NEW YORK (TheStreet) -- Shares of CyrusOne (CONE) - Get Report were falling 2.9% to $31.59 after-hours Monday after the REIT announced a new public offering of common stock.

CyrusOne announced it will offer 12.2 million shares of common stock in the public offering. The underwriters of the offering will have a 30-day option to purchase 1.83 million additional shares of common stock at the unannounced offering price.

All shares in the offering will be offered by CyrusOne.

The company said it plans to use the proceeds from the public offering to purchase limited partnership interests in its CyprusOne LP operating partnership from Cincinnati Bell (CBB) - Get Report subsidiaries. The company will purchase one common unit in the partnership for each share sold in the offering.

Cincinnati Bell will own about 24.8% of CyrusOne following the offering, or about 22% if the underwriters exercise their option in full.

CyrusOne is a owner, operator and developer of enterprise-class, carrier-neutral data center properties

TheStreet Ratings team rates CYRUSONE INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate CYRUSONE INC (CONE) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and poor profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• The revenue growth came in higher than the industry average of 10.1%. Since the same quarter one year prior, revenues rose by 20.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
• Compared to its closing price of one year ago, CONE's share price has jumped by 46.95%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
• CYRUSONE INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CYRUSONE INC continued to lose money by earning -$0.25 versus -$1.32 in the prior year. This year, the market expects an improvement in earnings ($0.16 versus -$0.25).
• The gross profit margin for CYRUSONE INC is rather low; currently it is at 16.46%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -8.05% is significantly below that of the industry average.
• The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 438.5% when compared to the same quarter one year ago, falling from -$1.30 million to -$7.00 million.
• You can view the full analysis from the report here: CONE Ratings Report