supplementalcover3q22.jpg



 
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Financial Supplement
Table of Contents

Third Quarter 2018



Overview
PAGE
 
 
 
 
 
 
Corporate Information
 
 
 
 
 
 
Ownership Structure
 
 
 
 
 
 
Key Quarterly Financial Data
 
 
 
 
 
 
Consolidated Statements of Operations
 
 
 
 
 
 
 
Earnings Release
 
 
 
 
 
 
2018 Outlook
 
 
 
 
 
 
Consolidated Quarterly Statements of Operations
 
 
 
 
 
 
Funds From Operations and Core Funds From Operations
 
 
 
 
 
 
Adjusted Funds From Operations
 
 
 
 
 
 
Balance Sheet Information
 
 
 
 
 
 
 
Consolidated Balance Sheets
 
 
 
 
 
 
Components of Net Asset Value
 
 
 
 
 
 
Consolidated Debt Analysis and Global Unsecured Revolving Credit Facility
 
 
 
 
 
 
Debt Maturities
 
 
 
 
 
 
Debt Analysis & Covenant Compliance
 
 
 
 
 
 
Internal Growth
 
 
 
 
 
 
 
Same-Capital Operating Trend Summary
 
 
 
 
 
 
Summary of Leasing Activity - Signed
 
 
 
 
 
 
Summary of Leasing Activity - Commenced
 
 
 
 
 
 
Lease Expirations and Lease Distribution
 
 
 
 
 
 
Lease Expirations - By Product Type
 
 
 
 
 
 
Top 20 Customers by Annualized Rent
 
 
 
 
 
 
Portfolio Summary
 
 
 
 
 
 
Portfolio Overview by Product Type
 
 
 
 
 
 
Product Overview by Metropolitan Area
 
 
 
 
 
 
Occupancy Analysis
 
 
 
 
 
 
External Growth
 
 
 
 
 
 
 
Development Lifecycle - Committed Active Development
 
 
 
 
 
 
Development Lifecycle - In Service
 
 
 
 
 
 
Construction Projects in Progress
 
 
 
 
 
 
Historical Capital Expenditures and Investments in Real Estate
 
 
 
 
 
 
Development Lifecycle - Held for Development
 
 
 
 
 
 
Acquisitions / Dispositions / Joint Ventures
 
 
 
 
 
 
Unconsolidated Joint Ventures
 
 
 
 
 
 
Additional Information
 
 
 
 
 
 
 
Reconciliation of Earnings Before Interest, Taxes, Depreciation & Amortization and Financial Ratios
 
 
 
 
 
 
Management Statements on Non-GAAP Measures
38
 
 
 
 
 
 
Forward-Looking Statements




 
image40a01a01a06.jpg      
Financial Supplement
Corporate Information
Third Quarter 2018



Corporate Profile
Digital Realty Trust, Inc. owns, acquires, develops and operates data centers. The company is focused on providing data center, colocation and interconnection solutions for domestic and international customers across a variety of industry verticals ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare, and consumer products. As of September 30, 2018, the company's 198 data centers, including 18 data centers held as investments in unconsolidated joint ventures, contain applications and operations critical to the day-to-day operations of technology industry and corporate enterprise data center customers. Digital Realty's portfolio is comprised of approximately 27.9 million square feet, excluding approximately 3.6 million square feet of space under active development and 1.8 million square feet of space held for future development, located throughout North America, Europe, Asia and Australia. For additional information, please visit the company's website at www.digitalrealty.com.

Corporate Headquarters
Four Embarcadero Center, Suite 3200
San Francisco, California 94111
Telephone: (415) 738-6500
Website: www.digitalrealty.com

Senior Management
A. William Stein: Chief Executive Officer
Andrew P. Power: Chief Financial Officer
Chris Sharp: Chief Technology Officer
Erich Sanchack: Executive Vice President, Operations

Investor Relations
To request more information or to be added to our e-mail distribution list, please visit our website: www.digitalrealty.com
(Please proceed to the Investor Relations section)

 
Analyst Coverage
 
 
 
 
 
 
 
 
 
 
 
Bank of America
 
 
 
 
 
 
BMO Capital Markets
 
Merrill Lynch
 
Barclays Capital
 
Berenberg
 
Citigroup
Ari Klein
 
Michael Funk
 
Ross Smotrich
 
Nate Crossett
 
Michael Rollins
(212) 885-4103
 
(646) 855-5664
 
(212) 526-2306
 
(646) 949-9030
 
(212) 816-1116
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
Cowen & Company
 
Credit Suisse
 
Deutsche Bank
 
Green Street Advisors
 
Guggenheim Securities
Colby Synesael
 
Sami Badri
 
Matthew Niknam
 
Lukas Hartwich
 
Robert Gutman
(646) 562-1355
 
(212) 538-1727
 
(212) 250-4711
 
(949) 640-8780
 
(212) 518-9148
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
J.P. Morgan
 
Jefferies
 
KeyBanc Capital
 
MoffettNathanson
 
Morgan Stanley
Richard Choe
 
Jonathan Petersen
 
Jordan Sadler
 
Nick Del Deo
 
Simon Flannery
(212) 662-6708
 
(212) 284-1705
 
(917) 368-2280
 
(212) 519-0025
 
(212) 761-6432
 
 

 
 
 

 

 
 
 
 
 
 

 

Morningstar
 
New Street Research
 
RBC Capital Markets
 
Raymond James
 
Robert W. Baird
Matthew Dolgin
 
Spencer Kurn
 
Jonathan Atkin
 
Frank Louthan
 
David Rodgers
(312) 696-6783
 
(212) 921-2067
 
(415) 633-8589
 
(404) 442-5867
 
(216) 737-7341
 
 
 
 
 
 
 
 
 

 

 

 

 
 
Stifel
 
SunTrust
 
UBS
 
Wells Fargo
 
William Blair
Erik Rasmussen
 
Gregory Miller
 
John Hodulik
 
Jennifer Fritzsche
 
James Breen
(212) 271-3461
 
(212) 303-4169
 
(212) 713-4226
 
(312) 920-3548
 
(617) 235-7513
 
 

 
 
 

 
 
 
 

 

 

 
 


This Earnings Press Release and Supplemental Information package supplements the information provided in our quarterly and annual reports filed with the Securities and Exchange Commission. Additional information about us and our data centers is also available on our website at www.digitalrealty.com.

3


 
image40a01a01a06.jpg
Financial Supplement
Corporate Information (Continued)

Third Quarter 2018



Stock Listing Information

The stock of Digital Realty Trust, Inc. is traded primarily on the New York Stock Exchange under the following symbols:
Common Stock:
 
DLR
Series C Preferred Stock:
 
DLRPRC
Series G Preferred Stock:
 
DLRPRG
Series H Preferred Stock:
 
DLRPRH
Series I Preferred Stock:
 
DLRPRI
Series J Preferred Stock:
 
DLRPRJ

Symbols may vary by stock quote provider.

