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Exhibit 99.2

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DIGITAL REALTY TRUST, INC.

Third Quarter 2011

 

 

  

PAGE

 

Corporate Data

  

Corporate Information

  

 

4

  

Ownership Structure

  

 

6

  

Consolidated Financial Information

  

Key Quarterly Financial Data

  

 

7

  

Consolidated Balance Sheets

  

 

8

  

Consolidated Quarterly Statements of Operations

  

 

9

  

Funds From Operations and Adjusted Funds From Operations

  

 

10

  

Reconciliation of Earnings Before Interest, Taxes, Depreciation and Amortization and Financial Ratios

  

 

11

  

Same Store and New Properties Consolidated Quarterly Statements of Operations

  

 

12

  

Same Store Operating Trend Summary

  

 

13

  

Consolidated Debt Analysis and Corporate Credit Facility

  

 

14

  

Corporate Revolving Credit Facility Commitments

  

 

15

  

Debt Maturities

  

 

16

  

Debt Analysis & Covenant Compliance

  

 

17

  

Portfolio Data

  

Portfolio Summary

  

 

18

  

Properties Acquired

  

 

19

  

Occupancy Analysis

  

 

20

  

Major Tenants

  

 

23

  

Lease Expirations and Lease Distribution

  

 

24

  

Lease Expirations — By Product Type

  

 

25

  

Summary of Leasing Activity - Signed

  

 

26

  

Summary of Leasing Activity - Commenced

  

 

27

  

Historical Capital Expenditures

  

 

28

  

Construction Activity Report

  

 

29

  

Construction Projects in Progress and Total Estimated Direct Cost

  

 

30

  

Definitions

  

Management Statements on Non-GAAP Supplemental Measures

  

 

31

  

 

Page 2


DIGITAL REALTY TRUST, INC.

Third Quarter 2011

 

Statement Regarding Forward-Looking Statements

This supplemental package contains forward-looking statements within the meaning of the federal securities laws, including information related to trends, leasing expectations, weighted average lease terms, the exercise of lease extensions, lease expirations, debt maturities, annualized rent at expiration of leases, the effect new leases and increases in rental rates will have on our rental revenue, our credit ratings, construction and redevelopment activity, projected construction costs and other forward-looking financial data. Such statements are based on management’s beliefs and assumptions made based on information currently available to management. Such statements are subject to risks, uncertainties and assumptions and are not guarantees of future performance and may be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Some of the risks and uncertainties that may cause our actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements include, among others, the following:

 

 

 

the impact of the recent deterioration in global economic, credit and market conditions, including the downgrading of the U.S. government’s credit rating;

 

 

 

current local economic conditions in our geographic markets;

 

 

 

decreases in information technology spending, including as a result of economic slowdowns or recession;

 

 

 

adverse economic or real estate developments in our industry or the industry sectors that we sell to (including risks relating to decreasing real estate valuations and impairment charges);

 

 

 

our dependence upon significant tenants;

 

 

 

bankruptcy or insolvency of a major tenant or a significant number of smaller tenants;

 

 

 

defaults on or non-renewal of leases by tenants;

 

 

 

our failure to obtain necessary debt and equity financing;

 

 

 

increased interest rates and operating costs;

 

 

 

risks associated with using debt to fund our business activities, including re-financing and interest rate risks, our failure to repay debt when due, adverse changes in our credit ratings or our breach of covenants or other terms contained in our loan facilities and agreements;

 

 

 

financial market fluctuations;

 

 

 

changes in foreign currency exchange rates;

 

 

 

our inability to manage our growth effectively;

 

 

 

difficulty acquiring or operating properties in foreign jurisdictions;

 

 

 

our failure to successfully integrate and operate acquired or redeveloped properties;

 

 

 

risks related to joint venture investments, including as a result of our lack of control of such investments;

 

 

 

delays or unexpected costs in development or redevelopment of properties;

 

 

 

decreased rental rates or increased vacancy rates;

 

 

 

increased competition or available supply of data center space;

 

 

 

our inability to successfully develop and lease new properties and space held for redevelopment;

 

 

 

difficulties in identifying properties to acquire and completing acquisitions;

 

 

 

our inability to acquire off-market properties;

 

 

 

our inability to comply with the rules and regulations applicable to reporting companies;

 

 

 

our failure to maintain our status as a REIT;

 

 

 

possible adverse changes to tax laws;

 

 

 

restrictions on our ability to engage in certain business activities;

 

 

 

environmental uncertainties and risks related to natural disasters;

 

 

 

losses in excess of our insurance coverage;

 

 

 

changes in foreign laws and regulations, including those related to taxation and real estate ownership and operation; and

 

 

 

changes in local, state and federal regulatory requirements, including changes in real estate and zoning laws and increases in real property tax rates.

The risks included here are not exhaustive, and additional factors could adversely affect our business and financial performance. We discussed a number of additional material risks in our annual report on Form 10-K for the year ended December 31, 2010, and other filings with the Securities and Exchange Commission. Those risks continue to be relevant to our performance and financial condition. Moreover, we operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We expressly disclaim any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise.

 

Page 3


DIGITAL REALTY TRUST, INC.

Third Quarter 2011

 

Corporate Information

Corporate Profile

Digital Realty Trust, Inc. owns, acquires, redevelops, develops and manages technology-related real estate. The Company is focused on providing Turn-Key Datacenter® and Powered Base Building® datacenter solutions for domestic and international tenants across a variety of industry verticals ranging from information technology and Internet enterprises, to manufacturing and financial services. The Company’s 98 properties, excluding two properties held as investments in unconsolidated joint ventures, contain applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise datacenter tenants. Comprising approximately 17.4 million net rentable square feet, including approximately 2.1 million square feet of space held for redevelopment, Digital Realty Trust’s portfolio is located throughout North America, Europe, Asia and Australia. For additional information, please visit the company’s website at www.digitalrealty.com.

