Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q1 2016 Earnings Presentation
22 slides from Digital Realty Trust's earnings presentation, Apr 28, 2016
Slide 1: April 28, 2016
April 28, 2016
Slide 2: The Next Horizon: Three-Year Guideposts
The Next Horizon Three-Year Guideposts 1 SUPERIOR RETURNS Deliver superior risk-adjusted total shareholder returns 2 CAPITAL ALLOCATION Prudently allocate capital to opportunistically extend global campus footprint 3 PRODUCT OFFERINGS Our Focus Drive higher returns on the asset base by diversifying
Slide 3: U.S. Major Market Data Center Supply
U.S. Major Market Data Center Supply (1) Supply Steady in Major U.S. Markets in megawatts 1Q16 Current Supply (1) New Construction Inventory (2) Digital Realty Inventory 60 40 20 - Boston Chicago Dallas Houston N Virginia NY Metro Phoenix Silicon Valley in megawatts 4Q15 Current Supply (1) New Const
Slide 4: Data Center Supply in Perspective
Data Center Supply in Perspective The Fundamentals Glass is Half-Full NORTHERN VIRGINIA DALLAS CHICAGO Market Inventory (1) Market Inventory (1) Market Inventory (1) National Markets Construction concentrated in markets characterized by 479 489 robust leasing velocity and 434 MW MW high visibility o
Slide 5: Decelerating Global Economic Growth Outlook
Decelerating Global Economic Growth Outlook Data Center Demand Drivers Are a Bright Spot 4Q15 CALL CURRENT BETTER / February 25, 2016 April 25, 2016 WORSE 2016E 2017E Global GDP Growth Forecast (1) 2016E: 3.4% 2016E: 3.2% q 3.2% 3.5% MACROECONOMIC (1) U.S. GDP Growth Forecast 2016E: 2.6% 2016E: 2.4%
Slide 6: Financial Results
Financial Results
Slide 7: Telx Scorecard
Telx Scorecard On Track to Meet or Exceed Key 2016 Financial Targets Completed / On-Track Slightly Behind Off-Track OPERATING REVENUE CORE EBITDA (1) EXPENSE SYNERGIES 2016 $385+ million $148+ million $15+ million UNDERWRITING TARGET 3Q16 2Q16 1Q16 $91.7 million $38.4 million ACTUAL 1Q15 $83.5 milli
Slide 8: Sustained Leasing Momentum
Sustained Leasing Momentum Hunting and Farming Historical Lease Signings Total s.f. Annualized GAAP Annualized GAAP Annualized GAAP Base Rent (2) Product Type Signed (1) Base Rent / s.f. (2) Base Rent (2) Turn-Key Flex® 149,958 $216 $32.4 million Powered Base Building® – $0 $0 million Colocation 22,
Slide 9: Healthy Backlog Sets a Solid Foundation
Healthy Backlog Sets a Solid Foundation Solid Pre-Leasing De-Risks New Market Entry Backlog Roll-Forward + Commencement Timing Current Period Backlog Signings Commencements Total Backlog $ in millions $125 $39 $33 $100 $9 $75 $84 $31 $50 $90 $90 $25 $50 $ 4Q15 Backlog Signings Commencements 1Q16 Bac
Slide 10: Cycling Through Peak Vintage Renewals
Cycling Through Peak Vintage Renewals Approaching Mark-to-Market Inflection Point • Signed renewal leases representing $51 Total million of annualized GAAP rental revenue 2% 13% • Rental rates were up on a cash basis 2% and Cash Rent GAAP Rent Data Center increased by 13% on a GAAP basis for total C
Slide 11: 1Q16 Results Ahead of Plan
1Q16 Results Ahead of Plan Operating Outperformance + Interest Savings Drive Upside 1Q16 Core FFO/ Share Reconciliation $1.50 Actual $1.42 Consensus $0.03 $1.40 $1.35 $0.01 $0.02 $0.01 $1.30 $1.20 $1.10 1Q16 Core FFO Digital Realty Telx Digital Realty Lower 1Q16 Core FFO Consensus (1) Consensus NOI
Slide 12: Constant-Currency Growth
Constant-Currency Growth 25% FX Represents ~ 150 bps Drag on Reported Results As Reported Constant-Currency Total Including Telx 20% 25% 25.4% 24.0% 24.3% 22.9% 15% 12.7% 11.7% 10% 10.5% 9.2% 7.9% 7.9% 6.5% 6.8% 5% 5.0% 4.3% 0% 1Q16 / 1Q15 1Q16 / 1Q15 1Q16 / 1Q15 1Q16 / 1Q15 2016E / 2015 Revenue Gro
Slide 13: Debt Maturity Schedule as of March 31, 2016
Debt Maturity Schedule as of March 31, 2016 No Bar Too Tall; Nominal Near-Term Maturities Extended Global Unsecured Revolving Credit Facility and Term Loan Maturities to 2021 and 2023 Secured Mortgage Debt (1) (1) Unsecured Prudential Shelf Facility Pro Rata Share of JV Debt (2) Share of (2) Unsecur
Slide 14: Debt Maturity Schedule Pro Forma for Eurobond
Debt Maturity Schedule Pro Forma for Eurobond No Bar Too Tall; Nominal Near-Term Maturities Extended Global Unsecured Revolving Credit Facility and Term Loan Maturities to 2021 and 2023 Secured Mortgage Debt (1) (1) Unsecured Prudential Shelf Facility Pro Rata Share of JV Debt (2) Share of (2) Unsec
Slide 15: Consistent Execution on Strategic Vision
Consistent Execution on Strategic Vision Recreate S&U on Delivering Current Results, Seeding Future Growth previous page in Column Graphs Successful 1Q16 Initiatives Extending the Global Footprint Entered new target market with Frankfurt land acquisition, signed anchor tenant for first project in Ja
Slide 16: Appendix
Appendix
Slide 17: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial 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 may dif
Slide 18: Definitions of Non-GAAP Financial Measures (cont.)
Definitions of Non-GAAP Financial Measures (cont.) EBITDA AND ADJUSTED EBITDA: We believe that earnings before interest, loss from early extinguishment of debt, income taxes and depreciation and amortization, or EBITDA, and Adjusted EBITDA (as defined below), are useful supplemental performance meas
Slide 19: Reconciliation of Non-GAAP Items
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) Three Months Ended (in thousands, except per share and unit data) March 31, 2016 (unaudited) FFO
Slide 20: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Digital Realty Trust, Inc. and Subsidiaries Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Net Income Available to Common Stockholders to Earnings Before Interest, Taxes, Reconciliation of Same Capital Cash Net Operatin
Slide 21: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Reconciliation of Core EBITDA (unaudited) (in thousands) Net loss $ (1,705) Income tax benefit (86) Interest expense, net 871 Depreciation & amortization 33,726 EBITDA $ 32,806 Plus: Non-Cash Rent 7,762 Plus: Non-Cash Compensation 115
Slide 22: Forward-Looking Statements
Forward-Looking Statements The information included in this presentation contains forward-looking statements. Such statements are based on management’s beliefs and assumptions made based on information currently available to management. Such forward-looking statements include statements relating to: