Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Investor Presentation (January 2020)
43 slides from Digital Realty Trust's investor presentation, Jan 8, 2020
Slide 1: Investor Presentation January 2020
Exhibit 99.1 Global. Connected. Sustainable. INVESTOR PRESENTATION JANUARY 2020 Digital Realty the trusted foundation | powering your digital ambitions Note: This document is not an offer to sell or solicitation to buy securities of Digital Realty Trust, Inc. or its subsidiaries. Any offers to sell
Slide 2: Agenda
AGENDA DIGITAL REALTY GLOBAL PLATFORM 1 Leading Global Data Center Platform with Sustainable Competitive Advantages INDUSTRY LEADING SUSTAINABILITY Dedicated to Sustainability Initiatives as an Integral Part of 2 Digital Realty’s Corporate Strategy CONSERVATIVE FINANCIAL STRATEGY Committed to Mainta
Slide 3: Digital Realty Global Platform
Digital Realty Global Platform Leading Global Data Center Platform with Sustainable Competitive Advantages DIGITAL REALTY | 3Digital Realty Global Platform Leading Global Data Center Platform with Sustainable Competitive Advantages DIGITAL REALTY | 3
Slide 4: Global provider dedicated to the full customer spectrum
GLOBAL provider dedicated to the full customer spectrum from ENTERPRISE colocation to HYPERSCALE 2,000+ 2,000+ 265 ~80k ~135k ~55k Digital Realty Interxion (1) DATA CENTERS Digital Realty TOTAL Interxion CUSTOMERS CUSTOMERS (2) CROSS-CONNECTS INTERCONNECTION COLOCATION SCALE HYPERSCALE (5) EQUITY &
Slide 5: Serving a Social Purpose Delivering Sustainable Growth
Serving a Social Purpose Delivering Sustainable Growth for All Stakeholders ENVIRONMENTAL SOCIAL GOVERNANCE 2019 NAREIT Committed to enhancing the well- Minimum stock Leader in the Light being of our stockholders, ownership requirements Award for Data Centers 2015 customers, employees, vendors, inst
Slide 6: Next Generation Drivers: The Second Wave of Cloud
Next Generation Drivers The Second Wave of Cloud (1) (2) ARTIFICIAL INTELLIGENCE MARKET FORECAST INTERNET OF THINGS (IoT) MARKET FORECAST $90 (IoT Units Installed in millions) ($ in billions) $71 20,415 $53 45% 34% CAGR (‘16 - ‘25) CAGR (‘16 - ‘20) $38 11,197 $26 8,381 $17 6,382 $11 $7 $5 $3 2016 20
Slide 7: Covering the Waterfront
Covering the Waterfront Over 250 Data Centers across more than 40 Metro Areas Seattle Minneapolis / St. Paul Toronto Portland Boston New York Metro San Francisco Stockholm Denver Northern Silicon Valley Chicago Virginia Seoul Los Angeles Phoenix Tokyo Copenhagen Charlotte Osaka Dallas Atlanta Manche
Slide 8: Strategic Transaction to Position Combined Company as Leading Global Provider
Strategic Transaction to Position Combined Company as Leading Global Provider of Data Center Solutions A Digital Realty Company HIGHLY STRATEGIC AND LEADERSHIP AND COMPLEMENTARY COMBINATION CORPORATE GOVERNANCE • Digital Realty CEO A. William Stein will serve as CEO of the combined company Globally
Slide 9: Growing EMEA Data Center Market Opportunity
Growing EMEA Data Center Market Opportunity: Substantial Opportunity Ahead in EMEA ILLUSTRATIVE DATA CENTER DEMAND North Europe America Interxion presence No direct presence United States 497mm 626mm Population Population Netherlands $22Tn $20Tn UK 2018 GDP 2018 GDP Ireland France 520+ 400+ Germany
Slide 10: Current Interxion Presence
Current Interxion Presence 54 (1) Data Centers 13 Metro Areas Communities of Interest Deliver Significant Customer Value 11 CONNECTIVITY PLATFORMS ENTERPRISES Countries 295MW (2) Equipped Capacity 900+ (3) Employees Note: Figures as of September 30, 2019 for Interxion, unless noted otherwise. 1) Rep
Slide 11: Combined EMEA Presence: Complementary European Footprint
