Slide 1: Digital Realty October 2016
G DIGITAL REALTY DIGI ITAL REALTY OCTOBER 2016 a 3 a wo a 2 >
Slide 2: Our Focus
Our Focus Our philosophy is to deliver superior returns by capitalizing on our core competencies and tailoring them to meet our customers’ yrowing and evolving data center needs SUPERIOR RETURNS Deliver superior risk-adjusted total returns CAPITAL ALLOCATION Prudently allocate capital to opportunist
Slide 3: Expanding the Global Footprint
Expanding the Global Footprint AMSTERDAM LONDON Significant Presence in Top Three European Data Center Markets Total MW 48 otal SF.64 100 (Occupancy 757% of the most Premium assets with strong ta connection growth and lease-up potential in ne sisteaely important locatior 3016 EARNINGS CALL & PRESENT
Slide 4: Diversifying Product Offerings
Diversifying Product Offerings 900 f 000 000 Additional GB vay Planned Markets
Slide 5: Data Center Supply in Perspective
Data Center Supply in Perspective e Fundamentals Glass is Still Half-Full Tt Demand Outpacing Supply in Top-Tier Data Center Markets National Metro Areas Construction concen inmen a robust leasing id high visibility of demand Market DLR /Matket DLR 96% 96% oie x Healthy Occupancy (tes Tight market v
Slide 6: Securing Our Supply Chain
Securing Our Supply Chain Future-Proofing Our Customers’ Expansion Needs
Slide 7: Macroeconomic and market forecast changes since 2Q16 call
2Q16 Call CURRENT Better/ WorseJuly 28, 2016 October 25, 2016 2017E 2018E Global GDP Growth Forecast (1) 2017E: 3.2% 2017E: 3.2% tu 3.2% 3.3% U.S. GDP Growth Forecast (1) 2017E: 2.2% 2017E: 2.1% q 2.1% 2.1% U.S. Unemployment Rate (2) 4.9% 5.0% p 4.7% 4.6% Inflation Rate – U.S. Annual CPI Index (2) 1
Slide 8: ” aoe ane
v ab -s ” aoe ane poooonue ’ oe ” ee ’ , % @¢@ aon, iB DIGITAL REALTY
Slide 9: Diverse Customer Base + Product Offerings
Diverse Customer Base + Product Offerings uerereal CASSeisiGRInGS Total sf walzed GAAP Annualized GAAP gning Product Type Signed ® aa Base Rent ® Annualized GAAP Base Rent ‘$a $0 0 1Q 2Q 3Q 4Q 1Q 20 3Q 4Q 10 20 30 4Q 1 20 3Q 4Q 10 20 30 4Q 10 20 30 4Q 10 20 30 4Q 10 20 30 2009 re worceoan @ 3016 EAR
Slide 10: Front-End-Loaded Commencement Schedule
Front-End-Loaded Commencement Schedule Backlog Roll-Forward + Commencement Timing Hi current Period Backlog [lifSignings [ll Commencements [ii Total Backlog Sin millions $125 $100 $75 2016 Backlog Signings Commencements 3016 Backlog 2016 207 2018+ Total Backlog
Slide 11: Mark-to-Market Mostly Positive
Mark-to-Market Mostly Positive Re-Leasing Spreads Renewed 66,855 square feet of Turn-Key Flex® data centers at a rental rate decrease of 9% ona cash basis and decrease of 7% on a GAAP basis Turn-Key P d Renewed 46,296 square feet of Powered Base owere Building? data centers at a rental rate increase
Slide 12: Setting the Stage for Embedded Growth Upside Potential
Setting the Stage for Embedded Growth Upside Potential N% ral a wos 89% 88% 2016 Positiv Asset Sales Acquisitions Development Terminations 30 Occupancy Absorption _/ Held for Sale laced /Expirations Occupancy in Service
Slide 13: Inventory Utilization a More Meaningful Measure
Inventory Utilization a More Meaningful Measure return on in Capital 8 © (Pre-Stabilized Inventory / Total IT Load), 3014 4Q14 1 2015 4015 1016 2016 ments in Real Estate includ ck for impairment Is. f applicable. Cash NO! OB 3016 EARNINGS CALL & PRESENTATION | OCTOBER .27. 2016 3
Slide 14: M&A Scorecard
M&A Scorecard 3016 CTUAL asi $939 million $392 million eits $917 million $384 million Sensation. Excludes synergies. Fora definition of Core EBITDA and a reconciliation to net income Co LL & PRI ENTATION| OCTOBER. 27. 2016 4
Slide 15: FX Represents ~100-200 bps Drag on Reported Results
FX Represents ~ 100-200 bps Drag on Reported Results As Reported @ Constant-Currency |! Total Including Telx 30% 275%! 25% fa —yh —o 253%)! | 2u8%! i ! sores : roof 4 Tae 1 re 1 l u 1 w—woitn a ie! i a id . ; 10% | 1 1 1 ny 1 11% 1 u 1 % 0.3% A 1 1 1 9h% 1 / : ! : i 3016 / 3015 3016 / 3015 3016 / 30
Slide 16: Steady, Improving and High-Quality Growth
Steady, Improving and High-Quality Growth igh Quality of Earnings, Accelerating Growth Profile FINANCIAL OUTLOOK © Double-Digit Growth Target accelerating growth in out-years Mia Single-Digit Growth Cash flow contribution from Telx and straight-line rent burn-off drive double digit AFFO growth in 16
