Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q4 2023 Earnings Presentation
28 slides from Digital Realty Trust's earnings presentation, Feb 15, 2024
Slide 1: 4Q23 Financial Results
4Q23 FINANCIAL RESULTS February 15, 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 STRATEGY TO FUEL GROWTH 5,000+ 220,000 Customers Cross Connects Strengthen our Integrate & Diversify and Customer Value Innovate for our Bolster Capital 50+ 300+ Proposition Customers Sources Metros Data Centers $12B
Slide 3: Diversify & Bolster Capital Sources
Diversify & Bolster Capital Sources Evolving Capital Sources $7 Billion CAPITAL TO MEET CUSTOMER DEMAND $10 Billion of Non-Core Asset Sales & Hyperscale Private Capital Non-Core Dispositions Stabilized Hyperscale $2 Billion Private Capital Development Hyperscale Private Capital $150 Million 1Q23 2Q2
Slide 4: Connected Data Communities
Connected Data Communities Strong Interconnection Revenue 4Q23 Results 2023 Full-Year Results 134 506 new logos new logos $53M $204M total 4Q bookings from total 2023 bookings from 0-1 MW + Interconnection 0-1 MW + Interconnection 48% 44% of total 4Q bookings from of total 2023 bookings from 0-1 MW
Slide 5: Offering a Global Data Center Platform
Offering a Global Data Center Platform Global Capacity to Meet Growing Customer Demand Global Capacity 237 MW delivered in 2023 ~2,500 MW total capacity in place >3,000 MW buildable IT capacity Note: As of December 31, 2023. 4Q23 Financial Results 5
Slide 6: 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 7: 4Q23 Financial Results
4Q23 Financial Results 4Q23 Financial Results 7
Slide 8: Healthy Demand Across Regions and Products
HISTORICAL BOOKINGS Healthy Demand ANNUALIZED GAAP BASE RENT $ in millions Across Regions and Products $150.0 AI lifts demand $100.0 • Strong 0-1MW + $50.0 Interconnection signings • Record High >1 MW $0.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 average leasing rate 4Q23 BOOKINGS 0-1 MW IN
Slide 9: Record Backlog
BACKLOG ROLL-FORWARD (1) COMMENCEMENT TIMING (2) Record Backlog $ in millions $ in millions Bodes Well for Future Growth $97M $84M $92M $75M $495M $27M $495M $482M $145M $22M • Record Backlog $120M of $495 Million $421M $426M $322M $426M • Two-Thirds to $285M Commence in 2024 3Q23 Backlog Signed Com
Slide 10: Strong Pricing Environment
Strong Pricing 4Q23 RENEWAL SPREADS Environment Robust Renewal Spreads 0-1 MW > 1 MW OTHER (1) TOTAL RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE 5.9% 12.8% 4.4% 8.2% • Highest Cash Renewal CASH CASH CASH CASH Spreads since 2015 5.6% 20.0% 18.6% 10.6% GAAP GAAP GAAP GA
Slide 11: Revenue Exposure by Currency
EXPOSURE BY REVENUE (1) 50% 25% 6% 6% 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 25% 2% Fourth Quarter 50% <1% 2% <1% <1% 5% <1% • Local Operations Funded 3% <1% in Local Currencies act as 4% 1% a Natural
Slide 12: Significant De-Levering
Significant De-Levering Capital Recycling and ATM Issuance Bolster Liquidity Net Debt to Adjusted EBITDA(1) $4 Billion (2) Pro Forma Liquidity 1.3x Total Reduction in Leverage Stable December 14 5.8x 2023 (2) Pro Forma Leverage Credit Outlook May 5 <$1 Billion Debt Maturities in 2024 2023 Negative (
Slide 13: Matching the Duration of Assets and Liabilities
$ Matching the Duration of Assets and Liabilities ₣ Modest Near-Term Maturities, Well-Laddered Debt Schedule DEBT PROFILE DEBT MATURITY SCHEDULE AS OF DECEMBER 31, 2023 (1)(2) (U.S. $ in billions) $2.7 Unsecured $3.3 97% Secured 4.4 YEARS 2.7 % Unsecured Weighted Avg. € Weighted Avg. Maturity (1)(2)
Slide 14: 2024 Financial Guidance
2024 Financial Guidance (1) Actual 2023 Full Year 2024 Total Revenue $5,477 $5,550 – $5,650 Adjusted EBITDA $2,750 $2,800 – $2,900 Rental Rates on Renewals Leases (Cash) 6.8% 4.0% – 6.0% Year-End Portfolio Occupancy 81.7% +100 – 200 bps Same-Capital Cash NOI Growth 7.5% 2.0% – 3.0% Core FFO per Shar
Slide 15: Q&A
Q&A Global. Connected. Sustainable. 4Q23 Financial Results 15
Slide 16: Positioned for Long-Term Sustainable Growth
Positioned for Long-Term Sustainable Growth 2024 Setting the Stage to Meet Next Wave of Customer Demand Balance Accelerating Platform & Sheet Opportunity Capacity to Positioned Ahead Drive For Growth Returns Over $12 Billion(1) of Capital and Continued Growth in the Global Footprint in Core Commitme
Slide 17: Appendix
Appendix 4Q23 Financial Results 17
Slide 18: 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 19: 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 20: Reconciliation of Non-GAAP Items
Reconciliation of Digital Realty Trust, Inc. and Subsidiaries Non-GAAP Items Reconciliation of Net Income Available to Common Stockholders to Funds From Operations (FFO) (in thousands, except per share and unit data) (unaudited) To Their Closest GAAP Three Months Ended December 31, 2023 December 31,
Slide 21: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items Digital Realty Trust, Inc. and Subsidiaries To Their Closest GAAP Reconciliation of Funds From Operations (FFO) to Core Funds From Operations (CFFO) (in thousands, except per share and unit data) Equivalent (unaudited) Three Months Ended Twelve Months Ended December
Slide 22: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Net Income Available to Common Stockholders to Earnings To Their Closest GAAP Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA (in thousands) Equivalent (unaudited) Three
Slide 23: Reconciliation of Non-GAAP Items
Reconciliation of Digital Realty Trust, Inc. and Subsidiaries Non-GAAP Items Reconciliation of Same Capital Cash Net Operating Income (in thousands) (unaudited) To Their Closest GAAP Three Months Ended December 31, 2023 December 31, 2022 Twelve Months Ended December 31, 2023 December 31, 2022 Equiva
Slide 24: Reconciliation of Non-GAAP Items
Total Debt/Total Enterprise Value QE 03/31/23 Debt Service Ratio (LQA Adjusted EBITDA/GAAP interest expense plus capitalized interest and less bridge Reconciliation of Market value of common equity(i) $ 29,272,861 facility fees) Liquidation value of preferred equity(ii) 755,000 Total GAAP interest e
Slide 25: Reconciliation of Non-GAAP Items
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 26: Reconciliation of Non-GAAP Items
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 27: Reconciliation of Non-GAAP Items
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 28: Thank you
r Thank you FN DIGITAL Lv REALTY.