Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q1 2020 Earnings Presentation
26 slides from Digital Realty Trust's earnings presentation, May 8, 2020
Slide 1: Global. Connected. Sustainable. 1Q20 Financial Results
Global. Connected. Sustainable. 1Q20 FINANCIAL RESULTS MAY 2020 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 DIGITAL REALTY | 1Q20 FINANCIAL RESULTS | MAY 7, 2020 | 2
Slide 3: Prioritizing Health and Safety amid Global Pandemic
Prioritizing Health and Safety amid Global Pandemic Maintaining Resiliency Employees and Vendors • Minimized on-site data center staffing and increased safety protocols, i.e. sanitation efforts, training • Coordination with suppliers to confirm their response plans and service continuity capacity •
Slide 4: Serving a Social Purpose
Serving a Social Purpose Delivering Sustainable Growth for All Stakeholders ENVIRONMENTAL SOCIAL GOVERNANCE Enhanced Board 2020 Named 2020 EPA $1,000,000 philanthropic effort diversity with the ENERGY STAR® put forth to help combat the Partner of the Year addition of three new COVID-19 pandemic Dire
Slide 5: Expanding Global Platform
Expanding Global Platform Supporting Customer Growth Manchester| 38k NRSF Stockholm| Dublin| 12MW 22MW Copenhagen| London| 9MW 108MW Brussels| Amsterdam| 9MW Paris| 99MW 35MW Dusseldorf| Marseille| 4MW 15MW Frankfurt| 86MW Vienna| Madrid| Geneva| Zurich| 26MW 12MW 59k NRSF 5MW Strategic Combination
Slide 6: Combining Two Leading Platforms in EMEA
Combining Two Leading Platforms in EMEA Further Solidifying Global Connection with Customers Customers Communities of Interest Growth Collaborated on customer Assessing fiber connectivity Leveraging investment grade proposals for Paris, Amsterdam, between data centers in balance sheet to examine Bru
Slide 7: Durable Business Model
Durable Business Model Levered to Long-Term Secular Demand Drivers 4Q19 CALL CURRENT Better/ February 10, 2020 May 1, 2020 Worse 2020E 2021E Global GDP Growth Forecast (1) 2020E: 3.3% 2020E: -3.0% -3.3% 5.8% U.S. GDP Growth Forecast (1) MACROECONOMIC 2020E: 2.0% 2020E: -5.9% -5.9% 4.7% U.S. Unem
Slide 8: Digital Transformation Driving Data Center Demand
Digital Transformation Driving Data Center Demand PlatformDIGITAL Poised to Capitalize Digital Transformation Driving Data Center Demand Global Data Center Leader (3) 1.9x Leaders 66 Equinix 27 x 8 Digital Realty CAPABILITIES 34 Interxion Cyxtera NTT CoreSite Major Rackspace CyrusOne Players All Cou
Slide 9: Financial Results
Financial Results DIGITAL REALTY | 1Q20 FINANCIAL RESULTS | MAY 7, 2020 | 9
Slide 10: Combination Creates Powerful Global Platform
Combination Creates Powerful Global Platform Includes Interxion Expanded Customer Base and Reach Poised for Growth Global Presence Customers and Communities Growth 275 4,000+ $2Bn Data Centers Customers of Development 44 145,000+ 188MW Metros Cross-Connects of Construction 86% 29% 34% Total Occupanc
Slide 11: Digital Transformation Driving Steady Demand
Digital Transformation Driving Steady Demand Excludes Interxion Global Full-Product Spectrum Provides Broadest Solutions HISTORICAL BOOKINGS ANNUALIZED GAAP BASE RENT(1)(2) $ in millions Space & Power Interconnection $100 $75 $50 $25 $0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1Q20 BOO
Slide 12: Attracting New Logos
Video Communities of Interest Streaming Attracting New Logos 74 New Logos in 1Q20 (1) Excludes Interxion Social Media Application $8.6mm Interconnection Bookings Excludes Interxion AI-Powered Tech for Investment Management $16mm Bookings in APAC Excludes Interxion 1) Includes 54 new logos added by D
