EX-99.1 2 a3q15financialsupplemental.htm EXHIBIT 99.1 Exhibit


Table of Contents
Financial Supplement
 
Third Quarter 2015


Overview
PAGE

 
 
 
 
 
 
3

 
 
 
 
 
 
5

 
 
 
 
 
 
6

 
 
 
 
 
 
Consolidated Statements of Operations
 
 
 
 
 
 
 
Earnings Release
8

 
 
 
 
 
 
2015 Guidance
10

 
 
 
 
 
 
12

 
 
 
 
 
 
13

 
 
 
 
 
 
14

 
 
 
 
 
 
Balance Sheet Information
 
 
 
 
 
 
 
15

 
 
 
 
 
 
16

 
 
 
 
 
 
Consolidated Debt Analysis and Global Unsecured Revolving Credit Facility
17

 
 
 
 
 
 
18

 
 
 
 
 
 
19

 
 
 
 
 
 
Internal Growth
 
 
 
 
 
 
 
Same-Capital Operating Trend Summary
20

 
 
 
 
 
 
21

 
 
 
 
 
 
22

 
 
 
 
 
 
23

 
 
 
 
 
 
24

 
 
 
 
 
 
25

 
 
 
 
 
 
26

 
 
 
 
 
 
27

 
 
 
 
 
 
28

 
 
 
 
 
 
29

 
 
 
 
 
 
External Growth
 
 
 
 
 
 
 
34

 
 
 
 
 
 
35

 
 
 
 
 
 
36

 
 
 
 
 
 
37

 
 
 
 
 
 
38

 
 
 
 
 
 
39

 
 
 
 
 
 
40

 
 
 
 
 
 
41

 
 
 
 
 
 
Definitions
 
 
 
 
 
 
 
45

 
 
 
 
 
 
46



2

Corporate information
      
Financial Supplement
 
Third Quarter 2015


Corporate Profile
Digital Realty Trust, Inc. owns, acquires, develops and manages technology-related real estate. The Company is focused on providing data center and colocation solutions for domestic and international tenants across a variety of industry verticals ranging from financial services, cloud and information technology services, to manufacturing, energy, healthcare, and consumer products. As of September 30, 2015, the Company's 132 properties, including 14 properties held as investments in unconsolidated joint ventures, contain applications and operations critical to the day-to-day operations of technology industry and corporate enterprise data center tenants. Digital Realty's portfolio is comprised of approximately 21.9 million square feet, excluding approximately 1.4 million square feet of space under active development and 1.3 million square feet of space held for future development, 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
Website: www.digitalrealty.com

Senior Management
A. William Stein: Chief Executive Officer
Andrew P. Power: Chief Financial Officer
Scott E. Peterson: Chief Investment Officer
Jarrett Appleby: Chief Operating Officer
Michael Henry: Chief Information Officer
Chris Sharp: Chief Technology Officer
Matthew Miszewski: Senior Vice President, Sales & Marketing

Investor Relations
To request an Investor Relations package or to 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
 
Barclays Capital
 
Burke & Quick
 
Canaccord Genuity
 
Citigroup
David Rodgers
 
Ross Smotrich
 
Frederick W. Moran
 
Greg Miller
 
Michael Bilerman
(216) 737-7341
 
(212) 526-2306
 
(561) 504-0936
 
(212) 389-8128
 
(212) 816-1383
 
 
 
 
 
 
 
 
 
Stephen Dye
 
Dan Occhionero
 

 
Matthew Kahn
 
Emmanuel Korchman
(312) 609-5480
 
(212) 526-7164
 

 
(212) 389-8129
 
(212) 816-1382
 
 
 
 
 
 
 
 
 
Cowen
 
Deutsche Bank
 
Evercore ISI
 
Green Street
 
Jefferies
Colby Synesael
 
Vincent Chao
 
Jonathan Schildkraut
 
John Bejjani
 
Omotayo Okusanya
(646) 562-1355
 
(212) 250-6799
 
(212) 497-0864
 
(949) 640-8780
 
(212) 336-7076
 
 
 
 
 
 
 
 
 
Jonathan Charbonneau
 
Michael Husseini
 
Robert Gutman
 
Katherine Corwith
 
Jonathan Petersen
(646) 562-1356
 
(212) 250-7703
 
(212) 497-0877
 
(949) 640-8780
 
(212) 284-1705
 
 
 
 
 
 
 
 
 
KeyBanc
 
Macquarie
 
Morgan Stanley
 
Raymond James
 
RBC Capital Markets
Jordan Sadler
 
Kevin Smithen
 
Vance Edelson
 
Paul D. Puryear
 
Jonathan Atkin
(917) 368-2280
 
(212) 231-0695
 
(212) 761-0078
 
(727) 567-2253
 
(415) 633-8589
 
 
 
 
 
 
 
 
 
Austin Wurschmidt
 
Will Clayton
 

 
William A. Crow
 
Michael Carroll
(917) 368-2311
 
(212) 231-1957
 

 
(727) 567-2594
 
(440) 715-2649
 
 
 
 
 
 
 
 
 
Stifel
 
UBS
 

 

 

Matthew Heinz
 
Ross Nussbaum
 

 

 

(443) 224-1382
 
(212) 713-2484
 

 

 

 
 
 
 
 
 
 
 
 

 
Trent Trujillo
 

 

 


 
(212) 713-2384
 

 

 


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 on our website www.digitalrealty.com.

3

Corporate Information (Continued)
Financial Supplement
 
Third Quarter 2015


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:
 
DLRPRG
Series H Preferred Stock:
 
DLRPRH
Series I Preferred Stock:
 
DLRPRI

Note that symbols may vary by stock quote provider.

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 at 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):
 
30-Sep-15

30-Jun-15

31-Mar-15

31-Dec-14

30-Sep-14

High price (1)

$69.83


$69.12


$75.39


$70.92


$67.75

Low price (1)

$60.66


$62.76


$63.30


$62.19


$57.64

Closing price, end of quarter (1)

$65.32


$66.68


$65.96


$66.30


$62.38

Average daily trading volume (1)
1,365,945

904,995

1,128,089

1,050,258

1,130,023

Indicated dividend per common share (2)

$3.40


$3.40


$3.40


$3.32


$3.32

Closing annual dividend yield, end of quarter
5.2
%
5.1
%
5.2
%
5.0
%
5.3
%
Shares and units outstanding, end of quarter (3) (4)
138,679,297

138,763,472

138,718,379

138,639,916

138,627,370

Closing market value of shares and units outstanding (5)

$9,058,532


$9,252,748


$9,149,864


$9,191,826


$8,647,575


(1)
New York Stock Exchange trades only.
(2)
On an annualized basis.
(3)
As of September 30, 2015, the total number of shares and units includes 135,843,684 shares of common stock, 1,421,314 common units held by third parties and 1,414,299 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 conversion of our series E, series F, series G, series H and series I cumulative redeemable preferred stock upon certain change of control transactions.
(4)
On October 8, 2015, Digital Realty settled its forward equity sale transactions with each of its forward counterparties, delivering an aggregate of 10.5 million shares of common stock and receiving net proceeds of approximately $674.1 million. 
(5)
Dollars in thousands as of the end of the quarter.
 
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 on our website www.digitalrealty.com.

4

Ownership Structure
Financial Supplement
As of September 30, 2015
Third Quarter 2015

Partner

# of Units (2)
 
% Ownership
Digital Realty Trust, Inc.

135,843,684

 
98.0
%
Cambay Tele.com, LLC (3)

1,421,314

 
1.0
%
Directors, Executive Officers and Others

1,414,299

 
1.0
%
Total

138,679,297

 
100.0
%

(1)
Reflects limited partnership interests held by our directors, officers and others 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 135,843,684 general partnership common units, 1,421,314 common units held by third parties and 1,414,299 common units, vested and unvested long-term incentive units and vested class C units held by directors, officers and others, and excludes all unexercised common stock options and all shares potentially issuable upon conversion of our series E, series F, series G, series H and series I cumulative redeemable preferred stock upon certain change of control transactions. On October 8, 2015, Digital Realty Trust, Inc. settled its forward equity sale transactions with each of its forward counterparties, delivering an aggregate of 10.5 million shares of common stock and receiving net proceeds of approximately $674.1 million. In connection with the forward equity settlement and the closing of the acquisition of Telx Holdings, Inc. (the "Telx Acquisition"), the operating partnership issued 10.5 million common units to Digital Realty Trust, Inc., which amount is not reflected in the total reported here. On October 9, 2015, Digital Realty completed the Telx Acquisition. The information contained herein does not reflect the effects of the Telx Acquisition.
(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, 1100 Space Park Drive, the eXchange colocation business and other specified assets and liabilities. Includes 397,413 common units held by the members of Cambay Tele.com, LLC.

5

Key Quarterly Financial Data
    
Financial Supplement
Unaudited and dollars in thousands, except per share data
Third Quarter 2015


Shares and Units at End of Quarter
30-Sep-15
30-Jun-15
31-Mar-15
31-Dec-14
30-Sep-14
Common shares outstanding
135,843,684

135,832,492

135,793,668

135,626,255

135,503,184

Common units outstanding
2,835,613

2,930,980

2,924,711

3,013,661

3,124,186

Total Shares and Partnership Units
138,679,297

138,763,472

138,718,379

138,639,916

138,627,370

 
 
 
 
 
 
Enterprise Value
 
 
 
 
 
Market value of common equity (1)
$9,058,532
$9,252,748
$9,149,864
$9,191,826
$8,647,575
Liquidation value of preferred equity
1,335,000

1,085,000

1,085,000

1,085,000

1,085,000

Total debt at balance sheet carrying value
4,748,579

4,968,826

4,817,911

4,673,127

4,739,729

Total Enterprise Value
$15,142,111
$15,306,574
$15,052,775
$14,949,953
$14,472,304
Total debt / total enterprise value
31.4
%
32.5
%
32.0
%
31.3
%
32.8
%
 
 
 
 
 
 
Selected Balance Sheet Data
 
 
 
 
 
Investments in real estate (before depreciation)
$10,280,897
$10,244,536
$10,120,966
$10,077,342
$10,331,214
Total Assets
9,501,013

9,586,009

9,408,426

9,526,784

9,722,007

Total Liabilities
5,465,362

5,695,816

5,550,565

5,612,546

5,618,447

 
 
 
 
 
 
Selected Operating Data
 
 
 
 
 
Total operating revenues
$435,989
$420,295
$406,609
$412,216
$412,186
Total operating expenses (2)
333,453

312,890

300,325

308,403

318,779

Interest expense
48,138

46,114

45,466

46,396

48,169

Net income (loss)
57,842

137,997

122,325

(34,795)

130,161

Net income (loss) available to common stockholders
38,522

117,055

101,728

(52,289)

109,314

 
 
 
 
 
 
Financial Ratios
 
 
 
 
 
EBITDA (3)
$225,388
$297,456
$277,942
$242,605
$308,830
Adjusted EBITDA (4)
250,687

246,548

239,174

241,880

234,858

Net Debt to Adjusted EBITDA (5)
4.7

5.0

5.0

4.8

5.0

GAAP interest expense
48,138

46,114

45,466

46,396

48,169

Fixed charges (6)
70,682

69,910

70,522

72,070

75,069

Interest coverage ratio (7)
5.0

5.0

4.8

4.7

4.4

Fixed charge coverage ratio (8)
3.5

3.5

3.4

3.4

3.1

 
 
 
 
 
 
Profitability Measures
 
 
 
 
 
Net income (loss) per common share - basic
$0.28
$0.86
$0.75
$(0.39)
$0.81
Net income (loss) per common share - diluted
0.28

0.86

0.75

(0.39)

0.80

Funds from operations (FFO) / diluted share and unit (9)
1.28

1.26

1.56

1.40

1.22

Core funds from operations (Core FFO) / diluted share and unit (9)
1.32

1.30

1.27

1.26

1.22

Adjusted funds from operations (AFFO) / diluted share and unit (10)
1.02

1.01

1.03

0.93

0.96

Dividends per share and common unit
0.85

0.85

0.85

0.83

0.83

Diluted FFO payout ratio (11)
66.5
%
67.2
%
54.5
%
59.1
%
68.2
%
Diluted Core FFO payout ratio (12)
64.4
%
65.4
%
66.9
%
65.9
%
68.0
%
Diluted AFFO payout ratio (10) (13)
83.6
%
84.2
%
82.3
%
89.3
%
86.8
%
 
 
 
 
 
 
Portfolio Statistics
 
 
 
 
 
Buildings (14)
191

190

187

188

187

Properties (14)
132

132

130

131

131

Net rentable square feet, excluding development space (14)
21,907,913

21,753,331

22,115,629

22,146,385

21,964,327

Occupancy at end of quarter (15)
93.0
%
93.5
%
92.1
%
93.2
%
93.0
%
Occupied square footage
20,365,597

20,347,649

20,373,106

20,640,405

20,431,569

Space under active development (16)
1,385,315

1,151,299

1,223,238

1,304,853

1,253,692

Space held for development (17)
1,325,282

1,271,565

1,315,299

1,174,957

1,247,686

Weighted average remaining lease term (years) (18)
6.2

6.3

6.3

6.3

6.3

Same capital occupancy at end of quarter (15) (19)
93.9
%
94.8
%
94.7
%
95.1
%
95.2
%


(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 conversion of our series E, series F, series G, series H and series I cumulative redeemable preferred stock upon certain change of control transactions.
(2)
All periods presented exclude change in fair value of contingent consideration and impairment of investments in real estate in order to provide a more comparable operating expense trend. For total operating expenses, see page 12.
(3)
EBITDA is calculated as earnings before interest, taxes, depreciation & amortization. For a discussion of EBITDA, see page 46. For a reconciliation of net income available to common stockholders to EBITDA, see page 45.

6

Key Quarterly Financial Data
    
Financial Supplement
Unaudited and dollars in thousands, except per share data
Third Quarter 2015


(4)
Adjusted EBITDA is EBITDA excluding change in fair value of contingent consideration, severance related accrual, equity acceleration, and legal expenses, gain on sale of property, gain on contribution of properties to unconsolidated joint venture, gain on sale of investment, noncontrolling interests, and preferred stock dividends. For a discussion of Adjusted EBITDA, see page 46. For a reconciliation of net income available to common stockholders to Adjusted EBITDA, see page 45.
(5)
Calculated as total debt at balance sheet carrying value less unrestricted cash and cash equivalents, divided by the product of quarterly Adjusted EBITDA multiplied by four.
(6)
Fixed charges consist of GAAP interest expense, capitalized interest, scheduled debt principal payments and preferred dividends.
(7)
Interest coverage ratio is Adjusted EBITDA divided by GAAP interest expense plus capitalized interest.
(8)
Fixed charge coverage ratio is Adjusted EBITDA divided by fixed charges.
(9)
For a definition and discussion of FFO and core FFO, see page 46. For a reconciliation of net income available to common stockholders to FFO and core FFO, see page 13.
(10)
For a definition and discussion of AFFO, see page 46. For a reconciliation of FFO to AFFO, see page 14.
(11)
Diluted FFO payout ratio is dividends declared per common share and unit divided by diluted FFO per share and unit.
(12)
Diluted core FFO payout ratio is dividends declared per common share and unit divided by diluted core FFO per share and unit.
(13)
Diluted AFFO payout ratio is dividends declared per common share and unit divided by diluted AFFO per share and unit.
(14)
Includes properties held-for-sale and held as investments in unconsolidated joint ventures.
(15)
Occupancy and same-capital occupancy exclude space under active development and space held for development. Occupancy represents consolidated portfolio in addition to our managed portfolio of unconsolidated joint ventures and non-managed unconsolidated joint ventures. 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.
(16)
Space under active development includes current Base Building and Data Centers projects in progress. See page 34.
(17)
Space held for development includes space held for future Data Center development, and excludes space under active development. See page 38.
(18)
Weighted average remaining lease term excludes renewal options and is weighted by net rentable square feet.
(19)
Represents properties owned as of December 31, 2013 with less than 5% of total rentable square feet under development. Excludes properties that were undergoing, or were expected to undergo, development activities in 2014-2015, properties classified as held for sale, and properties sold or contributed to joint ventures for all periods presented. Prior period numbers adjusted to reflect current same-capital pool.


7

Earnings Release
Financial Supplement


Third Quarter 2015

DIGITAL REALTY REPORTS THIRD QUARTER 2015 RESULTS

San Francisco, CA -- October 29, 2015 -- Digital Realty Trust, Inc. (NYSE: DLR), a leading global provider of data center and colocation solutions, announced today financial results for the third quarter of 2015. All per share results are presented on a fully-diluted share and unit basis.

Highlights
•
Reported FFO per share of $1.28 in 3Q15, compared to $1.22 in 3Q14;
•
Reported core FFO per share of $1.32 in 3Q15, compared to $1.22 in 3Q14;
•
Signed leases during 3Q15 expected to generate $33 million in annualized GAAP rental revenue;
•
Revised 2015 core FFO per share outlook to $5.12 - $5.18 from the prior range of $5.05 - $5.15; and
•
Revised 2015 "constant-currency" core FFO per share outlook to $5.27 - $5.33 from the prior range of $5.20 - $5.30.

Financial Results
Revenues were $436 million for the third quarter of 2015, a 4% increase from the previous quarter and a 6% increase over the same quarter last year.
Adjusted EBITDA was $251 million for the third quarter of 2015, a 2% increase from the previous quarter and a 7% increase over the same quarter last year.
Funds from operations (“FFO”) on a diluted basis was $178 million in the third quarter of 2015, or $1.28 per share, compared to $1.26 per share in the second quarter of 2015 and $1.22 per share in the third quarter of 2014.
Excluding certain items that do not represent core expenses or revenue streams, core FFO was $1.32 per share for the third quarter of 2015 compared to $1.30 per share in the second quarter of 2015, and $1.22 per share in the third quarter of 2014.
Net income for the third quarter of 2015 was $58 million, and net income available to common stockholders was $39 million, or $0.28 per diluted share, compared to $0.86 per diluted share in the second quarter of 2015 and $0.80 per diluted share in the third quarter of 2014.

Leasing Activity
“The Digital Realty team kept its collective eye on the ball during a very busy few months and delivered another quarter of solid results, with new leases signed representing $33 million in annualized GAAP rental revenue,” said Chief Executive Officer A. William Stein. 
“We continue to capitalize on our core competencies and execute well with our target customer verticals, including social media, cloud service providers, content delivery networks, financial and IT services, which collectively accounted for the lion's share of our leasing activity again in the third quarter.  We recently welcomed Telx to the Digital Realty team, and together we are focused on successfully integrating our operations to ensure that we maximize revenue synergy opportunities while simultaneously maintaining our current momentum.” 
The weighted-average lag between leases signed during the third quarter of 2015 and the contractual commencement date was 5.4 months.
In addition to new leases signed, Digital Realty also signed renewal leases representing $21 million of annualized GAAP rental revenue during the quarter. Rental rates on renewal leases signed during the third quarter of 2015 rolled up 4% on a cash basis and up 11% on a GAAP basis.

8

Earnings Release
Financial Supplement


Third Quarter 2015

New leases signed during the third quarter of 2015 by region and product type are summarized as follows:
 

North America
 
($ in thousands)
Annualized GAAP Base Rent
 
Square Feet
 
GAAP Base Rent
per Square Foot
 
Megawatts
 
GAAP Base Rent
per Kilowatt
 
 
Turn-Key Flex
 

$28,144

 
153,582

 

$183

 
16

 

$145

 
Colocation
 
1,941

 
8,855

 
219

 
1

 
229

 
Non-Technical
 
225

 
8,348

 
27

 
—

 
—

 
  Total
 

$30,310

 
170,785

 

$177

 
17

 

$148

 

 

 

 

 

 

 
Europe (1)
 

 

 

 

 

 
Turn-Key Flex
 

$1,438

 
5,626

 

$256

 
1

 

$222

 
Powered Base Building
 
3

 
—

 
—

 
—

 
—

 
Colocation
 
854

 
2,856

 
299

 
—

 
293

 
Non-Technical
 
10

 
185

 
52

 
—

 
—

 
  Total
 

$2,305

 
8,667

 

$266

 
1

 

$244

 

 

 

 

 

 

 
Asia Pacific (1)
 

 

 

 

 

 
Turn-Key Flex
 

$—

 
—

 

$—

 
—

 

$—

 
Colocation
 
25

 
73

 
341

 
—

 
259

 
Non-Technical
 
—

 
—

 
—

 
—

 
—

 
  Total
 

$25

 
73

 

$341

 
—

 

$259

 
 
 
 
 
 
 
 
 
 
 
 
 
  Grand Total
 

$32,640

 
179,525

 

$182

 
18

 

$153

Note: Totals may not foot due to rounding differences.
(1) 
Based on quarterly average exchange rates during the three months ended September 30, 2015.


Investment Activity
Subsequent to the end of the quarter, Digital Realty completed the previously announced acquisition of Telx Holdings, Inc. from private equity firms ABRY Partners and Berkshire Partners in a transaction valued at $1.886 billion. The combination approximately doubles Digital Realty's footprint in the rapidly growing colocation business and provides the company's customers access to a leading interconnection platform.

