Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — NAREIT Institutional Investor Conference June 2005
22 slides from Digital Realty Trust's conference presentation, Jun 8, 2005
Slide 1: Digital Realty Trust NAREIT Institutional Investor Conference June 2005
Exhibit 99.2 DIGITAL NAREIT June 2005INSTITUTIONAL REALTY TRUST INVESTOR CONFERENCE
Slide 2: Forward Looking Statements
Forward The to uncertainties real inability in changes laws discussed update 1 management. identifying estate information and forward-looking to to Looking increases in developments tax acquire our and properties law; Such annual included factors Statements in new environmental real statements repor
Slide 3: Digital Realty Trust Overview
Digital Exclusive Assets Diversified 33 Includes Additional Strategically Properties DLR 2 properties isthat Realty ideally a focus are portfolio 385,000 are across located comprising designed Trust critical positioned onvarious technology-related square of Overview into 515 toproperties operations
Slide 4: Investment Highlights
Investment Specialized High Industry Acquisition Uniquely 3 quality consolidator positioned Highlights focus and portfolio leasing in dynamic aswith that both pace is proven adifficult creates and valuegrowing ability and potential to replicate growth toindustry acquire forREIT strong assetsFFO belo
Slide 5: Unique Portfolio of Data Centers and Internet Gateways
Unique Webb Dallas Data Used 200 San Internet Market-dominant Frequently Represent Tenants 4 Paul Francisco Centers centers by atTechnology typically Gateways gateways LBJ corporations Avenue 34.0% 42.5% serve provide as of invest position serve aFocused total asuper-regional for secure as between p
Slide 6: Value of Data Center Space to Customers
Value Customers Government Internet Financial Healthcare 3 Data Receives, 10 DLR (1) 5 toto Source: 5Center receives 15 Chain year Enterprises year Institutions on leases of Companies Tier1 Tenant Customers — Agencies average, leases data $19 Internet Research. / per center contracts $300 square Gat
Slide 7: Tenants' Revenue per Square Foot Growth
Tenants’ DLR’s Revenue Average 3 $234 $250 $254 55% $300 Q1 2002 2003 2004 25% $0 29% $50 33% 30% 35% $100 40% $150 $142 $157 $200 47% 45% 50% Source: from 6 YR 2005E SG CAGR top Weighted Utilization Revenue Cowen, per pure-play Available = 21% Citigroup average per Rate tenants, Available Square co
Slide 8: Strong Market Fundamentals
Strong Market (in $0 $5,000 $10,000 $15,000 $14,007 $15,941 $16,932 $18,833 $20,000 $25,000 $21,128 $30,000 $24,010 $35,000 2002 Content Domestic eCommerce CAGR $0.4 $0.6 $1.0 $1.7 $2.6 $4.1 $5.7 $7.1 2000 $15.5 $20.2 $26.6 $32.3 $39.8 $48.5 Jun Dec Source: 7 millions) ‘01 ‘02 ‘03 ‘01 ‘02 ‘03 2003 2
Slide 9: Senior Management Team
Senior Organized Relevant Proven Public Richard Executive 23+ Michael Co-founder CEO 25+ A. CFO/CIO 20+ Scott Sr. 17+ Christopher VP 13+ Ted Director Former 18+ 8 William VP Sales Martin years Peterson Acquisitions markets Management track President Head Director General Magnuson Foust of experience
Slide 10: Total Return Since IPO
Since Mixed 0% 3.6% 5% 4.0% 7.1% 10% 9.8% 15% 12.5% 12.7% 20% 25% 30% 30.4% 29.3% 35% Tech RMS Total DLR 2005E Note: (1) (2) (3) 9 Tech Mixed Source: Real Return Total its -Office/Industrial 2006E Real IPO, Estate Office First return Since Estate DLR FFO Call composite / from Industrial IPO has comp
Slide 11: Geographic and Tenant Industry Diversification
