10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2018

¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Transition Period From              to             .

Commission file number 001-32336 (Digital Realty Trust, Inc.)

000-54023 (Digital Realty Trust, L.P.)

DIGITAL REALTY TRUST, INC.

DIGITAL REALTY TRUST, L.P.

(Exact name of registrant as specified in its charter)

Maryland (Digital Realty Trust, Inc.) Maryland (Digital Realty Trust, L.P.)	26-0081711 20-2402955
(State or other jurisdiction of incorporation or organization)	(IRS employer identification number)
Four Embarcadero Center, Suite 3200 San Francisco, CA	94111
(Address of principal executive offices)	(Zip Code)

(415) 738-6500

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Digital Realty Trust, Inc.	Yes  x      No   ¨
Digital Realty Trust, L.P.	Yes  x      No   ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Digital Realty Trust, Inc.	Yes  x      No   ¨
Digital Realty Trust, L.P.	Yes  x      No   ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Digital Realty Trust, Inc.:

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨ (Do not check if a smaller reporting company)	Smaller reporting company	¨
		Emerging growth company	¨

Digital Realty Trust, L.P.:

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	x  (Do not check if a smaller reporting company)	Smaller reporting company	¨
		Emerging growth company	¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Digital Realty Trust, Inc.	¨
Digital Realty Trust, L.P.	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Digital Realty Trust, Inc.	Yes  ¨   No   x
Digital Realty Trust, L.P.	Yes  ¨   No   x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Digital Realty Trust, Inc.:

Class	Outstanding at May 4, 2018
Common Stock, $.01 par value per share	205,952,755

EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the quarter ended March 31, 2018 of Digital Realty Trust, Inc., a Maryland corporation, and Digital Realty Trust, L.P., a Maryland limited partnership, of which Digital Realty Trust, Inc. is the sole general partner. Unless otherwise indicated or unless the context requires otherwise, all references in this report to “we,” “us,” “our,” “our Company” or “the Company” refer to Digital Realty Trust, Inc. together with its consolidated subsidiaries, including Digital Realty Trust, L.P. Unless otherwise indicated or unless the context requires otherwise, all references to “our Operating Partnership” or “the Operating Partnership” refer to Digital Realty Trust, L.P. together with its consolidated subsidiaries.

Digital Realty Trust, Inc. is a real estate investment trust, or REIT, and the sole general partner of Digital Realty Trust, L.P. As of March 31, 2018, Digital Realty Trust, Inc. owned an approximate 95.9% common general partnership interest in Digital Realty Trust, L.P. The remaining approximate 4.1% of the common limited partnership interests of Digital Realty Trust, L.P. are owned by non-affiliated third parties and certain directors and officers of Digital Realty Trust, Inc. As of March 31, 2018, Digital Realty Trust, Inc. owned all of the preferred limited partnership interests of Digital Realty Trust, L.P. As the sole general partner of Digital Realty Trust, L.P., Digital Realty Trust, Inc. has the full, exclusive and complete responsibility for the Operating Partnership’s day-to-day management and control.

We believe combining the quarterly reports on Form 10-Q of Digital Realty Trust, Inc. and Digital Realty Trust, L.P. into this single report results in the following benefits:

• enhancing investors’ understanding of our Company and our Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;

• eliminating duplicative disclosure and providing a more streamlined and readable presentation since a substantial portion of the disclosure applies to both our Company and our Operating Partnership; and

• creating time and cost efficiencies through the preparation of one combined report instead of two separate reports.

There are a few differences between our Company and our Operating Partnership, which are reflected in the disclosure in this report. We believe it is important to understand the differences between our Company and our Operating Partnership in the context of how we operate as an interrelated consolidated company. Digital Realty Trust, Inc. is a REIT, whose only material asset is its ownership of partnership interests of Digital Realty Trust, L.P. As a result, Digital Realty Trust, Inc. does not conduct business itself, other than acting as the sole general partner of Digital Realty Trust, L.P., issuing public equity from time to time and guaranteeing certain unsecured debt of Digital Realty Trust, L.P. and certain of its subsidiaries and affiliates. Digital Realty Trust, Inc. itself does not issue any indebtedness but guarantees the unsecured debt of Digital Realty Trust, L.P. and certain of its subsidiaries and affiliates, as disclosed in this report. Digital Realty Trust, L.P. holds substantially all the assets of the Company and holds the ownership interests in the Company’s joint ventures. Digital Realty Trust, L.P. conducts the operations of the business and is structured as a partnership with no publicly traded equity. Except for net proceeds from public equity issuances by Digital Realty Trust, Inc., which are generally contributed to Digital Realty Trust, L.P. in exchange for partnership units, Digital Realty Trust, L.P. generates the capital required by the Company’s business through Digital Realty Trust, L.P.’s operations, by Digital Realty Trust, L.P.’s direct or indirect incurrence of indebtedness or through the issuance of partnership units.

The presentation of noncontrolling interests in operating partnership, stockholders’ equity and partners’ capital are the main areas of difference between the condensed consolidated financial statements of Digital Realty Trust, Inc. and those of Digital Realty Trust, L.P. The common limited partnership interests held by the limited partners in Digital Realty Trust, L.P. are presented as limited partners’ capital within partners’ capital in Digital Realty Trust, L.P.’s condensed consolidated financial statements and as noncontrolling interests in operating partnership within equity in Digital Realty Trust, Inc.’s condensed consolidated financial statements. The common and preferred partnership interests held by Digital Realty Trust, Inc. in Digital Realty Trust, L.P. are presented as general partner’s capital within partners’ capital in Digital Realty Trust, L.P.’s condensed consolidated financial statements and as preferred stock, common stock, additional paid-in capital and accumulated dividends in excess of earnings within stockholders’ equity in Digital Realty Trust, Inc.’s condensed consolidated financial statements. The differences in the presentations between stockholders’ equity and partners’ capital result from the differences in the equity issued at the Digital Realty Trust, Inc. and the Digital Realty Trust, L.P. levels.

2

To help investors understand the significant differences between the Company and the Operating Partnership, this report presents the following separate sections for each of the Company and the Operating Partnership:

• Condensed consolidated financial statements;

• the following notes to the condensed consolidated financial statements:

• "Debt of the Company" and "Debt of the Operating Partnership";

• "Income per Share" and "Income per Unit"; and

• "Equity and Accumulated Other Comprehensive Loss, Net" and "Capital and Accumulated Other Comprehensive Loss";

• Part I, Item 2. "Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources of the Parent Company" and "—Liquidity and Capital Resources of the Operating Partnership"; and

• Part II, Item 2. "Unregistered Sales of Equity Securities and Use of Proceeds".

This report also includes separate Part I, Item 4. "Controls and Procedures" sections and separate Exhibit 31 and 32 certifications for each of the Company and the Operating Partnership in order to establish that the Chief Executive Officer and the Chief Financial Officer of each entity during the period covered by this report have made the requisite certifications and that the Company and the Operating Partnership are compliant with Rule 13a-15 or Rule 15d-15 of the Securities Exchange Act of 1934 and 18 U.S.C. §1350.

In order to highlight the differences between the Company and the Operating Partnership, the separate sections in this report for the Company and the Operating Partnership specifically refer to the Company and the Operating Partnership. In the sections that combine disclosure of the Company and the Operating Partnership, this report refers to actions or holdings as being actions or holdings of the Company. Although the Operating Partnership is generally the entity that enters into contracts and joint ventures and holds assets and debt, reference to the Company is appropriate because the business is one enterprise and the Company operates the business through the Operating Partnership.

As general partner with control of the Operating Partnership, Digital Realty Trust, Inc. consolidates the Operating Partnership for financial reporting purposes, and it does not have significant assets other than its investment in the Operating Partnership. Therefore, the assets and liabilities of Digital Realty Trust, Inc. and Digital Realty Trust, L.P. are the same on their respective condensed consolidated financial statements. The separate discussions of Digital Realty Trust, Inc. and Digital Realty Trust, L.P. in this report should be read in conjunction with each other to understand the results of the Company on a consolidated basis and how management operates the Company.

3

DIGITAL REALTY TRUST, INC. AND DIGITAL REALTY TRUST, L.P.

FORM 10-Q

FOR THE QUARTER ENDED MARCH 31, 2018

TABLE OF CONTENTS

		Page  Number
PART I.	FINANCIAL INFORMATION
ITEM 1.	Condensed Consolidated Financial Statements of Digital Realty Trust, Inc.:
	Condensed Consolidated Balance Sheets as of March 31, 2018 (unaudited) and December 31, 2017	5
	Condensed Consolidated Income Statements for the three months ended March 31, 2018 and 2017 (unaudited)	6
	Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2018 and 2017 (unaudited)	7
	Condensed Consolidated Statement of Equity for the three months ended March 31, 2018 (unaudited)	8
	Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2018 and 2017 (unaudited)	9
	Condensed Consolidated Financial Statements of Digital Realty Trust, L.P.:
	Condensed Consolidated Balance Sheets as of March 31, 2018 (unaudited) and December 31, 2017	11
	Condensed Consolidated Income Statements for the three months ended March 31, 2018 and 2017 (unaudited)	12
	Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2018 and 2017 (unaudited)	13
	Condensed Consolidated Statement of Capital for the three months ended March 31, 2018 (unaudited)	14
	Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2018 and 2017 (unaudited)	15
	Notes to Condensed Consolidated Financial Statements of Digital Realty Trust, Inc. and Digital Realty Trust, L.P.	17
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	51
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	76
ITEM 4.	Controls and Procedures (Digital Realty Trust, Inc.)	77
	Controls and Procedures (Digital Realty Trust, L.P.)	77
PART II.	OTHER INFORMATION	79
ITEM 1.	Legal Proceedings	79
ITEM 1A.	Risk Factors	79
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	79
ITEM 3.	Defaults Upon Senior Securities	79
ITEM 4.	Mine Safety Disclosures	79
ITEM 5.	Other Information	79
ITEM 6.	Exhibits	80
	Signatures	81

4

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

	March 31, 2018			December 31, 2017
	(unaudited)
ASSETS
Investments in real estate:
Properties:
Land	$	1,140,537		$	1,136,341
Acquired ground leases	11,516			11,150
Buildings and improvements	15,645,624			15,215,405
Tenant improvements	563,735			553,040
Total investments in properties	17,361,412			16,915,936
Accumulated depreciation and amortization	(3,439,050		)	(3,238,227		)
Net investments in properties	13,922,362			13,677,709
Investments in unconsolidated joint ventures	167,564			163,477
Net investments in real estate	14,089,926			13,841,186
Cash and cash equivalents	22,370			51
Accounts and other receivables, net of allowance for doubtful accounts of $6,906 and $6,737 as of March 31, 2018 and December 31, 2017, respectively	309,328			276,347
Deferred rent	442,887			430,026
Acquired above-market leases, net	165,568			184,375
Goodwill	3,405,110			3,389,595
Acquired in-place lease value, deferred leasing costs and intangibles, net	2,928,566			2,998,806
Restricted cash	7,330			13,130
Assets held for sale	41,707			139,538
Other assets	169,125			131,291
Total assets	$	21,581,917		$	21,404,345
LIABILITIES AND EQUITY
Global revolving credit facility, net	$	952,121		$	550,946
Unsecured term loan, net	1,428,498			1,420,333
Unsecured senior notes, net	6,660,727			6,570,757
Mortgage loans, including premiums, net	106,366			106,582
Accounts payable and other accrued liabilities	1,012,490			980,218
Accrued dividends and distributions	—			199,761
Acquired below-market leases, net	225,674			249,465
Security deposits and prepaid rents	207,859			217,898
Obligations associated with assets held for sale	1,767			5,033
Total liabilities	10,595,502			10,300,993
Redeemable noncontrolling interests – operating partnership	49,871			53,902
Commitments and contingencies
Equity:
Stockholders’ Equity:
Preferred Stock: $0.01 par value per share, 110,000,000 shares authorized; 50,650,000 and 50,650,000 shares issued and outstanding as of March 31, 2018 and December 31, 2017, respectively	1,249,560			1,249,560
Common Stock: $0.01 par value per share, 315,000,000 shares authorized, 205,874,914 and 205,470,300 shares issued and outstanding as of March 31, 2018 and December 31, 2017, respectively	2,045			2,044
Additional paid-in capital	11,283,489			11,261,461
Accumulated dividends in excess of earnings	(2,177,269		)	(2,055,552		)
Accumulated other comprehensive loss, net	(103,974		)	(108,432		)
Total stockholders’ equity	10,253,851			10,349,081
Noncontrolling Interests:
Noncontrolling interests in operating partnership	680,400			698,126
Noncontrolling interests in consolidated joint ventures	2,293			2,243
Total noncontrolling interests	682,693			700,369
Total equity	10,936,544			11,049,450
Total liabilities and equity	$	21,581,917		$	21,404,345

See accompanying notes to the condensed consolidated financial statements.

5

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED INCOME STATEMENTS

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

	Three Months Ended March 31,
	2018			2017
Operating Revenues:
Rental and other services	$	592,298		$	461,351
Tenant reimbursements	150,079			87,288
Fee income	1,133			1,895
Other	858			35
Total operating revenues	744,368			550,569
Operating Expenses:
Rental property operating and maintenance	225,640			169,339
Property taxes	35,263			26,919
Insurance	3,731			2,592
Depreciation and amortization	294,789			176,466
General and administrative	36,523			34,647
Transactions and integration	4,178			3,323
Other	431			—
Total operating expenses	600,555			413,286
Operating income	143,813			137,283
Other Income (Expenses):
Equity in earnings of unconsolidated joint ventures	7,410			5,324
Gain (loss) on sale of properties	39,273			(522		)
Interest and other (expense) income	(42		)	151
Interest expense	(76,985		)	(55,450		)
Tax expense	(3,374		)	(2,223		)
Net income	110,095			84,563
Net income attributable to noncontrolling interests	(3,468		)	(1,025		)
Net income attributable to Digital Realty Trust, Inc.	106,627			83,538
Preferred stock dividends	(20,329		)	(17,393		)
Net income available to common stockholders	$	86,298		$	66,145
Net income per share available to common stockholders:
Basic	$	0.42		$	0.42
Diluted	$	0.42		$	0.41
Weighted average common shares outstanding:
Basic	205,714,173			159,297,027
Diluted	206,507,476			160,421,655

See accompanying notes to the condensed consolidated financial statements.

6

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited, in thousands)

	Three Months Ended March 31,
	2018			2017
Net income	$	110,095		$	84,563
Other comprehensive income (loss):
Foreign currency translation adjustments	(3,743		)	16,578
Increase (decrease) in fair value of interest rate swaps and foreign currency hedges	8,616			(4,364		)
Reclassification to interest expense from interest rate swaps	(235		)	1,030
Comprehensive income	114,733			97,807
Comprehensive income attributable to noncontrolling interests	(3,648		)	(1,204		)
Comprehensive income attributable to Digital Realty Trust, Inc.	$	111,085		$	96,603

See accompanying notes to the condensed consolidated financial statements.

7

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF EQUITY

(unaudited, in thousands, except share data)

	Redeemable Noncontrolling Interests -- Operating Partnership			Preferred Stock		Number of Common Shares		Common Stock			Additional Paid-in Capital			Accumulated Dividends in Excess of Earnings			Accumulated Other Comprehensive Loss, Net			Total Stockholders’ Equity			Noncontrolling Interests in Operating Partnership			Noncontrolling Interests in Consolidated Joint Ventures			Total Noncontrolling Interests			Total Equity
Balance as of December 31, 2017	$	53,902		$	1,249,560	205,470,300		$	2,044		$	11,261,461		$	(2,055,552	)	$	(108,432	)	$	10,349,081		$	698,126		$	2,243		$	700,369		$	11,049,450
Conversion of common units to common stock	—			—		168,367		2			15,199			—			—			15,201			(15,201		)	—			(15,201		)	—
Issuance of unvested restricted stock, net of forfeitures	—			—		251,187		—			—			—			—			—			—			—			—			—
Issuance of common stock, net of offering costs	—			—		—		—			(12		)	—			—			(12		)	—			—			—			(12		)
Shares issued under employee stock purchase plan	—			—		31,893		—			2,509			—			—			2,509			—			—			—			2,509
Shares repurchased and retired to satisfy tax withholding upon vesting	—			—		(46,833	)	(1		)	(4,717		)	—			—			(4,718		)	—			—			—			(4,718		)
Amortization of share-based compensation	—			—		—		—			7,515			—			—			7,515			—			—			—			7,515
Reclassification of vested share-based awards	—			—		—		—			(2,497		)	—			—			(2,497		)	2,497			—			2,497			—
Adjustment to redeemable noncontrolling interests—operating partnership	(4,031		)	—		—		—			4,031			—			—			4,031			—			—			—			4,031
Dividends declared on preferred stock	—			—		—		—			—			(20,329		)	—			(20,329		)	—			—			—			(20,329		)
Dividends and distributions on common stock and common and incentive units	—			—		—		—			—			(208,015		)	—			(208,015		)	(8,682		)	—			(8,682		)	(216,697		)
Distributions to noncontrolling interests in consolidated joint ventures, net of contributions	—			—		—		—			—			—			—			—			—			62			62			62
Net income	—			—		—		—			—			106,627			—			106,627			3,480			(12		)	3,468			110,095
Other comprehensive loss—foreign currency translation adjustments	—			—		—		—			—			—			(3,598		)	(3,598		)	(145		)	—			(145		)	(3,743		)
Other comprehensive income—fair value of interest rate swaps and foreign currency hedges	—			—		—		—			—			—			8,282			8,282			334			—			334			8,616
Other comprehensive loss—reclassification of accumulated other comprehensive income to interest expense	—			—		—		—			—			—			(226		)	(226		)	(9		)	—			(9		)	(235		)
Balance as of March 31, 2018	$	49,871		$	1,249,560	205,874,914		$	2,045		$	11,283,489		$	(2,177,269	)	$	(103,974	)	$	10,253,851		$	680,400		$	2,293		$	682,693		$	10,936,544

See accompanying notes to the condensed consolidated financial statements.

8

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

	Three Months Ended March 31,
	2018			2017
Cash flows from operating activities:
Net income	$	110,095		$	84,563
Adjustments to reconcile net income to net cash provided by operating activities:
(Gain) loss on sale of properties	(39,273		)	522
Equity in earnings of unconsolidated joint ventures	(7,410		)	(5,324		)
Distributions from unconsolidated joint ventures	5,270			4,448
Write-off of net assets due to early lease terminations	431			—
Depreciation and amortization of buildings and improvements, tenant improvements    and acquired ground leases	186,431			131,807
Amortization of acquired in-place lease value and deferred leasing costs	108,358			44,659
Amortization of share-based compensation	5,872			4,064
Non-cash amortization of terminated swaps	301			301
Recovery of doubtful accounts	(494		)	(1,310		)
Amortization of deferred financing costs	3,060			2,443
Amortization of debt discount/premium	851			674
Amortization of acquired above-market leases and acquired below-market leases, net	6,660			(2,026		)
Changes in assets and liabilities:
Accounts and other receivables	(30,250		)	9,455
Deferred rent	(10,454		)	(4,033		)
Deferred leasing costs	(4,613		)	(1,898		)
Other assets	(1,750		)	(13,040		)
Accounts payable and other accrued liabilities	(83,206		)	(38,421		)
Security deposits and prepaid rents	(12,889		)	2,182
Net cash provided by operating activities	236,990			219,066
Cash flows from investing activities:
Acquisitions of real estate	—			(13,585		)
Proceeds from sale of properties, net of sales costs	137,175			—
Excess proceeds from forward contracts	—			51,308
Investments in unconsolidated joint ventures	(81		)	(5,749		)
Prepaid construction costs and other investments	(26,602		)	—
Improvements to investments in real estate	(289,840		)	(254,359		)
Improvement advances to tenants	(11,627		)	(5,073		)
Collection of improvement advances to tenants	13,691			11,890
Net cash used in investing activities	(177,284		)	(215,568		)

See accompanying notes to the condensed consolidated financial statements.

9

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

(unaudited, in thousands)

	Three Months Ended March 31,
	2018			2017
Cash flows from financing activities:
Borrowings on global revolving credit facility	$	579,685		$	715,524
Repayments on global revolving credit facility	(183,467		)	(358,219		)
Repayments on unsecured notes	—			(50,000		)
Principal payments on mortgage loans	(192		)	(132		)
Payment of loan fees and costs	(294		)	(144		)
Capital distributions paid to noncontrolling interests in consolidated joint ventures, net	62			(146		)
Taxes paid related to net settlement of stock-based compensation awards	(4,718		)	—
Proceeds from common and preferred stock offerings, net	(12		)	118
Proceeds from equity plans	2,509			2,606
Payment of dividends to preferred stockholders	(20,329		)	(17,393		)
Payment of dividends to common stockholders and distributions to     noncontrolling interests in operating partnership	(416,458		)	(295,105		)
Net cash used in financing activities	(43,214		)	(2,891		)
Net increase in cash, cash equivalents and restricted cash	16,492			607
Effect of exchange rate changes on cash, cash equivalents and restricted cash	27			2,754
Cash, cash equivalents and restricted cash at beginning of period	13,181			22,036
Cash, cash equivalents and restricted cash at end of period	$	29,700		$	25,397

Supplemental disclosure of cash flow information:
Cash paid for interest, net of amounts capitalized	$	78,728		$	53,819
Cash paid for income taxes	4,272			3,569
Supplementary disclosure of noncash investing and financing activities:
Change in net assets related to foreign currency translation adjustments	$	(3,743	)	$	16,578
Increase (decrease) in accounts payable and other accrued liabilities related to change in fair value of interest rate swaps and foreign currency hedges	8,616			(4,364		)
Acquisition measurement period adjustment to goodwill and accounts payable and other accrued liabilities	—			2,162
Noncontrolling interests in operating partnership converted to shares of common stock	15,201			2,744
Accrual for additions to investments in real estate and tenant improvement advances    included in accounts payable and accrued expenses	177,812			138,162
Addition to leasehold improvements pursuant to capital lease obligation	73,873			—

See accompanying notes to the condensed consolidated financial statements.

10

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except unit data)

	March 31, 2018			December 31, 2017
	(unaudited)
ASSETS
Investments in real estate:
Properties:
Land	$	1,140,537		$	1,136,341
Acquired ground leases	11,516			11,150
Buildings and improvements	15,645,624			15,215,405
Tenant improvements	563,735			553,040
Total investments in properties	17,361,412			16,915,936
Accumulated depreciation and amortization	(3,439,050		)	(3,238,227		)
Net investments in properties	13,922,362			13,677,709
Investments in unconsolidated joint ventures	167,564			163,477
Net investments in real estate	14,089,926			13,841,186
Cash and cash equivalents	22,370			51
Accounts and other receivables, net of allowance for doubtful accounts of $6,906 and $6,737 as of March 31, 2018 and December 31, 2017, respectively	309,328			276,347
Deferred rent	442,887			430,026
Acquired above-market leases, net	165,568			184,375
Goodwill	3,405,110			3,389,595
Acquired in-place lease value, deferred leasing costs and intangibles, net	2,928,566			2,998,806
Restricted cash	7,330			13,130
Assets held for sale	41,707			139,538
Other assets	169,125			131,291
Total assets	$	21,581,917		$	21,404,345
LIABILITIES AND CAPITAL
Global revolving credit facility, net	$	952,121		$	550,946
Unsecured term loan, net	1,428,498			1,420,333
Unsecured senior notes, net	6,660,727			6,570,757
Mortgage loans, including premiums, net	106,366			106,582
Accounts payable and other accrued liabilities	1,012,490			980,218
Accrued dividends and distributions	—			199,761
Acquired below-market leases, net	225,674			249,465
Security deposits and prepaid rents	207,859			217,898
Obligations associated with assets held for sale	1,767			5,033
Total liabilities	10,595,502			10,300,993
Redeemable limited partner common units	49,871			53,902
Commitments and contingencies
Capital:
Partners’ capital:
General Partner:
Preferred units, 50,650,000 and 50,650,000 units issued and outstanding as of March 31, 2018 and December 31, 2017, respectively	1,249,560			1,249,560
Common units, 205,874,914 and 205,470,300 units issued and outstanding as of March 31, 2018 and December 31, 2017, respectively	9,108,265			9,207,953
Limited Partners, 8,736,488 and 8,489,095 units issued and outstanding as of March 31, 2018 and December 31, 2017, respectively	684,673			702,579
Accumulated other comprehensive loss	(108,247		)	(112,885		)
Total partners’ capital	10,934,251			11,047,207
Noncontrolling interests in consolidated joint ventures	2,293			2,243
Total capital	10,936,544			11,049,450
Total liabilities and capital	$	21,581,917		$	21,404,345

See accompanying notes to the condensed consolidated financial statements.

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DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED INCOME STATEMENTS

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

	Three Months Ended March 31,
	2018			2017
Operating Revenues:
Rental and other services	$	592,298		$	461,351
Tenant reimbursements	150,079			87,288
Fee income	1,133			1,895
Other	858			35
Total operating revenues	744,368			550,569
Operating Expenses:
Rental property operating and maintenance	225,640			169,339
Property taxes	35,263			26,919
Insurance	3,731			2,592
Depreciation and amortization	294,789			176,466
General and administrative	36,523			34,647
Transactions and integration	4,178			3,323
Other	431			—
Total operating expenses	600,555			413,286
Operating income	143,813			137,283
Other Income (Expenses):
Equity in earnings of unconsolidated joint ventures	7,410			5,324
Gain (loss) on sale of properties	39,273			(522		)
Interest and other (expense) income	(42		)	151
Interest expense	(76,985		)	(55,450		)
Tax expense	(3,374		)	(2,223		)
Net income	110,095			84,563
Net (loss) income attributable to noncontrolling interests in consolidated joint ventures	12			(121		)
Net income attributable to Digital Realty Trust, L.P.	110,107			84,442
Preferred units distributions	(20,329		)	(17,393		)
Net income available to common unitholders	$	89,778		$	67,049
Net income per unit available to common unitholders:
Basic	$	0.42		$	0.42
Diluted	$	0.42		$	0.41
Weighted average common units outstanding:
Basic	214,009,460			161,474,901
Diluted	214,802,763			162,599,529

See accompanying notes to the condensed consolidated financial statements.

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DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited, in thousands)

	Three Months Ended March 31,
	2018			2017
Net income	$	110,095		$	84,563
Other comprehensive income (loss):
Foreign currency translation adjustments	(3,743		)	16,578
(Decrease) increase in fair value of interest rate swaps and foreign currency hedges	8,616			(4,364		)
Reclassification to interest expense from interest rate swaps	(235		)	1,030
Comprehensive income	$	114,733		$	97,807
Comprehensive loss (income) attributable to noncontrolling interests in consolidated joint ventures	12			(121		)
Comprehensive income attributable to Digital Realty Trust, L.P.	$	114,745		$	97,686

See accompanying notes to the condensed consolidated financial statements.

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DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CAPITAL

(unaudited, in thousands, except unit data)

	Redeemable Limited Partner Common Units			General Partner									Limited Partners					Accumulated Other Comprehensive Loss			Noncontrolling Interests in Consolidated Joint Ventures			Total Capital
				Preferred Units				Common Units					Common Units
				Units	Amount			Units		Amount			Units		Amount
Balance as of December 31, 2017	$	53,902		50,650,000	$	1,249,560		205,470,300		$	9,207,953		8,489,095		$	702,579		$	(112,885	)	$	2,243		$	11,049,450
Conversion of limited partner common units to general partner common units	—			—	—			168,367		15,201			(168,367	)	(15,201		)	—			—			—
Issuance of unvested restricted common units	—			—	—			251,187		—			—		—			—			—			—
Issuance of common units, net of offering costs	—			—	—			—		(12		)	—		—			—			—			(12		)
Issuance of common units, net of forfeitures	—			—	—			—		—			415,760		—			—			—			—
Units issued in connection with employee stock purchase plan	—			—	—			31,893		2,509			—		—			—			—			2,509
Units repurchased and retired to satisfy tax withholding upon vesting	—			—	—			(46,833	)	(4,718		)	—		—			—			—			(4,718		)
Amortization of share-based compensation	—			—	—			—		7,515			—		—			—			—			7,515
Reclassification of vested share-based awards	—			—	—			—		(2,497		)	—		2,497			—			—			—
Adjustment to redeemable partnership units	(4,031		)	—	—			—		4,031			—		—			—			—			4,031
Distributions	—			—	(20,329		)	—		(208,015		)	—		(8,682		)	—			—			(237,026		)
Distributions to noncontrolling interests in consolidated joint ventures, net of contributions	—			—	—			—		—			—		—			—			62			62
Net income	—			—	20,329			—		86,298			—		3,480			—			(12		)	110,095
Other comprehensive loss—foreign currency translation adjustments	—			—	—			—		—			—		—			(3,743		)	—			(3,743		)
Other comprehensive income—fair value of interest rate swaps and foreign currency hedges	—			—	—			—		—			—		—			8,616			—			8,616
Other comprehensive loss—reclassification of accumulated other comprehensive income to interest expense	—			—	—			—		—			—		—			(235		)	—			(235		)
Balance as of March 31, 2018	$	49,871		50,650,000	$	1,249,560		205,874,914		$	9,108,265		8,736,488		$	684,673		$	(108,247	)	$	2,293		$	10,936,544

See accompanying notes to the condensed consolidated financial statements.

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DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

	Three Months Ended March 31,
	2018			2017
Cash flows from operating activities:
Net income	$	110,095		$	84,563
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on sale of properties	(39,273		)	522
Equity in earnings of unconsolidated joint ventures	(7,410		)	(5,324		)
Distributions from unconsolidated joint ventures	5,270			4,448
Write-off of net assets due to early lease terminations	431			—
Depreciation and amortization of buildings and improvements, tenant improvements    and acquired ground leases	186,431			131,807
Amortization of debt discount/premium	851			674
Amortization of acquired in-place lease value and deferred leasing costs	108,358			44,659
Amortization of share-based compensation	5,872			4,064
Non-cash amortization of terminated swaps	301			301
Recovery of doubtful accounts	(494		)	(1,310		)
Amortization of deferred financing costs	3,060			2,443
Amortization of acquired above-market leases and acquired below-market leases, net	6,660			(2,026		)
Changes in assets and liabilities:
Accounts and other receivables	(30,250		)	9,455
Deferred rent	(10,454		)	(4,033		)
Deferred leasing costs	(4,613		)	(1,898		)
Other assets	(1,750		)	(13,040		)
Accounts payable and other accrued liabilities	(83,206		)	(38,421		)
Security deposits and prepaid rents	(12,889		)	2,182
Net cash provided by operating activities	236,990			219,066
Cash flows from investing activities:
Acquisitions of real estate	—			(13,585		)
Proceeds from sale of properties, net of sales costs	137,175			—
Excess proceeds from forward contracts	—			51,308
Investments in unconsolidated joint ventures	(81		)	(5,749		)
Prepaid construction costs and other investments	(26,602		)	—
Improvements to investments in real estate	(289,840		)	(254,359		)
Improvement advances to tenants	(11,627		)	(5,073		)
Collection of improvement advances to tenants	13,691			11,890
Net cash used in investing activities	(177,284		)	(215,568		)

See accompanying notes to the condensed consolidated financial statements.

15

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

(unaudited, in thousands)

	Three Months Ended March 31,
	2018			2017
Cash flows from financing activities:
Borrowings on global revolving credit facility	$	579,685		$	715,524
Repayments on global revolving credit facility	(183,467		)	(358,219		)
Repayments on unsecured notes	—			(50,000		)
Borrowings on mortgage loans	(192		)	(132		)
Payment of loan fees and costs	(294		)	(144		)
Capital distributions paid to noncontrolling interests in consolidated joint ventures, net	62			(146		)
Taxes paid related to net settlement of stock-based compensation awards	(4,718		)	—
General partner contributions, net	2,497			2,724
Payment of distributions to preferred unitholders	(20,329		)	(17,393		)
Payment of distributions to common unitholders	(416,458		)	(295,105		)
Net cash used in financing activities	(43,214		)	(2,891		)
Net increase in cash, cash equivalents and restricted cash	16,492			607
Effect of exchange rate changes on cash, cash equivalents and restricted cash	27			2,754
Cash, cash equivalents and restricted cash at beginning of period	13,181			22,036
Cash, cash equivalents and restricted cash at end of period	$	29,700		$	25,397

Supplemental disclosure of cash flow information:
Cash paid for interest, net of amounts capitalized	$	78,728		$	53,819
Cash paid for income taxes	4,272			3,569
Supplementary disclosure of noncash investing and financing activities:
Change in net assets related to foreign currency translation adjustments	$	(3,743	)	$	16,578
Increase (decrease) in accounts payable and other accrued liabilities related to change in fair value of interest rate swaps and foreign currency hedges	8,616			(4,364		)
Acquisition measurement period adjustment to goodwill and accounts payable and other accrued liabilities	—			2,162
Accrual for additions to investments in real estate and tenant improvement advances    included in accounts payable and accrued expenses	177,812			138,162
Addition to leasehold improvements pursuant to capital lease obligation	73,873			—

See accompanying notes to the condensed consolidated financial statements.

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DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2018 and 2017

1. Organization and Description of Business

Digital Realty Trust, Inc. through its controlling interest in Digital Realty Trust, L.P. (the Operating Partnership) and the subsidiaries of the Operating Partnership (collectively, we, our, us or the Company) is a leading global provider of data center, colocation and interconnection solutions for customers across a variety of industry verticals ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare, and consumer products. The Operating Partnership, a Maryland limited partnership, is the entity through which Digital Realty Trust, Inc., a Maryland corporation, conducts its business of owning, acquiring, developing and operating data centers.  Digital Realty Trust, Inc. operates as a REIT for federal income tax purposes. A summary of our data center portfolio as of March 31, 2018 and December 31, 2017 is as follows:

	Data Centers
	As of March 31, 2018				As of December 31, 2017
Region	Operating	Held for Sale	Unconsolidated Joint Ventures	Total	Operating	Held for Sale	Unconsolidated Joint Ventures	Total
United States	133	4	14	151	131	7	14	152
Europe	37	—	—	37	38	—	—	38
Asia	3	—	4	7	3	—	4	7
Australia	5	—	—	5	5	—	—	5
Canada	3	—	—	3	3	—	—	3
Total	181	4	18	203	180	7	18	205

We are diversified in major metropolitan areas where data center and technology customers are concentrated, including the Atlanta, Boston, Chicago, Dallas, Los Angeles, New York, Northern Virginia, Phoenix, San Francisco, Seattle, Silicon Valley and Toronto metropolitan areas in North America, the Amsterdam, Dublin, Frankfurt, London and Paris metropolitan areas in Europe and the Hong Kong, Melbourne, Osaka, Singapore, Sydney, and Tokyo metropolitan areas in the Asia Pacific region. The portfolio consists of data centers, Internet gateway facilities and office and other non-data center space.

The Operating Partnership was formed on July 21, 2004 in anticipation of Digital Realty Trust, Inc.’s initial public offering (IPO) on November 3, 2004 and commenced operations on that date. As of March 31, 2018, Digital Realty Trust, Inc. owns a 95.9% common interest and a 100.0% preferred interest in the Operating Partnership. As of December 31, 2017, Digital Realty Trust, Inc. owned a 96.0% common interest and a 100.0% preferred interest in the Operating Partnership. As sole general partner of the Operating Partnership, Digital Realty Trust, Inc. has the full, exclusive and complete responsibility for the Operating Partnership’s day-to-day management and control. The limited partners of the Operating Partnership do not have rights to replace Digital Realty Trust, Inc. as the general partner nor do they have participating rights, although they do have certain protective rights.

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DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

2. Summary of Significant Accounting Policies

(a) Principles of Consolidation and Basis of Presentation

The accompanying interim condensed consolidated financial statements include all of the accounts of Digital Realty Trust, Inc., the Operating Partnership and the subsidiaries of the Operating Partnership. Intercompany balances and transactions have been eliminated.

The accompanying interim condensed consolidated financial statements are unaudited, but have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and in compliance with the rules and regulations of the United States Securities and Exchange Commission. Accordingly, they do not include all of the disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments necessary for a fair presentation have been included. All such adjustments are considered to be of a normal recurring nature, except as otherwise indicated. The results of operations for the interim periods are not necessarily indicative of the results to be obtained for the full fiscal year. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our annual report on Form 10-K for the year ended December 31, 2017.

The notes to the condensed consolidated financial statements of Digital Realty Trust, Inc. and the Operating Partnership have been combined to provide the following benefits:

• enhancing investors’ understanding of the Company and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;

• eliminating duplicative disclosure and providing a more streamlined and readable presentation since a substantial portion of the disclosure applies to both the Company and the Operating Partnership; and

• creating time and cost efficiencies through the preparation of one set of notes instead of two separate sets of notes.

There are a few differences between the Company and the Operating Partnership, which are reflected in these condensed consolidated financial statements. We believe it is important to understand the differences between the Company and the Operating Partnership in the context of how we operate as an interrelated consolidated company. Digital Realty Trust, Inc.’s only material asset is its ownership of partnership interests of the Operating Partnership. As a result, Digital Realty Trust, Inc. generally does not conduct business itself, other than acting as the sole general partner of the Operating Partnership, issuing public securities from time to time and guaranteeing certain unsecured debt of the Operating Partnership and certain of its subsidiaries and affiliates. Digital Realty Trust, Inc. itself has not issued any indebtedness but guarantees the unsecured debt of the Operating Partnership and certain of its subsidiaries and affiliates, as disclosed in these notes.

The Operating Partnership holds substantially all the assets of the Company and holds the ownership interests in the Company’s joint ventures. The Operating Partnership conducts the operations of the business and is structured as a partnership with no publicly traded equity. Except for net proceeds from public equity issuances by Digital Realty Trust, Inc., which are generally contributed to the Operating Partnership in exchange for partnership units, the Operating Partnership generally generates the capital required by the Company’s business primarily through the Operating Partnership’s operations, by the Operating Partnership’s or its affiliates' direct or indirect incurrence of indebtedness or through the issuance of partnership units.

The presentation of noncontrolling interests in operating partnership, stockholders’ equity and partners’ capital are the main areas of difference between the condensed consolidated financial statements of Digital Realty Trust, Inc. and those of the Operating Partnership. The common limited partnership interests held by the limited partners in the Operating Partnership are presented as limited partners’ capital within partners’ capital in the Operating Partnership’s condensed consolidated financial statements and as noncontrolling interests in operating partnership within equity in Digital Realty Trust, Inc.’s condensed consolidated financial statements. The common and preferred partnership interests held by Digital Realty Trust, Inc. in the Operating Partnership are presented as general partner’s capital within partners’ capital in the Operating Partnership’s condensed consolidated financial statements and as preferred stock, common stock, additional paid-in capital and accumulated dividends in excess of earnings within stockholders’ equity in Digital Realty Trust, Inc.’s condensed consolidated financial statements. The differences in the presentations between stockholders’ equity and partners’ capital result from the differences in the equity issued at the Digital Realty Trust, Inc. and the Operating Partnership levels.

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DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

To help investors understand the significant differences between the Company and the Operating Partnership, these consolidated financial statements present the following separate sections for each of the Company and the Operating Partnership:

• condensed consolidated face financial statements; and

• the following notes to the condensed consolidated financial statements:

• "Debt of the Company" and "Debt of the Operating Partnership";

• "Income per Share" and "Income per Unit"; and

• "Equity and Accumulated Other Comprehensive Loss, Net of the Company" and "Capital and Accumulated Other Comprehensive Loss of the Operating Partnership".

In the sections that combine disclosure of Digital Realty Trust, Inc. and the Operating Partnership, these notes refer to actions or holdings as being actions or holdings of the Company. Although the Operating Partnership is generally the entity that enters into contracts and joint ventures and holds assets and debt, reference to the Company is appropriate because the business is one enterprise and the Company generally operates the business through the Operating Partnership.

(b) Cash Equivalents

For the purpose of the condensed consolidated statements of cash flows, we consider short-term investments with original maturities of 90 days or less to be cash equivalents. As of March 31, 2018, cash equivalents consist of investments in money market instruments.

(c) Investments in Unconsolidated Joint Ventures

The Company’s investments in unconsolidated joint ventures are accounted for using the equity method, whereby our investment is increased for capital contributed and our share of the joint venture's net income and decreased by distributions we receive and our share of any losses of the joint ventures. We do not record losses of the joint ventures in excess of our investment balances unless we are liable for the obligations of the joint venture or are otherwise committed to provide financial support to the joint venture. Likewise, and as long as we have no explicit or implicit obligations to the joint venture, we will suspend equity method accounting to the extent that cash distributions exceed our investment balances until those unrecorded earnings exceed the excess distributions previously recognized in income. In this case, we will apply cost accounting concepts which tie income recognition to the receipt of cash.  Cost basis accounting concepts will apply until earnings exceed the excess distributions previously recognized in income.

We amortize the difference between the cost of our investments in the joint ventures and the book value of the underlying equity into income on a straight-line basis consistent with the lives of the underlying assets. The amortization of this difference was immaterial for the three months ended March 31, 2018 and 2017, respectively.

(d) Capitalization of Costs

Direct and indirect project costs that are clearly associated with the development of properties are capitalized as incurred. Project costs include all costs directly associated with the development of a property, including construction costs, interest, property taxes, insurance, legal fees and costs of personnel working on the project. Indirect costs that do not clearly relate to the projects under development are not capitalized and are charged to expense as incurred.

Capitalization of costs begins when the activities necessary to get the development project ready for its intended use begins, which include costs incurred before the beginning of construction. Capitalization of costs ceases when the development project is substantially complete and ready for its intended use. Determining when a development project commences and when it is substantially complete and ready for its intended use involves a degree of judgment. We generally consider a development project to be substantially complete and ready for its intended use upon receipt of a certificate of occupancy. If and when development of a property is suspended pursuant to a formal change in the planned use of the property, we will evaluate whether the accumulated costs exceed the estimated value of the project and write off the amount of any such excess accumulated costs. For a development project that is suspended for reasons other than a formal change in the planned use of such property, the accumulated project costs are evaluated for impairment consistent with our impairment policies for long-lived assets. Capitalized costs are allocated to the specific components of a project that are benefited.

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DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

During the three months ended March 31, 2018 and 2017, we capitalized interest of approximately $7.4 million and $4.6 million, respectively. We capitalized amounts relating to compensation and other overhead expense of employees direct and incremental to construction and successful leasing activities of approximately $18.3 million and $18.7 million during the three months ended March 31, 2018 and 2017, respectively. In addition to capitalized cash compensation, approximately $2.3 million and $3.2 million of capitalized costs primarily related to external leasing commissions are included in improvements to and advances for investments in real estate in cash flows from investing activities in the condensed consolidated statements of cash flows for the three months ended March 31, 2018 and 2017, respectively.

(e) Goodwill

Goodwill represents the excess of the purchase price over the fair value of net tangible and intangible assets acquired and tangible and intangible liabilities assumed in a business combination. Goodwill is not amortized.  We perform an annual impairment test for goodwill and between annual tests, we evaluate goodwill for impairment whenever events or changes in circumstances occur that would more likely than not reduce the fair value of a reporting unit below its carrying value.  In our impairment tests of goodwill, we first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If based on this assessment, we determine that the fair value of the reporting unit is not less than its carrying value, then performing the additional two-step impairment test is unnecessary. If our qualitative

assessment indicates that goodwill impairment is more likely than not, we perform a two-step impairment test. We test goodwill for impairment under the two-step impairment test by first comparing the book value of net assets including goodwill to the fair value of the reporting unit. If the fair value is determined to be less than the book value of the net assets, including goodwill, a second step is performed to compute the amount of impairment as the difference between the implied fair value of goodwill and its carrying value. We estimate the fair value of the reporting units using discounted cash flows. If the carrying value of goodwill exceeds its implied fair value, an impairment charge is recognized. We have not recognized any goodwill impairments since our inception. Since some of the goodwill is denominated in foreign currencies, changes to the goodwill balance occur over time due to changes in foreign exchange rates.

The following is a summary of goodwill activity for the three months ended March 31, 2018 (in thousands):

	Balance as of December 31, 2017		Impact of Change in Foreign Exchange Rates		Balance as of March 31, 2018
Merger / Portfolio Acquisition
Telx Acquisition	$	330,845	$	—	$	330,845
European Portfolio Acquisition	466,604		15,515		482,119
DuPont Fabros Technology Merger	2,592,146		—		2,592,146
Total	$	3,389,595	$	15,515	$	3,405,110

(f) Share-Based Compensation

The Company measures all share-based compensation awards at fair value on the date they are granted to employees and directors, and recognizes compensation cost, net of forfeitures, over the requisite service period for awards with only a service condition. The estimated fair value of the long-term incentive units and Class D units (discussed in Note 13) granted by us is being amortized on a straight-line basis over the expected service period.

The fair value of share-based compensation awards that contain a market condition is measured using a Monte Carlo simulation method and not adjusted based on actual achievement of the market condition.

20

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

(g) Assets and Liabilities Measured at Fair Value

Fair value under U.S. GAAP is a market-based measurement, not an entity-specific measurement. Therefore, our fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair-value measurements, we use a fair-value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).

Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or


liability which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair-value measurement is based on inputs from different levels of the fair-value hierarchy, the lowest level input that is significant would be used to determine the fair-value measurement in its entirety. Our assessment of the significance of a particular input to the fair-value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

(h) Derivative Instruments

Derivative financial instruments are employed to manage risks, including foreign currency and interest rate exposures and are not used for trading or speculative purposes. As part of the Company’s risk management program, a variety of financial instruments, such as interest rate swaps and foreign exchange contracts, may be used to mitigate interest rate exposure and foreign currency exposure. The Company recognizes all derivative instruments in the balance sheet at fair value.

Changes in the fair value of derivatives are recognized periodically either in earnings or in stockholders’ equity as a component of accumulated other comprehensive income (loss), depending on whether the derivative financial instrument is undesignated or qualifies for hedge accounting, and if so, whether it represents a fair value, cash flow, or net investment hedge. Gains and losses on derivatives designated as cash flow hedges, to the extent they are included in the assessment of effectiveness, are recorded in other comprehensive income (loss) and subsequently reclassified to earnings to offset the impact of the hedged items when they occur. In the event it becomes probable the forecasted transaction to which a cash flow hedge relates will not occur, the derivative would be terminated and the amount in other comprehensive income (loss) would be recognized in earnings. Changes in the fair value of derivatives that are designated and qualify as a hedge of the net investment in foreign operations, to the extent they are included in the assessment of effectiveness, are reported in other comprehensive income (loss) and are deferred until disposal of the underlying assets. Gains and losses representing components excluded from the assessment of effectiveness for cash flow and fair value hedges are recognized in earnings on a straight-line basis in the same caption as the hedged item over the term of the hedge. Gains and losses representing components excluded from the assessment of effectiveness for net investment hedges are recognized in earnings on a straight-line basis over the term of the hedge.

The net interest paid or received on interest rate swaps is recognized as interest expense. Gains and losses resulting from the early termination of interest rate swap agreements are deferred and amortized as adjustments to interest expense over the remaining period of the debt originally covered by the terminated swap.

See Note 14 for further discussion on derivative instruments.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

(i) Income Taxes

Digital Realty Trust, Inc. has elected to be treated as a real estate investment trust (a “REIT”) for federal income tax purposes. As a REIT, Digital Realty Trust, Inc. generally is not required to pay federal corporate income tax to the extent taxable income is currently distributed to its stockholders. If Digital Realty Trust, Inc. fails to qualify as a REIT in any taxable year, it will be subject to federal income tax (including any applicable alternative minimum tax for taxable years prior to 2018) on its taxable income.

The Company is subject to foreign, state and local income taxes in the jurisdictions in which it conducts business. The Company’s taxable REIT subsidiaries are subject to federal, state and foreign income taxes to the extent there is taxable income. Accordingly, the Company recognizes current and deferred income taxes for its taxable REIT subsidiaries, including federal, state and non-U.S. jurisdictions, as appropriate.

We assess our significant tax positions in accordance with U.S. GAAP for all open tax years and determine whether we have any material unrecognized liabilities from uncertain tax benefits. If a tax position is not considered “more-likely-than-not” to be sustained solely on its technical merits, no benefits of the tax position are to be recognized (for financial statement purposes). As of March 31, 2018 and December 31, 2017, we had no assets or liabilities for uncertain tax positions. We classify interest and penalties from significant uncertain tax positions as interest expense and operating expense, respectively, in our condensed consolidated income statements. For the three months ended March 31, 2018 and 2017, we had no such interest or penalties. The tax year 2014 and thereafter remain open to examination by the major taxing jurisdictions with which the Company files tax returns.

See Note 10 for further discussion on income taxes.

(j) Presentation of Transactional-based Taxes

We account for transactional-based taxes, such as value added tax, or VAT, for our international properties on a net basis.

(k) Redeemable Noncontrolling Interests

Redeemable noncontrolling interests include amounts related to partnership units issued by consolidated subsidiaries of the Company in which redemption for equity is outside the control of the Company.  Partnership units which are determined to be contingently redeemable for cash under the Financial Accounting Standards Board’s "Distinguishing Liabilities from Equity" guidance are classified as redeemable noncontrolling interests and presented in the mezzanine section between total liabilities and stockholder’s equity on the Company’s condensed consolidated balance sheets. The amounts of consolidated net income attributable to the Company and to the noncontrolling interests are presented on the Company’s condensed consolidated income statements.

(l) Revenue Recognition

The majority of our revenue is derived from lease arrangements, which we account for in accordance with “Leases (Topic 840)”. We account for the non-lease components within our lease arrangements, as well as other sources of revenue, in accordance with “Revenue from Contracts with Customers (Topic 606)”. Revenue recognized as a result of applying Topic 840 was 97% and Topic 606 was 3% of total operating revenue for the quarter ended March 31, 2018.

Our leases are classified as operating leases and minimum rents are recognized on a straight-line basis over the terms of the leases, which may span multiple years. The excess of rents recognized over amounts contractually due pursuant to the underlying leases is included in deferred rent in the accompanying condensed consolidated balance sheets and contractually due but unpaid rents are included in accounts and other receivables.

Tenant reimbursements for real estate taxes, common area maintenance, and other recoverable costs under our leases are recognized in the period that the expenses are incurred. Lease termination fees are recognized over the remaining term of the lease, effective as of the date the lease modification is finalized, assuming collection is not considered doubtful. As discussed above, we recognize amortization of the value of acquired above or below-market tenant leases as a reduction of rental revenue in the case of above-market leases or an increase to rental revenue in the case of below-market leases.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

Interconnection services are included in rental and other services on the condensed consolidated income statements and are generally provided on a month-to-month, one-year or multi-year term. Interconnection services include port and cross-connect services. Port services are typically sold on a one-year or multi-year term and revenue is recognized on a recurring monthly basis (straight-line). The Company bills customers on a monthly basis and recognizes the revenue over the period the service is provided. Revenue for cross-connect installations is generally recognized in the period the cross-connect is installed. Interconnection services that are not specific to a particular space are accounted for under Topic 606 and have terms that are generally one year or less.

Occasionally, customers engage the Company for certain services. The nature of these services historically involves property management and construction management. The proper revenue recognition of these services can be different, depending on whether the arrangements are service revenue or contractor type revenue.

Service revenues are typically recognized on an equal monthly basis based on the minimum fee to be earned. The monthly amounts could be adjusted depending on if certain performance milestones are met.

Fee income arises primarily from contractual management agreements with entities in which we have a noncontrolling interest. The management fees are recognized as earned under the respective agreements. Management and other fee income related to partially owned noncontrolled entities are recognized to the extent attributable to the unaffiliated interest.

We make subjective estimates as to when our revenue is earned and the collectability of our accounts receivable related to minimum rent, deferred rent, expense reimbursements, lease termination fees and other income. We specifically analyze accounts receivable and historical bad debts, customer concentrations, customer creditworthiness and current economic trends when evaluating the adequacy of the allowance for bad debts. These estimates have a direct impact on our net revenue because a higher bad debt allowance would result in lower net revenue, and recognizing rental revenue as earned in one period versus another would result in higher or lower net revenue for a particular period.

(m) Transaction and Integration Expense

Transaction and integration expense includes business combination expenses, other business development expenses and other expenses to integrate newly acquired investments, which are expensed as incurred. Transaction expenses include closing costs, broker commissions and other professional fees, including legal and accounting fees related to business combinations or acquisitions that were not consummated. Integration costs include transition costs associated with organizational restructuring (such as severance and retention payments and recruiting expenses), third-party consulting expenses directly related to the integration of acquired companies (in areas such as cost savings and synergy realization, technology and systems work), and internal costs such as training, travel and labor, reflecting time spent by Company personnel on integration activities and projects. Recurring costs are recorded in general and administrative expense. 

(n) Gains on Sale of Properties

As of January 1, 2018, we began accounting for the sale of real estate properties under Financial Accounting Standards Board, or FASB, Accounting Standards Update, or ASU, No. 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20), which provides for revenue recognition based on transfer of ownership. All properties were non-financial real estate assets and thus not businesses which were sold to noncustomers with no performance obligations subsequent to transfer of ownership. During the three months ended March 31, 2018, the Company sold real estate properties for gross proceeds of $139.3 million, and a recorded net gain of $39.4 million.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

(o) Management’s Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates made. On an on-going basis, we evaluate our estimates, including those related to the valuation of our real estate properties, tenant relationship value, goodwill, contingent consideration, accounts receivable and deferred rent receivable, performance-based equity compensation plans and the completeness of accrued liabilities. We base our estimates on historical experience, current market conditions, and various other assumptions that are believed to be reasonable under the circumstances. Actual results may vary from those estimates and those estimates could vary under different assumptions or conditions.

(p) Segment and Geographic Information

All of our properties generate similar revenues and expenses related to tenant rent and services and reimbursements and operating expenses. The sale and delivery of our products is consistent across all properties and although services are provided to a wide range of customers, the types of real estate services provided to them are standardized throughout the portfolio. As such, the properties in our portfolio have similar economic characteristics and the nature of the products and services provided to our customers and the method to distribute such services are consistent throughout the portfolio. In addition, the chief operating decision makers evaluate operating performance and make resource allocation decisions for the portfolio as a whole, rather than by property type or revenue stream. Consequently, our properties qualify for aggregation into one reporting segment.

Operating revenues from properties in the United States were $603.5 million and $429.1 million and outside the United States were $140.9 million and $121.4 million for the three months ended March 31, 2018 and 2017, respectively. We had investments in real estate located in the United States of $10.6 billion and $10.5 billion, and outside the United States of $3.3 billion and $3.1 billion, as of March 31, 2018 and December 31, 2017, respectively.

Operating revenues from properties located in the United Kingdom were $75.2 million and $65.2 million, or 10.1% and 11.8% of total operating revenues, for the three months ended March 31, 2018 and 2017, respectively. No other foreign country comprised more than 10% of total operating revenues for each of these periods. We had investments in real estate located in the United Kingdom of $1.8 billion and $1.7 billion, or 12.8% and 12.1% of total long-lived assets, as of March 31, 2018 and December 31, 2017, respectively. No other foreign country comprised more than 10% of total long-lived assets as of March 31, 2018 and December 31, 2017.

(q) New Accounting Pronouncements

New Accounting Standards Adopted

In August 2017, the FASB issued ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities". The new standard amends the hedge accounting recognition and presentation requirements in Accounting Standards Codification, or ASC, 815. As permitted by ASU 2017-12, the Company early adopted this standard in the first quarter of 2018 on a prospective basis. Refer to Note 2(h), Derivative Instruments, for our policy related to the adoption of this standard.

In January 2016, the FASB issued ASU No. 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities". The guidance requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and to record changes in instruments specific credit risk for financial liabilities measured under the fair value option in other comprehensive income. The principal effect of ASU 2016-01 on our condensed consolidated financial statements is that, prior to adoption of ASU 2016-01, changes in the fair values of investments in equity securities with readily determinable fair values or redemption values were recognized in other comprehensive income until realized, while under ASU 2016-01 all changes in the fair values of these equity securities are recognized in current earnings. The update is effective for fiscal years beginning after December 15, 2017, and for interim periods therein. We adopted this standard in the first quarter of 2018 and the adoption did not have a material impact on our condensed consolidated financial statements. 

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)", and since that date has issued several additional ASUs intended to clarify certain aspects of ASU 2014-09 and to provide for certain practical expedients entities may elect upon adoption. Collectively, these ASUs outline a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers. We adopted Topic 606 in the first quarter of 2018 using the modified retrospective transition method and applied Topic 606 to those contracts that were not completed as of January 1, 2018. The results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be presented under Topic 605. Our financial statements did not recognize a material effect from the cumulative impact of adopting Topic 606 as the new accounting standard does not impact lessor accounting. Refer to Note 2(l), Revenue Recognition, for the updated policy related to the adoption of this standard.

New Accounting Standards Issued but not yet Adopted

In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)", which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Accounting for leases with a term of 12 months or less will be similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases.

ASU 2016-02 is expected to impact the Company’s consolidated financial statements for leases where the Company is a lessee, primarily for the Company’s data center operating leases, ground leases and administrative office leases, and the Company will be required to record a lease liability and a right of use asset on its condensed consolidated balance sheet at fair value upon adoption. ASU 2016-02 also limits the capitalization of leasing costs to initial direct costs, which will likely result in a reduction to our capitalized leasing costs and an increase in expenses, though the amount of such change is highly dependent upon the leasing compensation structures in place at the time of adoption.

ASU 2016-02 supersedes the previous leases standard, Leases (Topic 840). The standard is effective on January 1, 2019, with early adoption permitted. The new leasing standard requires modified retrospective transition. In March 2018, the FASB affirmed a proposed ASU that would allow entities to elect a simplified transition approach which would require applying the provisions of the new guidance at the effective date as opposed to the earliest period presented under the modified retrospective approach.

A set of practical expedients for implementation, which must be elected as a package and for all leases, may also be elected. These practical expedients include relief from re-assessing lease classification at the adoption date for expired or existing leases, although a right-of-use asset and lease liability would still be recorded for such leases. In March 2018, the FASB affirmed a proposed ASU that would include creating a practical expedient that would provide lessors an option not to separate lease and non-lease components when certain criteria are met and instead account for those components as a single component.

We will be subject to the requirements of Topic 842 as both a lessor and a lessee. We are currently assessing the method of adoption and the impact that ASU 2016-02, and any subsequent amendments, will have on our consolidated financial statements.

In January 2017, the FASB issued guidance codified in ASU Topic 2017-04, "Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". ASU 2017-04 simplifies the accounting for goodwill impairment by eliminating the process of measuring the implied value of goodwill, known as step two, from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The standard will be effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. We do not expect the provisions of ASC 2017-04 to have a material impact on our consolidated financial statements.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

3. Investments in Real Estate

Acquisitions

We had no acquisitions during the three months ended March 31, 2018.

