P1Y0001490892--12-312021Q3falseCoreSite Realty Corp44201031427681530001490892us-gaap:CommonStockMember2021-07-012021-09-300001490892us-gaap:ParentMember2021-09-300001490892us-gaap:NoncontrollingInterestMember2021-09-300001490892us-gaap:AdditionalPaidInCapitalMember2021-09-300001490892us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001490892us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2021-09-300001490892us-gaap:ParentMember2021-06-300001490892us-gaap:NoncontrollingInterestMember2021-06-300001490892us-gaap:AdditionalPaidInCapitalMember2021-06-300001490892us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001490892us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2021-06-3000014908922021-06-300001490892us-gaap:ParentMember2021-03-310001490892us-gaap:NoncontrollingInterestMember2021-03-310001490892us-gaap:AdditionalPaidInCapitalMember2021-03-310001490892us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001490892us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2021-03-3100014908922021-03-310001490892us-gaap:ParentMember2020-12-310001490892us-gaap:NoncontrollingInterestMember2020-12-310001490892us-gaap:AdditionalPaidInCapitalMember2020-12-310001490892us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001490892us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2020-12-310001490892us-gaap:ParentMember2020-09-300001490892us-gaap:NoncontrollingInterestMember2020-09-300001490892us-gaap:AdditionalPaidInCapitalMember2020-09-300001490892us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300001490892us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2020-09-300001490892us-gaap:ParentMember2020-06-300001490892us-gaap:NoncontrollingInterestMember2020-06-300001490892us-gaap:AdditionalPaidInCapitalMember2020-06-300001490892us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001490892us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2020-06-3000014908922020-06-300001490892us-gaap:ParentMember2020-03-310001490892us-gaap:NoncontrollingInterestMember2020-03-310001490892us-gaap:AdditionalPaidInCapitalMember2020-03-310001490892us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001490892us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2020-03-3100014908922020-03-310001490892us-gaap:ParentMember2019-12-310001490892us-gaap:NoncontrollingInterestMember2019-12-310001490892us-gaap:AdditionalPaidInCapitalMember2019-12-310001490892us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001490892us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2019-12-310001490892us-gaap:CommonStockMember2021-09-300001490892us-gaap:CommonStockMember2021-06-300001490892us-gaap:CommonStockMember2021-03-310001490892us-gaap:CommonStockMember2020-12-310001490892us-gaap:CommonStockMember2020-09-300001490892us-gaap:CommonStockMember2020-06-300001490892us-gaap:CommonStockMember2020-03-310001490892us-gaap:CommonStockMember2019-12-310001490892us-gaap:EmployeeStockOptionMembercor:EquityIncentive2010PlanMember2021-01-012021-09-300001490892us-gaap:EmployeeStockOptionMembercor:EquityIncentive2010PlanMember2020-12-310001490892cor:EquityIncentive2010PlanMember2021-09-300001490892us-gaap:PerformanceSharesMembercor:EquityIncentive2010PlanMember2020-01-012020-09-300001490892srt:WeightedAverageMemberus-gaap:PerformanceSharesMembercor:EquityIncentive2010PlanMember2021-09-300001490892srt:WeightedAverageMemberus-gaap:PerformanceSharesMembercor:EquityIncentive2010PlanMember2020-12-310001490892srt:MinimumMemberus-gaap:PerformanceSharesMembercor:EquityIncentive2010PlanMember2021-09-300001490892srt:MaximumMemberus-gaap:PerformanceSharesMembercor:EquityIncentive2010PlanMember2021-09-300001490892cor:TargetMemberus-gaap:PerformanceSharesMembercor:EquityIncentive2010PlanMember2021-09-300001490892us-gaap:RestrictedStockMembercor:EquityIncentive2010PlanMember2021-09-300001490892srt:MinimumMemberus-gaap:PerformanceSharesMembercor:EquityIncentive2010PlanMember2020-12-310001490892srt:MaximumMemberus-gaap:PerformanceSharesMembercor:EquityIncentive2010PlanMember2020-12-310001490892cor:TargetMemberus-gaap:PerformanceSharesMembercor:EquityIncentive2010PlanMember2020-12-310001490892us-gaap:RestrictedStockMembercor:EquityIncentive2010PlanMember2020-12-310001490892us-gaap:RestrictedStockMembercor:EquityIncentive2010PlanMember2021-01-012021-09-300001490892srt:WeightedAverageMemberus-gaap:PerformanceSharesMembercor:EquityIncentive2010PlanMember2021-01-012021-09-300001490892srt:WeightedAverageMembercor:RestrictedAwardsMembercor:EquityIncentive2010PlanMember2021-01-012021-09-300001490892us-gaap:BuildingMembersrt:MinimumMember2021-01-012021-09-300001490892us-gaap:BuildingMembersrt:MaximumMember2021-01-012021-09-300001490892us-gaap:BuildingImprovementsMembersrt:MinimumMember2021-01-012021-09-300001490892us-gaap:BuildingImprovementsMembersrt:MaximumMember2021-01-012021-09-300001490892us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001490892cor:RentalPowerAndRelatedRevenueMember2021-07-012021-09-300001490892cor:OfficeLightIndustrialAndOtherRevenueMember2021-07-012021-09-300001490892cor:RentalPowerAndRelatedRevenueMember2021-01-012021-09-300001490892cor:OfficeLightIndustrialAndOtherRevenueMember2021-01-012021-09-300001490892cor:RentalPowerAndRelatedRevenueMember2020-07-012020-09-300001490892cor:OfficeLightIndustrialAndOtherRevenueMember2020-07-012020-09-300001490892cor:RentalPowerAndRelatedRevenueMember2020-01-012020-09-300001490892cor:OfficeLightIndustrialAndOtherRevenueMember2020-01-012020-09-300001490892srt:PartnershipInterestMembercor:CarlyleGroupMember2021-09-300001490892us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001490892us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001490892us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001490892us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300001490892us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001490892srt:PartnershipInterestMembercor:CreditAgreementMember2021-09-300001490892srt:MinimumMember2021-09-300001490892srt:MaximumMember2021-09-300001490892cor:NY1NewYorkNYMember2021-09-272021-09-270001490892us-gaap:RestrictedStockMember2021-07-012021-09-300001490892us-gaap:RestrictedStockMember2021-01-012021-09-300001490892us-gaap:EmployeeStockOptionMember2021-01-012021-09-300001490892us-gaap:RestrictedStockMember2020-07-012020-09-300001490892us-gaap:EmployeeStockOptionMember2020-07-012020-09-300001490892us-gaap:RestrictedStockMember2020-01-012020-09-300001490892us-gaap:EmployeeStockOptionMember2020-01-012020-09-300001490892us-gaap:PerformanceSharesMembercor:EquityIncentive2010PlanMember2021-09-300001490892cor:RestrictedAwardsMembercor:EquityIncentive2010PlanMember2021-09-300001490892us-gaap:NoncontrollingInterestMember2021-07-012021-09-300001490892us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2021-07-012021-09-300001490892us-gaap:NoncontrollingInterestMember2021-04-012021-06-300001490892us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2021-04-012021-06-300001490892us-gaap:NoncontrollingInterestMember2021-01-012021-03-310001490892us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2021-01-012021-03-310001490892us-gaap:NoncontrollingInterestMember2020-07-012020-09-300001490892us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2020-07-012020-09-300001490892us-gaap:NoncontrollingInterestMember2020-04-012020-06-300001490892us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2020-04-012020-06-300001490892us-gaap:NoncontrollingInterestMember2020-01-012020-03-310001490892us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2020-01-012020-03-310001490892cor:SanFranciscoBayMember2021-09-300001490892cor:NorthernVirginiaMember2021-09-300001490892cor:NewYorkCityMember2021-09-300001490892cor:MiamiMember2021-09-300001490892cor:LosAngelesMember2021-09-300001490892cor:DenverMember2021-09-300001490892cor:ChicagoMember2021-09-300001490892cor:BostonMember2021-09-300001490892cor:SanFranciscoBayMember2020-12-310001490892cor:NorthernVirginiaMember2020-12-310001490892cor:NewYorkCityMember2020-12-310001490892cor:MiamiMember2020-12-310001490892cor:LosAngelesMember2020-12-310001490892cor:DenverMember2020-12-310001490892cor:ChicagoMember2020-12-310001490892cor:BostonMember2020-12-310001490892us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300001490892us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