Corporate Headquarters

560 Mission Street, Suite 2900

San Francisco, California 94105

Telephone: (415) 738-6500

Facsimile: (415) 738-6501

Web site: www.digitalrealtytrust.com

Senior Management

Richard A. Magnuson: Chairman

Michael F. Foust: Chief Executive Officer

A. William Stein: Chief Financial Officer and Chief Investment Officer

Scott E. Peterson: Chief Acquisitions Officer

David J. Caron: Senior Vice President, Portfolio Management

Investor Relations

To request an Investor Relations package or be added to our e-mail distribution list, please visit our website:

www.digitalrealty.com                    (Proceed to Information Request in the Investor Relations section)

Analyst Coverage

 

Credit Suisse

  

Jefferies

  

JMP Securities

  

Deutsche Bank

  

Macquarie

Andrew Rosivach

  

Omotayo Okusanya

  

William C. Marks

  

John Perry

  

Rob Stevenson

(415) 249-7942

  

(212) 336-7076

  

(415) 835-8944

  

(212) 250-4912

  

(212) 231-8068

Gautam Garg

  

Jonathan Petersen

  

Mitch Germain

  

Vincent Chao

  

Nicolas Yulico

(415) 249-7933

  

(212) 336-7454

  

(212) 906-3546

  

(212) 250-6799

  

(212) 231-8028

Barclays Capital

  

FBR

  

Citigroup

  

Baird

  

Bank of America

Merrill Lynch

Ross Smotrich

  

Sri Nagarajan

  

Michael Bilerman

  

Christopher R. Lucas

  

James Feldman

(212) 526-2306

  

(646) 885-5429

  

(212) 816-1685

  

(703) 821-5780

  

(646) 855-5808

Matthew Rand

  

Evan Smith

  

Emmanuel Korchman

  

Thomas Lesnik

  

Ji Zhang

(212) 526-0248

  

(646) 885-6431

  

(212) 816-1382

  

(703) 918-7854

  

(646) 855-2926

RBC Capital Markets

  

Raymond James

  

KeyBanc Capital

Markets

  

ISI

  

Stifel Nicolaus

Dave Rodgers

  

Paul D. Puryear

  

Jordan Sadler

  

Steve Sakwa

  

Todd Weller

(440) 715-2647

  

(727) 567-2253

  

(917) 368-2280

  

(212) 446-9462

  

(443) 224-1305

Mike Carroll

  

William A. Crow

  

Craig Mailman

  

George Auerbach

  

(440) 715-2649

  

(727) 567-2594

  

(917) 368-2316

  

(212) 446-9459

  

UBS

  

Goldman Sachs

  

Green Street

  

Morgan Joseph

TriArtisan

  

Ross Nussbaum

  

Sloan Bohlen

  

Lukas Hartwich

  

Ilya Grozovsky

  

(212) 713-2484

  

(212) 902-2796

  

(949) 640-8780

  

212.218.3856

  

This Supplemental Operating and Financial Data package supplements the information provided in our quarterly and annual reports filed with the Securities and Exchange Commission. Additional information about us and our properties is also available at our website www.digitalrealty.com.

 

Page 4


DIGITAL REALTY TRUST, INC.

Third Quarter 2011

 

Corporate Information

Stock Listing Information

The stock of Digital Realty Trust, Inc. is traded primarily on the New York Stock Exchange under the following symbol:

 

Common Stock:

  

  

DLR

Series E Preferred Stock:

  

  

DLRPRE

Note that symbols may vary by stock quote provider.

  

  

Credit Ratings

  

  

Standard & Poors

  

  

Corporate Credit Rating

  

BBB

  

(Stable 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, sell or hold any security, and may be revised or withdrawn at any time by the issuing organization in 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 Trust’s common stock (DLR):

 

 

 

3rd Quarter
2011

 

 

2nd Quarter
2011

 

 

1st Quarter
2011

 

 

4th Quarter
2010

 

 

3rd Quarter
2010

 

 

2nd Quarter
2010

 

 

1st Quarter
2010

 

High Price *

 

$

64.09

  

 

$

64.25

  

 

$

59.34

  

 

$

62.40

  

 

$

64.06

  

 

$

64.17

  

 

$

56.60

  

Low Price *

 

$

50.63

  

 

$

56.34

  

 

$

50.63

  

 

$

47.42

  

 

$

56.23

  

 

$

51.77

  

 

$

46.21

  

Closing Price, end of quarter *

 

$

55.16

  

 

$

61.78

  

 

$

58.14

  

 

$

51.54

  

 

$

61.70

  

 

$

57.68

  

 

$

54.20

  

Average daily trading volume *

 

 

1,198,958

  

 

 

962,400

  

 

 

1,192,245

  

 

 

1,665,345

  

 

 

1,094,573

  

 

 

1,254,652

  

 

 

975,779

  

Indicated dividend per common share **

 

$

2.720

  

 

$

2.720

  

 

$

2.720

  

 

$

2.120

  

 

$

2.120

  

 

$

1.920

  

 

$

1.920

  

Closing annual dividend yield, end of quarter

 

 

4.9

 

 

4.4

 

 

4.7

 

 

4.1

 

 

3.4

 

 

3.3

 

 

3.5

Closing shares and units outstanding, end of quarter ***

 

 

109,127,550

  

 

 

103,789,573

  

 

 

97,555,237

  

 

 

96,622,670

  

 

 

94,895,869

  

 

 

92,586,978

  

 

 

83,638,744

  

Closing market value of shares and units outstanding (thousands), end of quarter

 

$

6,019,476

  

 

$

6,412,120

  

 

$

5,671,861

  

 

$

4,979,932

  

 

$

5,855,075

  

 

$

5,340,417

  

 

$

4,533,220

  

 

*

New York Stock Exchange trades only.

 

**

On an annual basis.

 

***

As of September 30, 2011, the total number of shares and units includes 104,102,878 shares of common stock, 3,420,814 common units held by third parties and 1,603,858 common units, vested and unvested long-term incentive units and vested and unvested class C units held by officers and directors, and excludes all unexercised common stock options and all shares potentially issuable upon exchange of our 5.50% exchangeable senior debentures due 2029 or upon conversion of our series C and series D cumulative convertible preferred stock.

This Supplemental Operating and Financial Data package supplements the information provided in our quarterly and annual reports filed with the Securities and Exchange Commission. Additional information about us and our properties is also available at our website www.digitalrealtytrust.com.

