Attached files
Exhibit 99.1
| ITEM 6. | SELECTED FINANCIAL DATA |
The following table sets forth selected consolidated financial and operating data on an historical basis for our company and on a combined historical basis for our company’s predecessor. Our predecessor is comprised of the real estate activities and holdings of GI Partners related to the properties GI Partners contributed to our portfolio in connection with our initial public offering. We have not presented historical information for our company for periods prior to the consummation of our initial public offering because we did not have any corporate activity until the completion of our initial public offering other than the issuance of shares of common stock in connection with the initial capitalization of our company, and because we believe that a discussion of the results of the Company would not be meaningful. Our predecessor’s combined historical financial information includes:
| • | the wholly owned real estate subsidiaries and majority-owned real estate joint ventures that GI Partners contributed to our operating partnership in connection with our initial public offering; |
| • | an allocation of GI Partners’ line of credit to the extent that borrowings and related interest expense relate to (1) borrowings to fund acquisitions of the properties in our portfolio and (2) borrowings to pay asset management fees paid by GI Partners that were allocated to the properties in our portfolio; and |
| • | an allocation of the asset management fees paid to a related party and incurred by GI Partners, along with an allocation of the liability for any such fees that were unpaid as of December 31, 2003 and an allocation of GI Partners’ general and administrative expenses. |
The following data should be read in conjunction with our financial statements and notes thereto and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included below in this Form 10-K. Certain prior year amounts have been reclassified to conform to the current year presentation.
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The Company and the Company Predecessor
(Amounts in thousands, except share and per share data)
| The Company | The Predecessor |
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| Year Ended December 31, | Period from November 3, 2004 to December 31, 2004 |
Period from January 1, 2004 to November 2, |
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| 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||||||
| Statement of Operations Data: |
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| Operating Revenues: |
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| Rental |
$ | 404,559 | $ | 319,603 | $ | 221,371 | $ | 150,072 | $ | 18,753 | $ | 57,112 | ||||||||||||
| Tenant reimbursements |
107,503 | 75,003 | 50,340 | 35,720 | 3,772 | 11,248 | ||||||||||||||||||
| Other |
15,383 | 641 | 365 | 5,829 | — | — | ||||||||||||||||||
| Total operating revenues |
527,445 | 395,247 | 272,076 | 191,621 | 22,525 | 68,360 | ||||||||||||||||||
| Operating Expenses: |
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| Rental property operating and maintenance |
151,505 | 108,744 | 59,255 | 39,257 | 4,488 | 10,933 | ||||||||||||||||||
| Property taxes |
31,102 | 27,181 | 26,890 | 20,189 | 1,564 | 5,874 | ||||||||||||||||||
| Insurance |
4,988 | 5,527 | 3,682 | 2,653 | 435 | 1,203 | ||||||||||||||||||
| Depreciation and amortization |
172,378 | 134,419 | 86,129 | 55,702 | 6,293 | 18,785 | ||||||||||||||||||
| General and administrative |
38,589 | 31,600 | 20,441 | 12,615 | 20,766 | 199 | ||||||||||||||||||
| Asset management fees to related party |
— | — | — | — | — | 2,655 | ||||||||||||||||||
| Other |
1,637 | 912 | 1,111 | 1,617 | 57 | 1,021 | ||||||||||||||||||
| Total operating expenses |
400,199 | 308,383 | 197,508 | 132,033 | 33,603 | 40,670 | ||||||||||||||||||
| Operating income (loss) |
127,246 | 86,864 | 74,568 | 59,588 | (11,078 | ) | 27,690 | |||||||||||||||||
| Other Income (Expenses): |
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| Equity in earnings of unconsolidated joint venture |
