DuPont Fabros Technology, Inc. Reports Fourth Quarter 2013 Results Revenues increase 16%; Normalized FFO per share increases 50% 2014 Guidance provided PR Newswire WASHINGTON, Jan. 30, 2014 WASHINGTON, Jan. 30, 2014 /PRNewswire/ --DuPont Fabros Technology, Inc. (NYSE: DFT) is reporting results for the quarter ended December31, 2013. All per share results are reported on a fully diluted basis. (Logo: http://photos.prnewswire.com/prnh/20120104/MM29780LOGO) Highlights oAs of December31, 2013, our operating portfolio was stabilized at 94% leased and commenced. oQuarterly Highlights: oNormalized Funds from Operations ("Normalized FFO") of $0.57 per share representing a 50% increase over the prior year quarter and a 12% increase sequentially. oAdjusted Funds from Operations ("AFFO") per share of $0.56 representing a 51% increase over the prior year quarter and an 8% increase sequentially. oCommenced one lease totaling 1.14 megawatts ("MW") and 5,500 computer room square feet. oRenewed two leases scheduled to expire in 2014, each for five years, totaling 1.17 MW and 9,760 computer room square feet. oRepaid the remaining 24% of the $550 million 8.5% Senior Notes due 2017. oExercised the accordion on the unsecured term loan, increasing its total capacity from $195 million to $250 million. oSubsequent to the Fourth Quarter 2013: oDeclared first quarter 2014 dividend of $0.35 per share, an increase of 40% over the prior quarter. Hossein Fateh, President and Chief Executive Officer, said, "DFT enters 2014 with a strong balance sheet poised for new growth. We had record lease commencements of 33 megawatts in 2013 which resulted in 32% growth in Normalized FFO per share as compared to 2012. We continue to focus on the lease up of our existing available inventory and our two new developments to fuel our future growth." Fourth Quarter 2013 Results For the quarter ended December31, 2013, earnings were $0.18 per share compared to earnings of $0.11 per share for the fourth quarter of 2012. The $0.18 per share of earnings includes an $0.11 per share loss on early extinguishment of debt related to the call of the remaining 8.5% Senior Notes due 2017. Excluding the $0.11 per share loss on early extinguishment of debt, earnings were $0.28 per share, an increase of 155% over the prior year quarter. Revenues increased 16%, or $13.5 million, to $99.4 million for the fourth quarter of 2013 over the fourth quarter of 2012. The increase in revenues is primarily due to new leases commencing. Normalized FFO is FFO with the loss on early extinguishment of debt added back. Normalized FFO for the quarter ended December31, 2013 was $0.57 per share compared to $0.38 per share for the fourth quarter of 2012. The increase of $0.19 per share, or 50%, from the prior year quarter is primarily due to the following: oHigher operating income excluding depreciation of $0.16 per share and oLower interest expense of $0.03 per share from lower interest rates and higher capitalized interest. Full Year 2013 Results For the year ended December31, 2013, earnings were $0.32 per share compared to $0.41 per share for 2012. Earnings of $0.32 per share includes losses on the early extinguishment of debt of $0.50 per share from our refinancing of the 8.5% Senior Notes Due 2017 and the ACC5 Term Loan. Excluding the $0.50 per share loss on early extinguishment of debt, earnings were $0.82 per share, an increase of 100% over 2012. Revenues increased 13%, or $42.7 million, to $375.1 million for 2013 versus 2012. The increase in revenues is primarily due to new leases commencing. Normalized FFO for the year ended December31, 2013 was $1.96 per share, compared to $1.48 per share for 2012. The increase of $0.48 per share, or 32%, from 2012 is primarily due to higher operating income excluding depreciation. Portfolio Update During the fourth quarter 2013, we: oRenewed one lease at VA3 for five years totaling 0.60 MW and 7,060 computer room square feet and one lease for five years at ACC5 totaling 0.57 MW and 2,700 computer room square feet. In 2013, we: oSigned five leases and a pre-lease with a weighted average lease term of 5.5 years totaling 15.71 MW and 106,130 computer room square feet that