Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q2 2019 Earnings Presentation
28 slides from Digital Realty Trust's earnings presentation, Jul 30, 2019
Slide 1: Digital Realty the trusted foundation | powering your digital ambitions
Digital Realty the trusted foundation | powering your digital ambitions
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DIGITAL REALTY | 2Q19 FINANCIAL RESULTS | JULY 30, 2019 | 2
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DIGITAL REALTY | 2Q19 FINANCIAL RESULTS | JULY 30, 2019 | 3
Slide 4: Firm Fundamentals Robust Demand, Rational Supply
Firm Fundamentals Robust Demand, Rational Supply NORTH AMERICA EMEA APAC 2,714 1,234 935 2,266 1,038 669 2Q18 2Q19 2Q18 2Q19 2Q18 2Q19 MEGAWATTS COMMISSIONED(1)(2) MEGAWATTS COMMISSIONED(1)(2) MEGAWATTS COMMISSIONED(1)(2) 91% 89% 89% 82% 91% 83% DIGITAL DIGITAL DIGITAL REGION REALTY REGION REALTY RE
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DIGITAL REALTY | 2Q19 FINANCIAL RESULTS | JULY 30, 2019 | 5
Slide 6: Supportive Economic Growth Outlook Levered to Long-Term Secular Demand Drivers
Supportive Economic Growth Outlook Levered to Long-Term Secular Demand Drivers 1Q19 CALL CURRENT Better/ April 19, 2019 July 29, 2019 Worse 2019E 2020E Global GDP Growth Forecast (1) 2019E: 3.3% 2019E: 3.2% q 3.2% 3.5% U.S. GDP Growth Forecast (1) 2019E: 2.3% 2019E: 2.6% p 2.6% 1.9% U.S. Unemploymen
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DIGITAL REALTY | 2Q19 FINANCIAL RESULTS | JULY 30, 2019 | 7
Slide 8: Financial Results
Financial Results DIGITAL REALTY | 2Q19 FINANCIAL RESULTS | JULY 30, 2019 | 8
Slide 9: Lumpy But Healthy: Comprehensive Solutions Support Diverse Customer Base
Lumpy But Healthy Comprehensive Solutions Support Diverse Customer Base HISTORICAL BOOKINGS ANNUALIZED GAAP BASE RENT(1)(2) $ in millions Space & Power Interconnection #1 $100 #2 $75 #3 $50 $25 $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2Q19 BOOKINGS BY PRODUCT(1)(2) $40.5 mm $4.0 mm
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DIGITAL REALTY | 2Q19 FINANCIAL RESULTS | JULY 30, 2019 | 10
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DIGITAL REALTY | 2Q19 FINANCIAL RESULTS | JULY 30, 2019 | 11
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DIGITAL REALTY | 2Q19 FINANCIAL RESULTS | JULY 30, 2019 | 12
Slide 13: Top-Line Step Function Healthy Backlog Sets a Solid Foundation
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 $9 $8 $31 Ascenty $44 Deconsolidation $5 $
Slide 14: Holistic Approach to Customer Relationship Management
Holistic Approach to Customer Relationship Management Leveraging Multiple Touch Points to Maximize Relationship Value 2Q19 RE-LEASING SPREADS TURN-KEY FLEX® POWERED BASE BUILDING® COLOCATION TOTAL (1) RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE RENTAL RATE CHANGE -8.9% 1.0% 2.4% -5.8% C
Slide 15: Constant-Currency Growth
Constant-Currency Growth FX Represents ~ 100 bps Drag on Reported Results As Reported Constant-Currency 7.1% 6.1% 2.8% 1.4% (1.6%) (0.4%) (4.1%) (5.0%) 2Q18 / 2Q19 2Q18 / 2Q19 Adjusted 2Q18 / 2Q19 Stabilized 2Q18 / 2Q19 Core Revenue Growth EBITDA Growth (1) Cash NOI Growth (1) FFO per Share Growth (
Slide 16: Putting Exposure in Perspective
Putting Exposure in Perspective Benefits of Scale and Diversification on Display EXPOSURE BY REVENUE 2019 CORE FFO/SHARE EXPOSURE USD CAD GBP EURO JPY HKD SGD AUD 0.4% BENCHMARK 1% 9% RATES 4% +/- 100 bps 81% 0% Midpoint of 0.2% 0.0% Guidance 0% $6.60 – $6.70(1) GBP EUR +/- 10% +/- 10% 4% 1% EXCHANG
Slide 17: Four Quarter Two-Step: Beat, Dip, Shuffle, Bounce
Four Quarter Two-Step Beat, Dip, Shuffle, Bounce 2019E CORE FFO PER SHARE 1Q19 2Q19 NOI Growth FX Impact Forward Equity 3Q19 4Q19 Settlement Note: Based on management estimates; actual performance may differ materially. Core FFO and NOI are non-GAAP financial measures. For descriptions and reconcili
Slide 18: Prudently Financed Transaction Enhances Credit Profile
Prudently Financed Transaction Enhances Credit Profile Reflecting a Full-Quarter Contribution (1) (2) Net Debt to Adjusted EBITDA Fixed Charge Coverage Ratio 6.1x 0.6x 5.5x 4.4x 4.2x 0.2x 14% 5% Floating Rate Floating Rate Debt Debt(4) 2Q19 Pro Forma for 2Q19 2Q19 Pro Forma for 2Q19 Reported Forward
Slide 19: 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 JUNE 30, 2019(1)(2)(3) DEBT PROFILE (U.S. $ in billions) 99% Unsecured Unsecured Secured 6.4 YEARS 3.3% Weighted Avg. Weighted Avg. $3.1 Maturity(1)(2)(3) Coupon(1)(3)
Slide 20: Consistent Execution on Strategic Vision
Consistent Execution on Strategic Vision Delivering Current Results, Seeding Future Growth SUCCESSFUL SECOND QUARTER 2019 INITIATIVES 1. Deepening Connections with Customers #1 #2 #3 #1 New Logos, #2 Interconnection + Renewals, #3 Bookings Logos XC + Renewals Bookings 2. Extending Our Global Footpri
Slide 21: Appendix
Appendix DIGITAL REALTY | 2Q19 FINANCIAL RESULTS | JULY 30, 2019 | 21
Slide 22: Robust Long-Term Demand, Lumpy Near-Term Signings
Robust Long-Term Demand, Lumpy Near-Term Signings Diverse Customer Base + Product Offerings HISTORICAL BOOKINGS TRAILING FOUR-QUARTER AVERAGE ANNUALIZED GAAP BASE RENT(1)(2) $ in millions $80 Space & Power Interconnection $60 $40 $20 $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2Q19 TRA
Slide 23: 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 24: Management Statements on Non-GAAP Measures: EBITDA and Adjusted EBITDA
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, or EBITDA, and Adjusted EBITDA (as defined below), are useful supplemental performance measur
Slide 25: Management Statements on Non-GAAP Measures
Appendix Management Statements on Non-GAAP Measures 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 includ
Slide 26: 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 27: 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 Market value of common equity(i) $ 25,642,245 Liquidation value of preferred equity(ii) 1,111,250 Total debt at balance sheet carrying value 10,842,578 Net Debt/LQA Adjusted EBITDA Total Enterprise Va
Slide 28: Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent QE 06/30/19 Fixed Charged Ratio (LQA Adjusted EBITDA/total fixed charges) GAAP interest expense plus capitalized interest 95,544 Scheduled debt principal payments 159 Preferred dividends 16,670 Total fixed charges 112,373 Fixed charge