|
|
|
|
☒
|
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
☐
|
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
|
|
|
|
Maryland
|
(Digital Realty Trust, Inc.)
|
|
|
|
|
26-0081711
|
Maryland
|
(Digital Realty Trust, L.P.)
|
|
|
|
|
20-2402955
|
(State or other jurisdiction of
incorporation or organization)
|
|
|
|
|
(IRS employer
identification number)
|
|
|
|
|
||||
|
|
Four Embarcadero Center, Suite 3200
|
|
|||
|
|
San Francisco
|
,
|
California
|
94111
|
|
|
|
(Address of principal executive offices)
|
|
|||
|
|
|
|
|
|
|
|
|
Title of each class
|
|
Trading symbol(s)
|
|
Name of each exchange on which registered
|
Common Stock
|
|
DLR
|
|
New York Stock Exchange
|
Series C Cumulative Redeemable Perpetual Preferred Stock
|
|
DLR Pr C
|
|
New York Stock Exchange
|
Series G Cumulative Redeemable Preferred Stock
|
|
DLR Pr G
|
|
New York Stock Exchange
|
Series I Cumulative Redeemable Preferred Stock
|
|
DLR Pr I
|
|
New York Stock Exchange
|
Series J Cumulative Redeemable Preferred Stock
|
|
DLR Pr J
|
|
New York Stock Exchange
|
Series K Cumulative Redeemable Preferred Stock
|
|
DLR Pr K
|
|
New York Stock Exchange
|
Digital Realty Trust, Inc.
|
|
Yes
|
☒ No ☐
|
Digital Realty Trust, L.P.
|
|
Yes
|
☒ No ☐
|
Digital Realty Trust, Inc.
|
|
Yes
|
☒ No ☐
|
Digital Realty Trust, L.P.
|
|
Yes
|
☒ No ☐
|
Large accelerated filer
|
☒
|
|
Accelerated filer
|
☐
|
|
|
|
|
|
Non-accelerated filer
|
☐
|
|
Smaller reporting company
|
☐
|
|
|
|
|
|
|
|
|
Emerging growth company
|
☐
|
Large accelerated filer
|
☐
|
|
Accelerated filer
|
☐
|
|
|
|
|
|
Non-accelerated filer
|
☒
|
|
Smaller reporting company
|
☐
|
|
|
|
|
|
|
|
|
Emerging growth company
|
☐
|
Digital Realty Trust, Inc.
|
|
☐
|
Digital Realty Trust, L.P.
|
|
☐
|
Digital Realty Trust, Inc.
|
|
Yes
|
☐
|
No ☒
|
Digital Realty Trust, L.P.
|
|
Yes
|
☐
|
No ☒
|
Class
|
|
Outstanding at August 2, 2019
|
Common Stock, $.01 par value per share
|
|
208,343,049
|
•
|
enhancing investors’ understanding of our Company and our Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;
|
•
|
eliminating duplicative disclosure and providing a more streamlined and readable presentation since a substantial portion of the disclosure applies to both our Company and our Operating Partnership; and
|
•
|
creating time and cost efficiencies through the preparation of one combined report instead of two separate reports.
|
•
|
Condensed consolidated financial statements;
|
•
|
the following notes to the condensed consolidated financial statements:
|
•
|
"Debt of the Company" and "Debt of the Operating Partnership";
|
•
|
"Income per Share" and "Income per Unit"; and
|
•
|
"Equity and Accumulated Other Comprehensive Loss, Net" and "Capital and Accumulated Other Comprehensive Loss";
|
•
|
Part I, Item 2. "Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources of the Parent Company" and "—Liquidity and Capital Resources of the Operating Partnership"; and
|
•
|
Part II, Item 2. "Unregistered Sales of Equity Securities and Use of Proceeds".
|
|
|
Page
Number
|
PART I.
|
FINANCIAL INFORMATION
|
|
|
|
|
ITEM 1.
|
Condensed Consolidated Financial Statements of Digital Realty Trust, Inc.:
|
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
Condensed Consolidated Financial Statements of Digital Realty Trust, L.P.:
|
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
ITEM 2.
|
||
|
|
|
ITEM 3.
|
||
|
|
|
ITEM 4.
|
||
|
|
|
|
||
|
|
|
PART II.
|
||
|
|
|
ITEM 1.
|
||
|
|
|
ITEM 1A.
|
||
|
|
|
ITEM 2.
|
||
|
|
|
ITEM 3.
|
||
|
|
|
ITEM 4.
|
||
|
|
|
ITEM 5.
|
||
|
|
|
ITEM 6.
|
||
|
|
|
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
|
|
|
|
||||
ASSETS
|
|
|
|
||||
Investments in real estate:
|
|
|
|
||||
Properties:
|
|
|
|
||||
Land
|
$
|
847,763
|
|
|
$
|
859,113
|
|
Acquired ground leases
|
10,511
|
|
|
10,575
|
|
||
Buildings and improvements
|
15,855,729
|
|
|
15,610,992
|
|
||
Tenant improvements
|
610,412
|
|
|
574,336
|
|
||
Total investments in operating properties
|
17,324,415
|
|
|
17,055,016
|
|
||
Accumulated depreciation and amortization
|
(4,312,357
|
)
|
|
(3,935,267
|
)
|
||
Net investments in operating properties
|
13,012,058
|
|
|
13,119,749
|
|
||
Construction in progress and space held for development
|
1,685,057
|
|
|
1,621,928
|
|
||
Land held for future development
|
152,368
|
|
|
162,941
|
|
||
Net investments in properties
|
14,849,483
|
|
|
14,904,618
|
|
||
Investments in unconsolidated joint ventures
|
979,350
|
|
|
175,108
|
|
||
Net investments in real estate
|
15,828,833
|
|
|
15,079,726
|
|
||
Operating lease right-of-use assets
|
648,952
|
|
|
—
|
|
||
Cash and cash equivalents
|
33,536
|
|
|
126,700
|
|
||
Accounts and other receivables, net
|
320,938
|
|
|
299,621
|
|
||
Deferred rent, net
|
491,486
|
|
|
463,248
|
|
||
Acquired above-market leases, net
|
94,474
|
|
|
119,759
|
|
||
Goodwill
|
3,353,538
|
|
|
4,348,007
|
|
||
Acquired in-place lease value, deferred leasing costs and intangibles, net
|
2,499,564
|
|
|
3,144,395
|
|
||
Other assets
|
158,770
|
|
|
185,239
|
|
||
Total assets
|
$
|
23,430,091
|
|
|
$
|
23,766,695
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Global revolving credit facilities
|
$
|
1,417,675
|
|
|
$
|
1,647,735
|
|
Unsecured term loans, net
|
807,922
|
|
|
1,178,904
|
|
||
Unsecured senior notes, net
|
8,511,656
|
|
|
7,589,126
|
|
||
Secured debt, including premiums
|
105,325
|
|
|
685,714
|
|
||
Operating lease liabilities
|
714,256
|
|
|
—
|
|
||
Accounts payable and other accrued liabilities
|
984,812
|
|
|
1,164,509
|
|
||
Accrued dividends and distributions
|
—
|
|
|
217,241
|
|
||
Acquired below-market leases, net
|
183,832
|
|
|
200,113
|
|
||
Security deposits and prepaid rents
|
213,549
|
|
|
209,311
|
|
||
Total liabilities
|
12,939,027
|
|
|
12,892,653
|
|
||
|
|
|
|
||||
Redeemable noncontrolling interests – operating partnership
|
17,344
|
|
|
15,832
|
|
||
Commitments and contingencies
|
|
|
|
||||
Equity:
|
|
|
|
||||
Stockholders’ Equity:
|
|
|
|
||||
Preferred Stock: $0.01 par value per share, 110,000,000 shares authorized; 44,450,000 and 50,650,000 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively
|
1,099,534
|
|
|
1,249,560
|
|
||
Common Stock: $0.01 par value per share, 315,000,000 shares authorized, 208,324,538 and 206,425,656 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively
|
2,067
|
|
|
2,051
|
|
||
Additional paid-in capital
|
11,511,519
|
|
|
11,355,751
|
|
||
Accumulated dividends in excess of earnings
|
(2,961,307
|
)
|
|
(2,633,071
|
)
|
||
Accumulated other comprehensive loss, net
|
(89,588
|
)
|
|
(115,647
|
)
|
||
Total stockholders’ equity
|
9,562,225
|
|
|
9,858,644
|
|
||
Noncontrolling Interests:
|
|
|
|
||||
Noncontrolling interests in operating partnership
|
756,050
|
|
|
906,510
|
|
||
Noncontrolling interests in consolidated joint ventures
|
155,445
|
|
|
93,056
|
|
||
Total noncontrolling interests
|
911,495
|
|
|
999,566
|
|
||
Total equity
|
10,473,720
|
|
|
10,858,210
|
|
||
Total liabilities and equity
|
$
|
23,430,091
|
|
|
$
|
23,766,695
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Operating Revenues:
|
|
|
|
|
|
|
|
||||||||
Rental and other services
|
$
|
799,386
|
|
|
$
|
596,326
|
|
|
$
|
1,611,416
|
|
|
$
|
1,188,624
|
|
Tenant reimbursements
|
—
|
|
|
155,723
|
|
|
—
|
|
|
305,802
|
|
||||
Fee income and other
|
1,411
|
|
|
2,870
|
|
|
3,896
|
|
|
4,861
|
|
||||
Total operating revenues
|
800,797
|
|
|
754,919
|
|
|
1,615,312
|
|
|
1,499,287
|
|
||||
Operating Expenses:
|
|
|
|
|
|
|
|
||||||||
Rental property operating and maintenance
|
252,032
|
|
|
230,322
|
|
|
506,986
|
|
|
455,962
|
|
||||
Property taxes and insurance
|
44,923
|
|
|
29,890
|
|
|
85,229
|
|
|
68,884
|
|
||||
Depreciation and amortization
|
290,562
|
|
|
298,788
|
|
|
602,048
|
|
|
593,577
|
|
||||
General and administrative
|
52,983
|
|
|
46,099
|
|
|
106,442
|
|
|
82,622
|
|
||||
Transactions and integration
|
4,210
|
|
|
5,606
|
|
|
6,704
|
|
|
9,784
|
|
||||
Impairment of investments in real estate
|
—
|
|
|
—
|
|
|
5,351
|
|
|
—
|
|
||||
Other
|
7,115
|
|
|
152
|
|
|
12,037
|
|
|
583
|
|
||||
Total operating expenses
|
651,825
|
|
|
610,857
|
|
|
1,324,797
|
|
|
1,211,412
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating income
|
148,972
|
|
|
144,062
|
|
|
290,515
|
|
|
287,875
|
|
||||
Other Income (Expenses):
|
|
|
|
|
|
|
|
||||||||
Equity in earnings of unconsolidated joint ventures
|
6,962
|
|
|
7,438
|
|
|
16,179
|
|
|
14,848
|
|
||||
Gain on deconsolidation / sale of properties, net
|
—
|
|
|
14,192
|
|
|
67,497
|
|
|
53,465
|
|
||||
Interest and other income, net
|
16,980
|
|
|
3,398
|
|
|
38,424
|
|
|
3,356
|
|
||||
Interest expense
|
(86,051
|
)
|
|
(78,810
|
)
|
|
(187,603
|
)
|
|
(155,795
|
)
|
||||
Tax expense
|
(4,634
|
)
|
|
(2,121
|
)
|
|
(8,900
|
)
|
|
(5,495
|
)
|
||||
Loss from early extinguishment of debt
|
(20,905
|
)
|
|
—
|
|
|
(33,791
|
)
|
|
—
|
|
||||
Net income
|
61,324
|
|
|
88,159
|
|
|
182,321
|
|
|
198,254
|
|
||||
Net income attributable to noncontrolling interests
|
(1,156
|
)
|
|
(2,696
|
)
|
|
(5,341
|
)
|
|
(6,164
|
)
|
||||
Net income attributable to Digital Realty Trust, Inc.
|
60,168
|
|
|
85,463
|
|
|
176,980
|
|
|
192,090
|
|
||||
Preferred stock dividends, including undeclared dividends
|
(16,670
|
)
|
|
(20,329
|
)
|
|
(37,613
|
)
|
|
(40,658
|
)
|
||||
Issuance costs associated with redeemed
preferred stock |
(11,760
|
)
|
|
—
|
|
|
(11,760
|
)
|
|
—
|
|
||||
Net income available to common stockholders
|
$
|
31,738
|
|
|
$
|
65,134
|
|
|
$
|
127,607
|
|
|
$
|
151,432
|
|
Net income per share available to common stockholders:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.15
|
|
|
$
|
0.32
|
|
|
$
|
0.61
|
|
|
$
|
0.74
|
|
Diluted
|
$
|
0.15
|
|
|
$
|
0.32
|
|
|
$
|
0.61
|
|
|
$
|
0.73
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
208,284,407
|
|
|
205,956,005
|
|
|
208,048,207
|
|
|
205,835,757
|
|
||||
Diluted
|
209,435,572
|
|
|
206,563,079
|
|
|
208,894,294
|
|
|
206,460,170
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income
|
$
|
61,324
|
|
|
$
|
88,159
|
|
|
$
|
182,321
|
|
|
$
|
198,254
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
10,963
|
|
|
(7,233
|
)
|
|
20,156
|
|
|
(10,976
|
)
|
||||
Reclassification of foreign currency translation
adjustment due to deconsolidation of Ascenty |
—
|
|
|
—
|
|
|
21,687
|
|
|
—
|
|
||||
(Decrease) increase in fair value of interest rate swaps and foreign currency hedges
|
(6,604
|
)
|
|
4,795
|
|
|
(10,379
|
)
|
|
13,411
|
|
||||
Reclassification to interest expense from interest rate swaps
|
(2,156
|
)
|
|
(783
|
)
|
|
(4,250
|
)
|
|
(1,018
|
)
|
||||
Comprehensive income
|
63,527
|
|
|
84,938
|
|
|
209,535
|
|
|
199,671
|
|
||||
Comprehensive income attributable to noncontrolling interests
|
(1,224
|
)
|
|
(2,571
|
)
|
|
(6,473
|
)
|
|
(6,219
|
)
|
||||
Comprehensive income attributable to Digital Realty Trust, Inc.