Credit Ratings
Standard & Poors
 
 
 
Corporate Credit Rating:
 
BBB
(Positive Outlook)
Preferred Stock:
 
BB+
 
 
 
 
 
Moody's
 
 
 
Issuer Rating:
 
Baa2
(Stable Outlook)
Preferred Stock:
 
Baa3
 
 
 
 
 
Fitch
 
 
 
Issuer Default Rating:
 
BBB
(Stable Outlook)
Preferred Stock:
 
BB+
 

These credit ratings may not reflect the potential impact of risks relating to the structure or trading of the company’s securities and are provided solely for informational purposes. Credit ratings are not recommendations to buy, hold or sell any security, and may be revised or withdrawn at any time by the issuing rating agency at its sole discretion. The company does not undertake any obligation to maintain the ratings or to advise of any change in ratings. Each agency’s rating should be evaluated independently of any other agency’s rating. An explanation of the significance of the ratings may be obtained from each of the rating agencies.
 

Common Stock Price Performance

The following summarizes recent activity of Digital Realty's common stock (DLR):
 
Three Months Ended
 
30-Sep-18

30-Jun-18

31-Mar-18

31-Dec-17

30-Sep-17

High price

$125.10


$112.07


$115.08


$124.16


$127.23

Low price

$110.80


$100.50


$96.56


$109.19


$108.73

Closing price, end of quarter

$112.48


$111.58


$105.38


$113.90


$118.33

Average daily trading volume
1,192,244

1,121,334

1,565,456

1,206,103

1,405,287

Indicated dividend per common share (1)

$4.04


$4.04


$4.04


$3.72


$3.72

Closing annual dividend yield, end of quarter
3.6
%
3.6
%
3.8
%
3.3
%
3.1
%
Shares and units outstanding, end of quarter (2)
214,607,642

214,553,149

214,611,402

213,959,395

213,916,456

Closing market value of shares and units outstanding (3)

$24,139,068


$23,939,840


$22,615,749


$24,369,975


$25,312,734


(1)
On an annualized basis.
(2)
As of September 30, 2018, the total number of shares and units includes 206,267,055 shares of common stock, 6,411,484 common units held by third parties and 1,929,103 common units and vested and unvested long-term incentive units held by directors, officers and others and excludes all shares of common stock potentially issuable upon conversion of our series C, series G, series H, series I, and series J cumulative redeemable preferred stock upon certain change of control transactions. Also excludes 9,775,000 shares of common stock that may be issued upon full physical settlement of the September 2018 forward sales agreements.
(3)
Dollars in thousands as of the end of the quarter.
This Earnings Press Release and Supplemental Information package supplements the information provided in our quarterly and annual reports filed with the Securities and Exchange Commission. Additional information about us and our data centers is also available on our website at www.digitalrealty.com.

4


Ownership Structure
image40a01a01a06.jpg
Financial Supplement
As of September 30, 2018
Third Quarter 2018



ownershipflowchartoct2018.jpg
Partner

# of Units (1)
 
% Ownership
Digital Realty Trust, Inc.
 
206,267,055

 
96.1
%
Third-Party Unitholders
 
6,411,484

 
3.0
%
Directors, Officers and Others (2)
 
1,929,103

 
0.9
%
Total

214,607,642

 
100.0
%


(1)
The total number of units includes 206,267,055 general partnership common units, 6,411,484 common units held by third parties and 1,929,103 common units and vested and unvested long-term incentive units held by directors, officers and others, and excludes all shares of common stock potentially issuable upon conversion of our series C, series G, series H, series I, and series J cumulative redeemable preferred stock upon certain change of control transactions. Also excludes 9,775,000 shares of common stock that may be issued upon full physical settlement of the September 2018 forward sales agreements.
(2)
Reflects limited partnership interests held by our directors, officers and others in the form of common units, and vested and unvested long-term incentive units.


5


Key Quarterly Financial Data
image40a01a01a07.jpg    
Financial Supplement
Unaudited and Dollars in Thousands, Except Per Share Data
Third Quarter 2018



Shares and Units at End of Quarter
30-Sep-18
30-Jun-18
31-Mar-18
31-Dec-17
30-Sep-17
Common shares outstanding
206,267,055

206,055,117

205,874,914

205,470,300

205,433,495

Common units outstanding
8,340,587

8,498,032

8,736,488

8,489,095

8,482,961

Total Shares and Partnership Units
214,607,642

214,553,149

214,611,402

213,959,395

213,916,456

 
 
 
 
 
 
Enterprise Value
 
 
 
 
 
Market value of common equity (1)
$24,139,068
$23,939,840
$22,615,749
$24,369,975
$25,312,734
Liquidation value of preferred equity
1,266,250

1,266,250

1,266,250

1,266,250

1,266,250

Total debt at balance sheet carrying value
9,179,871

9,106,084

9,147,712

8,648,618

8,484,244

Total Enterprise Value
$34,585,189
$34,312,174
$33,029,711
$34,284,843
$35,063,228
Total debt / total enterprise value
26.5
%
26.5
%
27.7
%
25.2
%
24.2
%
 
 
 
 
 
 
Selected Balance Sheet Data
 
 
 
 
 
Investments in real estate (before depreciation)
$17,981,293
$17,722,610
$17,528,976
$17,079,413
$16,535,694
Total Assets
21,462,110

21,411,423

21,581,917

21,404,345

21,232,498

Total Liabilities
10,681,095

10,561,690

10,595,502

10,300,993

9,994,566

 
 
 
 
 
 
Selected Operating Data
 
 
 
 
 
Total operating revenues
$768,924
$754,919
$744,368
$731,445
$609,925
Total operating expenses
629,859

610,857

600,555

614,247

543,768

Interest expense
80,851

78,810

76,985

73,989

71,621

Net income (loss)
90,264

88,159

110,095

79,658

12,476

Net income (loss) available to common stockholders
67,268

65,134

86,298

53,306

(4,139)

 
 
 
 
 
 
Financial Ratios
 
 
 
 
 
EBITDA (2)
$444,508
$444,853
$461,446
$415,813
$296,892
Adjusted EBITDA (3)
453,467

458,130

450,813

428,311

351,904

Net Debt to Adjusted EBITDA (4)
5.2x

5.2x

5.3x

5.2x

6.0x

GAAP interest expense
80,851

78,810

76,985

73,989

71,621

Fixed charges (5)
111,055

107,401

104,892

102,504

93,619

Interest coverage ratio (6)
5.0x

5.3x

5.3x

5.2x

4.8x

Fixed charge coverage ratio (7)
4.1x

4.3x

4.3x

4.2x

3.9x

 
 
 
 
 
 
Profitability Measures
 
 
 
 
 
Net income (loss) per common share - basic
$0.33
$0.32
$0.42
$0.26
($0.02)
Net income (loss) per common share - diluted
$0.33
$0.32
$0.42
$0.26
($0.02)
Funds from operations (FFO) / diluted share and unit (8)
$1.57

$1.64

$1.61

$1.48

$1.23

Core funds from operations (Core FFO) / diluted share and unit (8)
$1.63

$1.66

$1.63

$1.55

$1.51

Adjusted funds from operations (AFFO) / diluted share and unit (9)
$1.54

$1.55

$1.53

$1.35

$1.37

Dividends per share and common unit
$1.01

$1.01

$1.01

$0.93

$0.93

Diluted FFO payout ratio (8) (10)
64.2
%
61.5
%
62.8
%
62.9
%
75.5
%
Diluted Core FFO payout ratio (8) (11)
62.0
%
60.8
%
62.0
%
60.0
%
61.6
%
Diluted AFFO payout ratio (9) (12)
65.4
%
65.4
%
66.0
%
68.7
%
68.1
%
 
 
 
 
 
 
Portfolio Statistics
 
 
 
 
 
Data Centers (13)
198

198

199

198

193

Cross-connects
77,000

76,000

75,000

74,000

73,000

Net rentable square feet, excluding development space (13)
27,918,778

27,847,819

27,115,634

26,588,569

26,056,085

Occupancy at end of quarter (14)
89.5
%
89.4
%
89.2
%
90.2
%
90.8
%
Occupied square footage
25,001,127

24,906,210

24,195,848

23,991,756

23,659,177

Space under active development (15)
3,634,830

3,325,092

3,629,821

2,700,156

2,759,858

Space held for development (16)
1,816,366

1,455,841

1,532,682

1,645,175

1,636,300

Weighted average remaining lease term (years) (17)
4.5

4.7

4.9

4.9

5.1

Same-capital occupancy at end of quarter (14) (18)
88.4
%
88.7
%
88.7
%
89.8
%
90.1
%




6


Key Quarterly Financial Data
image40a01a01a07.jpg    
Financial Supplement
Unaudited and Dollars in Thousands, Except Per Share Data
Third Quarter 2018



(1)
The market value of common equity is based on the closing stock price at the end of the quarter and assumes 100% redemption of the limited partnership units in our operating partnership, including common units and vested and unvested long-term incentive units, for shares of our common stock. Excludes shares of common stock potentially issuable upon conversion of our series C, series G, series H, series I, and series J cumulative redeemable preferred stock upon certain change of control transactions, as applicable.
(2)
EBITDA is calculated as earnings before interest expense, loss from early extinguishment of debt, tax expense, depreciation and amortization and impairment of investments in real estate. For a discussion of EBITDA, see page 38. For a reconciliation of net income available to common stockholders to EBITDA, see page 37.
(3)
Adjusted EBITDA is EBITDA excluding severance-related expense, equity acceleration, and legal expenses, transaction and integration expenses, (gain) loss on real estate transactions, equity in earnings adjustment for non-core items, other non-core expense adjustments, non-controlling interests, preferred stock dividends, including undeclared dividends, and issuance costs associated with redeemed preferred stock. For a discussion of Adjusted EBITDA, see page 38. For a reconciliation of net income available to common stockholders to Adjusted EBITDA, see page 37.
(4)
Net Debt to Adjusted EBITDA is calculated as total debt at balance sheet carrying value (see page 6), plus capital lease obligations, plus our share of joint venture debt, less unrestricted cash and cash equivalents, divided by the product of Adjusted EBITDA (inclusive of our share of joint venture EBITDA), multiplied by four. For the quarter ended September 30, 2017, Net Debt to Adjusted EBITDA includes all of the debt associated with the DuPont Fabros merger while the annualized third quarter Adjusted EBITDA includes only 17 days of DuPont Fabros operations during the quarter.
(5)
Fixed charges consist of GAAP interest expense, capitalized interest, scheduled debt principal payments and preferred dividends.
(6)
Interest coverage ratio is Adjusted EBITDA divided by GAAP interest expense plus capitalized interest.
(7)
Fixed charge coverage ratio is Adjusted EBITDA divided by fixed charges.
(8)
For definitions and discussion of FFO and core FFO, see page 38. For reconciliations of net income available to common stockholders to FFO and core FFO, see page 13.
(9)
For a definition and discussion of AFFO, see page 38. For a reconciliation of core FFO to AFFO, see page 14.
(10)
Diluted FFO payout ratio is dividends declared per common share and unit divided by diluted FFO per share and unit.
(11)
Diluted core FFO payout ratio is dividends declared per common share and unit divided by diluted core FFO per share and unit.
(12)
Diluted AFFO payout ratio is dividends declared per common share and unit divided by diluted AFFO per share and unit.
(13)
Includes buildings held as investments in unconsolidated joint ventures. Excludes buildings held-for-sale.
(14)
Occupancy and same-capital occupancy exclude space under active development and space held for development. Occupancy represents our consolidated portfolio in addition to our managed portfolio of unconsolidated joint ventures and non-managed unconsolidated joint ventures. For some of our buildings, we calculate occupancy based on factors in addition to contractually leased square feet, including available power, required support space and common area. Excludes buildings held-for-sale.
(15)
Space under active development includes current Base Building and Data Centers projects in progress (see page 30). Excludes buildings held-for-sale.
(16)
Space held for development includes space held for future Data Center development, and excludes space under active development (see page 34). Excludes buildings held-for-sale.
(17)
Weighted average remaining lease term excludes renewal options and is weighted by net rentable square feet.
(18)
Represents buildings owned as of December 31, 2016 with less than 5% of total rentable square feet under development. Excludes buildings that were undergoing, or were expected to undergo, development activities in 2017-2018, buildings classified as held-for-sale, and buildings sold or contributed to joint ventures for all periods presented. Prior period results have been adjusted to reflect current same-capital pool.


7


Digital Realty Trust
image40a01a01a07.jpg    
 
Earnings Release
Third Quarter 2018




DIGITAL REALTY REPORTS THIRD QUARTER 2018 RESULTS

San Francisco, CA — October 25, 2018 — Digital Realty (NYSE: DLR), a leading global provider of data center, colocation and interconnection solutions, announced today financial results for the third quarter of 2018. All per-share results are presented on a fully-diluted share and unit basis.

