Digital Realty Trust, Inc. Reports Second Quarter FFO Of $1.22 Per Share, Up 11.9% Over Second Quarter 2012

 Digital Realty Trust, Inc. Reports Second Quarter FFO Of $1.22 Per Share, Up
                        11.9% Over Second Quarter 2012

PR Newswire

SAN FRANCISCO, July 26, 2013

SAN FRANCISCO, July 26, 2013 /PRNewswire/ --Digital Realty Trust, Inc. (NYSE:
DLR), a leading global provider of data center solutions, today announced
financial results for the second quarter of 2013. All per share results are
on a diluted share and unit basis.

Highlights:

  oReported FFO of $1.22 per share for the second quarter of 2013, up 11.9%
    from $1.09 per share for the second quarter of 2012. Excluding certain
    items that do not represent core expenses or revenue streams in each
    quarter, second quarter 2013 core FFO was $1.19 per share, up 11.2% from
    second quarter 2012 core FFO of $1.07 per share;
  oReported net income for the second quarter of 2013 of $59.6 million and
    net income available to common stockholders of $47.1 million, or $0.37 per
    share, compared to $0.38 per share for the second quarter of 2012;
  oAcquired two properties totaling nearly 354,000 square feet and a
    three-acre land site for a total purchase price of approximately $39.4
    million;
  oSince the end of the first quarter, signed leases totaling $35.6 million
    in annualized GAAP rental revenue, which includes over $16.0 million in
    annualized GAAP rental revenue of new lease signings in the second quarter
    of 2013 and an additional $19.6 million in annualized GAAP rental revenue
    of new lease signings in July;
  oCommenced leases during the second quarter of 2013 totaling approximately
    $24.6 million of annualized GAAP rental revenue;
  oCompleted the sale of 10.0 million shares of 5.875% Series G Cumulative
    Redeemable Preferred Stock, including the partial exercise of the
    underwriters' over-allotment option, raising net proceeds of approximately
    $241.6 million; and
  oRaised 2013 FFO guidance range to $4.73 to $4.82 per share and narrowed
    2013 core FFO guidance to $4.74 to $4.83 per share.

Funds from operations ("FFO"), on a diluted basis, was $167.8 million in the
second quarter of 2013, or $1.22 per share, up 5.2% from $1.16 per share in
the first quarter of 2013, and up 11.9% from $1.09 per share in the second
quarter of 2012. Excluding certain items that do not represent core expenses
or revenue streams, second quarter 2013 core FFO was $1.19 per share, up 0.8%
from first quarter 2013 core FFO of $1.18 per share, and up 11.2% from second
quarter 2012 core FFO of $1.07 per share.

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 second quarter of 2013 was $59.6 million, compared to $51.7
million for the first quarter of 2013 and $54.0 million for the second quarter
of 2012. Net income available to common stockholders in the second quarter of
2013 was $47.1 million, or $0.37 per share, compared to $42.7 million, or
$0.34 per share, in the first quarter of 2013, and $42.0 million, or $0.38 per
share, in the second quarter of 2012.

The Company reported total operating revenues of $363.5 million in the second
quarter of 2013, up 1.4% from $358.4 million in the first quarter of 2013, and
up 19.7% from $303.7 million in the second quarter of 2012.

"We are very pleased with our operating performance and second quarter
financial results," said Michael F. Foust, Chief Executive Officer of Digital
Realty. "Our leasing volume and pipeline remain robust despite some lease
agreements that we expected to sign in the second quarter ultimately being
completed in July.We are encouraged by the notably strong rental rates we
are seeing across the portfolio for new Turn-Key Flex^SM leases and renewals.
We also continue to see strong demand for multi-megawatt, multi-site
requirements from our larger enterprise clients, and are positioned to
leverage our unique position in the market to capture those opportunities. We
remain confident that our operational expertise, scale, global footprint and
financial resources continue to enable us to execute on our strategic plan and
enhance shareholder value." 

Leasing Activity

Since the end of the first quarter, the Company signed leases totaling $35.6
million in annualized GAAP rental revenue, which includes over $16.0 million
in annualized GAAP rental revenue of new lease signings in the second quarter
of 2013 and an additional $19.5 million in annualized GAAP rental revenue of
new lease signings in July.

