Document_And_Entity_Informatio
Document And Entity Information | 12 Months Ended |
Dec. 31, 2014 | |
Document Information [Line Items] | |
Document Type | S-4 |
Amendment Flag | TRUE |
Document Period End Date | 31-Dec-14 |
Entity Registrant Name | QualityTech, LP |
Entity Central Index Key | 1561164 |
Entity Filer Category | Non-accelerated Filer |
Amendment Description | QTS does not guarantee the Notes and will not be required to guarantee the Notes, except under the circumstances described below under “Description of the Notes—Covenants—Limitations on Issuances of Guarantees by Restricted Subsidiaries and the REIT.” Although QTS does not guarantee the Notes, we have included its financial statements in this prospectus and have presented the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” on a combined basis with respect to the financial statements of QTS and the Operating Partnership. We have presented the disclosure in this manner because, in the future, we expect to file with the SEC combined periodic reports for QTS and the Operating Partnership. Management operates QTS and the Operating Partnership as one business. The management of QTS consists of the same employees as the management of the Operating Partnership. QTS is the sole general partner of the Operating Partnership, and, as of December 31, 2014, its only material asset consisted of its ownership of approximately 79.6% of the Operating Partnership. QTS does not conduct business itself, other than acting as the sole general partner of the Operating Partnership and issuing public equity from time to time. QTS has not issued or guaranteed any indebtedness. Except for net proceeds from public equity issuances by QTS, which are contributed to the Operating Partnership in exchange for units of limited partnership interest of the Operating Partnership, the Operating Partnership generates all remaining capital required by our business through its operations, the direct or indirect incurrence of indebtedness, and the issuance of partnership units. Therefore, as general partner with control of the Operating Partnership, QTS consolidates the Operating Partnership for financial reporting purposes. We believe, therefore, that a combined presentation with respect to QTS and the Operating Partnership, including providing one set of notes for the financial statements of QTS and the Operating Partnership, provides the following benefits: enhances investors’ understanding of QTS and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business; eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the disclosure in this report applies to both QTS and the Operating Partnership; and creates time and cost efficiencies through the preparation of presentation instead of two separate presentations. In addition, in light of these combined disclosures, we believe it is important for investors to understand the few differences between QTS and the Operating Partnership in the context of how QTS and the Operating Partnership operate as a consolidated company. The presentation of stockholders’ equity and partners’ capital are the main areas of difference between the consolidated balance sheets of QTS and those of the Operating Partnership. The Operating Partnership’s capital includes general and limited common units that are owned by QTS and the other partners. QTS' stockholders’ equity includes common stock, additional paid in capital, accumulated other comprehensive income (loss) and accumulated dividends in excess of earnings. The remaining equity is the portion of net assets that are retained by partners other than QTS, referred to as noncontrolling interests. The primary difference in QTS' Statements of Operations and Comprehensive Income (Loss) is that for net income (loss), QTS retains its proportionate portion of the net income (loss) based on its ownership of the Operating Partnership, with the remaining balance being retained by the Operating Partnership. |
CONSOLIDATED_FINANCIAL_STATEME
CONSOLIDATED FINANCIAL STATEMENTS BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Real Estate Assets | ||
Land | $48,577 | $30,601 |
Buildings and improvements | 914,286 | 728,230 |
Less: Accumulated depreciation | -180,167 | -137,725 |
Total real estate assets | 782,696 | 621,106 |
Construction in progress | 214,719 | 146,904 |
Real Estate Assets, net | 997,415 | 768,010 |
Cash and cash equivalents | 10,788 | 5,210 |
Rents and other receivables, net | 15,579 | 14,434 |
Acquired intangibles, net | 18,000 | 5,396 |
Deferred costs, net | 37,058 | 19,150 |
Prepaid expenses | 3,079 | 1,797 |
Other assets, net | 24,640 | 17,359 |
TOTAL ASSETS | 1,106,559 | 831,356 |
LIABILITIES | ||
Mortgage notes payable | 86,600 | 88,839 |
Unsecured credit facility | 239,838 | 256,500 |
Senior notes | 297,729 | 0 |
Capital lease obligations | 13,062 | 2,538 |
Accounts payable and accrued liabilities | 64,607 | 63,204 |
Dividends payable | 10,705 | 8,965 |
Advance rents, security deposits and other liabilities | 3,302 | 3,261 |
Deferred income | 10,531 | 7,892 |
Derivative liability | 0 | 453 |
TOTAL LIABILITIES | 726,374 | 431,652 |
EQUITY | ||
Common stock, $0.01 par value, 450,133,000 shares authorized, 29,408,138 and 28,972,774 shares issued and outstanding as of December 31, 2014 and 2013, respectively | 294 | 289 |
Additional paid-in capital | 324,917 | 318,834 |
Accumulated other comprehensive loss | 0 | -357 |
Accumulated dividends in excess of earnings | -22,503 | -3,799 |
Total stockholders’ equity | 302,708 | 314,967 |
Noncontrolling interests | 77,477 | 84,737 |
TOTAL EQUITY | 380,185 | 399,704 |
TOTAL LIABILITIES AND EQUITY | 1,106,559 | 831,356 |
Qualitytech, LP [Member] | ||
Real Estate Assets | ||
Land | 48,577 | 30,601 |
Buildings and improvements | 914,286 | 728,230 |
Less: Accumulated depreciation | -180,167 | -137,725 |
Total real estate assets | 782,696 | 621,106 |
Construction in progress | 214,719 | 146,904 |
Real Estate Assets, net | 997,415 | 768,010 |
Cash and cash equivalents | 10,788 | 5,210 |
Rents and other receivables, net | 15,579 | 14,434 |
Acquired intangibles, net | 18,000 | 5,396 |
Deferred costs, net | 37,058 | 19,150 |
Prepaid expenses | 3,079 | 1,797 |
Other assets, net | 24,640 | 17,359 |
TOTAL ASSETS | 1,106,559 | 831,356 |
LIABILITIES | ||
Mortgage notes payable | 86,600 | 88,839 |
Unsecured credit facility | 239,838 | 256,500 |
Senior notes | 297,729 | 0 |
Capital lease obligations | 13,062 | 2,538 |
Accounts payable and accrued liabilities | 64,607 | 63,204 |
Dividends payable | 10,705 | 8,965 |
Advance rents, security deposits and other liabilities | 3,302 | 3,261 |
Deferred income | 10,531 | 7,892 |
Derivative liability | 0 | 453 |
TOTAL LIABILITIES | 726,374 | 431,652 |
EQUITY | ||
TOTAL EQUITY | 380,185 | 399,704 |
Partners’ capital | 380,185 | 399,704 |
TOTAL LIABILITIES AND EQUITY | $1,106,559 | $831,356 |
CONSOLIDATED_FINANCIAL_STATEME1
CONSOLIDATED FINANCIAL STATEMENTS BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 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 | 29,408,138 | 28,972,774 |
Common stock, shares outstanding | 29,408,138 | 28,972,774 |
CONSOLIDATED_FINANCIAL_STATEME2
CONSOLIDATED FINANCIAL STATEMENTS STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 12 Months Ended | 9 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 14, 2013 | ||
Revenues: | |||||||
Rental | $33,304 | $175,649 | |||||
Recoveries from customers | 2,674 | 19,194 | |||||
Cloud and managed services | 4,074 | 20,231 | |||||
Other | 410 | 2,715 | |||||
Total revenues | 40,462 | 217,789 | |||||
Operating Expenses: | |||||||
Property operating costs | 13,482 | 71,518 | |||||
Real estate taxes and insurance | 1,016 | 5,116 | |||||
Depreciation and amortization | 11,238 | 58,282 | |||||
General and administrative | 8,457 | 45,283 | |||||
Restructuring | 0 | 1,298 | |||||
Transaction costs | 66 | 1,018 | |||||
Total operating expenses | 34,259 | 182,515 | |||||
Operating income | 6,203 | 35,274 | |||||
Other income and expenses: | |||||||
Interest income | 1 | 8 | |||||
Interest expense | -2,049 | -15,308 | |||||
Other (expense) income, net | -153 | -871 | |||||
Income (loss) before gain on sale of real estate | 4,002 | 19,103 | |||||
Gain on sale of real estate | 0 | 0 | |||||
Net income (loss) | 4,002 | 19,103 | |||||
Net income attributable to noncontrolling interests | -848 | -4,031 | |||||
Net income (loss) attributable to QTS Realty Trust, Inc | 3,154 | 15,072 | |||||
Unrealized gain (loss) on swap | 74 | 0 | |||||
Comprehensive income (loss) | 3,228 | 15,072 | |||||
Net income per share attributable to common shares: | |||||||
Basic | $0.11 | [1] | $0.52 | ||||
Diluted | $0.11 | [1] | $0.51 | ||||
Weighted average common shares outstanding: | |||||||
Basic | 28,972,774 | 29,054,576 | |||||
Diluted | 36,794,215 | [2] | 37,133,584 | [2] | |||
Qualitytech, LP [Member] | |||||||
Revenues: | |||||||
Rental | 175,649 | 145,306 | 120,758 | ||||
Recoveries from customers | 19,194 | 13,098 | 9,294 | ||||
Cloud and managed services | 20,231 | 17,531 | 14,497 | ||||
Other | 2,715 | 1,952 | 1,210 | ||||
Total revenues | 217,789 | 177,887 | 145,759 | ||||
Operating Expenses: | |||||||
Property operating costs | 71,518 | 60,750 | 51,506 | ||||
Real estate taxes and insurance | 5,116 | 4,492 | 3,632 | ||||
Depreciation and amortization | 58,282 | 47,358 | 34,932 | ||||
General and administrative | 45,283 | 39,183 | 35,986 | ||||
Restructuring | 1,298 | 0 | 3,291 | ||||
Transaction costs | 1,018 | 118 | 897 | ||||
Total operating expenses | 182,515 | 151,901 | 130,244 | ||||
Operating income | 35,274 | 25,986 | 15,515 | ||||
Other income and expenses: | |||||||
Interest income | 8 | 18 | 61 | ||||
Interest expense | -15,308 | -18,724 | -25,140 | ||||
Other (expense) income, net | -871 | -3,430 | -1,151 | ||||
Income (loss) before gain on sale of real estate | 19,103 | 3,850 | -10,715 | ||||
Gain on sale of real estate | 0 | 0 | 948 | ||||
Net income (loss) | 19,103 | 3,850 | -9,767 | ||||
Unrealized gain (loss) on swap | 0 | 294 | -766 | ||||
Comprehensive income (loss) | 19,103 | 4,144 | -10,533 | ||||
Historical Predecessor [Member] | |||||||
Revenues: | |||||||
Rental | 120,758 | 112,002 | |||||
Recoveries from customers | 9,294 | 10,424 | |||||
Cloud and managed services | 14,497 | 13,457 | |||||
Other | 1,210 | 1,542 | |||||
Total revenues | 145,759 | 137,425 | |||||
Operating Expenses: | |||||||
Property operating costs | 51,506 | 47,268 | |||||
Real estate taxes and insurance | 3,632 | 3,476 | |||||
Depreciation and amortization | 34,932 | 36,120 | |||||
General and administrative | 35,986 | 30,726 | |||||
Restructuring | 3,291 | 0 | |||||
Transaction costs | 897 | 52 | |||||
Total operating expenses | 130,244 | 117,642 | |||||
Operating income | 15,515 | 19,783 | |||||
Other income and expenses: | |||||||
Interest income | 61 | 17 | |||||
Interest expense | -25,140 | -16,675 | |||||
Other (expense) income, net | -1,151 | -3,277 | |||||
Income (loss) before gain on sale of real estate | -10,715 | -152 | |||||
Gain on sale of real estate | 948 | 0 | |||||
Net income (loss) | -9,767 | -152 | |||||
Net income attributable to noncontrolling interests | 0 | 0 | |||||
Net income (loss) attributable to QTS Realty Trust, Inc | -9,767 | -152 | |||||
Unrealized gain (loss) on swap | -766 | 220 | |||||
Comprehensive income (loss) | ($10,533) | $68 | |||||
Net income per share attributable to common shares: | |||||||
Basic | $0 | $0 | |||||
Diluted | $0 | $0 | |||||
Weighted average common shares outstanding: | |||||||
Basic | 0 | 0 | |||||
Diluted | 0 | 0 | |||||
[1] | Net income per share attributable to QTS for the period October 15, 2013 through December 31, 2013. | ||||||
[2] | Includes 7,770 Class A and Class RS units, 195 “in the money†value of Class O units on an “as if†converted basis and 114 “in the money†value options to purchase shares of Class A common stock on an “as if†converted basis as of the year ended December 31, 2014. As of the year ended December 31, 2013, this amount includes 7,797 Class A and Class RS units and 24 “in the money†value of Class O units on as “as if†converted basis. |
CONSOLIDATED_FINANCIAL_STATEME3
CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Total | Partnership Units [Member] | Partners Capital [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Dividends in Excess of Earnings [Member] | Total stockholders' Equity [Member] | Noncontrolling Interest [Member] | Qualitytech, LP [Member] | Qualitytech, LP [Member] | Qualitytech, LP [Member] |
In Thousands | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Partnership Units [Member] | Partnership Units [Member] | |
General Partner [Member] | Limited Partner [Member] | |||||||||||
USD ($) | USD ($) | |||||||||||
Beginning balance at Dec. 31, 2011 | $39,865 | $39,865 | $0 | $0 | $0 | $0 | $0 | $0 | $39,865 | $1 | $39,864 | |
Beginning balance, shares at Dec. 31, 2011 | 16,050 | 0 | 1 | 16,049 | ||||||||
Equity-based compensation expense | 412 | 412 | 0 | 0 | 0 | 0 | 0 | 0 | 412 | 412 | ||
Issuance of RS LTIP Units | 150 | 0 | 0 | 150 | ||||||||
Equity investment in Class D units, net of costs | 91,935 | 91,935 | 0 | 0 | 0 | 0 | 0 | 0 | 91,935 | 91,935 | ||
Equity investment in Class D units, net of costs, shares | 3,680 | 0 | 3,680 | |||||||||
PIK settlement | 2,294 | 0 | 2,294 | |||||||||
Other comprehensive loss | -766 | -766 | 0 | 0 | 0 | 0 | 0 | 0 | -766 | -766 | ||
Net income (loss) | -9,767 | -9,767 | 0 | 0 | 0 | 0 | 0 | 0 | -9,767 | -1 | -9,766 | |
Ending balance at Dec. 31, 2012 | 121,679 | 121,679 | 0 | 0 | 0 | 0 | 0 | 0 | 121,679 | 121,679 | ||
Ending balance, shares at Dec. 31, 2012 | 22,174 | 0 | 1 | 22,173 | ||||||||
Equity-based compensation expense | 1,369 | 1,369 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Member advances exchanged for LP units | 10,000 | 10,000 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Member advances exchanged for LP units, shares | 400 | 0 | ||||||||||
Partnership distributions | -7,633 | -7,633 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Other comprehensive loss | 220 | 220 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Net income (loss) | -152 | -152 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Ending balance at Oct. 14, 2013 | 125,483 | 125,483 | 0 | 0 | 0 | 0 | 125,483 | 0 | ||||
Ending balance, shares at Oct. 14, 2013 | 22,574 | 0 | ||||||||||
Beginning balance at Dec. 31, 2012 | 121,679 | 121,679 | ||||||||||
Equity-based compensation expense | 1,947 | 1,947 | ||||||||||
Member advances exchanged for LP units | 10,000 | 10,000 | ||||||||||
Member advances exchanged for LP units, shares | 400 | |||||||||||
Partnership distributions | -9,645 | -9,645 | ||||||||||
Net proceeds from IPO | 279,059 | 279,059 | ||||||||||
Net proceeds from IPO, shares | 14,197 | |||||||||||
Other comprehensive loss | -233 | -233 | ||||||||||
Net income (loss) | 3,850 | 3,850 | ||||||||||
Dividend to shareholders | -6,953 | -6,953 | ||||||||||
Ending balance at Dec. 31, 2013 | 399,704 | 399,704 | ||||||||||
Ending balance, shares at Dec. 31, 2013 | 1 | 36,770 | ||||||||||
Beginning balance at Oct. 14, 2013 | 125,483 | 125,483 | 0 | 0 | 0 | 0 | 125,483 | 0 | ||||
Equity-based compensation expense | 578 | 0 | 0 | 578 | 0 | 0 | 578 | 0 | ||||
Reclassify partners' capital | 0 | -125,483 | 148 | 39,338 | 0 | 0 | -85,997 | 85,997 | ||||
Reclassify partners' capital, shares | -22,574 | 14,776 | ||||||||||
Net proceeds from IPO | 279,059 | 0 | 141 | 278,918 | 0 | 0 | 279,059 | 0 | ||||
Net proceeds from IPO, shares | 0 | 14,197 | ||||||||||
Other comprehensive loss | -453 | 0 | 0 | 0 | -357 | 0 | -357 | -96 | ||||
Net income (loss) | 4,002 | 0 | 0 | 0 | 0 | 3,154 | 3,154 | 848 | ||||
Dividend to shareholders | -6,953 | 0 | 0 | 0 | 0 | -6,953 | -6,953 | 0 | ||||
Distribution to noncontrolling interests | -2,012 | 0 | 0 | 0 | 0 | 0 | 0 | -2,012 | ||||
Ending balance at Dec. 31, 2013 | 399,704 | 0 | 289 | 318,834 | -357 | -3,799 | 314,967 | 84,737 | 399,704 | 399,704 | ||
Ending balance, shares at Dec. 31, 2013 | 0 | 28,973 | 1 | |||||||||
Equity-based compensation expense | 4,153 | 0 | 0 | 3,277 | 0 | 0 | 3,277 | 876 | 4,153 | 4,153 | ||
Partnership distributions | -9,452 | -9,452 | ||||||||||
Reclassify partners' capital | 0 | 0 | 0 | 2,811 | 0 | 0 | 2,811 | -2,811 | ||||
Reclassify partners' capital, shares | 0 | 270 | ||||||||||
Other comprehensive loss | 453 | 0 | 0 | 0 | 357 | 0 | 357 | 96 | 453 | 453 | ||
Net income (loss) | 19,103 | 0 | 0 | 0 | 0 | 15,072 | 15,072 | 4,031 | 19,103 | 19,103 | ||
Issuance of shares through equity award plan | 0 | 0 | 5 | -5 | 0 | 0 | 0 | 0 | ||||
Issuance of shares through equity award plan, shares | 0 | 165 | 165 | |||||||||
Dividend to shareholders | -33,776 | 0 | 0 | 0 | 0 | -33,776 | -33,776 | 0 | -33,776 | -33,776 | ||
Distribution to noncontrolling interests | -9,452 | 0 | 0 | 0 | 0 | 0 | 0 | -9,452 | ||||
Ending balance at Dec. 31, 2014 | $380,185 | $0 | $294 | $324,917 | $0 | ($22,503) | $302,708 | $77,477 | $380,185 | $380,185 | ||
Ending balance, shares at Dec. 31, 2014 | 0 | 29,408 | 1 | 36,935 |
CONSOLIDATED_FINANCIAL_STATEME4
CONSOLIDATED FINANCIAL STATEMENTS STATEMENTS OF CASH FLOW (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Oct. 14, 2013 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 |
Cash flow from operating activities: | |||||
Net income (loss) | $4,002 | $19,103 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||||
Depreciation and amortization | 10,636 | 55,327 | |||
Amortization of deferred loan costs | 496 | 2,673 | |||
Amortization of bond discount | 0 | 98 | |||
Equity-based compensation expense | 578 | 1,369 | 4,153 | 412 | |
Bad debt expense | 371 | 600 | |||
Write off of deferred loan costs | 153 | 870 | |||
Change in fair value of derivative | 0 | 0 | |||
Gain on sale/disposal of property | 0 | 0 | |||
Changes in operating assets and liabilities | |||||
Rents and other receivables, net | -2,419 | -1,745 | |||
Accrued interest on member advances | 0 | 0 | |||
Prepaid expenses | 678 | -1,266 | |||
Restricted cash | 0 | 0 | |||
Other assets | -463 | -73 | |||
Accounts payable and accrued liabilities | 15,061 | -8,663 | |||
Advance rents, security deposits and other liabilities | 6 | 41 | |||
Deferred income | 536 | 2,639 | |||
Net cash provided by operating activities | 29,635 | 73,757 | |||
Cash flow from investing activities: | |||||
Proceeds from sale of property | 0 | 0 | |||
Acquisition of real estate | 0 | -91,064 | |||
Additions to property and equipment | -47,963 | -201,145 | |||
Net cash used in investing activities | -47,963 | -292,209 | |||
Cash flow from financing activities: | |||||
Credit facility proceeds | 14,500 | 270,500 | |||
Debt proceeds | 0 | 0 | |||
Senior Notes proceeds | 0 | 297,633 | |||
Debt repayment | -278,000 | -290,000 | |||
Payment of swap liability | 0 | 0 | |||
Payment of deferred financing costs | -990 | -9,864 | |||
Payment of cash dividend | 0 | -32,198 | |||
Distribution to noncontrolling interest | 0 | -9,049 | |||
Partnership distributions | 0 | 0 | |||
Repurchase of equity awards | 0 | 0 | |||
Principal payments on capital lease obligation | -180 | -753 | |||
Scheduled mortgage principal debt repayments | -359 | -2,239 | |||
Equity proceeds, net of costs | 280,841 | 0 | |||
Net cash provided by financing activities | 15,812 | 224,030 | |||
Net increase (decrease) in cash and cash equivalents | -2,516 | 5,578 | |||
Cash and cash equivalents, beginning of period | 7,726 | 5,210 | |||
Cash and cash equivalents, end of period | 5,210 | 7,726 | 10,788 | 5,210 | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||
Cash paid for interest (excluding deferred financing costs and amounts capitalized) | 1,995 | 4,950 | |||
Noncash investing and financing activities: | |||||
Accrued capital additions | 39,801 | 49,589 | |||
Accrued deferred financing costs | 0 | 2,858 | |||
Accrued equity issuance costs | 364 | 0 | |||
Member advances exchanged for LP units | 0 | 0 | |||
Qualitytech, LP [Member] | |||||
Cash flow from operating activities: | |||||
Net income (loss) | 19,103 | -9,767 | 3,850 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||||
Depreciation and amortization | 55,327 | 33,688 | 45,260 | ||
Amortization of deferred loan costs | 2,673 | 3,384 | 2,777 | ||
Amortization of bond discount | 98 | 0 | 0 | ||
Equity-based compensation expense | 4,153 | 412 | 1,947 | ||
Bad debt expense | 600 | -192 | 545 | ||
Write off of deferred loan costs | 870 | 1,434 | 2,184 | ||
Change in fair value of derivative | 0 | -307 | 0 | ||
Gain on sale/disposal of property | 0 | -948 | 0 | ||
Changes in operating assets and liabilities | |||||
Rents and other receivables, net | -1,745 | -406 | -3,036 | ||
Accrued interest on member advances | 0 | 2,332 | 0 | ||
Prepaid expenses | -1,266 | 58 | -786 | ||
Restricted cash | 0 | 1,294 | 146 | ||
Other assets | -73 | -783 | 23 | ||
Accounts payable and accrued liabilities | -8,663 | 5,322 | 5,827 | ||
Advance rents, security deposits and other liabilities | 41 | -1,586 | 250 | ||
Deferred income | 2,639 | 1,163 | 1,146 | ||
Net cash provided by operating activities | 73,757 | 35,098 | 60,146 | ||
Cash flow from investing activities: | |||||
Proceeds from sale of property | 0 | 1,549 | 0 | ||
Acquisition of real estate | -91,064 | -63,250 | -21,174 | ||
Additions to property and equipment | -201,145 | -133,226 | -147,664 | ||
Net cash used in investing activities | -292,209 | -194,927 | -168,838 | ||
Cash flow from financing activities: | |||||
Credit facility proceeds | 270,500 | 180,000 | 578,000 | ||
Debt proceeds | 0 | 120,000 | 0 | ||
Senior Notes proceeds | 297,633 | 0 | 0 | ||
Debt repayment | -290,000 | -216,637 | -734,994 | ||
Payment of swap liability | 0 | -4,070 | 0 | ||
Payment of deferred financing costs | -9,864 | -6,243 | -5,473 | ||
Payment of cash dividend | -32,198 | 0 | 0 | ||
Partnership distributions | -9,049 | 0 | -7,633 | ||
Repurchase of equity awards | 0 | 0 | -13 | ||
Principal payments on capital lease obligation | -753 | -790 | -676 | ||
Scheduled mortgage principal debt repayments | -2,239 | -3,476 | -2,416 | ||
Equity proceeds, net of costs | 0 | 91,935 | 278,875 | ||
Net cash provided by financing activities | 224,030 | 160,719 | 105,670 | ||
Net increase (decrease) in cash and cash equivalents | 5,578 | 890 | -3,022 | ||
Cash and cash equivalents, beginning of period | 8,232 | 5,210 | 7,342 | 8,232 | |
Cash and cash equivalents, end of period | 5,210 | 10,788 | 8,232 | 5,210 | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||
Cash paid for interest (excluding deferred financing costs and amounts capitalized) | 4,950 | 21,291 | 17,969 | ||
Noncash investing and financing activities: | |||||
Accrued capital additions | 49,589 | 18,789 | 60,740 | ||
Accrued deferred financing costs | 2,858 | 0 | 990 | ||
Accrued equity issuance costs | 0 | 0 | 621 | ||
Member advances exchanged for LP units | 0 | 0 | 10,000 | ||
Historical Predecessor [Member] | |||||
Cash flow from operating activities: | |||||
Net income (loss) | -152 | -9,767 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||||
Depreciation and amortization | 34,624 | 33,688 | |||
Amortization of deferred loan costs | 2,281 | 3,384 | |||
Amortization of bond discount | 0 | 0 | |||
Equity-based compensation expense | 1,382 | 412 | |||
Bad debt expense | 174 | -192 | |||
Write off of deferred loan costs | 2,031 | 1,434 | |||
Change in fair value of derivative | 0 | -307 | |||
Gain on sale/disposal of property | 0 | -948 | |||
Changes in operating assets and liabilities | |||||
Rents and other receivables, net | -617 | -406 | |||
Accrued interest on member advances | 0 | 2,332 | |||
Prepaid expenses | -1,464 | 58 | |||
Restricted cash | 146 | 1,294 | |||
Other assets | 486 | -783 | |||
Accounts payable and accrued liabilities | -9,234 | 5,322 | |||
Advance rents, security deposits and other liabilities | 244 | -1,586 | |||
Deferred income | 610 | 1,163 | |||
Net cash provided by operating activities | 30,511 | 35,098 | |||
Cash flow from investing activities: | |||||
Proceeds from sale of property | 0 | 1,549 | |||
Acquisition of real estate | -21,174 | -63,250 | |||
Additions to property and equipment | -99,701 | -133,226 | |||
Net cash used in investing activities | -120,875 | -194,927 | |||
Cash flow from financing activities: | |||||
Credit facility proceeds | 563,500 | 180,000 | |||
Debt proceeds | 0 | 120,000 | |||
Senior Notes proceeds | 0 | 0 | |||
Debt repayment | -456,994 | -216,637 | |||
Payment of swap liability | 0 | -4,070 | |||
Payment of deferred financing costs | -4,483 | -6,243 | |||
Payment of cash dividend | 0 | 0 | |||
Distribution to noncontrolling interest | 0 | 0 | |||
Partnership distributions | -7,633 | 0 | |||
Repurchase of equity awards | -13 | 0 | |||
Principal payments on capital lease obligation | -496 | -790 | |||
Scheduled mortgage principal debt repayments | -2,057 | -3,476 | |||
Equity proceeds, net of costs | -1,966 | 91,935 | |||
Net cash provided by financing activities | 89,858 | 160,719 | |||
Net increase (decrease) in cash and cash equivalents | -506 | 890 | |||
Cash and cash equivalents, beginning of period | 8,232 | 7,342 | 8,232 | ||
Cash and cash equivalents, end of period | 7,726 | 8,232 | |||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||
Cash paid for interest (excluding deferred financing costs and amounts capitalized) | 15,974 | 21,291 | |||
Noncash investing and financing activities: | |||||
Accrued capital additions | 20,939 | 18,789 | |||
Accrued deferred financing costs | 990 | 0 | |||
Accrued equity issuance costs | 257 | 0 | |||
Member advances exchanged for LP units | $10,000 | $0 |
Description_of_Business
Description of Business | 12 Months Ended |
Dec. 31, 2014 | |
Organization And Description Of Business [Line Items] | |
Description of Business | 1. Description of Business |
QTS Realty Trust, Inc. (“QTS”) through its controlling interest in QualityTech, LP (the “Operating Partnership” and collectively with QTS and their subsidiaries, the “Company”) and the subsidiaries of the Operating Partnership, is engaged in the business of owning, acquiring, redeveloping and managing multi-tenant data centers. The Company’s portfolio consists of 12 properties with data centers located throughout the continental United States. | |
QTS was formed as a Maryland corporation on May 17, 2013. On October 15, 2013, QTS completed its initial public offering of 14,087,500 shares of Class A common stock, $0.01 par value per share (the “IPO”), including shares issued pursuant to the underwriters’ option to purchase additional shares, which was exercised in full, and received net proceeds of approximately $279 million. QTS elected to be taxed as a real estate investment trust (“REIT”), for U.S. federal income tax purposes, commencing with its taxable year ended December 31, 2013. As a REIT, QTS generally is not required to pay federal corporate income taxes on its taxable income to the extent it is currently distributed to its stockholders. | |
Prior to the IPO, QTS had no assets other than cash and deferred offering costs, and had not had any operations other than the issuance of 1,000 shares of common stock to Chad L. Williams in connection with its initial capitalization. The Operating Partnership is a Delaware limited partnership formed on August 5, 2009 and is QTS’ historical predecessor. | |
Concurrently with the completion of the IPO, the Company consummated a series of transactions, including the merger of General Atlantic REIT, Inc. with the Company, pursuant to which it became the sole general partner and majority owner of QualityTech, LP, the Operating Partnership. QTS contributed the net proceeds received from the IPO to the Operating Partnership in exchange for partnership units therein. As of December 31, 2014, QTS owned approximately 79.6% of the interests in the Operating Partnership. Substantially all of QTS’ assets are held by, and QTS’ operations are conducted through, the Operating Partnership. QTS’ interest in the Operating Partnership entitles QTS to share in cash distributions from, and in the profits and losses of, the Operating Partnership in proportion to QTS’ percentage ownership. As the sole general partner of the Operating Partnership, QTS generally has the exclusive power under the partnership agreement of the Operating Partnership to manage and conduct the Operating Partnership’s business and affairs, subject to certain limited approval and voting rights of the limited partners. QTS’ board of directors manages the Company’s business and affairs. | |
Qualitytech, LP [Member] | |
Organization And Description Of Business [Line Items] | |
Description of Business | 1. Description of Business |
QTS Realty Trust, Inc. (“QTS”) through its controlling interest in QualityTech, LP (the “Operating Partnership” and collectively with QTS and their subsidiaries, the “Company”) and the subsidiaries of the Operating Partnership, is engaged in the business of owning, acquiring, redeveloping and managing multi-tenant data centers. The Company’s portfolio consists of 12 properties with data centers located throughout the continental United States. | |
QTS was formed as a Maryland corporation on May 17, 2013. On October 15, 2013, QTS completed its initial public offering of 14,087,500 shares of Class A common stock, $0.01 par value per share (the “IPO”), including shares issued pursuant to the underwriters’ option to purchase additional shares, which was exercised in full, and received net proceeds of approximately $279 million. QTS elected to be taxed as a real estate investment trust (“REIT”), for U.S. federal income tax purposes, commencing with its taxable year ended December 31, 2013. As a REIT, QTS generally is not required to pay federal corporate income taxes on its taxable income to the extent it is currently distributed to its stockholders. | |
Prior to the IPO, QTS had no assets other than cash and deferred offering costs, and had not had any operations other than the issuance of 1,000 shares of common stock to Chad L. Williams in connection with its initial capitalization. The Operating Partnership is a Delaware limited partnership formed on August 5, 2009 and is QTS’ historical predecessor. | |
Concurrently with the completion of the IPO, the Company consummated a series of transactions, including the merger of General Atlantic REIT, Inc. with the Company, pursuant to which it became the sole general partner and majority owner of QualityTech, LP, the Operating Partnership. QTS contributed the net proceeds received from the IPO to the Operating Partnership in exchange for partnership units therein. As of December 31, 2014, QTS owned approximately 79.6% of the interests in the Operating Partnership. Substantially all of QTS’ assets are held by, and QTS’ operations are conducted through, the Operating Partnership. QTS’ interest in the Operating Partnership entitles QTS to share in cash distributions from, and in the profits and losses of, the Operating Partnership in proportion to QTS’ percentage ownership. As the sole general partner of the Operating Partnership, QTS generally has the exclusive power under the partnership agreement of the Operating Partnership to manage and conduct the Operating Partnership’s business and affairs, subject to certain limited approval and voting rights of the limited partners. QTS’ board of directors manages the Company’s business and affairs. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies | ||||||||||||||||
