EFTA01389027.pdf

28 October 2016 REITs Digital Realty Trust Earnings highlight Figure 11 3016 earnings recap OSA 3016 Mit 3018 1011 Income StaIsitterd Actual Actual Actual Oft Cana Pre 30 Guide scot 30 Geld Me Cons FFOAll S128 S136 St 31 51 37 96 50 . Si 65 Si 45.55 50 S5 53 Cots FFOlan $132 S142 $1 44 $149 $I44 $5 66 -$5 75 55 65 -55 75 55 73 Si 70 Opliniting IWO° Actual AGNS Actual DIM Pre 30 04.160 ecet 30 Guido ON Coon Strad S leasing Volume (MWS) 533.000 623.000 5,55.452 ReneKWAAoren $259 $247 5578 TKF new know° volume OW scan) 159 39 250 TKF new lease tenth, leered/ $186 $216 $149 TKF renewal rent spread (CARP) 77% 95% 48% Cob new *nog votume (kV Signed) 12 26 26 Cob new lease rents) (signed) $239 $229 $300 Cob renews' wet sorted (GAAP) 91% 52% 38% Total oCCupency (commaix*O) 93.00% 9040% 8990% 9060% • t • Melds • iSo2oesps 9060% Simeeeptai NOI trate 220% 330% 090% 2 6% -40% 2 6% 40% Note consensus minutes are based see lhomwt ortolan &teas of 10,27/16 Signed S leasing volume excludes interconnection business in 3O15. which DLR did not capon prior to its Telx acquisition DB estimates en this I Km% reflect our pro 3016 earnings rattiness Saves Arab. air*. ea.pliny OS Martini Core FF0 behind DBe and in-line with consensus 30 Core FFO/sh of $1.44 was 5c below our estimate and in-line with consensus. The miss was driven by higher financing costs (-5c), taxes (-1c), and non-RE D&A (-lc), partially offset by higher NOI (+1c) and lower G&A (+1c). NAREIT FFO/sh of $1.31 was 6c lower than us as DLR reported transaction and preferred stock issuance costs that were lc higher than we had modeled. 2016 guidance Guidance update • Core FFO/sh guidance of $5.65-$5.75 (unchanged) • FFO/sh guidance of $5.45-$5.50 (from $5.50-$5.55) • Total revenue of $2.0-$2.26 (unchanged) • Net non-cash rent adjustments of S10-$15MM (from $10-520MM) • EBITDA margin of 56.5.58% (from 56-58%) • G&A margin 6.8-7.0% (from 6.5-7.0%) • Cash renewal spreads slightly positive and GAAP renewal spreads up high single-digits (unchanged) Year end portfolio occupancy down 150-200bps (from +1- 50bps) Dispositions of $326.5MM (from $150-$360MM) at a 7.1% cap rate (from 7-8%) Development capex of $750MM-$900MM with average stabilized yields of 10.5%-12.5% (unchanged) • Enhancements and other non-recurring capex of $5MM-$10MM (unchanged) and recurring capex and capitalized leasing costs of $95MM-$105MM (from$120MM-S130MM) • Debt issuance of $1.25-$1.75B at a 2.5-3.5% interest rate in early-to- mid 2016 (unchanged). Management noted that it could potentially Deutsche Bank Securities Inc. Page 3 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0093172 CONFIDENTIAL SDNY_GM_00239356 EFTA01389027