Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 23, 2017 | Jun. 30, 2016 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
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 | $ 2.7 | ||
Common Class A [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 47,701,605 | ||
Common Class B [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 133,000 | ||
Qualitytech, LP [Member] | |||
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | QualityTech, LP | ||
Entity Central Index Key | 1,561,164 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED FINANCIA
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Real Estate Assets | ||
Land | $ 74,130 | $ 57,112 |
Buildings and improvements | 1,524,767 | 1,180,386 |
Less: Accumulated depreciation | (317,834) | (239,936) |
Total real estate assets | 1,281,063 | 997,562 |
Construction in progress | 365,960 | 345,655 |
Real Estate Assets, net | 1,647,023 | 1,343,217 |
Cash and cash equivalents | 9,580 | 8,804 |
Rents and other receivables, net | 41,540 | 28,233 |
Acquired intangibles, net | 129,754 | 115,702 |
Deferred costs, net | 38,507 | 30,042 |
Prepaid expenses | 6,918 | 6,502 |
Goodwill | 173,843 | 181,738 |
Other assets, net | 39,305 | 33,101 |
TOTAL ASSETS | 2,086,470 | 1,747,339 |
LIABILITIES | ||
Unsecured credit facility, net | 634,939 | 520,956 |
Senior notes, net of discount and debt issuance costs | 292,179 | 290,852 |
Capital lease and lease financing obligations | 38,708 | 49,761 |
Accounts payable and accrued liabilities | 86,129 | 95,924 |
Dividends and distributions payable | 19,634 | 15,378 |
Advance rents, security deposits and other liabilities | 24,893 | 18,798 |
Deferred income taxes | 15,185 | 18,813 |
Deferred income | 21,993 | 16,991 |
TOTAL LIABILITIES | 1,133,660 | 1,027,473 |
EQUITY | ||
Common stock, $0.01 par value, 450,133,000 shares authorized, 47,831,250 and 41,225,784 shares issued and outstanding as of December 31, 2016 and 2015, respectively | 478 | 412 |
Additional paid-in capital | 931,783 | 670,275 |
Accumulated dividends in excess of earnings | (97,793) | (52,732) |
Total stockholders' equity | 834,468 | 617,955 |
Noncontrolling interests | 118,342 | 101,911 |
TOTAL EQUITY | 952,810 | 719,866 |
TOTAL LIABILITIES AND EQUITY | 2,086,470 | 1,747,339 |
Qualitytech, LP [Member] | ||
Real Estate Assets | ||
Land | 74,130 | 57,112 |
Buildings and improvements | 1,524,767 | 1,180,386 |
Less: Accumulated depreciation | (317,834) | (239,936) |
Total real estate assets | 1,281,063 | 997,562 |
Construction in progress | 365,960 | 345,655 |
Real Estate Assets, net | 1,647,023 | 1,343,217 |
Cash and cash equivalents | 9,580 | 8,804 |
Rents and other receivables, net | 41,540 | 28,233 |
Acquired intangibles, net | 129,754 | 115,702 |
Deferred costs, net | 38,507 | 30,042 |
Prepaid expenses | 6,918 | 6,502 |
Goodwill | 173,843 | 181,738 |
Other assets, net | 39,305 | 33,101 |
TOTAL ASSETS | 2,086,470 | 1,747,339 |
LIABILITIES | ||
Unsecured credit facility, net | 634,939 | 520,956 |
Senior notes, net of discount and debt issuance costs | 292,179 | 290,852 |
Capital lease and lease financing obligations | 38,708 | 49,761 |
Accounts payable and accrued liabilities | 86,129 | 95,924 |
Dividends and distributions payable | 19,634 | 15,378 |
Advance rents, security deposits and other liabilities | 24,893 | 18,798 |
Deferred income taxes | 15,185 | 18,813 |
Deferred income | 21,993 | 16,991 |
TOTAL LIABILITIES | 1,133,660 | 1,027,473 |
EQUITY | ||
Partners' capital | 952,810 | 719,866 |
TOTAL LIABILITIES AND EQUITY | $ 2,086,470 | $ 1,747,339 |
CONDENSED CONSOLIDATED FINANCI3
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
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 | 47,831,250 | 47,831,250 |
Common stock, shares outstanding | 41,225,784 | 41,225,784 |
CONDENSED CONSOLIDATED FINANCI4
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||
Rental | $ 295,723 | $ 230,510 | $ 175,649 |
Recoveries from customers | 29,271 | 22,581 | 19,194 |
Cloud and managed services | 68,488 | 51,994 | 20,231 |
Other | 8,881 | 5,998 | 2,715 |
Total revenues | 402,363 | 311,083 | 217,789 |
Operating Expenses: | |||
Property operating costs | 136,488 | 104,355 | 71,518 |
Real estate taxes and insurance | 8,840 | 5,869 | 5,116 |
Depreciation and amortization | 124,786 | 85,811 | 58,282 |
General and administrative | 83,286 | 67,783 | 45,283 |
Restructuring | 1,298 | ||
Transaction and integration costs | 10,906 | 11,282 | 1,018 |
Total operating expenses | 364,306 | 275,100 | 182,515 |
Operating income | 38,057 | 35,983 | 35,274 |
Other income and expenses: | |||
Interest income | 3 | 2 | 8 |
Interest expense | (23,159) | (21,289) | (15,308) |
Other income/(expense), net | (192) | (468) | (871) |
Income before taxes and loss on sale of real estate | 14,709 | 14,228 | 19,103 |
Tax benefit of taxable REIT subsidiaries | 9,976 | 10,065 | |
Loss on sale of real estate | (164) | ||
Net income | 24,685 | 24,129 | 19,103 |
Net income attributable to noncontrolling interests | (3,160) | (3,803) | (4,031) |
Net income attributable to QTS Realty Trust, Inc. | $ 21,525 | $ 20,326 | $ 15,072 |
Net income per share attributable to common shares: | |||
Basic (in dollars per share) | $ 0.47 | $ 0.54 | $ 0.52 |
Diluted (in dollars per share) | $ 0.46 | $ 0.53 | $ 0.51 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 46,205,937 | 37,568,109 | 29,054,576 |
Diluted (in shares) | 53,962,234 | 45,353,170 | 37,133,584 |
Qualitytech, LP [Member] | |||
Revenues: | |||
Rental | $ 295,723 | $ 230,510 | $ 175,649 |
Recoveries from customers | 29,271 | 22,581 | 19,194 |
Cloud and managed services | 68,488 | 51,994 | 20,231 |
Other | 8,881 | 5,998 | 2,715 |
Total revenues | 402,363 | 311,083 | 217,789 |
Operating Expenses: | |||
Property operating costs | 136,488 | 104,355 | 71,518 |
Real estate taxes and insurance | 8,840 | 5,869 | 5,116 |
Depreciation and amortization | 124,786 | 85,811 | 58,282 |
General and administrative | 83,286 | 67,783 | 45,283 |
Restructuring | 1,298 | ||
Transaction and integration costs | 10,906 | 11,282 | 1,018 |
Total operating expenses | 364,306 | 275,100 | 182,515 |
Operating income | 38,057 | 35,983 | 35,274 |
Other income and expenses: | |||
Interest income | 3 | 2 | 8 |
Interest expense | (23,159) | (21,289) | (15,308) |
Other income/(expense), net | (192) | (468) | (871) |
Income before taxes and loss on sale of real estate | 14,709 | 14,228 | 19,103 |
Tax benefit of taxable REIT subsidiaries | 9,976 | 10,065 | |
Loss on sale of real estate | (164) | ||
Net income | $ 24,685 | $ 24,129 | $ 19,103 |
CONDENSED CONSOLIDATED FINANCI5
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF EQUITY (UNAUDITED) - USD ($) $ in Thousands | Qualitytech, LP [Member]General Partner [Member] | Qualitytech, LP [Member]Limited Partner [Member] | Qualitytech, LP [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, 2013 | $ 289 | $ 318,834 | $ (357) | $ (3,799) | $ 314,967 | $ 84,737 | $ 399,704 | |||
Beginning balance at Dec. 31, 2013 | $ 399,704 | $ 399,704 | ||||||||
Beginning balance, shares at Dec. 31, 2013 | 28,973 | |||||||||
Beginning balance, shares at Dec. 31, 2013 | 1,000 | 36,770,000 | ||||||||
Issuance of shares through equity award plan | $ 5 | (5) | ||||||||
Issuance of shares through equity award plan, shares | 165,000 | 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 | |||||||||
Other comprehensive gain (loss) | $ 453 | 453 | $ 357 | 357 | 96 | 453 | ||||
Net proceeds from IPO | 9,452 | 9,452 | ||||||||
Equity-based compensation expense | 4,153 | 4,153 | 3,277 | 3,277 | 876 | 4,153 | ||||
Dividend to shareholder | (33,776) | (33,776) | (33,776) | (33,776) | (33,776) | |||||
Distributions to noncontrolling interests | (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 | 1,000 | 36,935,000 | ||||||||
Issuance of shares through equity award plan | $ (644) | $ 3 | (3) | (644) | (644) | |||||
Issuance of shares through equity award plan, shares | 338,000 | 338 | ||||||||
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 | |||||||||
Net proceeds from equity offering | $ (368,664) | (368,664) | $ (108) | (330,256) | (330,364) | (38,300) | (368,664) | |||
Net proceeds from equity offering, shares | 10,750,000 | 10,750 | ||||||||
Equity-based compensation expense | $ 6,964 | 6,964 | 5,866 | 5,866 | 1,098 | 6,964 | ||||
Dividend to shareholder | (50,555) | (50,555) | (50,555) | (50,555) | (50,555) | |||||
Distributions to noncontrolling interests | (8,877) | (8,877) | ||||||||
Partnership distributions | (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 | 1,000 | 48,023,000 | ||||||||
Issuance of shares through equity award plan | $ (1,726) | (1,726) | $ 3 | (3) | (1,726) | (1,726) | ||||
Issuance of shares through equity award plan, shares | 280,000 | 280 | ||||||||
Net proceeds from equity offering | $ (275,862) | (275,862) | $ (63) | (252,282) | (252,345) | (23,517) | (275,862) | |||
Net proceeds from equity offering, shares | 6,325,000 | 6,325 | ||||||||
Equity-based compensation expense | $ 10,584 | 10,584 | 9,229 | 9,229 | 1,355 | 10,584 | ||||
Dividend to shareholder | (66,586) | (66,586) | (66,586) | (66,586) | (66,586) | |||||
Distributions to noncontrolling interests | (9,875) | (9,875) | ||||||||
Partnership distributions | (9,875) | (9,875) | ||||||||
Net income | 24,685 | 24,685 | 21,525 | 21,525 | 3,160 | 24,685 | ||||
Ending balance at Dec. 31, 2016 | $ 478 | $ 931,783 | $ (97,793) | $ 834,468 | $ 118,342 | $ 952,810 | ||||
Ending balance at Dec. 31, 2016 | $ 952,810 | $ 952,810 | ||||||||
Ending balance, shares at Dec. 31, 2016 | 47,831 | |||||||||
Ending balance, shares at Dec. 31, 2016 | 1,000 | 54,628,000 |
CONDENSED CONSOLIDATED FINANCI6
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS STATEMENTS OF CASH FLOW (UNAUDITED) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Cash flow from operating activities: | |||
Net income | $ 24,685 | $ 24,129 | $ 19,103 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 121,464 | 83,488 | 55,327 |
Amortization of deferred loan costs | 3,285 | 3,181 | 2,673 |
Amortization of senior notes discount | 261 | 247 | 98 |
Equity-based compensation expense | 10,584 | 6,964 | 4,153 |
Bad debt expense | 1,752 | 1,323 | 600 |
Write off of deferred loan costs | 224 | 468 | 870 |
Deferred tax benefit | (10,171) | (10,065) | |
Loss on sale of property | 164 | ||
Non-cash integration costs | 1,927 | 3,117 | |
Changes in operating assets and liabilities | |||
Rents and other receivables, net | (17,101) | (1,138) | (1,745) |
Prepaid expenses | 158 | (2,182) | (1,266) |
Other assets | (561) | (5,016) | (73) |
Accounts payable and accrued liabilities | 6,290 | 8,938 | (8,663) |
Advance rents, security deposits and other liabilities | 5,959 | (763) | 41 |
Deferred income | 5,038 | (3,597) | 2,639 |
Net cash provided by operating activities | 153,794 | 109,258 | 73,757 |
Cash flow from investing activities: | |||
Proceeds from sale of property | 648 | ||
Acquisitions, net of cash acquired | (173,067) | (292,685) | (91,064) |
Additions to property and equipment | (279,905) | (320,058) | (201,145) |
Net cash used in investing activities | (452,972) | (612,095) | (292,209) |
Cash flow from financing activities: | |||
Credit facility proceeds | 574,000 | 671,162 | 270,500 |
Senior Notes proceeds | 297,633 | ||
Debt repayment | (459,002) | (386,998) | (290,000) |
Payment of deferred financing costs | (4,177) | (3,649) | (9,864) |
Payment of cash dividends | (62,585) | (45,892) | (32,198) |
Distribution to noncontrolling interests | (9,619) | (8,865) | (9,049) |
Payments to net settle equity awards | 1,726 | ||
Principal payments on capital lease obligations | (12,600) | (7,677) | (753) |
Mortgage principal debt repayments | (86,600) | (2,239) | |
Equity proceeds, net of costs | 275,663 | 369,372 | |
Net cash provided by financing activities | 299,954 | 500,853 | 224,030 |
Net (decrease) increase in cash and cash equivalents | 776 | (1,984) | 5,578 |
Cash and cash equivalents, beginning of period | 8,804 | 10,788 | 5,210 |
Cash and cash equivalents, end of period | 9,580 | 8,804 | 10,788 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||
Cash paid for interest (excluding deferred financing costs and amounts capitalized) | 19,897 | 18,027 | 4,950 |
Noncash investing and financing activities: | |||
Accrued capital additions | 40,431 | 52,552 | 39,129 |
Accrued deferred financing costs | 39 | 1 | 2,858 |
Accrued equity issuance costs | 57 | ||
Capital lease and lease financing obligations assumed | 43,832 | ||
Acquisitions, net of cash acquired: | |||
Land | 7,602 | 3,030 | 17,976 |
Buildings, improvements and equipment | 80,975 | 80,818 | 35,865 |
Construction in process | 62,884 | 12,127 | 17,764 |
Rents and other receivables, net | (2,042) | 13,704 | |
Acquired intangibles | 34,521 | 93,400 | 16,114 |
Deferred costs | 4,414 | 3,345 | |
Prepaid expenses | 574 | 1,653 | |
Goodwill | (7,895) | 174,697 | |
Other assets | 309 | 633 | |
Capital lease and lease financing obligations | (43,832) | ||
Accounts payable and accrued liabilities | (922) | (8,586) | |
Advance rents, security deposits and other liabilities | (1,343) | (2,468) | |
Deferred income | 35 | (10,818) | |
Deferred income taxes | (6,045) | (21,673) | |
Total acquisitions, net of cash acquired | 173,067 | 292,685 | 91,064 |
Qualitytech, LP [Member] | |||
Cash flow from operating activities: | |||
Net income | 24,685 | 24,129 | 19,103 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 121,464 | 83,488 | 55,327 |
Amortization of deferred loan costs | 3,285 | 3,181 | 2,673 |
Amortization of senior notes discount | 261 | 247 | 98 |
Equity-based compensation expense | 10,584 | 6,964 | 4,153 |
Bad debt expense | 1,752 | 1,323 | 600 |
Write off of deferred loan costs | 224 | 468 | 870 |
Deferred tax benefit | (10,171) | (10,065) | |
Loss on sale of property | 164 | ||
Non-cash integration costs | 1,927 | 3,117 | |
Changes in operating assets and liabilities | |||
Rents and other receivables, net | (17,101) | (1,138) | (1,745) |
Prepaid expenses | 158 | (2,182) | (1,266) |
Other assets | (561) | (5,016) | (73) |
Accounts payable and accrued liabilities | 6,290 | 8,938 | (8,663) |
Advance rents, security deposits and other liabilities | 5,959 | (763) | 41 |
Deferred income | 5,038 | (3,597) | 2,639 |
Net cash provided by operating activities | 153,794 | 109,258 | 73,757 |
Cash flow from investing activities: | |||
Proceeds from sale of property | 648 | ||
Acquisitions, net of cash acquired | (173,067) | (292,685) | (91,064) |
Additions to property and equipment | (279,905) | (320,058) | (201,145) |
Net cash used in investing activities | (452,972) | (612,095) | (292,209) |
Cash flow from financing activities: | |||
Credit facility proceeds | 574,000 | 671,162 | 270,500 |
Senior Notes proceeds | 297,633 | ||
Debt repayment | (459,002) | (386,998) | (290,000) |
Payment of deferred financing costs | (4,177) | (3,649) | (9,864) |
Payment of cash dividends | (62,585) | (45,892) | (32,198) |
Partnership distributions | (9,619) | (8,865) | (9,049) |
Payments to net settle equity awards | 1,726 | ||
Principal payments on capital lease obligations | (12,600) | (7,677) | (753) |
Mortgage principal debt repayments | (86,600) | (2,239) | |
Equity proceeds, net of costs | 275,663 | 369,372 | |
Net cash provided by financing activities | 299,954 | 500,853 | 224,030 |
Net (decrease) increase in cash and cash equivalents | 776 | (1,984) | 5,578 |
Cash and cash equivalents, beginning of period | 8,804 | 10,788 | 5,210 |
Cash and cash equivalents, end of period | 9,580 | 8,804 | 10,788 |
Acquisitions, net of cash acquired: | |||
Total acquisitions, net of cash acquired | $ 173,067 | $ 292,685 | $ 91,064 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2016 | |
Description of Business [Abstract] | |
Description of Business | QTS REALTY TRUST, INC. QUALITYTECH, LP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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 25 wholly-owned and leased properties with data centers located throughout the United States, Canada, Europe and Asia. QTS was formed as a Maryland corporation on May 17, 2013 and completed its initial public offering of 14,087,500 shares of Class A common stock, $0.01 par value per share (the “IPO”), on October 15, 2013. 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. 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, 2016, QTS owned approximately 87.6% 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, 2016 | |
