Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q4 2022 Earnings Presentation
24 slides from Digital Realty Trust's earnings presentation, Feb 16, 2023
Slide 1: Global. Connected. Sustainable. 4Q22 Financial Results
Global. Connected. Sustainable. 4Q22 FINANCIAL RESULTS February 2023 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 4,000+ 200,000+ 50+ 300+ 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: Our Strategic Vision
Our Strategic Vision THE MEETING PLACE ENTERPRISES SERVICE PROVIDERS We integrate their We are a part of platforms their platform To bring companies and data together, in bold new ways, to power the innovation determining our future. 4Q22 Financial Results 3
Slide 4: Another Record Year of Bookings
Connected Data Communities Another Record Year of Bookings @ INTEGRATED 106 SOLUTION Avnet Virtual Labs being deployed in three top North new logos American markets to optimize video streaming workloads Production installations available anywhere across $47 million PlatformDIGITAL®’s 54 Global M
Slide 5: Northern Virginia Update
Northern Virginia Update 580+ (1) DLR’s in-place IT capacity in the world’s largest data center market (2) MWs 94% in Northern Virginia rose by 170 basis points in the quarter Occupancy 78 DLR’s active development pipeline to be delivered under committed leases MWs AWS DLR adds on-ramp to Ashburn Ca
Slide 6: Sustainability Focus and Performance
Sustainability Focus and Performance Delivering Sustainable Growth for All Stakeholders Environmental Social Governance Appointed Mary Hogan Preusse as Leader in the Light Newsweek’s America’s Most Responsible Companies of 2023 Chairman of the Board, which aligns with Digital Realty’s NAREIT Leader
Slide 7: 4Q22 Financial Results
4Q22 Financial Results 4Q22 Financial Results 7
Slide 8: Digital Transformation Driving Steady Demand
Digital HISTORICAL BOOKINGS ANNUALIZED GAAP BASE RENT Transformation $ in millions Driving Steady $150 Demand Global Full-Product Spectrum Provides $100 Broadest Solutions $50 • 4Q Leasing Caps Record Year $0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 • Record Interconnection Bookings in
Slide 9: Record Backlog
Record Backlog BACKLOG ROLL-FORWARD (1) COMMENCEMENT TIMING (2) New Signings $ in millions $103M $102M $ in millions Outpace $87M $76M Commencements $466M $10M $477M $64M $477M $132M $44M • Record Backlog of $125M $477 Million $281M $424M $421M $421M • Signed >$500 Million of New Leases in 2022 $252
Slide 10: Improving Pricing Environment
Improving Pricing 4Q22 RE-LEASING SPREADS Environment 2022 Renewal Spreads 0-1 MW > 1 MW OTHER (1) TOTAL Finish Up ~2% RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE 4.1% (3.6)% 2.4% 0.8% CASH CASH CASH CASH • Driven by Continued 4.4% (3.5)% 8.0% 1.1% Strength Within GAA
Slide 11: Data Center Revenue Growth Recovers in 2022
Data Center Y/Y Growth Rate, as Reported Y/Y Growth Rate, Constant Currency Revenue Growth Fourth Quarter Full Year 2022 Recovers in 2022 16.1% Improving Revenue Growth 10.6% Sets the Stage for 2023 11.0% 6.0% • CC Same Capital 5.8% 4.0% Revenue Growth Accelerates in 4Q 2.1% 2.5% • Double Digit CC 0
Slide 12: Revenue Exposure by Currency
EXPOSURE BY REVENUE (1) 56% 20% 7% 6% 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% 7% < 1% < 1% Currency Headwinds 20% 1% < 1% Abating 56% <1% 2% <1% <1% < 1% 6% • Local Operations Funded
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 DECEMBER 31, 2022 (1)(2) (U.S. $ in billions) Unsecured 97% Secured Unsecured $3.3 5.2 YEARS 2.7 % Weighted Avg. Weighted Avg. Maturity (1)(2) Coupon (1)
Slide 14: 2023 Financial Guidance
2023 Financial Guidance Improving Core Growth Actual 2022 Full Year 2023 Better/Worse Total Revenue $4,692 $5,700 - $5,800 Adjusted EBITDA $2,473 $2,675 - $2,725 Rental Renewal Rates Cash Basis 1.8% Greater than 3.0% Year-End Portfolio Occupancy 84.7% 85.0% - 86.0% Same-Capital Cash NOI Growth -5.8%
Slide 15: Q&A
Q&A Global. Connected. Sustainable. 4Q22 Financial Results 15
Slide 16: Executing on Strategic Vision
Executing on Strategic Vision Refining Strategy to Fuel Future Growth Strategic Priorities 1. Strengthening Customer Value Proposition Executing Meeting Place strategy with sustainable connectivity rich solutions 2. Integrating and Innovating Capabilities Building new applications on the world’s lar
Slide 17: Appendix
Appendix 4Q22 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 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 Twelve Months Ended To Their Closest GAAP December 3
Slide 21: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Funds From Operations (FFO) to Core Funds From Operations (CFFO) To Their Closest GAAP (in thousands, except per share and unit data) (unaudited) Equivalent Three Months Ended December 31, 2022 December 31
Slide 22: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items 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) To Their Closest GAAP (unaudited) Equivalent Three
Slide 23: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Same Capital Cash Net Operating Income (in thousands) (unaudited) To Their Closest GAAP Three Months Ended December 31, 2022 December 31, 2021 Twelve Months Ended December 31, 2022 December 31, 2021 Equiva
Slide 24: Thank you
r Thank you FN DIGITAL Lv REALTY.