An view from inside a CoreSite facility, taken from the comapny's website
(WEB HOST INDUSTRY REVIEW) — Data center provider CoreSite Realty Corporation (www.coresite.com) – supplier of data center space to many hosting providers – issued its quarterly report for the period ending September 30 this week, a notable quarter for the now-public company that included the completion of its initial public offering.
The report details the results of the IPO, as well as provide some earnings numbers the company says may not be the most accurate grounds for measuring its performance going forward, based on some uncommon costs associated with the IPO and its recent acquisitions.
CoreSite is planning a conference call to discuss the results at 12:00 p.m. Eastern time, Friday, November 12. Details for a webcast of the call are available in the investors section of the comapny’s website.
The IPO was the quarter’s most significant of the quarter for the company. Completed September 28, 2010, the offering generated $289.2 million from the sale of about 19.5 million shares of common stock.
“Our company posted a solid quarter. We completed our IPO, advanced our leasing efforts and delivered valuable inventory at a very competitive cost.” says Tom Ray, president and CEO, quoted in the press release that accompanied the quarterly results. “We also executed on our strategy to recapture lower-yielding space and re-lease it at higher-yielding current market rates. With our IPO complete, we benefit from a conservatively leveraged balance sheet, positioning us favorably for growth. We have several meaningful avenues of growth as we continue to capture the mark-to-market opportunity on our existing leases, lease-up our 210,649 NRSF of readily available data center space, and deliver our development and redevelopment projects as market demand and leasing success warrant.”
The company reported a net loss of $5.1 for the three months ending September 30, 2010, compared to a loss of $2.3 million for the “CoreSite predecessor” for the same period in 2009. CoreSite also reported a net loss of $5.1 million over the nine months ending September 30, 2010, compared to a $6.9 million loss for the same period the previous year.
CoreSite says the results for the third quarter of 2010 do not reflect a full quarter of operations for the CoreSite predecessor and its acquired properties, and do not reflect expenses related to the initial public offering, or the acquisitions.
CoreSite was created in 2009 out of CRG West, the organization that had been created to manage the telecom assets of private equity firm The Carlyle Group.
“Results for subsequent periods are expected to provide more meaningful insight into the financial and operational activities of the company,” says the press release.
Shares of CoreSite were down slightly on Friday, following the earnings release on Thursday – to $13.66 from Thursday’s close of $13.80 – but not to an extent that would indicate any serious concern on the part of investors. The stock’s price has fallen somewhat since the beginning of the month, when it was trading at $15, and from a high of $16.42 immediately following the IPO.
About Liam Eagle
Liam Eagle has worked as a contributor to the Web Host Industry Review since its inception in 2000, and as editor since 2003. He has been editor of the WHIR's print magazine since its launch. His daily involvement in the gathering and reporting of Web hosting news and his regular interaction with Web hosting leaders gives him an uncommonly broad appreciation of the issues and tends facing the business. Through his WHIR blog, Liam spots Web hosting trends and offers opinions on the industry-wide impacts of major developments and the motivation behind big announcements. Follow him on Twitter @liameagle
No related posts.
