Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q3 2020 Earnings Presentation
24 slides from Digital Realty Trust's earnings presentation, Oct 29, 2020
Slide 1: 3Q20 Financial Results
Digital Realty the trusted foundation | powering your digital ambitions Global. Connected. Sustainable. 3Q20 FINANCIAL RESULTS OCTOBER 2020
Slide 2: Navigating the Future: Sustainable Growth for Customers, Shareholders and Employees
DIGITAL REALTY | 3Q20 FINANCIAL RESULTS | OCTOBER 29, 2020 | 2 Navigating the Future Sustainable Growth for Customers, Shareholders and Employees GLOBAL CONNECTED SUSTAINABLE Selling GLOBALLY… Supporting LOCALLY EMEA APAC AMERICAS A Digital Realty and Brookfield Infrastructure JV
Slide 3: Prioritizing Health and Safety Amid Global Pandemic
DIGITAL REALTY | 3Q20 FINANCIAL RESULTS | OCTOBER 29, 2020 | 3 Prioritizing Health and Safety Amid Global Pandemic Maintaining Resiliency Employees and Vendors • Minimized on-site data center staffing and increased safety protocols • Coordinated with suppliers to verify response plans and service co
Slide 4: Serving a Social Purpose
| 4 Serving a Social Purpose Delivering Sustainable Growth for All Stakeholders Achieved 2020 Green Lease Leader Recognition Published Second Annual ESG Report in June 2020 Dallas Portfolio Powered by 70% Renewable Energy ENVIRONMENTAL Committed to enhancing the well- being of our stockholders, cust
Slide 5: European Platform Expanding Global Platform Supporting Customer Growth
DIGITAL REALTY | 3Q20 FINANCIAL RESULTS | OCTOBER 29, 2020 | 5 European Platform Expanding Global Platform Supporting Customer Growth Manchester Zagreb 1) Includes Zagreb Zagreb 700+ Connectivity Providers 55,000 Cross-Connects 16 Metro Areas (1) Zurich Madrid Marseille Vienna Frankfurt Marseille a
Slide 6: Combining Leading Platforms in EMEA
DIGITAL REALTY | 3Q20 FINANCIAL RESULTS | OCTOBER 29, 2020 | 6 Two-way traffic, with recent referral wins on both sides of the pond Capitalizing on investment grade balance sheet to lower borrowing costs, fund profitable growth investments, create value and control destiny by securing ownership posi
Slide 7: Data Gravity Key Mega Trend
DIGITAL REALTY | 3Q20 FINANCIAL RESULTS | OCTOBER 29, 2020 | 7 Data Gravity Key Mega Trend Global Industry Challenge New York Data Gravity Score 79.6 London Data Gravity Score 167.1 Tokyo Data Gravity Score 80.3 Identified the Issue Cracked the Code Projected the Growth CREATE PROCESS AGGREGATE ANAL
Slide 8: Financial Results
Financial Results DIGITAL REALTY | 3Q20 FINANCIAL RESULTS | OCTOBER 29, 2020 | 8
Slide 9: Powerful Global Platform Expanding Customer Base and Reach
DIGITAL REALTY | 3Q20 FINANCIAL RESULTS | OCTOBER 29, 2020 | 9 4,000+ Customers 162,000 Cross-Connects 48 Metros 284 Data Centers 86% Total Occupancy $2 Bn of Development 190 MW of Construction 56% Pre-Leased Global Presence Growth Customers and Communities 30% of Revenue from EMEA Powerful Global P
Slide 10: Digital Transformation Driving Steady Demand
Digital Transformation Driving Steady Demand Global Full-Product Spectrum Provides Broadest Solutions Note: Darker shading represents interconnection bookings. Third-quarter bookings are highlighted in lighter blue. Totals may not add up due to rounding. 1) Other includes Powered Base Building shell
Slide 11: Communities of Interest Attracting New Logos
DIGITAL REALTY | 3Q20 FINANCIAL RESULTS | OCTOBER 29, 2020 48% of total bookings from colocation + interconnection 59% of total bookings outside North America Communities of Interest Attracting New Logos | 11 130 record new logos Global Grocery Retailer Risk Management IT Data Analytics Biotech Rese
Slide 12: Top-Line Step Function Healthy Backlog Sets a Solid Foundation
Top-Line Step Function Healthy Backlog Sets a Solid Foundation DIGITAL REALTY | 3Q20 FINANCIAL RESULTS | OCTOBER 29, 2020 | 12 Note: Totals may not add up due to rounding. 1) Amounts shown represent GAAP annualized base rent from leases signed. 2) Amounts shown represent GAAP annualized base rent fr
Slide 13: Cycling Through Peak Vintage Renewals
Cycling Through Peak Vintage Renewals Narrowing the Gap on Cash Re-Leasing Spreads DIGITAL REALTY | 3Q20 FINANCIAL RESULTS | OCTOBER 29, 2020 | 13 0-1 MW > 1 MW OTHER (1) TOTAL Signed renewal leases representing $138 million of annualized GAAP rental revenue Signed renewal leases representing $21 mi
Slide 14: Effective Economic Risk Mitigation Strategies
Effective Economic Risk Mitigation Strategies Benefits of Scale and Diversification on Display Source: Bloomberg. Note: Totals may not add up due to rounding. 1) As of September 30, 2020. Includes DLR’s share of revenue from unconsolidated joint ventures. 2) Calculation based on annualized base rent
Slide 15: Four Quarter Two-Step
Four Quarter Two-Step Beat, Dip, Shuffle, Bounce Note: Based on management estimates; actual performance may differ materially. Core FFO and NOI are non-GAAP financial measures. For descriptions and reconciliations to the closest GAAP equivalents, see the Appendix. 2020E CORE FFO PER SHARE 1Q20 2Q20
Slide 16: Matching the Duration of Assets and Liabilities
$0.0 $0.0 $0.7 $0.9 $1.7 $1.7 $1.3 $1.1 $1.3 $1.4 $1.6 $0.6 $0.9 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Pro Rata Share of JV Debt Secured Mortgage Debt Unsecured Senior Notes Unsecured Credit Facilities Pro Forma Payoffs Unsecured Term Loan Unsecured Green Bonds £ £ £ € € £
Slide 17: Consistent Execution on Strategic Vision
Consistent Execution on Strategic Vision Delivering Current Results, Seeding Future Growth DIGITAL REALTY | 3Q20 FINANCIAL RESULTS | OCTOBER 29, 2020 | 17 SUCCESSFUL 3Q20 INITIATIVES 1.Strengthening Connections with Customers Reached high-watermark for new logos 2.Exceeding Expectations Beat quarter
Slide 18: Appendix
Appendix DIGITAL REALTY | 3Q20 FINANCIAL RESULTS | OCTOBER 29, 2020 | 18
Slide 19: Robust Long-Term Demand, Lumpy Near-Term Signings
Robust Long-Term Demand, Lumpy Near-Term Signings Diverse Customer Base HISTORICAL BOOKINGS TRAILING FOUR-QUARTER AVERAGE ANNUALIZED GAAP BASE RENT $ in millions 3Q20 TRAILING FOUR-QUARTER AVERAGE BOOKINGS 0-1 MW $20.8 mm > 1 MW $58.1 mm OTHER (1) $5.1 mm INTERCONNECTION $10.2mm TOTAL BOOKINGS $94.1
Slide 20: Firm Fundamentals Robust Demand, Rational Supply
Firm Fundamentals Robust Demand, Rational Supply 1) Management estimates, based on a sub-set of Digital Realty metros (North America: Northern Virginia, Chicago, Dallas, Silicon Valley, New Jersey, Phoenix and Toronto; EMEA: Amsterdam, Dublin, Frankfurt, and London; APAC: Melbourne, Osaka, Singapore
Slide 21: Management Statements on Non-GAAP Measures
Appendix Management Statements on Non-GAAP Measures DIGITAL REALTY | 3Q20 FINANCIAL RESULTS | OCTOBER 29, 2020 | 21 The information included in this presentation contains certain non-GAAP financial measures that management believes are helpful in understanding our business, as further described belo
Slide 22: Forward-Looking Statements
Appendix Forward-Looking Statements DIGITAL REALTY | 3Q20 FINANCIAL RESULTS | OCTOBER 29, 2020 | 22 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 inv
Slide 23: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent DIGITAL REALTY | 3Q20 FINANCIAL RESULTS | OCTOBER 29, 2020 | 23 September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Net income available to common stockholders (37,368) $ 49,827 $ 219,167 $ 177,434 $ Adjustment
Slide 24: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent DIGITAL REALTY | 3Q20 FINANCIAL RESULTS | OCTOBER 29, 2020 | 24 Note: For quarter ended September 30, 2020 QE 9/30/20 Total GAAP interest expense (including unconsolidated JV interest expense) 96,088 Add: Capitalized interest 12,379 G