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Press Release -- February 15th, 2018
Source: Digital Realty Trust
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Digital Realty Reports Fourth Quarter And Full-Year 2017 Results

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Digital Realty Reports Fourth Quarter And Full-Year 2017 Results

February 15, 2018
Download this Press Release (PDF 212 KB)

SAN FRANCISCO, Feb. 15, 2018 /PRNewswire/ — Digital Realty (NYSE:DLR, news, filings), a leading global provider of data center, colocation and interconnection solutions, announced today financial results for the fourth quarter and full-year 2017. All per-share results are presented on a fully-diluted share and unit basis.

Highlights

Reported net income available to common stockholders of $0.26 per share in 4Q17, compared to $0.49 in 4Q16
Reported net income available to common stockholders of $0.99 per share for the full year of 2017, compared to $2.20 in 2016
Reported FFO per share of $1.48 in 4Q17, compared to $1.58 in 4Q16
Reported FFO per share of $5.65 for the full year of 2017, compared to $5.67 in 2016
Reported core FFO per share of $1.55 in 4Q17, compared to $1.43 in 4Q16
Reported core FFO per share of $6.14 for the full year of 2017, compared to $5.72 in 2016
Signed total bookings during 4Q17 expected to generate $56 million of annualized GAAP rental revenue, including a $6 million contribution from interconnection, bringing the full-year 2017 total bookings to $199 million
Reiterated 2018 core FFO per share outlook of $6.45 – $6.60
Financial Results

Digital Realty reported revenues for the fourth quarter of 2017 of $731 million, a 20% increase from the previous quarter and a 27% increase from the same quarter last year. For the full-year 2017, the company reported revenues of $2.5 billion, a 15% increase over 2016.

The company delivered fourth quarter of 2017 net income of $80 million, and net income available to common stockholders of $53 million, or $0.26 per diluted share, compared to a net loss available to common stockholders of ($0.02) per diluted share in the previous quarter and net income available to common stockholders of $0.49 per diluted share in the same quarter last year. For the full-year 2017, Digital Realty delivered net income of $256 million and net income available to common stockholders of $173 million, or $0.99 per diluted share, compared to $2.20 per diluted share for 2016.

Digital Realty generated fourth quarter of 2017 adjusted EBITDA of $428 million, a 22% increase from the previous quarter and a 37% increase over the same quarter last year. For the full-year 2017, the company generated adjusted EBITDA of $1.4 billion, an 18% increase over 2016.

The company reported fourth quarter of 2017 funds from operations (“FFO”) of $317 million, or $1.48 per share, compared to $1.23 per share in the previous quarter and $1.58 per share in the same quarter last year. For the full-year 2017, Digital Realty reported FFO per share of $5.65 compared to $5.67 in 2016.

Excluding certain items that do not represent core expenses or revenue streams, Digital Realty delivered fourth quarter of 2017 core FFO of $1.55 per share, a 3% increase from $1.51 per share in the previous quarter, and an 8% increase from $1.43 per share in the same quarter last year. For the full-year 2017, the company delivered core FFO per share of $6.14, a 7% increase from $5.72 per share in 2016.

Leasing Activity

“We closed the year on solid footing, with total bookings of $56 million of annualized GAAP rental revenue in the fourth quarter of 2017, including a $6 million contribution from interconnection,” said Chief Executive Officer A. William Stein. “We delivered consistent results throughout 2017, while strategically expanding our global platform to ensure we are uniquely well-positioned to capture a growing share of customer demand. Looking ahead to 2018, we see robust global demand driven by the second wave of cloud, particularly in our core major metropolitan areas around the world. The strength of our global, connected platform provides the framework for our expectation of delivering sustainable growth for our customers, shareholders and employees in 2018 and beyond.”

The weighted-average lag between leases signed during the fourth quarter of 2017 and the contractual commencement date was eight months.

In addition to new leases signed, Digital Realty also signed renewal leases representing $64 million of annualized GAAP rental revenue during the quarter. Rental rates on renewal leases signed during the fourth quarter of 2017 rolled up 2.3% on a cash basis and up 5.7% on a GAAP basis.

New leases signed during the fourth quarter of 2017 by region and product type are summarized as follows:

North America

Annualized GAAP
Based Rent
(in thousands)

Square Feet

GAAP Base Rent
per Square Foot

Megawatts

GAAP Base Rent
per Kilowatt
Turn-Key Flex

$31,368

218,567

$144

23

$113

Colocation

8,625

33,634

256

2

333

Non-Technical

100

1,900

52

Total

$40,093

254,101

$158

25

$132

Europe (1)

Turn-Key Flex

$2,478

8,928

$278

1

$155

Colocation

581

1,036

561

0

375

Total

$3,059

9,964

$307

1

$175

Asia Pacific (1)

Turn-Key Flex

$6,345

41,675

$152

3

$155

Non-Technical

47

1,453

33

Total

$6,392

43,128

$148

3

$155

Interconnection

$6,301

N/A

N/A

N/A

N/A

Grand Total

$55,845

307,193

$161

30

$137

Note:
Totals may not foot due to rounding differences.

(1)
Based on quarterly average exchange rates during the three months ended December 31, 2017.

Investment Activity

During the fourth quarter of 2017, Digital Realty entered into a 50/50 joint venture with Mitsubishi Corporation to provide data center solutions in Japan. Mitsubishi Corporation contributed two existing data center facilities in the western Tokyo suburb of Mitaka, while Digital Realty contributed its recently completed data center development project in Osaka. The three seed assets were collectively valued at approximately 40 billion Japanese Yen, or approximately $350 million.

Likewise during the fourth quarter of 2017, Digital Realty acquired a 250,000 square foot data center on a 19-acre site in suburban Chicago, approximately four miles from the company’s Franklin Park campus, for a purchase price of $315 million. Roughly three-fourths of the building has been developed and is fully leased, and the property is expected to generate cash net operating income of approximately $22 million in 2018, representing a 7% going-in cap rate. The remaining 65,000 square feet of shell space is available for build-out of approximately eight megawatts of critical load from a dedicated, on-site sub-station.

Digital Realty also acquired a 132,000 square foot multi-story parking garage adjacent to the company’s highly connected Sovereign House data center in London for a purchase price of £22 million, or approximately $30 million. The parking garage is expected to generate cash net operating income of £0.8 million, or approximately $1 million, representing a 4% cap rate on in-place parking income. Digital Realty leased space within the parking garage to house critical Sovereign House equipment. This acquisition secures the company’s position beyond the expiration of its previous parking garage lease in 2026.

Separately, Digital Realty acquired a 1.4-acre land parcel adjacent to 350 E. Cermak in Chicago, IL for a purchase price of $25 million. The site is expected to support the development of a 12-story, 720,000 square foot data center with up to 34 megawatts of critical power. Commencement of development will be subject to market demand, and delivery will be phased to facilitate customer expansion requirements.

During the fourth quarter of 2017, Digital Realty closed on the sale of 44874 Moran Road, a 78,000 square foot data center in Sterling, VA for $34 million. The property was 100% leased and was expected to generate cash net operating income of approximately $3 million in 2017, representing an exit cap rate of 7%. The property was held in a consolidated joint venture, in which Digital Realty owned a 75% stake. The sale generated net proceeds of $34 million, and Digital Realty recognized a gain on the sale of approximately $12 million, net of non-controlling interests, during the fourth quarter.

Likewise during the fourth quarter of 2017, Digital Realty closed on the sale of 1 Solutions Parkway, a 156,000 square foot suburban office building in St. Louis, MO for $37 million. The property was 100% leased to a single tenant and was expected to generate cash net operating income of approximately $3 million in 2017, representing an exit cap rate of 7%. The sale generated net proceeds of $35 million, and Digital Realty recognized a gain on the sale of approximately $15 million.

Subsequent to the end of the quarter, Digital Realty closed on the sale of 34551 Ardenwood Boulevard, a 323,000 square foot technology manufacturing property in Fremont, CA for $73 million. The property was 86% leased and was expected to generate cash net operating income of approximately $5 million in 2018, representing an exit cap rate of 7%. The sale generated net proceeds of $72 million, and Digital Realty recognized a gain on the sale of approximately $25 million in the first quarter of 2018.

Subsequent to the end of the quarter, Digital Realty also closed on the sale of 200 Quannapowitt Parkway, a substantially vacant, 211,000 square foot data center redevelopment project in Wakefield, MA for $15 million. The sale generated net proceeds of $15 million, and Digital Realty recognized a loss on the sale of approximately $0.4 million in the first quarter of 2018.

