Company and Industry Overview * **Company**: Digital Realty Trust, Inc. (NYSE: DLR) * **Industry**: Data Center and Cloud Infrastructure * **Event**: RBC Global Communications Infrastructure Conference, September 27, 2023 Key Highlights and Trends * **Positive Outlook for 2023**: Digital Realty experienced a strong start to 2023, driven by positive fundamentals such as improved pricing power, solid demand growth, and constrained supply in various markets. * **AI Demand**: The rise of AI has further accelerated demand, particularly from larger cloud-related customers. * **Occupancy and Development**: The company aims to improve occupancy rates in its existing portfolio while developing 375 megawatts of new capacity, with a strong pre-leasing track record. * **Deleveraging Efforts**: Digital Realty has made significant progress in deleveraging its balance sheet, reducing its leverage ratio from 7x to 6.3x on a pro forma basis. * **Development Joint Ventures**: The company is exploring development joint ventures to manage capital spend and leverage, particularly in high-growth markets. * **Global Expansion**: Digital Realty is actively expanding its global footprint, with a focus on regions such as North America, EMEA, and APAC. * **Supply Chain and Power Constraints**: The company acknowledges the challenges posed by supply chain disruptions and power constraints in certain markets, but maintains a strong position in key locations. Core FFO per Share * **Deleveraging Efforts**: The company's deleveraging efforts, including asset sales and joint ventures, are expected to offset the positive fundamentals and lead to long-term stabilized growth. * **Interest Rate Risk**: The company is monitoring interest rate risk and its impact on future periods. * **Property Taxes and Power Prices**: Other external factors, such as property taxes and power prices, are also being monitored. Development Joint Ventures * **Hyperscale Development Joint Ventures**: The company is exploring hyperscale development joint ventures, initially targeting a $750 million investment. * **Geographic Focus**: These joint ventures are expected to be geographically diverse, with the potential for expansion over time. AI Demand * **North America-Oriented**: The majority of AI demand is currently focused in North America, with growing interest in EMEA and APAC. * **Data Sovereignty**: Some AI workloads may require deployment within data sovereign regions, particularly in EMEA and other country-oriented markets. Other Key Points * **Non-Core Asset Sales**: The company has successfully sold non-core assets and stabilized joint ventures, generating significant capital. * **Recycling Capital**: Digital Realty plans to continue recycling capital and diversifying its capital sources. * **Supply Chain and Power Constraints**: The company is actively managing supply chain and power constraints, particularly in power-constrained markets. * **Renewable Energy**: The company is exploring opportunities to incorporate renewable energy into its portfolio.

