GDS Holdings Limited Q3 FY2025 earnings call

William Huang mentioned that during the third quarter, revenue and adjusted EBITDA maintained a growth trend. The gross additional area utilized was around 23,000 square meters in 3Q '25, and the company is on track to achieve the highest annual move - in. It is delivering the long - term backlog including a 40,000 square meter order won in the first quarter. The first 9 months of 2025 had total new bookings of 75,000 square meters, and the company expects nearly 300 megawatts for the full year. Dan Newman noted that on a pro forma basis, the adjusted EBITDA for the first 9 months grew by 15.4%. The C - REIT started trading on the Shanghai Stock Exchange, with units priced at RMB 4.375, 45.8% up from the IPO price. The strategic objective is to grow and diversify the C - REIT. The organic CapEx for the full year is expected to be around RMB 4.8 billion, and the operating cash flow for the full year will be around RMB 2.5 billion. The net debt to last quarter annualized adjusted EBITDA multiple decreased from 6.8x at the end of 2024 to 6.0x at the end of 3Q '25, and the effective interest rate dropped to 3.3%.

During the third quarter, GDS' revenue increased by 10.2% year - on - year, and adjusted EBITDA increased by 11.4% year - on - year. In 3Q '25, the gross additional area utilized was around 23,000 square meters. For the first 9 months of 2025, the total new bookings were 75,000 square meters or 240 megawatts. The company expects to achieve nearly 300 megawatts of new bookings for the full year, and around 65% of the 2025 bookings are AI - related.

After 9 months, GDS is on track to achieve the midpoint of its revenue guidance and at or above the top end of its EBITDA guidance for the full year of 2025. The company expects to achieve nearly 300 megawatts of new bookings for the full year. It plans to prepare assets with a target enterprise value of around RMB 4 billion to RMB 6 billion for the first post - IPO asset injection, which is expected to happen in 2Q '26.

Forward - looking statements involve inherent risks and uncertainties. Further information regarding these and other risks and uncertainties is included in the company's prospectus as filed with the U.S. SEC. The company does not assume any obligation to update any forward - looking statements, except as required under applicable law.

Q: Regarding the China market inflection and the strategy to be more aggressive in China, William Huang and Dan Newman answered. William Huang talked about the strong demand in the China market, the large powered land bank in and around Tier 1 markets, and Dan Newman explained the unit economics of data center investment in China.

Q: Regarding whether bookings include newly acquired powered land in regions with relatively lower power tariffs and difficulties in acquiring new power quota, William Huang responded. He mentioned that new bookings next year are not fully reliant on new land acquisition and that although power quota acquisition is always difficult, GDS has a good relationship with the government and power companies.

Q: Update on DayOne's private round funding and potential IPO, and the outlook on customers ramping up GPU installs, William Huang answered. He said that DayOne is independent after Series B, its business in Asia Pacific and Europe remains positive, but he couldn't provide detailed information on DayOne's IPO.

Q: About the scale of training workload in China and the time to build data centers, William Huang and Dan Newman responded. William Huang said that the scale of training workload in China is catching up with the gigawatt level, and data centers in China can be built in 9 to 12 months normally.

Q: About AI exposure percentage and the impact of window guidance from the China government, Daniel Newman responded. He said around 65% of new bookings in 2025 are AI - related in Tier 1 markets, and window guidance about carbon quota has always been a situation in Tier 1 markets but GDS is well - prepared.

Q: About pricing trend and the competitive landscape, Daniel Newman and William Huang responded. Daniel Newman said that MSR is expected to decrease by 3% to 4% in 2026 due to downward price reset and elevated move - in. William Huang mentioned that the new competition focuses on financial capability as customers care more about the ability to access capital markets, and GDS has an advantage in this aspect