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. In 2016, the Company adopted ASU 2015-02, Amendments to the Consolidation Analysis. This standard amends certain guidance applicable to the consolidation of various legal entities, including variable interest entities (“VIE”). The Company evaluated the application of the ASU and concluded that no change was required to its accounting for its interest in the Operating Partnership. However, under the new guidance, the Operating Partnership now meets the definition and criteria of a VIE and the Company is the primary beneficiary of the VIE. As discussed below, the Company’s only material asset is its ownership interest in the Operating Partnership, and consequently, all of its assets and liabilities represent those assets and liabilities of the Operating Partnership. The Company’s debt is an obligation of the Operating Partnership where the creditors may have recourse, under certain circumstances, against the credit of the Company. 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 subsidiary formed 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. However, 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 “Code”). The consolidated financial statements of QTS Realty Trust, Inc. 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. Reclassifications – The consolidated balance sheet at December 31, 2015 reflects a reclassification of $3.1 million from Deferred Costs, net to Unsecured Credit Facility, net, and $7.1 million from Deferred Costs, net to Senior Notes, net of discount and debt issuance costs as required by the Company’s adoption of ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” 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, 2016, depreciation expense related to real estate assets and non-real estate assets was $77.5 million and $13.1 million, respectively, for a total of $90.6 million. 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. 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 $11.0 million, $10.8 million and $10.6 million for the years ended December 31, 2016, 2015 and 2014 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 $11.4 million, $9.8 million and $6.5 million for the years ended December 31, 2016, 2015 and 2014, respectively. Acquisitions – 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, construction in progress, 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. The total carrying amount of acquired in-place leases was $32.1 million and $16.9 million and accumulated amortization related to acquired in-place leases was $7.2 million and $2.5 million for the years ended December 31, 2016 and 2015, respectively. 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 $4.7 million, $1.7 million and $2.2 million for the years ended December 31, 2016, 2015 and 2014, respectively. This amortization expense is accounted for as real estate amortization expense. The total carrying amount of customer relationships was $95.7 million and $86.1 million and accumulated amortization related to customer relationships was $12.4 million and $7.7 million for the years ended December 31, 2016 and 2015, 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 $10.1 million, $5.0 million and $1.3 million for the years ended December 31, 2016, 2015 and 2014, respectively. This amortization expense is accounted for as real estate amortization expense. The current period amortization includes a $1.0 million adjustment related to an increase in the purchase price allocation of the acquired customer relationship intangible recorded in the three months ended March 31, 2016, of which $0.7 million related to prior reporting periods. See Note 3 for further detail. 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 $3.2 million and $1.7 million for the years ended December 31, 2016 and 2015, respectively. Trade name amortization expense was $1.0 million and $0.6 million for the years ended December 31, 2016 and 2015, respectively. Above or below market leases are amortized as a reduction to or increase in rental revenue as well as a reduction to rent expense over the remaining lease terms. Amortization of above or below market leases recorded as net offsets to rental revenue totaled $0.9 million for the year ended December 31, 2016, with no such costs incurred for the year ended December 31, 2015. Amortization of above or below market leases recorded as offsets to rent expense totaled $0.2 million and $0.1 million for the years ended December 31, 2016 and 2015, respectively. There was no amortization related to platform, trade name, and above or below market lease intangibles for the year ended December 31, 2014. 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. Net amortization expense related to identifiable intangible assets, including both amortization expense as well as offsets or increases to rental revenue and rent expense, is expected to be approximately $19.0 million, $15.0 million, $12.2 million, $11.8 million and $10.0 million for the years ended December 31, 2017 through December 31, 2021, respectively. See Note 3 for discussion of the final purchase accounting allocation for the acquisition of Carpathia Hosting, Inc. (“Carpathia”) on June 16, 2015, the preliminary purchase price allocation for the Piscataway, New Jersey facility (the “Piscataway facility”) that the Company acquired on June 6, 2016, as well as the preliminary purchase price allocation for the Fort Worth, Texas facility (the “Fort Worth facility”) that the Company acquired on December 16, 2016. 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. During 2016, the Company elected to write off approximately $1.9 million related to certain software to utilize different solutions, of which approximately $1.0 million related to software for its federal cloud product as well as $0.9 million related to an identify governance access management software. No impairment losses were recorded for the years ended December 31, 2016, 2015 and 2014. The fair value of goodwill is the consideration transferred which is not allocable to identifiable intangible and tangible assets. Goodwill is subject to an annual assessment for impairment. As a result of the Carpathia acquisition, the Company recognized approximately $173.8 million in goodwill. In connection with the goodwill impairment evaluation that the Company performed on October 1, 2016, 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. As discussed above in Reclassifications , the Company adopted ASU 2015-03 during the year ended December 31, 2016. Pursuant to this updated guidance, debt issuance costs related to revolving debt arrangements are permitted to be deferred and presented as assets on the balance sheet; however, all other debt issuance costs must be recorded as a direct offset to the associated liability. As such, deferred financing costs on the Company’s consolidated balance sheets represent costs incurred in connection with obtaining only revolving debt arrangements. These costs are amortized over the term of the loan and are included in interest expense. Amortization of debt issuance costs, including those costs presented as offsets to the associated liability in the consolidated balance sheet, was $3.3 million, $3.2 million and $2.7 million for the years ended December 31, 2016, 2015 and 2014, respectively. During the year ended December 31, 2016, the Company wrote off unamortized financing costs of $0.2 million to the income statement in connection with the modification of its unsecured credit facility in December 2016 whereby the company increased the total capacity and extended the term for an additional year. 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 as well as the amendment of its unsecured credit facility in October 2015 whereby the Company increased the unsecured credit facility capacity, and, at the same time, terminated its Richmond credit facility. Deferred financing costs related to revolving debt arrangements, net of accumulated amortization are as follows: December 31, December 31, (dollars in thousands) 2016 2015 Deferred financing costs $ $ Accumulated amortization Deferred financing costs, net $ $ 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 $15.2 million, $11.8 million and $9.4 million for the years ended December 31, 2016, 2015 and 2014, respectively. Deferred leasing costs, net of accumulated amortization are as follows: December 31, December 31, (dollars in thousands) 2016 2015 Deferred leasing costs $ $ Accumulated amortization Deferred leasing costs, net $ $ 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 $22.0 million, $17.0 million and $10.5 million as of December 31, 2016, 2015 and 2014, respectively. Additionally, $9.4 million, $6.0 million and $4.7 million of deferred income was amortized into revenue for the years ended December 31, 2016, 2015 and 2014, respectively. 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 $10.6 million, $7.0 million and $4.2 million for the years ended December 31, 2016, 2015 and 2014, 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 $17.3 million and $9.1 million as of December 31, 2016 and December 31, 2015, 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 $4.2 million and $5.1 million as of December 31, 2016 and December 31, 2015, 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 $18.1 million and $26.9 million as of December 31, 2016 and 2015, respectively. The outstanding liabilities for the lease financing obligations were $20.6 million and $22.8 million as of December 31, 2016 and 2015, respectively. The net book value of the assets associated with these leases was approximately $41.5 million and $51.0 million as of December 31, 2016 and 2015, 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 Asia. Customer Concentrations – As of December 31, 2016, one of the Company’s customers represented 13.0% of its total monthly rental revenue. No other customers exceeded 4% of total monthly rental revenue. As of December 31, 2016, nine of the Company’s customers exceeded 5% of total accounts receivable. In aggregate, these nine customers accounted for 73% of total accounts receivable. Two of these nine customers individually exceeded 10% of total accounts receivable. Income Taxes – The Company has elected for two of its existing subsidiaries to be taxed as taxable REIT subsidiaries 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 Company’s 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 would be realized by the Company, and the valuation allowance was eliminated. The change in the valuation allowance resulting from the change in circumstances was included in income, and recognized as a deferred income tax benefit in the year ended December 31, 2015. In addition to the deferred income tax benefit recognized in the year ended December 31, 2015 in connection with the elimination of the valuation allowance, a deferred tax benefit was recognized in the year ended December 31, 2016 in connection with recorded operating losses. As of December 31, 2016, this taxable REIT subsidiary has a net deferred tax liability position primarily due to 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, 2016 2015 2014 Deferred tax liabilities Property and equipment $ $ $ Goodwill — Intangibles — Other Gross deferred tax liabilities Deferred tax assets Net operating loss carryforwards Deferred revenue and setup charges Leases — Credits — Other Gross deferred tax assets Net deferred tax assets Valuation allowance — — Net deferred $ $ $ — The taxable REIT subsidiaries currently have $45.5 million of net operating loss carryforwards related to federal income taxes that expire in 13-20 years. The taxable REIT subsidiaries also have $50.3 million of net operating loss carryforwards relating to state income taxes that expire in 3-20 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 46.5%, 34.8% and 0% for the years ended December 31, 2016, 2015 and 2014, respectively. The increase in the effective tax rate in 2016 is primarily due to state tax rate changes and return-to-provision adjustments. 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, 2016 2015 2014 TRS Statutory rate of 34% applied to pre-tax income (loss) $ $ $ Permanent differences, net State income tax, net of federal benefit Foreign income tax — — Valuation allowance (decrease) increase — Total tax expense (benefit) $ $ $ — Effective tax rate As of December 31, 2016, 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, 2016, 2015 and 2014, 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 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Acquisitions [Abstract] | |
Acquisitions | 3. Acquisitions (All references to square footage, acres and megawatts are unaudited) Fort Worth Acquisition On December 16, 2016, the Company completed the acquisition of the Fort Worth facility for approximately $50.1 million (based on the preliminary assessment of the fair value of assets acquired and liabilities assumed). This facility is located in Fort Worth, Texas, and consists of 53 acres and approximately 262,000 gross square feet. This facility has a basis of design of 80,000 square feet, 8 gross MW of current available power with an additional 8 gross MW available for further expansion. This acquisition was funded with a draw on the unsecured revolving credit facility. The Company accounted for this acquisition in accordance with ASC 805, Business Combinations, as a business combination. The Company is generally valuing the assets acquired and liabilities assumed using Level 3 inputs. The following table summarizes the consideration for the Fort Worth facility 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: Fort Worth Allocation as of Land $ Buildings and improvements Construction in progress Acquired intangibles Deferred costs Other assets Net Working Capital Total identifiable assets acquired $ Acquired intangibles are amortized as both amortization expense as well as offsets to rental revenue. Piscataway Acquisition On June 6, 2016, the Company completed the acquisition of the Piscataway facility for approximately $125.8 million (based on the preliminary assessment of the fair value of assets acquired and liabilities assumed). This facility is located in the New York metro area on 38 acres and consists of 360,000 gross square feet, including approximately 89,000 square feet of raised floor, and approximately 18 MW of critical power. The Piscataway facility supports future growth with space for an additional approximately 87,000 square feet of raised floor in the existing structure, as well as capacity for over 8 MW of additional critical power. This acquisition was funded with a draw on the unsecured revolving credit facility. The Company accounted for this acquisition in accordance with ASC 805, Business Combinations, as a business combination. The Company is generally valuing the assets acquired and liabilities assumed using Level 3 inputs. The following table summarizes the consideration for the Piscataway facility 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: Piscataway Allocation as of Original Allocation Reported as of June 30, 2016 Adjusted Fair Value Land $ $ $ Buildings and improvements Construction in progress — Acquired intangibles Deferred costs Other assets — Total identifiable assets acquired Acquired below market lease Net working capital — Total liabilities assumed Net identifiable assets acquired $ $ $ — Acquired intangibles are amortized as both amortization expense as well as offsets to rental revenue. Based on the preliminary purchase price allocation, amortization expenses relative to acquired in place leases are expected to be approximately $4.0 million, $2.9 million, $2.3 million, $1.7 million and $0.5 million for the years ended December 31, 2017 through December 31, 2021, respectively. Additionally, based on the preliminary purchase price allocation, amortization expenses relative to acquired above and below market leases recorded as net offsets to rental revenue are expected to be approximately $1.1 million, $0.7 million, $0.5 million, $0.6 million and $0.0 million for the years ended December 31, 2017 through December 31, 2021, respectively. Carpathia Acquisition On June 16, 2015, the Company completed the acquisition of 100% of the outstanding stock of Carpathia Hosting, Inc., a Virginia-based colocation, cloud and managed services provider for approximately $373.6 million (based on the final 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 was 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 utilized 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; Hong Kong; London, United Kingdom; and Sydney, Australia. The Company no longer leases the Sydney, Australia data center. The Company accounted for this acquisition in accordance with ASC 805, Business Combinations, as a business combination. The Company generally valued the assets acquired and liabilities assumed using Level 3 inputs. In June 2016, the Company finalized the Carpathia purchase price allocation. The following table summarizes the consideration for the Carpathia acquisition and the final allocation of the fair value of assets acquired and liabilities assumed at the acquisition date (unaudited and in thousands): Final Carpathia Land $ Buildings and improvements Construction in progress Acquired intangibles Net working capital Total identifiable assets acquired Capital lease and lease financing obligations Deferred income taxes Acquired above market lease Total liabilities assumed Net identifiable assets acquired Goodwill Net assets acquired $ 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 is deductible in subsequent periods. Based on the final purchase price allocation, amortization expenses relative to the intangible assets acquired are expected to be approximately $12.2 million, $9.9 million, $8.0 million, $8.0 million and $8.0 million for the years ended December 31, 2017 through December 31, 2021, respectively. Additionally, based on the final purchase price allocation, amortization expenses relative to acquired above market leases recorded as offsets to rent expense are expected to be approximately $0.2 million for each of the years ended December 31, 2017 through December 31, 2021, respectively. The following table represents the pro forma condensed consolidated statements of operations of the combined entities for the years ended December 31, 2015 and 2014 (in thousands): (Unaudited) Pro Forma Condensed Consolidated Statements of Operations Year Ended December 31, 2015 2014 Revenue $ $ Net income $ $ These amounts have been calculated after applying the Company’s accounting policies, and give effect to the Carpathia acquisition. 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, 2014, nor does it purport to represent the results of operations for future periods. |
Real Estate Assets and Construc
