Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | ||
Sep. 30, 2013 | Nov. 20, 2013 | Nov. 20, 2013 | |
Common Class A [Member] | Common Class B [Member] | ||
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-Q | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
Entity Registrant Name | 'QTS Realty Trust, Inc. | ' | ' |
Entity Central Index Key | '0001577368 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 28,839,774 | 133,000 |
Balance_Sheets
Balance Sheets (USD $) | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
QualityTech, LP [Member] | QualityTech, LP [Member] | ||
Real Estate Assets | ' | ' | ' |
Land | ' | $30,518,000 | $24,713,000 |
Buildings and improvements | ' | 711,238,000 | 622,506,000 |
Less: Accumulated depreciation | ' | -128,703,000 | -102,900,000 |
Total real estate assets | ' | 613,053,000 | 544,319,000 |
Construction in Progress | ' | 106,630,000 | 87,609,000 |
Real estate assets, net | ' | 719,683,000 | 631,928,000 |
Cash and cash equivalents | 1,000 | 6,504,000 | 8,232,000 |
Restricted cash | ' | ' | 146,000 |
Deferred offering costs | 2,223,000 | ' | ' |
Rents and other receivables, net | ' | 12,530,000 | 11,943,000 |
Acquired intangibles, net | ' | 6,850,000 | 9,145,000 |
Deferred costs, net | ' | 19,190,000 | 15,062,000 |
Prepaid expenses | ' | 2,521,000 | 1,011,000 |
Other assets, net | ' | 14,669,000 | 7,976,000 |
TOTAL ASSETS | 2,224,000 | 781,947,000 | 685,443,000 |
LIABILITIES | ' | ' | ' |
Mortgage notes payable | ' | 89,376,000 | 171,291,000 |
Unsecured credit facility | ' | 520,000,000 | ' |
Secured credit facility | ' | ' | 316,500,000 |
Capital lease obligations | ' | 1,995,000 | 2,491,000 |
Accounts payable and accrued liabilities | ' | 34,294,000 | 36,001,000 |
Advance rents, security deposits and other liabilities | ' | 3,255,000 | 3,011,000 |
Deferred income | ' | 7,561,000 | 6,745,000 |
Derivative liability | ' | 547,000 | 767,000 |
Member advances and notes payable | ' | ' | 26,958,000 |
TOTAL LIABILITIES | 2,223,000 | 657,028,000 | 563,764,000 |
LIABILITIES AND STOCKHOLDER'S EQUITY | ' | ' | ' |
Due to affiliates | 2,223,000 | ' | ' |
TOTAL LIABILITIES | 2,223,000 | 657,028,000 | 563,764,000 |
STOCKHOLDER'S EQUITY | ' | ' | ' |
Common stock, $0.01 par value, 100000 shares authorized, 1,000 shares issued and outstanding | 1,000 | ' | ' |
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | 2,224,000 | 781,947,000 | 685,443,000 |
PARTNERS' CAPITAL | ' | ' | ' |
Partners' capital | 124,919,000 | 124,919,000 | 121,679,000 |
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $2,224,000 | $781,947,000 | $685,443,000 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 |
Statement Of Financial Position [Abstract] | ' |
Common stock, par value | $0.01 |
Common stock, shares authorized | 100,000 |
Common stock, shares issued | 1,000 |
Common stock, shares outstanding | 1,000 |
Statements_of_Operations_and_C
Statements of Operations and Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Other income and expense: | ' | ' | ' | ' |
Net income (loss) | ' | ' | ($597) | ' |
QualityTech, LP [Member] | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Rental | 37,595 | 30,037 | 106,184 | 89,553 |
Recoveries from customers | 3,603 | 2,296 | 9,925 | 6,785 |
Cloud and managed services | 4,393 | 3,842 | 12,828 | 10,725 |
Other | 429 | 79 | 1,521 | 523 |
Total revenues | 46,020 | 36,254 | 130,458 | 107,586 |
Operating expenses: | ' | ' | ' | ' |
Property operating costs | 15,638 | 13,082 | 44,930 | 38,638 |
Real estate taxes and insurance | 1,101 | 1,261 | 3,304 | 2,786 |
Depreciation and amortization | 12,136 | 8,902 | 34,197 | 25,296 |
General and administrative | 10,097 | 8,672 | 29,387 | 25,859 |
Transaction costs | ' | 404 | ' | 404 |
Restructuring charge | ' | ' | ' | 3,291 |
Total operating expenses | 38,972 | 32,321 | 111,818 | 96,274 |
Operating income | 7,048 | 3,933 | 18,640 | 11,312 |
Other income and expense: | ' | ' | ' | ' |
Interest income | 4 | 8 | 17 | 54 |
Interest expense | -4,343 | -6,646 | -15,977 | -19,039 |
Other expense, net | ' | ' | -3,277 | -1,434 |
Income (loss) before gain on sale of real estate | 2,709 | -2,705 | -597 | -9,107 |
Gain on sale of real estate | ' | 948 | ' | 948 |
Net income (loss) | 2,709 | -1,757 | -597 | -8,159 |
Unrealized gain (loss) on swaps | 8 | -406 | 220 | -758 |
Comprehensive income (loss) | $2,717 | ($2,163) | ($377) | ($8,917) |
Statements_of_Changes_in_Partn
Statements of Changes in Partners' Capital (USD $) | Total | Limited Partner [Member] | General Partner [Member] |
In Thousands | USD ($) | USD ($) | |
Beginning balance at Dec. 31, 2012 | $121,679 | $121,679 | ' |
Beginning balance, Partnership Units, shares at Dec. 31, 2012 | ' | 21,974 | 1 |
Equity-based compensation expense, net of equity awards repurchased, Capital Accounts | 1,292 | 1,292 | ' |
Equity-based compensation expense, net of equity awards repurchased, Partnership Units, shares | ' | ' | ' |
Member advances exchanged for LP units, Capital Accounts | 10,000 | 10,000 | ' |
Member advances exchanged for LP units, Partnership Units, shares | ' | 400 | ' |
Partnership distributions | -7,675 | -7,675 | ' |
Net loss | -597 | -597 | ' |
Other comprehensive income | 220 | 220 | ' |
Ending balance at Sep. 30, 2013 | $124,919 | $124,919 | ' |
Ending balance, Partnership Units, shares at Sep. 30, 2013 | ' | 22,374 | 1 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flow from operating activities: | ' | ' |
Net loss | ($597) | ' |
Cash flow from financing activities: | ' | ' |
Partnership distributions | -7,675 | ' |
Cash and cash equivalents, end of period | 1 | ' |
QualityTech, LP [Member] | ' | ' |
Cash flow from operating activities: | ' | ' |
Net loss | -597 | -8,159 |
Adjustments to reconcile net loss to net cash provided by operating activities | ' | ' |
Depreciation and amortization | 32,701 | 24,351 |
Amortization of deferred loan costs | 2,193 | 2,582 |
Equity-based compensation expense | 1,305 | 303 |
Write off of deferred loan costs relating to retired debt | 2,031 | 1,434 |
Restructuring charge | ' | 3,291 |
(Gain) loss on sale/disposal of property | ' | -948 |
Changes in operating assets and liabilities | ' | ' |
Rents and other receivables, net | -587 | 1,179 |
Accrued interest on member advances | ' | 1,726 |
Prepaid expenses | -1,510 | -719 |
Restricted cash | 146 | 1,013 |
Other assets | 291 | 134 |
Accounts payable and accrued liabilities | -4,888 | 1,126 |
Advance rents, security deposits and other liabilities | 244 | -1,447 |
Deferred income | 816 | 1,106 |
Net cash provided by operating activities | 32,145 | 26,972 |
Cash flow from investing activities: | ' | ' |
Proceeds from sale of property | ' | 1,549 |
Acquisition of real estate | -21,174 | ' |
Additions to property and equipment | -102,924 | -86,351 |
Net cash used in investing activities | -124,098 | -84,802 |
Cash flow from financing activities: | ' | ' |
Credit facility proceeds | 563,500 | 375,000 |
Debt repayment | -456,994 | -366,308 |
Payment of swap liability | ' | -4,377 |
Payment of deferred financing costs | -4,483 | -4,591 |
Partnership distributions | -7,633 | ' |
Repurchase of equity awards | -13 | ' |
Principal payments on capital lease obligation | -496 | -237 |
Scheduled mortgage principal debt repayments | -1,880 | -2,390 |
Equity issuance costs | -1,776 | ' |
Equity proceeds, net of costs | ' | 60,000 |
Net cash provided by financing activities | 90,225 | 57,097 |
Net decrease in cash and cash equivalents | -1,728 | -733 |
Cash and cash equivalents, beginning of period | 8,232 | 7,342 |
Cash and cash equivalents, end of period | 6,504 | 6,609 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ' | ' |
Cash paid for interest (excluding deferred financing costs) | 14,265 | 16,617 |
Noncash investing and financing activities: | ' | ' |
Accrued capital additions | 20,939 | 26,456 |
Accrued deferred financing costs | 990 | ' |
Accrued equity issuance costs | 447 | ' |
Member advances exchanged for LP units | $10,000 | ' |
Organization_and_Description_o
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2013 | |
Text Block [Abstract] | ' |
Organization and Description of Business | ' |
1. Organization and Description of Business | |
QTS Realty Trust, Inc. (the “Company”) was formed as a Maryland corporation on May 17, 2013. On October 15, 2013, the Company completed its initial public offering of 14,087,500 shares of Class A common stock, $0.01 par value per share (the “Offering”), including shares issued pursuant to the underwriters’ option to purchase additional shares which was exercised in full, and received net proceeds of approximately $283 million. The Company intends to elect and qualify to be taxed as a real estate investment trust (“REIT”), for U.S. federal income tax purposes, commencing with its taxable year ending December 31, 2013. | |
Prior to the Offering, the Company had no assets other than cash and deferred offering costs, and had not had any operations other than the issuance of 1,000 shares of common stock to Chad L. Williams in connection with its initial capitalization. As of September 30, 2013, the shares of common stock of the Company were issued to Chad L. Williams in consideration for $1,000, which was paid on July 2, 2013. | |
Concurrently with the completion of the Offering, the Company consummated a series of transactions, including the merger of General Atlantic REIT, Inc. with QTS, pursuant to which it became the sole general partner and majority owner of the Quality Tech, LP, a Delaware limited partnership (the “Operating Partnership”). Substantially all of the Company’s assets are held by, and the Company’s operations are conducted through, the Operating Partnership. The Company contributed the net proceeds received from the Offering to the Operating Partnership in exchange for partnership units therein. Following the Offering, the Company owned approximately 78.8% of the interests in the Operating Partnership. The Company’s interest in the Operating Partnership entitles the Company to share in cash distributions from, and in the profits and losses of, the Operating Partnership in proportion to the Company’s percentage ownership. As the sole general partner of the Operating Partnership, the Company generally has the exclusive power under the partnership agreement to manage and conduct its business and affairs, subject to certain limited approval and voting rights of the limited partners. The Company’s board of directors manages its business and affairs. |
Basis_of_Presentation_and_Acco
Basis of Presentation and Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation and Accounting Policies | ' |
2. Basis of Presentation and 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. | |
Use of Estimates—The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statement and accompanying notes. Actual results may differ from these estimates and assumptions. | |
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. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
3. Income Taxes | |
The Company intends to elect to be taxed, and to operate in a manner that will allow it to qualify as, a REIT for U.S. federal income tax purposes commencing with its taxable year ending December 31, 2013. | |
As a REIT, the Company will be permitted to deduct dividends paid to its stockholders, eliminating the federal taxation of income represented by such dividends at the Company level. REITs are subject to a number of organizational and operational requirements. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal income tax (including any applicable alternative minimum tax) on its taxable income at regular corporate rates. | |
Operating as a REIT, the Company will be required to distribute at least 90% of its REIT taxable income to its stockholders on an annualized basis. |
Deferred_Offering_Costs
Deferred Offering Costs | 9 Months Ended |
Sep. 30, 2013 | |
Text Block [Abstract] | ' |
Deferred Offering Costs | ' |
4. Deferred Offering Costs | |
In connection with the Offering, the Company incurred certain legal, accounting and related costs which are reflected as deferred offering costs. |
Description_of_Business
Description of Business (QualityTech, LP [Member]) | 9 Months Ended | |
Sep. 30, 2013 | ||
QualityTech, LP [Member] | ' | |
Description of Business | ' | |
1 | Description of Business | |
QualityTech, LP (the “Operating Partnership” or the “Company”) was formed in October 2009 as a Delaware limited partnership among Chad L. Williams, the Company’s Chairman and Chief Executive Officer, certain other partners and a subsidiary of General Atlantic LLC to own and operate data center properties and the managed service business previously owned by entities controlled by Chad L. Williams. | ||
QualityTech GP, LLC (the “General Partner”) was the Company’s general partner. The General Partner was formed in October 2009 as a Delaware limited liability company and was wholly owned by Chad L. Williams. Certain of the Company’s partners, including the General Partner, are parties to a unit holders’ agreement that provides for certain matters regarding transfer of partnership interests in the Company, the Company’s governance and the Company’s ownership, including requiring specified approvals for certain major decisions. | ||
The Company will continue indefinitely until dissolved as provided in the Partnership Agreement. Each of the subsidiary limited liability companies owned by the Company will continue indefinitely until dissolved as provided by their respective limited liability company agreements. | ||
