EX-99.1 2 dex991.htm MATERIALS TO BE PRESENTED AT INVESTOR MEETINGS DURING NOVEMBER 2007 Materials to be presented at investor meetings during November 2007
Investor Meetings
November 2007
Foundation of the Digital World
Exhibit 99.1

1
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 and projections related to growth in the Software as a Service (SaaS) and e-commerce market,
the digital communication and distribution market, and the data storage market, online advertising, the market effects of
regulatory requirements and litigation, the disaster recovery market, estimates of sufficiency of power and cooling in existing
datacenters, the replacement cost of our assets, redevelopment costs in our buildings, and time periods to stabilization of our
development
space,
the
effect
new
leases
will
have
on
our
rental
revenues
and
results
of
operations,
lease
expiration
rates,
the effect of leasing and acquisition on our FFO, estimates of the value of our redevelopment portfolio and annualized GAAP
rent. Such statements are subject to risks, uncertainties and assumptions and are not guarantees of future performance and
may be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control that may cause
actual results to vary materially. Some of the risks and uncertainties include, among others, the following: adverse economic or
real estate developments in our markets or the technology industry; general and local economic conditions; defaults on or non-
renewal of leases by tenants; increased interest rates and operating costs; our inability to manage domestic and international
growth
effectively;
difficulty
acquiring
or
operating
properties
in
foreign
jurisdictions,
changes
in
foreign
laws
and
regulations,
including those related to taxation and real estate ownership and operation, increased interest rates and operating costs;
inability to acquire new properties (including those we are in the process of acquiring); our failure to obtain necessary outside
financing; increased construction costs; decreased rental rates or increased vacancy rates; difficulties in identifying properties
to acquire and completing acquisitions at acceptable return levels; our failure to successfully operate acquired properties and
operations; failure of acquired properties to perform as expected; our failure to successfully develop or redevelop properties
acquired for that purpose or unexpected costs related to development or redevelopment; our failure to maintain our status as a
REIT; possible adverse changes to tax law; environmental uncertainties and risks related to natural disasters; environmental or
contamination issues at our buildings; financial market fluctuations; changes in foreign currency exchange rates; risks of
operating
in
foreign
countries;
and
changes
in
real
estate
and
zoning
laws
and
increases
in
real
property
tax
rates.
The
risks
described
above
are
not
exhaustive,
and
additional
factors
could
adversely
affect
our
business
and
financial
performance,
including those discussed in our annual report on Form 10-K for the year ended December 31, 2006 and subsequent filings
with the Securities and Exchange Commission. We expressly disclaim any responsibility to update forward-looking statements,
whether as a result of new information, future events or otherwise.

2
Digital Realty Trust Overview
Diverse base of 444 tenants consisting of
leading global companies across various
industries resulting in $307.3 million in
annualized rent on a straight-line basis, or
$31.30 psf
(1)
Own 67 properties comprising 12.0 million
rsf,
which
includes
1.7
million
rsf
of
space
held for redevelopment
(2)
Portfolio occupancy of 95.1% and “same
store”
occupancy of 94.4%
(3)
Assets strategically located in 26 top
markets throughout North America and
Europe
DLR is the leading institutional owner focused on mission-critical
datacenters throughout North America and Europe.
11830 Webb Chapel Road
Dallas, TX
(1)
Annualized rent on a straight-line basis represents the monthly straight-line rent as of September 30, 2007 multiplied by 12.
(2)
Including property acquisitions as of November 7, 2007, excluding one property held through an investment in an unconsolidated joint venture.
(3)
Occupancy is as of September 30, 2007, net of redevelopment space.  Same store occupancy includes properties acquired before December 31, 2005, excluding
properties sold in 2006 and 2007.

3
DLR Properties Feature Advanced Technical Systems
Between
$500
and
$1,000
psf
typically
invested
in
DLR
buildings,
creating
a
barrier
to
exit for tenants and discouraging speculative new supply.
Power backup/redundancy
Power management/conversion
Precision air cooling/handling
Systems and security controls

4
DLR Organizational Depth and Breadth
146 employees
(1)
Core capabilities:
–
Acquisitions
–
Sales & Technical Services
Sales
Engineering
Design & Construction
–
Operations
Portfolio Management
Technical Operations
–
Finance
Accounting
Capital Markets
Taxation
Investor Relations
–
Legal
–
Human Resources
Corporate headquarters
–
San Francisco
Regional offices
–
North America
Los Angeles
Phoenix
Dallas
Chicago
Northern Virginia
New York
Boston
–
Europe
London
Dublin
Paris
(1)  As of November 7, 2007

5
DLR’s Competitive Advantage: Dedicated Technical Professionals
Staff of over 75 DLR technical professionals:
–
IT sales team
Focus on end-user, IT professionals (CIO or CTO)
–
Datacenter sales engineers
Provide value engineering and custom design expertise
–
Design and construction experts
Disciplined approach to project management
Volume purchase agreements for equipment and services
Best-in-class engineering and contracting
–
Datacenter facilities management team
Best-in-class operating policies and procedures
Fully-integrated Building Automation Systems
Global preventative maintenance agreements
Operating scale and process-based approach result in significant cost
savings and added value for tenants.
DLR possesses the necessary scale to support these specialized professionals.

6
DLR has a Unique Portfolio of Datacenter Properties
Internet Gateways
–
Highly strategic assets that are
extremely difficult to replicate due to their
existing IP network infrastructure
–
Serve as the hub for Internet and data
communications within and between
major metropolitan areas
–
Frequently serve as a super-regional
connection point with multiple anchor
tenants
Corporate Datacenters
–
Storage/server intensive buildings
–
Provide a secure 24x7 environment for
the storage and processing of mission-
critical electronic information
–
Used to house primary IT operations:
transaction processing, data storage,
disaster recovery, CRM and email
(1)
Calculation based on average annualized rents using in-place leases as of September 30, 2007.
(2)
Includes occupied and vacant square feet.  In most cases DLR either owns the improvements or has the option to require the tenant to restore the space to its
original shell condition at the end of the lease term.
DLR has approximately 7.7 million sf of improved datacenter space
(2)
Portfolio Distribution
(1)
Data Center
39%
Internet Gateway
51%
Non-Technical
10%

7
DLR
Owns
Over
1,100
MW
of
Utility
Power
Capacity
(1)
Top 15 Properties
(2)
:
Property Name
Market
Capacity (MW)
Devon Shafron Drive (3 Buildings)
Northern Virginia
225
                   
350 East Cermak Road
Chicago
100
                   
3 Corporate Place
New York
44
                     
114 Rue Ambroise Croizat
Paris, France
40
                     
2045 & 2055 LaFayette Street
Silicon Valley
40
                     
44470 Chilum Place
Northern Virginia
36
                     
150 South First Street
Silicon Valley
36
                     
1500 Space Park
Santa Clara
34
                     
101 Aquila Way
Atlanta
30
                     
14901 FAA Boulevard
Dallas
25
                     
155 Comtock Street
Santa Clara
25
                     
2401 Walsh Street
Silicon Valley
25
                     
2403 Walsh Street
Silicon Valley
25
                     
4700 Old Ironsides Drive
Silicon Valley
25
                     
8534 Concord Center Drive
Denver
23
                     
Total Power Capacity - Top 15 Properties
733
                  
(1)
Utility Power Capacity is defined as the power that could potentially be provided by the utility company depending upon factors such as peak demand load at the property.
(2)
As of September 30, 2007.

8
Region
West
Midwest
East
Europe
Total
# of Properties
21
16
21
9
67
Total RSF
3,676,000
3,852,000
3,584,000
908,000
12,020,000
Total Improved
Datacenter RSF
2,502,000
2,395,000
2,279,000
507,000
7,683,000
DLR Presence in 26 Top Markets
Note:  Table above includes properties owned as of November 7, 2007, excluding one property held through an investment in an unconsolidated joint venture.

9
DLR Properties Support a Variety of Industry Verticals
DLR provides real estate solutions for its diverse tenant base.
Technology
Internet
Enterprise
Communications
Energy
Manu/Services
Financial

10
DLR Tenant Distribution
Tenant
% of Annualized
Rent
Savvis
12.7%
Qwest
8.9%
Equinix
4.0%
TelX
3.6%
AT&T
3.2%
NTT Verio
2.7%
Comverse Technology,Inc.
2.6%
JP Morgan Chase
2.6%
Microsoft
2.3%
Level 3
2.2%
Total
44.8%
(1)
Calculation based on average annualized rents using in place leases as of September 30, 2007, excluding one property held through an investment in an
unconsolidated joint venture.
(2)
DLR’s Internet Enterprise tenants consist of Microsoft, Yahoo, Google, eBay and Amazon totaling 891,000 square feet.
No
single
tenant
accounts
for
more
than
13%
of
annualized
rent
(1)
.
Communications
Services
28%
IT Services
37%
Internet Enterprise
5%
Professional &
Financial Services
12%
Other Technology
6%
Non-Technology
12%

11
Strong Trends Drive Sustained Demand for DLR Space
Primary Growth Drivers
By 2008, 50% of existing corporate
datacenters will have insufficient power and
cooling capacity to meet the demands of
high-density equipment
(3)
Increased business continuity and records
retention efforts due to federal regulatory,
legislative and litigation requirements
Significant growth in online advertising: up
30% in 2006; expected 19% increase in
2007
(4)
U.S. e-commerce spending increased 24%
during 2006
(5)
HIPAA patient records security and
retention regulations
Other Drivers –
Estimated Five Year CAGRs
(1) IDC (May 2007) estimated growth in Software as a Service (SaaS) from 2006-2011.
(2)
IDC
(April
2007)
estimated
growth
of
video
infrastructure
and
VoIP
markets
from
2006-2011.
(3)
Gartner
25    Annual
Datacenter
Conference
2006.
(4) eMarketer.com, February 2007.
(5) comScore
Networks, 2007.
(6) Based on the results of a DLR-commissioned phone and web-based survey conducted by Campos Research and Analysis in the first quarter of 2007 of 150 senior IT
decision-makers at North American companies with over $1 billion in revenue or 5,000 employees.
(7) Based on the result of a DLR-commissioned phone and web-based survey conducted by Campos Research and Analysis in the third quarter of 2007 of 125 senior IT
decision-makers at European companies with over €1 billion/£667 million (€100 million/£67 million for Irish or Dutch companies) or 5,000 employees.
34%
30%
24%
(1)
(2)
(2)
85% of US Enterprises plan to expand their
datacenters with 77% of those expanding in
two or more locations
(6)
82% of European Enterprises plan to
expand their datacenters with 79% of those
expanding in two or more locations
(7)
0%
10%
20%
30%
40%
SaaS
Video on Demand
VoIP
th

12
DLR Growth Drivers
Leasing of Turn-Key
Datacenter   
and
Powered Base
Building    Space
–
Redevelopment
Inventory
Acquisitions
–
Value-Add Income
Producing Properties
–
Vacant Properties for
Redevelopment
DLR growth is derived from two sources.
TM
TM

13
Leasing Drives Internal Growth
YTD 2007 DLR commenced 68 leases totaling 611,000 sf, contributing
approximately
$33.3
million
in
annualized
GAAP
rent
(1)
.
(1)
GAAP rental revenues include total rent for both renewals and expansions.
(2)
Excludes leases for parking garages and rooftops.
$1.0 million
$19.00
52,000
24
Non-Technical
(2)
$15.1 million
$34.00
441,000
10
Powered Base Building™
$17.2 million
$146.00
118,000
34
Turn-Key Datacenter™
Annualized
GAAP Rent
Annualized GAAP
Rent PSF
Total SF
Leased
# of
Leases
Type of Space
Leases
Signed
YTD
as
of
September
30,
2007:
78
leases
totaling
569,000
sf
of
space,
including
190,000
sf
of
Turn-Key
Datacenter
TM
,
308,000
sf
of
Powered
Base
Building
TM
,
and
721,000
sf
of
non-technical
space,
representing
annualized
GAAP rent of $38.9 million.
Leases Commenced YTD as of September 30, 2007:

14
$61,617
$64,388
$66,338
$68,516
$75,235
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
3Q2006
4Q2006
1Q2007
2Q2007
3Q2007
Same Store Growth
(1)
Same store properties were acquired before December 31, 2005, excluding properties sold in 2006 and 2007.
(2)
Quarterly operating revenue includes rental and tenant reimbursement revenue.
Strong
Increase
in
Same
Store
Quarterly
Operating
Revenue
(1)(2)
Same store cash NOI increased to $40.8 million in the 3Q07, up 14.6% from $35.6 million in 3Q06.

15
Case Studies:  DLR’s Value-Add Leasing
(1)  Calculation based on IPO date of November 2004 and actual annualized net operating income (NOI) as of September 30, 2007. See page 28 for a description of NOI.
350 East Cermak Road
1100 Space Park Drive
300 Boulevard East
200 Paul Avenue
Property Name
Location
Acquisition / IPO Date
% Change in NOI
from later of
Acquisition or IPO
(1)
Annualized
NOI
(1)
300 Boulevard East
Weehawken, NJ
Nov-04
89.3%
$12,994,000
1100 Space Park
Santa Clara, CA
Nov-04
95.0%
$6,968,000
200 Paul Avenue
San Francisco, CA
Nov-04
32.5%
$15,427,000
350 East Cermak Road
Chicago, IL
May-05
96.2%
$25,116,000
600 West 7th Street
Los Angeles
Nov-04
113.9%
$11,750,000

16
DLR Redevelopment Program
Redevelopment inventory totals 1.7
million rsf
(1)
with potential for up to
1.1 million rsf
of datacenter
(2)
:
–
Approximately 76% of
redevelopment space in income-
producing properties
–
Remaining 24% of
redevelopment space in five
vacant buildings
Redevelopment costs vary by
building:
–
Powered Base Building 
structural upgrades: $35 -
$75
(3)
per rsf
–
Turn-Key Datacenter      and
Build-to-Suit: $520 to $900 per
rsf
(4)
(funding available through
DLR)
Primary Growth Driver
(1)
As of November 7, 2007
(2)
Assumes datacenter footprint is 60% of rentable square footage.
(3)
DLR estimate.
(4)
Source: DPR Construction, Inc. (October 2007)
TM
TM

17
Redevelopment Program Progress Report
•
Construction projects currently underway in 9 U.S. and European markets totaling
approximately 440,000 rentable square feet of Turn-Key Datacentre™, New
Powered
Base
Building™
shell
construction
and
Build-to-Suit
space
(1)
•
DLR’s Turn-Key Datacenters™
–
Move-in ready, physically secure facilities with redundant power and cooling
capabilities
–
Measuring 8,000 –
12,000 square feet of raised-floor featuring DLR’s POD
Architecture™
•
Stabilized income projected over the next 24 months
Turn-Key Datacenter™
Built-to-Suit
(1)
As of September 30, 2007

18
Cost Per Gross Square Foot
Low
High
Land
(1)
$25
$75
Base Building
Building Shell
$80
$160
Electrical Systems
$280
$460
Mechanical Systems (HVAC)
$125
$215
Datacenter Improvements
Fire Protection
$15
$25
Other Construction / Fees
$100
$200
Sub total
$520
$900
Total Development Costs
$625
$1,135
Cost Components
Source:  DPR Construction, Inc. based on datacenter projects with improvements similar to DLR (October 2007).
(1)
DLR Estimate
Replacement Cost Estimate:
Replacement Cost Illustrates the Value of DLR’s Portfolio

19
$847.2
$1,044.3
$1,137.4
$1,413.4
$1,508.5
$1,593.6
$1,648.2
$1,794.4
$2,066.2
$2,298.7
$2,457.5
$2,740.2
$2,535.5
$750
$1,250
$1,750
$2,250
$2,750
Sep-04
Dec-04
Mar-05
Jun-05
Sep-05
Dec-05
Mar-06
Jun-06
Sep-06
Dec-06
Mar-07
Jun-07
Sep-07
Proven Track Record: Strong Acquisition Activity
Since its IPO, DLR has more than doubled its total assets through
property acquisitions.
Total Undepreciated
Assets
($000s)

20
(1)
Net rentable square feet figures excludes space held for redevelopment.
(2)
A
leasehold
interest
consisting
of
two
suites
in
111
8th
Ave.
(NY)
acquired
from
NYC
Connect.
(3)
Devon Shafron Drive consists of 43881, 43831 & 43791 Devin Shafron Drive (VA).
(4)
9.4 acre development site in suburban London, England with planning permission for a datacenter facility.
(5)
Legal title to these properties is currently held by a 1031 exchange accommodator.
(6)
Includes a $2.3 million earn-out payment made at closing.
(7)
DLR owns a 50% ownership interest in a consolidated joint venture which owns this property. At the time of acquisition, the property was encumbered by $5.5 million of debt,
which DLR guaranteed along with its joint venture partner.
(8)
Includes land that can support the development of datacenter facilities for a potential of up to 290,000 sf.
DLR has acquired new properties totaling approximately $280 million in 2007.
2007 Acquisition Activity
Property
Metropolitan Area
Purchase Price
(in millions)
Total Rentable
Square Feet
Total Net
Rentable
Square Feet
Total Square
Feet Held for
Redevelopment
Percentage of
Net Rentable
Square Feet
Occupied
(1)
21110 Ridgetop
Northern Virginia
$17.2
135,500
135,500
-
100%
3011 Lafayette Street
Silicon Valley
$13.7
90,800
-
90,800
-
44470 Chilum
Place
Northern Virginia
$43.1
95,400
95,400
-
100%
111 Eighth Avenue
(2)
New York City
$24.4
33,700
33,700
-
91%
Devon Shafron
Drive
(3)
Northern Virginia
$63.0
432,000
167,000
265,000
100%
Mundells
Roundabout
(4)
London, England
$31.4
-
-
-
-
210 Tucker
(5)
St. Louis, MI
$20.8
(6)
201,600
139,600
62,000
95%
900 Walnut
(5)
St. Louis, MI
$34.5
(6)
112,300
112,300
-
99%
1 Savvis
Parkway
(5)
St. Louis, MI
$27.7
156,000
156,000
-
100%
1500 Space Park Drive
Silicon Valley
$3.7
(7)
49,900
-
49,900
(8)
-
YTD 2007
$279.5
1,307,200
839,500
467,700

21
0.6%
4.0%
5.1%
8.5%
15.9%
1.5%
4.6%
4.6%
16.7%
7.3%
26.3%
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Thereafter
DLR’s Model Features Long-Term, Stable Leases
The stability of our long-term leases complements our growth.
Note:
Excludes
vacant
square
footage
of
0.5
million
square
feet
and
1.7
million
square
feet
of
space
held
for
redevelopment
as
of
September
30,
2007.
Lease Expiration as a Percentage of Net Rentable Square Feet
17.6% through 2010
The average lease term is approximately 13 years with 7.5 years remaining.
Leases typically contain 3% annual rent bumps.

22
DLR Financial Overview
Strong and consistent FFO
(1)
growth
–
$0.51 per diluted share and unit for 3Q07, +24% from 3Q06
–
$1.63 per diluted share and unit for 2006, +19% from 2005
Increasing NOI
(1)
–
$64.9 million in 3Q07, +4% from $62.7 million in 2Q07 and
+31% from $49.5 million in 3Q06
Well supported dividend
–
3.1% yield
(2)
–
FFO
/
AFFO
(1)
payout
ratio
of
66%
/
90%
(3)
for
3Q07
–
Increased quarterly common dividend in 4Q07, +8.3%
(1)
FFO, AFFO and NOI are non-GAAP financial measures. For a description of FFO, AFFO and NOI see page 28.
(2)
Based on most recent quarterly dividend annualized.  Dividend yield based on November 9, 2007 closing stock price of $39.66.
(3)
FFO
payout
ratio
is
dividend
declared
per
common
share
and
unit
divided
by
diluted
FFO
per
share
and
unit.
AFFO
payout
ratio
is
dividend
declared
per
common
share
and unit divided by diluted AFFO per share and unit. For a description of FFO and AFFO see page 28. For a reconciliation to net income see page 29.

23
DLR Capital Raising Activities
Proven access to capital
–
YTD 2007
Issued 4.025 million shares of common stock, resulting in
$150.5 of net proceeds
Entered into enhanced $650 million revolving credit facility
–
Increased size from $500 million
–
Reduced applicable margin ranges by 12.5 to 25 basis points
–
Extended maturity to 2010
–
Modified covenants to enhance financial flexibility
Issued $175.0 million of 4.375% convertible preferred: 20%
premium
Sold two non-core assets resulting in a total gain on sale of
$18.0 million
Raised approximately $2.4 billion of capital since IPO

24
DLR 2008 Guidance
(1)
2007
revised
projected
Funds
from
Operations
(FFO)
(2)
per
share
guidance:
$2.02
to
$2.04
(1)
Based on third quarter 2007 earnings conference call dated November 7, 2007.
(2)
FFO and AFFO are non GAAP financial measures. For a description of FFO and AFFO see page 28. For a reconciliation to net income see page 29.
(3)
Includes
$2.4
million
of
acquisition
related
costs
previously
capitalized,
which
now
must
be
expensed
under
new
accounting
rules
commencing
January
1,
2008.
Internal Growth 
10.2% to 15.0%
FFO
(2)
Per Share Growth
Leasing 
890,000 to  990,000 sq ft of
Turn-Key Datacenter™ &
Powered Base Building™ space
(average gross rent $90 / sq ft)
100,000 to 125,000 sq ft of basic
commercial space (average
gross rent $19 / sq ft)
Acquisitions
$300 - $350 million 
o
$100 to $150 million of vacant
properties for redevelopment
o
$200 million of income
producing properties at an
average cap rate of 8.00%
External Growth
2.5% to 3.8%
FFO
(2)
Per Share Growth
12.7% to 18.8%
Overall FFO
(2)
Per Share Growth
•
Capital Expenditure for redevelopment of $340 million
•
Total G&A of $44 million
(3)
2008
projected
Funds
from
Operations
(FFO)
(2)
per
share
guidance:
$2.30
to
$2.40:

25
DLR Capital Structure
Preferred
7.6%
Fixed Rate
Debt 24.9%
Variable Rate
Debt 3.8%
Equity 63.7%
DLR Employs a Conservative Capital Structure
Weighted average cost of
debt: 5.84%
(5)
; approximately
87% fixed rate debt
(6)
Coverage ratios
(7)
:
–
Debt service:  3.4x
–
Fixed charge: 2.4x
Total Enterprise Value
(1)
$4,483.6 million
Dividend Yield / Rate:  3.1% / $1.24
(1)
Based on 72.0 million shares & OP units outstanding as of November 9, 2007 and $39.66 share price as of close of market on November 9, 2007 equal to $2.9 billion in equity.
(2)
Excludes $1.8 million of unamortized debt premium for 1125 Energy Park Drive & 731 East Trade Street.
(3)
Credit facility as of November 9, 2007 based on outstanding amount of $167.4 million; fluctuates based on amount outstanding.
(4)
Includes $175 million of 4.375% convertible preferred stock issued in April 2007.
(5)
Excluding the equity component of the exchangeable debt, the weighted average cost of debt is 5.67%.
(6)
Includes $172.5M of exchangeable debt and $257.4M of swapped floating rate debt.
(7)
As
of
September
30,
2007;
debt
service
coverage
ratio
is
Adjusted
EBITDA
divided
by
GAAP
interest
expense;
fixed
charge
coverage
ratio
is
Adjusted
EBITDA
divided
by
fix
ed charges.  See p. 28 for a description of Adjusted EBITDA and p. 29 for a reconciliation of Adjusted EBITDA, GAAP interest expense and fixed charge coverage ratio.
(3)
(2)(6)
(4)
(1)

26
DLR Implied Cap Rate
($ in thousands, except per square foot values)
Current Market Value of Common Stock and OP Units
(1)
$2,773,701
$2,773,701
$2,773,701
Liquidation Value of Perpetual Preferred Stock
341,750
341,750
341,750
Net Debt
(2)
1,285,926
1,285,926
1,285,926
Less: Book Value of Construction Work in Progress
(107,768)
(107,768)
(107,768)
Less: Value of Redevelopment Portfolio
(3)
(512,418)
(854,030)
(1,195,641)
Range of Values per Square Foot
$300
$500
$700
Total Implied Value of Income Producing Assets
$3,781,192
$3,439,580
$3,097,968
Cash Net Operating Income (3Q Annualized)
(4)
223,272
223,272
223,272
Implied Cap Rate (3Q Annualized)
(4)
5.9%
6.5%
7.2%
Total Portfolio Square Footage (in thousands)
(5)
12,020
12,020
12,020
Total Portfolio Square Footage w/o Redevelopment Space (in thousands)
(5)
10,312
10,312
10,312
Value per Square Foot w/o Redevelopment Space
$367
$334
$300
(1)
Represents
69,937
diluted
shares
&
OP
units
(as
of
November
9,
2007)
and
$39.66
share
price
as
of
close
of
market
on
November
9,
2007.
(2)
Represents
total
debt
balance
of
$1,335,108
less
cash
balance
of
$49,182
(as
of
September
30,
2007).
(3)
Reflects 1,708 square feet of redevelopment space (as of September 30, 2007) at hypothetical values per square foot.
(4)
Annualized cash NOI calculation based on third quarter 2007 NOI of $65,713 less straight line rents of $7,204 and above and below market
rent amortization of $2,691. In 3Q 2007, office properties contributed cash NOI of $6,198. See page 27 for a description of NOI and Cash NOI.
(5)
As of September 30, 2007.

28
Definition of non-GAAP financial measures
This presentation includes 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, therefore, may not be comparable. The non-GAAP financial
measures should not be considered an alternative to net income or any other GAAP measurement of performance and should not be considered an alternative to cash
flows from operating, investing or financing activities as a measure of liquidity.
Funds from Operations (FFO)
We calculate Funds from Operations, or FFO, in accordance with the standards established by the National Association of Real Estate Investment Trusts, or NAREIT. 
FFO represents net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of property, real estate related depreciation and
amortization (excluding amortization of deferred financing costs) and after adjustments for unconsolidated partnerships and joint ventures.  Management uses FFO as a
supplemental performance measure because, in excluding real estate related depreciation and amortization and gains and losses from property dispositions, it provides a
performance
measure
that,
when
compared
year
over
year,
captures
trends
in
occupancy
rates,
rental
rates
and
operating
costs.
We
also
believe
that,
as
a
widely
recognized
measure
of
the
performance
of
REITs,
FFO
will
be
used
by
investors
as
a
basis
to
compare
our
operating
performance
with
that
of
other
REITs.
However,
because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions, nor the
level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and
could
materially
impact
our
results
from
operations,
the
utility
of
FFO
as
a
measure
of
our
performance
is
limited.
Other
REITs
may
not
calculate
FFO
in
accordance
with
the
NAREIT
definition
and,
accordingly,
our
FFO
may
not
be
comparable
to
such
other
REITs’
FFO.
Accordingly,
FFO
should
be
considered
only
as
a
supplement
to
net
income as a measure of our performance.
Adjusted Funds From Operations (AFFO)
We present adjusted funds from operations, or AFFO, as a supplemental operating measure because, when compared year over year, it assesses our ability to fund
dividend and distribution requirements from our operating activities. We also believe that, as a widely recognized measure of the operations of REITs, AFFO will be used
by investors as a basis to assess our ability to fund dividend payments in comparison to other REITs. We calculate adjusted funds from operations, or AFFO, by adding
to or subtracting from FFO (i) non-real estate depreciation, (ii) amortization of deferred financing costs (iii) non cash compensation (iv) loss from early extinguishment of
debt (v) straight line rents (vi) fair value of lease revenue amortization (vii) capitalized leasing payroll (viii) recurring tenant improvements and (ix) capitalized leasing
commissions.
Other
equity
REITs
may
not
calculate
AFFO
in
a
consistent
manner.
Accordingly,
our
AFFO
may
not
be
comparable
to
other
equity
REITs’
AFFO.
AFFO
should
be
considered
only
as
a
supplement
to
net
income
computed
in
accordance
with
GAAP
as
a
measure
of
our
operations.
Net Operating Income (NOI) and Cash NOI
NOI represents rental revenue and tenant reimbursement revenue less rental property operating and maintenance, property taxes and insurance expenses (as reflected
in statement of operations). NOI is commonly used by stockholders, company management and industry analysts as a measurement of operating performance of the
company’s rental portfolio. Cash NOI is NOI less straight-line rents and above and below market rent amortization. Cash NOI is commonly used by stockholders,
company management and industry analysts as a measure of property operating performance on a cash basis. However, because NOI and cash NOI exclude
depreciation
and
amortization
and
capture
neither
the
changes
in
the
value
of
our
properties
that
result
from
use
or
market
conditions,
nor
the
level
of
capital
expenditur
es and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our
results from operations, the utility of NOI and cash NOI as measures of our performance is limited. Other REITs may not calculate NOI and cash NOI in the
same
manner
we
do
and,
accordingly,
our
NOI
and
cash
NOI
may
not
be
comparable
to
such
other
REITs’
NOI
and
cash
NOI.
Accordingly,
NOI
and
cash
NOI
should
be
considered only as supplements to net income as measures of our performance.
Earnings Before Interest Taxes Depreciation and Amortization (EBITDA)
We present Earnings Before Interest Taxes Depreciation and Amortization or EBITDA as a supplemental operating measure because, because in excluding interest,
taxes,
depreciation
and
amortization,
it
permits
investors
to
view
income
from
operations
without
the
impact
of
the
cost
of
debt,
non
cash
depreciation
and
amortization
and
taxes.
We
also
believe
that,
as
awidely
recognized
measure
of
the
performance
of
other
companies
in
the
data
center
industry
thatwill
be
used
by
investors
as
a
basis
to
compare
our
operating
performance
with
that
of
others
in
that
industry.
However,
because
EBITDA
excludes
interest,
taxes,
depreciation
and
amortization
and
captures
neither
the
changes
in
the
value
of
our
properties
that
result
from
use
or
market
conditions,
nor
the
current
level
of
capital
expenditures
and
other
capitalize
d items, all of which have real economic effect and could materially impact our results from operations, the utility of EBITDA as a measure of our performance is
limited.
Accordingly, EBITDA should be considered only as a supplement to net income as a measure of our performance.
Each of FFO and Adjusted EBITDA exclude items that have real economic effect and could materially impact our results from operations, and therefore the utility of FFO
and Adjusted EBTIDA as a measure of our performance is limited.
Nothing
contained
herein
is
intended
to
revise
or
confirm
the
earnings,
FFO
or
acquisition
guidance
we
discussed
on
our
Earnings
Conference
Call
held
on
November
7,
2007
and
available
on
our
website
at
www.digitalrealtytrust.com.

29
Reconciliation of non-GAAP items to their closest GAAP
2007 FFO Reconciliation
         
(Low - High)
Net income available to common stockholders per diluted share 
$0.35 - 0.37
Less:
Gain on sale of assets
($0.25)
        Add:
Minority interest                                  
$0.01
Real estate depreciation and amortization          
$1.91
Projected FFO per diluted share and unit            
$2.02 – 2.04
2008 FFO Reconciliation
         
(Low - High)
Net income available to common stockholders per diluted share 
$0.33 - 0.42
Add:
Minority interest                                  
$0.01 - 0.02
Real estate depreciation and amortization          
$1.96
Projected FFO per diluted share and unit
$2.30 – 2.40
Funds from operations
(1)
Cash interest expense and fixed charges (including discontinued operations)
Q307
Q207
Q107
Q406
Q306
Q206
Q106
FY2006
FY2005
Q307
Q207
Q107
Q406
Q306
Q206
Q106
FY2006
FY2005
Net income (loss) available to common stockholders
(224)
$     
$2,591
$18,641
$2,978
$11,342
$1,650
$1,642
$17,612
$6,087
Total GAAP interest expense (including
discontinued operations)
$16,683
$15,142
$17,323
$14,569
$14,533
$12,181
$11,388
$52,671
$39,122
Capitalized interest
3,096
2,792
1,507
1,114
917
1,058
762
3,851
279
Minority interests in operating partnership including
discontinued operations
(27)
310
3,762
1,276
8,464
1,340
1,846
12,926
8,268
Change in accrued interest and other noncash
amounts
(315)
(3,575)
(948)
(3,206)
(2,590)
57
(1,906)
(7,645)
(4,345)
Real estate related depreciation and amortization
(2)
35,216
31,708
29,643
28,055
24,454
20,238
18,185
90,932
62,171
Cash interest expense
19,464
14,359
17,882
12,477
12,860
13,296
10,244
48,877
35,056
Real estate related depreciation and amortization related
to investment in unconsolidated joint venture
969
1,010
1,036
796
-
-
-
796
-
Scheduled debt principal payments and
preferred
dividends
7,215
6,902
5,085
5,063
4,960
4,567
4,869
19,458
17,275
Gain on sale of assets
-
-
(18,049)
(80)
(18,016)
-
-
(18,096)
-
Total fixed charges
$26,679
$21,261
$22,967
$17,540
$17,820
$17,863
$15,113
$68,335
$52,331
Funds from operations (FFO)
$35,934
$35,619
$35,033
$33,025
$26,244
$23,228
$21,673
$104,170
$76,526
Funds from operations (FFO) per diluted share
$       0.51
$   0.51
$    0.50
$   0.48
$    0.41
$   0.38
$   0.36
$     1.63
$    1.37
Reconciliation of EBITDA
Net income (loss) per diluted share available to
common
stockholders
$          -
$   0.04
$    0.32
$   0.06
$    0.30
$   0.05
$   0.06
$     0.47
$    0.25
Q307
Q207
Q107
Q406
Q306
Q206
Q106
FY2006
FY2005
Funds from operations (FFO)
$35,934
$35,619
$35,033
$33,025
$26,244
$23,228
$21,673
$104,170
$76,526
Net income (loss) available to common
stockholders
(224)
$   
$2,591
$18,641
$2,978
$11,342
$1,650
$1,642
$17,612
$6,087
Non real estate depreciation
129
124
135
118
285
37
71
511
61
Amortization of deferred financing costs
1,682
1,321
1,389
1,115
916
937
795
3,763
2,965
Interest
16,683
15,142
17,323
14,569
14,533
12,181
11,388
52,671
39,122
Non cash compensation
1,103
836
507
491
430
435
431
1,787
481
Depreciation and amortization
35,345
31,832
29,778
28,173
24,739
20,275
18,256
91,443
62,232
Loss from early extinguishment of debt
-
-
-
6
40
425
57
528
1,021
Straight line rents
(7,204)
(5,770)
(5,111)
(5,810)
(3,856)
(4,233)
(3,843)
(17,742)
(13,023)
EBITDA
51,804
49,565
65,742
45,720
50,614
34,106
31,286
161,726
107,441
Above and below market rent amortization
(2,691)
(2,578)
(2,338)
(2,238)
(2,837)
(1,504)
(433)
(7,012)
(1,717)
Capitalized leasing compensation
(300)
(175)
(175)
(217)
(185)
(888)
(764)
(2,054)
(781)
Gain on sale of assets, net of minority interests
-
-
15,019
56
10,318
-
-
10,374
-
Recurring capital expenditures and tenant improvements
(2,765)
99
(393)
(2,574)
(344)
(338)
(904)
(4,160)
(2,897)
Capitalized leasing commissions
(1,389)
(3,836)
(439)
(3,716)
(1,523)
(1,682)
(265)
(7,186)
(3,051)
EBITDA, less effect of gain on sale of assets
$51,804
$49,565
$50,723
$45,664
$40,296
$34,106
$31,286
$151,352
$107,441
Adjusted funds from operations
(1)
$24,499
$25,640
$28,608
$20,200
$19,170
$16,417
$16,818
$72,605
$59,585
Reconciliation of Adjusted EBITDA
(2) Real estate depreciation and amortization was computed as follows:
Q307
Q207
Q107
Q406
Q306
Q206
Q106
FY2006
FY2005
EBITDA
$51,804
$49,565
$65,742
$45,720
$50,614
$34,106
$31,286
$161,726
$107,441
Q307
Q207
Q107
Q406
Q306
Q206
Q106
FY2006
FY2005
Depreciation and amortization per income statement
$35,345
$31,832
$29,399
$27,290
$23,768
$18,534
$16,537
$86,129
$59,616
Minority interests
(27)
310
3,762
1,276
8,464
1,340
1,846
12,926
8,268
Depreciation and amortization of discontinued operations
-
-
379
883
971
1,741
1,719
5,314
2,616
Preferred stock dividends
5,359
5,167
3,445
3,445
3,445
3,445
3,445
13,780
10,014
Non real estate depreciation
(129)
(124)
(135)
(118)
(285)
(37)
(71)
(511)
(61)
$35,216
$31,708
$29,643
$28,055
$24,454
$20,238
$18,185
$90,932
$62,171
Adjusted EBITDA
57,136
55,042
72,949
50,441
62,523
38,891
36,577
188,432
125,723
Weighted-average shares outstanding -
diluted
69,937
70,229
69,831
69,213
64,397
60,959
59,874
63,870
55,761
Gain on sale of assets
-
-
18,049
80
18,016
-
-
18,096
-
Adjusted EBITDA, less effect of gain on sale
of
assets
$57,136
$55,042
$54,900
$50,361
$44,507
$38,891
$36,577
$170,336
$107,441
Reconciliation of Net Operating Income (NOI)
Q307
Q207
Q107
Q406
Q306
Q206
Q106
FY2006
FY2005
Operating income
21,425
$
22,541
$
21,965
$
20,943
$
18,451
$
17,787
$
17,388
$
74,569
$ 
59,587
$ 
Less:
Other revenue
(154)
(247)
-
(197)
-
-
(168)
(365)
(5,829)
Add:
Depreciation and amortization
35,345
31,832
29,399
27,290
23,768
18,534
16,537
86,129
55,701
General and administrative
7,775
8,456
7,210
6,535
4,986
4,674
4,246
20,441
12,615
Other expenses
495
128
188
173
607
150
181
1,111
1,617
Net Operating Income
64,886
$
62,710
$
58,762
$
54,744
$
47,812
$
41,145
$
38,184
$
181,885
$
123,691
$
(1) Funds from operations and Adjusted Funds from operations for
all periods presented above includes the results of properties sold in
2006 and 2007; 7979 East Tufts Avenue (July 2006), 100 Technology Center Drive (March 2007) and 4055 Valley View Lane (March 2007).