Slide 1: Around the World in Ninety Days
ath. wt vi (| 0BE= Lined a | 7 NY Around the World in Ninety Days DIGITAL REALTY DIGITAL REALTY 1Q17 FINANCIAL RESULTS APRIL 2017
Slide 2: The Next Horizon
The Next Horizon Three-Year Guideposts Our Focus Our philosophy is to deliver superior returns by capitalizing on our core competencies and tailoring them to meet our customers’ growing and evolving data center needs __ . = SUPERIOR RETURNS CAPITAL ALLOCATION PRODUCT OFFERINGS OPERATING EFFICIENCIES
Slide 3: Meeting Our Customers' Growing Data Center Needs
Meeting Our Customers’ Growing Data Center Needs Sur Go-to-Market strategy with our customers’ unique neéds’and the way they buy TNA GLOBAL, DIVERSE CUSTOMER-CENTRIC CUSTOMER BASE ALIGNMENT Global Solutions i 1Q17 EARNINGS CALL & PRESENTATION | APRIL 27, 2017 3
Slide 4: Firm Fundamentals
Firm Fundamentals Robust Demand, Rational Supply Demand Outpacing Supply r Data Center Markets 2Q16 3Q16 4Q16 107 Market DLR® 96% 97% 2016 Digital Realty Deliveries 15 MW 96% Leased Market Absorption-to- Construction @ 2016 3Q16 4016 1017 Market“ DLR 90% 90% 2016 Digital Realty Deliveries Fey 13 MW
Slide 5: Improving Economic Growth Outlook
& Improving Economic Growth Outlook Long-Term Secular Data Center Demand Global GDP Growth Forecast “ U.S. GDP Growth Forecast U.S. Unemployment Rate? Inflation Rate - U.S. Annual CPI Index Crude Oil ($/barrel)® Control of White House, Senate and HoR 4Q16 Call February 16, 2017 2017E: 3.4% 2017E: 2.
Slide 6: a DIGITAL REALTY
a DIGITAL REALTY
Slide 7: Comprehensive Solutions Attract Diverse Customer Base
Comprehensive Solutions Attract Diverse Customer Base . . en Total Annualized GAAP nualized GAAP Historical Lease Signings Product Typ: Signed Base Rent / sf. Base Rent Annualized GAAP Base Rent aE: ; Salen Base Building® 5 - ation 55 $28 3 million Non-Technical 946 million $ in milfons Interconnect
Slide 8: Front-End-Loaded Commencement Schedule
Front-End-Loaded Commencement Schedule Backlog Roll-Forward + Commencement Timing Hi Current Period Backlog Llsignings [i commencements i Total Backlog $in millions $125 $100 ~ ($38) pesce $75 1 ! $3 $50 $25 S$ 4Q16 Signings Commencements 1Q17 Backlog 2017 2018 2020+ Total Backlog Note: Amounts show
Slide 9: Positive Mark-to-Market Across All Property Types
Positive Mark-to-Market Across All Property Types PRODUCT TYPE Turn-Key Flex® RENEWALS Renewed 100,874 square feet of Turn-Key Flex® data centers at a rental rate increase of 3% on a cash basis and a 6% increase on a GAAP basis Powered Base Building® Renewed 81,745 square feet of Powered Base Buildi
Slide 10: USD CAD GBP EURO JPY HKD SGD AUD
USD CAD GBP EURO JPY HKD SGD AUD
Slide 11: Revenue Growth: Reported and Constant-Currency
FX Represents ~ 150 bps Drag on Reported Results 1 As Reported i Constant-Currency 15% 19% 10% 10.8% 5% 0% 1017 / 1016 1017 / 1016 1017 / 1016 1917 / 1016 2017E / 2016 Revenue Growth Adj. EBITDA Same-Capital Cash Core FFO/sh Core FFO/sh Growth © NOI Growth © Growth Growth 2 Note: Constant-currency,
Slide 12: Core FFO per Share Bridge
$1.52 Non-Core 1Q17A NOI Property G&A Forward Non-Cash Topic 2Q17E 3Q17E 4Q17E Growth Taxes Timing Equity Exercise D-42 Charge
Slide 13: Ample Liquidity to Fund Future Growth
Ample Liquidity to Fund Future Growth CS in billions) Remaining Forward Equity Offering $0.2 Bn _—_ Repayment of Maturing Debt $0.1 Bn Asset Sales $0.1Bn Preferred Equity Redemption $0.2 Bn Cash Flow from Operations “ $0.4 Bn Recurring CapEx and Leasing Costs $0.1 Bn Bond Issuance and / or Bank Debt
Slide 14: Consistently Improving Quality of Earnings
Consistently Improving Quality of Earnings CS in millions) 6.0% @Straight-Line Rental Revenue Straight-Line Rent as % of Revenue $25 > 6% 5.5% e 9 $22.7 5.0% 5 §20 $21.3 % 4.5% o% $199 aa $18.6 $17.6 55% 4% S15 3.3% 31% 514.5 9 13.4 3% : $13.6 $10 — ‘ S74 2% 19% g55 7 gs $5 1.5% $41 9 11% 11% % 0.9%
Slide 15: Nominal Near-Term Maturities; No Bar Too Tall
Nominal Near-Term Maturities; No Bar Too Tall DEBT MATURITY SCHEDULE “? CURRENT CAPITAL STRUCTURE “ ™ Secured Mortgage Debt @ Pro Rata Share of JV Debt @ Unsecured Senior Notes @ Unsecured Term Loan m Unsecured Green Bonds CS in billions) $3.0 m Unsecured Global Facility $2.2 $2.0 $1.0 $0.0 2017 201
Slide 16: Delivering Current Results, Seeding Future Growth
Delivering Current Results, Seeding Future Growth Successful First Quarter 2017 Initiatives SETTING THE TONE FROM THE TOP CAPTURING ROBUST AND DIVERSE CUSTOMER DEMAND EXCEEDING EXPECTATIONS STRENGTHENING THE BALANCE SHEET 1) 1017 net income per share of $0.41. For a description of core FFO and a rec
Slide 17: Appendix
Slide 18: Robust Long-Term Demand, Lumpy Near-Term Signings
Robust Long-Term Demand, Lumpy Near-Term Signings Diverse Customer Base + Product Offerings Historical Lease Signings Annualized GAAP Annualized GAAP Trailing Four-Quarter Average sei” eee ae gt Stee Ha Annualized GAAP Base Rent Colocation G in millions) Non-Technical $60 Interconnection $40 | $20 |
Slide 19: U.S. Major Metro Area Data Center Supply
B U.S. Major Metro Area Data Center Supply °? Supply Largely Concentrated in Most Active Me 1Q17 in megawatts) ™ Current Supply “®” “New Construction —_ Digital Realty Inventory 1 1 + et —— | Boston Chicago Dallas Houston N Virgina NY Metro Phoenix Silicon Valley 4Q16 a>) 2D ™ Current Supply “ “New
Slide 20: Appendix
Appendix 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 differ from those of other REITs, and,
Slide 21: Appendix
Appendix 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 measures because they allow investors to view
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:
Slide 23: 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) (in thousands, except per share and unit data) (unaudited) Three Months Ended March 31, 2017 Marc
Slide 24: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Three Months Ended March 31, 2017 March 31, 2016 FFO available to common stockholders and unitholders -- basic and diluted $ 243,775 _$ 208,406 Weighted average common stock and units outstanding 161,475 149,048 Add: Effect of dilutiv
Slide 25: 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 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA (in thousands) (unaudited) Three
Slide 26: Reconciliation of Non-GAAP Items
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 March 31, 2017 March 31, 2016 Rental revenues $ 250,064 $ 250,215 Tenant reimbursements
Slide 27: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent igital 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) Net income (loss) available to common s