CoreSite Realty 8-K CoreSite Reports Second Quarter 2021 Financial Results

Table of Contents

Overview
Earnings Release	3
Company Profile	7
Summary of Financial Data	8
Financial Statements
Consolidated Balance Sheets	9
Consolidated Statements of Operations	10
Reconciliations of Net Income to FFO, AFFO, EBITDAre and Adjusted EBITDA	11
Operating Portfolio
Operating Portfolio & 10 Largest Customers	12
Leasing Statistics	13
Geographic and Vertical Diversification	15
Development
Capital Expenditures and Completed Pre-Stabilized Projects	16
Development Summary	17
Capital Structure
Market Capitalization and Debt Summary	18
Interest Summary, Debt Covenants and Liquidity	19
Components of Net Asset Value	20
2021 Guidance	21
Appendix	22

Quarter Ended June 30, 2021

Overview Financial
Statements Operating
Portfolio Development Capital
Structure Components
of NAV Guidance Appendix 2

CoreSite Reports Second Quarter 2021 Financial Results

– Delivered Strong Q2 Financial Results, Including 7.7% Revenue Growth Year Over Year –

– Executed $7.8 Million of New and Expansion Sales, Driven by Retail Colocation and Small Scale –

– Increased Total Data Center Portfolio Occupancy by 220 Basis Points Year-to-Date –

DENVER, CO – July 29, 2021 – CoreSite Realty Corporation (NYSE:COR) (“the Company”), a premier provider of secure, reliable high-uptime data center campuses with high-performance cloud access and interconnection solutions across the U.S., today announced financial results for quarter ended June 30, 2021.

Q2 2021 Quarterly Highlights

o Key Financial Results –

o Grew operating revenues to $162.1 million, an increase of 7.7% year over year and 2.8% sequentially

o Delivered net income of $0.59 per common diluted share, an increase of $0.07 year over year and $0.08 sequentially

o Grew adjusted EBITDA to $87.4 million, an increase of 7.1% year over year and 1.6% sequentially

o Generated FFO, as adjusted, of $1.42 per diluted share and unit, an increase of $0.07, or 5.2% year over year and $0.02, or 1.4% sequentially

o Paid a dividend of $1.27 per share for the second quarter on July 15^th, an increase of 3.25% over the prior quarter

o Lease Commencements –

o Commenced 133 new and expansion leases for 59,174 net rentable square feet (“NRSF”), representing $8.4 million of annualized GAAP rent, for an average rate of $142 per NRSF

o Leasing Activity –

o Signed 112 new and expansion leases for 33,135 NRSF and $7.8 million of annualized GAAP rent, for an average rate of $235 per NRSF

o Renewed 330 leases for 136,564 NRSF and $20.4 million of annualized GAAP rent, for an average rate of $149 per NRSF

o Renewed leases reflected an increase of 4.2% in cash rent and 7.1% in GAAP rent, and we reported churn of 1.3%

Q2 Notable Events

o Achieved Stabilization at Our SV8 Data Center During the Quarter

o During the second quarter, our SV8 data center reached 98% occupancy less than two years after the delivery of SV8 Phase 1

o Completed the New Boston Chiller Plant Project

o The multipurpose chiller plant project will provide significantly expanded cooling capacity and generate a positive return on investment through improved power efficiency

o This project is another leap forward in our ongoing energy efficiency improvement initiative described in our sustainability report

“We are optimistic about the fundamental market drivers supporting our go-to-market strategy,” said Paul Szurek, CoreSite’s President and Chief Executive Officer. “Technology requiring low-latency, high-performance, hybrid-cloud IT architectures continues to play an increasingly important role in the success of businesses. We believe we are well-positioned to capture a good share of the edge needs in our major metropolitan U.S. markets.”

Quarter Ended June 30, 2021

Overview Financial
Statements Operating
Portfolio Development Capital
Structure Components
of NAV Guidance Appendix 3

Quarter Ended June 30, 2021

Sales Activity

CoreSite achieved new and expansion sales of $7.8 million of annualized GAAP rent for the quarter, which included annualized GAAP rent of $3.4 million, $3.6 million, and $0.8 million from retail colocation, small scale, and large scale leases, respectively.

“We remain focused on targeting retail and scale customers with performance-sensitive applications requiring high-performance interoperability and hybrid-cloud architectures,” said Steve Smith, CoreSite’s Chief Revenue Officer. “We expect these leases to drive higher yields with incremental power margin and interconnection revenues that we typically see through these types of deployments, while we continue to work on a strong funnel of scale opportunities with longer sales cycles.”

CoreSite had annualized GAAP backlog of $8.1 million, or $15.6 million on a cash basis, for leases signed by not yet commenced. The difference between GAAP and cash backlog is primarily driven by a handful of scale leases with power ramps in the early portion of their lease terms.

Other Financial Results

CoreSite’s $162.1 million of operating revenues for the second quarter, including $136.8 million of rental, power and related revenue, reflecting 7.6% year over year growth, $22.6 million of interconnection revenue, reflecting 8.2% year over year growth, and $2.7 million of office, light-industrial and other revenue. Net income was $28.5 million for the quarter, or $0.59 attributable to each common diluted share.

Development Activity

CoreSite continues to invest and develop new capacity as needed to meet market demand.

o LA3 Phase 2 comprised of 54,000 NRSF and 6 megawatts (“MW”) is under construction and continues to be on track for its estimated completion in the fourth quarter of 2021.

o NY2 Phase 4A comprised of 35,000 NRSF and 4 MWs commenced development during the quarter and is scheduled for completion in the first quarter of 2022.

CoreSite’s ongoing data center development and operational position includes –

o the ability to increase its occupied footprint of purpose-built data centers, both owned and leased, by approximately 1.9 million NRSF, or about 82.4%, including space unoccupied, under construction, pre-construction or held for development, and

o owning (versus leasing) 93.1% of its current and developable 4.3 million data center NRSF, supporting operational control, expansion and long-term expense management.

Balance Sheet and Liquidity

The Company’s balance sheet remains strong, with a ratio of net principal debt to second quarter annualized adjusted EBITDA of 5.0 times, or 4.9 times including GAAP backlog. As of the end of the second quarter, CoreSite had approximately $264.3 million of current liquidity, including $2.9 million of cash and $261.4 million of available capacity on its revolving credit facility.

Quarter Ended June 30, 2021

Overview Financial
Statements Operating
Portfolio Development Capital
Structure Components
of NAV Guidance Appendix 4

Quarter Ended June 30, 2021

2021 Updated Guidance

	Updated Guidance	Previous Guidance
Total operating revenues	$645 - $653 million	$642 - $652 million
General and administrative expenses	$46.5 - $50.5 million	$47 - $51 million
Adjusted EBITDA	$340 - $348 million	$336 - $346 million
Net income attributable to common diluted shares	$1.99 - $2.07	$1.81 - $1.91
FFO per common diluted share and OP unit, diluted – as adjusted	$5.52 -$5.60	$5.42 - $5.52
Cash rent growth on data center renewals	2% - 4%	0% - 2%

The increase of $0.09 per share, or 1.6%, at the midpoint of FFO per share, as adjusted, is largely driven by an increase in operating revenues, improved adjusted EBITDA margins, and to a lesser extent, by lower than anticipated interest expense. CoreSite’s full 2021 guidance can be found in the Company’s second quarter 2021 Supplemental Earnings Information on page 21.

Conference Call Details

CoreSite will host its second quarter 2021 earnings call on Thursday, July 29, 2021, at 12:00 p.m. (Eastern Time). The call will be accessible by dialing 1-877-407-3982 (domestic) or 1-201-493-6780 (international).

A replay will be available after the call until August 5, 2021, and can be accessed dialing 1-844-512-2921 (domestic) or 1-412-317-6671 (international). The passcode for the replay is 13720612.

