UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 25, 2012
DIGITAL REALTY TRUST, INC.
(Exact name of registrant as specified in its charter)
Maryland | 001-32336 | 26-0081711 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) | ||
Four Embarcadero Center, Suite 3200 San Francisco, California |
94111 | |||
(Address of principal executive offices) | (Zip Code) |
(415) 738-6500
(Registrants telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition.
The information in this Item 2.02 of this Current Report on Form 8-K is also being furnished under Item 7.01Regulation FD Disclosure of Form 8-K. Such information, including the exhibits attached hereto, is furnished pursuant to Item 2.02 and shall not be deemed filed for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or the Exchange Act, or otherwise subject to the liabilities of that Section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Act, or the Exchange Act regardless of any general incorporation language in such filing.
On July 25, 2012, we issued a press release announcing our financial results for the quarter ended June 30, 2012. The text of the press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein.
On July 25, 2012, we posted certain supplemental operating and financial data on our website located at www.digitalrealty.com. That supplemental operating and financial data is attached hereto as Exhibit 99.2 and is incorporated by reference herein.
Item 7.01 Regulation FD Disclosure.
The information in this Item 7.01 of this Current Report on Form 8-K is also being furnished under Item 2.02Results of Operations and Financial Condition of Form 8-K. Such information, including the exhibits attached hereto, is furnished pursuant to Item 7.01 and shall not be deemed filed for any purpose, including for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that Section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act regardless of any general incorporation language in such filing.
On July 25, 2012, we issued a press release announcing our financial results for the quarter ended June 30, 2012. The text of the press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein.
On July 25, 2012, we posted certain supplemental operating and financial data on our website located at www.digitalrealty.com. That supplemental operating and financial data is attached hereto as Exhibit 99.2 and is incorporated by reference herein.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. |
Description | |
99.1 | Press Release dated July 25, 2012. | |
99.2 | Supplemental Operating and Financial Data posted July 25, 2012. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Digital Realty Trust, Inc. | ||
By: | /S/ JOSHUA A. MILLS | |
Joshua A. Mills | ||
Senior Vice President, General Counsel and Assistant Secretary |
Date: July 25, 2012
EXHIBIT INDEX
Exhibit No. |
Description | |
99.1 | Press Release dated July 25, 2012. | |
99.2 | Supplemental Operating and Financial Data posted July 25, 2012. |
Exhibit 99.1
![]() |
Four Embarcadero Center, Suite 3200 San Francisco, CA 94111 USA Tel: +1 415 738 6500 Fax: +1 415 738 6501 www.digitalrealty.com |
For Additional Information:
A. William Stein | Pamela M. Garibaldi | |||
Chief Financial Officer and | Vice President, Investor Relations and | |||
Chief Investment Officer | Corporate Marketing | |||
Digital Realty Trust, Inc. | Digital Realty Trust, Inc. | |||
+1 (415) 738-6500 | +1 (415) 738-6500 |
DIGITAL REALTY TRUST, INC. REPORTS SECOND QUARTER FFO OF $1.09 PER
SHARE, UP 2.8% FROM FIRST QUARTER 2012
Company updates 2012 FFO and core FFO guidance, increasing core FFO midpoint
San Francisco, Calif. (July 25, 2012) Digital Realty Trust, Inc. (NYSE: DLR), a leading global provider of data center solutions, today announced financial results for the second quarter of 2012. All per share results are on a diluted share and unit basis.
Recent Highlights:
| Reported FFO of $1.09 per share for the second quarter of 2012, up 6.9% from $1.02 per share for the second quarter of 2011. Excluding certain items that do not represent ongoing expenses or revenue streams in each quarter, second quarter 2012 core FFO was $1.07 per share, up 4.9% from second quarter 2011 core FFO of $1.02 per share; |
| Reported net income for the second quarter of 2012 of $54.0 million and net income available to common stockholders of $42.0 million, or $0.38 per share, up 15.2% from $0.33 per share for the second quarter of 2011; |
| Completed three property acquisitions during the second quarter, including two income producing properties for approximately $87.5 million and one redevelopment property for approximately $22.3 million; |
| Acquired through a joint venture with Savvis a 164,000-square-foot redevelopment property in Hong Kong, representing the Companys entrance into the Hong Kong market; |
| Completed the sale of 7.3 million shares of 6.625% Series F Cumulative Redeemable Preferred Stock, including partial exercise of the underwriters over-allotment option, and raising net proceeds of $176.3 million; |
| On July 2, 2012, completed a common stock offering of 11,500,000 shares at a price of $72.25 per share, which generated approximately $796.8 million of net proceeds; |
| On July 11, 2012, completed the acquisition of the Sentrum Portfolio, a three-property operating data center portfolio, comprising approximately 761,000 square feet in the greater London area for $1.1 billion; |
| Repaid in full a $20.5 million mortgage loan on the 800 Central Expressway property in Santa Clara, California in connection with the buy-out of the Companys joint venture partner at the property for $12.4 million; |
| Repaid in full a $25.0 million mortgage loan on the 700/750 Central Expressway office property in Santa Clara, California held in an unconsolidated joint venture in connection with the sale of the property for $47.8 million; |
| Repaid in full a $15.9 million mortgage loan on the 1201 Comstock Street property in Santa Clara, California; |
| Signed leases during the second quarter of 2012, including colocation space, expected to generate approximately $32.1 million in annualized GAAP rental revenue; |
| Commenced leases during the second quarter of 2012, including colocation space, totaling over $30.4 million of annualized GAAP rental revenue; and |
| Revising 2012 core FFO guidance range to $4.37 $4.48 per share, increasing midpoint to $4.43 per share, and updating 2012 guidance assumptions. |
Funds from operations (FFO) was $136.9 million in the second quarter of 2012, or $1.09 per share, up 2.8% from $1.06 per share in the previous quarter and up 6.9% from $1.02 per share in the second quarter of 2011.
Adjusting for items that do not represent ongoing expenses or revenue streams, second quarter 2012 core FFO was $1.07 per share, up 0.9% from first quarter 2012 core FFO of $1.06 per share and up 4.9% from second quarter 2011 core FFO of $1.02 per share, said A. William Stein, Chief Financial Officer and Chief Investment Officer of Digital Realty. The $0.02 per share decrease in core FFO compared to reported FFO was primarily due to termination fees that were partially offset by transaction and other expenses.
FFO is a supplemental non-GAAP performance measure used by the real estate industry to measure the operating performance of real estate investment trusts. FFO and core FFO should not be considered as substitutes for net income determined in accordance with U.S. GAAP as measures of financial performance. A reconciliation from U.S. GAAP net income available to common stockholders to FFO, a definition of FFO, a reconciliation from FFO to core FFO, and a definition of core FFO are included as an attachment to this press release.
2
Net income for the second quarter of 2012 was $54.0 million, compared to $49.3 million for the first quarter of 2012 and $38.2 million for the second quarter of 2011. Net income available to common stockholders in the second quarter of 2012 was $42.0 million, or $0.38 per share, compared to $39.2 million, or $0.36 per share, in the first quarter of 2012, and $32.0 million, or $0.33 per share, in the second quarter of 2011.
The Company reported total operating revenues of $303.7 million in the second quarter of 2012, up 7.3% from $283.1 million in the first quarter of 2012, and up 13.4% from $267.9 million in the second quarter of 2011.
We are extremely pleased with our performance to date this year. In addition to our solid financial and leasing results, we completed several landmark acquisitions, including the Sentrum Portfolio in London, our first property in Hong Kong with our joint venture partner Savvis, and a major redevelopment property in suburban Chicago, said Michael F. Foust, Chief Executive Officer of Digital Realty. We believe that the depth of our team combined with our financial strength and ability to access attractively priced capital to fund our growth are key differentiators for us. These core capabilities along with our focus on delivering flexible, customer driven data center solutions continue to drive value for our shareholders.
Acquisitions Activity
In the second quarter of 2012, Digital Realty and Savvis, a CenturyLink company, acquired a 164,000-square-foot (15,236-square-meter) property in Hong Kong, which is held in an unconsolidated joint venture. The property is located at Tseung Kwan O Industrial Estate in New Territories, approximately 12 miles from downtown Hong Kong. Upon redevelopment, the building will be capable of supporting approximately 5.76 megawatts of IT load capacity, with potential to add up to 2.9 megawatts of additional capacity.
In the second quarter of 2012, the Company completed three property acquisitions:
| The Company acquired a fully leased data center facility located in Austin, Texas, totaling approximately 62,000 square feet for a purchase price of $12.5 million. In connection with the acquisition, Digital Realty assumed a $6.7 million secured mortgage loan on the facility. |
| The Company acquired a data center facility located in Dallas, Texas, totaling approximately 269,600 square feet for a purchase price of approximately $75 million. The property is approximately 85% leased. |
| The Company acquired an approximately 575,000 square foot redevelopment property located in suburban Chicago for a purchase price of approximately $22.3 million. |
3
Subsequent to the end of the quarter, on July 11, 2012, the Company completed the acquisition of a three-property portfolio totaling approximately 761,000 square feet located in the greater London area, referred to as the Sentrum Portfolio. The purchase price was £715.9 million (equivalent to $1.1 billion based on the July 11, 2012 exchange rate of £1.00 to $1.55) (subject to adjustment in limited circumstances and to earn-out payments). The acquisition was funded with proceeds from our follow-on equity offering which closed on July 2, 2012 and borrowings under the global revolving credit facility.
As of July 25, 2012, the Companys portfolio comprised 108 properties, excluding three properties held in unconsolidated joint ventures, consisting of 103 data center facilities and 5 non-technical buildings totaling approximately 20.8 million net rentable square feet, including 2.3 million square feet of space held for redevelopment. The portfolio is strategically located in 32 key data center markets throughout North America, Europe, Asia and Australia.
Balance Sheet Update
Total assets grew to approximately $6.7 billion at June 30, 2012 from $6.4 billion at March 31, 2012. Total debt increased to $3.4 billion at June 30, 2012 from $3.3 billion at March 31, 2012. Stockholders equity was approximately $2.7 billion at June 30, 2012, up slightly from approximately $2.6 billion at March 31, 2012.
On April 5, 2012 and April 18, 2012, the Company completed an underwritten public offering of 7,300,000 shares of its 6.625% Series F Cumulative Redeemable Preferred Stock, par value $0.01 per share, including partial exercise of the underwriters over-allotment option, for net proceeds of approximately $176.3 million after deducting underwriting discounts and commissions and offering expenses.
On April 17, 2012, the Company closed a new $750 million U.S. dollar equivalent Senior Unsecured Multicurrency Term Loan. The term loan matures in April 2017. Pricing is based on the Companys senior unsecured debt ratings and is currently 145 basis points over the applicable index for floating rate advances. Funds have been drawn in U.S, Singapore and Australian dollars, as well as Euro and Pound Sterling denominations with the option to add Hong Kong dollars and Yen upon exercise of the $100 million U.S. dollar equivalent accordion. Covenants are consistent with our global revolving credit facility. Proceeds from the term loan were used to repay amounts outstanding under the global revolving credit facility.
4
On July 2, 2012, the Company completed an offering of 11,500,000 shares of its common stock, including 1,500,000 shares issued upon exercise of the underwriters option to purchase additional shares, which was exercised in full, at a price of $72.25 per share, for net proceeds of approximately $796.8 million after deducting underwriting discounts and commissions and offering expenses. Proceeds from the offering were used to fund a portion of the purchase price of the Sentrum Portfolio and repay amounts outstanding under the global revolving credit facility.
2012 Revised Outlook
The original guidance range of $4.34 to $4.48 per share assumed that items that did not represent ongoing revenue and expense streams would net out to zero over the course of the year. Therefore, core FFO and reported FFO would be essentially identical. As a result of the transaction costs, including debt extinguishment costs associated with the Sentrum acquisition, core FFO will now be significantly greater than reported FFO in 2012, said Mr. Stein.
FFO per share for the year ending December 31, 2012 is projected to be between $4.15 and $4.25. This guidance represents expected FFO growth of 2.2% to 4.7% over 2011 FFO of $4.06 per share. After adjusting for certain items that do not represent core revenue and expense streams for the full years 2012 and 2011, core FFO per share for the year ending December 31, 2012 is projected to be between $4.37 and $4.48, which represents expected core FFO growth of 6.8% to 9.5% over 2011 core FFO of $4.09 per share. A reconciliation of the range of 2012 projected net income to projected FFO and core FFO follows:
Low - High | ||||
Net income available to common stockholders per diluted share |
$ | 1.26 1.36 | ||
Add: |
||||
Real estate depreciation and amortization as adjusted for noncontrolling interests |
$ | 3.14 | ||
Less: |
||||
Gain on sale |
$ | (0.02) | ||
Dilutive impact of convertible preferred stock and exchangeable debentures |
$ | (0.23) | ||
Projected FFO per diluted share |
$ | 4.15 $4.25 | ||
|
|
|||
As adjusted for items that do not represent core expenses and revenue streams: |
||||
Reported Q1 items |
$ | 0.01 | ||
Reported Q2 items |
$ | (0.02) | ||
Projected Q3 transaction expenses and debt extinguishment |
$ | 0.22 $0.23 | ||
Projected Q4 transaction expenses |
$ | 0.01 | ||
Projected core FFO per diluted share |
$ | 4.37 $4.48 | ||
|
|
5
The 2012 guidance provided by Digital Realty in this press release is based on the following updated assumptions as of July 25, 2012:
| Acquisitions of income producing properties totaling $1.42 1.45 billion at an average cap rate of 7% 8.5%; |
| Commencement of leases contributing $130 $170 million of GAAP rental revenue on an annualized basis; |
| Digital Design Services revenue recognized between $7 $10 million; |
| Development and redevelopment capital expenditures of $700 $900 million; |
| Recurring capital expenditures of $40 $50 million; |
| Total G&A expenses of $60 $62 million; |
| Transaction expenses of $6 $8 million; |
| Loss from early extinguishment of debt of $30 $31 million; and |
| FX rates (USD per currency): Euro = 1.23; Pound = 1.53; SGD = 0.77; AUD = 1.00. |
Investor Conference Call Details
Digital Realty will host a conference call on Wednesday, July 25, 2012 at 10:00 am PT / 1:00 pm ET to discuss its second quarter 2012 financial results and operating performance. The conference call will feature Chief Executive Officer, Michael F. Foust, and Chief Financial Officer and Chief Investment Officer, A. William Stein. To participate in the live call, investors are invited to dial +1 (888) 701-6680 (for domestic callers) or +1 (706) 634-5758 (for international callers) and quote the conference ID # 95546174 at least five minutes prior to start time. A live webcast of the call will be available via the Investors section of Digital Realtys website at www.digitalrealty.com. Please go to the website at least 15 minutes early to register and download and install any necessary audio software. If you are unable to listen to the live conference call, a telephone and webcast replay will be available until 11:59 pm ET on Wednesday, August 15, 2012. The telephone replay can be accessed two hours after the call by dialing +1 (855) 859-2056 (for domestic callers) or +1 (404) 537-3406 (for international callers) and using the conference ID # 95546174. The webcast replay can be accessed on Digital Realtys website immediately after the live call has concluded.
6
About Digital Realty
Digital Realty Trust, Inc. focuses on delivering customer driven data center solutions by providing secure, reliable and cost effective facilities that meet each customers unique data center needs. Digital Realtys customers include domestic and international companies across multiple industry verticals ranging from information technology and Internet enterprises, to manufacturing and financial services. Digital Realtys 108 properties, excluding three properties held as investments in unconsolidated joint ventures, comprise approximately 20.8 million square feet as of July 25, 2012, including 2.3 million square feet of space held for redevelopment. Digital Realtys portfolio is located in 32 markets throughout Europe, North America, Asia and Australia. Additional information about Digital Realty is included in the Company Overview, which is available on the Investors page of Digital Realtys website at http://www.digitalrealty.com.
Safe Harbor Statement
This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to the Companys 2012 guidance and its underlying assumptions, rent from leases that have been signed but have not yet commenced and other contracted rent to be received in future periods, development and redevelopment plans, expected IT capacity of development and redevelopment projects, and expectations regarding the Companys future growth, financial resources and success. These risks and uncertainties include, among others, the following: the impact of the recent deterioration in global economic, credit and market conditions, including the downgrade of the U.S. governments credit rating; current local economic conditions in our geographic markets; decreases in information technology spending, including as a result of economic slowdowns or recession; adverse economic or real estate developments in our industry or the industry sectors that we sell to (including risks relating to decreasing real estate valuations and impairment charges); our dependence upon significant tenants; bankruptcy or insolvency of a major tenant or a significant number of smaller tenants; defaults on or non-renewal of leases by tenants; our failure to obtain necessary debt and equity financing; increased interest rates and operating costs; risks associated with using debt to fund our business activities, including re-financing and interest rate risks, our failure to repay debt when due, adverse changes in our credit ratings or our breach of covenants or other terms contained in our loan facilities and agreements; financial market fluctuations; changes in foreign currency exchange rates; our inability to manage our growth effectively; difficulty acquiring or operating properties in foreign jurisdictions; our failure to successfully integrate and operate acquired or redeveloped properties or businesses; risks related to joint venture investments, including as a result of our lack of control of such investments; delays or unexpected costs in development or redevelopment of properties; decreased rental rates or increased vacancy rates; increased competition or available supply of data
7
center space; our inability to successfully develop and lease new properties and space held for redevelopment; difficulties in identifying properties to acquire and completing acquisitions; our inability to acquire off-market properties; our inability to comply with the rules and regulations applicable to reporting companies; our failure to maintain our status as a REIT; possible adverse changes to tax laws; restrictions on our ability to engage in certain business activities; environmental uncertainties and risks related to natural disasters; losses in excess of our insurance coverage; changes in foreign laws and regulations, including those related to taxation and real estate ownership and operation; and changes in local, state and federal regulatory requirements, including changes in real estate and zoning laws and increases in real property tax rates. For a further list and description of such risks and uncertainties, see the reports and other filings by the Company with the U.S. Securities and Exchange Commission, including the Companys Annual Report on Form 10-K for the year ended December 31, 2011 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2012. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
8
Digital Realty Trust, Inc. and Subsidiaries
Condensed Consolidated Income Statements
(in thousands, except share and per share data)
(unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2012 |
June 30, 2011 |
June 30, 2012 |
June 30, 2011 |
|||||||||||||
Operating Revenues: |
||||||||||||||||
Rental |
$ | 234,923 | $ | 202,806 | $ | 457,757 | $ | 399,601 | ||||||||
Tenant reimbursements |
60,422 | 51,311 | 118,284 | 103,145 | ||||||||||||
Construction management |
1,954 | 13,759 | 4,406 | 15,576 | ||||||||||||
Other |
6,405 | 5 | 6,405 | 300 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating revenues |
303,704 | 267,881 | 586,852 | 518,622 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating Expenses: |
||||||||||||||||
Rental property operating and maintenance |
87,576 | 72,337 | 167,421 | 144,060 | ||||||||||||
Property taxes |
15,769 | 13,962 | 31,811 | 27,433 | ||||||||||||
Insurance |
2,260 | 1,998 | 4,490 | 4,049 | ||||||||||||
Construction management |
596 | 11,199 | 789 | 12,936 | ||||||||||||
Depreciation and amortization |
89,000 | 76,848 | 172,995 | 150,766 | ||||||||||||
General and administrative |
15,109 | 14,077 | 29,359 | 26,482 | ||||||||||||
Transactions |
4,608 | 740 | 5,285 | 1,421 | ||||||||||||
Other |
337 | | 337 | 90 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
215,255 | 191,161 | 412,487 | 367,237 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating income |
88,449 | 76,720 | 174,365 | 151,385 | ||||||||||||
Other Income (Expenses): |
||||||||||||||||
Equity in earnings of unconsolidated joint ventures |
3,493 | 1,058 | 4,882 | 2,266 | ||||||||||||
Interest and other income |
1,216 | 380 | 1,925 | 644 | ||||||||||||
Interest expense |
(37,681 | ) | (39,334 | ) | (75,711 | ) | (75,416 | ) | ||||||||
Tax expense |
(1,206 | ) | (233 | ) | (1,927 | ) | (661 | ) | ||||||||
Loss from early extinguishment of debt |
(303 | ) | (363 | ) | (303 | ) | (978 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Income |
53,968 | 38,228 | 103,231 | 77,240 | ||||||||||||
Net income attributable to noncontrolling interests |
(1,634 | ) | (1,525 | ) | (2,855 | ) | (3,035 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Income Attributable to Digital Realty Trust, Inc. |
52,334 | 36,703 | 100,376 | 74,205 | ||||||||||||
Preferred stock dividends |
(10,313 | ) | (4,713 | ) | (19,144 | ) | (11,235 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Income Available to Common Stockholders |
$ | 42,021 | $ | 31,990 | $ | 81,232 | $ | 62,970 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income per share available to common stockholders: |
||||||||||||||||
Basic |
$ | 0.38 | $ | 0.33 | $ | 0.75 | $ | 0.67 | ||||||||
Diluted |
$ | 0.38 | $ | 0.33 | $ | 0.75 | $ | 0.66 | ||||||||
Weighted average shares outstanding: |
||||||||||||||||
Basic |
109,761,017 | 96,295,585 | 108,430,437 | 93,875,415 | ||||||||||||
Diluted |
110,166,082 | 97,511,811 | 108,809,574 | 95,012,965 |
9
Digital Realty Trust, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
June 30, 2012 |
December 31, 2011 |
|||||||
(unaudited) | ||||||||
ASSETS |
||||||||
Investments in real estate |
||||||||
Properties: |
||||||||
Land |
$ | 596,771 | $ | 555,113 | ||||
Acquired ground leases |
6,103 | 6,214 | ||||||
Buildings and improvements |
5,838,885 | 5,253,754 | ||||||
Tenant improvements |
344,215 | 303,502 | ||||||
|
|
|
|
|||||
Total investments in properties |
6,785,974 | 6,118,583 | ||||||
Accumulated depreciation and amortization |
(1,033,128 | ) | (900,044 | ) | ||||
|
|
|
|
|||||
Net investments in properties |
5,752,846 | 5,218,539 | ||||||
Investment in unconsolidated joint ventures |
42,952 | 23,976 | ||||||
|
|
|
|
|||||
Net investments in real estate |
5,795,798 | 5,242,515 | ||||||
Cash and cash equivalents |
47,777 | 40,631 | ||||||
Accounts and other receivables, net |
96,609 | 90,580 | ||||||
Deferred rent |
279,971 | 246,815 | ||||||
Acquired above market leases, net |
25,367 | 29,701 | ||||||
Acquired in place lease value and deferred leasing costs, net |
370,179 | 335,381 | ||||||
Deferred financing costs, net |
31,024 | 29,849 | ||||||
Restricted cash |
35,322 | 55,165 | ||||||
Other assets |
35,066 | 27,929 | ||||||
|
|
|
|
|||||
Total Assets |
$ | 6,717,113 | $ | 6,098,566 | ||||
|
|
|
|
|||||
LIABILITIES AND EQUITY |
||||||||
Global revolving credit facility |
$ | 324,476 | $ | 275,106 | ||||
Unsecured term loan |
520,942 | | ||||||
Unsecured senior notes, net of discount |
1,441,569 | 1,441,072 | ||||||
Exchangeable senior debentures |
266,400 | 266,400 | ||||||
Mortgage loans, net of premiums |
846,825 | 947,132 | ||||||
Other secured loan |
| 10,500 | ||||||
Accounts payable and other accrued liabilities |
372,974 | 315,133 | ||||||
Accrued dividends and distributions |
| 75,455 | ||||||
Acquired below market leases, net |
112,891 | 85,819 | ||||||
Security deposits and prepaid rents |
92,852 | 101,538 | ||||||
|
|
|
|
|||||
Total Liabilities |
3,978,929 | 3,518,155 | ||||||
|
|
|
|
|||||
Equity: |
||||||||
Stockholders equity |
2,687,964 | 2,522,917 | ||||||
Noncontrolling interests |
50,220 | 57,494 | ||||||
|
|
|
|
|||||
Total Equity |
2,738,184 | 2,580,411 | ||||||
|
|
|
|
|||||
Total Liabilities and Equity |
$ | 6,717,113 | $ | 6,098,566 | ||||
|
|
|
|
10
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 | Six Months Ended | Year Ended | ||||||||||||||||||||||
June 30, 2012 |
March 31, 2012 |
June 30, 2011 |
June 30, 2012 |
June 30, 2011 |
December 31, 2011 |
|||||||||||||||||||
Net income available to common stockholders |
$ | 42,021 | $ | 39,211 | $ | 31,990 | $ | 81,232 | $ | 62,970 | $ | 130,868 | ||||||||||||
Adjustments: |
||||||||||||||||||||||||
Noncontrolling interests in operating partnership |
1,661 | 1,586 | 1,582 | 3,247 | 3,234 | 6,185 | ||||||||||||||||||
Real estate related depreciation and amortization (1) |
88,186 | 82,993 | 76,405 | 171,179 | 149,911 | 308,547 | ||||||||||||||||||
Real estate related depreciation and amortization related to investment in unconsolidated joint ventures |
866 | 905 | 893 | 1,771 | 1,785 | 3,688 | ||||||||||||||||||
Gain on sale of assets held in unconsolidated joint venture |
(2,325 | ) | | | (2,325 | ) | | | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
FFO available to common stockholders and unitholders (2) |
$ | 130,409 | $ | 124,695 | $ | 110,870 | $ | 255,104 | $ | 217,900 | $ | 449,288 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Basic FFO per share and unit |
$ | 1.14 | $ | 1.12 | $ | 1.10 | $ | 2.26 | $ | 2.21 | $ | 4.36 | ||||||||||||
Diluted FFO per share and unit (2) |
$ | 1.09 | $ | 1.06 | $ | 1.02 | $ | 2.15 | $ | 2.03 | $ | 4.06 | ||||||||||||
Weighted average common stock and units outstanding |
||||||||||||||||||||||||
Basic |
114,100 | 111,433 | 101,056 | 112,767 | 98,699 | 103,053 | ||||||||||||||||||
Diluted (2) |
125,824 | 125,482 | 117,845 | 125,588 | 116,744 | 119,404 | ||||||||||||||||||
(1) Real estate related depreciation and amortization was computed as follows: |
||||||||||||||||||||||||
Depreciation and amortization per income statement |
89,000 | 83,995 | 76,848 | 172,995 | 150,766 | 310,425 | ||||||||||||||||||
Non-real estate depreciation |
(814 | ) | (1,002 | ) | (443 | ) | (1,816 | ) | (855 | ) | (1,878 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
$ | 88,186 | $ | 82,993 | $ | 76,405 | $ | 171,179 | $ | 149,911 | 308,547 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(2) | At June 30, 2012, we had 6,964 series D convertible preferred shares outstanding that were convertible into 4,374 common shares on a weighted average basis for the three months ended June 30, 2012. For the three months ended June 30, 2012, we have excluded the effect of dilutive series E and series F preferred stock, that may be converted upon the occurrence of specified change in control transactions as described in the articles supplementary governing the series E and series F preferred stock, which we consider highly improbable; if included, the dilutive effect for the three months ended June 30, 2012 would be 6,470 shares. In addition, we had a balance of $266,400 of 5.50% exchangeable senior debentures due 2029 that were exchangeable for 6,456 common shares on a weighted average basis for the three months ended June 30, 2012. See below for calculations of diluted FFO available to common stockholders and unitholders and weighted average common stock and units outstanding. |
Three Months Ended | Six Months Ended | Year Ended | ||||||||||||||||||||||
June 30, 2012 |
March 31, 2012 |
June 30, 2011 |
June 30, 2012 |
June 30, 2011 |
December 31, 2011 |
|||||||||||||||||||
FFO available to common stockholders and unitholders |
$ | 130,409 | $ | 124,695 | $ | 110,870 | $ | 255,104 | $ | 217,900 | $ | 449,288 | ||||||||||||
Add: Series C convertible preferred dividends |
| 1,402 | 1,441 | 1,402 | 3,273 | 6,077 | ||||||||||||||||||
Add: Series D convertible preferred dividends |
2,394 | 2,398 | 3,272 | 4,792 | 7,962 | 13,394 | ||||||||||||||||||
Add: 5.50% exchangeable senior debentures interest expense |
4,050 | 4,050 | 4,050 | 8,100 | 8,100 | 16,200 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
FFO available to common stockholders and unitholders - diluted |
$ | 136,853 | $ | 132,545 | $ | 119,633 | $ | 269,398 | $ | 237,235 | 484,959 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Weighted average common stock and units outstanding |
114,100 | 111,433 | 101,056 | 112,767 | 98,699 | 103,053 | ||||||||||||||||||
Add: Effect of dilutive securities (excluding series C and D convertible preferred stock and 5.50% exchangeable senior debentures) |
405 | 485 | 1,216 | 379 | 1,138 | 764 | ||||||||||||||||||
Add: Effect of dilutive series C convertible preferred stock |
489 | 2,785 | 2,865 | 1,637 | 3,256 | 3,017 | ||||||||||||||||||
Add: Effect of dilutive series D convertible preferred stock |
4,374 | 4,337 | 6,419 | 4,356 | 7,371 | 6,242 | ||||||||||||||||||
Add: Effect of dilutive 5.50% exchangeable senior debentures |
6,456 | 6,442 | 6,289 | 6,449 | 6,280 | 6,328 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Weighted average common stock and units outstanding - diluted |
125,824 | 125,482 | 117,845 | 125,588 | 116,744 | 119,404 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
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 | Six Months Ended | Year Ended | ||||||||||||||||||||||
June 30, 2012 |
March 31, 2012 |
June 30, 2011 |
June 30, 2012 |
June 30, 2011 |
December 31, 2011 |
|||||||||||||||||||
FFO available to common stockholders and unitholders - diluted |
$ | 136,853 | $ | 132,545 | $ | 119,633 | $ | 269,398 | $ | 237,235 | $ | 484,959 | ||||||||||||
Termination fees and other non-core revenues (3) |
(7,824 | ) | | (5 | ) | (7,824 | ) | (300 | ) | (2,953 | ) | |||||||||||||
Significant transaction expenses |
4,608 | 677 | 740 | 5,285 | 1,421 | 5,654 | ||||||||||||||||||
Loss from early extinguishment of debt |
303 | | 363 | 303 | 978 | 1,088 | ||||||||||||||||||
Other non-core expense adjustments (4) |
337 | | | 337 | 174 | 174 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
CFFO available to common stockholders and unitholders - diluted |
$ | 134,277 | $ | 133,222 | $ | 120,731 | $ | 267,499 | $ | 239,508 | $ | 488,922 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Diluted CFFO per share and unit |
$ | 1.07 | $ | 1.06 | $ | 1.02 | $ | 2.13 | $ | 2.05 | $ | 4.09 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(3) | Includes one-time fees, proceeds and certain other adjustments that are not core to our business. |
(4) | Includes reversal of accruals and certain other adjustments that are not core to our business. |
11
Note Regarding Funds From Operations
Digital Realty calculates 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) available to common stockholders and unitholders (computed in accordance with U.S. GAAP), excluding gains (or losses) from sales of property, impairment charges, 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. Digital Realty also believes 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 financial condition and 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.
Core Funds from Operations
We present core funds from operations, or CFFO, as a supplemental operating measure because, in excluding certain items that do not reflect ongoing revenue or expense streams, it provides a performance measure that, when compared year over year, captures trends in our core business operating performance. We calculate CFFO by adding to or subtracting from FFO (i) termination fees and other non-core revenues, (ii) significant transaction expenses, (iii) loss from early extinguishment of debt, (iv) costs on redemption of preferred stock, (v) significant property tax adjustments, net and (vi) other non-core expense adjustments. Because certain of these adjustments have a real economic impact on our financial condition and results from operations, the utility of CFFO as a measure of our performance is limited. Other REITs may not calculate CFFO in a consistent manner. Accordingly, our CFFO may not be comparable to other REITs CFFO. CFFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.
12
Exhibit 99.2
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
PAGE | ||||
Corporate Data |
||||
Corporate Information |
4 | |||
Ownership Structure |
6 | |||
Consolidated Financial Information |
||||
Key Quarterly Financial Data |
7 | |||
Consolidated Balance Sheets |
8 | |||
Consolidated Quarterly Statements of Operations |
9 | |||
Funds From Operations and Adjusted Funds From Operations |
10 | |||
Reconciliation of Earnings Before Interest, Taxes, Depreciation and Amortization and Financial Ratios |
11 | |||
Same Store and New Properties Consolidated Quarterly Statements of Operations |
12 | |||
Same Store Operating Trend Summary |
13 | |||
Consolidated Debt Analysis and Global Revolving Credit Facility |
14 | |||
Debt Maturities |
15 | |||
Debt Analysis & Covenant Compliance |
16 | |||
Portfolio Data |
||||
Portfolio Summary |
17 | |||
Properties Acquired |
18 | |||
Occupancy Analysis |
19 | |||
Major Tenants |
22 | |||
Lease Expirations and Lease Distribution |
23 | |||
Lease Expirations - By Product Type |
24 | |||
Summary of Leasing Activity - Signed |
25 | |||
Summary of Leasing Activity - Commenced |
26 | |||
Historical Capital Expenditures |
27 | |||
Construction Activity Report |
28 | |||
Construction Projects in Progress and Total Estimated Direct Cost |
29 | |||
Definitions |
||||
Management Statements on Non-GAAP Supplemental Measures |
30 |
Page 2
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Statement Regarding Forward-Looking Statements
This supplemental package contains forward-looking statements within the meaning of the federal securities laws, including information related to trends, leasing expectations, weighted average lease terms, the exercise of lease extensions, lease expirations, debt maturities, annualized rent at expiration of leases, the effect new leases and increases in rental rates will have on our rental revenue, our credit ratings, construction and redevelopment activity, projected construction costs and other forward-looking financial data. Such statements are based on managements beliefs and assumptions made based on information currently available to management. 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. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Some of the risks and uncertainties that may cause our actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements include, among others, the following:
| the impact of the recent deterioration in global economic, credit and market conditions, including the downgrade of the U.S. governments credit rating; |
| current local economic conditions in our geographic markets; |
| decreases in information technology spending, including as a result of economic slowdowns or recession; |
| adverse economic or real estate developments in our industry or the industry sectors that we sell to (including risks relating to decreasing real estate valuations and impairment charges); |
| our dependence upon significant tenants; |
| bankruptcy or insolvency of a major tenant or a significant number of smaller tenants; |
| defaults on or non-renewal of leases by tenants; |
| our failure to obtain necessary debt and equity financing; |
| increased interest rates and operating costs; |
| risks associated with using debt to fund our business activities, including re-financing and interest rate risks, our failure to repay debt when due, adverse changes in our credit ratings or our breach of covenants or other terms contained in our loan facilities and agreements; |
| financial market fluctuations; |
| changes in foreign currency exchange rates; |
| our inability to manage our growth effectively; |
| difficulty acquiring or operating properties in foreign jurisdictions; |
| our failure to successfully integrate and operate acquired or redeveloped properties or businesses; |
| risks related to joint venture investments, including as a result of our lack of control of such investments; |
| delays or unexpected costs in development or redevelopment of properties; |
| decreased rental rates or increased vacancy rates; |
| increased competition or available supply of data center space; |
| our inability to successfully develop and lease new properties and space held for redevelopment; |
| difficulties in identifying properties to acquire and completing acquisitions; |
| our inability to acquire off-market properties; |
| our inability to comply with the rules and regulations applicable to reporting companies; |
| our failure to maintain our status as a REIT; |
| possible adverse changes to tax laws; |
| restrictions on our ability to engage in certain business activities; |
| environmental uncertainties and risks related to natural disasters; |
| losses in excess of our insurance coverage; |
| changes in foreign laws and regulations, including those related to taxation and real estate ownership and operation; and |
| changes in local, state and federal regulatory requirements, including changes in real estate and zoning laws and increases in real property tax rates. |
The risks included here are not exhaustive, and additional factors could adversely affect our business and financial performance. We discussed a number of additional material risks in our annual report on Form 10-K for the year ended December 31, 2011, and other filings with the Securities and Exchange Commission. Those risks continue to be relevant to our performance and financial condition. Moreover, we operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We expressly disclaim any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise.
Page 3
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Corporate Information
Corporate Profile
Digital Realty Trust, Inc. owns, acquires, redevelops, develops and manages technology-related real estate. The Company is focused on providing Turn-Key FlexSM and Powered Base Building® datacenter solutions for domestic and international tenants across a variety of industry verticals ranging from information technology and Internet enterprises, to manufacturing and financial services. As of June 30, 2012, the Companys 105 properties, excluding three properties held as investments in unconsolidated joint ventures, contain applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise datacenter tenants. Comprising approximately 20.1 million net rentable square feet, including approximately 2.2 million square feet of space held for redevelopment, Digital Realtys portfolio is located throughout North America, Europe, Asia and Australia. For additional information, please visit the Companys website at www.digitalrealty.com.
Corporate Headquarters
Four Embarcadero Center, Suite 3200
San Francisco, California 94111
Telephone: (415) 738-6500
Facsimile: (415) 738-6501
Web site: www.digitalrealty.com
Senior Management
Michael F. Foust: Chief Executive Officer
A. William Stein: Chief Financial Officer and Chief Investment Officer
Scott E. Peterson: Chief Acquisitions Officer
David J. Caron: Senior Vice President, Portfolio Management
Investor Relations
To request an Investor Relations package or be added to our e-mail distribution list, please visit our website:
www.digitalrealty.com | (Proceed to Information Request in the Investor Relations section) |
Analyst Coverage
Bank of America Merrill Lynch | Barclays Capital | Canaccord Genuity | Cantor Fitzgerald | Citigroup | ||||
James Feldman | Ross Smotrich | Greg Miller | Evan Smith | Michael Bilerman | ||||
(646) 855-5808 | (212) 526-2306 | (212) 389-8128 | (212) 915-1220 | (212) 816-1685 | ||||
Ji Zhang | Eric Z. Chu | Emmanuel Korchman | ||||||
(646) 855-2926 | (212) 389-8129 | (212) 816-1382 | ||||||
Deutsche Bank | Evercore | Green Street | ISI | Jefferies | ||||
John Perry | Johnathan Schildkraut | Lukas Hartwich | Steve Sakwa | Omotayo Okusanya | ||||
(212) 250-4912 | (212) 497-0864 | (949) 640-8780 | (212) 446-9462 | (212) 336-7076 | ||||
Vincent Chao | Robert Gutman | George Auerbach | ||||||
(212) 250-6799 | (212) 497-0877 | (212) 446-9459 | ||||||
JMP Securities | KeyBanc Capital Markets | Macquarie | Morgan Joseph TriArtisan | Morgan Stanley | ||||
William C. Marks | Jordan Sadler | Rob Stevenson | Ilya Grozovsky | Paul Morgan | ||||
(415) 835-8944 | (917) 368-2280 | (212) 231-8068 | (212) 218-3856 | (415) 576-2627 | ||||
Mitch Germain | Craig Mailman | Nicolas Yulico | Chris Caton | |||||
(212) 906-3546 | (917) 368-2316 | (212) 231-8028 | (415) 576-2637 | |||||
Raymond James | RBC Capital Markets | Stifel Nicolaus | UBS | |||||
Paul D. Puryear | Dave Rodgers | Todd Weller | Ross Nussbaum | |||||
(727) 567-2253 | (440) 715-2647 | (443) 224-1305 | (212) 713-2484 | |||||
William A. Crow | Jonathan Atkin | |||||||
(727) 567-2594 | (415) 633-8589 | |||||||
Mike Carroll | ||||||||
(440) 715-2649 |
This Supplemental Operating and Financial Data package supplements the information provided in our quarterly and annual reports filed with the Securities and Exchange Commission. Additional information about us and our properties is also available at our website www.digitalrealty.com.
Page 4
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Corporate Information
Stock Listing Information
The stock of Digital Realty Trust, Inc. is traded primarily on the New York Stock Exchange under the following symbols:
Common Stock: | DLR | |||
Series E Preferred Stock: | DLRPRE | |||
Series F Preferred Stock: | DLRPRF |
Note that symbols may vary by stock quote provider.
Credit Ratings
Standard & Poors | ||||
Corporate Credit Rating | BBB | (Stable Outlook) | ||
Preferred Stock | BB+ | |||
Moodys | ||||
Issuer Rating | Baa2 | (Stable Outlook) | ||
Preferred Stock | Baa3 | |||
Fitch | ||||
Issuer Default Rating | BBB | (Stable Outlook) | ||
Preferred Stock | BB+ |
These credit ratings may not reflect the potential impact of risks relating to the structure or trading of the Companys securities and are provided solely for informational purposes. Credit ratings are not recommendations to buy, sell or hold any security, and may be revised or withdrawn at any time by the issuing organization in its sole discretion. The Company does not undertake any obligation to maintain the ratings or to advise of any change in ratings. Each agencys rating should be evaluated independently of any other agencys rating. An explanation of the significance of the ratings may be obtained from each of the rating agencies.
Common Stock Price Performance
The following summarizes recent activity of Digital Realtys common stock (DLR):
2nd Quarter 2012 |
1st Quarter 2012 |
4th Quarter 2011 |
3rd Quarter 2011 |
2nd Quarter 2011 |
1st Quarter 2011 |
|||||||||||||||||||
High Price * |
$ | 76.04 | $ | 74.04 | $ | 67.83 | $ | 64.09 | $ | 64.25 | $ | 59.34 | ||||||||||||
Low Price * |
$ | 67.84 | $ | 65.00 | $ | 51.75 | $ | 50.63 | $ | 56.34 | $ | 50.63 | ||||||||||||
Closing Price, end of quarter * |
$ | 75.07 | $ | 73.97 | $ | 66.67 | $ | 55.16 | $ | 61.78 | $ | 58.14 | ||||||||||||
Average daily trading volume * |
1,073,521 | 1,026,947 | 1,259,124 | 1,198,958 | 962,400 | 1,192,245 | ||||||||||||||||||
Indicated dividend per common share ** |
$ | 2.920 | $ | 2.920 | $ | 2.720 | $ | 2.720 | $ | 2.720 | $ | 2.720 | ||||||||||||
Closing annual dividend yield, end of quarter |
3.9 | % | 3.9 | % | 4.1 | % | 4.9 | % | 4.4 | % | 4.7 | % | ||||||||||||
Closing shares and units outstanding, end of quarter *** |
115,050,528 | 112,215,683 | 110,975,409 | 109,127,550 | 103,789,573 | 97,555,237 | ||||||||||||||||||
Closing market value of shares and units outstanding (thousands), end of quarter |
$ | 8,636,843 | $ | 8,300,594 | $ | 7,398,731 | $ | 6,019,476 | $ | 6,412,120 | $ | 5,671,861 |
* | New York Stock Exchange trades only. |
** | On an annual basis. |
*** | As of June 30, 2012, the total number of shares and units includes 110,268,388 shares of common stock, 3,235,814 common units held by third parties and 1,546,326 common units, vested and unvested long-term incentive units and vested class C units held by officers and directors, and excludes all unexercised common stock options and all shares potentially issuable upon exchange of our 5.50% exchangeable senior debentures due 2029 or upon conversion of our series D cumulative convertible preferred stock or upon conversion of our series E and series F cumulative redeemable preferred stock upon certain change of control transactions. On April 17, 2012, we converted all outstanding shares of our series C preferred stock into shares of our common stock at a conversion rate of 0.5480 shares of common stock per $25.00 liquidation preference of series C preferred stock. |
This Supplemental Operating and Financial Data package supplements the information provided in our quarterly and annual reports filed with the Securities and Exchange Commission. Additional information about us and our properties is also available at our website www.digitalrealty.com.
Page 5
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Partner |
# of Units (2) | % Ownership | ||||||
Digital Realty Trust, Inc. |
110,268,388 | 95.8 | % | |||||
Cambay Tele.com, LLC (3) |
3,235,814 | 2.8 | % | |||||
Directors, Executive Officers and Others |
1,546,326 | 1.4 | % | |||||
|
|
|
|
|||||
Total |
115,050,528 | 100.0 | % | |||||
|
|
|
|
(1) | Reflects limited partnership interests held by our officers and directors in the form of common units and vested and unvested long-term incentive units and excludes all unexercised common stock options. |
(2) | The total number of shares and units includes 110,268,388 shares of common stock, 3,235,814 common units held by third parties and 1,546,326 common units, vested and unvested long-term incentive units and vested class C units held by officers and directors, and excludes all unexercised common stock options and all shares potentially issuable upon exchange of our 5.50% exchangeable senior debentures due 2029 or upon conversion of our series D cumulative convertible preferred stock or upon conversion of our series E and series F cumulative redeemable preferred stock upon certain change of control transactions. On April 17, 2012, we converted all outstanding shares of our series C preferred stock into shares of our common stock at a conversion rate of 0.5480 shares of common stock per $25.00 liquidation preference of series C preferred stock. |
(3) | This third-party contributor received the common units (along with cash and our operating partnerships assumption of debt) in exchange for their interests in 200 Paul Avenue 1-4, 1100 Space Park Drive, the eXchange colocation business and other specified assets and liabilities. Includes 409,913 common units held by the members of Cambay Tele.com, LLC. |
Page 6
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Key Quarterly Financial Data
(Unaudited and dollars in thousands, except per share data)
30-Jun-12 | 31-Mar-12 | 31-Dec-11 | 30-Sep-11 | 30-Jun-11 | 31-Mar-11 | |||||||||||||||||||
Shares and Units at End of Quarter |
||||||||||||||||||||||||
Common shares outstanding |
110,268,388 | 107,342,049 | 106,039,279 | 104,102,878 | 98,754,727 | 92,078,429 | ||||||||||||||||||
Common units outstanding |
4,782,140 | 4,873,634 | 4,936,130 | 5,024,672 | 5,034,846 | 5,476,808 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total shares and operating partnership units |
115,050,528 | 112,215,683 | 110,975,409 | 109,127,550 | 103,789,573 | 97,555,237 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Enterprise Value |
||||||||||||||||||||||||
Market value of common equity (1) |
$ | 8,636,843 | $ | 8,300,594 | $ | 7,398,731 | $ | 6,019,476 | $ | 6,412,120 | $ | 5,671,861 | ||||||||||||
Liquidation value of preferred equity |
644,096 | 590,081 | 590,085 | 636,312 | 369,715 | 508,619 | ||||||||||||||||||
Total debt at balance sheet carrying value |
3,400,212 | 3,271,848 | 2,940,210 | 2,797,040 | 3,067,577 | 3,055,429 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total enterprise value |
$ | 12,681,151 | $ | 12,162,523 | $ | 10,929,026 | $ | 9,452,828 | $ | 9,849,412 | $ | 9,235,909 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total debt/Total enterprise value |
26.8 | % | 26.9 | % | 26.9 | % | 29.6 | % | 31.1 | % | 33.1 | % | ||||||||||||
Selected Balance Sheet Data |
||||||||||||||||||||||||
Investments in real estate (before depreciation) |
$ | 6,828,926 | $ | 6,511,710 | $ | 6,142,559 | $ | 5,839,696 | $ | 5,634,381 | $ | 5,455,314 | ||||||||||||
Total assets |
6,717,113 | 6,418,061 | 6,098,566 | 5,826,412 | 5,658,405 | 5,537,345 | ||||||||||||||||||
Total liabilities |
3,978,929 | 3,785,077 | 3,518,155 | 3,249,532 | 3,524,591 | 3,498,272 | ||||||||||||||||||
Selected Operating Data |
||||||||||||||||||||||||
Total operating revenues |
$ | 303,704 | $ | 283,148 | $ | 270,612 | $ | 273,476 | $ | 267,881 | $ | 250,741 | ||||||||||||
Total operating expenses |
215,255 | 197,232 | 189,313 | 201,850 | 191,161 | 176,076 | ||||||||||||||||||
Interest expense |
37,681 | 38,030 | 36,856 | 37,078 | 39,334 | 36,082 | ||||||||||||||||||
Net income |
53,968 | 49,263 | 47,197 | 37,689 | 38,228 | 39,012 | ||||||||||||||||||
Net income available to common stockholders |
42,021 | 39,211 | 35,990 | 31,908 | 31,990 | 30,980 | ||||||||||||||||||
Financial Ratios |
||||||||||||||||||||||||
EBITDA (2) |
$ | 170,211 | $ | 161,957 | $ | 152,398 | $ | 148,500 | $ | 148,768 | $ | 142,023 | ||||||||||||
Adjusted EBITDA (3) |
$ | 182,158 | $ | 172,009 | $ | 163,605 | $ | 154,281 | $ | 155,006 | $ | 150,055 | ||||||||||||
Cash interest expense (4) |
$ | 27,447 | $ | 53,876 | $ | 25,239 | $ | 54,107 | $ | 27,349 | $ | 45,208 | ||||||||||||
Fixed charges (5) |
$ | 42,646 | $ | 66,477 | $ | 38,794 | $ | 62,280 | $ | 35,750 | $ | 55,630 | ||||||||||||
Debt service coverage ratio (6) |
6.6 | x | 3.2 | x | 6.5 | x | 2.9 | x | 5.7 | x | 3.3 | x | ||||||||||||
Fixed charge coverage ratio (7) |
4.3 | x | 2.6 | x | 4.2 | x | 2.5 | x | 4.3 | x | 2.7 | x | ||||||||||||
Profitability Measures |
||||||||||||||||||||||||
Net income per common share - basic |
$ | 0.38 | $ | 0.37 | $ | 0.34 | $ | 0.32 | $ | 0.33 | $ | 0.34 | ||||||||||||
Net income per common share - diluted |
$ | 0.38 | $ | 0.36 | $ | 0.34 | $ | 0.31 | $ | 0.33 | $ | 0.33 | ||||||||||||
Funds From Operations (FFO) per diluted share and unit (8) |
$ | 1.09 | $ | 1.06 | $ | 1.02 | $ | 1.01 | $ | 1.02 | $ | 1.02 | ||||||||||||
Adjusted Funds From Operations (AFFO) per diluted share and unit (9) |
$ | 0.86 | $ | 0.86 | $ | 0.82 | $ | 0.82 | $ | 0.85 | $ | 0.90 | ||||||||||||
Dividends per share and common unit |
$ | 0.73 | $ | 0.73 | $ | 0.68 | $ | 0.68 | $ | 0.68 | $ | 0.68 | ||||||||||||
Diluted FFO payout ratio (10) |
67.1 | % | 69.1 | % | 66.6 | % | 67.4 | % | 67.0 | % | 66.9 | % | ||||||||||||
Diluted AFFO payout ratio (9)(11) |
85.4 | % | 84.6 | % | 83.0 | % | 82.6 | % | 80.1 | % | 76.0 | % | ||||||||||||
Portfolio Statistics |
||||||||||||||||||||||||
Buildings |
155 | 148 | 140 | 136 | 134 | 133 | ||||||||||||||||||
Properties |
105 | 102 | 101 | 98 | 96 | 96 | ||||||||||||||||||
Net rentable square feet, excluding redevelopment space |
17,881,857 | 16,923,054 | 15,908,059 | 15,262,859 | 14,967,288 | 14,628,267 | ||||||||||||||||||
Square feet held for redevelopment (12) |
2,177,144 | 2,189,203 | 2,384,955 | 2,126,131 | 2,107,693 | 2,236,745 | ||||||||||||||||||
Occupancy at end of quarter (13) |
93.5 | % | 94.8 | % | 94.8 | % | 93.7 | % | 93.9 | % | 93.5 | % | ||||||||||||
Weighted average remaining lease term (years) (14) |
7.0 | 7.0 | 7.0 | 7.0 | 6.8 | 6.9 | ||||||||||||||||||
Same store occupancy at end of quarter (13)(15) |
92.9 | % | 94.4 | % | 94.6 | % | 93.7 | % | 93.9 | % | 93.5 | % |
(1) | The market value of common equity is based on the closing stock price at the end of the quarter and assumes 100% redemption of the limited partnership units in our operating partnership, including common units and vested and unvested long-term incentive units (including vested class C units), for shares of our common stock. Excludes shares issuable with respect to stock options that have been granted but have not yet been exercised, and also excludes all shares potentially issuable upon exchange of our 5.50% exchangeable senior debentures due 2029 or upon conversion of our series D cumulative convertible preferred stock or upon conversion of our series E and series F cumulative redeemable preferred stock upon certain change of control transactions. On April 17, 2012, we converted all outstanding shares of our series C preferred stock into shares of our common stock at a conversion rate of 0.5480 shares of common stock per $25.00 liquidation preference of series C preferred stock. |
(2) | EBITDA is calculated as earnings before interest, taxes, depreciation and amortization. For a discussion of EBITDA, see page 30. For a reconciliation of net income available to common stockholders to EBITDA, see page 11. |
(3) | Adjusted EBITDA is EBITDA adjusted for preferred dividends and non-controlling interests. For a discussion of Adjusted EBITDA, see page 30. For a reconciliation of net income available to common stockholders to Adjusted EBITDA, see page 11. |
(4) | Cash interest expense is interest expense per our statement of operations less amortization of debt discount and deferred financing fees and includes interest that we capitalized. For a reconciliation of GAAP interest expense to cash interest expense, see page 11. |
(5) | Fixed charges consist of cash interest expense, scheduled debt principal payments and preferred dividends. |
(6) | Debt service coverage ratio is Adjusted EBITDA divided by cash interest expense. |
(7) | Fixed charge coverage ratio is Adjusted EBITDA divided by fixed charges. |
(8) | For a definition and discussion of FFO, see page 30. For a reconciliation of net income available to common stockholders to FFO, see page 10. |
(9) | All periods presented include internal leasing commissions, the amounts of which have historically been included in capitalized leasing commissions and were previously excluded from recurring capital expenditures. For a definition and discussion of AFFO, see page 30. For a reconciliation of FFO to AFFO, see page 10. |
(10) | Diluted FFO payout ratio is dividends declared per common share and unit divided by diluted FFO per share and unit. |
(11) | Diluted AFFO payout ratio is dividends declared per common share and unit divided by diluted AFFO per share and unit. |
(12) | Redevelopment space requires significant capital investment in order to develop data center facilities that are ready for use. Most often this is shell space. However, in certain circumstances this may include partially built datacenter space that was not completed by previous ownership and requires a large capital investment in order to build out the space. |
(13) | Occupancy and same store occupancy exclude space held for redevelopment. For some of our properties, we calculate occupancy based on factors in addition to contractually leased square feet, including available power, required support space and common area. |
(14) | Weighted average remaining lease term excludes renewal options and is weighted by net rentable square feet. |
(15) | Same store properties were acquired before December 31, 2010. |
Page 7
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Consolidated Balance Sheets
(Dollars in thousands, except per share data)
June 30, 2012 | December 31, 2011 | |||||||
(unaudited) | ||||||||
ASSETS |
||||||||
Investments in real estate |
||||||||
Land |
$ | 596,771 | $ | 555,113 | ||||
Acquired ground leases |
6,103 | 6,214 | ||||||
Buildings and improvements |
5,838,885 | 5,253,754 | ||||||
Tenant improvements |
344,215 | 303,502 | ||||||
|
|
|
|
|||||
Investments in real estate |
6,785,974 | 6,118,583 | ||||||
Accumulated depreciation and amortization |
(1,033,128 | ) | (900,044 | ) | ||||
|
|
|
|
|||||
Net investments in properties |
5,752,846 | 5,218,539 | ||||||
Investment in unconsolidated joint ventures |
42,952 | 23,976 | ||||||
|
|
|
|
|||||
Net investments in real estate |
5,795,798 | 5,242,515 | ||||||
Cash and cash equivalents |
47,777 | 40,631 | ||||||
Accounts and other receivables, net of allowance for doubtful accounts of $2,624 and $2,436 as of June 30, 2012 and December 31, 2011, respectively |
96,609 | 90,580 | ||||||
Deferred rent |
279,971 | 246,815 | ||||||
Acquired above market leases, net |
25,367 | 29,701 | ||||||
Acquired in place lease value and deferred leasing costs, net |
370,179 | 335,381 | ||||||
Deferred financing costs, net |
31,024 | 29,849 | ||||||
Restricted cash |
35,322 | 55,165 | ||||||
Other assets |
35,066 | 27,929 | ||||||
|
|
|
|
|||||
Total Assets |
$ | 6,717,113 | $ | 6,098,566 | ||||
|
|
|
|
|||||
LIABILITIES AND EQUITY |
||||||||
Global revolving credit facility |
$ | 324,476 | $ | 275,106 | ||||
Unsecured term loan |
520,942 | | ||||||
Unsecured senior notes, net of discount |
1,441,569 | 1,441,072 | ||||||
Exchangeable senior debentures |
266,400 | 266,400 | ||||||
Mortgage loans, net of premiums |
846,825 | 947,132 | ||||||
Other secured loans |
| 10,500 | ||||||
Accounts payable and other accrued liabilities |
372,974 | 315,133 | ||||||
Accrued dividends and distributions |
| 75,455 | ||||||
Acquired below market leases, net |
112,891 | 85,819 | ||||||
Security deposits and prepaid rents |
92,852 | 101,538 | ||||||
|
|
|
|
|||||
Total Liabilities |
3,978,929 | 3,518,155 | ||||||
|
|
|
|
|||||
Commitments and contingencies |
| | ||||||
EQUITY: |
||||||||
Stockholders equity: |
||||||||
Preferred Stock: $0.01 par value per share, 30,000,000 shares authorized: |
||||||||
Series C Cumulative Convertible Preferred Stock, 4.375%, $0 and $128,159 liquidation preference, respectively ($25.00 per share), 0 and 5,126,364 shares issued and outstanding as of June 30, 2012 and December 31, 2011, respectively |
| 123,820 | ||||||
Series D Cumulative Convertible Preferred Stock, 5.500%, $174,096 and $174,426 liquidation preference, respectively ($25.00 per share), 6,963,848 and 6,977,055 shares issued and outstanding as of June 30, 2012 and December 31, 2011, respectively |
168,350 | 168,669 | ||||||
Series E Cumulative Redeemable Preferred Stock, 7.000%, $287,500 and $287,500 liquidation preference, respectively ($25.00 per share), 11,500,000 and 11,500,000 shares issued and outstanding as of June 30, 2012 and December 31, 2011, respectively |
277,172 | 277,292 | ||||||
Series F Cumulative Redeemable Preferred Stock, 6.625%, $182,500 and $0 liquidation preference, respectively ($25.00 per share), 7,300,000 and 0 shares issued and outstanding as of June 30, 2012 and December 31, 2011, respectively |
176,253 | | ||||||
Common Stock: $0.01 par value per share, 165,000,000 shares authorized, 110,268,388 and 106,039,279 shares issued and outstanding as of June 30, 2012 and December 31, 2011, respectively |
1,098 | 1,057 | ||||||
Additional paid-in capital |
2,687,065 | 2,496,651 | ||||||
Dividends in excess of earnings |
(566,273 | ) | (488,692 | ) | ||||
Accumulated other comprehensive income, net |
(55,701 | ) | (55,880 | ) | ||||
|
|
|
|
|||||
Total stockholders equity |
2,687,964 | 2,522,917 | ||||||
|
|
|
|
|||||
Noncontrolling interests: |
||||||||
Noncontrolling interest in operating partnership |
46,273 | 45,057 | ||||||
Noncontrolling interest in consolidated joint ventures |
3,947 | 12,437 | ||||||
|
|
|
|
|||||
Total noncontrolling interests |
50,220 | 57,494 | ||||||
|
|
|
|
|||||
Total Equity |
2,738,184 | 2,580,411 | ||||||
|
|
|
|
|||||
Total Liabilities and Equity |
$ | 6,717,113 | $ | 6,098,566 | ||||
|
|
|
|
Page 8
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Consolidated Quarterly Statements of Operations
(unaudited and in thousands, except share and per share data)
Three Months Ended | ||||||||||||||||||||||||
30-Jun-12 | 31-Mar-12 | 31-Dec-11 | 30-Sep-11 | 30-Jun-11 | 31-Mar-11 | |||||||||||||||||||
Rental |
$ | 234,923 | $ | 222,834 | $ | 214,264 | $ | 206,846 | $ | 202,806 | $ | 196,795 | ||||||||||||
Tenant reimbursements |
60,422 | 57,862 | 52,010 | 56,656 | 51,311 | 51,834 | ||||||||||||||||||
Construction management |
1,954 | 2,452 | 4,338 | 9,372 | 13,759 | 1,817 | ||||||||||||||||||
Other |
6,405 | | | 602 | 5 | 295 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total operating revenues |
303,704 | 283,148 | 270,612 | 273,476 | 267,881 | 250,741 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Rental property operating and maintenance |
87,576 | 79,845 | 81,698 | 82,164 | 72,337 | 71,723 | ||||||||||||||||||
Property taxes |
15,769 | 16,042 | 9,458 | 13,055 | 13,962 | 13,471 | ||||||||||||||||||
Insurance |
2,260 | 2,230 | 2,014 | 1,961 | 1,998 | 2,051 | ||||||||||||||||||
Construction management |
596 | 193 | 2,388 | 7,391 | 11,199 | 1,737 | ||||||||||||||||||
Depreciation and amortization |
89,000 | 83,995 | 80,612 | 79,047 | 76,848 | 73,918 | ||||||||||||||||||
General and administrative |
15,109 | 14,250 | 12,542 | 14,600 | 14,077 | 12,405 | ||||||||||||||||||
Transactions |
4,608 | 677 | 601 | 3,632 | 740 | 681 | ||||||||||||||||||
Other |
337 | | | | | 90 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total operating expenses |
215,255 | 197,232 | 189,313 | 201,850 | 191,161 | 176,076 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
88,449 | 85,916 | 81,299 | 71,626 | 76,720 | 74,665 | ||||||||||||||||||
Equity in earnings of unconsolidated joint ventures |
3,493 | 1,389 | 1,296 | 1,390 | 1,058 | 1,208 | ||||||||||||||||||
Interest and other income |
1,216 | 709 | 398 | 2,218 | 380 | 264 | ||||||||||||||||||
Interest expense |
(37,681 | ) | (38,030 | ) | (36,856 | ) | (37,078 | ) | (39,334 | ) | (36,082 | ) | ||||||||||||
Tax (expense) benefit |
(1,206 | ) | (721 | ) | 1,164 | (461 | ) | (233 | ) | (428 | ) | |||||||||||||
Loss from early extinguishment of debt |
(303 | ) | | (104 | ) | (6 | ) | (363 | ) | (615 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
53,968 | 49,263 | 47,197 | 37,689 | 38,228 | 39,012 | ||||||||||||||||||
Net income attributable to noncontrolling interests |
(1,634 | ) | (1,221 | ) | (1,481 | ) | (1,345 | ) | (1,525 | ) | (1,510 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income attributable to Digital Realty Trust, Inc. |
52,334 | 48,042 | 45,716 | 36,344 | 36,703 | 37,502 | ||||||||||||||||||
Preferred stock dividends |
(10,313 | ) | (8,831 | ) | (9,726 | ) | (4,436 | ) | (4,713 | ) | (6,522 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income available to common stockholders |
$ | 42,021 | $ | 39,211 | $ | 35,990 | $ | 31,908 | $ | 31,990 | $ | 30,980 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income per share available to common stockholders - basic |
$ | 0.38 | $ | 0.37 | $ | 0.34 | $ | 0.32 | $ | 0.33 | $ | 0.34 | ||||||||||||
Net income per share available to common stockholders - diluted |
$ | 0.38 | $ | 0.36 | $ | 0.34 | $ | 0.31 | $ | 0.33 | $ | 0.33 | ||||||||||||
Weighted-average shares outstanding - basic |
109,761,017 | 107,099,856 | 105,134,719 | 100,588,235 | 96,295,585 | 91,428,355 | ||||||||||||||||||
Weighted-average shares outstanding - diluted |
110,166,082 | 107,584,856 | 105,584,344 | 101,912,342 | 97,511,811 | 92,600,215 | ||||||||||||||||||
Weighted-average fully diluted shares and units |
114,505,563 | 111,917,822 | 110,052,443 | 105,478,907 | 102,272,613 | 98,117,454 |
Page 9
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Funds From Operations (FFO)
(unaudited and in thousands, except per share data)
Three Months Ended | ||||||||||||||||||||||||
30-Jun-12 | 31-Mar-12 | 31-Dec-11 | 30-Sep-11 | 30-Jun-11 | 31-Mar-11 | |||||||||||||||||||
Reconciliation of net income available to common stockholders to FFO (Note): |
||||||||||||||||||||||||
Net income available to common stockholders |
$ | 42,021 | $ | 39,211 | $ | 35,990 | $ | 31,908 | $ | 31,990 | $ | 30,980 | ||||||||||||
Adjustments: |
||||||||||||||||||||||||
Noncontrolling interests in operating partnership |
1,661 | 1,586 | 1,530 | 1,421 | 1,582 | 1,652 | ||||||||||||||||||
Real estate related depreciation and amortization (1) |
88,186 | 82,993 | 80,086 | 78,550 | 76,405 | 73,506 | ||||||||||||||||||
Real estate related depreciation and amortization related to investment in unconsolidated joint ventures |
866 | 905 | 985 | 918 | 893 | 892 | ||||||||||||||||||
Gain on sale of assets held in unconsolidated joint venture |
(2,325 | ) | | | | | | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
FFO available to common stockholders and unitholders |
$ | 130,409 | $ | 124,695 | $ | 118,591 | $ | 112,797 | $ | 110,870 | $ | 107,030 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
FFO per share and unit: |
||||||||||||||||||||||||
Basic |
$ | 1.14 | $ | 1.12 | $ | 1.08 | $ | 1.07 | $ | 1.10 | $ | 1.11 | ||||||||||||
Diluted (2) |
$ | 1.09 | $ | 1.06 | $ | 1.02 | $ | 1.01 | $ | 1.02 | $ | 1.02 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Weighted-average shares and units outstanding - basic |
114,100 | 111,433 | 109,603 | 105,069 | 101,056 | 96,303 | ||||||||||||||||||
Weighted-average shares and units outstanding - diluted (2) |
125,824 | 125,482 | 123,875 | 120,235 | 117,845 | 115,730 | ||||||||||||||||||
(1) Real estate related depreciation and amortization was computed as follows: |
||||||||||||||||||||||||
Depreciation and amortization per income statement |
$ | 89,000 | $ | 83,995 | $ | 80,612 | $ | 79,047 | $ | 76,848 | $ | 73,918 | ||||||||||||
Non-real estate depreciation |
(814 | ) | (1,002 | ) | (526 | ) | (497 | ) | (443 | ) | (412 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
$ | 88,186 | $ | 82,993 | $ | 80,086 | $ | 78,550 | $ | 76,405 | $ | 73,506 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(2) | At June 30, 2012, we had 6,964 series D convertible preferred shares outstanding that were convertible into 4,337 common shares on a weighted average basis for the three months ended June 30, 2012. For the three months ended June 30, 2012, we have excluded the effect of dilutive series E and series F preferred stock, that may be converted upon the occurrence of specified change in control transactions as described in the articles supplementary governing the series E and series F preferred stock, which we consider highly improbable; if included, the dilutive effect for the three months ended June 30, 2012 would be 6,470 shares. In addition, we had a balance of $266,400 of 5.50% exchangeable senior debentures due 2029 that were exchangeable for 6,456 common shares on a weighted average basis for the three months ended June 30, 2012. See below for calculations of diluted FFO available to common stockholders and unitholders and weighted average common stock and units outstanding. |
FFO available to common stockholders and unitholders |
$ | 130,409 | $ | 124,695 | $ | 118,591 | $ | 112,797 | $ | 110,870 | $ | 107,030 | ||||||||||||
Add: Series C convertible preferred dividends |
| 1,402 | 1,402 | 1,402 | 1,441 | 1,832 | ||||||||||||||||||
Add: Series D convertible preferred dividends |
2,394 | 2,398 | 2,398 | 3,034 | 3,272 | 4,690 | ||||||||||||||||||
Add: 5.50% exchangeable senior debentures interest expense |
4,050 | 4,050 | 4,050 | 4,050 | 4,050 | 4,050 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
FFO available to common stockholders and unitholders - diluted |
$ | 136,853 | $ | 132,545 | $ | 126,441 | $ | 121,283 | $ | 119,633 | $ | 117,602 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Weighted average common stock and units outstanding |
114,100 | 111,433 | 109,603 | 105,069 | 101,056 | 96,303 | ||||||||||||||||||
Add: Effect of dilutive securities (excl. series C & D convert. preferred stock & 5.50% debentures) |
405 | 485 | 450 | 410 | 1,216 | 1,172 | ||||||||||||||||||
Add: Effect of dilutive series C convertible preferred stock |
489 | 2,785 | 2,778 | 2,784 | 2,865 | 3,652 | ||||||||||||||||||
Add: Effect of dilutive series D convertible preferred stock |
4,374 | 4,337 | 4,660 | 5,604 | 6,419 | 8,333 | ||||||||||||||||||
Add: Effect of dilutive 5.50% exchangeable senior debentures |
6,456 | 6,442 | 6,384 | 6,368 | 6,289 | 6,270 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Weighted average common stock and units outstanding - diluted |
125,824 | 125,482 | 123,875 | 120,235 | 117,845 | 115,730 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Note: For a definition and discussion of FFO, see page 30.
Adjusted Funds From Operations (AFFO)
(unaudited and in thousands)
Three Months Ended | ||||||||||||||||||||||||
30-Jun-12 | 31-Mar-12 | 31-Dec-11 | 30-Sep-11 | 30-Jun-11 | 31-Mar-11 | |||||||||||||||||||
Reconciliation of FFO to AFFO (Note): |
||||||||||||||||||||||||
FFO available to common stockholders and unitholders |
$ | 130,409 | $ | 124,695 | $ | 118,591 | $ | 112,797 | $ | 110,870 | $ | 107,030 | ||||||||||||
Adjustments: |
||||||||||||||||||||||||
Non-real estate depreciation |
814 | 1,002 | 526 | 497 | 443 | 412 | ||||||||||||||||||
Amortization of deferred financing costs |
1,799 | 2,214 | 2,209 | 2,285 | 2,510 | 2,451 | ||||||||||||||||||
Amortization of debt discount |
250 | 247 | 244 | 241 | 749 | 998 | ||||||||||||||||||
Non-cash compensation |
3,775 | 3,407 | 3,167 | 3,560 | 3,739 | 2,963 | ||||||||||||||||||
Loss from early extinguishment of debt |
303 | | 104 | 6 | 363 | 615 | ||||||||||||||||||
Straight line rents |
(19,649 | ) | (15,902 | ) | (15,089 | ) | (14,166 | ) | (14,305 | ) | (12,749 | ) | ||||||||||||
Above and below market rent amortization |
(2,871 | ) | (2,239 | ) | (2,274 | ) | (1,989 | ) | (1,860 | ) | (1,814 | ) | ||||||||||||
Capitalized leasing compensation |
(3,334 | ) | (3,913 | ) | (2,610 | ) | (2,734 | ) | (2,721 | ) | (2,443 | ) | ||||||||||||
Recurring capital expenditures and tenant |
(6,128 | ) | (5,431 | ) | (4,870 | ) | (4,678 | ) | (2,026 | ) | (1,395 | ) | ||||||||||||
Capitalized leasing commissions (3) |
(4,201 | ) | (3,607 | ) | (6,401 | ) | (5,350 | ) | (6,486 | ) | (3,029 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
AFFO available to common stockholders and unitholders |
$ | 101,167 | $ | 100,473 | $ | 93,597 | $ | 90,469 | $ | 91,276 | $ | 93,039 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(3) | All periods presented include internal leasing commissions, the amounts of which have historically been included in capitalized leasing commissions and were previously excluded from recurring capital expenditures. |
Note: For a definition and discussion of AFFO, see page 30. For a reconciliation of net income available to common stockholders to FFO, see above table.
Page 10
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Reconciliation of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (1)
(unaudited and in thousands)
Three Months Ended | ||||||||||||||||||||||||
30-Jun-12 | 31-Mar-12 | 31-Dec-11 | 30-Sep-11 | 30-Jun-11 | 31-Mar-11 | |||||||||||||||||||
Net income available to common stockholders |
$ | 42,021 | $ | 39,211 | $ | 35,990 | $ | 31,908 | $ | 31,990 | $ | 30,980 | ||||||||||||
Interest |
37,681 | 38,030 | 36,856 | 37,078 | 39,334 | 36,082 | ||||||||||||||||||
Loss from early extinguishment of debt |
303 | | 104 | 6 | 363 | 615 | ||||||||||||||||||
Taxes |
1,206 | 721 | (1,164 | ) | 461 | 233 | 428 | |||||||||||||||||
Depreciation and amortization |
89,000 | 83,995 | 80,612 | 79,047 | 76,848 | 73,918 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
EBITDA |
170,211 | 161,957 | 152,398 | 148,500 | 148,768 | 142,023 | ||||||||||||||||||
Noncontrolling interests |
1,634 | 1,221 | 1,481 | 1,345 | 1,525 | 1,510 | ||||||||||||||||||
Preferred stock dividends |
10,313 | 8,831 | 9,726 | 4,436 | 4,713 | 6,522 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted EBITDA |
$ | 182,158 | $ | 172,009 | $ | 163,605 | $ | 154,281 | $ | 155,006 | $ | 150,055 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) | For the definition and discussion of EBITDA and Adjusted EBITDA, see page 30. EBITDA and adjusted EBITDA for the three months ended June 30, 2012 include a gain on sale for 700 / 750 Central Expressway, an unconsolidated joint venture, of approximately $2.3 million. Excluding this gain, EBITDA and Adjusted EBITDA would have been $167.9 million and $179.9 million, respectively, for three months ended June 30, 2012. |
Financial Ratios
(unaudited and in thousands)
30-Jun-12 | 31-Mar-12 | 31-Dec-11 | 30-Sep-11 | 30-Jun-11 | 31-Mar-11 | |||||||||||||||||||
Total GAAP interest expense |
$ | 37,681 | $ | 38,030 | $ | 36,856 | $ | 37,078 | $ | 39,334 | $ | 36,082 | ||||||||||||
Capitalized interest |
4,602 | 4,526 | 4,262 | 4,755 | 4,222 | 4,666 | ||||||||||||||||||
Change in accrued interest and other non-cash amounts |
(14,836 | ) | 11,320 | (15,879 | ) | 12,274 | (16,207 | ) | 4,460 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cash interest expense (a) |
27,447 | 53,876 | 25,239 | 54,107 | 27,349 | 45,208 | ||||||||||||||||||
Scheduled debt principal payments and preferred dividends |
15,199 | 12,601 | 13,555 | 8,173 | 8,401 | 10,422 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total fixed charges (b) |
$ | 42,646 | $ | 66,477 | $ | 38,794 | $ | 62,280 | $ | 35,750 | $ | 55,630 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Debt service coverage ratio based on GAAP interest expense (c) |
4.8 | x | 4.5 | x | 4.4 | x | 4.2 | x | 3.9 | x | 4.2 | x | ||||||||||||
Debt service coverage ratio based on cash interest expense (c) |
6.6 | x | 3.2 | x | 6.5 | x | 2.9 | x | 5.7 | x | 3.3 | x | ||||||||||||
Fixed charge coverage ratio based on GAAP interest expense (d) |
3.4 | x | 3.4 | x | 3.2 | x | 3.4 | x | 3.2 | x | 3.2 | x | ||||||||||||
Fixed charge coverage ratio based on cash interest expense (d) |
4.3 | x | 2.6 | x | 4.2 | x | 2.5 | x | 4.3 | x | 2.7 | x | ||||||||||||
Debt to total enterprise value including debt and preferred equity (e) |
26.8 | % | 26.9 | % | 26.9 | % | 29.6 | % | 31.1 | % | 33.1 | % | ||||||||||||
Debt plus preferred stock to total enterprise value including debt and preferred equity (f) |
31.9 | % | 31.8 | % | 32.3 | % | 36.3 | % | 34.9 | % | 38.6 | % | ||||||||||||
Pretax income to interest expense (g) |
2.4 | x | 2.3 | x | 2.3 | x | 2.0 | x | 2.0 | x | 2.1 | x | ||||||||||||
Net Debt to Adjusted EBITDA (h) |
4.6 | x | 4.7 | x | 4.4 | x | 4.5 | x | 4.9 | x | 5.0 | x |
(a) | Cash interest expense is interest expense less amortization of debt discount and deferred financing fees and includes interest that we capitalized. We consider cash interest expense to be a useful measure of interest as it excludes non-cash based interest expense. |
(b) | Fixed charges consist of cash interest expense, scheduled debt principal payments and preferred dividends. |
(c) | Adjusted EBITDA divided by interest expense. |
(d) | Adjusted EBITDA divided by fixed charges. |
(e) | Mortgage debt and other loans divided by mortgage debt and other loans plus the liquidation value of preferred stock and the market value of outstanding common stock and operating partnership units, assuming the redemption of operating partnership units for shares of our common stock. |
(f) | Same as (e), except numerator includes preferred stock. |
(g) | Calculated as net income, adding back interest expense and divided by GAAP interest expense. |
(h) | Calculated as total debt at balance sheet carrying value (see page 7) less unrestricted cash and cash equivalents divided by Adjusted EBITDA multiplied by four. |
Page 11
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Same Store and New Properties Consolidated Quarterly Statements of Operations
(unaudited and in thousands)
Three Months Ended | ||||||||||||||||||||||||
Same store (1) |
30-Jun-12 | 31-Mar-12 | 31-Dec-11 | 30-Sep-11 | 30-Jun-11 | 31-Mar-11 | ||||||||||||||||||
Operating Revenues: |
||||||||||||||||||||||||
Rental |
$ | 224,804 | $ | 216,061 | $ | 213,016 | $ | 206,634 | $ | 202,806 | $ | 196,795 | ||||||||||||
Tenant reimbursements - Utilities |
39,522 | 35,980 | 38,699 | 36,374 | 37,578 | 37,386 | ||||||||||||||||||
Tenant reimbursements - Other |
17,616 | 18,994 | 12,925 | 20,282 | 13,733 | 14,448 | ||||||||||||||||||
Construction management (2) |
| | | | | | ||||||||||||||||||
Other |
6,405 | | | 602 | 5 | 295 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total operating revenues |
288,347 | 271,035 | 264,640 | 263,892 | 254,122 | 248,924 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating Expenses: |
||||||||||||||||||||||||
Rental property operating and maintenance - Utilities |
41,266 | 37,905 | 38,915 | 39,714 | 41,055 | 38,427 | ||||||||||||||||||
Rental property operating and maintenance - Other |
42,106 | 39,211 | 42,129 | 42,324 | 31,785 | 33,003 | ||||||||||||||||||
Property taxes |
14,840 | 15,347 | 9,333 | 13,006 | 13,922 | 13,471 | ||||||||||||||||||
Insurance |
2,126 | 2,101 | 1,908 | 1,917 | 1,933 | 1,921 | ||||||||||||||||||
Construction management (2) |
| | | | | | ||||||||||||||||||
Depreciation and amortization |
84,645 | 80,736 | 80,332 | 79,038 | 76,848 | 73,918 | ||||||||||||||||||
General and administrative (3) |
15,109 | 14,250 | 12,542 | 14,600 | 14,077 | 12,405 | ||||||||||||||||||
Transactions (4) |
| | | | | | ||||||||||||||||||
Other |
337 | | | | | 90 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total operating expenses |
200,429 | 189,550 | 185,159 | 190,599 | 179,620 | 173,235 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
87,918 | 81,485 | 79,481 | 73,293 | 74,502 | 75,689 | ||||||||||||||||||
Other Income (Expenses): |
||||||||||||||||||||||||
Equity in earnings of unconsolidated joint ventures |
3,500 | 1,394 | 1,295 | 1,390 | 1,058 | 1,208 | ||||||||||||||||||
Interest and other income |
1,267 | 772 | 395 | 2,221 | 380 | 264 | ||||||||||||||||||
Interest expense |
(36,361 | ) | (36,841 | ) | (36,594 | ) | (37,075 | ) | (39,334 | ) | (36,082 | ) | ||||||||||||
Tax expense |
(1,083 | ) | (596 | ) | 1,288 | (378 | ) | (233 | ) | (428 | ) | |||||||||||||
Loss from early extinguishment of debt |
(303 | ) | | (104 | ) | (6 | ) | (363 | ) | (615 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
$ | 54,938 | $ | 46,214 | $ | 45,761 | $ | 39,445 | $ | 36,010 | $ | 40,036 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
New properties (1) |
||||||||||||||||||||||||
Operating Revenues: |
||||||||||||||||||||||||
Rental |
$ | 10,119 | $ | 6,773 | $ | 1,248 | $ | 212 | $ | | $ | | ||||||||||||
Tenant reimbursements - Utilities |
2,408 | 1,398 | | | | | ||||||||||||||||||
Tenant reimbursements - Other |
876 | 1,490 | 386 | | | | ||||||||||||||||||
Construction management (2) |
1,954 | 2,452 | 4,338 | 9,372 | 13,759 | 1,817 | ||||||||||||||||||
Other |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total operating revenues |
15,357 | 12,113 | 5,972 | 9,584 | 13,759 | 1,817 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating Expenses: |
||||||||||||||||||||||||
Rental property operating and maintenance - Utilities |
2,355 | 1,446 | | | | | ||||||||||||||||||
Rental property operating and maintenance - Other |
1,849 | 1,283 | 654 | 126 | (503 | ) | 293 | |||||||||||||||||
Property taxes |
929 | 695 | 125 | 49 | 40 | | ||||||||||||||||||
Insurance |
134 | 129 | 106 | 44 | 65 | 130 | ||||||||||||||||||
Construction management (2) |
596 | 193 | 2,388 | 7,391 | 11,199 | 1,737 | ||||||||||||||||||
Depreciation and amortization |
4,355 | 3,259 | 280 | 9 | | | ||||||||||||||||||
General and administrative (3) |
| | | | | | ||||||||||||||||||
Transactions (4) |
4,608 | 677 | 601 | 3,632 | 740 | 681 | ||||||||||||||||||
Other |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total operating expenses |
14,826 | 7,682 | 4,154 | 11,251 | 11,541 | 2,841 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
531 | 4,431 | 1,818 | (1,667 | ) | 2,218 | (1,024 | ) | ||||||||||||||||
Other Income (Expenses): |
||||||||||||||||||||||||
Equity in earnings of unconsolidated joint ventures |
(7 | ) | (5 | ) | 1 | | | | ||||||||||||||||
Interest and other income |
(51 | ) | (63 | ) | 3 | (3 | ) | | | |||||||||||||||
Interest expense |
(1,320 | ) | (1,189 | ) | (262 | ) | (3 | ) | | | ||||||||||||||
Tax expense |
(123 | ) | (125 | ) | (124 | ) | (83 | ) | | | ||||||||||||||
Loss from early extinguishment of debt |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net Income |
$ | (970 | ) | $ | 3,049 | $ | 1,436 | $ | (1,756 | ) | $ | 2,218 | $ | (1,024 | ) |
(1) | Same store properties are properties that were acquired on or before December 31, 2010 and new properties are properties acquired after December 31, 2010. |
(2) | Construction management revenues and expenses are included entirely in new properties as they are not allocable to specific properties. |
(3) | General and administrative expenses are included entirely in same store properties as they are not allocable to specific properties. |
(4) | Transaction expenses are included entirely in new properties as they are not allocable to specific properties. |
Page 12
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Same Store Operating Trend Summary
(unaudited and in thousands)
Three Months Ended | ||||||||||||||||||||
Same store (1) |
30-Jun-12 | 31-Mar-12 | Percentage Change |
30-Jun-11 | Percentage Change |
|||||||||||||||
Rental (2) |
$ | 224,804 | $ | 216,061 | 4.0 | % | $ | 202,806 | 10.8 | % | ||||||||||
Tenant reimbursements - Utilities |
39,522 | 35,980 | 9.8 | % | 37,578 | 5.2 | % | |||||||||||||
Tenant reimbursements - Other |
17,616 | 18,994 | (7.3 | %) | 13,733 | 28.3 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
281,942 | 271,035 | 4.0 | % | 254,117 | 10.9 | % | ||||||||||||||
Rental property operating and maintenance - Utilities |
41,266 | 37,905 | 8.9 | % | 41,055 | 0.5 | % | |||||||||||||
Rental property operating and maintenance - Other |
42,106 | 39,211 | 7.4 | % | 31,785 | 32.5 | % | |||||||||||||
Property taxes |
14,840 | 15,347 | (3.3 | %) | 13,922 | 6.6 | % | |||||||||||||
Insurance |
2,126 | 2,101 | 1.2 | % | 1,933 | 10.0 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
100,338 | 94,564 | 6.1 | % | 88,695 | 13.1 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net Operating Income (3) |
$ | 181,604 | $ | 176,471 | 2.9 | % | $ | 165,422 | 9.8 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Same store occupancy at end of quarter (4) |
92.9 | % | 94.4 | % | 93.9 | % | ||||||||||||||
|
|
|
|
|
|
(1) | Same store properties were acquired on or before December 31, 2010. |
(2) | For the periods presented, same store straight-line rent was $18,980, $15,318 and $14,305, respectively, and non-cash purchase accounting adjustments were $1,535, $1,484, and $1,860, respectively. |
(3) | For a definition and discussion of Net Operating Income, see page 30. |
(4) | Occupancy excludes space held for redevelopment. For some of our properties, we calculate occupancy based on factors in addition to contractually leased square feet, including available power, required support space and common area. |
Page 13
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Consolidated Debt Analysis
(unaudited, in thousands)
Maturity Date | Principal Balance as
of June 30, 2012 |
% of Debt | Interest Rate as
of June 30, 2012 |
Interest Rate as
of June 30, 2012 including swaps |
||||||||||||||
Revolving Credit Facility |
||||||||||||||||||
Global revolving credit facility |
November 2, 2016 (1) | 324,476 | 9.5 | % | 1.68 | % | ||||||||||||
|
|
|
|
|||||||||||||||
$ | 324,476 | 9.5 | % | |||||||||||||||
Unsecured term loan: |
||||||||||||||||||
Unsecured term loan |
April 16, 2017 | 520,942 | 15.3 | % | 1.92 | % | 2.19 | % | ||||||||||
|
|
|
|
|||||||||||||||
$ | 520,942 | 15.3 | % | |||||||||||||||
Unsecured senior notes: |
||||||||||||||||||
Prudential Shelf Facility: |
||||||||||||||||||
Series B |
November 5, 2013 | 33,000 | 1.0 | % | 9.32 | % | ||||||||||||
Series C |
January 6, 2016 | 25,000 | 0.7 | % | 9.68 | % | ||||||||||||
Series D |
January 20, 2015 | 50,000 | 1.5 | % | 4.57 | % | ||||||||||||
Series E |
January 20, 2017 | 50,000 | 1.5 | % | 5.73 | % | ||||||||||||
Series F |
February 3, 2015 | 17,000 | 0.5 | % | 4.50 | % | ||||||||||||
|
|
|
|
|||||||||||||||
Total Prudential Shelf Facility |
$ | 175,000 | 5.2 | % | ||||||||||||||
Senior Notes: |
||||||||||||||||||
5.875% notes due 2020 |
February 1, 2020 | 500,000 | 14.7 | % | 5.88 | % | ||||||||||||
4.50% notes due 2015 |
July 15, 2015 | 375,000 | 11.0 | % | 5.25 | % | ||||||||||||
5.25% notes due 2021 |
March 15, 2021 | 400,000 | 11.8 | % | 4.50 | % | ||||||||||||
Unamortized discounts |
(8,431 | ) | -0.2 | % | ||||||||||||||
|
|
|
|
|||||||||||||||
Total senior notes |
$ | 1,266,569 | 37.3 | % | ||||||||||||||
Total unsecured senior notes |
$ | 1,441,569 | 42.5 | % | ||||||||||||||
Exchangeable senior debentures: |
||||||||||||||||||
5.50% exchangeable senior debentures due 2029 |
April 15, 2029 | 266,400 | 7.8 | % | 5.50 | % | ||||||||||||
|
|
|
|
|||||||||||||||
Total exchangeable senior debentures |
$ | 266,400 | 7.8 | % | ||||||||||||||
Mortgage loans: |
||||||||||||||||||
1350 Duane Avenue/3080 Raymond Street |
October 1, 2012(2) | 52,800 | 1.6 | % | 5.42 | % | ||||||||||||
Paul van Vlissingenstraat 16 |
July 18, 2013 | 12,910 | 0.4 | % | 2.38 | % | 5.58 | % | ||||||||||
Chemin de lEpinglier 2 |
July 18, 2013 | 9,341 | 0.3 | % | 2.28 | % | 5.57 | % | ||||||||||
1500 Space Park Drive |
October 5, 2013 | 36,796 | 1.1 | % | 6.15 | % | ||||||||||||
Gyroscoopweg 2E-2F |
October 18, 2013 | 8,220 | 0.2 | % | 2.28 | % | 5.49 | % | ||||||||||
360 Spear Street |
November 8, 2013 | 47,098 | 1.4 | % | 6.32 | % | ||||||||||||
Mundells Roundabout |
November 30, 2013 | 67,265 | 2.0 | % | 2.23 | % | 4.18 | % | ||||||||||
Clonshaugh Industrial Estate II |
September 4, 2014 | 38,001 | 1.1 | % | 5.28 | % | 7.20 | % | ||||||||||
Cressex 1 |
October 16, 2014 | 27,838 | 0.8 | % | 5.68 | % | ||||||||||||
Manchester Technopark |
October 16, 2014 | 8,469 | 0.2 | % | 5.68 | % | ||||||||||||
Secured Term Debt |
November 11, 2014 | 137,430 | 4.0 | % | 5.65 | % | ||||||||||||
200 Paul Avenue 1-4 |
October 8, 2015 | 73,565 | 2.2 | % | 5.74 | % | ||||||||||||
600 West Seventh Street |
March 15, 2016 | 51,953 | 1.5 | % | 5.80 | % | ||||||||||||
34551 Ardenwood Boulevard 1-4 |
November 11, 2016 | 53,277 | 1.6 | % | 5.95 | % | ||||||||||||
2334 Lundy Place |
November 11, 2016 | 38,748 | 1.1 | % | 5.96 | % | ||||||||||||
1100 Space Park Drive |
December 11, 2016 | 53,255 | 1.6 | % | 5.89 | % | ||||||||||||
2045 & 2055 LaFayette Street |
February 6, 2017 | 65,093 | 1.9 | % | 5.93 | % | ||||||||||||
150 South First Street |
February 6, 2017 | 51,175 | 1.5 | % | 6.30 | % | ||||||||||||
8025 North Interstate 35 |
March 6, 2017 | 6,680 | 0.2 | % | 4.09 | % | ||||||||||||
731 East Trade Street |
July 1, 2020 | 4,661 | 0.1 | % | 8.22 | % | ||||||||||||
Unamortized net premiums |
2,250 | 0.1 | % | |||||||||||||||
|
|
|
|
|||||||||||||||
$ | 846,825 | 24.9 | % | |||||||||||||||
Total Consolidated Debt |
$ | 3,400,212 | 100.0 | % | ||||||||||||||
|
|
|
|
|||||||||||||||
Weighted average cost of debt (including interest rate swaps) |
4.67 | % | ||||||||||||||||
|
|
(1) | Assumes all extensions will be exercised. |
(2) | We anticipate paying off this mortgage loan on September 4, 2012, without penalty. |
Global Revolving Credit Facility
(in thousands)
Maximum Available as
of June 30, 2012 |
Available as
of June 30, 2012 (3) |
Drawn as of June 30, 2012 |
||||||||||
Global Revolving Credit Facility |
$ | 1,500,000 | $ | 1,152,982 | $ | 324,476 |
(3) | Net of letters of credit issued. |
Page 14
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Debt Maturities
(unaudited, in thousands)
2012 | 2013 | 2014 | 2015 | 2016 | Thereafter | Total | ||||||||||||||||||||||
Global revolving credit facility (1) |
$ | | $ | | $ | | $ | | $ | 324,476 | $ | | $ | 324,476 | ||||||||||||||
Unsecured term loan |
| | | | | 520,942 | 520,942 | |||||||||||||||||||||
Prudential shelf facility senior notes |
| 33,000 | | 67,000 | 25,000 | 50,000 | 175,000 | |||||||||||||||||||||
5.875% notes due 2020 |
| | | | | 500,000 | 500,000 | |||||||||||||||||||||
4.50% notes due 2015 |
| | | 375,000 | | | 375,000 | |||||||||||||||||||||
5.25% notes due 2021 |
| | | | | 400,000 | 400,000 | |||||||||||||||||||||
5.50% exchangeable senior debentures due 2029 (2) |
| | 266,400 | | | | 266,400 | |||||||||||||||||||||
Secured Term Debt (3) |
1,438 | 3,026 | 132,966 | | | | 137,430 | |||||||||||||||||||||
200 Paul Avenue 1-4 |
920 | 1,932 | 2,048 | 68,665 | | | 73,565 | |||||||||||||||||||||
Mundells Roundabout |
| 67,265 | | | | | 67,265 | |||||||||||||||||||||
2045 & 2055 LaFayette Street |
472 | 998 | 1,060 | 1,125 | 1,195 | 60,243 | 65,093 | |||||||||||||||||||||
34551 Ardenwood Boulevard 1-4 |
361 | 765 | 812 | 862 | 50,477 | | 53,277 | |||||||||||||||||||||
1100 Space Park Drive |
365 | 774 | 821 | 871 | 50,424 | | 53,255 | |||||||||||||||||||||
600 West Seventh Street |
778 | 1,626 | 1,723 | 1,825 | 46,001 | | 51,953 | |||||||||||||||||||||
1350 Duane Avenue/3080 Raymond Street (4) |
52,800 | | | | | | 52,800 | |||||||||||||||||||||
150 South First Street |
345 | 733 | 781 | 832 | 878 | 47,606 | 51,175 | |||||||||||||||||||||
360 Spear Street |
486 | 46,612 | | | | | 47,098 | |||||||||||||||||||||
2334 Lundy Place |
262 | 555 | 590 | 627 | 36,714 | | 38,748 | |||||||||||||||||||||
Clonshaugh Industrial Estate II |
| | 38,001 | | | | 38,001 | |||||||||||||||||||||
1500 Space Park Drive |
1,113 | 35,683 | | | | | 36,796 | |||||||||||||||||||||
Cressex 1 |
241 | 482 | 27,115 | | | | 27,838 | |||||||||||||||||||||
Paul van Vlissingenstraat 16 |
106 | 12,804 | | | | | 12,910 | |||||||||||||||||||||
Chemin de lEpinglier 2 |
77 | 9,264 | | | | | 9,341 | |||||||||||||||||||||
Gyroscoopweg 2E-2F |
67 | 8,153 | | | | | 8,220 | |||||||||||||||||||||
Manchester Technopark |
73 | 147 | 8,249 | | | | 8,469 | |||||||||||||||||||||
8025 North Interstate 35 |
120 | 246 | 257 | 268 | 5,789 | | 6,680 | |||||||||||||||||||||
731 East Trade Street |
152 | 323 | 351 | 416 | 503 | 2,916 | 4,661 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
$ | 60,176 | $ | 224,388 | $ | 481,174 | $ | 517,491 | $ | 541,457 | $ | 1,581,707 | $ | 3,406,393 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Term to Initial Maturity (2) |
4.5 Years | |
Weighted Average Term to Initial Maturity (assuming exercise of extension options) (2) |
4.6 Years |
(1) | Assumes all extensions will be exercised. |
(2) | Assumes maturity of 5.50% exchangeable senior debentures due 2029 at first redemption date in April 2014. |
(3) | This amount represents six mortgage loans secured by our interests in 36 NE 2nd Street, 3300 East Birch Street, 100 & 200 Quannapowitt Parkway, 300 Boulevard East, 4849 Alpha Road, and 11830 Webb Chapel Road. Each of these loans is cross-collateralized by the six properties. |
(4) | We anticipate paying off this mortgage loan on September 4, 2012, without penalty. |
Note: Total excludes $2,250 of loan premiums, net and ($6,905), ($718), and ($808) of debt discount on 5.875% unsecured senior notes due 2020, 4.50% unsecured senior notes due 2015, and 5.25% unsecured senior notes due 2021, respectively.
Page 15
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Debt Analysis & Covenant Compliance
(unaudited)
Debt Covenant Ratios (1): |
As of June 30, 2012 |
|||||||||||
4.50% Notes due 2015, 5.875% Notes due 2020 & 5.25% Notes due 2021 |
Global Revolving Credit Facility & Unsecured Term Loan |
|||||||||||
Required |
Actual | Required |
Actual | |||||||||
Total Outstanding Debt / Total Assets (2) |
Less than 60% | 40 | % | Less than 60%(3) | 34 | % | ||||||
Secured Debt / Total Assets (4) |
Less than 40% | 10 | % | Less than 40% | 9 | % | ||||||
Total Unencumbered Assets / Unsecured Debt |
Greater than 150% | 277 | % | N/A | ||||||||
Consolidated EBITDA / Interest Expense (5) |
Greater than 1.50x | 3.8 | x | N/A | ||||||||
Fixed Charge Coverage |
N/A | Greater than 1.50x | 3.2 | x | ||||||||
Unsecured Debt / Total Unencumbered Asset Value (6) |
N/A | Less than 60% | 38 | % | ||||||||
Unencumbered Assets Debt Service Coverage Ratio |
N/A | Greater than 1.50x | 5.1 | x |
(1) | For a definition of the capitalized terms used in the table above and related footnotes, please refer to: the Indenture dated January 28, 2010, which governs the 5.875% Notes due 2020; the Indenture dated July 8, 2010, which governs the 4.50% Notes due 2015; the Indenture and Supplemental Indenture No.1 dated March 8, 2011, which govern the 5.25% Notes due 2021; the Global Senior Credit Agreement dated as of November 3, 2011; and the Term Loan Agreement dated as of April 16, 2012, each of which is filed as an exhibit to our reports filed with the Securities and Exchange Commission. |
(2) | This ratio is referred to as the Leverage Ratio, defined as Consolidated Debt / Total Asset Value, under the Global Revolving Credit Facility and Unsecured Term Loan. Under the 4.50% Notes due 2015, 5.875% Notes due 2020, and 5.25% Notes due 2021, Total Assets is calculated using Consolidated EBITDA capped at 9.0%. Under the Global Revolving Credit Facility and Unsecured Term Loan, Total Asset Value is calculated using Adjusted Net Operating Income capped at 8.25% for Data Center Assets and 7.50% for Other Assets. |
(3) | The Company has the right to maintain a Leverage Ratio of greater than 60.0% but less than or equal to 65.0% for up to four consecutive fiscal quarters during the term of the Global Revolving Credit Facility and Unsecured Term Loan following an acquisition of one or more assets for a purchase price and other consideration in an amount not less than 5% of Total Asset Value. |
(4) | This ratio is referred to as the Secured Debt Leverage Ratio, defined as Consolidated Secured Debt / Total Asset Value, under the Global Revolving Credit Facility and Unsecured Term Loan. |
(5) | Calculated as current quarter annualized Consolidated EBITDA to current quarter annualized Interest Expense (including capitalized interest and debt discounts). |
(6) | Assets must satisfy certain conditions to qualify for inclusion as an Unencumbered Asset under the Global Revolving Credit Facility and Unsecured Term Loan. |
Page 16
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Portfolio Summary
As of June 30, 2012
6/30/2012 | 3/31/2012 | |||||||
Number of Properties: |
||||||||
Domestic |
88 | 85 | ||||||
International |
17 | 17 | ||||||
|
|
|
|
|||||
105 | (1) | 102 | (1) | |||||
Number of Buildings: |
||||||||
Domestic |
134 | 127 | ||||||
International |
21 | 21 | ||||||
|
|
|
|
|||||
155 | 148 | |||||||
Number of Markets: |
||||||||
Domestic (2) |
21 | 21 | ||||||
International (3) |
11 | 10 | ||||||
|
|
|
|
|||||
32 | 31 | |||||||
Net Rentable Square Feet: |
||||||||
Domestic |
16,157,756 | 15,220,620 | ||||||
International |
1,724,101 | 1,702,434 | ||||||
|
|
|
|
|||||
17,881,857 | 16,923,054 | |||||||
Redevelopment Square Feet: |
||||||||
Domestic |
1,939,316 | 1,929,708 | ||||||
International |
237,828 | 259,495 | ||||||
|
|
|
|
|||||
2,177,144 | 2,189,203 | |||||||
Portfolio Occupancy (4) |
93.5 | % | 94.8 | % | ||||
Same Store Pool Occupancy (4) |
92.9 | % | 94.4 | % | ||||
Average Original Lease Term (years) |
13.7 | 13.7 | ||||||
Average Remaining Lease Term (years) |
7.0 | 7.0 | ||||||
Lease Expirations (through 2013) |
6.2 | % | 7.4 | % |
(1) | Excludes three properties held as investments in unconsolidated joint ventures and developable land. |
(2) | One market includes developable land in Portland, Oregon. |
(3) | Two markets include developable land in Sydney, Australia and Melbourne, Australia. |
(4) | Occupancy excludes space held for redevelopment. For some of our properties, we calculate occupancy based on factors in addition to contractually leased square feet, including available power, required support space and common area. |
Page 17
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Properties Acquired
For the three months ended June 30, 2012
Property |
Metropolitan Area |
Date Acquired | Purchase Price (in millions) |
Net
Rentable Square Footage of Property (1) |
Total
Square Footage Held for Redevelopment |
Percentage of
Total Net Rentable Square Footage of Property Occupied (2) |
||||||||||||||
400 S. Akard Street |
Dallas, TX | Jun-12 | $ | 75.0 | 269,563 | | 84.6 | % | ||||||||||||
9333, 9355, 9377 Grand Avenue |
Chicago, IL | May-12 | $ | 22.3 | 457,429 | 117,515 | 100.0 | % | ||||||||||||
8025 N. Interstate 35 |
Austin, TX | May-12 | $ | 12.5 | (3) | 62,237 | | 100.0 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
$ | 109.8 | 789,229 | 117,515 | 94.7 | % | |||||||||||||||
|
|
|
|
|
|
|
|
(1) | We estimate the total net rentable square feet available for lease based on a number of factors in addition to contractually leased square feet, including available power, required support space and common area. |
(2) | Occupancy percentages are calculated net of square footage held for redevelopment. |
(3) | Assumed mortgage loan of $6.7 million. |
Page 18
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Occupancy Analysis
As of June 30, 2012
(Dollar amounts in thousands)
Occupancy (3) | Net Rentable Square Feet as a % of |
Annualized Rent as a % of |
||||||||||||||||||||||||||||||||||||||||||||||
Property |
Acquisition Date |
Property Type |
Net Rentable Square Feet (1) |
Redevelopment Space |
Annualized Rent ($000) (2) |
As of 6/30/12 |
As of 3/31/12 |
As of 12/31/11 |
As of 09/30/11 |
As of 06/30/11 |
As of 03/31/11 |
Total Portfolio |
Total Portfolio |
|||||||||||||||||||||||||||||||||||
NORTH AMERICA |
||||||||||||||||||||||||||||||||||||||||||||||||
Silicon Valley |
||||||||||||||||||||||||||||||||||||||||||||||||
1350 Duane & 3080 Raymond |
Oct-09 | Corporate Data Centers |
185,000 | | 10,258 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 1.0 | % | 1.2 | % | |||||||||||||||||||||||||||
3011 Lafayette Street |
Jan-07 | Corporate Data Centers |
90,780 | | 10,246 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.5 | 1.2 | |||||||||||||||||||||||||||||
1500 Space Park Drive |
Sep-07 | Corporate Data Centers |
51,615 | | 9,053 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.3 | 1.1 | |||||||||||||||||||||||||||||
1525 Comstock Street |
Sep-07 | Corporate Data Centers |
42,385 | | 8,398 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.2 | 1.0 | |||||||||||||||||||||||||||||
3105 & 3205 Alfred Street |
May-10 | Corporate Data Centers |
49,858 | | 8,332 | 87.9 | % | 64.1 | % | 58.1 | % | 58.1 | % | 100.0 | % | 100.0 | % | 0.3 | 1.0 | |||||||||||||||||||||||||||||
1100 Space Park Drive |
Nov-04 | Internet Gateway Data Centers |
165,297 | | 7,525 | 92.7 | % | 100.0 | % | 100.0 | % | 92.7 | % | 100.0 | % | 100.0 | % | 0.9 | 0.9 | |||||||||||||||||||||||||||||
2045 & 2055 LaFayette Street |
May-04 | Corporate Data Centers |
300,000 | | 7,020 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 1.7 | 0.8 | |||||||||||||||||||||||||||||
1725 Comstock Street |
Apr-10 | Corporate Data Centers |
39,643 | | 6,664 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 66.7 | % | 0.2 | 0.8 | |||||||||||||||||||||||||||||
150 South First Street |
Sep-04 | Corporate Data Centers |
179,761 | | 6,450 | 93.7 | % | 99.0 | % | 99.0 | % | 98.3 | % | 98.3 | % | 98.3 | % | 1.0 | 0.8 | |||||||||||||||||||||||||||||
1201 Comstock Street |
Jun-08 | Corporate Data Centers |
24,000 | | 4,598 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.1 | 0.5 | |||||||||||||||||||||||||||||
2334 Lundy Place |
Dec-02 | Corporate Data Centers |
130,752 | | 4,393 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.7 | 0.5 | |||||||||||||||||||||||||||||
4650 Old Ironsides Drive |
Jun-05 | Corporate Data Centers |
124,383 | | 3,954 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.7 | 0.5 | |||||||||||||||||||||||||||||
2401 Walsh Street |
Jun-05 | Corporate Data Centers |
167,932 | | 3,723 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.9 | 0.4 | |||||||||||||||||||||||||||||
2950 Zanker Road |
Aug-10 | Corporate Data Centers |
69,700 | | 2,970 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.4 | 0.4 | |||||||||||||||||||||||||||||
2403 Walsh Street |
Jun-05 | Corporate Data Centers |
103,940 | | 2,304 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.6 | 0.3 | |||||||||||||||||||||||||||||
4700 Old Ironsides Drive |
Jun-05 | Corporate Data Centers |
90,139 | | 1,998 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.5 | 0.2 | |||||||||||||||||||||||||||||
444 Toyama Drive |
Sep-09 | Corporate Data Centers |
42,083 | | 1,830 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.2 | 0.2 | |||||||||||||||||||||||||||||
2805 Lafayette Street (4) |
Aug-10 | Corporate Data Centers |
| 150,000 | | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | 0.0 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
1,857,268 | 150,000 | 99,716 | 98.4 | % | 98.9 | % | 98.7 | % | 98.0 | % | 99.8 | % | 99.1 | % | 10.2 | % | 11.8 | % | ||||||||||||||||||||||||||||||
Dallas |
||||||||||||||||||||||||||||||||||||||||||||||||
2323 Bryan Street |
Jan-02 | Internet Gateway Data Centers |
453,539 | 23,568 | 14,876 | 76.1 | % | 75.2 | % | 74.8 | % | 73.4 | % | 75.0 | % | 73.8 | % | 2.5 | % | 1.8 | % | |||||||||||||||||||||||||||
2501 S. State Highway 121 |
Feb-12 | Corporate Data Centers |
819,243 | | 12,966 | 98.5 | % | 98.5 | % | N/A | N/A | N/A | N/A | 4.7 | 2.0 | |||||||||||||||||||||||||||||||||
2440 Marsh Lane |
Jan-03 | Corporate Data Centers |
135,250 | | 11,945 | 85.9 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.8 | 1.4 | |||||||||||||||||||||||||||||
1232 Alma Road |
Sep-09 | Corporate Data Centers |
105,726 | | 11,343 | 99.5 | % | 99.5 | % | 99.5 | % | 99.5 | % | 99.0 | % | 67.7 | % | 0.6 | 1.3 | |||||||||||||||||||||||||||||
4849 Alpha Road |
Apr-04 | Corporate Data Centers |
125,538 | | 10,867 | 99.7 | % | 99.7 | % | 99.7 | % | 99.6 | % | 99.6 | % | 100.0 | % | 0.7 | 1.3 | |||||||||||||||||||||||||||||
4025 Midway Road |
Jan-06 | Corporate Data Centers |
90,058 | 10,532 | 8,798 | 99.9 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.5 | 1.0 | |||||||||||||||||||||||||||||
400 S. Akard |
Jun-12 | Internet Gateway Data Centers |
269,563 | | 7,890 | 84.6 | % | N/A | N/A | N/A | N/A | N/A | 1.5 | 0.9 | ||||||||||||||||||||||||||||||||||
11830 Webb Chapel Road |
Aug-04 | Corporate Data Centers |
365,647 | | 7,101 | 88.1 | % | 88.1 | % | 88.1 | % | 88.4 | % | 88.4 | % | 88.4 | % | 2.0 | 0.8 | |||||||||||||||||||||||||||||
14901 FAA Boulevard |
Jun-06 | Corporate Data Centers |
263,700 | | 5,061 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 1.5 | 0.6 | |||||||||||||||||||||||||||||
900 Dorothy Drive |
Aug-10 | Corporate Data Centers |
56,176 | | 1,565 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.3 | 0.2 | |||||||||||||||||||||||||||||
900 Quality Way |
Sep-09 | Corporate Data Centers |
31,011 | 81,242 | | 100.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.2 | 0.0 | |||||||||||||||||||||||||||||
1400 N. Bowser Road |
Sep-09 | Corporate Data Centers |
| 246,940 | | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | 0.0 | |||||||||||||||||||||||||||||
1301 International Parkway |
Sep-09 | Corporate Data Centers |
| 20,500 | | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | 0.0 | |||||||||||||||||||||||||||||
904 Quality Way |
Sep-09 | Corporate Data Centers |
| 46,750 | | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | 0.0 | |||||||||||||||||||||||||||||
905 Security Row |
Sep-09 | Corporate Data Centers |
| 249,657 | | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | 0.0 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
2,715,451 | 679,189 | 92,412 | 91.7 | % | 93.0 | % | 90.1 | % | 89.6 | % | 90.0 | % | 87.4 | % | 15.3 | % | 11.3 | % | ||||||||||||||||||||||||||||||
Northern Virginia |
||||||||||||||||||||||||||||||||||||||||||||||||
43881 Devin Shafron Drive |
Mar-07 | Corporate Data Centers |
180,000 | | 18,395 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 98.5 | % | 1.0 | % | 2.2 | % | |||||||||||||||||||||||||||
43915 Devin Shafron Drive |
May-09 | Corporate Data Centers |
129,033 | 3,247 | 15,525 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.7 | 1.8 | |||||||||||||||||||||||||||||
43791 Devin Shafron Drive |
Mar-07 | Corporate Data Centers |
132,806 | 2,194 | 10,674 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.7 | 1.3 | |||||||||||||||||||||||||||||
4030 Lafayette Center Drive |
Jul-10 | Corporate Data Centers |
72,696 | | 5,837 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.4 | 0.7 | |||||||||||||||||||||||||||||
43830 Devin Shafron Drive |
May-09 | Corporate Data Centers |
66,240 | 47,010 | 5,633 | 74.6 | % | 31.7 | % | 42.2 | % | 42.2 | % | 9.1 | % | 27.0 | % | 0.4 | 0.7 | |||||||||||||||||||||||||||||
45901 & 45845 Nokes Boulevard |
Dec-09 | Corporate Data Centers |
167,160 | | 4,549 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.9 | 0.5 | |||||||||||||||||||||||||||||
44470 Chilum Place |
Feb-07 | Corporate Data Centers |
95,440 | | 4,311 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.5 | 0.5 | |||||||||||||||||||||||||||||
4050 Lafayette Center Drive |
Jul-10 | Corporate Data Centers |
