Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q4 2020 Earnings Presentation
25 slides from Digital Realty Trust's earnings presentation, Feb 11, 2021
Slide 1: 4Q20 Financial Results
Digital Realty the trusted foundation | powering your digital ambitions Global. Connected. Sustainable. 4Q20 FINANCIAL RESULTS FEBRUARY 2021
Slide 2: Navigating the Future
| 2 Navigating the Future Sustainable Growth for Customers, Shareholders and Employees GLOBAL CONNECTED SUSTAINABLE Selling GLOBALLY… Supporting LOCALLY EMEA APAC AMERICAS A Digital Realty and Brookfield Infrastructure JV DIGITAL REALTY | 4Q20 FINANCIAL RESULTS | FEBRUARY 11, 2021
Slide 3: Serving a Social Purpose
| 3 Serving a Social Purpose Delivering Sustainable Growth for All Stakeholders Reached carbon neutral certification for operations in France Committed to reducing direct emissions by 68% and indirect emissions by 24% by 2030 Earned 2020 Nareit Leader in the Light award for fourth consecutive year E
Slide 4: European Platform Expanding Global Platform
| 4 European Platform Expanding Global Platform Supporting Customer Growth Manchester Zagreb Note: As of December 31, 2020. 700+ Connectivity Providers 88,000+ Cross-Connects 17 Metro Areas Marseille Madrid Vienna Zurich Geneva Frankfurt Paris Dusseldorf Dublin London Manchester Brussels Amsterdam C
Slide 5: Combining Leading Platforms in EMEA
| 5 Two-way traffic, with numerous referral wins on both sides of the pond Capitalizing on investment grade balance sheet to lower borrowing costs, fund profitable growth investments, create value and control destiny by securing ownership position Customers Growth Communities of Interest London Data
Slide 6: Data Gravity Driving Data Center Demand
| 6 Data Gravity Driving Data Center Demand PlatformDIGITAL® Poised to Capitalize New York Data Gravity Score 79.6 London Data Gravity Score 167.1 Tokyo Data Gravity Score 80.3 Enterprise Data Growth Driving Data Localization Global MTDC Leader Note: Data Gravity Scores are as defined in Digital Rea
Slide 7: Financial Results
Financial Results | 7 DIGITAL REALTY | 4Q20 FINANCIAL RESULTS | FEBRUARY 11, 2021
Slide 8: Digital Transformation Driving Steady Demand
Digital Transformation Driving Steady Demand Global Full-Product Spectrum Provides Broadest Solutions Note: Darker shading represents interconnection bookings. Fourth-quarter bookings are highlighted in lighter blue. Totals may not add up due to rounding. 1) Other includes Powered Base Building® she
Slide 9: Communities of Interest Attracting New Logos
33% of total bookings from 0-1 MW + interconnection 74% of total bookings outside North America Communities of Interest Attracting New Logos | 9 120 new logos Global Exchange Operator Financial Services Cloud-Based Cyber Provider Travel Retail Video Game Developer Digital Telecom Provider DIGITAL RE
Slide 10: Top-Line Step Function: Healthy Backlog
Top-Line Step Function Healthy Backlog Sets a Solid Foundation | 10 Note: Totals may not add up due to rounding. 1) Amounts shown represent GAAP annualized base rent from leases signed. 2) Amounts shown represent GAAP annualized base rent from leases signed, but not yet commenced, based on estimated
Slide 11: Narrowing the Gap on Cash Re-Leasing Spreads
Cycling Through Peak Vintage Renewals Narrowing the Gap on Cash Re-Leasing Spreads | 11 0-1 MW > 1 MW OTHER (1) TOTAL Signed renewal leases representing $105 million of annualized GAAP rental revenue Signed renewal leases representing $47 million of annualized GAAP rental revenue Signed renewal leas
Slide 12: Effective Economic Risk Mitigation Strategies
