Debt of the Operating Partnership

12 Months Ended

Dec. 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 December 31, 2018 and 2017 is as follows (in thousands):

Indebtedness	Interest Rate at December 31, 2018		Maturity Date		Principal Outstanding December 31, 2018				Principal Outstanding December 31, 2017
Global revolving credit facilities	Various	(1)	Jan 24, 2023	(1)	$	1,663,156		(2)	$	558,191		(2)
Deferred financing costs, net					(15,421		)		(7,245		)
Global revolving credit facilities, net					1,647,735				550,946
Unsecured Term Loans
2019 Term Loan	Base Rate + 1.000%		Dec 19, 2019		375,000				—
2023 Term Loan	Various	(3)(4)	Jan 15, 2023		300,000			(5)	300,000			(5)
2024 Term Loan	Various	(3)(4)	Jan 24, 2023		508,120			(5)	1,125,117			(5)
Deferred financing costs, net					(4,216		)		(4,784		)
Unsecured term loans, net					1,178,904				1,420,333
Unsecured senior notes:
Senior Notes:
Floating rate notes due 2019	EURIBOR + 0.500%		May 22, 2019		143,338			(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		382,620			(7)	405,390			(7)
2.625% notes due 2024	2.625%		Apr 15, 2024		688,020			(6)	720,300			(6)
2.750% notes due 2024	2.750%		Jul 19, 2024		318,850			(7)	337,825			(7)
4.250% notes due 2025	4.250%		Jan 17, 2025		510,160			(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
4.450% notes due 2028	4.450%		Jul 15, 2028		650,000				—
3.300% notes due 2029	3.300%		Jul 19, 2029		446,390			(7)	472,955			(7)
3.750% notes due 2030	3.750%		Oct 17, 2030		510,160			(7)	—
Unamortized discounts					(19,859		)		(18,508		)
Total senior notes, net of discount					7,629,679				6,608,545
Deferred financing costs, net					(40,553		)		(37,788		)
Total unsecured senior notes, net of discount and deferred financing costs					7,589,126				6,570,757
Secured debt:
731 East Trade Street	8.22%		Jul 1, 2020		1,776				2,370
Secured note due December 2023	Base Rate + 4.250%		Dec 20, 2023		104,000				104,000
Secured note due March 2023	LIBOR + 1.100%	(4)	Mar 1, 2023		600,000				—
Unamortized net premiums					148				241
Total secured debt, including premiums					705,924				106,611
Deferred financing costs, net					(20,210		)		(29		)
Total secured debt, including premiums and net of deferred financing costs					685,714				106,582
Total indebtedness					$	11,101,479			$	8,648,618

(1) The interest rate for borrowings under the global revolving credit facility equals the applicable index plus a margin of 90 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. The interest rate for borrowings under the Yen revolving credit facility equals the applicable index plus a margin of 50 basis points, which is based on the current credit ratings of our long-term debt.

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

Denomination of Draw	Balance as of December 31, 2018			Weighted-average interest rate		Balance as of December 31, 2017			Weighted-average interest rate
Global Revolving Credit Facility
Floating Rate Borrowing (a)
U.S. dollar ($)	$	890,000		3.37	%	$	400,000		2.48	%
British pound sterling (£)	8,290		(c)	1.61	%	18,918		(d)	1.50	%
Euro (€)	451,800		(c)	0.90	%	31,213		(d)	0.62	%
Australian dollar (AUD)	27,632		(c)	2.82	%	—			—	%
Hong Kong dollar (HKD)	8,797		(c)	3.14	%	4,100		(d)	2.20	%
Japanese yen (JPY)	4,105		(c)	0.90	%	65,890		(d)	0.96	%
Singapore dollar (SGD)	77,112		(c)	2.79	%	—			—	%
Canadian dollar (CAD)	60,856		(c)	3.16	%	23,070		(d)	2.36	%
Total	$	1,528,592		2.57	%	$	543,191		2.15	%
Base Rate Borrowing (b)
U.S. dollar ($)	$	—		—	%	$	15,000		4.50	%
Total borrowings	$	1,528,592		2.57	%	$	558,191		2.21	%
Yen Revolving Credit Facility	134,564		(c)	0.50	%	—			—	%
Total borrowings	$	1,663,156		2.41	%	$	558,191		2.21	%

(a) The interest rates for floating rate borrowings under the global revolving credit facility currently equal the applicable index plus a margin of 90 basis points, which is based on the credit rating 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 $1.28 to £1.00, $1.15 to €1.00, $0.78 to 1.00 AUD, $0.13 to 1.00 HKD, $0.01 to 1.00 JPY, $0.73 to 1.00 SGD and $0.73 to 1.00 CAD, respectively, as of December 31, 2018.