Manchester| Combined Stockholm| 38k NRSF EMEA 13MW Dublin| Presence 17MW Copenhagen| A Digital Realty Company 8MW London| 107MW Brussels| Amsterdam| 7MW 99MW Paris| 26MW Dusseldorf| 4MW Marseille| 30+ 94 23MW CLOUD ON-RAMPS (1) Frankfurt| Data Centers 90MW Indicates presence Vienna| of one or more 2
Slide 12: Globally Expanding Connected Communities of Interest
Globally Expanding Connected Communities of Interest MARSEILLE AMSTERDAM LIVE EVENTS TELECOMS CONTENT COMMS HUB HUB SUBSEA SATELLITE CABLES COMMS GAMING CLOUD WEB HOSTING DIGITAL AGENCIES 150 11 120 AMS-IX Carriers CDNs & Content Network Internet Platforms Providers Exchange FRANKFURT LONDON IT SERV
Slide 13: Enhances Ability to Serve Multinational Customers on a Global Scale
Enhances Ability to Serve Multinational Customers on a Global Scale Enhanced capabilities to solve the public- and 2,000+ 2,000+ hybrid-cloud requirements of a global Digital Realty Customers Interxion Customers customer base Note: Data as of September 30, 2019 for Digital Realty Trust and Interxion
Slide 14: Diverse and Global Platform: Benefits of Size and Scale
Diverse and Global Platform Benefits of Size and Scale on Display (1) (3) SIZE AND ADJUSTED EBITDA MARGIN TOTAL ENTERPRISE VALUE ($ in Billions) DLR + INXN EQIX CONE QTS COR $60 Lighter Shading Denotes % of Revenue Outside North America (1) Margin % $47 60% APAC Most comprehensive $10 58% $7 $5 prod
Slide 15: Strong Combined Capitalization and Balance Sheet
Strong Combined Capitalization and Balance Sheet Enhanced Access to and Overall Cost of Capital Accretive to long-term growth and expected to further improve balance sheet strength Summary Capitalization Estimated (1) Current Price Current Price Combined Stock Price (As of 1/3/2020) $84.36 $119.94 $
Slide 16: Proven Track Record of Sustainable Growth
Proven Track Record of Sustainable Growth Disciplined Financial Management through the Cycle 2009 Combined Company Better/ Worse % Change (1) Properties / Data Centers 82 265 223% p (2) Total Enterprise Value $6.6 billion $46.8 billion 609% p th th RMZ Rank 15 6 10 levels p Fortune 50 Software Top T
Slide 17: Industry Leading Sustainability
INDUSTRY LEADING SUSTAINABILITY Dedicated to Sustainability Initiatives as an Integral Part of Digital Realty’s Corporate Strategy DIGITAL REALTY | 17INDUSTRY LEADING SUSTAINABILITY Dedicated to Sustainability Initiatives as an Integral Part of Digital Realty’s Corporate Strategy DIGITAL REALTY | 17
Slide 18: Industry Leading Sustainability Track Record and Commitment
Industry Leading Sustainability Track Record and Commitment to Leading Practices Management and Award-Winning Thought Leadership Industry-Leading Track Record of Organizational Data Center Designs and Innovation in Clean Energy Sustainable Project Commitment to and Third-Party Energy Efficiency Solu
Slide 19: Commitment to Sustainability: A Strong Foundation and Consistent Progress
Commitment to Sustainability A Strong Foundation and Consistent Progress Our sustainability work is coordinated across our business to inform our strategy, align with customer priorities, and engage stakeholders GREEN BUILDINGS RENEWABLE ENERGY ENERGY CONSERVATION More completed green building Leadi
Slide 20: Commitment to Sustainability: Supporting Customers' Sustainability Goals
Commitment to Sustainability Supporting Customers’ Sustainability Goals (1) 100% Renewable Energy Goals Customer Sustainability Programs Half of Digital Realty’s Top 20 Customers Significant Overlap with Digital Realty’s Programs • 13 of our top-20 customers have renewable energy (1) goals • Half of
Slide 21: European Sustainability Initiatives
European Sustainability Initiatives ~$265mm of Green Spend and 100% Sourced Renewable Energy EUROPEAN BREEAM-CERTIFIED GREEN BUILDINGS DATA CENTER FOOTPRINT ~$265mm INDUSTRY LEADING Construction Green Spend in EMEA SUSTAINABILITY Unit 1, Power Avenue, Manor Royal, Crawley, Phase 1 Surrey, UK Grange
Slide 22: Green Bond Experience
Green Bond Experience Strong Track Record JUNE 2015 GREEN BOND First Data Center $493mm Total Allocation Industry Green Bond (Net Proceeds from Issuance) “Sustainalytics is of the opinion that the Digital Realty Green Bond Framework is JANUARY 2019 GREEN BOND credible and impactful, and aligns with
Slide 23: Conservative Financial Strategy
Conservative Financial Strategy Committed to Maintaining a Strong Investment Grade Balance Sheet DIGITAL REALTY | 23Conservative Financial Strategy Committed to Maintaining a Strong Investment Grade Balance Sheet DIGITAL REALTY | 23
Slide 24: Committed to Conservative Capital Structure
Committed to Conservative Capital Structure Growing Enterprise Value While Improving Credit Metrics CREDIT METRICS CAPITAL STRUCTURE (1) (2) (2)(3) Net Debt / LQA Adjusted EBITDA Fixed Charge Coverage 5.5x 5.3x 5.2x 5.2x 5.2x 5.1x 5.0x 5.0x 4.8x 4.4x 4.3x 4.3x 4.2x 4.2x 27% 4.1x 4.1x Debt Equity Deb
Slide 25: 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 PROFILE (1)(2) AS ADJUSTED DEBT MATURITY (U.S. $ in billions) Pro Rata Share of JV Debt Secured Mortgage Debt Unsecured Senior Notes (3) Unsecured Term Loan Unsecured Credit Facilities Unsecur
Slide 26: Stringent Acquisition Criteria
Stringent Acquisition Criteria Market Fundamentals, Accessibility, Stability and Risk 2012 2015 2016 2017 2018 2019 Sentrum European DuPont Fabros Portfolio Telx Acquisition Portfolio Technology Ascenty Interxion Three assets in London 20 assets in 13 metro Eight assets in Europe 12 assets and six E
Slide 27: Consistent Access to Capital
Consistent Access to Capital Portfolio Growth Financed by Match-Funding Access to Capital in Multiple Currencies Allows Digital Realty to Match-Fund across Global Portfolio (2) THE FULL MENU OF CAPITAL OPTIONS EQUITY RAISED SINCE 2009 TOP 25 U.S. REIT BOND ISSUERS Amount USD in millions USD in billi
Slide 28: Credit Metrics Compare Favorably to Blue Chip REITs
Credit Metrics Compare Favorably to Blue Chip REITs Strong Credit Statistics in Relation to International Comparables (1) 15.0x Net Debt / Adjusted EBITDA 13.7x 10.6x 10.5x 10.2x 10.0x 8.4x 5.8x (3) 5.4x 5.2x 5.0x 5.1x 4.1x 3.9x 5.0x 0.0x PLD AMT DLR SPG WPC CONE WELL Klepierre Hammerson Vonovia Uni
Slide 29: Disciplined Financial Strategy: Key Credit Highlights
Disciplined Financial Strategy Key Credit Highlights 1. Leading Global Data Center Platform 265 Growing worldwide demand from a diversified customer base (1) Data Centers Globally 2. Sustainable Competitive Advantages New supply requires significant capital and specialized expertise 2,000+ 2,000+ Di
Slide 30: Appendix
Appendix DIGITAL REALTY | 30Appendix DIGITAL REALTY | 30
Slide 31: Sustainability Case Study: Franklin Park Data Center Campus
Sustainability Case Study Franklin Park Data Center Campus Efficiency Results Franklin Park, IL INDUSTRY LEADING 9.8mm SUSTAINABILITY kWh Annualized Energy Savings 1.3PUE vs. 1.5 PUE Baseline $687k Rebate Check from Local Utility DIGITAL REALTY | 31Sustainability Case Study Franklin Park Data Center
Slide 32: Sustainability Case Study: Focus On Additionality
Sustainability Case Study Focus On Additionality Commitment to Renewable Energy 20MW Solar 324MW Nameplate Capacity of Contracted Renewables 1,00,000 MWh of Annual Output 88MW and 76MW Wind 740,000 Metric Tons of CO Emissions Avoided 2 DIGITAL REALTY | 32Sustainability Case Study Focus On Additional