Slide 17: One-Way Draw-Down
One-Way Draw-Down Gin billions) a i} Forward Equity Offering $11Bn European Portfolio Acquisition $0.9 Bn M | Underwriters! ption $0.2 Bn gags Maturities $0.2 Bn i Mw Four-Property Portfolio Sale $0.1Bn Preferred Equity Redemption $0.3 Bn MM Vv Paris Property Sale $0.2Bn —_ Additional Investment Act
Slide 18: Benefits of Diversification and Scale on Display
Benefits of Diversification and Scale on Display DEBT MATURITY SCHEDULE Gil in npllions? Je Debt adel Sha acy $20 11% GBP «/-10% $00 Dow 2017 2018 200 2020 20 2022 2023 2026 2025 CURRENT CAPITAL STRUCTURE ©
Slide 19: Delivering Current Results, Seeding Future Growth
Delivering Current Results, Seeding Future Growth Successful 3Q16 Initiatives EXTENDING GLOBAL FOOTPRINT ENHANCING PRODUCT OFFERINGS DELIVERING DOUBLE-DIGIT AFFO GROWTH STRENGTHENING THE BALANCE SHEET
Slide 20: Appendix
Slide 21: Diverse Customer Base + Product Offerings
Diverse Customer Base + Product Offerings Historical Lease Signings Total Annué GAAP on Product Ty Si d 1 B Re 2) Trailing Four-Quarter Average segue ee ened ase Rent see @) ni >d GAAP Base Rent (2) Turn-Key Fl Annualized GAAP Base Rent rae 5 owered Base Building Colocation Non-Technical Interconnec
Slide 22: U.S. Major Metro Area Data Center Supply
U.S. Major Metro Area Data Center Supply Supply Largely Concentrated in Most Active Met 3Q16 ™ Current Supply ® “New Construction — ® Digital Realty Inventory 2 100 80 1 60 | 40 | 20 oO Boston Chicago Dallas Houston NVirgina =—sNNY Metro Phoenix Silicon Valley 2Q16 se |Current Supply ©? “New Constru
Slide 23: Non-GAAP financial measures definitions
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 may differ from those of other REITs, and, therefor
Slide 24: EBITDA and Adjusted EBITDA definitions
EBITDA and Adjusted EBITDA: We believe that earnings before interest, loss from early extinguishment of debt, income taxes and depreciation and amortization, or EBITDA, and Adjusted EBITDA (as defined below), are useful supplemental performance measures because they allow investors to view our perfo
Slide 25: 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 relating to: our economic outlook; oppo
Slide 26: Reconciliation of Telx Core EBITDA
Reconciliation of Telx Core EBITDA (unaudited) (in thousands) Three Months Ended September 30, 2016 Net Loss ($3,111) Income Tax Expense (Benefit) 279 Interest Expense, net 553 Depreciation & Amortization 34,230 EBITDA $31,951 Plus: Non-Cash Rent 8,149 Plus: Non-Cash Compensation 323 Plus: Transacti
Slide 27: FFO reconciliation
Year Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 December 31, 2015 Net income (loss) available to common stockholders 187,330$ 38,522$ 254,406$ 257,305$ 217,265$ Adjustments: Noncontrolling interests in operating partnership 3,024 747 4,144 5,150 4,442 Real esta
Slide 28: Core FFO reconciliation
Year Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 December 31, 2015 FFO available to common stockholders and unitholders -- diluted 199,496$ 177,849$ 612,285$ 570,358$ 687,895$ Termination fees and other non-core revenues (3) (2) (580) (93) 680 680 Significant tr
Slide 29: EBITDA and Adjusted EBITDA reconciliation
September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Net income (loss) available to common stockholders 187,330$ 38,522$ 254,406$ 257,305$ Interest 63,084 48,138 180,254 139,718 Loss from early extinguishment of debt 18 - 982 148 Taxes 3,720 1,850 8,081 6,087 Depreciation and
Slide 30: Net Operating Income and Cash NOI reconciliation
September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Rental revenues 203,155$ 205,215$ 616,392$ 614,622$ Tenant reimbursements - Utilities 40,590 40,710 108,800 112,110 Tenant reimbursements - Other 18,743 15,351 53,764 46,973 Interconnection and other 1,661 1,321 4,645 3,741
Slide 31: AFFO reconciliation
Nine Months Ended Year Ended September 30, 2016 December 31, 2015 Core FFO available to common stockholders and unitholders 643,627$ 746,157$ Non-real estate depreciation 7,334 6,798 Amortization of deferred financing costs 7,454 8,481 Amortization of debt discount/premium 2,029 2,296 Non-cash stock