Held for Sale

As of March 31, 2018, we have identified four properties that met the criteria to be classified as held for sale. As of March 31, 2018, the four properties had an aggregate carrying value of $41.7 million within total assets and $1.8 million within total liabilities and are shown as assets held for sale and obligations associated with assets held for sale on the condensed consolidated balance sheet, respectively. As of December 31, 2017, we had identified eight properties that met the criteria to be classified as held for sale. As of December 31, 2017, the eight properties had an aggregate carrying value of $139.5 million within total assets and $5.0 million within total liabilities and are shown as assets held for sale and obligations associated with assets held for sale on the consolidated balance sheet, respectively. The properties are not representative of a significant component of our portfolio, nor do the potential sales represent a significant shift in our strategy.

Dispositions

We sold the following real estate properties during the three months ended March 31, 2018:

Location	Metro Area	Date Sold	Gross Proceeds (in millions)		Gain (loss) on sale (in millions)
200 Quannapowitt Parkway	Boston	January 25, 2018	$	15.0	$	(0.4	)
34551 Ardenwood Boulevard	Silicon Valley	February 9, 2018	73.3		25.3
3065 Gold Camp Drive	Sacramento	March 14, 2018	14.2		5.4
11085 Sun Center Drive	Sacramento	March 14, 2018	36.8		9.1
			$	139.3	$	39.4

On April 19, 2018, the Company closed on the sale of a three-property portfolio in Austin, Texas for approximately $48.0 million. The Company expects to recognize a gain on the sale of approximately $12 million in the second quarter of 2018. The properties were classified as held for sale as of March 31, 2018.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

4. Investments in Unconsolidated Joint Ventures

As of March 31, 2018, our investments in unconsolidated joint ventures consist of effective 50% interests in four joint ventures that own data center buildings in Seattle, Hong Kong, Tokyo and Osaka, 20% interests in two joint ventures, one of which owns 10 data center properties with an investment fund managed by Prudential Real Estate Investors (PREI^®) and the other which owns one data center property with an affiliate of Griffin Capital Essential Asset REIT, Inc. (GCEAR), and a 17% interest in a joint venture that owns a data center property in Silicon Valley. The Osaka/Tokyo joint venture was formed on November 1, 2017.

The following tables present summarized financial information for our joint ventures as of March 31, 2018 and December 31, 2017 and for the three months ended March 31, 2018 and 2017 (unaudited, in thousands):

	As of March 31, 2018										Three Months Ended March 31, 2018
2018	Net Investment in Properties		Total Assets		Debt		Total Liabilities		Equity		Revenues		Property Operating Expense			Net Operating Income		Net Income
Total Unconsolidated Joint Ventures	$	1,053,058	$	1,361,412	$	726,234	$	846,918	$	514,494	$	51,731	$	(18,419	)	$	33,312	$	15,334
Our investment in and share of equity in earnings of unconsolidated joint ventures									$	167,564								$	7,410
	As of December 31, 2017										Three Months Ended March 31, 2017
2017	Net Investment in Properties		Total Assets		Debt		Total Liabilities		Equity		Revenues		Property Operating Expense			Net Operating Income		Net Income
Total Unconsolidated Joint Ventures	$	1,061,950	$	1,375,006	$	712,690	$	869,879	$	505,127	$	35,062	$	(10,391	)	$	24,671	$	11,286
Our investment in and share of equity in earnings of unconsolidated joint ventures									$	163,477								$	5,324

The amounts reflected in the tables above, except for our investment in and share of equity in earnings of unconsolidated joint ventures, are based on the historical financial information of the individual joint ventures. The debt of our unconsolidated joint ventures generally are non-recourse to us, except for customary exceptions pertaining to such matters as intentional misuse of funds, environmental conditions, and material misrepresentations.

Differences between the Company’s investment in the joint ventures and the amount of the underlying equity in net assets of the joint ventures are due to basis differences resulting from the Company’s equity investment recorded at its historical basis versus the fair value of the Company’s contributed interest in the joint ventures. Our proportionate share of the earnings or losses related to these unconsolidated joint ventures is reflected as equity in earnings of unconsolidated joint ventures on the accompanying condensed consolidated income statements.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

5. Acquired Intangible Assets and Liabilities

The following summarizes our acquired intangible assets (real estate intangibles, comprised of acquired in-place lease value and tenant relationship value along with acquired above-market lease value) and intangible liabilities (acquired below-market lease value) as of March 31, 2018 and December 31, 2017.

	Balance as of
(Amounts in thousands)	March 31, 2018			December 31, 2017
Real Estate Intangibles:
Acquired in-place lease value:
Gross amount	$	1,478,934		$	1,473,515
Accumulated amortization	(666,047		)	(613,948		)
Net	$	812,887		$	859,567
Tenant relationship value:
Gross amount	$	1,987,017		$	1,978,277
Accumulated amortization	(201,688		)	(169,919		)
Net	$	1,785,329		$	1,808,358
Acquired above-market leases:
Gross amount	$	285,963		$	294,514
Accumulated amortization	(120,395		)	(110,139		)
Net	$	165,568		$	184,375
Acquired below-market leases:
Gross amount	$	451,440		$	469,119
Accumulated amortization	(225,766		)	(219,654		)
Net	$	225,674		$	249,465

Amortization of acquired below-market leases, net of acquired above-market leases, resulted in a change in rental revenues of $(6.9) million and $2.0 million for the three months ended March 31, 2018 and 2017, respectively. The expected average remaining lives for acquired below-market leases and acquired above-market leases is 8.6 years and 3.5 years, respectively, as of March 31, 2018. Estimated annual amortization of acquired below-market leases, net of acquired above-market leases, for each of the five succeeding years and thereafter, commencing April 1, 2018 is as follows:

(Amounts in thousands)
Remainder of 2018	$	(31,936	)
2019	(15,513		)
2020	(3,145		)
2021	2,108
2022	9,118
Thereafter	99,474
Total	$	60,106

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

Amortization of acquired in-place lease value (a component of depreciation and amortization expense) was $57.0 million and $14.2 million for the three months ended March 31, 2018 and 2017, respectively. The expected average amortization period for acquired in-place lease value is 6.4 years as of March 31, 2018. The weighted average remaining contractual life for acquired leases excluding renewals or extensions is 6.1 years as of March 31, 2018. Estimated annual amortization of acquired in-place lease value for each of the five succeeding years and thereafter, commencing April 1, 2018 is as follows:

(Amounts in thousands)
Remainder of 2018	$	153,591
2019	148,067
2020	112,195
2021	87,579
2022	65,627
Thereafter	245,828
Total	$	812,887

Amortization of tenant relationship value (a component of depreciation and amortization expense) was approximately $31.0 million and $17.6 million for the three months ended March 31, 2018 and 2017, respectively. As of March 31, 2018, the weighted average remaining contractual life for tenant relationship value was 15.0 years. Estimated annual amortization of tenant relationship value for each of the five succeeding years and thereafter, commencing April 1, 2018 is as follows:

(Amounts in thousands)
Remainder of 2018	$	110,349
2019	142,181
2020	141,799
2021	141,799
2022	141,799
Thereafter	1,107,402
Total	$	1,785,329

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

6. Debt of the Company

In this Note 6, the “Company” refers only to Digital Realty Trust, Inc. and not to any of its subsidiaries.

The Company itself does not currently have any indebtedness. All debt is currently held directly or indirectly by the Operating Partnership.

Guarantee of Debt

The Company guarantees the Operating Partnership’s obligations with respect to its 5.875% notes due 2020 (5.875% 2020 Notes), 3.400% notes due 2020 (3.400% 2020 Notes), 5.250% notes due 2021 (2021 Notes), 3.950% notes due 2022 (3.950% 2022 Notes), 3.625% notes due 2022 (3.625% 2022 Notes), 2.750% notes due 2023 (2.750% 2023 Notes), 4.750% notes due 2025 (4.750% 2025 Notes) and 3.700% notes due 2027 (2027 Notes). The Company and the Operating Partnership guarantee the obligations of Digital Stout Holding, LLC, an indirect, wholly owned subsidiary of the Operating Partnership, with respect to its 4.750% notes due 2023 (4.750% 2023 Notes), 2.750% notes due 2024 (2.750% 2024 Notes), 4.250% notes due 2025 (4.250% 2025 Notes) and 3.300% notes due 2029 (2029 Notes) and the obligations of Digital Euro Finco, LLC, a wholly owned subsidiary of the Operating Partnership, with respect to its 2.625% notes due 2024 (2.625% 2024 Notes) and Floating Rate Guaranteed Notes due 2019 (2019 Notes). The Company is also the guarantor of the Operating Partnership’s and its subsidiary borrowers’ obligations under the global revolving credit facility and unsecured term loans.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

7. Debt of the Operating Partnership

A summary of outstanding indebtedness of the Operating Partnership as of March 31, 2018 and December 31, 2017 is as follows (in thousands):

Indebtedness	Interest Rate at March 31, 2018		Maturity Date	Principal Outstanding at March 31, 2018				Principal Outstanding at December 31, 2017
Global revolving credit facility	Various	(1)	Jan 15, 2020	$	958,480		(2)	$	558,191		(2)
Deferred financing costs, net				(6,359		)		(7,245		)
Global revolving credit facility, net				952,121				550,946
Unsecured Term Loans
Unsecured term loan — 5-year	Various	(3)(4)	Jan 15, 2021	1,132,931			(5)	1,125,117			(5)
Unsecured term loan — 7-year	Various	(3)(4)	Jan 15, 2023	300,000			(5)	300,000			(5)
Deferred financing costs, net				(4,433		)		(4,784		)
Unsecured term loan, net				1,428,498				1,420,333
Floating rate notes due 2019	EURIBOR + 0.500%		May 22, 2019	154,050			(6)	150,063			(6)
5.875% notes due 2020	5.875%		Feb 1, 2020	500,000				500,000
3.400% notes due 2020	3.400%		Oct 1, 2020	500,000				500,000
5.250% notes due 2021	5.250%		Mar 15, 2021	400,000				400,000
3.950% notes due 2022	3.950%		Jul 1, 2022	500,000				500,000
3.625% notes due 2022	3.625%		Oct 1, 2022	300,000				300,000
2.750% notes due 2023	2.750%		Feb 1, 2023	350,000				350,000
4.750% notes due 2023	4.750%		Oct 13, 2023	420,450			(7)	405,390			(7)
2.625% notes due 2024	2.625%		Apr 15, 2024	739,440			(6)	720,300			(6)
2.750% notes due 2024	2.750%		Jul 19, 2024	350,375			(7)	337,825			(7)
4.250% notes due 2025	4.250%		Jan 17, 2025	560,600			(7)	540,520			(7)
4.750% notes due 2025	4.750%		Oct 1, 2025	450,000				450,000
3.700% notes due 2027	3.700%		Aug 15, 2027	1,000,000				1,000,000
3.300% notes due 2029	3.300%		Jul 19, 2029	490,525			(7)	472,955			(7)
Unamortized discounts				(17,978		)		(18,508		)
Total senior notes, net of discount				6,697,462				6,608,545
Deferred financing costs, net				(36,735		)		(37,788		)
Total unsecured senior notes, net of discount and deferred financing costs				6,660,727				6,570,757

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

Indebtedness	Interest Rate at March 31, 2018		Maturity Date	Principal Outstanding March 31, 2018			Principal Outstanding December 31, 2017
Mortgage loans:
731 East Trade Street	8.22%		Jul 1, 2020	$	2,178		$	2,370
Secured note due 2023	LIBOR + 1.100%	(4)	Mar 1, 2023	104,000			104,000
Unamortized net premiums				217			241
Total mortgage loans, including premiums				106,395			106,611
Deferred financing costs, net				(29		)	(29		)
Total mortgage loans, including premiums and net of deferred financing costs				106,366			106,582
Total indebtedness				$	9,147,712		$	8,648,618

_________________________________ 

(1) The interest rate for borrowings under the global revolving credit facility equals the applicable index plus a margin of 100 basis points, which is based on the current credit ratings of our long-term debt. An annual facility fee of 20 basis points, which is based on the credit ratings of our long-term debt, is due and payable quarterly on the total commitment amount of the facility. Twosix-month extensions are available, which we may exercise if certain conditions are met.

(2) Balances as of March 31, 2018 and December 31, 2017 are as follows (balances, in thousands):

Denomination of Draw	Balance as of March 31, 2018			Weighted-average interest rate		Balance as of December 31, 2017			Weighted-average interest rate
Floating Rate Borrowing (a)
U.S. dollar ($)	$	745,000		2.78	%	$	400,000		2.48	%
British pound sterling (£)	14,015		(c)	1.51	%	18,918		(d)	1.50	%
Euro (€)	38,204		(c)	0.62	%	31,213		(d)	0.62	%
Australian dollar (AUD)	11,672		(c)	2.77	%	—			—	%
Hong Kong dollar (HKD)	4,829		(c)	1.84	%	4,100		(d)	2.20	%
Japanese yen (JPY)	90,985		(c)	0.92	%	65,890		(d)	0.96	%
Canadian dollar (CAD)	38,775		(c)	2.60	%	23,070		(d)	2.36	%
Total	$	943,480		2.48	%	$	543,191		2.15	%
Base Rate Borrowing (b)
U.S. dollar ($)	$	15,000		4.75	%	$	15,000		4.50	%
Total borrowings	$	958,480		2.52	%	$	558,191		2.21	%

(a) The interest rates for floating rate borrowings under the global revolving credit facility equal the applicable index plus a margin of 100 basis points, which is based on the credit ratings of our long-term debt.

(b) The interest rates for base rate borrowings under the global revolving credit facility equal the U.S. Prime Rate.

(c) Based on exchange rates of $1.40 to £1.00, $1.23 to €1.00, $0.77 to 1.00 AUD, $0.13 to 1.00 HKD, $0.01 to 1.00 JPY and $0.78 to 1.00 CAD, respectively, as of March 31, 2018.

(d) Based on exchange rates of $1.35 to £1.00, $1.20 to €1.00, $0.13 to 1.00 HKD, $0.01 to 1.00 JPY and $0.80 to 1.00 CAD, respectively, as of December 31, 2017.

(3) Interest rates are based on our current senior unsecured debt ratings and are 110 basis points and 155 basis points over the applicable index for floating rate advances for the 5-Year Term Loan and the 7-Year Term Loan, respectively.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

(4) We have entered into interest rate swap agreements as a cash flow hedge for interest generated by the U.S. dollar, British pound sterling and Canadian dollar tranches of the unsecured term loans and the secured note due 2023. See Note 14 "Derivative Instruments" for further information.

(5) Balances as of March 31, 2018 and December 31, 2017 are as follows (balances, in thousands):

Denomination of Draw	Balance as of March 31, 2018			Weighted-average interest rate			Balance as of December 31, 2017			Weighted-average interest rate
U.S. dollar ($)	$	606,911		3.08	%	(b)	$	606,911		2.78	%	(d)
British pound sterling (£)	237,519		(a)	1.60	%	(b)	229,011		(c)	1.59	%	(d)
Singapore dollar (SGD)	238,129		(a)	2.21	%		233,788		(c)	2.17	%
Australian dollar (AUD)	176,847		(a)	2.88	%		179,841		(c)	2.79	%
Hong Kong dollar (HKD)	85,001		(a)	1.85	%		85,762		(c)	2.20	%
Canadian dollar (CAD)	76,387		(a)	2.70	%	(b)	78,357		(c)	2.44	%	(d)
Japanese yen (JPY)	12,137		(a)	1.02	%		11,447		(c)	1.05	%
Total	$	1,432,931		2.55	%	(b)	$	1,425,117		2.42	%	(d)

(a) Based on exchange rates of $1.40 to £1.00, $0.76 to 1.00 SGD, $0.77 to 1.00 AUD, $0.13 to 1.00 HKD, $0.78 to 1.00 CAD and $0.01 to 1.00 JPY, respectively, as of March 31, 2018.

(b) As of March 31, 2018, the weighted-average interest rate reflecting interest rate swaps was 2.72% (U.S. dollar), 1.89% (British pound sterling), 1.88% (Canadian dollar) and 2.41% (Total). See Note 14 "Derivative Instruments" for further discussion on interest rate swaps.

(c) Based on exchange rates of $1.35 to £1.00, $0.75 to 1.00 SGD, $0.78 to 1.00 AUD,$0.13 to 1.00 HKD, $0.80 to 1.00 CAD and $0.01 to 1.00 JPY, respectively, as of December 31, 2017.

(d) As of December 31, 2017, the weighted-average interest rate reflecting interest rate swaps was 2.72% (U.S. dollar), 1.89% (British pound sterling), 1.88% (Canadian dollar) and 2.41% (Total).

(6) Based on exchange rates of $1.23 to €1.00 as of March 31, 2018 and $1.20 to €1.00 as of December 31, 2017.

(7) Based on exchange rates of $1.40 to £1.00 as of March 31, 2018 and $1.35 to £1.00 as of December 31, 2017.

Global Revolving Credit Facility

On January 15, 2016, we refinanced our global revolving credit facility and entered into a global senior credit agreement for a $2.0 billion senior unsecured revolving credit facility, which we refer to as the global revolving credit facility, that replaced the $2.0 billion revolving credit facility executed on August 15, 2013, as amended. The global revolving credit facility has an accordion feature that enables us to increase the borrowing capacity of the credit facility to up to $2.5 billion, subject to the receipt of lender commitments and other conditions precedent. The refinanced facility matures on January 15, 2020, with twosix-month extension options available. The interest rate for borrowings under the global revolving credit facility equals the applicable index plus a margin which is based on the credit ratings of our long-term debt and is currently 100 basis points. An annual facility fee on the total commitment amount of the facility, based on the credit ratings of our long-term debt, currently 20 basis points, is payable quarterly. Funds may be drawn in U.S., Canadian, Singapore, Australian and Hong Kong dollars, as well as Euro, British pound sterling and Japanese yen. As of March 31, 2018, interest rates are based on 1-month LIBOR, 1-month GBP LIBOR, 1-month EURIBOR, 1-month BBR, 1-month HIBOR, 1-month JPY LIBOR and 1-month CDOR, plus a margin of 1.00%. The facility also bore a base borrowing rate of 4.75% (USD) which is based on the U.S. Prime Rate. We have used and intend to use available borrowings under the global revolving credit facility to acquire additional properties, fund development opportunities and for general working capital and other corporate purposes, including potentially for the repurchase, redemption or retirement of outstanding debt or equity securities. As of March 31, 2018, approximately $22.9 million of letters of credit were issued.

The global revolving credit facility contains various restrictive covenants, including limitations on our ability to incur additional indebtedness, make certain investments or merge with another company, and requirements to maintain financial coverage ratios, including with respect to unencumbered assets. In addition, the global revolving credit facility restricts Digital Realty Trust, Inc. from making distributions to its stockholders, or redeeming or otherwise repurchasing shares of its capital stock, after the occurrence and during the continuance of an event of default, except in limited circumstances including as

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

necessary to enable Digital Realty Trust, Inc. to maintain its qualification as a REIT and to minimize the payment of income or excise tax. As of March 31, 2018, we were in compliance with all of such covenants.

Unsecured Term Loans

On January 15, 2016, we refinanced our senior unsecured multi-currency term loan facility and entered into a term loan agreement, which governs (i) a $1.25 billion5-year senior unsecured term loan, which we refer to as the 5-Year Term Loan, and (ii) a $300 million7-year senior unsecured term loan, which we refer to as the 7-Year Term Loan. The 2016 term loan agreement replaced the $1.0 billion term loan agreement executed on April 16, 2012, as amended. The 5-Year Term Loan matures on January 15, 2021 and the 7-Year Term Loan matures on January 15, 2023. In addition, we have the ability from time to time to increase the aggregate size of lending under the 2016 term loan agreement from $1.55 billion to up to $1.8 billion, subject to receipt of lender commitments and other conditions precedent. Interest rates are based on our senior unsecured debt ratings and are currently 110 basis points and 155 basis points over the applicable index for floating rate advances for the 5-Year Term Loan and the 7-Year Term Loan, respectively. Funds may be drawn in U.S., Canadian, Singapore, Australian and Hong Kong dollars, as well as Euro, British pound sterling and Japanese yen. Based on exchange rates in effect at March 31, 2018, the balance outstanding is approximately $1.4 billion, excluding deferred financing costs. We have used borrowings under the term loans for acquisitions, repayment of indebtedness, development, working capital and general corporate purposes. The covenants under the term loans are consistent with our global revolving credit facility and, as of March 31, 2018, we were in compliance with all of such covenants.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

The table below summarizes our debt maturities and principal payments as of March 31, 2018 (in thousands):

	Global Revolving Credit Facility(1)		Unsecured Term Loans		Unsecured Senior Notes			Mortgage Loans		Total Debt
Remainder of 2018	$	—	$	—	$	—		$	401	$	401
2019	—		—		154,050			644		154,694
2020	958,480		—		1,000,000			1,133		1,959,613
2021	—		1,132,931		400,000			—		1,532,931
2022	—		—		800,000			—		800,000
Thereafter	—		300,000		4,361,390			104,000		4,765,390
Subtotal	$	958,480	$	1,432,931	$	6,715,440		$	106,178	$	9,213,029
Unamortized discount	—		—		(17,978		)	—		(17,978		)
Unamortized premium	—		—		—			217		217
Total	$	958,480	$	1,432,931	$	6,697,462		$	106,395	$	9,195,268

(1) Subject to twosix-month extension options exercisable by us. The bank group is obligated to grant the extension options provided we give proper notice, we make certain representations and warranties and no default exists under the global revolving credit facility.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

8. Income per Share

The following is a summary of basic and diluted income per share (in thousands, except share and per share amounts):

	Three Months Ended March 31,
	2018		2017
Net income available to common stockholders	$	86,298	$	66,145
Weighted average shares outstanding—basic	205,714,173		159,297,027
Potentially dilutive common shares:
Stock options	—		4
Unvested incentive units	302,016		237,336
Forward equity offering	—		283,388
Market performance-based awards	491,287		603,900
Weighted average shares outstanding—diluted	206,507,476		160,421,655
Income per share:
Basic	$	0.42	$	0.42
Diluted	$	0.42	$	0.41

We have excluded the following potentially dilutive securities in the calculations above as they would be antidilutive or not dilutive:

	Three Months Ended March 31,
	2018	2017
Weighted average of Operating Partnership common units not owned by Digital Realty Trust, Inc.	8,295,287	2,177,874
Potentially dilutive Series C Cumulative Redeemable Perpetual Preferred Stock	1,967,430	—
Potentially dilutive Series F Cumulative Redeemable Preferred Stock	—	1,783,083
Potentially dilutive Series G Cumulative Redeemable Preferred Stock	2,439,505	2,438,074
Potentially dilutive Series H Cumulative Redeemable Preferred Stock	3,574,840	3,572,744
Potentially dilutive Series I Cumulative Redeemable Preferred Stock	2,442,359	2,440,928
Potentially dilutive Series J Cumulative Redeemable Preferred Stock	1,948,598	—
Total	20,668,019	12,412,703

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

9. Income per Unit

The following is a summary of basic and diluted income per unit (in thousands, except unit and per unit amounts):

	Three Months Ended March 31,
	2018		2017
Net income available to common unitholders	$	89,778	$	67,049
Weighted average units outstanding—basic	214,009,460		161,474,901
Potentially dilutive common units:
Stock options	—		4
Unvested incentive units	302,016		237,336
Forward equity offering	—		283,388
Market performance-based awards	491,287		603,900
Weighted average units outstanding—diluted	214,802,763		162,599,529
Income per unit:
Basic	$	0.42	$	0.42
Diluted	$	0.42	$	0.41

We have excluded the following potentially dilutive securities in the calculations above as they would be antidilutive or not dilutive:

	Three Months Ended March 31,
	2018	2017
Potentially dilutive Series C Cumulative Redeemable Perpetual Preferred Units	1,967,430	—
Potentially dilutive Series F Cumulative Redeemable Preferred Units	—	1,783,083
Potentially dilutive Series G Cumulative Redeemable Preferred Units	2,439,505	2,438,074
Potentially dilutive Series H Cumulative Redeemable Preferred Units	3,574,840	3,572,744
Potentially dilutive Series I Cumulative Redeemable Preferred Units	2,442,359	2,440,928
Potentially dilutive Series J Cumulative Redeemable Preferred Units	1,948,598	—
Total	12,372,732	10,234,829

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

10. Income Taxes

Digital Realty Trust, Inc. has elected to be treated and believes that it has been organized and has operated in a manner that has enabled it to qualify as a REIT for federal income tax purposes. As a REIT, Digital Realty Trust, Inc. is generally not subject to corporate level federal income taxes on taxable income distributed currently to its stockholders. Since inception, Digital Realty Trust, Inc. has distributed at least 100% of its taxable income annually and intends to do so for the tax year ending December 31, 2018. As such, no provision for federal income taxes has been included in the Company's accompanying condensed consolidated financial statements for the three months ended March 31, 2018 and 2017.

The Operating Partnership is a partnership and is not required to pay federal income tax. Instead, taxable income is allocated to its partners, who include such amounts on their federal income tax returns. As such, no provision for federal income taxes has been included in the Operating Partnership’s accompanying condensed consolidated financial statements.

We have elected taxable REIT subsidiary (“TRS”) status for some of our consolidated subsidiaries. In general, a TRS may provide services that would otherwise be considered impermissible for REITs to provide and may hold assets that REITs cannot hold directly. Income taxes for TRS entities were accrued, as necessary, for the three months ended March 31, 2018 and 2017.

For our TRS entities and foreign subsidiaries that are subject to U.S. federal, state and foreign income taxes, deferred tax assets and liabilities are established for temporary differences between the financial reporting basis and the tax basis of assets and liabilities at the enacted tax rates expected to be in effect when the temporary differences reverse. A valuation allowance for deferred tax assets is provided if we believe it is more likely than not that the deferred tax asset may not be realized, based on available evidence at the time the determination is made. An increase or decrease in the valuation allowance that results from the change in circumstances that causes a change in our judgment about the realizability of the related deferred tax asset is included in the income statement. Deferred tax assets (net of valuation allowance) and liabilities for our TRS entities and foreign subsidiaries were accrued, as necessary, for the three months ended March 31, 2018 and 2017. As of March 31, 2018 and December 31, 2017, we had deferred tax liabilities net of deferred tax assets of approximately $172.3 million and $167.0 million, respectively, primarily related to our foreign properties, classified in accounts payable and other accrued expenses in the condensed consolidated balance sheet. The majority of our net deferred tax liability relates to differences between tax basis and book basis of the assets acquired in the Sentrum portfolio acquisition during 2012 and the European portfolio acquisition in July 2016. The valuation allowance against the deferred tax assets at March 31, 2018 and December 31, 2017 relate primarily to net operating loss carryforwards attributable to certain foreign jurisdictions and from the acquisition of Telx, that we do not expect to utilize, and deferred tax assets resulting from certain foreign real estate acquisition costs, which are not depreciated for tax purposes, but are deductible upon ultimate sale of the property. Given the indefinite holding period associated with these assets, realization of these deferred tax assets is not more-likely-than-not as of March 31, 2018 and December 31, 2017.

The federal tax legislation enacted on December 22, 2017, commonly known as the Tax Cuts and Jobs Act (the “2017 Tax Legislation”), reduced the corporate federal tax rate in the U.S. to 21%, effective upon January 1, 2018. As such, deferred tax assets and liabilities are remeasured using the lower corporate federal tax rate at December 31, 2017. While we do not expect other material impacts, the new tax rules are complex and lack developed administrative guidance. We continue to work with our tax advisors to analyze and determine the full impact that the 2017 Tax Legislation as a whole will have on us.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

11. Equity and Accumulated Other Comprehensive Loss, Net

(a) Noncontrolling Interests in Operating Partnership

Noncontrolling interests in the Operating Partnership relate to the interests that are not owned by Digital Realty Trust, Inc. The following table shows the ownership interests in the Operating Partnership as of March 31, 2018 and December 31, 2017:

	March 31, 2018			December 31, 2017
	Number of units	Percentage of total		Number of units	Percentage of total
Digital Realty Trust, Inc.	205,874,914	95.9	%	205,470,300	96.0	%
Noncontrolling interests consist of:
Common units held by third parties	6,730,727	3.2	%	6,899,094	3.2	%
Incentive units held by employees and directors (see Note 14)	2,005,761	0.9	%	1,590,001	0.8	%
	214,611,402	100.0	%	213,959,395	100.0	%

Limited partners have the right to require the Operating Partnership to redeem part or all of their common units for cash based on the fair market value of an equivalent number of shares of Digital Realty Trust, Inc. common stock at the time of redemption. Alternatively, Digital Realty Trust, Inc. may elect to acquire those common units in exchange for shares of Digital Realty Trust, Inc. common stock on a one-for-one basis, subject to adjustment in the event of stock splits, stock dividends, issuance of stock rights, specified extraordinary distributions and similar events. Pursuant to authoritative accounting guidance, Digital Realty Trust, Inc. evaluated whether it controls the actions or events necessary to issue the maximum number of shares that could be required to be delivered under the share settlement of the noncontrolling Operating Partnership common and incentive units. Based on the results of this analysis, we concluded that the common units and incentive units of the Operating Partnership met the criteria to be classified within equity, except for certain common units issued to certain former unitholders in DuPont Fabros Technology, L.P. ("DFT Operating Partnership") in the DuPont Fabros Technology merger ("DFT Merger"), which are subject to certain restrictions and, accordingly, are not presented as permanent equity in the condensed consolidated balance sheet.

In connection with the initial public offering of DuPont Fabros Technology, Inc. ("DFT") in 2007, DFT, the DFT Operating Partnership and certain DFT Operating Partnership unitholders entered into a tax protection agreement to assist such unitholders in deferring certain U.S. federal income tax liabilities that may have otherwise resulted from the contribution transactions undertaken in connection with the initial public offering and the ownership of interests in the DFT Operating Partnership and to set forth certain agreements with respect to other tax matters. In connection with the DFT Merger, certain DFT Operating Partnership unitholders entered into a new tax protection agreement with Digital Realty Trust, Inc. and the Operating Partnership that replaced and superseded the DFT tax protection agreement, effective as of the closing of the DFT Merger. Pursuant to the new tax protection agreement, such DFT Operating Partnership unitholders entered into a guarantee of certain debt of a subsidiary of the Operating Partnership. The Operating Partnership must offer such DFT Operating Partnership unitholders a new guarantee opportunity in the event any guaranteed debt is repaid prior to March 1, 2023. If the Operating Partnership fails to offer the guarantee opportunity or to allocate guaranteed debt to any such DFT Operating Partnership unitholder as required under the new tax protection agreement, the Operating Partnership generally would be required to indemnify each such DFT Operating Partnership unitholder for the tax liability resulting from such failure, as determined under the new tax protection agreement.

The redemption value of the noncontrolling Operating Partnership common units and the vested incentive units was approximately $889.0 million and $887.0 million based on the closing market price of Digital Realty Trust, Inc. common stock on March 31, 2018 and December 31, 2017, respectively.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

The following table shows activity for the noncontrolling interests in the Operating Partnership for the three months ended March 31, 2018:

	Common Units		Incentive Units		Total
As of December 31, 2017	6,899,094		1,590,001		8,489,095
Redemption of common units for shares of Digital Realty Trust, Inc. common stock (1)	(168,367	)	—		(168,367	)
Incentive units issued upon achievement of market performance condition	—		326,947		326,947
Grant of incentive units to employees and directors	—		95,592		95,592
Cancellation / forfeitures of incentive units held by employees and directors	—		(6,779	)	(6,779	)
As of March 31, 2018	6,730,727		2,005,761		8,736,488

(1) Redemption of common units were recorded as a reduction to noncontrolling interests in the Operating Partnership and an increase to common stock and additional paid in capital based on the book value per unit in the accompanying condensed consolidated balance sheet of Digital Realty Trust, Inc.

(b) Dividends

We have declared and paid the following dividends on our common and preferred stock for the three months ended March 31, 2018 (in thousands, except per share data):

Date dividend declared	Dividend payment date	Series C Preferred Stock		Series G Preferred Stock		Series H Preferred Stock		Series I Preferred Stock		Series J Preferred Stock		Common Stock
March 1, 2018	March 30, 2018	$	3,333	$	3,672	$	6,730	$	3,969	$	2,625	$	208,015
Annual rate of dividend per share		$	1.65625	$	1.46875	$	1.84375	$	1.58750	$	1.31250	$	4.04000

Distributions out of Digital Realty Trust, Inc.’s current or accumulated earnings and profits are generally classified as dividends whereas distributions in excess of its current and accumulated earnings and profits, to the extent of a stockholder’s U.S. federal income tax basis in Digital Realty Trust, Inc.’s stock, are generally classified as a return of capital. Distributions in excess of a stockholder’s U.S. federal income tax basis in Digital Realty Trust, Inc.’s stock are generally characterized as capital gain. Cash provided by operating activities has generally been sufficient to fund all distributions, however, in the future we may also need to utilize borrowings under the global revolving credit facility to fund all or a portion of distributions.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

(c) Accumulated Other Comprehensive Loss, Net

The accumulated balances for each item within other comprehensive income (loss), net are as follows (in thousands):

	Foreign currency translation adjustments			Cash flow hedge adjustments			Foreign currency net investment hedge adjustments		Accumulated other comprehensive  income (loss), net
Balance as of December 31, 2017	$	(147,370	)	$	13,200		$	25,738	$	(108,432	)
Net current period change	(3,598		)	8,282			—		4,684
Reclassification to interest expense from interest rate swaps	—			(226		)	—		(226		)
Balance as of March 31, 2018	$	(150,968	)	$	21,256		$	25,738	$	(103,974	)

12. Capital and Accumulated Other Comprehensive Loss

(a) Allocations of Net Income and Net Losses to Partners

Except for special allocations to holders of profits interest units described below in Note 13(a) under the heading “Incentive Plan—Long-Term Incentive Units,” the Operating Partnership’s net income will generally be allocated to Digital Realty Trust, Inc. (the General Partner) to the extent of the accrued preferred return on its preferred units, and then to the General Partner and the Operating Partnership’s limited partners in accordance with the respective percentage interests in the common units issued by the Operating Partnership. Net loss will generally be allocated to the General Partner and the Operating Partnership’s limited partners in accordance with the respective common percentage interests in the Operating Partnership until the limited partner’s capital is reduced to zero and any remaining net loss would be allocated to the General Partner. However, in some cases, losses may be disproportionately allocated to partners who have guaranteed our debt. The allocations described above are subject to special allocations relating to depreciation deductions and to compliance with the provisions of Sections 704(b) and 704(c) of the Code, and the associated Treasury Regulations.

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March 31, 2018 and 2017

(b) Partnership Units

Limited partners have the right to require the Operating Partnership to redeem part or all of their common units for cash based on the fair market value of an equivalent number of shares of the General Partner’s common stock at the time of redemption. Alternatively, the General Partner may elect to acquire those common units in exchange for shares of the General Partner’s common stock on a one-for-one basis, subject to adjustment in the event of stock splits, stock dividends, issuance of stock rights, specified extraordinary distributions and similar events. Pursuant to authoritative accounting guidance, Digital Realty Trust, Inc. evaluated whether it controls the actions or events necessary to issue the maximum number of shares that could be required to be delivered under the share settlement of the noncontrolling Operating Partnership common and incentive units. Based on the results of this analysis, we concluded that the common units and incentive units of the Operating Partnership met the criteria to be classified within capital, except for certain common units issued to certain former DFT Operating Partnership unitholders in the DFT Merger, which are subject to certain restrictions and, accordingly, are not presented as permanent capital in the condensed consolidated balance sheet.

In connection with the initial public offering of DFT in 2007, DFT, the DFT Operating Partnership and certain DFT Operating Partnership unitholders entered into a tax protection agreement to assist such unitholders in deferring certain U.S. federal income tax liabilities that may have otherwise resulted from the contribution transactions undertaken in connection with the initial public offering and the ownership of interests in the DFT Operating Partnership and to set forth certain agreements with respect to other tax matters. In connection with the DFT Merger, certain DFT Operating Partnership unitholders entered into a new tax protection agreement with Digital Realty Trust, Inc. and the Operating Partnership that replaced and superseded the DFT tax protection agreement, effective as of the closing of the DFT Merger. Pursuant to the new tax protection agreement, such DFT Operating Partnership unitholders entered into a guarantee of certain debt of a subsidiary of the Operating Partnership. The Operating Partnership must offer such DFT Operating Partnership unitholders a new guarantee opportunity in the event any guaranteed debt is repaid prior to March 1, 2023. If the Operating Partnership fails to offer the guarantee opportunity or to allocate guaranteed debt to any such DFT Operating Partnership unitholder as required under the new tax protection agreement, the Operating Partnership generally would be required to indemnify each such DFT Operating Partnership unitholder for the tax liability resulting from such failure, as determined under the new tax protection agreement.

The redemption value of the limited partners’ common units and the vested incentive units was approximately $889.0 million and $887.0 million based on the closing market price of Digital Realty Trust, Inc.’s common stock on March 31, 2018 and December 31, 2017, respectively.

(c) Distributions

All distributions on the Operating Partnership’s units are at the discretion of Digital Realty Trust, Inc.’s board of directors. The Operating Partnership has declared and paid the following distributions on its common and preferred units for the three months ended March 31, 2018 (in thousands, except for per unit data):

Date distribution declared	Distribution payment date	Series C Preferred Units		Series G Preferred Units		Series H Preferred Units		Series I Preferred Units		Series J Preferred Units		Common Units
March 1, 2018	March 30, 2018	$	3,333	$	3,672	$	6,730	$	3,969	$	2,625	$	216,953
Annual rate of distribution per unit		$	1.65625	$	1.46875	$	1.84375	$	1.58750	$	1.31250	$	4.04000

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

(d) Accumulated Other Comprehensive Loss

The accumulated balances for each item within other comprehensive income are as follows (in thousands):

	Foreign currency translation adjustments			Cash flow hedge adjustments			Foreign currency net investment hedge adjustments		Accumulated other comprehensive loss
Balance as of December 31, 2017	$	(151,795	)	$	12,758		$	26,152	$	(112,885	)
Net current period change	(3,743		)	8,616			—		4,873
Reclassification to interest expense from interest rate swaps	—			(235		)	—		(235		)
Balance as of March 31, 2018	$	(155,538	)	$	21,139		$	26,152	$	(108,247	)

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

13. Incentive Plan

On April 28, 2014, our stockholders approved the Digital Realty Trust, Inc., Digital Services, Inc., and Digital Realty Trust, L.P. 2014 Incentive Award Plan (as amended, the 2014 Incentive Award Plan). The 2014 Incentive Award Plan became effective and replaced the Amended and Restated 2004 Incentive Award Plan, as amended, as of the date of such stockholder approval. The material features of the 2014 Incentive Award Plan are described in our definitive Proxy Statement filed on March 19, 2014 in connection with the 2014 Annual Meeting, which description is incorporated herein by reference. Effective as of September 14, 2017, the 2014 Incentive Award Plan was amended to provide that shares which remained available for issuance under DFT’s Amended and Restated 2011 Equity Incentive Plan immediately prior to the closing of the DFT Merger (as adjusted and converted into shares of Digital Realty Trust, Inc.’s common stock) may be used for awards under the 2014 Incentive Award Plan and will not reduce the shares authorized for grant under the 2014 Incentive Award Plan, to the extent that using such shares is permitted without stockholder approval under applicable stock exchange rules. In connection with the amendment to the 2014 Incentive Award Plan, on September 22, 2017, Digital Realty Trust, Inc. registered an additional 3,714,560 shares that may be issued pursuant to the 2014 Incentive Award Plan.

As of March 31, 2018, approximately 7.1 million shares of common stock, including awards convertible into or exchangeable for shares of common stock, remained available for future issuance under the 2014 Incentive Award Plan. Each long-term incentive unit and each Class D unit issued under the 2014 Incentive Award Plan counts as one share of common stock for purposes of calculating the limit on shares that may be issued under the 2014 Incentive Award Plan and the individual award limits set forth therein.

Below is a summary of our compensation expense for the three months ended March 31, 2018 and 2017 and our unearned compensation as of March 31, 2018 and December 31, 2017 (in millions):

	Deferred Compensation								Unearned Compensation				Expected period to recognize unearned compensation (in years)
	Expensed				Capitalized				As of March 31, 2018		As of December 31, 2017
	Three Months Ended March 31,
Type of incentive award	2018		2017		2018		2017
Long-term incentive units	$	0.9	$	0.7	$	0.2	$	0.4	$	15.0	$	6.9	3.2
Market performance-based awards	3.1		2.1		0.3		0.7		44.7		24.7		2.6
Restricted stock	1.5		1.0		1.1		0.8		30.5		17.5		3.2

(a) Long-Term Incentive Units

Long-term incentive units, which are also referred to as profits interest units, may be issued to eligible participants for the performance of services to or for the benefit of the Operating Partnership. Long-term incentive units (other than Class D units), whether vested or not, will receive the same quarterly per unit distributions as Operating Partnership common units, which equal the per share distributions on Digital Realty Trust, Inc. common stock. Initially, long-term incentive units do not have full parity with common units with respect to liquidating distributions. If such parity is reached, vested long-term incentive units may be converted into an equal number of common units of the Operating Partnership at any time, and thereafter enjoy all the rights and privileges of common units of the Operating Partnership, including redemption rights. For a discussion of how long-term incentive units achieve parity with common units, see Note 14(a) to our consolidated financial statements for the fiscal year ended December 31, 2017, included in our Annual Report on 10-K for the year ended December 31, 2017.

Below is a summary of our long-term incentive unit activity for the three months ended March 31, 2018.

Unvested Long-term Incentive Units	Units		Weighted-Average Grant Date Fair Value
Unvested, beginning of period	99,295		$	90.59
Granted	92,361		99.01
Vested	(16,313	)	100.18
Unvested, end of period	175,343		$	94.13

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

The grant date fair values, which equal the market price of Digital Realty Trust, Inc. common stock on the applicable grant date(s), are being expensed on a straight-line basis for service awards over four years, the current vesting period of the long-term incentive units.

(b) Market Performance-Based Awards

During the three months ended March 31, 2018 and 2017, the Compensation Committee of the Board of Directors of Digital Realty Trust, Inc. approved the grant of market performance-based Class D units of the Operating Partnership and market performance-based restricted stock units, or RSUs, covering shares of Digital Realty Trust, Inc.’s common stock (collectively, the “awards”), under the 2014 Incentive Award Plan to officers and employees of the Company.

The awards, which were determined to contain a market condition, utilize total shareholder return, or TSR, over a three-year measurement period as the market performance metric. Awards will vest based on Digital Realty Trust, Inc.’s TSR relative to the MSCI US REIT Index, or RMS, over a three-year market performance period, or the Market Performance Period, commencing in January 2018 or January 2017, as applicable (or, if earlier, ending on the date on which a change in control of the Company occurs), subject to continued services. Vesting with respect to the market condition is measured based on the difference between Digital Realty Trust, Inc.’s TSR percentage and the TSR percentage of the RMS, or the RMS Relative Market Performance. In the event that the RMS Relative Market Performance during the Market Performance Period is achieved at the “threshold,” “target” or “high” level as set forth below, the awards will become vested as to the market condition with respect to the percentage of Class D units or RSUs, as applicable, set forth below:

Level	RMS Relative Market Performance	Market Performance Vesting Percentage
Below Threshold Level	≤ -300 basis points	0%
Threshold Level	-300 basis points	25%
Target Level	100 basis points	50%
High Level	> 500 basis points	100%

If the RMS Relative Market Performance falls between the levels specified above, the percentage of the award that will vest with respect to the market condition will be determined using straight-line linear interpolation between such levels.

In January 2018, following the completion of the applicable Market Performance Period, the Compensation Committee determined that the high level had been achieved for the 2015 awards and, accordingly, 363,193 class D units (including 36,246 distribution equivalent units that immediately vested on December 31, 2017 upon the high level being achieved) and 49,707 RSUs performance vested, subject to service-based vesting. On February 27, 2018, 50% of the 2015 awards vested and the remaining 50% will vest on February 27, 2019, subject to continued employment through each applicable vesting date.

Following the completion of the applicable Market Performance Period, the 2017 awards that satisfy the market condition, if any, will vest 50% on February 27, 2020 and 50% on February 27, 2021, subject to continued employment through each applicable vesting date. Following the completion of the applicable Market Performance Period, the 2018 awards that satisfy the market condition, if any, will vest 50% on February 27, 2021 and 50% on February 27, 2022, subject to continued employment through each applicable vesting date.

In the event of a change in control, termination of employment by the Company without cause, or termination of employment by the award recipient for good reason, death, disability or retirement, service-based vesting will be accelerated, in full or on a pro rata basis in any case prior to the completion of the Market Performance Period. However, vesting with respect to the market condition will continue to be measured based on RMS Relative Market Performance during the three-year Market Performance Period (or, in the case of a change in control, shortened Market Performance Period).

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

The fair values of the 2018 awards and 2017 awards granted were measured using a Monte Carlo simulation to estimate the probability of the market vesting condition being satisfied. Digital Realty Trust, Inc.’s achievement of the market vesting condition is contingent on its TSR over a three-year market performance period, relative to the total shareholder return of the RMS. The Monte Carlo simulation is a probabilistic technique based on the underlying theory of the Black-Scholes formula, which was run for 100,000 trials to determine the fair value of the awards. For each trial, the payoff to an award is calculated at the settlement date and is then discounted to the grant date at a risk-free interest rate. The total expected value of the awards on the grant date was determined by multiplying the average value per award over all trials by the number of awards granted. Assumptions used in the valuations are summarized as follows:

Award Date	Expected Stock Price Volatility	Risk-Free Interest rate
January 1, 2017	25%	1.49%
February 28, 2017	23%	1.43%
January 1, 2018	22%	1.98%
March 1, 2018	22%	2.34%
March 9, 2018	22%	2.42%

These valuations were performed in a risk-neutral framework, so no assumption was made with respect to an equity risk premium.

As of March 31, 2018, 2,165,692 Class D units and 590,569 market performance-based RSUs had been awarded to our executive officers and other employees. The number of units granted reflects the maximum number of Class D units or market performance-based RSUs, as applicable, which will become vested assuming the achievement of the highest level of RMS Relative Market Performance under the awards and, in the case of the Class D units, also includes distribution equivalent units. The fair value of these awards of approximately $96.7 million will be recognized as compensation expense on a straight-line basis over the expected service period of approximately four years. If the market conditions are not met, at the end of the applicable performance periods, the unamortized amount will be recognized as an expense at that time.

(c) Restricted Stock

Below is a summary of our restricted stock activity for the three months ended March 31, 2018.

Unvested Restricted Stock	Shares		Weighted-Average Grant Date Fair Value
Unvested, beginning of period	259,422		$	90.54
Granted	154,647		99.34
Vested	(80,614	)	81.99
Unvested, end of period	333,455		$	96.64

The grant date fair values, which equal the market price of Digital Realty Trust, Inc. common stock on the grant date, are expensed on a straight-line basis for service awards over the vesting period of the restricted stock, which is generally four years.

14. Derivative Instruments

Currently, we use interest rate swaps to manage our interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

To comply with the provisions of fair value accounting guidance, we incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by us and our counterparties. However, as of March 31, 2018, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. We do not have any fair value measurements on a recurring basis using significant unobservable inputs (Level 3) as of March 31, 2018 or December 31, 2017.

The Company presents its interest rate derivatives in its condensed consolidated balance sheets on a gross basis as interest rate swap assets (recorded in other assets) and interest rate swap liabilities (recorded in accounts payable and other accrued liabilities). As of March 31, 2018, there was no impact from netting arrangements as the Company did not have any derivatives in liability positions.

Cash Flow Hedges of Interest Rate Risk

Our objectives in using interest rate derivatives are to add stability to interest expense and to manage our exposure to interest rate movements related to certain floating rate debt obligations. To accomplish this objective, we primarily use interest rate swaps as part of our interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

We record all our interest rate swaps on the condensed consolidated balance sheet at fair value. In determining the fair value of our interest rate swaps, we consider the credit risk of our counterparties. These counterparties are generally larger financial institutions engaged in providing a variety of financial services. These institutions generally face similar risks regarding adverse changes in market and economic conditions, including, but not limited to, fluctuations in interest rates, exchange rates, equity and commodity prices and credit spreads. The recent and pervasive disruptions in the financial markets have heightened the risks to these institutions.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

As of March 31, 2018 and December 31, 2017, we had the following outstanding interest rate derivatives that were designated as effective cash flow hedges of interest rate risk (in thousands):

Notional Amount										Fair Value at Significant Other Observable Inputs (Level 2)
As of March 31, 2018			As of December 31, 2017			Type of Derivative	Strike Rate	Effective Date	Expiration Date	As of March 31, 2018 (5)		As of December 31, 2017(5)
Currently-paying contracts
$	206,000	(1)	$	206,000		Swap	1.611	Jun 15, 2017	Jan 15, 2020	$	2,551	$	1,409
54,905		(1)	54,905			Swap	1.605	Jun 6, 2017	Jan 6, 2020	673		374
75,000		(1)	75,000		(1)	Swap	1.016	Apr 6, 2016	Jan 6, 2021	2,862		2,260
75,000		(1)	75,000		(1)	Swap	1.164	Jan 15, 2016	Jan 15, 2021	2,583		1,947
300,000		(2)	300,000		(2)	Swap	1.435	Jan 15, 2016	Jan 15, 2023	15,001		9,978
237,519		(3)	229,012		(3)	Swap	0.792	Jan 15, 2016	Jan 15, 2019	9		(430		)
76,387		(4)	78,357		(4)	Swap	0.779	Jan 15, 2016	Jan 15, 2021	2,972		3,034
$	1,024,811		$	1,018,274						$	26,651	$	18,572

(1) Represents portions of the U.S. dollar tranche of the 5-Year Term Loan.

(2) Represents the U.S. dollar tranche of the 7-Year Term Loan.

(3) Represents the British pound sterling tranche of the 5-Year Term Loan. Translation to U.S. dollars is based on exchange rates of $1.40 to £1.00 as of March 31, 2018 and $1.35 to £1.00 as of December 31, 2017.

(4) Represents the Canadian dollar tranche of the 5-Year Term Loan. Translation to U.S. dollars is based on exchange rates of $0.78 to 1.00 CAD as of March 31, 2018 and $0.80 to 1.00 CAD as of December 31, 2017.

(5) Balance recorded in other assets in the consolidated balance sheets if positive and recorded in accounts payable and other accrued liabilities in the consolidated balance sheets if negative.

As of March 31, 2018, we estimate that an additional $4.7 million will be reclassified as a decrease to interest expense during the twelve months ended March 31, 2019, when the hedged forecasted transactions impact earnings.

Foreign Currency Net Investment Hedges

During the three months ended June 30, 2016, we entered into a series of forward contracts pursuant to which we agreed to sell an amount of foreign currency for an agreed upon amount of U.S. dollars. These forward contracts were executed to manage foreign currency exposures associated with certain transactions. As of June 30, 2016, the forward contracts did not meet the criteria for hedge accounting under GAAP and had a fair value of approximately $37.8 million. On July 1, 2016, the four forward contracts still in place met the criteria for net investment hedge accounting. During the year ended December 31, 2017, we terminated the four forward contracts with a notional amount of GBP 357.3 million. In connection with the settlement, we received approximately $64.0 million in proceeds and the related amount of approximately $26.2 million of accumulated other comprehensive income (AOCI) will remain in AOCI until the Company sells or liquidates its GBP-denominated investments, which has not occurred as of March 31, 2018.

Credit-risk-related Contingent Features

We have agreements with each of our derivative counterparties that contain a provision where we could be declared in default on our derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to our default on the indebtedness. As of March 31, 2018, we did not have any derivatives in a net liability position, and have not posted any collateral related to these agreements.

15. Fair Value of Financial Instruments

We disclose fair value information about all financial instruments, whether or not recognized in the condensed consolidated balance sheets, for which it is practicable to estimate fair value. Current accounting guidance requires the

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

Company to disclose fair value information about all financial instruments, whether or not recognized in the balance sheets, for which it is practicable to estimate fair value.

The Company’s disclosures of estimated fair value of financial instruments at March 31, 2018 and December 31, 2017 were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts.

The carrying amounts for cash and cash equivalents, restricted cash, accounts and other receivables, accounts payable and other accrued liabilities, accrued dividends and distributions, security deposits and prepaid rents approximate fair value because of the short-term nature of these instruments. As described in Note 14 "Derivative Instruments", the interest rate swaps are recorded at fair value.

We calculate the fair value of our mortgage loans, unsecured term loan and unsecured senior notes based on currently available market rates assuming the loans are outstanding through maturity and considering the collateral and other loan terms. In determining the current market rate for fixed rate debt, a market spread is added to the quoted yields on federal government treasury securities with similar maturity dates to our debt. The carrying value of our global revolving credit facility approximates fair value, due to the variability of interest rates.

As of March 31, 2018 and December 31, 2017, the aggregate estimated fair value and carrying value of our global revolving credit facility, unsecured term loans, unsecured senior notes and mortgage loans were as follows (in thousands):

	Categorization under the fair value hierarchy	As of March 31, 2018				As of December 31, 2017
		Estimated Fair Value		Carrying Value		Estimated Fair Value		Carrying Value
Global revolving credit facility (1)(5)	Level 2	$	958,480	$	958,480	$	558,191	$	558,191
Unsecured term loans (2)(6)	Level 2	1,432,931		1,432,931		1,425,117		1,425,117
Unsecured senior notes (3)(4)(7)	Level 2	6,907,183		6,697,462		6,976,603		6,608,545
Mortgage loans (3)(8)	Level 2	106,346		106,395		106,523		106,611
		$	9,404,940	$	9,195,268	$	9,066,434	$	8,698,464

(1) The carrying value of our global revolving credit facility approximates estimated fair value, due to the variability of interest rates and the stability of our credit ratings.

(2) The carrying value of our unsecured term loans approximates estimated fair value, due to the variability of interest rates and the stability of our credit ratings.

(3) Valuations for our unsecured senior notes and mortgage loans are determined based on the expected future payments discounted at risk-adjusted rates. The 2019 Notes, 5.875% 2020 Notes, 3.400% 2020 Notes, 2021 Notes, 3.950% 2022 Notes, 3.625% 2022 Notes, 4.750% 2023 Notes, 2.750% 2023 Notes, 2.625% 2024 Notes, 2.750% 2024 Notes, 4.750% 2025 Notes, 4.250% 2025 Notes, 2027 Notes and 2029 Notes are valued based on quoted market prices.

(4) The carrying value of the 5.875% 2020 Notes, 3.400% 2020 Notes, 2021 Notes, 3.625% 2022 Notes, 3.950% 2022 Notes, 4.750% 2023 Notes, 2.750% 2023 Notes, 2.625% 2024 Notes, 2.750% 2024 Notes, 4.250% 2025 Notes, 2027 Notes and 2029 Notes are net of discount of $18.0 million and $18.5 million in the aggregate as of March 31, 2018 and December 31, 2017, respectively.

(5) The estimated fair value and carrying value are exclusive of deferred financing costs of $6.4 million and $7.2 million as of March 31, 2018 and December 31, 2017, respectively.

(6) The estimated fair value and carrying value are exclusive of deferred financing costs of $4.4 million and $4.8 million as of March 31, 2018 and December 31, 2017, respectively.

(7) The estimated fair value and carrying value are exclusive of deferred financing costs of $36.7 million and $37.8 million as of March 31, 2018 and December 31, 2017, respectively.

(8) The estimated fair value and carrying value are exclusive of deferred financing costs of $0.0 million and $0.0 million as of March 31, 2018 and December 31, 2017, respectively.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

March 31, 2018 and 2017

16. Commitments and Contingencies

(a) Construction Commitments

Our properties require periodic investments of capital for tenant-related capital expenditures and for general capital improvements including ground up construction. From time to time in the normal course of our business, we enter into various construction contracts with third parties that may obligate us to make payments. At March 31, 2018, we had open commitments, including amounts reimbursable of approximately $10.1 million, related to construction contracts of approximately $467.8 million.

(b) Legal Proceedings

The Company is involved in legal proceedings arising in the ordinary course of business from time to time.  As of March 31, 2018, the Company is not currently a party to any legal proceedings that it believes would have a material adverse effect on its financial position, results of operations or liquidity nor, to its knowledge, are any such legal proceedings threatened against it.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto appearing elsewhere in this report. This report contains forward-looking statements within the meaning of the federal securities laws. In particular, statements pertaining to our capital resources, expected use of borrowings under our credit facility, potential litigation matters, portfolio performance, leverage policy, acquisition and capital expenditure plans, capital recycling program, returns on invested capital, supply and demand for data center space, capitalization rates, rents to be received in future periods and expected rental rates on new or renewed data center space, as well as our discussion of “Factors Which May Influence Future Results of Operations,” contain forward-looking statements. Likewise, all of our statements regarding anticipated market conditions, demographics and results of operations are forward-looking statements. You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “pro forma,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and discussions which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and that we may not be able to realize. We do not guarantee that the transactions and events described will happen as described or that they will happen at all. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: reduced demand for data centers or decreases in information technology spending; decreased rental rates, increased operating costs or increased vacancy rates; increased competition or available supply of data center space; the suitability of our data centers and data center infrastructure, delays or disruptions in connectivity or availability of power, or failures or breaches of our physical and information security infrastructure or services; our dependence upon significant customers, bankruptcy or insolvency of a major customer or a significant number of smaller customers, or defaults on or non-renewal of leases by customers; breaches of our obligations or restrictions under our contracts with our customers; our inability to successfully develop and lease new properties and development space, and delays or unexpected costs in development of properties; the impact of current global and local economic, credit and market conditions; our inability to retain data center space that we lease or sublease from third parties; difficulty acquiring or operating properties in foreign jurisdictions; our failure to realize the intended benefits from, or disruptions to our plans and operations or unknown or contingent liabilities related to, our recent acquisitions; our failure to successfully integrate and operate acquired or developed properties or businesses; difficulties in identifying properties to acquire and completing acquisitions; risks related to joint venture investments, including as a result of our lack of control of such investments; 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; our failure to obtain necessary debt and equity financing, and our dependence on external sources of capital; financial market fluctuations and changes in foreign currency exchange rates; 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 and goodwill and other intangible asset impairment charges; our inability to manage our growth effectively; losses in excess of our insurance coverage; environmental liabilities and risks related to natural disasters; our inability to comply with rules and regulations applicable to our company; Digital Realty Trust, Inc.'s failure to maintain our status as a REIT for federal income tax purposes; Digital Realty Trust, L.P.'s failure to qualify as a partnership for federal income tax purposes; restrictions on our ability to engage in certain business activities; and changes in local, state, federal and international laws and regulations, including related to taxation, real estate and zoning laws, and increases in real property tax rates.

While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes.

The risks included here are not exhaustive, and additional factors could adversely affect our business and financial performance, including factors and risks included in our annual report on Form 10-K for the year ended December 31, 2017 and in other sections of this report, including under Part II, Item 1A, Risk Factors. 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 we 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. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results.

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Occupancy percentages included in the following discussion, for some of our properties, are calculated based on factors in addition to contractually leased square feet, including available power, required support space and common area.

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Overview

Our company. Digital Realty Trust, Inc. completed its initial public offering of common stock, or our IPO, on November 3, 2004. We believe that we have operated in a manner that has enabled us to qualify, and have elected to be treated, as a REIT under Sections 856 through 860 of the Code. Our Company was formed on March 9, 2004. During the period from our formation until we commenced operations in connection with the completion of our IPO, we did not have any corporate activity other than the issuance of shares of Digital Realty Trust, Inc. common stock in connection with the initial capitalization of the Company. Our Operating Partnership was formed on July 21, 2004.

On September 14, 2017, we completed the acquisition of DuPont Fabros Technology, Inc., in an all-stock merger, which we refer to as the DFT Merger, for equity consideration of approximately $6.2 billion. We believe this transaction expanded our reach with a complementary footprint in top U.S. metropolitan areas while enhancing our ability to meet the growing demand for hyper-scale and public cloud solutions and solidifying our blue-chip customer base. As part of the DFT Merger, we acquired 15 data centers, 14 of which are located in the United States and one is located in Canada.

Business and strategy. Our primary business objectives are to maximize: (i) sustainable long-term growth in earnings and funds from operations per share and unit, (ii) cash flow and returns to our stockholders and our operating partnership’s unitholders through the payment of distributions and (iii) return on invested capital. We expect to accomplish our objectives by achieving superior risk-adjusted returns, prudently allocating capital, diversifying our product offerings and driving revenue growth and operating efficiencies. We plan to focus on our core business of investing in and developing and operating data centers. A significant component of our current and future internal growth is anticipated through the development of our existing space held for development, acquisition of land for future development and acquisition of new properties. We target high quality, strategically located properties containing the physical and connectivity infrastructure that supports the applications and operations of data center and technology industry customers and properties that may be developed for such use. Most of our data center properties contain fully redundant electrical supply systems, multiple power feeds, above-standard cooling systems, raised floor areas, extensive in-building communications cabling and high-level security systems. We focus exclusively on owning, acquiring, developing and operating data centers because we believe that the growth in data center demand and the technology-related real estate industry generally will continue to outpace the overall economy.

As of March 31, 2018, our portfolio included 203 data centers, including four data centers held-for-sale and 18 data centers held as investments in unconsolidated joint ventures, with approximately 32.8 million rentable square feet including approximately 3.6 million square feet of space under active development and approximately 1.5 million square feet of space held for development. The 18 data centers held as investments in unconsolidated joint ventures have an aggregate of approximately 2.5 million rentable square feet. The 20 parcels of developable land we own as of March 31, 2018 comprised approximately 468 acres. At March 31, 2018, approximately 3.6 million square feet was under construction for Turn-Key Flex^® and Powered Base Building^® products, all of which are expected to be income producing on or after completion, in seven U.S. metropolitan areas, three European metropolitan areas, two Australian metropolitan areas, two Asian metropolitan areas and one Canadian metropolitan area, consisting of approximately 2.3 million square feet of base building construction and 1.3 million square feet of data center construction.

We have developed detailed, standardized procedures for evaluating new real estate investments to ensure that they meet our financial, technical and other criteria. We expect to continue to acquire additional assets as part of our growth strategy. We intend to aggressively manage and lease our assets to increase their cash flow. We may continue to build out our development portfolio when justified by anticipated demand and returns.

We may acquire properties subject to existing mortgage financing and other indebtedness or we may incur new indebtedness in connection with acquiring or refinancing these properties. Debt service on such indebtedness will have a priority over any cash dividends with respect to Digital Realty Trust, Inc.’s common stock and preferred stock. We are committed to maintaining a conservative capital structure. We target a debt-to-Adjusted EBITDA ratio at or less than 5.5x, fixed charge coverage of greater than three times, and floating rate debt at less than 20% of total outstanding debt. In addition, we strive to maintain a well-laddered debt maturity schedule, and we seek to maximize the menu of our available sources of capital, while minimizing the cost.

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Revenue base. As of March 31, 2018, we operated 203 data centers through our Operating Partnership, including four data centers held-for-sale and 18 data centers held as investments in unconsolidated joint ventures and developable land. These data centers are mainly located throughout North America, with 38 located in Europe, seven in Asia and five in Australia.

The following table presents an overview of our portfolio of data centers, including the four data centers held-for-sale and 18 data centers held as investments in unconsolidated joint ventures, and developable land, based on information as of March 31, 2018.

Metropolitan Area	Data Center Buildings	Net Rentable Square Feet (1)	Space Under Active Development (2)	Space Held for Development (3)
North America
Northern Virginia	30	4,935,774	1,395,350	90,998
Chicago	10	2,839,108	539,194	197,160
New York	12	1,907,564	34,821	278,170
Silicon Valley	19	2,185,341	65,680	—
Dallas	21	3,360,198	69,359	80,793
Phoenix	4	990,385	—	108,926
San Francisco	5	989,743	13,500	—
Atlanta	5	775,606	—	313,581
Los Angeles	4	818,479	—	50,649
Boston	5	534,249	—	—
Houston	6	392,816	—	13,969
Toronto, Canada	3	188,066	711,000	—
Denver	2	371,500	—	—
Austin	1	85,688	—	—
Miami	2	205,797	20,517	—
Portland	1	48,574	—	—
Minneapolis / St. Paul	2	406,929	—	—
Charlotte	3	95,499	—	—
Seattle	1	40,480	—	75,466
North America Total	136	21,171,796	2,849,421	1,209,712
Europe
London, United Kingdom	16	1,400,718	171,471	55,059
Amsterdam, Netherlands	9	471,337	—	160,044
Dublin, Ireland	5	307,775	49,051	—
Frankfurt, Germany	2	83,981	83,818	—
Paris, France	3	185,994	—	—
Manchester, United Kingdom	1	38,016	—	—
Geneva, Switzerland	1	59,190	—	—
Europe Total	37	2,547,011	304,340	215,103
Asia Pacific
Singapore	2	465,519	38,670	36,449
Melbourne, Australia	2	125,329	21,241	—
Sydney, Australia	3	138,207	176,150	—
Osaka, Japan	1	—	239,999	—
Asia Pacific Total	8	729,055	476,060	36,449

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Metropolitan Area	Data Center Buildings	Net Rentable Square Feet (1)	Space Under Active Development (2)	Space Held for Development (3)
Non-Data Center Properties	—	278,068	—	—
Managed Unconsolidated Joint Ventures
Northern Virginia	4	546,572	—	—
Hong Kong	1	114,883	—	71,417
Silicon Valley	4	326,305	—	—
Dallas	3	319,876	—	—
New York	1	108,336	—	—
	13	1,415,972	—	71,417
Non-Managed Unconsolidated Joint Ventures
Seattle	2	451,369	—	—
Tokyo, Japan	2	430,277	—	—
Osaka, Japan	1	92,087	—	—
	5	973,733	—	—
Total, excluding held for sale	199	27,115,635	3,629,821	1,532,681
Held for Sale	4	490,936	—	—
Total	203	27,606,571	3,629,821	1,532,681

(1) Current net rentable square feet as of March 31, 2018, which represents the current square feet under lease as specified in the applicable lease agreements plus management’s estimate of space available for lease based on engineering drawings. Includes customers’ proportional share of common areas but excludes space under active development and space held for development.

(2) Space under active development includes current base building and data center projects in progress, and excludes space held for development. For additional information on the current and future investment for space under active development, see “—Liquidity and Capital Resources of the Operating Partnership—Construction”.

(3) Space held for development includes space held for future data center development, and excludes space under active development. For additional information on the current investment for space held for development, see “—Liquidity and Capital Resources of the Operating Partnership—Construction”.

As of March 31, 2018, our portfolio, including the 18 data centers held as investments in unconsolidated joint ventures, were approximately 89.2% leased excluding approximately 3.6 million square feet of space under active development and approximately 1.5 million square feet of space held for development. Due to the capital-intensive and long-term nature of the operations being supported, our lease terms are generally longer than standard commercial leases. As of March 31, 2018, our average remaining lease term is approximately five years. Our scheduled lease expirations through December 31, 2019 are 19.6% of rentable square feet excluding month-to-month leases, space under active development and space held for development as of March 31, 2018.

Factors Which May Influence Future Results of Operations

Global market and economic conditions. General economic conditions and the cost and availability of capital may be adversely affected in some or all of the metropolitan areas in which we own properties and conduct our operations. In June 2016, a majority of voters in the United Kingdom elected to withdraw from the European Union in a national referendum. The terms of any withdrawal are subject to ongoing negotiations. Nevertheless, the referendum has created significant uncertainty about the future relationship between the United Kingdom and the European Union, and has given rise to calls for the governments of other European Union member states to consider withdrawal. Instability in the U.S., European, Asia Pacific

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and other international financial markets and economies may adversely affect our ability, and the ability of our customers, to replace or renew maturing liabilities on a timely basis, access the capital markets to meet liquidity and capital expenditure requirements and may result in adverse effects on our, and our customers’, financial condition and results of operations.

In addition, our access to funds under our global revolving credit facility depends on the ability of the lenders that are parties to such facilities to meet their funding commitments to us. We cannot assure you that long-term disruptions in the global economy and the return of tighter credit conditions among, and potential failures or nationalizations of, third party financial institutions as a result of such disruptions will not have an adverse effect on our lenders. If our lenders are not able to meet their funding commitments to us, our business, results of operations, cash flows and financial condition could be adversely affected.

If we do not have sufficient cash flow to continue operating our business and are unable to borrow additional funds, access our existing lines of credit or raise equity or debt capital, we may need to source alternative ways to increase our liquidity. Such alternatives may include, without limitation, curtailing development activity, disposing of one or more of our properties possibly on disadvantageous terms or entering into or renewing leases on less favorable terms than we otherwise would.

Foreign currency exchange risk.For the three months ended March 31, 2018 and 2017, we had foreign operations in the United Kingdom, Ireland, France, the Netherlands, Germany, Switzerland, Canada, Singapore, Australia, Japan and Hong Kong, and, as such, are subject to risk from the effects of exchange rate movements of foreign currencies, which may affect future costs and cash flows. Our foreign operations are conducted in the British pound sterling, Euro, Canadian dollar, Singapore dollar, Australian dollar, Japanese Yen and the Hong Kong dollar. Our primary currency exposures are to the British pound sterling, the Euro and the Singapore dollar. The possible exit of the United Kingdom (or any other country) from the European Union, or prolonged periods of uncertainty relating to any of these possibilities, could result in increased foreign currency exchange volatility. We attempt to mitigate a portion of the risk of currency fluctuation by financing our investments in the local currency denominations, although there can be no assurance that this will be effective. As a result, changes in the relation of any such foreign currency to U.S. dollars may affect our revenues, operating margins and distributions and may also affect the book value of our assets, the book value of our debt and the amount of stockholders’ equity.

Rental income. The amount of rental income generated by the data centers in our portfolio depends on several factors, including our ability to maintain or improve the occupancy rates of currently leased space and to lease currently available space and space available from lease terminations. Excluding approximately 3.6 million square feet of space under active development and approximately 1.5 million square feet of space held for development as of March 31, 2018, the occupancy rate of our portfolio, including the 18 properties held as investments in unconsolidated joint ventures, was approximately 89.2% of our net rentable square feet.

As of March 31, 2018, we had over 2,300 customers in our data center portfolio, including the 13 data centers held in our managed portfolio of unconsolidated joint ventures. As of March 31, 2018, approximately 91% of our leases (on a rentable square footage basis) contained base rent escalations that were either fixed (generally ranging from 2% to 4%) or indexed based on a consumer price index or other similar inflation-related index. We cannot assure you that these escalations will cover any increases in our costs or will otherwise keep rental rates at or above market rates.

The amount of rental income generated by us also depends on maintaining or increasing rental rates at our properties, which in turn depends on several factors, including supply and demand and market rates for data center space. Included in our approximately 25.2 million net rentable square feet, excluding space under active development and space held for development and 18 data centers held as investments in unconsolidated joint ventures, at March 31, 2018 is approximately 1.3 million square feet of data center space with extensive installed tenant improvements available for lease. Our Turn-Key Flex^® product is an effective solution for customers who prefer to utilize a partner with the expertise or capital budget to provide extensive data center infrastructure and security. Our expertise in data center construction and operations enables us to lease space to these customers at a premium over other uses. In addition, as of March 31, 2018, we had approximately 3.6 million square feet of space under active development and approximately 1.5 million square feet of space held for development, or approximately 16% of the total rentable space in our portfolio, including the 18 data centers held as investments in unconsolidated joint ventures. Our ability to grow earnings depends in part on our ability to develop space and lease development space at favorable rates, which we may not be able to obtain. Development space requires significant capital investment in order to develop data center facilities that are ready for use and, in addition, we may require additional time or encounter delays in securing tenants for development space. We may purchase additional vacant properties and properties with vacant development space in the future. We will require additional capital to finance our development activities, which may not be available or may not be available on terms acceptable to us, including as a result of the conditions described above under “Global market and economic conditions.”

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In addition, the timing between when we sign a new lease with a customer and when that lease commences and we begin to generate rental income may be significant and may not be easily predictable. Certain leases may provide for staggered commencement dates for additional space, the timing of which may be delayed significantly.

Economic downturns, including as a result of the conditions described above under “Global market and economic conditions,” or regional downturns affecting our metropolitan areas or downturns in the data center industry that impair our ability to lease or renew or re-lease space, or otherwise reduce returns on our investments or the ability of our customers to fulfill their lease commitments, as in the case of tenant bankruptcies, could adversely affect our ability to maintain or increase rental rates at our properties.

Scheduled lease expirations. Our ability to re-lease expiring space at rental rates equal to or in excess of current rental rates will impact our results of operations. In addition to approximately 2.8 million square feet of available space in our portfolio, which excludes approximately 3.6 million square feet of space under active development and approximately 1.5 million square feet of space held for development as of March 31, 2018 and the five data centers held as investments in our non-managed unconsolidated joint ventures, leases representing approximately 5.7% and 13.9% of the net rentable square footage of our portfolio are scheduled to expire during the nine months ending December 31, 2018 and the year ending December 31, 2019, respectively.

During the three months ended March 31, 2018, we signed new leases totaling approximately 0.8 million square feet of space and renewal leases totaling approximately 1.7 million square feet of space. The following table summarizes our leasing activity in the three months ended March 31, 2018:

	Rentable Square Feet (1)	Expiring Rates (2)		New Rates (2)		Rental Rate Changes		TI’s/Lease Commissions Per Square Foot		Weighted  Average Lease Terms (years)
Leasing Activity (3)(4)
Renewals Signed
Turn-Key Flex ®	220,188	$	143.07	$	148.89	4.1	%	$	7.78	5.0
Powered Base Building ®	6,381	$	36.04	$	37.47	4.0	%	$	1.42	7.9
Colocation	75,887	$	303.64	$	314.31	3.5	%	$	—	1.1
Non-technical	19,093	$	27.87	$	30.51	9.5	%	$	1.87	4.5
New Leases Signed (5)
Turn-Key Flex ®	249,664	—		$	169.86	—		$	69.42	7.4
Powered Base Building ®	198,569	—		$	24.29	—		$	2.16	10.0
Colocation	21,369	—		$	293.64	—		$	30.53	1.9
Non-technical	3,982	—		$	36.54	—		$	5.46	6.4
Leasing Activity Summary
Turn-Key Flex ®	469,852	—		$	160.03	—		—
Powered Base Building ®	204,950	—		$	24.70	—		—
Colocation	97,256	—		$	309.77	—		—
Non-technical	23,075	—		$	31.55	—		—

(1) 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.

(2) Rental rates represent annual estimated cash rent per rentable square foot adjusted for straight-line rents in accordance with GAAP. GAAP rental rates are inclusive of tenant concessions, if any.

(3) Excludes short-term leases.

(4) Commencement dates for the leases signed range from 2018 to 2019.

(5) Includes leases signed for new and re-leased space.

Our ability to re-lease or renew expiring space at rental rates equal to or in excess of current rental rates will impact our results of operations. We continue to see strong demand in most of our key metropolitan areas for data center space and, subject to the supply of available data center space in these metropolitan areas, expect the rental rates we are likely to achieve on re-leased or renewed data center space leases for 2018 expirations on an average aggregate basis will generally be higher than the rates currently being paid for the same space on a GAAP basis and slightly down on a cash basis. For the three months ended

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March 31, 2018, rents on renewed space increased by an average of 4.1% on a GAAP basis on our Turn-Key Flex^® space compared to the expiring rents and increased by an average of 4.0% on a GAAP basis on our Powered Base Building^® space compared to the expiring rents. Our past performance may not be indicative of future results, and we cannot assure you that leases will be renewed or that our data centers will be re-leased at all or at rental rates equal to or above the current average rental rates. Further, re-leased/renewed rental rates in a particular metropolitan area may not be consistent with rental rates across our portfolio as a whole and may fluctuate from one period to another due to a number of factors, including local real estate conditions, local supply and demand for data center space, competition from other data center developers or operators, the condition of the property and whether the property, or space within the property, has been developed.

Geographic concentration. We depend on the market for data centers in specific geographic regions and significant changes in these regional metropolitan areas can impact our future results. As of March 31, 2018, our portfolio, including the 18 data centers held as investments in unconsolidated joint ventures, was geographically concentrated in the following metropolitan areas.

Metropolitan Area	Percentage of March 31, 2018 total annualized rent (1)
Northern Virginia	21.9	%
Chicago	12.6	%
London, United Kingdom	9.6	%
Silicon Valley	9.1	%
New York	8.9	%
Dallas	8.1	%
Phoenix	4.0	%
Singapore	3.2	%
San Francisco	3.2	%
Seattle	2.5	%
Atlanta	2.4	%
Amsterdam, Netherlands	2.0	%
Los Angeles	1.9	%
Other	10.6	%
Total	100.0	%

(1) Annualized rent is monthly contractual rent (defined as cash base rent before abatements) under existing leases as of March 31, 2018 multiplied by 12. The aggregate amount of abatements for the three months ended March 31, 2018 was approximately $9.0 million.

Operating expenses. Our operating expenses generally consist of utilities, property and ad valorem taxes, property management fees, insurance and site maintenance costs, as well as rental expenses on our ground and building leases. In particular, our buildings require significant power to support the data center operations contained in them. Many of our leases contain provisions under which the tenants reimburse us for all or a portion of property operating expenses and real estate taxes incurred by us. However, we generally are not entitled to reimbursement of property operating expenses, other than utility expense, and real estate taxes under our leases for Turn-Key Flex® facilities. We also incur general and administrative expenses, including expenses relating to our asset management function, as well as significant legal, accounting and other expenses related to corporate governance, Securities Exchange Commission, or the SEC, reporting and compliance with the various provisions of the Sarbanes-Oxley Act. Increases or decreases in such operating expenses will impact our overall performance. We expect to incur additional operating expenses as we continue to expand.

Climate change legislation. In June 2009, the U.S. House of Representatives approved comprehensive clean energy and climate change legislation intended to cut greenhouse gas, or GHG, emissions, via a cap-and-trade program. The U.S. Senate did not subsequently pass similar legislation. New climate change legislation was introduced in the U.S. Senate in 2013, but significant opposition to federal climate change legislation exists.

In the absence of comprehensive federal climate change legislation, over the past several years, regulatory agencies, primarily the U.S. Environmental Protection Agency, or EPA, and states took the lead in regulating GHG emissions in the U.S.

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Under the Obama administration, the EPA moved aggressively to regulate GHG emissions from automobiles and large stationary sources, including electricity producers, using its own authority under the Clean Air Act. The Trump administration has signaled that it intends to eliminate or modify certain of the EPA’s GHG emissions regulations and refocus the EPA’s mission away from such regulation.

The EPA made an endangerment finding in 2009 that allows it to create regulations imposing emissions reporting, permitting, control technology installation, and monitoring requirements applicable to certain emitters of GHGs, including facilities that provide electricity to our data centers, although the materiality of the impacts will not be fully known until all regulations are finalized and legal challenges are resolved. Under the Obama administration, the EPA finalized rules imposing permitting and control technology requirements upon certain newly-constructed or modified facilities which emit GHGs under the Clean Air Act New Source Review Prevention of Significant Deterioration, or NSR PSD, and Title V permitting programs. As a result, newly-issued NSR PSD and Title V permits for new or modified electricity generating units (EGUs) and other facilities may need to address GHG emissions, including by requiring the installation of “Best Available Control Technology.” The EPA implemented in December 2015 the “Clean Power Plan” regulating carbon dioxide (CO2) emissions from new and existing coal-fired and natural gas EGUs. Existing EGUs are subject to statewide CO2 emissions reduction targets, an effort designed to achieve a thirty-two percent reduction in nationwide existing EGU CO2 emissions by 2030 (in comparison to 2005 levels). New, modified, and reconstructed EGUs are subject to “New Source Performance Standards” that include both technological requirements and numeric emission limits. However, twenty-four states and a number of industry groups challenged the Clean Power Plan in federal court, and in February 2016 the U.S. Supreme Court issued a stay of the Clean Power Plan until the legal challenges have been decided. In March 2017, President Trump ordered the EPA to review and if appropriate revise or rescind the Clean Power Plan, and the EPA initiated this review in April 2017. Separately, the EPA’s GHG “reporting rule” requires that certain emitters, including electricity generators, monitor and report GHG emissions. The Trump administration may seek to revise or reverse these regulations.

As a result, states may drive near-term regulation to reduce GHG emissions in the United States. At the state level, California implemented a GHG cap-and-trade program that began imposing compliance obligations on industrial sectors, including electricity generators and importers, in January 2013. In September 2016, California adopted legislation calling for a further reduction in GHG emissions to 40% below 1990 levels by 2030, and in July 2017, California extended its cap-and-trade program through 2030. As another example of state action, Washington began implementing in 2017 a cap on GHG emissions, and the cap will decrease over time.

Outside the United States, the European Union, or EU (including the United Kingdom), has been operating since 2005 under a cap-and-trade program, which directly affects the largest emitters of GHGs, including electricity producers from whom we purchase power, and the EU has taken a number of other climate change-related initiatives, including a directive targeted at improving energy efficiency (which introduces energy efficiency auditing requirements).  The Paris Agreement, which was adopted by the United States and 194 other countries and looks to prevent global average temperatures from increasing by more than 2 degrees Celsius above preindustrial levels officially went into force on November 4, 2016. President Trump announced in June 2017 that he will initiate the process to withdraw the United States from the Paris Agreement; however, a number of states have formed groups supporting the Paris Agreement. National legislation may also be implemented independently by members of the EU.  For example, in the United Kingdom, the implementation of the CRC Energy Efficiency Scheme introduced a mandatory reporting and pricing scheme that is designed to incentivize energy efficiency and cut emissions by large energy users. It is not yet clear how Brexit will impact the United Kingdom’s (or the EU’s) approach to climate change regulation. In Canada, the first compliance period under Ontario’s GHG cap-and-trade program began in January 2017. Climate change regulations are in various stages of implementation in other nations as well, including nations where we operate, such as Australia, where a GHG emissions cap was implemented in 2016.

The cost of electric power comprises a significant component of our operating expenses. Any additional taxation or regulation of energy use, including as a result of (i) new legislation that Congress may pass, (ii) the regulations that the EPA has proposed or finalized, (iii) regulations under legislation that states have passed or may pass, or (iv) any further legislation or regulations in the EU or other regions where we operate could significantly increase our costs, and we may not be able to effectively pass all of these costs on to our customers. These matters could adversely impact our business, results of operations, or financial condition.

Interest rates. As of March 31, 2018, we had approximately $1.0 billion of variable rate debt subject to interest rate swap agreements on certain tranches of our unsecured term loans, along with $958.5 million, $512.1 million and $154.1 million of variable rate debt that was outstanding on the global revolving credit facility, the unswapped portion of the unsecured term loans and the floating rate notes due 2019, or the 2019 Notes, respectively. The availability of debt and equity capital may decrease or be on unfavorable terms as a result of the circumstances described above under “Global market and economic conditions” or other factors. The effects on commercial real estate mortgages, if available, include, but may not be limited to:

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higher loan spreads, tightened loan covenants, reduced loan-to-value ratios resulting in lower borrower proceeds and higher principal payments. Potential future increases in interest rates and credit spreads may increase our interest expense and fixed charges and negatively affect our financial condition and results of operations, potentially impacting our future access to the debt and equity capital markets. Increased interest rates may also increase the risk that the counterparties to our swap agreements will default on their obligations, which could further increase our interest expense. If we cannot obtain capital from third party sources, we may not be able to acquire or develop properties when strategic opportunities exist, satisfy our debt service obligations or pay the cash dividends to Digital Realty Trust, Inc.’s stockholders necessary to maintain its qualification as a REIT.

Demand for data center space. Our portfolio consists primarily of data centers. A decrease in the demand for, or increase in supply of, data center space, Internet gateway facilities or other technology-related real estate would have a greater adverse effect on our business and financial condition than if we owned a portfolio with a more diversified customer base or less specialized use. We have invested in building out additional inventory primarily in what we anticipate will be our active major metropolitan areas prior to having executed leases with respect to this space. We believe that demand in key metropolitan areas such as Northern Virginia, Dallas and Chicago is largely in line with supply. We also continue to see strong demand in other key metropolitan areas across our portfolio. However, until this inventory is leased up, which will depend on a number of factors, including available data center space in these metropolitan areas, our return on invested capital is negatively impacted. Our development activities make us particularly susceptible to general economic slowdowns, including recessions and the other circumstances described above under “Global market and economic conditions,” as well as adverse developments in the corporate data center, Internet and data communications and broader technology industries. Any such slowdown or adverse development could lead to reduced corporate IT spending or reduced demand for data center space. Reduced demand could also result from business relocations, including to metropolitan areas that we do not currently serve. Changes in industry practice or in technology, such as virtualization technology, more efficient computing or networking devices, or devices that require higher power densities than today’s devices, could also reduce demand for the physical data center space we provide or make the tenant improvements in our facilities obsolete or in need of significant upgrades to remain viable. In addition, the development of new technologies, the adoption of new industry standards or other factors could render many of our customers’ current products and services obsolete or unmarketable and contribute to a downturn in their businesses, thereby increasing the likelihood that they default under their leases, become insolvent or file for bankruptcy. In addition, demand for data center space, or the rates at which we lease space, may be adversely impacted either across our portfolio or in specific metropolitan areas as a result of an increase in the number of competitors, or the amount of space being offered in our metropolitan areas and other metropolitan areas by our competitors.

Critical Accounting Policies

Our discussion and analysis of our financial condition and results of operations are based upon our condensed consolidated financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP. The preparation of these financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses in the reporting period. Our actual results may differ from these estimates. We have provided a summary of our significant accounting policies in Item 1, Note 2 “Summary of Significant Accounting Policies” in the Notes to Condensed Consolidated Financial Statements. We describe below those accounting policies that require material subjective or complex judgments and that have the most significant impact on our financial condition and consolidated results of operations. Our management evaluates these estimates on an ongoing basis, based upon information currently available and on various assumptions management believes are reasonable as of the date on the front cover of this report.

Investments in Real Estate

Acquisition of real estate. The price that we pay to acquire a property is impacted by many factors including the condition of the property and improvements, the occupancy of the building, the term and rate of in-place leases, the creditworthiness of the customers, favorable or unfavorable financing, above- or below-market ground leases and numerous other factors.

Accordingly, we are required to make subjective assessments to allocate the purchase price paid to acquire investments in real estate among the identifiable assets including intangibles and liabilities assumed based on our estimate of the fair value of such assets and liabilities. This includes determining the value of the property and improvements, land, ground leases, if any, and tenant improvements. Additionally, we evaluate the value of in-place leases on occupancy and market rent, the value of the tenant relationships, the value (or negative value) of above (or below) market leases, any debt or deferred taxes assumed from the seller or loans made by the seller to us and any building leases assumed from the seller. Each of these estimates requires a great deal of judgment and some of the estimates involve complex calculations. These allocation assessments have a direct impact on our results of operations. For example, if we were to allocate more value to land, there would be no depreciation with respect to such amount. If we were to allocate more value to the property as opposed to allocating to the value of in-place

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tenant leases, this amount would be recognized as an expense over a much longer period of time. This potential effect occurs because the amounts allocated to property are depreciated over the estimated lives of the property whereas amounts allocated to in-place tenant leases are amortized over the estimated term (including renewal and extension assumptions) of the leases. Additionally, the amortization of the value (or negative value) assigned to above (or below) market rate leases is recorded as an adjustment to rental revenue as compared to amortization of the value of in-place tenant leases and tenant relationships, which is included in depreciation and amortization in our consolidated income statements.

From time to time, we will receive offers from third parties to purchase our properties, either solicited or unsolicited. For those offers that we accept, the prospective buyers will usually require a due diligence period before consummation of the transactions. It is not unusual for matters to arise that result in the withdrawal or rejection of the offer during this process. We classify real estate as “held for sale” when all criteria under the GAAP guidance have been met.

Useful lives of assets. We are required to make subjective assessments as to the useful lives of our properties for purposes of determining the amount of depreciation to record on an annual basis with respect to our investments in real estate. These assessments have a direct impact on our net income because if we were to shorten the expected useful lives of our investments in real estate we would depreciate such investments over fewer years, resulting in more depreciation expense and lower net income on an annual basis.

Asset impairment evaluation. We review each of our properties for indicators that its carrying amount may not be recoverable. Examples of such indicators may include a significant decrease in the market price of the property, a change in the expected holding period for the property, a significant adverse change in how the property is being used or expected to be used based on the underwriting at the time of acquisition, an accumulation of costs significantly in excess of the amount originally expected for the acquisition or development of the property, or a history of operating or cash flow losses of the property. When such impairment indicators exist, we review an estimate of the future undiscounted net cash flows (excluding interest charges) expected to result from the real estate investment’s use and eventual disposition and compare that estimate to the carrying value of the property. We consider factors such as future operating income, trends and prospects, as well as the effects of leasing demand, competition and other factors. If our future undiscounted net cash flow evaluation indicates that we are unable to recover the carrying value of a real estate investment, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property. These losses have a direct impact on our net income because recording an impairment loss results in an immediate negative adjustment to net income. The evaluation of anticipated cash flows is highly subjective and is based in part on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results in future periods. Since cash flows on properties considered to be long-lived assets to be held and used are considered on an undiscounted basis to determine whether the carrying value of a property is recoverable, our strategy of holding properties over the long-term directly decreases the likelihood of their carrying values not being recoverable and therefore requiring the recording of an impairment loss. If our strategy changes or market conditions otherwise dictate an earlier sale date, an impairment loss may be recognized and such loss could be material. If we determine that the asset fails the recoverability test, the affected assets must be reduced to their fair value.

We generally estimate the fair value of rental properties utilizing a discounted cash flow analysis that includes projections of future revenues, expenses and capital improvement costs that a market participant would use based on the highest and best use of the asset, which is similar to the income approach that is commonly utilized by appraisers. In certain cases, we may supplement this analysis by obtaining outside broker opinions of value.

Goodwill impairment evaluation. We perform an annual impairment test for goodwill and between annual tests, we evaluate goodwill for impairment whenever events or changes in circumstances occur that would more likely than not reduce the fair value of a reporting unit below its carrying value.  In our impairment tests of goodwill, we first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value.  If based on this assessment, we determine that the fair value of the reporting unit is not less than its carrying value, then performing the additional two-step impairment test is unnecessary. If our qualitative assessment indicates that goodwill impairment is more likely than not, we perform a two-step impairment test. We test goodwill for impairment under the two-step impairment test by first comparing the book value of net assets including goodwill to the fair value of the reporting unit. If the fair value is determined to be less than the book value of the net assets, including goodwill, a second step is performed to compute the amount of impairment as the difference between the implied fair value of goodwill and its carrying value. We estimate the fair value of the reporting units using discounted cash flows. If the carrying value of goodwill exceeds its implied fair value, an impairment charge is recognized. 

Revenue Recognition

The majority of our revenue is derived from lease arrangements, which we account for in accordance with “Leases (Topic 840)”. We account for the non-lease components within our lease arrangements, as well as other sources of revenue, in accordance

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with “Revenue from Contracts with Customers (Topic 606)”. Revenue recognized as a result of applying Topic 840 was 97% and Topic 606 was 3% of total operating revenue for the quarter ended March 31, 2018.

Our leases are classified as operating leases and minimum rents are recognized on a straight-line basis over the terms of the leases, which may span multiple years. The excess of rents recognized over amounts contractually due pursuant to the underlying leases is included in deferred rent in the accompanying condensed consolidated balance sheets and contractually due but unpaid rents are included in accounts and other receivables.

Tenant reimbursements for real estate taxes, common area maintenance, and other recoverable costs under our leases are recognized in the period that the expenses are incurred. Lease termination fees are recognized over the remaining term of the lease, effective as of the date the lease modification is finalized, assuming collection is not considered doubtful. As discussed above, we recognize amortization of the value of acquired above or below-market tenant leases as a reduction of rental revenue in the case of above-market leases or an increase to rental revenue in the case of below-market leases.

We must make subjective estimates as to when our revenue is earned and the collectability of our accounts receivable related to minimum rent, deferred rent, expense reimbursements, lease termination fees and other income. We specifically analyze accounts receivable and historical bad debts, customer concentrations, customer creditworthiness and current economic trends when evaluating the adequacy of the allowance for bad debts. These estimates have a direct impact on our net revenue because a higher bad debt allowance would result in lower net revenue, and recognizing rental revenue as earned in one period versus another would result in higher or lower net revenue for a particular period.

Recently Issued Accounting Pronouncements

Please refer to Item 1, Note 2(q) “Recent Accounting Pronouncements”in the notes to the condensed consolidated financial statements.

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Results of Operations

The discussion below relates to our financial condition and results of operations for the three months ended March 31, 2018 and 2017. A summary of our operating results for the three months ended March 31, 2018 and 2017 is as follows (in thousands).

	Three Months Ended March 31,
	2018			2017
Income Statement Data:
Total operating revenues	$	744,368		$	550,569
Total operating expenses	(600,555		)	(413,286		)
Operating income	143,813			137,283
Other expenses, net	(33,718		)	(52,720		)
Net income	$	110,095		$	84,563

Our property portfolio has experienced consistent and significant growth since the first property acquisition in January 2002. As a result of this growth, our period-to-period comparison of our financial performance focuses on the impact on our revenues and expenses on a stabilized portfolio basis. Our stabilized portfolio includes properties owned as of December 31, 2016 with less than 5% of total rentable square feet under development and excludes properties that were undergoing, or were expected to undergo, development activities in 2017-2018 and properties sold or contributed to joint ventures. Our pre-stabilized pool includes the results of the newly acquired operating properties, newly delivered properties that were previously under development and properties acquired as part of the DFT Merger in September 2017.

Comparison of the Three Months Ended March 31, 2018 to the Three Months Ended March 31, 2017

Portfolio

As of March 31, 2018, our portfolio consisted of 203 data centers, including four data centers held-for-sale and 18 data centers held as investments in unconsolidated joint ventures, with an aggregate of 32.8 million rentable square feet including 3.6 million square feet of space under active development and 1.5 million square feet of space held for development compared to a portfolio consisting of 187 data centers, including three data centers held-for-sale and 15 data centers held as investments in unconsolidated joint ventures, with an aggregate of 26.1 million rentable square feet including 1.5 million square feet of space under active development and 1.7 million square feet of space held for development as of March 31, 2017.

Revenues

Total operating revenues for the three months ended March 31, 2018 and 2017 were as follows (in thousands):

	Three Months Ended March 31,
	2018		2017		Change
Rental and other services	$	592,298	$	461,351	$	130,947
Tenant reimbursements	150,079		87,288		62,791
Fee income	1,133		1,895		(762		)
Other	858		35		823
Total operating revenues	$	744,368	$	550,569	$	193,799

The following table shows revenues for the three months ended March 31, 2018 and 2017 for stabilized properties and pre-stabilized properties and other (all other properties) (in thousands). Revenue totals for pre-stabilized and other include results from properties that have not yet met the definition of stabilized and properties that are classified as held for sale or were sold during the period.

	Stabilized									Pre-Stabilized and Other
	Three Months Ended March 31,									Three Months Ended March 31,
	2018		2017		$ Change			% Change		2018		2017		Change
Rental and other services	$	352,309	$	345,163	$	7,146		2.1	%	$	239,989	$	116,188	$	123,801
Tenant reimbursements	59,820		59,944		(124		)	(0.2	)%	90,259		27,344		62,915
	$	412,129	$	405,107	$	7,022		1.7	%	$	330,248	$	143,532	$	186,716

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Stabilized rental and other services revenue increased $7.1 million for the three months ended March 31, 2018 compared to the same period in 2017 primarily as a result of new leasing at our properties during the twelve months ended March 31, 2018, the largest of which was for space at 350 E. Cermak Road, 1-11 Templar Road, 1725 Comstock Street and 2121 S. Price Road, offset by expiring leases at certain properties in the stabilized portfolio. Stabilized tenant reimbursement revenue remained flat for the three months ended March 31, 2018 compared to the same period in 2017.

Pre-stabilized and other revenues increased for the three months ended March 31, 2018 compared to the same period in 2017 primarily as a result of the properties acquired in the DFT Merger, which contributed approximately $102.9 million and $54.1 million to the rental and other services revenue and tenant reimbursement increases, respectively, along with a contribution of $7.8 million to rental and other services revenue from 505 North Railroad Avenue, which was acquired in December 2017, and new leases at our properties during the twelve months ended March 31, 2018. These increases were offset partially by a decrease in revenues as a result of properties sold during the twelve months ended March 31, 2018.

Operating Expenses and Interest Expense

Operating expenses and interest expense during the three months ended March 31, 2018 and 2017 were as follows (in thousands):

	Three Months Ended March 31,
	2018		2017		Change
Rental property operating and maintenance	$	225,640	$	169,339	$	56,301
Property taxes	35,263		26,919		8,344
Insurance	3,731		2,592		1,139
Depreciation and amortization	294,789		176,466		118,323
General and administrative	36,523		34,647		1,876
Transaction and integration expenses	4,178		3,323		855
Other	431		—		431
Total operating expenses	$	600,555	$	413,286	$	187,269
Interest expense	$	76,985	$	55,450	$	21,535

The following table shows property level expenses for the three months ended March 31, 2018 and 2017 for stabilized properties and pre-stabilized properties and other (all other properties) (in thousands). Expense totals for pre-stabilized and other include results from properties that have not yet met the definition of stabilized and properties that are classified as held for sale or were sold during the period. 

	Stabilized								Pre-Stabilized and Other
	Three Months Ended March 31,								Three Months Ended March 31,
	2018		2017		$ Change		% Change		2018		2017		Change
Rental property operating and maintenance	$	120,807	$	119,763	$	1,044	0.9	%	$	104,833	$	49,576	$	55,257
Property taxes	20,175		18,604		1,571		8.4	%	15,088		8,315		6,773
Insurance	2,209		2,068		141		6.8	%	1,522		524		998
	$	143,191	$	140,435	$	2,756	2.0	%	$	121,443	$	58,415	$	63,028

Stabilized rental property operating and maintenance expenses increased approximately $1.0 million in the three months ended March 31, 2018 compared to the same period in 2017. The increase was primarily related to higher utility costs offset by reduced labor costs and cost containment measures across the portfolio.

Stabilized property taxes increased by approximately $1.6 million in the three months ended March 31, 2018. The increase was due to higher tax assessments, primarily at properties in London and Northern Virginia.

Pre-stabilized and other rental property operating and maintenance expenses increased by approximately $55.3 million in the three months ended March 31, 2018 compared to the same period in 2017 primarily as a result of the properties acquired in the DFT Merger, which contributed approximately $43.6 million.

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Pre-stabilized and other property tax expense increased approximately $6.8 million in the three months ended March 31, 2018 compared to the same period in 2017, primarily as a result of the properties acquired in the DFT Merger, which contributed approximately $5.3 million.

Depreciation and Amortization

Depreciation and amortization expense increased by approximately $118.3 million in the three months ended March 31, 2018 compared to the same period in 2017, principally because of the properties acquired in the DFT merger, which contributed approximately $111.4 million.

General and Administrative

General and administrative expenses increased by approximately $1.9 million in the three months ended March 31, 2018 compared to the same period in 2017. The increase is primarily due to an increase in headcount from 2017 to 2018 to support the Company's continued growth.

Transactions and Integration Expenses

Transactions and integration expense increased by approximately $0.9 million in the three months ended March 31, 2018 compared to the same period in 2017, principally due to expenses incurred for potential acquisitions.

Interest Expense

Interest expense increased by approximately $21.5 million in the three months ended March 31, 2018 compared to the same period in 2017, primarily due to the issuance of the 2019 Notes in May 2017, the issuance of the 2.750% notes due 2024 and the 3.300% notes due 2029 in July 2017 and the issuance of the 2.750% notes due 2023 and the 3.700% notes due 2027 in August 2017.

Other Income (Expense)

Gain on Sale of Properties

During the three months ended March 31, 2018, we recognized a gain on sale of properties of $39.3 million primarily related to the disposition of (i) 200 Quannapowitt Parkway, which sold for $15.0 million in January 2018, (ii) 34551 Ardenwood Boulevard, which sold for $73.3 million in February 2018, (iii) 3065 Gold Camp Drive, which sold for $14.2 million in March 2018, and (iv) 11085 Sun Center Drive, which sold for $36.8 million in March 2018.

Liquidity and Capital Resources of the Parent Company

In this “Liquidity and Capital Resources of the Parent Company” section and in the “Liquidity and Capital Resources of the Operating Partnership” section below, the term, our “Parent Company”, refers to Digital Realty Trust, Inc. on an unconsolidated basis, excluding our Operating Partnership.

Analysis of Liquidity and Capital Resources

Our Parent Company’s business is operated primarily through our Operating Partnership, of which our Parent Company is the sole general partner and which it consolidates for financial reporting purposes. Because our Parent Company operates on a consolidated basis with our Operating Partnership, the section entitled “Liquidity and Capital Resources of the Operating Partnership” should be read in conjunction with this section to understand the liquidity and capital resources of our Parent Company on a consolidated basis and how our Company is operated as a whole.

Our Parent Company issues public equity from time to time, but generally does not otherwise generate any capital itself or conduct any business itself, other than incurring certain expenses in operating as a public company which are fully reimbursed by the Operating Partnership. Our Parent Company itself does not hold any indebtedness other than guarantees of the indebtedness of our Operating Partnership and certain of its subsidiaries, and its only material asset is its ownership of partnership interests of our Operating Partnership. Therefore, the consolidated assets and liabilities and the consolidated revenues and expenses of our Parent Company and our Operating Partnership are the same on their respective financial statements, except for immaterial differences related to cash, other assets and accrued liabilities that arise from public company expenses paid by our Parent Company. However, all debt is held directly or indirectly at the Operating Partnership level. Our

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Parent Company’s principal funding requirement is the payment of dividends on its common and preferred stock. Our Parent Company’s principal source of funding for its dividend payments is distributions it receives from our Operating Partnership.

As the sole general partner of our Operating Partnership, our Parent Company has the full, exclusive and complete responsibility for our Operating Partnership’s day-to-day management and control. Our Parent Company causes our Operating Partnership to distribute such portion of its available cash as our Parent Company may in its discretion determine, in the manner provided in our Operating Partnership’s partnership agreement. Our Parent Company receives proceeds from its equity issuances from time to time, but is generally required by our Operating Partnership’s partnership agreement to contribute the proceeds from its equity issuances to our Operating Partnership in exchange for partnership units of our Operating Partnership.

Our Parent Company is a well-known seasoned issuer with an effective shelf registration statement filed on September 22, 2017, which allows our Parent Company to register an unspecified amount of various classes of equity securities. As circumstances warrant, our Parent Company may issue equity from time to time on an opportunistic basis, dependent upon market conditions and available pricing. Any proceeds from such equity issuances would be generally contributed to our Operating Partnership in exchange for additional equity interests in our Operating Partnership. Our Operating Partnership may use the proceeds to acquire additional properties, to fund development opportunities and for general working capital purposes, including potentially for the repurchase, redemption or retirement of outstanding debt or equity securities.

The liquidity of our Parent Company is dependent on our Operating Partnership’s ability to make sufficient distributions to our Parent Company. The primary cash requirement of our Parent Company is its payment of dividends to its stockholders. Our Parent Company also guarantees our Operating Partnership’s, as well as certain of its subsidiaries’ and affiliates’, unsecured debt. If our Operating Partnership or such subsidiaries fail to fulfill their debt requirements, which trigger Parent Company guarantee obligations, then our Parent Company will be required to fulfill its cash payment commitments under such guarantees. However, our Parent Company’s only material asset is its investment in our Operating Partnership.

We believe our Operating Partnership’s sources of working capital, specifically its cash flow from operations, and funds available under its global revolving credit facility are adequate for it to make its distribution payments to our Parent Company and, in turn, for our Parent Company to make its dividend payments to its stockholders. However, we cannot assure you that our Operating Partnership’s sources of capital will continue to be available at all or in amounts sufficient to meet its needs, including making distribution payments to our Parent Company. The lack of availability of capital could adversely affect our Operating Partnership’s ability to pay its distributions to our Parent Company, which would in turn, adversely affect our Parent Company’s ability to pay cash dividends to its stockholders.

Our Parent Company entered into equity distribution agreements in June 2011, which we refer to as the 2011 Equity Distribution Agreements, with each of Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC, or the Agents, under which it can issue and sell shares of its common stock having an aggregate offering price of up to $400.0 million from time to time through, at its discretion, any of the Agents as its sales agents. The sales of common stock made under the 2011 Equity Distribution Agreements will be made in “at the market” offerings as defined in Rule 415 of the Securities Act. Cumulatively through March 31, 2018, Digital Realty Trust, Inc. has generated net proceeds of approximately $342.7 million from the issuance of approximately 5.7 million common shares under the 2011 Equity Distribution Agreements at an average price of $60.35 per share after payment of approximately $3.5 million of commissions to the sales agents and before offering expenses. No sales were made under the program during the three months ended March 31, 2018 and 2017. As of March 31, 2018, shares of common stock having an aggregate offering price of $53.8 million remained available for offer and sale under the program.

Future Uses of Cash

Our Parent Company may from time to time seek to retire, redeem or repurchase its equity or the debt securities of our Operating Partnership or its subsidiaries through cash purchases and/or exchanges for equity securities in open market purchases, privately negotiated transactions or otherwise. Such repurchases, redemptions or exchanges, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions or other factors. The amounts involved may be material.

We are also subject to the commitments discussed below under “Dividends and Distributions.”

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Dividends and Distributions

Our Parent Company is required to distribute 90% of its taxable income (excluding capital gains) on an annual basis in order for it to continue to qualify as a REIT for federal income tax purposes. Accordingly, our Parent Company intends to make, but is not contractually bound to make, regular quarterly distributions to its common stockholders from cash flow from our Operating Partnership’s operating activities. While historically our Parent Company has satisfied this distribution requirement by making cash distributions to its stockholders, it may choose to satisfy this requirement by making distributions of cash or other property. All such distributions are at the discretion of our Parent Company’s board of directors. Our Parent Company considers market factors and our Operating Partnership’s performance in addition to REIT requirements in determining distribution levels. Our Parent Company has distributed at least 100% of its taxable income annually since inception to minimize corporate level federal income taxes. Amounts accumulated for distribution to stockholders are invested primarily in interest-bearing accounts and short-term interest-bearing securities, which are consistent with our intention to maintain our Parent Company’s status as a REIT.

As a result of this distribution requirement, our Operating Partnership cannot rely on retained earnings to fund its on-going operations to the same extent that other companies whose parent companies are not REITs can. Our Parent Company may need to continue to raise capital in the debt and equity markets to fund our Operating Partnership’s working capital needs, as well as potential developments at new or existing properties, acquisitions or investments in existing or newly created joint ventures. In addition, our Parent Company may be required to use borrowings under our global revolving credit facility, if necessary, to meet REIT distribution requirements and maintain our Parent Company’s REIT status.

Our Parent Company has declared and paid the following dividends on its common and preferred stock for the three months ended March 31, 2018 (in thousands, except per share amounts):

Date dividend declared	Dividend payment date	Series C Preferred Stock		Series G Preferred Stock		Series H Preferred Stock		Series I Preferred Stock		Series J Preferred Stock		Common Stock
March 1, 2018	March 30, 2018	$	3,333	$	3,672	$	6,730	$	3,969	$	2,625	$	208,015
Annual rate of dividend per share		$	1.65625	$	1.46875	$	1.84375	$	1.58750	$	1.31250	$	4.04000

Distributions out of our Parent Company’s current or accumulated earnings and profits are generally classified as ordinary income whereas distributions in excess of our Parent Company’s current and accumulated earnings and profits, to the extent of a stockholder’s U.S. federal income tax basis in our Parent Company’s stock, are generally classified as a return of capital. Distributions in excess of a stockholder’s U.S. federal income tax basis in our Parent Company’s stock are generally characterized as capital gain. Cash provided by operating activities has been generally sufficient to fund distributions on an annual basis, however, we may also need to utilize borrowings under the global revolving credit facility to fund distributions.

Liquidity and Capital Resources of the Operating Partnership

In this “Liquidity and Capital Resources of the Operating Partnership” section, the terms “we”, “our” and “us” refer to our Operating Partnership together with its consolidated subsidiaries or our Operating Partnership and our Parent Company together with their consolidated subsidiaries, as the context requires.

Analysis of Liquidity and Capital Resources

Our Parent Company is our sole general partner and consolidates our results of operations for financial reporting purposes. Because we operate on a consolidated basis with our Parent Company, the section entitled “Liquidity and Capital Resources of the Parent Company” should be read in conjunction with this section to understand our liquidity and capital resources on a consolidated basis.

As of March 31, 2018, we had $22.4 million of cash and cash equivalents, excluding $7.3 million of restricted cash. Restricted cash primarily consists of contractual capital expenditures plus other deposits.

Our short-term liquidity requirements primarily consist of operating expenses, development costs and other expenditures associated with our properties, distributions to our Parent Company in order for it to make dividend payments on its preferred stock, distributions to our Parent Company in order for it to make dividend payments to its stockholders required to maintain its REIT status, distributions to the unitholders of common limited partnership interests in Digital Realty Trust, L.P., capital expenditures, debt service on our loans and senior notes, and, potentially, acquisitions. We expect to meet our short-term

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liquidity requirements through net cash provided by operations, restricted cash accounts established for certain future payments and by drawing upon our global revolving credit facility.

On January 15, 2016, we refinanced our global revolving credit facility and entered into a global senior credit agreement for a $2.0 billion senior unsecured revolving credit facility, which we refer to as the global revolving credit facility, that replaced the $2.0 billion revolving credit facility executed on August 15, 2013, as amended. The global revolving credit facility has an accordion feature that enables us to increase the borrowing capacity of the credit facility to up to $2.5 billion, subject to the receipt of lender commitments and other conditions precedent. The refinanced facility matures on January 15, 2020, with twosix-month extension options available. The interest rate for borrowings under the global revolving credit facility equals the applicable index plus a margin which is based on the credit ratings of our long-term debt and is currently 100 basis points. An annual facility fee on the total commitment amount of the facility, based on the credit ratings of our long-term debt, currently 20 basis points, is payable quarterly. Funds may be drawn in U.S., Canadian, Singapore, Australian and Hong Kong dollars, as well as Euro, British pound sterling and Japanese yen. As of March 31, 2018, borrowings under the global revolving credit facility bore interest at an overall blended rate of 2.52% comprised of 2.78% (U.S. dollars), 1.51% (British pound sterling), 0.62% (Euro), 2.77% (Australian dollars), 1.84% (Hong Kong dollars), 0.92% (Japanese yen) and 2.60% (Canadian dollars). The interest rates are based on 1-month LIBOR, 1-month GBP LIBOR, 1-month EURIBOR, 1-month BBR, 1-month HIBOR, 1-month JPY LIBOR and 1-month CDOR, respectively, plus a margin of 1.00%. The facility also bore a base borrowing rate of 4.75% (USD) which is based on the U.S. Prime Rate. We have used and intend to use available borrowings under the global revolving credit facility to acquire additional properties, fund development opportunities and for general working capital and other corporate purposes, including potentially for the repurchase, redemption or retirement of outstanding debt or equity securities. As of March 31, 2018, we have capitalized approximately $6.4 million of financing costs, net of accumulated amortization, related to the global revolving credit facility. As of March 31, 2018, approximately $958.5 million was drawn under the global revolving credit facility and $22.9 million of letters of credit were issued, leaving approximately $1.1 billion available for use.

On January 15, 2016, we refinanced the senior unsecured multi-currency term loan facility and entered into a term loan agreement, which governs (i) a $1.25 billion 5-year senior unsecured term loan, which we refer to as the 5-Year Term Loan, and (ii) a $300 million 7-year senior unsecured term loan, which we refer to as the 7-Year Term Loan. The 2016 term loan agreement replaced the $1.0 billion term loan agreement executed on April 16, 2012, as amended. The 5-Year Term Loan matures on January 15, 2021 and the 7-Year Term Loan matures on January 15, 2023. In addition, we have the ability from time to time to increase the aggregate size of lending under the 2016 term loan agreement from $1.55 billion to up to $1.8 billion, subject to receipt of lender commitments and other conditions precedent. Interest rates are based on our senior unsecured debt ratings and are currently 110 basis points and 155 basis points over the applicable index for floating rate advances for the 5-Year Term Loan and the 7-Year Term Loan, respectively. Funds may be drawn in U.S., Canadian, Singapore, Australian and Hong Kong dollars, as well as Euro, British pound sterling and Japanese yen. Based on exchange rates in effect at March 31, 2018, the balance outstanding is approximately $1.4 billion, excluding deferred financing costs. We have used borrowings under the term loans for acquisitions, repayment of indebtedness, development, working capital and general corporate purposes. As of March 31, 2018, we have capitalized approximately $4.4 million of financing costs, net of accumulated amortization, related to the 2016 unsecured term loans.

For a discussion of the potential impact of current global economic and market conditions on our liquidity and capital resources, see “—Factors Which May Influence Future Results of Operations—Global market and economic conditions” above.

Our Parent Company commenced its At-the-Market equity distribution program in June 2011, which is discussed under “Liquidity and Capital Resources of the Parent Company” above. To date, our Parent Company has generated net proceeds of approximately $342.7 million from the issuance of approximately 5.7 million shares of common stock under the program at an average price of $60.35 per share after payment of approximately $3.5 million of commissions to the sales agents before offering expenses. The proceeds from the issuances were contributed to us in exchange for the issuance of approximately 5.7 million common units to our Parent Company. No sales were made under the program during the three months ended March 31, 2018 and 2017. As of March 31, 2018, shares of common stock having an aggregate offering price of $53.8 million remained available for offer and sale under the program.

The growing acceptance by private institutional investors of the data center asset class has generally pushed capitalization rates lower, as such private investors may often have lower return expectations than us. As a result, we anticipate near-term single asset acquisitions activity to comprise a smaller percentage of our growth while this market dynamic persists.

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Construction

The table below summarizes our construction in progress (included in investments in real estate in the condensed consolidated balance sheets) as of March 31, 2018 and December 31, 2017:

Development Lifecycle	As of March 31, 2018							As of December 31, 2017
(dollars in thousands)	Net Rentable Square Feet (1)	Current Investment (2)		Future Investment (3)		Total Cost		Net Rentable Square Feet (1)	Current Investment (4)		Future Investment (3)		Total Cost
Development Construction in Progress
Space Held for Development (5)	1,461,265	$	375,502	$	—	$	375,502	1,573,758	$	416,553	$	—	$	416,553
Base Building Construction	2,310,720	351,933		299,377		651,310		1,333,763	222,093		149,507		371,600
Data Center Construction	1,319,101	727,162		561,437		1,288,599		1,366,393	748,006		500,674		1,248,680
Equipment Pool & Other Inventory		8,177		—		8,177			7,245		—		7,245
Campus, Tenant Improvements & Other		7,291		10,105		17,396			5,787		8,360		14,147
Total Development Construction in Progress	5,091,086	1,470,065		870,919		2,340,984		4,273,914	1,399,684		658,541		2,058,225
Land Inventory	(6)	236,415		—		236,415		(6)	352,406		—		352,406
Enhancement & Other		10,357		22,598		32,955			8,416		27,209		35,625
Recurring		14,458		21,738		36,196			23,985		29,184		53,169
Total Construction in Progress		$	1,731,295	$	915,255	$	2,646,550		$	1,784,491	$	714,934	$	2,499,425

(1) Square footage is based on current estimates and project plans, and may change upon completion of the project or due to remeasurement.

(2) Represents balances incurred through March 31, 2018 and included in land and building and improvements in the condensed consolidated balance sheets.

(3) Represents estimated cost to complete specific scope of work pursuant to contract, budget or approved capital plan.

(4) Represents balances incurred through December 31, 2017 and included in land and building and improvements in the condensed consolidated balance sheets.

(5) Excludes space held for development related to unconsolidated joint ventures and properties held for sale.

(6) Represents approximately 468 acres as of March 31, 2018 and approximately 539 acres as of December 31, 2017.

Land inventory and space held for development reflect cumulative cost spent pending future development. Base building construction consists of ongoing improvements to building infrastructure in preparation for future datacenter fit-out. Data center construction includes 1.3 million square feet of Turn Key Flex^® and Powered Base Building^® product with a cost to date of approximately $727.2 million. Generally, we expect to deliver the space within 12 months; however, lease commencement dates may significantly impact final delivery schedules. Equipment pool and other inventory represent the value of long-lead equipment and materials required for timely deployment and delivery of datacenter construction fit-out. Campus, tenant improvements and other costs include the value of development work which benefits space recently converted to our operating portfolio and is composed primarily of shared infrastructure projects and first-generation tenant improvements.

Future Uses of Cash

Our properties require periodic investments of capital for tenant-related capital expenditures and for general capital improvements. As of March 31, 2018, we had approximately 3.6 million square feet of space under active development and approximately 1.5 million square feet of space held for development and we also owned approximately 1.3 million net rentable square feet of data center space with extensive installed tenant improvements. Turn-Key Flex^® space is move-in-ready space for the placement of computer and network equipment required to provide a data center environment. Depending on demand for additional Turn-Key Flex^® space, we expect to incur significant tenant improvement costs to build out and develop these types of spaces. At March 31, 2018, the approximate 3.6 million square feet of space under active development was under construction for Turn-Key Flex^® and Powered Base Building^® products, all of which are expected to be income producing on or after completion, in seven U.S. metropolitan areas, three European metropolitan areas, two Australian metropolitan areas, two Asian metropolitan areas and one Canadian metropolitan area, consisting of approximately 2.3 million square feet of base building construction and 1.3 million square feet of data center construction. At March 31, 2018, we had open commitments, including amounts reimbursable of approximately $10.1 million, related to construction contracts of approximately $467.8 million.

