Mark Wilson, CPA: understanding Digital Realty Trust, Inc.(NYSE:DLR) Digital Realty Trust, L.P.

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Mark Wilson, CPA: understanding Digital Realty Trust, Inc. (NYSE:DLR) Digital Realty Trust, L.P.

Transcript of Mark Wilson, CPA: understanding Digital Realty Trust, Inc.(NYSE:DLR) Digital Realty Trust, L.P.

Page 1: Mark Wilson, CPA: understanding Digital Realty Trust, Inc.(NYSE:DLR) Digital Realty Trust, L.P.

Mark Wilson, CPA:

understanding

Digital Realty Trust, Inc.(NYSE:DLR)Digital Realty Trust, L.P.

Page 2: Mark Wilson, CPA: understanding Digital Realty Trust, Inc.(NYSE:DLR) Digital Realty Trust, L.P.

Overview:

• NYSE Traded REIT with a $8B market cap; largest wholesale provider of datacenters in the world. 102 Properties/19.1M Sq.Ft.

Page 3: Mark Wilson, CPA: understanding Digital Realty Trust, Inc.(NYSE:DLR) Digital Realty Trust, L.P.

Typical UPREIT Structure:

Page 4: Mark Wilson, CPA: understanding Digital Realty Trust, Inc.(NYSE:DLR) Digital Realty Trust, L.P.

Market Leader:

Page 5: Mark Wilson, CPA: understanding Digital Realty Trust, Inc.(NYSE:DLR) Digital Realty Trust, L.P.

Digital Realty Tenant Value Proposition

99.999% Uptime

Delivery and After Sale Support

Power Purchasing Program to

lower operating

costs

Diverse Product Line

and Data Center

Solutions

Locations in 31 Markets

Worldwide

Energy Efficient Facility Layouts

Page 6: Mark Wilson, CPA: understanding Digital Realty Trust, Inc.(NYSE:DLR) Digital Realty Trust, L.P.

• The data center industry uses the measurement PUE, or power usage effectiveness, to measure efficiency. A PUE of 2.0 means that for every watt of IT power, an additional watt is consumed to cool and distribute power to the IT equipment. An ideal PUE would be 1.0.

• Jonathan Koomey, a researcher and consulting professor at Stanford University, estimates typical 2011 PUE between 1.83 and 1.92. The higher number represents the average data center PUE reported in the EPA's Energy Star program. The lower value represents the average PUE reported in the Uptime Institute's 2010 PUE survey.

Power Usage Effectiveness

Page 7: Mark Wilson, CPA: understanding Digital Realty Trust, Inc.(NYSE:DLR) Digital Realty Trust, L.P.

View this video to learn about Digital Realty’s commitment to after sale support and tools such as their propriety Critical Facilities Management® Software and Power VU Software.

View this video to learn about Digital Realty’s integration of PUE into their design, metering and commissioning process.

Digital Realty and PUE

Page 8: Mark Wilson, CPA: understanding Digital Realty Trust, Inc.(NYSE:DLR) Digital Realty Trust, L.P.

Datacenter Sustainable Development Goals:

“Good” BREEAM “Platinum” LEEDS

Page 9: Mark Wilson, CPA: understanding Digital Realty Trust, Inc.(NYSE:DLR) Digital Realty Trust, L.P.

Green IT and Efficiency

Digital Realty puts green IT into action…

1Use of Capital to deliver higher

returns 2Operations to

reduce operating costs

3Value to customers and Investors

Page 10: Mark Wilson, CPA: understanding Digital Realty Trust, Inc.(NYSE:DLR) Digital Realty Trust, L.P.

Expanding the Accounting Team

Senior Director of AccountingGOALS AND EXPECTATIONS

Be a critical contributor to a highly motivated and skilled senior team in the Accounting organization Utilize prior experience and expertise to continually seek improvement opportunities for an already sound internal

control system Ensure high quality and accurate f inancial statements and related data are produced timely Evaluate, develop and execute a reporting process improvement plan to produce insightful and meaningful reports for

senior executives Provide cross-training opportunities and critical redundancy among the senior team in the Accounting organization

Page 11: Mark Wilson, CPA: understanding Digital Realty Trust, Inc.(NYSE:DLR) Digital Realty Trust, L.P.

