on April 27 2025 | ||||
Derivative [Line Items] | ||||
Aggregate principal amount | 225,000 | |||
Interest Rate Swap | Unsecured Credit Facility, Term Loan C, Matures on October 18 2026 | ||||
Derivative [Line Items] | ||||
Aggregate principal amount | $ 250,000 |
Derivative Instruments - Inte_2
Derivative Instruments - Interest rate derivatives and their fair values (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Interest Rate Swap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | $ 700,000,000 | |
Interest Rate Swap | Cash flow hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair value | (31,980,000) | $ (49,796,000) |
Swap instrument one matures on December 17, 2021 | Cash flow hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | $ 25,000,000 | 25,000,000 |
Fixed rate per annum | 1.989% | |
Fair value | $ (334,000) | (447,000) |
Swap instrument two matures on December 17, 2021 | Cash flow hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | $ 100,000,000 | 100,000,000 |
Fixed rate per annum | 1.989% | |
Fair value | $ (1,333,000) | (1,788,000) |
Swap instrument three matures on December 17, 2021 | Cash flow hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | $ 75,000,000 | 75,000,000 |
Fixed rate per annum | 1.989% | |
Fair value | $ (1,001,000) | (1,342,000) |
Swap instrument one matures on April 27, 2022 | Cash flow hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | $ 50,000,000 | 50,000,000 |
Fixed rate per annum | 2.033% | |
Fair value | $ (1,017,000) | (1,248,000) |
Swap instrument two matures on April 27, 2022 | Cash flow hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | $ 100,000,000 | 100,000,000 |
Fixed rate per annum | 2.029% | |
Fair value | $ (2,027,000) | (2,490,000) |
Swap instrument three matures on April 27, 2022 | Cash flow hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | $ 50,000,000 | 50,000,000 |
Fixed rate per annum | 2.033% | |
Fair value | $ (1,016,000) | (1,248,000) |
Swap instrument one matures on December 17, 2023 | Cash flow hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | $ 100,000,000 | 100,000,000 |
Fixed rate per annum | 2.617% | |
Fair value | $ (6,144,000) | (7,191,000) |
Swap instrument one matures on April 27, 2024 | Cash flow hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | $ 100,000,000 | 100,000,000 |
Fixed rate per annum | 2.621% | |
Fair value | $ (6,722,000) | (8,000,000) |
Swap instrument one matures on October 18, 2026 | Cash flow hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | $ 70,000,000 | 70,000,000 |
Fixed rate per annum | 0.968% | |
Fair value | $ 232,000 | (2,174,000) |
Swap instrument two matures on October 18, 2026 | Cash flow hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | $ 30,000,000 | 30,000,000 |
Fixed rate per annum | 0.973% | |
Fair value | $ 100,000 | (938,000) |
Swap instrument two matures on December 17, 2023 | Cash flow hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | $ 200,000,000 | 200,000,000 |
Fixed rate per annum | 2.636% | |
Fair value | $ (8,781,000) | (9,648,000) |
Swap instrument two matures on April 27, 2024 | Cash flow hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | $ 200,000,000 | 200,000,000 |
Fixed rate per annum | 2.642% | |
Fair value | $ (8,162,000) | (9,500,000) |
Swap instrument one matures on December 17, 2024 | Cash flow hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | $ 125,000,000 | 125,000,000 |
Fixed rate per annum | 1.014% | |
Fair value | $ 336,000 | (704,000) |
Swap instrument two matures on December 17, 2024 | Cash flow hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | $ 100,000,000 | 100,000,000 |
Fixed rate per annum | 1.035% | |
Fair value | $ 244,000 | (584,000) |
Swap instrument three matures on October 18, 2026 | Cash flow hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | $ 75,000,000 | 75,000,000 |
Fixed rate per annum | 1.11% | |
Fair value | $ 1,230,000 | (866,000) |
Swap instrument one matures on April 27, 2025 | Cash flow hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | $ 100,000,000 | 100,000,000 |
Fixed rate per annum | 1.088% | |
Fair value | $ 399,000 | (540,000) |
Swap instrument two matures on April 27, 2025 | Cash flow hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | $ 125,000,000 | 125,000,000 |
Fixed rate per annum | 1.082% | |
Fair value | $ 513,000 | (666,000) |
Swap instrument four matures on October 18, 2026 | Cash flow hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | $ 75,000,000 | 75,000,000 |
Fixed rate per annum | 0.977% | |