QTS Realty Trust, Inc. was formed as a Maryland corporation on May 17, 2013. QTS Realty Trust, Inc. (“QTS”) did not have any operating activity until the consummation of its initial public offering on October 15, 2013. Concurrently with the completion of the initial public offering, QTS and the Company 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. Upon completion of the initial public offering and the formation transactions, substantially all of QTS’ assets are held by, and its operations are conducted through, the Company, for which QTS became the general partner and owns approximately 78.8%. | ||
In connection with the public offering, and as of September 30, 2013, Quality Tech, LP has incurred $2.2 million of certain legal, accounting and initial related costs on behalf of QTS Realty Trust, Inc. which are reflected in Other Assets in the Company’s Interim Consolidated Balance Sheets. | ||
QTS Realty Trust, Inc. intends to elect to be taxed, and to operate in a manner that will allow it to qualify as, a real estate investment trust (“REIT”) for U.S. federal income tax purposes commencing with its taxable year ending December 31, 2013. | ||
Summary_of_Significant_Account
Summary of Significant Accounting Policies (QualityTech, LP [Member]) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
QualityTech, LP [Member] | ' | ||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||
2 | Summary of Significant Accounting Policies | ||||||||||||||||
Basis of Presentation – The accompanying unaudited condensed consolidated financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. | |||||||||||||||||
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 and 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, fixed assets, acquired intangible assets and certain accruals. | |||||||||||||||||
Principles of Consolidation – The consolidated condensed financial statements include the accounts of QualityTech, LP and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in the financial statements. | |||||||||||||||||
Real Estate Assets – Real estate assets are reported at cost. All capital improvements for the income-producing properties that extend their useful life are capitalized to individual property improvements and depreciated over their estimated useful lives. Depreciation 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. The aggregate depreciation charged to operations was $9.7 million and $7.6 million for the three months ended September 30, 2013 and 2012, respectively, and $27.2 million and $21.5 million for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||
The Company capitalizes certain development costs, including internal costs, incurred in connection with redevelopment of data center facilities. The capitalization of costs during the construction period (including interest and related loan fees, property taxes and other direct and indirect costs) begins when redevelopment efforts commence and ends when the asset is ready for its intended use. Capitalization of such costs, excluding interest, aggregated to $2.4 million and $1.8 million for the three months ended September 30, 2013 and 2012, respectively, and $6.3 million and $5.3 million for the nine months ended September 30, 2013 and 2012, 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 redevelopment and other costs expended during the construction period. Interest is capitalized until the property is ready for its intended use. Interest costs capitalized totaled $0.9 million and $0.4 million for the three months ended September 30, 2013 and 2012, respectively, and $3.0 million and $1.5 million for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||
Acquisition of Real Estate – Purchase accounting is applied to the assets and liabilities related to all real estate investments acquired in accordance to 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 real estate acquired is allocated to the acquired tangible assets, consisting primarily of land, building and improvements, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, value of in-place leases and value of customer relationships. | |||||||||||||||||
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. | |||||||||||||||||
Intangible assets and liabilities include acquired above-market leases, below-market leases, in-place leases and customer relationships. | |||||||||||||||||
Acquired in-place lease costs 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, including write-offs for terminated leases, totaled $0.5 million and $1.5 million for the three and nine months ended September 30, 2013, respectively, with no material amortization during the three and nine months ended September 30, 2012. | |||||||||||||||||
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, including write-offs for terminated leases, totaled $0.4 million and $0.2 million for the three months ended September 30, 2013 and 2012, respectively, and $1.2 million and $0.6 million for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||
Should a customer terminate its lease, the unamortized portions of the acquired above-market leases, below-market leases, in-place leases and customer relationships associated with that customer are written off to amortization expense or rental revenue, as indicated above. | |||||||||||||||||
Impairment of Long-Lived and Intangible Assets – 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. No impairment losses were recorded during the three and nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||
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. | |||||||||||||||||
Restricted Cash – Restricted cash includes accounts restricted by the Company’s loan agreements and escrow deposits for interest, insurance, taxes and capital improvements held by the various banks and financial institutions as required by the loan agreements. Such deposits are held in bank checking or investment accounts with original maturities of three months or less. | |||||||||||||||||
Deferred Costs – Deferred costs, net, on the Company’s balance sheets include both financing costs and leasing costs. | |||||||||||||||||
Deferred financing costs represent fees and other costs incurred in connection with obtaining debt and are amortized over the term of the loan and are included in interest expense. Amortization of the deferred financing costs was $0.6 million and $0.8 million for the three months ended September 30, 2013 and 2012, respectively, and $2.2 million and $2.6 million for the nine months ended September 30, 2013 and 2012, respectively. During the nine months ended September 30, 2013, the Company wrote off unamortized financing costs of $2.0 million in connection with the expansion of its revolving and term credit facilities. In addition, during the nine months ended September 30, 2013, the Company wrote off unamortized financing costs of $1.3 million in connection with an asset securitization which the Company is no longer pursuing due to the expansion of the credit facility. During the nine months ended September 30, 2012, the Company wrote off unamortized financing costs of $1.4 million, primarily relating to the Suwanee, GA and Richmond, VA loans that were repaid during the quarter. | |||||||||||||||||
Deferred financing costs, net of accumulated amortization, are as follows (dollars in thousands): | |||||||||||||||||
(dollars in thousands) | September 30, | December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||||
(unaudited) | |||||||||||||||||
Deferred financing costs | $ | 9,159 | $ | 10,165 | |||||||||||||
Accumulated amortization | (1,231 | ) | (3,309 | ) | |||||||||||||
Deferred financing costs, net | $ | 7,928 | $ | 6,856 | |||||||||||||
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 $3.2 million and $2.4 million for the nine months ended September 30, 2013 and 2012, respectively. Deferred leasing costs, net of accumulated amortization are as follows: | |||||||||||||||||
(dollars in thousands) | September 30, | December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||||
(unaudited) | |||||||||||||||||
Deferred leasing costs | $ | 17,030 | $ | 12,567 | |||||||||||||
Accumulated amortization | (5,768 | ) | (4,361 | ) | |||||||||||||
Deferred leasing costs, net | $ | 11,262 | $ | 8,206 | |||||||||||||
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 $7.6 million and $6.7 million as of September 30, 2013 and December 31, 2012, respectively. Additionally, $1.3 million and $1.2 million of deferred income was amortized into revenues for the three months ended September 30, 2013 and 2012, respectively, and $3.5 million and $3.0 million for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||
Interest Rate Derivative Instruments – The Company utilizes derivatives to manage its interest rate exposure. The interest rate swaps entered into in September 2006 did not meet the criteria for hedge accounting and accordingly, the Company reported the change in the fair value of the derivative in interest expense in the accompanying Statements of Operations and Comprehensive Loss. | |||||||||||||||||
During February 2012, the Company entered into interest rate swaps with a notional amount of $150 million which are cash flow hedges and qualify for hedge accounting. For these hedges, the effective portion of the change in fair value is recognized through other comprehensive income or loss. Amounts are reclassified out of other comprehensive income (loss) as the hedged item is recognized in earnings, either for ineffectiveness or for amounts paid relating to the hedge. As there was no ineffectiveness recorded in the periods presented, the Company has reflected the change in the fair value of the instrument in other comprehensive income (loss). | |||||||||||||||||
For derivative instruments that are not accounted for using hedge accounting, or for the ineffective portions of qualifying hedges, the change in fair value is recorded through interest expense in the respective period. | |||||||||||||||||
Equity-based Compensation – The Company issued Class RS units of limited partnership interest (“Class RS units”) or Class O units of limited partnership interest (“Class O units” and with the Class RS units, the “LTIP units”) to an affiliated company, QualityTech Employee Pool, LLC (“Employee Pool”), on behalf of employees and non-employee directors who are granted an award under the QualityTech, LP 2010 Equity Incentive Plan. 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 associated with the portion of awards classified as equity are measured based upon their estimated fair value on the date of grant or modification. Equity-based compensation costs associated with the portion of awards classified as liabilities are measured based upon their estimated fair value at the grant date and re-measured as of the end of each period. The Company recorded equity-based compensation expense net of repurchased awards acquired of $0.5 million and $0.1 million for the three months ended September 30, 2013, and 2012, respectively, and $1.3 million and $0.3 million for the nine months ended September 30, 2013 and 2012, respectively. Following the completion of the IPO, the Company may issue Class RS units or Class O units pursuant to the QTS Realty Trust, Inc. 2013 Equity Incentive Plan. | |||||||||||||||||
Rental Revenue – The Company, as a lessor, has retained substantially all 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 $2.8 million and $2.4 million as of September 30, 2013 and December 31, 2012, respectively. Rental revenue also includes amortization of set-up fees which are amortized over the term of the respective lease as discussed above. | |||||||||||||||||
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 $0.4 million and $0.5 million as of September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||
Capital Lease – 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. | |||||||||||||||||
In 2011, the Company entered into capital leases for certain equipment. The outstanding liabilities for the capital leases were $2.0 million and $2.5 million as of September 30, 2013 and December 31, 2012, respectively. Depreciation related to the associated assets is included in depreciation and amortization expense in the Statements of Operations and Comprehensive Loss. | |||||||||||||||||
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 (Loss) 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. | |||||||||||||||||
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. | |||||||||||||||||
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 in the United States. | |||||||||||||||||
Restructuring – In March 2012, the Company decided to consolidate its New York area operations into the New Jersey data center facility. The Company transferred certain customers from the New York City facility to the New Jersey facility. As of September 30, 2012, the Company reserved $3.3 million for the cost of this consolidation. As this consolidation was completed in 2012, there were no restructuring costs incurred during the nine months ended September 30, 2013. | |||||||||||||||||
Customer Concentrations – As of September 30, 2013, two of the Company’s customers represented 7% and 6%, respectively, of its total monthly rental revenue. No other customers exceeded 5% of total monthly rental revenue. | |||||||||||||||||
As of September 30, 2013, five of the Company’s customers exceeded 5% of total accounts receivable. In aggregate, these five customers accounted for 36% of total accounts receivable. None of these five customers exceeded 10% of total accounts receivable. | |||||||||||||||||
Income Taxes – The Company is obligated to comply with Internal Revenue Service real estate investment trust (“IRS REIT”) tax regulations in accordance with the unit holders’ agreement. In order to comply with this obligation, the Company elected for one of its existing subsidiaries to be taxed as a taxable REIT subsidiary under the IRS REIT tax regulations. The taxable REIT subsidiary is allocated income and expense based on IRS REIT tax regulations. | |||||||||||||||||
