Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Investor Presentation (November 2024)
46 slides from Digital Realty Trust's investor presentation, November 2024
Slide 1: Global. Connected. Sustainable.
Global. Connected. Sustainable. INVESTOR PRESENTATION NOVEMBER 2024 The meeting place for companies, technologies and data
Slide 2: Digital Realty Overview
r Digital Realty Overview L.
Slide 3: A Global Data Center and Connectivity Platform
A Global Data Center and Connectivity Platform Supporting our Customers’ Critical IT Architecture 5,000+ 225,000+ 50+ 300+ Customers (1) Cross Connects (1) Metros (1) Data Centers (1) EQUITY & ENTERPRISE VALUE TOP PUBLICLY TRADED U.S. REIT $55 Bn $72 Bn 7th 2016 EQUITY MARKET ENTERPRISE LARGEST ADDE
Slide 4: Global Platform Focused on Execution of Strategic Priorities
Global Platform Focused on Execution of Strategic Priorities 1 2 3 Strengthen our Innovate & Diversifying and As of September 30, 2024 Customer Value Integrate for our Bolstering Proposition Customers Capital Sources STRONG LEASING Executing Meeting Building new applications Partnering with so
Slide 5: Unique Full Spectrum Solution Platform Global Footprint Assembled
Unique Full Spectrum Solution Platform Global Footprint Assembled 2015 2016 2017 2018 2020 2022 Metros 30 31 31 34 49 50 50+ Cross 60 70 74 78 164 211 225 Connects (in 000s) European Telx DuPont Fabros Ascenty Interxion Teraco Portfolio Acquisition A Leading North America U.S. Provider of Colocation
Slide 6: Offering a Global Data Center Platform
Offering a Global Data Center Platform Capacity in World’s Major Metros to Meet Growing Customer Demand Global Capacity ~2,700 MW Total In-Place IT Capacity 644 MW Under Construction Geographically Diversified (1) 4% 4% 11% North America Europe 53% APAC 28% Latin America Africa Note: As of September
Slide 7: Land Bank Available to Double IT Capacity
Land Bank Available to Double IT Capacity >3,000 MW Future Development Capacity = >100MWs of Buildable IT Capacity = >50MWs of Buildable IT Capacity = <25MWs of Buildable IT Capacity AMERICAS EMEA APAC TOTAL Existing Capacity 1,700 MWs 900 MWs 300 MWs 2,900 MWs Buildable Capacity 2,200 MWs 1,200 MWs
Slide 8: Digital Realty's Competitive Advantage & Execution Strategy
Digital Realty’s Competitive Advantage & Execution Strategy Customer Relationships Connected Campus Approach Global Platform Connectivity Long-standing, deep and trusted partner Connected campus approach allows for Embedded internal expertise as the world’s Allows customers connectivity to cloud of
Slide 9: Experienced Management Team Solely Focused on Building and Operating Data Centers
Experienced Management Team Solely Focused on Building and Operating Data Centers DIGITAL REALTY LEADERSHIP TEAM Andy Power Matt Mercier Greg Wright Cindy Fiedelman Chris Sharp Jeannie Lee Colin McLean Jeff Tapley President & CEO Chief Financial Officer Chief Investment Officer Chief HR Officer Chie
Slide 10: Strong Secular Trends
Strong Secular Trends Artificial Intelligence Driving Next-Generation Demand 10
Slide 11: Multiple Secular Demand Drivers
Multiple Secular Demand Drivers Global Demand Across the Product Spectrum Artificial Intelligence Cloud Enterprise Digital Transformation Initial Scale Demand for Training, Hybrid IT – Combination of Scale & Connectivity Characteristics followed by Connectivity Demand for Growing Globally Privately
Slide 12: Global Data Center Demand and Supply
Global Data Center Demand and Supply Accelerating Data Center Demand and Limited Supply Leading to Declining Vacancy Rates ESTIMATED GLOBAL DATA CENTER CAPACTY DEMAND (1) DECLINING GLOBAL DATA CENTER VACANCY (2) GLOBAL CAPACITY DEMAND GLOBAL ABSORPTION AND VACANCY in GW in MW Chart Title 250 10.8% 6
Slide 13: The PlatformDIGITAL Competitive Advantage
The PlatformDIGITAL® Competitive Advantage PlatformDIGITAL® Seeks to Generate Greater Customer Demand, Driving Significant Returns via a Differentiated Product Offering Hyperscale Enterprise / Colo Data Centers Data Centers Hyperscalers deploy cloud Enterprises can connect to the on-ramps which allo
