Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q4 2013 Earnings Presentation
22 slides from Digital Realty Trust's earnings presentation, Feb 25, 2014
Slide 1: 4Q13 Earnings Conference Call Presentation
4Q13 Earnings Conference Call Presentation February 25, 2014 DIGITAL REALTY Data Center Solutions MMM RM MMM It Ut MOM MMM BSS iN AN \ M A i \ ANN ALANA AN AY HMA NS ummm CL TL CLL
Slide 2: Historical Signings – Annualized GAAP Base Rent
Annualized GAAP Base Annualized GAAP Type of Space Total SF Signed Rent psf Base Rent Turn-Key Flex® 320,323 $130 $41.5 million Powered Base Building® 34,805 $35 $1.2 million Custom Solutions 15,320 $139 $2.1 million Colocation 41,429 $185 $7.7 million Non-Technical 57,460 $29 $1.7 million Total 469
Slide 3: GAAP Annualized Base Rent
GAAP Annualized Base Rent $ in millions TKF PBB Custom Solutions DC Master Lease Colo Non-Tech $200 $161 $150 $137 $112 $112 $106 $100 $64 $56 $50 $0 2007 2008 2009 2010 2011 2012 2013 TKF Rates/PSF - $128 $153 $158 $172 $183 $162 $146 Global
Slide 4: Signed $22 million of renewal leases
Turn-Key Flex ® Powered Base Building® Total Data Center Signed $22 million of renewal leases Rental rates on renewals increased by 3.6% (cash) and 18.9% (GAAP) for 60% total data center space 51.1% Renewed 73,000 square feet of 50% Powered Base Building® data centers with rental rate increases
Slide 5: Signings by quarter and expected commencement quarter
Expected Commencement Quarter 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 2016+ Acq & Pre 4Q11 $66.8 $20.9 $10.4 $13.8 $0.4 $7.3 $.2 $2.5 $1.3 $1.0 $.0 $.0 $1.6 $.0 $.0 $.0 $.0 $2.3 $5.1 4Q11 $53.0 $1.3 $12.7 $1.1 $12.6 $14.3 $.0 $.0 $2.3 $.0 $.0 $.0 $.0 $.0
Slide 6: Contractual NOI backlog
$ in millions $1,100 $1,072 $36 $1,050 $12 $1,023 $28 $1,000 $15 $961 $3 $23 $950 $6 $900 $850 $800 4Q13 4Q13 run-rate 4Q13 4Q13 4Q13 leases FY14 leasing 2014 FY14 leasing 2015+ leasing 2015+ Annualized NOI, adjustments (4) acquisitions (5) unconsolidated commenced backlog Contractual NOI backlog ba
Slide 7: Global cloud infrastructure spending and IP traffic
Global business spending for infrastructure and services related to the cloud will reach $174 billion in 2014, a 20% increase from 2013(1) Global consumer spending on digital games, apps, and online movies passed $57 billion in 2013, up almost 30 percent from $44 billion in 2012(2) Global IP Tra
Slide 8: Available Supply, New Construction, Sublease Availability
in megawatts Available Supply New Construction Sublease Availability Potential Future Sublease Space DLR Inventory 80 60 41 36 40 26 22 20 18 15 11 11 - Boston Chicago Dallas Houston N Virginia NY Metro Phoenix Silicon Valley
Slide 9: Available Supply, New Construction, Sublease Availability
in megawatts Available Supply New Construction Sublease Availability Potential Future Sublease Space DLR Inventory 80 60 48 46 40 25 22 19 20 18 15 11 - Boston Chicago Dallas Houston N Virginia NY Metro Phoenix Silicon Valley
Slide 10: Performance-based equity vesting: threshold, target, high
Threshold Target High MSCI Index Relative 0 bps 325 bps +650 bps Performance Performance 25% 50% 100% Vesting Percentage More closely aligns management’s interests with shareholders’ Incentivizes the creation of sustainable, long-term shareholder value Fosters a culture of ownership Total sh
Slide 11: Leverage and coverage ratios versus peers
Net Debt / LQA Adjusted EBITDA(1) Net Debt + Preferred / LQA Adjusted EBITDA(1) 8.0x 8.0x 7.0x 6.6x 6.5x 6.6x 6.6x 6.2x 5.7x 5.6x 5.7x 6.0x 5.4x 5.3x 5.1x 6.0x 5.3x 5.2x 4.0x 4.0x 2.0x 2.0x 0.0x 0.0x EQR BXP AVB KIM DLR FRT SPG KIM BXP EQR DLR AVB FRT SPG Interest Coverage(2) Fixed Charge Coverage(2
Slide 12: Dividends per share history
$4.00 $3.32 $3.12 $2.92 $3.00 $2.72 $2.02 $2.00 $1.47 $1.26 $1.17 $1.00 $1.08 $1.00 $0.00 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E (1)
Slide 13: 636 Pierce Street acquisition and JV contribution
Property 636 Pierce Street Market New York / New Jersey Metro Property Type Data center Acquisition Date December 19, 2013 Purchase Price $35.3 million Size 108,336 square feet Occupancy 100% Tenant AA-rated financial services company Remaining Lease 9.2 years Term Lease Type Abs
Slide 14: Core FFO per share: guidance vs actual
Core FFO per share $4.80 $0.01 $4.78 $0.01 $0.01 $0.01 $0.02 $0.04 $4.70 $4.67 $4.60 $4.50 $4.40 FY '13 Core FFO - Lower interest and Compensation Other revenue and Lower tax Higher actual OpEx FY '13 Core FFO - Guidance preferred dividend (1) accrual fee income expense (3) Fx rates (4) Savings Actu
Slide 15: Improved Supplemental Disclosure
G DIGITAL REALTY Data Center Solutions Improved Supplemental Disclosure DRIVING IMPROVED ASSET UTILIZATION
Slide 16: Appendix
G DIGITAL REALTY Data Center Solutions Appendix
Slide 17: Forward-looking statements
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 include statements relating to our expected development pl
Slide 18: Non-GAAP financial measures: FFO definitions
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 may differ from those of other REITs, and, therefor
Slide 19: EBITDA and Adjusted EBITDA definitions
Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) and Adjusted EBITDA We believe that earnings before interest expense, income taxes, depreciation and amortization, or EBITDA, and Adjusted EBITDA (as defined below), are useful supplemental performance measures because they allow
Slide 20: Reconciliation of Net Income to FFO
Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Net Income Available to Common Stockholders to Funds From Operations (FFO) Three Months Ended Year Ended (in thousands, except per share and unit data) December 31, 2013 September 30, 2013 December 31, 2013 (unaudited) FFO available to co
Slide 21: Reconciliation of projected net income to FFO and NOI
Digital Realty Trust, Inc. and Subsidiaries A reconciliation of the range of 2013 projected net income to projected FFO and core FFO follows: Reconciliation of Operating Income to Net Operating Income (NOI) (in thousands) Low - High (unaudited) Net income available to common stockholders per diluted
Slide 22: Digital Realty
b DIGITAL REALTY Data Center Solutions