For the taxable REIT subsidiary, 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. | |||||||||||||||||
The Company’s tax provision has not changed materially subsequent to December 31, 2012. | |||||||||||||||||
Fair Value Measurements – ASC Topic 820 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. | |||||||||||||||||
Financial assets and liabilities measured at fair value in the financial statements on a recurring basis consist of the Company’s derivatives. The fair values of the derivatives are determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. The analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves (“significant other observable inputs”). The fair value calculation also includes an amount for risk of non-performance using “significant unobservable inputs” such as estimates of current credit spreads to evaluate the likelihood of default. The Company has concluded as of September 30, 2013 and December 31, 2012 that the fair value associated to “significant unobservable inputs” for risk of non-performance was insignificant to the overall fair value of the derivative agreements and, as a result, have determined that the relevant inputs for purposes of calculating the fair value of the derivative agreements, in their entirety, were based upon “significant other observable inputs.” The Company determined the fair value of derivatives using level 2 inputs. These methods of assessing fair value result in a general approximation of value, and such value may never be realized. | |||||||||||||||||
The Company’s financial instruments held at fair value are presented below as of September 30, 2013 and December 31, 2012 (dollars in thousands): | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
September 30, 2013 | |||||||||||||||||
Financial Liabilities: | |||||||||||||||||
Interest rate swap liability(1) | $ | 547 | $ | — | $ | 547 | $ | — | |||||||||
December 31, 2012 | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Restricted deposits, held at fair value | $ | 146 | $ | 146 | $ | — | $ | — | |||||||||
Financial Liabilities: | |||||||||||||||||
Interest rate swap liability(1) | $ | 767 | $ | — | $ | 767 | $ | — | |||||||||
-1 | The Company used inputs from quoted prices for similar assets and liabilities in active markets that are directly or indirectly observable relating to the measurement of the interest rate swaps. The fair value measurement of the interest rate swaps have been classified as Level 2. |
Acquisitions_of_Real_Estate
Acquisitions of Real Estate (QualityTech, LP [Member]) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
QualityTech, LP [Member] | ' | ||||||||||||||||
Acquisitions of Real Estate | ' | ||||||||||||||||
3 | Acquisitions of Real Estate | ||||||||||||||||
In February 2013, the Company completed its acquisition of a site in Dallas, Texas. The Company paid cash of $10.25 million for the Dallas facility. In connection with the transaction, the Company obtained $10.25 million of seller-financed debt that was repaid in June 2013 as outlined in Note 5. Additionally, the Company incurred transaction costs of $0.6 million, which were capitalized, providing an aggregate cost of $21.2 million. Upon completion of the redevelopment, the former 700,000 square foot semiconductor plant will be converted into a data center facility on the existing campus. In accordance with ASC 805, the Company accounted for this acquisition as an asset purchase. | |||||||||||||||||
In December 2012, the Company purchased a data center facility located in Sacramento, California for which the Company paid approximately $63.3 million. The preliminary purchase price allocation was based on an assessment of the fair value of the assets acquired. The preliminary purchase price allocation recorded for the year ended December 31, 2012, was adjusted in 2013 when the valuation analysis was finalized. The following table summarizes the consideration for the Sacramento facility and the adjusted preliminary allocation of the fair value of assets acquired as of September 30, 2013 (in thousands): | |||||||||||||||||
Adjusted | Original | Adjustment | Weighted average | ||||||||||||||
Sacramento facility | Sacramento facility as | useful life | |||||||||||||||
as of September 30, 2013 | of December 31, 2012 | ||||||||||||||||
Working capital | $ | — | $ | — | $ | — | |||||||||||
Buildings | 52,439 | 52,753 | (314 | ) | 40 | ||||||||||||
Land | 1,481 | 1,485 | (4 | ) | |||||||||||||
Tenant relationship | 5,366 | 5,029 | 337 | 4 | |||||||||||||
In place leases | 3,964 | 3,202 | 762 | 2 | |||||||||||||
Above (below) market leases | — | 781 | (781 | ) | 1 | ||||||||||||
Total purchase price | $ | 63,250 | $ | 63,250 | $ | — | |||||||||||
Real_Estate_Assets_and_Constru
Real Estate Assets and Construction in Progress (QualityTech, LP [Member]) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
QualityTech, LP [Member] | ' | ||||||||||||||||
Real Estate Assets and Construction in Progress | ' | ||||||||||||||||
4 | Real Estate Assets and Construction in Progress | ||||||||||||||||
The following is a summary of properties owned by the Operating Partnership as of September 30, 2013 and December 31, 2012 (in thousands): | |||||||||||||||||
As of September 30, 2013 (unaudited): | |||||||||||||||||
Property Location | Land | Buildings and | Construction | Total Cost | |||||||||||||
Improvements | in Progress | ||||||||||||||||
Owned Properties | |||||||||||||||||
Suwanee, Georgia (Atlanta-Suwanee) | $ | 3,521 | $ | 118,473 | $ | 6,031 | $ | 128,025 | |||||||||
Atlanta, Georgia (Atlanta-Metro) | 15,314 | 294,124 | 9,076 | 318,514 | |||||||||||||
Santa Clara, California* | — | 85,832 | 822 | 86,654 | |||||||||||||
Richmond, Virginia | 2,180 | 107,548 | 64,343 | 174,071 | |||||||||||||
Sacramento, California | 1,481 | 52,725 | 2,796 | 57,002 | |||||||||||||
Dallas, Texas | 5,808 | — | 20,733 | 26,541 | |||||||||||||
Miami, Florida | 1,777 | 27,499 | — | 29,276 | |||||||||||||
Lenexa, Kansas | 437 | 3,317 | — | 3,754 | |||||||||||||
Wichita, Kansas | — | 1,407 | — | 1,407 | |||||||||||||
30,518 | 690,925 | 103,801 | 825,244 | ||||||||||||||
Leased Properties | |||||||||||||||||
Jersey City, New Jersey | — | 19,574 | 2,829 | 22,403 | |||||||||||||
Overland Park, Kansas | — | 739 | — | 739 | |||||||||||||
— | 20,313 | 2,829 | 23,142 | ||||||||||||||
$ | 30,518 | $ | 711,238 | $ | 106,630 | $ | 848,386 | ||||||||||
* | Owned facility subject to long-term ground sublease. | ||||||||||||||||
As of December 31, 2012: | |||||||||||||||||
Property Location | Land | Buildings and | Construction | Total Cost | |||||||||||||
Improvements | in Progress | ||||||||||||||||
Owned Properties | |||||||||||||||||
Suwanee, Georgia (Atlanta-Suwanee) | $ | 3,521 | $ | 103,438 | $ | 3,572 | $ | 110,531 | |||||||||
Atlanta, Georgia (Atlanta-Metro) | 15,314 | 263,192 | 6,658 | 285,164 | |||||||||||||
Santa Clara, California* | — | 83,536 | 245 | 83,781 | |||||||||||||
Richmond, Virginia | 2,179 | 71,629 | 71,986 | 145,794 | |||||||||||||
Sacramento, California | 1,485 | 52,753 | — | 54,238 | |||||||||||||
Miami, Florida | 1,777 | 27,111 | — | 28,888 | |||||||||||||
Lenexa, Kansas | 437 | 54 | 3,260 | 3,751 | |||||||||||||
Wichita, Kansas | — | 1,408 | — | 1,408 | |||||||||||||
24,713 | 603,121 | 85,721 | 713,555 | ||||||||||||||
Leased Properties | |||||||||||||||||
Jersey City, New Jersey | — | 18,666 | 1,888 | 20,554 | |||||||||||||
Overland Park, Kansas | — | 719 | — | 719 | |||||||||||||
— | 19,385 | 1,888 | 21,273 | ||||||||||||||
$ | 24,713 | $ | 622,506 | $ | 87,609 | $ | 734,828 | ||||||||||
* | Owned facility subject to long-term ground sublease. |
Credit_Facilities_and_Mortgage
Credit Facilities and Mortgages Payable (QualityTech, LP [Member]) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
QualityTech, LP [Member] | ' | ||||||||
Credit Facilities and Mortgages Payable | ' | ||||||||
5 | Credit Facilities and Mortgages Payable | ||||||||
Below is a listing of our outstanding debt as of September 30, 2013 and December 31, 2012 (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(unaudited) | |||||||||
Unsecured Credit Facility | $ | 520,000 | $ | — | |||||
Secured Credit Facility | — | 316,500 | |||||||
Richmond Credit Facility | 70,000 | 70,000 | |||||||
Atlanta-Metro Equipment Loan | 19,376 | 20,931 | |||||||
Miami Loan | — | 26,048 | |||||||
Atlanta-Suwanee Land Loan | — | 1,600 | |||||||
Lenexa Loan | — | 2,712 | |||||||
Santa Clara Bridge Loan | — | 50,000 | |||||||
Total | $ | 609,376 | $ | 487,791 | |||||
(a) Unsecured Credit Facility – On May 1, 2013, the Company entered into an unsecured credit facility agreement with a syndicate of financial institutions in which KeyBank National Association serves as administrative agent (the “Unsecured Credit Facility”). Proceeds from the Unsecured Credit Facility were used to repay the Secured Credit Facility (as defined below). This new unsecured credit facility has a term loan of $225 million, with a term of five years, and a revolving credit facility of $350 million, with a term of four years, for an aggregate borrowing capacity of $575 million. The credit facility also provides for a $100 million accordion feature that could increase the amount of the facility up to $675 million, subject to certain conditions, including the consent of the administrative agent and obtaining necessary commitments. | |||||||||
During the second quarter of 2013, the Company used proceeds from the Unsecured Credit Facility to pay the outstanding balances under the Secured Credit Facility, loans secured by the Miami and Santa Clara data centers, seller financing to acquire the Lenexa and Dallas facilities, a loan agreement for the purchase of land adjacent to the Atlanta-Suwanee facility and a loan from Chad L. Williams and entities controlled by Mr. Williams. | |||||||||
The Unsecured Credit Facility requires monthly interest payments and requires the Company to comply with various quarterly covenant requirements relating to debt service coverage ratio, fixed charge ratio, leverage ratio and tangible net worth and various other operational requirements. In connection with the Unsecured Credit Facility, as of September 30, 2013, the Company had an additional $3.5 million letter of credit outstanding. | |||||||||
(b) Secured Credit Facility – On September 28, 2010, the Company entered into a secured credit facility agreement with KeyBank National Association (the “Secured Credit Facility”) and various other lenders with a total borrowing capacity of $125 million. During 2011, the Company expanded the facility, increasing the borrowing capacity to $170 million. On February 8, 2012, the Company increased the capacity of its credit facility by $270 million and extended the maturity date to September 28, 2014. The amended and extended credit facility, which then totaled $440 million, was secured by the Atlanta-Metro and Atlanta-Suwanee data center facilities. Of the $440 million credit facility, $125 million was a term loan and $315 million was a revolving credit facility. The credit facility also provided a $100 million accordion feature that could increase the amount of the facility up to $540 million. | |||||||||
Concurrently with the closing of the amended and extended credit facility, the Company entered into an interest rate cap agreement with a notional amount of $150 million. This instrument provided a one month LIBOR cap of 2.05% and had an effective date of February 8, 2012 and a termination date of February 8, 2013. The Company also entered into two interest rate swaps with an aggregate $150 million notional amount and an effective date of February 8, 2013 to succeed the interest rate caps. These swaps have a maturity date of September 28, 2014, provide for a fixed one month LIBOR rate of 0.5825% from February 8, 2013 through September 28, 2014 and qualify for cash flow hedge accounting. | |||||||||
As discussed above, the Secured Credit Facility was repaid with proceeds of the Unsecured Credit Facility the Company entered into on May 1, 2013. | |||||||||
(c) Richmond Credit Facility – In December 2012, the Company entered into a credit facility secured by the Company’s Richmond data center (the “Richmond Credit Facility”). This credit facility had a total borrowing capacity of $80 million at December 31, 2012, which was increased to $100 million in January 2013. This credit facility also includes an accordion feature that allows the Company to increase the size of the credit facility up to $125 million. This credit facility bears interest at variable rates ranging from LIBOR plus 4.0% to LIBOR plus 4.5%. The interest rate at September 30, 2013 was LIBOR plus 4.25%, or 4.43% per annum based on the Company’s overall leverage ratio as defined in the agreement, and the loan has a stated maturity date of December 18, 2015 with an option to extend for one additional year. | |||||||||
(d) Atlanta-Metro Equipment Loan – On April 9, 2010, the Company entered into a $25 million loan to finance equipment related to an expansion project at the Company’s Atlanta-Metro data center (the “Atlanta-Metro Equipment Loan”). The loan originally featured monthly interest-only payments but now requires monthly interest and principal payments. The loan bears interest at 6.85%, amortizes over ten years and matures on June 1, 2020. | |||||||||
(e) Miami Loan – In March 2008, the Company obtained a mortgage loan with a maximum borrowing capacity of $32.8 million secured by the Company’s Miami data center (“Miami Loan”). In December 2012, the Company extended the maturity date to allow repayment using proceeds from the Unsecured Credit Facility and also fixed the interest rate at 7%. As discussed above, this loan was repaid with proceeds of the Unsecured Credit Facility the Company entered into on May 1, 2013. | |||||||||
