EX-99.2 3 d528345dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

 

LOGO

Supplemental Operating and Financial Data

FIRST QUARTER: MARCH 31, 2013

This Supplemental Operating and Financial Data package is not an offer to sell or solicitation to buy securities of Digital Realty Trust, Inc.

Any offers to sell or solicitations to buy securities of Digital Realty Trust, Inc. shall be made only by means of a prospectus approved for that purpose.


DIGITAL REALTY TRUST, INC.

First Quarter 2013

 

     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   

Top 20 Tenants by Annualized Rent

     23   

Lease Expirations and Lease Distribution

     24   

Lease Expirations - By Product Type

     25   

Summary of Leasing Activity - Signed

     26   

Summary of Leasing Activity - Commenced

     27   

Historical Capital Expenditures

     28   

Construction Activity Report

     29   

Construction Projects in Progress and Total Estimated Direct Cost

     30   

Definitions

  

Management Statements on Non-GAAP Supplemental Measures

     31   

 

Page 2


DIGITAL REALTY TRUST, INC.

First Quarter 2013

 

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 development activity, projected construction costs and other forward-looking financial data. Such statements are based on management’s 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. government’s 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 developed properties or businesses;

 

   

the suitability of our properties and data center infrastructure, delays or disruptions in connectivity, failure of our physical infrastructure or services or availability of power;

 

   

risks related to joint venture investments, including as a result of our lack of control of such investments;

 

   

delays or unexpected costs in development 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 development;

 

   

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, 2012, 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.

First Quarter 2013

 

Corporate Information

Corporate Profile

Digital Realty Trust, Inc. owns, acquires, develops and manages technology-related real estate. The Company is focused on providing 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 March 31, 2013, the Company’s 122 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 22.7 million net rentable square feet, including approximately 2.6 million square feet of space held for development, Digital Realty’s portfolio is located throughout North America, Europe, Asia and Australia. For additional information, please visit the Company’s 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

Matt Miszewski: Senior Vice President, Sales

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

 

Baird   Bank of America Merrill Lynch   Barclays Capital   Canaccord Genuity   Cantor Fitzgerald   Citigroup   Deutsche Bank
Dave Rodgers   James Feldman   Ross Smotrich   Greg Miller   David Toti   Michael Bilerman  

Vincent Chao

(216) 737-7341   (646) 855-5808   (212) 526-2306   (212) 389-8128   (212) 915-1219   (212) 816-1685  

(212) 250-6799

      Eric Z. Chu   Evan Smith   Emmanuel Korchman  
      (212) 389-8129   (212) 915-1220   (212) 816-1382  
Evercore   Goldman Sachs   Green Street   ISI   Jefferies   JMP Securities   KeyBanc Capital Markets
Johnathan Schildkraut   Matthew Rand   John Stewart   Steve Sakwa   Omotayo Okusanya   William C. Marks   Jordan Sadler
(212) 497-0864   (212) 902-4227   (949) 640-8780   (212) 446-9462   (212) 336-7076   (415) 835-8944   (917) 368-2280
Robert Gutman   Andrew Rosivach   Eric Frankel   George Auerbach     Mitch Germain   Craig Mailman
(212) 497-0877   (212) 902-2796   (949) 640-8780   (212) 446-9459     (212) 906-3546   (917) 368-2316
Macquarie   MLV & Co.   Morgan Stanley   Raymond James   RBC Capital Markets   Stifel Nicolaus   UBS
Rob Stevenson   Jonathan M. Petersen   Paul Morgan   Paul D. Puryear   Jonathan Atkin   Todd Weller   Ross Nussbaum
(212) 231-8068   (646) 556-9185   (415) 576-2627   (727) 567-2253   (415) 633-8589   (443) 224-1305   (212) 713-2484
    Vance Edelson   William A. Crow     Ben Lowe   Gabriel Hilmoe
    (212) 761-0078   (727) 567-2594     (443) 224-1264   (212) 713-3876

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.

First Quarter 2013

 

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
Series G Preferred Stock (1):    DLRPRG

Note that symbols may vary by stock quote provider.

 

(1) Issued in April 2013.

Credit Ratings

 

Standard & Poors      
Corporate Credit Rating    BBB    (Stable Outlook)
Preferred Stock    BB+   
Moody’s      
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 Company’s 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 agency’s rating should be evaluated independently of any other agency’s 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 Realty’s common stock (DLR):

 

    1st Quarter
2013
    4th Quarter
2012
    3rd Quarter
2012
    2nd Quarter
2012
    1st Quarter
2012
 

High Price *

  $ 72.92      $ 70.16      $ 80.59      $ 76.04      $ 74.04   

Low Price *

  $ 62.75      $ 59.25      $ 66.70      $ 67.84      $ 65.00   

Closing Price, end of quarter *

  $ 66.91      $ 67.89      $ 69.85      $ 75.07      $ 73.97   

Average daily trading volume *

    1,420,527        1,389,261        1,215,760        1,073,521        1,026,947   

Indicated dividend per common share **

  $ 3.12      $ 2.92      $ 2.92      $ 2.92      $ 2.92   

Closing annual dividend yield, end of quarter

    4.7     4.3     4.2     3.9     3.9

Closing shares and units outstanding, end of quarter ***

    131,410,505        127,992,183        127,887,458        115,050,528        112,215,683   

Closing market value of shares and units outstanding (thousands), end of quarter

  $ 8,792,677      $ 8,689,389      $ 8,932,939      $ 8,636,843      $ 8,300,594   

 

* New York Stock Exchange trades only.
** On an annual basis.
*** As of March 31, 2013, the total number of shares and units includes 128,413,791 common stock, 1,509,814 common units held by third parties and 1,486,900 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 E and series F cumulative redeemable preferred stock upon certain change of control transactions.

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.

First Quarter 2013

 

Ownership Structure

As of March 31, 2013

 

LOGO

 

Partner

   # of Units (2)      % Ownership  

Digital Realty Trust, Inc.

     128,413,791         97.7

Cambay Tele.com, LLC (3)

     1,509,814         1.2

Directors, Executive Officers and Others

     1,486,900         1.1
  

 

 

    

 

 

 

Total

     131,410,505         100.0
  

 

 

    

 

 

 

 

(1) Reflects limited partnership interests held by our officers and directors in the form of common units, vested and unvested long-term incentive units and vested class C units and excludes all unexercised common stock options.
(2) The total number of units includes 128,413,791 common units, 1,509,814 common units held by third parties and 1,486,900 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 E and series F cumulative redeemable preferred stock upon certain change of control transactions.
(3) This third-party contributor received the common units (along with cash and our operating partnership’s 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.

First Quarter 2013

 

Key Quarterly Financial Data

(Unaudited and dollars in thousands, except per share data)

 

    31-Mar-13     31-Dec-12     30-Sep-12     30-Jun-12     31-Mar-12  

Shares and Units at End of Quarter

         

Common shares outstanding

    128,413,791        125,140,783        123,261,390        110,268,388        107,342,049   

Common units outstanding

    2,996,714        2,851,400        4,626,068        4,782,140        4,873,634   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total shares and operating partnership units

    131,410,505        127,992,183        127,887,458        115,050,528        112,215,683   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Enterprise Value

         

Market value of common equity (1)

  $ 8,792,677      $ 8,689,389      $ 8,932,939      $ 8,636,843      $ 8,300,594   

Liquidation value of preferred equity

    470,000        593,413        597,447        644,096        590,081   

Total debt at balance sheet carrying value

    4,682,124        4,278,565        4,080,073        3,400,212        3,271,848   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total enterprise value

  $ 13,944,801      $ 13,561,367      $ 13,610,459      $ 12,681,151      $ 12,162,523   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total debt/Total enterprise value

    33.6     31.5     30.0     26.8     26.9

Selected Balance Sheet Data

         

Investments in real estate (before depreciation)

  $ 9,011,433      $ 8,809,153      $ 8,430,710      $ 6,828,926      $ 6,511,710   

Total assets

    8,971,492        8,819,214        8,512,598        6,717,113        6,418,061   

Total liabilities

    5,589,544        5,320,830        4,985,042        3,978,929        3,785,077   

Selected Operating Data

         

Total operating revenues

  $ 358,370      $ 349,736      $ 342,479      $ 303,704      $ 283,148   

Total operating expenses

    259,784        255,098        245,404        215,255        197,232   

Interest expense

    48,078        40,350        41,047        37,681        38,030   

Net income

    51,681        55,895        56,921        53,968        49,263   

Net income available to common stockholders

    42,657        44,815        45,615        42,021        39,211   

Financial Ratios

         

EBITDA (2)

  $ 203,561      $ 192,893      $ 189,212      $ 170,211      $ 161,957   

Adjusted EBITDA (3)

  $ 212,585      $ 203,973      $ 200,518      $ 182,158      $ 172,009   

Cash interest expense (4)

  $ 56,163      $ 30,311      $ 54,517      $ 27,447      $ 53,876   

Fixed charges (5)

  $ 68,113      $ 43,829      $ 67,919      $ 42,646      $ 66,477   

Debt service coverage ratio (6)

    3.8x        6.7x        3.7x        6.6x        3.2x   

Fixed charge coverage ratio (7)

    3.1x        4.7x        3.0x        4.3x        2.6x   

Profitability Measures

         

Net income per common share - basic

  $ 0.34      $ 0.36      $ 0.37      $ 0.38      $ 0.37   

Net income per common share - diluted

  $ 0.34      $ 0.36      $ 0.37      $ 0.38      $ 0.36   

Funds From Operations (FFO) per diluted share and unit (8)

  $ 1.16      $ 1.16      $ 1.13      $ 1.09      $ 1.06   

Adjusted Funds From Operations (AFFO) per diluted share and unit (9)

  $ 0.93      $ 0.88      $ 0.88      $ 0.86      $ 0.86   

Dividends per share and common unit

  $ 0.78      $ 0.73      $ 0.73      $ 0.73      $ 0.73   

Diluted FFO payout ratio (10)

    67.5     63.0     64.8     67.1     69.1

Diluted AFFO payout ratio (9) (11)

    84.1     82.6     82.6     85.4     84.6

Portfolio Statistics

         

Buildings

    175        168        161        155        148   

Properties

    122        117        110        105        102   

Net rentable square feet, excluding development space and unconsolidated joint ventures

    20,158,840        19,488,757        18,922,065        17,881,857        16,923,054   

Square feet held for development (12)

    2,588,034        2,427,257        2,242,204        2,177,144        2,189,203   

Occupancy at end of quarter (13)

    94.0     94.4     94.2     93.5     94.8

Weighted average remaining lease term (years) (14)

    6.9        6.9        7.0        7.0        7.0   

Same store occupancy at end of quarter (13)(15)

    93.1     93.7     94.2     93.2     94.6

 

(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 E and series F cumulative redeemable preferred stock upon certain change of control transactions.
(2) EBITDA is calculated as earnings before interest, taxes, depreciation and amortization. For a discussion of EBITDA, see page 31. 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 31. 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 31. 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 31. 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) Development 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 development. 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, 2011.

 

Page 7


DIGITAL REALTY TRUST, INC.