The quarterly conference call also will be offered as a simultaneous webcast, accessible by visiting CoreSite.com and clicking on the “Investors” link. An on-line replay will be available for a limited time immediately following the call.

Concurrently with issuing its financial results, the Company will post its second quarter 2021 Supplemental Information on its website at CoreSite.com, under the “Investors” link.

Upcoming Conferences and Events

CoreSite’s management will participate in the Cowen 7^th Annual Communications Infrastructure Summit on August 10^th.

About CoreSite

CoreSite Realty Corporation (NYSE:COR) delivers secure, reliable, high-uptime data center campuses with high-performance cloud access and interconnection solutions to a growing customer ecosystem across eight key North American markets. More than 1,375 of the world’s leading enterprises, network operators, cloud providers, and supporting service providers choose CoreSite to connect, protect and optimize their performance-sensitive data, applications and computing workloads. Our scalable, flexible solutions and 475+ dedicated employees consistently deliver unmatched data center options — all of which leads to a best-in-class customer experience and lasting relationships. For more information, visit www.CoreSite.com.

CoreSite Contact

Kate Ruppe

Investor Relations Manager

303-222-7369
InvestorRelations@CoreSite.com

Quarter Ended June 30, 2021

Overview Financial
Statements Operating
Portfolio Development Capital
Structure Components
of NAV Guidance Appendix 5

Quarter Ended June 30, 2021

Forward Looking Statements

This earnings release and accompanying supplemental information may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “pro forma,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond CoreSite’s control that may cause actual results to differ significantly from those expressed in any forward-looking statement. These risks include, without limitation: the geographic concentration of the Company’s data centers in certain markets and any adverse developments in local economic conditions or the level of supply of or demand for data center space in these markets; fluctuations in interest rates and increased operating costs; difficulties in identifying properties to acquire and completing acquisitions; significant industry competition, including indirect competition from cloud service providers; failure to obtain necessary outside financing; the ability to service existing debt; the failure to qualify or maintain its status as a REIT; financial market fluctuations; changes in real estate and zoning laws and increases in real property tax rates;  the effects on our business operations, demand for our services and general economic conditions resulting from the spread of the novel coronavirus (“COVID-19”) in our markets, as well as orders, directives and legislative action by local, state and federal governments in response to such spread of COVID-19; and other factors affecting the real estate industry generally. All forward-looking statements reflect the Company’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in its most recent annual report on Form 10-K, and other risks described in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission.

Quarter Ended June 30, 2021

Overview Financial
Statements Operating
Portfolio Development Capital
Structure Components
of NAV Guidance Appendix 6

Company Profile

Low-latency, secure and reliable access to Amazon, Microsoft, Google, Alibaba Cloud, Oracle and IBM from eight key North American Markets.

ONE DATA CENTER PROVIDER. EVERYTHING YOU NEED.

CONNECTIVITY TO NETWORKS AND CLOUDS	THE BEST CUSTOMER EXPERIENCE
Connecting to cloud and network providers within the same data center campus can save thousands of dollars a month in networking and data egress fees while reducing latency •   Optionality to connect to 775+ cloud, IT and network service providers as business needs evolve •   31,000+ interconnections •   Multiple options for peering and cloud exchange, including the CoreSite Open Cloud ExchangeTM, and the Any2 Exchange for Internet Peering, the second largest peering exchange in the U.S. •   The CoreSite Interconnect GatewaySM allows customers to rapidly optimize application performance with a 100% managed solution •   CoreSite’s Inter-Site Connectivity allows SDN connectivity between its markets, enabling access to its national ecosystem	475+ team dedicated to ensuring optimal data center performance and meeting the needs of our 1,375+ customers at all times of day •   Consistent customer satisfaction demonstrated by customer expansion and retention •   Dedicated move-in and service representatives, and in-house 24/7 data center operations personnel •   100% uptime Service Level Agreement •   Prepared to support and respond to our customers, employees, and communities during the COVID-19 pandemic •   Direct access through our customer portal to provision new space, power, cross-connects, and monitor temperature, humidity, and power draw
HIGH GROWTH, HIGH-DENSITY SOLUTIONS	LOW LATENCY, EDGE MARKETS, GLOBAL REACH
Cloud connectivity is important, and so is the ability for a data center campus to grow as business evolves •   The ability to cost-effectively scale from a single cabinet to a large-scale deployment •   Data center campuses that connect our buildings via short-run dark fiber to a network/cloud dense campus ecosystem •   Flexible and high-density solutions	The closer a business is to its end users, the easier it is to provide a high quality experience •   25 operating data centers in eight major metros that provide access to 75% of US businesses within 5 milliseconds •   National footprint with international cloud and data center partnerships for multi-market requirements •   Access to subsea cables for international reach

Quarter Ended June 30, 2021

Overview Financial
Statements Operating
Portfolio Development Capital
Structure Components
of NAV Guidance Appendix 7

Summary of Financial Data

(in thousands, except per share, NRSF and MRR data)

	For the period of									Growth %		Growth %								Growth %
Summary of Results	Q2 2021			Q1 2021			Q2 2020			Q/Q		Y/Y		YTD 2021			YTD 2020			Y/Y
GAAP Financial Measures
Operating revenues	$	162,124		$	157,642		$	150,543		2.8	%	7.7	%	$	319,766		$	297,905		7.3	%
Net income		28,475			24,915			25,088		14.3		13.5			53,390			48,076		11.1
Net income attributable to common shares		25,249			21,868			20,671		15.5		22.1			47,117			38,519		22.3
Net income per share attributable to common shares - diluted	$	0.59		$	0.51		$	0.52		15.7		13.5		$	1.10		$	0.99		11.1
REIT Financial Measures(1)
Funds from operations (FFO) to shares and units	$	72,111		$	67,804		$	65,250		6.4	%	10.5	%	$	139,915		$	127,653		9.6	%
Funds from operations (FFO) to shares and units, as adjusted(2)		69,013			67,804			65,250		1.8		5.8			136,817			127,653		7.2
Adjusted funds from operations (AFFO)		64,624			60,489			65,291		6.8		(1.0)			125,113			125,401		(0.2)
EBITDAre		85,828			81,675			77,472		5.1		10.8			167,503			152,651		9.7
Adjusted EBITDA		87,410			86,071			81,644		1.6		7.1			173,481			160,305		8.2
FFO per common share and OP unit - diluted	$	1.48		$	1.40		$	1.35		5.7		9.6		$	2.88		$	2.64		9.1
FFO per common share and OP unit - diluted, as adjusted(2)	$	1.42		$	1.40		$	1.35		1.4		5.2		$	2.82		$	2.64		6.8
Other Financial Ratios
EBITDAre Margin		52.9	%		51.8	%		51.5	%	110	bps	140	bps		52.4	%		51.2	%	120	bps
Adjusted EBITDA Margin		53.9	%		54.6	%		54.2	%	(70)	bps	(30)	bps		54.3	%		53.8	%	50	bps

(1) See reconciliations of non-GAAP measures on page 11 and a discussion of the non-GAAP disclosures in the Appendix.

(2) FFO available to shares and units, as adjusted, excludes a one-time benefit of $3.1 million, or $0.06 per share and unit, as a result of the release of a tax liability during the quarter that is no longer expected to be incurred.

