DuPont Fabros Technology, Inc. Reports Third Quarter 2012 Results Revenues up 16% ACC6 Phase I 100% Leased PR Newswire WASHINGTON, Oct. 24, 2012 WASHINGTON, Oct. 24, 2012 /PRNewswire/ --DuPont Fabros Technology, Inc. (NYSE: DFT) today reported results for the quarter ended September 30, 2012. All per share results are reported on a fully diluted basis. (Logo: http://photos.prnewswire.com/prnh/20120104/MM29780LOGO ) Highlights oAs of today, the company's overall operating portfolio is 85% leased with the stabilized portfolio at 96% leased, and the three properties remaining in the non-stabilized portfolio at 55% leased. In the development portfolio, ACC6 Phase II is 67% pre-leased. oThird quarter 2012 activity: oSigned two leases totaling 3.47 megawatts ("MW") and 18,116 raised square feet. oCommenced four leases totaling 5.85 MW and 30,369 raised square feet. oExtended the maturity of three leases totaling 9.91 MW and 68,687 raised square feet by a weighted average of 6.6 years. These leases were originally scheduled to expire from 2013 to 2017. oSubsequent to the third quarter: oExtended the maturity of one lease totaling 13.90 MW and 80,000 raised square feet by 8.2 years.This lease was originally scheduled to expire from 2016 to 2018. Hossein Fateh, President and Chief Executive Officer, said, "We continue to remain focused on leasing up our available inventory in all of our markets, with ACC6 Phase I in Ashburn, Virginia now 100% leased. In addition, we made significant progress on extending the lease maturity with three important tenants which includes the extension of the entire ACC3 lease through 2024 to 2026. As of today, leases that represent less than 15% of our annualized base rent are scheduled to expire prior to January 2017." Third Quarter 2012 Results For the quarter ended September 30, 2012, the company reported earnings of $0.11 per share compared to $0.22 per share for the third quarter of 2011. The decrease of $0.11 in earnings per share is primarily due to lower capitalized interest and higher preferred dividends. Revenues increased 16%, or $11.6 million, to $85.4 million for the third quarter of 2012 over the third quarter of 2011. The increase in revenues is primarily due to new leases commencing at our non-stabilized properties partially offset by one lease that expired on April 30, 2012. Funds from Operations ("FFO") for the quarter ended September 30, 2012 was $0.38 per share compared to $0.44 per share for the third quarter of 2011. The decrease of $0.06 per share is primarily due to: oHigher operating income, excluding depreciation, of $0.06 per share (primarily due to new leases commencing of $0.12 per share offset by unreimbursed property operating expenses, real estate taxes and insurance related to the properties that are not fully leased of $0.06 per share). oHigher fixed charges of $0.12 per share (lower capitalized interest expense of $0.10 per share and additional preferred dividends of $0.02 per share). Nine Months Ended September 30, 2012 Results For the nine months ended September 30, 2012, the company reported earnings of $0.30 per share compared to $0.59 per share for the year ago period.The decrease of $0.29 in earnings per share is primarily due to lower capitalized interest and higher preferred dividends. Revenues increased 16%, or $33.4 million, to $246.5 million for the nine months ended September 30, 2012 over the year ago period. The increase in revenues is primarily due to new leases commencing at our non-stabilized properties partially offset by one lease that expired on April 30, 2012. FFO for the nine months ended September 30, 2012 was $1.10 per share compared to $1.24 per share for the year ago period. The decrease of $0.14 per share is primarily due to: oHigher operating income, excluding depreciation, of $0.17 per share (primarily due to new leases commencing of $0.29 per share offset by unreimbursed property operating expenses, real estate taxes and insurance of $0.12 per share). oHigher fixed charges of $0.31 per share (lower capitalized interest expense of $0.25 per share and additional preferred dividends of $0.06 per share). Portfolio Update During the third quarter 2012, the company: oSigned two leases totaling 3.47 MW and 18,116 raised square feet with an average lease term of 5.5 years. oOne lease was at ACC6 Phase I totaling 2.17 MW and 9,966 raised square feet. This lease commenced in the third quarter of 2012. oOne lease was at CH1 Phase II totaling 1.30 MW and 8,150 raised square feet. This lease commenced in the third quarter of 2012. oExtended the maturity of three leases totaling 9.91 MW and 68,687 raised square feet by a weighted average of 6.6 years. oOne lease was at VA3 totaling 2.60 MW and 27,436 raised square feet. This lease was extended from a maturity date of 2013 to maturing in two increments in 2017 and 2020. oOne lease was at CH1 totaling 3.90 MW and 24,851 raised square feet. This lease was extended from maturities ranging from 2015 to 2017 to maturities ranging from 2022 to 2024. oOne lease was at ACC5 totaling 3.41MW and 16,400 raised square feet. This lease was extended from maturities ranging from 2015 to 2017 to maturities ranging from 2022 to 2024. oSubsequent to the third quarter, the company extended the lease at ACC3 totaling 13.90 MW and 80,000 raised square feet by 8.2 years. Year-to-date, the company: oSigned nine leases totaling 27.86 MW and 139,713 raised square feet with an average lease term of 11.4 years as compared to thirteen leases, 23.62 MW and 125,716 raised square feet for the prior year earnings release period. oCommenced thirteen leases totaling 30.89 MW and 162,855 raised square feet as compared to eleven leases, 13.46 MW and 65,093 raised square feet for the prior year earnings release period. oSigned four lease extensions totaling 23.81 MW and 148,687 raised square feet for a weighted average additional 7.5 years as compared to one lease extension, 9.60 MW and 90,000 raised square feet for the prior year earnings release period. 2012 Guidance The company is tightening its 2012 FFO guidance range to $1.48 to $1.52 per share from $1.47 to $1.54 per share. The 2012 updated lower end of the guidance range assumes no additional leases commencing this year. The company has established an FFO guidance range of $0.38 to $0.42 per share for the fourth quarter of 2012. Third Quarter 2012 Conference Call and Webcast Information The company will host a conference call to discuss these results on Thursday, October 25, 2012 at 10:00 a.m. ET. To access the live call, please visit the Investor Relations section of the company's website at www.dft.com or dial 1-800-860-2442 (domestic) or 1-412-858-4600 (international). A replay will be available for seven days by dialing 1-877-344-7529 (domestic) or 1-412-317-0088 (international) using passcode 10019215. The webcast will be archived on the company's website for one year at www.dft.com on the Presentations & Webcasts page. Fourth Quarter 2012 Conference Call DuPont Fabros Technology, Inc. expects to announce fourth quarter 2012 results on Tuesday, February 5, 2013 and to host a conference call to discuss those results at 10:00 a.m. ET on Wednesday, February 6, 2013. About DuPont Fabros Technology, Inc. DuPont Fabros Technology, Inc. (NYSE: DFT) is a leading owner, developer, operator and manager of large multi-tenant wholesale data centers. The Company's facilities are designed to offer highly specialized, efficient, carrier-neutral and safe computing environments in a low-cost operating model. The Company's customers outsource their mission critical applications and include national and international enterprises across numerous industries, such as technology, Internet content providers, media, communications, cloud-based, healthcare and financial services. The Company's ten data centers are located in four major U.S. markets, which total 2.4 million gross square feet and 205 megawatts of available critical load to power the servers and computing equipment of its customers. DuPont Fabros Technology, Inc., a real estate investment trust (REIT) is headquartered in Washington, DC. For more information, please visit www.dft.com. Forward-Looking Statements Certain statements contained in this press release may be deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The matters described in these forward-looking statements include expectations regarding future