Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q1 2021 Earnings Presentation
24 slides from Digital Realty Trust's earnings presentation, Apr 29, 2021
Slide 1: 1Q21 Financial Results
Global. Connected. Sustainable. 1Q21 FINANCIAL RESULTS APRIL 2021 Digital Realty the trusted foundation | powering your digital ambitions
Slide 2: Navigating the Future
Navigating the Future Sustainable Growth for Customers, Shareholders and Employees GLOBAL CONNECTED SUSTAINABLE Selling GLOBALLY… Supporting LOCALLY AMERICAS EMEA APAC A Digital Realty and Brookfield Infrastructure JV DIGITAL REALTY | 1Q21 FINANCIAL RESULTS | APRIL 29, 2021 | 2
Slide 3: Serving a Social Purpose
Serving a Social Purpose Delivering Sustainable Growth for All Stakeholders ENVIRONMENTAL SOCIAL GOVERNANCE Named 2021 EPA Demonstrated senior leadership and ENERGY STAR® employee commitment to Diversity, Formalized ESG oversight Partner of the Year for second Equity & Inclusion; signed CEO Action P
Slide 4: Expanding Global Platform Supporting Customer Growth
Brussels Frankfurt Madrid Expanding Global Platform Supporting Customer Growth Marseille Paris Singapore Global Platform 167,000 4,000+ 47 Cross-Connects Customers Metro Areas Note: As of March 31, 2021. DIGITAL REALTY | 1Q21 FINANCIAL RESULTS | APRIL 29, 2021 | 4
Slide 5: Data Gravity Driving Data Center Demand
Data Gravity Driving Data Center Demand PlatformDIGITAL® Poised to Capitalize Data Sets Public Private Shared Enabling Connected Data Communities™ #BeyondCrossConnects Digital Products Investments Driving Data Hub Deployments Needs Global MTDC Leader 83% 75% 83% of CEOs surveyed expect to increase i
Slide 6: Financial Results
Financial Results DIGITAL REALTY | 1Q21 FINANCIAL RESULTS | APRIL 29, 2021 | 6
Slide 7: Digital Transformation Driving Steady Demand
Digital Transformation Driving Steady Demand Global Full-Product Spectrum Provides Broadest Solutions HISTORICAL BOOKINGS ANNUALIZED GAAP BASE RENT $ in millions #1 $150 #2 #3 $100 $50 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1Q21 BOOKINGS 0-1 MW > 1 MW OTHER (1) INTERCONNECTION TOT
Slide 8: Connected Data Communities Attracting New Logos
Digital Ad Industrial Connected Data Communities Exchange Manufacturer Attracting New Logos 100 new logos Automotive IT Services Tech Designer Provider 39% of total bookings from 0-1 MW + interconnection Video Game eCommerce Developer Servicer 59% of total bookings outside the Americas Note: For qua
Slide 9: Top-Line Step Function: Healthy Backlog Sets a Solid Foundation
Top-Line Step Function Healthy Backlog Sets a Solid Foundation BACKLOG ROLL-FORWARD (1) COMMENCEMENT TIMING (2) $ in millions $ in millions Digital Realty Backlog Unconsolidated Joint Venture Backlog Digital Realty Backlog Unconsolidated Joint Venture Backlog $13M $4M $62M $91M $1M $6M $6M $24M $24M
Slide 10: Cycling Through Peak Vintage Renewals
Cycling Through Peak Vintage Renewals Narrowing the Gap on Cash Re-Leasing Spreads 1Q21 RE-LEASING SPREADS 0-1 MW > 1 MW OTHER (1) TOTAL RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE 1.6% -11.3% 6.3% -2.1% CASH CASH CASH CASH 2.5% 2.5% 21.0% 3.2% GAAP GAAP GAAP GAAP Sig
Slide 11: Effective Economic Risk Mitigation Strategies
Effective Economic Risk Mitigation Strategies Benefits of Scale and Diversification on Display EXPOSURE BY REVENUE (1) CORE FFO/SHARE EXPOSURE (2) USD CAD GBP EURO JPY HKD SGD AUD BRL SEK DKK CHF KES < 1% < 1% 2.0% 8% < 1% < 1% 0.4% 0.2% 20% 2% 61% 2021 $6.53 / Sh BENCHMARK GBP < 1% RATES +/- 10% <
Slide 12: Four Quarter Two-Step
Four Quarter Two-Step Beat, Dip, Shuffle, Bounce 2021E CORE FFO PER SHARE 1Q21 NOI Growth Asset Sales Normalized 2Q21 3Q21 4Q21 OpEx Note: Based on management estimates; actual performance may differ materially. Core FFO and NOI are non-GAAP financial measures. For descriptions and reconciliations t
Slide 13: 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 MATURITY SCHEDULE AS OF MARCH 31, 2021 (1)(2) DEBT PROFILE (U.S. $ in billions) 98% Unsecured 6.7 2.3 % Unsecured Secured YEARS Weighted Avg. Weighted Avg. Maturity (1)(2) Coupon (1) 94% Fixed
Slide 14: Consistent Execution on Strategic Vision
Consistent Execution on Strategic Vision Delivering Current Results, Seeding Future Growth SUCCESSFUL 1Q21 INITIATIVES 1. Delivering Sustainable Growth Named EPA ENERGY STAR® Partner of the Year for second consecutive year 2. Enhancing Portfolio Quality Sold non-core assets, extended connectivity so
Slide 15: Appendix
Appendix DIGITAL REALTY | 1Q21 FINANCIAL RESULTS | APRIL 29, 2021 | 15
Slide 16: Digital Transformation Driving Steady Demand
Digital Transformation Driving Steady Demand Global Full-Product Spectrum Provides Broadest Solutions HISTORICAL BOOKINGS TRAILING FOUR-QUARTER AVERAGE ANNUALIZED GAAP BASE RENT $ in millions $150 $100 $50 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1Q21 TRAILING FOUR-QUARTER AVERAGE B
Slide 17: Firm Fundamentals: Robust Demand, Rational Supply
Firm Fundamentals Robust Demand, Rational Supply NORTH AMERICA EMEA APAC 3,471 1,579 2,964 1,354 1,193 1,014 1Q21 1Q20 1Q21 1Q20 1Q20 1Q21 MEGAWATTS COMMISSIONED (1)(2) MEGAWATTS COMMISSIONED (1)(2) MEGAWATTS COMMISSIONED (1)(2) 90% 86% 90% 77% 93% 89% DIGITAL DIGITAL REGION DIGITAL REGION REGION RE
Slide 18: 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 19: 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 20: Reconciliation of Non-GAAP Items To Their 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 March 31, 2021 Dece
Slide 21: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Funds From Operations (FFO) to Core Funds From Operations (CFFO) (in thousands, except per share and unit data) (unaudited) Three Months Ended March 31, 2021 December 31, 2
Slide 22: Reconciliation of Non-GAAP Items To Their 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 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA (in thousands) (unaudited) Three
Slide 23: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
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, 2021 December 31, 2020 Rental revenues $ 415,860 $ 416,570 Tenant reimburseme
Slide 24: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Total Debt/Total Enterprise Value QE 3/31/21 Market value of common equity(i) $ 40,718,757 Debt Service Ratio (LQA Adjusted EBITDA/GAAP interest expense plus capitalized interest and less bridge facility fees) Liquidation value of pre