|
$
|
62,303
|
|
|
$
|
82,367
|
|
|
$
|
203,062
|
|
|
$
|
193,452
|
|
Six Months Ended June 30, 2019
|
|
Redeemable Noncontrolling Interests -- Operating Partnership
|
|
Preferred
Stock
|
|
Number of
Common
Shares
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Accumulated
Dividends in
Excess of
Earnings
|
|
Accumulated
Other
Comprehensive
Loss, Net
|
|
Total
Stockholders’
Equity
|
|
Noncontrolling
Interests in
Operating
Partnership
|
|
Noncontrolling
Interests in
Consolidated
Joint Ventures
|
|
Total
Noncontrolling
Interests
|
|
Total Equity
|
|||||||||||||||||||||||
Balance as of December 31, 2018
|
|
$
|
15,832
|
|
|
$
|
1,249,560
|
|
|
206,425,656
|
|
|
$
|
2,051
|
|
|
$
|
11,355,751
|
|
|
$
|
(2,633,071
|
)
|
|
$
|
(115,647
|
)
|
|
$
|
9,858,644
|
|
|
$
|
906,510
|
|
|
$
|
93,056
|
|
|
$
|
999,566
|
|
|
$
|
10,858,210
|
|
Conversion of common units to common stock
|
|
—
|
|
|
—
|
|
|
1,622,940
|
|
|
16
|
|
|
145,090
|
|
|
—
|
|
|
—
|
|
|
145,106
|
|
|
(145,106
|
)
|
|
—
|
|
|
(145,106
|
)
|
|
—
|
|
|||||||||||
Issuance of unvested restricted stock, net of forfeitures
|
|
—
|
|
|
—
|
|
|
250,708
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Issuance of common stock, net of offering costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(976
|
)
|
|
—
|
|
|
—
|
|
|
(976
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(976
|
)
|
|||||||||||
Shares issued under employee stock purchase plan
|
|
—
|
|
|
—
|
|
|
25,234
|
|
|
—
|
|
|
2,259
|
|
|
—
|
|
|
—
|
|
|
2,259
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,259
|
|
|||||||||||
Issuance of series K preferred stock, net of offering costs
|
|
—
|
|
|
203,264
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
203,264
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
203,264
|
|
|||||||||||
Redemption of series H preferred stock
|
|
—
|
|
|
(353,290
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,760
|
)
|
|
—
|
|
|
(365,050
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(365,050
|
)
|
|||||||||||
Amortization of share-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,861
|
|
|
—
|
|
|
—
|
|
|
18,861
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,861
|
|
|||||||||||
Reclassification of vested share-based awards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,712
|
)
|
|
—
|
|
|
—
|
|
|
(7,712
|
)
|
|
7,712
|
|
|
—
|
|
|
7,712
|
|
|
—
|
|
|||||||||||
Adjustment to redeemable noncontrolling interests—operating partnership
|
|
1,754
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,754
|
)
|
|
—
|
|
|
—
|
|
|
(1,754
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,754
|
)
|
|||||||||||
Dividends declared on preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(37,613
|
)
|
|
—
|
|
|
(37,613
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(37,613
|
)
|
|||||||||||
Dividends and distributions on common stock and common and incentive units
|
|
(338
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(449,525
|
)
|
|
—
|
|
|
(449,525
|
)
|
|
(19,825
|
)
|
|
—
|
|
|
(19,825
|
)
|
|
(469,350
|
)
|
|||||||||||
Contributions from noncontrolling interests in consolidated joint ventures, net of distributions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
62,748
|
|
|
62,748
|
|
|
62,748
|
|
|||||||||||
Cumulative effect adjustment from adoption of new accounting standard
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,318
|
)
|
|
—
|
|
|
(6,318
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,318
|
)
|
|||||||||||
Net income
|
|
96
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
176,980
|
|
|
—
|
|
|
176,980
|
|
|
5,604
|
|
|
(359
|
)
|
|
5,245
|
|
|
182,225
|
|
|||||||||||
Other comprehensive income—foreign currency translation adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40,073
|
|
|
40,073
|
|
|
1,770
|
|
|
—
|
|
|
1,770
|
|
|
41,843
|
|
|||||||||||
Other comprehensive loss—fair value of interest rate swaps
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,943
|
)
|
|
(9,943
|
)
|
|
(436
|
)
|
|
—
|
|
|
(436
|
)
|
|
(10,379
|
)
|
|||||||||||
Other comprehensive loss—reclassification of accumulated other comprehensive income to interest expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,071
|
)
|
|
(4,071
|
)
|
|
(179
|
)
|
|
—
|
|
|
(179
|
)
|
|
(4,250
|
)
|
|||||||||||
Balance as of June 30, 2019
|
|
$
|
17,344
|
|
|
$
|
1,099,534
|
|
|
208,324,538
|
|
|
$
|
2,067
|
|
|
$
|
11,511,519
|
|
|
$
|
(2,961,307
|
)
|
|
$
|
(89,588
|
)
|
|
$
|
9,562,225
|
|
|
$
|
756,050
|
|
|
$
|
155,445
|
|
|
$
|
911,495
|
|
|
$
|
10,473,720
|
|
Three Months Ended June 30, 2019
|
|
Redeemable Noncontrolling Interests -- Operating Partnership
|
|
Preferred
Stock
|
|
Number of
Common
Shares
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Accumulated
Dividends in
Excess of
Earnings
|
|
Accumulated
Other
Comprehensive
Loss, Net
|
|
Total
Stockholders’
Equity
|
|
Noncontrolling
Interests in
Operating
Partnership
|
|
Noncontrolling
Interests in
Consolidated
Joint Ventures
|
|
Total
Noncontrolling
Interests
|
|
Total Equity
|
|||||||||||||||||||||||
Balance as of March 31, 2019
|
|
$
|
17,678
|
|
|
$
|
1,452,983
|
|
|
208,214,139
|
|
|
$
|
2,066
|
|
|
$
|
11,492,766
|
|
|
$
|
(2,767,708
|
)
|
|
$
|
(91,699
|
)
|
|
$
|
10,088,408
|
|
|
$
|
772,931
|
|
|
$
|
121,160
|
|
|
$
|
894,091
|
|
|
$
|
10,982,499
|
|
Conversion of common units to common stock
|
|
—
|
|
|
—
|
|
|
105,064
|
|
|
1
|
|
|
9,096
|
|
|
—
|
|
|
—
|
|
|
9,097
|
|
|
(9,097
|
)
|
|
—
|
|
|
(9,097
|
)
|
|
—
|
|
|||||||||||
Issuance of unvested restricted stock, net of forfeitures
|
|
—
|
|
|
—
|
|
|
5,335
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Issuance of common stock, net of offering costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(601
|
)
|
|
—
|
|
|
—
|
|
|
(601
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(601
|
)
|
|||||||||||
Payment of offering costs
|
|
—
|
|
|
(159
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(159
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(159
|
)
|
|||||||||||
Redemption of series H preferred stock
|
|
—
|
|
|
(353,290
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,760
|
)
|
|
—
|
|
|
(365,050
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(365,050
|
)
|
|||||||||||
Amortization of share-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,461
|
|
|
—
|
|
|
—
|
|
|
10,461
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,461
|
|
|||||||||||
Reclassification of vested share-based awards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(392
|
)
|
|
—
|
|
|
—
|
|
|
(392
|
)
|
|
392
|
|
|
—
|
|
|
392
|
|
|
—
|
|
|||||||||||
Adjustment to redeemable noncontrolling interests—operating partnership
|
|
(189
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
189
|
|
|
—
|
|
|
—
|
|
|
189
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
189
|
|
|||||||||||
Dividends declared on preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17,284
|
)
|
|
—
|
|
|
(17,284
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17,284
|
)
|
|||||||||||
Dividends and distributions on common stock and common and incentive units
|
|
(169
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(224,723
|
)
|
|
—
|
|
|
(224,723
|
)
|
|
(9,644
|
)
|
|
—
|
|
|
(9,644
|
)
|
|
(234,367
|
)
|
|||||||||||
Contributions from noncontrolling interests in consolidated joint ventures, net of distributions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34,529
|
|
|
34,529
|
|
|
34,529
|
|
|||||||||||
Net income
|
|
24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60,168
|
|
|
—
|
|
|
60,168
|
|
|
1,376
|
|
|
(244
|
)
|
|
1,132
|
|
|
61,300
|
|
|||||||||||
Other comprehensive income—foreign currency translation adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,506
|
|
|
10,506
|
|
|
457
|
|
|
—
|
|
|
457
|
|
|
10,963
|
|
|||||||||||
Other comprehensive loss—fair value of interest rate swaps
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,329
|
)
|
|
(6,329
|
)
|
|
(275
|
)
|
|
—
|
|
|
(275
|
)
|
|
(6,604
|
)
|
|||||||||||
Other comprehensive loss—reclassification of accumulated other comprehensive income to interest expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,066
|
)
|
|
(2,066
|
)
|
|
(90
|
)
|
|
—
|
|
|
(90
|
)
|
|
(2,156
|
)
|
|||||||||||
Balance as of June 30, 2019
|
|
$
|
17,344
|
|
|
$
|
1,099,534
|
|
|
208,324,538
|
|
|
$
|
2,067
|
|
|
$
|
11,511,519
|
|
|
$
|
(2,961,307
|
)
|
|
$
|
(89,588
|
)
|
|
$
|
9,562,225
|
|
|
$
|
756,050
|
|
|
$
|
155,445
|
|
|
$
|
911,495
|
|
|
$
|
10,473,720
|
|
Six Months Ended June 30, 2018
|
|
Redeemable Noncontrolling Interests -- Operating Partnership
|
|
Preferred
Stock
|
|
Number of
Common
Shares
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Accumulated
Dividends in
Excess of
Earnings
|
|
Accumulated
Other
Comprehensive
Loss, Net
|
|
Total
Stockholders’
Equity
|
|
Noncontrolling
Interests in
Operating
Partnership
|
|
Noncontrolling
Interests in
Consolidated
Joint Ventures
|
|
Total
Noncontrolling
Interests
|
|
Total Equity
|
|||||||||||||||||||||||
Balance as of December 31, 2017
|
|
$
|
53,902
|
|
|
$
|
1,249,560
|
|
|
205,470,300
|
|
|
$
|
2,044
|
|
|
$
|
11,261,461
|
|
|
$
|
(2,055,552
|
)
|
|
$
|
(108,432
|
)
|
|
$
|
10,349,081
|
|
|
$
|
698,126
|
|
|
$
|
2,243
|
|
|
$
|
700,369
|
|
|
$
|
11,049,450
|
|
Conversion of common units to common stock
|
|
—
|
|
|
—
|
|
|
406,639
|
|
|
4
|
|
|
35,823
|
|
|
—
|
|
|
—
|
|
|
35,827
|
|
|
(35,827
|
)
|
|
—
|
|
|
(35,827
|
)
|
|
—
|
|
|||||||||||
Issuance of unvested restricted stock, net of forfeitures
|
|
—
|
|
|
—
|
|
|
193,118
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Issuance of common stock, net of offering costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(652
|
)
|
|
—
|
|
|
—
|
|
|
(652
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(652
|
)
|
|||||||||||
Shares issued under employee stock purchase plan
|
|
—
|
|
|
—
|
|
|
31,893
|
|
|
—
|
|
|
2,509
|
|
|
—
|
|
|
—
|
|
|
2,509
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,509
|
|
|||||||||||
Shares repurchased and retired to satisfy tax withholding upon vesting
|
|
—
|
|
|
—
|
|
|
(46,833
|
)
|
|
(1
|
)
|
|
(4,717
|
)
|
|
—
|
|
|
—
|
|
|
(4,718
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,718
|
)
|
|||||||||||
Amortization of share-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,458
|
|
|
—
|
|
|
—
|
|
|
17,458
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,458
|
|
|||||||||||
Reclassification of vested share-based awards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,847
|
)
|
|
—
|
|
|
—
|
|
|
(2,847
|
)
|
|
2,847
|
|
|
—
|
|
|
2,847
|
|
|
—
|
|
|||||||||||
Adjustment to redeemable noncontrolling interests—operating partnership
|
|
(1,097
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,097
|
|
|
—
|
|
|
—
|
|
|
1,097
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,097
|
|
|||||||||||
Dividends declared on preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(40,658
|
)
|
|
—
|
|
|
(40,658
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(40,658
|
)
|
|||||||||||
Dividends and distributions on common stock and common and incentive units
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(416,086
|
)
|
|
—
|
|
|
(416,086
|
)
|
|
(17,120
|
)
|
|
—
|
|
|
(17,120
|
)
|
|
(433,206
|
)
|
|||||||||||
Contributions from noncontrolling interests in consolidated joint ventures, net of distributions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
62
|
|
|
62
|
|
|
62
|
|
|||||||||||
Cumulative effect adjustment from adoption of new accounting standard
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,915
|
|
|
—
|
|
|
5,915
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,915
|
|
|||||||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
192,090
|
|
|
—
|
|
|
192,090
|
|
|
6,180
|
|
|
(16
|
)
|
|
6,164
|
|
|
198,254
|
|
|||||||||||
Other comprehensive loss—foreign currency translation adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,550
|
)
|
|
(10,550
|
)
|
|
(426
|
)
|
|
—
|
|
|
(426
|
)
|
|
(10,976
|
)
|
|||||||||||
Other comprehensive income—fair value of interest rate swaps
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,891
|
|
|
12,891
|
|
|
520
|
|
|
—
|
|
|
520
|
|
|
13,411
|
|
|||||||||||
Other comprehensive loss—reclassification of accumulated other comprehensive income to interest expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(979
|
)
|
|
(979
|
)
|
|
(39
|
)
|
|
—
|
|
|
(39
|
)
|
|
(1,018
|
)
|
|||||||||||
Balance as of June 30, 2018
|
|
$
|
52,805
|
|
|
$
|
1,249,560
|
|
|
206,055,117
|
|
|
$
|
2,047
|
|
|
$
|
11,310,132
|
|
|
$
|
(2,314,291
|
)
|
|
$
|
(107,070
|
)
|
|
$
|
10,140,378
|
|
|
$
|
654,261
|
|
|
$
|
2,289
|
|
|
$
|
656,550
|
|
|
$
|
10,796,928
|
|
Three Months Ended June 30, 2018
|
|
Redeemable Noncontrolling Interests -- Operating Partnership
|
|
Preferred
Stock
|
|
Number of
Common
Shares
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Accumulated
Dividends in
Excess of
Earnings
|
|
Accumulated
Other
Comprehensive
Loss, Net
|
|
Total
Stockholders’
Equity
|
|
Noncontrolling
Interests in
Operating
Partnership
|
|
Noncontrolling
Interests in
Consolidated
Joint Ventures
|
|
Total
Noncontrolling
Interests
|
|
Total Equity
|
|||||||||||||||||||||||
Balance as of March 31, 2018
|
|
$
|
49,871
|
|
|
$
|
1,249,560
|
|
|
205,874,914
|
|
|
$
|
2,045
|
|
|
$
|
11,283,489
|
|
|
$
|
(2,177,269
|
)
|
|
$
|
(103,974
|
)
|
|
$
|
10,253,851
|
|
|
$
|
680,400
|
|
|
$
|
2,293
|
|
|
$
|
682,693
|
|
|
$
|
10,936,544
|
|
Conversion of common units to common stock
|
|
—
|
|
|
—
|
|
|
238,272
|
|
|
2
|
|
|
20,624
|
|
|
—
|
|
|
—
|
|
|
20,626
|
|
|
(20,626
|
)
|
|
—
|
|
|
(20,626
|
)
|
|
—
|
|
|||||||||||
Issuance of unvested restricted stock, net of forfeitures
|
|
—
|
|
|
—
|
|
|
(58,069
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Payment of offering costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(640
|
)
|
|
—
|
|
|
—
|
|
|
(640
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(640
|
)
|
|||||||||||
Amortization of share-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,943
|
|
|
—
|
|
|
—
|
|
|
9,943
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,943
|
|
|||||||||||
Reclassification of vested share-based awards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(350
|
)
|
|
—
|
|
|
—
|
|
|
(350
|
)
|
|
350
|
|
|
—
|
|
|
350
|
|
|
—
|
|
|||||||||||
Adjustment to redeemable noncontrolling interests—operating partnership
|
|
2,934
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,934
|
)
|
|
—
|
|
|
—
|
|
|
(2,934
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,934
|
)
|
|||||||||||
Dividends declared on preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20,329
|
)
|
|
—
|
|
|
(20,329
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20,329
|
)
|
|||||||||||
Dividends and distributions on common stock and common and incentive units
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(208,071
|
)
|
|
—
|
|
|
(208,071
|
)
|
|
(8,438
|
)