 

Page 5


DIGITAL REALTY TRUST, INC.

Third Quarter 2011

 

Ownership Structure

As of September 30, 2011

LOGO

 

Partner

  

# of Units (2)

 

  

% Ownership

 

Digital Realty Trust, Inc.

  

 

104,102,878

  

  

 

95.4

Cambay Tele.com, LLC (3)

  

 

3,420,814

  

  

 

3.1

Directors, Executive Officers and Others

  

 

1,603,858

  

  

 

1.5

  

 

 

 

  

 

 

 

Total

  

 

109,127,550

  

  

 

100.0

  

 

 

 

  

 

 

 

 

(1)

Reflects limited partnership interests held by our officers and directors in the form of common units and vested and unvested long-term incentive units and excludes all unexercised common stock options.

 

(2)

The total number of shares and units includes 104,102,878 shares of common stock, 3,420,814 common units held by third parties and 1,603,858 common units, vested and unvested long-term incentive units and vested and unvested class C units held by officers and directors, and excludes all unexercised common stock options and all shares potentially issuable upon exchange of our 5.50% exchangeable senior debentures due 2029 or upon conversion of our series C and series D cumulative convertible preferred stock.

 

(3)

These third-party contributors received the common units (along with cash and our operating partnership’s assumption of debt) in exchange for their interests in 200 Paul Avenue 1-4, 1100 Space Park Drive, the eXchange colocation business and other specified assets and liabilities. Includes 409,913 common units held by the members of Cambay Tele.com, LLC.

 

Page 6


DIGITAL REALTY TRUST, INC.

Third Quarter 2011

 

Key Quarterly Financial Data

(Unaudited and dollars in thousands, except per share data)

 

 

 

30-Sep-11

 

 

30-Jun-11

 

 

31-Mar-11

 

 

31-Dec-10

 

 

30-Sep-10

 

 

30-Jun-10

 

 

31-Mar-10

 

Shares and Units at End of Quarter

 

 

 

 

 

 

 

Common shares outstanding

 

 

104,102,878

  

 

 

98,754,727

  

 

 

92,078,429

  

 

 

91,159,221

  

 

 

89,419,253

  

 

 

87,049,946

  

 

 

78,176,655

  

Common units outstanding

 

 

5,024,672

  

 

 

5,034,846

  

 

 

5,476,808

  

 

 

5,463,449

  

 

 

5,476,616

  

 

 

5,537,032

  

 

 

5,462,089

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shares and operating partnership units

 

 

109,127,550

  

 

 

103,789,573

  

 

 

97,555,237

  

 

 

96,622,670

  

 

 

94,895,869

  

 

 

92,586,978

  

 

 

83,638,744

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Enterprise Value

 

 

 

 

 

 

 

Market value of common equity (1)

 

$

6,019,476

  

 

$

6,412,120

  

 

$

5,671,861

  

 

$

4,979,932

  

 

$

5,855,075

  

 

$

5,340,417

  

 

$

4,533,220

  

Liquidation value of preferred equity

 

 

636,312

  

 

 

369,715

  

 

 

508,619

  

 

 

519,681

  

 

 

582,931

  

 

 

686,611

  

 

 

686,637

  

Total debt at balance sheet carrying value

 

 

2,797,040

  

 

 

3,067,577

  

 

 

3,055,429

  

 

 

2,806,954

  

 

 

2,721,599

  

 

 

2,124,710

  

 

 

2,168,209

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total enterprise value

 

$

9,452,828

  

 

$

9,849,412

  

 

$

9,235,909

  

 

$

8,306,567

  

 

$

9,159,605

  

 

$

8,151,738

  

 

$

7,388,066

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt/Total enterprise value

 

 

29.6

 

 

31.1

 

 

33.1

 

 

33.8

 

 

29.7

 

 

26.1

 

 

29.3

Selected Balance Sheet Data

 

 

 

 

 

 

 

Investments in real estate (before depreciation)

 

$

5,839,696

  

 

$

5,634,381

  

 

$

5,455,314

  

 

$

5,245,177

  

 

$

4,953,540

  

 

$

4,094,476

  

 

$

4,003,523

  

Total assets

 

 

5,826,412

  

 

 

5,658,405

  

 

 

5,537,345

  

 

 

5,329,483

  

 

 

5,170,899

  

 

 

4,501,032

  

 

 

4,147,586

  

Total liabilities

 

 

3,249,532

  

 

 

3,524,591

  

 

 

3,498,272

  

 

 

3,274,820

  

 

 

3,122,030

  

 

 

2,469,143

  

 

 

2,499,081

  

Selected Operating Data

 

 

 

 

 

 

 

Total operating revenues

 

$

273,476

  

 

$

267,881

  

 

$

250,741

  

 

$

238,672

  

 

$

237,486

  

 

$

197,464

  

 

$

191,779

  

Total operating expenses

 

 

201,850

  

 

 

191,161

  

 

 

176,076

  

 

 

166,112

  

 

 

177,085

  

 

 

143,314

  

 

 

136,584

  

Interest expense

 

 

37,078

  

 

 

39,334

  

 

 

36,082

  

 

 

36,583

  

 

 

36,737

  

 

 

33,162

  

 

 

30,902

  

Net income

 

 

37,689

  

 

 

38,228

  

 

 

39,012

  

 

 

36,298

  

 

 

23,626

  

 

 

19,902

  

 

 

25,586

  

Net income available to common stockholders

 

 

31,908

  

 

 

31,990

  

 

 

30,980

  

 

 

24,865

  

 

 

9,639

  

 

 

9,091

  

 

 

14,744

  

Financial Ratios

 

 

 

 

 

 

 

EBITDA (2)

 

$

148,500

  

 

$

148,768

  

 

$

142,023

  

 

$

138,994

  

 

$

117,930

  

 

$

104,188

  

 

$

103,894

  

Adjusted EBITDA (3)

 

$

154,281

  

 

$

155,006

  

 

$

150,055

  

 

$

150,427

  

 

$

131,917

  

 

$

114,999

  

 

$

114,736

  

Cash interest expense (4)

 

$

54,107

  

 