events, results and trends and are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond the company's control. The company faces many risks that could cause its actual performance to differ materially from the results contemplated by its forward-looking statements, including, without limitation, the risk that its assumptions underlying its full year and fourth quarter 2012 FFO guidance are not realized, the risks related to the leasing of available space to third-party tenants, including delays in executing new leases and failure to negotiate leases on terms that will enable it to achieve its expected returns, the risk that the company may be unable to obtain new financing on favorable terms to facilitate, among other things, future development projects, the risks commonly associated with construction and development of new facilities (including delays and/or cost increases associated with the completion of new developments), risks relating to obtaining required permits and compliance with permitting, zoning, land-use and environmental requirements, the risk that the company will not declare and pay dividends as anticipated for 2012 and the risk that the company may not be able to maintain its qualification as a REIT for federal tax purposes. The periodic reports that the company files with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2011 and its quarterly reports on Form 10-Q for the quarters ended March 31, 2012 and June 30, 2012, contain detailed descriptions of these and many other risks to which the company is subject. These reports are available on our website at www.dft.com. Because of the risks described above and other unknown risks, the company's actual results, performance or achievements may differ materially from the results, performance or achievements contemplated by its forward-looking statements. The information set forth in this news release represents management's expectations and intentions only as of the date of this press release. The company assumes no responsibility to issue updates to the contents of this press release. DUPONT FABROS TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited and in thousands except share and per share data) Three months ended September Nine months ended September 30, 30, 2012 2011 2012 2011 Revenues: Base rent $ $ $ $ 56,641 48,422 165,584 144,125 Recoveries from 27,759 24,585 77,573 67,052 tenants Other revenues 1,046 777 3,329 1,862 Total revenues 85,446 73,784 246,486 213,039 Expenses: Property operating 24,524 21,526 70,360 58,372 costs Real estate taxes 4,631 1,285 9,215 4,464 and insurance Depreciation and 22,531 18,396 66,885 54,600 amortization General and 3,973 3,834 13,714 12,516 administrative Other expenses 734 441 2,146 958 Total expenses 56,393 45,482 162,320 130,910 Operating income 29,053 28,302 84,166 82,129 Interest income 33 71 112 474 Interest: Expense incurred (11,934 ) (3,928 ) (36,471 ) (17,106 ) Amortization of deferred financing (874 ) (490 ) (2,677 ) (1,636 ) costs Net income 16,278 23,955 45,130 63,861 Net income attributable to redeemable noncontrolling (2,181 ) (4,435 ) (5,757 ) (12,203 ) interests – operating partnership Net income attributable to 14,097 19,520 39,373 51,658 controlling interests Preferred stock (6,811 ) (5,572 ) (20,241 ) (15,301 ) dividends Net income $ $ $ $ attributable to 7,286 13,948 19,132 36,357 common shares Earnings per share – basic: Net income $ $ $ $ attributable to 0.11 0.22 0.30 0.59 common shares Weighted average common shares 62,994,500 61,973,869 62,820,979 60,912,532 outstanding Earnings per share – diluted: Net income $ $ $ $ attributable to 0.11 0.22 0.30 0.59 common shares Weighted average common shares 63,881,663 62,983,474 63,727,131 61,987,534 outstanding Dividends declared $ $ $ $ per common share 0.15 0.12 0.42 0.36 DUPONT FABROS TECHNOLOGY, INC. RECONCILIATIONS OF NET INCOME TO FFO AND AFFO ^(1) (unaudited and in thousands except share and per share data) Three months ended Nine months ended September 30, September 30, 2012 2011 2012 2011 Net income $ $ $ $ 16,278 23,955 45,130 63,861 Depreciation and 22,531 18,396 66,885 54,600 amortization Less: Non real estate depreciation and (251) (198) (785 ) (600) amortization