Digital Realty Reports Second Quarter 2020 Results

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SAN FRANCISCO , July 30, 2020 /PRNewswire/ --  Digital Realty (NYSE: DLR) , a leading global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, announced today financial results for the second quarter of 2020.  All per-share results are presented on a fully-diluted share and unit basis. 

Highlights

  • Reported net income available to common stockholders of $0.20 per share in 2Q20, compared to $0.15 in 2Q19

  • Reported FFO per share of $1.49 in 2Q20, compared to $1.53 in 2Q19

  • Reported core FFO per share of $1.54 in 2Q20, compared to $1.64 in 2Q19

  • Signed total bookings during 2Q20 expected to generate $144 million of annualized GAAP rental revenue, including a $12 million contribution from interconnection

  • Raised 2020 core FFO per share outlook from $5.90 - $6.10 to $6.00 - $6.10

Financial Results

Digital Realty reported revenues for the second quarter of 2020 of $993 million , a 21% increase from the previous quarter and a 24% increase from the same quarter last year. 

The company delivered second quarter of 2020 net income of $76 million , and net income available to common stockholders of $54 million , or $0.20 per diluted share, compared to $0.90 per diluted share in the previous quarter and $0.15 per diluted share in the same quarter last year. 

Digital Realty generated second quarter of 2020 adjusted EBITDA of $559 million , a 16% increase from the previous quarter and a 17% increase over the same quarter last year. 

The company reported second quarter of 2020 funds from operations of $415 million , or $1.49 per share, compared to $0.91 per share in the previous quarter and $1.53 per share in the same quarter last year. 

Excluding certain items that do not represent core expenses or revenue streams, Digital Realty delivered second quarter of 2020 core FFO per share of $1.54 , a 1% increase from $1.53 per share in the previous quarter, and a 6% decrease from $1.64 per share in the same quarter last year. 

Leasing Activity

In the second quarter, Digital Realty signed total bookings expected to generate $144 million of annualized GAAP rental revenue, including a $12 million contribution from interconnection and an $18 million contribution from the combination with Interxion, which was completed on March 12 , 2020. 

"I'm incredibly proud of the way the Digital Realty team has come together during the difficult circumstances of the past several months to maintain steadfast support for our customers around the world, prioritizing health and safety while maintaining service levels," said Digital Realty Chief Executive Officer A. William Stein .  "We continued to seed investments to support our customers' future growth across the Americas, APAC and EMEA, while delivering record current-period bookings, demonstrating the power of our global platform as well as the resiliency of our business.  Looking ahead, we are well positioned to continue to deliver sustainable growth for customers, shareholders and employees, into the second half of 2020 and beyond." 

The weighted-average lag between leases signed during the second quarter of 2020 and the contractual commencement date was seven months. 

In addition to new leases signed, Digital Realty also signed renewal leases representing $169 million of annualized GAAP rental revenue during the quarter.  Rental rates on renewal leases signed during the second quarter of 2020 rolled down 2.8% on a cash basis and up 7.2% on a GAAP basis. 

New leases signed during the second quarter of 2020 are summarized by region as follows:

















Annualized GAAP













Base Rent




GAAP Base Rent




GAAP Base Rent

 The Americas


(in thousands)


Square Feet


per Square Foot


Megawatts


per Kilowatt

 0-1 MW



$11,645


59,770



$195


4.5



$214

 > 1 MW



78,711


668,092



118


70.6



93

 Other (1)



17,376


532,078



33




Total



$107,733


1,259,940



$86


75.1



$100















 Europe (2)














 0-1 MW



$9,898


40,469



$245


3.2



$260

 > 1 MW



11,237


111,474



101


9.6



98

 Other (1)



108


927



116




Total



$21,243


152,870



$139


12.8



$138















 Asia Pacific (2)














 0-1 MW



$617


2,891



$213


0.2



$266

 > 1 MW



2,433


10,024



243


1.2



167

 Other (1)









Total



$3,050


12,915



$236


1.4



$180















All Regions (2)














 0-1 MW



$22,160


103,130



$215


7.9



$234

 > 1 MW



92,382


789,590



117


81.4



95

 Other (1)



17,484


533,005



33




Total



$132,026


1,425,725



$93


89.3



$107















Interconnection



$11,775


N/A



N/A


N/A



N/A















Grand Total



$143,800


1,425,725



$93


89.3



$107


Note:  Totals may not foot due to rounding differences. 

