Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q1 2024 Earnings Presentation
30 slides from Digital Realty Trust's earnings presentation, May 2, 2024
Slide 1: 1Q24 Financial Results
1Q24 FINANCIAL RESULTS May 2, 2024 Global. Connected. Sustainable. The meeting place for companies, technologies and data
Slide 2: Executing on Key Strategic Priorities
Executing on Key Strategic Priorities Positioning for Long-Term Sustainable Growth 5,000+ 221,500 Customers Cross Connects Strong Operating Continued to 1 Record Leasing 2 3 Results Innovate 50+ 300+ Metros Data Centers >40% 18.5% Record Increase in Above Prior >1 MW Renewal Coverage Capacity Bookin
Slide 3: Strong Demand for Data Center Capacity
Strong Demand for Data Center Capacity PlatformDIGITAL® Well Positioned Enterprises Service providers 10–15% Forecasted Data Center Digitization Hyperscale Capacity 24GW Demand Growth Opportunity Compounding(5) Unfolding(1) New capacity by 2028 through 2030 T H E DATA MEETING PLACE $6.4T IT Spend Ac
Slide 4: Connected Data Communities
Connected Data Communities Strong 0-1MW + IX Revenue 1Q24 Results 128 new logos $53M total 1Q bookings from 0-1 MW + Interconnection #3 Highest 0-1MW + IX Bookings in History 1Q24 Financial Results 4
Slide 5: Offering a Global Data Center Platform
Offering a Global Data Center Platform Global Capacity to Meet Growing Customer Demand Global Capacity 32 MW delivered in 1Q24 ~2,500 MW total capacity in place >3,000 MW buildable IT capacity Note: As of March 31, 2024. 1Q24 Financial Results 5
Slide 6: Northern Virginia Update
Northern Virginia Update Power Transmission Issues Constrain Capacity in Ashburn Digital Dulles Manassas(1) Total in NoVA 272 MW Total Available For Lease 632 MW White Space IT Load In-Place (2) 500+ Acres of land holdings that 80 MW 192 MW will support the build-out of Available For Lease Available
Slide 7: Leading Data Center Partner for Sustainability
Leading Data Center Partner for Sustainability Science-Based Target Commitment to Reduce Global Emissions by 68% by 2030 Renewable Energy Green Buildings Energy Efficiency Green Bonds Leading data center purchaser of More green building certified IT capacity More energy star certifications than any
Slide 8: Serving a Social Purpose
Serving a Social Purpose Delivering Growth for All Stakeholders Social Governance Newsweek’s America’s Most Susan Swanezy added to the Board of Responsible Companies of 2023 Directors 2024 Enhanced Board diversity to 44% female Top 100 ranking on JUST Capital or ethnically diverse America’s Most JUS
Slide 9: 1Q24 Financial Results
1Q24 Financial Results 1Q24 Financial Results 9
Slide 10: AI Spurs Demand for Large Capacity Blocks
HISTORICAL BOOKINGS AI Spurs Demand ANNUALIZED GAAP BASE RENT $ in millions for Large Capacity Blocks $240 Strong and Steady $180 Leasing for 0-1MW + IX $120 • Record Quarter of $252M Bookings $60 • Record High >1 MW $0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 average leasing rate 1Q24 BOOK
Slide 11: Record Backlog
BACKLOG ROLL-FORWARD (1) COMMENCEMENT TIMING (3) Record Backlog $ in millions $ in millions Bodes Well for $239M $144M Future Growth $131M $541M $46M $541M $235M $218M $40M $446M (2) • Record Backlog $193M of $541 Million $495M $495M $392M $277M • Record $156 Million of $263M Commencements, Includin
Slide 12: Strong Pricing Environment
Strong Pricing 1Q24 RENEWAL SPREADS Environment Record Renewal Spreads 0-1 MW > 1 MW OTHER (1) TOTAL RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE 3.8% 18.5% 84.7% 11.8% • Record Cash Renewal CASH CASH CASH CASH Spreads in > 1MW 4.3% 21.6% 88.1% 13.0% Segment GAAP GAAP
Slide 13: Revenue Exposure by Currency
EXPOSURE BY REVENUE (1) 51% 23% 6% 5% 4% 3% 2% 2% 1% 1% <1% Revenue Exposure USD EURO GBP SGD ZAR BRL JPY CHF CAD AUD OTHER by Currency 1% 6% <1% <1% FX Slight Tailwind in the 23% 2% First Quarter 51% <1% 2% <1% <1% 5% <1% • Local Operations Funded 3% <1% in Local Currencies act as 4% 1% a Natural H
Slide 14: Net Debt to Adjusted EBITDA
Net Debt to Adjusted EBITDA(1) Bridge to Pro Forma: Announced or Completed 6.1x Transactions 5.8x • Blackstone JV – Phase 2 to Close Later this Year • Contributed Asset (CH2) on Elk Grove Campus to GI Partners, in April • Sold an additional 24.9% Interest in Frankfurt Site to Digital Core REIT, in A