42,374 | | 3,396 | 99.0 | % | 99.0 | % | 34.2 | % | 34.2 | % | 34.2 | % | 34.2 | % | 0.2 | 0.4 | |||||||||||||||||||||||||||||
43790 Devin Shafron Drive |
May-09 | Corporate Data Centers |
152,138 | | 3,134 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | N/A | 0.9 | 0.4 | ||||||||||||||||||||||||||||||
21110 Ridgetop Circle |
Jan-07 | Corporate Data Centers |
135,513 | | 2,906 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.8 | 0.3 | |||||||||||||||||||||||||||||
21561 & 21571 Beaumeade Circle |
Dec-09 | Corporate Data Centers |
164,453 | | 2,846 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.9 | 0.3 | |||||||||||||||||||||||||||||
21551 Beaumeade Circle |
Dec-09 | Corporate Data Centers |
152,504 | | 2,027 | 100.0 | % | 100.0 | % | 100.0 | % | N/A | N/A | N/A | 0.9 | 0.2 | ||||||||||||||||||||||||||||||||
1807 Michael Faraday Court |
Oct-06 | Corporate Data Centers |
19,237 | | 1,861 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.1 | 0.2 | |||||||||||||||||||||||||||||
7505 Mason King Court |
Nov-08 | Corporate Data Centers |
109,650 | | 1,820 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.6 | 0.2 | |||||||||||||||||||||||||||||
251 Exchange Place |
Nov-05 | Corporate Data Centers |
70,982 | | 1,640 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.4 | 0.2 | |||||||||||||||||||||||||||||
43831 Devin Shafron Drive |
Mar-07 | Corporate Data Centers |
117,071 | | 1,538 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.7 | 0.2 | |||||||||||||||||||||||||||||
8100 Boone Boulevard |
Oct-06 | Corporate Data Centers |
17,015 | | 937 | 24.9 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.1 | 0.1 | |||||||||||||||||||||||||||||
1506 Moran Road |
Dec-11 | Corporate Data Centers |
13,626 | | 180 | 100.0 | % | 100.0 | % | 100.0 | % | N/A | N/A | N/A | 0.0 | 0.0 | ||||||||||||||||||||||||||||||||
4040 Lafayette Center Drive |
Jul-10 | Corporate Data Centers |
| 30,333 | | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 100.0 | % | 0.1 | 0.0 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
1,837,938 | 82,784 | 87,209 | 98.4 | % | 97.5 | % | 94.5 | % | 93.9 | % | 95.6 | % | 97.1 | % | 10.3 | % | 10.2 | % | ||||||||||||||||||||||||||||||
New York |
||||||||||||||||||||||||||||||||||||||||||||||||
111 Eighth Avenue (5) |
Oct-06 | Internet Gateway Data Centers |
116,843 | | 20,314 | 99.3 | % | 95.3 | % | 95.3 | % | 95.3 | % | 95.3 | % | 95.3 | % | 0.7 | % | 2.4 | % | |||||||||||||||||||||||||||
3 Corporate Place |
Dec-05 | Corporate Data Centers |
276,931 | | 18,140 | 100.0 | % | 100.0 | % | 100.0 | % | 98.0 | % | 96.1 | % | 96.1 | % | 1.5 | 2.1 | |||||||||||||||||||||||||||||
300 Boulevard East |
Nov-02 | Corporate Data Centers |
346,819 | 22,962 | 16,339 | 89.9 | % | 89.9 | % | 89.9 | % | 89.9 | % | 89.9 | % | 100.0 | % | 1.9 | 1.9 | |||||||||||||||||||||||||||||
365 S. Randolphville Road |
Feb-08 | Corporate Data Centers |
172,044 | 92,748 | 16,329 | 88.6 | % | 88.6 | % | 88.6 | % | 88.6 | % | 88.6 | % | 79.4 | % | 1.0 | 1.9 | |||||||||||||||||||||||||||||
60 & 80 Merritt Boulevard |
Jan-10 | Corporate Data Centers |
169,540 | | 12,645 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.9 | 1.5 | |||||||||||||||||||||||||||||
650 Randolph Road |
Jun-08 | Corporate Data Centers |
| 127,790 | | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | 0.0 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
1,082,177 | 243,500 | 83,767 | 94.9 | % | 94.5 | % | 94.5 | % | 93.9 | % | 93.5 | % | 96.3 | % | 6.0 | % | 9.8 | % | ||||||||||||||||||||||||||||||
San Francisco |
||||||||||||||||||||||||||||||||||||||||||||||||
200 Paul Avenue |
Nov-04 | Internet Gateway Data Centers |
509,158 | 18,522 | 28,455 | 96.3 | % | 99.3 | % | 99.4 | % | 99.4 | % | 99.4 | % | 96.3 | % | 2.8 | % | 3.4 | % | |||||||||||||||||||||||||||
365 Main Street |
Jul-10 | Corporate Data Centers |
226,981 | | 26,853 | 91.7 | % | 81.3 | % | 80.5 | % | 78.5 | % | 84.4 | % | 84.8 | % | 1.3 | 3.2 | |||||||||||||||||||||||||||||
720 2nd Street |
Jul-10 | Corporate Data Centers |
121,220 | | 15,184 | 87.4 | % | 86.9 | % | 86.1 | % | 94.5 | % | 95.8 | % | 97.3 | % | 0.7 | 1.8 | |||||||||||||||||||||||||||||
360 Spear Street |
Dec-11 | Corporate Data Centers |
154,950 | | 8,020 | 100.0 | % | 100.0 | % | 100.0 | % | N/A | N/A | N/A | 0.9 | 0.9 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
1,012,309 | 18,522 | 78,512 | 94.8 | % | 93.9 | % | 93.7 | % | 93.2 | % | 94.9 | % | 93.3 | % | 5.7 | % | 9.3 | % |
Page 19
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Occupancy Analysis
As of June 30, 2012
(Dollar amounts in thousands)
Occupancy (3) | Net Rentable Square Feet as a % of |
Annualized Rent as a % of |
||||||||||||||||||||||||||||||||||||||||||||||
Property |
Acquisition Date |
Property Type |
Net Rentable Square Feet (1) |
Redevelopment Space |
Annualized Rent ($000) (2) |
As of 6/30/12 |
As of 3/31/12 |
As of 12/31/11 |
As of 09/30/11 |
As of 06/30/11 |
As of 03/31/11 |
Total Portfolio |
Total Portfolio |
|||||||||||||||||||||||||||||||||||
Chicago |
||||||||||||||||||||||||||||||||||||||||||||||||
350 E Cermak Road |
May-05 | Internet Gateway Data Centers |
1,129,226 | 4,513 | 67,983 | 98.3 | % | 98.7 | % | 97.0 | % | 96.8 | % | 96.9 | % | 96.4 | % | 6.3 | % | 8.0 | % | |||||||||||||||||||||||||||
600-780 S. Federal Street |
Sep-05 | Internet Gateway Data Centers |
142,166 | 19,381 | 6,832 | 76.6 | % | 67.5 | % | 63.5 | % | 64.6 | % | 64.6 | % | 64.6 | % | 0.8 | 0.8 | |||||||||||||||||||||||||||||
9333, 9355, 9377 Grand Avenue |
May-12 | Corporate Data Centers |
457,429 | 117,515 | 1,895 | 100.0 | % | N/A | N/A | N/A | N/A | N/A | 2.6 | 0.2 | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
1,728,821 | 141,409 | 76,710 | 97.0 | % | 94.8 | % | 92.8 | % | 92.8 | % | 92.8 | % | 92.4 | % | 9.7 | % | 9.0 | % | ||||||||||||||||||||||||||||||
Phoenix |
||||||||||||||||||||||||||||||||||||||||||||||||
2121 South Price Road |
Jul-10 | Corporate Data Centers |
338,655 | 180,824 | 34,750 | 84.1 | % | 83.8 | % | 92.9 | % | 96.5 | % | 96.5 | % | 96.5 | % | 1.9 | % | 4.1 | % | |||||||||||||||||||||||||||
120 E Van Buren Street |
Jul-06 | Internet Gateway Data Centers |
287,514 | | 22,341 | 91.2 | % | 90.1 | % | 89.3 | % | 89.1 | % | 89.1 | % | 85.9 | % | 1.6 | 2.6 | |||||||||||||||||||||||||||||
2055 East Technology Circle |
Oct-06 | Corporate Data Centers |
76,350 | | 8,239 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.4 | 1.0 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
702,519 | 180,824 | 65,330 | 88.7 | % | 88.1 | % | 92.1 | % | 93.7 | % | 93.7 | % | 92.3 | % | 3.9 | % | 7.7 | % | ||||||||||||||||||||||||||||||
Boston |
||||||||||||||||||||||||||||||||||||||||||||||||
128 First Avenue |
Jan-10 | Corporate Data Centers |
274,750 | | 22,332 | 99.2 | % | 99.5 | % | 99.4 | % | 99.4 | % | 99.6 | % | 99.6 | % | 1.5 | % | 2.6 | % | |||||||||||||||||||||||||||
55 Middlesex Turnpike |
Jan-10 | Corporate Data Centers |
106,000 | | 12,031 | 90.5 | % | 90.6 | % | 90.6 | % | 90.6 | % | 89.7 | % | 89.7 | % | 0.6 | 1.4 | |||||||||||||||||||||||||||||
100 Quannapowitt Parkway |
Jun-04 | Corporate Data Centers |
286,550 | 100,406 | 6,294 | 88.7 | % | 88.0 | % | 90.8 | % | 90.8 | % | 88.9 | % | 70.0 | % | 1.6 | 0.7 | |||||||||||||||||||||||||||||
115 Second Avenue |
Oct-05 | Corporate Data Centers |
66,730 | | 3,647 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.4 | 0.4 | |||||||||||||||||||||||||||||
600 Winter Street |
Sep-06 | Corporate Data Centers |
30,400 | | 842 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.2 | 0.1 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
764,430 | 100,406 | 45,146 | 94.2 | % | 94.0 | % | 95.0 | % | 95.0 | % | 94.3 | % | 87.5 | % | 4.3 | % | 5.2 | % | ||||||||||||||||||||||||||||||
Los Angeles |
||||||||||||||||||||||||||||||||||||||||||||||||
600 West Seventh Street |
May-04 | Internet Gateway Data Centers |
489,722 | | 22,427 | 98.4 | % | 98.7 | % | 98.7 | % | 97.8 | % | 95.5 | % | 95.3 | % | 2.7 | % | 2.7 | % | |||||||||||||||||||||||||||
2260 East El Segundo Boulevard |
Jul-10 | Corporate Data Centers |
132,240 | | 12,436 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.7 | 1.5 | |||||||||||||||||||||||||||||
200 North Nash Street |
Jun-05 | Corporate Data Centers |
113,606 | | 2,518 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.6 | 0.3 | |||||||||||||||||||||||||||||
3015 Winona Avenue |
Dec-04 | Corporate Data Centers |
82,911 | | 1,672 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.5 | 0.2 | |||||||||||||||||||||||||||||
3300 East Birch Street |
Aug-03 | Corporate Data Centers |
68,807 | | 1,547 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.4 | 0.2 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
887,286 | | 40,600 | 99.1 | % | 99.3 | % | 99.3 | % | 98.8 | % | 97.6 | % | 97.4 | % | 4.9 | % | 4.9 | % | ||||||||||||||||||||||||||||||
Atlanta |
||||||||||||||||||||||||||||||||||||||||||||||||
375 Riverside Parkway |
Jun-03 | Corporate Data Centers |
250,191 | | 8,272 | 99.2 | % | 99.2 | % | 99.2 | % | 99.2 | % | 99.2 | % | 100.0 | % | 1.4 | % | 1.0 | % | |||||||||||||||||||||||||||
760 Doug Davis Road |
Dec-11 | Corporate Data Centers |
334,306 | | 6,376 | 100.0 | % | 100.0 | % | 100.0 | % | N/A | N/A | N/A | 1.9 | 0.8 | ||||||||||||||||||||||||||||||||
101 Aquila Way |
Apr-06 | Corporate Data Centers |
313,581 | | 1,411 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 1.8 | 0.2 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
898,078 | | 16,059 | 99.8 | % | 99.8 | % | 99.8 | % | 99.7 | % | 99.7 | % | 100.0 | % | 5.1 | % | 2.0 | % | ||||||||||||||||||||||||||||||
Philadelphia |
||||||||||||||||||||||||||||||||||||||||||||||||
833 Chestnut Street |
Mar-05 | Corporate Data Centers |
592,295 | 62,463 | 12,992 | 92.0 | % | 92.0 | % | 92.0 | % | 88.9 | % | 85.0 | % | 84.1 | % | 3.3 | % | 1.5 | % | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
592,295 | 62,463 | 12,992 | 92.0 | % | 92.0 | % | 92.0 | % | 88.9 | % | 85.0 | % | 84.1 | % | 3.3 | % | 1.5 | % | ||||||||||||||||||||||||||||||
St. Louis |
||||||||||||||||||||||||||||||||||||||||||||||||
900 Walnut Street |
Aug-07 | Internet Gateway Data Centers |
112,266 | | 4,498 | 99.9 | % | 99.9 | % | 99.9 | % | 99.9 | % | 99.9 | % | 99.9 | % | 0.6 | % | 0.5 | % | |||||||||||||||||||||||||||
210 N Tucker Boulevard |
Aug-07 | Corporate Data Centers |
173,778 | 163,638 | 3,322 | 76.2 | % | 75.4 | % | 74.9 | % | 74.3 | % | 78.8 | % | 75.8 | % | 1.0 | 0.4 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
286,044 | 163,638 | 7,820 | 85.5 | % | 85.4 | % | 85.2 | % | 84.8 | % | 87.6 | % | 86.0 | % | 1.6 | % | 0.9 | % | ||||||||||||||||||||||||||||||
Houston |
||||||||||||||||||||||||||||||||||||||||||||||||
12001 - 12245 North Freeway |
Apr-06 | Corporate Data Centers |
282,483 | 18,222 | 6,869 | 77.1 | % | 88.9 | % | 88.9 | % | 80.6 | % | 78.9 | % | 91.9 | % | 1.6 | % | 0.8 | % | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
282,483 | 18,222 | 6,869 | 77.1 | % | 88.9 | % | 88.9 | % | 80.6 | % | 78.9 | % | 91.9 | % | 1.6 | % | 0.8 | % | ||||||||||||||||||||||||||||||
Miami |
||||||||||||||||||||||||||||||||||||||||||||||||
36 NE 2nd Street |
Jan-02 | Internet Gateway Data Centers |
162,140 | | 4,963 | 95.9 | % | 95.9 | % | 95.9 | % | 95.9 | % | 95.9 | % | 95.9 | % | 0.9 | % | 0.6 | % | |||||||||||||||||||||||||||
2300 NW 89th Place |
Sep-06 | Corporate Data Centers |
64,174 | | 654 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.4 | 0.1 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
226,314 | | 5,617 | 97.0 | % | 97.0 | % | 97.0 | % | 97.0 | % | 97.0 | % | 97.0 | % | 1.3 | % | 0.7 | % | ||||||||||||||||||||||||||||||
Charlotte |
||||||||||||||||||||||||||||||||||||||||||||||||
125 North Myers |
Aug-05 | Internet Gateway Data Centers |
25,402 | | 1,387 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.1 | % | 0.2 | % | |||||||||||||||||||||||||||
731 East Trade Street |
Aug-05 | Internet Gateway Data Centers |
40,879 | | 1,311 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.2 | 0.2 | |||||||||||||||||||||||||||||
113 North Myers |
Aug-05 | Internet Gateway Data Centers |
29,218 | | 923 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.2 | 0.1 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
95,499 | | 3,621 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.5 | % | 0.5 | % | ||||||||||||||||||||||||||||||
Denver |
||||||||||||||||||||||||||||||||||||||||||||||||
8534 Concord Center Drive |
Jun-05 | Corporate Data Centers |
85,660 | | 3,567 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.5 | % | 0.4 | % | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
85,660 | | 3,567 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.5 | % | 0.4 | % | ||||||||||||||||||||||||||||||
Sacramento |
||||||||||||||||||||||||||||||||||||||||||||||||
11085 Sun Center Drive |
Sep-11 | Corporate Data Centers |
69,048 | | 2,794 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | N/A | N/A | 0.4 | % | 0.3 | % | |||||||||||||||||||||||||||||
3065 Gold Camp Drive |
Oct-04 | Corporate Data Centers |
39,560 | 23,397 | 307 | 33.6 | % | 100.0 | % | 100.0 | % | 21.1 | % | 21.1 | % | 21.1 | % | 0.2 | 0.0 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
108,608 | 23,397 | 3,101 | 75.8 | % | 100.0 | % | 100.0 | % | 62.4 | % | 21.1 | % | 21.1 | % | 0.6 | % | 0.3 | % | ||||||||||||||||||||||||||||||
Toronto, Canada |
||||||||||||||||||||||||||||||||||||||||||||||||
6800 Millcreek Drive |
Apr-06 | Corporate Data Centers |
83,758 | | 2,034 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.5 | % | 0.2 | % | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
83,758 | | 2,034 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.5 | % | 0.2 | % | ||||||||||||||||||||||||||||||
Minneapolis/St. Paul |
||||||||||||||||||||||||||||||||||||||||||||||||
1125 Energy Park Drive |
Mar-05 | Corporate Data Centers |
112,827 | | 1,437 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.6 | % | 0.2 | % | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
112,827 | | 1,437 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.6 | % | 0.2 | % | ||||||||||||||||||||||||||||||
Austin |
||||||||||||||||||||||||||||||||||||||||||||||||
8025 North Interstate 35 |
May-12 | Corporate Data Centers |
62,237 | | 934 | 100.0 | % | N/A | N/A | N/A | N/A | N/A | 0.3 | % | 0.1 | % | ||||||||||||||||||||||||||||||||
7620 Metro Center Drive |
Dec-05 | Corporate Data Centers |
45,000 | | 325 | 67.1 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.3 | 0.0 | |||||||||||||||||||||||||||||
7500 Metro Center Drive |
Dec-05 | Corporate Data Centers |
| 74,962 | | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | 0.0 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
107,237 | 74,962 | 1,259 | 86.2 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.6 | % | 0.1 | % |
Page 20
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Occupancy Analysis
As of June 30, 2012
(Dollar amounts in thousands)
Occupancy (3) | Net Rentable Square Feet as a % of |
Annualized Rent as a % of |
||||||||||||||||||||||||||||||||||||||||||||||
Property |
Acquisition Date |
Property Type |
Net Rentable Square Feet (1) |
Redevelopment Space |
Annualized Rent ($000) (2) |
As of 6/30/12 |
As of 3/31/12 |
As of 12/31/11 |
As of 09/30/11 |
As of 06/30/11 |
As of 03/31/11 |
Total Portfolio |
Total Portfolio |
|||||||||||||||||||||||||||||||||||
EUROPE |
||||||||||||||||||||||||||||||||||||||||||||||||
London, England |
||||||||||||||||||||||||||||||||||||||||||||||||
3 St. Annes Boulevard |
Dec-07 | Corporate Data Centers |
96,384 | | 11,157 | 65.7 | % | 60.3 | % | 52.4 | % | 52.4 | % | 69.9 | % | 80.0 | % | 0.5 | % | 1.3 | % | |||||||||||||||||||||||||||
Mundells Roundabout |
Apr-07 | Corporate Data Centers |
113,464 | | 7,776 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.6 | 0.9 | |||||||||||||||||||||||||||||
Cressex 1 |
Dec-07 | Corporate Data Centers |
50,847 | | 7,188 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.3 | 0.9 | |||||||||||||||||||||||||||||
6 Braham Street |
Jul-02 | Internet Gateway Data Centers |
63,233 | | 4,749 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.4 | 0.6 | |||||||||||||||||||||||||||||
2 St. Annes Boulevard |
Dec-07 | Corporate Data Centers |
30,612 | | 3,356 | 100.0 | % | 100.0 | % | 100.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.2 | 0.4 | |||||||||||||||||||||||||||||
1 St. Annes Boulevard |
Dec-07 | Corporate Data Centers |
20,219 | | 276 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.1 | 0.0 | |||||||||||||||||||||||||||||
Fountain Court |
Jul-11 | Corporate Data Centers |
| 131,771 | | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | N/A | N/A | 0.0 | 0.0 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
374,759 | 131,771 | 34,502 | 91.2 | % | 89.8 | % | 87.8 | % | 86.7 | % | 93.2 | % | 96.0 | % | 2.1 | % | 4.1 | % | ||||||||||||||||||||||||||||||
Dublin, Ireland |
||||||||||||||||||||||||||||||||||||||||||||||||
Unit 9 Blanchardstown Corporate Center |
Dec-06 | Corporate Data Centers |
120,000 | | 9,521 | 98.8 | % | 99.0 | % | 98.8 | % | 99.1 | % | 99.1 | % | 92.2 | % | 0.7 | % | 1.1 | % | |||||||||||||||||||||||||||
Clonshaugh Industrial Estate II |
Feb-06 | Corporate Data Centers |
124,500 | | 8,318 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.7 | 1.0 | |||||||||||||||||||||||||||||
Clonshaugh Industrial Estate I |
Feb-06 | Corporate Data Centers |
20,000 | | 1,453 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.1 | 0.2 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
264,500 | | 19,292 | 99.4 | % | 99.4 | % | 99.4 | % | 99.6 | % | 99.6 | % | 96.4 | % | 1.5 | % | 2.3 | % | ||||||||||||||||||||||||||||||
Paris, France |
||||||||||||||||||||||||||||||||||||||||||||||||
114 Rue Ambroise Croizat |
Dec-06 | Internet Gateway Data Centers |
332,795 | 19,351 | 19,105 | 93.5 | % | 93.4 | % | 91.6 | % | 91.6 | % | 91.6 | % | 91.6 | % | 1.9 | % | 2.3 | % | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
332,795 | 19,351 | 19,105 | 93.5 | % | 93.4 | % | 91.6 | % | 91.6 | % | 91.6 | % | 91.6 | % | 1.9 | % | 2.3 | % | ||||||||||||||||||||||||||||||
Amsterdam, Netherlands |
||||||||||||||||||||||||||||||||||||||||||||||||
Paul van Vlissingenstraat 16 |
Aug-05 | Corporate Data Centers |
112,472 | | 5,817 | 81.0 | % | 73.7 | % | 73.7 | % | 60.0 | % | 58.8 | % | 58.8 | % | 0.6 | % | 0.7 | % | |||||||||||||||||||||||||||