(1)

Other includes Powered Base Building shell capacity as well as storage and office space within fully improved data center facilities. 

(2)

Based on quarterly average exchange rates during the three months ended June 30, 2020. 

Investment Activity

During the second quarter of 2020, Interxion, a leading European provider of carrier- and cloud-neutral colocation data center solutions and a Digital Realty company, acquired a 3.6-acre land parcel in Madrid, Spain for approximately ¬33 million, or $37 million .  The land parcel is less than one kilometer from Interxion's existing campus in Madrid .  Upon completion, the new facility is expected to support up to 34 megawatts of critical IT capacity and will encompass more than 375,000 square feet.  Commencement of development will be subject to market demand, and delivery will be phased to meet future customer growth requirements. 

Subsequent to quarter-end, Interxion acquired the freehold to the land under its Hanauer Landstraße campus in Frankfurt for ¬185 million, or approximately $209 million .  The site includes nine Interxion data centers previously subject to leasehold agreements with approximately nine years of remaining lease term, along with Interxion's German headquarters office as well as several buildings currently leased to other customers.  Interxion now owns the freehold to all 15 data centers on its Frankfurt campus. 

Separately, Interxion reached an agreement to acquire an expansion parcel within approximately one kilometre of the Hanauer Landstraße campus for ¬177 million, or approximately $200 million .  The expansion parcel totals 107,000 square metres that will support the development of up to 180 megawatts of additional IT capacity and will be fully connected to the existing campus.  The purchase is expected to close in two stages, with final transfer of ownership in early 2021.

Subsequent to quarter-end, Digital Realty closed on the sale of a property in Gronigen, the Netherlands for ¬20 million, or $22 million .  The property is expected to generate 2020 cash net operating income of approximately ¬1.3 million, or $1.5 million , representing a 6.7% cap rate. 

Balance Sheet

Digital Realty completed the following financing transactions during the second quarter of 2020. 

  • In mid-June, Digital Realty closed an offering of ¬500 million, or approximately $565 million , of 1.250% Euro-denominated notes due 2031.

  • Likewise in mid-June, Digital Realty liquidated a portion of its stake in Megaport with the sale of 7.7 million shares at a weighted average price of A$13.36 generating gross proceeds of A$103 million , or approximately $70 million .

  • During the second quarter of 2020, Digital Realty issued 4.5 million shares of common stock under the company's at-the-market equity offering program at a weighted average price of $142.43 per share, generating gross proceeds of approximately $645 million .

  • Subsequent to quarter-end, Digital Realty announced its intent to redeem all $300 million of its outstanding 3.625% notes due 2022 as well as all $500 million of its outstanding 3.950% notes due 2022.

Digital Realty had approximately $12.4 billion of total debt outstanding as of June 30, 2020 , comprised of $12.1 billion of unsecured debt and approximately $0.2 billion of secured debt.  At the end of the second quarter of 2020, net debt-to-adjusted EBITDA was 5.7x, debt plus-preferred-to-total enterprise value was 26.0% and fixed charge coverage was 4.6x.  Pro forma for settlement of the $1 billion forward equity offering, net debt-to-adjusted EBITDA was 5.2x and fixed charge coverage was 4.9x. 

COVID-19

Throughout the COVID-19 global pandemic, Digital Realty's data centers around the world have remained fully operational in accordance with business continuity and pandemic response plans, prioritizing the health and safety of employees, customers and partners while ensuring service levels are maintained.  Digital Realty data centers have been deemed essential operations, allowing for critical personnel to remain in place and continue to provide services and support for customers.  Construction activity has been somewhat delayed in a few markets due to government restrictions in certain locations and/or limited availability of labor.  In some instances, these delays have impacted scheduled delivery dates.  We are monitoring the situation closely and remain in frequent communication with customers, contractors and suppliers.  We have proactively managed our supply chain, and we believe we have acquired the vast majority of the equipment needed to complete our 2020 development activities.  We believe we have ample liquidity to fund our business needs, given the $1 billion available upon physical settlement of the forward equity offering as well as the $505 million of cash on the balance sheet and $2.5 billion of availability under our global revolving credit facilities as of June 30 , 2020.  While we have not experienced any significant business disruptions from the COVID-19 pandemic to date, we cannot predict what impact the COVID-19 pandemic may have on our future financial condition, results of operations or cash flows due to numerous uncertainties. 

