Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | ||
Jun. 30, 2014 | Aug. 13, 2014 | Aug. 13, 2014 | |
Common Class A [Member] | Common Class B [Member] | ||
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-Q | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q2 | ' | ' |
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 | ' | 28,883,774 | 133,000 |
BALANCE_SHEETS
BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Real Estate Assets | ' | ' |
Land | $48,576 | $30,601 |
Buildings and improvements | 829,057 | 728,230 |
Less: Accumulated depreciation | -157,202 | -137,725 |
Total real estate assets | 720,431 | 621,106 |
Construction in progress | 183,516 | 146,904 |
Real Estate Assets, net | 903,947 | 768,010 |
Cash and cash equivalents | 7,489 | 5,210 |
Rents and other receivables, net | 12,574 | 14,434 |
Acquired intangibles, net | 19,554 | 5,396 |
Deferred costs, net | 23,076 | 19,150 |
Prepaid expenses | 4,298 | 1,797 |
Other assets, net | 19,989 | 17,359 |
TOTAL ASSETS | 990,927 | 831,356 |
LIABILITIES | ' | ' |
Mortgage notes payable | 87,739 | 88,839 |
Unsecured credit facility | 439,000 | 256,500 |
Capital lease obligations | 4,441 | 2,538 |
Accounts payable and accrued liabilities | 47,584 | 63,204 |
Dividends payable | 10,657 | 8,965 |
Advance rents, security deposits and other liabilities | 3,197 | 3,261 |
Deferred income | 8,177 | 7,892 |
Derivative liability | 159 | 453 |
TOTAL LIABILITIES | 600,954 | 431,652 |
EQUITY | ' | ' |
Common stock, $0.01 par value, 450,133,000 shares authorized, 29,016,774 and 28,972,774 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively | 290 | 289 |
Additional paid-in capital | 320,390 | 318,834 |
Accumulated other comprehensive income (loss) | -124 | -357 |
Accumulated deficit | -13,341 | -3,799 |
Total stockholders' equity | 307,215 | 314,967 |
Noncontrolling interests | 82,758 | 84,737 |
TOTAL EQUITY | 389,973 | 399,704 |
TOTAL LIABILITIES AND EQUITY | $990,927 | $831,356 |
BALANCE_SHEETS_Parenthetical
BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Statement Of Financial Position [Abstract] | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 450,133,000 | 450,133,000 |
Common stock, shares issued | 29,016,774 | 28,972,774 |
Common stock, shares outstanding | 29,016,774 | 28,972,774 |
STATEMENTS_OF_OPERATIONS_AND_C
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 |
Historical Predecessor [Member] | Historical Predecessor [Member] | |||
Revenues: | ' | ' | ' | ' |
Rental | $41,966 | $82,545 | $34,783 | $68,589 |
Recoveries from customers | 3,852 | 7,543 | 3,456 | 6,322 |
Cloud and managed services | 4,970 | 9,201 | 4,325 | 8,435 |
Other | 550 | 992 | 376 | 1,092 |
Total revenues | 51,338 | 100,281 | 42,940 | 84,438 |
Operating Expenses: | ' | ' | ' | ' |
Property operating costs | 16,529 | 32,752 | 14,884 | 29,292 |
Real estate taxes and insurance | 1,118 | 2,336 | 1,090 | 2,203 |
Depreciation and amortization | 13,817 | 27,064 | 11,246 | 22,061 |
General and administrative | 11,473 | 22,251 | 9,696 | 19,290 |
Restructuring | 1,046 | 1,046 | ' | ' |
Transaction costs | 1,089 | 1,153 | ' | ' |
Total operating expenses | 45,072 | 86,602 | 36,916 | 72,846 |
Operating income | 6,266 | 13,679 | 6,024 | 11,592 |
Other income and expenses: | ' | ' | ' | ' |
Interest income | ' | 8 | 7 | 13 |
Interest expense | -2,208 | -4,273 | -5,084 | -11,634 |
Other (expense) income, net | -110 | -110 | -2,179 | -3,277 |
Income (loss) before taxes | 3,948 | 9,304 | -1,232 | -3,306 |
Tax expense of taxable REIT subsidiaries | -27 | -55 | ' | ' |
Net income (loss) | 3,921 | 9,249 | -1,232 | -3,306 |
Net income attributable to noncontrolling interests | -831 | -1,961 | ' | ' |
Net income (loss) attributable to QTS Realty Trust, Inc | 3,090 | 7,288 | -1,232 | -3,306 |
Unrealized gain on swap | 127 | 232 | 140 | 212 |
Comprehensive income (loss) | $3,217 | $7,520 | ($1,092) | ($3,094) |
Net income per share attributable to common shares: | ' | ' | ' | ' |
Basic | $0.11 | $0.25 | ' | ' |
Diluted | $0.11 | $0.25 | ' | ' |
Weighted average common shares outstanding: | ' | ' | ' | ' |
Basic | 29,016,774 | 29,001,374 | ' | ' |
Diluted | 37,009,746 | 36,934,210 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_EQU
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Total stockholders' Equity [Member] | Noncontrolling Interest [Member] |
In Thousands | |||||||
Beginning balance at Dec. 31, 2013 | $399,704 | $289 | $318,834 | ($357) | ($3,799) | $314,967 | $84,737 |
Beginning balance, shares at Dec. 31, 2013 | ' | 28,973 | ' | ' | ' | ' | ' |
Issuance of nonvested | ' | 1 | -1 | ' | ' | ' | ' |
Issuance of nonvested shares | ' | 44 | ' | ' | ' | ' | ' |
Equity-based compensation expense | 1,976 | ' | 1,557 | ' | ' | 1,557 | 419 |
Other comprehensive loss | 295 | ' | ' | 233 | ' | 233 | 62 |
Dividend to shareholders | -16,830 | ' | ' | ' | -16,830 | -16,830 | ' |
Distribution to noncontrolling interests | -4,421 | ' | ' | ' | ' | ' | -4,421 |
Net income | 9,249 | ' | ' | ' | 7,288 | 7,288 | 1,961 |
Ending balance at Jun. 30, 2014 | $389,973 | $290 | $320,390 | ($124) | ($13,341) | $307,215 | $82,758 |
Ending balance, shares at Jun. 30, 2014 | ' | 29,017 | ' | ' | ' | ' | ' |
STATEMENTS_OF_CASH_FLOW_UNAUDI
STATEMENTS OF CASH FLOW (UNAUDITED) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Historical Predecessor [Member] | ||
Cash flow from operating activities: | ' | ' |
Net income (loss) | $9,249 | ($3,306) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ' | ' |
Depreciation and amortization | 25,668 | 21,003 |
Amortization of deferred loan costs | 1,314 | 1,605 |
Equity-based compensation expense | 1,976 | 795 |
Bad debt expense | 269 | 105 |
Write off of deferred loan costs | 110 | 2,031 |
Changes in operating assets and liabilities | ' | ' |
Rents and other receivables, net | 1,592 | -1,178 |
Prepaid expenses | -2,501 | -992 |
Restricted cash | ' | 146 |
Other assets | -252 | -554 |
Accounts payable and accrued liabilities | -7,996 | 43 |
Advance rents, security deposits and other liabilities | -64 | 163 |
Deferred income | 285 | 129 |
Net cash provided by operating activities | 29,650 | 19,990 |
Cash flow from investing activities: | ' | ' |
Acquisition of real estate | -73,300 | -21,174 |
Additions to property and equipment | -114,157 | -65,352 |
Cash used in investing activities | -187,457 | -86,526 |
Cash flow from financing activities: | ' | ' |
Credit facility proceeds | 182,500 | 55,506 |
Cash in transit | ' | 12,961 |
Payment of deferred financing costs | -924 | -3,783 |
Payment of cash dividend | -15,368 | ' |
Distribution to noncontrolling interest | -4,654 | ' |
Principal payments on capital lease obligation | -367 | -328 |
Scheduled mortgage principal debt repayments | -1,100 | -1,352 |
Net cash provided by financing activities | 160,087 | 63,004 |
Net increase (decrease) in cash and cash equivalents | 2,279 | -3,532 |
Cash and cash equivalents, beginning of period | 5,210 | 8,232 |
Cash and cash equivalents, end of period | 7,489 | 4,700 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ' | ' |
Cash paid for interest (excluding deferred financing costs and amounts capitalized) | 2,973 | 14,755 |
Noncash investing and financing activities: | ' | ' |
Accrued capital additions | 32,638 | 27,260 |
Member advances exchanged for LP units | ' | $10,000 |
Description_of_Business
Description of Business | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Description of Business | ' |
1. Description of Business | |
QTS Realty Trust, Inc. (the “Company”) through its controlling interest in QualityTech, L.P. (the “Operating Partnership”) and the subsidiaries of the Operating Partnership, is engaged in the business of owning, acquiring, redeveloping and managing multi-tenant data centers. Inclusive of the recently acquired Chicago facility, the Company’s portfolio consists of 12 properties with data centers located throughout the continental United States. | |
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 “IPO”), including shares issued pursuant to the underwriters’ option to purchase additional shares, which was exercised in full, and received net proceeds of approximately $279 million. The Company intends to elect to be taxed as a real estate investment trust (“REIT”), for U.S. federal income tax purposes, commencing with its taxable year ended December 31, 2013. | |
Concurrently with the completion of the IPO, the Company consummated a series of transactions, including the merger of General Atlantic REIT, Inc. with the Company, pursuant to which it became the sole general partner and majority owner of Quality Tech, LP, a Delaware limited partnership (the “Operating Partnership”). The Company contributed the net proceeds received from the IPO to the Operating Partnership in exchange for partnership units therein. As of June 30, 2014, the Company owned approximately 78.8% of the interests in 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’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 the Operating Partnership’s business and affairs, subject to certain limited approval and voting rights of the limited partners. The Company’s board of directors manages the Company’s business and affairs. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||
2. Summary of Significant Accounting Policies | |||||||||||||||||
Basis of Presentation – The accompanying financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. | |||||||||||||||||
The Interim Condensed Consolidated Statements of Operations and Comprehensive Income and the Statements of Cash Flows of the Company for the three and six months ended June 30, 2014 and the Balance Sheets as of June 30, 2014 and December 31, 2013 present the accounts of QTS Realty Trust, Inc. and its majority owned subsidiaries. The Interim Condensed Consolidated Statement of Operations and Comprehensive Income and the Statement of Cash Flows for the three and six months ended June 30, 2013 present the accounts of QualityTech, LP and its majority owned subsidiaries (the “Historical Predecessor”). | |||||||||||||||||
Use of Estimates – The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of fixed assets, allowances for doubtful accounts and deferred tax assets and the valuation of derivatives, real estate assets, acquired intangible assets and certain accruals. | |||||||||||||||||
Principles of Consolidation – The consolidated financial statements include the accounts of QTS Realty Trust, Inc. and its majority-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 lives 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 $10.7 million and $9.0 million for the three months ended June 30, 2014 and 2013, respectively, and $20.9 million and $17.5 million for the six months ended June 30, 2014 and 2013, respectively. The Company capitalizes certain development costs, including internal costs incurred in connection with development. The capitalization of costs during the construction period (including interest and related loan fees, property taxes and other direct and indirect costs) begins when development efforts commence and ends when the asset is ready for its intended use. Capitalization of such costs, excluding interest, aggregated to $2.5 million and $2.2 for the three months ended June 30, 2014 and 2013, respectively, and $4.7 million and $3.9 million for the six months ended June 30, 2014 and 2013, respectively. Interest is capitalized during the period of development by first applying the Company’s actual borrowing rate on the related asset and second, to the extent necessary, by applying the Company’s weighted average effective borrowing rate to the actual development and other costs expended during the construction period. Interest is capitalized until the property is ready for its intended use. Interest costs capitalized totaled $1.8 million and $1.1 million for the three months ended June 30, 2014 and 2013, respectively, and $3.4 million and $2.1 million for the six months ended June 30, 2014 and 2013, respectively. | |||||||||||||||||
Acquisition of Real Estate – Acquisitions of real estate are either accounted for as asset acquisitions or business combinations depending on facts and circumstances. Purchase accounting is applied to the assets and liabilities related to all real estate investments acquired in accordance 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. | |||||||||||||||||
Acquired in-place leases are amortized as amortization expense on a straight-line basis over the remaining life of the underlying leases. Amortization of acquired in place lease costs, including write-offs for terminated leases totaled $0.6 million and $0.4 million for the three months ended June 30, 2014 and 2013, respectively, and $1.3 million and $1.0 million for the six months ended June 30, 2014 and 2013, respectively. | |||||||||||||||||
Acquired customer relationships are amortized as amortization expense on a straight-line basis over the expected life of the customer relationship. Amortization of acquired customer relationships totaled $0.3 million and $0.4 million for the three months ended June 30, 2014 and 2013, respectively, and $0.7 million and $0.8 million for the six months ended June 30, 2014 and 2013, respectively. | |||||||||||||||||