|
|
—
|
|
|
(8,438
|
)
|
|
(216,509
|
)
|
|||||||||||
Cumulative effect adjustment from adoption of new accounting standard
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,915
|
|
|
—
|
|
|
5,915
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,915
|
|
|||||||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
85,463
|
|
|
—
|
|
|
85,463
|
|
|
2,700
|
|
|
(4
|
)
|
|
2,696
|
|
|
88,159
|
|
|||||||||||
Other comprehensive loss—foreign currency translation adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,952
|
)
|
|
(6,952
|
)
|
|
(281
|
)
|
|
—
|
|
|
(281
|
)
|
|
(7,233
|
)
|
|||||||||||
Other comprehensive income—fair value of interest rate swaps
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,609
|
|
|
4,609
|
|
|
186
|
|
|
—
|
|
|
186
|
|
|
4,795
|
|
|||||||||||
Other comprehensive loss—reclassification of accumulated other comprehensive income to interest expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(753
|
)
|
|
(753
|
)
|
|
(30
|
)
|
|
—
|
|
|
(30
|
)
|
|
(783
|
)
|
|||||||||||
Balance as of June 30, 2018
|
|
$
|
52,805
|
|
|
$
|
1,249,560
|
|
|
206,055,117
|
|
|
$
|
2,047
|
|
|
$
|
11,310,132
|
|
|
$
|
(2,314,291
|
)
|
|
$
|
(107,070
|
)
|
|
$
|
10,140,378
|
|
|
$
|
654,261
|
|
|
$
|
2,289
|
|
|
$
|
656,550
|
|
|
$
|
10,796,928
|
|
|
Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
182,321
|
|
|
$
|
198,254
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Gain on deconsolidation / sale of properties, net
|
(67,497
|
)
|
|
(53,465
|
)
|
||
Unrealized gain on equity investment
|
(18,913
|
)
|
|
(3,136
|
)
|
||
Impairment of investments in real estate
|
5,351
|
|
|
—
|
|
||
Equity in earnings of unconsolidated joint ventures
|
(16,179
|
)
|
|
(14,848
|
)
|
||
Distributions from unconsolidated joint ventures
|
20,856
|
|
|
10,422
|
|
||
Write-off due to early lease terminations
|
9,634
|
|
|
583
|
|
||
Depreciation and amortization of buildings and improvements, tenant improvements
and acquired ground leases |
409,362
|
|
|
378,734
|
|
||
Amortization of acquired in-place lease value and deferred leasing costs
|
192,686
|
|
|
214,843
|
|
||
Amortization of share-based compensation
|
17,060
|
|
|
14,828
|
|
||
Non-cash amortization of terminated swaps
|
523
|
|
|
558
|
|
||
Allowance for doubtful accounts
|
4,813
|
|
|
2,120
|
|
||
Amortization of deferred financing costs
|
7,399
|
|
|
6,013
|
|
||
Loss from early extinguishment of debt
|
4,090
|
|
|
—
|
|
||
Amortization of debt discount/premium
|
1,228
|
|
|
1,711
|
|
||
Amortization of acquired above-market leases and acquired below-market leases, net
|
10,163
|
|
|
13,452
|
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Accounts and other receivables
|
(45,028
|
)
|
|
(9,312
|
)
|
||
Deferred rent
|
(28,015
|
)
|
|
(18,955
|
)
|
||
Deferred leasing costs
|
(14,133
|
)
|
|
(11,946
|
)
|
||
Other assets
|
(24,061
|
)
|
|
2,959
|
|
||
Accounts payable, operating lease liabilities and other accrued liabilities
|
176,367
|
|
|
(50,252
|
)
|
||
Security deposits and prepaid rents
|
(715
|
)
|
|
(9,475
|
)
|
||
Net cash provided by operating activities
|
827,312
|
|
|
673,088
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Improvements to investments in real estate
|
(780,571
|
)
|
|
(613,841
|
)
|
||
Acquisitions of real estate
|
(59,397
|
)
|
|
(76,286
|
)
|
||
Proceeds from sale of properties, net of sales costs
|
—
|
|
|
195,385
|
|
||
Proceeds from the Ascenty joint venture transaction
|
702,439
|
|
|
—
|
|
||
Deconsolidation of Ascenty cash
|
(97,081
|
)
|
|
—
|
|
||
Contributions to unconsolidated joint ventures
|
(66,622
|
)
|
|
(348
|
)
|
||
Prepaid construction costs and other investments
|
(76,863
|
)
|
|
(27,869
|
)
|
||
Improvement advances to tenants
|
(25,029
|
)
|
|
(25,054
|
)
|
||
Collection of improvement advances to tenants
|
16,611
|
|
|
22,433
|
|
||
Net cash used in investing activities
|
(386,513
|
)
|
|
(525,580
|
)
|
|
Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
Cash flows from financing activities:
|
|
|
|
||||
Borrowings on global revolving credit facility
|
$
|
2,182,573
|
|
|
$
|
773,811
|
|
Repayments on global revolving credit facility
|
(2,418,142
|
)
|
|
(853,697
|
)
|
||
Repayments on unsecured term loans
|
(375,000
|
)
|
|
(21,376
|
)
|
||
Borrowings on unsecured senior notes
|
2,325,566
|
|
|
649,038
|
|
||
Repayments on unsecured senior notes
|
(1,368,892
|
)
|
|
—
|
|
||
Principal payments on mortgage loans
|
(315
|
)
|
|
(290
|
)
|
||
Payment of loan fees and costs
|
(16,723
|
)
|
|
(6,461
|
)
|
||
Premium paid for early extinguishment of debt
|
(29,701
|
)
|
|
—
|
|
||
Capital contributions from noncontrolling interests in consolidated joint ventures, net
|
62,748
|
|
|
62
|
|
||
Taxes paid related to net settlement of stock-based compensation awards
|
—
|
|
|
(4,718
|
)
|
||
Proceeds from common and preferred stock offerings, net
|
202,288
|
|
|
(652
|
)
|
||
Redemption of preferred stock
|
(365,050
|
)
|
|
—
|
|
||
Proceeds from equity plans
|
2,259
|
|
|
2,509
|
|
||
Proceeds from forward swap contract
|
—
|
|
|
1,560
|
|
||
Payment of dividends to preferred stockholders
|
(37,613
|
)
|
|
(40,658
|
)
|
||
Payment of dividends to common stockholders and distributions to
noncontrolling interests in operating partnership |
(686,929
|
)
|
|
(632,967
|
)
|
||
Net cash used in financing activities
|
(522,931
|
)
|
|
(133,839
|
)
|
||
Net (decrease) increase in cash, cash equivalents and restricted cash
|
(82,132
|
)
|
|
13,669
|
|
||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(12,018
|
)
|
|
182
|
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
135,222
|
|
|
13,181
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
$
|
41,072
|
|
|
$
|
27,032
|
|
|
Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
Supplemental disclosure of cash flow information:
|
|
|
|
||||
Cash paid for interest, net of amounts capitalized
|
$
|
169,468
|
|
|
$
|
146,650
|
|
Cash paid for income taxes
|
7,931
|
|
|
5,510
|
|
||
Operating cash paid used in the measurement of operating lease liabilities
|
44,317
|
|
|
—
|
|
||
Supplementary disclosure of noncash operating activities:
|
|
|
|
||||
Right-of-use assets obtained in exchange for new operating lease liabilities
|
$
|
689,917
|
|
|
$
|
—
|
|
Supplementary disclosure of noncash investing and financing activities:
|
|
|
|
||||
Change in net assets related to foreign currency translation adjustments
|
$
|
41,843
|
|
|
$
|
(10,976
|
)
|
(Decrease) increase in other assets related to change in
fair value of interest rate swaps |
(10,379
|
)
|
|
13,411
|
|
||
Decrease to goodwill and deferred tax liability
(classified within accounts payable and other accrued liabilities) |
(9,436
|
)
|
|
—
|
|
||
Noncontrolling interests in operating partnership converted to shares of common stock
|
145,106
|
|
|
35,827
|
|
||
Accrual for additions to investments in real estate and tenant improvement advances
included in accounts payable and accrued expenses |
214,181
|
|
|
202,377
|
|
||
Addition to leasehold improvements pursuant to capital lease obligation
|
—
|
|
|
73,873
|
|
||
|
|
|
|
||||
Deconsolidation of Ascenty:
|
|
|
|
||||
Investment in real estate
|
$
|
(362,951
|
)
|
|
$
|
—
|
|
Account receivables
|
(24,977
|
)
|
|
—
|
|
||
Acquired in-place lease value, deferred leasing costs and intangibles
|
(480,128
|
)
|
|
—
|
|
||
Goodwill
|
(967,189
|
)
|
|
—
|
|
||
Other assets
|
(31,099
|
)
|
|
—
|
|
||
Secured debt
|
571,873
|
|
|
—
|
|
||
Accounts payable and other accrued liabilities
|
72,449
|
|
|
|
|||
Accumulated other comprehensive loss
|
(21,687
|
)
|
|
|
|||
Deconsolidation of Ascenty cash
|
(97,081
|
)
|
|
|
|||
Net carrying value of Ascenty assets and liabilities deconsolidated
|
$
|
(1,340,790
|
)
|
|
$
|
—
|
|
|
|
|
|
||||
Recognition of retained equity investment in unconsolidated Ascenty joint venture
|
$
|
727,439
|
|
|
$
|
—
|
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
|
|
|
|
||||
ASSETS
|
|
|
|
||||
Investments in real estate:
|
|
|
|
||||
Properties:
|
|
|
|
||||
Land
|
$
|
847,763
|
|
|
$
|
859,113
|
|
Acquired ground leases
|
10,511
|
|
|
10,575
|
|
||
Buildings and improvements
|
15,855,729
|
|
|
15,610,992
|
|
||
Tenant improvements
|
610,412
|
|
|
574,336
|
|
||
Total investments in operating properties
|
17,324,415
|
|
|
17,055,016
|
|
||
Accumulated depreciation and amortization
|
(4,312,357
|
)
|
|
(3,935,267
|
)
|
||
Net investments in operating properties
|
13,012,058
|
|
|
13,119,749
|
|
||
Construction in progress and space held for development
|
1,685,057
|
|
|
1,621,928
|
|
||
Land held for future development
|
152,368
|
|
|
162,941
|
|
||
Net investments in properties
|
14,849,483
|
|
|
14,904,618
|
|
||
Investments in unconsolidated joint ventures
|
979,350
|
|
|
175,108
|
|
||
Net investments in real estate
|
15,828,833
|
|
|
15,079,726
|
|
||
Operating lease right-of-use assets
|
648,952
|
|
|
—
|
|
||
Cash and cash equivalents
|
33,536
|
|
|
126,700
|
|
||
Accounts and other receivables, net
|
320,938
|
|
|
299,621
|
|
||
Deferred rent, net
|
491,486
|
|
|
463,248
|
|
||
Acquired above-market leases, net
|
94,474
|
|
|
119,759
|
|
||
Goodwill
|
3,353,538
|
|
|
4,348,007
|
|
||
Acquired in-place lease value, deferred leasing costs and intangibles, net
|
2,499,564
|
|
|
3,144,395
|
|
||
Other assets
|
158,770
|
|
|
185,239
|
|
||
Total assets
|
$
|
23,430,091
|
|
|
$
|
23,766,695
|
|
LIABILITIES AND CAPITAL
|
|
|
|
||||
Global revolving credit facilities
|
$
|
1,417,675
|
|
|
$
|
1,647,735
|
|
Unsecured term loan
|
807,922
|
|
|
1,178,904
|
|
||
Unsecured senior notes, net of discount
|
8,511,656
|
|
|
7,589,126
|
|
||
Secured debt, including premiums
|
105,325
|
|
|
685,714
|
|
||
Operating lease liabilities
|
714,256
|
|
|
—
|
|
||
Accounts payable and other accrued liabilities
|
984,812
|
|
|
1,164,509
|
|
||
Accrued dividends and distributions
|
—
|
|
|
217,241
|
|
||
Acquired below-market leases, net
|
183,832
|
|
|
200,113
|
|
||
Security deposits and prepaid rents
|
213,549
|
|
|
209,311
|
|
||
Total liabilities
|
12,939,027
|
|
|
12,892,653
|
|
||
Redeemable limited partner common units
|
17,344
|
|
|
15,832
|
|
||
Commitments and contingencies
|
|
|
|
||||
Capital:
|
|
|
|
||||
Partners’ capital:
|
|
|
|
||||
General Partner:
|
|
|
|
||||
Preferred units, 44,450,000 and 50,650,000 units issued and outstanding as of June 30, 2019 and December 31, 2018, respectively
|
1,099,534
|
|
|
1,249,560
|
|
||
Common units, 208,324,538 and 206,425,656 units issued and outstanding as of June 30, 2019 and December 31, 2018, respectively
|
8,552,279
|
|
|
8,724,731
|
|
||
Limited Partners, 9,370,049 and 10,580,884 units issued and outstanding as of June 30, 2019 and December 31, 2018, respectively
|
759,641
|
|
|
911,256
|
|
||
Accumulated other comprehensive loss
|
(93,179
|
)
|
|
(120,393
|
)
|
||
Total partners’ capital
|
10,318,275
|
|
|
10,765,154
|
|
||
Noncontrolling interests in consolidated joint ventures
|
155,445
|
|
|
93,056
|
|
||
Total capital
|
10,473,720
|
|
|
10,858,210
|
|
||
Total liabilities and capital
|
$
|
23,430,091
|
|
|
$
|
23,766,695
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Operating Revenues:
|
|
|
|
|
|
|
|
||||||||
Rental and other services
|
$
|
799,386
|
|
|
$
|
596,326
|
|
|
$
|
1,611,416
|
|
|
$
|
1,188,624
|
|
Tenant reimbursements
|
—
|
|
|
155,723
|
|
|
—
|
|
|
305,802
|
|
||||
Fee income and other
|
1,411
|
|
|
2,870
|
|
|
3,896
|
|
|
4,861
|
|
||||
Total operating revenues
|
800,797
|
|
|
754,919
|
|
|
1,615,312
|
|
|
1,499,287
|
|
||||
Operating Expenses:
|
|
|
|
|
|
|
|
||||||||
Rental property operating and maintenance
|
252,032
|
|
|
230,322
|
|
|
506,986
|
|
|
455,962
|
|
||||
Property taxes and insurance
|
44,923
|
|
|
29,890
|
|
|
85,229
|
|
|
68,884
|
|
||||
Depreciation and amortization
|
290,562
|
|
|
298,788
|
|
|
602,048
|
|
|
593,577
|
|
||||
General and administrative
|
52,983
|
|
|
46,099
|
|
|
106,442
|
|
|
82,622
|
|
||||
Transactions and integration
|
4,210
|
|
|
5,606
|
|
|
6,704
|
|
|
9,784
|
|
||||
Impairment of investments in real estate
|
—
|
|
|
—
|
|
|
5,351
|
|
|
—
|
|
||||
Other
|
7,115
|
|
|
152
|
|
|
12,037
|
|
|
583
|
|
||||
Total operating expenses
|
651,825
|
|
|
610,857
|
|
|
1,324,797
|
|
|
1,211,412
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating income
|
148,972
|
|
|
144,062
|
|
|
290,515
|
|
|
287,875
|
|
||||
Other Income (Expenses):
|
|
|
|
|
|
|
|
||||||||
Equity in earnings of unconsolidated joint ventures
|
6,962
|
|
|
7,438
|
|
|
16,179
|
|
|
14,848
|
|
||||
Gain on deconsolidation / sale of properties, net
|
—
|
|
|
14,192
|
|
|
67,497
|
|
|
53,465
|
|
||||
Interest and other income, net
|
16,980
|
|
|
3,398
|
|
|
38,424
|
|
|
3,356
|
|
||||
Interest expense
|
(86,051
|
)
|
|
(78,810
|
)
|
|
(187,603
|
)
|
|
(155,795
|
)
|
||||
Tax expense
|
(4,634
|
)
|
|
(2,121
|
)
|
|
(8,900
|
)
|
|
(5,495
|
)
|
||||
Loss from early extinguishment of debt
|
(20,905
|
)
|
|
—
|
|
|
(33,791
|
)
|
|
—
|
|
||||
Net income
|
61,324
|
|
|
88,159
|
|
|
182,321
|
|
|
198,254
|
|
||||
Net loss attributable to noncontrolling interests in consolidated joint ventures
|
244
|
|
|
4
|
|
|
359
|
|
|
16
|
|
||||
Net income attributable to Digital Realty Trust, L.P.
|
61,568
|
|
|
88,163
|
|
|
182,680
|
|
|
198,270
|
|
||||
Preferred units distributions, including undeclared distributions
|
(16,670
|
)
|
|
(20,329
|
)
|
|
(37,613
|
)
|
|
(40,658
|
)
|
||||
Issuance costs associated with redeemed
preferred units |
(11,760
|
)
|
|
—
|
|
|
(11,760
|
)
|
|
—
|
|
||||
Net income available to common unitholders
|
$
|
33,138
|
|
|
$
|
67,834
|
|
|
$
|
133,307
|
|
|
$
|
157,612
|
|
Net income per unit available to common unitholders:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.15
|
|
|
$
|
0.32
|
|
|
$
|
0.61
|
|
|
$
|
0.74
|
|
Diluted
|
$
|
0.15
|
|
|
$
|
0.32
|
|
|
$
|
0.61
|
|
|
$
|
0.73
|
|
Weighted average common units outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
217,346,153
|
|
|
214,288,199
|
|
|
217,193,571
|
|
|
214,149,188
|
|
||||
Diluted
|
218,497,318
|
|
|
214,895,273
|
|
|
218,039,658
|
|
|
214,773,601
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income
|
$
|
61,324
|
|
|
$
|
88,159
|
|
|
$
|
182,321
|
|
|
$
|
198,254
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
10,963
|
|
|
(7,233
|
)
|
|
20,156
|
|
|
(10,976
|
)
|
||||
Reclassification of foreign currency translation
adjustment due to deconsolidation of Ascenty |
—
|
|
|
—
|
|
|
21,687
|
|
|
—
|
|
||||
(Decrease) increase in fair value of interest rate swaps and foreign currency hedges
|
(6,604
|
)
|
|
4,795
|
|
|
(10,379
|
)
|
|
13,411
|
|
||||
Reclassification to interest expense from interest rate swaps
|
(2,156
|
)
|
|
(783
|
)
|
|
(4,250
|
)
|
|
(1,018
|
)
|
||||
Comprehensive income
|
$
|
63,527
|
|
|
$
|
84,938
|
|
|
$
|
209,535
|
|
|
$
|
199,671
|
|
Comprehensive loss attributable to noncontrolling interests in consolidated joint ventures
|
244
|
|
|
4
|
|
|
359
|
|
|
16
|
|
||||
Comprehensive income attributable to Digital Realty Trust, L.P.
