Digital Realty Trust, Inc. Reports Third Quarter FFO Of $1.13 Per Share, Up 11.9% From Third Quarter 2011

 Digital Realty Trust, Inc. Reports Third Quarter FFO Of $1.13 Per Share, Up
                        11.9% From Third Quarter 2011

U.S. demand drives third quarter lease signings

PR Newswire

SAN FRANCISCO, Oct. 26, 2012

SAN FRANCISCO, Oct. 26, 2012 /PRNewswire/ --Digital Realty Trust, Inc. (NYSE:
DLR), a leading global provider of data center solutions, today announced
financial results for the third quarter of 2012. All per share results are on
a diluted share and unit basis.

Recent Highlights:

  oReported FFO of $1.13 per share for the third quarter of 2012, up 11.9%
    from $1.01 per share for the third quarter of 2011. Excluding certain
    items that do not represent ongoing expenses or revenue streams in each
    quarter, third quarter 2012 core FFO was $1.13 per share, up 10.8% from
    third quarter 2011 core FFO of $1.02 per share;
  oReported net income for the third quarter of 2012 of $56.9 million and net
    income available to common stockholders of $45.6 million, or $0.37 per
    share, up 19.4% from $0.31 per share for the third quarter of 2011;
  oClosed on the acquisition of the Sentrum Portfolio, a three-property
    operating data center portfolio, comprising approximately 733,000 square
    feet in the greater London area for a purchase price of approximately $1.1
    billion;
  oClosed on the acquisition of a 286,000 square foot data center and office
    complex in suburban Denver for a purchase price of approximately $90.8
    million;
  oCompleted a common stock offering of 11,500,000 shares at a price of
    $72.25 per share, which generated approximately $796.8 million of net
    proceeds;
  oCompleted a public offering of $300 million aggregate principal amount of
    3.625% notes due 2022, which generated approximately $293.1 million of net
    proceeds;
  oExercised a portion of the global revolving credit facility's accordion
    feature, increasing commitments to $1.8 billion from $1.5 billion;
  oSigned leases during the third quarter of 2012, including colocation
    space, expected to generate approximately $27.0 million in annualized GAAP
    rental revenue;
  oCommenced leases during the third quarter of 2012, including colocation
    space, totaling approximately $26.9 million of annualized GAAP rental
    revenue; and
  oNarrowed 2012 FFO guidance range to between $4.40 and $4.44 per share.

Funds from operations ("FFO") was $154.7 million in the third quarter of 2012,
or $1.13 per share, up 11.9% from $1.01 per share in the third quarter of
2011, and up 3.7% from $1.09 per share in the previous quarter.

"Third quarter 2012 core FFO was the same as reported FFO at $1.13 per share,
due to offsetting items that do not represent ongoing expenses or revenue
streams in the quarter," said A. William Stein, Chief Financial Officer and
Chief Investment Officer of Digital Realty. "These items included lease
termination fees offset by transaction and other expenses."

FFO is a supplemental non-GAAP performance measure used by the real estate
industry to measure the operating performance of real estate investment
trusts. FFO and core FFO should not be considered as substitutes for net
income determined in accordance with U.S. GAAP as measures of financial
performance. A reconciliation from U.S. GAAP net income available to common
stockholders to FFO, a definition of FFO, a reconciliation from FFO to core
FFO, and a definition of core FFO are included as an attachment to this press
release.

Net income for the third quarter of 2012 was $56.9 million, compared to $37.7
million for the third quarter of 2011 and $54.0 million for the second quarter
of 2012. Net income available to common stockholders in the third quarter of
2012 was $45.6 million, or $0.37 per share, compared to $31.9 million, or
$0.31 per share, in the third quarter of 2011 and $42.0 million, or $0.38 per
share, in the second quarter of 2012.

The Company reported total operating revenues of $342.5 million in the third
quarter of 2012, up 25.2% from $273.5 million in the third quarter of 2011 and
up 12.8% from $303.7 million in the second quarter of 2012.