	As of
	Q2 2021			Q1 2021			Q4 2020			Q3 2020			Q2 2020
Dividend Activity
Dividends declared per share and OP unit	$	1.27		$	1.23		$	1.23		$	1.22		$	1.22
TTM FFO payout ratio		89.8	%		91.1	%		92.7	%		93.1	%		93.9	%
TTM AFFO payout ratio		96.9	%		95.5	%		95.3	%		94.8	%		95.2	%
Operating Portfolio Statistics			���
Operating data center properties		25			25			25			24			24
Stabilized data center NRSF		2,623,263			2,502,591			2,502,591			2,516,411			2,516,411
Stabilized data center NRSF occupied		2,290,109			2,189,595			2,174,897			2,207,215			2,226,153
Stabilized data center % occupied		87.3	%		87.5	%		86.9	%		87.7	%		88.5	%
Turn-Key Data Center ("TKD") Same-Store Statistics
MRR per cabinet equivalent	$	1,526		$	1,508		$	1,478		$	1,474		$	1,465
TKD NRSF % occupied		83.9	%		82.5	%		81.8	%		82.4	%		83.0	%
Market Capitalization & Net Principal Debt
Total enterprise value	$	8,339,401		$	7,600,880		$	7,817,206		$	7,479,878		$	7,514,871
Total net principal debt outstanding	$	1,754,634		$	1,740,209		$	1,717,957		$	1,692,106		$	1,621,314
Net Principal Debt to:
Annualized adjusted EBITDA		5.0	x		5.1	x		5.2	x		5.2	x		5.0	x
Annualized adjusted EBITDA, including backlog(1)		4.9	x		4.9	x		5.1	x		4.9	x		4.8	x
Enterprise value		21.0	%		22.9	%		22.0	%		22.6	%		21.6	%

(1) Backlog is the annualized rent for data center leases that were signed, but have not yet commenced during the quarter. Backlog for the quarter ended June 30, 2021, was $8.1 million on a GAAP basis and $15.6 million on a cash basis.

Quarter Ended June 30, 2021

Overview Financial
Statements Operating
Portfolio Development Capital
Structure Components
of NAV Guidance Appendix 8

Consolidated Balance Sheets

(in thousands, except per share data)

	June 30,		December 31,
	2021		2020
Assets:
Investments in real estate:
Land	$	109,400	$	104,734
Buildings and improvements		2,289,445		2,273,536
		2,398,845		2,378,270
Less: Accumulated depreciation and amortization		(946,668)		(867,975)
Net investment in operating properties		1,452,177		1,510,295
Construction in progress		365,430		319,411
Net investments in real estate		1,817,607		1,829,706
Operating lease right-of-use assets, net		164,282		173,928
Cash and cash equivalents		2,866		5,543
Accounts and other receivables, net		24,804		20,849
Lease intangibles, net		1,612		2,507
Goodwill		40,646		40,646
Other assets, net		105,406		103,094
Total assets	$	2,157,223	$	2,176,273
Liabilities and equity:
Liabilities
Debt, net	$	1,751,005	$	1,715,911
Operating lease liabilities		180,709		189,404
Accounts payable and accrued expenses		84,599		79,140
Accrued dividends and distributions		65,154		63,878
Acquired below-market lease contracts, net		2,214		2,313
Unearned revenue, prepaid rent and other liabilities		51,907		53,149
Total liabilities		2,135,588		2,103,795
Stockholders' equity
Common stock, par value $0.01		436		422
Additional paid-in capital		566,370		555,595
Accumulated other comprehensive loss		(13,828)		(20,526)
Distributions in excess of net income		(533,451)		(471,910)
Total stockholders' equity		19,527		63,581
Noncontrolling interests		2,108		8,897
Total equity		21,635		72,478
Total liabilities and equity	$	2,157,223	$	2,176,273

Quarter Ended June 30, 2021

Overview Financial
Statements Operating
Portfolio Development Capital
Structure Components
of NAV Guidance Appendix 9

Consolidated Statements of Operations

(in thousands, except per share data)

	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,		June 30,
	2021		2021		2020		2021		2020
Operating revenues:
Data center revenue:(1)
Rental, power, and related revenue	$	136,793	$	132,976	$	127,108	$	269,769	$	251,613
Interconnection revenue		22,606		22,160		20,897		44,766		40,982
Total data center revenue		159,399		155,136		148,005		314,535		292,595
Office, light-industrial and other revenue		2,725		2,506		2,538		5,231		5,310
Total operating revenues		162,124		157,642		150,543		319,766		297,905
Operating expenses:
Property operating and maintenance		45,964		42,632		41,037		88,596		81,220
Real estate taxes and insurance		7,006		6,735		5,599		13,741		11,789
Depreciation and amortization		45,367		44,628		41,779		89,995		82,770
Sales and marketing		5,804		5,862		5,837		11,666		11,981
General and administrative		11,781		11,517		11,603		23,298		22,870
Rent		8,839		9,221		8,995		18,060		17,394
Total operating expenses		124,761		120,595		114,850		245,356		228,024
Operating income		37,363		37,047		35,693		74,410		69,881
Other income		3,098		—		—		3,098		—
Interest expense		(11,982)		(12,123)		(10,586)		(24,105)		(21,769)
Income before income taxes		28,479		24,924		25,107		53,403		48,112
Income tax expense		(4)		(9)		(19)		(13)		(36)
Net income		28,475		24,915		25,088		53,390		48,076
Net income attributable to noncontrolling interests		3,226		3,047		4,417		6,273		9,557
Net income attributable to common shares	$	25,249	$	21,868	$	20,671	$	47,117	$	38,519
Net income per share attributable to common shares:
Basic	$	0.59	$	0.52	$	0.52	$	1.11	$	1.00
Diluted	$	0.59	$	0.51	$	0.52	$	1.10	$	0.99
Weighted average common shares outstanding:
Basic		42,786		42,378		39,873		42,583		38,605
Diluted		42,939		42,592		39,993		42,781		38,759

(1) Below is a breakout of our contractual data center rental, power, and tenant reimbursements and other revenue:

	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,		June 30,
	2021		2021		2020		2021		2020
Rental revenue	$	86,960	$	85,207	$	81,612	$	172,167	$	162,498
Power revenue		47,014		44,360		41,902		91,374		83,180
Tenant reimbursement and other		2,819		3,409		3,594		6,228		5,935
Rental, power, and related revenue	$	136,793	$	132,976	$	127,108	$	269,769	$	251,613

Quarter Ended June 30, 2021

Overview Financial
Statements Operating
Portfolio Development Capital
Structure Components
of NAV Guidance Appendix 10

Reconciliations of Net Income to FFO, AFFO, EBITDAre and Adjusted EBITDA

(in thousands, except per share data)

Reconciliation of Net Income to FFO

	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,		June 30,
	2021		2021		2020		2021		2020
Net income	$	28,475	$	24,915	$	25,088	$	53,390	$	48,076
Real estate depreciation and amortization		43,636		42,889		40,162		86,525		79,577
FFO available to common shareholders and OP unit holders	$	72,111	$	67,804	$	65,250	$	139,915	$	127,653
Other income adjustment(1)		(3,098)		—		—		(3,098)		—
FFO available to common shareholders and OP unit holders, as adjusted(1)	$	69,013	$	67,804	$	65,250	$	136,817	$	127,653
Weighted average common shares outstanding - diluted		42,939		42,592		39,993		42,781		38,759
Weighted average OP units outstanding - diluted		5,664		5,941		8,377		5,801		9,586
Total weighted average shares and units outstanding - diluted		48,603		48,533		48,370		48,582		48,345
FFO per common share and OP unit - diluted	$	1.48	$	1.40	$	1.35	$	2.88	$	2.64
FFO per common share and OP unit - diluted, as adjusted(1)	$	1.42	$	1.40	$	1.35	$	2.82	$	2.64

(1) FFO available to shares and units, as adjusted, excludes a one-time benefit of $3.1 million, or $0.06 per share and unit, as a result of the release of a tax liability during the quarter that is no longer expected to be incurred.