Fair value | $ 1,503,000 | $ (422,000) |
Derivative Instruments - Power
Derivative Instruments - Power Purchase Agreements (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2019agreement | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Derivative [Line Items] | ||||
Increase (decrease) in utilities expense | $ (100) | $ 400 | ||
Power Purchase Agreements | ||||
Derivative [Line Items] | ||||
Number of agreements | agreement | 2 | |||
Term of agreement | 10 years | |||
Cash flow hedging | Power Purchase Agreements | ||||
Derivative [Line Items] | ||||
Fair value | (4,771) | $ (3,926) | ||
Cash flow hedging | Piscataway | Calpine Energy Solutions, LLC | ||||
Derivative [Line Items] | ||||
Fair value | (2,534) | (2,162) | ||
Cash flow hedging | Chicago | Calpine Energy Solutions, LLC | ||||
Derivative [Line Items] | ||||
Fair value | $ (2,237) | $ (1,764) |
Partners' Capital, Equity and_3
Partners' Capital, Equity and Incentive Compensation Plans - Additional Information (Details) $ in Millions | Mar. 04, 2021shares | Oct. 13, 2013Vote | Mar. 31, 2019 | Mar. 31, 2021USD ($)classshares | Dec. 31, 2020shares |
Partners Capital And Distributions [Line Items] | |||||
Options outstanding (in shares) | 100,000 | ||||
Equity based compensation expense unrecognized | $ | $ 51.4 | ||||
Equity based compensation expense vesting period | 1 year | ||||
Class O Units and Options | |||||
Partners Capital And Distributions [Line Items] | |||||
Equity based compensation awards intrinsic value | $ | $ 47.5 | ||||
First portion | Performance-Based FFO Units | |||||
Partners Capital And Distributions [Line Items] | |||||
Vesting period | 2 years | ||||
Second portion | Performance-Based FFO Units | |||||
Partners Capital And Distributions [Line Items] | |||||
Vesting period | 3 years | ||||
Second portion | Restricted Class A Common Stock | |||||
Partners Capital And Distributions [Line Items] | |||||
Vesting percentage, per quarter | 8.375% | ||||
Vesting percentage | 33.00% | ||||
2013 Equity Incentive Plan | Performance-Based FFO Units | |||||
Partners Capital And Distributions [Line Items] | |||||
Options outstanding (in shares) | 237,669 | 132,267 | |||
2013 Equity Incentive Plan | Performance-Based Relative TSR Units | |||||
Partners Capital And Distributions [Line Items] | |||||
Options outstanding (in shares) | 273,954 | 168,552 | |||
QualityTech, LP | |||||
Partners Capital And Distributions [Line Items] | |||||
Number of classes of partnership units outstanding | class | 4 | ||||
Class B Common Stock | |||||
Partners Capital And Distributions [Line Items] | |||||
Number of votes per share | Vote | 50 | ||||
Class B Common Stock | Chief Executive Officer | |||||
Partners Capital And Distributions [Line Items] | |||||
Percentage of operating partnership unit exchanged | 2.00% | ||||
Class A Common Stock | Performance-Based FFO Units | Minimum | |||||
Partners Capital And Distributions [Line Items] | |||||
Percentage of target award | 0.00% | ||||
Class A Common Stock | Performance-Based FFO Units | Maximum | |||||
Partners Capital And Distributions [Line Items] | |||||
Percentage of target award | 200.00% | ||||
Class A Common Stock | Performance-Based Relative TSR Units | |||||
Partners Capital And Distributions [Line Items] | |||||
Performance period | 3 years | ||||
Class A Common Stock | Performance-Based Relative TSR Units | Minimum | |||||
Partners Capital And Distributions [Line Items] | |||||
Percentage of target award | 0.00% | ||||
Class A Common Stock | Performance-Based Relative TSR Units | Maximum | |||||
Partners Capital And Distributions [Line Items] | |||||
Percentage of target award | 200.00% | ||||
Class A Common Stock | 2013 Equity Incentive Plan | |||||
Partners Capital And Distributions [Line Items] | |||||
Authorized shares to be issued under the plan | 5,900,000 | ||||
Additional shares available for issuance under plan approved by stockholders | 2,000,000 | ||||
Preferred Units Series A [Member] | QualityTech, LP | |||||
Partners Capital And Distributions [Line Items] | |||||
Exchange rate for cash or shares | 1 |
Partners' Capital, Equity and_4
Partners' Capital, Equity and Incentive Compensation Plans - Summary of Award Activity Under 2010 Equity Incentive Plan and 2013 Equity Incentive Plan and Related Information (Details) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Options | |
Ending balance (in shares) | shares | 100,000 |
2010 Equity Incentive Plan | Class O Units | |
Numbers of Class O units | |
Granted (in shares) | shares | 0 |
Cancelled/Expired (in shares) | shares | 0 |
