Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 25, 2016 | Jun. 30, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | QTS Realty Trust, Inc. | ||
Entity Central Index Key | 1,577,368 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Public Float | $ 1.5 | ||
Common Class A [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 41,103,168 | ||
Common Class B [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 133,000 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Real Estate Assets | ||
Land | $ 57,112 | $ 48,577 |
Buildings and improvements | 1,180,386 | 914,286 |
Less: Accumulated depreciation | (239,936) | (180,167) |
Total real estate assets | 997,562 | 782,696 |
Construction in progress | 345,655 | 214,719 |
Real Estate Assets, net | 1,343,217 | 997,415 |
Cash and cash equivalents | 8,804 | 10,788 |
Rents and other receivables, net | 28,233 | 15,579 |
Acquired intangibles, net | 115,702 | 18,000 |
Deferred costs, net | 40,212 | 37,058 |
Prepaid expenses | 6,502 | 3,079 |
Goodwill | 181,738 | |
Other assets, net | 33,101 | 24,640 |
TOTAL ASSETS | 1,757,509 | 1,106,559 |
LIABILITIES | ||
Unsecured credit facility | 524,002 | 239,838 |
Senior notes, net of discount | 297,976 | 297,729 |
Mortgage notes payable | 86,600 | |
Capital lease and lease financing obligations | 49,761 | 13,062 |
Accounts payable and accrued liabilities | 95,924 | 64,607 |
Dividends and distributions payable | 15,378 | 10,705 |
Advance rents, security deposits and other liabilities | 18,798 | 3,302 |
Deferred income taxes | 18,813 | |
Deferred income | 16,991 | 10,531 |
TOTAL LIABILITIES | 1,037,643 | 726,374 |
EQUITY | ||
Common stock, $0.01 par value, 450,133,000 shares authorized, 41,225,784 and 29,408,138 shares issued and outstanding as of December 31, 2015 and 2014, respectively | 412 | 294 |
Additional paid-in capital | 670,275 | 324,917 |
Accumulated dividends in excess of earnings | (52,732) | (22,503) |
Total stockholders' equity | 617,955 | 302,708 |
Noncontrolling interests | 101,911 | 77,477 |
TOTAL EQUITY | 719,866 | 380,185 |
TOTAL LIABILITIES AND EQUITY | 1,757,509 | 1,106,559 |
Qualitytech, LP [Member] | ||
Real Estate Assets | ||
Land | 57,112 | 48,577 |
Buildings and improvements | 1,180,386 | 914,286 |
Less: Accumulated depreciation | (239,936) | (180,167) |
Total real estate assets | 997,562 | 782,696 |
Construction in progress | 345,655 | 214,719 |
Real Estate Assets, net | 1,343,217 | 997,415 |
Cash and cash equivalents | 8,804 | 10,788 |
Rents and other receivables, net | 28,233 | 15,579 |
Acquired intangibles, net | 115,702 | 18,000 |
Deferred costs, net | 40,212 | 37,058 |
Prepaid expenses | 6,502 | 3,079 |
Goodwill | 181,738 | |
Other assets, net | 33,101 | 24,640 |
TOTAL ASSETS | 1,757,509 | 1,106,559 |
LIABILITIES | ||
Unsecured credit facility | 524,002 | 239,838 |
Senior notes, net of discount | 297,976 | 297,729 |
Mortgage notes payable | 86,600 | |
Capital lease and lease financing obligations | 49,761 | 13,062 |
Accounts payable and accrued liabilities | 95,924 | 64,607 |
Dividends and distributions payable | 15,378 | 10,705 |
Advance rents, security deposits and other liabilities | 18,798 | 3,302 |
Deferred income taxes | 18,813 | |
Deferred income | 16,991 | 10,531 |
TOTAL LIABILITIES | 1,037,643 | 726,374 |
EQUITY | ||
Partners' capital | 719,866 | 380,185 |
TOTAL LIABILITIES AND EQUITY | $ 1,757,509 | $ 1,106,559 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 450,133,000 | 450,133,000 |
Common stock, shares issued | 41,225,784 | 29,408,138 |
Common stock, shares outstanding | 41,225,784 | 29,408,138 |
STATEMENTS OF OPERATIONS AND CO
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Oct. 14, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||||
Rental | $ 33,304 | $ 230,510 | $ 175,649 | ||
Recoveries from customers | 2,674 | 22,581 | 19,194 | ||
Cloud and managed services | 4,074 | 51,994 | 20,231 | ||
Other | 410 | 5,998 | 2,715 | ||
Total revenues | 40,462 | 311,083 | 217,789 | ||
Operating Expenses: | |||||
Property operating costs | 13,482 | 104,355 | 71,518 | ||
Real estate taxes and insurance | 1,016 | 5,869 | 5,116 | ||
Depreciation and amortization | 11,238 | 85,811 | 58,282 | ||
General and administrative | 8,457 | 67,783 | 45,283 | ||
Restructuring | 1,298 | ||||
Transaction and integration costs | 66 | 11,282 | 1,018 | ||
Total operating expenses | 34,259 | 275,100 | 182,515 | ||
Operating income | 6,203 | 35,983 | 35,274 | ||
Other income and expenses: | |||||
Interest income | 1 | 2 | 8 | ||
Interest expense | (2,049) | (21,289) | (15,308) | ||
Other (expense) income, net | (153) | (468) | (871) | ||
Income (loss) before taxes and loss on sale of real estate | 4,002 | 14,228 | 19,103 | ||
Tax benefit (expense) of taxable REIT subsidiaries | 10,065 | ||||
Loss on sale of real estate | (164) | ||||
Net income | 4,002 | $ (152) | 24,129 | 19,103 | |
Net income attributable to noncontrolling interests | (848) | (3,803) | (4,031) | ||
Net income attributable to Parent | 3,154 | 20,326 | 15,072 | ||
Unrealized gain on swap | 74 | ||||
Comprehensive income | $ 3,228 | $ 20,326 | $ 15,072 | ||
Net income per share attributable to common shares: | |||||
Net income per share attributable to common stockholders - basic | $ 0.11 | $ 0.54 | $ 0.52 | ||
Net income per share attributable to common stockholders - diluted | $ 0.11 | $ 0.53 | $ 0.51 | ||
Weighted average common shares outstanding: | |||||
Basic | 28,972,774 | 37,568,109 | 29,054,576 | ||
Diluted | 36,794,215 | 45,353,170 | 37,133,584 | ||
Historical Predecessor [Member] | |||||
Revenues: | |||||
Rental | 112,002 | ||||
Recoveries from customers | 10,424 | ||||
Cloud and managed services | 13,457 | ||||
Other | 1,542 | ||||
Total revenues | 137,425 | ||||
Operating Expenses: | |||||
Property operating costs | 47,268 | ||||
Real estate taxes and insurance | 3,476 | ||||
Depreciation and amortization | 36,120 | ||||
General and administrative | 30,726 | ||||
Transaction and integration costs | 52 | ||||
Total operating expenses | 117,642 | ||||
Operating income | 19,783 | ||||
Other income and expenses: | |||||
Interest income | 17 | ||||
Interest expense | (16,675) | ||||
Other (expense) income, net | (3,277) | ||||
Income (loss) before taxes and loss on sale of real estate | (152) | ||||
Net income | (152) | ||||
Net income attributable to Parent | (152) | ||||
Unrealized gain on swap | 220 | ||||
Comprehensive income | $ 68 | ||||
Qualitytech, LP [Member] | |||||
Revenues: | |||||
Rental | $ 230,510 | $ 175,649 | $ 145,306 | ||
Recoveries from customers | 22,581 | 19,194 | 13,098 | ||
Cloud and managed services | 51,994 | 20,231 | 17,531 | ||
Other | 5,998 | 2,715 | 1,952 | ||
Total revenues | 311,083 | 217,789 | 177,887 | ||
Operating Expenses: | |||||
Property operating costs | 104,355 | 71,518 | 60,750 | ||
Real estate taxes and insurance | 5,869 | 5,116 | 4,492 | ||
Depreciation and amortization | 85,811 | 58,282 | 47,358 | ||
General and administrative | 67,783 | 45,283 | 39,183 | ||
Restructuring | 1,298 | ||||
Transaction and integration costs | 11,282 | 1,018 | 118 | ||
Total operating expenses | 275,100 | 182,515 | 151,901 | ||
Operating income | 35,983 | 35,274 | 25,986 | ||
Other income and expenses: | |||||
Interest income | 2 | 8 | 18 | ||
Interest expense | (21,289) | (15,308) | (18,724) | ||
Other (expense) income, net | (468) | (871) | (3,430) | ||
Income (loss) before taxes and loss on sale of real estate | 14,228 | 19,103 | 3,850 | ||
Tax benefit (expense) of taxable REIT subsidiaries | 10,065 | ||||
Loss on sale of real estate | (164) | ||||
Net income | 24,129 | 19,103 | 3,850 | ||
Unrealized gain on swap | 294 | ||||
Comprehensive income | $ 24,129 | $ 19,103 | $ 4,144 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | Qualitytech, LP [Member]General Partner [Member] | Qualitytech, LP [Member]Limited Partner [Member] | Qualitytech, LP [Member] | Partnership Units [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Dividends in Excess of Earnings [Member] | Total stockholders' Equity [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance at Dec. 31, 2012 | $ 121,679 | $ 121,679 | $ 121,679 | $ 121,679 | |||||||
Beginning balance, shares at Dec. 31, 2012 | 1 | 22,173 | 22,174 | ||||||||
Equity-based compensation expense, net of equity awards repurchased | $ 1,369 | 1,369 | |||||||||
Member advances exchanged for LP units | $ 10,000 | 10,000 | |||||||||
Member advances exchanged for LP units, shares | 400 | ||||||||||
Partnership distributions | $ (7,633) | (7,633) | |||||||||
Other comprehensive gain (loss) | 220 | 220 | |||||||||
Net income | (152) | (152) | |||||||||
Ending balance at Oct. 14, 2013 | $ 125,483 | $ 125,483 | 125,483 | ||||||||
Ending balance, shares at Oct. 14, 2013 | 22,574 | ||||||||||
Beginning balance at Dec. 31, 2012 | $ 121,679 | 121,679 | $ 121,679 | 121,679 | |||||||
Beginning balance, shares at Dec. 31, 2012 | 1 | 22,173 | 22,174 | ||||||||
Net proceeds from IPO | $ 279,059 | 279,059 | |||||||||
Net proceeds from IPO, shares | 14,197 | ||||||||||
Equity-based compensation expense, net of equity awards repurchased | $ 1,947 | 1,947 | |||||||||
Member advances exchanged for LP units | $ 10,000 | 10,000 | |||||||||
Member advances exchanged for LP units, shares | 400 | ||||||||||
Partnership distributions | $ (9,645) | (9,645) | |||||||||
Other comprehensive gain (loss) | (233) | (233) | |||||||||
Dividend to shareholders | (6,953) | (6,953) | |||||||||
Net income | 3,850 | 3,850 | |||||||||
Ending balance at Dec. 31, 2013 | $ 289 | $ 318,834 | $ (357) | $ (3,799) | 314,967 | $ 84,737 | 399,704 | ||||
Ending balance at Dec. 31, 2013 | $ 399,704 | 399,704 | |||||||||
Ending balance, shares at Dec. 31, 2013 | 28,973 | ||||||||||
Ending balance, shares at Dec. 31, 2013 | 1 | 36,770 | |||||||||
Beginning balance at Oct. 14, 2013 | $ 125,483 | 125,483 | 125,483 | ||||||||
Beginning balance, shares at Oct. 14, 2013 | 22,574 | ||||||||||
Reclassify partners capital | $ (125,483) | $ 148 | 39,338 | (85,997) | 85,997 | ||||||
Reclassify partners capital, shares | (22,574) | 14,776 | |||||||||
Net proceeds from IPO | $ 141 | 278,918 | 279,059 | 279,059 | |||||||
Net proceeds from IPO, shares | 14,197 | ||||||||||
Equity-based compensation expense | 578 | 578 | 578 | ||||||||
Other comprehensive gain (loss) | (357) | (357) | (96) | (453) | |||||||
Dividend to shareholders | (6,953) | (6,953) | (6,953) | ||||||||
Distribution to noncontrolling interests | (2,012) | (2,012) | |||||||||
Net income | 3,154 | 3,154 | 848 | 4,002 | |||||||
Ending balance at Dec. 31, 2013 | $ 289 | 318,834 | (357) | (3,799) | 314,967 | 84,737 | 399,704 | ||||
Ending balance at Dec. 31, 2013 | $ 399,704 | 399,704 | |||||||||
Ending balance, shares at Dec. 31, 2013 | 28,973 | ||||||||||
Ending balance, shares at Dec. 31, 2013 | 1 | 36,770 | |||||||||
Issuance of shares through equity award plan | $ 5 | (5) | |||||||||
Issuance of shares through equity award plan, shares | 165 | 165 | |||||||||
Reclassification of noncontrolling interest upon conversion of partnership units to common stock | 2,811 | 2,811 | (2,811) | ||||||||
Reclassification of noncontrolling interest upon conversion of partnership units to common stock, shares | 270 | ||||||||||
Equity-based compensation expense | $ 4,153 | 4,153 | 3,277 | 3,277 | 876 | 4,153 | |||||
Other comprehensive gain (loss) | 453 | 453 | $ 357 | 357 | 96 | 453 | |||||
Dividend to shareholders | (33,776) | (33,776) | (33,776) | (33,776) | (33,776) | ||||||
Distribution to noncontrolling interests | (9,452) | (9,452) | |||||||||
Partnership distribution | (9,452) | (9,452) | |||||||||
Net income | 19,103 | 19,103 | 15,072 | 15,072 | 4,031 | 19,103 | |||||
Ending balance at Dec. 31, 2014 | $ 294 | 324,917 | (22,503) | 302,708 | 77,477 | 380,185 | |||||
Ending balance at Dec. 31, 2014 | $ 380,185 | 380,185 | |||||||||
Ending balance, shares at Dec. 31, 2014 | 29,408 | ||||||||||
Ending balance, shares at Dec. 31, 2014 | 1 | 36,935 | |||||||||
Issuance of shares through equity award plan | $ (644) | (644) | $ 3 | (3) | (644) | (644) | |||||
Issuance of shares through equity award plan, shares | 338 | 338 | |||||||||
Net proceeds from equity offering | $ 368,664 | 368,664 | $ 108 | 330,256 | 330,364 | 38,300 | 368,664 | ||||
Net proceeds from equity offering, shares | 10,750 | 10,750 | |||||||||
Reclassification of noncontrolling interest upon conversion of partnership units to common stock | $ 7 | 9,239 | 9,246 | (9,246) | |||||||
Reclassification of noncontrolling interest upon conversion of partnership units to common stock, shares | 730 | ||||||||||
Equity-based compensation expense | $ 6,964 | 6,964 | 5,866 | 5,866 | 1,098 | 6,964 | |||||
Dividend to shareholders | (50,555) | (50,555) | (50,555) | (50,555) | (50,555) | ||||||
Distribution to noncontrolling interests | (8,877) | (8,877) | |||||||||
Partnership distribution | (8,877) | (8,877) | |||||||||
Net income | 24,129 | 24,129 | 20,326 | 20,326 | 3,803 | 24,129 | |||||
Ending balance at Dec. 31, 2015 | $ 412 | $ 670,275 | $ (52,732) | $ 617,955 | $ 101,911 | $ 719,866 | |||||
Ending balance at Dec. 31, 2015 | $ 719,866 | $ 719,866 | |||||||||
Ending balance, shares at Dec. 31, 2015 | 41,226 | ||||||||||
Ending balance, shares at Dec. 31, 2015 | 1 | 48,023 |
STATEMENTS OF CASH FLOW (UNAUDI
STATEMENTS OF CASH FLOW (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Oct. 14, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flow from operating activities: | |||||
Net income | $ 4,002 | $ (152) | $ 24,129 | $ 19,103 | |
Adjustments to reconcile net income to net cash provided by operating activities | |||||
Depreciation and amortization | 10,636 | 83,488 | 55,327 | ||
Amortization of deferred loan costs | $ 496 | 3,181 | 2,673 | ||
Amortization of senior notes discount | 247 | 98 | |||
Equity-based compensation expense | $ 578 | 6,964 | 4,153 | ||
Bad debt expense | 371 | 1,323 | 600 | ||
Write off of deferred loan costs | $ 153 | 468 | 870 | ||
Deferred tax benefit | (10,065) | ||||
Loss on sale of property | 164 | ||||
Non-cash integration costs | 3,117 | ||||
Changes in operating assets and liabilities | |||||
Rents and other receivables, net | $ (2,419) | (1,138) | (1,745) | ||
Prepaid expenses | $ 678 | (2,182) | (1,266) | ||
Restricted cash | |||||
Other assets | $ (463) | (5,016) | (73) | ||
Accounts payable and accrued liabilities | 15,061 | 8,938 | (8,663) | ||
Advance rents, security deposits and other liabilities | 6 | (763) | 41 | ||
Deferred income | 536 | (3,597) | 2,639 | ||
Net cash provided by operating activities | $ 29,635 | 109,258 | 73,757 | ||
Cash flow from investing activities: | |||||
Proceeds from sale of property | 648 | ||||
Acquisitions, net of cash acquired | (292,685) | (91,064) | |||
Additions to property and equipment | $ (47,963) | (320,058) | (201,145) | ||
Cash used in investing activities | (47,963) | (612,095) | (292,209) | ||
Cash flow from financing activities: | |||||
Credit facility proceeds | $ 14,500 | 671,162 | 270,500 | ||
Senior Notes proceeds | 297,633 | ||||
Debt repayment | $ (278,000) | (386,998) | (290,000) | ||
Payment of deferred financing costs | $ (990) | (3,649) | (9,864) | ||
Payment of cash dividend | (45,892) | (32,198) | |||
Distribution to noncontrolling interest | (8,865) | (9,049) | |||
Partnership distributions | |||||
Repurchase of equity awards | |||||
Principal payments on capital lease obligation | $ (180) | (7,677) | (753) | ||
Mortgage principal debt repayments | (359) | (86,600) | (2,239) | ||
Equity proceeds, net of costs | 280,841 | 369,372 | |||
Net cash provided by financing activities | 15,812 | 500,853 | 224,030 | ||
Net increase (decrease) in cash and cash equivalents | (2,516) | (1,984) | 5,578 | ||
Cash and cash equivalents, beginning of period | 7,726 | 10,788 | 5,210 | ||
Cash and cash equivalents, end of period | 5,210 | 7,726 | 8,804 | 10,788 | $ 5,210 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||
Cash paid for interest (excluding deferred financing costs and amounts capitalized) | 1,995 | 18,027 | 4,950 | ||
Noncash investing and financing activities: | |||||
Accrued capital additions | $ 39,801 | 52,552 | 39,129 | ||
Accrued deferred financing costs | 1 | 2,858 | |||
Accrued equity issuance costs | $ 364 | 57 | |||
Capital lease and lease financing obligations assumed | 43,832 | ||||
Member advances exchanged for LP units | |||||
Historical Predecessor [Member] | |||||
Cash flow from operating activities: | |||||
Net income | (152) | ||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||
Depreciation and amortization | 34,624 | ||||
Amortization of deferred loan costs | 2,281 | ||||
Equity-based compensation expense | 1,382 | ||||
Bad debt expense | 174 | ||||
Write off of deferred loan costs | 2,031 | ||||
Changes in operating assets and liabilities | |||||
Rents and other receivables, net | (617) | ||||
Prepaid expenses | (1,464) | ||||
Restricted cash | 146 | ||||
Other assets | 486 | ||||
Accounts payable and accrued liabilities | (9,234) | ||||
Advance rents, security deposits and other liabilities | 244 | ||||
Deferred income | 610 | ||||
Net cash provided by operating activities | 30,511 | ||||
Cash flow from investing activities: | |||||
Acquisitions, net of cash acquired | (21,174) | ||||
Additions to property and equipment | (99,701) | ||||
Cash used in investing activities | (120,875) | ||||
Cash flow from financing activities: | |||||
Credit facility proceeds | 563,500 | ||||
Debt repayment | (456,994) | ||||
Payment of deferred financing costs | (4,483) | ||||
Partnership distributions | (7,633) | ||||
Repurchase of equity awards | (13) | ||||
Principal payments on capital lease obligation | (496) | ||||
Mortgage principal debt repayments | (2,057) | ||||
Equity proceeds, net of costs | (1,966) | ||||
Net cash provided by financing activities | 89,858 | ||||
Net increase (decrease) in cash and cash equivalents | (506) | ||||
Cash and cash equivalents, beginning of period | $ 7,726 | 8,232 | 8,232 | ||
Cash and cash equivalents, end of period | 7,726 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||
Cash paid for interest (excluding deferred financing costs and amounts capitalized) | 15,974 | ||||
Noncash investing and financing activities: | |||||
Accrued capital additions | 20,939 | ||||
Accrued deferred financing costs | 990 | ||||
Accrued equity issuance costs | 257 | ||||
Member advances exchanged for LP units | 10,000 | ||||
Qualitytech, LP [Member] | |||||
Cash flow from operating activities: | |||||
Net income | 24,129 | 19,103 | 3,850 | ||
Adjustments to reconcile net income to net cash provided by operating activities | |||||
Depreciation and amortization | 83,488 | 55,327 | 45,260 | ||
Amortization of deferred loan costs | 3,181 | 2,673 | 2,777 | ||
Amortization of senior notes discount | 247 | 98 | |||
Equity-based compensation expense | 6,964 | 4,153 | 1,960 | ||
Bad debt expense | 1,323 | 600 | 545 | ||
Write off of deferred loan costs | 468 | 870 | 2,184 | ||
Deferred tax benefit | (12,179) | ||||
Loss on sale of property | 164 | ||||
Non-cash integration costs | 3,117 | ||||
Changes in operating assets and liabilities | |||||
Rents and other receivables, net | (1,138) | (1,745) | (3,036) | ||
Prepaid expenses | (2,182) | (1,266) | (786) | ||
Restricted cash | 146 | ||||
Other assets | (5,016) | (73) | 23 | ||
Accounts payable and accrued liabilities | 11,052 | (8,663) | 5,827 | ||
Advance rents, security deposits and other liabilities | (763) | 41 | 250 | ||
Deferred income | (3,597) | 2,639 | 1,146 | ||
Net cash provided by operating activities | 109,258 | 73,757 | 60,146 | ||
Cash flow from investing activities: | |||||
Proceeds from sale of property | 648 | ||||
Acquisitions, net of cash acquired | (292,685) | (91,064) | (21,174) | ||
Additions to property and equipment | (320,058) | (201,145) | (147,664) | ||
Cash used in investing activities | (612,095) | (292,209) | (168,838) | ||
Cash flow from financing activities: | |||||
Credit facility proceeds | 671,162 | 270,500 | 578,000 | ||
Senior Notes proceeds | 297,633 | ||||
Debt repayment | (386,998) | (290,000) | (734,994) | ||
Payment of deferred financing costs | (3,649) | (9,864) | (5,473) | ||
Payment of cash dividend | (45,892) | (32,198) | |||
Partnership distributions | (8,865) | (9,049) | (7,633) | ||
Repurchase of equity awards | (13) | ||||
Principal payments on capital lease obligation | (7,677) | (753) | (676) | ||
Mortgage principal debt repayments | (86,600) | (2,239) | (2,416) | ||
Equity proceeds, net of costs | 369,372 | 278,875 | |||
Net cash provided by financing activities | 500,853 | 224,030 | 105,670 | ||
Net increase (decrease) in cash and cash equivalents | (1,984) | 5,578 | (3,022) | ||
Cash and cash equivalents, beginning of period | $ 8,232 | 10,788 | 5,210 | 8,232 | |
Cash and cash equivalents, end of period | $ 5,210 | 8,804 | 10,788 | 5,210 | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||
Cash paid for interest (excluding deferred financing costs and amounts capitalized) | 18,027 | 4,950 | 17,969 | ||
Noncash investing and financing activities: | |||||
Accrued capital additions | 53,151 | 39,129 | 60,740 | ||
Accrued deferred financing costs | 1 | $ 2,858 | 990 | ||
Accrued equity issuance costs | 57 | 621 | |||
Capital lease and lease financing obligations assumed | $ 43,832 | ||||
Member advances exchanged for LP units | $ 10,000 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2015 | |
Description of Business [Abstract] | |
Description of Business | 1. Description of Business QTS Realty Trust, Inc. (“QTS”) through its controlling interest in QualityTech, LP (the “Operating Partnership” and collectively with QTS and their subsidiaries, the “Company”) and the subsidiaries of the Operating Partnership, is engaged in the business of owning, acquiring, redeveloping and managing multi-tenant data centers. The Company’s portfolio consists of 24 wholly-owned and leased properties with data centers located throughout the United States, Canada, Europe and the Asia-Pacific region. QTS was formed as a Maryland corporation on May 17, 2013. On October 15, 2013, QTS completed its initial public offering of 14,087,500 shares of Class A common stock, $0.01 par value per share (the “IPO”), including shares issued pursuant to the underwriters’ option to purchase additional shares, which was exercised in full, and received net proceeds of approximately $279 million. 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. Prior to the IPO, QTS had no assets other than cash and deferred offering costs, and had not had any operations other than the issuance of 1,000 shares of common stock to Chad L. Williams in connection with its initial capitalization. The Operating Partnership is a Delaware limited partnership formed on August 5, 2009 and is QTS’ historical predecessor. Concurrently with the completion of the IPO, the Company consummated a series of transactions, including the merger of General Atlantic REIT, Inc. with the Company, pursuant to which it became the sole general partner and majority owner of QualityTech, LP, the Operating Partnership. QTS contributed the net proceeds received from the IPO to the Operating Partnership in exchange for partnership units therein. As of December 31, 2015 , QTS owned approximately 85.8% of the interests in the Operating Partnership. Substantially all of QTS’ assets are held by, and 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 affairs, subject to certain limited approval and voting rights of the limited partners. QTS’ board of directors manages the Company’s business and affairs. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. 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”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The accompanying financial statements are presented for both QTS Realty Trust, Inc. and QualityTech, LP. References to “QTS” mean QTS Realty Trust, Inc. and its controlled subsidiaries; and references to the “Operating Partnership” mean QualityTech, LP and its controlled subsidiaries. QTS is the sole general partner of the Operating Partnership, and its only material asset consists of its ownership interest in the Operating Partnership. Management operates QTS and the Operating Partnership as one business. The management of QTS consists of the same employees as the management of the Operating Partnership. QTS does not conduct business itself, other than acting as the sole general partner of the Operating Partnership and issuing public equity from time to time. QTS has not issued or guaranteed any indebtedness. Except for net proceeds from public equity issuances by QTS, which are contributed to the Operating Partnership in exchange for units of limited partnership interest of the Operating Partnership, the Operating Partnership generates all remaining capital required by the business through its operations, the direct or indirect incurrence of indebtedness, and the issuance of partnership units. Therefore, as general partner with control of the Operating Partnership, QTS consolidates the Operating Partnership for financial reporting purposes. The Company believes, therefore, that providing one set of notes for the financial statements of QTS and the Operating Partnership provides the following benefits: · enhances investors’ understanding of QTS and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business; · eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the disclosure applies to both QTS and the Operating Partnership; and · creates time and cost efficiencies through the preparation of one set of notes instead of two separate sets of notes. In addition, in light of these combined notes, the Company believes it is important for investors to understand the few differences between QTS and the Operating Partnership in the context of how QTS and the Operating Partnership operate as a consolidated company. With respect to balance sheets, the presentation of stockholders’ equity and partners’ capital are the main areas of difference between the consolidated balance sheets of QTS and those of the Operating Partnership. On the Operating Partnership’s consolidated balance sheets, partners’ capital includes partnership units that are owned by QTS and other partners. On QTS’ consolidated balance sheets, stockholders’ equity includes common stock, additional paid in capital, accumulated other comprehensive income (loss) and accumulated dividends in excess of earnings. The remaining equity reflected on QTS’s consolidated balance sheet is the portion of net assets that are retained by partners other than QTS, referred to as noncontrolling interests. With respect to statements of operations, the primary difference in QTS' Statements of Operations and Comprehensive Income is that for net income (loss), QTS retains its proportionate share of the net income (loss) based on its ownership of the Operating Partnership, with the remaining balance being retained by the Operating Partnership. These combined notes refer to actions or holdings as being actions or holdings of “the Company.” Although the Operating Partnership is generally the entity that enters into contracts, holds assets and issues debt, management believes that these general references to “the Company” in this context is appropriate because the business is one enterprise operated through the Operating Partnership. As discussed above, QTS owns no operating assets and has no operations independent of the Operating Partnership and its subsidiaries. Also, the Operating Partnership owns no operating assets and has no operations independent of its subsidiaries. Obligations under the 5.875% Senior Notes due 2022 and the unsecured credit facility, both discussed in Note 5, are fully, unconditionally, and jointly and severally guaranteed by the Operating Partnership’s existing subsidiaries, other than: 1) 2470 Satellite Boulevard, LLC, a newly formed subsidiary in December 2015 that acquired an office building in Duluth, Georgia and has de minimis operations, and 2) QTS Finance Corporation, the co-issuer of the 5.875% Senior Notes due 2022. As such, condensed consolidating financial information for the guarantors is not being presented in the notes to the consolidated financial statements. The indenture governing the 5.875% Senior Notes due 2022 restricts the ability of the Operating Partnership to make distributions to QTS, subject to certain exceptions, including distributions required in order for QTS to maintain its status as a real estate investment trust under the Internal Revenue Code of 1986, as amended. The consolidated financial statements of QTS Realty Trust, Inc. for the period from October 15, 2013 through December 31, 2015 include the accounts of QTS Realty Trust, Inc. and its majority owned subsidiaries. This includes the operating results of the Operating Partnership for all periods presented. 