Fri, Mar. 27, 8:02 AM
- DuPont Fabros (NYSE:DFT) is lower by 1.9% premarket after Goldman starts it with a Sell rating and $29 price target on concern about customer concentration, repricing risk, and limited visibility into future growth.
- Digital Realty (NYSE:DLR) and Equinix (NASDAQ:EQIX) are started at Neutral, and QTS Realty (NYSE:QTS) rates a Buy.
Fri, Mar. 13, 6:05 PM
- Data center owner Equinix (NASDAQ:EQIX), real estate trust SL Green (NYSE:SLG), and apparel maker Hanesbrands (NYSE:HBI) will be joining the S&P 500 after the March 20 close. Medical distributor Henry Schein (NASDAQ:HSIC) will be joining after the March 17 close.
- Leaving the index are oil/gas producer Denbury Resources (NYSE:DNR), energy services provider Nabors (NYSE:NBR), beauty product maker Avon (NYSE:AVP), and medical device maker CareFusion (about to be acquired). Denbury, Nabors, and Avon will be joining the S&P MidCap 400, taking Equinix, SL Green, and Hanesbrands' spots.
- Also: Buffalo Wild Wings (NASDAQ:BWLD) is taking Henry Schein's place in the S&P 400 on March 17, and Talmer Bancorp (NASDAQ:TLMR) Buffalo Wild Wings' spot in the S&P SmallCap 600.
- EQIX +2.1% AH. SLG +2%. HBI +3.7%. TLMR +3.6%. NBR -1.8%.
Thu, Mar. 5, 4:01 PM
- BofA/Merrill reports it has confirmed Equinix's (NASDAQ:EQIX) REIT conversion plans have been approved (as has generally been expected), and that it expects the data center owner to be added to the FTSE NAREIT benchmark Index.
- Equinix has already signed off on a $7.57/share distribution needed to gain REIT eligibility. In December, the company announced it would begin operating as a REIT in 2015.
- Shares are less than $5 away from a high of $238.81.
Fri, Feb. 20, 1:15 PM
- Down AH yesterday after missing Q4 EPS estimates (while beating on revenue) and offering light guidance, Equinix (EQIX +2.3%) is now higher. Shares are less than $2 away from an all-time high of $235.84.
- The data center owner is guiding for Q1 revenue of $634M-$638M (below a $647.6M consensus), and full-year revenue of "greater than" $2.63B (below a $2.69B consensus). Forex is respectively expected to impact Q1 and full-year revenue by $19M and $100M.
- While 2015 revenue guidance implies 8% Y/Y growth, AFFO is expected to rise 12% to "greater than" $810M. Capex is expected to rise to $700M-$800M from 2014's $660.2M.
- Q4 AFFO was $194.5M (+10% Y/Y), and 2014 AFFO $761.7M (+12%). Quarterly business metrics were solid: Billed cabinets +2% Q/Q and +10% Y/Y to 97.9K; monthly recurring revenue per cabinet +1% and +2% to $2,001; and cross-connects +4% and +14% to 146.8K.
- Q4 results, PR, earnings slides (.pdf)
Thu, Feb. 19, 4:42 PM
Thu, Feb. 19, 4:18 PM
Wed, Feb. 18, 5:35 PM
Thu, Feb. 5, 1:06 PM
- Fans of the sector in general thanks to rising rents, quick lease-up of development projects, and firm yields, MLV's Jon Petersen and Jay Hanna are particularly bullish on smaller-cap players who can increase FFO at an above-average rate. Their top picks are thus: CoreSite Realty (COR +1.2%) and QTS Realty (QTS +1.9%).
- CoreSite, says the duo, has the best-located portfolio in their coverage universe (Equinix - EQIX - is better, but they don't cover it), and thus should trade at the lowest cap rate.
- "Management at QTS has a knack for finding infrastructure-rich properties, for a fraction of the initial development cost, that are ideal for data-center conversion," says the team. The company can about double its leasable square feet just by building out already-completed shells.