|
$
|
63,771
|
|
|
$
|
84,942
|
|
|
$
|
209,894
|
|
|
$
|
199,687
|
|
|
Redeemable Limited Partner Common Units
|
|
General Partner
|
|
Limited Partners
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total Partners' Capital
|
|
Noncontrolling
Interests in
Consolidated Joint
Ventures
|
|
Total Capital
|
|||||||||||||||||||||||||||
|
|
Preferred Units
|
|
Common Units
|
|
Common Units
|
|
|
|
|
||||||||||||||||||||||||||||||
Six Months Ended June 30, 2019
|
|
Units
|
|
Amount
|
|
Units
|
|
Amount
|
|
Units
|
|
Amount
|
|
|
|
|
||||||||||||||||||||||||
Balance as of December 31, 2018
|
$
|
15,832
|
|
|
50,650,000
|
|
|
$
|
1,249,560
|
|
|
206,425,656
|
|
|
$
|
8,724,731
|
|
|
10,580,884
|
|
|
$
|
911,256
|
|
|
$
|
(120,393
|
)
|
|
$
|
10,765,154
|
|
|
$
|
93,056
|
|
|
$
|
10,858,210
|
|
Conversion of limited partner common units to general partner common units
|
—
|
|
|
—
|
|
|
—
|
|
|
1,622,940
|
|
|
145,106
|
|
|
(1,622,940
|
)
|
|
(145,106
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Issuance of unvested restricted common units, net of forfeitures
|
—
|
|
|
—
|
|
|
—
|
|
|
250,708
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Payment of offering costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(976
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(976
|
)
|
|
—
|
|
|
(976
|
)
|
||||||||
Issuance of common units, net of forfeitures
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
412,105
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Units issued in connection with employee stock purchase plan
|
—
|
|
|
—
|
|
|
—
|
|
|
25,234
|
|
|
2,259
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,259
|
|
|
—
|
|
|
2,259
|
|
||||||||
Issuance of series K preferred units, net of offering costs
|
—
|
|
|
8,400,000
|
|
|
203,264
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
203,264
|
|
|
—
|
|
|
203,264
|
|
||||||||
Redemption of series H preferred units
|
—
|
|
|
(14,600,000
|
)
|
|
(353,290
|
)
|
|
—
|
|
|
(11,760
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(365,050
|
)
|
|
—
|
|
|
(365,050
|
)
|
||||||||
Amortization of share-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,861
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,861
|
|
|
—
|
|
|
18,861
|
|
||||||||
Reclassification of vested share-based awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,712
|
)
|
|
—
|
|
|
7,712
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Adjustment to redeemable partnership units
|
1,754
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,754
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,754
|
)
|
|
—
|
|
|
(1,754
|
)
|
||||||||
Distributions
|
(338
|
)
|
|
—
|
|
|
(37,613
|
)
|
|
—
|
|
|
(449,525
|
)
|
|
—
|
|
|
(19,825
|
)
|
|
—
|
|
|
(506,963
|
)
|
|
—
|
|
|
(506,963
|
)
|
||||||||
Contributions from noncontrolling interests in consolidated joint ventures, net of distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
62,748
|
|
|
62,748
|
|
||||||||
Cumulative effect adjustment from adoption of new accounting standard
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,318
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,318
|
)
|
|
—
|
|
|
(6,318
|
)
|
||||||||
Net income
|
96
|
|
|
—
|
|
|
37,613
|
|
|
—
|
|
|
139,367
|
|
|
—
|
|
|
5,604
|
|
|
—
|
|
|
182,584
|
|
|
(359
|
)
|
|
182,225
|
|
||||||||
Other comprehensive income—foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41,843
|
|
|
41,843
|
|
|
—
|
|
|
41,843
|
|
||||||||
Other comprehensive loss—fair value of interest rate swaps
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,379
|
)
|
|
(10,379
|
)
|
|
—
|
|
|
(10,379
|
)
|
||||||||
Other comprehensive loss—reclassification of accumulated other comprehensive income to interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,250
|
)
|
|
(4,250
|
)
|
|
—
|
|
|
(4,250
|
)
|
||||||||
Balance as of June 30, 2019
|
$
|
17,344
|
|
|
44,450,000
|
|
|
$
|
1,099,534
|
|
|
208,324,538
|
|
|
$
|
8,552,279
|
|
|
9,370,049
|
|
|
$
|
759,641
|
|
|
$
|
(93,179
|
)
|
|
$
|
10,318,275
|
|
|
$
|
155,445
|
|
|
$
|
10,473,720
|
|
|
Redeemable Limited Partner Common Units
|
|
General Partner
|
|
Limited Partners
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total Partners' Capital
|
|
Noncontrolling
Interests in
Consolidated Joint
Ventures
|
|
Total Capital
|
|||||||||||||||||||||||||||
|
|
Preferred Units
|
|
Common Units
|
|
Common Units
|
|
|
|
|
||||||||||||||||||||||||||||||
Three Months Ended June 30, 2019
|
|
Units
|
|
Amount
|
|
Units
|
|
Amount
|
|
Units
|
|
Amount
|
|
|
|
|
||||||||||||||||||||||||
Balance as of March 31, 2019
|
$
|
17,678
|
|
|
59,050,000
|
|
|
$
|
1,452,983
|
|
|
208,214,139
|
|
|
$
|
8,727,124
|
|
|
9,473,459
|
|
|
$
|
776,614
|
|
|
$
|
(95,382
|
)
|
|
$
|
10,861,339
|
|
|
$
|
121,160
|
|
|
$
|
10,982,499
|
|
Conversion of limited partner common units to general partner common units
|
—
|
|
|
—
|
|
|
—
|
|
|
105,064
|
|
|
9,097
|
|
|
(105,064
|
)
|
|
(9,097
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Issuance of unvested restricted common units, net of forfeitures
|
—
|
|
|
—
|
|
|
—
|
|
|
5,335
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Issuance of common units, net of offering costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(601
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(601
|
)
|
|
—
|
|
|
(601
|
)
|
||||||||
Issuance of common units, net of forfeitures
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,654
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Issuance of series K preferred units, net of offering costs
|
—
|
|
|
—
|
|
|
(159
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(159
|
)
|
|
—
|
|
|
(159
|
)
|
||||||||
Redemption of series H preferred units
|
—
|
|
|
(14,600,000
|
)
|
|
(353,290
|
)
|
|
—
|
|
|
(11,760
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(365,050
|
)
|
|
—
|
|
|
(365,050
|
)
|
||||||||
Amortization of share-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,461
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,461
|
|
|
—
|
|
|
10,461
|
|
||||||||
Reclassification of vested share-based awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(392
|
)
|
|
—
|
|
|
392
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Adjustment to redeemable partnership units
|
(189
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
189
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
189
|
|
|
—
|
|
|
189
|
|
||||||||
Distributions
|
(169
|
)
|
|
—
|
|
|
(17,284
|
)
|
|
—
|
|
|
(224,723
|
)
|
|
—
|
|
|
(9,644
|
)
|
|
—
|
|
|
(251,651
|
)
|
|
—
|
|
|
(251,651
|
)
|
||||||||
Contributions from noncontrolling interests in consolidated joint ventures, net of distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34,529
|
|
|
34,529
|
|
||||||||
Net income
|
24
|
|
|
—
|
|
|
17,284
|
|
|
—
|
|
|
42,884
|
|
|
—
|
|
|
1,376
|
|
|
—
|
|
|
61,544
|
|
|
(244
|
)
|
|
61,300
|
|
||||||||
Other comprehensive income—foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,963
|
|
|
10,963
|
|
|
—
|
|
|
10,963
|
|
||||||||
Other comprehensive loss—fair value of interest rate swaps
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,604
|
)
|
|
(6,604
|
)
|
|
—
|
|
|
(6,604
|
)
|
||||||||
Other comprehensive loss—reclassification of accumulated other comprehensive income to interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,156
|
)
|
|
(2,156
|
)
|
|
—
|
|
|
(2,156
|
)
|
||||||||
Balance as of June 30, 2019
|
$
|
17,344
|
|
|
44,450,000
|
|
|
$
|
1,099,534
|
|
|
208,324,538
|
|
|
$
|
8,552,279
|
|
|
9,370,049
|
|
|
$
|
759,641
|
|
|
$
|
(93,179
|
)
|
|
$
|
10,318,275
|
|
|
$
|
155,445
|
|
|
$
|
10,473,720
|
|
|
Redeemable Limited Partner Common Units
|
|
General Partner
|
|
Limited Partners
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total Partners' Capital
|
|
Noncontrolling
Interests in
Consolidated Joint
Ventures
|
|
Total Capital
|
|||||||||||||||||||||||||||
|
|
Preferred Units
|
|
Common Units
|
|
Common Units
|
|
|
|
|
||||||||||||||||||||||||||||||
Six Months Ended June 30, 2018
|
|
Units
|
|
Amount
|
|
Units
|
|
Amount
|
|
Units
|
|
Amount
|
|
|
|
|
||||||||||||||||||||||||
Balance as of December 31, 2017
|
$
|
53,902
|
|
|
50,650,000
|
|
|
$
|
1,249,560
|
|
|
205,470,300
|
|
|
$
|
9,207,953
|
|
|
8,489,095
|
|
|
$
|
702,579
|
|
|
$
|
(112,885
|
)
|
|
$
|
11,047,207
|
|
|
$
|
2,243
|
|
|
$
|
11,049,450
|
|
Conversion of limited partner common units to general partner common units
|
—
|
|
|
—
|
|
|
—
|
|
|
406,639
|
|
|
35,827
|
|
|
(406,639
|
)
|
|
(35,827
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Issuance of unvested restricted common units, net of forfeitures
|
—
|
|
|
—
|
|
|
—
|
|
|
193,118
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Payment of offering costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(652
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(652
|
)
|
|
—
|
|
|
(652
|
)
|
||||||||
Issuance of common units, net of forfeitures
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
415,576
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Units issued in connection with employee stock purchase plan
|
—
|
|
|
—
|
|
|
—
|
|
|
31,893
|
|
|
2,509
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,509
|
|
|
—
|
|
|
2,509
|
|
||||||||
Units repurchased and retired to satisfy tax withholding upon vesting
|
—
|
|
|
—
|
|
|
—
|
|
|
(46,833
|
)
|
|
(4,718
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,718
|
)
|
|
—
|
|
|
(4,718
|
)
|
||||||||
Amortization of share-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,458
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,458
|
|
|
—
|
|
|
17,458
|
|
||||||||
Reclassification of vested share-based awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,847
|
)
|
|
—
|
|
|
2,847
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Adjustment to redeemable partnership units
|
(1,097
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,097
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,097
|
|
|
—
|
|
|
1,097
|
|
||||||||
Distributions
|
—
|
|
|
—
|
|
|
(40,658
|
)
|
|
—
|
|
|
(416,086
|
)
|
|
—
|
|
|
(17,120
|
)
|
|
—
|
|
|
(473,864
|
)
|
|
—
|
|
|
(473,864
|
)
|
||||||||
Contributions from noncontrolling interests in consolidated joint ventures, net of distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
62
|
|
|
62
|
|
||||||||
Cumulative effect adjustment from adoption of new accounting standard
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,915
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,915
|
|
|
—
|
|
|
5,915
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
40,658
|
|
|
—
|
|
|
151,432
|
|
|
—
|
|
|
6,180
|
|
|
—
|
|
|
198,270
|
|
|
(16
|
)
|
|
198,254
|
|
||||||||
Other comprehensive loss—foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,976
|
)
|
|
(10,976
|
)
|
|
—
|
|
|
(10,976
|
)
|
||||||||
Other comprehensive income—fair value of interest rate swaps
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,411
|
|
|
13,411
|
|
|
—
|
|
|
13,411
|
|
||||||||
Other comprehensive loss—reclassification of accumulated other comprehensive income to interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,018
|
)
|
|
(1,018
|
)
|
|
—
|
|
|
(1,018
|
)
|
||||||||
Balance as of June 30, 2018
|
$
|
52,805
|
|
|
50,650,000
|
|
|
$
|
1,249,560
|
|
|
206,055,117
|
|
|
$
|
8,997,888
|
|
|
8,498,032
|
|
|
$
|
658,659
|
|
|
$
|
(111,468
|
)
|
|
$
|
10,794,639
|
|
|
$
|
2,289
|
|
|
$
|
10,796,928
|
|
|
Redeemable Limited Partner Common Units
|
|
General Partner
|
|
Limited Partners
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total Partners' Capital
|
|
Noncontrolling
Interests in
Consolidated Joint
Ventures
|
|
Total Capital
|
|||||||||||||||||||||||||||
|
|
Preferred Units
|
|
Common Units
|
|
Common Units
|
|
|
|
|
||||||||||||||||||||||||||||||
Three Months Ended June 30, 2018
|
|
Units
|
|
Amount
|
|
Units
|
|
Amount
|
|
Units
|
|
Amount
|
|
|
|
|
||||||||||||||||||||||||
Balance as of March 31, 2018
|
$
|
49,871
|
|
|
50,650,000
|
|
|
$
|
1,249,560
|
|
|
205,874,914
|
|
|
$
|
9,108,265
|
|
|
8,736,488
|
|
|
$
|
684,673
|
|
|
$
|
(108,247
|
)
|
|
$
|
10,934,251
|
|
|
$
|
2,293
|
|
|
$
|
10,936,544
|
|
Conversion of limited partner common units to general partner common units
|
—
|
|
|
—
|
|
|
—
|
|
|
238,272
|
|
|
20,626
|
|
|
(238,272
|
)
|
|
(20,626
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Issuance of unvested restricted common units, net of forfeitures
|
—
|
|
|
—
|
|
|
—
|
|
|
(58,069
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Payment of offering costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(640
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(640
|
)
|
|
—
|
|
|
(640
|
)
|
||||||||
Issuance of common units, net of forfeitures
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(184
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Amortization of share-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,943
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,943
|
|
|
—
|
|
|
9,943
|
|
||||||||
Reclassification of vested share-based awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(350
|
)
|
|
—
|
|
|
350
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Adjustment to redeemable partnership units
|
2,934
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,934
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,934
|
)
|
|
—
|
|
|
(2,934
|
)
|
||||||||
Distributions
|
—
|
|
|
—
|
|
|
(20,329
|
)
|
|
—
|
|
|
(208,071
|
)
|
|
—
|
|
|
(8,438
|
)
|
|
—
|
|
|
(236,838
|
)
|
|
—
|
|
|
(236,838
|
)
|
||||||||
Cumulative effect adjustment from adoption of new accounting standard
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,915
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,915
|
|
|
—
|
|
|
5,915
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
20,329
|
|
|
—
|
|
|
65,134
|
|
|
—
|
|
|
2,700
|
|
|
—
|
|
|
88,163
|
|
|
(4
|
)
|
|
88,159
|
|
||||||||
Other comprehensive loss—foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,233
|
)
|
|
(7,233
|
)
|
|
—
|
|
|
(7,233
|
)
|
||||||||
Other comprehensive income—fair value of interest rate swaps
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,795
|
|
|
4,795
|
|
|
—
|
|
|
4,795
|
|
||||||||
Other comprehensive loss—reclassification of accumulated other comprehensive income to interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(783
|
)
|
|
(783
|
)
|
|
—
|
|
|
(783
|
)
|
||||||||
Balance as of June 30, 2018
|
$
|
52,805
|
|
|
50,650,000
|
|
|
$
|
1,249,560
|
|
|
206,055,117
|
|
|
$
|
8,997,888
|
|
|
8,498,032
|
|
|
$
|
658,659
|
|
|
$
|
(111,468
|
)
|
|
$
|
10,794,639
|
|
|
$
|
2,289
|
|
|
$
|
10,796,928
|
|
|
Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
182,321
|
|
|
$
|
198,254
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Gain on deconsolidation / sale of properties, net
|
(67,497
|
)
|
|
(53,465
|
)
|
||
Unrealized gain on equity investment
|
(18,913
|
)
|
|
(3,136
|
)
|
||
Impairment of investments in real estate
|
5,351
|
|
|
—
|
|
||
Equity in earnings of unconsolidated joint ventures
|
(16,179
|
)
|
|
(14,848
|
)
|
||
Distributions from unconsolidated joint ventures
|
20,856
|
|
|
10,422
|
|
||
Write-off due to early lease terminations
|
9,634
|
|
|
583
|
|
||
Depreciation and amortization of buildings and improvements, tenant improvements
and acquired ground leases |
409,362
|
|
|
378,734
|
|
||
Amortization of acquired in-place lease value and deferred leasing costs
|
192,686
|
|
|
214,843
|
|
||
Amortization of share-based compensation
|
17,060
|
|
|
14,828
|
|
||
Non-cash amortization of terminated swaps
|
523
|
|
|
558
|
|
||
Allowance for doubtful accounts
|
4,813
|
|
|
2,120
|
|
||
Amortization of deferred financing costs
|
7,399
|
|
|
6,013
|
|
||
Loss from early extinguishment of debt
|
4,090
|
|
|
—
|
|
||
Amortization of debt discount/premium
|
1,228
|
|
|
1,711
|
|
||
Amortization of acquired above-market leases and acquired below-market leases, net
|
10,163
|
|
|
13,452
|
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Accounts and other receivables
|
(45,028
|
)
|
|
(9,312
|
)
|
||
Deferred rent
|
(28,015
|
)
|
|
(18,955
|
)
|
||
Deferred leasing costs
|
(14,133
|
)
|
|
(11,946
|
)
|
||
Other assets
|
(24,061
|
)
|
|
2,959
|
|
||
Accounts payable, operating lease liabilities and other accrued liabilities
|
176,367
|
|
|
(50,252
|
)
|
||
Security deposits and prepaid rents
|
(715
|
)
|
|
(9,475
|
)
|
||
Net cash provided by operating activities
|
827,312
|
|
|
673,088
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Improvements to investments in real estate
|
(780,571
|
)
|
|
(613,841
|
)
|
||
Acquisitions of real estate
|
(59,397
|
)
|
|
(76,286
|
)
|
||
Proceeds from sale of properties, net of sales costs
|
—
|
|
|
195,385
|
|
||
Proceeds from the Ascenty joint venture transaction
|
702,439
|
|
|
—
|
|
||
Deconsolidation of Ascenty cash
|
(97,081
|
)
|
|
—
|
|
||
Contributions to unconsolidated joint ventures
|
(66,622
|
)
|
|
(348
|
)
|
||
Prepaid construction costs and other investments
|
(76,863
|
)
|
|
(27,869
|
)
|
||
Improvement advances to tenants
|
(25,029
|
)
|
|
(25,054
|
)
|
||
Collection of improvement advances to tenants
|
16,611
|
|
|
22,433
|
|
||
Net cash used in investing activities
|
(386,513
|
)
|
|
(525,580
|
)
|
|
Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
Cash flows from financing activities:
|
|
|
|
||||
Borrowings on global revolving credit facility
|
$
|
2,182,573
|
|
|
$
|
773,811
|
|
Repayments on global revolving credit facility
|
(2,418,142
|
)
|
|
(853,697
|
)
|
||
Repayments on unsecured term loans
|
(375,000
|
)
|
|
(21,376
|
)
|
||
Borrowings on unsecured senior notes
|
2,325,566
|
|
|
649,038
|
|
||
Repayments on unsecured senior notes
|
(1,368,892
|
)
|
|
—
|
|
||
Principal payments on mortgage loans
|
(315
|
)
|
|
(290
|
)
|
||
Payment of loan fees and costs
|
(16,723
|
)
|
|
(6,461
|
)
|
||
Premium paid for early extinguishment of debt
|
(29,701
|
)
|
|
—
|
|
||
Capital contributions from noncontrolling interests in consolidated joint ventures, net
|
62,748
|
|
|
62
|
|
||
Taxes paid related to net settlement of stock-based compensation awards
|
—
|
|
|
(4,718
|
)
|
||
General partner contributions
|
204,547
|
|
|
1,857
|
|
||
General partner distributions
|
(365,050
|
)
|
|
—
|
|
||
Proceeds from forward swap contract
|
—
|
|
|
1,560
|
|
||
Payment of distributions to preferred unitholders
|
(37,613
|
)
|
|
(40,658
|
)
|
||
Payment of distributions to common unitholders
|
(686,929
|
)
|
|
(632,967
|
)
|
||
Net cash used in financing activities
|
(522,931
|
)
|
|
(133,839
|
)
|
||
Net (decrease) increase in cash, cash equivalents and restricted cash
|
(82,132
|
)
|
|
13,669
|
|
||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(12,018
|
)
|
|
182
|
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
135,222
|
|
|
13,181
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
$
|
41,072
|
|
|
$
|
27,032
|
|
|
Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
Supplemental disclosure of cash flow information:
|
|
|
|
||||
Cash paid for interest, net of amounts capitalized
|
$
|
169,468
|
|
|
$
|
146,650
|
|
Cash paid for income taxes
|
7,931
|
|
|
5,510
|
|
||
Operating cash paid used in the measurement of operating lease liabilities
|
44,317
|
|
|
—
|
|
||
Supplementary disclosure of noncash operating activities:
|
|
|
|
||||
Right-of-use assets obtained in exchange for new operating lease liabilities
|
689,917
|
|
|
$
|
—
|
|
|
Supplementary disclosure of noncash investing and financing activities:
|
|
|
|
||||
Change in net assets related to foreign currency translation adjustments
|
$
|
41,843
|
|
|
$
|
(10,976
|
)
|
Increase (decrease) in accounts payable and other accrued liabilities related to change in fair value of interest rate swaps and foreign currency hedges
|
(10,379
|
)
|
|
13,411
|
|
||
Decrease to goodwill and deferred tax liability
(classified within accounts payable and other accrued liabilities) |
(9,436
|
)
|
|
—
|
|
||
Limited Partner common units converted to General Partner common units
|
145,106
|
|
|
35,827
|
|
||
Accrual for additions to investments in real estate and tenant improvement advances
included in accounts payable and accrued expenses |
214,181
|
|
|
202,377
|
|
||
Addition to leasehold improvements pursuant to capital lease obligation
|
—
|
|
|
73,873
|
|
||
|
|
|
|
||||
Deconsolidation of Ascenty:
|
|
|
|
||||
Investment in real estate
|
$
|
(362,951
|
)
|
|
$
|
—
|
|
Account receivables
|
(24,977
|
)
|
|
—
|
|
||
Acquired in-place lease value, deferred leasing costs and intangibles
|
(480,128
|
)
|
|
—
|
|
||
Goodwill
|
(967,189
|
)
|
|
—
|
|
||
Other assets
|
(31,099
|
)
|
|
—
|
|
||
Secured debt
|
571,873
|
|
|
—
|
|
||
Accounts payable and other accrued liabilities
|
72,449
|
|
|
—
|
|
||
Accumulated other comprehensive loss
|
(21,687
|
)
|
|
—
|
|
||
Deconsolidation of Ascenty cash
|
(97,081
|
)
|
|
—
|
|
||
Net carrying value of Ascenty assets and liabilities deconsolidated
|
$
|
(1,340,790
|
)
|
|
$
|
—
|
|
|
|
|
|
||||
Recognition of retained equity investment in unconsolidated Ascenty joint venture
|
$
|
727,439
|
|
|
$
|
—
|
|
|
|
Data Centers
|
|||||||||||||
|
|
As of June 30, 2019
|
|
As of December 31, 2018
|
|||||||||||
Region
|
|
Operating
|
Unconsolidated Joint Ventures
|
Total
|
|
Operating
|
|
Unconsolidated Joint Ventures
|
Total
|
||||||
United States
|
|
132
|
|
14
|
|
146
|
|
|
131
|
|
|
14
|
|
145
|
|
Europe
|
|
40
|
|
—
|
|
40
|
|
|
38
|
|
|
—
|
|
38
|
|
Latin America
|
|
—
|
|
18
|
|
18
|
|
|
16
|
|
|
—
|
|
16
|
|
Asia
|
|
4
|
|
4
|
|
8
|
|
|
3
|
|
|
4
|
|
7
|
|
Australia
|
|
5
|
|
—
|
|
5
|
|
|
5
|
|
|
—
|
|
5
|
|
Canada
|
|
3
|
|
—
|
|
3
|
|
|
3
|
|
|
—
|
|
3
|
|
Total
|
|
184
|
|
36
|
|
220
|
|
|
196
|
|
|
18
|
|
214
|
|
•
|
enhancing investors’ understanding of the Company and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;
|
•
|
eliminating duplicative disclosure and providing a more streamlined and readable presentation since a substantial portion of the disclosure applies to both the Company and the Operating Partnership; and
|
•
|
creating time and cost efficiencies through the preparation of one set of notes instead of two separate sets of notes.
