KBRA Assigns Preliminary Ratings to Centersquare Series 2025-1 and Series 2025-2

KBRA assigns preliminary ratings to three classes of notes (the Series 2025-1/2 Notes) from Centersquare Issuer LLC and Centersquare Co-Issuer LLC Series 2025-1 and Series 2025-2 (Series 2025-1/2), a colocation data center ABS transaction. The transaction represents the second ABS issuance issued by Centersquare Issuer LLC and Centersquare Co Issuer LLC (the Co-Issuers). KBRA’s rating analysis incorporates all prior debt issuance of the Co-Issuers. KBRA anticipates affirming the ratings of the Series 2024-1/2 Notes with the issuance of the Series 2025-1/2 Notes.

The Series 2025-1/2 Notes are secured by 26 data centers generating approximately $438.8 million of Total Annualized Monthly Recurring Revenue (AMRR) and approximately $208.9 million of Annualized Adjusted Net Operating Income (AANOI) as of December 31, 2024 (the Statistical Disclosure Date). This includes the fee simple ownership interests in 10 multi-customer enterprise data centers (43.6% of AMRR or 57.4% of AANOI) located in eight markets and leasehold interests in 16 multi-customer enterprise data centers (56.4% of AMRR or 42.6% of AANOI) located in 12 markets. The 26 data centers are comprised of approximately 1,168,428 square feet (sf) of data center space and can provide approximately 150.0 megawatts (MW) of critical load power to customers.

The data center colocation customers use the data center space for power, space, and cooling of their data center equipment, cloud services, business continuity and other professional services. As of the Statistical Disclosure Date, the portfolio is comprised of 1,081 unique customers, pursuant to separate customer contracts with a weighted average remaining contract term, including one auto renewal option, of 3.9 years. The largest customer accounts for 8.0% of AMRR while the top 20 customers account for approximately 39.7% of AMRR. The portfolio of customers operate in 15 unique industries. The top three industries include cloud and IT services (44.2% of AMRR), banking and securities (14.1%), and network service providers (12.8%).

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Methodologies

• CMBS: North American CMBS Single Borrower & Large Loan Rating Methodology
• CMBS: North American CMBS Property Evaluation Methodology
• ABS: General Global Rating Methodology for Asset Backed Securities
• Structured Finance: Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1008370

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