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We currently expect to incur approximately $0.7 billion to $0.9 billion of capital expenditures for our development programs during the nine months ending December 31, 2018, although this amount may increase or decrease, potentially materially, based on numerous factors, including changes in demand, leasing results and availability of debt or equity capital.

Historical Capital Expenditures (Cash Basis)

The table below summarizes our capital expenditure activity for the three months March 31, 2018 and 2017 (in thousands):

	Three Months Ended March 31,
	2018		2017
Development projects	$	231,334	$	199,742
Enhancement and improvements	6,030		2,816
Recurring capital expenditures	27,328		29,588
Total capital expenditures (excluding indirect costs)	$	264,692	$	232,146

For the three months ended March 31, 2018, total capital expenditures increased $32.5 million to approximately $264.7 million from $232.1 million for the same period in 2017. Capital expenditures on our development projects plus our enhancement and improvements projects for the three months ended March 31, 2018 were approximately $237.4 million, which reflects an increase of approximately 17% from the same period in 2017. This increase was primarily due to increased spending for ground-up development projects, Turn-Key Flex space development and base building improvements. Our development capital expenditures are generally funded by our available cash and equity and debt capital.

Indirect costs, including capitalized interest, capitalized in the three months ended March 31, 2018 and 2017 were $25.1 million and $22.2 million, respectively. Capitalized interest comprised approximately $7.4 million and $4.6 million, respectively, of the total indirect costs capitalized for the three months ended March 31, 2018 and 2017. Capitalized interest in the three months ended March 31, 2018 increased compared to the same period in 2017 due to an increase in qualifying activities. Excluding capitalized interest, indirect costs in the three months ended March 31, 2018 increased compared to the same period in 2017 due primarily to capitalized amounts relating to compensation expense of employees directly engaged in construction and leasing activities. See “—Future Uses of Cash” above for a discussion of the amount of capital expenditures we expect to incur during the year ending December 31, 2018.

We are also subject to the commitments discussed below under “Commitments and Contingencies,” “Off-Balance Sheet Arrangements” and “Distributions.”

Consistent with our growth strategy, we actively pursue opportunities for potential acquisitions, with due diligence and negotiations often at different stages at different times. The dollar value of acquisitions for the year ending December 31, 2018 will be based on numerous factors, including tenant demand, leasing results, availability of debt or equity capital and acquisition opportunities.

We may from time to time seek to retire or repurchase our outstanding debt or the equity of our Parent Company through cash purchases and/or exchanges for equity securities of our Parent Company in open market purchases, privately negotiated transactions or otherwise. Such repurchases or exchanges, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions or other factors. The amounts involved may be material.

We expect to meet our short-term and long-term liquidity requirements, including to pay for scheduled debt maturities and to fund acquisitions and non-recurring capital improvements, with net cash from operations, future long-term secured and unsecured indebtedness and the issuance of equity and debt securities and the proceeds of equity issuances by our Parent Company. We also may fund future short-term and long-term liquidity requirements, including acquisitions and non-recurring capital improvements, using our global revolving credit facility pending permanent financing. If we are not able to obtain additional financing on terms attractive to us, or at all, including as a result of the circumstances described above under “Factors Which May Influence Future Results of Operations—Global market and economic conditions”, we may be required to reduce our acquisition or capital expenditure plans, which could have a material adverse effect upon our business and results of operations.

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Distributions

All distributions on our units are at the discretion of our Parent Company’s board of directors. During the three months ended March 31, 2018, our Operating Partnership declared the following distributions (in thousands, except per unit amounts):

Date distribution declared	Distribution payment date	Series C Preferred Units		Series G Preferred Units		Series H Preferred Units		Series I Preferred Units		Series J Preferred Units		Common Units
March 1, 2018	March 30, 2018	$	3,333	$	3,672	$	6,730	$	3,969	$	2,625	$	216,953
Annual rate of distribution per unit		$	1.65625	$	1.46875	$	1.84375	$	1.58750	$	1.31250	$	4.04000

Outstanding Consolidated Indebtedness

The table below summarizes our debt, as of March 31, 2018 (in millions):

Debt Summary:
Fixed rate	$	6,563.5
Variable rate debt subject to interest rate swaps	1,024.8
Total fixed rate debt (including interest rate swaps)	7,588.3
Variable rate—unhedged	1,624.7
Total	$	9,213.0
Percent of Total Debt:
Fixed rate (including swapped debt)	82.4		%
Variable rate	17.6		%
Total	100.0		%
Effective Interest Rate as of March 31, 2018 (1)
Fixed rate (including hedged variable rate debt)	3.70		%
Variable rate	2.24		%
Effective interest rate	3.44		%

(1) Excludes impact of deferred financing cost amortization.

As of March 31, 2018, we had approximately $9.2 billion of outstanding consolidated long-term debt as set forth in the table above, which excludes deferred financing costs. Our ratio of debt to total enterprise value was approximately 28% (based on the closing price of Digital Realty Trust, Inc.’s common stock on March 31, 2018 of $105.38). For this purpose, our total enterprise value is defined as the sum of the market value of Digital Realty Trust, Inc.’s outstanding common stock (which may decrease, thereby increasing our debt to total enterprise value ratio), plus the liquidation value of Digital Realty Trust, Inc.’s preferred stock, plus the aggregate value of our Operating Partnership’s units not held by Digital Realty Trust, Inc. (with the per unit value equal to the market value of one share of Digital Realty Trust, Inc.’s common stock and excluding long-term incentive units, Class C units and Class D units), plus the book value of our total consolidated indebtedness.

The variable rate debt shown above bears interest at interest rates based on various one-month LIBOR, EURIBOR, GBP LIBOR, SOR, BBR, HIBOR, JPY LIBOR, CDOR and U.S. Prime rates, depending on the respective agreement governing the debt, including our global revolving credit facility and unsecured term loans. As of March 31, 2018, our debt had a weighted average term to initial maturity of approximately 5.1 years (or approximately 5.2 years assuming exercise of extension options).

Off-Balance Sheet Arrangements

As of March 31, 2018, we were party to interest rate swap agreements related to $1.0 billion of outstanding principal on our variable rate debt. See Item 3. “Quantitative and Qualitative Disclosures about Market Risk.”

As of March 31, 2018, our pro-rata share of mortgage debt of unconsolidated joint ventures was approximately $270.3 million, of which $54.5 million is subject to interest rate swap agreements.

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Cash Flows

The following summary discussion of our cash flows is based on the condensed consolidated statements of cash flows and is not meant to be an all-inclusive discussion of the changes in our cash flows for the periods presented below.

Comparison of Three Months Ended March 31, 2018 to Three Months Ended March 31, 2017

The following table shows cash flows and ending cash and cash equivalent balances for the three months ended March 31, 2018 and 2017 (in thousands).

	Three Months Ended March 31,
	2018			2017			Change
Net cash provided by operating activities	$	236,990		$	219,066		$	17,924
Net cash used in investing activities	(177,284		)	(215,568		)	38,284
Net cash used in financing activities	(43,214		)	(2,891		)	(40,323		)
Net increase in cash, cash equivalents and restricted cash	$	16,492		$	607		$	15,885

The increase in net cash provided by operating activities was due to the properties acquired in the DFT Merger. The increases in cash flow were offset by properties sold in 2017 and 2018 and an increase in interest expense.

Net cash used in investing activities decreased for the three months ended March 31, 2018, primarily as a result of an increase in proceeds from property sales offset by an increase in cash paid for capital expenditures for the three months ended March 31, 2018 ($289.8 million) as compared to the same period in 2017 ($254.4 million).

Net cash flows used in financing activities for the Company consisted of the following amounts (in thousands).

	Three Months Ended March 31,
	2018			2017			Change
Proceeds from borrowings, net of repayments	$	395,732		$	307,029		$	88,703
Dividend and distribution payments	(436,787		)	(312,498		)	(124,289		)
Other	(2,159		)	2,578			(4,737		)
Net cash used in financing activities	$	(43,214	)	$	(2,891	)	$	(40,323	)

The increase in cash flows used in financing activities was due to an increase in dividend and distribution payments for the three months ended March 31, 2018 as compared to the same period in 2017, which was a result of an increase in the number of shares outstanding and dividend amount per share of common stock in the three months ended March 31, 2018 as compared to the same period in 2017, offset by an increase in proceeds from borrowings, net of repayments during the three months ended March 31, 2018 as compared to the three months ended March 31, 2017.

Net cash flows used in financing activities for the Operating Partnership consisted of the following amounts (in thousands).

	Three Months Ended March 31,
	2018			2017			Change
Proceeds from borrowings, net of repayments	$	395,732		$	307,029		$	88,703
Distribution payments	(436,787		)	(312,498		)	(124,289		)
Other	(2,159		)	2,578			(4,737		)
Net cash used in financing activities	$	(43,214	)	$	(2,891	)	$	(40,323	)

The increase in cash flows used in financing activities was due to an increase in distribution payments for the three months ended March 31, 2018 as compared to the same period in 2017, which was a result of an increase in the number of units outstanding and distribution amount per common unit in the three months ended March 31, 2018 as compared to the same period in 2017, offset by an increase in proceeds from borrowings, net of repayments during the three months ended March 31, 2018 as compared to the three months ended March 31, 2017.

Noncontrolling Interests in Operating Partnership

Noncontrolling interests relate to the common units in our Operating Partnership that are not owned by Digital Realty Trust, Inc., which, as of March 31, 2018, amounted to 4.1% of our Operating Partnership common units. Historically, our

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Operating Partnership has issued common units to third party sellers in connection with our acquisition of real estate interests from such third parties.

Limited partners have the right to require our Operating Partnership to redeem part or all of their common units for cash based upon the fair market value of an equivalent number of shares of Digital Realty Trust, Inc. common stock at the time of the redemption. Alternatively, we may elect to acquire those common units in exchange for shares of Digital Realty Trust, Inc. common stock on a one-for-one basis, subject to adjustment in the event of stock splits, stock dividends, issuance of stock rights, specified extraordinary distributions and similar events. In connection with the DFT Merger, approximately 0.5 million common units of the Operating Partnership were issued to certain former unitholders in DuPont Fabros Technology, L.P., which are subject to certain restrictions and, accordingly, are not presented as permanent capital in the condensed consolidated balance sheet.

Inflation

Many of our leases provide for separate real estate tax and operating expense escalations. In addition, many of the leases provide for fixed base rent increases. We believe that inflationary increases may be at least partially offset by the contractual rent increases and expense escalations described above.

Funds from Operations

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, excluding a gain from a pre-existing relationship, impairment charges and 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.

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Reconciliation of Net Income Available to Common Stockholders to Funds From Operations (FFO)

(unaudited, in thousands, except per share data)

	Three Months Ended March 31,
	2018			2017
Net income available to common stockholders	$	86,298		$	66,145
Adjustments:
Noncontrolling interests in operating partnership	3,480			904
Real estate related depreciation and amortization (1)	291,686			173,447
Real estate related depreciation and amortization related to investments in unconsolidated joint ventures	3,476			2,757
Gain on sale of properties	(39,273		)	522
FFO available to common stockholders and unitholders (2)	$	345,667		$	243,775
Basic FFO per share and unit	$	1.62		$	1.51
Diluted FFO per share and unit (2)	$	1.61		$	1.50
Weighted average common stock and units outstanding
Basic	214,009			161,475
Diluted (2)	214,803			162,600
(1)    Real estate related depreciation and amortization was computed as follows:
Depreciation and amortization per income statement	$	294,789		$	176,466
Non-real estate depreciation	(3,103		)	(3,019		)
	$	291,686		$	173,447

(2) For all periods presented, we have excluded the effect of dilutive series C, series F, series G, series H, series I and series J 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 C, series F, series G, series H, series I and series J preferred stock, as applicable, which we consider highly improbable.

	Three Months Ended March 31,
	2018	2017
Weighted average common stock and units outstanding	214,009	161,475
Add: Effect of dilutive securities	794	1,125
Weighted average common stock and units outstanding—diluted	214,803	162,600

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our future income, cash flows and fair values relevant to financial instruments depend upon prevalent market interest rates. Market risk refers to the risk of loss from adverse changes in market prices and interest rates. We do not use derivatives for trading or speculative purposes and only enter into contracts with major financial institutions based on their credit rating and other factors.

Analysis of Debt between Fixed and Variable Rate

We use interest rate swap agreements and fixed rate debt to reduce our exposure to interest rate movements. As of March 31, 2018, our consolidated debt was as follows (in millions):

	Carrying Value		Estimated Fair Value
Fixed rate debt	$	6,563.5	$	6,755.4
Variable rate debt subject to interest rate swaps	1,024.8		1,024.8
Total fixed rate debt (including interest rate swaps)	7,588.3		7,780.2
Variable rate debt	1,624.7		1,624.7
Total outstanding debt	$	9,213.0	$	9,404.9

Interest rate derivatives included in this table and their fair values as of March 31, 2018 and December 31, 2017 were as follows (in thousands):

Notional Amount										Fair Value at Significant Other Observable Inputs (Level 2)
As of March 31, 2018			As of December 31, 2017			Type of Derivative	Strike Rate	Effective Date	Expiration Date	As of March 31, 2018 (5)		As of December 31, 2017(5)
Currently-paying contracts
$	206,000	(1)	$	206,000		Swap	1.611	Jun 15, 2017	Jan 15, 2020	$	2,551	$	1,409
54,905		(1)	54,905			Swap	1.605	Jun 6, 2017	Jan 6, 2020	673		374
75,000		(1)	75,000		(1)	Swap	1.016	Apr 6, 2016	Jan 6, 2021	2,862		2,260
75,000		(1)	75,000		(1)	Swap	1.164	Jan 15, 2016	Jan 15, 2021	2,583		1,947
300,000		(2)	300,000		(2)	Swap	1.435	Jan 15, 2016	Jan 15, 2023	15,001		9,978
237,519		(3)	229,012		(3)	Swap	0.792	Jan 15, 2016	Jan 15, 2019	9		(430		)
76,387		(4)	78,357		(4)	Swap	0.779	Jan 15, 2016	Jan 15, 2021	2,972		3,034
$	1,024,811		$	1,018,274						$	26,651	$	18,572

(1) Represents portions of the U.S. dollar tranche of the 5-Year Term Loan.

(2) Represents the U.S. dollar tranche of the 7-Year Term Loan.

(3) Represents the British pound sterling tranche of the 5-Year Term Loan. Translation to U.S. dollars is based on exchange rates of $1.40 to £1.00 as of March 31, 2018 and $1.35 to £1.00 as of December 31, 2017.

(4) Represents the Canadian dollar tranche of the 5-Year Term Loan. Translation to U.S. dollars is based on exchange rates of $0.78 to 1.00 CAD as of March 31, 2018 and $0.80 to 1.00 CAD as of December 31, 2017.

(5) Balance recorded in other assets in the consolidated balance sheets if positive and recorded in accounts payable and other accrued liabilities in the consolidated balance sheets if negative.

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Sensitivity to Changes in Interest Rates

The following table shows the effect if assumed changes in interest rates occurred, based on fair values and interest expense as of March 31, 2018:

Assumed event	Change ($ millions)
Increase in fair value of interest rate swaps following an assumed 10% increase in interest rates	$	5.0
Decrease in fair value of interest rate swaps following an assumed 10% decrease in interest rates	(5.0		)
Increase in annual interest expense on our debt that is variable rate and not subject to swapped interest following a 10% increase in interest rates	3.2
Decrease in annual interest expense on our debt that is variable rate and not subject to swapped interest following a 10% decrease in interest rates	(3.2		)
Increase in fair value of fixed rate debt following a 10% decrease in interest rates	74.1
Decrease in fair value of fixed rate debt following a 10% increase in interest rates	(68.8		)

Interest risk amounts were determined by considering the impact of hypothetical interest rates on our financial instruments. These analyses do not consider the effect of any change in overall economic activity that could occur in that environment. Further, in the event of a change of that magnitude, we may take actions to further mitigate our exposure to the change. However, due to the uncertainty of the specific actions that would be taken and their possible effects, these analyses assume no changes in our financial structure.

Foreign Currency Exchange Risk

For the three months ended March 31, 2018 and 2017, we had foreign operations in the United Kingdom, Ireland, France, Germany, the Netherlands, Switzerland, Canada, Singapore, Australia, Japan and Hong Kong. As such, we are subject to risk from the effects of exchange rate movements of foreign currencies, which may affect future costs and cash flows. Our foreign operations are conducted in the British pound sterling, Euro, Australian dollar, Singapore dollar, Canadian dollar, Hong Kong dollar and the Japanese yen. Our primary currency exposures are to the British pound sterling, Euro and the Singapore dollar. We attempt to mitigate a portion of the risk of currency fluctuation by financing our investments in the local currency denominations and we may also hedge well-defined transactional exposures with foreign currency forwards or options, although there can be no assurances that these will be effective. As a result, changes in the relation of any such foreign currency to U.S. dollars may affect our revenues, operating margins and distributions and may also affect the book value of our assets and the amount of stockholders’ equity. For the three months ended March 31, 2018 and 2017, operating revenues from properties outside the United States contributed $140.9 million and $121.4 million, respectively, which represented 18.9% and 22.1% of our total operating revenues, respectively. Net investment in properties outside the United States was $3.3 billion and $3.1 billion as of March 31, 2018 and December 31, 2017, respectively. Net assets in foreign operations were approximately $0.3 billion and $0.3 billion as of March 31, 2018 and December 31, 2017, respectively.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures (Digital Realty Trust, Inc.)

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in its reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the U.S. Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to its management, including its chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, the Company’s management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and its management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Also, the Company has investments in certain unconsolidated entities, which are accounted for using the equity method of accounting. As the Company does not control or manage these entities, its disclosure controls and procedures with respect to such entities may be substantially more limited than those it maintains with respect to its consolidated subsidiaries.

As required by Rule 13a-15(b) or Rule 15d-15(b) of the Securities Exchange Act of 1934, as amended, management of the Company carried out an evaluation, under the supervision and with participation of its chief executive officer and chief financial officer, of the effectiveness of the design and operation of its disclosure controls and procedures that were in effect as

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of the end of the quarter covered by this report. Based on the foregoing, the Company’s chief executive officer and chief financial officer concluded that its disclosure controls and procedures were effective at the reasonable assurance level.

There have been no changes in the Company’s internal control over financial reporting during its most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.

Evaluation of Disclosure Controls and Procedures (Digital Realty Trust, L.P.)

The Operating Partnership maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in its reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the U.S. Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to its management, including the chief executive officer and chief financial officer of its general partner, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, the Operating Partnership’s management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and its management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Also, the Operating Partnership has investments in certain unconsolidated entities, which are accounted for using the equity method of accounting. As the Operating Partnership does not control or manage these entities, its disclosure controls and procedures with respect to such entities may be substantially more limited than those it maintains with respect to its consolidated subsidiaries.

As required by Rule 13a-15(b) or Rule 15d-15(b) of the Securities Exchange Act of 1934, as amended, management of the Operating Partnership carried out an evaluation, under the supervision and with participation of the chief executive officer and chief financial officer of its general partner, of the effectiveness of the design and operation of its disclosure controls and procedures that were in effect as of the end of the quarter covered by this report. Based on the foregoing, the chief executive officer and chief financial officer of the Operating Partnership’s general partner concluded that its disclosure controls and procedures were effective at the reasonable assurance level.

There have been no changes in the Operating Partnership’s internal control over financial reporting during its most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.

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PART II—OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

The Company is involved in legal proceedings arising in the ordinary course of business from time to time.  As of March 31, 2018, the Company is not currently a party to any legal proceedings that it believes would have a material adverse effect on its financial position, results of operations or liquidity nor, to its knowledge, are any such legal proceedings threatened against it.

ITEM 1A. RISK FACTORS.

The risk factors discussed under the heading “Risk Factors” and elsewhere in the Company’s and the Operating Partnership’s Annual Report on Form 10-K for the year ended December 31, 2017 continue to apply to our business.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

Digital Realty Trust, Inc.

None.

Digital Realty Trust, L.P.

During the three months ended March 31, 2018, our Operating Partnership issued partnership units in private placements in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act, in the amounts and for the consideration set forth below:

During the three months ended March 31, 2018, Digital Realty Trust, Inc. issued an aggregate of 154,647 shares of its common stock in connection with restricted stock awards for no cash consideration. For each share of common stock issued by Digital Realty Trust, Inc. in connection with such an award, our Operating Partnership issued a restricted common unit to Digital Realty Trust, Inc. During the three months ended March 31, 2018, our Operating Partnership issued an aggregate of 154,647 common units to Digital Realty Trust, Inc., as required by our Operating Partnership’s partnership agreement.

For these issuances of common units to Digital Realty Trust, Inc., our Operating Partnership relied on Digital Realty Trust, Inc.’s status as a publicly traded NYSE-listed company with approximately $21.6 billion in total consolidated assets and as our Operating Partnership’s majority owner and general partner as the basis for the exemption under Section 4(a)(2) of the Securities Act.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFETY DISCLOSURES.

Not applicable.

ITEM 5. OTHER INFORMATION.

None.

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ITEM 6. EXHIBITS.

Exhibit Number	Description
3.1	Articles of Amendment and Restatement of Digital Realty Trust, Inc., as amended (incorporated by reference to Exhibit 3.1 to the Combined Quarterly Report on Form 10-Q of Digital Realty Trust, Inc. and Digital Realty Trust, L.P. (File Nos. 001-32336 and 000-54023) filed on November 9, 2017).
3.2	Seventh Amended and Restated Bylaws of Digital Realty Trust, Inc. (incorporated by reference to Exhibit 3.1 to Digital Realty Trust, Inc.’s Current Report on Form 8-K (File No. 001-32336) filed on March 8, 2018).
3.3	Certificate of Limited Partnership of Digital Realty Trust, L.P. (incorporated by reference to Exhibit 3.1 to Digital Realty Trust, L.P.’s General Form for Registration of Securities on Form 10 (File No. 000-54023) filed on June 25, 2010).
3.4	Sixteenth Amended and Restated Agreement of Limited Partnership of Digital Realty Trust, L.P. (incorporated by reference to Exhibit 3.2 to the Combined Current Report on Form 8-K of Digital Realty Trust, Inc. and Digital Realty Trust, L.P.  (File Nos. 001-32336 and 000-54023) filed on September 14, 2017).
10.1†	Employment Agreement, dated as of October 24, 2016, by and among Digital Realty Trust, Inc., DLR LLC and Daniel W. Papes.
10.2†	Employment Agreement, dated as of January 9, 2018, by and among Digital Realty Trust, Inc., DLR LLC and Erich J. Sanchack (incorporated by reference to Exhibit 10.1 to the Combined Current Report on Form 8-K of Digital Realty Trust, Inc. and Digital Realty Trust, L.P. (File Nos. 001-32336 and 000-54023) filed on January 17, 2018).
10.3	Amendment No. 1 to the Global Senior Credit Agreement, dated as of December 20, 2017 and effective as of January 3, 2018, among Digital Realty Trust, L.P. and the other borrowers named therein and additional borrowers party thereto, as borrowers, Digital Realty Trust, Inc., as parent guarantor, the subsidiary borrowers and guarantors named therein, and Citibank, N.A., as administrative agent.
12.1	Statement of Computation of Ratios.
31.1	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer for Digital Realty Trust, Inc.
31.2	Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer for Digital Realty Trust, Inc.
31.3	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer for Digital Realty Trust, L.P.
31.4	Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer for Digital Realty Trust, L.P.
32.1	18 U.S.C. § 1350 Certification of Chief Executive Officer for Digital Realty Trust, Inc.
32.2	18 U.S.C. § 1350 Certification of Chief Financial Officer for Digital Realty Trust, Inc.
32.3	18 U.S.C. § 1350 Certification of Chief Executive Officer for Digital Realty Trust, L.P.
32.4	18 U.S.C. § 1350 Certification of Chief Financial Officer for Digital Realty Trust, L.P.
101	The following financial statements from Digital Realty Trust, Inc.’s and Digital Realty Trust, L.P.’s Form 10-Q for the quarter ended March 31, 2018, formatted in XBRL interactive data files: (i) Condensed Consolidated Balance Sheets as of March 31, 2018 and December 31, 2017; (ii) Condensed Consolidated Income Statements for the three months ended March 31, 2018 and 2017; (iii) Condensed Consolidated Statements of Comprehensive Income for the three ended March 31, 2018 and 2017; (iv) Condensed Consolidated Statements of Equity/Capital for the three months ended March 31, 2018; (v) Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2018 and 2017; and (vi) Notes to Condensed Consolidated Financial Statements.

† Management contract or compensatory plan or arrangement.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	DIGITAL REALTY TRUST, INC.
May 8, 2018	/S/    A. WILLIAM STEIN
	A. William Stein Chief Executive Officer (principal executive officer)
May 8, 2018	/S/    ANDREW P.POWER
	Andrew P. Power Chief Financial Officer (principal financial officer)
May 8, 2018	/S/    EDWARD F. SHAM
	Edward F. Sham Chief Accounting Officer (principal accounting officer)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		DIGITAL REALTY TRUST, L.P.
	By: Digital Realty Trust, Inc.        Its general partner
	By:
May 8, 2018		/S/    A. WILLIAM STEIN
		A. William Stein Chief Executive Officer (principal executive officer)
May 8, 2018		/S/    ANDREW P.POWER
		Andrew P. Power Chief Financial Officer (principal financial officer)
May 8, 2018		/s/    EDWARD F. SHAM
		Edward F. Sham Chief Accounting Officer (principal accounting officer)

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EX-10.1

DIGITAL REALTY TRUST, INC.
FOUR EMBARCADERO CENTER, SUITE 3200
SAN FRANCISCO, CA 94111

October 24, 2016

Daniel W. Papes

c/o Digital Realty Trust, Inc.

1 State Street, 21^st Floor

New York, New York 10004

Re: EMPLOYMENT TERMS

Dear Daniel:

Digital Realty Trust, Inc. (the “REIT”) and DLR LLC (the “Employer” and together with the REIT, the “Company”) are pleased to offer you employment with the REIT and the Employer on the terms and conditions set forth in this letter (this “Agreement”), effective as of October 31, 2016 (the “Effective Date”).

1.TERM. Subject to the provisions for earlier termination hereinafter provided, your employment hereunder shall be for a term (the “Term”) commencing on the Effective Date and ending on the third (3^rd) anniversary of the Effective Date (the “Initial Termination Date”). If not previously terminated, the Term shall automatically be extended for one additional year on the Initial Termination Date unless either you or the Company elect not to so extend the Term by notifying the other party, in writing, of such election not less than sixty (60) days prior to the Initial Termination Date.

2.POSITION, DUTIES AND RESPONSIBILITIES. During the Term, the Company will employ you, and you agree to be employed by the Company, as Senior Vice President, Global Sales and Marketing of the REIT and the Employer. In the capacity of Senior Vice President, Global Sales and Marketing, you will have such duties and responsibilities as are normally associated with such position and will devote your full business time and attention to serving the Company in such position. Your duties may be changed from time to time by the Company, consistent with your position. You will report to the Chief Executive Officer of the Company. You will work full-time at our offices located in New York, New York (or such other location in the greater New York metropolitan area as the Company may utilize as its offices), except for travel to other locations as may be necessary to fulfill your responsibilities. At the Company’s request, you will serve the Company and/or its subsidiaries and affiliates in other

1

offices and capacities in addition to the foregoing. In the event that you serve in any one or more of such additional capacities, your compensation will not be increased beyond that specified in this Agreement. In addition, in the event your service in one or more of such additional capacities is terminated, your compensation, as specified in this Agreement, will not be diminished or reduced in any manner as a result of such termination for so long as you otherwise remain employed under the terms of this Agreement.

3.BASE COMPENSATION. During the Term, the Company will pay you a base salary of $400,000 per year, less payroll deductions and all required withholdings, payable in accordance with the Company’s normal payroll practices and prorated for any partial month of employment. Your annual base salary may be increased, but not decreased, by the Compensation Committee of the Board of Directors of the REIT (the “Compensation Committee”) in its discretion pursuant to the Company’s policies as in effect from time to time, and such increased amount thereafter will be your base salary per year for purposes of this Agreement.

4.ANNUAL BONUS. In addition to the base salary set forth above, during the Term, commencing with calendar year 2016, you will be eligible to participate in the Company’s incentive bonus plan applicable to similarly situated executives of the Company. The amount of your annual bonus will be based on the attainment of performance criteria established and evaluated by the Company in accordance with the terms of such bonus plan as in effect from time to time, provided that, subject to the terms of such bonus plan and attainment of performance criteria established by the Company, your target and maximum annual bonus shall be one hundred percent (100%) and one hundred fifty percent (150%), respectively, of your base salary for such year, pro-rated for your partial year of employment for calendar year 2016. Any annual bonus that becomes payable to you is intended to satisfy the short-term deferral exemption under Treasury Regulation Section 1.409A-1(b)(4) and shall be made not later than the last day of the applicable two and one-half (2 ½) month “short-term deferral period” with respect to such annual bonus, within the meaning of Treasury Regulation Section 1.409A-1(b)(4). In addition to any annual bonus (if any) payable to you with respect to calendar year 2016, you will be eligible to receive an additional one-time payment with respect to calendar year 2016 in the amount of $35,000, less payroll deductions and all required withholdings, payable on or before March 31, 2017 subject to your continued employment with the Company through the payment date.

5.SIGN-ON BONUS. Subject to your continued employment with the Company through the payment date, you will be eligible to receive a one-time cash payment in the amount of $125,000, less payroll deductions and all required withholdings, payable within forty-five (45) days following the Effective Date (the “Sign-On Bonus”). In the event that you voluntarily resign your employment with the Company or the Company terminates your employment for Cause, in either case, prior to the first anniversary of the Effective Date, you will be required to

2

repay the Company an amount equal to the product of (x) the Sign-On Bonus and (y) a fraction, the numerator of which equals the number of full days following your termination of employment until the first anniversary of the Effective Date, and the denominator of which equals 365.

6.BENEFITS AND VACATION. During the Term, you will be eligible to participate in all savings and retirement plans, practices, policies and programs maintained or sponsored by the Company from time to time which are applicable to other similarly situated executives of the Company, subject to the terms and conditions thereof. During the Term, you will also be eligible for standard benefits, such as medical insurance, paid time-off and holidays to the extent applicable generally to other similarly situated executives of the Company, subject to the terms and conditions of the applicable Company plans or policies.

7.LONG-TERM INCENTIVE AWARDS. Subject to approval by the Compensation Committee and your continued employment with the Company through the grant date, the REIT agrees to grant to you in your capacity as an employee of the Company and in consideration of your provision of services to the Company (i) an award of profits interest units of Digital Realty Trust, L.P. (the “Operating Partnership”) equivalent to approximately $125,000 as of the date of grant, which will be subject to time-based vesting, and (ii) an award of Class D profits interest units of the Operating Partnership, to be granted in 2017 at such time as annual awards of Class D profits interest units are made by the Company, equivalent to approximately $1,000,000 as of the date of grant, which will be subject to performance-based vesting (collectively, the “Grants”).  Alternatively, if you do not qualify as an accredited investor or if you otherwise so elect, you will receive (i) a restricted stock unit grant subject to time-based vesting in lieu of profits interest units and (ii) a restricted stock unit grant subject to performance-based vesting in lieu of the Class D profits interest units.  The number of profits interest units and Class D profits interest units (or, if applicable, restricted stock units) to be issued will be determined by the Compensation Committee in its discretion. Subject to your continued employment with the Company, twenty-five percent (25%) of the profits interest units (or, if applicable, restricted stock units) subject to the time-based Grant shall vest on each of the first four anniversaries of the date of grant or such other date as the Compensation Committee may determine, and the performance-based Grant shall vest in accordance with a vesting schedule approved by the Compensation Committee.  Consistent with the foregoing, the terms and conditions of the Grants shall be set forth in profits interest units and Class D profits interest units agreements (or, if applicable, restricted stock units agreements) which will be provided to you for acceptance and as evidence of such Grants as soon as administratively possible following the applicable grant date. 

8.TERMINATION OF EMPLOYMENT.

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(a)Without Cause or for Good Reason. Subject to Section 8(g) below, in the event of a termination of your employment during the Term by the Company without Cause or by you for Good Reason (each as defined below), then, in addition to any other accrued amounts payable to you through the date of termination of your employment (such date, or the date of your death if applicable under Section 8(c) below, the “Termination Date”), the Company will pay and provide you with the following payments and benefits:

(i)payable within thirty (30) days after your Termination Date (with the exact payment date to be determined by the Company in its discretion), a lump-sum severance payment in an amount equal to the sum of (x) one (1.0) (the “Severance Multiple”) times the sum of (A) your annual base salary as in effect on the Termination Date, plus (B) your target annual bonus for the fiscal year in which the Termination Date occurs (in the case of both (A) and (B), without giving effect to any reduction which constitutes Good Reason), (y) the Stub Year Bonus, plus (z) the Prior Year Bonus, if any;

(ii)for a period commencing on the Termination Date and ending on the earlier of (x) the twelve (12)-month anniversary of the Termination Date or (y) the date on which you become eligible to receive comparable group health insurance coverage under a subsequent employer’s plans, the Company shall continue to provide you and your eligible family members with group health insurance coverage at least equal to that which would have been provided to you if your employment had not been terminated (including, in the discretion of the Company, by purchasing COBRA coverage for you and your eligible family members); provided, however, that if (A) any plan pursuant to which the Company is providing such coverage is not, or ceases prior to the expiration of the period of continuation coverage to be, exempt from the application of Section 409A of the Code (as defined below) under Treasury Regulation Section 1.409A-1(a)(5), or (B) the Company is otherwise unable to continue to cover you under its group health plans or doing so would jeopardize the tax-qualified status of such plans, then, in either case, an amount equal to the monthly plan premium payment shall thereafter be paid to you as currently taxable compensation in substantially equal monthly installments over the continuation period (or the remaining portion thereof);

(iii)for a period commencing on the Termination Date and ending on the twelve (12)-month anniversary of the Termination Date, the Company shall, at its sole expense and on an as-incurred basis, provide you with outplacement counseling services directly related to your termination of employment with the Company, the provider of which shall be selected by the Company; and

(iv)to the extent that any outstanding Company equity-based awards issued to you under the Company’s equity incentive plans are subject to vesting based on continued employment or the lapse of time, such awards shall become vested and exercisable

4

immediately prior to the Termination Date. The vesting of any awards that are subject to vesting based on the satisfaction of performance goals, including, without limitation, any performance-based profits interest units of the Operating Partnership and other “outperformance awards” issued to you, shall be governed by the terms of the award agreements evidencing such awards. For purposes of clarification, except as otherwise provided under any award agreements relating to such awards, the terms set forth in this Agreement, including this Section 8, are intended to be in addition to (and not in lieu of) the vesting and acceleration features related to such stock options and other equity-based awards (including profits interest units of the Operating Partnership and other “outperformance awards”) held by you and included elsewhere, including in any award agreements related to such awards, and the vesting and acceleration terms hereof shall be applicable only to the extent they result in additional acceleration or vesting of such stock options and other equity-based awards held by you.

(b)Change in Control. Subject to Section 8(g) below, in the event that a Change in Control (as defined in the Digital Realty Trust, Inc., Digital Services, Inc. and Digital Realty Trust, L.P. 2014 Incentive Award Plan, as amended, or any successor incentive plan) occurs during the Term and, on the date of or within one year after such Change in Control, you incur a termination of employment by the Company without Cause or by you for Good Reason (each as defined below), then, in addition to any other accrued amounts payable to you through the Termination Date, you shall be entitled to the payments and benefits provided in Section 8(a) hereof, subject to the terms and conditions thereof, except that, for purposes of this Section 8(b), the Severance Multiple shall be equal to two (2.0).

(c)Death or Disability. Subject to Section 8(g) below, and notwithstanding anything to the contrary contained herein, in the event of a termination of your employment during the Term by reason of your death or Disability (as defined below), then, in addition to any other accrued amounts payable to you through the Termination Date, the Company will pay and provide you (or your estate or legal representative) with the following payments and benefits:

(i)     payable within thirty (30) days after your Termination Date (with the exact payment date to be determined by the Company in its discretion), a lump-sum severance payment in an amount equal to the sum of (w) your annual base salary as in effect on the Termination Date, (x) your target annual bonus for the fiscal year in which the Termination Date occurs, (y) the Stub Year Bonus, plus (z) the Prior Year Bonus, if any; and

(ii)     to the extent that any outstanding Company equity-based awards issued to you under the Company’s equity incentive plans are subject to vesting based on continued employment or the lapse of time, such awards shall become vested and exercisable immediately prior to the Termination Date. The vesting of any awards that are subject to vesting based on the satisfaction of performance goals, including, without limitation, any performance-

5

based profits interest units of the Operating Partnership and other “outperformance awards” issued to you, shall be governed by the terms of the award agreements evidencing such awards.

(d)Expiration; Non-renewal. Notwithstanding anything contained herein, in no event shall the expiration of the Term set forth in Section 1 above or the Company’s election not to renew or extend the Term or your employment with the Company constitute a termination your employment by the Company without Cause.

(e)Termination of Offices and Directorships. Upon a termination of your employment for any reason, except to the extent otherwise determined by the Board of Directors of the REIT (the “Board”) in its sole discretion, you shall be deemed to have resigned from all offices, directorships and other employment positions, if any, then held with the Company or any member of the Digital Group (as defined below), and you agree that you shall take all actions reasonably requested by the Company to effectuate the foregoing.

(f)Potential Six-Month Delay. Notwithstanding anything to the contrary in this Agreement, no compensation or benefits, including without limitation any termination payments or benefits payable under this Section 8, shall be paid to you prior to the expiration of the six (6)-month period following your “separation from service” from the Company (within the meaning of Section 409A(a)(2)(A)(i) of the Internal Revenue Code of 1986, as amended (the “Code”)) to the extent that the Company determines that paying such amounts at the time or times indicated in this Agreement would be a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code. If the payment of any such amounts is delayed as a result of the previous sentence, then on the first business day following the end of such six (6)-month period (or such earlier date upon which such amount can be paid under Section 409A of the Code without resulting in a prohibited distribution, including as a result of your death), the Company shall pay you a lump-sum amount equal to the cumulative amount that would have otherwise been payable to you during such six (6)-month period, plus interest thereon from the Termination Date through the payment date at a rate equal to the then-current “applicable Federal rate” determined under Section 7872(f)(2)(A) of the Code.

(g)Release; Compliance with Covenants. Notwithstanding anything contained herein, your right to receive the payments and benefits set forth in this Section 8 is conditioned on and subject to (i) your execution within twenty-one (21) days (or, to the extent required by applicable law, forty-five (45) days) following the Termination Date and non-revocation within seven (7) days thereafter of a general release of claims against the Digital Group (as defined below), in a form reasonably acceptable to the Company, (ii) your continued compliance with the restrictive covenants set forth in Section 10 of this Agreement and any similar covenants set forth in any other agreement between you and the Company, and (iii) your compliance with Section 8(e) above.

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(h)Definitions. For purposes of this Agreement:

(A)“Cause” shall mean (1) your willful and continued failure to substantially perform your duties with the Company (other than any such failure resulting from your incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to you by the Company, which demand specifically identifies the manner in which the Company believes that you have not substantially performed your duties and which failure is not cured within thirty (30) days of receiving such notice; (2) your willful commission of an act of fraud or dishonesty resulting in economic or financial injury to the Company or its subsidiaries or affiliates; (3) your conviction of, or entry by you of a guilty or no contest plea to, the commission of a felony or a crime involving moral turpitude; (4) a willful breach by you of any fiduciary duty owed to the Company which results in economic or other injury to the Company or its subsidiaries or affiliates; (5) your willful and gross misconduct in the performance of your duties hereunder that results in economic or other injury to the Company or its subsidiaries or affiliates and which misconduct is not cured within thirty (30) days after written notification is delivered to you by the Company that specifically identifies any such misconduct; (6) your willful and material breach of your covenants set forth in Section 10 below; or (7) a material breach by you of any of your other obligations under this Agreement after written notice is delivered to you by the Company which specifically identifies such breach. For purposes of this provision, no act or failure to act on your part will be considered “willful” unless it is done, or omitted to be done, by you in bad faith or without reasonable belief that your action or omission was in the best interests of the Company. Notwithstanding the foregoing, in the event you incur a “separation from service” by reason of a termination of your employment by the Company (other than by reason of your death or Disability or pursuant to clause (3) of this paragraph) on or within one year after a Change in Control or within the six month period immediately preceding a Change in Control in connection with such Change in Control, it shall be presumed for purposes of this Agreement that such termination was effected by the Company other than for Cause unless the contrary is established by the Company.

(B)“Disability” shall mean a disability that qualifies or, had you been a participant, would qualify you to receive long-term disability payments under the Company’s group long-term disability insurance plan or program, as it may be amended from time to time.

(C)“Good Reason” shall mean the occurrence of any one or more of the following events without your prior written consent, unless the Company fully corrects the circumstances constituting Good Reason (provided such circumstances

7

are capable of correction) prior to the Termination Date: (1) the Company’s assignment to you of any duties materially inconsistent with your position (including status, offices, titles and reporting requirements), authority, duties or responsibilities as contemplated by Section 2 hereof, or any other action by the Company which results in a material diminution in such position, authority, duties or responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company; (2) the Company’s material reduction of your annual base salary or bonus opportunity, each as in effect on the date hereof or as the same may be increased from time to time; (3) the relocation of the Company’s offices at which you are principally employed (the “Principal Location”) to a location more than forty-five (45) miles from such location, or the Company’s requiring you to be based at a location more than forty-five (45) miles from the Principal Location, except for required travel on Company business; (4) the Company requiring you to report to an officer other than the Chief Executive Officer of the Employer; or (5) a material breach by the Company of Section 17 of this Agreement. Notwithstanding the foregoing, you will not be deemed to have resigned for Good Reason unless (x) you provide the Company with notice of the circumstances constituting Good Reason within sixty (60) days after the initial occurrence or existence of such circumstances, (y) the Company fails to correct the circumstance so identified within thirty (30) days after the receipt of such notice (if capable of correction), and (z) the Termination Date occurs no later than one hundred eighty (180) days after the initial occurrence of the event constituting Good Reason.

(D)“Prior Year Bonus” shall mean, for any Termination Date that occurs between January 1 of any fiscal year and the date that annual bonuses are paid by the Company for the immediately preceding year (the “Prior Year”), your target annual bonus (without giving effect to any reduction which constitutes Good Reason) for such Prior Year, unless the Compensation Committee has determined your bonus for such Prior Year, in which case the Prior Year Bonus shall be the bonus determined by the Compensation Committee, if any. The Prior Year Bonus, if any, shall be in lieu of your annual bonus for the Prior Year. There will be no Prior Year Bonus in connection with any Termination Date that occurs on or after the date the Company pays annual bonuses for the Prior Year through the end of the year in which the Termination Date occurs.

(E)“Stub Year Bonus” shall mean the product obtained by multiplying (x) your target annual bonus for the fiscal year in which the Termination Date occurs (without giving effect to any reduction which constitutes Good Reason) multiplied by (y) a fraction, the numerator of which is the number of calendar days that have elapsed in the then current fiscal year through the Termination Date and the denominator of which is 365.

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9.LIMITATION ON PAYMENTS.

(a)Best Pay Cap. Notwithstanding any other provision of this Agreement, in the event that any payment or benefit received or to be received by you (including any payment or benefit received in connection with a termination of your employment, whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement) (all such payments and benefits, including the payments and benefits under Section 8 of this Agreement, the “Total Payments”) would be subject (in whole or part) to the excise tax imposed under Section 4999 of the Code (the “Excise Tax”), then, after taking into account any reduction in the Total Payments provided by reason of Section 280G of the Code in such other plan, arrangement or agreement, your remaining Total Payments shall be reduced to the extent necessary so that no portion of the Total Payments is subject to the Excise Tax, but only if (i) the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income taxes applicable to such reduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such reduced Total Payments) is greater than or equal to (ii) the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income taxes on such Total Payments and the amount of Excise Tax to which you would be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such unreduced Total Payments). The reduction undertaken pursuant to this Section 9(a) shall be accomplished first by reducing or eliminating any cash payments subject to Section 409A of the Code as deferred compensation (with payments to be made furthest in the future being reduced first), then by reducing or eliminating cash payments that are not subject to Section 409A of the Code, then by reducing payments attributable to equity-based compensation (or the accelerated vesting thereof) subject to Section 409A of the Code as deferred compensation (with payments to be made furthest in the future being reduced first), and finally by reducing payments attributable to equity-based compensation (or the accelerated vesting thereof) that is not subject to Section 409A of the Code.

(b)Certain Exclusions. For purposes of determining whether and the extent to which the Total Payments will be subject to the Excise Tax, (i) no portion of the Total Payments, the receipt or retention of which you have waived at such time and in such manner so as not to constitute a “payment” within the meaning of Section 280G(b) of the Code, will be taken into account; (ii) no portion of the Total Payments will be taken into account which, in the written opinion of an independent, nationally recognized accounting firm (the “Independent Advisors”) selected by the Company, does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code (including by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments will be taken into account which, in the opinion of Independent Advisors, constitutes reasonable compensation for services actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in

9

excess of the “base amount” (as defined in Section 280G(b)(3) of the Code) allocable to such reasonable compensation; and (iii) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments shall be determined by the Independent Advisors in accordance with the principles of Sections 280G(d)(3) and (4) of the Code.

10.RESTRICTIVE COVENANTS.

(a)You acknowledge and agree that, concurrently with the execution of this Agreement, you are entering into an agreement with the Company containing certain nondisclosure, intellectual property assignment, non-competition and non-solicitation provisions, in substantially the form attached hereto as Exhibit A (the “Proprietary Information Agreement”), and that you shall be bound by, and shall comply with your obligations under, the Proprietary Information Agreement. Notwithstanding the foregoing, in the event of any inconsistency between the Proprietary Information Agreement and this Agreement, this Agreement shall control.

(b)As a condition of your employment with the Company, you agree that during the Term and thereafter, you will not directly or indirectly disclose or appropriate for your own use, or the use of any third party, any trade secret or confidential information concerning the REIT, the Operating Partnership, the Employer or their respective subsidiaries or affiliates (collectively, the “Digital Group”) or their businesses, whether or not developed by you, except as it is required in connection with your services rendered for the Company. You further agree that, upon termination of your employment, you will not receive or remove from the files or offices of the Digital Group any originals or copies of documents or other materials (physical, electronic or otherwise) of the Digital Group, and that you will return any such documents or materials (physical, electronic or otherwise) otherwise in your possession. You further agree that, upon termination of your employment, you will maintain in strict confidence and not disclose the projects in which any member of the Digital Group is involved or contemplating. You agree that, upon termination of your employment, you will maintain in strict confidence and not disclose the projects in which the Digital Group is involved or contemplating.

(c)You further agree that during the Term and continuing through the first (1^st) anniversary of the date of termination of your employment, you shall not, unless agreed to in writing by the Company, engage in Competition (as defined below). For purposes of this Agreement, “Competition” shall mean acquiring or owning interests in, directly or indirectly, including as a principal, partner, stockholder or manager of any partnership, corporation or any other entity, Technology Real Estate located in the United States, Europe or Asia. “Technology Real Estate” shall mean commercial real estate buildings that are used principally (i) to provide infrastructure required by companies in the data, voice and wireless communications industry, (ii) to provide the physical environment required for businesses in the disaster recovery, IT

10

outsourcing and collocation industries, (iii) to provide highly specialized manufacturing environments for manufacturing of technology products or (iv) as headquarter office facilities for technology companies (or any combination of the foregoing). Notwithstanding the foregoing, “Competition” shall not include (x) your activities as an employee, executive, director, principal, partner, stockholder or manager of the Company or any of its subsidiaries or affiliates, or (y) investments in which you own less than a nine and one-half percent (9.5%) beneficial interest and have no active management role; provided, however, that in the case of investments involving Technology Real Estate described in clause (iv) above, investments in which you own more than nine and one-half percent (9.5%) shall be permitted so long as (A) your aggregate capital invested in the investment is less than $500,000, (B) you own less than a fifty percent (50%) beneficial interest, and (C) you have no active management role.

(d)You further agree that during the Term and continuing through the first (1^st) anniversary of the date of termination of your employment, you will not directly or indirectly solicit, induce, or encourage (i) any then-current employee of any member of the Digital Group to terminate their employment with such member of the Digital Group, or (ii) any consultant, agent, customer, vendor, or other parties doing business with any member of the Digital Group to terminate their agency, or other relationship with such member of the Digital Group or to transfer their business from such member of the Digital Group and you will not initiate discussion with any such person for any such purpose or authorize or knowingly cooperate with the taking of any such actions by any other individual or entity.

(e)For the avoidance of doubt, nothing in this Agreement will prohibit, or be construed to prohibit, you from filing a charge with, reporting possible violations of federal law or regulation to, or participating, cooperating with or providing information (including trade secrets) in confidence to any governmental agency or entity, including but not limited to the Equal Employment Opportunity Commission, the Department of Justice, the Securities and Exchange Commission, the Commodity Futures Trading Commission, Congress, or any agency Inspector General, making other disclosures that are protected under the whistleblower, anti-discrimination, or anti-retaliation provisions of federal, state or local law or regulation, or from providing information (including trade secrets) to your attorney or in a sealed complaint or other document filed in a lawsuit or other governmental proceeding; provided, however, that you may not disclose information of the Digital Group that is protected by the attorney-client privilege, except as otherwise required by law. You do not need the prior authorization of the Company to make any such reports or disclosures, and you are not required to notify the Company that you have made such reports or disclosures.

(f)In recognition of the facts that irreparable injury will result to the Company in the event of a breach by you of your obligations under Sections 10(a), (b), (c) or (d) above, that monetary damages for such breach would not be readily calculable, and that the

11

Company would not have an adequate remedy at law therefor, you acknowledge, consent and agree that in the event of such breach, or the threat thereof, the Company shall be entitled, in addition to any other legal remedies and damages available, to specific performance thereof and to temporary and permanent injunctive relief (without the necessity of posting a bond) to restrain the violation or threatened violation of such obligations by you.

11.CODE SECTION 409A.

(a)     To the extent applicable, this Agreement shall be interpreted and applied consistent and in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder. Notwithstanding any provision of this Agreement to the contrary, if at any time you and the Company mutually determine that any compensation or benefits payable under this Agreement may not be compliant with or exempt from Section 409A of the Code and related Department of Treasury guidance, the parties shall work together to adopt such amendments to this Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take such other actions, as the parties determine are necessary or appropriate to (i) exempt such compensation and benefits from Section 409A of the Code and/or preserve the intended tax treatment of such compensation and benefits, or (ii) comply with the requirements of Section 409A of the Code and related Department of Treasury guidance; provided, however, that this Section 11(a) shall not create any obligation on the part of the Company to adopt any such amendment, policy or procedure or take any such other action.

(b)     To the extent permitted under Section 409A of the Code, any separate payment or benefit under this Agreement or otherwise shall not be deemed “nonqualified deferred compensation” subject to Section 409A of the Code and Section 8(f) hereof to the extent provided in the exceptions in Treasury Regulation Section 1.409A-1(b)(4), Section 1.409A-1(b)(9) or any other applicable exception or provision of Section 409A of the Code.

(c)     To the extent that compensation or benefits payable under Section 8 of this Agreement (i) constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code or (ii) are intended to be exempt from Section 409A of the Code under Treasury Regulation Section 1.409A-1(b)(9)(iii), and are designated under this Agreement as payable upon (or within a specified time following) your termination of employment, such compensation or benefits shall, subject to Section 8(f) hereof, be payable only upon (or, as applicable, within the specified time following) your “separation from service” from the Company (within the meaning of Section 409A(a)(2)(A)(i) of the Code).

(d)     To the extent that any payments or reimbursements provided to you under this Agreement are deemed to constitute compensation to which Treasury Regulation Section

12

1.409A-3(i)(1)(iv) would apply, such amounts shall be paid or reimbursed to you reasonably promptly, but not later than December 31 of the year following the year in which the expense was incurred. The amount of any such payments eligible for reimbursement in one year shall not affect the payments or expenses that are eligible for payment or reimbursement in any other taxable year, and your right to such payments or reimbursement shall not be subject to liquidation or exchange for any other benefit.

12.COMPANY RULES AND REGULATIONS. As an employee of the Company, you agree to abide by Company rules and regulations as set forth in the Company’s Employee Handbook, Code of Business Conduct and Ethics, Insider Trading Policy and as otherwise promulgated.

13.PAYMENT OF FINANCIAL OBLIGATIONS. In the event that your employment or consultancy is shared among the Company and/or its subsidiaries and affiliates, the payment or provision to you by the Company of any remuneration, benefits or other financial obligations pursuant to this Agreement may be allocated to the Company and, as applicable, its subsidiaries and/or affiliates in accordance with an employee sharing or expense allocation agreement entered into by such parties.

14.WITHHOLDING. The Company may withhold from any amounts payable under this Agreement such Federal, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation.

15.ARBITRATION. Except as set forth in Section 10(f) above, any disagreement, dispute, controversy or claim arising out of or relating to this Agreement or the interpretation of this Agreement or any arrangements relating to this Agreement or contemplated in this Agreement or the breach, termination or invalidity thereof shall be settled by final and binding arbitration before a single neutral arbitrator. Arbitration shall be administered by JAMS in San Francisco, California in accordance with the then existing JAMS Arbitration Rules and Procedures for Employment Disputes. Except as provided herein, the Federal Arbitration Act shall govern the interpretation, enforcement and all proceedings. The arbitrator shall apply the substantive law (and the law of remedies, if applicable) of the state of California, or federal law, or both, as applicable, and the arbitrator is without jurisdiction to apply any different substantive law. The arbitrator shall have the authority to entertain a motion to dismiss and/or a motion for summary judgment by any party and shall apply the standards governing such motions under the Federal Rules of Civil Procedure. Judgment upon the award may be entered in any court having jurisdiction thereof. Each party shall pay his or its own attorneys’ fees and costs of suit associated with such arbitration to the extent permitted by applicable law, and the Company shall pay the administrative fees and all arbitrator fees associated with such arbitration; provided,

13

however, that if you prevail in such arbitration, the Company shall reimburse you for the reasonable attorneys’ fees actually incurred by you in connection with such arbitration.

16.ENTIRE AGREEMENT. As of the Effective Date, this Agreement, together with the Proprietary Information Agreement, constitutes the final, complete and exclusive agreement between you and the Company with respect to the subject matter hereof and replaces and supersedes any and all other agreements, offers or promises, whether oral or written, made to you by any member of the Digital Group. This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives.

17.ASSUMPTION BY SUCCESSOR. The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.

18.ACKNOWLEDGEMENT. You hereby acknowledge (a) that you have consulted with or have had the opportunity to consult with independent counsel of your own choice concerning this Agreement, and have been advised to do so by the Company, and (b) that you have read and understand this Agreement, are fully aware of its legal effect, and have entered into it freely based on your own judgment.

19.GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflicts of laws principles thereof.

[SIGNATURE PAGE FOLLOWS]

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Please confirm your agreement to the foregoing by signing and dating the enclosed duplicate original of this Agreement in the space provided below for your signature and returning it to Cindy Fiedelman. Please retain one fully-executed original for your files.

Sincerely,

Digital Realty Trust, Inc., a Maryland corporation By: /s/ Cindy Fiedelman Name: Cindy Fiedelman Title: Chief Human Resources Officer	DLR LLC, a Maryland limited liability company By: Digital Realty Trust, L.P. Its: Managing Member By: Digital Realty Trust, Inc. Its: General Partner By: /s/ Cindy Fiedelman Name: Cindy Fiedelman Title: Chief Human Resources Officer
Digital Realty Trust, L.P., a Maryland limited partnership By: Digital Realty Trust, Inc. Its: General Partner By: /s/ Cindy Fiedelman Name: Cindy Fiedelman Title: Chief Human Resources Officer Accepted and Agreed, By: /s/ Daniel W. Papes    Daniel W. Papes

15

Exhibit A

Proprietary Information Agreement

[See attached.]

16

EX-10.3

AMENDMENT NO. 1 TO THEGLOBAL SENIOR CREDIT AGREEMENT

Dated as of December 20, 2017

AMENDMENT NO. 1 TO THE GLOBAL SENIOR CREDIT AGREEMENT (this “Amendment”) among DIGITAL REALTY TRUST, L.P., a Maryland limited partnership (the “OperatingPartnership”), DIGITAL SINGAPORE JURONG EAST PTE. LTD., a Singapore private limited company (the “Initial Singapore Borrower 1”), DIGITAL HK JV HOLDING LIMITED, a British Virgin Islands limited company (the “Initial Singapore Borrower 2”), DIGITAL REALTY MAURITIUS HOLDINGS LIMITED, a Republic of Mauritius private company (the “Initial Singapore Borrower 3”), DIGITAL STOUT HOLDING, LLC, a Delaware limited liability company (the “Initial Multicurrency Borrower 1”), DIGITAL GOUGH, LLC, a Delaware limited liability company (the “Initial Multicurrency Borrower 2”), DIGITAL JAPAN, LLC, a Delaware limited liability company (the “Initial Multicurrency Borrower 3”), DIGITAL EURO FINCO, L.P., a Scottish limited partnership (the “Initial Multicurrency Borrower 4”), MOOSE VENTURES LP, a Delaware limited partnership (the “Multicurrency Borrower 5”),DIGITAL OSAKA 2 TMK, a Japanese tokutei mokuteki kaisha (the “Yen Borrower 1”), DIGITAL OSAKA 3 TMK, a Japanese tokutei mokuteki kaisha (the “Yen Borrower 2”) and DIGITAL AUSTRALIA FINCO PTY LTD, an Australian proprietary limited company (the “Initial Australia Borrower”; and collectively with the Operating Partnership, the Initial Singapore Borrower 1, the Initial Singapore Borrower 2, the Initial Singapore Borrower 3, the Initial Multicurrency Borrower 1, the Initial Multicurrency Borrower 2, the Initial Multicurrency Borrower 3, the Initial Multicurrency Borrower 4, the Multicurrency Borrower 5, the Yen Borrower 1, the Yen Borrower 2 and the Initial Australia Borrower and any Additional Borrowers, the “Borrowers” and each individually, a “Borrower”), DIGITAL REALTY TRUST, INC., a Maryland corporation (the “Parent Guarantor”), DIGITAL EURO FINCO, LLC, a Delaware limited liability company (the “New Guarantor”; and collectively with the Operating Partnership, the Parent Guarantor, the New Guarantor and any Additional Guarantors, the “Guarantors” and each individually, a “Guarantor”) and CITIBANK, N.A. (“Citibank”), as administrative agent for the Lender Parties (the “Administrative Agent”).

