Digital Realty Trust (DLR) 8-K Foundation of the Digital World

Investor Meetings

September 2007

Foundation of the Digital World

Exhibit 99.1

1

Forward Looking Statements

The

information

included

in

this

presentation

contains

forward-looking

statements.

Such

statements

are

based

on

management’s

beliefs

and

assumptions

made

based

on

information

currently

available

to

management.

Such

forward

looking

statements

include

statements

and

projections

related

to

growth

in

the

Software

as

a

Service

(SaaS)

and

e-

commerce

market,

the

digital

communication

and

distribution

market,

and

the

data

storage

market,

online

advertising,

the

market

effects

of

regulatory

requirements,

the

disaster

recovery

market,

estimates

of

sufficiency

of

power

and

cooling

in

existing

datacenters,

the

replacement

cost

of

our

assets,

redevelopment

costs

in

our

buildings,

and

time

periods

to

stabilization

of

our

development

space,

the

effect

new

leases

will

have

on

our

rental

revenues

and

results

of

operations,

lease

expiration

rates,

the

effect

of

leasing

and

acquisition

on

our

FFO,

and

annualized

GAAP

rent.

Such

statements

are

subject

to

risks,

uncertainties

and

assumptions

and

are

not

guarantees

of

future

performance

and

may

be

affected

by

known

and

unknown

risks,

trends,

uncertainties

and

factors

that

are

beyond

our

control

that

may

cause

actual

results

to

vary

materially.

Some

of

the

risks

and

uncertainties

include,

among

others,

the

following:

adverse

economic

or

real

estate

developments

in

our

markets

or

the

technology

industry;

general

and

local

economic

conditions;

defaults

on

or

non-

renewal

of

leases

by

tenants;

increased

interest

rates

and

operating

costs;

our

inability

to

manage

domestic

and

international

growth

effectively;

difficulty

acquiring

or

operating

properties

in

foreign

jurisdictions,

changes

in

foreign

laws

and

regulations,

including

those

related

to

taxation

and

real

estate

ownership

and

operation,

increased

interest

rates

and

operating

costs;

inability

to

acquire

new

properties

(including

those

we

are

in

the

process

of

acquiring);

our

failure

to

obtain

necessary

outside

financing;

increased

construction

costs;

decreased

rental

rates

or

increased

vacancy

rates;

difficulties

in

identifying

properties

to

acquire

and

completing

acquisitions

at

acceptable

return

levels;

our

failure

to

successfully

operate

acquired

properties

and

operations;

failure

of

acquired

properties

to

perform

as

expected;

our

failure

to

successfully

redevelop

properties

acquired

for

that

purpose

or

unexpected

costs

related

to

redevelopment;

our

failure

to

maintain

our

status

as

a

REIT;

possible

adverse

changes

to

tax

law;

environmental

uncertainties

and

risks

related

to

natural

disasters;

environmental

or

contamination

issues

at

our

buildings;

financial

market

fluctuations;

changes

in

foreign

currency

exchange

rates;

risks

of

operating

in

foreign

countries;

and

changes

in

real

estate

and

zoning

laws

and

increases

in

real

property

tax

rates.

The

risks

described

above

are

not

exhaustive,

and

additional

factors

could

adversely

affect

our

business

and

financial

performance,

including

those

discussed

in

our

annual

report

on

Form

10-K

for

the

year

ended

December

31,

2006

and

subsequent

filings

with

the

Securities

and

Exchange

Commission.

We

expressly

disclaim

any

responsibility

to

update

forward-looking

statements,

whether

as

a

result

of

new

information,

future

events

or

otherwise.

2

Digital Realty Trust Overview

Tenants consist of leading global

companies diversified across various

industries

Own

66

properties

(1)

comprising

11.9

million rentable sq ft, which includes

1.8 million rentable sq ft of space held

for

redevelopment

(2)

Portfolio occupancy of 94.6% and

“same

store”

occupancy

of

93.9%

(3)

Assets strategically located in 26 top

technology markets throughout North

America and Europe

DLR is a leading institutional owner focused on mission critical

technology properties throughout North America and Europe.

11830 Webb Chapel Road

Dallas, TX

(1)

Excludes one property held in an unconsolidated joint venture.

(2)

Includes property acquisitions as of September 11, 2007.

(3)

Occupancy

is

as

of

June

30,

2007,

net

of

redevelopment

space.

Same

store

occupancy

includes

properties

acquired

before

December

31,

2005,

excluding

properties sold in 2006 and 2007.