Basis of Presentation — The accompanying financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. | |||||||||||||||||
The accompanying financial statements are presented for both QTS Realty Trust, Inc. and QualityTech, LP. References to “QTS” mean QTS Realty Trust, Inc. and its controlled subsidiaries; and references to the “Operating Partnership” mean QualityTech, LP and its controlled subsidiaries. | |||||||||||||||||
Management operates QTS and the Operating Partnership as one business. The management of QTS consists of the same employees as the management of the Operating Partnership. QTS is the sole general partner of the Operating Partnership, and its only material asset consisted of its ownership interest in the Operating Partnership. QTS does not conduct business itself, other than acting as the sole general partner of the Operating Partnership and issuing public equity from time to time. QTS has not issued or guaranteed any indebtedness. Except for net proceeds from public equity issuances by QTS, which are contributed to the Operating Partnership in exchange for units of limited partnership interest of the Operating Partnership, the Operating Partnership generates all remaining capital required by our business through its operations, the direct or indirect incurrence of indebtedness, and the issuance of partnership units. Therefore, as general partner with control of the Operating Partnership, QTS consolidates the Operating Partnership for financial reporting purposes. | |||||||||||||||||
The Company believes, therefore, that providing one set of notes for the financial statements of QTS and the Operating Partnership provides the following benefits: | |||||||||||||||||
• | enhances investors’ understanding of QTS and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business; | ||||||||||||||||
• | eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the disclosure applies to both QTS and the Operating Partnership; and | ||||||||||||||||
• | creates time and cost efficiencies through the preparation of one set of notes instead of two separate sets of notes. | ||||||||||||||||
In addition, in light of these combined notes, the Company believes it is important for investors to understand the few differences between QTS and the Operating Partnership in the context of how QTS and the Operating Partnership operate as a consolidated company. The presentation of stockholders’ equity and partners’ capital are the main areas of difference between the consolidated balance sheets of QTS and those of the Operating Partnership. The Operating Partnership’s capital includes general and limited common units that are owned by QTS and the other partners. QTS’ stockholders’ equity includes common stock, additional paid in capital, accumulated other comprehensive income (loss) and accumulated dividends in excess of earnings. The remaining equity is the portion of net assets that are retained by partners other than QTS, referred to as noncontrolling interests. The primary difference in QTS’ Statements of Operations and Comprehensive Income (Loss) is that for net income (loss), QTS retains its proportionate share of the net income (loss) based on its ownership of the Operating Partnership, with the remaining balance being retained by the Operating Partnership. These combined notes refer to actions or holdings as being actions or holdings of “the Company.” Although the Operating Partnership is generally the entity that enters into contracts, holds assets and issues debt, management believes that these general references to “the Company” in this context is appropriate because the business is one enterprise operated through the Operating Partnership. | |||||||||||||||||
As discussed above, QTS owns no operating assets and has no operations independent of the Operating Partnership and its subsidiaries. Obligations under the 5.875% Senior Notes due 2022 and the unsecured credit facility, both discussed in Note 5, are fully, unconditionally, and jointly and severally guaranteed by the Operating Partnership’s existing subsidiaries, other than QTS Finance Corporation, the co-issuer of the 5.875% Senior Notes due 2022. As such, condensed consolidating financial information for the guarantors is not being presented in the notes to the condensed consolidated financial statements. However, the indenture governing the 5.875% Senior Notes due 2022 restricts the ability of the Operating Partnership to make distributions to QTS, subject to certain exceptions, including distributions required in order for QTS to maintain its status as a real estate investment trust under the Internal Revenue Code of 1986, as amended. | |||||||||||||||||
The consolidated financial statements of QTS Realty Trust, Inc. for the period from October 15, 2013 through December 31, 2014 include the accounts of QTS Realty Trust, Inc. and its majority owned subsidiaries. This includes the operating results of the Operating Partnership for the period from October 15, 2013 through December 31, 2013. While the Company was formed on May 17, 2013, the Company had no independent operations prior to October 15, 2013. The historical predecessor financial statements for the periods ended October 14, 2013 and December 31, 2012 include the accounts of QualityTech, LP and its majority owned subsidiaries. | |||||||||||||||||
Use of Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of fixed assets, allowances for doubtful accounts and deferred tax assets and the valuation of derivatives, real estate assets, acquired intangible assets and certain accruals. | |||||||||||||||||
Principles of Consolidation — The consolidated financial statements of QTS Realty Trust, Inc. include the accounts of QTS Realty Trust, Inc. and its majority-owned subsidiaries. The consolidated financial statements of QualityTech, LP include the accounts of QualityTech, LP and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in the financial statements. | |||||||||||||||||
Real Estate Assets — Real estate assets are reported at cost. All capital improvements for the income-producing properties that extend their useful lives are capitalized to individual property improvements and depreciated over their estimated useful lives. Depreciation for real estate assets is generally provided on a straight-line basis over 40 years from the date the property was placed in service. Property improvements are depreciated on a straight-line basis over the life of the respective improvement ranging from 20 to 40 years from the date the components were placed in service. Leasehold improvements are depreciated over the lesser of 20 years or through the end of the respective life of the lease. Repairs and maintenance costs are expensed as incurred. Depreciation expense was $45.4 million, $36.7 million and $29.8 million for the years ended December 31, 2014, 2013 and 2012, 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 $10.6 million, $8.5 million and $6.7 million for the years ended December 31, 2014, 2013 and 2012, respectively. Interest is capitalized during the period of development by first applying the Company’s actual borrowing rate on the related asset and second, to the extent necessary, by applying the Company’s weighted average effective borrowing rate to the actual 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 $6.5 million, $4.1 million and $2.2 million for the years ended December 31, 2014, 2013 and 2012, 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 with the accounting requirements of ASC 805, Business Combinations, which requires the recording of net assets of acquired businesses at fair value. The fair value of the 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 totaled $2.2 million and $2.6 million for the years ended December 31, 2014 and 2013, respectively, with no material amortization for the year ended December 31, 2012. | |||||||||||||||||
Acquired customer relationships are amortized as amortization expense on a straight-line basis over the expected life of the customer relationship. Amortization of acquired customer relationships totaled $1.3 million, $1.5 million and $0.6 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||
See Note 3 for discussion of the preliminary purchase price allocation for the Princeton 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 any of the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||
Cash and Cash Equivalents — The Company considers all demand deposits and money market accounts purchased with a maturity date of three months or less at the date of purchase to be cash equivalents. The Company’s account balances at one or more institutions periodically exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance coverage and, as a result, there is concentration of credit risk related to amounts on deposit in excess of FDIC coverage. The Company mitigates this risk by depositing a majority of its funds with several major financial institutions. The Company also has not experienced any losses and, therefore, does not believe that the risk is significant. | |||||||||||||||||
Restricted Cash — Restricted cash includes accounts restricted by the Company’s loan agreements and escrow deposits for interest, insurance, taxes and capital improvements held by the various banks and financial institutions as required by the loan agreements. Such deposits are held in bank checking or investment accounts with original maturities of three months or less. | |||||||||||||||||
Deferred Costs — Deferred costs, net, on the Company’s balance sheets include both financing costs and leasing costs. | |||||||||||||||||
Deferred financing costs represent fees and other costs incurred in connection with obtaining debt and are amortized over the term of the loan and are included in interest expense. Amortization of the deferred financing costs was $2.7 million, $2.8 million and $3.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. During the year ended December 31, 2014, the Company wrote off unamortized financing costs of $0.9 million primarily in connection with paying down $75 million of its unsecured credit facility, as well as modifying the unsecured credit facility in December 2014. In addition, the Company also made modifications to its Richmond credit facility which resulted in the write off of certain deferred financing costs. During the year ended December 31, 2013, the Company wrote off unamortized financing costs of $2.2 million in connection with the expansion of its revolving and term credit facilities. In addition, during the year ended December 31, 2013, the Company wrote off unamortized financing costs of $1.3 million in connection with an asset securitization which the Company stopped pursuing due to the expansion of the credit facility. Deferred financing costs, net of accumulated amortization are as follows: | |||||||||||||||||
(dollars in thousands) | December 31, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Deferred financing costs | $ | 18,152 | $ | 9,159 | |||||||||||||
Accumulated amortization | (1,683 | ) | (1,867 | ) | |||||||||||||
Deferred financing costs, net | $ | 16,469 | $ | 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 $6.4 million, $4.7 million and $3.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. Deferred leasing costs, net of accumulated amortization are as follows (excluding $3.2 million related to a leasing arrangement at the Company’s Princeton facility in 2014): | |||||||||||||||||
(dollars in thousands) | December 31, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Deferred leasing costs | $ | 26,799 | $ | 17,374 | |||||||||||||
Accumulated amortization | (9,378 | ) | (5,516 | ) | |||||||||||||
Deferred leasing costs, net | $ | 17,421 | $ | 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 $10.5 million, $7.9 million and $6.8 million as of December 31, 2014, 2013 and 2012, respectively. Additionally, $4.7 million, $4.7 million and $4.3 million of deferred income were amortized into revenue for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||
Interest Rate Derivative Instruments — The Company utilizes derivatives to manage its interest rate exposure. During February 2012, the Company entered into interest rate swaps with a notional amount of $150 million which were cash flow hedges and qualified for hedge accounting. For these hedges, the effective portion of the change in fair value was recognized through other comprehensive income or loss. Amounts were reclassified out of other comprehensive income (loss) as the hedged item was recognized in earnings, either for ineffectiveness or for amounts paid relating to the hedge. The Company reflected all changes in the fair value of the swaps in other comprehensive income (loss) during the year ended December 31, 2014, as there was no ineffectiveness recorded in that period. The Company’s interest rate swaps matured on September 28, 2014, and as such, there are no amounts outstanding on the consolidated balance sheet at December 31, 2014 relating to these swaps. | |||||||||||||||||
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 $4.2 million, $2.0 million and $0.4 million for the years ended December 31, 2014, 2013 and 2012, 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 $4.0 million and $2.9 million as of December 31, 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 $3.7 million and $0.9 million as of December 31, 2014 and 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 $13.1 million and $2.5 million as of December 31, 2014 and 2013, respectively. The value of the assets associated with these leases approximates the outstanding obligations as of December 31, 2014 and 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 December 31, 2014, one of the Company’s customers represented 9.0% of its total monthly rental revenue. No other customers exceeded 5% of total monthly rental revenue. | |||||||||||||||||
As of December 31, 2014, five of the Company’s customers exceeded 5% of total accounts receivable. In aggregate, these five customers accounted for 67% of total accounts receivable. Two of these five customers accounted for 32% and 18%, respectively, of total accounts receivable. | |||||||||||||||||
Income Taxes — The Company elected for one of its existing subsidiaries to be taxed as a taxable REIT subsidiary pursuant to the REIT rules of the U.S. Internal Revenue Code. | |||||||||||||||||
For the taxable REIT 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 taxable REIT subsidiary offsets a valuation allowance against deferred tax assets if, based on management’s assessment of operating results and other available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The taxable subsidiary did not generate taxable income for the years ended December 31, 2014, 2013 or 2012. Accordingly, no provision for income taxes was recorded nor was an income tax benefit recorded for the last five years. Due to the lack of sufficient historical evidence to indicate it is more likely than not that the deferred tax assets will be utilized, the valuation allowance relating to deferred tax assets continues to be recorded at December 31, 2014. The change in valuation allowance during 2014 was an increase of $2.0 million to $3.4 million. | |||||||||||||||||
Temporary differences and carry forwards which give rise to the deferred tax assets and liabilities are as follows: | |||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Deferred tax liabilities | |||||||||||||||||
Property and equipment | $ | (5,784 | ) | $ | (4,905 | ) | $ | (4,852 | ) | ||||||||
Other | (1,427 | ) | (873 | ) | (551 | ) | |||||||||||
Gross deferred tax liabilities | (7,211 | ) | (5,778 | ) | (5,403 | ) | |||||||||||
Deferred tax assets | |||||||||||||||||
Net operating loss carryforwards | 9,137 | 5,861 | 6,694 | ||||||||||||||
Deferred revenue and setup charges | 868 | 583 | 467 | ||||||||||||||
Derivative liability | — | — | — | ||||||||||||||
Other | 601 | 699 | 113 | ||||||||||||||
Gross deferred tax assets | 10,606 | 7,143 | 7,274 | ||||||||||||||
Net deferred tax assets | 3,395 | 1,365 | 1,871 | ||||||||||||||
Valuation allowance | (3,395 | ) | (1,365 | ) | (1,871 | ) | |||||||||||
Net deferred | $ | — | $ | — | $ | — | |||||||||||
The taxable REIT subsidiary currently has $24.1 million of net operating loss carryforwards related to federal income taxes that expire in 15 – 20 years. The taxable REIT subsidiary also has $20.1 million of net operating loss carryforwards relating to state income taxes that expire in 5 – 20 years. | |||||||||||||||||
As of December 31, 2014 and 2013, the Company has no uncertain tax positions. If the Company incurs any interest or penalties on tax liabilities from significant uncertain tax positions, those items will be classified as interest expense and general and administrative expense, respectively, in the Statements of Operations and Comprehensive Income (Loss). For the years ended December 31, 2014, 2013 and 2012, the Company had no such interest or penalties. | |||||||||||||||||
The Company is not currently under examination by the Internal Revenue Service. | |||||||||||||||||
Fair Value Measurements — ASC Topic 820, Fair Value 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 December 31, 2014 and 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 December 31, 2014 and 2013 (dollars in thousands): | |||||||||||||||||
Carrying | Fair Value Measurements | ||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
31-Dec-14 | |||||||||||||||||
Financial Liabilities: | |||||||||||||||||
Interest rate swap liability(1) | $ | — | $ | — | $ | — | $ | — | |||||||||
31-Dec-13 | |||||||||||||||||
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 at December 31, 2013. The fair value measurement of the interest rate swaps have been classified as Level 2. The swaps matured on September 28, 2014, and as such, there were no amounts outstanding on the consolidated balance sheet as of December 31, 2014 related to interest rate swaps. | ||||||||||||||||
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. | |||||||||||||||||
Qualitytech, LP [Member] | |||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies | ||||||||||||||||
Basis of Presentation — The accompanying financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. | |||||||||||||||||
The accompanying financial statements are presented for both QTS Realty Trust, Inc. and QualityTech, LP. References to “QTS” mean QTS Realty Trust, Inc. and its controlled subsidiaries; and references to the “Operating Partnership” mean QualityTech, LP and its controlled subsidiaries. | |||||||||||||||||
Management operates QTS and the Operating Partnership as one business. The management of QTS consists of the same employees as the management of the Operating Partnership. QTS is the sole general partner of the Operating Partnership, and its only material asset consisted of its ownership interest in the Operating Partnership. QTS does not conduct business itself, other than acting as the sole general partner of the Operating Partnership and issuing public equity from time to time. QTS has not issued or guaranteed any indebtedness. Except for net proceeds from public equity issuances by QTS, which are contributed to the Operating Partnership in exchange for units of limited partnership interest of the Operating Partnership, the Operating Partnership generates all remaining capital required by our business through its operations, the direct or indirect incurrence of indebtedness, and the issuance of partnership units. Therefore, as general partner with control of the Operating Partnership, QTS consolidates the Operating Partnership for financial reporting purposes. | |||||||||||||||||
The Company believes, therefore, that providing one set of notes for the financial statements of QTS and the Operating Partnership provides the following benefits: | |||||||||||||||||
• | enhances investors’ understanding of QTS and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business; | ||||||||||||||||
• | eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the disclosure applies to both QTS and the Operating Partnership; and | ||||||||||||||||
• | creates time and cost efficiencies through the preparation of one set of notes instead of two separate sets of notes. | ||||||||||||||||
In addition, in light of these combined notes, the Company believes it is important for investors to understand the few differences between QTS and the Operating Partnership in the context of how QTS and the Operating Partnership operate as a consolidated company. The presentation of stockholders’ equity and partners’ capital are the main areas of difference between the consolidated balance sheets of QTS and those of the Operating Partnership. The Operating Partnership’s capital includes general and limited common units that are owned by QTS and the other partners. QTS’ stockholders’ equity includes common stock, additional paid in capital, accumulated other comprehensive income (loss) and accumulated dividends in excess of earnings. The remaining equity is the portion of net assets that are retained by partners other than QTS, referred to as noncontrolling interests. The primary difference in QTS’ Statements of Operations and Comprehensive Income (Loss) is that for net income (loss), QTS retains its proportionate share of the net income (loss) based on its ownership of the Operating Partnership, with the remaining balance being retained by the Operating Partnership. These combined notes refer to actions or holdings as being actions or holdings of “the Company.” Although the Operating Partnership is generally the entity that enters into contracts, holds assets and issues debt, management believes that these general references to “the Company” in this context is appropriate because the business is one enterprise operated through the Operating Partnership. | |||||||||||||||||
As discussed above, QTS owns no operating assets and has no operations independent of the Operating Partnership and its subsidiaries. Obligations under the 5.875% Senior Notes due 2022 and the unsecured credit facility, both discussed in Note 5, are fully, unconditionally, and jointly and severally guaranteed by the Operating Partnership’s existing subsidiaries, other than QTS Finance Corporation, the co-issuer of the 5.875% Senior Notes due 2022. As such, condensed consolidating financial information for the guarantors is not being presented in the notes to the condensed consolidated financial statements. However, the indenture governing the 5.875% Senior Notes due 2022 restricts the ability of the Operating Partnership to make distributions to QTS, subject to certain exceptions, including distributions required in order for QTS to maintain its status as a real estate investment trust under the Internal Revenue Code of 1986, as amended. | |||||||||||||||||
The consolidated financial statements of QTS Realty Trust, Inc. for the period from October 15, 2013 through December 31, 2014 include the accounts of QTS Realty Trust, Inc. and its majority owned subsidiaries. This includes the operating results of the Operating Partnership for the period from October 15, 2013 through December 31, 2013. While the Company was formed on May 17, 2013, the Company had no independent operations prior to October 15, 2013. The historical predecessor financial statements for the periods ended October 14, 2013 and December 31, 2012 include the accounts of QualityTech, LP and its majority owned subsidiaries. | |||||||||||||||||
Use of Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of fixed assets, allowances for doubtful accounts and deferred tax assets and the valuation of derivatives, real estate assets, acquired intangible assets and certain accruals. | |||||||||||||||||
Principles of Consolidation — The consolidated financial statements of QTS Realty Trust, Inc. include the accounts of QTS Realty Trust, Inc. and its majority-owned subsidiaries. The consolidated financial statements of QualityTech, LP include the accounts of QualityTech, LP and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in the financial statements. | |||||||||||||||||
Real Estate Assets — Real estate assets are reported at cost. All capital improvements for the income-producing properties that extend their useful lives are capitalized to individual property improvements and depreciated over their estimated useful lives. Depreciation for real estate assets is generally provided on a straight-line basis over 40 years from the date the property was placed in service. Property improvements are depreciated on a straight-line basis over the life of the respective improvement ranging from 20 to 40 years from the date the components were placed in service. Leasehold improvements are depreciated over the lesser of 20 years or through the end of the respective life of the lease. Repairs and maintenance costs are expensed as incurred. Depreciation expense was $45.4 million, $36.7 million and $29.8 million for the years ended December 31, 2014, 2013 and 2012, 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 $10.6 million, $8.5 million and $6.7 million for the years ended December 31, 2014, 2013 and 2012, respectively. Interest is capitalized during the period of development by first applying the Company’s actual borrowing rate on the related asset and second, to the extent necessary, by applying the Company’s weighted average effective borrowing rate to the actual 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 $6.5 million, $4.1 million and $2.2 million for the years ended December 31, 2014, 2013 and 2012, 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 with the accounting requirements of ASC 805, Business Combinations, which requires the recording of net assets of acquired businesses at fair value. The fair value of the 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 totaled $2.2 million and $2.6 million for the years ended December 31, 2014 and 2013, respectively, with no material amortization for the year ended December 31, 2012. | |||||||||||||||||
Acquired customer relationships are amortized as amortization expense on a straight-line basis over the expected life of the customer relationship. Amortization of acquired customer relationships totaled $1.3 million, $1.5 million and $0.6 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||
See Note 3 for discussion of the preliminary purchase price allocation for the Princeton 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 any of the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||
Cash and Cash Equivalents — The Company considers all demand deposits and money market accounts purchased with a maturity date of three months or less at the date of purchase to be cash equivalents. The Company’s account balances at one or more institutions periodically exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance coverage and, as a result, there is concentration of credit risk related to amounts on deposit in excess of FDIC coverage. The Company mitigates this risk by depositing a majority of its funds with several major financial institutions. The Company also has not experienced any losses and, therefore, does not believe that the risk is significant. | |||||||||||||||||
Restricted Cash — Restricted cash includes accounts restricted by the Company’s loan agreements and escrow deposits for interest, insurance, taxes and capital improvements held by the various banks and financial institutions as required by the loan agreements. Such deposits are held in bank checking or investment accounts with original maturities of three months or less. | |||||||||||||||||
Deferred Costs — Deferred costs, net, on the Company’s balance sheets include both financing costs and leasing costs. | |||||||||||||||||
Deferred financing costs represent fees and other costs incurred in connection with obtaining debt and are amortized over the term of the loan and are included in interest expense. Amortization of the deferred financing costs was $2.7 million, $2.8 million and $3.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. During the year ended December 31, 2014, the Company wrote off unamortized financing costs of $0.9 million primarily in connection with paying down $75 million of its unsecured credit facility, as well as modifying the unsecured credit facility in December 2014. In addition, the Company also made modifications to its Richmond credit facility which resulted in the write off of certain deferred financing costs. During the year ended December 31, 2013, the Company wrote off unamortized financing costs of $2.2 million in connection with the expansion of its revolving and term credit facilities. In addition, during the year ended December 31, 2013, the Company wrote off unamortized financing costs of $1.3 million in connection with an asset securitization which the Company stopped pursuing due to the expansion of the credit facility. Deferred financing costs, net of accumulated amortization are as follows: | |||||||||||||||||
(dollars in thousands) | December 31, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Deferred financing costs | $ | 18,152 | $ | 9,159 | |||||||||||||
Accumulated amortization | (1,683 | ) | (1,867 | ) | |||||||||||||
Deferred financing costs, net | $ | 16,469 | $ | 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 $6.4 million, $4.7 million and $3.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. Deferred leasing costs, net of accumulated amortization are as follows (excluding $3.2 million related to a leasing arrangement at the Company’s Princeton facility in 2014): | |||||||||||||||||
(dollars in thousands) | December 31, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Deferred leasing costs | $ | 26,799 | $ | 17,374 | |||||||||||||
Accumulated amortization | (9,378 | ) | (5,516 | ) | |||||||||||||
Deferred leasing costs, net | $ | 17,421 | $ | 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 $10.5 million, $7.9 million and $6.8 million as of December 31, 2014, 2013 and 2012, respectively. Additionally, $4.7 million, $4.7 million and $4.3 million of deferred income were amortized into revenue for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||
Interest Rate Derivative Instruments — The Company utilizes derivatives to manage its interest rate exposure. During February 2012, the Company entered into interest rate swaps with a notional amount of $150 million which were cash flow hedges and qualified for hedge accounting. For these hedges, the effective portion of the change in fair value was recognized through other comprehensive income or loss. Amounts were reclassified out of other comprehensive income (loss) as the hedged item was recognized in earnings, either for ineffectiveness or for amounts paid relating to the hedge. The Company reflected all changes in the fair value of the swaps in other comprehensive income (loss) during the year ended December 31, 2014, as there was no ineffectiveness recorded in that period. The Company’s interest rate swaps matured on September 28, 2014, and as such, there are no amounts outstanding on the consolidated balance sheet at December 31, 2014 relating to these swaps. | |||||||||||||||||
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 $4.2 million, $2.0 million and $0.4 million for the years ended December 31, 2014, 2013 and 2012, 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 $4.0 million and $2.9 million as of December 31, 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 $3.7 million and $0.9 million as of December 31, 2014 and 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 $13.1 million and $2.5 million as of December 31, 2014 and 2013, respectively. The value of the assets associated with these leases approximates the outstanding obligations as of December 31, 2014 and 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 December 31, 2014, one of the Company’s customers represented 9.0% of its total monthly rental revenue. No other customers exceeded 5% of total monthly rental revenue. | |||||||||||||||||
As of December 31, 2014, five of the Company’s customers exceeded 5% of total accounts receivable. In aggregate, these five customers accounted for 67% of total accounts receivable. Two of these five customers accounted for 32% and 18%, respectively, of total accounts receivable. | |||||||||||||||||
Income Taxes — The Company elected for one of its existing subsidiaries to be taxed as a taxable REIT subsidiary pursuant to the REIT rules of the U.S. Internal Revenue Code. | |||||||||||||||||
For the taxable REIT 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 taxable REIT subsidiary offsets a valuation allowance against deferred tax assets if, based on management’s assessment of operating results and other available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The taxable subsidiary did not generate taxable income for the years ended December 31, 2014, 2013 or 2012. Accordingly, no provision for income taxes was recorded nor was an income tax benefit recorded for the last five years. Due to the lack of sufficient historical evidence to indicate it is more likely than not that the deferred tax assets will be utilized, the valuation allowance relating to deferred tax assets continues to be recorded at December 31, 2014. The change in valuation allowance during 2014 was an increase of $2.0 million to $3.4 million. | |||||||||||||||||
Temporary differences and carry forwards which give rise to the deferred tax assets and liabilities are as follows: | |||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Deferred tax liabilities | |||||||||||||||||
Property and equipment | $ | (5,784 | ) | $ | (4,905 | ) | $ | (4,852 | ) | ||||||||
Other | (1,427 | ) | (873 | ) | (551 | ) | |||||||||||
Gross deferred tax liabilities | (7,211 | ) | (5,778 | ) | (5,403 | ) | |||||||||||
Deferred tax assets | |||||||||||||||||
Net operating loss carryforwards | 9,137 | 5,861 | 6,694 | ||||||||||||||
Deferred revenue and setup charges | 868 | 583 | 467 | ||||||||||||||
Derivative liability | — | — | — | ||||||||||||||
Other | 601 | 699 | 113 | ||||||||||||||
Gross deferred tax assets | 10,606 | 7,143 | 7,274 | ||||||||||||||
Net deferred tax assets | 3,395 | 1,365 | 1,871 | ||||||||||||||
Valuation allowance | (3,395 | ) | (1,365 | ) | (1,871 | ) | |||||||||||
Net deferred | $ | — | $ | — | $ | — | |||||||||||
The taxable REIT subsidiary currently has $24.1 million of net operating loss carryforwards related to federal income taxes that expire in 15 – 20 years. The taxable REIT subsidiary also has $20.1 million of net operating loss carryforwards relating to state income taxes that expire in 5 – 20 years. | |||||||||||||||||
As of December 31, 2014 and 2013, the Company has no uncertain tax positions. If the Company incurs any interest or penalties on tax liabilities from significant uncertain tax positions, those items will be classified as interest expense and general and administrative expense, respectively, in the Statements of Operations and Comprehensive Income (Loss). For the years ended December 31, 2014, 2013 and 2012, the Company had no such interest or penalties. | |||||||||||||||||
The Company is not currently under examination by the Internal Revenue Service. | |||||||||||||||||
Fair Value Measurements — ASC Topic 820, Fair Value 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 December 31, 2014 and 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 December 31, 2014 and 2013 (dollars in thousands): | |||||||||||||||||
Carrying | Fair Value Measurements | ||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
31-Dec-14 | |||||||||||||||||
Financial Liabilities: | |||||||||||||||||
Interest rate swap liability(1) | $ | — | $ | — | $ | — | $ | — | |||||||||
31-Dec-13 | |||||||||||||||||
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 at December 31, 2013. The fair value measurement of the interest rate swaps have been classified as Level 2. The swaps matured on September 28, 2014, and as such, there were no amounts outstanding on the consolidated balance sheet as of December 31, 2014 related to interest rate swaps. | ||||||||||||||||
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. | |||||||||||||||||
Acquisitions_of_Real_Estate
Acquisitions of Real Estate | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquisition of Real Estate | 3. Acquisitions of Real Estate | ||||||||
(All references to square footage, acres and megawatts are unaudited) | |||||||||
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 consists of approximately 317,000 gross square feet with capacity for approximately 133,000 square feet of raised floor and 24 megawatts (“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 revolving credit facility. In accordance with ASC 805, Business Combinations, the Company accounted for this acquisition as an asset acquisition. | |||||||||
On June 30, 2014 the Company completed the acquisition of a data center facility in New Jersey (the “Princeton facility”), 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 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 Company acquired the Princeton facility on June 30, 2014. The Company is valuing the assets acquired using Level 3 inputs. | |||||||||
The following table summarizes the consideration for the Princeton facility and the preliminary allocation of the fair value of assets acquired as of December 31, 2014 (in thousands): | |||||||||
Princeton facility | Weighted | ||||||||
as of | average | ||||||||
December 31, | useful life | ||||||||
2014 | |||||||||
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 | |||||||
Qualitytech, LP [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquisition of Real Estate | 3. Acquisitions of Real Estate | ||||||||
(All references to square footage, acres and megawatts are unaudited) | |||||||||
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 consists of approximately 317,000 gross square feet with capacity for approximately 133,000 square feet of raised floor and 24 megawatts (“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 revolving credit facility. In accordance with ASC 805, Business Combinations, the Company accounted for this acquisition as an asset acquisition. | |||||||||
On June 30, 2014 the Company completed the acquisition of a data center facility in New Jersey (the “Princeton facility”), 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 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 Company acquired the Princeton facility on June 30, 2014. The Company is valuing the assets acquired using Level 3 inputs. | |||||||||
The following table summarizes the consideration for the Princeton facility and the preliminary allocation of the fair value of assets acquired as of December 31, 2014 (in thousands): | |||||||||
Princeton facility | Weighted | ||||||||
as of | average | ||||||||
December 31, | useful life | ||||||||
2014 | |||||||||
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_Constru
Real Estate Assets and Construction in Progress | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Real Estate Properties [Line Items] | |||||||||||||||||
Real Estate Assets and Construction in Progress | 4. Real Estate Assets and Construction in Progress | ||||||||||||||||
The following is a summary of properties owned or leased by the Company as of December 31, 2014 and 2013 (in thousands): | |||||||||||||||||
As of December 31, 2014: | |||||||||||||||||
Property Location | Land | Buildings and | Construction | Total Cost | |||||||||||||
Improvements | in Progress | ||||||||||||||||
Owned Properties | |||||||||||||||||
Suwanee, Georgia (Atlanta-Suwanee) | $ | 3,521 | $ | 138,991 | 6,345 | $ | 148,857 | ||||||||||
Atlanta, Georgia (Atlanta-Metro) | 15,397 | 356,122 | 22,693 | 394,212 | |||||||||||||
Santa Clara, California* | — | 90,332 | 650 | 90,982 | |||||||||||||
Richmond, Virginia | 2,180 | 127,080 | 71,794 | 201,054 | |||||||||||||
Sacramento, California | 1,481 | 60,094 | 278 | 61,853 | |||||||||||||
Princeton, New Jersey | 17,976 | 35,951 | 90 | 54,017 | |||||||||||||
Dallas-Fort Worth, Texas | 5,808 | 44,053 | 89,982 | 139,843 | |||||||||||||
Chicago, Illinois | — | — | 21,786 | 21,786 | |||||||||||||
Miami, Florida | 1,777 | 28,786 | 129 | 30,692 | |||||||||||||
Lenexa, Kansas | 437 | 3,298 | 25 | 3,760 | |||||||||||||
Wichita, Kansas | — | 1,409 | — | 1,409 | |||||||||||||
48,577 | 886,116 | 213,772 | 1,148,465 | ||||||||||||||
Leased Properties | |||||||||||||||||
Jersey City, New Jersey | — | 27,318 | 920 | 28,238 | |||||||||||||
Overland Park, Kansas | — | 852 | ** | 27 | 879 | ||||||||||||
— | 28,170 | 947 | 29,117 | ||||||||||||||
$ | 48,577 | $ | 914,286 | $ | 214,719 | $ | 1,177,582 | ||||||||||
* | Owned facility subject to long-term ground sublease. | ||||||||||||||||
** | This does not include the portion of the business that is used for QTS office space or other real estate not used by customers. | ||||||||||||||||
As of December 31, 2013: | |||||||||||||||||
Property Location | Land | Buildings and | Construction | Total Cost | |||||||||||||
Improvements | in 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-Fort Worth, 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. | ||||||||||||||||
** | This does not include the portion of the business that is used for QTS office space or other real estate not used by customers. | ||||||||||||||||
Qualitytech, LP [Member] | |||||||||||||||||
Real Estate Properties [Line Items] | |||||||||||||||||
Real Estate Assets and Construction in Progress | 4. Real Estate Assets and Construction in Progress | ||||||||||||||||
The following is a summary of properties owned or leased by the Company as of December 31, 2014 and 2013 (in thousands): | |||||||||||||||||
As of December 31, 2014: | |||||||||||||||||
Property Location | Land | Buildings and | Construction | Total Cost | |||||||||||||
Improvements | in Progress | ||||||||||||||||
Owned Properties | |||||||||||||||||
Suwanee, Georgia (Atlanta-Suwanee) | $ | 3,521 | $ | 138,991 | 6,345 | $ | 148,857 | ||||||||||
Atlanta, Georgia (Atlanta-Metro) | 15,397 | 356,122 | 22,693 | 394,212 | |||||||||||||
Santa Clara, California* | — | 90,332 | 650 | 90,982 | |||||||||||||
Richmond, Virginia | 2,180 | 127,080 | 71,794 | 201,054 | |||||||||||||
Sacramento, California | 1,481 | 60,094 | 278 | 61,853 | |||||||||||||
Princeton, New Jersey | 17,976 | 35,951 | 90 | 54,017 | |||||||||||||
Dallas-Fort Worth, Texas | 5,808 | 44,053 | 89,982 | 139,843 | |||||||||||||
Chicago, Illinois | — | — | 21,786 | 21,786 | |||||||||||||
Miami, Florida | 1,777 | 28,786 | 129 | 30,692 | |||||||||||||
Lenexa, Kansas | 437 | 3,298 | 25 | 3,760 | |||||||||||||
Wichita, Kansas | — | 1,409 | — | 1,409 | |||||||||||||
48,577 | 886,116 | 213,772 | 1,148,465 | ||||||||||||||
Leased Properties | |||||||||||||||||
Jersey City, New Jersey | — | 27,318 | 920 | 28,238 | |||||||||||||
Overland Park, Kansas | — | 852 | ** | 27 | 879 | ||||||||||||
— | 28,170 | 947 | 29,117 | ||||||||||||||
$ | 48,577 | $ | 914,286 | $ | 214,719 | $ | 1,177,582 | ||||||||||
* | Owned facility subject to long-term ground sublease. | ||||||||||||||||
** | This does not include the portion of the business that is used for QTS office space or other real estate not used by customers. | ||||||||||||||||
As of December 31, 2013: | |||||||||||||||||
Property Location | Land | Buildings and | Construction | Total Cost | |||||||||||||
Improvements | in 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-Fort Worth, 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. | ||||||||||||||||
** | This does not include the portion of the business that is used for QTS office space or other real estate not used by customers. | ||||||||||||||||
Credit_Facilities_Senior_Notes
Credit Facilities, Senior Notes and Mortgage Notes Payable | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit Facilities Senior Notes and Mortgage Notes Payable | 5. Credit Facilities, Senior Notes and Mortgage Notes Payable | ||||||||
Below is a listing of our outstanding debt, excluding capital leases, as of December 31, 2014 and 2013 (in thousands): | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Unsecured Credit Facility | $ | 239,838 | $ | 256,500 | |||||
Senior Notes, net of discount | 297,729 | — | |||||||
Richmond Credit Facility | 70,000 | 70,000 | |||||||
Atlanta-Metro Equipment Loan | 16,600 | 18,839 | |||||||
Total | $ | 624,167 | $ | 345,339 | |||||
(a) Unsecured Credit Facility — On May 1, 2013, the Company entered into a $575 million unsecured credit facility comprised of a five-year $225 million term loan and a four-year $350 million revolving credit facility with a one year extension, subject to satisfaction of certain conditions, and had the ability to expand the total credit facility by an additional $100 million subject to certain conditions set forth in the credit agreement. In July 2014 the Company’s term loan was reduced by $75 million to $150 million in connection with the issuance of the Senior Notes. On December 17, 2014, the Company amended and restated its unsecured credit facility to provide for a $650 million unsecured credit facility comprised of a five-year $100 million term loan maturing December 17, 2019 and a four-year $550 million revolving credit facility maturing December 17, 2018, with the option to extend one year until December 17, 2019, subject to the satisfaction of certain conditions. The lenders under the unsecured credit facility may issue up to $30 million in letters of credit subject to the satisfaction of certain conditions. | |||||||||
The total unsecured credit facility may be increased from the current capacity of $650 million to up to $850 million subject to certain conditions set forth in the credit agreement, including the consent of the administrative agent and obtaining necessary commitments. Amounts outstanding under the unsecured credit facility bear interest at a variable rate equal to, at the Company’s election, LIBOR or a base rate, plus a spread that will vary depending upon the leverage ratio. For revolving credit loans, the spread ranges from 1.70% to 2.25% for LIBOR loans and 0.70% to 1.25% for base rate loans. For term loans, the spread ranges from 1.65% to 2.20% for LIBOR loans and 0.65% to 1.20% for base rate loans. As of December 31, 2014, the interest rate for amounts outstanding under the unsecured credit facility was 1.84%. The Company is also required to pay a commitment fee to the lenders assessed on the unused portion of the unsecured revolving credit facility. At the Company’s election, it can prepay amounts outstanding under the unsecured credit facility, in whole or in part, without penalty or premium. | |||||||||
The Company’s ability to borrow under the unsecured credit facility is subject to ongoing compliance with a number of customary affirmative and negative covenants, including limitations on liens, mergers, consolidations, investments, distributions, asset sales and affiliate transactions, as well as the following financial covenants: (i) the outstanding principal balance of the loans and letter of credit liabilities cannot exceed the unencumbered asset pool availability (as defined in the credit agreement), (ii) a maximum leverage ratio of total indebtedness to gross asset value not in excess of 60%, (iii) a minimum fixed charge coverage ratio (defined as the ratio of consolidated EBITDA, subject to certain adjustments, to consolidated fixed charges) for the prior two most recently-ended calendar quarters of not less than 1.70 to 1.00, (iv) tangible net worth of at least $645 million plus 85% of the sum of net equity offering proceeds and the value of interests in the Operating Partnership issued upon contribution of assets to the Operating Partnership or its subsidiaries, (v) unhedged variable rate debt not greater than 35% of gross asset value and (vi) a maximum distribution payout ratio of the greater of (a) 95% of our “funds from operations” (as defined in the agreement) and (b) the amount required for QTS to qualify as a REIT under the Code. The interest rate applied to the outstanding balance of the unsecured credit facility decreases incrementally for every 5% below the maximum leverage ratio. | |||||||||
The availability under the unsecured revolving credit facility is the lesser of (i) $550 million, (ii) 60% of the unencumbered asset pool capitalized value, (iii) the amount resulting in an unencumbered asset pool debt service ratio of 1.70 to 1.00 or (iv) the amount resulting in an unencumbered asset pool debt yield of 14%. In the case of clauses (ii), (iii) and (iv) of the preceding sentence, the amount available under the unsecured revolving credit facility is adjusted to take into account any other unsecured debt, a certain equipment-related loan and certain capitalized leases. The availability of funds under the unsecured credit facility depends on compliance with the Company’s covenants. As of December 31, 2014, the Company had outstanding $239.8 million of indebtedness under the unsecured credit facility, consisting of $139.8 million of outstanding borrowings under our unsecured revolving credit facility and $100.0 million outstanding term loan indebtedness. In connection with the unsecured credit facility, as of December 31, 2014, the Company had an additional $2.5 million letter of credit outstanding. | |||||||||
(b) Senior Notes — On July 23, 2014, the Operating Partnership and QTS Finance Corporation, a subsidiary of the Operating Partnership formed solely for the purpose of facilitating the offering of the notes described below (collectively, the “Issuers”), issued $300 million aggregate principal amount of 5.875% Senior Notes due 2022 (the “Senior Notes”). The Senior Notes have an interest rate of 5.875% per annum, were issued at a price equal to 99.211% of their face value and mature on August 1, 2022. The proceeds from the offering were used to repay amounts outstanding under the Unsecured Credit Facility, including $75 million outstanding under the term loan. The Senior Notes are unconditionally guaranteed, jointly and severally, on a senior unsecured basis by all of the Operating Partnership’s existing subsidiaries (other than foreign subsidiaries and receivables entities) that guarantee any indebtedness of QTS Realty Trust, Inc., the Issuers or any other subsidiary guarantor. The Company will not initially guarantee the Senior Notes and will not be required to guarantee the Senior Notes except under certain circumstances. The offering was conducted pursuant to Rule 144A of the Securities Act of 1933, as amended, and the Senior Notes were issued pursuant to an indenture, dated as of July 23, 2014, among the Operating Partnership, QTS Finance Corporation, the Company, the guarantors named therein, and Deutsche Bank Trust Company Americas, as trustee (the “Indenture”). | |||||||||
The Indenture contains affirmative and negative covenants that, among other things, limit or restrict the Operating Partnership’s ability and the ability of certain of its subsidiaries (“Restricted Subsidiaries”) to: incur additional indebtedness; pay dividends; make certain investments or other restricted payments; enter into transactions with affiliates; enter into agreements limiting the ability of the Operating Partnership’s restricted subsidiaries to pay dividends; engage in sales of assets; and engage in mergers, consolidations or sales of substantially all of their assets. However, certain of these covenants will be suspended if and for so long as the Senior Notes are rated investment grade by specified debt rating services and there is no default under the Indenture. The Operating Partnership and its Restricted Subsidiaries also are required to maintain total unencumbered assets (as defined in the Indenture) of at least 150% of their unsecured debt on a consolidated basis. | |||||||||
The Senior Notes may be redeemed by the Issuers, in whole or in part, at any time prior to August 1, 2017 at a redemption price equal to (i) 100% of principal amount, plus (ii) accrued and unpaid interest to the redemption date, and (iii) a make-whole premium. Thereafter, the Issuers may redeem the Senior Notes prior to maturity at 104.406% of the principal amount at August 1, 2017 and declining ratably to par at August 1, 2020 and thereafter, in each case plus accrued and unpaid interest to the redemption date. At any time prior to August 1, 2017, the Issuers may, subject to certain conditions, redeem up to 35% of the aggregate principal amount of the Senior Notes at 105.875% of the principal amount thereof, plus accrued and unpaid interest to the redemption date, with the net cash proceeds of certain equity offerings consummated by us or the Operating Partnership. Also, upon the occurrence of a change of control of us or the Operating Partnership, holders of the Senior Notes may require the Issuers to repurchase all or a portion of the Senior Notes at a price equal to 101% of the principal amount of the Senior Notes to be repurchased plus accrued and unpaid interest to the repurchase date. | |||||||||
(c) Richmond Credit Facility — In December 2012, the Company entered into a credit facility secured by the Company’s Richmond data center (the “Richmond Credit Facility”). As of December 31, 2014, the Richmond Credit Facility had capacity of $120 million and includes an accordion feature that allows the Company to increase the size of the credit facility up to $200 million. The Richmond Credit Facility matures June 30, 2019. 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 December 31, 2014, the interest rate for amounts outstanding under the Richmond Credit Facility was 2.27%. | |||||||||
On December 17, 2014, the Company further amended the Richmond Credit Facility to, among other things, conform certain terms of the Richmond Credit Facility to the unsecured credit facility and allow two subsidiaries of the Operating Partnership that were parties to the Richmond Credit Facility to guarantee unsecured obligations of the Operating Partnership and its subsidiaries, including the unsecured credit facility and the Senior Notes. | |||||||||
(d) Atlanta-Metro Equipment Loan — On April 9, 2010, the Company entered into a $25 million loan to finance equipment related to an expansion project at the Company’s Atlanta-Metro data center (the “Atlanta-Metro Equipment Loan”). The loan originally featured monthly interest-only payments but now requires monthly interest and principal payments. The loan bears interest at 6.85%, amortizes over ten years and matures on June 1, 2020. | |||||||||
The annual remaining principal payment requirements as of December 31, 2014 per the contractual maturities and excluding extension options are as follows (in thousands): | |||||||||
2015 | $ | 2,397 | |||||||
2016 | 2,567 | ||||||||
2017 | 2,748 | ||||||||
2018 | 142,781 | ||||||||
2019 | 173,150 | ||||||||
Thereafter | 302,795 | ||||||||
Total | $ | 626,438 | |||||||
As of December 31, 2014, the Company was in compliance with all of its covenants. | |||||||||
Qualitytech, LP [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit Facilities Senior Notes and Mortgage Notes Payable | 5. Credit Facilities, Senior Notes and Mortgage Notes Payable | ||||||||
Below is a listing of our outstanding debt, excluding capital leases, as of December 31, 2014 and 2013 (in thousands): | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Unsecured Credit Facility | $ | 239,838 | $ | 256,500 | |||||
Senior Notes, net of discount | 297,729 | — | |||||||
Richmond Credit Facility | 70,000 | 70,000 | |||||||
Atlanta-Metro Equipment Loan | 16,600 | 18,839 | |||||||
Total | $ | 624,167 | $ | 345,339 | |||||
(a) Unsecured Credit Facility — On May 1, 2013, the Company entered into a $575 million unsecured credit facility comprised of a five-year $225 million term loan and a four-year $350 million revolving credit facility with a one year extension, subject to satisfaction of certain conditions, and had the ability to expand the total credit facility by an additional $100 million subject to certain conditions set forth in the credit agreement. In July 2014 the Company’s term loan was reduced by $75 million to $150 million in connection with the issuance of the Senior Notes. On December 17, 2014, the Company amended and restated its unsecured credit facility to provide for a $650 million unsecured credit facility comprised of a five-year $100 million term loan maturing December 17, 2019 and a four-year $550 million revolving credit facility maturing December 17, 2018, with the option to extend one year until December 17, 2019, subject to the satisfaction of certain conditions. The lenders under the unsecured credit facility may issue up to $30 million in letters of credit subject to the satisfaction of certain conditions. | |||||||||
The total unsecured credit facility may be increased from the current capacity of $650 million to up to $850 million subject to certain conditions set forth in the credit agreement, including the consent of the administrative agent and obtaining necessary commitments. Amounts outstanding under the unsecured credit facility bear interest at a variable rate equal to, at the Company’s election, LIBOR or a base rate, plus a spread that will vary depending upon the leverage ratio. For revolving credit loans, the spread ranges from 1.70% to 2.25% for LIBOR loans and 0.70% to 1.25% for base rate loans. For term loans, the spread ranges from 1.65% to 2.20% for LIBOR loans and 0.65% to 1.20% for base rate loans. As of December 31, 2014, the interest rate for amounts outstanding under the unsecured credit facility was 1.84%. The Company is also required to pay a commitment fee to the lenders assessed on the unused portion of the unsecured revolving credit facility. At the Company’s election, it can prepay amounts outstanding under the unsecured credit facility, in whole or in part, without penalty or premium. | |||||||||
The Company’s ability to borrow under the unsecured credit facility is subject to ongoing compliance with a number of customary affirmative and negative covenants, including limitations on liens, mergers, consolidations, investments, distributions, asset sales and affiliate transactions, as well as the following financial covenants: (i) the outstanding principal balance of the loans and letter of credit liabilities cannot exceed the unencumbered asset pool availability (as defined in the credit agreement), (ii) a maximum leverage ratio of total indebtedness to gross asset value not in excess of 60%, (iii) a minimum fixed charge coverage ratio (defined as the ratio of consolidated EBITDA, subject to certain adjustments, to consolidated fixed charges) for the prior two most recently-ended calendar quarters of not less than 1.70 to 1.00, (iv) tangible net worth of at least $645 million plus 85% of the sum of net equity offering proceeds and the value of interests in the Operating Partnership issued upon contribution of assets to the Operating Partnership or its subsidiaries, (v) unhedged variable rate debt not greater than 35% of gross asset value and (vi) a maximum distribution payout ratio of the greater of (a) 95% of our “funds from operations” (as defined in the agreement) and (b) the amount required for QTS to qualify as a REIT under the Code. The interest rate applied to the outstanding balance of the unsecured credit facility decreases incrementally for every 5% below the maximum leverage ratio. | |||||||||
The availability under the unsecured revolving credit facility is the lesser of (i) $550 million, (ii) 60% of the unencumbered asset pool capitalized value, (iii) the amount resulting in an unencumbered asset pool debt service ratio of 1.70 to 1.00 or (iv) the amount resulting in an unencumbered asset pool debt yield of 14%. In the case of clauses (ii), (iii) and (iv) of the preceding sentence, the amount available under the unsecured revolving credit facility is adjusted to take into account any other unsecured debt, a certain equipment-related loan and certain capitalized leases. The availability of funds under the unsecured credit facility depends on compliance with the Company’s covenants. As of December 31, 2014, the Company had outstanding $239.8 million of indebtedness under the unsecured credit facility, consisting of $139.8 million of outstanding borrowings under our unsecured revolving credit facility and $100.0 million outstanding term loan indebtedness. In connection with the unsecured credit facility, as of December 31, 2014, the Company had an additional $2.5 million letter of credit outstanding. | |||||||||