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. Principles of Consolidation – The consolidated financial statements of QTS Realty Trust, Inc. include the accounts of QTS Realty Trust, Inc. and its majority-owned subsidiaries. The consolidated financial statements of QualityTech, LP include the accounts of QualityTech, LP and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in the financial statements. 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 year ended December 31, 2015, depreciation expense related to real estate assets and non-real estate assets was $55.2 million and $9.8 million, respectively, for a total of $65.0 million. For the year ended December 31, 2014, depreciation expense related to real estate assets and non-real estate assets was $39.0 million and $6.4 million, respectively, for a total of $45.4 million. For the year ended December 31, 2013, depreciation expense related to real estate assets and non-real estate assets was $31.5 million and $5.2 million, respectively, for a total of $36.7 million. The Company capitalizes certain 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 costs) begins when development efforts commence and ends when the asset is ready for its intended use. Capitalization of such costs, excluding interest, aggregated to $10.8 million, $10.6 million and $8.5 million for the years ended December 31, 2015, 2014 and 2013 respectively. Interest is capitalized during the period of development by first applying the Company’s actual borrowing rate on the related asset and second, to the extent necessary, by applying the Company’s weighted average effective borrowing rate to the actual development and other costs expended during the construction period. Interest is capitalized until the property is ready for its intended use. Interest costs capitalized totaled $ 9.8 million, $6.5 million and $4.1 million for the years ended December 31, 2015, 2014 and 2013, respectively. Acquisition of Real Estate – Acquisitions of real estate and other entities are either accounted for as asset acquisitions or business combinations depending on facts and circumstances. Purchase accounting is applied to the assets and liabilities related to all real estate investments acquired in accordance with the accounting requirements of ASC 805, Business Combinations , which requires the recording of net assets of acquired businesses at fair value. The fair value of the consideration transferred is allocated to the acquired tangible assets, consisting primarily of land, building and improvements, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, value of in-place leases, value of customer relationships, trade names, software intangibles and capital leases. The excess of the fair value of liabilities assumed, common stock issued and cash paid over the fair value of identifiable assets acquired is allocated to goodwill, which is not amortized by the Company. In developing estimates of fair value of acquired assets and assumed liabilities, management analyzed 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. Acquired in-place leases are amortized as amortization expense on a straight-line basis over the remaining life of the underlying leases. Amortization of acquired in place lease costs totaled $1.7 million, $2.2 million and $2.6 million for the years ended December 31, 2015, 2014 and 2013, respectively. Acquired customer relationships are amortized as amortization expense on a straight-line basis over the expected life of the customer relationship. Amortization of acquired customer relationships totaled $5.0 million, $1.3 million and $1.5 million for the years ended December 31, 2015, 2014 and 2013, respectively. This amortization expense is accounted for as real estate amortization expense. Other acquired intangible assets, which includes platform, above or below market leases, and trade name intangibles, are amortized on a straight-line basis over their respective expected lives. Platform and trade name intangibles are amortized as amortization expense. Platform amortization expense was $1.7 million for the year ended December 31, 2015. Trade name amortization expense was $0.6 million for the year ended December 31, 2015. Above or below market leases are amortized as a reduction to or increase to rental expense over the remaining lease terms, which totaled $0.1 million for the year ended December 31, 2015. There was no amortization related to platform , trade name , and above or below market lease intangibles for the years ended December 31, 2014 and 2013. The expense associated with above and below market leases and trade name intangibles is accounted for as real estate expense, whereas the expense associated with the amortization of platform intangibles is accounted for as non-real estate expense. See Note 3 for discussion of the preliminary purchase accounting allocation for the acquisition of Carpathia Hosting, Inc. (“Carpathia”) on June 16, 2015. Impairment of Long-Lived Assets and Goodwill – The Company reviews its long-lived assets 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 generally 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 exceeds the value of the undiscounted cash flows, the fair value of the asset 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. The Company wrote off $3.1 million related to the Company’s decision to transfer its Federal Cloud customers to Carpathia’s existing Federal Cloud platform. This write off is included in transaction and integration costs on the Company’s consolidated statements of operations and comprehensive income. No impairment losses were recorded for the years ended December 31, 2015, 2014 and 2013 . The fair value of goodwill is the consideration transferred which is not allocable to identifiable intangible and tangible assets. Goodwill is subject to at least an annual assessment for impairment. As a result of the Carpathia acquisition, the Company recognized approximately $18 2 million in goodwill. In connection with the goodwill impairment evaluation that the Company performed on October 1, 2015, the Company determined qualitatively that there were no indicators of impairment, thus it did not perform a quantitative analysis. Cash and Cash Equivalents – The Company considers 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. The Company’s 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. The Company mitigates this risk by depositing a majority of its funds with several major financial institutions. The Company also has not experienced any losses and, therefore, does not believe that the risk is significant. Deferred Costs – Deferred costs, net, on the Company’s balance sheets include both financing costs and leasing costs. Deferred financing costs represent fees and other costs incurred in connection with obtaining debt and are amortized over the term of the loan and are included in interest expense. Amortization of the deferred financing costs was $3.2 million, $2.7 million and $2.8 million for the years ended December 31, 2015, 2014 and 2013, respectively. During the year ended December 31, 2015, the Company wrote off unamortized financing costs of $0.5 million to the income statement in connection with the repayment of the Atlanta Metro equipment loan in June 2015 and the amendment of its unsecured credit facility in October 2015, both of which are discussed in more detail in Note 5. During the year ended December 31, 2014, the Company wrote off unamortized financing costs of $0.9 million primarily in connection with paying down $75 million of its unsecured credit facility, as well as modifying the unsecured credit facility in December 2014. In addition, the Company also made modifications to its Richmond credit facility which resulted in the write off of certain deferred financing costs. Deferred financing costs, net of accumulated amortization are as follows: December 31, December 31, (dollars in thousands) 2015 2014 Deferred financing costs $ 21,333 $ 18,152 Accumulated amortization (4,899) (1,683) Deferred financing costs, net $ 16,434 $ 16,469 Deferred leasing costs consist of external fees and internal costs incurred in the successful negotiations of leases and are deferred and amortized over the terms of the related leases on a straight-line basis. If an applicable lease terminates prior to the expiration of its initial term, the carrying amount of the costs are written off to amortization expense. Amortization of deferred leasing costs totaled $11.8 million, $9.4 million and $6.5 million for the years ended December 31, 2015, 2014 and 2013, respectively. Deferred leasing costs, net of accumulated amortization are as follows (excluding $2.8 million, net of amortization, related to a leasing arrangement at the Company’s Princeton facility in 2014): December 31, December 31, (dollars in thousands) 2015 2014 Deferred leasing costs $ 33,458 $ 26,799 Accumulated amortization (12,476) (9,378) Deferred leasing costs, net $ 20,982 $ 17,421 Advance Rents and Security Deposits – Advance rents, typically prepayment of the following month’s rent, consist of payments received from customers prior to the time they are earned and are recognized as revenue in subsequent periods when earned. Security deposits are collected from customers at the lease origination and are generally refunded to customers upon lease expiration. Deferred Income – Deferred income generally results from non-refundable charges paid by the customer at lease inception to prepare their space for occupancy. The Company records 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 $17.0 million, $10.5 million and $7.9 million as of December 31, 2015, 2014 and 2013, respectively. Additionally, $6.0 million, $4.7 million and $4.7 million of deferred income was amortized into revenue for the years ended December 31, 2015, 2014 and 2013, respectively. Interest Rate Derivative Instruments – The Company utilizes derivatives to manage its interest rate exposure. During February 2012, the Company entered into interest rate swaps with a notional amount of $150 million which were cash flow hedges and qualified for hedge accounting. For these hedges, the effective portion of the change in fair value was recognized through other comprehensive income or loss. Amounts were reclassified out of other comprehensive income (loss) as the hedged item was recognized in earnings, either for ineffectiveness or for amounts paid relating to the hedge. The Company reflected all changes in the fair value of the swaps in other comprehensive income (loss) during the year ended December 31, 2014, as there was no ineffectiveness recorded in that period. The Company had no interest rate swaps outstanding at December 31, 2015 and 2014. Equity-based Compensation – All equity-based compensation is measured at fair value on the grant date or date of modification, as applicable, and recognized in earnings over the requisite service period. Depending upon the settlement terms of the awards, all or a portion of the fair value of equity-based awards may be presented as a liability or as equity in the consolidated balance sheets. Equity-based compensation costs are measured based upon their estimated fair value on the date of grant or modification. Equity-based compensation expense net of forfeited and repurchased awards was $7.0 million, $4.2 million and $2. 0 million for the years ended December 31, 2015, 2014 and 2013, respectively. Rental Revenue – The Company, as a lessor, has retained substantially all of the risks and benefits of ownership and accounts for its leases as operating leases. 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 sheets included in rents and other receivables, net was $9.1 million and $4.0 million as of December 31, 2015 and December 31, 2014 , respectively. Rental revenue also includes amortization of set-up fees which are amortized over the term of the respective lease as discussed above. Cloud and Managed Services Revenue – The Company may provide both its cloud product and use of its managed services to its customers on an individual or combined basis. Service fee revenue is recognized as the revenue is earned, which generally coincides with the services being provided. Allowance for Uncollectible Accounts Receivable – Rents receivable are recognized when due and are carried at cost, less an allowance for doubtful accounts. The Company records a provision for losses on rents receivable equal to the estimated uncollectible accounts, which is based on management’s historical experience and a review of the current status of the Company’s receivables. As necessary, the Company also establishes an appropriate allowance for doubtful accounts for receivables arising from the straight-lining of rents. The aggregate allowance for doubtful accounts was $5.1 million and $3.7 million as of December 31, 2015 and 2014, respectively. Capital Leases – The Company evaluates leased real estate to determine whether the lease should be classified as a capital or operating lease in accordance with U.S GAAP. The Company periodically enters into capital leases for certain equipment. In addition, through its acquisition of Carpathia on June 16, 2015, the Company is now party to capital leases for property and equipment, as well as financing obligations related to a sale-leaseback transaction. The outstanding liabilities for the capital leases were $26.9 million and $13.1 million as of December 31, 2015 and 2014, respectively. The outstanding liabilities for the lease financing obligations were $ 22.8 million as of December 31, 2015 . The net book value of the assets associated with these leases was approximately $51.0 million and $7.4 million as of December 31, 2015 and 2014, respectively. Depreciation related to the associated assets is included in depreciation and amortization expense in the Statements of Operations and Comprehensive Income. See Note 3 for further discussion of the acquisition of Carpathia and Note 5 for further discussion of capital leases and lease financing obligations. Recoveries from Customers – Certain customer leases contain provisions under which the customers reimburse the Company for a portion of the property’s real estate taxes, insurance and other operating expenses, which include certain power and cooling-related charges. The reimbursements are included in revenue as recoveries from customers in the Statements of Operations and Comprehensive Income in the period the applicable expenditures are incurred. Certain customer leases are structured to provide a fixed monthly billing amount that includes an estimate of various operating expenses, with all revenue from such leases included in rental revenues. Segment Information – The Company manages its business as one operating segment and thus one reportable segment consisting of a portfolio of investments in data centers located primarily in the United States with others in Canada, Europe and the Asia-Pacific region. Customer Concentrations – As of December 31, 2015 , one of the Company’s customers represented 10.5% of its total monthly rental revenue. No other customers exceeded 4% of total monthly rental revenue. As of December 31, 2015 , two of the Company’s customers exceeded 5% of total accounts receivable. In aggregate, these two customers accounted for 34% of total accounts receivable. Both of these customers individually exceeded 10% of total accounts receivable. Income Taxes – The Company elected for two of its existing subsidiaries to be taxed as a taxable REIT subsidiary pursuant to the REIT rules of the U.S. Internal Revenue Code. For the taxable REIT subsidiaries, income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. As of December 31, 2014, one of the taxable REIT subsidiaries’ deferred tax assets were primarily the result of U.S. net operating loss carryforwards. A valuation allowance was recorded against its gross deferred tax asset balance as of December 31, 2014. As a result of the acquisition of Carpathia, the Company determined that it is more likely than not that pre-existing deferred tax assets will be realized by the combined entity, and the valuation allowance was eliminated. The change in the valuation allowance resulting from the change in circumstances is included in income, recognized in deferred income tax benefit in the year ended December 31, 2015. In addition to the deferred income tax benefit recognized in connection with the elimination of the valuation allowance, a deferred tax benefit was recognized in the year ended December 31, 2015 in connection with recorded operating losses. The taxable REIT subsidiary consolidated group has a net deferred tax liability position primarily due to fixed assets and the customer-based intangibles acquired as part of the Carpathia acquisition. Temporary differences and carry forwards which give rise to the deferred tax assets and liabilities are as follows: For the Year Ended December 31, 2015 2014 2013 Deferred tax liabilities Property and equipment $ (16,032) $ (5,784) $ (4,905) Goodwill (407) - - Intangibles (23,896) - - Other (2,350) (1,427) (873) Gross deferred tax liabilities (42,685) (7,211) (5,778) Deferred tax assets Net operating loss carryforwards 14,107 9,137 5,861 Deferred revenue and setup charges 3,747 868 583 Leases 3,097 - - Credits 630 - - Other 2,291 601 699 Gross deferred tax assets 23,872 10,606 7,143 Net deferred tax assets (18,813) 3,395 1,365 Valuation allowance - (3,395) (1,365) Net deferred $ (18,813) $ - $ - The taxable REIT subsidiaries currently have $33.0 million of net operating loss carryforwards related to federal income taxes that expire in 1 4 -20 years. The taxable REIT subsidiaries also have $32.3 million of net operating loss carryforwards relating to state income taxes that expire in 4 -20 years. 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. The Company’s effective tax rates were 34.8% , 0% and 0% for the years ended December 31, 2015, 2014 and 2013, respectively. The increase in the effective tax rate in 2015 is primarily due to the elimination of the valuation allowance as a result of the Carpathia acquisition, as well as recorded operating losses in the current year. The differences between total income tax expense or benefit and the amount computed by applying the statutory income tax rate to income before provision for income taxes with respect to the TRS activity were as follows: For the Year Ended December 31, 2015 2014 2013 TRS Statutory rate of 34% applied to pre-tax income (loss) $ (6,683) $ (1,793) $ (441) Permanent differences, net 281 128 1,061 State income (tax) benefit, net of federal benefit (268) (365) (113) Valuation allowance (decrease) increase (3,395) 2,030 (507) Total tax expense (benefit) $ (10,065) $ - $ - Effective tax rate 34.75% 0.00% 0.00% As of December 31, 2015 and 2014, the Company had no uncertain tax positions. If the Company incurs any interest or penalties on tax liabilities from significant uncertain tax positions, those items will be classified as interest expense and general and administrative expense, respectively, in the Statements of Operations and Comprehensive Income. For the years ended December 31, 2015, 2014 and 2013, the Company had no such interest or penalties. The Company is not currently under examination by the Internal Revenue Service. 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 the Company has 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. The Company’s 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 the Company’s previous interest rate swaps matured on September 28, 2014, there were no financial assets or liabilities measured at fair value on a recurring basis on the consolidated balance sheets as of December 31, 2015 and 2014. The Company’s purchase price allocation of Carpathia is a fair value estimate that utilized Level 3 inputs and is measured on a non-recurring basis. See Note 3 for further detail. New Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which supersedes the current revenue recognition requirements in ASC 606, Revenue Recognition. Under this new guidance, entities should recognize revenues to depict the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. This ASU also requires enhanced disclosures. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted for annual and interim periods beginning after December 15, 2016. Retrospective and modified retrospective application is allowed. The Company is currently assessing the impact of this amendment on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs . The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Acquisitions [Abstract] | |
Acquisitions | 3. Acquisitions (All references to square footage, acres and megawatts are unaudited) Carpathia Acquisition On June 16, 2015, the Company completed the acquisition of 100% of the outstanding stock of Carpathia Hosting, Inc. (“Carpathia”), a Virginia-based colocation, cloud and managed services provider for approximately $ 366.7 million (based on the preliminary assessment of the fair value of assets acquired and liabilities assumed). Upon completion of this acquisition, the Company assumed all of the assets and liabilities of Carpathia Acquisition, Inc. Carpathia Acquisition, Inc. and its subsidiaries, including Carpathia, became indirect, wholly-owned subsidiaries of the Company. Carpathia is a provider of colocation, hybrid cloud and Infrastructure-as-a-Service (IaaS) servicing enterprise customers and federal agencies, with a customer base of approximately 230 customers as of June 16, 2015. Carpathia utilizes eight domestic data centers located in Dulles, Virginia; Phoenix, Arizona; San Jose, California; Harrisonburg, Virginia and Ashburn, Virginia; and five international data centers located in Toronto, Canada; Amsterdam, Netherlands; London, United Kingdom; Hong Kong and Sydney, Australia. The Company accounted for this acquisition in accordance with ASC 805, Business Combinations , as a business combination. The preliminary purchase price allocation was based on an assessment of the fair value of the assets acquired and liabilities assumed, and excludes acquisition-related costs which in accordance with ASC 805 were expensed as incurred. The Company is valuing the assets acquired and liabilities assumed using Level 3 inputs in valuation techniques which are consistent with those used throughout the industry . The following table summarizes the consideration for the Carpathia acquisition and the preliminary allocation of the fair value of assets acquired and liabilities assumed at the acquisition date (in thousands). This allocation is subject to change pending the final valuation of these assets and liabilities: Adjusted Carpathia Allocation as of December 31, 2015 Original Allocation Reported as of June 30, 2015 Adjusted Fair Value Land $ 1,130 $ 1,130 $ - Buildings and improvements 78,898 79,372 (474) Construction in progress 12,127 12,127 - Acquired intangibles 93,400 89,847 3,553 Net working capital 3,610 2,569 1,041 Total identifiable assets acquired 189,165 185,045 4,120 Capital lease and lease financing obligations 43,832 43,832 - Deferred income taxes 29,934 19,766 10,168 Acquired above market lease 2,453 - 2,453 Total liabilities assumed 76,219 63,598 12,621 Net identifiable assets acquired 112,946 121,447 (8,501) Goodwill 181,738 173,237 8,501 Net assets acquired $ 294,684 $ 294,684 $ - Goodwill recognized in the transaction relates primarily to anticipated operating synergies, Carpathia’s in-place workforce and access to Carpathia’s broader potential customer base. For tax purposes, QTS acquired goodwill with a tax basis of $16.6 million, which will be deductible in future periods. Based on the preliminary purchase price allocation, amortization expenses relative to the intangible assets acquired are expected to be approximately $11.0 million, $11.0 million, $8.8 million, $6.7 million and $6.7 million for the years ended December 31, 2016 through December 31, 2020, respectively. The following table represents the pro forma condensed consolidated statements of operations of the combined entities for the years ended December 31, 2015, 2014 and 2013 (in thousands): (Unaudited) Pro Forma Condensed Consolidated Statements of Operations Year Ended December 31, 2015 2014 2013 Revenue $ 352,529 $ 299,906 $ 250,338 Net income $ 28,109 $ 12,919 $ (9,592) These amounts have been calculated after applying the Company’s accounting policies, and give effect to the Carpathia acquisition. The purchase price allocation for this acquisition has been prepared on a preliminary basis. Accordingly, the purchase accounting adjustments made in connection with the development of the unaudited pro forma consolidated statements of operations are preliminary and subject to change. The unaudited pro forma condensed consolidated financial information is for comparative purposes only and not necessarily indicative of what actual results of operations of the Company would have been had the transactions noted above been consummated on January 1, 2013, nor does it purport to represent the results of operations for future periods. Revenue and net income generated by Carpathia entities subsequent to the Company’s acquisition from June 16, 2015 to December 31, 2015 were $49.2 million and $2.3 million, respectively. Duluth, Georgia Acquisition On December 30, 2015, the Company purchased an office building in Duluth, Georgia for approximately $3.8 million, of which the Company allocated $1.9 million to land and $1.9 million to buildings and improvements on the consolidated balance sheet. |