(f) Atlanta-Suwanee Land Loan – In 2011, the Company executed a $1.6 million loan agreement for the purchase of land adjacent to the Atlanta-Suwanee facility (the “Atlanta-Suwanee Land Loan”). The interest rate on the loan was 10% with a maturity date of September 26, 2013. In June 2013, the Company repaid the outstanding balance of the Atlanta-Suwanee Land Loan. | |||||||||
(g) Lenexa Loan – In June 2011, the Company entered into a $2.8 million seller financing to acquire the Lenexa facility (the “Lenexa Loan”). The interest rate on this loan was 5.43% and it matured on May 26, 2013. This loan was repaid at maturity. | |||||||||
(h) Santa Clara Bridge Loan – In November 2012, the Company entered into a $50 million bridge loan with Key Bank (the “Santa Clara Bridge Loan”). The loan had an interest rate of LIBOR plus 3.50% and a maturity date of February 11, 2013 with a three month extension option, which the Company exercised. As discussed above, this loan was repaid with proceeds of the Unsecured Credit Facility the Company entered into on May 1, 2013. | |||||||||
(i) Dallas Note – In connection with the Dallas data center acquisition, the Company obtained $10.25 million of seller-financed debt (the “Dallas Note”) which was due no later than December 31, 2013 and carried an escalating interest rate between 2.5% and 10% based on the repayment date of the loan. In June 2013, the Company repaid the outstanding balance of the seller-financed debt. | |||||||||
The weighted average interest rate of the Company’s unsecured debt, which includes the effect of deferred financing costs and swap derivatives, was 3.25% as of September 30, 2013. | |||||||||
The annual remaining principal payment requirements as of September 30, 2013 per the contractual maturities and excluding extension options are as follows (in thousands): | |||||||||
2013 | $ | 536 | |||||||
2014 | 2,239 | ||||||||
2015 | 72,397 | ||||||||
2016 | 2,567 | ||||||||
2017 | 297,749 | ||||||||
Thereafter | 233,888 | ||||||||
Total | $ | 609,376 | |||||||
As of September 30, 2013, the Company was in compliance with all of its covenants. | |||||||||
Interest_Rate_Derivative_Instr
Interest Rate Derivative Instruments (QualityTech, LP [Member]) | 9 Months Ended | |
Sep. 30, 2013 | ||
QualityTech, LP [Member] | ' | |
Interest Rate Derivative Instruments | ' | |
6 | Interest Rate Derivative Instruments | |
As discussed in Note 5, the Company entered into interest rate cap and swap agreements with a notional amount of $150 million on February 8, 2012. Derivatives that were entered into in September 2006 did not qualify for hedge accounting treatment, and therefore were not accounted for as hedges. Those derivative instruments were settled in February 2012 and were replaced by derivative instruments designated as cash flow hedges for hedge accounting. In addition, an interest rate cap of an additional $50 million was in place as of September 30, 2013 with a capped LIBOR rate of 3% through December 18, 2015. | ||
For derivative instruments that are accounted for as hedges, or for the effective portions of qualifying hedges, the change in fair value is recorded through other comprehensive income (loss). The total amount of unrealized gains recorded in other comprehensive income (loss) were $0 for the three months ended September 30, 2013, compared to the total amount of unrealized losses of $0.4 million for the three months ended September 30, 2012. The total amount of unrealized gains recorded in other comprehensive income (loss) for the nine months ended September 30, 2013 were $0.2 million, compared to the total amount of unrealized losses of $0.8 million for the nine months ended September 30, 2012. | ||
Interest expense related to payments on interest rate swaps for the three and nine months ended September 30, 2013 were $0.1 and $0.4 million, respectively, and $0.5 million for the nine months ended September 30, 2012. There were no such interest payments for the three months ended September 30, 2012. | ||
As of September 30, 2013 and December 31, 2012, the value of the interest rate swaps was a liability of $0.5 million and $0.8 million, respectively. These values were determined using Level 2 inputs within the valuation hierarchy. |
Member_Advances_and_Notes_Paya
Member Advances and Notes Payable (QualityTech, LP [Member]) | 9 Months Ended | |
Sep. 30, 2013 | ||
QualityTech, LP [Member] | ' | |
Member Advances and Notes Payable | ' | |
7 | Member Advances and Notes Payable | |
In October 2009, the Company amended and restated its outstanding loans with Chad L. Williams and entities controlled by Chad L. Williams into a loan in the original principal amount of $20.4 million (the “Member Advances”). The Member Advances were unsecured and had a maturity date of the earliest of December 31, 2013 or upon certain specified transactions. The Member Advances were subordinate in priority to the Company’s mortgage notes payable. Interest under the Member Advances accrued monthly at the rate of 9% per annum, which was added to the principal balance of the Member Advances if not paid. The balance of the Member Advances is separately disclosed on the face of the financial statements. On May 1, 2013, the lender under the Member Advances exercised an option to purchase $10 million of Class D units in exchange for the cancellation of $10 million of the outstanding balance under the Member Advances. The Company repaid the remaining outstanding balance of the Member Advances in the second quarter of 2013. |
Commitments_and_Contingencies
Commitments and Contingencies (QualityTech, LP [Member]) | 9 Months Ended | |
Sep. 30, 2013 | ||
QualityTech, LP [Member] | ' | |
Commitments and Contingencies | ' | |
8 | Commitments and Contingencies | |
The Company is subject to various routine legal proceedings and other matters in the ordinary course of business. While resolution of these matters cannot be predicted with certainty, management believes, based upon information currently available, that the final outcome will not have a material adverse impact on the Company’s financial statements. | ||
The Company previously entered into a master service agreement with a third party Internet service provider. The Company was not receiving industry-standard quality of Internet and connectivity services and terminated the contract. The third party Internet service provider challenged the grounds for the Company’s termination and sued the Company in Georgia state court seeking the fees the Company owed prior to the termination plus a termination fee equal to the amount the Company would have paid had it not terminated the agreement. The Georgia state court ruled to limit damages, if any, to six months of unpaid fees. Additional claims related to a prior settlement agreement between the parties and the enforceability of an early termination clause in a separate agreement have been raised and are being litigated. The Company has established an accrual associated with this matter which is recorded as a component of accrued liabilities. |
Partners_Capital_and_Incentive
Partners' Capital and Incentive Compensation Plans | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Partners' Capital and Incentive Compensation Plans | ' | ||||||||||||
9 | Partners’ Capital and Incentive Compensation Plans | ||||||||||||
The General Partner has the full power and authority to do all the things necessary to conduct the business of the Operating Partnership. | |||||||||||||
As of September 30, 2013, the Company had five classes of limited partnership units outstanding: Class A units of limited partnership interest (“Class A units”), Class C units of limited partnership interest (“Class C units”), Class D units of limited partnership interest (“Class D units”), Class RS units and Class O units. Class C units and Class D Units were converted to Class A units on a one-for-one basis in accordance with their terms immediately prior to the consummation of the initial public offering of QTS. | |||||||||||||
The Class A Units are redeemable at fair value at any time on or after one year following the later of the beginning of the first full calendar month following the first date on which the common shares of the General Partner (or its successor general partner) are publicly traded or the date of initial issuance of the units. The General Partner 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. Class RS units and Class O units may be subject to vesting and are pari passu with Class A units. Vested Class RS units and Class O units are convertible into Class A units based on formulas contained in the Partnership Agreement. | |||||||||||||
As of September 30, 2013, the Company sponsored the QualityTech, LP 2010 Equity Incentive Plan for its employees. Awards generally vest over a defined service period. For the nine months ended September 30, 2013, 224,244 awards were granted, 45,531 Class O units were forfeited and 3,750 Class RS units were converted to Class A units. | |||||||||||||
The following table summarizes information about awards outstanding as of September 30, 2013. | |||||||||||||
Awards Outstanding | |||||||||||||
Exercise | Awards | Weighted | |||||||||||
prices | outstanding | remaining | |||||||||||
contractual life | |||||||||||||
(years) | |||||||||||||
RS units | $ | — | 175,000 | 3 | |||||||||
O units | $ | 20-25 | 1,648,075 | 3 | |||||||||
Total | 1,823,075 | ||||||||||||
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 an accelerated basis based upon the Company meeting various performance goals. As of September 30, 2013 nonvested awards outstanding were 1.3 million and 0.1 million for the Class O units and Class RS units, respectively. The number of Class O units outstanding were not included in the Statements of Changes in Partners’ (Deficit) Capital. | |||||||||||||
On August 14, 2013, the Company made a distribution to its partners in an aggregate amount of $7.7 million. | |||||||||||||
Following the completion of the IPO, the Company may issue Class RS units or Class O units pursuant to the QTS Realty Trust, Inc. 2013 Equity Incentive Plan. |
Related_Party_Transactions
Related Party Transactions (QualityTech, LP [Member]) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
QualityTech, LP [Member] | ' | ||||||||||||||||
Related Party Transactions | ' | ||||||||||||||||
10 | Related Party Transactions | ||||||||||||||||
In addition to the member advances and notes payable and the repayment thereof discussed in Note 7, the Company executed transactions with entities in which one of the Company’s partners had an ownership interest or with one of the Company’s partners directly. Such transactions include automobile, furniture and equipment purchases as well as building operating lease payments, an allocation of insurance expense and reimbursement at the related party’s cost for the use of a private aircraft service by our officers and directors. | |||||||||||||||||
The transactions which occurred during the three and nine months ended September 30, 2013 and 2012 are outlined below (in thousands): | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Tax, utility, insurance and other reimbursement | $ | 18 | $ | 20 | 121 | 39 | |||||||||||
Rent expense | 264 | 143 | 712 | 429 | |||||||||||||
Capital assets acquired | 126 | 47 | 141 | 891 | |||||||||||||
Total | $ | 408 | $ | 210 | 974 | 1,359 | |||||||||||
In the third quarter of 2012, the Company revised its related party capital asset purchasing arrangement. The Company now pays vendors directly for such purchases and pays only an agent fee to the related party. Only the agent fee is recognized as a related party transaction subsequent to August 2012. | |||||||||||||||||
Certain employees of the Company provided services to companies outside the consolidated group for which the Company is not reimbursed. These amounts were not material for the three and nine months ended September 30, 2013 and 2012. This activity was discontinued by the Company during the second quarter of 2013. | |||||||||||||||||
In addition, as of September 30, 2013, the Company had incurred $2.2 million of certain legal, accounting and related costs on behalf of QTS in connection with the initial public offering which are reflected in Other Assets in the Company’s Interim Consolidated Balance Sheets. | |||||||||||||||||
Customer_Leases_as_Lessor
Customer Leases, as Lessor (QualityTech, LP [Member]) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
QualityTech, LP [Member] | ' | ||||
Customer Leases, as Lessor | ' | ||||
11 | Customer Leases, as Lessor | ||||
Future minimum lease payments to be received under non-cancelable operating customer leases (exclusive of recoveries of operating costs from customers) are as follows for the periods ending December 31 (in thousands): | |||||
Period Ending December 31, | |||||
2013 (October - December) | $ | 33,483 | |||
2014 | 131,120 | ||||
2015 | 100,654 | ||||
2016 | 71,404 | ||||
2017 | 51,762 | ||||
Thereafter | 91,383 | ||||
Total | $ | 479,806 | |||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments (QualityTech, LP [Member]) | 9 Months Ended | |
Sep. 30, 2013 | ||
QualityTech, LP [Member] | ' | |
Fair Value of Financial Instruments | ' | |
12 | Fair Value of Financial Instruments | |
ASC Topic 825 requires disclosure of fair value information about financial instruments, whether or not recognized in the condensed 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, restricted cash approximate fair value. | ||