2,369 | 449 | 177 | — | — | — | ||||||||||||||||||
| Interest and other income |
2,106 | 2,287 | 1,270 | 1,274 | 30 | 69 | ||||||||||||||||||
| Interest expense |
(63,621 | ) | (67,054 | ) | (50,598 | ) | (35,381 | ) | (5,000 | ) | (16,768 | ) | ||||||||||||
| Loss from early extinguishment of debt |
(182 | ) | — | (527 | ) | (1,021 | ) | (283 | ) | — | ||||||||||||||
| Income (loss) from continuing operations |
67,918 | 22,546 | 24,890 | 24,460 | (16,331 | ) | 10,991 | |||||||||||||||||
| Net income (loss) from discontinued operations |
— | 1,395 | 314 | (103 | ) | (39 | ) | (302 | ) | |||||||||||||||
| Gain on sale of discontinued operations |
— | 18,049 | 18,096 | — | — | — | ||||||||||||||||||
| Net income (loss) |
67,918 | 41,990 | 43,300 | 24,357 | (16,370 | ) | 10,689 | |||||||||||||||||
| Net income (loss) attributable to noncontrolling interests |
(2,664 | ) | (3,753 | ) | (12,570 | ) | (8,256 | ) | 10,201 | 37 | ||||||||||||||
| Net income (loss) attributable to Digital Realty Trust, Inc. |
65,254 | 38,237 | 30,730 | 16,101 | (6,169 | ) | $ | 10,726 | ||||||||||||||||
| Preferred stock dividends |
(38,564 | ) | (19,330 | ) | (13,780 | ) | (10,014 | ) | — | |||||||||||||||
| Net income (loss) available to common stockholders |
$ | 26,690 | $ | 18,907 | $ | 16,950 | $ | 6,087 | $ | (6,169 | ) | |||||||||||||
| Per Share Data: |
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| Basic income (loss) per share available to common stockholders |
$ | 0.39 | $ | 0.31 | $ | 0.47 | $ | 0.25 | $ | (0.30 | ) | |||||||||||||
| Diluted income (loss) per share available to common stockholders |
$ | 0.38 | $ | 0.30 | $ | 0.45 | $ | 0.25 | $ | (0.30 | ) | |||||||||||||
| Cash dividend per common share |
$ | 1.26 | $ | 1.17 | $ | 1.08 | $ | 1.00 | $ | 0.16 | ||||||||||||||
| Weighted average common shares outstanding: |
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| Basic |
68,829,267 | 60,527,625 | 36,134,983 | 23,986,288 | 20,770,875 | |||||||||||||||||||
| Diluted |
70,435,760 | 62,572,937 | 37,442,192 | 24,221,732 | 20,770,875 | |||||||||||||||||||
| The Company December 31, | |||||||||||||||
| 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||
| Balance Sheet Data: |
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| Net investments in real estate |
$ | 2,748,220 | $ | 2,302,500 | $ | 1,736,979 | $ | 1,194,106 | $ | 787,412 | |||||
| Total assets |
3,281,045 | 2,809,791 | 2,185,783 | 1,529,170 | 1,013,287 | ||||||||||
| Revolving credit facility |
138,579 | 299,731 | 145,452 | 181,000 | 44,000 | ||||||||||
| Unsecured senior notes |
58,000 | — | — | — | — | ||||||||||
| Mortgages and other secured loans |
1,026,594 | 895,507 | 804,686 | 568,067 | 475,498 | ||||||||||
| 4.125% exchangeable senior debentures due 2026, net |
161,901 | 158,224 | 154,786 | — | — | ||||||||||
| Total liabilities |
1,705,969 | 1,673,361 | 1,320,317 | 880,228 | 584,229 | ||||||||||
| Total stockholders equity |
1,503,921 | 1,057,167 | 723,576 | 386,497 | 173,199 | ||||||||||
| Noncontrolling interests in operating partnership |
66,797 | 74,335 | 141,890 | 262,239 | 254,862 | ||||||||||
| Noncontrolling interests in consolidated joint ventures |
4,358 | 4,928 | — | 206 | 997 | ||||||||||
| Total liabilities and equity |
$ | 3,281,045 | $ | 2,809,791 | $ | 2,185,783 | $ | 1,529,170 | $ | 1,013,287 | |||||
| The Company Year ended December 31, |
The Company and the Predecessor |
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| Year ended December 31, 2004 |
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| 2008 | 2007 | 2006 | 2005 | |||||||||||||||||
| Cash flows from (used in): |
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| Operating activities |
$ | 217,808 | $ | 105,655 | $ | 99,364 | $ | 77,050 | $ | 44,638 | ||||||||||
| Investing activities |
(647,751 | ) | (537,427 | ) | (597,786 | ) | (474,713 | ) | (371,277 | ) | ||||||||||
| Financing activities |
471,925 | 440,863 | 509,753 | 404,036 | 326,022 | |||||||||||||||
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