Balance Sheet
Digital Realty had approximately $4.7 billion of total debt outstanding as of September 30, 2015, comprised of $4.4 billion of unsecured debt and approximately $0.3 billion of secured debt. At the end of the third quarter of 2015, net debt-to-adjusted EBITDA was 4.7x, debt-plus-preferred-to-total-enterprise-value was 40.2% and fixed charge coverage was 3.5x.
Subsequent to quarter-end, Digital Realty completed the financing for the Telx acquisition raising total gross proceeds of approximately $1.9 billion of debt and equity capital.
▪
On October 8, 2015, Digital Realty settled its forward equity sale transaction with each of the forward counterparties, delivering 10.5 million shares and receiving gross proceeds of $714 million.
▪
On October 1, 2015, Digital Delta Holdings, LLC, a wholly owned subsidiary of Digital Realty Trust, Inc., issued $500 million of 3.400% Notes due 2020 and $450 million of 4.750% Notes due 2025.
▪
On August 24, 2015, Digital Realty closed an offering of 10 million shares of 6.350% Series I Cumulative Redeemable Preferred Stock at a price of $25.00 per share, generating gross proceeds of $250 million.

9

2015 Guidance
Financial Supplement
 
Third Quarter 2015


2015 Outlook
Digital Realty revised its 2015 core FFO per share outlook to $5.12 - $5.18 from the prior range of $5.05 - $5.15. The revised core FFO per share outlook includes the expected financial impact from the Telx acquisition, but the underlying assumptions summarized in the following table reflect standalone results for Digital Realty only.
 
As of Jan. 5, 2015
 
As of Feb. 12, 2015
 
As of May 5, 2015
 
As of July 30, 2015
 
As of Oct. 29, 2015
Internal Growth
 
 
 
 
 
 
 
 
 
Rental rates on renewal leases
 
 
 
 
 
 
 
 
 
Cash basis
Slightly positive
 
Slightly positive
 
Slightly negative
 
Slightly positive
 
Slightly positive
GAAP basis
Up double digits
 
Up double digits
 
Up high single digits
 
Up high single digits
 
Up low double digits
Year-end portfolio occupancy
93.0% - 94.0%
 
93.0% - 94.0%
 
93.0% - 94.0%
 
93.0% - 94.0%
 
93.0% - 94.0%
"Same-capital" cash NOI growth (1)
2.0% - 4.0%
 
2.0% - 4.0%
 
2.0% - 4.0%
 
2.0% - 4.0%
 
2.0% - 4.0%
Operating margin
72.5% - 73.5%
 
72.5% - 73.5%
 
72.5% - 73.5%
 
72.5% - 73.5%
 
74.0% - 75.0%
Incremental revenue from speculative leasing (2)
 
 
 
 
 
 
 
 
 
Full year forecast
$25 - $30 million
 
$25 - $30 million
 
$30 - $35 million
 
$30 - $35 million
 
$33 - $35 million
Speculative leasing completed to date
($0 million)
 
($5 million)
 
($20 million)
 
($30 million)
 
($33 million)
Speculative leasing embedded in 2015 guidance
$25 - $30 million
 
$20 - $25 million
 
$10 - $15 million
 
$0 - $5 million
 
$0 - $2 million
Overhead load (3)
80 - 90 bps on total assets
 
80 - 90 bps on total assets
 
80 - 90 bps on total assets
 
90 - 100 bps on total assets
 
90 - 100 bps on total assets
Foreign Exchange Rates
 
 
 
 
 
 
 
 
 
U.S. Dollar / Pound Sterling
N/A
 
N/A
 
1.45 - 1.55
 
1.45 - 1.55
 
1.50 - 1.55
U.S. Dollar / Euro
N/A
 
N/A
 
1.05 - 1.10
 
1.05 - 1.10
 
1.05 - 1.10
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
External Growth
 
 
 
 
 
 
 
 
 
Acquisitions
 
 
 
 
 
 
 
 
 
Dollar volume
$0 - $200 million
 
$0 - $200 million
 
$0 - $200 million
 
$0 - $200 million
 
$0 - $200 million
Cap rate
7.5% - 8.5%
 
7.5% - 8.5%
 
7.5% - 8.5%
 
7.5% - 8.5%
 
7.5% - 8.5%
Dispositions
 
 
 
 
 
 
 
 
 
Dollar volume
$175 - $400 million
 
$175 - $400 million
 
$175 - $400 million
 
$205 - $400 million
 
$205 - $400 million
Cap rate
0.0% - 10.0%
 
0.0% - 10.0%
 
0.0% - 10.0%
 
0.0% - 10.0%
 
0.0% - 10.0%
Joint ventures
 
 
 
 
 
 
 
 
 
Dollar volume
$0 - $150 million
 
$0 - $150 million
 
$0 - $150 million
 
$0 - $150 million
 
$0 - $150 million
Cap rate
6.75% - 7.25%
 
6.75% - 7.25%
 
6.75% - 7.25%
 
6.75% - 7.25%
 
6.75% - 7.25%
Development
 
 
 
 
 
 
 
 
 
Capex
$750 - $850 million
 
$750 - $850 million
 
$750 - $850 million
 
$750 - $850 million
 
$600 - $700 million
Average stabilized yields
10.0% - 12.0%
 
10.0% - 12.0%
 
10.0% - 12.0%
 
10.0% - 12.0%
 
10.0% - 12.0%
Enhancements and other non-recurring capex (4)
$20 - $25 million
 
$20 - $25 million
 
$20 - $25 million
 
$20 - $25 million
 
$15 - $20 million
Recurring capex + capitalized leasing costs (5)
$100 - $110 million
 
$100 - $110 million
 
$100 - $110 million
 
$100 - $110 million
 
$100 - $110 million
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
Long-term debt issuance
 
 
 
 
 
 
 
 
 
Dollar amount
$300 - $700 million
 
$300 - $700 million
 
$300 - $700 million
 
$0.5 - $1.0 billion
 
$0.5 - $1.0 billion
Pricing
4.50% - 5.50%
 
4.50% - 5.50%
 
4.50% - 5.50%
 
4.00% - 5.50%
 
4.00% - 5.50%
Timing
Early-to-mid 2015
 
Early-to-mid 2015
 
Early-to-mid 2015
 
Mid-to-late 2015
 
Mid-to-late 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funds From Operations / share (NAREIT-Defined)
$4.95 - $5.05
 
$4.95 - $5.05
 
$5.28 - $5.38
 
$5.33 - $5.43
 
$5.24 - $5.30
Adjustments for non-core items (6)
$0.05
 
$0.05
 
($0.25)
 
($0.28)
 
($0.12)
Core Funds From Operations / share
$5.00 - $5.10
 
$5.00 - $5.10
 
$5.03 - $5.13
 
$5.05 - $5.15
 
$5.12 - $5.18
Foreign currency translation adjustments
N/A
 
N/A
 
$0.15
 
$0.15
 
$0.15
Constant-Currency Core FFO / share
N/A
 
N/A
 
$5.18 - $5.28
 
$5.20 - $5.30
 
$5.27 - $5.33

(1)
The “same-capital” pool includes properties owned as of December 31, 2013 with less than 5% of total rentable square feet under development. It also excludes properties that were undergoing, or were expected to undergo, development activities in 2014-2015. 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), and cash NOI is NOI less straight-line rents and above and below market rent amortization.
(2)
Incremental revenue from speculative leasing represents revenue expected to be recognized in the current year from leases that have not yet been signed.
(3)
Overhead load is defined as General & Administrative expense divided by Total Assets.
(4)
Other non-recurring capex represents costs incurred to enhance the capacity or marketability of operating properties, such as network fiber initiatives and software development costs.
(5)
Recurring capex represents non-incremental improvements required to maintain current revenues, including second-generation tenant improvements and leasing commissions. Capitalized leasing costs include capitalized leasing compensation as well as capitalized internal leasing commissions.
(6)
See “Funds From Operations and Core Funds From Operations” table on page 13 for historical reconciliations of net income available to common stockholders to funds from operations (FFO), which is NAREIT-Defined, and core funds from operations (core FFO).

10

Earnings Release
Financial Supplement


Third Quarter 2015


Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, including FFO, core FFO, "constant-currency" core FFO, and Adjusted EBITDA. A reconciliation from U.S. GAAP net income available to common stockholders to FFO, a definition of FFO, a reconciliation from FFO to core FFO, and a definition of core FFO are included as an attachment to this press release. A reconciliation from U.S. GAAP net income available to common stockholders to Adjusted EBITDA, a definition of Adjusted EBITDA, a definition of net-debt-to-Adjusted EBITDA, debt-plus-preferred-to-total-enterprise-value, and a definition of fixed charge coverage ratio are included as an attachment to this press release.

Investor Conference Call
Prior to Digital Realty’s conference call today at 5:30 p.m. EDT / 2:30 p.m. PDT, Digital Realty will post a presentation to the Investors section of the company’s website at http://investor.digitalrealty.com. The presentation is designed to accompany the discussion of the company's third quarter 2015 financial results and operating performance. The conference call will feature Chief Executive Officer A. William Stein and Chief Financial Officer Andrew P. Power.
To participate in the live call, investors are invited to dial +1 (888) 317-6003 (for domestic callers) or +1 (412) 317-6061 (for international callers) and reference the conference ID# 8772359 at least five minutes prior to start time. A live webcast of the call will be available via the Investors section of Digital Realty’s website at http://investor.digitalrealty.com.
Telephone and webcast replays will be available one hour after the call until November 30, 2015. The telephone replay can be accessed by dialing +1 (877) 344-7529 (for domestic callers) or +1 (412) 317-0088 (for international callers) and providing the conference ID# 10073885. The webcast replay can be accessed on Digital Realty’s website.

About Digital Realty
Digital Realty Trust, Inc. supports the data center and colocation strategies of firms across its secure, network-rich portfolio of data centers located throughout North America, Europe, Asia and Australia. Digital Realty’s clients include domestic and international companies of all sizes, ranging from financial services, cloud and information technology services, to manufacturing, energy, gaming, life sciences and consumer products.
Additional information about Digital Realty is included in the Company Overview, available on the Investors page of Digital Realty’s website at www.digitalrealty.com. The Company Overview is updated periodically, and may disclose material information and updates. To receive e-mail alerts when the Company Overview is updated, please visit the Investors page of Digital Realty’s website.

Contact Information
John J. Stewart
Senior Vice President
Investor Relations
Digital Realty Trust, Inc.
+1 (415) 738-6500


11

Consolidated Quarterly Statements of Operations
Financial Supplement
Unaudited and in thousands, except share and per share data
Third Quarter 2015

 
 
Three Months Ended
Nine Months Ended
 
 
30-Sep-15
30-Jun-15
31-Mar-15
31-Dec-14
30-Sep-14
30-Sep-15
30-Sep-14
Rental revenues
 

$338,330


$330,676


$319,166


$319,816


$317,064


$988,172


$936,270

Tenant reimbursements - Utilities
 
70,148

62,305

59,764

59,830

65,604

192,217

186,850

Tenant reimbursements - Other
 
25,336

25,267

26,065

28,887

26,605

76,668

74,667

Fee income
 
1,595

1,549

1,614

1,871

2,748

4,758

5,397

Other
 
580

498

—

1,812

165

1,078

1,038

Total Operating Revenues
 

$435,989


$420,295


$406,609


$412,216


$412,186


$1,262,893


$1,204,222

 
 
 
 
 
 
 
 
 
Utilities
 

$73,887


$64,669


$62,970


$62,560


$69,388


$201,526


$196,907

Rental property operating
 
36,401

36,035

34,650

33,211

32,017

107,087

95,988

Repairs & maintenance
 
30,250

28,835

26,943

31,783

29,489

86,027

82,691

Property taxes
 
19,953

20,900

23,263

23,053

25,765

64,116

68,485

Insurance
 
2,140

2,154

2,155

2,180

2,145

6,449

6,463

Change in fair value of contingent consideration
 
(1,594
)
352

(43,034
)
(3,991
)
(1,465
)
(44,276
)
(4,102
)
Depreciation & amortization
 
136,974

131,524

129,073

133,327

137,474

397,571

405,186

General & administrative
 
26,431

24,312

19,798

21,480

20,709

70,541

59,018

Severance related accrual, equity acceleration, and legal expenses
 
(3,676
)
1,301

1,396

—

—

(979
)
12,690

Transactions
 
11,042

3,166

93

323

144

14,301

980

Impairment of investments in real estate
 
—

—

—

113,970

12,500

—

12,500

Other expenses
 
51

(6
)
(16
)
486

1,648

29

2,584

Total Operating Expenses
 

$331,859


$313,242


$257,291


$418,382


$329,814


$902,392


$939,390

 
 
 
 
 
 
 
 
 
Operating Income (Loss)
 

$104,130


$107,053


$149,318


($6,166
)

$82,372


$360,501


$264,832

 
 
 
 
 
 
 
 
 
Equity in earnings of unconsolidated joint ventures
 

$4,169


$3,383


$4,618


$3,776


$3,455


$12,170


$9,513

Gain (loss) on sale of property
 
(207
)
76,669

17,820

—

—

94,282

15,945

Gain on contribution of properties to unconsolidated JV
 
—

—

—

—

93,498

—

95,404

Gain on sale of investment
 
—

—

—

14,551

—

—

—

Interest and other income
 
(358
)
(231
)
(2,290
)
641

378

(2,879
)
2,022

Interest expense
 
(48,138
)
(46,114
)
(45,466
)
(46,396
)
(48,169
)
(139,718
)
(144,689
)
Tax (expense)
 
(1,754
)
(2,615
)
(1,675
)
(1,201
)
(1,178
)
(6,044
)
(4,037
)
Loss from early extinguishment of debt
 
—

(148
)
—

—

(195
)
(148
)
(780
)
Net Income (Loss)
 

$57,842


$137,997


$122,325


($34,795
)

$130,161


$318,164


$238,210

 
 
 
 
 
 
 
 
 
Net (income) loss attributable to noncontrolling interests
 
(864
)
(2,486
)
(2,142
)
961

(2,392
)
(5,492
)
(4,190
)
Net Income (Loss) Attributable to Digital Realty Trust, Inc.
 

$56,978


$135,511


$120,183


($33,834
)

$127,769


$312,672


$234,020

 
 
 
 
 
 
 
 
 
Preferred stock dividends
 
(18,456
)
(18,456
)
(18,455
)
(18,455
)
(18,455
)
(55,367
)
(49,010
)
Net Income (Loss) Available to Common Stockholders
 

$38,522


$117,055


$101,728


($52,289
)

$109,314


$257,305


$185,010

 
 
 
 
 
 
 
 
 
Weighted-average shares outstanding - basic
 
135,832,503

135,810,060

135,704,525

135,544,597

135,492,618

135,782,831

132,635,894

Weighted-average shares outstanding - diluted
 
138,259,936

136,499,004

136,128,800

135,544,597

135,946,533

136,920,477

132,852,966

Weighted-average fully diluted shares and units
 
139,192,198

139,256,470

138,831,268

138,757,650

138,762,045

139,050,965

138,216,486

 
 
 
 
 
 
 
 
 
Net income (loss) per share - basic
 
$0.28
$0.86
$0.75
($0.39)
$0.81
$1.89
$1.39
Net income (loss) per share - diluted
 
$0.28
$0.86
$0.75
($0.39)
$0.80
$1.88
$1.39

12

Funds From Operations and Core Funds From Operations
 
Financial Supplement
Unaudited and in thousands, except per share data
Third Quarter 2015

Reconciliation of Net Income to Funds From Operations (FFO)
Three Months Ended
Nine Months Ended
30-Sep-15
30-Jun-15
31-Mar-15
31-Dec-14
30-Sep-14
30-Sep-15
30-Sep-14
 
 
 
 
 
 
 
 
Net Income (Loss) Available to Common Stockholders

$38,522


$117,055


$101,728


($52,289
)

$109,314


$257,305


$185,010

Adjustments:
 
 
 
 
 
 
 
Noncontrolling interests in operating partnership
747

2,377

2,026

(1,074
)
2,272

5,150

3,838

Real estate related depreciation & amortization (1)
135,613

130,198

127,823

132,100

136,289

393,634

401,723

Unconsolidated JV real estate related depreciation & amortization
2,761

3,187

2,603

2,173

1,934

8,551

5,364

(Gain) loss on sale of property
207

(76,669
)
(17,820
)
—

—

(94,282
)
(15,945
)
Gain on contribution of properties to unconsolidated JV
—

—

—

—

(93,498
)
—

(95,404
)
Impairment of investments in real estate
—

—

—

113,970

12,500

—

12,500

Funds From Operations

$177,850


$176,148


$216,360


$194,880


$168,811


$570,358


$497,086

 
 
 
 
 
 
 
 
Add: Interest and amortization of debt issuance costs on 2029 Debentures
—

—

—

—

—

—

4,725

 
 
 
 
 
 
 
 
Funds From Operations - diluted

$177,850


$176,148


$216,360


$194,880


$168,811


$570,358


$501,811

 
 
 
 
 
 
 
 
Weighted-average shares and units outstanding - basic
138,468

138,568

138,407

138,327

138,308

138,481

135,382

Weighted-average shares and units outstanding - diluted (2)
139,192

139,257

138,831

138,757

138,762

139,051

138,217

 
 
 
 
 
 
 
 
Funds From Operations per share - basic
$1.28
$1.27
$1.56
$1.41
$1.22
$4.12
$3.67
 
 
 
 
 
 
 
 
Funds From Operations per share - diluted (2)
$1.28
$1.26
$1.56
$1.40
$1.22
$4.10
$3.63
Reconciliation of FFO to Core FFO
Three Months Ended
Nine Months Ended
30-Sep-15
30-Jun-15
31-Mar-15
31-Dec-14
30-Sep-14
30-Sep-15
30-Sep-14
 
 
 
 
 
 
 
 
Funds From Operations - diluted

$177,850


$176,148


$216,360


$194,880


$168,811


$570,358


$501,811

Termination fees and other non-core revenues (3)
(580
)
(313
)
1,573

(2,584
)
(165
)
680

(3,085
)
Gain on sale of investment
—

—

—

(14,551
)
—

—

—

Significant transaction expenses
11,042

3,166

93

323

144

14,301

980

Loss from early extinguishment of debt
—

148

—

—

195

148

780

Change in fair value of contingent consideration (4)
(1,594
)
352

(43,034
)
(3,991
)
(1,465
)
(44,276
)
(4,102
)
Equity in earnings adjustment for non-core items
—

—

—

—

—

—

843

Severance related accrual, equity acceleration, and legal expenses (5)
(3,676
)
1,301

1,396

—

—

(979
)
12,690

Other non-core expense adjustments (6)
51

(29
)
(30
)
453

1,588

(8
)
2,239

Core Funds From Operations - diluted

$183,093


$180,773


$176,358


$174,530


$169,108


$540,224


$512,156

 
 
 
 
 
 
 
 
Weighted-average shares and units outstanding - diluted (2)
139,192

139,257

138,831

138,757

138,762

139,051

138,217

 
 
 
 
 
 
 
 
Core Funds From Operations per share - diluted (2)
$1.32
$1.30
$1.27
$1.26
$1.22
$3.89
$3.71

(1)
Real Estate Related Depreciation & Amortization:
 
Three Months Ended
Nine Months Ended
 
30-Sep-15
30-Jun-15
31-Mar-15
31-Dec-14
30-Sep-14
30-Sep-15
30-Sep-14
Depreciation & amortization per income statement

$136,974


$131,524


$129,073


$133,327


$137,474


$397,571


$405,186

Non-real estate depreciation
(1,361
)
(1,326
)
(1,250
)
(1,227
)
(1,185
)
(3,937
)
(3,463
)
Real Estate Related Depreciation & Amortization

$135,613


$130,198


$127,823


$132,100


$136,289


$393,634


$401,723


(2)
For all periods presented, we have excluded the effect of dilutive series E, series F, series G, series H and series I 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, series F, series G, series H and series I preferred stock, as applicable, which we consider highly improbable. In addition, the 5.50% exchangeable senior debentures due 2029 were exchangeable for 0 and 2,618 common shares on a weighted average basis for the three and nine months ended September 30, 2014, respectively. See page 10 for calculations of diluted FFO available to common stockholders and unitholders and weighted average common stock and units outstanding.
(3)
Includes lease termination fees and certain other adjustments that are not core to our business.
(4)
Relates to earn-out contingencies in connection with the Sentrum and Singapore (29A international Business Park) acquisitions. The Sentrum earn-out contingency expired in July 2015 and the Singapore earn-out contingency will expire in November 2020 and will be reassessed on a quarterly basis. During the first quarter of 2015, we reduced the fair value of the earnout related to Sentrum by approximately $44.8 million.  The adjustment was the result of an evaluation by management that no additional leases would be executed for vacant space by the contingency expiration date. 
(5)
Relates to severance and other charges related to the departure of company executives.
(6)
Includes reversal of accruals and certain other adjustments that are not core to our business. Construction management expenses are included in Other expenses on the income statement but are not added back to core FFO.