(b) Senior Notes — On July 23, 2014, the Operating Partnership and QTS Finance Corporation, a subsidiary of the Operating Partnership formed solely for the purpose of facilitating the offering of the notes described below (collectively, the “Issuers”), issued $300 million aggregate principal amount of 5.875% Senior Notes due 2022 (the “Senior Notes”). The Senior Notes have an interest rate of 5.875% per annum, were issued at a price equal to 99.211% of their face value and mature on August 1, 2022. The proceeds from the offering were used to repay amounts outstanding under the Unsecured Credit Facility, including $75 million outstanding under the term loan. The Senior Notes are unconditionally guaranteed, jointly and severally, on a senior unsecured basis by all of the Operating Partnership’s existing subsidiaries (other than foreign subsidiaries and receivables entities) that guarantee any indebtedness of QTS Realty Trust, Inc., the Issuers or any other subsidiary guarantor. The Company will not initially guarantee the Senior Notes and will not be required to guarantee the Senior Notes except under certain circumstances. The offering was conducted pursuant to Rule 144A of the Securities Act of 1933, as amended, and the Senior Notes were issued pursuant to an indenture, dated as of July 23, 2014, among the Operating Partnership, QTS Finance Corporation, the Company, the guarantors named therein, and Deutsche Bank Trust Company Americas, as trustee (the “Indenture”). | |||||||||
The Indenture contains affirmative and negative covenants that, among other things, limit or restrict the Operating Partnership’s ability and the ability of certain of its subsidiaries (“Restricted Subsidiaries”) to: incur additional indebtedness; pay dividends; make certain investments or other restricted payments; enter into transactions with affiliates; enter into agreements limiting the ability of the Operating Partnership’s restricted subsidiaries to pay dividends; engage in sales of assets; and engage in mergers, consolidations or sales of substantially all of their assets. However, certain of these covenants will be suspended if and for so long as the Senior Notes are rated investment grade by specified debt rating services and there is no default under the Indenture. The Operating Partnership and its Restricted Subsidiaries also are required to maintain total unencumbered assets (as defined in the Indenture) of at least 150% of their unsecured debt on a consolidated basis. | |||||||||
The Senior Notes may be redeemed by the Issuers, in whole or in part, at any time prior to August 1, 2017 at a redemption price equal to (i) 100% of principal amount, plus (ii) accrued and unpaid interest to the redemption date, and (iii) a make-whole premium. Thereafter, the Issuers may redeem the Senior Notes prior to maturity at 104.406% of the principal amount at August 1, 2017 and declining ratably to par at August 1, 2020 and thereafter, in each case plus accrued and unpaid interest to the redemption date. At any time prior to August 1, 2017, the Issuers may, subject to certain conditions, redeem up to 35% of the aggregate principal amount of the Senior Notes at 105.875% of the principal amount thereof, plus accrued and unpaid interest to the redemption date, with the net cash proceeds of certain equity offerings consummated by us or the Operating Partnership. Also, upon the occurrence of a change of control of us or the Operating Partnership, holders of the Senior Notes may require the Issuers to repurchase all or a portion of the Senior Notes at a price equal to 101% of the principal amount of the Senior Notes to be repurchased plus accrued and unpaid interest to the repurchase date. | |||||||||
(c) Richmond Credit Facility — In December 2012, the Company entered into a credit facility secured by the Company’s Richmond data center (the “Richmond Credit Facility”). As of December 31, 2014, the Richmond Credit Facility had capacity of $120 million and includes an accordion feature that allows the Company to increase the size of the credit facility up to $200 million. The Richmond Credit Facility matures June 30, 2019. 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 December 31, 2014, the interest rate for amounts outstanding under the Richmond Credit Facility was 2.27%. | |||||||||
On December 17, 2014, the Company further amended the Richmond Credit Facility to, among other things, conform certain terms of the Richmond Credit Facility to the unsecured credit facility and allow two subsidiaries of the Operating Partnership that were parties to the Richmond Credit Facility to guarantee unsecured obligations of the Operating Partnership and its subsidiaries, including the unsecured credit facility and the Senior Notes. | |||||||||
(d) Atlanta-Metro Equipment Loan — On April 9, 2010, the Company entered into a $25 million loan to finance equipment related to an expansion project at the Company’s Atlanta-Metro data center (the “Atlanta-Metro Equipment Loan”). The loan originally featured monthly interest-only payments but now requires monthly interest and principal payments. The loan bears interest at 6.85%, amortizes over ten years and matures on June 1, 2020. | |||||||||
The annual remaining principal payment requirements as of December 31, 2014 per the contractual maturities and excluding extension options are as follows (in thousands): | |||||||||
2015 | $ | 2,397 | |||||||
2016 | 2,567 | ||||||||
2017 | 2,748 | ||||||||
2018 | 142,781 | ||||||||
2019 | 173,150 | ||||||||
Thereafter | 302,795 | ||||||||
Total | $ | 626,438 | |||||||
As of December 31, 2014, the Company was in compliance with all of its covenants. | |||||||||
Interest_Rate_Derivative_Instr
Interest Rate Derivative Instruments | 12 Months Ended |
Dec. 31, 2014 | |
Derivative [Line Items] | |
Interest Rate Derivative Instruments | 6. Interest Rate Derivative Instruments |
The Company entered into interest rate swap agreements with a notional amount of $150 million on February 8, 2012, which were designated as cash flow hedges for hedge accounting, and matured on September 28, 2014. For derivative instruments that are accounted for as hedges, the change in fair value for the effective portions of qualifying hedges is recorded through other comprehensive income (loss). The total amount of unrealized gains recorded in other comprehensive income (loss) for the year ended December 31, 2013 was $0.3 million, with no unrealized gains or losses recorded for the year ended December 31, 2014. Interest expense related to payments on interest rate swaps was $0.5 million for each of the years ended December 31, 2014, 2013 and 2012. | |
As the interest rate swaps matured in September 2014, there were no amounts outstanding on the consolidated balance sheet relating to interest rate swaps as of December 31, 2014. At December 31, 2013 the value of the interest rate swaps was a liability of $0.5 million. This value was determined using Level 2 inputs within the valuation hierarchy. | |
Qualitytech, LP [Member] | |
Derivative [Line Items] | |
Interest Rate Derivative Instruments | 6. Interest Rate Derivative Instruments |
The Company entered into interest rate swap agreements with a notional amount of $150 million on February 8, 2012, which were designated as cash flow hedges for hedge accounting, and matured on September 28, 2014. For derivative instruments that are accounted for as hedges, the change in fair value for the effective portions of qualifying hedges is recorded through other comprehensive income (loss). The total amount of unrealized gains recorded in other comprehensive income (loss) for the year ended December 31, 2013 was $0.3 million, with no unrealized gains or losses recorded for the year ended December 31, 2014. Interest expense related to payments on interest rate swaps was $0.5 million for each of the years ended December 31, 2014, 2013 and 2012. | |
As the interest rate swaps matured in September 2014, there were no amounts outstanding on the consolidated balance sheet relating to interest rate swaps as of December 31, 2014. At December 31, 2013 the value of the interest rate swaps was a liability of $0.5 million. This value was determined using Level 2 inputs within the valuation hierarchy. | |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Gain Contingencies [Line Items] | |
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. The Company does not currently have any litigation that would have a material adverse impact on the Company’s financial statements. The Company previously was engaged in litigation with an Internet service provider, however, the parties reached a settlement that did not have a material impact on the Company’s consolidated financial statements. | |
Qualitytech, LP [Member] | |
Gain Contingencies [Line Items] | |
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. The Company does not currently have any litigation that would have a material adverse impact on the Company’s financial statements. The Company previously was engaged in litigation with an Internet service provider, however, the parties reached a settlement that did not have a material impact on the Company’s consolidated financial statements. | |
Partners_Capital_Equity_and_In
Partners' Capital, Equity and Incentive Compensation Plans | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Partners’ Capital, Equity and Incentive Compensation Plans | 8. Partners’ Capital, Equity and Incentive Compensation Plans | ||||||||||||||||||||||||||||||||||||||||
QualityTech, LP | |||||||||||||||||||||||||||||||||||||||||
QTS has the full power and authority to do all the things necessary to conduct the business of the Operating Partnership. | |||||||||||||||||||||||||||||||||||||||||
As of December 31, 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 November 1, 2013 (which is the beginning of the first full calendar month following the completion of the IPO) or the date of initial issuance. The Company may in its sole discretion elect to assume and satisfy the redemption amount with cash or its shares. Class RS units or Class O units were issued upon grants made under the QualityTech, LP 2010 Equity Incentive Plan (the “2010 Equity Incentive Plan”). Class RS units and Class O units may be subject to vesting and are pari passu with Class A units of the Operating Partnership. Each Class RS Unit and Class O Unit is convertible into Class A Units by the Operating Partnership at any time or by the holder at any time following full vesting (if such unit is subject to vesting) based on formulas contained in the partnership agreement. In addition, upon certain circumstances set forth in the partnership agreement, vested Class RS Units automatically convert into Class A Units of the Operating Partnership. | |||||||||||||||||||||||||||||||||||||||||
QTS Realty Trust, Inc. | |||||||||||||||||||||||||||||||||||||||||
In connection with its IPO, QTS issued Class A common stock and Class B common stock. Class B common stock entitles the holder to 50 votes per share and was issued to enable the Company’s Chief Executive Officer to exchange 2% of his Operating Partnership units so he may have a vote proportionate to his economic interest in the Company. Also in connection with its IPO, QTS adopted the QTS Realty Trust, Inc. 2013 Equity Incentive plan (the “2013 Equity Incentive Plan”), which authorized 1.75 million shares 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 years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||||||||||||||||||||||||
2010 Equity Incentive Plan | 2013 Equity Incentive Plan | ||||||||||||||||||||||||||||||||||||||||
Number of | Weighted | Weighted | Number of | Weighted | Options | Weighted | Weighted | Restricted | Weighted | ||||||||||||||||||||||||||||||||
Class O | average | average | Class RS | average | average | average | Stock | average | |||||||||||||||||||||||||||||||||
units | exercise | fair value | units | price | exercise | fair value | price | ||||||||||||||||||||||||||||||||||
price | price | ||||||||||||||||||||||||||||||||||||||||
Outstanding at January 1, 2012 | 699,368 | $ | 20 | $ | 4.38 | 50,000 | $ | — | — | $ | — | $ | — | — | $ | — | |||||||||||||||||||||||||
Granted | 908,925 | 25 | $ | 1.99 | 150,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Exercised | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Released from restriction(1) | — | — | — | (21,250 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Cancelled/Expired | (136,350 | ) | — | 4.41 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Outstanding at December 31, 2012 | 1,471,943 | $ | 23.09 | $ | 2.84 | 178,750 | $ | — | — | $ | — | $ | — | — | $ | — | |||||||||||||||||||||||||
Granted | 224,244 | 25 | 10.62 | — | — | 370,410 | 21 | 3.5 | 108,629 | 21 | |||||||||||||||||||||||||||||||
Exercised | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Released from restriction(1) | — | — | — | (5,000 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Cancelled/Expired | (73,440 | ) | — | 5.31 | — | — | (2,500 | ) | — | 3.52 | — | — | |||||||||||||||||||||||||||||
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 | — | — | — | — | — | 238,039 | 25.59 | 4.96 | 172,102 | 32.66 | |||||||||||||||||||||||||||||||
Exercised(2) | (15,750 | ) | 20.71 | 4.75 | — | — | (3,000 | ) | 21 | 3.52 | (25,786 | ) | 21 | ||||||||||||||||||||||||||||
Released from restriction(1) | — | — | — | (99,125 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Cancelled/Expired(3) | (88,280 | ) | 26.7 | 6.05 | — | — | (18,000 | ) | 21 | 3.52 | (8,160 | ) | 21 | ||||||||||||||||||||||||||||
Outstanding at December 31, 2014 | 1,518,717 | $ | 23.49 | $ | 3.75 | 74,625 | $ | 23.49 | 584,949 | $ | 22.87 | $ | 4.1 | 246,785 | $ | 29.13 | |||||||||||||||||||||||||
-1 | This represents Class RS units that upon vesting have converted to Operating Partnership units. | ||||||||||||||||||||||||||||||||||||||||
-2 | This represents the Class A common stock that has been released from restriction and which was not surrendered by the holder to satisfy their statutory minimum federal and state tax obligations associated with the vesting of restricted common stock. | ||||||||||||||||||||||||||||||||||||||||
-3 | Includes 8,160 of restricted Class A common stock surrendered by certain employees to satisfy their statutory minimum federal and state tax obligations associated with the vesting of restricted common stock. | ||||||||||||||||||||||||||||||||||||||||
The assumptions and fair values for Class O units, Class RS units, restricted stock and options to purchase shares of Class A common stock granted for the years ended December 31, 2014, 2013 and 2012 are included in the following table on a per unit basis. Class O units and options to purchase shares of Class A common stock were valued using the Black-Scholes model. | |||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
Fair value of Class RS Units granted | $ | — | $ | — | $ | 7.15 | |||||||||||||||||||||||||||||||||||
Fair value of Class O Units granted | $ | — | $ | 10.26 – $10.92 | $ | 1.79 – $2.32 | |||||||||||||||||||||||||||||||||||
Fair value of restricted stock granted | $ | 25.51 – $35.51 | $ | 21 | $ | — | |||||||||||||||||||||||||||||||||||
Fair value of options granted | $ | 4.94 – $5.98 | $ | 3.45 – $3.52 | $ | — | |||||||||||||||||||||||||||||||||||
Expected term (years) | 5.5 – 6.1 | 5.5 – 7.0 | 4 | ||||||||||||||||||||||||||||||||||||||
Expected volatility | 33 | % | 32% – 40 | % | 55 | % | |||||||||||||||||||||||||||||||||||
Expected dividend yield | 4.02 – 4.55 | % | 5.5 | % | 0 | % | |||||||||||||||||||||||||||||||||||
Expected risk-free interest rates | 1.7 – 1.9 | % | 1.4% – 1.8 | % | 0.17 | % | |||||||||||||||||||||||||||||||||||
The following table summarizes information about awards outstanding as of December 31, 2014. | |||||||||||||||||||||||||||||||||||||||||
Operating Partnership Awards Outstanding | |||||||||||||||||||||||||||||||||||||||||
Exercise | Awards | Weighted | |||||||||||||||||||||||||||||||||||||||
prices | outstanding | average | |||||||||||||||||||||||||||||||||||||||
remaining | |||||||||||||||||||||||||||||||||||||||||
vesting period | |||||||||||||||||||||||||||||||||||||||||
(years) | |||||||||||||||||||||||||||||||||||||||||
Class RS Units | $ | — | 74,625 | 2 | |||||||||||||||||||||||||||||||||||||
Class O Units | $ | 20 – 25 | 1,518,717 | 1 | |||||||||||||||||||||||||||||||||||||
Total Operating Partnership awards outstanding | 1,593,342 | ||||||||||||||||||||||||||||||||||||||||
QTS Realty Trust, Inc. Awards Outstanding | |||||||||||||||||||||||||||||||||||||||||
Exercise | Awards | Weighted | |||||||||||||||||||||||||||||||||||||||
prices | outstanding | average | |||||||||||||||||||||||||||||||||||||||
remaining | |||||||||||||||||||||||||||||||||||||||||
vesting period | |||||||||||||||||||||||||||||||||||||||||
(years) | |||||||||||||||||||||||||||||||||||||||||
Restricted stock | $ | — | 246,785 | 3 | |||||||||||||||||||||||||||||||||||||
Options to purchase Class A common stock | $ | 21 – 28.82 | 584,949 | 2 | |||||||||||||||||||||||||||||||||||||
Total QTS Realty Trust, Inc. awards outstanding | 831,734 | ||||||||||||||||||||||||||||||||||||||||
All nonvested LTIP unit awards are valued as of the grant date and generally vest ratably over a defined service period. Certain nonvested LTIP unit awards vest on the earlier of achievement by the Company of various performance goals or specified dates in 2015 and 2016. As of December 31, 2014 there were 0.7 million, 0.1 million, 0.2 million and 0.4 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 December 31, 2014 the Company had $10.5 million of unrecognized equity-based compensation expense which will be recognized over the remaining vesting period of up to 4 years. The total intrinsic value of the awards outstanding at December 31, 2014 was $31.6 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, July 8 and October 7, 2014 and January 7, 2015, 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, $10.7 million, $10.5 million and $10.7 million, respectively. Additionally, a distribution of approximately $200,000 was made to Class O unit holders during the three months ended June 30, 2014 to cover federal, state and local taxes on the allocated taxable income of the Class O units. | |||||||||||||||||||||||||||||||||||||||||
Qualitytech, LP [Member] | |||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Partners’ Capital, Equity and Incentive Compensation Plans | 8. Partners’ Capital, Equity and Incentive Compensation Plans | ||||||||||||||||||||||||||||||||||||||||
QualityTech, LP | |||||||||||||||||||||||||||||||||||||||||
QTS has the full power and authority to do all the things necessary to conduct the business of the Operating Partnership. | |||||||||||||||||||||||||||||||||||||||||
As of December 31, 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 November 1, 2013 (which is the beginning of the first full calendar month following the completion of the IPO) or the date of initial issuance. The Company may in its sole discretion elect to assume and satisfy the redemption amount with cash or its shares. Class RS units or Class O units were issued upon grants made under the QualityTech, LP 2010 Equity Incentive Plan (the “2010 Equity Incentive Plan”). Class RS units and Class O units may be subject to vesting and are pari passu with Class A units of the Operating Partnership. Each Class RS Unit and Class O Unit is convertible into Class A Units by the Operating Partnership at any time or by the holder at any time following full vesting (if such unit is subject to vesting) based on formulas contained in the partnership agreement. In addition, upon certain circumstances set forth in the partnership agreement, vested Class RS Units automatically convert into Class A Units of the Operating Partnership. | |||||||||||||||||||||||||||||||||||||||||
QTS Realty Trust, Inc. | |||||||||||||||||||||||||||||||||||||||||
In connection with its IPO, QTS issued Class A common stock and Class B common stock. Class B common stock entitles the holder to 50 votes per share and was issued to enable the Company’s Chief Executive Officer to exchange 2% of his Operating Partnership units so he may have a vote proportionate to his economic interest in the Company. Also in connection with its IPO, QTS adopted the QTS Realty Trust, Inc. 2013 Equity Incentive plan (the “2013 Equity Incentive Plan”), which authorized 1.75 million shares 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 years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||||||||||||||||||||||||
2010 Equity Incentive Plan | 2013 Equity Incentive Plan | ||||||||||||||||||||||||||||||||||||||||
Number of | Weighted | Weighted | Number of | Weighted | Options | Weighted | Weighted | Restricted | Weighted | ||||||||||||||||||||||||||||||||
Class O | average | average | Class RS | average | average | average | Stock | average | |||||||||||||||||||||||||||||||||
units | exercise | fair value | units | price | exercise | fair value | price | ||||||||||||||||||||||||||||||||||
price | price | ||||||||||||||||||||||||||||||||||||||||
Outstanding at January 1, 2012 | 699,368 | $ | 20 | $ | 4.38 | 50,000 | $ | — | — | $ | — | $ | — | — | $ | — | |||||||||||||||||||||||||
Granted | 908,925 | 25 | $ | 1.99 | 150,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Exercised | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Released from restriction(1) | — | — | — | (21,250 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Cancelled/Expired | (136,350 | ) | — | 4.41 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Outstanding at December 31, 2012 | 1,471,943 | $ | 23.09 | $ | 2.84 | 178,750 | $ | — | — | $ | — | $ | — | — | $ | — | |||||||||||||||||||||||||
Granted | 224,244 | 25 | 10.62 | — | — | 370,410 | 21 | 3.5 | 108,629 | 21 | |||||||||||||||||||||||||||||||
Exercised | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Released from restriction(1) | — | — | — | (5,000 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Cancelled/Expired | (73,440 | ) | — | 5.31 | — | — | (2,500 | ) | — | 3.52 | — | — | |||||||||||||||||||||||||||||
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 | — | — | — | — | — | 238,039 | 25.59 | 4.96 | 172,102 | 32.66 | |||||||||||||||||||||||||||||||
Exercised(2) | (15,750 | ) | 20.71 | 4.75 | — | — | (3,000 | ) | 21 | 3.52 | (25,786 | ) | 21 | ||||||||||||||||||||||||||||
Released from restriction(1) | — | — | — | (99,125 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Cancelled/Expired(3) | (88,280 | ) | 26.7 | 6.05 | — | — | (18,000 | ) | 21 | 3.52 | (8,160 | ) | 21 | ||||||||||||||||||||||||||||
Outstanding at December 31, 2014 | 1,518,717 | $ | 23.49 | $ | 3.75 | 74,625 | $ | 23.49 | 584,949 | $ | 22.87 | $ | 4.1 | 246,785 | $ | 29.13 | |||||||||||||||||||||||||
-1 | This represents Class RS units that upon vesting have converted to Operating Partnership units. | ||||||||||||||||||||||||||||||||||||||||
-2 | This represents the Class A common stock that has been released from restriction and which was not surrendered by the holder to satisfy their statutory minimum federal and state tax obligations associated with the vesting of restricted common stock. | ||||||||||||||||||||||||||||||||||||||||
-3 | Includes 8,160 of restricted Class A common stock surrendered by certain employees to satisfy their statutory minimum federal and state tax obligations associated with the vesting of restricted common stock. | ||||||||||||||||||||||||||||||||||||||||
The assumptions and fair values for Class O units, Class RS units, restricted stock and options to purchase shares of Class A common stock granted for the years ended December 31, 2014, 2013 and 2012 are included in the following table on a per unit basis. Class O units and options to purchase shares of Class A common stock were valued using the Black-Scholes model. | |||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
Fair value of Class RS Units granted | $ | — | $ | — | $ | 7.15 | |||||||||||||||||||||||||||||||||||
Fair value of Class O Units granted | $ | — | $ | 10.26 – $10.92 | $ | 1.79 – $2.32 | |||||||||||||||||||||||||||||||||||
Fair value of restricted stock granted | $ | 25.51 – $35.51 | $ | 21 | $ | — | |||||||||||||||||||||||||||||||||||
Fair value of options granted | $ | 4.94 – $5.98 | $ | 3.45 – $3.52 | $ | — | |||||||||||||||||||||||||||||||||||
Expected term (years) | 5.5 – 6.1 | 5.5 – 7.0 | 4 | ||||||||||||||||||||||||||||||||||||||
Expected volatility | 33 | % | 32% – 40 | % | 55 | % | |||||||||||||||||||||||||||||||||||
Expected dividend yield | 4.02 – 4.55 | % | 5.5 | % | 0 | % | |||||||||||||||||||||||||||||||||||
Expected risk-free interest rates | 1.7 – 1.9 | % | 1.4% – 1.8 | % | 0.17 | % | |||||||||||||||||||||||||||||||||||
The following table summarizes information about awards outstanding as of December 31, 2014. | |||||||||||||||||||||||||||||||||||||||||
Operating Partnership Awards Outstanding | |||||||||||||||||||||||||||||||||||||||||
Exercise | Awards | Weighted | |||||||||||||||||||||||||||||||||||||||
prices | outstanding | average | |||||||||||||||||||||||||||||||||||||||
remaining | |||||||||||||||||||||||||||||||||||||||||
vesting period | |||||||||||||||||||||||||||||||||||||||||
(years) | |||||||||||||||||||||||||||||||||||||||||
Class RS Units | $ | — | 74,625 | 2 | |||||||||||||||||||||||||||||||||||||
Class O Units | $ | 20 – 25 | 1,518,717 | 1 | |||||||||||||||||||||||||||||||||||||
Total Operating Partnership awards outstanding | 1,593,342 | ||||||||||||||||||||||||||||||||||||||||
QTS Realty Trust, Inc. Awards Outstanding | |||||||||||||||||||||||||||||||||||||||||
Exercise | Awards | Weighted | |||||||||||||||||||||||||||||||||||||||
prices | outstanding | average | |||||||||||||||||||||||||||||||||||||||
remaining | |||||||||||||||||||||||||||||||||||||||||
vesting period | |||||||||||||||||||||||||||||||||||||||||
(years) | |||||||||||||||||||||||||||||||||||||||||
Restricted stock | $ | — | 246,785 | 3 | |||||||||||||||||||||||||||||||||||||
Options to purchase Class A common stock | $ | 21 – 28.82 | 584,949 | 2 | |||||||||||||||||||||||||||||||||||||
Total QTS Realty Trust, Inc. awards outstanding | 831,734 | ||||||||||||||||||||||||||||||||||||||||
All nonvested LTIP unit awards are valued as of the grant date and generally vest ratably over a defined service period. Certain nonvested LTIP unit awards vest on the earlier of achievement by the Company of various performance goals or specified dates in 2015 and 2016. As of December 31, 2014 there were 0.7 million, 0.1 million, 0.2 million and 0.4 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 December 31, 2014 the Company had $10.5 million of unrecognized equity-based compensation expense which will be recognized over the remaining vesting period of up to 4 years. The total intrinsic value of the awards outstanding at December 31, 2014 was $31.6 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, July 8 and October 7, 2014 and January 7, 2015, 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, $10.7 million, $10.5 million and $10.7 million, respectively. Additionally, a distribution of approximately $200,000 was made to Class O unit holders during the three months ended June 30, 2014 to cover federal, state and local taxes on the allocated taxable income of the Class O units. | |||||||||||||||||||||||||||||||||||||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
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 years ended December 31, 2014, 2013 and 2012 are outlined below (in thousands): | |||||||||||||
December 31, | |||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | ||||||||||
Tax, utility, insurance and other reimbursement | $ | 692 | $ | 336 | $ | 234 | |||||||
Rent expense | 1,026 | 977 | 572 | ||||||||||
Capital assets acquired | 266 | 625 | 568 | ||||||||||
Total | $ | 1,984 | $ | 1,938 | $ | 1,374 | |||||||
In the third quarter of 2012, the Company revised its related party capital asset purchasing arrangement. The Company now pays vendors directly for such purchases and pays only an agent fee to the related party. Only the agent fee is recognized as a related party transaction subsequent to August 2012. | |||||||||||||
Certain employees of the Company provided services to companies outside the consolidated group for which the Company is not reimbursed. These amounts were not material for any of the years ended December 31, 2014, 2013 and 2012. This activity was discontinued by the Company during the second quarter of 2013. | |||||||||||||
Qualitytech, LP [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
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 years ended December 31, 2014, 2013 and 2012 are outlined below (in thousands): | |||||||||||||
December 31, | |||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | ||||||||||
Tax, utility, insurance and other reimbursement | $ | 692 | $ | 336 | $ | 234 | |||||||
Rent expense | 1,026 | 977 | 572 | ||||||||||
Capital assets acquired | 266 | 625 | 568 | ||||||||||
Total | $ | 1,984 | $ | 1,938 | $ | 1,374 | |||||||
In the third quarter of 2012, the Company revised its related party capital asset purchasing arrangement. The Company now pays vendors directly for such purchases and pays only an agent fee to the related party. Only the agent fee is recognized as a related party transaction subsequent to August 2012. | |||||||||||||
Certain employees of the Company provided services to companies outside the consolidated group for which the Company is not reimbursed. These amounts were not material for any of the years ended December 31, 2014, 2013 and 2012. This activity was discontinued by the Company during the second quarter of 2013. | |||||||||||||
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |
Employee Benefit Plan | 10. Employee Benefit Plan |
The Company sponsors a defined contribution 401(k) retirement plan covering all eligible employees. | |
Qualified employees may elect to contribute to our 401(k) Plan on a pre-tax basis. The maximum amount of employee contribution is subject only to statutory limitations. Beginning in 2005 the Company made contributions at a rate of 25% of the first 4% of employee compensation contributed. Starting on January 1, 2014, the Company began making contributions at a rate of 50% on an additional 2% of contributions made by employees, up to 6%. As a result, the Company is currently matching 25% of the first 4% of employee contributions and 50% of employee contributions between 4% and 6%. The Company contributed $0.6 million, $0.3 million and $0.3 million to the 401(k) Plan for the years ended December 31, 2014, 2013, and 2012, respectively. | |
Qualitytech, LP [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Employee Benefit Plan | 10. Employee Benefit Plan |
The Company sponsors a defined contribution 401(k) retirement plan covering all eligible employees. | |
Qualified employees may elect to contribute to our 401(k) Plan on a pre-tax basis. The maximum amount of employee contribution is subject only to statutory limitations. Beginning in 2005 the Company made contributions at a rate of 25% of the first 4% of employee compensation contributed. Starting on January 1, 2014, the Company began making contributions at a rate of 50% on an additional 2% of contributions made by employees, up to 6%. As a result, the Company is currently matching 25% of the first 4% of employee contributions and 50% of employee contributions between 4% and 6%. The Company contributed $0.6 million, $0.3 million and $0.3 million to the 401(k) Plan for the years ended December 31, 2014, 2013, and 2012, respectively. | |
