Cencora, Inc.

Greetings and welcome to the CoreSite Realty's fourth quarter 2020 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your investor relations host, Kate Ruppe. Please go ahead.

Thank you. Good morning and welcome to CoreSite's fourth quarter 2020 earnings conference call. I'm joined today by Paul Zurich, President and CEO, Steve Smith, Chief Revenue Officer, and Jeff Finnan, Chief Financial Officer. Before we begin, I would like to remind everyone that our remarks on today's call may include forward-looking statements as defined by federal securities laws, including statements addressing projections, plans, or future expectations. These statements are subject to a number of risks and uncertainties that could cause actual results or facts to differ materially from such statements for a variety of reasons. We assume no obligation to update these forward-looking statements and can give no assurance that the expectations will be obtained. Detailed information about these risks is included in our filings with the SEC. Also, on this conference call, we refer to certain non-GAAP financial measures such as funds from operations. Reconciliations of these non-GAAP financial measures are available in the supplemental information that is part of our full earnings release, which can be found on the investor relations pages of our website at CoreSite.com. With that, I'll turn the call over to Paul.

Good morning, and thank you for joining us for our fourth quarter earnings call. Today, I will cover our 2020 highlights and discuss our 2021 priorities. I'll be followed by Steve and Jeff's more in-depth discussion of sales and financial matters. Our 2020 highlights include new and expansion sales of $37.6 million of annualized gap rent, which marks a record year for retail and small-scale leasing. Operating revenues of $606.8 million, representing 6% year-over-year growth. FFO per share of $5.31, representing a year-over-year increase of 21 cents per share, or 4.1%. Delivery of 192,000 net rentable square feet, or 22 megawatts of total new capacity, including the opening of two new data centers, and seven nines of power and cooling up time. These achievements enabled us to execute on our 2020 goals of developing more capacity and completing projects on time, translating new and vacant capacity into sales, attracting quality new logos that value our campus ecosystems, thoughtfully expanding our products to assist enterprises with their hybrid and multi-cloud needs, and maintaining high levels of facility performance and customer service. Overall, I am pleased with the team's ability to successfully execute these priorities amidst the backdrop of the global pandemic. We delivered SVA Phase 3, NY2 Phase 3, and the first phases of new data centers at CH2 and LA3. As a result, we finished 2020 with 40 megawatts of available capacity to sell, compared to 23 megawatts at the end of 2019. Examples of translating new capacity into higher sales included leasing 75% of SVA Phase 3 and 80% of LA3 Phase 1, and accelerating leasing in Northern Virginia, our best year in terms of annualized gap rent in that market since 2015. While sales cycles for enterprises were elongated, probably due to the economic and other uncertainties related to the virus, we continued to attract high-quality new logos, especially in the financial services industry at NY2. We also expanded our connectivity options during the year. including adding Google Partner Interconnect and Oracle Cloud Infrastructure to the CoreSight Open Cloud Exchange, increasing bandwidth for AWS hosted connections on the CoreSight Open Cloud Exchange at our Chicago campus, adding multi-market peering to our enhanced NE2 Exchange, and as recently announced, adding access to Google Cloud using dedicated interconnect in Northern Virginia. In addition to these 2020 accomplishments, As we announced earlier this week, we appointed a new director to our board, Mr. Michael Milligan. Mike brings us valuable telecommunications experience as well as noteworthy board experience, which will be a tremendous asset to CoreSite as we continue our pattern of expanding our talent pool through increasing diversity. I also want to thank Jim Atwood and David Thompson for their board service over the last 10 years. They have both served since the company's IPO in September 2010, and their contributions were many. Jim and David will continue to serve until our annual meeting in May, but as part of our periodic board rotation, will voluntarily not seek reelection this year. We are very grateful for the service they have provided to CoreSite, its shareholders, and its employees and customers, and wish them the best in their future endeavors. As we move forward to 2021, our goals are similar to our 2020 goals as we build on last year's successes. Our ability to meet those goals is enhanced by greater available capacity to sell and the strong enterprise funnel that has been building up due to elongated sales cycles we saw for the enterprise vertical in 2020. One notable difference is that while we will continue being proactive for future developments, We do not need and do not have any new ground-up data centers planned to come online in 2021. In closing, we are excited about the opportunities that lie ahead for us, and we believe our priorities and our other operating objectives will continue to drive long-term value to our customers, employees, and shareholders. With that, I will turn the call over to Steve.