Highlights
Reported net income available to common stockholders of $0.33 per share in 3Q18, compared to ($0.02) in 3Q17
Reported FFO per share of $1.57 in 3Q18, compared to $1.23 in 3Q17
Reported core FFO per share of $1.63 in 3Q18, compared to $1.51 in 3Q17
Signed total bookings during 3Q18 expected to generate $69 million of annualized GAAP rental revenue, including an $8 million contribution from interconnection
Reiterated 2018 core FFO per share outlook of $6.55 - $6.65

Financial Results
Digital Realty reported revenues for the third quarter of 2018 of $769 million, a 2% increase from the previous quarter and a 26% increase from the same quarter last year.
The company delivered third quarter of 2018 net income of $90 million, and net income available to common stockholders of $67 million, or $0.33 per diluted share, compared to $0.32 per diluted share in the previous quarter and ($0.02) per diluted share in the same quarter last year.
Digital Realty generated third quarter of 2018 adjusted EBITDA of $453 million, a 1% decrease from the previous quarter and a 29% increase over the same quarter last year.
The company reported third quarter of 2018 funds from operations of $338 million, or $1.57 per share, compared to $1.64 per share in the previous quarter and $1.23 per share in the same quarter last year.
Excluding certain items that do not represent core expenses or revenue streams, Digital Realty delivered third quarter of 2018 core FFO of $1.63 per share, a 2% decrease from $1.66 per share in the previous quarter, and an 8% increase from $1.51 per share in the same quarter last year.

Leasing Activity
“In the third quarter, we signed total bookings expected to generate $69 million of annualized GAAP rental revenue, including an $8 million contribution from interconnection,” said Chief Executive Officer A. William Stein. “This represents the second-highest bookings in the company's history, close on the heels of our record in the prior quarter.  We also announced our entry into the rapidly growing Brazilian market, and we took proactive steps to secure our supply chain and further strengthen our balance sheet.  We look forward to building on this momentum in the months ahead, setting the stage for sustainable growth into 2019 and beyond.”  
The weighted-average lag between leases signed during the third quarter of 2018 and the contractual commencement date was five months.
In addition to new leases signed, Digital Realty also signed renewal leases representing $61 million of annualized GAAP rental revenue during the quarter. Rental rates on renewal leases signed during the third quarter of 2018 rolled up 0.2% on a cash basis and up 1.6% on a GAAP basis.

8


Digital Realty Trust
image40a01a01a07.jpg    
 
Earnings Release
Third Quarter 2018




New leases signed during the third quarter of 2018 by region and product type are summarized as follows:
 
 
Annualized GAAP
 
 
 
 
 
 
 
 
 
 
 
Base Rent
 
 
 
GAAP Base Rent
 
 
 
 
GAAP Base Rent
North America
 
(in thousands)
 
Square Feet
 
per Square Foot
 
Megawatts
 
per Kilowatt
Turn-Key Flex
 

$40,958

 
330,137

 

$124

 
33.3

 
 

$103

Colocation
 
8,527

 
45,081

 
189

 
2.4

 
 
294

Non-Technical
 
978

 
53,916

 
18

 

 
 

Total
 

$50,463

 
429,134

 

$118

 
35.7

 
 

$116

 
 
 
 
 
 
 
 
 
 
 
 
Europe (1)
 
 
 
 
 
 
 
 
 
 
 
Turn-Key Flex
 

$5,076

 
32,431

 

$157

 
3.3

 
 

$130

Colocation
 
1,800

 
1,869

 
963

 
0.4

 
 
353

Non-Technical
 
51

 
1,715

 
30

 

 
 

  Total
 

$6,927

 
36,015

 

$192

 
3.7

 
 

$155

 
 
 
 
 
 
 
 
 
 
 
 
Asia Pacific (1)
 
 
 
 
 
 
 
 
 
 
 
Turn-Key Flex
 

$4,163

 
23,300

 

$179

 
2.4

 
 

$146

  Total
 

$4,163

 
23,300

 

$179

 
2.4

 
 

$146

 
 
 
 
 
 
 
 
 
 
 
 
Interconnection
 

$7,610

 
N/A

 
N/A

 
N/A

 
 
N/A

 
 
 
 
 
 
 
 
 
 
 
 
Grand Total
 

$69,163

 
488,449

 

$126

 
41.7

 
 

$121


Note: Totals may not foot due to rounding differences.
(1)    Based on quarterly average exchange rates during the three months ended September 30, 2018.

Investment Activity
During the third quarter of 2018, Digital Realty closed on the sale of 360 Spear Street, a 155,000 square foot data center in San Francisco, California, for $92 million. The facility was 39% leased and was expected to generate cash net operating income of approximately $2 million in 2018, representing a nominal exit cap rate of 1.9%. The sale generated net proceeds of $91 million, and Digital Realty recognized a gain on the sale of approximately $27 million in the third quarter of 2018.
Likewise during the third quarter of 2018, Digital Realty acquired three separate sites in Manassas, Virginia, Sterling, Virginia and Sydney, Australia, totaling 51.5 acres for a combined investment of $40 million, or approximately $773,000 per acre. The three sites are expected to support the development of approximately 138 megawatts of critical power. Digital Realty also entered into an agreement to acquire 424 acres of undeveloped land in Loudoun County, Virginia for a purchase price of $236.5 million, or approximately $558,000 per acre. The site is adjacent to Washington Dulles International Airport and located near bulk transmission lines as well as a major fiber path. The site is also located less than four miles from Digital Realty's existing data center campuses in Ashburn, Virginia. Commencement of development on these various land parcels will be subject to market demand, and delivery will be phased to meet future growth requirements upon build-out and lease-up of the company's existing campuses in Northern Virginia and Sydney, Australia.
Likewise during the third quarter of 2018, Digital Realty entered into a definitive agreement to acquire Ascenty, the leading data center provider in Brazil, from private equity firm Great Hill Partners in a transaction valued at approximately $1.8 billion. Digital Realty separately entered into an independent bilateral equity commitment letter with Brookfield Infrastructure, an affiliate of Brookfield Asset Management, one of the largest owners and operators of infrastructure assets globally, under which Brookfield has committed to fund half of the required initial equity investment, currently estimated to be approximately $613 million, excluding Brookfield’s share of the transaction costs, in exchange for 49% of the total equity interests in a joint venture entity expected to ultimately own Ascenty. The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2018.
Balance Sheet
Digital Realty had approximately $9.2 billion of total debt outstanding as of September 30, 2018, comprised of $9.1 billion of unsecured debt and approximately $0.1 billion of secured debt. At the end of the third quarter of 2018, net debt-to-adjusted EBITDA was 5.2x, debt-plus-preferred-to-total enterprise value was 30.2% and fixed charge coverage was 4.1x.
During the third quarter, Digital Realty executed an offering of 9,775,000 shares of common stock (including 1,275,000 shares from the exercise in full of the underwriters' over-allotment option) at a price of $113.00 per share, subject to forward sale agreements. The company expects to receive net proceeds of approximately $1.1 billion (net of fees and estimated expenses) upon full physical settlement of the forward sale agreements, expected to be no later than September 27, 2019.
Subsequent to quarter-end, Digital Realty closed a £400 million pound sterling-denominated bond offering of 12-year senior unsecured notes at 3.750% per annum.
Likewise subsequent to quarter-end, Digital Realty completed the refinancing of its global credit facilities. The combined facilities total $3.3 billion, comprised of a $2.35 billion global revolving credit facility and approximately $916 million of multi-currency term loans. The company