See Note 3 for discussion of the preliminary purchase price allocation for the New Jersey facility that the Company acquired on June 30, 2014. | |||||||||||||||||
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 for the three and six months ended June 30, 2014 and 2013, 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. | |||||||||||||||||
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 $0.7 million for the three months ended June 30, 2014 and 2013, respectively, and $1.2 million and $1.6 million for the six months ended June 30, 2014 and 2013, respectively. During the three months ended June 30, 2014, the Company wrote off unamortized financing costs of $0.1 million in connection with the modification of its credit facility that is secured by the Richmond data center. During the three months ended June 30, 2013, the Company wrote off unamortized financing costs of $2.0 million in connection with the restructuring of its unsecured credit facility. During the six months ended June 30, 2013, in addition to the aforementioned $2.0 million write off, the Company wrote off unamortized financing costs of $1.3 million in connection with an asset securitization which the Company did not pursue. Deferred financing costs, net of accumulated amortization are as follows: | |||||||||||||||||
(dollars in thousands) | June 30, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
(unaudited) | |||||||||||||||||
Deferred financing costs | $ | 9,973 | $ | 9,159 | |||||||||||||
Accumulated amortization | (3,071 | ) | (1,867 | ) | |||||||||||||
Deferred financing costs, net | $ | 6,902 | $ | 7,292 | |||||||||||||
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 $1.5 million and $1.0 million for the three months ended June 30, 2014 and 2013, respectively, and $2.8 million and $2.1 million for the six months ended June 30, 2014 and 2013, respectively. Deferred leasing costs, net of accumulated amortization are as follows: | |||||||||||||||||
(dollars in thousands) | June 30, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
(unaudited) | |||||||||||||||||
Deferred leasing costs | $ | 20,298 | $ | 17,374 | |||||||||||||
Accumulated amortization | (7,460 | ) | (5,516 | ) | |||||||||||||
Deferred leasing costs, net | $ | 12,838 | $ | 11,858 | |||||||||||||
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 $8.2 million and $7.9 million as of June 30, 2014 and December 31, 2013, respectively. Additionally, $1.2 million and $1.1 million of deferred income were amortized into revenue for the three months ended June 30, 2014 and 2013, respectively, and $2.4 million and $2.2 million for the six months ended June 30, 2014 and 2013, respectively. | |||||||||||||||||
Interest Rate Derivative Instruments – The Company utilizes derivatives to manage its interest rate exposure. During February 2012, the Company entered into interest rate swaps with a notional amount of $150 million which 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 the ineffective portions of qualifying hedges, the change in fair value is recorded through interest expense in the respective period. | |||||||||||||||||
Equity-based Compensation – All equity-based compensation is measured at fair value on the grant date or date of modification, as applicable, and recognized in earnings over the requisite service period. Depending upon the settlement terms of the awards, all or a portion of the fair value of equity-based awards may be presented as a liability or as equity in the consolidated balance sheets. Equity-based compensation costs are measured based upon their estimated fair value on the date of grant or modification. Equity-based compensation expense net of forfeited and repurchased awards was $1.1 million and $0.4 million for the three months ended June 30, 2014, and 2013, respectively, and $2.0 million and $0.8 million for the six months ended June 30, 2014 and 2013, respectively. | |||||||||||||||||
Rental Revenue – The Company, as a lessor, has retained substantially all of the risks and benefits of ownership and accounts for its leases as operating leases. For lease agreements that provide for scheduled rent increases, rental income is recognized on a straight-line basis over the non-cancellable term of the leases, which commences when control of the space has been provided to the customer. The amount of the straight-line rent receivable on the balance sheets included in rents and other receivables, net was $3.2 million and $2.9 million as of June 30, 2014 and December 31, 2013, 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 $1.5 million and $0.9 million as of June 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||
Capital Leases – The Company evaluates leased real estate to determine whether the lease should be classified as a capital or operating lease in accordance with U.S GAAP. | |||||||||||||||||
The Company periodically enters into capital leases for certain equipment. The outstanding liabilities for the capital leases were $4.4 million and $2.5 million as of June 30, 2014 and December 31, 2013, respectively. Depreciation related to the associated assets is included in depreciation and amortization expense in the Statements of Operations and Comprehensive Income (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. | |||||||||||||||||
Customer Concentrations – As of June 30, 2014, two of the Company’s customers represented 8.0% and 5.0%, respectively, of its total monthly rental revenue. No other customers exceeded 5% of total monthly rental revenue. | |||||||||||||||||
As of June 30, 2014, five of the Company’s customers exceeded 5% of total accounts receivable. In aggregate, these five customers accounted for 33.5% of total accounts receivable. None of these five customers individually exceeded 10% of total accounts receivable. | |||||||||||||||||
Income Taxes – The Company elected for one of its existing subsidiaries to be taxed as a taxable REIT subsidiary under the Internal Revenue Service real estate investment trust (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, 2013. The Company is not currently under examination by the Internal Revenue Service. | |||||||||||||||||
Fair Value Measurements – ASC Topic 820, Fair Value Measurements and Disclosures, 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 June 30, 2014 and December 31, 2013 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 June 30, 2014 and December 31, 2013 (dollars in thousands): | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
June 30, 2014 | |||||||||||||||||
Financial Liabilities: | |||||||||||||||||
Interest rate swap liability(1) | $ | 159 | $ | — | $ | 159 | $ | — | |||||||||
December 31, 2013 | |||||||||||||||||
Financial Liabilities: | |||||||||||||||||
Interest rate swap liability(1) | $ | 453 | $ | — | $ | 453 | $ | — | |||||||||
-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. | ||||||||||||||||
New Accounting Pronouncements | |||||||||||||||||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. The amendments in the ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. The new guidance narrows the definition of discontinued operations to disposals that represent a strategic shift in operations and requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income and expenses of discontinued operations. The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. The amendments in the ASU are effective for annual and interim reporting periods beginning on and after December 15, 2014. Early adoption is permitted. Adoption of this standard will currently have no effect on the Company’s financial statements. | |||||||||||||||||
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which supersedes the current revenue recognition requirements in ASC 606, Revenue Recognition. Under this new guidance, entities should recognize revenues to depict the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. This ASU also requires enhanced disclosures. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2016. Early adoption is not permitted. Retrospective and modified retrospective application is allowed. The Company is currently assessing the impact of this amendment on its Consolidated Financial Statements. |
Acquisition_of_Real_Estate
Acquisition of Real Estate | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Business Combinations [Abstract] | ' | ||||||
Acquisition of Real Estate | ' | ||||||
3. Acquisition of Real Estate | |||||||
On June 30, 2014 the Company completed the acquisition of a data center facility in New Jersey, from McGraw Hill Financial, Inc., for an aggregate cost of approximately $73.3 million. This facility is located on approximately 194 acres and consists of approximately 560,000 gross square feet, including approximately 58,000 square feet of raised floor, and 12 megawatts (“MW”) of gross power. This acquisition was funded with a draw on the unsecured revolving credit facility. Concurrently with acquiring this data center the Company entered into a 10 year lease for the facility’s 58,000 square feet of raised floor with Atos, an international information technology services company headquartered in Bezos, France. The lease includes a 15 year renewal at the option of Atos. | |||||||
The Company accounted for this acquisition in accordance with ASC 805, Business Combinations as a business combination. The preliminary purchase price allocation was based on an assessment of the fair value of the assets acquired, and excludes acquisition-related costs which in accordance with ASC 805 were expensed as incurred. | |||||||
The following table summarizes the consideration for the New Jersey facility and the preliminary allocation of the fair value of assets acquired as of June 30, 2014: | |||||||
New Jersey facility | Weighted average | ||||||
as of June 30, 2014 | useful life | ||||||
Buildings | 35,574 | 40 | |||||
Land | 17,976 | N/A | |||||
Acquired Intangibles | 16,114 | 10 | |||||
Deferred Costs | 3,335 | 10 | |||||
Other | 301 | 10 | |||||
Total purchase price | $ | 73,300 | |||||
The purchase price allocation remains provisional pending completion of further valuation analysis. Any further revisions will be recorded as adjustments to the final purchase price allocation. |
Real_Estate_Assets_and_Constru
Real Estate Assets and Construction in Progress | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Real Estate [Abstract] | ' | ||||||||||||||||
Real Estate Assets and Construction in Progress | ' | ||||||||||||||||
4. Real Estate Assets and Construction in Progress | |||||||||||||||||
The following is a summary of properties owned or leased by the Company as of June 30, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||
As of June 30, 2014: | |||||||||||||||||
Property Location | Land | Buildings and | Construction in | Total Cost | |||||||||||||
Improvements | Progress | ||||||||||||||||
Owned Properties | |||||||||||||||||
Suwanee, Georgia (Atlanta-Suwanee) | $ | 3,521 | $ | 131,966 | 2,468 | $ | 137,955 | ||||||||||
Atlanta, Georgia (Atlanta-Metro) | 15,396 | 348,547 | 4,800 | 368,743 | |||||||||||||
Santa Clara, California* | — | 88,214 | 953 | 89,167 | |||||||||||||
Richmond, Virginia | 2,180 | 112,762 | 72,266 | 187,208 | |||||||||||||
Sacramento, California | 1,481 | 53,079 | 5,411 | 59,971 | |||||||||||||
Princeton, New Jersey | 17,976 | 35,865 | — | 53,841 | |||||||||||||
Dallas, Texas | 5,808 | — | 96,928 | 102,736 | |||||||||||||
Miami, Florida | 1,777 | 27,656 | 62 | 29,495 | |||||||||||||
Lenexa, Kansas | 437 | 3,127 | — | 3,564 | |||||||||||||
Wichita, Kansas | — | 1,409 | — | 1,409 | |||||||||||||
48,576 | 802,625 | 182,888 | 1,034,089 | ||||||||||||||
Leased Properties | |||||||||||||||||
Jersey City, New Jersey | — | 25,653 | 628 | 26,281 | |||||||||||||
Overland Park, Kansas | — | 779 | — | 779 | |||||||||||||
— | 26,432 | 628 | 27,060 | ||||||||||||||
$ | 48,576 | $ | 829,057 | $ | 183,516 | $ | 1,061,149 | ||||||||||
* | Owned facility subject to long-term ground sublease. | ||||||||||||||||
As of December 31, 2013: | |||||||||||||||||
Property Location | Land | Buildings and | Construction in | Total Cost | |||||||||||||
Improvements | Progress | ||||||||||||||||
Owned Properties | |||||||||||||||||
Suwanee, Georgia (Atlanta-Suwanee) | $ | 3,521 | $ | 126,486 | 3,270 | $ | 133,277 | ||||||||||
Atlanta, Georgia (Atlanta-Metro) | 15,397 | 296,547 | 32,456 | 344,400 | |||||||||||||
Santa Clara, California* | — | 86,544 | 1,249 | 87,793 | |||||||||||||
Richmond, Virginia | 2,180 | 108,979 | 67,155 | 178,314 | |||||||||||||
Sacramento, California | 1,481 | 52,841 | 4,273 | 58,595 | |||||||||||||
Dallas, Texas | 5,808 | — | 38,501 | 44,309 | |||||||||||||
Miami, Florida | 1,777 | 27,553 | — | 29,330 | |||||||||||||
Lenexa, Kansas | 437 | 3,298 | — | 3,735 | |||||||||||||
Wichita, Kansas | — | 1,409 | — | 1,409 | |||||||||||||
30,601 | 703,657 | 146,904 | 881,162 | ||||||||||||||
Leased Properties | |||||||||||||||||
Jersey City, New Jersey | — | 23,811 | — | 23,811 | |||||||||||||
Overland Park, Kansas | — | 762 | 762 | ||||||||||||||
— | 24,573 | — | 24,573 | ||||||||||||||
$ | 30,601 | $ | 728,230 | $ | 146,904 | $ | 905,735 | ||||||||||
* | Owned facility subject to long-term ground sublease. |
Credit_Facilities_and_Mortgage
Credit Facilities and Mortgage Notes Payable | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Credit Facilities and Mortgage Notes Payable | ' | ||||||||
