Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q1 2023 Earnings Presentation
25 slides from Digital Realty Trust's earnings presentation, Apr 27, 2023
Slide 1: 1Q23 Financial Results
1Q23 FINANCIAL RESULTS April 27, 2023 Global. Connected. Sustainable. The meeting place for companies, technologies and data
Slide 2: A Global Platform Supporting Our Customers' Data Center Requirements
A Global Platform Supporting Our Customers’ Data Center Requirements 5,000 214,000+ 50+ 310+ Customers Cross connects Metros Data Centers Coverage Capacity Deploy where you need Host what you need, how you need Connectivity Control Connect how you need Implement and operate to whom you need the way
Slide 3: Connected Data Communities: Strong 0-1 MW + IX Bookings
Connected Data Communities Strong 0-1 MW + IX Bookings 122 new logos $48 million total 1Q bookings from 0-1 MW + record Interconnection 57% of total 1Q bookings from 0-1 MW + Interconnection ~41% Auto Manufacturer Asset Manager of new signed leases contained inflation-linked increases 1Q23 Financial
Slide 4: Northern Virginia Update
Northern Virginia Update 510+ (1) DLR’s in-place IT capacity in the world’s largest data center market (2) MWs 94% in Northern Virginia, consistent with prior quarter Occupancy 516k DLR’s active development pipeline Square Feet Note: As of March 31, 2023. 1Q23 Financial Results 4 1. Represents Digit
Slide 5: Sustainability Focus and Performance
Sustainability Focus and Performance Delivering Sustainable Growth for All Stakeholders Environmental Social Governance Removed previous ownership Leader in the Light Newsweek’s America’s Most Responsible Companies of 2023 2023 requirements for shareholders to NAREIT Leader in the Light for amend by
Slide 6: 1Q23 Financial Results
1Q23 Financial Results 1Q23 Financial Results 6
Slide 7: Digital Transformation Driving Steady Demand
HISTORICAL BOOKINGS Digital ANNUALIZED GAAP BASE RENT $ in millions Transformation Driving Steady $150 Demand Global Full-Product $100 Spectrum Provides Broadest Solutions $50 • Record Interconnection Bookings in 1Q $0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 • Strong 0-1 MW Bookings 1
Slide 8: Robust Backlog
Robust Backlog BACKLOG ROLL-FORWARD (1) COMMENCEMENT TIMING (2) Strong 1Q $ in millions $ in millions Commencements $69M $112M $59M $477M $106M $434M $434M $434M $132M $47M • Robust Backlog of $434 Million $146M $420M $374M $369M • $112 Million of $201M Commencements $176M • $201 Million to Commence
Slide 9: Improving Pricing Environment
Improving Pricing 1Q23 RE-LEASING SPREADS Environment Strong Re-Leasing Spreads 0-1 MW > 1 MW OTHER (1) TOTAL RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE 4.6% 4.4% 2.8% 4.5% CASH CASH CASH CASH • 4.5% Cash Re-Leasing 5.1% 11.8% 5.9% 6.4% Spreads with Balanced GAAP GAA
Slide 10: Constant-Currency Analysis
Constant- Y/Y Growth Rate, as Reported Y/Y Growth Rate, Constant Currency Currency Analysis 21.9% Improving Fundamentals 18.8% • Further Acceleration in Same-Capital Revenue 8.6% Growth in 1Q 6.6% 5.2% • 5.2% CC Same-Capital 3.4% Cash NOI Growth Revenue Growth Same-Capital Same-Capital Cash NOI Data
Slide 11: Same-Capital Cash Net Operating Income Performance
Same-Capital Cash Net Operating Income(1) Performance Year-Over-Year % Change 6% 1Q23 Actual: 3.4% 3% 0% -3% -6% -9% (2) FY17 FY18 FY19 FY20 FY21 FY22 1Q23 1. Same –Capital Net Operating Income is a non-GAAP financial measure. For a reconciliation of Stabilized Cash Net Operating Income to the neare
Slide 12: Revenue Exposure by Currency
EXPOSURE BY REVENUE (1) 51% 25% 6% 5% 3% 2% 2% 1% 1% <1% <1% <1% <1% <1% <1% <1% <1% <1% USD EURO GBP SGD ZAR BRL JPY CHF AUD CAD SEK DKK HKD HRK KES KRW NGN MZN Revenue Exposure by Currency <1% 6% < 1% < 1% Currency Headwinds 25% 1% < 1% Abating 51% <1% 2% <1% <1% < 1% 5% • Y/Y Headwind, but Modest
Slide 13: Matching the Duration of Assets and Liabilities
€ Matching the Duration of Assets and Liabilities Modest Near-Term Maturities, Well-Laddered Debt Schedule DEBT PROFILE DEBT MATURITY SCHEDULE AS OF March 31, 2023 (1)(2) (U.S. $ in billions) $4.4 Unsecured 97% Secured Unsecured 5.0 YEARS 13 $3.0 2.8 % Weighted Avg. Weighted Avg. Maturity (1)(2) Cou
Slide 14: Q&A
Q&A Global. Connected. Sustainable. 1Q23 Financial Results 14
Slide 15: Successful 1Q23 Initiatives
Successful 1Q23 Initiatives 1. Strengthening Customer Value Proposition Record Interconnection and Strong 0-1MW bookings 2. Operating Results Inflect Upward Improving Same-Capital Growth, Positive Re-Leasing Spreads, and Strong New Logos 3. Diversifying and Bolstering Capital Sources Funding Plan on
Slide 16: Appendix
Appendix 1Q23 Financial Results 16
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
Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Reconciliation of Net Income Available to Common Stockholders to Funds From Operations (FFO) (in thousands, except per share and unit data) (unaudited) Non-GAAP Items Three Months Ended March 31, 2023 March 31, 2022 To Their Closest GAAP
Slide 20: Reconciliation of FFO to Core FFO
Reconciliation of Non-GAAP Items To Their Closest GAAP 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) Equivalent (unaudited) Three Months Ended March 31, 2023 March 31, 2022
Slide 21: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Reconciliation of Non-GAAP Items Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Net Income Available to Common Stockholders to Earnings Before Interest, To Their Closest GAAP Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA (in thousands) Equivalent (unaudited) Three
Slide 22: Reconciliation of Same Capital Cash Net Operating Income
Reconciliation of Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Same Capital Cash Net Operating Income Non-GAAP Items (in thousands) (unaudited) To Their Closest GAAP Three Months Ended March 31, 2023 March 31, 2022 Equivalent Rental revenues $ 684,585 $ 639,728 Tenant reimbursements
Slide 23: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items To Their Closest GAAP Twelve Months Ended Twelve Months Ended Twelve Months Ended December 31, 2022 December 31, 2021 December 31, 2021 December 31, 2020 December 31, 2020 December 31, 2019 Equivalent Operating income $589,969 $694,010 $694,010 $557,530 $557,530 $594
Slide 24: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items To Their Closest GAAP Twelve Months Ended December 31, 2019 December 31, 2018 Twelve Months Ended December 31, 2018 December 31, 2017 Twelve Months Ended December 31, 2017 December 31, 2016 Equivalent Operating income $594,216 $549,787 $549,787 $451,295 $451,295 $497
Slide 25: Thank you
r Thank you FN DIGITAL Lv REALTY.