Slide 14: AI Platform Readiness
AI Platform Readiness As power-dense workloads grow, Digital Realty’s modular designs can accommodate advanced cooling solutions (1) Average Rack Density Increase and % of Racks above 30 kW Cooling Technology by Threshold of Rack Densities Enterprise & Enterprise & Colocation + AI / HPC / Hyperscale
Slide 15: Global Connectivity Hubs
Global Connectivity Hubs Network Density that Promotes Innovation and Collaboration 28+ METROS 225K+ CROSS-CONNECTS Globally Where Our GLOBALLY Internet Gateways Are Located 50+ 4,000+ ASSETS NETWORK INSTANCES With Over 1,000 GLOBALLY Cross-Connects Each Note: As of September 30, 2024. 15
Slide 16: The ServiceFabric Differentiating Factor
The ServiceFabricTM Differentiating Factor ServiceFabric Seeks to Allow the Customer to Establish Numerous, Seamless Virtual Private Connections BUILDING SERVICEFABRIC CONNECTIONS SERVICEFABRIC AT A GLANCE 150+ 375+ 38 Digital Realty Facilities 3rd Party Enabled Metros Globally Connected Globally Da
Slide 17: Private Interconnections Enable Enterprise AI Applications
Private Interconnections Enable Enterprise AI Applications Private AI Exchange Powered by ServiceFabric helps enterprises alleviate data gravity barriers FUTURE-PROOFED ORCHESTRATION HD Colo accelerates 150 kW/rack ServiceFabric enables intelligent AI deployments in 34 markets across the global work
Slide 18: Disciplined Financial Strategy
Disciplined Financial Strategy Committed to an Investment Grade Balance Sheet Strong and Diverse Capital Sources 18
Slide 19: Proven Track Record of Sustainable Growth
Proven Track Record of Sustainable Growth Disciplined Financial Management 2018 3Q24 Better/ Worse Change Properties / Data Centers (1) 214 312 46% Metro Areas (1) 35 metro areas 59 metro areas 69% SIZE & DIVERSIFICATION Total Enterprise Value (2) $35 Bn $72 Bn 105% LTM Bookings $268 Mn $1 Bn
Slide 20: Leverage Below Target, Positioned for Growth
Leverage Below Target, Positioned for Growth Capital Recycling and Equity Issuance Support Development Spend CAPITAL STRUCTURE Net Debt to Adjusted EBITDA(1) 1.7x Debt 7.1x 24% Total Reduction in Preferred Leverage Debt Equity 5.4x $5 Billion Of Total Liquidity 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Not
Slide 21: Matching the Duration of Assets and Liabilities
Matching the Duration of Assets and Liabilities Modest Near-Term Maturities, Well-Laddered Debt Schedule DEBT MATURITY SCHEDULE AS OF September 30, 2024 (1)(2) DEBT PROFILE (U.S. $ in billions) $3.0 $3.4 4.6 YEARS 2.6% Unsecured Weighted Avg. Weighted Avg. Maturity (1)(2) Coupon (1)(3) 96% Secured $
Slide 22: Recent Financial Results
Recent Financial Results Note: Certain data in this section was originally posted to the Company’s website on October 24, 2024 and has not been updated to reflect changes occurring after that date. 22
Slide 23: Executing on Key Strategic Priorities
Executing on Key Strategic Priorities Positioning for Long-Term Sustainable Growth Third Quarter Highlights Record Leasing 2 Strong Operating 3 Record 1 and Backlog Results (1) Development $521M Record in Total +100 bps ~50% Coverage Capacity Bookings Sequential Increase in Increased Development Dep
Slide 24: 3Q24 Bookings Double the Prior Record
HISTORICAL BOOKINGS 3Q24 Bookings ANNUALIZED GAAP BASE RENT $ in millions Double the Prior $500 Record $375 • Record Volume in >1MW $250 • Record Pricing in >1MW $125 • Record Volume in 0-1MW + IX $0 2020 2021 2022 2023 2024 • 2024 YTD Signings Marks Highest Single 3Q24 BOOKINGS Year Total 0-1 MW IN
Slide 25: Enabling the Meeting Place
Enabling the Meeting Place Record Quarter in Colocation and Interconnection 3Q24 Results 149 Record New Logos Added $66M Record 3Q Bookings from 0-1MW + Interconnection $40M Record 3Q Bookings in the 0-500kW tranche 25
Slide 26: Strong Pricing Environment
Strong Pricing Environment 3Q24 RENEWAL SPREADS 0-1 MW > 1 MW OTHER (1) TOTAL RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE • Record Breaking Re-Leasing Spreads 4.5% 31.4% 7.7% 15.2% CASH CASH CASH CASH Driven By >1MW 6.2% 60.6% 18.5% 27.5% GAAP GAAP GAAP GAAP • 2024 Re