Real Estate Assets and Construction in Progress | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 (in thousands): As of December 31, 2016: Property Location Land Buildings and Improvements Construction Total Cost Owned Properties Suwanee, Georgia (Atlanta-Suwanee) $ $ $ $ Atlanta, Georgia (Atlanta-Metro) Santa Clara, California* — Richmond, Virginia Sacramento, California Princeton, New Jersey Irving, Texas Chicago, Illinois Piscataway, New Jersey Fort Worth, Texas Miami, Florida Lenexa, Kansas — Duluth, Georgia Office Building Leased Properties Leased facilities acquired in 2015 *** Jersey City, New Jersey — Overland Park, Kansas — ** $ $ $ $ * 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 12 facilities. All facilities are leased, including those subject to capital leases. As of December 31, 2015: Property Location Land Buildings and Construction Total Cost Owned Properties Suwanee, Georgia (Atlanta-Suwanee) $ $ $ $ Atlanta, Georgia (Atlanta-Metro) Santa Clara, California* — Richmond, Virginia Sacramento, California Princeton, New Jersey Irving, Texas Chicago, Illinois — — Miami, Florida Lenexa, Kansas — Duluth, Georgia Office Building — Leased Properties Leased facilities acquired in 2015 *** Jersey City, New Jersey — Overland Park, Kansas — ** $ $ $ $ * 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. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 (in thousands): Weighted Average Coupon Interest Rate at December 31, December 31, December 31, 2016 Maturities 2016 2015 Unsecured Credit Facility Revolving Credit Facility December 17, 2020 $ $ Term Loan I December 17, 2021 Term Loan II April 27, 2022 Senior Notes August 1, 2022 Capital Lease and Lease Financing Obligations 2017 - 2025 Less discount and net debt issuance costs Total outstanding debt, net $ $ Credit Facilities, Senior Notes and Mortgage Notes Payable (a) Unsecured Credit Facility – In October 2015, the Company amended and restated 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 had a total capacity of $900 million and included a $150 million term loan which was expected to mature on December 17, 2020, another $150 million term loan which was expected to mature on April 27, 2021, and a $600 million revolving credit facility which was expected to mature on December 17, 2019, with a one year extension option. The amended unsecured credit facility also included a $200 million accordion feature. Under the amended unsecured credit facility, the capacity could be increased from $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. In December 2016, the Company further amended and restated its unsecured credit facility, increasing the total capacity by $300 million and extending the term. The amended unsecured credit facility has a total capacity of $1.2 billion and includes a $300 million term loan which matures on December 17, 2021, another $200 million term loan which matures on April 27, 2022, and a $700 million revolving credit facility which matures on December 17, 2020, with a one year extension option. Amounts outstanding under the amended unsecured credit facility bear interest at a variable rate equal to, at the Company’s election, LIBOR or a base rate, plus a spread that will vary depending upon the Company’s 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 $300 million accordion feature. Under the amended unsecured credit facility, the capacity may be increased from the current capacity of $1.2 billion to $1.5 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, 2016, the weighted average interest rate for amounts outstanding under the unsecured credit facility was 2.22%. 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, it 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 Operating Partnership's and its subsidiaries' consolidated total unsecured debt plus any capitalized lease obligations with respect to the unencumbered asset pool properties may not exceed 60% of the unencumbered asset pool value (or 65% of the unencumbered asset pool value for up to two consecutive fiscal quarters immediately following a material acquisition for which the Operating Partnership has provided written notice to the Agent; provided the two fiscal quarter period includes the quarter in which the material acquisition was consummated); (ii) the unencumbered asset pool debt yield cannot be less than 14% (or 12.5% for the two consecutive fiscal quarters immediately following a material acquisition for which the Operating Partnership has provided written notice to the Agent; provided the two fiscal quarter period includes the quarter in which the material acquisition was consummated); (iii) QTS must maintain 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 1.70 to 1.00; (iv) QTS must maintain a maximum debt to gross asset value (as defined in the amended and restated agreement) ratio of 60% (or 65% for the two consecutive fiscal quarters immediately following a material acquisition for which the Operating Partnership has provided written notice to the Agent; provided the two fiscal quarter period includes the quarter in which the material acquisition was consummated); (v) QTS must maintain tangible net worth (as defined in the amended and restated agreement) cannot be less than the sum of $1,179,931,500 plus 75% of the net proceeds from any future equity offerings; and (vi) a maximum distribution payout ratio of the greater of (i) 95% of the Company’s Funds from Operations (as defined in the amended and restated agreement) and (ii) the amount required for the Company to qualify as a REIT under the Code. The availability under the revolving credit facility is the lesser of (i) $700 million, (ii) 60% of the unencumbered asset pool capitalized value (or 65% of the unencumbered asset pool capitalized value for the two consecutive fiscal quarters immediately following a material acquisition for which the Operating Partnership has provided written notice to the Agent; provided the two fiscal quarter period includes the quarter in which the material acquisition was consummated) and (iii) the amount resulting in an unencumbered asset pool debt yield of 14% (or 12.5% for the two consecutive fiscal quarters immediately following a material acquisition for which the Operating Partnership has provided written notice to the Agent; provided the two fiscal quarter period includes the quarter in which the material acquisition was consummated). In the case of clauses (ii) and (iii) of the preceding sentence, the amount available under the revolving credit facility is adjusted to take into account any other unsecured debt and certain capitalized leases. A material acquisition is an acquisition of properties or assets with a gross purchase price equal to or in excess of 15% of the Operating Partnership's gross asset value (as defined in the amended and restated agreement) as of the end of the most recently ended quarter for which financial statements are publicly available. The availability of funds under the unsecured credit facility depends on compliance with certain covenants. As of December 31, 2016, the Company had outstanding $639.0 million of indebtedness under the amended unsecured credit facility, consisting of $139.0 million of outstanding borrowings under the unsecured revolving credit facility and $500.0 million outstanding under the term loans, exclusive of net debt issuance costs of $4.1 million. In connection with the unsecured credit facility, as of December 31, 2016, the Company had an additional $1.5 million letter of credit outstanding. In addition, the Company entered into two additional letters of credit in June 2016 related to the Chicago facility and Piscataway facility in the amounts of $0.5 million and $0.1 million, respectively. (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. As of December 31, 2016, the discount recorded on the Senior Notes was $1.8 million and the outstanding net debt issuance costs associated with the Senior Notes were $6.1 million. 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, receivables entities and 2470 Satellite Boulevard, LLC, which is a Delaware limited liability company formed in December 2015 that acquired an office building in Duluth, Georgia and has de minimis operations) and future subsidiaries that guarantee any indebtedness of QTS Realty Trust, Inc., the Issuers or any other subsidiary guarantor. QTS Realty Trust, Inc. does not 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. The annual remaining principal payment requirements as of December 31, 2016 per the contractual maturities and excluding extension options, capital leases and lease financing obligations, are as follows (in thousands): 2017 $ — 2018 — 2019 — 2020 2021 Thereafter Total $ As of December 31, 2016, 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 $18.1 million as of December 31, 2016, of which $11.2 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 $20.6 million at December 31, 2016, of which $19.0 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 $17.5 million at December 31, 2016. 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 $1.5 million at December 31, 2016, 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 $1.6 million as of December 31, 2016. 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, 2016, on the capital leases and lease financing obligations above (in thousands): 2017 $ 2018 2019 2020 2021 Thereafter Total $ |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 6. 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, 2016 | |
Partners' Capital, Equity and Incentive Compensation Plans [Abstract] | |
Partners' Capital, Equity and Incentive Compensation Plans | 7. 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, 2016, the Operating Partnership had two classes of limited partnership units outstanding: Class A units of limited partnership interest (“Class A units”) and Class O LTIP units of limited partnership units (“Class O units”). The Operating Partnership previously had outstanding Class RS LTIP units of limited partnership interest (“Class RS units”) which have all been converted to Class A units during the year ended December 31, 2016. The Class A units are now redeemable at any time for cash or shares of Class A common stock of QTS. The Company may in its sole discretion elect to assume and satisfy the redemption amount with cash or its shares. Class 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. 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. 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 May 2015, the total number of shares available for issuance under the 2013 Equity Incentive Plan was increased 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, 2016, 2015 and 2014: 2010 Equity Incentive Plan 2013 Equity Incentive Plan Weighted Weighted Weighted Weighted Weighted average Weighted average average Number of average Average fair Number of Grant date average fair Restricted Grant date Class O units exercise price value Class RS units value Options exercise price value Stock value Outstanding at January 1, 2014 $ $ $ $ $ $ Granted — — — — — Exercised/Vested (1) — — Released from restriction (2) — — — — — — — — Cancelled/Expired (3) — — Outstanding at December 31, 2014 $ $ $ $ $ $ Granted — — — — — Exercised/Vested (1) — — Released from restriction (2) — — — — — — — — Cancelled/Expired (3) — — Outstanding at December 31, 2015 $ $ $ $ $ $ Granted — — — — — Exercised/Vested (1) — — Released from restriction (2) — — — — — — — — Cancelled/Expired (3) — — — — — Outstanding at December 31, 2016 $ $ — $ — $ $ $ (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. This also represents Class O units which were converted to Class A units and Options to purchase Class A common stock which were exercised for their respective columns. (2) This represents Class RS units that upon vesting have converted to Operating Partnership units. (3) Includes 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, 2016, 2015 and 2014 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. 2016 2015 2014 Fair value of restricted stock granted $45.78-$56.28 $35.81-$37.69 $25.51-$35.51 Fair value of options granted $9.57-$9.97 $8.00-$8.77 $4.94-$5.98 Expected term (years) 5.5-5.9 5.5-6.1 5.5-6.1 Expected volatility 30.7%-31.3% Expected dividend yield 3.40%-3.57% 4.02%-4.55% Expected risk-free interest rates 1.42%-1.48% 1.67%-1.94% 1.7%-1.9% The following tables summarize information about awards outstanding as of December 31, 2016. Operating Partnership Awards Outstanding Weighted average Awards remaining Exercise prices outstanding vesting period (years) Class O Units $ 20.00-25.00 — Total Operating Partnership awards outstanding QTS Realty Trust, Inc. Awards Outstanding Weighted average Awards remaining Exercise prices outstanding vesting period (years) Restricted stock $ — 1.6 Options to purchase Class A common stock $ 21.00-45.78 0.9 Total QTS Realty Trust, Inc. awards outstanding 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, 2016 there were 0.1 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, 2016, there were no Class RS units outstanding. As of December 31, 2016 the Company had $16.2 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, 2016 was $66.9 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, 2016 and 2015: Year Ended December 31, 2016 Aggregate Per Common Share and Dividend/Distribution Record Date Payment Date Per Unit Rate Amount (in millions) September 20, 2016 October 5, 2016 $ $ June 17, 2016 July 6, 2016 March 18, 2016 April 5, 2016 December 17, 2015 January 6, 2016 $ $ Year Ended December 31, 2015 Aggregate Per Common Share and Dividend/Distribution Record Date Payment Date Per Unit Rate Amount (in millions) September 18, 2015 October 6, 2015 $ $ June 19, 2015 July 8, 2015 March 20, 2015 April 7, 2015 December 19, 2014 January 7, 2015 $ $ Additionally, on January 5, 2017, the Company paid its regular quarterly cash dividend of $0.36 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 16, 2016. Equity Issuances In March 2016, QTS filed an automatic shelf registration statement on Form S-3 with the SEC. Effective upon filing, the shelf provides for the potential sale of an unspecified amount of QTS’ Class A common stock, preferred stock, depositary shares representing preferred stock, warrants and rights to purchase QTS common stock or any combination thereof, subject to the ability of QTS to effect offerings on satisfactory terms based on prevailing conditions. Pursuant to this shelf registration, on April 1, 2016, the Company issued 6,325,000 shares of QTS’ Class A common stock at a price of $45.50 per share in an underwritten public offering, including the exercise in full of the underwriters’ option to purchase an additional 825,000 shares. The Company used substantially all of the net proceeds of approximately $276 million to repay amounts outstanding under its unsecured revolving credit facility. 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 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 of directors or by a committee of one or more persons appointed by the board of directors. 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, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 8. 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, 2016, 2015 and 2014 are outlined below (in thousands): December 31, (dollars in thousands) 2016 2015 2014 Tax, utility, insurance and other reimbursement $ $ $ Rent expense Capital assets acquired Total $ $ $ |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2016 | |
Employee Benefit Plan [Abstract] | |
Employee Benefit Plan | 9. Employee Benefit Plan The Company sponsors a defined contribution 401(k) retirement plan covering all eligible employees. Qualified employees may elect to contribute to the 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. Starting on January 1, 2016, the Company revised its contribution structure, and during 2016 was matching 100% of the first 1% of contributions and 50% of the next 5% of contributions made by employees. The Company contributed $2.5 million, $1.3 million and $0.6 million to the 401(k) Plan for the years ended December 31, 2016, 2015 and 2014, respectively. |
Noncontrolling Interest
Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2016 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | 10. 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, Class A common stock of the Company on a one-for-one basis. During the year ended December 31, 2016, approximately 120,000 Class A units were redeemed for the Company’s Class A common stock. As a result of these redemptions of Class A units into common stock and the issuance of additional common stock, the noncontrolling ownership interest of QualityTech, LP was 12.4% at December 31, 2016 compared to 14.2% at December 31, 2015. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings per Share [Abstract] | |
Earnings per Share | 11. Earnings per share of QTS Realty Trust, Inc. Basic income per share is calculated by dividing the net income attributable to common shares by the weighted average number of common shares outstanding during the period. Diluted income per share adjusts basic income 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 December 31, 2016 2015 2014 Numerator: Net income available to common stockholders - basic $ $ $ Effect of net income attributable to noncontrolling interests Net income available to common stockholders - diluted $ $ $ Denominator: Weighted average shares outstanding - basic Effect of Class A and Class RS partnership units * Effect of Class O units and options to purchase Class A common stock on an "as if" converted basis * Weighted average shares outstanding - diluted Net income per share attributable to common stockholders - basic $ $ $ Net income per share attributable to common stockholders - diluted $ $ $ * 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 7 No securities were antidilutive for the years ended December 31, 2016, 2015 and 2014, 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, 2016 | |
Leases [Abstract] | |
Operating Leases, as Lessee | 12. 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 $20.1 million, $14.6 million and $5.9 million for the years ended December 31, 2016, 2015 and 2014, 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 $0.1 million of capitalized rent for the year ended December 31, 2016. The Company recorded no capitalized rent for the years ended December 31, 2015 and 2014. The future non-cancellable minimum rental payments required under operating leases and/or licenses at December 31, 2016 are as follows (in thousands): Year Ending December 31, 2017 $ 2018 2019 2020 2021 Thereafter Total $ |
Customer Leases, as Lessor
Customer Leases, as Lessor | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Customer Leases, as Lessor | 13. Customer Leases, as Lessor Future minimum lease payments to be received under non-cancelable operating customer leases (inclusive of payments for contracts which have not yet commenced and exclusive of recoveries of operating costs from customers) are as follows for the years ending December 31 (in thousands): 2017 $ 2018 2019 2020 2021 Thereafter Total $ |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 14. 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 facility and Senior Notes: 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, 2016, the fair value of the Senior Notes was approximately $304.9 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, 2016 | |