9


Digital Realty Trust
image40a01a01a07.jpg    
 
Earnings Release
Third Quarter 2018




also completed a five-year, ¥33.3 billion (approximately $300 million) Japanese yen-denominated revolving credit facility. In conjunction with the refinancing, pricing for the global revolving credit facility was tightened by 10 basis points at the company's BBB / Baa2 senior unsecured debt rating, the maturity date was extended by three years and total availability was expanded by $350 million. The refinancing provides funds for acquisitions, development, debt repayment, working capital and general corporate purposes.

2018 Outlook
Digital Realty reiterated its 2018 core FFO per share outlook of $6.55 - $6.65. The assumptions underlying this guidance are summarized in the following table.
 
As of
As of
As of
As of
As of
Top-Line and Cost Structure
January 8, 2018
February 15, 2018
April 26, 2018
July 26, 2018
October 25, 2018
   2018 total revenue
$3.0 - $3.2 billion
$3.0 - $3.2 billion
$3.0 - $3.2 billion
$3.0 - $3.2 billion
$3.0 - $3.2 billion
   2018 net non-cash rent adjustments (1)
($5 - $15 million)
($5 - $15 million)
($5 - $15 million)
($5 - $15 million)
($5 - $15 million)
   2018 Adjusted EBITDA margin
58.0% - 60.0%
58.0% - 60.0%
58.0% - 60.0%
58.0% - 60.0%
58.0% - 60.0%
   2018 G&A margin
5.5% - 6.5%
5.5% - 6.5%
5.5% - 6.5%
5.5% - 6.5%
5.5% - 6.5%
 
 
 
 
 
 
Internal Growth
 
 
 
 
 
   Rental rates on renewal leases
 
 
 
 
 
      Cash basis
Slightly negative
Slightly negative
Slightly negative
Slightly negative
Slightly negative
      GAAP basis
Up mid-single-digits
Up mid-single-digits
Up mid-single-digits
Up mid-single-digits
Up mid-single-digits
   Year-end portfolio occupancy
+/- 50 bps
+/- 50 bps
+/- 50 bps
+/- 50 bps
+/- 50 bps
   "Same-capital" cash NOI growth (2)
0% - 3.0%
0% - 3.0%
1.0% - 3.0%
1.0% - 3.0%
1.0% - 3.0%
 
 
 
 
 
 
   Foreign Exchange Rates
 
 
 
 
 
      U.S. Dollar / Pound Sterling
$1.28 - $1.32
$1.28 - $1.32
$1.35 - $1.40
$1.30 - $1.35
$1.30 - $1.35
      U.S. Dollar / Euro
$1.10 - $1.20
$1.10 - $1.20
$1.18 - $1.22
$1.15 - $1.20
$1.15 - $1.20
 
 
 
 
 
 
External Growth
 
 
 
 
 
   Dispositions
 
 
 
 
 
   Dollar volume
$0 - $200 million
$88 - $200 million
$187 - $300 million
$199 - $300 million
$292 million
   Cap rate
0.0% - 10.0%
0.0% - 10.0%
0.0% - 10.0%
0.0% - 10.0%
0.0% - 10.0%
   Development
 
 
 
 
 
   CapEx
$0.9 - $1.1 billion
$0.9 - $1.1 billion
$0.9 - $1.1 billion
$1.0 - $1.2 billion
$1.2 - $1.4 billion
   Average stabilized yields
10.0% - 12.0%
10.0% - 12.0%
10.0% - 12.0%
10.0% - 12.0%
10.0% - 12.0%
   Enhancements and other non-recurring CapEx (3)
$25 - $30 million
$25 - $30 million
$25 - $30 million
$25 - $30 million
$25 - $30 million
   Recurring CapEx + capitalized leasing costs (4)
$160 - $170 million
$160 - $170 million
$160 - $170 million
$160 - $170 million
$160 - $170 million
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
    Long-term debt issuance
 
 
 
 
 
   Dollar amount
$0 - $500 million
$0 - $500 million
$0 - $500 million
$650 million - $1 billion
$1.2 - $1.8 billion
   Pricing
3.25% - 4.25%
3.25% - 4.25%
3.25% - 4.25%
3.25% - 4.50%
3.25% - 4.50%
   Timing
Mid-to-late 2018
Mid-to-late 2018
Mid-to-late 2018
Mid-to-late 2018
Mid-to-late 2018
 
 
 
 
 
 
 
 
 
 
 
 
Net income per diluted share
$1.50 - $1.55
$1.50 - $1.55
$1.55 - $1.55
$1.55 - $1.60
$1.55 - $1.60
Real estate depreciation and (gain)/loss on sale
$4.90 - $4.95
$4.90 - $4.95
$4.90 - $4.95
$4.95 - $4.95
$4.95 - $4.95
Funds From Operations / share (NAREIT-Defined)
$6.40 - $6.50
$6.40 - $6.50
$6.45 - $6.50
$6.50 - $6.55
$6.50 - $6.55
Non-core expenses and revenue streams
$0.05 - $0.10
$0.05 - $0.10
$0.05 - $0.10
$0.05 - $0.10
$0.05 - $0.10
Core Funds From Operations / share
$6.45 - $6.60
$6.45 - $6.60
$6.50 - $6.60
$6.55 - $6.65
$6.55 - $6.65

(1)
Net non-cash rent adjustments represent the sum of straight-line rental revenue, straight-line rent expense as well as the amortization of above- and below-market leases (i.e., FAS 141 adjustments).
(2)
The "same-capital" pool includes buildings owned as of December 31, 2016 with less than 5% of the total rentable square feet under development. It also excludes buildings that were undergoing, or were expected to undergo, development activities in 2017-2018, buildings classified as held for sale, and buildings sold or contributed to joint ventures for all periods presented.
(3)
Other non-recurring CapEx represents costs incurred to enhance the capacity or marketability of operating data centers, such as network fiber initiatives and software development costs.
(4)
Recurring CapEx represents non-incremental improvements required to maintain current revenues, including second-generation tenant improvements and leasing commissions. Capitalized leasing costs include capitalized leasing compensation as well as capitalized internal leasing commissions.

