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Ella Bond
6 years ago
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16 Traditional Cloud 15.3 ZB ZB 4.7 ZB 3.9 ZB 0.8 ZB 1.3 ZB

21 AT&T Network Global connectivity Network technology leadership AT&T Colocation Services from Digital Realty Digital Realty colocation capacity resold by AT&T providing wider geographic coverage and increased reach to enterprise clients Network-Enabled Colocation Services Complete solution with common processes for contracting & support Combined industry expertise Simplified customer experience

30 400 Financial Crisis

32 30.0% 30.0% 20.0% 20.0% DLR DLR 10.0% 10.0% 0.0% 0.0% (10.0%) (10.0%) (20.0%) (20.0%)

39 Extended Global Unsecured Revolving Credit Facility and Term Loan Maturities to 2021 and 2023

53 As of March 31, 2017 Share Price (As of June 7, 2017) $64.32 $ $ Total Shares and Partnership Units Equity Market Capitalization (4) $5,832 $19,347 $25,179 Preferred Equity (at Liquidation Value) $201 $865 $201 $1,066 Total Debt (at Principal Balance, including Share of JV Debt) 1,642 6,364 1,732 8,096 Less: Cash (82) (15) 82 (15) Plus: Non-OP Noncontrolling Interest 7 7 Total Enterprise Value $7,594 $26,567 $34,333 LQA Adjusted EBITDA (including Share of JV EBITDA) $341 $1,311 $18 $1,670 Net Debt / Adjusted EBITDA (5) 4.6x 4.9x 4.9x Net Debt + Preferred / Adjusted EBITDA (5) 5.2x 5.6x 5.5x Total Debt / Total Enterprise Value 21.6% 23.7% 23.6% Credit Ratings (Moody's / S&P / Fitch) Ba1 / BB / N/A Baa2 / BBB / BBB

58 1Q17 CALL CURRENT Better/ April 26, 2017 July 26, 2017 Worse 2017E 2018E Global GDP Growth Forecast (1) 2017E: 3.5% 2017E: 3.5% tu 3.5% 3.6% U.S. GDP Growth Forecast (1) 2017E: 2.3% 2017E: 2.1% q 2.1% 2.1% U.S. Unemployment Rate (2) 4.5% 4.4% q 4.4% 4.2% Inflation Rate U.S. Annual CPI Index (2) 2.4% 1.6% q 2.1% 2.1% Crude Oil ($/barrel) (3) $50 $49 q $51 $55 Control of White House, Senate and HoR (4) R,R,R R,R,R tu R,R,R R,R,R Three-Month Libor (USD) (2) 1.2% 1.3% p 1.6% 2.3% 10-Yr U.S. Treasury Yield (2) 2.3% 2.3% q 2.6% 3.1% GBP-USD (2) p EUR-USD (2) p S&P 500 (2) 2,387 (YTD 7.3%); P/E: 21.7x 2,478 (YTD 11.9%); P/E: 21.5x p 19.0x 17.0x NASDAQ 100 (2) 5,541 (YTD 14.3%); P/E: 26.4x 5,951 (YTD 23.1%); P/E: 26.1x p 21.7x 19.0x RMZ (2)(5) 1,162 (YTD 2.4%); P/E: 16.0x 1,169 (YTD 4.0%); P/E: 16.3x p 15.4x N/A IT Spending Growth Worldwide (6) 2017E: 3.3% 2017E: 3.3% tu 3.3% 3.3% Server Shipment Worldwide (7) 2017E: 4.6% 2017E: 4.0% q 4.0% 3.2% Global Data Center to Data Center IP Traffic (8) CAGR E: 32% CAGR E: 32% tu CAGR E: 32% Global Cloud IP Traffic (8) CAGR E: 30% CAGR E: 30% tu CAGR E: 30%

63 USD CAD GBP EURO JPY HKD SGD AUD

64 4Q16 / 4Q15 Revenue Growth

65 1Q17A 2Q17A Revenue Growth Operating Expense Seasonality and Dispositions Long-Term Financings 3Q17E 4Q17E