Slide 27: Lease Expirations Provide Re-Pricing Opportunities
Lease Expirations % of Lease Expirations by Annualized Base Rent (1) Provide Re-Pricing Opportunities 30% >1 MW 0-1 MW Other 8% – 10% • Shorter term 0-1 MW 25% Updated 2024 leases provide near Guidance(2) for cash rental rate on renewals term opportunities to 20% drive price increases 15% • Evenly s
Slide 28: Record Backlog Provides Visibility
Record Backlog BACKLOG ROLL-FORWARD (1) $ in millions COMMENCEMENT TIMING (3) $ in millions Provides Visibility $521M $180M $178M $859M $99M $859M • Record Commencements $308M $95M $467M of $180M $286M • Record Backlog of $518M $352M $859M $760M $760M $469M $288M $100M $90M 2Q24 Backlog (2) Signed C
Slide 29: High-Quality, Diversified Customer Base
High-Quality, TOP 20 CUSTOMERS Diversified Customer Base Customer Rank Locations % of Customer Rank Locations % of ARR (1) ARR (1) • Top customers have a 1. Fortune 50 Software Company 73 11.2% 11. Specialized Cloud Provider 2 1.4% presence in 36 different 2. 38 5.7% Fortune 25 Tech 12. Company 50 1
Slide 30: Enhanced Visibility and Positioning for Accelerating Growth
Enhanced Visibility and Positioning for Accelerating Growth Long-Term Core FFO Growth Mid Single-Digit Growth Executing on Key Strategic Priorities (1) 1.7% DIVERSIFIED Capital Sources & Deleveraging UNLOCKED Development Pipeline IMPROVED Pricing and MTM 2024 2025 2026+ Note: All projections based o
Slide 31: Spotlight on Sustainability: Building for a Better Tomorrow
Spotlight on Sustainability: Building for a Better Tomorrow Helping Enterprises Cut Costs and Meet Their Sustainability Goals 31
Slide 32: 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 Resource Efficiency Green Bonds Leading data center purchaser of More green building certified IT capacity More energy star certifications than an
Slide 33: Serving a Social Purpose
Serving a Social Purpose Delivering Growth for All Stakeholders SOCIAL GOVERNANCE Newsweek’s America’s Most Responsible 2024 Enhanced Board diversity to 44% female or Companies of 2023 ethnically diverse 2023 Launched Supply Chains ESG Program Top 100 ranking on JUST Capital America’s Most JUST Comp
Slide 34: Appendix
Presenter Name 15/09/22 Appendix
Slide 35: 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 36: 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 37: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent 37
Slide 38: 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 39: 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 40: 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 41: 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 42: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items To Their Closest GAAP Net Debt/LQA Adjusted EBITDA PF 12/31/23 Equivalent Net Debt as of December 31, 2023 Pro forma proceeds from asset sales, completion of JVs and issuance of shares through the ATM $ 17,377,488 program in January 2024 (1,246,000) Pro Forma Net Deb
Slide 43: Reconciliation of Non-GAAP Items
Total Debt/Total Enterprise Value QE 03/31/24 Debt Service Ratio (LQA Adjusted EBITDA/GAAP interest expense plus capitalized interest and less bridge facility (i) Reconciliation of Market value of common equity $ 45,950,001 fees) Liquidation value of preferred equity(ii) 755,000 Total GAAP interest
Slide 44: Reconciliation of Non-GAAP Items
Net Debt/LQA Adjusted EBITDA QE 06/30/24 Total debt at balance sheet carrying value $ 16,339,746 Reconciliation of Add: DLR share of unconsolidated joint venture debt 1,415,647 Add: Capital lease obligations, net 358,386 Less: Unrestricted cash (2,573,739) Non-GAAP Items Net Debt as of June 30, 2024
Slide 45: Reconciliation of Non-GAAP Items
Total Debt/Total Enterprise Value QE 09/30/24 Debt Service Ratio (LQA Adjusted EBITDA/GAAP interest expense plus capitalized Reconciliation of (i) Market value of common equity $ 54,657,112 interest and less bridge facility fees) (ii) Liquidation value of preferred equity 755,000 Total GAAP interest
Slide 46: Thank you
r Thank you FN DIGITAL Lv REALTY.
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