Slide 13: Top-Line Step Function: Healthy Backlog
Top-Line Step Function Excludes Interxion Healthy Backlog Sets a 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 $10 $16 $56 $43 $2 $8 $
Slide 14: Cycling Through Peak Vintage Renewals
Cycling Through Peak Vintage Renewals Excludes Interxion Colocation Contribution Boosts Overall Results 1Q20 RE-LEASING SPREADS TURN-KEY FLEX® POWERED BASE BUILDING® COLOCATION TOTAL RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE -9.3% -17.2% 2.0% -1.5% CASH CASH CASH CA
Slide 15: Effective Economic Risk Mitigation Strategies
Effective Economic Risk Mitigation Strategies Excludes Interxion Benefits of Scale and Diversification on Display EXPOSURE BY REVENUE(1) CUSTOMER CONCENTRATION BY REVENUE(2) USD CAD GBP EURO JPY HKD SGD AUD LATAM Content Potential 17% At-Risk 0.9% 9% Financial Enterprise 5% 12% 4% Cloud 2% 78% 26% O
Slide 16: Four Quarter Two-Step
Four Quarter Two-Step Includes Interxion Beat, Dip, Shuffle, Bounce 2020E CORE FFO PER SHARE $1.53 1Q20 NOI Growth Strategic Capital COVID-19 Interxion 2Q20 3Q20 4Q20 Management Investments Note: Based on management estimates; actual performance may differ materially. Core FFO and NOI are non-GAAP f
Slide 17: Prudently Financed Transaction Enhances Credit Profile
Prudently Financed Transaction Enhances Credit Profile Includes Interxion Reflecting a Full-Quarter Contribution Net Debt to Adjusted EBITDA(1) Fixed Charge Coverage Ratio(2) 6.6x 1.5x 4.8x 5.1x 1.0x 3.8x 8% 0% Floating Rate Floating Rate Debt Debt(3) 1Q20 Pro Forma 1Q20 1Q20 Pro Forma 1Q20 Reported
Slide 18: Matching the Duration of Assets and Liabilities
Matching the Duration of Assets and Liabilities Includes Interxion Clear Runway on the Left, No Bar Too Tall on the Right DEBT MATURITY SCHEDULE AS OF MARCH 31, 2020(1)(2) DEBT PROFILE (U.S. $ in billions) 98% Unsecured 6.2 3.0 % Unsecured Secured YEARS Weighted Avg. Weighted Avg. Maturity(1)(2) Cou
Slide 19: Consistent Execution on Strategic Vision
Consistent Execution on Strategic Vision Delivering Current Results, Seeding Future Growth SUCCESSFUL 1Q20 INITIATIVES 1. Enhancing Platform Value 145,000+ Closed Interxion combination, Westin acquisition and Mapletree disposition Cross-Connects 2. Delivering Sustainable Growth for Stakeholders Rece
Slide 20: Appendix
Appendix DIGITAL REALTY | 1Q20 FINANCIAL RESULTS | MAY 7, 2020 | 20
Slide 21: Robust Long-Term Demand, Lumpy Near-Term Signings
Robust Long-Term Demand, Lumpy Near-Term Signings Excludes Interxion Diverse Customer Base + Product Offerings HISTORICAL BOOKINGS TRAILING FOUR-QUARTER AVERAGE ANNUALIZED GAAP BASE RENT(1)(2) $ in millions Space & Power Interconnection $80 $60 $40 $20 $0 2010 2011 2012 2013 2014 2015 2016 2017 2018
Slide 22: Firm Fundamentals: Robust Demand, Rational Supply
Firm Fundamentals Excludes Interxion Robust Demand, Rational Supply NORTH AMERICA EMEA APAC 2,964 2,557 1,354 1,250 896 1,014 1Q19 1Q20 1Q19 1Q20 1Q19 1Q20 MEGAWATTS COMMISSIONED(1)(2) MEGAWATTS COMMISSIONED(1)(2) MEGAWATTS COMMISSIONED(1)(2) 91% 88% 89% 80% 84% 84% DIGITAL DIGITAL REGION DIGITAL RE
Slide 23: 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 24: 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 25: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent DIGITAL REALTY | 1Q20 FINANCIAL RESULTS | MAY 7, 2020 | 25
Slide 26: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Note: For quarter ended March 31, 2020 DIGITAL REALTY | 1Q20 FINANCIAL RESULTS | MAY 7, 2020 | 26