Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Investor Presentation (November 2018)
81 slides from Digital Realty Trust's investor presentation, November 2018
Slide 1: Global. Connected. Sustainable.
Global. Connected. Sustainable. INVESTOR PRESENTATION NOVEMBER 2018 Digital Realty the trusted foundation | powering digital ambitions
Slide 2: Business Highlights
Business Highlights 1 SUBSEQUENT EVENTS Post third-quarter 2018 interim update 2 DIGITAL REALTY OVERVIEW Introduction 3 INTRODUCTION TO DATA CENTERS Data center 101 4 GLOBAL PLATFORM Growing world-wide demand from a diversified customer base 5 CONNECTED CAMPUS STRATEGY Solving for the complete deplo
Slide 3: Graham's Golden Rules
GRAHAM’S GOLDEN RULES Defensive Requirements for the Intelligent Investor (1) 1 Adequate Size of the Enterprise $35 Bn ENTERPRISE VALUE (2) 2 Sufficiently Strong Financial Condition BBB / Baa2 / BBB INVESTMENT GRADE BALANCE SHEET 3 Earnings Stability GFC + GROWTH IN CORE FFO / SH EACH AND EVERY YEAR
Slide 4: Funding Secured
FORWARD SALE AGREEMENTS PROACTIVELY ADDRESS NEAR-TERM CASH NEEDS Funding Secured SOURCES OF FUNDS ($ in billions) USES OF FUNDS ($ in billions) Cash Flow from Operations (1) $0.7 Bn Ascenty Investment (49% Interest) (3) $0.3 Bn Forward Equity Offering (2) $1.1 Bn Western Lands Purchase $0.2 Bn Credi
Slide 5: Reports of Cloud CapEx Demise Greatly Exaggerated
MULTI-BILLION-DOLLAR BUSINESSES GROWING AT HEALTHY DOUBLE-DIGITS Reports of Cloud CapEx Demise Greatly Exaggerated Hyper-Scale Cloud CapEx vs. Revenue Growth Cloud Revenue Growth (4) 2Q18 3Q18 Public Cloud Year-over-Year Revenue Growth (1) 60% 53% 49% 46% 47% Forward 40% Sale Agreements $6.7 BnProac
Slide 6: It's All Relative!
VALUATIONS ARE LIKE FAMILY It’s All Relative! Digital Realty Forward FFO Multiple Relative to REIT Sector Average(1) 50% 50% 25% 25% 0% 0% -25% -25% -50% -50% 2005 2007 2009 2011 2013 2015 2017 Source: SNL. 1) DLR price to rolling forward 12-month FFO multiple (based on SNL consensus estimates), div
Slide 7: At a Reasonable Valuation
SUPERIOR GROWTH PROSPECTS At a Reasonable Valuation (1)(2) (2) 2018E AFFO Multiple / 2018E AFFO Growth 2018E AFFO Growth 6.0x 15% 5.6x 12% 4.9x 11% 4.0x 10% REIT Universe Weighted Average PEG Ratio = 3.7x 8% 3.4x 3.2x 2.0x 5% 5% 4% 1.6x 1.4x 3% .0x 0% Data Centers Digital Realty CBD Office Lodging A
Slide 8: Delivering Superior Risk-Adjusted Returns
DELIVERING SUPERIOR RISK-ADJUSTED RETURNS Investing Opportunistically to Expand the Global Platform LTM 2Q17 LONG-TERM VALUE CREATION LTM 2Q18 PRE-LEASING (%) 2Q17 39% 2Q18 62% LEASE TERM (Years) 2Q17 6 2Q18 8 CREDIT QUALITY (% Investment Grade)1 2Q17 30% 2Q18 40% SPREAD OVER COST OF CAPITAL LONGER
Slide 9: Digital Realty Overview
Digital Realty Overview Digital Realty Overview INTRODUCTION INVESTOR PRESENTATION | NOVEMBER 2018 9
Slide 10: Leading Global Data Center REIT