Reconciliation of FFO to AFFO

	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,		June 30,
	2021		2021		2020		2021		2020
FFO available to common shareholders and unit holders	$	72,111	$	67,804	$	65,250	$	139,915	$	127,653
Adjustments:
Amortization of deferred financing costs and hedge amortization		960		987		1,043		1,947		2,072
Non-cash compensation		4,680		4,393		4,172		9,073		7,654
Non-real estate depreciation		1,731		1,739		1,617		3,470		3,193
Straight-line rent adjustment		(479)		(1,792)		(165)		(2,271)		(584)
Amortization of above and below market leases		(37)		(37)		(34)		(74)		(68)
Other income adjustment		(3,098)		—		—		(3,098)		—
Recurring capital expenditures - Data Center		(4,244)		(4,169)		(1,550)		(8,413)		(2,968)
Recurring capital expenditures - Office and Light-industrial		(1,296)		(2,221)		—		(3,517)		—
Tenant improvements		(1,963)		(2,770)		(2,172)		(4,733)		(3,138)
Capitalized leasing costs		(3,741)		(3,445)		(2,870)		(7,186)		(8,413)
AFFO available to common shareholders and OP unit holders	$	64,624	$	60,489	$	65,291	$	125,113	$	125,401

Reconciliation of Net Income to EBITDAre and Adjusted EBITDA

	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,		June 30,
	2021		2021		2020		2021		2020
Net income	$	28,475	$	24,915	$	25,088	$	53,390	$	48,076
Adjustments:
Interest expense		11,982		12,123		10,586		24,105		21,769
Income taxes		4		9		19		13		36
Depreciation and amortization		45,367		44,628		41,779		89,995		82,770
EBITDAre	$	85,828	$	81,675	$	77,472	$	167,503	$	152,651
Non-cash compensation		4,680		4,393		4,172		9,073		7,654
Transaction costs / litigation		—		3		—		3		—
Other income adjustment		(3,098)		—		—		(3,098)		—
Adjusted EBITDA	$	87,410	$	86,071	$	81,644	$	173,481	$	160,305

For additional discussion of these non-GAAP measures, see the Appendix starting on page 22.

Quarter Ended June 30, 2021

Overview Financial
Statements Operating
Portfolio Development Capital
Structure Components
of NAV Guidance Appendix 11

Operating Portfolio & Top Customers

	Data Center Operating Portfolio
	Annualized		Stabilized			Pre-Stabilized			Total				Held for
	Rent		Total	Percent		Total	Percent			Percent		NRSF Under	Development
Market	($000)(1)		NRSF	Occupied(2)		NRSF	Occupied(2)		NRSF	Occupied(2)		Construction	NRSF	Total NRSF
San Francisco Bay	$	108,309	940,309	86.3	%	—	—	%	940,309	86.3	%	—	240,000	1,180,309
Los Angeles (3)		95,437	581,181	92.5		50,376	78.2		631,557	91.4		54,388	64,740	750,685
Northern Virginia		62,018	567,269	84.9		—	—		567,269	84.9		—	809,742	1,377,011
New York		24,266	168,267	88.3		34,589	28.6		202,856	78.2		34,587	47,212	284,655
Chicago		16,723	178,407	84.3		54,798	1.4		233,205	64.8		—	112,368	345,573
Boston		15,121	122,730	85.3		19,961	9.3		142,691	74.6		—	110,985	253,676
Denver		5,977	34,924	83.7		—	—		34,924	83.7		—	—	34,924
Miami		1,799	30,176	82.8		—	—		30,176	82.8		—	13,154	43,330
Total Data Center Facilities	$	329,650	2,623,263	87.3	%	159,724	32.5	%	2,782,987	84.1	%	88,975	1,398,201	4,270,163
Office & Light-Industrial (4)		9,391	418,110	84.5		—	—		418,110	84.5		—	(49,799)	368,311
Total Portfolio	$	339,041	3,041,373	86.9	%	159,724	32.5	%	3,201,097	84.2	%	88,975	1,348,402	4,638,474

(1) On a gross basis, our total portfolio annualized rent was approximately $346.1 million as of June 30, 2021, which includes $7.1 million in operating expense reimbursements under modified gross and triple-net leases.

(2) Includes customer leases that have commenced as of June 30, 2021. If all leases signed during the current and prior periods had commenced, the percent occupied would have been as follows:

Percent Leased	Stabilized		Pre-Stabilized		Total
Total Data Center Facilities	88.0	%	38.2	%	85.2	%
Total Portfolio	87.6	%	38.2	%	85.1	%

(3) Due to our decision to exit and vacate our leased data center space at LA4 and two computer rooms at LA1 by the end of 2021, we have excluded these leased spaces and the associated annualized rent from the reported Los Angeles market operating property portfolio.

(4) Included within our Northern Virginia market held for development space is our Reston Campus Expansion project comprised of 49,799 NRSF, which is currently operating as office and light-industrial space.

10 Largest Customers (total portfolio, including data center and office and light-industrial “OLI”)

											Weighted
					Percentage				Percentage		Average
			Number	Total	of Total		Annualized		of Total		Remaining
			of	Occupied	Operating		Rent		Annualized		Lease Term in
	CoreSite Vertical	Customer Industry	Locations	NRSF	NRSF(1)		($000)		Rent(2)		Months(3)
1	Cloud	Public Cloud	10	210,138	6.6	%	$	41,672	12.3	%	77
2	Enterprise	Digital Content	8	157,560	4.9			23,799	7.0		31
3	Cloud	Public Cloud	11	328,953	10.3			20,106	5.9		33
4	Cloud	Public Cloud	3	118,684	3.7			14,015	4.1		29
5	Network	Global Service Provider	9	45,297	1.4			9,872	2.9		15
6	Enterprise(4)	Travel / Hospitality	3	33,605	1.0			7,081	2.1		3
7	Cloud	Software as a Service	1	36,304	1.1			6,479	1.9		53
8	Network	US National Service Provider	14	39,778	1.2			5,142	1.6		28
9	Network	Cable Service Provider	16	22,386	0.7			4,634	1.4		35
10	Enterprise	SI & MSP	1	35,402	1.1			4,416	1.3		18
	Total / Weighted Average			1,028,107	32.0	%	$	137,216	40.5	%	43

(1) Represents the customer’s total occupied square feet divided by the total operating NRSF in the portfolio as of June 30, 2021.

(2) Represents the customer’s total annualized rent divided by the total annualized rent in the portfolio as of June 30, 2021.

(3) Weighted average based on percentage of total annualized rent expiring calculated as of June 30, 2021.

(4) This customer has $5.1 million of annualized rent expiring at the end of Q3 2021 and $1.7 million of annualized rent expiring at the beginning of Q4 2021, which will not be renewed.

See the Appendix starting on page 22 for definitions

Quarter Ended June 30, 2021

Overview Financial
Statements Operating
Portfolio Development Capital
Structure Components
of NAV Guidance Appendix 12

Leasing Statistics

Data Center Leasing Activity

			GAAP			GAAP		Cash
	Leasing	Number	Annualized		Total	Annualized		Rental		Cash		GAAP
	Activity	of	Rent		Leased	Rent per		Churn		Rent		Rent
	Period	Leases(1)	($000)		NRSF	Leased NRSF		Rate		Growth		Growth
New / expansion leases commenced	YTD 2021	263	$	14,321	87,950	$	163
	Q2 2021	133		8,395	59,174		142
	Q1 2021	130		5,926	28,776		206
	Q4 2020	147		20,397	109,154		187
	Q3 2020	130		7,188	33,233		216
	Q2 2020	121		7,925	45,271		175
New / expansion leases signed	YTD 2021	246	$	14,773	66,441	$	222
	Q2 2021	112		7,798	33,135		235
	Q1 2021	134		6,975	33,306		209
	Q4 2020	151		9,685	53,953		180
	Q3 2020	129		12,485	72,207		173
	Q2 2020	112		3,471	22,191		156
Renewal leases signed	YTD 2021	606	$	36,267	228,169	$	159	2.1	%	3.4	%	6.7	%
	Q2 2021	330		20,397	136,564		149	1.3		4.2		7.1
	Q1 2021	276		15,870	91,605		173	0.8		2.3		6.1
	Q4 2020	260		15,844	121,420		130	5.4		1.0		4.4
	Q3 2020	309		20,662	135,959		152	1.9		2.9		5.1
	Q2 2020	333		24,961	174,926		143	1.0		(1.5)		5.5

(1) Number of leases represents each agreement with a customer; a lease agreement could include multiple spaces and a customer could have multiple leases.

New / Expansion Leases Signed by Deployment Size by Period⁽¹⁾

	Q2 2021		Q1 2021		Q4 2020		Q3 2020		Q2 2020
GAAP Annualized Rent ($000)
Retail Colocation (< 130 CkW)	$	3,355	$	3,558	$	4,448	$	3,589	$	1,901
Small Scale (130 - 500 CkW)		3,598		2,639		3,721		1,634		1,570
Large Scale & Hyperscale (> 500 CkW)		845		778		1,516		7,262		—
Total GAAP Annualized Rent	$	7,798	$	6,975	$	9,685	$	12,485	$	3,471

(1) Our new and expansion leases signed are presented based on the critical kilowatt (“CkW”) size, which represents the maximum amount of power that customers can draw per their contractual lease agreement.

MRR per Cabinet Equivalent Billed (TKD Occupied Same-Store)

Quarter Ended June 30, 2021

Overview Financial
Statements Operating
Portfolio Development Capital
Structure Components
of NAV Guidance Appendix 13

Leasing Statistics

Lease Distribution (total portfolio, including total data center and office and light-industrial “OLI”)

				Total	Percentage				Percentage
	Number	Percentage		Operating	of Total		Annualized		of Total
	of	of All		NRSF of	Operating		Rent		Annualized
Lease Distribution	Leases	Leases		Leases	NRSF		($000)		Rent
Unoccupied data center
Leased but not commenced	—	—	%	29,367	0.9	%	$	—	—	%
Available capacity	—	—		412,477	12.9			—	—
Unoccupied OLI
Leased but not commenced	—	—		1,561	—			—	—
Available capacity	—	—		63,115	2.0			—	—
Data center deployment by CkW:
Retail Colocation (< 130 CkW)	2,209	85.9		531,645	16.6			81,093	24.0
Small Scale (130 - 500 CkW)	153	6.0		451,717	14.1			72,037	21.2
Large Scale (501 - 2,000 CkW)	49	1.9		421,146	13.2			67,852	20.0
Hyperscale (> 2,000 CkW)	12	0.5		513,784	16.1			91,611	27.0
Powered shell	18	0.7		422,851	13.2			17,057	5.0
OLI	128	5.0		353,434	11.0			9,391	2.8
Portfolio Total	2,569	100.0	%	3,201,097	100.0	%	$	339,041	100.0	%

Lease Expirations (total portfolio, including total data center and office and light-industrial “OLI”)

		Total												Annualized
	Number	Operating		Percentage				Percentage		Annualized		Annualized		Rent Per
	of	NRSF of		of Total		Annualized		of Total		Rent Per		Rent at		Leased
	Leases	Expiring	���	Operating		Rent		Annualized		Leased		Expiration		NRSF at
Year of Lease Expiration	Expiring(1)	Leases		NRSF		($000)		Rent		NRSF		($000)(2)		Expiration
Unoccupied data center	—	441,844		13.8	%	$	—	—	%	$	—	$	—	$	—
Unoccupied OLI	—	64,676		2.0			—	—			—		—		—
2021	615	382,497		11.9			54,916	16.2			144		54,938		144
2022	1,049	509,323		15.9			80,895	23.8			159		82,406		162
2023	397	390,610		12.3			58,738	17.4			150		61,716		158
2024	237	215,246		6.7			33,973	10.0			158		37,871		176
2025	90	236,095		7.4			33,490	9.9			142		41,591		176
2026-Thereafter	53	607,372		19.0			67,638	19.9			111		78,572		129
OLI (3)	128	353,434		11.0			9,391	2.8			27		11,157		32
Portfolio Total / Weighted Average	2,569	3,201,097		100.0	%	$	339,041	100.0	%	$	126	$	368,251	$	137

(1) Includes leases that upon expiration will automatically be renewed, primarily on a year-to-year basis. Number of leases represents each agreement with a customer; a lease agreement could include multiple spaces and a customer could have multiple leases.

(2) Represents the final monthly contractual rent under existing customer leases as of June 30, 2021, multiplied by 12. This amount reflects total annualized base rent before any one-time or non-recurring rent abatements and excludes power revenue, interconnection revenue and operating expense reimbursement. Leases expiring during 2021 include annualized rent of $8.1 million associated with lease terms currently on a month-to-month basis.

(3) The office and light-industrial leases are scheduled to expire as follows:

	NRSF of	Annualized
	Expiring	Rent
Year	Leases	($000)
2021	29,411	$	846
2022	76,393		1,832
2023	134,272		2,963
2024	13,502		433
2025	25,796		870
Thereafter	74,060		2,447
Total OLI	353,434	$	9,391

Quarter Ended June 30, 2021

Overview Financial
Statements Operating
Portfolio Development Capital
Structure Components
of NAV Guidance Appendix 14

Geographic and Vertical Diversification

Geographical Diversification

		Percentage of Total Data Center
		Annualized Rent
	Metropolitan Market	June 30, 2021		December 31, 2020
	San Francisco Bay	32.8	%	32.7	%
	Los Angeles	29.0		29.2
	Northern Virginia	18.8		18.5
	New York	7.4		7.2
	Chicago	5.1		5.3
	Boston	4.6		4.8
	Denver	1.8		1.8
	Miami	0.5		0.5
	Total	100.0	%	100.0	%

Vertical Diversification

		Percentage of Total Data Center
		Annualized Rent
	Vertical	June 30, 2021		December 31, 2020
	Enterprise	42.0	%	42.2	%
	Cloud	34.3		33.8
	Network	23.7		24.0
	Total	100.0	%	100.0	%

Quarter Ended June 30, 2021

Overview Financial
Statements Operating
Portfolio Development Capital
Structure Components
of NAV Guidance Appendix 15

Capital Expenditures and Completed

Pre-Stabilized Projects

(in thousands, except NRSF, cost per NRSF, MW, and cost per MW data)

Capital Expenditures and Repairs and Maintenance

	Three Months Ended
	June 30,		March 31,		December 31,		September 30,
	2021		2021		2020		2020
Data center expansion(1)	$	28,707	$	19,951	$	29,110	$	37,117
Non-recurring investments(2)		744		551		1,078		980
Tenant improvements		1,963		2,770		1,506		1,275
Recurring capital expenditures - Data Center(3)		4,244		4,169		2,457		2,911
Recurring capital expenditures - Office and Light-industrial(3)		1,296		2,221		—		—
Total capital expenditures	$	36,954	$	29,662	$	34,151	$	42,283
Repairs and maintenance expense(4)	$	3,936	$	3,688	$	4,214	$	3,649

(1) Data center expansion capital expenditures include new data center construction, development projects adding capacity to existing data centers and other revenue generating investments. Data center expansion also includes investment of Deferred Expansion Capital.

(2) Non-recurring investments include upgrades to existing data center or office space and company-wide improvements that are ancillary to revenue generation, such as internal system development for on-premises IT infrastructure and system-wide security upgrades, which have a future economic benefit.

(3) Recurring capital expenditures within our data center space include required equipment upgrades with future economic benefit within our operating portfolio. Recurring capital incurred within our office and light-industrial space includes upgrades to convert vacant unrefined space into useable office space in preparation for a specific customer deployment.

(4) Repairs and maintenance expense is classified within property operating and maintenance expense in the consolidated statements of operations. These expenditures represent recurring maintenance contracts and repairs to operating equipment necessary to maintain current operations.