Senior Director of Accounting – Responsibilities

Page 12: Mark Wilson, CPA: understanding Digital Realty Trust, Inc.(NYSE:DLR) Digital Realty Trust, L.P.

Accounting and Reporting – Key Deliverables

• Quarterly Reporting:• Form 10-Q• Supplemental Operating and Financial Data• News Release

• Annual Reporting:• Form 10-K (Large Accelerated Filer)• Annual Report• Interactive Annual Report (XBRL)• Proxy

• Periodic:• Form 8-K (Current Report)• Form 4 (Ownership changes for Insiders and Directors)• ‘33 Act filings, such as Prospectus (for Cumulative Redeemable

Preferred Stock)

Page 13: Mark Wilson, CPA: understanding Digital Realty Trust, Inc.(NYSE:DLR) Digital Realty Trust, L.P.

Relevant and applicable GAAP:

Digital Realty Trust has a variety of complex accounting and reporting areas which necessitate experience and expertise in the following areas, including, but not limited to:

• ASC 840 Leases• ASC 830 Foreign Currency Matters• ASC 820 Fair Value Measurements and Disclosures• ASC 323 Investments – Equity Method and Joint Ventures• ASC 410 Asset Retirement and Environmental Obligations• ASC 450 Contingencies• ASC 850 Related Party Disclosures• ASC 230 Statement of Cash Flows• ASC 718 Compensation – Stock Compensation• ASC 260 Earnings Per Share• ASC 220 Comprehensive Income• ASC 815 Derivatives and Hedging• ASC 350 Intangibles – Goodwill and Other• ASC 360 Property, Plant and Equipment• ASC 974 Real Estate – Real Estate Investment Trusts• ASC 855 Subsequent Events

Page 14: Mark Wilson, CPA: understanding Digital Realty Trust, Inc.(NYSE:DLR) Digital Realty Trust, L.P.

Accounting and Reporting – non GAAP metrics:

Digital Realty Trust has a variety of non-GAAP metrics which it uses to report on and disclose different aspects and metrics of its operations, including, but not limited to:

• FFO• Adjusted FFO• Core FFO• EBITDA• Adjusted EBITDA• Enterprise Value• Same store occupancy• Cash interest expense• Annualized base rent• NOI

Page 15: Mark Wilson, CPA: understanding Digital Realty Trust, Inc.(NYSE:DLR) Digital Realty Trust, L.P.

Portfolio Data:

Digital Realty Trust tracks and reports the following operational data on a quarterly basis:

• Property Occupancy % and Annualized Rents• Major Tenants (top 20) and related data• Lease expirations and distribution• Lease expirations by product type:

• Turnkey Datacenters• Power Base Buildings• Colocation• Non Technical

• Leasing activity- rates, TI’s, commissions• CapEx – recurring and nonrecurring• Construction in Progress – by market, product type, and with related ecc’s

(estimated costs to complete)

Page 16: Mark Wilson, CPA: understanding Digital Realty Trust, Inc.(NYSE:DLR) Digital Realty Trust, L.P.

Bill Stein. CFO and CIO.

Edward Sham. SVP and Controller. Chief Accounting Officer.

The Team – Key Accounting and Finance Leadership

Page 17: Mark Wilson, CPA: understanding Digital Realty Trust, Inc.(NYSE:DLR) Digital Realty Trust, L.P.

Mark Wilson. Sr. Director of Accounting Candidate.

CPA. 30+ years of diverse finance, tax & accounting experience; 20+ years in a CFO role. SEC and REIT experience in complex reporting environments.Tactical skills and strategic vision.

Worth an interview; call today!(323) 360-5936 or email:[email protected]

The Team

Page 18: Mark Wilson, CPA: understanding Digital Realty Trust, Inc.(NYSE:DLR) Digital Realty Trust, L.P.

End of Presentation

understanding

Digital Realty Trust, Inc.(NYSE:DLR)Digital Realty Trust, L.P.