|
•
|
condensed consolidated face financial statements; and
|
•
|
the following notes to the condensed consolidated financial statements:
|
•
|
"Debt of the Company" and "Debt of the Operating Partnership";
|
•
|
"Income per Share" and "Income per Unit"; and
|
•
|
"Equity and Accumulated Other Comprehensive Loss, Net of the Company" and "Capital and Accumulated Other Comprehensive Loss of the Operating Partnership".
|
|
|
Balance as of December 31, 2018
|
|
Deconsolidation
|
|
Goodwill Adjustments (1)
|
|
Impact of Change in Foreign Exchange Rates
|
|
Balance as of June 30, 2019
|
||||||||||
Merger / Portfolio Acquisition
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Telx Acquisition
|
|
$
|
330,845
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
330,845
|
|
European Portfolio Acquisition
|
|
442,349
|
|
|
—
|
|
|
(9,436
|
)
|
|
(2,366
|
)
|
|
430,547
|
|
|||||
DFT Merger
|
|
2,592,146
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,592,146
|
|
|||||
Ascenty Acquisition
|
|
982,667
|
|
|
(982,667
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
4,348,007
|
|
|
$
|
(982,667
|
)
|
|
$
|
(9,436
|
)
|
|
$
|
(2,366
|
)
|
|
$
|
3,353,538
|
|
(1)
|
As a result of a subsequent change to an acquired deferred tax liability that would not have impacted consideration paid, goodwill was adjusted.
|
Location
|
|
Market
|
|
Date Acquired
|
|
Amount (in millions)
|
||
Land parcels (1)
|
|
Various
|
|
Various
|
|
$
|
29.6
|
|
21780 Filigree Court
|
|
Northern Virginia
|
|
May 2, 2019
|
|
28.0
|
|
|
|
|
|
|
|
|
$
|
57.6
|
|
(1)
|
Represents four currently vacant land parcels in total located in the United States, Europe and Asia which are not included in our operating property count. Purchase price in U.S. dollars and excludes capitalized closing costs.
|
|
|
Balance Sheet
Classification
|
|
Balance as of
June 30, 2019
|
||
Assets:
|
|
|
|
|
||
Operating lease assets
|
|
Operating lease right-of-use assets
|
|
$
|
648,952
|
|
Finance lease assets
|
|
Buildings and improvements
|
|
130,271
|
|
|
Total leased assets
|
|
|
|
$
|
779,223
|
|
|
|
|
|
|
||
Liabilities:
|
|
|
|
|
||
Operating lease liabilities
|
|
Operating lease liabilities
|
|
$
|
714,256
|
|
Finance lease liabilities
|
|
Accounts payable and other accrued liabilities
|
|
175,034
|
|
|
Total lease liabilities
|
|
|
|
$
|
889,290
|
|
|
|
|
|
|
Lease cost
|
|
Income Statement Classification
|
|
Three Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2019
|
||||
|
|
|
|
|
|
|
||||
Finance lease cost:
|
|
|
|
|
|
|
||||
Amortization of right-of-use
assets
|
|
Depreciation and amortization
|
|
$
|
1,280
|
|
|
$
|
2,507
|
|
Interest on lease liabilities
|
|
Interest expense
|
|
1,485
|
|
|
3,131
|
|
||
Operating lease cost
|
|
Rental property operating and maintenance / General and administrative
|
|
22,756
|
|
|
45,870
|
|
||
Total lease cost
|
|
|
|
$
|
25,521
|
|
|
$
|
51,508
|
|
|
|
|
|
|
|
|
2019
|
|
$
|
84,712
|
|
2020
|
|
87,396
|
|
|
2021
|
|
86,212
|
|
|
2022
|
|
81,976
|
|
|
2023
|
|
80,707
|
|
|
Thereafter
|
|
539,047
|
|
|
Total
|
|
$
|
960,050
|
|
2019
|
|
$
|
11,657
|
|
2020
|
|
13,108
|
|
|
2021
|
|
13,207
|
|
|
2022
|
|
13,706
|
|
|
2023
|
|
14,219
|
|
|
Thereafter
|
|
285,774
|
|
|
|
|
351,671
|
|
|
Less amount representing interest
|
|
(137,827
|
)
|
|
Present value
|
|
$
|
213,844
|
|
|
|
Operating
lease liabilities
|
|
Finance
lease liabilities
|
||||
|
|
|
|
|
||||
Remainder of 2019
|
|
$
|
42,196
|
|
|
$
|
4,270
|
|
2020
|
|
85,179
|
|
|
8,645
|
|
||
2021
|
|
83,942
|
|
|
8,692
|
|
||
2022
|
|
79,610
|
|
|
9,147
|
|
||
2023
|
|
78,343
|
|
|
9,595
|
|
||
Thereafter
|
|
547,600
|
|
|
229,856
|
|
||
Total undiscounted future cash flows
|
|
916,870
|
|
|
270,205
|
|
||
Less: Imputed interest
|
|
(202,614
|
)
|
|
(95,171
|
)
|
||
Present value of undiscounted future cash flows
|
|
$
|
714,256
|
|
|
$
|
175,034
|
|
|
|
|
|
|
|
|
Operating leases
|
||
|
|
|
||
Remainder of 2019
|
|
$
|
1,212,570
|
|
2020
|
|
2,049,915
|
|
|
2021
|
|
1,766,568
|
|
|
2022
|
|
1,451,592
|
|
|
2023
|
|
1,249,655
|
|
|
Thereafter
|
|
4,498,258
|
|
|
Total
|
|
$
|
12,228,558
|
|
|
|
|
|
|
|
|
|
|
||||
Joint Venture
|
|
Metropolitan Area
|
|
% Ownership
|
|
Balance as of June 30, 2019
|
|
Balance as of December 31, 2018
|
||||
|
|
|
|
|
|
|
|
|
||||
Ascenty (1)
|
|
Brazil / Chile
|
|
51%
|
(2)
|
$
|
795,258
|
|
|
$
|
—
|
|
Chun Choi
|
|
Hong Kong
|
|
50%
|
|
98,374
|
|
|
96,094
|
|
||
Digital MC
|
|
Osaka / Tokyo
|
|
50%
|
|
72,671
|
|
|
66,835
|
|
||
Other
|
|
|
|
|
|
13,047
|
|
|
12,179
|
|
||
Total
|
|
|
|
|
|
$
|
979,350
|
|
|
$
|
175,108
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Our maximum exposure to loss related to this unconsolidated variable interest entity (VIE) is limited to our equity investment in this VIE.
|
(2)
|
Includes an approximate 2% ownership interest by a non-controlling interest in our entity that holds the investment in the Ascenty joint venture, which has a carrying value of approximately $25.0 million.
|
|
Balance as of
|
||||||
(Amounts in thousands)
|
June 30, 2019
|
|
December 31, 2018
|
||||
Real Estate Intangibles:
|
|
|
|
||||
Acquired in-place lease value:
|
|
|
|
||||
Gross amount (1)
|
$
|
1,446,266
|
|
|
$
|
1,569,401
|
|
Accumulated amortization
|
(876,026
|
)
|
|
(795,033
|
)
|
||
Net
|
$
|
570,240
|
|
|
$
|
774,368
|
|
Tenant relationship value:
|
|
|
|
||||
Gross amount (1)
|
$
|
1,963,130
|
|
|
$
|
2,339,606
|
|
Accumulated amortization
|
(353,074
|
)
|
|
(291,818
|
)
|
||
Net
|
$
|
1,610,056
|
|
|
$
|
2,047,788
|
|
Acquired above-market leases:
|
|
|
|
||||
Gross amount
|
$
|
277,492
|
|
|
$
|
277,796
|
|
Accumulated amortization
|
(183,018
|
)
|
|
(158,037
|
)
|
||
Net
|
$
|
94,474
|
|
|
$
|
119,759
|
|
Acquired below-market leases:
|
|
|
|
||||
Gross amount
|
$
|
440,659
|
|
|
$
|
442,535
|
|
Accumulated amortization
|
(256,827
|
)
|
|
(242,422
|
)
|
||
Net
|
$
|
183,832
|
|
|
$
|
200,113
|
|
(1)
|
In connection with the deconsolidation of Ascenty, $120.0 million of acquired in-place lease value and $375.0 million of tenant relationship value were written off during the six months ended June 30, 2019.
|
(Amounts in thousands)
|
|
||
Remainder of 2019
|
$
|
(5,522
|
)
|
2020
|
(4,671
|
)
|
|
2021
|
114
|
|
|
2022
|
7,138
|
|
|
2023
|
11,285
|
|
|
Thereafter
|
81,014
|
|
|
Total
|
$
|
89,358
|
|
(Amounts in thousands)
|
|
||
Remainder of 2019
|
$
|
63,800
|
|
2020
|
111,088
|
|
|
2021
|
86,561
|
|
|
2022
|
64,702
|
|
|
2023
|
53,063
|
|
|
Thereafter
|
191,026
|
|
|
Total
|
$
|
570,240
|
|
(Amounts in thousands)
|
|
||
Remainder of 2019
|
$
|
61,452
|
|
2020
|
122,905
|
|
|
2021
|
122,905
|
|
|
2022
|
122,905
|
|
|
2023
|
122,905
|
|
|
Thereafter
|
1,056,984
|
|
|
Total
|
$
|
1,610,056
|
|
Indebtedness
|
Interest Rate at June 30, 2019
|
|
Maturity Date
|
|
Principal Outstanding at June 30, 2019
|
|
Principal Outstanding at December 31, 2018
|
|
||||
Global revolving credit facilities
|
Various
|
(1)(4)
|
Jan 24, 2023
|
(1)
|
$
|
1,431,067
|
|
(2)
|
$
|
1,663,156
|
|
(2)
|
Deferred financing costs, net
|
|
|
|
|
(13,392
|
)
|
|
(15,421
|
)
|
|
||
Global revolving credit facilities, net
|
|
|
|
|
1,417,675
|
|
|
1,647,735
|
|
|
||
Unsecured Term Loans
|
|
|
|
|
|
|
|
|
||||
2019 Term Loan
|
Base Rate + 1.000%
|
|
Jan 19, 2019
|
|
—
|
|
|
375,000
|
|
|
||
2023 Term Loan
|
Various
|
(3)(4)
|
Jan 15, 2023
|
|
300,000
|
|
(5)
|
300,000
|
|
(5)
|
||
2024 Term Loan
|
Various
|
(3)(4)
|
Jan 24, 2023
|
(3)
|
511,538
|
|
(5)
|
508,120
|
|
(5)
|
||
Deferred financing costs, net
|
|
|
|
|
(3,616
|
)
|
|
(4,216
|
)
|
|
||
Unsecured term loans, net
|
|
|
|
|
807,922
|
|
|
1,178,904
|
|
|
||
Floating rate notes due 2019
|
EURIBOR + 0.500%
|
|
May 22, 2019
|
|
—
|
|
(11)
|
143,338
|
|
(6)
|
||
5.875% notes due 2020
|
5.875%
|
|
Feb 1, 2020
|
|
—
|
|
(8)
|
500,000
|
|
|
||
3.400% notes due 2020
|
3.400%
|
|
Oct 1, 2020
|
|
54,132
|
|
(12)
|
500,000
|
|
|
||
5.250% notes due 2021
|
5.250%
|
|
Mar 15, 2021
|
|
116,589
|
|
(12)
|
400,000
|
|
|
||
3.950% notes due 2022
|
3.950%
|
|
Jul 1, 2022
|
|
500,000
|
|
|
500,000
|
|
|
||
3.625% notes due 2022
|
3.625%
|
|
Oct 1, 2022
|
|
300,000
|
|
|
300,000
|
|
|
||
2.750% notes due 2023
|
2.750%
|
|
Feb 1, 2023
|
|
350,000
|
|
|
350,000
|
|
|
||
4.750% notes due 2023
|
4.750%
|
|
Oct 13, 2023
|
|
380,880
|
|
(7)
|
382,620
|
|
(7)
|
||
2.625% notes due 2024
|
2.625%
|
|
Apr 15, 2024
|
|
682,380
|
|
(6)
|
688,020
|
|
(6)
|
||
2.750% notes due 2024
|
2.750%
|
|
Jul 19, 2024
|
|
317,400
|
|
(7)
|
318,850
|
|
(7)
|
||
4.250% notes due 2025
|
4.250%
|
|
Jan 17, 2025
|
|
507,840
|
|
(7)
|
510,160
|
|
(7)
|
||
4.750% notes due 2025
|
4.750%
|
|
Oct 1, 2025
|
|
450,000
|
|
|
450,000
|
|
|
||
2.500% notes due 2026
|
2.500%
|
|
Jan 16, 2026
|
|
1,222,598
|
|
(6)
|
—
|
|
|
||
3.700% notes due 2027
|
3.700%
|
|
Aug 15, 2027
|
|
1,000,000
|
|
|
1,000,000
|
|
|
||
4.450% notes due 2028
|
4.450%
|
|
Jul 15, 2028
|
|
650,000
|
|
|
650,000
|
|
|
||
3.600% notes due 2029
|
3.600%
|
|
Jul 1, 2029
|
|
900,000
|
|
|
—
|
|
|
||
3.300% notes due 2029
|
3.300%
|
|
Jul 19, 2029
|
|
444,360
|
|
(7)
|
446,390
|
|
(7)
|
||
3.750% notes due 2030
|
3.750%
|
|
Oct 17, 2030
|
|
$
|
698,280
|
|
(7)(9)
|
$
|
510,160
|
|
(7)
|
Unamortized discounts, net of premiums
|
|
|
|
|
(11,779
|
)
|
|
(19,859
|
)
|
|
||
Total senior notes, net of discount
|
|
|
|
|
8,562,680
|
|
|
7,629,679
|
|
|
||
Deferred financing costs, net
|
|
|
|
|
(51,024
|
)
|
|
(40,553
|
)
|
|
||
Total unsecured senior notes, net of discount and deferred financing costs
|
|
|
|
|
8,511,656
|
|
|
7,589,126
|
|
|
Indebtedness
|
Interest Rate at June 30, 2019
|
|
Maturity Date
|
|
Principal Outstanding June 30, 2019
|
|
Principal Outstanding December 31, 2018
|
|
||||
Secured Debt:
|
|
|
|
|
|
|
|
|
||||
731 East Trade Street
|
8.22%
|
|
Jul 1, 2020
|
|
$
|
1,462
|
|
|
$
|
1,776
|
|
|
Secured note due March 2023
|
LIBOR + 1.000%
|
(4)
|
Mar 1, 2023
|
|
104,000
|
|
|
104,000
|
|
|
||
Secured note due December 2023
|
Base Rate + 4.250%
|
|
Dec 20, 2023
|
|
—
|
|
(10)
|
600,000
|
|
|
||
Unamortized net premiums
|
|
|
|
|
101
|
|
|
148
|
|
|
||
Total mortgage loans, including premiums
|
|
|
|
|
105,563
|
|
|
705,924
|
|
|
||
Deferred financing costs, net
|
|
|
|
|
(238
|
)
|
|
(20,210
|
)
|
|
||
Total secured debt, including premiums and net of deferred financing costs
|
|
|
|
|
105,325
|
|
|
685,714
|
|
|
||
Total indebtedness
|
|
|
|
|
$
|
10,842,578
|
|
|
$
|
11,101,479
|
|
|
(1)
|
The interest rate for borrowings under the global revolving credit facility equals the applicable index plus a margin of 90 basis points, which is based on the current credit rating of our long-term debt. An annual facility fee of 20 basis points, which is based on the credit rating of our long-term debt, is due and payable quarterly on the total commitment amount of the facility. Two six months extensions are available, which we may exercise if certain conditions are met. The interest rate for borrowings under the Yen revolving credit facility equals the applicable index plus a margin of 50 basis points, which is based on the current credit rating of our long-term debt.
|
(2)
|
Balances as of June 30, 2019 and December 31, 2018 are as follows (balances, in thousands):
|
Denomination of Draw
|
Balance as of June 30, 2019
|
|
Weighted-average
interest rate
|
|
Balance as of December 31, 2018
|
|
Weighted-average
interest rate
|
|
||||||
Floating Rate Borrowing (a)(e)
|
|
|
|
|
|
|
|
|
||||||
U.S. dollar ($)
|
$
|
645,000
|
|
(b)
|
3.32
|
%
|
(b)
|
$
|
890,000
|
|
(b)
|
3.37
|
%
|
(b)
|
British pound sterling (£)
|
6,348
|
|
(c)
|
1.59
|
%
|
|
8,290
|
|
(d)
|
1.61
|
%
|
|
||
Euro (€)
|
391,231
|
|
(c)
|
0.90
|
%
|
|
451,800
|
|
(d)
|
0.90
|
%
|
|
||
Australian dollar (AUD)
|
31,309
|
|
(c)
|
2.24
|
%
|
|
27,632
|
|
(d)
|
2.82
|
%
|
|
||
Hong Kong dollar (HKD)
|
10,994
|
|
(c)
|
3.17
|
%
|
|
8,797
|
|
(d)
|
3.14
|
%
|
|
||
Japanese yen (JPY)
|
—
|
|
|
—
|
%
|
|
4,105
|
|
(d)
|
0.90
|
%
|
|
||
Singapore dollar (SGD)
|
70,796
|
|
(c)
|
2.76
|
%
|
|
77,112
|
|
(d)
|
2.79
|
%
|
|
||
Canadian dollar (CAD)
|
80,647
|
|
(c)
|
2.86
|
%
|
|
60,856
|
|
(d)
|
3.16
|
%
|
|
||
Total
|
$
|
1,236,325
|
|
|
2.45
|
%
|
|
$
|
1,528,592
|
|
|
2.57
|
%
|
|
|
|
|
|
|
|
|
|
|
||||||
Yen Revolving Credit Facility (a)
|
$
|
194,742
|
|
(f)
|
0.50
|
%
|
|
$
|
134,564
|
|
(f)
|
0.50
|
%
|
|
|
|
|
|
|
|
|
|
|
||||||
Total borrowings
|
$
|
1,431,067
|
|
|
2.19
|
%
|
(b)
|
$
|
1,663,156
|
|
|
2.41
|
%
|
(b)
|
(a)
|
The interest rates for floating rate borrowings under the global revolving credit facility currently equal the applicable index plus a margin of 90 basis points, which is based on the credit rating of our long-term debt. The interest rate for borrowings under the Yen revolving credit facility equals the applicable index plus a margin of 50 basis points, which is based on the current credit rating of our long-term debt.
|
(b)
|
As of June 30, 2019 and December 31, 2018, approximately $306.9 million of the U.S. dollar tranche was subject to interest rate swaps. As of June 30, 2019, the weighted-average interest rate reflecting interest rate swaps was 2.80% (U.S. dollar) and 1.96% (Total borrowings). As of December 31, 2018, the weighted-average interest rate reflecting interest rate swaps was 2.99% (U.S. dollar) and 2.20% (Total borrowings).
|
(c)
|
Based on exchange rates of $1.27 to £1.00, $1.14 to €1.00, $0.70 to 1.00 AUD, $0.13 to 1.00 HKD, $0.74 to 1.00 SGD and $0.76 to 1.00 CAD, respectively, as of June 30, 2019.
|
(d)
|
Based on exchange rates of $1.28 to £1.00, $1.15 to €1.00, $0.70 to 1.00 AUD, $0.13 to 1.00 HKD, $0.01 to 1.00 JPY, $0.73 to 1.00 SGD and $0.73 to 1.00 CAD, respectively, as of December 31, 2018.
|
(e)
|
As of June 30, 2019, approximately $44.4 million of letters of credit were issued.
|
(f)
|
Based on exchange rates of $0.01 to 1.00 JPY for June 30, 2019 and December 31, 2018.
|
(3)
|
Interest rates are based on our current senior unsecured debt ratings and are currently 100 basis points over the applicable index for floating rate advances for the 2023 Term Loan and the 2024 Term Loan. Two six months extensions are available for the 2024 Term Loan, which we may exercise if certain conditions are met.
|
(4)
|
We have entered into interest rate swap agreements as a cash flow hedge for interest generated by the U.S. dollar and Canadian dollar borrowings under the global revolving credit facility, the 2023 Term Loan and 2024 Term Loan and the secured note due March 2023. See Note 15 "Derivative Instruments" for further information.
|
(5)
|
Balances as of June 30, 2019 and December 31, 2018 are as follows (balances, in thousands):
|
Denomination of Draw
|
Balance as of June 30, 2019
|
|
Weighted-average
interest rate
|
|
Balance as of December 31, 2018
|
|
Weighted-average
interest rate
|
|
||||||
U.S. dollar ($)
|
$
|
300,000
|
|
|
3.39
|
%
|
(b)
|
$
|
300,000
|
|
|
3.46
|
%
|
(d)
|
Singapore dollar (SGD)
|
147,135
|
|
(a)
|
2.89
|
%
|
|
146,080
|
|
(c)
|
2.76
|
%
|
|
||
Australian dollar (AUD)
|
203,791
|
|
(a)
|
2.31
|
%
|
|
204,632
|
|
(c)
|
2.94
|
%
|
|
||
Hong Kong dollar (HKD)
|
85,388
|
|
(a)
|
3.41
|
%
|
|
85,188
|
|
(c)
|
3.32
|
%
|
|
||
Canadian dollar (CAD)
|
75,224
|
|
(a)
|
2.96
|
%
|
(b)
|
72,220
|
|
(c)
|
3.24
|
%
|
(d)
|
||
Total
|
$
|
811,538
|
|
|
2.99
|
%
|
(b)
|
$
|
808,120
|
|
|
3.17
|
%
|
(d)
|
(a)
|
Based on exchange rates of $0.74 to 1.00 SGD, $0.70 to 1.00 AUD, $0.13 to 1.00 HKD and $0.76 to 1.00 CAD, respectively, as of June 30, 2019.
|
(b)
|
As of June 30, 2019, the weighted-average interest rate reflecting interest rate swaps was 2.44% (U.S. dollar), 1.78% (Canadian dollar) and 2.53% (Total). See Note 15 "Derivative Instruments" for further discussion on interest rate swaps.
|
(c)
|
Based on exchange rates of $0.73 to 1.00 SGD, $0.70 to 1.00 AUD, $0.13 to 1.00 HKD and $0.73 to 1.00 CAD, respectively, as of December 31, 2018.
|
(d)
|
As of December 31, 2018, the weighted-average interest rate reflecting interest rate swaps was 2.44% (U.S. dollar), 1.78% (Canadian dollar) and 2.66% (Total).
|
(6)
|
Based on exchange rates of $1.14 to €1.00 as of June 30, 2019 and $1.15 to €1.00 as of December 31, 2018.
|
(7)
|
Based on exchange rates of $1.27 to £1.00 as of June 30, 2019 and $1.28 to £1.00 as of December 31, 2018.
|
(8)
|
The 5.875% 2020 Notes were paid in full in January 2019 (by tender offer) and February 2019 (by redemption of the remaining balance after the tender offer). The tender offer and redemption resulted in an early extinguishment charge of approximately $12.9 million during the three months ended March 31, 2019.
|
(9)
|
On March 5, 2019, Digital Stout Holding, LLC, a wholly owned subsidiary of the Operating Partnership, issued and sold an additional £150.0 million aggregate principal amount of 2030 Notes. The terms of the 2030 Notes are governed by an indenture, dated as of October 17, 2018, among Digital Stout Holding, LLC, Digital Realty Trust, Inc., the Operating Partnership, Deutsche Trustee Company Limited, as trustee, Deutsche Bank AG, London Branch, as paying agent and a transfer agent, and Deutsche Bank Luxembourg S.A., as registrar and a transfer agent (the “GBP Notes Indenture”), pursuant to which Digital Stout Holding, LLC previously issued £400.0 million in aggregate principal amount of its 2030 Notes. The 2030 Notes are treated as a single series with the notes previously issued under the GBP Notes Indenture.
|
(10)
|
The debt was deconsolidated as a result of the Ascenty joint venture formed with Brookfield.
|
(11)
|
Paid in full at maturity in May 2019.
|
(12)
|
The 3.400% 2020 Notes and 2021 Notes were paid in full in June 2019 (by tender offer) and July 2019 (by redemption of the remaining balances after the tender offer). The tender offer resulted in an early extinguishment charge of approximately $20.9 million during the three months ended June 30, 2019.
|
|
Global Revolving
Credit Facilities(1) |
|
Unsecured
Term Loans (1) |
|
Senior Notes
|
|
Secured Debt
|
|
Total
Debt
|
||||||||||
Remainder of 2019
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
329
|
|
|
$
|
329
|
|
2020
|
—
|
|
|
—
|
|
|
54,132
|
|
|
1,133
|
|
|
55,265
|
|
|||||
2021
|
—
|
|
|
—
|
|
|
116,589
|
|
|
—
|
|
|
116,589
|
|
|||||
2022
|
—
|
|
|
—
|
|
|
800,000
|
|
|
—
|
|
|
800,000
|
|
|||||
2023
|
1,236,325
|
|
|
811,538
|
|
|
730,880
|
|
|
104,000
|
|
|
2,882,743
|
|
|||||
Thereafter
|
194,742
|
|
|
—
|
|
|
6,872,858
|
|
|
—
|
|
|
7,067,600
|
|
|||||
Subtotal
|
$
|
1,431,067
|
|
|
$
|
811,538
|
|
|
$
|
8,574,459
|
|
|
$
|
105,462
|
|
|
$
|
10,922,526
|
|
Unamortized discount
|
—
|
|
|
—
|
|
|
(18,666
|
)
|
|
—
|
|
|
(18,666
|
)
|
|||||
Unamortized premium
|
—
|
|
|
—
|
|
|
6,887
|
|
|
101
|
|
|
6,988
|
|
|||||
Total
|
$
|
1,431,067
|
|
|
$
|
811,538
|
|
|
$
|
8,562,680
|
|
|
$
|
105,563
|
|
|
$
|
10,910,848
|
|
(1)
|
The global revolving credit facility and 2024 Term Loan are subject to two six-month extension options exercisable by us. The bank group is obligated to grant the extension options provided we give proper notice, we make certain representations and warranties and no default exists.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income available to common stockholders
|
$
|
31,738
|
|
|
$
|
65,134
|
|
|
$
|
127,607
|
|
|
$
|
151,432
|
|
Weighted average shares outstanding—basic
|
208,284,407
|
|
|
205,956,005
|
|
|
208,048,207
|
|
|
205,835,757
|
|
||||
Potentially dilutive common shares:
|
|
|
|
|
|
|
|
||||||||
Unvested incentive units
|
152,240
|
|
|
151,265
|
|
|
135,016
|
|
|
150,864
|
|
||||
Forward equity offering
|
825,098
|
|
|
—
|
|
|
537,980
|
|
|
—
|
|
||||
Market performance-based awards
|
173,827
|
|
|
455,809
|
|
|
173,091
|
|
|
473,549
|
|
||||
Weighted average shares outstanding—diluted
|
209,435,572
|
|
|
206,563,079
|
|
|
208,894,294
|
|
|
206,460,170
|
|
||||
Income per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.15
|
|
|
$
|
0.32
|
|
|
$
|
0.61
|
|
|
$
|
0.74
|
|
Diluted
|
$
|
0.15
|
|
|
$
|
0.32
|
|
|
$
|
0.61
|
|
|
$
|
0.73
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Weighted average of Operating Partnership common units not owned by Digital Realty Trust, Inc.
|
9,061,745
|
|
|
8,332,194
|
|
|
9,145,364
|
|
|
8,313,432
|
|
Potentially dilutive Series C Cumulative Redeemable Perpetual Preferred Stock
|
1,682,746
|
|
|
1,898,314
|
|
|
1,710,764
|
|
|
1,932,872
|
|
Potentially dilutive Series G Cumulative Redeemable Preferred Stock
|
2,086,512
|
|
|
2,353,805
|
|
|
2,121,252
|
|
|
2,396,655
|
|
Potentially dilutive Series H Cumulative Redeemable Preferred Stock
|
—
|
|
|
3,449,255
|
|
|
1,579,691
|
|
|
3,512,048
|
|
Potentially dilutive Series I Cumulative Redeemable Preferred Stock
|
2,088,954
|
|
|
2,356,559
|
|
|
2,123,735
|
|
|
2,399,459
|
|
Potentially dilutive Series J Cumulative Redeemable Preferred Stock
|
1,666,639
|
|
|
1,880,144
|
|
|
1,694,389
|
|
|
1,914,371
|
|
Potentially dilutive Series K Cumulative Redeemable Preferred Stock
|
1,752,562
|
|
|
—
|
|
|
1,051,537
|
|
|
—
|
|
Total
|
18,339,158
|
|
|
20,270,271
|
|
|
19,426,732
|
|
|
20,468,837
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income available to common unitholders
|
$
|
33,138
|
|
|
$
|
67,834
|
|
|
$
|
133,307
|
|
|
$
|
157,612
|
|
Weighted average units outstanding—basic
|
217,346,153
|
|
|
214,288,199
|
|
|
217,193,571
|
|
|
214,149,188
|
|
||||
Potentially dilutive common units:
|
|
|
|
|
|
|
|
||||||||
Unvested incentive units
|
152,240
|
|
|
151,265
|
|
|
135,016
|
|
|
150,864
|
|
||||
Forward equity offering
|
825,098
|
|
|
—
|
|
|
537,980
|
|
|
—
|
|
||||
Market performance-based awards
|
173,827
|
|
|
455,809
|
|
|
173,091
|
|
|
473,549
|
|
||||
Weighted average units outstanding—diluted
|
218,497,318
|
|
|
214,895,273
|
|
|
218,039,658
|
|
|
214,773,601
|
|
||||
Income per unit:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.15
|
|
|
$
|
0.32
|
|
|
$
|
0.61
|
|
|
$
|
0.74
|
|
Diluted
|
$
|
0.15
|
|
|
$
|
0.32
|
|
|
$
|
0.61
|
|
|
$
|
0.73
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Potentially dilutive Series C Cumulative Redeemable Perpetual Preferred Units
|
1,682,746
|
|
|
1,898,314
|
|
|
1,710,764
|
|
|
1,932,872
|
|
Potentially dilutive Series G Cumulative Redeemable Preferred Units
|
2,086,512
|
|
|
2,353,805
|
|
|
2,121,252
|
|
|
2,396,655
|
|
Potentially dilutive Series H Cumulative Redeemable Preferred Units
|
—
|
|
|
3,449,255
|
|
|
1,579,691
|
|
|
3,512,048
|
|
Potentially dilutive Series I Cumulative Redeemable Preferred Units
|
2,088,954
|
|
|
2,356,559
|
|
|
2,123,735
|
|
|
2,399,459
|
|
Potentially dilutive Series J Cumulative Redeemable Preferred Units
|
1,666,639
|
|
|
1,880,144
|
|
|
1,694,389
|
|
|
1,914,371
|
|
Potentially dilutive Series K Cumulative Redeemable Preferred Units
|
1,752,562
|
|
|
—
|
|
|
1,051,537
|
|
|
—
|
|
Total
|
9,277,413
|
|
|
11,938,077
|
|
|
10,281,368
|
|
|
12,155,405
|
|
•
|
the quotient obtained by dividing (i) the sum of (x) the $25.00 liquidation preference plus (y) the amount of any accrued and unpaid dividends to, but not including, the change of control conversion date (unless the change of control conversion date is after a record date for a Series K Preferred Stock dividend payment and prior to the corresponding Series K Preferred Stock dividend payment date, in which case no additional amount for such accrued and unpaid dividend will be included in this sum) by (ii) the common stock price specified in the Articles Supplementary governing the series K preferred stock; and
|
•
|
0.43611 (i.e., the share cap), subject to certain adjustments;
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||
|
Number of units
|
|
Percentage of total
|
|
Number of units
|
|
Percentage of total
|
||||
Digital Realty Trust, Inc.
|
208,324,538
|
|
|
95.7
|
%
|
|
206,425,656
|
|
|
95.1
|
%
|
Noncontrolling interests consist of:
|
|
|
|
|
|
|
|
||||
Common units held by third parties
|
4,857,794
|
|
|
2.2
|
%
|
|
6,297,272
|
|
|
2.9
|
%
|
Issuance of units in connection with Ascenty Acquisition
|
2,338,874
|
|
|
1.1
|
%
|
|
2,338,874
|
|
|
1.1
|
%
|
Incentive units held by employees and directors (see Note 14)
|
2,173,381
|
|
|
1.0
|
%
|
|
1,944,738
|
|
|
0.9
|
%
|
|
217,694,587
|
|
|
100.0
|
%
|
|
217,006,540
|
|
|
100.0
|
%
|
|
Common Units
|
|
Incentive Units
|
|
Total
|
|||
As of December 31, 2018
|
8,636,146
|
|
|
1,944,738
|
|
|
10,580,884
|
|
Redemption of common units for shares of Digital Realty Trust, Inc. common stock (1)
|
(1,439,478
|
)
|
|
—
|
|
|
(1,439,478
|
)
|
Conversion of incentive units held by employees and directors for shares of Digital Realty Trust, Inc. common stock (1)
|
—
|
|
|
(183,462
|
)
|
|
(183,462
|
)
|
Incentive units issued upon achievement of market performance condition
|
—
|
|
|
308,308
|
|
|
308,308
|
|
Grant of incentive units to employees and directors
|
—
|
|
|
118,411
|
|
|
118,411
|
|
Cancellation / forfeitures of incentive units held by employees and directors
|
—
|
|
|
(14,614
|
)
|
|
(14,614
|
)
|
As of June 30, 2019
|
7,196,668
|
|
|
2,173,381
|
|
|
9,370,049
|
|
(1)
|
Redemption / conversion of common units was recorded as a reduction to noncontrolling interests in the Operating Partnership and an increase to common stock and additional paid-in capital based on the book value per unit in the accompanying condensed consolidated balance sheet of Digital Realty Trust, Inc.