FFO 38,558 42,153 111,230 117,861 Preferred stock dividends (6,811) (5,572) (20,241 ) (15,301) FFO attributable to $ $ $ $ common shares and OP 31,747 36,581 90,989 102,560 units Straight-line revenues (5,598) (6,566) (16,824 ) (29,518) Amortization of lease contracts above and below (763) (829) (2,595 ) (1,900) market value Compensation paid with 1,660 1,510 5,333 4,433 Company common shares AFFO $ $ $ $ 27,046 30,696 76,903 75,575 FFO attributable to common shares and OP $ $ $ $ units 0.38 0.44 1.10 1.24 per share - diluted AFFO per share - diluted $ $ $ $ 0.33 0.37 0.93 0.92 Weighted average common shares and OP units 82,713,851 82,474,712 82,630,663 82,433,216 outstanding - diluted Funds from operations, or FFO, is used by industry analysts and investors as a supplemental operating performance measure for REITs. The Company calculates FFO in accordance with the definition that was adopted by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. FFO, as defined by NAREIT, represents net income determined in accordance with GAAP, excluding extraordinary items as defined under GAAP, impairment charges on depreciable real estate assets (1) and gains or losses from sales of previously depreciated operating real estate assets, plus specified non-cash items, such as real estate asset depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. The Company also presents FFO attributable to common shares and OP units, which is FFO excluding preferred stock dividends. FFO attributable to common shares and OP units per share is calculated on a basis consistent with net income attributable to common shares and OP units and reflects adjustments to net income for preferred stock dividends. The Company uses FFO as a supplemental performance measure because, in excluding real estate related depreciation and amortization and gains and losses from property dispositions, it provides a performance measure that, when compared period over period, captures trends in occupancy rates, rental rates and operating expenses. The Company also believes that, as a widely recognized measure of the performance of equity REITs, FFO may be used by investors as a basis to compare the Company's operating performance with that of other REITs. However, because FFO excludes real estate related depreciation and amortization and captures neither the changes in the value of the Company's properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of the Company's properties, all of which have real economic effects and could materially impact the Company's results from operations, the utility of FFO as a measure of the Company's performance is limited. While FFO is a relevant and widely used measure of operating performance of equity REITs, other equity REITs may use different methodologies for calculating FFO and, accordingly, FFO as disclosed by such other REITs may not be comparable to the Company's FFO. Therefore, the Company believes that in order to facilitate a clear understanding of its historical operating results, FFO should be examined in conjunction with net income as presented in the consolidated statements of operations. FFO should not be considered as an alternative to net income or to cash flow from operating activities (each as computed in accordance with GAAP) or as an indicator of the Company's liquidity, nor is it indicative of funds available to meet the Company's cash needs, including its ability to pay dividends or make distributions. The Company also presents FFO with supplemental adjustments to arrive at Adjusted FFO ("AFFO"). AFFO is FFO attributable to common shares and OP units excluding straight-line revenue, non-cash stock based compensation, gain or loss on derivative instruments, acquisition of service agreements, below market lease amortization net of above market lease amortization and early extinguishment of debt costs. AFFO does not represent cash generated from operating activities in accordance with GAAP and therefore should not be considered an alternative to net income as an indicator of the Company's operating performance or as an alternative to cash flow provided by operations as a measure of liquidity and is not necessarily indicative of funds available