Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q1 2025 Earnings Presentation
27 slides from Digital Realty Trust's earnings presentation, Apr 24, 2025
Slide 1: 1Q25 Financial Results
1Q25 FINANCIAL RESULTS April 24, 2025 Global. Connected. Sustainable. The meeting place for companies, technologies and data
Slide 2: Executing on Key Strategic Priorities
Executing on Key Strategic Priorities Positioned for Long-Term Sustainable Growth 5,000+ 228,000+ Diversify and Customers Cross Connects Strengthen Our Innovate & Integrate 1 2 3 Bolster Capital Customer Value for Our Customers 50+ 300+ Proposition Sources Metros Data Centers Digital Realty and $242
Slide 3: Offering a Global Data Center Platform
Offering a Global Data Center Platform Capacity in World’s Major Metros to Meet Growing Customer Demand Global Capacity ~2,760 MW in place IT capacity ~3,500 MW buildable IT capacity 814 MW under construction 219 MW 49 MW new starts in 1Q delivered in 1Q 1Q25 Financial Results 3
Slide 4: Enabling the Meeting Place
Enabling the Meeting Place Strong 0-1MW + IX 1Q25 Results 119 New Logos Added $69M 1Q Bookings from 0-1MW + Interconnection 28% of total 1Q bookings from 0-1 MW + Interconnection 1Q25 Financial Results 4
Slide 5: PlatformDIGITAL Provides Customers with Global Connectivity
PlatformDigital® Provides Customers with Global Connectivity Entry Into Indonesia Heraklion HER1 Connectivity Advances Bersama Cloud On-Ramp CGK10 & CGK11 $95M Experienced DLR Contributed(1) Three New Azure Local Management On-Ramps 50% 50% BDDC Ownership DLR Ownership HER1 Connecting Europe to Asia
Slide 6: Bolstered, Diversified…and Evolved
Bolstered, Diversified…and Evolved Significant Progress on First U.S. Hyperscale Data Center Fund + Digital Realty launches U.S. Hyperscale Data Center Fund targeting ~$2.5B of LP equity commitments Fund + Received subscriptions for commitments to date of over $1.7B from LPs + Digital Realty will ma
Slide 7: Leading Data Center Partner for Sustainability
Leading Data Center Partner for Sustainability Building, Powering, and Operating Better, More Sustainable Data Centers Renewable Energy Green Buildings Resource Efficiency Green Bonds Leading data center purchaser of More green building certified IT capacity More energy star certifications than any
Slide 8: 1Q25 Financial Results
1Q25 Financial Results 1Q25 Financial Results 8
Slide 9: Demonstrating Continued Momentum
HISTORICAL TOTAL BOOKINGS Demonstrating ANNUALIZED GAAP BASE RENT $ in millions Continued Momentum $300 $800 $225 $600 • Record Pricing $244 / kW • 2nd Highest 0-1MW + IX $150 $400 Quarter Signings $75 $200 • Largest Single Lease Signing 2021 2022 2023 2024 YTD 2025 0-1MW (Left y-axis) Interconnecti
Slide 10: Record Backlog
Record Backlog BACKLOG ROLL-FORWARD (1) $ in millions COMMENCEMENT TIMING (3) $ in millions Enhanced Visibility of Future Growth $242M $119M $101M $919M $113M $919M $797M $85M $438M $110M • Record Backlog of $919M $283M • >40% Increase in 2026 $368M Backlog $696M $679M $679M $286M (2) 4Q24 Backlog S
Slide 11: Strong Pricing Environment
Strong Pricing Environment 1Q25 RENEWAL SPREADS Healthy Renewal 0-1 MW > 1 MW OTHER (1) TOTAL Spreads RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE 3.8% 4.6% 24.1% 5.6% • Renewals Heavily CASH CASH CASH CASH Weighted toward the 4.1% 11.2% 38.4% 7.1% 0-1 MW Category GAAP
Slide 12: Revenue Exposure by Currency
