67 WALL STREET, New York - February 20, 2014 - The Wall Street Transcript has just published its 2013 IPOs Report offering a timely review of companies new to the stock market. This special feature contains expert industry commentary through in-depth, detailed interviews with CEOs and senior executives of new public companies. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Initial Public Offerings - IPOs
Companies include: CyrusOne (CONE)
In the following excerpt from the 2013 IPOs Report, the CEO of CyrusOne (CONE) discusses his outlook and strategic vision for his company for investors:
TWST: I'd like to start off with just a brief overview of CyrusOne's business.
Mr. Wojtaszek: CyrusOne is a very large data center provider. We operate 25 facilities with over a million square feet of data center space in the United States, Europe and Asia. What makes CyrusOne unique is our focus on enterprise customers – our target customers are Fortune 1000 companies. Currently, we have about 130 Fortune 1000 customers, which account for about 75% of our revenue. We have been consistently growing at a fast pace, around 20% a year for a while, and as of early 2013, we successfully IPO-ed the company and are listed on Nasdaq with the ticker symbol CONE.
TWST: CyrusOne converted to a REIT last year, what was the reason for that, and how that's different from being a data center that's not a REIT?
Mr. Wojtaszek: From a day-to-day operational perspective, there is really no difference. In fact, one of the things we spent quite a bit of time looking at was the impact of converting from a C-Corporation to a REIT. The primary difference is that the legal entity formats change, and there are different tax benefits associated with being a REIT. But the way we engage our customers and deliver services to them is unchanged.
TWST: For a potential investor, is CyrusOne a REIT play or a data center play, or is it both?
Mr. Wojtaszek: It's a little bit of both. From a REIT perspective, all of our assets are real estate assets. These are specialized types of real estate assets, but 20-, 30-year-lived assets. What makes this attractive from a REIT investor's perspective is that we have a high yield and are a growing company. Real estate investments are very attractive to this type of asset class. And unlike other real estate assets that don't grow, we are growing at 20% a year and generating a significant amount of cash flow.
TWST: Can you give us a sense of your agenda? What's top-of-mind over the next 12 to 24 months?
Mr. Wojtaszek: We have been growing at, as I mentioned, a 20% rate of growth, and we're expecting to continue that growth for the next several years. From an expansion perspective...
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.