$

27,349

  

 

$

45,208

  

 

$

27,404

  

 

$

36,851

  

 

$

27,062

  

 

$

22,231

  

Fixed charges (5)

 

$

62,280

  

 

$

35,750

  

 

$

55,630

  

 

$

38,831

  

 

$

49,621

  

 

$

40,613

  

 

$

35,326

  

Debt service coverage ratio (6)

 

 

2.9

 

 

5.7

 

 

3.3

 

 

5.5

 

 

3.6

 

 

4.2

 

 

5.2

Fixed charge coverage ratio (7)

 

 

2.5

 

 

4.3

 

 

2.7

 

 

3.9

 

 

2.7

 

 

2.8

 

 

3.2

Profitability Measures

 

 

 

 

 

 

 

Net income per common share - basic

 

$

0.32

  

 

$

0.33

  

 

$

0.34

  

 

$

0.27

  

 

$

0.11

  

 

$

0.11

  

 

$

0.19

  

Net income per common share - diluted

 

$

0.31

  

 

$

0.33

  

 

$

0.33

  

 

$

0.27

  

 

$

0.11

  

 

$

0.11

  

 

$

0.18

  

Funds From Operations (FFO) per diluted share and unit (8)

 

$

1.01

  

 

$

1.02

  

 

$

1.02

  

 

$

0.98

  

 

$

0.81

  

 

$

0.76

  

 

$

0.81

  

Adjusted Funds From Operations (AFFO) per diluted share and unit (9)

 

$

0.84

  

 

$

0.86

  

 

$

0.90

  

 

$

0.87

  

 

$

0.75

  

 

$

0.65

  

 

$

0.67

  

Dividends per share and common unit

 

$

0.68

  

 

$

0.68

  

 

$

0.68

  

 

$

0.53

  

 

$

0.53

  

 

$

0.48

  

 

$

0.48

  

Diluted FFO payout ratio (10)

 

 

67.4

 

 

67.0

 

 

66.9

 

 

53.9

 

 

65.4

 

 

63.4

 

 

59.2

Diluted AFFO payout ratio (11)

 

 

81.0

 

 

79.1

 

 

75.4

 

 

60.8

 

 

70.7

 

 

73.3

 

 

71.4

Portfolio Statistics

 

 

 

 

 

 

 

Buildings

 

 

136

  

 

 

134

  

 

 

133

  

 

 

132

  

 

 

131

  

 

 

122

  

 

 

118

  

Properties

 

 

98

  

 

 

96

  

 

 

96

  

 

 

96

  

 

 

95

  

 

 

87

  

 

 

84

  

Net rentable square feet, excluding redevelopment space

 

 

15,262,859

  

 

 

14,967,288

  

 

 

14,628,267

  

 

 

14,584,914

  

 

 

14,456,127

  

 

 

13,270,035

  

 

 

13,211,992

  

Square feet held for redevelopment (12)

 

 

2,126,131

  

 

 

2,107,693

  

 

 

2,236,745

  

 

 

2,166,848

  

 

 

1,925,135

  

 

 

1,916,028

  

 

 

1,828,598

  

Occupancy at end of quarter (13)

 

 

93.7

 

 

93.9

 

 

93.5

 

 

94.6

 

 

95.0

 

 

95.0

 

 

95.2

Weighted average remaining lease term (years) (14)

 

 

7.0

  

 

 

6.8

  

 

 

6.9

  

 

 

6.9

  

 

 

6.9

  

 

 

7.2

  

 

 

7.2

  

Same store occupancy at end of quarter (13)(15)

 

 

94.2

 

 

94.2

 

 

93.8

 

 

94.9

 

 

94.8

 

 

94.9

 

 

95.2

 

(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 (including vested and unvested class C units), for shares of our common stock. Excludes shares issuable with respect to stock options that have been granted but have not yet been exercised, and also excludes all shares potentially issuable upon exchange of our 5.50% exchangeable senior debentures due 2029 or upon conversion of our series C and series D cumulative convertible preferred stock.

 

(2)

EBITDA is calculated as earnings before interest, taxes, depreciation and amortization. For a discussion of EBITDA, see page 31. For a reconciliation of net income available to common stockholders to EBITDA, see page 11.

 

(3)

Adjusted EBITDA is EBITDA adjusted for preferred dividends and minority interests. For a discussion of Adjusted EBITDA, see page 31. For a reconciliation of net income available to common stockholders to Adjusted EBITDA, see page 11.

 

(4)

Cash interest expense is interest expense per our statement of operations less amortization of debt discount and deferred financing fees and includes interest that we capitalized. For a reconciliation of GAAP interest expense to cash interest expense, see page 11.

 

(5)

Fixed charges consist of cash interest expense, scheduled debt principal payments and preferred dividends.

 

(6)

Debt service coverage ratio is Adjusted EBITDA divided by cash interest expense.

 

(7)

Fixed charge coverage ratio is Adjusted EBITDA divided by fixed charges.

 

(8)

For a definition and discussion of FFO, see page 31. For a reconciliation of net income available to common stockholders to FFO, see page 10.

 

(9)

For a definition and discussion of AFFO, see page 31. For a reconciliation of FFO to AFFO, see page 10.

 

(10)

Diluted FFO payout ratio is dividends declared per common share and unit divided by diluted FFO per share and unit.

 

(11)

Diluted AFFO payout ratio is dividends declared per common share and unit divided by diluted AFFO per share and unit.

 

(12)

Redevelopment space requires significant capital investment in order to develop data center facilities that are ready for use. Most often this is shell space. However, in certain circumstances this may include partially built datacenter space that was not completed by previous ownership and requires a large capital investment in order to build out the space.

 

(13)

Occupancy and same store occupancy exclude space held for redevelopment. For some of our properties, we calculate occupancy based on factors in addition to contractually leased square feet, including available power, required support space and common area.

 

(14)

Weighted average remaining lease term excludes renewal options, weighted by net rentable square feet.

 

(15)

Same store properties were acquired before December 31, 2009.

 

Page 7


DIGITAL REALTY TRUST, INC.