- Rated at Hold are: CyrusOne (CONE +1%), Digital Realty (DLR +0.4%), and DuPont Fabros (DFT -9%).
- Dupont Fabros is tumbling today following Q4 results in which the company took a charge and guided conservatively for 2015 thanks to a tenant which has stopped paying rent.
Mon, Jan. 26, 7:41 PM| Comment!
Tue, Jan. 20, 6:44 PM
- Equinix (NASDAQ:EQIX) has acquired Nimbo, an IT services firm focused on helping enterprises implement hybrid clouds. Terms are undisclosed.
- Nimbo's services include helping migrate business apps to cloud environments, integrating/connecting traditional data centers with cloud servers, and managing hybrid clouds. Though growing quickly and claiming Fortune 100 clients, 2014 revenue was below $10M.
- Equinix, which counts plenty of major enterprises among its data center clients, says Nimbo will help build Equinix's "professional services capabilities to support data center migrations, WAN optimization and the creation of scalable, high performing hybrid cloud solutions."
Dec. 23, 2014, 4:43 PM
- As expected, Equinix's (NASDAQ:EQIX) board has unanimously approved the company's conversion into a REIT for tax purposes "effective for its taxable year commencing January 1, 2015."
- Equnix still hasn't received a REIT private letter ruling (PLR) from the IRS, but is confident it will get a favorable one either by year's end or in early 2015, given "existing legal precedent, opinions of counsel and the fact that many other data center companies currently operate as REITs."
- A $7.57/share distribution needed to gain REIT eligibility remains on tap.
Dec. 18, 2014, 4:42 PM
- Equinix's (NASDAQ:EQIX) new 5-year credit facility consists of a $1B revolving credit facility and a $500M term loan facility.
- Some of the term loan proceeds have been used to retire debt under a prior $750M credit facility that has been terminated. The remaining credit facility proceeds will be used for "general corporate purposes," including Equinix's the $416M ($7.57/share) distribution Equinix plans to make to gain REIT eligibility.
- The data center owner is only a month removed from raising $1.25B in debt.
Nov. 18, 2014, 11:42 AM
- Equnix (EQIX +0.6%) has upsized its senior note offering to $1.25B from a prior $1B. It's selling $750M worth of 5.375% 2022 notes, and $500M worth of 5.75% 2025 notes.
- Net proceeds are expected to total $1.233B. As previously stated, the funds will be used to redeem outstanding 7% 2021 notes, and for "general corporate purposes."
Nov. 17, 2014, 9:32 AM| Comment!
Oct. 30, 2014, 5:48 PM
Oct. 30, 2014, 11:17 AM
- In addition to posting mixed Q3 results, Equinix (NASDAQ:EQIX) is guiding for Q4 revenue of $627M-$631M, below a $642M consensus.
- However, the data center owner reported a 3.4K Q/Q increase in net billable cabinets for Q3, a record figure and (as noted on the CC) 70% above Equinix's 4-quarter average. Total billable cabinets stand at 96.1K - 44.9K in North America, 32.2K in Europe, 19K in Asia-Pac.
- Likewise, cross-connects rose by 5.7K to 141.2K, and exchange ports by 143 to 2,557. Total customers rose by 60 to 4,700, with the termination rate falling to 1.9% from 2.7% in Q2 and 2.5% a year ago.
- Gross margin was 68%, flat Q/Q and Y/Y. Adjusted EBITDA margin was 46% vs. 45% in Q2 and 46% a year ago. $43M was spent on buybacks. Equinix ended Q3 with $501M in cash, and $4B in debt.
- Equinix is guiding for full-year adjusted discretionary free cash flow of $590M-$620M, and adjusted funds from operations (AFFO) of greater than $745M. REIT approval is still expected by year's end.
- Several data center colocation, Web hosting, and interconnection services firms are also higher on a day the Nasdaq is down 0.5%. RAX +1.5%. INAP +3.5%. DLR +1.3%. CONE +1.4%.
- Q3 results, PR, slides (.pdf), datasheet (.pdf)
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