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Press Release -- February 7th, 2012
Source: Dupont Fabros Technology
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DuPont Fabros Technology, Inc. Reports 2011 Results

Revenues up 13% Quarter over Quarter and 19% Year Over Year Provides Outlook for 2012 Performance

WASHINGTON, Feb. 7, 2012 /PRNewswire/ -- DuPont Fabros Technology, Inc. (NYSE: DFT - News) 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.

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, Virginia 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.

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 - News) 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.

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.

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.

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
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.
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
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
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.

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.

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.

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.

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  %
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
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.

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