10


Digital Realty Trust
image40a01a01a07.jpg    
 
Earnings Release
Third Quarter 2018




Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, including FFO, core FFO, and Adjusted EBITDA. A reconciliation from U.S. GAAP net income available to common stockholders to FFO, a reconciliation from FFO to core FFO, and definitions of FFO, and core FFO are included as an attachment to this document. A reconciliation from U.S. GAAP net income available to common stockholders to Adjusted EBITDA, a definition of Adjusted EBITDA and definitions of net debt-to-Adjusted EBITDA, debt-plus-preferred-to-total enterprise value, cash NOI, and fixed charge coverage ratio are included as an attachment to this document.

Investor Conference Call
Prior to Digital Realty’s investor conference call at 5:30 p.m. EDT / 2:30 p.m. PDT on October 25, 2018, a presentation will be posted to the Investors section of the company’s website at http://investor.digitalrealty.com. The presentation is designed to accompany the discussion of the company's third quarter 2018 financial results and operating performance. The conference call will feature Chief Executive Officer A. William Stein and Chief Financial Officer Andrew P. Power.
To participate in the live call, investors are invited to dial (888) 317-6003 (for domestic callers) or (412) 317-6061 (for international callers) and reference the conference ID# 0813657 at least five minutes prior to start time. A live webcast of the call will be available via the Investors section of Digital Realty’s website at http://investor.digitalrealty.com.
Telephone and webcast replays will be available after the call until November 27, 2018. The telephone replay can be accessed by dialing (877) 344-7529 (for domestic callers) or (412) 317-0088 (for international callers) and providing the conference ID# 10124567. The webcast replay can be accessed on Digital Realty’s website.

About Digital Realty
Digital Realty supports the data center, colocation and interconnection strategies of more than 2,300 firms across its secure, network-rich portfolio of data centers located throughout North America, Europe, Asia and Australia. Digital Realty's clients include domestic and international companies of all sizes, ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare, and consumer products.

Contact Information
Andrew P. Power
Chief Financial Officer
Digital Realty
(415) 738-6500
John J. Stewart / Maria S. Lukens
Investor Relations
Digital Realty
(415) 738-6500


11


Consolidated Quarterly Statements of Operations
image40a01a01a06.jpg
Financial Supplement
Unaudited and in Thousands, Except Share and Per Share Data
Third Quarter 2018




 
Three Months Ended
 
Nine Months Ended
 
30-Sep-18
30-Jun-18
31-Mar-18
31-Dec-17
30-Sep-17
 
30-Sep-18
30-Sep-17
Rental revenues

$541,073


$534,556


$530,925


$517,356


$440,591

 

$1,606,554


$1,257,293

Tenant reimbursements - Utilities
105,822

100,084

98,576

97,657

78,134

 
304,482

209,939

Tenant reimbursements - Other
57,282

55,639

51,503

54,324

29,479

 
164,424

78,304

Interconnection & other
62,760

61,770

61,373

60,275

59,851

 
185,903

175,377

Fee income
1,469

2,343

1,133

1,386

1,662

 
4,945

4,986

Other
518

527

858

447

208

 
1,903

584

Total Operating Revenues
$768,924
$754,919
$744,368
$731,445
$609,925
 
$2,268,211
$1,726,483
 
 
 
 
 
 
 
 
 
Utilities

$127,239


$115,470


$112,230


$112,055


$95,619

 

$354,939


$255,556

Rental property operating
118,732

114,852

113,410

113,445

94,442

 
346,994

278,560

Property taxes
34,871

27,284

35,263

36,348

32,586

 
97,418

87,666

Insurance
2,653

2,606

3,731

3,223

2,590

 
8,990

7,758

Depreciation & amortization
293,957

298,788

294,789

287,973

199,914

 
887,534

554,491

General & administration
40,997

44,277

36,289

44,311

41,477

 
121,563

112,399

Severance, equity acceleration, and legal expenses
645

1,822

234

1,209

2,288

 
2,701

3,522

Transaction and integration expenses
9,626

5,606

4,178

15,681

42,809

 
19,410

60,367

Impairment of investments in real estate




28,992

 

28,992

Other expenses
1,139

152

431

2

3,051

 
1,722

3,075

Total Operating Expenses
$629,859
$610,857
$600,555
$614,247
$543,768
 
$1,841,271
$1,392,386
 
 
 
 
 
 
 
 
 
Operating Income
$139,065
$144,062
$143,813
$117,198
$66,157
 
$426,940
$334,097
 
 
 
 
 
 
 
 
 
Equity in earnings of unconsolidated joint venture

$8,886


$7,438


$7,410


$5,924


$5,880

 

$23,734


$19,592

Gain on real estate transactions
26,577

14,192

39,273

30,746

9,751

 
80,042

9,609

Interest and other income
(981
)
3,398

(42
)
324

2,813

 
2,375

3,331

Interest (expense)
(80,851
)
(78,810
)
(76,985
)
(73,989
)
(71,621
)
 
(236,646
)
(184,653
)
Tax (expense)
(2,432
)
(2,121
)
(3,374
)
(545
)
(2,494
)
 
(7,927
)
(7,356
)
Gain from early extinguishment of debt




1,990

 

1,990

Net Income
$90,264
$88,159
$110,095
$79,658
$12,476
 
$288,518
$176,610
 
 
 
 
 
 
 
 
 
Net (income) attributable to noncontrolling interests
(2,667
)
(2,696
)
(3,468
)
(6,023
)
(40
)
 
(8,831
)
(1,985
)
Net Income Attributable to Digital Realty Trust, Inc.
$87,597
$85,463
$106,627
$73,635
$12,436
 
$279,687
$174,625
 
 
 
 
 
 
 
 
 
Preferred stock dividends, including undeclared dividends
(20,329
)
(20,329
)
(20,329
)
(20,329
)
(16,575
)
 
(60,987
)
(48,473
)
Issuance costs associated with redeemed preferred stock





 

(6,309
)
 
 
 
 
 
 
 
 
 
Net Income (Loss) Available to Common Stockholders
$67,268
$65,134
$86,298
$53,306
($4,139)
 
$218,700
$119,843
 
 
 
 
 
 
 
 
 
Weighted-average shares outstanding - basic
206,118,472

205,956,005

205,714,173

205,448,689

170,194,254

 
205,931,031

163,481,306

Weighted-average shares outstanding - diluted
206,766,256

206,563,079

206,507,476

206,185,084

170,194,254

 
206,555,627

164,371,096

Weighted-average fully diluted shares and units
214,937,168

214,895,273

214,802,763

214,424,363

174,169,511

 
214,824,010

166,937,862

 
 
 
 
 
 
 
 
 
Net income (loss) per share - basic
$0.33
$0.32
$0.42
$0.26
($0.02)
 
$1.06
$0.73
Net income (loss) per share - diluted
$0.33
$0.32
$0.42
$0.26
($0.02)
 
