Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q1 2022 Earnings Presentation
26 slides from Digital Realty Trust's earnings presentation, Apr 28, 2022
Slide 1: 1Q22 Financial Results
Global. Connected. Sustainable. 1Q22 FINANCIAL RESULTS April 2022 Digital Realty the trusted foundation | powering your digital ambitions
Slide 2: Navigating the Future
Navigating the Future Sustainable Growth for Customers, Shareholders and Employees GLOBAL CONNECTED SUSTAINABLE Selling GLOBALLY… Supporting LOCALLY AMERICAS EMEA APAC DIGITAL REALTY | 1Q22 FINANCIAL RESULTS | APRIL 28, 2022 | 2
Slide 3: Serving a Social Purpose
Serving a Social Purpose Delivering Sustainable Growth for All Stakeholders ENVIRONMENTAL SOCIAL GOVERNANCE Formalized ESG oversight Ranked in Top 100 of Funded philanthropic organizations to under the Nominating & America’s Most Just support Ukrainian refugees, those Corporate Governance Companies
Slide 4: Expanding Global Platform Supporting Customer Growth
Barcelona Johannesburg Expanding Global Platform Supporting Customer Growth Paris Seoul Zurich Global Platform 180,000+ 4,000+ 50 Cross-Connects Customers Metro Areas Note: As of March 31, 2022. DIGITAL REALTY | 1Q22 FINANCIAL RESULTS | APRIL 28, 2022 | 4
Slide 5: Data Gravity Driving Data Center Demand
Data Gravity Driving Data Center Demand Seoul PlatformDIGITAL® Poised to Capitalize Data Gravity CAGR (1) Frankfurt 152% Data Gravity CAGR (1) New York 144% Data Gravity CAGR (1) 132% Singapore Zurich Data Gravity Data Gravity CAGR (1) London CAGR (1) 200% Data Gravity 135% Mumbai CAGR (1) Data Grav
Slide 6: Financial Results
Financial Results DIGITAL REALTY | 1Q22 FINANCIAL RESULTS | APRIL 28, 2022 | 6
Slide 7: Digital Transformation Driving Steady Demand
Digital Transformation Driving Steady Demand Global Full-Product Spectrum Provides Broadest Solutions HISTORICAL BOOKINGS ANNUALIZED GAAP BASE RENT $ in millions $150 $100 $50 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1Q22 BOOKINGS 0-1 MW > 1 MW OTHER (1) INTERCONNECTION TOTAL B
Slide 8: Attracting New Logos
Consumer Connectivity Connected Data Communities Financial Services Platform Attracting New Logos 128 new logos Cloud Platform Suburban Leading Desktop Services Municipality Applications $50 million total 1Q bookings from 0-1 MW + Interconnection Reinsurance Advertising Provider Platform 47% of 0-1
Slide 9: Top-Line Step Function: Healthy Backlog
Top-Line Step Function Healthy Backlog Sets Solid Foundation BACKLOG ROLL-FORWARD (1) COMMENCEMENT TIMING (2) $ in millions $ in millions Digital Realty Backlog Unconsolidated Joint Venture Backlog Digital Realty Backlog Unconsolidated Joint Venture Backlog $13M $4M $16M $94M $50M $5M $143M $41M $95
Slide 10: Healthier Pricing Environment
Healthier Pricing Environment Positive Re-Leasing Spreads Across Product Types and Regions 1Q22 RE-LEASING SPREADS 0-1 MW > 1 MW OTHER (1) TOTAL RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE 2.6% 5.9% 3.4% 3.3% CASH CASH CASH CASH 3.2% 9.2% 18.8% 6.1% GAAP GAAP GAAP GAA
Slide 11: Constant-Currency Growth
Constant-Currency Growth Double-Digit Top-Line Growth Excluding FX As Reported Constant-Currency 9.8% 10.3% 7.4% 7.3% 7.2% 5.7% 4.9% 3.4% (0.9%) (3.1%) FY22E / FY21 1Q22 / 1Q21 1Q22 / 1Q21 Stabilized FY22E / FY21 Core FFO per Share Revenue Growth (1) Cash NOI Growth (2) Revenue Growth (3) Growth (3)
