DuPont Fabros Technology, Inc. Reports Second Quarter 2014 Results

      DuPont Fabros Technology, Inc. Reports Second Quarter 2014 Results

Revenues increase 11%; Adjusted FFO per share increases 48%

Midpoint of Normalized FFO guidance range increased $0.05 per share

PR Newswire

WASHINGTON, July 24, 2014

WASHINGTON, July24, 2014 /PRNewswire/ --DuPont Fabros Technology, Inc.
(NYSE: DFT) is reporting results for the quarter ended June30, 2014. All per
share results are reported on a fully diluted basis.

DuPont Fabros Technology, Inc. (NYSE: DFT) is a real estate investment trust
(REIT) and leading owner, developer, operator and manager of wholesale data
centers. The Company's data centers are highly specialized, secure,
network-neutral facilities used primarily by national and international
Internet and enterprise companies to house, power and cool the computer
servers that support many of their most critical business processes. DuPont
Fabros Technology, Inc. is headquartered in Washington, DC. For more
information, please visit www.dft.com

Highlights

  oAs of June 30, 2014, our operating portfolio was 96% leased and commenced
    as measured by computer room square feet ("CRSF") and 95% leased and
    commenced as measured by critical load (in megawatts, or "MW").
  oQuarterly Highlights:

       oNormalized Funds from Operations ("Normalized FFO") of $0.61 per
         share representing a 30% increase over the prior year quarter.
       oAdjusted Funds from Operations ("AFFO") per share of $0.62
         representing a 48% increase over the prior year quarter.
       oPlaced SC1 Phase IIA into service. This development totals 9.10 MW
         and 44,000 CRSF.
       oLowered interest rates on ACC3 Term Loan and Unsecured Credit
         Facility. Increased Unsecured Credit Facility from $400 million to
         $560 million.
       oExecuted three leases totaling 7.10 MW and 47,166 CRSF.
       oCommenced three leases totaling 9.65 MW and 60,900 CRSF.

  oSubsequent to the Second Quarter 2014:

       oPlaced ACC7 Phase I into service 17% pre-leased on a critical load
         basis. This development totals 11.89 MW and 70,000 CRSF.
       oExecuted one lease totaling 1.28 MW and 5,370 CRSF at NJ1. This
         lease is expected to commence in the fourth quarter of 2014. NJ1
         Phase I is now 59% leased on a critical load basis and 70% leased on
         a CRSF basis.
       oLowered interest rate on $250 million Unsecured Term Loan.

Hossein Fateh, President and Chief Executive Officer, said, "Increasing levels
of customer demand drove strong leasing results in the quarter - both in DFT's
existing data centers and in the pre-leasing of our development sites. We are
equipped to capture more demand with the 21 new megawatts of development we've
placed in service in the vibrant data center hubs of Northern Virginia and
Santa Clara. Leasing momentum and our financial results allow us to
confidently increase the mid-point of our 2014 Normalized FFO guidance by
$0.05 per share."

Second Quarter 2014 Results

For the quarter ended June30, 2014, earnings were $0.32 per share compared to
earnings of $0.18 per share for the second quarter of 2013, an increase of
78%. Revenues increased 11%, or $10.4 million, to $102.0 million for the
second quarter of 2014 over the second quarter of 2013. The increase in
revenues was primarily due to new leases commencing.

Normalized FFO for the quarter ended June30, 2014 was $0.61 per share
compared to $0.47 per share for the second quarter of 2013. The increase of
$0.14 per share, or 30%, from the prior year quarter was primarily due to the
following:

  oHigher operating income excluding depreciation of $0.08 per share, and
  oLower interest expense of $0.06 per share due to lower interest rates and
    higher capitalized interest.

Normalized FFO of $0.61 per share for the quarter ended June30, 2014 exceeded
the upper end of our guidance range by $0.01 per share due to lower operating
and general and administrative expenses.

First Half 2014 Results

For the six months ended June30, 2014, earnings were $0.63 per share compared
to earnings of $0.30 per share for the first half of 2013, an increase of
110%. Revenues increased 14%, or $24.7 million, to $204.0 million for the
first six months of 2014 over the year ago period. The increase in revenues
was primarily due to new leases commencing.

Normalized FFO for the six months ended June30, 2014 was $1.20 per share
compared to $0.89 per share for the first half of 2013. The increase of $0.31
per share, or 35%, from the year ago period was primarily due to the
following:

  oHigher operating income excluding depreciation of $0.19 per share, and
  oLower interest expense of $0.12 per share due to lower interest rates and
    higher capitalized interest.

Portfolio Update

During the second quarter 2014, we:

  oExecuted and commenced two leases with a weighted average lease term of
    5.1 years totaling 5.10 MW and 38,989 CRSF.

       oOne lease at VA3 totaling 2.60 MW and 27,952 CRSF.
       oOne lease at SC1 Phase IIA totaling 2.50 MW and 11,037 CRSF.

  oExecuted one pre-lease at ACC7 Phase I totaling 2.00 MW and 8,177 CRSF
    with a lease term of 12.0 years. This lease is expected to commence later
    this quarter.
  oIn addition to the SC1 Phase IIA lease noted above, commenced another
    lease totaling 4.55 MW and 21,911 CRSF at SC1 Phase IIA.

Year to date, we:

  oSigned five leases with a weighted average lease term of 6.5 years
    totaling 8.86 MW and 58,117 CRSF that are expected to generate
    approximately $8.9 million of annualized GAAP base rent revenue.
  oExtended the maturity of three leases totaling 3.01 MW and 23,072 CRSF by
    a weighted average of 1.8 years with a weighted average decrease to cash
    base rent of 0.7% and a weighted average increase to GAAP base rent of
    6.3%.
  oCommenced five leases totaling 10.57 MW and 69,281 CRSF.

Development Update

We placed ACC7 Phase I (11.89 MW) and SC1 Phase IIA (9.10 MW) into service.
SC1 Phase IIA was 77% leased and ACC7 Phase I was 17% leased at their
respective placed into service dates.

We have begun development of SC1 Phase IIB (9.10 MW) and CH2 Phase I (7.10
MW). We anticipate SC1 Phase IIB will be placed into service late first
quarter of 2015 and CH2 Phase I will be placed into service in the third
quarter of 2015.

Balance Sheet and Liquidity

In May 2014, we exercised the accordion feature on our Unsecured Credit
Facility, increasing its total capacity from $400 million to $560 million. We
also amended the facility to expand the accordion feature to provide us with
the option to increase the total commitment to $800 million. The interest rate
was reduced 30 basis points from LIBOR + 1.85% to LIBOR + 1.55%, and the
unused fee decreased 10 basis points. The facility's maturity date has been
extended from March 2016 to May 2018 and still includes a one-year extension
option.

In May 2014, we also executed an amendment that reduced the interest rate on
our $115 million ACC3 Term loan 30 basis points from LIBOR + 1.85% to LIBOR +
1.55%.

In July 2014, we executed an amendment to our $250 million Unsecured Term Loan
that reduced the interest rate from LIBOR + 1.75% to LIBOR + 1.50% and
extended the maturity date from February 2019 to July 2019.

We have a common stock repurchase program that allows for purchases up to
$122.2 million that expires on December 31, 2014. In the first half of 2014,
we did not repurchase any shares, and $122.2 million is still available for
purchase.

As of June30, 2014, we had $56 million of cash and $560 million of available
capacity under our revolving credit facility.

Dividend

Our second quarter 2014 dividend of $0.35 per share was paid on July 15,
2014. The anticipated 2014 annualized dividend of $1.40 per share represents
an estimated Normalized FFO payout ratio of 58% at the midpoint of our current
2014 guidance.

Third Quarter and Full Year 2014 Guidance

Our Normalized FFO guidance range is $0.60 to $0.62 per share for the third
quarter of 2014.

