Slide 1: Restoring Power
12 February 2015 February 12, 2015 Restoring Power
Slide 2: The Way Forward: Top Priorities Progress Report
The Way Forward Top Priorities Progress Report 2 • Improved ROIC ~ 60 bps year-over-year • Rolled out new sales comp plan in January 2014 • Leased 9.4 MW of finished inventory in 4Q14 • Commenced capital recycling program • Realized gain on sale of investment • Sold first non-core property • Extende
Slide 3: Macro Dashboard: Strong Dollar, Soft Crude
Macro Dashboard Strong Dollar, Soft Crude 3 1) IMF World Economic Outlook – January 2015 2) Bloomberg – January 2015 3) Bloomberg WTI Cushing Crude Oil Spot Price – January 2015 4) Nate Silver FiveThirtyEight.com – January 2015 5) FactSet – October 2014 and January 2015 6) Gartner: IT Spending World
Slide 4: Sustained Leasing Momentum, Steady Inventory Absorption
Turn-Key Flex® 132,861 $167 $22.1 million Powered Base Building® - - - Custom Solutions 104,514 $134 $14.0 million Colocation 21,328 $229 $4.9 million Non-Technical 275,746 $17 $4.8 million Total 534,449 $86 $45.9 million Type of Space Total s.f. Signed (1) Annualized GAAP Annualized GAAP Base Rent
Slide 5: Healthy Renewal Economics, Data Center Pricing on the Upswing
13% -2% 26% 7% 22% 4% -5% 15% 35% GAAP Rent Change Cash Rent Change TKF PBB Total Datacenter Healthy Renewal Economics (1) Data Center Pricing on the Upswing 1) Represents Turn-Key Flex and Powered Base Building product types signed as of 12/31/14. 5 ® ® ■ Signed renewal leases representing $17 mill
Slide 6: Robust Full-Year Leasing Volume, Recovering Market Rents
Robust Full-Year Leasing Volume Recovering Market Rents 1) GAAP rental revenues include total rent for new leases and expansion. 6
Slide 7: Significant Absorption of Finished Inventory
Significant Absorption of Finished Inventory 45% Reduction Since Investor Day (1) in megawatts 7 - 2 4 6 8 10 12 Phoenix Silicon Valley Dallas Boston Houston NY Metro N. Virginia Chicago Nov. 12, 2013 Dec. 31, 2014 1) Reflects the reduction of finished inventory throughout the entire portfolio. Fini
Slide 8: U.S. Major Market Data Center Supply
U.S. Major Market Data Center Supply (1) Sub-Lease Availability Is Dwindling 1) Based on Digital Realty internal estimates. 2) Represents Digital Realty’s available finished data center space and available active data center construction. 8 in megawatts - 20 40 60 Boston Chicago Dallas Houston N Vir
Slide 9: Top-Tier Track Record
0% 10% 20% 30% #1 #2 #3 #4 #5 RMZ $0 $2 $4 $6 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Top-Tier Track Record Top Total Return; Consistent Growth in Cash Flows Source: Bloomberg. As of December 31, 2014. 1) FFO is a non-GAAP financial measure. For a definition of FFO and a reconciliation to
Slide 10: Top-Three Growth in Dividend and Cash Flow
9% 13% 15% 15%16% 0% 5% 10% 15% 20% PSAELSOHIDLREXR Top-Three Growth in Dividend and Cash Flow Steady Growth, Low Volatility FFO / Share CAGRDividend / Share CAGR 10 Source: SNL Financial as of February 11, 2015. 1) Increase driven in part by ELS’ leveraged recapitalization executed in 2004 which sa
Slide 11: Premium Track Record at a Discounted Valuation
Premium Track Record At a Discounted Valuation Source: Citi Investment Research (theHunter Express and Lodging Valuation Tool, dated Wednesday, February 11, 2015) 1) AFFO is a non-GAAP financial measure. For a definition of AFFO and a reconciliation to its closest GAAP equivalent, see the Appendix.
Slide 12: Credit Metrics Compare Favorably to Blue Chip REITs
4.7x 4.5x 4.2x 4.0x 4.0x 3.4x 3.0x 0.0x 2.0x 4.0x 6.0x DLR AVB SPG FRT KIM EQR BXP 4.5x 4.2x 3.9x 3.4x 3.4x 2.9x 3.1x 0.0x 2.0x 4.0x 6.0x AVB SPG FRT EQR DLR BXP KIM 6.7x 6.2x 5.9x 5.7x 5.2x 5.1x 5.0x 0.0x 3.0x 6.0x 9.0x KIM EQR DLR BXP AVB FRT SPG 6.1x 5.5x 5.5x 5.2x 5.1x 5.0x 4.8x 0.0x 2.0x 4.0x 6
Slide 13: Putting Exposure in Perspective
USD 75% GBP 13% EUR 8% Other 4% IT Services 34% Telecom Network Providers 24% Financial Services 16% Other Corp Enterprise 20% Internet Enterprise (2) 5% Guidance Range Putting Exposure in Perspective Benefits of Diversification and Scale on Display 1) Calculation based on annualized base rents (mon
Slide 14: Enhanced Supplemental Disclosure
Enhanced Supplemental Disclosure Committed to Transparent Investor Communication 14 CIP + Land broken out on balance sheet Net Effective Rent disclosure IT Load by property Cash NOI from unconsolidated JVs NAREIT-defined FFO guidance Cleaner CapEx classification
Slide 15: Cleaner CapEx Classifications
Cleaner CapEx Classifications Lower Budget, More Conservative Presentation in 2015 15 Guidance $920 - $980 million $870 - $985 millionGrand Total CapEx Spending $40 million N/A $25 - $30 million $35 - $40 million $100 - $110 million $120 - $135 million Development Spending Total Development CapEx N/
Slide 16: Consistent Execution on Strategic Vision
Consistent Execution on Strategic Vision It Was a Very Good Year…. Leased 28 megawatts of finished inventory Generated 20 megawatts of positive net absorption Improved ROIC by 60 bps (not including impairments) Boosted portfolio occupancy by 60 bps Reported 4% growth in same-capital cash N
Slide 17: Appendix
Appendix 17
Slide 18: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures 18 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 d
Slide 19: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures 19 EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA) AND ADJUSTED EBITDA We believe that earnings before interest expense, income taxes, depreciation and amortization, or EBITDA, and Adjusted EBITDA (as defined below), are useful suppl
Slide 20: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent 20 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) Digital Realty Trust, Inc. and Subsidiaries R
Slide 21: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent 21 Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Operating Income to Net Operating Income (NOI) (unaudited, in thousands) Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Net Income Available to Common Sto
Slide 22: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent 22 December 31, 2014 December 31, 2013 December 31, 2012 December 11, 2011 December 31, 2010 FFO available to common stockholders and unitholders 691,966$ 636,426$ 557,672$ 449,288$ 327,473$ Add: Series C convertible preferred dividen
Slide 23: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent 23 Funds from operations (1) Q414 Q314 Q214 Q114 FY2014 Q413 Q313 Q213 Q113 FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 Net income (loss) available to common stockholders ($52,289) $109,314 $41,510 $34,186 $132,721
Slide 24: 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