EXPOSURE BY REVENUE (1) Revenue Exposure 52% USD 22% EURO 6% GBP 5% SGD 4% ZAR 2% BRL 2% JPY 2% CHF 1% CAD <1% OTHER by Currency Currency Headwinds 1% 6% <1% <1% 2% 22% <1% 52% 2% <1% <1% • Local Operations Funded <1% 5% <1% in Local Currencies Act as 2% a Natural Hedge <1% <1% 4% CORE FFO/SHARE EXP
Slide 13: Strong Balance Sheet
Strong Balance Sheet Robust Liquidity with Limited Maturities and Multiple Capital Sources Net Debt to Adjusted EBITDA(1) >$5 Billion of liquidity at the end of 1Q 2.0x Total Reduction in Leverage in 2 Years 7.1X 5.1x Leverage at the end of 1Q 5.1X ~$700 Million Debt Maturities Remaining in 2025 1Q2
Slide 14: Matching the Duration of Assets and Liabilities
Matching the Duration of Assets and Liabilities Modest Near-Term Maturities, Well-Laddered Debt Schedule DEBT MATURITY SCHEDULE AS OF March 31, 2025 (1)(2) DEBT PROFILE (U.S. $ in billions) 4.5 YEARS 2.6% Weighted Avg. Weighted Avg. Unsecured Maturity (1)(2) Coupon (1) 96% Unsecured Secured $3.1 $3.
Slide 15: 2025 Financial Guidance Update
2025 Financial Guidance Update Improving Core Growth As of February 13, 2025 As of April 24, 2025 Better/Worse Total Revenue $5,800 – $5,900 $5,825 - $5,925 (1) Adjusted EBITDA $3,100 – $3,200 $3,125 - $3,225 Rental Rates on Renewals Leases (Cash) 4.0% – 6.0% 4.0% - 6.0% Year-End Portfolio Occupancy
Slide 16: Consistent Execution on Strategic Vision
Consistent Execution on Strategic Vision Delivering Current Results, Seeding Future Growth Strengthening Innovating Diversifying Customer and and Bolstering Value Integrating Capital Proposition Sources Successful 1Q25 Initiatives • $242M in Bookings • Entered Indonesia via Joint Venture • Launched
Slide 17: Appendix
Appendix 1Q25 Financial Results 17
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
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, 2025 March 31, 2024
Slide 21: Reconciliation of Non-GAAP Items
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 Twelve Months Ended December
Slide 22: Reconciliation of Non-GAAP Items
Reconciliation of 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) Non-GAAP Items (unaudited) Three Months Ended To Their Closest GAAP March 31, 2025 March 31, 2024
Slide 23: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items To Their Closest GAAP Digital Realty Trust, Inc. and Subsidiaries Equivalent 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 24: Reconciliation of Non-GAAP Items
Reconciliation of Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Same Capital Cash Net Operating Income (in thousands) Non-GAAP Items (unaudited) Three Months Ended To Their Closest GAAP March 31, 2025 March 31, 2024 Equivalent Rental revenues $ 719,355 $ 689,987 Tenant reimbursements
Slide 25: Reconciliation of Non-GAAP Items
Total Debt/Total Enterprise Value QE 03/31/23 Debt Service Ratio (LQA Adjusted EBITDA/GAAP interest expense plus capitalized interest and less bridge Reconciliation of Market value of common equity(i) $ 29,272,861 facility fees) Liquidation value of preferred equity(ii) 755,000 Total GAAP interest e
Slide 26: Reconciliation of Non-GAAP Items
Reconciliation of Total Debt/Total Enterprise Value QE 03/31/25 Debt Service Ratio (LQA Adjusted EBITDA/GAAP interest expense plus capitalized interest and less bridge facility Non-GAAP Items Market value of common equity(i) $ 49,161,653 fees) Liquidation value of preferred equity(ii) 755,000 Total
Slide 27: Thank you
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