Our 2014 Normalized FFO guidance range was increased to $2.38 to $2.44 per
share as compared to prior guidance of $2.32 to $2.40 per share. 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 $0.05 per share increase in the midpoint of guidance is primarily due to:

  oHigher operating income excluding depreciation of $0.04 per share
    primarily from leases executed since our last earnings call and lower
    general and administrative expenses.
  oLower interest expense of $0.01 per share due to lowering the interest
    rate on our Unsecured Term Loan, as described above, and lower projected
    borrowings for 2014.

Second Quarter 2014 Conference Call and Webcast Information

We will host a conference call to discuss these results today, Thursday, July
24, 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 1-877-300-9306
(domestic) or 1-412-902-6613 (international). A replay will be available for
seven days by dialing 1-877-344-7529 (domestic) or 1-412-317-0088
(international) using passcode 10048361. The webcast will be archived on our
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 11 data centers
are located in four major U.S. markets, which total 2.75 million gross square
feet and 240 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 third
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, 2013 and the quarterly
report for the period ended March 31, 2014 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
(unaudited and in thousands except share and per share data)
                        Three months ended June 30,  Six months ended June 30,
                        2014            2013         2014          2013
Revenues:
Base rent               $   70,455      $  65,438    $   139,659   $  129,570
Recoveries from tenants 29,964          25,319       61,653        48,009
Other revenues          1,531           807          2,725         1,744
Total revenues          101,950         91,564       204,037       179,323
Expenses:
Property operating      27,782          24,767       57,877        48,279
costs
Real estate taxes and   3,411           3,673        6,878         7,314
insurance
Depreciation and        23,603          23,196       46,872        46,235
amortization
General and             3,868           4,332        8,108         8,882
administrative
Other expenses          1,599           585          2,472         1,357
Total expenses          60,263          56,553       122,207       112,067
Operating income        41,687          35,011       81,830        67,256
Interest income         39              16           107           53
Interest:
Expense incurred        (7,707)         (12,505)     (15,531)      (25,442)
Amortization of
deferred financing      (723)           (775)        (1,466)       (1,693)
costs
Loss on early           (338)           —            (338)         (1,700)
extinguishment of debt
Net income              32,958          21,747       64,602        38,474
Net income attributable
to redeemable
noncontrolling          (5,026)         (2,965)      (9,814)       (4,938)
interests
– operating partnership
Net income attributable
to controlling          27,932          18,782       54,788        33,536
interests
Preferred stock         (6,811)         (6,811)      (13,622)      (13,622)
dividends
Net income attributable $   21,121      $  11,971    $   41,166    $  19,914
to common shares
Earnings per share –
basic:
Net income attributable $   0.32        $  0.19      $   0.63      $  0.31
to common shares
Weighted average common 65,486,202      64,380,566   65,417,615    64,733,309
shares outstanding
Earnings per share –
diluted:
Net income attributable $   0.32        $  0.18      $   0.63      $  0.30
to common shares
Weighted average common 65,951,113      65,188,907   65,887,897    65,556,852
shares outstanding
Dividends declared per  $   0.35        $  0.25      $   0.70      $  0.45
common share





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                Six months ended

