[DFT Logo]
				Fourth Quarter 2011
				Earnings Release
				and Supplemental Information

[Photograph of SC1 Data Center Facility]

SC1 Data Center        Santa Clara, California

 

DuPont Fabros Technology, Inc.				(202) 728-0044				Investor Relations Contact:
1212 New York Avenue, NW				www.dft.com				Mr. Christopher A. Warnke
Suite 900				NYSE: DFT				investorrelations@dft.com
Washington, D.C. 20005								(202) 478-2330

---

[DFT Logo]

Fourth Quarter 2011 Results

 

Table of Contents
Earnings Release			1-4
Consolidated Statements of Operations			5
Reconciliations of Net Income to Funds From Operations and Adjusted Funds From Operations			6
Consolidated Balance Sheets			7
Consolidated Statements of Cash Flows			8
Operating Properties			9
Lease Expirations			10
Development Projects			11
Debt Summary and Debt Maturity			12
Selected Unsecured Debt Metrics and Capital Structure			13
Common Share and Operating Partnership Unit Weighted Average Amounts Outstanding			14
2012 Guidance			15

Note: This press release supplement contains certain non-GAAP financial measures that management believes are helpful in understanding the company’s business, as further discussed within this press release supplement. These financial measures, which include Funds From Operations, Adjusted Funds From Operations, Funds From Operations per share and Adjusted Funds From Operations per share, should not be considered as an alternative to net earnings or any other GAAP measurement of performance or as an alternative to cash flows from operating, investing or financing activities. Furthermore, these non-GAAP financial measures are not intended to be a measure of cash flow or liquidity. Information included in this supplemental package is unaudited.

---

[DFT Logo]

NEWS        

DUPONT FABROS TECHNOLOGY, INC. REPORTS 2011 RESULTS

Revenues up 13% Quarter over Quarter and 19% Year Over Year

Provides Outlook for 2012 Performance

WASHINGTON, DC, — February 7, 2012 - DuPont Fabros Technology, Inc. (NYSE: DFT) today reported results for the quarter and year ended December 31, 2011. All per share results are reported on a fully diluted basis.

Highlights

 

•

As of today, the company’s stabilized operating portfolio is 99% leased. The company’s non-stabilized portfolio is 39% leased, including CH1 Phase II.

 

•

Fourth quarter 2011 activity:

 

•

Placed in service SC1 Phase I in Santa Clara, California, comprising 18.2 megawatts (“MW”) of critical load.

 

•

Signed three leases and pre-leases totaling 3.01 MW of critical load and 16,120 raised square feet.

 

•

Subsequent to the fourth quarter:

 

•

Placed in service CH1 Phase II in Elk Grove Village, Illinois, comprising 18.2 MW of critical load.

 

•

Issued 2.6 million of additional shares of 7.625% Series B perpetual preferred stock raising net proceeds of approximately $62.6 million.

 

•

Signed one lease totaling 2.28 MW and 11,000 raised square feet.

Hossein Fateh, President and Chief Executive Officer, said, “Over the past 15 months we have opened five new developments comprising 85.8 megawatts of critical load and leased about half of this space. Our primary focus in 2012 is to lease our remaining available space. The timing of corporate decision-making by potential tenants to execute leases is not always predictable, but we remain optimistic regarding the long–term demand for our strategically located wholesale facilities.”

Fourth Quarter 2011 Results

For the quarter ended December 31, 2011, the company reported earnings of $0.12 per share compared to $0.10 per share for the fourth quarter of 2010. Revenues increased 13%, or $8.4 million, to $74.4 million for the fourth quarter of 2011 over the fourth quarter of 2010. This increase is due to new leases commencing at ACC5 Phase II, CH1 Phase I, NJ1 Phase I, SC1 Phase I and ACC6 Phase I.

 

- 1 -

---

Funds from Operations (“FFO”) for the quarter ended December 31, 2011 was $0.37 per share compared to $0.33 per share for the quarter ended December 31, 2010. The increase of 12% or $0.04 per share is due to:

 

•

Higher operating income, excluding depreciation, of $0.06 per share due to new leases commencing, partially offset by

 

•

Higher fixed charges of $0.02 per share representing an increase in preferred dividends of $0.03 per share partially offset by lower overall interest expense of $0.01 per share.

Year Ended December 31, 2011 Results

For the year ended December 31, 2011, the company reported earnings of $0.71 per share compared to $0.51 per share for the prior year. Revenues increased 19%, or $44.9 million, to $287.4 million for the year ended December 31, 2011 over the prior year. This increase is due to new leases commencing in 2011.

FFO for the year ended December 31, 2011 was $1.61 per share compared to $1.33 per share for 2010. The increase of 21%, or $0.28 per share, is due to higher operating income, excluding depreciation, due to new leases commencing in 2011.

Portfolio Update

During the fourth quarter 2011, the company:

 

•

Signed three leases totaling 3.01 MW of critical load and 16,120 raised square feet with an average lease term of 6.7 years.

 

•

Two leases were at NJ1 Phase I for 1.71 MW of critical load and 8,120 raised square feet. Both of these leases commenced in the fourth quarter.

 

•

One pre-lease was at CH1 Phase II for 1.30 MW of critical load and 8,000 raised square feet. This lease commenced in the first quarter of 2012.

 

•

Commenced three leases totaling 3.98 MW of critical load and 19,120 raised square feet, which includes the above two NJ1 leases.

During the full year 2011, the company:

 

•

Completed development, commissioned and placed into service two new data centers consisting of 31.2 MW of critical load capacity – 13.0 MW in Ashburn, Virgina and 18.2 MW in Santa Clara, California.

 

•

Signed 14 leases totaling 24.92 MW of critical load and 133,716 raised square feet with an average lease term of 7.9 years and approximate contract value of $428 million.

 

•

Commenced 11 leases totaling 13.46 MW of critical load and 65,093 raised square feet.

Subsequent to the fourth quarter 2011, the company:

 

•

Completed development, commissioned and placed into service one new data center consisting of 18.2 MW of critical load capacity. CH1 Phase II was 79% pre-leased as of February 1, 2012, with 57% of pre-leases commencing on February 1, 2012.

 

•

Signed one lease at SC1 Phase I for 2.28 MW of critical load and 11,000 raised square feet. This lease commenced in the first quarter of 2012.

Capital Markets Update

In January 2012, the company sold 2.6 million additional shares of 7.625% Series B preferred stock at a price of $25 per share raising net proceeds of approximately $62.6 million. A portion of the net proceeds was used to pay off the outstanding balance under the line of credit. As of today, there are no borrowings under the $100 million line of credit facility.

 

- 2 -

---

First Quarter and Full Year 2012 Guidance

The company has established an FFO guidance range of $0.31 to $0.35 per share for the first quarter of 2012. The $0.04 per share difference between the company’s fourth quarter 2011 FFO of $0.37 per share and the midpoint of the first quarter guidance range is primarily due to:

 

•

A negative impact of $0.03 per share from lower capitalized interest expense.

 

•

A negative impact of $0.01 per share from higher preferred dividends.

The company has established an FFO guidance range of $1.31 to $1.51 per share for the full year 2012. The assumptions underlying this guidance can be found on page 15 of this press release. The $0.20 per share difference between the company’s full year 2011 FFO of $1.61 and the expected mid-point of the company’s guidance range for full year 2012 is primarily due to:

 

•

A net positive impact of $0.18 per share from higher operating income excluding depreciation. This includes

 

•

A positive impact of $0.32 per share primarily from new leases commencing,

 

•

A negative impact of $0.12 per share related to unreimbursed property operating expenses, real estate taxes and insurance, and

 

•

A negative impact of $0.02 per share from expensing the compensation of all development personnel who were capitalized in 2011.

 

•

A negative impact of $0.31 per share from lower capitalized interest expense as no new development starts are budgeted for 2012. The company’s capitalization policy is to stop interest capitalization when projects are placed in service.

 

•

A negative impact of $0.07 per share from higher preferred dividends.

Fourth Quarter 2011 Conference Call and Webcast Information

The company will host a conference call to discuss these results tomorrow, Wednesday, February 8, 2012 at 10:00 a.m. ET. To access the live call, please visit the Investor Relations section of the company’s website at www.dft.com or dial 1-866-524-3160 (domestic) or 1-412-317-6760 (international). A replay will be available for seven days by dialing 1-877-344-7529 (domestic) or 1-412-317-0088 (international) using passcode 10008549. The webcast will be archived on the company’s website for one year at www.dft.com on the Presentations & Webcasts page.

First Quarter 2012 Conference Call

DuPont Fabros Technology, Inc. expects to announce first quarter 2012 results on Wednesday, April 25, 2012 and to host a conference call to discuss those results at 10:00 a.m. ET on Thursday, April 26, 2012.

About DuPont Fabros Technology, Inc.

DuPont Fabros Technology, Inc. (NYSE: DFT) is a real estate investment trust (REIT) and leading owner, developer, operator and manager of wholesale data centers. The company’s data centers are highly specialized, secure, network-neutral facilities used primarily by national and international Internet and enterprise companies to house, power and cool the computer servers that support many of their most critical business processes. DuPont Fabros Technology, Inc. is headquartered in Washington, DC. For more information, please visit www.dft.com.

 

- 3 -

---

Forward-Looking Statements

Certain statements contained in this press release may be deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The matters described in these forward-looking statements include expectations regarding future events, results and trends and are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond the company’s control. The company faces many risks that could cause its actual performance to differ materially from the results contemplated by its forward-looking statements, including, without limitation, the risk that its assumptions underlying its 2012 FFO guidance are not realized, the risks related to the leasing of available space to third-party tenants, including the ability of the company to negotiate leases on terms that will enable it to achieve its expected returns, the risk that the company may be unable to obtain financing on favorable terms to facilitate, among other things, future development projects, the risks commonly associated with construction and development of new facilities (including delays and/or cost increases associated with the completion of new developments), risks relating to obtaining required permits and compliance with permitting, zoning, land-use and environmental requirements, the risk that the company will not declare and pay dividends as anticipated for 2012 and the risk that the company may not be able to maintain its qualification as a REIT for federal tax purposes. The periodic reports that the company files with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2010 and its quarterly reports on Form 10-Q for the quarters ending March 31, 2011, June 30, 2011 and September 30, 2011, contain detailed descriptions of these and many other risks to which the company is subject. These reports are available on our website at www.dft.com. Because of the risks described above and other unknown risks, the company’s actual results, performance or achievements may differ materially from the results, performance or achievements contemplated by its forward-looking statements. The information set forth in this news release represents management’s expectations and intentions only as of the date of this press release. The company assumes no responsibility to issue updates to the contents of this press release.

 

- 4 -

---

DUPONT FABROS TECHNOLOGY, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands except share and per share data)

 

		Three months ended December 31,								Year ended December 31,
		2011				2010				2011				2010
Revenues:
Base rent		$	49,783			$	43,106			$	193,908			$	154,936
Recoveries from tenants			24,194				20,135				91,246				78,447
Other revenues			425				2,770				2,287				9,158
Total revenues			74,402				66,011				287,441				242,541
Expenses:
Property operating costs			21,979				17,128				80,351				67,033
Real estate taxes and insurance			1,928				1,342				6,392				5,281
Depreciation and amortization			20,470				17,156				75,070				62,483
General and administrative			3,439				3,607				15,955				14,743
Other expenses			179				2,163				1,137				7,124
Total expenses			47,995				41,396				178,905				156,664
Operating income			26,407				24,615				108,536				85,877
Interest income			12				386				486				1,074
Interest:
Expense incurred			(9,990	)			(8,706	)			(27,096	)			(36,746	)
Amortization of deferred financing costs			(810	)			(3,292	)			(2,446	)			(6,497	)
Net income			15,619				13,003				79,480				43,708
Net income attributable to redeemable noncontrolling interests – operating partnership			(2,302	)			(3,592	)			(14,505	)			(13,261	)
Net income attributable to controlling interests			13,317				9,411				64,975				30,447
Preferred stock dividends			(5,573	)			(3,157	)			(20,874	)			(3,157	)
Net income attributable to common shares		$	7,744			$	6,254			$	44,101			$	27,290
Earnings per share – basic:
Net income attributable to common shares		$	0.12			$	0.10			$	0.71			$	0.51
Weighted average common shares outstanding			62,217,754				59,055,307				61,241,520				52,800,712
Earnings per share – diluted:
Net income attributable to common shares		$	0.12			$	0.10			$	0.71			$	0.51
Weighted average common shares outstanding			63,242,288				60,310,402				62,303,905				54,092,703
Dividends declared per common share		$	0.12			$	0.12			$	0.48			$	0.44

 

- 5 -

---

DUPONT FABROS TECHNOLOGY, INC.

RECONCILIATIONS OF NET INCOME TO FFO AND AFFO ⁽¹⁾

(unaudited and in thousands except share and per share data)

 

		Three months ended December 31,								Year ended December 31,
		2011				2010				2011				2010
Net income		$	15,619			$	13,003			$	79,480			$	43,708
Depreciation and amortization			20,470				17,156				75,070				62,483
Less: Non real estate depreciation and amortization			(262	)			(190	)			(862	)			(642	)
FFO			35,827				29,969				153,688				105,549
Preferred stock dividends			(5,573	)			(3,157	)			(20,874	)			(3,157	)
FFO attributable to common shares and OP units		$	30,254			$	26,812			$	132,814			$	102,392
Straight-line revenues			(4,577	)			(9,514	)			(34,095	)			(35,403	)
Amortization of lease contracts above and below market value			(974	)			(535	)			(2,874	)			(2,505	)
Loss on early extinguishment of debt			—				2,547				—				2,547
Compensation paid with Company common shares			1,517				1,005				5,950				3,803
AFFO		$	26,220			$	20,315			$	101,795			$	70,834
FFO attributable to common shares and OP units per share – diluted		$	0.37			$	0.33			$	1.61			$	1.33
AFFO per share – diluted		$	0.32			$	0.25			$	1.23			$	0.92
Weighted average common shares and OP units outstanding – diluted			82,497,118				82,392,751				82,449,427				77,085,859

 

(1)

Funds from operations, or FFO, is used by industry analysts and investors as a supplemental operating performance measure for REITs. The Company calculates FFO in accordance with the definition that was adopted by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. FFO, as defined by NAREIT, represents net income determined in accordance with GAAP, excluding extraordinary items as defined under GAAP, impairment charges on depreciable real estate assets and gains or losses from sales of previously depreciated operating real estate assets, plus specified non-cash items, such as real estate asset depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. The Company also presents FFO attributable to common shares and OP units, which is FFO excluding preferred stock dividends. FFO attributable to common shares and OP units per share is calculated on a basis consistent with net income attributable to common shares and OP units and reflects adjustments to net income for preferred stock dividends.

The Company 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 period over period, captures trends in occupancy rates, rental rates and operating expenses. The Company also believes that, as a widely recognized measure of the performance of equity REITs, FFO may be used by investors as a basis to compare the Company’s operating performance with that of other REITs. However, because FFO excludes real estate related depreciation and amortization and captures neither the changes in the value of the Company’s properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of the Company’s properties, all of which have real economic effects and could materially impact the Company’s results from operations, the utility of FFO as a measure of the Company’s performance is limited.

While FFO is a relevant and widely used measure of operating performance of equity REITs, other equity REITs may use different methodologies for calculating FFO and, accordingly, FFO as disclosed by such other REITs may not be comparable to the Company’s FFO. Therefore, the Company believes that in order to facilitate a clear understanding of its historical operating results, FFO should be examined in conjunction with net income as presented in the consolidated statements of operations. FFO should not be considered as an alternative to net income or to cash flow from operating activities (each as computed in accordance with GAAP) or as an indicator of the Company’s liquidity, nor is it indicative of funds available to meet the Company’s cash needs, including its ability to pay dividends or make distributions.

The Company also presents FFO with supplemental adjustments to arrive at Adjusted FFO (“AFFO”). AFFO is FFO attributable to common shares and OP units excluding straight-line revenue, non-cash stock based compensation, gain or loss on derivative instruments, acquisition of service agreements, below market lease amortization net of above market lease amortization and early extinguishment of debt costs. AFFO does not represent cash generated from operating activities in accordance with GAAP and therefore should not be considered an alternative to net income as an indicator of the Company’s operating performance or as an alternative to cash flow provided by operations as a measure of liquidity and is not necessarily indicative of funds available to fund the Company’s cash needs including the Company’s ability to pay dividends. In addition, AFFO may not be comparable to similarly titled measurements employed by other companies. The Company’s management uses AFFO in management reports to provide a measure of REIT operating performance that can be compared to other companies using AFFO.

 

- 6 -

---

DUPONT FABROS TECHNOLOGY, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands except share data)

 

		December 31, 2011				December 31, 2010
ASSETS
Income producing property:
Land		$	63,393			$	50,531
Buildings and improvements			2,123,377				1,779,955
			2,186,770				1,830,486
Less: accumulated depreciation			(242,245	)			(172,537	)
Net income producing property			1,944,525				1,657,949
Construction in progress and land held for development			320,611				336,686
Net real estate			2,265,136				1,994,635
Cash and cash equivalents			14,402				226,950
Restricted cash			174				1,600
Rents and other receivables			1,388				3,227
Deferred rent			126,862				92,767
Lease contracts above market value, net			11,352				13,484
Deferred costs, net			40,349				45,543
Prepaid expenses and other assets			31,708				19,245
Total assets		$	2,491,371			$	2,397,451
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Line of credit		$	20,000			$	—
Mortgage notes payable			144,800				150,000
Unsecured notes payable			550,000				550,000
Accounts payable and accrued liabilities			22,955				21,409
Construction costs payable			20,300				67,262
Accrued interest payable			2,528				2,766
Dividend and distribution payable			14,543				12,970
Lease contracts below market value, net			18,313				23,319
Prepaid rents and other liabilities			29,058				22,644
Total liabilities			822,497				850,370
Redeemable noncontrolling interests – operating partnership			461,739				466,823
Commitments and contingencies			—				—
Stockholders’ equity:
Preferred stock, $.001 par value, 50,000,000 shares authorized:
Series A cumulative redeemable perpetual preferred stock, 7,400,000 issued and outstanding at December 31, 2011 and December 31, 2010			185,000				185,000
Series B cumulative redeemable perpetual preferred stock, 4,050,000 issued and outstanding at December 31, 2011 and no shares issued or outstanding at December 31, 2010			101,250				—
Common stock, $.001 par value, 250,000,000 shares authorized, 62,914,987 shares issued and outstanding at December 31, 2011 and 59,827,005 shares issued and outstanding at December 31, 2010			63				60
Additional paid in capital			927,902				946,379
Accumulated deficit			(7,080	)			(51,181	)
Total stockholders’ equity			1,207,135				1,080,258
Total liabilities and stockholders’ equity		$	2,491,371			$	2,397,451

 

- 7 -

---

DUPONT FABROS TECHNOLOGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

		Year ended December 31,
		2011				2010
Cash flow from operating activities
Net income		$	79,480			$	43,708
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization			75,070				62,483
Straight line rent			(34,095	)			(35,403	)
Amortization of deferred financing costs			2,446				3,950
Amortization of lease contracts above and below market value			(2,874	)			(2,505	)
Write-off of deferred financing costs			—				2,547
Compensation paid with Company common shares			5,950				3,803
Changes in operating assets and liabilities
Restricted cash			322				(274	)
Rents and other receivables			1,839				(852	)
Deferred costs			(1,773	)			(2,563	)
Prepaid expenses and other assets			(3,854	)			(7,811	)
Accounts payable and accrued liabilities			(1,238	)			5,083
Accrued interest payable			(238	)			(744	)
Prepaid rents and other liabilities			4,081				5,261
Net cash provided by operating activities			125,116				76,683
Cash flow from investing activities
Investments in real estate – development			(351,090	)			(265,217	)
Land acquisition costs			(9,507	)			—
Marketable securities held to maturity
Purchase			—				(60,000	)
Redemption			—				198,978
Interest capitalized for real estate under development			(27,024	)			(25,177	)
Improvements to real estate			(3,821	)			(2,985	)
Additions to non-real estate property			(304	)			(630	)
Net cash used in investing activities			(391,746	)			(155,031	)
Cash flow from financing activities
Issuance of preferred stock, net of offering costs			97,450				178,620
Issuance of common stock, net of offering costs			—				305,176
Proceeds from line of credit			20,000				—
Mortgage notes payable:
Repayments			(5,200	)			(2,000	)
Lump sum payoffs			—				(196,500	)
Return of escrowed proceeds			1,104				8,896
Exercises of stock options			700				820
Payments of financing costs			(1,338	)			(2,950	)
Dividends and distributions:
Common shares			(29,338	)			(17,796	)
Preferred shares			(19,325	)			—
Redeemable noncontrolling interests – operating partnership			(9,971	)			(7,247	)
Net cash provided by financing activities			54,082				267,019
Net (decrease) increase in cash and cash equivalents			(212,548	)			188,671
Cash and cash equivalents, beginning			226,950				38,279
Cash and cash equivalents, ending		$	14,402			$	226,950
Supplemental information:
Cash paid for interest		$	54,358			$	62,667
Deferred financing costs capitalized for real estate under development		$	1,387			$	1,198
Construction costs payable capitalized for real estate under development		$	20,300			$	67,262
Redemption of OP units for common shares		$	66,500			$	68,000
Adjustments to redeemable noncontrolling interests		$	56,535			$	82,632

 

- 8 -

---

DUPONT FABROS TECHNOLOGY, INC.

Operating Properties

As of December 31, 2011

 

Property		Property Location		Year Built/ Renovated				Gross Building Area (2)				Raised Square Feet (3)				Critical Load MW (4)				% Leased (5)				% Commenced (5)
Stabilized (1)
ACC2		Ashburn, VA			2001/2005				87,000				53,000				10.4				100	%			100	%
ACC3		Ashburn, VA			2001/2006				147,000				80,000				13.9				100	%			100	%
ACC4		Ashburn, VA			2007				347,000				172,000				36.4				100	%			100	%
ACC5		Ashburn, VA			2009-2010				360,000				176,000				36.4				100	%			100	%
CH1 Phase I		Elk Grove Village, IL			2008				285,000				122,000				18.2				98	%			98	%
VA3		Reston, VA			2003				256,000				147,000				13.0				100	%			100	%
VA4		Bristow, VA			2005				230,000				90,000				9.6				100	%			100	%
Subtotal – stabilized									1,712,000				840,000				137.9				99	%			99	%
Completed not Stabilized
NJ1 Phase I		Piscataway, NJ			2010				180,000				88,000				18.2				34	%			34	%
ACC6 Phase I		Ashburn, VA			2011				131,000				66,000				13.0				8	%			8	%
SC1 Phase I (6)		Santa Clara, CA			2011				180,000				88,000				18.2				13	%			13	%
Subtotal – non-stabilized									491,000				242,000				49.4				19	%			19	%
Total Operating Properties									2,203,000				1,082,000				187.3				79	%			79	%

 

(1)	Stabilized operating properties are either 85% or more leased or have been in service for 24 months or greater.

(2)

Gross building area is the entire building area, including raised square footage (the portion of gross building area where the tenants’ computer servers are located), tenant common areas, areas controlled by the Company (such as the mechanical, telecommunications and utility rooms) and, in some facilities, individual office and storage space leased on an as available basis to the tenants.

(3)	Raised square footage is that portion of gross building area where the tenants locate their computer servers. The Company considers raised square footage to be the net rentable square footage in each of its facilities.

(4)	Critical load (also referred to as IT load or load used by tenants’ servers or related equipment) is the power available for exclusive use by tenants expressed in terms of megawatt, or MW, or kilowatt, or kW (1 MW is equal to 1,000 kW).

(5)

Percentage leased is expressed as a percentage of critical load that is subject to an executed lease. Percentage commenced is expressed as a percentage of critical load where the lease has commenced under generally accepted accounting principles. Leases executed as of December 31, 2011 represent $192 million of base rent on a straight-line basis and $190 million on a cash basis over the next twelve months. This excludes contractual management fees and approximately $3 million net amortization increase in revenue of above and below market leases.

(6)	As of February 7, 2012, SC1 Phase I is 25% leased and commenced.

 

- 9 -

---

DUPONT FABROS TECHNOLOGY, INC.

Lease Expirations

As of December 31, 2011

The following table sets forth a summary schedule of lease expirations of the operating properties for each of the ten calendar years beginning with 2012. The information set forth in the table below assumes that tenants exercise no renewal options and takes into account tenants’ early termination options.

 

Year of Lease Expiration		Number of Leases Expiring (1)				Raised Square Feet Expiring (in thousands) (2)				% of Leased Raised Square Feet				Total kW of Expiring Leases (3)				% of Leased kW				% of Annualized Base Rent
2012(4)			2				72				8.2	%			6,878				4.7	%			4.0	%
2013			2				30				3.4	%			3,030				2.1	%			1.0	%
2014			6				35				4.0	%			6,287				4.3	%			4.4	%
2015			6				84				9.5	%			16,250				11.0	%			10.1	%
2016			5				71				8.0	%			11,640				7.9	%			7.8	%
2017			9				86				9.8	%			16,310				11.1	%			11.2	%
2018			6				89				10.1	%			18,152				12.3	%			12.8	%
2019			9				116				13.2	%			21,067				14.3	%			13.6	%
2020			8				82				9.3	%			13,895				9.4	%			10.3	%
2021			7				130				14.7	%			21,669				14.7	%			16.3	%
After 2021			7				87				9.8	%			11,902				8.2	%			8.5	%
Total			67				882				100	%			147,080				100	%			100	%

 

(1)	Represents 31 tenants with 67 lease expiration dates. Top three tenants represent 55% of annualized base rent as of December 31, 2011.

(2)	Raised square footage is that portion of gross building area where the tenants locate their computer servers. The Company considers raised square footage to be the net rentable square footage in each of its facilities.

(3)	One MW is equal to 1,000 kW.

(4)	One lease will expire on April 30, 2012, representing 67,000 raised square feet, 7.6% of leased raised square feet and 5,740 kW of critical load as of December 31, 2011. The second lease has an option to terminate on six months notice.

 

- 10 -

---

DUPONT FABROS TECHNOLOGY, INC.

Development Projects

As of December 31, 2011

($ in thousands)

 

Property		Property Location		Gross Building Area (1)				Raised Square Feet (2)				Critical Load MW (3)				Estimated Total Cost (4)				Construction in Progress & Land Held for Development  (5)				% Pre-Leased
Current Development Projects
CH1 Phase II (6)		Elk Grove Village, IL			200,000				109,000				18.2			$	190,000 - 192,000			$	178,361				79	%
Future Development Projects/Phases
NJ1 Phase II		Piscataway, NJ			180,000				88,000				18.2								39,217
SC1 Phase II		Santa Clara, CA			180,000				88,000				18.2								61,104
ACC6 Phase II		Ashburn, VA			131,000				66,000				13.0								26,085
					491,000				242,000				49.4								126,406
Land Held for Development
ACC7 Phase I /II		Ashburn, VA			360,000				176,000				36.4								10,052
ACC8		Ashburn, VA			100,000				50,000				10.4								3,705
SC2 Phase I/II		Santa Clara, CA			300,000				171,000				36.4								2,087
					760,000				397,000				83.2								15,844
Total					1,451,000				748,000				150.8							$	320,611

 

(1)

Gross building area is the entire building area, including raised square footage (the portion of gross building area where the tenants’ computer servers are located), tenant common areas, areas controlled by the Company (such as the mechanical, telecommunications and utility rooms) and, in some facilities, individual office and storage space leased on an as available basis to the tenants.

(2)	Raised square footage is that portion of gross building area where the tenants locate their computer servers. The Company considers raised square footage to be the net rentable square footage in each of its facilities.

(3)	Critical load (also referred to as IT load or load used by tenants’ servers or related equipment) is the power available for exclusive use by tenants expressed in terms of MW or kW (1 MW is equal to 1,000 kW).

(4)	Current development projects include land, capitalization for construction and development, capitalized interest and capitalized operating carrying costs, as applicable, upon completion.

(5)	Amount capitalized as of December 31, 2011. Future Phase II development projects include only land, shell, underground work and capitalized interest through Phase I opening.

(6)	Placed in service on February 1, 2012 with 57% of leases commencing.

 

- 11 -

---

DUPONT FABROS TECHNOLOGY, INC.

Debt Summary as of December 31, 2011

($ in thousands)

 

		Amounts				% of Total				Rates (1)				Maturities (years)
Secured		$	144,800				20	%			3.3	%			2.9
Unsecured			570,000				80	%			8.3	%			5.1
Total		$	714,800				100	%			7.3	%			4.7
Fixed Rate Debt:
Unsecured Notes		$	550,000				77	%			8.5	%			5.3
Fixed Rate Debt			550,000				77	%			8.5	%			5.3
Floating Rate Debt:
Unsecured Credit Facility (2)			20,000				3	%			3.5	%			1.3
ACC5 Term Loan			144,800				20	%			3.3	%			2.9
Floating Rate Debt			164,800				23	%			3.3	%			2.7
Total		$	714,800				100	%			7.3	%			4.7

 

Note:

The Company capitalized interest and deferred financing cost amortization of $3.3 million and $28.4 million during the three and twelve months ended December 31, 2011, respectively.

(1)	Rates as of December 31, 2011.

(2)	Repaid in full on January 19, 2012.

Debt Maturity as of December 31, 2011

($ in thousands)

 

Year		Fixed Rate				Floating Rate				Total				% of Total				Rates (4)
2012			—				5,200	(2)			5,200				0.7	%			3.3	%
2013			—				25,200	(2)(3)			25,200				3.5	%			3.5	%
2014			—				134,400	(2)			134,400				18.8	%			3.3	%
2015			125,000	(1)			—				125,000				17.5	%			8.5	%
2016			125,000	(1)			—				125,000				17.5	%			8.5	%
2017			300,000	(1)			—				300,000				42.0	%			8.5	%
Total		$	550,000			$	164,800			$	714,800				100	%			7.3	%

 

(1)	The Unsecured Notes have mandatory amortizations of $125.0 million due in 2015, $125.0 million due in 2016 and $300.0 million due in 2017.

(2)	The ACC5 Term Loan matures on December 2, 2014 with no extension option and requires quarterly principal payments of $1.3 million through maturity.

(3)	The Unsecured Credit Facility matures on May 6, 2013 with a one-year extension option. The $20 million outstanding as of December 31, 2011 was repaid in full on January 19, 2012.

(4)	Rates as of December 31, 2011.

 

- 12 -

---

DUPONT FABROS TECHNOLOGY, INC.

Selected Unsecured Debt Metrics

 

		12/31/11				12/31/10
Interest Coverage Ratio (not less than 2.0)			3.5				2.8
Total Debt to Gross Asset Value (not to exceed 60%)			26.3	%			27.4	%
Secured Debt to Total Assets (not to exceed 40%)			5.3	%			5.9	%
Total Unsecured Assets to Unsecured Debt (not less than 150%)			329.5	%			308.8	%

These selected metrics relate to DuPont Fabros Technology, LP’s outstanding unsecured debt. DuPont Fabros Technology, Inc. is the general partner of DuPont Fabros Technology, LP.

Capital Structure as of December 31, 2011

(in thousands except per share data)

 

Line of Credit														$	20,000
Mortgage Notes Payable															144,800
Unsecured Notes															550,000
Total Debt															714,800				23.9	%
Common Shares			77	%			62,915
Operating Partnership (“OP”) Units			23	%			19,064
Total Shares and Units			100	%			81,979
Common Share Price at December 31, 2011						$	24.22
Common Share and OP Unit Capitalization										$	1,985,531
Preferred Stock ($25 per share liquidation preference)											286,250
Total Equity															2,271,781				76.1	%
Total Market Capitalization														$	2,986,581				100.0	%

 

- 13 -

---

DUPONT FABROS TECHNOLOGY, INC.

Common Share and OP Unit

Weighted Average Amounts Outstanding

 

		Q4 2011				Q4 2010				YTD Q4 2011				YTD Q4 2010
Weighted Average Amounts Outstanding for EPS Purposes:
Common Shares – basic Shares issued from assumed conversion of:			62,217,754				59,055,307				61,241,520				52,800,712
- Restricted Shares			264,933				418,938				267,593				409,563
- Stock Options			759,601				836,157				794,792				882,428
Total Common Shares – diluted			63,242,288				60,310,402				62,303,905				54,092,703
Weighted Average Amounts Outstanding for FFO and AFFO Purposes:
Common Shares – basic			62,217,754				59,055,307				61,241,520				52,800,712
OP Units – basic			19,254,830				22,082,349				20,145,522				22,993,156
Total Common Shares and OP Units			81,472,584				81,137,656				81,387,042				75,793,868
Shares and OP Units issued from assumed conversion of:
- Restricted Shares			264,933				418,938				267,593				409,563
- Stock Options			759,601				836,157				794,792				882,428
Total Common Shares and Units – diluted			82,497,118				82,392,751				82,449,427				77,085,859
Period Ending Amounts Outstanding:
Common Shares			62,914,987
OP Units			19,064,381
Total Common Shares and Units			81,979,368

 

- 14 -

---

DUPONT FABROS TECHNOLOGY, INC.

2012 Guidance

The earnings guidance/projections provided below are based on current expectations and are forward-looking.

 

		Expected Q1 2012 per share				Expected 2012 per share
Net income per common share and unit – diluted		$	0.05 to $0.09			$	0.25 to $0.43
Depreciation and amortization, net			0.26				1.06 to 1.08
FFO per share – diluted (1)		$	0.31 to $0.35			$	1.31 to $1.51

2012 Debt Assumptions

 

Weighted average debt outstanding		$	692.5 million
Weighted average interest rate			7.58%
Total interest costs		$	52.5 million
Amortization of deferred financing costs			3.7 million
Interest expense capitalized			(1.2) million
Deferred financing costs amortization capitalized			(0.2) million
Total interest expense after capitalization		$	54.8 million

2012 Other Guidance Assumptions

 

Total revenues		$315 to $340 million
Base rent (included in total revenues)		$215 to $230 million
Straight-line revenues (included in base rent)		$15 to $25 million
General and administrative expense		$19 million
Investments in real estate – development (2)		$35 million
Improvements to real estate excluding development		$4 million
Preferred stock dividends		$27 million
Current common stock dividend distribution payout		$0.48 per share
Weighted average common shares and OP units – diluted		83 million

 

(1)

Funds from operations, or FFO, is used by industry analysts and investors as a supplemental operating performance measure for REITs. The Company calculates FFO in accordance with the definition that was adopted by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. FFO, as defined by NAREIT, represents net income determined in accordance with GAAP, excluding extraordinary items as defined under GAAP, impairment charges on depreciable real estate assets and gains or losses from sales of previously depreciated operating real estate assets, plus specified non-cash items, such as real estate asset depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. The Company also presents FFO attributable to common shares and OP units, which is FFO excluding preferred stock dividends. FFO attributable to common shares and OP units per share is calculated on a basis consistent with net income attributable to common shares and OP units and reflects adjustments to net income for preferred stock dividends.

The Company 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 period over period, captures trends in occupancy rates, rental rates and operating expenses. The Company also believes that, as a widely recognized measure of the performance of equity REITs, FFO may be used by investors as a basis to compare the Company’s operating performance with that of other REITs. However, because FFO excludes real estate related depreciation and amortization and captures neither the changes in the value of the Company’s properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of the Company’s properties, all of which have real economic effects and could materially impact the Company’s results from operations, the utility of FFO as a measure of the Company’s performance is limited.

While FFO is a relevant and widely used measure of operating performance of equity REITs, other equity REITs may use different methodologies for calculating FFO and, accordingly, FFO as disclosed by such other REITs may not be comparable to the Company’s FFO. Therefore, the Company believes that in order to facilitate a clear understanding of its historical operating results, FFO should be examined in conjunction with net income as presented in the consolidated statements of operations. FFO should not be considered as an alternative to net income or to cash flow from operating activities (each as computed in accordance with GAAP) or as an indicator of the Company’s liquidity, nor is it indicative of funds available to meet the Company’s cash needs, including its ability to pay dividends or make distributions.

 

(2)	Consists primarily of costs to complete CH1 Phase II; assumes no new developments are commenced in 2012.

 

- 15 -