Slide 1: Sustainable Value Creation
Sustainable Value Creation DIGITAL REALTY 2Q16 FINANCIAL RESULTS. JULY 2016 DIGITAL REALTY
Slide 2: Superior Returns
SUPERIORRETURNS = Deliver superior risk-adjusted total returns Our Focus CAPITAL ALLOCATION Prudently allocate capital to opportunistically extend global campus Our philosophy is to deliver superior returns 6 by capitalizing on our core competencies iloring them to meet our customers’ PRODUCT OFFERI
Slide 3: Expanding the Global Footprint
Expanding the Global Footprint AMSTERDAM Significant Presence in Top Three European Data Center Markets IAS 2 4 of the most strategically Premium assets with str rong interconnection growth colocation lease-up since in Oliver's Yard Fa fi Total kW 2 ee strategically important eae 650+ diversified cl
Slide 4: Executing on Capital Recycling
Executing on Capital Recycling Redeploying Accretively, Enhancing Portfolio Quality
Slide 5: Data Center Supply in Perspective
Data Center Supply in Perspective The Fundamentals Glass is Still Half-Full Top Metro Areas Seeing Robust Demand Being Met by Increasing Inventory National Metro Areas ety Caan Beis Hh ney 9 \ aw uw 2 3 MW fot 74% Leased fey 100% Leased ‘3% Leased LTM Market abso Market Market Market eS ‘bsorption-t
Slide 6: Decelerating Global Economic Growth Outlook
Decelerating Global Economic Growth Outlook 1016 Call CURRENT Better/ April 28, 2016 Worse Global GDP Growth Forecast 2016E: 32% US. GDP Growth Forecast ® 2O1GE: 24% US. Unemployment Rate ® Inflation Rate ~ US. Annual CPI Index Crude Oil G/barre) © Control of White House, Senate and HoR Three-Month
Slide 7: ti DIGITAL REALTY
ti DIGITAL REALTY
Slide 8: Diverse Customer Base + Product Offerings
Diverse Customer Base + Product Offerings Historical Lease Signings j nce ee Annualized GAAP Base Rent 2 receipe! A is Base Rent / Rent @ Turn-k ° Powered Base Building $40 | | | | | $20 $0 i | | 10 2Q 3Q 4Q 1Q 20 3Q 4Q 10 20 3Q 4Q 10 20 30 4Q 10 20 30 4Q 10 2Q 30 4Q 10 20 3Q 4Q 10 20 GAAP rental 20
Slide 9: Front-Loaded Commencement Schedule
Front-Loaded Commencement Schedule Backlog Roll-Forward + Commencement Timing i Current Period Backlog [Signings [MJ Commencements [ij Total Backlog Sin milions $125 fl $50 1016 Backlog Signings Commencements 2016 Backlog 2016 207 2018+ Total Backlog Note
Slide 10: Approaching Mark-to-Market Inflection Point
Approaching Mark-to-Market Inflection Point Re-Leasing Spreads * Signed renewal leases representing $594 million of annualized GAAP rental revenue Total Rental rates were up on a cash basis by 28% and Data Center increased by 81% on a GAAP basis for total data center spac Turn-Key + Renewed 227155 s
Slide 11: M&A Scorecard
M&A Scorecard Slightly Behind $148+ million UNDERWRITING ARGET CUE $917 million $38.4 million NTATION| JULY.28. 2016
Slide 12: Operating Outperformance + Cost Savings Drive Upside
Operating Outperformance + Cost Savings Drive Upside 2Q16 Core FFO / Share Reconciliation $1.50 $0.01 <$0.01 30.01 —e $1.40 $0.01 5 — $130 $120 $110 2016 Consensus Revenue Operating Expenses G&A Interest Expense Core FFO / Share Core FFO / Share 1 Based on FactSet consensus estimates as of July 27,
Slide 13: Consistently Improving Quality of Earnings
Consistently Improving Quality of Earnings mStraight-Line Rental Revenue _ Straight-Line Rent as % of Revenue 6.0% ° 6% 55% 55% oe 52% ° * 5.0% ° 45% 4% e 5227] ° rm $21.2 $213 A% $199 fl S197] $199) 35% : 33% si8.6 $176) ° 2 Se $14.5] $13.4 s13.6 19% $10 % 505 MeO <74 Ae iss | 1013-2013, 3013. 4Q1S
Slide 14: FX Represents ~50-100 bps Drag on Reported Results
FX Represents ~ 50-100 bps Drag on Reported Results i As Reported Hl Constant-Currency (7 Total Including Telx 28% 2016 / 2015 2016 / 2015 2016 / 2015 2016 / 2015 2016E / 2015 Revenue Growth ‘Adj. EBITDA Same-Capital Cash Core FFO/sh Core FFO/sh Growth®
Slide 15: USD CAD GBP EURO JPY HKD SGD AUD 13% 5% 75% 4%
USD CAD GBP EURO JPY HKD SGD AUD 13% 5% 75% 4%
Slide 16: Transaction Overview