Third Quarter 2011

 

Consolidated Balance Sheets

(Dollars in thousands, except per share data)

 

 

  

September 30,
2011

 

 

December 31,
2010

 

 

  

(unaudited)

 

 

 

 

ASSETS

  

 

Investments in real estate

  

 

Land

  

$

522,309

  

 

$

478,629

  

Acquired ground leases

  

 

6,375

  

 

 

6,374

  

Buildings and improvements

  

 

5,001,137

  

 

 

4,459,047

  

Tenant improvements

  

 

291,452

  

 

 

283,492

  

  

 

 

 

 

 

 

 

Investments in real estate

  

 

5,821,273

  

 

 

5,227,542

  

Accumulated depreciation and amortization

  

 

(838,034

 

 

(660,700

  

 

 

 

 

 

 

 

Net investments in properties

  

 

4,983,239

  

 

 

4,566,842

  

Investment in unconsolidated joint ventures

  

 

18,423

  

 

 

17,635

  

  

 

 

 

 

 

 

 

Net investments in real estate

  

 

5,001,662

  

 

 

4,584,477

  

Cash and cash equivalents

  

 

38,732

  

 

 

11,719

  

Accounts and other receivables, net of allowance for doubtful accounts of $2,160 and $3,250 as of September 30, 2011 and December 31, 2010, respectively

  

 

90,647

  

 

 

70,337

  

Deferred rent

  

 

231,825

  

 

 

190,067

  

Acquired above market leases, net

  

 

31,822

  

 

 

40,539

  

Acquired in place lease value and deferred leasing costs, net

  

 

315,963

  

 

 

334,366

  

Deferred financing costs, net

  

 

22,084

  

 

 

22,825

  

Restricted cash

  

 

55,230

  

 

 

60,062

  

Other assets

  

 

38,447

  

 

 

15,091

  

  

 

 

 

 

 

 

 

Total Assets

  

$

5,826,412

  

 

$

5,329,483

  

  

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

  

 

Revolving credit facilities

  

$

163,113

  

 

$

333,534

  

Unsecured senior notes, net of discount

  

 

1,440,828

  

 

 

1,066,030

  

Exchangeable senior debentures, net of discount

  

 

266,400

  

 

 

353,702

  

Mortgage loans

  

 

916,199

  

 

 

1,043,188

  

Other secured loans

  

 

10,500

  

 

 

10,500

  

Accounts payable and other accrued liabilities

  

 

289,560

  

 

 

237,631

  

Accrued dividends and distributions

  

 

—  

  

 

 

51,210

  

Acquired below market leases, net

  

 

78,724

  

 

 

93,250

  

Security deposits and prepaid rents

  

 

84,208

  

 

 

85,775

  

  

 

 

 

 

 

 

 

Total Liabilities

  

 

3,249,532

  

 

 

3,274,820

  

  

 

 

 

 

 

 

 

Commitments and contingencies

  

 

—  

  

 

 

—  

  

EQUITY:

  

 

Stockholders’ equity:

  

 

Preferred Stock: $0.01 par value, 30,000,000 authorized:

  

 

Series C Cumulative Convertible Preferred Stock, 4.375%, $128,159 and $174,999 liquidation preference, respectively ($25.00 per share), 5,126,364 and 6,999,955 issued and outstanding as of September 30, 2011 and December 31, 2010, respectively

  

 

123,820

  

 

 

169,067

  

Series D Cumulative Convertible Preferred Stock, 5.500%, $220,653 and $344,683 liquidation preference, respectively ($25.00 per share), 8,826,115 and 13,787,300 issued and outstanding as of September 30, 2011 and December 31, 2010, respectively

  

 

213,361

  

 

 

333,274

  

Series E Cumulative Redeemable Preferred Stock, 7.000%, $287,500 and $0 liquidation preference, respectively ($25.00 per share), 11,500,000 and 0 issued and outstanding as of September 30, 2011 and December 31, 2010, respectively

  

 

277,402

  

 

 

—  

  

Common Stock: $0.01 par value, 145,000,000 authorized, 104,102,878 and 91,159,221 shares issued and outstanding as of September 30, 2011 and December 31, 2010, respectively

  

 

1,038

  

 

 

909

  

Additional paid-in capital

  

 

2,404,305

  

 

 

1,849,497

  

Dividends in excess of earnings

  

 

(452,590

 

 

(348,148

Accumulated other comprehensive income, net

  

 

(50,993

 

 

(42,081

  

 

 

 

 

 

 

 

Total stockholders’ equity

  

 

2,516,343

  

 

 

1,962,518

  

  

 

 

 

 

 

 

 

Noncontrolling interests:

  

 

Noncontrolling interest in operating partnership

  

 

47,504

  

 

 

52,436

  

Noncontrolling interest in consolidated joint ventures

  

 

13,033

  

 

 

39,709

  

  

 

 

 

 

 

 

 

Total noncontrolling interests

  

 

60,537

  

 

 

92,145

  

  

 

 

 

 

 

 

 

Total Equity

  

 

2,576,880

  

 

 

2,054,663

  

  

 

 

 

 

 

 

 

Total Liabilities and Equity

  

$

5,826,412

  

 

$

5,329,483

  

  

 

 

 

 

 

 

 

 

Page 8


DIGITAL REALTY TRUST, INC.

Third Quarter 2011

 

Consolidated Quarterly Statements of Operations

(unaudited and in thousands, except share and per share data)

 

 

  

Three Months Ended

 

 

  

30-Sep-11

 

 

30-Jun-11

 

 

31-Mar-11

 

 

31-Dec-10

 

 

30-Sep-10

 

 

30-Jun-10

 

 

31-Mar-10

 

Rental

  

$

206,846

  

 

$

202,806

  

 

$

196,795

  

 

$

189,684

  

 

$

184,204

  

 

$

156,831

  

 

$

151,306

  

Tenant reimbursements

  

 

56,656

  

 

 

51,311

  

 

 

51,834

  

 

 

46,451

  

 

 

52,975

  

 

 

39,597

  

 

 

39,059

  

Construction management

  

 

9,372

  

 

 

13,759

  

 

 

1,817

  

 

 

2,166

  

 

 

307

  

 

 

1,036

  

 

 

1,414

  

Other

  

 

602

  

 

 

5

  

 

 

295

  

 

 

371

  

 

 

—  

  

 

 

—  

  

 

 

—  

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating revenues

  

 

273,476

  

 

 

267,881

  

 

 

250,741

  

 

 

238,672

  

 

 

237,486

  

 

 

197,464

  

 

 

191,779

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental property operating and maintenance

  

 

82,164

  

 

 

72,337

  

 

 

71,723

  

 

 

69,763

  

 

 

73,863

  

 

 

53,936

  

 

 

52,595

  

Property taxes

  

 

13,055

  

 

 

13,962

  

 

 

13,471

  

 

 

4,933

  

 

 

14,030

  

 

 

12,748

  

 

 

12,721

  

Insurance

  

 

1,961

  

 

 

1,998

  

 

 

2,051

  

 

 

2,384

  

 

 

2,168

  

 

 

1,846

  

 

 

1,735

  

Construction management

  

 

7,391

  

 

 

11,199

  

 

 

1,737

  

 

 

200

  

 

 

293

  

 

 

470

  

 

 

647

  

Depreciation and amortization

  

 

79,047

  

 

 

76,848

  

 

 

73,918

  

 

 

76,383

  

 

 

70,128

  

 

 

59,860

  

 

 

57,532

  

General and administrative

  

 

14,600

  

 

 

14,077

  

 

 

12,405

  

 

 

12,225

  

 

 

11,878

  

 

 

12,574

  

 

 

10,519

  

Transactions

  

 

3,632

  

 

 

740

  

 

 

681

  

 

 

224

  

 

 

4,666

  

 

 

1,715

  

 

 

833

  

Other

  

 

—  

  

 

 

—  

  

 

 

90

  

 

 

—  

  

 

 

59

  

 

 

165

  

 

 

2

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

  

 

201,850

  

 

 

191,161

  

 

 

176,076

  

 

 

166,112

  

 

 

177,085

  

 

 

143,314

  

 

 

136,584

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

  

 

71,626

  

 

 

76,720

  

 

 

74,665

  

 

 

72,560

  

 

 

60,401

  

 

 

54,150

  

 

 

55,195

  

Equity in earnings of unconsolidated joint ventures

  

 

1,390

  

 

 

1,058

  

 

 

1,208

  

 

 

1,260

  

 

 

1,061

  

 

 

955

  

 

 

1,978

  

Interest and other income

  

 

2,218

  

 

 

380

  

 

 

264

  

 

 

224

  

 

 

327

  

 

 

34

  

 

 

31

  

Interest expense

  

 

(37,078

 

 

(39,334

 

 

(36,082

 

 

(36,583

 

 

(36,737

 

 

(33,162

 

 

(30,902

Tax expense

  

 

(461

 

 

(233

 

 

(428

 

 

(258

 

 

(343

 

 

(534

 

 

(716

Loss from early extinguishment of debt

  

 

(6

 

 

(363

 

 

(615

 

 

(905

 

 

(1,083

 

 

(1,541

 

 

—  

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

  

 

37,689

  

 

 

38,228

  

 

 

39,012

  

 

 

36,298

  

 

 

23,626

  

 

 

19,902

  

 

 

25,586

  

Net income attributable to noncontrolling interests

  

 

(1,345

 

 

(1,525

 

 

(1,510

 

 

(1,077

 

 

(590

 

 

(710

 

 

(741

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Digital Realty Trust, Inc.

  

 

36,344

  

 

 

36,703

  

 

 

37,502

  

 

 

35,221

  

 

 

23,036

  

 

 

19,192

  

 

 

24,845

  

Preferred stock dividends

  

 

(4,436

 

 

(4,713

 

 

(6,522

 

 

(7,608

 

 

(9,194

 

 

(10,101

 

 

(10,101

Costs on redemption of preferred stock

  

 

—  

  

 

 

—  

  

 

 

—  

  

 

 

(2,748

 

 

(4,203

 

 

—  

  

 

 

—  

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholders

  

$

31,908

  

 

$

31,990

  

 

$

30,980

  

 

$

24,865

  

 

$

9,639

  

 

$

9,091

  

 

$

14,744

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share available to common stockholders - basic

  

$

0.32

  

 

$

0.33

  

 

$

0.34

  

 

$

0.27

  

 

$

0.11

  

 

$

0.11

  

 

$

0.19

  

Net income per share available to common stockholders - diluted

  

$

0.31

  

 

$

0.33

  

 

$

0.33

  

 

$

0.27

  

 

$

0.11

  

 

$

0.11

  

 

$

0.18

  

Weighted-average shares outstanding - basic

  

 

100,588,235

  

 

 

96,295,585

  

 

 

91,428,355

  

 

 

90,698,033

  

 

 

87,908,953

  

 

 

80,542,329

  

 

 

77,770,691

  

Weighted-average shares outstanding - diluted

  

 

101,912,342

  

 

 

97,511,811

  

 

 

92,600,215

  

 

 

92,448,830

  

 

 

90,136,911

  

 

 

83,021,817

  

 

 

80,612,660

  

Weighted-average fully diluted shares and units

  

 

105,478,907

  

 

 

102,272,613

  

 

 

98,117,454

  

 

 

97,330,548

  

 

 

95,042,658

  

 

 

88,295,639

  

 

 

86,075,069

  

 

Page 9


DIGITAL REALTY TRUST, INC.