001490892cor:SecondInterestRateSwapExpiringApril2025Memberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001490892cor:InterestRateSwapExpiringOctober2023Memberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001490892cor:InterestRateSwapExpiringApril2025Memberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001490892cor:InterestRateSwapExpiringApril2023Memberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001490892cor:InterestRateSwapExpiringApril2022Memberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001490892cor:InterestRateSwapExpiring2024OctoberMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001490892cor:SecondInterestRateSwapExpiringApril2025Memberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300001490892cor:InterestRateSwapExpiringOctober2023Memberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300001490892cor:InterestRateSwapExpiringApril2025Memberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300001490892cor:InterestRateSwapExpiringApril2023Memberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300001490892cor:InterestRateSwapExpiringApril2022Memberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300001490892cor:InterestRateSwapExpiring2024OctoberMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300001490892us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300001490892cor:SecondInterestRateSwapExpiringApril2025Memberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300001490892cor:InterestRateSwapExpiringOctober2023Memberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300001490892cor:InterestRateSwapExpiringApril2025Memberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300001490892cor:InterestRateSwapExpiringApril2023Memberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300001490892cor:InterestRateSwapExpiringApril2022Memberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300001490892cor:InterestRateSwapExpiring2024OctoberMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300001490892us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001490892cor:SecondInterestRateSwapExpiringApril2025Memberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001490892cor:InterestRateSwapExpiringOctober2023Memberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001490892cor:InterestRateSwapExpiringApril2025Memberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001490892cor:InterestRateSwapExpiringApril2023Memberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001490892cor:InterestRateSwapExpiringApril2022Memberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001490892cor:InterestRateSwapExpiring2024OctoberMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001490892us-gaap:RevolvingCreditFacilityMember2021-09-300001490892cor:SeriesCSeniorUnsecuredNoteDue2027Member2021-09-300001490892cor:SeniorUnsecuredTermNotes2029Member2021-09-300001490892cor:SeniorUnsecuredTermNotes2026Member2021-09-300001490892cor:SeniorUnsecuredTermNotes2024Member2021-09-300001490892cor:SeniorUnsecuredTermNotes2023Member2021-09-300001490892cor:SeniorUnsecuredTermLoan2024Member2021-09-300001490892cor:SeniorUnsecuredTermLoan2022Member2021-09-300001490892us-gaap:RevolvingCreditFacilityMember2020-12-310001490892cor:SeriesCSeniorUnsecuredNoteDue2027Member2020-12-310001490892cor:SeniorUnsecuredTermNotes2029Member2020-12-310001490892cor:SeniorUnsecuredTermNotes2026Member2020-12-310001490892cor:SeniorUnsecuredTermNotes2024Member2020-12-310001490892cor:SeniorUnsecuredTermNotes2023Member2020-12-310001490892cor:SeniorUnsecuredTermLoan2025Member2020-12-310001490892cor:SeniorUnsecuredTermLoan2024Member2020-12-310001490892cor:SeniorUnsecuredTermLoan2022Member2020-12-310001490892srt:PartnershipInterestMembersrt:MaximumMemberus-gaap:RevolvingCreditFacilityMembercor:SeniorUnsecuredTermLoan2025Memberus-gaap:LondonInterbankOfferedRateLIBORMember2021-01-012021-09-300001490892srt:PartnershipInterestMembersrt:MinimumMembercor:SeniorUnsecuredTermLoan2025Memberus-gaap:LondonInterbankOfferedRateLIBORMember2021-01-012021-09-300001490892srt:MinimumMembercor:SeniorUnsecuredTermLoan2025Membercor:SeniorUnsecuredTermLoanMemberus-gaap