Real Estate Assets and Construc
Real Estate Assets and Construction in Progress | 12 Months Ended |
Dec. 31, 2015 | |
Real Estate Assets and Construction in Progress [Abstract] | |
Real Estate Assets and Construction in Progress | 4. Real Estate Assets and Construction in Progress The following is a summary of properties owned or leased by the Company as of December 31, 2015 and 2014 (in thousands): As of December 31, 2015 : Property Location Land Buildings and Improvements Construction in Progress Total Cost Owned Properties Suwanee, Georgia (Atlanta-Suwanee) $ 3,521 $ 150,028 $ 15,330 $ 168,879 Atlanta, Georgia (Atlanta-Metro) 15,397 406,190 41,835 463,422 Santa Clara, California* - 94,437 1,379 95,816 Richmond, Virginia 2,180 208,654 85,771 296,605 Sacramento, California 1,481 61,462 73 63,016 Princeton, New Jersey 20,700 32,708 422 53,830 Dallas-Fort Worth, Texas 8,590 71,783 120,331 200,704 Chicago, Illinois - - 70,749 70,749 Miami, Florida 1,777 30,554 144 32,475 Lenexa, Kansas 437 3,511 - 3,948 Duluth, Georgia Office Building 1,899 1,920 - 3,819 55,982 1,061,247 336,034 1,453,263 Leased Properties Leased facilities acquired in 2015 *** 1,130 89,989 7,196 98,315 Jersey City, New Jersey - 28,228 2,421 30,649 Overland Park, Kansas - 922 ** 4 926 1,130 119,139 9,621 129,890 $ 57,112 $ 1,180,386 $ 345,655 $ 1,583,153 * Owned facility subject to long-term ground sublease. ** This does not include the portion of the business that is used for QTS office space or other real estate not used by customers. *** Includes 13 facilities. All facilities are leased, including those subject to capital leases. As of December 31, 2014 : Property Location Land Buildings and Improvements Construction in Progress Total Cost Owned Properties Suwanee, Georgia (Atlanta-Suwanee) $ 3,521 $ 138,991 $ 6,345 $ 148,857 Atlanta, Georgia (Atlanta-Metro) 15,397 356,122 22,693 394,212 Santa Clara, California* - 90,332 650 90,982 Richmond, Virginia 2,180 127,080 71,794 201,054 Sacramento, California 1,481 60,094 278 61,853 Princeton, New Jersey 17,976 35,951 90 54,017 Dallas-Fort Worth, Texas 5,808 44,053 89,982 139,843 Chicago, Illinois - - 21,786 21,786 Miami, Florida 1,777 28,786 129 30,692 Lenexa, Kansas 437 3,298 25 3,760 Wichita, Kansas - 1,409 - 1,409 48,577 886,116 213,772 1,148,465 Leased Properties Jersey City, New Jersey - 27,318 920 28,238 Overland Park, Kansas - 852 ** 27 879 - 28,170 947 29,117 $ 48,577 $ 914,286 $ 214,719 $ 1,177,582 * Owned facility subject to long-term ground sublease ** This does not include the portion of the business that is used for QTS office space or other real estate not used by customers. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt [Abstract] | |
Debt | 5. Debt Below is a listing of the Company’s outstanding debt, including capital leases and lease financing obligations, as of December 31, 2015 and 2014 (in thousands): Weighted Average Coupon Interest Rate at December 31, December 31, December 31, 2015 Maturities 2015 2014 Unsecured Credit Facility Revolving Credit Facility 1.82% December 17, 2019 $ 224,002 $ 139,838 Term Loan I 1.78% December 17, 2020 150,000 100,000 Term Loan II 1.92% April 27, 2021 150,000 - Senior Notes, net of discount 5.88% August 1, 2022 297,976 297,729 Richmond Credit Facility N/A N/A - 70,000 Atlanta-Metro Equipment Loan N/A N/A - 16,600 Capital Lease and Lease Financing Obligations 3.35% 2016 - 2025 49,761 13,062 Total 3.31% $ 871,739 $ 637,229 Credit Facilities, Senior Notes and Mortgage Notes Payable (a) Unsecured Credit Facility – On May 1, 2013 , the Company entered into a $575 million unsecured credit facility comprised of a five -year $225 million term loan and a four -year $350 million revolving credit facility with a one year extension, subject to satisfaction of certain conditions, and had the ability to expand the total credit facility by an additional $100 million subject to certain conditions set forth in the credit agreement. In July 2014 the Company’s term loan was reduced by $75 million to $150 million in connection with the issuance of the Senior Notes. On December 17, 2014, the Company amended and restated its unsecured credit facility to provide for a $650 million unsecured credit facility comprised of a five -year $100 million term loan maturing December 17, 2019 and a four -year $550 million revolving credit facility maturing December 17, 2018 , with the option to extend one year until December 17, 2019 , subject to the satisfaction of certain conditions. The lenders under the unsecured credit facility could issue up to $30 million in letters of credit subject to the satisfaction of certain conditions. In October 2015, the Company further amended its unsecured credit facility, increasing the total capacity by $250 million and extending the term. At the same time, the Company terminated its secured credit facility relating to the Richmond data center. The amended unsecured credit facility has a total capacity of $900 million and includes a $150 million term loan which matures on December 17, 2020 , another $150 million term loan which matures on April 27, 2021 , and a $600 million revolving credit facility which matures on December 17, 2019 , with a one year extension option. Amounts outstanding under the amended unsecured credit facility bear interest at a variable rate equal to, at our election, LIBOR or a base rate, plus a spread that will vary depending upon our leverage ratio. For revolving credit loans, the spread ranges from 1.55% to 2.15% for LIBOR loans and 0.55% to 1.15% for base rate loans. For term loans, the spread ranges from 1.50% to 2.10% for LIBOR loans and 0.50% to 1.10% for base rate loans. The amended unsecured credit facility also includes a $200 million accordion feature. Under the amended unsecured credit facility, the capacity may be increased from the current capacity of $900 million to $1.1 billion subject to certain conditions set forth in the credit agreement, including the consent of the administrative agent and obtaining necessary commitments. As of December 31, 2015, the weighted average interest rate for amounts outstanding under the unsecured credit facility was 1.84% . The Company is also required to pay a commitment fee to the lenders assessed on the unused portion of the unsecured revolving credit facility. At the Company’s election, the Company can prepay amounts outstanding under the unsecured credit facility, in whole or in part, without penalty or premium. The Company’s ability to borrow under the amended unsecured credit facility is subject to ongoing compliance with a number of customary affirmative and negative covenants, including limitations on liens, mergers, consolidations, investments, distributions, asset sales and affiliate transactions, as well as the following financial covenants: (i) the outstanding principal balance of the loans and letter of credit liabilities cannot exceed the unencumbered asset pool availability (as defined in the third amended and restated credit agreement), (ii) a maximum leverage ratio of total indebtedness to gross asset value (as defined in the third amended and restated credit agreement) not in excess of 60% , (iii) a minimum fixed charge coverage ratio (defined as the ratio of consolidated EBITDA, subject to certain adjustments, to consolidated fixed charges) for the prior two most recently-ended calendar quarters of not less than 1.70 to 1.00, (iv) tangible net worth of at least $958 million plus 80% of the sum of net equity offering proceeds and the value of interests in the Operating Partnership issued upon contribution of assets to the Operating Partnership or its subsidiaries, (v) unhedged variable rate debt not greater than 35% of gross asset value and (vi) a maximum distribution payout ratio of the greater of (a) 95% of the Company’s “funds from operations” (as defined in the agreement) and (b) the amount required for QTS to qualify as a REIT under the Code. The interest rate applied to the outstanding balance of the unsecured credit facility decreases incrementally for every 5% below the maximum leverage ratio. The availability under the amended unsecured revolving credit facility is the lesser of (i) $600 million, (ii) 60% of unencumbered asset pool capitalized value, or (iii) the amount resulting in an unencumbered asset pool debt yield of 14% . In the case of clauses (ii), (iii) and (iv) of the preceding sentence, the amount available under the unsecured revolving credit facility is adjusted to take into account any other unsecured debt and certain capitalized leases. The availability of funds under the amended unsecured credit facility depends on compliance with the covenants. As of December 31, 2015, the Company had outstanding $524.0 million of indebtedness under the unsecured credit facility, consisting of $224.0 million of outstanding borrowings under the unsecured revolving credit facility and $300.0 million outstanding term loan indebtedness. In connection with the unsecured credit facility, as of December 31, 2015 , the Company had an additional $2.0 million letter of credit outstanding. (b) Senior Notes – On July 23, 2014 , the Operating Partnership and QTS Finance Corporation, a subsidiary of the Operating Partnership formed solely for the purpose of facilitating the offering of the notes described below (collectively, the “Issuers”), issued $300 million aggregate principal amount of 5.875% Senior Notes due 2022 (the “Senior Notes”). The Senior Notes have an interest rate of 5.875% per annum, were issued at a price equal to 99.211% of their face value and mature on August 1, 2022 . The proceeds from the offering were used to repay amounts outstanding under the unsecured credit facility, including $75 million outstanding under the term loan. The Senior Notes are unconditionally guaranteed, jointly and severally, on a senior unsecured basis by all of the Operating Partnership’s existing subsidiaries (other than foreign subsidiaries and receivables entities) and future subsidiaries that guarantee any indebtedness of QTS Realty Trust, Inc., the Issuers or any other subsidiary guarantor. The Company will not initially guarantee the Senior Notes and will not be required to guarantee the Senior Notes except under certain circumstances. The offering was conducted pursuant to Rule 144A of the Securities Act of 1933, as amended, and the Senior Notes were issued pursuant to an indenture, dated as of July 23, 2014, among the Operating Partnership, QTS Finance Corporation, the Company, the guarantors named therein, and Deutsche Bank Trust Company Americas, as trustee (the “Indenture”). On March 23, 2015, the SEC declared effective the Operating Partnership and QTS Finance Corporation’s registration statement on Form S-4 pursuant to which the issuers exchanged the originally issued Senior Notes for $300 million of 5.875% Senior Notes due 2022 (the “Exchange Notes”) that are registered under the Securities Act of 1933, as amended. The exchange offer was completed on April 23, 2015, and all outstanding originally issued Senior Notes were tendered. The Exchange Notes did not provide the Company with any additional proceeds and satisfied its obligations under a registration rights agreement entered into in connection with the issuance of the Senior Notes. (c) Richmond Credit Facility – In December 2012, the Company entered into a credit facility secured by the Company’s Richmond data center (the “Richmond Credit Facility”). The proceeds from the Richmond Credit Facility were required to be used solely to finance the development of the Richmond property into a data center and to repay indebtedness under the unsecured credit facility. The Richmond Credit Facility required the Company to comply with covenants similar to the Unsecured Credit Facility. As amended on June 30, 2014, the Richmond Credit Facility had a stated maturity of June 30, 2019 , and a capacity of $120 million with an accordion feature to provide for total borrowing capacity of up to $200 million. The interest rate for LIBOR loans ranged from LIBOR plus 2.10% to 2.85% , with the rate determined by the overall leverage ratio as defined in the agreement. As discussed above, the Company terminated the Richmond Credit Facility in conjunction with the October 2015 amendment of the unsecured credit facility. (d) Atlanta-Metro Equipment Loan – On April 9, 2010, the Company entered into a $25 million loan to finance equipment related to an expansion project at the Company’s Atlanta-Metro data center (the “Atlanta-Metro Equipment Loan”). The loan originally required monthly interest-only payments and subsequently required monthly interest and principal payments. The loan bore interest at 6.85% and was scheduled to mature on June 1, 2020 . This debt was repaid in June 2015 when its prepayment penalties expired. The annual remaining principal payment requirements as of December 31, 2015 per the contractual maturities and excluding extension options, capital leases and lease financing obligations, are as follows (in thousands): 2016 $ - 2017 - 2018 - 2019 224,002 2020 150,000 Thereafter 450,000 Total $ 824,002 As of December 31, 2015 , the Company was in compliance with all of its covenants. Capital Leases The Company has historically entered into capital leases for certain equipment. In addition, through its acquisition of Carpathia on June 16, 2015, the Company acquired capital leases of both equipment and certain properties. Total outstanding liabilities for capital leases were $ 26.9 million as of December 31, 2015 , of which $16.6 million were assumed through the Carpathia acquisition, all of which was related to the lease of real property. Carpathia had entered into capital lease arrangements for datacenter space under two lease agreements expiring in 2018 and 2019 at its Harrisonburg, Virginia and Ashburn, Virginia locations. Total recurring monthly payments range from approximately $0.2 million to $0.5 million during the terms of the leases, in addition to payments made for utilities. Depreciation related to the associated assets for the capital leases is included in depreciation and amortization expense in the Statements of Operations and Comprehensive Income. Lease Financing Obligations Through the acquisition of Carpathia, the Company acquired lease financing obligations totaling $ 22.8 million at December 31, 2015 , of which $20.6 million related to a sale-leaseback transaction where Carpathia has continuing involvement. On December 23, 2011, Carpathia sold the shell of a building and the associated land to an unrelated third party. Carpathia leases the property back and is a party to an agreement with the same third party to construct a new building on the adjoining property for use as a data center. Carpathia is primarily responsible for financing the improvements and outfitting the building with the necessary equipment. The third party leases back the new building in stages to Carpathia as the various stages are completed. In accordance with ASC 840-40, Leases , Carpathia has continuing involvement with the related leased assets; therefore, the Company will continue to account for the existing building shell and the associated land as fixed assets and will capitalize the construction costs of the new building. The financing obligation related to the building and equipment was $18.9 million at December 31, 2015 . In addition, due to Carpathia’s continuing involvement, it was required to defer a gain on the sale of the assets. The deferred gain was $1.6 million at December 31, 2015 , and is also included in lease financing obligations. The financing obligation is reduced as rental payments are made on the existing building, which payments started in January 2012. Rental payments, which include amounts attributable to both principal and interest, increased to approximately $0.2 million per month in March 2013, which is when the newly constructed building was inhabited by Carpathia. Depreciation expense on the related asset is included in depreciation and amortization expense in the Statements of Operations and Comprehensive Income. The Company, through its acquisition of Carpathia, also has a lease financing agreement in connection with a $4.8 million tenant improvement allowance on one of its data center lease agreements. The financing requires monthly payments of principal and interest of less than $0.1 million through February 2019 . The outstanding balance on the financing agreement was $2.3 million as of December 31, 2015 . Depreciation expense on the related leasehold improvements is included in depreciation and amortization expense in the Statements of Operations and Comprehensive Income. The following table summarizes the Company’s combined future payment obligations, excluding interest, as of December 31, 2015 , on the capital leases and lease financing obligations above (in thousands): 2016 $ 12,558 2017 12,388 2018 8,804 2019 2,461 2020 2,190 Thereafter 11,360 Total $ 49,761 |
Interest Rate Derivative Instru
Interest Rate Derivative Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Interest Rate Derivative Instruments [Abstract] | |
Interest Rate Derivative Instruments | 6. Interest Rate Derivative Instruments The Company entered into interest rate swap agreements with a notional amount of $150 million on February 8, 2012 , which were designated as cash flow hedges for hedge accounting, and matured on September 28, 2014 . For derivative instruments that are accounted for as hedges, the change in fair value for the effective portions of qualifying hedges is recorded through other comprehensive income (loss). The total amount of unrealized gains recorded in other comprehensive income (loss) for the year ended December 31, 2013 was $0.3 million, with no unrealized gains or losses recorded for the years ended December 31, 2014 and 2015. Interest expense related to payments on interest rate swaps was $0.5 million for each of the years ended December 31, 2014 and 2013, with no interest expense recorded for the year ended December 31, 2015 . As the interest rate swaps matured in September 2014, there were no amounts outstanding on the consolidated balance sheets relating to interest rate swaps as of December 31, 2015 and 2014. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies The Company is subject to various routine legal proceedings and other matters in the ordinary course of business. One of the Company’s subsidiaries, Carpathia Hosting, LLC (“Carpathia”), was named as a defendant in a lawsuit filed in state court in New York. Carpathia’s customer, Portal Healthcare Solutions (“Portal Ascend”) allegedly had a security breach between November 2012 and March 2013. Portal Ascend has agreed to indemnify Carpathia in this litigation and has provided legal counsel to defend Carpathia. The litigation is in the earliest stages, thus this litigation is neither probable nor reasonably estimable. |
Partners' Capital, Equity and I
Partners' Capital, Equity and Incentive Compensation Plans | 12 Months Ended |
Dec. 31, 2015 | |
Partners' Capital, Equity and Incentive Compensation Plans [Abstract] | |
Partners' Capital, Equity and Incentive Compensation Plans | 8. 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 December 31, 2015 , the Operating Partnership had three classes of limited partnership units outstanding: Class A units of limited partnership interest (“Class A units”), Class RS LTIP units of limited partnership interest (“Class RS units”) and Class O LTIP units of limited partnership units (“Class O units”). The Class A units are redeemable at any time on or after one year following the later of November 1, 2013 (which is the beginning of the first full calendar month following the completion of the IPO) or the date of initial issuance. The Company may in its sole discretion elect to assume and satisfy the fair value redemption amount with cash or its shares. Class RS units or Class O units were issued upon grants made under the QualityTech, LP 2010 Equity Incentive Plan (the “2010 Equity Incentive Plan”). Class RS units and Class O units may be subject to vesting and are pari passu with Class A units of the Operating Partnership. Each Class RS unit and Class O unit is convertible into Class A units by the Operating Partnership at any time or by the holder at any time following full vesting (if such unit is subject to vesting) based on formulas contained in the partnership agreement. In addition, upon certain circumstances set forth in the partnership agreement, vested Class RS units automatically convert into Class A units of the Operating Partnership. QTS Realty Trust, Inc. In connection with its 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 the Company’s 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”), which authorized 1.75 million shares of Class A common stock to be issued under the plan, including options to purchase Class A common stock, restricted Class A common stock, Class O units, and Class RS units. In March 2015, the Board of Directors approved an amendment to the 2013 Equity Incentive Plan to, among other things, increase the number of shares available for issuance under the plan by 3,000,000 , subject to stockholder approval. The stockholders approved the amendment at the annual meeting of stockholders held on May 4, 2015, increasing the total number of shares available for issuance under the 2013 Equity Incentive Plan to 4,750,000 . The following is a summary of award activity under the 2010 Equity Incentive Plan and 2013 Equity Incentive Plan and related information for the years ended December 31, 2015, 2014 and 2013 : 2010 Equity Incentive Plan 2013 Equity Incentive Plan Number of Class O units Weighted average exercise price Weighted average fair value Number of Class RS units Weighted average grant date value Options Weighted average exercise price Weighted average fair value Restricted Stock Weighted average grant date value Outstanding at January 1, 2013 1,471,943 $23.09 $2.84 178,750 $24.20 — $ — $ — — $ — Granted 224,244 25.00 10.62 — — 370,410 21.00 3.50 108,629 21.00 Exercised — — — — — — — — — — Released from restriction — — — (5,000) 20.00 — — — — — Cancelled/Expired (73,440) — 5.31 — — (2,500) — 3.52 — — Outstanding at December 31, 2013 1,622,747 $23.44 $3.84 173,750 $24.31 367,910 $21.00 $3.50 108,629 $21.00 Granted — — — — — 238,039 25.59 4.96 172,102 32.66 Exercised/Vested (15,750) 20.71 4.75 — — (3,000) 21.00 3.52 (25,786) 21.00 Released from restriction (1) — — — (99,125) 24.94 — — — — — Cancelled/Expired (88,280) 23.01 5.23 — — (18,000) 21.00 3.52 (8,160) 21.00 Outstanding at December 31, 2014 1,518,717 $23.49 $3.75 74,625 $23.49 584,949 $22.87 $4.10 246,785 $29.13 Granted — — — — — 317,497 36.16 8.03 230,271 36.71 Exercised/Vested (2) (222,499) 22.02 4.18 — — (23,157) 21.30 3.63 (54,400) 28.37 Released from restriction (1) — — — (34,750) 25.00 — — — — — Cancelled/Expired (3) (3,319) 20.00 3.92 — — (11,407) 21.00 3.52 (27,748) 28.33 Outstanding at December 31, 2015 1,292,899 $23.76 $3.68 39,875 $22.18 867,882 $27.80 $5.56 394,908 $33.82 (1) This represents Class RS units that upon vesting have converted to Operating Partnership units. (2) This represents 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. (3) Includes 26,298 of restricted Class A common stock surrendered by certain employees to satisfy their statutory minimum federal and state tax obligations associated with the vesting of restricted common stock . The assumptions and fair values for Class O units, restricted stock and options to purchase shares of Class A common stock granted for the years ended December 31, 2015, 2014 and 2013 are included in the following table on a per unit basis. Class O units and options to purchase shares of Class A common stock were valued using the Black-Scholes model. 