PRELIMINARY STATEMENTS:

(1)    The Borrowers, the Guarantors, the Lender Parties, the Administrative Agent and the other financial institutions party thereto entered into a Global Senior Credit Agreement dated as of January 15, 2016 (the “Existing Revolving Credit Agreement”); capitalized terms not otherwise defined in this Amendment have the same meanings as specified in the Existing Revolving Credit Agreement, as amended hereby;

(2)    The Administrative Agent and the Borrowers have jointly identified an error of a technical nature in the Existing Revolving Credit Agreement and wish to amend the Existing Revolving Credit Agreement to clarify that Swing Line Borrowings in Canadian Dollars may be made by any Multicurrency Borrower under the Multicurrency Swing Line Facility; and

(3)    Subject to the terms and conditions herein, the Borrowers and the Administrative Agent have agreed, pursuant to the second sentence of Section 9.01(a) of the Existing Revolving Credit Agreement, to amend the Existing Revolving Credit Agreement on the terms and subject to the conditions hereinafter set forth.

SECTION 1.Amendment to Existing Revolving Credit Agreement. The Existing Revolving Credit Agreement is, upon the occurrence of the Amendment Effective Date (as defined in Section 3 below), hereby amended by deleting the following phrase from the definition of “Multicurrency Borrower” set forth in Section 1.01 thereof: “; provided, however, that only the Initial Multicurrency Borrower 2 shall be permitted to

1

act as the Borrower in respect of any Swing Line Borrowing in Canadian Dollars under the Multicurrency Swing Line Facility”.

SECTION 2.Conditions of Effectiveness. This Amendment shall become effective as of the first date (the “Amendment Effective Date”) on which, and only if, each of the following conditions precedent shall have been satisfied:

(a)The Administrative Agent shall have received on or before the date hereof, each dated such date, in form and substance satisfactory to the Administrative Agent:

(i)Counterparts of this Amendment executed by the Borrowers.

(ii)The consent attached hereto (the “Consent”) executed by each of the Guarantors.

(b)The Administrative Agent shall not have received, within ten (10) Business Days following the receipt of notice of this Amendment by the Tranche Required Lenders in respect of the Multicurrency Revolving Credit Tranche, an objection to this Amendment in writing from the Tranche Required Lenders in respect of the Multicurrency Revolving Credit Tranche.

SECTION 3.Reference to and Effect on the Existing Revolving Credit Agreement, the Notes and the Loan Documents.

(a)On and after the effectiveness of this Amendment, each reference in the Existing Revolving Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Existing Revolving Credit Agreement, and each reference in the Notes and each of the other Loan Documents to “the Loan Agreement”, “thereunder”, “thereof” or words of like import referring to the Existing Revolving Credit Agreement, shall mean and be a reference to the Existing Revolving Credit Agreement, as amended and modified by this Amendment.

(b)The Existing Revolving Credit Agreement, the Notes and each of the other Loan Documents, as specifically amended by this Amendment, are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed.

(c)The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or the Administrative Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.

(d)This Amendment shall not extinguish the obligations for the payment of money outstanding under the Existing Revolving Credit Agreement. Nothing herein contained shall be construed as a substitution or novation of the obligations outstanding under the Existing Revolving Credit Agreement, which shall remain in full force and effect, except to any extent modified hereby or as provided in the exhibits hereto. Nothing implied in this Amendment or in any other document contemplated hereby shall be construed as a release or other discharge of any of the Loan Parties from the Loan Documents.

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SECTION 4.Costs and Expenses. The Borrowers agree to pay on demand all reasonable out-of-pocket costs and expenses of the Administrative Agent in connection with the preparation, execution, delivery and administration, modification and amendment of this Amendment and the other instruments and documents to be delivered hereunder (including, without limitation, the reasonable fees and expenses of counsel for the Administrative Agent) in accordance with the terms of Section 9.04 of the Existing Revolving Credit Agreement.

SECTION 5.Execution in Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement. Delivery of an executed counterpart of a signature page to this Amendment by facsimile shall be effective as delivery of a manually executed counterpart of this Amendment.

SECTION 6.Governing Law. This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York.

[Balance of page intentionally left blank.]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized, as of the date first above written.

BORROWERS:

DIGITAL REALTY TRUST, L.P.,

a Maryland limited partnership

By: DIGITAL REALTY TRUST, INC.,

its sole general partner

By:    /s/ Michael Brown        

Name: Michael Brown

Title: Vice President, Treasury

DIGITAL SINGAPORE JURONG EAST PTE. LTD.,

a Singapore private company limited by shares

By:    /s/ Michael Brown        

Name: Michael Brown
Title:Vice President, Treasury

DIGITAL EURO FINCO, L.P.,

a Scotland limited partnership

By: DIGITAL EURO FINCO GP, LLC

its general partner

By: DIGITAL REALTY TRUST, L.P.,

its member

By: DIGITAL REALTY TRUST, INC.,

its general partner

By: /s/ Michael Brown        

Name: Michael Brown

Title: Vice President, Treasury

DIGITAL HK JV HOLDING LIMITED,

a British Virgin Islands limited company

By:    /s/ Michael Brown     Name: Michael Brown

Title: Vice President, Treasury

Signature Page

DIGITAL REALTY MAURITIUS HOLDINGS LIMITED,

a Mauritius private company limited by shares

By: /s/ Michael Brown     Name: Michael Brown
Title: Vice President, Treasury

DIGITAL AUSTRALIA FINCO PTY LTD,

an Australian proprietary limited company

By:    /s/ Michael Brown                Name: Michael Brown    Title: Vice President, Treasury

DIGITAL STOUT HOLDING, LLC,
a Delaware limited liability company

By: Digital Realty Trust, L.P.,
its manager

By: Digital Realty Trust, Inc.,
its general partner

By: /s/ Michael Brown            

Name: Michael Brown

Title: Vice President, Treasury

DIGITAL GOUGH, LLC,

a Delaware limited liability company

By: Digital Realty Trust, L.P.,
     its manager

By: Digital Realty Trust, Inc.,
its general partner 

     By: /s/ Michael Brown             

     Name: Michael Brown

Title: Vice President, Treasury

Signature Page

DIGITAL JAPAN, LLC,

a Delaware limited liability company

By: Digital Asia, LLC,

its member

By: Digital Realty Trust, L.P.,

its manager

By Digital Realty Trust, Inc.,

its general partner

By: /s/ Michael Brown            

Name: Michael Brown

Title: Vice President, Treasury    

DIGITAL OSAKA 2 TMK,

a Japan tokutei mokuteki kaisha

By:    /s/ Michael Brown                Name: Michael Brown    Title: Vice President, Treasury

DIGITAL OSAKA 3 TMK,

a Japan tokutei mokuteki kaisha

By:    /s/ Michael Brown                Name: Michael Brown    Title: Vice President, Treasury

MOOSE VENTURES LP,

a Delaware limited partnership

By:    /s/ Michael Brown                Name: Michael Brown    Title: Vice President, Treasury

Signature Page

Signature Page

ADMINISTRATIVE AGENT:

CITIBANK, N.A.,as Administrative Agent

By: /s/ Christopher J. Albano        

Name: Christopher J. Albano

Title: Authorized Signatory

Signature Page

ACKNOWLEDGED AND AGREED

CITIBANK, N.A.,CANADIAN BRANCH, as Swing Line Bank

By: /s/ Christopher J. Albano        

Name: Christopher J. Albano

Title: Authorized Signatory

Signature Page

CONSENT

Dated as of December 20, 2017

Each of the undersigned, as a Guarantor under the Existing Revolving Credit Agreement referred to in the foregoing Amendment, hereby consents to such Amendment and hereby confirms and agrees that notwithstanding the effectiveness of such Amendment, the Guaranty contained in the Existing Revolving Credit Agreement is and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects, except that, on and after the effectiveness of such Amendment, each reference in the Loan Documents to “Loan Agreement”, “thereunder”, “thereof” or words of like import shall mean and be a reference to the Existing Revolving Credit Agreement, as amended and modified by such Amendment.

[Balance of page intentionally left blank.]

GUARANTORS:

DIGITAL REALTY TRUST, L.P.,a Maryland limited partnership

By:    DIGITAL REALTY TRUST, INC.,

    its sole general partner

By: /s/ Michael Brown            

Name: Michael Brown

Title: Vice President, Treasury

DIGITAL REALTY TRUST, INC.,

a Maryland corporation

By: /s/ Michael Brown            

Name: Michael Brown

Title: Vice President, Treasury

DIGITAL EURO FINCO, LLC,

a Delaware limited liability company

By:    DITIGAL EURO FINCO, L.P.,

its Sole Member

By:    DIGITAL EURO FINCO GP, LLC,

its General Partner

By:    DIGITAL REALTY TRUST, L.P.,

its Sole Member

By:    DIGITAL REALTY TRUST, INC.,

its General Partner

By: /s/ Michael Brown            

Name: Michael Brown

Title: Vice President, Treasury

EX-12.1

Exhibit 12.1

Digital Realty Trust, Inc. and Subsidiaries

Statement of Computation of Ratios

(in thousands, except ratios)

	Three Months Ended March 31,					Year Ended December 31,
	2018		2017			2017			2016			2015			2014			2013
Income from continuing operations before noncontrolling interests	$	110,095	$	84,563		$	256,267		$	431,852		$	301,591		$	203,415		$	320,449
Interest expense	76,985		55,450			258,642			236,480			201,435			191,085			189,399
Interest within rental expense (1)	7,022		7,215			27,490			27,879			8,208			5,393			7,687
Noncontrolling interests in consolidated joint ventures	12		(121		)	(4,238		)	(367		)	(460		)	(465		)	(595		)
Earnings available to cover fixed charges	$	194,114	$	147,107		$	538,161		$	695,844		$	510,774		$	399,428		$	516,940
Fixed charges:
Interest expense	$	76,985	$	55,450		$	258,642		$	236,480		$	201,435		$	191,085		$	189,399
Interest within rental expense (1)	7,022		7,215			27,490			27,879			8,208			5,393			7,687
Capitalized interest	7,385		4,614			21,714			16,324			12,851			20,373			26,277
Total fixed charges	91,392		67,279			307,846			280,683			222,494			216,851			223,363
Preferred stock dividends	20,329		17,393			68,802			83,771			79,423			67,465			42,905
Fixed charges and preferred stock dividends	$	111,721	$	84,672		$	376,648		$	364,454		$	301,917		$	284,316		$	266,268
Ratio of earnings to fixed charges	2.12		2.19			1.75			2.48			2.30			1.84			2.31
Ratio of earnings to fixed charges and preferred stock dividends	1.74		1.74			1.43			1.91			1.69			1.40			1.94

(1) Interest within rental expense represents one-third of rental expense (the approximate portion of rental expense representing interest).

Digital Realty Trust, L.P. and Subsidiaries

Statement of Computation of Ratios

(in thousands, except ratios)

	Three Months Ended March 31,					Year Ended December 31,
	2018		2017			2017			2016			2015			2014			2013
Income from continuing operations before noncontrolling interests	$	110,095	$	84,563		$	256,267		$	431,852		$	300,226		$	203,415		$	320,449
Interest expense	76,985		55,450			258,642			236,480			202,800			191,085			189,399
Interest within rental expense (1)	7,022		7,215			27,490			27,879			8,208			5,393			7,687
Noncontrolling interests in consolidated joint ventures	12		(121		)	(4,238		)	(367		)	(460		)	(465		)	(595		)
Earnings available to cover fixed charges	$	194,114	$	147,107		$	538,161		$	695,844		$	510,774		$	399,428		$	516,940
Fixed charges:
Interest expense	$	76,985	$	55,450		$	258,642		$	236,480		$	202,800		$	191,085		$	189,399
Interest within rental expense (1)	7,022		7,215			27,490			27,879			8,208			5,393			7,687
Capitalized interest	7,385		4,614			21,714			16,324			12,851			20,373			26,277
Total fixed charges	91,392		67,279			307,846			280,683			223,859			216,851			223,363
Preferred unit distributions	20,329		17,393			68,802			83,771			79,423			67,465			42,905
Fixed charges and preferred unit distributions	$	111,721	$	84,672		$	376,648		$	364,454		$	303,282		$	284,316		$	266,268
Ratio of earnings to fixed charges	2.12		2.19			1.75			2.48			2.28			1.84			2.31
Ratio of earnings to fixed charges and preferred unit distributions	1.74		1.74			1.43			1.91			1.68			1.40			1.94

(1) Interest within rental expense represents one-third of rental expense (the approximate portion of rental expense representing interest).

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, A. William Stein, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Digital Realty Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:	May 8, 2018
By:	/s/    A. WILLIAM STEIN
	A. William Stein
	Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Andrew P. Power, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Digital Realty Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:	May 8, 2018
By:	/s/    ANDREW P. POWER
	Andrew P. Power
	Chief Financial Officer
	(Principal Financial Officer)

EX-31.3

Exhibit 31.3

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, A. William Stein, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Digital Realty Trust, L.P.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:	May 8, 2018
By:	/s/    A. WILLIAM STEIN
	A. William Stein
	Chief Executive Officer
	(Principal Executive Officer)
	Digital Realty Trust, Inc., sole general partner of
	Digital Realty Trust, L.P.

EX-31.4

Exhibit 31.4

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Andrew P. Power, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Digital Realty Trust, L.P.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:	May 8, 2018
By:	/s/    ANDREW P. POWER
	Andrew P. Power
	Chief Financial Officer
	(Principal Financial Officer)
	Digital Realty Trust, Inc., sole general partner of
	Digital Realty Trust, L.P.

EX-32.1

Exhibit 32.1

Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as

Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. § 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Digital Realty Trust, Inc. (the “Company”) hereby certifies, to such officer’s knowledge, that:

(i) the accompanying Quarterly Report on Form 10-Q of the Company for the quarterly period ended March 31, 2018 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.

Dated:	May 8, 2018
	/s/    A. WILLIAM STEIN
	A. William Stein
	Chief Executive Officer
	(Principal Executive Officer)

Pursuant to Securities and Exchange Commission Release 33-8238, dated June 5, 2003, this certification is being furnished and shall not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or incorporated by reference in any registration statement of the Company filed under the Securities Act of 1933, as amended.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as

Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. § 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Digital Realty Trust, Inc. (the “Company”) hereby certifies, to such officer’s knowledge, that:

(i) the accompanying Quarterly Report on Form 10-Q of the Company for the quarterly period ended March 31, 2018 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.

Dated:	May 8, 2018
	/s/    ANDREW P. POWER
	Andrew P. Power
	Chief Financial Officer
	(Principal Financial Officer)

Pursuant to Securities and Exchange Commission Release 33-8238, dated June 5, 2003, this certification is being furnished and shall not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or incorporated by reference in any registration statement of the Company filed under the Securities Act of 1933, as amended.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.3

Exhibit 32.3

Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as

Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. § 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Digital Realty Trust, Inc., in its capacity as the sole general partner of Digital Realty Trust, L.P. (the “Operating Partnership”), hereby certifies, to such officer’s knowledge, that:

(i) the accompanying Quarterly Report on Form 10-Q of the Operating Partnership for the quarterly period ended March 31, 2018 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Operating Partnership at the dates and for the periods indicated.

Dated:	May 8, 2018
	/s/    A. WILLIAM STEIN
	A. William Stein
	Chief Executive Officer
	(Principal Executive Officer)
	Digital Realty Trust, Inc., sole general partner of
	Digital Realty Trust, L.P.

Pursuant to Securities and Exchange Commission Release 33-8238, dated June 5, 2003, this certification is being furnished and shall not be deemed filed by the Operating Partnership for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or incorporated by reference in any registration statement of the Operating Partnership filed under the Securities Act of 1933, as amended.

A signed original of this written statement required by Section 906 has been provided to the Operating Partnership and will be retained by the Operating Partnership and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.4

Exhibit 32.4

Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as

Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. § 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Digital Realty Trust, Inc., in its capacity as the sole general partner of Digital Realty Trust, L.P. (the “Operating Partnership”), hereby certifies, to such officer’s knowledge, that:

(i) the accompanying Quarterly Report on Form 10-Q of the Operating Partnership for the quarterly period ended March 31, 2018 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Operating Partnership at the dates and for the periods indicated.

Dated:	May 8, 2018
	/s/    ANDREW P. POWER
	Andrew P. Power
	Chief Financial Officer
	(Principal Financial Officer)
	Digital Realty Trust, Inc., sole general partner of
	Digital Realty Trust, L.P.

Pursuant to Securities and Exchange Commission Release 33-8238, dated June 5, 2003, this certification is being furnished and shall not be deemed filed by the Operating Partnership for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or incorporated by reference in any registration statement of the Operating Partnership filed under the Securities Act of 1933, as amended.

A signed original of this written statement required by Section 906 has been provided to the Operating Partnership and will be retained by the Operating Partnership and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 04, 2018
Entity Information [Line Items]
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Registrant Name	Digital Realty Trust, Inc.
Entity Central Index Key	0001297996
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		205,952,755
Digital Realty Trust, L.P.
Entity Information [Line Items]
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Registrant Name	Digital Realty Trust, L.P.
Entity Central Index Key	0001494877
Entity Filer Category	Non-accelerated Filer

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Properties:
Land	$ 1,140,537	$ 1,136,341
Acquired ground leases	11,516	11,150
Buildings and improvements	15,645,624	15,215,405
Tenant improvements	563,735	553,040
Total investments in properties	17,361,412	16,915,936
Accumulated depreciation and amortization	(3,439,050)	(3,238,227)
Net investments in properties	13,922,362	13,677,709
Investments in unconsolidated joint ventures	167,564	163,477
Net investments in real estate	14,089,926	13,841,186
Cash and cash equivalents	22,370	51
Accounts and other receivables, net of allowance for doubtful accounts of $6,906 and $6,737 as of March 31, 2018 and December 31, 2017, respectively	309,328	276,347
Deferred rent	442,887	430,026
Acquired above-market leases, net	165,568	184,375
Goodwill	3,405,110	3,389,595
Acquired in-place lease value, deferred leasing costs and intangibles, net	2,928,566	2,998,806
Restricted cash	7,330	13,130
Assets held for sale	41,707	139,538
Other assets	169,125	131,291
Total assets	21,581,917	21,404,345
LIABILITIES AND EQUITY
Unsecured senior notes, net	6,660,727	6,570,757
Mortgage loans, including premiums, net	106,366	106,582
Accounts payable and other accrued liabilities	1,012,490	980,218
Accrued dividends and distributions	0	199,761
Acquired below-market leases, net	225,674	249,465
Security deposits and prepaid rents	207,859	217,898
Obligations associated with assets held for sale	1,767	5,033
Total liabilities	10,595,502	10,300,993
Redeemable noncontrolling interests – operating partnership	49,871	53,902
Commitments and contingencies
Stockholders’ Equity:
Preferred Stock	1,249,560	1,249,560
Common Stock: $0.01 par value per share, 315,000,000 shares authorized, 205,874,914 and 205,470,300 shares issued and outstanding as of March 31, 2018 and December 31, 2017, respectively	2,045	2,044
Partners’ capital:
Additional paid-in capital	11,283,489	11,261,461
Accumulated dividends in excess of earnings	(2,177,269)	(2,055,552)
Accumulated other comprehensive loss, net	(103,974)	(108,432)
Total stockholders’ equity	10,253,851	10,349,081
Noncontrolling Interests:
Noncontrolling interests in operating partnership	680,400	698,126
Noncontrolling interests in consolidated joint ventures	2,293	2,243
Total noncontrolling interests	682,693	700,369
Total equity	10,936,544	11,049,450
Total liabilities and equity/capital	21,581,917	21,404,345
Digital Realty Trust, L.P.
Properties:
Land	1,140,537	1,136,341
Acquired ground leases	11,516	11,150
Buildings and improvements	15,645,624	15,215,405
Tenant improvements	563,735	553,040
Total investments in properties	17,361,412	16,915,936
Accumulated depreciation and amortization	(3,439,050)	(3,238,227)
Net investments in properties	13,922,362	13,677,709
Investments in unconsolidated joint ventures	167,564	163,477
Net investments in real estate	14,089,926	13,841,186
Cash and cash equivalents	22,370	51
Accounts and other receivables, net of allowance for doubtful accounts of $6,906 and $6,737 as of March 31, 2018 and December 31, 2017, respectively	309,328	276,347
Deferred rent	442,887	430,026
Acquired above-market leases, net	165,568	184,375
Goodwill	3,405,110	3,389,595
Acquired in-place lease value, deferred leasing costs and intangibles, net	2,928,566	2,998,806
Restricted cash	7,330	13,130
Assets held for sale	41,707	139,538
Other assets	169,125	131,291
Total assets	21,581,917	21,404,345
LIABILITIES AND EQUITY
Unsecured senior notes, net	6,660,727	6,570,757
Mortgage loans, including premiums, net	106,366	106,582
Accounts payable and other accrued liabilities	1,012,490	980,218
Accrued dividends and distributions	0	199,761
Acquired below-market leases, net	225,674	249,465
Security deposits and prepaid rents	207,859	217,898
Obligations associated with assets held for sale	1,767	5,033
Total liabilities	10,595,502	10,300,993
Redeemable noncontrolling interests – operating partnership	49,871	53,902
Commitments and contingencies
Stockholders’ Equity:
Preferred Stock	1,249,560	1,249,560
Partners’ capital:
Common units, 205,874,914 and 205,470,300 units issued and outstanding as of March 31, 2018 and December 31, 2017, respectively	9,108,265	9,207,953
Limited Partners, 8,736,488 and 8,489,095 units issued and outstanding as of March 31, 2018 and December 31, 2017, respectively	684,673	702,579
Accumulated other comprehensive loss, net	(108,247)	(112,885)
Total partners’ capital	10,934,251	11,047,207
Noncontrolling Interests:
Noncontrolling interests in consolidated joint ventures	2,293	2,243
Total capital	10,936,544	11,049,450
Total liabilities and equity/capital	21,581,917	21,404,345
Global revolving credit facility, net
LIABILITIES AND EQUITY
Line of credit	952,121	550,946
Global revolving credit facility, net | Digital Realty Trust, L.P.
LIABILITIES AND EQUITY
Line of credit	952,121	550,946
Unsecured term loan, net
LIABILITIES AND EQUITY
Line of credit	1,428,498	1,420,333
Unsecured term loan, net | Digital Realty Trust, L.P.
LIABILITIES AND EQUITY
Line of credit	$ 1,428,498	$ 1,420,333

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Accounts and other receivables, net of allowance for doubtful accounts	$ 6,906	$ 6,737
Preferred stock, par value (in dollars per share/unit)	$ 0.01	$ 0.01
Preferred stock, authorized (shares)	110,000,000	110,000,000
Preferred stock, issued (shares)	50,650,000	50,650,000
Preferred stock, outstanding (shares)	50,650,000	50,650,000
Common stock, par value (in dollars per share/unit)	$ 0.01	$ 0.01
Common stock, authorized (shares)	315,000,000	315,000,000
Common stock, shares, issued (shares)	205,874,914	205,470,300
Common stock, shares, outstanding (shares)	205,874,914	205,470,300
Digital Realty Trust, L.P.
Accounts and other receivables, net of allowance for doubtful accounts	$ 6,906	$ 6,737
Preferred units, issued (units)	50,650,000	50,650,000
Preferred units, outstanding (units)	50,650,000	50,650,000
Common units, issued (units)	205,874,914	205,470,300
Common units, outstanding (units)	205,874,914	205,470,300
Limited Partners' units, issued (units)	8,736,488	8,489,095
Limited Partners' units outstanding (units)	8,736,488	8,489,095

XML

Condensed Consolidated Income Statements - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating Revenues:
Rental and other services	$ 592,298	$ 461,351
Tenant reimbursements	150,079	87,288
Fee income	1,133	1,895
Other	858	35
Total operating revenues	744,368	550,569
Operating Expenses:
Rental property operating and maintenance	225,640	169,339
Property taxes	35,263	26,919
Insurance	3,731	2,592
Depreciation and amortization	294,789	176,466
General and administrative	36,523	34,647
Transactions and integration	4,178	3,323
Other	431	0
Total operating expenses	600,555	413,286
Operating income	143,813	137,283
Other Income (Expenses):
Equity in earnings of unconsolidated joint ventures	7,410	5,324
Gain (loss) on sale of properties	39,273	(522)
Interest and other (expense) income	(42)	151
Interest expense	(76,985)	(55,450)
Tax expense	(3,374)	(2,223)
Net income	110,095	84,563
Net income attributable to noncontrolling interests	(3,468)	(1,025)
Net income attributable to Digital Realty Trust, Inc./Digital Realty Trust, L.P.	106,627	83,538
Preferred stock/unit dividends/distributions	(20,329)	(17,393)
Net income available to common stock/unitholders	$ 86,298	$ 66,145
Net income per share/unit available to common stockholders/unitholders:
Basic (in dollars per share/unit)	$ 0.42	$ 0.42
Diluted (in dollars per share/unit)	$ 0.42	$ 0.41
Weighted average common shares/units outstanding:
Basic (shares/units)	205,714,173	159,297,027
Diluted (shares/units)	206,507,476	160,421,655
Digital Realty Trust, L.P.
Operating Revenues:
Rental and other services	$ 592,298	$ 461,351
Tenant reimbursements	150,079	87,288
Fee income	1,133	1,895
Other	858	35
Total operating revenues	744,368	550,569
Operating Expenses:
Rental property operating and maintenance	225,640	169,339
Property taxes	35,263	26,919
Insurance	3,731	2,592
Depreciation and amortization	294,789	176,466
General and administrative	36,523	34,647
Transactions and integration	4,178	3,323
Other	431	0
Total operating expenses	600,555	413,286
Operating income	143,813	137,283
Other Income (Expenses):
Equity in earnings of unconsolidated joint ventures	7,410	5,324
Gain (loss) on sale of properties	39,273	(522)
Interest and other (expense) income	(42)	151
Interest expense	(76,985)	(55,450)
Tax expense	(3,374)	(2,223)
Net income	110,095	84,563
Net income attributable to noncontrolling interests	12	(121)
Net income attributable to Digital Realty Trust, Inc./Digital Realty Trust, L.P.	110,107	84,442
Preferred stock/unit dividends/distributions	(20,329)	(17,393)
Net income available to common stock/unitholders	$ 89,778	$ 67,049
Net income per share/unit available to common stockholders/unitholders:
Basic (in dollars per share/unit)	$ 0.42	$ 0.42
Diluted (in dollars per share/unit)	$ 0.42	$ 0.41
Weighted average common shares/units outstanding:
Basic (shares/units)	214,009,460	161,474,901
Diluted (shares/units)	214,802,763	162,599,529

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Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net income	$ 110,095	$ 84,563
Other comprehensive income (loss):
Foreign currency translation adjustments	(3,743)	16,578
Increase (decrease) in fair value of interest rate swaps and foreign currency hedges	8,616	(4,364)
Reclassification to interest expense from interest rate swaps	(235)	1,030
Comprehensive income	114,733	97,807
Comprehensive income attributable to noncontrolling interests	(3,648)	(1,204)
Comprehensive income attributable to Digital Realty Trust, Inc./Digital Realty Trust, L.P.	111,085	96,603
Digital Realty Trust, L.P.
Net income	110,095	84,563
Other comprehensive income (loss):
Foreign currency translation adjustments	(3,743)	16,578
Increase (decrease) in fair value of interest rate swaps and foreign currency hedges	8,616	(4,364)
Reclassification to interest expense from interest rate swaps	(235)	1,030
Comprehensive income	114,733	97,807
Comprehensive income attributable to noncontrolling interests	12	(121)
Comprehensive income attributable to Digital Realty Trust, Inc./Digital Realty Trust, L.P.	$ 114,745	$ 97,686

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Condensed Consolidated Statement of Equity - 3 months ended Mar. 31, 2018 - USD ($) $ in Thousands	Total	Redeemable Noncontrolling Interests -- Operating Partnership	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Dividends in Excess of Earnings	Accumulated Other Comprehensive Loss, Net	Total Stockholders’ Equity	Noncontrolling Interests in Operating Partnership	Noncontrolling Interests in Consolidated Joint Ventures	Total Noncontrolling Interests	DFT Company	DFT Company Total Stockholders’ Equity
Beginning balance at Dec. 31, 2017	$ 11,049,450	$ 53,902	$ 1,249,560	$ 2,044	$ 11,261,461	$ (2,055,552)	$ (108,432)	$ 10,349,081	$ 698,126	$ 2,243	$ 700,369
Beginning balance (shares) at Dec. 31, 2017				205,470,300
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of common units to common stock				$ 2	15,199			15,201	(15,201)		(15,201)
Conversion of common units to common stock (shares)				168,367
Issuance of unvested restricted stock, net of forfeitures (shares)				251,187
Issuance of common stock, net of offering costs	(12)				(12)			(12)
Shares issued under employee stock purchase plan	2,509				2,509			2,509
Shares issued under employee stock purchase plan (shares)				31,893
Shares repurchased and retired to satisfy tax withholding upon vesting				$ (1)	(4,717)							$ (4,718)	$ (4,718)
Shares repurchased and retired to satisfy tax withholding upon vesting (shares)				(46,833)
Amortization of share-based compensation	7,515				7,515			7,515
Reclassification of vested share-based awards					(2,497)			(2,497)	2,497		2,497
Adjustment to redeemable noncontrolling interests—operating partnership	4,031	4,031			4,031			4,031
Dividends declared on preferred stock	(20,329)					(20,329)		(20,329)
Dividends and distributions on common stock and common and incentive units	(216,697)					(208,015)		(208,015)	(8,682)		(8,682)
Distributions to noncontrolling interests in consolidated joint ventures, net of contributions	(62)									(62)	(62)
Net income	110,095					106,627		106,627	3,480	(12)	3,468
Other comprehensive loss—foreign currency translation adjustments	(3,743)						(3,598)	(3,598)	(145)		(145)
Other comprehensive income—fair value of interest rate swaps and foreign currency hedges	8,616						8,282	8,282	334		334
Other comprehensive loss—reclassification of accumulated other comprehensive income to interest expense	(235)						(226)	(226)	(9)		(9)
Ending balance at Mar. 31, 2018	$ 10,936,544	$ 49,871	$ 1,249,560	$ 2,045	$ 11,283,489	$ (2,177,269)	$ (103,974)	$ 10,253,851	$ 680,400	$ 2,293	$ 682,693
Ending balance (shares) at Mar. 31, 2018				205,874,914

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Condensed Consolidated Statement of Capital $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($) shares
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance (units) | shares	205,470,300
Conversion of limited partner common units to general partner common units	$ 15,201
Units issued in connection with employee stock purchase plan	2,509
Amortization of share-based compensation	7,515
Net income	110,095
Other comprehensive loss—foreign currency translation adjustments	(3,743)
Other comprehensive income—fair value of interest rate swaps and foreign currency hedges	8,616
Other comprehensive loss—reclassification of accumulated other comprehensive income to interest expense	$ (235)
Ending balance (units) | shares	205,874,914
Digital Realty Trust, L.P.
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance	$ 11,049,450
Issuance of common units, net of offering costs	(12)
Units issued in connection with employee stock purchase plan	2,509
Shares repurchased and retired to satisfy tax withholding upon vesting	(4,718)
Amortization of share-based compensation	7,515
Adjustment to redeemable partnership units	4,031
Distributions	(237,026)
Distributions to noncontrolling interests in consolidated joint ventures, net of contributions	62
Net income	110,095
Other comprehensive loss—foreign currency translation adjustments	(3,743)
Other comprehensive income—fair value of interest rate swaps and foreign currency hedges	8,616
Other comprehensive loss—reclassification of accumulated other comprehensive income to interest expense	(235)
Ending Balance	10,936,544
Redeemable Limited Partner Common Units | Digital Realty Trust, L.P.
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance	53,902
Adjustment to redeemable partnership units	(4,031)
Ending Balance	49,871
Accumulated Other Comprehensive Loss | Digital Realty Trust, L.P.
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance	(112,885)
Other comprehensive loss—foreign currency translation adjustments	(3,743)
Other comprehensive income—fair value of interest rate swaps and foreign currency hedges	8,616
Other comprehensive loss—reclassification of accumulated other comprehensive income to interest expense	(235)
Ending Balance	(108,247)
Noncontrolling Interests in Consolidated Joint Ventures | Digital Realty Trust, L.P.
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance	2,243
Distributions to noncontrolling interests in consolidated joint ventures, net of contributions	62
Net income	(12)
Ending Balance	2,293
General Partner | Preferred Units | Digital Realty Trust, L.P.
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance	$ 1,249,560
Beginning balance (units) | shares	50,650,000
Distributions	$ (20,329)
Net income	20,329
Ending Balance	$ 1,249,560
Ending balance (units) | shares	50,650,000
General Partner | Common Units | Digital Realty Trust, L.P.
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance	$ 9,207,953
Beginning balance (units) | shares	205,470,300
Conversion of limited partner common units to general partner common units	$ 15,201
Conversion of limited partner common units to general partner common units (units) | shares	168,367
Issuance of unvested restricted common units (units) | shares	251,187
Issuance of common units, net of offering costs	$ (12)
Common unit offering costs, net (units) | shares	0
Units issued in connection with employee stock purchase plan	$ 2,509
Units issued in connection with employee stock purchase plan (units) | shares	31,893
Shares repurchased and retired to satisfy tax withholding upon vesting	$ (4,718)
Units repurchased and retired to satisfy tax withholding upon vesting (units) | shares	(46,833)
Amortization of share-based compensation	$ 7,515
Reclassification of vested share-based awards	(2,497)
Adjustment to redeemable partnership units	4,031
Distributions	(208,015)
Net income	86,298
Ending Balance	$ 9,108,265
Ending balance (units) | shares	205,874,914
Limited Partners | Common Units | Digital Realty Trust, L.P.
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance	$ 702,579
Beginning balance (units) | shares	8,489,095
Conversion of limited partner common units to general partner common units	$ (15,201)
Conversion of limited partner common units to general partner common units (units) | shares	(168,367)
Issuance of common units, net of forfeitures (units) | shares	415,760
Reclassification of vested share-based awards	$ 2,497
Distributions	(8,682)
Net income	3,480
Ending Balance	$ 684,673
Ending balance (units) | shares	8,736,488

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income	$ 110,095	$ 84,563
Adjustments to reconcile net income to net cash provided by operating activities:
(Gain) loss on sale of properties	(39,273)	522
Equity in earnings of unconsolidated joint ventures	(7,410)	(5,324)
Distributions from unconsolidated joint ventures	5,270	4,448
Write-off of net assets due to early lease terminations	431	0
Depreciation and amortization of buildings and improvements, tenant improvements and acquired ground leases	186,431	131,807
Amortization of acquired in-place lease value and deferred leasing costs	108,358	44,659
Amortization of share-based compensation	5,872	4,064
Non-cash amortization of terminated swaps	301	301
Recovery of doubtful accounts	(494)	(1,310)
Amortization of deferred financing costs	3,060	2,443
Amortization of debt discount/premium	851	674
Amortization of acquired above-market leases and acquired below-market leases, net	6,660	(2,026)
Changes in assets and liabilities:
Accounts and other receivables	(30,250)	9,455
Deferred rent	(10,454)	(4,033)
Deferred leasing costs	(4,613)	(1,898)
Other assets	(1,750)	(13,040)
Accounts payable and other accrued liabilities	(83,206)	(38,421)
Security deposits and prepaid rents	(12,889)	2,182
Net cash provided by operating activities	236,990	219,066
Cash flows from investing activities:
Acquisitions of real estate	0	(13,585)
Proceeds from sale of properties, net of sales costs	137,175	0
Excess proceeds from forward contracts	0	51,308
Investments in unconsolidated joint ventures	(81)	(5,749)
Prepaid construction costs and other investments	(26,602)	0
Improvements to investments in real estate	(289,840)	(254,359)
Improvement advances to tenants	(11,627)	(5,073)
Collection of improvement advances to tenants	13,691	11,890
Net cash used in investing activities	(177,284)	(215,568)
Cash flows from financing activities:
Borrowings on global revolving credit facility	579,685	715,524
Repayments on global revolving credit facility	(183,467)	(358,219)
Repayments on unsecured notes	0	(50,000)
Principal payments on mortgage loans	(192)	(132)
Payment of loan fees and costs	(294)	(144)
Capital distributions paid to noncontrolling interests in consolidated joint ventures, net	62	(146)
Taxes paid related to net settlement of stock-based compensation awards	(4,718)	0
Proceeds from common and preferred stock offerings, net	(12)	118
Proceeds from equity plans	2,509	2,606
Payment of dividends/distributions to preferred stockholders/unitholders	(20,329)	(17,393)
Payment of dividends/distributions to common stockholders/unitholders and distributions to noncontrolling interests in operating partnership	(416,458)	(295,105)
Net cash used in financing activities	(43,214)	(2,891)
Net increase in cash, cash equivalents and restricted cash	16,492	607
Effect of exchange rate changes on cash, cash equivalents and restricted cash	27	2,754
Cash, cash equivalents and restricted cash at beginning of period	13,181	22,036
Cash, cash equivalents and restricted cash at end of period	29,700	25,397
Supplemental disclosure of cash flow information:
Cash paid for interest, net of amounts capitalized	78,728	53,819
Cash paid for income taxes	4,272	3,569
Supplementary disclosure of noncash investing and financing activities:
Change in net assets related to foreign currency translation adjustments	(3,743)	16,578
Increase (decrease) in accounts payable and other accrued liabilities related to change in fair value of interest rate swaps and foreign currency hedges	8,616	(4,364)
Acquisition measurement period adjustment to goodwill and accounts payable and other accrued liabilities	0	2,162
Noncontrolling interests in operating partnership converted to shares of common stock	15,201	2,744
Accrual for additions to investments in real estate and tenant improvement advances included in accounts payable and accrued expenses	177,812	138,162
Addition to leasehold improvements pursuant to capital lease obligation	73,873	0
Digital Realty Trust, L.P.
Cash flows from operating activities:
Net income	110,095	84,563
Adjustments to reconcile net income to net cash provided by operating activities:
(Gain) loss on sale of properties	(39,273)	522
Equity in earnings of unconsolidated joint ventures	(7,410)	(5,324)
Distributions from unconsolidated joint ventures	5,270	4,448
Write-off of net assets due to early lease terminations	431	0
Depreciation and amortization of buildings and improvements, tenant improvements and acquired ground leases	186,431	131,807
Amortization of acquired in-place lease value and deferred leasing costs	108,358	44,659
Amortization of share-based compensation	5,872	4,064
Non-cash amortization of terminated swaps	301	301
Recovery of doubtful accounts	(494)	(1,310)
Amortization of deferred financing costs	3,060	2,443
Amortization of debt discount/premium	851	674
Amortization of acquired above-market leases and acquired below-market leases, net	6,660	(2,026)
Changes in assets and liabilities:
Accounts and other receivables	(30,250)	9,455
Deferred rent	(10,454)	(4,033)
Deferred leasing costs	(4,613)	(1,898)
Other assets	(1,750)	(13,040)
Accounts payable and other accrued liabilities	(83,206)	(38,421)
Security deposits and prepaid rents	(12,889)	2,182
Net cash provided by operating activities	236,990	219,066
Cash flows from investing activities:
Acquisitions of real estate	0	(13,585)
Proceeds from sale of properties, net of sales costs	137,175	0
Excess proceeds from forward contracts	0	51,308
Investments in unconsolidated joint ventures	(81)	(5,749)
Prepaid construction costs and other investments	(26,602)	0
Improvements to investments in real estate	(289,840)	(254,359)
Improvement advances to tenants	(11,627)	(5,073)
Collection of improvement advances to tenants	13,691	11,890
Net cash used in investing activities	(177,284)	(215,568)
Cash flows from financing activities:
Borrowings on global revolving credit facility	579,685	715,524
Repayments on global revolving credit facility	(183,467)	(358,219)
Repayments on unsecured notes	0	(50,000)
Borrowings on mortgage loans	(192)	(132)
Payment of loan fees and costs	(294)	(144)
Capital distributions paid to noncontrolling interests in consolidated joint ventures, net	62	(146)
Taxes paid related to net settlement of stock-based compensation awards	(4,718)	0
General partner contributions, net	2,497	2,724
Payment of dividends/distributions to preferred stockholders/unitholders	(20,329)	(17,393)
Payment of dividends/distributions to common stockholders/unitholders and distributions to noncontrolling interests in operating partnership	(416,458)	(295,105)
Net cash used in financing activities	(43,214)	(2,891)
Net increase in cash, cash equivalents and restricted cash	16,492	607
Effect of exchange rate changes on cash, cash equivalents and restricted cash	27	2,754
Cash, cash equivalents and restricted cash at beginning of period	13,181	22,036
Cash, cash equivalents and restricted cash at end of period	29,700	25,397
Supplemental disclosure of cash flow information:
Cash paid for interest, net of amounts capitalized	78,728	53,819
Cash paid for income taxes	4,272	3,569
Supplementary disclosure of noncash investing and financing activities:
Change in net assets related to foreign currency translation adjustments	(3,743)	16,578
Increase (decrease) in accounts payable and other accrued liabilities related to change in fair value of interest rate swaps and foreign currency hedges	8,616	(4,364)
Acquisition measurement period adjustment to goodwill and accounts payable and other accrued liabilities	0	2,162
Accrual for additions to investments in real estate and tenant improvement advances included in accounts payable and accrued expenses	177,812	138,162
Addition to leasehold improvements pursuant to capital lease obligation	73,873	$ 0
Parent
Cash flows from operating activities:
Net income	$ 106,627

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Organization and Description of Business

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Description Of Business

Organization and Description of Business

Digital Realty Trust, Inc. through its controlling interest in Digital Realty Trust, L.P. (the Operating Partnership) and the subsidiaries of the Operating Partnership (collectively, we, our, us or the Company) is a leading global provider of data center, colocation and interconnection solutions for customers across a variety of industry verticals ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare, and consumer products. The Operating Partnership, a Maryland limited partnership, is the entity through which Digital Realty Trust, Inc., a Maryland corporation, conducts its business of owning, acquiring, developing and operating data centers.  Digital Realty Trust, Inc. operates as a REIT for federal income tax purposes. A summary of our data center portfolio as of March 31, 2018 and December 31, 2017 is as follows:

	Data Centers
	As of March 31, 2018				As of December 31, 2017
Region	Operating	Held for Sale	Unconsolidated Joint Ventures	Total	Operating	Held for Sale	Unconsolidated Joint Ventures	Total
United States	133	4	14	151	131	7	14	152
Europe	37	—	—	37	38	—	—	38
Asia	3	—	4	7	3	—	4	7
Australia	5	—	—	5	5	—	—	5
Canada	3	—	—	3	3	—	—	3
Total	181	4	18	203	180	7	18	205

We are diversified in major metropolitan areas where data center and technology customers are concentrated, including the Atlanta, Boston, Chicago, Dallas, Los Angeles, New York, Northern Virginia, Phoenix, San Francisco, Seattle, Silicon Valley and Toronto metropolitan areas in North America, the Amsterdam, Dublin, Frankfurt, London and Paris metropolitan areas in Europe and the Hong Kong, Melbourne, Osaka, Singapore, Sydney, and Tokyo metropolitan areas in the Asia Pacific region. The portfolio consists of data centers, Internet gateway facilities and office and other non-data center space.

The Operating Partnership was formed on July 21, 2004 in anticipation of Digital Realty Trust, Inc.’s initial public offering (IPO) on November 3, 2004 and commenced operations on that date. As of March 31, 2018, Digital Realty Trust, Inc. owns a 95.9% common interest and a 100.0% preferred interest in the Operating Partnership. As of December 31, 2017, Digital Realty Trust, Inc. owned a 96.0% common interest and a 100.0% preferred interest in the Operating Partnership. As sole general partner of the Operating Partnership, Digital Realty Trust, Inc. has the full, exclusive and complete responsibility for the Operating Partnership’s day-to-day management and control. The limited partners of the Operating Partnership do not have rights to replace Digital Realty Trust, Inc. as the general partner nor do they have participating rights, although they do have certain protective rights.

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

(a) Principles of Consolidation and Basis of Presentation

The accompanying interim condensed consolidated financial statements include all of the accounts of Digital Realty Trust, Inc., the Operating Partnership and the subsidiaries of the Operating Partnership. Intercompany balances and transactions have been eliminated.

The accompanying interim condensed consolidated financial statements are unaudited, but have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and in compliance with the rules and regulations of the United States Securities and Exchange Commission. Accordingly, they do not include all of the disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments necessary for a fair presentation have been included. All such adjustments are considered to be of a normal recurring nature, except as otherwise indicated. The results of operations for the interim periods are not necessarily indicative of the results to be obtained for the full fiscal year. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our annual report on Form 10-K for the year ended December 31, 2017.

The notes to the condensed consolidated financial statements of Digital Realty Trust, Inc. and the Operating Partnership have been combined to provide the following benefits:

• enhancing investors’ understanding of the Company and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;

• eliminating duplicative disclosure and providing a more streamlined and readable presentation since a substantial portion of the disclosure applies to both the Company and the Operating Partnership; and

• creating time and cost efficiencies through the preparation of one set of notes instead of two separate sets of notes.

There are a few differences between the Company and the Operating Partnership, which are reflected in these condensed consolidated financial statements. We believe it is important to understand the differences between the Company and the Operating Partnership in the context of how we operate as an interrelated consolidated company. Digital Realty Trust, Inc.’s only material asset is its ownership of partnership interests of the Operating Partnership. As a result, Digital Realty Trust, Inc. generally does not conduct business itself, other than acting as the sole general partner of the Operating Partnership, issuing public securities from time to time and guaranteeing certain unsecured debt of the Operating Partnership and certain of its subsidiaries and affiliates. Digital Realty Trust, Inc. itself has not issued any indebtedness but guarantees the unsecured debt of the Operating Partnership and certain of its subsidiaries and affiliates, as disclosed in these notes.

The Operating Partnership holds substantially all the assets of the Company and holds the ownership interests in the Company’s joint ventures. The Operating Partnership conducts the operations of the business and is structured as a partnership with no publicly traded equity. Except for net proceeds from public equity issuances by Digital Realty Trust, Inc., which are generally contributed to the Operating Partnership in exchange for partnership units, the Operating Partnership generally generates the capital required by the Company’s business primarily through the Operating Partnership’s operations, by the Operating Partnership’s or its affiliates' direct or indirect incurrence of indebtedness or through the issuance of partnership units.

The presentation of noncontrolling interests in operating partnership, stockholders’ equity and partners’ capital are the main areas of difference between the condensed consolidated financial statements of Digital Realty Trust, Inc. and those of the Operating Partnership. The common limited partnership interests held by the limited partners in the Operating Partnership are presented as limited partners’ capital within partners’ capital in the Operating Partnership’s condensed consolidated financial statements and as noncontrolling interests in operating partnership within equity in Digital Realty Trust, Inc.’s condensed consolidated financial statements. The common and preferred partnership interests held by Digital Realty Trust, Inc. in the Operating Partnership are presented as general partner’s capital within partners’ capital in the Operating Partnership’s condensed consolidated financial statements and as preferred stock, common stock, additional paid-in capital and accumulated dividends in excess of earnings within stockholders’ equity in Digital Realty Trust, Inc.’s condensed consolidated financial statements. The differences in the presentations between stockholders’ equity and partners’ capital result from the differences in the equity issued at the Digital Realty Trust, Inc. and the Operating Partnership levels.

To help investors understand the significant differences between the Company and the Operating Partnership, these consolidated financial statements present the following separate sections for each of the Company and the Operating Partnership:

• condensed consolidated face financial statements; and

• the following notes to the condensed consolidated financial statements:

• "Debt of the Company" and "Debt of the Operating Partnership";

• "Income per Share" and "Income per Unit"; and

• "Equity and Accumulated Other Comprehensive Loss, Net of the Company" and "Capital and Accumulated Other Comprehensive Loss of the Operating Partnership".

In the sections that combine disclosure of Digital Realty Trust, Inc. and the Operating Partnership, these notes refer to actions or holdings as being actions or holdings of the Company. Although the Operating Partnership is generally the entity that enters into contracts and joint ventures and holds assets and debt, reference to the Company is appropriate because the business is one enterprise and the Company generally operates the business through the Operating Partnership.

(b) Cash Equivalents

For the purpose of the condensed consolidated statements of cash flows, we consider short-term investments with original maturities of 90 days or less to be cash equivalents. As of March 31, 2018, cash equivalents consist of investments in money market instruments.

(c) Investments in Unconsolidated Joint Ventures

The Company’s investments in unconsolidated joint ventures are accounted for using the equity method, whereby our investment is increased for capital contributed and our share of the joint venture's net income and decreased by distributions we receive and our share of any losses of the joint ventures. We do not record losses of the joint ventures in excess of our investment balances unless we are liable for the obligations of the joint venture or are otherwise committed to provide financial support to the joint venture. Likewise, and as long as we have no explicit or implicit obligations to the joint venture, we will suspend equity method accounting to the extent that cash distributions exceed our investment balances until those unrecorded earnings exceed the excess distributions previously recognized in income. In this case, we will apply cost accounting concepts which tie income recognition to the receipt of cash.  Cost basis accounting concepts will apply until earnings exceed the excess distributions previously recognized in income.

We amortize the difference between the cost of our investments in the joint ventures and the book value of the underlying equity into income on a straight-line basis consistent with the lives of the underlying assets. The amortization of this difference was immaterial for the three months ended March 31, 2018 and 2017, respectively.

(d) Capitalization of Costs

Direct and indirect project costs that are clearly associated with the development of properties are capitalized as incurred. Project costs include all costs directly associated with the development of a property, including construction costs, interest, property taxes, insurance, legal fees and costs of personnel working on the project. Indirect costs that do not clearly relate to the projects under development are not capitalized and are charged to expense as incurred.

Capitalization of costs begins when the activities necessary to get the development project ready for its intended use begins, which include costs incurred before the beginning of construction. Capitalization of costs ceases when the development project is substantially complete and ready for its intended use. Determining when a development project commences and when it is substantially complete and ready for its intended use involves a degree of judgment. We generally consider a development project to be substantially complete and ready for its intended use upon receipt of a certificate of occupancy. If and when development of a property is suspended pursuant to a formal change in the planned use of the property, we will evaluate whether the accumulated costs exceed the estimated value of the project and write off the amount of any such excess accumulated costs. For a development project that is suspended for reasons other than a formal change in the planned use of such property, the accumulated project costs are evaluated for impairment consistent with our impairment policies for long-lived assets. Capitalized costs are allocated to the specific components of a project that are benefited.

During the three months ended March 31, 2018 and 2017, we capitalized interest of approximately $7.4 million and $4.6 million, respectively. We capitalized amounts relating to compensation and other overhead expense of employees direct and incremental to construction and successful leasing activities of approximately $18.3 million and $18.7 million during the three months ended March 31, 2018 and 2017, respectively. In addition to capitalized cash compensation, approximately $2.3 million and $3.2 million of capitalized costs primarily related to external leasing commissions are included in improvements to and advances for investments in real estate in cash flows from investing activities in the condensed consolidated statements of cash flows for the three months ended March 31, 2018 and 2017, respectively.

(e) Goodwill

Goodwill represents the excess of the purchase price over the fair value of net tangible and intangible assets acquired and tangible and intangible liabilities assumed in a business combination. Goodwill is not amortized.  We perform an annual impairment test for goodwill and between annual tests, we evaluate goodwill for impairment whenever events or changes in circumstances occur that would more likely than not reduce the fair value of a reporting unit below its carrying value.  In our impairment tests of goodwill, we first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If based on this assessment, we determine that the fair value of the reporting unit is not less than its carrying value, then performing the additional two-step impairment test is unnecessary. If our qualitative

assessment indicates that goodwill impairment is more likely than not, we perform a two-step impairment test. We test goodwill for impairment under the two-step impairment test by first comparing the book value of net assets including goodwill to the fair value of the reporting unit. If the fair value is determined to be less than the book value of the net assets, including goodwill, a second step is performed to compute the amount of impairment as the difference between the implied fair value of goodwill and its carrying value. We estimate the fair value of the reporting units using discounted cash flows. If the carrying value of goodwill exceeds its implied fair value, an impairment charge is recognized. We have not recognized any goodwill impairments since our inception. Since some of the goodwill is denominated in foreign currencies, changes to the goodwill balance occur over time due to changes in foreign exchange rates.

The following is a summary of goodwill activity for the three months ended March 31, 2018 (in thousands):

	Balance as of December 31, 2017		Impact of Change in Foreign Exchange Rates		Balance as of March 31, 2018
Merger / Portfolio Acquisition
Telx Acquisition	$	330,845	$	—	$	330,845
European Portfolio Acquisition	466,604		15,515		482,119
DuPont Fabros Technology Merger	2,592,146		—		2,592,146
Total	$	3,389,595	$	15,515	$	3,405,110

(f) Share-Based Compensation

The Company measures all share-based compensation awards at fair value on the date they are granted to employees and directors, and recognizes compensation cost, net of forfeitures, over the requisite service period for awards with only a service condition. The estimated fair value of the long-term incentive units and Class D units (discussed in Note 13) granted by us is being amortized on a straight-line basis over the expected service period.

The fair value of share-based compensation awards that contain a market condition is measured using a Monte Carlo simulation method and not adjusted based on actual achievement of the market condition.

(g) Assets and Liabilities Measured at Fair Value

Fair value under U.S. GAAP is a market-based measurement, not an entity-specific measurement. Therefore, our fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair-value measurements, we use a fair-value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).

Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or


liability which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair-value measurement is based on inputs from different levels of the fair-value hierarchy, the lowest level input that is significant would be used to determine the fair-value measurement in its entirety. Our assessment of the significance of a particular input to the fair-value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

(h) Derivative Instruments

Derivative financial instruments are employed to manage risks, including foreign currency and interest rate exposures and are not used for trading or speculative purposes. As part of the Company’s risk management program, a variety of financial instruments, such as interest rate swaps and foreign exchange contracts, may be used to mitigate interest rate exposure and foreign currency exposure. The Company recognizes all derivative instruments in the balance sheet at fair value.

Changes in the fair value of derivatives are recognized periodically either in earnings or in stockholders’ equity as a component of accumulated other comprehensive income (loss), depending on whether the derivative financial instrument is undesignated or qualifies for hedge accounting, and if so, whether it represents a fair value, cash flow, or net investment hedge. Gains and losses on derivatives designated as cash flow hedges, to the extent they are included in the assessment of effectiveness, are recorded in other comprehensive income (loss) and subsequently reclassified to earnings to offset the impact of the hedged items when they occur. In the event it becomes probable the forecasted transaction to which a cash flow hedge relates will not occur, the derivative would be terminated and the amount in other comprehensive income (loss) would be recognized in earnings. Changes in the fair value of derivatives that are designated and qualify as a hedge of the net investment in foreign operations, to the extent they are included in the assessment of effectiveness, are reported in other comprehensive income (loss) and are deferred until disposal of the underlying assets. Gains and losses representing components excluded from the assessment of effectiveness for cash flow and fair value hedges are recognized in earnings on a straight-line basis in the same caption as the hedged item over the term of the hedge. Gains and losses representing components excluded from the assessment of effectiveness for net investment hedges are recognized in earnings on a straight-line basis over the term of the hedge.

The net interest paid or received on interest rate swaps is recognized as interest expense. Gains and losses resulting from the early termination of interest rate swap agreements are deferred and amortized as adjustments to interest expense over the remaining period of the debt originally covered by the terminated swap.

See Note 14 for further discussion on derivative instruments.

(i) Income Taxes

Digital Realty Trust, Inc. has elected to be treated as a real estate investment trust (a “REIT”) for federal income tax purposes. As a REIT, Digital Realty Trust, Inc. generally is not required to pay federal corporate income tax to the extent taxable income is currently distributed to its stockholders. If Digital Realty Trust, Inc. fails to qualify as a REIT in any taxable year, it will be subject to federal income tax (including any applicable alternative minimum tax for taxable years prior to 2018) on its taxable income.

The Company is subject to foreign, state and local income taxes in the jurisdictions in which it conducts business. The Company’s taxable REIT subsidiaries are subject to federal, state and foreign income taxes to the extent there is taxable income. Accordingly, the Company recognizes current and deferred income taxes for its taxable REIT subsidiaries, including federal, state and non-U.S. jurisdictions, as appropriate.

We assess our significant tax positions in accordance with U.S. GAAP for all open tax years and determine whether we have any material unrecognized liabilities from uncertain tax benefits. If a tax position is not considered “more-likely-than-not” to be sustained solely on its technical merits, no benefits of the tax position are to be recognized (for financial statement purposes). As of March 31, 2018 and December 31, 2017, we had no assets or liabilities for uncertain tax positions. We classify interest and penalties from significant uncertain tax positions as interest expense and operating expense, respectively, in our condensed consolidated income statements. For the three months ended March 31, 2018 and 2017, we had no such interest or penalties. The tax year 2014 and thereafter remain open to examination by the major taxing jurisdictions with which the Company files tax returns.

See Note 10 for further discussion on income taxes.

(j) Presentation of Transactional-based Taxes

We account for transactional-based taxes, such as value added tax, or VAT, for our international properties on a net basis.

(k) Redeemable Noncontrolling Interests

Redeemable noncontrolling interests include amounts related to partnership units issued by consolidated subsidiaries of the Company in which redemption for equity is outside the control of the Company.  Partnership units which are determined to be contingently redeemable for cash under the Financial Accounting Standards Board’s "Distinguishing Liabilities from Equity" guidance are classified as redeemable noncontrolling interests and presented in the mezzanine section between total liabilities and stockholder’s equity on the Company’s condensed consolidated balance sheets. The amounts of consolidated net income attributable to the Company and to the noncontrolling interests are presented on the Company’s condensed consolidated income statements.

(l) Revenue Recognition

The majority of our revenue is derived from lease arrangements, which we account for in accordance with “Leases (Topic 840)”. We account for the non-lease components within our lease arrangements, as well as other sources of revenue, in accordance with “Revenue from Contracts with Customers (Topic 606)”. Revenue recognized as a result of applying Topic 840 was 97% and Topic 606 was 3% of total operating revenue for the quarter ended March 31, 2018.

Our leases are classified as operating leases and minimum rents are recognized on a straight-line basis over the terms of the leases, which may span multiple years. The excess of rents recognized over amounts contractually due pursuant to the underlying leases is included in deferred rent in the accompanying condensed consolidated balance sheets and contractually due but unpaid rents are included in accounts and other receivables.

Tenant reimbursements for real estate taxes, common area maintenance, and other recoverable costs under our leases are recognized in the period that the expenses are incurred. Lease termination fees are recognized over the remaining term of the lease, effective as of the date the lease modification is finalized, assuming collection is not considered doubtful. As discussed above, we recognize amortization of the value of acquired above or below-market tenant leases as a reduction of rental revenue in the case of above-market leases or an increase to rental revenue in the case of below-market leases.