Financial Performance - Total operating revenues for the six months ended June 30, 2023, increased by approximately $438.3 million, or 19.3%, compared to the same period in 2022, reaching $2,704.99 million[166]. - Stabilized rental and other services revenue increased by $231.9 million, or 12.5%, for the six months ended June 30, 2023, compared to the same period in 2022[167]. - Non-stabilized rental and other services revenue increased by $195.4 million, or 48.7%, for the six months ended June 30, 2023, primarily driven by the completion of the global development pipeline and the Teraco acquisition[167]. - GAAP net income available to common stockholders for the six months ended June 30, 2023, was $166,548 thousand, compared to $116,346 thousand in 2022, reflecting an increase of $50,202 thousand[234]. - Funds from operations (FFO) available to common stockholders and unitholders for the six months ended June 30, 2023, was $950,586 thousand, compared to $917,362 thousand in 2022, indicating a year-over-year increase of $33,224 thousand[234]. - Basic FFO per share for the six months ended June 30, 2023, was $3.17, slightly up from $3.16 in 2022[234]. Occupancy Rates - As of June 30, 2023, the consolidated portfolio occupancy rate was 81.7%, down from 83.5% as of December 31, 2022[149]. - The North America data center portfolio had an occupancy rate of 84.6% as of June 30, 2023, compared to 86.3% at the end of 2022[149]. - The Europe data center portfolio occupancy rate decreased to 77.1% from 79.3% over the same period[149]. - The Asia Pacific region maintained an occupancy rate of 77.1%, up from 75.9%[149]. Debt and Financing - The company has a target debt-to-Adjusted EBITDA ratio of 5.5x and aims for a fixed charge coverage of greater than three times[145]. - The company's total outstanding debt as of June 30, 2023, was $17,856.3 million, with fixed-rate debt comprising 83.2% of the total[218]. - The effective interest rate for total debt as of June 30, 2023, was 2.86%[218]. - The company had approximately $2.2 billion of borrowings available under its Global Revolving Credit Facilities, which provide for borrowings up to $3.9 billion[209][210]. - The company anticipates that the dollar value of acquisitions for the year ending December 31, 2023, will depend on factors such as customer demand and availability of capital[207]. - The company’s consolidated debt included $2,787.8 million in variable rate debt subject to interest rate swaps, which helps mitigate interest rate exposure[239]. Capital Expenditures - The company expects to incur approximately $1.1 billion to $1.3 billion in capital expenditures for development programs during the six months ending December 31, 2023[197]. - Total capital expenditures for the six months ended June 30, 2023, were $1,266,554,000, compared to $996,215,000 for the same period in 2022, representing a year-over-year increase of approximately 27%[201]. Operating Expenses - Total property level operating expenses for the six months ended June 30, 2023, increased by $308.4 million, or 32.2%, compared to the same period in 2022, totaling $1,266.8 million[170]. - Total utilities expenses for the six months ended June 30, 2023, increased by approximately $172.7 million, or 55.2%, compared to the same period in 2022, primarily due to increased utility consumption and higher rates[171]. - Total other operating expenses increased by 12.9% to $560.6 million for the three months ended June 30, 2023, and by 11.0% to $1.11 billion for the six months ended June 30, 2023, compared to the same periods in 2022[178]. Joint Ventures and Asset Sales - A 100% interest in a non-core data center property in Dallas, Texas was sold for gross proceeds of approximately $151 million, resulting in a net gain of approximately $90 million[147]. - The company formed a joint venture with GI Partners, receiving approximately $743 million in gross proceeds from the contribution of data centers[213]. - A joint venture with TPG Real Estate was formed, resulting in approximately $1.3 billion in gross proceeds from the contribution of data centers[215]. Cash Flow - Net cash provided by operating activities increased to $814,114 thousand in the first half of 2023, up from $783,578 thousand in 2022, representing a change of $30,536 thousand[223]. - Net cash used in investing activities decreased by $148,826 thousand, primarily due to a $301,633 thousand increase in cash used for improvements to investments in real estate and a $150,771 thousand increase in cash provided by proceeds from the sale of real estate[225]. - Net cash provided by financing activities decreased by $148,759 thousand, largely due to a $1,010,673 thousand decrease in cash provided by short-term borrowings and a $319,266 thousand decrease in cash provided by proceeds from secured/unsecured debt[226]. Internal Controls and Risk Management - The company has no changes in internal control over financial reporting that materially affected its operations during the most recent fiscal quarter[244]. - The effectiveness of the company's disclosure controls and procedures was confirmed by the CEO and CFO at a reasonable assurance level[243]. - The company utilizes cross-currency interest rate swaps to hedge currency exposure associated with its net investment in foreign subsidiaries[241]. - The company does not use derivatives for trading or speculative purposes, focusing instead on risk management[238].

