DuPont Fabros Technology, Inc. Reports Fourth Quarter 2012 Results Revenues up 16% ACC6 Phase II opens at 100% Leased PR Newswire WASHINGTON, Feb. 6, 2013 WASHINGTON, Feb. 6, 2013 /PRNewswire/ --DuPont Fabros Technology, Inc. (NYSE: DFT) today reported results for the quarter ended December 31, 2012.All per share results are reported on a fully diluted basis. (Logo: http://photos.prnewswire.com/prnh/20120104/MM29780LOGO ) Highlights oAt year-end, the company's overall operating portfolio was 90% leased with the stabilized portfolio at 90% leased, the two properties remaining in the non-stabilized portfolio at 88% leased and the one completed development, ACC6 Phase II, 100% leased. oQuarterly Highlights: oReported fourth quarter Funds from Operations ("FFO") of $0.38 per share representing a 2.7% increase over the prior year quarter. oIncreased the quarterly dividend by 33% from $0.15 per share to $0.20 per share. oSigned five leases totaling 13.62 megawatts ("MW") and 73,582 raised square feet. oCommenced two leases totaling 1.00 MW and 5,500 raised square feet. oAs reported in the third quarter earnings release, extended the maturity of one lease totaling 13.90 MW and 80,000 raised square feet by 8.2 years. This lease is now scheduled to expire from 2024 to 2026. Hossein Fateh, President and Chief Executive Officer, said, "The volume of new leasing in 2012 was the best in our history. In 2012, we signed 14 new leases totaling 41.5 MW of critical load and four lease extensions totaling 23.8 MW of critical load. Three of the four lease extensions were with tenants who also signed 16.1 MW of new leases in 2012. Also, on January 1, 2013 we placed ACC6 Phase II into service 100% leased." Fourth Quarter 2012 Results For the quarter ended December 31, 2012, the company reported earnings of $0.11 per share compared to $0.12 per share for the fourth quarter of 2011.Revenues increased 16%, or $11.6 million, to $86.0 million for the fourth quarter of 2012 over the fourth quarter of 2011.The increase in revenues is primarily due to new leases commencing. FFO for the quarter ended December 31, 2012 was $0.38 per share compared to $0.37 per share for the fourth quarter of 2011. The increase of $0.01 per share from the prior year's quarter is primarily due to: oA positive impact of $0.09 per share from higher operating income excluding depreciation and the reserve and charge discussed below ($0.13 per share from new leases commencing offset by $0.04 per share of unreimbursed property operating expenses, real estate taxes and insurance related to the properties that are not fully leased). oA negative impact of $0.04 per share included in other expenses from a receivables reserve set up for one tenant that restructured its lease obligations with us. The tenant leases approximately 7.45 MW in four different locations and the company has agreed to relinquish a total of approximately 16%, or 1.2 MW in aggregate, at two locations, Ashburn and Reston, Virginia. Also, under this restructuring, this tenant's outstanding accounts receivable and deferred rent receivable related to the returned space has been converted into a note receivable, the terms of which require the payment of principal and interest over the next four years. Additionally, under this restructuring this tenant has the right to defer up to two-thirds of base rent due over the next 18 months at NJ1 in Piscataway, New Jersey. If deferred, the base rent would be added to the note. oA negative impact of $0.03 per share from higher financing charges ($0.02 per share of lower capitalized interest expense and $0.01 per share of additional preferred dividends). oA negative impact of $0.01 per share included in other expenses for pursuit costs for deals that are no longer probable. Year Ended December 31, 2012 Results For the year ended December 31, 2012, the company reported earnings of $0.41 per share compared to $0.71 per share for the year ago period. The decrease of $0.30 in earnings per share is primarily due to lower capitalized interest, higher preferred dividends and the reserve and charge noted above. Revenues increased 16%, or $45.0 million, to $332.4 million for the year ended December 31, 2012 over the prior year. The increase in revenues is primarily due to new leases commencing. FFO for the year ended December 31, 2012 was $1.48 per share compared to $1.61 per share for the prior year. The decrease of $0.13 per share is primarily due to: oA positive impact of $0.26 per share from higher operating income excluding depreciation and the reserve and charge discussed above ($0.42 per share from new leases commencing offset by $0.16 per share of unreimbursed property operating expenses, real estate taxes and insurance related to the properties that are not fully leased). oA negative impact of $0.34 per share from higher financing charges ($0.26 per share of lower capitalized interest expense and $0.08 per share of additional preferred dividends). oA negative impact of $0.05 per share from the receivables reserve and deal pursuit costs noted above. Portfolio Update During the fourth quarter 2012, the company: oSigned five leases with a weighted average lease term of 6.9 years totaling 13.62 MW and 73,582 raised square feet. oTwo leases were at CH1 totaling 3.03 MW and 21,332 raised square feet. One lease commenced in the fourth quarter of 2012, a portion of the other lease commenced in the first quarter of 2013 and the remaining portion of this lease totaling 1.30 MW is expected to commence in equal parts in the third and fourth quarters of 2013. oOne lease was at ACC6 Phase II totaling 4.33 MW and 22,000 raised square feet. This lease is expected to commence in total prior to the end of the first quarter of 2013. oOne lease was at SC1 totaling 5.69 MW and 27,500 raised square feet. A portion of this lease commenced in the first quarter of 2013 and the remaining portion totaling 1.14 MW is expected to commence in the fourth quarter of 2013. oOne lease was at NJ1 totaling 0.57 MW and 2,750 raised square feet. This lease commenced in the fourth quarter of 2012. oSigned one lease extension for 8.2 years at ACC3 totaling 13.90 MW and 80,000 raised square feet. In 2012, the company: oSigned 14 leases with a weighted average lease term of 9.9 years totaling 41.48 MW and 213,295 raised square feet that are expected to generate approximately $43.8 million of annualized GAAP base rent revenue. This compares to 14 leases, 24.92 MW and 133,716 raised square feet for the prior year. oCommenced 15 leases totaling 31.89 MW and 168,355 raised square feet totaling approximately $39.6 million of annualized GAAP base rent revenue. This compares to 11 leases, 13.46 MW and 65,093 raised square feet for the prior year. oSigned four lease extensions with three tenants 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. Subsequent to year-end, the company commenced portions of six leases totaling 13.65 MW and 71,069 raised square feet. Balance Sheet and Liquidity The company announced in November a twelve-month common stock repurchase program of up to $80 million. To date, the company has not elected to utilize this program. At year-end, the company had $23.6 million of cash available on its balance sheet and $207 million of available capacity under its revolving credit facility. First Quarter and Full Year 2013 Guidance The company has established an FFO guidance range of $0.38 to $0.40 per share for the first quarter of 2013. The $0.01 per share difference between the company's fourth quarter 2012 FFO of $0.38 per share and the midpoint of the first quarter guidance range is primarily due to new leases commencing. The company has established an FFO guidance range of $1.76 to $1.90 