5. Credit Facilities and Mortgage Notes Payable | |||||||||
Below is a listing of our outstanding debt, excluding capital leases, as of June 30, 2014 and December 31, 2013 (in thousands): | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(Unaudited) | |||||||||
Unsecured Credit Facility | $ | 439,000 | $ | 256,500 | |||||
Richmond Credit Facility | 70,000 | 70,000 | |||||||
Atlanta-Metro Equipment Loan | 17,739 | 18,839 | |||||||
Total | $ | 526,739 | $ | 345,339 | |||||
(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 Company’s prior secured credit facility. This unsecured credit facility includes a term loan of $225 million, with a term of five years, and initially had a revolving credit facility of $350 million, with a term of four years, for an aggregate borrowing capacity of $575 million. In February 2014, the Company expanded the capacity of its unsecured revolving credit facility by $50 million, increasing the unsecured revolving credit facility capacity to $400 million. The credit facility may be increased up to $675 million, subject to certain conditions, including the consent of the administrative agent and obtaining necessary commitments. | |||||||||
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 June 30, 2014, the Company had an additional $3 million letter of credit outstanding. | |||||||||
Amounts outstanding under the Unsecured Credit Facility bear interest at a variable rate equal to, at our election, LIBOR or a base rate, plus a spread that will range, depending upon the Company’s leverage ratio, from 2.10% to 2.85% for LIBOR loans or 1.10% to 1.85% for base rate loans. As of June 30, 2014, the interest rate for amounts outstanding under the Unsecured Credit Facility was 2.25%. | |||||||||
In April 2014, the Company amended the Unsecured Credit Facility to allow the Company to prepay the term loan with proceeds of any new unsecured debt until the outstanding balance is equal to or less than $150 million, rather than prepay the entire $225 million of the term loan as was previously required. Pursuant to the terms of this amendment, on July 23, 2014, the Company repaid $75 million of the term loan portion of the Unsecured Credit Facility and repaid a portion of the outstanding balance of the revolving portion of the Unsecured Credit Facility with proceeds from the issuance of its 5.875% Senior Notes due 2022 as described in Note 13. | |||||||||
In August 2014, the Company increased the capacity of its unsecured revolving credit facility by $10 million to $410 million. | |||||||||
(b) 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. On June 30, 2014, the Company amended the Richmond Credit Agreement to, among other things, extend the maturity from December 18, 2015 to June 30, 2019, reduce the interest rate, increase the accordion feature. These modifications resulted in an additional reduction of credit commitments from $100 million to $80 million. The Richmond Credit Facility includes an accordion feature that allows the Company to increase the size of the credit facility up to $200 million. The Richmond Credit Facility requires the Company to comply with covenants similar to the Unsecured Credit Facility. | |||||||||
Amounts outstanding under the Richmond Credit Facility bear interest at a variable rate equal to, at our election, LIBOR or a base rate, plus a spread that will range, depending upon the Company’s leverage ratio, from 2.10% to 2.85% for LIBOR loans or 1.10% to 1.85% for base rate loans. As of June 30, 2014, the interest rate for amounts outstanding under the Richmond Credit Facility was 2.25%. | |||||||||
In August 2014, the Company increased the capacity of the Richmond Credit Facility by $40 million to $120 million. | |||||||||
(c) 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. | |||||||||
The annual remaining principal payment requirements as of June 30, 2014 per the contractual maturities and excluding extension options are as follows (in thousands): | |||||||||
2014 | $ | 1,139 | |||||||
2015 | 2,397 | ||||||||
2016 | 2,567 | ||||||||
2017 | 216,748 | ||||||||
2018 | 227,943 | ||||||||
Thereafter | 75,945 | ||||||||
Total | $ | 526,739 | |||||||
As of June 30, 2014, the Company was in compliance with all of its covenants. |
Interest_Rate_Derivative_Instr
Interest Rate Derivative Instruments | 6 Months Ended |
Jun. 30, 2014 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' |
Interest Rate Derivative Instruments | ' |
6. Interest Rate Derivative Instruments | |
The Company entered into interest rate swap agreements with a notional amount of $150 million on February 8, 2012, which are designated as cash flow hedges for hedge accounting. In addition, an interest rate cap of an additional $50 million was in place as of June 30, 2014 with a capped LIBOR rate of 3% through December 18, 2015. For derivative instruments that are accounted for as hedges, the change in fair value for the effective portions of qualifying hedges is recorded through other comprehensive income (loss). The total amount of unrealized gains recorded in other comprehensive income (loss) for the six months ended June 30, 2014 and 2013 was $0.2 million. | |
Interest expense related to payments on interest rate swaps for the three and six months ended June 30, 2014 was $0.2 million and $0.3 million, respectively, and $0.1 million and $0.2 million for the three and six months ended June 30, 2013, respectively. | |
As of June 30, 2014 and December 31, 2013 the value of the interest rate swaps was a liability of $0.2 million and $0.5 million, respectively. These values were determined using Level 2 inputs within the valuation hierarchy. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
7. Commitments and Contingencies | |
The Company is subject to various routine legal proceedings and other matters in the ordinary course of business. 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 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 court ruled against the Company on the claim relating to the enforceability of an early termination clause in a separate agreement. The Company has established an accrual associated with this matter which is recorded as a component of accrued liabilities. |
Partners_Capital_Equity_and_In
Partners' Capital, Equity and Incentive Compensation Plans | 6 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||
Partners' Capital, Equity and Incentive Compensation Plans | ' | ||||||||||||||||||||||||||||||||||||||||
8. Partners’ Capital, Equity and Incentive Compensation Plans | |||||||||||||||||||||||||||||||||||||||||
The Company has the full power and authority to do all the things necessary to conduct the business of the Operating Partnership. | |||||||||||||||||||||||||||||||||||||||||
As of June 30, 2014, the Operating Partnership had three classes of limited partnership units outstanding: Class A units of limited partnership interest (“Class A units”), Class RS LTIP units of limited partnership interest (“Class RS units”) and Class O LTIP units of limited partnership units (“Class O Units”). The Class A Units are redeemable at any time on or after one year following the later of the beginning of the first full calendar month following the completion of the IPO or the date of initial issuance. The Company may in its sole discretion elect to assume and satisfy the redemption amount with cash or its shares. Class RS units or Class O units were issued upon grants made under the QualityTech, LP 2010 Equity Incentive Plan (the “2010 Equity 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 of the Operating Partnership. | |||||||||||||||||||||||||||||||||||||||||
In connection with its IPO, the Company issued Class A common stock and Class B common stock. Class B common stock entitles the holder to 50 votes per share and was issued to enable the Company’s Chief Executive Officer to exchange 2% of his Operating Partnership units so he may have a vote proportionate to his economic interest in the Company. Also in connection with its IPO, the Company adopted the QTS Realty Trust, Inc. 2013 Equity Incentive plan (the “2013 Equity Incentive Plan”), which authorized 1.75 million shares to be issued under the plan, including options to purchase Class A common stock, restricted Class A common stock, Class O units, and Class RS units. | |||||||||||||||||||||||||||||||||||||||||
The following is a summary of award activity under the 2010 Equity Incentive Plan and 2013 Equity Incentive Plan and related information for the six months ended June 30, 2014: | |||||||||||||||||||||||||||||||||||||||||
2010 Equity Incentive Plan | 2013 Equity Incentive Plan | ||||||||||||||||||||||||||||||||||||||||
Number of | Weighted | Weighted | Number of | Weighted | Options | Weighted | Weighted | Restricted | Weighted | ||||||||||||||||||||||||||||||||
Class O units | average | average | Class RS units | average | average | average | Stock | average | |||||||||||||||||||||||||||||||||
exercise price | fair value | price | exercise price | fair value | price | ||||||||||||||||||||||||||||||||||||
Outstanding at December 31, 2013 | 1,622,747 | $ | 23.44 | $ | 3.84 | 173,750 | $ | 21.86 | 367,910 | $ | 21 | $ | 3.5 | 108,629 | $ | 21 | |||||||||||||||||||||||||
Granted | — | — | — | — | — | 230,539 | 25.51 | 4.94 | 44,000 | 25.51 | |||||||||||||||||||||||||||||||
Exercised | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Released from restriction | — | — | — | (81,750 | ) | 25 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Cancelled/Expired | (34,395 | ) | $ | 24.83 | 7.93 | — | — | (5,000 | ) | $ | 21 | 3.52 | — | — | |||||||||||||||||||||||||||
Outstanding at June 30, 2014 | 1,588,352 | $ | 24.49 | $ | 4.09 | 92,000 | $ | 23.78 | 593,449 | $ | 22.75 | $ | 4.12 | 152,629 | $ | 22.3 | |||||||||||||||||||||||||
The assumptions and fair values for restricted stock and options to purchase shares of Class A common stock granted for the six months ended June 30, 2014 is included in the following table on a per unit basis. Class O units and options to purchase shares of Class A common stock were valued using the Black-Scholes model. | |||||||||||||||||||||||||||||||||||||||||
Three and | |||||||||||||||||||||||||||||||||||||||||
six months ended | |||||||||||||||||||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||||||||||||||||||
Fair value of restricted stock granted | $25.51 | ||||||||||||||||||||||||||||||||||||||||
Fair value of options granted | $4.94-$5.08 | ||||||||||||||||||||||||||||||||||||||||
Expected term (years) | 5.5-6.1 | ||||||||||||||||||||||||||||||||||||||||
Expected volatility | 33 | % | |||||||||||||||||||||||||||||||||||||||
Expected dividend yield | 4.55 | % | |||||||||||||||||||||||||||||||||||||||
Expected risk-free interest rates | 1.7-1.9 | % | |||||||||||||||||||||||||||||||||||||||
The following table summarizes information about awards outstanding as of June 30, 2014. | |||||||||||||||||||||||||||||||||||||||||
Operating Partnership Awards Outstanding | |||||||||||||||||||||||||||||||||||||||||
Exercise prices | Awards | Weighted average | |||||||||||||||||||||||||||||||||||||||
outstanding | remaining | ||||||||||||||||||||||||||||||||||||||||
vesting period | |||||||||||||||||||||||||||||||||||||||||
(years) | |||||||||||||||||||||||||||||||||||||||||
Class RS Units | $ | — | 92,000 | 2 | |||||||||||||||||||||||||||||||||||||
Class O Units | $ | 20 - 25 | 1,588,352 | 2 | |||||||||||||||||||||||||||||||||||||
Total Operating Partnership awards outstanding | 1,680,352 | ||||||||||||||||||||||||||||||||||||||||
QTS Realty Trust, Inc. Awards Outstanding | |||||||||||||||||||||||||||||||||||||||||
Exercise prices | Awards | Weighted average | |||||||||||||||||||||||||||||||||||||||
outstanding | remaining | ||||||||||||||||||||||||||||||||||||||||
vesting period | |||||||||||||||||||||||||||||||||||||||||
(years) | |||||||||||||||||||||||||||||||||||||||||
Restricted stock | $ | — | 152,629 | 3 | |||||||||||||||||||||||||||||||||||||
Options to purchase Class A common stock | $ | 21 - 25.51 | 593,449 | 2 | |||||||||||||||||||||||||||||||||||||
Total QTS Realty Trust, Inc awards outstanding | 746,078 | ||||||||||||||||||||||||||||||||||||||||
All nonvested LTIP unit awards are valued as of the grant date and generally vest ratably over a defined service period. Certain nonvested LTIP unit awards vest on the earlier of achievement by the Company of various performance goals or specified dates in 2015 and 2016. As of June 30, 2014 there were 0.9 million, 0.1 million, 0.2 million and 0.6 million nonvested Class O units, Class RS units, restricted Class A common stock and options to purchase Class A common stock outstanding, respectively. As of June 30, 2014 the Company had $8.8 million of unrecognized equity-based compensation expense which will be recognized over the remaining vesting period of up to 4 years. The total intrinsic value of the awards outstanding at June 30, 2014 was $17.3 million. | |||||||||||||||||||||||||||||||||||||||||