"We are very pleased with our third quarter performance and believe that it
once again demonstrates the resilience of our business model, particularly
during challenging economic conditions," said Michael F. Foust, Chief
Executive Officer of Digital Realty. "Our global footprint and customer
relationships, strong balance sheet and access to attractively priced capital
combined with our acquisition and development expertise, have continued to
generate earnings growth for our shareholders."

Acquisitions and Leasing Activity

The Company closed on the acquisition of a three-property portfolio totaling
approximately 733,000 square feet located in the greater London area, referred
to as the Sentrum Portfolio, on July 11, 2012. The purchase price was £715.9
million, not including a debt extinguishment cost of £18.7 million (equivalent
to $1.1 billion, not including a debt extinguishment cost of $29.0 million,
based on the July 11, 2012 exchange rate of £1.00 to $1.55) (subject to
adjustment in limited circumstances and to earn-out payments). The acquisition
was funded with proceeds from a follow-on common stock offering which closed
on July 2, 2012 and borrowings under the global revolving credit facility.

The Company also acquired 11900 East Cornell Road, a 286,000 square foot data
center and office complex located in Aurora, Colorado. The property consists
of three interconnected buildings and includes approximately 170,000 square
feet of data center space. The purchase price was approximately $90.8
million.

The Company signed leases during the quarter ended September 30, 2012 totaling
over $27.0 million of annualized GAAP rental revenue, including $1.3 million
of colocation revenue. Leases signed totaled approximately 244,000 square
feet, including approximately 134,000 square feet of Turn-Key Flex^SM data
center space leased at an average annual GAAP rental rate of $147.00 per
square foot, approximately 87,000 square feet of Custom Solutions (formerly
referred to as Build-to-Suit) space leased at an average annual GAAP rental
rate of $65.00 per square foot, and 23,000 square feet of non-technical space
leased at an average annual GAAP rental rate of $20.00 per square foot.

"In Houston, we experienced record activity with new lease signings totaling
over 30,000 square feet of Turn-Key Flex space and nearly 87,000 square feet
of Custom Solutions space. Although the Custom Solutions lease rates are
lower than the Turn-Key Flex rates due to the mix of type of space and the
build-to-suit nature of the facilities, we are achieving solid returns due to
our low cost basis in the project," added Mr. Foust. "On a volume basis, we
leased over 16.4 megawatts of IT capacity during the quarter, up over 31% from
the same four quarters' average of 12.5 megawatts, which we believe reflects
continued demand for our data center solutions. Other markets where we
experienced good activity during the quarter included Chicago, Northern
Virginia, Silicon Valley, Phoenix and London."

Of the total leases signed during the third quarter of 2012, over 233,000
square feet was for space located in the Company's U.S. portfolio. This
includes approximately 124,000 square feet of Turn-Key Flex space leased at an
average annual GAAP rental rate of $142.00 per square foot, approximately
87,000 square feet of Custom Solutions space leased at an average annual GAAP
rental rate of $65.00 per square foot and approximately 22,000 square feet of
non-technical space leased at an average annual GAAP rental rate of $20.00 per
square foot.

Leases signed during the third quarter of 2012 for space in the Company's
European portfolio totaled over 9,800 square feet of Turn-Key Flex space
leased at an average annual GAAP rental rate of $198.00 per square foot and
approximately 700 square feet of non-technical space leased at an average
annual GAAP rental rate of $31.00 per square foot.

For the quarter ended September 30, 2012, the Company commenced leases
totaling approximately $26.9 million of annualized GAAP rental revenue,
including approximately $0.8 million of colocation revenue. Commenced leases
totaled approximately 245,000 square feet, including 105,000 square feet of
Turn-Key Flex space leased at an average annual GAAP rental rate of
approximately $140.00 per square foot, approximately 85,000 square feet of
Custom Solutions space leased at an average annual GAAP rental rate of $119.00
per square foot, 47,000 square feet of Powered Base Building space leased at
an average annual GAAP rental rate of approximately $23.00 per square foot,
and 8,000 square feet of non-technical space leased at an average annual GAAP
rental rate of approximately $21.00 per square foot.

Of the total leases commenced during the third quarter of 2012, approximately
232,000 square feet was for space located in the Company's U.S. portfolio.
This includes approximately 93,000 square feet of Turn-Key Flex space leased
at an average annual GAAP rental rate of $130.00 per square foot, nearly
47,000 square feet of Powered Base Building space at an average annual GAAP
rental rate of $23.00 per square foot, approximately 85,000 square feet of
Custom Solutions space leased at an average annual GAAP rental rate of
$119.00 per square foot, and approximately 7,000 square feet of non-technical
space leased at an average annual GAAP rental rate of $16.00 per square
foot.

Leases commenced during the third quarter of 2012 for space in the Company's
European portfolio totaled approximately 12,500 square feet of Turn-Key Flex
space leased at an average annual GAAP rental rate of $213.00 per square foot
and nearly 1,000 square feet of non-technical space leased at an average
annual GAAP rental rate of $53.00 per square foot.

As of October 26, 2012, the Company's portfolio comprised 110 properties,
excluding three properties held in unconsolidated joint ventures, consisting
of 105 data center facilities and 5 non-technical buildings totaling
approximately 21.2 million net rentable square feet, including 2.2 million
square feet of space held for redevelopment. The portfolio is strategically
located in 32 key data center markets throughout North America, Europe, Asia
and Australia.

Balance Sheet Update

Total assets grew to approximately $8.5 billion at September 30, 2012 from
$6.7 billion at June 30, 2012. Total debt increased to $4.1 billion at
September 30, 2012 from $3.4 billion at June 30, 2012. Other liabilities
increased to $905.0 million at September 30, 2012 from $578.7 million at June
30, 2012. Stockholders' equity was approximately $3.5 billion at September
30, 2012, up from approximately $2.7 billion at June 30, 2012.

On July 2, 2012, the Company completed an underwritten public offering of
11,500,000 shares of its common stock, including 1,500,000 shares issued upon
exercise of the underwriters' option to purchase additional shares, which was
exercised in full, at a price of $72.25 per share, for net proceeds of
approximately $796.8 million after deducting underwriting discounts and
commissions and offering expenses. Proceeds from the offering were used to
fund a portion of the purchase price of the Sentrum Portfolio and repay
amounts outstanding under the global revolving credit facility.

On August 10, 2012, the Company increased the aggregate commitments under its
global revolving credit facility to $1.8 billion from $1.5 billion pursuant to
the accordion feature under the facility.

On September 24, 2012, the Company completed an underwritten public offering
of $300.0 million in aggregate principal amount of 10-year senior unsecured
notes with an interest rate of 3.625% per annum and a yield to maturity of
3.784%. Proceeds from the offering were used to repay amounts outstanding
under the global revolving credit facility.

2012 Revised Outlook

"With a better view towards year-end results, we are narrowing our FFO per
share guidance range and updating the underlying assumptions," said Mr. Stein.
"As we did last year, we plan to provide 2013 guidance in January 2013."

FFO per share for the year ending December 31, 2012 is projected to be between
$4.40 and $4.44. This guidance represents expected FFO growth of 8.4% to 9.4%
over 2011 FFO of $4.06 per share. The Company expects projected FFO and core
FFO to be the same for the year. A reconciliation of the range of 2012
projected net income to projected FFO and core FFO follows:

                                                                Low - High
Net income available to common stockholders per diluted         $1.51 – 1.55
share
 Add:
Real estate depreciation and amortization as adjusted for       $3.14
noncontrolling interests
 Less:
Gain on sale                                                    $(0.02)
Dilutive impact of convertible preferred stock and exchangeable $(0.23)
debentures
 Projected FFO per diluted share                  $4.40 – $4.44
As adjusted for items that do not represent core expenses and
revenue streams:
 Reported Q1 items                                 $0.01
 Reported Q2 items                                 ($0.02)
 Reported Q3 items                                  $0.00
 Projected Q4 transaction expenses               $0.01
Projected core FFO per diluted share                         $4.40 - $4.44

The 2012 guidance provided by Digital Realty in this press release is based on
the following updated assumptions as of October 26, 2012:

  oAcquisitions of income producing properties totaling $1.42 – 1.45 billion
    at an average cap rate of 7.5%;
  oCommencement of leases contributing $130 – $150 million of GAAP rental
    revenue on an annualized basis;
  oDigital Design Services revenue recognized between $8 – $9 million;
  oDevelopment and redevelopment capital expenditures of $700 – $800 million;
  oRecurring capital expenditures of $40 – $50 million;
  oTotal G&A expenses of $60 – $62 million;
  oTransaction expenses of $6 – $8 million; and
  oQ4 FX rates (USD per currency): Euro = 1.27; Pound = 1.57; SGD = 0.79; AUD
    = 1.02.

Investor Conference Call Details

Digital Realty will host a conference call on Friday, October 26, 2012 at
10:00 am PT / 1:00 pm ET to discuss its third quarter 2012 financial results
and operating performance. The conference call will feature Chief Executive
Officer, Michael F. Foust, and Chief Financial Officer and Chief Investment
Officer, A. William Stein.

To participate in the live call, investors are invited to dial +1 (888)
701-6680 (for domestic callers) or +1 (706) 634-5758 (for international
callers) and quote the conference ID #30529294 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 www.digitalrealty.com. Please go to
the website at least 15 minutes early to register and download and install any
necessary audio software. If you are unable to listen to the live conference
call, a telephone and webcast replay will be available until 11:59 pm ET on
Thursday, November 15, 2012. The telephone replay can be accessed two hours
after the call by dialing +1 (855) 859-2056 (for domestic callers) or +1 (404)
537-3406 (for international callers) and using the conference ID # 30529294.
The webcast replay can be accessed on Digital Realty's website immediately
after the live call has concluded.

About Digital Realty

Digital Realty Trust, Inc. focuses on delivering customer driven data center
solutions by providing secure, reliable and cost effective facilities that
meet each customer's unique data center needs. Digital Realty's customers
include domestic and international companies across multiple industry
verticals ranging from information technology and Internet enterprises, to
manufacturing and financial services. Digital Realty's 110 properties,
excluding three properties held as investments in unconsolidated joint
ventures, comprise approximately 21.2 million square feet as of October 26,
2012, including 2.2 million square feet of space held for redevelopment.
Digital Realty's portfolio is located in 32 markets throughout Europe, North
America, Asia and Australia. Additional information about Digital Realty is
included in the Company Overview, which is available on the Investors page of
Digital Realty's website at http://www.digitalrealty.com.

Safe Harbor Statement

This press release contains forward-looking statements which are based on
current expectations, forecasts and assumptions that involve risks and
uncertainties that could cause actual outcomes and results to differ
materially, including statements related to the Company's 2012 guidance and
its underlying assumptions, rent from leases that have been signed but have
not yet commenced and other contracted rent to be received in future periods,
development and redevelopment plans, expected IT capacity of development and
redevelopment projects, and expectations regarding the Company's future
growth, financial resources and success. These risks and uncertainties
include, among others, the following: the impact of the recent deterioration
in global economic, credit and market conditions, including the downgrade 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 or businesses; 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. For a further list and description of such risks
and uncertainties, see the reports and other filings by the Company with the
U.S. Securities and Exchange Commission, including the Company's Annual Report
on Form 10-K for the year ended December 31, 2011 and Quarterly Reports on
Form 10-Q for the quarters ended March 31, 2012 and June 30, 2012. The
Company disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.



Digital Realty Trust, Inc. and Subsidiaries
Condensed Consolidated Income Statements
(in thousands, except share and per share data)
(unaudited)
                         Three Months Ended        Nine Months Ended
                         September    September    September     September 30,
                         30, 2012     30, 2011     30, 2012      2011
Operating Revenues:
                         $       $       $        $      
 Rental                    260,052              717,809     606,447
                                      206,846
 Tenant reimbursements   78,878       56,656       197,162       159,801
 Construction            2,497        9,372        6,903         24,948
 management
 Other                   1,052        602          7,457         902
    Total operating      342,479      273,476      929,331       792,098
    revenues
Operating Expenses:
 Rental property
 operating and           106,660      82,164       274,081       226,224
 maintenance
 Property taxes          17,982       13,055       49,793        40,488
 Insurance               2,463        1,961        6,953         6,010
 Construction            623          7,391        1,412         20,327
 management
 Depreciation and        101,840      79,047       274,835       229,813
 amortization
 General and             14,409       14,600       43,768        41,082
 administrative
 Transactions            504          3,632        5,789         5,053
 Other                   923          -            1,260         90
    Total operating      245,404      201,850      657,891       569,087
    expenses
    Operating income     97,075       71,626       271,440       223,011
Other Income
(Expenses):
 Equity in earnings of
 unconsolidated joint    1,520        1,390        6,402         3,656
 ventures
 Interest and other      83           2,218        2,008         2,862
 income
 Interest expense        (41,047)     (37,078)     (116,758)     (112,494)
 Tax expense             (710)        (461)        (2,637)       (1,122)
 Loss from early         -            (6)          (303)         (984)
 extinguishment of debt
Net Income               56,921       37,689       160,152       114,929
 Net income
 attributable to         (1,529)      (1,345)      (4,384)       (4,380)
 noncontrolling
 interests
Net Income Attributable
to Digital Realty        55,392       36,344       155,768       110,549
Trust, Inc.
 Preferred stock         (9,777)      (4,436)      (28,921)      (15,671)
 dividends
Net Income Available to  $       $       $        $      
Common Stockholders        45,615            126,847      
                                      31,908                     94,878
 Net income per share
 available to common
 stockholders:
                         $       $       $        $      
  Basic                                     1.12       
                         0.37         0.32                     0.99
                         $       $       $        $      
  Diluted                                   1.12       
                         0.37         0.31                     0.97
 Weighted average
 shares outstanding:
 Basic                   122,026,421  100,588,235  112,995,512   96,137,611
 Diluted                 122,353,511  101,912,342  113,275,221   97,316,650







Digital Realty Trust, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
                                           September 30, 2012  December 31,
                                                               2011
ASSETS                                     (unaudited)
Investments in real estate
Properties:
                                           $           $       
Land                                                         
                                           621,279             555,113
Acquired ground leases                     13,492              6,214
Buildings and improvements                 7,363,430           5,253,754
Tenant improvements                        383,627             303,502
Total investments in properties            8,381,828           6,118,583
Accumulated depreciation and amortization  (1,116,600)         (900,044)
Net investments in properties              7,265,228           5,218,539
Investment in unconsolidated joint         48,882              23,976
ventures
Net investments in real estate             7,314,110           5,242,515
Cash and cash equivalents                  76,115              40,631
Accounts and other receivables, net       146,025             90,580
Deferred rent                              301,535             246,815
Acquired above market leases, net         68,269              29,701
Acquired in place lease value and          492,393             335,381
deferred leasing costs, net
Deferred financing costs, net             32,163              29,849
Restricted cash                            43,217              55,165
Other assets                               38,771              27,929
                                           $           $       
Total Assets                                                 
                                           8,512,598          6,098,566
LIABILITIES AND EQUITY
                                           $           $       
Global revolving credit facility                             
                                           526,372             275,106
Unsecured term loan                        754,935             -
Unsecured senior notes, net of discount    1,737,881           1,441,072
Exchangeable senior debentures             266,400             266,400
Mortgage loans, net of premiums            794,485             947,132
Other secured loan                         -                   10,500
Accounts payable and other accrued         616,042             315,133
liabilities
Accrued dividends and distributions        -                   75,455
Acquired below market leases, net          152,876             85,819
Security deposits and prepaid rents        136,051             101,538
Total Liabilities                          4,985,042           3,518,155
Equity:
Stockholders' equity                       3,479,443           2,522,917
Noncontrolling interests                   48,113              57,494
Total Equity                               3,527,556           2,580,411
                                           $           $       
Total Liabilities and Equity                                 
                                           8,512,598          6,098,566







Digital Realty Trust, Inc. and Subsidiaries
Reconciliation of Net Income Available to Common Stockholders to Funds From
Operations (FFO)
(in thousands, except per share and unit data)
(unaudited)
                  Three Months Ended            Nine Months Ended     Year
                                                                      Ended
                  September June 30, September  September  September  December
                  30, 2012  2012     30, 2011   30, 2012   30, 2011   31, 2011
Net income        $     $     $      $      $      $   
available to                                       
common             45,615 42,021    31,908  126,847    94,878   
stockholders                                                          130,868
Adjustments:
Noncontrolling
interests in      1,574     1,661    1,421      4,821      4,655      6,185
operating
partnership
Real estate
related           100,994   88,186   78,550     272,173    228,461    308,547
depreciation and
amortization (1)
Real estate
related
depreciation and
amortization      710       866      918        2,481      2,703      3,688
related to
investment in
unconsolidated
joint ventures
Gain on sale of
assets held in    -         (2,325)  -          (2,325)    -          -
unconsolidated
joint venture
FFO available to  $     $     $      $      $      $   
common                                              
stockholders and  148,893   130,409  112,797   403,997   330,697    
unitholders (2)                                                       449,288
                  $     $     $      $      $      $   
Basic FFO per                                    
share and unit           1.14                                
                  1.18              1.07      3.44      3.28       4.36
Diluted FFO per   $     $     $      $      $      $   
share and unit                                   
(2)                      1.09                                
                  1.13              1.01      3.28      3.04       4.06
Weighted average
common stock and
units outstanding
Basic             126,243   114,100  105,069    117,291    100,846    103,053
Diluted (2)       137,304   125,824  120,235    129,439    117,899    119,404
(1) Real estate
related
depreciation and
amortization was
computed as
follows:
Depreciation and
amortization per  101,840   89,000   79,047     274,835    229,813    310,425
income statement
Non-real estate   (846)     (814)    (497)      (2,662)    (1,352)    (1,878)
depreciation
                  $     $     $      $      $      $   
                                                   
                  100,994  88,186    78,550  272,173   228,461    
                                                                      308,547

(2) At September 30, 2012, we had 5,098 series D convertible preferred shares
outstanding that were convertible into 4,219 common shares on a weighted
average basis for the three months ended September 30, 2012. For the three
months ended September 30, 2012, we have excluded the effect of dilutive
series E and series F 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 and series F preferred stock,
which we consider highly improbable; if included, the dilutive effect for the
three months ended September 30, 2012 would be 6,784 shares. In addition, we
had a balance of $266,400 of 5.50% exchangeable senior debentures due 2029
that were exchangeable for 6,515 common shares on a weighted average basis for
the three months ended September 30, 2012. See below for calculations of
diluted FFO available to common stockholders and unitholders and weighted
average common stock and units outstanding.

                  Three Months Ended            Nine Months Ended     Year
                                                                      Ended
                  September June 30, September  September  September  December
                  30, 2012  2012     30, 2011   30, 2012   30, 2011   31, 2011
FFO available to  $     $     $      $      $      $   
common                                              
stockholders and  148,893  130,409  112,797   403,997   330,697    
unitholders                                                           449,288
Add: Series C
convertible       -         -        1,402      1,402      4,675      6,077
preferred
dividends
Add: Series D
convertible       1,723     2,394    3,034      6,515      10,996     13,394
preferred
dividends
Add: 5.50%
exchangeable      4,050     4,050    4,050      12,150     12,150     16,200
senior debentures
interest expense
FFO available to                                                      $   
common            $     $     $      $      $         
stockholders and                                  
unitholders --    154,666  136,853  121,283   424,064   358,518   484,959
diluted
Weighted average
common stock and  126,243   114,100  105,069    117,291    100,846    103,053
units outstanding
Add: Effect of
dilutive
securities
(excluding series
C and D
convertible       327       405      410        280        871        764
preferred stock
and 5.50%
exchangeable
senior
debentures)
Add: Effect of
dilutive series C -         489      2,784      1,087      3,097      3,017
convertible
preferred stock
Add: Effect of
dilutive series D 4,219     4,374    5,604      4,310      6,775      6,242
convertible
preferred stock
Add: Effect of
dilutive 5.50%    6,515     6,456    6,368      6,471      6,310      6,328
exchangeable
senior debentures
Weighted average
common stock and  137,304   125,824  120,235    129,439    117,899    119,404
units outstanding
-- diluted

Digital Realty Trust, Inc. and Subsidiaries
Reconciliation of Funds From Operations (FFO) to Core Funds From
Operations (CFFO)
(in thousands, except per share and unit data)
(unaudited)
                  Three Months Ended            Nine Months Ended     Year
                                                                      Ended
                  September June 30, September  September  September  December
                  30, 2012  2012     30, 2011   30, 2012   30, 2011   31, 2011
FFO available to                                                      $   
common            $     $     $      $      $         
stockholders and                                  
unitholders --    154,666  136,853  121,283   424,064   358,518   484,959
diluted
Termination fees
and other         (1,052)   (7,824)  (2,542)    (8,876)    (2,842)    (2,953)
non-core revenues
^(3)
Significant
transaction       504       4,608    3,632      5,789      5,053      5,654
expenses
Loss from early
extinguishment of -         303      6          303        984        1,088
debt
Other non-core
expense           923       337      -          1,260      174        174
adjustments ^(4)
CFFO available to                                                     $   
common            $     $     $      $      $         
stockholders and                                  
unitholders --    155,041  134,277  122,379   422,540   361,887   488,922
diluted
                  $     $     $      $      $      $   
Diluted CFFO per                                 
share and unit           1.07                                
                  1.13              1.02      3.26      3.07       4.09

(3) Includes one-time fees, proceeds and certain other adjustments that are
not core to our business.
(4) Includes reversal of accruals and certain other adjustments that are not
core to our business.

Note Regarding Funds From Operations

Digital Realty calculates Funds from Operations, or FFO, in accordance with
the standards established by the National Association of Real Estate
Investment Trusts, or NAREIT. FFO represents net income (loss) available to
common stockholders and unitholders (computed in accordance with U.S. GAAP),
excluding gains (or losses) from sales of property, impairment charges, real
estate related depreciation and amortization (excluding amortization of
deferred financing costs) and after adjustments for unconsolidated
partnerships and joint ventures. Management 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 year over year, captures trends in
occupancy rates, rental rates and operating costs. Digital Realty also
believes that, as a widely recognized measure of the performance of REITs, FFO
will be used by investors as a basis to compare our operating performance with
that of other REITs. However, because FFO excludes depreciation and
amortization and captures neither the changes in the value of our properties
that result from use or market conditions, nor the level of capital
expenditures and leasing commissions necessary to maintain the operating
performance of our properties, all of which have real economic effect and
could materially impact our financial condition and results from operations,
the utility of FFO as a measure of our performance is limited. Other REITs
may not calculate FFO in accordance with the NAREIT definition and,
accordingly, our FFO may not be comparable to such other REITs' FFO.
Accordingly, FFO should be considered only as a supplement to net income as a
measure of our performance.

Core Funds from Operations

We present core funds from operations, or CFFO, as a supplemental operating
measure because, in excluding certain items that do not reflect ongoing
revenue or expense streams, it provides a performance measure that, when
compared year over year, captures trends in our core business operating
performance. We calculate CFFO by adding to or subtracting from FFO
(i)termination fees and other non-core revenues, (ii)significant transaction
expenses, (iii)loss from early extinguishment of debt, (iv)costs on
redemption of preferred stock, (v)significant property tax adjustments, net
and (vi)other non-core expense adjustments. Because certain of these
adjustments have a real economic impact on our financial condition and results
from operations, the utility of CFFO as a measure of our performance is
limited. Other REITs may not calculate CFFO in a consistent manner.
Accordingly, our CFFO may not be comparable to other REITs' CFFO. CFFO should
be considered only as a supplement to net income computed in accordance with
GAAP as a measure of our performance.

For Additional Information:
A. William                          Pamela M.
Stein          Garibaldi
Chief Financial Officer and Vice President, Investor Relations and
Chief Investment                    Corporate Marketing
Officer
Digital Realty Trust,               Digital Realty Trust, Inc.
Inc.
+1 (415)                            +1 (415) 738-6500
738-6500

SOURCE Digital Realty Trust, Inc.

Website: http://www.digitalrealtytrust.com