Completed Pre-Stabilized Projects

	Metropolitan			Power			Cost Per		Cost Per		Percent		Percent
Projects / Facilities	Market	Completion	NRSF	(MW)	Cost(1)		NRSF		MW		Leased(2)		Occupied
BO1	Boston	Q4 2019	19,961	1.5	$	7,124	$	357	$	4,749	9.3	%	9.3	%
NY2 Phase 3	New York	Q1 2020	34,589	4.0		50,144		1,450		12,536	35.8		28.6
CH2 Phase 1	Chicago	Q2 2020	54,798	6.0		62,988		1,149		10,498	3.8		1.4
LA3 Phase 1	Los Angeles	Q4 2020	50,376	6.0		72,513		1,439		12,086	88.9		78.2
Total completed pre-stabilized			159,724	17.5	$	192,769	$	1,207	$	11,015	38.2	%	32.5	%

(1) Cost includes capital expenditures related to the specific project / phase and, for CH2 Phase 1, LA3 Phase 1, and NY2 Phase 3, also includes allocations of capital expenditures related to land, building shell, and infrastructure that were incurred at the beginning or during the first phase of the overall project.

(2) Includes customer leases that have been signed as of June 30, 2021, but have not commenced. The percent leased is determined based on leased NRSF as a proportion of total pre-stabilized NRSF.

Quarter Ended June30, 2021

Overview Financial
Statements Operating
Portfolio Development Capital
Structure Components
of NAV Guidance Appendix 16

Development Summary

Data Center Leasing Capacity

The following chart sets forth the total data center power capacity in megawatts (“MW”), net of backlog, available in our portfolio as of the end of each reporting period presented:

(1) The available capacity represents total MW’s within unoccupied operating data center space, net of backlog.

(2) The MWs under construction represents sellable capacity that will be available for lease according to the estimated timeline disclosed in the development table below.

(3) The developable MW’s represents the sellable capacity that is currently held for development within existing core and shell buildings.

Development Detail

(in thousands, except NRSF and power data)

	Under Construction									Held for Development				Total
			Costs							Estimated				Estimated
	Estimated		Incurred		Estimated		Percent		Power				Power
Projects/Facilities	Completion	NRSF	To- Date		Total		Leased		(MW)	NRSF	Total Cost		(MW)	NRSF		Cost
Data center expansion
BO1	—	—	$	—	$	—	—	%	—	110,985	$	71,200	9.0	110,985	$	71,200
CH2
Phase 2	—	—		—		—	—		—	56,184		40,000	6.0	56,184		40,000
Phase 3	—	—		—		—	—		—	56,184		40,000	6.0	56,184		40,000
LA1	—	—		—		—	—		—	10,352		1,250	0.5	10,352		1,250
LA3
Phase 2	Q4 2021	54,388		10,369		30,100	4.4		6.0	—		—	—	54,388		30,100
Phase 3	—	—		—		—	—		—	54,388		36,000	6.0	54,388		36,000
MI1	—	—		—		—	—		—	13,154		7,500	1.0	13,154		7,500
NY2
Phase 4A	Q1 2022	34,587		3,118		19,400	—		4.0	—		—	—	34,587		19,400
Phase 4B	—	—		—		—	—		—	12,112		3,000	1.0	12,112		3,000
Phase 5	—	—		—		—	—		—	35,100		40,000	4.5	35,100		40,000
VA3
Phase 1C	—	—		—		—	—		—	49,316		35,000	6.0	49,316		35,000
Phase 1D	—	—		—		—	—		—	34,143		22,000	3.0	34,143		22,000
Phase 1E	—	—		—		—	—		—	23,365		22,000	3.0	23,365		22,000
Total data center expansion		88,975	$	13,487	$	49,500	4.4	%	10.0	455,283	$	317,950	46.0	544,258	$	367,450
New development
Ground-up construction
VA3
Phase 2	—	—		—		—	—		—	289,173		200,000	27.0	289,173		200,000
Reston Campus Expansion
Future Phases	—	—		—		—	—		—	413,745		550,000	54.0	413,745		550,000
Pre-construction
SV9	—	—		—		—	—		—	240,000		325,000	30.0	240,000		325,000
Total new development		—	$	—	$	—	—	%	—	942,918	$	1,075,000	111.0	942,918	$	1,075,000
Total development(1)(2)		88,975	$	13,487	$	49,500	4.4	%	10.0	1,398,201	$	1,392,950	157.0	1,487,176	$	1,442,450

(1) In addition to new development and incremental capacity in existing core and shell buildings, we have land adjacent to our NY2 facility, in the form of an existing parking lot. By utilizing this land, we believe we can build approximately 100,000 NRSF of data center capacity in Secaucus, New Jersey, upon receipt of necessary entitlements.

(2) We have an estimated $22.1 million in deferred expansion capital under construction at multiple properties as of June 30, 2021, of which $13.8 million has been incurred to-date. We estimate approximately $52 million of additional deferred expansion capital may be required in the future to support existing or anticipated future customer utilization.

Quarter Ended June30, 2021

Overview Financial
Statements Operating
Portfolio Development Capital
Structure Components
of NAV Guidance Appendix 17

Market Capitalization and Debt Summary

(in thousands, except per share data)

Market Capitalization

	Shares or
	Equivalents	Market Price as of		Market Value
	Outstanding	June 30, 2021		Equivalents
Common shares	44,206	$	134.60	$	5,950,063
Operating partnership units	4,715		134.60		634,704
Total equity					6,584,767
Total net principal debt outstanding(1)					1,754,634
Total enterprise value				$	8,339,401
Net principal debt to enterprise value					21.0	%

(1) Net principal debt outstanding includes total principal debt outstanding net of $2.9 million of cash and cash equivalents.

Debt Summary⁽¹⁾

	Weighted		Outstanding as of:
	Average		June 30,		December 31,
Instrument	Rate(2)		2021		2020
Revolving credit facility	1.35	%	$	182,500	$	148,500
Senior unsecured term loans	2.27			700,000		700,000
Senior unsecured notes	4.16			875,000		875,000
Total principal debt outstanding				1,757,500		1,723,500
Unamortized deferred financing costs				(6,495)		(7,589)
Total debt			$	1,751,005	$	1,715,911
Weighted average interest rate	3.12	%
Floating rate vs. fixed rate debt				10% / 90%		9% / 91%

(1) See the filed Form 10-K and 10-Q for information on specific debt instruments.

(2) The interest rates above reflect the impacts of interest rate swap agreements.

Debt Maturities

(1) The revolving credit facility contains a one-time extension option, which, if exercised, would extend the maturity date to November 2024.

Quarter Ended June 30, 2021

Overview Financial
Statements Operating
Portfolio Development Capital
Structure Components
of NAV Guidance Appendix 18

Interest Summary, Debt Covenants and Liquidity

(in thousands)

Interest Expense Components

	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
	2021			2021			2020			2021			2020
Interest expense and fees	$	13,761		$	13,700		$	12,810		$	27,461		$	26,430
Amortization of deferred financing costs and hedge amortization		960			987			1,043			1,947			2,072
Capitalized interest		(2,739)			(2,564)			(3,267)			(5,303)			(6,733)
Total interest expense	$	11,982		$	12,123		$	10,586		$	24,105		$	21,769
Percent capitalized		18.6	%		17.5	%		23.6	%		18.0	%		23.6	%

Debt Covenants and Liquidity

	Revolving Credit Facility and Senior Unsecured Term Loans and Notes
		June 30,			March 31,			December 31,			September 30,			June 30,
	Required Compliance	2021			2021			2020			2020			2020
Fixed charge coverage ratio	Greater than 1.50x		6.4	x		6.2	x		6.0	x		6.1	x		6.5	x
Total indebtedness to gross asset value	Less than 60%		33.0	%		33.8	%		33.6	%		32.3	%		31.1	%
Secured debt to gross asset value	Less than 40%		—	%		—	%		—	%		—	%		—	%
Revolving credit facility availability		$	450,000		$	450,000		$	450,000		$	450,000		$	450,000
Borrowings outstanding			(182,500)			(169,000)			(148,500)			(120,000)			(99,000)
Outstanding letters of credit			(6,053)			(6,053)			(6,053)			(6,053)			(6,053)
Current availability		$	261,447		$	274,947		$	295,447		$	323,947		$	344,947
Cash			2,866			3,791			5,543			2,894			2,686
Current liquidity		$	264,313		$	278,738		$	300,990		$	326,841		$	347,633
Subsequent debt financing(1)			—			—			—			—			50,000
Pro forma liquidity		$	264,313		$	278,738		$	300,990		$	326,841		$	397,633

(1) On May 6, 2020, the Company executed a note purchase agreement to issue an aggregate principal of $150 million senior notes. On May 6, 2020, we issued $100 million of senior notes, and on July 14, 2020, we issued the remaining $50 million of senior notes. The proceeds from the senior notes were used to pay down outstanding amounts on the revolving credit facility.