13


Adjusted Funds From Operations (AFFO)
Financial Supplement
Unaudited and in thousands, except per share data
Third Quarter 2015


Reconciliation of FFO to AFFO
Three Months Ended
Nine Months Ended
30-Sep-15 (1)
30-Jun-15 (1)
31-Mar-15 (1)
31-Dec-14
30-Sep-14
30-Sep-15
30-Sep-14
 
 
 
 
 
 
 
 
FFO available to common stockholders and unitholders
$177,850
$176,148
$216,360
$194,880
$168,811
$570,358
$497,086
Adjustments:
 
 
 
 
 
 
 
Non-real estate depreciation
1,361

1,326

1,250

1,227

1,185

3,936

3,463

Amortization of deferred financing costs
2,076

2,069

2,216

2,207

2,275

6,360

6,762

Amortization of debt discount/premium
557

546

582

521

487

1,685

1,203

Non-cash stock-based compensation expense
3,831

4,518

2,795

2,530

2,849

11,144

9,388

Non-cash stock-based compensation acceleration
(5,626
)
—

170

—

—

(5,456
)
6,101

Loss from early extinguishment of debt
—

148

—

—

195

148

781

Straight-line rents, net
(13,499
)
(14,407
)
(13,294
)
(18,558
)
(17,710
)
(41,200
)
(57,280
)
Above- and below-market rent amortization
(2,174
)
(2,359
)
(2,324
)
(2,273
)
(2,370
)
(6,856
)
(7,710
)
Change in fair value of contingent consideration (2)
(1,594
)
352

(43,034
)
(3,991
)
(1,465
)
(44,276
)
(4,102
)
Gain on sale of investment
—

—

—

(14,551
)
—

—

—

Non-cash tax expense
680

1,066

557

173

50

2,303

663

Capitalized leasing compensation
(6,268
)
(4,215
)
(3,028
)
(6,594
)
(6,641
)
(13,511
)
(20,426
)
Recurring capital expenditures (3)
(14,716
)
(23,708
)
(18,066
)
(21,040
)
(11,481
)
(56,490
)
(31,521
)
Capitalized internal leasing commissions
(907
)
(888
)
(826
)
(5,331
)
(3,488
)
(2,621
)
(12,987
)
AFFO available to common stockholders and unitholders - basic (4)
$141,571
$140,596
$143,359
$129,200
$132,697
$425,525
$391,421
 
 
 
 
 
 
 
 
Weighted-average shares and units outstanding - basic
138,468

138,568

138,407

138,327

138,308

138,481

135,382

Weighted-average shares and units outstanding - diluted (5)
139,192

139,257

138,831

138,757

138,762

139,051

138,217

 
 
 
 
 
 
 
 
AFFO available to common stockholders and unitholders - basic
$141,571
$140,596
$143,359
$129,200
$132,697
$425,525
$391,421
 
 
 
 
 
 
 
 
Add: Interest and amortization of debt issuance costs on 2029 Debentures
—

—

—

—

—

—

4,725

 
 
 
 
 
 
 
 
AFFO available to common stockholders and unitholders - diluted
$141,571
$140,596
$143,359
$129,200
$132,697
$425,525
$396,146
 
 
 
 
 
 
 
 
AFFO per share - diluted (4)
$1.02
$1.01
$1.03
$0.93
$0.96
$3.06
$2.87
 
 
 
 
 
 
 
 
Dividends per share and common unit
$0.85
$0.85
$0.85
$0.83
$0.83
$2.55
$2.49
 
 
 
 
 
 
 
 
Diluted AFFO Payout Ratio
83.6
%
84.2
%
82.3
%
89.1
%
86.8
%
83.3
%
86.9
%
 
Three Months Ended
Nine Months Ended
Share Count Detail
30-Sep-15
30-Jun-15
31-Mar-15
31-Dec-14
30-Sep-14
30-Sep-15
30-Sep-14
Weighted Average Common Stock and Units Outstanding
138,468

138,568

138,407

138,327

138,308

138,481

135,382

Add: Effect of dilutive securities (excludes 5.50% debentures)
724

689

424

430

454

570

217

Add: Effect of dilutive 5.50% exchangeable senior debentures
—

—

—

—

—

—

2,618

Weighted Avg. Common Stock and Units Outstanding - diluted
139,192

139,257

138,831

138,757

138,762

139,051

138,217


(1)
Beginning in the first quarter of 2015, we changed the presentation of certain capital expenditures.  Infrequent expenditures for capitalized replacements and upgrades are now categorized as Recurring capital expenditures (categorized as Enhancements and Other Non-Recurring capital expenditures in 2014).  First-generation leasing costs are now classified as Development capital expenditures (categorized as recurring capital expenditures in 2014).
(2)
Relates to earn-out contingencies in connection with the Sentrum and Singapore (29A International Business Park) acquisitions. The Sentrum earn-out contingency expired in July 2015 and the Singapore earn-out contingency will expire in November 2020 and will be reassessed on a quarterly basis. During the first quarter of 2015, we reduced the fair value of the earnout related to Sentrum by approximately $44.8 million.  The adjustment was the result of an evaluation by management that no additional leases would be executed for vacant space by the contingency expiration date. 
(3)
For a definition of recurring capital expenditures, see page 37.
(4)
For a definition and discussion of AFFO, see page 46. For a reconciliation of net income available to common stockholders to FFO, see page 13.
(5)
For all periods presented, we have excluded the effect of dilutive series E, series F, series G, series H and series I 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, series F, series G, series H and series I preferred stock, as applicable, which we consider highly improbable. In addition, the 5.50% exchangeable senior debentures due 2029 were exchangeable for 0 and 2,618 common shares on a weighted average basis for the three and nine months ended September 30, 2014, respectively. See above for calculations of diluted FFO available to common stockholders and unitholders and weighted average common stock and units outstanding.

14

Consolidated Balance Sheets
Financial Supplement
Unaudited and in thousands, except share and per share data
Third Quarter 2015


 
30-Sep-15
30-Jun-15
31-Mar-15
31-Dec-14
30-Sep-14
Assets
 
 
 
 
 
Investments in real estate:
 
 
 
 
 
Real estate

$9,473,253


$9,353,820


$9,146,341


$9,027,600


$9,213,833

Construction in progress
570,598

646,012

735,544

809,406

876,494

Land held for future development
133,343

141,294

135,606

145,607

146,390

Investments in Real Estate

$10,177,194


$10,141,126


$10,017,491


$9,982,613


$10,236,717

Accumulated depreciation & amortization
(2,137,631
)
(2,033,289
)
(1,962,966
)
(1,874,054
)
(1,840,379
)
Net Investments in Properties

$8,039,563


$8,107,837


$8,054,525


$8,108,559


$8,396,338

Investment in unconsolidated joint ventures
103,703

103,410

103,475

94,729

94,497

Net Investments in Real Estate

$8,143,266


$8,211,247


$8,158,000


$8,203,288


$8,490,835

Cash and cash equivalents
22,998

49,989

30,969

34,814

30,927

Accounts and other receivables (1)
157,994

126,734

112,995

135,931

140,463

Deferred rent
475,796

467,262

455,834

447,643

442,358

Acquired above-market leases, net
30,617

33,936

34,757

38,605

42,477

Acquired in-place lease value and deferred leasing costs, net
405,824

424,229

434,917

456,962

461,243

Deferred financing costs, net
29,173

30,203

28,243

30,821

33,761

Restricted cash
12,500

18,557

18,294

18,062

19,587

Assets associated with real estate held for sale
173,461

171,990

81,667

120,471

—

Other assets
49,384

51,862

52,750

40,188

60,356

Total Assets

$9,501,013


$9,586,009


$9,408,426


$9,526,784


$9,722,007

 
 
 
 
 
 
Liabilities and Equity
 
 
 
 
 
Global unsecured revolving credit facility

$688,957


$777,013


$826,906


$525,951


$485,023

Unsecured term loan
938,276

961,098

942,006

976,600

1,002,186

Unsecured senior notes, net of discount
2,816,359

2,856,408

2,672,472

2,791,758

2,835,478

Mortgage loans, net of premiums
304,987

374,307

376,527

378,818

417,042

Accounts payable and other accrued liabilities
513,555

516,232

523,948

605,923

648,314

Accrued dividends and distributions
—

—

—

115,019

—

Acquired below-market leases
88,632

94,312

97,234

104,235

110,708

Security deposits and prepaid rent
107,704

109,005

108,244

108,478

119,696

Liabilities associated with assets held for sale
6,892

7,441

3,228

5,764

—

Total Liabilities

$5,465,362


$5,695,816


$5,550,565


$5,612,546


$5,618,447

 
 
 
 
 
 
Equity
 
 
 
 
 
Preferred Stock: $0.01 par value per share, 70,000,000 shares authorized:
 
 
 
 
 
Series E Cumulative Redeemable Preferred Stock (2)

$277,172


$277,172


$277,172


$277,172


$277,172

Series F Cumulative Redeemable Preferred Stock (3)
176,191

176,191

176,191

176,191

176,191

Series G Cumulative Redeemable Preferred Stock (4)
241,468

241,468

241,468

241,468

241,468

Series H Cumulative Redeemable Preferred Stock (5)
353,290

353,290

353,290

353,290

353,300

Series I Cumulative Redeemable Preferred Stock (6)
241,683

—

—

—

—

Common Stock: $0.01 par value per share, 215,000,000 shares authorized (7)
1,351

1,351

1,350

1,349

1,348

Additional paid-in capital
3,977,945

3,974,398

3,967,846

3,970,438

3,964,876

Dividends in excess of earnings
(1,185,633
)
(1,108,701
)
(1,110,298
)
(1,096,603
)
(931,777
)
Accumulated other comprehensive (loss) income, net
(87,988
)
(67,324
)
(91,562
)
(45,046
)
(20,470
)
Total Stockholders' Equity

$3,995,479


$3,847,845


$3,815,457


$3,878,259


$4,062,108

 
 
 
 
 
 
Noncontrolling Interests
 
 
 
 
 
Noncontrolling interest in operating partnership

$33,411


$35,577


$35,596


$29,188


$34,632

Noncontrolling interest in consolidated joint ventures
6,761

6,771

6,808

6,791

6,820

Total Noncontrolling Interests

$40,172


$42,348


$42,404


$35,979


$41,452

 
 
 
 
 
 
Total Equity

$4,035,651


$3,890,193


$3,857,861


$3,914,238


$4,103,560

 
 
 
 
 
 
Total Liabilities and Equity

$9,501,013


$9,586,009


$9,408,426


$9,526,784


$9,722,007


(1)
Net of allowance for doubtful accounts of $7.041 and $6,302 as of September 30, 2015 and December 31, 2014, respectively.
(2)
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 September 30, 2015 and December 31, 2014, respectively.
(3)
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 September 30, 2015 and December 31, 2014, respectively.
(4)
Series G Cumulative Redeemable Preferred Stock, 5.875%, $250,000 and $250,000 liquidation preference, respectively ($25.00 per share), 10,000,000 and 10,000,000 shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively.
(5)
Series H Cumulative Redeemable Preferred Stock, 7.375%, $365,000 and $365,000 liquidation preference, respectively ($25.00 per share), 14,600,000 and 14,600,000 shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively.
(6)
Series I Cumulative Redeemable Preferred Stock, 6.350%, $250,000 and $0 liquidation preference, respectively ($25.00 per share), 10,000,000 and 0 shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively.
(7)
Common Stock: 135,843,684 and 135,626,255 shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively.

15

Components of Net Asset Value (NAV) (1)
Financial Supplement
In thousands
Third Quarter 2015


Consolidated Properties Cash Net Operating Income (NOI) (2), Annualized (3)
 
Internet Gateway (4)

$204,224

Turn-Key Flex® (4)
510,560

Powered Base Building® (4)
204,224

Colo & Non-tech (4)
102,112

less: Partners' share of consolidated JVs
(518
)
Dispositions & expirations
(22,000
)
3Q15 carry-over & remaining FY15-16 backlog Cash NOI (stabilized) (5)
44,233

Total Consolidated Cash NOI, Annualized

$1,042,835

 
 
Digital Realty's Pro Rata Share of Unconsolidated JV Cash NOI
 
Turn-Key Flex®

$22,858

Powered Base Building®
9,626

Total Unconsolidated Cash NOI, Annualized

$32,484

 
 
Other Income
 
Development and Management Fees (net), Annualized

$6,288

 
 
Other Assets
 
Pre-stabilized inventory, at cost (6)

$212,013

Land held for development
133,343

Development CIP (7)
570,598

less: Investment associated with FY15-16 Backlog NOI
(162,000
)
Cash and cash equivalents
22,998

Restricted cash
12,500

Accounts and other receivables, net
157,994

Other assets
49,384

less: Partners' share of consolidated JV assets
(101
)
Total Other Assets

$996,729

 
 
Liabilities
 
Global unsecured revolving credit facility

$688,957

Unsecured term loan
938,276

Unsecured senior notes
2,816,359

add: Unamortized discounts
17,601

Mortgage loans, excluding premiums
304,512

Accounts payable and other accrued liabilities (8)
513,555

Security deposits and prepaid rents
107,704

Liabilities associated with assets held for sale
6,892

Backlog NOI cost to complete (9)
152,000

Preferred stock, at liquidation value
1,335,000

Digital Realty's share of unconsolidated JV debt
137,202

Total Liabilities

$7,018,058

 
 
Diluted Shares and Units Outstanding
139,403


(1)
Includes Digital Realty's share of backlog leasing at unconsolidated JV properties.
(2)
For a definition and discussion of NOI and Cash NOI and a reconciliation of operating income to NOI and Cash NOI, see pages 46-47.
(3)
Annualized Cash NOI is calculated by multiplying results for the most recent quarter by four. Annualized results may not be indicative of any four-quarter period and do not take into account scheduled lease expirations, among other things. Annualized data is presented for illustrative purposes only.
(4)
Reflects annualized 3Q15 Cash NOI of $1,021.1 million. NOI is allocated 20% to Internet Gateway, 50% to Turn-Key Flex®, 20% to Powered Base Building®, and 10% to Colo & Non-tech. Actual Cash NOI allocable to each product or property type may be different.
(5)
Estimated Cash NOI related to signed leasing expected to commence through FY16. Includes Digital Realty's share of signed leasing at unconsolidated JV properties.
(6)
Includes Digital Realty's share of cost at unconsolidated JV properties.
(7)
See page 36 for further details on the breakdown of the CIP balance.
(8)
Includes net deferred tax liability of approximately $135.4 million.
(9)
Includes Digital Realty's share of cost to complete at unconsolidated joint venture properties.

16

Consolidated Debt Analysis
Financial Supplement
Unaudited, in thousands
Third Quarter 2015


 
As of September 30, 2015
 
Maturity Date
Principal Balance
% of Total Debt
Interest Rate
Interest Rate
Including Swaps
Global Unsecured Revolving Credit Facility
 
 
 
 
 
Global unsecured revolving credit facility
November 3, 2018 (1)

$688,957

 
 
 
Total Global Unsecured Revolving Credit Facility
 

$688,957

15
%
1.65
%
 
Unsecured Term Loan
 
 
 
 
 
Unhedged variable rate portion of term loan
April 16, 2018 (1)

$469,134

 
 
 
Hedged variable rate portion of term loan
April 16, 2018 (1)
469,142

 
 
 
Total Unsecured Term Loan
 

$938,276

20
%
1.72
%
1.94
%
Prudential Unsecured Senior Notes
 
 
 
 
 
Series C
January 6, 2016

$25,000

 
9.68
%
 
Series E
January 20, 2017
50,000

 
5.73
%
 
Total Prudential Unsecured Senior Notes
 

$75,000

2
%
 
 
Senior Notes
 
 
 
 
 
5.875% notes due 2020
February 1, 2020

$500,000

 
5.88
%
 
5.250% notes due 2021
March 15, 2021
400,000

 
5.25
%
 
3.950% notes due 2022
July 1, 2022
500,000

 
3.95
%
 
3.625% notes due 2022
October 1, 2022
300,000

 
3.63
%
 
4.750% notes due 2023
October 13, 2023
453,840

 
4.75
%
 
4.250% notes due 2025
January 17, 2025
605,120

 
4.25
%
 
Unamortized discounts
 
(17,601
)
 
 
 
Total Senior Notes
 

$2,741,359

58
%
 
 
Total Unsecured Senior Notes (4)
 

$2,816,359

59
%
 
 
Mortgage Loans
 
 
 
 
 
8025 North Interstate 35
March 6, 2016

$5,857

 
4.09
%
 
600 West Seventh Street
March 15, 2016
46,466

 
5.80
%
 
34551 Ardenwood Boulevard
November 11, 2016
50,700

 
5.95
%
 
2334 Lundy Place
November 11, 2016
36,875

 
5.96
%
 
1100 Space Park Drive
December 11, 2016
50,648

 
5.89
%
 
2045 & 2055 Lafayette Street
February 6, 2017
61,728

 
5.93
%
 
150 South First Street
February 6, 2017
48,699

 
6.30
%
 
731 East Trade Street
July 1, 2020
3,539

 
8.22
%
 
Unamortized net premiums
 
475

 
 
 
Total Mortgage Loans
 

$304,987

6
%
 
 
Total Indebtedness
 

$4,748,579

100
%
 
 
Debt Summary
 
 
 
 
 
Total unhedged variable rate debt
 

$1,158,091

24%
 
 
Total fixed rate / hedged variable rate debt
 
3,590,488

76%
 
 
Total Consolidated Debt
 

$4,748,579

100%
 
3.80% (2)

Global Unsecured Revolving Credit Facility Detail as of September 30, 2015




Maximum Available
Existing Capacity (3)
Currently Drawn




Global Unsecured Revolving Credit Facility

$1,874,717


$1,180,260


$688,957


(1)
Maturity dates assume that all extensions will be exercised.
(2)
Debt instruments shown at coupon rates.
(3)
Net of letters of credit issued of $5.5 million.
(4)
Does not include our 3.400% Notes due 2020 and 4.750% Notes due 2025 issued on October 1, 2015.

17


Debt Maturities
Financial Supplement
Unaudited, in thousands
Third Quarter 2015


 
As of September 30, 2015
 
Interest Rate
2015
2016
2017
2018
2019
Thereafter
Total
Global Unsecured Revolving Credit Facility (1)
 
 
 
 
 
 
 
 
Global unsecured revolving credit facility
 
—

—

—


$688,957

—

—


$688,957

Total Global Unsecured Revolving Credit Facility
1.65%
—

—

—


$688,957

—

—


$688,957

Unsecured Term Loan (1)
 
 
 
 
 
 
 
 
Unhedged variable rate portion of term loan
 
—

—

—


$469,134

—

—


$469,134

Hedged variable rate portion of term loan
 
—

—

—

469,142

—

—

469,142

Total Unsecured Term Loan
1.94% (2)
—

—

—


$938,276

—

—


$938,276

Prudential Unsecured Senior Notes
 
 
 
 
 
 
 
 
Series C
9.68%
—


$25,000

—

—

—

—


$25,000

Series E
5.73%
—

—

50,000

—

—

—

50,000

Total Prudential Unsecured Senior Notes
7.05%
—


$25,000


$50,000

—

—

—


$75,000

Senior Notes (3)
 
 
 
 
 
 
 
 
5.875% notes due 2020
5.88%
—

—

—

—

—

500,000


$500,000

5.250% notes due 2021
5.25%
—

—

—

—

—

400,000

400,000

3.950% notes due 2022
3.95%
—

—

—

—

—

500,000

500,000

3.625% notes due 2022
3.63%
—

—

—

—

—

300,000

300,000

4.750% notes due 2023
4.75%
—

—

—

—

—

453,840

453,840

4.250% notes due 2025
4.25%
—

—

—

—

—

605,120

605,120

Total Senior Notes
4.65%
—

—

—

—

—


$2,758,960


$2,758,960

Mortgage Loans
 
 
 
 
 
 
 
 
2045 & 2055 Lafayette Street
5.93%

$290


$1,195


$60,243

—

—

—


$61,728

34551 Ardenwood Boulevard
5.95%
223

50,477

—

—

—

—

50,700

1100 Space Park Drive
5.89%
225

50,423

—

—

—

—

50,648

150 South First Street
6.30%
215

878

47,606

—

—

—

48,699

600 West Seventh Street
5.80%
466

46,000

—

—

—

—

46,466

2334 Lundy Place
5.96%
163

36,712

—

—

—

—

36,875

8025 North Interstate 35
4.09%
68

5,789

—

—

—

—

5,857

731 East Trade Street
8.22%
120

503

546

593

644

1,133

3,539

Total Mortgage Loans
5.96%

$1,770


$191,977


$108,395


$593


$644


$1,133


$304,512

 
 
 
 
 
 
 
 
 
Total unhedged variable rate debt
 
—

—

—


$1,150,681

—

—


$1,150,681

Total fixed rate / hedged variable rate debt
 
1,770

216,977

158,395

477,145

644

2,760,093

3,615,024

Total Debt
3.80%

$1,770


$216,977


$158,395


$1,627,826


$644


$2,760,093


$4,765,705

Weighted Average Interest Rate
 
—
%
6.29
%
5.98
%
1.80
%
—
%
4.65
%
3.80
%
Summary
 
 
 
 
 
 
 
Weighted Average Term to Initial Maturity
 
 
4.7 Years
Weighted Average Maturity (assuming exercise of extension options)
 
 
5.0 Years

(1)
Assumes all extensions will be exercised.
(2)
Interest rate including swaps.
(3)
Does not include our 3.400% Notes due 2020 and 4.750% Notes due 2025 issued on October 1, 2015.
Note: Total excludes ($17,126), net premiums/(discounts) which consists of $475 of loan premiums and ($4,329), ($549), ($2,912), ($2,400), ($3,691) and ($3,720) of debt discount on 5.875% unsecured senior notes due 2020, 5.250% unsecured senior notes due 2021, 3.625% unsecured senior notes due 2022, 3.950% unsecured senior notes due 2022, 4.750% unsecured senior notes due 2023, and 4.250% unsecured senior notes due 2025, respectively.

