September 2017 digital realty company overview

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16. 0.8 ZB 1.3 ZB
3.9 ZB
14.1 ZB
4.7 ZB
15.3 ZB
–
4
8
12
16
2015 2020
Traditional Cloud
7
11
17
24
34
48
2
22
42
62
2016 2017 2018 2019 2020 2021
29
38
51
66
87
110
0
40
80
120
2016 2016 2017 2018 2019 2020
96
122
151
186
228
278
30
130
230
330
2016 2017 2018 2019 2020 2021

21. Network-Enabled
Colocation Services
• Complete solution with common
processes for contracting & support
• Combined industry expertise
• Simplified customer experience
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
AT&T
Network
• Global connectivity
• Network technology leadership

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30. Financial Crisis
0
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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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32. (20.0%)
(10.0%)
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20.0%
30.0%
0 50 100
DLR
(20.0%)
(10.0%)
0.0%
10.0%
20.0%
30.0%
0 50 100
DLR

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

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53. As of March 31, 2017
Share Price (As of June 7, 2017) $64.32 $118.02 $118.02
Total Shares and Partnership Units 90.7 163.9 49.4 213.3
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

54. ✓
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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)
1.28 1.31 p 1.28 1.31
EUR-USD (2)
1.09 1.17 p 1.14 1.15
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 2015 - 2020E: 32% CAGR 2015 - 2020E: 32% tu CAGR 2015 - 2020E: 32%
Global Cloud IP Traffic (8)
CAGR 2015 - 2020E: 30% CAGR 2015 - 2020E: 30% tu CAGR 2015 - 2020E: 30%

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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

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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 $112.95 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 75,992
Series G Preferred 10,000 250,000
Series H Preferred 14,600 365,000 Fixed charge ratio 4.3x
Series I Preferred 10,000 250,000
865,000(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 availableto 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, 2017 6,737,133
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 807 904 1,711 1,154 3,024 457 663 5,298 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) 175,010 173,447 348,457 173,523 175,332 167,043 166,912 682,810 563,729 533,823 471,280 378,970 308,547 262,485 196,971 171,657 134,265 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 3,934 796 -
Impairment charge related to Telx trade name - - - - - 6,122 - 6,122
(Gain) on contribution of properties to unconsolidated JV
- - - 195 (169,000) - - (168,805) (76,669) (95,404) (115,609) - - - - - - - -
(Gain) loss on sale of property (380) 522 142 - - - (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 - - - - - - - - - 126,470 - - - - - - - - -
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
stockholders $0.36 $0.41 $0.77 $0.49 $1.25 $0.19 $0.27 $2.20 $1.61 $1.39
$2.12 $1.48
$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

85. Funds from operations (1)
Q217
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
2,754
Impairment charge related to Telx trade name
-
(Gain) on contribution of properties to unconsolidated JV
-
(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
Core Funds from operations (FFO) $253,335
Non real estate depreciation 3,101
Amortization of deferred financing costs 2,518
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)
Change in fair value of contingent consideration -
Gain on sale of investment -
Non-cash tax expense/(benefit) (only disclosed for 2014 - 2017) (1,443)
Capitalized leasing compensation (2,740)
Recurring capital expenditures and tenant improvements -
Capitalized leasing commissions -
Recurring capital expenditures (only disclosed for 2012 - 2017) (26,740)
Internal leasing commissions (only disclosed for 2012 - 2017) (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 2007 — 7979 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:
Q217
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 -
$175,010
Weighted-average shares and units outstanding - diluted 164,027