Of the total leases signed during the second quarter of 2013, 111,000 square
feet was for space located in the Company's North American portfolio. This
includes 50,000 square feet of Turn-Key Flex^SM space leased at an average
annual GAAP rental rate of $209.00 per square foot, nearly 39,000 square feet
of Powered Base Building® space leased at an average annual GAAP rental rate
of $23.00 per square foot, over 8,000 square feet of colocation space leased
at an average annual GAAP rental rate of $223.00 per square foot, and nearly
14,000 square feet of non-technical space leased at an average annual GAAP
rental rate of $24.00 per square foot.

Leases signed during the second quarter of 2013 for space in the Company's
European portfolio totaled over 4,000 square feet of Turn-Key Flex space
leased at an average annual GAAP rental rate of $188.00 per square foot.

Leases signed during the second quarter of 2013 for space in the Company's
Asia Pacific portfolio totaled over 7,000 square feet of Turn-Key Flex space
leased at an average annual GAAP rental rate of $223.00 per square foot, and
over 1,000 square feet of non-technical space leased at an average annual GAAP
rental rate of $71.00 per square foot.

For the quarter ended June 30, 2013, the Company commenced leases totaling
nearly $24.6 million of annualized GAAP rental revenue, including over $1.6
million of colocation revenue. 

Acquisitions Activity

In April 2013, the Company acquired a three-acre land site in London for a
previously signed built-to-suit agreement for a purchase price of $3.6
million. In May 2013, the Company also acquired a six-building portfolio
consisting of operating data centers and flex office space totaling 337,000
square feet in Austin, Texas for a purchase price of $31.9 million. Two of
the six buildings, totaling approximately 100,000 net rentable square feet,
are operating data centers that are 100% leased to three tenants. The
remaining four properties consist of flex office space.

In June 2013, the Company completed a sale leaseback transaction with KPN, a
leading Dutch provider of telecommunications and information and communication
technologies, for a partially-built data center in Groningen, Netherlands for
a purchase price of $3.9 million. An additional $3.9 million will be paid
upon completion of construction which is expected by October 2013. This
initial development will total approximately 16,800 square feet of space.
The entire site is capable of supporting additional development and has the
potential capacity for a total of 2.5 megawatts of critical load.

As of June 30, 2013, the Company's portfolio comprised 127 properties,
including three properties held in unconsolidated joint ventures, consisting
of 187 buildings totaling approximately 23.7 million net rentable square feet,
including 2.8 million square feet of space held for development. 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 $9.2 billion at June 30, 2013 from $9.0
billion at March 31, 2013. Total debt remained at $4.7 billion at June 30,
2013 as compared to March 31, 2013. Stockholders' equity was approximately
$3.5 billion at June 30, 2013, compared to $3.3 billion at March 31, 2013.

On April 9, 2013, the Company completed the sale of 10.0 million shares of its
5.875% Series G Cumulative Redeemable Preferred Stock, including the partial
exercise of the underwriters' over-allotment option, raising net proceeds of
approximately $241.6 million.

"We continue to maintain a disciplined approach to managing our balance sheet,
which includes a positive-spread-to-investment approach to our acquisitions
and leasing and development programs," said A. William Stein, CFO and Chief
Investment Officer of Digital Realty. "At the same time, we remain committed
to our strategy of accessing capital from multiple sources to support the
growth of our global platform."

The Company is raising its 2013 FFO guidance range to $4.73 to $4.82 per share
from $4.65 to $4.80 per share, and is narrowing 2013 core FFO guidance range
to $4.74 to $4.83 per share from $4.70 to $4.85 per share. The 2013 guidance
provided by Digital Realty in this press release is based on the following
assumptions as of July 26, 2013:

  oData center space delivered representing approximately $986 million
    generating ROI of 10% - 12%;
  oDigital Design Services revenue of $2 – $4 million;
  oAcquisitions of income producing properties totaling $300 – $400 million
    at an average cap rate of 7.25% - 7.75%;
  oDevelopment and redevelopment capital expenditures of $850 - $950 million;
  oPortfolio capital expenditures of $60 – $75 million;
  oTotal G&A expenses of $65 – $68 million;
  oTransaction expenses of $6 – $9 million; and
  oFX rates (USD per currency): Euro = 1.27; Pound = 1.48; SGD = 0.81; AUS =
    0.90.

Investor Conference Call Details

Digital Realty will host a conference call on Friday, July 26, 2013 at 10:00
am PT / 1:00 pm ET to discuss its second quarter 2013 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 # 12508897 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, telephone and webcast replays
will be available until 11:59 pm ET on Monday, August 26, 2013. 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 # 12508897. 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 127 properties,
including three properties held as investments in unconsolidated joint
ventures, comprise approximately 23.7 million square feet as of June 30, 2013,
including 2.8 million square feet of space held for development. Digital
Realty's portfolio is located in 32 markets throughout North America, Europe,
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 supply and demand for data center
space, leasing volume and pipeline, rent from leases that have been signed but
have not yet commenced and other contracted rent to be received in future
periods, rental rates on future leases, managing our balance sheet, strategy
of accessing capital, development plans and expected timing, size and IT
capacity of development projects, expectations regarding the Company's future
growth, financial resources and success and the Company's 2013 FFO, core FFO
and net income guidance. 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
developed properties or businesses; the suitability of our properties and data
center infrastructure, delays or disruptions in connectivity, failure of our
physical infrastructure or services or availability of power; risks related to
joint venture investments, including as a result of our lack of control of
such investments; delays or unexpected costs in development 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 development; 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, 2012 and
Quarterly Report on Form 10-Q for the quarter ended March 31, 2013. 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.

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

Digital Realty Trust, Inc. and Subsidiaries
Condensed Consolidated Income Statements
(in thousands, except share and per share data)
(unaudited)
                        Three Months Ended            Six Months Ended
                        June 30, 2013  June 30, 2012  June 30,     June 30,
                                                      2013         2012
Operating Revenues:
 Rental                 $ 285,953     $ 234,923     $ 567,352   $ 457,757
 Tenant reimbursements  76,681         60,422         152,598      118,284
 Construction           728            1,954          1,534        4,406
 management
 Other                  140            6,405          388          6,405
    Total operating     363,502        303,704        721,872      586,852
    revenues
Operating Expenses:
 Rental property
 operating and          106,336        87,576         213,116      167,421
 maintenance
 Property taxes         19,374         15,769         40,416       31,811
 Insurance              2,238          2,260          4,443        4,490
 Construction           294            596            678          789
 management
 Depreciation and       115,867        89,000         227,490      172,995
 amortization
 General and            17,891         15,109         33,842       29,359
 administrative
 Transactions           1,491          4,608          3,254        5,285
 Other                  17             337            53           337
     Total operating 263,508        215,255        523,292      412,487
    expenses
     Operating       99,994         88,449         198,580      174,365
    income
Other Income
(Expenses):
 Equity in earnings of
 unconsolidated joint   2,330          3,493          4,665        4,882
 ventures
 Gain on insurance      5,597          -              5,597        -
 settlement
 Interest and other     (6)            1,216          35           1,925
 income
 Interest expense       (47,583)       (37,681)       (95,661)     (75,711)
 Tax expense            (210)          (1,206)        (1,413)      (1,927)
 Loss from early        (501)          (303)          (501)        (303)
 extinguishment of debt
Net Income              59,621         53,968         111,302      103,231
 Net income
 attributable to        (1,145)        (1,634)        (2,115)      (2,855)
 noncontrolling
 interests
Net Income Attributable
to Digital Realty       58,476         52,334         109,187      100,376
Trust, Inc.
 Preferred stock        (11,399)       (10,313)       (19,453)     (19,144)
 dividends
Net Income Available to $  47,077     $  42,021     $  89,734   $  81,232
Common Stockholders
 Net income per share
 available to common
 stockholders:
  Basic              $    0.37  $    0.38  $         $   
                                                      0.70        0.75
  Diluted            $    0.37  $    0.38  $         $   
                                                      0.70        0.75
 Weighted average
 shares outstanding:
  Basic              128,419,745    109,761,017    127,437,970  108,430,437
  Diluted            128,623,076    110,166,082    127,627,496  108,809,574



Digital Realty Trust, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
                                              June 30, 2013  December 31, 2012
ASSETS                                        (unaudited)
Investments in real estate
Properties:
 Land                                      $  690,356    $  661,058
 Acquired ground leases                    13,216         13,658
 Buildings and improvements                8,125,636      7,662,973
 Tenant improvements                       432,631        404,830
Total investments in properties               9,261,839      8,742,519
Accumulated depreciation and amortization     (1,377,375)    (1,206,017)
Net investments in properties                 7,884,464      7,536,502
Investment in unconsolidated joint ventures   74,047         66,634
Net investments in real estate                7,958,511      7,603,136
Cash and cash equivalents                     24,260         56,281
Accounts and other receivables, net          159,847        168,286
Deferred rent                                 360,588        321,715
Acquired above market leases, net            56,310         65,055
Acquired in place lease value and deferred    492,884        495,205
leasing costs, net
Deferred financing costs, net                31,881         30,621
Restricted cash                               38,977         44,050
Other assets                                  61,601         34,865
Total Assets                                  $ 9,184,859    $ 8,819,214
LIABILITIES AND EQUITY
Global revolving credit facility              $  610,328    $  723,729
Unsecured term loan                           741,178        757,839
Unsecured senior notes, net of discount       2,342,990      1,738,221
Exchangeable senior debentures                266,400        266,400
Mortgage loans, net of premiums               737,352        792,376
Accounts payable and other accrued            617,766        646,427
liabilities
Accrued dividends and distributions           -              93,434
Acquired below market leases, net             137,297        148,233
Security deposits and prepaid rents           148,278        154,171
Total Liabilities                             5,601,589      5,320,830
Equity:
Stockholders' equity                          3,547,111      3,468,305
Noncontrolling interests                      36,159         30,079
Total Equity                                  3,583,270      3,498,384
Total Liabilities and Equity                  $ 9,184,859    $ 8,819,214



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             Six Months Ended
                           June 30,  March 31, June 30,   June 30,   June 30,
                           2013      2013      2012       2013       2012
Net income available to    $ 47,077 $ 42,657 $ 42,021  $ 89,734  $ 81,232
common stockholders
Adjustments:
Noncontrolling interests   936       824       1,661      1,760      3,247
in operating partnership
Real estate related
depreciation and           114,913   110,690   88,186     225,603    171,179
amortization (1)
Real estate related
depreciation and
amortization related to    797       833       866        1,630      1,771
investment in
 unconsolidated joint
ventures
Gain on sale of assets
held in unconsolidated     -         -         (2,325)    -          (2,325)
joint venture
FFO available to common
stockholders and           $ 163,723 $ 155,004 $ 130,409  $ 318,727  $ 255,104
unitholders (2)
Basic FFO per share and    $      $      $       $       $   
unit                       1.25     1.20     1.14      2.45      2.26
Diluted FFO per share and  $      $      $       $       $   
unit (2)                   1.22     1.16     1.09      2.37      2.15
Weighted average common
stock and units
outstanding
Basic                      130,974   128,888   114,100    129,937    112,767
Diluted (2)                137,787   137,680   125,824    137,676    125,588
(1) Real estate related depreciation and amortization was
computed as follows:
 Depreciation and
amortization per income    115,867   111,623   89,000     227,490    172,995
statement
 Non-real estate        (954)     (933)     (814)      (1,887)    (1,816)
depreciation
                           $ 114,913 $ 110,690 $ 88,186  $ 225,603  $ 171,179

(2) At June 30, 2013, we had 0 series D convertible preferred shares
outstanding, as a result of the conversion of all remaining shares on February
26, 2013, which calculates into 949 common shares on a weighted average basis
for the six months ended June 30, 2013. At March 31, 2013, we had 0 series D
convertible preferred shares outstanding which calculates into 1,909 common
shares on a weighted average basis for the three months ended March 31, 2013.
At June 30, 2012, we had 0 series C convertible preferred shares (as a result
of the conversion of all remaining shares on April 17, 2012) and 6,964 series
D convertible preferred shares outstanding that were convertible into 489
common shares and 4,374 common shares on a weighted average basis for the
three months ended June 30, 2012, respectively. At June 30, 2012, we had 0
series C convertible preferred shares and 6,964 series D convertible preferred
shares outstanding that were convertible into 1,637 common shares and 4,356
common shares on a weighted average basis for the six months ended June 30,
2012, respectively. For the three months ended June 30, 2013, March 31, 2013
and June 30, 2012, we have excluded the effect of dilutive series E, series F
and series G preferred stock, as applicable, that may be converted upon the
occurrence of specified change in control transactions as described in the
articles supplementary governing the series E, series F and series G preferred
stock, as applicable, which we consider highly improbable; if included, the
dilutive effect for the three months ended June 30, 2013, March 31, 2013 and
June 30, 2012 would be 11,949, 7,161 and 6,470 shares, respectively. For the
six months ended June 30, 2013 and June 30, 2012, we have excluded the effect
of dilutive series E, series F and series G preferred stock, as applicable,
that may be converted upon the occurrence of specified change in control
transactions as described in the articles supplementary governing the series
E, series F and series G preferred stock, as applicable, which we consider
highly improbable; if included, the dilutive effect for the six months ended
June 30, 2013 and June 30, 2012 would be 9,565 and 5,179 shares,
respectively. In addition, we had a balance of $266,400 of 5.50% exchangeable
senior debentures due 2029 that were exchangeable for 6,610, 6,590 and 6,456
common shares on a weighted average basis for the three months ended June 30,
2013, March 31, 2013 and June 30, 2012, respectively, and were exchangeable
for 6,600 and 6,449 common shares on a weighted average basis for the six
months ended June 30, 2013 and June 30, 2012, respectively. See below for
calculations of diluted FFO available to common stockholders and unitholders
and weighted average common stock and units outstanding.

                           Three Months Ended             Six Months Ended
                           June 30,  March 31, June 30,   June 30,   June 30,
                           2013      2013      2012       2013       2012
FFO available to common
stockholders and           $ 163,723 $ 155,004 $ 130,409  $ 318,727  $ 255,104
unitholders
Add: Series C convertible -         -         -          -          1,402
preferred dividends
Add: Series D convertible -         -         2,394      -          4,792
preferred dividends
Add: 5.50% exchangeable
senior debentures interest 4,050     4,050     4,050      8,100      8,100
expense
FFO available to common
stockholders and           $ 167,773 $ 159,054 $ 136,853  $ 326,827  $ 269,398
unitholders -- diluted
Weighted average common
stock and units            130,974   128,888   114,100    129,937    112,767
outstanding
Add: Effect of dilutive
securities (excluding
series C and D convertible
preferred stock            203       293       405        190        379
 and 5.50%
exchangeable senior
debentures)
Add: Effect of dilutive
series C convertible       -         -         489        -          1,637
preferred stock
Add: Effect of dilutive
series D convertible       -         1,909     4,374      949        4,356
preferred stock
Add: Effect of dilutive
5.50% exchangeable senior  6,610     6,590     6,456      6,600      6,449
debentures
Weighted average common
stock and units            137,787   137,680   125,824    137,676    125,588
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             Six Months Ended
                           June 30,  March 31, June 30,   June 30,   June 30,
                           2013      2013      2012       2013       2012
FFO available to common
stockholders and           $ 167,773 $ 159,054 $ 136,853  $ 326,827  $ 269,398
unitholders -- diluted
Termination fees and other (140)     (248)     (7,824)    (388)      (7,824)
non-core revenues ^(3)
Gain on insurance          (5,597)   -         -          (5,597)    -
settlement
Significant transaction    1,491     1,763     4,608      3,254      5,285
expenses
Loss from early            501       -         303        501        303
extinguishment of debt
Change in fair value of
contingent consideration   (370)     1,300     -          930        -
^(4)
Other non-core expense     17        36        337        53         337
adjustments ^(5)
CFFO available to common
stockholders and           $ 163,675 $ 161,905 $ 134,277  $ 325,580  $ 267,499
unitholders -- diluted
Diluted CFFO per share and $      $      $       $       $   
unit                       1.19     1.18     1.07       2.36      2.13
(3) Includes one-time fees, proceeds and certain other adjustments that are
not core to our business.
(4) Relates to earn-out contingency in connection with Sentrum Portfolio
acquisition.
(5) Includes reversal of accruals and certain other adjustments that are not
core to our business.



A reconciliation of the range of 2013 projected net income to projected FFO
and core FFO follows:
                                                                  Low - High
Net income available to common stockholders per diluted share  $1.45 – 1.54
 Add:
Real estate depreciation and amortization                         $3.43
 Less:
Dilutive impact of convertible stock                              ($0.15)
 Projected FFO per diluted share               $4.73– 4.82
Adjustments for items that do not represent core expenses and     $0.01
revenue streams
 Projected core FFO per diluted share          $4.74 – 4.83

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 core 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.

SOURCE Digital Realty Trust, Inc.

Website: http://www.digitalrealtytrust.com