Quarterly Financial Information [Abstract] | |
Quarterly Financial Information | 15. Quarterly Financial Information (unaudited) The tables below reflect the selected quarterly information for the years ended December 31, 2016 and 2015 for QTS (in thousands except share data): + Three Months Ended December 31, September 30, June 30, March 31, 2016 Revenues $ $ $ $ Operating income Net income Net income attributable to common shares Net income per share attributable to common shares - basic Net income per share attributable to common shares - diluted 2015 Revenues $ $ $ $ Operating income Net income Net income attributable to common shares Net income per share attributable to common shares - basic Net income per share attributable to common shares - diluted The table below reflects the selected quarterly information for the years ended December 31, 2016 and 2015 for the Operating Partnership (in thousands): Three Months Ended December 31, September 30, June 30, March 31, 2016 Revenues $ $ $ $ Operating income Net income 2015 Revenues $ $ $ $ Operating income Net income |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events On January 5, 2017, the Company paid its regular quarterly cash dividend of $0.36 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 16, 2016. On February 17, 2017, the Company announced that its board of directors authorized payment of a regular quarterly cash dividend of $0.39 per common share and per unit in the Operating Partnership, payable on April 5, 2017, to stockholders and unit holders of record as of the close of business on March 16, 2017. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Schedule II - Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | QTS REALTY TRUST, INC. QUALITYTECH, LP CONSOLIDATED FINANCIAL STATEMENTS SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS December 31, 2016 Balance at Balance at Year Ended December 31, beginning of Charge to Additions/ end of (dollars in thousands) period expenses (Deductions) period Allowance for doubtful accounts 2016 $ $ $ $ 2015 2014 Valuation allowance for deferred tax assets 2016 $ — $ — $ — $ — 2015 — — 2014 — |
Schedule III - Real Estate Inve
Schedule III - Real Estate Investments | 12 Months Ended |
Dec. 31, 2016 | |
Schedule III - Real Estate Investments [Abstract] | |
Schedule III - Real Estate Iinvestments | QTS REALTY TRUST, INC. QUALITYTECH, LP CONSOLIDATED FINANCIAL STATEMENTS SCHEDULE III – REAL ESTATE INVESTMENTS December 31, 2016 Initial Costs Costs Capitalized Subsequent to Acquisition Gross Carrying Amount As of December 31, 2016 Accumulated (dollars in thousands) Buildings and Construction Buildings and Construction Buildings and Construction Depreciation and Date of Property Location Land Improvements in Progress Land Improvements in Progress Land Improvements in Progress Amortization Acquisition Owned Properties Suwanee, Georgia $ $ $ — $ $ $ $ $ $ $ 9/1/2005 Atlanta, Georgia (Metro) — 10/3/2006 Santa Clara, California — — — — 11/1/2007 Richmond, Virginia — 3/20/2010 Sacramento, California — — 12/21/2012 Princeton, New Jersey — 6/30/2014 Irving, Texas — — 2/8/2013 Chicago, Illinois — — 7/8/2014 Piscataway, New Jersey 6/6/2016 Fort Worth, Texas 12/16/2016 Miami, Florida — — 3/6/2008 Lenexa, Kansas — — — 6/3/2011 Duluth, Georgia Office Building — — 12/30/2015 $ $ $ $ $ $ $ $ $ $ Leased Properties Leased facilities acquired in 2015 — 6/16/2015 Jersey City, New Jersey — — — — 11/1/2006 Overland Park, Kansas — — — — — — $ $ $ $ $ $ $ $ $ $ The aggregate gross cost of the Company’s properties for federal income tax purposes was $1.99 billion (unaudited) as of December 31, 2016. The following table reconciles the historical cost and accumulated depreciation for the years ended December 31, 2016, 2015 and 2014 (in thousands): Year Ended December 31, 2016 2015 2014 Property Balance, beginning of period $ $ $ Disposals Additions (acquisitions and improvements) Balance, end of period $ $ $ Accumulated depreciation Balance, beginning of period $ $ $ Disposals Additions (depreciation and amortization expense) Balance, end of period $ $ $ |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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. In 2016, the Company adopted ASU 2015-02, Amendments to the Consolidation Analysis. This standard amends certain guidance applicable to the consolidation of various legal entities, including variable interest entities (“VIE”). The Company evaluated the application of the ASU and concluded that no change was required to its accounting for its interest in the Operating Partnership. However, under the new guidance, the Operating Partnership now meets the definition and criteria of a VIE and the Company is the primary beneficiary of the VIE. As discussed below, the Company’s only material asset is its ownership interest in the Operating Partnership, and consequently, all of its assets and liabilities represent those assets and liabilities of the Operating Partnership. The Company’s debt is an obligation of the Operating Partnership where the creditors may have recourse, under certain circumstances, against the credit of the Company. 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 subsidiary formed 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. However, 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 “Code”). The consolidated financial statements of QTS Realty Trust, Inc. 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. |
Reclassifications | Reclassifications – The consolidated balance sheet at December 31, 2015 reflects a reclassification of $3.1 million from Deferred Costs, net to Unsecured Credit Facility, net, and $7.1 million from Deferred Costs, net to Senior Notes, net of discount and debt issuance costs as required by the Company’s adoption of ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” |
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, 2016, depreciation expense related to real estate assets and non-real estate assets was $77.5 million and $13.1 million, respectively, for a total of $90.6 million. 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. 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 $11.0 million, $10.8 million and $10.6 million for the years ended December 31, 2016, 2015 and 2014 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 $11.4 million, $9.8 million and $6.5 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Acquisitions | Acquisitions – 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, construction in progress, 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. The total carrying amount of acquired in-place leases was $32.1 million and $16.9 million and accumulated amortization related to acquired in-place leases was $7.2 million and $2.5 million for the years ended December 31, 2016 and 2015, respectively. 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 $4.7 million, $1.7 million and $2.2 million for the years ended December 31, 2016, 2015 and 2014, respectively. This amortization expense is accounted for as real estate amortization expense. The total carrying amount of customer relationships was $95.7 million and $86.1 million and accumulated amortization related to customer relationships was $12.4 million and $7.7 million for the years ended December 31, 2016 and 2015, 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 $10.1 million, $5.0 million and $1.3 million for the years ended December 31, 2016, 2015 and 2014, respectively. This amortization expense is accounted for as real estate amortization expense. The current period amortization includes a $1.0 million adjustment related to an increase in the purchase price allocation of the acquired customer relationship intangible recorded in the three months ended March 31, 2016, of which $0.7 million related to prior reporting periods. See Note 3 for further detail. 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 $3.2 million and $1.7 million for the years ended December 31, 2016 and 2015, respectively. Trade name amortization expense was $1.0 million and $0.6 million for the years ended December 31, 2016 and 2015, respectively. Above or below market leases are amortized as a reduction to or increase in rental revenue as well as a reduction to rent expense over the remaining lease terms. Amortization of above or below market leases recorded as net offsets to rental revenue totaled $0.9 million for the year ended December 31, 2016, with no such costs incurred for the year ended December 31, 2015. Amortization of above or below market leases recorded as offsets to rent expense totaled $0.2 million and $0.1 million for the years ended December 31, 2016 and 2015, respectively. There was no amortization related to platform, trade name, and above or below market lease intangibles for the year ended December 31, 2014. 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. Net amortization expense related to identifiable intangible assets, including both amortization expense as well as offsets or increases to rental revenue and rent expense, is expected to be approximately $19.0 million, $15.0 million, $12.2 million, $11.8 million and $10.0 million for the years ended December 31, 2017 through December 31, 2021, respectively. See Note 3 for discussion of the final purchase accounting allocation for the acquisition of Carpathia Hosting, Inc. (“Carpathia”) on June 16, 2015, the preliminary purchase price allocation for the Piscataway, New Jersey facility (the “Piscataway facility”) that the Company acquired on June 6, 2016, as well as the preliminary purchase price allocation for the Fort Worth, Texas facility (the “Fort Worth facility”) that the Company acquired on December 16, 2016. |
Impairment of Long-Lived and Intangible Assets | 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. During 2016, the Company elected to write off approximately $1.9 million related to certain software to utilize different solutions, of which approximately $1.0 million related to software for its federal cloud product as well as $0.9 million related to an identify governance access management software. No impairment losses were recorded for the years ended December 31, 2016, 2015 and 2014. The fair value of goodwill is the consideration transferred which is not allocable to identifiable intangible and tangible assets. Goodwill is subject to an annual assessment for impairment. As a result of the Carpathia acquisition, the Company recognized approximately $173.8 million in goodwill. In connection with the goodwill impairment evaluation that the Company performed on October 1, 2016, 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. As discussed above in Reclassifications , the Company adopted ASU 2015-03 during the year ended December 31, 2016. Pursuant to this updated guidance, debt issuance costs related to revolving debt arrangements are permitted to be deferred and presented as assets on the balance sheet; however, all other debt issuance costs must be recorded as a direct offset to the associated liability. As such, deferred financing costs on the Company’s consolidated balance sheets represent costs incurred in connection with obtaining only revolving debt arrangements. These costs are amortized over the term of the loan and are included in interest expense. Amortization of debt issuance costs, including those costs presented as offsets to the associated liability in the consolidated balance sheet, was $3.3 million, $3.2 million and $2.7 million for the years ended December 31, 2016, 2015 and 2014, respectively. During the year ended December 31, 2016, the Company wrote off unamortized financing costs of $0.2 million to the income statement in connection with the modification of its unsecured credit facility in December 2016 whereby the company increased the total capacity and extended the term for an additional year. 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 as well as the amendment of its unsecured credit facility in October 2015 whereby the Company increased the unsecured credit facility capacity, and, at the same time, terminated its Richmond credit facility. Deferred financing costs related to revolving debt arrangements, net of accumulated amortization are as follows: December 31, December 31, (dollars in thousands) 2016 2015 Deferred financing costs $ $ Accumulated amortization Deferred financing costs, net $ $ 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 $15.2 million, $11.8 million and $9.4 million for the years ended December 31, 2016, 2015 and 2014, respectively. Deferred leasing costs, net of accumulated amortization are as follows: December 31, December 31, (dollars in thousands) 2016 2015 Deferred leasing costs $ $ Accumulated amortization Deferred leasing costs, net $ $ |
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 $22.0 million, $17.0 million and $10.5 million as of December 31, 2016, 2015 and 2014, respectively. Additionally, $9.4 million, $6.0 million and $4.7 million of deferred income was amortized into revenue for the years ended December 31, 2016, 2015 and 2014, respectively. |
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 $10.6 million, $7.0 million and $4.2 million for the years ended December 31, 2016, 2015 and 2014, 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 $17.3 million and $9.1 million as of December 31, 2016 and December 31, 2015, 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 $4.2 million and $5.1 million as of December 31, 2016 and December 31, 2015, 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 $18.1 million and $26.9 million as of December 31, 2016 and 2015, respectively. The outstanding liabilities for the lease financing obligations were $20.6 million and $22.8 million as of December 31, 2016 and 2015, respectively. The net book value of the assets associated with these leases was approximately $41.5 million and $51.0 million as of December 31, 2016 and 2015, 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 Asia. |
Customer Concentrations | Customer Concentrations – As of December 31, 2016, one of the Company’s customers represented 13.0% of its total monthly rental revenue. No other customers exceeded 4% of total monthly rental revenue. As of December 31, 2016, nine of the Company’s customers exceeded 5% of total accounts receivable. In aggregate, these nine customers accounted for 73% of total accounts receivable. Two of these nine customers individually exceeded 10% of total accounts receivable. |
Income Taxes | Income Taxes – The Company has elected for two of its existing subsidiaries to be taxed as taxable REIT subsidiaries 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 Company’s 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 would be realized by the Company, and the valuation allowance was eliminated. The change in the valuation allowance resulting from the change in circumstances was included in income, and recognized as a deferred income tax benefit in the year ended December 31, 2015. In addition to the deferred income tax benefit recognized in the year ended December 31, 2015 in connection with the elimination of the valuation allowance, a deferred tax benefit was recognized in the year ended December 31, 2016 in connection with recorded operating losses. As of December 31, 2016, this taxable REIT subsidiary has a net deferred tax liability position primarily due to 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, 2016 2015 2014 Deferred tax liabilities Property and equipment $ $ $ Goodwill — Intangibles — Other Gross deferred tax liabilities Deferred tax assets Net operating loss carryforwards Deferred revenue and setup charges Leases — Credits — Other Gross deferred tax assets Net deferred tax assets Valuation allowance — — Net deferred $ $ $ — The taxable REIT subsidiaries currently have $45.5 million of net operating loss carryforwards related to federal income taxes that expire in 13-20 years. The taxable REIT subsidiaries also have $50.3 million of net operating loss carryforwards relating to state income taxes that expire in 3-20 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 46.5%, 34.8% and 0% for the years ended December 31, 2016, 2015 and 2014, respectively. The increase in the effective tax rate in 2016 is primarily due to state tax rate changes and return-to-provision adjustments. 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, 2016 2015 2014 TRS Statutory rate of 34% applied to pre-tax income (loss) $ $ $ Permanent differences, net State income tax, net of federal benefit Foreign income tax — — Valuation allowance (decrease) increase — Total tax expense (benefit) $ $ $ — Effective tax rate As of December 31, 2016, 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, 2016, 2015 and 2014, 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. There are no financial assets or liabilities measured at fair value on a recurring basis on the consolidated balance sheets as of December 31, 2016 and 2015. The Company’s purchase price allocations of Carpathia and Piscataway are fair value estimates that utilized Level 3 inputs and are measured on a non-recurring basis. See Note 3 for further detail. |
