Digital Realty Trust, Inc. · NYSE:DLR
Digital Realty Trust — Q4 2017 Earnings Presentation
23 slides from Digital Realty Trust's earnings presentation, Feb 15, 2018
Slide 1: 4Q17 Financial Results
> ke 4 < Lu iad < E oO fa) FEBRUARY 2018 Global. Connected. Sustainable. 4Q17 FINANCIAL RESULTS
Slide 2: Navigating the Future
Navigating the Future Sustainable Growth for Customers, Shareholders and Employees GLOBAL CONNECTED ws SUSTAINABLE 1,4 i 4Q17 DIGITAL REALTY FINANCIAL RESULTS | FEBRUARY 15, 2018
Slide 3: Fourth Quarter Investment Activities
Fourth Quarter Investment Activities Strategic and Complementary JOINT VENTURES ACQUISITIONS DISPOSITIONS OOOO ry . en, . e* . ~ on | 44874 Moran Road, Sterling, VA * Sale Price: $34 million * Cap Rate: 7% Osaka and Tokyo, Japan 505 N. Railroad Ave. expe. Digital Realty: 50% Northlake, IL re = Mitsu
Slide 4: Firm Fundamentals
Firm Fundamentals Robust Demand, Rational Supply gsm 90% «=H 98% Major U.S. Metro Areas - Healthy volumes of underway supply in 89% 89% 89% 85% 93% 91% 92% U.S. major metro areas balanced by 3% high leasing velocity 1017 2017 3017 4Q17 1017 2017 3017 4Q17 1017 2017 3017 4Q17 Metro DLR Metro DLR Metr
Slide 5: Macroeconomic assumptions and forecasts
3Q17 CALL CURRENT Better/ October 20, 2017 February 14, 2018 Worse 2018E 2019E (1) Global GDP Growth Forecast 2018E: 3.7% 2018E: 3.7% tu 3.7% 3.6% U.S. GDP Growth Forecast (1) 2018E: 2.3% 2018E: 2.7% p 2.7% 2.3% U.S. Unemployment Rate (2) 4.2% 4.1% q 3.9% 3.8% Inflation Rate – U.S. Annual CPI Index
Slide 6: Digital Realty
a DIGITAL REALTY
Slide 7: Comprehensive Solutions Support Diverse Customer Base
Comprehensive Solutions Support Diverse Customer Base . . co. Annualized GAAP_~— Annualized GAAP io) Historical Lease Signings Product Type otal sf. Signed Base Rent / sf. se Rent @ Annualized GAAP Base Rent 170 ; $40.22 million million $ in millions Interconnection $60 $40 $20 » ll 1Q 2Q 3Q 4Q 10 2
Slide 8: Front-End-Loaded Commencement Schedule
Front-End-Loaded Commencement Schedule Backlog Roll-Forward + Commencement Timing BH Current Period Backlog [ij Signings [jj Commencements [jj Total Backlog $in millions $150 ed $150 $38 $2 $8 —— ‘cei 2 eS $100 $100 T 1 $34 1 $116 $50 $50 $71 s o s 3Q17 Backlog Signings Commencements Other 4Q17 Back
Slide 9: Positive Mark-to-Market Across All Property Types
Positive Mark-to-Market Across All Property Types PRODUCT TYPE RENEWALS 4Q17 RE-LEASING SPREADS = Renewed 196,924 square feet of Turn-Key Flex® data centers Tu rn-Key Flex® at a rental rate increase of 14% on a cash basis and a 7.1% increase on a GAAP basis Powered Base = Renewed 14,790 square feet
Slide 10: Currency and cost of capital
USD CAD GBP EURO JPY HKD SGD AUD 234 bps 119 bps
Slide 11: High Quality of Earnings with Proven Growth Profile
High Quality of Earnings with Proven Growth Profile OPERATING REVENUE 34% | 6% Growth Cincl. DFT) 4Q16 Growth Cincl ADJUSTED EBITDA“ 37% DFT) 4Q17 $ in millions) $731 $548 $551 $566 4Q16°1017 2Q17 3Q17 4Q17 $ in millions) $428 §312 $323 $329 9352 4Q16 1Q17 2Q17 3Q17 4Q17
Slide 12: Clear Runway on the Left; No Bar Too Tall on the Right
Clear Runway on the Left; No Bar Too Tall on the Right DEBT MATURITY“ (USD in billions) $24 13 $10 sos 5, $1 gio gu $0.5 $01 $0.2 |] $0.0 $0.0 i 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 ™@ Pro Rata Share of JV Debt ~ Unsecured Term Loan Unsecured Senior Notes ™ Unsecured Credit Fa
Slide 13: Delivering Current Results, Seeding Future Growth
Delivering Current Results, Seeding Future Growth Successful Fourth Quarter 2017 Initiatives ALLOCATING CAPITAL PRUDENTLY EXECUTING ON INTEGRATION EXCEEDING EXPECTATIONS FUNDING GROWTH INTERNALLY i 4Q17 DIGITAL REALTY FINANCIAL RESULTS | FEBRUARY 15, 2018
Slide 14: Appendix
Slide 15: Robust Long-Term Demand, Lumpy Near-Term Signings
Robust Long-Term Demand, Lumpy Near-Term Signings Diverse Customer Base + Product Offerings Historical Lease Signings Annualized GAAP — Annualized GAAP aye Product Ti f. Base Rent /s£.@ se Rent 2 Trailing Four-Quarter Average million Annualized GAAP Base Rent million o a Ii $40 | | s20 | | . | 1Q 20
Slide 16: U.S. Major Metro Area Data Center Supply
U.S. Major Metro Area Data Center Supply “? Supply Largely Concentrated in Most Active Metro Areas 4Q17 Gin megawatts) ™ Current Supply “®” “New Construction —_ Digital Realty Inventory 120 100 80 60 40 20 me «= wat wl | fe) = =. 4 | so Boston Chicago Dallas Houston N Virgina NY Metro Phoenix Silico
Slide 17: Appendix
Appendix The information included in this presentation contains certain non-GAAP financial measures that management believes are helpfulin 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 18: Appendix
Appendix EBITDA and Adjusted EBITD. 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 o
Slide 19: 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 forward-looking statements include statements relating to:
Slide 20: Reconciliation of Net Income to Funds From Operations (FFO)
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 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Ne
Slide 21: Reconciliation of FFO to Core FFO
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, 2017 December 31, 2016 December 31, 2017 December 31, 2016 FFO availabl
Slide 22: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
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 (in thousands) (unaudited) Three Months Ended Year Ended December 31, 2017 December 31, 2016 Decemb
Slide 23: Reconciliation of Same Capital Cash Net Operating Income
Digital Realty Trust, Inc. and Subsidiaries Reconciliation of Same Capital Cash Net Operating Income (in thousands) (unaudited) Three Months Ended Year Ended December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Rental revenues $ 243,242 $ 243,495 $ 980,994 $ 974,918 Tenant reimbur