Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q4 2019 Earnings Presentation
27 slides from Digital Realty Trust's earnings presentation, Feb 13, 2020
Slide 1: Digital Realty the trusted foundation | powering your digital ambitions
Digital Realty the trusted foundation | powering your digital ambitions
Slide 2: Navigating the Future: Sustainable Growth for Customers, Shareholders and Employees
Navigating the Future Sustainable Growth for Customers, Shareholders and Employees DIGITAL REALTY | 4Q19 FINANCIAL RESULTS | FEBRUARY 13, 2020 | 2
Slide 3: Leading Interconnection Hub Extends PlatformDIGITAL Reach from Pacific Northwest
Leading Interconnection Hub Extends PlatformDIGITAL™ Reach from Pacific Northwest to Canada, Alaska and APAC Premier Internet Gateway Network Dense Pacific Northwest Hub 150+ Carriers 6th 10 Most Interconnected Access to Subsea Cable Facility in 10,000+ Routes to Asia, Australia North America(1) and
Slide 4: Serving a Social Purpose Delivering Sustainable Growth for All Stakeholders
Serving a Social Purpose Delivering Sustainable Growth for All Stakeholders ENVIRONMENTAL SOCIAL GOVERNANCE €1.4 Billion Committed to enhancing the well- Euro-Denominated being of our stockholders, Enhanced Board of Green Bonds Issued in Directors diversity by January 2020 customers, employees, vend
Slide 5: Strategic Combination with Enhanced Presence in Major European Metro Areas
Strategic Combination with Enhanced Presence in Major European Metro Areas Key Updates January February March April May DLR and INXN shareholder meetings to be Regulatory Review Period held on February 27, 2020 March 9th Initial Expiration of Exchange Offer Clearance received from antitrust authorit
Slide 6: Global Data Center Platform to Host Critical Infrastructure and Interconnect Digital Ecosystems
Global Data Center Platform to Host Critical Infrastructure and Interconnect Digital Ecosystems Enabling Enterprises to Simplify Their Fit for Purpose Infrastructure Expanding Communities of Interest ~50% ~50% Largely Connected Network-Dense, Campuses(1) Performance Sensitive Data Centers(1) Adding
Slide 7: Secular Trends Driving Data Center Demand
Secular Trends Driving Data Center Demand PlatformDIGITAL Poised to Capitalize Digital Transformation Driving Data Center Demand Global Data Center Leader (3) Leaders Equinix Digital Realty NTT Interxion $18T+ $3.9T+ CoreSite Cyxtera Major Rackspace CyrusOne (1) (2) Players Value Added Worldwide IT
Slide 8: Financial Results
Financial Results DIGITAL REALTY | 4Q19 FINANCIAL RESULTS | FEBRUARY 13, 2020 | 8
Slide 9: Four Quarters of Consecutive Growth in New Signings
Four Quarters of Consecutive Growth in New Signings HISTORICAL BOOKINGS ANNUALIZED GAAP BASE RENT(1)(2) $ in millions Space & Power Interconnection #1 $100 ##2 2 #3 $75 $50 $25 $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 4Q19 BOOKINGS BY PRODUCT(1)(2) $52.6 mm $0.6 mm $8.0 mm $1.0 mm $
Slide 10: Social Media Communities of Interest Applications Attracting New Logos
Social Media Communities of Interest Applications Attracting New Logos 215 New Logos in 2019 Highest year on record Advertising & Marketing $7mm Interconnection Signings AI-Powered Tech for Pathology Research $14mm Signings in APAC DIGITAL REALTY | 4Q19 FINANCIAL RESULTS | FEBRUARY 13, 2020 | 10
Slide 11: Top-Line Step Function Healthy Backlog Sets a Solid Foundation
Top-Line Step Function Healthy Backlog Sets a Solid Foundation 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 $5 $6 $38 $57 $2 $8 $26 $26 $16 $28 $18 $9
Slide 12: Cycling Through Peak Vintage Renewals Gradually Improving Mark-to-Market
Cycling Through Peak Vintage Renewals Gradually Improving Mark-to-Market RE-LEASING SPREADS FOURTH QUARTER 2019 FULL YEAR 2019 Rental Rate Change Rental Rate Change -0.6% -1.3% CASH CASH +4.2% +4.4% GAAP GAAP Signed renewal leases Signed renewal leases representing representing $117 million $510 mil
Slide 13: Successfully Managed Largest Expiration Year Ever with Moderate Expirations Going Forward