Effective Economic Risk Mitigation Strategies Benefits of Scale and Diversification on Display Source: Bloomberg. Note: Totals may not add up due to rounding. 1) As of December 31, 2020. Includes DLR’s share of revenue from unconsolidated joint ventures. 2) Calculation based on annualized base rents
Slide 13: Four Quarter Two-Step: 2021E Core FFO per Share
Four Quarter Two-Step Beat, Dip, Shuffle, Bounce Note: Based on management estimates; actual performance may differ materially. Core FFO and NOI are non-GAAP financial measures. For descriptions and reconciliations to the closest GAAP equivalents, see the Appendix. 2021E CORE FFO PER SHARE | 13 DIGI
Slide 14: Matching the Duration of Assets and Liabilities
DEBT MATURITY SCHEDULE AS OF DECEMBER 31, 2020 (1)(2) (U.S. $ in billions) Matching the Duration of Assets and Liabilities Clear Runway on the Left, No Bar Too Tall on the Right 98% Unsecured Unsecured Secured Fixed Floating USD Euro GBP Other 90% Fixed 52% Euro 6.9 YEARS Weighted Avg. Maturity (1)(
Slide 15: Consistent Execution on Strategic Vision
Consistent Execution on Strategic Vision Delivering Current Results, Seeding Future Growth | 15 SUCCESSFUL 4Q20 INITIATIVES 1.Strengthening Connections with Customers Delivered bookings with high-quality product mix, geographic split, new logos and volume 2.Extending Our Global Platform Entered Gree
Slide 16: Appendix
Appendix | 16 DIGITAL REALTY | 4Q20 FINANCIAL RESULTS | FEBRUARY 11, 2021
Slide 17: Robust Long-Term Demand, Lumpy Near-Term Signings
Robust Long-Term Demand, Lumpy Near-Term Signings Diverse Customer Base HISTORICAL BOOKINGS TRAILING FOUR-QUARTER AVERAGE ANNUALIZED GAAP BASE RENT $ in millions 4Q20 TRAILING FOUR-QUARTER AVERAGE BOOKINGS 0-1 MW $24.3 mm > 1 MW $67.5 mm OTHER (1) $6.0 mm INTERCONNECTION $11.5 mm TOTAL BOOKINGS $109
Slide 18: Firm Fundamentals: Robust Demand, Rational Supply
Firm Fundamentals Robust Demand, Rational Supply 1) Management estimates, based on a sub-set of Digital Realty metros (North America: Northern Virginia, Chicago, Dallas, Silicon Valley, New Jersey, Phoenix and Toronto; EMEA: Amsterdam, Dublin, Frankfurt, and London; APAC: Melbourne, Osaka, Singapore
Slide 19: Management Statements on Non-GAAP Measures
Appendix Management Statements on Non-GAAP Measures | 19 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 mea
Slide 20: Forward-Looking Statements
Appendix Forward-Looking Statements | 20 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 outcom
Slide 21: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent | 21 DIGITAL REALTY | 4Q20 FINANCIAL RESULTS | FEBRUARY 11, 2021 Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Net Income Available to Common Stockholders to Funds From Operations (FFO) (in thousands, except per share
Slide 22: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent | 22 DIGITAL REALTY | 4Q20 FINANCIAL RESULTS | FEBRUARY 11, 2021 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 d
Slide 23: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent | 23 DIGITAL REALTY | 4Q20 FINANCIAL RESULTS | FEBRUARY 11, 2021 Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Net Income Available to Common Stockholders to Earnings Before Interest, Taxes, Depreciation and Amortizati
Slide 24: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent | 24 DIGITAL REALTY | 4Q20 FINANCIAL RESULTS | FEBRUARY 11, 2021 Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Same Capital Cash Net Operating Income (in thousands) (unaudited) Three Months Ended Twelve Months Ended De
Slide 25: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent | 25 Note: For quarter ended December 31, 2020 DIGITAL REALTY | 4Q20 FINANCIAL RESULTS | FEBRUARY 11, 2021 Total Debt/Total Enterprise Value Market value of common equity(i) 40,225,753 $ Liquidation value of preferred equity(ii) 956,2