Financial Data and Key Metrics Changes - Total revenue increased by 20% year-over-year and 2% sequentially, with a 12% year-over-year increase excluding utility reimbursements [44][70] - Adjusted EBITDA grew by 14% year-over-year and 4% sequentially [45] - Core FFO per share was reported at $1.68, a 2% increase compared to the previous quarter [69] Business Line Data and Key Metrics Changes - New leasing during the quarter was $114 million, with 43% coming from the zero to one megawatt plus interconnection segment [9][17] - Greater than one megawatt bookings totaled $61 million, showing a significant rebound from the previous quarter [41] - Renewal leases totaled $211 million with pricing increases of 6.9% on a cash basis, marking the strongest renewal pricing in three years [68] Market Data and Key Metrics Changes - Northern Virginia saw nearly a doubling of rates over the past year due to supply constraints [18] - Churn remained low at 1.5%, with 133 new customers added, validating the stability of enterprise IT spending [10] - The backlog of signed but not yet commenced leases was $437 million at quarter end [19] Company Strategy and Development Direction - The company is focused on enhancing its customer value proposition and expanding its connectivity options [28] - There is a strong emphasis on AI and digital transformation, with ongoing collaborations on AI-focused projects [30] - The company aims to maintain a healthy balance sheet and has diversified its capital sources to support future growth [14][29] Management's Comments on Operating Environment and Future Outlook - Management noted a healthy demand for data center capacity across various regions, despite limited new supply [6] - The company remains optimistic about the second half of 2023, although there is caution due to a recent customer bankruptcy [22] - The strategic partnership with Reliance Industries in India is expected to enhance service capabilities in a growing market [15][118] Other Important Information - The company has achieved a significant milestone in its ESG initiatives, aiming for climate neutrality by 2030 [16][39] - The weighted average debt maturity is nearly five years, with a fixed interest rate of 2.7% [47] - The company has raised over $2 billion in capital through asset sales and equity issuance [72][74] Q&A Session Summary Question: What is the outlook for the development JV pipeline and funding? - Management expressed confidence in the development JV guidance and noted strong demand for these transactions [51][88] Question: How are the core operating results expected to trend in the second half of the year? - Management indicated that trends in cash mark-to-market and pricing power are expected to continue positively [78] Question: Can you provide insights on the recent uplift in rents and market dynamics? - The company was able to take back capacity from a customer and lease it at a significantly higher rate due to tight market conditions [81] Question: What is the value of data center assets available for future joint ventures? - Management estimated around $15 billion in value for potential joint venture opportunities [99] Question: How is the company addressing the customer bankruptcy situation? - The company is monitoring the situation closely and expects to have more information by the next quarterly report [96]

2Q23 Financial Results 7 HISTORICAL BOOKINGS ANNUALIZED GAAP BASE RENT Digital $ in millions 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 $0 $50 $100 $150 Transformation Driving Steady Demand Global Full-Product Spectrum Provides Broadest Solutions 2Q23 BOOKINGS 2Q23 Financial Results | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------------------------------------------------------------------|-----------------------------|----------------------------------|------- ...

Digital Realty Trust, Inc. (NYSE:DLR) REITWeek - NAREIT Conference June 6, 2022 11:45 PM ET Company Participants Andrew Power - President & CEO Chris Sharp - Chief Technology Officer Conference Call Participants Jon Petersen - Jefferies Jon Petersen All right. I think we can get started. Thanks. Thank you, everybody, for joining us today. My name is Jon Peterson. I'm the Head of REIT, research team at Jefferies. Really honored to have the Digital Realty team here with me today. For any of you that follow my ...

