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 April 2018
Global. Connected. Sustainable. i 1018 FINANCIAL RESULTS APRIL 2018 DIGITAL REALTY
Slide 2: Serving a Social Purpose
Serving a Social Purpose Deliv ing Sustainable Growth for All Stakeholders ENVIRONMENTAL 2017 NAREIT SOCIAL Committed to enhancing the well- eing of our stockholders, customers, employees, vendors, and communities 2015 Minimum stock hip requirements rate ie sees and m: me ‘Green tar ening 3 tena con
Slide 3: Firm Fundamentals: Robust Demand, Rational Supply
Firm Fundamentals Robust Demand, Rational Supply NORTH AMERICA 1998 oO 950 1014 MEGAWATTS COMMISSIONED® MEGAWATTS COMMISSIONED” 665 MEGAWATTS COMMISSIONED 90% DIGITAL REALTY OCCUPANCY RATE (1018) 85% DIGITAL REALTY 90% REGION OCCUPANCY RATE (1018) OCCUPANCY RATE (1018) 2.4x Market Absorption-to-Cons
Slide 4: Delivering Superior Risk-Adjusted Returns
Delivering Superior Risk-Adjusted Returns Investing Opportunistically to Expand Global Platform CORE VALUE- OPPOR- ADD __ TUNISTIC ™ First mover 18%+ Full product offering on a global scale 12%-18% eo W Strategic, accretive, prudently financed ° e° . ee z ee @ A: =) nee th 6% -9% cae Proven platform
Slide 5: Macroeconomic and market assumptions: 4Q17 call vs. current
4Q17 CALL CURRENT Better/ February 14, 2018 April 25, 2018 Worse 2018E 2019E M A C R O EC O N O M IC Global GDP Growth Forecast (1) 2018E: 3.9% 2018E: 3.9% tu 3.9% 3.9% 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 –
Slide 6: Digital Realty
ti DIGITAL REALTY
Slide 7: Lumpy but Healthy
Lumpy but Healthy Comprehensive Solutions Support Diverse Customer Base BUILDING?
Slide 8: Healthy Backlog Sets a Solid Foundation
Healthy Backlog Sets a Solid Foundation Front-End-Loaded Commencement Schedule Sinmillions Sin millions Current Period Backlog Hl Signings Il Commencements Bl Total Backlog Current Period Backlog_ ll 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 -Market Across All Property Type RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL wate CHANGE Ldly 4.0% 3.5% 3.9% CASH CASH CASH CASH 14.5% 32.3% So 9.7% GAAP GAAP GAAP GAAP = Renewed 220188 square feet © Renewed 6381 square feet of |= Renewed 75,
Slide 10: USD CAD GBP EURO JPY HKD SGD AUD bps bps
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 7% Growth (excl. DFT) 39% 6% Growth (incl. DFT) Growth (excl. DFT. 1018 1018/1017 1018/1017 Sin millions $in millions $731 $744 $451 610 $428 $551 $566 $323 $329 $352 10177 2017 3017 4017 1018 1017 2017 3017
Slide 12: Four Quarter Two-Step
Four Quarter Two-Step Beat, Dip, Shuffle, Bounce 1018A NOIGrowth GSA Investments Asset Sales 2018E 3018 4Q18E Lease ‘Commencements
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 Dyers : 3.4% wei erage Weighted Debt Maturity Average Coupon $25 13 0 Ben gs $08 $05 y ’ s Ky sor ee $00 $00 5s O 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Pro Rata Share of JV De
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 s the right to propos mendments to t
Slide 15: Slide 15
Slide 16: Robust Long-Term Demand, Lumpy Near-Term Signings
Robust Long-Term Demand, Lumpy Near-Term Signings Diverse Customer Base + Product Offerings “shuattltA
Slide 17: Appendix: Management Statements on Non-GAAP Measures
Appendix Management Statements on Non-GAAP Me ITs, and, theeloce, ma compara alive To cash flaws fom operating. FFO, in accordance Estate Investment Trusts, or NAREIT. FFO represents net income (loss) adjustments for ‘gains andlsses from pr es tends conditions, nr ‘materially impact our fnancal perf
Slide 18: Appendix: Management Statements on Non-GAAP Measures
Appendix Management Statements on Non-GAAP Measures tale, or EBITDA and Adjusted (gain) loss on real estate transactions, equity in ‘of debt and, with respect fo Adjusted EBITOA, severance, equity acceleration and legal expenses, ransaction and a tion, and legal and issuance costs Dates in the evalu
Slide 19: Appendix
Appendix
Slide 20: Funds from operations
Funds from operations Q118 Q117 FY 2017 Net income (loss) available to common stockholders $ 86,298 $ 66,145 $ 173,149 Noncontrolling interests in operating partnership 3,480 904 3,770 Real estate related depreciation and amortization (2) 291,686 173,447 830,252 Real estate related depreciation and