Balance Sheet

Digital Realty had approximately $8.6 billion of total debt outstanding as of December 31, 2017, substantially all of which was unsecured. At the end of the fourth quarter of 2017, net debt-to-adjusted EBITDA was 5.2x, debt-plus-preferred-to-total enterprise value was 28.9% and fixed charge coverage was 4.2x.

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures, including FFO, core FFO, and Adjusted EBITDA. A reconciliation from U.S. GAAP net income available to common stockholders to FFO, a reconciliation from FFO to core FFO, and definitions of FFO, and core FFO are included as an attachment to this document. A reconciliation from U.S. GAAP net income available to common stockholders to Adjusted EBITDA, a definition of Adjusted EBITDA and definitions of net debt-to-Adjusted EBITDA, debt-plus-preferred-to-total enterprise value, cash NOI, and fixed charge coverage ratio are included as an attachment to this document.

Investor Conference Call

Prior to Digital Realty’s investor conference call at 5:30 p.m. EST / 2:30 p.m. PST on February 15, 2018, a presentation will be posted to the Investors section of the company’s website at http://investor.digitalrealty.com. The presentation is designed to accompany the discussion of the company’s fourth quarter and full-year 2017 financial results and operating performance. The conference call will feature Chief Executive Officer A. William Stein and Chief Financial Officer Andrew P. Power.

To participate in the live call, investors are invited to dial (888) 317-6003 (for domestic callers) or (412) 317-6061 (for international callers) and reference the conference ID# 6927108 at least five minutes prior to start time. A live webcast of the call will be available via the Investors section of Digital Realty’s website at http://investor.digitalrealty.com.

Telephone and webcast replays will be available after the call until March 16, 2018. The telephone replay can be accessed by dialing (877) 344-7529 (for domestic callers) or (412) 317-0088 (for international callers) and providing the conference ID# 10114216. The webcast replay can be accessed on Digital Realty’s website.

About Digital Realty

Digital Realty supports the data center, colocation and interconnection strategies of more than 2,300 firms across its secure, network-rich portfolio of data centers located throughout North America, Europe, Asia and Australia. Digital Realty’s clients include domestic and international companies of all sizes, ranging from financial services, cloud and information technology services, to manufacturing, energy, gaming, life sciences and consumer products.

Additional information about Digital Realty is included in the Company Overview, available on the Investors page of Digital Realty’s website at www.digitalrealty.com. The Company Overview is updated periodically, and may contain material information and updates. To receive e-mail alerts when the Company Overview is updated, please visit the Investors page of Digital Realty’s website.

Contact Information

Andrew P. Power
Chief Financial Officer
Digital Realty
(415) 738-6500

John J. Stewart / Maria S. Lukens
Investor Relations
Digital Realty
(415) 738-6500

2018 Outlook

Digital Realty reiterated its 2018 core FFO per share outlook of $6.45 – $6.60. The assumptions underlying this guidance are summarized in the following table.

As of
As of
Top-Line and Cost Structure
January 8, 2018
February 15, 2018
2018 total revenue
$3.0 – $3.2 billion
$3.0 – $3.2 billion
2018 net non-cash rent adjustments (1)
($5 – $15 million)
($5 – $15 million)
2018 Adjusted EBITDA margin
58.0% – 60.0%
58.0% – 60.0%
2018 G&A margin
5.5% – 6.5%
5.5% – 6.5%

Internal Growth

Rental rates on renewal leases

Cash basis
Slightly negative
Slightly negative
GAAP basis
Up mid-single-digits
Up mid-single-digits
Year-end portfolio occupancy
+/- 50 bps
+/- 50 bps
“Same-capital” cash NOI growth (2)
0% – 3.0%
0% – 3.0%

Foreign Exchange Rates

U.S. Dollar / Pound Sterling
$1.28 – $1.32
$1.28 – $1.32
U.S. Dollar / Euro
$1.10 – $1.20
$1.10 – $1.20

External Growth

Dispositions

Dollar volume
$0 – $200 million
$88 – $200 million
Cap rate
0.0% – 10.0%
0.0% – 10.0%
Development

CapEx
$0.9 – $1.1 billion
$0.9 – $1.1 billion
Average stabilized yields
10.0% – 12.0%
10.0% – 12.0%
Enhancements and other non-recurring CapEx (3)
$25 – $30 million
$25 – $30 million
Recurring CapEx + capitalized leasing costs (4)
$160 – $170 million
$160 – $170 million

Balance Sheet

Long-term debt issuance

Dollar amount
$0 – $500 million
$0 – $500 million
Pricing
3.25% – 4.25%
3.25% – 4.25%
Timing
Mid-to-late 2018
Mid-to-late 2018

Net income per diluted share
$1.50 – $1.55
$1.50 – $1.55
Real estate depreciation and (gain)/loss on sale
$4.90 – $4.95
$4.90 – $4.95
Funds From Operations / share (NAREIT-Defined)
$6.40 – $6.50
$6.40 – $6.50
Non-core expenses and revenue streams
$0.05 – $0.10
$0.05 – $0.10
Core Funds From Operations / share
$6.45 – $6.60
$6.45 – $6.60

(1)
Net non-cash rent adjustments represent the sum of straight-line rental revenue, straight-line rent expense as well as the amortization of above- and below-market leases (i.e., FAS 141 adjustments).
(2)
The “same-capital” pool includes buildings owned as of December 31, 2016 with less than 5% of the total rentable square feet under development. It also excludes buildings that were undergoing, or were expected to undergo, development activities in 2017-2018, buildings classified as held for sale, and buildings sold or contributed to joint ventures for all periods presented.
(3)
Other non-recurring CapEx represents costs incurred to enhance the capacity or marketability of operating data centers, such as network fiber initiatives and software development costs.
(4)
Recurring CapEx represents non-incremental improvements required to maintain current revenues, including second-generation tenant improvements and leasing commissions. Capitalized leasing costs include capitalized leasing compensation as well as capitalized internal leasing commissions.
Safe Harbor Statement

This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to the merger with DuPont Fabros Technology, Inc.; supply and demand for data center and colocation space; the expected timing, benefits and development of recent land acquisitions; impairment losses; our joint venture in Japan; our global platform; acquisition and disposition activity, including transactions which are under agreement but subject to closing conditions; market dynamics and data center fundamentals; our strategic priorities; rent from leases that have been signed but have not yet commenced and other contracted rent to be received in future periods; rental rates on future leases; lag between signing and commencement; cap rates and yields; investment activity; expected capital markets activity; and the company’s FFO, core FFO and net income outlook and underlying assumptions. These risks and uncertainties include, among others, the following: the impact of current global economic, credit and market conditions; current local economic conditions in the metropolitan areas in which we operate; decreases in information technology spending, including as a result of economic slowdowns or recession; adverse economic or real estate developments in our industry or the industry sectors that we sell to (including risks relating to decreasing real estate valuations and impairment charges); our dependence upon significant tenants; bankruptcy or insolvency of a major tenant or a significant number of smaller tenants; defaults on or non-renewal of leases by tenants; our failure to obtain necessary debt and equity financing; risks associated with using debt to fund our business activities, including re-financing and interest rate risks, our failure to repay debt when due, adverse changes in our credit ratings or our breach of covenants or other terms contained in our loan facilities and agreements; financial market fluctuations; changes in foreign currency exchange rates; our inability to manage our growth effectively; difficulty acquiring or operating properties in foreign jurisdictions; our failure to successfully integrate and operate acquired or developed properties or businesses; the suitability of our properties and data center infrastructure, delays or disruptions in connectivity, failure of our physical and information security infrastructure or services or availability of power; risks related to joint venture investments, including as a result of our lack of control of such investments; delays or unexpected costs in development of properties; decreased rental rates, increased operating costs or increased vacancy rates; increased competition or available supply of data center space; our inability to successfully develop and lease new properties and development space; difficulties in identifying properties to acquire and completing acquisitions; our inability to acquire off-market properties; the impact of the United Kingdom’s referendum on withdrawal from the European Union on global financial markets and our business; our inability to comply with the rules and regulations applicable to reporting companies; our failure to maintain our status as a REIT; possible adverse changes to tax laws; restrictions on our ability to engage in certain business activities; environmental uncertainties and risks related to natural disasters; losses in excess of our insurance coverage; changes in foreign laws and regulations, including those related to taxation and real estate ownership and operation; and changes in local, state and federal regulatory requirements, including changes in real estate and zoning laws and increases in real property tax rates. For a further list and description of such risks and uncertainties, see the reports and other filings by the company with the U.S. Securities and Exchange Commission, including the company’s Annual Report on Form 10-K for the year ended December 31, 2016 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2017, June 30, 2017 and September 30, 2017. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Consolidated Quarterly Statements of Operations
Unaudited and in thousands, except share and per share data

