Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q3 2022 Earnings Presentation
25 slides from Digital Realty Trust's earnings presentation, Oct 26, 2022
Slide 1: Global. Connected. Sustainable. 3Q22 Financial Results
Global. Connected. Sustainable. 3Q22 FINANCIAL RESULTS OCTOBER 2022
Slide 2: A global platform supporting our customers' data center requirements
A global platform supporting our customers’ data center requirements 4,000+ 188,000+ 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: Sustainability Focus and Performance
Sustainability Focus and Performance Delivering Sustainable Growth for All Stakeholders Environmental Social Governance Appointed Mary Hogan Preusse as Chairman of the Board, which Solar Panel Pic 1st in GRESB Funded philanthropic organizations to support 2022 aligns with Digital Realty’s In the U.S
Slide 4: 3Q22 Financial Results
3Q22 Financial Results 3Q22 Financial Results 4
Slide 5: Digital Transformation Driving Steady Demand
Digital HISTORICAL BOOKINGS Transformation ANNUALIZED GAAP BASE RENT $ in millions Driving Steady $150 Demand Global Full-Product Spectrum Provides $100 Broadest Solutions $50 • Record leasing driven by >1 MW segment $0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 3Q22 BOOKINGS 0-1 MW INTE
Slide 6: Record Interconnection Revenue
Connected Data Communities Record Interconnection Revenue 103 new logos Defense Contractor Luxury Jewelry Retailer $42 million total 3Q bookings from 0-1 MW + Interconnection 45% of 0-1 MW + Interconnection bookings were outside the Americas Insurance Provider Pharmacy Note: As of September 30, 2022
Slide 7: Top-Line Step Function: Record Leasing Drives Record Backlog
Top-Line Step Function BACKLOG ROLL-FORWARD (1) $ in millions COMMENCEMENT TIMING (2) $ in millions Record Leasing Drives $163M $90M Record Backlog $79M $466M $146M $466M $153M $393M $144M • 25% of backlog will $204M commence in 4Q22 $173M $424M • 45% of backlog will $351M $424M commence in 2023 $11
Slide 8: Improving Pricing Environment
Improving Pricing 3Q22 RE-LEASING SPREADS Environment 2022E Renewal Spreads 0-1 MW > 1 MW OTHER (1) TOTAL Remain Slightly Positive RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE 3.1% (8.8)% 3.6% (0.5)% CASH CASH CASH CASH 4.0% (2.2)% 13.3% 2.3% • Consistent growth in GAA
Slide 9: Economic Risk Mitigation Strategies
EXPOSURE BY REVENUE (1) Economic Risk 56% USD EURO 21% SGD 6% GBP 5% BRL 3% ZAR 2% JPY 2% CHF 1% AUD 1% CAD <1% SEK <1% <1% DKK <1% HKD <1% KES <1% HRK MZN <1% Mitigation Strategies <1% 5% < 1% < 1% Strong Dollar Weighs 21% 1% < 1% 2% 56% < 1% < 1% 6% • Local operations funded in local currencies ac
Slide 10: Constant-Currency Analysis
Constant- As Reported Constant Currency Currency Analysis 11.2% Double-Digit Top-Line 10.3% Growth 6.8% 5.2% • CC same capital data 5.6% center revenue 3.0% growth turns positive 0.1% • Demonstrates improving organic 3Q22 / 3Q21 (2.4%) FY22E / FY21 FY22E / FY21 Core FFO per Share trajectory Revenue
Slide 11: 2022 Quarterly Cadence
2022 Quarterly 2022E CORE FFO PER SHARE Cadence Backlog Supportive Though Interest and FX Weigh • Higher NOI growth offsets higher interest expense and stiff FX headwinds 1Q22 2Q22 3Q22 NOI Interest FX 4Q22 Note: Based on management estimates; actual performance may differ materially. Core FFO and N
Slide 12: Committed to Conservative Capital Structure
Committed to Conservative Capital Structure Net Debt to Adjusted EBITDA (1) Fixed Charge Coverage Ratio (2) Diverse Menu Options, 6.7x Minimizing Cost 6.4x (0.3x) 5.7x 5.5x 0.2x • Drew $400M of equity forward, leaving $540M 20% 17% Floating outstanding Rate Debt (3) Floating Rate Debt (3) • Fully fu
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 September 30, 2022 (1)(2) (U.S. $ in billions) $3.4 Unsecured 5.4 YEARS 2.4 % 97% Unsecured Secured Weighted Avg. Weighted Avg. Coupon (1)(3) Maturity (1
Slide 14: Q&A
Q&A Global. Connected. Sustainable. 3Q22 Financial Results 14
Slide 15: Consistent Execution on Strategic Vision
Consistent Execution on Strategic Vision Delivering Current Results, Seeding Future Growth SUCCESSFUL 3Q22 INITIATIVES 1. Strengthening Connections with Customers Booked $176 million of new business and landed 103 new logos 2. Enhancing our Global Platform Closed Teraco Investment on August 1st 3. E
Slide 16: Appendix
Appendix 3Q22 Financial Results 16
Slide 17: 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: 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 19: Reconciliation of Non-GAAP Items
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) Reconciliation of Three Months Ended September 30, 2022 September 30, 2021 Non-GAAP Items Net income ava
Slide 20: Reconciliation of Non-GAAP Items
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) Reconciliation of Three Months Ended September 30, 2022 September 30, 2021 Non-GAAP Items Net income ava
Slide 21: Reconciliation of Non-GAAP Items
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 Three Months Ended Three Mont
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 To Their Closest GAAP EBITDA (in thousands) Equivalent (unaudited) 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 To Their Closest GAAP (in thousands) (unaudited) Equivalent Three Months Ended September 30, 2022 September 30, 2021 Rental revenues $ 574,898 $ 610,471 Tenant reimbu
Slide 24: Reconciliation of Non-GAAP Items
Total Debt/Total Enterprise Value QE 9/30/22 Reconciliation of Debt Service Ratio (LQA Adjusted EBITDA/GAAP interest expense plus capitalized interest and less bridge facility (i) Market value of common equity $ 29,139,454 fees) (ii) Liquidation value of preferred equity 755,000 Total GAAP interest
Slide 25: Thank you
r Thank you FN DIGITAL Lv REALTY.