Credit facilities and mortgage notes payable: The fair value of the Company’s floating rate mortgage loans was estimated using Level 2 “significant other observable inputs” such as available market information and discounted cash flows analyses based on borrowing rates that the Company believes it could obtain with similar terms and maturities. The Company did not have interest rates which were materially different than current market conditions and therefore, the fair value of each of the mortgage notes payable approximated the carrying value of each note. | ||
Other debt instruments: The fair value of the Company’s other debt instruments (including capital leases) were estimated in the same manner as the credit facilities and mortgage notes payable above. Similarly, because each of these instruments did not have interest rates which were materially different than current market conditions and therefore, the fair value of each instrument approximated the respective carrying values. | ||
Subsequent_Events
Subsequent Events (QualityTech, LP [Member]) | 9 Months Ended | |
Sep. 30, 2013 | ||
QualityTech, LP [Member] | ' | |
Subsequent Events | ' | |
13 | Subsequent Events | |
On October 15, 2013, in connection with the initial public offering of QTS, the Company and QTS consummated a series of transactions, including the merger of General Atlantic REIT, Inc. with QTS, pursuant to which QTS became the sole general partner and majority owner of the Company. In addition, in connection with the initial public offering of QTS, all of the Company’s outstanding Class C units and Class D units automatically converted into Class A units. These transactions are described in greater detail in the final prospectus, dated October 8, 2013, relating to the initial public offering, which QTS filed with the SEC. In the initial public offering, QTS issued 14,087,500 shares of its Class A common stock, $0.01 par value per share, including shares issued pursuant to the underwriters’ option to purchase additional shares, which was exercised in full, at a price to the public of $21 per share. QTS Realty Trust, Inc.’s Class A common stock trades on the New York Stock Exchange under the ticker symbol “QTS”. Following the closing of the initial public offering, QTS owned approximately 78.8% of the Company’s limited partnership interests. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
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. | |||||||||||||||||
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 amounts reported in the financial statement and accompanying notes. Actual results may differ from these estimates and assumptions. | |||||||||||||||||
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. | |||||||||||||||||
QualityTech, LP [Member] | ' | ||||||||||||||||
Basis of Presentation | ' | ||||||||||||||||
Basis of Presentation – The accompanying unaudited condensed consolidated financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. | |||||||||||||||||
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 and 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, fixed assets, acquired intangible assets and certain accruals. | |||||||||||||||||
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. | |||||||||||||||||
Principles of Consolidation | ' | ||||||||||||||||
Principles of Consolidation – The consolidated condensed financial statements include the accounts of QualityTech, LP and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in the financial statements. | |||||||||||||||||
Real Estate Assets | ' | ||||||||||||||||
Real Estate Assets – Real estate assets are reported at cost. All capital improvements for the income-producing properties that extend their useful life are capitalized to individual property improvements and depreciated over their estimated useful lives. Depreciation 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. The aggregate depreciation charged to operations was $9.7 million and $7.6 million for the three months ended September 30, 2013 and 2012, respectively, and $27.2 million and $21.5 million for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||
The Company capitalizes certain development costs, including internal costs, incurred in connection with redevelopment of data center facilities. The capitalization of costs during the construction period (including interest and related loan fees, property taxes and other direct and indirect costs) begins when redevelopment efforts commence and ends when the asset is ready for its intended use. Capitalization of such costs, excluding interest, aggregated to $2.4 million and $1.8 million for the three months ended September 30, 2013 and 2012, respectively, and $6.3 million and $5.3 million for the nine months ended September 30, 2013 and 2012, 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 redevelopment and other costs expended during the construction period. Interest is capitalized until the property is ready for its intended use. Interest costs capitalized totaled $0.9 million and $0.4 million for the three months ended September 30, 2013 and 2012, respectively, and $3.0 million and $1.5 million for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||
Acquisition of Real Estate | ' | ||||||||||||||||
Acquisition of Real Estate – Purchase accounting is applied to the assets and liabilities related to all real estate investments acquired in accordance to 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 real estate acquired is allocated to the acquired tangible assets, consisting primarily of land, building and improvements, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, value of in-place leases and value of customer relationships. | |||||||||||||||||
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. | |||||||||||||||||
Intangible assets and liabilities include acquired above-market leases, below-market leases, in-place leases and customer relationships. | |||||||||||||||||
Acquired in-place lease costs 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, including write-offs for terminated leases, totaled $0.5 million and $1.5 million for the three and nine months ended September 30, 2013, respectively, with no material amortization during the three and nine months ended September 30, 2012. | |||||||||||||||||
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, including write-offs for terminated leases, totaled $0.4 million and $0.2 million for the three months ended September 30, 2013 and 2012, respectively, and $1.2 million and $0.6 million for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||
Should a customer terminate its lease, the unamortized portions of the acquired above-market leases, below-market leases, in-place leases and customer relationships associated with that customer are written off to amortization expense or rental revenue, as indicated above. | |||||||||||||||||
Impairment of Long-Lived and Intangible Assets | ' | ||||||||||||||||
Impairment of Long-Lived and Intangible Assets – 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. No impairment losses were recorded during the three and nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||
Restricted Cash | ' | ||||||||||||||||
Restricted Cash – Restricted cash includes accounts restricted by the Company’s loan agreements and escrow deposits for interest, insurance, taxes and capital improvements held by the various banks and financial institutions as required by the loan agreements. Such deposits are held in bank checking or investment accounts with original maturities of three months or less. | |||||||||||||||||
Deferred Costs | ' | ||||||||||||||||
Deferred Costs – Deferred costs, net, on the Company’s balance sheets include both financing costs and leasing costs. | |||||||||||||||||
Deferred financing costs represent fees and other costs incurred in connection with obtaining debt and are amortized over the term of the loan and are included in interest expense. Amortization of the deferred financing costs was $0.6 million and $0.8 million for the three months ended September 30, 2013 and 2012, respectively, and $2.2 million and $2.6 million for the nine months ended September 30, 2013 and 2012, respectively. During the nine months ended September 30, 2013, the Company wrote off unamortized financing costs of $2.0 million in connection with the expansion of its revolving and term credit facilities. In addition, during the nine months ended September 30, 2013, the Company wrote off unamortized financing costs of $1.3 million in connection with an asset securitization which the Company is no longer pursuing due to the expansion of the credit facility. During the nine months ended September 30, 2012, the Company wrote off unamortized financing costs of $1.4 million, primarily relating to the Suwanee, GA and Richmond, VA loans that were repaid during the quarter. | |||||||||||||||||
Deferred financing costs, net of accumulated amortization, are as follows (dollars in thousands): | |||||||||||||||||
(dollars in thousands) | September 30, | December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||||
(unaudited) | |||||||||||||||||
Deferred financing costs | $ | 9,159 | $ | 10,165 | |||||||||||||
Accumulated amortization | (1,231 | ) | (3,309 | ) | |||||||||||||
Deferred financing costs, net | $ | 7,928 | $ | 6,856 | |||||||||||||
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 $3.2 million and $2.4 million for the nine months ended September 30, 2013 and 2012, respectively. Deferred leasing costs, net of accumulated amortization are as follows: | |||||||||||||||||
(dollars in thousands) | September 30, | December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||||
(unaudited) | |||||||||||||||||
Deferred leasing costs | $ | 17,030 | $ | 12,567 | |||||||||||||
Accumulated amortization | (5,768 | ) | (4,361 | ) | |||||||||||||
Deferred leasing costs, net | $ | 11,262 | $ | 8,206 | |||||||||||||
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 $7.6 million and $6.7 million as of September 30, 2013 and December 31, 2012, respectively. Additionally, $1.3 million and $1.2 million of deferred income was amortized into revenues for the three months ended September 30, 2013 and 2012, respectively, and $3.5 million and $3.0 million for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||
Interest Rate Derivative Instruments | ' | ||||||||||||||||
Interest Rate Derivative Instruments – The Company utilizes derivatives to manage its interest rate exposure. The interest rate swaps entered into in September 2006 did not meet the criteria for hedge accounting and accordingly, the Company reported the change in the fair value of the derivative in interest expense in the accompanying Statements of Operations and Comprehensive Loss. | |||||||||||||||||
During February 2012, the Company entered into interest rate swaps with a notional amount of $150 million which are cash flow hedges and qualify for hedge accounting. For these hedges, the effective portion of the change in fair value is recognized through other comprehensive income or loss. Amounts are reclassified out of other comprehensive income (loss) as the hedged item is recognized in earnings, either for ineffectiveness or for amounts paid relating to the hedge. As there was no ineffectiveness recorded in the periods presented, the Company has reflected the change in the fair value of the instrument in other comprehensive income (loss). | |||||||||||||||||
For derivative instruments that are not accounted for using hedge accounting, or for the ineffective portions of qualifying hedges, the change in fair value is recorded through interest expense in the respective period. | |||||||||||||||||
Equity-based Compensation | ' | ||||||||||||||||
Equity-based Compensation – The Company issued Class RS units of limited partnership interest (“Class RS units”) or Class O units of limited partnership interest (“Class O units” and with the Class RS units, the “LTIP units”) to an affiliated company, QualityTech Employee Pool, LLC (“Employee Pool”), on behalf of employees and non-employee directors who are granted an award under the QualityTech, LP 2010 Equity Incentive Plan. 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 associated with the portion of awards classified as equity are measured based upon their estimated fair value on the date of grant or modification. Equity-based compensation costs associated with the portion of awards classified as liabilities are measured based upon their estimated fair value at the grant date and re-measured as of the end of each period. The Company recorded equity-based compensation expense net of repurchased awards acquired of $0.5 million and $0.1 million for the three months ended September 30, 2013, and 2012, respectively, and $1.3 million and $0.3 million for the nine months ended September 30, 2013 and 2012, respectively. Following the completion of the IPO, the Company may issue Class RS units or Class O units pursuant to the QTS Realty Trust, Inc. 2013 Equity Incentive Plan. | |||||||||||||||||
Rental Revenue | ' | ||||||||||||||||
Rental Revenue – The Company, as a lessor, has retained substantially all 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 $2.8 million and $2.4 million as of September 30, 2013 and December 31, 2012, respectively. Rental revenue also includes amortization of set-up fees which are amortized over the term of the respective lease as discussed above. | |||||||||||||||||
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 $0.4 million and $0.5 million as of September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||
Capital Lease | ' | ||||||||||||||||
Capital Lease – 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. | |||||||||||||||||
