Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q3 2021 Earnings Presentation
23 slides from Digital Realty Trust's earnings presentation, Oct 26, 2021
Slide 1: 3Q21 Financial Results
Global. Connected. Sustainable. 3Q21 FINANCIAL RESULTS OCTOBER 2021 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 GLOBAL CONNECTED SUSTAINABLE Selling GLOBALLY… Supporting LOCALLY AMERICAS EMEA APAC A Digital Realty and Brookfield Infrastructure JV DIGITAL REALTY | 3Q21 FINANCIAL RESULTS | OCTOBER 26, 2021 | 2
Slide 3: Serving a Social Purpose
Serving a Social Purpose Delivering Sustainable Growth for All Stakeholders ENVIRONMENTAL SOCIAL GOVERNANCE Formalized ESG oversight Ranked #1 in under the Nominating & Published EEO-1 report, providing 2021 tech/science sector Corporate Governance transparency on the racial and gender Committee and
Slide 4: Expanding Global Platform Supporting Customer Growth
Seoul Mumbai Expanding Global Platform Supporting Customer Growth Abuja Maputo Lagos Global Platform 174,000+ 4,000+ 50 Cross-Connects Customers Metro Areas Note: As of September 30, 2021. DIGITAL REALTY | 3Q21 FINANCIAL RESULTS | OCTOBER 26, 2021 | 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 | 3Q21 FINANCIAL RESULTS | OCTOBER 26, 2021 | 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 3Q21 BOOKINGS 0-1 MW > 1 MW OTHER (1) INTERCONNECTION TOTAL BOOKIN
Slide 8: Connected Data Communities Attracting New Logos
Semiconductor Fintech Connected Data Communities Manufacturer Services Attracting New Logos 140 record new logos Autonomous Cybersecurity Driving Tech Platform 39% of total bookings from 0-1 MW + interconnection Energy Public Provider University 49% of total bookings outside the Americas Note: For q
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 $14M $10M $61M $84M $7M $36M $24M $36M $
Slide 10: Cycling Through Peak Vintage Renewals
Cycling Through Peak Vintage Renewals Narrowing the Gap on Cash Re-Leasing Spreads 3Q21 RE-LEASING SPREADS 0-1 MW > 1 MW OTHER (1) TOTAL RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE 0.9% -15.6% 6.9% -5.6% CASH CASH CASH CASH 1.3% -11.7% 11.2% -3.3% 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) USD CAD GBP EURO JPY HKD SGD AUD SEK DKK CHF KES 2.0% 2021 0.6% 0.1% $6.53 / Sh BENCHMARK GBP RATES +/- 10% EUR +/- 100 bps +/- 10% EXCHANGE RATES (3) 3Q
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) 6.0x 5.8x 0.2x 6.0x 5.6x -0.4x 8% 3% Floating Rate Floating Rate Debt Debt (3) 3Q21 Pro Forma 3Q21 3Q21 Pro Forma 3Q21 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 SEPTEMBER 30, 2021 (1)(2) DEBT PROFILE (U.S. $ in billions) 98% Unsecured 6.3 2.2 % Unsecured Secured YEARS Weighted Avg. Weighted Avg. Maturity (1)(2) Coupon (1) 92% F
Slide 14: Consistent Execution on Strategic Vision
Consistent Execution on Strategic Vision Delivering Current Results, Seeding Future Growth SUCCESSFUL 3Q21 INITIATIVES 1. Strengthening Connections with Customers Landed record new logos, effectively navigated supply chain disruptions 2. Enhancing our Global Platform Invested in new and existing glo
Slide 15: Appendix
Appendix DIGITAL REALTY | 3Q21 FINANCIAL RESULTS | OCTOBER 26, 2021 | 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 $150 $100 $50 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 3Q21 TRAILING FOUR-QUARTER AVERAGE B
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 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 Nine Months Ended S
Slide 20: 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 Nine Months Ended September 3
Slide 21: 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 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 Same Capital Cash Net Operating Income (in thousands) (unaudited) Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30
Slide 23: 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 9/30/21 Debt Service Ratio (LQA Adjusted EBITDA/GAAP interest expense plus capitalized interest and less bridge facility (i) Market value of common equity $ 41,939,737 fees) Liquidation value of pr