Slide 33: Sustainability Case Study: Energy and Water Conservation
Sustainability Case Study Energy and Water Conservation EFFICIENCY RESULTS 100 Delawanna Avenue Clifton, New Jersey 3.8mm Liters of Water Conserved 10% Energy Savings 545kg Build-Up Removed from Cooling Towers $100k Annualized Cost Reductions DIGITAL REALTY | 33Sustainability Case Study Energy and W
Slide 34: Additional Information and Where to Find It
Appendix Additional Information Additional Information and Where to Find It This communication is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any proxy, vote or approval with respect to the proposed
Slide 35: Note Regarding Forward-Looking Statements
Appendix Additional Information Note Regarding Forward-Looking Statements The information included in this presentation contains forward looking statements. Such forward-looking statements include statements relating to: the satisfaction of closing conditions and completion of the proposed transacti
Slide 36: 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 37: Reconciliation of Non-GAAP Items: Net Debt/LQA Adjusted EBITDA
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Net Debt/LQA Adjusted EBITDA Net Debt/LQA Adjusted EBITDA – As Adjusted QE 12/31/2018 QE 12/31/2018 in 000’s Total debt at balance sheet carrying value $ 11,101,479 Net Debt as of December 31, 2018 $ 11,517,315 Add: DLR share of uncon
Slide 38: Reconciliation of Non-GAAP Items: Net Debt/LQA Adjusted EBITDA
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Net Debt/LQA Adjusted EBITDA Net Debt/LQA Adjusted EBITDA – As Adjusted in 000’s QE 3/31/2019 QE 3/31/2019 Total debt at balance sheet carrying value $ 10,279,656 Net Debt as of March 31, 2019 $ 10,590,945 Add: DLR share of unconsolid
Slide 39: Reconciliation of Non-GAAP Items: Net Debt/LQA Adjusted EBITDA
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Net Debt/LQA Adjusted EBITDA - As Adjusted Net Debt/LQA Adjusted EBITDA QE 06/30/19 QE 06/30/19 in 000’s Net Debt as of June 30, 2019 $ 1 1,539,282 Total debt at balance sheet carrying value $ 1 0,842,578 Add: DLR share of unconsolida
Slide 40: Reconciliation of Non-GAAP Items: Net Debt/LQA Adjusted EBITDA
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Net Debt/LQA Adjusted EBITDA Net Debt/LQA Adjusted EBITDA - As Adjusted QE 09/30/19 QE 09/30/19 in 000’s Total debt at balance sheet carrying value $ 10,924,035 Net Debt as of September 30, 2019 $ 11,676,368 Add: DLR share of unconsol
Slide 41: Reconciliation of Non-GAAP Items: Interxion Net Debt / LQA Adjusted EBITDA
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Interxion Net Debt / LQA Adjusted EBITDA in 000’s 9/30/2019 Total debt $ 1 ,413,310 Add: Capital lease obligations 56,266 Less: Unrestricted cash ( 229,912) Net Debt as of September 30, 2019 $ 1 ,239,663 (i) Net Debt / LQA Adjusted EB
Slide 42: Reconciliation of Non-GAAP Items: Pro Forma Net Debt / Adjusted EBITDA
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Pro Forma Net Debt / Pro Forma Annualized Adjusted EBITDA Pro Forma Net Debt/ Pro Forma Annualized Adjusted EBITDA - As Adjusted PF 09/30/19 PF 09/30/19 in 000’s Total debt at balance sheet carrying value $ 10,924,035 Net Debt as of S
Slide 43: Reconciliation of Non-GAAP Items: Reconciliation of EBITDA
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Reconciliation of EBITDA Pro Forma Quarterly Period Ending in 000's Sept '19 YTD 3Q19 2Q19 1Q19 4Q18 3Q18 2Q18 1Q18 4Q17 Net income (loss) available to common stockholders $ 180,696 $ 49,827 $ 31,738 $ 95,869 $ 31,230 $ 67,268 $ 65,13
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