Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q4 2021 Earnings Presentation
23 slides from Digital Realty Trust's earnings presentation, Feb 17, 2022
Slide 1: Global. Connected. Sustainable. 4Q21 Financial Results
Global. Connected. Sustainable. 4Q21 FINANCIAL RESULTS FEBRUARY 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 A Digital Realty and Brookfield Infrastructure JV DIGITAL REALTY | 4Q21 FINANCIAL RESULTS | FEBRUARY 17, 2022 | 2
Slide 3: Serving a Social Purpose
Serving a Social Purpose Delivering Sustainable Growth for All Stakeholders ENVIRONMENTAL SOCIAL GOVERNANCE Formalized ESG oversight Achieved five-star under the Nominating & Published EEO-1 report, providing Corporate Governance GRESB rating, ranked #1 in Tech / Science category transparency on the
Slide 4: Expanding Global Platform Supporting Customer Growth
Johannesburg Cape Town Expanding Global Platform Supporting Customer Growth Hong Kong Frankfurt Lagos Global Platform 178,000+ 4,000+ 50 Cross-Connects Customers Metro Areas Note: As of December 31, 2021 DIGITAL REALTY | 4Q21 FINANCIAL RESULTS | FEBRUARY 17, 2022 | 4
Slide 5: Data Gravity Driving Data Center Demand
Data Gravity Driving Data Center Demand Seoul PlatformDIGITAL® Poised to Capitalize Data Gravity CAGR (1) Frankfurt 152% Data Gravity CAGR (1) New York 144% Data Gravity CAGR (1) 132% Singapore Zurich Data Gravity Data Gravity CAGR (1) London CAGR (1) 200% Data Gravity 135% Mumbai CAGR (1) Data Grav
Slide 6: Financial Results
Financial Results DIGITAL REALTY | 4Q21 FINANCIAL RESULTS | FEBRUARY 17, 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 $150 $100 $50 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 4Q21 BOOKINGS 0-1 MW > 1 MW OTHER (1) INTERCONNECTION TOTAL BOOKIN
Slide 8: Attracting New Logos
Semiconductor Trading Connected Data Communities Manufacturer Platform Attracting New Logos 131 new logos Aerospace Insurance Manufacturing Brokerage $52 million of total 4Q bookings from 0-1 MW + interconnection Energy Ivy League Provider University 68% of bookings outside the Americas Note: For qu
Slide 9: 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 $24M Note: Totals may not add up due to
Slide 10: Cycling Through Peak Vintage Renewals
Cycling Through Peak Vintage Renewals Narrowing the Gap on Cash Re-Leasing Spreads 4Q21 RE-LEASING SPREADS 0-1 MW > 1 MW OTHER (1) TOTAL RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE 0.7% -14.0% 4.1% -3.9% CASH CASH CASH CASH 1.3% -11.8% 10.2% -2.6% GAAP GAAP GAAP GAAP
Slide 11: Effective Economic Risk Mitigation Strategies
Effective Economic Risk Mitigation Strategies Benefits of Scale and Diversification on Display EXPOSURE BY REVENUE (1) CORE FFO/SHARE EXPOSURE (2) 61% 1% 7% 23% <1% <1% 4% 1% 1% 1% 1% <1% <1% <1% USD CAD GBP EURO JPY HKD SGD AUD SEK DKK CHF KES HRK KRW 1% 7% 1% 1% 2.0% 0.5% 0.1% 23% 1% 61% <1% <1% <
Slide 12: Committed to Conservative Capital Structure
Committed to Conservative Capital Structure Maximizing Capital Menu Options, Minimizing Cost Net Debt to Adjusted EBITDA (1) Fixed Charge Coverage Ratio (2) 5.7x 5.4x 6.1x 5.7x 0.3x -0.4x 6% 3% Floating Rate Floating Rate Debt Debt (3) 4Q21 Pro Forma 4Q21 4Q21 Pro Forma 4Q21 Reported Adjustments (3)
Slide 13: 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, 2021 (1)(2) DEBT PROFILE (U.S. $ in billions) Unsecured 99% Secured 6.4Weighted Avg. YEARS 2.1 % Weighted Avg. Unsecured Maturity (1)(2) Coupon (1) Fixed $
Slide 14: Consistent Execution on Strategic Vision
Consistent Execution on Strategic Vision Delivering Current Results, Seeding Future Growth SUCCESSFUL 2021 INITIATIVES 1. Strengthening Connections with Customers Booked $500 million of new business and landed nearly 500 new logos 2. Enhancing our Global Platform Established Digital Realty as the le
Slide 15: Appendix
Appendix DIGITAL REALTY | 4Q21 FINANCIAL RESULTS | FEBRUARY 17, 2022 | 15
Slide 16: 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 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 4Q21 TRAILING FOUR-QUARTER AVERAGE BOOKINGS 0-1 MW >
Slide 17: 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 18: 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 19: Reconciliation of Net Income to FFO
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 Twelve Months Ended
Slide 20: Reconciliation of FFO to Core FFO
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 Twelve Months Ended December
Slide 21: Reconciliation to EBITDA and Adjusted EBITDA
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 22: Reconciliation of Same Capital Cash NOI
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 Twelve Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31,
Slide 23: Total Debt to Total Enterprise Value
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Total Debt/Total Enterprise Value QE 12/31/21 Market value of common equity(i) $51,353,636 Debt Service Ratio (LQA Adjusted EBITDA/GAAP interest expense plus capitalized interest and less bridge facility fees) Liquidation value of pre