18

Debt Analysis & Covenant Compliance
Financial Supplement
Unaudited
Third Quarter 2015


 
As of September 30, 2015
 

5.875% Notes due 2020
5.250% Notes due 2021
 
3.950% Notes due 2022
3.625% Notes due 2022
4.750% Notes due 2023
4.250% Notes due 2025
 
Global Unsecured Revolving Credit Facility
 
Required
 
Actual
 
Actual
 
Required
 
Actual
Debt Covenant Ratios (1)
 
 
 
 
 
 
 
 
 
Total outstanding debt / total assets (2)
Less than 60%
 
40
%
 
37
%
 
Less than 60% (3)
 
33
%
Secured debt / total assets (4)
Less than 40%
 
3
%
 
2
%
 
Less than 40%
 
3
%
Total unencumbered assets / unsecured debt
Greater than 150%
 
244
%
 
264
%
 
N/A
 
 N/A

Consolidated EBITDA / interest expense (5)
Greater than 1.5x
 
4.7x

 
4.7x

 
N/A
 
 N/A

Fixed charge coverage
 
 
N/A

 
N/A

 
Greater than 1.5x
 
3.5x

Unsecured debt / total unencumbered asset value (6)
 
 
N/A

 
N/A

 
Less than 60%
 
35
%
Unencumbered assets debt service coverage ratio
 
 
N/A

 
N/A

 
Greater than 1.5x
 
5.9x


(1)
For a definition of the 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 and Supplemental Indenture No. 1 dated March 8, 2011, which governs the 5.250% Notes due 2021; the Indenture and Supplemental Indenture No. 1 dated June 23, 2015, which governs the 3.950% Notes due 2022; the Indenture and Supplemental Indenture No. 1 dated September 24, 2012, which governs the 3.625% Notes due 2022; the Indenture dated April 1, 2014, which governs the 4.750% Notes due 2023; the Indenture dated January 18, 2013, which governs the 4.250% Notes due 2025; and the Global Senior Credit Agreement dated as of August 15, 2013, as amended, which are filed as exhibits to our reports filed with the Securities and Exchange Commission. Does not include our 3.400% Notes due 2020 and 4.750% Notes due 2025 issued on October 1, 2015, which each contain substantially the same covenants as our other outstanding notes.
(2)
This ratio is referred to as the Leverage Ratio, defined as Consolidated Debt / Total Asset Value, under the Global Unsecured Revolving Credit Facility. Under the 5.875% Notes due 2020 and 5.25% Notes due 2021, Total Assets is calculated using Consolidated EBITDA capped at 9.0%. Under the 3.950% Notes due 2022, 3.625% Notes due 2022, 4.750% Notes due 2023, and 4.250% Notes due 2025, Total Assets is calculated using Consolidated EBITDA capped at 8.25%. Under the Global Unsecured Revolving Credit Facility, Total Asset Value is calculated using Adjusted Net Operating Income capped at 8.00% 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 Secured Debt / Total Asset Value, under the Global Unsecured 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 Unsecured Revolving Credit Facility.

19

Same-Capital Operating Trend Summary
                    
Financial Supplement
Unaudited and in thousands
Third Quarter 2015


Stabilized ("Same-Capital") Portfolio (1) 
 
 
Three Months Ended
Nine Months Ended
 
 
30-Sep-15
30-Sep-14
% Change
30-Jun-15
% Change
30-Sep-15
30-Sep-14
% Change
Rental revenues
 
$195,624
$197,819
(1.1
%)
$196,637
(0.5
%)
$586,241
$592,295
(1.0
%)
Tenant reimbursements - Utilities
 
39,604
39,190
1.1
%
36,893
7.3
%
111,706
115,194
(3.0
%)
Tenant reimbursements - Other
 
16,806
17,791
(5.5
%)
16,618
1.1
%
50,497
51,288
(1.5
%)
Total Revenue
 
$252,034
$254,800
(1.1
%)
$250,148
0.8
%
$748,444
$758,777
(1.4
%)
 
 
 
 
 
 
 
 
 
 
Utilities
 
$41,622
$40,960
1.6
%
$37,896
9.8
%
$115,811
$120,069
(3.5
%)
Rental property operating
 
22,044
18,745
17.6
%
21,489
2.6
%
63,946
58,490
9.3
%
Repairs & maintenance
 
15,632
16,001
(2.3
%)
14,682
6.5
%
44,208
45,846
(3.6
%)
Property taxes
 
10,712
15,611
(31.4
%)
12,399
(13.6
%)
37,789
43,361
(12.9
%)
Insurance
 
1,434
1,453
(1.3
%)
1,464
(2.0
%)
4,328
4,366
(0.9
%)
Total Expenses
 
$91,444
$92,770
(1.4
%)
$87,930
4.0
%
$266,082
$272,132
(2.2
%)
 
 
 
 
 
 
 
 
 
 
Net Operating Income (2)
 
$160,590
$162,030
(0.9
%)
$162,218
(1.0
%)
$482,362
$486,645
(0.9
%)
Less:
 
 
 
 
 
 
 
 
 
Stabilized straight-line rent
 
$1,317
$5,982
(78.0
%)
$2,903
(54.6
%)
$8,197
$20,338
(59.7
%)
Above and below market rent
 
3,182
3,385
(6.0
%)
3,360
(5.3
%)
9,860
10,697
(7.8
%)
Cash Net Operating Income (3)
 
$156,091
$152,663
2.2
%
$155,955
0.1
%
$464,305
$455,610
1.9
%
 
 
 
 
 
 
 
 
 
 
Stabilized Portfolio occupancy at period end (4)
 
93.9
%
95.2
%
(1.3
%)
94.8
%
(0.9
%)
93.9
%
95.2
%
(1.3
%)

(1)
Represents properties owned as of December 31, 2013 with less than 5% of total rentable square feet under development. Excludes properties that were undergoing, or were expected to undergo, development activities in 2014-2015, properties classified as held for sale, and properties sold or contributed to joint ventures for all periods presented. Prior period numbers adjusted to reflect current same-capital pool.
(2)
For a definition and discussion of net operating income and a reconciliation of operating income to NOI, see pages 46-47.
(3)
For a definition and discussion of cash net operating income and a reconciliation of operating income to Cash NOI, see pages 46-47.
(4)
Occupancy excludes space under active development and 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: Unconsolidated joint ventures, assets held for sale, and properties sold are excluded from stabilized portfolio in all periods.

20

Summary of Leasing Activity
Financial Supplement
Leases Signed in the Quarter Ended September 30, 2015
Third Quarter 2015


 
Turn-Key Flex®
 
Powered Base Building®
 
Colocation
 
Custom Solutions
 
Non-Tech
 
Total
Leasing Activity - New (1) (2)
3Q15
LTM
 
3Q15
LTM
 
3Q15
LTM
 
3Q15
LTM
 
3Q15
LTM
 
3Q15
LTM
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of leases (3)
12

62

 
1

3
 
30

139

 
 
7

 
8

27

 
51

238

  Rentable Square Feet Leased (4)
159,208

644,669

 



 
11,784

65,741

 

104,514

 
8,533

251,386

 
179,525

1,066,310

Initial stabilized cash rent per square foot

$172


$150

 
 

 

$238


$228

 


$135

 

$26


$14

 

$170


$121

GAAP base rent per square foot (5)

$186


$158

 
 

 

$239


$231

 


$134

 

$27


$17

 

$182


$127

Leasing cost per square foot

$57


$42

 
 

 

$57


$65

 


$35

 

$8


$27

 

$54


$39

  Weighted Average Lease Term (years)
6.2

6.1

 



 
3.8

4.1

 

5.5

 
6.6

9.3

 
6.1

6.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Effective Leasing Economics (6)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Base Rent

$187


$161

 



 

$243


$235

 


$141

 

$28


$18

 

$183


$130

Rental Concessions

$1


$3

 



 

$3


$4

 


$8

 

$1


$1

 

$2


$3

Estimated Opex

$25


$30

 



 

$46


$40

 


$31

 

$12


$3

 

$26


$24

  Net Rent

$161


$129

 



 

$194


$191

 


$103

 

$16


$14

 

$156


$103

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tenant Improvements

$4


$2

 



 

$3


$3

 

—

 
—


$1

 

$4


$2

Leasing Commissions

$3


$5

 



 

$14


$14

 


$7

 

$1


$2

 

$4


$5

  Net Effective Rent

$154


$122

 



 

$176


$173

 


$96

 

$14


$11

 

$148


$97

 
Turn-Key Flex®
 
Powered Base
Building®
 
Colocation
 
Custom Solutions
Non-Tech
Total
Leasing Activity - Renewals (1)
3Q15
LTM
 
3Q15
LTM
 
3Q15
LTM
 
3Q15
LTM
 
3Q15
LTM
 
3Q15
LTM
Number of leases (3)
10

23

 
4

18

 
17

68

 
N/A
N/A
 
8

45

 
39

154

Rentable Square Feet Renewed (4)
84,763

274,064

 
181,927

654,739

 
15,141

57,987

 
N/A
N/A
 
26,022

437,417

 
307,853

1,424,207

Expiring cash rent per square foot
$149
$135
 
$23
$31
 
$201
$197
 
N/A
N/A
 
$19
$19
 
$66
$54
Renewed cash rent per square foot
$153
$132
 
$24
$33
 
$205
$213
 
N/A
N/A
 
$20
$20
 
$68
$55
Cash Rental Rate Change
3.2
%
(2.4
%)
 
5.4
%
7.5
%
 
2.1
%
8.3
%
 
N/A
N/A
 
6.1
%
0.6
%
 
3.6
%
2.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expiring GAAP base rent per square foot (5)
$143
$130
 
$21
$28
 
$190
$189
 
N/A
N/A
 
$18
$18
 
$63
$51
Renewed GAAP base rent per square foot (5)
$154
$135
 
$25
$35
 
$207
$216
 
N/A
N/A
 
$22
$20
 
$69
$57
GAAP Base Rental Rate Change
7.7
%
4.3
%
 
22.2
%
25.1
%
 
9.1
%
14.4
%
 
N/A
N/A
 
21.2
%
9.4
%
 
11.1
%
11.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leasing cost per square foot
$3
$5
 
$1
$4
 
$8
$5
 
N/A
N/A
 
—

$10
 
$2
$6
  Weighted Average Lease Term (years)
3.1

3.5

 
5.1

6.1

 
1.7

1.9

 
N/A
N/A
 
8.7

8.4

 
4.7

6.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retention Ratio (7)
69
%
72
%
 
50
%
76
%
 
87
%
75
%
 
N/A
N/A
 
50
%
74
%
 
55
%
75
%

(1)
Excludes short-term, roof and garage leases.
(2)
Includes leases for new and re-leased space.
(3)
The number of leases represents the leased-unit count; a lease may include multiple units.
(4)
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.
(5)
Rental rates represent annual estimated cash rent per rentable square foot, adjusted for straight-line rents in accordance with GAAP.
(6)
All dollar amounts are per square foot average over lease term.
(7)
Based on square feet.
Note: LTM is last twelve months, including current quarter.

21

Summary of Leasing Activity
Financial Supplement
Leases Commenced in the Quarter Ended September 30, 2015
Third Quarter 2015


 
Turn-Key Flex®
 
Powered Base
Building®
 
Colocation
 
Custom Solutions
 
Non-Tech
 
Total
Leasing Activity - New (1) (2)
3Q15
LTM
 
3Q15
LTM
 
3Q15
LTM
 
3Q15
LTM
 
3Q15
LTM
 
3Q15
LTM
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of leases (3)
18

73

 
2

5

 
32

145

 
 
12

 
7

29

 
59

264

  Rentable Square Feet Leased (4)
198,974

763,262

 
45,122

205,122

 
11,642

71,620

 

197,518

 
7,169

263,752

 
262,907

1,501,274

Initial stabilized cash rent per square foot

$143


$143

 

$48


$59

 

$278


$224

 


$144

 

$26


$17

 

$130


$113

GAAP base rent per square foot (5)

$154


$151

 

$51


$70

 

$283


$227

 


$147

 

$27


$19

 

$138


$120

Leasing cost per square foot

$42


$37

 
—

—

 

$59


$59

 


$27

 

$19


$29

 

$35


$30

  Weighted Average Lease Term (years)
6.1

6.3

 
3.3

12.4

 
3.8

4.2

 

11.2

 
6.4

9.7

 
5.5

8.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Effective Leasing Economics (6)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Base Rent

$156


$153

 

$51


$70

 

$288


$232

 


$158

 

$28


$19

 

$140


$123

Rental Concessions

$2


$2

 
—

—

 

$5


$5

 


$10

 

$1


$1

 

$2


$3

Estimated Opex

$31


$35

 
—

—

 

$38


$39

 


$20

 

$10


$4

 

$25


$23

  Net Rent

$123


$116

 

$51


$70

 

$245


$187

 


$128

 

$17


$15

 

$113


$97

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tenant Improvements

$1


$1

 
—

—

 

$5


$3

 

—

 

$2


$1

 

$1


$1

Leasing Commissions

$5


$5

 
—

—

 

$14


$12

 


$5

 

$1


$2

 

$5


$4

  Net Effective Rent

$116


$110

 

$51


$70

 

$226


$172

 


$123

 

$13


$12

 

$107


$92


 
Turn-Key Flex®
 
Powered Base
Building®
 
Colocation
 
Custom Solutions
 
Non-Tech
 
Total
Leasing Activity - Renewals (1)
3Q15
LTM
 
3Q15
LTM
 
3Q15
LTM
 
3Q15
LTM
 
3Q15
LTM
 
3Q15
LTM
Number of leases (3)
8

27

 
4

16

 
17

67

 
N/A
N/A
 
7

49

 
36

159

  Rentable Square Feet Renewed (4)
70,385

354,183

 
181,927

561,684

 
11,451

62,117

 
N/A
N/A
 
25,822

444,648

 
289,585

1,422,632

Expiring cash rent per square foot
$145
$139
 
$23
$30
 
$236
$202
 
N/A
N/A
 
$18
$20
 
$61
$62
Renewed cash rent per square foot
$148
$135
 
$24
$32
 
$244
$209
 
N/A
N/A
 
$19
$20
 
$63
$62
  Cash Rental Rate Change
2.1
%
(3.3
%)
 
5.4
%
8.3
%
 
3.5
%
3.4
%
 
N/A
N/A
 
6.2
%
0.6
%
 
3.2
%
0.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expiring GAAP base rent per square foot (5)
$141
$132
 
$21
$27
 
$224
$192
 
N/A
N/A
 
$18
$18
 
$58
$58
Renewed GAAP base rent per square foot (5)
$149
$139
 
$25
$35
 
$248
$213
 
N/A
N/A
 
$21
$20
 
$64
$64
  GAAP Base Rental Rate Change
5.7
%
5.9
%
 
22.2
%
28.5
%
 
10.4
%
10.7
%
 
N/A
N/A
 
20.7
%
9.5
%
 
10.5
%
11.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leasing cost per square feet
$2
$7
 
$1
$4
 
$11
$5
 
N/A
N/A
 
—

$10
 
$2
$7
  Weighted Average Lease Term (years)
3.5

4.4

 
5.1

6.3

 
2.0

2.3

 
N/A
N/A
 
8.7

8.4

 
4.9

6.3


(1)
Excludes short-term, roof and garage leases.
(2)
Includes leases for new and re-leased space.
(3)
The number of leases represents the leased-unit count; a lease may include multiple units.
(4)
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.
(5)
Rental rates represent annual estimated cash rent per rentable square foot, adjusted for straight-line rents in accordance with GAAP.
(6)
All dollar amounts are per square foot average over lease term.
Note: LTM is last twelve months, including current quarter.


22


Lease Expirations and Lease Distribution
Financial Supplement
Dollars in thousands, except per square foot
Third Quarter 2015


    
Lease Expirations
Year
 
Square Footage
of Expiring
Leases (1)
 
% of Net
Rentable
Square Feet
 
Annualized
Rent (2)
 
% of
Annualized
Rent
 
Annualized
Rent Per
Occupied
Square Foot
 
Annualized
Rent Per
Occupied
Square Foot
at Expiration
 
Annualized
Rent at
Expiration
Available
 
1,507,752

 
7.4
%
 
 
 
—

 
 
 
 
 
 
Month to Month (3)
 
105,226

 
0.5
%
 

$7,858

 
0.6
%
 

$75

 

$76

 

$8,014

2015
 
480,386

 
2.4
%
 
26,446

 
2.0
%
 
55

 
55

 
26,446

2016
 
1,019,112

 
5.0
%
 
81,309

 
6.2
%
 
80

 
81

 
82,439

2017
 
1,516,388

 
7.4
%
 
102,776

 
7.8
%
 
68

 
70

 
106,137

2018
 
1,577,362

 
7.7
%
 
137,799

 
10.5
%
 
87

 
92

 
145,540

2019
 
2,475,051

 
12.2
%
 
199,651

 
15.2
%
 
81

 
89

 
220,641

2020
 
1,835,602

 
9.0
%
 
160,799

 
12.3
%
 
88

 
99

 
181,886

2021
 
1,692,216

 
8.3
%
 
99,388

 
7.6
%
 
59

 
67

 
113,543

2022
 
1,521,532

 
7.5
%
 
84,392

 
6.4
%
 
55

 
65

 
98,956

2023
 
901,018

 
4.4
%
 
62,836

 
4.8
%
 
70

 
84

 
76,048

2024
 
1,190,130

 
5.8
%
 
95,926

 
7.3
%
 
81

 
100

 
119,315

Thereafter
 
4,536,736

 
22.3
%
 
251,222

 
19.2
%
 
55

 
75

 
341,767

Total / Wtd. Avg.
 
20,358,510

 
100.0
%
 

$1,310,402

 
100.0
%
 

$70

 

$81

 

$1,520,731


Lease Distribution
Square Feet Under Lease
 
Total Net Rentable
Square Feet (1)
 
% of
Net Rentable
Square Feet
 
Annualized
Rent (2)
 
% of
Annualized
Rent
Available
 
1,507,752

 
7.4
%
 
—

 
—

2,500 or less
 
792,226

 
3.9
%
 
86,279

 
6.6
%
2,501 - 10,000
 
2,338,303

 
11.5
%
 
248,878

 
19.0
%
10,001 - 20,000
 
3,861,408

 
19.0
%
 
423,722

 
32.3
%
20,001 - 40,000
 
3,130,735

 
15.4
%
 
249,559

 
19.0
%
40,001 - 100,000
 
4,252,967

 
20.9
%
 
182,151

 
13.9
%
Greater than 100,000
 
4,475,119

 
21.9
%
 
119,814

 
9.2
%
Total / Wtd. Avg.
 
20,358,510

 
100.0
%
 

$1,310,402

 
100.0
%

(1)
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.
(2)
Annualized rent represents the monthly contractual base rent (defined as cash base rent before abatements) under existing leases as of September 30, 2015 multiplied by 12.
(3)
Includes leases, licenses and similar agreements that upon expiration have been automatically renewed on a month-to-month basis.
Note: Represents consolidated portfolio in addition to our managed portfolio of unconsolidated joint ventures based on our ownership percentage.

23

Lease Expirations - By Product Type
Financial Supplement
Dollars in thousands, except per square foot
Third Quarter 2015


 
 
 
 
 
 
 
 
 
Year
 
Square Footage of Expiring Leases (1)
 
Annualized Rent (2)
 
% of Annualized Rent
 
Annualized Rent Per Occupied
Square Foot
 
Annualized Rent Per Occupied Square Foot at Expiration
 
Annualized Rent at Expiration
Turn-Key Flex®
 
 
 
 
 
 
 
 
 
 
 
 
Available
 
343,106

 
—

 
—

 
 
 
 
 
 
Month to Month (3)
 
49,129

 

$5,666

 
0.4
%
 

$115

 

$115

 

$5,667

2015
 
72,909

 
11,181

 
0.9
%
 
153

 
153

 
11,181

2016
 
301,915

 
45,694

 
3.5
%
 
151

 
154

 
46,501

2017
 
453,448

 
69,619

 
5.3
%
 
154

 
159

 
72,174

2018
 
663,895

 
93,008

 
7.1
%
 
140

 
148

 
98,487

2019
 
801,353

 
133,040

 
10.2
%
 
166

 
185

 
148,463

2020
 
909,927

 
123,613

 
9.4
%
 
136

 
154

 
140,060

2021
 
454,624

 
73,346

 
5.6
%
 
161

 
186

 
84,541

2022
 
370,063

 
50,713

 
3.9
%
 
137

 
161

 
59,559

2023
 
365,123

 
49,658

 
3.8
%
 
136

 
170

 
61,900

2024
 
424,282

 
67,248

 
5.1
%
 
158

 
198

 
83,832

Thereafter
 
1,100,414

 
126,796

 
9.7
%
 
115

 
159

 
175,138

Total / Wtd. Avg.
 
6,310,189

 

$849,581

 
64.8
%
 

$142

 

$165

 

$987,503

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Powered Base Building®
 
 
 
 
 
 
 
 
 
 
 
 
Available
 
347,659

 
—

 
—

 
 
 
 
 
 
Month to Month (3)
 
44,484

 

$1,337

 
0.1
%
 

$30

 

$30

 

$1,337

2015
 
378,518

 
10,048

 
0.8
%
 
27

 
27

 
10,048

2016
 
516,079

 
15,453

 
1.2
%
 
30

 
30

 
15,588

2017
 
516,935

 
5,572

 
0.4
%
 
11

 
11

 
5,719

2018
 
723,241

 
25,524

 
1.9
%
 
35

 
37

 
26,607

2019
 
1,256,956

 
47,898

 
3.7
%
 
38

 
41

 
51,426

2020
 
525,192

 
19,207

 
1.5
%
 
37

 
41

 
21,547

2021
 
804,373

 
18,693

 
1.4
%
 
23

 
26

 
20,987

2022
 
879,358

 
25,522

 
1.9
%
 
29

 
34

 
29,747

2023
 
420,923

 
9,206

 
0.7
%
 
22

 
25

 
10,521

2024
 
521,890

 
22,158

 
1.7
%
 
42

 
54

 
27,996

Thereafter
 
2,433,533

 
108,111

 
8.3
%
 
44

 
60

 
146,197

Total / Wtd. Avg.
 
