Debt of the Operating Partnership | Debt of the Operating Partnership A summary of outstanding indebtedness of the Operating Partnership as of June 30, 2019 and December 31, 2018 is as follows (in thousands): Indebtedness Interest Rate at June 30, 2019 Maturity Date Principal Outstanding at June 30, 2019 Principal Outstanding at December 31, 2018 Global revolving credit facilities Various (1)(4) Jan 24, 2023 (1) $ 1,431,067 (2) $ 1,663,156 (2) Deferred financing costs, net (13,392 ) (15,421 ) Global revolving credit facilities, net 1,417,675 1,647,735 Unsecured Term Loans 2019 Term Loan Base Rate + 1.000% Jan 19, 2019 — 375,000 2023 Term Loan Various (3)(4) Jan 15, 2023 300,000 (5) 300,000 (5) 2024 Term Loan Various (3)(4) Jan 24, 2023 (3) 511,538 (5) 508,120 (5) Deferred financing costs, net (3,616 ) (4,216 ) Unsecured term loans, net 807,922 1,178,904 Floating rate notes due 2019 EURIBOR + 0.500% May 22, 2019 — (11) 143,338 (6) 5.875% notes due 2020 5.875% Feb 1, 2020 — (8) 500,000 3.400% notes due 2020 3.400% Oct 1, 2020 54,132 (12) 500,000 5.250% notes due 2021 5.250% Mar 15, 2021 116,589 (12) 400,000 3.950% notes due 2022 3.950% Jul 1, 2022 500,000 500,000 3.625% notes due 2022 3.625% Oct 1, 2022 300,000 300,000 2.750% notes due 2023 2.750% Feb 1, 2023 350,000 350,000 4.750% notes due 2023 4.750% Oct 13, 2023 380,880 (7) 382,620 (7) 2.625% notes due 2024 2.625% Apr 15, 2024 682,380 (6) 688,020 (6) 2.750% notes due 2024 2.750% Jul 19, 2024 317,400 (7) 318,850 (7) 4.250% notes due 2025 4.250% Jan 17, 2025 507,840 (7) 510,160 (7) 4.750% notes due 2025 4.750% Oct 1, 2025 450,000 450,000 2.500% notes due 2026 2.500% Jan 16, 2026 1,222,598 (6) — 3.700% notes due 2027 3.700% Aug 15, 2027 1,000,000 1,000,000 4.450% notes due 2028 4.450% Jul 15, 2028 650,000 650,000 3.600% notes due 2029 3.600% Jul 1, 2029 900,000 — 3.300% notes due 2029 3.300% Jul 19, 2029 444,360 (7) 446,390 (7) 3.750% notes due 2030 3.750% Oct 17, 2030 $ 698,280 (7)(9) $ 510,160 (7) Unamortized discounts, net of premiums (11,779 ) (19,859 ) Total senior notes, net of discount 8,562,680 7,629,679 Deferred financing costs, net (51,024 ) (40,553 ) Total unsecured senior notes, net of discount and deferred financing costs 8,511,656 7,589,126 Indebtedness Interest Rate at June 30, 2019 Maturity Date Principal Outstanding June 30, 2019 Principal Outstanding December 31, 2018 Secured Debt: 731 East Trade Street 8.22% Jul 1, 2020 $ 1,462 $ 1,776 Secured note due March 2023 LIBOR + 1.000% (4) Mar 1, 2023 104,000 104,000 Secured note due December 2023 Base Rate + 4.250% Dec 20, 2023 — (10) 600,000 Unamortized net premiums 101 148 Total mortgage loans, including premiums 105,563 705,924 Deferred financing costs, net (238 ) (20,210 ) Total secured debt, including premiums and net of deferred financing costs 105,325 685,714 Total indebtedness $ 10,842,578 $ 11,101,479 _________________________________ (1) The interest rate for borrowings under the global revolving credit facility equals the applicable index plus a margin of 90 basis points, which is based on the current credit rating of our long-term debt. An annual facility fee of 20 basis points, which is based on the credit rating of our long-term debt, is due and payable quarterly on the total commitment amount of the facility. Two six months extensions are available, which we may exercise if certain conditions are met. The interest rate for borrowings under the Yen revolving credit facility equals the applicable index plus a margin of 50 basis points, which is based on the current credit rating of our long-term debt. (2) Balances as of June 30, 2019 and December 31, 2018 are as follows (balances, in thousands): Denomination of Draw Balance as of June 30, 2019 Weighted-average interest rate Balance as of December 31, 2018 Weighted-average interest rate Floating Rate Borrowing (a)(e) U.S. dollar ($) $ 645,000 (b) 3.32 % (b) $ 890,000 (b) 3.37 % (b) British pound sterling (£) 6,348 (c) 1.59 % 8,290 (d) 1.61 % Euro (€) 391,231 (c) 0.90 % 451,800 (d) 0.90 % Australian dollar (AUD) 31,309 (c) 2.24 % 27,632 (d) 2.82 % Hong Kong dollar (HKD) 10,994 (c) 3.17 % 8,797 (d) 3.14 % Japanese yen (JPY) — — % 4,105 (d) 0.90 % Singapore dollar (SGD) 70,796 (c) 2.76 % 77,112 (d) 2.79 % Canadian dollar (CAD) 80,647 (c) 2.86 % 60,856 (d) 3.16 % Total $ 1,236,325 2.45 % $ 1,528,592 2.57 % Yen Revolving Credit Facility (a) $ 194,742 (f) 0.50 % $ 134,564 (f) 0.50 % Total borrowings $ 1,431,067 2.19 % (b) $ 1,663,156 2.41 % (b) (a) The interest rates for floating rate borrowings under the global revolving credit facility currently equal the applicable index plus a margin of 90 basis points, which is based on the credit rating of our long-term debt. The interest rate for borrowings under the Yen revolving credit facility equals the applicable index plus a margin of 50 basis points, which is based on the current credit rating of our long-term debt. (b) As of June 30, 2019 and December 31, 2018 , approximately $306.9 million of the U.S. dollar tranche was subject to interest rate swaps. As of June 30, 2019 , the weighted-average interest rate reflecting interest rate swaps was 2.80% (U.S. dollar) and 1.96% (Total borrowings). As of December 31, 2018 , the weighted-average interest rate reflecting interest rate swaps was 2.99% (U.S. dollar) and 2.20% (Total borrowings). (c) Based on exchange rates of $1.27 to £1.00, $1.14 to €1.00, $0.70 to 1.00 AUD, $0.13 to 1.00 HKD, $0.74 to 1.00 SGD and $0.76 to 1.00 CAD, respectively, as of June 30, 2019 . (d) Based on exchange rates of $1.28 to £1.00, $1.15 to €1.00, $0.70 to 1.00 AUD, $0.13 to 1.00 HKD, $0.01 to 1.00 JPY, $0.73 to 1.00 SGD and $0.73 to 1.00 CAD, respectively, as of December 31, 2018 . (e) As of June 30, 2019 , approximately $44.4 million of letters of credit were issued. (f) Based on exchange rates of $0.01 to 1.00 JPY for June 30, 2019 and December 31, 2018 . (3) Interest rates are based on our current senior unsecured debt ratings and are currently 100 basis points over the applicable index for floating rate advances for the 2023 Term Loan and the 2024 Term Loan. Two six months extensions are available for the 2024 Term Loan, which we may exercise if certain conditions are met. (4) We have entered into interest rate swap agreements as a cash flow hedge for interest generated by the U.S. dollar and Canadian dollar borrowings under the global revolving credit facility, the 2023 Term Loan and 2024 Term Loan and the secured note due March 2023. See Note 15 "Derivative Instruments" for further information. (5) Balances as of June 30, 2019 and December 31, 2018 are as follows (balances, in thousands): Denomination of Draw Balance as of June 30, 2019 Weighted-average interest rate Balance as of December 31, 2018 Weighted-average interest rate U.S. dollar ($) $ 300,000 3.39 % (b) $ 300,000 3.46 % (d) Singapore dollar (SGD) 147,135 (a) 2.89 % 146,080 (c) 2.76 % Australian dollar (AUD) 203,791 (a) 2.31 % 204,632 (c) 2.94 % Hong Kong dollar (HKD) 85,388 (a) 3.41 % 85,188 (c) 3.32 % Canadian dollar (CAD) 75,224 (a) 2.96 % (b) 72,220 (c) 3.24 % (d) Total $ 811,538 2.99 % (b) $ 808,120 3.17 % (d) (a) Based on exchange rates of $0.74 to 1.00 SGD, $0.70 to 1.00 AUD, $0.13 to 1.00 HKD and $0.76 to 1.00 CAD, respectively, as of June 30, 2019 . (b) As of June 30, 2019 , the weighted-average interest rate reflecting interest rate swaps was 2.44% (U.S. dollar), 1.78% (Canadian dollar) and 2.53% (Total). See Note 15 "Derivative Instruments" for further discussion on interest rate swaps. (c) Based on exchange rates of $0.73 to 1.00 SGD, $0.70 to 1.00 AUD, $0.13 to 1.00 HKD and $0.73 to 1.00 CAD, respectively, as of December 31, 2018 . (d) As of December 31, 2018 , the weighted-average interest rate reflecting interest rate swaps was 2.44% (U.S. dollar), 1.78% (Canadian dollar) and 2.66% (Total). (6) Based on exchange rates of $1.14 to €1.00 as of June 30, 2019 and $1.15 to €1.00 as of December 31, 2018 . (7) Based on exchange rates of $1.27 to £1.00 as of June 30, 2019 and $1.28 to £1.00 as of December 31, 2018 . (8) The 5.875% 2020 Notes were paid in full in January 2019 (by tender offer) and February 2019 (by redemption of the remaining balance after the tender offer). The tender offer and redemption resulted in an early extinguishment charge of approximately $12.9 million during the three months ended March 31, 2019. (9) On March 5, 2019, Digital Stout Holding, LLC, a wholly owned subsidiary of the Operating Partnership, issued and sold an additional £150.0 million aggregate principal amount of 2030 Notes. The terms of the 2030 Notes are governed by an indenture, dated as of October 17, 2018, among Digital Stout Holding, LLC, Digital Realty Trust, Inc., the Operating Partnership, Deutsche Trustee Company Limited, as trustee, Deutsche Bank AG, London Branch, as paying agent and a transfer agent, and Deutsche Bank Luxembourg S.A., as registrar and a transfer agent (the “GBP Notes Indenture”), pursuant to which Digital Stout Holding, LLC previously issued £400.0 million in aggregate principal amount of its 2030 Notes. The 2030 Notes are treated as a single series with the notes previously issued under the GBP Notes Indenture. (10) The debt was deconsolidated as a result of the Ascenty joint venture formed with Brookfield. (11) Paid in full at maturity in May 2019. (12) The 3.400% 2020 Notes and 2021 Notes were paid in full in June 2019 (by tender offer) and July 2019 (by redemption of the remaining balances after the tender offer). The tender offer resulted in an early extinguishment charge of approximately $20.9 million during the three months ended June 30, 2019 . The indentures governing our debt contain certain covenants, including (1) a leverage ratio not to exceed 60% , (2) a secured debt leverage ratio not to exceed 40% and (3) an interest coverage ratio of greater than 1.50 , and also requires us to maintain total unencumbered assets of not less than 150% of the aggregate principal amount of unsecured debt. At June 30, 2019 , we were in compliance with each of these financial covenants. 2.500% Notes due 2026 On January 16, 2019, Digital Euro Finco, LLC, a wholly owned indirect finance subsidiary of the Operating Partnership, issued and sold €850 million aggregate principal amount of 2.500% Guaranteed Notes due 2026 denominated in Euros, which we refer to as the 2026 Notes. The 2026 Notes are senior unsecured obligations of Digital Euro Finco, LLC and are fully and unconditionally guaranteed by Digital Realty Trust, Inc. and the Operating Partnership. The terms of the 2026 Notes are governed by an indenture, dated as of January 16, 2019, among Digital Euro Finco, LLC, Digital Realty Trust, Inc., the Operating Partnership, Deutsche Trustee Company Limited, as trustee, Deutsche Bank AG, London Branch, as paying agent and a transfer agent, and Deutsche Bank Luxembourg S.A., as registrar and a transfer agent (the “2026 Notes Indenture”). Net proceeds from the offering were approximately €843.5 million (approximately $960.9 million based on the exchange rate on January 16, 2019) after deducting managers’ discounts and estimated offering expenses. We intend to allocate an amount equal to the net proceeds from the offering of the 2026 Notes to finance or refinance, in whole or in part, certain green building, energy and resource efficiency and renewable energy projects (collectively, “Eligible Green Projects”), including the development and redevelopment of such projects. Pending the allocation of an amount equal to the net proceeds of the 2026 Notes to Eligible Green Projects, all or a portion of an amount equal to the net proceeds were used for the payment of outstanding indebtedness or other capital management activities. Such indebtedness to be redeemed or repaid included the Operating Partnership’s 5.875% Senior Notes due 2020 pursuant to a previously announced tender offer for such notes. On March 6, 2019, Digital Euro Finco, LLC issued and sold an additional €225.0 million aggregate principal amount of 2026 Notes. The terms of the additional 2026 Notes are governed by the 2026 Notes Indenture pursuant to which Digital Euro Finco, LLC previously issued €850.0 million in aggregate principal amount of its 2026 Notes. The 2026 Notes issued in March 2019 will be treated as a single series with the notes previously issued under the 2026 Notes Indenture. 3.600% Notes due 2029 On June 14, 2019, the Operating Partnership issued $900.0 million in aggregate principal amount of notes, maturing on July 1, 2029 with an interest rate of 3.600% per annum, which we refer to as the 3.600% 2029 Notes. The purchase price paid by the initial purchasers was 99.823% of the principal amount. The 3.600% 2029 Notes are general unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are fully and unconditionally guaranteed by Digital Realty Trust, Inc. Interest on the 3.600% 2029 Notes is payable on January 1 and July 1 of each year, beginning on January 1, 2020. The net proceeds from the offering after deducting the original issue discount of approximately $1.6 million and underwriting commissions and expenses of approximately $7.8 million was approximately $890.6 million . We used the net proceeds from this offering to finance the tender offer for, and redemption of, our 3.400% 2020 Notes and 2021 Notes, temporarily repay borrowings under our global revolving credit facility and for general corporate purposes. The 3.600% 2029 Notes have been reflected net of discount and deferred financing costs in the condensed consolidated balance sheet. The indenture governing the 3.600% 2029 Notes contains certain covenants, including (1) a leverage ratio not to exceed 60% , (2) a secured debt leverage ratio not to exceed 40% and (3) an interest coverage ratio of greater than 1.50 , and also requires us to maintain total unencumbered assets of not less than 150% of the aggregate principal amount of unsecured debt. At June 30, 2019, we were in compliance with each of these financial covenants. The table below summarizes our debt maturities and principal payments as of June 30, 2019 (in thousands): Global Revolving (1) Unsecured (1) Senior Notes Secured Debt Total Debt Remainder of 2019 $ — $ — $ — $ 329 $ 329 2020 — — 54,132 1,133 55,265 2021 — — 116,589 — 116,589 2022 — — 800,000 — 800,000 2023 1,236,325 811,538 730,880 104,000 2,882,743 Thereafter 194,742 — 6,872,858 — 7,067,600 Subtotal $ 1,431,067 $ 811,538 $ 8,574,459 $ 105,462 $ 10,922,526 Unamortized discount — — (18,666 ) — (18,666 ) Unamortized premium — — 6,887 101 6,988 Total $ 1,431,067 $ 811,538 $ 8,562,680 $ 105,563 $ 10,910,848 (1) The global revolving credit facility and 2024 Term Loan are subject to two six -month extension options exercisable by us. The bank group is obligated to grant the extension options provided we give proper notice, we make certain representations and warranties and no default exists. |