Weighted average exercise price | |
Granted (in dollars per share) | $ 0 |
Cancelled/Expired (in dollars per share) | 0 |
Weighted average fair value | |
Granted (in dollars per share) | 0 |
Cancelled/Expired (in dollars per share) | $ 0 |
2010 Equity Incentive Plan | Class O Units | |
Numbers of Class O units | |
Beginning balance (in shares) | shares | 75,435 |
Exercised/Vested (in shares) | shares | 0 |
Ending balance (in shares) | shares | 75,435 |
Weighted average exercise price | |
Beginning balance (in dollars per share) | $ 25 |
Exercised/Vested (in dollars per share) | 0 |
Ending balance (in dollars per share) | 25 |
Weighted average fair value | |
Beginning balance (in dollars per share) | 6.11 |
Exercised/Vested (in dollars per share) | 0 |
Ending balance (in dollars per share) | $ 6.11 |
2013 Equity Incentive Plan | Options | |
Options | |
Beginning balance (in shares) | shares | 1,936,407 |
Granted (in shares) | shares | 96,366 |
Exercised/Vested (in shares) | shares | (51,220) |
Cancelled/Expired (in shares) | shares | 0 |
Ending balance (in shares) | shares | 1,981,553 |
Weighted average exercise price | |
Beginning balance (in dollars per share) | $ 38.55 |
Granted (in dollars per share) | 59.06 |
Exercised/Vested (in dollars per share) | 38.63 |
Cancelled/Expired (in dollars per share) | 0 |
Ending balance (in dollars per share) | 39.55 |
Weighted average fair value | |
Beginning balance (in dollars per share) | 7.26 |
Granted (in dollars per share) | 10.53 |
Exercised/Vested (in dollars per share) | 7.91 |
Cancelled/Expired (in dollars per share) | 0 |
Ending balance (in dollars per share) | $ 7.40 |
2013 Equity Incentive Plan | Restricted Stock | |
Options | |
Beginning balance (in shares) | shares | 416,496 |
Granted (in shares) | shares | 270,464 |
Exercised/Vested (in shares) | shares | (123,438) |
Cancelled/Expired (in shares) | shares | (3,716) |
Ending balance (in shares) | shares | 559,806 |
Weighted average fair value | |
Beginning balance (in dollars per share) | $ 52.20 |
Granted (in dollars per share) | 59.07 |
Exercised/Vested (in dollars per share) | 54.57 |
Cancelled/Expired (in dollars per share) | 57.24 |
Ending balance (in dollars per share) | $ 54.96 |
2013 Equity Incentive Plan | Performance-Based Relative TSR Units | |
Numbers of Class O units | |
Cancelled/Expired (in shares) | shares | 0 |
Weighted average exercise price | |
Exercised/Vested (in dollars per share) | $ 0 |
Options | |
Beginning balance (in shares) | shares | 168,552 |
Granted (in shares) | shares | 105,402 |
Ending balance (in shares) | shares | 273,954 |
Weighted average fair value | |
Beginning balance (in dollars per share) | $ 66.90 |
Granted (in dollars per share) | $ 64.72 |
Exercised/Vested (in dollars per share) | shares | 0 |
Cancelled/Expired (in dollars per share) | $ 0 |
Ending balance (in dollars per share) | $ 66.06 |
2013 Equity Incentive Plan | Performance-Based FFO Units | |
Numbers of Class O units | |
Cancelled/Expired (in shares) | shares | 0 |
Weighted average exercise price | |
Exercised/Vested (in dollars per share) | $ 0 |
Options | |
Beginning balance (in shares) | shares | 132,267 |
Granted (in shares) | shares | 105,402 |
Ending balance (in shares) | shares | 237,669 |
Weighted average fair value | |
Beginning balance (in dollars per share) | $ 51.45 |
Granted (in dollars per share) | $ 59.06 |
Exercised/Vested (in dollars per share) | shares | 0 |
Cancelled/Expired (in dollars per share) | $ 0 |
Ending balance (in dollars per share) | $ 54.82 |
Partners' Capital, Equity and_5
Partners' Capital, Equity and Incentive Compensation Plans - Summary of Assumptions and Fair Values for Restricted Stock and Options to Purchase Shares of Class A Common Stock Granted (Details) | 3 Months Ended |
Mar. 31, 2021$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value of TSR units granted (in dollars per share) | 64.72 |
Expected volatility, minimum | 28.00% |
Expected volatility, maximum | 31.00% |
Expected dividend yield | 3.39% |
Expected risk-free interest rates, minimum | 0.06% |
Expected risk-free interest rates, maximum | 0.90% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value of FFO units and restricted stock granted (in dollars per share) | 59.06 |
Fair value of options granted (in dollars per share) | $ 3.79 |
Expected term (years) | 4 months 24 days |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value of FFO units and restricted stock granted (in dollars per share) | 61.17 |
Fair value of options granted (in dollars per share) | $ 11.36 |
