Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q1 2016 Earnings Presentation
22 slides from Digital Realty Trust's earnings presentation, Apr 28, 2016
Slide 1: April 28, 2016
es April 28, 2016
Slide 2: Our Focus: The Next Horizon
1 SUPERIOR RETURNS Deliver superior risk-adjusted total shareholder returns 2 CAPITAL ALLOCATION Prudently allocate capital to opportunistically extend global campus footprint 3 PRODUCT OFFERINGS Drive higher returns on the asset base by diversifying product offerings 4 OPERATING EFFICIENCIES Achiev
Slide 3: Supply Steady in Major U.S. Markets
- 20 40 60 Boston Chicago Dallas Houston N Virginia NY Metro Phoenix Silicon Valley Current Supply New Construction Digital Realty Inventory - 20 40 60 Boston Chicago Dallas Houston N Virginia NY Metro Phoenix Silicon Valley Current Supply New Construction Digital Realty InventoryCu Supp (1) U.S. Ma
Slide 4: Data Center Supply in Perspective
Data Center Supply in Perspective The Fundamentals Glass is Half-Full Source: Digital Realty internal estimates and datacenterHawk. 1) Per datacenterHawk. Excludes owner-occupied data centers. 2) Calculated as 2015 market absorption divided by current data center construction. 4 NORTHERN VIRGINIA DA
Slide 5: Macroeconomic and Market Assumptions
4Q15 CALL February 25, 2016 CURRENT April 25, 2016 BETTER / WORSE 2016E 2017E Global GDP Growth Forecast (1) 2016E: 3.4% 2016E: 3.2% q 3.2% 3.5% U.S. GDP Growth Forecast (1) 2016E: 2.6% 2016E: 2.4% q 2.4% 2.5% U.S. Unemployment Rate (2) 4.9% 5.0% p 4.8% 4.6% Inflation Rate – U.S. Annual CPI Index (2
Slide 6: Financial Results
Financial Results
Slide 7: Telx Scorecard
Telx Scorecard On Track to Meet or Exceed Key 2016 Financial Targets 7 OPERATING REVENUE 2016 UNDERWRITING TARGET CORE EBITDA (1) 1Q15 ACTUAL 1) Represents Telx EBITDA adjusted for non-cash rent expense, non-cash compensation and excludes synergies. For a definition of Core EBITDA and a reconciliati
Slide 8: Sustained Leasing Momentum
$0 $20 $40 $60 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Historical Lease Signings Annualized GAAP Base Rent (2) Sustained Leasing Momentum Hunting and Farming 1) Includes signings for new and re-leased space. 2) GAAP rental revenues include total rent fo
Slide 9: Healthy Backlog Sets a Solid Foundation
Healthy Backlog Sets a Solid Foundation Solid Pre-Leasing De-Risks New Market Entry Note: Amounts shown represent GAAP annualized base rent from signed but not yet commenced leases and are based on current estimates of future lease commencement timing. Actual results may vary from current estimates.
Slide 10: Cycling Through Peak Vintage Renewals
Note: Represents Turn-Key Flex® and Powered Base Building® leases signed during the quarter ended March 31, 2016. Rental rate changes on renewals are calculated as the cash rent from new leases divided by the cash rent from expiring leases, minus one. Cycling Through Peak Vintage Renewals Approachin
Slide 11: 1Q16 Results Ahead of Plan
$0.01 $0.01 $0.02 $0.03 $1.10 $1.20 $1.30 $1.40 $1.50 1Q16 Core FFO Consensus Digital Realty NOI Telx EBITDA Digital Realty G&A Lower Interest Expense 1Q16 Core FFO Actual (1) 1Q16 Results Ahead of Plan Operating Outperformance + Interest Savings Drive Upside Note: Core FFO is a non-GAAP financial m
Slide 12: Growth: As Reported and Constant-Currency
6.8% 7.9% 9.2% 10.5% 4.3% 5.0% 11.7% 12.7% 0% 5% 10% 15% 20% 25% 1Q16 / 1Q15 Revenue Growth 1Q16 / 1Q15 Adjusted EBITDA Growth 1Q16 / 1Q15 Same-Capital Cash NOI Growth 1Q16 / 1Q15 Core FFO / Sh Growth 2016E / 2015 Core FFO / Sh Growth 24.0% 25.4% 22.9% 24.3% 7.9% 6.5% 5 As Reported Constant-Currency
Slide 13: Debt Maturity Schedule as of March 31, 2016
$0.1 $1.0 $0.0 $0.1 $0.2 $0.0 $1.0 $2.4 $0.8 $0.0 $0.0 $1.0 $2.0 $3.0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Secured Mortgage Debt Unsecured Prudential Shelf Facility Pro Rata Share of JV Debt Unsecured Notes Unsecured Term Loan Unsecured Global Facility Unsecured Green Bonds $0.7 (1
Slide 14: Debt Maturity Schedule Pro Forma for Eurobond
$0.1 $1.0 $0.0 $0.1 $0.2 $0.0 $1.0 $1.8 $0.8 $0.7 $0.0 $1.0 $2.0 $3.0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Secured Mortgage Debt Unsecured Prudential Shelf Facility Pro Rata Share of JV Debt Unsecured Notes Unsecured Term Loan Unsecured Global Facility Unsecured Green Bonds $0.7 (1
Slide 15: Consistent Execution on Strategic Vision
Extending the Global Footprint Entered new target market with Frankfurt land acquisition, signed anchor tenant for first project in Japan Achieving Operating Efficiencies Reported 1Q16 core FFO / share of $1.42, seven cents ahead of consensus Raised Guidance Revised 2016 core FFO / share outlook
Slide 16: Appendix
Appendix
Slide 17: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures The information included in this presentation contains certain non-GAAP financial measures that management believes are helpful in understanding our business, as further described below. Our definition and calculation of non- GAAP financial measures may dif
Slide 18: Definitions of Non-GAAP Financial Measures (cont.)
Definitions of Non-GAAP Financial Measures (cont.) EBITDA AND ADJUSTED EBITDA: We believe that earnings before interest, loss from early extinguishment of debt, income taxes and depreciation and amortization, or EBITDA, and Adjusted EBITDA (as defined below), are useful supplemental performance meas
Slide 19: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent 19 Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Net Income Available to Common Stockholders to Funds From Operations (FFO) (in thousands, except per share and unit data) (unaudited) Three Months Ended March 31, 2016 N
Slide 20: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent 20 Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Net Income Available to Common Stockholders to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA (in thousands) (unaudited) Thr
Slide 21: Reconciliation of Core EBITDA
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent 21 Reconciliation of Core EBITDA (unaudited) (in thousands) Net loss (1,705)$ Income tax benefit (86) Interest expense, net 871 Depreciation & amortization 33,726 EBITDA 32,806$ Plus: Non-Cash Rent 7,762 Plus: Non-Cash Compensation 11
Slide 22: Forward-Looking Statements
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: