Digital Realty Trust, Inc. Announces Initial 2010 Guidance

SAN FRANCISCO, Nov. 9 /PRNewswire-FirstCall/ -- Digital Realty Trust, Inc. (NYSE: DLR), the world's largest wholesale datacenter provider, today announced guidance information for the year ending December 31, 2010.

FFO per diluted share and unit for the year ending December 31, 2010 is projected to be between $3.13 and $3.27. This guidance represents expected FFO growth of 7.9% to 13.5% over the 2009 revised FFO range of $2.88 to $2.90 per diluted share and unit. A reconciliation of the range of 2010 projected net income to projected FFO follows:

                                                                  (Low - High)
    Net income available to common stockholders per
     diluted share                                                $0.79 - 0.93
        Add:
    Real estate depreciation and amortization as adjusted
     for noncontrolling interest                                     $2.50
        Less:
    Dilutive impact of convertible stock and exchangeable
     debentures                                                     $(0.16)

      Projected FFO per diluted share                             $3.13 - 3.27
     

The 2010 guidance provided by Digital Realty Trust in this press release is based on the following additional assumptions as of November 9, 2009:

• Acquisitions of income producing properties totaling $250 million at average cap rate of 10%;
• Commencement of leases which will contribute $80 - $90 million of GAAP rental revenue on an annualized basis;
• POD Architecture Services® revenue recognized between $7 - $10 million;
• Development and redevelopment capital expenditures of $345 - $375 million;
• Portfolio level capital expenditures of $50 million;
• Total G&A of $48 million; and
• Additional non-cash interest expense of approximately $4.2 million related to the adoption of accounting guidance for certain convertible debt instruments that may be settled in cash (or other assets) on conversion.
  

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.

Safe Harbor Statement
This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to 2009 and 2010 FFO guidance and assumptions, the acquisitions expectations, lease commencement expectations, POD Architecture Services® revenue expectations; development and redevelopment capital expenditure expectations, portfolio level capital expenditure expectations, total G&A expectations, additional non-cash interest expense of related to the adoption of accounting guidance for certain convertible debt instruments expectations, net income available to common stockholders per diluted share expectations, real estate depreciation and amortization expectations, and the impact of convertible stock and exchangeable debentures expectations. Such forward looking statements include statements related to the Company's expected future financial and other results, and the assumptions underlying such results, as well as statements related to the company's future acquisitions, leasing and financing plans. These risks and uncertainties include the impact of the current deterioration in global economic and market conditions; adverse economic or real estate developments in our markets or the industry sectors that we sell to; decreases in information technology spending; our dependence upon significant tenants; bankruptcy or insolvency of a major tenant or a significant number of smaller tenants; downturn of local economic conditions in our geographic markets; our inability to comply with the rules and regulations applicable to public companies or to manage our growth effectively; difficulty acquiring or operating properties in foreign jurisdictions; defaults on or non-renewal of leases by tenants; increased interest rates and operating costs; our failure to obtain necessary outside financing; restrictions on our ability to engage in certain business activities; risks related to joint venture investments; decreased rental rates or increased vacancy rates; inability to successfully develop and lease new properties and space held for redevelopment; our inability to generate expected revenue from our POD Architecture Services®; capital expenditure requirements in excess of our expectations; increased G&A expenditures; difficulties in identifying properties to acquire and completing acquisitions; increased competition or available supply of data center space; our failure to successfully operate acquired properties; our inability to acquire off-market properties; delays or unexpected costs in development or redevelopment of properties; our failure to maintain our status as a REIT; possible adverse changes to tax laws; environmental uncertainties and risks related to natural disasters; financial market fluctuations; changes in foreign currency exchange rates; changes in foreign laws and regulations, including those related to taxation and real estate ownership and operation; and 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 subsequent reports on Form 10-Q and Form 8-K. 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.

Management Note Regarding FFO Presentation
Digital Realty Trust calculates Funds from Operations, or FFO, in accordance with the standards established by the National Association of Real Estate Investment Trusts, or NAREIT. FFO represents net income (loss) available to common stockholders and unitholders (computed in accordance with U.S. GAAP), excluding gains (or losses) from sales of property, real estate related depreciation and amortization (excluding amortization of deferred financing costs) and after adjustments for unconsolidated partnerships and joint ventures. Management uses FFO as a supplemental performance measure because, in excluding real estate related depreciation and amortization and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. Digital Realty Trust also believes that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare our operating performance with that of other REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions, nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our financial condition and results from operations, the utility of FFO as a measure of our performance is limited. Other REITs may not calculate FFO in accordance with the NAREIT definition and, accordingly, our FFO may not be comparable to such other REITs' FFO. Accordingly, FFO should be considered only as a supplement to net income as a measure of our performance.

    Contact Information:

    A. William Stein                            Pamela Matthews
    Chief Financial Officer and                 Director of Investor Relations
     Chief Investment Officer                   Digital Realty Trust, Inc.
    Digital Realty Trust, Inc.                  (415) 738-6532
    (415) 738-6520