First Quarter 2013

 

Consolidated Balance Sheets

(Dollars in thousands, except per share data)

 

     March 31, 2013     December 31, 2012  
     (unaudited)        

ASSETS

    

Investments in real estate

    

Land

   $ 679,803      $ 661,058   

Acquired ground leases

     13,137        13,658   

Buildings and improvements

     7,826,501        7,662,973   

Tenant improvements

     419,062        404,830   
  

 

 

   

 

 

 

Investments in real estate

     8,938,503        8,742,519   

Accumulated depreciation and amortization

     (1,288,440     (1,206,017
  

 

 

   

 

 

 

Net investments in properties

     7,650,063        7,536,502   

Investment in unconsolidated joint ventures

     72,930        66,634   
  

 

 

   

 

 

 

Net investments in real estate

     7,722,993        7,603,136   

Cash and cash equivalents

     42,130        56,281   

Accounts and other receivables, net of allowance for doubtful accounts of $4,709 and $3,609 as of March 31, 2013 and December 31, 2012, respectively

     177,951        168,286   

Deferred rent

     340,753        321,715   

Acquired above market leases, net

     59,079        65,055   

Acquired in place lease value and deferred leasing costs, net

     494,384        495,205   

Deferred financing costs, net

     33,393        30,621   

Restricted cash

     43,929        44,050   

Other assets

     56,880        34,865   
  

 

 

   

 

 

 

Total Assets

   $ 8,971,492      $ 8,819,214   
  

 

 

   

 

 

 

LIABILITIES AND EQUITY

    
  

 

 

   

 

 

 

Global revolving credit facility

   $ 546,649      $ 723,729   

Unsecured term loan

     747,830        757,839   

Unsecured senior notes, net of discount

     2,341,972        1,738,221   

Exchangeable senior debentures

     266,400        266,400   

Mortgage loans, net of premiums

     779,273        792,376   

Accounts payable and other accrued liabilities

     613,537        646,427   

Accrued dividends and distributions

     —          93,434   

Acquired below market leases, net

     141,257        148,233   

Security deposits and prepaid rents

     152,626        154,171   
  

 

 

   

 

 

 

Total Liabilities

     5,589,544        5,320,830   
  

 

 

   

 

 

 

Commitments and contingencies

     —          —     

EQUITY:

    

Stockholders’ equity:

    

Preferred Stock: $0.01 par value per share, 30,000,000 shares authorized:

    

Series D Cumulative Convertible Preferred Stock, 5.500%, $0 and $123,413 liquidation preference, respectively ($25.00 per share), 0 and 4,936,505 shares issued and outstanding as of March 31, 2013 and December 31, 2012, respectively

     —          119,348   

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 March 31, 2013 and December 31, 2012, respectively

     277,172        277,172   

Series F Cumulative Redeemable Preferred Stock, 6.625%, $182,500 and $182,500 liquidation preference, respectively ($25.00 per share), 7,300,000 and 7,300,000 shares issued and outstanding as of March 31, 2013 and December 31, 2012, respectively

     176,191        176,191   

Common Stock: $0.01 par value per share, 165,000,000 shares authorized, 128,413,791 and 125,140,783 shares issued and outstanding as of March 31, 2013 and December 31, 2012, respectively

     1,279        1,247   

Additional paid-in capital

     3,677,070        3,562,642   

Dividends in excess of earnings

     (713,612     (656,104

Accumulated other comprehensive income, net

     (72,473     (12,191
  

 

 

   

 

 

 

Total stockholders’ equity

     3,345,627        3,468,305   
  

 

 

   

 

 

 

Noncontrolling interests:

    

Noncontrolling interest in operating partnership

     30,186        24,135   

Noncontrolling interest in consolidated joint ventures

     6,135        5,944   
  

 

 

   

 

 

 

Total noncontrolling interests

     36,321        30,079   
  

 

 

   

 

 

 

Total Equity

     3,381,948        3,498,384   
  

 

 

   

 

 

 

Total Liabilities and Equity

   $ 8,971,492      $ 8,819,214   
  

 

 

   

 

 

 

 

Page 8


DIGITAL REALTY TRUST, INC.

First Quarter 2013

 

Consolidated Quarterly Statements of Operations

(unaudited and in thousands, except share and per share data)

 

     Three Months Ended  
     31-Mar-13     31-Dec-12     30-Sep-12     30-Jun-12     31-Mar-12  

Rental

   $ 281,399      $ 272,906      $ 260,052      $ 234,923      $ 222,834   

Tenant reimbursements

     75,917        75,147        78,878        60,422        57,862   

Construction management

     806        1,525        2,497        1,954        2,452   

Other

     248        158        1,052        6,405        —      
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating revenues

     358,370        349,736        342,479        303,704        283,148   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Rental property operating and maintenance

     106,780        106,095        106,660        87,576        79,845   

Property taxes

     21,042        19,682        17,982        15,769        16,042   

Insurance

     2,205        2,647        2,463        2,260        2,230   

Construction management

     384        184        623        596        193   

Depreciation and amortization

     111,623        107,718        101,840        89,000        83,995   

General and administrative

     15,951        13,441        14,409        15,109        14,250   

Transactions

     1,763        5,331        504        4,608        677   

Other

     36        —           923        337        —      
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     259,784        255,098        245,404        215,255        197,232   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     98,586        94,638        97,075        88,449        85,916   

Equity in earnings of unconsolidated joint ventures

     2,335        1,733        1,520        3,493        1,389   

Interest and other income

     41        (116     83        1,216        709   

Interest expense

     (48,078     (40,350     (41,047     (37,681     (38,030

Tax expense

     (1,203     (10     (710     (1,206     (721

Loss from early extinguishment of debt

     —           —           —           (303     —      
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     51,681        55,895        56,921        53,968        49,263   

Net income attributable to noncontrolling interests

     (970     (1,329     (1,529     (1,634     (1,221
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Digital Realty Trust, Inc.

     50,711        54,566        55,392        52,334        48,042   

Preferred stock dividends

     (8,054     (9,751     (9,777     (10,313     (8,831
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income available to common stockholders

   $ 42,657      $ 44,815      $ 45,615      $ 42,021      $ 39,211   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income per share available to common stockholders - basic

   $ 0.34      $ 0.36      $ 0.37      $ 0.38      $ 0.37   

Net income per share available to common stockholders - diluted

   $ 0.34      $ 0.36      $ 0.37      $ 0.38      $ 0.36   

Weighted-average shares outstanding - basic

     126,445,285        123,824,957        122,026,421        109,761,017        107,099,856   

Weighted-average shares outstanding - diluted

     126,738,339        124,145,590        122,353,511        110,166,082        107,584,856   

Weighted-average fully diluted shares and units

     129,181,095        127,835,847        126,569,841        114,505,563        111,917,822   

 

Page 9


DIGITAL REALTY TRUST, INC.

First Quarter 2013

 

Funds From Operations (FFO)

(unaudited and in thousands, except per share data)

 

     Three Months Ended  
     31-Mar-13     31-Dec-12     30-Sep-12     30-Jun-12     31-Mar-12  

Reconciliation of net income available to common stockholders to FFO (Note):

          

Net income available to common stockholders

   $ 42,657      $ 44,815      $ 45,615      $ 42,021      $ 39,211   

Adjustments:

          

Noncontrolling interests in operating partnership

     824        1,336        1,574        1,661        1,586   

Real estate related depreciation and amortization (1)

     110,690        106,797        100,994        88,186        82,993   

Real estate related depreciation and amortization related to investment in unconsolidated joint ventures

     833        727        710        866        905   

Gain on sale of assets held in unconsolidated joint venture

     —           —           —           (2,325     —      
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

FFO available to common stockholders and unitholders

   $ 155,004      $ 153,675      $ 148,893      $ 130,409      $ 124,695   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

FFO per share and unit:

          

Basic

   $ 1.20      $ 1.21      $ 1.18      $ 1.14      $ 1.12   

Diluted (2)

   $ 1.16      $ 1.16      $ 1.13      $ 1.09      $ 1.06   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average shares and units outstanding - basic

     128,888        127,515        126,243        114,100        111,433   

Weighted-average shares and units outstanding - diluted (2)

     137,680        137,510        137,304        125,824        125,482   

(1)     Real estate related depreciation and amortization was computed as follows:

       

Depreciation and amortization per income statement

   $ 111,623      $ 107,718      $ 101,840      $ 89,000      $ 83,995   

Non-real estate depreciation

     (933     (921     (846     (814     (1,002
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   $ 110,690      $ 106,797      $ 100,994      $ 88,186      $ 82,993   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(2)     At March 31, 2013, we had 0 series D convertible preferred shares outstanding, as a result of the redemption of all remaining shares on February 26, 2013, which calculates into 1,909 common shares on a weighted average basis for the three months ended March 31, 2013. For the three months ended March 31, 2013, we have excluded the effect of dilutive series E and series F preferred stock, as applicable, 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, as applicable, which we consider highly improbable; if included, the dilutive effect for the three months ended March 31, 2013 would be 7,161. In addition, we had a balance of $266,400 of 5.50% exchangeable senior debentures due 2029 that were exchangeable for 6,590 common shares on a weighted average basis for the three months ended March 31, 2013. 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

   $ 155,004      $ 153,675      $ 148,893      $ 130,409      $ 124,695   

Add: Series C convertible preferred dividends

     —           —           —           —           1,402   

Add: Series D convertible preferred dividends

     —           1,697        1,723        2,394        2,398   

Add: 5.50% exchangeable senior debentures interest expense

     4,050        4,050        4,050        4,050        4,050   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

FFO available to common stockholders and unitholders - diluted

   $ 159,054      $ 159,422      $ 154,666      $ 136,853      $ 132,545   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common stock and units outstanding

     128,888        127,515        126,243        114,100        111,433   

Add: Effect of dilutive securities (excl. series C & D convert. preferred stock & 5.50% debentures)

     293        321        327        405        485   

Add: Effect of dilutive series C convertible preferred stock

     —           —           —           489        2,785   

Add: Effect of dilutive series D convertible preferred stock

     1,909        3,143        4,219        4,374        4,337   

Add: Effect of dilutive 5.50% exchangeable senior debentures

     6,590        6,531        6,515        6,456        6,442   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common stock and units outstanding - diluted

     137,680        137,510        137,304        125,824        125,482   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Note: For a definition and discussion of FFO, see page 31.

Adjusted Funds From Operations (AFFO)

(unaudited and in thousands)

 

     Three Months Ended  
     31-Mar-13     31-Dec-12     30-Sep-12     30-Jun-12     31-Mar-12  

Reconciliation of FFO to AFFO (Note):

          

FFO available to common stockholders and unitholders

   $ 155,004      $ 153,675      $ 148,893      $ 130,409      $ 124,695   

Adjustments:

          

Non-real estate depreciation

     933        921        846        814        1,002   

Amortization of deferred financing costs

     2,431        2,359        2,328        1,799        2,214   

Amortization of debt discount

     605        340        260        250        247   

Non-cash compensation

     2,888        2,709        2,741        3,775        3,407   

Loss from early extinguishment of debt

     —           —           —           303        —      

Straight line rents

     (21,169     (20,004     (20,221     (19,649     (15,902

Above and below market rent amortization

     (3,045     (2,819     (2,333     (2,871     (2,239

Change in fair value of contingent consideration (3)

     1,300        (1,051     —           —           —      

Capitalized leasing compensation

     (3,453     (4,008     (3,847     (3,334     (3,913

Recurring capital expenditures and tenant improvements (4)

     (4,613     (6,272     (3,562     (6,128     (5,431

Capitalized leasing commissions (4)

     (7,272     (10,037     (9,493     (4,201     (3,607
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

AFFO available to common stockholders and unitholders

   $ 123,609      $ 115,813      $ 115,612      $ 101,167      $ 100,473   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(3) Relates to earn-out contingency in connection with Sentrum Portfolio acquisition.
(4) 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 31. For a reconciliation of net income available to common stockholders to FFO, see above table.

 

Page 10


DIGITAL REALTY TRUST, INC.

