Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q4 2020 Earnings Presentation
25 slides from Digital Realty Trust's earnings presentation, Feb 12, 2021
Slide 1: Global. Connected. Sustainable. 4Q20 Financial Results
Global. Connected. Sustainable. 4Q20 FINANCIAL RESULTS FEBRUARY 2021 Digital Realty the trusted foundation | powering your digital ambitions
Slide 2: Navigating the Future
Navigating the Future Sustainable Growth for Customers, Shareholders and Employees GLOBAL CONNECTED SUSTAINABLE Selling GLOBALLY… Supporting LOCALLY AMERICAS EMEA APAC A Digital Realty and Brookfield Infrastructure JV DIGITAL REALTY | 4Q20 FINANCIAL RESULTS | FEBRUARY 11, 2021 | 2
Slide 3: Serving a Social Purpose
Serving a Social Purpose Delivering Sustainable Growth for All Stakeholders ENVIRONMENTAL SOCIAL GOVERNANCE Demonstrated senior leadership and Earned 2020 Nareit employee commitment to Diversity, Enhanced Board diversity Leader in the Light award for fourth Equity & Inclusion; signed CEO Action Pled
Slide 4: Expanding Global Platform Supporting Customer Growth
Athens Expanding Global Platform Supporting Customer Growth Stockholm Copenhagen Dublin Manchester Amsterdam London Dusseldorf Brussels Frankfurt Paris Zurich Vienna Copenhagen Vienna Zurich Geneva Zagreb Marseille Madrid Athens European Platform 88,000+ 700+ 17 Cross-Connects Connectivity Providers
Slide 5: Combining Leading Platforms in EMEA
Combining Leading Platforms in EMEA Further Solidifying Global Connection with Customers Amsterdam Dublin Marseille Paris Customers Communities of Interest Growth EMEA London Data Gravity Score (1) 167.1 Two-way traffic, with numerous referral Capitalizing on investment grade balance sheet wins on b
Slide 6: Data Gravity Driving Data Center Demand
Data Gravity Driving Data Center Demand PlatformDIGITAL® Poised to Capitalize Tokyo Data Gravity Score New York 80.3 Data Gravity Score 79.6 London Data Gravity Score 167.1 Singapore Data Gravity Score 118.2 ™ Enterprise Data Growth Driving Data Localization Global MTDC Leader 80% By 2025, 80% of da
Slide 7: Financial Results
Financial Results DIGITAL REALTY | 4Q20 FINANCIAL RESULTS | FEBRUARY 11, 2021 | 7
Slide 8: Digital Transformation Driving Steady Demand
Digital Transformation Driving Steady Demand Global Full-Product Spectrum Provides Broadest Solutions HISTORICAL BOOKINGS ANNUALIZED GAAP BASE RENT $ in millions Space & Power Interconnection #1 $150 #2 #3 $100 $50 $0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 4Q20 BOOKINGS 0-1 MW > 1 MW
Slide 9: Communities of Interest Attracting New Logos
Cloud-Based Travel Communities of Interest Cyber Provider Retail Attracting New Logos 120 new logos Digital Telecom Video Game Provider Developer 33% of total bookings from 0-1 MW + interconnection Global Exchange Financial Operator Services 74% of total bookings outside North America Note: For quar
Slide 10: Top-Line Step Function
Top-Line Step Function Healthy Backlog Sets a Solid Foundation BACKLOG ROLL-FORWARD (1) COMMENCEMENT TIMING (2) $ in millions $ in millions Digital Realty Backlog Unconsolidated Joint Venture Backlog Digital Realty Backlog Unconsolidated Joint Venture Backlog $6M $4M $74M $112M $2M $15M $15M $1M $51
Slide 11: Cycling Through Peak Vintage Renewals
Cycling Through Peak Vintage Renewals Narrowing the Gap on Cash Re-Leasing Spreads 4Q20 RE-LEASING SPREADS 0-1 MW > 1 MW OTHER (1) TOTAL RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE 0.8% 2.0% -4.6% 1.0% CASH CASH CASH CASH 1.3% 8.1% 6.1% 3.4% GAAP GAAP GAAP GAAP Signed
Slide 12: Effective Economic Risk Mitigation Strategies
Effective Economic Risk Mitigation Strategies Benefits of Scale and Diversification on Display EXPOSURE BY REVENUE (1) CUSTOMER CONCENTRATION BY REVENUE (2) USD CAD GBP EURO JPY HKD SGD AUD BRL SEK DKK CHF KES Content Potential At-Risk 2% 16% 1% Financial Enterprise 11% 2% 4% 2% 11% 14% 2% Cloud 61%
Slide 13: Four Quarter Two-Step
Four Quarter Two-Step Beat, Dip, Shuffle, Bounce 2021E CORE FFO PER SHARE 4Q20 NOI Growth Asset Sales Down-Time 1Q21 2Q21 3Q21 4Q21 on Vacancy Note: Based on management estimates; actual performance may differ materially. Core FFO and NOI are non-GAAP financial measures. For descriptions and reconci
Slide 14: 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 DEBT MATURITY SCHEDULE AS OF DECEMBER 31, 2020 (1)(2) DEBT PROFILE (U.S. $ in billions) 98% Unsecured 6.9 2.3 % Unsecured Secured YEARS Weighted Avg. Weighted Avg. Maturity (1)(2) Coupon (1) $1.8 9
Slide 15: Consistent Execution on Strategic Vision
Consistent Execution on Strategic Vision Delivering Current Results, Seeding Future Growth SUCCESSFUL 4Q20 INITIATIVES 1. Strengthening Connections with Customers Delivered bookings with high-quality product mix, geographic split, new logos and volume 120 New Logos 2. Extending Our Global Platform E
Slide 16: Appendix
Appendix DIGITAL REALTY | 4Q20 FINANCIAL RESULTS | FEBRUARY 11, 2021 | 16
Slide 17: Digital Transformation Driving Steady Demand
Digital Transformation Driving Steady Demand Global Full-Product Spectrum Provides Broadest Solutions HISTORICAL BOOKINGS TRAILING FOUR-QUARTER AVERAGE ANNUALIZED GAAP BASE RENT $ in millions Space & Power Interconnection $125 $100 $75 $50 $25 $0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 202
Slide 18: Firm Fundamentals
Firm Fundamentals Robust Demand, Rational Supply NORTH AMERICA EMEA APAC 1,513 1,272 1,171 987 3Q19 3Q20 4Q19 4Q20 4Q19 4Q20 3Q19 3Q20 MEGAWATTS COMMISSIONED(1)(2) MEGAWATTS COMMISSIONED(1)(2) MEGAWATTS COMMISSIONED(1)(2) 90% 88% 91% 77% 91% 89% DIGITAL DIGITAL REGION DIGITAL REGION REGION REALTY RE
Slide 19: 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 20: 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 21: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent 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 Twelve Months Ended
Slide 22: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Funds From Operations (FFO) to Core Funds From Operations (CFFO) (in thousands, except per share and unit data) (unaudited) Three Months Ended Twelve Months Ended December
Slide 23: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent 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) Three
Slide 24: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Same Capital Cash Net Operating Income (in thousands) (unaudited) Three Months Ended Twelve Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31,
Slide 25: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Total Debt/Total Enterprise Value QE 12/31/20 Debt Service Ratio (LQA Adjusted EBITDA/GAAP interest expense plus capitalized interest and less Market value of common equity(i) $ 40,225,753 bridge facility fees) Liquidation value of pr