On January 7, 2014 the Company paid a dividend to common stockholders of $0.24 per common share and the Operating Partnership made a distribution to its partners of $0.24 per unit in an aggregate amount of $9.0 million. On April 8, 2014, the Company paid its regular quarterly cash dividend of $0.29 per common share and the Operating Partnership made a distribution to its partners of $0.29 per unit in an aggregate amount of $10.7 million. Additionally, a distribution of approximately $200,000 was made to Class O LTIP holders during the three months ended June 30, 2014 to cover federal, state and local taxes on the allocated taxable income of the O LTIP’s. | |||||||||||||||||||||||||||||||||||||||||
On May 6, 2014, the Company’s Board of Directors authorized payment of a regular quarterly cash dividend of $0.29 per common share, which was subsequently paid on July 8, 2014, to stockholders of record as of the close of business on June 20, 2014. |
Related_Party_Transactions
Related Party Transactions | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Related Party Transactions | ' | ||||||||||||||||
9. Related Party Transactions | |||||||||||||||||
The Company periodically executes transactions with entities affiliated with its Chairman and Chief Executive Officer. Such transactions include automobile, furniture and equipment purchases as well as building operating lease payments and 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 six months ended June 30, 2014 and 2013 are outlined below (in thousands): | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Tax, utility, insurance and other reimbursement | $ | 115 | $ | 10 | 167 | 103 | |||||||||||
Rent expense | 257 | 305 | 519 | 448 | |||||||||||||
Capital assets acquired | 27 | 15 | 74 | 15 | |||||||||||||
Total | $ | 399 | $ | 330 | 760 | 566 | |||||||||||
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 either of the three and six months ended June 30, 2013. This activity was discontinued by the Company during the second quarter of 2013. |
Noncontrolling_Interest
Noncontrolling Interest | 6 Months Ended |
Jun. 30, 2014 | |
Noncontrolling Interest [Abstract] | ' |
Noncontrolling Interest | ' |
10. Noncontrolling Interest | |
Concurrently with the completion of the IPO, the Company consummated a series of transactions pursuant to which the Company became the sole general partner and majority owner of QualityTech, LP, which then became its operating partnership. The previous owners of QualityTech, LP retained 21.2% ownership of the Operating Partnership. | |
Commencing at the beginning of the first calendar month following the first anniversary of the completion of the IPO, at the election of the holders of the noncontrolling interest, the Class A units will be redeemable for cash or, at the election of the Company common stock of the Company on a one-for-one basis. |
Earnings_per_share
Earnings per share | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings per share | ' | ||||||||
11. Earnings per share | |||||||||
Basic income (loss) per share is calculated by dividing the net income (loss) attributable to common shares by the weighted average number of common shares outstanding during the period. Diluted income (loss) per share adjusts basic income (loss) per share for the effects of potentially dilutive common shares. | |||||||||
Three months ended | Six months ended | ||||||||
(in thousands, except per share data) | June 30, 2014 | June 30, 2014 | |||||||
Net income available to common stockholders | $ | 3,090 | $ | 7,288 | |||||
Weighted average shares outstanding—basic | 29,017 | 29,001 | |||||||
Net income per share—basic | $ | 0.11 | $ | 0.25 | |||||
Net income | $ | 3,921 | $ | 9,249 | |||||
Weighted average shares outstanding— | 37,010 | 36,934 | |||||||
diluted (1) | |||||||||
Net income per share—diluted | $ | 0.11 | $ | 0.25 | |||||
-1 | Includes 7,997 and 7,873 units of the Operating Partnership as of the three months and six months ended June 30, 2014, respectively. |
Customer_Leases_as_Lessor
Customer Leases, as Lessor | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Leases [Abstract] | ' | ||||
Customer Leases, as Lessor | ' | ||||
12. Customer Leases, as Lessor | |||||
Future minimum lease payments to be received under non-cancelable operating customer leases (exclusive of recoveries of operating costs from customers) are as follows for the years ending December 31 (in thousands): | |||||
Period Ending December 31, | |||||
2014 (July—December) | $ | 93,528 | |||
2015 | 168,511 | ||||
2016 | 136,426 | ||||
2017 | 102,526 | ||||
2018 | 78,178 | ||||
Thereafter | 164,711 | ||||
Total | $ | 743,880 | |||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2014 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value of Financial Instruments | ' |
13. Fair Value of Financial Instruments | |
ASC Topic 825 requires disclosure of fair value information about financial instruments, whether or not recognized in the consolidated balance sheets, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based upon the application of discount rates to estimated future cash flows based upon market yields or by using other valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair value. Accordingly, fair values are not necessarily indicative of the amounts the Company could realize on disposition of the financial instruments. The use of different market assumptions and/or estimation methodologies may have a material effect on estimated fair value amounts. | |
Short-term instruments: The carrying amounts of cash and cash equivalents, 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 based on borrowing rates that the Company believes it could obtain with similar terms and maturities. At June 30, 2014, the fair value of Atlanta-Metro Equipment Loan, based on current market rates, was approximately $17.1 million. The Company’s Unsecured Credit Facility and Richmond Credit Facility did not have interest rates which were materially different than current market conditions and therefore, the fair value of each of the credit facilities 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. | |
Preliminary Purchase Price allocation of the New Jersey acquisition – as disclosed in Note 3, the Company acquired a New Jersey facility on June 30, 2014. The Company is valuing the assets acquired using Level 3 inputs. |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
14. Subsequent Events | |
On July 8, 2014, the Company completed the acquisition of the former Sun Times Press facility in downtown Chicago, Illinois, for approximately $18 million. The facility is approximately 317,000 gross square feet with capacity for approximately 134,000 square feet of raised floor and 24 MW of power. The Company intends to redevelop the facility which will increase its size to approximately 400,000 gross square feet with raised floor capacity of approximately 215,000 square feet and 37MW of power. The facility also has access to long haul fiber and is situated on 30 acres of developable land. This acquisition was funded with a draw on the Unsecured Credit Facility. In accordance with ASC 805, Business Combinations, the Company will account for this acquisition as an asset acquisition. | |
On July 23, 2014, the Operating Partnership and QTS Finance Corporation, a subsidiary of the Operating Partnership formed solely for the purpose of facilitating the offering of the notes described below (collectively, the “Issuers”), issued $300 million aggregate principal amount of 5.875% Senior Notes due 2022 (“the Notes”). The Notes have an interest rate of 5.875% per annum and were issued at a price equal to 99.211% of their face value. The proceeds from the offering were used to repay amounts outstanding under the Unsecured Credit Facility, including $75 million outstanding under the unsecured term loan. The Notes are unconditionally guaranteed, jointly and severally, on a senior unsecured basis by all of the Operating Partnership’s existing and future subsidiaries (other than foreign subsidiaries and receivables entities) that guarantee any indebtedness of the Company, the Issuers or any other subsidiary guarantor. The Company will not initially guarantee the Notes and will not be required to guarantee the Notes except under certain circumstances. The offering was conducted pursuant to Rule 144A of the Securities Act of 1933, as amended, and the Notes were issued pursuant to an indenture, dated as of July 23, 2014, among the Operating Partnership, QTS Finance Corporation, the Company, the guarantors named therein, and Deutsche Bank Trust Company Americas, as trustee (the “Indenture”). | |
On July 8, 2014, the Company paid its regular quarterly cash dividend of $0.29 per common share to stockholders and operating partnership unit holders of record as of the close of business on June 20, 2014. | |
In August, 2014, the Company’s Board of Directors authorized payment of a regular quarterly cash dividend of $0.29 per common share, payable on October 7, 2014, to stockholders and operating partnership unit holders of record as of the close of business on September 19, 2014. | |
In August 2014, the Company expanded the capacity of its unsecured revolving credit facility by $10 million, expanding the unsecured revolving credit capacity to $410 million, and the Company expanded the Richmond Credit Facility by $40 million, expanding its capacity to $120 million. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Basis of Presentation | ' | ||||||||||||||||
Basis of Presentation – The accompanying financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. | |||||||||||||||||
Use of Estimates | ' | ||||||||||||||||
Use of Estimates – The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of fixed assets, allowances for doubtful accounts and deferred tax assets and the valuation of derivatives, real estate assets, acquired intangible assets and certain accruals. | |||||||||||||||||
Principles of Consolidation | ' | ||||||||||||||||
Principles of Consolidation – The consolidated financial statements include the accounts of QTS Realty Trust, Inc. and its majority-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 lives 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 $10.7 million and $9.0 million for the three months ended June 30, 2014 and 2013, respectively, and $20.9 million and $17.5 million for the six months ended June 30, 2014 and 2013, respectively. The Company capitalizes certain development costs, including internal costs incurred in connection with development. The capitalization of costs during the construction period (including interest and related loan fees, property taxes and other direct and indirect costs) begins when development efforts commence and ends when the asset is ready for its intended use. Capitalization of such costs, excluding interest, aggregated to $2.5 million and $2.2 for the three months ended June 30, 2014 and 2013, respectively, and $4.7 million and $3.9 million for the six months ended June 30, 2014 and 2013, respectively. Interest is capitalized during the period of development by first applying the Company’s actual borrowing rate on the related asset and second, to the extent necessary, by applying the Company’s weighted average effective borrowing rate to the actual development and other costs expended during the construction period. Interest is capitalized until the property is ready for its intended use. Interest costs capitalized totaled $1.8 million and $1.1 million for the three months ended June 30, 2014 and 2013, respectively, and $3.4 million and $2.1 million for the six months ended June 30, 2014 and 2013, respectively. | |||||||||||||||||
Acquisition of Real Estate | ' | ||||||||||||||||
Acquisition of Real Estate – Acquisitions of real estate are either accounted for as asset acquisitions or business combinations depending on facts and circumstances. Purchase accounting is applied to the assets and liabilities related to all real estate investments acquired in accordance 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. | |||||||||||||||||
Acquired in-place leases are amortized as amortization expense on a straight-line basis over the remaining life of the underlying leases. Amortization of acquired in place lease costs, including write-offs for terminated leases totaled $0.6 million and $0.4 million for the three months ended June 30, 2014 and 2013, respectively, and $1.3 million and $1.0 million for the six months ended June 30, 2014 and 2013, respectively. | |||||||||||||||||
Acquired customer relationships are amortized as amortization expense on a straight-line basis over the expected life of the customer relationship. Amortization of acquired customer relationships totaled $0.3 million and $0.4 million for the three months ended June 30, 2014 and 2013, respectively, and $0.7 million and $0.8 million for the six months ended June 30, 2014 and 2013, respectively. | |||||||||||||||||
See Note 3 for discussion of the preliminary purchase price allocation for the New Jersey facility that the Company acquired on June 30, 2014. | |||||||||||||||||
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 for the three and six months ended June 30, 2014 and 2013, respectively. | |||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||
