Today we announced our financial results for the full year ended 30 June 2019 (“FY19”).
FY19 financial highlights
During the year, the Company raised $500 million of senior unsecured debt and refinanced its $300 million syndicated senior secured debt facility, which remains undrawn.
The Company completed the acquisition of the land and buildings at P1, M1, S1 as well as B1. This delivered rental savings of approximately $15 million per annum (before annual escalations), strengthened NEXTDC’s balance sheet and provided control of the underlying properties.
NEXTDC Chief Executive Officer and Managing Director, Craig Scroggie, commented on the FY19 results:
“We are pleased to report another year of record revenue and EBITDA, demonstrating the inherent operating leverage of the business. These results were achieved during a period of record investment in our next generation of world-class Tier IV data centres. With more than $700 million in liquidity, the Company is well positioned to take advantage of customer driven expansion opportunities”.
Business performance
As at 30 June 2019:
Commenting on the Company’s sales performance, Mr Scroggie said: “NEXTDC continues to experience strong demand for its premium data centre services, with the Company achieving its biggest sales year to date as well as continued robust growth in customer and interconnection numbers”.
FY19 development activities
S2 development update
S2 opened for early customer access during 1H19 and received Uptime Institute Tier IV design certification. The delivery of additional capacity was delayed to August 2019 due to the complexity of managing a multi-storey development at a fully operational site, whilst ensuring our safety and operational standards are met. Demand for S2 remains strong and contracted utilisation has increased to more than 16MW.
Commenting on the S2 development, Mr Scroggie said:
“S2 is a ground-breaking project. New innovations in design and engineering unveiled at S2 have established a new benchmark in excellence that represents an extraordinary leap forward in development methodology. The lessons learnt and expertise gained throughout this process are already being applied to our third generation facilities and beyond”.
Singapore market review
During FY19, the Company established its first office in Singapore to explore the local market. Work in Singapore is currently on hold while the Singapore Government undertakes a review of the data centre industry. Pending the outcome of this review, NEXTDC may continue to evaluate opportunities in Singapore, noting that there can be no assurances as to the timing or nature of any development.
Japan market review
During FY19, NEXTDC also established an office in Tokyo to explore the Japanese market. The Company continues to evaluate opportunities in Japan and similarly there are no assurances as to the timing or nature of any development.
FY20 guidance
Based on current utilisation levels, expected new customer contracts and forecast delivery dates of additional capacity at S2, NEXTDC provides the following guidance: