Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q2 2017 Earnings Presentation
33 slides from Digital Realty Trust's earnings presentation, Jul 27, 2017
Slide 1: 2Q17 Financial Results July 2017
2Q17 FINANCIAL RESULTS JULY 2017 G DIGITAL REALTY
Slide 2: Supporting Our Customers' Growth
Supporting Our Customers’ Growth Full Spectrum of Data Center Solutions Across a Global Platform i DIGITAL REALTY 157 12 6S Dy PROPERTIES COUNTRIES METROPOLITAN AREAS MILLION RENTABLE SQ.FT.
Slide 3: Execution of M&A Game Plan
Execution of M&A Game Plan Delivers Key Strategic and Financial Benefits FINANCIALLY ACCRETIVE PRUDENTLY FINANCED Expected to close in the second half of 2017, subject to customary closing conditions, including DLR and DFT shareholder approvals. </_
Slide 4: DuPont Fabros Technology
DuPont Fabros Technology (NYSE: DFT) GEOGRAPHIC PRESENCE = miestoe : J ) r CF Te, Or ay HIGH-QUALITY CUSTOMER BASE © iz, ]
Slide 5: Combination Creates A Leading Data Center REIT
Combination Creates A Leading Data Center REIT DATA CENTER REITS BY TOTAL ENTERPRISE VALUE © LARGEST PUBLICLY TRADED U.S. REIT ° Gin billions) Equity Market Capitalization @® 2017 DIGITAL REALTY FINANCIAL RESULTS | JULY 27, 2017 5
Slide 6: Benefits of Size and Scale on Display
Benefits of Size and Scale on Display SIZE AND ADJUSTED EBITDA MARGIN G&A (% of Revenue) 207 : As of March 31 Marsin® @ vurcombined @ eax @ cone @ ors © cor 5% ‘Most comprehensive product suite at the most efficient cost structure ® 70 150 190 # of Data Centers master Veensen * i wecentn " DLR Combi
Slide 7: Leading Multi-Product Data Center Provider
Leading ‘a clvall Multi- Product Data Center Provider Unmatched Value Proposition Strengthens Position in Strategic Metro Areas Improves Customer Base with Creditworthy Tenants Complementary Businesses with Significant Synergies Expected to be Accretive to Financial Metrics and Growth Proven Ability
Slide 8: Outlook & Demand
Slide 9: Firm Fundamentals
Firm Fundamentals Robust Demand, Rational Supply Demand Outpacing Supply in Top-Tier Data Center Metro Areas 30% 40% 107207 Market DLR” Market DLR® Market pLR® 96% 94% 89% 89% 93% 91% ug LT™ Digi Absorption-to Construction Re | 1 foe Leased Absorption-to: &> Absorption-to- Construction LTM Absorptio
Slide 10: Macroeconomic and market outlook table
1Q17 CALL CURRENT Better/ April 26, 2017 July 26, 2017 Worse 2017E 2018E Global GDP Growth Forecast (1) 2017E: 3.5% 2017E: 3.5% tu 3.5% 3.6% U.S. GDP Growth Forecast (1) 2017E: 2.3% 2017E: 2.1% q 2.1% 2.1% U.S. Unemployment Rate (2) 4.5% 4.4% q 4.4% 4.2% Inflation Rate – U.S. Annual CPI Index (2) 2.
Slide 11: Digital Realty
ti DIGITAL REALTY
Slide 12: Comprehensive Solutions Support Diverse Customer Base
Comprehensive Solutions Support Diverse Customer Base Total Annualized GAAP Annualized Historical Lease Signings Product Type Base Rent / Base Ren Annualized GAAP Base Rent ® $40 $20 1Q 20 3Q 40 10 20 3Q 4Q 10 20 30 40 10 20 3Q 40 10 20 30 4Q 10 20 30 4Q 10 20 30 40 10 20 3Q 40 10 20 A al rei oa nva
Slide 13: Front-End-Loaded Commencement Schedule
Front-End-Loaded Commencement Schedule Backlog Roll-Forward + Commencement Timing ‘ Hi current Period Backlog [fiSignings [ilcommencements [i Total Backlog $in millions $15 $100 an 1017 Backlog Signings Commencements 217 Backlog 2017 2018 2019+ Total Backlog Note
Slide 14: Positive Mark-to-Market Across All Property Types
Positive Mark-to-Market Across All Property Types PRODUCT TYPE RENEWALS 2Q17 RE-LEASING SPREADS Turn-Key Flex® a rental rate increase of 0.3% on a cash basis and a 4.3% increase on a GAAP basis = Renewed Powered Base Building® 245% increase on a GAAP basis = Renewed 121,136 square feet of colocation
Slide 15: Currency exposure (USD, CAD, GBP, EUR, JPY, HKD, SGD, AUD)
USD CAD GBP EURO JPY HKD SGD AUD
Slide 16: FX Represents Drag on Reported Results
FX Represents ~ 150 bps Drag on Reported Results [il As Reported i Constant-Currency 15% 2017 / 2016 2017/2016 2017 / 2016 2017 / 2016 2017E / 2016 Revenue Growth ‘Adj, EBITDA Same-Capital Cash Core FFO/sh Core FFO/sh Growth ® NOI Grow Growth ® Growth ® 1 Netincome for Net income for > {53% and 71%
Slide 17: Core FFO per share bridge 1Q17A to 4Q17E
1Q17A 2Q17A Revenue Growth Operating Expense Seasonality and Dispositions Long-Term Financings 3Q17E 4Q17E
Slide 18: Consistently Improving Quality of Earnings
Consistently Improving Quality of Earnings (Sin millions) WStraight-Line Rental Revenue _—_@Straight-Line Rent as % of Revenue 4Q13 1014 2014 3014 4014 1015 2Q15 3Q15 4Q15 1016 2016 3016 4Q16 1017 2Q17