Three Months Ended

Twelve Months Ended

31-Dec-17
30-Sep-17
30-Jun-17
31-Mar-17
31-Dec-16

31-Dec-17
31-Dec-16
Rental revenues
$517,356

$440,591

$412,576

$404,126

$399,062

$1,774,649

$1,542,511

Tenant reimbursements – Utilities
97,657

78,134

68,407

63,398

63,956

307,596

253,442

Tenant reimbursements – Other
54,324

29,479

24,935

23,890

23,853

132,628

102,461

Interconnection & other
60,275

59,851

58,301

57,225

55,094

235,652

204,317

Fee income
1,386

1,662

1,429

1,895

1,718

6,372

6,285

Other
447

208

341

35

33,104

1,031

33,197

Total Operating Revenues
$731,445

$609,925

$565,989

$550,569

$576,787

$2,457,928

$2,142,213

Utilities
$112,055

$95,619

$82,739

$77,198

$76,896

$367,611

$306,261

Rental property operating
113,445

94,442

91,977

92,141

92,372

392,005

353,916

Property taxes
36,348

32,586

28,161

26,919

27,097

124,014

102,497

Insurance
3,223

2,590

2,576

2,592

2,369

10,981

9,492

Depreciation & amortization
287,973

199,914

178,111

176,466

176,581

842,464

699,324

General & administrative
44,311

41,477

37,144

33,778

40,481

156,710

146,525

Severance, equity acceleration, and legal expenses
1,209

2,288

365

869

672

4,731

6,208

Transaction and integration expenses
15,681

42,809

14,235

3,323

8,961

76,048

20,491

Impairment of investments in real estate

28,992

28,992

Other expenses
2

3,051

24

236

3,077

213

Total Operating Expenses
$614,247

$543,768

$435,332

$413,286

$425,665

$2,006,633

$1,644,927

Operating Income
$117,198

$66,157

$130,657

$137,283

$151,122

$451,295

$497,286

Equity in earnings of unconsolidated joint ventures
$5,924

$5,880

$8,388

$5,324

$4,742

$25,516

$17,104

Gain (loss) on real estate transactions
30,746

9,751

380

(522)

(195)

40,355

169,902

Interest and other income
324

2,813

367

151

(970)

3,655

(4,564)

Interest (expense)
(73,989)

(71,621)

(57,582)

(55,450)

(56,226)

(258,642)

(236,480)

Tax (expense)
(545)

(2,494)

(2,639)

(2,223)

(2,304)

(7,901)

(10,385)

Gain (loss) from early extinguishment of debt

1,990

(29)

1,990

(1,011)

Net Income
$79,658

$12,476

$79,571

$84,563

$96,140

$256,268

$431,852

Net (income) attributable to non-controlling interests
(6,023)

(40)

(920)

(1,025)

(1,065)

(8,008)

(5,665)

Net Income Attributable to Digital Realty Trust, Inc.
$73,635

$12,436

$78,651

$83,538

$95,075

$248,260

$426,187

Preferred stock dividends, including undeclared dividends
(20,329)

(16,575)

(14,505)

(17,393)

(17,393)

(68,802)

(83,771)

Issuance costs associated with redeemed preferred stock

(6,309)

(6,309)

(10,328)

Net (Loss) Income Available to Common Stockholders
$53,306

($4,139)

$57,837

$66,145

$77,682

$173,149

$332,088

Weighted-average shares outstanding – basic
205,448,689

170,194,254

160,832,889

159,297,027

158,956,606

174,059,386

149,953,662

Weighted-average shares outstanding – diluted
206,185,084

170,194,254

161,781,868

160,421,655

159,699,411

174,895,098

150,679,688

Weighted-average fully diluted shares and units
214,424,363

174,169,511

164,026,578

162,599,529

162,059,914

178,891,648

153,085,706

Net (loss) income per share – basic
$0.26

($0.02)

$0.36

$0.42

$0.49

$0.99

$2.21

Net (loss) income per share – diluted
$0.26

($0.02)

$0.36

$0.41

$0.49

$0.99

$2.20

Funds From Operations and Core Funds From Operations
Unaudited and in thousands, except per share data

Reconciliation of Net Income to Funds From Operations (FFO)
Three Months Ended

Twelve Months Ended
31-Dec-17
30-Sep-17
30-Jun-17
31-Mar-17
31-Dec-16

31-Dec-17
31-Dec-16

Net (Loss) Income Available to Common Stockholders
$53,306

($4,139)

