Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q3 2019 Earnings Presentation
18 slides from Digital Realty Trust's earnings presentation, Oct 29, 2019
Slide 1: 3Q19 Financial Results
Global. Connected. Sustainable. 3Q19 FINANCIAL RESULTS October 2019 Digital Realty the trusted foundation | powering your digital ambitions
Slide 2: Lumpy But Healthy: Comprehensive Solutions Support Diverse Customer Base
Lumpy But Healthy Comprehensive Solutions Support Diverse Customer Base HISTORICAL BOOKINGS ANNUALIZED GAAP BASE RENT(1)(2) $ in millions Space & Power Interconnection #1 $100 # 2 #3 $75 $50 $25 $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 3Q19 BOOKINGS BY PRODUCT(1)(2) $52.7 mm $0.1 mm
Slide 3: Applications Attracting New Logos
Social Media Communities of Interest Applications Attracting New Logos 64 New Logos All-Time High Biotechnology $8mm Interconnection Signings Big Data & Analytics Global Base EMEA and APAC-based Customers Joining our Global Platform DIGITAL REALTY | 3Q19 FINANCIAL RESULTS | OCTOBER 29, 2019 | 3
Slide 4: Top-Line Step Function: Healthy Backlog Sets a Solid Foundation
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 $9 $15 $52 $72 $36 $8 $28 $11 $28 $13 $91
Slide 5: Holistic Approach to Customer Relationship Management
Holistic Approach to Customer Relationship Management Leveraging Multiple Touch Points to Maximize Relationship Value 3Q19 RE-LEASING SPREADS TURN-KEY FLEX® POWERED BASE BUILDING® COLOCATION TOTAL (1) RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE 11.1% 3.0% 1.9% 7.2% CA
Slide 6: Constant-Currency Growth
Constant-Currency Growth FX Represents ~ 75 bps Drag on Reported Results As Reported Constant-Currency 5.7% 4.9% 4.6% 3.5% 3.3% 2.4% (3.0%) (3.7%) 3Q18 / 3Q19 3Q18 / 3Q19 Adjusted 3Q18 / 3Q19 Stabilized 3Q18 / 3Q19 Core Revenue Growth EBITDA Growth (1) Cash NOI Growth (1) FFO per Share Growth (1) No
Slide 7: Putting Exposure in Perspective
Putting Exposure in Perspective Benefits of Scale and Diversification on Display EXPOSURE BY REVENUE 2019 CORE FFO/SHARE EXPOSURE USD CAD GBP EURO JPY HKD SGD AUD 1% 8% 0.1% 4% 80% 0% Midpoint of 0.1% 0.0% Guidance $6.55 – $6.65(1) GBP EUR 0% +/- 10% +/- 10% BENCHMARK 4% RATES 1% +/- 100 bps EXCHANG
Slide 8: Four Quarter Two-Step: Beat, Dip, Shuffle, Bounce
Four Quarter Two-Step Beat, Dip, Shuffle, Bounce 2019E CORE FFO PER SHARE Joint Venture Portfolio Sale 1Q19 2Q19 3Q19 NOI Growth 4Q19 Mapletree 4Q19 Financings Transactions Note: Based on management estimates; actual performance may differ materially. Core FFO and NOI are non-GAAP financial measures
Slide 9: Prudently Financed Transaction Enhances Credit Profile
Prudently Financed Transaction Enhances Credit Profile Reflecting a Full-Quarter Contribution (1) (2) Net Debt to Adjusted EBITDA Fixed Charge Coverage Ratio 6.1x 1.1x 5.0x 4.3x 0.1x 4.4x 18% 4% Floating Rate Floating Rate Debt Debt(3) 3Q19 Pro Forma for Forward 3Q19 3Q19 Pro Forma for Forward 3Q19
Slide 10: 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 SEPTEMBER 30, 2019(1)(2) DEBT PROFILE (U.S. $ in billions) 99% Unsecured Unsecured Secured 6.1 YEARS 3.2% Weighted Avg. $3.3 Weighted Avg. Maturity(1)(2) Coupon(1) 82%
Slide 11: Appendix
Appendix DIGITAL REALTY | 3Q19 FINANCIAL RESULTS | OCTOBER 29, 2019 | 11
Slide 12: 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 Space & Power Interconnection $80 $60 $40 $20 $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 3Q19 TRA
Slide 13: 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 14: Management Statements on Non-GAAP Measures: EBITDA and Adjusted EBITDA
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, or EBITDA, and Adjusted EBITDA (as defined below), are useful supplemental performance measur
Slide 15: Management Statements on Non-GAAP Measures
Appendix Management Statements on Non-GAAP Measures 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 includ
Slide 16: 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 Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Net Income Available to Common Stockholders to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjus
Slide 17: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Total Debt/Total Enterprise Value Market value of common equity(i) $ 28,263,171 Net Debt/LQA Adjusted EBITDA Liquidation value of preferred equity(ii) 1,111,250 QE 09/30/19 Total debt at balance sheet carrying value 10,924,035 Total d
Slide 18: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent QE 09/30/19 Fixed Charged Ratio (LQA Adjusted EBITDA/total fixed charges) GAAP interest expense plus capitalized interest 94,510 Scheduled debt principal payments 163 Preferred dividends 16,670 Total fixed charges 111,343 Fixed charge