Slide 19: Recent Credit Events
Recent Credit Events April 5, 2017 + Redeemed all S Preferred Stock Redemption Preferred Stock at par value of $25 per share ©? i $1825 million Settled remaining million, 5 million shar May 19, 2017 of the forward equity offering for proc Last remaining portion of the 14, entered into in May 5 milli
Slide 20: Nominal Near-Term Maturities; No Bar Too Tall
Nominal Near-Term Maturities; No Bar Too Tall CURRENT DEBT MATURITY SCHEDULE CAPITAL STRUCTURE © ‘arabe pareDett ‘Pro Rata Share of JV Debt ™ Unsecured Term Loan ‘™ Unsecured Senior Notes 5% Gin billions) $3.0 Fixed Rate Debt ™ a etre ef Floating Rate Debt 9% Fixed Rate Debt am 2019 © 2020=S 2021S 2
Slide 21: Delivering Current Results, Seeding Future Growth
Delivering Current Results, Seeding Future Growth Quarter 2017 Initiatives Successful Sec EXECUTING M&A GAME PLAN WITH DUPONT FABROS MERGER SUPPORTING BROAD-BASED CUSTOMER GROWTH EXCEEDING EXPECTATIONS STRENGTHENING THE BALANCE SHEET
Slide 22: Appendix
Slide 23: 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 G, Trailing Four-Quarter Average Ltt Annualized GAAP Base Rent uilding $40 Ml | a 20 304Q =e 20 3Q 4Q 10 20 3Q 4Q 10 20 30 40 10 20 30 40 10 20 30 40 10 20
Slide 24: U.S. Major Metro Area Data Center Supply
U.S. Major Metro Area Data Center Supply Supply Largely Concentrated in Most Active Metro Areas 2Q17 Current Supply ® “New Construction —_ ® Digital Realty Inventory ® Boston Chicago Dallas Houston NVirgins NY Metro Phoenix Silicon Valley 1017 |Current Supply “New Construction pigital Realty Invento
Slide 25: Additional Information and Where You Can Find It
Appendix Additional Information and Where You Can Find It Oigital Realty T Technology, Inc July 10, Investors are urged arcadero Center, Suite 3200, San Francisco, CA 9411, Attention: investor Relations. Investors may obtain free copies of documents fled ros Technology, nc, 401 9" St NW, Suite in re
Slide 26: Appendix: Non-GAAP definitions (FFO, Core FFO, AFFO)
Appendix inthis presentati our atemaive al ash flows 9, investing uci. Funds from. Operations (FEO) We calculate funds from operations or FFO, in accorda ‘Trusts, or NAREIT. Banc cost. 0 lana ant captures trends We also believe that, as a widely recognized operating perfor However, the utility of FO
Slide 27: Appendix: EBITDA and NOI definitions
Appendix ‘EBITDA and Adjusted EBITDA: income ta jrtzaton of EBITDA an Austad EBITA (sdfined belo. ae jppleme ures be roview our pac wit respect ‘equity acceleration, and legal transact . loss.on currency forwards, other st E 5, equity acceleration, and | termination, other Inaction. we believe EBT o
Slide 28: Forward-Looking Statements
Forward-Looking Statements management Such with DuPont Fabros Technology, inching ROK Ising ass nd capa andere row he poe ne, dtvers sources ad us stabilzation 0 eases, and oF Turn Key Fex space expansions ou re mets our custome’ capital and ead tines: ep mite the etfect pation ra pment ncuding the
Slide 29: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Net Ce mound eco oe sara i a) Cunauaie ‘Six Months Ended June 30,2017, June 30,2016 June 30,2017 June 30,2016 ) avaliable 1o common stockholders s a s s 70% ship zation ¢ 1
Slide 30: Reconciliation of Non-GAAP Items
Reconciliation of Non GAAP Items To Their Closest GAAP Equivalent FFO avalabe 1o common stockholers and unithelders base and civted -omman stack and units oustanding ae seh of auve secuttes average common stock and unis outstanding ~ dlisted ‘Six Months Ended Tune 30,2017 une 30,2016 Tune 30,207 une
Slide 31: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Digital Realty Trust, Inc. and Subsidiaries Gin thousands) Cunauaited) ‘Six Months Ended une 30,2017, June 30,2076 une 30,2017 June 30,2016 Net income Coss avaiable to common stockhekers s 57837 $ 27951 s 1982 $ 670% interest 57582 59
Slide 32: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Digital Realty Trust, nc and Subsidiaries fcc Sar Cal Ca et Ont ce thousand ices Sion Eade june 30,2017 June 30,2016 June 30,201 Rental evenves s moe $ 8196 s sos Tenant reimbursements - Utes 36924 Tbe r ysemen's - Other 1065 1.78 337
Slide 33: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Digital Realty Trust, Ine and Subsidiaries (Gn thousands except per share and nit dat) (onsets) Year Ended Weighted average common stock and units outstanding ‘Add: Effect of dutive securities Year Ended December 31, 2016 367.862 1523