$57,837

$66,145

$77,682

$173,149

$332,088

Adjustments:

Non-controlling interests in operating partnership
2,138

(79)

807

904

1,154

3,770

5,298

Real estate related depreciation & amortization (1)
284,924

196,871

175,010

173,447

173,523

830,252

682,810

Impairment charge related to Telx trade name

6,122

Unconsolidated JV real estate related depreciation & amortization
3,323

2,732

2,754

2,757

2,823

11,566

11,246

(Gain) loss on real estate transactions
(30,746)

(9,751)

(380)

522

195

(40,355)

(169,902)

Non-controlling interests share of gain on sale of property
3,900

3,900

Impairment of investments in real estate

28,992

28,992

Funds From Operations
$316,845

$214,626

$236,028

$243,775

$255,377

$1,011,274

$867,662

Funds From Operations – diluted
$316,845

$214,626

$236,028

$243,775

$255,377

$1,011,274

$867,662

Weighted-average shares and units outstanding – basic
213,688

173,461

163,078

161,475

161,317

178,056

152,360

Weighted-average shares and units outstanding – diluted (2)
214,424

174,170

164,027

162,600

162,060

178,892

153,086

Funds From Operations per share – basic
$1.48

$1.24

$1.45

$1.51

$1.58

$5.68

$5.69

Funds From Operations per share – diluted (2)
$1.48

$1.23

$1.44

$1.50

$1.58

$5.65

$5.67

Three Months Ended

Twelve Months Ended
Reconciliation of FFO to Core FFO
31-Dec-17
30-Sep-17
30-Jun-17
31-Mar-17
31-Dec-16

31-Dec-17
31-Dec-16

Funds From Operations – diluted
$316,845

$214,626

$236,028

$243,775

$255,377

$1,011,274

$867,662

Adjustments:

Termination fees and other non-core revenues (3)
(447)

(208)

(341)

(35)

(33,104)

(1,031)

(33,197)

Transaction and integration expenses
15,681

42,809

14,235

3,323

8,961

76,048

20,491

Gain (loss) from early extinguishment of debt

(1,990)

29

(1,990)

1,011

Issuance costs associated with redeemed preferred stock

6,309

6,309

10,328

Equity in earnings adjustment for non-core items

(3,285)

(3,285)

Severance, equity acceleration, and legal expenses (4)
1,209

2,288

365

869

672

4,731

6,208

Bridge facility fees (5)

3,182

3,182

Loss on currency forwards

3,082

Other non-core expense adjustments
2

3,051

24

236

3,077

213

Core Funds From Operations – diluted
$333,290

$263,758

$253,335

$247,932

$232,171

$1,098,315

$875,798

Weighted-average shares and units outstanding – diluted (2)
214,424

174,170

164,027

162,600

162,060

178,892

153,086

Core Funds From Operations per share – diluted (2)
$1.55

$1.51

$1.54

$1.52

$1.43

$6.14

$5.72

(1) Real Estate Related Depreciation & Amortization:
Three Months Ended

Twelve Months Ended

31-Dec-17
30-Sep-17
30-Jun-17
31-Mar-17
31-Dec-16

31-Dec-17
31-Dec-16

Depreciation & amortization per income statement
$287,973

$199,914

$178,111

$176,466

$176,581

$842,464

$699,324

Non-real estate depreciation
(3,049)

(3,043)

(3,101)

(3,019)

(3,058)

(12,212)

(10,392)

Impairment charge related to Telx trade name

(6,122)

Real Estate Related Depreciation & Amortization
$284,924

$196,871

$175,010

$173,447

$173,523

$830,252

$682,810

(2)
For all periods presented, we have excluded the effect of dilutive series C, series E, series F, series G, series H, series I and series J preferred stock, as applicable, that may be converted into common stock upon the occurrence of specified change in control transactions as described in the articles supplementary governing the series C, series E, series F, series G, series H, series I, and series J preferred stock, as applicable, which we consider highly improbable. See above for calculations of diluted FFO available to common stockholders and unitholders and below for calculations of weighted average common stock and units outstanding.
(3)
Includes lease termination fees and certain other adjustments that are not core to our business.
(4)
Relates to severance and other charges related to the departure of company executives and integration-related severance.
(5)
Bridge facility fees are included in interest expense.

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