Equinix commences investigation into short-seller Hindenburg's report
Hindenburg in its report alleged that Equinix, which operates as a real estate investment trust, was using an accounting trick to boost its adjusted funds from operations — a profitability metric for REITs.
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PARIS: Data center firm Equinix (EQIX.O), said on Monday its audit committee has commenced an independent investigation into the allegations made by short-seller Hindenburg Research in its report last week.
Hindenburg in its report alleged that Equinix, which operates as a real estate investment trust, was using an accounting trick to boost its adjusted funds from operations — a profitability metric for REITs.
The short-seller had also said in its report that Equinix was misclassifying its capital expenditure necessary for continuing operations as spending that it would use to expand its operations, making the company appear more profitable.
"We take seriously our obligations of transparency and accuracy in our financial reporting. We believe we have earned the trust of our investors — and all our stakeholders — by reliably delivering on our commitments with integrity," Equinix said in a statement on Monday.
Shortly after the report was released, Equinix said it received a subpoena from the US Attorney's Office. The company said it "intends to fully cooperate in this matter" and does not expect to comment further until it deems appropriate to do so.