Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Investor Presentation (March 2025)
42 slides from Digital Realty Trust's investor presentation, March 2025
Slide 1: Global. Connected. Sustainable.
Global. Connected. Sustainable. INVESTOR PRESENTATION March 2025 The meeting place for companies, technologies and data
Slide 2: Business Update
Business Update I. Accelerating Growth II. Enhanced Visibility III. Strengthened P IV. Successful US l l l and Upside Potential kk Balance Sheet l l Hyperscale Fund p p p Launch 2
Slide 3: Positioned for Accelerating Growth
Positioned for Accelerating Growth Core FFO Growth Ramping in 2025 and Beyond 5.8%(1) Mid Single-Digit Growth Executing on Key Strategic Priorities 1.8% GROWTH 0-1MW + IX Category UNLOCKED Development Pipeline IMPROVED Pricing and MTM 2024 2025 2026+ Note: All projections based on management’s curre
Slide 4: Enhanced Visibility of Runway for Future Growth
Enhanced Visibility of Runway for Future Growth Record 0-1MW Bookings Offer Near Term Upside, as >1MW Leasing Boosts Backlog TOTAL ANNUAL BOOKINGS NEAR RECORD BACKLOG 0-1MW (Left y-axis) Interconnection (L) >1 MW (Right y-axis) Other(1) (R) ANNUALIZED GAAP BASE RENT COMMENCEMENT TIMING (2) $ in mill
Slide 5: Better Growth + Balance Sheet
Capital Structure(2) Better Growth + Balance Sheet Robust Liquidity, Below Target Leverage Equity Market Capitalization Floating Rate Debt 9% Fixed Rate Debt 21% Preferred 1% ₣ $61 Bn Variable Rate (1) Net Debt to Adjusted EBITDA Debt 2% Liquidity at the end Equity Fixed Rate Debt 76% of 2024 91% $6
Slide 6: Bolstered, Diversified…and Evolved
Bolstered, Diversified…and Evolved Significant Progress on First US Hyperscale Data Center Fund + Digital Realty launches US Hyperscale Data Center Fund targeting ~$2.5B of LP capital commitments Fund + Received subscriptions for commitments to date of > $800M from institutional investors + Digital
Slide 7: Digital Realty Overview
r Digital Realty Overview L.
Slide 8: A Global Data Center and Connectivity Platform Supporting our Customers’ Critical IT Architecture
A Global Data Center and Connectivity Platform Supporting our Customers’ Critical IT Architecture 5,000+ 227,000+ 50+ 300+ Customers (1) Cross Connects (1) Metros (1) Data Centers (1) EQUITY & ENTERPRISE VALUE TOP PUBLICLY TRADED U.S. REIT $61 Bn $78 Bn 4th 2016 EQUITY MARKET ENTERPRISE LARGEST ADDE
Slide 9: Global Platform Focused on Execution of Strategic Priorities
Global Platform Focused on Execution of Strategic Priorities 1 2 3 Strengthen our Innovate & Diversifying and As of December 31, 2024 Customer Value Integrate for our Bolstering Proposition Customers Capital Sources STRONG LEASING Executing Meeting Building new applications Partnering with sou
Slide 10: Offering a Global Data Center Platform
Offering a Global Data Center Platform Capacity in World’s Major Metros to Meet Growing Customer Demand Global Capacity ~2,700 MW Total In-Place IT Capacity 644 MW Under Construction Geographically Diversified (1) 5% 5% 10% North America Europe 53% APAC 27% Latin America Africa Note: As of December
Slide 11: Land Bank Available to Double IT Capacity
Land Bank Available to Double IT Capacity >3,500 MW Future Development Capacity = >100MWs of Buildable IT Capacity = >50MWs of Buildable IT Capacity = <25MWs of Buildable IT Capacity AMERICAS EMEA APAC TOTAL Existing Capacity 1,400 MWs 900 MWs 300 MWs 2,600 MWs Buildable Capacity 2,300 MWs 1,000 MWs
Slide 12: Digital Realty’s Competitive Advantage & Execution Strategy
Digital Realty’s Competitive Advantage & Execution Strategy Customer Relationships Connected Campus Approach Global Platform Connectivity Long-standing, deep and trusted partner Connected campus approach allows for Embedded internal expertise as the world’s Allows customers connectivity to cloud of
Slide 13: Leading Data Center Partner for Sustainability
Leading Data Center Partner for Sustainability Building, Powering, and Operating Better, More Sustainable Data Centers Renewable Energy Green Buildings Resource Efficiency Green Bonds Leading data center purchaser of More green building certified IT capacity More energy star certifications than any
Slide 14: Strong Secular Trends