:BaseRateMember2021-01-012021-09-300001490892srt:MaximumMembercor:SeniorUnsecuredTermLoan2025Membercor:SeniorUnsecuredTermLoanMemberus-gaap:BaseRateMember2021-01-012021-09-300001490892us-gaap:RevolvingCreditFacilityMembercor:CreditAgreementMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-01-012021-09-300001490892srt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-01-012021-09-300001490892srt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:BaseRateMember2021-01-012021-09-300001490892srt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-01-012021-09-300001490892srt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:BaseRateMember2021-01-012021-09-300001490892cor:SeniorUnsecuredTermLoan2025Member2021-01-012021-09-300001490892us-gaap:ConstructionContractsMember2021-09-300001490892cor:TelecommunicationsCapacityMember2021-09-300001490892us-gaap:CommonStockMember2021-09-022021-09-020001490892us-gaap:CommonStockMember2021-05-192021-05-190001490892us-gaap:CommonStockMember2021-03-042021-03-040001490892us-gaap:CommonStockMember2021-01-012021-09-300001490892us-gaap:CommonStockMember2020-09-022020-09-020001490892us-gaap:CommonStockMember2020-05-202020-05-200001490892us-gaap:CommonStockMember2020-03-052020-03-050001490892us-gaap:CommonStockMember2020-01-012020-09-300001490892us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-10-012021-10-0100014908922020-09-3000014908922019-12-310001490892cor:NY1NewYorkNYMember2021-09-270001490892us-gaap:ParentMember2021-07-012021-09-300001490892us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-3000014908922021-07-012021-09-300001490892us-gaap:ParentMember2021-04-012021-06-300001490892us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-3000014908922021-04-012021-06-300001490892us-gaap:ParentMember2021-01-012021-03-310001490892us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-3100014908922021-01-012021-03-310001490892us-gaap:ParentMember2020-07-012020-09-300001490892us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-3000014908922020-07-012020-09-300001490892us-gaap:ParentMember2020-04-012020-06-300001490892us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-3000014908922020-04-012020-06-300001490892us-gaap:ParentMember2020-01-012020-03-310001490892us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-3100014908922020-01-012020-03-3100014908922021-10-270001490892us-gaap:PerformanceSharesMembercor:EquityIncentive2010PlanMember2021-01-012021-09-300001490892cor:TargetMemberus-gaap:PerformanceSharesMembercor:EquityIncentive2010PlanMember2021-01-012021-09-300001490892srt:MinimumMemberus-gaap:PerformanceSharesMembercor:EquityIncentive2010PlanMember2021-01-012021-09-300001490892srt:MaximumMemberus-gaap:PerformanceSharesMembercor:EquityIncentive2010PlanMember2021-01-012021-09-300001490892srt:PartnershipInterestMembercor:LessThanWhollyOwnedSubsidiariesMember2021-09-300001490892srt:PartnershipInterestMembercor:CoresiteRealtyCorporationMember2021-09-300001490892cor:CarlyleGroupMember2021-09-300001490892srt:PartnershipInterestMembercor:LessThanWhollyOwnedSubsidiariesMember2020-12-310001490892srt:PartnershipInterestMembercor:CoresiteRealtyCorporationMember2020-12-310001490892srt:PartnershipInterestMember2021-01-012021-09-300001490892cor:CarlyleGroupMember2021-01-012021-09-300001490892srt:PartnershipInterestMember2021-09-300001490892srt:PartnershipInterestMember2020-12-310001490892us-gaap:CommonStockMember2021-04-012021-06-300001490892us-gaap:CommonStockMember2021-01-012021-03-310001490892us-gaap:CommonStockMember2020-07-012020-09-300001490892us-gaap:CommonStockMember2020-04-012020-06-300001490892us-gaap:CommonStockMember2020-01-012020-03-3100014908922021-09-3000014908922020-12-3100014908922021-01-012021-09-3000014908922020-01-012020-09-300001490892srt:MaximumMembercor:CreditAgreementMember2021-09-300001490892cor:SeniorUnsecuredTermLoan2025Member2021-09-300001490892srt:MinimumMembercor:CreditAgreementMember2021-09-300001490892cor:CreditAgreementMember2021-09-300001490892cor:TelecommunicationsCapacityMembersrt:ScenarioForecastMember2021-01-012021-12-31iso4217:USDxbrli:purexbrli:sharesutr:sqftiso4217:USDxbrli:sharescor:segment