In 2011, the Company entered into capital leases for certain equipment. The outstanding liabilities for the capital leases were $2.0 million and $2.5 million as of September 30, 2013 and December 31, 2012, respectively. Depreciation related to the associated assets is included in depreciation and amortization expense in the Statements of Operations and Comprehensive Loss. | |||||||||||||||||
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 (Loss) 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. | |||||||||||||||||
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. | |||||||||||||||||
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 in the United States. | |||||||||||||||||
Restructuring | ' | ||||||||||||||||
Restructuring – In March 2012, the Company decided to consolidate its New York area operations into the New Jersey data center facility. The Company transferred certain customers from the New York City facility to the New Jersey facility. As of September 30, 2012, the Company reserved $3.3 million for the cost of this consolidation. As this consolidation was completed in 2012, there were no restructuring costs incurred during the nine months ended September 30, 2013. | |||||||||||||||||
Customer Concentrations | ' | ||||||||||||||||
Customer Concentrations – As of September 30, 2013, two of the Company’s customers represented 7% and 6%, respectively, of its total monthly rental revenue. No other customers exceeded 5% of total monthly rental revenue. | |||||||||||||||||
As of September 30, 2013, five of the Company’s customers exceeded 5% of total accounts receivable. In aggregate, these five customers accounted for 36% of total accounts receivable. None of these five customers exceeded 10% of total accounts receivable. | |||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Income Taxes – The Company is obligated to comply with Internal Revenue Service real estate investment trust (“IRS REIT”) tax regulations in accordance with the unit holders’ agreement. In order to comply with this obligation, the Company elected for one of its existing subsidiaries to be taxed as a taxable REIT subsidiary under the IRS REIT tax regulations. The taxable REIT subsidiary is allocated income and expense based on IRS REIT tax regulations. | |||||||||||||||||
For the taxable REIT subsidiary, 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. | |||||||||||||||||
The Company’s tax provision has not changed materially subsequent to December 31, 2012. | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Fair Value Measurements – ASC Topic 820 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. | |||||||||||||||||
Financial assets and liabilities measured at fair value in the financial statements on a recurring basis consist of the Company’s derivatives. The fair values of the derivatives are determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. The analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves (“significant other observable inputs”). The fair value calculation also includes an amount for risk of non-performance using “significant unobservable inputs” such as estimates of current credit spreads to evaluate the likelihood of default. The Company has concluded as of September 30, 2013 and December 31, 2012 that the fair value associated to “significant unobservable inputs” for risk of non-performance was insignificant to the overall fair value of the derivative agreements and, as a result, have determined that the relevant inputs for purposes of calculating the fair value of the derivative agreements, in their entirety, were based upon “significant other observable inputs.” The Company determined the fair value of derivatives using level 2 inputs. These methods of assessing fair value result in a general approximation of value, and such value may never be realized. | |||||||||||||||||
The Company’s financial instruments held at fair value are presented below as of September 30, 2013 and December 31, 2012 (dollars in thousands): | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
September 30, 2013 | |||||||||||||||||
Financial Liabilities: | |||||||||||||||||
Interest rate swap liability(1) | $ | 547 | $ | — | $ | 547 | $ | — | |||||||||
December 31, 2012 | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Restricted deposits, held at fair value | $ | 146 | $ | 146 | $ | — | $ | — | |||||||||
Financial Liabilities: | |||||||||||||||||
Interest rate swap liability(1) | $ | 767 | $ | — | $ | 767 | $ | — | |||||||||
-1 | The Company used inputs from quoted prices for similar assets and liabilities in active markets that are directly or indirectly observable relating to the measurement of the interest rate swaps. The fair value measurement of the interest rate swaps have been classified as Level 2. | ||||||||||||||||
Short Term Instruments | ' | ||||||||||||||||
Short-term instruments: The carrying amounts of cash and cash equivalents, restricted cash approximate fair value. | |||||||||||||||||
Credit Facilities and Mortgage Notes Payable | ' | ||||||||||||||||
Credit facilities and mortgage notes payable: The fair value of the Company’s floating rate mortgage loans was estimated using Level 2 “significant other observable inputs” such as available market information and discounted cash flows analyses based on borrowing rates that the Company believes it could obtain with similar terms and maturities. The Company did not have interest rates which were materially different than current market conditions and therefore, the fair value of each of the mortgage notes payable approximated the carrying value of each note. | |||||||||||||||||
Other Debt Instruments | ' | ||||||||||||||||
Other debt instruments: The fair value of the Company’s other debt instruments (including capital leases) were estimated in the same manner as the credit facilities and mortgage notes payable above. Similarly, because 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. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) (QualityTech, LP [Member]) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
QualityTech, LP [Member] | ' | ||||||||||||||||
Deferred Financing Costs, Net of Accumulated Amortization | ' | ||||||||||||||||
Deferred financing costs, net of accumulated amortization, are as follows (dollars in thousands): | |||||||||||||||||
(dollars in thousands) | September 30, | December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||||
(unaudited) | |||||||||||||||||
Deferred financing costs | $ | 9,159 | $ | 10,165 | |||||||||||||
Accumulated amortization | (1,231 | ) | (3,309 | ) | |||||||||||||
Deferred financing costs, net | $ | 7,928 | $ | 6,856 | |||||||||||||
Deferred Leasing Costs, Net of Accumulated Amortization | ' | ||||||||||||||||
Deferred leasing costs, net of accumulated amortization are as follows: | |||||||||||||||||
(dollars in thousands) | September 30, | December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||||
(unaudited) | |||||||||||||||||
Deferred leasing costs | $ | 17,030 | $ | 12,567 | |||||||||||||
Accumulated amortization | (5,768 | ) | (4,361 | ) | |||||||||||||
Deferred leasing costs, net | $ | 11,262 | $ | 8,206 | |||||||||||||
Financial Instruments Held at Fair Value | ' | ||||||||||||||||
The Company’s financial instruments held at fair value are presented below as of September 30, 2013 and December 31, 2012 (dollars in thousands): | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
September 30, 2013 | |||||||||||||||||
Financial Liabilities: | |||||||||||||||||
Interest rate swap liability(1) | $ | 547 | $ | — | $ | 547 | $ | — | |||||||||
December 31, 2012 | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Restricted deposits, held at fair value | $ | 146 | $ | 146 | $ | — | $ | — | |||||||||
Financial Liabilities: | |||||||||||||||||
Interest rate swap liability(1) | $ | 767 | $ | — | $ | 767 | $ | — | |||||||||
-1 | The Company used inputs from quoted prices for similar assets and liabilities in active markets that are directly or indirectly observable relating to the measurement of the interest rate swaps. The fair value measurement of the interest rate swaps have been classified as Level 2. |
Acquisitions_of_Real_Estate_Ta
Acquisitions of Real Estate (Tables) (QualityTech, LP [Member]) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
QualityTech, LP [Member] | ' | ||||||||||||||||
Consideration for the Sacramento Facility and the Adjusted Preliminary Allocation of the Fair Value of Assets Acquired | ' | ||||||||||||||||
The following table summarizes the consideration for the Sacramento facility and the adjusted preliminary allocation of the fair value of assets acquired as of September 30, 2013 (in thousands): | |||||||||||||||||
Adjusted | Original | Adjustment | Weighted | ||||||||||||||
Sacramento | Sacramento | average | |||||||||||||||
facility as of | facility as of | useful | |||||||||||||||
September 30, | December 31, | life | |||||||||||||||
2013 | 2012 | ||||||||||||||||
Working capital | $ | — | $ | — | $ | — | |||||||||||
Buildings | 52,439 | 52,753 | (314 | ) | 40 | ||||||||||||
Land | 1,481 | 1,485 | (4 | ) | |||||||||||||
Tenant relationship | 5,366 | 5,029 | 337 | 4 | |||||||||||||
In place leases | 3,964 | 3,202 | 762 | 2 | |||||||||||||
Above (below) market leases | — | 781 | (781 | ) | 1 | ||||||||||||
Total purchase price | $ | 63,250 | $ | 63,250 | $ | — | |||||||||||
Real_Estate_Assets_and_Constru1
Real Estate Assets and Construction in Progress (Tables) (QualityTech, LP [Member]) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
QualityTech, LP [Member] | ' | ||||||||||||||||
Summary of Properties Owned by the Operating Partnership | ' | ||||||||||||||||
The following is a summary of properties owned by the Operating Partnership as of September 30, 2013 and December 31, 2012 (in thousands): | |||||||||||||||||
As of September 30, 2013 (unaudited): | |||||||||||||||||
Property Location | Land | Buildings and | Construction | Total Cost | |||||||||||||
Improvements | in Progress | ||||||||||||||||
Owned Properties | |||||||||||||||||
Suwanee, Georgia (Atlanta-Suwanee) | $ | 3,521 | $ | 118,473 | $ | 6,031 | $ | 128,025 | |||||||||
Atlanta, Georgia (Atlanta-Metro) | 15,314 | 294,124 | 9,076 | 318,514 | |||||||||||||
Santa Clara, California* | — | 85,832 | 822 | 86,654 | |||||||||||||
Richmond, Virginia | 2,180 | 107,548 | 64,343 | 174,071 | |||||||||||||
Sacramento, California | 1,481 | 52,725 | 2,796 | 57,002 | |||||||||||||
Dallas, Texas | 5,808 | — | 20,733 | 26,541 | |||||||||||||
Miami, Florida | 1,777 | 27,499 | — | 29,276 | |||||||||||||
Lenexa, Kansas | 437 | 3,317 | — | 3,754 | |||||||||||||
Wichita, Kansas | — | 1,407 | — | 1,407 | |||||||||||||
30,518 | 690,925 | 103,801 | 825,244 | ||||||||||||||
Leased Properties | |||||||||||||||||
Jersey City, New Jersey | — | 19,574 | 2,829 | 22,403 | |||||||||||||
Overland Park, Kansas | — | 739 | — | 739 | |||||||||||||
— | 20,313 | 2,829 | 23,142 | ||||||||||||||
$ | 30,518 | $ | 711,238 | $ | 106,630 | $ | 848,386 | ||||||||||
* | Owned facility subject to long-term ground sublease. | ||||||||||||||||
As of December 31, 2012: | |||||||||||||||||
Property Location | Land | Buildings and | Construction | Total Cost | |||||||||||||
Improvements | in Progress | ||||||||||||||||
Owned Properties | |||||||||||||||||
Suwanee, Georgia (Atlanta-Suwanee) | $ | 3,521 | $ | 103,438 | $ | 3,572 | $ | 110,531 | |||||||||
Atlanta, Georgia (Atlanta-Metro) | 15,314 | 263,192 | 6,658 | 285,164 | |||||||||||||
Santa Clara, California* | — | 83,536 | 245 | 83,781 | |||||||||||||
Richmond, Virginia | 2,179 | 71,629 | 71,986 | 145,794 | |||||||||||||
Sacramento, California | 1,485 | 52,753 | — | 54,238 | |||||||||||||
Miami, Florida | 1,777 | 27,111 | — | 28,888 | |||||||||||||
Lenexa, Kansas | 437 | 54 | 3,260 | 3,751 | |||||||||||||
Wichita, Kansas | — | 1,408 | — | 1,408 | |||||||||||||
24,713 | 603,121 | 85,721 | 713,555 | ||||||||||||||
Leased Properties | |||||||||||||||||
Jersey City, New Jersey | — | 18,666 | 1,888 | 20,554 | |||||||||||||
Overland Park, Kansas | — | 719 | — | 719 | |||||||||||||
— | 19,385 | 1,888 | 21,273 | ||||||||||||||
$ | 24,713 | $ | 622,506 | $ | 87,609 | $ | 734,828 | ||||||||||
* | Owned facility subject to long-term ground sublease. |
Credit_Facilities_and_Mortgage1
Credit Facilities and Mortgages Payable (Tables) (QualityTech, LP [Member]) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
QualityTech, LP [Member] | ' | ||||||||
Outstanding Debt | ' | ||||||||
Below is a listing of our outstanding debt as of September 30, 2013 and December 31, 2012 (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(unaudited) | |||||||||
Unsecured Credit Facility | $ | 520,000 | $ | — | |||||
Secured Credit Facility | — | 316,500 | |||||||
Richmond Credit Facility | 70,000 | 70,000 | |||||||
Atlanta-Metro Equipment Loan | 19,376 | 20,931 | |||||||
Miami Loan | — | 26,048 | |||||||
Atlanta-Suwanee Land Loan | — | 1,600 | |||||||
Lenexa Loan | — | 2,712 | |||||||
Santa Clara Bridge Loan | — | 50,000 | |||||||
Total | $ | 609,376 | $ | 487,791 | |||||
Annual Remaining Principal Payment | ' | ||||||||
The annual remaining principal payment requirements as of September 30, 2013 per the contractual maturities and excluding extension options are as follows (in thousands): | |||||||||
2013 | $ | 536 | |||||||
2014 | 2,239 | ||||||||
2015 | 72,397 | ||||||||
2016 | 2,567 | ||||||||
2017 | 297,749 | ||||||||
Thereafter | 233,888 | ||||||||
Total | $ | 609,376 | |||||||
Partners_Capital_and_Incentive1
Partners' Capital and Incentive Compensation Plans (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Summary of Information About Awards Outstanding | ' | ||||||||||||
The following table summarizes information about awards outstanding as of September 30, 2013. | |||||||||||||
Awards Outstanding | |||||||||||||
Exercise | Awards | Weighted | |||||||||||
prices | outstanding | remaining | |||||||||||
contractual life | |||||||||||||