Slide 15: Matching the Duration of Assets and Liabilities
€ Matching the Duration of Assets and Liabilities Modest Near-Term Maturities, Well-Laddered Debt Schedule DEBT MATURITY SCHEDULE AS OF MARCH 31, 2024 (1)(2) DEBT PROFILE (U.S. $ in billions) $3.5 Unsecured 4.3 YEARS $3.3 2.8 % 97% Secured Weighted Avg. Weighted Avg. Unsecured Maturity (1)(2) Coupon
Slide 16: 2024 Financial Guidance Update
2024 Financial Guidance Update Improving Core Growth As of Feb. 15, 2024 As of May 2, 2024 Better/Worse Total Revenue $5,550 – $5,650 $5,550 – $5,650 (1) Adjusted EBITDA $2,800 – $2,900 $2,800 - $2,900 Rental Rates on Renewals Leases 4.0% – 6.0% 5.0 – 7.0% (Cash) Year-End Portfolio Occupancy +100 –
Slide 17: Q&A
Q&A Global. Connected. Sustainable. 1Q24 Financial Results 17
Slide 18: Positioned for Long-Term Sustainable Growth
Positioned for Long-Term Sustainable Growth PlatformDIGITAL® is the Choice for AI, Cloud and Hybrid IT Strengthening Innovating Diversifying Customer and and Bolstering Value Integrating Capital Proposition Sources Record New Leasing and Strong ServiceFabric Expansion Raised Over $1 Billion of Opera
Slide 19: Appendix
Appendix 1Q24 Financial Results 19
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: FFO
Reconciliation of Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Net Income Available to Common Stockholders to Funds From Operations (FFO) Non-GAAP Items (in thousands, except per share and unit data) (unaudited) To Their Closest GAAP Three Months Ended March 31, 2024 March 31, 2023
Slide 23: Reconciliation of Non-GAAP Items: Core FFO
Reconciliation of Non-GAAP Items To Their Closest GAAP Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Funds From Operations (FFO) to Core Funds From Operations (CFFO) Equivalent (in thousands, except per share and unit data) (unaudited) Three Months Ended March 31, 2024 March 31, 2023
Slide 24: Reconciliation of Non-GAAP Items: EBITDA
Reconciliation of Non-GAAP Items Digital Realty Trust, Inc. and Subsidiaries To Their Closest GAAP Reconciliation of Net Income Available to Common Stockholders to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA Equivalent (in thousands) (unaudited) Three
Slide 25: Reconciliation of Same Capital Cash NOI
Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Same Capital Cash Net Operating Income Reconciliation of (in thousands) (unaudited) Non-GAAP Items Three Months Ended March 31, 2024 March 31, 2023 To Their Closest GAAP Rental revenues Tenant reimbursements - Utilities $ 710,342 $ 228,34
Slide 26: Reconciliation of Non-GAAP Items: Debt Ratios 1Q24
Total Debt/Total Enterprise Value QE 03/31/24 Debt Service Ratio (LQA Adjusted EBITDA/GAAP interest expense plus capitalized interest and less bridge facility (i) Reconciliation of Market value of common equity $ 45,950,001 fees) (ii) Liquidation value of preferred equity 755,000 Total GAAP interest
Slide 27: Reconciliation of Non-GAAP Items: Debt Ratios 2Q23
Total Debt/Total Enterprise Value QE 06/30/23 Debt Service Ratio (LQA Adjusted EBITDA/GAAP interest expense plus capitalized interest and less bridge facility (i) Market value of common equity $ 34,812,727 fees) Liquidation value of preferred equity(ii) 755,000 Total GAAP interest expense (including
Slide 28: Reconciliation of Non-GAAP Items: Debt Ratios 3Q23
Total Debt/Total Enterprise Value QE 09/30/23 Reconciliation of Debt Service Ratio (LQA Adjusted EBITDA/GAAP interest expense plus capitalized interest and less bridge facility (i) Market value of common equity $ 37,434,562 fees) Liquidation value of preferred equity(ii) 755,000 Total GAAP interest
Slide 29: Reconciliation of Non-GAAP Items: Debt Ratios 4Q23
Total Debt/Total Enterprise Value QE 12/31/23 Reconciliation of Debt Service Ratio (LQA Adjusted EBITDA/GAAP interest expense plus capitalized interest and less bridge (i) Market value of common equity $ 42,804,053 facility fees) Liquidation value of preferred equity(ii) 755,000 Total GAAP interest
Slide 30: Thank you
r Thank you FN DIGITAL Lv REALTY.