Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q4 2017 Earnings Presentation
23 slides from Digital Realty Trust's earnings presentation, Feb 15, 2018
Slide 1: Global. Connected. Sustainable. 4Q17 Financial Results
Global. Connected. Sustainable. > a a x wi « 4 <q E © fa) FEBRUARY 2018, 4017 FINANCIAL RESULTS
Slide 2: Navigating the Future
Navigating the Future Sustainable Growth for Customers, Shareholders and Employees GLOBAL CONNECTED | uy SUSTAINABLE } 4 @® 4017 DIGITAL REALTY FINANCIAL RESULTS | FEBRUARY 15, 2018
Slide 3: Fourth Quarter Investment Activities
Fourth Quarter Investment Activities Strategic and Complementary JOINT VENTURES ACQUISITIONS DISPOSITIONS 44874 Moran Road, Sterling, VA * Sale Price: $34 million * Cap Rate: 7% Osaka and Tokyo, Japan Digital Realty: 50% Mitsubishi Corporation: 50% * Contribution Price: $1664 million * Blended Cap R
Slide 4: Robust Demand, Rational Supply
Robust Demand, Rational Supply cog coe HH Major U.S. Metro Areas Healthy volumes of underway supply in em 89% 89% BSH 9% KOM ears voy 207 507 407 = 1-207 30” 40” «TOY 207 sa” A017 ‘Metro DLR Metro DLR Metro DLR Healthy Occupancy Rates 94% 85% 84% 92% 95% Tight vacancy across al three markets as new
Slide 5: Macroeconomic and market forecast comparison
3Q17 CALL CURRENT Better/ October 20, 2017 February 14, 2018 Worse 2018E 2019E Global GDP Growth Forecast (1) 2018E: 3.7% 2018E: 3.7% tu 3.7% 3.6% U.S. GDP Growth Forecast (1) 2018E: 2.3% 2018E: 2.7% p 2.7% 2.3% U.S. Unemployment Rate (2) 4.2% 4.1% q 3.9% 3.8% Inflation Rate – U.S. Annual CPI Index
Slide 6: Digital Realty
ti DIGITAL REALTY
Slide 7: Comprehensive Solutions Support Diverse Customer Base
Comprehensive Solutions Support Diverse Customer Base ees Annualized GAAP Annu: ve Base Rent / sf. @ Base Rent @ Historical Lease Signings Annualized GAAP Base Rent @ Sin milions $20 wl 1 20 3Q 40 10 20 30 40 10 20 30 40 10 20 30 40 10 20 30.40 10 20 30 40 10 20 3Q.4Q 10 20 3Q.4Q 10 20 3Q4Q tree eae
Slide 8: Front-End-Loaded Commencement Schedule
Front-End-Loaded Commencement Schedule Backlog Roll-Forward + Commencement Timing i current Period Backlog [ij Signings [jj Commencements [jj Total Backlog Sinton $150 $150 $2 — $100 $100 $50 $50 & rs 3Q17 Backlog Signings Commencements Other” ———_-4Q17 Backlog 1H2018 22018 2019 2020+ Total Backlog
Slide 9: Positive Mark-to-Market Across All Property Types
Positive Mark-to-Market Across All Property Types PRODUCT TYPE Turn-Key Flex® Powered Base RENEWALS Renewed 196,924 square feet of Turn-Key Flex® data centers " increase on a GAAP basis = Renewed 14,790 square feet of Powered Base Building? data Building® 416% increase on a GAAP basis Colocation inc
Slide 10: Currency exposure and interest rate sensitivity
USD CAD GBP EURO JPY HKD SGD AUD 234 bps 119 bps
Slide 11: High Quality of Earnings with Proven Growth Profile
High Quality of Earnings with Proven Growth Profile OPERATING REVENUE ADJUSTED EBITDA® SF% | Se 610 $548 $551 $566 $ 4Q16° 1017 2Q17 3Q17 4Q17 $428 g312 $323 $329 9352 4Q16 1017 2Q17 3Q17 4Q17
Slide 12: Clear Runway on the Left; No Bar Too Tall on the Right
Clear Runway on the Left; No Bar Too Tall on the Right DEBT MATURITY (USD in billions) $0.5 Saul Gan $0.0 | $00 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 = Pro Rata Share of JV Debt» Unsecured Term Loan Unsecured Senior Notes = Unsecured Credit Facility GS