(years) | |||||||||||||
RS units | $ | — | 175,000 | 3 | |||||||||
O units | $ | 20-25 | 1,648,075 | 3 | |||||||||
Total | 1,823,075 | ||||||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) (QualityTech, LP [Member]) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
QualityTech, LP [Member] | ' | ||||||||||||||||
Summary of Related Party Transactions | ' | ||||||||||||||||
The transactions which occurred during the three and nine months ended September 30, 2013 and 2012 are outlined below (in thousands): | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Tax, utility, insurance and other reimbursement | $ | 18 | $ | 20 | 121 | 39 | |||||||||||
Rent expense | 264 | 143 | 712 | 429 | |||||||||||||
Capital assets acquired | 126 | 47 | 141 | 891 | |||||||||||||
Total | $ | 408 | $ | 210 | 974 | 1,359 | |||||||||||
Customer_Leases_as_Lessor_Tabl
Customer Leases, as Lessor (Tables) (QualityTech, LP [Member]) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
QualityTech, LP [Member] | ' | ||||
Future Minimum Lease Payments to Be Received Under Non Cancelable Operating Customer Leases | ' | ||||
Future minimum lease payments to be received under non-cancelable operating customer leases (exclusive of recoveries of operating costs from customers) are as follows for the periods ending December 31 (in thousands): | |||||
Period Ending December 31, | |||||
2013 (October - December) | $ | 33,483 | |||
2014 | 131,120 | ||||
2015 | 100,654 | ||||
2016 | 71,404 | ||||
2017 | 51,762 | ||||
Thereafter | 91,383 | ||||
Total | $ | 479,806 | |||
Organization_and_Description_o1
Organization and Description of Business - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Jul. 02, 2013 | Sep. 30, 2013 |
Common Class A [Member] | |||
Organization And Description Of Business [Line Items] | ' | ' | ' |
Common stock, par value | ' | ' | $0.01 |
Number of common stock issued, under IPO | 1,000 | ' | 14,087,500 |
Ownership Interest | 78.80% | ' | ' |
Net proceeds from issuance of shares | ' | ' | $283,000,000 |
Common stock shares issued | 1,000 | ' | 14,087,500 |
Common stock value issued | $1,000 | $1,000 | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Percentage distribution of RETI taxable income to its stockholder | 90.00% |
Description_of_Business_Additi
Description of Business - Additional Information (Detail) (QualityTech, LP [Member], USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Organization And Description Of Business [Line Items] | ' |
Ownership interest of QTS Realty Trust, Inc. in limited partnership | 78.80% |
Other Assets [Member] | ' |
Organization And Description Of Business [Line Items] | ' |
Initial public offering issuance cost | 2.2 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (QualityTech, LP [Member], USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Feb. 29, 2012 | Feb. 08, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Subsidiaries | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Customer One [Member] | Customer Two [Member] | Five Customers [Member] | Revolving Credit Loan and Term Loan [Member] | Revolving Credit Loan and Term Loan [Member] | Revolving Credit Loan and Term Loan [Member] | Revolving Credit Loan and Term Loan [Member] | In Place Leases [Member] | In Place Leases [Member] | In Place Leases [Member] | In Place Leases [Member] | Tenant Relationship [Member] | Tenant Relationship [Member] | Tenant Relationship [Member] | Tenant Relationship [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | |||||
Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Land, Buildings and Improvements [Member] | Other Customers [Member] | Land, Buildings and Improvements [Member] | Leasehold Improvements [Member] | Other Customers [Member] | Five Customers [Member] | |||||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Useful life of property | ' | ' | '40 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '20 years | ' | '40 years | '20 years | ' | ' |
Depreciation expense from operation | $9,700,000 | $7,600,000 | $27,200,000 | $21,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Real estate cost capitalized excluding interest cost | 2,400,000 | 1,800,000 | 6,300,000 | 5,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Real estate interest cost capitalized incurred | 900,000 | 400,000 | 3,000,000 | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of lease cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | 0 | 1,500,000 | 0 | 400,000 | 200,000 | 1,200,000 | 600,000 | ' | ' | ' | ' | ' | ' |
Impairment losses | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of the deferred financing costs | ' | ' | 2,193,000 | 2,582,000 | ' | ' | ' | ' | ' | ' | 600,000 | 800,000 | 2,193,000 | 2,582,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Written off of unamortized debt cost | ' | ' | ' | 1,434,000 | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Written off Unamortization cost relation to Assets securitization | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of deferred leasing costs totaled | ' | ' | 3,200,000 | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred income | 7,561,000 | ' | 7,561,000 | ' | 6,745,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of deferred revenue | 1,300,000 | 1,200,000 | 3,500,000 | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount of derivative | ' | ' | ' | ' | ' | 150,000,000 | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company recorded equity-based compensation expense net of repurchased awards acquired | 500,000 | 100,000 | 1,300,000 | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of the straight-line rent receivable on the balance sheets included in rents and other receivables | 2,800,000 | ' | 2,800,000 | ' | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate allowance for doubtful accounts | 400,000 | ' | 400,000 | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding liabilities for the capital leases | 1,995,000 | ' | 1,995,000 | ' | 2,491,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring reserve | ' | 3,300,000 | ' | 3,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring cost | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of rental revenue earned | ' | ' | ' | ' | ' | ' | ' | 7.00% | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' |
Percentage of total accounts receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | 36.00% |
Number of subsidiaries taxed as taxable REIT | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Deferred Financing Costs, Net of Accumulated Amortization (Detail) (QualityTech, LP [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
QualityTech, LP [Member] | ' | ' |
Deferred Costs And Other Assets [Line Items] | ' | ' |
Deferred financing costs | $9,159 | $10,165 |
Accumulated amortization | -1,231 | -3,309 |
Deferred financing costs, net | $7,928 | $6,856 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Deferred Leasing Costs, Net of Accumulated Amortization (Detail) (QualityTech, LP [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
QualityTech, LP [Member] | ' | ' |
Deferred Costs And Other Assets [Line Items] | ' | ' |
Deferred leasing costs | $17,030 | $12,567 |
Accumulated amortization | -5,768 | -4,361 |
Deferred leasing costs, net | $11,262 | $8,206 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Financial Instruments Held at Fair Value (Detail) (QualityTech, LP [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial Liabilities: | ' | ' |
Interest rate swap liability | $547 | $767 |
Restricted Deposits [Member] | Fair Value Measurements, Level 1 [Member] | ' | ' |
Financial Assets: | ' | ' |
Restricted deposits, held at fair value | ' | 146 |
Interest Rate Swap [Member] | Fair Value Measurements, Level 2 [Member] | ' | ' |
Financial Liabilities: | ' | ' |
Interest rate swap liability | 547 | 767 |
Carrying Value [Member] | Restricted Deposits [Member] | ' | ' |
Financial Assets: | ' | ' |
Restricted deposits, held at fair value | ' | 146 |
Carrying Value [Member] | Interest Rate Swap [Member] | ' | ' |
Financial Liabilities: | ' | ' |
Interest rate swap liability | $547 | $767 |
Acquisitions_of_Real_Estate_Ad
Acquisitions of Real Estate - Additional Information (Detail) (QualityTech, LP [Member], USD $) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Feb. 28, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
sqft | ||||
QualityTech, LP [Member] | ' | ' | ' | ' |
Loans At Acquisition Date [Line Items] | ' | ' | ' | ' |
Cash consideration paid for acquisition | $10,250,000 | $102,924,000 | $86,351,000 | ' |
Debt finance obtained for acquisition | 10,250,000 | ' | ' | ' |
Transaction costs incurred related to acquisition | ' | 600,000 | ' | ' |
Aggregate costs related to acquisition | ' | 21,200,000 | ' | ' |
Area Of former semiconductor plant | ' | 700,000 | ' | ' |
Aggregate consideration related to acquisition | ' | ' | ' | $63,300,000 |
Acquisitions_of_Real_Estate_Co
Acquisitions of Real Estate - Consideration for the Sacramento Facility and the Adjusted Preliminary Allocation of the Fair Value of Assets Acquired (Detail) (QualityTech, LP [Member], USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Loans At Acquisition Date [Line Items] | ' |
Working capital | ' |
Buildings | 52,439 |
Land | 1,481 |
Total purchase price | 63,250 |
Buildings | '40 years |
Original Sacramento Facility [Member] | ' |
Loans At Acquisition Date [Line Items] | ' |
Working capital | ' |
Buildings | 52,753 |
Land | 1,485 |
Total purchase price | 63,250 |
Adjustment [Member] | ' |
Loans At Acquisition Date [Line Items] | ' |
Working capital | ' |
Buildings | -314 |
Land | -4 |
Total purchase price | ' |
Tenant Relationship [Member] | ' |
Loans At Acquisition Date [Line Items] | ' |
Above (below) market leases | 5,366 |
Above (below) market leases | '4 years |
Tenant Relationship [Member] | Original Sacramento Facility [Member] | ' |
Loans At Acquisition Date [Line Items] | ' |
Above (below) market leases | 5,029 |
Tenant Relationship [Member] | Adjustment [Member] | ' |
Loans At Acquisition Date [Line Items] | ' |
Above (below) market leases | 337 |
In Place Leases [Member] | ' |
Loans At Acquisition Date [Line Items] | ' |
Above (below) market leases | 3,964 |
Above (below) market leases | '2 years |
In Place Leases [Member] | Original Sacramento Facility [Member] | ' |
Loans At Acquisition Date [Line Items] | ' |
Above (below) market leases | 3,202 |
In Place Leases [Member] | Adjustment [Member] | ' |
Loans At Acquisition Date [Line Items] | ' |
Above (below) market leases | 762 |
Above (Below) Market Leases [Member] | ' |
Loans At Acquisition Date [Line Items] | ' |
Above (below) market leases | ' |
Above (below) market leases | '1 year |
Above (Below) Market Leases [Member] | Original Sacramento Facility [Member] | ' |
Loans At Acquisition Date [Line Items] | ' |
Above (below) market leases | 781 |
Above (Below) Market Leases [Member] | Adjustment [Member] | ' |
Loans At Acquisition Date [Line Items] | ' |
Above (below) market leases | ($781) |
Real_Estate_Assets_and_Constru2
Real Estate Assets and Construction in Progress - Summary of Properties Owned by the Operating Partnership (Detail) (QualityTech, LP [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Real Estate Properties [Line Items] | ' | ' |
Land | $30,518 | $24,713 |
Buildings and improvements | 711,238 | 622,506 |
Construction in Progress | 106,630 | 87,609 |
Total Cost | 848,386 | 734,828 |
Owned Properties [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | 30,518 | 24,713 |
Buildings and improvements | 690,925 | 603,121 |
Construction in Progress | 103,801 | 85,721 |
Total Cost | 825,244 | 713,555 |
Owned Properties [Member] | Suwanee, Georgia (Atlanta-Suwanee) [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | 3,521 | 3,521 |
Buildings and improvements | 118,473 | 103,438 |
Construction in Progress | 6,031 | 3,572 |
Total Cost | 128,025 | 110,531 |
Owned Properties [Member] | Atlanta, Georgia (Atlanta-Metro) [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | 15,314 | ' |
Buildings and improvements | 294,124 | ' |
Construction in Progress | 9,076 | ' |
Total Cost | 318,514 | ' |
Owned Properties [Member] | Santa Clara, California [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | ' | ' |
Buildings and improvements | 85,832 | 83,536 |
Construction in Progress | 822 | 245 |
Total Cost | 86,654 | 83,781 |
Owned Properties [Member] | Richmond, Virginia [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | 2,180 | 2,179 |
Buildings and improvements | 107,548 | 71,629 |
Construction in Progress | 64,343 | 71,986 |
Total Cost | 174,071 | 145,794 |
Owned Properties [Member] | Sacramento, California [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | 1,481 | 1,485 |
Buildings and improvements | 52,725 | 52,753 |
Construction in Progress | 2,796 | ' |
Total Cost | 57,002 | 54,238 |
Owned Properties [Member] | Dallas, Texas [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | 5,808 | ' |
Buildings and improvements | ' | ' |
Construction in Progress | 20,733 | ' |
Total Cost | 26,541 | ' |
Owned Properties [Member] | Miami, Florida [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | 1,777 | 1,777 |
Buildings and improvements | 27,499 | 27,111 |
Construction in Progress | ' | ' |
Total Cost | 29,276 | 28,888 |
Owned Properties [Member] | Lenexa, Kansas [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | 437 | 437 |
Buildings and improvements | 3,317 | 54 |
Construction in Progress | ' | 3,260 |
Total Cost | 3,754 | 3,751 |
Owned Properties [Member] | Wichita, Kansas [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | ' | ' |
Buildings and improvements | 1,407 | 1,408 |
Construction in Progress | ' | ' |
Total Cost | 1,407 | 1,408 |