Recent Accounting Pronouncements | Recent 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. In April 2016, the FASB finalized amendments to the guidance on identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB finalized amendments to the guidance related to the assessment of collectibility, the definition of completed contracts at transition, and the measurement of the fair value of non-cash consideration at contract inception. The FASB also added new practical expedients for the presentation of sales taxes collected from customers and the accounting for contract modifications at transition. These amendments are not intended to change the core principles of the standard; however, they are intended to clarify important aspects of the guidance and improve its operability, as well as to address implementation issues. The amendments have the same effective date and transition requirements as the new revenue standard, which is effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted; however, entities are not permitted to adopt the standard earlier than December 15, 2016, the original effective date. Retrospective and modified retrospective application is allowed. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which supersedes the current lease guidance in ASC 840, Leases. 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, with 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 plans to adopt ASC Topic 842 and ASC Topic 606 effective January 1, 2018. The Company is currently assessing the method of adoption for both standards. The new standard more narrowly defines initial direct costs as only costs that are incremental at the signing of a lease. As the Company does not currently capitalize material non-incremental costs, it expects the impact of this change to be immaterial to the financial statements. As lessee the Company does not anticipate the classification of its leases to change but it will recognize a new initial lease liability and right-of-use asset on the consolidated balance sheet for all operating leases. ASC 606 consolidates and simplifies the accounting for other arrangements such as those within the Company’s cloud and managed services portfolio, and the Company is continuing to evaluate the other impacts of ASC Topic 842 and ASC Topic 606 on its significant accounting policies and consolidated financial statements. The Company will disclose any changes to this analysis if identified. 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. 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. The Company adopted this standard in the three months ended March 31, 2016. See Reclassifications in Note 2 for further detail. In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments , that eliminates the requirement to restate prior period financial statements for measurement period adjustments. 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, and should be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. The Company adopted this standard during the year ended December 31, 2016, and the effect is reflected in the financial statements accordingly. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , which amends ASC 718, Compensation – Stock Compensation. The ASU includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements, including simplified income tax accounting for stock-based compensation, enhanced tax withholding rules, accounting policy options with regard to forfeitures and clarified guidance on statement of cash flow presentation. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, 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. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) : Classification of Certain Cash Receipts and Cash Payments. The standard provides guidance on eight specific cash flow classification issues including debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, and separately identifiable cash flows and application of the predominance principle. The standard will be effective for fiscal years beginning January 1, 2018, and subsequent interim periods. The Company does not expect the provisions of the standard will have a material impact on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory . Under current GAAP, the tax effects of intra-entity asset transfers are deferred until the transferred asset is sold to a third party or otherwise recovered through use. The new guidance eliminates the exception for all intra-entity sales of assets other than inventory. As a result, a reporting entity would recognize the tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. Any deferred tax asset that arises in the buyer’s jurisdiction would also be recognized at the time of the transfer. The new guidance will be effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those years. Early adoption is permitted, but the guidance can only be adopted in the first interim period of a fiscal year. The Company is currently assessing the impact of this standard on its consolidated financial statements. In January 2017, the FASB issued guidance codified in ASC Topic 2017-01 , Business Combinations (Topic 805): Clarifying the Definition of a Business . The standard changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. The guidance is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those years. Early adoption is permitted. As a result of this new guidance acquisitions may now result in an asset purchase rather than a business combination. In January 2017, the FASB issued guidance codified in ASC Topic 2017-04 , Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The new guidance eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of today’s goodwill impairment test) to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value (i.e., measure the charge based on today’s Step 1). The guidance will be applied prospectively and is effective for calendar year-end SEC filers in 2020, with early adoption permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The Company does not expect the provisions of the standard will have a material impact on its consolidated financial statements. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Deferred Financing Costs, Net of Accumulated Amortization | December 31, December 31, (dollars in thousands) 2016 2015 Deferred financing costs $ $ Accumulated amortization Deferred financing costs, net $ $ |
Deferred Leasing Costs, Net of Accumulated Amortization | December 31, December 31, (dollars in thousands) 2016 2015 Deferred leasing costs $ $ Accumulated amortization Deferred leasing costs, net $ $ |
Summary of Temporary Differences and Carry Forwards Which Give Rise to the Deferred Tax Assets and Liabilities | For the Year Ended December 31, 2016 2015 2014 Deferred tax liabilities Property and equipment $ $ $ Goodwill — Intangibles — Other Gross deferred tax liabilities Deferred tax assets Net operating loss carryforwards Deferred revenue and setup charges Leases — Credits — Other Gross deferred tax assets Net deferred tax assets Valuation allowance — — Net deferred $ $ $ — |
Schedule of Differences between Total Income Tax or Benefit and Amount Computed by Applying the Statutory Income Tax Rate | For the Year Ended December 31, 2016 2015 2014 TRS Statutory rate of 34% applied to pre-tax income (loss) $ $ $ Permanent differences, net State income tax, net of federal benefit Foreign income tax — — Valuation allowance (decrease) increase — Total tax expense (benefit) $ $ $ — Effective tax rate |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 and 2014 (in thousands): (Unaudited) Pro Forma Condensed Consolidated Statements of Operations Year Ended December 31, 2015 2014 Revenue $ $ Net income $ $ |
Fort Worth Facility | |
Schedule of the Preliminary Allocation of the Fair Value of Assets Acquired and Liabilities Assumed in Acquisition | Fort Worth Allocation as of Land $ Buildings and improvements Construction in progress Acquired intangibles Deferred costs Other assets Net Working Capital Total identifiable assets acquired $ |
Piscataway Facility | |
Schedule of the Preliminary Allocation of the Fair Value of Assets Acquired and Liabilities Assumed in Acquisition | Piscataway Allocation as of Original Allocation Reported as of June 30, 2016 Adjusted Fair Value Land $ $ $ Buildings and improvements Construction in progress — Acquired intangibles Deferred costs Other assets — Total identifiable assets acquired Acquired below market lease Net working capital — Total liabilities assumed Net identifiable assets acquired $ $ $ — |
Carpathia Hosting, Inc. | |
Schedule of the Preliminary Allocation of the Fair Value of Assets Acquired and Liabilities Assumed in Acquisition | Final Carpathia Land $ Buildings and improvements Construction in progress Acquired intangibles Net working capital Total identifiable assets acquired Capital lease and lease financing obligations Deferred income taxes Acquired above market lease Total liabilities assumed Net identifiable assets acquired Goodwill Net assets acquired $ |
Real Estate Assets and Constr28
Real Estate Assets and Construction in Progress (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 (in thousands): As of December 31, 2016: Property Location Land Buildings and Improvements Construction Total Cost Owned Properties Suwanee, Georgia (Atlanta-Suwanee) $ $ $ $ Atlanta, Georgia (Atlanta-Metro) Santa Clara, California* — Richmond, Virginia Sacramento, California Princeton, New Jersey Irving, Texas Chicago, Illinois Piscataway, New Jersey Fort Worth, Texas Miami, Florida Lenexa, Kansas — Duluth, Georgia Office Building Leased Properties Leased facilities acquired in 2015 *** Jersey City, New Jersey — Overland Park, Kansas — ** $ $ $ $ * 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 12 facilities. All facilities are leased, including those subject to capital leases. As of December 31, 2015: Property Location Land Buildings and Construction Total Cost Owned Properties Suwanee, Georgia (Atlanta-Suwanee) $ $ $ $ Atlanta, Georgia (Atlanta-Metro) Santa Clara, California* — Richmond, Virginia Sacramento, California Princeton, New Jersey Irving, Texas Chicago, Illinois — — Miami, Florida Lenexa, Kansas — Duluth, Georgia Office Building — Leased Properties Leased facilities acquired in 2015 *** Jersey City, New Jersey — Overland Park, Kansas — ** $ $ $ $ * 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. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt [Abstract] | |
Outstanding Debt Including Capital Leases and Lease Financing Obligations | Below is a listing of the Company’s outstanding debt, including capital leases and lease financing obligations, as of December 31, 2016 and 2015 (in thousands): Weighted Average Coupon Interest Rate at December 31, December 31, December 31, 2016 Maturities 2016 2015 Unsecured Credit Facility Revolving Credit Facility December 17, 2020 $ $ Term Loan I December 17, 2021 Term Loan II April 27, 2022 Senior Notes August 1, 2022 Capital Lease and Lease Financing Obligations 2017 - 2025 Less discount and net debt issuance costs Total outstanding debt, net $ $ |
Annual Remaining Principal Payment | The annual remaining principal payment requirements as of December 31, 2016 per the contractual maturities and excluding extension options, capital leases and lease financing obligations, are as follows (in thousands): 2017 $ — 2018 — 2019 — 2020 2021 Thereafter Total $ |
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, 2016, on the capital leases and lease financing obligations above (in thousands): 2017 $ 2018 2019 2020 2021 Thereafter Total $ |
Partners' Capital, Equity and30
Partners' Capital, Equity and Incentive Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, 2015 and 2014: 2010 Equity Incentive Plan 2013 Equity Incentive Plan Weighted Weighted Weighted Weighted Weighted average Weighted average average Number of average Average fair Number of Grant date average fair Restricted Grant date Class O units exercise price value Class RS units value Options exercise price value Stock value Outstanding at January 1, 2014 $ $ $ $ $ $ Granted — — — — — Exercised/Vested (1) — — Released from restriction (2) — — — — — — — — Cancelled/Expired (3) — — Outstanding at December 31, 2014 $ $ $ $ $ $ Granted — — — — — Exercised/Vested (1) — — Released from restriction (2) — — — — — — — — Cancelled/Expired (3) — — Outstanding at December 31, 2015 $ $ $ $ $ $ Granted — — — — — Exercised/Vested (1) — — Released from restriction (2) — — — — — — — — Cancelled/Expired (3) — — — — — Outstanding at December 31, 2016 $ $ — $ — $ $ $ (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. This also represents Class O units which were converted to Class A units and Options to purchase Class A common stock which were exercised for their respective columns. (2) This represents Class RS units that upon vesting have converted to Operating Partnership units. (3) Includes 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, 2016, 2015 and 2014 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. 2016 2015 2014 Fair value of restricted stock granted $45.78-$56.28 $35.81-$37.69 $25.51-$35.51 Fair value of options granted $9.57-$9.97 $8.00-$8.77 $4.94-$5.98 Expected term (years) 5.5-5.9 5.5-6.1 5.5-6.1 Expected volatility 30.7%-31.3% Expected dividend yield 3.40%-3.57% 4.02%-4.55% Expected risk-free interest rates 1.42%-1.48% 1.67%-1.94% 1.7%-1.9% |
Summary of Information About Awards Outstanding | The following tables summarize information about awards outstanding as of December 31, 2016. Operating Partnership Awards Outstanding Weighted average Awards remaining Exercise prices outstanding vesting period (years) Class O Units $ 20.00-25.00 — Total Operating Partnership awards outstanding QTS Realty Trust, Inc. Awards Outstanding Weighted average Awards remaining Exercise prices outstanding vesting period (years) Restricted stock $ — 1.6 Options to purchase Class A common stock $ 21.00-45.78 0.9 Total QTS Realty Trust, Inc. awards outstanding |
Schedule of Quarterly Cash Dividends | Year Ended December 31, 2016 Aggregate Per Common Share and Dividend/Distribution Record Date Payment Date Per Unit Rate Amount (in millions) September 20, 2016 October 5, 2016 $ $ June 17, 2016 July 6, 2016 March 18, 2016 April 5, 2016 December 17, 2015 January 6, 2016 $ $ Year Ended December 31, 2015 Aggregate Per Common Share and Dividend/Distribution Record Date Payment Date Per Unit Rate Amount (in millions) September 18, 2015 October 6, 2015 $ $ June 19, 2015 July 8, 2015 March 20, 2015 April 7, 2015 December 19, 2014 January 7, 2015 $ $ |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Summary of Related Party Transactions | The transactions which occurred during the years ended December 31, 2016, 2015 and 2014 are outlined below (in thousands): December 31, (dollars in thousands) 2016 2015 2014 Tax, utility, insurance and other reimbursement $ $ $ Rent expense Capital assets acquired Total $ $ $ |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 December 31, 2016 2015 2014 Numerator: Net income available to common stockholders - basic $ $ $ Effect of net income attributable to noncontrolling interests Net income available to common stockholders - diluted $ $ $ Denominator: Weighted average shares outstanding - basic Effect of Class A and Class RS partnership units * Effect of Class O units and options to purchase Class A common stock on an "as if" converted basis * Weighted average shares outstanding - diluted Net income per share attributable to common stockholders - basic $ $ $ Net income per share attributable to common stockholders - diluted $ $ $ |
Operating Leases, as Lessee (Ta
Operating Leases, as Lessee (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 are as follows (in thousands): Year Ending December 31, 2017 $ 2018 2019 2020 2021 Thereafter Total $ |
Customer Leases, as Lessor (Tab
Customer Leases, as Lessor (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 (inclusive of payments for contracts which have not yet commenced and exclusive of recoveries of operating costs from customers) are as follows for the years ending December 31 (in thousands): 2017 $ 2018 2019 2020 2021 Thereafter Total $ |
Quarterly Financial Informati35
Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Selected Quarterly Information | The tables below reflect the selected quarterly information for the years ended December 31, 2016 and 2015 for QTS (in thousands except share data): + Three Months Ended December 31, September 30, June 30, March 31, 2016 Revenues $ $ $ $ Operating income Net income Net income attributable to common shares Net income per share attributable to common shares - basic Net income per share attributable to common shares - diluted 2015 Revenues $ $ $ $ Operating income Net income Net income attributable to common shares Net income per share attributable to common shares - basic Net income per share attributable to common shares - diluted |
Qualitytech, LP [Member] | |
Summary of Selected Quarterly Information | The table below reflects the selected quarterly information for the years ended December 31, 2016 and 2015 for the Operating Partnership (in thousands): Three Months Ended December 31, September 30, June 30, March 31, 2016 Revenues $ $ $ $ Operating income Net income 2015 Revenues $ $ $ $ Operating income Net income |
Description of Business (Narrat
Description of Business (Narrative) (Details) | Dec. 31, 2016property$ / sharesshares | Dec. 31, 2015$ / sharesshares | May 17, 2013$ / sharesshares |
Organization And Description Of Business [Line Items] | |||
Number of properties | property | 25 | ||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | |
Common stock, shares issued | shares | 47,831,250 | 47,831,250 | |
Carpathia Hosting, Inc. | |||
Organization And Description Of Business [Line Items] | |||
Ownership interest | 87.60% | ||
Common Class A [Member] | |||
Organization And Description Of Business [Line Items] | |||
Common stock, par value | $ / shares | $ 0.01 | ||
Common stock, shares issued | shares | 14,087,500 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 23, 2015 | Jul. 23, 2014 | |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Deferred costs, net | $ 38,507 | $ 30,042 | ||||
Unsecured credit facility, net | 634,939 | 520,956 | ||||
Senior notes, net of discount and debt issuance costs | $ 292,179 | 290,852 | ||||
Useful life of property | 40 years | |||||
Depreciation expense from operation | $ 90,600 | 65,000 | $ 45,400 | |||
Real estate cost capitalized excluding interest cost | 11,000 | 10,800 | 10,600 | |||
Real estate interest cost capitalized incurred | 11,400 | 9,800 | 6,500 | |||
Amortization of below market lease | 900 | 0 | ||||
Amortization of above and below market leases | 200 | 100 | 0 | |||
Amortization of intangible assets and offsets to revenue in 2017 | 19,000 | |||||
Amortization of intangible assets and offsets to revenue in 2018 | 15,000 | |||||