2015 2014 2013 Fair value of Class O Units granted $ - $ - $10.26 - $10.92 Fair value of restricted stock granted $35.81 - $37.69 $25.51 - $35.51 $ 21.00 Fair value of options granted $8.00 - $8.77 $4.94 - $5.98 $3.45 - $3.52 Expected term (years) 5.5 -6.1 5.5 -6.1 5.5 -7.0 Expected volatility 33% 33% 32% -40% Expected dividend yield 3.40 -3.57% 4.02 - 4.55 % 5.5% Expected risk-free interest rates 1.67 -1.94% 1.7 -1.9% 1.4% -1.8% The following tables summarize information about awards outstanding as of December 31, 2015 . Operating Partnership Awards Outstanding Exercise prices Awards outstanding Weighted average remaining vesting period (years) Class RS Units $ - 39,875 0 Class O Units $ 20.00 -25.00 1,292,899 1 Total Operating Partnership awards outstanding 1,332,774 QTS Realty Trust, Inc. Awards Outstanding Exercise prices Awards outstanding Weighted average remaining vesting period (years) Restricted stock $ - 394,908 3 Options to purchase Class A common stock $ 21.00 -37.69 867,882 1 Total QTS Realty Trust, Inc. awards outstanding 1,262,790 All nonvested LTIP unit awards are valued as of the grant date and generally vest ratably over a defined service period. Certain nonvested LTIP unit awards vest on the earlier of achievement by the Company of various performance goals or specified dates in 2015 and 2016. As of December 31, 2015 there were 0.5 million, 0.4 million and 0.4 million nonvested Class O units, restricted Class A common stock and options to purchase Class A common stock outstanding, respectively. As of December 31, 2015 , there was an immaterial amount of Class RS units outstanding. As of December 31, 2015 the Company had $14.7 million of unrecognized equity-based compensation expense which will be recognized over the remaining vesting period of up to 4 years. The total intrinsic value of the awards outstanding at December 31, 2015 was $60.3 million. Dividends and Distributions The following tables present quarterly cash dividends and distributions paid to QTS’ common stockholders and the Operating Partnership’s unit holders for the years ended December 31, 2015 and 2014: Year Ended December 31, 2015 Record Date Payment Date Per Common Share and Per Unit Rate Aggregate Dividend/Distribution Amount (in millions) September 18, 2015 October 6, 2015 $ 0.32 $ 15.3 June 19, 2015 July 8, 2015 0.32 15.3 March 20, 2015 April 7, 2015 0.32 13.4 December 19, 2014 January 7, 2015 0.29 10.7 $ 1.25 $ 54.7 Year Ended December 31, 2014 Record Date Payment Date Per Common Share and Per Unit Rate Aggregate Dividend/Distribution Amount (in millions) September 19, 2014 October 7, 2014 $ 0.29 $ 10.5 June 20, 2014 July 8, 2014 0.29 10.9 March 20, 2014 April 8, 2014 0.29 10.8 December 20, 2013 January 7, 2014 0.24 * 9.0 $ 1.11 $ 41.2 * The per common share and per unit rate is prorated. It covers the period beginning October 15, 2013 (the closing date of the IPO) through December 31, 2013 and is based on a full quarter distribution of $0.29 per common share and per unit. Additionally, on January 6, 2016 , the Company paid its regular quarterly cash dividend of $0.32 per common share and per unit in the Operating Partnership to stockholders and unit holders of record as of the close of business on December 17, 2015 . Equity Issuances On March 2, 2015 , the Company issued 5,000,000 shares of QTS’ Class A common stock and GA QTS Interholdco, LLC, a selling stockholder and an affiliate of General Atlantic LLC, sold 4,350,000 shares of QTS’ Class A common stock at a price of $34.75 per share in an underwritten public offering. The selling stockholder granted the underwriters a 30-day option to purchase an aggregate of up to an additional 1,402,500 shares of QTS’ Class A common stock at the public offering price, which the underwriters exercised. The Company used the net proceeds of approximately $166.0 million to repay amounts outstanding under its unsecured revolving credit facility. The Company did not receive any proceeds from the offering of shares by the selling stockholder. On June 5, 2015 , the Company issued 5,750,000 shares of QTS’ Class A common stock and GA QTS Interholdco, LLC, a selling stockholder, sold 1,250,000 shares of QTS’ Class A common stock at a price of $37.00 per share in an underwritten public offering. The selling stockholder granted the underwriters a 30-day option to purchase an aggregate of up to an additional 1,050,000 shares of QTS’ Class A common stock at the public offering price, which the underwriters exercised. The Company used the net proceeds of approximately $203.4 million to fund a portion of the cash consideration payable by the Company in the Carpathia acquisition, and prior to such use, it used a portion of the net proceeds to repay amounts outstanding under its unsecured revolving credit facility and to pay off its Atlanta-Metro Equipment Loan. The Company did not receive any proceeds from the offering of shares by the selling stockholder. On August 14, 2015 , GA QTS Interholdco, LLC, a selling stockholder, sold 2,400,000 shares of QTS’ Class A common stock at a price of $41.00 per share in an underwritten public offering. The selling stockholder granted the underwriter a 30-day option to purchase an aggregate of up to an additional 360,000 shares of QTS’ Class A common stock at a price of $41.00 per share, of which the underwriters partially exercised the option with respect to 261,000 shares. The Company did not receive any proceeds from the offering of shares by the selling stockholder. On November 30, 2015 , GA QTS Interholdco, LLC, a selling stockholder, sold 2,175,000 shares of QTS’ Class A common stock at a price of $41.625 per share in an underwritten public offering. The selling stockholder granted the underwriter a 30-day option to purchase an aggregate of up to an additional 326,250 shares of QTS’ Class A common stock at a price of $41.625 per share, which the underwriter exercised in full. The Company did not receive any proceeds from the offering of shares by the selling stockholder. QTS Realty Trust, Inc. Employee Stock Purchase Plan In June 2015, the Company established the QTS Realty Trust, Inc. Employee Stock Purchase Plan (the “Plan”) to give eligible employees the opportunity to purchase, through payroll deductions, shares of the Company’s Class A common stock in the open market by an independent broker selected by the Company’s Board of Directors (the “Board”) or the plan’s administrator. Eligible employees include employees of the Company and its majority-owned subsidiaries (excluding executives) who have been employed for at least thirty days and who perform at least thirty hours of service per week for the Company. The Plan became effective July 1, 2015 and is administered by the Board or by a committee of one or more persons appointed by the Board. The Company has reserved 250,000 shares for purchase under the Plan and has also agreed to pay the brokerage commissions and fees associated with a Plan participant's purchase of shares. An eligible employee may deduct a minimum of $40 per month and a maximum of $2,000 per month towards the purchase of shares. On June 17, 2015, the Company filed a registration statement on Form S-8 to register the 250,000 shares of the Company’s Class A common stock related to the Plan. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 9. Related Party Transactions The Company periodically executes transactions with entities affiliated with its Chairman and Chief Executive Officer. Such transactions include automobile, furniture and equipment purchases as well as building operating lease payments and receipts, and reimbursement for the use of a private aircraft service by the Company’s officers and directors. The transactions which occurred during the years ended December 31, 2015, 2014 and 2013 are outlined below (in thousands): December 31, (dollars in thousands) 2015 2014 2013 Tax, utility, insurance and other reimbursement $ 589 $ 692 $ 336 Rent expense 1,014 1,026 977 Capital assets acquired 261 266 625 Total $ 1,864 $ 1,984 $ 1,938 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefit Plan [Abstract] | |
Employee Benefit Plan | 10. Employee Benefit Plan The Company sponsors a defined contribution 401(k) retirement plan covering all eligible employees. Qualified employees may elect to contribute to our 401(k) Plan on a pre-tax basis. The maximum amount of employee contribution is subject only to statutory limitations. Beginning in 2005 the Company made contributions at a rate of 25% of the first 4% of employee compensation contributed. Starting on January 1, 2014, the Company began making contributions at a rate of 50% on an additional 2% of contributions made by employees, up to 6% . As a result, the Company was matching 25% of the first 4% of employee contributions and 50% of employee contributions between 4% and 6% during 2014. Starting on January 1, 2015, the Company revised its contribution structure, and during 2015 was matching 50% of the first 6% of contributions made by employees. The Company contributed $1.3 million, $0.6 million and $0.3 million to the 401(k) Plan for the years ended December 31, 2015, 2014 and 2013 , respectively. |
Noncontrolling Interest
Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2015 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | 11. Noncontrolling Interest Concurrently with the completion of the IPO, QTS 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. Commencing at any time beginning November 1, 2014, at the election of the holders of the noncontrolling interest, the Class A units are redeemable for cash or, at the election of the Company, common stock of the Company on a one -for-one basis. During the year ended December 31, 2015, approximately 830,000 Class A units were redeemed for the Company’s Class A common stock. As a result, the noncontrolling ownership interest of QualityTech, LP, after taking into account the Class A units redeemed, the grant of equity awards and the issuance of 5,000,000 and 5,750,000 shares of common stock in March and June 2015, respectively, was 14.2% at December 31, 2015 . |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings per Share [Abstract] | |
Earnings per Share | 12. Earnings per share of QTS Realty Trust, Inc. 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 (loss) per share for the effects of potentially dilutive common shares. The computation of basic and diluted net income per share is as follows (in thousands, except per share data): Year Ended For the period October 15, 2013 December 31, through 2015 2014 December 31, 2013 Numerator: Net income available to common stockholders - basic $ 20,326 $ 15,072 $ 3,154 Effect of net income attributable to noncontrolling interests 3,803 4,031 848 Net income available to common stockholders - diluted $ 24,129 $ 19,103 $ 4,002 Denominator: Weighted average shares outstanding - basic 37,568 29,055 28,973 Effect of Class A and Class RS partnership units * 7,029 7,770 7,797 Effect of Class O units and options to purchase Class A common stock on an "as if" converted basis * 756 309 24 Weighted average shares outstanding - diluted 45,353 37,134 36,794 Net income per share attributable to common stockholders - basic $ 0.54 $ 0.52 $ 0.11 Net income per share attributable to common stockholders - diluted $ 0.53 $ 0.51 $ 0.11 * The Class A units, Class RS units and Class O units represent limited partnership interests in the Operating Partnership, and are described in more detail in Note 8. The computation of diluted net income per share for the period ended December 31, 2013 does not include 1,113,169 Class O units with an exercise price of $25.00 as their inclusion would have been antidilutive for that period. No securities were antidilutive for the years ended December 31, 2014 and 2015, and as such, no securities were excluded from the computation of diluted net income per share for those periods. |
Operating Leases, as Lessee
Operating Leases, as Lessee | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Operating Leases, as Lessee | 13. Operating Leases, as Lessee The Company leases and/or licenses several data center facilities and related equipment, its corporate headquarters and additional office space. Many of the data center facilities that the Company leases were acquired in 2015 through its acquisition of Carpathia. In addition, the Company has entered into a long-term ground sublease for its Santa Clara property through October 2052 . Rent expense for the aforementioned leases was $14.6 million, $5.9 million and $5.8 million for the years ended December 31, 2015, 2014 and 2013 , respectively, and is classified in property operating costs and general and administrative expenses in the accompanying Statements of Operations and Comprehensive Income. The Company recorded no capitalized rent for the years ended December 31, 2015, 2014 and 2013 . The future non-cancellable minimum rental payments required under operating leases and/or licenses at December 31, 2015 are as follows (in thousands): Year Ending December 31, 2016 $ 12,211 2017 10,570 2018 9,886 2019 8,327 2020 8,062 Thereafter 79,469 Total $ 128,525 |
Customer Leases, as Lessor
Customer Leases, as Lessor | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Customer Leases, as Lessor | 14. Customer Leases, as Lessor Future minimum lease payments to be received under non-cancelable operating customer leases (exclusive of recoveries of operating costs from customers) are as follows for the years ending December 31 (in thousands): 2016 $ 283,060 2017 212,656 2018 153,193 2019 102,661 2020 87,978 Thereafter 217,415 Total $ 1,056,963 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 15. Fair Value of Financial Instruments ASC Topic 825 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 the Company 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. Credit facilities, Senior Notes and mortgage notes payable: The fair value of the Company’s floating rate mortgage loans was estimated using Level 2 “significant other observable inputs” such as available market information based on borrowing rates that the Company believes it could obtain with similar terms and maturities. At December 31, 2015 , there were no mortgage notes payable outstanding on the consolidated balance sheet. The Company’s unsecured credit facility 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 the Company’s Senior Notes was estimated using Level 2 “significant other observable inputs,” primarily based on quoted market prices for the same or similar issuances. At December 31, 2015 , the fair value of the Senior Notes was approximately $303.9 million. Other debt instruments: The fair value of the Company’s other debt instruments (including capital leases and lease financing obligations) were estimated in the same manner as the unsecured credit facility and mortgage notes payable 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. |
Quarterly Financial Information
Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information [Abstract] | |
Quarterly Financial Information | 16. Quarterly Financial Information (unaudited) The tables below reflect the selected quarterly information for the years ended December 31, 2015 and 2014 for QTS (in thousands except share data): Three Months Ended December 31, September 30, June 30, March 31, 2015 Revenues $ 92,690 $ 88,890 $ 68,117 $ 61,386 Operating income 7,243 11,095 7,266 10,379 Net income 5,334 8,238 5,520 5,037 Net income attributable to common shares 4,603 7,009 4,632 4,082 Net income per share attributable to common shares - basic 0.11 0.17 0.13 0.13 Net income per share attributable to common shares - diluted 0.11 0.17 0.12 0.13 2014 Revenues $ 59,563 $ 57,945 $ 51,338 $ 48,943 Operating income 11,682 9,913 6,266 7,413 Net income 5,848 4,006 3,921 5,328 Net income attributable to common shares 4,627 3,157 3,090 4,198 Net income per share attributable to common shares - basic 0.16 0.11 0.11 0.14 Net income per share attributable to common shares - diluted 0.16 0.11 0.11 0.14 The table below reflects the selected quarterly information for the years ended December 31, 2015 and 2014 for the Operating Partnership (in thousands): Three Months Ended December 31, September 30, June 30, March 31, 2015 Revenues $ 92,690 $ 88,890 $ 68,117 $ 61,386 Operating income 7,243 11,095 7,266 10,379 Net income 5,334 8,238 5,520 5,037 2014 Revenues $ 59,563 $ 57,945 $ 51,338 $ 48,943 Operating income 11,682 9,913 6,266 7,413 Net income 5,848 4,006 3,921 5,328 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. Subsequent Events On January 6, 2016 , the Company paid its regular quarterly cash dividend of $0.32 per common share and per unit in the Operating Partnership to stockholders and unit holders of record as of the close of business on December 17, 2015 . On February 22, 2016 , the Company announced that its Board of Directors authorized payment of a regular quarterly cash dividend of $0.36 per common share and per unit in the Operating Partnership, payable on April 5, 2016 , to stockholders and unit holders of record as of the close of business on March 18, 2016 . |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Schedule II - Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | QTS REALTY TRUST, INC. QUALITYTECH, LP CONSOLIDATED FINANCIAL STATEMENTS SCHEDULE II – VALUTATION AND QUALIFYING ACCOUNTS December 31, 2015 Year Ended December 31, Balance at beginning of period Charge to expenses Additions/ (Deductions) Balance at end of period (dollars in thousands) Allowance for doubtful accounts 2015 $ 3,748 $ 1,323 $ (8) $ 5,063 2014 945 600 2,203 3,748 2013 456 545 (56) 945 Valuation allowance for deferred tax assets 2015 $ 3,395 $ - $ (3,395) $ - 2014 1,365 - 2,030 3,395 2013 1,871 - (506) 1,365 |
Schedule III - Real Estate Inve
Schedule III - Real Estate Investments | 12 Months Ended |
Dec. 31, 2015 | |
Schedule III - Real Estate Iinvestments [Abstract] | |
Schedule III - Real Estate Iinvestments | QTS REALTY TRUST, INC. QUALITYTECH, LP CONSOLIDATED FINANCIAL STATEMENTS SCHEDULE III – REAL ESTATE INVESTMENTS December 31, 2015 As of December 31, 2015 (dollars in thousands) Initial Costs Costs Capitalized Subsequent to Acquisition Gross Carrying Amount Property Location Land Buildings and Improvements Construction in Progress Land Buildings and Improvements Construction in Progress Land Buildings and Improvements Construction in Progress Accumulated Depreciation and Amortization Date of Acquisition Owned Properties Suwanee, Georgia $ 1,395 $ 29,802 $ - $ 2,126 $ 120,226 $ 15,330 $ 3,521 $ 150,028 $ 15,330 $ (50,038) 9/1/2005 Atlanta, Georgia (Metro) 12,647 35,473 - 2,749 370,717 41,835 15,396 406,190 41,835 (95,856) 10/3/2006 Santa Clara, California - 15,838 - - 78,599 1,379 - 94,437 1,379 (28,524) 11/1/2007 Richmond, Virginia 2,000 11,200 - 180 197,454 85,771 2,180 208,654 85,771 (23,918) 3/20/2010 Sacramento, California 1,481 52,753 - - 8,709 73 1,481 61,462 73 (4,956) 12/21/2012 Princeton, New Jersey 17,976 35,865 - 2,724 (3,157) 422 20,700 32,708 422 (1,284) 6/30/2014 Dallas-Fort Worth, Texas - 5,808 - 8,590 65,975 120,331 8,590 71,783 120,331 (4,468) 2/8/2013 Chicago, Illinois - - 17,764 - - 52,985 - - 70,749 - 7/8/2014 Miami, Florida 1,777 6,955 - - 23,599 144 1,777 30,554 144 (8,101) 3/6/2008 Lenexa, Kansas 400 3,100 - 37 411 - 437 3,511 - (108) 6/3/2011 Duluth, Georgia Office Building 1,900 1,920 - - - - 1,900 1,920 - - 12/30/2015 $ 39,575 $ 198,714 $ 17,764 $ 16,407 $ 862,533 $ 318,270 $ 55,982 $ 1,061,247 $ 336,034 $ (217,253) Leased Properties Leased facilities acquired in 2015 1,130 78,897 12,127 - 11,092 (4,931) 1,130 89,989 7,196 (8,758) 6/16/2015 Jersey City, New Jersey - 1,985 - - 26,243 2,421 - 28,228 2,421 (13,273) 11/1/2006 Overland Park, Kansas - - - - 922 4 - 922 4 (652) 1,130 80,882 12,127 - 38,257 (2,506) 1,130 119,139 9,621 (22,683) $ 40,705 $ 279,596 $ 29,891 $ 16,407 $ 900,790 $ 315,764 $ 57,112 $ 1,180,386 $ 345,655 $ (239,936) The following table reconciles the historical cost and accumulated depreciation for the years ended December 31, 2015, 2014 and 2013 (in thousands): Years Ended December 31, 2015 2014 2013 Property Balance, beginning of period $ 1,177,582 $ 905,735 $ 734,828 Disposals (1,790) (54) - Additions (acquisitions and improvements) 407,361 271,901 170,907 Balance, end of period $ 1,583,153 $ 1,177,582 $ 905,735 Accumulated depreciation Balance, beginning of period $ (180,167) $ (137,725) $ (102,900) Disposals 626 39 - Additions (depreciation and amortization expense) (60,395) (42,481) (34,825) Balance, end of period $ (239,936) $ (180,167) $ (137,725) |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant 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”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The accompanying financial statements are presented for both QTS Realty Trust, Inc. and QualityTech, LP. References to “QTS” mean QTS Realty Trust, Inc. and its controlled subsidiaries; and references to the “Operating Partnership” mean QualityTech, LP and its controlled subsidiaries. QTS is the sole general partner of the Operating Partnership, and its only material asset consists of its ownership interest in the Operating Partnership. Management operates QTS and the Operating Partnership as one business. The management of QTS consists of the same employees as the management of the Operating Partnership. QTS does not conduct business itself, other than acting as the sole general partner of the Operating Partnership and issuing public equity from time to time. QTS has not issued or guaranteed any indebtedness. Except for net proceeds from public equity issuances by QTS, which are contributed to the Operating Partnership in exchange for units of limited partnership interest of the Operating Partnership, the Operating Partnership generates all remaining capital required by the business through its operations, the direct or indirect incurrence of indebtedness, and the issuance of partnership units. Therefore, as general partner with control of the Operating Partnership, QTS consolidates the Operating Partnership for financial reporting purposes. The Company believes, therefore, that providing one set of notes for the financial statements of QTS and the Operating Partnership provides the following benefits: · enhances investors’ understanding of QTS and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business; · eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the disclosure applies to both QTS and the Operating Partnership; and · creates time and cost efficiencies through the preparation of one set of notes instead of two separate sets of notes. In addition, in light of these combined notes, the Company believes it is important for investors to understand the few differences between QTS and the Operating Partnership in the context of how QTS and the Operating Partnership operate as a consolidated company. With respect to balance sheets, the presentation of stockholders’ equity and partners’ capital are the main areas of difference between the consolidated balance sheets of QTS and those of the Operating Partnership. On the Operating Partnership’s consolidated balance sheets, partners’ capital includes partnership units that are owned by QTS and other partners. On QTS’ consolidated balance sheets, stockholders’ equity includes common stock, additional paid in capital, accumulated other comprehensive income (loss) and accumulated dividends in excess of earnings. The remaining equity reflected on QTS’s consolidated balance sheet is the portion of net assets that are retained by partners other than QTS, referred to as noncontrolling interests. With respect to statements of operations, the primary difference in QTS' Statements of Operations and Comprehensive Income is that for net income (loss), QTS retains its proportionate share of the net income (loss) based on its ownership of the Operating Partnership, with the remaining balance being retained by the Operating Partnership. These combined notes refer to actions or holdings as being actions or holdings of “the Company.” Although the Operating Partnership is generally the entity that enters into contracts, holds assets and issues debt, management believes that these general references to “the Company” in this context is appropriate because the business is one enterprise operated through the Operating Partnership. As discussed above, QTS owns no operating assets and has no operations independent of the Operating Partnership and its subsidiaries. Also, the Operating Partnership owns no operating assets and has no operations independent of its subsidiaries. Obligations under the 5.875% Senior Notes due 2022 and the unsecured credit facility, both discussed in Note 5, are fully, unconditionally, and jointly and severally guaranteed by the Operating Partnership’s existing subsidiaries, other than: 1) 2470 Satellite Boulevard, LLC, a newly formed subsidiary in December 2015 that acquired an office building in Duluth, Georgia and has de minimis operations, and 2) QTS Finance Corporation, the co-issuer of the 5.875% Senior Notes due 2022. As such, condensed consolidating financial information for the guarantors is not being presented in the notes to the consolidated financial statements. The indenture governing the 5.875% Senior Notes due 2022 restricts the ability of the Operating Partnership to make distributions to QTS, subject to certain exceptions, including distributions required in order for QTS to maintain its status as a real estate investment trust under the Internal Revenue Code of 1986, as amended. The consolidated financial statements of QTS Realty Trust, Inc. for the period from October 15, 2013 through December 31, 2015 include the accounts of QTS Realty Trust, Inc. and its majority owned subsidiaries. This includes the operating results of the Operating Partnership for all periods presented. |
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. |
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 majority-owned subsidiaries. The consolidated financial statements of QualityTech, LP include the accounts of QualityTech, LP and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in the financial statements. |