Owned Properties [Member] | Atlanta, Georgia (Atlanta-Metro) [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | ' | 15,314 |
Buildings and improvements | ' | 263,192 |
Construction in Progress | ' | 6,658 |
Total Cost | ' | 285,164 |
Leased Properties [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | ' | ' |
Buildings and improvements | 20,313 | 19,385 |
Construction in Progress | 2,829 | 1,888 |
Total Cost | 23,142 | 21,273 |
Leased Properties [Member] | Jersey City, New Jersey [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | ' | ' |
Buildings and improvements | 19,574 | 18,666 |
Construction in Progress | 2,829 | 1,888 |
Total Cost | 22,403 | 20,554 |
Leased Properties [Member] | Overland Park, Kansas [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | ' | ' |
Buildings and improvements | 739 | 719 |
Construction in Progress | ' | ' |
Total Cost | $739 | $719 |
Credit_Facilities_and_Mortgage2
Credit Facilities and Mortgages Payable - Outstanding Debt (Detail) (Limited Partner [Member], QualityTech, LP [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Outstanding debt | $609,376 | $487,791 |
Unsecured Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Outstanding debt | 520,000 | ' |
Secured Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Outstanding debt | ' | 316,500 |
Richmond Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Outstanding debt | 70,000 | 70,000 |
Atlanta Metro Equipment Loan [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Outstanding debt | 19,376 | 20,931 |
Miami Loan [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Outstanding debt | ' | 26,048 |
Atlanta-Suwanee Land Loan [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Outstanding debt | ' | 1,600 |
Lenexa Loan [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Outstanding debt | ' | 2,712 |
Santa Clara Bridge Loan [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Outstanding debt | ' | $50,000 |
Credit_Facilities_and_Mortgage3
Credit Facilities and Mortgages Payable - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 9 Months Ended | ||||||||||||||||||||
In Millions, unless otherwise specified | Feb. 08, 2012 | Feb. 08, 2013 | Feb. 08, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | 1-May-13 | Sep. 30, 2013 | Feb. 08, 2012 | Sep. 30, 2013 | Dec. 31, 2011 | Sep. 28, 2010 | Feb. 08, 2012 | Feb. 08, 2012 | Sep. 30, 2013 | Jan. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Apr. 30, 2010 | Apr. 09, 2010 | Dec. 31, 2012 | Mar. 30, 2008 | Sep. 30, 2013 | Dec. 31, 2011 | 31-May-13 | Jun. 30, 2011 | Sep. 30, 2013 | Nov. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Limited Partner [Member] | Limited Partner [Member] | Limited Partner [Member] | Limited Partner [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | Unsecured Credit Facility [Member] | Unsecured Credit Facility [Member] | Secured Credit Facility [Member] | Secured Credit Facility [Member] | Secured Credit Facility [Member] | Secured Credit Facility [Member] | Secured Credit Facility [Member] | Secured Credit Facility [Member] | Richmond Credit Facility [Member] | Richmond Credit Facility [Member] | Richmond Credit Facility [Member] | Richmond Credit Facility [Member] | Richmond Credit Facility [Member] | Atlanta Metro Equipment Loan [Member] | Atlanta Metro Equipment Loan [Member] | Miami Loan [Member] | Miami Loan [Member] | Atlanta-Suwanee Land Loan [Member] | Atlanta-Suwanee Land Loan [Member] | Lenexa Loan [Member] | Lenexa Loan [Member] | Santa Clara Bridge Loan [Member] | Santa Clara Bridge Loan [Member] | Dallas Note [Member] | Dallas Note [Member] | Dallas Note [Member] | |
Interest Rate Cap [Member] | Interest Rate Cap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Term Loan [Member] | Revolving Credit Facility [Member] | Letter of Credit [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | QualityTech, LP [Member] | ||
Term Loan [Member] | Revolving Credit Facility [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility agreement date | ' | ' | ' | ' | ' | ' | ' | ' | 1-May-13 | ' | ' | 28-Sep-10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit Facility maximum borrowing capacity | ' | ' | ' | ' | ' | $225 | $350 | ' | ' | $575 | ' | ' | $170 | $125 | ' | ' | ' | $100 | $80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unsecured Credit Facility term | ' | ' | ' | ' | ' | '5 years | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit accordion feature | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase the amount of line of credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | 675 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional letter of credit outstanding | ' | ' | ' | ' | ' | ' | ' | 3.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in Maximum borrowing facility of line of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 270 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extended maturity date of line of credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28-Sep-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amended and extended credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 440 | ' | ' | ' | 125 | 315 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Possible increase in borrowing capacity due to accordion feature | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increased borrowing capacity after considering accordion feature | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 540 | ' | ' | ' | ' | ' | 125 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative instruments, notional amount | 150 | ' | 150 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate, description | 'One month LIBOR | ' | 'One month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate cap derivative contract cap rate | 2.05% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative instruments, maturity date | ' | 8-Feb-13 | ' | 28-Sep-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate cap derivative contract effective date | 8-Feb-12 | ' | 8-Feb-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate swap derivative contract interest rate | ' | ' | 0.58% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility interest rate description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Interest at variable rates ranging from LIBOR plus 4.0% to LIBOR plus 4.5% (rate at September 30, 2013 was LIBOR plus 4.25%, or 4.43% per annum) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility base for variable interest rate spread rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.25% | ' | ' | 4.00% | 4.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.50% | ' | ' | ' |
Credit facility base for variable interest rate spread rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.43% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18-Dec-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional extension period credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan agreement amount of loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25 | ' | $32.80 | ' | $1.60 | ' | $2.80 | ' | $50 | $10.25 | ' | ' |
Loan agreement interest rate | ' | ' | ' | ' | 9.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.85% | 7.00% | ' | ' | 10.00% | ' | 5.43% | ' | ' | ' | ' | ' |
Atlanta Metro equipment loan agreement aggregate term of loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan agreement, maturity date | ' | ' | ' | ' | 31-Dec-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Jun-20 | ' | ' | ' | 26-Sep-13 | ' | 26-May-13 | ' | 1-May-13 | ' | 31-Dec-13 | ' | ' |
Interest rate description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR plus 3.50% | ' | ' | ' |
Range of percentage of escalation interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.50% | 10.00% |
Weighted Average interest rate for Dallas note | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.25% | ' | ' |
Credit_Facilities_and_Mortgage4
Credit Facilities and Mortgages Payable - Annual Remaining Principal Payment (Detail) (Limited Partner [Member], Senior Notes [Member], QualityTech, LP [Member], USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Limited Partner [Member] | Senior Notes [Member] | QualityTech, LP [Member] | ' |
Debt Instrument [Line Items] | ' |
2013 | $536 |
2014 | 2,239 |
2015 | 72,397 |
2016 | 2,567 |
2017 | 297,749 |
Thereafter | 233,888 |
Total | $609,376 |
Interest_Rate_Derivative_Instr1
Interest Rate Derivative Instruments - Additional Information (Detail) (QualityTech, LP [Member], USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Feb. 08, 2012 | Sep. 30, 2013 | Feb. 29, 2012 | Feb. 08, 2012 | |
Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Fair Value Measurements, Level 2 [Member] | Fair Value Measurements, Level 2 [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | |||||
Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Cap [Member] | Interest Rate Cap [Member] | Interest Rate Cap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | |||||||||||||
LIBOR [Member] | |||||||||||||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative instruments, notional amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $50,000,000 | $150,000,000 | ' | $150,000,000 | $150,000,000 |
Capped LIBOR rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' |
Unrealized gains or losses on cash flow hedge derivative effective portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 400,000 | 200,000 | 800,000 | ' | ' | ' | ' | ' |
Interest expense related to payments on interest rate swaps | 4,343,000 | 6,646,000 | 15,977,000 | 19,039,000 | 100,000 | 0 | 400,000 | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate swap liability recorded at fair value | ' | ' | ' | ' | ' | ' | ' | ' | $500,000 | $800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Member_Advances_and_Notes_Paya1
Member Advances and Notes Payable - Additional Information (Detail) (QualityTech, LP [Member], USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | 1-May-13 |
QualityTech, LP [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Amended and Restated Loan From Related Party original principal Amount of loan | $20.40 | ' |
Member Advances original maturity date | 31-Dec-13 | ' |
Interest Rate For Members Advance | 9.00% | ' |
Amount of unit received in exchange of option exercised in respect of member advances | ' | 10 |
Cancellation of outstanding Members Advance on exercise of option | ' | $10 |
Partners_Capital_and_Incentive2
Partners' Capital and Incentive Compensation Plans - Additional Information (Detail) (QualityTech, LP [Member], USD $) | 1 Months Ended | 9 Months Ended |
In Millions, except Share data, unless otherwise specified | Aug. 31, 2013 | Sep. 30, 2013 |
Class | ||
Partners Capital And Distributions [Line Items] | ' | ' |
Number of classes of partnership units outstanding | ' | 5 |
Equity incentive plan, units granted | ' | 224,244 |
Distributions made to partners | $7.70 | ' |
RS units [Member] | ' | ' |
Partners Capital And Distributions [Line Items] | ' | ' |
Equity incentive plan, units converted | ' | 3,750 |
Nonvested awards outstanding | ' | 100,000 |
O units [Member] | ' | ' |
Partners Capital And Distributions [Line Items] | ' | ' |
Equity incentive plan, units forfeited | ' | 45,531 |
Nonvested awards outstanding | ' | 1,300,000 |
Partners_Capital_and_Incentive3
Partners' Capital and Incentive Compensation Plans - Summary of Information About Awards Outstanding (Detail) (QualityTech, LP [Member], USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Awards Outstanding | 1,823,075 |
RS units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Exercise price | ' |
Awards Outstanding | 175,000 |
Remaining term of awards | '3 years |
O units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Lower limit of exercise price | $20 |
Upper limit of exercise price | $25 |
Awards Outstanding | 1,648,075 |
Remaining term of awards | '3 years |
Related_Party_Transactions_Sum
Related Party Transactions - Summary of Related Party Transactions (Detail) (QualityTech, LP [Member], Affiliated Entity [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
QualityTech, LP [Member] | Affiliated Entity [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Tax, utility, insurance and other reimbursement | $18 | $20 | $121 | $39 |
Rent expense | 264 | 143 | 712 | 429 |
Capital assets acquired | 126 | 47 | 141 | 891 |
Total | $408 | $210 | $974 | $1,359 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (QualityTech, LP [Member], Other Assets [Member], USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
QualityTech, LP [Member] | Other Assets [Member] | ' |
Initial Public Offering [Line Items] | ' |
Initial public offering issuance cost | $2.20 |
Customer_Leases_as_Lessor_Futu
Customer Leases, as Lessor - Future Minimum Lease Payments to Be Received Under Non Cancelable Operating Customer Leases (Detail) (QualityTech, LP [Member], USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
QualityTech, LP [Member] | ' |
Operating Leased Assets [Line Items] | ' |
2013 (October - December) | $33,483 |
2014 | 131,120 |
2015 | 100,654 |
2016 | 71,404 |
2017 | 51,762 |
Thereafter | 91,383 |
Total | $479,806 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 15, 2013 | Oct. 15, 2013 | Oct. 15, 2013 |
Common Class A [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||
Common Class A [Member] | Common Class A [Member] | ||||
QualityTech, LP [Member] | |||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' |
Per share value of common stock issued, under IPO of QTS Realty Trust.inc | ' | $0.01 | ' | $21 | ' |
Ownership Interest | 78.80% | ' | 78.80% | ' | ' |
Common stock par value, Initial public offering | $0.01 | ' | ' | $0.01 | ' |
Number of common stock issued, under IPO | 1,000 | 14,087,500 | ' | ' | 14,087,500 |