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2021

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                      to                     .

Commission file number: 001-34877

CoreSite Realty Corporation

(Exact name of registrant as specified in its charter)

Maryland

27-1925611

(State or other jurisdiction
of incorporation or organization)

(I.R.S. Employer
Identification No.)

1001 17th Street, Suite 500
Denver, CO

80202

(Address of principal executive offices)

(Zip Code)

(866777-2673

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol

Name of each exchange on which registered

Common Stock, $0.01 par value per share

COR

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   No .

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes   No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes   No

The number of shares of common stock outstanding at October 27, 2021, was 44,197,721.

Table of Contents

CORESITE REALTY CORPORATION

FORM 10-Q

FOR THE QUARTER ENDED September 30, 2021

TABLE OF CONTENTS

nine

 

    

PAGE

 

NO.

PART I. FINANCIAL INFORMATION

3

ITEM 1. Financial Statements

3

Condensed Consolidated Balance Sheets as of September 30, 2021, and December 31, 2020 (unaudited)

3

Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2021, and 2020 (unaudited)

4

Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2021, and 2020 (unaudited)

5

Condensed Consolidated Statements of Equity for the three months ended March 31, and June 30, September 30, 2021, and 2020 (unaudited)

6

Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2021, and 2020 (unaudited)

7

Notes to Condensed Consolidated Financial Statements (unaudited)

8

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

24

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk

38

ITEM 4. Controls and Procedures

38

PART II. OTHER INFORMATION

39

ITEM 1. Legal Proceedings

39

ITEM 1A. Risk Factors

39

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds

39

ITEM 3. Defaults Upon Senior Securities

39

ITEM 4. Mine Safety Disclosures

39

ITEM 5. Other Information

39

ITEM 6. Exhibits

40

Signatures

41

Exhibit 31.1

Exhibit 31.2

Exhibit 32.1

Exhibit 32.2

EX-101 INSTANCE DOCUMENT

EX-101 SCHEMA DOCUMENT

EX-101 CALCULATION LINKBASE DOCUMENT

EX-101 LABELS LINKBASE DOCUMENT

EX-101 PRESENTATION LINKBASE DOCUMENT

EX-101 DEFINITION LINKBASE DOCUMENT

2

Table of Contents

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CORESITE REALTY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands except share and per share data)

September 30,

December 31,

    

2021

    

2020

ASSETS

Investments in real estate:

Land

$

109,400

$

104,734

Buildings and improvements

2,315,125

2,273,536

2,424,525

2,378,270

Less: Accumulated depreciation and amortization

(986,095)

(867,975)

Net investment in operating properties

1,438,430

1,510,295

Construction in progress

375,168

319,411

Net investments in real estate

1,813,598

1,829,706

Operating lease right-of-use assets, net

172,439

173,928

Cash and cash equivalents

3,406

5,543

Accounts and other receivables, net of allowance for doubtful accounts of $57 and $511 as of September 30, 2021, and December 31, 2020, respectively

26,825

20,849

Lease intangibles, net of accumulated amortization of $5,261 and $3,913 as of September 30, 2021, and December 31, 2020, respectively

1,159

2,507

Goodwill

40,646

40,646

Other assets, net

108,922

103,094

Total assets

$

2,166,995

$

2,176,273

LIABILITIES AND EQUITY

Liabilities:

Debt, net of unamortized deferred financing costs of $5,961 and $7,589 as of September 30, 2021, and December 31, 2020, respectively

$

1,781,039

$

1,715,911

Operating lease liabilities

189,581

189,404

Accounts payable and accrued expenses

89,902

79,140

Accrued dividends and distributions

65,772

63,878

Acquired below-market lease contracts, net of accumulated amortization of $1,833 and $1,684 as of September 30, 2021, and December 31, 2020, respectively

2,164

2,313

Unearned revenue, prepaid rent and other liabilities

48,342

53,149

Total liabilities

2,176,800

2,103,795

Stockholders' equity (deficit):

Common Stock, par value $0.01, 100,000,000 shares authorized and 44,201,031 and 42,768,153 shares issued and outstanding at September 30, 2021, and December 31, 2020, respectively

436

422

Additional paid-in capital

570,746

555,595

Accumulated other comprehensive loss

(12,261)

(20,526)

Distributions in excess of net income

(567,771)

(471,910)

Total stockholders' equity (deficit)

(8,850)

63,581

Noncontrolling interests

(955)

8,897

Total equity (deficit)

(9,805)

72,478

Total liabilities and equity

$

2,166,995

$

2,176,273

See accompanying notes to condensed consolidated financial statements.

