Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q2 2021 Earnings Presentation
23 slides from Digital Realty Trust's earnings presentation, Jul 30, 2021
Slide 1: 2Q21 Financial Results
Global. Connected. Sustainable. 2Q21 FINANCIAL RESULTS JULY 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 | 2Q21 FINANCIAL RESULTS | JULY 29, 2021 | 2
Slide 3: Serving a Social Purpose
Serving a Social Purpose Delivering Sustainable Growth for All Stakeholders ENVIRONMENTAL SOCIAL GOVERNANCE Published third Formalized ESG oversight Published EEO-1 report, providing annual ESG report in June 2021 transparency on the racial and gender composition of the U.S. workforce 2021 under the
Slide 4: Expanding Global Platform Supporting Customer Growth
Seoul Singapore Expanding Global Platform Supporting Customer Growth Marseille Mumbai Toronto Global Platform 170,000+ 4,000+ 47 Cross-Connects Customers Metro Areas Note: As of June 30, 2021. DIGITAL REALTY | 2Q21 FINANCIAL RESULTS | JULY 29, 2021 | 4
Slide 5: Digital Transformation Driving Data Center Demand
Digital Transformation Driving Data Center Demand Seoul PlatformDIGITAL® Poised to Capitalize Data Gravity CAGR (1) Frankfurt 152% Data Gravity CAGR (1) New York 144% Data Gravity CAGR (1) 132% Singapore Zurich Data Gravity Data Gravity CAGR (1) London CAGR (1) 200% Data Gravity 135% Mumbai CAGR (1)
Slide 6: Financial Results
Financial Results DIGITAL REALTY | 2Q21 FINANCIAL RESULTS | JULY 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 $150 $100 $50 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2Q21 BOOKINGS 0-1 MW > 1 MW OTHER (1) INTERCONNECTION TOTAL BOOKIN
Slide 8: Connected Data Communities Attracting New Logos
Customer Data Digital Healthcare Connected Data Communities Platform & Biotech Attracting New Logos 109 new logos European Financial Broadcaster Services 47% of total bookings from 0-1 MW + interconnection Computer Cloud & Media Technology Provider 44% of total bookings outside the Americas Note: Fo
Slide 9: Top-Line Step Function
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 $11M $2M $89M $102M $6M $2M $24M $8M $24
Slide 10: Cycling Through Peak Vintage Renewals
Cycling Through Peak Vintage Renewals Narrowing the Gap on Cash Re-Leasing Spreads 2Q21 RE-LEASING SPREADS 0-1 MW > 1 MW OTHER (1) TOTAL RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE 0.8% -0.9% -5.7% 0.1% CASH CASH CASH CASH 1.9% 2.1% 6.2% 2.1% GAAP GAAP GAAP GAAP Signe
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% 7% < 1% 1% 0.7% 0.1% 20% 2% 61% 2021 $6.48 / Sh BENCHMARK GBP < 1% RATES +/- 10% < 1%
Slide 12: Four-Quarter Two-Step Building Momentum
Four-Quarter Two-Step Building Momentum 2021E CORE FFO PER SHARE 1Q21 2Q21 Deferred Tax NOI Growth Normalized 3Q21 4Q21 Impact OpEx Note: Based on management estimates; actual performance may differ materially. Core FFO and NOI are non-GAAP financial measures. For descriptions and reconciliations to
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 JUNE 30, 2021 (1)(2) DEBT PROFILE (U.S. $ in billions) 98% Unsecured 6.4 2.2 % Unsecured Secured YEARS Weighted Avg. Weighted Avg. Maturity (1)(2) Coupon (1) $2.0 90% F
Slide 14: Consistent Execution on Strategic Vision
Consistent Execution on Strategic Vision Delivering Current Results, Seeding Future Growth SUCCESSFUL 2Q21 INITIATIVES 1. Enhancing Product Mix Reached high-water mark for 0-1 MW + interconnection bookings 2. Delivering Sustainable Growth for Stakeholders Published third annual ESG Report 3. Acceler
Slide 15: Appendix
Appendix DIGITAL REALTY | 2Q21 FINANCIAL RESULTS | JULY 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 2Q21 TRAILING FOUR-QUARTER AVERAGE B
Slide 17: 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 18: 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 19: Reconciliation of Net Income to FFO
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 Six Months Ended Ju
Slide 20: Reconciliation of FFO to Core FFO
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 Six Months Ended June 30, 202
Slide 21: Reconciliation to EBITDA and Adjusted EBITDA
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 22: Reconciliation of Same Capital Cash NOI
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 Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Rental revenue
Slide 23: Reconciliation of Non-GAAP Items: Leverage and Coverage Ratios
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Total Debt/Total Enterprise Value QE 6/30/21 Debt Service Ratio (LQA Adjusted EBITDA/GAAP interest expense plus capitalized interest and less bridge facility (i) Market value of common equity $ 43,582,029 fees) Liquidation value of pr