Third Quarter 2011

 

Funds From Operations (FFO)

(unaudited and in thousands, except per share data)

 

 

  

Three Months Ended

 

 

  

30-Sep-11

 

 

30-Jun-11

 

 

31-Mar-11

 

 

31-Dec-10

 

 

30-Sep-10

 

 

30-Jun-10

 

 

31-Mar-10

 

Reconciliation of net income available to common stockholders to FFO (Note):

  

 

 

 

 

 

 

Net income available to common stockholders

  

$

31,908

  

 

$

31,990

  

 

$

30,980

  

 

$

24,865

  

 

$

9,639

  

 

$

9,091

  

 

$

14,744

  

Adjustments:

  

 

 

 

 

 

 

Noncontrolling interests in operating partnership

  

 

1,421

  

 

 

1,582

  

 

 

1,652

  

 

 

1,336

  

 

 

537

  

 

 

560

  

 

 

973

  

Real estate related depreciation and amortization (1)

  

 

78,550

  

 

 

76,405

  

 

 

73,506

  

 

 

75,983

  

 

 

69,810

  

 

 

59,517

  

 

 

57,175

  

Real estate related depreciation and amortization related to investment in unconsolidated joint ventures

  

 

918

  

 

 

893

  

 

 

892

  

 

 

724

  

 

 

1,058

  

 

 

688

  

 

 

773

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO available to common stockholders and unitholders

  

$

112,797

  

 

$

110,870

  

 

$

107,030

  

 

$

102,908

  

 

$

81,044

  

 

$

69,856

  

 

$

73,665

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO per share and unit:

  

 

 

 

 

 

 

Basic

  

$

1.07

  

 

$

1.10

  

 

$

1.11

  

 

$

1.08

  

 

$

0.87

  

 

$

0.81

  

 

$

0.89

  

Diluted (2)

  

$

1.01

  

 

$

1.02

  

 

$

1.02

  

 

$

0.98

  

 

$

0.81

  

 

$

0.76

  

 

$

0.81

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares and units outstanding — basic

  

 

105,069

  

 

 

101,056

  

 

 

96,303

  

 

 

95,580

  

 

 

93,421

  

 

 

86,150

  

 

 

83,233

  

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

  

 

120,235

  

 

 

117,845

  

 

 

115,730

  

 

 

115,618

  

 

 

113,235

  

 

 

106,386

  

 

 

104,142

  

(1)    Real estate related depreciation and amortization was computed as follows:

       

 

Depreciation and amortization per income statement

  

$

79,047

  

 

$

76,848

  

 

$

73,918

  

 

$

76,383

  

 

$

70,128

  

 

$

59,860

  

 

$

57,532

  

Non-real estate depreciation

  

 

(497

 

 

(443

 

 

(412

 

 

(400

 

 

(318

 

 

(343

 

 

(357

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

$

78,550

  

 

$

76,405

  

 

$

73,506

  

 

$

75,983

  

 

$

69,810

  

 

$

59,517

  

 

$

57,175

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2)    At September 30, 2011, we had 5,126 series C convertible preferred shares and 8,826 series D convertible preferred shares outstanding that were convertible into 2,784 common shares and 5,604 common shares on a weighted average basis for the three months ended September 30, 2011, respectively. For the three and nine months ended September 30, 2011, we have excluded the effect of dilutive series E preferred stock, that may be converted upon the occurrence of specified change in control transactions as described in the articles supplementary governing the series E preferred stock, which we consider highly improbable; if included, the dilutive effect for the three and nine months ended September 30, 2011 would be 914 and 308 shares, respectively. In addition, we had a balance of $266,400 of 5.50% exchangeable senior debentures that were exchangeable for 6,368 common shares on a weighted average basis for the three months ended September 30, 2011. See below for calculations of diluted FFO available to common stockholders and unitholders and weighted average common stock and units outstanding.

               

FFO available to common stockholders and unitholders

  

$

112,797

  

 

$

110,870

  

 

$

107,030

  

 

$

102,908

  

 

$

81,044

  

 

$

69,856

  

 

$

73,665

  

Add: Series C convertible preferred dividends

  

 

1,402

  

 

 

1,441

  

 

 

1,832

  

 

 

1,914

  

 

 

1,914

  

 

 

1,914

  

 

 

1,914

  

Add: Series D convertible preferred dividends

  

 

3,034

  

 

 

3,272

  

 

 

4,690

  

 

 

4,739

  

 

 

4,739

  

 

 

4,742

  

 

 

4,742

  

Add: 5.50% exchangeable senior debentures interest expense

  

 

4,050

  

 

 

4,050

  

 

 

4,050

  

 

 

4,050

  

 

 

4,050

  

 

 

4,050

  

 

 

4,050

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO available to common stockholders and unitholders — diluted

  

$

121,283

  

 

$

119,633

  

 

$

117,602

  

 

$

113,611

  

 

$

91,747

  

 

$

80,562

  

 

$

84,371

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common stock and units outstanding

  

 

105,069

  

 

 

101,056

  

 

 

96,303

  

 

 

95,580

  

 

 

93,421

  

 

 

86,150

  

 

 

83,233

  

Add: Effect of dilutive securities (excl. series C & D convert. preferred stock & 5.50% debentures)

  

 

410

  

 

 

1,216

  

 

 

1,172

  

 

 

1,751

  

 

 

1,622

  

 

 

2,146

  

 

 

2,842

  

Add: Effect of dilutive series C convertible preferred stock

  

 

2,784

  

 

 

2,865

  

 

 

3,652

  

 

 

3,703

  

 

 

3,666

  

 

 

3,657

  

 

 

3,657

  

Add: Effect of dilutive series D convertible preferred stock

  

 

5,604

  

 

 

6,419

  

 

 

8,333

  

 

 

8,314

  

 

 

8,316

  

 

 

8,238

  

 

 

8,215

  

Add: Effect of dilutive 5.50% exchangeable senior debentures

  

 

6,368

  

 

 

6,289

  

 

 

6,270

  

 

 

6,270

  

 

 

6,210

  

 

 

6,195

  

 

 

6,195

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common stock and units outstanding — diluted

  

 

120,235

  

 

 

117,845

  

 

 

115,730

  

 

 

115,618

  

 

 

113,235

  

 

 

106,386

  

 

 

104,142

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note: For a definition and discussion of FFO, see page 31.

