EFTA01388614.pdf

18 October 2016 REITs US REIT 3016 Earnings Preview [Figure 83: DLR's 3Q16 results preview DUI 3015 2016 3015 2016 Income INstenaere Actual Actual Actual DIM can Pre 30 Oteldecoil 30 GS& DM tem FF0/sb $1 28 S136 $137 S5 50 55 65 $5 53 Core FFO/th $1 32 $1 42 St 49 5144 65.65 S5 IS S5 73 65 70 429efatIng %Wks Actual Actual Actual DIN Pm 30 Gukleposi 30 Chlith DIM Cons Signed S leasn2 seen, (11•49) $33000 621000 Rera/CSVAlonth $259 $247 11(F new basing vOten• (kit signed) 159 39 11(F new lease renew (sired) SIN $216 INF nanawai rent zeroed (GAAP) 71% 9 5% Cob new leasing volume (ial synod) 12 26 Cob new leas* feral (sired) 6239 5229 Cob renewal rent spread (GAAP) 91% 5.2% Toral OiCifOtCY coarnaarcsaa 9300% 90.40% 9060% .1 • 50bPs 9060% Sarno-copal NO grow 220% 330% 2 5% • 40% Note Comensusestannes we based on lMmson *weed data as of 1CV 14/115 • We expect DLR to recover following 2Q's moderate leasing level. Through July, DLR had signed -$20MM of new leases • Expect above market leases in NJ and Phoenix to roll in 2H I6, resulting in negative spreads • Leasing demand from SMACC tenants Update on DLR's building an ecosystem as the company looks to benefit from Telx's product offering Plans for international expansion, specifically Japan and Germany Thoughts on further consolidation opportunities Update on the search for the Sales & Marketing leadership position following Matt Miszewski's departure We are updating estimates to reflect our expectation of a delayed exercise for a portion of the forward equity sales offering and lowering our 21116 leasing assumptions. Our 2016 Core and NAREIT FFO/sh estimates are unchanged, while FAD moves to $5.09 from $5.10. For 2017, Core and NAREIT FF0 move to $6.09 from $6.24, while FAD moves to $5.21 from $5.36. Please see Figure 98 for a summary of our estimate revisions • We are lowering our target price to $108 from 5112 as a result of our lowered estimates. Our target multiple are unchanged (18.th EBITDA and 19.6x FAD). Please see Figure 97 for details on our target price Scant Deana* Sant cones Srk Thomson Deutsche Bank Securities Inc. Page 45 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0092265 CONFIDENTIAL SDNY_GM_00238449 EFTA01388614