Posted By Rich Miller On August 19, 2013 @ 12:07 pm In Investing,QTS (Quality Technology Services) | No Comments
QTS (Quality Technology Services) has confirmed plans for a $300 million initial public offering (IPO) that will help fund an expansion of the company’s footprint, focused on its massive data centers in Dallas, Richmond and Atlanta.
In an SEC filing , QTS outlined its plans to go public on the New York Stock Exchange, trading under the symbol QTS. The company plans to convert to a real estate investment trust (REIT) and operate as QTS Realty Trust Inc.
QTS  has big ambitions for the future, fueled by its strategy of buying massive industrial facilities and adapting them for data center use. In its SEC filing, the company said it plans to expand seven of its data centers across the county, investing up to $277 million to add more than 312,000 square feet of customer space in key markets over the next two years. The majority of that growth is projected for Dallas ($88 million investment), Richmond ($78 million) and Atlanta Metro ($54 million) , but QTS also plans to add more space at existing sites in Jersey City, Sacramento, Santa Clara and Suwanee, Georgia.
“We believe our redevelopment pipeline provides us with a multi-year growth opportunity at very attractive risk-adjusted returns without the need to construct new buildings or acquire additional properties or land for development,” the company said. “We currently target a stabilized return on invested capital of at least 15% on average for our redevelopment projects.”
QTS operates 10 data centers in seven states offering 714,000 square feet of raised floor data center space and 390 megawatts of available utility power. The portfolio also includes 2.2 million square feet available for redevelopment, including 1.1 million square feet that can be converted to raised floor data center space.
On the financial front, QTS reported revenue of $84.4 million in the first half of 2013, with net income of $7.1 million and funds from operation (FFO, a key benchmark for REITs) of $26.7 million. In 2012, the company had revenues of $157.6 million and FFO of $45.2 million.
Here’s a look at some of the additional opertating details highlighted in the company’s IPO filing:
No date was provided for when QTS plans to commence trading.
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URL to article: http://www.datacenterknowledge.com/archives/2013/08/19/qts-confirms-ipo-plans-major-expansio/
URLs in this post:
 SEC filing: http://www.sec.gov/Archives/edgar/data/1577368/000119312513337977/d541696ds11.htm
 QTS: http://www.qualitytech.com/
 Rich Miller: http://www.datacenterknowledge.com/archives/author/richm/
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