(d) Based on exchange rates $1.23 to £1.00, of $1.35 to €1.00, $0.78 to 1.00 HKD, $0.13 to 1.00 JPY, $0.69 to 1.00 SGD 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 is currently 100 basis points over the applicable index for floating rate advances for the 2023 Term Loan and the 2024 Term Loan.

(4) We have entered into interest rate swap agreements as a cash flow hedge for interest generated by the U.S. dollar and Canadian dollar borrowings under the global revolving credit facility and unsecured term loan. See Note 15. "Derivative Instruments" for further information. 

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

Denomination of Draw	Balance as of December 31, 2018			Weighted-average interest rate			Balance as of December 31, 2017			Weighted-average interest rate
U.S. dollar ($)	$	300,000		3.46	%	(b)	$	606,911		2.78	%	(d)
British pound sterling (£)	—			—	%		229,011		(c)	1.59	%	(d)
Singapore dollar (SGD)	146,080		(a)	2.76	%		233,788		(c)	2.17	%
Australian dollar (AUD)	204,632		(a)	2.94	%		179,841		(c)	2.79	%
Hong Kong dollar (HKD)	85,188		(a)	3.32	%		85,762		(c)	2.20	%
Canadian dollar (CAD)	72,220		(a)	3.24	%	(b)	78,357		(c)	2.44	%	(d)
Japanese yen (JPY)	—			—	%		11,447		(c)	1.05	%
Total	$	808,120		3.17	%	(b)	$	1,425,117		2.42	%	(d)

(a) Based on exchange rates of $0.73 to 1.00 SGD, $0.70 to 1.00 AUD, $0.13 to 1.00 HKD and $0.73 to 1.00 CAD, respectively, as of December 31, 2018.

(b) As of December 31, 2018, the weighted-average interest rate reflecting interest rate swaps was 2.44% (U.S. dollar), 1.78% (Canadian dollar) and 2.66% (Total). See Note 15 for further discussion on interest rate swaps.

(c) Based on exchange rates of $1.23 to £1.00, $0.75 to 1.00 SGD, $0.78 to 1.00 AUD,$0.13 to 1.00 HKD, $0.74 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). See Note 15 for further discussion on interest rate swaps.

(6) Based on exchange rates of $1.15 to €1.00 as of December 31, 2018 and $1.20 to €1.00 as of December 31, 2017.

(7) Based on exchange rates of $1.28 to £1.00 as of December 31, 2018 and $1.35 to £1.00 as of December 31, 2017.

Global Revolving Credit Facilities

On October 24, 2018, we refinanced our global revolving credit facility and entered into a global senior credit agreement for a $2.35 billion senior unsecured revolving credit facility, which we refer to as the 2018 global revolving credit facility, that replaced the $2.0 billion revolving credit facility executed on January 15, 2016. In addition, we have the ability from time to time to increase the size of the global revolving credit facility and the unsecured term loans (discussed below), in any combination, by up to $1.25 billion, subject to the receipt of lender commitments and other conditions precedent. The 2018 global revolving credit facility matures on January 24, 2023, with twosix-month extension options available. The interest rate for borrowings under the 2018 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 90 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. The 2018 global revolving credit facility provides for borrowings in U.S., Canadian, Singapore, Australian and Hong Kong dollars, as well as Euro, British pound sterling and Japanese yen and includes the ability to add additional currencies in the future. As of December 31, 2018, interest rates are based on 1-month LIBOR, 1-month GBP LIBOR, 1-month EURIBOR, 1-month HIBOR, 1-month JPY LIBOR, 1-month SOR and 1-month CDOR, plus a margin of 0.90%. We have used and intend to use available borrowings under the 2018 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 December 31, 2018, approximately $44.5 million of letters of credit were issued.

The 2018 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 2018 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 December 31, 2018, we were in compliance with all of such covenants.