DIGITAL REALTY AT A GLANCE (NYSE: DLR) Leading Global Data Center REIT Investment Management High-Quality Customer Base, including Approach Focused on Global Companies Across Return on Invested Capital Various Industries 198 DATA CENTERS (1) $24 Bn EQUITY MARKET CAPITALIZATION (3) 2,300+ CUSTOMERS 3
Slide 11: Three-Year Guideposts
THE NEXT HORIZON Three-Year Guideposts OUR FOCUS SUPERIOR RETURNS CAPITAL ALLOCATION Our philosophy is to deliver superior 1 Deliver superior risk-adjusted 2 Prudently allocate capital to opportunistically total returns extend global campus footprint returns by capitalizing on our core competencies
Slide 12: Aligning Go-to-Market with Customer Buying Behavior
MEETING OUR CUSTOMERS’ GROWING DATA CENTER NEEDS Aligning Go-to-Market with Customer Buying Behavior Our Customers Aligning our Go-to-Market strategy with our customers’ unique needs and the way they buy Global, Diverse Customer Base Customer-Centric Alignment Customers Comprehensive Global Global E
Slide 13: Global Real Estate Reach, Complementary Product Mix
ALIGNING CORE COMPETENCIES WITH CUSTOMERS Global Real Estate Reach, Complementary Product Mix Our Core Competencies Capitalizing on our competitive advantages that include large scale campuses, network-dense interconnection hubs and diversified product offering on a global basis REAL ESTATE EXPANSIV
Slide 14: Full Spectrum of Data Center Solutions Across a Global Platform
SUPPORTING OUR CUSTOMERS’ GROWTH Full Spectrum of Data Center Solutions Across a Global Platform 198 12 32 32+ DATA CENTERS (1) COUNTRIES (1) METROPOLITAN AREAS (1) MILLION RENTABLE SQ. FT. (1)(2) INTERCONNECTION COLOCATION SCALE HYPER-SCALE Note: Data as of September 30, 2018 unless otherwise noted
Slide 15: Introduction to Data Centers
Introduction to Data Centers DATA CENTER 101 INVESTOR PRESENTATION | NOVEMBER 2018 15
Slide 16: What is a Data Center?
DATA CENTER 101 What is a Data Center? 1 Building Shell 2 Electrical Systems Data Center Layout 3 HVAC / Mechanical Systems Building Shell 4 Building Fit-Out / Site Work Data Centers HVAC Data centers are designed to Electrical Utility Service ( Not Shown in Image) house servers and network Mechanic
Slide 17: What Goes into Building a Data Center?
DATA CENTER 101 What Goes into Building a Data Center? 1 BUILDING SHELL 2 ELECTRICAL SYSTEMS Data Center Cost Distribution • Building Shell Building • Generator • Raised Floor Shell • Batteries 22% • Power Distribution Unit (PDU) Electrical • Uninterruptible Power Supplies Systems (UPS) 40% 3 HVAC /
Slide 18: Comprehensive Customer-Focused Product Suite
FOCUSED PURSUIT Comprehensive Customer-Focused Product Suite Flexible solutions meeting customers’ needs in space, colo and interconnection through one provider SCALE COLOCATION CONNECTIVITY Solution to scale from a medium Enabling small (one cabinet) to Connecting customers & partners 300+ kW to ve
Slide 19: What is a Cross-Connect?
INTERCONNECTION What is a Cross-Connect? INTERCONNECTION CONTENT NETWORK CONNECTING PARTNERS AND NETWORKS A cross-connect is a physical layer network connection between two parties. The cross-connect is enabled by the installation of patch cord(s) between ports of the respective parties’ interconnec
Slide 20: Customers' Desired IT End State
HOME TO THE HYBRID MULTI-CLOUD SOLUTION Customers’ Desired IT End State The majority of companies deploy some form of hybrid cloud solution to run and manage their IT needs PRIVATE PUBLIC CLOUD SOLUTIONS CLOUD SOLUTIONS Single organization, Service providers, dedicated environment many customers 4%
Slide 21: The Second Wave of Cloud
NEXT GENERATION DRIVERS The Second Wave of Cloud ARTIFICIAL INTELLIGENCE MARKET FORECAST (1) INTERNET OF THINGS (IoT) MARKET FORECAST (2) ($ in billions) (IoT Units Installed in millions) $60 76% $34 $47 34% 20,415 CAGR (‘16 - ‘25) CAGR (‘16 - ‘20) $24 $16 11,197 $11 8,381 $4 $7 6,382 $0 $2 2016 201
Slide 22: Global Platform
Global Platform GROWING WORLD-WIDE DEMAND FROM A DIVERSIFIED CUSTOMER BASE INVESTOR PRESENTATION | NOVEMBER 2018 22
Slide 23: Nearly 200 Data Centers Across More Than 30 Metro Areas
COVERING THE WATERFRONT Nearly 200 Data Centers Across More Than 30 Metro Areas Seattle Minneapolis / St. Paul Portland Toronto Boston Tokyo San Francisco Manchester New York Osaka Metro Amsterdam Chicago Silicon Valley Northern Dublin Denver Virginia London Hong Kong Charlotte Frankfurt Los Angeles
Slide 24: Numerous Customers with Multiple Locations Across the Portfolio
HIGH-QUALITY, DIVERSIFIED CUSTOMER BASE Numerous Customers with Multiple Locations Across the Portfolio TOP 20 CUSTOMERS Customer Rank Locations % of ABR(1) Customer Rank Locations % of ABR(1) CUSTOMER TYPE (% by ABR) (1) 1 27 6.4% 11 Fortune 500 7 1.9% Network Information SaaS Provider 19% Technolo
Slide 25: Deliver Basic Services, Enable Partners
GLOBAL SERVICE INFRASTRUCTURE PLATFORM Deliver Basic Services, Enable Partners Digital Realty is Focused on Providing the Real Estate Foundation to Enable Customers & Partners to Service Thousands of Their Customers Focused on Real Estate Foundation Funnel Approach Towards Customers CLOUD SERVICES T
Slide 26: Strategic Alliances Bearing Fruit
ENABLING CUSTOMERS AND PARTNERS Strategic Alliances Bearing Fruit Strategic alliance for network-enabled colocation services AT&T will continue to resell Digital Realty colocation capacity AT&T AT&T Colocation Services Network-Enabled Network from Digital Realty Colocation Services • Global connecti
Slide 27: Connected Campus Strategy
Connected Campus Strategy SOLVING FOR THE COMPLETE DEPLOYMENT; LAND AND EXPAND INVESTOR PRESENTATION | NOVEMBER 2018 27
Slide 28: Solving for the Complete Deployment; Land and Expand
MULTI-TIERED CLOUD ARCHITECTURES Solving for the Complete Deployment; Land and Expand Connected Campus Network Access Nodes Higher COLO • High network requirements to efficiently distribute and aggregate Performance traffic • Applications: network connectivity, network peering and WAN optimization •
Slide 29: Digital Ashburn
THE CONNECTED CAMPUS Digital Ashburn 70% 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… 664 acres 370 …in addition to 664 W holdings acres of land that will support the build-out Digital of another R
Slide 30: Expand, Tether, and Densify Data Center Campuses
DENSITY AT SCALE AND AT HUBS Expand, Tether, and Densify Data Center Campuses CHICAGO CAMPUS NEW YORK CAMPUS DALLAS CAMPUS LONDON CAMPUS 350 E. CERMAK 111 8th AVENUE 2323 BRYAN STREET SOVEREIGN HOUSE Connect@Scale suites, Connect@Scale suites, Connect@Scale suites, Connect@Scale suites, Powered Base
Slide 31: Network Density That Promotes Innovation and Collaboration
DIGITAL REALTY IS THE EDGE Network Density That Promotes Innovation and Collaboration 12 CITIES 77k 1600+ 10 ASSETS CROSS-CONNECTS NETWORK INSTANCES Globally Where Our GLOBALLY With Over 2,000 GLOBALLY Internet Gateways Cross-Connects Each Are Located 50,000+ Cross-Connects and 630+ Networks: 111 8t
Slide 32: Diversifying Product Offerings
DIVERSIFYING PRODUCT OFFERINGS Facilitating Secure Connections to Multiple Service Providers 12 3 Private Access to METRO AREAS METRO AREAS SaaS Applications ACROSS ACROSS EMEA NORTH AMERICA A software-defined network (SDN) that allows a customer to establish direct, private connections to multiple
Slide 33: Attractive Growth Prospects
Attractive Growth Prospects Digital Realty Overview ORGANIC GROWTH COMBINED WITH LEASE-UP OPPORTUNITY INVESTOR PRESENTATION | NOVEMBER 2018 33
Slide 34: Significant Customer Investment Drives Stable Retention
HIGH UTILIZATION PROVIDES DOWNSIDE PROTECTION Significant Customer Investment Drives Stable Retention Historical Retention on Rentable Square Feet (1) Trailing Twelve-Month Tenant Retention Long-Term Historical Average $15 – $30 100% million approximate cost of a new 1.125 MW data center deployment(
Slide 35: Evenly-Staggered Lease Expiration Schedule
EVENLY-STAGGERED LEASE EXPIRATION SCHEDULE Consistent, Modest Roll-Over Exposure in Any One Year % of Lease Expirations by Annualized Base Rent (1) 40% Scale Colocation 2% - 4% Annual cash rental rate increases (2) 30% 22.5% 20% 10% 12.0% 11.3% 11.4% 8.3% 6.9% 6.3% 8.2% 4.5 years 4.7% 5.1% Weighted
Slide 36: Cyclical Agnostic Performance Compares Favorably
UNINTERRUPTED GROWTH THROUGHOUT THE CYCLE Cyclical Agnostic Performance Compares Favorably Twelve Consecutive Years of Positive Growth Financial Crisis 2006 – 2018E FFO / 500 Share CAGR(1) 400 DLR: 12.4% 300 PSA: 9.4% SPG: 7.0% 200 AVB: 6.5% BXP: 3.1% EQR: 3.1% 100 KIM: (3.4%) 0 2006 2007 2008 2009
Slide 37: Thirteen Consecutive Years of Dividend Increases
COMMITTED TO A SECURE AND GROWING DIVIDEND Thirteen Consecutive Years of Dividend Increases (2) Cash Dividend / Common Share AFFO Payout Ratio $4.04 $3.72 4% $3.52 $3.32 $3.40 $3.12 $2.92 $2.72 DIVIDEND YIELD(1) $2.02 $1.47 $1.00 $1.08 $1.17 $1.26 12% CAGR 93% 95% 78% 79% 84% 84% 86% 78% (2005 – 201
Slide 38: Strong Growth, Moderate Volatility
EXCEPTIONAL RISK-ADJUSTED GROWTH TRACK RECORD Strong Growth, Moderate Volatility Consistently Delivered Healthy Growth in FFO and Dividends per Share 12-Year FFO / Share Risk-Adjusted Growth(1) 12-Year Dividend / Share Risk-Adjusted Growth(2) Median REIT Median REIT Above-average (12 –Year Dividend
Slide 39: Prudent Capital Allocation
Prudent Capital Allocation DISCIPLINED INVESTMENT CRITERIA GUIDED BY RETURN ON INVESTED CAPITAL INVESTOR PRESENTATION | NOVEMBER 2018 39
Slide 40: Stringent Acquisition Criteria
STRINGENT ACQUISITION CRITERIA Market Fundamentals, Accessibility, Stability and Risk 2010 2012 2015 2016 2017 2018 365 Main Sentrum European DuPont Fabros Portfolio Portfolio Telx Acquisition Portfolio Technology Ascenty Five assets in the Three assets in London 20 assets in 13 metro Eight assets i