$1.06
$0.73

12


Funds From Operations and Core Funds From Operations
 image40a01a01a06.jpg
Financial Supplement
Unaudited and in Thousands, Except Per Share Data
Third Quarter 2018



Reconciliation of Net Income to Funds From Operations (FFO)
Three Months Ended
 
Nine Months Ended
30-Sep-18
30-Jun-18
31-Mar-18
31-Dec-17
30-Sep-17
 
30-Sep-18
30-Sep-17
 
 
 
 
 
 
 
 
 
Net Income (Loss) Available to Common Stockholders

$67,268


$65,134


$86,298


$53,306


($4,139
)
 

$218,700


$119,843

Adjustments:
 
 
 
 
 
 
 
 
Non-controlling interests in operating partnership
2,700

2,700

3,480

2,138

(79
)
 
8,880

1,632

Real estate related depreciation & amortization (1)
290,757

295,750

291,686

284,924

196,871

 
878,193

545,328

Unconsolidated JV real estate related depreciation & amortization
3,775

3,722

3,476

3,323

2,732

 
10,973

8,243

(Gain) on real estate transactions
(26,577
)
(14,192
)
(39,273
)
(30,746
)
(9,751
)
 
(80,042
)
(9,609
)
Non-controlling interests share of gain on sale of property



3,900


 


Impairment of investments in real estate




28,992

 

28,992

Funds From Operations

$337,923


$353,114


$345,667


$316,845


$214,626

 

$1,036,704


$694,429

 
 
 
 
 
 
 
 
 
Funds From Operations - diluted

$337,923


$353,114


$345,667


$316,845


$214,626

 

$1,036,704


$694,429

 
 
 
 
 
 
 
 
 
Weighted-average shares and units outstanding - basic
214,289

214,288

214,009

213,688

173,461

 
214,199

166,048

Weighted-average shares and units outstanding - diluted (2)
214,937

214,895

214,803

214,424

174,170

 
214,824

166,938

 
 
 
 
 
 
 
 
 
Funds From Operations per share - basic
$1.58
$1.65
$1.62
$1.48
$1.24
 
$4.84
$4.18
 
 
 
 
 
 
 
 
 
Funds From Operations per share - diluted (2)
$1.57
$1.64
$1.61
$1.48
$1.23
 
$4.83
$4.16
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
Reconciliation of FFO to Core FFO
30-Sep-18
30-Jun-18
31-Mar-18
31-Dec-17
30-Sep-17
 
30-Sep-18
30-Sep-17
 
 
 
 
 
 
 
 
 
Funds From Operations - diluted

$337,923


$353,114


$345,667


$316,845


$214,626

 

$1,036,704


$694,429

Adjustments:
 
 
 
 
 
 
 
 
Termination fees and other non-core revenues (3)
(518
)
(3,663
)
(858
)
(447
)
(208
)
 
(5,039
)
(584)
Transaction and integration expenses
9,626

5,606

4,178

15,681

42,809

 
19,410

60,367

Gain from early extinguishment of debt




(1,990
)
 

(1,990
)
Issuance costs associated with redeemed preferred stock





 

6,309

Equity in earnings adjustment for non-core items





 

(3,285
)
Severance, equity acceleration, and legal expenses (4)
645

1,822

234

1,209

2,288

 
2,701

3,522

Bridge facility fees (5)




3,182

 

3,182

Other non-core expense adjustments
2,269

152

431

2

3,051

 
2,852

3,075

Core Funds From Operations - diluted

$349,945


$357,031


$349,652


$333,290


$263,758

 

$1,056,628


$765,025

 
 
 
 
 
 
 
 
 
Weighted-average shares and units outstanding - diluted (2)
214,937

214,895

214,803

214,424

174,170

 
214,824

166,938

 
 
 
 
 
 
 
 
 
Core Funds From Operations per share - diluted (2)
$1.63
$1.66
$1.63
$1.55
$1.51
 
$4.92
$4.58
 
 
 
 
 
 
 
 
 
(1) Real Estate Related Depreciation & Amortization:
Three Months Ended
 
Nine Months Ended
 
30-Sep-18
30-Jun-18
31-Mar-18
31-Dec-17
30-Sep-17
 
30-Sep-18
30-Sep-17
 
 
 
 
 
 
 
 
 
Depreciation & amortization per income statement

$293,957


$298,788


$294,789


$287,973


$199,914

 

$887,534


$554,491

Non-real estate depreciation
(3,200
)
(3,038
)
(3,103
)
(3,049
)
(3,043
)
 
(9,341
)
(9,163
)
 
 
 
 
 
 
 
 
 
Real Estate Related Depreciation & Amortization

$290,757


$295,750


$291,686


$284,924


$196,871

 

$878,193


$545,328



(2)
For all periods presented, we have excluded the effect of dilutive series C, series F, series G, series H, series I and series J preferred stock, as applicable, that may be converted into common stock upon the occurrence of specified change in control transactions as described in the articles supplementary governing the series C, series F, series G, series H, series I, and series J preferred stock, as applicable, which we consider highly improbable. See above for calculations of diluted FFO available to common stockholders and unitholders and the share count detail section of the reconciliation of core FFO to AFFO for calculations of weighted average common stock and units outstanding.
(3)
Includes lease termination fees and certain other adjustments that are not core to our business.
(4)
Relates to severance and other charges related to the departure of company executives and integration-related severance.
(5)
Bridge facility fees are included in interest expense.


13


Adjusted Funds From Operations (AFFO)
image40a01a01a06.jpg
Financial Supplement
Unaudited and in Thousands, Except Per Share Data
Third Quarter 2018




 
Three Months Ended
 
Nine Months Ended
Reconciliation of Core FFO to AFFO
30-Sep-18
30-Jun-18
31-Mar-18
31-Dec-17
30-Sep-17
 
30-Sep-18
30-Sep-17
 
 
 
 
 
 
 
 
 
Core FFO available to common stockholders and unitholders

$349,945


$357,031


$349,652


$333,290


$263,758

 

$1,056,628


$765,025

Adjustments:
 
 
 
 
 
 
 
 
Non-real estate depreciation
3,200

3,038

3,103

3,049

3,043

 
9,341

9,163

Amortization of deferred financing costs
3,066

2,953

3,060

3,092

2,611

 
9,079

7,572

Amortization of debt discount/premium
902

882

875

858

816

 
2,659

2,226

Non-cash stock-based compensation expense
5,823

8,419

5,497

3,923

4,636

 
19,741

13,977

Straight-line rental revenue
(10,511
)
(8,489
)
(10,266
)
(8,705
)
(1,692
)
 
(29,266
)
(7,860
)
Straight-line rental expense
2,482

2,669

2,547

(635
)
4,212

 
7,698

12,742

Above- and below-market rent amortization
6,552

6,794

6,666

6,562

(873
)
 