per share for the full year 2013. The assumptions underlying this guidance can be found on page 15 of this press release. The $0.35 per share, or 24%, increase between the company's full year 2012 FFO of $1.48 and the expected mid-point of the company's guidance range for full year 2013 is primarily due to: oA net positive impact of $0.39 per share from higher operating income excluding depreciation. This includes oA positive impact of $0.35 per share primarily from new leases commencing in 2012 and 2013, oA positive impact of $0.04 per share related to lower unreimbursed property operating expenses, real estate taxes and insurance, and oA negative impact of $0.04 per share from lower capitalized interest expense. Fourth Quarter 2012 Conference Call and Webcast Information The company will host a conference call to discuss these results today, Wednesday, February 6, 2013 at 1:00 p.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 10023754. The webcast will be archived on the company's website for one year at www.dft.com on the Presentations & Webcasts page. About DuPont Fabros Technology, Inc. DuPont Fabros Technology, Inc. (NYSE: DFT) is a leading owner, developer, operator and manager of enterprise-class, carrier neutral, multi-tenant wholesale data centers. The Company's facilities are designed to offer highly specialized, efficient 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 2.5 million gross square feet and 218 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 first quarter 2013 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, risks related to the collection of accounts and notes receivable, 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 2013 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 and September 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 (in thousands except share and per share data) Three months ended December Year ended December 31, 31, 2012 2011 2012 2011 (unaudited) (unaudited) Revenues: Base rent $ $ $ $ 57,461 49,783 223,045 193,908 Recoveries from tenants 27,241 24,194 104,814 91,246 Other revenues 1,257 425 4,586 2,287 Total revenues 85,959 74,402 332,445 287,441 Expenses: Property operating 24,286 21,979 94,646 80,351 costs Real estate taxes and 3,474 1,928 12,689 6,392 insurance Depreciation and 22,356 20,470 89,241 75,070 amortization General and 3,310 3,439 17,024 15,955 administrative Other expenses 4,773 179 6,919 1,137 Total expenses 58,199 47,995 220,519 178,905 Operating income 27,760 26,407 111,926 108,536 Interest income 56 12 168 486 Interest: Expense incurred (11,294 ) (9,990 ) (47,765 ) (27,096 ) Amortization of deferred financing (819 ) (810 ) (3,496 ) (2,446 ) costs Net income 15,703 15,619 60,833 79,480 Net income attributable to redeemable noncontrolling (2,046 ) (2,302 ) (7,803 ) (14,505 ) interests – operating partnership Net income attributable to controlling 13,657 13,317 53,030 64,975 interests Preferred stock (6,812 ) (5,573 ) (27,053 ) (20,874 ) dividends Net income attributable $ $ $ $ to common shares 6,845 7,744 25,977 44,101 Earnings per share – basic: Net income attributable $ $ $ $ to common shares 0.11 0.12 0.41 0.71 Weighted average common 63,000,839 62,217,754 62,866,189 61,241,520 shares outstanding Earnings per share – diluted: Net income attributable $ $ $ $ to common shares 0.11 0.12 0.41 0.71 Weighted average common 63,833,651 63,242,288 63,754,006 62,303,905 shares outstanding Dividends declared per $ $ $ $ common share 0.20 0.12 0.62 0.48 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 Year ended December 31, December 31, 2012 2011 2012 2011 Net income $ $ $ $ 15,703 15,619 60,833 79,480 Depreciation and 22,356 20,470 89,241 75,070 amortization Less: Non real estate depreciation and (238 ) (262 ) (1,023 ) (862 ) amortization FFO 37,821 35,827 149,051 153,688 Preferred stock dividends (6,812 ) (5,573 ) (27,053 ) (20,874 ) FFO attributable to $ $ $ $ common shares and OP 31,009 30,254 121,998 132,814 units Straight-line revenues, (1,143 ) (4,577 ) (17,967 ) (34,095 ) net of reserve Amortization of lease contracts above and (599 ) (974 ) (3,194 ) (2,874 ) below market value Compensation paid with 1,647 1,517 6,980 5,950 Company common shares Non real estate depreciation and 238 262 1,023 862 amortization Amortization of deferred 819 810 3,496 2,446 financing costs Improvements to real (1,093 ) (674 ) (4,426 ) (3,821 ) estate Capitalized leasing (362 ) (82 ) (1,143 ) (1,713 ) commissions AFFO $ $ $ $ 30,516 26,536 106,767 99,569 FFO attributable to common shares and OP $ $ $ $ units 0.38 0.37 1.48 1.61 per share - diluted AFFO per share - diluted $ $ $ $ 0.37 0.32 1.29 1.21 Weighted average common shares and OP units 82,662,537 82,497,118 82,638,775 82,449,427 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, compensation paid with Company common shares, gain or loss on derivative instruments, acquisition of service agreements, below market lease amortization net of above market lease amortization early extinguishment of debt costs, non real estate depreciation and amortization, amortization of deferred financing costs, improvements to real estate and capitalized leasing commissions. 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) December 31, December 31, 2012 2011 ASSETS Income producing property: Land $ $ 73,197 63,393 Buildings and improvements 2,315,499 2,123,377 2,388,696 2,186,770 Less: accumulated depreciation (325,740 ) (242,245 ) Net income producing property 2,062,956 1,944,525 Construction in progress and land held for 218,934 320,611 development Net real estate 2,281,890 2,265,136 Cash and cash equivalents 23,578 14,402 Restricted cash — 174 Rents and other receivables, net 3,840 1,388 Deferred rent, net 144,829 126,862 Lease contracts above market value, net 10,255 11,352 Deferred costs, net 35,670 40,349 Prepaid expenses and other assets 30,797 31,708 Total assets $ 2,530,859 $ 2,491,371 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Line of credit $ $ 18,000 20,000 Mortgage notes payable 139,600 144,800 Unsecured notes payable 550,000 550,000 Accounts payable and accrued liabilities 22,280 22,955 Construction costs payable 6,334 20,300 Accrued interest payable 2,601 2,528 Dividend and distribution payable 22,177 14,543 Lease contracts below market value, net 14,022 18,313 Prepaid rents and other liabilities 35,524 29,058 Total liabilities 810,538 822,497 Redeemable noncontrolling 453,889 461,739 interests—operating 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 December 31, 2012 and 2011 Series B cumulative redeemable perpetual preferred stock, 6,650,000 issued and outstanding at December 31, 2012 and 4,050,000 shares 166,250 101,250 issued and outstanding at December31, 2011 Common stock, $.001 par value, 250,000,000 shares authorized, 63,340,929 shares issued and outstanding at December 31, 2012 and 62,914,987 shares 63 63 issued and outstanding at December 31, 2011 Additional paid in capital 915,119 927,902 Retained earnings (accumulated deficit) — (7,080 ) Total stockholders' equity 1,266,432 1,207,135 Total liabilities and stockholders' equity $ 2,530,859 $ 2,491,371 DUPONT FABROS TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Year ended December 31, 2012 2011 Cash flow from operating activities Net income $ 60,833 $ 79,480 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 89,241 75,070 Straight line rent, net of reserve (17,967) (34,095) Amortization of deferred financing costs 3,496 2,446 Amortization of lease contracts above and (3,194) (2,874) below market value Compensation paid with Company common 6,980 5,950 shares Changes in operating assets and liabilities Restricted cash 174 322 Rents and other receivables (2,452) 1,839 Deferred costs (1,278) (1,773) Prepaid expenses and other assets (6,028) (3,854) Accounts payable and accrued liabilities (1,112) (1,238) Accrued interest payable 73 (238) Prepaid rents and other liabilities 3,997 4,081 Net cash provided by operating activities 132,763 125,116 Cash flow from investing activities Investments in real estate – development (94,753) (351,090) Land acquisition costs (3,830) (9,507) Interest capitalized for real estate (4,434) (27,024) under development Improvements to real estate (4,426) (3,821) Additions to non-real estate property (57) (304) Net cash used in investing activities (107,500) (391,746) Cash flow from financing activities Issuance of preferred stock, net of 62,685 97,450 offering costs Line of credit: Proceeds 48,000 20,000 Repayments (50,000) — Mortgage notes payable: Repayments (5,200) (5,200) Return of escrowed proceeds — 1,104 Exercises of stock options 868 700 Payments of financing costs (2,109) (1,338) Dividends and distributions: Common shares (34,112) (29,338) Preferred shares (26,006) (19,325) Redeemable noncontrolling interests – (10,213) (9,971) operating partnership Net cash (used in) provided by financing (16,087) 54,082 activities Net increase (decrease) in cash and cash 9,176 (212,548) equivalents Cash and cash equivalents, beginning 14,402 226,950 Cash and cash equivalents, ending $ 23,578 $ 14,402 Supplemental information: Cash paid for interest $ 52,127 $ 54,358 Deferred financing costs capitalized for $ 277 $ 1,387 real estate under development Construction costs payable capitalized $ 6,334 $ 20,300 for real estate under development Redemption of operating partnership units $ 6,800 $ 66,500 Adjustments to redeemable noncontrolling $ 2,830 $ 56,535 interests – operating partnership DUPONT FABROS TECHNOLOGY, INC. Operating Properties As of December 31, 2012 Gross Raised Critical % % Property PropertyLocation YearBuilt/ Building Square Load Leased Renovated Area Feet MW (4) Commenced (2) (2) (3) (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 (6) 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 18.2 100% 100% I NJ1 Phase Piscataway, NJ 2010 180,000 88,000 18.2 39% 39% I VA3 (6) 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 2,023,000 993,000 169.1 90% 90% Completed not Stabilized CH1 Phase ElkGroveVillage,IL 2012 200,000 109,000 18.2 100% 71% II (6) SC1 Phase I Santa Clara, CA 2011 180,000 88,000 18.2 75% 44% (7) Subtotal—non-stabilized 380,000 197,000 36.4 88% 58% Total Operating Properties 2,403,000 1,190,000 205.5 90% 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. 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 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 totaling 184.1 MW. Leases executed as of (4) December 31, 2012 represent $238 million of base rent on a GAAP basis over the next twelve months. Additionally, on a cash basis, leases executed as of December 31, 2012 represent $235 million of base rent over the next twelve months. (5) Percentage commenced is expressed as a percentage of critical load where the lease has commenced under generally accepted accounting principles. In January 2013, leases at ACC5 and VA3 were restructured with a tenant and 0.55 MW was returned at ACC5 and 0.65 MW was returned at VA3. As of (6) February 5, 2013, ACC5 is 98% leased and commenced and VA3 is 51% leased and commenced. Additionally, an unrelated tenant at CH1 Phase II exercised their option to return 1.30 MW before the lease had commenced. As of February 5, 2013, CH1 Phase II is 93% leased and 86% commenced. (7) As of February 5, 2013, SC1 Phase I is 69% commenced. DUPONT FABROS TECHNOLOGY, INC. Lease Expirations As of December 31, 2012 Raised TotalkW %of Year of Number SquareFeet %ofLeased ofExpiring %of Annualized Lease ofLeases Expiring Raised Commenced LeasedkW BaseRent Expiration Expiring(1) (inthousands) SquareFeet Leases(2) (3) (2) 2013 (4) 2 8 0.8% 1,567 0.9% 1.0% 2014 6 35 3.6% 6,287 3.6% 3.9% 2015 4 70 7.1% 13,812 8.0% 7.3% 2016 4 32 3.3% 4,686 2.7% 2.7% 2017 10 69 7.0% 12,039 6.9% 6.6% 2018 11 121 12.3% 24,944 14.4% 14.5% 2019 11 168 17.1% 31,035 17.9% 16.3% 2020 9 96 9.8% 15,196 8.8% 8.8% 2021 7 130 13.2% 21,669 12.5% 13.4% 2022 6 75 7.6% 12,812 7.4% 7.9% After 2022 12 180 18.2% 29,185 16.9% 17.6% Total 82 984 100% 173,232 100% 100% (1) Represents 33 tenants with 82 lease expiration dates. Top three tenants represent 48% of annualized base rent. (2) Raised square footage is that portion of gross building area where the tenants locate their computer servers. One MW is equal to 1,000 kW. Annualized base rent represents the monthly contractual base rent (defined (3) as cash base rent before abatements) multiplied by 12 forcommenced leases totaling 173.2 MW as of December 31, 2012. One lease has a rolling option to terminate on six months' notice and has a scheduled maturity on September 30, 2013 with no notice received as of (4) today. The second lease will expire on December 31, 2013, representing 2,800 raised square feet, 430 kW of critical load and 0.2% of annualized base rent as notice was provided. DUPONT FABROS TECHNOLOGY, INC. Development Projects As of December 31, 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 $110,000 $ 100% (6) 97,819 Future Development Projects/Phases SC1 Phase II Santa Clara, CA 180,000 88,000 18.2 61,669 NJ1 Phase II Piscataway, NJ 180,000 88,000 18.2 39,212 360,000 176,000 36.4 100,881 Land Held for Development ACC7 Phase I Ashburn, VA 360,000 176,000 36.4 10,743 /II ACC8 Ashburn, VA 100,000 50,000 10.4 3,658 SC2PhaseI/II Santa Clara, CA 300,000 171,000 36.4 5,833 760,000 397,000 83.2 20,234 Total 1,251,000 638,000 132.6 $ 218,934 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. (2) Raised square footage is that portion of gross building area where the tenants locate their computer servers. 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 December 31, 2012. Future Phase II development (5) projects include only land, shell, underground work and capitalized interest through Phase I opening. ACC6 Phase II was placed into service on January 1, 2013 and 50% of the (6) leases commenced immediately. One-third of the remaining leases is expected to commence later in the first quarter of 2013 with the remaining leases expected to commence in the third quarter of 2013. DUPONT FABROS TECHNOLOGY, INC. Debt Summary as of December 31, 2012 ($ in thousands) Amounts %ofTotal Rates Maturities (years) Secured $ 139,600 20 % 3.2 % 1.9 Unsecured 568,000 80 % 8.3 % 4.2 Total $ 707,600 100 % 7.3 % 3.8 Fixed Rate Debt: Unsecured Notes $ 550,000 78 % 8.5 % 4.3 FixedRateDebt 550,000 78 % 8.5 % 4.3 Floating Rate Debt: Unsecured Credit Facility 18,000 2 % 2.1 % 3.2 ACC5 Term Loan 139,600 20 % 3.2 % 1.9 Floating Rate Debt 157,600 22 % 3.1 % 2.1 Total $ 707,600 100 % 7.3 % 3.8 The Company capitalized interest and deferred financing cost Note: amortization of $1.9 million and $4.7 million during the three and twelve months ended December 31, 2012, respectively. Debt Maturity as of December 31, 2012 ($ in thousands) Year FixedRate FloatingRate Total %ofTotal Rates 2013 $ — $ 5,200 $ 5,200 0.7 % 3.2 % 2014 — 134,400(2) 134,400 19.0 % 3.2 % 2015 125,000 (1) — 125,000 17.7 % 8.5 % 2016 125,000 (1) 18,000(3) 143,000 20.2 % 7.7 % 2017 300,000 (1) — 300,000 42.4 % 8.5 % Total $ 550,000 $ 157,600 $ 707,600 100 % 7.3 % (1) The Unsecured Notes have mandatory amortization payments due December 15 of each respective year. (2) Remaining principal payment on the ACC5 Term Loan due on December 2, 2014 with no extension option. (3) The Unsecured Credit Facility matures on May 6, 2016 with a one-year extension option. DUPONT FABROS TECHNOLOGY, INC. Selected Unsecured Debt Metrics 12/31/12 12/31/11 Interest Coverage Ratio (not less than 2.0) 4.0 3.5 Total Debt to Gross Asset Value (not to exceed 60%) 24.9% 26.3% Secured Debt to Total Assets (not to exceed 40%) 4.9% 5.3% Total Unsecured Assets to Unsecured Debt (not less 334.3% 329.5% 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 December 31, 2012 (in thousands except per share data) Line of Credit $ 18,000 Mortgage Notes Payable 139,600 Unsecured Notes 550,000 Total Debt 707,600 23.3 % Common Shares 77 % 63,341 Operating Partnership ("OP") 23 % 18,787 Units Total Shares and Units 100 % 82,128 Common Share Price at December 31, $ 2012 24.16 Common Share and OP Unit Capitalization $ 1,984,212 Preferred Stock ($25 per share liquidation 351,250 preference) Total Equity 2,335,462 76.7 % Total Market Capitalization $ 100.0 % 3,043,062 DUPONT FABROS TECHNOLOGY, INC. Common Share and OP Unit Weighted Average Amounts Outstanding YTD YTD Q4 2012 Q4 2011 Q4 2012 Q4 2011 Weighted Average Amounts Outstanding for EPS Purposes: Common Shares – basic 63,000,839 62,217,754 62,866,189 61,241,520 Shares issued from assumed conversion of: - Restricted Shares 115,880 264,933 126,534 267,593 - Stock Options 716,932 759,601 761,283 794,792 - Performance Units — — — — Total Common Shares - diluted 63,833,651 63,242,288 63,754,006 62,303,905 Weighted Average Amounts Outstanding for FFO and AFFO Purposes: Common Shares – basic 63,000,839 62,217,754 62,866,189 61,241,520 OP Units – basic 18,828,886 19,254,830 18,884,769 20,145,522 Total Common Shares and OP 81,829,725 81,472,584 81,750,958 81,387,042 Units Shares and OP Units issued from assumed conversion of: - Restricted Shares 115,880 264,933 126,534 267,593 - Stock Options 716,932 759,601 761,283 794,792 - Performance Units — — — — Total Common Shares and Units - 82,662,537 82,497,118 82,638,775 82,449,427 diluted Period Ending Amounts Outstanding: Common Shares 63,340,929 OP Units 18,786,806 Total Common Shares and Units 82,127,735 DUPONT FABROS TECHNOLOGY, INC. 2013 Guidance The earnings guidance/projections provided below are based on current expectations and are forward-looking. Expected Q1 2013 Expected 2013 per share per share Net income per common share and unit – $0.10 to $0.12 $0.62 to $0.76 diluted Depreciation and amortization, net 0.28 1.14 FFO per share – diluted (1) $0.38 to $0.40 $1.76 to $1.90 2013 Debt Assumptions Weighted average debt outstanding $690.0 million Weighted average interest rate 7.50% Total interest costs $51.8 million Amortization of deferred financing costs 3.7 million Interest expense capitalized (2) (1.8) million Deferred financing costs amortization (0.1) million capitalized (2) Total interest expense after capitalization $53.6 million 2013 Other Guidance Assumptions Total revenues $365 to $385 million Base rent (included in total revenues) $240 to $255 million Straight-line revenues (included in base rent) $7 to $15 million General and administrative expense $18 million Investments in real estate – development (2) $65 million Improvements to real estate excluding $6 million development Preferred stock dividends $27 million Annualized common stock dividend $0.80 per share Weighted average common shares and OP units - 83 million diluted Common share repurchase No amounts budgeted Acquisition of income producing properties No amounts budgeted (1) For information regarding FFO, see "Reconciliations of Net Income to FFO and AFFO" on page 6 of this earnings release. (2) Represents one development start mid-year. SOURCE DuPont Fabros Technology, Inc. Website: htp://www.dft.com Contact: Investor Relations Contacts: Mr. Mark L. Wetzel, EVP, CFO & Treasurer, +1-202-728-0033, firstname.lastname@example.org; or Mr. Christopher A. Warnke, Manager, Investor Relations, +1-202-478-2330, email@example.com
DuPont Fabros Technology, Inc. Reports Fourth Quarter 2012 Results
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