Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q3 2018 Earnings Presentation
20 slides from Digital Realty Trust's earnings presentation, Oct 25, 2018
Slide 1: 3Q18 Financial Results
Global. Connected. Sustainable. 3Q18 FINANCIAL RESULTS OCTOBER 2018 Digital Realty the trusted foundation | powering your digital ambitions
Slide 2: Navigating the Future
Navigating the Future Sustainable Growth for Customers, Shareholders & Employees Leading Position in Unparalleled Expertise Rapidly Growing to Execute in Latin American Region Latin America Leading data center provider in Latin America, providing a full spectrum of offerings, including colocation an
Slide 3: The Connected Campus: Digital Ashburn
The Connected Campus Digital Ashburn 70% of the world’s web traffic flows through Loudoun County (1) 375 MW Digital Realty has over 375 MW of capacity on our existing Ashburn campuses… 667 acres …in addition to 667 acres of land holdings that will support the build-out of another 1000+ MW (2) 1) Sou
Slide 4: Firm Fundamentals: Robust Demand, Rational Supply
Firm Fundamentals Robust Demand, Rational Supply NORTH AMERICA EMEA APAC 2,381 848 2,025 974 1,082 752 3Q17 3Q18 3Q17 3Q18 3Q17 3Q18 MEGAWATTS COMMISSIONED(1)(2) MEGAWATTS COMMISSIONED(1)(2) MEGAWATTS COMMISSIONED(1)(2) % 87% % 85% % 95% 90 DIGITAL 90 DIGITAL 91 DIGITAL REGION REALTY REGION REALTY R
Slide 5: Supportive Economic Growth Outlook
Supportive Economic Growth Outlook Levered to Long-Term Secular Demand Drivers 2Q18 CALL CURRENT Better/ July 25, 2018 October 15, 2018 Worse 2018E 2019E Global GDP Growth Forecast (1) 2018E: 3.9% 2018E: 3.7% 3.7% 3.7% U.S. GDP Growth Forecast (1) 2018E: 2.9% 2018E: 2.9% 2.9% 2.5% U.S. Unemploy
Slide 6: Financial Results
Financial Results DIGITAL REALTY | 3Q18 FINANCIAL RESULTS | OCTOBER 25, 2018 | 6
Slide 7: Lumpy But Healthy: Historical Bookings
Lumpy But Healthy Comprehensive Solutions Support Diverse Customer Base HISTORICAL BOOKINGS ANNUALIZED GAAP BASE RENT(1)(2) $ in millions $100 $75 $50 $25 $0 1Q 2Q20093Q 4Q 1Q 2Q20103Q 4Q 1Q 2Q20113Q 4Q 1Q 2Q20123Q 4Q 1Q 2Q20133Q 4Q 1Q 2Q20143Q 4Q 1Q 2Q20153Q 4Q 1Q 2Q20163Q 4Q 1Q 2Q20173Q 4Q 1Q 2018
Slide 8: Top-Line Step Function: Healthy Backlog
Top-Line Step Function Healthy Backlog Sets a Solid Foundation BACKLOG ROLL-FORWARD COMMENCEMENT TIMING $ in millions $ in millions 2Q18 Backlog Signings Commencements 3Q18 Backlog Current Period Backlog Total Backlog $62 $54 $8 $64 $142 $148 $148 $76 2Q18 Backlog Signings Commencements 3Q18 Backlog
Slide 9: Cycling Through Peak Vintage Renewals
Cycling Through Peak Vintage Renewals Gradually Improving Mark-to-Market 3Q18 RE-LEASING SPREADS TURN-KEY FLEX® POWERED BASE BUILDING® COLOCATION TOTAL RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE -1.9% 5.9% 2.5% 0.2% CASH CASH CASH CASH 0.7% 8.0% 2.6% 1.6% GAAP GAAP G
Slide 10: Putting Exposure in Perspective
Putting Exposure in Perspective Benefits of Scale and Diversification on Display EXPOSURE BY REVENUE 2018 CORE FFO/SHARE EXPOSURE USD CAD GBP EURO JPY HKD SGD AUD 0.2% 1% 9% GBP +/- 10% 4% 82% 0% Midpoint of 0.1% 0.1% Guidance $6.55 – $6.65(1) EUR BENCHMARK 0% +/- 10% RATES +/- 100 bps 3% 1% YEAR-TO
Slide 11: 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 DEBT MATURITY SCHEDULE AS OF SEPTEMBER 30, 2018(1)(2) (USD in billions) 99% Unsecured Unsecured Secured 5 YEARS 3.5% Weighted Avg. Weighted Avg. Maturity(1)(2) Coupon(1) 87% Fixed $2.1
Slide 12: Matching the Duration of Assets and Liabilities (Pro Forma)
Matching the Duration of Assets and Liabilities Clear Runway on the Left, No Bar Too Tall on the Right DEBT PROFILE PRO FORMA DEBT MATURITY SCHEDULE(1) (USD in billions) 99% Unsecured Unsecured Secured 6 YEARS 3.6% Weighted Avg. Weighted Avg. Maturity(1)(2) Coupon(1) Fixed $2.2 87% Fixed Floating $1
Slide 13: Consistent Execution on Strategic Vision
Consistent Execution on Strategic Vision Delivering Current Results, Seeding Future Growth SUCCESSFUL THIRD QUARTER 2018 INITIATIVES mm 1. Deepening Connections with Customers $69 3Q18 Total Bookings Delivered second-highest quarterly bookings, achieved record backlog 2. Extending our Global Footpri
Slide 14: Appendix
Appendix DIGITAL REALTY | 3Q18 FINANCIAL RESULTS | OCTOBER 25, 2018 | 14
Slide 15: Robust Long-Term Demand, Lumpy Near-Term Signings
Robust Long-Term Demand, Lumpy Near-Term Signings Diverse Customer Base + Product Offerings HISTORICAL BOOKINGS TRAILING FOUR-QUARTER AVERAGE ANNUALIZED GAAP BASE RENT(1)(2) $ in millions $80 $60 $40 $20 $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 3Q18 TRAILING FOUR-QUARTER AVERAGE BOOKINGS
Slide 16: 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 17: Management Statements on Non-GAAP Measures: EBITDA
Appendix Management Statements on Non-GAAP Measures EBITDA and Adjusted EBITDA: We believe that earnings before interest, loss from early extinguishment of debt, income taxes, depreciation and amortization, and impairment of investments in real estate, or EBITDA, and Adjusted EBITDA (as defined belo
Slide 18: Management Statements on Non-GAAP Measures
Appendix Management Statements on Non-GAAP Measures 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 includ
Slide 19: Reconciliation of Non-GAAP Items to 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: Digital Realty: the trusted foundation
Digital Realty the trusted foundation | powering your digital ambitions