to fund the Company's cash needs including the Company's ability to pay dividends. In addition, AFFO may not be comparable to similarly titled measurements employed by other companies. The Company's management uses AFFO in management reports to provide a measure of REIT operating performance that can be compared to other companies using AFFO. DUPONT FABROS TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (in thousands except share data) September 30, December 31, 2012 2011 (unaudited) ASSETS Income producing property: Land $ $ 73,197 63,393 Buildings and improvements 2,313,693 2,123,377 2,386,890 2,186,770 Less: accumulated depreciation (304,692 ) (242,245 ) Net income producing property 2,082,198 1,944,525 Construction in progress and land held for 204,961 320,611 development Net real estate 2,287,159 2,265,136 Cash and cash equivalents 14,716 14,402 Restricted cash — 174 Rents and other receivables 3,056 1,388 Deferred rent 143,686 126,862 Lease contracts above market value, net 10,530 11,352 Deferred costs, net 37,160 40,349 Prepaid expenses and other assets 32,092 31,708 Total assets $ 2,528,399 $ 2,491,371 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Line of credit $ $ — 20,000 Mortgage notes payable 140,900 144,800 Unsecured notes payable 550,000 550,000 Accounts payable and accrued liabilities 23,694 22,955 Construction costs payable 10,549 20,300 Accrued interest payable 14,270 2,528 Dividend and distribution payable 18,071 14,543 Lease contracts below market value, net 14,896 18,313 Prepaid rents and other liabilities 29,832 29,058 Total liabilities 802,212 822,497 Redeemable noncontrolling interests—operating 475,513 461,739 partnership Commitments and contingencies — — Stockholders' equity: Preferred stock, $.001 par value, 50,000,000 shares authorized: Series A cumulative redeemable perpetual preferred stock, 7,400,000 issued and 185,000 185,000 outstanding at September 30, 2012 and December31, 2011 Series B cumulative redeemable perpetual preferred stock, 6,650,000 issued and outstanding at September 30, 2012 and 4,050,000 shares issued 166,250 101,250 and outstanding at December31, 2011 Common stock, $.001 par value, 250,000,000 shares authorized, 63,296,253 shares issued and outstanding at 63 63 September 30, 2012 and 62,914,987 shares issued and outstanding at December 31, 2011 Additional paid in capital 899,361 927,902 Retained earnings (accumulated deficit) — (7,080 ) Total stockholders' equity 1,250,674 1,207,135 Total liabilities and stockholders' equity $ 2,528,399 $ 2,491,371 DUPONT FABROS TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited and in thousands) Nine months ended September 30, 2012 2011 Cash flow from operating activities Net income $ 45,130 $ 63,861 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 66,885 54,600 Straight line rent (16,824 ) (29,518 ) Amortization of deferred financing costs 2,677 1,636 Amortization of lease contracts above and (2,595 ) (1,900 ) below market value Compensation paid with Company common 5,333 4,433 shares Changes in operating assets and liabilities Restricted cash 174 223 Rents and other receivables (1,668 ) 954 Deferred costs (898 ) (1,672 ) Prepaid expenses and other assets (6,302 ) (2,903 ) Accounts payable and accrued liabilities 739 (1,728 ) Accrued interest payable 11,742 11,403 Prepaid rents and other liabilities (1,653 ) 3,697 Net cash provided by operating activities 102,740 103,086 Cash flow from investing activities Investments in real estate – development (82,754 ) (312,056 ) Land acquisition costs — (9,507 ) Interest capitalized for real estate (2,654 ) (23,967 ) under development Improvements to real estate (3,333 ) (3,147 ) Additions to non-real estate property (55 ) (203 ) Net cash used in investing activities (88,796 ) (348,880 ) Cash flow from financing activities Issuance of preferred stock, net of 62,685 97,450 offering costs Line of credit: Proceeds 15,000 — Repayments (35,000 ) — Mortgage notes payable: Repayments (3,900 ) (3,900 ) Return of escrowed proceeds — 1,104 Exercises of stock options 868 596 Payments of financing costs (2,084 ) (1,352 ) Dividends and distributions: Common shares (24,616 ) (21,833 ) Preferred shares (19,195 ) (13,753 ) Redeemable noncontrolling interests – (7,388 ) (7,641) operating partnership Net cash (used in) provided by financing (13,630 ) 50,671 activities Net increase (decrease) in cash and cash 314 (195,123 ) equivalents Cash and cash equivalents, beginning 14,402 226,950 Cash and cash equivalents, ending $ 14,716 $ 31,827 Supplemental information: Cash paid for interest $ 27,384 $ 29,670 Deferred financing costs capitalized for $ 161 $ 1,192 real estate under development Construction costs payable capitalized $ 10,549 $ 25,777 for real estate under development Redemption of operating partnership units $ 5,700 $ 58,300 Adjustments to redeemable noncontrolling $ 21,643 $ (17,401) interests – operating partnership DUPONT FABROS TECHNOLOGY, INC. Operating Properties As of September 30, 2012 Gross Raised Critical % % Property PropertyLocation YearBuilt/ Building Square Load Leased Renovated Area Feet MW (5) Commenced (2) (3) (4) (5) Stabilized (1) ACC2 Ashburn,VA 87,000 53,000 10.4 100% 100% 2001/2005 ACC3 Ashburn, VA 147,000 80,000 13.9 100% 100% 2001/2006 ACC4 Ashburn, VA 2007 347,000 172,000 36.4 100% 100% ACC5 Ashburn, VA 360,000 176,000 36.4 100% 100% 2009-2010 ACC6 Phase Ashburn, VA 2011 131,000 65,000 13.0 100% 100% I CH1 Phase ElkGroveVillage,IL 2008 285,000 122,000 18.2 98% 98% I VA3 Reston,VA 2003 256,000 147,000 13.0 56% 56% VA4 Bristow,VA 2005 230,000 90,000 9.6 100% 100% Subtotal—stabilized 1,843,000 905,000 150.9 96% 96% Completed not Stabilized CH1 Phase ElkGroveVillage,IL 2012 200,000 109,000 18.2 86% 71% II NJ1 Phase Piscataway, NJ 2010 180,000 88,000 18.2 36% 36% I SC1 Phase I Santa Clara, CA 2011 180,000 88,000 18.2 44% 44% Subtotal —non-stabilized 560,000 285,000 54.6 55% 50% Total Operating Properties 2,403,000 1,190,000 205.5 85% 84% (1) Stabilized operating properties are either 85% or more leased and commenced or have been in service for 24 months or greater. Gross building area is the entire building area, including raised square footage (the portion of gross building area where the tenants' computer (2) servers are located), tenant common areas, areas controlled by the Company (such as the mechanical, telecommunications and utility rooms) and, in some facilities, individual office and storage space leased on an as available basis to the tenants. Raised square footage is that portion of gross building area where the (3) tenants locate their computer servers. The Company considers raised square footage to be the net rentable square footage in each of its facilities. Critical load (also referred to as IT load or load used by tenants' (4) servers or related equipment) is the power available for exclusive use by tenants expressed in terms of megawatt, or MW, or kilowatt, or kW (1MW is equal to 1,000 kW). Percentage leased is expressed as a percentage of critical load that is subject to an executed lease. Percentage commenced is expressed as a percentage of critical load where the lease has commenced under generally (5) accepted accounting principles. Leases executed as of September 30, 2012 (including one lease amendment executed October 2012) represent $229 million of base rent on a straight-line basis and $225 million on a cash basis over the next twelve months. DUPONT FABROS TECHNOLOGY, INC. Lease Expirations As of September 30, 2012 The following table sets forth a summary schedule of lease expirations of the operating properties for each of the ten calendar years beginning with 2012. The information set forth in the table below assumes that tenants exercise no renewal options and takes into account tenants' early termination options. Raised Year of Number SquareFeet %ofLeased TotalkW %of %of Lease ofLeases Expiring Raised ofExpiring LeasedkW Annualized Expiration Expiring(1) (inthousands) SquareFeet Leases(3) BaseRent (2) 2012 — — — — — — 2013 (4) 2 8 0.8% 1,567 0.9% 0.9% 2014 6 35 3.5% 6,287 3.6% 3.7% 2015 4 70 7.0% 13,812 7.9% 7.1% 2016 (5) 4 32 3.2% 4,686 2.7% 2.6% 2017 (5) 9 66 6.7% 11,470 6.6% 6.3% 2018 (5) 10 118 11.9% 24,511 14.0% 14.3% 2019 11 168 16.9% 31,035 17.7% 16.3% 2020 9 96 9.7% 15,196 8.7% 9.2% 2021 7 130 13.1% 21,669 12.4% 13.9% After 2021 20 270 27.2% 44,597 25.5% 25.7% (5) Total 82 993 100% 174,830 100% 100% Represents 