GDS Holdings Limited Q2 FY2025 earnings call

• Delivered solid second quarter with revenue up 12.4% and adjusted EBITDA up 11.2% YoY.
• Raised USD 676 million through convertible bonds and equity, strengthening holdco balance sheet.
• Achieved C-REIT IPO milestone, units trading on Shanghai Stock Exchange with implied cap rates below 5%.
• Gross move-in in 2Q '25 was around 20,000 square meters, utilization rate at 77.5%.
• DayOne added 246 megawatts of new commitments, with total power committed over 780 megawatts.
• Completed first data center ABS and C-REIT IPO in China, proving ability to recycle capital from stabilized assets.

In the second quarter, GDS Holdings Limited delivered a solid performance with revenue growing by 12.4% year-on-year and adjusted EBITDA by 11.2% year-on-year. The company raised net proceeds of USD 676 million through convertible bonds and equity in the international capital market. The C-REIT IPO was a significant milestone, with units trading on the Shanghai Stock Exchange. DayOne added 246 megawatts of new commitments, bringing total power committed by customers to over 780 megawatts.

• Maintained FY '25 revenue and adjusted EBITDA guidance unchanged despite asset deconsolidation.
• CapEx guidance adjusted to deduct C-REIT cash proceeds.
• DayOne targets 1 gigawatt of total power commitments within 3 years, currently well ahead of schedule.

• Forward-looking statements involve inherent risks with results possibly differing from views expressed.
• Asset monetization depends on market conditions and regulatory compliance.
• Uncertainty in chip supply affecting AI demand for the business.

Q: About future strategy in asset monetization in China A: Daniel Newman discusses accretive asset monetization and approaching net debt to EBITDA target Q: DayOne's new target A: Wei Huang mentions targeting at least 500 megawatts per year Q: Customer profile and workload A: Wei Huang says mix of traditional Internet, cloud, with both GPU and CPU workloads Q: MSR trend A: Daniel Newman talks about MSR decline due to location mix and contract resets Q: DayOne's Series C and IPO A: Daniel Newman talks about Series C and Europe presence in Finland Q: DayOne's customer split A: Wei Huang mentions current split is around 30-70 international to Chinese customers Q: Guidance and delivery schedule A: Daniel Newman talks about back-end loaded delivery and growth expectations Q: AI orders and chip supply A: Daniel Newman discusses chip supply uncertainty and the company's preparation for AI demand