Cash and Cash Equivalents – The Company considers all demand deposits and money market accounts purchased with a maturity date of three months or less at the date of purchase to be cash equivalents. The Company’s account balances at one or more institutions periodically exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance coverage and, as a result, there is concentration of credit risk related to amounts on deposit in excess of FDIC coverage. The Company mitigates this risk by depositing a majority of its funds with several major financial institutions. The Company also has not experienced any losses and, therefore, does not believe that the risk is significant. | |||||||||||||||||
Deferred Costs | ' | ||||||||||||||||
Deferred Costs – Deferred costs, net, on the Company’s balance sheets include both financing costs and leasing costs. | |||||||||||||||||
Deferred financing costs represent fees and other costs incurred in connection with obtaining debt and are amortized over the term of the loan and are included in interest expense. Amortization of the deferred financing costs was $0.6 million and $0.7 million for the three months ended June 30, 2014 and 2013, respectively, and $1.2 million and $1.6 million for the six months ended June 30, 2014 and 2013, respectively. During the three months ended June 30, 2014, the Company wrote off unamortized financing costs of $0.1 million in connection with the modification of its credit facility that is secured by the Richmond data center. During the three months ended June 30, 2013, the Company wrote off unamortized financing costs of $2.0 million in connection with the restructuring of its unsecured credit facility. During the six months ended June 30, 2013, in addition to the aforementioned $2.0 million write off, the Company wrote off unamortized financing costs of $1.3 million in connection with an asset securitization which the Company did not pursue. Deferred financing costs, net of accumulated amortization are as follows: | |||||||||||||||||
(dollars in thousands) | June 30, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
(unaudited) | |||||||||||||||||
Deferred financing costs | $ | 9,973 | $ | 9,159 | |||||||||||||
Accumulated amortization | (3,071 | ) | (1,867 | ) | |||||||||||||
Deferred financing costs, net | $ | 6,902 | $ | 7,292 | |||||||||||||
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 $1.5 million and $1.0 million for the three months ended June 30, 2014 and 2013, respectively, and $2.8 million and $2.1 million for the six months ended June 30, 2014 and 2013, respectively. Deferred leasing costs, net of accumulated amortization are as follows: | |||||||||||||||||
(dollars in thousands) | June 30, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
(unaudited) | |||||||||||||||||
Deferred leasing costs | $ | 20,298 | $ | 17,374 | |||||||||||||
Accumulated amortization | (7,460 | ) | (5,516 | ) | |||||||||||||
Deferred leasing costs, net | $ | 12,838 | $ | 11,858 | |||||||||||||
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 $8.2 million and $7.9 million as of June 30, 2014 and December 31, 2013, respectively. Additionally, $1.2 million and $1.1 million of deferred income were amortized into revenue for the three months ended June 30, 2014 and 2013, respectively, and $2.4 million and $2.2 million for the six months ended June 30, 2014 and 2013, respectively. | |||||||||||||||||
Interest Rate Derivative Instruments | ' | ||||||||||||||||
Interest Rate Derivative Instruments – The Company utilizes derivatives to manage its interest rate exposure. During February 2012, the Company entered into interest rate swaps with a notional amount of $150 million which 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 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 – All equity-based compensation is measured at fair value on the grant date or date of modification, as applicable, and recognized in earnings over the requisite service period. Depending upon the settlement terms of the awards, all or a portion of the fair value of equity-based awards may be presented as a liability or as equity in the consolidated balance sheets. Equity-based compensation costs are measured based upon their estimated fair value on the date of grant or modification. Equity-based compensation expense net of forfeited and repurchased awards was $1.1 million and $0.4 million for the three months ended June 30, 2014, and 2013, respectively, and $2.0 million and $0.8 million for the six months ended June 30, 2014 and 2013, respectively. | |||||||||||||||||
Rental Revenue | ' | ||||||||||||||||
Rental Revenue – The Company, as a lessor, has retained substantially all of the risks and benefits of ownership and accounts for its leases as operating leases. For lease agreements that provide for scheduled rent increases, rental income is recognized on a straight-line basis over the non-cancellable term of the leases, which commences when control of the space has been provided to the customer. The amount of the straight-line rent receivable on the balance sheets included in rents and other receivables, net was $3.2 million and $2.9 million as of June 30, 2014 and December 31, 2013, 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 $1.5 million and $0.9 million as of June 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||
Capital Leases | ' | ||||||||||||||||
Capital Leases – The Company evaluates leased real estate to determine whether the lease should be classified as a capital or operating lease in accordance with U.S GAAP. | |||||||||||||||||
The Company periodically enters into capital leases for certain equipment. The outstanding liabilities for the capital leases were $4.4 million and $2.5 million as of June 30, 2014 and December 31, 2013, respectively. Depreciation related to the associated assets is included in depreciation and amortization expense in the Statements of Operations and Comprehensive Income (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. | |||||||||||||||||
Customer Concentrations | ' | ||||||||||||||||
Customer Concentrations – As of June 30, 2014, two of the Company’s customers represented 8.0% and 5.0%, respectively, of its total monthly rental revenue. No other customers exceeded 5% of total monthly rental revenue. | |||||||||||||||||
As of June 30, 2014, five of the Company’s customers exceeded 5% of total accounts receivable. In aggregate, these five customers accounted for 33.5% of total accounts receivable. None of these five customers individually exceeded 10% of total accounts receivable. | |||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Income Taxes – The Company elected for one of its existing subsidiaries to be taxed as a taxable REIT subsidiary under the Internal Revenue Service real estate investment trust (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, 2013. The Company is not currently under examination by the Internal Revenue Service. | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Fair Value Measurements – ASC Topic 820, Fair Value Measurements and Disclosures, 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 June 30, 2014 and December 31, 2013 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 June 30, 2014 and December 31, 2013 (dollars in thousands): | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
June 30, 2014 | |||||||||||||||||
Financial Liabilities: | |||||||||||||||||
Interest rate swap liability(1) | $ | 159 | $ | — | $ | 159 | $ | — | |||||||||
December 31, 2013 | |||||||||||||||||
Financial Liabilities: | |||||||||||||||||
Interest rate swap liability(1) | $ | 453 | $ | — | $ | 453 | $ | — | |||||||||
-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. | ||||||||||||||||
New Accounting Pronouncement | ' | ||||||||||||||||
New Accounting Pronouncements | |||||||||||||||||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. The amendments in the ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. The new guidance narrows the definition of discontinued operations to disposals that represent a strategic shift in operations and requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income and expenses of discontinued operations. The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. The amendments in the ASU are effective for annual and interim reporting periods beginning on and after December 15, 2014. Early adoption is permitted. Adoption of this standard will currently have no effect on the Company’s financial statements. | |||||||||||||||||
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which supersedes the current revenue recognition requirements in ASC 606, Revenue Recognition. Under this new guidance, entities should recognize revenues to depict the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. This ASU also requires enhanced disclosures. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2016. Early adoption is not permitted. Retrospective and modified retrospective application is allowed. The Company is currently assessing the impact of this amendment on its Consolidated Financial Statements. | |||||||||||||||||
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 based on borrowing rates that the Company believes it could obtain with similar terms and maturities. At June 30, 2014, the fair value of Atlanta-Metro Equipment Loan, based on current market rates, was approximately $17.1 million. The Company’s Unsecured Credit Facility and Richmond Credit Facility did not have interest rates which were materially different than current market conditions and therefore, the fair value of each of the credit facilities 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) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Deferred Financing Costs, Net of Accumulated Amortization | ' | ||||||||||||||||
Deferred financing costs, net of accumulated amortization are as follows: | |||||||||||||||||
(dollars in thousands) | June 30, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
(unaudited) | |||||||||||||||||
Deferred financing costs | $ | 9,973 | $ | 9,159 | |||||||||||||
Accumulated amortization | (3,071 | ) | (1,867 | ) | |||||||||||||
Deferred financing costs, net | $ | 6,902 | $ | 7,292 | |||||||||||||
Deferred Leasing Costs, Net of Accumulated Amortization | ' | ||||||||||||||||
Deferred leasing costs, net of accumulated amortization are as follows: | |||||||||||||||||
(dollars in thousands) | June 30, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
(unaudited) | |||||||||||||||||
Deferred leasing costs | $ | 20,298 | $ | 17,374 | |||||||||||||
Accumulated amortization | (7,460 | ) | (5,516 | ) | |||||||||||||
Deferred leasing costs, net | $ | 12,838 | $ | 11,858 | |||||||||||||
Financial Instruments Held at Fair Value | ' | ||||||||||||||||
The Company’s financial instruments held at fair value are presented below as of June 30, 2014 and December 31, 2013 (dollars in thousands): | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
June 30, 2014 | |||||||||||||||||
Financial Liabilities: | |||||||||||||||||
Interest rate swap liability(1) | $ | 159 | $ | — | $ | 159 | $ | — | |||||||||
December 31, 2013 | |||||||||||||||||
Financial Liabilities: | |||||||||||||||||
Interest rate swap liability(1) | $ | 453 | $ | — | $ | 453 | $ | — | |||||||||
-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. |
Acquisition_of_Real_Estate_Tab
Acquisition of Real Estate (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Business Combinations [Abstract] | ' | ||||||
Consideration for the New Jersey Facility and the Preliminary Allocation of the Fair Value of Assets Acquired | ' | ||||||
The following table summarizes the consideration for the New Jersey facility and the preliminary allocation of the fair value of assets acquired as of June 30, 2014: | |||||||
New Jersey facility | Weighted average | ||||||
as of June 30, 2014 | useful life | ||||||
Buildings | 35,574 | 40 | |||||
Land | 17,976 | N/A | |||||
Acquired Intangibles | 16,114 | 10 | |||||
Deferred Costs | 3,335 | 10 | |||||
Other | 301 | 10 | |||||
Total purchase price | $ | 73,300 | |||||
Real_Estate_Assets_and_Constru1
Real Estate Assets and Construction in Progress (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Real Estate [Abstract] | ' | ||||||||||||||||
Summary of Properties Owned or Leased by the Company | ' | ||||||||||||||||
The following is a summary of properties owned or leased by the Company as of June 30, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||
As of June 30, 2014: | |||||||||||||||||
Property Location | Land | Buildings and | Construction in | Total Cost | |||||||||||||
Improvements | Progress | ||||||||||||||||
Owned Properties | |||||||||||||||||
Suwanee, Georgia (Atlanta-Suwanee) | $ | 3,521 | $ | 131,966 | 2,468 | $ | 137,955 | ||||||||||
Atlanta, Georgia (Atlanta-Metro) | 15,396 | 348,547 | 4,800 | 368,743 | |||||||||||||
Santa Clara, California* | — | 88,214 | 953 | 89,167 | |||||||||||||
Richmond, Virginia | 2,180 | 112,762 | 72,266 | 187,208 | |||||||||||||
Sacramento, California | 1,481 | 53,079 | 5,411 | 59,971 | |||||||||||||
Princeton, New Jersey | 17,976 | 35,865 | — | 53,841 | |||||||||||||
Dallas, Texas | 5,808 | — | 96,928 | 102,736 | |||||||||||||
Miami, Florida | 1,777 | 27,656 | 62 | 29,495 | |||||||||||||
Lenexa, Kansas | 437 | 3,127 | — | 3,564 | |||||||||||||
Wichita, Kansas | — | 1,409 | — | 1,409 | |||||||||||||
48,576 | 802,625 | 182,888 | 1,034,089 | ||||||||||||||
Leased Properties | |||||||||||||||||