First Quarter 2013

 

Reconciliation of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (1)

(unaudited and in thousands)

 

     Three Months Ended  
     31-Mar-13      31-Dec-12      30-Sep-12      30-Jun-12      31-Mar-12  

Net income available to common stockholders

   $ 42,657       $ 44,815       $ 45,615       $ 42,021       $ 39,211   

Interest

     48,078         40,350         41,047         37,681         38,030   

Loss from early extinguishment of debt

     —           —           —           303         —     

Taxes

     1,203         10         710         1,206         721   

Depreciation and amortization

     111,623         107,718         101,840         89,000         83,995   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

EBITDA

     203,561         192,893         189,212         170,211         161,957   

Noncontrolling interests

     970         1,329         1,529         1,634         1,221   

Preferred stock dividends

     8,054         9,751         9,777         10,313         8,831   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA

   $ 212,585       $ 203,973       $ 200,518       $ 182,158       $ 172,009   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) For the definition and discussion of EBITDA and Adjusted EBITDA, see page 31. EBITDA and Adjusted EBITDA for the three months ended June 30, 2012 include a gain on sale of 700 / 750 Central Expressway, held through 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)

 

    31-Mar-13     31-Dec-12     30-Sep-12     30-Jun-12     31-Mar-12  

Total GAAP interest expense

  $ 48,078      $ 40,350      $ 41,047      $ 37,681      $ 38,030   

Capitalized interest

    5,343        7,833        4,496        4,602        4,526   

Change in accrued interest and other non-cash amounts

    2,742        (17,872     8,974        (14,836     11,320   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash interest expense (a)

    56,163        30,311        54,517        27,447        53,876   

Scheduled debt principal payments and preferred dividends

    11,950        13,518        13,402        15,199        12,601   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed charges (b)

  $ 68,113      $ 43,829      $ 67,919      $ 42,646      $ 66,477   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Debt service coverage ratio based on GAAP interest expense (c)

    4.4x        5.1x        4.9x        4.8x        4.5x   

Debt service coverage ratio based on cash interest expense (d)

    3.8x        6.7x        3.7x        6.6x        3.2x   

Fixed charge coverage ratio based on GAAP interest expense (e)

    3.5x        3.8x        3.7x        3.4x        3.4x   

Fixed charge coverage ratio based on cash interest expense (f)

    3.1x        4.7x        3.0x        4.3x        2.6x   

Debt to total enterprise value including debt and preferred equity (g)

    33.6     31.5     30.0     26.8     26.9

Debt plus preferred stock to total enterprise value including debt and preferred equity (h)

    36.9     35.9     34.4     31.9     31.8

Pretax income to interest expense (i)

    2.1x        2.4x        2.4x        2.4x        2.3x   

Net Debt to Adjusted EBITDA (j)

    5.5x        5.2x        5.0x        4.6x        4.7x   

 

(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 GAAP interest expense.
(d) Adjusted EBITDA divided by cash interest expense.
(e) Adjusted EBITDA divided by the sum of GAAP interest expense, scheduled debt principal payments and preferred dividends.
(f) Adjusted EBITDA divided by fixed charges.
(g) 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.
(h) Same as (e), except numerator includes preferred stock.
(i) Calculated as net income, adding back interest expense and divided by GAAP interest expense.
(j) Calculated as total debt at balance sheet carrying value (see page 7) less unrestricted cash and cash equivalents divided by the product of Adjusted EBITDA multiplied by four.

 

Page 11


DIGITAL REALTY TRUST, INC.

First Quarter 2013

 

Same Store and New Properties Consolidated Quarterly Statements of Operations

(unaudited and in thousands)

 

     Three Months Ended  

Same store (1) 

   31-Mar-13     31-Dec-12     30-Sep-12     30-Jun-12     31-Mar-12  

Operating Revenues:

          

Rental

   $ 245,678      $ 237,932      $ 233,341      $ 229,875      $ 221,067   

Tenant reimbursements - Utilities

     42,525        41,736        47,127        40,726        36,879   

Tenant reimbursements - Other

     20,124        19,941        19,408        18,561        20,053   

Construction management (2)

     —          —          —          —          —     

Other

     248        158        1,052        6,405        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating revenues

     308,575        299,767        300,928        295,567        277,999   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating Expenses:

          

Rental property operating and maintenance - Utilities

     45,032        44,633        50,080        42,468        38,854   

Rental property operating and maintenance - Other

     47,083        49,344        44,614        43,246        40,335   

Property taxes

     18,695        17,249        16,589        15,428        15,925   

Insurance

     2,111        2,299        2,151        2,218        2,193   

Construction management (2)

     —          —          —          —          —     

Depreciation and amortization

     96,177        91,993        89,279        86,886        82,956   

General and administrative (3)

     15,951        13,441        14,409        15,109        14,250   

Transactions (4)

     —          —          —          —          —     

Other

     36        —          923        337        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     225,085        218,959        218,045        205,692        194,513   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     83,490        80,808        82,883        89,875        83,486   

Other Income (Expenses):

          

Equity in earnings of unconsolidated joint ventures

     2,346        1,743        1,531        3,493        1,389   

Interest and other income

     39        (118     (53     1,263        774   

Interest expense

     (42,007     (38,383     (39,208     (37,643     (38,030

Tax expense

     (831     310        (587     (1,083     (598

Loss from early extinguishment of debt

     —          —          —          (303     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 43,037      $ 44,360      $ 44,566      $ 55,602      $ 47,021   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

New properties (1) 

          
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating Revenues:

          

Rental

   $ 35,721      $ 34,974      $ 26,711      $ 5,048      $ 1,767   

Tenant reimbursements - Utilities

     8,720        8,349        8,999        1,205        499   

Tenant reimbursements - Other

     4,548        5,121        3,344        (70     431   

Construction management (2)

     806        1,525        2,497        1,954        2,452   

Other

     —          —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating revenues

     49,795        49,969        41,551        8,137        5,149   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating Expenses:

          

Rental property operating and maintenance - Utilities

     8,940        8,407        8,786        1,154        498   

Rental property operating and maintenance - Other

     5,725        3,711        3,180        708        158   

Property taxes

     2,347        2,433        1,393        341        117   

Insurance

     94        348        312        42        37   

Construction management (2)

     384        184        623        596        193   

Depreciation and amortization

     15,446        15,725        12,561        2,114        1,039   

General and administrative (3)

     —          —          —          —          —     

Transactions (4)

     1,763        5,331        504        4,608        677   

Other

     —          —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     34,699        36,139        27,359        9,563        2,719   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     15,096        13,830        14,192        (1,426     2,430   

Other Income (Expenses):

          

Equity in earnings of unconsolidated joint ventures

     (11     (10     (11     —          —     

Interest and other income

     2        2        136        (47     (65

Interest expense

     (6,071     (1,967     (1,839     (38     —     

Tax expense

     (372     (320     (123     (123     (123

Loss from early extinguishment of debt

     —          —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Income

   $ 8,644      $ 11,535      $ 12,355      $ (1,634   $ 2,242   

 

(1) Same store properties are properties that were acquired on or before December 31, 2011 and new properties are properties acquired after December 31, 2011.
(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.

First Quarter 2013

 

Same Store Operating Trend Summary

(unaudited and in thousands)

 

     Three Months Ended  

Same store (1) 

   31-Mar-13     31-Dec-12     Percentage
Change
    31-Mar-12     Percentage
Change
 

Rental (2)

   $ 245,678      $ 237,932        3.3   $ 221,067        11.1

Tenant reimbursements - Utilities

     42,525        41,736        1.9     36,879        15.3

Tenant reimbursements - Other

     20,124        19,941        0.9     20,053        0.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     308,327        299,609        2.9     277,999        10.9

Rental property operating and maintenance - Utilities

     45,032        44,633        0.9     38,854        15.9

Rental property operating and maintenance - Other

     47,083        49,344        (4.6 %)      40,335        16.7

Property taxes

     18,695        17,249        8.4     15,925        17.4

Insurance

     2,111        2,299        (8.2 %)      2,193        (3.7 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     112,921        113,525        (0.5 %)      97,307        16.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Operating Income (3)

   $ 195,406      $ 186,084        5.0   $ 180,692        8.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Same store occupancy at end of quarter (4)

     93.1     93.7     (0.6 %)      94.6     (1.5 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Same store properties were acquired on or before December 31, 2011.
(2) For the periods presented, same store straight-line rent was $18,528, $18,555 and $15,592, respectively, and non-cash purchase accounting adjustments were $2,215, $2,135, and $1,806, respectively.
(3) For a definition and discussion of Net Operating Income, see page 31.
(4) Occupancy excludes space held for development. 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.

First Quarter 2013

 

Consolidated Debt Analysis

(unaudited, in thousands)

 

     Maturity Date   Principal
Balance as of
March 31,
2013
    % of
Debt
    Interest
Rate as of
March 31,
2013
    Interest
Rate as of
March 31,
2013
including
swaps
 

Revolving Credit Facility

          

Global revolving credit facility

   November 2, 2016  (1)     546,649        11.7     2.00  
    

 

 

   

 

 

     
     $ 546,649        11.7    

Unsecured term loan:

          

Unsecured term loan

   April 16, 2017     747,830        16.0     1.95     2.33
    

 

 

   

 

 

     
     $ 747,830        16.0    

Unsecured senior notes:

          

Prudential Shelf Facility:

          

Series B

   November 5, 2013     33,000        0.7     9.32  

Series C

   January 6, 2016     25,000        0.5     9.68  

Series D

   January 20, 2015     50,000        1.1     4.57  

Series E

   January 20, 2017     50,000        1.1     5.73  

Series F

   February 3, 2015     17,000        0.4     4.50  
    

 

 

   

 

 

     

Total Prudential Shelf Facility

     $ 175,000        3.8    

Senior Notes:

          

4.50% notes due 2015

   July 15, 2015     375,000        8.0     4.50  

5.875% notes due 2020

   February 1, 2020     500,000        10.7     5.88  

5.25% notes due 2021

   March 15, 2021     400,000        8.5     5.25  

3.625% notes due 2022

   October 1, 2022     300,000        6.4     3.63  

4.25% notes due 2025

   January 17, 2025     607,920        13.0     4.25  

Unamortized discounts

       (15,948     -0.4    
    

 

 

   

 

 

     

Total senior notes

     $ 2,166,972        46.2    

Total unsecured senior notes

     $ 2,341,972        50.0    

Exchangeable senior debentures:

          

5.50% exchangeable senior debentures due 2029

   April 15, 2029     266,400        5.7     5.50  
    

 

 

   

 

 

     

Total exchangeable senior debentures

     $ 266,400        5.7    

Mortgage loans:

          

Paul van Vlissingenstraat 16

   July 18, 2013     12,904        0.3     1.81     5.58

Chemin de l’Epinglier 2

   July 18, 2013     9,337        0.2     1.71     5.57

1500 Space Park Drive

   October 5, 2013     35,104        0.7     6.15  

Gyroscoopweg 2E-2F

   October 18, 2013     8,217        0.2     1.71     5.49

360 Spear Street

   November 8, 2013     46,352        1.0     6.32  

Mundells Roundabout

   November 30, 2013     65,085        1.4     1.71     4.18

Clonshaugh Industrial Estate II

   September 4, 2014     38,457        0.8     4.71     7.20

Cressex 1

   October 16, 2014     26,586        0.6     5.68  

Manchester Technopark

   October 16, 2014     8,088        0.2     5.68  

Secured Term Debt

   November 11, 2014     135,225        2.9     5.65  

200 Paul Avenue 1-4

   October 8, 2015     72,159        1.5     5.74  

8025 North Interstate 35

   March 6, 2016     6,500        0.1     4.09  

600 West Seventh Street

   March 15, 2016     50,777        1.1     5.80  

34551 Ardenwood Boulevard 1-4

   November 11, 2016     52,718        1.1     5.95  

2334 Lundy Place

   November 11, 2016     38,342        0.8     5.96  

1100 Space Park Drive

   December 11, 2016     52,689        1.1     5.89  

2045 & 2055 LaFayette Street

   February 6, 2017     64,364        1.4     5.93  

150 South First Street

   February 6, 2017     50,640        1.1     6.30  

731 East Trade Street

   July 1, 2020     4,431        0.1     8.22  

Unamortized net premiums

       1,298        0.0    
    

 

 

   

 

 

     
     $ 779,273        16.6    

Total Consolidated Debt

     $ 4,682,124        100.0    
    

 

 

   

 

 

     

Weighted average cost of debt (including interest rate swaps)

          4.33
          

 

 

 

 

(1) Assumes all extensions will be exercised.

Global Revolving Credit Facility

(in thousands)

 

     Maximum Available as of
March 31, 2013
     Available as of
March 31, 2013 (2)
     Drawn as of
March 31, 2013
 

Global Revolving Credit Facility

   $ 1,800,000       $ 1,221,483       $ 546,649   

 

(2) Net of letters of credit issued.

 

Page 14


DIGITAL REALTY TRUST, INC.

First Quarter 2013

 

Debt Maturities

(unaudited, in thousands)

 

     2013      2014      2015      2016      2017      Thereafter      Total  

Unsecured term loan

   $ —         $ —         $ —         $ —         $ 747,830       $ —         $ 747,830   

4.25% notes due 2025

     —           —           —           —           —           607,920         607,920   

Global revolving credit facility (1)

     —           —           —           546,649         —           —           546,649   

5.875% notes due 2020

     —           —           —           —           —           500,000         500,000   

5.25% notes due 2021

     —           —           —           —           —           400,000         400,000   

4.50% notes due 2015

     —           —           375,000         —           —           —           375,000   

3.625% notes due 2022

     —           —           —           —           —           300,000         300,000   

5.50% exchangeable senior debentures due 2029 (2)

     —           266,400         —           —           —           —           266,400   

Prudential shelf facility senior notes

     33,000         —           67,000         25,000         50,000         —           175,000   

Secured Term Debt (3)

     2,259         132,966         —            —           —            —           135,225   

200 Paul Avenue 1-4

     1,445         2,048         68,666         —           —            —           72,159   

Mundells Roundabout

     65,085         —           —            —           —            —           65,085   

2045 & 2055 LaFayette Street

     741         1,060         1,125         1,195         60,243         —           64,364   

34551 Ardenwood Boulevard 1-4

     567         812         862         50,477         —            —           52,718   

1100 Space Park Drive

     574         821         871         50,423         —            —           52,689   

600 West Seventh Street

     1,229         1,723         1,825         46,000         —            —           50,777   

150 South First Street

     543         781         832         878         47,606         —           50,640   

360 Spear Street

     46,352         —           —           —           —           —           46,352   

Clonshaugh Industrial Estate II

     —           38,457         —           —           —           —           38,457   

2334 Lundy Place

     412         590         626         36,714         —           —           38,342   

1500 Space Park Drive

     35,104         —           —           —           —           —           35,104   

Cressex 1

     349         26,237         —           —           —           —           26,586   

Paul van Vlissingenstraat 16

     12,904         —           —           —           —           —           12,904   

Chemin de l’Epinglier 2

     9,337         —           —           —           —           —           9,337   

Gyroscoopweg 2E-2F

     8,217         —           —           —           —           —           8,217   

Manchester Technopark

     106         7,982         —           —           —           —           8,088   

8025 North Interstate 35

     186         257         268         5,789         —           —           6,500   

731 East Trade Street

     244         350         418         503         546         2,370         4,431   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 218,654       $ 480,484       $ 517,493       $ 763,628       $ 906,225       $ 1,810,290       $ 4,696,774   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Weighted Average Term to Initial Maturity (2)

        5.2 Years                  

Weighted Average Term to Initial Maturity (assuming exercise of extension options) (2)

        5.3 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.

Note: Total excludes $1,298 of loan premiums, net and ($4,512), ($6,355), ($551), ($751), and ($3,779) of debt discount on 4.25% unsecured senior notes due 2025, 5.875% unsecured senior notes due 2020, 4.50% unsecured senior notes due 2015, 5.25% unsecured senior notes due 2021, and 3.625% unsecured senior notes due 2022, respectively.

 

Page 15


DIGITAL REALTY TRUST, INC.

First Quarter 2013

 

Debt Analysis & Covenant Compliance

(unaudited)

 

Debt Covenant Ratios (1):

  

As of March 31, 2013

 
    

4.50% Notes due 2015,
5.875% Notes due 2020 &
5.25% Notes due 2021

    3.625% Notes
due 2022 &
4.250% Notes
due 2025
   

Global Revolving Credit Facility

 
    

Required

   Actual     Actual    

Required

   Actual  

Total Outstanding Debt / Total Assets (2)

   Less than 60%      46     43   Less than 60% (3)      39

Secured Debt / Total Assets (4)

   Less than 40%      8     7   Less than 40%      7

Total Unencumbered Assets / Unsecured Debt

   Greater than 150%      226     244        N/A   

Consolidated EBITDA / Interest Expense (5)

   Greater than 1.50x      3.7 x        3.7 x           N/A   

Fixed Charge Coverage

        N/A        N/A      Greater than 1.50x      3.4 x   

Unsecured Debt / Total Unencumbered Asset Value (6)

        N/A        N/A      Less than 60%      43

Unencumbered Assets Debt Service Coverage Ratio

        N/A        N/A      Greater than 1.50x      5.3 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 governs the 5.25% Notes due 2021; the Indenture and Supplemental Indenture No. 1 dated September 24, 2012, which governs the 3.625% Notes due 2022; the Indenture dated January 18, 2013, which governs the 4.250% Guaranteed Notes due 2025; and the Global Senior Credit Agreement dated as of November 3, 2011, which are filed as exhibits 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. 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 3.625% Notes due 2022 and 4.250% Guaranteed Notes due 2025, Total Assets is calculated using Consolidated EBITDA capped at 8.25%. Under the Global Revolving Credit Facility, 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 Facility 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.
(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.

 

Page 16


DIGITAL REALTY TRUST, INC.

First Quarter 2013

 

Portfolio Summary (1)

As of March 31, 2013

 

     3/31/2013     12/31/2012  

Number of Properties:

    

Domestic

     95        91   

International

     27        26   

Unconsolidated Joint Ventures

     3        3   
  

 

 

   

 

 

 
     125        120   

Number of Buildings:

    

Domestic

     144        138   

International

     31        30   

Unconsolidated Joint Ventures

     3        3   
  

 

 

   

 

 

 
     178        171   

Number of Markets:

    

Domestic

     20        20   

International

     10        10   

Unconsolidated Joint Ventures

     2        2   
  

 

 

   

 

 

 
     32        32   

Net Rentable Square Feet: (2)

    

Domestic

     17,371,366        16,774,252   

International

     2,787,474        2,714,505   

Unconsolidated Joint Ventures

     447,669        400,639   
  

 

 

   

 

 

 
     20,606,509        19,889,396   

Space Held for Development Square Feet:

    

Domestic

     2,182,779        2,068,832   

International

     405,255        358,425   

Unconsolidated Joint Ventures

     0        0   
  

 

 

   

 

 

 
     2,588,034        2,427,257   

Portfolio Occupancy (3)

     94.0     94.4

Same Store Pool Occupancy (3)

     93.1     93.7

 

(1) Includes properties held through three unconsolidated joint ventures: 2001 Sixth Avenue, Seattle; 2020 Fifth Avenue, Seattle; and 33 Chun Choi Street, Hong Kong.
(2) 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.
(3) Occupancy excludes space held for development. 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.

 

Note: 43940 Digital Loudoun Plaza - G, Northern Virginia is a completed development project built from land acquired in 2011. It has been added to our operating property count as of March 31, 2013.

 

Page 17


DIGITAL REALTY TRUST, INC.

First Quarter 2013

 

Properties Acquired

For the three months ended March 31, 2013

 

Property

  

Metropolitan Area

  Date Acquired   Purchase Price
(in millions)
    Net Rentable
Square
Feet  (1)
    Space Held For
Development
    Percentage of Total
Net Rentable Square
Feet Occupied (2)
 

1900 S. Price Road

  

Phoenix, Arizona

  Jan-13   $ 24.0        118,348        108,926        100.0

17201 Waterview Parkway

  

Dallas, Texas

  Jan-13   $ 8.5        61,750        —          100.0

371 Gough Road

  

Toronto, Canada

  Mar-13   $ 8.4  (3)      64,546        55,495        100.0

1500 Towerview Road

  

Minneapolis/St.Paul, Minnesota

  Mar-13   $ 37.0        328,765        —          100.0
      

 

 

   

 

 

   

 

 

   

 

 

 
       $ 77.9        573,409        164,421        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) Occupancy percentages are calculated net of square footage of space held for development.
(3) Purchase price in USD is based on the exchange rate on the date of acquisition.

Note: 43940 Digital Loudoun Plaza - G, Northern Virginia is a completed development project built from land acquired in 2011. It has been added to our operating property count as of March 31, 2013.

 

Page 18


DIGITAL REALTY TRUST, INC.

First Quarter 2013

 

Occupancy Analysis

As of March 31, 2013

(Dollar amounts in thousands)

 

                      Net
Rentable
Square

Feet (1)
     Space  Held
for
Development
     Annualized
Rent
($000) (2)
    

 

 

 

 

Occupancy (3)

    Net
Rentable
Square

Feet as a
% of

Total
Portfolio
    Annualized
Rent as  a

% of
Total
Portfolio
 

Property

   Buildings      Acquisition
Date
   Property Type             As of
03/31/13
    As of
12/31/12
    As of
9/30/12
    As of
6/30/12
     

NORTH AMERICA

                              

Dallas

                              

2323 Bryan Street

     1       Jan-02    Internet Gateway      453,539         23,568         15,579         76.5     77.7     76.9     76.1     2.2     1.5

2501 S. State Hwy. 121

     9       Feb-12    Data Center      829,372         —           13,308         98.5     99.7     98.5     98.5     4.0        1.3   

2440 Marsh Lane

     1       Jan-03    Data Center      135,250         —           12,059         94.7     91.9     91.9     85.9     0.7        1.1   

1232 Alma Rd RS 100

     1       Sep-09    Data Center      105,726         —           11,777         89.0     89.0     99.4     99.5     0.5        1.1   

4849 Alpha Road

     1       Apr-04    Data Center      125,538         —           11,138         100.0     100.0     99.7     99.7     0.6        1.1   

4025 Midway Road

     1       Jan-06    Data Center      100,590         —           10,121         98.4     98.4     99.9     99.9     0.5        1.0   

400 S. Akard

     1       Jun-12    Internet Gateway      269,563         —           7,917         94.7     94.7     94.7     84.6     1.3        0.7   

11830 Webb Chapel Road

     1       Aug-04    Data Center      365,647         —           7,735         96.3     96.3     88.1     88.1     1.8        0.7   

900 Quality Way

     1       Sep-09    Data Center      33,680         81,242         6,278         100.0     100.0     100.0     100.0     0.2        0.6   

14901 FAA Boulevard

     3       Jun-06    Data Center      263,700         —           5,061         100.0     100.0     100.0     100.0     1.3        0.5   

900 Dorothy Drive

     1       Aug-10    Data Center      56,176         —           1,612         100.0     100.0     100.0     100.0     0.3        0.2   

1215 Integrity Drive (4)

     1       Sep-09    Data Center      61,750         —           1,310         94.6     100.0     100.0     N/A        0.3        0.1   

904 Quality Way

     1       Sep-09    Data Center      46,750         —           972         100.0     100.0     100.0     N/A        0.2        0.1   

17201 Waterview Parkway

     1       Jan-13    Data Center      61,750         —           704         100.0     N/A        N/A        N/A        0.3        0.1   

905 Security Row

     1       Sep-09    Data Center      —           249,657         —           0.0     0.0     0.0     0.0     0.0        0.0   

1210 Integrity Drive

     1       Sep-09    Data Center      —           246,940         —           0.0     0.0     0.0     0.0     0.0        0.0   

1301 International Parkkway

     1       Sep-09    Data Center      —           20,500         —           0.0     0.0     0.0     0.0     0.0        0.0   
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              2,909,031         621,907         105,571         94.2     94.5     93.4     91.7     14.2     10.1

Silicon Valley

                              

3011 Lafayette Street

     1       Jan-07    Data Center      90,780         —           10,553         100.0     100.0     100.0     100.0     0.4     1.0

1350 Duane & 3080 Raymond

     2       Oct-09    Data Center      185,000         —           10,273         100.0     100.0     100.0     100.0     0.9        1.0   

1100 Space Park Drive

     1       Nov-04    Internet Gateway      165,297         —           9,597         100.0     100.0     100.0     92.7     0.8        0.9   

1500 Space Park Drive

     1       Sep-07    Data Center      51,615         —           9,325         100.0     100.0     100.0     100.0     0.3        0.9   

1525 Comstock Street

     1       Sep-07    Data Center      42,385         —           8,649         100.0     100.0     100.0     100.0     0.2        0.8   

3105 and 3205 Alfred Street

     2       May-10    Data Center      49,858         —           8,371         87.9     87.9     87.9     87.9     0.2        0.8   

2045 & 2055 LaFayette Street

     2       May-04    Data Center      300,000         —           7,200         100.0     100.0     100.0     100.0     1.5        0.7   

1725 Comstock Street

     1       Apr-10    Data Center      39,643         —           6,870         100.0     100.0     100.0     100.0     0.2        0.6   

150 South First Street

     1       Sep-04    Data Center      179,761         —           6,506         93.7     93.7     93.7     93.7     0.9        0.6   

1201 Comstock Street

     1       Jun-08    Data Center      24,000         —           4,736         100.0     100.0     100.0     100.0     0.1        0.4   

2334 Lundy Place

     1       Dec-02    Data Center      130,752         —           4,525         100.0     100.0     100.0     100.0     0.6        0.4   

4650 Old Ironsides Drive

     1       Jun-05    Data Center      124,383         —           4,010         100.0     100.0     100.0     100.0     0.6        0.4   

2401 Walsh Street

     1       Jun-05    Data Center      167,932         —           3,834         100.0     100.0     100.0     100.0     0.8        0.4   

2950 Zanker Road

     1       Aug-10    Data Center      69,700         —           3,060         100.0     100.0     100.0     100.0     0.3        0.3   

2403 Walsh Street

     1       Jun-05    Data Center      103,940         —           2,373         100.0     100.0     100.0     100.0     0.5        0.2   

4700 Old Ironsides Drive

     1       Jun-05    Data Center      90,139         —           2,058         100.0     100.0     100.0     100.0     0.4        0.2   

444 Toyama Drive

     1       Sep-09    Data Center      42,083         —           1,885         100.0     100.0     100.0     100.0     0.2        0.2   

2805 Lafayette Street (5)

     1       Aug-10    Data Center      32,133         117,867         —           0.0     0.0     0.0     0.0     0.2        0.0   
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              1,889,401         117,867         103,825         97.4     97.4     99.1     98.4     9.1     9.8

Northern Virginia

                              

43881 Devin Shafron Drive

     1       Mar-07    Data Center      180,000         —           18,794         100.0     100.0     100.0     100.0     0.8     1.8

43915 Devin Shafron Drive - A

     1       May-09    Data Center      129,033         3,247         15,878         100.0     100.0     100.0     100.0     0.6        1.5   

43791 Devin Shafron Drive - D

     1       Mar-07    Data Center      132,806         2,194         9,804         77.4     77.4     77.4     100.0     0.6        0.9   

43830 Devin Shafron Drive - F

     1       May-09    Data Center      99,652         13,598         9,638         84.4     84.4     84.3     74.6     0.5        0.9   

4050 Lafayette Center Drive

     1       Jul-10    Data Center      42,374         —           6,655         99.0     99.0     99.0     99.0     0.2        0.6   

4030 Lafayette Center Drive

     1       Jul-10    Data Center      72,696         —           5,885         100.0     100.0     100.0     100.0     0.4        0.6   

43940 Digital Loudoun Plaza - G

     1       Apr-11    Data Center      54,124         —           4,825         100.0     N/A        N/A        N/A        0.3        0.5   

45901 & 45845 Nokes Boulevard

     2       Dec-09    Data Center      167,160         —           4,685         100.0     100.0     100.0     100.0     0.8        0.4   

44470 Chilum Place

     1       Feb-07    Data Center      95,440         —           4,419         100.0     100.0     100.0     100.0     0.5        0.4   

43790 Devin Shafron Drive - E

     1       May-09    Data Center      152,138         —           3,134         100.0     100.0     100.0     100.0     0.7        0.3   

21110 Ridgetop Circle

     1       Jan-07    Data Center      135,513         —           2,993         100.0     100.0     100.0     100.0     0.7        0.3   

21561 & 21571 Beaumeade Circle

     2       Dec-09    Data Center      164,453         —           2,931         100.0     100.0     100.0     100.0     0.8        0.3   

1506 Moran Road

     2       Dec-11    Data Center      78,295         —           2,371         100.0     100.0     100.0     100.0     0.4        0.2   

21551 Beaumeade Circle

     1       Dec-09    Data Center      152,504         —           2,088         100.0     100.0     100.0     100.0     0.7        0.2   

1807 Michael Faraday Court

     1       Oct-06    Data Center      19,237         —           1,892         100.0     100.0     100.0     100.0     0.1        0.2   

7505 Mason King Court

     1       Nov-08    Data Center      109,650         —           1,865         100.0     100.0     100.0     100.0     0.5        0.2   

251 Exchange Place

     1       Nov-05    Data Center      70,982         —           1,689         100.0     100.0     100.0     100.0     0.3        0.2   

43831 Devin Shafron Drive - C

     1       Mar-07    Data Center      117,071         —           1,538         100.0     100.0     100.0     100.0     0.6        0.1   

8100 Boone Boulevard

     2       Oct-06    Data Center      17,015         —           613         14.9     24.4     24.9     24.9     0.1        0.1   

4040 Lafayette Center Drive

     1       Jul-10    Data Center      —           30,333         —           N/A        N/A        N/A        N/A        0.0        0.0   
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              1,990,143         49,372         101,697         97.0     97.0     96.9     98.4     9.6     9.7

New York

                              

365 S Randolphville Road

     1       Feb-08    Data Center      188,754         76,038         19,944         98.7     98.5     95.8     88.6     0.9     1.9

3 Corporate Place

     1       Dec-05    Data Center      276,931         —           19,027         100.0     100.0     100.0     100.0     1.3        1.8   

111 Eighth Avenue (6)

     1       Oct-06    Internet Gateway      116,843         —           18,670         92.0     100.0     99.3     99.3     0.6        1.8   

300 Boulevard East

     1       Nov-02    Data Center      346,819         22,962         18,009         92.7     92.3     89.9     89.9     1.7        1.7   

60 & 80 Merritt Boulevard

     1       Jan-10    Data Center      192,933         —           16,375         100.0     100.0     100.0     100.0     0.9        1.6   

650 Randolph Road

     1       Jun-08    Data Center      —           127,790         —           0.0     0.0     0.0     0.0     0.0        0.0   

410 Commerce Boulevard (7)

     0       Aug-12    Data Center      —           —           —           N/A        N/A        N/A        N/A        0.0        0.0   

701 Union Boulevard

     0       Nov-12    Data Center      —           271,000            N/A        N/A        N/A        N/A        0.0        0.0   
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              1,122,280         497,790         92,025         96.7     97.3     96.0     94.9     5.4     8.8

 

Page 19


DIGITAL REALTY TRUST, INC.

First Quarter 2013

 

Occupancy Analysis

As of March 31, 2013

(Dollar amounts in thousands)

 

                      Net
Rentable
Square
Feet (1)
     Space Held
for
Development
     Annualized
Rent
($000) (2)
    

 

 

 

 

Occupancy (3)

    Net
Rentable
Square
Feet as a
% of

Total
Portfolio
    Annualized
Rent as a
% of

Total
Portfolio
 

Property

   Buildings      Acquisition
Date
   Property Type             As of
03/31/13
    As of
12/31/12
    As of
9/30/12
    As of
6/30/12
     

Chicago

                              

350 E Cermak Road

     1       May-05    Internet Gateway      1,129,226         4,513         68,976         98.5     98.5     98.5     98.3     5.5     6.5

600-780 S. Federal

     1       Sep-05    Internet Gateway      120,898         40,649         7,095         92.7     79.0     76.6     76.6     0.6        0.7   

9333, 9355, 9377 Grand Avenue

     3       May-12    Data Center      457,429         117,515         1,895         100.0     100.0     100.0     100.0     2.2        0.2   
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              1,707,553         162,677         77,966         98.5     97.3     97.1     97.0     8.3     7.4

San Francisco

                              

200 Paul Avenue 1-4

     4       Nov-04    Internet Gateway      494,120         33,560         27,882         99.0     99.3     99.3     96.3     2.4     2.6

365 Main Street

     1       Jul-10    Data Center      226,981         —           26,577         82.1     84.0     91.6     91.7     1.1        2.5   

720 2nd Street

     1       Jul-10    Data Center      121,220         —           14,426         86.0     89.5     87.7     87.4     0.6        1.4   

360 Spear Street

     1       Dec-11    Data Center      154,950         —           8,188         100.0     100.0     100.0     100.0     0.8        0.8   
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              997,271         33,560         77,073         93.8     94.7     96.2     94.8     4.9     7.3

Phoenix

                              

2121 South Price Road

     1       Jul-10    Data Center      367,665         151,814         37,580         83.1     80.3     84.1     84.1     1.8     3.6

120 E Van Buren

     1       Jul-06    Internet Gateway      287,514         —           20,804         87.8     88.2     91.1     91.2     1.4        2.0   

2055 East Technology Circle

     1       Oct-06    Data Center      76,350         —           8,478         100.0     100.0     100.0     100.0     0.4        0.8   

1900 S. Price Road

     3       Jan-13    Data Center      118,348         108,926         1,450         100.0     N/A        N/A        N/A        0.6        0.1   
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              849,877         260,740         68,312         88.6     85.5     88.7     88.7     4.2     6.5

Boston

                              

128 First Avenue

     1       Jan-10    Data Center      274,750         —           22,836         97.8     97.3     97.1     99.2     1.3     2.2

Digital 55 Middlesex LLC

     1       Jan-10    Data Center      106,000         —           11,626         95.1     96.2     96.2     90.5     0.5        1.1   

100 Quannapowitt Parkway

     2       Jun-04    Data Center      286,550         100,406         6,752         90.4     89.7     89.6     88.7     1.4        0.6   

115 Second Avenue

     1       Oct-05    Data Center      66,730         —           3,756         100.0     100.0     100.0     100.0     0.3        0.4   

