Digital Realty Trust Acquires Two Fully Leased Datacenter Facilities in Silicon Valley

SAN FRANCISCO, Nov. 3 /PRNewswire-FirstCall/ -- Digital Realty Trust, Inc. (NYSE: DLR), the world's largest wholesale datacenter provider, announced today that it acquired two fully leased datacenter facilities, 1350 Duane Avenue, and 3080 Raymond Street, located in Santa Clara, California. The purchase price was $90.5 million. The Company expects the blended cash cap rate for this acquisition to be consistent with its 2009 guidance, as discussed on its last earnings call.

In addition, the Company assumed a $52.8 million mortgage upon completion of the transaction. The loan currently bears interest at 5.423% and is interest-only through the initial maturity date of October 1, 2012, excluding extension options.

"This acquisition illustrates the continued execution of our strategy to grow FFO by investing in income producing facilities at attractive risk-adjusted returns," commented Scott Peterson, Senior Vice President of Acquisitions for Digital Realty Trust. "The buildings are strategically located near our existing Santa Clara facilities and should benefit from our operational efficiencies. They are situated on a 5.56 acre site across from a Silicon Valley Power substation with 17.2 MVA of current power capacity expandable to 22.5 MVA."

The larger building, 1350 Duane Avenue, consists of 160,000 square feet of highly improved datacenter space. The entire building is leased on a triple net basis to a major telecommunications firm. In 2004 the tenant subleased the building to a leading colocation and IT services provider. The second property, 3080 Raymond Avenue, totals 25,000 square feet and is leased on a triple net basis to a local provider of Internet services and applications to business throughout California.

Digital Realty Trust Turn-Key Datacenter® facilities provide state-of-the-art environments for supporting mission critical infrastructure, with advanced cooling, power, redundancy, and sustainability features to ensure that critical applications are available while optimizing energy efficiency. Digital Realty Trust's Turn-Key Datacenters® are scalable from hundreds of kilowatts of IT load to megawatts of IT load and are located in markets throughout North America and Europe. Each Turn-Key Datacenter® facility is physically secure and features a state-of-the-art power and cooling architecture that has been optimized for green operation. Every Turn-Key Datacenter® is built using the company's proprietary POD Architecture® and uses metered power to ensure that clients pay only for the power that they use.

About Digital Realty Trust, Inc.
Digital Realty Trust, Inc. owns, acquires, redevelops, develops and manages technology-related real estate. The Company is focused on providing Turn-Key Datacenter® and Powered Base Building® datacenter solutions for domestic and international tenants across a variety of industry verticals ranging from information technology and Internet enterprises, to manufacturing and financial services. Digital Realty Trust's 79 properties, excluding one property held as an investment in an unconsolidated joint venture, contain applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise datacenter tenants. Comprising approximately 14.0 million rentable square feet as of November 3, 2009, including 1.9 million square feet of space held for redevelopment, Digital Realty Trust's portfolio is located in 27 markets throughout North America and Europe. For additional information, please visit Digital Realty Trust's website at http://www.digitalrealtytrust.com.

Forward-Looking 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 expected cash cap rates and access to additional power. These risks and uncertainties include the impact of the current deterioration in the global economy; future income, expenses, including property taxes, and capital expenditures for the properties being acquired being consistent with our due diligence and underwriting expectations; bankruptcy or insolvency of one or more tenants at the properties being acquired; the downturn of economic conditions in our geographic markets, including the markets where the properties being acquired are located; 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; decreases in real estate valuations and resulting impairment charges; our dependence upon significant tenants; defaults on or non-renewal of leases by tenants; our failure to obtain necessary debt and equity financing for refinancing; increased interest rates and operating costs; our failure to repay debt when due or our breach of covenants or other terms contained in our loan documents; financial market fluctuations; our ability to manage our growth effectively; our failure to successfully operate acquired or redeveloped properties; delays or unexpected costs in development or redevelopment of properties; decreased rental rates or increased vacancy rates; increased competition or available supply of data center space; inability to successfully redevelop and lease new properties and space held for redevelopment; difficulties in identifying properties to acquire and completing acquisitions; our inability to acquire off-market properties; our inability to comply with the rules and regulations applicable to public 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; changes in foreign laws and regulations, including those related to taxation and real estate ownership and operation; 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 United States Securities and Exchange Commission, including the Company's annual report on Form 10-K for the year ended December 31, 2008 and the Company's quarterly reports on Form 10-Q for the quarters ended March 31, 2009 and June 30, 2009. 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 A. Matthews
    Chief Financial Officer and    Director of Investor Relations
    Chief Investment Officer       Digital Realty Trust, Inc.
    Digital Realty Trust, Inc.     +1 415-738-6500
    +1 415-738-6500