Slide 13: Delivering Current Results, Seeding Future Growth
Delivering Current Results, Seeding Future Growth Successful Fourth Quarter 2017 Initiatives ALLOCATING CAPITAL PRUDENTLY EXECUTING ON INTEGRATION EXCEEDING EXPECTATIONS FUNDING GROWTH INTERNALLY
Slide 14: Slide 14
Slide 15: Robust Long-Term Demand, Lumpy Near-Term Signings
Robust Long-Term Demand, Lumpy Near-Term Signings Diverse Customer Base + Product Offerings Historical Lease Signings Trailing Four-Quarter Average Annualized GAAP Base Rent $40 g 10 a || il | | 1 20 3Q 4Q 10 2Q 30 40 10 20 30 40 10 20 30 4Q 10 20 30 40 10 20 30 4Q 10 20 30 40 10 20 3Q. 40 10 2Q3Q4Q
Slide 16: U.S. Major Metro Area Data Center Supply
U.S. Major Metro Area Data Center Supply Supply Largely Concentrated in Most Active Metro Areas 4Q17 Current Supply ® “New Construction pigital Realty Inventory ® Boston Chicago Dallas Houston NVirgina NY Metro Phoenix Silicon Valley 3Q17 current Supply ® “New Construction ® Digital Realty Inventory
Slide 17: Appendix
Appendix inthis presentati alternative x al ash flows from operating, investing liquisity Funds from Operations (FEO) ¥ is oF FFO, in accordance wi Trusts, or NAREIT. financing costs), nor captures trends We also believe that . operating perfor ITs. However, s the level of capita ary 10 iancial cond
Slide 18: Appendix
Appendix EI We believe that earings before interes, loss from early extinguishment of deb, income taxes and depreciatio supplemental and amorization a EBITDA and Adjusted EBITDA as defined bao ar ust perfor with respect t0 ‘Adjusted EBITDA legal transaction and integration ncash (9 rnoncontroling an
Slide 19: Forward-Looking Statements
Forward-Looking Statements Telnet nun rerio os vr kg aes Sih eens ae be on apes ells arose aon cen blo marae Sh echnology dng ROI sins including ning oral el tentry and matries lase maturities. our aby to access the nue a abi tes inclucng the aby 10 raise adhonal a het You canidentfy ‘pelos “expect
Slide 20: FFO reconciliation
December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Net (loss) income available to common stockholders 53,306$ 77,682$ 173,148$ 332,088$ Adjustments: Noncontrolling interests in operating partnership 2,138 1,154 3,770 5,298 Real estate related depreciation and amortization (1) 28
Slide 21: Core FFO reconciliation
December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 FFO available to common stockholders and unitholders -- diluted 316,845$ 255,377$ 1,011,274$ 867,662$ Termination fees and other non-core revenues (1) (447) (33,104) (1,031) (33,197) Significant transaction expenses 15,681 8,961
Slide 22: EBITDA reconciliation
December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Net (loss) income available to common stockholders 53,306$ 77,682$ 173,148$ 332,088$ Interest 73,989 56,226 258,642 236,480 (Gain) loss from early extinguishment of debt - 29 (1,990) 1,011 Taxes 545 2,304 7,901 10,385 Depreciati
Slide 23: Net operating income reconciliation
December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Rental revenues 243,242$ 243,495$ 980,994$ 974,918$ Tenant reimbursements - Utilities 38,298 35,888 150,050 149,910 Tenant reimbursements - Other 18,510 16,566 67,018 68,734 Interconnection and other 51,237 46,739 200,693 179,46