Quarter Ended June 30, 2021

Overview Financial
Statements Operating
Portfolio Development Capital
Structure Components
of NAV Guidance Appendix 19

Components of Net Asset Value (NAV)

(in thousands)

Cash Net Operating Income

Reconciliation of Net Operating Income (NOI)	Q2 2021		Annualized
Operating Income	$	37,363	$	149,452
Adjustments:
Depreciation and amortization		45,367		181,468
General and administrative		11,781		47,124
Net Operating Income	$	94,511	$	378,044
Cash Net Operating Income (Cash NOI)
Net Operating Income	$	94,511	$	378,044
Adjustments:
Straight-line rent		(479)		(1,916)
Amortization of above and below-market leases		(37)		(148)
Cash NOI	$	93,995	$	375,980
Cash NOI with backlog (85.1% leased)(1)	$	97,622	$	390,488
Cash stabilized NOI (93% leased)	$	106,685	$	426,740

(1) Cash NOI with backlog includes cash backlog as of June 30, 2021, less any leasing of currently occupied NRSF and data center projects under development.

Development Projects

Data Center Projects Under Construction	Q2 2021
TKD construction in progress(1)	$	13,487
Remaining spend(1)		36,013
Total	$	49,500
Targeted stabilized annual yields		12 - 16	%
Annualized pro forma NOI range	$	5,900 - 8,000

(1) Does not include spend associated with leasing commissions. See page 17 for further breakdown of data center projects under construction.

Other Assets and Liabilities

Other Assets	Q2 2021
Remaining construction in progress(1)	$	351,943
Cash and cash equivalents		2,866
Accounts and other receivables		24,804
Other tangible assets		28,630
Total other assets	$	408,243
Liabilities
Principal debt	$	1,757,500
Accounts payable, accrued expenses and other liabilities		136,506
Accrued dividends and distributions		65,154
Total liabilities	$	1,959,160
Weighted average common shares and units - diluted		48,603

(1) Represents the book value of in-progress capital projects, including land and shell building, of future data center expansion, non-recurring investments, tenant improvements and recurring capital expenditures.

Quarter Ended June 30, 2021

Overview Financial
Statements Operating
Portfolio Development Capital
Structure Components
of NAV Guidance Appendix 20

2021 Guidance

(in thousands, except per share data)

The annual guidance provided below represents forward-looking projections, which are based on current economic conditions, internal assumptions about our existing customer base and the supply and demand dynamics of the markets in which we operate. Please refer to the press release for additional information on forward-looking statements.

				2021									Implied
	Low			High			Mid			2020			Growth(1)
Net income attributable to common diluted shares	$	1.99		$	2.07		$	2.03		$	1.95		4.1	%
Real estate depreciation and amortization		3.59			3.59			3.59			3.36
Other income adjustment(2)		(0.06)			(0.06)			(0.06)			—
FFO per common share and OP unit - diluted, as adjusted	$	5.52		$	5.60		$	5.56		$	5.31		4.7	%
Projected operating results:
Total operating revenues	$	645,000		$	653,000		$	649,000		$	606,824		7.0	%
Interconnection revenues		88,500			93,500			91,000			84,073		8.2
General and administrative expenses		46,500			50,500			48,500			44,026		10.2
Property taxes and insurance		27,500			29,500			28,500			23,996		18.8
Net Income	$	97,000		$	101,000		$	99,000		$	94,617		4.6	%
Depreciation and amortization		181,500			181,500			181,500			168,915		7.5
Other adjustments(3)		61,500			65,500			63,500			60,985		4.1
Adjusted EBITDA	$	340,000		$	348,000		$	344,000		$	324,517		6.0	%
Guidance drivers:
Annual rental churn rate		6.5	%		8.5	%		7.5	%		11.6	%
Cash rent growth on data center renewals		2.0	%		4.0	%		3.0	%		0.8	%
Capitalized interest		16.0	%		20.0	%		18.0	%		22.1	%
Sales and marketing expense as a percentage of revenue		3.7	%		3.9	%		3.8	%		3.9	%
Capital expenditures:
Data center expansion	$	165,000		$	195,000		$	180,000		$	202,992
Non-recurring investments		2,000			5,000			3,500			3,963
Tenant improvements		4,500			6,500			5,500			5,919
Recurring capital expenditures - Data Center		10,000			15,000			12,500			8,336
Recurring capital expenditures - Office & Light-industrial(4)		3,500			3,500			3,500			—
Total capital expenditures	$	185,000		$	225,000		$	205,000		$	221,210

(1) Implied growth is based on the midpoint of 2021 guidance.

(2) FFO available to shares and units, as adjusted, excludes a one-time benefit of $3.1 million, or $0.06 per share and unit, as a result of the release of a tax liability during the quarter that is no longer expected to be incurred

(3) Refer to the appendix for the adjustments made to net income to calculate adjusted EBITDA.

(4) Included in our recurring capital expenditures is an estimated $3.5 million of expenditures related to an office lease that commenced in Q2 2021.

Quarter Ended June 30, 2021

Overview Financial
Statements Operating
Portfolio Development Capital
Structure Components
of NAV Guidance Appendix 21

Appendix

Definitions

This document includes certain non-GAAP financial measures that management believes are helpful in understanding our business, as further described below. Our definition and calculation of non-GAAP financial measures may differ from those of other Real Estate Investment Trusts (“REITs”) and therefore may not be comparable. The non-GAAP measures should not be considered an alternative to net income as an indicator of our performance and should be considered only a supplement to net income, cash flows from operating, investing or financing activities as measures of profitability and/or liquidity, computed in accordance with GAAP.

Adjusted Funds From Operations “AFFO” is a non-GAAP measure that is used as a supplemental
operating measure specifically for comparing year over year ability to fund dividend distribution from operating activities. We use AFFO as a basis to address our ability to fund our dividend payments. AFFO is calculated by adding to or subtracting from FFO:

1. Plus: Amortization of deferred financing costs and hedge amortization

2. Plus: Non-cash compensation

3. Plus: Non-real estate depreciation

4. Plus: Impairment charges

5. Plus: Below market debt amortization

6. Plus / Less: Net straight line rent adjustments (lessor revenue and lessee expense)

7. Plus / Less: Net amortization of above and below market leases

8. Less: Recurring capital expenditures

9. Less: Tenant improvements

10. Less: Capitalized leasing costs

Capitalized leasing costs consist of commissions payable to third parties, including brokers, leasing agents, referral agents, and internal sales commissions payable to employees. Capitalized leasing costs are accrued and deducted from AFFO generally in the period the lease is executed. Leasing costs are generally paid a) to third party brokers and internal sales employees 50% at customer lease signing and 50% at lease commencement and b) to referral and leasing agents monthly over the lease term as and to the extent we receive payment from the end customer.

In Q2 2021, we excluded from AFFO a one-time, non-cash benefit of $3.1 million as a result of the release of a tax liability during the quarter that is no longer expected to be incurred.

AFFO is not intended to represent cash flow from operations for the period, and is only intended to provide an additional measure of performance by adjusting for the effect of certain items noted above included in FFO. Other REITs widely report AFFO, however, other REITs may use different methodologies for calculating AFFO and, accordingly, our AFFO may not be comparable to other REITs.

