QTS Issues Statement in Response to Land and Buildings
Feb 22, 2018
OVERLAND PARK, Kan., Feb. 22, 2018 /PRNewswire/ -- QTS Realty Trust, Inc. (NYSE: QTS) today issued the following statement in response to a letter it received from Land and Buildings Investment Management LLC ("Land and Buildings"):
QTS is open to and appreciates input from its shareholders. The QTS Board of Directors and management team are focused on delivering substantial near-term and long-term value creation and will continue to take actions to advance this objective.
In conjunction with the Company's fourth quarter 2017 earnings release, QTS announced a strategic plan to increase shareholder value. The plan is expected to improve QTS' financial performance by focusing on the areas of the business where the Company is seeing strong demand, specifically in Hyperscale and Hybrid-Enabled Colocation. In addition, QTS is simplifying its business model and increasing operating efficiency by reducing its focus on non-core products and services within the C3 – Cloud and Managed Services vertical. Finally, the plan incorporates significant cost reductions to rapidly increase EBITDA margin.
Under this plan, QTS expects to accelerate leasing and revenue growth with a target of mid-teens growth in 2019 and 2020, increase predictability with a focus on more stable customers and core products, and enhance profitability with a targeted 600+ basis point improvement to Adjusted EBITDA margin by the end of 2018.
Through continued efficient capital allocation and execution of our strategy, we expect to deliver disciplined growth and sustainable value to shareholders. We look forward to continuing to engage with our shareholders to advance our common goal of further enhancing value.
QTS Realty Trust, Inc. (NYSE: QTS) is a leading provider of data center solutions across a diverse footprint spanning more than 6 million square feet of owned mega scale data center space throughout North America. Through its software-defined technology platform, QTS is able to deliver secure, compliant infrastructure solutions, robust connectivity and premium customer service to more than 1,100 leading hyperscale technology companies, enterprises, and government entities. Visit QTS at www.qtsdatacenters.com, call toll-free 877.QTS.DATA or follow on Twitter @DataCenters_QTS.
Cautionary Note Regarding Forward-Looking Statements
Some of the statements contained in this press release constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In particular, statements pertaining to the Company's capital resources, portfolio performance, results of operations, anticipated growth in our funds from operations and anticipated market conditions contain forward-looking statements. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You also can identify forward-looking statements by discussions of strategy, plans or intentions.
The forward-looking statements contained in this press release reflect the Company's current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause the Company's actual results to differ significantly from those expressed in any forward-looking statement. The Company does not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: adverse economic or real estate developments in our markets or the technology industry; obsolescence or reduction in marketability of our infrastructure due to changing industry demands; global, national and local economic conditions; risks related to our international operations; difficulties in identifying properties to acquire and completing acquisitions; our failure to successfully develop, redevelop and operate acquired properties or lines of business; significant increases in construction and development costs; the increasingly competitive environment in which we operate; defaults on, or termination or non-renewal of, leases by customers; decreased rental rates or increased vacancy rates; increased interest rates and operating costs, including increased energy costs; financing risks, including our failure to obtain necessary outside financing; dependence on third parties to provide Internet, telecommunications and network connectivity to our data centers; our failure to qualify and maintain QTS' qualification as a real estate investment trust; environmental uncertainties and risks related to natural disasters; financial market fluctuations; and changes in real estate and zoning laws, revaluations for tax purposes and increases in real property tax rates.
While forward-looking statements reflect the Company's good faith beliefs, they are not guarantees of future performance. The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company's future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 and other periodic reports the Company files with the Securities and Exchange Commission.
Investor Relations Contact:
Carter B. Cromley
Andrew Siegel / Jon Keehner
Joele Frank, Wilkinson Brimmer Katcher
SOURCE QTS Realty Trust, Inc.