On October 24, 2018, we entered into a credit agreement for a ¥33.3 billion (approximately $296.5 million based on the exchange rate on October 24, 2018) senior unsecured revolving credit facility, which we refer to as the Yen revolving credit facility. The Yen revolving credit facility provides for borrowings in Japanese yen. In addition, we have the ability from time to time to increase the size of the Yen revolving credit facility to up to ¥93.3 billion (approximately $831.1 million based on the exchange rate on October 24, 2018), subject to receipt of lender commitments and other conditions precedent. The Yen revolving credit facility matures on January 24, 2024. The interest rate for borrowings under the Yen 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 50 basis points. A quarterly unused commitment fee, which is calculated using the average daily unused revolving credit commitment, is based on the credit ratings of our long-term debt, and is currently 10 basis points.

The Yen 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 Yen 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 December 31, 2018, we were in compliance with all of such covenants.

Unsecured Term Loans

On October 24, 2018, we refinanced our senior unsecured multi-currency term loan facility and entered into an amended and restated term loan agreement, which we refer to as the 2018 term loan agreement, which governs (i) a $300.0 million5-year senior unsecured term loan, which we refer to as the 2023 Term Loan, and (ii) an approximately $512 million5-year senior unsecured term loan, which we refer to as the 2024 Term Loan. The 2018 term loan agreement replaced the $1.55 billion term loan agreement executed on January 15, 2016. The 2023 Term Loan matures on January 15, 2023 and the 2024 Term Loan matures on January 24, 2023 with twosix-month extension options. In addition, we have the ability from time to time to increase the aggregate size of lending under the 2018 term loan agreement and the 2018 global revolving credit facility (discussed above), in any combination, by up to $1.25 billion, subject to receipt of lender commitments and other conditions precedent. Interest rates are based on our senior unsecured debt ratings and are currently 100 basis points over the applicable index for floating rate advances for the 2023 Term Loan and the 2024 Term Loan. Funds may be drawn in U.S., Canadian, Singapore, Australian and Hong Kong dollars. Based on exchange rates in effect at December 31, 2018, the balance outstanding is approximately $0.8 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 2023 Term Loan and 2024 Term Loan are consistent with our 2018 global revolving credit facility and, as of December 31, 2018, we were in compliance with all of such covenants.

Senior Notes

Senior Notes and Annual Interest Rate	Date Issued	Maturity Date	Amount Issued (in millions, local currency)		Net Proceeds (in millions) (1)		Interest Payment Dates	Initial Issuer (2)
Floating Rate Guaranteed Notes due 2019 (5)	May 22, 2017	May 22, 2019	€	125.0	$	140.1	Quarterly, commencing August 22, 2017	Digital Euro Finco, LLC (3)
5.875% Notes due 2020	Jan 28, 2010	Feb 1, 2020	$	500.0	487.1		Semi-annually, commencing August 1, 2010	Digital Realty Trust, L.P.
3.400% Notes due 2020	Oct 1, 2015	Oct 1, 2020	$	500.0	494.5		Semi-annually, commencing April 1, 2016	Digital Delta Holdings, LLC (4)
5.250% Notes due 2021	Mar 8, 2011	Mar 15, 2021	$	400.0	395.5		Semi-annually, commencing September 15, 2011	Digital Realty Trust, L.P.
3.950% Notes due 2022	Jun 23, 2015	Jul 1, 2022	$	500.0	491.8		Semi-annually, commencing January 1, 2016	Digital Realty Trust, L.P.
3.625% Notes due 2022	Sep 24, 2012	Oct 1, 2022	$	300.0	293.1		Semi-annually, commencing April 1, 2013	Digital Realty Trust, L.P.
2.750% Notes due 2023	Aug 7, 2017	Feb 1, 2023	$	350.0	346.9		Semi-annually, commencing February 1, 2018	Digital Realty Trust, L.P.
4.750% Notes due 2023	Apr 1, 2014	Oct 13, 2023	£	300.0	490.9		Semi-annually, commencing October 13, 2014	Digital Stout Holding, LLC (3)
2.625% Notes due 2024	Apr 15, 2016	Apr 15, 2024	€	600.0	670.3		Annually, commencing April 15, 2017	Digital Euro Finco, LLC (3)
2.750% Notes due 2024	Jul 21, 2017	Jul 19, 2024	£	250.0	321.3		Annually, commencing July 19, 2018	Digital Stout Holding, LLC (3)
4.250% Notes due 2025	Jan 18, 2013	Jan 17, 2025	£	400.0	624.2		Semi-annually, commencing July 17, 2013	Digital Stout Holding, LLC (3)
4.750% Notes due 2025	Oct 1, 2015	Oct 1, 2025	$	450.0	445.8		Semi-annually, commencing April 1, 2016	Digital Delta Holdings, LLC (4)
3.700% Notes due 2027	Aug 7, 2017	Aug 15, 2027	$	1,000.0	991.0		Semi-annually, commencing February 15, 2018	Digital Realty Trust, L.P.
4.450% Notes due 2028	Jun 21, 2018	Jul 15, 2028	$	650.0	643.3		Semi-annually, commencing January 15, 2019	Digital Realty Trust, L.P.
3.300% Notes due 2029	Jul 21, 2017	Jul 19, 2029	£	350.0	448.6		Annually, commencing July 19, 2018	Digital Stout Holding, LLC (3)
3.750% Notes due 2030	Oct 17, 2018	Oct 17, 2030	£	400.0	516.1		Annually, commencing October 17, 2019	Digital Stout Holding, LLC (3)