Jersey City, New Jersey | — | 25,653 | 628 | 26,281 | |||||||||||||
Overland Park, Kansas | — | 779 | — | 779 | |||||||||||||
— | 26,432 | 628 | 27,060 | ||||||||||||||
$ | 48,576 | $ | 829,057 | $ | 183,516 | $ | 1,061,149 | ||||||||||
* | Owned facility subject to long-term ground sublease. | ||||||||||||||||
As of December 31, 2013: | |||||||||||||||||
Property Location | Land | Buildings and | Construction in | Total Cost | |||||||||||||
Improvements | Progress | ||||||||||||||||
Owned Properties | |||||||||||||||||
Suwanee, Georgia (Atlanta-Suwanee) | $ | 3,521 | $ | 126,486 | 3,270 | $ | 133,277 | ||||||||||
Atlanta, Georgia (Atlanta-Metro) | 15,397 | 296,547 | 32,456 | 344,400 | |||||||||||||
Santa Clara, California* | — | 86,544 | 1,249 | 87,793 | |||||||||||||
Richmond, Virginia | 2,180 | 108,979 | 67,155 | 178,314 | |||||||||||||
Sacramento, California | 1,481 | 52,841 | 4,273 | 58,595 | |||||||||||||
Dallas, Texas | 5,808 | — | 38,501 | 44,309 | |||||||||||||
Miami, Florida | 1,777 | 27,553 | — | 29,330 | |||||||||||||
Lenexa, Kansas | 437 | 3,298 | — | 3,735 | |||||||||||||
Wichita, Kansas | — | 1,409 | — | 1,409 | |||||||||||||
30,601 | 703,657 | 146,904 | 881,162 | ||||||||||||||
Leased Properties | |||||||||||||||||
Jersey City, New Jersey | — | 23,811 | — | 23,811 | |||||||||||||
Overland Park, Kansas | — | 762 | 762 | ||||||||||||||
— | 24,573 | — | 24,573 | ||||||||||||||
$ | 30,601 | $ | 728,230 | $ | 146,904 | $ | 905,735 | ||||||||||
* | Owned facility subject to long-term ground sublease. |
Credit_Facilities_and_Mortgage1
Credit Facilities and Mortgage Notes Payable (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Outstanding Debt Excluding Capital Leases | ' | ||||||||
Below is a listing of our outstanding debt, excluding capital leases, as of June 30, 2014 and December 31, 2013 (in thousands): | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(Unaudited) | |||||||||
Unsecured Credit Facility | $ | 439,000 | $ | 256,500 | |||||
Richmond Credit Facility | 70,000 | 70,000 | |||||||
Atlanta-Metro Equipment Loan | 17,739 | 18,839 | |||||||
Total | $ | 526,739 | $ | 345,339 | |||||
Annual Remaining Principal Payment | ' | ||||||||
The annual remaining principal payment requirements as of June 30, 2014 per the contractual maturities and excluding extension options are as follows (in thousands): | |||||||||
2014 | $ | 1,139 | |||||||
2015 | 2,397 | ||||||||
2016 | 2,567 | ||||||||
2017 | 216,748 | ||||||||
2018 | 227,943 | ||||||||
Thereafter | 75,945 | ||||||||
Total | $ | 526,739 | |||||||
Partners_Capital_Equity_and_In1
Partners' Capital, Equity and Incentive Compensation Plans (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||
Summary of Award Activity Under 2010 Equity Incentive Plan and 2013 Equity Incentive Plan and Related Information | ' | ||||||||||||||||||||||||||||||||||||||||
The following is a summary of award activity under the 2010 Equity Incentive Plan and 2013 Equity Incentive Plan and related information for the six months ended June 30, 2014: | |||||||||||||||||||||||||||||||||||||||||
2010 Equity Incentive Plan | 2013 Equity Incentive Plan | ||||||||||||||||||||||||||||||||||||||||
Number of | Weighted | Weighted | Number of | Weighted | Options | Weighted | Weighted | Restricted | Weighted | ||||||||||||||||||||||||||||||||
Class O units | average | average | Class RS units | average | average | average | Stock | average | |||||||||||||||||||||||||||||||||
exercise price | fair value | price | exercise price | fair value | price | ||||||||||||||||||||||||||||||||||||
Outstanding at December 31, 2013 | 1,622,747 | $ | 23.44 | $ | 3.84 | 173,750 | $ | 21.86 | 367,910 | $ | 21 | $ | 3.5 | 108,629 | $ | 21 | |||||||||||||||||||||||||
Granted | — | — | — | — | — | 230,539 | 25.51 | 4.94 | 44,000 | 25.51 | |||||||||||||||||||||||||||||||
Exercised | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Released from restriction | — | — | — | (81,750 | ) | 25 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Cancelled/Expired | (34,395 | ) | $ | 24.83 | 7.93 | — | — | (5,000 | ) | $ | 21 | 3.52 | — | — | |||||||||||||||||||||||||||
Outstanding at June 30, 2014 | 1,588,352 | $ | 24.49 | $ | 4.09 | 92,000 | $ | 23.78 | 593,449 | $ | 22.75 | $ | 4.12 | 152,629 | $ | 22.3 | |||||||||||||||||||||||||
Summary of Assumptions and Fair Values for Restricted Stock and Options to Purchase Shares of Class A Common Stock Granted | ' | ||||||||||||||||||||||||||||||||||||||||
The assumptions and fair values for restricted stock and options to purchase shares of Class A common stock granted for the six months ended June 30, 2014 is included in the following table on a per unit basis. Class O units and options to purchase shares of Class A common stock were valued using the Black-Scholes model. | |||||||||||||||||||||||||||||||||||||||||
Three and | |||||||||||||||||||||||||||||||||||||||||
six months ended | |||||||||||||||||||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||||||||||||||||||
Fair value of restricted stock granted | $25.51 | ||||||||||||||||||||||||||||||||||||||||
Fair value of options granted | $4.94-$5.08 | ||||||||||||||||||||||||||||||||||||||||
Expected term (years) | 5.5-6.1 | ||||||||||||||||||||||||||||||||||||||||
Expected volatility | 33 | % | |||||||||||||||||||||||||||||||||||||||
Expected dividend yield | 4.55 | % | |||||||||||||||||||||||||||||||||||||||
Expected risk-free interest rates | 1.7-1.9 | % | |||||||||||||||||||||||||||||||||||||||
Summary of Information About Awards Outstanding | ' | ||||||||||||||||||||||||||||||||||||||||
The following table summarizes information about awards outstanding as of June 30, 2014. | |||||||||||||||||||||||||||||||||||||||||
Operating Partnership Awards Outstanding | |||||||||||||||||||||||||||||||||||||||||
Exercise prices | Awards | Weighted average | |||||||||||||||||||||||||||||||||||||||
outstanding | remaining | ||||||||||||||||||||||||||||||||||||||||
vesting period | |||||||||||||||||||||||||||||||||||||||||
(years) | |||||||||||||||||||||||||||||||||||||||||
Class RS Units | $ | — | 92,000 | 2 | |||||||||||||||||||||||||||||||||||||
Class O Units | $ | 20 - 25 | 1,588,352 | 2 | |||||||||||||||||||||||||||||||||||||
Total Operating Partnership awards outstanding | 1,680,352 | ||||||||||||||||||||||||||||||||||||||||
QTS Realty Trust, Inc. Awards Outstanding | |||||||||||||||||||||||||||||||||||||||||
Exercise prices | Awards | Weighted average | |||||||||||||||||||||||||||||||||||||||
outstanding | remaining | ||||||||||||||||||||||||||||||||||||||||
vesting period | |||||||||||||||||||||||||||||||||||||||||
(years) | |||||||||||||||||||||||||||||||||||||||||
Restricted stock | $ | — | 152,629 | 3 | |||||||||||||||||||||||||||||||||||||
Options to purchase Class A common stock | $ | 21 - 25.51 | 593,449 | 2 | |||||||||||||||||||||||||||||||||||||
Total QTS Realty Trust, Inc awards outstanding | 746,078 | ||||||||||||||||||||||||||||||||||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Summary of Related Party Transactions | ' | ||||||||||||||||
The transactions which occurred during the three and six months ended June 30, 2014 and 2013 are outlined below (in thousands): | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Tax, utility, insurance and other reimbursement | $ | 115 | $ | 10 | 167 | 103 | |||||||||||
Rent expense | 257 | 305 | 519 | 448 | |||||||||||||
Capital assets acquired | 27 | 15 | 74 | 15 | |||||||||||||
Total | $ | 399 | $ | 330 | 760 | 566 | |||||||||||
Earnings_per_share_Tables
Earnings per share (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Summary of Basic and Diluted Earnings Per Share | ' | ||||||||
Three months ended | Six months ended | ||||||||
(in thousands, except per share data) | June 30, 2014 | June 30, 2014 | |||||||
Net income available to common stockholders | $ | 3,090 | $ | 7,288 | |||||
Weighted average shares outstanding—basic | 29,017 | 29,001 | |||||||
Net income per share—basic | $ | 0.11 | $ | 0.25 | |||||
Net income | $ | 3,921 | $ | 9,249 | |||||
Weighted average shares outstanding— | 37,010 | 36,934 | |||||||
diluted (1) | |||||||||
Net income per share—diluted | $ | 0.11 | $ | 0.25 | |||||
-1 | Includes 7,997 and 7,873 units of the Operating Partnership as of the three months and six months ended June 30, 2014, respectively. |
Customer_Leases_as_Lessor_Tabl
Customer Leases, as Lessor (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Leases [Abstract] | ' | ||||
Future Minimum Lease Payments to be Received Under Non Cancelable Operating Customer Leases | ' | ||||
Future minimum lease payments to be received under non-cancelable operating customer leases (exclusive of recoveries of operating costs from customers) are as follows for the years ending December 31 (in thousands): | |||||
Period Ending December 31, | |||||
2014 (July—December) | $ | 93,528 | |||
2015 | 168,511 | ||||
2016 | 136,426 | ||||
2017 | 102,526 | ||||
2018 | 78,178 | ||||
Thereafter | 164,711 | ||||
Total | $ | 743,880 | |||
Description_of_Business_Additi
Description of Business - Additional Information (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | Property | Common Class A [Member] | |
Organization And Description Of Business [Line Items] | ' | ' | ' |
Number of properties | 12 | ' | ' |
Common stock, par value | $0.01 | $0.01 | $0.01 |
Common stock, shares issued | 29,016,774 | 28,972,774 | 14,087,500 |
Net proceeds from issuance of shares | ' | ' | $279 |
Ownership Interest | 78.80% | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Useful life of property | ' | ' | '40 years | ' |
Depreciation expense from operation | $10.70 | $9 | $20.90 | $17.50 |
Real estate cost capitalized excluding interest cost | 2.5 | 2.2 | 4.7 | 3.9 |
Real estate interest cost capitalized incurred | 1.8 | 1.1 | 3.4 | 2.1 |
In Place Leases [Member] | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Amortization of lease cost | 0.6 | 0.4 | 1.3 | 1 |
Tenant Relationship [Member] | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Amortization of lease cost | $0.30 | $0.40 | $0.70 | $0.80 |
Minimum [Member] | Land, Buildings and Improvements [Member] | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Useful life of property | ' | ' | '20 years | ' |
Maximum [Member] | Land, Buildings and Improvements [Member] | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Useful life of property | ' | ' | '40 years | ' |
Maximum [Member] | Leasehold Improvements [Member] | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Useful life of property | ' | ' | '20 years | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Additional Information 1 (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | ||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Feb. 29, 2012 | Feb. 08, 2012 | |
Unsecured Revolving Credit Facility [Member] | Unsecured Revolving Credit Facility [Member] | Unsecured Revolving Credit Facility [Member] | Unsecured Revolving Credit Facility [Member] | Richmond Credit Facility [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | ||||||
Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment losses | $0 | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of the deferred financing costs | ' | ' | 1,314,000 | ' | ' | 600,000 | 700,000 | 1,200,000 | 1,600,000 | ' | ' | ' | ' |
Written off unamortized debt cost | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | 100,000 | ' | ' | ' |
Written off unamortization cost relation to assets securitization | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of deferred leasing costs totaled | 1,500,000 | 1,000,000 | 2,800,000 | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred income | 8,177,000 | ' | 8,177,000 | ' | 7,892,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of deferred revenue | 1,200,000 | 1,100,000 | 2,400,000 | 2,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount of derivative | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | 150,000,000 | 150,000,000 |
Company recorded equity-based compensation expense net of repurchased awards | 1,100,000 | 400,000 | 2,000,000 | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of the straight-line rent receivable on the balance sheets included in rents and other receivables | $3,200,000 | ' | $3,200,000 | ' | $2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Deferred Financing Costs, Net of Accumulated Amortization (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounting Policies [Abstract] | ' | ' |
Deferred financing costs | $9,973 | $9,159 |
Accumulated amortization | -3,071 | -1,867 |
Deferred financing costs, net | $6,902 | $7,292 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Deferred Leasing Costs, Net of Accumulated Amortization (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounting Policies [Abstract] | ' | ' |
Deferred leasing costs | $20,298 | $17,374 |
Accumulated amortization | -7,460 | -5,516 |
Deferred leasing costs, net | $12,838 | $11,858 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies - Additional Information 2 (Detail) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | |
Subsidiary | ||
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Aggregate allowance for doubtful accounts | $1,500,000 | $900,000 |
Outstanding liabilities for the capital leases | $4,441,000 | $2,538,000 |