|
Date dividend declared
|
Dividend
payment date |
|
Series C Preferred Stock
|
|
Series G Preferred Stock
|
|
Series H Preferred Stock
|
|
Series I Preferred Stock
|
|
Series J Preferred Stock
|
|
Series K Preferred Stock
|
|
Common
Stock |
||||||||||||||
February 21, 2019
|
March 29, 2019
|
|
$
|
3,333
|
|
|
$
|
3,672
|
|
|
$
|
6,730
|
|
|
$
|
3,969
|
|
|
$
|
2,625
|
|
|
$
|
—
|
|
|
$
|
224,802
|
|
May 13, 2019
|
June 28, 2019
|
|
3,333
|
|
|
3,672
|
|
|
—
|
|
(1)
|
3,969
|
|
|
2,625
|
|
|
3,686
|
|
(2)
|
224,895
|
|
|||||||
|
|
|
$
|
6,666
|
|
|
$
|
7,344
|
|
|
$
|
6,730
|
|
|
$
|
7,938
|
|
|
$
|
5,250
|
|
|
$
|
3,686
|
|
|
$
|
449,697
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Annual rate of dividend per share
|
|
|
$
|
1.65625
|
|
|
$
|
1.46875
|
|
|
$
|
1.84375
|
|
|
$
|
1.58750
|
|
|
$
|
1.31250
|
|
|
$
|
1.46250
|
|
|
$
|
4.32000
|
|
(1)
|
Redeemed on April 1, 2019 for $25.00 per share, or a redemption price of $25.00 per share, plus accrued and unpaid dividends up to but not including the redemption date. In connection with the redemption, the previously incurred offering costs of approximately $11.8 million were recorded as a reduction to net income available to common stockholders.
|
(2)
|
Represents a pro rata dividend from and including the original issue date to and including June 30, 2019.
|
|
Foreign currency
translation adjustments |
|
Cash flow hedge
adjustments |
|
Foreign currency net investment hedge adjustments
|
|
Accumulated other
comprehensive income (loss), net |
||||||||
Balance as of December 31, 2018
|
$
|
(158,649
|
)
|
|
$
|
17,264
|
|
|
$
|
25,738
|
|
|
$
|
(115,647
|
)
|
Net current period change
|
18,386
|
|
|
(9,943
|
)
|
|
—
|
|
|
8,443
|
|
||||
Reclassification of foreign currency translation
adjustment due to deconsolidation of Ascenty |
21,687
|
|
|
—
|
|
|
—
|
|
|
21,687
|
|
||||
Reclassification to interest expense from interest
rate swaps |
—
|
|
|
(4,071
|
)
|
|
—
|
|
|
(4,071
|
)
|
||||
Balance as of June 30, 2019
|
$
|
(118,576
|
)
|
|
$
|
3,250
|
|
|
$
|
25,738
|
|
|
$
|
(89,588
|
)
|
Date distribution declared
|
Distribution
payment date |
|
Series C Preferred Units
|
|
Series G Preferred Units
|
|
Series H Preferred Units
|
|
Series I Preferred Units
|
|
Series J Preferred Units
|
|
Series K Preferred Units
|
|
Common
Units |
||||||||||||||
February 21, 2019
|
March 29, 2019
|
|
$
|
3,333
|
|
|
$
|
3,672
|
|
|
$
|
6,730
|
|
|
$
|
3,969
|
|
|
$
|
2,625
|
|
|
$
|
—
|
|
|
$
|
235,256
|
|
May 13, 2019
|
June 28, 2019
|
|
3,333
|
|
|
3,672
|
|
|
—
|
|
(1)
|
3,969
|
|
|
2,625
|
|
|
3,686
|
|
(2)
|
235,142
|
|
|||||||
|
|
|
$
|
6,666
|
|
|
$
|
7,344
|
|
|
$
|
6,730
|
|
|
$
|
7,938
|
|
|
$
|
5,250
|
|
|
$
|
3,686
|
|
|
$
|
470,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Annual rate of distribution per unit
|
|
|
$
|
1.65625
|
|
|
$
|
1.46875
|
|
|
$
|
1.84375
|
|
|
$
|
1.58750
|
|
|
$
|
1.31250
|
|
|
$
|
1.46250
|
|
|
$
|
4.32000
|
|
(1)
|
Redeemed on April 1, 2019 for $25.00 per unit, or a redemption price of $25.00 per unit, plus accrued and unpaid distributions up to but not including the redemption date. In connection with the redemption, the previously incurred offering costs of approximately $11.8 million were recorded as a reduction to net income available to common unitholders.
|
(2)
|
Represents a pro rata distribution from and including the original issue date to and including June 30, 2019.
|
|
Foreign currency
translation adjustments |
|
Cash flow hedge
adjustments |
|
Foreign currency net investment hedge adjustments
|
|
Accumulated other
comprehensive loss |
||||||||
Balance as of December 31, 2018
|
$
|
(163,531
|
)
|
|
$
|
16,986
|
|
|
$
|
26,152
|
|
|
$
|
(120,393
|
)
|
Net current period change
|
20,156
|
|
|
(10,379
|
)
|
|
—
|
|
|
9,777
|
|
||||
Reclassification of foreign currency translation
adjustment due to deconsolidation of Ascenty |
21,687
|
|
|
—
|
|
|
—
|
|
|
21,687
|
|
||||
Reclassification to interest expense from interest rate swaps
|
—
|
|
|
(4,250
|
)
|
|
—
|
|
|
(4,250
|
)
|
||||
Balance as of June 30, 2019
|
$
|
(121,688
|
)
|
|
$
|
2,357
|
|
|
$
|
26,152
|
|
|
$
|
(93,179
|
)
|
|
|
Deferred Compensation
|
|
Unearned Compensation
|
|
Expected period to recognize unearned compensation (in years)
|
||||||||||||||||||||
|
|
Expensed
|
|
Capitalized
|
|
As of June 30, 2019
|
|
As of December 31, 2018
|
|
|||||||||||||||||
|
|
Three Months Ended June 30,
|
|
|
|
|||||||||||||||||||||
Type of incentive award
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|||||||||||||||
Long-term incentive units
|
|
$
|
2.4
|
|
|
$
|
2.9
|
|
|
$
|
—
|
|
|
$
|
(0.1
|
)
|
|
$
|
19.5
|
|
|
$
|
11.5
|
|
|
2.7
|
Market performance-based awards
|
|
3.6
|
|
|
3.5
|
|
|
0.2
|
|
|
0.4
|
|
|
37.4
|
|
|
24.8
|
|
|
2.9
|
||||||
Restricted stock
|
|
3.0
|
|
|
1.7
|
|
|
0.8
|
|
|
1.1
|
|
|
37.0
|
|
|
23.6
|
|
|
3.0
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Six Months Ended June 30,
|
|
|
|
|
|
|
||||||||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
||||||||||||
Long-term incentive units
|
|
$
|
3.8
|
|
|
$
|
3.8
|
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
|
|
|
|
|
|
||||
Market performance-based awards
|
|
6.6
|
|
|
6.6
|
|
|
0.4
|
|
|
0.7
|
|
|
|
|
|
|
|
||||||||
Restricted stock
|
|
5.6
|
|
|
3.2
|
|
|
1.3
|
|
|
2.1
|
|
|
|
|
|
|
|
Unvested Long-term Incentive Units
|
Units
|
|
Weighted-Average
Grant Date Fair
Value
|
|||
Unvested, beginning of period
|
158,486
|
|
|
$
|
100.94
|
|
Granted
|
118,411
|
|
|
116.14
|
|
|
Vested
|
(56,789
|
)
|
|
81.17
|
|
|
Unvested, end of period
|
220,108
|
|
|
$
|
109.98
|
|
Level
|
RMS Relative
Market Performance |
Market
Performance
Vesting
Percentage
|
Below Threshold Level
|
≤ -300 basis points
|
0%
|
Threshold Level
|
-300 basis points
|
25%
|
Target Level
|
100 basis points
|
50%
|
High Level
|
> 500 basis points
|
100%
|
Award Date
|
|
Expected Stock Price Volatility
|
|
Risk-Free Interest rate
|
January 1, 2018
|
|
22%
|
|
1.98%
|
March 1, 2018
|
|
22%
|
|
2.34%
|
March 9, 2018
|
|
22%
|
|
2.42%
|
January 1, 2019
|
|
23%
|
|
2.44%
|
February 21, 2019
|
|
23%
|
|
2.48%
|
Unvested Restricted Stock
|
Shares
|
|
Weighted-Average
Grant Date Fair
Value
|
|||
Unvested, beginning of period
|
295,501
|
|
|
$
|
97.49
|
|
Granted
|
216,299
|
|
|
114.77
|
|
|
Vested
|
(99,754
|
)
|
|
92.31
|
|
|
Cancelled or expired
|
(18,455
|
)
|
|
108.43
|
|
|
Unvested, end of period
|
393,591
|
|
|
$
|
107.86
|
|
(1)
|
Represents debt which bears interest based on one-month U.S. LIBOR.
|
(2)
|
Represents debt which bears interest based on one-month CDOR. Translation to U.S. dollars is based on exchange rates of $0.76 to 1.00 CAD as of June 30, 2019 and $0.73 to 1.00 CAD as of December 31, 2018.
|
(3)
|
Balance recorded in other assets in the consolidated balance sheets if positive and recorded in accounts payable and other accrued liabilities in the consolidated balance sheets if negative.
|
|
Categorization
under the fair value
hierarchy
|
|
As of June 30, 2019
|
|
As of December 31, 2018
|
||||||||||||
|
Estimated Fair Value
|
|
Carrying Value
|
|
Estimated Fair Value
|
|
Carrying Value
|
||||||||||
Global revolving credit facilities (1)(5)
|
Level 2
|
|
$
|
1,431,067
|
|
|
$
|
1,431,067
|
|
|
$
|
1,663,156
|
|
|
$
|
1,663,156
|
|
Unsecured term loans (2)(6)
|
Level 2
|
|
811,538
|
|
|
811,538
|
|
|
1,183,121
|
|
|
1,183,121
|
|
||||
Unsecured senior notes (3)(4)(7)
|
Level 2
|
|
9,106,702
|
|
|
8,562,680
|
|
|
7,684,368
|
|
|
7,629,679
|
|
||||
Secured debt (3)(8)
|
Level 2
|
|
105,670
|
|
|
105,563
|
|
|
706,086
|
|
|
705,924
|
|
||||
|
|
|
$
|
11,454,977
|
|
|
$
|
10,910,848
|
|
|
$
|
11,236,731
|
|
|
$
|
11,181,880
|
|
(1)
|
The carrying value of our global revolving credit facilities approximate estimated fair value, due to the variability of interest rates and the stability of our credit ratings.
|
(2)
|
The carrying value of our unsecured term loans approximates estimated fair value, due to the variability of interest rates and the stability of our credit ratings.
|
(3)
|
Valuations for our unsecured senior notes and secured debt are determined based on the expected future payments discounted at risk-adjusted rates. The 3.400% 2020 Notes, 2021 Notes, 3.950% 2022 Notes, 3.625% 2022 Notes, 4.750% 2023 Notes, 2.750% 2023 Notes, 2.625% 2024 Notes, 2.750% 2024 Notes, 4.750% 2025 Notes, 4.250% 2025 Notes, 2026 Notes, 2027 Notes, 2028 Notes, 3.600% 2029 Notes, 3.300% 2029 Notes and 2030 Notes are valued based on quoted market prices.
|
(4)
|
The carrying value of the 3.400% 2020 Notes, 2021 Notes, 3.625% 2022 Notes, 3.950% 2022 Notes, 4.750% 2023 Notes, 2.750% 2023 Notes, 2.625% 2024 Notes, 2.750% 2024 Notes, 4.250% 2025 Notes, 2026 Notes, 2027 Notes, 2028 Notes, 3.600% 2029 Notes, 3.300% 2029 Notes and 2030 Notes are net of discount of $11.8 million and $19.9 million in the aggregate as of June 30, 2019 and December 31, 2018, respectively.
|
(5)
|
The estimated fair value and carrying value are exclusive of deferred financing costs of $13.4 million and $15.4 million as of June 30, 2019 and December 31, 2018, respectively.
|
(6)
|
The estimated fair value and carrying value are exclusive of deferred financing costs of $3.6 million and $4.2 million as of June 30, 2019 and December 31, 2018, respectively.
|
(7)
|
The estimated fair value and carrying value are exclusive of deferred financing costs of $51.0 million and $40.6 million as of June 30, 2019 and December 31, 2018, respectively.
|
(8)
|
The estimated fair value and carrying value are exclusive of deferred financing costs of $0.2 million and $20.2 million as of June 30, 2019 and December 31, 2018, respectively.
|
Metropolitan Area
|
|
Data Center Buildings
|
|
Net Rentable Square Feet (1)
|
|
Space Under Active Development (2)
|
|
Space Held for Development (3)
|
||||
|
|
|
|
|
|
|
|
|
||||
North America
|
|
|
|
|
|
|
|
|
||||
Northern Virginia
|
|
31
|
|
|
6,109,654
|
|
|
1,159,297
|
|
|
83,220
|
|
Dallas
|
|
21
|
|
|
3,416,078
|
|
|
151,029
|
|
|
81,206
|
|
Chicago
|
|
10
|
|
|
3,035,043
|
|
|
388,057
|
|
|
152,362
|
|
Silicon Valley
|
|
20
|
|
|
2,251,021
|
|
|
65,594
|
|
|
—
|
|
New York
|
|
12
|
|
|
2,063,225
|
|
|
18,253
|
|
|
138,536
|
|
Phoenix
|
|
4
|
|
|
990,385
|
|
|
—
|
|
|
108,926
|
|
San Francisco
|
|
4
|
|
|
848,293
|
|
|
—
|
|
|
—
|
|
Los Angeles
|
|
4
|
|
|
802,878
|
|
|
15,601
|
|
|
—
|
|
Atlanta
|
|
5
|
|
|
775,606
|
|
|
—
|
|
|
313,581
|
|
Boston
|
|
5
|
|
|
534,249
|
|
|
—
|
|
|
50,649
|
|
Houston
|
|
6
|
|
|
392,816
|
|
|
—
|
|
|
13,969
|
|
Denver
|
|
2
|
|
|
371,500
|
|
|
—
|
|
|
—
|
|
Minneapolis/St. Paul
|
|
1
|
|
|
328,765
|
|
|
—
|
|
|
—
|
|
Toronto, Canada
|
|
3
|
|
|
278,329
|
|
|
38,409
|
|
|
583,029
|
|
Miami
|
|
2
|
|
|
226,314
|
|
|
—
|
|
|
—
|
|
Charlotte
|
|
3
|
|
|
95,499
|
|
|
—
|
|
|
—
|
|
Austin
|
|
1
|
|
|
85,688
|
|
|
—
|
|
|
—
|
|
Portland
|
|
1
|
|
|
48,574
|
|
|
—
|
|
|
—
|
|
North America Total / Weighted Average
|
|
135
|
|
|
22,653,916
|
|
|
1,836,240
|
|
|
1,525,478
|
|
|
|
|
|
|
|
|
|
|
||||
Europe
|
|
|
|
|
|
|
|
|
||||
London, United Kingdom
|
|
16
|
|
|
1,456,765
|
|
|
137,352
|
|
|
98,598
|
|
Amsterdam, Netherlands
|
|
10
|
|
|
563,197
|
|
|
112,569
|
|
|
68,185
|
|
Dublin, Ireland
|
|
5
|
|
|
330,180
|
|
|
26,646
|
|
|
—
|
|
Paris, France
|
|
3
|
|
|
185,994
|
|
|
—
|
|
|
—
|
|
Frankfurt, Germany
|
|
4
|
|
|
167,799
|
|
|
240,316
|
|
|
—
|
|
Geneva, Switzerland
|
|
1
|
|
|
59,190
|
|
|
—
|
|
|
—
|
|
Manchester, England
|
|
1
|
|
|
38,016
|
|
|
—
|
|
|
—
|
|
Europe Total / Weighted Average
|
|
40
|
|
|
2,801,141
|
|
|
516,883
|
|
|
166,783
|
|
|
|
|
|
|
|
|
|
|
||||
Asia Pacific
|
|
|
|
|
|
|
|
|
||||
Singapore
|
|
3
|
|
|
523,415
|
|
|
362,049
|
|
|
—
|
|
Sydney, Australia
|
|
3
|
|
|
223,736
|
|
|
90,621
|
|
|
—
|
|
Melbourne, Australia
|
|
2
|
|
|
146,570
|
|
|
—
|
|
|
—
|
|
Osaka, Japan
|
|
1
|
|
|
112,500
|
|
|
127,499
|
|
|
—
|
|
Asia Pacific Total / Weighted Average
|
|
9
|
|
|
1,006,221
|
|
|
580,169
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||
Non-Data Center Properties
|
|
—
|
|
|
278,068
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Metropolitan Area
|
|
Data Center Buildings
|
|
Net Rentable Square Feet (1)
|
|
Space Under Active Development (2)
|
|
Space Held for Development (3)
|
||||
Managed Unconsolidated Joint Ventures
|
|
|
|
|
|
|
|
|
||||
Northern Virginia
|
|
4
|
|
|
546,572
|
|
|
—
|
|
|
—
|
|
Silicon Valley
|
|
4
|
|
|
326,305
|
|
|
—
|
|
|
—
|
|
Dallas
|
|
3
|
|
|
319,876
|
|
|
—
|
|
|
—
|
|
Hong Kong
|
|
1
|
|
|
178,505
|
|
|
—
|
|
|
7,795
|
|
New York
|
|
1
|
|
|
108,336
|
|
|
—
|
|
|
—
|
|
|
|
13
|
|
|
1,479,594
|
|
|
—
|
|
|
7,795
|
|
|
|
|
|
|
|
|
|
|
||||
Non-Managed Unconsolidated Joint Ventures
|
|
|
|
|
|
|
|
|
||||
São Paulo
|
|
14
|
|
|
562,120
|
|
|
267,114
|
|
|
258,102
|
|
Seattle
|
|
2
|
|
|
451,369
|
|
|
—
|
|
|
—
|
|
Tokyo
|
|
2
|
|
|
430,277
|
|
|
—
|
|
|
—
|
|
Fortaleza
|
|
1
|
|
|
94,205
|
|
|
—
|
|
|
—
|
|
Osaka
|
|
1
|
|
|
92,087
|
|
|
—
|
|
|
—
|
|
Rio De Janeiro
|
|
2
|
|
|
22,500
|
|
|
49,941
|
|
|
26,781
|
|
Santiago
|
|
1
|
|
|
—
|
|
|
46,474
|
|
|
20,865
|
|
|
|
23
|
|
|
1,652,558
|
|
|
363,529
|
|
|
305,748
|
|
|
|
|
|
|
|
|
|
|
||||
Total
|
|
220
|
|
|
29,871,498
|
|
|
3,296,821
|
|
|
2,005,804
|
|
(1)
|
Current net rentable square feet as of June 30, 2019, which represents the current square feet under lease as specified in the applicable lease agreements plus management’s estimate of space available for lease based on engineering drawings. Includes customers’ proportional share of common areas but excludes space under active development and space held for development.