Noncontrolling_Interest
Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2014 | |
Noncontrolling Interest [Line Items] | |
Noncontrolling Interest | 11. Noncontrolling Interest |
Concurrently with the completion of the IPO, QTS consummated a series of transactions pursuant to which QTS became the sole general partner and majority owner of QualityTech, LP, which then became its operating partnership. The previous owners of QualityTech, LP retained 21.2% ownership of the Operating Partnership. | |
Commencing at any time beginning November 1, 2014, at the election of the holders of the noncontrolling interest, the Class A units are redeemable for cash or, at the election of the Company common stock of the Company on a one-for-one basis. During the fourth quarter of 2014, approximately 270,000 Class A units were redeemed for the Company’s common stock. As a result, the noncontrolling ownership interest of QualityTech, LP was 20.4% at December 31, 2014 | |
Qualitytech, LP [Member] | |
Noncontrolling Interest [Line Items] | |
Noncontrolling Interest | 11. Noncontrolling Interest |
Concurrently with the completion of the IPO, QTS consummated a series of transactions pursuant to which QTS became the sole general partner and majority owner of QualityTech, LP, which then became its operating partnership. The previous owners of QualityTech, LP retained 21.2% ownership of the Operating Partnership. | |
Commencing at any time beginning November 1, 2014, at the election of the holders of the noncontrolling interest, the Class A units are redeemable for cash or, at the election of the Company common stock of the Company on a one-for-one basis. During the fourth quarter of 2014, approximately 270,000 Class A units were redeemed for the Company’s common stock. As a result, the noncontrolling ownership interest of QualityTech, LP was 20.4% at December 31, 2014. | |
Earnings_per_share_of_QTS_Real
Earnings per share of QTS Realty Trust, Inc. | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings per share [Line Items] | |||||||||
Earnings per share of QTS Realty Trust, Inc. | 12. Earnings per share of QTS Realty Trust, Inc. | ||||||||
Basic income (loss) per share is calculated by dividing the net income (loss) attributable to common shares by the weighted average number of common shares outstanding during the period. Diluted income (loss) per share adjusts basic income (loss) per share for the effects of potentially dilutive common shares, if the effect is not antidilutive. | |||||||||
(in thousands, except per share data) | Year Ended | For the period | |||||||
December 31, | October 15, | ||||||||
2014 | 2013 through | ||||||||
December 31, | |||||||||
2013 | |||||||||
Net income available to common stockholders | $ | 15,072 | $ | 3,154 | |||||
Weighted average shares outstanding – basic | 29,055 | 28,973 | |||||||
Net income per share – basic | $ | 0.52 | $ | 0.11 | |||||
Net income | $ | 19,103 | $ | 4,002 | |||||
Weighted average shares outstanding – diluted(1) | 37,134 | 36,794 | |||||||
Net income per share – diluted | $ | 0.51 | $ | 0.11 | |||||
-1 | Includes 7,770 Class A and Class RS units, 195 “in the money” value of Class O units on an “as if” converted basis and 114 “in the money” value options to purchase shares of Class A common stock on an “as if” converted basis as of the year ended December 31, 2014. As of the year ended December 31, 2013, this amount includes 7,797 Class A and Class RS units and 24 “in the money” value of Class O units on as “as if” converted basis. | ||||||||
Qualitytech, LP [Member] | |||||||||
Earnings per share [Line Items] | |||||||||
Earnings per share of QTS Realty Trust, Inc. | 12. Earnings per share of QTS Realty Trust, Inc. | ||||||||
Basic income (loss) per share is calculated by dividing the net income (loss) attributable to common shares by the weighted average number of common shares outstanding during the period. Diluted income (loss) per share adjusts basic income (loss) per share for the effects of potentially dilutive common shares, if the effect is not antidilutive. | |||||||||
(in thousands, except per share data) | Year Ended | For the period | |||||||
December 31, | October 15, | ||||||||
2014 | 2013 through | ||||||||
December 31, | |||||||||
2013 | |||||||||
Net income available to common stockholders | $ | 15,072 | $ | 3,154 | |||||
Weighted average shares outstanding – basic | 29,055 | 28,973 | |||||||
Net income per share – basic | $ | 0.52 | $ | 0.11 | |||||
Net income | $ | 19,103 | $ | 4,002 | |||||
Weighted average shares outstanding – diluted(1) | 37,134 | 36,794 | |||||||
Net income per share – diluted | $ | 0.51 | $ | 0.11 | |||||
-1 | Includes 7,770 Class A and Class RS units, 195 “in the money” value of Class O units on an “as if” converted basis and 114 “in the money” value options to purchase shares of Class A common stock on an “as if” converted basis as of the year ended December 31, 2014. As of the year ended December 31, 2013, this amount includes 7,797 Class A and Class RS units and 24 “in the money” value of Class O units on as “as if” converted basis. | ||||||||
Operating_Leases_as_Lessee
Operating Leases, as Lessee | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Operating Leased Assets [Line Items] | |||||
Operating Leases, as Lessee | 13. Operating Leases, as Lessee | ||||
The Company leases and/or licenses two data center facilities and related equipment, its corporate headquarters and additional office space. In addition, the Company has entered into a long-term ground sublease for its Santa Clara property through October 2052. Rent expense for the aforementioned leases was $5.9 million, $5.8 million and $6.5 million for the years ended December 31, 2014, 2013 and 2012, respectively, and is classified in property operating costs and general and administrative expenses in the accompanying Statements of Operations and Comprehensive Income (Loss). The Company recorded no capitalized rent for the years ended December 31, 2014, 2013 and 2012. The future non-cancellable minimum rental payments required under operating leases and/or licenses at December 31, 2014 are as follows (in thousands): | |||||
Year Ending December 31, | |||||
2015 | $ | 5,458 | |||
2016 | 5,533 | ||||
2017 | 5,606 | ||||
2018 | 5,606 | ||||
2019 | 4,591 | ||||
Thereafter | 64,045 | ||||
Total | $ | 90,839 | |||
Qualitytech, LP [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Operating Leases, as Lessee | 13. Operating Leases, as Lessee | ||||
The Company leases and/or licenses two data center facilities and related equipment, its corporate headquarters and additional office space. In addition, the Company has entered into a long-term ground sublease for its Santa Clara property through October 2052. Rent expense for the aforementioned leases was $5.9 million, $5.8 million and $6.5 million for the years ended December 31, 2014, 2013 and 2012, respectively, and is classified in property operating costs and general and administrative expenses in the accompanying Statements of Operations and Comprehensive Income (Loss). The Company recorded no capitalized rent for the years ended December 31, 2014, 2013 and 2012. The future non-cancellable minimum rental payments required under operating leases and/or licenses at December 31, 2014 are as follows (in thousands): | |||||
Year Ending December 31, | |||||
2015 | $ | 5,458 | |||
2016 | 5,533 | ||||
2017 | 5,606 | ||||
2018 | 5,606 | ||||
2019 | 4,591 | ||||
Thereafter | 64,045 | ||||
Total | $ | 90,839 | |||
Customer_Leases_as_Lessor
Customer Leases, as Lessor | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Customer Leases, as Lessor [Line Items] | |||||
Customer Leases, as Lessor | 14. Customer Leases, as Lessor | ||||
Future minimum lease payments to be received under non-cancelable operating customer leases (exclusive of recoveries of operating costs from customers) are as follows for the years ending December 31 (in thousands): | |||||
2015 | $ | 193,310 | |||
2016 | 171,854 | ||||
2017 | 137,121 | ||||
2018 | 106,373 | ||||
2019 | 68,669 | ||||
Thereafter | 215,088 | ||||
Total | $ | 892,415 | |||
Qualitytech, LP [Member] | |||||
Customer Leases, as Lessor [Line Items] | |||||
Customer Leases, as Lessor | 14. Customer Leases, as Lessor | ||||
Future minimum lease payments to be received under non-cancelable operating customer leases (exclusive of recoveries of operating costs from customers) are as follows for the years ending December 31 (in thousands): | |||||
2015 | $ | 193,310 | |||
2016 | 171,854 | ||||
2017 | 137,121 | ||||
2018 | 106,373 | ||||
2019 | 68,669 | ||||
Thereafter | 215,088 | ||||
Total | $ | 892,415 | |||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2014 | |
Fair Value Of Financial Instruments [Line Items] | |
Fair Value of Financial Instruments | 15. Fair Value of Financial Instruments |
ASC Topic 825 requires disclosure of fair value information about financial instruments, whether or not recognized in the consolidated balance sheets, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based upon the application of discount rates to estimated future cash flows based upon market yields or by using other valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair value. Accordingly, fair values are not necessarily indicative of the amounts the Company could realize on disposition of the financial instruments. The use of different market assumptions and/or estimation methodologies may have a material effect on estimated fair value amounts. | |
Short-term instruments: The carrying amounts of cash and cash equivalents, restricted cash approximate fair value. | |
Credit facilities, Senior Notes and mortgage notes payable: The fair value of the Company’s floating rate mortgage loans was estimated using Level 2 “significant other observable inputs” such as available market information based on borrowing rates that the Company believes it could obtain with similar terms and maturities. At December 31, 2014, the fair value of Atlanta-Metro Equipment Loan, based on current market rates, was approximately $16.1 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. The fair value of the Company’s Senior Notes was estimated using Level 2 “significant other observable inputs,” primarily based on quoted market prices for the same or similar issuances. At December 31, 2014, the fair value of the Senior Notes was approximately $294.8 million. | |
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. | |
Qualitytech, LP [Member] | |
Fair Value Of Financial Instruments [Line Items] | |
Fair Value of Financial Instruments | 15. Fair Value of Financial Instruments |
ASC Topic 825 requires disclosure of fair value information about financial instruments, whether or not recognized in the consolidated balance sheets, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based upon the application of discount rates to estimated future cash flows based upon market yields or by using other valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair value. Accordingly, fair values are not necessarily indicative of the amounts the Company could realize on disposition of the financial instruments. The use of different market assumptions and/or estimation methodologies may have a material effect on estimated fair value amounts. | |
Short-term instruments: The carrying amounts of cash and cash equivalents, restricted cash approximate fair value. | |
Credit facilities, Senior Notes and mortgage notes payable: The fair value of the Company’s floating rate mortgage loans was estimated using Level 2 “significant other observable inputs” such as available market information based on borrowing rates that the Company believes it could obtain with similar terms and maturities. At December 31, 2014, the fair value of Atlanta-Metro Equipment Loan, based on current market rates, was approximately $16.1 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. The fair value of the Company’s Senior Notes was estimated using Level 2 “significant other observable inputs,” primarily based on quoted market prices for the same or similar issuances. At December 31, 2014, the fair value of the Senior Notes was approximately $294.8 million. | |
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. | |
Quarterly_Financial_Informatio
Quarterly Financial Information | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Effect of Fourth Quarter Events [Line Items] | |||||||||||||||||||||
Quarterly Financial Information (unaudited) | 16. Quarterly Financial Information (unaudited) | ||||||||||||||||||||
The tables below reflect the selected quarterly information for the years ended December 31, 2014 and 2013 for QTS (in thousands except share data): | |||||||||||||||||||||
QTS | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||
2014 | 2014 | 2014 | 2014 | ||||||||||||||||||
Revenues | $ | 59,563 | $ | 57,945 | $ | 51,338 | $ | 48,943 | |||||||||||||
Operating income | 11,682 | 9,913 | 6,266 | 7,413 | |||||||||||||||||
Net income | 5,848 | 4,006 | 3,921 | 5,328 | |||||||||||||||||
Net income attributable to common shares | 4,627 | 3,157 | 3,090 | 4,198 | |||||||||||||||||
Net income per share attributable to common shares – basic | 0.16 | 0.11 | 0.11 | 0.14 | |||||||||||||||||
Net income per share attributable to common shares – diluted | 0.16 | 0.11 | 0.11 | 0.14 | |||||||||||||||||
QTS | Historical Predecessor | ||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
For the | For the | September 30, | June 30, | March 31, | |||||||||||||||||
period | period | 2013 | 2013 | 2013 | |||||||||||||||||
October 15, | October 1, | ||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||
through | through | ||||||||||||||||||||
December 31, | October 14, | ||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||
Revenues | $ | 40,462 | $ | 6,967 | $ | 46,020 | $ | 42,940 | $ | 41,498 | |||||||||||
Operating income | 6,203 | 1,143 | 7,048 | 6,024 | 5,568 | ||||||||||||||||
Net income (loss) | 4,002 | 445 | 2,709 | (1,232 | ) | (2,074 | ) | ||||||||||||||
Net income (loss) attributable to common shares | 3,154 | N/A | N/A | N/A | N/A | ||||||||||||||||
Net income per share attributable to common shares – basic(1) | 0.11 | N/A | N/A | N/A | N/A | ||||||||||||||||
Net income per share attributable to common shares – diluted(1) | 0.11 | N/A | N/A | N/A | N/A | ||||||||||||||||
-1 | Net income per share attributable to QTS for the period October 15, 2013 through December 31, 2013. | ||||||||||||||||||||
The table below reflects the selected quarterly information for the years ended December 31, 2014 and 2013 for the Operating Partnership (in thousands): | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||
2014 | |||||||||||||||||||||
Revenues | $ | 59,563 | $ | 57,945 | $ | 51,338 | $ | 48,943 | |||||||||||||
Operating income | 11,682 | 9,913 | 6,266 | 7,413 | |||||||||||||||||
Net income | 5,848 | 4,006 | 3,921 | 5,328 | |||||||||||||||||
2013 | |||||||||||||||||||||
Revenues | $ | 47,429 | $ | 46,020 | $ | 42,940 | $ | 41,498 | |||||||||||||
Operating income | 7,346 | 7,048 | 6,024 | 5,568 | |||||||||||||||||
Net income (loss) | 4,447 | 2,709 | (1,232 | ) | (2,074 | ) | |||||||||||||||
Qualitytech, LP [Member] | |||||||||||||||||||||
Effect of Fourth Quarter Events [Line Items] | |||||||||||||||||||||
Quarterly Financial Information (unaudited) | 16. Quarterly Financial Information (unaudited) | ||||||||||||||||||||
The tables below reflect the selected quarterly information for the years ended December 31, 2014 and 2013 for QTS (in thousands except share data): | |||||||||||||||||||||
QTS | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||
2014 | 2014 | 2014 | 2014 | ||||||||||||||||||
Revenues | $ | 59,563 | $ | 57,945 | $ | 51,338 | $ | 48,943 | |||||||||||||
Operating income | 11,682 | 9,913 | 6,266 | 7,413 | |||||||||||||||||
Net income | 5,848 | 4,006 | 3,921 | 5,328 | |||||||||||||||||
Net income attributable to common shares | 4,627 | 3,157 | 3,090 | 4,198 | |||||||||||||||||
Net income per share attributable to common shares – basic | 0.16 | 0.11 | 0.11 | 0.14 | |||||||||||||||||
Net income per share attributable to common shares – diluted | 0.16 | 0.11 | 0.11 | 0.14 | |||||||||||||||||
QTS | Historical Predecessor | ||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
For the | For the | September 30, | June 30, | March 31, | |||||||||||||||||
period | period | 2013 | 2013 | 2013 | |||||||||||||||||
October 15, | October 1, | ||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||
through | through | ||||||||||||||||||||
December 31, | October 14, | ||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||
Revenues | $ | 40,462 | $ | 6,967 | $ | 46,020 | $ | 42,940 | $ | 41,498 | |||||||||||
Operating income | 6,203 | 1,143 | 7,048 | 6,024 | 5,568 | ||||||||||||||||
Net income (loss) | 4,002 | 445 | 2,709 | (1,232 | ) | (2,074 | ) | ||||||||||||||
Net income (loss) attributable to common shares | 3,154 | N/A | N/A | N/A | N/A | ||||||||||||||||
Net income per share attributable to common shares – basic(1) | 0.11 | N/A | N/A | N/A | N/A | ||||||||||||||||
Net income per share attributable to common shares – diluted(1) | 0.11 | N/A | N/A | N/A | N/A | ||||||||||||||||
-1 | Net income per share attributable to QTS for the period October 15, 2013 through December 31, 2013. | ||||||||||||||||||||
The table below reflects the selected quarterly information for the years ended December 31, 2014 and 2013 for the Operating Partnership (in thousands): | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||
2014 | |||||||||||||||||||||
Revenues | $ | 59,563 | $ | 57,945 | $ | 51,338 | $ | 48,943 | |||||||||||||
Operating income | 11,682 | 9,913 | 6,266 | 7,413 | |||||||||||||||||
Net income | 5,848 | 4,006 | 3,921 | 5,328 | |||||||||||||||||
2013 | |||||||||||||||||||||
Revenues | $ | 47,429 | $ | 46,020 | $ | 42,940 | $ | 41,498 | |||||||||||||
Operating income | 7,346 | 7,048 | 6,024 | 5,568 | |||||||||||||||||
Net income (loss) | 4,447 | 2,709 | (1,232 | ) | (2,074 | ) | |||||||||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Event [Line Items] | |
Subsequent Events | 17. Subsequent Events |
On January 7, 2015, QTS paid its regular quarterly cash dividend of $0.29 per common share to stockholders and the Operating Partnership made a distribution to its partners of record as of the close of business on December 19, 2014. | |
On February 23, 2015, the Company’s Board of Directors authorized payment of a regular quarterly cash dividend of $0.32 per common share and per unit in the Operating Partnership, payable on April 7, 2015, to stockholders and unit holders of record as of the close of business on March 20, 2015. | |
On March 2, 2015, QTS completed a public offering of 10,752,500 shares of its Class A common stock at a public offering price of $34.75 per share. QTS offered and sold 5,000,000 shares and GA QTS Interholdco, LLC, the selling stockholder and an affiliate of General Atlantic LLC, offered and sold 5,752,500 shares, including 1,402,500 shares pursuant to the underwriters’ exercise in full of an option to purchase additional shares. QTS received net proceeds, after deducting the underwriting discount and estimated offering expenses payable, of approximately $166.0 million. The Company contributed the net proceeds to the Operating Partnership and used the net proceeds to repay amounts outstanding under the unsecured revolving credit facility. The Company did not receive any proceeds from the offering of shares by the selling stockholder. | |
Qualitytech, LP [Member] | |
Subsequent Event [Line Items] | |
Subsequent Events | 17. Subsequent Events |
On January 7, 2015, QTS paid its regular quarterly cash dividend of $0.29 per common share to stockholders and the Operating Partnership made a distribution to its partners of record as of the close of business on December 19, 2014. | |
On February 23, 2015, the Company’s Board of Directors authorized payment of a regular quarterly cash dividend of $0.32 per common share and per unit in the Operating Partnership, payable on April 7, 2015, to stockholders and unit holders of record as of the close of business on March 20, 2015. | |
On March 2, 2015, QTS completed a public offering of 10,752,500 shares of its Class A common stock at a public offering price of $34.75 per share. QTS offered and sold 5,000,000 shares and GA QTS Interholdco, LLC, the selling stockholder and an affiliate of General Atlantic LLC, offered and sold 5,752,500 shares, including 1,402,500 shares pursuant to the underwriters’ exercise in full of an option to purchase additional shares. QTS received net proceeds, after deducting the underwriting discount and estimated offering expenses payable, of approximately $166.0 million. The Company contributed the net proceeds to the Operating Partnership and used the net proceeds to repay amounts outstanding under the unsecured revolving credit facility. The Company did not receive any proceeds from the offering of shares by the selling stockholder. | |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | QTS REALTY TRUST, INC. | ||||||||||||||||
QUALITYTECH, LP | |||||||||||||||||
CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||||
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Year Ended December 31, | Balance at | Charge to | Additions/ | Balance at | |||||||||||||
beginning of | expenses | (Deductions) | end of period | ||||||||||||||
period | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||
Allowance for doubtful accounts | |||||||||||||||||
2014 | $ | 945 | $ | 600 | $ | 2,203 | $ | 3,748 | |||||||||
2013 | 456 | 545 | (56 | ) | 945 | ||||||||||||
2012 | 321 | (192 | ) | 327 | 456 | ||||||||||||
Valuation allowance for deferred tax assets | |||||||||||||||||
2014 | $ | 1,365 | $ | — | $ | 2,030 | $ | 3,395 | |||||||||
2013 | 1,871 | — | (506 | ) | 1,365 | ||||||||||||
2012 | 144 | — | 1,727 | 1,871 | |||||||||||||
Qualitytech, LP [Member] | |||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | QTS REALTY TRUST, INC. | ||||||||||||||||
QUALITYTECH, LP | |||||||||||||||||
CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||||
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Year Ended December 31, | Balance at | Charge to | Additions/ | Balance at | |||||||||||||
beginning of | expenses | (Deductions) | end of period | ||||||||||||||
period | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||
Allowance for doubtful accounts | |||||||||||||||||
2014 | $ | 945 | $ | 600 | $ | 2,203 | $ | 3,748 | |||||||||
2013 | 456 | 545 | (56 | ) | 945 | ||||||||||||
2012 | 321 | (192 | ) | 327 | 456 | ||||||||||||
Valuation allowance for deferred tax assets | |||||||||||||||||
2014 | $ | 1,365 | $ | — | $ | 2,030 | $ | 3,395 | |||||||||
2013 | 1,871 | — | (506 | ) | 1,365 | ||||||||||||
2012 | 144 | — | 1,727 | 1,871 | |||||||||||||
Schedule_III_Real_Estate_Inves
Schedule III - Real Estate Investments | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||
Schedule III - Real Estate Iinvestments | QTS REALTY TRUST, INC. | ||||||||||||||||||||||||||||||||||||||||||||
QUALITYTECH, LP | |||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||||||||||||||||||||||||||||||||
SCHEDULE III — REAL ESTATE INVESTMENTS | |||||||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2014 | Initial Costs | Costs Capitalized | Gross Carrying Amount | Accumulated | Date of | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Subsequent to Acquisition | Depreciation | Acquisition | ||||||||||||||||||||||||||||||||||||||||||
and | |||||||||||||||||||||||||||||||||||||||||||||
Property Location | Land | Buildings and | Construction | Land | Buildings and | Construction | Land | Buildings and | Construction | Amortization | |||||||||||||||||||||||||||||||||||
Improvements | in Progress | Improvements | in Progress | Improvements | in Progress | ||||||||||||||||||||||||||||||||||||||||
Owned Properties | |||||||||||||||||||||||||||||||||||||||||||||
Suwanee, Georgia | $ | 1,395 | $ | 29,802 | $ | — | $ | 2,126 | $ | 109,189 | $ | 6,345 | $ | 3,521 | $ | 138,991 | $ | 6,345 | $ | (41,761 | ) | 9/1/05 | |||||||||||||||||||||||
Atlanta, Georgia (Metro) | 12,647 | 35,473 | — | 2,750 | 320,649 | 22,693 | 15,397 | 356,122 | 22,693 | (76,031 | ) | 10/3/06 | |||||||||||||||||||||||||||||||||
Santa Clara, California* | — | 15,838 | — | — | 74,494 | 650 | — | 90,332 | 650 | (23,672 | ) | 11/1/07 | |||||||||||||||||||||||||||||||||
Richmond, Virginia | 2,000 | 11,200 | — | 180 | 115,880 | 71,794 | 2,180 | 127,080 | 71,794 | (15,589 | ) | 3/20/10 | |||||||||||||||||||||||||||||||||
Sacramento, California | 1,481 | 52,753 | — | — | 7,341 | 278 | 1,481 | 60,094 | 278 | (2,899 | ) | 12/21/12 | |||||||||||||||||||||||||||||||||
Princeton, New Jersey | 17,976 | 35,865 | — | — | 86 | 90 | 17,976 | 35,951 | 90 | (465 | ) | 6/30/14 | |||||||||||||||||||||||||||||||||
Dallas-Fort Worth, Texas | — | 5,808 | — | 5,808 | 38,245 | 89,982 | 5,808 | 44,053 | 89,982 | (994 | ) | 2/8/13 | |||||||||||||||||||||||||||||||||
Chicago, Illinois | — | — | 17,764 | — | — | 4,022 | — | — | 21,786 | — | 7/8/14 | ||||||||||||||||||||||||||||||||||
Miami, Florida | 1,777 | 6,955 | — | — | 21,831 | 129 | 1,777 | 28,786 | 129 | (6,814 | ) | 3/6/08 | |||||||||||||||||||||||||||||||||
Lenexa, Kansas | 400 | 3,100 | — | 37 | 198 | 25 | 437 | 3,298 | 25 | (8 | ) | 6/3/11 | |||||||||||||||||||||||||||||||||
Wichita, Kansas | — | 686 | — | — | 723 | — | — | 1,409 | — | (550 | ) | 3/31/05 | |||||||||||||||||||||||||||||||||
$ | 37,676 | $ | 197,480 | $ | 17,764 | $ | 10,901 | $ | 688,636 | $ | 196,008 | $ | 48,577 | $ | 886,116 | $ | 213,772 | $ | (168,783 | ) | |||||||||||||||||||||||||
Leased Properties | |||||||||||||||||||||||||||||||||||||||||||||
Jersey City, New Jersey | — | 1,985 | — | — | 25,333 | 920 | — | 27,318 | 920 | (10,879 | ) | 11/1/06 | |||||||||||||||||||||||||||||||||
Overland Park, Kansas | — | — | — | — | 852 | 27 | — | 852 | 27 | (505 | ) | ||||||||||||||||||||||||||||||||||
— | 1,985 | — | — | 26,185 | 947 | — | 28,170 | 947 | (11,384 | ) | |||||||||||||||||||||||||||||||||||
$ | 37,676 | $ | 199,465 | $ | 17,764 | $ | 10,901 | $ | 714,821 | $ | 196,955 | $ | 48,577 | $ | 914,286 | $ | 214,719 | $ | (180,167 | ) | |||||||||||||||||||||||||
* | Owned facility subject to long-term ground sublease. | ||||||||||||||||||||||||||||||||||||||||||||
The following table reconciles the historical cost and accumulated depreciation for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||
Property | |||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 905,735 | $ | 734,828 | $ | 555,586 | |||||||||||||||||||||||||||||||||||||||
Disposals | (54 | ) | — | (794 | ) | ||||||||||||||||||||||||||||||||||||||||
Additions (acquisitions and improvements) | 271,901 | 170,907 | 180,036 | ||||||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | 1,177,582 | $ | 905,735 | $ | 734,828 | |||||||||||||||||||||||||||||||||||||||
Accumulated depreciation | |||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | (137,725 | ) | $ | (102,900 | ) | $ | (74,536 | ) | ||||||||||||||||||||||||||||||||||||
Disposals | 39 | — | 162 | ||||||||||||||||||||||||||||||||||||||||||
Additions (depreciation and amortization expense) | (42,481 | ) | (34,825 | ) | (28,526 | ) | |||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | (180,167 | ) | $ | (137,725 | ) | $ | (102,900 | ) | ||||||||||||||||||||||||||||||||||||
Qualitytech, LP [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Schedule III - Real Estate Iinvestments | QTS REALTY TRUST, INC. | ||||||||||||||||||||||||||||||||||||||||||||
QUALITYTECH, LP | |||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||||||||||||||||||||||||||||||||
SCHEDULE III — REAL ESTATE INVESTMENTS | |||||||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2014 | Initial Costs | Costs Capitalized | Gross Carrying Amount | Accumulated | Date of | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Subsequent to Acquisition | Depreciation | Acquisition | ||||||||||||||||||||||||||||||||||||||||||
and | |||||||||||||||||||||||||||||||||||||||||||||
Property Location | Land | Buildings and | Construction | Land | Buildings and | Construction | Land | Buildings and | Construction | Amortization | |||||||||||||||||||||||||||||||||||
Improvements | in Progress | Improvements | in Progress | Improvements | in Progress | ||||||||||||||||||||||||||||||||||||||||
Owned Properties | |||||||||||||||||||||||||||||||||||||||||||||
Suwanee, Georgia | $ | 1,395 | $ | 29,802 | $ | — | $ | 2,126 | $ | 109,189 | $ | 6,345 | $ | 3,521 | $ | 138,991 | $ | 6,345 | $ | (41,761 | ) | 9/1/05 | |||||||||||||||||||||||
Atlanta, Georgia (Metro) | 12,647 | 35,473 | — | 2,750 | 320,649 | 22,693 | 15,397 | 356,122 | 22,693 | (76,031 | ) | 10/3/06 | |||||||||||||||||||||||||||||||||
Santa Clara, California* | — | 15,838 | — | — | 74,494 | 650 | — | 90,332 | 650 | (23,672 | ) | 11/1/07 | |||||||||||||||||||||||||||||||||
Richmond, Virginia | 2,000 | 11,200 | — | 180 | 115,880 | 71,794 | 2,180 | 127,080 | 71,794 | (15,589 | ) | 3/20/10 | |||||||||||||||||||||||||||||||||
Sacramento, California | 1,481 | 52,753 | — | — | 7,341 | 278 | 1,481 | 60,094 | 278 | (2,899 | ) | 12/21/12 | |||||||||||||||||||||||||||||||||
Princeton, New Jersey | 17,976 | 35,865 | — | — | 86 | 90 | 17,976 | 35,951 | 90 | (465 | ) | 6/30/14 | |||||||||||||||||||||||||||||||||
Dallas-Fort Worth, Texas | — | 5,808 | — | 5,808 | 38,245 | 89,982 | 5,808 | 44,053 | 89,982 | (994 | ) | 2/8/13 | |||||||||||||||||||||||||||||||||
Chicago, Illinois | — | — | 17,764 | — | — | 4,022 | — | — | 21,786 | — | 7/8/14 | ||||||||||||||||||||||||||||||||||
Miami, Florida | 1,777 | 6,955 | — | — | 21,831 | 129 | 1,777 | 28,786 | 129 | (6,814 | ) | 3/6/08 | |||||||||||||||||||||||||||||||||
Lenexa, Kansas | 400 | 3,100 | — | 37 | 198 | 25 | 437 | 3,298 | 25 | (8 | ) | 6/3/11 | |||||||||||||||||||||||||||||||||
Wichita, Kansas | — | 686 | — | — | 723 | — | — | 1,409 | — | (550 | ) | 3/31/05 | |||||||||||||||||||||||||||||||||
$ | 37,676 | $ | 197,480 | $ | 17,764 | $ | 10,901 | $ | 688,636 | $ | 196,008 | $ | 48,577 | $ | 886,116 | $ | 213,772 | $ | (168,783 | ) | |||||||||||||||||||||||||
Leased Properties | |||||||||||||||||||||||||||||||||||||||||||||
Jersey City, New Jersey | — | 1,985 | — | — | 25,333 | 920 | — | 27,318 | 920 | (10,879 | ) | 11/1/06 | |||||||||||||||||||||||||||||||||
Overland Park, Kansas | — | — | — | — | 852 | 27 | — | 852 | 27 | (505 | ) | ||||||||||||||||||||||||||||||||||
— | 1,985 | — | — | 26,185 | 947 | — | 28,170 | 947 | (11,384 | ) | |||||||||||||||||||||||||||||||||||
$ | 37,676 | $ | 199,465 | $ | 17,764 | $ | 10,901 | $ | 714,821 | $ | 196,955 | $ | 48,577 | $ | 914,286 | $ | 214,719 | $ | (180,167 | ) | |||||||||||||||||||||||||
* | Owned facility subject to long-term ground sublease. | ||||||||||||||||||||||||||||||||||||||||||||