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 year ended December 31, 2015, depreciation expense related to real estate assets and non-real estate assets was $55.2 million and $9.8 million, respectively, for a total of $65.0 million. For the year ended December 31, 2014, depreciation expense related to real estate assets and non-real estate assets was $39.0 million and $6.4 million, respectively, for a total of $45.4 million. For the year ended December 31, 2013, depreciation expense related to real estate assets and non-real estate assets was $31.5 million and $5.2 million, respectively, for a total of $36.7 million. The Company capitalizes certain 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 costs) begins when development efforts commence and ends when the asset is ready for its intended use. Capitalization of such costs, excluding interest, aggregated to $10.8 million, $10.6 million and $8.5 million for the years ended December 31, 2015, 2014 and 2013 respectively. Interest is capitalized during the period of development by first applying the Company’s actual borrowing rate on the related asset and second, to the extent necessary, by applying the Company’s weighted average effective borrowing rate to the actual development and other costs expended during the construction period. Interest is capitalized until the property is ready for its intended use. Interest costs capitalized totaled $ 9.8 million, $6.5 million and $4.1 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Acquisition of Real Estate | Acquisition of Real Estate – Acquisitions of real estate and other entities are either accounted for as asset acquisitions or business combinations depending on facts and circumstances. Purchase accounting is applied to the assets and liabilities related to all real estate investments acquired in accordance with the accounting requirements of ASC 805, Business Combinations , which requires the recording of net assets of acquired businesses at fair value. The fair value of the consideration transferred is allocated to the acquired tangible assets, consisting primarily of land, building and improvements, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, value of in-place leases, value of customer relationships, trade names, software intangibles and capital leases. The excess of the fair value of liabilities assumed, common stock issued and cash paid over the fair value of identifiable assets acquired is allocated to goodwill, which is not amortized by the Company. In developing estimates of fair value of acquired assets and assumed liabilities, management analyzed 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. Acquired in-place leases are amortized as amortization expense on a straight-line basis over the remaining life of the underlying leases. Amortization of acquired in place lease costs totaled $1.7 million, $2.2 million and $2.6 million for the years ended December 31, 2015, 2014 and 2013, respectively. Acquired customer relationships are amortized as amortization expense on a straight-line basis over the expected life of the customer relationship. Amortization of acquired customer relationships totaled $5.0 million, $1.3 million and $1.5 million for the years ended December 31, 2015, 2014 and 2013, respectively. This amortization expense is accounted for as real estate amortization expense. Other acquired intangible assets, which includes platform, above or below market leases, and trade name intangibles, are amortized on a straight-line basis over their respective expected lives. Platform and trade name intangibles are amortized as amortization expense. Platform amortization expense was $1.7 million for the year ended December 31, 2015. Trade name amortization expense was $0.6 million for the year ended December 31, 2015. Above or below market leases are amortized as a reduction to or increase to rental expense over the remaining lease terms, which totaled $0.1 million for the year ended December 31, 2015. There was no amortization related to platform , trade name , and above or below market lease intangibles for the years ended December 31, 2014 and 2013. The expense associated with above and below market leases and trade name intangibles is accounted for as real estate expense, whereas the expense associated with the amortization of platform intangibles is accounted for as non-real estate expense. See Note 3 for discussion of the preliminary purchase accounting allocation for the acquisition of Carpathia Hosting, Inc. (“Carpathia”) on June 16, 2015. |
Impairment of Long-Lived Assets and Goodwill | Impairment of Long-Lived Assets and Goodwill – The Company reviews its long-lived assets 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 generally 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 exceeds the value of the undiscounted cash flows, the fair value of the asset 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. The Company wrote off $3.1 million related to the Company’s decision to transfer its Federal Cloud customers to Carpathia’s existing Federal Cloud platform. This write off is included in transaction and integration costs on the Company’s consolidated statements of operations and comprehensive income. No impairment losses were recorded for the years ended December 31, 2015, 2014 and 2013 . The fair value of goodwill is the consideration transferred which is not allocable to identifiable intangible and tangible assets. Goodwill is subject to at least an annual assessment for impairment. As a result of the Carpathia acquisition, the Company recognized approximately $18 2 million in goodwill. In connection with the goodwill impairment evaluation that the Company performed on October 1, 2015, the Company determined qualitatively that there were no indicators of impairment, thus it did not perform a quantitative analysis. |
Cash and Cash Equivalents | Cash and Cash Equivalents – The Company considers 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. The Company’s 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. The Company mitigates this risk by depositing a majority of its funds with several major financial institutions. The Company also has not experienced any losses and, therefore, does not believe that the risk is significant. |
Deferred Costs | Deferred Costs – Deferred costs, net, on the Company’s balance sheets include both financing costs and leasing costs. Deferred financing costs represent fees and other costs incurred in connection with obtaining debt and are amortized over the term of the loan and are included in interest expense. Amortization of the deferred financing costs was $3.2 million, $2.7 million and $2.8 million for the years ended December 31, 2015, 2014 and 2013, respectively. During the year ended December 31, 2015, the Company wrote off unamortized financing costs of $0.5 million to the income statement in connection with the repayment of the Atlanta Metro equipment loan in June 2015 and the amendment of its unsecured credit facility in October 2015, both of which are discussed in more detail in Note 5. During the year ended December 31, 2014, the Company wrote off unamortized financing costs of $0.9 million primarily in connection with paying down $75 million of its unsecured credit facility, as well as modifying the unsecured credit facility in December 2014. In addition, the Company also made modifications to its Richmond credit facility which resulted in the write off of certain deferred financing costs. Deferred financing costs, net of accumulated amortization are as follows: December 31, December 31, (dollars in thousands) 2015 2014 Deferred financing costs $ 21,333 $ 18,152 Accumulated amortization (4,899) (1,683) Deferred financing costs, net $ 16,434 $ 16,469 Deferred leasing costs consist of external fees and internal costs incurred in the successful negotiations of leases and are deferred and amortized over the terms of the related leases on a straight-line basis. If an applicable lease terminates prior to the expiration of its initial term, the carrying amount of the costs are written off to amortization expense. Amortization of deferred leasing costs totaled $11.8 million, $9.4 million and $6.5 million for the years ended December 31, 2015, 2014 and 2013, respectively. Deferred leasing costs, net of accumulated amortization are as follows (excluding $2.8 million, net of amortization, related to a leasing arrangement at the Company’s Princeton facility in 2014): December 31, December 31, (dollars in thousands) 2015 2014 Deferred leasing costs $ 33,458 $ 26,799 Accumulated amortization (12,476) (9,378) Deferred leasing costs, net $ 20,982 $ 17,421 |
Advance Rents and Security Deposits | Advance Rents and Security Deposits – Advance rents, typically prepayment of the following month’s rent, consist of payments received from customers prior to the time they are earned and are recognized as revenue in subsequent periods when earned. Security deposits are collected from customers at the lease origination and are generally refunded to customers upon lease expiration. |
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. The Company records 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 $17.0 million, $10.5 million and $7.9 million as of December 31, 2015, 2014 and 2013, respectively. Additionally, $6.0 million, $4.7 million and $4.7 million of deferred income was amortized into revenue for the years ended December 31, 2015, 2014 and 2013, respectively. |
Interest Rate Derivative Instruments | Interest Rate Derivative Instruments – The Company utilizes derivatives to manage its interest rate exposure. During February 2012, the Company entered into interest rate swaps with a notional amount of $150 million which were cash flow hedges and qualified for hedge accounting. For these hedges, the effective portion of the change in fair value was recognized through other comprehensive income or loss. Amounts were reclassified out of other comprehensive income (loss) as the hedged item was recognized in earnings, either for ineffectiveness or for amounts paid relating to the hedge. The Company reflected all changes in the fair value of the swaps in other comprehensive income (loss) during the year ended December 31, 2014, as there was no ineffectiveness recorded in that period. The Company had no interest rate swaps outstanding at December 31, 2015 and 2014. |
Equity-based Compensation | Equity-based Compensation – All equity-based compensation is measured at fair value on the grant date or date of modification, as applicable, and recognized in earnings over the requisite service period. Depending upon the settlement terms of the awards, all or a portion of the fair value of equity-based awards may be presented as a liability or as equity in the consolidated balance sheets. Equity-based compensation costs are measured based upon their estimated fair value on the date of grant or modification. Equity-based compensation expense net of forfeited and repurchased awards was $7.0 million, $4.2 million and $2. 0 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Rental Revenue | Rental Revenue – The Company, as a lessor, has retained substantially all of the risks and benefits of ownership and accounts for its leases as operating leases. 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 sheets included in rents and other receivables, net was $9.1 million and $4.0 million as of December 31, 2015 and December 31, 2014 , respectively. Rental revenue also includes amortization of set-up fees which are amortized over the term of the respective lease as discussed above. |
Cloud and Managed Services Revenue | Cloud and Managed Services Revenue – The Company may provide both its cloud product and use of its managed services to its customers on an individual or combined basis. Service fee revenue is recognized as the revenue is earned, which generally coincides with the services being provided. |
Allowance for Uncollectible Accounts Receivable | Allowance for Uncollectible Accounts Receivable – Rents receivable are recognized when due and are carried at cost, less an allowance for doubtful accounts. The Company records a provision for losses on rents receivable equal to the estimated uncollectible accounts, which is based on management’s historical experience and a review of the current status of the Company’s receivables. As necessary, the Company also establishes an appropriate allowance for doubtful accounts for receivables arising from the straight-lining of rents. The aggregate allowance for doubtful accounts was $5.1 million and $3.7 million as of December 31, 2015 and 2014, respectively. |
Capital Leases | Capital Leases – The Company evaluates leased real estate to determine whether the lease should be classified as a capital or operating lease in accordance with U.S GAAP. The Company periodically enters into capital leases for certain equipment. In addition, through its acquisition of Carpathia on June 16, 2015, the Company is now party to capital leases for property and equipment, as well as financing obligations related to a sale-leaseback transaction. The outstanding liabilities for the capital leases were $26.9 million and $13.1 million as of December 31, 2015 and 2014, respectively. The outstanding liabilities for the lease financing obligations were $ 22.8 million as of December 31, 2015 . The net book value of the assets associated with these leases was approximately $51.0 million and $7.4 million as of December 31, 2015 and 2014, respectively. Depreciation related to the associated assets is included in depreciation and amortization expense in the Statements of Operations and Comprehensive Income. See Note 3 for further discussion of the acquisition of Carpathia and Note 5 for further discussion of capital leases and lease financing obligations. |
Recoveries from Customers | Recoveries from Customers – Certain customer leases contain provisions under which the customers reimburse the Company for a portion of the property’s real estate taxes, insurance and other operating expenses, which include certain power and cooling-related charges. The reimbursements are included in revenue as recoveries from customers in the Statements of Operations and Comprehensive Income in the period the applicable expenditures are incurred. Certain customer leases are structured to provide a fixed monthly billing amount that includes an estimate of various operating expenses, with all revenue from such leases included in rental revenues. |
Segment Information | Segment Information – The Company manages its business as one operating segment and thus one reportable segment consisting of a portfolio of investments in data centers located primarily in the United States with others in Canada, Europe and the Asia-Pacific region. |
Customer Concentrations | Customer Concentrations – As of December 31, 2015 , one of the Company’s customers represented 10.5% of its total monthly rental revenue. No other customers exceeded 4% of total monthly rental revenue. As of December 31, 2015 , two of the Company’s customers exceeded 5% of total accounts receivable. In aggregate, these two customers accounted for 34% of total accounts receivable. Both of these customers individually exceeded 10% of total accounts receivable. |
Income Taxes | Income Taxes – The Company elected for two of its existing subsidiaries to be taxed as a taxable REIT subsidiary pursuant to the REIT rules of the U.S. Internal Revenue Code. For the taxable REIT subsidiaries, income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. As of December 31, 2014, one of the taxable REIT subsidiaries’ deferred tax assets were primarily the result of U.S. net operating loss carryforwards. A valuation allowance was recorded against its gross deferred tax asset balance as of December 31, 2014. As a result of the acquisition of Carpathia, the Company determined that it is more likely than not that pre-existing deferred tax assets will be realized by the combined entity, and the valuation allowance was eliminated. The change in the valuation allowance resulting from the change in circumstances is included in income, recognized in deferred income tax benefit in the year ended December 31, 2015. In addition to the deferred income tax benefit recognized in connection with the elimination of the valuation allowance, a deferred tax benefit was recognized in the year ended December 31, 2015 in connection with recorded operating losses. The taxable REIT subsidiary consolidated group has a net deferred tax liability position primarily due to fixed assets and the customer-based intangibles acquired as part of the Carpathia acquisition. Temporary differences and carry forwards which give rise to the deferred tax assets and liabilities are as follows: For the Year Ended December 31, 2015 2014 2013 Deferred tax liabilities Property and equipment $ (16,032) $ (5,784) $ (4,905) Goodwill (407) - - Intangibles (23,896) - - Other (2,350) (1,427) (873) Gross deferred tax liabilities (42,685) (7,211) (5,778) Deferred tax assets Net operating loss carryforwards 14,107 9,137 5,861 Deferred revenue and setup charges 3,747 868 583 Leases 3,097 - - Credits 630 - - Other 2,291 601 699 Gross deferred tax assets 23,872 10,606 7,143 Net deferred tax assets (18,813) 3,395 1,365 Valuation allowance - (3,395) (1,365) Net deferred $ (18,813) $ - $ - The taxable REIT subsidiaries currently have $33.0 million of net operating loss carryforwards related to federal income taxes that expire in 1 4 -20 years. The taxable REIT subsidiaries also have $32.3 million of net operating loss carryforwards relating to state income taxes that expire in 4 -20 years. 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. The Company’s effective tax rates were 34.8% , 0% and 0% for the years ended December 31, 2015, 2014 and 2013, respectively. The increase in the effective tax rate in 2015 is primarily due to the elimination of the valuation allowance as a result of the Carpathia acquisition, as well as recorded operating losses in the current year. The differences between total income tax expense or benefit and the amount computed by applying the statutory income tax rate to income before provision for income taxes with respect to the TRS activity were as follows: For the Year Ended December 31, 2015 2014 2013 TRS Statutory rate of 34% applied to pre-tax income (loss) $ (6,683) $ (1,793) $ (441) Permanent differences, net 281 128 1,061 State income (tax) benefit, net of federal benefit (268) (365) (113) Valuation allowance (decrease) increase (3,395) 2,030 (507) Total tax expense (benefit) $ (10,065) $ - $ - Effective tax rate 34.75% 0.00% 0.00% As of December 31, 2015 and 2014, the Company had no uncertain tax positions. If the Company incurs any interest or penalties on tax liabilities from significant uncertain tax positions, those items will be classified as interest expense and general and administrative expense, respectively, in the Statements of Operations and Comprehensive Income. For the years ended December 31, 2015, 2014 and 2013, the Company had no such interest or penalties. The Company is not currently under examination by the Internal Revenue Service. |
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 the Company has 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. The Company’s 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 the Company’s previous interest rate swaps matured on September 28, 2014, there were no financial assets or liabilities measured at fair value on a recurring basis on the consolidated balance sheets as of December 31, 2015 and 2014. The Company’s purchase price allocation of Carpathia is a fair value estimate that utilized Level 3 inputs and is measured on a non-recurring basis. See Note 3 for further detail. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which supersedes the current revenue recognition requirements in ASC 606, Revenue Recognition. Under this new guidance, entities should recognize revenues to depict the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. This ASU also requires enhanced disclosures. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted for annual and interim periods beginning after December 15, 2016. Retrospective and modified retrospective application is allowed. The Company is currently assessing the impact of this amendment on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs . The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, and not as a separate deferred charge. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. In June 2015, the Securities and Exchange Commission (“SEC”) stated that given the absence of authoritative guidance within this ASU for debt issuance costs related to revolving debt arrangements, the SEC staff would not object to an entity deferring and presenting such costs as an asset and subsequently amortizing them ratably over the term of the revolving debt arrangement. This announcement confirms that revolver arrangement costs are not within the scope of this ASU. The amendments in this ASU are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption was permitted. The amendments are required to be applied on a retrospective basis, and upon transition, an entity is required to comply with the applicable disclosures for a change in an accounting principle. Adoption of this standard will affect the classification of certain debt issuance costs on the Company’s consolidated balance sheets. In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments , that eliminates the requirement for an acquirer in a business combination to account for measurement period adjustments retrospectively. The new guidance requires that the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. The amendments in this ASU are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The Company is currently assessing the impact of this standard on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which supersedes the current lease guidance in ASC 840, Lease s. The core principle of Topic 842 requires lessees to recognize the assets and liabilities that arise from nearly all leases in the statement of financial position. Accounting applied by lessors will remain largely consistent with previous guidance, additional changes set to align lessor accounting with the revised lessee model and the FASB’s revenue recognition guidance in Topic 606. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact of this standard on its consolidated financial statements. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Deferred Financing Costs, Net of Accumulated Amortization | In addition, the Company also made modifications to its Richmond credit facility which resulted in the write off of certain deferred financing costs. Deferred financing costs, net of accumulated amortization are as follows: December 31, December 31, (dollars in thousands) 2015 2014 Deferred financing costs $ 21,333 $ 18,152 Accumulated amortization (4,899) (1,683) Deferred financing costs, net $ 16,434 $ 16,469 |
Deferred Leasing Costs, Net of Accumulated Amortization | Deferred leasing costs, net of accumulated amortization are as follows (excluding $2.8 million, net of amortization, related to a leasing arrangement at the Company’s Princeton facility in 2014): December 31, December 31, (dollars in thousands) 2015 2014 Deferred leasing costs $ 33,458 $ 26,799 Accumulated amortization (12,476) (9,378) Deferred leasing costs, net $ 20,982 $ 17,421 |
Summary of Temporary Differences and Carry Forwards Which Give Rise to the Deferred Tax Assets and Liabilities | Temporary differences and carry forwards which give rise to the deferred tax assets and liabilities are as follows: For the Year Ended December 31, 2015 2014 2013 Deferred tax liabilities Property and equipment $ (16,032) $ (5,784) $ (4,905) Goodwill (407) - - Intangibles (23,896) - - Other (2,350) (1,427) (873) Gross deferred tax liabilities (42,685) (7,211) (5,778) Deferred tax assets Net operating loss carryforwards 14,107 9,137 5,861 Deferred revenue and setup charges 3,747 868 583 Leases 3,097 - - Credits 630 - - Other 2,291 601 699 Gross deferred tax assets 23,872 10,606 7,143 Net deferred tax assets (18,813) 3,395 1,365 Valuation allowance - (3,395) (1,365) Net deferred $ (18,813) $ - $ - |
Schedule of Differences between Total Income Tax or Benefit and Amount Computed by Applying the Statutory Income Tax Rate | The differences between total income tax expense or benefit and the amount computed by applying the statutory income tax rate to income before provision for income taxes with respect to the TRS activity were as follows: For the Year Ended December 31, 2015 2014 2013 TRS Statutory rate of 34% applied to pre-tax income (loss) $ (6,683) $ (1,793) $ (441) Permanent differences, net 281 128 1,061 State income (tax) benefit, net of federal benefit (268) (365) (113) Valuation allowance (decrease) increase (3,395) 2,030 (507) Total tax expense (benefit) $ (10,065) $ - $ - Effective tax rate 34.75% 0.00% 0.00% |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Acquisitions [Abstract] | |
Schedule of the Preliminary Allocation of the Fair Value of Assets Acquired and Liabilities Assumed in Acquisition | The following table summarizes the consideration for the Carpathia acquisition and the preliminary allocation of the fair value of assets acquired and liabilities assumed at the acquisition date (in thousands). This allocation is subject to change pending the final valuation of these assets and liabilities: Adjusted Carpathia Allocation as of December 31, 2015 Original Allocation Reported as of June 30, 2015 Adjusted Fair Value Land $ 1,130 $ 1,130 $ - Buildings and improvements 78,898 79,372 (474) Construction in progress 12,127 12,127 - Acquired intangibles 93,400 89,847 3,553 Net working capital 3,610 2,569 1,041 Total identifiable assets acquired 189,165 185,045 4,120 Capital lease and lease financing obligations 43,832 43,832 - Deferred income taxes 29,934 19,766 10,168 Acquired above market lease 2,453 - 2,453 Total liabilities assumed 76,219 63,598 12,621 Net identifiable assets acquired 112,946 121,447 (8,501) Goodwill 181,738 173,237 8,501 Net assets acquired $ 294,684 $ 294,684 $ - |
Pro Forma Consolidated Statements of Operations Including Acquisition | The following table represents the pro forma condensed consolidated statements of operations of the combined entities for the years ended December 31, 2015, 2014 and 2013 (in thousands): (Unaudited) Pro Forma Condensed Consolidated Statements of Operations Year Ended December 31, 2015 2014 2013 Revenue $ 352,529 $ 299,906 $ 250,338 Net income $ 28,109 $ 12,919 $ (9,592) |
Real Estate Assets and Constr29
Real Estate Assets and Construction in Progress (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Real Estate Assets and Construction in Progress [Abstract] | |
Summary of Properties Owned or Leased by the Company | The following is a summary of properties owned or leased by the Company as of December 31, 2015 and 2014 (in thousands): As of December 31, 2015 : Property Location Land Buildings and Improvements Construction in Progress Total Cost Owned Properties Suwanee, Georgia (Atlanta-Suwanee) $ 3,521 $ 150,028 $ 15,330 $ 168,879 Atlanta, Georgia (Atlanta-Metro) 15,397 406,190 41,835 463,422 Santa Clara, California* - 94,437 1,379 95,816 Richmond, Virginia 2,180 208,654 85,771 296,605 Sacramento, California 1,481 61,462 73 63,016 Princeton, New Jersey 20,700 32,708 422 53,830 Dallas-Fort Worth, Texas 8,590 71,783 120,331 200,704 Chicago, Illinois - - 70,749 70,749 Miami, Florida 1,777 30,554 144 32,475 Lenexa, Kansas 437 3,511 - 3,948 Duluth, Georgia Office Building 1,899 1,920 - 3,819 55,982 1,061,247 336,034 1,453,263 Leased Properties Leased facilities acquired in 2015 *** 1,130 89,989 7,196 98,315 Jersey City, New Jersey - 28,228 2,421 30,649 Overland Park, Kansas - 922 ** 4 926 1,130 119,139 9,621 129,890 $ 57,112 $ 1,180,386 $ 345,655 $ 1,583,153 * Owned facility subject to long-term ground sublease. ** This does not include the portion of the business that is used for QTS office space or other real estate not used by customers. *** Includes 13 facilities. All facilities are leased, including those subject to capital leases. As of December 31, 2014 : Property Location Land Buildings and Improvements Construction in Progress Total Cost Owned Properties Suwanee, Georgia (Atlanta-Suwanee) $ 3,521 $ 138,991 $ 6,345 $ 148,857 Atlanta, Georgia (Atlanta-Metro) 15,397 356,122 22,693 394,212 Santa Clara, California* - 90,332 650 90,982 Richmond, Virginia 2,180 127,080 71,794 201,054 Sacramento, California 1,481 60,094 278 61,853 Princeton, New Jersey 17,976 35,951 90 54,017 Dallas-Fort Worth, Texas 5,808 44,053 89,982 139,843 Chicago, Illinois - - 21,786 21,786 Miami, Florida 1,777 28,786 129 30,692 Lenexa, Kansas 437 3,298 25 3,760 Wichita, Kansas - 1,409 - 1,409 48,577 886,116 213,772 1,148,465 Leased Properties Jersey City, New Jersey - 27,318 920 28,238 Overland Park, Kansas - 852 ** 27 879 - 28,170 947 29,117 $ 48,577 $ 914,286 $ 214,719 $ 1,177,582 * Owned facility subject to long-term ground sublease ** This does not include the portion of the business that is used for QTS office space or other real estate not used by customers. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt [Abstract] | |