3

DLR Investment Highlights

Specialized focus in dynamic and

growing sector

High quality portfolio that is difficult to

replicate

Proven track record of creating

shareholder value

Conservative and flexible capital

structure

Industry leading domestic and

international datacenter development

and critical facilities management

capabilities

2323 Bryan Street

Dallas, TX

4

DLR Properties Feature Advanced Technical Systems

Between $500 and $1000 psf typically invested in DLR buildings, creating a barrier to

exit for tenants and discouraging speculative new supply.

Power backup/redundancy

Power management/conversion

Precision air cooling/handling

Systems and security controls

5

DLR Presence in 26 Top Markets

11,895,000

87

66

Total

866,000

10

9

International

11,029,000

77

57

Domestic

Total Rentable

Square Feet

# of Buildings

# of Properties

(1)

(1)

Includes properties owned as of September 11, 2007, excluding one property held in an unconsolidated joint venture.

6

DLR Properties Serve a Variety of Industry Verticals

DLR offers corporate enterprise tenants, IT service providers, and network

carriers flexible, cost-effective and reliable datacenter solutions.

Technology

Internet

Enterprise

Communications

Manufacturing/

Energy

Financial

7

Communications

Services

29%

IT Services and

Internet Enterprise

43%

Professional &

Financial Services

9%

Other Technology

8%

Non-Technology

11%

DLR Tenant Distribution

(1)

(1) Calculation

based

on

average

annualized

GAAP

rents

using

in

place

leases

as

of

June

30,

2007,

excluding

one

property

held

in

an

unconsolidated

joint

venture.

8

DLR is Unique in its Focus on Technology Properties

Corporate Datacenters

–

Storage/server intensive buildings

–

Provide a secure 24x7 environment

for the storage and processing of

mission-critical electronic

information

–

Used to house primary IT

operations: transaction processing,

data storage, disaster recovery,

CRM and email

Internet Gateways

–

Internet and telecom network

intensive buildings

–

Serve as the hub for Internet and

data communications within and

between major metropolitan areas

–

Market-dominant position in their

respective MSAs

–

Frequently serve as a super-

regional connection point with

multiple anchor tenants

(1) Calculation based on average annualized GAAP rents using in place leases as of June 30, 2007.

Portfolio Distribution

(1)

Internet Gateway

37%

Non-Technical

10%

Corporate Datacenter

53%

9

Strong Trends Drive Sustained Demand for DLR Space

Other Growth Drivers

By 2008, 50% of existing

corporate data centers will

have insufficient power and

cooling capacity to meet the

demands of high-density

equipment

(4)

Increased federal regulatory

and legislative requirements for

business continuity and

records retention

Disaster Recovery initiatives

prioritized as a result of

Hurricanes Katrina and Rita

HIPAA patient records security

and retention regulations

Significant growth in online

advertising: up 30% in 2006;

expected 19% increase in

2007

(5)

U.S. e-commerce spending

increased 24% during 2006

(6)

(1)

(2)

(3)

Primary Drivers –

Estimated Annual Growth Rates

(1) Gartner

(May

2006)

estimated

growth

in

Software

as

a

Service

(SaaS)

from

2006

to

2009.

(2) IDC estimate of US VOIP subscriber growth from 2005 to 2009.

(3) Wall Street Journal estimate of corporate data storage capacity growth, October 2005.

(4) Gartner

25th

Annual

Datacenter

Conference

2006.

(5) eMarketer.com, February 2007.

(6) comScore

Networks, 2007.

73%

60%

57%

20

40

60

80

SaaS

Digital

Communication

& Distribution

Data Storage

100%

0%

10

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1Q02

4Q02

3Q03

2Q04

1Q05

4Q05

3Q06

2Q07

$0

$100

$200

$300

$400

$500

$600

$700

Source:

Estimates

based

on

reported

cabinet

(net

sellable

and

billing),

square

feet

and

revenue

data

from

Equinix

and

Savvis

as

per

press

releases,

SEC

filings,

research

reports

and

internal

DLR

estimates

as

of

June

30,

2007.

Assumes

35

sq

ft

per

cabinet

throughout

period

if

square

feet

not

reported. 

Equinix and Savvis, two leading managed service providers that “resell”

space

leased directly from DLR, are experiencing strong growth in revenues and utilization.

Bill Rates and Utilization Rates are Escalating

Revenue PSF

Utilization Rate

Revenue PSF (Utilized)

$518 psf

Revenue PSF (Total)

$148 psf

Utilization Rate

29%

$628 psf

$558 psf

79%

11

DLR Offers Sustained Growth

Acquisitions

Leasing of Turn-Key

Datacenter™

and

Powered Base Building™

Space

Redevelopment Inventory

DLR growth is derived from three sources.

12

$847.2

$1,044.3

$1,137.4

$1,413.4

$1,508.5

$1,593.6

$1,648.2

$1,794.4

$2,066.2

$2,298.7

$2,457.5

$2,535.5

$750

$1,250

$1,750

$2,250

$2,750

9/30/2004

12/31/2004

3/31/2005

6/30/2005

9/30/2005

12/31/2005

3/31/2006

6/30/2006

9/30/2006

12/31/2006

3/31/2007

6/30/2007

Proven Track Record: Strong Acquisition Activity

Since its IPO, DLR has more than doubled its total assets through

property acquisitions.

Total Undepreciated

Assets

($000s)

13

2005 Through YTD 2007 Acquisitions

Acquired 45+ properties

(1)

totaling over $1.3 billion

Added approximately 7.3 million square feet to total portfolio, including

approximately 1.8 million square feet of redevelopment inventory

New markets include:

–

Philadelphia

–

St. Paul

–

Chicago

–

Charlotte

–

Amsterdam, Netherlands

–

Geneva, Switzerland

–

Northern Virginia

–

Austin

–

Dublin, Ireland

–

Toronto, Canada

–

Houston

–

Seattle

–

Paris, France

–

St. Louis

Chicago, Illinois

Paris, France

(1)

Includes

one

property

held

as

an

investment

in

an

unconsolidated

joint

venture.

14

(1)

Net rentable square feet figures excludes space held for redevelopment.

(2)

A leasehold interest consisting of two suites in 111 8th

Ave. (NY) acquired from NYC Connect.

(3)

Loudoun Exchange Portfolio consists of 43881, 43831 & 43791 Devin Shafron Drive (VA).

(4)

9.4 acre development site in suburban London, England with planning permission for a datacenter facility.

DLR has acquired approximately $1.3 billion in new properties since 2005.

2007 Acquisition Activity

Property

Metropolitan Area

Purchase Price

(in millions)

Total Rentable

Square Feet

Total Net

Rentable

Square Feet

Total Square

Feet Held for

Redevelopment

Percentage of

Net Rentable

Square Feet

Occupied

(1)

21110 Ridgetop

Northern Virginia

$17.0

135,513

135,513

-

100%

3011 Lafayette Street

Silicon Valley

$13.6

90,780

-

90,780

-

444470 Chilum Place

Northern Virginia

$42.5

95,440

95,440

-

100%

111 Eighth Avenue

(2)

New York City

$24.5

33,700

33,700

-

91%

Devon Shafron Drive

(3)

Northern Virginia

$62.5

402,071

137,071

265,000

40%

Mundells Roundabout

(4)

London, England

$31.4

-

-

-

-

900 Walnut & 210 Tucker

St. Louis, MI

$53.0

310,400

249,003

61,397

100%

1 Savvis Parkway

St. Louis, MI

$27.7

156,000

156,000

-

100%

1500 Space Park Drive

Silicon Valley

$4.5

50,000

-

50,000

-

YTD 2007

$276.7

1,273,904

806,727

467,177

15

Leasing Drives Internal Growth

DLR commenced 211 leases during 2006, contributing approximately

$30.0 million in annualized GAAP rent.

(1)

(1)

GAAP rental revenues include total rent for both renewals and expansions.

(2)

Excludes leases for parking garages and rooftops.

$22.2 million

$53.00

419,000

48

Total

$0.5 million

$19.00

27,000

14

Non Technical

(2)

$8.4 million

$27.50

304,000

8

Powered Base Building™

$13.3 million

$151.00

88,000

26

Turn-Key Datacenter™

Annualized

GAAP Rent

Annualized GAAP

Rent PSF

Total SF

Leased

# of

Leases

Type of Space

YTD through June 30, 2007, DLR signed leases for 359,000 sf of space,

including 114,600 sf of Turn-Key Datacenter™,

185,600 sf of Powered Base

Building™, and 58,800 sf feet of non technical space, representing annualized

GAAP rent of $26.6 million.

Leases Commenced YTD through June 30, 2007:

16

Same Store Growth

(1)

54,000

56,000

58,000

60,000

62,000

64,000

66,000

68,000

70,000

Jun-06

Sep-06

Dec-06

Mar-07

Jun-07

($000)

(1)

Same store properties were acquired before December 31, 2005, excluding properties sold in 2006 and 2007.

(2)

Quarterly operating revenue includes rental and tenant reimbursement revenue.

(3)

Calculation

based

on

reported

2Q07

operating

revenue

of

$68.8M

less

$4.3M

straight

line

rent

and

less

$0.7M

for

below/above

rent

amortization.

Second

quarter

2007

same

store

cash

revenue

was

$63.8

million

(3)

16%

Year

over

Year

Increase

in

Same

Store

Quarterly

Operating

Revenue

(2)

17

Case Studies:  DLR’s Value-add Leasing

(1)  Calculation based on IPO date of November 2004 and actual annualized net operating income (NOI) as of June 30, 2007. See page 30 for a discussion of NOI.

350 East Cermak Road

1100 Space Park Drive

200 Paul Avenue

300 Boulevard East

Property Name

Location

Acquisition / IPO

Date

% Change in NOI from later

of Acquisition or IPO

(1)

Run Rate NOI

200 Paul Avenue

San Francisco, CA

Nov-04

60.0%

16,991,253

$  

1100 Space Park Drive

Santa Clara, CA

Nov-04

95.1%

6,791,971

$    

350 East Cermak

Road

Chicago, IL

May-05

56.4%

20,025,157

$  

300 Boulevard East

Weehawken, NJ

Nov-04

92.5%

11,950,874

$  

600 West 7th Street

Los Angeles, CA

Nov-04

27.6%

9,548,871

$    

18

DLR Redevelopment Inventory

Redevelopment inventory totals 1.8

million sf of vacant space with

potential for up to 1.1 million sf of

datacenter

(1)

:

–

Approximately 65% of inventory in

income-producing properties

–

Remaining 35% of inventory in 5

vacant buildings

Redevelopment costs vary by building

–

Base building power, structural

upgrades: $35 -

$50 per rsf

–

Custom datacenter:  $500 to $800

per rsf

(1)

(funding available through

DLR)

Growth Opportunity

(1)  Assumes datacenter foot print is 60% of overall rentable square footage.

19

Redevelopment Program Progress Report

Construction projects underway in 11 U.S. and European markets totaling over

404,000 rentable square feet of Turn-Key Datacenter™ , build-to-suit space and

new Powered Base Building™

shell construction

DLR’s Turn-Key Datacenters™

–

Move-in ready, physically secure facilities with redundant power and cooling

capabilities

–

Measuring 10,000 –

12,000 square feet of raised-floor featuring DLR’s    

POD Architecture™

Strong interest from existing and prospective tenants

Stabilized income projected over the next 36 months

Turn-Key Datacenter™

Built-to-suit

20

DLR’s Competitive Advantage: Dedicated Technical Professionals

Staff of over 65 DLR technical professionals:

–

IT sales team

Focus on end-user, IT professionals (CIO or CTO)

–

Datacenter sales engineers

Provide value engineering and custom design expertise

–

Design and construction experts

Disciplined approach to project management

Volume purchase agreements for equipment and services

Best-in-class engineering and contracting

–

Datacenter facilities management team

Best-in-class operating policies and procedures

Fully-integrated Building Automation Systems

Global preventative maintenance agreements

Operating scale and process-based approach result in significant cost

savings and added value for tenants

DLR possesses the necessary scale to support these specialized professionals

21

Source:  Independent study by CCG Facilities Integration Inc. based on datacenter projects with improvements similar to DLR.

(1)

Infrastructure only. Does not include electronic equipment. Assumes 60% ratio of datacenter to total building with all cost allocated to raised floor area.

(2)

DLR estimate based on Equinix press release dated September 19, 2006.

(3)

Reflects all owned properties as of September 11, 2007.

Replacement Cost Estimate

Replacement Cost Illustrates the Value of DLR’s Portfolio

DLR owns over 7.6 million sq ft of improved datacenter space.

(3)

Cost per Square Foot

Equinix

(2)

Cost Components

Low

High

Land

$40

$70

Building Shell

60

150

Electrical Systems

$297

$396

Mechanical Systems (HVAC)

92

122

Fire Protection

21

29

Other Construction and Fees

130

173

Sub Total

$540

$720

Total Development Costs

$640

$940

$1,250

Base Building

Data Center

Improvements

(1)

22

0.2%

4.1%

5.1%

8.0%

12.4%

5.6%

3.6%

5.4%

17.9%

7.9%

24.4%

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Thereafter

DLR’s Model Features Long-term, Stable Leases

The stability of our long-term leases complements our growth.

Note:

Excludes

vacant

square

footage

of

0.5

million

square

feet

and

1.7

million

square

feet

of

space

held

for

redevelopment

as

of

June

30,

2007.

Lease expiration as a percentage of net rentable square feet

9.4% in through 2009

The average lease term is approximately 12 years with 7 years remaining.

Leases typically contain 3% annual rent bumps.

23

DLR Financial Overview

Strong

and

consistent

FFO

(1)

growth

–

$0.51 per diluted share and unit for 2Q07, +34% from 2Q06

and +2% from 1Q07

–

$1.63 per diluted share and unit for 2006, +19% from 2005

Increasing

NOI

(1)

–

$62.7 million in 2Q07, +7% from $58.8 million in 1Q07 and

+52% from $41.1 million in 2Q06

Well supported dividend

–

3.1%

yield

(2)

–

FFO

/

AFFO

(1)

payout

ratio

of

56%

/

77%

(3)

for

2Q07

–

Increased quarterly common dividend in 4Q06, +8%

(1)

FFO, AFFO and NOI are non GAAP financial measures. For a description of FFO, AFFO and NOI see page 30.

(2)

Based on most recent quarterly dividend annualized.  Dividend yield based on September 11, 2007 closing stock price of $37.27.

(3)

FFO

payout

ratio

is

dividend

declared

per

common

share

and

unit

divided

by

diluted

FFO

per

share

and

unit.

AFFO

payout

ratio

is

dividend

declared

per

common

share

and unit divided by diluted AFFO per share and unit. For a description of FFO and AFFO see page 30. For a reconciliation to net income see page 31.

24

DLR Capital Raising Activities

Proven access to capital

–

YTD 2007

Entered into enhanced $650 million revolving credit facility

–

Increased size from $500 million

–

Reduced applicable margin ranges by 12.5 to 25 basis points

–

Extended maturity to 2010

–

Modified covenants to enhance financial flexibility

Issued $175.0 million of 4.375% convertible preferred: 20% premium

Refinanced Joint Venture in Seattle: $20+ million net proceeds to DLR

Completed two mortgage financings totaling $121 million

Closed $70 million construction financing

Sold two non-core assets: estimated total gain on sale of $18.0 million

–

$900.2 million of capital raised in 2006

Amended prior credit facility from $350 to $500 million

Raised $172.5 million of 4.125% convertible debt: 18% premium

Completed 10 mortgage financings totaling $349.4 million

Raised $228.3 million in net proceeds from two common stock offerings

Increased float by 121.5% from 27.4 million as of January 1, 2006 to

60.7 million shares of common stock outstanding as of June 30, 2007

25

DLR 2007 Guidance

2007 projected funds from operations (FFO) per share guidance:

(1)(2)

$1.91 to $1.96

(1)

Based on second quarter 2007 earnings conference call dated August 8,2007.

(2)

FFO and AFFO are non GAAP financial measures. For a description of FFO and AFFO see page 30. For a reconciliation to net income see page 31.

Internal Growth 

11.2% to 13.0%

FFO

(2)

Per Share Growth

Leasing 

475,000 to  600,000 sq ft of turn-

key & redevelopment space

(gross rent $70 / sq ft)

100,000 to 125,000 sq ft of basic

commercial space (gross rent

$19 / sq ft)

Acquisitions

$300 - $400 million 

o

$110 million of vacant

for redevelopment

o

$190 to $290 million of

income producing at

an average cap rate of

8.25%

External Growth

6.0% to 7.0%

FFO Per Share Growth

17.2% to 20.0%

Overall FFO Per Share Growth

•

Capital Expenditure for redevelopment of $251 million

•

Total G&A of $34 million

26

Improving Overall Credit Quality of DLR Portfolio

+

=

+

=

Approximately $18 million of base rental income, or over 8% of overall income, has

experienced an improvement in credit quality.

(1)

In June 2007 Microsoft assumed 300,000 sf lease from Savvis at two DLR Santa Clara properties.

(2)

On June 30, 2006, SAVVIS completed the exchange of its Series A Preferred stock for 37.4 million shares of common stock.

(2)

(1)

27

6.0

12.0

$18.0

$0.6

$0.4

$1.8

$1.9

$0.7

$1.2

$2.2

$2.8

$16.3

$15.9

$10.6

$6.1

0.0

2.0

DLR’s top tenants have experienced a robust increase in equity capitalization

(1)

Significant Equity Capitalization Improvement in Top Tenants

(1) Increase in equity capitalization calculated as of September

11, 2007 from DLR IPO date of November 1, 2004.

28

Variable

Rate Debt

(3) 5.3%

Fixed Rate

Debt (2)(6)

26.4%

Preferred

(4) 8.1%

Equity (1)

60.2%

DLR Employs a Conservative Capital Structure

Wtd

average cost of debt:

5.99%

(5)

; approximately 83%

fixed rate debt

(6)

Coverage ratios

(7)

:

–

Debt service: 3.8x

–

Fixed charge: 2.6X

Periodically refinancing high

cost debt with lower rate,

longer term, fixed rate

financing

Total Enterprise Value

(1)

$4,209.2 million

Dividend Yield / Rate:    3.1% / $1.145

(1)

Based on closing price of $37.27 at September 11, 2007 and shares outstanding of DLR common stock at June 30, 2007.

(2)

Excludes $1.9 million of unamortized debt premium for 1125 Energy Park Drive & 731 East Trade Street.

(3)

Revolving credit facility as of September 11, 2007; fluctuates based on amount drawn on revolving credit facility.

(4)

Includes $175 million of 4.375% convertible preferred stock issued in April 2007.

(5)

Excluding the equity component of the convertible debt, the weighted average cost of debt is 5.84%.

(6)

Includes $172.5M of convertible debt and $251.4M of swapped floating rate debt.

(7)

As of 6/30/07; debt service coverage ratio is Adjusted EBITDA divided by cash interest expense; fixed charge coverage ratio is Adjusted EBITDA divided by fixed charges. 

See p. 30 for a description of Adjusted EBITDA and p. 31 for a reconciliation of Adjusted EBITDA, cash interest expense and fixed charge coverage ratio.

30

Definition of non-GAAP financial measures

This

presentation

includes

certain

non-GAAP

financial

measures

that

management

believes

are

helpful

in

understanding

our

business,

as

further

described

below.

Our

definition

and

calculation

of

non-GAAP

financial

measures

may

differ

from

those

of

other

REITs,

and,

therefore,

may

not

be

comparable.

The

non-GAAP

financial

measures

should

not

be

considered

an

alternative

to

net

income

or

any

other

GAAP

measurement

of

performance

and

should

not

be

considered

an

alternative

to

cash

flows

from

operating,

investing

or

financing

activities

as

a

measure

of

liquidity.

Funds

from

Operations

(FFO)

We

calculate

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)

(computed

in

accordance

with

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.

We

also

believe

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

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.

Adjusted

Funds

From

Operations

(AFFO)

We

present

adjusted

funds

from

operations,

or

AFFO,

as

a

supplemental

operating

measure

because,

when

compared

year

over

year,

it

assesses

our

ability

to

fund

dividend

and

distribution

requirements

from

our

operating

activities.

We

also

believe

that,

as

a

widely

recognized

measure

of

the

operations

of

REITs,

AFFO

will

be

used

by

investors

as

a

basis

to

assess

our

ability

to

fund

dividend

payments

in

comparison

to

other

REITs.

We

calculate

adjusted

funds

from

operations,

or

AFFO,

by

adding

to

or

subtracting

from

FFO

(i)

non-real

estate

depreciation,

(ii)

amortization

of

deferred

financing

costs

(iii)

non

cash

compensation

(iv)

loss

from

early

extinguishment

of

debt

(v)

straight

line

rents

(vi)

fair

value

of

lease

revenue

amortization

(vii)

capitalized

leasing

payroll

(viii)

recurring

tenant

improvements

and

(ix)

capitalized

leasing

commissions.

Other

equity

REITs

may

not

calculate

AFFO

in

a

consistent

manner.

Accordingly,

our

AFFO

may

not

be

comparable

to

other

equity

REITs’

AFFO.

AFFO

should

be

considered

only

as

a

supplement

to

net

income

computed

in

accordance

with

GAAP

as

a

measure

of

our

operations.

Net

Operating

Income

(NOI)

NOI

represents

rental

revenue

and

tenant

reimbursement

revenue

less

rental

property

operating

and

maintenance,

property

taxes

and

insurance

expenses

(as

reflected

in

statement

of

operations).

NOI

is

commonly

used

by

stockholders,

company

management

and

industry

analysts

as

a

measurement

of

operating

performance

of

the

company’s

rental

portfolio.

However,

because

NOI

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

results

from

operations,

the

utility

of

NOI

as

a

measure

of

our

performance

is

limited.

Other

REITs

may

not

calculate

NOI

in

the

same

manner

we

do

and,

accordingly,

our

NOI

may

not

be

comparable

to

such

other

REITs’

NOI.

Accordingly,

NOI

should

be

considered

only

as

a

supplement

to

net

income

as

a

measure

of

our

performance.