are expected to generate approximately $16.0 million of annualized GAAP base rent revenue which includes $1.0 million of management fees. oCommenced 14 leases totaling 33.31 MW and 201,225 computer room square feet. oRenewed five leases by a weighted average of 3.8 years totaling 5.72 MW and 31,460 computer room square feet. Development Update We are currently under development at ACC7 Phase I (11.9 MW) and SC1 Phase IIA (9.1 MW). Both of these developments are on time and on budget, with completion expected in mid-2014. SC1 Phase IIA is 50% pre-leased. Balance Sheet and Liquidity In September 2013, we issued $600 million of Senior Notes due 2021 at par bearing an interest rate of 5.875%. The proceeds from this issuance were used to retire our 8.5% Senior Notes due 2017. Bondholders tendered $418.1 million of these notes outstanding and we settled this tender on September 24, 2013 for $443.4 million which included a premium of $25.3 million. On October 24, 2013, we redeemed the remaining bonds for $139.0 million which included a premium of $7.1 million. In September 2013, we entered into a $195 million senior unsecured term loan. This loan bears interest at LIBOR plus 1.75% and matures on February 15, 2019 with no extension option. In October 2013, we exercised the accordion feature of this loan which increased its total capacity by $55 million to $250 million. This loan includes a delayed draw feature, and as of December31, 2013 we had drawn $154.0 million of the total $250 million. The remaining $96.0 million was drawn in January 2014. In September 2013, the Company's Board of Directors approved a new common stock repurchase program that commenced in November 2013 and expires on December 31, 2014. The new program allows purchases of up to $142.2 million. In the fourth quarter of 2013, we did not repurchase any shares. As of December31, 2013, we had $39 million of cash, $96 million of available capacity on our unsecured term loan and $400 million of available capacity under our revolving credit facility. Dividend Yesterday, we announced that our first quarter 2014 dividend is $0.35 per share which is a 40% increase from the fourth quarter 2013 dividend of $0.25 per share. The increase is due to a forecasted increase in taxable income in 2014 as the Company's policy is to pay out 100% of taxable income as a dividend. Jeff Foster, Chief Financial Officer, said, "We are pleased to announce our fourth dividend increase in the last two years. The 2014 annualized dividend of $1.40 per share represents an estimated Normalized FFO payout ratio of 60 percent at the midpoint of our 2014 guidance." The Normalized FFO payout ratio in 2013 was 48% and the AFFO payout ratio was 51%. First Quarter and Full Year 2014 Guidance Our Normalized FFO guidance range is $0.56 to $0.58 per share for the first quarter of 2014. The midpoint of this range is equal to our fourth quarter 2013 Normalized FFO per share of $0.57. Our 2014 Normalized FFO guidance range is $2.28 to $2.38 per share and the lower end of this range assumes no additional leases will be executed through the end of this calendar year. The assumptions underlying this guidance can be found on page 15 of this earnings release. The $0.37 per share, or 19%, increase between our full year 2013 Normalized FFO per share of $1.96 and the mid-point of the 2014 guidance range is primarily due to: oHigher operating income excluding depreciation of $0.25 per share primarily from new leases commencing in 2013 and 2014 and oLower interest expense of $0.12 per share of which $0.07 per share is due to higher capitalized interest and the remainder is due to decreasing the average interest rate of our debt by 185 basis points in 2014, partially offset by an increase in our average outstanding debt of $198 million. Fourth Quarter 2013 Conference Call and Webcast Information We will host a conference call to discuss these results today, Thursday, January 30, 2014 at 1:00 p.m. ET. To access the live call, please visit the Investor Relations section of our website at www.dft.com or dial 1-877-870-4263 (domestic) or 1-412-317-0790 (international). A replay will be available for seven days by dialing 1-877-344-7529 (domestic) or 1-412-317-0088 (international) using passcode 10039043. The webcast will be archived on our website for one year at www.dft.comon 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 our control. We face many risks that could cause our actual performance to differ materially from the results contemplated by our forward-looking statements, including, without limitation, the risk that the assumptions underlying our full year and first quarter 2014 guidance are not realized, the risks related to the leasing of available space to third-party customers, including delays in executing new leases and failure to negotiate leases on terms that will enable us to achieve our expected returns, risks related to the collection of accounts and notes receivable, the risk that we 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 we will not declare and pay dividends as anticipated for 2014 and the risk that we may not be able to maintain our qualification as a REIT for federal tax purposes. The periodic reports that we file with the Securities and Exchange Commission, including the annual report on Form 10-K for the year ended December 31, 2012 and the quarterly reports on Form 10-Q for the quarters ended September 30, 2013, June 30, 2013 and March 31, 2013, contain detailed descriptions of these and many other risks to which we are subject. These reports are available on our website at www.dft.com. Because of the risks described above and other unknown risks, our actual results, performance or achievements may differ materially from the results, performance or achievements contemplated by our forward-looking statements. The information set forth in this news release represents our expectations and intentions only as of the date of this press release. We assume 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 31, Year ended December 31, 2013 2012 2013 2012 Revenues: Base rent (1) $ 68,904 $ 61,000 $ 265,695 $ 236,810 Recoveries from 28,515 23,702 104,271 91,049 tenants (1) Other revenues 2,025 1,257 5,143 4,586 Total revenues 99,444 85,959 375,109 332,445 Expenses: Property operating 28,124 24,286 103,522 94,646 costs Real estate taxes 3,436 3,474 14,380 12,689 and insurance Depreciation and 23,285 22,356 93,058 89,241 amortization General and 3,715 3,310 16,261 17,024 administrative Other expenses 1,419 4,773 3,650 6,919 Total expenses 59,979 58,199 230,871 220,519 Operating income 39,465 27,760 144,238 111,926 Interest income 52 56 137 168 Interest: Expense incurred (8,953) (11,294) (46,443) (47,765) Amortization of deferred financing (807) (819) (3,349) (3,496) costs Loss on early extinguishment of (8,668) — (40,978) — debt Net income 21,089 15,703 53,605 60,833 Net income attributable to redeemable noncontrolling (2,817) (2,046) (5,214) (7,803) interests – operating partnership Net income attributable to 18,272 13,657 48,391 53,030 controlling interests Preferred stock (6,812) (6,812) (27,245) (27,053) dividends Net income attributable to $ 11,460 $ 6,845 $ 21,146 $ 25,977 common shares Earnings per share – basic: Net income attributable to $ 0.18 $ 0.11 $ 0.32 $ 0.41 common shares Weighted average common shares 64,685,508 63,000,839 64,645,316 62,866,189 outstanding Earnings per share – diluted: Net income attributable to $ 0.18 $ 0.11 $ 0.32 $ 0.41 common shares Weighted average common shares 65,439,427 63,833,651 65,474,039 63,754,006 outstanding Dividends declared $ 0.25 $ 0.20 $ 0.95 $ 0.62 per common share (1) Effective this quarter, we reclassified the management fee that we collect from customers from "Recoveries from tenants" to "Base rent." All periods presented were conformed to this change. We believe that this change more accurately reflects the true nature of our management fee which is equivalent to additional rent for the Company with no offsetting direct expenses. We continue to recover all of our property management expenses under our triple net lease structure and these recoveries are still reported in "Recoveries from tenants." DUPONT FABROS TECHNOLOGY, INC. RECONCILIATIONS OF NET INCOME TO FFO, NORMALIZED FFO AND AFFO ^(1) (unaudited and in thousands except share and per share data) Three months ended Year ended December 31, December 31, 2013 2012 2013 2012 Net income $ 21,089 $ 15,703 $ 53,605 $ 60,833 Depreciation and 23,285 22,356 93,058 89,241 amortization Less: Non real estate depreciation and (186) (238) (875) (1,023) amortization FFO 44,188 37,821 145,788 149,051 Preferred stock dividends (6,812) (6,812) (27,245) (27,053) FFO attributable to common $ 37,376 $ 31,009 $ 118,543 $ 121,998 shares and OP units Loss on early 8,668 — 40,978 — extinguishment of debt Normalized FFO 46,044 31,009 159,521 121,998 Straight-line revenues, net (1,597) (1,143) (6,920) (17,967) of reserve Amortization of lease contracts above and below (598) (599) (2,391) (3,194) market value Compensation paid with 1,012 1,647 6,088 6,980 Company common shares Non real estate depreciation and 186 238 875 1,023 amortization Amortization of deferred 807 819 3,349 3,496 financing costs Improvements to real estate (722) (1,093) (5,757) (4,426) Capitalized leasing (52) (362) (2,134) (1,143) commissions AFFO $ 45,080 $ 30,516 $ 152,631 $ 106,767 FFO attributable to common shares and OP units per $ 0.46 $ 0.38 $ 1.46 $ 1.48 share - diluted Normalized FFO per share - $ 0.57 $ 0.38 $ 1.96 $ 1.48 diluted AFFO per share - diluted $ 0.56 $ 0.37 $ 1.87 $ 1.29 Weighted average common shares and OP units 81,197,007 82,662,537 81,409,279 82,638,775 outstanding - diluted (1) Funds from operations, or FFO, is used by industry analysts and investors as a supplemental operating performance measure for REITs. We calculate 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 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. We also present 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. We use 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. We also believe that, as a widely recognized measure of the performance of equity REITs, FFO may be used by investors as a basis to compare our 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 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 effects and could materially impact our results from operations, the utility of FFO as a measure of our 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 our FFO. Therefore, we believe that in order to facilitate a clear understanding of our 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 our liquidity, nor is it indicative of funds available to meet our cash needs, including our ability to pay dividends or make distributions. We present FFO with adjustments to arrive at Normalized FFO. Normalized FFO is FFO attributable to common shares and units excluding gain or loss on early extinguishment of debt and gain or loss on derivative instruments. We also present FFO with supplemental adjustments to arrive at Adjusted FFO ("AFFO"). AFFO is Normalized FFO excluding straight-line revenue, compensation paid with Company common shares, below market lease amortization net of above market lease amortization, 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 our 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 our cash needs including our ability to pay dividends. In addition, AFFO may not be comparable to similarly titled measurements employed by other companies. We use 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) December31, December31, 2013 2012 ASSETS Income producing property: Land $ 75,956 $ 73,197 Buildings and improvements 2,420,986 2,315,499 2,496,942 2,388,696 Less: accumulated depreciation (413,394) (325,740) Net income producing property 2,083,548 2,062,956 Construction in progress and land held for 302,068 218,934 development Net real estate 2,385,616 2,281,890 Cash and cash equivalents 38,733 23,578 Rents and other receivables, net 12,674 3,840 Deferred rent, net 150,038 144,829 Lease contracts above market value, net 9,154 10,255 Deferred costs, net 39,866 35,670 Prepaid expenses and other assets 44,507 30,797 Total assets $ 2,680,588 $ 2,530,859 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Line of credit $ — $ 18,000 Mortgage notes payable 115,000 139,600 Unsecured term loan 154,000 — Unsecured notes payable 600,000 550,000 Accounts payable and accrued liabilities 23,566 22,280 Construction costs payable 45,444 6,334 Accrued interest payable 9,983 2,601 Dividend and distribution payable 25,971 22,177 Lease contracts below market value, net 10,530 14,022 Prepaid rents and other liabilities 56,576 35,524 Total liabilities 1,041,070 810,538 Redeemable noncontrolling interests – operating 387,244 453,889 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, 2013 and 2012 Series B cumulative redeemable perpetual preferred stock, 6,650,000 issued and 166,250 166,250 outstanding at December 31, 2013 and 2012 Common stock, $.001 par value, 250,000,000 shares authorized, 65,205,274 shares issued and outstanding at 65 63 December 31, 2013 and 63,340,929 shares issued and outstanding at December31, 2012 Additional paid in capital 900,959 915,119 Retained earnings — — Total stockholders' equity 1,252,274 1,266,432 Total liabilities and stockholders' equity $ 2,680,588 $ 2,530,859 DUPONT FABROS TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Year ended December 31, 2013 2012 Cash flow from operating activities Net income $ 53,605 $ 60,833 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 93,058 89,241 Loss on early extinguishment of debt 40,978 — Straight line rent, net of reserve (6,920) (17,967) Amortization of deferred financing costs 3,349 3,496 Amortization of lease contracts above and below market (2,391) (3,194) value Compensation paid with Company common shares 6,088 6,980 Changes in operating assets and liabilities Rents and other receivables (5,900) (2,452) Deferred costs (2,082) (1,278) Prepaid expenses and other assets (14,760) (5,854) Accounts payable and accrued liabilities 1,520 (1,112) Accrued interest payable 7,382 73 Prepaid rents and other liabilities 19,834 3,997 Net cash provided by operating activities 193,761 132,763 Cash flow from investing activities Investments in real estate – development (129,332) (94,753) Land acquisition costs (14,186) (3,830) Interest capitalized for real estate under development (3,774) (4,434) Improvements to real estate (5,757) (4,426) Additions to non-real estate property (71) (57) Net cash used in investing activities (153,120) (107,500) Cash flow from financing activities Line of credit: Proceeds 102,000 48,000 Repayments (120,000) (50,000) Mortgage notes payable: Proceeds 115,000 — Lump sum payoffs (138,300) — Repayments (1,300) (5,200) Unsecured term loan: Proceeds 154,000 — Unsecured notes payable: Proceeds 600,000 — Repayments (550,000) — Payments of financing costs (18,200) (2,109) Payments for early extinguishment of debt (32,544) — Issuance of preferred stock, net of offering costs — 62,685 Exercises of stock options 1,711 868 Common stock repurchases (37,792) — Dividends and distributions: Common shares (57,927) (34,112) Preferred shares (27,245) (26,006) Redeemable noncontrolling interests – operating (14,889) (10,213) partnership Net cash used in financing activities (25,486) (16,087) Net increase in cash and cash equivalents 15,155 9,176 Cash and cash equivalents, beginning 23,578 14,402 Cash and cash equivalents, ending $ 38,733 $ 23,578 Supplemental information: Cash paid for interest $ 42,835 $ 52,127 Deferred financing costs capitalized for real estate $ 226 $ 277 under development Construction costs payable capitalized for real estate $ 45,444 $ 6,334 under development Redemption of operating partnership units $ 75,600 $ 6,800 Adjustments to redeemable noncontrolling interests - $ 18,791 $ 2,830 operating partnership DUPONT FABROS TECHNOLOGY, INC. Operating Properties As of January 1, 2014 Gross Computer Critical % % Property PropertyLocation YearBuilt/ Building Room Load Leased Commenced Renovated Area(2) Square MW(3) (4) (5) Feet(2) Stabilized (1) ACC2 Ashburn,VA 2001/2005 87,000 53,000 10.4 100 % 100 % ACC3 Ashburn, VA 2001/2006 147,000 80,000 13.9 100 % 100 % ACC4 Ashburn, VA 2007 347,000 172,000 36.4 100 % 100 % ACC5 Ashburn, VA 2009-2010 360,000 176,000 36.4 98 % 98 % ACC6 Ashburn, VA 2011-2013 262,000 130,000 26.0 100 % 100 % CH1 ElkGroveVillage,IL 2008-2012 485,000 231,000 36.4 100 % 100 % NJ1 Piscataway, NJ 2010 180,000 88,000 18.2 52 % 52 % Phase I SC1 Santa Clara, CA 2011 180,000 88,000 18.2 100 % 100 % Phase I VA3 Reston,VA 2003 256,000 147,000 13.0 71 % 71 % VA4 Bristow,VA 2005 230,000 90,000 9.6 100 % 100 % Total Operating Properties 2,534,000 1,255,000 218.5 94 % 94 % (1) Stabilized operating properties are either 85% or more leased and commenced or have been in service for 24 months or greater. (2) Gross building area is the entire building area, including computer room square footage (the portion of gross building area where our customers' computer servers are located), common areas, areas controlled by us (such as the mechanical, telecommunications and utility rooms) and, in some facilities, individual office and storage space leased on an as available basis to our customers. (3) Critical load (also referred to as IT load or load used by customers' servers or related equipment) is the power available for exclusive use by customers expressed in terms of megawatt, or MW, or kilowatt, or kW (1MW is equal to 1,000 kW). (4) Percentage leased is expressed as a percentage of critical load that is subject to an executed lease totaling 205.3 MW. Leases executed as of January 1, 2014 represent $275 million of base rent on a GAAP basis and $283 million of base rent on a cash basis over the next twelve months. Both amounts include $17 million of revenue from management fees over the next twelve months. (5) Percentage commenced is expressed as a percentage of critical load where the lease has commenced under generally accepted accounting principles. DUPONT FABROS TECHNOLOGY, INC. Lease Expirations As of January 1, 2014 The following table sets forth a summary schedule of lease expirations at our operating properties for each of the ten calendar years beginning with 2014. The information set forth in the table below assumes that customers exercise no renewal options and takes into account customers' early termination options in determining the life of their leases under GAAP. Computer Year of Number RoomSquare Feet %ofLeased TotalkW %of Lease ofLeases of Expiring Computer ofExpiring %of Annualized Expiration Expiring(1) CommencedLeases Room Square Commenced LeasedkW BaseRent(3) (inthousands) Feet Leases (2) (2) 2014 2 8 0.7 % 1,705 0.8 % 1.1 % 2015 4 70 6.0 % 13,812 6.7 % 6.7 % 2016 4 32 2.7 % 4,686 2.3 % 2.4 % 2017 13 96 8.2 % 17,619 8.6 % 8.7 % 2018 19 215 18.3 % 39,298 19.1 % 18.4 % 2019 13 171 14.5 % 31,337 15.3 % 14.8 % 2020 10 106 9.0 % 16,496 8.0 % 8.7 % 2021 9 159 13.5 % 27,682 13.5 % 13.8 % 2022 6 75 6.4 % 12,812 6.1 % 7.2 % 2023 4 48 4.1 % 6,475 3.2 % 2.7 % After 2023 12 196 16.6 % 33,425 16.4 % 15.5 % Total 96 1,176 100 % 205,347 100 % 100 % (1) Represents 33 customers with 96 lease expiration dates. Top four customers represent 62% of annualized base rent. (2) Computer room square footage is that portion of gross building area where customers locate their computer servers. One MW is equal to 1,000 kW. (3) Annualized base rent represents the monthly contractual base rent (defined as cash base rent before abatements) multiplied by 12 for commenced leases totaling 205.3 MW as of January 1, 2014. DUPONT FABROS TECHNOLOGY, INC. Development Projects As of December 31, 2013 ($ in thousands) Computer Construction Gross Room Critical Estimated inProgress& % Property PropertyLocation Building Square Load Total LandHeldfor Pre- Area(1) Feet(2) MW(3) Cost (4) Development leased (5) Current Development Projects SC1 $105,000 Phase Santa Clara, CA 90,000 44,000 9.1 - $ 64,972 50 % IIA $115,000 ACC7 Ashburn, VA 126,000 70,000 11.9 85,000 68,402 0 % Phase I - 90,000 216,000 114,000 21.0 190,000 - 133,374 205,000 Future Development Projects/Phases SC1 46,000 - Phase SantaClara,CA 90,000 44,000 9.1 50,000 44,610 IIB ACC7 78,000 - Phases Ashburn, VA 320,000 176,000 29.7 82,000 59,705 II to IV NJ1 Piscataway, NJ 180,000 88,000 18.2 39,212 39,212 Phase II $163,212 590,000 308,000 57.0 - 143,527 $171,212 Land Held for Development ACC8 Ashburn, VA 100,000 50,000 10.4 3,855 CH2 Elk Grove 338,000 167,000 25.6 15,702 Village, IL SC2 Santa Clara, CA 200,000 125,000 26.0 5,610 638,000 342,000 62.0 25,167 Total 1,444,000 764,000 140.0 $ 302,068 (1) Gross building area is the entire building area, including computer room square footage (the portion of gross building area where our customers' computer servers are located), common areas, areas controlled by us (such as the mechanical, telecommunications and utility rooms) and, in some facilities, individual office and storage space leased on an as available basis to our customers. The amount listed for CH2 is an estimate. (2) Computer room square footage is that portion of gross building area where customers locate their computer servers. The amount listed for CH2 is an estimate. (3) Critical load (also referred to as IT load or load used by customers' servers or related equipment) is the power available for exclusive use by customers expressed in terms of MW or kW (1MW is equal to 1,000 kW). The amount listed for CH2 is an estimate. (4) Current development projects include land, capitalization for construction and development and capitalized operating carrying costs, as applicable, upon completion. Capitalized interest is excluded. Future development projects/phases other than SC1 Phase IIB include land, shell and underground work through Phase I opening only. SC1 Phase IIB also includes a portion of the electrical and mechanical infrastructure. (5) Amount capitalized as of December31, 2013. Future development projects/phases other than SC1 Phase IIB include land, shell and underground work through Phase I opening only. SC1 Phase IIB also includes a portion of the electrical and mechanical infrastructure. DUPONT FABROS TECHNOLOGY, INC. Debt Summary as of December 31, 2013 ($ in thousands) December31, 2013 Maturities Amounts %ofTotal Rates (years) Secured $ 115,000 13 % 2.0 % 4.2 Unsecured 754,000 87 % 5.1 % 7.2 Total $ 869,000 100 % 4.7 % 6.8 Fixed Rate Debt: Unsecured Notes due 2021 $ 600,000 69 % 5.9 % 7.7 FixedRateDebt 600,000 69 % 5.9 % 7.7 Floating Rate Debt: Unsecured Credit Facility — — — 2.2 Unsecured Term Loan 154,000 18 % 1.9 % 5.1 ACC3 Term Loan 115,000 13 % 2.0 % 4.2 Floating Rate Debt 269,000 31 % 2.0 % 4.7 Total $ 869,000 100 % 4.7 % 6.8 Note: We capitalized interest and deferred financing cost amortization of $2.4 million and $4.0 million during the three months and year ended December31, 2013, respectively. Debt Maturity as of December 31, 2013 ($ in thousands) Year FixedRate FloatingRate Total %ofTotal Rates 2014 — — — — — 2015 — — — — — 2016 — 3,750 (2) 3,750 0.4 % 2.0 % 2017 — 8,750 (2) 8,750 1.0 % 2.0 % 2018 — 102,500 (2) 102,500 11.8 % 2.0 % 2019 — 154,000 (3) 154,000 17.7 % 1.9 % 2020 — — — — — 2021 600,000 (1) — 600,000 69.1 % 5.9 % Total $ 600,000 $ 269,000 $ 869,000 100 % 4.7 % (1) The 5.875% Unsecured Notes are due September 15, 2021. (2) The ACC3 Term Loan matures on March27, 2018 with no extension option. Quarterly principal payments of $1.25 million begin on April 1, 2016, increase to $2.5 million on April 1, 2017 and continue through maturity. (3) The $250 million Unsecured Term Loan matures on February 15, 2019 with no extension option. In January 2014, we drew the remaining $96.0 million. DUPONT FABROS TECHNOLOGY, INC. Selected Unsecured Debt Metrics^(1) 12/31/13 12/31/12 Interest Coverage Ratio (not less than 2.0) 5.8 4.0 Total Debt to Gross Asset Value (not to exceed 60%) 28.2% 24.9% Secured Debt to Total Assets (not to exceed 40%) 3.7% 4.9% Total Unsecured Assets to Unsecured Debt (not less than 364.8% 334.3% 150%) (1) These selected metrics relate to DuPont Fabros Technology, LP's outstanding unsecured notes. DuPont Fabros Technology, Inc. is the general partner of DuPont Fabros Technology, LP. Capital Structure as of December 31, 2013 (in thousands except per share data) Line of Credit $ — Mortgage Notes Payable 115,000 Unsecured Term Loan 154,000 Unsecured Notes 600,000 Total Debt 869,000 27.0 % Common Shares 81 % 65,205 Operating Partnership 19 % 15,672 ("OP") Units Total Shares and Units 100 % 80,877 Common Share Price at $ 24.71 December 31, 2013 Common Share and OP Unit $ 1,998,471 Capitalization Preferred Stock ($25 per share liquidation 351,250 preference) Total Equity 2,349,721 73.0 % Total Market $ 3,218,721 100.0 % Capitalization DUPONT FABROS TECHNOLOGY, INC. Common Share and OP Unit Weighted Average Amounts Outstanding Q4 2013 Q4 2012 2013 2012 Weighted Average Amounts Outstanding for EPS Purposes: Common Shares - basic 64,685,508 63,000,839 64,645,316 62,866,189 Shares issued from assumed conversion of: - Restricted Shares 87,317 115,880 77,999 126,534 - Stock Options 666,602 716,932 723,917 761,283 - Performance Units — — 26,807 — Total Common Shares - 65,439,427 63,833,651 65,474,039 63,754,006 diluted Weighted Average Amounts Outstanding for FFO, Normalized FFO and AFFO Purposes: Common Shares - basic 64,685,508 63,000,839 64,645,316 62,866,189 OP Units - basic 15,757,580 18,828,886 15,935,240 18,884,769 Total Common Shares and OP 80,443,088 81,829,725 80,580,556 81,750,958 Units Shares and OP Units issued from assumed conversion of: - Restricted Shares 87,317 115,880 77,999 126,534 - Stock Options 666,602 716,932 723,917 761,283 - Performance Units — — 26,807 — Total Common Shares and 81,197,007 82,662,537 81,409,279 82,638,775 Units - diluted Period Ending Amounts Outstanding: Common Shares 65,205,274 OP Units 15,671,537 Total Common Shares and 80,876,811 Units DUPONT FABROS TECHNOLOGY, INC. 2014 Guidance The earnings guidance/projections provided below are based on current expectations and are forward-looking. Expected Q1 2014 Expected 2014 per share per share Net income per common share and unit - $0.27 to $0.29 $1.09 to $1.19 diluted Depreciation and amortization, net 0.29 1.19 FFO per share - diluted (1) $0.56 to $0.58 $2.28 to $2.38 Loss on early extinguishment of debt — — Normalized FFO per share - diluted (1) $0.56 to $0.58 $2.28 to $2.38 2014 Debt Assumptions Weighted average debt outstanding $977.0 million Weighted average interest rate (one month LIBOR average 4.59% 0.36%) Total interest costs $44.8 million Amortization of deferred financing costs 3.7 million Interest expense capitalized (8.8) million Deferred financing costs amortization capitalized (0.6) million Total interest expense after capitalization $39.1 million 2014 Other Guidance Assumptions Total revenues $400 to $415 million Base rent (included in total revenues) $280 to $290 million Straight-line revenues (included in base rent) (2) $(4) to $(9) million General and administrative expense $17 to $19 million Investments in real estate - development (3) $225 to $275 million Improvements to real estate excluding development $4 million Preferred stock dividends $27 million Annualized common stock dividend $1.40 per share Weighted average common shares and OP units - diluted 81 million Common share repurchase No amounts budgeted Acquisitions of income producing properties No amounts budgeted (1) For information regarding FFO and Normalized FFO, see "Reconciliations of Net Income to FFO, Normalized FFO and AFFO" on page 6 of this earnings release. (2) Straight-line revenues are projected to reduce total revenues in 2014 as cash rents are projected to be higher than GAAP rents. (3) Represents cash spend expected in 2014 for the ACC7, SC1 Phase IIA and CH2 developments. The CH2 development is forecasted to begin in the second quarter of 2014 with an in service date in the first half of 2015. Note: This press release supplement contains certain non-GAAP financial measures that we believe are helpful in understanding our business, as further discussed within this press release supplement. These financial measures, which include Funds From Operations, Normalized Funds From Operations, Adjusted Funds From Operations, Funds From Operations per share, Normalized Funds From Operations per share and Adjusted Funds From Operations per share, should not be considered as an alternative to net income, earnings per share or any other GAAP measurement of performance or as an alternative to cash flows from operating, investing or financing activities. Furthermore, these non-GAAP financial measures are not intended to be a measure of cash flow or liquidity. Information included in this supplemental package is unaudited. SOURCE DuPont Fabros Technology, Inc. Website: http://www.dft.com Contact: Investor Relations Contacts: Jeffrey H. Foster, Chief Financial Officer, firstname.lastname@example.org, (202) 478-2333, or Christopher A. Warnke, Manager, Investor Relations, email@example.com, (202) 478-2330
DuPont Fabros Technology, Inc. Reports Fourth Quarter 2013 Results
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