Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q2 2022 Earnings Presentation
26 slides from Digital Realty Trust's earnings presentation, Jul 28, 2022
Slide 1: Global. Connected. Sustainable. 2Q22 Financial Results
Global. Connected. Sustainable. 2Q22 FINANCIAL RESULTS July 2022 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 Selling GLOBALLY… Supporting LOCALLY AMERICAS EMEA APAC DIGITAL REALTY | 2Q22 FINANCIAL RESULTS | JULY 28, 2022 | 2
Slide 3: Launching ServiceFabric CONNECT
Launching ServiceFabric™ CONNECT Multi-Cloud Connectivity and Beyond Connectivity to Redundant Inter-metro/ ecosystems in Disaster Service-chain Multi-Cloud Cloud Inter-region 3rd party Recovery Multiple Connectivity Connectivity Connectivity facilities Set-up Services One port to Connectivity to Co
Slide 4: Expanding Global Platform Supporting Customer Growth
Athens Sao Paulo Expanding Global Platform Supporting Customer Growth Seoul Tel Aviv Tokyo Global Platform 185,000+ 4,000+ 50+ Cross-Connects Customers Metro Areas Note: As of June 30, 2022. DIGITAL REALTY | 2Q22 FINANCIAL RESULTS | JULY 28, 2022 | 4
Slide 5: Sustainability Focus and Performance
Sustainability Focus and Performance Delivering Sustainable Growth for All Stakeholders ENVIRONMENTAL SOCIAL GOVERNANCE 2021 ESG Report Appointed Mary Hogan Preusse as Funded philanthropic organizations to Chairman of the Board, which support Ukrainian refugees, those Published fourth annual ESG Rep
Slide 6: Financial Results
Financial Results DIGITAL REALTY | 2Q22 FINANCIAL RESULTS | JULY 28, 2022 | 6
Slide 7: Digital Transformation Driving Steady Demand
Digital Transformation Driving Steady Demand Global Full-Product Spectrum Provides Broadest Solutions HISTORICAL BOOKINGS ANNUALIZED GAAP BASE RENT $ in millions Space & Power Interconnection $150 $100 $50 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2Q22 BOOKINGS 0-1 MW > 1 MW OTH
Slide 8: Attracting New Logos
IT Service Financial Services Connected Data Communities Provider Attracting New Logos 108 new logos $47 million Game Developer Life Sciences total 2Q bookings from 0-1 MW + Interconnection 53% of 0-1 MW + Interconnection bookings were outside the Americas Note: For quarter ended June 30, 2022. DIGI
Slide 9: Top-Line Step Function
Top-Line Step Function Record Commencements with Healthy Remaining Backlog 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 $13M $11M $90M $136M $40M $4
Slide 10: Improving Pricing Environment
Improving Pricing Environment Positive Re-Leasing Spreads Across Product Types and Regions 2Q22 RE-LEASING SPREADS 0-1 MW > 1 MW OTHER (1) TOTAL RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE 3.0% 1.1% 17.0% 3.4% CASH CASH CASH CASH 3.5% 8.7% 28.2% 5.3% GAAP GAAP GAAP GA
Slide 11: Economic Risk Mitigation Strategies
Economic Risk Mitigation Strategies Local Market Operating, Financing, and Development EXPOSURE BY REVENUE (1) CORE FFO/SHARE EXPOSURE (2) 57% 22% 7% 6% 2% 1% 1% <1% <1% <1% <1% <1% <1% USD EURO SGD GBP JPY AUD CHF CAD SEK DKK HKD KES HRK < 1% 2.0% <1% < 1% 6% <1% 0.90% < 0.1% 1% 22% 2% 2022 57% $6.
Slide 12: Constant-Currency Analysis
Constant-Currency Analysis Double-Digit Top-Line Growth As Reported Constant-Currency 11.6% 10.0% 8.8% 6.9% 7.2% 6.1% 4.1% 4.2% (1.5%) (5.5%) FY22E / FY21 2Q22 / 2Q21 2Q22 / 2Q21 Stabilized FY22E / FY21 Core FFO per Share Revenue Growth (1) Cash NOI Growth (2) Revenue Growth (3) Growth (3) Note: Con
Slide 13: 2022 Quarterly Cadence
2022 Quarterly Cadence Backlog Supportive Though OPEX Timing and FX Weigh 2022E CORE FFO PER SHARE 1Q22 2Q22 NOI OPEX, Interest, FX 3Q22 4Q22 Growth and Teraco Note: Based on management estimates; actual performance may differ materially. Core FFO and NOI are non-GAAP financial measures. For descrip
Slide 14: Committed to Conservative Capital Structure
Committed to Conservative Capital Structure Maximizing Menu Options, Minimizing Cost Net Debt to Adjusted EBITDA (1) Fixed Charge Coverage Ratio (2) 6.2x 6.2x 5.8x 6.0x 0.2x 6.2x (0.4x) 12% 6% Floating Rate Floating Rate Debt Debt (3) 2Q22 Pro Forma 2Q22 2Q22 Pro Forma 2Q22 Reported Adjustments (3)
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 June 30, 2022 (1)(2) DEBT PROFILE (U.S. $ in billions) 99% Unsecured 5.8 2.2 % Unsecured Secured YEARS Weighted Avg. Weighted Avg. Maturity (1)(2) Coupon (1) 88% $2.0
Slide 16: Q&A
Q&A DIGITAL REALTY | 2Q22 FINANCIAL RESULTS | JULY 28, 2022 | 16
Slide 17: Consistent Execution on Strategic Vision
Consistent Execution on Strategic Vision Delivering Current Results, Seeding Future Growth SUCCESSFUL 2Q22 INITIATIVES 1. Strengthening Connections with Customers Booked $113 million of new business and landed 108 new logos 2. Enhancing our Global Platform Announced our entries into Israel and Barce
Slide 18: Appendix
Appendix DIGITAL REALTY | 2Q22 FINANCIAL RESULTS | JULY 28, 2022 | 18
Slide 19: Digital Transformation Driving Steady Demand
Digital Transformation Driving Steady Demand Global Full-Product Spectrum Provides Broadest Solutions HISTORICAL BOOKINGS TRAILING FOUR-QUARTER AVERAGE ANNUALIZED GAAP BASE RENT $ in millions Space & Power Interconnection $150 $100 $50 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2
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 To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Net Income Available to Common Stockholders to Funds From Operations (FFO) (in thousands, except per share and unit data) (unaudited) Three Months Ended June 30, 2022 June
Slide 23: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Funds From Operations (FFO) to Core Funds From Operations (CFFO) (in thousands, except per share and unit data) (unaudited) Three Months Ended June 30, 2022 June 30, 2021 F
Slide 24: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Net Income Available to Common Stockholders to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA (in thousands) (unaudited) Three
Slide 25: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Same Capital Cash Net Operating Income (in thousands) (unaudited) Three Months Ended June 30, 2022 June 30, 2021 Rental revenues $ 581,213 $ 618,895 Tenant reimbursements -
Slide 26: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Total Debt/Total Enterprise Value QE 6/30/22 Market value of common equity(i) $ 37,784,866 Debt Service Ratio (LQA Adjusted EBITDA/GAAP interest expense plus capitalized interest and less bridge facility fees) Liquidation value of pre