                 June 30,                          June 30,
                 2014             2013             2014            2013
Net income       $   32,958       $   21,747       $   64,602      $  38,474
Depreciation and 23,603           23,196           46,872          46,235
amortization
Less: Non real
estate           (185)            (229)            (357)           (471)
depreciation and
amortization
FFO              56,376           44,714           111,117         84,238
Preferred stock  (6,811)          (6,811)          (13,622)        (13,622)
dividends
FFO attributable
to common shares 49,565           37,903           97,495          70,616
and OP units
Loss on early
extinguishment   338              —                338             1,700
of debt
Normalized FFO   $   49,903       $   37,903       $   97,833      $  72,316
Straight-line
revenues, net of 1,305            (2,047)          2,016           (6,654)
reserve
Amortization of
lease contracts  (598)            (597)            (1,197)         (1,195)
above and below
market value
Compensation
paid with        1,507            1,612            3,100           3,515
Company common
shares
Non real estate
depreciation and 185              229              357             471
amortization
Amortization of
deferred         723              775              1,466           1,693
financing costs
Improvements to  (595)            (3,548)          (1,020)         (4,357)
real estate
Capitalized
leasing          (1,550)          (56)             (1,577)         (168)
commissions
AFFO             $   50,880       $   34,271       $   100,978     $  65,621
FFO attributable
to common shares
and OP units per $   0.61         $   0.47         $   1.20        $  0.87
share
- diluted
Normalized FFO
per share -      $   0.61         $   0.47         $   1.20        $  0.89
diluted
AFFO per share - $   0.62         $   0.42         $   1.24        $  0.80
diluted
Weighted average
common shares
and OP units     81,529,141       81,119,817       81,480,797      81,605,473
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)
                                                    June 30,      December 31,
                                                    2014         2013
                                                    (unaudited)
ASSETS
Income producing property:
Land                                                $ 81,006      $ 75,956
Buildings and improvements                          2,524,016     2,420,986
                                                    2,605,022     2,496,942
Less: accumulated depreciation                      (457,696)     (413,394)
Net income producing property                       2,147,326     2,083,548
Construction in progress and land held for          310,935       302,068
development
Net real estate                                     2,458,261     2,385,616
Cash and cash equivalents                           56,141        38,733
Rents and other receivables, net                    10,443        12,674
Deferred rent, net                                  148,022       150,038
Lease contracts above market value, net             8,604         9,154
Deferred costs, net                                 40,140        39,866
Prepaid expenses and other assets                   49,659        44,507
Total assets                                        $ 2,771,270   $ 2,680,588
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Line of credit                                      $ —           $ —
Mortgage notes payable                              115,000       115,000
Unsecured term loan                                 250,000       154,000
Unsecured notes payable                             600,000       600,000
Accounts payable and accrued liabilities            24,089        23,566
Construction costs payable                          25,032        45,444
Accrued interest payable                            10,588        9,983
Dividend and distribution payable                   34,243        25,971
Lease contracts below market value, net             8,783         10,530
Prepaid rents and other liabilities                 64,058        56,576
Total liabilities                                   1,131,793     1,041,070
Redeemable noncontrolling interests – operating     419,801       387,244
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 outstanding at June 30, 185,000       185,000
2014 and December 31, 2013
Series B cumulative redeemable perpetual preferred
stock, 6,650,000 issued and outstanding at June 30, 166,250       166,250
2014 and December 31, 2013
Common stock, $.001 par value, 250,000,000 shares
authorized, 65,831,672 shares issued and            66            65
outstanding at June 30, 2014 and 65,205,274 shares
issued and outstanding at December 31, 2013
Additional paid in capital                          868,360       900,959
Retained earnings                                   —             —
Total stockholders' equity                          1,219,676     1,252,274
Total liabilities and stockholders' equity          $ 2,771,270   $ 2,680,588