Amortization of intangible assets and offsets to revenue in 2019 | 12,200 | |||||
Amortization of intangible assets and offsets to revenue in 2020 | 11,800 | |||||
Amortization of intangible assets and offsets to revenue in 2021 | 10,000 | |||||
Carrying amount of acquired in-place leases | 32,100 | 16,900 | ||||
Carrying amount of customer relationships | 95,700 | 86,100 | ||||
Amortization adjustment | $ 1,000 | 700 | ||||
Amortization of the deferred financing costs | 3,285 | 3,181 | 2,673 | |||
Deferred leasing costs, net | 6,983 | 6,263 | ||||
Accounting Standards Update 201503 [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Deferred costs, net | (3,100) | |||||
Unsecured credit facility, net | 3,100 | |||||
Senior notes, net of discount and debt issuance costs | 7,100 | |||||
In Place Leases [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Accumulated amortization | 7,200 | 2,500 | ||||
Amortization of lease costs | 4,700 | 1,700 | 2,200 | |||
Tenant Relationship [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Accumulated amortization | 12,400 | 7,700 | ||||
Amortization of intangible assets | 10,100 | 5,000 | 1,300 | |||
Platform [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Amortization of intangible assets | 3,200 | 1,700 | 0 | |||
Trade Names [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Amortization of intangible assets | 1,000 | 600 | 0 | |||
Qualitytech, LP [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Deferred costs, net | 38,507 | 30,042 | ||||
Unsecured credit facility, net | 634,939 | 520,956 | ||||
Senior notes, net of discount and debt issuance costs | 292,179 | 290,852 | ||||
Amortization of the deferred financing costs | 3,285 | 3,181 | 2,673 | |||
Real Estate Assets [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Depreciation expense from operation | 77,500 | 55,200 | 39,000 | |||
Non-Real Estate Assets [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Depreciation expense from operation | $ 13,100 | 9,800 | $ 6,400 | |||
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 | |||||
Deferred leasing costs, net | $ 6,100 | |||||
Senior Notes [Member] | Accounting Standards Update 201503 [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Deferred costs, net | $ (7,100) | |||||
Carpathia Hosting, Inc. | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Annual amortization for intangible assets for 2019 | 8,000 | |||||
Annual amortization for intangible assets for 2016 | $ 9,900 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Additional Information 1) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2016 | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Software impairment | $ 1,900 | ||||
Impairment losses | 0 | $ 0 | $ 0 | ||
Goodwill | $ 181,738 | 173,843 | 181,738 | ||
Amortization of the deferred financing costs | 3,285 | 3,181 | 2,673 | ||
Written off unamortized debt cost | 500 | ||||
Amortization of deferred leasing costs totaled | 15,200 | 11,800 | 9,400 | ||
Deferred income | 16,991 | 21,993 | 16,991 | ||
Amortization of deferred revenue | 9,400 | 6,000 | 4,700 | ||
Deferred leasing costs, net | 6,263 | 6,983 | 6,263 | ||
Company recorded equity-based compensation expense net of repurchased awards and forfeits | 10,600 | 7,000 | 4,200 | ||
Amount of the straight-line rent receivable on the balance sheets included in rents and other receivables, net | $ 9,100 | 17,300 | 9,100 | ||
Unsecured Revolving Credit Facility [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Amortization of the deferred financing costs | 3,300 | $ 3,200 | $ 2,700 | ||
Written off unamortized debt cost | 200 | ||||
Carpathia Hosting, Inc. | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Goodwill | $ 173,843 | ||||
Federal cloud product | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Software impairment | 1,000 | ||||
Governance access management software | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Software impairment | $ 900 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (Deferred Financing Costs, Net of Accumulated Amortization) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of Significant Accounting Policies [Abstract] | ||
Deferred financing costs | $ 7,128 | $ 6,652 |
Accumulated amortization | (145) | (389) |
Deferred financing costs, net | $ 6,983 | $ 6,263 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Deferred Leasing Costs, Net of Accumulated Amortization) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of Significant Accounting Policies [Abstract] | ||
Deferred leasing costs | $ 50,026 | $ 36,748 |
Accumulated amortization | (18,502) | (12,970) |
Deferred leasing costs, net | $ 31,524 | $ 23,778 |
Summary of Significant Accoun41
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax liabilities | |||
Property and equipment | $ (15,031) | $ (16,032) | $ (5,784) |
Goodwill | (1,290) | (407) | |
Intangibles | (24,244) | (23,896) | |
Other | (1,927) | (2,350) | (1,427) |
Gross deferred tax liabilities | (42,492) | (42,685) | (7,211) |
Deferred tax assets | |||
Net operating loss carryforwards | 17,642 | 14,107 | 9,137 |
Deferred revenue and setup charges | 4,323 | 3,747 | 868 |
Leases | 2,154 | 3,097 | |
Other credits | 492 | 630 | |
Other | 2,696 | 2,291 | 601 |
Gross deferred tax assets | 27,307 | 23,872 | 10,606 |
Net deferred tax assets | (15,185) | (18,813) | 3,395 |
Deferred income taxes | 42,492 | 42,685 | 7,211 |
Valuation allowance | $ (3,395) | ||
Net deferred | $ 15,185 | $ 18,813 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (Additional Information 2) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)segmententity | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Aggregate allowance for doubtful accounts | $ 4,200 | $ 5,100 | |
Capital lease obligations | 18,100 | 26,900 | |
Lease financing obligations | 20,600 | 22,800 | |
Net book value of assets associated with leases | $ 41,500 | 51,000 | |
Number of operating segments | segment | 1 | ||
Number of reportable segments | segment | 1 | ||
Valuation allowance | $ 3,395 | ||
Financial assets | $ 0 | 0 | |
Financial liability | 0 | 0 | |
Net operating loss carry forwards related to Federal income taxes | 45,500 | ||
Net operating loss carry forwards related to State income taxes | 50,300 | ||
Unrecognized Tax Benefits | 0 | 0 | 0 |
Interest and penalties related to income taxes | $ 0 | $ 0 | $ 0 |
Number of subsidiaries taxed as taxable REIT | entity | 2 | ||
Effective tax rate | 46.50% | 34.80% | 0.00% |
Initial lease liability | $ 38,708 | ||
Minimum [Member] | Federal [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Net operating loss carry forwards, expiration period | 13 years | ||
Minimum [Member] | State [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Net operating loss carry forwards, expiration period | 3 years | ||
Maximum [Member] | State [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Net operating loss carry forwards, expiration period | 20 years | ||
Customer One [Member] | Rental Revenue [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of total revenue | 13.00% | ||
Two Customers [Member] | Accounts Receivable [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of total accounts receivable | 10.00% | ||
Other Customers [Member] | Rental Revenue [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of total revenue | 4.00% | ||
Nine Customers [Member] | Accounts Receivable [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of total accounts receivable | 5.00% | ||
Nine Customers [Member] | Accounts Receivable [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of total accounts receivable | 73.00% | ||
Carpathia Hosting, Inc. | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Lease financing obligations | $ 20,600 |
Summary of Significant Accoun43
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of Significant Accounting Policies [Abstract] | |||
Statutory rate of 34% applied to pre-tax income (loss) | $ (7,299) | $ (6,683) | $ (1,793) |
Permanent differences, net | (2,021) | 281 | 128 |
State income tax, net of federal benefit | (689) | (268) | (365) |
Foreign income tax | 33 | ||
Valuation allowance (decrease) increase | (3,395) | $ 2,030 | |
Total tax expense (benefit) | $ (9,976) | $ (10,065) | |
Effective tax rate | 46.50% | 34.80% | 0.00% |
Statutory rate | 34.00% |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) $ in Thousands | Dec. 16, 2016USD ($)MW | Jun. 06, 2016USD ($)ft²aMW | Jun. 16, 2015USD ($)propertycustomer | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 16, 2016ft² | Dec. 16, 2016a | Mar. 23, 2015USD ($) | Jul. 23, 2014USD ($) |
Business Acquisition [Line Items] | ||||||||||
Number of customers of acquired entity | customer | 230 | |||||||||
Number of domestic data centers acquired | property | 8 | |||||||||
Number of international data centers acquired | property | 5 | |||||||||
Cash consideration paid for acquisition | $ 279,905 | $ 320,058 | $ 201,145 | |||||||
Above Market Leases | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Amortization of intangible assets in 2017 | 200 | |||||||||
Amortization of intangible assets in 2018 | 200 | |||||||||
Amortization of intangible assets in 2019 | 200 | |||||||||
Amortization of intangible assets in 2020 | 200 | |||||||||
Amortization of intangible assets in 2021 | 200 | |||||||||
Fort Worth Facility | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquisition costs | $ 50,100 | |||||||||
Area of facility (in square feet) | 262,000 | 53 | ||||||||
Fort Worth Facility | Raised Floor With 18 MW of Critical Power | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Area of facility (in square feet) | ft² | 80,000 | |||||||||
Fort Worth Facility | Additional Raised Floor With 8 MW of Additional Critical Power | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Capacity of the plant (in MW) | MW | 8 | |||||||||
Piscataway Facility | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquisition costs | $ 125,800 | |||||||||
Amortization of intangible assets in 2017 | 4,000 | |||||||||
Amortization of intangible assets in 2018 | 2,900 | |||||||||
Amortization of intangible assets in 2019 | 2,300 | |||||||||
Amortization of intangible assets in 2020 | 1,700 | |||||||||
Amortization of intangible assets in 2021 | $ 500 | |||||||||
Acres of real estate property | a | 38 | |||||||||
Area of facility (in square feet) | ft² | 360,000 | |||||||||
Piscataway Facility | Offsets To Rental Revenue [Member] | Above And Below Market Leases [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Amortization of intangible assets in 2017 | $ 1,100 | |||||||||
Amortization of intangible assets in 2018 | 700 | |||||||||
Amortization of intangible assets in 2019 | 500 | |||||||||
Amortization of intangible assets in 2020 | 600 | |||||||||
Amortization of intangible assets in 2021 | $ 0 | |||||||||
Piscataway Facility | Raised Floor With 18 MW of Critical Power | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Area of facility (in square feet) | ft² | 89,000 | |||||||||
Capacity of the plant (in MW) | MW | 18 | |||||||||
Piscataway Facility | Additional Raised Floor With 8 MW of Additional Critical Power | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Area of facility (in square feet) | ft² | 87,000 | |||||||||
Capacity of the plant (in MW) | MW | 8 | |||||||||
Carpathia Hosting, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquisition costs | $ 373,600 | |||||||||
Tax basis of deductible amount of goodwill acquired | $ 16,600 | |||||||||
Amortization of intangible assets in 2017 | 12,200 | |||||||||
Amortization of intangible assets in 2018 | 9,900 | |||||||||
Amortization of intangible assets in 2019 | 8,000 | |||||||||
Amortization of intangible assets in 2020 | 8,000 | |||||||||
Amortization of intangible assets in 2021 | $ 8,000 | |||||||||
Senior Notes [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Notes issued | $ 300,000 | $ 300,000 | ||||||||
Carpathia Hosting, Inc. | Carpathia Hosting, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Ownership interest | 100.00% |
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 | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | |||||
Land | $ 3,030 | $ 7,602 | $ 17,976 | ||
Buildings, improvements and equipment | 80,818 | 80,975 | 35,865 | ||
Construction in process | 12,127 | 62,884 | 17,764 | ||
Deferred costs | 4,414 | $ 3,345 | |||
Other assets | 633 | 309 | |||
Capital lease and lease financing obligations | 43,832 | ||||
Deferred income taxes | 21,673 | 6,045 | |||
Goodwill | 181,738 | 173,843 | |||
Amortization adjustment | $ 1,000 | $ 700 | |||
Fort Worth Facility | |||||
Business Acquisition [Line Items] | |||||
Land | 136 | ||||
Buildings, improvements and equipment | 610 | ||||
Construction in process | 48,984 | ||||
Acquired intangibles | 240 | ||||
Deferred costs | 23 | ||||
Other assets | 7 | ||||
Net working capital | 86 | ||||
Net identifiable assets acquired | 50,086 | ||||
Piscataway Facility | |||||
Business Acquisition [Line Items] | |||||
Land | 7,466 | ||||
Buildings, improvements and equipment | 80,366 | ||||
Construction in process | 13,900 | ||||
Acquired intangibles | 19,581 | ||||
Deferred costs | 4,390 | ||||
Other assets | 106 | ||||
Total identifiable assets acquired | 125,809 | ||||
Aquired above market lease | 809 | ||||
Net working capital | 2,019 | ||||
Total liabilities assumed | 2,828 | ||||
Net identifiable assets acquired | $ 122,981 | ||||
Piscataway Facility | Original Allocation Reported | |||||
Business Acquisition [Line Items] | |||||
Land | $ 7,440 | ||||
Buildings, improvements and equipment | 78,370 | ||||
Construction in process | 13,900 | ||||
Acquired intangibles | 21,668 | ||||
Deferred costs | 4,084 | ||||
Other assets | 106 | ||||
Total identifiable assets acquired | 125,568 | ||||
Aquired above market lease | 568 | ||||
Net working capital | 2,019 | ||||
Total liabilities assumed | 2,587 | ||||
Net identifiable assets acquired | 122,981 | ||||
Piscataway Facility | Adjustment | |||||
Business Acquisition [Line Items] | |||||
Land | 26 | ||||
Buildings, improvements and equipment | 1,996 | ||||
Acquired intangibles | (2,087) | ||||
Deferred costs | 306 | ||||
Total identifiable assets acquired | 241 | ||||
Aquired above market lease | 241 | ||||
Total liabilities assumed | 241 | ||||
Carpathia Hosting, Inc. | |||||
Business Acquisition [Line Items] | |||||
Land | 1,130 | ||||
Buildings, improvements and equipment | 78,898 | ||||
Construction in process | 12,127 | ||||
Acquired intangibles | 108,100 | ||||
Net working capital | 2,851 | ||||
Total identifiable assets acquired | 203,106 | ||||
Capital lease and lease financing obligations | 43,832 | ||||
Deferred income taxes | 35,980 | ||||
Aquired above market lease | 2,453 | ||||
Total liabilities assumed | 82,265 | ||||
Net identifiable assets acquired | 120,841 | ||||
Goodwill | 173,843 | ||||
Net assets acquired | $ 294,684 |
Acquisitions (Schedule of Pro F
Acquisitions (Schedule of Pro Forma Information Related to Acquisition) (Details) - Carpathia Hosting, Inc. - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Pro forma revenue | $ 352,529 | $ 299,906 |
Pro forma net income (loss) | $ 28,109 | $ 12,919 |
Real Estate Assets and Constr47
Real Estate Assets and Construction in Progress (Summary of Properties Owned or Leased by the Company) (Details) $ in Thousands | Dec. 31, 2016USD ($)property | Dec. 31, 2015USD ($)property |
Real Estate Properties [Line Items] | ||
Land | $ 74,130 | $ 57,112 |
Buildings and improvements | 1,524,767 | 1,180,386 |
Construction in progress | 365,960 | 345,655 |
Total cost | 1,964,857 | 1,583,153 |
Owned Properties [Member] | ||
Real Estate Properties [Line Items] | ||
Land | 73,000 | 55,982 |
Buildings and improvements | 1,407,515 | 1,061,247 |
Construction in progress | 355,429 | 336,034 |
Total cost | 1,835,944 | 1,453,263 |
Owned Properties [Member] | Suwanee, Georgia (Atlanta-Suwanee) [Member] | ||
Real Estate Properties [Line Items] | ||
Land | 3,521 | 3,521 |
Buildings and improvements | 171,376 | 150,028 |
Construction in progress | 2,013 | 15,330 |
Total cost | 176,910 | 168,879 |
Owned Properties [Member] | Atlanta, Georgia (Atlanta-Metro) [Member] | ||
Real Estate Properties [Line Items] | ||
Land | 15,397 | 15,397 |
Buildings and improvements | 434,965 | 406,190 |
Construction in progress | 32,422 | 41,835 |
Total cost | 482,784 | 463,422 |
Owned Properties [Member] | Santa Clara, California [Member] | ||
Real Estate Properties [Line Items] | ||
Buildings and improvements | 98,708 | 94,437 |
Construction in progress | 7,078 | 1,379 |
Total cost | 105,786 | 95,816 |
Owned Properties [Member] | Richmond, Virginia [Member] | ||
Real Estate Properties [Line Items] | ||
Land | 2,180 | 2,180 |
Buildings and improvements | 237,347 | 208,654 |
Construction in progress | 70,580 | 85,771 |
Total cost | 310,107 | 296,605 |
Owned Properties [Member] | Sacramento, California [Member] | ||
Real Estate Properties [Line Items] | ||
Land | 1,481 | 1,481 |
Buildings and improvements | 62,102 | 61,462 |
Construction in progress | 390 | 73 |
Total cost | 63,973 | 63,016 |
Owned Properties [Member] | Princeton, New Jersey [Member] | ||
Real Estate Properties [Line Items] | ||
Land | 20,700 | 20,700 |
Buildings and improvements | 32,788 | 32,708 |
Construction in progress | 538 | 422 |
Total cost | 54,026 | 53,830 |
Owned Properties [Member] | Dallas-Fort Worth, Texas [Member] | ||
Real Estate Properties [Line Items] | ||
Land | 8,606 | 8,590 |
Buildings and improvements | 204,713 | 71,783 |
Construction in progress | 69,653 | 120,331 |
Total cost | 282,972 | 200,704 |
Owned Properties [Member] | Chicago, Illinois [Member] | ||
Real Estate Properties [Line Items] | ||
Land | 9,400 | |
Buildings and improvements | 45,848 | |
Construction in progress | 100,623 | 70,749 |
Total cost | 155,871 | 70,749 |
Owned Properties [Member] | Piscataway New Jersey [Member] | ||
Real Estate Properties [Line Items] | ||
Land | 7,466 | |
Buildings and improvements | 82,210 | |
Construction in progress | 17,261 | |
Total cost | 106,937 | |
Owned Properties [Member] | Fort Worth, Texas [Member] | ||
Real Estate Properties [Line Items] | ||
Land | 136 | |