Cateringweg 5 |
Jun-10 | Corporate Data Centers |
55,972 | | 5,249 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.0 | % | 0.0 | % | 0.3 | 0.6 | |||||||||||||||||||||||||||||
Naritaweg 52 |
Dec-07 | Corporate Data Centers |
63,260 | | 2,488 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.4 | 0.3 | |||||||||||||||||||||||||||||
Gyroscoopweg 2E-2F |
Jul-06 | Corporate Data Centers |
55,585 | | 1,166 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.3 | 0.1 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
287,289 | | 14,720 | 92.4 | % | 89.7 | % | 89.7 | % | 84.3 | % | 83.7 | % | 83.7 | % | 1.6 | % | 1.7 | % | ||||||||||||||||||||||||||||||
Manchester, England |
||||||||||||||||||||||||||||||||||||||||||||||||
Manchester Technopark |
Jun-08 | Corporate Data Centers |
38,016 | | 2,019 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.2 | % | 0.2 | % | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
38,016 | | 2,019 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.2 | % | 0.2 | % | ||||||||||||||||||||||||||||||
Geneva, Switzerland |
||||||||||||||||||||||||||||||||||||||||||||||||
Chemin de l Epinglier 2 |
Nov-05 | Corporate Data Centers |
59,190 | | 1,605 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.3 | % | 0.2 | % | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
59,190 | | 1,605 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.3 | % | 0.2 | % | ||||||||||||||||||||||||||||||
ASIA PACIFIC |
||||||||||||||||||||||||||||||||||||||||||||||||
Singapore |
||||||||||||||||||||||||||||||||||||||||||||||||
29A International Business Park |
Nov-10 | Corporate Data Centers |
283,794 | 86,706 | 7,300 | 55.9 | % | 55.9 | % | 55.2 | % | 49.3 | % | 16.8 | % | 16.8 | % | 1.6 | % | 0.9 | % | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
283,794 | 86,706 | 7,300 | 55.9 | % | 55.9 | % | 55.2 | % | 49.3 | % | 16.8 | % | 16.8 | % | 1.6 | % | 0.9 | % | ||||||||||||||||||||||||||||||
NON-DATACENTER PROPERTIES |
||||||||||||||||||||||||||||||||||||||||||||||||
34551 Ardenwood Boulevard |
Jan-03 | Technology Manufacturing |
307,657 | | 6,998 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 1.7 | % | 0.8 | % | |||||||||||||||||||||||||||
2010 East Centennial Circle |
May-03 | Technology Manufacturing |
113,405 | | 3,194 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.6 | 0.4 | |||||||||||||||||||||||||||||
1 Savvis Parkway |
Aug-07 | Technology Office |
156,000 | | 2,644 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.9 | 0.3 | |||||||||||||||||||||||||||||
908 Quality Way |
Sep-09 | Technology Office |
14,400 | | 24 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 0.1 | 0.0 | |||||||||||||||||||||||||||||
47700 Kato Road & 1055 Page Avenue |
Sep-03 | Technology Manufacturing |
183,050 | | | 0.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 1.0 | 0.0 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
774,512 | | 12,860 | 76.4 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 4.3 | % | 1.5 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Portfolio Total/Weighted Average |
17,881,857 | (6) | 2,177,144 | 845,181 | 93.5 | % | 94.8 | % | 94.8 | % | 93.7 | % | 93.9 | % | 93.5 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | We estimate the total net rentable square feet available for lease based on a number of factors in addition to contractually leased square feet, including available power, required support space and common area. |
(2) | Annualized base rent represents the monthly contractual base rent (defined as cash base rent before abatements) under existing leases as of June 30, 2012 multiplied by 12. |
(3) | Occupancy excludes space held for redevelopment. For some of our properties, we calculate occupancy based on factors in addition to contractually leased square feet, including available power, required support space and common area. |
(4) | Property formerly referred to as 800 Central Expressway. |
(5) | Includes approximately 33,700 rentable square feet from a leasehold interest acquisition. |
(6) | Net rentable square feet excludes square footage at one joint venture: 2001 Sixth Avenue in Seattle, WA (400,369 net rentable square feet) which was 93.0% occupied as of June 30, 2012. |
Page 21
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Major Tenants
As of June 30, 2012
(Dollar amounts in thousands)
Tenant |
Number of Locations |
Total Occupied Square Feet (1) |
Percentage of Net Rentable Square Feet |
Annualized Rent (2) |
Percentage
of Annualized Rent |
Weighted Average Remaining Lease Term in Months |
||||||||||||||||||||
1 | CenturyLink, Inc. (3) |
34 | 2,785,503 | 15.6 | % | $ | 91,090 | 10.8 | % | 97 | ||||||||||||||||
2 | TelX Group, Inc. |
11 | 259,294 | 1.5 | % | $ | 34,137 | 4.0 | % | 165 | ||||||||||||||||
3 | Equinix Operating Company, Inc. |
9 | 878,062 | 4.9 | % | $ | 33,045 | 3.9 | % | 80 | ||||||||||||||||
4 | Facebook, Inc. |
4 | 241,865 | 1.4 | % | $ | 31,129 | 3.7 | % | 71 | ||||||||||||||||
5 | Softlayer Technologies, Inc. |
8 | 372,009 | 2.1 | % | $ | 29,790 | 3.5 | % | 106 | ||||||||||||||||
6 | Morgan Stanley |
5 | 182,592 | 1.0 | % | $ | 27,053 | 3.2 | % | 28 | ||||||||||||||||
7 | Verizon Communications, Inc. |
29 | 378,463 | 2.1 | % | $ | 21,623 | 2.6 | % | 75 | ||||||||||||||||
8 | AT & T |
17 | 615,267 | 3.4 | % | $ | 18,674 | 2.2 | % | 76 | ||||||||||||||||
9 | NTT Communications Company |
5 | 309,759 | 1.7 | % | $ | 17,447 | 2.1 | % | 84 | ||||||||||||||||
10 | Level 3 Communications, LLC |
31 | 375,223 | 2.1 | % | $ | 14,982 | 1.8 | % | 97 | ||||||||||||||||
11 | Amazon |
6 | 448,895 | 2.5 | % | $ | 12,902 | 1.5 | % | 104 | ||||||||||||||||
12 | Pfizer, Inc. |
1 | 87,049 | 0.5 | % | $ | 11,201 | 1.3 | % | 66 | ||||||||||||||||
13 | TATA Communications (UK) |
2 | 105,366 | 0.6 | % | $ | 10,534 | 1.2 | % | 66 | ||||||||||||||||
14 | JPMorgan Chase & Co. |
3 | 170,085 | 1.0 | % | $ | 10,452 | 1.2 | % | 107 | ||||||||||||||||
15 | Yahoo! Inc. |
2 | 110,847 | 0.6 | % | $ | 10,397 | 1.2 | % | 64 | ||||||||||||||||
16 | Sprint Communications Co., LP |
6 | 173,319 | 1.0 | % | $ | 9,704 | 1.1 | % | 27 | ||||||||||||||||
17 | BT Americas, Inc. |
3 | 67,685 | 0.4 | % | $ | 9,698 | 1.1 | % | 60 | ||||||||||||||||
18 | Microsoft Corporation |
3 | 322,587 | 1.8 | % | $ | 9,489 | 1.1 | % | 40 | ||||||||||||||||
19 | T-Systems North America, Inc. |
2 | 77,610 | 0.4 | % | $ | 8,615 | 1.0 | % | 21 | ||||||||||||||||
20 | Internap |
4 | 52,155 | 0.3 | % | $ | 8,470 | 1.0 | % | 22 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total/Weighted Average |
8,013,635 | 44.9 | % | $ | 420,432 | 49.5 | % | 86 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Occupied square footage is defined as leases that commenced on or before June 30, 2012. For some of our properties, we calculate occupancy based on factors in addition to contractually leased square feet, including available power, required support space and common area. |
(2) | Annualized base rent represents the monthly contractual base rent (defined as cash base rent before abatements) under existing leases as of June 30, 2012 multiplied by 12. |
(3) | Represents leases with Savvis Communications Corporation and Qwest Communications International Inc. (or affiliates thereof), which are our direct tenants. CenturyLink, Inc. acquired Qwest in Q2 2011 and Savvis in Q3 2011, and Qwest and Savvis are now wholly owned subsidiaries of CenturyLink. |
Page 22
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Lease Expirations and Lease Distribution
Lease Expirations
As of June 30, 2012
(Dollar amounts in thousands)
Year |
Number of Leases Expiring (1) |
Square Footage of Expiring Leases (2) |
Percentage of Net Rentable Square Feet (2) |
Annualized Rent (3) |
Percentage of Annualized Rent |
Annualized Rent Per Occupied Square Foot |
Annualized Rent Per Occupied Square Foot at Expiration |
Annualized Rent at Expiration |
||||||||||||||||||||||||
Available |
1,166,348 | 6.5 | % | 0.0 | % | |||||||||||||||||||||||||||
2012 |
266 | 269,800 | 1.5 | % | $ | 27,745 | 3.3 | % | $ | 102.83 | $ | 106.13 | $ | 28,633 | ||||||||||||||||||
2013 |
272 | 835,724 | 4.7 | % | 61,622 | 7.3 | % | 73.73 | 75.84 | 63,377 | ||||||||||||||||||||||
2014 |
250 | 1,353,532 | 7.6 | % | 98,728 | 11.7 | % | 72.94 | 76.30 | 103,275 | ||||||||||||||||||||||
2015 |
166 | 2,401,291 | 13.4 | % | 84,239 | 10.0 | % | 35.08 | 37.75 | 90,650 | ||||||||||||||||||||||
2016 |
175 | 1,682,764 | 9.4 | % | 72,507 | 8.6 | % | 43.09 | 46.68 | 78,550 | ||||||||||||||||||||||
2017 |
107 | 1,249,282 | 7.0 | % | 53,430 | 6.3 | % | 42.77 | 47.57 | 59,434 | ||||||||||||||||||||||
2018 |
90 | 1,106,583 | 6.2 | % | 57,747 | 6.8 | % | 52.19 | 61.07 | 67,579 | ||||||||||||||||||||||
2019 |
88 | 1,685,982 | 9.4 | % | 106,566 | 12.6 | % | 63.21 | 75.39 | 127,110 | ||||||||||||||||||||||
2020 |
82 | 922,842 | 5.2 | % | 56,467 | 6.7 | % | 61.19 | 75.07 | 69,281 | ||||||||||||||||||||||
2021 |
62 | 1,036,692 | 5.8 | % | 53,504 | 6.3 | % | 51.61 | 68.71 | 71,228 | ||||||||||||||||||||||
Thereafter |
269 | 4,171,017 | 23.3 | % | 172,626 | 20.4 | % | 41.39 | 59.54 | 248,353 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Portfolio Total / Weighted Average |
1,827 | 17,881,857 | 100.0 | % | $ | 845,181 | 100.0 | % | $ | 50.56 | $ | 60.27 | $ | 1,007,470 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease Distribution
As of June 30, 2012
(Dollar amounts in thousands)
Square Feet Under Lease |
Number of Leases (1) |
Percentage of All Leases |
Total Net Rentable Square Feet (2) |
Percentage of Net Rentable Square Feet (2) |
Annualized Rent (3) |
Percentage
of Annualized Rent |
||||||||||||||||||
Available |
1,166,348 | 6.5 | % | | 0.0 | % | ||||||||||||||||||
2,500 or less |
1,161 | 63.5 | % | 522,695 | 2.9 | % | $ | 53,712 | 6.3 | % | ||||||||||||||
2,501 - 10,000 |
304 | 16.6 | % | 1,749,585 | 9.8 | % | 146,698 | 17.4 | % | |||||||||||||||
10,001 - 20,000 |
167 | 9.1 | % | 2,489,288 | 13.9 | % | 195,924 | 23.2 | % | |||||||||||||||
20,001 - 40,000 |
100 | 5.5 | % | 2,891,839 | 16.2 | % | 171,781 | 20.3 | % | |||||||||||||||
40,001 - 100,000 |
63 | 3.5 | % | 4,176,714 | 23.4 | % | 163,778 | 19.4 | % | |||||||||||||||
Greater than 100,000 |
32 | 1.8 | % | 4,885,388 | 27.3 | % | 113,288 | 13.4 | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Portfolio Total |
1,827 | 100.0 | % | 17,881,857 | 100.0 | % | $ | 845,181 | 100.0 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Includes license and similar agreements that upon expiration will be automatically renewed, mostly on a month-to-month basis. Number of leases represents the leased-unit count; a lease could include multiple units. |
(2) | For some of our properties, we calculate square footage based on factors in addition to contractually leased square feet, including available power, required support space and common area. |
(3) | Annualized rent represents the monthly contractual base rent (defined as cash base rent before abatements) under existing leases as of June 30, 2012 multiplied by 12. We estimate the total net rentable square feet available for lease based on a number of factors in addition to contractually leased square feet, including available power, required support space and common area. |
Page 23
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Lease Expirations - By Product Type
As of June 30, 2012
(Dollar amounts in thousands)
TURN-KEY FLEX
Year |
Number of Leases Expiring (1) |
Square Footage of Expiring Leases (2) |
Percentage of Net Rentable Square Feet (2) |
Annualized Rent (3) |
Percentage of Annualized Rent |
Annualized Rent Per Occupied Square Foot |
Annualized Rent Per Occupied Square Foot at Expiration |
Annualized Rent at Expiration |
||||||||||||||||||||||||
Available |
389,649 | 2.2 | % | | 0.0 | % | ||||||||||||||||||||||||||
2012 |
106 | 86,248 | 0.5 | % | $ | 12,877 | 1.5 | % | $ | 149.30 | $ | 151.93 | $ | 13,104 | ||||||||||||||||||
2013 |
87 | 289,639 | 1.6 | % | 37,535 | 4.4 | % | 129.59 | 134.16 | 38,858 | ||||||||||||||||||||||
2014 |
105 | 349,630 | 2.0 | % | 53,652 | 6.4 | % | 153.45 | 161.40 | 56,431 | ||||||||||||||||||||||
2015 |
45 | 168,457 | 0.9 | % | 20,874 | 2.5 | % | 123.91 | 131.36 | 22,129 | ||||||||||||||||||||||
2016 |
82 | 329,031 | 1.8 | % | 42,088 | 5.0 | % | 127.91 | 138.57 | 45,595 | ||||||||||||||||||||||
2017 |
37 | 295,429 | 1.7 | % | 30,055 | 3.6 | % | 101.73 | 114.88 | 33,938 | ||||||||||||||||||||||
2018 |
41 | 286,593 | 1.6 | % | 32,873 | 3.9 | % | 114.70 | 138.17 | 39,598 | ||||||||||||||||||||||
2019 |
32 | 439,647 | 2.5 | % | 64,379 | 7.6 | % | 146.43 | 176.31 | 77,514 | ||||||||||||||||||||||
2020 |
38 | 260,930 | 1.5 | % | 36,292 | 4.3 | % | 139.09 | 174.33 | 45,487 | ||||||||||||||||||||||
2021 |
35 | 246,023 | 1.4 | % | 36,714 | 4.4 | % | 149.23 | 204.93 | 50,418 | ||||||||||||||||||||||
Thereafter |
105 | 683,277 | 3.8 | % | 63,575 | 7.5 | % | 93.04 | 151.52 | 103,528 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Portfolio Total / Weighted Average |
713 | 3,824,553 | 21.5 | % | $ | 430,914 | 51.1 | % | $ | 125.45 | $ | 153.31 | $ | 526,600 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POWERED BASE BUILDING
Year |
Number of Leases Expiring (1) |
Square Footage of Expiring Leases (2) |
Percentage of Net Rentable Square Feet (2) |
Annualized Rent (3) |
Percentage of Annualized Rent |
Annualized Rent Per Occupied Square Foot |
Annualized Rent Per Occupied Square Foot at Expiration |
Annualized Rent at Expiration |
||||||||||||||||||||||||
Available |
252,777 | 1.4 | % | | 0.0 | % | ||||||||||||||||||||||||||
2012 |
11 | 18,040 | 0.1 | % | $ | 639 | 0.1 | % | $ | 35.42 | $ | 35.42 | $ | 639 | ||||||||||||||||||
2013 |
16 | 157,428 | 0.9 | % | 7,652 | 0.9 | % | 48.61 | 49.21 | 7,747 | ||||||||||||||||||||||
2014 |
36 | 699,130 | 3.9 | % | 28,892 | 3.4 | % | 41.33 | 43.24 | 30,233 | ||||||||||||||||||||||
2015 |
48 | 1,596,225 | 8.9 | % | 54,598 | 6.5 | % | 34.20 | 36.90 | 58,899 | ||||||||||||||||||||||
2016 |
37 | 1,141,207 | 6.4 | % | 25,562 | 3.0 | % | 22.40 | 24.23 | 27,655 | ||||||||||||||||||||||
2017 |
19 | 269,113 | 1.5 | % | 6,958 | 0.8 | % | 25.86 | 28.88 | 7,772 | ||||||||||||||||||||||
2018 |
13 | 571,579 | 3.2 | % | 19,801 | 2.3 | % | 34.64 | 38.79 | 22,169 | ||||||||||||||||||||||
2019 |
23 | 1,106,612 | 6.2 | % | 38,981 | 4.6 | % | 35.23 | 41.37 | 45,781 | ||||||||||||||||||||||
2020 |
16 | 376,882 | 2.1 | % | 13,330 | 1.6 | % | 35.37 | 44.18 | 16,650 | ||||||||||||||||||||||
2021 |
7 | 680,655 | 3.8 | % | 14,613 | 1.7 | % | 21.47 | 26.67 | 18,154 | ||||||||||||||||||||||
Thereafter |
97 | 2,742,071 | 15.3 | % | 93,264 | 11.0 | % | 34.01 | 46.22 | 126,746 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Portfolio Total / Weighted Average |
323 | 9,611,719 | 53.7 | % | $ | 304,290 | 35.9 | % | $ | 32.51 | $ | 38.73 | $ | 362,445 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLOCATION
Year |
Number of Leases Expiring (1) |
Square Footage of Expiring Leases (2) |
Percentage of Net Rentable Square Feet (2) |
Annualized Rent (3) |
Percentage of Annualized Rent |
Annualized Rent Per Occupied Square Foot |
Annualized Rent Per Occupied Square Foot at Expiration |
Annualized Rent at Expiration |
||||||||||||||||||||||||
Available |
68,282 | 0.4 | % | | 0.0 | % | ||||||||||||||||||||||||||
2012 |
78 | 82,012 | 0.5 | % | $ | 12,817 | 1.5 | % | $ | 156.28 | $ | 163.92 | $ | 13,443 | ||||||||||||||||||
2013 |
114 | 55,988 | 0.3 | % | 8,688 | 1.0 | % | 155.18 | 160.57 | 8,990 | ||||||||||||||||||||||
2014 |
52 | 56,963 | 0.3 | % | 11,611 | 1.4 | % | 203.83 | 209.94 | 11,959 | ||||||||||||||||||||||
2015 |
19 | 14,263 | 0.1 | % | 2,653 | 0.3 | % | 186.01 | 231.79 | 3,306 | ||||||||||||||||||||||
2016 |
5 | 4,572 | 0.0 | % | 894 | 0.1 | % | 195.54 | 216.54 | 990 | ||||||||||||||||||||||
2017 |
10 | 9,316 | 0.1 | % | 1,431 | 0.2 | % | 153.61 | 186.67 | 1,739 | ||||||||||||||||||||||
2018 |
| | 0.0 | % | | 0.0 | % | | | | ||||||||||||||||||||||
2019 |
3 | 7,127 | 0.0 | % | 504 | 0.1 | % | 70.72 | 98.08 | 699 | ||||||||||||||||||||||
2020 |
1 | | 0.0 | % | 16 | 0.0 | % | | | 20 | ||||||||||||||||||||||
2021 |
1 | 3,194 | 0.0 | % | 276 | 0.0 | % | 86.41 | 113.34 | 362 | ||||||||||||||||||||||
Thereafter |
10 | 140,870 | 0.8 | % | 5,287 | 0.6 | % | 37.53 | 41.85 | 5,895 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Portfolio Total / Weighted Average |
293 | 442,587 | 2.5 | % | $ | 44,177 | 5.2 | % | $ | 118.02 | $ | 126.64 | $ | 47,403 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-TECHNICAL
Year |
Number of Leases Expiring (1) |
Square Footage of Expiring Leases (2) |
Percentage of Net Rentable Square Feet (2) |
Annualized Rent (3) |
Percentage
of Annualized Rent |
Annualized Rent Per Occupied Square Foot |
Annualized Rent Per Occupied Square Foot at Expiration |
Annualized Rent at Expiration |
||||||||||||||||||||||||
Available |
455,640 | 2.5 | % | | 0.0 | % | ||||||||||||||||||||||||||
2012 |
71 | 83,500 | 0.5 | % | $ | 1,412 | 0.2 | % | $ | 16.91 | $ | 17.33 | $ | 1,447 | ||||||||||||||||||
2013 |
55 | 332,669 | 1.9 | % | 7,747 | 0.9 | % | 23.29 | 23.40 | 7,783 | ||||||||||||||||||||||
2014 |
57 | 247,809 | 1.4 | % | 4,574 | 0.5 | % | 18.46 | 18.77 | 4,652 | ||||||||||||||||||||||
2015 |
54 | 622,346 | 3.5 | % | 6,114 | 0.7 | % | 9.82 | 10.15 | 6,316 | ||||||||||||||||||||||
2016 |
51 | 207,954 | 1.2 | % | 3,963 | 0.5 | % | 19.06 | 20.72 | 4,309 | ||||||||||||||||||||||
2017 |
41 | 675,424 | 3.8 | % | 14,985 | 1.8 | % | 22.19 | 23.67 | 15,985 | ||||||||||||||||||||||
2018 |
36 | 248,411 | 1.4 | % | 5,074 | 0.6 | % | 20.43 | 23.39 | 5,811 | ||||||||||||||||||||||
2019 |
30 | 132,596 | 0.7 | % | 2,703 | 0.3 | % | 20.39 | 23.50 | 3,116 | ||||||||||||||||||||||
2020 |
27 | 285,030 | 1.6 | % | 6,829 | 0.8 | % | 23.96 | 24.99 | 7,124 | ||||||||||||||||||||||
2021 |
19 | 106,820 | 0.6 | % | 1,902 | 0.2 | % | 17.81 | 21.48 | 2,294 | ||||||||||||||||||||||
Thereafter |
57 | 604,799 | 3.2 | % | 10,497 | 1.3 | % | 17.36 | 20.15 | 12,185 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Portfolio Total / Weighted Average |
498 | 4,002,998 | 22.3 | % | $ | 65,800 | 7.8 | % | $ | 18.55 | $ | 20.02 | $ | 71,022 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Includes license and similar agreements that upon expiration will be automatically renewed, mostly on a month-to-month basis. Number of leases represents the leased-unit count; a lease could include multiple units. |
