Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q1 2018 Earnings Presentation
20 slides from Digital Realty Trust's earnings presentation, Apr 26, 2018
Slide 1: 1Q18 Financial Results
Global. Connected. Sustainable. fi 1Q18 FINANCIAL RESULTS APRIL 2018 DIGITAL REALTY
Slide 2: Serving a Social Purpose
Serving a Social Purpose Delivering Sustainable Growth for All Stakeholders ENVIRONMENTAL 2017 NAREIT NAREIT P . Leader In The Light Leader in the Light Sensiable Rel Extate Award for Data Committed to enhancing the well- being of our stockholders, customers, employees, vendors, and communities 2015
Slide 3: Firm Fundamentals: Robust Demand, Rational Supply
Firm Fundamentals Robust Demand, Rational Supply NORTH AMERICA 1998 2,250 950 1,014 MEGAWATTS COMMISSIONED® MEGAWATTS COMMISSIONED® 665 MEGAWATTS COMMISSIONED® 90% DIGITAL REALTY 90% REGION OCCUPANCY RATE (1Q18” 85% DIGITAL REALTY 90% REGION OCCUPANCY RATE (1018)? 93% DIGITAL REALTY 93% REGION OCCUP
Slide 4: Delivering Superior Risk-Adjusted Returns
Delivering Superior Risk-Adjusted Returns Investing Opportunistically to Expand Global Platform RETURN VALUE- OPPOR- ADD TUNISTIC CORE 18%+ 12%-18% (oO e 6% — 9%, e : e Risk- Wid Free Rate 100% Pre-leasing AAA Credit Quality 20 yr. Lease Term 100% Funding Wvvy RISK First mover Full product offering
Slide 5: Macroeconomic and Interest Rate Outlook
4Q17 CALL CURRENT Better/ February 14, 2018 April 25, 2018 Worse 2018E 2019E (1) Global GDP Growth Forecast 2018E: 3.9% 2018E: 3.9% tu 3.9% 3.9% MACROECONOMIC U.S. GDP Growth Forecast (1) 2018E: 2.7% 2018E: 2.9% p 2.9% 2.7% U.S. Unemployment Rate (2) 4.1% 4.1% tu 3.9% 3.7% Inflation Rate – U.S. Annu
Slide 6: a DIGITAL REALTY
a DIGITAL REALTY
Slide 7: Lumpy but Healthy
Lumpy but Healthy Comprehensive Solutions Support Diverse Customer Base $ in millions $60 $40 | = I | §20 a F 3 | a9 #4 mae ae ae $o TURN-KEY POWERED BASE COLOCATION NON-TECHNICAL INTERCONNECTION TOTAL BOOKINGS FLEX® BUILDING® and expansions, The timing between lease signing and lease commencement (
Slide 8: Healthy Backlog Sets a Solid Foundation
Healthy Backlog Sets a Solid Foundation Front-End-Loaded Commencement Schedule $in millions $in millions Current Period Backlog Signings Il Commencements Total Backlog Current Period Backlog Total Backlog 4Q17 Backlog Signings | Commencements 1018 Backlog 2018 2019 2020+ Total Backlog
Slide 9: Cycling Through Peak Vintage Renewals
Cycling Through Peak Vintage Renewals Positive Mark-to-Market Across All Property Types RENTAL RATE CHANGE As, CASH 14.3% GAAP RENTAL RATE CHANGE 4.0», CASH 32.3% GAAP RENTAL RATE CHANGE 5.5% CASH 5.5% GAAP RENTAL RATE CHANGE 3.9% CASH 9.7% GAAP = Renewed 220,188 square feet of Turn-Key Flex® data c
Slide 10: USD CAD GBP
USD CAD GBP EURO JPY HKD SGD AUD 234 bps 141 bps
Slide 11: Consistent Execution, Sustainable Growth
Consistent Execution, Sustainable Growth High Quality of Earnings with Proven Growth Profile 35% 7% 359% 6% Growth Cincl. DFT) Growth (excl. DFT) Growth Cincl. DFT) Growth (excl. DFT) 1018 /1Q17 1Q18 / 1Q17 1018 /1Q17 1018 /1Q17 Sin millions Sin millions $731 $744 $610 ., | gag 9451 $551 $566 9 $352
Slide 12: Four Quarter Two-Step
Four Quarter Two-Step Beat, Dip, Shuffle, Bounce 1Q18A NO! Growth G&AlInvestments Asset Sales 2Q18E 3Q18E Lease 4Q18E Commencements Note: Based on management estimates; actual performance may differ materially. Core FFO and NOI are non-GAAP financial measures. For descriptions and reconciliations to
Slide 13: 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 (USD in billions) 5 YEARS 5.4% Weighted Average Weighted Debt Maturity Average Coupon $2.5 $1.3 $10 we ty $i $08 : |] $05 sor $02 $0.0 $0.0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 20
Slide 14: Consistent Execution on Strategic Vision
Consistent Execution on Strategic Vision Delivering Current Results, Seeding Future Growth Reached high-water mark for bookings and backlog Beat quarterly consensus estimates, raised full-year outlook Raised the dividend by 9%, the 13" consecutive annual increase Gave shareholders the right to propo
Slide 15: Appendix
Slide 16: Robust Long-Term Demand, Lumpy Near-Term Signings
Robust Long-Term Demand, Lumpy Near-Term Signings Diverse Customer Base + Product Offerings $ in millions $60 $40 — solange $20 $o TURN-KEY POWERED BASE COLOCATION NON-TECHNICAL INTERCONNECTION TOTAL BOOKINGS FLEX® BUILDING® ions, The timing between lease signing and lease commencement (and receipt
Slide 17: Appendix: 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 18: Appendix: Management Statements on Non-GAAP Measures
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, and impairment of investments in real estate, or EBITDA, and Adjusted EBITDA (as defined belo
Slide 19: Appendix: Forward-Looking Statements
Appendix 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 re
Slide 20: FFO and Adjusted EBITDA Reconciliation
Funds from operations Reconciliation of Adjusted EBITDA Q118 Q117 FY 2017 Q118 Q117 Net income (loss) available to common stockholders $ 86,298 $ 66,145 $ 173,149 EBITDA $ 461,446 $ 300,284 Noncontrolling interests in operating partnership 3,480 904 3,770 Severance accrual and equity acceleration (i