2020 Outlook

Digital Realty raised its 2020 core FFO per share outlook from $5.90 - $6.10 to $6.00 - $6.10 .  The assumptions underlying the outlook are summarized in the following table. 








As of


As of

 Top-Line and Cost Structure


May 7, 2020


July 30, 2020

Total revenue


$3.725 - $3.825 billion


$3.775 - $3.825 billion

Net non-cash rent adjustments (1)


($20 - $30 million)


($20 - $30 million)

Adjusted EBITDA


$2.075 - $2.125 billion


$2.100 - $2.125 billion

G&A


$320 - $330 million


$320 - $330 million






 Internal Growth





Rental rates on renewal leases





Cash basis


Down low single-digits


Down low single-digits

GAAP basis


Unchanged


Unchanged

Year-end portfolio occupancy (2)


85.0% - 86.0%


85.0% - 86.0%

"Same-capital" cash NOI growth (3)


(2.5%) - (3.5%)


(2.5%) - (3.5%)






Foreign Exchange Rates





U.S. Dollar / Pound Sterling


$1.20 - $1.25


$1.20 - $1.25

U.S. Dollar / Euro


$1.05 - $1.10


$1.05 - $1.15






 External Growth





Dispositions





Dollar volume


$0.6 - $1.0 billion


$0.6 - $1.0 billion

Cap rate


0.0% - 12.0%


0.0% - 12.0%

Development





CapEx (4)


$1.9 - $2.2 billion


$1.9 - $2.2 billion

Average stabilized yields


9.0% - 15.0%


9.0% - 15.0%

Enhancements and other non-recurring CapEx (5)


$5 - $10 million


$5 - $10 million

Recurring CapEx + capitalized leasing costs (6)


$220 - $230 million


$220 - $230 million






 Balance Sheet





Long-term debt issuance





Dollar amount


$1.9 billion


$2.5 billion

Pricing


1.00%


1.00% - 1.25%

Timing


Early 2020


Early-to-mid 2020






 Net income per diluted share


$1.60 - $1.75


$1.20 - $1.25

Real estate depreciation and (gain) / loss on sale


$3.50 - $3.50


$3.90 - $3.90

 Funds From Operations / share (NAREIT-Defined)


$5.10 - $5.25


$5.10 - $5.15

Non-core expenses and revenue streams


$0.80 - $0.85


$0.90 - $0.95

 Core Funds From Operations / share


$5.90 - $6.10


$6.00 - $6.10

Foreign currency translation adjustments


$0.05 - $0.15


$0.05 - $0.15

 Constant-Currency Core FFO / share


$5.95 - $6.25


$6.05 - $6.25



(1)

Net non-cash rent adjustments represent the sum of straight-line rental revenue and straight-line rent expense, as well as the amortization of above- and below-market leases (i.e., ASC 805 adjustments). 

(2)

Reflects inclusion of the Interxion portfolio, which was approximately 75% occupied as of June 30, 2020. 

(3)

The "same-capital" pool includes properties owned as of December 31, 2018 with less than 5% of total rentable square feet under development.  It also excludes properties that were undergoing, or were expected to undergo, development activities in 20192020, properties classified as held for sale, and properties sold or contributed to joint ventures for all periods presented. 

(4)

Includes land acquisitions. 

(5)

Other non-recurring CapEx represents costs incurred to enhance the capacity or marketability of operating properties, such as network fiber initiatives and software development costs. 

(6)

Recurring CapEx represents non-incremental improvements required to maintain current revenues, including second-generation tenant improvements and leasing commissions. 

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 July 30, 2020 , a presentation will be posted to the Investors section of the company's website at https://investor.digitalrealty.com/ .  The presentation is designed to accompany the discussion of the company's second quarter 2020 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# 0396071 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 https://investor.digitalrealty.com/

Telephone and webcast replays will be available after the call until August 30 , 2020.  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# 10145667.  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 customers across the Americas, EMEA and APAC, ranging from cloud and information technology services, communications an...

d social networking to financial services, manufacturing, energy, healthcare and consumer products. To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and Twitter.