3

Table of Contents

CORESITE REALTY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited and in thousands except share and per share data)

Three Months Ended September 30,

Nine Months Ended September 30,

    

2021

    

2020

    

2021

    

2020

Operating revenues:

Data center revenue:

Rental, power, and related revenue

$

138,095

$

130,300

$

407,864

$

381,913

Interconnection revenue

22,994

21,144

67,760

62,126

Office, light-industrial and other revenue

2,769

2,537

8,000

7,847

Total operating revenues

163,858

153,981

483,624

451,886

Operating expenses:

Property operating and maintenance

49,940

44,986

138,536

126,206

Real estate taxes and insurance

5,184

5,989

18,925

17,778

Depreciation and amortization

45,072

41,759

135,067

124,529

Sales and marketing

6,186

5,901

17,852

17,882

General and administrative

12,167

10,854

35,465

33,724

Rent

9,292

8,966

27,352

26,360

Total operating expenses

127,841

118,455

373,197

346,479

Operating income

36,017

35,526

110,427

105,407

Other income

3,098

Interest expense

(11,894)

(11,384)

(35,999)

(33,153)

Income before income taxes

24,123

24,142

77,526

72,254

Income tax expense

(5)

(10)

(18)

(46)

Net income

$

24,118

$

24,132

$

77,508

$

72,208

Net income attributable to noncontrolling interests

2,339

3,000

8,612

12,557

Net income attributable to common shares

$

21,779

$

21,132

$

68,896

$

59,651

Net income per share attributable to common shares:

Basic

$

0.50

$

0.50

$

1.60

$

1.50

Diluted

$

0.50

$

0.50

$

1.60

$

1.49

Weighted average common shares outstanding

Basic

43,712,434

42,234,534

42,963,488

39,823,394

Diluted

43,907,135

42,404,396

43,165,724

39,995,993

See accompanying notes to condensed consolidated financial statements.

4

Table of Contents

CORESITE REALTY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited and in thousands)

Three Months Ended September 30,

Nine Months Ended September 30,

 

2021

 

2020

 

2021

 

2020

 

Net income

$

24,118

$

24,132

$

77,508

$

72,208

Other comprehensive (loss) income:

Unrealized gain (loss) on derivative contracts

(224)

4

4,062

(21,394)

Reclassification of other comprehensive loss to interest expense

1,961

1,836

5,754

3,149

Comprehensive income

25,855

25,972

87,324

53,963

Comprehensive income attributable to noncontrolling interests

2,508

3,224

9,741

7,916

Comprehensive income attributable to CoreSite Realty Corporation

$

23,347

$

22,748

$

77,583

$

46,047

See accompanying notes to condensed consolidated financial statements.

5

Table of Contents

CORESITE REALTY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(unaudited and in thousands except share data)

   

   

   

Accumulated

   

   

   

   

   

   

   

Additional

   

Other

   

Distributions

   

Total

   

   

   

   

Common Shares

   

Paid-in

   

Comprehensive

   

in Excess of

   

Stockholders'

   

Noncontrolling

   

Total

   

   

Number

    

Amount

   

Capital

   

Income (Loss)

   

Net Income

   

Equity (Deficit)

   

Interests

   

Equity (Deficit)

   

Balance at January 1, 2021

42,768,153

$

422

$

555,595

$

(20,526)

$

(471,910)

$

63,581

$

8,897

$

72,478

Redemption and reallocation of noncontrolling interests

1,300

1

(447)

(12)

(458)

458

Issuance of stock awards, net of forfeitures

212,419

Exercise of stock options

2,694

41

41

41

Share-based compensation

1

4,588

4,589

4,589

Dividends and distributions

(52,852)

(52,852)

(7,276)

(60,128)

Net income

21,868

21,868

3,047

24,915

Other comprehensive income

6,075

6,075

847

6,922

Balance at March 31, 2021

42,984,566

$

424

$

559,777

$

(14,463)

$

(502,894)

$

42,844

$

5,973

$

48,817

Redemption and reallocation of noncontrolling interests

1,200,000

12

1,612

(409)

1,215

(1,215)

Issuance of stock awards, net of forfeitures

18,066

Exercise of stock options

2,888

69

69

69

Share-based compensation

4,912

4,912

4,912

Dividends and distributions

(55,806)

(55,806)

(5,989)

(61,795)

Net income

25,249

25,249

3,226

28,475

Other comprehensive income

1,044

1,044

113

1,157

Balance at June 30, 2021

44,205,520

$

436

$

566,370

$

(13,828)

$

(533,451)

$

19,527

$

2,108

$

21,635

Redemption and reallocation of noncontrolling interests

(417)

(1)

(418)

418

Issuance of stock awards, net of forfeitures

(4,489)