Earnings

Before

Interest

Taxes

Depreciation

and

Amortization

(EBITDA)

We

present

Earnings

Before

Interest

Taxes

Depreciation

and

Amortization

or

EBITDA

as

a

supplemental

operating

measure

because,

because

in

excluding

interest,

taxes,

depreciation

and

amortization,

it

permits

investors

to

view

income

from

operations

without

the

impact

of

the

cost

of

debt,

non

cash

depreciation

and

amortization

and

taxes.

We

also

believe

that,

as

a

widely

recognized

measure

of

the

performance

of

other

companies

in

the

data

center

industry

that

will

be

used

by

investors

as

a

basis

to

compare

our

operating

performance

with

that

of

others

in

that

industry.

However,

because

EBITDA

excludes

interest,

taxes,

depreciation

and

amortization

and

captures

neither

the

changes

in

the

value

of

our

properties

that

result

from

use

or

market

conditions,

nor

the

current

level

of

capital

expenditures

and

other

capitalized

items,

all

of

which

have

real

economic

effect

and

could

materially

impact

our

results

from

operations,

the

utility

of

EBITDA

as

a

measure

of

our

performance

is

limited.

Accordingly,

EBITDA

should

be

considered

only

as

a

supplement

to

net

income

as

a

measure

of

our

performance.

Each

of

FFO

and

Adjusted

EBITDA

exclude

items

that

have

real

economic

effect

and

could

materially

impact

our

results

from

operations,

and

therefore

the

utility

of

FFO

and

Adjusted

EBTIDA

as

a

measure

of

our

performance

is

limited.

Nothing

contained

herein

is

intended

to

revise

or

confirm

the

earnings,

FFO

or

acquisition

guidance

we

confirmed

on

our

Earnings

Conference

Call

held

on

May

9,

2007

and

available

on

our

website

at

www.digitalrealtytrust.com.

31

Reconciliation of non-GAAP items to their closest GAAP

2007 FFO  Reconciliation

(in millions, except per share and unit data)

Low end of

range

High end of

range

Net income before minority interest in operating partnership

$26.4

—

$28.9

Plus: Real estate related depreciation and amortization

126.9

—

128.0

Funds from operations

$153.3

—

$156.9

Less:  Preferred stock dividends

(19.3)

(19.3)

FFO available to common stockholders and unit holders

$134.0

—

$137.6

FFO per diluted share of common stock and unit outstanding

$1.91

—

$1.96

Funds from operations

(1)

Cash interest expense and fixed charges (including discontinued operations)

Q207

Q107

Q406

Q306

Q206

Q106

FY2006

FY2005

Q207

Q107

Q406

Q306

Q206

Q106

FY2006

FY2005

Net income available to common stockholders

$2,591

$18,641

$2,978

$11,342

$1,650

$1,642

$17,612

$6,087

Total GAAP interest expense (including

discontinued operations)

$15,142

$17,323

$14,569

$14,533

$12,181

$11,388

$52,671

$39,122

Capitalized interest

2,792

1,507

1,114

917

1,058

762

3,851

279

Minority interests in operating partnership including

discontinued operations

310

3,762

1,276

8,464

1,340

1,846

12,926

8,268

Change in accrued interest and other noncash

amounts

(3,575)

(948)

(3,206)

(2,590)

57

(1,906)

(7,645)

(4,345)

Real estate related depreciation and amortization

(2)

31,708

29,643

28,055

24,454

20,238

18,185

90,932

62,171

Cash interest expense

14,359

17,882

12,477

12,860

13,296

10,244

48,877

35,056

Real estate related depreciation and amortization related

to investment in unconsolidated joint venture

1,010

1,036

796

-

-

-

796

-

Scheduled debt principal payments and preferred

dividends

6,902

5,085

5,063

4,960

4,567

4,869

19,458

17,275

Gain on sale of assets

-

(18,049)

(80)

(18,016)

-

-

(18,096)

-

Total fixed charges

$21,261

$22,967

$17,540

$17,820

$17,863

$15,113

$68,335

$52,331

Funds from operations (FFO)

$35,619

$35,033

$33,025

$26,244

$23,228

$21,673

$104,170

$76,526

Funds from operations (FFO) per diluted share

$   0.51

$    0.50

$   0.48

$    0.41

$   0.38

$   0.36

$     1.63

$    1.37

Reconciliation of EBITDA

Net income per diluted share available to common

stockholders

$   0.04

$    0.32

$   0.06

$    0.30

$   0.05

$   0.06

$     0.47

$    0.25

Q207

Q107

Q406

Q306

Q206

Q106

FY2006

FY2005

Funds from operations (FFO)

$35,619

$35,033

$33,025

$26,244

$23,228

$21,673

$104,170

$76,526

Net income available to common stockholders

$2,591

$18,641

$2,978

$11,342

$1,650

$1,642

$17,612

$6,087

Non real estate depreciation

124

135

118

285

37

71

511

61

Amortization of deferred financing costs

1,321

1,389

1,115

916

937

795

3,763

2,965

Interest

15,142

17,323

14,569

14,533

12,181

11,388

52,671

39,122

Non cash compensation

836

507

491

430

435

431

1,787

481

Depreciation and amortization

31,832

29,778

28,173

24,739

20,275

18,256

91,443

62,232

Loss from early extinguishment of debt

-

-

6

40

425

57

528

1,021

Straight line rents

(5,770)

(5,111)

(5,810)

(3,856)

(4,233)

(3,843)

(17,742)

(13,023)

EBITDA

49,565

65,742

45,720

50,614

34,106

31,286

161,726

107,441

Above and below market rent amortization

(2,578)

(2,338)

(2,238)

(2,837)

(1,504)

(433)

(7,012)

(1,717)

Capitalized leasing compensation

(175)

(175)

(217)

(185)

(888)

(764)

(2,054)

(781)

Gain on sale of assets, net of minority interests

-

15,019

56

10,318

-

-

10,374

-

Recurring capital expenditures and tenant improvements

99

(393)

(2,574)

(344)

(338)

(904)

(4,160)

(2,897)

Capitalized leasing commissions

(3,836)

(439)

(3,716)

(1,523)

(1,682)

(265)

(7,186)

(3,051)

EBITDA, less effect of gain on sale of assets

$49,565

$50,723

$45,664

$40,296

$34,106

$31,286

$151,352

$107,441

Adjusted funds from operations

(1)

$25,640

$28,608

$20,200

$19,170

$16,417

$16,818

$72,605

$59,585

Reconciliation of Adjusted EBITDA

(2) Real estate depreciation and amortization was computed as follows:

Q207

Q107

Q406

Q306

Q206

Q106

FY2006

FY2005

EBITDA

$49,565

$65,742

$45,720

$50,614

$34,106

$31,286

$161,726

$107,441

Q207

Q107

Q406

Q306

Q206

Q106

FY2006

FY2005

Depreciation and amortization per income statement

$31,832

$29,399

$27,290

$23,768

$18,534

$16,537

$86,129

$59,616

Minority interests

310

3,762

1,276

8,464

1,340

1,846

12,926

8,268

Depreciation and amortization of discontinued operations

-

379

883

971

1,741

1,719

5,314

2,616

Preferred stock dividends

5,167

3,445

3,445

3,445

3,445

3,445

13,780

10,014

Non real estate depreciation

(124)

(135)

(118)

(285)

(37)

(71)

(511)

(61)

$31,708

$29,643

$28,055

$24,454

$20,238

$18,185

$90,932

$62,171

Adjusted EBITDA

55,042

72,949

50,441

62,523

38,891

36,577

188,432

125,723

Weighted-averageshares

outstanding

-

diluted

70,229

69,831

69,213

64,397

60,959

59,874

63,870

55,761

Gain on sale of assets

-

18,049

80

18,016

-

-

18,096

-

Adjusted EBITDA, less effect of gain on sale of

assets

$55,042

$54,900

$50,361

$44,507

$38,891

$36,577

$170,336

$107,441

Reconciliation of Net Operating Income (NOI)

Q207

Q107

Q406

Q306

Q206

Q106

FY2006

FY2005

Operating income

22,541

$

21,965

$

20,943

$

18,451

$

17,787

$

17,388

$

74,569

$ 

59,587

$ 

Less:

Other revenue

(247)

-

(197)

-

-

(168)

(365)

(5,829)

Add:

Depreciation and amortization

31,832

29,399

27,290

23,768

18,534

16,537

86,129

55,701

General and administrative

8,456

7,210

6,535

4,986

4,674

4,246

20,441

12,615

Other expenses

128

188

173

607

150

181

1,111

1,617

Net Operating Income

62,710

$

58,762

$

54,744

$

47,812

$

41,145

$

38,184

$

181,885

$

123,691

$

(1) Funds

from

operations

and

Adjusted

Funds

from

operations

for

all

periods

presented

above

includes

the

results

of

properties

sold in 2006 and 2007; 7979 East Tufts Avenue (July 2006), 100 Technology Center Drive (March 2007) and 4055 Valley View

Lane (March 2007).