EFTA01388613.pdf

18 October 2016 REITs US REIT 3016 Earnings Preview CONE 3015 2016 3016 2016 toccata itatamsnt (So Mara eacestfaysaates Actual Actual Actual rte. Cons Pra 30 On Post 30 On DR. Con GAAP Revenue 5111 2 $1301 $1W 6 5136 I $520. 5530 5525 2 5526 7 Actusted EBITDA 569 0 569 4 571 2 S69 3 5270. 5280 $275 3 52750 Agusted EBITDA margin 53 1% 53 3% 521% 51 0% 524% 522% FR)/sh rxernshzed S057 $067 $064 5062 52.50- 52 58 $2 56 5256 Operating Metrics (iaCala Ogled pee shape) Actual Actual ANS DM Po 30 GIS Post 30 Gait DON GNAT' rent annueleed iSrnm1 51211 557 19 MW signed 48 40 0 RenV1CW/Month 521083 $119 15 Quarterly churn rate 07% 2 7% 2 5% Note consensus estimates are based on Thomson compled date as of 10/14/16 • Expectations are elevated fol owing 3 back-to-back quarters of strong leasing. Update on the size of the leasing pipeline • Recent changes in conversations with enterprise and public cloud players • Pricing, yield and construction cost trends • Fundamentals in key markets, specifically in NOVA Houston. Dallas, and Phoenix • Construction plans in the Pacific Northwest and NOVA following land purchases. CONE recently acquired 29 acres in the Phoenix metro while highlighting Santa Clara as an area of focus • Leasing activity at the CME property in Chicago • Expansion plans in 2016 for new markets, and potential for additional acquisitions • Impact from weakness in the energy industry on CONE's oil and gas tenants • We are updating estimates to reflect our expectation of an earlier exercise of the forward equity sales offering in 2017 and a modest reduction in rent commencements in 2017. Our 2016 estimates are unchanged. For 2017, our core FFO/sh estimate moves to $2.95 from $3.01, NAREIT FFO moves to $2.71 from $2.77, FAD moves to $2.90 from $2.97, and EBITDA moves to $337.7MM from $345.8MM. Please see Figure 98 for a summary of our estimate revisions • We are lowering our target price to $59 from $60 as a result of our estimate revisions. Our target multiple are unchanged (17.4x EBITDA and 19.1x FAD). Please see Figure 97 for details on our target price Sara Danci* an comearry dam. Mormon Page 44 Deutsche Bank Securities Inc. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0092264 CONFIDENTIAL SDNY_GM_00238448 EFTA01388613