Interconnection services are included in rental and other services on the condensed consolidated income statements and are generally provided on a month-to-month, one-year or multi-year term. Interconnection services include port and cross-connect services. Port services are typically sold on a one-year or multi-year term and revenue is recognized on a recurring monthly basis (straight-line). The Company bills customers on a monthly basis and recognizes the revenue over the period the service is provided. Revenue for cross-connect installations is generally recognized in the period the cross-connect is installed. Interconnection services that are not specific to a particular space are accounted for under Topic 606 and have terms that are generally one year or less.

Occasionally, customers engage the Company for certain services. The nature of these services historically involves property management and construction management. The proper revenue recognition of these services can be different, depending on whether the arrangements are service revenue or contractor type revenue.

Service revenues are typically recognized on an equal monthly basis based on the minimum fee to be earned. The monthly amounts could be adjusted depending on if certain performance milestones are met.

Fee income arises primarily from contractual management agreements with entities in which we have a noncontrolling interest. The management fees are recognized as earned under the respective agreements. Management and other fee income related to partially owned noncontrolled entities are recognized to the extent attributable to the unaffiliated interest.

We make subjective estimates as to when our revenue is earned and the collectability of our accounts receivable related to minimum rent, deferred rent, expense reimbursements, lease termination fees and other income. We specifically analyze accounts receivable and historical bad debts, customer concentrations, customer creditworthiness and current economic trends when evaluating the adequacy of the allowance for bad debts. These estimates have a direct impact on our net revenue because a higher bad debt allowance would result in lower net revenue, and recognizing rental revenue as earned in one period versus another would result in higher or lower net revenue for a particular period.

(m) Transaction and Integration Expense

Transaction and integration expense includes business combination expenses, other business development expenses and other expenses to integrate newly acquired investments, which are expensed as incurred. Transaction expenses include closing costs, broker commissions and other professional fees, including legal and accounting fees related to business combinations or acquisitions that were not consummated. Integration costs include transition costs associated with organizational restructuring (such as severance and retention payments and recruiting expenses), third-party consulting expenses directly related to the integration of acquired companies (in areas such as cost savings and synergy realization, technology and systems work), and internal costs such as training, travel and labor, reflecting time spent by Company personnel on integration activities and projects. Recurring costs are recorded in general and administrative expense. 

(n) Gains on Sale of Properties

As of January 1, 2018, we began accounting for the sale of real estate properties under Financial Accounting Standards Board, or FASB, Accounting Standards Update, or ASU, No. 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20), which provides for revenue recognition based on transfer of ownership. All properties were non-financial real estate assets and thus not businesses which were sold to noncustomers with no performance obligations subsequent to transfer of ownership. During the three months ended March 31, 2018, the Company sold real estate properties for gross proceeds of $139.3 million, and a recorded net gain of $39.4 million.

(o) Management’s Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates made. On an on-going basis, we evaluate our estimates, including those related to the valuation of our real estate properties, tenant relationship value, goodwill, contingent consideration, accounts receivable and deferred rent receivable, performance-based equity compensation plans and the completeness of accrued liabilities. We base our estimates on historical experience, current market conditions, and various other assumptions that are believed to be reasonable under the circumstances. Actual results may vary from those estimates and those estimates could vary under different assumptions or conditions.

(p) Segment and Geographic Information

All of our properties generate similar revenues and expenses related to tenant rent and services and reimbursements and operating expenses. The sale and delivery of our products is consistent across all properties and although services are provided to a wide range of customers, the types of real estate services provided to them are standardized throughout the portfolio. As such, the properties in our portfolio have similar economic characteristics and the nature of the products and services provided to our customers and the method to distribute such services are consistent throughout the portfolio. In addition, the chief operating decision makers evaluate operating performance and make resource allocation decisions for the portfolio as a whole, rather than by property type or revenue stream. Consequently, our properties qualify for aggregation into one reporting segment.

Operating revenues from properties in the United States were $603.5 million and $429.1 million and outside the United States were $140.9 million and $121.4 million for the three months ended March 31, 2018 and 2017, respectively. We had investments in real estate located in the United States of $10.6 billion and $10.5 billion, and outside the United States of $3.3 billion and $3.1 billion, as of March 31, 2018 and December 31, 2017, respectively.

Operating revenues from properties located in the United Kingdom were $75.2 million and $65.2 million, or 10.1% and 11.8% of total operating revenues, for the three months ended March 31, 2018 and 2017, respectively. No other foreign country comprised more than 10% of total operating revenues for each of these periods. We had investments in real estate located in the United Kingdom of $1.8 billion and $1.7 billion, or 12.8% and 12.1% of total long-lived assets, as of March 31, 2018 and December 31, 2017, respectively. No other foreign country comprised more than 10% of total long-lived assets as of March 31, 2018 and December 31, 2017.

(q) New Accounting Pronouncements

New Accounting Standards Adopted

In August 2017, the FASB issued ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities". The new standard amends the hedge accounting recognition and presentation requirements in Accounting Standards Codification, or ASC, 815. As permitted by ASU 2017-12, the Company early adopted this standard in the first quarter of 2018 on a prospective basis. Refer to Note 2(h), Derivative Instruments, for our policy related to the adoption of this standard.

In January 2016, the FASB issued ASU No. 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities". The guidance requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and to record changes in instruments specific credit risk for financial liabilities measured under the fair value option in other comprehensive income. The principal effect of ASU 2016-01 on our condensed consolidated financial statements is that, prior to adoption of ASU 2016-01, changes in the fair values of investments in equity securities with readily determinable fair values or redemption values were recognized in other comprehensive income until realized, while under ASU 2016-01 all changes in the fair values of these equity securities are recognized in current earnings. The update is effective for fiscal years beginning after December 15, 2017, and for interim periods therein. We adopted this standard in the first quarter of 2018 and the adoption did not have a material impact on our condensed consolidated financial statements. 

In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)", and since that date has issued several additional ASUs intended to clarify certain aspects of ASU 2014-09 and to provide for certain practical expedients entities may elect upon adoption. Collectively, these ASUs outline a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers. We adopted Topic 606 in the first quarter of 2018 using the modified retrospective transition method and applied Topic 606 to those contracts that were not completed as of January 1, 2018. The results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be presented under Topic 605. Our financial statements did not recognize a material effect from the cumulative impact of adopting Topic 606 as the new accounting standard does not impact lessor accounting. Refer to Note 2(l), Revenue Recognition, for the updated policy related to the adoption of this standard.

New Accounting Standards Issued but not yet Adopted

In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)", which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Accounting for leases with a term of 12 months or less will be similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases.

ASU 2016-02 is expected to impact the Company’s consolidated financial statements for leases where the Company is a lessee, primarily for the Company’s data center operating leases, ground leases and administrative office leases, and the Company will be required to record a lease liability and a right of use asset on its condensed consolidated balance sheet at fair value upon adoption. ASU 2016-02 also limits the capitalization of leasing costs to initial direct costs, which will likely result in a reduction to our capitalized leasing costs and an increase in expenses, though the amount of such change is highly dependent upon the leasing compensation structures in place at the time of adoption.

ASU 2016-02 supersedes the previous leases standard, Leases (Topic 840). The standard is effective on January 1, 2019, with early adoption permitted. The new leasing standard requires modified retrospective transition. In March 2018, the FASB affirmed a proposed ASU that would allow entities to elect a simplified transition approach which would require applying the provisions of the new guidance at the effective date as opposed to the earliest period presented under the modified retrospective approach.

A set of practical expedients for implementation, which must be elected as a package and for all leases, may also be elected. These practical expedients include relief from re-assessing lease classification at the adoption date for expired or existing leases, although a right-of-use asset and lease liability would still be recorded for such leases. In March 2018, the FASB affirmed a proposed ASU that would include creating a practical expedient that would provide lessors an option not to separate lease and non-lease components when certain criteria are met and instead account for those components as a single component.

We will be subject to the requirements of Topic 842 as both a lessor and a lessee. We are currently assessing the method of adoption and the impact that ASU 2016-02, and any subsequent amendments, will have on our consolidated financial statements.

In January 2017, the FASB issued guidance codified in ASU Topic 2017-04, "Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". ASU 2017-04 simplifies the accounting for goodwill impairment by eliminating the process of measuring the implied value of goodwill, known as step two, from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The standard will be effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. We do not expect the provisions of ASC 2017-04 to have a material impact on our consolidated financial statements.

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Investments in Real Estate

3 Months Ended

Mar. 31, 2018

Real Estate [Abstract]

Investments In Real Estate

Investments in Real Estate

Acquisitions

We had no acquisitions during the three months ended March 31, 2018.

Held for Sale

As of March 31, 2018, we have identified four properties that met the criteria to be classified as held for sale. As of March 31, 2018, the four properties had an aggregate carrying value of $41.7 million within total assets and $1.8 million within total liabilities and are shown as assets held for sale and obligations associated with assets held for sale on the condensed consolidated balance sheet, respectively. As of December 31, 2017, we had identified eight properties that met the criteria to be classified as held for sale. As of December 31, 2017, the eight properties had an aggregate carrying value of $139.5 million within total assets and $5.0 million within total liabilities and are shown as assets held for sale and obligations associated with assets held for sale on the consolidated balance sheet, respectively. The properties are not representative of a significant component of our portfolio, nor do the potential sales represent a significant shift in our strategy.

Dispositions

We sold the following real estate properties during the three months ended March 31, 2018:

Location	Metro Area	Date Sold	Gross Proceeds (in millions)		Gain (loss) on sale (in millions)
200 Quannapowitt Parkway	Boston	January 25, 2018	$	15.0	$	(0.4	)
34551 Ardenwood Boulevard	Silicon Valley	February 9, 2018	73.3		25.3
3065 Gold Camp Drive	Sacramento	March 14, 2018	14.2		5.4
11085 Sun Center Drive	Sacramento	March 14, 2018	36.8		9.1
			$	139.3	$	39.4

On April 19, 2018, the Company closed on the sale of a three-property portfolio in Austin, Texas for approximately $48.0 million. The Company expects to recognize a gain on the sale of approximately $12 million in the second quarter of 2018. The properties were classified as held for sale as of March 31, 2018.

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Investments in Unconsolidated Joint Ventures

3 Months Ended

Mar. 31, 2018

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Joint Ventures

Investments in Unconsolidated Joint Ventures

As of March 31, 2018, our investments in unconsolidated joint ventures consist of effective 50% interests in four joint ventures that own data center buildings in Seattle, Hong Kong, Tokyo and Osaka, 20% interests in two joint ventures, one of which owns 10 data center properties with an investment fund managed by Prudential Real Estate Investors (PREI^®) and the other which owns one data center property with an affiliate of Griffin Capital Essential Asset REIT, Inc. (GCEAR), and a 17% interest in a joint venture that owns a data center property in Silicon Valley. The Osaka/Tokyo joint venture was formed on November 1, 2017.

The following tables present summarized financial information for our joint ventures as of March 31, 2018 and December 31, 2017 and for the three months ended March 31, 2018 and 2017 (unaudited, in thousands):

	As of March 31, 2018										Three Months Ended March 31, 2018
2018	Net Investment in Properties		Total Assets		Debt		Total Liabilities		Equity		Revenues		Property Operating Expense			Net Operating Income		Net Income
Total Unconsolidated Joint Ventures	$	1,053,058	$	1,361,412	$	726,234	$	846,918	$	514,494	$	51,731	$	(18,419	)	$	33,312	$	15,334
Our investment in and share of equity in earnings of unconsolidated joint ventures									$	167,564								$	7,410
	As of December 31, 2017										Three Months Ended March 31, 2017
2017	Net Investment in Properties		Total Assets		Debt		Total Liabilities		Equity		Revenues		Property Operating Expense			Net Operating Income		Net Income
Total Unconsolidated Joint Ventures	$	1,061,950	$	1,375,006	$	712,690	$	869,879	$	505,127	$	35,062	$	(10,391	)	$	24,671	$	11,286
Our investment in and share of equity in earnings of unconsolidated joint ventures									$	163,477								$	5,324

The amounts reflected in the tables above, except for our investment in and share of equity in earnings of unconsolidated joint ventures, are based on the historical financial information of the individual joint ventures. The debt of our unconsolidated joint ventures generally are non-recourse to us, except for customary exceptions pertaining to such matters as intentional misuse of funds, environmental conditions, and material misrepresentations.

Differences between the Company’s investment in the joint ventures and the amount of the underlying equity in net assets of the joint ventures are due to basis differences resulting from the Company’s equity investment recorded at its historical basis versus the fair value of the Company’s contributed interest in the joint ventures. Our proportionate share of the earnings or losses related to these unconsolidated joint ventures is reflected as equity in earnings of unconsolidated joint ventures on the accompanying condensed consolidated income statements.

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Acquired Intangible Assets and Liabilities

3 Months Ended

Mar. 31, 2018

Acquired Intangible Assets And Liabilities [Abstract]

Acquired Intangible Assets and Liabilities

Acquired Intangible Assets and Liabilities

The following summarizes our acquired intangible assets (real estate intangibles, comprised of acquired in-place lease value and tenant relationship value along with acquired above-market lease value) and intangible liabilities (acquired below-market lease value) as of March 31, 2018 and December 31, 2017.

	Balance as of
(Amounts in thousands)	March 31, 2018			December 31, 2017
Real Estate Intangibles:
Acquired in-place lease value:
Gross amount	$	1,478,934		$	1,473,515
Accumulated amortization	(666,047		)	(613,948		)
Net	$	812,887		$	859,567
Tenant relationship value:
Gross amount	$	1,987,017		$	1,978,277
Accumulated amortization	(201,688		)	(169,919		)
Net	$	1,785,329		$	1,808,358
Acquired above-market leases:
Gross amount	$	285,963		$	294,514
Accumulated amortization	(120,395		)	(110,139		)
Net	$	165,568		$	184,375
Acquired below-market leases:
Gross amount	$	451,440		$	469,119
Accumulated amortization	(225,766		)	(219,654		)
Net	$	225,674		$	249,465

Amortization of acquired below-market leases, net of acquired above-market leases, resulted in a change in rental revenues of $(6.9) million and $2.0 million for the three months ended March 31, 2018 and 2017, respectively. The expected average remaining lives for acquired below-market leases and acquired above-market leases is 8.6 years and 3.5 years, respectively, as of March 31, 2018. Estimated annual amortization of acquired below-market leases, net of acquired above-market leases, for each of the five succeeding years and thereafter, commencing April 1, 2018 is as follows:

(Amounts in thousands)
Remainder of 2018	$	(31,936	)
2019	(15,513		)
2020	(3,145		)
2021	2,108
2022	9,118
Thereafter	99,474
Total	$	60,106

Amortization of acquired in-place lease value (a component of depreciation and amortization expense) was $57.0 million and $14.2 million for the three months ended March 31, 2018 and 2017, respectively. The expected average amortization period for acquired in-place lease value is 6.4 years as of March 31, 2018. The weighted average remaining contractual life for acquired leases excluding renewals or extensions is 6.1 years as of March 31, 2018. Estimated annual amortization of acquired in-place lease value for each of the five succeeding years and thereafter, commencing April 1, 2018 is as follows:

(Amounts in thousands)
Remainder of 2018	$	153,591
2019	148,067
2020	112,195
2021	87,579
2022	65,627
Thereafter	245,828
Total	$	812,887

Amortization of tenant relationship value (a component of depreciation and amortization expense) was approximately $31.0 million and $17.6 million for the three months ended March 31, 2018 and 2017, respectively. As of March 31, 2018, the weighted average remaining contractual life for tenant relationship value was 15.0 years. Estimated annual amortization of tenant relationship value for each of the five succeeding years and thereafter, commencing April 1, 2018 is as follows:

(Amounts in thousands)
Remainder of 2018	$	110,349
2019	142,181
2020	141,799
2021	141,799
2022	141,799
Thereafter	1,107,402
Total	$	1,785,329

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Debt of the Company

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Debt of the Company

Debt of the Company

In this Note 6, the “Company” refers only to Digital Realty Trust, Inc. and not to any of its subsidiaries.

The Company itself does not currently have any indebtedness. All debt is currently held directly or indirectly by the Operating Partnership.

Guarantee of Debt

The Company guarantees the Operating Partnership’s obligations with respect to its 5.875% notes due 2020 (5.875% 2020 Notes), 3.400% notes due 2020 (3.400% 2020 Notes), 5.250% notes due 2021 (2021 Notes), 3.950% notes due 2022 (3.950% 2022 Notes), 3.625% notes due 2022 (3.625% 2022 Notes), 2.750% notes due 2023 (2.750% 2023 Notes), 4.750% notes due 2025 (4.750% 2025 Notes) and 3.700% notes due 2027 (2027 Notes). The Company and the Operating Partnership guarantee the obligations of Digital Stout Holding, LLC, an indirect, wholly owned subsidiary of the Operating Partnership, with respect to its 4.750% notes due 2023 (4.750% 2023 Notes), 2.750% notes due 2024 (2.750% 2024 Notes), 4.250% notes due 2025 (4.250% 2025 Notes) and 3.300% notes due 2029 (2029 Notes) and the obligations of Digital Euro Finco, LLC, a wholly owned subsidiary of the Operating Partnership, with respect to its 2.625% notes due 2024 (2.625% 2024 Notes) and Floating Rate Guaranteed Notes due 2019 (2019 Notes). The Company is also the guarantor of the Operating Partnership’s and its subsidiary borrowers’ obligations under the global revolving credit facility and unsecured term loans.

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Debt of the Operating Partnership

3 Months Ended

Mar. 31, 2018

Digital Realty Trust, L.P.

Debt Instrument [Line Items]

Debt of The Operating Partnership

Debt of the Operating Partnership

A summary of outstanding indebtedness of the Operating Partnership as of March 31, 2018 and December 31, 2017 is as follows (in thousands):

Indebtedness	Interest Rate at March 31, 2018		Maturity Date	Principal Outstanding at March 31, 2018				Principal Outstanding at December 31, 2017
Global revolving credit facility	Various	(1)	Jan 15, 2020	$	958,480		(2)	$	558,191		(2)
Deferred financing costs, net				(6,359		)		(7,245		)
Global revolving credit facility, net				952,121				550,946
Unsecured Term Loans
Unsecured term loan — 5-year	Various	(3)(4)	Jan 15, 2021	1,132,931			(5)	1,125,117			(5)
Unsecured term loan — 7-year	Various	(3)(4)	Jan 15, 2023	300,000			(5)	300,000			(5)
Deferred financing costs, net				(4,433		)		(4,784		)
Unsecured term loan, net				1,428,498				1,420,333
Floating rate notes due 2019	EURIBOR + 0.500%		May 22, 2019	154,050			(6)	150,063			(6)
5.875% notes due 2020	5.875%		Feb 1, 2020	500,000				500,000
3.400% notes due 2020	3.400%		Oct 1, 2020	500,000				500,000
5.250% notes due 2021	5.250%		Mar 15, 2021	400,000				400,000
3.950% notes due 2022	3.950%		Jul 1, 2022	500,000				500,000
3.625% notes due 2022	3.625%		Oct 1, 2022	300,000				300,000
2.750% notes due 2023	2.750%		Feb 1, 2023	350,000				350,000
4.750% notes due 2023	4.750%		Oct 13, 2023	420,450			(7)	405,390			(7)
2.625% notes due 2024	2.625%		Apr 15, 2024	739,440			(6)	720,300			(6)
2.750% notes due 2024	2.750%		Jul 19, 2024	350,375			(7)	337,825			(7)
4.250% notes due 2025	4.250%		Jan 17, 2025	560,600			(7)	540,520			(7)
4.750% notes due 2025	4.750%		Oct 1, 2025	450,000				450,000
3.700% notes due 2027	3.700%		Aug 15, 2027	1,000,000				1,000,000
3.300% notes due 2029	3.300%		Jul 19, 2029	490,525			(7)	472,955			(7)
Unamortized discounts				(17,978		)		(18,508		)
Total senior notes, net of discount				6,697,462				6,608,545
Deferred financing costs, net				(36,735		)		(37,788		)
Total unsecured senior notes, net of discount and deferred financing costs				6,660,727				6,570,757

Indebtedness	Interest Rate at March 31, 2018		Maturity Date	Principal Outstanding March 31, 2018			Principal Outstanding December 31, 2017
Mortgage loans:
731 East Trade Street	8.22%		Jul 1, 2020	$	2,178		$	2,370
Secured note due 2023	LIBOR + 1.100%	(4)	Mar 1, 2023	104,000			104,000
Unamortized net premiums				217			241
Total mortgage loans, including premiums				106,395			106,611
Deferred financing costs, net				(29		)	(29		)
Total mortgage loans, including premiums and net of deferred financing costs				106,366			106,582
Total indebtedness				$	9,147,712		$	8,648,618

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(1) The interest rate for borrowings under the global revolving credit facility equals the applicable index plus a margin of 100 basis points, which is based on the current credit ratings of our long-term debt. An annual facility fee of 20 basis points, which is based on the credit ratings of our long-term debt, is due and payable quarterly on the total commitment amount of the facility. Twosix-month extensions are available, which we may exercise if certain conditions are met.

(2) Balances as of March 31, 2018 and December 31, 2017 are as follows (balances, in thousands):

Denomination of Draw	Balance as of March 31, 2018			Weighted-average interest rate		Balance as of December 31, 2017			Weighted-average interest rate
Floating Rate Borrowing (a)
U.S. dollar ($)	$	745,000		2.78	%	$	400,000		2.48	%
British pound sterling (£)	14,015		(c)	1.51	%	18,918		(d)	1.50	%
Euro (€)	38,204		(c)	0.62	%	31,213		(d)	0.62	%
Australian dollar (AUD)	11,672		(c)	2.77	%	—			—	%
Hong Kong dollar (HKD)	4,829		(c)	1.84	%	4,100		(d)	2.20	%
Japanese yen (JPY)	90,985		(c)	0.92	%	65,890		(d)	0.96	%
Canadian dollar (CAD)	38,775		(c)	2.60	%	23,070		(d)	2.36	%
Total	$	943,480		2.48	%	$	543,191		2.15	%
Base Rate Borrowing (b)
U.S. dollar ($)	$	15,000		4.75	%	$	15,000		4.50	%
Total borrowings	$	958,480		2.52	%	$	558,191		2.21	%

(a) The interest rates for floating rate borrowings under the global revolving credit facility equal the applicable index plus a margin of 100 basis points, which is based on the credit ratings of our long-term debt.

(b) The interest rates for base rate borrowings under the global revolving credit facility equal the U.S. Prime Rate.

(c) Based on exchange rates of $1.40 to £1.00, $1.23 to €1.00, $0.77 to 1.00 AUD, $0.13 to 1.00 HKD, $0.01 to 1.00 JPY and $0.78 to 1.00 CAD, respectively, as of March 31, 2018.

(d) Based on exchange rates of $1.35 to £1.00, $1.20 to €1.00, $0.13 to 1.00 HKD, $0.01 to 1.00 JPY and $0.80 to 1.00 CAD, respectively, as of December 31, 2017.

(3) Interest rates are based on our current senior unsecured debt ratings and are 110 basis points and 155 basis points over the applicable index for floating rate advances for the 5-Year Term Loan and the 7-Year Term Loan, respectively.

(4) We have entered into interest rate swap agreements as a cash flow hedge for interest generated by the U.S. dollar, British pound sterling and Canadian dollar tranches of the unsecured term loans and the secured note due 2023. See Note 14 "Derivative Instruments" for further information.

(5) Balances as of March 31, 2018 and December 31, 2017 are as follows (balances, in thousands):

Denomination of Draw	Balance as of March 31, 2018			Weighted-average interest rate			Balance as of December 31, 2017			Weighted-average interest rate
U.S. dollar ($)	$	606,911		3.08	%	(b)	$	606,911		2.78	%	(d)
British pound sterling (£)	237,519		(a)	1.60	%	(b)	229,011		(c)	1.59	%	(d)
Singapore dollar (SGD)	238,129		(a)	2.21	%		233,788		(c)	2.17	%
Australian dollar (AUD)	176,847		(a)	2.88	%		179,841		(c)	2.79	%
Hong Kong dollar (HKD)	85,001		(a)	1.85	%		85,762		(c)	2.20	%
Canadian dollar (CAD)	76,387		(a)	2.70	%	(b)	78,357		(c)	2.44	%	(d)
Japanese yen (JPY)	12,137		(a)	1.02	%		11,447		(c)	1.05	%
Total	$	1,432,931		2.55	%	(b)	$	1,425,117		2.42	%	(d)

(a) Based on exchange rates of $1.40 to £1.00, $0.76 to 1.00 SGD, $0.77 to 1.00 AUD, $0.13 to 1.00 HKD, $0.78 to 1.00 CAD and $0.01 to 1.00 JPY, respectively, as of March 31, 2018.

(b) As of March 31, 2018, the weighted-average interest rate reflecting interest rate swaps was 2.72% (U.S. dollar), 1.89% (British pound sterling), 1.88% (Canadian dollar) and 2.41% (Total). See Note 14 "Derivative Instruments" for further discussion on interest rate swaps.

(c) Based on exchange rates of $1.35 to £1.00, $0.75 to 1.00 SGD, $0.78 to 1.00 AUD,$0.13 to 1.00 HKD, $0.80 to 1.00 CAD and $0.01 to 1.00 JPY, respectively, as of December 31, 2017.

(d) As of December 31, 2017, the weighted-average interest rate reflecting interest rate swaps was 2.72% (U.S. dollar), 1.89% (British pound sterling), 1.88% (Canadian dollar) and 2.41% (Total).

(6) Based on exchange rates of $1.23 to €1.00 as of March 31, 2018 and $1.20 to €1.00 as of December 31, 2017.

(7) Based on exchange rates of $1.40 to £1.00 as of March 31, 2018 and $1.35 to £1.00 as of December 31, 2017.

Global Revolving Credit Facility

On January 15, 2016, we refinanced our global revolving credit facility and entered into a global senior credit agreement for a $2.0 billion senior unsecured revolving credit facility, which we refer to as the global revolving credit facility, that replaced the $2.0 billion revolving credit facility executed on August 15, 2013, as amended. The global revolving credit facility has an accordion feature that enables us to increase the borrowing capacity of the credit facility to up to $2.5 billion, subject to the receipt of lender commitments and other conditions precedent. The refinanced facility matures on January 15, 2020, with twosix-month extension options available. The interest rate for borrowings under the global revolving credit facility equals the applicable index plus a margin which is based on the credit ratings of our long-term debt and is currently 100 basis points. An annual facility fee on the total commitment amount of the facility, based on the credit ratings of our long-term debt, currently 20 basis points, is payable quarterly. Funds may be drawn in U.S., Canadian, Singapore, Australian and Hong Kong dollars, as well as Euro, British pound sterling and Japanese yen. As of March 31, 2018, interest rates are based on 1-month LIBOR, 1-month GBP LIBOR, 1-month EURIBOR, 1-month BBR, 1-month HIBOR, 1-month JPY LIBOR and 1-month CDOR, plus a margin of 1.00%. The facility also bore a base borrowing rate of 4.75% (USD) which is based on the U.S. Prime Rate. We have used and intend to use available borrowings under the global revolving credit facility to acquire additional properties, fund development opportunities and for general working capital and other corporate purposes, including potentially for the repurchase, redemption or retirement of outstanding debt or equity securities. As of March 31, 2018, approximately $22.9 million of letters of credit were issued.

The global revolving credit facility contains various restrictive covenants, including limitations on our ability to incur additional indebtedness, make certain investments or merge with another company, and requirements to maintain financial coverage ratios, including with respect to unencumbered assets. In addition, the global revolving credit facility restricts Digital Realty Trust, Inc. from making distributions to its stockholders, or redeeming or otherwise repurchasing shares of its capital stock, after the occurrence and during the continuance of an event of default, except in limited circumstances including as necessary to enable Digital Realty Trust, Inc. to maintain its qualification as a REIT and to minimize the payment of income or excise tax. As of March 31, 2018, we were in compliance with all of such covenants.

Unsecured Term Loans

On January 15, 2016, we refinanced our senior unsecured multi-currency term loan facility and entered into a term loan agreement, which governs (i) a $1.25 billion5-year senior unsecured term loan, which we refer to as the 5-Year Term Loan, and (ii) a $300 million7-year senior unsecured term loan, which we refer to as the 7-Year Term Loan. The 2016 term loan agreement replaced the $1.0 billion term loan agreement executed on April 16, 2012, as amended. The 5-Year Term Loan matures on January 15, 2021 and the 7-Year Term Loan matures on January 15, 2023. In addition, we have the ability from time to time to increase the aggregate size of lending under the 2016 term loan agreement from $1.55 billion to up to $1.8 billion, subject to receipt of lender commitments and other conditions precedent. Interest rates are based on our senior unsecured debt ratings and are currently 110 basis points and 155 basis points over the applicable index for floating rate advances for the 5-Year Term Loan and the 7-Year Term Loan, respectively. Funds may be drawn in U.S., Canadian, Singapore, Australian and Hong Kong dollars, as well as Euro, British pound sterling and Japanese yen. Based on exchange rates in effect at March 31, 2018, the balance outstanding is approximately $1.4 billion, excluding deferred financing costs. We have used borrowings under the term loans for acquisitions, repayment of indebtedness, development, working capital and general corporate purposes. The covenants under the term loans are consistent with our global revolving credit facility and, as of March 31, 2018, we were in compliance with all of such covenants.

The table below summarizes our debt maturities and principal payments as of March 31, 2018 (in thousands):

	Global Revolving Credit Facility(1)		Unsecured Term Loans		Unsecured Senior Notes			Mortgage Loans		Total Debt
Remainder of 2018	$	—	$	—	$	—		$	401	$	401
2019	—		—		154,050			644		154,694
2020	958,480		—		1,000,000			1,133		1,959,613
2021	—		1,132,931		400,000			—		1,532,931
2022	—		—		800,000			—		800,000
Thereafter	—		300,000		4,361,390			104,000		4,765,390
Subtotal	$	958,480	$	1,432,931	$	6,715,440		$	106,178	$	9,213,029
Unamortized discount	—		—		(17,978		)	—		(17,978		)
Unamortized premium	—		—		—			217		217
Total	$	958,480	$	1,432,931	$	6,697,462		$	106,395	$	9,195,268

(1) Subject to twosix-month extension options exercisable by us. The bank group is obligated to grant the extension options provided we give proper notice, we make certain representations and warranties and no default exists under the global revolving credit facility.

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Income per Share

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Income per Share

Income per Share

The following is a summary of basic and diluted income per share (in thousands, except share and per share amounts):

	Three Months Ended March 31,
	2018		2017
Net income available to common stockholders	$	86,298	$	66,145
Weighted average shares outstanding—basic	205,714,173		159,297,027
Potentially dilutive common shares:
Stock options	—		4
Unvested incentive units	302,016		237,336
Forward equity offering	—		283,388
Market performance-based awards	491,287		603,900
Weighted average shares outstanding—diluted	206,507,476		160,421,655
Income per share:
Basic	$	0.42	$	0.42
Diluted	$	0.42	$	0.41

We have excluded the following potentially dilutive securities in the calculations above as they would be antidilutive or not dilutive:

	Three Months Ended March 31,
	2018	2017
Weighted average of Operating Partnership common units not owned by Digital Realty Trust, Inc.	8,295,287	2,177,874
Potentially dilutive Series C Cumulative Redeemable Perpetual Preferred Stock	1,967,430	—
Potentially dilutive Series F Cumulative Redeemable Preferred Stock	—	1,783,083
Potentially dilutive Series G Cumulative Redeemable Preferred Stock	2,439,505	2,438,074
Potentially dilutive Series H Cumulative Redeemable Preferred Stock	3,574,840	3,572,744
Potentially dilutive Series I Cumulative Redeemable Preferred Stock	2,442,359	2,440,928
Potentially dilutive Series J Cumulative Redeemable Preferred Stock	1,948,598	—
Total	20,668,019	12,412,703

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Income per Unit

3 Months Ended

Mar. 31, 2018

Digital Realty Trust, L.P.

Class of Stock [Line Items]

Income per Unit

Income per Unit

The following is a summary of basic and diluted income per unit (in thousands, except unit and per unit amounts):

	Three Months Ended March 31,
	2018		2017
Net income available to common unitholders	$	89,778	$	67,049
Weighted average units outstanding—basic	214,009,460		161,474,901
Potentially dilutive common units:
Stock options	—		4
Unvested incentive units	302,016		237,336
Forward equity offering	—		283,388
Market performance-based awards	491,287		603,900
Weighted average units outstanding—diluted	214,802,763		162,599,529
Income per unit:
Basic	$	0.42	$	0.42
Diluted	$	0.42	$	0.41

We have excluded the following potentially dilutive securities in the calculations above as they would be antidilutive or not dilutive:

	Three Months Ended March 31,
	2018	2017
Potentially dilutive Series C Cumulative Redeemable Perpetual Preferred Units	1,967,430	—
Potentially dilutive Series F Cumulative Redeemable Preferred Units	—	1,783,083
Potentially dilutive Series G Cumulative Redeemable Preferred Units	2,439,505	2,438,074
Potentially dilutive Series H Cumulative Redeemable Preferred Units	3,574,840	3,572,744
Potentially dilutive Series I Cumulative Redeemable Preferred Units	2,442,359	2,440,928
Potentially dilutive Series J Cumulative Redeemable Preferred Units	1,948,598	—
Total	12,372,732	10,234,829

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Income Taxes

3 Months Ended

Mar. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Digital Realty Trust, Inc. has elected to be treated and believes that it has been organized and has operated in a manner that has enabled it to qualify as a REIT for federal income tax purposes. As a REIT, Digital Realty Trust, Inc. is generally not subject to corporate level federal income taxes on taxable income distributed currently to its stockholders. Since inception, Digital Realty Trust, Inc. has distributed at least 100% of its taxable income annually and intends to do so for the tax year ending December 31, 2018. As such, no provision for federal income taxes has been included in the Company's accompanying condensed consolidated financial statements for the three months ended March 31, 2018 and 2017.

The Operating Partnership is a partnership and is not required to pay federal income tax. Instead, taxable income is allocated to its partners, who include such amounts on their federal income tax returns. As such, no provision for federal income taxes has been included in the Operating Partnership’s accompanying condensed consolidated financial statements.

We have elected taxable REIT subsidiary (“TRS”) status for some of our consolidated subsidiaries. In general, a TRS may provide services that would otherwise be considered impermissible for REITs to provide and may hold assets that REITs cannot hold directly. Income taxes for TRS entities were accrued, as necessary, for the three months ended March 31, 2018 and 2017.

For our TRS entities and foreign subsidiaries that are subject to U.S. federal, state and foreign income taxes, deferred tax assets and liabilities are established for temporary differences between the financial reporting basis and the tax basis of assets and liabilities at the enacted tax rates expected to be in effect when the temporary differences reverse. A valuation allowance for deferred tax assets is provided if we believe it is more likely than not that the deferred tax asset may not be realized, based on available evidence at the time the determination is made. An increase or decrease in the valuation allowance that results from the change in circumstances that causes a change in our judgment about the realizability of the related deferred tax asset is included in the income statement. Deferred tax assets (net of valuation allowance) and liabilities for our TRS entities and foreign subsidiaries were accrued, as necessary, for the three months ended March 31, 2018 and 2017. As of March 31, 2018 and December 31, 2017, we had deferred tax liabilities net of deferred tax assets of approximately $172.3 million and $167.0 million, respectively, primarily related to our foreign properties, classified in accounts payable and other accrued expenses in the condensed consolidated balance sheet. The majority of our net deferred tax liability relates to differences between tax basis and book basis of the assets acquired in the Sentrum portfolio acquisition during 2012 and the European portfolio acquisition in July 2016. The valuation allowance against the deferred tax assets at March 31, 2018 and December 31, 2017 relate primarily to net operating loss carryforwards attributable to certain foreign jurisdictions and from the acquisition of Telx, that we do not expect to utilize, and deferred tax assets resulting from certain foreign real estate acquisition costs, which are not depreciated for tax purposes, but are deductible upon ultimate sale of the property. Given the indefinite holding period associated with these assets, realization of these deferred tax assets is not more-likely-than-not as of March 31, 2018 and December 31, 2017.

The federal tax legislation enacted on December 22, 2017, commonly known as the Tax Cuts and Jobs Act (the “2017 Tax Legislation”), reduced the corporate federal tax rate in the U.S. to 21%, effective upon January 1, 2018. As such, deferred tax assets and liabilities are remeasured using the lower corporate federal tax rate at December 31, 2017. While we do not expect other material impacts, the new tax rules are complex and lack developed administrative guidance. We continue to work with our tax advisors to analyze and determine the full impact that the 2017 Tax Legislation as a whole will have on us.

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Equity and Accumulated Other Comprehensive Loss, Net

3 Months Ended

Mar. 31, 2018

Equity [Abstract]

Equity and Accumulated Other Comprehensive Loss, Net

Equity and Accumulated Other Comprehensive Loss, Net

(a) Noncontrolling Interests in Operating Partnership

Noncontrolling interests in the Operating Partnership relate to the interests that are not owned by Digital Realty Trust, Inc. The following table shows the ownership interests in the Operating Partnership as of March 31, 2018 and December 31, 2017:

	March 31, 2018			December 31, 2017
	Number of units	Percentage of total		Number of units	Percentage of total
Digital Realty Trust, Inc.	205,874,914	95.9	%	205,470,300	96.0	%
Noncontrolling interests consist of:
Common units held by third parties	6,730,727	3.2	%	6,899,094	3.2	%
Incentive units held by employees and directors (see Note 14)	2,005,761	0.9	%	1,590,001	0.8	%
	214,611,402	100.0	%	213,959,395	100.0	%

Limited partners have the right to require the Operating Partnership to redeem part or all of their common units for cash based on the fair market value of an equivalent number of shares of Digital Realty Trust, Inc. common stock at the time of redemption. Alternatively, Digital Realty Trust, Inc. may elect to acquire those common units in exchange for shares of Digital Realty Trust, Inc. common stock on a one-for-one basis, subject to adjustment in the event of stock splits, stock dividends, issuance of stock rights, specified extraordinary distributions and similar events. Pursuant to authoritative accounting guidance, Digital Realty Trust, Inc. evaluated whether it controls the actions or events necessary to issue the maximum number of shares that could be required to be delivered under the share settlement of the noncontrolling Operating Partnership common and incentive units. Based on the results of this analysis, we concluded that the common units and incentive units of the Operating Partnership met the criteria to be classified within equity, except for certain common units issued to certain former unitholders in DuPont Fabros Technology, L.P. ("DFT Operating Partnership") in the DuPont Fabros Technology merger ("DFT Merger"), which are subject to certain restrictions and, accordingly, are not presented as permanent equity in the condensed consolidated balance sheet.

In connection with the initial public offering of DuPont Fabros Technology, Inc. ("DFT") in 2007, DFT, the DFT Operating Partnership and certain DFT Operating Partnership unitholders entered into a tax protection agreement to assist such unitholders in deferring certain U.S. federal income tax liabilities that may have otherwise resulted from the contribution transactions undertaken in connection with the initial public offering and the ownership of interests in the DFT Operating Partnership and to set forth certain agreements with respect to other tax matters. In connection with the DFT Merger, certain DFT Operating Partnership unitholders entered into a new tax protection agreement with Digital Realty Trust, Inc. and the Operating Partnership that replaced and superseded the DFT tax protection agreement, effective as of the closing of the DFT Merger. Pursuant to the new tax protection agreement, such DFT Operating Partnership unitholders entered into a guarantee of certain debt of a subsidiary of the Operating Partnership. The Operating Partnership must offer such DFT Operating Partnership unitholders a new guarantee opportunity in the event any guaranteed debt is repaid prior to March 1, 2023. If the Operating Partnership fails to offer the guarantee opportunity or to allocate guaranteed debt to any such DFT Operating Partnership unitholder as required under the new tax protection agreement, the Operating Partnership generally would be required to indemnify each such DFT Operating Partnership unitholder for the tax liability resulting from such failure, as determined under the new tax protection agreement.

The redemption value of the noncontrolling Operating Partnership common units and the vested incentive units was approximately $889.0 million and $887.0 million based on the closing market price of Digital Realty Trust, Inc. common stock on March 31, 2018 and December 31, 2017, respectively.

The following table shows activity for the noncontrolling interests in the Operating Partnership for the three months ended March 31, 2018:

	Common Units		Incentive Units		Total
As of December 31, 2017	6,899,094		1,590,001		8,489,095
Redemption of common units for shares of Digital Realty Trust, Inc. common stock (1)	(168,367	)	—		(168,367	)
Incentive units issued upon achievement of market performance condition	—		326,947		326,947
Grant of incentive units to employees and directors	—		95,592		95,592
Cancellation / forfeitures of incentive units held by employees and directors	—		(6,779	)	(6,779	)
As of March 31, 2018	6,730,727		2,005,761		8,736,488

(1) Redemption of common units were recorded as a reduction to noncontrolling interests in the Operating Partnership and an increase to common stock and additional paid in capital based on the book value per unit in the accompanying condensed consolidated balance sheet of Digital Realty Trust, Inc.

(b) Dividends

We have declared and paid the following dividends on our common and preferred stock for the three months ended March 31, 2018 (in thousands, except per share data):

Date dividend declared	Dividend payment date	Series C Preferred Stock		Series G Preferred Stock		Series H Preferred Stock		Series I Preferred Stock		Series J Preferred Stock		Common Stock
March 1, 2018	March 30, 2018	$	3,333	$	3,672	$	6,730	$	3,969	$	2,625	$	208,015
Annual rate of dividend per share		$	1.65625	$	1.46875	$	1.84375	$	1.58750	$	1.31250	$	4.04000

Distributions out of Digital Realty Trust, Inc.’s current or accumulated earnings and profits are generally classified as dividends whereas distributions in excess of its current and accumulated earnings and profits, to the extent of a stockholder’s U.S. federal income tax basis in Digital Realty Trust, Inc.’s stock, are generally classified as a return of capital. Distributions in excess of a stockholder’s U.S. federal income tax basis in Digital Realty Trust, Inc.’s stock are generally characterized as capital gain. Cash provided by operating activities has generally been sufficient to fund all distributions, however, in the future we may also need to utilize borrowings under the global revolving credit facility to fund all or a portion of distributions.

(c) Accumulated Other Comprehensive Loss, Net

The accumulated balances for each item within other comprehensive income (loss), net are as follows (in thousands):

	Foreign currency translation adjustments			Cash flow hedge adjustments			Foreign currency net investment hedge adjustments		Accumulated other comprehensive  income (loss), net
Balance as of December 31, 2017	$	(147,370	)	$	13,200		$	25,738	$	(108,432	)
Net current period change	(3,598		)	8,282			—		4,684
Reclassification to interest expense from interest rate swaps	—			(226		)	—		(226		)
Balance as of March 31, 2018	$	(150,968	)	$	21,256		$	25,738	$	(103,974	)

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Capital and Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2018

Digital Realty Trust, L.P.

Class of Stock [Line Items]

Capital and Accumulated Other Comprehensive Loss

Capital and Accumulated Other Comprehensive Loss

(a) Allocations of Net Income and Net Losses to Partners

Except for special allocations to holders of profits interest units described below in Note 13(a) under the heading “Incentive Plan—Long-Term Incentive Units,” the Operating Partnership’s net income will generally be allocated to Digital Realty Trust, Inc. (the General Partner) to the extent of the accrued preferred return on its preferred units, and then to the General Partner and the Operating Partnership’s limited partners in accordance with the respective percentage interests in the common units issued by the Operating Partnership. Net loss will generally be allocated to the General Partner and the Operating Partnership’s limited partners in accordance with the respective common percentage interests in the Operating Partnership until the limited partner’s capital is reduced to zero and any remaining net loss would be allocated to the General Partner. However, in some cases, losses may be disproportionately allocated to partners who have guaranteed our debt. The allocations described above are subject to special allocations relating to depreciation deductions and to compliance with the provisions of Sections 704(b) and 704(c) of the Code, and the associated Treasury Regulations.

(b) Partnership Units

Limited partners have the right to require the Operating Partnership to redeem part or all of their common units for cash based on the fair market value of an equivalent number of shares of the General Partner’s common stock at the time of redemption. Alternatively, the General Partner may elect to acquire those common units in exchange for shares of the General Partner’s common stock on a one-for-one basis, subject to adjustment in the event of stock splits, stock dividends, issuance of stock rights, specified extraordinary distributions and similar events. Pursuant to authoritative accounting guidance, Digital Realty Trust, Inc. evaluated whether it controls the actions or events necessary to issue the maximum number of shares that could be required to be delivered under the share settlement of the noncontrolling Operating Partnership common and incentive units. Based on the results of this analysis, we concluded that the common units and incentive units of the Operating Partnership met the criteria to be classified within capital, except for certain common units issued to certain former DFT Operating Partnership unitholders in the DFT Merger, which are subject to certain restrictions and, accordingly, are not presented as permanent capital in the condensed consolidated balance sheet.

In connection with the initial public offering of DFT in 2007, DFT, the DFT Operating Partnership and certain DFT Operating Partnership unitholders entered into a tax protection agreement to assist such unitholders in deferring certain U.S. federal income tax liabilities that may have otherwise resulted from the contribution transactions undertaken in connection with the initial public offering and the ownership of interests in the DFT Operating Partnership and to set forth certain agreements with respect to other tax matters. In connection with the DFT Merger, certain DFT Operating Partnership unitholders entered into a new tax protection agreement with Digital Realty Trust, Inc. and the Operating Partnership that replaced and superseded the DFT tax protection agreement, effective as of the closing of the DFT Merger. Pursuant to the new tax protection agreement, such DFT Operating Partnership unitholders entered into a guarantee of certain debt of a subsidiary of the Operating Partnership. The Operating Partnership must offer such DFT Operating Partnership unitholders a new guarantee opportunity in the event any guaranteed debt is repaid prior to March 1, 2023. If the Operating Partnership fails to offer the guarantee opportunity or to allocate guaranteed debt to any such DFT Operating Partnership unitholder as required under the new tax protection agreement, the Operating Partnership generally would be required to indemnify each such DFT Operating Partnership unitholder for the tax liability resulting from such failure, as determined under the new tax protection agreement.

The redemption value of the limited partners’ common units and the vested incentive units was approximately $889.0 million and $887.0 million based on the closing market price of Digital Realty Trust, Inc.’s common stock on March 31, 2018 and December 31, 2017, respectively.

(c) Distributions

All distributions on the Operating Partnership’s units are at the discretion of Digital Realty Trust, Inc.’s board of directors. The Operating Partnership has declared and paid the following distributions on its common and preferred units for the three months ended March 31, 2018 (in thousands, except for per unit data):

Date distribution declared	Distribution payment date	Series C Preferred Units		Series G Preferred Units		Series H Preferred Units		Series I Preferred Units		Series J Preferred Units		Common Units
March 1, 2018	March 30, 2018	$	3,333	$	3,672	$	6,730	$	3,969	$	2,625	$	216,953
Annual rate of distribution per unit		$	1.65625	$	1.46875	$	1.84375	$	1.58750	$	1.31250	$	4.04000

(d) Accumulated Other Comprehensive Loss

The accumulated balances for each item within other comprehensive income are as follows (in thousands):

	Foreign currency translation adjustments			Cash flow hedge adjustments			Foreign currency net investment hedge adjustments		Accumulated other comprehensive loss
Balance as of December 31, 2017	$	(151,795	)	$	12,758		$	26,152	$	(112,885	)
Net current period change	(3,743		)	8,616			—		4,873
Reclassification to interest expense from interest rate swaps	—			(235		)	—		(235		)
Balance as of March 31, 2018	$	(155,538	)	$	21,139		$	26,152	$	(108,247	)

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Incentive Plan

3 Months Ended

Mar. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Incentive Plan

Incentive Plan

On April 28, 2014, our stockholders approved the Digital Realty Trust, Inc., Digital Services, Inc., and Digital Realty Trust, L.P. 2014 Incentive Award Plan (as amended, the 2014 Incentive Award Plan). The 2014 Incentive Award Plan became effective and replaced the Amended and Restated 2004 Incentive Award Plan, as amended, as of the date of such stockholder approval. The material features of the 2014 Incentive Award Plan are described in our definitive Proxy Statement filed on March 19, 2014 in connection with the 2014 Annual Meeting, which description is incorporated herein by reference. Effective as of September 14, 2017, the 2014 Incentive Award Plan was amended to provide that shares which remained available for issuance under DFT’s Amended and Restated 2011 Equity Incentive Plan immediately prior to the closing of the DFT Merger (as adjusted and converted into shares of Digital Realty Trust, Inc.’s common stock) may be used for awards under the 2014 Incentive Award Plan and will not reduce the shares authorized for grant under the 2014 Incentive Award Plan, to the extent that using such shares is permitted without stockholder approval under applicable stock exchange rules. In connection with the amendment to the 2014 Incentive Award Plan, on September 22, 2017, Digital Realty Trust, Inc. registered an additional 3,714,560 shares that may be issued pursuant to the 2014 Incentive Award Plan.

As of March 31, 2018, approximately 7.1 million shares of common stock, including awards convertible into or exchangeable for shares of common stock, remained available for future issuance under the 2014 Incentive Award Plan. Each long-term incentive unit and each Class D unit issued under the 2014 Incentive Award Plan counts as one share of common stock for purposes of calculating the limit on shares that may be issued under the 2014 Incentive Award Plan and the individual award limits set forth therein.

Below is a summary of our compensation expense for the three months ended March 31, 2018 and 2017 and our unearned compensation as of March 31, 2018 and December 31, 2017 (in millions):

	Deferred Compensation								Unearned Compensation				Expected period to recognize unearned compensation (in years)
	Expensed				Capitalized				As of March 31, 2018		As of December 31, 2017
	Three Months Ended March 31,
Type of incentive award	2018		2017		2018		2017
Long-term incentive units	$	0.9	$	0.7	$	0.2	$	0.4	$	15.0	$	6.9	3.2
Market performance-based awards	3.1		2.1		0.3		0.7		44.7		24.7		2.6
Restricted stock	1.5		1.0		1.1		0.8		30.5		17.5		3.2

(a) Long-Term Incentive Units

Long-term incentive units, which are also referred to as profits interest units, may be issued to eligible participants for the performance of services to or for the benefit of the Operating Partnership. Long-term incentive units (other than Class D units), whether vested or not, will receive the same quarterly per unit distributions as Operating Partnership common units, which equal the per share distributions on Digital Realty Trust, Inc. common stock. Initially, long-term incentive units do not have full parity with common units with respect to liquidating distributions. If such parity is reached, vested long-term incentive units may be converted into an equal number of common units of the Operating Partnership at any time, and thereafter enjoy all the rights and privileges of common units of the Operating Partnership, including redemption rights. For a discussion of how long-term incentive units achieve parity with common units, see Note 14(a) to our consolidated financial statements for the fiscal year ended December 31, 2017, included in our Annual Report on 10-K for the year ended December 31, 2017.

Below is a summary of our long-term incentive unit activity for the three months ended March 31, 2018.

Unvested Long-term Incentive Units	Units		Weighted-Average Grant Date Fair Value
Unvested, beginning of period	99,295		$	90.59
Granted	92,361		99.01
Vested	(16,313	)	100.18
Unvested, end of period	175,343		$	94.13

The grant date fair values, which equal the market price of Digital Realty Trust, Inc. common stock on the applicable grant date(s), are being expensed on a straight-line basis for service awards over four years, the current vesting period of the long-term incentive units.

(b) Market Performance-Based Awards

During the three months ended March 31, 2018 and 2017, the Compensation Committee of the Board of Directors of Digital Realty Trust, Inc. approved the grant of market performance-based Class D units of the Operating Partnership and market performance-based restricted stock units, or RSUs, covering shares of Digital Realty Trust, Inc.’s common stock (collectively, the “awards”), under the 2014 Incentive Award Plan to officers and employees of the Company.

The awards, which were determined to contain a market condition, utilize total shareholder return, or TSR, over a three-year measurement period as the market performance metric. Awards will vest based on Digital Realty Trust, Inc.’s TSR relative to the MSCI US REIT Index, or RMS, over a three-year market performance period, or the Market Performance Period, commencing in January 2018 or January 2017, as applicable (or, if earlier, ending on the date on which a change in control of the Company occurs), subject to continued services. Vesting with respect to the market condition is measured based on the difference between Digital Realty Trust, Inc.’s TSR percentage and the TSR percentage of the RMS, or the RMS Relative Market Performance. In the event that the RMS Relative Market Performance during the Market Performance Period is achieved at the “threshold,” “target” or “high” level as set forth below, the awards will become vested as to the market condition with respect to the percentage of Class D units or RSUs, as applicable, set forth below:

Level	RMS Relative Market Performance	Market Performance Vesting Percentage
Below Threshold Level	≤ -300 basis points	0%
Threshold Level	-300 basis points	25%
Target Level	100 basis points	50%
High Level	> 500 basis points	100%

If the RMS Relative Market Performance falls between the levels specified above, the percentage of the award that will vest with respect to the market condition will be determined using straight-line linear interpolation between such levels.

In January 2018, following the completion of the applicable Market Performance Period, the Compensation Committee determined that the high level had been achieved for the 2015 awards and, accordingly, 363,193 class D units (including 36,246 distribution equivalent units that immediately vested on December 31, 2017 upon the high level being achieved) and 49,707 RSUs performance vested, subject to service-based vesting. On February 27, 2018, 50% of the 2015 awards vested and the remaining 50% will vest on February 27, 2019, subject to continued employment through each applicable vesting date.

Following the completion of the applicable Market Performance Period, the 2017 awards that satisfy the market condition, if any, will vest 50% on February 27, 2020 and 50% on February 27, 2021, subject to continued employment through each applicable vesting date. Following the completion of the applicable Market Performance Period, the 2018 awards that satisfy the market condition, if any, will vest 50% on February 27, 2021 and 50% on February 27, 2022, subject to continued employment through each applicable vesting date.

In the event of a change in control, termination of employment by the Company without cause, or termination of employment by the award recipient for good reason, death, disability or retirement, service-based vesting will be accelerated, in full or on a pro rata basis in any case prior to the completion of the Market Performance Period. However, vesting with respect to the market condition will continue to be measured based on RMS Relative Market Performance during the three-year Market Performance Period (or, in the case of a change in control, shortened Market Performance Period).

The fair values of the 2018 awards and 2017 awards granted were measured using a Monte Carlo simulation to estimate the probability of the market vesting condition being satisfied. Digital Realty Trust, Inc.’s achievement of the market vesting condition is contingent on its TSR over a three-year market performance period, relative to the total shareholder return of the RMS. The Monte Carlo simulation is a probabilistic technique based on the underlying theory of the Black-Scholes formula, which was run for 100,000 trials to determine the fair value of the awards. For each trial, the payoff to an award is calculated at the settlement date and is then discounted to the grant date at a risk-free interest rate. The total expected value of the awards on the grant date was determined by multiplying the average value per award over all trials by the number of awards granted. Assumptions used in the valuations are summarized as follows:

Award Date	Expected Stock Price Volatility	Risk-Free Interest rate
January 1, 2017	25%	1.49%
February 28, 2017	23%	1.43%
January 1, 2018	22%	1.98%
March 1, 2018	22%	2.34%
March 9, 2018	22%	2.42%

These valuations were performed in a risk-neutral framework, so no assumption was made with respect to an equity risk premium.

As of March 31, 2018, 2,165,692 Class D units and 590,569 market performance-based RSUs had been awarded to our executive officers and other employees. The number of units granted reflects the maximum number of Class D units or market performance-based RSUs, as applicable, which will become vested assuming the achievement of the highest level of RMS Relative Market Performance under the awards and, in the case of the Class D units, also includes distribution equivalent units. The fair value of these awards of approximately $96.7 million will be recognized as compensation expense on a straight-line basis over the expected service period of approximately four years. If the market conditions are not met, at the end of the applicable performance periods, the unamortized amount will be recognized as an expense at that time.

(c) Restricted Stock

Below is a summary of our restricted stock activity for the three months ended March 31, 2018.

Unvested Restricted Stock	Shares		Weighted-Average Grant Date Fair Value
Unvested, beginning of period	259,422		$	90.54
Granted	154,647		99.34
Vested	(80,614	)	81.99
Unvested, end of period	333,455		$	96.64

The grant date fair values, which equal the market price of Digital Realty Trust, Inc. common stock on the grant date, are expensed on a straight-line basis for service awards over the vesting period of the restricted stock, which is generally four years.

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Derivative Instruments

3 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative Instruments

Currently, we use interest rate swaps to manage our interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves.

To comply with the provisions of fair value accounting guidance, we incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by us and our counterparties. However, as of March 31, 2018, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. We do not have any fair value measurements on a recurring basis using significant unobservable inputs (Level 3) as of March 31, 2018 or December 31, 2017.

The Company presents its interest rate derivatives in its condensed consolidated balance sheets on a gross basis as interest rate swap assets (recorded in other assets) and interest rate swap liabilities (recorded in accounts payable and other accrued liabilities). As of March 31, 2018, there was no impact from netting arrangements as the Company did not have any derivatives in liability positions.

Cash Flow Hedges of Interest Rate Risk

Our objectives in using interest rate derivatives are to add stability to interest expense and to manage our exposure to interest rate movements related to certain floating rate debt obligations. To accomplish this objective, we primarily use interest rate swaps as part of our interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

We record all our interest rate swaps on the condensed consolidated balance sheet at fair value. In determining the fair value of our interest rate swaps, we consider the credit risk of our counterparties. These counterparties are generally larger financial institutions engaged in providing a variety of financial services. These institutions generally face similar risks regarding adverse changes in market and economic conditions, including, but not limited to, fluctuations in interest rates, exchange rates, equity and commodity prices and credit spreads. The recent and pervasive disruptions in the financial markets have heightened the risks to these institutions.

As of March 31, 2018 and December 31, 2017, we had the following outstanding interest rate derivatives that were designated as effective cash flow hedges of interest rate risk (in thousands):

Notional Amount										Fair Value at Significant Other Observable Inputs (Level 2)
As of March 31, 2018			As of December 31, 2017			Type of Derivative	Strike Rate	Effective Date	Expiration Date	As of March 31, 2018 (5)		As of December 31, 2017(5)
Currently-paying contracts
$	206,000	(1)	$	206,000		Swap	1.611	Jun 15, 2017	Jan 15, 2020	$	2,551	$	1,409
54,905		(1)	54,905			Swap	1.605	Jun 6, 2017	Jan 6, 2020	673		374
75,000		(1)	75,000		(1)	Swap	1.016	Apr 6, 2016	Jan 6, 2021	2,862		2,260
75,000		(1)	75,000		(1)	Swap	1.164	Jan 15, 2016	Jan 15, 2021	2,583		1,947
300,000		(2)	300,000		(2)	Swap	1.435	Jan 15, 2016	Jan 15, 2023	15,001		9,978
237,519		(3)	229,012		(3)	Swap	0.792	Jan 15, 2016	Jan 15, 2019	9		(430		)
76,387		(4)	78,357		(4)	Swap	0.779	Jan 15, 2016	Jan 15, 2021	2,972		3,034
$	1,024,811		$	1,018,274						$	26,651	$	18,572

(1) Represents portions of the U.S. dollar tranche of the 5-Year Term Loan.