Slide 41: Key Elements of Investment Underwriting
STRINGENT ACQUISITION CRITERIA Market Fundamentals, Accessibility, Stability and Risk KEY ELEMENTS OF INVESTMENT UNDERWRITING Market Fundamentals Accessibility / Business-Friendly / Internet Proximity Stable Locations § Core metro areas / major § Access to fiber § Accommodative local utility central
Slide 42: Conservative Financial Strategy
Conservative Financial Strategy COMMITTED TO MAINTAINING A FLEXIBLE BALANCE SHEET INVESTOR PRESENTATION | NOVEMBER 2018 42
Slide 43: Positioning for Growth
PRUDENT FINANCIAL MANAGEMENT Positioning for Growth INVESTMENT GRADE BALANCE SHEET Consistently maintain balance sheet positioned for new investment opportunities ORGANIC GROWTH Focus on driving higher same-capital cash NOI growth RISK-ADJUSTED RETURNS Earn higher risk-adjusted returns on our tradit
Slide 44: Track Record and Commitment to Energy Efficiency
INDUSTRY LEADING SUSTAINABILITY Track Record and Commitment to Energy Efficiency Award-winning Management and Track record of data center organizational sustainable Industry-leading designs and Thought leadership commitment to project clean energy third-party and innovation in sustainability investm
Slide 45: Committed to a Conservative Capital Structure
CREDIT METRICS COMPARE FAVORABLY TO BLUE CHIP REITS Committed to a Conservative Capital Structure Net Debt / LQA Adjusted EBITDA(1) Net Debt + Preferred / LQA Adjusted EBITDA(1) 8x 8x 7.4x 6.8x 6.7x 6.5x 6.5x 6.2x 5.9x 5.6x 6x 5.3x 5.2x 5.2x 6x 5.2x 4.9x 4.9x 4.6x 4.6x 4.4x 4.4x 4x 4x 2x 2x -- -- BX
Slide 46: Recent Results
Recent Results THIRD QUARTER 2018 HIGHLIGHTS Note: The slides in this section were originally posted to the Company's website on October 25, 2018 and have not been updated to reflect changes occurring after that date. INVESTOR PRESENTATION | NOVEMBER 2018 46
Slide 47: 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 8th America, providing a full spectrum of offerings, including colocatio
Slide 48: Firm Fundamentals: Robust Demand, Rational Supply
Firm Fundamentals Robust Demand, Rational Supply NORTH AMERICA EMEA APAC 2,025 2,381 1,082 848 974 752 3Q17 3Q18 3Q17 3Q18 3Q17 3Q18 MEGAWATTS COMMISSIONED(1)(2) MEGAWATTS COMMISSIONED(1)(2) MEGAWATTS COMMISSIONED(1)(2) 90% 87% 90% 85% 91% 95% DIGITAL DIGITAL DIGITAL REGION REALTY REGION REALTY REGI
Slide 49: 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% q 3.7% 3.7% U.S. GDP Growth Forecast (1) MACROECONOMIC 2018E: 2.9% 2018E: 2.9% tu 2.9% 2.5%
Slide 50: Financial Results
Financial Results INVESTOR PRESENTATION | NOVEMBER 2018 | 50
Slide 51: Lumpy But Healthy
Lumpy But Healthy Comprehensive Solutions Support Diverse Customer Base HISTORICAL BOOKINGS ANNUALIZED GAAP BASE RENT(1)(2) $ in millions $100 $75 $50 $25 $0 2009 1Q 2Q 2010 3Q 4Q 1Q 2Q 2011 3Q 4Q 1Q 2Q 2012 3Q 4Q 1Q 2Q 2013 3Q 4Q 1Q 2Q 2014 3Q 4Q 1Q 2Q 2015 3Q 4Q 1Q 2Q 2016 3Q 4Q 1Q 2Q 2017 3Q 4Q 1
Slide 52: Top-Line Step Function
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 $148 $148 $142 $76 2Q18 Backlog Signings Commencements 3Q18 Backlog
Slide 53: 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 54: 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 Guidance 0.1% 0.1% $6.55 – $6.65(1) EUR BENCHMARK 0% +/- 10% RATES +/- 100 bps 3% 1% YEAR-TO
Slide 55: 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 5 YEARS 3.5 % Unsecured Secured Weighted Avg. Weighted Avg. Maturity(1)(2) Coupon(1) 87% Fixed $2.