Contact Information

Andrew P. Power
Chief Financial Officer
Digital Realty
(415) 738–6500

John J. Stewart / Jim Huseby
Investor Relations
Digital Realty
(415) 738–6500

Consolidated Quarterly Statements of Operations

Financial Supplement

Unaudited and Dollars in Thousands, Except Per Share Data

Second Quarter 2020



























Three Months Ended



Six Months Ended




30-Jun-20



31-Mar-20



31-Dec-19



30-Sep-19



30-Jun-19




30-Jun-20



30-Jun-19

Rental revenues



$698,041



$579,774



$549,733



$564,975



$565,925




$1,277,815



$1,151,349

Tenant reimbursements - Utilities



141,576



113,520



107,518



114,719



106,409




255,096



208,978

Tenant reimbursements - Other



62,630



56,943



59,641



57,466



62,820




119,573



118,688

Interconnection & other



85,428



69,835



65,576



65,312



64,232




155,263



132,400

Fee income



4,353



2,452



4,814



3,994



925




6,805



2,845

Other



967



813



181





486




1,780



1,051

Total Operating Revenues



$992,995



$823,337



$787,463



$806,466



$800,797




$1,816,332



$1,615,311
























Utilities



$160,173



$129,526



$125,127



$132,565



$123,398




$289,698



$247,732

Rental property operating



172,474



136,182



129,034



126,866



128,634




308,656



259,254

Property taxes



45,071



42,123



42,541



38,255



41,482




87,194



78,797

Insurance



3,370



3,547



3,055



3,103



3,441




6,917



6,432

Depreciation & amortization



349,165



291,457



275,008



286,718



290,562




640,622



602,048

General & administration



90,649



62,266



53,540



49,862



52,318




152,915



104,294

Severance, equity acceleration, and legal expenses



3,642



1,272



1,130



123



665




4,914



2,148

Transaction and integration expenses



15,618



56,801



17,106



4,115



4,210




72,419



6,704

Impairment of investments in real estate
















5,351

Other expenses



22



114



1,989



92



7,115




136



12,037

Total Operating Expenses



$840,184



$723,288



$648,530



$641,699



$651,825




$1,563,471



$1,324,797
























Operating Income



$152,811



$100,049



$138,933



$164,767



$148,972




$252,861



$290,514
























Equity in (loss) earnings of unconsolidated joint ventures



(7,632)



(78,996)



11,157



(19,269)



6,962




(86,628)



16,180

Gain on sale / deconsolidation





304,801



267,651








304,801



67,497

Interest and other income (expense), net



22,163



(3,542)



10,734



16,842



16,980




18,621



38,424

Interest (expense)



(79,874)



(85,800)



(80,880)



(84,574)



(86,051)




(165,674)



(187,603)

Income tax benefit (expense)



(11,490)



(7,182)



1,731



(4,826)



(4,634)




(18,672)



(8,900)

Loss from early extinguishment of debt





(632)





(5,366)



(20,905)




(632)



(33,791)

Net Income



$75,978



$228,698



$349,326



$67,574



$61,324




$304,677



$182,321
























Net (income) loss attributable to noncontrolling interests



(1,147)



(4,684)



(13,042)



(1,077)



(1,156)




(5,831)



(5,341)

Net Income Attributable to Digital Realty Trust, Inc.



$74,831



$224,014



$336,284



$66,497



$60,168




$298,846



$176,980
























Preferred stock dividends, including undeclared dividends



(21,155)



(21,155)



(20,707)



(16,670)



(16,670)




(42,310)



(37,613)

Issuance costs associated with redeemed preferred stock











(11,760)






(11,760)

Net Income Available to Common Stockholders



$53,676



$202,859



$315,577



$49,827



$31,738




$256,536



$127,607
























Weighted-average shares outstanding - basic



267,569,823



222,163,324



208,776,355



208,421,470



208,284,407




244,866,574



208,048,207

Weighted-average shares outstanding - diluted



270,744,408



224,474,295



210,286,278



209,801,771



209,435,572




247,576,014



208,894,294

Weighted-average fully diluted shares and units



278,719,109



232,753,630



218,901,078



218,755,597



218,497,318




255,704,473



218,039,658
























Net income per share - basic



$0.20



$0.91



$1.51



$0.24



$0.15




$1.05



$0.61

Net income per share - diluted



$0.20



$0.90



$1.50



$0.24



$0.15




$1.04



$0.61

Funds From Operations and Core Funds From Operations

Financial Supplement

Unaudited and in Thousands, Except Per Share Data

Second Quarter 2020


























Three Months Ended



Six Months Ended

Reconciliation of Net Income to Funds From Operations (FFO)