(2) Represents the U.S. dollar tranche of the 7-Year Term Loan.

(3) Represents the British pound sterling tranche of the 5-Year Term Loan. Translation to U.S. dollars is based on exchange rates of $1.40 to £1.00 as of March 31, 2018 and $1.35 to £1.00 as of December 31, 2017.

(4) Represents the Canadian dollar tranche of the 5-Year Term Loan. Translation to U.S. dollars is based on exchange rates of $0.78 to 1.00 CAD as of March 31, 2018 and $0.80 to 1.00 CAD as of December 31, 2017.

(5) Balance recorded in other assets in the consolidated balance sheets if positive and recorded in accounts payable and other accrued liabilities in the consolidated balance sheets if negative.

As of March 31, 2018, we estimate that an additional $4.7 million will be reclassified as a decrease to interest expense during the twelve months ended March 31, 2019, when the hedged forecasted transactions impact earnings.

Foreign Currency Net Investment Hedges

During the three months ended June 30, 2016, we entered into a series of forward contracts pursuant to which we agreed to sell an amount of foreign currency for an agreed upon amount of U.S. dollars. These forward contracts were executed to manage foreign currency exposures associated with certain transactions. As of June 30, 2016, the forward contracts did not meet the criteria for hedge accounting under GAAP and had a fair value of approximately $37.8 million. On July 1, 2016, the four forward contracts still in place met the criteria for net investment hedge accounting. During the year ended December 31, 2017, we terminated the four forward contracts with a notional amount of GBP 357.3 million. In connection with the settlement, we received approximately $64.0 million in proceeds and the related amount of approximately $26.2 million of accumulated other comprehensive income (AOCI) will remain in AOCI until the Company sells or liquidates its GBP-denominated investments, which has not occurred as of March 31, 2018.

Credit-risk-related Contingent Features

We have agreements with each of our derivative counterparties that contain a provision where we could be declared in default on our derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to our default on the indebtedness. As of March 31, 2018, we did not have any derivatives in a net liability position, and have not posted any collateral related to these agreements.

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Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

We disclose fair value information about all financial instruments, whether or not recognized in the condensed consolidated balance sheets, for which it is practicable to estimate fair value. Current accounting guidance requires the Company to disclose fair value information about all financial instruments, whether or not recognized in the balance sheets, for which it is practicable to estimate fair value.

The Company’s disclosures of estimated fair value of financial instruments at March 31, 2018 and December 31, 2017 were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts.

The carrying amounts for cash and cash equivalents, restricted cash, accounts and other receivables, accounts payable and other accrued liabilities, accrued dividends and distributions, security deposits and prepaid rents approximate fair value because of the short-term nature of these instruments. As described in Note 14 "Derivative Instruments", the interest rate swaps are recorded at fair value.

We calculate the fair value of our mortgage loans, unsecured term loan and unsecured senior notes based on currently available market rates assuming the loans are outstanding through maturity and considering the collateral and other loan terms. In determining the current market rate for fixed rate debt, a market spread is added to the quoted yields on federal government treasury securities with similar maturity dates to our debt. The carrying value of our global revolving credit facility approximates fair value, due to the variability of interest rates.

As of March 31, 2018 and December 31, 2017, the aggregate estimated fair value and carrying value of our global revolving credit facility, unsecured term loans, unsecured senior notes and mortgage loans were as follows (in thousands):

	Categorization under the fair value hierarchy	As of March 31, 2018				As of December 31, 2017
		Estimated Fair Value		Carrying Value		Estimated Fair Value		Carrying Value
Global revolving credit facility (1)(5)	Level 2	$	958,480	$	958,480	$	558,191	$	558,191
Unsecured term loans (2)(6)	Level 2	1,432,931		1,432,931		1,425,117		1,425,117
Unsecured senior notes (3)(4)(7)	Level 2	6,907,183		6,697,462		6,976,603		6,608,545
Mortgage loans (3)(8)	Level 2	106,346		106,395		106,523		106,611
		$	9,404,940	$	9,195,268	$	9,066,434	$	8,698,464

(1) The carrying value of our global revolving credit facility approximates estimated fair value, due to the variability of interest rates and the stability of our credit ratings.

(2) The carrying value of our unsecured term loans approximates estimated fair value, due to the variability of interest rates and the stability of our credit ratings.

(3) Valuations for our unsecured senior notes and mortgage loans are determined based on the expected future payments discounted at risk-adjusted rates. The 2019 Notes, 5.875% 2020 Notes, 3.400% 2020 Notes, 2021 Notes, 3.950% 2022 Notes, 3.625% 2022 Notes, 4.750% 2023 Notes, 2.750% 2023 Notes, 2.625% 2024 Notes, 2.750% 2024 Notes, 4.750% 2025 Notes, 4.250% 2025 Notes, 2027 Notes and 2029 Notes are valued based on quoted market prices.

(4) The carrying value of the 5.875% 2020 Notes, 3.400% 2020 Notes, 2021 Notes, 3.625% 2022 Notes, 3.950% 2022 Notes, 4.750% 2023 Notes, 2.750% 2023 Notes, 2.625% 2024 Notes, 2.750% 2024 Notes, 4.250% 2025 Notes, 2027 Notes and 2029 Notes are net of discount of $18.0 million and $18.5 million in the aggregate as of March 31, 2018 and December 31, 2017, respectively.

(5) The estimated fair value and carrying value are exclusive of deferred financing costs of $6.4 million and $7.2 million as of March 31, 2018 and December 31, 2017, respectively.

(6) The estimated fair value and carrying value are exclusive of deferred financing costs of $4.4 million and $4.8 million as of March 31, 2018 and December 31, 2017, respectively.

(7) The estimated fair value and carrying value are exclusive of deferred financing costs of $36.7 million and $37.8 million as of March 31, 2018 and December 31, 2017, respectively.

(8) The estimated fair value and carrying value are exclusive of deferred financing costs of $0.0 million and $0.0 million as of March 31, 2018 and December 31, 2017, respectively.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

(a) Construction Commitments

Our properties require periodic investments of capital for tenant-related capital expenditures and for general capital improvements including ground up construction. From time to time in the normal course of our business, we enter into various construction contracts with third parties that may obligate us to make payments. At March 31, 2018, we had open commitments, including amounts reimbursable of approximately $10.1 million, related to construction contracts of approximately $467.8 million.

(b) Legal Proceedings

The Company is involved in legal proceedings arising in the ordinary course of business from time to time.  As of March 31, 2018, the Company is not currently a party to any legal proceedings that it believes would have a material adverse effect on its financial position, results of operations or liquidity nor, to its knowledge, are any such legal proceedings threatened against it.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Principles of Consolidation and Basis of Presentation

Principles of Consolidation and Basis of Presentation

The accompanying interim condensed consolidated financial statements include all of the accounts of Digital Realty Trust, Inc., the Operating Partnership and the subsidiaries of the Operating Partnership. Intercompany balances and transactions have been eliminated.

The accompanying interim condensed consolidated financial statements are unaudited, but have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and in compliance with the rules and regulations of the United States Securities and Exchange Commission. Accordingly, they do not include all of the disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments necessary for a fair presentation have been included. All such adjustments are considered to be of a normal recurring nature, except as otherwise indicated. The results of operations for the interim periods are not necessarily indicative of the results to be obtained for the full fiscal year. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our annual report on Form 10-K for the year ended December 31, 2017.

The notes to the condensed consolidated financial statements of Digital Realty Trust, Inc. and the Operating Partnership have been combined to provide the following benefits:

• enhancing investors’ understanding of the Company and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;

• eliminating duplicative disclosure and providing a more streamlined and readable presentation since a substantial portion of the disclosure applies to both the Company and the Operating Partnership; and

• creating time and cost efficiencies through the preparation of one set of notes instead of two separate sets of notes.

There are a few differences between the Company and the Operating Partnership, which are reflected in these condensed consolidated financial statements. We believe it is important to understand the differences between the Company and the Operating Partnership in the context of how we operate as an interrelated consolidated company. Digital Realty Trust, Inc.’s only material asset is its ownership of partnership interests of the Operating Partnership. As a result, Digital Realty Trust, Inc. generally does not conduct business itself, other than acting as the sole general partner of the Operating Partnership, issuing public securities from time to time and guaranteeing certain unsecured debt of the Operating Partnership and certain of its subsidiaries and affiliates. Digital Realty Trust, Inc. itself has not issued any indebtedness but guarantees the unsecured debt of the Operating Partnership and certain of its subsidiaries and affiliates, as disclosed in these notes.

The Operating Partnership holds substantially all the assets of the Company and holds the ownership interests in the Company’s joint ventures. The Operating Partnership conducts the operations of the business and is structured as a partnership with no publicly traded equity. Except for net proceeds from public equity issuances by Digital Realty Trust, Inc., which are generally contributed to the Operating Partnership in exchange for partnership units, the Operating Partnership generally generates the capital required by the Company’s business primarily through the Operating Partnership’s operations, by the Operating Partnership’s or its affiliates' direct or indirect incurrence of indebtedness or through the issuance of partnership units.

The presentation of noncontrolling interests in operating partnership, stockholders’ equity and partners’ capital are the main areas of difference between the condensed consolidated financial statements of Digital Realty Trust, Inc. and those of the Operating Partnership. The common limited partnership interests held by the limited partners in the Operating Partnership are presented as limited partners’ capital within partners’ capital in the Operating Partnership’s condensed consolidated financial statements and as noncontrolling interests in operating partnership within equity in Digital Realty Trust, Inc.’s condensed consolidated financial statements. The common and preferred partnership interests held by Digital Realty Trust, Inc. in the Operating Partnership are presented as general partner’s capital within partners’ capital in the Operating Partnership’s condensed consolidated financial statements and as preferred stock, common stock, additional paid-in capital and accumulated dividends in excess of earnings within stockholders’ equity in Digital Realty Trust, Inc.’s condensed consolidated financial statements. The differences in the presentations between stockholders’ equity and partners’ capital result from the differences in the equity issued at the Digital Realty Trust, Inc. and the Operating Partnership levels.

To help investors understand the significant differences between the Company and the Operating Partnership, these consolidated financial statements present the following separate sections for each of the Company and the Operating Partnership:

• condensed consolidated face financial statements; and

• the following notes to the condensed consolidated financial statements:

• "Debt of the Company" and "Debt of the Operating Partnership";

• "Income per Share" and "Income per Unit"; and

• "Equity and Accumulated Other Comprehensive Loss, Net of the Company" and "Capital and Accumulated Other Comprehensive Loss of the Operating Partnership".

In the sections that combine disclosure of Digital Realty Trust, Inc. and the Operating Partnership, these notes refer to actions or holdings as being actions or holdings of the Company. Although the Operating Partnership is generally the entity that enters into contracts and joint ventures and holds assets and debt, reference to the Company is appropriate because the business is one enterprise and the Company generally operates the business through the Operating Partnership.

Cash Equivalents

Cash Equivalents

For the purpose of the condensed consolidated statements of cash flows, we consider short-term investments with original maturities of 90 days or less to be cash equivalents. As of March 31, 2018, cash equivalents consist of investments in money market instruments.

Investment in Unconsolidated Joint Ventures

Investments in Unconsolidated Joint Ventures

The Company’s investments in unconsolidated joint ventures are accounted for using the equity method, whereby our investment is increased for capital contributed and our share of the joint venture's net income and decreased by distributions we receive and our share of any losses of the joint ventures. We do not record losses of the joint ventures in excess of our investment balances unless we are liable for the obligations of the joint venture or are otherwise committed to provide financial support to the joint venture. Likewise, and as long as we have no explicit or implicit obligations to the joint venture, we will suspend equity method accounting to the extent that cash distributions exceed our investment balances until those unrecorded earnings exceed the excess distributions previously recognized in income. In this case, we will apply cost accounting concepts which tie income recognition to the receipt of cash.  Cost basis accounting concepts will apply until earnings exceed the excess distributions previously recognized in income.

We amortize the difference between the cost of our investments in the joint ventures and the book value of the underlying equity into income on a straight-line basis consistent with the lives of the underlying assets. The amortization of this difference was immaterial for the three months ended March 31, 2018 and 2017, respectively.

Capitalization of Costs

Capitalization of Costs

Direct and indirect project costs that are clearly associated with the development of properties are capitalized as incurred. Project costs include all costs directly associated with the development of a property, including construction costs, interest, property taxes, insurance, legal fees and costs of personnel working on the project. Indirect costs that do not clearly relate to the projects under development are not capitalized and are charged to expense as incurred.

Capitalization of costs begins when the activities necessary to get the development project ready for its intended use begins, which include costs incurred before the beginning of construction. Capitalization of costs ceases when the development project is substantially complete and ready for its intended use. Determining when a development project commences and when it is substantially complete and ready for its intended use involves a degree of judgment. We generally consider a development project to be substantially complete and ready for its intended use upon receipt of a certificate of occupancy. If and when development of a property is suspended pursuant to a formal change in the planned use of the property, we will evaluate whether the accumulated costs exceed the estimated value of the project and write off the amount of any such excess accumulated costs. For a development project that is suspended for reasons other than a formal change in the planned use of such property, the accumulated project costs are evaluated for impairment consistent with our impairment policies for long-lived assets. Capitalized costs are allocated to the specific components of a project that are benefited.

Goodwill

Goodwill

Goodwill represents the excess of the purchase price over the fair value of net tangible and intangible assets acquired and tangible and intangible liabilities assumed in a business combination. Goodwill is not amortized.  We perform an annual impairment test for goodwill and between annual tests, we evaluate goodwill for impairment whenever events or changes in circumstances occur that would more likely than not reduce the fair value of a reporting unit below its carrying value.  In our impairment tests of goodwill, we first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If based on this assessment, we determine that the fair value of the reporting unit is not less than its carrying value, then performing the additional two-step impairment test is unnecessary. If our qualitative

assessment indicates that goodwill impairment is more likely than not, we perform a two-step impairment test. We test goodwill for impairment under the two-step impairment test by first comparing the book value of net assets including goodwill to the fair value of the reporting unit. If the fair value is determined to be less than the book value of the net assets, including goodwill, a second step is performed to compute the amount of impairment as the difference between the implied fair value of goodwill and its carrying value. We estimate the fair value of the reporting units using discounted cash flows. If the carrying value of goodwill exceeds its implied fair value, an impairment charge is recognized. We have not recognized any goodwill impairments since our inception. Since some of the goodwill is denominated in foreign currencies, changes to the goodwill balance occur over time due to changes in foreign exchange rates.

Share-Based Compensation

Share-Based Compensation

The Company measures all share-based compensation awards at fair value on the date they are granted to employees and directors, and recognizes compensation cost, net of forfeitures, over the requisite service period for awards with only a service condition. The estimated fair value of the long-term incentive units and Class D units (discussed in Note 13) granted by us is being amortized on a straight-line basis over the expected service period.

The fair value of share-based compensation awards that contain a market condition is measured using a Monte Carlo simulation method and not adjusted based on actual achievement of the market condition.

Assets and Liabilities Measured at Fair Value

Assets and Liabilities Measured at Fair Value

Fair value under U.S. GAAP is a market-based measurement, not an entity-specific measurement. Therefore, our fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair-value measurements, we use a fair-value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).

Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or


liability which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair-value measurement is based on inputs from different levels of the fair-value hierarchy, the lowest level input that is significant would be used to determine the fair-value measurement in its entirety. Our assessment of the significance of a particular input to the fair-value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

Derivative Instruments

Derivative Instruments

Derivative financial instruments are employed to manage risks, including foreign currency and interest rate exposures and are not used for trading or speculative purposes. As part of the Company’s risk management program, a variety of financial instruments, such as interest rate swaps and foreign exchange contracts, may be used to mitigate interest rate exposure and foreign currency exposure. The Company recognizes all derivative instruments in the balance sheet at fair value.

Changes in the fair value of derivatives are recognized periodically either in earnings or in stockholders’ equity as a component of accumulated other comprehensive income (loss), depending on whether the derivative financial instrument is undesignated or qualifies for hedge accounting, and if so, whether it represents a fair value, cash flow, or net investment hedge. Gains and losses on derivatives designated as cash flow hedges, to the extent they are included in the assessment of effectiveness, are recorded in other comprehensive income (loss) and subsequently reclassified to earnings to offset the impact of the hedged items when they occur. In the event it becomes probable the forecasted transaction to which a cash flow hedge relates will not occur, the derivative would be terminated and the amount in other comprehensive income (loss) would be recognized in earnings. Changes in the fair value of derivatives that are designated and qualify as a hedge of the net investment in foreign operations, to the extent they are included in the assessment of effectiveness, are reported in other comprehensive income (loss) and are deferred until disposal of the underlying assets. Gains and losses representing components excluded from the assessment of effectiveness for cash flow and fair value hedges are recognized in earnings on a straight-line basis in the same caption as the hedged item over the term of the hedge. Gains and losses representing components excluded from the assessment of effectiveness for net investment hedges are recognized in earnings on a straight-line basis over the term of the hedge.

The net interest paid or received on interest rate swaps is recognized as interest expense. Gains and losses resulting from the early termination of interest rate swap agreements are deferred and amortized as adjustments to interest expense over the remaining period of the debt originally covered by the terminated swap.

Income Taxes

Income Taxes

Digital Realty Trust, Inc. has elected to be treated as a real estate investment trust (a “REIT”) for federal income tax purposes. As a REIT, Digital Realty Trust, Inc. generally is not required to pay federal corporate income tax to the extent taxable income is currently distributed to its stockholders. If Digital Realty Trust, Inc. fails to qualify as a REIT in any taxable year, it will be subject to federal income tax (including any applicable alternative minimum tax for taxable years prior to 2018) on its taxable income.

The Company is subject to foreign, state and local income taxes in the jurisdictions in which it conducts business. The Company’s taxable REIT subsidiaries are subject to federal, state and foreign income taxes to the extent there is taxable income. Accordingly, the Company recognizes current and deferred income taxes for its taxable REIT subsidiaries, including federal, state and non-U.S. jurisdictions, as appropriate.

We assess our significant tax positions in accordance with U.S. GAAP for all open tax years and determine whether we have any material unrecognized liabilities from uncertain tax benefits. If a tax position is not considered “more-likely-than-not” to be sustained solely on its technical merits, no benefits of the tax position are to be recognized (for financial statement purposes). As of March 31, 2018 and December 31, 2017, we had no assets or liabilities for uncertain tax positions. We classify interest and penalties from significant uncertain tax positions as interest expense and operating expense, respectively, in our condensed consolidated income statements. For the three months ended March 31, 2018 and 2017, we had no such interest or penalties. The tax year 2014 and thereafter remain open to examination by the major taxing jurisdictions with which the Company files tax returns.

Presentation of Transactional-Based Taxes

Presentation of Transactional-based Taxes

We account for transactional-based taxes, such as value added tax, or VAT, for our international properties on a net basis.

Redeemable Noncontrolling Interest

Redeemable Noncontrolling Interests

Redeemable noncontrolling interests include amounts related to partnership units issued by consolidated subsidiaries of the Company in which redemption for equity is outside the control of the Company.  Partnership units which are determined to be contingently redeemable for cash under the Financial Accounting Standards Board’s "Distinguishing Liabilities from Equity" guidance are classified as redeemable noncontrolling interests and presented in the mezzanine section between total liabilities and stockholder’s equity on the Company’s condensed consolidated balance sheets. The amounts of consolidated net income attributable to the Company and to the noncontrolling interests are presented on the Company’s condensed consolidated income statements.

Revenue Recognition

Revenue Recognition

The majority of our revenue is derived from lease arrangements, which we account for in accordance with “Leases (Topic 840)”. We account for the non-lease components within our lease arrangements, as well as other sources of revenue, in accordance with “Revenue from Contracts with Customers (Topic 606)”. Revenue recognized as a result of applying Topic 840 was 97% and Topic 606 was 3% of total operating revenue for the quarter ended March 31, 2018.

Our leases are classified as operating leases and minimum rents are recognized on a straight-line basis over the terms of the leases, which may span multiple years. The excess of rents recognized over amounts contractually due pursuant to the underlying leases is included in deferred rent in the accompanying condensed consolidated balance sheets and contractually due but unpaid rents are included in accounts and other receivables.

Tenant reimbursements for real estate taxes, common area maintenance, and other recoverable costs under our leases are recognized in the period that the expenses are incurred. Lease termination fees are recognized over the remaining term of the lease, effective as of the date the lease modification is finalized, assuming collection is not considered doubtful. As discussed above, we recognize amortization of the value of acquired above or below-market tenant leases as a reduction of rental revenue in the case of above-market leases or an increase to rental revenue in the case of below-market leases.

Interconnection services are included in rental and other services on the condensed consolidated income statements and are generally provided on a month-to-month, one-year or multi-year term. Interconnection services include port and cross-connect services. Port services are typically sold on a one-year or multi-year term and revenue is recognized on a recurring monthly basis (straight-line). The Company bills customers on a monthly basis and recognizes the revenue over the period the service is provided. Revenue for cross-connect installations is generally recognized in the period the cross-connect is installed. Interconnection services that are not specific to a particular space are accounted for under Topic 606 and have terms that are generally one year or less.

Occasionally, customers engage the Company for certain services. The nature of these services historically involves property management and construction management. The proper revenue recognition of these services can be different, depending on whether the arrangements are service revenue or contractor type revenue.

Service revenues are typically recognized on an equal monthly basis based on the minimum fee to be earned. The monthly amounts could be adjusted depending on if certain performance milestones are met.

Fee income arises primarily from contractual management agreements with entities in which we have a noncontrolling interest. The management fees are recognized as earned under the respective agreements. Management and other fee income related to partially owned noncontrolled entities are recognized to the extent attributable to the unaffiliated interest.

We make subjective estimates as to when our revenue is earned and the collectability of our accounts receivable related to minimum rent, deferred rent, expense reimbursements, lease termination fees and other income. We specifically analyze accounts receivable and historical bad debts, customer concentrations, customer creditworthiness and current economic trends when evaluating the adequacy of the allowance for bad debts. These estimates have a direct impact on our net revenue because a higher bad debt allowance would result in lower net revenue, and recognizing rental revenue as earned in one period versus another would result in higher or lower net revenue for a particular period.

Transaction and Integration Expense

Transaction and Integration Expense

Transaction and integration expense includes business combination expenses, other business development expenses and other expenses to integrate newly acquired investments, which are expensed as incurred. Transaction expenses include closing costs, broker commissions and other professional fees, including legal and accounting fees related to business combinations or acquisitions that were not consummated. Integration costs include transition costs associated with organizational restructuring (such as severance and retention payments and recruiting expenses), third-party consulting expenses directly related to the integration of acquired companies (in areas such as cost savings and synergy realization, technology and systems work), and internal costs such as training, travel and labor, reflecting time spent by Company personnel on integration activities and projects. Recurring costs are recorded in general and administrative expense.

Gains on Sale of Properties

Gains on Sale of Properties

As of January 1, 2018, we began accounting for the sale of real estate properties under Financial Accounting Standards Board, or FASB, Accounting Standards Update, or ASU, No. 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20), which provides for revenue recognition based on transfer of ownership. All properties were non-financial real estate assets and thus not businesses which were sold to noncustomers with no performance obligations subsequent to transfer of ownership

Management's Estimates

Management’s Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates made. On an on-going basis, we evaluate our estimates, including those related to the valuation of our real estate properties, tenant relationship value, goodwill, contingent consideration, accounts receivable and deferred rent receivable, performance-based equity compensation plans and the completeness of accrued liabilities. We base our estimates on historical experience, current market conditions, and various other assumptions that are believed to be reasonable under the circumstances. Actual results may vary from those estimates and those estimates could vary under different assumptions or conditions.

Segment and Geographic Information

Segment and Geographic Information

All of our properties generate similar revenues and expenses related to tenant rent and services and reimbursements and operating expenses. The sale and delivery of our products is consistent across all properties and although services are provided to a wide range of customers, the types of real estate services provided to them are standardized throughout the portfolio. As such, the properties in our portfolio have similar economic characteristics and the nature of the products and services provided to our customers and the method to distribute such services are consistent throughout the portfolio. In addition, the chief operating decision makers evaluate operating performance and make resource allocation decisions for the portfolio as a whole, rather than by property type or revenue stream. Consequently, our properties qualify for aggregation into one reporting segment.

New Accounting Pronouncements

New Accounting Pronouncements

New Accounting Standards Adopted

In August 2017, the FASB issued ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities". The new standard amends the hedge accounting recognition and presentation requirements in Accounting Standards Codification, or ASC, 815. As permitted by ASU 2017-12, the Company early adopted this standard in the first quarter of 2018 on a prospective basis. Refer to Note 2(h), Derivative Instruments, for our policy related to the adoption of this standard.

In January 2016, the FASB issued ASU No. 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities". The guidance requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and to record changes in instruments specific credit risk for financial liabilities measured under the fair value option in other comprehensive income. The principal effect of ASU 2016-01 on our condensed consolidated financial statements is that, prior to adoption of ASU 2016-01, changes in the fair values of investments in equity securities with readily determinable fair values or redemption values were recognized in other comprehensive income until realized, while under ASU 2016-01 all changes in the fair values of these equity securities are recognized in current earnings. The update is effective for fiscal years beginning after December 15, 2017, and for interim periods therein. We adopted this standard in the first quarter of 2018 and the adoption did not have a material impact on our condensed consolidated financial statements. 

In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)", and since that date has issued several additional ASUs intended to clarify certain aspects of ASU 2014-09 and to provide for certain practical expedients entities may elect upon adoption. Collectively, these ASUs outline a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers. We adopted Topic 606 in the first quarter of 2018 using the modified retrospective transition method and applied Topic 606 to those contracts that were not completed as of January 1, 2018. The results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be presented under Topic 605. Our financial statements did not recognize a material effect from the cumulative impact of adopting Topic 606 as the new accounting standard does not impact lessor accounting. Refer to Note 2(l), Revenue Recognition, for the updated policy related to the adoption of this standard.

New Accounting Standards Issued but not yet Adopted

In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)", which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Accounting for leases with a term of 12 months or less will be similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases.

ASU 2016-02 is expected to impact the Company’s consolidated financial statements for leases where the Company is a lessee, primarily for the Company’s data center operating leases, ground leases and administrative office leases, and the Company will be required to record a lease liability and a right of use asset on its condensed consolidated balance sheet at fair value upon adoption. ASU 2016-02 also limits the capitalization of leasing costs to initial direct costs, which will likely result in a reduction to our capitalized leasing costs and an increase in expenses, though the amount of such change is highly dependent upon the leasing compensation structures in place at the time of adoption.

ASU 2016-02 supersedes the previous leases standard, Leases (Topic 840). The standard is effective on January 1, 2019, with early adoption permitted. The new leasing standard requires modified retrospective transition. In March 2018, the FASB affirmed a proposed ASU that would allow entities to elect a simplified transition approach which would require applying the provisions of the new guidance at the effective date as opposed to the earliest period presented under the modified retrospective approach.

A set of practical expedients for implementation, which must be elected as a package and for all leases, may also be elected. These practical expedients include relief from re-assessing lease classification at the adoption date for expired or existing leases, although a right-of-use asset and lease liability would still be recorded for such leases. In March 2018, the FASB affirmed a proposed ASU that would include creating a practical expedient that would provide lessors an option not to separate lease and non-lease components when certain criteria are met and instead account for those components as a single component.

We will be subject to the requirements of Topic 842 as both a lessor and a lessee. We are currently assessing the method of adoption and the impact that ASU 2016-02, and any subsequent amendments, will have on our consolidated financial statements.

In January 2017, the FASB issued guidance codified in ASU Topic 2017-04, "Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". ASU 2017-04 simplifies the accounting for goodwill impairment by eliminating the process of measuring the implied value of goodwill, known as step two, from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The standard will be effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. We do not expect the provisions of ASC 2017-04 to have a material impact on our consolidated financial statements.

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Organization and Description of Business (Tables)

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Real Estate Properties

A summary of our data center portfolio as of March 31, 2018 and December 31, 2017 is as follows:

	Data Centers
	As of March 31, 2018				As of December 31, 2017
Region	Operating	Held for Sale	Unconsolidated Joint Ventures	Total	Operating	Held for Sale	Unconsolidated Joint Ventures	Total
United States	133	4	14	151	131	7	14	152
Europe	37	—	—	37	38	—	—	38
Asia	3	—	4	7	3	—	4	7
Australia	5	—	—	5	5	—	—	5
Canada	3	—	—	3	3	—	—	3
Total	181	4	18	203	180	7	18	205

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Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Schedule of Goodwill

The following is a summary of goodwill activity for the three months ended March 31, 2018 (in thousands):

	Balance as of December 31, 2017		Impact of Change in Foreign Exchange Rates		Balance as of March 31, 2018
Merger / Portfolio Acquisition
Telx Acquisition	$	330,845	$	—	$	330,845
European Portfolio Acquisition	466,604		15,515		482,119
DuPont Fabros Technology Merger	2,592,146		—		2,592,146
Total	$	3,389,595	$	15,515	$	3,405,110

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Investments in Real Estate (Tables)

3 Months Ended

Mar. 31, 2018

Real Estate [Abstract]

Schedule of Properties Sold

We sold the following real estate properties during the three months ended March 31, 2018:

Location	Metro Area	Date Sold	Gross Proceeds (in millions)		Gain (loss) on sale (in millions)
200 Quannapowitt Parkway	Boston	January 25, 2018	$	15.0	$	(0.4	)
34551 Ardenwood Boulevard	Silicon Valley	February 9, 2018	73.3		25.3
3065 Gold Camp Drive	Sacramento	March 14, 2018	14.2		5.4
11085 Sun Center Drive	Sacramento	March 14, 2018	36.8		9.1
			$	139.3	$	39.4

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Investments in Unconsolidated Joint Ventures (Tables)

3 Months Ended

Mar. 31, 2018

Equity Method Investments and Joint Ventures [Abstract]

Summary of Financial Information for Joint Ventures

The following tables present summarized financial information for our joint ventures as of March 31, 2018 and December 31, 2017 and for the three months ended March 31, 2018 and 2017 (unaudited, in thousands):

	As of March 31, 2018										Three Months Ended March 31, 2018
2018	Net Investment in Properties		Total Assets		Debt		Total Liabilities		Equity		Revenues		Property Operating Expense			Net Operating Income		Net Income
Total Unconsolidated Joint Ventures	$	1,053,058	$	1,361,412	$	726,234	$	846,918	$	514,494	$	51,731	$	(18,419	)	$	33,312	$	15,334
Our investment in and share of equity in earnings of unconsolidated joint ventures									$	167,564								$	7,410
	As of December 31, 2017										Three Months Ended March 31, 2017
2017	Net Investment in Properties		Total Assets		Debt		Total Liabilities		Equity		Revenues		Property Operating Expense			Net Operating Income		Net Income
Total Unconsolidated Joint Ventures	$	1,061,950	$	1,375,006	$	712,690	$	869,879	$	505,127	$	35,062	$	(10,391	)	$	24,671	$	11,286
Our investment in and share of equity in earnings of unconsolidated joint ventures									$	163,477								$	5,324

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Acquired Intangible Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2018

Acquired Intangible Assets And Liabilities [Abstract]

Summary of Acquired Intangible Assets

The following summarizes our acquired intangible assets (real estate intangibles, comprised of acquired in-place lease value and tenant relationship value along with acquired above-market lease value) and intangible liabilities (acquired below-market lease value) as of March 31, 2018 and December 31, 2017.

	Balance as of
(Amounts in thousands)	March 31, 2018			December 31, 2017
Real Estate Intangibles:
Acquired in-place lease value:
Gross amount	$	1,478,934		$	1,473,515
Accumulated amortization	(666,047		)	(613,948		)
Net	$	812,887		$	859,567
Tenant relationship value:
Gross amount	$	1,987,017		$	1,978,277
Accumulated amortization	(201,688		)	(169,919		)
Net	$	1,785,329		$	1,808,358
Acquired above-market leases:
Gross amount	$	285,963		$	294,514
Accumulated amortization	(120,395		)	(110,139		)
Net	$	165,568		$	184,375
Acquired below-market leases:
Gross amount	$	451,440		$	469,119
Accumulated amortization	(225,766		)	(219,654		)
Net	$	225,674		$	249,465

Schedule of Estimated Annual Amortization of Below Market Leases

Estimated annual amortization of acquired below-market leases, net of acquired above-market leases, for each of the five succeeding years and thereafter, commencing April 1, 2018 is as follows:

(Amounts in thousands)
Remainder of 2018	$	(31,936	)
2019	(15,513		)
2020	(3,145		)
2021	2,108
2022	9,118
Thereafter	99,474
Total	$	60,106

Schedule of Estimated Annual Amortization of Acquired of Intangible Assets

Estimated annual amortization of acquired in-place lease value for each of the five succeeding years and thereafter, commencing April 1, 2018 is as follows:

(Amounts in thousands)
Remainder of 2018	$	153,591
2019	148,067
2020	112,195
2021	87,579
2022	65,627
Thereafter	245,828
Total	$	812,887

Estimated annual amortization of tenant relationship value for each of the five succeeding years and thereafter, commencing April 1, 2018 is as follows:

(Amounts in thousands)
Remainder of 2018	$	110,349
2019	142,181
2020	141,799
2021	141,799
2022	141,799
Thereafter	1,107,402
Total	$	1,785,329

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Debt of the Operating Partnership (Tables) - Digital Realty Trust, L.P.

3 Months Ended

Mar. 31, 2018

Debt Instrument [Line Items]

Summary of Outstanding Indebtedness of the Operating Partnership

A summary of outstanding indebtedness of the Operating Partnership as of March 31, 2018 and December 31, 2017 is as follows (in thousands):

Indebtedness	Interest Rate at March 31, 2018		Maturity Date	Principal Outstanding at March 31, 2018				Principal Outstanding at December 31, 2017
Global revolving credit facility	Various	(1)	Jan 15, 2020	$	958,480		(2)	$	558,191		(2)
Deferred financing costs, net				(6,359		)		(7,245		)
Global revolving credit facility, net				952,121				550,946
Unsecured Term Loans
Unsecured term loan — 5-year	Various	(3)(4)	Jan 15, 2021	1,132,931			(5)	1,125,117			(5)
Unsecured term loan — 7-year	Various	(3)(4)	Jan 15, 2023	300,000			(5)	300,000			(5)
Deferred financing costs, net				(4,433		)		(4,784		)
Unsecured term loan, net				1,428,498				1,420,333
Floating rate notes due 2019	EURIBOR + 0.500%		May 22, 2019	154,050			(6)	150,063			(6)
5.875% notes due 2020	5.875%		Feb 1, 2020	500,000				500,000
3.400% notes due 2020	3.400%		Oct 1, 2020	500,000				500,000
5.250% notes due 2021	5.250%		Mar 15, 2021	400,000				400,000
3.950% notes due 2022	3.950%		Jul 1, 2022	500,000				500,000
3.625% notes due 2022	3.625%		Oct 1, 2022	300,000				300,000
2.750% notes due 2023	2.750%		Feb 1, 2023	350,000				350,000
4.750% notes due 2023	4.750%		Oct 13, 2023	420,450			(7)	405,390			(7)
2.625% notes due 2024	2.625%		Apr 15, 2024	739,440			(6)	720,300			(6)
2.750% notes due 2024	2.750%		Jul 19, 2024	350,375			(7)	337,825			(7)
4.250% notes due 2025	4.250%		Jan 17, 2025	560,600			(7)	540,520			(7)
4.750% notes due 2025	4.750%		Oct 1, 2025	450,000				450,000
3.700% notes due 2027	3.700%		Aug 15, 2027	1,000,000				1,000,000
3.300% notes due 2029	3.300%		Jul 19, 2029	490,525			(7)	472,955			(7)
Unamortized discounts				(17,978		)		(18,508		)
Total senior notes, net of discount				6,697,462				6,608,545
Deferred financing costs, net				(36,735		)		(37,788		)
Total unsecured senior notes, net of discount and deferred financing costs				6,660,727				6,570,757

Indebtedness	Interest Rate at March 31, 2018		Maturity Date	Principal Outstanding March 31, 2018			Principal Outstanding December 31, 2017
Mortgage loans:
731 East Trade Street	8.22%		Jul 1, 2020	$	2,178		$	2,370
Secured note due 2023	LIBOR + 1.100%	(4)	Mar 1, 2023	104,000			104,000
Unamortized net premiums				217			241
Total mortgage loans, including premiums				106,395			106,611
Deferred financing costs, net				(29		)	(29		)
Total mortgage loans, including premiums and net of deferred financing costs				106,366			106,582
Total indebtedness				$	9,147,712		$	8,648,618

_________________________________ 

(1) The interest rate for borrowings under the global revolving credit facility equals the applicable index plus a margin of 100 basis points, which is based on the current credit ratings of our long-term debt. An annual facility fee of 20 basis points, which is based on the credit ratings of our long-term debt, is due and payable quarterly on the total commitment amount of the facility. Twosix-month extensions are available, which we may exercise if certain conditions are met.

(2) Balances as of March 31, 2018 and December 31, 2017 are as follows (balances, in thousands):

Denomination of Draw	Balance as of March 31, 2018			Weighted-average interest rate		Balance as of December 31, 2017			Weighted-average interest rate
Floating Rate Borrowing (a)
U.S. dollar ($)	$	745,000		2.78	%	$	400,000		2.48	%
British pound sterling (£)	14,015		(c)	1.51	%	18,918		(d)	1.50	%
Euro (€)	38,204		(c)	0.62	%	31,213		(d)	0.62	%
Australian dollar (AUD)	11,672		(c)	2.77	%	—			—	%
Hong Kong dollar (HKD)	4,829		(c)	1.84	%	4,100		(d)	2.20	%
Japanese yen (JPY)	90,985		(c)	0.92	%	65,890		(d)	0.96	%
Canadian dollar (CAD)	38,775		(c)	2.60	%	23,070		(d)	2.36	%
Total	$	943,480		2.48	%	$	543,191		2.15	%
Base Rate Borrowing (b)
U.S. dollar ($)	$	15,000		4.75	%	$	15,000		4.50	%
Total borrowings	$	958,480		2.52	%	$	558,191		2.21	%

(a) The interest rates for floating rate borrowings under the global revolving credit facility equal the applicable index plus a margin of 100 basis points, which is based on the credit ratings of our long-term debt.

(b) The interest rates for base rate borrowings under the global revolving credit facility equal the U.S. Prime Rate.

(c) Based on exchange rates of $1.40 to £1.00, $1.23 to €1.00, $0.77 to 1.00 AUD, $0.13 to 1.00 HKD, $0.01 to 1.00 JPY and $0.78 to 1.00 CAD, respectively, as of March 31, 2018.

(d) Based on exchange rates of $1.35 to £1.00, $1.20 to €1.00, $0.13 to 1.00 HKD, $0.01 to 1.00 JPY and $0.80 to 1.00 CAD, respectively, as of December 31, 2017.

(3) Interest rates are based on our current senior unsecured debt ratings and are 110 basis points and 155 basis points over the applicable index for floating rate advances for the 5-Year Term Loan and the 7-Year Term Loan, respectively.

(4) We have entered into interest rate swap agreements as a cash flow hedge for interest generated by the U.S. dollar, British pound sterling and Canadian dollar tranches of the unsecured term loans and the secured note due 2023. See Note 14 "Derivative Instruments" for further information.

(5) Balances as of March 31, 2018 and December 31, 2017 are as follows (balances, in thousands):

Denomination of Draw	Balance as of March 31, 2018			Weighted-average interest rate			Balance as of December 31, 2017			Weighted-average interest rate
U.S. dollar ($)	$	606,911		3.08	%	(b)	$	606,911		2.78	%	(d)
British pound sterling (£)	237,519		(a)	1.60	%	(b)	229,011		(c)	1.59	%	(d)
Singapore dollar (SGD)	238,129		(a)	2.21	%		233,788		(c)	2.17	%
Australian dollar (AUD)	176,847		(a)	2.88	%		179,841		(c)	2.79	%
Hong Kong dollar (HKD)	85,001		(a)	1.85	%		85,762		(c)	2.20	%
Canadian dollar (CAD)	76,387		(a)	2.70	%	(b)	78,357		(c)	2.44	%	(d)
Japanese yen (JPY)	12,137		(a)	1.02	%		11,447		(c)	1.05	%
Total	$	1,432,931		2.55	%	(b)	$	1,425,117		2.42	%	(d)

(a) Based on exchange rates of $1.40 to £1.00, $0.76 to 1.00 SGD, $0.77 to 1.00 AUD, $0.13 to 1.00 HKD, $0.78 to 1.00 CAD and $0.01 to 1.00 JPY, respectively, as of March 31, 2018.

(b) As of March 31, 2018, the weighted-average interest rate reflecting interest rate swaps was 2.72% (U.S. dollar), 1.89% (British pound sterling), 1.88% (Canadian dollar) and 2.41% (Total). See Note 14 "Derivative Instruments" for further discussion on interest rate swaps.

(c) Based on exchange rates of $1.35 to £1.00, $0.75 to 1.00 SGD, $0.78 to 1.00 AUD,$0.13 to 1.00 HKD, $0.80 to 1.00 CAD and $0.01 to 1.00 JPY, respectively, as of December 31, 2017.

(d) As of December 31, 2017, the weighted-average interest rate reflecting interest rate swaps was 2.72% (U.S. dollar), 1.89% (British pound sterling), 1.88% (Canadian dollar) and 2.41% (Total).

(6) Based on exchange rates of $1.23 to €1.00 as of March 31, 2018 and $1.20 to €1.00 as of December 31, 2017.

(7) Based on exchange rates of $1.40 to £1.00 as of March 31, 2018 and $1.35 to £1.00 as of December 31, 2017.

Schedule of Debt Maturities and Principal Maturities

The table below summarizes our debt maturities and principal payments as of March 31, 2018 (in thousands):

	Global Revolving Credit Facility(1)		Unsecured Term Loans		Unsecured Senior Notes			Mortgage Loans		Total Debt
Remainder of 2018	$	—	$	—	$	—		$	401	$	401
2019	—		—		154,050			644		154,694
2020	958,480		—		1,000,000			1,133		1,959,613
2021	—		1,132,931		400,000			—		1,532,931
2022	—		—		800,000			—		800,000
Thereafter	—		300,000		4,361,390			104,000		4,765,390
Subtotal	$	958,480	$	1,432,931	$	6,715,440		$	106,178	$	9,213,029
Unamortized discount	—		—		(17,978		)	—		(17,978		)
Unamortized premium	—		—		—			217		217
Total	$	958,480	$	1,432,931	$	6,697,462		$	106,395	$	9,195,268

(1) Subject to twosix-month extension options exercisable by us. The bank group is obligated to grant the extension options provided we give proper notice, we make certain representations and warranties and no default exists under the global revolving credit facility.

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Income per Share (Tables)

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Summary of Basic and Diluted Earnings Per Share

The following is a summary of basic and diluted income per share (in thousands, except share and per share amounts):

	Three Months Ended March 31,
	2018		2017
Net income available to common stockholders	$	86,298	$	66,145
Weighted average shares outstanding—basic	205,714,173		159,297,027
Potentially dilutive common shares:
Stock options	—		4
Unvested incentive units	302,016		237,336
Forward equity offering	—		283,388
Market performance-based awards	491,287		603,900
Weighted average shares outstanding—diluted	206,507,476		160,421,655
Income per share:
Basic	$	0.42	$	0.42
Diluted	$	0.42	$	0.41

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

We have excluded the following potentially dilutive securities in the calculations above as they would be antidilutive or not dilutive:

	Three Months Ended March 31,
	2018	2017
Weighted average of Operating Partnership common units not owned by Digital Realty Trust, Inc.	8,295,287	2,177,874
Potentially dilutive Series C Cumulative Redeemable Perpetual Preferred Stock	1,967,430	—
Potentially dilutive Series F Cumulative Redeemable Preferred Stock	—	1,783,083
Potentially dilutive Series G Cumulative Redeemable Preferred Stock	2,439,505	2,438,074
Potentially dilutive Series H Cumulative Redeemable Preferred Stock	3,574,840	3,572,744
Potentially dilutive Series I Cumulative Redeemable Preferred Stock	2,442,359	2,440,928
Potentially dilutive Series J Cumulative Redeemable Preferred Stock	1,948,598	—
Total	20,668,019	12,412,703

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Income per Unit (Tables)

3 Months Ended

Mar. 31, 2018

Class of Stock [Line Items]

Summary of Basic and Diluted Earnings Per Share

The following is a summary of basic and diluted income per share (in thousands, except share and per share amounts):

	Three Months Ended March 31,
	2018		2017
Net income available to common stockholders	$	86,298	$	66,145
Weighted average shares outstanding—basic	205,714,173		159,297,027
Potentially dilutive common shares:
Stock options	—		4
Unvested incentive units	302,016		237,336
Forward equity offering	—		283,388
Market performance-based awards	491,287		603,900
Weighted average shares outstanding—diluted	206,507,476		160,421,655
Income per share:
Basic	$	0.42	$	0.42
Diluted	$	0.42	$	0.41

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

We have excluded the following potentially dilutive securities in the calculations above as they would be antidilutive or not dilutive:

	Three Months Ended March 31,
	2018	2017
Weighted average of Operating Partnership common units not owned by Digital Realty Trust, Inc.	8,295,287	2,177,874
Potentially dilutive Series C Cumulative Redeemable Perpetual Preferred Stock	1,967,430	—
Potentially dilutive Series F Cumulative Redeemable Preferred Stock	—	1,783,083
Potentially dilutive Series G Cumulative Redeemable Preferred Stock	2,439,505	2,438,074
Potentially dilutive Series H Cumulative Redeemable Preferred Stock	3,574,840	3,572,744
Potentially dilutive Series I Cumulative Redeemable Preferred Stock	2,442,359	2,440,928
Potentially dilutive Series J Cumulative Redeemable Preferred Stock	1,948,598	—
Total	20,668,019	12,412,703

Digital Realty Trust, L.P.

Class of Stock [Line Items]

Summary of Basic and Diluted Earnings Per Share

The following is a summary of basic and diluted income per unit (in thousands, except unit and per unit amounts):

	Three Months Ended March 31,
	2018		2017
Net income available to common unitholders	$	89,778	$	67,049
Weighted average units outstanding—basic	214,009,460		161,474,901
Potentially dilutive common units:
Stock options	—		4
Unvested incentive units	302,016		237,336
Forward equity offering	—		283,388
Market performance-based awards	491,287		603,900
Weighted average units outstanding—diluted	214,802,763		162,599,529
Income per unit:
Basic	$	0.42	$	0.42
Diluted	$	0.42	$	0.41

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

We have excluded the following potentially dilutive securities in the calculations above as they would be antidilutive or not dilutive:

	Three Months Ended March 31,
	2018	2017
Potentially dilutive Series C Cumulative Redeemable Perpetual Preferred Units	1,967,430	—
Potentially dilutive Series F Cumulative Redeemable Preferred Units	—	1,783,083
Potentially dilutive Series G Cumulative Redeemable Preferred Units	2,439,505	2,438,074
Potentially dilutive Series H Cumulative Redeemable Preferred Units	3,574,840	3,572,744
Potentially dilutive Series I Cumulative Redeemable Preferred Units	2,442,359	2,440,928
Potentially dilutive Series J Cumulative Redeemable Preferred Units	1,948,598	—
Total	12,372,732	10,234,829

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Equity and Accumulated Other Comprehensive Loss, Net (Tables)

3 Months Ended

Mar. 31, 2018

Equity [Abstract]

Ownership Interest In The Operating Partnership

The following table shows the ownership interests in the Operating Partnership as of March 31, 2018 and December 31, 2017:

	March 31, 2018			December 31, 2017
	Number of units	Percentage of total		Number of units	Percentage of total
Digital Realty Trust, Inc.	205,874,914	95.9	%	205,470,300	96.0	%
Noncontrolling interests consist of:
Common units held by third parties	6,730,727	3.2	%	6,899,094	3.2	%
Incentive units held by employees and directors (see Note 14)	2,005,761	0.9	%	1,590,001	0.8	%
	214,611,402	100.0	%	213,959,395	100.0	%

Summary of Activity for Noncontrolling Interests in the Operating Partnership

The following table shows activity for the noncontrolling interests in the Operating Partnership for the three months ended March 31, 2018:

	Common Units		Incentive Units		Total
As of December 31, 2017	6,899,094		1,590,001		8,489,095
Redemption of common units for shares of Digital Realty Trust, Inc. common stock (1)	(168,367	)	—		(168,367	)
Incentive units issued upon achievement of market performance condition	—		326,947		326,947
Grant of incentive units to employees and directors	—		95,592		95,592
Cancellation / forfeitures of incentive units held by employees and directors	—		(6,779	)	(6,779	)
As of March 31, 2018	6,730,727		2,005,761		8,736,488

(1) Redemption of common units were recorded as a reduction to noncontrolling interests in the Operating Partnership and an increase to common stock and additional paid in capital based on the book value per unit in the accompanying condensed consolidated balance sheet of Digital Realty Trust, Inc.

Schedule of Dividends

We have declared and paid the following dividends on our common and preferred stock for the three months ended March 31, 2018 (in thousands, except per share data):

Date dividend declared	Dividend payment date	Series C Preferred Stock		Series G Preferred Stock		Series H Preferred Stock		Series I Preferred Stock		Series J Preferred Stock		Common Stock
March 1, 2018	March 30, 2018	$	3,333	$	3,672	$	6,730	$	3,969	$	2,625	$	208,015
Annual rate of dividend per share		$	1.65625	$	1.46875	$	1.84375	$	1.58750	$	1.31250	$	4.04000

Schedule of Accumulated Other Comprehensive Income, Net

The accumulated balances for each item within other comprehensive income (loss), net are as follows (in thousands):

	Foreign currency translation adjustments			Cash flow hedge adjustments			Foreign currency net investment hedge adjustments		Accumulated other comprehensive  income (loss), net
Balance as of December 31, 2017	$	(147,370	)	$	13,200		$	25,738	$	(108,432	)
Net current period change	(3,598		)	8,282			—		4,684
Reclassification to interest expense from interest rate swaps	—			(226		)	—		(226		)
Balance as of March 31, 2018	$	(150,968	)	$	21,256		$	25,738	$	(103,974	)

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Capital and Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Mar. 31, 2018

Class of Stock [Line Items]

Schedule of Distributions

We have declared and paid the following dividends on our common and preferred stock for the three months ended March 31, 2018 (in thousands, except per share data):

Date dividend declared	Dividend payment date	Series C Preferred Stock		Series G Preferred Stock		Series H Preferred Stock		Series I Preferred Stock		Series J Preferred Stock		Common Stock
March 1, 2018	March 30, 2018	$	3,333	$	3,672	$	6,730	$	3,969	$	2,625	$	208,015
Annual rate of dividend per share		$	1.65625	$	1.46875	$	1.84375	$	1.58750	$	1.31250	$	4.04000

Schedule of Accumulated Other Comprehensive Income, Net

The accumulated balances for each item within other comprehensive income (loss), net are as follows (in thousands):

	Foreign currency translation adjustments			Cash flow hedge adjustments			Foreign currency net investment hedge adjustments		Accumulated other comprehensive  income (loss), net
Balance as of December 31, 2017	$	(147,370	)	$	13,200		$	25,738	$	(108,432	)
Net current period change	(3,598		)	8,282			—		4,684
Reclassification to interest expense from interest rate swaps	—			(226		)	—		(226		)
Balance as of March 31, 2018	$	(150,968	)	$	21,256		$	25,738	$	(103,974	)

Digital Realty Trust, L.P.

Class of Stock [Line Items]

Schedule of Distributions

The Operating Partnership has declared and paid the following distributions on its common and preferred units for the three months ended March 31, 2018 (in thousands, except for per unit data):

Date distribution declared	Distribution payment date	Series C Preferred Units		Series G Preferred Units		Series H Preferred Units		Series I Preferred Units		Series J Preferred Units		Common Units
March 1, 2018	March 30, 2018	$	3,333	$	3,672	$	6,730	$	3,969	$	2,625	$	216,953
Annual rate of distribution per unit		$	1.65625	$	1.46875	$	1.84375	$	1.58750	$	1.31250	$	4.04000

Schedule of Accumulated Other Comprehensive Income, Net

The accumulated balances for each item within other comprehensive income are as follows (in thousands):

	Foreign currency translation adjustments			Cash flow hedge adjustments			Foreign currency net investment hedge adjustments		Accumulated other comprehensive loss
Balance as of December 31, 2017	$	(151,795	)	$	12,758		$	26,152	$	(112,885	)
Net current period change	(3,743		)	8,616			—		4,873
Reclassification to interest expense from interest rate swaps	—			(235		)	—		(235		)
Balance as of March 31, 2018	$	(155,538	)	$	21,139		$	26,152	$	(108,247	)

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Incentive Plan (Tables)

3 Months Ended

Mar. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Deferred Compensation

Below is a summary of our compensation expense for the three months ended March 31, 2018 and 2017 and our unearned compensation as of March 31, 2018 and December 31, 2017 (in millions):

	Deferred Compensation								Unearned Compensation				Expected period to recognize unearned compensation (in years)
	Expensed				Capitalized				As of March 31, 2018		As of December 31, 2017
	Three Months Ended March 31,
Type of incentive award	2018		2017		2018		2017
Long-term incentive units	$	0.9	$	0.7	$	0.2	$	0.4	$	15.0	$	6.9	3.2
Market performance-based awards	3.1		2.1		0.3		0.7		44.7		24.7		2.6
Restricted stock	1.5		1.0		1.1		0.8		30.5		17.5		3.2

Summary of Long-Term Incentive Unit Activity

Below is a summary of our long-term incentive unit activity for the three months ended March 31, 2018.

Unvested Long-term Incentive Units	Units		Weighted-Average Grant Date Fair Value
Unvested, beginning of period	99,295		$	90.59
Granted	92,361		99.01
Vested	(16,313	)	100.18
Unvested, end of period	175,343		$	94.13

Market Performance Based Awards

In the event that the RMS Relative Market Performance during the Market Performance Period is achieved at the “threshold,” “target” or “high” level as set forth below, the awards will become vested as to the market condition with respect to the percentage of Class D units or RSUs, as applicable, set forth below:

Level	RMS Relative Market Performance	Market Performance Vesting Percentage
Below Threshold Level	≤ -300 basis points	0%
Threshold Level	-300 basis points	25%
Target Level	100 basis points	50%
High Level	> 500 basis points	100%

Schedule Of Valuation Assumptions

Assumptions used in the valuations are summarized as follows:

Award Date	Expected Stock Price Volatility	Risk-Free Interest rate
January 1, 2017	25%	1.49%
February 28, 2017	23%	1.43%
January 1, 2018	22%	1.98%
March 1, 2018	22%	2.34%
March 9, 2018	22%	2.42%

Summary of Restricted Stock Activity

Below is a summary of our restricted stock activity for the three months ended March 31, 2018.

Unvested Restricted Stock	Shares		Weighted-Average Grant Date Fair Value
Unvested, beginning of period	259,422		$	90.54
Granted	154,647		99.34
Vested	(80,614	)	81.99
Unvested, end of period	333,455		$	96.64

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Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Outstanding Derivative Instruments

As of March 31, 2018 and December 31, 2017, we had the following outstanding interest rate derivatives that were designated as effective cash flow hedges of interest rate risk (in thousands):

Notional Amount										Fair Value at Significant Other Observable Inputs (Level 2)
As of March 31, 2018			As of December 31, 2017			Type of Derivative	Strike Rate	Effective Date	Expiration Date	As of March 31, 2018 (5)		As of December 31, 2017(5)
Currently-paying contracts
$	206,000	(1)	$	206,000		Swap	1.611	Jun 15, 2017	Jan 15, 2020	$	2,551	$	1,409
54,905		(1)	54,905			Swap	1.605	Jun 6, 2017	Jan 6, 2020	673		374
75,000		(1)	75,000		(1)	Swap	1.016	Apr 6, 2016	Jan 6, 2021	2,862		2,260
75,000		(1)	75,000		(1)	Swap	1.164	Jan 15, 2016	Jan 15, 2021	2,583		1,947
300,000		(2)	300,000		(2)	Swap	1.435	Jan 15, 2016	Jan 15, 2023	15,001		9,978
237,519		(3)	229,012		(3)	Swap	0.792	Jan 15, 2016	Jan 15, 2019	9		(430		)
76,387		(4)	78,357		(4)	Swap	0.779	Jan 15, 2016	Jan 15, 2021	2,972		3,034
$	1,024,811		$	1,018,274						$	26,651	$	18,572

(1) Represents portions of the U.S. dollar tranche of the 5-Year Term Loan.

(2) Represents the U.S. dollar tranche of the 7-Year Term Loan.

(3) Represents the British pound sterling tranche of the 5-Year Term Loan. Translation to U.S. dollars is based on exchange rates of $1.40 to £1.00 as of March 31, 2018 and $1.35 to £1.00 as of December 31, 2017.

(4) Represents the Canadian dollar tranche of the 5-Year Term Loan. Translation to U.S. dollars is based on exchange rates of $0.78 to 1.00 CAD as of March 31, 2018 and $0.80 to 1.00 CAD as of December 31, 2017.

(5) Balance recorded in other assets in the consolidated balance sheets if positive and recorded in accounts payable and other accrued liabilities in the consolidated balance sheets if negative.

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Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Estimated Fair Value And Carrying Amounts

As of March 31, 2018 and December 31, 2017, the aggregate estimated fair value and carrying value of our global revolving credit facility, unsecured term loans, unsecured senior notes and mortgage loans were as follows (in thousands):

	Categorization under the fair value hierarchy	As of March 31, 2018				As of December 31, 2017
		Estimated Fair Value		Carrying Value		Estimated Fair Value		Carrying Value
Global revolving credit facility (1)(5)	Level 2	$	958,480	$	958,480	$	558,191	$	558,191
Unsecured term loans (2)(6)	Level 2	1,432,931		1,432,931		1,425,117		1,425,117
Unsecured senior notes (3)(4)(7)	Level 2	6,907,183		6,697,462		6,976,603		6,608,545
Mortgage loans (3)(8)	Level 2	106,346		106,395		106,523		106,611
		$	9,404,940	$	9,195,268	$	9,066,434	$	8,698,464

(1) The carrying value of our global revolving credit facility approximates estimated fair value, due to the variability of interest rates and the stability of our credit ratings.

(2) The carrying value of our unsecured term loans approximates estimated fair value, due to the variability of interest rates and the stability of our credit ratings.

(3) Valuations for our unsecured senior notes and mortgage loans are determined based on the expected future payments discounted at risk-adjusted rates. The 2019 Notes, 5.875% 2020 Notes, 3.400% 2020 Notes, 2021 Notes, 3.950% 2022 Notes, 3.625% 2022 Notes, 4.750% 2023 Notes, 2.750% 2023 Notes, 2.625% 2024 Notes, 2.750% 2024 Notes, 4.750% 2025 Notes, 4.250% 2025 Notes, 2027 Notes and 2029 Notes are valued based on quoted market prices.