Successfully Managed Largest Expiration Year Ever with Moderate Expirations Going Forward LEASING EXPIRATIONS (% Annualized Rent) 22.5% 15.6% 15.9% 14.2% 9.8% 8.2% 2019(1) 2020 2021 2022 2023 Thereafter (2) Note: As of December 31, 2019. Excludes month-to-month leases. 1) As of September 30, 2018. D
Slide 14: Putting Exposure in Perspective
Putting Exposure in Perspective Benefits of Scale and Diversification on Display EXPOSURE BY REVENUE(1) CORE FFO/SHARE EXPOSURE(2) USD CAD GBP EURO JPY HKD SGD AUD LATAM 1% 9% 0.3% 3% 2% 76% 2019 0.2% 0.1% $6.65 / Sh BENCHMARK EUR 0% RATES +/- 10% GBP +/- 100 bps 4% 2% +/- 10% 1% EXCHANGE RATES(3) U
Slide 15: Prudently Financed Transaction Enhances Credit Profile
Prudently Financed Transaction Enhances Credit Profile Reflecting a Full-Quarter Contribution (1) (2) Net Debt to Adjusted EBITDA Fixed Charge Coverage Ratio 5.7x 4.6x 0.7x 5.0x 4.1x 0.5x 7% 0% Floating Rate Floating Rate Debt Debt(3) 4Q19 Pro Forma for Forward 4Q19 4Q19 Pro Forma for Forward 4Q19 R
Slide 16: Matching the Duration of Assets and Liabilities
Matching the Duration of Assets and Liabilities Clear Runway on the Left, No Bar Too Tall on the Right DEBT MATURITY SCHEDULE AS OF DECEMBER 31, 2019(1)(2) DEBT PROFILE (U.S. $ in billions) 99% Unsecured Unsecured Secured 6.5 YEARS 2.9% Weighted Avg. Weighted Avg. Maturity(1)(2) Coupon(1) 93% Fixed
Slide 17: Consistent Execution on Strategic Vision
Consistent Execution on Strategic Vision Delivering Current Results, Seeding Future Growth SUCCESSFUL 2019 INITIATIVES 8 1. Expanding Global Platform New Entered Chile and South Korea, agreements with Interxion and Adani to expand in Europe, explore India Countries 2. Recycling Capital $1.4 Bn Sold
Slide 18: Appendix
Appendix DIGITAL REALTY | 4Q19 FINANCIAL RESULTS | FEBRUARY 13, 2020 | 18
Slide 19: Robust Long-Term Demand, Lumpy Near-Term Signings
Robust Long-Term Demand, Lumpy Near-Term Signings Diverse Customer Base + Product Offerings HISTORICAL BOOKINGS TRAILING FOUR-QUARTER AVERAGE ANNUALIZED GAAP BASE RENT(1)(2) $ in millions Space & Power Interconnection $80 $60 $40 $20 $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 4Q19 TRA
Slide 20: Firm Fundamentals Robust Demand, Rational Supply
Firm Fundamentals Robust Demand, Rational Supply NORTH AMERICA EMEA APAC 2,915 1,272 2,410 1,128 882 987 4Q18 4Q19 4Q18 4Q19 4Q18 4Q19 MEGAWATTS COMMISSIONED(1)(2) MEGAWATTS COMMISSIONED(1)(2) MEGAWATTS COMMISSIONED(1)(2) 91% 86% 90% 81% 90% 88% DIGITAL DIGITAL DIGITAL REGION REALTY REGION REALTY RE
Slide 21: Supportive Economic Growth Outlook
Supportive Economic Growth Outlook Levered to Long-Term Secular Demand Drivers 3Q19 CALL CURRENT Better/ October 29, 2019 February 10, 2020 Worse 2020E 2021E Global GDP Growth Forecast (1) 2020E: 3.4% 2020E: 3.3% q 3.3% 3.4% U.S. GDP Growth Forecast (1) 2020E: 2.4% 2020E: 2.0% q 2.0% 1.7% U.S. Unemp
Slide 22: 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 23: Management Statements on Non-GAAP Measures
Appendix Management Statements on Non-GAAP Measures EBITDA and Adjusted EBITDA: We believe that earnings before interest, loss from early extinguishment of debt, income taxes, depreciation and amortization, or EBITDA, and Adjusted EBITDA (as defined below), are useful supplemental performance measur
Slide 24: 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 25: Additional Information and Where to Find It
Appendix Additional Information and Where to Find It On December 6, 2019, Digital Realty Trust, Inc. (“DLR”) filed a Registration Statement on Form S-4 in connection with the transactions contemplated by the Purchase Agreement, which included a proxy statement/prospectus. This communication is for i
Slide 26: 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) Digital Realty Trust, Inc. and Subsidiaries (in thousands, except per share and unit data) Reconc
Slide 27: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Net Debt/LQA Adjusted EBITDA QE 12/31/19 QE 12/31/19 Fixed Charged Ratio (LQA Adjusted EBITDA/total fixed charges) Total debt at balance sheet carrying value $ 10,122,448 Add: DLR share of unconsolidated joint venture debt 591,177 GAA