20,012

(4,792
)
Deferred non-cash tax expense
(1,783
)
(1,137
)
(216
)
(1,100
)
284

 
(3,135
)
(1,812
)
Capitalized leasing compensation (1)
(2,606
)
(2,825
)
(2,998
)
(3,567
)
(2,945
)
 
(8,429
)
(8,319
)
Recurring capital expenditures (2)
(22,500
)
(34,447
)
(27,328
)
(45,298
)
(34,664
)
 
(84,275
)
(90,992
)
Capitalized internal leasing commissions (1)
(2,547
)
(2,822
)
(2,049
)
(1,217
)
(1,225
)
 
(7,418
)
(4,073
)
 
 
 
 
 
 
 
 
 
AFFO available to common stockholders and unitholders (3)

$332,023


$332,066


$328,543


$290,252


$237,961

 

$992,635


$692,857

 
 
 
 
 
 
 
 
 
Weighted-average shares and units outstanding - basic
214,289

214,288

214,009

213,688

173,461

 
214,199

166,048

Weighted-average shares and units outstanding - diluted (4)
214,937

214,895

214,803

214,424

174,170

 
214,824

166,938

 
 
 
 
 
 
 
 
 
AFFO per share - diluted (4)

$1.54


$1.55


$1.53


$1.35


$1.37

 

$4.62


$4.15

 
 
 
 
 
 
 
 
 
Dividends per share and common unit

$1.01


$1.01


$1.01


$0.93


$0.93

 

$3.03


$2.79

 
 
 
 
 
 
 
 
 
Diluted AFFO Payout Ratio
65.4
%
65.4
%
66.0
%
68.7
%
68.1
%
 
65.6
%
67.2
%
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
Share Count Detail
30-Sep-18
30-Jun-18
31-Mar-18
31-Dec-17
30-Sep-17
 
30-Sep-18
30-Sep-17
 
 
 
 
 
 
 
 
 
Weighted Average Common Stock and Units Outstanding
214,289

214,288

214,009

213,688

173,461

 
214,199

166,048

Add: Effect of dilutive securities (excludes 5.50% debentures)
648

607

794

736

709

 
625

890

 
 
 
 
 
 
 
 
 
Weighted Avg. Common Stock and Units Outstanding - diluted
214,937

214,895

214,803

214,424

174,170

 
214,824

166,938


(1)
Includes only second-generation leasing costs.
(2)
Recurring capital expenditures represent non-incremental building improvements required to maintain current revenues, including second-generation tenant improvements and external leasing commissions. Recurring capital expenditures do not include acquisition costs contemplated when underwriting the purchase of a building, costs which are incurred to bring a building up to Digital Realty's operating standards, or internal leasing commissions.
(3)
For a definition and discussion of AFFO, see the definitions section. For a reconciliation of net income available to common stockholders to FFO and core FFO, see above.
(4)
For all periods presented, we have excluded the effect of dilutive series C, series F, series G, series H, series I and series J preferred stock, as applicable, that may be converted into common stock upon the occurrence of specified change in control transactions as described in the articles supplementary governing the series C, series F, series G, series H, series I, and series J preferred stock, as applicable, which we consider highly improbable. See above for calculations of diluted FFO available to common stockholders and unitholders and for calculations of weighted average common stock and units outstanding.

14


Consolidated Balance Sheets
image40a01a01a06.jpg
Financial Supplement
Unaudited and in Thousands, Except Share and Per Share Data
Third Quarter 2018




 
30-Sep-18
30-Jun-18
31-Mar-18
31-Dec-17
30-Sep-17
Assets
 
 
 
 
 
Investments in real estate:
 
 
 
 
 
Real estate

$16,062,402


$15,969,938


$15,654,932


$15,163,846


$14,693,479

Construction in progress
1,464,010

1,323,998

1,470,065

1,399,684

1,405,740

Land held for future development
284,962

261,368

236,415

352,406

330,101

Investments in real estate

$17,811,374


$17,555,304


$17,361,412


$16,915,936


$16,429,320

Accumulated depreciation and amortization
(3,755,596
)
(3,588,124
)
(3,439,050
)
(3,238,227
)
(3,075,294
)
Net Investments in Properties

$14,055,778


$13,967,180


$13,922,362


$13,677,709


$13,354,026

Investment in unconsolidated joint ventures
169,919

167,306

167,564

163,477

106,374

Net Investments in Real Estate

$14,225,697


$14,134,486


$14,089,926


$13,841,186


$13,460,400

 
 
 
 
 
 
Cash and cash equivalents

$46,242


$17,589


$22,370


$51


$192,578

Accounts and other receivables (1)
308,709

282,287

309,328

276,347

258,490

Deferred rent
454,412

445,766

442,887

430,026

420,348

Acquired in-place lease value, deferred leasing costs and other real estate intangibles, net
2,734,158

2,823,275

2,928,566

2,998,806

3,052,277

Acquired above-market leases, net
135,127

150,084

165,568

184,375

178,190

Goodwill
3,373,342

3,378,325

3,405,110

3,389,595

3,384,394

Restricted cash
8,068

9,443

7,330

13,130

17,753

Assets associated with real estate held for sale


41,707

139,538

132,818

Other assets
176,355

170,168

169,125

131,291

135,250

 
 
 
 
 
 
Total Assets

$21,462,110


$21,411,423


$21,581,917


$21,404,345


$21,232,498

 
 
 
 
 
 
Liabilities and Equity
 
 
 
 
 
Global unsecured revolving credit facility

$590,289


$466,971


$952,121


$550,946


$138,477

Unsecured term loans
1,352,969

1,376,784

1,428,498

1,420,333

1,432,659

Unsecured senior notes, net of discount
7,130,541

7,156,084

6,660,727

6,570,757

6,806,333

Mortgage loans, net of premiums
106,072

106,245

106,366

106,582

106,775

Accounts payable and other accrued liabilities
1,059,355

1,031,794

1,012,490

980,218

1,024,394

Accrued dividends and distributions



199,761


Acquired below-market leases
208,202

216,520

225,674

249,465

257,732

Security deposits and prepaid rent
233,667

207,292

207,859

217,898

223,536

Liabilities associated with assets held for sale


1,767

5,033

4,660

Total Liabilities

$10,681,095


$10,561,690


$10,595,502


$10,300,993


$9,994,566

 
 
 
 
 
 
Redeemable non-controlling interests - operating partnership
17,553

52,805

49,871

53,902

64,509

 
 
 
 
 
 
Equity
 
 
 
 
 
Preferred Stock: $0.01 par value per share, 110,000,000 shares authorized:
 
 
 
 
 
Series C Cumulative Redeemable Preferred Stock (2)

$219,250