Sept 2016 digital realty company overview

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Global IP Traffic (2014 – 2019)

60 72

88

109

136

168

30

80

130

180

2014 2015 2016 2017 2018 2019

Mobile Data Traffic (2014 – 2020)

Exabytes Per Month

3 5

8

12

17

24

31

2

12

22

32

2014 2015 2016 2017 2018 2019 2020

Global IP Video Traffic (2014 – 2019)

Exabytes Per Month

62

76

91

110

132 135

40

80

120

160

2014 2015 2016 2017 2018 2019

Global Data Center Traffic (2014 – 2019)

Zettabytes

1.3 ZB 1.7 ZB

2.1 ZB

8.6 ZB

3.4 ZB

10.3 ZB

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3

6

9

2014 2019

Traditional Cloud

(3)

(4)

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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MW

Financial Crisis

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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E

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(1)

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

(3) (4)

(2)

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Cash RentChange

USD CAD GBP EURO JPY HKD SGD AUD

13%

5%

75%

4%

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Reconciliation of Core EBITDA

(unaudited)

(in thousands)

Three Months Ended

June 30, 2016

Net Loss ($8,185)

Income Tax Expense (Benefit) 58

Interest Expense, net 857

Depreciation & Amortization 39,996

EBITDA $32,726

Plus: Non-Cash Rent 7,740

Plus: Non-Cash Compensation 429

Plus: Transaction Expenses and Other 707

Less: Synergies (2,395)

Core EBITDA $39,207

QE 6/30/2016

Debt Service Ratio (LQA Adjusted EBITDA/GAAP interest expense plus capitalized interest)

Total GAAP interest expense 59,909

Capitalized interest 3,883

GAAP interest expense plus capitalized interest 63,792

Debt Service Ratio 4.7x

QE 6/30/2016

Fixed Charged Ratio (LQA Adjusted EBITDA/total fixed charges)

GAAP interest expense plus capitalized interest 63,792

Scheduled debt principal payments 1,241

Preferred dividends 22,424

Total fixed charges 87,457

Fixed charge ratio 3.4x

Net Debt Plus Preferred/LQA Adjusted EBITDA QE 6/30/2016

Total debt at balance sheet carrying value 6,135,406

Less: Unrestricted cash (33,241)

Net Debt as of June 30, 2016 6,102,165

Preferred Liquidation Value(iv) 1,335,000

Net Debt plus preferred 7,437,165

Net Debt Plus Preferred/LQA Adjusted EBITDA(i i i ) 6.2x

Total Debt/Total Enterprise Value

Market value of common equity(i )

16,282,694$

Liquidation value of preferred equity(i i )

1,335,000

Total debt at balance sheet carrying value 6,135,406

Total Enterprise Value 23,753,100$

Total debt / total enterprise value 25.8%

(i) Market Value of Common Equity

Common shares outstanding 146,859

Common units outstanding 2,537

Total Shares and Partnership Units 149,396

Stock price as of June 30, 2016 108.99$

Market value of common equity 16,282,694$

(ii) Liquidation value of preferred equity ($25.00 per share)

Shares O/S

Liquidation

Value

Series E Preferred 11,500 287,500

Series F Preferred 7,300 182,500

Series G Preferred 10,000 250,000

Series H Preferred 14,600 365,000

Series I Preferred 10,000 250,000

1,335,000 (iv)

Net Debt/LQA Adjusted EBITDA

QE 6/30/2016

Total debt at balance sheet carrying value 6,135,406$

Add: DLR share of unconsolidated joint venture debt 136,609

Add: Capital lease obligations -

Less: Unrestricted cash (33,241)

Net Debt as of June 30, 2016 6,238,774$

Net Debt / LQA Adjusted EBITDA(i i i ) 5.2x

(iii) Adjusted EBITDA

Net income available to common stockholders 27,951$

Interest expense 59,909

DLR share of unconsolidated joint venture interest expense 1,467

Loss from early extinguishment of debt -

Taxes 2,252

Depreciation and amortization 175,594

DLR share of unconsolidated joint venture depreciation 2,810

EBITDA 269,983$

Severance accrual and equity acceleration and legal expenses 1,508

Transactions 3,615

Loss on currency forwards 3,082

Noncontrolling interests 569

Preferred stock dividends 22,424

Adjusted EBITDA 301,181$

LQA Adjusted EBITDA (Adjusted EBITDA x 4) 1,204,723$

Note: For quarted ended June 30, 2016