9,369,141

 

$308,731

 
23.6
%
 

$34

 

$41

 

$367,721

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Colocation
 
 
 
 
 
 
 
 
 
 
 
 
Available
 
185,718

 
—

 
—

 
 
 
 
 
 
Month to Month (3)
 
1,322

 

$611

 
—

 

$462

 

$580

 

$767

2015
 
22,682

 
4,782

 
0.4
%
 
211

 
211

 
4,782

2016
 
77,188

 
17,050

 
1.3
%
 
221

 
223

 
17,212

2017
 
81,181

 
16,121

 
1.2
%
 
199

 
206

 
16,688

2018
 
67,849

 
15,158

 
1.2
%
 
223

 
237

 
16,099

2019
 
97,069

 
13,578

 
1.0
%
 
140

 
156

 
15,181

2020
 
64,786

 
9,810

 
0.7
%
 
151

 
172

 
11,130

2021
 
10,507

 
1,346

 
0.1
%
 
128

 
137

 
1,440

2022
 
27,367

 
3,901

 
0.3
%
 
143

 
174

 
4,756

2023
 
14,342

 
1,655

 
0.1
%
 
115

 
127

 
1,825

2024
 
16,176

 
2,129

 
0.2
%
 
132

 
163

 
2,637

Thereafter
 
29,130

 
2,806

 
0.2
%
 
96

 
124

 
3,614

Total / Wtd. Avg.
 
695,317

 

$88,948

 
6.8
%
 

$175

 

$189

 

$96,132

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Technical
 
 
 
 
 
 
 
 
 
 
 
 
Available
 
631,269

 
—

 
—

 
 
 
 
 
 
Month to Month (3)
 
10,291

 

$243

 
—

 

$24

 

$24

 

$243

2015
 
6,277

 
435

 
—
%
 
69

 
69

 
435

2016
 
123,930

 
3,112

 
0.2
%
 
25

 
25

 
3,138

2017
 
464,824

 
11,464

 
0.9
%
 
25

 
25

 
11,556

2018
 
122,377

 
4,109

 
0.3
%
 
34

 
36

 
4,346

2019
 
319,673

 
5,135

 
0.4
%
 
16

 
17

 
5,571

2020
 
335,696

 
8,169

 
0.6
%
 
24

 
27

 
9,148

2021
 
422,712

 
6,002

 
0.5
%
 
14

 
16

 
6,574

2022
 
244,744

 
4,256

 
0.3
%
 
17

 
20

 
4,894

2023
 
100,630

 
2,316

 
0.2
%
 
23

 
18

 
1,802

2024
 
227,782

 
4,391

 
0.3
%
 
19

 
21

 
4,851

Thereafter
 
973,658

 
13,509

 
1.0
%
 
14

 
17

 
16,818

Total / Wtd. Avg.
 
3,983,864

 

$63,142

 
4.8
%
 

$19

 

$21

 

$69,376


(1)
For some 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.
(2)
Annualized rent represents the monthly contractual base rent (defined as cash base rent before abatements) under existing leases as of September 30, 2015 multiplied by 12.
(3)
Includes leases, licenses and similar agreements that upon expiration have been automatically renewed on a month-to-month basis.
Note:
Represents consolidated portfolio in addition to our managed portfolio of unconsolidated joint ventures based on our ownership percentage.

24

Top 20 Tenants by Annualized Rent
Financial Supplement
Dollars in thousands
Third Quarter 2015


Tenant
 
Number of Locations
 
Total Occupied Square Feet (1)
 
% of Net Rentable Square Feet
 
Annualized Rent (2)
 
% of Annualized Rent
 
Weighted Average Remaining Lease Term in Months
1
IBM (3)
 
21

 
820,599

 
4.0
%
 

$103,657

 
7.9
%
 
75

2
CenturyLink, Inc. (4)
 
42

 
2,313,701

 
11.4
%
 
87,424

 
6.7
%
 
72

3
Equinix Operating Company, Inc.
 
11

 
1,056,353

 
5.2
%
 
53,864

 
4.1
%
 
143

4
TelX Group, Inc. (5)
 
12

 
341,362

 
1.7
%
 
52,109

 
4.0
%
 
150

5
Facebook, Inc.
 
4

 
182,293

 
0.9
%
 
30,142

 
2.3
%
 
40

6
Oracle America, Inc.
 
8

 
232,671

 
1.1
%
 
28,238

 
2.2
%
 
49

7
AT & T
 
24

 
618,495

 
3.0
%
 
27,297

 
2.1
%
 
72

8
LinkedIn Corporation
 
3

 
260,886

 
1.3
%
 
27,034

 
2.1
%
 
111

9
JPMorgan Chase & Co.
 
7

 
238,104

 
1.2
%
 
24,441

 
1.9
%
 
63

10
SunGard Availability Services LP
 
8

 
300,119

 
1.5
%
 
23,345

 
1.8
%
 
90

11
Deutsche Bank AG
 
3

 
113,461

 
0.6
%
 
21,743

 
1.7
%
 
34

12
Morgan Stanley
 
4

 
156,534

 
0.8
%
 
20,748

 
1.6
%
 
84

13
Rackspace US, Inc.
 
4

 
171,501

 
0.8
%
 
20,083

 
1.5
%
 
156

14
NTT Communications Company
 
7

 
225,905

 
1.1
%
 
19,925

 
1.5
%
 
73

15
TATA Communications (UK)
 
9

 
166,761

 
0.8
%
 
18,467

 
1.4
%
 
76

16
Navisite Europe Limited
 
4

 
119,995

 
0.6
%
 
17,519

 
1.3
%
 
103

17
Verizon Communications, Inc.
 
37

 
244,640

 
1.2
%
 
16,340

 
1.2
%
 
88

18
eBay Inc.
 
1

 
102,045

 
0.5
%
 
14,913

 
1.1
%
 
36

19
Amazon
 
9

 
301,234

 
1.5
%
 
13,335

 
1.0
%
 
56

20
Nomura International PLC
 
2

 
63,137

 
0.3
%
 
12,696

 
1.0
%
 
52

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Total / Weighted Average
 
8,029,796

 
39.4
%
 

$633,321

 
48.3
%
 
87


Note: Represents consolidated portfolio in addition to our managed portfolio of unconsolidated joint ventures based on ownership percentage.
(1)
Occupied square footage is calculated based on leases that commenced on or before September 30, 2015. 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 September 30, 2015 multiplied by 12.
(3)
Represents leases with IBM and leases with SoftLayer. IBM acquired SoftLayer in July 2013.
(4)
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.
(5)
We completed our acquisition of Telx Holdings, Inc. (the parent company of TelX Group, Inc.) on October 9, 2015.


25

Portfolio Summary
Financial Supplement
As of September 30, 2015
Third Quarter 2015


 
As of
 
30-Sep-2015
 
30-Jun-2015
 
31-Mar-2015
 
31-Dec-2014
 
30-Sep-2014
Number of Properties (1)
 
 
 
 
 
 
 
 
 
Domestic (2)
88

 
88

 
89

 
90

 
90

International
30

 
30

 
27

 
27

 
27

Unconsolidated joint ventures (1)
14

 
14

 
14

 
14

 
14

Total
132

 
132

 
130

 
131

 
131

 
 
 
 
 
 
 
 
 
 
Number of Buildings
 
 
 
 
 
 
 
 
 
Domestic
140

 
139

 
140

 
141

 
140

International
35

 
35

 
31

 
31

 
31

Unconsolidated joint ventures
16

 
16

 
16

 
16

 
16

Total
191

 
190

 
187

 
188

 
187

 
 
 
 
 
 
 
 
 
 
Number of Metropolitan Areas
 
 
 
 
 
 
 
 
 
Domestic
19

 
19

 
20

 
20

 
20

International
11

 
11

 
11

 
11

 
11

Unconsolidated joint ventures
2

 
2

 
2

 
2

 
2

Total
32

 
32

 
33

 
33

 
33

 
 
 
 
 
 
 
 
 
 
Net Rentable Square Feet (3)
 
 
 
 
 
 
 
 
 
Domestic
16,945,581

 
16,823,303

 
17,221,342

 
17,384,109

 
17,285,433

International
3,095,548

 
3,063,244

 
3,005,619

 
2,902,497

 
2,844,972

Unconsolidated joint ventures
1,866,784

 
1,866,784

 
1,888,668

 
1,859,779

 
1,833,922

Total
21,907,913

 
21,753,331

 
22,115,629

 
22,146,385

 
21,964,327

 
 
 
 
 
 
 
 
 
 
Active Development Square Feet (4)
 
 
 
 
 
 
 
 
 
Domestic
1,047,416

 
828,884

 
1,066,850

 
1,073,404

 
1,017,790

International
337,899

 
322,415

 
156,388

 
231,449

 
235,902

Total
1,385,315

 
1,151,299

 
1,223,238

 
1,304,853

 
1,253,692

 
 
 
 
 
 
 
 
 
 
Space Held for Development (5)
 
 
 
 
 
 
 
 
 
Domestic
1,095,565

 
994,059

 
1,063,115

 
920,462

 
936,302

International
157,743

 
205,532

 
252,184

 
254,495

 
311,384

Unconsolidated joint ventures
71,974

 
71,974

 
—

 
—

 
—

Total
1,325,282

 
1,271,565

 
1,315,299

 
1,174,957

 
1,247,686

 
 
 
 
 
 
 
 
 
 
Portfolio occupancy (6)
93.0
%
 
93.5
%
 
92.1
%
 
93.2
%
 
93.0
%
Digital Realty's share occupancy (7)
92.6
%
 
93.2
%
 
91.7
%
 
92.8
%
 
92.6
%
Stabilized "same-capital" pool occupancy (8)
93.9
%
 
94.8
%
 
94.7
%
 
95.1
%
 
95.2
%

(1)
Includes 12 properties held in our managed portfolio of unconsolidated joint ventures consisting of 4650 Old Ironsides Drive, Santa Clara, CA, 2950 Zanker Road, San Jose, CA, 4700 Old Ironsides Drive, Santa Clara, CA, 444 Toyama Drive, Sunnyvale, CA, 43915 Devin Shafron Drive (Bldg A), Ashburn, VA, 43790 Devin Shafron Drive (Bldg E), Ashburn, VA, 21551 Beaumeade Circle, Ashburn, VA, 7505 Mason King Court, Manassas, VA, 14901 FAA Boulevard, Fort Worth, TX, 900 Dorothy Drive, Richardson, TX, 33 Chun Choi Street, Hong Kong and 636 Pierce Street, Somerset, NJ; and two properties held in our unconsolidated non-managed joint ventures consisting of 2001 Sixth Avenue, Seattle, WA and 2020 Fifth Avenue, Seattle, WA.
(2)
43915 Devin Shafron Drive (Bldg A) is included in the property count for all periods presented because it was separately contributed to our managed unconsolidated joint venture. Not previously included in our property count.
(3)
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 areas.
(4)
Space under active development includes current Base Building and Data Centers projects in progress. See page 34.
(5)
Space held for development includes space held for future Data Center development, and excludes space under active development. See page 38.
(6)
Represents consolidated portfolio in addition to our managed portfolio of unconsolidated joint ventures and non-managed unconsolidated joint ventures. Occupancy excludes space under active development and 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 areas.
(7)
Represents consolidated portfolio in addition to our managed portfolio of unconsolidated joint ventures based on our ownership percentage. Occupancy excludes space under active development and 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 areas.
(8)
Represents consolidated portfolio of properties owned as of December 31, 2013 with less than 5% of total rentable square feet under development. Excludes properties that were undergoing, or were expected to undergo, development activities in 2014-2015 and properties sold or contributed to joint venture. Occupancy excludes space under active development and 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 areas.

26

Portfolio Overview by Product Type
Financial Supplement
Dollars in thousands
Third Quarter 2015


Property
 
Annualized Rent (1)
% of Annualized Rent
% of Property Type Total
 
 
 
 
 
Corporate Data Center
 
 
 
 
Turn-Key Flex®
 

$720,909

55.0
%
71.3
%
Powered Base Building®
 
199,992

15.3
%
19.8
%
Colocation
 
51,202

3.9
%
5.1
%
Non-technical
 
38,555

2.9
%
3.8
%
Data Center Total
 

$1,010,658

77.1
%
100.0
%
 
 
 
 
 
Internet Gateway Data Center
 
 
 
 
Turn-Key Flex®
 

$128,672

9.8
%
44.9
%
Powered Base Building®
 
108,739

8.3
%
37.9
%
Colocation
 
37,746

2.9
%
13.2
%
Non-technical
 
11,503

0.9
%
4.0
%
Internet Gateway Data Center Total
 

$286,660

21.9
%
100.0
%
 
 
 
 
 
Non-Data Center
 
 
 
 
Non-technical
 

$13,084

1.0
%
100.0
%
Non-Data Center Total
 

$13,084

1.0
%
100.0
%
 
 
 
 
 
Total
 

$1,310,402

100.0
%
 

Note: Represents consolidated portfolio in addition to our managed portfolio of unconsolidated joint ventures based on our ownership percentage.
(1)
Annualized rent represents the monthly contractual base rent (defined as cash base rent before abatements) under existing leases as of September 30, 2015, multiplied by 12.


27


Turn-Key Flex® & Colocation
Financial Supplement
Product Overview by Metropolitan Area (1)
Third Quarter 2015


Metropolitan Area
 
IT Load MW Capacity (2)
Net Rentable
Square Feet (3)
Occupancy % (4)
Leased Square Feet
 
 
 
 
 
 
Northern Virginia
 
70.4

995,287

97.8
%
973,707

Dallas
 
49.5

769,765

95.3
%
733,763

Phoenix
 
45.3

673,853

85.1
%
573,611

Silicon Valley
 
41.1

476,151

98.0
%
466,482

Chicago
 
32.6

494,680

94.5
%
467,231

New York
 
29.0

555,552

96.1
%
534,048

San Francisco
 
23.6

398,192

79.0
%
314,373

Boston
 
21.1

395,450

94.6
%
374,066

Los Angeles
 
13.3

238,220

91.0
%
216,725

Houston
 
12.6

155,060

86.0
%
133,323

Other Metropolitan Areas
 
21.5

305,810

70.3
%
215,072

Total North America
 
360.1

5,458,020

91.7
%
5,002,401

 
 
 
 
 
 
London, United Kingdom
 
70.2

869,163

97.5
%
847,539

Other Metropolitan Areas
 
12.2

203,034

94.6
%
192,081

Total Europe
 
82.5

1,072,197

97.0
%
1,039,620

 
 
 
 
 
 
Singapore
 
21.1

255,502

94.7
%
241,993

Other Metropolitan Areas
 
14.9

219,787

87.7
%
192,668

Total Asia/Pacific
 
35.9

475,289

91.5
%
434,661

 
 
 
 
 
 
Total
 
478.5

7,005,506

92.5
%
6,476,682


Note: Represents consolidated portfolio in addition to our managed portfolio of unconsolidated joint ventures based on our ownership percentage.
(1)
Excludes any power associated with Powered Base Building® and Non-Technical product types.
(2)
IT Load MW Capacity represents UPS-backed utility power dedicated to Digital Realty's operated data center space.
(3)
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.
(4)
Occupancy excludes space under active development and 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.


28

Occupancy Analysis
Financial Supplement
Dollars in thousands
Third Quarter 2015


 
 
 
 
 
 
Occupancy (5)
 
Property
Property Type
Net Rentable
Square Feet (1)
Space Under
Active Development (2)
Space Held for
Development (3)
Annualized
Rent (4)
30-Sep-15
30-Jun-15
TKF & Colo IT Load (6)
 
 
 
 
 
 
 
 
 
North America
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Northern Virginia
 
 
 
 
 
 
 
 
43940 Digital Loudoun Plaza (Bldg G)
Data Center
337,009

—

55,702


$34,596

100.0
%
100.0
%
22.1

44060 Digital Loudoun Plaza (Bldg K)
Data Center
200,113

84,350

—

22,994

94.7
%
97.4
%
14.4

43881 Devin Shafron Drive (Bldg B)
Data Center
180,000

—

—

18,333

100.0
%
99.0
%
9.0

43830 Devin Shafron Drive (Bldg F)
Data Center
101,300

—

11,950

12,742

100.0
%
100.0
%
6.8

43791 Devin Shafron Drive (Bldg D)
Data Center
135,000

—

—

11,582

94.7
%
95.8
%
6.9

4050 Lafayette Center Drive
Data Center
42,374

—

—

7,272

99.0
%
99.0
%
3.4

4030 Lafayette Center Drive
Data Center
72,696

—

—

5,568

100.0
%
100.0
%
2.4

45901 & 45845 Nokes Boulevard
Data Center
167,160

—

—

5,040

100.0
%
100.0
%
—

44470 Chilum Place
Data Center
95,440

—

—

4,643

100.0
%
100.0
%
—

4040 Lafayette Center Drive
Data Center
30,339

—

—

3,924

100.0
%
100.0
%
2.4

21110 Ridgetop Circle
Data Center
135,513

—

—

3,176

100.0
%
100.0
%
—

21561 & 21571 Beaumeade Circle
Data Center
164,453

—

—

3,109

100.0
%
100.0
%
—

1506 & 44874 Moran Rd
Data Center
78,295

—

—

2,441

100.0
%
100.0
%
—

1807 Michael Faraday Court
Data Center
19,237

—

—

1,879

100.0
%
100.0
%
0.9

251 Exchange Place
Data Center
70,982

—

—

1,792

100.0
%
100.0
%
—

43831 Devin Shafron Drive (Bldg C)
Data Center
117,071

—

—

1,645

100.0
%
100.0
%
—

8100 Boone Boulevard (7)
Data Center
17,015

—

—

725

34.1
%
34.1
%
0.4

44100 Digital Loudoun Plaza (Bldg J)
Data Center
—

216,000

—

—

—

—

—

Total
 
1,963,997

300,350

67,652


$141,463

98.5
%
98.8
%
68.7

 
 
 
 
 
 
 
 
 
Dallas















2323 Bryan Street
Internet Gateway
453,539

—

23,568


$17,808

76.7
%
76.2
%
2.7

1232 Alma Road
Data Center
105,726

—

—

14,421

100.0
%
100.0
%
6.8

2501 S. State Hwy. 121
Data Center
831,372

—

—

13,183

96.5
%
98.5
%
—

2440 Marsh Lane
Data Center
135,250

—

—

12,733

80.6
%
80.2
%
6.8

4849 Alpha Road
Data Center
125,538

—

—

11,962

100.0
%
100.0
%
4.5

900 Quality Way
Data Center
91,488

21,810

1,624

10,930

100.0
%
100.0
%
5.8

4025 Midway Road
Data Center
92,386

—

8,204

10,683

98.3
%
98.3
%
4.4

850 East Collins
Data Center
121,366

—

—

9,478

87.3
%
87.3
%
6.9

950 East Collins
Data Center
121,286

—

—

9,430

100.0
%
100.0
%
7.2

400 S. Akard
Internet Gateway
269,563

—

—

8,629

94.9
%
94.9
%
—

11830 Webb Chapel Road
Data Center
365,647

—

—

8,374

98.0
%
98.0
%
—

1215 Integrity Drive (8)
Data Center
61,750

56,126

—

4,078

96.8
%
96.8
%
3.4

907 Security Row (9)
Data Center
15,429

77,217

45,804

1,843

100.0
%
—

1.2

904 Quality Way
Data Center
46,750

—

—

979

100.0
%
100.0
%
—

17201 Waterview Parkway
Data Center
61,750

—

—

704

100.0
%
100.0
%
—

1210 Integrity Drive (10)
Data Center
—

442,316

—

—

—

—

—

Total
 
2,898,840

597,469

79,200


$135,236

93.1
%
93.5
%
49.7

 
 
 
 
 
 
 
 
 
Silicon Valley
 
 
 
 
 
 
 
 
2805 Lafayette Street (11)
Data Center
123,980

—

13,440


$15,557

92.7
%
73.7
%
9.3

1100 Space Park Drive
Internet Gateway
165,297

—

—

14,171

100.0
%
100.0
%
6.3

3011 Lafayette Street
Data Center
90,780

—

—

11,197

100.0
%
100.0
%
6.0

1350 Duane & 3080 Raymond
Data Center
185,000

—

—

10,890

100.0
%
100.0
%
—

1500 Space Park Drive
Data Center
51,615

—

—

10,189

100.0
%
100.0
%
4.9

3105 and 3205 Alfred Street
Data Center
49,858

—

—

9,858

98.8
%
98.8
%
4.5

1525 Comstock Street
Data Center
42,385

—

—

9,331

100.0
%
100.0
%
4.5

2045 & 2055 LaFayette Street
Data Center
300,000

—

—

7,560

100.0
%
100.0
%
—

150 South First Street
Data Center
179,761

—

—

7,489

97.2
%
94.7
%
—

1725 Comstock Street
Data Center
39,643

—

—

7,301

100.0
%
100.0
%
3.4

1201 Comstock Street
Data Center
24,000

—

—

5,023

100.0
%
100.0
%
2.3

2334 Lundy Place
Data Center
130,752

—

—

4,801

100.0
%
100.0
%
—

2401 Walsh Street
Data Center
167,932

—

—

4,068

100.0
%
100.0
%
—

2403 Walsh Street
Data Center
103,940

—

—

2,518

100.0
%
100.0
%
—

Total

1,654,943

—

13,440


$119,953

99.1
%
97.4
%
41.2

















New York















365 S Randolphville Road
Data Center
291,894

—

59,554


$30,802

99.3
%
98.9
%
10.8

111 Eighth Avenue (12)
Internet Gateway
116,843

—

—

25,230

99.0
%
99.0
%
3.2

3 Corporate Place
Data Center
276,931

—

—

20,029

100.0
%
100.0
%
3.3

60 & 80 Merritt Boulevard
Data Center
210,168

—

17,598

18,850

95.9
%
95.9
%
6.0

300 Boulevard East
Data Center
346,819

—

22,962

16,311

90.9
%
90.9
%
2.8

410 Commerce Boulevard (13)
Data Center
27,943

—

—

5,366

100.0
%
100.0
%
2.3

701 Union Boulevard
Data Center
—

—

—

30

—

—

—

650 Randolph Road
Data Center
—

—

127,790

—

—

—

—

3 Corporate Place Annex
Data Center
—

—

100,515

—

—

—

—

Total
 
1,270,598

—

328,419


$116,618

96.6
%
96.5
%
28.4

 
 