Buildings and improvements | 610 | |
Construction in progress | 49,116 | |
Total cost | 49,862 | |
Owned Properties [Member] | Miami, Florida [Member] | ||
Real Estate Properties [Line Items] | ||
Land | 1,777 | 1,777 |
Buildings and improvements | 31,170 | 30,554 |
Construction in progress | 83 | 144 |
Total cost | 33,030 | 32,475 |
Owned Properties [Member] | Lenexa, Kansas [Member] | ||
Real Estate Properties [Line Items] | ||
Land | 437 | 437 |
Buildings and improvements | 3,760 | 3,511 |
Total cost | 4,197 | 3,948 |
Owned Properties [Member] | Deluth, Georgia [Member] | ||
Real Estate Properties [Line Items] | ||
Land | 1,899 | 1,899 |
Buildings and improvements | 1,918 | 1,920 |
Construction in progress | 5,672 | |
Total cost | 9,489 | 3,819 |
Leased Properties [Member] | ||
Real Estate Properties [Line Items] | ||
Land | 1,130 | 1,130 |
Buildings and improvements | 117,252 | 119,139 |
Construction in progress | 10,531 | 9,621 |
Total cost | 128,913 | 129,890 |
Leased Properties [Member] | Carpathia Properties [Member] | ||
Real Estate Properties [Line Items] | ||
Land | 1,130 | 1,130 |
Buildings and improvements | 92,567 | 89,989 |
Construction in progress | 7,671 | 7,196 |
Total cost | $ 101,368 | $ 98,315 |
Number of facilities leased | property | 12 | 13 |
Leased Properties [Member] | Jersey City, New Jersey [Member] | ||
Real Estate Properties [Line Items] | ||
Buildings and improvements | $ 23,723 | $ 28,228 |
Construction in progress | 2,332 | 2,421 |
Total cost | 26,055 | 30,649 |
Leased Properties [Member] | Overland Park, Kansas [Member] | ||
Real Estate Properties [Line Items] | ||
Buildings and improvements | 962 | 922 |
Construction in progress | 528 | 4 |
Total cost | $ 1,490 | $ 926 |
Debt (Unsecured Credit Facility
Debt (Unsecured Credit Facility Narrative) (Details) | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2015USD ($) | Dec. 31, 2016USD ($)item | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |||
Percentage of operating partnerships gross asset value | 15.00% | ||
Debt and Capital Lease Obligations | $ 977,708,000 | $ 873,763,000 | |
Debt instrument, discount | (11,882,000) | (12,194,000) | |
Total outstanding debt, net | 965,826,000 | 861,569,000 | |
Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility accordion feature | 300,000,000 | ||
Outstanding debt | $ 500,000,000 | ||
Term Loan [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument spread on variable interest rate | 2.10% | ||
Term Loan [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument spread on variable interest rate | 0.50% | ||
Term Loan Maturing April 27, 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date | Apr. 27, 2022 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility maximum borrowing capacity | $ 700,000,000 | ||
Maturity date | Dec. 17, 2020 | ||
Credit facility availability | $ 700,000,000 | ||
Maximum percentage of unencumbered asset pool capitalized value | 60.00% | ||
Maximum percentage of unencumbered asset pool capitalised value for two consecutive quarters | 65.00% | ||
Unencumbered asset pool debt yield limit | 14.00% | ||
Unencumbered asset pool debt yield limit for two consecutive quarters | 12.50% | ||
Leverage ratio | 1.70% | ||
Outstanding debt | $ 139,000,000 | $ 224,002,000 | |
Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Letter of credit outstanding | $ 1,500,000 | ||
Number of letters of credit | item | 2 | ||
Minimum [Member] | Term Loan [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument spread on variable interest rate | 1.50% | ||
Minimum [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument spread on variable interest rate | 1.55% | ||
Minimum [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument spread on variable interest rate | 0.55% | ||
Maximum [Member] | Term Loan [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument spread on variable interest rate | 1.10% | ||
Maximum [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument spread on variable interest rate | 2.15% | ||
Maximum [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument spread on variable interest rate | 1.15% | ||
Unsecured Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility maximum borrowing capacity | $ 900,000,000 | $ 1,200,000,000 | |
Line of credit facility accordion feature | 200,000,000 | ||
Increase the amount of line of credit facility | 250,000,000 | ||
Additional borrowing capacity | 300,000,000 | ||
Maximum the credit facility may be increased up until | 1,100,000,000 | 1,500,000 | |
Minimum tangible net worth | $ 1,179,931,500 | ||
Line of credit facility weighted average interest rate outstanding percentage | 2.22% | ||
Credit facility covenant, percentage ownership requirements in addition to minimum tangible net worth | 75.00% | ||
Credit facility covenant, maximum distribution payout ratio of funds from operations | 95.00% | ||
Maximum percentage on gross asset value | 60.00% | ||
Maximum percentage to gross asset value for the next two quarters | 65.00% | ||
Outstanding debt | $ 639,000,000 | ||
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 April 27, 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility maximum borrowing capacity | $ 200,000,000 | ||
Unsecured Credit Facility [Member] | Term Loan Maturing December 17,2021 [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility maximum borrowing capacity | $ 300,000,000 | ||
Maturity date | Dec. 17, 2021 | ||
Unsecured Credit Facility [Member] | Term Loan Maturing December 17, 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 | ||
Debt extension period | 1 year | ||
Maturity date | Dec. 17, 2019 | ||
Chicago Facility [Member] | Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Letter of credit outstanding | $ 500,000 | ||
Piscataway Facility | Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Letter of credit outstanding | $ 100,000 |
Debt (Senior Notes) (Details)
Debt (Senior Notes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Mar. 23, 2015 | Jul. 23, 2014 | |
Debt Instrument [Line Items] | ||||
Debt issuance costs, net | $ 6,983 | $ 6,263 | ||
Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs, net | 4,100 | |||
Unsecured Credit Facility [Member] | Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Unsecured term loan outstanding | $ 75,000 | |||
Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 300,000 | $ 300,000 | ||
Interest rate | 5.875% | 5.875% | 5.875% | |
Senior notes due | 2,022 | |||
Maturity date | Aug. 1, 2022 | |||
Debt discount recorded | $ 1,800 | |||
Debt issuance costs, net | $ 6,100 | |||
Percentage of issued price equal to face value | 99.211% |
Debt (Outstanding Debt Includin
Debt (Outstanding Debt Including Capital Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Weighted average coupon interest rate | 3.39% | |
Debt instrument, discount | $ (11,882) | $ (12,194) |
Total outstanding debt, net | 965,826 | 861,569 |
Capital lease and lease financing obligations | 38,708 | 49,761 |
Total debt and lease obligations | $ 977,708 | 873,763 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average coupon interest rate | 2.22% | |
Maturity date | Dec. 17, 2020 | |
Outstanding debt | $ 139,000 | 224,002 |
Term Loan I [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average coupon interest rate | 2.19% | |
Maturity date | Dec. 17, 2021 | |
Outstanding debt | $ 300,000 | 150,000 |
Term Loan II [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average coupon interest rate | 2.25% | |
Maturity date | Apr. 27, 2022 | |
Outstanding debt | $ 200,000 | 150,000 |
Unsecured Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding debt | $ 639,000 | |
Unsecured Credit Facility [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Dec. 17, 2019 | |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average coupon interest rate | 5.88% | |
Maturity date | Aug. 1, 2022 | |
Outstanding debt | $ 300,000 | 300,000 |
Capital Lease and Lease Financing Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average coupon interest rate | 3.52% | |
Maturity date description | 2017 - 2025 | |
Capital lease and lease financing obligations | $ 38,708 | $ 49,761 |
Debt (Annual Remaining Principa
Debt (Annual Remaining Principal Payment) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Debt [Abstract] | |
2,016 | |
2,017 | |
2,018 | |
2,019 | 139,000 |
2,020 | 300,000 |
Thereafter | 500,000 |
Total | $ 939,000 |
Debt (Lease Narrative) (Details
Debt (Lease Narrative) (Details) $ in Thousands | 12 Months Ended | 46 Months Ended | ||
Dec. 31, 2016USD ($)agreement | Dec. 31, 2015USD ($) | Dec. 31, 2016USD ($)agreement | Jun. 30, 2016USD ($) | |
Capital Leased Assets [Line Items] | ||||
Capital lease and lease financing obligations | $ 38,708 | $ 49,761 | $ 38,708 | |
Capital lease and lease financing obligations | 43,832 | |||
Capital lease and lease financing obligations assumed | 43,832 | |||
Lease financing obligations | 20,600 | $ 22,800 | 20,600 | |
Building and Equipment [Member] | ||||
Capital Leased Assets [Line Items] | ||||
Lease financing obligations | 17,500 | 17,500 | ||
Carpathia Hosting, Inc. | ||||
Capital Leased Assets [Line Items] | ||||
Capital lease and lease financing obligations | 18,100 | $ 18,100 | ||
Capital lease and lease financing obligations | $ 43,832 | |||
Capital lease and lease financing obligations assumed | $ 11,200 | |||
Number of lease agreements | agreement | 2 | 2 | ||
Lease financing obligations | $ 20,600 | $ 20,600 | ||
Oustanding financing agreement | 1,600 | 1,600 | ||
Deferred gain of lease financing obligations | 1,500 | |||
Lease financing monthly principal and interest payment | 200 | |||
Carpathia Hosting, Inc. | Sale-Leaseback Transaction [Member] | ||||
Capital Leased Assets [Line Items] | ||||
Lease financing obligations | 19,000 | 19,000 | ||
Carpathia Hosting, Inc. | Tenant Improvement Allowance [Member] | ||||
Capital Leased Assets [Line Items] | ||||
Lease financing obligations | $ 4,800 | $ 4,800 | ||
Lease financing expiration date | Feb. 28, 2019 | |||
Minimum [Member] | Carpathia Hosting, Inc. | ||||
Capital Leased Assets [Line Items] | ||||
Lease expiration year | 2,018 | |||
Monthly lease payment | $ 200 | |||
Maximum [Member] | Carpathia Hosting, Inc. | ||||
Capital Leased Assets [Line Items] | ||||
Lease expiration year | 2,019 | |||
Monthly lease payment | $ 500 | |||
Maximum [Member] | Carpathia Hosting, Inc. | 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, 2016USD ($) |
Debt [Abstract] | |
2,017 | $ 12,944 |
2,018 | 9,370 |
2,019 | 2,844 |
2,020 | 2,190 |
2,021 | 2,388 |
Thereafter | 8,972 |
Total lease obligations | $ 38,708 |
Partners' Capital, Equity and54
Partners' Capital, Equity and Incentive Compensation Plans (Narrative) (Details) | Feb. 27, 2017$ / shares | Feb. 17, 2017 | Jan. 05, 2017$ / shares | Apr. 01, 2016$ / sharesshares | Mar. 31, 2016USD ($)shares | Dec. 31, 2016USD ($)item$ / sharesshares | Sep. 30, 2016$ / shares | Jun. 30, 2016$ / shares | Mar. 31, 2016$ / shares | Dec. 31, 2015$ / shares | Sep. 30, 2015$ / shares | Jun. 30, 2015$ / shares | Mar. 31, 2015$ / shares | Dec. 31, 2016USD ($)item$ / sharesshares | Dec. 31, 2015$ / shares | Jun. 17, 2015shares | May 31, 2015shares |
Partners Capital And Distributions [Line Items] | |||||||||||||||||
Number of votes per share | item | 50 | 50 | |||||||||||||||
Equity based compensation expense unrecognized | $ | $ 16,200,000 | $ 16,200,000 | |||||||||||||||
Equity based compensation expense vesting period | 4 years | ||||||||||||||||
Equity based compensation awards intrinsic value | $ | $ 66,900,000 | $ 66,900,000 | |||||||||||||||
Dividend paid to common stockholders | $ / shares | $ 0.36 | $ 0.36 | $ 0.36 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.29 | $ 1.40 | $ 1.25 | |||||||
Dividends payable, date payable | Jul. 6, 2016 | Apr. 5, 2016 | Jan. 6, 2016 | Oct. 6, 2015 | Jul. 8, 2015 | Apr. 7, 2015 | Jan. 7, 2015 | Oct. 5, 2016 | |||||||||
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 | 250,000 | ||||||||||||||
Subsequent Event [Member] | |||||||||||||||||
Partners Capital And Distributions [Line Items] | |||||||||||||||||
Dividend paid to common stockholders | $ / shares | $ 0.36 | ||||||||||||||||
Dividends payable, date payable | Apr. 5, 2017 | Jan. 5, 2017 | |||||||||||||||
Dividends payable, date declared | Feb. 17, 2017 | ||||||||||||||||
Cash dividend payable per common share | $ / shares | $ 0.39 | ||||||||||||||||
Class O Units [Member] | |||||||||||||||||
Partners Capital And Distributions [Line Items] | |||||||||||||||||
Nonvested awards outstanding | 100,000 | 100,000 | |||||||||||||||
Common Class A [Member] | |||||||||||||||||
Partners Capital And Distributions [Line Items] | |||||||||||||||||
Shares issued | 6,325,000 | ||||||||||||||||
Shares issued, price per share | $ / shares | $ 45.50 | ||||||||||||||||
Net proceeds from issuance of shares | $ | $ 276,000,000 | ||||||||||||||||
Common Class A [Member] | Underwriters [Member] | |||||||||||||||||
Partners Capital And Distributions [Line Items] | |||||||||||||||||
Shares issued | 825,000 | ||||||||||||||||
Chief Executive Officer [Member] | |||||||||||||||||
Partners Capital And Distributions [Line Items] | |||||||||||||||||
Percentage of operating partnership unit exchanged | 2.00% | ||||||||||||||||
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 | |||||||||||||||
Options to purchase Class A common stock [Member] | |||||||||||||||||
Partners Capital And Distributions [Line Items] | |||||||||||||||||
Nonvested awards outstanding | 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 | 4,750,000 |
Partners' Capital, Equity and55
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
2013 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning balance, Weighted average exercise price units | $ 33.82 | $ 29.13 | $ 21 |
Weighted average exercise price units, Granted | 45.53 | 36.71 | 32.66 |
Weighted average exercise price units, Exercised | 33.26 | 28.37 | 21 |
Weighted average exercise price units, Cancelled/Expired | 33.92 | 28.33 | 21 |
Ending balance, Weighted average exercise price units | 40.67 | 33.82 | 29.13 |
Beginning balance, Weighted average fair value | 5.56 | 4.10 | 3.50 |
Weighted average fair value, Granted | 9.91 | 8.03 | 4.96 |
Weighted average fair value, Exercised | 4.96 | 3.63 | 3.52 |
Weighted average fair value, Cancelled/Expired | 6.95 | 3.52 | 3.52 |
Ending balance, Weighted average fair value | 6.51 | 5.56 | 4.10 |
Beginning balance, Weighted average exercise price options outstanding | 27.80 | 22.87 | 21 |
Weighted average exercise price options outstanding, Granted | 45.78 | 36.16 | 25.59 |
Weighted average exercise price options outstanding, Exercised | 25.70 | 21.30 | 21 |
Weighted average exercise price options outstanding, Cancelled/Expired | 32.14 | 21 | 21 |
Ending balance, Weighted average exercise price options outstanding | $ 31.72 | $ 27.80 | $ 22.87 |
2013 Equity Incentive Plan [Member] | Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning balance, Options Outstanding (in shares) | 867,882 | 584,949 | 367,910 |
Options, Granted (in shares) | 229,693 | 317,497 | 238,039 |
Options, Exercised (in shares) | (29,543) | (23,157) | (3,000) |
Options, Cancelled/Expired (in shares) | (9,735) | (11,407) | (18,000) |
Ending balance, Options Outstanding (in shares) | 1,058,297 | 867,882 | 584,949 |
2013 Equity Incentive Plan [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning balance, Number of units (in shares) | 394,908 | 246,785 | 108,629 |
Number of units, Granted (in shares) | 237,563 | 230,271 | 172,102 |
Number of units, Exercised | (122,136) | (54,400) | (25,786) |
Number of units, Cancelled/Expired (in shares) | (95,644) | (27,748) | (8,160) |
Ending balance, Number of units (in shares) | 414,691 | 394,908 | 246,785 |
2010 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning balance, Weighted average fair value | $ 3.68 | $ 3.75 | $ 3.84 |
Weighted average fair value, Exercised | 4.18 | 4.18 | 4.75 |
Weighted average fair value, Cancelled/Expired | 3.92 | 5.23 | |
Ending balance, Weighted average fair value | $ 3.62 | $ 3.68 | $ 3.75 |
Class O Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Ending balance, Number of units (in shares) | 100,000 | ||
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 (in shares) | 1,292,899 | 1,518,717 | 1,622,747 |
Number of units, Exercised | (158,088) | (222,499) | (15,750) |
Number of units, Cancelled/Expired (in shares) | (3,319) | (88,280) | |
Ending balance, Number of units (in shares) | 1,134,811 | 1,292,899 | 1,518,717 |
Beginning balance, Weighted average exercise price units | $ 23.76 | $ 23.49 | $ 23.44 |
Weighted average exercise price units, Exercised | 21.56 | 22.02 | 20.71 |
Weighted average exercise price units, Cancelled/Expired | 20 | 23.01 | |
Ending balance, Weighted average exercise price units | $ 24.06 | $ 23.76 | $ 23.49 |
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 (in shares) | 39,875 | 74,625 | 173,750 |
Number of units, Released from restriction (in shares) | (39,875) | (34,750) | (99,125) |
Ending balance, Number of units (in shares) | 39,875 | 74,625 | |
Beginning balance, Weighted average exercise price units | $ 22.18 | $ 23.49 | $ 24.31 |
Weighted average exercise price units, Released from restriction | $ 22.18 | 25 | 24.94 |
Ending balance, Weighted average exercise price units | $ 22.18 | $ 23.49 |
Partners' Capital, Equity and56
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 33.00% | ||
Expected dividend yield | 3.57% | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock granted | $ 45.78 | $ 35.81 | |
Fair value of options granted | $ 9.57 | $ 8 | $ 4.94 |
Expected term (years) | 5 years 6 months | 5 years 6 months | 5 years 6 months |
Expected volatility | 30.70% | 33.00% | |
Expected dividend yield | 3.14% | 3.40% | 4.02% |
Expected risk-free interest rates | 1.42% | 1.67% | 1.70% |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock granted | $ 56.28 | $ 37.69 | |
Fair value of options granted | $ 9.97 | $ 8.77 | $ 5.98 |
Expected term (years) | 5 years 10 months 24 days | 6 years 1 month 6 days | 6 years 1 month 6 days |
Expected volatility | 31.30% | ||
Expected dividend yield | 4.55% | ||