(4) The carrying value of the 5.875% 2020 Notes, 3.400% 2020 Notes, 2021 Notes, 3.625% 2022 Notes, 3.950% 2022 Notes, 4.750% 2023 Notes, 2.750% 2023 Notes, 2.625% 2024 Notes, 2.750% 2024 Notes, 4.250% 2025 Notes, 2027 Notes and 2029 Notes are net of discount of $18.0 million and $18.5 million in the aggregate as of March 31, 2018 and December 31, 2017, respectively.

(5) The estimated fair value and carrying value are exclusive of deferred financing costs of $6.4 million and $7.2 million as of March 31, 2018 and December 31, 2017, respectively.

(6) The estimated fair value and carrying value are exclusive of deferred financing costs of $4.4 million and $4.8 million as of March 31, 2018 and December 31, 2017, respectively.

(7) The estimated fair value and carrying value are exclusive of deferred financing costs of $36.7 million and $37.8 million as of March 31, 2018 and December 31, 2017, respectively.

(8) The estimated fair value and carrying value are exclusive of deferred financing costs of $0.0 million and $0.0 million as of March 31, 2018 and December 31, 2017, respectively.

XML

Organization and Description of Business (Narrative) (Details) - property	Mar. 31, 2018	Dec. 31, 2017
Organization and Description of Business [Line Items]
Number of properties	203	205
Common Interest
Organization and Description of Business [Line Items]
Ownership percentage in the Operating Partnership	95.90%	96.00%
Preferred Interest
Organization and Description of Business [Line Items]
Ownership percentage in the Operating Partnership	100.00%	100.00%
United States
Organization and Description of Business [Line Items]
Number of properties	151	152
Europe
Organization and Description of Business [Line Items]
Number of properties	37	38
Asia
Organization and Description of Business [Line Items]
Number of properties	7	7
Australia
Organization and Description of Business [Line Items]
Number of properties	5	5
Canada
Organization and Description of Business [Line Items]
Number of properties	3	3
Operating Properties
Organization and Description of Business [Line Items]
Number of properties	181	180
Operating Properties | United States
Organization and Description of Business [Line Items]
Number of properties	133	131
Operating Properties | Europe
Organization and Description of Business [Line Items]
Number of properties	37	38
Operating Properties | Asia
Organization and Description of Business [Line Items]
Number of properties	3	3
Operating Properties | Australia
Organization and Description of Business [Line Items]
Number of properties	5	5
Operating Properties | Canada
Organization and Description of Business [Line Items]
Number of properties	3	3
Held-for-Sale Properties
Organization and Description of Business [Line Items]
Number of properties	4	7
Held-for-Sale Properties | United States
Organization and Description of Business [Line Items]
Number of properties	4	7
Held-for-Sale Properties | Europe
Organization and Description of Business [Line Items]
Number of properties	0	0
Held-for-Sale Properties | Asia
Organization and Description of Business [Line Items]
Number of properties	0	0
Held-for-Sale Properties | Australia
Organization and Description of Business [Line Items]
Number of properties	0	0
Held-for-Sale Properties | Canada
Organization and Description of Business [Line Items]
Number of properties	0	0
Unconsolidated Joint Ventures
Organization and Description of Business [Line Items]
Number of properties	18	18
Unconsolidated Joint Ventures | United States
Organization and Description of Business [Line Items]
Number of properties	14	14
Unconsolidated Joint Ventures | Europe
Organization and Description of Business [Line Items]
Number of properties	0	0
Unconsolidated Joint Ventures | Asia
Organization and Description of Business [Line Items]
Number of properties	4	4
Unconsolidated Joint Ventures | Australia
Organization and Description of Business [Line Items]
Number of properties	0	0
Unconsolidated Joint Ventures | Canada
Organization and Description of Business [Line Items]
Number of properties	0	0

XML

Summary of Significant Accounting Policies (Narrative) (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2018 USD ($) segment	Mar. 31, 2017 USD ($)	Dec. 31, 2017 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Period in which short-term investment become cash equivalents	90 days
Interest capitalized	$ 7,400,000	$ 4,600,000
Compensation costs, leasing and construction activities	18,300,000	18,700,000
Cash flows from capitalized leasing costs	2,300,000	3,200,000
Impact of Change in Foreign Exchange Rates	15,515,000
Unrecognized tax benefits	0		$ 0
Income tax penalties and interest expense	$ 0	0
Revenue recognized from applying Topic 840	97.00%
Revenue recognized from applying Topic 606	3.00%
Gross proceeds	$ 139,300,000
Gain on sale of property	$ 39,400,000
Number of reportable segments | segment	1
Total operating revenues	$ 744,368,000	$ 550,569,000
Net investments in real estate	$ 14,089,926,000		$ 13,841,186,000
Sales | Geographic Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Concentration risk	10.10%	11.80%
Total long-lived assets
Summary Of Significant Accounting Policies [Line Items]
Concentration risk			12.10%
Total long-lived assets | Geographic Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Concentration risk	12.80%
Outside the United States
Summary Of Significant Accounting Policies [Line Items]
Total operating revenues	$ 140,900,000	$ 121,400,000
Net investments in real estate	3,300,000,000		$ 3,100,000,000
United States
Summary Of Significant Accounting Policies [Line Items]
Total operating revenues	603,500,000	429,100,000
Net investments in real estate	10,600,000,000		10,500,000,000
United Kingdom
Summary Of Significant Accounting Policies [Line Items]
Total operating revenues	75,200,000	$ 65,200,000
Net investments in real estate	$ 1,800,000,000		$ 1,700,000,000

XML

Summary of Significant Accounting Policies Summary of Goodwill Activity (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Goodwill [Roll Forward]
Goodwill - Beginning Balance	$ 3,389,595
Impact of Change in Foreign Exchange Rates	15,515
Goodwill - Ending Balance	3,405,110
Telx Acquisition
Goodwill [Roll Forward]
Goodwill - Beginning Balance	330,845
Impact of Change in Foreign Exchange Rates	0
Goodwill - Ending Balance	330,845
European Portfolio Acquisition
Goodwill [Roll Forward]
Goodwill - Beginning Balance	466,604
Impact of Change in Foreign Exchange Rates	15,515
Goodwill - Ending Balance	482,119
DFT Company
Goodwill [Roll Forward]
Goodwill - Beginning Balance	2,592,146
Impact of Change in Foreign Exchange Rates	0
Goodwill - Ending Balance	$ 2,592,146

XML

Investments in Real Estate (Schedule of Real Estate Property Acquisitions) (Details) $ in Thousands				3 Months Ended
	Mar. 14, 2018 USD ($)	Feb. 09, 2018 USD ($)	Jan. 25, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($) property	Apr. 19, 2018 USD ($)	Dec. 31, 2017 USD ($) property
Business Acquisition [Line Items]
Number of properties | property					203		205
Assets					$ 21,581,917		$ 21,404,345
Liabilities					10,595,502		$ 10,300,993
Gross proceeds					139,300
Gain (loss) on sale of property					$ 39,400
Held-for-sale
Business Acquisition [Line Items]
Number of additional properties | property					4		8
Number of properties | property					4
Assets					$ 41,700		$ 139,500
Liabilities					$ 1,800		$ 5,000
200 Quannapowitt Parkway
Business Acquisition [Line Items]
Gross proceeds			$ 15,000
Gain (loss) on sale of property			$ (400)
34551 Ardenwood Boulevard
Business Acquisition [Line Items]
Gross proceeds		$ 73,300
Gain (loss) on sale of property		$ 25,300
3065 Gold Camp Drive
Business Acquisition [Line Items]
Gross proceeds	$ 14,200
Gain (loss) on sale of property	5,400
11085 Sun Center Drive
Business Acquisition [Line Items]
Gross proceeds	36,800
Gain (loss) on sale of property	$ 9,100
Scenario, Forecast | Property in Austin, Texas | Disposal Group
Business Acquisition [Line Items]
Gain (loss) on sale of property				$ 12,000
Subsequent Event | Property in Austin, Texas | Disposal Group
Business Acquisition [Line Items]
Transaction value on sale of property						$ 48,000

XML

Investments in Unconsolidated Joint Ventures (Narrative) (Details)	3 Months Ended
	Mar. 31, 2018 property joint_venture	Dec. 31, 2017 property
Schedule of Equity Method Investments [Line Items]
Number of properties | property	203	205
Properties in Seattle, Hong Kong, Tokyo, Osaka
Schedule of Equity Method Investments [Line Items]
Ownership percentage in joint ventures	50.00%
Number of joint ventures | joint_venture	4
Prudential Real Estate Investors and Griffin Capital Essential Asset REIT, Inc.
Schedule of Equity Method Investments [Line Items]
Number of joint ventures | joint_venture	2
PREI
Schedule of Equity Method Investments [Line Items]
Ownership percentage in joint ventures	20.00%
Number of joint ventures | joint_venture	1
Number of properties | property	10
GCEAR
Schedule of Equity Method Investments [Line Items]
Number of properties | property	1
Property in Silicon Valley
Schedule of Equity Method Investments [Line Items]
Ownership percentage in joint ventures	17.00%

XML

Investments in Unconsolidated Joint Ventures (Summary Of Financial Information For Joint Ventures) (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Equity Method Investments and Joint Ventures [Abstract]
Net Investment in Properties	$ 1,053,058		$ 1,061,950
Total Assets	1,361,412		1,375,006
Debt	726,234		712,690
Total Liabilities	846,918		869,879
Equity	514,494		505,127
Our investment in and share of equity in earnings of unconsolidated joint ventures	167,564		$ 163,477
Revenues	51,731	$ 35,062
Property Operating Expense	(18,419)	(10,391)
Net Operating Income	33,312	24,671
Net Income	15,334	11,286
Investment in and share of net income (loss)	$ 7,410	$ 5,324

XML

Acquired Intangible Assets and Liabilities (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Amortization of below market leases	$ (6,900)	$ (2,000)
Expected average remaining lives of acquired below market leases (in years)	8 years 7 months 16 days
Amortization of acquired in-place lease value and deferred leasing costs	$ 108,358	44,659
Acquired in-place lease value
Finite-Lived Intangible Assets [Line Items]
Expected average remaining lives (in years)	6 years 5 months
Amortization of acquired in-place lease value and deferred leasing costs	$ 57,000	14,200
Weighted average remaining contractual life for acquired leases excluding renewals or extensions (in years)	6 years 1 month 15 days
Tenant relationship value
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired in-place lease value and deferred leasing costs	$ 31,000	$ 17,600
Weighted average remaining contractual life for acquired leases excluding renewals or extensions (in years)	15 years 7 days
Acquired above-market leases
Finite-Lived Intangible Assets [Line Items]
Expected average remaining lives (in years)	3 years 6 months

XML

Acquired Intangible Assets and Liabilities (Summary of Acquired Intangible Assets) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Below-market lease, gross amount	$ 451,440	$ 469,119
Below-market lease, accumulated amortization	(225,766)	(219,654)
Total	225,674	249,465
Acquired in-place lease value
Finite-Lived Intangible Assets [Line Items]
Gross amount	1,478,934	1,473,515
Accumulated amortization	(666,047)	(613,948)
Net	812,887	859,567
Tenant relationship value
Finite-Lived Intangible Assets [Line Items]
Gross amount	1,987,017	1,978,277
Accumulated amortization	(201,688)	(169,919)
Net	1,785,329	1,808,358
Acquired above-market leases
Finite-Lived Intangible Assets [Line Items]
Gross amount	285,963	294,514
Accumulated amortization	(120,395)	(110,139)
Net	$ 165,568	$ 184,375

XML

Acquired Intangible Assets and Liabilities (Schedule of Estimated Annual Amortization of Below Market Leases) (Details) - Below-Market Leases, Net of Above-Market Leases $ in Thousands	Mar. 31, 2018 USD ($)
Finite-Lived Intangible Assets [Line Items]
Remainder of 2018	$ (31,936)
2019	(15,513)
2020	(3,145)
2021	2,108
2022	9,118
Thereafter	99,474
Total	$ 60,106

XML

Acquired Intangible Assets And Liabilities (Schedule of Estimated Annual Amortization of Intangible Assets) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Acquired in-place lease value
Finite-Lived Intangible Assets [Line Items]
Remainder of 2018	$ 153,591
2019	148,067
2020	112,195
2021	87,579
2022	65,627
Thereafter	245,828
Net	812,887	$ 859,567
Tenant relationships
Finite-Lived Intangible Assets [Line Items]
Remainder of 2018	110,349
2019	142,181
2020	141,799
2021	141,799
2022	141,799
Thereafter	1,107,402
Net	$ 1,785,329

XML

Debt of the Company (Narrative) (Details)	Mar. 31, 2018
3.400% notes due 2020
Debt Instrument [Line Items]
Stated interest rate	3.40%
3.950% notes due 2022
Debt Instrument [Line Items]
Stated interest rate	3.95%
3.625% notes due 2022
Debt Instrument [Line Items]
Stated interest rate	3.625%
4.750% notes due 2025
Debt Instrument [Line Items]
Stated interest rate	4.75%
2.750% notes due 2024
Debt Instrument [Line Items]
Stated interest rate	2.75%
2.625% notes due 2024
Debt Instrument [Line Items]
Stated interest rate	2.625%
Senior Notes | 5.875% notes due 2020
Debt Instrument [Line Items]
Stated interest rate	5.875%
Senior Notes | 3.400% notes due 2020
Debt Instrument [Line Items]
Stated interest rate	3.40%
Senior Notes | 5.250% notes due 2021
Debt Instrument [Line Items]
Stated interest rate	5.25%
Senior Notes | 3.950% notes due 2022
Debt Instrument [Line Items]
Stated interest rate	3.95%
Senior Notes | 3.625% notes due 2022
Debt Instrument [Line Items]
Stated interest rate	3.625%
Senior Notes | 2.750% notes due 2023
Debt Instrument [Line Items]
Stated interest rate	2.75%
Senior Notes | 4.750% notes due 2025
Debt Instrument [Line Items]
Stated interest rate	4.75%
Senior Notes | 3.700% notes due 2027
Debt Instrument [Line Items]
Stated interest rate	3.70%
Senior Notes | 4.750% notes due 2023
Debt Instrument [Line Items]
Stated interest rate	4.75%
Senior Notes | 2.750% notes due 2024
Debt Instrument [Line Items]
Stated interest rate	2.75%
Senior Notes | 4.250% notes due 2025
Debt Instrument [Line Items]
Stated interest rate	4.25%
Senior Notes | 3.300% notes due 2029
Debt Instrument [Line Items]
Stated interest rate	3.30%
Senior Notes | 2.625% notes due 2024
Debt Instrument [Line Items]
Stated interest rate	2.625%

XML

Debt of the Operating Partnership (Summary of Outstanding Indebtedness) (Details) $ in Thousands		3 Months Ended
	Jan. 15, 2016 extension	Mar. 31, 2018 USD ($) $ / € $ / £	Dec. 31, 2017 USD ($) $ / € $ / £
3.950% notes due 2022
Debt Instrument [Line Items]
Stated interest rate		3.95%
3.625% notes due 2022
Debt Instrument [Line Items]
Stated interest rate		3.625%
2.625% notes due 2024
Debt Instrument [Line Items]
Stated interest rate		2.625%
2.750% notes due 2024
Debt Instrument [Line Items]
Stated interest rate		2.75%
4.750% notes due 2025
Debt Instrument [Line Items]
Stated interest rate		4.75%
Global revolving credit facility
Debt Instrument [Line Items]
Deferred financing costs		$ (6,400)	$ (7,200)
Unsecured Term Loans
Debt Instrument [Line Items]
Deferred financing costs		(4,400)	(4,800)
Unsecured Senior Notes
Debt Instrument [Line Items]
Deferred financing costs		$ (36,700)	(37,800)
Unsecured Senior Notes | 5.875% notes due 2020
Debt Instrument [Line Items]
Stated interest rate		5.875%
Unsecured Senior Notes | 5.250% notes due 2021
Debt Instrument [Line Items]
Stated interest rate		5.25%
Unsecured Senior Notes | 3.950% notes due 2022
Debt Instrument [Line Items]
Stated interest rate		3.95%
Unsecured Senior Notes | 3.625% notes due 2022
Debt Instrument [Line Items]
Stated interest rate		3.625%
Unsecured Senior Notes | 2.750% notes due 2023
Debt Instrument [Line Items]
Stated interest rate		2.75%
Unsecured Senior Notes | 4.750% notes due 2023
Debt Instrument [Line Items]
Stated interest rate		4.75%
Unsecured Senior Notes | 2.625% notes due 2024
Debt Instrument [Line Items]
Stated interest rate		2.625%
Unsecured Senior Notes | 2.750% notes due 2024
Debt Instrument [Line Items]
Stated interest rate		2.75%
Unsecured Senior Notes | 4.250% notes due 2025
Debt Instrument [Line Items]
Stated interest rate		4.25%
Unsecured Senior Notes | 4.750% notes due 2025
Debt Instrument [Line Items]
Stated interest rate		4.75%
Unsecured Senior Notes | 3.700% notes due 2027
Debt Instrument [Line Items]
Stated interest rate		3.70%
Unsecured Senior Notes | 3.300% notes due 2029
Debt Instrument [Line Items]
Stated interest rate		3.30%
Mortgage Loans
Debt Instrument [Line Items]
Deferred financing costs		$ 0	0
Digital Realty Trust, L.P.
Debt Instrument [Line Items]
Long-term debt, gross		9,213,029
Total indebtedness		9,147,712	8,648,618
Unamortized discounts		(17,978)
Unamortized net premiums		217
Long-term debt, net of discount (premium)		$ 9,195,268
Digital Realty Trust, L.P. | Unsecured term loan — 5-year
Debt Instrument [Line Items]
Interest rate basis spread		1.10%
Debt instrument term	5 years
Digital Realty Trust, L.P. | Unsecured term loan — 7-year
Debt Instrument [Line Items]
Interest rate basis spread		1.55%
Debt instrument term	7 years
Digital Realty Trust, L.P. | Global revolving credit facility
Debt Instrument [Line Items]
Long-term debt, gross		$ 958,480	558,191
Deferred financing costs		(6,359)	(7,245)
Total indebtedness		952,121	$ 550,946
Unamortized discounts		0
Unamortized net premiums		0
Long-term debt, net of discount (premium)		$ 958,480
Commitment fee percentage		0.20%
Number of extension options | extension	2
Debt instrument, extension term	6 months
Interest rate basis spread		1.00%
Digital Realty Trust, L.P. | Global revolving credit facility | British pound sterling (£)
Debt Instrument [Line Items]
Exchange rate | $ / £		1.40	1.35
Digital Realty Trust, L.P. | Global revolving credit facility | Euro (€)
Debt Instrument [Line Items]
Exchange rate | $ / €		1.23	1.20
Digital Realty Trust, L.P. | Unsecured Term Loans
Debt Instrument [Line Items]
Long-term debt, gross		$ 1,432,931	$ 1,425,117
Deferred financing costs		(4,433)	(4,784)
Total indebtedness		1,428,498	1,420,333
Unamortized discounts		0
Unamortized net premiums		0
Long-term debt, net of discount (premium)		1,432,931
Digital Realty Trust, L.P. | Unsecured Term Loans | British pound sterling (£)
Debt Instrument [Line Items]
Long-term debt, gross		$ 237,519	$ 229,011
Exchange rate | $ / £		1.40	1.35
Digital Realty Trust, L.P. | Unsecured Term Loans | Euro (€)
Debt Instrument [Line Items]
Exchange rate | $ / €		1.23	1.20
Digital Realty Trust, L.P. | Unsecured Term Loans | Unsecured term loan — 5-year
Debt Instrument [Line Items]
Long-term debt, gross		$ 1,132,931	$ 1,125,117
Interest rate basis spread		1.10%
Debt instrument term		5 years
Digital Realty Trust, L.P. | Unsecured Term Loans | Unsecured term loan — 7-year
Debt Instrument [Line Items]
Long-term debt, gross		$ 300,000	300,000
Interest rate basis spread		1.55%
Debt instrument term		7 years
Digital Realty Trust, L.P. | Unsecured Senior Notes
Debt Instrument [Line Items]
Long-term debt, gross		$ 6,715,440
Deferred financing costs		(36,735)	(37,788)
Total indebtedness		6,660,727	6,570,757
Unamortized discounts		(17,978)	(18,508)
Unamortized net premiums		0
Long-term debt, net of discount (premium)		6,697,462	6,608,545
Digital Realty Trust, L.P. | Unsecured Senior Notes | Floating rate notes due 2019
Debt Instrument [Line Items]
Long-term debt, gross		$ 154,050	150,063
Digital Realty Trust, L.P. | Unsecured Senior Notes | Floating rate notes due 2019 | EURIBOR
Debt Instrument [Line Items]
Interest rate basis spread		0.50%
Digital Realty Trust, L.P. | Unsecured Senior Notes | 5.875% notes due 2020
Debt Instrument [Line Items]
Long-term debt, gross		$ 500,000	500,000
Stated interest rate		5.875%
Digital Realty Trust, L.P. | Unsecured Senior Notes | 3.400% notes due 2020
Debt Instrument [Line Items]
Long-term debt, gross		$ 500,000	500,000
Stated interest rate		3.40%
Digital Realty Trust, L.P. | Unsecured Senior Notes | 5.250% notes due 2021
Debt Instrument [Line Items]
Long-term debt, gross		$ 400,000	400,000
Stated interest rate		5.25%
Digital Realty Trust, L.P. | Unsecured Senior Notes | 3.950% notes due 2022
Debt Instrument [Line Items]
Long-term debt, gross		$ 500,000	500,000
Stated interest rate		3.95%
Digital Realty Trust, L.P. | Unsecured Senior Notes | 3.625% notes due 2022
Debt Instrument [Line Items]
Long-term debt, gross		$ 300,000	300,000
Stated interest rate		3.625%
Digital Realty Trust, L.P. | Unsecured Senior Notes | 2.750% notes due 2023
Debt Instrument [Line Items]
Long-term debt, gross		$ 350,000	350,000
Stated interest rate		2.75%
Digital Realty Trust, L.P. | Unsecured Senior Notes | 4.750% notes due 2023
Debt Instrument [Line Items]
Long-term debt, gross		$ 420,450	405,390
Stated interest rate		4.75%
Digital Realty Trust, L.P. | Unsecured Senior Notes | 2.625% notes due 2024
Debt Instrument [Line Items]
Long-term debt, gross		$ 739,440	720,300
Stated interest rate		2.625%
Digital Realty Trust, L.P. | Unsecured Senior Notes | 2.750% notes due 2024
Debt Instrument [Line Items]
Long-term debt, gross		$ 350,375	337,825
Stated interest rate		2.75%
Digital Realty Trust, L.P. | Unsecured Senior Notes | 4.250% notes due 2025
Debt Instrument [Line Items]
Long-term debt, gross		$ 560,600	540,520
Stated interest rate		4.25%
Digital Realty Trust, L.P. | Unsecured Senior Notes | 4.750% notes due 2025
Debt Instrument [Line Items]
Long-term debt, gross		$ 450,000	450,000
Stated interest rate		4.75%
Digital Realty Trust, L.P. | Unsecured Senior Notes | 3.700% notes due 2027
Debt Instrument [Line Items]
Long-term debt, gross		$ 1,000,000	1,000,000
Stated interest rate		3.70%
Digital Realty Trust, L.P. | Unsecured Senior Notes | 3.300% notes due 2029
Debt Instrument [Line Items]
Long-term debt, gross		$ 490,525	472,955
Stated interest rate		3.30%
Digital Realty Trust, L.P. | Unsecured Senior Notes | Secured note due 2023 | LIBOR
Debt Instrument [Line Items]
Interest rate basis spread		1.10%
Digital Realty Trust, L.P. | Mortgage Loans
Debt Instrument [Line Items]
Long-term debt, gross		$ 106,178
Deferred financing costs		(29)	(29)
Total indebtedness		106,366	106,582
Unamortized discounts		0
Unamortized net premiums		217	241
Long-term debt, net of discount (premium)		106,395	106,611
Digital Realty Trust, L.P. | Mortgage Loans | 731 East Trade Street
Debt Instrument [Line Items]
Long-term debt, gross		$ 2,178	2,370
Effective interest rate (as a percent)		8.22%
Digital Realty Trust, L.P. | Mortgage Loans | Secured note due 2023
Debt Instrument [Line Items]
Long-term debt, gross		$ 104,000	$ 104,000

XML

Debt of the Operating Partnership (Floating and Base Rate Borrowing) (Details) - Digital Realty Trust, L.P. $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($) $ / € $ / ¥ $ / £ $ / $ $ / $ $ / $	Dec. 31, 2017 USD ($) $ / € $ / ¥ $ / £ $ / $ $ / $
Debt Instrument [Line Items]
Long-term debt, gross	$ 9,213,029
Global revolving credit facility
Debt Instrument [Line Items]
Long-term debt, gross	$ 958,480	$ 558,191
Weighted-average interest rate	2.52%	2.21%
Interest rate basis spread	1.00%
Global revolving credit facility | Floating Rate
Debt Instrument [Line Items]
Long-term debt, gross	$ 943,480	$ 543,191
Weighted-average interest rate	2.48%	2.15%
Interest rate basis spread	1.00%
U.S. dollar ($) | Global revolving credit facility | Floating Rate
Debt Instrument [Line Items]
Long-term debt, gross	$ 745,000	$ 400,000
Weighted-average interest rate	2.78%	2.48%
U.S. dollar ($) | Global revolving credit facility | Base Rate [Member]
Debt Instrument [Line Items]
Long-term debt, gross	$ 15,000	$ 15,000
Weighted-average interest rate	4.75%	4.50%
British pound sterling (£) | Global revolving credit facility
Debt Instrument [Line Items]
Exchange rate | $ / £	1.40	1.35
British pound sterling (£) | Global revolving credit facility | Floating Rate
Debt Instrument [Line Items]
Long-term debt, gross	$ 14,015	$ 18,918
Weighted-average interest rate	1.51%	1.50%
Euro (€) | Global revolving credit facility
Debt Instrument [Line Items]
Exchange rate | $ / €	1.23	1.20
Euro (€) | Global revolving credit facility | Floating Rate
Debt Instrument [Line Items]
Long-term debt, gross	$ 38,204	$ 31,213
Weighted-average interest rate	0.62%	0.62%
Australian dollar (AUD) | Global revolving credit facility
Debt Instrument [Line Items]
Exchange rate | $ / $	0.77
Australian dollar (AUD) | Global revolving credit facility | Floating Rate
Debt Instrument [Line Items]
Long-term debt, gross	$ 11,672	$ 0
Weighted-average interest rate	2.77%	0.00%
Hong Kong dollar (HKD) | Global revolving credit facility
Debt Instrument [Line Items]
Exchange rate | $ / $	0.13	0.13
Hong Kong dollar (HKD) | Global revolving credit facility | Floating Rate
Debt Instrument [Line Items]
Long-term debt, gross	$ 4,829	$ 4,100
Weighted-average interest rate	1.84%	2.20%
Japanese yen (JPY) | Global revolving credit facility
Debt Instrument [Line Items]
Exchange rate | $ / ¥	0.01	0.01
Japanese yen (JPY) | Global revolving credit facility | Floating Rate
Debt Instrument [Line Items]
Long-term debt, gross	$ 90,985	$ 65,890
Weighted-average interest rate	0.92%	0.96%
Canadian dollar (CAD) | Global revolving credit facility
Debt Instrument [Line Items]
Exchange rate | $ / $	0.78	0.80
Canadian dollar (CAD) | Global revolving credit facility | Floating Rate
Debt Instrument [Line Items]
Long-term debt, gross	$ 38,775	$ 23,070
Weighted-average interest rate	2.60%	2.36%

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Debt of the Operating Partnership (Weighted-average Interest Rate by Denomination of Draw) (Details) - Digital Realty Trust, L.P. $ in Thousands	Mar. 31, 2018 USD ($) $ / $ $ / ¥ $ / £ $ / $ $ / $ $ / $	Dec. 31, 2017 USD ($) $ / $ $ / ¥ $ / £ $ / $ $ / $ $ / $
Debt Instrument [Line Items]
Long-term debt, gross	$ 9,213,029
Unsecured Term Loans
Debt Instrument [Line Items]
Long-term debt, gross	$ 1,432,931	$ 1,425,117
Weighted-average interest rate	2.55%	2.42%
Senior Notes
Debt Instrument [Line Items]
Long-term debt, gross	$ 6,715,440
Interest Rate Swap | Unsecured Term Loans
Debt Instrument [Line Items]
Weighted-average interest rate	2.41%	2.41%
U.S. dollar ($) | Unsecured Term Loans
Debt Instrument [Line Items]
Long-term debt, gross	$ 606,911	$ 606,911
Weighted-average interest rate	3.08%	2.78%
U.S. dollar ($) | Interest Rate Swap | Unsecured Term Loans
Debt Instrument [Line Items]
Weighted-average interest rate	2.72%	2.72%
British pound sterling (£) | Unsecured Term Loans
Debt Instrument [Line Items]
Long-term debt, gross	$ 237,519	$ 229,011
Weighted-average interest rate	1.60%	1.59%
Exchange rate | $ / £	1.40	1.35
British pound sterling (£) | Interest Rate Swap | Unsecured Term Loans
Debt Instrument [Line Items]
Weighted-average interest rate	1.89%	1.89%
Singapore dollar (SGD) | Unsecured Term Loans
Debt Instrument [Line Items]
Long-term debt, gross	$ 238,129	$ 233,788
Weighted-average interest rate	2.21%	2.17%
Exchange rate | $ / $	0.76	0.75
Australian dollar (AUD) | Unsecured Term Loans
Debt Instrument [Line Items]
Long-term debt, gross	$ 176,847	$ 179,841
Weighted-average interest rate	2.88%	2.79%
Exchange rate | $ / $	0.77	0.78
Hong Kong dollar (HKD) | Unsecured Term Loans
Debt Instrument [Line Items]
Long-term debt, gross	$ 85,001	$ 85,762
Weighted-average interest rate	1.85%	2.20%
Exchange rate | $ / $	0.13	0.13
Canadian dollar (CAD) | Unsecured Term Loans
Debt Instrument [Line Items]
Long-term debt, gross	$ 76,387	$ 78,357
Weighted-average interest rate	2.70%	2.44%
Exchange rate | $ / $	0.78	0.80
Canadian dollar (CAD) | Interest Rate Swap | Unsecured Term Loans
Debt Instrument [Line Items]
Weighted-average interest rate	1.88%	1.88%
Japanese yen (JPY) | Unsecured Term Loans
Debt Instrument [Line Items]
Long-term debt, gross	$ 12,137	$ 11,447
Weighted-average interest rate	1.02%	1.05%
Exchange rate | $ / ¥	0.01	0.01

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Debt of the Operating Partnership (Global Revolving Credit Facility) (Narrative) (Details) - Global revolving credit facility, net - Digital Realty Trust, L.P.		3 Months Ended
	Jan. 15, 2016 USD ($) extension	Mar. 31, 2018 USD ($)	Dec. 31, 2017	Aug. 15, 2013 USD ($)
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	$ 2,000,000,000.0			$ 2,000,000,000.0
Number of extension options | extension	2
Revolving credit facility commitments extension	6 months
Interest rate basis spread		1.00%
Commitment fee percentage		0.20%
Weighted-average interest rate		2.52%	2.21%
Letter of credit security amount		$ 22,900,000
Accordian Feature
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	$ 2,500,000,000
Prime Rate
Debt Instrument [Line Items]
Interest rate basis spread		4.75%

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Debt of the Operating Partnership (Unsecured Term Loan) (Narrative) (Details) - Digital Realty Trust, L.P. - USD ($)		3 Months Ended
	Jan. 15, 2016	Mar. 31, 2018	Dec. 31, 2017	Apr. 16, 2012
Debt Instrument [Line Items]
Long-term debt, gross		$ 9,213,029,000
Unsecured Term Loans
Debt Instrument [Line Items]
Long-term debt, gross		$ 1,432,931,000	$ 1,425,117,000
Unsecured term loan — 5-year
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	$ 1,250,000,000.00
Debt instrument term	5 years
Interest rate basis spread		1.10%
Unsecured term loan — 5-year | Unsecured Term Loans
Debt Instrument [Line Items]
Debt instrument term		5 years
Interest rate basis spread		1.10%
Long-term debt, gross		$ 1,132,931,000	1,125,117,000
Unsecured term loan — 7-year
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	$ 300,000,000
Debt instrument term	7 years
Interest rate basis spread		1.55%
Unsecured term loan — 7-year | Unsecured Term Loans
Debt Instrument [Line Items]
Debt instrument term		7 years
Interest rate basis spread		1.55%
Long-term debt, gross		$ 300,000,000	300,000,000
Unsecured Term Loans
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity		1,550,000,000.00		$ 1,000,000,000.0
Credit facility, maximum borrowing capacity, subject to receipt of lender commitments and other conditions		1,800,000,000.0
U.S. dollar ($) | Unsecured Term Loans
Debt Instrument [Line Items]
Long-term debt, gross		$ 606,911,000	$ 606,911,000

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Debt of the Operating Partnership (Schedule of Debt Maturities And Principal Maturities) (Details) - Digital Realty Trust, L.P. $ in Thousands	Jan. 15, 2016 extension	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Debt Instrument [Line Items]
Remainder of 2018		$ 401
2019		154,694
2020		1,959,613
2021		1,532,931
2022		800,000
Thereafter		4,765,390
Subtotal		9,213,029
Unamortized discounts		(17,978)
Unamortized premium		217
Long-term debt, net of discount (premium)		9,195,268
Global revolving credit facility, net
Debt Instrument [Line Items]
Remainder of 2018		0
2019		0
2020		958,480
2021		0
2022		0
Thereafter		0
Subtotal		958,480	$ 558,191
Unamortized discounts		0
Unamortized premium		0
Long-term debt, net of discount (premium)		958,480
Number of extension options | extension	2
Revolving credit facility commitments extension	6 months
Unsecured Term Loans
Debt Instrument [Line Items]
Remainder of 2018		0
2019		0
2020		0
2021		1,132,931
2022		0
Thereafter		300,000
Subtotal		1,432,931	1,425,117
Unamortized discounts		0
Unamortized premium		0
Long-term debt, net of discount (premium)		1,432,931
Unsecured Senior Notes
Debt Instrument [Line Items]
Remainder of 2018		0
2019		154,050
2020		1,000,000
2021		400,000
2022		800,000
Thereafter		4,361,390
Subtotal		6,715,440
Unamortized discounts		(17,978)	(18,508)
Unamortized premium		0
Long-term debt, net of discount (premium)		6,697,462	6,608,545
Mortgage Loans
Debt Instrument [Line Items]
Remainder of 2018		401
2019		644
2020		1,133
2021		0
2022		0
Thereafter		104,000
Subtotal		106,178
Unamortized discounts		0
Unamortized premium		217	241
Long-term debt, net of discount (premium)		$ 106,395	$ 106,611

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Income per Share (Summary of Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Net income available to common stockholders	$ 86,298	$ 66,145
Weighted average shares/units outstanding-basic (shares/units)	205,714,173	159,297,027
Potentially dilutive common shares:
Stock options (shares)	0	4
Unvested incentive units (shares)	302,016	237,336
Forward equity offering (shares)	0	283,388
Market performance-based awards (shares)	491,287	603,900
Weighted average shares/units outstanding-diluted (shares/units)	206,507,476	160,421,655
Income per share:
Basic (in dollars per share/unit)	$ 0.42	$ 0.42
Diluted (in dollars per share/unit)	$ 0.42	$ 0.41

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Income per Share (Schedule of Antidilutive Securities Excluded from Computation of Earnings per Share) (Details) - shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities (shares)	20,668,019	12,412,703
Weighted average of Operating Partnership common units not owned by Digital Realty Trust, Inc.
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities (shares)	8,295,287	2,177,874
Series C Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities (shares)	1,967,430	0
Potentially dilutive Series F Cumulative Redeemable Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities (shares)	0	1,783,083
Series G Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities (shares)	2,439,505	2,438,074
Series H Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities (shares)	3,574,840	3,572,744
Series I Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities (shares)	2,442,359	2,440,928
Potentially dilutive Series J Cumulative Redeemable Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities (shares)	1,948,598	0

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Income per Unit (Summary of Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Class of Stock [Line Items]
Net income available to common unitholders	$ 86,298	$ 66,145
Weighted average shares/units outstanding-basic (shares/units)	205,714,173	159,297,027
Potentially dilutive common units:
Stock options (units)	0	4
Unvested incentive units (units)	302,016	237,336
Forward equity offering (units)	0	283,388
Market performance-based awards (units)	491,287	603,900
Weighted average shares/units outstanding-diluted (shares/units)	206,507,476	160,421,655
Income per share:
Basic (in dollars per share/unit)	$ 0.42	$ 0.42
Diluted (in dollars per share/unit)	$ 0.42	$ 0.41
Digital Realty Trust, L.P.
Class of Stock [Line Items]
Net income available to common unitholders	$ 89,778	$ 67,049
Weighted average shares/units outstanding-basic (shares/units)	214,009,460	161,474,901
Potentially dilutive common units:
Stock options (units)	0	4
Unvested incentive units (units)	302,016	237,336
Forward equity offering (units)	0	283,388
Market performance-based awards (units)	491,287	603,900
Weighted average shares/units outstanding-diluted (shares/units)	214,802,763	162,599,529
Income per share:
Basic (in dollars per share/unit)	$ 0.42	$ 0.42
Diluted (in dollars per share/unit)	$ 0.42	$ 0.41

XML

Income per Unit (Schedule of Antidilutive Securities Excluded from Computation of Earnings per Share) (Details) - shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities (units)	20,668,019	12,412,703
Potentially dilutive Series C Cumulative Redeemable Perpetual Preferred Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities (units)	1,967,430	0
Potentially dilutive Series F Cumulative Redeemable Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities (units)	0	1,783,083
Series G Preferred Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities (units)	2,439,505	2,438,074
Potentially dilutive Series H Cumulative Redeemable Preferred Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities (units)	3,574,840	3,572,744
Potentially dilutive Series I Cumulative Redeemable Preferred Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities (units)	2,442,359	2,440,928
Digital Realty Trust, L.P.
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities (units)	12,372,732	10,234,829
Digital Realty Trust, L.P. | Potentially dilutive Series C Cumulative Redeemable Perpetual Preferred Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities (units)	1,967,430	0
Digital Realty Trust, L.P. | Potentially dilutive Series F Cumulative Redeemable Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities (units)	0	1,783,083
Digital Realty Trust, L.P. | Series G Preferred Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities (units)	2,439,505	2,438,074
Digital Realty Trust, L.P. | Potentially dilutive Series H Cumulative Redeemable Preferred Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities (units)	3,574,840	3,572,744
Digital Realty Trust, L.P. | Potentially dilutive Series I Cumulative Redeemable Preferred Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities (units)	2,442,359	2,440,928
Digital Realty Trust, L.P. | Potentially dilutive Series J Cumulative Redeemable Preferred Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities (units)	1,948,598	0

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Income Taxes (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Percentage of income distributed (at least)	100.00%
Net deferred tax liability	$ 172.3	$ 167.0

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Equity and Accumulated Other Comprehensive Loss, Net (Noncontrolling Interests in Operating Partnership) (Details) $ in Millions	Mar. 31, 2018 USD ($) shares	Dec. 31, 2017 USD ($) shares
Class of Stock [Line Items]
Number of units (units)	205,874,914	205,470,300
Percentage of total	95.90%	96.00%
Common stock conversion ratio	1
Common units held by third parties
Class of Stock [Line Items]
Common units held by third parties (units)	6,730,727	6,899,094
Percentage of total	3.20%	3.20%
Incentive units held by employees and directors (see Note 14)
Class of Stock [Line Items]
Incentive units held by employees and directors (units)	2,005,761	1,590,001
Percentage of total	0.90%	0.80%
Noncontrolling Interests in Operating Partnership
Class of Stock [Line Items]
Number of units (units)	214,611,402	213,959,395
Percentage of total	100.00%	100.00%
Digital Realty Trust, L.P.
Class of Stock [Line Items]
Common stock conversion ratio	1
Redeemable noncontrolling interests – operating partnership | $	$ 889.0	$ 887.0

XML

Equity and Accumulated Other Comprehensive Loss, Net (Summary of Activity For Noncontrolling Interests in The Operating Partnership) (Details)	3 Months Ended
	Mar. 31, 2018 shares
Common and Incentive Unit Activity [Roll Forward]
As of December 31, 2017 (units)	8,489,095
Redemption of common units for shares of Digital Realty Trust, Inc. common stock (units)	(168,367)
Incentive units issued upon achievement of market performance condition	326,947
Grant of incentive units to employees and directors	95,592
Cancellation / forfeitures of incentive units held by employees and directors	(6,779)
As of March 31, 2018 (units)	8,736,488
Common Units
Common and Incentive Unit Activity [Roll Forward]
As of December 31, 2017 (units)	6,899,094
Redemption of common units for shares of Digital Realty Trust, Inc. common stock (units)	(168,367)
Incentive units issued upon achievement of market performance condition	0
Grant of incentive units to employees and directors	0
Cancellation / forfeitures of incentive units held by employees and directors	0
As of March 31, 2018 (units)	6,730,727
Incentive Units
Common and Incentive Unit Activity [Roll Forward]
As of December 31, 2017 (units)	1,590,001
Redemption of common units for shares of Digital Realty Trust, Inc. common stock (units)	0
Incentive units issued upon achievement of market performance condition	326,947
Grant of incentive units to employees and directors	95,592
Cancellation / forfeitures of incentive units held by employees and directors	(6,779)
As of March 31, 2018 (units)	2,005,761

XML

Equity and Accumulated Other Comprehensive Loss, Net (Schedule of Dividends) (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($) $ / shares
Series C Preferred Stock
Dividends Payable [Line Items]
Preferred stock dividend per share amount (in dollars per share) | $ / shares	$ 1.65625
Series C Preferred Stock | March 1, 2018 Installment
Dividends Payable [Line Items]
Dividends, preferred stock | $	$ 3,333
Series G Preferred Stock
Dividends Payable [Line Items]
Preferred stock dividend per share amount (in dollars per share) | $ / shares	$ 1.46875
Series G Preferred Stock | March 1, 2018 Installment
Dividends Payable [Line Items]
Dividends, preferred stock | $	$ 3,672
Series H Preferred Stock
Dividends Payable [Line Items]
Preferred stock dividend per share amount (in dollars per share) | $ / shares	$ 1.84375
Series H Preferred Stock | March 1, 2018 Installment
Dividends Payable [Line Items]
Dividends, preferred stock | $	$ 6,730
Series I Preferred Stock
Dividends Payable [Line Items]
Preferred stock dividend per share amount (in dollars per share) | $ / shares	$ 1.5875
Series I Preferred Stock | March 1, 2018 Installment
Dividends Payable [Line Items]
Dividends, preferred stock | $	$ 3,969
Series J Preferred Stock
Dividends Payable [Line Items]
Preferred stock dividend per share amount (in dollars per share) | $ / shares	$ 1.3125
Series J Preferred Stock | March 1, 2018 Installment
Dividends Payable [Line Items]
Dividends, preferred stock | $	$ 2,625
Common Stock
Dividends Payable [Line Items]
Common stock dividend per share amount (in dollars per share) | $ / shares	$ 4.04
Common Stock | March 1, 2018 Installment
Dividends Payable [Line Items]
Dividends, common stock | $	$ 208,015

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Equity and Accumulated Other Comprehensive Loss, Net (Schedule of Accumulated Other Comprehensive Loss, Net) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ 11,049,450
Net current period change	4,684
Reclassification to interest expense from interest rate swaps	(226)
Ending balance	10,936,544
Foreign currency translation adjustments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(147,370)
Net current period change	(3,598)
Reclassification to interest expense from interest rate swaps	0
Ending balance	(150,968)
Cash flow hedge adjustments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	13,200
Net current period change	8,282
Reclassification to interest expense from interest rate swaps	(226)
Ending balance	21,256
Foreign currency net investment hedge adjustments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	25,738
Net current period change	0
Reclassification to interest expense from interest rate swaps	0
Ending balance	25,738
Accumulated other comprehensive income (loss), net
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(108,432)
Ending balance	$ (103,974)

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Capital and Accumulated Other Comprehensive Loss (Partnership Units Narrative) (Details) $ in Millions	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Class of Stock [Line Items]
Common stock conversion ratio	1
Digital Realty Trust, L.P.
Class of Stock [Line Items]
Common stock conversion ratio	1
Redeemable noncontrolling interests – operating partnership	$ 889.0	$ 887.0

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Capital and Accumulated Other Comprehensive Loss (Schedule of Distributions) (Details) - Digital Realty Trust, L.P. $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($) $ / shares
Series C Preferred Units
Dividends Payable [Line Items]
Preferred stock dividend per share amount (in dollars per share/unit) | $ / shares	$ 1.65625
Series G Preferred Unite
Dividends Payable [Line Items]
Preferred stock dividend per share amount (in dollars per share/unit) | $ / shares	1.46875
Series H Preferred Units
Dividends Payable [Line Items]
Preferred stock dividend per share amount (in dollars per share/unit) | $ / shares	1.84375
Series I Preferred Units
Dividends Payable [Line Items]
Preferred stock dividend per share amount (in dollars per share/unit) | $ / shares	1.5875
Series J Preferred Units
Dividends Payable [Line Items]
Preferred stock dividend per share amount (in dollars per share/unit) | $ / shares	1.3125
Common Units
Dividends Payable [Line Items]
Common stock dividend per share amount (in dollars per share/unit) | $ / shares	$ 4.04
March 1, 2018 Installment | Series C Preferred Units
Dividends Payable [Line Items]
Dividends/Distributions, preferred units | $	$ 3,333
March 1, 2018 Installment | Series G Preferred Unite
Dividends Payable [Line Items]
Dividends/Distributions, preferred units | $	3,672
March 1, 2018 Installment | Series H Preferred Units
Dividends Payable [Line Items]
Dividends/Distributions, preferred units | $	6,730
March 1, 2018 Installment | Series I Preferred Units
Dividends Payable [Line Items]
Dividends/Distributions, preferred units | $	3,969
March 1, 2018 Installment | Series J Preferred Units
Dividends Payable [Line Items]
Dividends/Distributions, preferred units | $	2,625
March 1, 2018 Installment | Common Units
Dividends Payable [Line Items]
Dividends/Distributions, common stock/units | $	$ 216,953

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Capital and Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Loss) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Net current period change	$ 4,684
Reclassification to interest expense from interest rate swaps	(226)
Foreign currency translation adjustments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Net current period change	(3,598)
Reclassification to interest expense from interest rate swaps	0
Cash flow hedge adjustments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Net current period change	8,282
Reclassification to interest expense from interest rate swaps	(226)
Foreign currency net investment hedge adjustments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Net current period change	0
Reclassification to interest expense from interest rate swaps	0
Digital Realty Trust, L.P.
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	11,049,450
Net current period change	4,873
Reclassification to interest expense from interest rate swaps	(235)
Ending Balance	10,936,544
Digital Realty Trust, L.P. | Foreign currency translation adjustments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(151,795)
Net current period change	(3,743)
Reclassification to interest expense from interest rate swaps	0
Ending Balance	(155,538)
Digital Realty Trust, L.P. | Cash flow hedge adjustments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	12,758
Net current period change	8,616
Reclassification to interest expense from interest rate swaps	(235)
Ending Balance	21,139
Digital Realty Trust, L.P. | Foreign currency net investment hedge adjustments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	26,152
Net current period change	0
Reclassification to interest expense from interest rate swaps	0
Ending Balance	26,152
Digital Realty Trust, L.P. | Accumulated other comprehensive income (loss), net
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(112,885)
Ending Balance	$ (108,247)

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Incentive Plan (Narrative) (Details)		3 Months Ended
	Sep. 22, 2017 shares	Mar. 31, 2018 shares
2004 Incentive Award Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional shares registered for issuance, 2014 Incentive Award Plan	3,714,560
2014 Incentive Award Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares remaining for issuance under the Incentive Plan (shares)		7,100,000
Conversion of units to shares ratio		1

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Incentive Plan Incentive Plan (Schedule of Deferred and Unearned Compensation) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Long-term incentive units
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Deferred compensation, expensed	$ 0.9	$ 0.7
Deferred compensation, capitalized	0.2	0.4
Unearned compensation	$ 15.0		$ 6.9
Expected period to recognize unearned compensation (in years)	3 years 2 months 10 days
Market performance-based awards
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Deferred compensation, expensed	$ 3.1	2.1
Deferred compensation, capitalized	0.3	0.7
Unearned compensation	$ 44.7		24.7
Expected period to recognize unearned compensation (in years)	2 years 6 months 19 days
Restricted stock
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Deferred compensation, expensed	$ 1.5	1.0
Deferred compensation, capitalized	1.1	$ 0.8
Unearned compensation	$ 30.5		$ 17.5
Expected period to recognize unearned compensation (in years)	3 years 2 months 15 days

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Incentive Plan (Summary of Long-Term Incentive Units) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Units
Granted (shares)	95,592
Long-term incentive units
Units
Unvested beginning of period (shares)	99,295
Granted (shares)	92,361
Vested (shares)	(16,313)
Unvested end of period (shares)	175,343
Weighted-Average Grant Date Fair Value
Unvested, beginning of period (in dollars per share)	$ 90.59
Granted (in dollars per share)	99.01
Vested (in dollars per share)	100.18
Unvested, end of period (in dollars per share)	$ 94.13
Award vesting period	4 years
Unearned compensation	$ 15.0	$ 6.9
Unearned compensation, period of recognition (in years)	3 years 2 months 10 days

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Incentive Plan (Market Performance Based Awards) (Details) $ in Millions							1 Months Ended	3 Months Ended
	Mar. 09, 2018	Mar. 01, 2018	Feb. 27, 2018	Jan. 01, 2018	Feb. 28, 2017	Jan. 01, 2017	Jan. 31, 2018 shares	Mar. 31, 2018 USD ($) simulation shares	Dec. 31, 2017 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (shares)								95,592
Market performance-based awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period								3 years
Number of trials | simulation								100,000
Expected Stock Price Volatility	22.00%	22.00%		22.00%	23.00%	25.00%
Risk-Free Interest rate	2.42%	2.34%		1.98%	1.43%	1.49%
Fair value of awards | $								$ 96.7
Award requisite service period								4 years
Unearned compensation | $								$ 44.7	$ 24.7
Market performance-based awards | Below Threshold Level
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance threshold percentage								(3.00%)
Vesting percentage								0.00%
Market performance-based awards | Threshold Level
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance threshold percentage								(3.00%)
Vesting percentage								25.00%
Market performance-based awards | Target Level
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance threshold percentage								1.00%
Vesting percentage								50.00%
Market performance-based awards | High Level
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance threshold percentage								5.00%
Vesting percentage								100.00%
Class D Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (shares)								2,165,692
Vested (shares)							363,193
Distribution Equivalent Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (shares)							36,246
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (shares)								590,569
Vested (shares)							49,707
2015 Performance Grant | Market performance-based awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage			50.00%
2015 Performance Grant | Market performance-based awards | Tranche Five
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage								50.00%
2016 Performance Grant | Market performance-based awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period								3 years
2017 Performance Grant | Market performance-based awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period								3 years
2017 Performance Grant | Market performance-based awards | Tranche Five
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage								50.00%
2017 Performance Grant | Market performance-based awards | Tranche Six
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage								50.00%
2018 Performance Grant | Market performance-based awards | Tranche Five
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage								50.00%
2018 Performance Grant | Market performance-based awards | Tranche Six
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage								50.00%

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Incentive Plan Incentive Plan (Assumptions Used) (Details) - Market performance-based awards	Mar. 09, 2018	Mar. 01, 2018	Jan. 01, 2018	Feb. 28, 2017	Jan. 01, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected Stock Price Volatility	22.00%	22.00%	22.00%	23.00%	25.00%
Risk-Free Interest rate	2.42%	2.34%	1.98%	1.43%	1.49%

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Incentive Plan (Summary of Restricted Stock Activity) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Units
Granted (shares)	95,592
Restricted stock
Units
Unvested beginning of period (shares)	259,422
Granted (shares)	154,647
Vested (shares)	(80,614)
Unvested end of period (shares)	333,455
Weighted-Average Grant Date Fair Value
Unvested, beginning of period (in dollars per share)	$ 90.54
Granted (in dollars per share)	99.34
Vested (in dollars per share)	81.99
Unvested, end of period (in dollars per share)	$ 96.64
Unearned compensation	$ 30.5	$ 17.5
Unearned compensation, period of recognition (in years)	3 years 2 months 15 days
Restricted stock | Maximum
Weighted-Average Grant Date Fair Value
Award vesting period	4 years

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Derivative Instruments (Narrative) (Details) $ in Thousands, £ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($)	Mar. 31, 2017 USD ($)	Mar. 31, 2018 GBP (£) instrument	Jul. 01, 2016 instrument	Jun. 30, 2016 USD ($)
Derivative [Line Items]
Gain (loss) to be reclassified within twelve months	$ 4,700
Proceeds from forward contracts	0	$ 51,308
Designated as Hedging Instrument | Currency forward contracts
Derivative [Line Items]
Number of Instruments | instrument			4	4
Notional amount | £			£ 357.3
Proceeds from forward contracts	64,000
Amount of AOCI to remain in AOCI	$ 26,200
Not Designated as Hedging Instrument | Currency forward contracts
Derivative [Line Items]
Fair value of derivatives					$ 37,800

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Derivative Instruments (Outstanding Interest Rate Derivatives) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($) $ / £ $ / $	Dec. 31, 2017 USD ($) $ / £ $ / $
Digital Realty Trust, L.P. | Unsecured term loan — 5-year
Currently-paying contracts
Debt instrument term	5 years
Digital Realty Trust, L.P. | Unsecured term loan — 7-year
Currently-paying contracts
Debt instrument term	7 years
Digital Realty Trust, L.P. | Unsecured Term Loans | British pound sterling (£)
Currently-paying contracts
Exchange rate | $ / £	1.40	1.35
Digital Realty Trust, L.P. | Unsecured Term Loans | Canadian dollar (CAD)
Currently-paying contracts
Exchange rate | $ / $	0.78	0.80
Interest Rate Swap, 1.611
Currently-paying contracts
Notional Amount	$ 206,000	$ 206,000
Strike Rate	1.611%
Interest Rate Swap, 1.611 | Level 2
Currently-paying contracts
Fair value of derivatives	$ 2,551	1,409
Interest Rate Swap, 1.605
Currently-paying contracts
Notional Amount	$ 54,905	54,905
Strike Rate	1.605%
Interest Rate Swap, 1.605 | Level 2
Currently-paying contracts
Fair value of derivatives	$ 673	374
Interest Rate Swap 1.016
Currently-paying contracts
Notional Amount	$ 75,000	75,000
Strike Rate	1.016%
Interest Rate Swap 1.016 | Level 2
Currently-paying contracts
Fair value of derivatives	$ 2,862	2,260
Interest Rate Swap, 1.164
Currently-paying contracts
Notional Amount	$ 75,000	75,000
Strike Rate	1.164%
Interest Rate Swap, 1.164 | Level 2
Currently-paying contracts
Fair value of derivatives	$ 2,583	1,947
Interest Rate Swap, 1.435
Currently-paying contracts
Notional Amount	$ 300,000	300,000
Strike Rate	1.435%
Interest Rate Swap, 1.435 | Level 2
Currently-paying contracts
Fair value of derivatives	$ 15,001	9,978
Interest Rate Swap, 0.792
Currently-paying contracts
Notional Amount	$ 237,519	229,012
Strike Rate	0.792%
Interest Rate Swap, 0.792 | Level 2
Currently-paying contracts
Fair value of derivatives	$ 9	(430)
Interest Rate Swap, 0.779
Currently-paying contracts
Notional Amount	$ 76,387	78,357
Strike Rate	0.779%
Interest Rate Swap, 0.779 | Level 2
Currently-paying contracts
Fair value of derivatives	$ 2,972	3,034
Interest Rate Swap
Currently-paying contracts
Notional Amount	1,024,811	1,018,274
Interest Rate Swap | Level 2
Currently-paying contracts
Fair value of derivatives	$ 26,651	$ 18,572

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Fair Value of Financial Instruments (Estimated Fair Value And Carrying Amounts) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
5.875% notes due 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Stated interest rate	5.875%
3.400% notes due 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Stated interest rate	3.40%
3.950% notes due 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Stated interest rate	3.95%
3.625% notes due 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Stated interest rate	3.625%
4.750% notes due 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Stated interest rate	4.75%
2.750% notes due 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Stated interest rate	2.75%
2.625% notes due 2024
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Stated interest rate	2.625%
2.750% notes due 2024
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Stated interest rate	2.75%
4.750% notes due 2025
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Stated interest rate	4.75%
4.250% notes due 2025
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Stated interest rate	4.25%
Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of long-term debt	$ 9,404,940	$ 9,066,434
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of long-term debt	9,195,268	8,698,464
Global revolving credit facility, net
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Deferred financing costs	6,400	7,200
Unsecured Term Loans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Deferred financing costs	4,400	4,800
Unsecured Senior Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of long-term debt	18,000	18,500
Deferred financing costs	$ 36,700	37,800
Unsecured Senior Notes | 3.400% notes due 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Stated interest rate	3.40%
Unsecured Senior Notes | 3.950% notes due 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Stated interest rate	3.95%
Unsecured Senior Notes | 3.625% notes due 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Stated interest rate	3.625%
Unsecured Senior Notes | 2.625% notes due 2024
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Stated interest rate	2.625%
Unsecured Senior Notes | 2.750% notes due 2024
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Stated interest rate	2.75%
Unsecured Senior Notes | 4.750% notes due 2025
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Stated interest rate	4.75%
Mortgage Loans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Deferred financing costs	$ 0	0
Level 2 | Global revolving credit facility, net | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Lines of credit	958,480	558,191
Level 2 | Global revolving credit facility, net | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Lines of credit	958,480	558,191
Level 2 | Unsecured Term Loans | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Lines of credit	1,432,931	1,425,117
Level 2 | Unsecured Term Loans | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Lines of credit	1,432,931	1,425,117
Level 2 | Unsecured Senior Notes | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unsecured senior notes	6,907,183	6,976,603
Level 2 | Unsecured Senior Notes | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unsecured senior notes	6,697,462	6,608,545
Level 2 | Mortgage Loans | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage Loans	106,346	106,523
Level 2 | Mortgage Loans | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage Loans	$ 106,395	$ 106,611

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Commitments and Contingencies (Details) $ in Millions	Mar. 31, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Reimbursable amount of commitments related to construction contracts	$ 10.1
Commitments related to construction contracts	$ 467.8