Adjusted Funds From Operations (AFFO)

(unaudited and in thousands)

 

 

  

Three Months Ended

 

 

  

30-Sep-11

 

 

30-Jun-11

 

 

31-Mar-11

 

 

31-Dec-10

 

 

30-Sep-10

 

 

30-Jun-10

 

 

31-Mar-10

 

Reconciliation of FFO to AFFO (Note):

  

 

 

 

 

 

 

FFO available to common stockholders and unitholders

  

$

112,797

  

 

$

110,870

  

 

$

107,030

  

 

$

102,908

  

 

$

81,044

  

 

$

69,856

  

 

$

73,665

  

Adjustments:

  

 

 

 

 

 

 

Non-real estate depreciation

  

 

497

  

 

 

443

  

 

 

412

  

 

 

400

  

 

 

318

  

 

 

343

  

 

 

357

  

Amortization of deferred financing costs

  

 

2,285

  

 

 

2,510

  

 

 

2,451

  

 

 

2,410

  

 

 

2,715

  

 

 

2,929

  

 

 

2,406

  

Amortization of debt discount

  

 

241

  

 

 

749

  

 

 

998

  

 

 

933

  

 

 

781

  

 

 

1,082

  

 

 

1,025

  

Non-cash compensation

  

 

3,560

  

 

 

3,739

  

 

 

2,963

  

 

 

2,803

  

 

 

2,942

  

 

 

3,229

  

 

 

2,188

  

Loss from early extinguishment of debt

  

 

6

  

 

 

363

  

 

 

615

  

 

 

905

  

 

 

1,083

  

 

 

1,541

  

 

 

—  

  

Straight line rents

  

 

(14,166

 

 

(14,305

 

 

(12,749

 

 

(11,948

 

 

(11,861

 

 

(10,560

 

 

(11,099

Above and below market rent amortization

  

 

(1,989

 

 

(1,860

 

 

(1,814

 

 

(1,813

 

 

(1,800

 

 

(2,422

 

 

(2,283

Capitalized leasing compensation

  

 

(2,734

 

 

(2,721

 

 

(2,443

 

 

(1,930

 

 

(1,760

 

 

(2,026

 

 

(1,887

Recurring capital expenditures and tenant improvements

  

 

(2,650

 

 

(777

 

 

(687

 

 

(2,667

 

 

(735

 

 

(178

 

 

(2,024

Capitalized leasing commissions

  

 

(5,350

 

 

(6,486

 

 

(3,029

 

 

(4,797

 

 

(2,925

 

 

(4,866

 

 

(3,156

Costs on redemption of preferred stock

  

 

—  

  

 

 

—  

  

 

 

—  

  

 

 

2,748

  

 

 

4,203

  

 

 

—  

  

 

 

—  

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AFFO available to common stockholders and unitholders

  

$

92,497

  

 

$

92,525

  

 

$

93,747

  

 

$

89,952

  

 

$

74,005

  

 

$

58,928

  

 

$

59,192

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note: For a definition and discussion of AFFO, see page 31. For a reconciliation of net income available to common stockholders to FFO, see above table.

 

Page 10


DIGITAL REALTY TRUST, INC.

Third Quarter 2011

 

Reconciliation of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (1)

(unaudited and in thousands)

 

 

  

Three Months Ended

 

 

  

30-Sep-11

 

 

30-Jun-11

 

 

31-Mar-11

 

 

31-Dec-10

 

 

30-Sep-10

 

 

30-Jun-10

 

 

31-Mar-10

 

Net income available to common stockholders

  

$

31,908

  

 

$

31,990

  

 

$

30,980

  

 

$

24,865

  

 

$

9,639

  

 

$

9,091

  

 

$

14,744

  

Interest

  

 

37,078

  

 

 

39,334

  

 

 

36,082

  

 

 

36,583

  

 

 

36,737

  

 

 

33,162

  

 

 

30,902

  

Loss from early extinguishment of debt

  

 

6

  

 

 

363

  

 

 

615

  

 

 

905

  

 

 

1,083

  

 

 

1,541

  

 

 

—  

  

Taxes

  

 

461

  

 

 

233

  

 

 

428

  

 

 

258

  

 

 

343

  

 

 

534

  

 

 

716

  

Depreciation and amortization

  

 

79,047

  

 

 

76,848

  

 

 

73,918

  

 

 

76,383

  

 

 

70,128

  

 

 

59,860

  

 

 

57,532

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

  

 

148,500

  

 

 

148,768

  

 

 

142,023

  

 

 

138,994

  

 

 

117,930

  

 

 

104,188

  

 

 

103,894

  

Noncontrolling interests

  

 

1,345

  

 

 

1,525

  

 

 

1,510

  

 

 

1,077

  

 

 

590

  

 

 

710

  

 

 

741

  

Preferred stock dividends

  

 

4,436

  

 

 

4,713

  

 

 

6,522

  

 

 

7,608

  

 

 

9,194

  

 

 

10,101

  

 

 

10,101

  

Costs on redemption of preferred stock

  

 

—  

  

 

 

—  

  

 

 

—  

  

 

 

2,748

  

 

 

4,203

  

 

 

—  

  

 

 

—  

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

  

$

154,281

  

 

$

155,006

  

 

$

150,055

  

 

$

150,427

  

 

$

131,917

  

 

$

114,999

  

 

$

114,736

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)    For the definition and discussion of EBITDA and Adjusted EBITDA, see page 31.

       

 

Financial Ratios

(unaudited and in thousands)

  

 

 

 

 

 

 

 

  

30-Sep-11

 

 

30-Jun-11

 

 

31-Mar-11

 

 

31-Dec-10

 

 

30-Sep-10

 

 

30-Jun-10

 

 

31-Mar-10

 

Total GAAP interest expense

  

$

37,078

  

 

$

39,334

  

 

$

36,082

  

 

$

36,583

  

 

$

36,737

  

 

$

33,162

  

 

$

30,902

  

Capitalized interest

  

 

4,755

  

 

 

4,222

  

 

 

4,666

  

 

 

3,100

  

 

 

2,723

  

 

 

2,511

  

 

 

1,907

  

Change in accrued interest and other non-cash amounts

  

 

12,274

  

 

 

(16,207

 

 

4,460

  

 

 

(12,279

 

 

(2,609

 

 

(8,611

 

 

(10,578

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash interest expense (a)

  

 

54,107

  

 

 

27,349

  

 

 

45,208

  

 

 

27,404

  

 

 

36,851

  

 

 

27,062

  

 

 

22,231

  

Scheduled debt principal payments and preferred dividends

  

 

8,173

  

 

 

8,401

  

 

 

10,422

  

 

 

11,427

  

 

 

12,770