Share-based compensation

4,793

4,793

4,793

Dividends and distributions

(56,099)

(56,099)

(5,989)

(62,088)

Net income

21,779

21,779

2,339

24,118

Other comprehensive income

1,568

1,568

169

1,737

Balance at September 30, 2021

44,201,031

$

436

$

570,746

$

(12,261)

$

(567,771)

$

(8,850)

$

(955)

$

(9,805)

   

   

   

Accumulated

   

   

   

   

   

   

Additional

   

Other

   

Distributions

   

Total

   

   

   

Common Shares

   

Paid-in

   

Comprehensive

   

in Excess of

   

Stockholders'

   

Noncontrolling

   

Total

   

Number

    

Amount

   

Capital

   

Income (Loss)

   

Net Income

   

Equity

   

Interests

   

Equity

Balance at January 1, 2020

37,701,042

$

373

$

512,324

$

(6,026)

$

(348,509)

$

158,162

$

55,726

$

213,888

Redemption of noncontrolling interests

2,140

11

11

(11)

Issuance of stock awards, net of forfeitures

199,541

Exercise of stock options

3,210

73

73

73

Share-based compensation

1

3,725

3,726

3,726

Dividends and distributions

(46,174)

(46,174)

(13,139)

(59,313)

Net income

17,848

17,848

5,140

22,988

Other comprehensive loss

(13,132)

(13,132)

(3,782)

(16,914)

Balance at March 31, 2020

37,905,933

$

374

$

516,133

$

(19,158)

$

(376,835)

$

120,514

$

43,934

$

164,448

Redemption of noncontrolling interests

4,620,000

46

25,105

(2,594)

22,557

(22,557)

Issuance of stock awards, net of forfeitures

(1,185)

Exercise of stock options

8,672

99

99

99

Share-based compensation

4,477

4,477

4,477

Dividends and distributions

(51,857)

(51,857)

(7,502)

(59,359)

Net income

20,671

20,671

4,417

25,088

Other comprehensive loss

(2,088)

(2,088)

(1,083)

(3,171)

Balance at June 30, 2020

42,533,420

$

420

$

545,814

$

(23,840)

$

(408,021)

$

114,373

$

17,209

$

131,582

Redemption of noncontrolling interests

230,172

2

822

(131)

693

(693)

Issuance of stock awards, net of forfeitures

(5,037)

Exercise of stock options

7,932

126

126

126

Share-based compensation

4,465

4,465

4,465

Dividends and distributions

(52,139)

(52,139)

(7,222)

(59,361)

Net income

21,132

21,132

3,000

24,132

Other comprehensive income

1,616

1,616

224

1,840

Balance at September 30, 2020

42,766,487

$

422

$

551,227

$

(22,355)

$

(439,028)

$

90,266

$

12,518

$

102,784

See accompanying notes to condensed consolidated financial statements.

6

Table of Contents

CORESITE REALTY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited and in thousands)

Nine Months Ended September 30,

  

2021

  

2020

 

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$

77,508

$

72,208

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

135,067

124,529

Amortization of above/below market leases

(112)

(102)

Amortization of deferred financing costs and hedge amortization

2,907

3,100

Share-based compensation

13,636

11,810

Bad debt expense (recovery)

(135)

890

Changes in operating assets and liabilities:

Accounts receivable

(5,841)

(11,271)

Deferred rent receivable

(4,109)

(1,252)

Initial direct costs

(10,963)

(13,517)

Other assets

(6,347)

(3,642)

Accounts payable and accrued expenses

(910)

8,195

Unearned revenue, prepaid rent and other liabilities

4,397

3,043

Operating leases

1,683

801

Net cash provided by operating activities

206,781

194,792

CASH FLOWS FROM INVESTING ACTIVITIES

Tenant improvements

(6,551)

(4,555)

Real estate improvements

(83,808)

(219,512)

Net cash used in investing activities

(90,359)

(224,067)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from exercise of stock options

110

298

Proceeds from revolving credit facility

196,500

201,000

Payments on revolving credit facility

(133,000)

(143,500)

Proceeds from unsecured debt

150,000

Payments of loan fees and costs

(53)

(1,108)

Dividends and distributions

(182,116)

(177,569)

Net cash (used in) provided by financing activities

(118,559)

29,121

Net change in cash and cash equivalents

(2,137)

(154)