Outstanding Debt Including Capital Leases | Below is a listing of the Company’s outstanding debt, including capital leases and lease financing obligations, as of December 31, 2015 and 2014 (in thousands): Weighted Average Coupon Interest Rate at December 31, December 31, December 31, 2015 Maturities 2015 2014 Unsecured Credit Facility Revolving Credit Facility 1.82% December 17, 2019 $ 224,002 $ 139,838 Term Loan I 1.78% December 17, 2020 150,000 100,000 Term Loan II 1.92% April 27, 2021 150,000 - Senior Notes, net of discount 5.88% August 1, 2022 297,976 297,729 Richmond Credit Facility N/A N/A - 70,000 Atlanta-Metro Equipment Loan N/A N/A - 16,600 Capital Lease and Lease Financing Obligations 3.35% 2016 - 2025 49,761 13,062 Total 3.31% $ 871,739 $ 637,229 |
Annual Remaining Principal Payment | The annual remaining principal payment requirements as of December 31, 2015 per the contractual maturities and excluding extension options, capital leases and lease financing obligations, are as follows (in thousands): 2016 $ - 2017 - 2018 - 2019 224,002 2020 150,000 Thereafter 450,000 Total $ 824,002 |
Schedule of Combined Future Payment Obligations, Excluding Interest | The following table summarizes the Company’s combined future payment obligations, excluding interest, as of December 31, 2015 , on the capital leases and lease financing obligations above (in thousands): 2016 $ 12,558 2017 12,388 2018 8,804 2019 2,461 2020 2,190 Thereafter 11,360 Total $ 49,761 |
Partners' Capital, Equity and31
Partners' Capital, Equity and Incentive Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Partners' Capital, Equity and Incentive Compensation Plans [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 years ended December 31, 2015, 2014 and 2013 : 2010 Equity Incentive Plan 2013 Equity Incentive Plan Number of Class O units Weighted average exercise price Weighted average fair value Number of Class RS units Weighted average grant date value Options Weighted average exercise price Weighted average fair value Restricted Stock Weighted average grant date value Outstanding at January 1, 2013 1,471,943 $23.09 $2.84 178,750 $24.20 — $ — $ — — $ — Granted 224,244 25.00 10.62 — — 370,410 21.00 3.50 108,629 21.00 Exercised — — — — — — — — — — Released from restriction — — — (5,000) 20.00 — — — — — Cancelled/Expired (73,440) — 5.31 — — (2,500) — 3.52 — — Outstanding at December 31, 2013 1,622,747 $23.44 $3.84 173,750 $24.31 367,910 $21.00 $3.50 108,629 $21.00 Granted — — — — — 238,039 25.59 4.96 172,102 32.66 Exercised/Vested (15,750) 20.71 4.75 — — (3,000) 21.00 3.52 (25,786) 21.00 Released from restriction (1) — — — (99,125) 24.94 — — — — — Cancelled/Expired (88,280) 23.01 5.23 — — (18,000) 21.00 3.52 (8,160) 21.00 Outstanding at December 31, 2014 1,518,717 $23.49 $3.75 74,625 $23.49 584,949 $22.87 $4.10 246,785 $29.13 Granted — — — — — 317,497 36.16 8.03 230,271 36.71 Exercised/Vested (2) (222,499) 22.02 4.18 — — (23,157) 21.30 3.63 (54,400) 28.37 Released from restriction (1) — — — (34,750) 25.00 — — — — — Cancelled/Expired (3) (3,319) 20.00 3.92 — — (11,407) 21.00 3.52 (27,748) 28.33 Outstanding at December 31, 2015 1,292,899 $23.76 $3.68 39,875 $22.18 867,882 $27.80 $5.56 394,908 $33.82 (1) This represents Class RS units that upon vesting have converted to Operating Partnership units. (2) This represents 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. (3) Includes 26,298 of restricted Class A common stock surrendered by certain employees to satisfy their statutory minimum federal and state tax obligations associated with the vesting of restricted common stock . |
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 Class O units, restricted stock and options to purchase shares of Class A common stock granted for the years ended December 31, 2015, 2014 and 2013 are included in the following table on a per unit basis. Class O units and options to purchase shares of Class A common stock were valued using the Black-Scholes model. 2015 2014 2013 Fair value of Class O Units granted $ - $ - $10.26 - $10.92 Fair value of restricted stock granted $35.81 - $37.69 $25.51 - $35.51 $ 21.00 Fair value of options granted $8.00 - $8.77 $4.94 - $5.98 $3.45 - $3.52 Expected term (years) 5.5 -6.1 5.5 -6.1 5.5 -7.0 Expected volatility 33% 33% 32% -40% Expected dividend yield 3.40 -3.57% 4.02 - 4.55 % 5.5% Expected risk-free interest rates 1.67 -1.94% 1.7 -1.9% 1.4% -1.8% |
Summary of Information About Awards Outstanding | The following tables summarize information about awards outstanding as of December 31, 2015 . Operating Partnership Awards Outstanding Exercise prices Awards outstanding Weighted average remaining vesting period (years) Class RS Units $ - 39,875 0 Class O Units $ 20.00 -25.00 1,292,899 1 Total Operating Partnership awards outstanding 1,332,774 QTS Realty Trust, Inc. Awards Outstanding Exercise prices Awards outstanding Weighted average remaining vesting period (years) Restricted stock $ - 394,908 3 Options to purchase Class A common stock $ 21.00 -37.69 867,882 1 Total QTS Realty Trust, Inc. awards outstanding 1,262,790 |
Schedule of Quarterly Cash Dividends | The following tables present quarterly cash dividends and distributions paid to QTS’ common stockholders and the Operating Partnership’s unit holders for the years ended December 31, 2015 and 2014: Year Ended December 31, 2015 Record Date Payment Date Per Common Share and Per Unit Rate Aggregate Dividend/Distribution Amount (in millions) September 18, 2015 October 6, 2015 $ 0.32 $ 15.3 June 19, 2015 July 8, 2015 0.32 15.3 March 20, 2015 April 7, 2015 0.32 13.4 December 19, 2014 January 7, 2015 0.29 10.7 $ 1.25 $ 54.7 Year Ended December 31, 2014 Record Date Payment Date Per Common Share and Per Unit Rate Aggregate Dividend/Distribution Amount (in millions) September 19, 2014 October 7, 2014 $ 0.29 $ 10.5 June 20, 2014 July 8, 2014 0.29 10.9 March 20, 2014 April 8, 2014 0.29 10.8 December 20, 2013 January 7, 2014 0.24 * 9.0 $ 1.11 $ 41.2 * The per common share and per unit rate is prorated. It covers the period beginning October 15, 2013 (the closing date of the IPO) through December 31, 2013 and is based on a full quarter distribution of $0.29 per common share and per unit. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Summary of Related Party Transactions | The transactions which occurred during the years ended December 31, 2015, 2014 and 2013 are outlined below (in thousands): December 31, (dollars in thousands) 2015 2014 2013 Tax, utility, insurance and other reimbursement $ 589 $ 692 $ 336 Rent expense 1,014 1,026 977 Capital assets acquired 261 266 625 Total $ 1,864 $ 1,984 $ 1,938 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings per Share [Abstract] | |
Summary of Basic and Diluted Earnings Per Share | The computation of basic and diluted net income per share is as follows (in thousands, except per share data): Year Ended For the period October 15, 2013 December 31, through 2015 2014 December 31, 2013 Numerator: Net income available to common stockholders - basic $ 20,326 $ 15,072 $ 3,154 Effect of net income attributable to noncontrolling interests 3,803 4,031 848 Net income available to common stockholders - diluted $ 24,129 $ 19,103 $ 4,002 Denominator: Weighted average shares outstanding - basic 37,568 29,055 28,973 Effect of Class A and Class RS partnership units * 7,029 7,770 7,797 Effect of Class O units and options to purchase Class A common stock on an "as if" converted basis * 756 309 24 Weighted average shares outstanding - diluted 45,353 37,134 36,794 Net income per share attributable to common stockholders - basic $ 0.54 $ 0.52 $ 0.11 Net income per share attributable to common stockholders - diluted $ 0.53 $ 0.51 $ 0.11 * The Class A units, Class RS units and Class O units represent limited partnership interests in the Operating Partnership, and are described in more detail in Note 8. |
Operating Leases, as Lessee (Ta
Operating Leases, as Lessee (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Future Non-cancellable Minimum Rental Payments Required Under Operating Leases and/or Licenses | The future non-cancellable minimum rental payments required under operating leases and/or licenses at December 31, 2015 are as follows (in thousands): Year Ending December 31, 2016 $ 12,211 2017 10,570 2018 9,886 2019 8,327 2020 8,062 Thereafter 79,469 Total $ 128,525 |
Customer Leases, as Lessor (Tab
Customer Leases, as Lessor (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Future Minimum Lease Payments to be Received Under Non-Cancelable Operating Customer Leases | Future minimum lease payments to be received under non-cancelable operating customer leases (exclusive of recoveries of operating costs from customers) are as follows for the years ending December 31 (in thousands): 2016 $ 283,060 2017 212,656 2018 153,193 2019 102,661 2020 87,978 Thereafter 217,415 Total $ 1,056,963 |
Quarterly Financial Informati36
Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Selected Quarterly Information | The tables below reflect the selected quarterly information for the years ended December 31, 2015 and 2014 for QTS (in thousands except share data): Three Months Ended December 31, September 30, June 30, March 31, 2015 Revenues $ 92,690 $ 88,890 $ 68,117 $ 61,386 Operating income 7,243 11,095 7,266 10,379 Net income 5,334 8,238 5,520 5,037 Net income attributable to common shares 4,603 7,009 4,632 4,082 Net income per share attributable to common shares - basic 0.11 0.17 0.13 0.13 Net income per share attributable to common shares - diluted 0.11 0.17 0.12 0.13 2014 Revenues $ 59,563 $ 57,945 $ 51,338 $ 48,943 Operating income 11,682 9,913 6,266 7,413 Net income 5,848 4,006 3,921 5,328 Net income attributable to common shares 4,627 3,157 3,090 4,198 Net income per share attributable to common shares - basic 0.16 0.11 0.11 0.14 Net income per share attributable to common shares - diluted 0.16 0.11 0.11 0.14 |
Qualitytech, LP [Member] | |
Summary of Selected Quarterly Information | The table below reflects the selected quarterly information for the years ended December 31, 2015 and 2014 for the Operating Partnership (in thousands): Three Months Ended December 31, September 30, June 30, March 31, 2015 Revenues $ 92,690 $ 88,890 $ 68,117 $ 61,386 Operating income 7,243 11,095 7,266 10,379 Net income 5,334 8,238 5,520 5,037 2014 Revenues $ 59,563 $ 57,945 $ 51,338 $ 48,943 Operating income 11,682 9,913 6,266 7,413 Net income 5,848 4,006 3,921 5,328 |
Description of Business (Narrat
Description of Business (Narrative) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | ||||
Dec. 31, 2013USD ($) | Dec. 31, 2015property$ / sharesshares | Dec. 31, 2014$ / sharesshares | Oct. 15, 2013$ / sharesshares | Sep. 30, 2013shares | |
Organization And Description Of Business [Line Items] | |||||
Number of properties | property | 24 | ||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | |||
Common stock, shares issued | 41,225,784 | 29,408,138 | |||
Net proceeds from issuance of shares | $ | $ 279 | ||||
Ownership interest | 85.80% | ||||
Common Class A [Member] | |||||
Organization And Description Of Business [Line Items] | |||||
Common stock, par value | $ / shares | $ 0.01 | ||||
Common stock, shares issued | 14,087,500 | ||||
Chief Executive Officer [Member] | |||||
Organization And Description Of Business [Line Items] | |||||
Common stock, shares issued | 1,000 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 17 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Jul. 23, 2014 | |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Useful life of property | 40 years | |||||
Depreciation expense from operation | $ 65,000 | $ 45,400 | $ 36,700 | |||
Real estate cost capitalized excluding interest cost | 10,800 | 10,600 | 8,500 | |||
Real estate interest cost capitalized incurred | 9,800 | 6,500 | 4,100 | |||
Amortization of below market lease | 100 | 0 | 0 | |||
Amortization of the deferred financing costs | $ 496 | 3,181 | 2,673 | |||
Deferred leasing costs, net | 16,434 | 16,469 | $ 16,434 | |||
In Place Leases [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Amortization of lease costs | 1,700 | 2,200 | 2,600 | |||
Tenant Relationship [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Amoritzation of intangible assets | 5,000 | 1,300 | 1,500 | |||
Platform [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Amoritzation of intangible assets | 1,700 | 0 | 0 | |||
Trade Names [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Amoritzation of intangible assets | 600 | 0 | 0 | |||
Qualitytech, LP [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Amortization of the deferred financing costs | 3,181 | 2,673 | 2,777 | |||
Real Estate Assets [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Depreciation expense from operation | 55,200 | 39,000 | 31,500 | |||
Non-Real Estate Assets [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Depreciation expense from operation | $ 9,800 | 6,400 | $ 5,200 | |||
Minimum [Member] | Real Property [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Useful life of property | 20 years | |||||
Maximum [Member] | Real Property [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Useful life of property | 40 years | |||||
Maximum [Member] | Leasehold Improvements [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Useful life of property | 20 years | |||||
Senior Notes [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Interest rate | 5.875% | 5.875% | 5.875% | |||
Senior notes due | 2,022 | 2,022 | ||||
Princeton Facility [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Deferred leasing costs, net | $ 2,800 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (Additional Information 1) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2015 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 29, 2012 | Feb. 08, 2012 | |
Summary Of Significant Accounting Policies [Line Items] | |||||||
Asset write off | $ 3,100 | ||||||
Impairment losses | 0 | $ 0 | $ 0 | ||||
Goodwill | 181,738 | ||||||
Amortization of the deferred financing costs | $ 496 | 3,181 | 2,673 | ||||
Written off unamortized debt cost | $ 500 | 900 | |||||
Amortization of deferred leasing costs totaled | 11,800 | 9,400 | 6,500 | ||||
Deferred income | $ 7,900 | 16,991 | 10,531 | 7,900 | |||
Amortization of deferred revenue | 6,000 | 4,700 | 4,700 | ||||
Deferred leasing costs, net | 16,434 | 16,469 | |||||
Company recorded equity-based compensation expense net of repurchased awards and forfeits | 7,000 | 4,200 | 2,000 | ||||
Amount of the straight-line rent receivable on the balance sheets included in rents and other receivables | 9,100 | 4,000 | |||||
Unsecured Revolving Credit Facility [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Amortization of the deferred financing costs | 3,200 | 2,700 | $ 2,800 | ||||
Repayment of credit facility | 75,000 | ||||||
Interest Rate Swap [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Derivative liability | 0 | 0 | |||||
Derivative ineffectiveness | 0 | ||||||
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Notional amount of derivative | $ 150,000 | $ 150,000 | |||||
Carpathia Hosting, Inc. [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Goodwill | $ 173,237 | $ 181,738 | |||||
Princeton Facility [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Deferred leasing costs, net | $ 2,800 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Deferred Financing Costs, Net of Accumulated Amortization) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of Significant Accounting Policies [Abstract] | ||
Deferred financing costs | $ 21,333 | $ 18,152 |
Accumulated amortization | (4,899) | (1,683) |
Deferred financing costs, net | $ 16,434 | $ 16,469 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Deferred Leasing Costs, Net of Accumulated Amortization) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of Significant Accounting Policies [Abstract] | ||
Deferred leasing costs | $ 33,458 | $ 26,799 |
Accumulated amortization | (12,476) | (9,378) |
Deferred leasing costs, net | $ 20,982 | $ 17,421 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (Summary of Temporary Differences and Carry Forwards Which Give Rise to Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred tax liabilities | |||
Property and equipment | $ (16,032) | $ (5,784) | $ (4,905) |
Goodwill | (407) | ||
Intangibles | (23,896) | ||
Other | (2,350) | $ (1,427) | $ (873) |
Gross deferred tax liabilities | (42,685) | (7,211) | (5,778) |
Deferred tax assets | |||
Net operating loss carryforwards | 14,107 | 9,137 | 5,861 |
Deferred revenue and setup charges | 3,747 | $ 868 | $ 583 |
Leases | 3,097 | ||
Other credits | 630 | ||
Other | 2,291 | $ 601 | $ 699 |
Gross deferred tax assets | 23,872 | 10,606 | 7,143 |
Net deferred tax assets | 3,395 | 1,365 | |
Deferred income tax lliabilities net | $ (18,813) | ||
Valuation allowance | $ (3,395) | $ (1,365) | |
Net deferred | $ (18,813) |
Summary of Significant Accoun43
Summary of Significant Accounting Policies (Additional Information 2) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)segmententity | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Sep. 30, 2014USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Aggregate allowance for doubtful accounts | $ 5,100 | $ 3,700 | ||
Capital lease obligations | 26,900 | 13,100 | ||
Lease financing obligations | 22,800 | |||
Net book value of assets associated with leases | $ 51,000 | 7,400 | ||
Number of operating segments | segment | 1 | |||
Number of reportable segments | segment | 1 | |||
Valuation allowance | 3,395 | $ 1,365 | ||
Financial assets | $ 0 | 0 | ||
Financial liability | 0 | 0 | ||
Interest and penalties related to income taxes | $ 0 | $ 0 | $ 0 | |
Number of subsidiaries taxed as taxable REIT | entity | 2 | |||
Effective tax rate | 34.75% | 0.00% | 0.00% | |
Federal [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Net operating loss carry forwards related to Federal income taxes | $ 33,000 | |||
State [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Net operating loss carry forwards related to State income taxes | $ 32,300 | |||
Minimum [Member] | Federal [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Net operating loss carry forwards, expiration period | 14 years | |||
Minimum [Member] | State [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Net operating loss carry forwards, expiration period | 4 years | |||
Maximum [Member] | Federal [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Net operating loss carry forwards, expiration period | 20 years | |||
Maximum [Member] | State [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Net operating loss carry forwards, expiration period | 20 years | |||
Accounts Receivable [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Aggregate allowance for doubtful accounts | $ 3,700 | $ 3,700 | ||
Customer One [Member] | Rental Revenue [Member] | Maximum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of total revenue | 10.50% | |||
Two Customers [Member] | Accounts Receivable [Member] | Minimum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of total accounts receivable | 5.00% | |||
Two Customers [Member] | Accounts Receivable [Member] | Maximum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of total accounts receivable | 34.00% | |||
Other Customers [Member] | Rental Revenue [Member] | Maximum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of total revenue | 4.00% | |||
Carpathia Hosting, Inc. [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Lease financing obligations | $ 22,800 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies (Schedule of Differences between Total Income Tax or Benefit and Amount Computed by Applying the Statutory Income Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of Significant Accounting Policies [Abstract] | |||
Statutory rate of 34% applied to pre-tax income (loss) | $ (6,683) | $ (1,793) | $ (441) |
Permanent differences, net | 281 | 128 | 1,061 |
State income (tax) benefit, net of federal benefit | (268) | (365) | (113) |
Valuation allowance (decrease) increase | (3,395) | $ 2,030 | $ (507) |
Total tax expense (benefit) | $ (10,065) | ||
Effective tax rate | 34.75% | 0.00% | 0.00% |
Statutory rate | 34.00% |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) | Jun. 16, 2015USD ($)propertycustomer | Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jul. 23, 2014USD ($) |
Business Acquisition [Line Items] | ||||||
Ownership interest | 85.80% | 85.80% | ||||
Cash consideration paid for acquisition | $ 47,963,000 | $ 320,058,000 | $ 201,145,000 | |||
Carpathia Hosting, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Ownership interest | 100.00% | |||||
Acquisition costs | $ 366,700,000 | |||||
Number of customers of acquired entity | customer | 230 | |||||
Number of domestic data centers acquired | property | 8 | |||||
Number of international data centers acquired | property | 5 | |||||
Tax basis of ducutible amount of goodwill acquired | $ 16,600,000 | 16,600,000 | ||||
Amoritization of intangible assets in the remainder of the year | 11,000,000 | 11,000,000 | ||||
Amoritization of intangible assets in 2017 | 11,000,000 | 11,000,000 | ||||
Amoritization of intangible assets in 2018 | 8,800,000 | 8,800,000 | ||||
Amoritization of intangible assets in 2019 | 6,700,000 | 6,700,000 | ||||
Amoritization of intangible assets in 2020 | 6,700,000 | 6,700,000 | ||||
Revenue since acquisition | 49,200,000 | |||||
Net income since acquisition | $ 2,300,000 | |||||
Deluth, Georgia [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition costs | 3,800,000 | |||||
Deluth, Georgia [Member] | Land [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition costs | 1,900,000 | |||||
Deluth, Georgia [Member] | Building and Building Improvements [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition costs | $ 1,900,000 | |||||
Senior Notes [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Notes issued | $ 300,000,000 |
Acquisitions (Allocation of the
Acquisitions (Allocation of the Fair Value of Assets Acquired and Liabilities Assumed as of the Acquisition Date) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Business Acquisition [Line Items] | ||
Goodwill | $ 181,738 | |
Carpathia Hosting, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Land | 1,130 | $ 1,130 |
Buildings and improvements | 78,898 | 79,372 |
Construction in process | 12,127 | 12,127 |
Acquired intangibles, net | 93,400 | 89,847 |
Net working capital | 3,610 | 2,569 |
Total identifiable assets acquired | 189,165 | 185,045 |
Capital lease and lease financing obligations | 43,832 | 43,832 |
Deferred income taxes | 29,934 | 19,766 |
Aquired above market lease | 2,453 | |
Total liabilities assumed | 76,219 | 63,598 |
Net identifiable assets acquired | 112,946 | 121,447 |
Goodwill | 181,738 | 173,237 |
Net assets acquired | $ 294,684 | $ 294,684 |
Carpathia Hosting, Inc. [Member] | Adjustment [Member] | ||
Business Acquisition [Line Items] | ||
Land | ||
Buildings and improvements | $ (474) | |
Construction in process | ||
Acquired intangibles, net | $ 3,553 | |
Net working capital | 1,041 | |
Total identifiable assets acquired | $ 4,120 | |
Capital lease and lease financing obligations | ||
Deferred income taxes | $ 10,168 | |
Aquired above market lease | 2,453 | |
Total liabilities assumed | 12,621 | |
Net identifiable assets acquired | (8,501) | |
Goodwill | $ 8,501 | |
Net assets acquired |
Acquisitions (Schedule of Pro F
Acquisitions (Schedule of Pro Forma Information Related to Acquisition) (Details) - Carpathia Hosting, Inc. [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pro forma revenue | $ 352,529 | $ 299,906 | $ 250,338 |
Pro forma net income (loss) | $ 28,109 | $ 12,919 | $ (9,592) |
Real Estate Assets and Constr48
Real Estate Assets and Construction in Progress (Summary of Properties Owned or Leased by the Company) (Details) $ in Thousands | Dec. 31, 2015USD ($)property | Dec. 31, 2014USD ($) | |
Real Estate Properties [Line Items] | |||
Land | $ 57,112 | $ 48,577 | |
Buildings and improvements | 1,180,386 | 914,286 | |
Construction in progress | 345,655 | 214,719 | |
Total cost | 1,583,153 | 1,177,582 | |
Owned Properties [Member] | |||
Real Estate Properties [Line Items] | |||
Land | 55,982 | 48,577 | |
Buildings and improvements | 1,061,247 | 886,116 | |
Construction in progress | 336,034 | 213,772 | |
Total cost | 1,453,263 | 1,148,465 | |
Owned Properties [Member] | Suwanee, Georgia (Atlanta-Suwanee) [Member] | |||
Real Estate Properties [Line Items] | |||
Land | 3,521 | 3,521 | |
Buildings and improvements | 150,028 | 138,991 | |
Construction in progress | 15,330 | 6,345 | |
Total cost | 168,879 | 148,857 | |
Owned Properties [Member] | Atlanta, Georgia (Atlanta-Metro) [Member] | |||
Real Estate Properties [Line Items] | |||
Land | 15,397 | 15,397 | |
Buildings and improvements | 406,190 | 356,122 | |
Construction in progress | 41,835 | 22,693 | |
Total cost | $ 463,422 | $ 394,212 | |
Owned Properties [Member] | Santa Clara, California [Member] | |||
Real Estate Properties [Line Items] | |||
Land | [1] | ||
Buildings and improvements | [1] | $ 94,437 | $ 90,332 |
Construction in progress | [1] | 1,379 | 650 |
Total cost | [1] | 95,816 | 90,982 |
Owned Properties [Member] | Richmond, Virginia [Member] | |||
Real Estate Properties [Line Items] | |||
Land | 2,180 | 2,180 | |
Buildings and improvements | 208,654 | 127,080 | |
Construction in progress | 85,771 | 71,794 | |
Total cost | 296,605 | 201,054 | |
Owned Properties [Member] | Sacramento, California [Member] | |||