Slide 56: 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 6 YEARS 3.6 % Unsecured Secured Weighted Avg. Weighted Avg. Maturity(1)(2) Coupon(1) $2.2 87% Fixed Fixed Floating $
Slide 57: Consistent Execution on Strategic Vision
Consistent Execution on Strategic Vision Delivering Current Results, Seeding Future Growth SUCCESSFUL THIRD QUARTER 2018 INITIATIVES 1. Deepening Connections with Customers $69 mm 3Q18 Total Bookings Delivered second-highest quarterly bookings, achieved record backlog 2. Extending our Global Footpri
Slide 58: 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 59: Strategic Acquisition of Ascenty
Strategic Acquisition of Ascenty LEADING DATA CENTER PROVIDER IN LATIN AMERICA INVESTOR PRESENTATION | NOVEMBER 2018 | 59
Slide 60: Navigating the Future
NAVIGATING THE FUTURE Sustainable Growth for Customers, Shareholders & Employees GLOBAL CONNECTED SUSTAINABLE 140+ Customers #1 Market Share 2004 2006 2016 2006 2004 2017 NUMEROUS COMPUTE & ASCENTY HAS THE LEADING MARKET SHARE 2018 2010 NETWORK NODES WITH THE IN BRAZIL AMONG MULTI-TENANT 2011 TOP 5
Slide 61: Strategic Acquisition of Ascenty
TRANSACTION OVERVIEW Strategic Acquisition of Ascenty Transaction • Entered into a definitive agreement to acquire Ascenty, a leading data center provider in Latin America • Total purchase price of approximately $1.8 billion (before contractual purchase price adjustments, transaction expenses, Overv
Slide 62: $1.0 Billion Forward Common Equity Offering
OFFERING SUMMARY $1.0 Billion Forward Common Equity Offering Sources Amount Uses Amount Sources & Uses Equity Raised by DLR $1,000 Equity Investment in Ascenty Joint Venture $323 ($ in mm) Repayment of Revolver Borrowings or General Corporate Purposes 605 Transaction Costs (1) 73 Total Sources $1,00
Slide 63: Ascenty At-a-Glance
ASCENTY At-a-Glance Fortaleza Leading data center provider in Latin America, providing a full spectrum of offerings, including colocation and connectivity to hyperscale deployments, with an in-service portfolio of eight purpose-built, world class data centers and six data center development projects
Slide 64: Joint Venture Overview
JOINT VENTURE OVERVIEW Unparalleled Expertise to Execute in Latin America Leading global provider of data center, Leading global asset manager with Highly experienced management team with colocation and interconnection solutions 115 years of experience owning and a proven track record in for custome
Slide 65: Leading Position in Rapidly Growing Latin American Region
POSITIVE MACROECONOMIC TRENDS Leading Position in Rapidly Growing Latin American Region 8TH LARGEST ECONOMY 5TH LARGEST POPULATION #1 MARKET SHARE 2018E GDP BRAZILIAN MULTI-TENANT DATA CENTER Country (USD in trillions) 2018 WORLD POPULATION (in millions) MARKET SHARE LEADERS (1) 1. United States $20
Slide 66: At the Epicenter of Brazil's Digital and Connectivity Hubs
KEY BRAZILIAN METROPOLITAN AREAS At the Epicenter of Brazil’s Digital and Connectivity Hubs METROPOLITAN AREAS SÃO PAULO 1 § Largest city in Brazil and Latin America and the fourth largest city in the world § São Paulo’s role as Brazil’s financial center has made it an important international digita
Slide 67: Large Scale, High-Quality Portfolio with Embedded Growth
LEADING LATIN AMERICA DATA CENTER PROVIDER Large Scale, High-Quality Portfolio with Embedded Growth SÃO PAULO 8 In-Service Under-Construction 14 IN-SERVICE 6 SÃO PAULO I JUNDIAI II STATE-OF-THE-ART SÃO PAULO II VINHEDO I JUNDIAI I DATA CENTERS UNDER-CONSTRUCTION CAMPINAS In-Service Under-Constructio
