Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q4 2016 Earnings Presentation
27 slides from Digital Realty Trust's earnings presentation, Feb 16, 2017
Slide 1: 4Q16 Financial Results
DIGITAL REALTY DIGITAL REALTY 4Q16 FINANCIAL RESULTS FEBRUARY 2017 —> —_ Ug Ape
Slide 2: The Next Horizon
The Next Horizon Three-Year Guideposts Our Focus Our philosophy is to deliver superior returns by capitalizing on our core competencies and tailoring them to meet our customers’ growing and evolving data center needs = SUPERIOR RETURNS CAPITAL ALLOCATION PRODUCT OFFERINGS OPERATING EFFICIENCIES Expa
Slide 3: Diversifying Product Offerings
Diversifying Product Offerings AT LAUNCH IN 2017 MARKETS NORTH A ERICA , Google Cloud Platform amazon DATA CENTERS 1) Source: Gartner. Represents estimated SaaS market size in 2016 webservices SMM Microsoft SM Azure 17° MARKETS 12 NORTH AMERIC NTERNATIONAL DATA CENTERS Private Access to SaaS Applica
Slide 4: Firm Fundamentals
Firm Fundamentals Robust Demand, Rational Supply Demand Ouftpacing Supply r Data Center Markets 1016 2016 3Q16 4Q16 Market “© DLR 96% 98% LTM Digital Realty Deliveries % 15 MW 96% Leased Market Absorption-to- Construction ? 1016 2Q16 3Q16 4Q16 Market “ DLR 91% 91% LTM Digital Realty Deliveries % 13
Slide 5: Macroeconomic Outlook
3Q16 Call CURRENT Better/ October 25, 2016 February 15, 2017 Worse 2017E 2018E Global GDP Growth Forecast (1) 2017E: 3.4% 2017E: 3.4% tu 3.4% 3.6% (1) U.S. GDP Growth Forecast 2017E: 2.2% 2017E: 2.3% p 2.3% 2.5% U.S. Unemployment Rate (2) 5.0% 4.8% q 4.6% 4.5% (2) Inflation Rate – U.S. Annual CPI In
Slide 6: a DIGITAL REALTY
a DIGITAL REALTY
Slide 7: Comprehensive Solutions Attract Diverse Customer Base
Comprehensive Solutions Attract Diverse Customer Base : : «ni Total Annualized GAAP Annualized GAAP H istorical Lease Sig nings Q Product Type Base Rent / s.f.@ se Rent 2 Annualized GAAP Base Rent Tuan Xey ls: ; million O 3 million Non-Technical ) 3 million $in millions Interconnection million $60 $
Slide 8: Existing Markets and New Colocation Presence
Chicago New York Northern Virginia Los Angeles Phoenix Dallas Atlanta Existing Markets Miami New Colocation Presence
Slide 9: Front-End-Loaded Commencement Schedule
Front-End-Loaded Commencement Schedule Backlog Roll-Forward + Commencement Timing Hi current Period Backlog [Asignings Hi commencements (id total Backlog $33 $75 | $2 $50 $25 $- 3Q16 Backlog Signings Commencements 4Q16 Backlog 2017 2018 2020+ Total Backlog $in millions $125 Note: Amounts shown repre
Slide 10: Positive Mark-to-Market Across All Property Types
Positive Mark-to-Market Across All Property Types PRODUCT TYPE RENEWALS RE-LEASING SPREADS = Renewed 119,316 square feet of Turn-Key Flex® data centers at Turn-Key Flex® a rental rate increase of 2% on a cash basis and increase of 8% on a GAAP basis Powered Base = Renewed 103,235 square feet of Powe
Slide 11: 4Q16 / 4Q15 Revenue Growth
FX Represents ~ 150-250 bps Drag on Reported Results As Reported Gi Constant-Currency 15% 10% 5% 0% 4Q16 / 4Q15 4Q16 / 4Q15 4Q16 / 4Q15 4Q16 / 4Q15 2016 / 2015 Revenue Growth Adj. EBITDA Same-Capital Cash Core FFO/sh Core FFO/sh Growth © NOI Growth ® Growth ® Growth ® Note: Constant-currency, Adjust
Slide 12: Ample Liquidity to Fund Future Growth
Ample Liquidity to Fund Future Growth (S in billions) Remaining Forward Equity Offering $0.2 Bn Repayment of Maturing Debt $0.1 Bn Asset Sales $0.1 Bn Preferred Equity Redemption $0.2 Bn Cash Flow from Operations © $0.4Bn Recurring CapEx and Leasing Costs $0.1 Bn Bond Issuance and / or Bank Debt $0.
Slide 13: Currency Exposure
USD CAD GBP EURO JPY HKD SGD AUD
Slide 14: Nominal Near-Term Maturities; No Bar Too Tall
Nominal Near-Term Maturities; No Bar Too Tall DEBT MATURITY SCHEDULE “GS in billions) CURRENT CAPITAL STRUCTURE “? = Secured Mortgage Debt = Pro Rata Share of JV Debt = Unsecured Term Loan = Unsecured Green Bonds = Unsecured Prudential Shelf Facility = Unsecured Notes = Unsecured Global Facility $2.
Slide 15: Slide 15
Slide 16: Delivering Current Results, Seeding Future Growth
Delivering Current Results, Seeding Future Growth Successful 2016 Initiatives ALLOCATING CAPITAL PRUDENTLY ENHANCING PRODUCT OFFERINGS DELIVERING DOUBLE-DIGIT AFFO/SH GROWTH STRENGTHENING THE BALANCE SHEET i 4Q16 EARNINGS CALL & PRESENTATION | FEBRUARY . 16 . 2017
Slide 17: Q&A
Slide 18: Robust Long-Term Demand, Lumpy Near-Term Signings
Robust Long-Term Demand, Lumpy Near-Term Signings Diverse Customer Base + Product Offerings Historical Lease Signings f. Annualized GAAP Annualized GAAP an Product T Base Rent /sf.@ Base Rent Trailing Four-Quarter Average seer WE eseRentis ase Ren . Turn-Key Flex® 5 million Annualized GAAP Base Rent
Slide 19: U.S. Major Metro Area Data Center Supply
U.S. Major Metro Area Data Center Supply “? Supply Largely Concentrated in Most Active Metro Areas in megawatts 4Q16 ™ Current Supply “? “New Construction = Digital Realty Inventory ” 120 100 80 60 40 — 20 —>— 4 i — —_ —— —— — Boston Chicago Dallas Houston N Virgina NY Metro Phoenix Silicon Valley i
Slide 20: Appendix
Appendix 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,
Slide 21: Appendix
Appendix EBITDA and Adjusted EBITDA: We believe that earnings before interest, loss from early extinguishment of debt, income taxes and depreciation and amortization, or EBITDA, and Adjusted EBITDA (as defined below), are useful supplemental performance measures because they allow investors to view
Slide 22: Forward-Looking Statements
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 forwarctlooking statements include statements relating to:
Slide 23: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Three Months Ended Year Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 FFO available to common stockholders and unitholders -- basic and diluted $ 255,377_$ 117,538 $ 867,662 __$ 687,896 Weighted average
Slide 24: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent 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) Three Months Ended Year Ended December
Slide 25: 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 Year Ended December 31, 2016
Slide 26: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent 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 EBITDA Net income (loss) available to co
Slide 27: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items To Their Closest GAAP Equivalent Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Same Capital Cash Net Operating Income (in thousands) (unaudited) Three Months Ended Year Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Rent