Annualized Rent

Monthly contractual rent under existing commenced customer leases as of quarter-end, multiplied by 12. This amount reflects total annualized base rent before any one-time or non-recurring rent abatements and excludes power revenue, interconnection revenue and operating expense reimbursement.

Quarter Ended June 30, 2021

Overview Financial
Statements Operating
Portfolio Development Capital
Structure Components
of NAV Guidance Appendix 22

Appendix

Data Center Leasing Metrics

● Cash Rental Churn Rate – represents data center leases which are not renewed, fully terminated, or partially terminated during the period. Rental churn is calculated based on the annualized cash rent of data center expired leases terminated in the period, compared with total data center annualized rent at the beginning of the period.

● Cash and GAAP Rent Growth– represents the change in rental rates on renewed data center leases signed during the period, as compared with the previous rental rates for the same space. Cash and GAAP rent growth are calculated based on annualized rent from the renewed data center lease compared to annualized rent from the expired data center lease.

Data Center Net Rentable Square Feet (“NRSF”)

Both occupied and available data center NRSF includes a factor based on management’s estimate of space to account for a customer’s proportionate share of the required data center support space (such as the mechanical, telecommunications and utility rooms) and building common areas, which may be updated on a periodic basis to reflect the most current build-out of our properties.

Deferred Expansion Capital

As we construct data center capacity, we work to optimize both the amount of the capital we deploy on power and cooling infrastructure and the timing of that capital deployment; as such, we generally construct our power and cooling infrastructure supporting our data center NRSF based on our estimate of customer utilization. This practice can result in our investment at a later time in Deferred Expansion Capital. We define Deferred Expansion Capital as our estimate of the incremental capital we may invest in the future to add power or cooling infrastructure to support existing or anticipated future customer utilization of NRSF within our operating data centers. From time to time, we may revise our estimate of Deferred Expansion Capital as well as the potential time period during which we may invest it. See the Development Summary for more detail.

Earnings before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre) and Adjusted EBITDA

EBITDAre is calculated in accordance with the standards established by the National Association of Real Estate Investment Trusts (“Nareit”). EBITDAre is defined as earnings before interest, taxes, depreciation and amortization, gains or losses from the sale of depreciated property, and impairment of depreciated property. We calculate adjusted EBITDA by adding our non-cash compensation expense, transaction costs from unsuccessful deals and business combinations and litigation expense to EBITDAre as well as adjusting for the impact of other impairment charges, gains or losses from sales of undepreciated land and gains or losses on early extinguishment of debt. In Q2 2021, we excluded from adjusted EBITDA a one-time, non-cash benefit of $3.1 million as a result of the release of a tax liability during the quarter that is no longer expected to be incurred.

Management uses EBITDAre and adjusted EBITDA as indicators of our ability to incur and service debt. In addition, we consider EBITDAre and adjusted EBITDA to be appropriate supplemental measures of our performance because they eliminate depreciation and interest, which permits investors to view income from operations without the impact of

Quarter Ended June 30, 2021

Overview Financial
Statements Operating
Portfolio Development Capital
Structure Components
of NAV Guidance Appendix 23

non-cash depreciation or the cost of debt. However, because EBITDAre and adjusted EBITDA are calculated before recurring cash charges including interest expense and taxes, and are not adjusted for capital expenditures or other recurring cash requirements of our business, their utilization as a cash flow measurement is limited.

Funds From Operations (“FFO”) is a supplemental measure of our performance which should be considered
along with, but not as an alternative to, net income and cash provided by operating activities as a measure of operating performance. We calculate FFO in accordance with the standards established by Nareit. FFO represents net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of property and undepreciated land and impairment write-downs of depreciable real estate, plus real estate related depreciation and amortization (excluding amortization of deferred financing costs) and after adjustments for unconsolidated partnerships and joint ventures.

Our management uses FFO as a supplemental performance measure because, by excluding real estate related depreciation and amortization and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs.

We offer this measure because we recognize that investors use FFO as a basis to compare our operating performance with that of other REITs. However, the utility of FFO as a measure of our performance is limited because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our financial condition and results from operations. FFO is a non-GAAP measure and should not be considered a measure of liquidity, an alternative to net income, cash provided by operating activities or any other performance measure determined in accordance with GAAP, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions. In addition, our calculations of FFO are not necessarily comparable to FFO as calculated by other REITs that do not use the same definition or implementation guidelines or interpret the standards differently from us. Investors in our securities should not rely on these measures as a substitute for any GAAP measure, including net income.

GAAP Annualized Rent

Represents the monthly average contractual rent as stated on customer contracts, multiplied by 12. This amount is inclusive of any one-time or non-recurring rent abatements and excludes power revenue, interconnection revenue and operating expense reimbursement.

Monthly Recurring Revenue per Cabinet Equivalent Billed

Represents the turn-key monthly recurring colocation revenue (“MRR”) per cabinet equivalent billed. We define MRR as recurring contractual revenue, including rental, power, and interconnection revenue and operating expense reimbursement, under existing commenced customer leases. MRR per cabinet equivalent is calculated as (current quarter MRR/3) divided by ((quarter-end cabinet equivalents billed plus prior quarter-end cabinet equivalents billed)/2). Cabinet equivalents are calculated as cage-usable square feet (turn-key leased NRSF/NRSF factor) divided by 25.

Quarter Ended June 30, 2021

Overview Financial
Statements Operating
Portfolio Development Capital
Structure Components
of NAV Guidance Appendix 24

Appendix

Net Operating Income (“NOI”) and Cash NOI – NOI, and cash NOI are supplemental measures for the operating performance of the Company’s portfolio. NOI is operating revenues less operating expenses adjusted for items such as depreciation and amortization, general and administrative expenses, transaction costs from unsuccessful deals and business combinations and litigation expenses. Cash NOI is NOI less straight-line rents and above and below market rent amortization.

NRSF Held for Development

Represents incremental data center capacity that may be constructed in existing facilities that requires significant capital investment in order to develop new data center facilities. The estimates are based on current construction plans and expectations regarding entitlements, and they are subject to change based on current economic conditions, final zoning approvals, and the supply and demand of the market. The estimated NRSF for new development projects is based on the entire building size. NRSF placed into service may change depending on the final construction and utilization of the built space.

NRSF Under Construction

Represents NRSF for which substantial activities are ongoing to prepare the property for its intended use following development. The NRSF reflects management’s estimate of engineering drawings and required support space and is subject to change based on final demising of space. TKD estimated development costs include two components: 1) general construction to ready the NRSF as data center space and 2) power, cooling and other infrastructure to provide the designed amount of power capacity for the project. Following development completion, incremental capital, referred to as Deferred Expansion Capital, may be invested to support existing or anticipated future customer utilization of NRSF within our operating data centers.

NRSF Pre-Construction

Represents NRSF for which the projects are in the design and permitting stage. Construction will commence upon receipt of the applicable permits. The estimated completion dates are subject to change based on the timing of final design and permitting approvals.

Turn-Key Same-Store

Includes turn-key data center space that was leased or available to be leased to our colocation customers as of December 31, 2019, at each of our properties, and excludes powered shell data center space, office and light-industrial space and space for which development was completed and became available to be leased after December 31, 2019. The turn-key same-store space as of December 31, 2019, is 2,168,173 NRSF. We track same-store on a computer room basis within each data center facility.

Stabilized and Pre-Stabilized NRSF

Data center projects and facilities that recently have been developed and are in the initial lease-up phase are classified as pre-stabilized NRSF until they reach 85% occupancy or have been in service for 24 months. Pre-stabilized projects and facilities become stabilized operating properties at the earlier of achievement of 85% occupancy or 24 months after development completion and are included in the stabilized operating NRSF.

Quarter Ended June 30, 2021

Overview Financial
Statements Operating
Portfolio Development Capital
Structure Components
of NAV Guidance Appendix 25