Number of subsidiaries taxed as taxable REIT | 1 | ' |
Customer One [Member] | Rental Revenue [Member] | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Percentage of total revenue | 8.00% | ' |
Customer Two [Member] | Rental Revenue [Member] | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Percentage of total revenue | 5.00% | ' |
Other Customers [Member] | Maximum [Member] | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Percentage of total accounts receivable | 10.00% | ' |
Other Customers [Member] | Rental Revenue [Member] | Maximum [Member] | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Percentage of total revenue | 5.00% | ' |
Five Customers [Member] | Accounts Receivable [Member] | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Percentage of total revenue | 5.00% | ' |
Five Customers [Member] | Accounts Receivable [Member] | Maximum [Member] | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Percentage of total revenue | 33.50% | ' |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies - Financial Instruments Held at Fair Value (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Liabilities: | ' | ' |
Interest rate swap liability | $159 | $453 |
Fair Value Measurements, Level 1 [Member] | Interest Rate Swap [Member] | ' | ' |
Financial Liabilities: | ' | ' |
Interest rate swap liability | ' | ' |
Fair Value Measurements, Level 2 [Member] | Interest Rate Swap [Member] | ' | ' |
Financial Liabilities: | ' | ' |
Interest rate swap liability | 159 | 453 |
Fair Value Measurements, Level 3 [Member] | Interest Rate Swap [Member] | ' | ' |
Financial Liabilities: | ' | ' |
Interest rate swap liability | ' | ' |
Carrying Value [Member] | Interest Rate Swap [Member] | ' | ' |
Financial Liabilities: | ' | ' |
Interest rate swap liability | $159 | $453 |
Acquisition_of_Real_Estate_Add
Acquisition of Real Estate - Additional Information (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Business Acquisition [Line Items] | ' |
Lease period | '10 years |
Renewal of lease period | '15 years |
New Jersey Facility [Member] | ' |
Business Acquisition [Line Items] | ' |
Aggregate costs related to acquisition | 73.3 |
Acres of real estate property | 194 |
Area of facility | 560,000 |
New Jersey Facility [Member] | Raised Floor With Twelve MW Gross Power [Member] | ' |
Business Acquisition [Line Items] | ' |
Area of facility | 58,000 |
Capacity of the plant | 12 |
Acquisition_of_Real_Estate_Con
Acquisition of Real Estate - Consideration for the New Jersey Facility and the Preliminary Allocation of the Fair Value of Assets Acquired (Detail) (New Jersey Facility [Member], USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Business Acquisition [Line Items] | ' |
Buildings | $35,574 |
Land | 17,976 |
Other | 301 |
Total purchase price | 73,300 |
Buildings, Weighted average useful life | '40 years |
Acquired Intangibles [Member] | ' |
Business Acquisition [Line Items] | ' |
Intangible assets | 16,114 |
Intangible assets, Weighted average useful life | '10 years |
Other [Member] | ' |
Business Acquisition [Line Items] | ' |
Intangible assets, Weighted average useful life | '10 years |
Deferred Costs [Member] | ' |
Business Acquisition [Line Items] | ' |
Intangible assets | $3,335 |
Intangible assets, Weighted average useful life | '10 years |
Real_Estate_Assets_and_Constru2
Real Estate Assets and Construction in Progress - Summary of Properties Owned or Leased by the Company (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Real Estate Properties [Line Items] | ' | ' |
Land | $48,576 | $30,601 |
Buildings and improvements | 829,057 | 728,230 |
Construction in progress | 183,516 | 146,904 |
Total Cost | 1,061,149 | 905,735 |
Owned Properties [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | 48,576 | 30,601 |
Buildings and improvements | 802,625 | 703,657 |
Construction in progress | 182,888 | 146,904 |
Total Cost | 1,034,089 | 881,162 |
Owned Properties [Member] | Suwanee, Georgia (Atlanta-Suwanee) [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | 3,521 | 3,521 |
Buildings and improvements | 131,966 | 126,486 |
Construction in progress | 2,468 | 3,270 |
Total Cost | 137,955 | 133,277 |
Owned Properties [Member] | Atlanta, Georgia (Atlanta-Metro) [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | 15,396 | 15,397 |
Buildings and improvements | 348,547 | 296,547 |
Construction in progress | 4,800 | 32,456 |
Total Cost | 368,743 | 344,400 |
Owned Properties [Member] | Santa Clara, California [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Buildings and improvements | 88,214 | 86,544 |
Construction in progress | 953 | 1,249 |
Total Cost | 89,167 | 87,793 |
Owned Properties [Member] | Richmond, Virginia [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | 2,180 | 2,180 |
Buildings and improvements | 112,762 | 108,979 |
Construction in progress | 72,266 | 67,155 |
Total Cost | 187,208 | 178,314 |
Owned Properties [Member] | Sacramento, California [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | 1,481 | 1,481 |
Buildings and improvements | 53,079 | 52,841 |
Construction in progress | 5,411 | 4,273 |
Total Cost | 59,971 | 58,595 |
Owned Properties [Member] | Princeton New Jersey [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | 17,976 | ' |
Buildings and improvements | 35,865 | ' |
Total Cost | 53,841 | ' |
Owned Properties [Member] | Dallas, Texas [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | 5,808 | 5,808 |
Construction in progress | 96,928 | 38,501 |
Total Cost | 102,736 | 44,309 |
Owned Properties [Member] | Miami, Florida [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | 1,777 | 1,777 |
Buildings and improvements | 27,656 | 27,553 |
Construction in progress | 62 | ' |
Total Cost | 29,495 | 29,330 |
Owned Properties [Member] | Lenexa, Kansas [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | 437 | 437 |
Buildings and improvements | 3,127 | 3,298 |
Total Cost | 3,564 | 3,735 |
Owned Properties [Member] | Wichita, Kansas [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Buildings and improvements | 1,409 | 1,409 |
Total Cost | 1,409 | 1,409 |
Leased Properties [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Buildings and improvements | 26,432 | 24,573 |
Construction in progress | 628 | ' |
Total Cost | 27,060 | 24,573 |
Leased Properties [Member] | Jersey City, New Jersey [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Buildings and improvements | 25,653 | 23,811 |
Construction in progress | 628 | ' |
Total Cost | 26,281 | 23,811 |
Leased Properties [Member] | Overland Park, Kansas [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Buildings and improvements | 779 | 762 |
Total Cost | $779 | $762 |
Credit_Facilities_and_Mortgage2
Credit Facilities and Mortgage Notes Payable - Outstanding Debt Excluding Capital Leases (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Outstanding debt | $526,739 | $345,339 |
Unsecured Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Outstanding debt | 439,000 | 256,500 |
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 | $17,739 | $18,839 |
Credit_Facilities_and_Mortgage3
Credit Facilities and Mortgage Notes Payable - Unsecured Credit Facility - Additional Information (Detail) (USD $) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Aug. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Apr. 30, 2014 | Feb. 28, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jul. 23, 2014 | Apr. 30, 2014 |
In Millions, unless otherwise specified | Term Loan [Member] | Revolving Credit Facility [Member] | Letter of Credit [Member] | Subsequent Event [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Unsecured Credit Facility [Member] | Unsecured Credit Facility [Member] | Unsecured Credit Facility [Member] | Unsecured Credit Facility [Member] | Unsecured Credit Facility [Member] | Unsecured Credit Facility [Member] | |
Unsecured Credit Facility [Member] | Libor Rate [Member] | Base Rate [Member] | Libor Rate [Member] | Base Rate [Member] | Term Loan [Member] | Subsequent Event [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility agreement date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-May-13 | ' | ' | ' |
Credit Facility maximum borrowing capacity | ' | $225 | $350 | ' | ' | ' | ' | ' | ' | ' | $400 | $575 | ' | ' | ' |
Unsecured Credit Facility term | ' | '5 years | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase the amount of line of credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 675 | ' | ' | ' |
Unsecured revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50 | ' | ' | ' | ' |
Amount of unsecured revolving credit facility expanded | ' | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current revolving Credit facility | ' | ' | ' | ' | 410 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional letter of credit outstanding | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leverage Ratio | ' | ' | ' | ' | ' | 2.10% | 1.10% | 2.85% | 1.85% | ' | ' | ' | ' | ' | ' |
Line of credit facility weighted average interest rate outstanding percentage | 2.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of unsecured debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | 225 | ' | ' | ' | ' | 150 |
Repayment of term loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $75 | ' | ' |
Interest rate of senior note | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.88% | ' | 5.88% | ' |
Credit_Facilities_and_Mortgage4
Credit Facilities and Mortgage Notes Payable - Richmond Credit Facility - Additional Information (Detail) (USD $) | 1 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 6 Months Ended | ||||||||||
In Millions, unless otherwise specified | Aug. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jan. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Aug. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Subsequent Event [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | Richmond Credit Facility [Member] | Richmond Credit Facility [Member] | Richmond Credit Facility [Member] | Richmond Credit Facility [Member] | Richmond Credit Facility [Member] | Richmond Credit Facility [Member] | Richmond Credit Facility [Member] | Richmond Credit Facility [Member] | Richmond Credit Facility [Member] | Richmond Credit Facility [Member] | |
Richmond Credit Facility [Member] | Libor Rate [Member] | Base Rate [Member] | Libor Rate [Member] | Base Rate [Member] | Third Amendment [Member] | Subsequent Event [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | |||
Libor Rate [Member] | Base Rate [Member] | Libor Rate [Member] | Base Rate [Member] | ||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit Facility maximum borrowing capacity | ' | ' | ' | ' | ' | $100 | $80 | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, maturity date | ' | ' | ' | ' | ' | ' | ' | 30-Jun-19 | ' | ' | ' | ' | ' | ' | ' |
Decrease in total revolving credit commitments | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100 | ' | ' | 80 | ' | ' |
Increased borrowing capacity after considering accordion feature | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200 | ' | ' | ' | ' | ' |
Leverage Ratio | ' | 2.85% | 1.85% | 2.10% | 1.10% | ' | ' | ' | ' | ' | 2.85% | 1.85% | ' | 2.10% | 1.10% |
Amount of unsecured revolving credit facility expanded | 40 | ' | ' | ' | ' | ' | ' | ' | 40 | ' | ' | ' | ' | ' | ' |
Current revolving Credit facility | $120 | ' | ' | ' | ' | ' | ' | ' | $120 | ' | ' | ' | ' | ' | ' |
Credit_Facilities_and_Mortgage5
Credit Facilities and Mortgage Notes Payable - Atlanta-Metro Equipment Loan - Additional Information (Detail) (Atlanta-Metro Equipment Loan [Member], USD $) | 1 Months Ended | |
In Millions, unless otherwise specified | Apr. 30, 2010 | Apr. 09, 2010 |
Atlanta-Metro Equipment Loan [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Loan agreement amount of loan | ' | $25 |
Loan agreement interest rate | ' | 6.85% |
Atlanta Metro equipment loan agreement aggregate term of loan | '10 years | ' |
Loan agreement, maturity date | 1-Jun-20 | ' |
Credit_Facilities_and_Mortgage6
Credit Facilities and Mortgage Notes Payable - Annual Remaining Principal Payment (Detail) (Senior Notes [Member], USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Senior Notes [Member] | ' |
Debt Instrument [Line Items] | ' |
2014 | $1,139 |
2015 | 2,397 |
2016 | 2,567 |
2017 | 216,748 |
2018 | 227,943 |
Thereafter | 75,945 |
Total | $526,739 |
Interest_Rate_Derivative_Instr1
Interest Rate Derivative Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | |||||||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Feb. 29, 2012 | Feb. 08, 2012 | Jun. 30, 2014 | |
Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [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] | |||
Fair Value Measurements, Level 2 [Member] | Fair Value Measurements, Level 2 [Member] | Interest Rate Swap [Member] | Interest Rate Swap [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 | ' |
Capped LIBOR rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% |
Unrealized gains or losses on cash flow hedge derivative effective portion | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | 200,000 | ' | ' | ' | ' |
Interest expense related to payments on interest rate swaps | 2,208,000 | 4,273,000 | 200,000 | 100,000 | 300,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate swap liability recorded at fair value | ' | ' | ' | ' | ' | ' | $200,000 | $500,000 | ' | ' | ' | ' | ' | ' |
Partners_Capital_Equity_and_In2
Partners' Capital, Equity and Incentive Compensation Plans - Additional Information (Detail) (USD $) | 0 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||
6-May-14 | Apr. 08, 2014 | Jan. 07, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Class | Class O LTIP Holders [Member] | Class O Units [Member] | Class RS Units [Member] | Chief Executive Officer [Member] | Maximum [Member] | Restricted Class A Common Stock [Member] | Options to purchase Class A common stock [Member] | 2013 Equity Incentive Plan [Member] | ||||
Vote | ||||||||||||
Partners Capital And Distributions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of classes of partnership units outstanding | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' |
Authorized shares to be issued under the plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,750,000 |
Number of votes per share | ' | ' | ' | ' | ' | ' | ' | 50 | ' | ' | ' | ' |
Percentage of operating partnership unit exchanged | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' |
Nonvested awards outstanding | ' | ' | ' | ' | ' | 900,000 | 100,000 | ' | ' | 200,000 | 600,000 | ' |
Equity based compensation expense unrecognized | ' | ' | ' | $8,800,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Equity based compensation expense vesting period | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' |
Equity based compensation awards intrinsic value | ' | ' | ' | 17,300,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate distribution made to stockholders and partners | ' | $10,700,000 | $9,000,000 | ' | $200,000 | ' | ' | ' | ' | ' | ' | ' |
Dividend paid to common stockholders | ' | $0.29 | $0.24 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Partnership distribution per unit | ' | $0.29 | $0.24 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends Payable, Date Declared | 8-Jul-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash dividend per common share | $0.29 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends Payable, Date of Record | 20-Jun-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Partners_Capital_Equity_and_In3
Partners' Capital, Equity and Incentive Compensation Plans - Summary of Award Activity Under 2010 Equity Incentive Plan and 2013 Equity Incentive Plan and Related Information (Detail) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
2013 Equity Incentive Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Beginning balance, Weighted average fair value | $3.50 |
Weighted average fair value, Granted | $4.94 |
Weighted average fair value, Exercised | ' |
Weighted average fair value, Released from restriction | ' |
Weighted average fair value, Cancelled/Expired | $3.52 |
Ending balance, Weighted average fair value | $4.12 |
Beginning balance, Options Outstanding | 367,910 |
Options, Granted | 230,539 |
Options, Exercised | 0 |
Options, Released from restriction | 0 |
Options, Cancelled/Expired | -5,000 |
Ending balance, Options Outstanding | 593,449 |
Beginning balance, Weighted average exercise price options outstanding | $21 |
Weighted average exercise price options outstanding, Granted | $25.51 |
Weighted average exercise price options outstanding, Exercised | $0 |
Weighted average exercise price options outstanding, Released from restriction | $0 |
Weighted average exercise price options outstanding, Cancelled/Expired | $21 |
Ending balance, Weighted average exercise price options outstanding | $22.75 |
2013 Equity Incentive Plan [Member] | Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Beginning balance, Number of units | 108,629 |
Number of units, Granted | 44,000 |
Number of units, Exercised | 0 |
Number of units, Released from restriction | 0 |
Number of units, Cancelled/Expired | 0 |
Ending balance, Number of units | 152,629 |
Beginning balance, Weighted average exercise price units | $21 |
Weighted average exercise price units, Granted | $25.51 |
Weighted average exercise price units, Exercised | ' |
Weighted average exercise price units, Released from restriction | ' |
Weighted average exercise price units, Cancelled/Expired | ' |
Ending balance, Weighted average exercise price units | $22.30 |
2010 Equity Incentive Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Beginning balance, Weighted average fair value | $3.84 |
Weighted average fair value, Granted | ' |
Weighted average fair value, Exercised | ' |
Weighted average fair value, Released from restriction | ' |
Weighted average fair value, Cancelled/Expired | $7.93 |
Ending balance, Weighted average fair value | $4.09 |
2010 Equity Incentive Plan [Member] | Class O Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Beginning balance, Number of units | 1,622,747 |
Number of units, Granted | 0 |
Number of units, Exercised | 0 |
Number of units, Released from restriction | 0 |
Number of units, Cancelled/Expired | -34,395 |
Ending balance, Number of units | 1,588,352 |
Beginning balance, Weighted average exercise price units | $23.44 |
Weighted average exercise price units, Granted | ' |
Weighted average exercise price units, Exercised | ' |
Weighted average exercise price units, Released from restriction | ' |
Weighted average exercise price units, Cancelled/Expired | $24.83 |
Ending balance, Weighted average exercise price units | $24.49 |
2010 Equity Incentive Plan [Member] | Class RS Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Beginning balance, Number of units | 173,750 |
Number of units, Granted | 0 |
Number of units, Exercised | 0 |
Number of units, Released from restriction | -81,750 |
Number of units, Cancelled/Expired | 0 |
Ending balance, Number of units | 92,000 |
Beginning balance, Weighted average exercise price units | $21.86 |
Weighted average exercise price units, Granted | ' |
Weighted average exercise price units, Exercised | ' |
Weighted average exercise price units, Released from restriction | $25 |
Weighted average exercise price units, Cancelled/Expired | ' |
Ending balance, Weighted average exercise price units | $23.78 |
Partners_Capital_Equity_and_In4
Partners' Capital, Equity and Incentive Compensation Plans - Summary of Assumptions and Fair Values for Restricted Stock and Options to Purchase Shares of Class A Common Stock Granted (Detail) (USD $) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2014 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Fair value of restricted stock granted | $25.51 | $25.51 |
Expected volatility | 33.00% | 33.00% |
Expected dividend yield | 4.55% | 4.55% |
Minimum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Fair value of options granted | $4.94 | $4.94 |
Expected term (years) | '5 years 6 months | '5 years 6 months |
Expected risk-free interest rates | 1.70% | 1.70% |
Maximum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Fair value of options granted | $5.08 | $5.08 |
Expected term (years) | '6 years 1 month 6 days | '6 years 1 month 6 days |
Expected risk-free interest rates | 1.90% | 1.90% |
Partners_Capital_Equity_and_In5
Partners' Capital, Equity and Incentive Compensation Plans - Summary of Information About Awards Outstanding (Detail) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Operating Partnership Awards Outstanding [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Awards Outstanding | 1,680,352 |
Operating Partnership Awards Outstanding [Member] | Class RS Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Exercise price | ' |
Awards Outstanding | 92,000 |
Remaining term of awards | '2 years |
Operating Partnership Awards Outstanding [Member] | Class 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 | 1,588,352 |
Remaining term of awards | '2 years |
QTS Realty Trust, Inc Awards Outstanding [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Awards Outstanding | 746,078 |
QTS Realty Trust, Inc Awards Outstanding [Member] | Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Exercise price | ' |
Awards Outstanding | 152,629 |
Remaining term of awards | '3 years |
QTS Realty Trust, Inc Awards Outstanding [Member] | Options to purchase Class A common stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Lower limit of exercise price | $21 |
Upper limit of exercise price | $25.51 |
Awards Outstanding | 593,449 |
Remaining term of awards | '2 years |
Related_Party_Transactions_Sum
Related Party Transactions - Summary of Related Party Transactions (Detail) (Affiliated Entity [Member], USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Affiliated Entity [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Tax, utility, insurance and other reimbursement | $115 | $10 | $167 | $103 |
Rent expense | 257 | 305 | 519 | 448 |
Capital assets acquired | 27 | 15 | 74 | 15 |
Total | $399 | $330 | $760 | $566 |
Noncontrolling_Interest_Additi
Noncontrolling Interest - Additional Information (Detail) | Jun. 30, 2014 |
Noncontrolling Interest [Abstract] | ' |
Quality Tech LP ownership percentage in operating partnership | 21.20% |
Earnings_Per_Share_Summary_of_
Earnings Per Share - Summary of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 6 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 |
Earnings Per Share [Abstract] | ' | ' |
Net income available to common stockholders | $3,090 | $7,288 |
Weighted average shares outstanding-basic | 29,016,774 | 29,001,374 |
Net income per share-basic | $0.11 | $0.25 |
Net income | $3,921 | $9,249 |
Weighted average shares outstanding-diluted | 37,009,746 | 36,934,210 |
Net income per share-diluted | $0.11 | $0.25 |
Earnings_Per_Share_Summary_of_1
Earnings Per Share - Summary of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2014 | Jun. 30, 2014 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' |
Weighted average shares outstanding-diluted | 37,009,746 | 36,934,210 |
Operating Partnership Awards Outstanding [Member] | ' | ' |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' |
Weighted average shares outstanding-diluted | 7,997,000 | 7,873,000 |
Customer_Leases_as_Lessor_Futu
Customer Leases, as Lessor - Future Minimum Lease Payments to be Received Under Non Cancelable Operating Customer Leases (Detail) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | ' |
2014 (July-December) | $93,528 |
2015 | 168,511 |
2016 | 136,426 |
2017 | 102,526 |
2018 | 78,178 |
Thereafter | 164,711 |
Total | $743,880 |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments - Additional Information (Detail) (Atlanta-Metro Equipment Loan [Member], USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Atlanta-Metro Equipment Loan [Member] | ' |
Fair Value Of Financial Instruments [Line Items] | ' |
Fair value of loan based on current market rates | $17.10 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 0 Months Ended | 6 Months Ended | 0 Months Ended | 1 Months Ended | 1 Months Ended | 0 Months Ended | |||||||
In Millions, except Per Share data, unless otherwise specified | 6-May-14 | Jun. 30, 2014 | Jul. 08, 2014 | Aug. 31, 2014 | Jul. 23, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Jul. 23, 2014 | Jul. 08, 2014 | Jul. 08, 2014 | Jul. 08, 2014 | Jul. 08, 2014 | Jul. 08, 2014 |
Unsecured Credit Facility [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||
Unsecured Credit Facility [Member] | Richmond Credit Facility [Member] | Unsecured Credit Facility [Member] | Sun Times Press Facility [Member] | Sun Times Press Facility [Member] | Sun Times Press Facility [Member] | Sun Times Press Facility [Member] | Sun Times Press Facility [Member] | ||||||
sqft | Raised Floor With 24 MW Gross Power [Member] | Raised Floor Capacity [Member] | Raised Floor With 37 MW Gross Power [Member] | Developable Land [Member] | |||||||||
MW | sqft | MW | acre | ||||||||||
sqft | sqft | ||||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition of data center facility | ' | ' | ' | ' | ' | ' | ' | ' | $18 | ' | ' | ' | ' |
Area of facility | ' | ' | ' | ' | ' | ' | ' | ' | 317,000 | 134,000 | 400,000 | 215,000 | ' |
Capacity of the plant | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24 | ' | 37 | ' |
Area of real estate property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30 |
Cash dividend per common share | $0.29 | ' | $0.29 | $0.29 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends Payable, Date Declared | 8-Jul-14 | ' | 8-Jul-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends Payable, Date of Record | 20-Jun-14 | ' | 20-Jun-14 | 19-Sep-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | 300 | ' | ' | ' | ' | ' | ' | ' | ' |
Senior notes due | ' | ' | ' | ' | ' | ' | ' | '2022 | ' | ' | ' | ' | ' |
Interest rate of senior note | ' | 5.88% | ' | ' | ' | ' | ' | 5.88% | ' | ' | ' | ' | ' |
Percentage of issued price equal to face value | ' | ' | ' | ' | 99.21% | ' | ' | ' | ' | ' | ' | ' | ' |
Unsecured term loan outstanding | ' | ' | ' | ' | 75 | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends Payable, Date to be Paid | ' | ' | ' | 7-Oct-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of unsecured revolving credit facility expanded | ' | ' | ' | ' | ' | 10 | 40 | ' | ' | ' | ' | ' | ' |
Current revolving Credit facility | ' | ' | ' | ' | ' | $410 | $120 | ' | ' | ' | ' | ' | ' |