Real Estate Properties [Line Items] | |||
Land | 1,481 | 1,481 | |
Buildings and improvements | 61,462 | 60,094 | |
Construction in progress | 73 | 278 | |
Total cost | 63,016 | 61,853 | |
Owned Properties [Member] | Princeton, New Jersey [Member] | |||
Real Estate Properties [Line Items] | |||
Land | 20,700 | 17,976 | |
Buildings and improvements | 32,708 | 35,951 | |
Construction in progress | 422 | 90 | |
Total cost | 53,830 | 54,017 | |
Owned Properties [Member] | Dallas-Fort Worth, Texas [Member] | |||
Real Estate Properties [Line Items] | |||
Land | 8,590 | 5,808 | |
Buildings and improvements | 71,783 | 44,053 | |
Construction in progress | 120,331 | 89,982 | |
Total cost | $ 200,704 | $ 139,843 | |
Owned Properties [Member] | Chicago, Illinois [Member] | |||
Real Estate Properties [Line Items] | |||
Land | |||
Construction in progress | $ 70,749 | $ 21,786 | |
Total cost | 70,749 | 21,786 | |
Owned Properties [Member] | Miami, Florida [Member] | |||
Real Estate Properties [Line Items] | |||
Land | 1,777 | 1,777 | |
Buildings and improvements | 30,554 | 28,786 | |
Construction in progress | 144 | 129 | |
Total cost | 32,475 | 30,692 | |
Owned Properties [Member] | Lenexa, Kansas [Member] | |||
Real Estate Properties [Line Items] | |||
Land | 437 | 437 | |
Buildings and improvements | $ 3,511 | 3,298 | |
Construction in progress | 25 | ||
Total cost | $ 3,948 | $ 3,760 | |
Owned Properties [Member] | Wichita, Kansas [Member] | |||
Real Estate Properties [Line Items] | |||
Land | |||
Buildings and improvements | $ 1,409 | ||
Construction in progress | |||
Total cost | $ 1,409 | ||
Owned Properties [Member] | Deluth, Georgia [Member] | |||
Real Estate Properties [Line Items] | |||
Land | 1,899 | ||
Buildings and improvements | $ 1,920 | ||
Construction in progress | |||
Total cost | $ 3,819 | ||
Leased Properties [Member] | |||
Real Estate Properties [Line Items] | |||
Land | 1,130 | ||
Buildings and improvements | 119,139 | $ 28,170 | |
Construction in progress | 9,621 | 947 | |
Total cost | $ 129,890 | $ 29,117 | |
Leased Properties [Member] | Jersey City, New Jersey [Member] | |||
Real Estate Properties [Line Items] | |||
Land | |||
Buildings and improvements | $ 28,228 | $ 27,318 | |
Construction in progress | 2,421 | 920 | |
Total cost | $ 30,649 | $ 28,238 | |
Leased Properties [Member] | Overland Park, Kansas [Member] | |||
Real Estate Properties [Line Items] | |||
Land | |||
Buildings and improvements | [2] | $ 922 | $ 852 |
Construction in progress | 4 | 27 | |
Total cost | 926 | $ 879 | |
Leased Properties [Member] | Carpathia Properties [Member] | |||
Real Estate Properties [Line Items] | |||
Land | [3] | 1,130 | |
Buildings and improvements | [3] | 89,989 | |
Construction in progress | [3] | 7,196 | |
Total cost | [3] | $ 98,315 | |
Number of facilities leased | property | 13 | ||
[1] | Owned facility subject to long-term ground sublease. | ||
[2] | This does not include the portion of the business that is used for QTS office space or other real estate not used by customers.*** Includes 13 facilities. All facilities are leased, including those subject to capital leases. | ||
[3] | Includes 13 facilities. All facilities are leased, including those subject to capital leases. |
Debt (Unsecured Credit Facility
Debt (Unsecured Credit Facility Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Oct. 31, 2015 | Dec. 31, 2014 | Jul. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | |
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Dec. 17, 2019 | |||||
Credit facility availability | $ 600,000,000 | |||||
Maximum percentage of unencumbered asset pool capitalized value | 60.00% | |||||
Unencumbered asset pool debt yield limit | 14.00% | |||||
Richmond Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Current revolving credit facility | $ 120,000,000 | |||||
Letter of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Letter of credit outstanding | $ 2,000,000 | |||||
Unsecured Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility accordion feature | $ 100,000,000 | |||||
Minimum [Member] | Richmond Credit Facility [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Leverage ratio | 2.10% | |||||
Maximum [Member] | Richmond Credit Facility [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Leverage ratio | 2.85% | |||||
Unsecured Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility agreement date | May 1, 2013 | |||||
Credit facility maximum borrowing capacity | $ 900,000,000 | $ 650,000,000 | $ 900,000,000 | $ 575,000,000 | ||
Line of credit facility accordion feature | 200,000,000 | |||||
Increase the amount of line of credit facility | 250,000,000 | |||||
Maximum the credit facility may be increased up until | 1,100,000,000 | |||||
Letter of credit outstanding | $ 524,000,000 | |||||
Credit facility covenant terms | (i) the outstanding principal balance of the loans and letter of credit liabilities cannot exceed the unencumbered asset pool availability (as defined in the third amended and restated credit agreement), (ii) a maximum leverage ratio of total indebtedness to gross asset value (as defined in the third amended and restated credit agreement) not in excess of 60%, (iii) a minimum fixed charge coverage ratio (defined as the ratio of consolidated EBITDA, subject to certain adjustments, to consolidated fixed charges) for the prior two most recently-ended calendar quarters of not less than 1.70 to 1.00, (iv) tangible net worth of at least $958 million plus 80% of the sum of net equity offering proceeds and the value of interests in the Operating Partnership issued upon contribution of assets to the Operating Partnership or its subsidiaries, (v) unhedged variable rate debt not greater than 35% of gross asset value and (vi) a maximum distribution payout ratio of the greater of (a) 95% of the Company's "funds from operations" (as defined in the agreement) and (b) the amount required for QTS to qualify as a REIT under the Code. | |||||
Minimum tangible net worth | $ 958,000,000 | |||||
Line of credit facility weighted average interest rate outstanding percentage | 1.84% | |||||
Credit facility covenant, maximum distribution payout ratio of funds from operations | 95.00% | |||||
Percentage change in maximum leverage ratio required for incremental decrease in interest rate | 5.00% | |||||
Unsecured Credit Facility [Member] | Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility maximum borrowing capacity | $ 100,000,000 | $ 150,000,000 | $ 225,000,000 | |||
Unsecured credit facility term | 5 years | 5 years | ||||
Maturity date | Dec. 17, 2019 | |||||
Letter of credit outstanding | $ 300,000,000 | |||||
Repayment of debt | $ 75,000,000 | |||||
Unsecured Credit Facility [Member] | Term Loan Maturing April 27, 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility maximum borrowing capacity | $ 150,000,000 | |||||
Maturity date | Apr. 27, 2021 | |||||
Unsecured Credit Facility [Member] | Term Loan Maturing December 20, 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility maximum borrowing capacity | $ 150,000,000 | |||||
Maturity date | Dec. 17, 2020 | |||||
Unsecured Credit Facility [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility maximum borrowing capacity | $ 600,000,000 | $ 550,000,000 | $ 350,000,000 | |||
Unsecured credit facility term | 4 years | 4 years | ||||
Debt extension period | 1 year | 1 year | 1 year | |||
Maturity date | Dec. 17, 2019 | |||||
Letter of credit outstanding | $ 224,000,000 | |||||
Unsecured Credit Facility [Member] | Letter of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility maximum borrowing capacity | $ 30,000,000 | |||||
Unsecured Credit Facility [Member] | Operating Partnership [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility covenant, percentage ownership requirements in addition to minimum tangible net worth | 80.00% | |||||
Unsecured Credit Facility [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Fixed charge coverage ratio | 170.00% | |||||
Unsecured Credit Facility [Member] | Minimum [Member] | Term Loan [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument spread on variable interest rate | 1.50% | |||||
Unsecured Credit Facility [Member] | Minimum [Member] | Term Loan [Member] | Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument spread on variable interest rate | 0.50% | |||||
Unsecured Credit Facility [Member] | Minimum [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Dec. 17, 2018 | |||||
Unsecured Credit Facility [Member] | Minimum [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument spread on variable interest rate | 1.55% | |||||
Unsecured Credit Facility [Member] | Minimum [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument spread on variable interest rate | 0.55% | |||||
Unsecured Credit Facility [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Leverage ratio | 60.00% | |||||
Ratio of indebtedness to net capital | 35 | |||||
Unsecured Credit Facility [Member] | Maximum [Member] | Term Loan [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument spread on variable interest rate | 2.10% | |||||
Unsecured Credit Facility [Member] | Maximum [Member] | Term Loan [Member] | Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument spread on variable interest rate | 1.10% | |||||
Unsecured Credit Facility [Member] | Maximum [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Dec. 17, 2019 | |||||
Unsecured Credit Facility [Member] | Maximum [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument spread on variable interest rate | 2.15% | |||||
Unsecured Credit Facility [Member] | Maximum [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument spread on variable interest rate | 1.15% |
Debt (Senior Notes) (Details)
Debt (Senior Notes) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | 17 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2015 | Jul. 23, 2014 | |
Unsecured Credit Facility [Member] | Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date | Dec. 17, 2019 | |||
Unsecured term loan outstanding | $ 75,000,000 | |||
Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 300,000,000 | |||
Interest rate | 5.875% | 5.875% | 5.875% | |
Senior notes due | 2,022 | 2,022 | ||
Maturity date | Aug. 1, 2022 | |||
Percentage of issued price equal to face value | 99.211% | 99.211% | ||
Notes issuance date | Jul. 23, 2014 |
Debt (Richmond Credit Facility
Debt (Richmond Credit Facility Narrative) (Details) - Richmond Credit Facility [Member] | 19 Months Ended |
Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |
Credit facility, maturity date | Jun. 30, 2019 |
Increased borrowing capacity after considering accordion feature | $ 200,000,000 |
Current revolving credit facility | $ 120,000,000 |
Maximum [Member] | LIBOR [Member] | |
Debt Instrument [Line Items] | |
Leverage ratio | 2.85% |
Minimum [Member] | LIBOR [Member] | |
Debt Instrument [Line Items] | |
Leverage ratio | 2.10% |
Debt (Atlanta-Metro Equipment L
Debt (Atlanta-Metro Equipment Loan Narrative) (Details) - Atlanta-Metro Equipment Loan [Member] $ in Millions | 63 Months Ended |
Jun. 30, 2015USD ($) | |
Debt Instrument [Line Items] | |
Loan agreement amount of loan | $ 25 |
Loan agreement interest rate | 6.85% |
Member advances, maturity date | Jun. 1, 2020 |
Debt (Outstanding Debt Includin
Debt (Outstanding Debt Including Capital Leases) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | 17 Months Ended | 63 Months Ended | |
Oct. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||||
Weighted average coupon interest rate | 3.31% | 3.31% | |||
Capital lease and lease financing obligations | $ 49,761 | $ 49,761 | $ 13,062 | ||
Total debt and lease obligations | $ 871,739 | $ 871,739 | 637,229 | ||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Weighted average coupon interest rate | 1.82% | 1.82% | |||
Maturity date | Dec. 17, 2019 | ||||
Outstanding debt | $ 224,002 | $ 224,002 | 139,838 | ||
Term Loan I [Member] | |||||
Debt Instrument [Line Items] | |||||
Weighted average coupon interest rate | 1.78% | 1.78% | |||
Maturity date | Dec. 17, 2020 | ||||
Outstanding debt | $ 150,000 | $ 150,000 | $ 100,000 | ||
Term Loan II [Member] | |||||
Debt Instrument [Line Items] | |||||
Weighted average coupon interest rate | 1.92% | 1.92% | |||
Maturity date | Apr. 27, 2021 | ||||
Outstanding debt | $ 150,000 | $ 150,000 | |||
Richmond Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt | $ 70,000 | ||||
Unsecured Credit Facility [Member] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Dec. 17, 2019 | ||||
Senior Notes Net of Discount [Member] | |||||
Debt Instrument [Line Items] | |||||
Weighted average coupon interest rate | 5.88% | 5.88% | |||
Maturity date | Aug. 1, 2022 | ||||
Outstanding debt | $ 297,976 | $ 297,976 | 297,729 | ||
Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Aug. 1, 2022 | ||||
Atlanta-Metro Equipment Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Jun. 1, 2020 | ||||
Outstanding debt | 16,600 | ||||
Capital Lease and Lease Financing Obligations [Member] | |||||
Debt Instrument [Line Items] | |||||
Weighted average coupon interest rate | 3.35% | 3.35% | |||
Maturity date decription | 2016 - 2025 | ||||
Capital lease and lease financing obligations | $ 49,761 | $ 49,761 | $ 13,062 |
Debt (Annual Remaining Principa
Debt (Annual Remaining Principal Payment) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Debt [Abstract] | |
2,016 | |
2,017 | |
2,018 | |
2,019 | $ 224,002 |
2,020 | 150,000 |
Thereafter | 450,000 |
Total | $ 824,002 |
Debt (Lease Narrative) (Details
Debt (Lease Narrative) (Details) $ in Thousands | 3 Months Ended | 7 Months Ended | 12 Months Ended | 34 Months Ended | ||
Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($)agreement | Dec. 31, 2015USD ($)agreement | Dec. 31, 2015USD ($)agreement | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |
Capital Leased Assets [Line Items] | ||||||
Capital lease and lease financing obligations | $ 49,761 | $ 49,761 | $ 49,761 | $ 13,062 | ||
Capital lease and lease financing obligations assumed | 43,832 | |||||
Lease financing obligations | 22,800 | 22,800 | 22,800 | |||
Building and Equipment [Member] | ||||||
Capital Leased Assets [Line Items] | ||||||
Lease financing obligations | 18,900 | 18,900 | 18,900 | |||
Carpathia Hosting, Inc. [Member] | ||||||
Capital Leased Assets [Line Items] | ||||||
Capital lease and lease financing obligations | 26,900 | 26,900 | 26,900 | |||
Capital lease and lease financing obligations | 43,832 | $ 43,832 | $ 43,832 | $ 43,832 | ||
Capital lease and lease financing obligations assumed | $ 16,600 | |||||
Number of lease agreements | agreement | 2 | 2 | 2 | |||
Lease financing obligations | $ 22,800 | $ 22,800 | $ 22,800 | |||
Oustandind financing agreement | 2,300 | 2,300 | 2,300 | |||
Deferred gain of lease financing obligations | 1,600 | |||||
Lease financing monthly principal and interest payment | 200 | |||||
Carpathia Hosting, Inc. [Member] | Sale-Leaseback Transaction [Member] | ||||||
Capital Leased Assets [Line Items] | ||||||
Lease financing obligations | 20,600 | 20,600 | 20,600 | |||
Carpathia Hosting, Inc. [Member] | Tenant Improvement Allowance [Member] | ||||||
Capital Leased Assets [Line Items] | ||||||
Lease financing obligations | $ 4,800 | $ 4,800 | $ 4,800 | |||
Lease financing expiration date | Feb. 28, 2019 | |||||
Minimum [Member] | Carpathia Hosting, Inc. [Member] | ||||||
Capital Leased Assets [Line Items] | ||||||
Lease expiration year | 2,018 | |||||
Monthly lease payment | $ 200 | |||||
Maximum [Member] | Carpathia Hosting, Inc. [Member] | ||||||
Capital Leased Assets [Line Items] | ||||||
Lease expiration year | 2,019 | |||||
Monthly lease payment | $ 500 | |||||
Maximum [Member] | Carpathia Hosting, Inc. [Member] | Tenant Improvement Allowance [Member] | ||||||
Capital Leased Assets [Line Items] | ||||||
Lease financing monthly principal and interest payment | $ 100 |
Debt (Future Payment Obligation
Debt (Future Payment Obligations) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Debt [Abstract] | |
2,016 | $ 12,558 |
2,017 | 12,388 |
2,018 | 8,804 |
2,019 | 2,461 |
2,020 | 2,190 |
Thereafter | 11,360 |
Total lease obligations | $ 49,761 |
Interest Rate Derivative Inst57
Interest Rate Derivative Instruments (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 29, 2012 | Feb. 08, 2012 | |
Derivative [Line Items] | ||||||
Unrealized gains or losses on cash flow hedge derivative effective portion | $ 0 | $ 0 | $ 300 | |||
Interest expense related to payments on interest rate swaps | $ 2,049 | 21,289 | 15,308 | |||
Interest Rate Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Interest expense related to payments on interest rate swaps | 0 | 500 | $ 500 | |||
Interest Rate Swap [Member] | Fair Value Measurements, Level 2 [Member] | ||||||
Derivative [Line Items] | ||||||
Interest rate swap liability recorded at fair value | $ 0 | $ 0 | ||||
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative inception date | Feb. 8, 2012 | |||||
Derivative maturity date | Sep. 28, 2014 | |||||
Derivative instruments, notional amount | $ 150,000 | $ 150,000 |
Partners' Capital, Equity and58
Partners' Capital, Equity and Incentive Compensation Plans (Narrative) (Details) | Feb. 22, 2016$ / shares | Jan. 06, 2016$ / shares | Jan. 06, 2016$ / shares | Mar. 02, 2015$ / sharesshares | Mar. 31, 2015shares | Dec. 31, 2015USD ($)item$ / sharesshares | Sep. 30, 2015$ / sharesshares | Jun. 30, 2015USD ($)$ / sharesshares | Mar. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014$ / shares | Sep. 30, 2014$ / shares | Jun. 30, 2014$ / shares | Mar. 31, 2014$ / shares | Dec. 31, 2013USD ($)$ / shares | Dec. 31, 2015USD ($)itemshares | Dec. 31, 2015USD ($)itemsecurity$ / sharesshares | Dec. 31, 2014$ / shares | Nov. 30, 2015$ / sharesshares | Aug. 14, 2015$ / sharesshares | Jun. 17, 2015shares | Jun. 05, 2015$ / sharesshares | May. 04, 2015shares | |
Partners Capital And Distributions [Line Items] | |||||||||||||||||||||||
Proceeds from sale of stock | $ | $ 203,400,000 | $ 166,000,000 | |||||||||||||||||||||
Capital contributions | $ | $ 203,400,000 | $ 166,000,000 | |||||||||||||||||||||
Number of votes per share | item | 50 | 50 | 50 | ||||||||||||||||||||
Equity based compensation expense unrecognized | $ | $ 14,700,000 | $ 14,700,000 | $ 14,700,000 | ||||||||||||||||||||
Equity based compensation expense vesting period | 4 years | ||||||||||||||||||||||
Equity based compensation awards intrinsic value | $ | $ 60,300,000 | $ 60,300,000 | $ 60,300,000 | ||||||||||||||||||||
Dividend paid to common stockholders | $ / shares | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.29 | $ 0.29 | $ 0.29 | $ 0.29 | $ 0.24 | [1] | $ 0.29 | $ 1.25 | $ 1.11 | |||||||||||
Dividends payable, date payable | Oct. 6, 2015 | Jul. 8, 2015 | Apr. 7, 2015 | Jan. 7, 2015 | Oct. 7, 2014 | Jul. 8, 2014 | Apr. 8, 2014 | Jan. 7, 2014 | |||||||||||||||
Dividends payable, date of record | Sep. 18, 2015 | Jun. 19, 2015 | Mar. 20, 2015 | Dec. 19, 2014 | Sep. 19, 2014 | Jun. 20, 2014 | Mar. 20, 2014 | Dec. 20, 2013 | |||||||||||||||
Net proceeds from issuance of shares | $ | $ 279,000,000 | ||||||||||||||||||||||
QTS Realty Trust, Inc. Employee Stock Purchase Plan [Member] | |||||||||||||||||||||||
Partners Capital And Distributions [Line Items] | |||||||||||||||||||||||
Shares reserved for purchase under plan | 250,000 | 250,000 | |||||||||||||||||||||
Subsequent Event [Member] | |||||||||||||||||||||||
Partners Capital And Distributions [Line Items] | |||||||||||||||||||||||
Dividend paid to common stockholders | $ / shares | $ 0.32 | $ 0.32 | |||||||||||||||||||||
Dividends payable, date payable | Apr. 5, 2016 | Jan. 6, 2016 | Jan. 6, 2016 | ||||||||||||||||||||
Dividends payable, date declared | Feb. 22, 2016 | ||||||||||||||||||||||
Cash dividend payable per common share | $ / shares | $ 0.36 | ||||||||||||||||||||||
Dividends payable, date of record | Mar. 18, 2016 | Dec. 17, 2015 | Dec. 17, 2015 | ||||||||||||||||||||
Class O Units [Member] | |||||||||||||||||||||||
Partners Capital And Distributions [Line Items] | |||||||||||||||||||||||
Nonvested awards outstanding | 500,000 | 500,000 | 500,000 | ||||||||||||||||||||
Common Class A [Member] | |||||||||||||||||||||||
Partners Capital And Distributions [Line Items] | |||||||||||||||||||||||
Stock transaction date | Nov. 30, 2015 | Aug. 14, 2015 | Jun. 5, 2015 | Mar. 2, 2015 | |||||||||||||||||||
Sale of stock, price per share | $ / shares | $ 37 | ||||||||||||||||||||||
Shares issued | 5,000,000 | 5,750,000 | |||||||||||||||||||||
Common Class A [Member] | Underwriters [Member] | |||||||||||||||||||||||
Partners Capital And Distributions [Line Items] | |||||||||||||||||||||||
Sale of stock, price per share | $ / shares | $ 41.625 | $ 41 | |||||||||||||||||||||
Option to purchase share of common stock | 326,250 | 360,000 | 1,402,500 | ||||||||||||||||||||
Shares issued | 261,000 | ||||||||||||||||||||||
Common Class A [Member] | General Atlantic REIT, Inc. [Member] | |||||||||||||||||||||||
Partners Capital And Distributions [Line Items] | |||||||||||||||||||||||
Sale of stock, price per share | $ / shares | $ 34.75 | ||||||||||||||||||||||
Shares of stock sold by stockholder | 4,350,000 | 4,350,000 | |||||||||||||||||||||
Chief Executive Officer [Member] | |||||||||||||||||||||||
Partners Capital And Distributions [Line Items] | |||||||||||||||||||||||
Percentage of operating partnership unit exchanged | 2.00% | ||||||||||||||||||||||
Underwriters [Member] | Common Class A [Member] | |||||||||||||||||||||||
Partners Capital And Distributions [Line Items] | |||||||||||||||||||||||
Option to purchase share of common stock | 1,050,000 | ||||||||||||||||||||||
Qualitytech, LP [Member] | |||||||||||||||||||||||
Partners Capital And Distributions [Line Items] | |||||||||||||||||||||||
Number of classes of partnership units outstanding | security | 3 | ||||||||||||||||||||||
GA QTS Interholdco, LLC [Member] | Common Class A [Member] | |||||||||||||||||||||||
Partners Capital And Distributions [Line Items] | |||||||||||||||||||||||
Sale of stock, price per share | $ / shares | $ 41.625 | $ 41 | |||||||||||||||||||||
Shares of stock sold by stockholder | 2,175,000 | 2,400,000 | 1,250,000 | ||||||||||||||||||||
Minimum [Member] | QTS Realty Trust, Inc. Employee Stock Purchase Plan [Member] | |||||||||||||||||||||||
Partners Capital And Distributions [Line Items] | |||||||||||||||||||||||
Monthly deduction from eligible employees for plan | $ | $ 40 | ||||||||||||||||||||||
Maximum [Member] | QTS Realty Trust, Inc. Employee Stock Purchase Plan [Member] | |||||||||||||||||||||||
Partners Capital And Distributions [Line Items] | |||||||||||||||||||||||
Monthly deduction from eligible employees for plan | $ | $ 2,000 | ||||||||||||||||||||||
Restricted Class A Common Stock [Member] | |||||||||||||||||||||||
Partners Capital And Distributions [Line Items] | |||||||||||||||||||||||
Nonvested awards outstanding | 400,000 | 400,000 | 400,000 | ||||||||||||||||||||
Options to purchase Class A common stock [Member] | |||||||||||||||||||||||
Partners Capital And Distributions [Line Items] | |||||||||||||||||||||||
Nonvested awards outstanding | 400,000 | 400,000 | 400,000 | ||||||||||||||||||||
2013 Equity Incentive Plan [Member] | |||||||||||||||||||||||
Partners Capital And Distributions [Line Items] | |||||||||||||||||||||||
Authorized shares to be issued under the plan | 1,750,000 | 1,750,000 | 1,750,000 | 4,750,000 | |||||||||||||||||||
Additional shares available for issuance under plan approved by Board of Directors | 3,000,000 | ||||||||||||||||||||||
[1] | The per common share and per unit rate is prorated. It covers the period beginning October 15, 2013 (the closing date of the IPO) through December 31, 2013 and is based on a full quarter distribution of $0.29 per common share and per unit. |
Partners' Capital, Equity and59
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) - $ / shares | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
2013 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Beginning balance, Weighted average exercise price units | $ 29.13 | $ 21 | |||
Weighted average exercise price units, Granted | 36.71 | 32.66 | $ 21 | ||
Weighted average exercise price units, Exercised | $ 28.37 | [1] | $ 21 | [1] | |
Weighted average exercise price units, Released from restriction | [2] | [2] | |||
Weighted average exercise price units, Cancelled/Expired | $ 28.33 | [3] | $ 21 | ||
Ending balance, Weighted average exercise price units | 33.82 | 29.13 | $ 21 | ||
Beginning balance, Weighted average fair value | 4.10 | 3.50 | |||
Weighted average fair value, Granted | 8.03 | 4.96 | $ 3.50 | ||
Weighted average fair value, Exercised | $ 3.63 | [1] | $ 3.52 | [1] | |
Weighted average fair value, Released from restriction | [2] | [2] | |||
Weighted average fair value, Cancelled/Expired | $ 3.52 | [3] | $ 3.52 | $ 3.52 | |
Ending balance, Weighted average fair value | 5.56 | 4.10 | $ 3.50 | ||
Beginning balance, Weighted average exercise price options outstanding | 22.87 | 21 | |||
Weighted average exercise price options outstanding, Granted | 36.16 | 25.59 | $ 21 | ||
Weighted average exercise price options outstanding, Exercised | $ 21.30 | [1] | $ 21 | [1] | |
Weighted average exercise price options outstanding, Released from restriction | [2] | [2] | |||
Weighted average exercise price options outstanding, Cancelled/Expired | $ 21 | [3] | $ 21 | ||
Ending balance, Weighted average exercise price options outstanding | $ 27.80 | $ 22.87 | $ 21 | ||
2013 Equity Incentive Plan [Member] | Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Beginning balance, Options Outstanding | 584,949 | 367,910 | |||
Options, Granted | 317,497 | 238,039 | 370,410 | ||
Options, Exercised | (23,157) | [1] | (3,000) | [1] | |
Options, Released from restriction | [2] | [2] | |||
Options, Cancelled/Expired | (11,407) | [3] | (18,000) | (2,500) | |
Ending balance, Options Outstanding | 867,882 | 584,949 | 367,910 | ||
2013 Equity Incentive Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Beginning balance, Number of units | 246,785 | 108,629 | |||
Number of units, Granted | 230,271 | 172,102 | 108,629 | ||
Number of units, Exercised | (54,400) | [1] | 25,786 | [1] | |
Number of units, Released from restriction | [2] | [2] | |||
Number of units, Cancelled/Expired | (27,748) | [3] | (8,160) | ||
Ending balance, Number of units | 394,908 | 246,785 | 108,629 | ||
2010 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Beginning balance, Weighted average fair value | $ 3.75 | $ 3.84 | $ 2.84 | ||