81 Total Debt/Total Enterprise Value QE 06/30/2017 Market value of common equity (i) $18,590,083 Debt Service Ratio (LQA Adjusted EBITDA/GAAP interest expense plus capitalized interest) Liquidation value of preferred equity (ii) 865,000 Total GAAP interest expense 57,582 Total debt at balance sheet carrying value 6,437,620 Capitalized interest 3,770 Total Enterprise Value $25,892,703 GAAP interest expense plus capitalized interest 61,352 Total debt / total enterprise value 24.9% Debt Service Ratio 5.4x (i) Market Value of Common Equity Common shares outstanding 162,183 Common units outstanding 2,403 Total Shares and Partnership Units 164,587 QE 06/30/2017 Stock price as of June 30, 2017 $ Fixed Charged Ratio (LQA Adjusted EBITDA/total fixed charges) Market value of common equity $18,590,083 GAAP interest expense plus capitalized interest 61,352 Scheduled debt principal payments 135 (ii) Liquidation value of preferred equity ($25.00 per share) Preferred dividends 14,505 Shares O/S Liquidation Value Total fixed charges 75, ,000 Series G Preferred 10,000 Series H Preferred 14, ,000 Fixed charge ratio 4.3x Series I Preferred 10, , ,000 (iv) Unsecured Debt/Total Debt QE 06/30/2017 Net Debt/LQA Adjusted EBITDA QE 06/30/2017 Global unsecured revolving credit facility 563,063 Total debt at balance sheet carrying value $6,437,620 Unsecured term loan 1,520,482 Add: DLR share of unconsolidated joint venture debt 152,812 Unsecured senior notes, net of discount 4,351,148 Add: Capital lease obligations 169,084 Secured Mortgage loans, net of premiums 2,927 Less: Unrestricted cash (22,383) Capital lease obligations 169,084 Net Debt as of June 30, 2017 $6,737,133 Total debt at balance sheet carrying value 6,606,704 Net Debt / LQA Adjusted EBITDA (iii) 5.1x Unsecured Debt / Total Debt 100.0% (iii) Adjusted EBITDA Net Debt Plus Preferred/LQA Adjusted EBITDA QE 06/30/2017 Net income available to common stockholders $57,837 Total debt at balance sheet carrying value 6,437,620 Interest expense 57,582 Less: Unrestricted cash (22,383) DLR share of unconsolidated joint venture interest expense 1,577 Capital lease obligations 169,084 Loss from early extinguishment of debt - DLR share of unconsolidated joint venture debt 152,812 Taxes 2,639 Net Debt as of June 30, ,737,133 Depreciation and amortization 178,111 Preferred Liquidation Value (iv) 865,000 DLR share of unconsolidated joint venture depreciation 2,754 Net Debt plus preferred 7,602,133 EBITDA 300,500 Net Debt Plus Preferred/LQA Adjusted EBITDA (iii) 5.7x Severance accrual and equity acceleration and legal expenses 365 Transactions 14,235 Gain on sale of properties (380) Equity in earnings adjustment for non-core items (3,285) Other non-core expense adjustments 24 Noncontrolling interests 920 Preferred stock dividends 14,505 Issuance costs associated with redeemed preferred stock 6,309 Adjusted EBITDA $333,193 LQA Adjusted EBITDA (Adjusted EBITDA x 4) $1,332,772 Note: For quarter ended June 30, 2017

82 Funds from operations (1) Q217 Q117 FY 2017 Q416 Q316 Q216 Q116 FY 2016 FY2015 FY2014 FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 Net income (loss) available to common stockholders $57,837 $66,145 $123,982 $77,682 $187,330 $27,951 $39,125 $332,088 $217,266 $132,721 $271,583 $171,662 $130,868 $58,339 $47,258 $26,690 $18,907 $16,950 $6,087 Noncontrolling interests in operating partnership ,711 1,154 3, ,298 4,442 2,764 5,366 6,157 6,185 3,406 3,432 2,329 3,753 12,570 8,268 Real estate related depreciation and amortization (2) 175, , , , , , , , , , , , , , , , ,265 90,932 62,171 Real estate related depreciation and amortization related to investment in unconsolidated joint venture 2,754 2,757 5,511 2,823 2,810 2,810 2,803 11,246 11,418 7,537 3,805 3,208 3,688 3,243 4,382 2,339 3, Impairment charge related to Telx trade name ,122-6,122 (Gain) on contribution of properties to unconsolidated JV (169,000) - - (168,805) (76,669) (95,404) (115,609) (Gain) loss on sale of property (380) (1,097) (1,097) (17,935) (15,945) - (2,325) (18,049) (18,096) - (Gain) on settlement of pre-existing relationship with Telx (14,355) Impairment of investments in real estate , Funds from operations (FFO) $236,028 $243,775 $479,803 $255,377 $199,496 $204,383 $208,406 $867,662 $687,896 $691,966 $636,425 $557,672 $449,288 $327,473 $252,043 $203,015 $142,810 $103,152 $76,526 Funds from operations (FFO) per diluted share $1.44 $1.50 $2.94 $1.58 $1.31 $1.36 $1.39 $5.67 $4.91 $3.63 $4.74 $4.44 $4.06 $3.39 $2.93 $2.59 $2.02 $1.61 $1.37 Net income (loss) per diluted share available to common $2.12 $1.48 stockholders $0.36 $0.41 $0.77 $0.49 $1.25 $0.19 $0.27 $2.20 $1.61 $1.39 $1.32 $0.68 $0.61 $0.41 $0.36 $0.47 $0.25 Funds from operations (FFO) $236,028 $243,775 $479,803 $255,377 $199,496 $204,383 $208,406 $867,662 $687,896 $691,966 $636,425 $557,672 $449,288 $327,473 $252,043 $203,015 $142,810 $103,152 $76,526

Funds from operations (1) Q217 Core Funds from operations (FFO) $253,335 Non real estate depreciation 3,101 Amortization of deferred financing costs 2,518 Net income (loss) available to common

85 Funds from operations (1) Q217 Core Funds from operations (FFO) $253,335 Non real estate depreciation 3,101 Amortization of deferred financing costs 2,518 Net income (loss) available to common stockholders $57,837 Noncontrolling interests in operating partnership 807 Real estate related depreciation and amortization (2) 175,010 Real estate related depreciation and amortization related to investment in unconsolidated joint venture Impairment charge related to Telx trade name (Gain) on contribution of properties to unconsolidated JV 2, Amortization of debt discount 713 Non cash compensation 5,637 Deferred compensation related to equity acceleration - Loss from early extinguishment of debt - Straight line rents, net - Non-cash straight-line rent expense adjustment - Straight-line rent revenue (2,110) Straight-line rent expense 4,343 Above and below market rent amortization (1,946) (Gain) loss on sale of property (380) (Gain) on settlement of pre-existing relationship with Telx - Impairment of investments in real estate - Funds from operations (FFO) $236,028 Funds from operations (FFO) per diluted share $1.44 Net income (loss) per diluted share available to common stockholders $0.36 Funds from operations (FFO) $236,028 Termination fees and other non-core revenues (341) Gain on insurance settlement - Gain on sale of investment - Transaction expenses 14,235 Loss from early extinguishment of debt - Issuance costs associated with redeemed preferred stock 6,309 Straight-line rent expense adjustment attributable to prior periods - Change in fair value of contingent consideration - Equity in earnings adjustment for non-core items (3,285) Severance related accrual, equity acceleration, and legal expenses 365 Bridge facility fees - Loss on currency forwards - Other non-core expense adjustments 24 Core Funds from operations (FFO) $253,335 Change in fair value of contingent consideration - Gain on sale of investment - Non-cash tax expense/(benefit) (only disclosed for ) (1,443) Capitalized leasing compensation (2,740) Recurring capital expenditures and tenant improvements - Capitalized leasing commissions - Recurring capital expenditures (only disclosed for ) (26,740) Internal leasing commissions (only disclosed for ) (1,355) Costs on redemption of preferred stock - Adjusted funds from operations (1) $233,313 (1) Funds from operations and Adjusted funds from operations for all periods presented above include the results of properties sold in 2006 and East Tufts Avenue (July 2006), 100 Technology Center Drive (March 2007) and 4055 Valley View Lane (March 2007). (2) Real estate related depreciation and amortization was computed as follows: Depreciation and amortization per income statement $178,111 Depreciation and amortization of discontinued operations - Non real estate depreciation (3,101) Impairment charge related to Telx trade name - Q217 $175,010 Weighted-average shares and units outstanding - diluted 164,027

2Q17 CALL CURRENT Better/ July 26, 2017 October 20, 2017 Worse 2017E 2018E Global GDP Growth Forecast (1) 2017E: 3.5% 2017E: 3.6% p 3.6% 3.

2Q17 CALL CURRENT Better/ July 26, 2017 October 20, 2017 Worse 2017E 2018E Global GDP Growth Forecast (1) 2017E: 3.5% 2017E: 3.6% p 3.6% 3.7% U.S. GDP Growth Forecast (1) 2017E: 2.1% 2017E: 2.2% p 2.2%