30-Jun-20



31-Mar-20



31-Dec-19



30-Sep-19



30-Jun-19




30-Jun-20



30-Jun-19
























Net Income Available to Common Stockholders



$53,676



$202,859



$315,577



$49,827



$31,738




$256,535



$127,607

Adjustments:























Non-controlling interest operating partnership



1,400



7,800



13,100



2,300



1,400




9,200



5,700

Real estate related depreciation & amortization (1)



342,334



286,517



271,371



283,090



286,915




628,851



594,779

Unconsolidated JV real estate related depreciation & amortization



17,123



19,923



21,631



13,612



13,623




37,046



17,474

(Gain) on real estate transactions



-



(304,801)



(267,651)



-



-




(304,801)



-

Impairment of investments in real estate



-



-



-



-



-




-



5,351

Funds From Operations



$414,533



$212,298



$354,028



$348,829



$333,676




$626,831



$750,911
























Funds From Operations - diluted



$414,533



$212,298



$354,028



$348,829



$333,676




$626,831



$750,911
























Weighted-average shares and units outstanding - basic



275,545



230,443



217,391



217,375



217,346




252,995



217,194

Weighted-average shares and units outstanding - diluted (2)



278,719



232,754



218,901



218,756



218,497




255,704



218,040
























Funds From Operations per share - basic



$1.50



$0.92



$1.63



$1.60



$1.54




$2.48



$3.46
























Funds From Operations per share - diluted (2)



$1.49



$0.91



$1.62



$1.59



$1.53




$2.45



$3.44


























Three Months Ended



Six Months Ended

Reconciliation of FFO to Core FFO



30-Jun-20



31-Mar-20



31-Dec-19



30-Sep-19



30-Jun-19




30-Jun-20



30-Jun-19
























Funds From Operations - diluted



$414,533



$212,298



$354,028



$348,829



$333,676




$626,831



$750,911

Termination fees and other non-core revenues (3)



(21,908)



(2,425)



(5,634)



(16,792)



(16,826)




(24,333)



(31,271)

Transaction and integration expenses



15,618



56,801



17,106



4,115



4,210




72,419



6,704

Loss from early extinguishment of debt



-



632



-



5,366



20,905




632



33,791

Issuance costs associated with redeemed preferred stock



-



-



-



-



11,760




-



11,760

Severance, equity acceleration, and legal expenses (4)



3,642



1,272



1,130



123



665




4,914



2,148

(Gain) / Loss on FX revaluation



17,526



81,288



(10,422)



23,136



(4,251)




98,814



5,353

(Gain) on contribution to unconsolidated JV, net of related tax



-



-



-



-



-




-



(58,497)

Other non-core expense adjustments



22



5,509



(1,511)



92



7,115




5,531



12,037

Core Funds From Operations - diluted



$429,433



$355,375



$354,697



$364,869



$357,254




$784,808



$732,936
























Weighted-average shares and units outstanding - diluted (2)



278,719



232,754



218,901



218,756



218,497




255,704



218,040
























Core Funds From Operations per share - diluted (2)



$1.54



$1.53



$1.62



$1.67



$1.64




$3.07



$3.36
























(1) Real Estate Related Depreciation & Amortization


Three Months Ended



Six Months Ended




30-Jun-20



31-Mar-20



31-Dec-19



30-Sep-19



30-Jun-19




30-Jun-20



30-Jun-19
























Depreciation & amortization per income statement



$349,165



$291,457



$275,008



$286,718



$290,562




640,622



602,048

Non-real estate depreciation



(6,831)



(4,940)



(3,637)



(3,628)



(3,647)




(11,771)



(7,269)

Real Estate Related Depreciation & Amortization



$342,334



$286,517



$271,371



$283,090



$286,915




$628,851



$594,779



(2)

For all periods presented, we have excluded the effect of dilutive series C, series G, series H, series I, series J, series K and series L 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 G, series H, series I, series J, series K and series L preferred stock, as applicable, which we consider highly improbable. See above for calculations of diluted FFO and the share count detail section that follows the reconciliation of core FFO to AFFO for calculations of weighted average common stock and units outstanding. For definitions and discussion of FFO and core FFO, see the definition section.

(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.


Adjusted Funds From Operations (AFFO)

Financial Supplement

Unaudited and in Thousands, Except Per Share Data

Second Quarter 2020


























Three Months Ended



Six Months Ended

Reconciliation of Core FFO to AFFO



30-Jun-20



31-Mar-20



31-Dec-19



30-Sep-19



30-Jun-19




30-Jun-20



30-Jun-19
























Core FFO available to common stockholders and unitholders



$429,433



$355,375



$354,697



$364,869



$357,254




$784,808



$732,936

Adjustments:























Non-real estate depreciation



6,831



4,940



3,637



3,628



3,647




11,771



7,269

Amortization of deferred financing costs



3,661



4,260



3,064



2,900



2,905




7,921



7,398

Amortization of debt discount/premium



1,011



943



612



466



515




1,954



1,275

Non-cash stock-based compensation expense



15,060



12,153



8,937



8,906



9,468




27,213



17,060

Straight-line rental revenue



(10,928)



(15,404)



(13,994)



(12,764)



(13,033)




(26,332)



(29,013)

Straight-line rental expense



7,373



1,460



(342)



(209)



318




8,833



1,552

Above- and below-market rent amortization



3,794



3,294



4,109



2,824



3,954




7,088



10,163

Deferred tax expense



(150)



(792)



(998)



(1,418)



(979)




(942)



(16,376)

Leasing compensation & internal lease commissions (1)



1,739



2,793



3,646



3,254



4,025




4,532



7,606

Recurring capital expenditures (2)



(38,796)



(34,677)



(54,731)



(48,408)



(39,515)




(73,473)



(77,574)
























AFFO available to common stockholders and unitholders (3)



$419,028



$334,345



$308,637



$324,048



$328,559




$753,373



$662,296
























Weighted-average shares and units outstanding - basic



275,545



230,443



217,391



217,375



217,346




252,995



217,194

Weighted-average shares and units outstanding - diluted (4)



278,719



232,754



218,901



218,756



218,497




255,704



218,040
























AFFO per share - diluted (4)



$1.50



$1.44



$1.41



$1.48



$1.50




$2.95



$3.04
























Dividends per share and common unit



$1.12



$1.12



$1.08



$1.08



$1.08




$2.24



$2.16
























Diluted AFFO Payout Ratio



74.5%



78.0%



76.6%



72.9%



71.8%




76.0%



71.1%


























Three Months Ended



Six Months Ended

Share Count Detail



30-Jun-20



31-Mar-20



31-Dec-19



30-Sep-19



30-Jun-19




30-Jun-20



30-Jun-19
























Weighted Average Common Stock and Units Outstanding



275,545



230,443



217,391



217,375



217,346




252,995



217,194

Add: Effect of dilutive securities



3,174



2,311



1,510



1,381



1,151




2,709



846

Weighted Avg. Common Stock and Units Outstanding - diluted



278,719



232,754



218,901



218,756



218,497




255,704



218,040



(1)

The company adopted ASC 842 in the first quarter of 2019.

(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 G, series H, series I, series J, series K and series L 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 G, series H, series I, series J, series K and series L 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.

Consolidated Balance Sheets

Financial Supplement

Unaudited and in Thousands, Except Share and Per Share Data

Second Quarter 2020





























30-Jun-20


31-March-20


31-Dec-19


30-Sep-19


30-Jun-19

Assets





















Investments in real estate:
















Real estate



$20,843,273



$20,477,290



$16,886,592



$16,407,080



$17,324,416

Construction in progress



2,514,324



2,204,869



1,732,555



1,647,130



1,685,056

Land held for future development



175,209



137,447



147,597



150,265



152,368

Investments in real estate



$23,532,806



$22,819,606



$18,766,744



$18,204,475



$19,161,840

Accumulated depreciation and amortization



(4,945,534)



(4,694,713)



(4,536,169)



(4,298,629)



(4,312,357)

Net Investments in Properties



$18,587,272



$18,124,893



$14,230,575



$13,905,846



$14,849,483

Investment in unconsolidated joint ventures



1,033,235



1,064,009



1,287,109



1,035,861



979,350

Net Investments in Real Estate