Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q3 2020 Earnings Presentation
24 slides from Digital Realty Trust's earnings presentation, Oct 30, 2020
Slide 1: 3Q20 Financial Results
Global. Connected. Sustainable. 3Q20 FINANCIAL RESULTS OCTOBER 2020 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 | 3Q20 FINANCIAL RESULTS | OCTOBER 29, 2020 | 2
Slide 3: Prioritizing Health and Safety Amid Global Pandemic
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 continuity capacity • Consistent, robust communications cadence C
Slide 4: Serving a Social Purpose
Serving a Social Purpose Delivering Sustainable Growth for All Stakeholders ENVIRONMENTAL SOCIAL GOVERNANCE Dallas Portfolio $1 million+ philanthropic effort Enhanced Board diversity Powered by 70% Renewable Energy supporting COVID-19 pandemic relief and racial justice efforts 2020 with the addition
Slide 5: Expanding Global Platform Supporting Customer Growth
Zagreb Zurich Expanding Global Platform Supporting Customer Growth Stockholm Copenhagen Dublin Manchester Vienna Madrid Amsterdam London Dusseldorf Brussels Frankfurt Paris Vienna Zurich Geneva Zagreb Marseille Madrid a Marseille Frankfurt European Platform +70,000 700+ 16 Cross-Connects Connectivit
Slide 6: Combining Leading Platforms in EMEA
Combining Leading Platforms in EMEA Further Solidifying Global Connection with Customers Zagreb, Croatia Customers Communities of Interest Growth EMEA London Data Gravity Score 167.1 Two-way traffic, with recent referral wins Capitalizing on investment grade balance sheet on both sides of the pond t
Slide 7: Data Gravity Key Mega Trend
Data Gravity Key Mega Trend Global Industry Challenge Tokyo Data Gravity Score New York 80.3 Data Gravity Score 79.6 London Data Gravity Score 167.1 ™ Identified the Issue Cracked the Code Projected the Growth Data Gravity intensity expected to double annually through 2024 CREATE PROCESS AGGREGATE A
Slide 8: Financial Results
Financial Results DIGITAL REALTY | 3Q20 FINANCIAL RESULTS | OCTOBER 29, 2020 | 8
Slide 9: Powerful Global Platform
Powerful Global Platform Expanding Customer Base and Reach Global Presence Customers and Communities Growth 284 4,000+ $2 Bn Data Centers Customers of Development 48 162,000 190 MW Metros Cross-Connects of Construction 86% 30% 56% Total Occupancy of Revenue from EMEA Pre-Leased Note: As of September
Slide 10: 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 $150 $144 $100 $94 $89 $50 $0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 3Q20 BOOKINGS 0-1 MW >
Slide 11: Communities of Interest Attracting New Logos
Global Risk Communities of Interest Grocery Retailer Management Attracting New Logos 130 record new logos Cloud Biotech Gaming Platform Research 48% of total bookings from colocation + interconnection Digital IT Data Telecom Provider Analytics 59% of total bookings outside North America DIGITAL REAL
Slide 12: Top-Line Step Function: Healthy Backlog
Top-Line Step Function Healthy Backlog Sets a Solid Foundation BACKLOG ROLL-FORWARD (1) COMMENCEMENT TIMING (2) $ in millions $ in millions Digital Realty Backlog Interxion Backlog Digital Realty Backlog Interxion Backlog $25M $24M $50M $1M $75M $18M $41M $44M $27M $100M $229M $210M $185M $17M $66M
Slide 13: Cycling Through Peak Vintage Renewals
Cycling Through Peak Vintage Renewals Narrowing the Gap on Cash Re-Leasing Spreads 3Q20 RE-LEASING SPREADS 0-1 MW > 1 MW OTHER (1) TOTAL RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE -0.2% 0.0% 10.2% -0.2% CASH CASH CASH CASH 0.4% -0.1% 16.6% 0.4% GAAP GAAP GAAP GAAP Si
Slide 14: 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 LATAM Content Potential 16% At-Risk 1% 7% Enterprise Financial 4% 23% Cloud 10% 2% 61% 32% Other < 1% 10% 3% N
Slide 15: Four Quarter Two-Step
Four Quarter Two-Step Beat, Dip, Shuffle, Bounce 2020E CORE FFO PER SHARE 1Q20 2Q20 3Q20 NOI Growth Strategic Capital Normalized 4Q20 Management OpEx Note: Based on management estimates; actual performance may differ materially. Core FFO and NOI are non-GAAP financial measures. For descriptions and
Slide 16: 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 SEPTEMBER 30, 2020 (1)(2) DEBT PROFILE (U.S. $ in billions) 98% Unsecured 6.5 2.5 % Unsecured Secured YEARS Weighted Avg. Weighted Avg. Maturity (1)(2) Coupon (1) $1.7
Slide 17: Consistent Execution on Strategic Vision
Consistent Execution on Strategic Vision Delivering Current Results, Seeding Future Growth SUCCESSFUL 3Q20 INITIATIVES 1. Strengthening Connections with Customers Reached high-watermark for new logos 130 New Logos 2. Exceeding Expectations Beat quarterly consensus estimates, raised full-year outlook
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 Space & Power Interconnection $100 $75 $50 $25 $0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 3Q20 TRAILING FOUR-QUARTER AVERAG
Slide 20: Firm Fundamentals: Robust Demand, Rational Supply
Firm Fundamentals Robust Demand, Rational Supply NORTH AMERICA EMEA APAC 2,856 3,206 1,442 1,250 944 1,074 3Q19 3Q20 3Q19 3Q20 3Q19 3Q20 MEGAWATTS COMMISSIONED(1)(2) MEGAWATTS COMMISSIONED(1)(2) MEGAWATTS COMMISSIONED(1)(2) 89% 85% 86% 77% 90% 89% DIGITAL DIGITAL REGION DIGITAL REGION REALTY REGION
Slide 21: 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 22: 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 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 Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Net Income Available to Common Stockholders to Funds From Operations (FFO) Reconciliation of Net Income Available to Common Stoc
Slide 24: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items Net Debt/LQA Adjusted EBITDA QE 9/30/20 To Their Closest GAAP Equivalent Total debt at balance sheet carrying value Add: DLR share of unconsolidated joint venture debt Add: Capital lease obligations $ 12,874,760 568,757 228,486 Less: Unrestricted cash (971,305) Total