(1) Amounts are in U.S. dollars, based on the exchange rate on the date of issuance. Net proceeds are equal to principal amount less initial purchaser discount and other debt issuance costs.

(2) Digital Realty Trust, Inc. guarantees the senior notes issued by Digital Realty Trust, L.P. Both Digital Realty Trust, L.P. and Digital Realty Trust, Inc. guarantee the senior notes issued by Digital Stout Holding, LLC and Digital Euro Finco, LLC.

(3) A wholly owned subsidiary of Digital Realty Trust, L.P.

(4) Initially a wholly owned subsidiary of Digital Realty Trust, Inc., pursuant to the terms of the indenture, following the consummation of the Telx Acquisition, on October 13, 2015, Digital Delta Holdings, LLC merged with and into Digital Realty Trust, L.P., with Digital Realty Trust, L.P. surviving the merger and assuming Digital Delta Holdings, LLC’s obligations under the 3.400% 2020 Notes, the 4.750% 2025 Notes, the related indenture and registration rights agreement by operation of law.

(5) The 2019 Notes bear interest at a rate per annum, reset quarterly, equal to three-month EURIBOR plus 0.50% (currently 0.18%).

The indentures governing each of the senior notes contain certain covenants, including (1) a leverage ratio not to exceed 60%, (2) a secured debt leverage ratio not to exceed 40% and (3) an interest coverage ratio of greater than 1.50, and also requires us to maintain total unencumbered assets of not less than 150% of the aggregate principal amount of unsecured debt. At December 31, 2018, we were in compliance with each of these financial covenants.

Ascenty Acquisition Financing

On December 19, 2018, the Operating Partnership entered into a term loan agreement, with Digital Realty Trust, Inc. as the parent guarantor, which we refer to as the Ascenty term loan agreement, which governs a $375.0 million1-year senior unsecured term loan, which we refer to as the 2019 Term Loan. The 2019 Term Loan matures on December 19, 2019 with onesix-month extension option. Interest rates equals the applicable index plus a margin of 100 basis points, which is based on the current credit ratings of our senior unsecured debt (effective rate of 3.47% as of December 31, 2018).

On December 20, 2018, our Brazilian subsidiary entered into a non-recourse credit agreement for up to $775.0 million in the aggregate, which consists of a $600.0 million5-year secured term loan, which we refer to as the December 2023 Secured Loan, plus a $125.0 million delayed draw term loan and a $50.0 million revolving credit facility. The December 2023 Secured Loan matures on December 20, 2023. The interest rate on the December 2023 Secured Loan equals the applicable index plus a margin of 425 basis points (effective rate of 7.04% as of December 31, 2018).

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

	Global Revolving Credit Facilities (1)		Unsecured Term Loans		Senior Notes			Secured Debt		Total Debt
2019	$	—	$	375,000	$	143,338		$	644	$	518,982
2020	—		—		1,000,000			1,132		1,001,132
2021	—		—		400,000			120,000		520,000
2022	—		—		800,000			150,000		950,000
2023	1,528,592		808,120		732,620			434,000		3,503,332
Thereafter	134,564		—		4,573,580			—		4,708,144
Subtotal	$	1,663,156	$	1,183,120	$	7,649,538		$	705,776	$	11,201,590
Unamortized discount	—		—		(19,859		)	—		(19,859		)
Unamortized premium	—		—		—			148		148
Total	$	1,663,156	$	1,183,120	$	7,629,679		$	705,924	$	11,181,879

(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.