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Investments in Real Estate (Tables)
12 Months Ended
Dec. 31, 2017
Business Combinations [Abstract]  
Schedule of Real Estate Properties
A summary of our data center portfolio as of December 31, 2017 and 2016 is as follows:
 
 
Data Centers
 
 
As of December 31, 2017
 
As of December 31, 2016
Region
 
Operating
 
Held for Sale
Unconsolidated Joint Ventures
Total
 
Operating
Held for Sale
Unconsolidated Joint Ventures
Total
United States
 
131

(1 
) 
7

14

152

 
123

3

14

140

Europe
 
38

 


38

 
37



37

Asia
 
3

 

4

7

 
3


1

4

Australia
 
5

 


5

 
4



4

Canada
 
3

(1 
) 


3

 
2



2

Total
 
180

 
7

18

205

 
169

3

15

187

(1)
Includes 15 data centers acquired as part of the merger with DuPont Fabros Technology, Inc., of which 14 are located in the United States and one is located in Canada.
A summary of our investments in properties as of December 31, 2017 and 2016 is as follows:
 
As of December 31, 2017
 
(in thousands)
Property Type
Land
 
Acquired
Ground
Lease
 
Buildings and
Improvements (1)
 
Tenant
Improvements
 
Accumulated
Depreciation
and
Amortization
 
Net
Investment
in Properties
Internet Gateway Data Centers
$
109,844

 
$

 
$
1,940,495

 
$
99,174

 
$
(778,659
)
 
$
1,370,854

Data Centers
1,010,306

 
11,150

 
13,147,042

 
453,712

 
(2,430,984
)
 
12,191,226

Technology Manufacturing
11,959

 

 
1,564

 
76

 
(31
)
 
13,568

Technology Office
2,067

 

 
23,029

 

 
(16,779
)
 
8,317

Other
2,165

 

 
103,275

 
78

 
(11,774
)
 
93,744

 
$
1,136,341

 
$
11,150

 
$
15,215,405

 
$
553,040

 
$
(3,238,227
)
 
$
13,677,709

 
 
As of December 31, 2016
 
(in thousands)
Property Type
Land
 
Acquired
Ground
Lease
 
Buildings and
Improvements (1)
 
Tenant
Improvements
 
Accumulated
Depreciation
and
Amortization
 
Net
Investment
in Properties
Internet Gateway Data Centers
$
109,083

 
$

 
$
1,834,052

 
$
93,472

 
$
(674,823
)
 
$
1,361,784

Data Centers
610,007

 
10,014

 
8,254,108

 
431,444

 
(1,932,127
)
 
7,373,446

Technology Manufacturing
20,199

 
1,321

 
57,765

 
6,333

 
(24,595
)
 
61,023

Technology Office
5,368

 

 
43,574

 
1,460

 
(21,407
)
 
28,995

Other
2,165

 

 
78,026

 
78

 
(15,557
)
 
64,712

 
$
746,822

 
$
11,335

 
$
10,267,525

 
$
532,787

 
$
(2,668,509
)
 
$
8,889,960

 
(1)
Balances include, as of December 31, 2017 and 2016, $1.4 billion and $0.7 billion of direct and accrued costs associated with development in progress, respectively.
Schedule of Real Estate Property Acquisitions
We completed the acquisition of DFT on September 14, 2017. A summary of the fair value of the assets and liabilities acquired for total equity of approximately $6.2 billion is as follows (in thousands):

 
 
Fair Value
 
Weighted Average Remaining Intangible Amortization Life (in months)
Land
 
$
312,579

 
 
Buildings and improvements
 
3,677,497

 
 
Cash and cash equivalents
 
20,650

 
 
Accounts and other receivables
 
10,978

 
 
Acquired above-market leases
 
162,333

 
47
Goodwill
 
2,592,181

 
 
Acquired in-place lease value, deferred leasing costs and intangibles:
 
 
 
 
Tenant relationship value
 
980,267

 
220
Acquired in-place lease value
 
557,128

 
70
Tenant origination costs
 
44,990

 
80
Global revolving credit facility, net (1)
 
(450,697
)
 
 
Unsecured term loans (1)
 
(250,000
)
 
 
Unsecured senior notes, net (2)
 
(886,831
)
 
 
Mortgage loans (1)
 
(105,000
)
 
 
Acquired below-market leases
 
(185,543
)
 
137
Accounts payable and other accrued liabilities
 
(248,259
)
 
 
Other working capital, net
 
(22,640
)
 
 
Total equity consideration for DFT merger
 
$
6,209,633

 
 

(1)
Debt was paid off in full at closing of the DFT merger.
(2)
Approximately $621 million of fair value debt was paid off prior to September 30, 2017. The remainder was paid off in October 2017.
The following table summarizes the amounts for acquired assets and liabilities recorded at their fair values as of the acquisition date (in thousands):

Investments in real estate
$
270,195

Goodwill
442,975

Tenant relationship value
249,070

Acquired in-place lease value
18,807

Above/below-market lease value, net
4,817

Capital lease and other long-term obligations
(118,923
)
Deferred taxes
(48,037
)
Total purchase price
$
818,904

We acquired the following real estate during the years ended December 31, 2017 and 2016 (excluding real estate already discussed in Note 3):

2017 Acquisitions
Property Type
 
Amount
(in millions)
(2)
Land Parcels (1)
 
$
55.3

Data Centers
 
346.2

Technology Manufacturing
 
14.3

 
 
$
415.8


(1)
Represents currently vacant land which is not included in our operating property count.
(2)
Purchase price in U.S. dollars and excludes capitalized closing costs. Each of these acquisitions was accounted for as an asset acquisition pursuant to the adoption of ASU 2017-01 on January 1, 2017.


The table below reflects the purchase price allocation for the above properties acquired in 2017 (in thousands):

Property Type
 
Land
 
Buildings and Improvements
 
Tenant Improvements
 
Above-Market Leases
 
In-Place Leases
 
Below-Market Leases
 
Acquisition Date Fair Value
Land Parcels
 
$
55,229

 
$

 
$

 
$

 
$

 
$

 
$
55,229

Data Centers
 
20,431

 
275,374

 
1,506

 
21,043

 
28,656

 
(811
)
 
346,199

Technology Manufacturing
 
11,950

 
1,539

 
76

 

 
1,455

 
(684
)
 
14,336

 
 
$
87,610

 
$
276,913

 
$
1,582

 
$
21,043

 
$
30,111

 
$
(1,495
)
 
$
415,764

Weighted average remaining intangible amortization life (in months)
 
 
 
 
 
 
 
65
 
81
 
80
 
 



2016 Acquisitions

Property Type
 
Amount
(in millions)
Land Parcels (1)
 
$
47.6



(1)
Represents currently vacant land which is not included in our operating property count. We completed four acquisitions of land parcels in the three months ended September 30, 2016 in Northern Virginia, Dallas and Chicago. Excludes capitalized closing costs on land acquisitions.
Schedule of Purchase Price Allocation
The table below reflects the purchase price allocation for the above properties acquired in 2017 (in thousands):

Property Type
 
Land
 
Buildings and Improvements
 
Tenant Improvements
 
Above-Market Leases
 
In-Place Leases
 
Below-Market Leases
 
Acquisition Date Fair Value
Land Parcels
 
$
55,229

 
$

 
$

 
$

 
$

 
$

 
$
55,229

Data Centers
 
20,431

 
275,374

 
1,506

 
21,043

 
28,656

 
(811
)
 
346,199

Technology Manufacturing
 
11,950

 
1,539

 
76

 

 
1,455

 
(684
)
 
14,336

 
 
$
87,610

 
$
276,913

 
$
1,582

 
$
21,043

 
$
30,111

 
$
(1,495
)
 
$
415,764

Weighted average remaining intangible amortization life (in months)
 
 
 
 
 
 
 
65
 
81
 
80
 
 
Property Type
 
Amount
(in millions)
Land Parcels (1)
 
$
47.6



(1)
Represents currently vacant land which is not included in our operating property count. We completed four acquisitions of land parcels in the three months ended September 30, 2016 in Northern Virginia, Dallas and Chicago. Excludes capitalized closing costs on land acquisitions.

Schedule of Pro forma Information (unaudited)
The pro forma adjustments primarily relate to transaction expenses, depreciation expense on acquired buildings and improvements, amortization of acquired intangibles, and estimated interest expense related to financing transactions, the proceeds of which were used to fund the repayment of DFT debt in connection with the DFT merger.

Digital Realty Trust, Inc.
 
Pro forma (unaudited)
 
 
(in thousands, except per share data)
 
 
Year Ended December 31,
 
 
2017
 
2016
Total revenue
 
$
2,860,454

 
$
2,670,914

Net income available to common
   stockholders (1)
 
$
51,717

 
$
99,653

Income per share, diluted (2)
 
$
0.25

 
$
0.51


Digital Realty Trust, L.P.
 
Pro forma (unaudited)
 
 
(in thousands, except per unit data)
 
 
Year Ended December 31,
 
 
2017
 
2016
Total revenue
 
$
2,860,454

 
$
2,670,914

Net income available to common
   unitholders (1)
 
$
53,786

 
$
103,639

Income per unit, diluted (2)
 
$
0.25

 
$
0.51


(1)
Pro forma net income available to common stockholders was adjusted to exclude $43.0 million of merger-related costs incurred by the Company during the year ended December 31, 2017 and to include these charges in 2016.
(2)
Adjusted to give effect to the issuance of approximately 43.2 million shares of Digital Realty Trust, Inc. common stock in the DFT merger.

Schedule of Dispositions
We sold the following real estate properties during the years ended December 31, 2017 and 2016:

2017 Dispositions

Location
 
Metro Area
 
Date Sold
 
Gross Proceeds (in millions)
 
Gain on Sale (in millions)
8025 North Interstate 35
 
Austin
 
August 10, 2017
 
$
20.2

 
$
9.6

44874 Moran Road (1)
 
Northern Virginia
 
October 6, 2017
 
34.0

 
15.6

1 Solutions Parkway
 
St. Louis
 
November 28, 2017
 
37.1

 
14.7

 
 
 
 
 
 
$
91.3

 
$
39.9


(1)
The property was held in a consolidated joint venture in which the Company owned a 75% interest. The Company recognized a gain on the sale of approximately $11.7 million, net of noncontrolling interests.

On February 9, 2018, the Company closed on the sale of 34551 Ardenwood Boulevard, a 323,000 square foot technology manufacturing property in Silicon Valley for approximately $73 million. The Company expects to recognize a gain on the sale of approximately $25 million in the first quarter of 2018. The property was classified as held for sale as of December 31, 2017.

On January 25, 2018, the Company closed on the sale of 200 Quannapowitt Parkway, a substantially vacant, 211,000 square foot data center redevelopment project in Boston for $15 million. The Company expects to recognize a loss on the sale of approximately $0.4 million in the first quarter of 2018. The property was classified as held for sale as of December 31, 2017.


2016 Dispositions

Location
 
Metro Area
 
Date Sold
 
Gross Proceeds (in millions)
 
Gain on Sale (in millions)
47700 Kato Road and 1055 Page Avenue
 
Silicon Valley
 
January 21, 2016
 
$
37.5

 
$
1.0

Data center portfolio (1)
 
Various
 
July 11, 2016
 
114.5

 
24.5

114 Rue Ambroise Croizat (2)
 
Paris
 
August 1, 2016
 
212.0

 
144.3

 
 
 
 
 
 
$
364.0

 
$
169.8


(1)
On July 11, 2016, the Company closed on the sale of a four-property data center portfolio, including two in St. Louis and two in Northern Virginia, totaling over 454,000 square feet for approximately $114.5 million. The Company recognized a gain on the sale of approximately $24.5 million in the third quarter of 2016. The four properties were classified as held for sale as of June 30, 2016.
(2)
The Company granted Equinix an option to acquire the Company's facility in 114 rue Ambroise Croizat in Paris. Equinix elected to exercise its option to acquire the Paris property, and on July 2, 2016, the Company entered into an agreement to sell the property to Equinix for approximately €190 million (or approximately $212 million based on the exchange rate as of August 1, 2016). The Paris property sale closed on August 1, 2016. The Company recognized a gain on the sale of approximately $144.3 million in the third quarter of 2016. This property was classified as held for sale as of June 30, 2016.