Financing and Debt Management - The company completed a $740 million senior unsecured term loan facility in January 2023[136] - The company has $1.1 billion available under its Global Revolving Credit Facilities as of May 1, 2023, with a total capacity of $3.9 billion[196][197] - Outstanding consolidated debt as of March 31, 2023, totaled $18.0 billion, with 81.1% being fixed-rate debt and 18.9% variable-rate debt[201] - Total outstanding debt as of March 31, 2023 was $18.0 billion, consisting of $14.6 billion in fixed rate debt (including interest rate swaps) and $3.4 billion in variable rate debt[222] - A 10% increase in interest rates would decrease the fair value of fixed rate debt by $265.4 million and increase annual interest expense on variable rate debt by $17.0 million[223] - A 10% decrease in interest rates would increase the fair value of fixed rate debt by $278.5 million and decrease annual interest expense on variable rate debt by $17.0 million[223] - Teraco secured a syndicated loan facility worth R11.8 billion ($681 million) in December 2022, with R5.7 billion ($329 million) allocated for growth and R6.1 billion ($329 million) for refinancing existing debt[199] - The company's pro-rata share of secured debt from unconsolidated entities was approximately $1,123.4 million as of March 31, 2023[203] Occupancy Rates - North America occupancy rate decreased from 86.3% in December 2022 to 84.8% in March 2023[138] - Europe occupancy rate decreased from 79.3% in December 2022 to 77.7% in March 2023[138] - Asia Pacific occupancy rate slightly decreased from 75.9% in December 2022 to 75.6% in March 2023[138] - Africa occupancy rate increased from 70.2% in December 2022 to 74.9% in March 2023[138] - Consolidated portfolio occupancy rate decreased from 83.5% in December 2022 to 82.3% in March 2023[138] - Managed Unconsolidated Portfolio occupancy rate decreased from 98.4% in December 2022 to 97.5% in March 2023[138] - Non-Managed Unconsolidated Portfolio occupancy rate decreased from 87.1% in December 2022 to 86.1% in March 2023[138] - Total portfolio occupancy rate decreased from 84.7% in December 2022 to 83.5% in March 2023[138] Revenue and Expenses - Total operating revenues increased by 18.8% to $1.34 billion in Q1 2023 compared to Q1 2022[155] - Stabilized rental and other services revenue increased by 11.4% to $1.06 billion in Q1 2023[155] - Non-stabilized rental and other services revenue increased by 59.6% to $267.7 million in Q1 2023[155] - Total utilities expenses increased by 43.6% to $346.4 million in Q1 2023[158] - Total property level operating expenses increased by 26.8% to $616.0 million in Q1 2023[158] - Depreciation and amortization increased by $39.1 million (10.2%) to $421.2 million in Q1 2023 compared to Q1 2022[166] - Total operating expenses rose by $175.3 million (17.8%) to $1.16 billion in Q1 2023[166] - Interest expense increased by $35.5 million in Q1 2023, driven by new debt issuances and higher interest rates[170] - Income tax expense increased by $8.2 million in Q1 2023 due to acquisitions and foreign jurisdiction impacts[171] - Loss from early extinguishment of debt decreased by $51.1 million in Q1 2023 compared to Q1 2022[169] Leasing and Rental Rates - The average remaining lease term as of March 31, 2023, was approximately five years[140] - Renewals signed for spaces 0-1 MW increased rental rates by 5.1% to $222 per square foot[141] - Renewals signed for spaces >1 MW increased rental rates by 11.8% to $152 per square foot[141] - New leases signed for spaces 0-1 MW achieved rental rates of $239 per square foot[141] - Northern Virginia accounted for 17.9% of total annualized rent as of March 31, 2023[146] - The aggregate amount of abatements for Q1 2023 was approximately $31.0 million[146] Capital Expenditures and Development - The company expects $1.7 billion to $1.9 billion in capital expenditures for development programs in 2023[186] - Total construction in progress and land held for future development amounted to $8.46 billion as of March 31, 2023[189] - Data center construction includes 8.8 million square feet of Turn Key Flex® and Powered Base Building® products, expected to be delivered within 12 months[190] - Capital expenditures for development projects increased to $644.9 million in Q1 2023, up from $430.9 million in Q1 2022, reflecting a 49.7% year-over-year growth[191] - Total capital expenditures (excluding indirect costs) reached $688.2 million in Q1 2023, a 42.4% increase compared to $483.1 million in Q1 2022[191] - Capitalized interest for Q1 2023 was $26.8 million, up 81.1% from $14.8 million in Q1 2022, driven by increased qualifying activities[192] Cash Flow and Financial Position - As of March 31, 2023, the company had $131.4 million in cash and cash equivalents, excluding $10.2 million in restricted cash[184] - Net cash provided by operating activities increased by 25.9% to $349.7 million in Q1 2023, compared to $277.7 million in Q1 2022[206] - Net cash used in investing activities rose to $749.0 million in Q1 2023, up 4.2% from $719.1 million in Q1 2022, primarily due to increased spending on development projects[206][209] - The company's debt-to-total enterprise value ratio was approximately 37% as of March 31, 2023, based on a closing stock price of $98.31[201] Funds from Operations (FFO) - FFO (Funds from Operations) for Q1 2023 was $484.7 million, compared to $465.4 million in Q1 2022, representing a 4.1% year-over-year increase[215] - Basic FFO per share and unit for Q1 2023 was $1.63, up from $1.60 in Q1 2022[215] - Diluted FFO per share and unit for Q1 2023 was $1.60, unchanged from Q1 2022[215] - Real estate related depreciation and amortization increased to $412.2 million in Q1 2023 from $374.2 million in Q1 2022, a 10.2% increase[215][217] Foreign Currency and Risk Management - The company has foreign currency exposure primarily to the Euro, Japanese yen, British pound sterling, Singapore dollar and South African rand[224] - The company mitigates foreign exchange risk by financing investments in local currencies and using hedging instruments like foreign currency forwards and options[224] - The company is exposed to foreign currency exchange risk, primarily to the Euro, Japanese yen, British pound sterling, Singapore dollar, and South African rand, with limited exposure to the Brazilian real[224] - The company mitigates currency fluctuation risks by financing investments in local currencies and using foreign currency forwards or options, though effectiveness is not guaranteed[224] - Changes in foreign currency exchange rates may impact the company's revenues, operating margins, distributions, and the book value of assets and stockholders' equity[224] Disclosure Controls and Procedures - Disclosure controls and procedures were deemed effective by management as of the end of Q1 2023[226][230] - The company maintains disclosure controls and procedures to ensure timely and accurate reporting under the Securities Exchange Act of 1934[225] - The company's management evaluates the cost-benefit relationship of controls and procedures, recognizing that they provide only reasonable assurance of achieving control objectives[225] - The company has investments in unconsolidated entities accounted for using the equity method, with limited disclosure controls compared to consolidated subsidiaries[225] - The company's chief executive officer and chief financial officer concluded that disclosure controls and procedures were effective at the reasonable assurance level[226] - No material changes in the company's internal control over financial reporting occurred during the most recent fiscal quarter[227] - The Operating Partnership also maintains disclosure controls and procedures similar to the company, with investments in unconsolidated entities accounted for using the equity method[229] - The Operating Partnership's chief executive officer and chief financial officer concluded that its disclosure controls and procedures were effective at the reasonable assurance level[230] Equity and Unconsolidated Entities - Equity in earnings of unconsolidated entities decreased by $46.1 million in Q1 2023 due to foreign exchange remeasurement of debt[167] - The company has investments in unconsolidated entities accounted for using the equity method, with limited disclosure controls compared to consolidated subsidiaries[225] - The Operating Partnership also maintains disclosure controls and procedures similar to the company, with investments in unconsolidated entities accounted for using the equity method[229]