600 Winter Street

     1       Sep-06    Data Center      30,400         —           760         100.0     100.0     100.0     100.0     0.2        0.1   
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              764,430         100,406         45,730         94.9     94.7     94.5     94.2     3.7     4.4

Los Angeles

                              

600 West Seventh Street

     1       May-04    Internet Gateway      489,722         —           23,388         98.3     98.4     98.7     98.4     2.4     2.2

2260 East El Segundo Boulevard

     1       Jul-10    Data Center      132,240         —           12,836         99.6     99.6     100.0     100.0     0.6        1.2   

200 North Nash Street

     1       Jun-05    Data Center      113,606         —           2,595         100.0     100.0     100.0     100.0     0.6        0.2   

3015 Winona Avenue

     1       Dec-04    Data Center      82,911         —           1,706         100.0     100.0     100.0     100.0     0.4        0.2   

3300 East Birch Street

     1       Aug-03    Data Center      68,807         —           1,593         100.0     100.0     100.0     100.0     0.3        0.1   
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              887,286         —           42,118         99.0     99.1     99.3     99.1     4.3     3.9

Atlanta

                              

375 Riverside Parkway

     1       Jun-03    Data Center      250,191         —           8,481         100.0     100.0     99.2     99.2     1.2     0.8

760 Doug Davis Drive

     1       Dec-11    Data Center      334,306         —           6,467         100.0     100.0     100.0     100.0     1.6        0.6   

101 Aquila Way

     1       Apr-06    Data Center      313,581         —           1,437         100.0     100.0     100.0     100.0     1.5        0.1   
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              898,078         —           16,385         100.0     100.0     99.8     99.8     4.3     1.5

Philadelphia

                              

833 Chestnut Street

     1       Mar-05    Data Center      592,295         62,463         13,230         91.4     92.0     92.0     92.0     2.9     1.3
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              592,295         62,463         13,230         91.4     92.0     92.0     92.0     2.9     1.3

Houston

                              

Digital Houston

     6       Apr-06    Data Center      282,483         18,222         11,296         92.2     91.9     84.5     77.1     1.3     1.1
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              282,483         18,222         11,296         92.2     91.9     84.5     77.1     1.3     1.1

Denver

                              

11900 East Cornell Avenue

     1       Sep-12    Data Center      285,840         —           6,416         94.3     94.3     94.3     N/A        1.4     0.6

8534 Concord Center Drive

     1       Jun-05    Data Center      85,660         —           3,674         100.0     100.0     100.0     100.0     0.4        0.3   
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              371,500         —           10,090         95.6     95.6     95.6     100.0     1.8     0.9

St. Louis

                              

900 Walnut Street

     1       Aug-07    Internet Gateway      105,776         6,490         4,498         99.9     99.9     99.9     99.9     0.5     0.4

210 N Tucker Boulevard

     1       Aug-07    Data Center      184,490         152,926         4,383         83.3     83.3     71.7     76.2     0.9        0.4   
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              290,266         159,416         8,881         89.3     89.3     82.0     85.5     1.4     0.8

Portland

                              

3825 NW Aloclek Place

     1       Aug-11    Data Center      48,574         —           7,993         100.0     100.0     100.0     N/A        0.2     0.8
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              48,574         —           7,993         100.0     100     100     N/A        0.2     0.8

Minneapolis/St. Paul

                              

1500 Towerview Road

     1       Mar-13    Data Center      328,765         —           4,438         100.0     N/A        N/A        N/A        1.6     0.5

1125 Energy Park Drive

     1       Mar-05    Data Center      112,827         —           1,437         100.0     100.0     100.0     100.0     0.5        0.2   
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              441,592         —           5,875         100.0     100.0     100.0     100.0     2.1     0.7

Miami

                              

36 NE 2nd Street

     1       Jan-02    Internet Gateway      162,140         —           5,108         99.1     99.1     95.9     95.9     0.8     0.5

2300 NW 89th Place

     2       Sep-06    Data Center      64,174         —           673         100.0     100.0     100.0     100.0     0.3        0.1   
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              226,314         —           5,781         99.3     99.3     97.0     97.0     1.1     0.6

Sacramento

                              

11085 Sun Center Drive

     1       Sep-11    Data Center      69,048         —           2,794         100.0     100.0     100.0     100.0     0.3     0.3

3065 Gold Camp Drive

     1       Oct-04    Data Center      40,394         23,397         1,912         100.0     100.0     100.0     33.6     0.2        0.2   
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              109,442         23,397         4,706         100.0     100.0     100.0     75.8     0.5     0.5

 

Page 20


DIGITAL REALTY TRUST, INC.

First Quarter 2013

 

Occupancy Analysis

As of March 31, 2013

(Dollar amounts in thousands)

 

                      Net
Rentable
Square
Feet (1)
     Space Held
for
Development
     Annualized
Rent
($000) (2)
    

 

 

 

 

Occupancy (3)

    Net
Rentable
Square
Feet as a
% of

Total
Portfolio
    Annualized
Rent as a
% of

Total
Portfolio
 

Property

   Buildings      Acquisition
Date
   Property Type             As of
03/31/13
    As of
12/31/12
    As of
9/30/12
    As of
6/30/12
     

Charlotte

                              

125 North Myers

     1       Aug-05    Internet Gateway      25,402         —           1,395         100.0     100.0     100.0     100.0     0.1     0.1

731 East Trade Street

     1       Aug-05    Internet Gateway      40,879         —           1,311         100.0     100.0     100.0     100.0     0.2        0.1   

113 North Myers

     1       Aug-05    Internet Gateway      29,218         —           942         100.0     100.0     100.0     100.0     0.1        0.1   
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              95,499         —           3,648         100.0     100.0     100.0     100.0     0.4     0.3

Toronto, Canada

                              

6800 Millcreek Drive

     1       Apr-06    Data Center      83,758         —           2,034         100.0     100.0     100.0     100.0     0.4     0.2

371 Gough Road

     1       Mar-13    Data Center      64,546         55,495         352         100.0     N/A        N/A        N/A        0.3        0.0   
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              148,304         55,495         2,386         100.0     100.0     100.0     100.0     0.7     0.2

Austin

                              

8025 North Interstate 35

     1       May-12    Data Center      62,237         —           934         100.0     100.0     100.0     100.0     0.3     0.1

7620 Metro Center Drive

     1       Dec-05    Data Center      45,000         —           325         69.6     69.6     69.6     67.1     0.2        0.0   

7500 Metro Center Drive

     1       Dec-05    Data Center      —           74,962         —           0.0     0.0     0.0     0.0     0.0        0.0   
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              107,237         74,962         1,259         87.2     87.2     87.2     86.2     0.5     0.1

EUROPE

                              

London, England

                              

Unit 21 Goldsworth Park Trading Estate

     1       Jul-12    Data Center      348,748         131,252         49,587         99.4     99.3     98.9     N/A        1.7     4.7

Watford (8)

     1       Jul-12    Data Center      133,000         —           17,959         97.3     97.3     97.6     N/A        0.6        1.7   

Croydon (9)

     1       Jul-12    Data Center      120,000         —           15,326         100.0     100.0     100.0     N/A        0.6        1.5   

3 St. Anne’s Boulevard

     1       Dec-07    Data Center      96,147         —           12,734         74.9     73.2     72.7     65.7     0.5        1.2   

Mundells Roundabout

     1       Apr-07    Data Center      113,464         —           7,750         100.0     100.0     100.0     100.0     0.6        0.7   

Cressex 1

     1       Dec-07    Data Center      50,847         —           7,163         100.0     100.0     100.0     100.0     0.2        0.7   

6 Braham Street

     1       Jul-02    Internet Gateway      63,233         —           4,733         100.0     100.0     100.0     100.0     0.3        0.4   

2 St. Anne’s Boulevard

     1       Dec-07    Data Center      30,612         —           3,331         100.0     100.0     100.0     100.0     0.1        0.3   

1 St. Anne’s Boulevard

     1       Dec-07    Data Center      20,219         —           275         100.0     100.0     100.0     100.0     0.1        0.0   

Fountain Court

     1       Jul-11    Data Center      42,764         89,814         155         16.8     16.8     37.6     0.0     0.2        0.0   
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              1,019,034         221,066         119,013         93.6     93.3     95.4     91.2     4.9     11.2

Paris, France

                              

114 Rue Ambroise Croizat

     2       Dec-06    Internet Gateway      332,795         19,351         20,104         93.5     93.5     93.5     93.5     1.6     1.9

1 Rue Jean-Pierre

     1       Dec-12    Data Center      104,666         —           4,487         100.0     100.0     N/A        N/A        0.5        0.4   

127 Rue de Paris

     1       Dec-12    Data Center      59,991         —           1,923         100.0     100.0     N/A        N/A        0.3        0.2   

Liet-dit ie Christ de Saclay

     1       Dec-12    Data Center      21,337         —           641         100.0     100.0     N/A        N/A        0.1        0.1   
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              518,789         19,351         27,155         95.8     95.8     93.5     93.5     2.5     2.6

Dublin, Ireland

                              

Unit 9 Blanchardstown Corporate Center

     1       Dec-06    Data Center      120,000         —           10,058         97.1     98.4     97.7     98.8     0.6     1.0

Clonshaugh Industrial Estate II

     1       Aug-05    Data Center      124,500         —           8,515         100.0     100.0     100.0     100.0     0.6        0.8   

Clonshaugh Industrial Estate I

     1       Feb-06    Data Center      20,000         —           1,514         100.0     100.0     100.0     100.0     0.1        0.1   
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              264,500         —           20,087         98.7     99.3     98.9     99.4     1.3     1.9

Amsterdam, Netherlands

                              

Paul van Vlissingenstraat 16

     1       Aug-05    Data Center      112,472         —           7,103         100.0     81.4     81.4     81.0     0.5     0.7

Cateringweg 5

     1       Jun-10    Data Center      55,972         —           5,365         100.0     100.0     100.0     100.0     0.3        0.5   

Naritaweg 52

     1       Dec-07    Data Center      63,260         —           2,577         100.0     100.0     100.0     100.0     0.3        0.2   

Gyroscoopweg 2E-2F

     2       Jul-06    Data Center      55,585         —           1,215         100.0     100.0     100.0     100.0     0.3        0.1   
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              287,289         —           16,260         100.0     92.7     92.7     92.4     1.4     1.5

Manchester, England

                              

Manchester Technopark

     1       Jun-08    Data Center      38,016         —           1,790         100.0     100.0     100.0     100.0     0.2     0.2
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              38,016         —           1,790         100.0     100.0     100.0     100.0     0.2     0.2

Geneva, Switzerland

                              

Chemin de l Epinglier 2

     1       Nov-05    Data Center      59,190         —           1,673         100.0     100.0     100.0     100.0     0.3     0.2
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              59,190         —           1,673         100.0     100.0     100.0     100.0     0.3     0.2

ASIA PACIFIC

                              

Singapore

                              

29A International Business Park

     1       Nov-10    Data Center      306,172         64,328         12,418         81.1     77.2     58.9     55.9     1.5     1.2
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              306,172         64,328         12,418         81.1     77.2     58.9     55.9     1.5     1.2

Melbourne

                              

98 Radnor Drive

     1       Jun-11    Data Center      52,988         —           7,366         100.0     100.0     N/A        N/A        0.3     0.7
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              52,988         —           7,366         100.0     100.0     N/A        N/A        0.3     0.7

Sydney

                              

1-23 Templar Road

     1       Feb-11    Data Center      41,202         45,015         1,592         16.8     16.8     N/A        N/A        0.2     0.1

23 Waterloo Road

     1       Nov-12    Data Center      51,990         —           1,442         100.0     100.0     N/A        N/A        0.3        0.1   
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              93,192         45,015         3,034         63.2     63.2     N/A        N/A        0.5     0.2

 

Page 21


DIGITAL REALTY TRUST, INC.

First Quarter 2013

 

Occupancy Analysis

As of March 31, 2013

(Dollar amounts in thousands)

 

                      Net
Rentable
Square
Feet (1)
     Space Held
for
Development
     Annualized
Rent
($000) (2)
    

 

 

 

 

Occupancy (3)

    Net
Rentable
Square
Feet as a
% of

Total
Portfolio
    Annualized
Rent as a
% of

Total
Portfolio
 

Property

   Buildings      Acquisition
Date
   Property Type             As of
03/31/13
    As of
12/31/12
    As of
9/30/12
    As of
6/30/12
     

NON-DATACENTER PROPERTIES

                              

34551 Ardenwood Boulevard

     4       Jan-03    Technology Manufacturing      307,657         —           4,401         52.0     100.0     100.0     100.0     1.5     0.4

2010 East Centennial Circle

     1       May-03    Technology Manufacturing      113,405         —           3,194         100.0     100.0     100.0     100.0     0.6        0.3   

1 Savvis Parkway

     1       Aug-07    Technology Office      156,000         —           3,042         100.0     100.0     100.0     100.0     0.8        0.3   

908 Quality Way

     1       Sep-09    Technology Office      14,400         —           25         100.0     100.0     100.0     100.0     0.1        0.0   

47700 Kato Road & 1055 Page Avenue

     2       Sep-03    Technology Manufacturing      199,352         —           —           0.0     0.0     0.0     0.0     1.0        0.0   
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              790,814         —           10,662         56.1     74.8     76.4     56.1     4.0     1.0
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Consolidated Portfolio Total/Weighted Average

     175               20,158,840         2,588,034         1,025,305         94.0     94.4     94.2     93.5     97.8     97.4
  

 

 

          

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

UNCONSOLIDATED JOINT VENTURES

                              

Seattle

                              

2001 Sixth Avenue

     1       Nov-06    Data Center      400,639         —           24,165         92.7     93.7     94.1     93.7     2.0     2.3

2020 Fifth Avenue

     1       Oct-11    Data Center      47,030         —           3,120         100.0     N/A        N/A        N/A        0.2        0.3   
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              447,669         —           27,285         93.5     93.7     94.1     93.7     2.2     2.6

Hong Kong

                              

33 Chun Choi Street

     1       Oct-12    Data Center      —           —           —           N/A        N/A        N/A        N/A        0.0     0.0
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              —           —           —           N/A        N/A        N/A        N/A        0.0     0.0
           

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Unconsolidated Portfolio Total/Weighted Average

     3               447,669         —           27,285                
  

 

 

          

 

 

    

 

 

    

 

 

              

Portfolio Total/Weighted Average

     178               20,606,509         2,588,034         1,052,590         94.0     94.4     94.2     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 March 31, 2013 multiplied by 12.
(3) Occupancy excludes space held for development. 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) Building formerly referred to as 1215 Datacenter Park.
(5) Building formerly referred to as 800 Central Expressway.
(6) Includes approximately 33,700 rentable square feet from a leasehold interest acquisition.
(7) Includes approximately 27,943 rentable square feet from a leasehold interest acquisition.
(8) Building formerly referred to as The Chess Building.
(9) Building formerly referred to as Unit B Prologis Park.

 

Page 22


DIGITAL REALTY TRUST, INC.

First Quarter 2013

 

Top 20 Tenants by Annualized Rent

As of March 31, 2013

(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)

     35         2,784,432         13.8   $ 93,580         9.1     95   

2 TelX Group, Inc.

     12         323,626         1.6   $ 43,624         4.3     177   

3 Softlayer Technologies, Inc.

     8         372,979         1.9   $ 41,138         4.0     108   

4 Equinix Operating Company, Inc.

     9         878,062         4.4   $ 34,034         3.3     71   

5 Morgan Stanley

     5         182,592         0.9   $ 27,420         2.7     38   

6 Facebook, Inc.

     3         206,283         1.0   $ 27,130         2.6     73   

7 AT & T

     18         660,442         3.3   $ 26,090         2.5     70   

8 Verizon Communications, Inc.

     31         378,463         1.9   $ 22,073         2.2     66   

9 Deutsche Bank AG

     3         112,961         0.6   $ 21,266         2.1     64   

10 NTT Communications Company

     6         321,061         1.6   $ 19,237         1.9     76   

11 Level 3 Communications, LLC

     36         375,887         1.9   $ 15,263         1.5     88   

12 Amazon

     7         457,135         2.3   $ 13,921         1.4     94   

13 SunGard Availability Services LP

     6         315,427         1.6   $ 13,583         1.3     75   

14 Nomura International PLC

     2         63,137         0.3   $ 11,813         1.2     82   

15 Pfizer, Inc.

     1         97,069         0.5   $ 11,202         1.1     57   

16 TATA Communications (UK)

     3         112,533         0.6   $ 10,741         1.0     57   

17 Yahoo! Inc.

     2         110,847         0.5   $ 10,668         1.0     55   

18 BT Americas, Inc.

     3         67,685         0.3   $ 10,028         1.0     51   

19 Microsoft Corporation

     3         324,652         1.6   $ 9,718         0.9     32   

20 Sprint Communications Co., LP

     6         173,319         0.9   $ 9,715         0.9     18   
     

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total/Weighted Average

        8,318,592         41.5   $ 472,244         46.0     83   
     

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

(1) Occupied square footage is defined as leases that commenced on or before March 31, 2013. 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 March 31, 2013 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 23


DIGITAL REALTY TRUST, INC.

First Quarter 2013

 

Lease Expirations and Lease Distribution

Lease Expirations

As of March 31, 2013

(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

       1,215,139        6.0       0.0      

Month to Month(4)

     109        80,150        0.4   $ 8,520        0.8   $ 106.30      $ 113.76      $ 9,118   

2013

     211        492,029        2.4     45,727        4.5     92.94        93.86        46,184   

2014

     296        1,408,340        7.0     101,719        9.9     72.23        74.34        104,701   

2015

     226        2,400,981        11.9     86,951        8.5     36.21        38.14        91,581   

2016

     199        1,814,882        9.0     84,156        8.2     46.37        51.25        93,018   

2017

     172        1,436,791        7.1     70,988        6.9     49.41        53.97        77,540   

2018

     116        1,206,268        6.0     74,630        7.3     61.87        70.23        84,721   

2019

     110        1,847,449        9.2     135,263        13.2     73.22        84.39        155,906   

2020

     80        881,412        4.4     63,441        6.2     71.98        87.17        76,833   

2021

     82        1,545,645        7.7     76,041        7.4     49.20        62.16        96,084   

2022

     86        1,453,663        7.2     67,409        6.6     46.37        56.51        82,148   

Thereafter

     270        4,376,091        21.7     210,460        20.5     48.09        64.24        281,101   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio Total / Weighted Average

     1,957        20,158,840        100.0   $ 1,025,305        100.0   $ 54.12      $ 63.29      $ 1,198,935   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Lease Distribution

As of March 31, 2013

(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

          1,215,139         6.0     —           0.0

2,500 or less

     1,201         61.4     605,563         3.0   $ 54,667         5.3

2,501 - 10,000

     335         17.1     2,008,801         10.0     173,169         16.9

10,001 - 20,000

     198         10.1     2,938,247         14.5     256,333         25.0

20,001 - 40,000

     113         5.8     3,319,093         16.5     230,483         22.5

40,001 - 100,000

     76         3.9     4,838,624         24.0     187,565         18.3

Greater than 100,000

     34         1.7     5,233,373         26.0     123,088         12.0
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Portfolio Total

     1,957         100.0     20,158,840         100.0   $ 1,025,305         100.0
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

 

(1) 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. 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.
(3) Annualized rent represents the monthly contractual base rent (defined as cash base rent before abatements) under existing leases as of March 31, 2013 multiplied by 12.
(4) Includes leases, licenses and similar agreements that upon expiration have been automatically renewed on a month-to-month basis.

 

Page 24


DIGITAL REALTY TRUST, INC.

First Quarter 2013

 

Lease Expirations - By Product Type

As of March 31, 2013

(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

       323,223        1.6     —          0.0      

Month to Month(4)

     43        48,429        0.2   $ 5,965        0.6   $ 123.17      $ 125.59      $ 6,082   

2013

     79        242,640        1.2     31,476        3.1     129.72        131.44        31,892   

2014

     109        363,145        1.8     55,290        5.4     152.25        156.58        56,863   

2015

     71        159,757        0.8     18,698        1.8     117.04        124.48        19,887   

2016

     84        319,592        1.6     44,907        4.4     140.51        157.52        50,343   

2017

     74        407,826        2.0     44,660        4.4     109.51        121.56        49,574   

2018

     52        362,348        1.8     47,281        4.6     130.49        150.17        54,415   

2019

     42        570,030        2.8     90,750        8.9     159.20        183.70        104,713   

2020

     35        282,170        1.4     43,430        4.2     153.91        189.56        53,488   

2021

     43        427,163        2.1     53,827        5.2     126.01        162.33        69,343   

2022

     42        346,736        1.7     38,804        3.8     111.91        136.15        47,207   

Thereafter

     96        971,848        4.8     105,352        10.3     108.40        145.73        141,626   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio Total / Weighted Average

     770        4,824,907        23.8   $ 580,440        56.7   $ 128.94      $ 152.26      $ 685,433   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

       184,682        0.9     —          0.0      

Month to Month(4)

     9        558        0.0   $ 160        0.0   $ 286.74      $ 286.74      $ 160   

2013

     16        58,219        0.3     3,801        0.4     65.29        65.31        3,802   

2014

     34        700,969        3.5     27,943        2.7     39.86        41.12        28,823   

2015

     51        1,471,743        7.3     51,913        5.1     35.27        36.99        54,435   

2016

     38        1,267,729        6.3     30,776        3.0     24.28        25.80        32,707   

2017

     18        244,914        1.2     7,109        0.7     29.03        31.79        7,786   

2018

     14        599,819        3.0     20,928        2.0     34.89        38.42        23,048   

2019

     21        1,107,817        5.5     39,947        3.9     36.06        41.50        45,974   

2020

     15        354,381        1.8     13,335        1.3     37.63        46.14        16,350   

2021

     8        680,655        3.4     14,835        1.4     21.80        26.66        18,146   

2022

     15        869,157        4.3     25,072        2.4     28.85        35.40        30,769   

Thereafter

     93        2,793,639        13.9     97,008        9.5     34.72        46.33        129,443   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio Total / Weighted Average

     332        10,334,282        51.4   $ 332,827        32.4   $ 32.79      $ 38.57      $ 391,443   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

       121,859        0.6     —          0.0      

Month to Month(4)

     28        9,567        0.1   $ 2,041        0.2   $ 213.34      $ 262.36      $ 2,510   

2013

     70        37,176        0.2     6,390        0.6     171.89        172.64        6,418   

2014

     90        63,547        0.3     13,175        1.3     207.33        214.79        13,649   

2015

     41        47,404        0.2     9,098        0.9     191.92        208.59        9,888   

2016

     18        24,096        0.1     4,322        0.4     179.37        230.08        5,544   

2017

     15        12,384        0.1     1,985        0.2     160.29        181.36        2,246   

2018

     2        3,365        0.0     829        0.1     246.36        280.83        945   

2019

     7        9,729        0.1     987        0.1     101.45        120.26        1,170   

