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CoreSite Realty Corp Delivers 13% Growth and Raises Full-Year Guidance

By Patrick Morris - Jul 23, 2014 at 10:11AM

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CoreSite Realty continued its impressive run as its funds from operations rose by 13% over the second quarter of last year.

Today CoreSite Realty ( COR -0.29% ) announced its second-quarter funds from operations (FFO) stood at $0.51 in the second quarter, which was a 13.3% improvement over the second quarter of 2013.

In total there were a number of impressive improvements over the second quarter of last year, as the data center revenue at CoreSite Realty rose by 14.5%, from $55.6 million in the second quarter of last year to $63.7 million in the most recent quarter.

"Our second-quarter financial results reflect continued systematic execution of our business plan," noted the CEO of CoreSite, Tom Ray, in the announcement. "We are pleased at the continued progress of our sales and marketing teams, with new and expansion sales of turn-key data center capacity for the quarter representing our highest volume since we became a public company."

In addition, the company, which provides "secure, reliable, high-performance data center solutions," also noted it had 121 new and expansion center leases, which added $9.4 million of annualized rent in the second quarter. It also saw renewal leases of $7 million in annualized rent in the second quarter. These combined with other improvements allowed CoreSite to see "record sales of turn-key data center space."

"Second-quarter sales production reflects the execution of a large lease in the Bay Area and strong leasing across the remainder of the portfolio led by Los Angeles, Boston, and Northern Virginia," Ray said to conclude his remarks.

In addition to the impressive year-over-year improvements seen in the second quarter, CoreSite also noted it would be raising its full year guidance for its FFO from between $2.00 and $2.10 to now stand at $2.07 to $2.15. Last year its FFO stood at $1.82, meaning it now expects its full-year improvement to be between 14% and 18%. 

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