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CAPEX under way comes amidst a Q3 that delivered a revenue increase of 10% over the same quarter last year to $1.675 billion.
Founder and Editor, The Tech Capital
November 08, 2021 | 6:00 AM GMT
US data centre real estate investment trust (REIT) Equinix (NASDAQ: EQIX) said it is currently undertaking US$1.51 billion investments to expand its footprint across 16 countries covering 23 major metros.
The largest expansion slice resides in the EMEA region, where $823 million are being deployed.
This includes projects in London, Paris, Milan, Frankfurt, Muscat, Genoa, Istanbul, Munich, Warsaw Geneva, Zurich, Madrid, Manchester and Milan. A total of 13,500 cabinets are being added across these locations.
Over in Asia, Equinix is currently spending $513 million to expand its capacity by 9,700 cabinets in Hong Kong Shanghai, Singapore, Sydney Osaka Perth, Tokyo and Melbourne.
Elsewhere, the remainder of CAPEX is being diverted into the Americas region where $174 million are being used to deploy 3,750 cabinets in New York, Washington DC, Mexico City and Bogota.
You can find a detailed list of all the expansions, including CAPEX, cabinets, location, facility ownership system as well opening dates towards the end of this article.
Equinix’s footprint at the end of Q3 2021 included a portfolio of 237 facilities across 65 metro areas and 27 countries. AS many as 118 centres are fully owned by the operator.
Combined the sites cover 27.7 million gross square feet where 17.4 million represent owned space.
Africa is currently the only missing continent in Equinix’s portfolio.
Q3 results snapshot
During the third quarter of the year, Equinix amassed sales in the value of $1.675 billion, a 1% increase over the previous quarter and a 10% increase on Q3 2020. This was the company’s 75th consecutive quarter of revenue growth.
Operating income was $282 million, a 1% increase over the previous quarter and an operating margin of 17%.
EBITDA topped $786 million, a 47% adjusted EBITDA margin, and includes a $3 million negative foreign currency impact when compared to prior guidance rates, as well as $3 million of integration costs.
Net income witnessed a considerable growth to $152 million, a 123% increase over the previous quarter, primarily due to lower debt redemption costs and operating performance. Net income per share was $1.68, a 121% increase over the previous quarter.
Charles Meyers, President and CEO, Equinix, said: “The pandemic has triggered an accelerated need to digitise business models in virtually every segment of the economy, and our strong Q3 results are reflective of this increasing demand for digital services.
“As the world’s digital infrastructure company, Equinix remains uniquely positioned to help businesses as they shift towards distributed, hybrid and multicloud as the clear architecture of choice.”
For the fourth quarter of 2021, the company expects revenues to range between $1.685 and $1.705 billion, an increase of 1 – 2% compared to the prior quarter on both an as-reported and a normalized and constant currency basis.
Adjusted EBITDA is expected to range between $762 and $782 million whilst recurring capital expenditures are expected to range between $75 and $85 million.
For the full year of 2021, total revenues are expected to range between $6.614 and $6.634 billion, a 10 – 11% increase over the previous year, or a normalised and constant currency increase of approximately 8%.
This updated full year guidance includes an incremental $5 million from the GPX India acquisition, offset by a negative foreign currency impact of $20 million when compared to the prior guidance rates.
Adjusted EBITDA is expected to range between $3.119 and $3.139 billion, an adjusted EBITDA margin of 47%.
AFFO is expected to range between $2.444 and $2.464 billion, an increase of 12 – 13% over the previous year, or a normalized and constant currency increase of 10 – 11%. AFFO per share is expected to range between $27.03 and $27.25, an increase of 9 – 10% over the previous year, both as-reported and on a normalised and constant currency basis.
Total capital expenditures are expected to range between $2.738 and $2.988 billion. Non-recurring capital expenditures, including xScale-related costs, are expected to range between $2.550 and $2.790 billion, and recurring capital expenditures are expected to range between $188 and $198 million.
xScale-related on-balance sheet capital expenditures are expected to range between $425 and $475 million, which we anticipate will be reimbursed from both the current and future xScale JVs.
Below is a detailed summary of the expansions currently being carried out by Equinix across three continents. The graphs show the financial performance of each region during Q3 2021.
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