DUPONT FABROS TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited and in thousands)
                                                     Six months ended June 30,
                                                     2014           2013
Cash flow from operating activities
Net income                                           $   64,602     $  38,474
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation and amortization                        46,872         46,235
Loss on early extinguishment of debt                 338            1,700
Straight line revenues, net of reserve               2,016          (6,654)
Amortization of deferred financing costs             1,466          1,693
Amortization of lease contracts above and below      (1,197)        (1,195)
market value
Compensation paid with Company common shares         3,100          3,515
Changes in operating assets and liabilities
Rents and other receivables                          2,231          (3,219)
Deferred costs                                       (442)          (205)
Prepaid expenses and other assets                    (6,229)        (10,650)
Accounts payable and accrued liabilities             (994)          2,260
Accrued interest payable                             605            (254)
Prepaid rents and other liabilities                  6,260          14,087
Net cash provided by operating activities            118,628        85,787
Cash flow from investing activities
Investments in real estate – development             (128,068)      (20,516)
Interest capitalized for real estate under           (6,163)        (504)
development
Improvements to real estate                          (1,020)        (4,357)
Additions to non-real estate property                (283)          (24)
Net cash used in investing activities                (135,534)      (25,401)
Cash flow from financing activities
Line of credit:
Proceeds                                             —              72,000
Repayments                                           —              (30,000)
Mortgage notes payable:
Proceeds                                             —              115,000
Lump sum payoffs                                     —              (138,300)
Repayments                                           —              (1,300)
Unsecured term loan:
Proceeds                                             96,000         —
Payments of financing costs                          (2,816)        (3,036)
Exercises of stock options                           3,457          —
Common stock repurchases                             —              (37,792)
Dividends and distributions:
Common shares                                        (39,333)       (25,597)
Preferred shares                                     (13,622)       (13,622)
Redeemable noncontrolling interests – operating      (9,372)        (6,944)
partnership
Net cash provided by (used in) financing activities  34,314         (69,591)
Net increase (decrease) in cash and cash equivalents 17,408         (9,205)
Cash and cash equivalents, beginning                 38,733         23,578
Cash and cash equivalents, ending                    $   56,141     $  14,373
Supplemental information:
Cash paid for interest                               $   21,089     $  26,200
Deferred financing costs capitalized for real estate $   354        $  34
under development
Construction costs payable capitalized for real      $   25,032     $  5,762
estate under development
Redemption of operating partnership units            $   2,400      $  69,900
Adjustments to redeemable noncontrolling interests - $   36,047     $  2,111
operating partnership





DUPONT FABROS TECHNOLOGY, INC.
Operating Properties
As of July 1, 2014
                                                          Computer                                 Critical
                                              Gross       Room        CRSF %  CRSF %     Critical  Load %    Critical
Property  PropertyLocation      YearBuilt/  Building    Square      Leased  Commenced  Load                Load %
                                 Renovated    Area(2)    Feet        (3)     (4)        MW(5)    Leased    Commenced
                                                          ("CRSF")                                 (3)       (4)
                                                          (2)
Stabilized (1)
ACC2      Ashburn,VA            2001/2005    87,000      53,000      100  %  100   %    10.4      100   %   100   %
ACC3      Ashburn, VA            2001/2006    147,000     80,000      100  %  100   %    13.9      100   %   100   %
ACC4      Ashburn, VA            2007         347,000     172,000     100  %  100   %    36.4      100   %   100   %
ACC5      Ashburn, VA            2009-2010    360,000     176,000     98   %  98    %    36.4      98    %   98    %
ACC6      Ashburn, VA            2011-2013    262,000     130,000     100  %  100   %    26.0      100   %   100   %
CH1       ElkGroveVillage,IL  2008-2012    485,000     231,000     100  %  100   %    36.4      100   %   100   %
NJ1
Phase I   Piscataway, NJ         2010         180,000     88,000      64   %  64    %    18.2      52    %   52    %
(6)
SC1       Santa Clara, CA        2011         180,000     88,000      100  %  100   %    18.2      100   %   100   %
Phase I
VA3       Reston,VA             2003         256,000     147,000     94   %  94    %    13.0      95    %   95    %
VA4       Bristow,VA            2005         230,000     90,000      100  %  100   %    9.6       100   %   100   %
Subtotal – stabilized                         2,534,000   1,255,000   97   %  97    %    218.5     95    %   95    %
Completed, not Stabilized
SC1
Phase     Santa Clara, CA        2014         90,000      44,000      75   %  75    %    9.1       77    %   77    %
IIA
Subtotal – non-stabilized                     90,000      44,000      75   %  75    %    9.1       77    %   77    %
Total Operating Properties                    2,624,000   1,299,000   96   %  96    %    227.6     95    %   95    %

(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 CRSF (the
    portion of gross building area where our customers' computer servers are
(2) 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.
    Percentage leased is expressed as a percentage of CRSF or critical load,
    as applicable, that is subject to an executed lease. Leases executed as of
(3) July 1, 2014 represent $286 million of base rent on a GAAP basis and $300
    million of base rent on a cash basis over the next twelve months. Both
    amounts include $18 million of revenue from management fees over the next
    twelve months.
    Percentage commenced is expressed as a percentage of CRSF or critical
(4) load, as applicable, where the lease has commenced under generally
    accepted accounting principles.
    Critical load (also referred to as IT load or load used by customers'
(5) servers or related equipment) is the power available for exclusive use by
    customers expressed in terms of megawatt, or MW, or kilowatt, or kW (1 MW
    is equal to 1,000 kW).
(6) As of July 23, 2014, NJ1 Phase I was 59% leased on a critical load basis
    and 70% leased on a CRSF basis.





DUPONT FABROS TECHNOLOGY, INC.
Lease Expirations
As of July 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.
                          CRSF of
Year of     Number        Expiring        %of    TotalkW                %of
Lease       ofLeases     Commenced       Leased  ofExpiring  %of       Annualized
Expiration  Expiring(1)  Leases          CRSF    Commenced    LeasedkW  BaseRent(3)
                          (inthousands)          Leases (2)
                          (2)
2014 (4)    1             5               0.4  %  1,137        0.5    %   0.7      %
2015        4             70              5.6  %  13,812       6.4    %   6.4      %
2016        4             32              2.6  %  4,686        2.2    %   2.4      %
2017        14            102             8.2  %  18,106       8.5    %   8.4      %
2018        20            203             16.3 %  38,566       17.9   %   17.8     %
2019        16            247             19.9 %  42,287       19.6   %   18.1     %
2020        10            106             8.5  %  16,496       7.7    %   8.4      %
2021        9             159             12.8 %  27,682       12.8   %   13.2     %
2022        6             75              6.0  %  12,812       5.9    %   6.9      %
2023        4             48              3.9  %  6,475        3.0    %   2.7      %
After 2023  12            196             15.8 %  33,425       15.5   %   15.0     %
Total       100           1,243           100  %  215,484      100    %   100      %

(1) Represents 34 customers with 100 lease expiration dates. Top four
    customers represent 62% of annualized base rent.
(2) CRSF is that portion of gross building area where customers 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 for commenced leases as of July 1, 2014.
(4) In July 2014, this lease was renewed for two years and now expires in
    2016.







DUPONT FABROS TECHNOLOGY, INC.
Development Projects
As of June 30, 2014
($ in thousands)
                                                                  Construction           Critical
          Property     Gross                 Critical  Estimated  inProgress&  CRSF %  Load %
Property  Location     Building    CRSF (2)  Load      Total      LandHeldfor  Pre-    Pre-
                       Area(1)              MW(3)    Cost (4)   Development    leased  leased
                                                                  (5)
Current Development
Projects
ACC7                                                   $90,000
Phase I   Ashburn, VA  126,000     70,000    11.9      -         $  90,589      12  %   17   %
(6)                                                    $95,000
SC1       Santa                                        107,000
Phase     Clara, CA    90,000      44,000    9.1       -         63,636         —   %   —    %
IIB                                                    113,000
CH2       Elk Grove                                     70,000
Phase I   Village, IL  93,000      46,000    7.1       -       6,853          —   %   —    %
                                                       80,000
                                                       267,000
                       309,000     160,000   28.1      -         161,078
                                                       288,000
Future Development
Projects/Phases
ACC7                                                    87,000
Phases    Ashburn, VA  320,000     176,000   29.7      -        86,544
II to IV                                               93,000
CH2
Phases    Elk Grove    243,000     120,000   18.5      120,000 -  14,542
II to     Village, IL                                  130,000
III
NJ1       Piscataway,  180,000     88,000    18.2      39,212     39,212
Phase II  NJ
                                                       $246,212
                       743,000     384,000   66.4      -          140,298
                                                       $262,212
Land Held for
Development
ACC8      Ashburn, VA  100,000     50,000    10.4                 4,069
SC2       Santa        200,000     125,000   26.0                 5,490
          Clara, CA
                       300,000     175,000   36.4                 9,559
Total                  1,352,000   719,000   130.9                $  310,935

    Gross building area is the entire building area, including CRSF (the
    portion of gross building area where our customers' computer servers are
    located), common areas, areas controlled by us (such as the mechanical,
(1) telecommunications and utility rooms) and, in some facilities, individual
    office and storage space leased on an as available basis to our customers.
    The respective amounts listed for each of the "Land Held for Development"
    sites are estimates.
    CRSF is that portion of gross building area where customers locate their
(2) computer servers. The respective amounts listed for each of the "Land Held
    for Development" sites are estimates.
    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
(3) customers expressed in terms of MW or kW (1 MW is equal to 1,000 kW). The
    respective amounts listed for each of the "Land Held for Development"
    sites are estimates.
    Current development projects include land, capitalization for construction
(4) and development and capitalized interest and operating carrying costs, as
    applicable, upon completion. Future development projects/phases include
    land, shell and underground work through Phase I opening only.
(5) Amount capitalized as of June 30, 2014. Future development projects/phases
    include land, shell and underground work through Phase I opening only.
(6) ACC7 Phase I was placed into service in July 2014.





DUPONT FABROS TECHNOLOGY, INC.
Debt Summary as of June 30, 2014
($ in thousands)
                          June 30, 2014
                                                         Maturities
                          Amounts     %ofTotal  Rates
                                                         (years)
Secured                   $ 115,000   12     %    1.7 %  3.7
Unsecured                 850,000     88     %    4.7 %  6.5
Total                     $ 965,000   100    %    4.3 %  6.1
Fixed Rate Debt:
Unsecured Notes due 2021  $ 600,000   62     %    5.9 %  7.2
FixedRateDebt           600,000     62     %    5.9 %  7.2
Floating Rate Debt:
Unsecured Credit Facility —           —           —      3.9
Unsecured Term Loan       250,000     26     %    1.9 %  4.6
ACC3 Term Loan            115,000     12     %    1.7 %  3.7
Floating Rate Debt        365,000     38     %    1.8 %  4.4
Total                     $ 965,000   100    %    4.3 %  6.1

      We capitalized interest and deferred financing cost amortization of $3.4
Note: million and $6.5 million during the three and six months ended June 30,
      2014, respectively.





Debt Maturity as of June 30, 2014
($ in thousands)
Year   FixedRate      FloatingRate      Total       %ofTotal  Rates
2014   —               —                  —           —           —
2015   —               —                  —           —           —
2016   —               3,750         (2)  3,750       0.4    %    1.7 %
2017   —               8,750         (2)  8,750       0.9    %    1.7 %
2018   —               102,500       (2)  102,500     10.6   %    1.7 %
2019   —               250,000       (3)  250,000     25.9   %    1.9 %
2020   —               —                  —           —           —
2021   600,000    (1)  —                  600,000     62.2   %    5.9 %
Total  $ 600,000       $  365,000         $ 965,000   100    %    4.3 %

(1) The 5.875% Unsecured Notes mature on September 15, 2021.
    The ACC3 Term Loan matures on March 27, 2018 with no extension option.
(2) 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 Unsecured Term Loan matures on July 21, 2019 with no extension option.





DUPONT FABROS TECHNOLOGY, INC.
Selected Unsecured Debt Metrics^(1)
                                                             6/30/14  12/31/13
Interest Coverage Ratio (not less than 2.0)                  5.9      5.8
Total Debt to Gross Asset Value (not to exceed 60%)          30.0%    28.2%
Secured Debt to Total Assets (not to exceed 40%)             3.6%     3.7%
Total Unsecured Assets to Unsecured Debt (not less than      331.5%   364.8%
150%)

    These selected metrics relate to DuPont Fabros Technology, LP's
(1) outstanding unsecured notes. DuPont Fabros Technology, Inc. is the general
    partner of DuPont Fabros Technology, LP.





Capital Structure as of June 30, 2014
(in thousands except per share data)
Line of Credit                                           $ —
Mortgage Notes Payable                                   115,000
Unsecured Term Loan                                      250,000
Unsecured Notes                                          600,000
Total Debt                                               965,000       27.5  %
Common Shares             81  %  65,832
Operating Partnership     19  %  15,571
("OP") Units
Total Shares and Units    100 %  81,403
Common Share Price at            $ 26.96
June 30, 2014
Common Share and OP Unit                   $ 2,194,625
Capitalization
Preferred Stock ($25 per
share liquidation                          351,250
preference)
Total Equity                                             2,545,875     72.5  %
Total Market                                             $ 3,510,875   100.0 %
Capitalization



DUPONT FABROS TECHNOLOGY, INC.
Common Share and OP Unit
Weighted Average Amounts Outstanding
                                                      YTD          YTD
                            Q2 2014      Q2 2013
                                                      Q2 2014      Q2 2013
Weighted Average Amounts
Outstanding for EPS
Purposes:
Common Shares - basic       65,486,202   64,380,566   65,417,615   64,733,309
Shares issued from assumed
conversion of:
- Restricted Shares         107,236      51,954       103,570      75,837
- Stock Options             357,675      756,387      366,712      747,706
                                                      
- Performance Units         —            —                         —
                                                      —
Total Common Shares -       65,951,113   65,188,907   65,887,897   65,556,852
diluted
Weighted Average Amounts
Outstanding for FFO,

Normalized FFO and AFFO
Purposes:
Common Shares - basic       65,486,202   64,380,566   65,417,615   64,733,309
OP Units - basic            15,578,028   15,930,910   15,592,900   16,048,621
Total Common Shares and OP  81,064,230   80,311,476   81,010,515   80,781,930
Units
Shares and OP Units issued
from assumed conversion of:
- Restricted Shares         107,236      51,954       103,570      75,837
- Stock Options             357,675      756,387      366,712      747,706
                                                      
- Performance Units         —            —                         —
                                                      —
Total Common Shares and     81,529,141   81,119,817   81,480,797   81,605,473
Units - diluted
Period Ending Amounts
Outstanding:
Common Shares               65,831,672
OP Units                    15,571,237
Total Common Shares and     81,402,909
Units





DUPONT FABROS TECHNOLOGY, INC.
2014 Guidance
The earnings guidance/projections provided below are based on current
expectations and are forward-looking.
                                          Expected Q3 2014    Expected 2014

                                          per share           per share
Net income per common share and unit -     $0.30 to $0.32    $1.19 to $1.25
diluted
Depreciation and amortization, net        0.30                1.19
FFO per share - diluted (1)                $0.60 to $0.62    $2.38 to $2.44
Loss on early extinguishment of debt      —                   —
Normalized FFO per share - diluted (1)     $0.60 to $0.62    $2.38 to $2.44





2014 Debt Assumptions
Weighted average debt outstanding                $976.0 million
Weighted average interest rate (one month LIBOR 4.45%
average 0.16%)
Total interest costs                             $43.4 million
Amortization of deferred financing costs         3.7 million
 Interest expense capitalized               (9.7) million
 Deferred financing costs amortization      (0.6) million
capitalized
Total interest expense after capitalization      $36.8 million
2014 Other Guidance Assumptions
Total revenues                                   $410 to $415 million
Base rent (included in total revenues)           $284 to $288 million
Straight-line revenues (included in base rent)   $(6) to $(8) million
(2)
General and administrative expense               $16 to $17 million
Investments in real estate - development (3)     $270 to $290 million
Improvements to real estate excluding            $4 million
development
Preferred stock dividends                        $27 million
Annualized common stock dividend                 $1.40 per share
Weighted average common shares and OP units -    81 million
diluted
Common share repurchase                         No amounts budgeted
Acquisitions of income producing properties     No amounts budgeted

    For information regarding FFO and Normalized FFO, see "Reconciliations of
(1) 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 Phase I, SC1 Phase
    IIA, SC1 Phase IIB and CH2 Phase I developments.

Logo- http://photos.prnewswire.com/prnh/20120104/MM29780LOGO





SOURCE DuPont Fabros Technology, Inc.

Website: http://www.dft.com
Contact: Investor Relations Contacts: Jeffrey H. Foster, Chief Financial
Officer, jfoster@dft.com, (202) 478-2333, or Christopher A. Warnke, Manager,
Investor Relations, investorrelations@dft.com, (202) 478-2330
 
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