Expected term (years) | 5 years 6 months |
Partners' Capital, Equity and_6
Partners' Capital, Equity and Incentive Compensation Plans - Summary of Information About Awards Outstanding (Details) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
QualityTech LP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards outstanding | 75,435 |
QualityTech LP | Class O Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise prices (in dollars per share) | $ / shares | $ 25 |
Awards outstanding | 75,435 |
QTS Realty Trust, Inc. | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards outstanding | 3,052,982 |
QTS Realty Trust, Inc. | Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards outstanding | 559,806 |
Remaining term of awards | 1 year 1 month 6 days |
QTS Realty Trust, Inc. | Performance-Based Relative TSR Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards outstanding | 273,954 |
Remaining term of awards | 1 year 1 month 6 days |
QTS Realty Trust, Inc. | Performance-Based FFO Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards outstanding | 237,669 |
Remaining term of awards | 9 months 18 days |
QTS Realty Trust, Inc. | Options to purchase Class A common stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Lower limit of exercise price (in dollars per share) | $ / shares | $ 21 |
Upper limit of exercise price (in dollars per share) | $ / shares | $ 59.06 |
Awards outstanding | 1,981,553 |
Remaining term of awards | 10 months 24 days |
Partners' Capital, Equity and_7
Partners' Capital, Equity and Incentive Compensation Plans - Schedule of Quarterly Cash Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 15, 2021 | Apr. 06, 2021 | Jan. 15, 2021 | Jan. 07, 2021 | Jan. 15, 2020 | Jan. 07, 2020 | Mar. 31, 2021 | Mar. 31, 2020 |
Series A Preferred Stock | ||||||||
Per Share and Per Unit Rate (in dollars per share) | $ 0.45 | $ 0.45 | ||||||
Aggregate Dividend/Distribution Amount | $ 1.9 | $ 1.9 | $ 1.9 | $ 1.9 | ||||
Series A Preferred Stock | Subsequent Event | ||||||||
Per Share and Per Unit Rate (in dollars per share) | $ 0.45 | |||||||
Series B Preferred Stock | ||||||||
Per Share and Per Unit Rate (in dollars per share) | $ 1.63 | $ 1.63 | ||||||
Aggregate Dividend/Distribution Amount | $ 5.1 | $ 5.1 | 5.1 | 5.1 | ||||
Series B Preferred Stock | Subsequent Event | ||||||||
Per Share and Per Unit Rate (in dollars per share) | $ 1.63 | |||||||
Common stock | ||||||||
Per Share and Per Unit Rate (in dollars per share) | $ 0.47 | $ 0.44 | ||||||
Aggregate Dividend/Distribution Amount | $ 33.4 | $ 28.6 | $ 33.4 | $ 28.6 | ||||
Common stock | Subsequent Event | ||||||||
Per Share and Per Unit Rate (in dollars per share) | $ 0.50 |
Partners' Capital, Equity and_8
Partners' Capital, Equity and Incentive Compensation Plans - Equity Issuance (Details) - USD ($) | Mar. 15, 2023 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Jun. 30, 2020 | May 31, 2020 | Jun. 30, 2019 |
Partners Capital And Distributions [Line Items] | |||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||||
Common stock, shares authorized (in shares) | 450,133,000 | 450,133,000 | |||||
Forecast | |||||||
Partners Capital And Distributions [Line Items] | |||||||
Preferred stock, redemption price per share (in dollars per share) | $ 25 | ||||||
Underwritten Offering | Common stock | Maximum | |||||||
Partners Capital And Distributions [Line Items] | |||||||
Common stock, shares authorized (in shares) | 4,400,000 | ||||||
Class A Common Stock | Prior ATM Program | |||||||
Partners Capital And Distributions [Line Items] | |||||||
Common stock, maximum value authorized | $ 400,000,000 | ||||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||||
Class A Common Stock | ATM | |||||||
Partners Capital And Distributions [Line Items] | |||||||
Common stock, maximum value authorized | $ 500,000,000 | ||||||
Series A Redeemable Perpetual Preferred Stock | |||||||
Partners Capital And Distributions [Line Items] | |||||||
Preferred stock, shares outstanding (in shares) | 4,280,000 | 4,280,000 | |||||
Dividend rate (as a percent) | 7.125% | 7.125% | |||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | |||||
Series A Redeemable Perpetual Preferred Stock | Forecast | |||||||
Partners Capital And Distributions [Line Items] | |||||||
Threshold period of redemption of preferred stock | 120 days | ||||||
Series B Convertible Perpetual Preferred Stock | |||||||
Partners Capital And Distributions [Line Items] | |||||||
Preferred stock, shares outstanding (in shares) | 3,162,500 | 3,162,500 | |||||
Dividend rate (as a percent) | 6.50% | 6.50% | |||||
Preferred stock, liquidation preference (in dollars per share) | $ 100 | $ 100 | |||||
Series B Preferred Stock | |||||||
Partners Capital And Distributions [Line Items] | |||||||
Conversion rate | 2.1436 | ||||||
Minimum percentage of closing sale price of common stock under preferred stock conversion (as a percent) | 150.00% | ||||||
Minimum trading days of closing sale price of common stock under preferred stock conversion (in days) | 20 days | ||||||
Maximum trading days of closing sale price of common stock under preferred stock conversion including the last trading day (in days) | 30 days |
Partners' Capital, Equity and_9
Partners' Capital, Equity and Incentive Compensation Plans - Summary of Equity Issued (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Forward Shares Sold/(Settled) | ||
Shares and net proceeds available, beginning balance (in shares) | 9,961 | |
Forward Equity - Sales (in shares) | 1,504 | |
Forward Equity - Settlement (in shares) | (3,865) | |
Shares and net proceeds available, ending balance (in shares) | 7,600 | |
Net Proceeds Available/(Received) | ||
Shares and net proceeds available, beginning balance | $ 581,598 | |
Forward Equity - Sales | 91,620 | |
Forward Equity - Settlements | (215,964) | |
Shares and net proceeds available, ending balance | 457,254 | |
Proceeds from issuance or sale of equity, excluding dividends | $ 587,600 | |
Dividends declared | $ 6,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Revenue | $ 4,424 | $ 6,211 |
Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Term of contract | 10 years | |
Ownership interest (as a percent) | 50.00% | |
Tax, utility, insurance and other reimbursement | $ 169 | 176 |
Rent expense | 260 | 257 |
Total | 429 | 433 |
Development Fees | Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Revenue | 300 | 500 |
Management Fees | Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Revenue | $ 300 | $ 200 |
Noncontrolling Interest (Detail
Noncontrolling Interest (Details) | Nov. 01, 2014 | Mar. 31, 2021 | Oct. 13, 2013 |
Stock conversion ratio | 1 | ||
Previous Owners of QualityTech, LP | QualityTech, LP | |||
QualityTech, LP ownership percentage in operating partnership | 8.60% | 21.20% |
Earnings per share - Computatio
Earnings per share - Computation of Basic and Diluted Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net income | $ 7,918 | $ 8,120 |
Income attributable to noncontrolling interests | (79) | (110) |
Preferred stock dividends | (7,045) | (7,045) |
Earnings attributable to participating securities | (5,285) | (1,596) |
Net loss available to common stockholders after allocation to participating securities | $ (4,491) | $ (631) |
Weighted average shares outstanding - basic (in shares) | 64,442 | 58,038 |
Effect of Class O units, TSR units, FFO units and options to purchase Class A common stock on an "as if" converted basis (in shares) | 0 | 0 |
Weighted average shares outstanding - diluted (in shares) | 64,442 | 58,038 |
Basic net loss per share (in dollars per share) | $ (0.07) | $ (0.01) |
Diluted net loss per share (in dollars per share) | $ (0.07) | $ (0.01) |
Earnings per share - Antidiluti
Earnings per share - Antidilutive (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Class A Partnership units | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive shares excluded from the computation of diluted net earning per share | 6,466 | 6,671 |
Class O units, TSR units, FFO units and options to purchase common stock on an "as if" converted basis | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive shares excluded from the computation of diluted net earning per share | 1,212 | 655 |
Series B Convertible preferred stock on an "as if" converted basis | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive shares excluded from the computation of diluted net earning per share | 6,779 | 6,749 |
Contracts with Customers (Detai
Contracts with Customers (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
2021 (April - December) | $ 349,511 |
2021 | 394,619 |
2022 | 296,826 |
2023 | 240,951 |
2024 | 186,194 |
Thereafter | 554,414 |
Total | $ 2,022,515 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Details) - 3.875% Senior Notes $ in Millions | Mar. 31, 2021USD ($) |
Fair Value Of Financial Instruments [Line Items] | |
Interest rate | 3.875% |
Fair Value Measurements, Level 2 | |
Fair Value Of Financial Instruments [Line Items] | |
Fair value of loan based on current market rates | $ 500 |