Weighted average fair value, Granted | $ 10.62 | ||||
Weighted average fair value, Exercised | $ 4.18 | [1] | $ 4.75 | [1] | |
Weighted average fair value, Released from restriction | [2] | [2] | |||
Weighted average fair value, Cancelled/Expired | $ 3.92 | [3] | $ 5.23 | $ 5.31 | |
Ending balance, Weighted average fair value | $ 3.68 | $ 3.75 | $ 3.84 | ||
Restricted Class A Common Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Units surrendered | 26,298 | ||||
Class O Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Ending balance, Number of units | 500,000 | ||||
Class O Units [Member] | 2010 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Beginning balance, Number of units | 1,518,717 | 1,622,747 | 1,471,943 | ||
Number of units, Granted | 224,244 | ||||
Number of units, Exercised | (222,499) | [1] | (15,750) | [1] | |
Number of units, Released from restriction | [2] | [2] | |||
Number of units, Cancelled/Expired | (3,319) | [3] | (88,280) | (73,440) | |
Ending balance, Number of units | 1,292,899 | 1,518,717 | 1,622,747 | ||
Beginning balance, Weighted average exercise price units | $ 23.49 | $ 23.44 | $ 23.09 | ||
Weighted average exercise price units, Granted | $ 25 | ||||
Weighted average exercise price units, Exercised | $ 22.02 | [1] | $ 20.71 | [1] | |
Weighted average exercise price units, Released from restriction | [2] | [2] | |||
Weighted average exercise price units, Cancelled/Expired | $ 20 | [3] | $ 23.01 | ||
Ending balance, Weighted average exercise price units | $ 23.76 | $ 23.49 | $ 23.44 | ||
Class RS Units [Member] | 2010 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Beginning balance, Number of units | 74,625 | 173,750 | 178,750 | ||
Number of units, Granted | |||||
Number of units, Exercised | [1] | [1] | |||
Number of units, Released from restriction | (34,750) | [2] | (99,125) | [2] | (5,000) |
Number of units, Cancelled/Expired | [3] | ||||
Ending balance, Number of units | 39,875 | 74,625 | 173,750 | ||
Beginning balance, Weighted average exercise price units | $ 23.49 | $ 24.31 | $ 24.20 | ||
Weighted average exercise price units, Granted | |||||
Weighted average exercise price units, Exercised | [1] | [1] | |||
Weighted average exercise price units, Released from restriction | $ 25 | [2] | $ 24.94 | [2] | $ 20 |
Weighted average exercise price units, Cancelled/Expired | [3] | ||||
Ending balance, Weighted average exercise price units | $ 22.18 | $ 23.49 | $ 24.31 | ||
[1] | This represents 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. | ||||
[2] | This represents Class RS units that upon vesting have converted to Operating Partnership units. | ||||
[3] | Includes 26,298 of restricted Class A common stock surrendered by certain employees to satisfy their statutory minimum federal and state tax obligations associated with the vesting of restricted common stock. |
Partners' Capital, Equity and60
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) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock granted | $ 21 | ||
Expected volatility | 33.00% | 33.00% | |
Expected dividend yield | 4.55% | 5.50% | |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock granted | $ 35.81 | $ 25.51 | |
Fair value of options granted | $ 8 | $ 4.94 | $ 3.45 |
Expected term (years) | 5 years 6 months | 5 years 6 months | 5 years 6 months |
Expected volatility | 32.00% | ||
Expected dividend yield | 3.40% | 4.02% | |
Expected risk-free interest rates | 1.67% | 1.70% | 1.40% |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock granted | $ 37.69 | $ 35.51 | |
Fair value of options granted | $ 8.77 | $ 5.98 | $ 3.52 |
Expected term (years) | 6 years 1 month 6 days | 6 years 1 month 6 days | 7 years |
Expected volatility | 4.55% | 40.00% | |
Expected dividend yield | 3.57% | ||
Expected risk-free interest rates | 1.94% | 1.90% | 1.80% |
Class O Units [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock granted | $ 10.26 | ||
Class O Units [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock granted | $ 10.92 |
Partners' Capital, Equity and61
Partners' Capital, Equity and Incentive Compensation Plans (Summary of Information About Awards Outstanding) (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Operating Partnership [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards Outstanding | 1,332,774 |
QTS Realty Trust, Inc Awards Outstanding [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards Outstanding | 1,262,790 |
QTS Realty Trust, Inc Awards Outstanding [Member] | Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards Outstanding | 394,908 |
Remaining term of awards | 3 years |
QTS Realty Trust, Inc Awards Outstanding [Member] | Options to purchase Class A common stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Lower limit of exercise price | $ / shares | $ 21 |
Upper limit of exercise price | $ / shares | $ 37.69 |
Awards Outstanding | 867,882 |
Remaining term of awards | 1 year |
Class O Units [Member] | Operating Partnership [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Lower limit of exercise price | $ / shares | $ 20 |
Upper limit of exercise price | $ / shares | $ 25 |
Awards Outstanding | 1,292,899 |
Remaining term of awards | 1 year |
Class RS Units [Member] | Operating Partnership [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards Outstanding | 39,875 |
Remaining term of awards | 0 years |
Partners' Capital, Equity and62
Partners' Capital, Equity and Incentive Compensation Plans (Schedule of Quarterly Cash Dividends) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Partners' Capital, Equity and Incentive Compensation Plans [Abstract] | ||||||||||||
Record Date | Sep. 18, 2015 | Jun. 19, 2015 | Mar. 20, 2015 | Dec. 19, 2014 | Sep. 19, 2014 | Jun. 20, 2014 | Mar. 20, 2014 | Dec. 20, 2013 | ||||
Payment Date | Oct. 6, 2015 | Jul. 8, 2015 | Apr. 7, 2015 | Jan. 7, 2015 | Oct. 7, 2014 | Jul. 8, 2014 | Apr. 8, 2014 | Jan. 7, 2014 | ||||
Per Common Share and Per Unit Rate | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.29 | $ 0.29 | $ 0.29 | $ 0.29 | $ 0.24 | [1] | $ 0.29 | $ 1.25 | $ 1.11 |
Dividend/Distribution Amount | $ 15.3 | $ 15.3 | $ 13.4 | $ 10.7 | $ 10.5 | $ 10.9 | $ 10.8 | $ 9 | $ 54.7 | $ 41.2 | ||
[1] | The per common share and per unit rate is prorated. It covers the period beginning October 15, 2013 (the closing date of the IPO) through December 31, 2013 and is based on a full quarter distribution of $0.29 per common share and per unit. |
Related Party Transactions (Sum
Related Party Transactions (Summary of Related Party Transactions) (Details) - Affiliated Entity [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||
Tax, utility, insurance and other reimbursement | $ 589 | $ 692 | $ 336 |
Rent expense | 1,014 | 1,026 | 977 |
Capital assets acquired | 261 | 266 | 625 |
Total | $ 1,864 | $ 1,984 | $ 1,938 |
Employee Benefit Plan (Narrativ
Employee Benefit Plan (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage contribution from employees | 4.00% | ||
Employer Contribution on employee benefit plan | $ 1.3 | $ 0.6 | $ 0.3 |
Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage contribution from employees | 6.00% | ||
First 4% of Employee Contribution [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contribution rate as a percentage of employee contribution | 25.00% | 25.00% | |
Percentage contribution from employees | 4.00% | 4.00% | |
Second 2% of Employee Contribution [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contribution rate as a percentage of employee contribution | 50.00% | ||
Percentage contribution from employees | 2.00% | ||
Between 4% and 6% of Employee Contribution [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contribution rate as a percentage of employee contribution | 50.00% | ||
Between 4% and 6% of Employee Contribution [Member] | Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage contribution from employees | 4.00% | ||
Between 4% and 6% of Employee Contribution [Member] | Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage contribution from employees | 6.00% | ||
First 6% of Employee Contribution [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contribution rate as a percentage of employee contribution | 50.00% | ||
Percentage contribution from employees | 6.00% |
Noncontrolling Interest (Narrat
Noncontrolling Interest (Narrative) (Details) | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2015shares | Mar. 31, 2015shares | Dec. 31, 2015shares | Dec. 31, 2014security | Oct. 31, 2014 | |
Redeemable units conversion ratio | security | 1 | ||||
Units redeemed for common stock | 830,000 | ||||
Shares issued | 5,750,000 | 5,000,000 | |||
Qualitytech, LP [Member] | |||||
Quality Tech LP ownership percentage in operating partnership | 14.20% | 21.20% |
Earnings per Share (Narrative)
Earnings per Share (Narrative) (Details) - $ / shares | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Weighted average shares outstanding-diluted | 36,794,215 | 45,353,170 | 37,133,584 | |
Antidilutive shares excluded from the computation of diluted net earning per share | $ 0 | $ 0 | ||
Class O Units [Member] | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Weighted average shares outstanding-diluted | 1,113,169 | |||
Antidilutive shares excluded from the computation of diluted net earning per share, amount per share | 25 |
Earnings per Share (Computation
Earnings per Share (Computation of Basic and Diluted Net Income per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||||
Net income available to common stockholders - basic | $ 4,603 | $ 7,009 | $ 4,632 | $ 4,082 | $ 4,627 | $ 3,157 | $ 3,090 | $ 4,198 | $ 3,154 | $ 20,326 | $ 15,072 | ||
Effect of net income attributable to noncontrolling interests | 848 | 3,803 | 4,031 | ||||||||||
Net income available to common stockholders - diluted | $ 4,002 | $ 24,129 | $ 19,103 | ||||||||||
Weighted average shares outstanding-basic | 28,972,774 | 37,568,109 | 29,054,576 | ||||||||||
Effect of Class A and Class RS partnership units | [1] | 7,797,000 | 7,029,000 | 7,770,000 | |||||||||
Effect of Class O units and options to purchase Class A common stock on an "as if" converted basis | [1] | 24,000 | 756,000 | 309,000 | |||||||||
Weighted average shares outstanding-diluted | 36,794,215 | 45,353,170 | 37,133,584 | ||||||||||
Net income per share attributable to common stockholders - basic | $ 0.11 | $ 0.17 | $ 0.13 | $ 0.13 | $ 0.16 | $ 0.11 | $ 0.11 | $ 0.14 | $ 0.11 | $ 0.54 | $ 0.52 | ||
Net income per share attributable to common stockholders - diluted | $ 0.11 | $ 0.17 | $ 0.12 | $ 0.13 | $ 0.16 | $ 0.11 | $ 0.11 | $ 0.14 | $ 0.11 | $ 0.53 | $ 0.51 | ||
Class O Units [Member] | |||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||||
Weighted average shares outstanding-diluted | 1,113,169 | ||||||||||||
[1] | The Class A units, Class RS units and Class O units represent limited partnership interests in the Operating Partnership, and are described in more detail in Note 8. |
Operating Leases, as Lessee (Na
Operating Leases, as Lessee (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Leased Assets [Line Items] | |||
Rent expense under operating leases | $ 14,600 | $ 5,900 | $ 5,800 |
Capitalized rent | $ 0 | $ 0 | $ 0 |
Santa Clara [Member] | |||
Operating Leased Assets [Line Items] | |||
Sublease expiration period | 2052-10 |
Operating Leases, as Lessee (Fu
Operating Leases, as Lessee (Future Non-cancellable Minimum Rental Payments Required Under Operating Leases and/or Licenses) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Leases [Abstract] | |
2,016 | $ 12,211 |
2,017 | 10,570 |
2,018 | 9,886 |
2,019 | 8,327 |
2,020 | 8,062 |
Thereafter | 79,469 |
Total | $ 128,525 |
Customer Leases, as Lessor (Fut
Customer Leases, as Lessor (Future Minimum Lease Payments to be Received Under Non-Cancelable Operating Customer Leases) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Leases [Abstract] | |
2,016 | $ 283,060 |
2,017 | 212,656 |
2,018 | 153,193 |
2,019 | 102,661 |
2,020 | 87,978 |
Thereafter | 217,415 |
Total | $ 1,056,963 |
Fair Value of Financial Instr71
Fair Value of Financial Instruments (Narrative) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Senior Notes [Member] | Fair Value Measurements, Level 2 [Member] | |
Fair Value Of Financial Instruments [Line Items] | |
Fair value of loan based on current market rates | $ 303.9 |
Quarterly Financial Informati72
Quarterly Financial Information (Summary of Selected Quarterly Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Oct. 14, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effect of Fourth Quarter Events [Line Items] | |||||||||||||
Revenues | $ 92,690 | $ 88,890 | $ 68,117 | $ 61,386 | $ 59,563 | $ 57,945 | $ 51,338 | $ 48,943 | $ 40,462 | $ 311,083 | $ 217,789 | ||
Operating income | 7,243 | 11,095 | 7,266 | 10,379 | 11,682 | 9,913 | 6,266 | 7,413 | 6,203 | 35,983 | 35,274 | ||
Net income | 5,334 | 8,238 | 5,520 | 5,037 | 5,848 | 4,006 | 3,921 | 5,328 | 4,002 | $ (152) | 24,129 | 19,103 | |
Net income available to common stockholders - basic | $ 4,603 | $ 7,009 | $ 4,632 | $ 4,082 | $ 4,627 | $ 3,157 | $ 3,090 | $ 4,198 | $ 3,154 | $ 20,326 | $ 15,072 | ||
Net income per share attributable to common shares - basic | $ 0.11 | $ 0.17 | $ 0.13 | $ 0.13 | $ 0.16 | $ 0.11 | $ 0.11 | $ 0.14 | $ 0.11 | $ 0.54 | $ 0.52 | ||
Net income per share attributable to common shares - diluted | $ 0.11 | $ 0.17 | $ 0.12 | $ 0.13 | $ 0.16 | $ 0.11 | $ 0.11 | $ 0.14 | $ 0.11 | $ 0.53 | $ 0.51 | ||
Qualitytech, LP [Member] | |||||||||||||
Effect of Fourth Quarter Events [Line Items] | |||||||||||||
Revenues | $ 92,690 | $ 88,890 | $ 68,117 | $ 61,386 | $ 59,563 | $ 57,945 | $ 51,338 | $ 48,943 | $ 311,083 | $ 217,789 | $ 177,887 | ||
Operating income | 7,243 | 11,095 | 7,266 | 10,379 | 11,682 | 9,913 | 6,266 | 7,413 | 35,983 | 35,274 | 25,986 | ||
Net income | $ 5,334 | $ 8,238 | $ 5,520 | $ 5,037 | $ 5,848 | $ 4,006 | $ 3,921 | $ 5,328 | $ 24,129 | $ 19,103 | $ 3,850 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - $ / shares | Feb. 22, 2016 | Jan. 06, 2016 | Jan. 06, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | |
Subsequent Event [Line Items] | |||||||||||||||
Dividend paid to common stockholders | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.29 | $ 0.29 | $ 0.29 | $ 0.29 | $ 0.24 | [1] | $ 0.29 | $ 1.25 | $ 1.11 | |||
Dividends payable, date of record | Sep. 18, 2015 | Jun. 19, 2015 | Mar. 20, 2015 | Dec. 19, 2014 | Sep. 19, 2014 | Jun. 20, 2014 | Mar. 20, 2014 | Dec. 20, 2013 | |||||||
Dividends payable, date payable | Oct. 6, 2015 | Jul. 8, 2015 | Apr. 7, 2015 | Jan. 7, 2015 | Oct. 7, 2014 | Jul. 8, 2014 | Apr. 8, 2014 | Jan. 7, 2014 | |||||||
Subsequent Event [Member] | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Dividend paid to common stockholders | $ 0.32 | $ 0.32 | |||||||||||||
Cash dividend payable per common share | $ 0.36 | ||||||||||||||
Dividends payable, date declared | Feb. 22, 2016 | ||||||||||||||
Dividends payable, date of record | Mar. 18, 2016 | Dec. 17, 2015 | Dec. 17, 2015 | ||||||||||||
Dividends payable, date payable | Apr. 5, 2016 | Jan. 6, 2016 | Jan. 6, 2016 | ||||||||||||
[1] | The per common share and per unit rate is prorated. It covers the period beginning October 15, 2013 (the closing date of the IPO) through December 31, 2013 and is based on a full quarter distribution of $0.29 per common share and per unit. |
Schedule II - Valuation and Q74
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Doubtful Accounts [Member] | |||
Balance at beginning of period | $ 3,748 | $ 945 | $ 456 |
Charge to expenses | 1,323 | 600 | 545 |
Additions/(deductions) | (8) | 2,203 | (56) |
Balance at end of period | 5,063 | 3,748 | 945 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Balance at beginning of period | $ 3,395 | $ 1,365 | $ 1,871 |
Charge to expenses | |||
Additions/(deductions) | $ (3,395) | $ 2,030 | $ (506) |
Balance at end of period | $ 3,395 | $ 1,365 |
Schedule III - Real Estate In75
Schedule III - Real Estate Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial costs of land | $ 43,429 | |||
Initial costs of buildings and improvements | 275,857 | |||
Initial costs of contruction in progress | 29,891 | |||
Costs capitalized subsequent to acquisition, Land | 13,683 | |||
Costs capitalized subsequent to acquisition, Buildings and improvements | 904,529 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 315,764 | |||
Gross carrying amount, Land | 57,112 | |||
Gross carrying amount, Buildings and improvements | 1,180,386 | |||
Gross carrying amount, Construction in progress | 345,655 | |||
Accumulated depreciation and amortization | (239,936) | $ (180,167) | $ (137,725) | $ (102,900) |
Owned Properties [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial costs of land | 42,299 | |||
Initial costs of buildings and improvements | 194,975 | |||
Initial costs of contruction in progress | 17,764 | |||
Costs capitalized subsequent to acquisition, Land | 13,683 | |||
Costs capitalized subsequent to acquisition, Buildings and improvements | 866,272 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 318,270 | |||
Gross carrying amount, Land | 55,982 | |||
Gross carrying amount, Buildings and improvements | 1,061,247 | |||
Gross carrying amount, Construction in progress | 336,034 | |||
Accumulated depreciation and amortization | (217,253) | |||
Owned Properties [Member] | Suwanee, Georgia [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial costs of land | 1,395 | |||
Initial costs of buildings and improvements | 29,802 | |||
Costs capitalized subsequent to acquisition, Land | 2,126 | |||
Costs capitalized subsequent to acquisition, Buildings and improvements | 120,226 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 15,330 | |||
Gross carrying amount, Land | 3,521 | |||
Gross carrying amount, Buildings and improvements | 150,028 | |||
Gross carrying amount, Construction in progress | 15,330 | |||
Accumulated depreciation and amortization | $ (50,038) | |||
Date of acquisition | Sep. 1, 2005 | |||
Owned Properties [Member] | Atlanta, Georgia (Atlanta-Metro) [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial costs of land | $ 12,647 | |||
Initial costs of buildings and improvements | 35,473 | |||
Costs capitalized subsequent to acquisition, Land | 2,750 | |||
Costs capitalized subsequent to acquisition, Buildings and improvements | 370,717 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 41,835 | |||
Gross carrying amount, Land | 15,397 | |||
Gross carrying amount, Buildings and improvements | 406,190 | |||
Gross carrying amount, Construction in progress | 41,835 | |||
Accumulated depreciation and amortization | $ (95,856) | |||
Date of acquisition | Oct. 3, 2006 | |||
Owned Properties [Member] | Santa Clara, California [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial costs of buildings and improvements | $ 15,838 | |||
Costs capitalized subsequent to acquisition, Buildings and improvements | 78,599 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 1,379 | |||
Gross carrying amount, Buildings and improvements | 94,437 | |||
Gross carrying amount, Construction in progress | 1,379 | |||
Accumulated depreciation and amortization | $ (28,524) | |||
Date of acquisition | Nov. 1, 2007 | |||
Owned Properties [Member] | Richmond, Virginia [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial costs of land | $ 2,000 | |||
Initial costs of buildings and improvements | 11,200 | |||
Costs capitalized subsequent to acquisition, Land | 180 | |||
Costs capitalized subsequent to acquisition, Buildings and improvements | 197,454 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 85,771 | |||
Gross carrying amount, Land | 2,180 | |||
Gross carrying amount, Buildings and improvements | 208,654 | |||
Gross carrying amount, Construction in progress | 85,771 | |||
Accumulated depreciation and amortization | $ (23,918) | |||
Date of acquisition | Mar. 20, 2010 | |||
Owned Properties [Member] | Sacramento, California [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial costs of land | $ 1,481 | |||
Initial costs of buildings and improvements | 52,753 | |||
Costs capitalized subsequent to acquisition, Buildings and improvements | 8,709 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 73 | |||
Gross carrying amount, Land | 1,481 | |||
Gross carrying amount, Buildings and improvements | 61,462 | |||
Gross carrying amount, Construction in progress | 73 | |||
Accumulated depreciation and amortization | $ (4,956) | |||
Date of acquisition | Dec. 21, 2012 | |||
Owned Properties [Member] | Princeton, New Jersey [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial costs of land | $ 20,700 | |||
Initial costs of buildings and improvements | 32,126 | |||
Costs capitalized subsequent to acquisition, Buildings and improvements | 582 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 422 | |||
Gross carrying amount, Land | 20,700 | |||
Gross carrying amount, Buildings and improvements | 32,708 | |||
Gross carrying amount, Construction in progress | 422 | |||
Accumulated depreciation and amortization | $ (1,284) | |||
Date of acquisition | Jun. 30, 2014 | |||
Owned Properties [Member] | Dallas-Fort Worth, Texas [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial costs of buildings and improvements | $ 5,808 | |||
Costs capitalized subsequent to acquisition, Land | 8,590 | |||
Costs capitalized subsequent to acquisition, Buildings and improvements | 65,975 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 120,331 | |||
Gross carrying amount, Land | 8,590 | |||
Gross carrying amount, Buildings and improvements | 71,783 | |||
Gross carrying amount, Construction in progress | 120,331 | |||
Accumulated depreciation and amortization | $ (4,468) | |||
Date of acquisition | Feb. 8, 2013 | |||
Owned Properties [Member] | Chicago, Illinois [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial costs of contruction in progress | $ 17,764 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 52,985 | |||
Gross carrying amount, Construction in progress | $ 70,749 | |||
Date of acquisition | Jul. 8, 2014 | |||
Owned Properties [Member] | Miami, Florida [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial costs of land | $ 1,777 | |||
Initial costs of buildings and improvements | 6,955 | |||
Costs capitalized subsequent to acquisition, Buildings and improvements | 23,599 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 144 | |||
Gross carrying amount, Land | 1,777 | |||
Gross carrying amount, Buildings and improvements | 30,554 | |||
Gross carrying amount, Construction in progress | 144 | |||
Accumulated depreciation and amortization | $ (8,101) | |||
Date of acquisition | Mar. 6, 2008 | |||
Owned Properties [Member] | Lenexa, Kansas [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial costs of land | $ 400 | |||
Initial costs of buildings and improvements | 3,100 | |||
Costs capitalized subsequent to acquisition, Land | 37 | |||
Costs capitalized subsequent to acquisition, Buildings and improvements | 411 | |||
Gross carrying amount, Land | 437 | |||
Gross carrying amount, Buildings and improvements | 3,511 | |||
Accumulated depreciation and amortization | $ (108) | |||
Date of acquisition | Jun. 3, 2011 | |||
Owned Properties [Member] | Duluth Georgia Office Building [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial costs of land | $ 1,899 | |||
Initial costs of buildings and improvements | 1,920 | |||
Gross carrying amount, Land | 1,899 | |||
Gross carrying amount, Buildings and improvements | $ 1,920 | |||
Date of acquisition | Dec. 30, 2015 | |||
Leased Properties [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial costs of land | $ 1,130 | |||
Initial costs of buildings and improvements | 80,882 | |||
Initial costs of contruction in progress | 12,127 | |||
Costs capitalized subsequent to acquisition, Buildings and improvements | 38,257 | |||
Costs capitalized subsequent to acquisition, Construction in progress | (2,506) | |||
Gross carrying amount, Land | 1,130 | |||
Gross carrying amount, Buildings and improvements | 119,139 | |||
Gross carrying amount, Construction in progress | 9,621 | |||
Accumulated depreciation and amortization | (22,683) | |||
Leased Properties [Member] | Carpathia Properties [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial costs of land | 1,130 | |||
Initial costs of buildings and improvements | 78,897 | |||
Initial costs of contruction in progress | 12,127 | |||
Costs capitalized subsequent to acquisition, Buildings and improvements | 11,092 | |||
Costs capitalized subsequent to acquisition, Construction in progress | (4,931) | |||
Gross carrying amount, Land | 1,130 | |||
Gross carrying amount, Buildings and improvements | 89,989 | |||
Gross carrying amount, Construction in progress | 7,196 | |||
Accumulated depreciation and amortization | $ (8,758) | |||
Date of acquisition | Jun. 16, 2015 | |||
Leased Properties [Member] | Jersey City, New Jersey [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial costs of buildings and improvements | $ 1,985 | |||
Costs capitalized subsequent to acquisition, Buildings and improvements | 26,243 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 2,421 | |||
Gross carrying amount, Buildings and improvements | 28,228 | |||
Gross carrying amount, Construction in progress | 2,421 | |||
Accumulated depreciation and amortization | $ (13,273) | |||
Date of acquisition | Nov. 1, 2006 | |||
Leased Properties [Member] | Overland Park, Kansas [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Costs capitalized subsequent to acquisition, Buildings and improvements | $ 922 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 4 | |||
Gross carrying amount, Buildings and improvements | 922 | |||
Gross carrying amount, Construction in progress | 4 | |||
Accumulated depreciation and amortization | $ (652) |
Schedule III - Real Estate In76
Schedule III - Real Estate Investments (Summary of Historical Cost and Accumulated Depreciation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property | |||
Balance, beginning of period | $ 1,177,582 | $ 905,735 | $ 734,828 |
Disposals | (5,617) | (54) | |
Additions (acquisitions and improvements) | 411,188 | 271,901 | 170,907 |
Balance, end of period | 1,583,153 | 1,177,582 | 905,735 |
Accumulated depreciation | |||
Balance, beginning of period | (180,167) | (137,725) | (102,900) |
Disposals | 1,377 | 39 | |
Additions (depreciation and amortization expense) | (61,146) | (42,481) | (34,825) |
Balance, end of period | $ (239,936) | $ (180,167) | $ (137,725) |