The following table reconciles the historical cost and accumulated depreciation for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||
Property | |||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 905,735 | $ | 734,828 | $ | 555,586 | |||||||||||||||||||||||||||||||||||||||
Disposals | (54 | ) | — | (794 | ) | ||||||||||||||||||||||||||||||||||||||||
Additions (acquisitions and improvements) | 271,901 | 170,907 | 180,036 | ||||||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | 1,177,582 | $ | 905,735 | $ | 734,828 | |||||||||||||||||||||||||||||||||||||||
Accumulated depreciation | |||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | (137,725 | ) | $ | (102,900 | ) | $ | (74,536 | ) | ||||||||||||||||||||||||||||||||||||
Disposals | 39 | — | 162 | ||||||||||||||||||||||||||||||||||||||||||
Additions (depreciation and amortization expense) | (42,481 | ) | (34,825 | ) | (28,526 | ) | |||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | (180,167 | ) | $ | (137,725 | ) | $ | (102,900 | ) | ||||||||||||||||||||||||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||
Dec. 31, 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. | ||||||||||||||||
The accompanying financial statements are presented for both QTS Realty Trust, Inc. and QualityTech, LP. References to “QTS” mean QTS Realty Trust, Inc. and its controlled subsidiaries; and references to the “Operating Partnership” mean QualityTech, LP and its controlled subsidiaries. | |||||||||||||||||
Management operates QTS and the Operating Partnership as one business. The management of QTS consists of the same employees as the management of the Operating Partnership. QTS is the sole general partner of the Operating Partnership, and its only material asset consisted of its ownership interest in the Operating Partnership. QTS does not conduct business itself, other than acting as the sole general partner of the Operating Partnership and issuing public equity from time to time. QTS has not issued or guaranteed any indebtedness. Except for net proceeds from public equity issuances by QTS, which are contributed to the Operating Partnership in exchange for units of limited partnership interest of the Operating Partnership, the Operating Partnership generates all remaining capital required by our business through its operations, the direct or indirect incurrence of indebtedness, and the issuance of partnership units. Therefore, as general partner with control of the Operating Partnership, QTS consolidates the Operating Partnership for financial reporting purposes. | |||||||||||||||||
The Company believes, therefore, that providing one set of notes for the financial statements of QTS and the Operating Partnership provides the following benefits: | |||||||||||||||||
• | enhances investors’ understanding of QTS and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business; | ||||||||||||||||
• | eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the disclosure applies to both QTS and the Operating Partnership; and | ||||||||||||||||
• | creates time and cost efficiencies through the preparation of one set of notes instead of two separate sets of notes. | ||||||||||||||||
In addition, in light of these combined notes, the Company believes it is important for investors to understand the few differences between QTS and the Operating Partnership in the context of how QTS and the Operating Partnership operate as a consolidated company. The presentation of stockholders’ equity and partners’ capital are the main areas of difference between the consolidated balance sheets of QTS and those of the Operating Partnership. The Operating Partnership’s capital includes general and limited common units that are owned by QTS and the other partners. QTS’ stockholders’ equity includes common stock, additional paid in capital, accumulated other comprehensive income (loss) and accumulated dividends in excess of earnings. The remaining equity is the portion of net assets that are retained by partners other than QTS, referred to as noncontrolling interests. The primary difference in QTS’ Statements of Operations and Comprehensive Income (Loss) is that for net income (loss), QTS retains its proportionate share of the net income (loss) based on its ownership of the Operating Partnership, with the remaining balance being retained by the Operating Partnership. These combined notes refer to actions or holdings as being actions or holdings of “the Company.” Although the Operating Partnership is generally the entity that enters into contracts, holds assets and issues debt, management believes that these general references to “the Company” in this context is appropriate because the business is one enterprise operated through the Operating Partnership. | |||||||||||||||||
As discussed above, QTS owns no operating assets and has no operations independent of the Operating Partnership and its subsidiaries. Obligations under the 5.875% Senior Notes due 2022 and the unsecured credit facility, both discussed in Note 5, are fully, unconditionally, and jointly and severally guaranteed by the Operating Partnership’s existing subsidiaries, other than QTS Finance Corporation, the co-issuer of the 5.875% Senior Notes due 2022. As such, condensed consolidating financial information for the guarantors is not being presented in the notes to the condensed consolidated financial statements. However, the indenture governing the 5.875% Senior Notes due 2022 restricts the ability of the Operating Partnership to make distributions to QTS, subject to certain exceptions, including distributions required in order for QTS to maintain its status as a real estate investment trust under the Internal Revenue Code of 1986, as amended. | |||||||||||||||||
The consolidated financial statements of QTS Realty Trust, Inc. for the period from October 15, 2013 through December 31, 2014 include the accounts of QTS Realty Trust, Inc. and its majority owned subsidiaries. This includes the operating results of the Operating Partnership for the period from October 15, 2013 through December 31, 2013. While the Company was formed on May 17, 2013, the Company had no independent operations prior to October 15, 2013. The historical predecessor financial statements for the periods ended October 14, 2013 and December 31, 2012 include the accounts of QualityTech, LP and its majority owned subsidiaries. | |||||||||||||||||
Use of Estimates | Use of Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of fixed assets, allowances for doubtful accounts and deferred tax assets and the valuation of derivatives, real estate assets, acquired intangible assets and certain accruals. | ||||||||||||||||
Principles of Consolidation | Principles of Consolidation — The consolidated financial statements of QTS Realty Trust, Inc. include the accounts of QTS Realty Trust, Inc. and its majority-owned subsidiaries. The consolidated financial statements of QualityTech, LP include the accounts of QualityTech, LP and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in the financial statements. | ||||||||||||||||
Real Estate Assets | Real Estate Assets — Real estate assets are reported at cost. All capital improvements for the income-producing properties that extend their useful lives are capitalized to individual property improvements and depreciated over their estimated useful lives. Depreciation for real estate assets is generally provided on a straight-line basis over 40 years from the date the property was placed in service. Property improvements are depreciated on a straight-line basis over the life of the respective improvement ranging from 20 to 40 years from the date the components were placed in service. Leasehold improvements are depreciated over the lesser of 20 years or through the end of the respective life of the lease. Repairs and maintenance costs are expensed as incurred. Depreciation expense was $45.4 million, $36.7 million and $29.8 million for the years ended December 31, 2014, 2013 and 2012, 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 $10.6 million, $8.5 million and $6.7 million for the years ended December 31, 2014, 2013 and 2012, respectively. Interest is capitalized during the period of development by first applying the Company’s actual borrowing rate on the related asset and second, to the extent necessary, by applying the Company’s weighted average effective borrowing rate to the actual 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 $6.5 million, $4.1 million and $2.2 million for the years ended December 31, 2014, 2013 and 2012, 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 with the accounting requirements of ASC 805, Business Combinations, which requires the recording of net assets of acquired businesses at fair value. The fair value of the 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 totaled $2.2 million and $2.6 million for the years ended December 31, 2014 and 2013, respectively, with no material amortization for the year ended December 31, 2012. | |||||||||||||||||
Acquired customer relationships are amortized as amortization expense on a straight-line basis over the expected life of the customer relationship. Amortization of acquired customer relationships totaled $1.3 million, $1.5 million and $0.6 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||
See Note 3 for discussion of the preliminary purchase price allocation for the Princeton facility that the Company acquired on June 30, 2014. | |||||||||||||||||
Impairment of Long-Lived and Intangible Asset | 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 any of the years ended December 31, 2014, 2013 and 2012, 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. | ||||||||||||||||
Restricted Cash | Restricted Cash — Restricted cash includes accounts restricted by the Company’s loan agreements and escrow deposits for interest, insurance, taxes and capital improvements held by the various banks and financial institutions as required by the loan agreements. Such deposits are held in bank checking or investment accounts with original maturities of three months or less. | ||||||||||||||||
Deferred Costs | Deferred Costs — Deferred costs, net, on the Company’s balance sheets include both financing costs and leasing costs. | ||||||||||||||||
Deferred financing costs represent fees and other costs incurred in connection with obtaining debt and are amortized over the term of the loan and are included in interest expense. Amortization of the deferred financing costs was $2.7 million, $2.8 million and $3.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. During the year ended December 31, 2014, the Company wrote off unamortized financing costs of $0.9 million primarily in connection with paying down $75 million of its unsecured credit facility, as well as modifying the unsecured credit facility in December 2014. In addition, the Company also made modifications to its Richmond credit facility which resulted in the write off of certain deferred financing costs. During the year ended December 31, 2013, the Company wrote off unamortized financing costs of $2.2 million in connection with the expansion of its revolving and term credit facilities. In addition, during the year ended December 31, 2013, the Company wrote off unamortized financing costs of $1.3 million in connection with an asset securitization which the Company stopped pursuing due to the expansion of the credit facility. Deferred financing costs, net of accumulated amortization are as follows: | |||||||||||||||||
(dollars in thousands) | December 31, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Deferred financing costs | $ | 18,152 | $ | 9,159 | |||||||||||||
Accumulated amortization | (1,683 | ) | (1,867 | ) | |||||||||||||
Deferred financing costs, net | $ | 16,469 | $ | 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 $6.4 million, $4.7 million and $3.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. Deferred leasing costs, net of accumulated amortization are as follows (excluding $3.2 million related to a leasing arrangement at the Company’s Princeton facility in 2014): | |||||||||||||||||
(dollars in thousands) | December 31, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Deferred leasing costs | $ | 26,799 | $ | 17,374 | |||||||||||||
Accumulated amortization | (9,378 | ) | (5,516 | ) | |||||||||||||
Deferred leasing costs, net | $ | 17,421 | $ | 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 $10.5 million, $7.9 million and $6.8 million as of December 31, 2014, 2013 and 2012, respectively. Additionally, $4.7 million, $4.7 million and $4.3 million of deferred income were amortized into revenue for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||
Interest Rate Derivative Instruments | Interest Rate Derivative Instruments — The Company utilizes derivatives to manage its interest rate exposure. During February 2012, the Company entered into interest rate swaps with a notional amount of $150 million which were cash flow hedges and qualified for hedge accounting. For these hedges, the effective portion of the change in fair value was recognized through other comprehensive income or loss. Amounts were reclassified out of other comprehensive income (loss) as the hedged item was recognized in earnings, either for ineffectiveness or for amounts paid relating to the hedge. The Company reflected all changes in the fair value of the swaps in other comprehensive income (loss) during the year ended December 31, 2014, as there was no ineffectiveness recorded in that period. The Company’s interest rate swaps matured on September 28, 2014, and as such, there are no amounts outstanding on the consolidated balance sheet at December 31, 2014 relating to these swaps. | ||||||||||||||||
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 $4.2 million, $2.0 million and $0.4 million for the years ended December 31, 2014, 2013 and 2012, 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 $4.0 million and $2.9 million as of December 31, 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 $3.7 million and $0.9 million as of December 31, 2014 and 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 $13.1 million and $2.5 million as of December 31, 2014 and 2013, respectively. The value of the assets associated with these leases approximates the outstanding obligations as of December 31, 2014 and 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 December 31, 2014, one of the Company’s customers represented 9.0% of its total monthly rental revenue. No other customers exceeded 5% of total monthly rental revenue. | ||||||||||||||||
As of December 31, 2014, five of the Company’s customers exceeded 5% of total accounts receivable. In aggregate, these five customers accounted for 67% of total accounts receivable. Two of these five customers accounted for 32% and 18%, respectively, 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 pursuant to the REIT rules of the U.S. Internal Revenue Code. | ||||||||||||||||
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 taxable REIT subsidiary offsets a valuation allowance against deferred tax assets if, based on management’s assessment of operating results and other available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The taxable subsidiary did not generate taxable income for the years ended December 31, 2014, 2013 or 2012. Accordingly, no provision for income taxes was recorded nor was an income tax benefit recorded for the last five years. Due to the lack of sufficient historical evidence to indicate it is more likely than not that the deferred tax assets will be utilized, the valuation allowance relating to deferred tax assets continues to be recorded at December 31, 2014. The change in valuation allowance during 2014 was an increase of $2.0 million to $3.4 million. | |||||||||||||||||
Temporary differences and carry forwards which give rise to the deferred tax assets and liabilities are as follows: | |||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Deferred tax liabilities | |||||||||||||||||
Property and equipment | $ | (5,784 | ) | $ | (4,905 | ) | $ | (4,852 | ) | ||||||||
Other | (1,427 | ) | (873 | ) | (551 | ) | |||||||||||
Gross deferred tax liabilities | (7,211 | ) | (5,778 | ) | (5,403 | ) | |||||||||||
Deferred tax assets | |||||||||||||||||
Net operating loss carryforwards | 9,137 | 5,861 | 6,694 | ||||||||||||||
Deferred revenue and setup charges | 868 | 583 | 467 | ||||||||||||||
Derivative liability | — | — | — | ||||||||||||||
Other | 601 | 699 | 113 | ||||||||||||||
Gross deferred tax assets | 10,606 | 7,143 | 7,274 | ||||||||||||||
Net deferred tax assets | 3,395 | 1,365 | 1,871 | ||||||||||||||
Valuation allowance | (3,395 | ) | (1,365 | ) | (1,871 | ) | |||||||||||
Net deferred | $ | — | $ | — | $ | — | |||||||||||
The taxable REIT subsidiary currently has $24.1 million of net operating loss carryforwards related to federal income taxes that expire in 15 – 20 years. The taxable REIT subsidiary also has $20.1 million of net operating loss carryforwards relating to state income taxes that expire in 5 – 20 years. | |||||||||||||||||
As of December 31, 2014 and 2013, the Company has no uncertain tax positions. If the Company incurs any interest or penalties on tax liabilities from significant uncertain tax positions, those items will be classified as interest expense and general and administrative expense, respectively, in the Statements of Operations and Comprehensive Income (Loss). For the years ended December 31, 2014, 2013 and 2012, the Company had no such interest or penalties. | |||||||||||||||||
The Company is not currently under examination by the Internal Revenue Service. | |||||||||||||||||
Fair Value Measurements | Fair Value Measurements — ASC Topic 820, Fair Value 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 December 31, 2014 and 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 December 31, 2014 and 2013 (dollars in thousands): | |||||||||||||||||
Carrying | Fair Value Measurements | ||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
31-Dec-14 | |||||||||||||||||
Financial Liabilities: | |||||||||||||||||
Interest rate swap liability(1) | $ | — | $ | — | $ | — | $ | — | |||||||||
31-Dec-13 | |||||||||||||||||
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 at December 31, 2013. The fair value measurement of the interest rate swaps have been classified as Level 2. The swaps matured on September 28, 2014, and as such, there were no amounts outstanding on the consolidated balance sheet as of December 31, 2014 related to interest rate swaps. | ||||||||||||||||
New Accounting Pronouncements | 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. | |||||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Deferred Financing Costs, Net of Accumulated Amortization | Deferred financing costs, net of accumulated amortization are as follows: | ||||||||||||||||
(dollars in thousands) | December 31, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Deferred financing costs | $ | 18,152 | $ | 9,159 | |||||||||||||
Accumulated amortization | (1,683 | ) | (1,867 | ) | |||||||||||||
Deferred financing costs, net | $ | 16,469 | $ | 7,292 | |||||||||||||
Deferred Leasing Costs, Net of Accumulated Amortization | Deferred leasing costs, net of accumulated amortization are as follows (excluding $3.2 million related to a leasing arrangement at the Company’s Princeton facility in 2014): | ||||||||||||||||
(dollars in thousands) | December 31, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Deferred leasing costs | $ | 26,799 | $ | 17,374 | |||||||||||||
Accumulated amortization | (9,378 | ) | (5,516 | ) | |||||||||||||
Deferred leasing costs, net | $ | 17,421 | $ | 11,858 | |||||||||||||
Summary of Temporary Differences and Carry Forwards Which Give Rise to the Deferred Tax Assets and Liabilities | Temporary differences and carry forwards which give rise to the deferred tax assets and liabilities are as follows: | ||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Deferred tax liabilities | |||||||||||||||||
Property and equipment | $ | (5,784 | ) | $ | (4,905 | ) | $ | (4,852 | ) | ||||||||
Other | (1,427 | ) | (873 | ) | (551 | ) | |||||||||||
Gross deferred tax liabilities | (7,211 | ) | (5,778 | ) | (5,403 | ) | |||||||||||
Deferred tax assets | |||||||||||||||||
Net operating loss carryforwards | 9,137 | 5,861 | 6,694 | ||||||||||||||
Deferred revenue and setup charges | 868 | 583 | 467 | ||||||||||||||
Derivative liability | — | — | — | ||||||||||||||
Other | 601 | 699 | 113 | ||||||||||||||
Gross deferred tax assets | 10,606 | 7,143 | 7,274 | ||||||||||||||
Net deferred tax assets | 3,395 | 1,365 | 1,871 | ||||||||||||||
Valuation allowance | (3,395 | ) | (1,365 | ) | (1,871 | ) | |||||||||||
Net deferred | $ | — | $ | — | $ | — | |||||||||||
Financial Instruments Held at Fair Value | The Company’s financial instruments held at fair value are presented below as of December 31, 2014 and 2013 (dollars in thousands): | ||||||||||||||||
Carrying | Fair Value Measurements | ||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
31-Dec-14 | |||||||||||||||||
Financial Liabilities: | |||||||||||||||||
Interest rate swap liability(1) | $ | — | $ | — | $ | — | $ | — | |||||||||
31-Dec-13 | |||||||||||||||||
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 at December 31, 2013. The fair value measurement of the interest rate swaps have been classified as Level 2. The swaps matured on September 28, 2014, and as such, there were no amounts outstanding on the consolidated balance sheet as of December 31, 2014 related to interest rate swaps. | ||||||||||||||||
Acquisitions_of_Real_Estate_Ta
Acquisitions of Real Estate (Tables) | 12 Months Ended | ||||||||
Dec. 31, 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 Princeton facility and the preliminary allocation of the fair value of assets acquired as of December 31, 2014 (in thousands): | ||||||||
Princeton facility | Weighted | ||||||||
as of | average | ||||||||
December 31, | useful life | ||||||||
2014 | |||||||||
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) | 12 Months Ended | ||||||||||||||||
Dec. 31, 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 December 31, 2014 and 2013 (in thousands): | ||||||||||||||||
As of December 31, 2014: | |||||||||||||||||
Property Location | Land | Buildings and | Construction | Total Cost | |||||||||||||
Improvements | in Progress | ||||||||||||||||
Owned Properties | |||||||||||||||||
Suwanee, Georgia (Atlanta-Suwanee) | $ | 3,521 | $ | 138,991 | 6,345 | $ | 148,857 | ||||||||||
Atlanta, Georgia (Atlanta-Metro) | 15,397 | 356,122 | 22,693 | 394,212 | |||||||||||||
Santa Clara, California* | — | 90,332 | 650 | 90,982 | |||||||||||||
Richmond, Virginia | 2,180 | 127,080 | 71,794 | 201,054 | |||||||||||||
Sacramento, California | 1,481 | 60,094 | 278 | 61,853 | |||||||||||||
Princeton, New Jersey | 17,976 | 35,951 | 90 | 54,017 | |||||||||||||
Dallas-Fort Worth, Texas | 5,808 | 44,053 | 89,982 | 139,843 | |||||||||||||
Chicago, Illinois | — | — | 21,786 | 21,786 | |||||||||||||
Miami, Florida | 1,777 | 28,786 | 129 | 30,692 | |||||||||||||
Lenexa, Kansas | 437 | 3,298 | 25 | 3,760 | |||||||||||||
Wichita, Kansas | — | 1,409 | — | 1,409 | |||||||||||||
48,577 | 886,116 | 213,772 | 1,148,465 | ||||||||||||||
Leased Properties | |||||||||||||||||
Jersey City, New Jersey | — | 27,318 | 920 | 28,238 | |||||||||||||
Overland Park, Kansas | — | 852 | ** | 27 | 879 | ||||||||||||
— | 28,170 | 947 | 29,117 | ||||||||||||||
$ | 48,577 | $ | 914,286 | $ | 214,719 | $ | 1,177,582 | ||||||||||
* | Owned facility subject to long-term ground sublease. | ||||||||||||||||
** | This does not include the portion of the business that is used for QTS office space or other real estate not used by customers. | ||||||||||||||||
As of December 31, 2013: | |||||||||||||||||
Property Location | Land | Buildings and | Construction | Total Cost | |||||||||||||
Improvements | in 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-Fort Worth, 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. | ||||||||||||||||
** | This does not include the portion of the business that is used for QTS office space or other real estate not used by customers. | ||||||||||||||||
Credit_Facilities_Senior_Notes1
Credit Facilities Senior Notes and Mortgage Notes Payable (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Outstanding Debt Excluding Capital Leases | Below is a listing of our outstanding debt, excluding capital leases, as of December 31, 2014 and 2013 (in thousands): | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Unsecured Credit Facility | $ | 239,838 | $ | 256,500 | |||||
Senior Notes, net of discount | 297,729 | — | |||||||
Richmond Credit Facility | 70,000 | 70,000 | |||||||
Atlanta-Metro Equipment Loan | 16,600 | 18,839 | |||||||
Total | $ | 624,167 | $ | 345,339 | |||||
Annual Remaining Principal Payment | The annual remaining principal payment requirements as of December 31, 2014 per the contractual maturities and excluding extension options are as follows (in thousands): | ||||||||
2015 | $ | 2,397 | |||||||
2016 | 2,567 | ||||||||
2017 | 2,748 | ||||||||
2018 | 142,781 | ||||||||
2019 | 173,150 | ||||||||
Thereafter | 302,795 | ||||||||
Total | $ | 626,438 | |||||||
Partners_Capital_Equity_and_In1
Partners' Capital, Equity and Incentive Compensation Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||
Summary of Award Activity Under 2010 Equity Incentive Plan and 2013 Equity Incentive Plan and Related Information | The following is a summary of award activity under the 2010 Equity Incentive Plan and 2013 Equity Incentive Plan and related information for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||||||||||
2010 Equity Incentive Plan | 2013 Equity Incentive Plan | |||||||||||||||||||||||||||
Number of | Weighted | Weighted | Number of | Weighted | Options | Weighted | Weighted | Restricted | Weighted | |||||||||||||||||||
Class O | average | average | Class RS | average | average | average | Stock | average | ||||||||||||||||||||
units | exercise | fair value | units | price | exercise | fair value | price | |||||||||||||||||||||
price | price | |||||||||||||||||||||||||||
Outstanding at January 1, 2012 | 699,368 | $ | 20 | $ | 4.38 | 50,000 | $ | — | — | $ | — | $ | — | — | $ | — | ||||||||||||
Granted | 908,925 | 25 | $ | 1.99 | 150,000 | — | — | — | — | — | — | |||||||||||||||||
Exercised | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
Released from restriction(1) | — | — | — | -21,250 | — | — | — | — | — | — | ||||||||||||||||||
Cancelled/Expired | -136,350 | — | 4.41 | — | — | — | — | — | — | — | ||||||||||||||||||
Outstanding at December 31, 2012 | 1,471,943 | $ | 23.09 | $ | 2.84 | 178,750 | $ | — | — | $ | — | $ | — | — | $ | — | ||||||||||||
Granted | 224,244 | 25 | 10.62 | — | — | 370,410 | 21 | 3.5 | 108,629 | 21 | ||||||||||||||||||
Exercised | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
Released from restriction(1) | — | — | — | -5,000 | — | — | — | — | — | — | ||||||||||||||||||
Cancelled/Expired | -73,440 | — | 5.31 | — | — | -2,500 | — | 3.52 | — | — | ||||||||||||||||||
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 | — | — | — | — | — | 238,039 | 25.59 | 4.96 | 172,102 | 32.66 | ||||||||||||||||||
Exercised(2) | -15,750 | 20.71 | 4.75 | — | — | -3,000 | 21 | 3.52 | -25,786 | 21 | ||||||||||||||||||
Released from restriction(1) | — | — | — | -99,125 | — | — | — | — | — | — | ||||||||||||||||||
Cancelled/Expired(3) | -88,280 | 26.7 | 6.05 | — | — | -18,000 | 21 | 3.52 | -8,160 | 21 | ||||||||||||||||||
Outstanding at December 31, 2014 | 1,518,717 | $ | 23.49 | $ | 3.75 | 74,625 | $ | 23.49 | 584,949 | $ | 22.87 | $ | 4.1 | 246,785 | $ | 29.13 | ||||||||||||
-1 | This represents Class RS units that upon vesting have converted to Operating Partnership units. | |||||||||||||||||||||||||||
-2 | This represents the Class A common stock that has been released from restriction and which was not surrendered by the holder to satisfy their statutory minimum federal and state tax obligations associated with the vesting of restricted common stock. | |||||||||||||||||||||||||||
-3 | Includes 8,160 of restricted Class A common stock surrendered by certain employees to satisfy their statutory minimum federal and state tax obligations associated with the vesting of restricted common stock. | |||||||||||||||||||||||||||
Summary of Assumptions and Fair Values for Restricted Stock and Options to Purchase Shares of Class A Common Stock Granted | The assumptions and fair values for Class O units, Class RS units, restricted stock and options to purchase shares of Class A common stock granted for the years ended December 31, 2014, 2013 and 2012 are included in the following table on a per unit basis. Class O units and options to purchase shares of Class A common stock were valued using the Black-Scholes model. | |||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Fair value of Class RS Units granted | $ | — | $ | — | $ | 7.15 | ||||||||||||||||||||||
Fair value of Class O Units granted | $ | — | $ | 10.26 – $10.92 | $ | 1.79 – $2.32 | ||||||||||||||||||||||
Fair value of restricted stock granted | $ | 25.51 – $35.51 | $ | 21 | $ | — | ||||||||||||||||||||||
Fair value of options granted | $ | 4.94 – $5.98 | $ | 3.45 – $3.52 | $ | — | ||||||||||||||||||||||
Expected term (years) | 5.5 – 6.1 | 5.5 – 7.0 | 4 | |||||||||||||||||||||||||
Expected volatility | 33 | % | 32% – 40 | % | 55 | % | ||||||||||||||||||||||
Expected dividend yield | 4.02 – 4.55 | % | 5.5 | % | 0 | % | ||||||||||||||||||||||
Expected risk-free interest rates | 1.7 – 1.9 | % | 1.4% – 1.8 | % | 0.17 | % | ||||||||||||||||||||||
Summary of Information About Awards Outstanding | The following table summarizes information about awards outstanding as of December 31, 2014. | |||||||||||||||||||||||||||
Operating Partnership Awards Outstanding | ||||||||||||||||||||||||||||
Exercise | Awards | Weighted | ||||||||||||||||||||||||||
prices | outstanding | average | ||||||||||||||||||||||||||
remaining | ||||||||||||||||||||||||||||
vesting period | ||||||||||||||||||||||||||||
(years) | ||||||||||||||||||||||||||||
Class RS Units | $ | — | 74,625 | 2 | ||||||||||||||||||||||||
Class O Units | $ | 20 – 25 | 1,518,717 | 1 | ||||||||||||||||||||||||
Total Operating Partnership awards outstanding | 1,593,342 | |||||||||||||||||||||||||||
QTS Realty Trust, Inc. Awards Outstanding | ||||||||||||||||||||||||||||
Exercise | Awards | Weighted | ||||||||||||||||||||||||||
prices | outstanding | average | ||||||||||||||||||||||||||
remaining | ||||||||||||||||||||||||||||
vesting period | ||||||||||||||||||||||||||||
(years) | ||||||||||||||||||||||||||||
Restricted stock | $ | — | 246,785 | 3 | ||||||||||||||||||||||||
Options to purchase Class A common stock | $ | 21 – 28.82 | 584,949 | 2 | ||||||||||||||||||||||||
Total QTS Realty Trust, Inc. awards outstanding | 831,734 | |||||||||||||||||||||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Related Party Transactions [Abstract] | |||||||||||||