OurServices Geographic Industry Silicon 23% Non- Denver 2% Miami IT 3% London 26% New 31% San Technology Other 14% Chicago 8% Boston Philadelphia 5% Los 9% We 13% Dallas 32% Communications 7% 10 have Angeles Francisco Locations York Valley Distribution beenDistribution expanding and Tenant by Annual
Slide 12: Replacement Cost Analysis
Replacement Cost Base $70 $40 Land Low High Building Electrical 150 60 Mechanical $396 $297 Data 122 92 Fire Other 29 21 Sub 173 130 Total $720 $540 DLR $940 $640 Source: (1) 11 Infrastructure Total Protection per Components Center Building presently Development Construction Data Square Shell System
Slide 13: Recent Acquisitions
Recent We Acquisitions Expected Net Purchase Lakeside 833 $171(1) 9.0% 820,000 $140.0mm Philadelphia, 108 10.7% 545,000 59.0mm MAPP Ameriquest 177 9.7% 88,134 15.6mm Burbank 201 9.2% 82,000 16.5mm 200 8.5% 82,911 16.6mm Savvis $153 9.4% 1,618,045 $247.7mm Los Total 165 11.0% 560,000 92.5mm (1) $156
Slide 14: Leasing Update
20 leases 18 Rent Leasing Excluding Same-store As Note: (1) 13 aLeasing result per From Update costs square for square of occupancy costs October technical non-technical our perfoot: Since per square leasing feet28, square $67.58 $19.89 held IPO space has 2004 foot: activity, increased for space foo
Slide 15: Long-Term, Stable Leases
Long-Term, Lease 9.3% 33.0% 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Available Thereafter 0.7% 1.8% 1.4% 3.0% 8.1% 7.1% 7.4% 7.5% 11.7% 15.1% Leases The Note: 14 average stability expires Excludes Expiration typically Stable lease of through our 385,000 contain asterm Leases long-term a% 20
Slide 16: Financial Guidance
Financial 2005 $1.35 Internal Lease-Up 150,000 sq (gross 3 40,000 External 6 Acquisitions FFO $300 8.75% 9 Overall (1) 15–ftGuidance 4% 8% 12% of Per -FFO -rent -$350 sq $1.40 basic FFO Growth 9.25% –Growth Share Guidance ft200,000 Per $20 of million Per commercial provided Share highly Growth cap /
Slide 17: Conservative Capital Structure
Conservative Series $87mm Unsecured Weighted $103.5mm Preferred $210mm $87.0mm In No Common 51% 36% 6% 7% $578.8mm Debt Secured And $804.7mm Total Dividend FFO Note: (1) (2) (3) 16 the After Based Stock debt Units Payout Market As process A maturing exercise of credit Yield price Equity Avg. outstan
Slide 18: FFO Multiple and Dividend Yield
2005 FFO Dividend Tech 3.0% 10.0x 11.1x 12.5x 4.0% 12.9x 4.4% 14.4x 4.9% 15.0x 5.0% 5.9% 17.5x 6.0% 17.8x 6.4% 20.0x 7.0% Mixed RMS DLR Note: (1) (2) (3) 17 Tech Based Mixed Multiple Real FFO trades Based Office Real Yield on Estate Office Multiple aton First /Estate (1) aIndustrial data significant
Slide 19: Implied Cap Rate Analysis
CapAnnualized An Tech 6.00% C&W 7.50% 6.30% Mixed 8.25% 8.00% DLR 8.56% Annualized Total $134.8 $1,574.0 (1) 10.00% (2) (3) (4) (5) 18 Tech Based Mixed Net analysis Rate Real implied Market market Office million ofReal million Analysis on 385,000 Estate Office Q1 by stock Capitalization cap /Estate
Slide 20: Appendix
qh DictTaL REALTY TRUST Appendix
Slide 21: Reconciliation of Non-GAAP Financial Measures
Reconciliation This non-GAAP or Funds FFO deferred Net NOI Each is Unless Nothing 20 www.digitalrealtytrust.com. limited. any Operating is presentation represents offrom other defined otherwise FFO contained financing financial Operations GAAP and Income and as netNOI indicated, includes total costs
Slide 22: Digital Realty Trust: connecting the worlds of technology and real estate
DIGITAL REALTY connecting the worlds TRUST of technology and real estate
Digital Realty Trust — NAREIT Institutional Investor Conference June 2005 on 6ix