33 tenants with 82 lease expiration dates, including two leases (1) that have not yet commenced as of October 24, 2012 for one existing tenant. Top three tenants represent 47% of annualized base rent as of September 30, 2012 (including one lease amendment executed October 2012). Raised square footage is that portion of gross building area where the (2) tenants locate their computer servers. The Company considers raised square footage to be the net rentable square footage in each of its facilities. (3) One MW is equal to 1,000 kW. One lease has an option to terminate on six months notice and has a scheduled maturity on September 30, 2013 with no notice received as of (4) today. Notice has been provided on the second lease and it will expire on December 31, 2013, representing 2,800 raised square feet, 430 kW of critical load and 0.2% of annualized base rent. Reflects the fact that, in October 2012, the Company entered into a lease amendment with one tenant, which lease provided for scheduled lease (5) expirations of 13,900 kW of critical load between 2016 and 2018, to extend the term of each lease expiration by 8.2 years. This lease represents 80,000 raised square feet and 8.0% of leased raised square feet as of September 30, 2012. DUPONT FABROS TECHNOLOGY, INC. Development Projects As of September 30, 2012 ($ in thousands) Gross Raised Critical Estimated Construction % Property PropertyLocation Building Square Load Total inProgress& Area(1) Feet(2) MW(3) Cost(4) LandHeldfor Pre-leased Development(5) Current Development Projects ACC6PhaseII Ashburn, VA 131,000 65,000 13.0 $115,000 $ 67% 88,243 Future Development Projects/Phases SC1 Phase II Santa Clara, CA 180,000 88,000 18.2 61,653 NJ1 Phase II Piscataway, NJ 180,000 88,000 18.2 39,212 360,000 176,000 36.4 100,865 Land Held for Development ACC7 Phase I Ashburn, VA 360,000 176,000 36.4 10,191 /II ACC8 Ashburn, VA 100,000 50,000 10.4 3,670 SC2PhaseI/II Santa Clara, CA 300,000 171,000 36.4 1,992 760,000 397,000 83.2 15,853 Total 1,251,000 638,000 132.6 $ 204,961 Gross building area is the entire building area, including raised square footage (the portion of gross building area where the tenants' computer (1) servers are located), tenant common areas, areas controlled by the Company (such as the mechanical, telecommunications and utility rooms) and, in some facilities, individual office and storage space leased on an as available basis to the tenants. Raised square footage is that portion of gross building area where the (2) tenants locate their computer servers. The Company considers raised square footage to be the net rentable square footage in each of its facilities. Critical load (also referred to as IT load or load used by tenants' (3) servers or related equipment) is the power available for exclusive use by tenants expressed in terms of MW or kW (1MW is equal to 1,000 kW). Current development projects include land, capitalization for construction (4) and development, capitalized interest and capitalized operating carrying costs, as applicable, upon completion. Amount capitalized as of September 30, 2012. Future Phase II development (5) projects include only land, shell, underground work and capitalized interest through Phase I opening. DUPONT FABROS TECHNOLOGY, INC. Debt Summary as of September 30, 2012 ($ in thousands) Amounts %ofTotal Rates Maturities (years) Secured $ 20 % 3.2 % 2.2 140,900 Unsecured 550,000 80 % 8.5 % 4.5 Total $ 100 % 7.4 % 4.0 690,900 Fixed Rate Debt: Unsecured Notes $ 80 % 8.5 % 4.5 550,000 FixedRateDebt 550,000 80 % 8.5 % 4.5 Floating Rate Debt: Unsecured Credit — — — 3.5 Facility ACC5 Term Loan 140,900 20 % 3.2 % 2.2 Floating Rate Debt 140,900 20 % 3.2 % 2.2 Total $ 100 % 7.4 % 4.0 690,900 Note: The Company capitalized interest and deferred financing cost amortization of $1.2 million and$2.8 million during the three and nine months ended September 30, 2012, respectively. Debt Maturity as of September 30, 2012 ($ in thousands) Year FixedRate FloatingRate Total %ofTotal Rates 2012 $ — $ 1,300 $ 0.2 % 3.2 % 1,300 2013 — 5,200 5,200 0.8 % 3.2 % 2014 — 134,400(2) 134,400 19.5 % 3.2 % 2015 125,000 (1) — 125,000 18.1 % 8.5 % 2016 125,000 (1) — 125,000 18.1 % 8.5 % 2017 300,000 (1) — 300,000 43.3 % 8.5 % Total $ 550,000 $ 140,900 $ 100 % 7.4 % 690,900 (1) The Unsecured Notes have mandatory amortization payments due December 15 of each respective year. (2) Remaining principal payment due on December 2, 2014 with no extension option. DUPONT FABROS TECHNOLOGY, INC. Selected Unsecured Debt Metrics 9/30/12 12/31/11 Interest Coverage Ratio (not less than 2.0) 3.9 3.5 Total Debt to Gross Asset Value (not to 24.5% 26.3% exceed 60%) Secured Debt to Total Assets (not to exceed 5.0% 5.3% 40%) Total Unsecured Assets to Unsecured Debt (not 345.0% 329.5% less than 150%) These selected metrics relate to DuPont Fabros Technology, LP's outstanding unsecured debt. DuPont Fabros Technology, Inc. is the general partner of DuPont Fabros Technology, LP. Capital Structure as of September 30, 2012 (in thousands except per share data) Mortgage Notes $ Payable 140,900 Unsecured Notes 550,000 Total Debt 690,900 22.2 % Common Shares 77 % 63,296 Operating Partnership ("OP") 23 % 18,832 Units Total Shares and 100 % 82,128 Units Common Share Price at $ September 30, 2012 25.25 Common Share and OP Unit $ Capitalization 2,073,732 Preferred Stock ($25 per share liquidation preference) 351,250 Total Equity 2,424,982 77.8 % Total Market Capitalization $ 100.0 % 3,115,882 DUPONT FABROS TECHNOLOGY, INC. Common Share and OP Unit Weighted Average Amounts Outstanding YTD YTD Q3 2012 Q3 2011 Q3 2012 Q3 2011 Weighted Average Amounts Outstanding for EPS Purposes: Common Shares – basic 62,994,500 61,973,869 62,820,979 60,912,532 Shares issued from assumed conversion of: - Restricted Shares 113,617 243,681 130,085 268,479 - Stock Options 773,546 765,924 776,067 806,523 - Performance Units — — — — Total Common Shares - diluted 63,881,663 62,983,474 63,727,131 61,987,534 Weighted Average Amounts Outstanding for FFO and AFFO Purposes: Common Shares – basic 62,994,500 61,973,869 62,820,979 60,912,532 OP Units – basic 18,832,188 19,491,238 18,903,532 20,445,682 Total Common Shares and OP 81,826,688 81,465,107 81,724,511 81,358,214 Units Shares and OP Units issued from assumed conversion of: - Restricted Shares 113,617 243,681 130,085 268,479 - Stock Options 773,546 765,924 776,067 806,523 - Performance Units — — — — Total Common Shares and Units - 82,713,851 82,474,712 82,630,663 82,433,216 diluted Period Ending Amounts Outstanding: Common Shares 63,296,253 OP Units 18,832,188 Total Common Shares and Units 82,128,441 DUPONT FABROS TECHNOLOGY, INC. 2012 Guidance as of October 24, 2012 The earnings guidance/projections provided below are based on current expectations and are forward-looking. Expected Q4 2012 Expected 2012 per share per share Net income per common share and unit – $0.11 to $0.15 $0.40 to $0.44 diluted Depreciation and amortization, net 0.27 1.08 FFO per share – diluted (1) $0.38 to $0.42 $1.48 to $1.52 2012 Debt Assumptions Weighted average debt outstanding $692.5 million Weighted average interest rate 7.54% Total interest costs $52.2 million Amortization of deferred financing costs 3.8 million Interest expense capitalized (4.3) million Deferred financing costs amortization (0.3) million capitalized Total interest expense after capitalization $51.4 million 2012 Other Guidance Assumptions Total revenues $330 to $335 million Base rent (included in total revenues) $223 to $225 million Straight-line revenues (included in base rent) $20 to $21 million General and administrative expense $18 million Investments in real estate – development $95 million Improvements to real estate excluding $4 million development Preferred stock dividends $27 million Annualized common stock dividend $0.60 per share Weighted average common shares and OP units - 83 million diluted (1) For information regarding FFO, see "Reconciliations of Net Income toFFO and AFFO" on page 6 of this earnings release. SOURCE DuPont Fabros Technology, Inc. Website: htp://www.dft.com Contact: Investor Relations: Mr. Mark L. Wetzel, EVP, CFO & Treasurer, +1-202-728-0033, email@example.com; or Mr. Christopher A. Warnke, Manager, Investor Relations,+1-202-478-2330, firstname.lastname@example.org
DuPont Fabros Technology, Inc. Reports Third Quarter 2012 Results
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