2020

     2        1,105        0.0     304        0.0     275.11        329.41        364   

2021

     1        3,194        0.0     276        0.0     86.41        113.34        362   

2022

     —          —          0.0     —          0.0     —          —          —     

Thereafter

     1        4,534        0.0     167        0.0     36.72        171.15        776   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio Total / Weighted Average

     275        337,960        1.7   $ 39,574        3.8   $ 183.13      $ 203.02      $ 43,872   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

       585,375        2.9     —          0.0      

Month to Month(4)

     29        21,596        0.1   $ 355        0.0   $ 16.44      $ 16.95      $ 366   

2013

     46        153,994        0.8     4,059        0.4     26.36        26.44        4,072   

2014

     63        280,679        1.4     5,312        0.5     18.93        19.12        5,366   

2015

     63        722,077        3.6     7,242        0.7     10.03        10.21        7,372   

2016

     59        203,465        1.0     4,151        0.4     20.40        21.74        4,424   

2017

     65        771,667        3.8     17,235        1.7     22.33        23.24        17,934   

2018

     48        240,736        1.2     5,592        0.5     23.23        26.22        6,313   

2019

     40        159,873        0.8     3,580        0.3     22.39        25.33        4,049   

2020

     28        243,756        1.2     6,372        0.6     26.14        27.20        6,630   

2021

     30        434,633        2.2     7,104        0.7     16.34        18.94        8,233   

2022

     29        237,770        1.2     3,534        0.3     14.86        17.55        4,172   

Thereafter

     80        606,070        2.9     7,928        1.0     13.08        15.27        9,256   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio Total / Weighted Average

     580        4,661,691        23.1   $ 72,464        7.1   $ 17.78      $ 19.18      $ 78,187   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 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. 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.
(3) Annualized rent represents the monthly contractual base rent (defined as cash base rent before abatements) under existing leases as of March 31, 2013 multiplied by 12.
(4) Includes leases, licenses and similar agreements that upon expiration have been automatically renewed on a month-to-month basis.

 

Page 25


DIGITAL REALTY TRUST, INC.

First Quarter 2013

 

Summary of Leasing Activity

Leases Signed in the Quarter Ended March 31, 2013

 

     Number of
Leases (1)
     Rentable
Square Feet  (2)
     Expiring  Rates
(3)
     New Rates  (3)      Rental Rate
Changes
    TI’s/Lease
Commissions
Per Square Foot
     Weighted
Average
Lease Terms
(months)
 

Leasing Activity (4)

                   

Renewals Signed

                   

Turn-Key Flex (5)

     4         46,571       $ 157.67       $ 137.94         (12.5 %)    $ 0.63         106.7   

Powered Base Building

     3         145,109       $ 28.35       $ 35.29         24.5   $ 37.34         147.2   

Custom Solutions

     0         —           —           —             —           —     

Colocation

     9         3,681       $ 182.28       $ 207.84         14.0   $ 2.25         20.2   

Non-technical

     7         30,095       $ 23.43       $ 24.74         5.6   $ 2.63         108.0   

New Leases Signed

                   

Turn-Key Flex

     10         47,259          $ 163.01         $ 46.34         98.9   

Powered Base Building

     0         —           —           —             —           —     

Custom Solutions

     14         272,753          $ 119.13         $ 13.25         160.3   

Colocation

     20         8,842          $ 226.19         $ 67.87         48.3   

Non-technical

     13         53,448          $ 28.45         $ 10.45         94.7   

Leasing Activity Summary (4)

                   

Turn-Key Flex

     14         93,830         —         $ 150.57           

Powered Base Building

     3         145,109         —         $ 35.29           

Custom Solutions

     14         272,753         —         $ 119.13           

Colocation

     29         12,523         —         $ 220.80           

Non-technical

     20         83,543         —         $ 27.11           

 

(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) Excluding two TKF renewal leases in New York Metro, TKF GAAP rental rate change increased 22.7%.

 

Page 26


DIGITAL REALTY TRUST, INC.

First Quarter 2013

 

Summary of Leasing Activity

Leases Commenced in the Quarter Ended March 31, 2013

 

     Number of
Leases (1)
     Rentable
Square Feet  (2)
     Expiring  Rates
(3)
     New Rates  (3)      Rental Rate
Changes
    TI’s/Lease
Commissions
Per Square Foot
     Weighted
Average
Lease Terms
(months)
 

Leasing Activity (4)

                   

Renewals Commenced

                   

Turn-Key Flex (5)

     5         62,435       $ 134.90       $ 126.03         (6.6 %)    $ 0.61         116.9   

Powered Base Building

     3         145,109       $ 28.35       $ 35.29         24.5   $ 37.34         147.2   

Custom Solutions

     0         —           —           —             —           —     

Colocation

     14         7,059       $ 182.89       $ 217.40         18.9   $ 2.28         21.1   

Non-technical

     8         30,238       $ 23.55       $ 24.85         5.5   $ 2.62         107.6   

New Leases Commenced

                   

Turn-Key Flex

     13         100,524          $ 174.54         $ 41.92         158.2   

Powered Base Building

     2         39,762          $ 111.60         $ 7.03         180.5   

Custom Solutions

     2         30,939          $ 113.33         $ 29.29         128.0   

Colocation

     21         5,900          $ 340.69         $ 54.75         50.8   

Non-technical

     7         22,333          $ 28.86         $ 8.52         104.1   

Leasing Activity Summary (4)

                   

Turn-Key Flex

     18         162,959         —         $ 155.95           

Powered Base Building

     5         184,871         —         $ 51.49           

Custom Solutions

     2         30,939         —         $ 113.33           

Colocation

     35         12,959         —         $ 273.53           

Non-technical

     15         52,571         —         $ 26.55           

 

(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) Excluding two TKF renewal leases in New York Metro, TKF GAAP rental rate change increased 28.2%.

 

Page 27


DIGITAL REALTY TRUST, INC.

First Quarter 2013

 

Historical Capital Expenditures

 

     Three Months Ended  
     3/31/2013      12/31/2012      9/30/2012      6/30/2012      3/31/2012  

Recurring capital expenditures (1)

   $ 9,860,000       $ 14,432,000       $ 11,015,000       $ 9,229,000       $ 6,754,000   

Non-recurring capital expenditures (2)

   $ 232,774,000       $ 216,712,000       $ 176,141,000       $ 187,055,000       $ 167,360,000   

Total net rentable square feet at period end excluding development space (3)

     20,158,840         19,488,757         18,922,065         17,881,857         16,923,054   

 

(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) Non-recurring capital expenditures are primarily for development of space and land not including acquisition costs. 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, mechanical and 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 28


DIGITAL REALTY TRUST, INC.

First Quarter 2013

 

Construction Activity Report

As of March 31, 2013

(in square feet unless otherwise noted)

Construction in Progress by Market

 

     Construction in Progress (“CIP”)                      

Market

   Space Under
Development
    Land Under
Development
    Total Construction
In Progress
    Space Held for
Development
     Total      Percentage
Leased of CIP
 

Atlanta

     —          —          —          —           —           0.0

Austin

     74,962        —          74,962        —           74,962         0.0

Boston

     14,097        130,335        144,432        86,309         230,741         0.8

Chicago

     132,213        —          132,213        30,464         162,677         44.6

Dallas

     —          298,866        298,866        621,907         920,773         18.8

Houston

     —          124,097        124,097        18,222         142,319         69.9

Los Angeles

     —          —          —          —           —           0.0

New York Metro

     35,395        77,982        113,377        462,395         575,772         40.2

Northern Virginia

     —          164,700        164,700        49,372         214,072         57.6

Philadelphia

     —          —          —          62,463         62,463         0.0

Phoenix

     92,647        —          92,647        168,093         260,740         0.0

Portland

     —          —          —          —           —           0.0

Sacramento

     23,397        —          23,397        —           23,397         0.0

San Francisco

     —          —          —          33,560         33,560         0.0

Silicon Valley

     24,718        —          24,718        93,149         117,867         0.0

St. Louis

     91,502        —          91,502        67,914         159,416         0.0

Toronto, Canada

     —          —          —          55,495         55,495         0.0

London, England

     11,302        —          11,302        209,764         221,066         100.0

Paris, France

     —          —          —          19,351         19,351         0.0

Singapore

     —          —          —          64,328         64,328         0.0

Melbourne, Australia

     —          93,582        93,582        —           93,582         0.0

Sydney, Australia

     —          —          —          45,015         45,015         0.0
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

Grand Total

     500,233        889,562        1,389,795        2,087,801         3,477,596      
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    
              
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

Total US Markets

     488,931        795,980        1,284,911        1,693,848         2,978,759      

Total Intl Markets

     11,302        93,582        104,884        393,953         498,837      
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

Percentage Leased (¹)

     17.8     29.9     25.5        
  

 

 

   

 

 

   

 

 

         

Construction in Progress by Product Type (2)

 

     US      Europe      Asia/Pacific      Total      % Leased  (1)  

Turn-Key FlexSM

     509,699         —           40,000         549,699         14.3

Powered Base Building®

     510,248         —           53,582         563,830         0.0

Custom Solutions

     264,964         11,302         —           276,266         100.0
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Construction in Progress by Product Type

     1,284,911         11,302         93,582         1,389,795         25.5
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Development Activity (3)

 

     US     Europe     Asia/Pacific      Total     % Leased  (1)  

Total Development as of December 31, 2012

     2,934,353        249,082        202,925         3,386,360     

New Acquired Space Held for Development

     164,421        —          —           164,421     

Released Operating Space to Development

     21,268        —          —           21,268     

Space Delivered During the Quarter:

            —       

Turn-Key FlexSM

     (38,602     (8,665     —           (47,267     100.0

Powered Base Building®

     (16,247     —          —           (16,247     100.0

Custom Solutions

     (30,939     —          —           (30,939     100.0

Remeasurement Adjustments

     —          —          —           —       
  

 

 

   

 

 

   

 

 

    

 

 

   

Total Development as of March 31, 2013

     3,034,254        240,417        202,925         3,477,596     
  

 

 

   

 

 

   

 

 

    

 

 

   

 

(1) Represents leases signed.
(2) Based on current estimates.
(3) Includes space and land under development and space held for development.

 

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DIGITAL REALTY TRUST, INC.

First Quarter 2013

 

Construction Projects in Progress and Total Estimated Direct Cost (1)

For the quarter ended March 31, 2013

(Dollar amounts in thousands, except for cost per square foot)

 

Construction Projects in Progress and Total
Estimated Direct Cost

   Base Building
Improvement to
Net Rentable
Square Feet
     Net Rentable
Square Feet
     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 March 31, 2013 (2)

     —           549,699       $ 127,120       $ 215,405       $ 342,525       $ 623   

Custom Solutions Under Construction as of March 31, 2013 (2)

     —           276,266         31,983         118,660         150,643       $ 545   

Powered Base Building Under Construction as of March 31, 2013 (2)

     —           563,830         86,845         20,755         107,600       $ 191   

Base Building Improvements to Current in Progress Space Under Construction

     —           —           112,245         42,127         154,372      

Base Building Improvements to Support Future Development (3)

     1,036,923         —           26,259         91,225         117,484      

Base Building Improvements to Support Operating Portfolio (3)

     1,756,256         —           34,908         53,354         88,262      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

TOTAL

     2,793,179         1,389,795       $ 419,360       $ 541,526       $ 960,886      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

(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 based on current estimates.
(3) Cost incurred to develop base buildings for future development and overall condition of portfolio.

 

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DIGITAL REALTY TRUST, INC.

First Quarter 2013

 

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) change in fair value of contingent consideration, (ix) capitalized leasing payroll, (x) recurring tenant improvements, (xi) capitalized leasing commissions and (xii) 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 company’s 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.

 

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