(2) | For some of our properties, we calculate square footage based on factors in addition to contractually leased square feet, including available power, required support space and common area. |
(3) | Annualized rent represents the monthly contractual base rent (defined as cash base rent before abatements) under existing leases as of June 30, 2012 multiplied by 12. We estimate the total net rentable square feet available for lease based on a number of factors in addition to contractually leased square feet, including available power, required support space and common area. |
Page 24
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Summary of Leasing Activity
Leases Signed in the Quarter Ended June 30, 2012
Number of Leases (1) |
Rentable Square Feet (2) |
Expiring Rates (3) |
New Rates (3) | Rental
Rate Changes |
TIs/Lease Commissions Per Square Foot (5) |
Weighted Average Lease Terms (months) |
||||||||||||||||||||||
Leasing Activity (4)(5) |
||||||||||||||||||||||||||||
Renewals Signed |
||||||||||||||||||||||||||||
Turn-Key Flex |
8 | 87,116 | $ | 139.70 | $ | 153.58 | 9.9 | % | $ | 0.63 | 87.7 | |||||||||||||||||
Powered Base Building |
7 | 243,818 | $ | 29.88 | $ | 36.71 | 22.9 | % | $ | 17.65 | 124.2 | |||||||||||||||||
Non-technical |
5 | 8,819 | $ | 39.80 | $ | 46.35 | 16.4 | % | $ | 14.39 | 131.5 | |||||||||||||||||
New Leases Signed |
||||||||||||||||||||||||||||
Turn-Key Flex |
20 | 188,947 | | $ | 160.02 | | $ | 61.92 | 116.1 | |||||||||||||||||||
Powered Base Building |
1 | 5,226 | | $ | 31.64 | | $ | 19.49 | 120.2 | |||||||||||||||||||
Non-technical |
14 | 16,410 | | $ | 38.01 | | $ | 9.99 | 100.1 | |||||||||||||||||||
Leasing Activity Summary (4)(5) |
||||||||||||||||||||||||||||
Turn-Key Flex |
28 | 276,063 | | $ | 157.99 | | | |||||||||||||||||||||
Powered Base Building |
8 | 249,044 | | $ | 36.61 | | | |||||||||||||||||||||
Non-technical |
19 | 25,229 | | $ | 40.93 | | |
(1) | The number of leases represents the leased-unit count; a lease could include multiple units. |
(2) | For some of our properties, we calculate square footage based on factors in addition to contractually leased square feet, including power, required support space and common area. |
(3) | Rental rates represent annual estimated cash rent per rentable square foot adjusted for straight line rents in accordance with GAAP rent. |
(4) | Excludes short term, roof and garage leases. |
(5) | Excludes 12 renewed colocation leases for 11,352 rentable square feet at an average GAAP rental rate of $173.39 per square foot and 18 new colocation leases for 3,660 rentable square feet at an average GAAP rental rate of $297.85 per square foot. |
Page 25
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Summary of Leasing Activity
Leases Commenced in the Quarter Ended June 30, 2012
Number of Leases (1) |
Rentable Square Feet (2) |
Expiring Rates (3) |
New Rates (3) | Rental
Rate Changes |
TIs/Lease Commissions Per Square Foot (5) |
Weighted Average Lease Term (months) |
||||||||||||||||||||||
Leasing Activity (4)(5) |
||||||||||||||||||||||||||||
Renewals Commenced |
||||||||||||||||||||||||||||
Turn-Key Flex |
8 | 87,116 | $ | 139.70 | $ | 153.58 | 9.9 | % | $ | 0.63 | 87.7 | |||||||||||||||||
Powered Base Building |
7 | 243,818 | $ | 29.88 | $ | 36.71 | 22.9 | % | $ | 17.65 | 124.2 | |||||||||||||||||
Build to Suit |
0 | | $ | 0.00 | $ | 0.00 | 0.0 | % | $ | 0.00 | ||||||||||||||||||
Non-technical |
7 | 43,887 | $ | 20.21 | $ | 20.33 | 0.6 | % | $ | 9.69 | 122.3 | |||||||||||||||||
New Leases Commenced |
||||||||||||||||||||||||||||
Turn-Key Flex |
24 | 158,235 | | $ | 163.03 | | $ | 35.81 | 119.6 | |||||||||||||||||||
Powered Base Building |
0 | | | $ | 0.00 | | $ | 0.00 | ||||||||||||||||||||
Build to Suit |
1 | 40,000 | | $ | 62.22 | $ | 3.60 | 180.6 | ||||||||||||||||||||
Non-technical |
11 | 11,114 | | $ | 34.91 | | $ | 3.88 | 118.4 | |||||||||||||||||||
Leasing Activity Summary (4)(5) |
||||||||||||||||||||||||||||
Turn-Key Flex |
32 | 245,351 | | $ | 159.68 | | | |||||||||||||||||||||
Powered Base Building |
7 | 243,818 | | $ | 36.71 | | | |||||||||||||||||||||
Build to Suit |
1 | 40,000 | | $ | 62.22 | | | |||||||||||||||||||||
Non-technical |
18 | 55,001 | | $ | 23.28 | | |
(1) | The number of leases represents the leased-unit count; a lease could include multiple units. |
(2) | For some of our properties, we calculate square footage based on factors in addition to contractually leased square feet, including power, required support space and common area. |
(3) | Rental rates represent annual estimated cash rent per rentable square foot adjusted for straight line rents in accordance with GAAP rent. |
(4) | Excludes short term, roof and garage leases. |
(5) | Excludes 14 renewed colocation leases for 10,694 rentable square feet at an average GAAP rental rate of $158.88 per square foot and 19 new colocation leases for 7,204 rentable square feet at an average GAAP rental rate of $236.01 per square foot. |
Page 26
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Historical Capital Expenditures
Three Months Ended | ||||||||||||||||||||||||
6/30/2012 | 3/31/2012 | 12/31/2011 | 9/30/2011 | 6/30/2011 | 3/31/2011 | |||||||||||||||||||
Recurring capital expenditures (1) |
$ | 9,229,000 | $ | 6,754,000 | $ | 9,926,000 | $ | 8,000,000 | $ | 7,263,000 | $ | 3,716,000 | ||||||||||||
Non-recurring capital expenditures (2) |
$ | 187,055,000 | $ | 167,360,000 | $ | 132,159,000 | $ | 176,560,000 | $ | 144,756,000 | $ | 119,971,000 | ||||||||||||
Total net rentable square feet at period end excluding redevelopment space (3) |
17,881,857 | 16,923,054 | 15,908,059 | 15,262,859 | 14,967,288 | 14,628,267 |
(1) | Recurring capital expenditures represent non-incremental building improvements required to maintain current revenues along with leasing commissions. Recurring capital expenditures do not include acquisition capital that was taken into consideration when underwriting the purchase of a building or which are incurred to bring a building up to operating standard. |
(2) | These expenditures are primarily for development and redevelopment projects. In addition these expenditures include certain infrequent expenditures for capitalized replacement, repair, maintenance, or other projects which enhance the existing operating portfolio (e.g. electrical and mechanical upgrades including battery replacement, building upgrades). |
(3) | For some of our properties, we calculate square footage based on factors in addition to contractually leased square feet, including available power, required support space and common area. |
Page 27
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Construction Activity Report
As of June 30, 2012
(in square feet unless otherwise noted)
Construction in Progress by Market
Construction in Progress (CIP) | ||||||||||||||||||||||||||||
Market |
Redevelopment Inventory Under Construction |
Development Inventory Under Construction |
Redevelopment Inventory Pre- Construction |
Total Construction In Progress |
Space Held for Future Redevelopment |
Total Inventory | Percentage Leased (1) |
|||||||||||||||||||||
Austin |
74,962 | | | 74,962 | | 74,962 | 0.0 | % | ||||||||||||||||||||
Boston |
| 130,335 | 14,097 | 144,432 | 86,309 | 230,741 | 0.0 | % | ||||||||||||||||||||
Chicago |
| | 117,515 | 117,515 | 23,894 | 141,409 | 0.0 | % | ||||||||||||||||||||
Dallas |
46,750 | 354,988 | | 401,738 | 632,439 | 1,034,177 | 15.4 | % | ||||||||||||||||||||
Houston |
| | | | 18,222 | 18,222 | 0.0 | % | ||||||||||||||||||||
New York Metro |
| 70,300 | 81,574 | 151,874 | 161,926 | 313,800 | 6.5 | % | ||||||||||||||||||||
Northern Virginia |
32,926 | 279,000 | | 311,926 | 49,858 | 361,784 | 18.0 | % | ||||||||||||||||||||
Philadelphia |
| | | | 62,463 | 62,463 | 0.0 | % | ||||||||||||||||||||
Phoenix |
48,385 | | | 48,385 | 132,439 | 180,824 | 0.0 | % | ||||||||||||||||||||
Portland |
| 58,000 | | 58,000 | | 58,000 | 100.0 | % | ||||||||||||||||||||
Sacramento |
| | 23,397 | 23,397 | | 23,397 | 0.0 | % | ||||||||||||||||||||
San Francisco |
| | | | 18,522 | 18,522 | 0.0 | % | ||||||||||||||||||||
Silicon Valley |
150,000 | | | 150,000 | | 150,000 | 0.0 | % | ||||||||||||||||||||
St. Louis |
9,732 | | 42,996 | 52,728 | 110,910 | 163,638 | 0.0 | % | ||||||||||||||||||||
Melbourne, Australia |
| 54,896 | | 54,896 | | 54,896 | 100.0 | % | ||||||||||||||||||||
Sydney, Australia |
| 86,218 | | 86,218 | | 86,218 | 8.3 | % | ||||||||||||||||||||
Paris, France |
| | | | 19,351 | 19,351 | 2.6 | % | ||||||||||||||||||||
London, England |
131,771 | | | 131,771 | | 131,771 | 0.0 | % | ||||||||||||||||||||
Singapore |
| | 20,697 | 20,697 | 66,009 | 86,706 | 23.9 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Grand Total |
494,526 | 1,033,737 | 300,276 | 1,828,539 | 1,382,342 | 3,210,881 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total US Markets |
362,755 | 892,623 | 279,579 | 1,534,957 | 1,296,982 | 2,831,939 | ||||||||||||||||||||||
Total Intl Markets |
131,771 | 141,114 | 20,697 | 293,582 | 85,360 | 378,942 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Percentage Leased (¹) |
9.5 | % | 30.7 | % | 6.9 | % | 21.1 | % | 0.0 | % | 12.0 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Construction in Progress by Product Type
US | Europe | Asia/Pacific | Total | % Leased (1) | ||||||||||||||||
Turn-Key FlexSM |
297,122 | 44,000 | 114,010 | 455,132 | 22.6 | % | ||||||||||||||
Powered Base Building® |
1,002,587 | 87,771 | 47,801 | 1,138,159 | 4.1 | % | ||||||||||||||
Build-to-Suit |
235,248 | | | 235,248 | 100.0 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Construction in Progress by Product Type |
1,534,957 | 131,771 | 161,811 | 1,828,539 | 21.1 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
Redevelopment Activity
US | Europe | Asia/Pacific | Total | % Leased (1) | ||||||||||||||||
Redevelopment Space as of March 31, 2012 |
1,929,708 | 151,617 | 107,878 | 2,189,203 | ||||||||||||||||
Acquired Redevelopment Space and New Construction Space |
176,896 | | | 176,896 | ||||||||||||||||
Converted Redevelopment Space: |
| |||||||||||||||||||
Turn-Key FlexSM |
(115,059 | ) | | (21,172 | ) | (136,231 | ) | 58.9 | % | |||||||||||
Powered Base Building® |
| | | | 0.0 | % | ||||||||||||||
Build-to-Suit |
(40,000 | ) | | | (40,000 | ) | 100.0 | % | ||||||||||||
Remeasurement Adjustments |
(12,229 | ) | (495 | ) | (12,724 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Redevelopment Space as of June 30, 2012 |
1,939,316 | 151,122 | 86,706 | 2,177,144 | ||||||||||||||||
|
|
|
|
|
|
|
|
(1) | Represents leases signed. |
Page 28
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Construction Projects in Progress and Total Estimated Direct Cost (1)
For the quarter ended June 30, 2012
(Dollar amounts in thousands except for cost per square foot)
Construction Projects in Progress and |
Base Building Improvement to Net Rentable Square Footage |
Net Rentable Square Footage |
Direct Project Cost
- Spent to Date |
Direct Project Cost - to Be Spent |
Direct Project Total Estimated Cost |
Direct Project Cost Per Net Rentable Square Foot |
||||||||||||||||||
Turn-Key Flex Under Construction as of June 30, 2012 (2) |
| 455,132 | $ | 75,946 | $ | 179,026 | $ | 254,972 | $ | 560 | ||||||||||||||
Build-to-Suit Under Construction as of June 30, 2012 (2) |
| 235,248 | 76,228 | 56,100 | 132,328 | $ | 563 | |||||||||||||||||
Powered Base Building Under Construction as of June 30, 2012 (2) |
| 1,138,159 | 62,824 | 141,734 | 204,558 | $ | 180 | |||||||||||||||||
Base Building Improvements to Current in Progress Space Under Construction |
| | 36,221 | 20,251 | 56,472 | | ||||||||||||||||||
Base Building Improvements to Support Future Development (3) |
647,294 | | 20,833 | 25,222 | 46,055 | $ | 71 | |||||||||||||||||
Base Building Improvements to Support Operating Portfolio (3) |
1,317,092 | | 36,594 | 19,699 | 56,293 | $ | 43 | |||||||||||||||||
Equipment Pool (4) |
| | 53,069 | | 53,069 | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
TOTAL |
1,964,386 | 1,828,539 | $ | 361,715 | $ | 442,032 | $ | 803,747 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Notes:
(1) | Includes direct project cash disbursements and project accruals; does not include capitalized costs (i.e. interest and general & administrative) or pro-rata acquisition cost. |
(2) | Represents suite-specific projects. |
(3) | Square footage represents square feet that will benefit from these base building improvements. |
(4) | Pool account; not job specific. |
Page 29
DIGITAL REALTY TRUST, INC.
Second Quarter 2012
Management Statements on Non-GAAP Supplemental Measures
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, impairment charges, 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 and after adjustments for unconsolidated partnerships and joint ventures, 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 capitalized leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our financial condition and 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 computed in accordance with GAAP 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, including on a per share and unit basis. We calculate AFFO by adding to or subtracting from FFO (i) non-real estate depreciation, (ii) amortization of deferred financing costs, (iii) amortization of debt discount, (iv) non-cash compensation, (v) loss from early extinguishment of debt, (vi) straight line rents, (vii) fair value of lease revenue amortization, (viii) capitalized leasing payroll, (ix) recurring tenant improvements, (x) capitalized leasing commissions and (xi) costs of redeeming our preferred stock. Other REITs may not calculate AFFO in a consistent manner. Accordingly, our AFFO may not be comparable to other REITs AFFO. AFFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.
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 investors to view our performance without the impact of non-cash depreciation and amortization or the cost of debt and, with respect to Adjusted EBITDA, preferred dividends and noncontrolling interests. Adjusted EBITDA is EBITDA excluding noncontrolling interests, preferred stock dividends and costs of redeeming our preferred stock. In addition, we believe EBITDA and Adjusted EBITDA are frequently used by securities analysts, investors and other interested parties in the evaluation of REITs. Because EBITDA and Adjusted EBITDA are calculated before recurring cash charges including interest expense and income taxes, exclude capitalized costs, such as leasing commissions, and are not adjusted for capital expenditures or other recurring cash requirements of our business, their utility as a measure of our performance is limited. Other REITs may calculate EBITDA and Adjusted EBITDA differently than we do; accordingly, our EBITDA and Adjusted EBITDA may not be comparable to such other REITs EBITDA and Adjusted EBITDA. Accordingly, EBITDA and Adjusted EBITDA should be considered only as supplements to net income computed in accordance with GAAP as a measure of our financial performance.
Net Operating Income (NOI):
Net operating income, or NOI, represents rental revenue and tenant reimbursement revenue less rental property operating and maintenance expenses, property taxes and insurance expenses (as reflected in the statement of operations). NOI is commonly used by stockholders, company management and industry analysts as a measurement of operating performance of the companys rental portfolio. However, because NOI 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 capitalized 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 as a measure of our performance is limited. Other REITs may not calculate NOI in the same manner we do and, accordingly, our NOI may not be comparable to such other REITs NOI. Accordingly, NOI should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.
Page 30
MT%!`,@7
M&N#=4]&=5=%7WZ=U587%C=D5:)&T:\<8WBK)!VL /CA
MD()*0H4IRF&S:]8VX`T:2"%6[Z7O(K&:]M+FQO([=M9FV\W,?$TD-SN:6MS1AQ#3
M)$9&-)%7`$%,]3XCG;?"/K.K*56FTYB__!EKC?)TL!`N)PS8'8P<2"361EY^
M72:*%6618M'`MDCD.L*93D$V3U3J.RTN[9IS8[F[U5\?,$%M'S9!'7+S'U+6
M1L+JM:Z1[/B&0\/+75M(U)TQ#'
M''+5<4ZLZ=;18:=21!0_H&P)
M00I<+Q',UYV!P*CC,\=RGXBL`M5_0$XY'9XE$WVYSC6)\N5T?3=>CAM\2$\1
M7#"#TIS&3(B`ESL4)DW3Q,/E@?9Y:KY<]B/ZN#'96D$)#)\4D9$!(S=,44MP
M_`G@W@/@/@&=>)+=P85UTMDF0S7$G+C,E,W+90.?(\-(
VB3?+_XOZ/YM7^ 3*Y65/@+N#KT'Q]WYM%>9"7"J;1`YL]`P.?
M(?/56NRNS# _5.8[L4?*Y&PGOTYCNQ,KDD4*3U!_)
MY>X/=IS'=BKE 1H><=RIE*0JD*0P``!
MC&?+VCJ9SF<0JY2FTR!A,;IXB/E[1^W3G,XA>#"":JRH@8`#`!X_9_+ISF<5
M3D!(%4#B?P\@\.O\NG.9Q"<@*T+8PAC!OS#J:+D]B >,Z]\UG8K3[8D8;53_#QTYK.(5KRLG:O@[,#D2Y
MP/V^&O7F`,`<%?%L
MA0W;,!Y9P(YZ:V@:=.QK72%OL_D6E7NH,G(;:AS7`XUP^HE-II8Y1P"I@]PF
MW>/O$ U)!DS;]IE`(8
M3&P0V2F$`+O*8,IX$#%'IU\M78[]LD)F#L!N42YMG6TK8W-J7`'#MQ5)Y0Q,
M9./Y!+^K7IUX6PMF!J'$CW*K;3,\L(H0$G/)F,;._P#/C^0-6OU$\"KODJ<$
M?B!A_P"VC^3`#J[YHJYY9JH.]SC*IA\?$0'V>[5B:Z.&/%5%L%8&0(4V-X],
M>9?M\QU9\T>*J+;%6E),I2"(8,.0Z")1#Q]PZ>:/%3_)L_$WX_#0JR>'DC
M,#281KXT6FMZ*DF5FZ-&IK9$OHJ/P2%H17<.-HG`V>FJ?J$(E$!?'SR*AM1F
MIQRUK3MHJBUN#$9PQ_EP:%V4Y0>&:E*]E4RJMU`-T+TP'\/#1TS7&I*\9'#<
MD1D#CN`0\1'V^W[->HWMSBI7IL9)H=B3J-CE`-O7/M_P!J9G9Q5SD,XE(SHF
MW#GQZ9\?9]@Z]"5H%`116W1N!HW$)"+<,?"(B;R#I^7R]FAE:12J\EC^"L*)
M"7&[(9SC]&?$->,S=SE3EOX).8`R(9]W\.FO0!(J"K#B]KB*!(ED0`GPB(CD
M.G^`->XQ1V)*JQSB:$)O41`1#=N#ITQ_.&K]1VJZDQD3?%@!VX'KD,XQI5O:
MJ).!/ZN<^_V?D#7IK6N-"2%Y>T.%"DZR9]P>'W0]OM'VZ]\J/\15ODM[4D,4
M^1#`>8>`ZO@M`I55Y3>U)%TC[2X`/'WAY?9KP^3*/#B@B;VJR5+I\70?=_@U
M;Y[N`5>2WB4C.0Q0,(8''AG/ZM7\X.*IRAVI,8%#8R0HXSJY$&/K4E.4.*2*
M%^,<]!Z=`\/`-7N7'Q/P3DCBD"@J;!W%``Z=<^\-7^8U.4.*2&`#8]VG,"KR
MAVJR?`;@]P_Q:Z;U34]8UB/1=7GFN]-O7&
M.5DKW2!M6N/.87D\N2$CF![:4#2#5I(2&GVQY1.WJ1E($J"5M7YK^2K]H,W1
M6=5E$_'J!Y:4@RKIJ)-)UZW(F@@Z`HJM$E%3)"10Q3E]:G81ZMUDRWO,QTX:
M7FDBJ0)3Y@Y&24H3&TU
Q#GU$R*H',8K5^<28,@`]0#`R-0
MA@U.S?97&80O+2
YP'[M2G=17Y@UE][IC7G+%/;W,H#
M&[&">,N+'4_>D:`>.'B'+6R5(ML[GG'&7,_
NGGV]0W9\]5S2URY757H.A
U9&
MU
[3S/:I?(/$)`J`>H;)0$>G7(^P/8.-1I9P7UQ3
MD'BK8F$H9#Q#W_D]FK?/':O<=OXQ56S+G#!P*(J%$-HY'($'[X!Y8'`:<\*3
MY<<%MKC6VT&%G(]U;Z0C9(LPF2<^M(N$561C9*+ENT,`-5B``Y,!A'(9QK2>
MJM)U74X'#3IPUSMU<1\%EM+N;*UE`G@+B#MX_%367[N>)XUBK&P;"Q*C&,#D
MB6#=@BQC3BV(4&T8U7$X%115$!'U1*8I,==<%NO37J2[G++BY\5:[?V+I]KU
M1HD5N&PP\N7#$CW[RJZWW7<93CAHWE#R5;6=-045,#(]
MM1W%(G4NAC9A7H.