Digital Realty Trust, Inc. Reports Second Quarter 2009 Results

Strong performance yields 22% year-over-year growth in FFO per diluted share
and unit

SAN FRANCISCO, July 30 /PRNewswire-FirstCall/ -- Digital Realty Trust, Inc.
(NYSE: DLR), the leading owner and manager of corporate and Internet gateway
datacenter facilities, today announced financial results for the second
quarter of 2009. The Company reported total operating revenues of $155.0
million in the second quarter of 2009, up 4.0% from $149.1 million in the
first quarter of 2009 and up 25.2% from $123.8 million in the second quarter
of 2008.

"There were no material non-recurring items impacting FFO or net income in the
quarters ended June 30 and March 31, 2009 and June 30, 2008. Our strong
financial performance is the result of operations," said A. William Stein,
Chief Financial Officer and Chief Investment Officer of Digital Realty Trust.
"In addition, our board of directors approved an increase to our common stock
dividend by 9.1%, or $0.03 to $0.36 per quarter. The decision to increase the
dividend a quarter earlier than we have in previous years was in anticipation
of increasing REIT taxable income and distribution requirements for 2009."

Funds from operations ("FFO") on a diluted basis was $70.4 million in the
second quarter of 2009, or $0.71 on a diluted per share and unit basis, up
1.4% from $0.70 per diluted share and unit in the previous quarter, and up
22.4% from $0.58 per diluted share and unit in the second quarter of 2008.

Net income for the second quarter was $21.2 million, unchanged from first
quarter of 2009 and up 55.9% from $13.6 million in the second quarter of 2008.
Net income available to common stockholders in the second quarter was $10.3
million, or $0.13 per diluted share, compared to $10.3 million, or $0.14 per
diluted share in the first quarter of 2009, and up from $3.1 million, or $0.05
per diluted share in the second quarter of 2008.

"We are pleased to report that the Company delivered another strong
performance in the second quarter. The ongoing demand for datacenter space
combined with our business model and strong balance sheet continued to produce
positive results for our shareholders," commented Michael F. Foust, Chief
Executive Officer of Digital Realty Trust. "We are well-positioned to meet
our expectations for the year and we remain focused on continuing our growth
into 2010."

On January 1, 2009, the Company adopted FASB Staff Position No. APB 14-1,
Accounting for Convertible Debt Instruments that may be Settled in Cash upon
Conversion (Including Partial Cash Settlement), which was required to be
applied retrospectively. Accordingly, net income for all historical periods
since the issuance of the 4.125% Senior Exchangeable Debentures in August 2006
has been retrospectively adjusted. For example, the quarter ended June 30,
2008 has been adjusted to include $0.6 million of additional noncash interest
expense, net of capitalized interest and allocation to noncontrolling
interests. The effect is a decrease in FFO on a diluted share and unit basis
by $0.01 for the quarter ended June 30, 2008.

FFO is a supplemental non-GAAP financial measure used by the real estate
industry to measure the operating performance of real estate companies. FFO
should not be considered as a substitute for net income determined in
accordance with U.S. GAAP as a measure of financial performance. A
reconciliation of U.S. GAAP net income available to common stockholders to FFO
and a definition of FFO are included as an attachment to this press release.

Acquisitions and Leasing Activity

In May, the Company acquired four contiguous parcels of land, one of which
includes an important utility substation, totaling 34.2 acres located adjacent
to its existing datacenter facilities in Ashburn, Virginia. The new parcels
increase the potential capacity of the campus by more than 400,000 square
feet. In June, construction of a 135,000 square foot datacenter facility
commenced on the first parcel. Designed to meet Digital Realty Trust's
specifications, the facility will ultimately support four 2250 kW Turn-Key
Datacenter(SM) pods totaling 68,000 square feet of raised floor and
approximately 7,500 square feet of office space.

For the quarter ended June 30, 2009, the Company commenced leases totaling
approximately 115,000 square feet of space. This includes approximately 93,000
square feet of Turn-Key Datacenter(SM)( ) space leased at an average annual
GAAP rental rate of $166.00 per square foot and approximately 22,000 square
feet of non-technical space leased at an average annual GAAP rental rate of
$24.00 per square foot. In addition, approximately $627,000 of additional
incremental annualized GAAP rental revenue commenced during the quarter for
rooftop infrastructure associated with existing Powered Base Building(SM)
leases.

Balance Sheet Update

Total assets grew to approximately $3.4 billion at June 30, 2009, from $3.3
billion at December 31, 2008. Total debt at June 30, 2009 was approximately
$1.5 billion and at December 31, 2008 was approximately $1.4 billion.
Stockholders' equity was approximately $1.6 billion at June 30, 2009, up from
$1.5 billion at December 31, 2008.

In July, the Company received a preliminary $30.0 million commitment under its
revolving credit facility from a new lender. The transaction is expected to
close in August subject to satisfaction of specified conditions, and will
increase total commitments from $720.0 million to $750.0 million, the maximum
amount available under the terms of the revolving credit facility.
Concurrently, the sub-facility for multicurrency advances will increase from
$485.0 million to $515.0 million.

On June 24, the Company completed the financing of 1201 Comstock Street in
Santa Clara, California. The new loan for $18.1 million has a three-year
maturity with a one-year extension. The loan has a variable rate of LIBOR
plus 3.5% and is subject to a 4.0% LIBOR interest rate cap. At July 30, 2009,
the all-in variable interest rate was 3.785%.

On April 20, the Company issued $266.4 million of its 5.50% Exchangeable
Senior Debentures due 2029, resulting in $258.6 million in net proceeds that
will be used to temporarily repay borrowings under the revolving credit
facility, to fund development and redevelopment activities, and for general
corporate purposes.

"We have continued to improve our liquidity with additional capital, including
a secured mortgage debt financing and the new commitment to our revolving
credit facility. This commitment will maximize the facility's accordion
feature, bringing full capacity on the revolver to $750 million upon closing.
Of equal importance to the Company are the relationships with two new lenders,
which we look forward to expanding in the future," said A. William Stein,
Chief Financial Officer and Chief Investment Officer of Digital Realty Trust.
"Based on our performance to date and greater visibility towards the year end,
we are narrowing the annual guidance range of FFO per diluted share and unit
to $2.80 to $2.90. This revision is based on our existing assumptions and an
additional assumption that we will close acquisitions of income producing
properties in the range of $120 million to $200 million at average cap rates
between 10% and 12%."

2009 Revised Outlook
FFO per diluted share and unit for the year ending December 31, 2009 is
projected to be between $2.80 and $2.90, compared to the previous 2009 FFO
guidance of between $2.75 and $2.90 per diluted share and unit. This revised
guidance represents projected FFO growth of 7.7% to 11.5% over FFO per diluted
share and unit of $2.60 for the year ended December 31, 2008 (adjusted to give
retrospective effect to FASB Staff Position No. APB 14-1 as described above).
A reconciliation of the range of 2009 projected net income to projected FFO
follows:
(Low - High)
Net income available to common
stockholders per diluted share $0.80 - 0.90
Add:
Real estate depreciation and
amortization as adjusted for
noncontrolling interests $2.00
Projected FFO per diluted share $2.80 - 2.90

Investor Conference Call Details
Digital Realty Trust will host a conference call on Thursday, July 30, 2009 at
1:00 pm ET/10:00 am PT to discuss its second quarter 2009 financial results
and operating performance. The conference call will feature Chief Executive
Officer, Michael Foust and Chief Financial Officer and Chief Investment
Officer, A. William Stein. To participate in the live call, investors are
invited to dial 877-941-2333 (for domestic callers) or 480-629-9724 (for
international callers) and quote the conference ID #4096189 at least five
minutes prior to start time. A live webcast of the call will be available via
the Investor Relations section of Digital Realty Trust's website at
www.digitalrealtytrust.com. Please go to the website at least 15 minutes
early to register and download and install any necessary audio software. If
you are unable to listen to the live conference call, a telephone and webcast
replay will be available after 12:00 pm PT on Thursday, July 30, 2009 until
11:59 pm PT on Thursday, August 6, 2009. The telephone replay can be accessed
by dialing 800-405-7325 (for domestic callers) or 303-590-3030 (for
international callers) and using reservation code 4096189#. A replay of the
webcast will also be archived on Digital Realty Trust's website.

About Digital Realty Trust, Inc.
Digital Realty Trust, Inc. owns, acquires, redevelops, develops and manages
technology-related real estate. The Company is focused on providing Turn-Key
Datacenter(SM) and Powered Base Building(SM) datacenter solutions for domestic
and international tenants across a variety of industry verticals ranging from
information technology and Internet enterprises, to manufacturing and
financial services. Digital Realty Trust's 75 properties, excluding one
property held as an investment in an unconsolidated joint venture, contain
applications and operations critical to the day-to-day operations of
technology industry tenants and corporate enterprise datacenter tenants.
Comprising approximately 13.0 million rentable square feet as of July 30,
2009, including 1.1 million square feet of space held for redevelopment,
Digital Realty Trust's portfolio is located in 27 markets throughout North
America and Europe. For additional information, please visit Digital Realty
Trust's website at http://www.digitalrealtytrust.com.

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. Such forward looking statements include statements related to the
Company's expected future financial and other results. These risks and
uncertainties include the impact of the current deterioration in global
economic and market conditions; adverse economic or real estate developments
in our markets or the industry sectors that we sell to; decreases in
information technology spending; our dependence upon significant tenants;
bankruptcy or insolvency of a major tenant or a significant number of smaller
tenants; downturn of local economic conditions in our geographic markets; our
inability to comply with the rules and regulations applicable to public
companies or to manage our growth effectively; difficulty acquiring or
operating properties in foreign jurisdictions; defaults on or non-renewal of
leases by tenants; increased interest rates and operating costs; our failure
to obtain necessary outside financing; restrictions on our ability to engage
in certain business activities; risks related to joint venture investments;
decreased rental rates or increased vacancy rates; inability to successfully
develop and lease new properties and space held for redevelopment;
difficulties in identifying properties to acquire and completing acquisitions;
increased competition or available supply of data center space; our failure to
successfully operate acquired properties; our inability to acquire off-market
properties; delays or unexpected costs in development or redevelopment of
properties; our failure to maintain our status as a REIT; possible adverse
changes to tax laws; environmental uncertainties and risks related to natural
disasters; financial market fluctuations; changes in foreign currency exchange
rates; changes in foreign laws and regulations, including those related to
taxation and real estate ownership and operation; and 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 United States Securities and Exchange
Commission, including the Company's annual report on Form 10-K for the year
ended December 31, 2008 and subsequent reports on Form 10-Q and Form 8-K. 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.

Digital Realty Trust, Inc.
Condensed Consolidated Income Statements
(in thousands, except share data)
(unaudited)

Three Months Ended Six Months Ended
------------------ ----------------
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
-------- -------- -------- --------
Operating Revenues: (adjusted) (adjusted)

Rental $125,380 $97,966 $243,469 $190,712
Tenant
reimbursements 29,544 25,698 60,571 47,485
Other 83 112 101 126

------- ------- ------- -------
Total
operating
revenues 155,007 123,776 304,141 238,323
------- ------- ------- -------

Operating Expenses:

Rental
property
operating and
maintenance 42,301 35,943 84,874 67,624
Property taxes 9,149 8,522 18,360 16,646
Insurance 1,488 1,198 2,944 2,403
Depreciation
and
amortization 49,183 39,591 95,487 78,744
General and
administrative 10,040 9,686 20,142 18,469
Other - 2 285 309

------- ------ ------- -------
Total
operating
expenses 112,161 94,942 222,092 184,195
------- ------ ------- -------

Operating
income 42,846 28,834 82,049 54,128

Other Income (Expenses):
Equity in
earnings of
unconsolidated
joint venture 741 173 1,857 331
Interest and
other income 403 407 646 1,062
Interest
expense (22,495) (14,956) (41,432) (30,158)
Income tax
expense (292) (726) (728) (815)
Loss from
early
extinguishment
of debt - (182) - (182)

------ ------ ------ ------
Net Income 21,203 13,550 42,392 24,366

Net income
attributable
to
noncontrolling
interests (831) (354) (1,624) (593)
---- ---- ------ ----

Net Income
Attributable to
Digital Realty
Trust, Inc. 20,372 13,196 40,768 23,773

Preferred
stock
dividends (10,101) (10,102) (20,202) (18,360)

------- ------ ------- ------
Net Income
Available to
Common
Stockholders $10,271 $3,094 $20,566 $5,413
======= ====== ======= ======

Net income per
share available to
common stockholders:
Basic $0.13 $0.05 $0.27 $0.08
Diluted $0.13 $0.05 $0.27 $0.08

Weighted average
shares outstanding:
Basic 76,121,380 65,889,122 75,416,483 65,660,354
Diluted 76,851,202 68,068,600 75,806,481 67,563,963

Digital Realty Trust
Consolidated Balance Sheets
(in thousands)

June 30, 2009 December 31, 2008
------------- -----------------
ASSETS (unaudited)

Investments in
real estate
Properties:
Land $341,719 $316,318
Acquired
ground
leases 2,742 2,733
Buildings
and
improvements 2,666,148 2,467,830
Tenant
improvements 264,927 255,818
------- -------

Investments in
properties 3,275,536 3,042,699
Accumulated
depreciation
and
amortization (378,523) (302,960)
-------- --------

Net
investments in
properties 2,897,013 2,739,739
Investment in
unconsolidated
joint venture 8,338 8,481
----- -----
Net investments
in real estate 2,905,351 2,748,220
Cash and cash
equivalents 69,316 73,334
Accounts and
other
receivables,
net 40,195 39,108
Deferred rent 122,823 99,957
Acquired above
market leases,
net 28,503 31,352
Acquired in
place lease
value and
deferred leasing
costs, net 215,597 222,389
Deferred
financing costs,
net 21,938 16,275
Restricted cash 30,676 45,470
Other assets 10,309 4,940
------ -----

Total Assets $3,444,708 $3,281,045
---------- ----------

LIABILITIES AND EQUITY

Revolving credit
facility $32,668 $138,579
Unsecured senior
notes 83,000 58,000
Mortgage loans 973,604 1,026,594
4.125%
exchangeable
senior
debentures due
2026, net of
discount 163,834 161,901
5.50%
exchangeable
senior
debentures due
2029 266,400 -
Accounts payable
and other
accrued
liabilities 127,279 171,176
Accrued
dividends and
distributions - 26,092
Acquired below
market leases,
net 69,840 76,660
Security
deposits and
prepaid rents 56,719 46,967

--------- ---------
Total Liabilities 1,773,344 1,705,969
--------- ---------

Equity:
Stockholders'
equity 1,584,948 1,503,921
Noncontrolling
interests 86,416 71,155
------ ------
Total Equity 1,671,364 1,575,076
--------- ---------

Total
Liabilities and
Equity $3,444,708 $3,281,045
---------- ----------

Digital Realty Trust, Inc.
Reconciliation of Net Income Available to Common Stockholders
to Funds From Operations (FFO)(1)
(in thousands, except per share and unit data)
(unaudited)

Three Months Ended Six Months Ended
------------------ ----------------
June 30, March 31, June 30, June 30, June 30,
2009 2009 2008 2009 2008
-------- --------- -------- -------- --------
(adjusted) (adjusted)

Net income available
to common
stockholders $10,271 $10,295 $3,094 $20,566 $5,413
Adjustments:
Noncontrolling
interests 831 793 354 1,624 593
Real estate
related
depreciation
and
amortization(2) 48,900 46,087 39,414 94,987 78,408
Real estate
related
depreciation and
amortization
related to
investment in
unconsolidated
joint venture 858 646 872 1,504 1,766

------- ------- ------- -------- -------
FFO available to
common
stockholders
and unitholders(3) $60,860 $57,821 $43,734 $118,681 $86,180
======= ======= ======= ======== =======

Basic FFO per share
and unit $0.74 $0.72 $0.60 $1.46 $1.19
Diluted FFO per
share and unit (3) $0.71 $0.70 $0.58 $1.41 $1.16

Weighted average common
stock and units
outstanding
Basic 81,999 80,550 72,354 81,278 72,265
Diluted(3) 99,461 92,571 86,366 95,962 84,412

(1) Financial information for prior periods has been adjusted for the
retroactive application of the following new accounting guidance
adopted by the Company effective January 1, 2009: FASB Staff
Position APB 14-1 "Accounting for Convertible Debt Instruments That
May be Settled Upon Conversion (Including Partial Cash Settlement)";
Statement of Financial Accounting Standard No. 160 "Noncontrolling
Interests in Consolidated Financial Statements - An Amendment of ARB
No. 51".

(2) Real estate depreciation and amortization was computed as follows:
Depreciation
and
amortization
per income
statement 49,183 46,304 39,591 95,487 78,744
Non real
estate
depreciation (283) (217) (177) (500) (336)
---- ---- ---- ---- ----
$48,900 $46,087 $39,414 $94,987 $78,408
======= ======= ======= ======= =======

(3) At June 30, 2009, we had 6,999,955 series C convertible preferred
shares and 13,795,500 series D convertible preferred shares
outstanding that were convertible into 3,614,777 common shares and
8,215,221 common shares, respectively. In addition, we had a balance
of $266,400 of 5.50% exchangeable senior debentures that were
exchangeable for 4,901,812 and 2,464,447 common shares on a weighted
average basis for the three and six months ended June 30, 2009,
respectively. See below for calculations of diluted FFO available to
common stockholders and unitholders and weighted average common stock
and units outstanding.

Three Months Ended Six Months Ended
------------------ ----------------
June 30, March 31, June 30, June 30, June 30,
2009 2009 2008 2009 2008
-------- --------- -------- -------- --------

FFO available to
common stockholders
and unitholders $60,860 $57,821 $43,734 $118,681 $86,180

Add: Series C
convertible
preferred dividends 1,914 1,914 1,914 3,828 3,828
Add: Series D
convertible
preferred dividends 4,742 4,742 4,744 9,484 7,643
Add: 5.50%
exchangeable senior
debentures interest 2,890 - - 2,890 -
----- ----- ----- ----- -----

FFO available to
common stockholders
and unitholders --
diluted $70,406 $64,477 $50,392 $134,883 $97,651
======= ======= ======= ======== =======

Weighted average
common stock and
units outstanding 81,999 80,550 72,354 81,278 72,265
Add: Effect of
dilutive securities
(excluding series C
and D convertible
preferred stock) 730 191 2,179 390 1,904
Add: Effect of
dilutive series C
convertible
preferred stock 3,615 3,615 3,615 3,615 3,615
Add: Effect of
dilutive series D
convertible
preferred stock 8,215 8,215 8,218 8,215 6,628
Add: Effect of
dilutive 5.50%
exchangeable senior
debentures 4,902 - - 2,464 -
----- ---- ---- ----- ----
Weighted average
common stock and
units outstanding --
diluted 99,461 92,571 86,366 95,962 84,412
====== ====== ====== ====== ======

Note Regarding Funds From Operations
Digital Realty Trust calculates Funds from Operations, or FFO, in accordance
with the standards established by the National Association of Real Estate
Investment Trusts, or NAREIT. FFO represents net income (loss) available to
common stockholders and unitholders (computed in accordance with U.S. GAAP),
excluding gains (or losses) from sales of property, real estate related
depreciation and amortization (excluding amortization of deferred financing
costs) and after adjustments for unconsolidated partnerships and joint
ventures. Management 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 year over year, captures trends in occupancy rates, rental rates
and operating costs. Digital Realty Trust also believes that, as a widely
recognized measure of the performance of REITs, FFO will be used by investors
as a basis to compare our operating performance with that of other REITs.
However, because FFO excludes depreciation and amortization and captures
neither the changes in the value of our properties that result from use or
market conditions, nor the level of capital expenditures and leasing
commissions necessary to maintain the operating performance of our properties,
all of which have real economic effect and could materially impact our
financial condition and results from operations, the utility of FFO as a
measure of our performance is limited. Other REITs may not calculate FFO in
accordance with the NAREIT definition and, accordingly, our FFO may not be
comparable to such other REITs' FFO. Accordingly, FFO should be considered
only as a supplement to net income as a measure of our performance.

For Additional Information:

A. William Stein Pamela Matthews
Chief Financial Officer and Investor/Analyst Information
Chief Investment Officer Digital Realty Trust, Inc.
Digital Realty Trust, Inc. +1 (415) 738-6532
+1 (415) 738-6520

SOURCE Digital Realty Trust, Inc.

A. William Stein, Chief Financial Officer and Chief Investment Officer,
+1-415-738-6520, or Pamela Matthews, Investor/Analyst Information,
+1-415-738-6532, both of Digital Realty Trust, Inc.