Summary of Related Party Transactions | The transactions which occurred during the years ended December 31, 2014, 2013 and 2012 are outlined below (in thousands): | ||||||||||||
December 31, | |||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | ||||||||||
Tax, utility, insurance and other reimbursement | $ | 692 | $ | 336 | $ | 234 | |||||||
Rent expense | 1,026 | 977 | 572 | ||||||||||
Capital assets acquired | 266 | 625 | 568 | ||||||||||
Total | $ | 1,984 | $ | 1,938 | $ | 1,374 | |||||||
Earnings_per_share_of_QTS_Real1
Earnings per share of QTS Realty Trust, Inc. (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Summary of Basic and Diluted 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, if the effect is not antidilutive. | ||||||||
(in thousands, except per share data) | Year Ended | For the period | |||||||
December 31, | October 15, | ||||||||
2014 | 2013 through | ||||||||
December 31, | |||||||||
2013 | |||||||||
Net income available to common stockholders | $ | 15,072 | $ | 3,154 | |||||
Weighted average shares outstanding – basic | 29,055 | 28,973 | |||||||
Net income per share – basic | $ | 0.52 | $ | 0.11 | |||||
Net income | $ | 19,103 | $ | 4,002 | |||||
Weighted average shares outstanding – diluted(1) | 37,134 | 36,794 | |||||||
Net income per share – diluted | $ | 0.51 | $ | 0.11 | |||||
-1 | Includes 7,770 Class A and Class RS units, 195 “in the money” value of Class O units on an “as if” converted basis and 114 “in the money” value options to purchase shares of Class A common stock on an “as if” converted basis as of the year ended December 31, 2014. As of the year ended December 31, 2013, this amount includes 7,797 Class A and Class RS units and 24 “in the money” value of Class O units on as “as if” converted basis. | ||||||||
Operating_Leases_as_Lessee_Tab
Operating Leases, as Lessee (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases [Abstract] | |||||
Operating Leases of Lessee Disclosure | The future non-cancellable minimum rental payments required under operating leases and/or licenses at December 31, 2014 are as follows (in thousands): | ||||
Year Ending December 31, | |||||
2015 | $ | 5,458 | |||
2016 | 5,533 | ||||
2017 | 5,606 | ||||
2018 | 5,606 | ||||
2019 | 4,591 | ||||
Thereafter | 64,045 | ||||
Total | $ | 90,839 | |||
Customer_Leases_as_Lessor_Tabl
Customer Leases, as Lessor (Tables) | 12 Months Ended | ||||
Dec. 31, 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): | ||||
2015 | $ | 193,310 | |||
2016 | 171,854 | ||||
2017 | 137,121 | ||||
2018 | 106,373 | ||||
2019 | 68,669 | ||||
Thereafter | 215,088 | ||||
Total | $ | 892,415 | |||
Quarterly_Financial_Informatio1
Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Summary of Selected Quarterly Information | The tables below reflect the selected quarterly information for the years ended December 31, 2014 and 2013 for QTS (in thousands except share data): | ||||||||||||||||||||
QTS | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||
2014 | 2014 | 2014 | 2014 | ||||||||||||||||||
Revenues | $ | 59,563 | $ | 57,945 | $ | 51,338 | $ | 48,943 | |||||||||||||
Operating income | 11,682 | 9,913 | 6,266 | 7,413 | |||||||||||||||||
Net income | 5,848 | 4,006 | 3,921 | 5,328 | |||||||||||||||||
Net income attributable to common shares | 4,627 | 3,157 | 3,090 | 4,198 | |||||||||||||||||
Net income per share attributable to common shares – basic | 0.16 | 0.11 | 0.11 | 0.14 | |||||||||||||||||
Net income per share attributable to common shares – diluted | 0.16 | 0.11 | 0.11 | 0.14 | |||||||||||||||||
QTS | Historical Predecessor | ||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
For the | For the | September 30, | June 30, | March 31, | |||||||||||||||||
period | period | 2013 | 2013 | 2013 | |||||||||||||||||
October 15, | October 1, | ||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||
through | through | ||||||||||||||||||||
December 31, | October 14, | ||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||
Revenues | $ | 40,462 | $ | 6,967 | $ | 46,020 | $ | 42,940 | $ | 41,498 | |||||||||||
Operating income | 6,203 | 1,143 | 7,048 | 6,024 | 5,568 | ||||||||||||||||
Net income (loss) | 4,002 | 445 | 2,709 | (1,232 | ) | (2,074 | ) | ||||||||||||||
Net income (loss) attributable to common shares | 3,154 | N/A | N/A | N/A | N/A | ||||||||||||||||
Net income per share attributable to common shares – basic(1) | 0.11 | N/A | N/A | N/A | N/A | ||||||||||||||||
Net income per share attributable to common shares – diluted(1) | 0.11 | N/A | N/A | N/A | N/A | ||||||||||||||||
-1 | Net income per share attributable to QTS for the period October 15, 2013 through December 31, 2013. | ||||||||||||||||||||
Qualitytech, LP [Member] | |||||||||||||||||||||
Summary of Selected Quarterly Information | The table below reflects the selected quarterly information for the years ended December 31, 2014 and 2013 for the Operating Partnership (in thousands): | ||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||
2014 | |||||||||||||||||||||
Revenues | $ | 59,563 | $ | 57,945 | $ | 51,338 | $ | 48,943 | |||||||||||||
Operating income | 11,682 | 9,913 | 6,266 | 7,413 | |||||||||||||||||
Net income | 5,848 | 4,006 | 3,921 | 5,328 | |||||||||||||||||
2013 | |||||||||||||||||||||
Revenues | $ | 47,429 | $ | 46,020 | $ | 42,940 | $ | 41,498 | |||||||||||||
Operating income | 7,346 | 7,048 | 6,024 | 5,568 | |||||||||||||||||
Net income (loss) | 4,447 | 2,709 | (1,232 | ) | (2,074 | ) | |||||||||||||||
Description_of_Business_Narrat
Description of Business (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 |
Organization And Description Of Business [Line Items] | ||
Common Stock, Shares, Issued | 28,972,774 | 29,408,138 |
Common Stock, Par or Stated Value Per Share | $0.01 | 0.01 |
Equity Method Investment, Ownership Percentage | 79.60% | |
IPO [Member] | ||
Organization And Description Of Business [Line Items] | ||
Common Stock, Shares, Issued | 1,000 | |
Common Class A [Member] | ||
Organization And Description Of Business [Line Items] | ||
Common Stock, Shares, Issued | 14,087,500 | 270,000 |
Common Stock, Par or Stated Value Per Share | $0.01 | |
Proceeds from Issuance of Common Stock | $279 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 23, 2014 |
Summary Of Significant Accounting Policies [Line Items] | ||||
Useful life of property | 40 years | |||
Depreciation expense from operation | $45.40 | $36.70 | $29.80 | |
Real estate cost capitalized excluding interest cost | 10.6 | 8.5 | 6.7 | |
Real estate interest cost capitalized incurred | 6.5 | 4.1 | 2.2 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.88% | |||
Debt Instrument Maturity Year | 2022 | |||
In Place Leases [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Amortization of Leased Asset | 2.2 | 2.6 | ||
Tenant Relationship [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Amortization of Intangible Assets | $1.30 | $1.50 | $0.60 | |
Senior Notes [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.88% | 5.88% | ||
Debt Instrument Maturity Year | 2022 | |||
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 | |||
Minimum [Member] | Land, Buildings and 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) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 29, 2012 | Feb. 08, 2012 | |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Amortization of the deferred financing costs | $496,000 | $2,673,000 | ||||
Write Off Unamortized Debt Issue Costs | 900,000 | 2,200,000 | ||||
Written Off Unamortization Cost Relation To Assets Securitization | 1,300,000 | |||||
Amortization of Deferred Leasing Fees | 6,400,000 | 4,700,000 | 3,400,000 | |||
Deferred income | 7,892,000 | 10,531,000 | 7,892,000 | 6,800,000 | ||
Amortization of deferred revenue | 4,700,000 | 4,700,000 | 4,300,000 | |||
Company recorded equity-based compensation expense net of repurchased awards and forfeits | 4,200,000 | 2,000,000 | 400,000 | |||
Amount of the straight-line rent receivable on the balance sheets included in rents and other receivables | 2,900,000 | 4,000,000 | 2,900,000 | |||
Deferred Costs, Leasing, Net | 11,858,000 | 17,421,000 | 11,858,000 | |||
Leasing Arrangement [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Deferred Costs, Leasing, Net | 3,200,000 | |||||
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Derivative, Notional Amount | 150,000,000 | 150,000,000 | ||||
Unsecured Revolving Credit Facility [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Amortization of the deferred financing costs | 2,700,000 | 2,800,000 | 3,400,000 | |||
Repayment of credit facility | $75,000,000 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Deferred Financing Costs, Net of Accumulated Amortization) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Financing Cost [Line Items] | ||
Deferred financing costs | $18,152 | $9,159 |
Accumulated amortization | -1,683 | -1,867 |
Deferred financing costs, net | $16,469 | $7,292 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Deferred Leasing Costs, Net of Accumulated Amortization) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Leasing cost [Line Items] | ||
Deferred leasing costs | $26,799 | $17,374 |
Accumulated amortization | -9,378 | -5,516 |
Deferred leasing costs, net | $17,421 | $11,858 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies (Summary of Temporary Differences and Carry Forwards Which Give Rise to Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Deferred tax liabilities | |||
Property and equipment | ($5,784) | ($4,905) | ($4,852) |
Other | -1,427 | -873 | -551 |
Gross deferred tax liabilities | -7,211 | -5,778 | -5,403 |
Deferred tax assets | |||
Net operating loss carryforwards | 9,137 | 5,861 | 6,694 |
Deferred revenue and setup charges | 868 | 583 | 467 |
Derivative liability | 0 | 0 | 0 |
Other | 601 | 699 | 113 |
Gross deferred tax assets | 10,606 | 7,143 | 7,274 |
Net deferred tax assets | 3,395 | 1,365 | 1,871 |
Valuation allowance | -3,395 | -1,365 | -1,871 |
Net deferred | $0 | $0 | $0 |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies (Additional Information 2) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Segment | ||
Entity | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Aggregate allowance for doubtful accounts | $3,700,000 | $900,000 |
Capital Lease Obligations | 13,062,000 | 2,538,000 |
Number of Operating Segments | 1 | |
Number of Reportable Segments | 1 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 2,000,000 | 3,400,000 |
Number Of Subsidiaries Taxed As Taxable Reit | 1 | |
Qualitytech, LP [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Capital Lease Obligations | 13,062,000 | 2,538,000 |
Accounts Receivable [Member] | Customer One [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Percentage Of Accounts Receivable | 32.00% | |
Accounts Receivable [Member] | Customer Two [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Percentage Of Accounts Receivable | 18.00% | |
Maximum [Member] | Accounts Receivable [Member] | Five Customers [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Percentage Of Accounts Receivable | 67.00% | |
Maximum [Member] | Rental Revenue [Member] | Customer One [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Concentration Risk, Percentage | 9.00% | |
Maximum [Member] | Rental Revenue [Member] | Other Customers [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Concentration Risk, Percentage | 5.00% | |
Minimum [Member] | Accounts Receivable [Member] | Five Customers [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Percentage Of Accounts Receivable | 5.00% | |
Federal [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Net operating loss carry forwards related to Federal income taxes | 24,100,000 | |
Federal [Member] | Maximum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Operating Loss Carryforwards Expiration Period | 20 years | |
Federal [Member] | Minimum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Operating Loss Carryforwards Expiration Period | 15 years | |
State [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Net operating loss carry forwards related to Federal income taxes | $20,100,000 | |
State [Member] | Maximum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Operating Loss Carryforwards Expiration Period | 20 years | |
State [Member] | Minimum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Operating Loss Carryforwards Expiration Period | 5 years |
Summary_of_Significant_Account9
Summary of Significant Accounting Policies (Financial Instruments Held at Fair Value) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Financial Liabilities: | ||||
Interest rate swap liability | $0 | $453 | ||
Interest Rate Swap [Member] | ||||
Financial Liabilities: | ||||
Interest rate swap liability | 0 | [1] | 453 | [1] |
Fair Value, Inputs, Level 1 [Member] | Interest Rate Swap [Member] | ||||
Financial Liabilities: | ||||
Interest rate swap liability | 0 | [1] | 0 | [1] |
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | ||||
Financial Liabilities: | ||||
Interest rate swap liability | 0 | [1] | 453 | [1] |
Fair Value, Inputs, Level 3 [Member] | Interest Rate Swap [Member] | ||||
Financial Liabilities: | ||||
Interest rate swap liability | $0 | [1] | $0 | [1] |
[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 at December 31, 2013. The fair value measurement of the interest rate swaps have been classified as Level 2. The swaps matured on September 28, 2014, and as such, there were no amounts outstanding on the consolidated balance sheet as of December 31, 2014 related to interest rate swaps. |
Acquisition_of_Real_Estate_Nar
Acquisition of Real Estate (Narrative) (Details) (USD $) | 6 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Jul. 08, 2014 | Jun. 30, 2014 |
acre | sqft | ||
sqft | acre | ||
Chicago Facility [Member] | |||
Business Acquisition [Line Items] | |||
Aggregate costs related to acquisition | $18 | ||
Acres of real estate property | 30 | ||
Area of facility | 400,000 | 317,000 | |
Chicago Facility [Member] | Raised Floor With Twelve Mw Gross Power [Member] | |||
Business Acquisition [Line Items] | |||
Area of facility | 215,000 | 133,000 | |
Capacity of the plant | 37 | 24 | |
Princeton Facility [Member] | |||
Business Acquisition [Line Items] | |||
Aggregate costs related to acquisition | $73.30 | ||
Acres of real estate property | 194 | ||
Area of facility | 560,000 | ||
Lease Period | 10 years | ||
Lease Renewal Period | 15 years | ||
Princeton 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) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Business Acquisition [Line Items] | |
Buildings | 35,574 |
Land | 17,976 |
Acquired Intangibles | 16,114 |
Deferred Costs | 3,335 |
Other | 301 |
Total purchase price | 73,300 |
Building [Member] | |
Business Acquisition [Line Items] | |
Intangible assets, Weighted average useful life | 40 years |
Other [Member] | |
Business Acquisition [Line Items] | |
Intangible assets, Weighted average useful life | 10 years |
Deferred Costs [Member] | |
Business Acquisition [Line Items] | |
Intangible assets, Weighted average useful life | 10 years |
Acquired Intangibles [Member] | |
Business Acquisition [Line Items] | |
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) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Real Estate Properties [Line Items] | ||||
Land | $48,577 | $30,601 | ||
Buildings and improvements | 914,286 | 728,230 | ||
Construction in progress | 214,719 | 146,904 | ||
Total cost | 1,177,582 | 905,735 | ||
Leased Properties [Member] | ||||
Real Estate Properties [Line Items] | ||||
Land | 0 | 0 | ||
Buildings and improvements | 28,170 | 24,573 | ||
Construction in progress | 947 | 0 | ||
Total cost | 29,117 | 24,573 | ||
Jersey City New Jersey [Member] | Leased Properties [Member] | ||||
Real Estate Properties [Line Items] | ||||
Land | 0 | 0 | ||
Buildings and improvements | 27,318 | 23,811 | ||
Construction in progress | 920 | 0 | ||
Total cost | 28,238 | 23,811 | ||
Overland Park Kansas [Member] | Leased Properties [Member] | ||||
Real Estate Properties [Line Items] | ||||
Land | 0 | 0 | ||
Buildings and improvements | 852 | [1] | 762 | [1] |
Construction in progress | 27 | |||
Total cost | 879 | 762 | ||
Owned Properties [Member] | ||||
Real Estate Properties [Line Items] | ||||
Land | 48,577 | 30,601 | ||
Buildings and improvements | 886,116 | 703,657 | ||
Construction in progress | 213,772 | 146,904 | ||
Total cost | 1,148,465 | 881,162 | ||
Owned Properties [Member] | Suwanee, Georgia (Atlanta-Suwanee) [Member] | ||||
Real Estate Properties [Line Items] | ||||
Land | 3,521 | 3,521 | ||
Buildings and improvements | 138,991 | 126,486 | ||
Construction in progress | 6,345 | 3,270 | ||
Total cost | 148,857 | 133,277 | ||
Owned Properties [Member] | Atlanta, Georgia (Atlanta-Metro) [Member] | ||||
Real Estate Properties [Line Items] | ||||
Land | 15,397 | 15,397 | ||
Buildings and improvements | 356,122 | 296,547 | ||
Construction in progress | 22,693 | 32,456 | ||
Total cost | 394,212 | 344,400 | ||
Owned Properties [Member] | Santa Clara California [Member] | ||||
Real Estate Properties [Line Items] | ||||
Land | 0 | [2] | 0 | [2] |
Buildings and improvements | 90,332 | [2] | 86,544 | [2] |
Construction in progress | 650 | [2] | 1,249 | [2] |
Total cost | 90,982 | [2] | 87,793 | [2] |
Owned Properties [Member] | Richmond Virginia [Member] | ||||
Real Estate Properties [Line Items] | ||||
Land | 2,180 | 2,180 | ||
Buildings and improvements | 127,080 | 108,979 | ||
Construction in progress | 71,794 | 67,155 | ||
Total cost | 201,054 | 178,314 | ||
Owned Properties [Member] | Sacramento California [Member] | ||||
Real Estate Properties [Line Items] | ||||
Land | 1,481 | 1,481 | ||
Buildings and improvements | 60,094 | 52,841 | ||
Construction in progress | 278 | 4,273 | ||
Total cost | 61,853 | 58,595 | ||
Owned Properties [Member] | Princeton New Jersey [Member] | ||||
Real Estate Properties [Line Items] | ||||
Land | 17,976 | |||
Buildings and improvements | 35,951 | |||
Construction in progress | 90 | |||
Total cost | 54,017 | |||
Owned Properties [Member] | Dallas Fort Worth Texas [Member] | ||||
Real Estate Properties [Line Items] | ||||
Land | 5,808 | 5,808 | ||
Buildings and improvements | 44,053 | 0 | ||
Construction in progress | 89,982 | 38,501 | ||
Total cost | 139,843 | 44,309 | ||
Owned Properties [Member] | Chicago Illinois [Member] | ||||
Real Estate Properties [Line Items] | ||||
Land | 0 | |||
Buildings and improvements | 0 | |||
Construction in progress | 21,786 | |||
Total cost | 21,786 | |||
Owned Properties [Member] | Miami Florida [Member] | ||||
Real Estate Properties [Line Items] | ||||
Land | 1,777 | 1,777 | ||
Buildings and improvements | 28,786 | 27,553 | ||
Construction in progress | 129 | 0 | ||
Total cost | 30,692 | 29,330 | ||
Owned Properties [Member] | Lenexa Kansas [Member] | ||||
Real Estate Properties [Line Items] | ||||
Land | 437 | 437 | ||
Buildings and improvements | 3,298 | 3,298 | ||
Construction in progress | 25 | 0 | ||
Total cost | 3,760 | 3,735 | ||
Owned Properties [Member] | Wichita Kansas [Member] | ||||
Real Estate Properties [Line Items] | ||||
Land | 0 | 0 | ||
Buildings and improvements | 1,409 | 1,409 | ||
Construction in progress | 0 | 0 | ||
Total cost | $1,409 | $1,409 | ||
[1] | This does not include the portion of the business that is used for QTS office space or other real estate not used by customers. | |||
[2] | Owned facility subject to long-term ground sublease. |
Credit_Facilities_Senior_Notes2
Credit Facilities, Senior Notes and Mortgage Notes Payable (Unsecured Credit Facility Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | 1-May-13 | Dec. 17, 2014 | Jul. 31, 2014 |
Debt Instrument [Line Items] | ||||||
Credit facility maximum borrowing capacity | 100 | $100 | ||||
Maximum the credit facility may be increased up until | 850 | 850 | ||||
Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility maximum borrowing capacity | 225 | |||||
Unsecured credit facility term | 5 years | |||||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility maximum borrowing capacity | 350 | 550 | ||||
Unsecured credit facility term | 4 years | |||||
Line of credit facility accordion feature | 100 | |||||
Debt extension period | 1 year | |||||
Credit facility availability | 550 | 550 | ||||
Maximum percentage of unencumbered asset pool capitalized value | 60.00% | 60.00% | ||||
Unencumbered asset pool debt service ratio | 1.70% | 1.70% | ||||
Unencumbered asset pool debt yield limit | 14.00% | 14.00% | ||||
Letter of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Letter of credit outstanding | 2.5 | 2.5 | ||||
Maximum [Member] | Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility maximum borrowing capacity | 150 | |||||
Maximum [Member] | Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument variable interest rate percentage | 2.20% | |||||
Maximum [Member] | Term Loan [Member] | Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument variable interest rate percentage | 1.20% | |||||
Maximum [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument variable interest rate percentage | 2.25% | |||||
Maximum [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument variable interest rate percentage | 1.25% | |||||
Minimum [Member] | Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility maximum borrowing capacity | 75 | |||||
Minimum [Member] | Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument variable interest rate percentage | 1.65% | |||||
Minimum [Member] | Term Loan [Member] | Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument variable interest rate percentage | 0.65% | |||||
Minimum [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument variable interest rate percentage | 1.70% | |||||
Minimum [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument variable interest rate percentage | 0.70% | |||||
Unsecured Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility agreement date | 1-May-13 | |||||
Credit facility maximum borrowing capacity | 30 | 30 | 575 | 650 | ||
Unsecured credit facility term | 5 years | |||||
Letter of credit outstanding | 239.8 | 239.8 | ||||
Credit facility covenant terms | (i) the outstanding principal balance of the loans and letter of credit liabilities cannot exceed the unencumbered asset pool availability (as defined in the credit agreement), (ii) a maximum leverage ratio of total indebtedness to gross asset value not in excess of 60%, (iii) a minimum fixed charge coverage ratio (defined as the ratio of consolidated EBITDA, subject to certain adjustments, to consolidated fixed charges) for the prior two most recently-ended calendar quarters of not less than 1.70 to 1.00, (iv) tangible net worth of at least $645 million plus 85% of the sum of net equity offering proceeds and the value of interests in the Operating Partnership issued upon contribution of assets to the Operating Partnership or its subsidiaries, (v) unhedged variable rate debt not greater than 35% of gross asset value and (vi) a maximum distribution payout ratio of the greater of (a) 95% of our “funds from operations” (as defined in the agreement) and (b) the amount required for QTS to qualify as a REIT under the Code. | |||||
Fixed charge coverage ratio | 1.70% | 1.70% | ||||
Credit facility covenant minimum tangible net worth | 645 | 645 | ||||
Credit facility covenant, maximum distribution payout ratio of funds from operations | 95.00% | 95.00% | ||||
Percentage change in maximum leverage ratio required for incremental decrease in interest rate | 5.00% | 5.00% | ||||
Debt instrument variable interest rate percentage | 1.84% | |||||
Derivative, Variable Interest Rate | 35.00% | 35.00% | ||||
Unsecured Credit Facility [Member] | Operating Partnership [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility covenant, percentage ownership requirements in addition to minimum tangible net worth | 85.00% | 85.00% | ||||
Unsecured Credit Facility [Member] | Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Letter of credit outstanding | 100 | 100 | 100 | |||
Unsecured Credit Facility [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Letter of credit outstanding | 139.8 | $139.80 | ||||
Unsecured Credit Facility [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Leverage ratio | 60.00% | 60.00% |
Credit_Facilities_Senior_Notes3
Credit Facilities, Senior Notes and Mortgage Notes Payable (Senior Notes) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Jul. 23, 2014 |
Debt Instrument [Line Items] | ||
Debt Instrument Maturity Year | 2022 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.88% | |
Percentage Of Fair Value | 99.21% | |
Unsecured Long-term Debt, Noncurrent | $75 | |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Maturity Year | 2022 | |
Debt Instrument, Face Amount | $300 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.88% | 5.88% |
Credit_Facilities_Senior_Notes4
Credit Facilities, Senior Notes and Mortgage Notes Payable (Richmond Credit Facility Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Debt Instrument [Line Items] | |
Line of Credit Facility, Interest Rate at Period End | 2.27% |
Line of Credit Facility, Expiration Date | 30-Jun-19 |
Richmond Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Current Borrowing Capacity | 120 |
Richmond Credit Facility [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Increased Borrowing Capacity After Considering Accordion Feature | 200 |
Richmond Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Debt Instrument [Line Items] | |
Leverage ratio | 2.85% |
Richmond Credit Facility [Member] | Maximum [Member] | Base Rate [Member] | |
Debt Instrument [Line Items] | |
Leverage ratio | 1.85% |
Richmond Credit Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Debt Instrument [Line Items] | |
Leverage ratio | 2.10% |
Richmond Credit Facility [Member] | Minimum [Member] | Base Rate [Member] | |
Debt Instrument [Line Items] | |
Leverage ratio | 1.10% |
Credit_Facilities_Senior_Notes5
Credit Facilities, Senior Notes and Mortgage Notes Payable (Atlanta-Metro Equipment Loan Narrative) (Details) (USD $) | 1 Months Ended | ||
In Millions, unless otherwise specified | Apr. 30, 2010 | Dec. 31, 2014 | Apr. 09, 2010 |
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.88% | ||
Atlanta Metro Equipment Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Maximum Borrowing Capacity | $25 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.85% | ||
Debt Instrument Amortization Period | 10 years | ||
Debt Instrument, Maturity Date | 1-Jun-20 |
Credit_Facilities_Senior_Notes6
Credit Facilities, Senior Notes and Mortgage Notes Payable (Outstanding Debt Excluding Capital Leases) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Outstanding debt | $624,167 | $345,339 |
Unsecured Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding debt | 239,838 | 256,500 |
Senior Notes Net Of Discount [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding debt | 297,729 | 0 |
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 | $16,600 | $18,839 |
Credit_Facilities_Senior_Notes7
Credit Facilities, Senior Notes and Mortgage Notes Payable (Annual Remaining Principal Payment) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Debt Instrument [Line Items] | |
2015 | $2,397 |
2016 | 2,567 |
2017 | 2,748 |
2018 | 142,781 |
2019 | 173,150 |
Thereafter | 302,795 |
Total | $626,438 |
Interest_Rate_Derivative_Instr1
Interest Rate Derivative Instruments (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 29, 2012 | Feb. 08, 2012 | |
Derivative [Line Items] | ||||||
Unrealized gains or losses on cash flow hedge derivative effective portion | $0 | $300,000 | ||||
Interest expense related to payments on interest rate swaps | -2,049,000 | -15,308,000 | ||||
Interest Rate Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Interest expense related to payments on interest rate swaps | 500,000 | 500,000 | 500,000 | |||
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative instruments, notional amount | 150,000,000 | 150,000,000 | ||||
Derivative, Inception Date | 8-Feb-12 | |||||
Derivative, Maturity Date | 28-Sep-14 | |||||
Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Derivative [Line Items] | ||||||
Interest rate swap liability recorded at fair value | $500,000 | $0 | $500,000 |
Partners_Capital_Equity_and_In2
Partners' Capital, Equity and Incentive Compensation Plans (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | |||
Share data in Millions, except Per Share data, unless otherwise specified | Oct. 07, 2014 | Jul. 08, 2014 | Apr. 08, 2014 | Jan. 07, 2014 | Dec. 31, 2014 | Jan. 07, 2015 | Feb. 23, 2015 | Jun. 30, 2014 |
Partners Capital And Distributions [Line Items] | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $10,500,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 4 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | 31,600,000 | |||||||
Aggregate Cash Distributions Paid | 10,500,000 | 10,700,000 | 10,700,000 | 9,000,000 | ||||
Common Stock, Dividends, Per Share, Cash Paid | $0.24 | |||||||
Distribution Made to Limited Partner, Distributions Paid, Per Unit | $0.29 | $0.24 | ||||||
Dividends Payable, Date to be Paid | 7-Oct-14 | 8-Jul-14 | 8-Apr-14 | |||||
Subsequent Event [Member] | ||||||||
Partners Capital And Distributions [Line Items] | ||||||||
Aggregate Cash Distributions Paid | 10,700,000 | |||||||
Common Stock, Dividends, Per Share, Cash Paid | $0.29 | |||||||
Dividends Payable, Date to be Paid | 7-Jan-15 | 7-Apr-15 | ||||||
Dividends Payable, Amount Per Share | $0.29 | $0.32 | ||||||
Restricted Class A Common Stock [Member] | ||||||||
Partners Capital And Distributions [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 0.2 | |||||||
Options to purchase Class A common stock [] [Member] | ||||||||
Partners Capital And Distributions [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 0.4 | |||||||
Two Thousand Thirteen Equity Incentive Plan [Member] | ||||||||
Partners Capital And Distributions [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1.75 | |||||||
Common Class B [Member] | ||||||||
Partners Capital And Distributions [Line Items] | ||||||||
Votes Per Share Of Class B Common Stock | 50 | |||||||
Common Class B [Member] | Chief Executive Officer [Member] | ||||||||
Partners Capital And Distributions [Line Items] | ||||||||
Operating Partnership Units Exchange Percentage | 2.00% | |||||||
Class O Units [Member] | ||||||||
Partners Capital And Distributions [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 0.7 | |||||||
Aggregate Cash Distributions Paid | $200,000 | |||||||
Class RS Units [Member] | ||||||||
Partners Capital And Distributions [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 0.1 |
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) (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