Strong Secular Trends Artificial Intelligence Driving Next-Generation Demand 14
Slide 15: Multiple Secular Demand Drivers
Multiple Secular Demand Drivers Global Demand Across the Product Spectrum Artificial Intelligence Cloud Enterprise Digital Transformation Initial Scale Demand for Training, Hybrid IT – Combination of Scale & Connectivity Characteristics followed by Lower-Latency Demand Growing Globally Privately Man
Slide 16: Global Data Center Demand and Supply
Global Data Center Demand and Supply Robust Data Center Demand and Limited In-Footprint Supply Leading to Declining Vacancy Rates ESTIMATED GLOBAL DATA CENTER CAPACTY DEMAND (1) DECLINING GLOBAL DATA CENTER VACANCY (2) GLOBAL CAPACITY DEMAND GLOBAL ABSORPTION AND VACANCY in GW in MW Chart Title 250
Slide 17: The PlatformDIGITAL Competitive Advantage
The PlatformDIGITAL® Competitive Advantage PlatformDIGITAL® Seeks to Generate Greater Customer Demand, Driving Significant Returns via a Differentiated Product Offering Hyperscale Enterprise / Colo Data Centers Data Centers Hyperscalers deploy cloud Enterprises can connect to the on-ramps which allo
Slide 18: AI Platform Readiness
AI Platform Readiness As power-dense workloads grow, Digital Realty’s modular designs can accommodate advanced cooling solutions (1) Average Rack Density Increase and % of Racks above 30 kW Cooling Technology by Threshold of Rack Densities Enterprise & Enterprise & Colocation + AI / HPC / Hyperscale
Slide 19: Global Connectivity Hubs
Global Connectivity Hubs Network Density that Promotes Innovation and Collaboration 28+ METROS 227K+ CROSS-CONNECTS Globally Where Our GLOBALLY Internet Gateways Are Located 50+ 4,000+ ASSETS NETWORK INSTANCES With Over 1,000 GLOBALLY Cross-Connects Each Note: As of December 31, 2024. 19
Slide 20: The ServiceFabric Differentiating Factor
The ServiceFabricTM Differentiating Factor ServiceFabric Seeks to Allow the Customer to Establish Numerous, Seamless Virtual Private Connections BUILDING SERVICEFABRIC CONNECTIONS SERVICEFABRIC AT A GLANCE 150+ 375+ 38 Digital Realty Facilities 3rd Party Enabled Metros Globally Connected Globally Da
Slide 21: Private Interconnections Enable Enterprise AI Applications
Private Interconnections Enable Enterprise AI Applications Private AI Exchange Powered by ServiceFabric helps enterprises alleviate data gravity barriers FUTURE-PROOFED ORCHESTRATION HD Colo accelerates 150 kW/rack ServiceFabric enables intelligent AI deployments in 34 markets across the global work
Slide 22: Recent Financial Results
Recent Financial Results Note: Certain data in this section was originally posted to the Company’s website on February 13, 2025 and has not been updated to reflect changes occurring after that date. 22
Slide 23: Executing on Key Strategic Priorities
Executing on Key Strategic Priorities Positioned for Long-Term Sustainable Growth 5,000+ 227,000+ Diversify and Customers Cross Connects Strengthen Our Innovate & Integrate 1 2 3 Bolster Capital Customer Value For Our Customers 50+ 300+ Proposition Sources Metros Data Centers >$1Bn $2Bn Raised Throu
Slide 24: 4Q24 Bookings
HISTORICAL BOOKINGS 4Q24 Bookings ANNUALIZED GAAP BASE RENT $ in millions $500 $375 • Record $76M Bookings in 4Q24 for 0-1MW + IX $250 • Record >$1B Bookings in Full Year 2024 $125 $0 2020 2021 2022 2023 2024 4Q24 BOOKINGS 0-1 MW INTERCONNECTION >1 MW OTHER(1) TOTAL BOOKINGS $61.9 M $14.6 M $22.6 M
Slide 25: Connected Data Communities
Connected Data Communities Record 0-1MW + Interconnection Bookings and New Logos 4Q24 Results 2024 Full-Year Results 166 591 new logos new logos $76M $249M total 4Q bookings from total 2024 bookings from 0-1 MW + Interconnection 0-1 MW + Interconnection 77% 22% of total 4Q bookings from y/y increase
Slide 26: Strong Pricing Environment
Strong Pricing Environment 4Q24 RENEWAL SPREADS Healthy Renewal 0-1 MW > 1 MW OTHER (1) TOTAL Spreads RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE • 9.0% Full Year Cash 4.9% 3.7% 35.8% 4.7% Renewal Spreads CASH CASH CASH CASH 5.5% 14.6% 40.4% 9.1% • 5.2% Full Year Cash
Slide 27: Lease Expirations Provide Re-Pricing Opportunities
Lease Expirations % of Lease Expirations by Annualized Base Rent (1) Provide Re-Pricing Opportunities 30% >1 MW 0-1 MW Other 4% – 6% • Shorter term 0-1 MW 25% 2025 Guidance(2) for leases provide near cash rental rate on renewals term opportunities to 20% drive price increases 15% • Evenly staggered,
Slide 28: Strong Backlog
Strong Backlog BACKLOG ROLL-FORWARD (1) $ in millions COMMENCEMENT TIMING (3) $ in millions Bodes Well for Visibility and Future Growth $859M $85M $147M $70M $132M $797M $100M $797M $305M $96M • Robust Backlog of $797M $279M $392M • ~50% to Commence in $760M $697M $697M 2025 $322M (2) 3Q24 Backlog S
Slide 29: High-Quality, Diversified Customer Base
High-Quality, TOP 20 CUSTOMERS Diversified Customer Base Customer Rank Locations % of Customer Rank Locations % of ARR (1) ARR (1) • Top customers have a 1. Fortune 50 Software Company 73 11.5% 11. Specialized Cloud Provider 2 1.4% presence in 41 different 2. 39 6.4% 12. 130 1.3% locations, on avera
Slide 30: Proven Track Record of Sustainable Growth
Proven Track Record of Sustainable Growth Disciplined Financial Management YE2018 YE2024 Better/ Worse Change Properties / Data Centers (1) 214 308 44% Metro Areas (1) 35 metro areas 57 metro areas 63% SIZE & DIVERSIFICATION Total Enterprise Value (2) $35 Bn $78 Bn 123% LTM Bookings $268 Mn $1
Slide 31: 2025 Financial Guidance
2025 Financial Guidance Improving Core Growth (1) Actual 2024 Full Year 2025 Total Revenue $5,554 $5,800 – $5,900 Adjusted EBITDA $2,947 $3,100 – $3,200 Rental Rates on Renewals Leases (Cash) 9.0% 4.0% – 6.0% Year-End Portfolio Occupancy 84.1% +100 – 200 bps (2) Same-Capital Cash NOI Growth 2.6% 3.5
Slide 32: Appendix
Presenter Name 15/09/22 Appendix
Slide 33: Management Statements on Non-GAAP Measures
Appendix Management Statements on Non-GAAP Measures The information included in this presentation contains certain non-GAAP financial measures that management believes are helpful in understanding our business, as further described below. Our definition and calculation of non-GAAP financial measures
Slide 34: Forward-Looking Statements
Appendix Forward-Looking Statements This information in this presentation contains forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes an
Slide 35: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent 35
Slide 36: Reconciliation of FFO to Core FFO
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Funds From Operations (FFO) to Core Funds From Operations (CFFO) (in thousands, except per share and unit data) (unaudited) Three Months Ended Twelve Months Ended December
Slide 37: Reconciliation of Net Income to FFO
Reconciliation of Non-GAAP Items Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Net Income Available to Common Stockholders to Funds From Operations (FFO) (in thousands, except per share and unit data) (unaudited) To Their Closest GAAP Three Months Ended Twelve Months Ended Equivalent
Slide 38: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Net Income Available to Common Stockholders to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA (in thousands) (unaudited) Three
Slide 39: Reconciliation of Same Capital Cash NOI
Reconciliation of Non-GAAP Items To Their Closest GAAP Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Same Capital Cash Net Operating Income (in thousands) Equivalent (unaudited) Three Months Ended Twelve Months Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31,
Slide 40: Reconciliation of Non-GAAP Items (QE 03/31/23)
Total Debt/Total Enterprise Value QE 03/31/23 Debt Service Ratio (LQA Adjusted EBITDA/GAAP interest expense plus capitalized interest and less bridge Reconciliation of Market value of common equity(i) $ 29,272,861 facility fees) Liquidation value of preferred equity(ii) 755,000 Total GAAP interest e
Slide 41: Reconciliation of Non-GAAP Items (QE 12/31/24)
Total Debt/Total Enterprise Value QE 12/31/24 Debt Service Ratio (LQA Adjusted EBITDA/GAAP interest expense plus capitalized interest and less bridge facility Reconciliation of Market value of common equity(i) $ 60,783,759 fees) Liquidation value of preferred equity(ii) 755,000 Total GAAP interest e
Slide 42: Thank you
r Thank you FN DIGITAL Lv REALTY.
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