 
 
 
 
 
 
 

29

Occupancy Analysis
Financial Supplement
Dollars in thousands
Third Quarter 2015


 
 
 
 
 
 
Occupancy (5)
 
Property
Property Type
Net Rentable
Square Feet (1)
Space Under
Active Development (2)
Space Held for
Development (3)
Annualized
Rent (4)
30-Sep-15
30-Jun-15
TKF & Colo IT Load (6)
Chicago
 
 
 
 
 
 
 
 
350 E Cermak Road
Internet Gateway
1,133,739

—

—


$78,212

99.1
%
99.0
%
17.6

9355 Grand Avenue
Data Center
101,903

149,597

—

12,738

98.5
%
98.0
%
7.2

9333 Grand Avenue
Data Center
109,826

—

7,689

10,095

84.9
%
83.7
%
6.8

600-780 S. Federal
Internet Gateway
142,283

—

19,264

8,032

87.0
%
87.3
%
0.9

9377 Grand Avenue
Data Center
—

—

166,709

—

—

—

—

Total
 
1,487,751

149,597

193,662


$109,078

96.8
%
96.7
%
32.5

 
 
 
 
 
 
 
 
 
Phoenix
 
 
 
 
 
 
 
 
2121 South Price Road
Data Center
508,173

—

—


$57,492

82.3
%
82.2
%
32.6

120 E. Van Buren
Internet Gateway
287,514

—

—

21,959

84.2
%
84.0
%
9.6

2055 East Technology Circle
Data Center
76,350

—

—

8,075

89.7
%
89.7
%
3.2

1900 S. Price Road
Data Center
118,348

—

108,926

—

—

—

—

Total
 
990,385

—

108,926


$87,526

73.6
%
73.5
%
45.4

 
 
 
 
 
 
 
 
 
San Francisco
 
 
 
 
 
 
 
 
365 Main Street
Internet Gateway
226,981

—

—


$28,691

71.1
%
70.7
%
8.5

200 Paul Avenue
Internet Gateway
481,571

—

18,522

26,895

81.7
%
91.9
%
7.5

720 2nd Street
Data Center
121,220

—

—

14,971

84.6
%
91.7
%
7.6

360 Spear Street
Data Center
154,950

—

—

4,251

48.5
%
96.7
%
—

Total
 
984,722

—

18,522


$74,808

74.4
%
87.7
%
23.6

 
 
 
 
 
 
 
 
 
Boston
 
 
 
 
 
 
 
 
128 First Avenue
Data Center
274,750

—

—


$23,998

95.7
%
96.0
%
11.7

55 Middlesex Turnpike
Data Center
101,067

—

—

12,048

91.5
%
90.7
%
5.1

200 Quannapowitt Parkway
Data Center
144,569

—

66,526

5,978

85.9
%
85.9
%
2.1

105 Cabot Street
Data Center
42,243

—

63,488

4,554

75.8
%
73.4
%
2.3

115 Second Avenue
Data Center
66,730

—

—

4,104

100.0
%
100.0
%
—

600 Winter Street
Data Center
30,400

—

—

791

100.0
%
100.0
%
—

Total
 
659,759

—

130,014


$51,472

92.3
%
92.1
%
21.2

 
 
 
 
 
 
 
 
 
Los Angeles
 
 
 
 
 
 
 
 
600 West Seventh Street
Internet Gateway
489,722

—

—


$24,805

96.9
%
97.3
%
6.1

2260 East El Segundo Boulevard
Data Center
132,240

—

—

11,860

85.9
%
85.9
%
7.2

200 North Nash Street
Data Center
113,606

—

—

2,752

100.0
%
100.0
%
—

3015 Winona Avenue
Data Center
82,911

—

—

1,775

100.0
%
100.0
%
—

Total
 
818,479

—

—


$41,191

95.9
%
96.1
%
13.3

 
 
 
 
 
 
 
 
 
Houston
 
 
 
 
 
 
 
 
Digital Houston
Data Center
404,799

—

22,722


$17,805

88.1
%
88.1
%
12.6

Total

404,799

—

22,722


$17,805

88.1
%
88.1
%
12.6

 
 
 
 
 
 
 
 
 
Atlanta
 














375 Riverside Parkway
Data Center
250,191

—

—


$8,853

100.0
%
100.0
%
2.3

760 Doug Davis Drive
Data Center
334,306

—

—

6,645

99.9
%
99.9
%
—

101 Aquila Way
Data Center
313,581

—

—

1,486

100.0
%
100.0
%
—

Total
 
898,078

—

—


$16,985

100.0
%
100.0
%
2.3

 
 
 
 
 
 
 
 
 
St. Louis
 
 
 
 
 
 
 
 
210 N Tucker Boulevard
Data Center
258,269

—

77,778


$7,592

65.1
%
65.1
%
3.9

900 Walnut Street
Internet Gateway
105,776

—

6,490

5,212

94.6
%
96.3
%
—

Total
 
364,045

—

84,268


$12,804

73.6
%
74.1
%
3.9

 
 
 
 
 
 
 
 
 
Denver
 
 
 
 
 
 
 
 
11900 East Cornell Avenue
Data Center
285,840

—

—


$6,488

94.3
%
94.3
%
—

8534 Concord Center Drive
Data Center
85,660

—

—

4,015

100.0
%
100.0
%
—

Total
 
371,500

—

—


$10,503

95.6
%
95.6
%
—

 
 
 
 
 
 
 
 
 
Toronto, Canada
 
 
 
 
 
 
 
 
371 Gough Road
Data Center
56,917

26,456

14,403


$6,517

100.0
%
100.0
%
4.1

6800 Millcreek Drive
Data Center
83,758

—

—

2,189

100.0
%
100.0
%
—

Total
 
140,675

26,456

14,403


$8,705

100.0
%
100.0
%
4.1

 
 
 
 
 
 
 
 
 
Portland
 
 
 
 
 
 
 
 
3825 NW Aloclek Place
Data Center
48,574

—

—


$8,014

100.0
%
100.0
%
4.5

Total
 
48,574

—

—


$8,014

100.0
%
100.0
%
4.5

 
 
 
 
 
 
 
 
 
Austin
 
 
 
 
 
 
 
 
7500 Metro Center Drive
Data Center
60,345

—

25,343


$3,947

42.2
%
42.2
%
4.3

7401 E. Ben White Blvd Building 7 - 9
Data Center
203,235

—

—

1,920

100.0
%
100.0
%
—

8025 North Interstate 35
Data Center
62,237

—

—

1,058

100.0
%
100.0
%
—

7620 Metro Center Drive
Data Center
40,836

—

—

661

82.8
%
82.8
%
0.3

Total
 
366,653

—

25,343


$7,586

88.6
%
88.6
%
4.6

 
 
 
 
 
 
 
 
 

30

Occupancy Analysis
Financial Supplement
Dollars in thousands
Third Quarter 2015


 
 
 
 
 
 
Occupancy (5)
 
Property
Property Type
Net Rentable
Square Feet (1)
Space Under
Active Development (2)
Space Held for
Development (3)
Annualized
Rent (4)
30-Sep-15
30-Jun-15
TKF & Colo IT Load (6)
Sacramento
 
 
 
 
 
 
 
 
11085 Sun Center Drive
Data Center
69,048

—

—


$3,053

100.0
%
100.0
%
—

3065 Gold Camp Drive
Data Center
40,394

—

23,397

2,889

100.0
%
100.0
%
1.4

Total
 
109,442

—

23,397


$5,942

100.0
%
100.0
%
1.4

 
 
 
 
 
 
 
 
 
Minneapolis/St. Paul
 
 
 
 
 
 
 
 
1500 Towerview Road
Data Center
328,765

—

—


$5,202

100.0
%
100.0
%
—

1125 Energy Park Drive
Data Center
78,164

—

—

419

22.2
%
22.2
%
—

Total
 
406,929

—

—


$5,621

85.1
%
85.1
%
—

 
 
 
 
 
 
 
 
 
Miami
 
 
 
 
 
 
 
 
36 NE 2nd Street
Internet Gateway
162,140

—

—


$4,587

84.9
%
84.9
%
—

2300 NW 89th Place
Data Center
64,174

—

—

736

100.0
%
100.0
%
—

Total
 
226,314

—

—


$5,323

89.2
%
89.2
%
—

 
 
 
 
 
 
 
 
 
Charlotte
 
 
 
 
 
 
 
 
125 North Myers
Internet Gateway
25,402

—

—


$1,504

100.0
%
100.0
%
0.9

731 East Trade Street
Internet Gateway
40,879

—

—

1,433

100.0
%
100.0
%
—

113 North Myers
Internet Gateway
29,218

—

—

1,016

100.0
%
100.0
%
—

Total
 
95,499

—

—


$3,953

100.0
%
100.0
%
0.9

 
 
 
 
 
 
 
 
 
EUROPE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
London, United Kingdom
 
 
 
 
 
 
 
 
Unit 21 Goldsworth Park Trading Estate
Data Center
389,575

30,339

60,086


$58,728

100.0
%
100.0
%
26.9

Watford (14)
Data Center
133,000

—

—

21,018

97.3
%
97.3
%
11.2

3 St. Anne's Boulevard
Data Center
96,147

—

—

19,063

89.5
%
89.5
%
7.2

Croydon (15)
Data Center
120,000

—

—

16,076

100.0
%
100.0
%
7.9

Fountain Court
Data Center
84,075

—

47,696

11,800

80.2
%
68.7
%
6.7

Principal Park, Crawley
Data Center
66,247

65,902

—

9,437

100.0
%
100.0
%
6.0

Mundells Roundabout
Data Center
113,464

—

—

8,294

100.0
%
100.0
%
—

Cressex 1
Data Center
50,847

—

—

7,667

100.0
%
100.0
%
2.9

2 St. Anne's Boulevard
Data Center
30,612

—

—

5,104

100.0
%
100.0
%
1.4

1 St. Anne's Boulevard
Data Center
20,219

—

—

294

100.0
%
100.0
%
—

Total
 
1,104,186

96,241

107,782


$157,482

97.2
%
96.4
%
70.2

 
 
 
 
 
 
 
 
 
Paris, France
 
 
 
 
 
 
 
 
114 Rue Ambroise Croizat
Internet Gateway
360,920

—

—


$18,475

97.3
%
97.3
%
4.3

1 Rue Jean-Pierre
Data Center
104,666

—

—

4,133

100.0
%
100.0
%
—

127 Rue de Paris
Data Center
59,991

—

—

1,771

100.0
%
100.0
%
—

Liet-dit ie Christ de Saclay
Data Center
21,337

—

—

590

100.0
%
100.0
%
—

Total
 
546,914

—

—


$24,969

98.2
%
98.2
%
4.3

 
 
 
 
 
 
 
 
 
Dublin, Ireland
 
 
 
 
 
 
 
 
Unit 9 Blanchardstown Corporate Center
Data Center
120,000

—

—


$9,099

94.1
%
94.1
%
3.8

Clonshaugh Industrial Estate (Eircom)
Data Center
124,500

—

—

7,732

100.0
%
100.0
%
—

Profile Park
Data Center
21,594

19,597

2,084

2,706

91.4
%
91.2
%
1.9

Clonshaugh Industrial Estate IE
Data Center
20,000

—

—

1,408

100.0
%
100.0
%
—

Total
 
286,094

19,597

2,084


$20,945

96.9
%
96.9
%
5.7

 
 
 
 
 
 
 
 
 
Amsterdam, Netherlands
 
 
 
 
 
 
 
 
Paul van Vlissingenstraat 16
Data Center
112,472

—

—


$6,609

100.0
%
100.0
%
2.2

Cateringweg 5
Data Center
55,972

—

—

4,776

100.0
%
100.0
%
—

Naritaweg 52
Data Center
63,260

—

—

2,374

100.0
%
100.0
%
—

Liverpoolweg 10
Data Center
29,986

—

—

1,219

100.0
%
100.0
%
—

Gyroscoopweg 2E-2F
Data Center
55,585

—

—

1,130

100.0
%
100.0
%
—

De President Business Park
Technology Office
—

—

—

—

—

—

—

Total
 
317,275

—

—


$16,109

100.0
%
100.0
%
2.2

 
 
 
 
 
 
 
 
 
Manchester, United Kingdom
 
 
 
 
 
 
 
 
Manchester Technopark
Data Center
38,016

—

—


$1,932

100.0
%
100.0
%
—

Total
 
38,016

—

—


$1,932

100.0
%
100.0
%
—

 
 
 
 
 
 
 
 
 
Geneva, Switzerland
 
 
 
 
 
 
 
 
Chemin de l Epinglier 2
Data Center
59,190

—

—


$1,556

100.0
%
100.0
%
—

Total
 
59,190

—

—


$1,556

100.0
%
100.0
%
—


31

Occupancy Analysis
Financial Supplement
Dollars in thousands
Third Quarter 2015


 
 
 
 
 
 
Occupancy (5)
 
Property
Property Type
Net Rentable
Square Feet (1)
Space Under
Active Development (2)
Space Held for
Development (3)
Annualized
Rent (4)
30-Sep-15
30-Jun-15
TKF & Colo IT Load (6)
 
 
 
 
 
 
 
 
 
ASIA PACIFIC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Singapore
 
 
 
 
 
 
 
 
29A International Business Park
Data Center
368,000

—

2,500


$52,649

95.0
%
94.9
%
21.1

3 Loyang Way
Data Center
—

177,000

—

—

—

—

—

Total
 
368,000

177,000

2,500


$52,649

95.0
%
94.9
%
21.1

 
 
 
 
 
 
 
 
 
Melbourne
 
 
 
 
 
 
 
 
Deer Park 2 (72 Radnor Drive)
Data Center
65,403

—

28,179


$7,195

94.4
%
94.3
%
4.3

98 Radnor Drive
Data Center
52,988

—

—

5,792

71.6
%
71.6
%
2.9

Total
 
118,391

—

28,179


$12,987

84.2
%
84.1
%
7.2

 
 
 
 
 
 
 
 
 
Sydney
 
 
 
 
 
 
 
 
1-11 Templar Road (16)
Data Center
64,817

18,605

2,795


$10,116

99.4
%
99.3
%
4.8

23 Waterloo Road
Data Center
51,990

—

—

1,054

100.0
%
100.0
%
—

Total
 
116,807

18,605

2,795


$11,170

99.7
%
99.6
%
4.8

 
 
 
 
 
 
 
 
 
NON-DATACENTER PROPERTIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
34551 Ardenwood Boulevard
Technology Manufacturing
307,657

—

—


$3,756

50.6
%
50.6
%
—

2010 East Centennial Circle
Technology Manufacturing
113,405

—

—

3,194

100.0
%
100.0
%
—

47700 Kato Road & 1055 Page Avenue
Technology Manufacturing
199,352

—

—

2,631

100.0
%
100.0
%
—

1 Solutions Parkway (17)
Technology Office
156,000

—

—

2,546

100.0
%
100.0
%
—

8201 E. Riverside Drive Building 4 - 6
Technology Manufacturing
133,460

—

—

957

74.9
%
93.1
%
—

908 Quality Way
Technology Office
14,400

—

—

—

100.0
%
100.0
%
—

Total
 
924,274

—

—


$13,084

79.9
%
82.5
%
—

 
 
 
 
 
 
 
 
 
Consolidated Portfolio Total/Weighted Average
 
20,041,129

1,385,315

1,253,308


$1,293,467

92.5
%
93.2
%
473.8

 
 
 
 
 
 
 
 
 
MANAGED UNCONSOLIDATED JOINT VENTURES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Northern Virginia
 
 
 
 
 
 
 
 
43915 Devin Shafron Drive (Bldg A)
Data Center
132,280

—

—


$17,554

100.0
%
100.0
%
9.0

43790 Devin Shafron Drive (Bldg E)
Data Center
152,138

—

—

3,425

100.0
%
100.0
%
—

21551 Beaumeade Circle
Data Center
152,504

—

—

2,215

100.0
%
100.0
%
—

7505 Mason King Court
Data Center
109,650

—

—

1,958

100.0
%
100.0
%
—

Total
 
546,572

—

—


$25,152

100.0
%
100.0
%
9.0

 
 
 
 
 
 
 
 
 
Hong Kong
 
 
 
 
 
 
 
 
33 Chun Choi Street
Data Center
114,326

—

71,974


$14,959

77.2
%
77.2
%
5.8

Total
 
114,326

—

71,974


$14,959

77.2
%
77.2
%
5.8

 
 
 
 
 
 
 
 
 
Silicon Valley
 
 
 
 
 
 
 
 
4650 Old Ironsides Drive
Data Center
124,383

—

—


$4,287

100.0
%
100.0
%
—

2950 Zanker Road
Data Center
69,700

—

—

3,246

100.0
%
100.0
%
—

4700 Old Ironsides Drive
Data Center
90,139

—

—

2,184

100.0
%
100.0
%
—

444 Toyama Drive
Data Center
42,083

—

—

2,060

100.0
%
100.0
%
—

Total
 
326,305

—

—


$11,777

100.0
%
100.0
%
—

 
 
 
 
 
 
 
 
 
Dallas
 
 
 
 
 
 
 
 
14901 FAA Boulevard
Data Center
263,700

—

—


$5,451

100.0
%
100.0
%
—

900 Dorothy Drive
Data Center
56,176

—

—

1,710

100.0
%
100.0
%
—

Total
 
319,876

—

—


$7,161

100.0
%
100.0
%
—

 
 
 
 
 
 
 
 
 
New York
 
 
 
 
 
 
 
 
636 Pierce Street
Data Center
108,336

—

—


$3,190

100.0
%
100.0
%
3.4

Total
 
108,336

—

—


$3,190

100.0
%
100.0
%
3.4

 
 
 
 
 
 
 
 
 
Managed Unconsolidated Portfolio Total/Weighted Average
 
1,415,415

—

71,974


$62,238

98.2
%
98.2
%
18.2

 
 
 
 
 
 
 
 
 
Managed Portfolio Total/Weighted Average
 
21,456,544

1,385,315

1,325,282


$1,355,705

92.9
%
93.5
%
492.0

 
 
 
 
 
 
 
 
 
Digital Realty Share Total/Weighted Average (18)
 
20,358,510

1,385,315

1,289,295


$1,310,402

92.6
%
93.2
%
478.5

 
 
 
 
 
 
 
 
 
NON-MANAGED UNCONSOLIDATED JOINT VENTURES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Seattle
 
 
 
 
 
 
 
 
2001 Sixth Avenue
Data Center
400,369

—

—


$36,267

94.6
%
94.4
%
—

2020 Fifth Avenue
Data Center
51,000

—

—

6,592

100.0
%
100.0
%
—

Total
 
451,369

—

—


$42,859

95.2
%
95.0
%
—

 
 
 
 
 
 
 
 
 
Non-Managed Portfolio Total/Weighted Average
 
451,369

—

—


$42,859

95.2
%
95.0
%
—

 
 
 
 
 
 
 
 
 
Portfolio Total/Weighted Average
 
21,907,913

1,385,315

1,325,282


$1,398,564

93.0
%
93.5
%
492.0




32

Occupancy Analysis
Financial Supplement
Dollars in thousands
Third Quarter 2015


(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)
Space under active development includes current Base Building and Data Center projects in progress. See page 34.
(3)
Space held for development includes space held for future Data Center development, and excludes space under active development. See page 38.
(4)
Annualized base rent represents the monthly contractual base rent (defined as cash base rent before abatements) under existing leases as of September 30, 2015 multiplied by 12.
(5)
Occupancy excludes space under active development and 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.
(6)
IT Load MW Capacity represents UPS-backed utility power dedicated to Digital Realty's operated data center space. Excludes any power associated with Powered Base Building® and Non-Technical product types.
(7)
Includes approximately 17,105 rentable square feet from a leasehold interest acquisition.
(8)
Building formerly referred to as 1215 Datacenter Park.
(9)
Building formerly referred to as 1301 International Parkway.
(10)
Building was razed during Q4 2013 and added to the Land Inventory pursuant to our business plan. See page 38.
(11)
Building formerly referred to as 800 Central Expressway.
(12)
Includes approximately 116,843 rentable square feet from a leasehold interest acquisition.
(13)
Includes approximately 27,943 rentable square feet from a leasehold interest acquisition.
(14)
Building formerly referred to as The Chess Building.
(15)
Building formerly referred to as Unit B Prologis Park.
(16)
Building formerly referred to as 1-23 Templar Road.
(17)
Building formerly referred to as 1 Savvis Parkway.
(18)
Represents consolidated portfolio plus our managed portfolio of unconsolidated joint ventures based on our ownership percentage.

33

Development Lifecycle - Committed Active Development
Financial Supplement
Dollars in thousands
Third Quarter 2015


 
 
Base Building Construction
 
Data Center Construction
 
 
 
 
 
Total Active Development
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A
 
B
 
A + B
 
 
 
 
A
 
B
 
A + B
 
 
 
 
 
 
 
A
 
B
 
A + B
Metropolitan Area
 
# of Locations
Total Square Feet
Current Investment (1)
 
Future Funding Req. (2)
 
Total Expected Investment (3)
 
# of Locations
Total Square Feet
kW
Current Investment (1)
 
Future Funding Req. (2)
 
Total Expected Investment (3)
% Leased
Average Expected Completion Period
Est. GAAP Yield. (4)
Est. Stabilized Cash Yield (4)
 
# of Locations
Total Square Feet
Current Investment (1)
 
Future Funding Req. (2)
 
Total Expected Investment (3)
Chicago
 
1
99,597


$32,760

 

$13,602

 

$46,362

 
1
50,000

3,600


$13,359

 

$20,873

 

$34,232

41.3

2Q16




 
1
149,597


$46,119

 

$34,475

 

$80,594

Dallas
 
1
413,316

6,134

 
59,900

 
66,035

 
4
184,153

14,975

53,592

 
99,224

 
152,815

100.0
%
2Q16




 
4
597,469

59,726

 
159,124

 
218,850

N. Virginia
 
2
168,774

11,695

 
14,825

 
26,520

 
2
131,576

11,000

43,745

 
68,143

 
111,888

74.1
%
1Q16




 
2
300,350

55,440

 
82,968

 
138,408

Toronto
 
—
—

—

 
—

 
—

 
1
26,456

2,700

8,732

 
34,839

 
43,571

51.0
%
3Q16




 
1
26,456

8,732

 
34,839

 
43,571

North America
 
4
681,687


$50,589

 

$88,327

 

$138,917

 
8
392,185

32,275


$119,428

 

$223,078

 

$342,506

80.5
%
 
13.2
%
12.3
%
 
8
1,073,872


$170,017

 

$311,406

 

$481,423

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dublin
 
—
—

—

 
—

 
—

 
1
19,597

1,920


$12,415

 

$5,820

 

$18,236

—

1Q16
 
 
 
1
19,597


$12,415

 

$5,820

 

$18,236

London
 
—
—

—

 
—

 
—

 
2
96,241

5,500

39,730

 
33,629

 
73,358

68.5
%
2Q17
 
 
 
2
96,241

39,730

 
33,629

 
73,358

Europe
 
—
—

—

 
—

 
—

 
3
115,838

7,420


$52,145

 

$39,449

 

$91,594

56.9
%
 
11.7
%
10.5
%
 
3
115,838


$52,145

 

$39,449

 

$91,594

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Singapore
 
1
121,335


$41,090

 

$28,096

 

$69,185

 
1
55,665

3,600


$16,574

 

$29,357

 

$45,932

—

2Q16
 
 
 
1
177,000


$57,664

 

$57,453

 

$115,117

Sydney
 
—
—

—

 
—

 
—

 
1
18,605

2,160

18,262

 
1,648

 
19,910

22.2
%
4Q15
 
 
 
1
18,605

18,262

 
1,648

 
19,910

Asia Pacific
 
1
121,335


$41,090

 

$28,096

 

$69,185

 
2
74,270

5,760


$34,836

 

$31,006

 

$65,842

5.6
%
 
15.5
%
14.8
%
 
2
195,605


$75,926

 

$59,101

 

$135,027

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
5
803,022


$91,679

 

$116,423

 

$208,102

 
13
582,293

45,455


$206,410

 

$293,533

 

$499,943

66.3
%
 
13.2
%
12.3
%
 
13
1,385,315


$298,088

 

$409,956

 

$708,045


(1)
Represents balances incurred through September 30, 2015.
(2)
Represents estimated cost to complete specific scope of work pursuant to contract, budget or approved capital plan.
(3)
For Base Building construction, represents the pro rata share of the acquisition and infrastructure costs related to the specific Base Building project. For Data Center construction, represents the pro rata share of the acquisition and infrastructure costs, or Base Building construction costs, applicable to the specific Data Center project plus the total direct investment in the specific Data Center project.
(4)
Estimated yields are based on total expected investment amounts and anticipated net operating income from leases signed or other assumptions based on market conditions. These yields are based on current estimates and actual results may vary.
Note:
Square footage is based on current estimates and project plans, and may change upon completion of the project and due to remeasurement.

34

Development Lifecycle - In Service
Financial Supplement
Dollars in thousands
Third Quarter 2015


 
 
Pre-Stabilized (1)
Metropolitan Area
 
# of Locations
Total Square Feet
kW
Total Current Investment (2)
% Leased
Est. GAAP Yield. (3)
Est. Stabilized Cash Yield (3)
Austin
 
1
34,872

2,240


$35,548

—

 
 
Boston
 
1
7,655

237

3,624

6.3
%
 
 
Chicago
 
2
19,160

1,492

19,258

31.8
%
 
 
Dallas
 
1
8,375

363

3,720

—

 
 
Houston
 
1
20,228

1,498

17,619

—

 
 
New York
 
3
11,722

818

12,384

—

 
 
Northern Virginia
 
1
10,662

701

7,356

5.7
%
 
 
Phoenix
 
1
29,467

879

12,426

42.7
%
 
 
Silicon Valley
 
2
7,138

655

10,628

39.7
%
 
 
St. Louis
 
1
45,818

1,635

25,972

0.9
%
 
 
North America
 
14
195,097

10,518


$148,535

11.2
%
10.4
%
9.8
%
 
 
 
 
 
 
 
 
 
Dublin
 
1
1,857

180


$1,612

—

 
 
London
 
2
18,089

1,558

23,482

6.4
%
 
 
Europe
 
3
19,946

1,738


$25,094

5.7
%
12.5
%
11.8
%
 
 
 
 
 
 
 
 
 
Melbourne
 
2
14,088

925


$12,380

77.8
%
 
 
Singapore
 
1
12,725

1,000

12,297

—

 
 
Asia Pacific
 
3
26,813

1,925


$24,677

37.4
%
14.1
%
13.3
%
 
 
 
 
 
 
 
 
 
Subtotal Consolidated Portfolio
 
20
241,856

14,181


$198,306

14.1
%
11.2
%
10.5
%
 
 
 
 
 
 
 
 
 
Hong Kong
 
1
26,062

1,440


$27,413

16.7
%
 
 
Subtotal Unconsolidated JV (4)
 
1
26,062

1,440


$27,413

16.7
%
14.1
%
13.3
%
 
 
 
 
 
 
 
 
 
Grand Total
 
21
267,918

15,621


$225,719

14.3
%
11.5
%
10.9
%

(1)
In service inventory requiring lease commencement.
(2)
For Data Center construction, represents the pro rata share of the acquisition and infrastructure costs, or Base Building construction costs, applicable to the specific Data Center project plus the total direct investment in the specific Data Center project.
(3)
Estimated yields are based on total expected investment amounts and anticipated net operating income from leases signed or other assumptions based on market conditions. These yields are based on current estimates and actual results may vary.
(4)
Square Footage, kW and Investment figures shown represent the gross amount at the Joint Venture level. For Hong Kong, Digital Realty's ownership percentage is 50%.
Note: Square footage is based on current estimates and project plans, and may change upon completion of the project and due to remeasurement.

35

Construction Projects in Progress -
Total Investments
Financial Supplement
Dollars in thousands, except per square foot
Third Quarter 2015


Construction Projects in Progress - Total Investments
 
Net Rentable
Square Feet (6)
Acreage
Current Investment (7)
Future Investment (8)
Total Investment
Total Cost/
Net Rentable Square Foot
Development Lifecycle
 
 
 
 
 
 
 
Land Inventory (1)
 
 N/A

166.8


$133,343

—


$133,343

 
Development CIP
 
 
 
 
 
 
 
Space Held for Development (1)
 
1,253,308

 N/A


$244,112

—


$244,112


$195

Base Building Construction (2)
 
803,022

 N/A

91,679


$116,423

208,102

259

Data Center Construction (3)
 
582,293

 N/A

206,410

293,533

499,943

859

Equipment Pool & Other Inventory (4)
 
 N/A

 N/A

11,875

—

11,875

 
Campus, Tenant Improvements & Other (5)
 
 N/A

 N/A

16,522

22,381

38,903

 
Total Development CIP
 
2,638,623

 

$570,598


$432,337


$1,002,935

 
 
 
 
 
 
 
 
 
Enhancement & Other
 
 
 

$6,414


$3,412


$9,826

 
Recurring
 
 
 
19,705

71,548

91,253

 
Total Construction in Progress
 
 
 

$730,060


$507,297


$1,237,357

 

(1)
Land Inventory and Space Held for Development reflect cumulative cost spent pending future development. Excludes square footage and cost incurred on unconsolidated joint ventures.
(2)
Base Building Construction consists of ongoing improvements to building infrastructure in preparation for future data center fit-out.
(3)
Data Center Construction includes 582,293 square feet of Turn-Key Flex®, Custom Solutions and Powered Base Building® space.
(4)
Equipment Pool and Other Inventory represents long-lead time equipment and materials required for timely deployment and delivery of data center fit-out.
(5)
Represents improvements in progress as of September 30, 2015 which benefit space recently converted to our operating portfolio and is composed primarily of shared infrastructure projects and first generation tenant improvements.
(6)
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.
(7)
Represents balances incurred through September 30, 2015.
(8)
Represents estimated cost to complete specific scope of work pursuant to contract, budget or approved capital plan.
Note: We capitalize interest on active construction work. Base Building Construction, Data Center Construction, Equipment Pool, Campus Improvements, Enhancements and Recurring are considered active construction work.


36

Historical Capital Expenditures and
Investments in Real Estate
Financial Supplement
Dollars in thousands
Third Quarter 2015


 
Three Months Ended
Nine Months Ended
 
30-Sep-15 (1)
 
30-Jun-15 (1)
 
31-Mar-15(1)
 
31-Dec-14
 
30-Sep-14
 
30-Sep-15
 
30-Sep-14
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Recurring Capital Expenditures(2)
 
 
 
 
 
 
 
 
 
 
 
 
 
Development

$123,732

 

$135,347

 

$125,647

 

$169,835

 

$159,410

 

$384,726

 

$517,368

Enhancements and Other Non-Recurring
1,866

 
2,121

 
6,194

 
16,899

 
16,010

 
10,181

 
48,144

Total Non-Recurring Capital Expenditures

$125,598

 

$137,468

 

$131,842

 

$186,734

 

$175,420

 

$394,908

 

$565,512

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recurring Capital Expenditures(3)

$14,716

 

$23,708

 

$18,066

 

$21,040

 

$11,481

 

$56,490

 

$31,521

Recurring Capital Expenditures

$14,716

 

$23,708

 

$18,066

 

$21,040

 

$11,481

 

$56,490

 

$31,521

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Direct

$140,314

 

$161,176

 

$149,907

 

$207,774

 

$186,901

 

$451,397

 

$597,033

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalized Interest

$2,395

 

$3,155

 

$4,346

 

$4,767

 

$5,406

 

$9,896

 

$15,606

Capitalized Overhead
15,060

 
12,442

 
12,317

 
12,903

 
13,348

 
39,819

 
37,196

Total Indirect Capital Expenditures

$17,455

 

$15,597

 

$16,663

 

$17,670

 

$18,754

 

$49,715

 

$52,802

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Timing / FX adjustments
7,337

 
9,446

 
17,247

 
(17,695
)
 
7,765

 
34,029

 
(5,198
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Improvements to and Advances for Investment in Real Estate

$165,106

 

$186,219

 

$183,817

 

$207,749

 

$213,420

 

$535,142

 

$644,637

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Portfolio Net Rentable Square Feet (4)
20,358,510

 
20,203,927

 
20,548,860

 
20,600,484

 
20,431,355

 
20,358,510

 
20,431,355


(1)
Beginning in the first quarter of 2015, we changed the presentation of certain capital expenditures.  Infrequent expenditures for capitalized replacements and upgrades are now categorized as Recurring capital expenditures (categorized as Enhancements and Other Non-Recurring capital expenditures in 2014).  First-generation leasing costs are now classified as Development capital expenditures (categorized as recurring capital expenditures in 2014).
(2)
Non-recurring capital expenditures are primarily for development of space and land, excluding acquisition costs. In 2014, these expenditures include certain infrequent expenditures for capitalized replacements, upgrades, or other projects which enhance the existing operating portfolio (e.g., electrical, mechanical and building upgrades).
(3)
Recurring capital expenditures represent non-incremental building improvements required to maintain current revenues, including second-generation tenant improvements and leasing commissions. Recurring capital expenditures do not include acquisition capital that was taken into consideration when underwriting the purchase of a building, costs which are incurred to bring a building up to Digital Realty's operating standards, or internal leasing commissions.
(4)
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.

37

Development Lifecycle - Held for Development
Financial Supplement
Dollars in thousands
Third Quarter 2015


 
 
Land Inventory (1)
 
Space Held for Development
 
 
 
 
 
 
 
 
 
Metropolitan Area
 
# of Locations
Acres
Current Investment (2)
 
# of Locations
Total Square Feet
Current Investment (2)
Austin
 
1

7.2


$1,879

 
1

25,343


$942

Boston
 
—

—

—

 
2

130,014

41,185

Chicago
 
—

—

—

 
3

193,662

24,053

Dallas
 
3

65.7

8,370

 
4

79,200

7,712

Houston
 
—

—

—

 
1

22,722

2,726

New York
 
1

34.2

43,702

 
5

328,419

88,008

N. Virginia
 
1

7.5

4,642

 
2

67,652

18,864

Phoenix
 
—

—

—

 
1

108,926

11,753

Sacramento
 
—

—

—

 
1

23,397

6,398

San Francisco
 
—

—

—

 
1

18,522

2,352

Silicon Valley
 
2

9.5

12,234

 
1

13,440

5,481

St. Louis
 
—

—

—

 
2

84,268

11,641

Toronto
 
—

—

—

 
1

14,403

941

North America
 
8

124.1


$70,827

 
25

1,109,968


$222,056

 
 
 
 
 
 
 
 
 
Amsterdam
 
1

5.4


$12,336

 
—

—

—

Dublin
 
1

7.5

9,678

 
1

2,084


$64

London
 
1

13.4

24,075

 
2

107,782

15,084

Europe
 
3

26.3


$46,089

 
3

109,866


$15,148

 
 
 
 
 
 
 
 
 
Melbourne
 
1

4.1


$1,569

 
1

28,179


$5,956

Osaka
 
1

3.7

11,393

 
—

—

—

Singapore
 
—

—

—

 
1

2,500

809

Sydney
 
1

8.6

3,466

 
1

2,795

144

Asia Pacific
 
3

16.4


$16,428

 
3

33,474


$6,908

 
 
 
 
 
 
 
 
 
Subtotal Consolidated Portfolio
 
14

166.8


$133,343

 
31

1,253,308


$244,112

 
 
 
 
 
 
 
 
 
Hong Kong
 
—

—

—

 
1

71,974

11,665

Subtotal Unconsolidated JV
 
—

—

—

 
1

71,974


$11,665

 
 
 
 
 
 
 
 
 
Grand Total
 
14

166.8


$133,343

 
32

1,325,282


$255,777


(1)
Represents properties acquired to support ground-up development.
(2)
Represents balances incurred through September 30, 2015. Includes the cost of acquisition as well as cost of improvements since acquisition to prepare for future building construction.
Note: Square footage is based on current estimates and project plans, and may change upon completion of the project and due to remeasurement.


38

Acquisitions/ Dispositions/ Joint Ventures
Financial Supplement
Dollars in thousands
Third Quarter 2015


Acquisitions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property
 
Metropolitan Area
 
Date Acquired
 
Purchase Price
 
Cap Rate (1)
 
 Net Rentable Square Feet (2)
 
Space Held For Development
 
% of Total Net Rentable Square
Feet Occupied (3)
None
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 

 
 
 
 
 
 
 
 
Dispositions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property
 
Metropolitan Area
 
Date Sold
 
Sale Price
 
Cap Rate (1)
 
 Net Rentable Square Feet (2)
 
Space Held For Development
 
% of Total Net Rentable Square
Feet Occupied (3)
None
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 

 
 
 

 
 
 
 

Joint Ventures:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property
 
Metropolitan Area
 
Date Contributed to Joint Venture
 
Contribution Price
 
Cap Rate (1)
 
 Net Rentable Square Feet (2)
 
Space Held For Development
 
% of Total Net Rentable Square
Feet Occupied (3)
None
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    


(1)
We calculate the cash capitalization rate on acquisitions, dispositions and joint venture contributions by dividing anticipated annual net operating income by the purchase/sale/contribution price, including assumed debt and related pre-payment penalties. Net operating income represents rental revenue and tenant reimbursement revenue from in-place leases, less rental property operating and maintenance expenses, property taxes and insurance expenses, and is not a financial measure calculated in accordance with GAAP. We caution you not to place undue reliance on our cash capitalization rates because they are based solely on data made available to us in the diligence process in connection with the relevant acquisitions and are calculated on a non-GAAP basis. Our calculation of the cash capitalization rate on acquisitions may change, based on our experience operating the properties subsequent to closing of the acquisitions. In addition, the actual cash capitalization rates may differ from our expectations based on numerous other factors, including the results of our final purchase price allocation, difficulties collecting anticipated rental revenues, tenant bankruptcies, property tax reassessments and unanticipated expenses at the properties that we cannot pass on to tenants.
(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 under active development and space held for development.

39

Unconsolidated Joint Ventures ("JVs")
Financial Supplement
Dollars in thousands
Third Quarter 2015

 
As of September 30, 2015
 
2001 Sixth Avenue
2020 Fifth Avenue
33 Chun Choi Street (Hong Kong)
Prudential
Griffin
Total
Summary Balance Sheet - at the JV's 100% Share
 
 
 
 
 
 
Undepreciated book value of operating real estate
$122,261
$48,536
$146,998
$441,286
$123,763
$882,844
Accumulated depreciation & amortization
(87,870)
(1,774)
(6,798)
(19,323)
(3,252)
(119,017)
Net Book Value of Operating Real Estate
$34,391
$46,762
$140,200
$421,963
$120,511
$763,827
Other assets
10,828
8,590
37,961
61,102
57,173
175,654
Total Assets
$45,219
$55,352
$178,161
$483,065
$177,684
$939,481
 
 
 
 
 
 
 
Debt
$103,393
$47,000
—

$208,000
$102,025
$460,418
Other liabilities
4,873
1,367
$3,111
85,501
3,435
98,287
Equity / (deficit)
(63,047)
6,985
175,050
189,564
72,224
380,776
Total Liabilities and Equity
$45,219
$55,352
$178,161
$483,065
$177,684
$939,481
 
 
 
 
 
 
 
Digital Realty's ownership percentage
50.0
%
50.0
%
50.0
%
20.0
%
20.0
%
 
 
 
 
 
 
 
 
Digital Realty's Pro Rata Share of Unconsolidated JV Debt
$51,697
$23,500
$0
$41,600
$20,405
$137,202
 
Three Months Ended September 30, 2015
Summary Statement of Operations - at the JV's 100% Share
2001 Sixth Avenue
2020 Fifth Avenue
33 Chun Choi Street (Hong Kong)
Prudential
Griffin
Total
Total revenues
$11,107
$2,132
$4,371
$9,881
$4,940
$32,431
Operating expenses
(3,628)
(311)
(1,235)
(1,423)
(2,116)
(8,713)
Net Operating Income (NOI)
$7,479
$1,821
$3,136
$8,458
$2,824
$23,718
Straight-line rent
(81)
(163)
(114)
(570)
(301)
(1,229)
Cash Net Operating Income (NOI)
$7,398
$1,658
$3,022
$7,888
$2,523
$22,489
 
 
 
 
 
 
 
Interest expense
($1,685)
($391)
—

($1,325)
($841)
($4,242)
Depreciation & amortization
(1,797)
(181)
($1,380)
(3,170)
(2,239)
(8,767)
Other income / (expense)
(66)
(37
)
(400)
(132)
(132)
(767)
Total Non-Operating Expenses
($3,548)
($609)
($1,780)
($4,627)
($3,212)
($13,776)
 
 
 
 
 
 
 
Net Income
$3,931
$1,212
$1,356
$3,831
($388)
$9,942
 
 
 
 
 
 
 
Digital Realty's ownership percentage
50
%
50
%
50
%
20
%
20
%
 
 
 
 
 
 
 
 
Digital Realty's Pro Rata Share of Unconsolidated JV NOI
$3,740
$911
$1,568
$1,692
$565
$8,476
 
 
 
 
 
 
 
Digital Realty's Pro Rata Share of Unconsolidated JV Cash NOI
$3,699
$829
$1,511
$1,578
$505
$8,122
 
 
 
 
 
 
 
Digital Realty's Earnings (loss) from unconsolidated JVs (1)
$1,659
$606
$679
$785
$414
$4,143
 
 
 
 
 
 
 
Digital Realty's Pro Rata Share of FFO (2)
$2,558
$697
$1,369
$1,419
$862
$6,905
 
 
 
 
 
 
 
Digital Realty's Fee Income from JV
$0
$0
$134
$852
$398
$1,384

(1)
Values represent Digital Realty's basis and may not be comparable to values reflected in the entities' stand alone financial statements calculated on a different basis. Total excludes immaterial equity investments.
(2)
For a definition of FFO, see page 46.

40

External Growth Pipeline
Financial Supplement
Central - Chicago
Third Quarter 2015




Master Plan


Property Address
Sq. Ft.
IT Load MW Capacity (1)
Leased % (2)
Development Status
9333 W. Grand Ave., Franklin Park, IL
117,515

6.8

90.4
%
Completed
9355 W. Grand Ave., Franklin Park, IL
251,500

14.4

65.3
%
Active development - base building and data center
9377 W. Grand Ave., Franklin Park, IL
166,709

12.8

—

Planned for future ground-up development

Asset
•
Digital Chicago Campus – 9333, 9355 and 9377 W. Grand Avenue, Franklin Park IL

Background
•
In May 2012, Digital Realty acquired the three-building, 22-acre campus and created the Digital Chicago Campus.
•
Based on strong demand for our Turn-Key Flex® data center product, as well as limited supply in the area, the first phase of construction began with the redevelopment of the 9333 W. Grand Ave. building in August 2012 to accommodate 117,515 square feet and provide 6.8 MW of IT Load.
•
As market conditions continued to show limited supply of competitive space along with strong leasing activity in phase one, redevelopment of the 9355 W. Grand Ave. building commenced in June 2013 to accommodate 251,500 square feet and 14.4MW of IT Load in eight 1,800 kW data centers.

Opportunity
•
Upon completion, the Digital Chicago Campus will have development potential of 535,724 square feet to support upwards of 34 MW of IT Load.
•
Campus utility service is provided by ComEd with 60 MW delivered by multiple 34.5kV services.
•
The 9333 W. Grand Ave. building includes four Turn-Key Flex® data centers and is 90.4% leased based upon total IT Load.
•
The second phase, 9355 W. Grand Ave., is currently under active redevelopment, with the first four 1,800 kW data centers completed and leased. A fourth 1,800 kW data center is preleased and under construction and scheduled to be delivered 4Q2015. A 2,200 kW lease was signed in 3Q2015 for a portion of a 3,600 kW suite being built on the first floor for delivery in 1Q2016. The remaining space on the first floor can accommodate 3,600 to 7,200 kW of IT Load and will be developed based upon customer demand.
•
The third phase is planned for a future ground-up development where the 9377 W. Grand Ave. building is sited today. The site is currently planned for a 166,709 square foot building to accommodate 12.8 MW of IT Load.

(1)
IT Load MW Capacity represents UPS-backed power dedicated to Digital Realty's operated data center space and excludes any power associated with Powered Base Building and non-technical space.
(2)
Leased percentages include preleased space and will not necessarily be the same as occupancy percentages included in the Occupancy Analysis (p.29-33) due to differences between lease execution and occupancy dates.


41

External Growth Pipeline
Financial Supplement
Central - Dallas
Third Quarter 2015

Master Plan
Property Address
Sq. Ft.
IT Load MW Capacity (1)
Leased % (2)
Development Status
850 E. Collins Blvd., Richardson, TX
121,366

6.9

92.0
%
Completed. 0.6 MW under option expected to increase Leased % to 100%
904 Quality Way, Richardson, TX
46,750

4.5

100.0
%
Completed
1232 Alma Rd., Richardson, TX
105,726

6.8

100.0
%
Completed
950 E. Collins Blvd., Richardson, TX
121,286

7.2

100.0
%
Completed
1215 Integrity Drive, Richardson, TX
117,876

7.0

100.0
%
Active Development - data centers
900 Quality Way, Richardson, TX
114,922

7.0

100.0
%
Active Development - data centers
907 Security Row, Richardson, TX
139,000

9.6

87.5
%
Active development - base building and data centers
1210 Integrity Drive, Richardson, TX
420,000

36.0

8.9
%
Active development - base building and data centers
908 Quality Way, Richardson, TX
66,000

4.8

—

Planned for future ground-up development
750 E. Collins Boulevard, Richardson, TX
TBD

TBD

—

Planned for future management office
Asset
•
Digital Dallas Campus is a 70 acre master-planned property located within the renowned “Telecom Corridor” of Richardson, TX, a suburb of Dallas.
Background
•
Originally acquired in 2009 as part of a 60/40 joint venture. Digital Realty subsequently acquired the entire ownership interest in 2011.
•
Development has included a mix of redevelopment and ground-up construction of Powered Base Buildings®, multi-tenant data centers and a Digital Realty owned 122 MW sub-station.
•
In six years, Digital Realty has completed or actively developed 767,000 square feet in seven buildings.
•
The campus has approximately 35.7 MW of IT Load currently in operation, with approximately 8.4 MW of leased data center space that is under construction and 4.8 MW of IT Load in leased data center shell space pending commencement of construction.
•
Construction commenced October 2014 on 907 Security Row to originally accommodate 8.4 MW of IT Load in seven 1.2 MW data centers and has now been upgraded to accommodate 9.6 MW of IT Load. The 139,000 square foot Powered Base Building and the first 1.2 MW data center were delivered in July 2015. Leases are signed or under negotiation for the remaining 8.4 MW of IT Load for delivery in 4Q2015 and 1Q2016.
•
Design and pre-construction activities commenced September 2015 at 1210 Integrity Drive.
Opportunity
•
The campus has a little over 18 acres of land available at sites highlighted above as "Planned for Future Development" for new one and two-story ground-up developments that could support three new buildings and would increase the size of the campus by another 486,000 square feet.
•
New buildings planned for future development have the potential to add another 40.8 MW of IT Load to the Digital Dallas Campus.

(1)
IT Load MW Capacity represents UPS-backed power dedicated to Digital Realty's operated data center space and excludes any power associated with Powered Base Building and non-technical space.
(2)
Leased percentages include preleased space and will not necessarily be the same as occupancy percentages included in the Occupancy Analysis (p.29-33) due to differences between lease execution and occupancy dates.

42

External Growth Pipeline
Financial Supplement
East - Northern Virgina
Third Quarter 2015


Master Plan
Property Address
Sq. Ft.
IT Load MW Capacity (1)
Leased % (2)
Development Status
43940 Digital Loudoun Plaza (Bldg. G)
392,711

25.7

85.8
%
Held for development - data center with 3.6 MW under option
44060 Digital Loudoun Plaza (Bldg. K)
284,463

19.8

91.2
%
Active development - base building and data centers
43780 Digital Loudoun Plaza (Bldg. H)
244,000

14.4

—

Planned for future ground-up development
44100 Digital Loudoun Plaza (Bldg. J)
216,000

15.2

15.2
%
Active development - base building
Asset
•
Existing Campus – Digital Ashburn Campus (Buildings A, B, C, D, E and F), Devin Shafron Drive, Ashburn, VA
•
Campus Expansion – Digital Ashburn Campus (Buildings G, H, J and K), Digital Loudoun Plaza, Ashburn, VA
Background
•
Digital Realty originally acquired three existing shell buildings (Buildings B, C and D) and developed the Digital Ashburn Campus in 2007.
•
Based on strong demand for Turn-Key Flex® data centers, the existing campus was expanded through a land acquisition in 2009 and Digital Realty developed three additional single-story buildings (Buildings A, E and F), bringing the combined existing campus to 829,739 square feet.
•
The campus was expanded in 2011 with the Loudoun Parkway North land acquisition, bringing the total campus to 98 acres.
Opportunity
•
Loudoun Parkway North campus is master-planned for four, two-story buildings (Buildings G, H, J and K), that upon completion, will provide approximately 1,137,174 square feet to support sixty-two Turn-Key Flex® data centers capable of supporting 75.05 MW of IT Load.
•
The site is supported by a dedicated sub-station capable of supplying 150 MW of power.
•
Building G, the first building on the expanded campus, was designed and constructed in two phases. The first phase is complete and the data center space is 100% leased and includes 10 Turn-Key Flex® data centers which provide 11.3 MW of IT Load. The second phase is under construction and will include 12 Turn-Key Flex® data centers which will provide 14.4 MW of IT Load and is currently 75% leased. The combined first and second phases are 85.8% leased. Upon exercise of an existing tenant's options, and commencement of backlog for 3.6 MW of Turn-Key Flex® data centers, Building G is expected to be 98% leased. The remaining 2% of vacant space relates to non-technical space expected to be absorbed by tenants as they occupy their data center spaces.
•
Building K is under construction to deliver 19.8 MW of IT Load in 16 Turn-Key Flex® data centers with 14.4 MW of IT Load delivered and 5.4 MW of IT Load currently under development. Building K has leased 19.12 MW or 96.6% of its total IT Load; including non-technical space the building is 91.2% leased.
•
Building J is designed to accommodate 15.2 MW of IT Load. Construction of the base building and the first two 1,200 kW suites are scheduled for delivery in 1Q2016. The building is currently 15.2% leased based upon space and is 29% pre-leased based upon IT Load.
•
Building H is designed to accommodate 14.4 MW of IT Load and is planned for future development based on demand.
 
(1)
IT Load MW Capacity represents UPS-backed power dedicated to Digital Realty's operated data center space and excludes any power associated with Powered Base Building and non-technical space.
(2)
Leased percentages include preleased space and will not necessarily be the same as occupancy percentages included in the Occupancy Analysis (p.29-33) due to differences between lease execution and occupancy dates.


43

External Growth Pipeline
Financial Supplement
East - New York
Third Quarter 2015


Master Plan

Property Address
Sq. Ft.
IT Load MW Capacity (1)
Leased % (2)
Development Status
365 S. Randolphville (Existing)
264,792

9.0

99.2
%
Completed
365 S. Randolphville (Addition)
86,656

5.4

33.3
%
Held for future development
3 Corporate Place
276,931

3.3

100.0
%
Completed
3 Corporate Place Annex
100,515

7.2

—

Held for future development
Asset
•
3 Corporate Place, Piscataway, NJ
•
365 South Randolphville Road, Piscataway, NJ
Background
•
Located in the New York metropolitan area within close proximity to Rutgers University, Digital Piscataway campus is an existing two-building campus recently expanded by 187,171 square feet.
•
Completed Powered Base Building improvements include a 86,656 square foot addition to 365 S. Randolphville Road and a free-standing 100,515 square foot annex at 3 Corporate Place.
•
A private 69KV on-site substation with 2 independent feeds, each capable of supporting the entire site load, creates a robust supply of power.
Opportunity
•
The 86,656 square foot addition to 365 S. Randolphville Road expanded the existing 264,792 square foot building to 351,448 square feet and provides an additional 5.4 MW of IT Load. Digital Realty has leased 1.8 MW of IT Load and plans to develop the remaining 3.6 MW of IT Load to meet current demand as needed.
•
The 100,515 square foot Annex at 3 Corporate Place provides capacity to add an additional 7.2 MW of IT Load and is ready to commence construction of data centers.
•
The campus is a premier, state-of-the-art facility, positioned to serve the expanding requirements of the financial services industry, and can take advantage of significant opportunities in the health care, telecommunications and government sectors in the New York metro area.

(1)
IT Load MW Capacity represents UPS-backed power dedicated to Digital Realty's operated data center space and excludes any power associated with Powered Base Building and non-technical space.
(2)
Leased percentages include preleased space and will not necessarily be the same as occupancy percentages included in the Occupancy Analysis (p.29-33) due to differences between lease execution and occupancy dates.


44

Reconciliation of Earnings Before Interest, Taxes, Depreciation, and Amortization and Financial Ratios
Financial Supplement
Unaudited and in thousands
Third Quarter 2015

Reconciliation of Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA) (1)
Three Months Ended
30-Sep-15
30-Jun-15
31-Mar-15
31-Dec-14
30-Sep-14
 
 
 
 
 
 
Net Income (Loss) Available to Common Stockholders

$38,522


$117,055


$101,728


($52,289
)

$109,314

Interest
48,138

46,114

45,466

46,396

48,169

Loss from early extinguishment of debt
—

148

—

—

195

Tax expense
1,754

2,615

1,675

1,201

1,178

Depreciation & amortization
136,974

131,524

129,073

133,327

137,474

Impairment of investments in real estate
—

—

—

113,970

12,500

EBITDA

$225,388


$297,456


$277,942


$242,605


$308,830

Change in fair value of contingent consideration
(1,594
)
352

(43,034
)
(3,991
)
(1,465
)
Severance related accrual, equity acceleration, and legal expenses
(3,676
)
1,301

1,396

—

—

Transactions
11,042

3,166

93

323

144

(Gain) loss on sale of property
207

(76,669
)
(17,820
)
—

—

Gain on contribution of properties to unconsolidated joint venture
—

—

—

—

(93,498
)
Gain on sale of investment
—

—

—

(14,551
)
—

Noncontrolling interests
864

2,486

2,142

(961
)
2,392

Preferred stock dividends
18,456

18,456

18,455

18,455

18,455

Adjusted EBITDA

$250,687


$246,548


$239,174


$241,880


$234,858

 
Three Months Ended
Financial Ratios
30-Sep-15
30-Jun-15
31-Mar-15
31-Dec-14
30-Sep-14
 
 
 
 
 
 
Total GAAP interest expense

$48,138


$46,114


$45,466


$46,396


$48,169

Capitalized interest
2,395

3,155

4,346

4,767

5,406

Change in accrued interest and other non-cash amounts
4,432

(11,522
)
13,477

(16,152
)
14,003

Cash Interest Expense (2)

$54,965


$37,747


$63,289


$35,011


$67,578

 
 
 
 
 
 
Scheduled debt principal payments

$1,693


$2,185


$2,255


$2,452


$3,039

Preferred dividends
18,456

18,456

18,455

18,455

18,455

Total Fixed Charges (3)

$70,682


$69,910


$70,522


$72,070


$75,069

 
 
 
 
 
 
Coverage
 
 
 
 
 
Interest coverage ratio (4)
5.0

5.0

4.8

4.7

4.4

Cash interest coverage ratio (5)
4.6

6.5

3.8

6.9

3.5

Fixed charge coverage ratio (6)
3.5

3.5

3.4

3.4

3.1

Cash fixed charge coverage ratio (7)
3.3

4.2

2.8

4.3

2.6

 
 
 
 
 
 
Leverage
 
 
 
 
 
Debt to total enterprise value (8) (9)
31.4
%
32.5
%
32.0
%
31.3
%
32.8
%
Debt plus preferred stock to total enterprise value (9)(10)
40.2
%
39.6
%
39.2
%
38.5
%
40.2
%
Pre-tax income to interest expense (11)
2.2

4.0

3.7

0.3

3.7

Net Debt to Adjusted EBITDA (12)
4.7

5.0

5.0

4.8

5.0


(1)
For definition and discussion of EBITDA and Adjusted EBITDA, see page 46.
(2)
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.
(3)
Fixed charges consist of GAAP interest expense, capitalized interest, scheduled debt principal payments and preferred dividends.
(4)
Adjusted EBITDA divided by GAAP interest expense plus capitalized interest.
(5)
Adjusted EBITDA divided by cash interest expense.
(6)
Adjusted EBITDA divided by fixed charges.
(7)
Adjusted EBITDA divided by the sum of cash interest expense, scheduled debt principal payments and preferred dividends.
(8)
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.
(9)
Enterprise value defined as market value equity plus debt plus preferred stock plus minority interest less cash and equivalents.
(10)
Same as (8), except numerator includes preferred stock.
(11)
Calculated as net income plus interest expense divided by GAAP interest expense.
(12)
Calculated as total debt at balance sheet carrying value (see page 6) less unrestricted cash and cash equivalents divided by the product of Adjusted EBITDA multiplied by four.

45


Management Statements on Non-GAAP Measures
Financial Supplement
 
Third Quarter 2015


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.

Core Funds from Operations:
We present core funds from operations, or core FFO, as a supplemental operating measure because, in excluding certain items that do not reflect core revenue or expense streams, it provides a performance measure that, when compared year over year, captures trends in our core business operating performance. We calculate core FFO by adding to or subtracting from FFO (i) termination fees and other non-core revenues, (ii) gain on sale of investment, (iii) significant transaction expenses, (iv) loss from early extinguishment of debt, (v) change in fair value of contingent consideration, (vi) equity in earnings adjustment for non-core items, (vii) severance accrual, equity acceleration, and legal expenses and (viii) other non-core expense adjustments. Because certain of these adjustments have a real economic impact on our financial condition and results from operations, the utility of core FFO as a measure of our performance is limited. Other REITs may not calculate core FFO in a consistent manner. Accordingly, our core FFO may not be comparable to other REITs' core FFO. Core FFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.

Constant Currency Core Funds from Operations:
We calculate constant-currency core funds from operations by adjusting the core funds from operations for foreign currency translations.

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/premium, (iv) non-cash stock-based compensation, (v) non-cash stock-based compensation acceleration, (vi) loss from early extinguishment of debt, (vii) straight-line rents, net, (viii) above-and below-market rent amortization, (ix) change in fair value of contingent consideration, (x) gain on sale of investment, (xi) non-cash tax expense/(benefit), (xii) capitalized leasing compensation, (xiii) recurring capital expenditures and (xiv) capitalized internal leasing commissions. 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, and impairment of investments in real estate, 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, change in fair value of contingent consideration, severance related accrual, equity acceleration, and legal expenses, gain on sale of property, gain on contribution of properties to unconsolidated joint ventures, gain on sale of equity investment, noncontrolling interests, and preferred stock dividends. Adjusted EBITDA is EBITDA excluding change in fair value of contingent consideration, severance related accrual, equity acceleration, and legal expenses, transactions, gain on sale of property, gain on contribution of properties to unconsolidated joint ventures, gain on sale of investment, noncontrolling interests, and preferred stock dividends. 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) and Cash NOI:
Net operating income, or NOI, represents rental revenue and tenant reimbursement revenue less utilities, rental property operating expenses, repair and maintenance expenses, property taxes and insurance expenses (as reflected in the statement of operations). NOI is common

46


Management Statements on Non-GAAP Measures
Financial Supplement
 
Third Quarter 2015


ly used by stockholders, company management and industry analysts as a measurement of operating performance of the company’s rental portfolio. Cash NOI is NOI less straight-line rents and above and below market rent amortization. Cash NOI is commonly used by stockholders, company management and industry analysts as a measure of property operating performance on a cash basis. However, because NOI and cash NOI exclude depreciation and amortization and capture neither the changes in the value of our properties that result from use or market conditions, nor the level of capital 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 and cash NOI as measures of our performance is limited. Other REITs may not calculate NOI and cash NOI in the same manner we do and, accordingly, our NOI and cash NOI may not be comparable to such other REITs’ NOI and cash NOI. Accordingly, NOI and cash NOI should be considered only as supplements to net income computed in accordance with GAAP as measures of our performance.
Additional Definitions
Net debt-to-Adjusted EBITDA ratio is calculated using total debt at balance sheet carrying value less unrestricted cash and cash equivalents divided by the product of Adjusted EBITDA multiplied by four.
Debt-plus-preferred-to-total-enterprise-value is mortgage debt and other loans plus preferred stock divided by mortgage debt and other loans plus the liquidation value of preferred stock and the market value of outstanding Digital Realty Trust, Inc. common stock and Digital Realty Trust, L.P. units, assuming the redemption of Digital Realty Trust, L.P. units for shares of Digital Realty Trust, Inc. common stock.
Fixed charge coverage ratio is Adjusted EBITDA divided by the sum of GAAP interest expense, capitalized interest, scheduled debt principal payments and preferred dividends. For the quarter ended September 30, 2015, GAAP interest expense was $48 million, capitalized interest was $2 million and scheduled debt principal payments and preferred dividends was $21 million.
(Dollars in thousands)
30-Sep-15
Reconciliation of Net Operating Income (NOI)
 
 
 
Operating income

$104,130

 
 
Less:
 
Fee income

($1,595
)
Other
(580
)
 
 
Add:
 
Change in fair value of contingent consideration
(1,594
)
Depreciation and amortization
136,974

General and administrative
26,431

Severance related accrual, equity acceleration, and legal expenses
(3,676
)
Transactions
11,042

Other
51

 
 
Net Operating Income

$271,183

 
 
Cash Net Operating Income (Cash NOI)
 
 
 
Net Operating Income

$271,183

Less:
 
Straight-line rent, net

($13,729
)
Above- and below-market rent amortization
(2,174
)
 
 
Cash Net Operating Income

$255,280


Reconciliation of Range of 2015 Projected Net Income to Projected FFO (NAREIT-Defined) and Core FFO
 
Low
High
Net income available to common stockholders per diluted share
$2.08
$2.14
Add:
 
 
Real estate depreciation and amortization and (gain)/loss on sale
$3.16
$3.16
Projected FFO per diluted share (NAREIT-Defined)
$5.24
$5.30
Adjustments for items that do not represent core expenses and revenue streams
($0.12)
($0.12)
Projected core FFO per diluted share
$5.12
$5.18
Foreign currency translation adjustments
$0.15
$0.15
Projected constant - currency core FFO per diluted share
$5.27
$5.33


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Statement Regarding Forward- Looking Statements
Financial Supplement
 
Third Quarter 2015

This document contains forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, statements related to the acquisition of Telx Holdings, Inc., supply and demand for data center and colocation space, pricing and net effective leasing economics, market dynamics and data center fundamentals, our strategic priorities, including improving return on invested capital and our disposition program, rent from leases that have been signed but have not yet commenced and other contracted rent to be received in future periods, rental rates on future leases, lag between signing and commencement, cap rates and yields, the company's FFO, core FFO, constant-currency core FFO, net income outlook and underlying assumptions, including information related to trends, our strategy and plans, 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 and plans, projected construction costs, estimated yields on investment, supply and demand, expected occupancy, expected square footage and IT load capacity upon completion of development projects, 2014 and 2015 backlog NOI, NAV components, 2015 guidance and underlying assumptions, 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 current global economic, credit and market conditions
•
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;
•
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, including Telx;
•
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, increased operating costs or increased vacancy rates;
•
increased competition or available supply of data center space;
•
our inability to successfully develop and lease new properties and development space;
•
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 under the heading “Risks Related to the Proposed Telx Acquisition” in our Current Report on Form 8-K filed on July 14, 2015, in our annual report on Form 10-K for the year ended December 31, 2014 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.

Note: Certain figures are rounded to the nearest thousand or to a tenth of a percent throughout the document. Subtotals and totals may not equal the amounts reflected due to such rounding.

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