2013 Equity Incentive Plan [Member] | Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Beginning balance, Weighted average exercise price units | $0 | |||||
Weighted average exercise price, Granted | $0 | |||||
Weighted average exercise price, Exercised | $0 | |||||
Weighted average exercise price, Released from restriction | $0 | [1] | $0 | [1] | $0 | [1] |
Weighted average exercise price, Cancelled/Expired | $21 | [2] | $0 | $0 | ||
Beginning balance, Weighted average fair value | $21 | $0 | $0 | |||
Weighted average fair value, Granted | $4.96 | $3.50 | ||||
Weighted average fair value, Exercised | $3.52 | [3] | $0 | $0 | ||
Weighted average fair value, Released from restriction | $0 | [1] | $0 | [1] | $0 | [1] |
Weighted average fair value, Cancelled/Expired | $3.52 | [1],[2] | $3.52 | $0 | ||
Ending balance, Weighted average fair value | $22.87 | $21 | $0 | |||
Weighted average price, Granted | $25.59 | $21 | $0 | |||
Weighted average price, Exercised | $21 | [3] | $0 | |||
Ending balance, Weighted average price | $4.10 | $3.50 | $0 | |||
Beginning balance, Options Outstanding | 367,910 | 0 | 0 | |||
Options, Granted | 238,039 | 370,410 | 0 | |||
Options, Exercised | -3,000 | [3] | 0 | 0 | ||
Options, Released from restriction | 0 | [1] | 0 | [1] | 0 | [1] |
Options, Cancelled/Expired | -18,000 | [2] | -2,500 | 0 | ||
Ending balance, Options Outstanding | 584,949 | 367,910 | 0 | |||
2013 Equity Incentive Plan [Member] | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Beginning balance, Weighted average exercise price units | $0 | |||||
Weighted average exercise price, Granted | $0 | |||||
Weighted average exercise price, Exercised | $0 | |||||
Weighted average exercise price, Released from restriction | $0 | [1] | $0 | [1] | $0 | [1] |
Weighted average exercise price, Cancelled/Expired | $21 | [2] | $0 | $0 | ||
Beginning balance, Weighted average fair value | $21 | $0 | ||||
Ending balance, Weighted average fair value | $29.13 | $21 | $0 | |||
Weighted average price, Granted | $32.66 | $21 | ||||
Weighted average price, Exercised | $21 | [3] | $0 | |||
Beginning balance, Options Outstanding | 108,629 | 0 | 0 | |||
Options, Granted | 172,102 | 108,629 | 0 | |||
Options, Exercised | -25,786 | [3] | 0 | 0 | ||
Options, Released from restriction | 0 | [1] | 0 | [1] | 0 | [1] |
Options, Cancelled/Expired | -8,160 | [2] | 0 | 0 | ||
Ending balance, Options Outstanding | 246,785 | 108,629 | 0 | |||
Class O [Member] | 2010 Equity Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Beginning balance, Weighted average exercise price units | $20 | |||||
Weighted average exercise price, Granted | $25 | |||||
Weighted average exercise price, Exercised | $0 | |||||
Weighted average exercise price, Released from restriction | $0 | [1] | $0 | [1] | $0 | [1] |
Weighted average exercise price, Cancelled/Expired | $26.70 | [2] | $0 | $0 | ||
Beginning balance, Weighted average fair value | $23.44 | $23.09 | $4.38 | |||
Weighted average fair value, Granted | $0 | $10.62 | ||||
Weighted average fair value, Exercised | $4.75 | [3] | $0 | $0 | ||
Weighted average fair value, Released from restriction | $0 | [1] | $0 | [1] | $0 | [1] |
Weighted average fair value, Cancelled/Expired | $6.05 | [2] | $5.31 | $4.41 | ||
Ending balance, Weighted average fair value | $23.49 | $23.44 | $23.09 | |||
Weighted average price, Granted | $0 | $25 | $1.99 | |||
Weighted average price, Exercised | $20.71 | [3] | $0 | |||
Ending balance, Weighted average price | $3.75 | $3.84 | $2.84 | |||
Beginning balance, Options Outstanding | 1,622,747 | 1,471,943 | 699,368 | |||
Options, Granted | 0 | 224,244 | 908,925 | |||
Options, Exercised | -15,750 | [3] | 0 | 0 | ||
Options, Released from restriction | 0 | [1] | 0 | [1] | 0 | [1] |
Options, Cancelled/Expired | -88,280 | [2] | -73,440 | -136,350 | ||
Ending balance, Options Outstanding | 1,518,717 | 1,622,747 | 1,471,943 | |||
Class RS [Member] | 2010 Equity Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Beginning balance, Weighted average exercise price units | $0 | |||||
Weighted average exercise price, Granted | $0 | |||||
Weighted average exercise price, Exercised | $0 | |||||
Weighted average exercise price, Released from restriction | $0 | [1] | $0 | [1] | $0 | [1] |
Weighted average exercise price, Cancelled/Expired | $0 | [2] | $0 | $0 | ||
Beginning balance, Weighted average fair value | $21.86 | $0 | ||||
Ending balance, Weighted average fair value | $23.49 | $21.86 | $0 | |||
Weighted average price, Granted | $0 | $0 | ||||
Weighted average price, Exercised | $0 | [3] | $0 | |||
Beginning balance, Options Outstanding | 173,750 | 178,750 | 50,000 | |||
Options, Granted | 0 | 0 | 150,000 | |||
Options, Exercised | 0 | [3] | 0 | 0 | ||
Options, Released from restriction | -99,125 | [1] | -5,000 | [1] | -21,250 | [1] |
Options, Cancelled/Expired | 0 | [2] | 0 | 0 | ||
Ending balance, Options Outstanding | 74,625 | 173,750 | 178,750 | |||
[1] | This represents Class RS units that upon vesting have converted to Operating Partnership units. | |||||
[2] | Includes 8,160 of restricted Class A common stock surrendered by certain employees to satisfy their statutory minimum federal and state tax obligations associated with the vesting of restricted common stock. | |||||
[3] | This represents the Class A common stock that has been released from restriction and which was not surrendered by the holder to satisfy their statutory minimum federal and state tax obligations associated with the vesting of restricted common stock. |
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) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock granted | $21 | $0 | |
Fair value of options granted | $0 | ||
Expected term (years) | 4 years | ||
Expected volatility | 33.00% | 55.00% | |
Expected dividend yield | 5.50% | 0.00% | |
Expected risk-free interest rates | 0.17% | ||
Class O [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock granted | 0 | ||
Class RS [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock granted | 0 | $0 | $7.15 |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock granted | 35.51 | ||
Fair value of options granted | 5.98 | $3.52 | |
Expected term (years) | 6 years 1 month 6 days | 7 years | |
Expected volatility | 40.00% | ||
Expected dividend yield | 4.55% | ||
Expected risk-free interest rates | 1.90% | 1.80% | |
Maximum [Member] | Class O [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock granted | $10.92 | $2.32 | |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock granted | 25.51 | ||
Fair value of options granted | 4.94 | $3.45 | |
Expected term (years) | 5 years 6 months | 5 years 6 months | |
Expected volatility | 32.00% | ||
Expected dividend yield | 4.02% | ||
Expected risk-free interest rates | 1.70% | 1.40% | |
Minimum [Member] | Class O [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock granted | $10.26 | $1.79 |
Partners_Capital_Equity_and_In5
Partners' Capital, Equity and Incentive Compensation Plans (Summary of Information About Awards Outstanding) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Operating Partnership Awards Outstanding [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards Outstanding | 1,593,342 |
Operating Partnership Awards Outstanding [Member] | Class O Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards Outstanding | 1,518,717 |
Remaining term of awards | 1 year |
Lower limit of exercise price | $20 |
Upper limit of exercise price | $25 |
Operating Partnership Awards Outstanding [Member] | Class Rs Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards Outstanding | 74,625 |
Remaining term of awards | 2 years |
Lower limit of exercise price | $0 |
QTS Realty Trust, Inc. Awards Outstanding [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards Outstanding | 831,734 |
QTS Realty Trust, Inc. Awards Outstanding [Member] | Options to purchase Class A common stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards Outstanding | 584,949 |
Remaining term of awards | 2 years |
Lower limit of exercise price | $21 |
Upper limit of exercise price | $28.82 |
QTS Realty Trust, Inc. Awards Outstanding [Member] | Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards Outstanding | 246,785 |
Remaining term of awards | 3 years |
Lower limit of exercise price | $0 |
Related_Party_Transactions_Sum
Related Party Transactions (Summary of Related Party Transactions) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | |||
Tax, utility, insurance and other reimbursement | $692 | $336 | $234 |
Rent expense | 1,026 | 977 | 572 |
Capital assets acquired | 266 | 625 | 568 |
Total | $1,984 | $1,938 | $1,374 |
Employee_Benefit_Plan_Narrativ
Employee Benefit Plan (Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer Contribution on employee benefit plan | $0.60 | $0.30 | $0.30 | |
First Four Percent Of Employee Pre Tax Contribution [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contribution rate as a percentage of employee contribution | 25.00% | |||
Percentage contribution from employees | 4.00% | |||
Second Two Percent Of Employee Pre Tax Contribution [Member] | Subsequent Event [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contribution rate as a percentage of employee contribution | 50.00% | |||
Second Two Percent Of Employee Pre Tax Contribution [Member] | Subsequent Event [Member] | Minimum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage contribution from employees | 2.00% | |||
Second Two Percent Of Employee Pre Tax Contribution [Member] | Subsequent Event [Member] | Maximum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage contribution from employees | 6.00% |
Noncontrolling_Interest_Narrat
Noncontrolling Interest (Narrative) (Details) | 1 Months Ended | |||
Nov. 30, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
Noncontrolling Interest [Line Items] | ||||
Quality Tech LP ownership percentage in operating partnership | 20.40% | 21.20% | ||
Common Stock, Shares, Issued | 29,408,138 | 28,972,774 | ||
Common Class A [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Common Stock, Shares, Issued | 270,000 | 14,087,500 | ||
Subsequent Event [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Stock conversion ratio | 1 |
Earnings_per_share_of_QTS_Real2
Earnings per share of QTS Realty Trust, Inc. (Summary of Basic and Diluted Earnings per Share) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
In Thousands, except Share data, unless otherwise specified | Oct. 14, 2013 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | |||
Earnings per share [Line Items] | ||||||||||
Net income available to common stockholders | $0 | $4,627 | $3,157 | $3,090 | $4,198 | $3,154 | $15,072 | |||
Weighted average shares outstanding - basic | 28,972,774 | 29,054,576 | ||||||||
Net income per share - basic | $0 | [1] | $0.16 | $0.11 | $0.11 | $0.14 | $0.11 | [1] | $0.52 | |
Net income | $445 | $5,848 | $4,006 | $3,921 | $5,328 | $4,002 | $19,103 | |||
Weighted average shares outstanding - diluted | 36,794,215 | [2] | 37,133,584 | [2] | ||||||
Net income per share - diluted | $0 | [1] | $0.16 | $0.11 | $0.11 | $0.14 | $0.11 | [1] | $0.51 | |
[1] | Net income per share attributable to QTS for the period October 15, 2013 through December 31, 2013. | |||||||||
[2] | Includes 7,770 Class A and Class RS units, 195 “in the money†value of Class O units on an “as if†converted basis and 114 “in the money†value options to purchase shares of Class A common stock on an “as if†converted basis as of the year ended December 31, 2014. As of the year ended December 31, 2013, this amount includes 7,797 Class A and Class RS units and 24 “in the money†value of Class O units on as “as if†converted basis. |
Earnings_per_share_of_QTS_Real3
Earnings per share of QTS Realty Trust, Inc. (Summary of Basic and Diluted Earnings per Share Footnote) (Details) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Earnings per share [Line Items] | |||||
Weighted Average Number of Shares Outstanding, Diluted | 36,794,215 | [1] | 37,133,584 | [1] | |
Class O [Member] | |||||
Earnings per share [Line Items] | |||||
Weighted Average Number of Shares Outstanding, Diluted | 195 | 24 | |||
Common Class A [Member] | |||||
Earnings per share [Line Items] | |||||
Weighted Average Number of Shares Outstanding, Diluted | 114 | ||||
Common Class A [Member] | Class RS [Member] | |||||
Earnings per share [Line Items] | |||||
Weighted Average Number of Shares Outstanding, Diluted | 7,770 | 7,797 | |||
[1] | Includes 7,770 Class A and Class RS units, 195 “in the money†value of Class O units on an “as if†converted basis and 114 “in the money†value options to purchase shares of Class A common stock on an “as if†converted basis as of the year ended December 31, 2014. As of the year ended December 31, 2013, this amount includes 7,797 Class A and Class RS units and 24 “in the money†value of Class O units on as “as if†converted basis. |
Operating_Leases_as_Lessee_Nar
Operating Leases, as Lessee (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Leased Assets [Line Items] | |||
Rent expense under operating leases | $5,900,000 | $5,800,000 | $6,500,000 |
Capitalized Rent | $0 | $0 | $0 |
Santa Clara [Member] | |||
Operating Leased Assets [Line Items] | |||
Sublease expiration period | 2052 years |
Operating_Leases_as_Lessee_Fut
Operating Leases, as Lessee (Future Non-cancellable Minimum Rental Payments Required Under Operating Leases and/or Licenses) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | |
2015 | $5,458 |
2016 | 5,533 |
2017 | 5,606 |
2018 | 5,606 |
2019 | 4,591 |
Thereafter | 64,045 |
Total | $90,839 |
Customer_Leases_as_Lessor_Futu
Customer Leases, as Lessor (Future Minimum Lease Payments to be Received Under Non-Cancelable Operating Customer Leases) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Customer Leases, as Lessor [Line Items] | |
2015 | $193,310 |
2016 | 171,854 |
2017 | 137,121 |
2018 | 106,373 |
2019 | 68,669 |
Thereafter | 215,088 |
Total | $892,415 |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Narrative) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Atlanta Metro Equipment Loan [Member] | |
Fair Value Of Financial Instruments [Line Items] | |
Debt Instrument, Fair Value Disclosure | $16.10 |
Senior Notes [Member] | |
Fair Value Of Financial Instruments [Line Items] | |
Debt Instrument, Fair Value Disclosure | $294.80 |
Quarterly_Financial_Informatio2
Quarterly Financial Information (Summary of Selected Quarterly Information) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
In Thousands, except Per Share data, unless otherwise specified | Oct. 14, 2013 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Oct. 14, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | |||||
Effect of Fourth Quarter Events [Line Items] | |||||||||||||||||||
Revenues | $6,967 | $59,563 | $57,945 | $51,338 | $48,943 | $40,462 | $217,789 | ||||||||||||
Operating income | 1,143 | 11,682 | 9,913 | 6,266 | 7,413 | 6,203 | 35,274 | ||||||||||||
Net income | 445 | 5,848 | 4,006 | 3,921 | 5,328 | 4,002 | 19,103 | ||||||||||||
Net income attributable to common shares | 0 | 4,627 | 3,157 | 3,090 | 4,198 | 3,154 | 15,072 | ||||||||||||
Net income per share attributable to common shares - basic | $0 | [1] | $0.16 | $0.11 | $0.11 | $0.14 | $0.11 | [1] | $0.52 | ||||||||||
Net income per share attributable to common shares - diluted | $0 | [1] | $0.16 | $0.11 | $0.11 | $0.14 | $0.11 | [1] | $0.51 | ||||||||||
Historical Predecessor [Member] | |||||||||||||||||||
Effect of Fourth Quarter Events [Line Items] | |||||||||||||||||||
Revenues | 46,020 | 42,940 | 41,498 | 137,425 | 145,759 | ||||||||||||||
Operating income | 7,048 | 6,024 | 5,568 | 19,783 | 15,515 | ||||||||||||||
Net income | 2,709 | -1,232 | -2,074 | -152 | -9,767 | ||||||||||||||
Net income attributable to common shares | 0 | 0 | 0 | ||||||||||||||||
Net income per share attributable to common shares - basic | $0 | [1] | $0 | [1] | $0 | [1] | $0 | $0 | |||||||||||
Net income per share attributable to common shares - diluted | $0 | [1] | $0 | [1] | $0 | [1] | $0 | $0 | |||||||||||
Parent Company [Member] | |||||||||||||||||||
Effect of Fourth Quarter Events [Line Items] | |||||||||||||||||||
Revenues | 59,563 | 57,945 | 51,338 | 48,943 | 46,020 | 42,940 | 41,498 | 47,429 | |||||||||||
Operating income | 11,682 | 9,913 | 6,266 | 7,413 | 7,048 | 6,024 | 5,568 | 7,346 | |||||||||||
Net income | $5,848 | $4,006 | $3,921 | $5,328 | $19,103 | $2,709 | ($1,232) | ($2,074) | ($9,767) | $4,447 | $3,850 | ||||||||
[1] | Net income per share attributable to QTS for the period October 15, 2013 through December 31, 2013. |
Subsequent_Events_Narrative_De
Subsequent Events (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||
Oct. 07, 2014 | Jul. 08, 2014 | Apr. 08, 2014 | Jan. 07, 2014 | Dec. 31, 2013 | Jan. 07, 2015 | Feb. 23, 2015 | Dec. 31, 2014 | Mar. 02, 2015 | |
Subsequent Event [Line Items] | |||||||||
Dividends Payable, Date to be Paid | 7-Oct-14 | 8-Jul-14 | 8-Apr-14 | ||||||
Common Stock, Dividends, Per Share, Cash Paid | $0.24 | ||||||||
Common Class A [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Proceeds from Issuance of Common Stock | $279,000,000 | ||||||||
Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends Payable, Date to be Paid | 7-Jan-15 | 7-Apr-15 | |||||||
Common Stock, Dividends, Per Share, Cash Paid | $0.29 | ||||||||
Dividends Payable, Date of Record | 20-Mar-15 | 19-Dec-14 | |||||||
Dividends Payable, Date Declared | 23-Feb-15 | ||||||||
Dividends Payable, Amount Per Share | $0.29 | $0.32 | |||||||
Subsequent Event [Member] | Common Class A [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Shares Issued, Price Per Share | $34.75 | ||||||||
Stock Issued During Period, Value, Stock Options Exercised | 1,402,500 | ||||||||
Proceeds from Issuance of Common Stock | $166,000,000 | ||||||||
Stock Issued During Period, Shares, Other | 10,752,500 | ||||||||
Subsequent Event [Member] | GA QTS Interholdco LLC [Member] | Common Class A [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Sale of Stock, Number of Shares Issued in Transaction | 5,752,500 | ||||||||
Stock Issued During Period, Shares, Other | 5,000,000 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $945 | $456 | $321 |
Charge to expenses | 600 | 545 | -192 |
Deductions (write-offs) | 2,203 | -56 | 327 |
Balance at end of period | 3,748 | 945 | 456 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 1,365 | 1,871 | 144 |
Charge to expenses | 0 | 0 | 0 |
Deductions (write-offs) | 2,030 | -506 | 1,727 |
Balance at end of period | $3,395 | $1,365 | $1,871 |
Schedule_III_Real_Estate_Inves1
Schedule III - Real Estate Investments (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial costs of land | $37,676 | ||||
Initial costs of buildings and improvements | 199,465 | ||||
Initial costs of construction in progress | 17,764 | ||||
Costs capitalized subsequent to acquisition, Land | 10,901 | ||||
Costs capitalized subsequent to acquisition, Buildings and improvements | 714,821 | ||||
Costs capitalized subsequent to acquisition, Construction in progress | 196,955 | ||||
Gross carrying amount, Land | 48,577 | ||||
Gross carrying amount, Buildings and improvements | 914,286 | ||||
Gross carrying amount, Construction in progress | 214,719 | ||||
Accumulated depreciation and amortization | -180,167 | -137,725 | -102,900 | -74,536 | |
Owned Properties [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial costs of land | 37,676 | ||||
Initial costs of buildings and improvements | 197,480 | ||||
Initial costs of construction in progress | 17,764 | ||||
Costs capitalized subsequent to acquisition, Land | 10,901 | ||||
Costs capitalized subsequent to acquisition, Buildings and improvements | 688,636 | ||||
Costs capitalized subsequent to acquisition, Construction in progress | 196,008 | ||||
Gross carrying amount, Land | 48,577 | ||||
Gross carrying amount, Buildings and improvements | 886,116 | ||||
Gross carrying amount, Construction in progress | 213,772 | ||||
Accumulated depreciation and amortization | -168,783 | ||||
Owned Properties [Member] | Suwanee Georgia [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial costs of land | 1,395 | ||||
Initial costs of buildings and improvements | 29,802 | ||||
Initial costs of construction in progress | 0 | ||||
Costs capitalized subsequent to acquisition, Land | 2,126 | ||||
Costs capitalized subsequent to acquisition, Buildings and improvements | 109,189 | ||||
Costs capitalized subsequent to acquisition, Construction in progress | 6,345 | ||||
Gross carrying amount, Land | 3,521 | ||||
Gross carrying amount, Buildings and improvements | 138,991 | ||||
Gross carrying amount, Construction in progress | 6,345 | ||||
Accumulated depreciation and amortization | -41,761 | ||||
Date of acquisition | 1-Sep-05 | ||||
Owned Properties [Member] | Atlanta Georgia [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial costs of land | 12,647 | ||||
Initial costs of buildings and improvements | 35,473 | ||||
Initial costs of construction in progress | 0 | ||||
Costs capitalized subsequent to acquisition, Land | 2,750 | ||||
Costs capitalized subsequent to acquisition, Buildings and improvements | 320,649 | ||||
Costs capitalized subsequent to acquisition, Construction in progress | 22,693 | ||||
Gross carrying amount, Land | 15,397 | ||||
Gross carrying amount, Buildings and improvements | 356,122 | ||||
Gross carrying amount, Construction in progress | 22,693 | ||||
Accumulated depreciation and amortization | -76,031 | ||||
Date of acquisition | 3-Oct-06 | ||||
Owned Properties [Member] | Santa Clara California [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial costs of land | 0 | [1] | |||
Initial costs of buildings and improvements | 15,838 | [1] | |||
Initial costs of construction in progress | 0 | [1] | |||
Costs capitalized subsequent to acquisition, Land | 0 | [1] | |||
Costs capitalized subsequent to acquisition, Buildings and improvements | 74,494 | [1] | |||
Costs capitalized subsequent to acquisition, Construction in progress | 650 | [1] | |||
Gross carrying amount, Land | 0 | [1] | |||
Gross carrying amount, Buildings and improvements | 90,332 | [1] | |||
Gross carrying amount, Construction in progress | 650 | [1] | |||
Accumulated depreciation and amortization | -23,672 | [1] | |||
Date of acquisition | 1-Nov-07 | [1] | |||
Owned Properties [Member] | Richmond Virginia [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial costs of land | 2,000 | ||||
Initial costs of buildings and improvements | 11,200 | ||||
Initial costs of construction in progress | 0 | ||||
Costs capitalized subsequent to acquisition, Land | 180 | ||||
Costs capitalized subsequent to acquisition, Buildings and improvements | 115,880 | ||||
Costs capitalized subsequent to acquisition, Construction in progress | 71,794 | ||||
Gross carrying amount, Land | 2,180 | ||||
Gross carrying amount, Buildings and improvements | 127,080 | ||||
Gross carrying amount, Construction in progress | 71,794 | ||||
Accumulated depreciation and amortization | -15,589 | ||||
Date of acquisition | 20-Mar-10 | ||||
Owned Properties [Member] | Sacramento California [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial costs of land | 1,481 | ||||
Initial costs of buildings and improvements | 52,753 | ||||
Initial costs of construction in progress | 0 | ||||
Costs capitalized subsequent to acquisition, Land | 0 | ||||
Costs capitalized subsequent to acquisition, Buildings and improvements | 7,341 | ||||
Costs capitalized subsequent to acquisition, Construction in progress | 278 | ||||
Gross carrying amount, Land | 1,481 | ||||
Gross carrying amount, Buildings and improvements | 60,094 | ||||
Gross carrying amount, Construction in progress | 278 | ||||
Accumulated depreciation and amortization | -2,899 | ||||
Date of acquisition | 21-Dec-12 | ||||
Owned Properties [Member] | Princeton New Jersey [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial costs of land | 17,976 | ||||
Initial costs of buildings and improvements | 35,865 | ||||
Initial costs of construction in progress | 0 | ||||
Costs capitalized subsequent to acquisition, Land | 0 | ||||
Costs capitalized subsequent to acquisition, Buildings and improvements | 86 | ||||
Costs capitalized subsequent to acquisition, Construction in progress | 90 | ||||
Gross carrying amount, Land | 17,976 | ||||
Gross carrying amount, Buildings and improvements | 35,951 | ||||
Gross carrying amount, Construction in progress | 90 | ||||
Accumulated depreciation and amortization | -465 | ||||
Date of acquisition | 30-Jun-14 | ||||
Owned Properties [Member] | Dallas Texas [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial costs of land | 0 | ||||
Initial costs of buildings and improvements | 5,808 | ||||
Initial costs of construction in progress | 0 | ||||
Costs capitalized subsequent to acquisition, Land | 5,808 | ||||
Costs capitalized subsequent to acquisition, Buildings and improvements | 38,245 | ||||
Costs capitalized subsequent to acquisition, Construction in progress | 89,982 | ||||
Gross carrying amount, Land | 5,808 | ||||
Gross carrying amount, Buildings and improvements | 44,053 | ||||
Gross carrying amount, Construction in progress | 89,982 | ||||
Accumulated depreciation and amortization | -994 | ||||
Date of acquisition | 8-Feb-13 | ||||
Owned Properties [Member] | Chicago Illinois [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial costs of land | 0 | ||||
Initial costs of buildings and improvements | 0 | ||||
Initial costs of construction in progress | 17,764 | ||||
Costs capitalized subsequent to acquisition, Land | 0 | ||||
Costs capitalized subsequent to acquisition, Buildings and improvements | 0 | ||||
Costs capitalized subsequent to acquisition, Construction in progress | 4,022 | ||||
Gross carrying amount, Land | 0 | ||||
Gross carrying amount, Buildings and improvements | 0 | ||||
Gross carrying amount, Construction in progress | 21,786 | ||||
Accumulated depreciation and amortization | 0 | ||||
Date of acquisition | 8-Jul-14 | ||||
Owned Properties [Member] | Miami Florida [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial costs of land | 1,777 | ||||
Initial costs of buildings and improvements | 6,955 | ||||
Initial costs of construction in progress | 0 | ||||
Costs capitalized subsequent to acquisition, Land | 0 | ||||
Costs capitalized subsequent to acquisition, Buildings and improvements | 21,831 | ||||
Costs capitalized subsequent to acquisition, Construction in progress | 129 | ||||
Gross carrying amount, Land | 1,777 | ||||
Gross carrying amount, Buildings and improvements | 28,786 | ||||
Gross carrying amount, Construction in progress | 129 | ||||
Accumulated depreciation and amortization | -6,814 | ||||
Date of acquisition | 6-Mar-08 | ||||
Owned Properties [Member] | Lenexa Kansas [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial costs of land | 400 | ||||
Initial costs of buildings and improvements | 3,100 | ||||
Initial costs of construction in progress | 0 | ||||
Costs capitalized subsequent to acquisition, Land | 37 | ||||
Costs capitalized subsequent to acquisition, Buildings and improvements | 198 | ||||
Costs capitalized subsequent to acquisition, Construction in progress | 25 | ||||
Gross carrying amount, Land | 437 | ||||
Gross carrying amount, Buildings and improvements | 3,298 | ||||
Gross carrying amount, Construction in progress | 25 | ||||
Accumulated depreciation and amortization | -8 | ||||
Date of acquisition | 3-Jun-11 | ||||
Owned Properties [Member] | Wichita Kansas [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial costs of land | 0 | ||||
Initial costs of buildings and improvements | 686 | ||||
Initial costs of construction in progress | 0 | ||||
Costs capitalized subsequent to acquisition, Land | 0 | ||||
Costs capitalized subsequent to acquisition, Buildings and improvements | 723 | ||||
Costs capitalized subsequent to acquisition, Construction in progress | 0 | ||||
Gross carrying amount, Land | 0 | ||||
Gross carrying amount, Buildings and improvements | 1,409 | ||||
Gross carrying amount, Construction in progress | 0 | ||||
Accumulated depreciation and amortization | -550 | ||||
Date of acquisition | 31-Mar-05 | ||||
Leased Properties [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial costs of land | 0 | ||||
Initial costs of buildings and improvements | 1,985 | ||||
Initial costs of construction in progress | 0 | ||||
Costs capitalized subsequent to acquisition, Land | 0 | ||||
Costs capitalized subsequent to acquisition, Buildings and improvements | 26,185 | ||||
Costs capitalized subsequent to acquisition, Construction in progress | 947 | ||||
Gross carrying amount, Land | 0 | ||||
Gross carrying amount, Buildings and improvements | 28,170 | ||||
Gross carrying amount, Construction in progress | 947 | ||||
Accumulated depreciation and amortization | -11,384 | ||||
Leased Properties [Member] | Jersey City New Jersey [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial costs of land | 0 | ||||
Initial costs of buildings and improvements | 1,985 | ||||
Initial costs of construction in progress | 0 | ||||
Costs capitalized subsequent to acquisition, Land | 0 | ||||
Costs capitalized subsequent to acquisition, Buildings and improvements | 25,333 | ||||
Costs capitalized subsequent to acquisition, Construction in progress | 920 | ||||
Gross carrying amount, Land | 0 | ||||
Gross carrying amount, Buildings and improvements | 27,318 | ||||
Gross carrying amount, Construction in progress | 920 | ||||
Accumulated depreciation and amortization | -10,879 | ||||
Date of acquisition | 1-Nov-06 | ||||
Leased Properties [Member] | Overland Park Kansas [Member] | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial costs of land | 0 | ||||
Initial costs of buildings and improvements | 0 | ||||
Initial costs of construction in progress | 0 | ||||
Costs capitalized subsequent to acquisition, Land | 0 | ||||
Costs capitalized subsequent to acquisition, Buildings and improvements | 852 | ||||
Costs capitalized subsequent to acquisition, Construction in progress | 27 | ||||
Gross carrying amount, Land | 0 | ||||
Gross carrying amount, Buildings and improvements | 852 | ||||
Gross carrying amount, Construction in progress | 27 | ||||
Accumulated depreciation and amortization | ($505) | ||||
[1] | Owned facility subject to long-term ground sublease. |
Schedule_III_Real_Estate_Inves2
Schedule III - Real Estate Investments (Summary of Historical Cost and Accumulated Depreciation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property | |||
Balance, beginning of period | $905,735 | $734,828 | $555,586 |
Disposals | -54 | 0 | -794 |
Additions (acquisitions and improvements) | 271,901 | 170,907 | 180,036 |
Balance, end of period | 1,177,582 | 905,735 | 734,828 |
Accumulated depreciation | |||
Balance, beginning of period | -137,725 | -102,900 | -74,536 |
Disposals | 39 | 0 | 162 |
Additions (depreciation and amortization expense) | -42,481 | -34,825 | -28,526 |
Balance, end of period | ($180,167) | ($137,725) | ($102,900) |