Transaction Overview Pubic Eauy Sale of artts forward sale price in the future to BofAML, Citiand JPM Sook oan site ee sees eset sa es eg fect Benefits ——_—_——— * DLR locks in a value for the future issuance of equity Physical Settlement * Avoids overhang on DLR stack price Guise oun utstanding Cons
Slide 17: One-Way Draw-Down
One-Way Draw-Down Gin billions) Pes Forward Equity Offering $14Bn European Portfolio Acquisition $0.9 Bn Underwriters' Over-Allotment Option $0.2Bn Mortgage Debt Maturities $0.2 Bn Four-Property Portfolio Sale $01Bn Preferred Equity Redemption $0.3Bn Paris Option Property $0.2Bn Additional Investmen
Slide 18: Pro Forma Leverage Expected to Drop Below 5.0x
Pro Forma Leverage Expected to Drop Below 5.0x PRO FORMA NET DEBT / LQA ADJUSTED EBITDA 2016 CAPITAL MARKETS HIGHLIGHTS .. $13 billion Equity Issuance A) Forward equity offering allows Digital Realty to de-lever (WED sheet and acquire strategic European portfolio €600M Inaugural Euro Bond Offering ‘
Slide 19: Delivering Current Results, Seeding Future Growth
Delivering Current Results, Seeding Future Growth Successful Initiatives EXTENDING GLOBAL FOOTPRINT EXCEEDING EXPECTATIONS DELIVERING DOUBLE-DIGIT AFFO GROWTH RAISING GUIDANCE STRENGTHENING THE BALANCE SHEET
Slide 20: Appendix
Slide 21: U.S. Major Metro Area Data Center Supply
U.S. Major Metro Area Data Center Supply Supply Largely Concentrated in Most Active Markets 2Q16 "Current Supply © “New Construction Digital Realty Inventory ? 80 60 40 20 ° Boston Chicago Dallas Houston NVirgina NY Metro Phoenix Silicon Valley 1016 "Current Supply ® “New Construction Digital Realty
Slide 22: Appendix
Appendix 1" ancl 1a management believes are helptl in undersia 9s further 6 ‘i and, e b A lguiiy. EUNDS FROM OPERATIONS (EFO) te cau atonal Associa Trusts, or NAREIT. ) to . ent charges, es. Manag entre ye We aso believe r amet the changes nthe val ket conditions nr recessary to maintain the operati
Slide 23: Appendix
Appendix EBITDA AND ADJUSTED EBITDA We believe tha the cost of debt and, ° on, severance ela P J legal exp ith Tels, loss on equity forwards othe , nd mn Tel, oss on currency forwards, ens, non-ontroli In addition, we believe EBIT a ‘ usines, their Other r y than ve do, oly, el ‘Accordingly, EBIT 0
Slide 24: Forward-Looking Statements
Forward-Looking Statements The information inde inthis presenta ents S beets and assumptions made based on information cure avaiable to damit cn Gr anuae Gatton GS°e% carom 00 tor vu pared Gromer and matte opportunities 5 0 abi ce ctmaten aes gowh aes 1d vers catacerter cusourcing MMW reuters, growt
Slide 25: Reconciliation of Core EBITDA
Reconciliation of Core EBITDA (unaudited) (in thousands) Three Months Ended June 30, 2016 Net Loss ($8,185) Income Tax Expense (Benefit) 58 Interest Expense, net 857 Depreciation & Amortization 39,996 EBITDA $32,726 Plus: Non-Cash Rent 7,740 Plus: Non-Cash Compensation 429 Plus: Transaction Expenses
Slide 26: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Slide 27: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Slide 28: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Digital Realty Trust, nc and Subsidiaries Reconciliation of Same Capital Cash Net Operating Income ‘Six Months Ended “une 30,2016 June 30,2015 “une 30,2016 June 30,2015, Saget Total Expenses Net Operating Income = see _S es = Subir tn
Slide 29: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Digital Realty Trust, Inc. and Subsidiaries Reconciliation of F Gn thousands, except per share and unit data) unaudited) FO andy s~dlluted = Diluted CFFO per share and unit s (> Includes one-time fees, proceeds and certain other adjus
Slide 30: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Slide 31: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Reconciliation of Core FFO 10 AFFO Core FFO available to common stockholders and unitholders Adjustments: “Three Months Ended June 30, 2016 3212587 asm $199,984 June 30, 2015 $180,773 13% 2089 33) smea9