Slide 12: Effective Economic Risk Mitigation Strategies
Effective Economic Risk Mitigation Strategies Benefits of Scale and Diversification on Display EXPOSURE BY REVENUE (1) CORE FFO/SHARE EXPOSURE (2) 58% 24% 6% 6% 1% 1% <1% <1% <1% <1% <1% <1% <1% USD EURO GBP SGD AUD CHF JPY CAD SEK DKK HKD KES HRK < 1% <1% 6% < 1% 1% <1% 2.0% 58% 24% <1% 2022 0.75%
Slide 13: Four Quarter Two-Step
Four Quarter Two-Step Record Backlog Drives Second-Half Pickup 2022E CORE FFO PER SHARE 1Q22 NOI Normalized FX 2Q22 3Q22 4Q22 Growth OpEx Note: Based on management estimates; actual performance may differ materially. Core FFO and NOI are non-GAAP financial measures. For descriptions and reconciliati
Slide 14: Committed to Conservative Capital Structure
Committed to Conservative Capital Structure Maximizing Capital Menu Options, Minimizing Cost Net Debt to Adjusted EBITDA (1) Fixed Charge Coverage Ratio (2) 6.3x 5.9x -0.4x 5.7x 5.5x 0.2x 9% 3% Floating Rate Floating Rate Debt Debt (3) 1Q22 Pro Forma 1Q22 1Q22 Pro Forma 1Q22 (3) (3) Reported Adjustm
Slide 15: Matching the Duration of Assets and Liabilities
Matching the Duration of Assets and Liabilities Clear Runway on the Left, No Bar Too Tall on the Right DEBT MATURITY SCHEDULE AS OF MARCH 31, 2022 (1)(2) DEBT PROFILE (U.S. $ in billions) Unsecured 99% Secured 6.1 Weighted Avg. YEARS 2.2 % Weighted Avg. Unsecured Maturity (1)(2) Coupon (1) $2.1 Fixe
Slide 16: Q&A
Q&A DIGITAL REALTY | 1Q22 FINANCIAL RESULTS | APRIL 28, 2022 | 16
Slide 17: Consistent Execution on Strategic Vision
Consistent Execution on Strategic Vision Delivering Current Results, Seeding Future Growth SUCCESSFUL 1Q22 INITIATIVES 1. Strengthening Connections with Customers Booked $167 million of new business and landed 128 new logos 2. Enhancing our Global Platform Announced transaction establishing Digital
Slide 18: Appendix
Appendix DIGITAL REALTY | 1Q22 FINANCIAL RESULTS | APRIL 28, 2022 | 18
Slide 19: Digital Transformation Driving Steady Demand
Digital Transformation Driving Steady Demand Global Full-Product Spectrum Provides Broadest Solutions HISTORICAL BOOKINGS TRAILING FOUR-QUARTER AVERAGE ANNUALIZED GAAP BASE RENT $ in millions $150 $100 $50 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1Q22 TRAILING FOUR-QUARTER AVER
Slide 20: 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 21: 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 22: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
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 Funds From Operations (FFO) (in thousands, except per share and unit data) (unaudited) Three Months Ended March 31, 2022 Marc
Slide 23: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
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 March 31, 2022 March 31, 2021
Slide 24: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
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 25: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Same Capital Cash Net Operating Income (in thousands) (unaudited) Three Months Ended March 31, 2022 March 31, 2021 Rental revenues $ 582,356 $ 609,098 Tenant reimbursements
Slide 26: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Total Debt/Total Enterprise Value QE 3/31/22 Debt Service Ratio (LQA Adjusted EBITDA/GAAP interest expense plus capitalized interest and less bridge facility (i) Market value of common equity $ 41,257,638 fees) Liquidation value of pr