Expected risk-free interest rates | 1.48% | 1.94% | 1.90% |
Partners' Capital, Equity and57
Partners' Capital, Equity and Incentive Compensation Plans (Summary of Information About Awards Outstanding) (Details) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Operating Partnership [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards Outstanding | 1,134,811 |
QTS Realty Trust, Inc Awards Outstanding [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards Outstanding | 1,472,988 |
QTS Realty Trust, Inc Awards Outstanding [Member] | Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards Outstanding | 414,691 |
Remaining term of awards | 1 year 7 months 6 days |
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 | $ (45.78) |
Awards Outstanding | 1,058,297 |
Remaining term of awards | 10 months 24 days |
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 | 1,134,811 |
Partners' Capital, Equity and58
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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Partners' Capital, Equity and Incentive Compensation Plans [Abstract] | ||||||||||
Record Date | Jun. 17, 2016 | Mar. 18, 2016 | Dec. 17, 2015 | Sep. 18, 2015 | Jun. 19, 2015 | Mar. 20, 2015 | Dec. 19, 2014 | Sep. 20, 2016 | ||
Payment Date | Jul. 6, 2016 | Apr. 5, 2016 | Jan. 6, 2016 | Oct. 6, 2015 | Jul. 8, 2015 | Apr. 7, 2015 | Jan. 7, 2015 | Oct. 5, 2016 | ||
Per Common Share and Per Unit Rate | $ 0.36 | $ 0.36 | $ 0.36 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.29 | $ 1.40 | $ 1.25 |
Dividend/Distribution Amount | $ 19.7 | $ 19.7 | $ 17.4 | $ 15.4 | $ 15.3 | $ 15.3 | $ 13.4 | $ 10.7 | $ 72.2 | $ 54.7 |
Related Party Transactions (Sum
Related Party Transactions (Summary of Related Party Transactions) (Details) - Affiliated Entity [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Tax, utility, insurance and other reimbursement | $ 878 | $ 589 | $ 692 |
Rent expense | 1,014 | 1,014 | 1,026 |
Capital assets acquired | 323 | 261 | 266 |
Total | $ 2,215 | $ 1,864 | $ 1,984 |
Employee Benefit Plan (Narrativ
Employee Benefit Plan (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage contribution from employees | 4.00% | ||
Employer Contribution on employee benefit plan | $ 2.5 | $ 1.3 | $ 0.6 |
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% | ||
Percentage contribution from employees | 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% | ||
First 1% Percent of Contributions [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contribution rate as a percentage of employee contribution | 100.00% | ||
Percentage contribution from employees | 1.00% | ||
Next 5 % Percent 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 | 5.00% |
Noncontrolling Interest (Narrat
Noncontrolling Interest (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2016securityshares | Dec. 31, 2015 | Oct. 31, 2013 | |
Redeemable units conversion ratio | security | 1 | ||
Units redeemed for common stock | shares | 120,000 | ||
Qualitytech, LP [Member] | |||
Quality Tech LP ownership percentage in operating partnership | 12.40% | 14.20% | 21.20% |
Earnings per Share (Narrative)
Earnings per Share (Narrative) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings per Share [Abstract] | |||
Antidilutive shares excluded from the computation of diluted net earning per share | $ 0 | $ 0 | $ 0 |
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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings per Share [Abstract] | |||||||||||
Net income available to common stockholders - basic | $ 4,806 | $ 5,730 | $ 5,100 | $ 5,889 | $ 4,603 | $ 7,009 | $ 4,632 | $ 4,082 | $ 21,525 | $ 20,326 | $ 15,072 |
Effect of net income attributable to noncontrolling interests | 3,160 | 3,803 | 4,031 | ||||||||
Net income available to common stockholders - diluted | $ 24,685 | $ 24,129 | $ 19,103 | ||||||||
Weighted average shares outstanding-basic | 46,205,937 | 37,568,109 | 29,054,576 | ||||||||
Effect of Class A and Class RS partnership units | 6,783,000 | 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 | 973,000 | 756,000 | 309,000 | ||||||||
Weighted average shares outstanding-diluted | 53,962,234 | 45,353,170 | 37,133,584 | ||||||||
Net income per share attributable to common stockholders - basic | $ 0.10 | $ 0.12 | $ 0.11 | $ 0.14 | $ 0.11 | $ 0.17 | $ 0.13 | $ 0.13 | $ 0.47 | $ 0.54 | $ 0.52 |
Net income per share attributable to common stockholders - diluted | $ 0.10 | $ 0.12 | $ 0.10 | $ 0.14 | $ 0.11 | $ 0.17 | $ 0.12 | $ 0.13 | $ 0.46 | $ 0.53 | $ 0.51 |
Operating Leases, as Lessee (Na
Operating Leases, as Lessee (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Leased Assets [Line Items] | |||
Rent expense under operating leases | $ 20.1 | $ 14.6 | $ 5.9 |
Capitalized rent | $ 0.1 | ||
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, 2016USD ($) |
Leases [Abstract] | |
2,017 | $ 16,344 |
2,018 | 12,004 |
2,019 | 10,108 |
2,020 | 9,708 |
2,021 | 9,919 |
Thereafter | 73,467 |
Total | $ 131,550 |
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, 2016USD ($) |
Leases [Abstract] | |
2,017 | $ 311,946 |
2,018 | 229,567 |
2,019 | 149,144 |
2,020 | 102,917 |
2,021 | 85,467 |
Thereafter | 117,216 |
Total | $ 996,257 |
Fair Value of Financial Instr67
Fair Value of Financial Instruments (Narrative) (Details) $ in Millions | Dec. 31, 2016USD ($) |
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 | $ 304.9 |
Quarterly Financial Informati68
Quarterly Financial Information (Summary of Selected Quarterly Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Effect of Fourth Quarter Events [Line Items] | |||||||||||
Revenues | $ 105,443 | $ 103,465 | $ 98,687 | $ 94,768 | $ 92,690 | $ 88,890 | $ 68,117 | $ 61,386 | $ 402,363 | $ 311,083 | $ 217,789 |
Operating income | 11,092 | 8,505 | 8,225 | 10,235 | 7,243 | 11,095 | 7,266 | 10,379 | 38,057 | 35,983 | 35,274 |
Net income | 5,481 | 6,538 | 5,807 | 6,859 | 5,334 | 8,238 | 5,520 | 5,037 | 24,685 | 24,129 | 19,103 |
Net income available to common stockholders - basic | $ 4,806 | $ 5,730 | $ 5,100 | $ 5,889 | $ 4,603 | $ 7,009 | $ 4,632 | $ 4,082 | $ 21,525 | $ 20,326 | $ 15,072 |
Basic (in dollars per share) | $ 0.10 | $ 0.12 | $ 0.11 | $ 0.14 | $ 0.11 | $ 0.17 | $ 0.13 | $ 0.13 | $ 0.47 | $ 0.54 | $ 0.52 |
Diluted (in dollars per share) | $ 0.10 | $ 0.12 | $ 0.10 | $ 0.14 | $ 0.11 | $ 0.17 | $ 0.12 | $ 0.13 | $ 0.46 | $ 0.53 | $ 0.51 |
Qualitytech, LP [Member] | |||||||||||
Effect of Fourth Quarter Events [Line Items] | |||||||||||
Revenues | $ 105,443 | $ 103,465 | $ 98,687 | $ 94,768 | $ 92,690 | $ 88,890 | $ 68,117 | $ 61,386 | $ 402,363 | $ 311,083 | $ 217,789 |
Operating income | 11,092 | 8,505 | 8,225 | 10,235 | 7,243 | 11,095 | 7,266 | 10,379 | 38,057 | 35,983 | 35,274 |
Net income | $ 5,481 | $ 6,538 | $ 5,807 | $ 6,859 | $ 5,334 | $ 8,238 | $ 5,520 | $ 5,037 | $ 24,685 | $ 24,129 | $ 19,103 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - $ / shares | Feb. 27, 2017 | Feb. 17, 2017 | Jan. 05, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Subsequent Event [Line Items] | |||||||||||||
Dividend paid to common stockholders | $ 0.36 | $ 0.36 | $ 0.36 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.29 | $ 1.40 | $ 1.25 | |||
Dividends payable, date of record | Jun. 17, 2016 | Mar. 18, 2016 | Dec. 17, 2015 | Sep. 18, 2015 | Jun. 19, 2015 | Mar. 20, 2015 | Dec. 19, 2014 | Sep. 20, 2016 | |||||
Dividends payable, date payable | Jul. 6, 2016 | Apr. 5, 2016 | Jan. 6, 2016 | Oct. 6, 2015 | Jul. 8, 2015 | Apr. 7, 2015 | Jan. 7, 2015 | Oct. 5, 2016 | |||||
Subsequent Event [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Dividend paid to common stockholders | $ 0.36 | ||||||||||||
Cash dividend payable per common share | $ 0.39 | ||||||||||||
Dividends payable, date declared | Feb. 17, 2017 | ||||||||||||
Dividends payable, date of record | Mar. 16, 2017 | Dec. 16, 2016 | |||||||||||
Dividends payable, date payable | Apr. 5, 2017 | Jan. 5, 2017 |
Schedule II - Valuation and Q70
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Doubtful Accounts [Member] | |||
Balance at beginning of period | $ 5,063 | $ 3,748 | $ 945 |
Charge to expenses | 1,752 | 1,323 | 600 |
Additions/(deductions) | (2,598) | (8) | 2,203 |
Balance at end of period | $ 4,217 | 5,063 | 3,748 |
Valuation Allowance for Deferred Tax Assets [Member] | |||
Balance at beginning of period | 3,395 | 1,365 | |
Additions/(deductions) | $ (3,395) | 2,030 | |
Balance at end of period | $ 3,395 |
Schedule III - Real Estate In71
Schedule III - Real Estate Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial costs of land | $ 51,031 | |||
Initial costs of buildings and improvements | 356,833 | |||
Initial costs of construction in progress | 92,775 | |||
Costs capitalized subsequent to acquisition, Land | 23,099 | |||
Costs capitalized subsequent to acquisition, Buildings and improvements | 1,167,933 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 273,185 | |||
Gross carrying amount, Land | 74,130 | |||
Gross carrying amount, Buildings and improvements | 1,524,767 | |||
Gross carrying amount, Construction in progress | 365,960 | |||
Accumulated depreciation and amortization | (317,834) | $ (239,936) | $ (180,167) | $ (137,725) |
Owned Properties [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial costs of land | 49,901 | |||
Initial costs of buildings and improvements | 275,951 | |||
Initial costs of construction in progress | 80,648 | |||
Costs capitalized subsequent to acquisition, Land | 23,099 | |||
Costs capitalized subsequent to acquisition, Buildings and improvements | 1,131,563 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 274,781 | |||
Gross carrying amount, Land | 73,000 | |||
Gross carrying amount, Buildings and improvements | 1,407,515 | |||
Gross carrying amount, Construction in progress | 355,429 | |||
Accumulated depreciation and amortization | (280,294) | |||
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 | 141,574 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 2,013 | |||
Gross carrying amount, Land | 3,521 | |||
Gross carrying amount, Buildings and improvements | 171,376 | |||
Gross carrying amount, Construction in progress | 2,013 | |||
Accumulated depreciation and amortization | $ (59,326) | |||
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 | 399,492 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 32,422 | |||
Gross carrying amount, Land | 15,397 | |||
Gross carrying amount, Buildings and improvements | 434,965 | |||
Gross carrying amount, Construction in progress | 32,422 | |||
Accumulated depreciation and amortization | $ (118,470) | |||
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 | 82,870 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 7,078 | |||
Gross carrying amount, Buildings and improvements | 98,708 | |||
Gross carrying amount, Construction in progress | 7,078 | |||
Accumulated depreciation and amortization | $ (33,701) | |||
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 | 226,147 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 70,580 | |||
Gross carrying amount, Land | 2,180 | |||
Gross carrying amount, Buildings and improvements | 237,347 | |||
Gross carrying amount, Construction in progress | 70,580 | |||
Accumulated depreciation and amortization | $ (36,376) | |||
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 | 9,349 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 390 | |||
Gross carrying amount, Land | 1,481 | |||
Gross carrying amount, Buildings and improvements | 62,102 | |||
Gross carrying amount, Construction in progress | 390 | |||
Accumulated depreciation and amortization | $ (7,079) | |||
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, Land | 0 | |||
Costs capitalized subsequent to acquisition, Buildings and improvements | 662 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 538 | |||
Gross carrying amount, Land | 20,700 | |||
Gross carrying amount, Buildings and improvements | 32,788 | |||
Gross carrying amount, Construction in progress | 538 | |||
Accumulated depreciation and amortization | $ (2,169) | |||
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 | 8,606 | |||
Costs capitalized subsequent to acquisition, Buildings and improvements | 198,905 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 69,653 | |||
Gross carrying amount, Land | 8,606 | |||
Gross carrying amount, Buildings and improvements | 204,713 | |||
Gross carrying amount, Construction in progress | 69,653 | |||
Accumulated depreciation and amortization | $ (11,465) | |||
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 construction in progress | $ 17,764 | |||
Costs capitalized subsequent to acquisition, Land | 9,400 | |||
Costs capitalized subsequent to acquisition, Buildings and improvements | 45,848 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 82,859 | |||
Gross carrying amount, Land | 9,400 | |||
Gross carrying amount, Buildings and improvements | 45,848 | |||
Gross carrying amount, Construction in progress | 100,623 | |||
Accumulated depreciation and amortization | $ (853) | |||
Date of acquisition | Jul. 8, 2014 | |||
Owned Properties [Member] | Piscataway New Jersey [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial costs of land | $ 7,466 | |||
Initial costs of buildings and improvements | 80,366 | |||
Initial costs of construction in progress | 13,900 | |||
Costs capitalized subsequent to acquisition, Land | 0 | |||
Costs capitalized subsequent to acquisition, Buildings and improvements | 1,844 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 3,361 | |||
Gross carrying amount, Land | 7,466 | |||
Gross carrying amount, Buildings and improvements | 82,210 | |||
Gross carrying amount, Construction in progress | 17,261 | |||
Accumulated depreciation and amortization | $ (1,240) | |||
Date of acquisition | Jun. 6, 2016 | |||
Owned Properties [Member] | Fort Worth, Texas [Member] | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial costs of land | $ 136 | |||
Initial costs of buildings and improvements | 610 | |||
Initial costs of construction in progress | 48,984 | |||
Costs capitalized subsequent to acquisition, Land | 0 | |||
Costs capitalized subsequent to acquisition, Buildings and improvements | 0 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 132 | |||
Gross carrying amount, Land | 136 | |||
Gross carrying amount, Buildings and improvements | 610 | |||
Gross carrying amount, Construction in progress | 49,116 | |||
Accumulated depreciation and amortization | $ (8) | |||
Date of acquisition | Dec. 16, 2016 | |||
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 | 24,215 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 83 | |||
Gross carrying amount, Land | 1,777 | |||
Gross carrying amount, Buildings and improvements | 31,170 | |||
Gross carrying amount, Construction in progress | 83 | |||
Accumulated depreciation and amortization | $ (9,390) | |||
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 | 660 | |||
Gross carrying amount, Land | 437 | |||
Gross carrying amount, Buildings and improvements | 3,760 | |||
Accumulated depreciation and amortization | $ (214) | |||
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 | |||
Costs capitalized subsequent to acquisition, Buildings and improvements | (2) | |||
Costs capitalized subsequent to acquisition, Construction in progress | 5,672 | |||
Gross carrying amount, Land | 1,899 | |||
Gross carrying amount, Buildings and improvements | 1,918 | |||
Gross carrying amount, Construction in progress | 5,672 | |||
Accumulated depreciation and amortization | $ (3) | |||
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 construction in progress | 12,127 | |||
Costs capitalized subsequent to acquisition, Buildings and improvements | 36,369 | |||
Costs capitalized subsequent to acquisition, Construction in progress | (1,596) | |||
Gross carrying amount, Land | 1,130 | |||
Gross carrying amount, Buildings and improvements | 117,252 | |||
Gross carrying amount, Construction in progress | 10,531 | |||
Accumulated depreciation and amortization | (37,540) | |||
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 construction in progress | 12,127 | |||
Costs capitalized subsequent to acquisition, Buildings and improvements | 13,670 | |||
Costs capitalized subsequent to acquisition, Construction in progress | (4,456) | |||
Gross carrying amount, Land | 1,130 | |||
Gross carrying amount, Buildings and improvements | 92,567 | |||
Gross carrying amount, Construction in progress | 7,671 | |||
Accumulated depreciation and amortization | $ (26,956) | |||
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 | 21,738 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 2,332 | |||
Gross carrying amount, Buildings and improvements | 23,723 | |||
Gross carrying amount, Construction in progress | 2,332 | |||
Accumulated depreciation and amortization | $ (9,896) | |||
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 | $ 962 | |||
Costs capitalized subsequent to acquisition, Construction in progress | 528 | |||
Gross carrying amount, Buildings and improvements | 962 | |||
Gross carrying amount, Construction in progress | 528 | |||
Accumulated depreciation and amortization | $ (687) |
Schedule III - Real Estate In72
Schedule III - Real Estate Investments - Amount that Tax Basis of Net Real Estate Assets Less Than the Reported Amounts (Details) $ in Millions | Dec. 31, 2016USD ($) |
Schedule III - Real Estate Investments [Abstract] | |
Tax Basis of Investments, Cost for Income Tax Purposes | $ 1,990 |
Schedule III - Real Estate In73
Schedule III - Real Estate Investments (Summary of Historical Cost and Accumulated Depreciation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property | |||
Balance, beginning of period | $ 1,583,153 | $ 1,177,582 | $ 905,735 |
Disposals | (8,946) | (5,617) | (54) |
Additions (acquisitions and improvements) | 390,650 | 411,188 | 271,901 |
Balance, end of period | 1,964,857 | 1,583,153 | 1,177,582 |
Accumulated depreciation | |||
Balance, beginning of period | (239,936) | (180,167) | (137,725) |
Disposals | 6,761 | 1,377 | 39 |
Additions (depreciation and amortization expense) | (84,659) | (61,146) | (42,481) |
Balance, end of period | $ (317,834) | $ (239,936) | $ (180,167) |