Slide 68: Proprietary Fiber Network Provides Competitive Advantage
DIFFERENTIATED CONNECTIVITY SOLUTIONS Proprietary Fiber Network Provides Competitive Advantage § Allows for strategic site selection and highly interconnected data centers § ~95% contracted revenue from clients taking both data center and fiber services § Strategically connects Ascenty facilities wi
Slide 69: Meeting Our Customers' Needs in New Markets
COMPLEMENTARY CUSTOMER BASE Meeting Our Customers’ Needs in New Markets CUSTOMER PROFILE 140+ ~120 >90% ~75% Ascenty Customers (3) New Global Investment Grade U.S. Dollar Customer Logos or Equivalent Denominated Customers (1) Contracts (2) Note: Data as of acquisition signing date. 1) Figures based
Slide 70: Extending Customer Reach
LEADING GLOBAL DATA CENTER PROVIDER Extending Customer Reach § New Latin American Platform to Accelerate Growth § Strengthens Position Globally § Improves Global Customer Base and Further Deepens Existing Customer Relationships § Strategic High Value Assets and Proprietary Fiber Network § Compelling
Slide 71: Primary Forward Sale of Equity
PRIMARY FORWARD SALE OF EQUITY Transaction Overview Forward sale structure allows DLR to lock in equity financing for the acquisition and avoid per share dilution prior to the acquisition closing Description Transaction Mechanics (Inception) • Allows DLR to capitalize on market conditions and lock-i
Slide 72: Appendix
Appendix INVESTOR PRESENTATION | NOVEMBER 2018 | 72
Slide 73: 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 74: Management Statements on Non-GAAP Measures
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 75: Forward-Looking Statements
Appendix 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 rel
Slide 76: Stabilized EBITDA Estimate
Appendix Stabilized EBITDA Estimate Our stabilized EBITDA estimate is comprised of (i) our estimate of annualized run-rate EBITDA for Ascenty based on Ascenty’s EBITDA for the month ended July 31, 2018, which is the most recently completed full month for which Ascenty provided us with financial info
Slide 77: 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 Nine Months Ended S
Slide 78: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent (1) Funds from operations FY 2017 FY 2016 FY2015 FY2014 FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 Net income (loss) available to common stockholders $ 173,149 $ 332,088 $ 217,266 $ 132,721 $ 271,583 $ 171,662 $ 13
Slide 79: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Cash interest expense and fixed charges (including discontinued operations) FY 2017 FY 2016 FY2015 FY2014 FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 Total GAAP interest expense (including discontinued operations) $
Slide 80: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Net Debt/LQA Adjusted EBITDA QE 09/30/18 QE 09/30/18 Debt Service Ratio (LQA Adjusted EBITDA/GAAP interest expense plus capitalized interest and less bridge facility fees) Total debt at balance sheet carrying value $ 9,179,871 Total G
Slide 81: Digital Realty the trusted foundation | powering your digital ambitions
Digital Realty the trusted foundation | powering your digital ambitions 81
Digital Realty Trust — Investor Presentation (November 2018) on 6ix