Digital Realty Trust, Inc. (NYSE:DLR) Q1 2023 Earnings Conference Call April 27, 2023 5:00 PM ET Company Participants Jordan Sadler – Senior Vice President-Public and Private Investor Relations Andy Power – President and Chief Executive Officer Matt Mercier – Chief Financial Officer Greg Wright – Chief Investment Officer Chris Sharp – Chief Technology Officer Corey Dyer – Chief Revenue Officer Conference Call Participants Nick Del Deo – MoffettNathanson Jonathan Atkin – RBC Jon Petersen – Jefferies Michael ...

Table of Contents Index to Financial Statements UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2022 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period From to . Commission file number 001-32336 (Digital Realty Trust, Inc.) 000-54023 (Digital Realty Trust, L.P.) DIGITAL REALTY TRUST, I ...

Digital Realty Trust, Inc. (NYSE:DLR) Q4 2022 Earnings Conference Call February 16, 2023 5:00 PM ET Company Participants Jordan Sadler - Investor Relations Andy Power - President and Chief Executive Officer Matt Mercier - Chief Financial Officer Greg Wright - Chief Investment Officer Chris Sharp - Chief Technology Officer Corey Dyer - Chief Revenue Officer Conference Call Participants Ari Klein - BMO Capital Markets Eric Luebchow - Wells Fargo Jon Atkin - RBC Capital Markets Michael Elias - Cowen & Co Micha ...

Digital Realty Trust, Inc. (NYSE:DLR) Citi Communications, Media & Entertainment Conference January 5, 2023 1:15 PM ET Company Participants Matthew Mercier - CFO Jordan Sadler - SVP, Public & Private IR Conference Call Participants Michael Rollins - Citigroup Michael Rollins Good morning. And for those of you web-streaming, welcome back to Citi's 2023 Communications Media and Entertainment Conference. For those of you who haven't met, I'm Mike Rollins, and I cover communication services and infrastructure c ...