|
(2)
|
Space under active development includes current base building and data center projects in progress, and excludes space held for development. For additional information on the current and future investment for space under active development, see “—Liquidity and Capital Resources of the Operating Partnership—Construction”.
|
(3)
|
Space held for development includes space held for future data center development, and excludes space under active development. For additional information on the current investment for space held for development, see “—Liquidity and Capital Resources of the Operating Partnership—Construction”.
|
|
|
Rentable Square Feet (1)
|
|
Expiring
Rates (2) |
|
New
Rates (2) |
|
Rental Rate
Changes
|
|
TI’s/Lease
Commissions
Per Square
Foot
|
|
Weighted
Average Lease
Terms
(years)
|
|||||||||
Leasing Activity (3)(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Renewals Signed
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Turn-Key Flex ®
|
|
874,532
|
|
|
$
|
137.11
|
|
|
$
|
131.32
|
|
|
(4.2
|
)%
|
|
$
|
11.96
|
|
|
5.8
|
|
Powered Base Building ®
|
|
1,603,852
|
|
|
$
|
31.75
|
|
|
$
|
35.26
|
|
|
11.1
|
%
|
|
$
|
13.18
|
|
|
14.3
|
|
Colocation
|
|
224,844
|
|
|
$
|
284.14
|
|
|
$
|
291.02
|
|
|
2.4
|
%
|
|
$
|
0.01
|
|
|
1.3
|
|
Non-technical
|
|
191,374
|
|
|
$
|
15.59
|
|
|
$
|
19.16
|
|
|
22.9
|
%
|
|
$
|
5.26
|
|
|
5.7
|
|
New Leases Signed (5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Turn-Key Flex ®
|
|
453,264
|
|
|
—
|
|
|
$
|
153.36
|
|
|
—
|
|
|
$
|
34.60
|
|
|
6.8
|
|
|
Powered Base Building ®
|
|
168,613
|
|
|
—
|
|
|
$
|
52.72
|
|
|
—
|
|
|
$
|
23.55
|
|
|
10.8
|
|
|
Colocation
|
|
50,685
|
|
|
—
|
|
|
$
|
299.07
|
|
|
—
|
|
|
$
|
28.67
|
|
|
2.3
|
|
|
Non-technical
|
|
89,725
|
|
|
—
|
|
|
$
|
8.89
|
|
|
—
|
|
|
$
|
3.91
|
|
|
3.3
|
|
|
Leasing Activity Summary
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Turn-Key Flex ®
|
|
1,327,796
|
|
|
|
|
$
|
138.84
|
|
|
|
|
|
|
|
||||||
Powered Base Building ®
|
|
1,772,465
|
|
|
|
|
$
|
36.92
|
|
|
|
|
|
|
|
||||||
Colocation
|
|
275,529
|
|
|
|
|
$
|
292.50
|
|
|
|
|
|
|
|
||||||
Non-technical
|
|
281,099
|
|
|
|
|
$
|
15.88
|
|
|
|
|
|
|
|
(1)
|
For some of our properties, we calculate square footage based on factors in addition to contractually leased square feet, including power, required support space and common area.
|
(2)
|
Rental rates represent annual estimated cash rent per rentable square foot adjusted for straight-line rents in accordance with GAAP. GAAP rental rates are inclusive of tenant concessions, if any.
|
(3)
|
Excludes short-term leases.
|
(4)
|
Commencement dates for the leases signed range from 2019 to 2021.
|
(5)
|
Includes leases signed for new and re-leased space.
|
Metropolitan Area
|
Percentage of June 30, 2019 total annualized rent (1)
|
|
Northern Virginia
|
23.2
|
%
|
Chicago
|
11.6
|
%
|
Silicon Valley
|
8.5
|
%
|
London, United Kingdom
|
8.4
|
%
|
New York
|
8.2
|
%
|
Dallas
|
7.5
|
%
|
São Paulo
|
3.9
|
%
|
Singapore
|
3.5
|
%
|
Phoenix
|
3.5
|
%
|
San Francisco
|
2.6
|
%
|
Seattle
|
2.2
|
%
|
Atlanta
|
2.1
|
%
|
Amsterdam, Netherlands
|
2.0
|
%
|
Other
|
12.8
|
%
|
Total
|
100.0
|
%
|
(1)
|
Annualized rent is monthly contractual rent (defined as cash base rent before abatements) under existing leases as of June 30, 2019 multiplied by 12. The aggregate amount of abatements for the six months ended June 30, 2019 was approximately $36.5 million.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Income Statement Data:
|
|
|
|
|
|
|
|
||||||||
Total operating revenues
|
$
|
800,797
|
|
|
$
|
754,919
|
|
|
$
|
1,615,312
|
|
|
$
|
1,499,287
|
|
Total operating expenses
|
(651,825
|
)
|
|
(610,857
|
)
|
|
(1,324,797
|
)
|
|
(1,211,412
|
)
|
||||
Operating income
|
148,972
|
|
|
144,062
|
|
|
290,515
|
|
|
287,875
|
|
||||
Other expenses, net
|
(87,648
|
)
|
|
(55,903
|
)
|
|
(108,194
|
)
|
|
(89,621
|
)
|
||||
Net income
|
$
|
61,324
|
|
|
$
|
88,159
|
|
|
$
|
182,321
|
|
|
$
|
198,254
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||||
Rental and other services
|
$
|
799,386
|
|
|
$
|
596,326
|
|
|
$
|
203,060
|
|
|
$
|
1,611,416
|
|
|
$
|
1,188,624
|
|
|
$
|
422,792
|
|
Tenant reimbursements
|
—
|
|
|
155,723
|
|
|
(155,723
|
)
|
|
—
|
|
|
305,802
|
|
|
(305,802
|
)
|
||||||
Fee income and other
|
$
|
1,411
|
|
|
$
|
2,870
|
|
|
(1,459
|
)
|
|
3,896
|
|
|
4,861
|
|
|
(965
|
)
|
||||
Total operating revenues
|
$
|
800,797
|
|
|
$
|
754,919
|
|
|
$
|
45,878
|
|
|
$
|
1,615,312
|
|
|
$
|
1,499,287
|
|
|
$
|
116,025
|
|
|
Stabilized
|
|
Pre-Stabilized and Other
|
|||||||||||||||||||||||
|
Six Months Ended June 30,
|
|
Six Months Ended June 30,
|
|||||||||||||||||||||||
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|
2019
|
|
2018
|
|
Change
|
|||||||||||||
Rental and other services
|
$
|
1,302,514
|
|
|
$
|
1,037,017
|
|
|
$
|
265,497
|
|
|
25.6
|
%
|
|
$
|
308,902
|
|
|
$
|
151,607
|
|
|
$
|
157,295
|
|
Tenant reimbursements
|
—
|
|
|
271,239
|
|
|
(271,239
|
)
|
|
(100.0
|
)%
|
|
—
|
|
|
34,563
|
|
|
(34,563
|
)
|
||||||
Total
|
$
|
1,302,514
|
|
|
$
|
1,308,256
|
|
|
$
|
(5,742
|
)
|
|
(0.4
|
)%
|
|
$
|
308,902
|
|
|
$
|
186,170
|
|
|
$
|
122,732
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||||
Rental property operating and maintenance
|
$
|
252,032
|
|
|
$
|
230,322
|
|
|
$
|
21,710
|
|
|
$
|
506,986
|
|
|
$
|
455,962
|
|
|
$
|
51,024
|
|
Property taxes and insurance
|
44,923
|
|
|
29,890
|
|
|
15,033
|
|
|
85,229
|
|
|
68,884
|
|
|
16,345
|
|
||||||
Depreciation and amortization
|
290,562
|
|
|
298,788
|
|
|
(8,226
|
)
|
|
602,048
|
|
|
593,577
|
|
|
8,471
|
|
||||||
General and administrative
|
52,983
|
|
|
46,099
|
|
|
6,884
|
|
|
106,442
|
|
|
82,622
|
|
|
23,820
|
|
||||||
Transaction and integration expenses
|
4,210
|
|
|
5,606
|
|
|
(1,396
|
)
|
|
6,704
|
|
|
9,784
|
|
|
(3,080
|
)
|
||||||
Impairment of investments in real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
5,351
|
|
|
—
|
|
|
5,351
|
|
||||||
Other
|
7,115
|
|
|
152
|
|
|
6,963
|
|
|
12,037
|
|
|
583
|
|
|
11,454
|
|
||||||
Total operating expenses
|
$
|
651,825
|
|
|
$
|
610,857
|
|
|
$
|
40,968
|
|
|
$
|
1,324,797
|
|
|
$
|
1,211,412
|
|
|
$
|
113,385
|
|
Interest expense
|
$
|
86,051
|
|
|
$
|
78,810
|
|
|
$
|
7,241
|
|
|
$
|
187,603
|
|
|
$
|
155,795
|
|
|
$
|
31,808
|
|
|
Stabilized
|
|
Pre-Stabilized and Other
|
|||||||||||||||||||||||
|
Three Months Ended June 30,
|
|
Three Months Ended June 30,
|
|||||||||||||||||||||||
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|
2019
|
|
2018
|
|
Change
|
|||||||||||||
Rental property operating and maintenance
|
$
|
202,526
|
|
|
$
|
196,873
|
|
|
$
|
5,653
|
|
|
2.9
|
%
|
|
$
|
49,506
|
|
|
$
|
33,450
|
|
|
$
|
16,056
|
|
Property taxes and insurance
|
32,017
|
|
|
22,475
|
|
|
9,542
|
|
|
42.5
|
%
|
|
12,906
|
|
|
7,415
|
|
|
5,491
|
|
||||||
|
$
|
234,543
|
|
|
$
|
219,348
|
|
|
$
|
15,195
|
|
|
6.9
|
%
|
|
$
|
62,412
|
|
|
$
|
40,865
|
|
|
$
|
21,547
|
|
|
Stabilized
|
|
Pre-Stabilized and Other
|
|||||||||||||||||||||||
|
Six Months Ended June 30,
|
|
Six Months Ended June 30,
|
|||||||||||||||||||||||
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|
2019
|
|
2018
|
|
Change
|
|||||||||||||
Rental property operating and maintenance
|
$
|
400,879
|
|
|
$
|
388,069
|
|
|
$
|
12,810
|
|
|
3.3
|
%
|
|
$
|
106,107
|
|
|
$
|
67,893
|
|
|
$
|
38,214
|
|
Property taxes and insurance
|
62,223
|
|
|
53,458
|
|
|
8,765
|
|
|
16.4
|
%
|
|
23,006
|
|
|
15,426
|
|
|
7,580
|
|
||||||
|
$
|
463,102
|
|
|
$
|
441,527
|
|
|
$
|
21,575
|
|
|
4.9
|
%
|
|
$
|
129,113
|
|
|
$
|
83,319
|
|
|
$
|
45,794
|
|
Date dividend declared
|
Dividend
payment date |
|
Series C Preferred Stock
|
|
Series G Preferred Stock
|
|
Series H Preferred Stock
|
|
Series I Preferred Stock
|
|
Series J Preferred Stock
|
|
Series K Preferred Stock
|
|
Common
Stock |
||||||||||||||
February 21, 2019
|
March 29, 2019
|
|
$
|
3,333
|
|
|
$
|
3,672
|
|
|
$
|
6,730
|
|
|
$
|
3,969
|
|
|
$
|
2,625
|
|
|
$
|
—
|
|
|
$
|
224,802
|
|
May 13, 2019
|
June 28, 2019
|
|
3,333
|
|
|
3,672
|
|
|
—
|
|
(1)
|
3,969
|
|
|
2,625
|
|
|
3,686
|
|
(2)
|
224,895
|
|
|||||||
|
|
|
$
|
6,666
|
|
|
$
|
7,344
|
|
|
$
|
6,730
|
|
|
$
|
7,938
|
|
|
$
|
5,250
|
|
|
$
|
3,686
|
|
|
$
|
449,697
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Annual rate of dividend per share
|
|
|
$
|
1.65625
|
|
|
$
|
1.46875
|
|
|
$
|
1.84375
|
|
|
$
|
1.58750
|
|
|
$
|
1.31250
|
|
|
$
|
1.46250
|
|
|
$
|
4.32000
|
|
(1)
|
Redeemed on April 1, 2019 for $25.00 per share, or a redemption price of $25.00 per share, plus accrued and unpaid dividends up to but not including the redemption date. In connection with the redemption, the previously incurred offering costs of approximately $11.8 million were recorded as a reduction to net income available to common stockholders.
|
(2)
|
Represents a pro rata dividend from and including the original issue date to and including June 30, 2019.
|
Development Lifecycle
|
As of June 30, 2019
|
|
As of December 31, 2018
|
||||||||||||||||||||||||||
(dollars in thousands)
|
Net Rentable Square Feet (1)
|
|
Current
Investment (2) |
|
Future
Investment (3) |
|
Total Cost
|
|
Net Rentable Square Feet (1)
|
|
Current
Investment (4) |
|
Future
Investment (3) |
|
Total Cost
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Land held for future development (5)
|
N/A
|
|
$
|
152,368
|
|
|
$
|
—
|
|
|
$
|
152,368
|
|
|
N/A
|
|
$
|
162,941
|
|
|
$
|
—
|
|
|
$
|
162,941
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction in Progress and
Space Held for Development |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Land - Current Development (5)
|
N/A
|
|
$
|
503,350
|
|
|
$
|
—
|
|
|
$
|
503,350
|
|
|
N/A
|
|
$
|
385,892
|
|
|
$
|
—
|
|
|
$
|
385,892
|
|
||
Space Held for Development (6)
|
1,692,261
|
|
|
326,117
|
|
|
—
|
|
|
326,117
|
|
|
1,805,844
|
|
|
396,440
|
|
|
—
|
|
|
396,440
|
|
||||||
Base Building Construction
|
1,972,366
|
|
|
346,397
|
|
|
186,635
|
|
|
533,032
|
|
|
1,724,740
|
|
|
214,634
|
|
|
223,360
|
|
|
437,994
|
|
||||||
Data Center Construction
|
960,926
|
|
|
449,416
|
|
|
484,108
|
|
|
933,524
|
|
|
1,103,465
|
|
|
586,995
|
|
|
521,387
|
|
|
1,108,382
|
|
||||||
Equipment Pool & Other Inventory
|
|
|
22,464
|
|
|
—
|
|
|
22,464
|
|
|
|
|
14,558
|
|
|
—
|
|
|
14,558
|
|
||||||||
Campus, Tenant Improvements & Other
|
|
|
37,313
|
|
|
22,648
|
|
|
59,961
|
|
|
|
|
23,409
|
|
|
16,228
|
|
|
39,637
|
|
||||||||
Total Construction in Progress and Space Held for Development
|
4,625,553
|
|
|
$
|
1,685,057
|
|
|
$
|
693,391
|
|
|
$
|
2,378,448
|
|
|
4,634,049
|
|
|
$
|
1,621,928
|
|
|
$
|
760,975
|
|
|
$
|
2,382,903
|
|
(1)
|
Square footage is based on current estimates and project plans, and may change upon completion of the project or due to remeasurement.
|
(2)
|
Represents balances incurred through June 30, 2019.
|
(3)
|
Represents estimated cost to complete specific scope of work pursuant to contract, budget or approved capital plan.
|
(4)
|
Represents balances incurred through December 31, 2018.
|
(5)
|
Represents approximately 980 acres as of June 30, 2019 and approximately 959 acres as of December 31, 2018.
|
(6)
|
Excludes space held for development through unconsolidated joint ventures.
|
|
Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
Development projects
|
$
|
657,618
|
|
|
$
|
492,007
|
|
Enhancement and improvements
|
2,264
|
|
|
9,048
|
|
||
Recurring capital expenditures
|
77,574
|
|
|
61,775
|
|
||
Total capital expenditures (excluding indirect costs)
|
$
|
737,456
|
|
|
$
|
562,830
|
|
Date distribution declared
|
Distribution
payment date |
|
Series C Preferred Units
|
|
Series G Preferred Units
|
|
Series H Preferred Units
|
|
Series I Preferred Units
|
|
Series J Preferred Units
|
|
Series K Preferred Units
|
|
Common
Units |
||||||||||||||
February 21, 2019
|
March 29, 2019
|
|
$
|
3,333
|
|
|
$
|
3,672
|
|
|
$
|
6,730
|
|
|
$
|
3,969
|
|
|
$
|
2,625
|
|
|
$
|
—
|
|
|
$
|
235,256
|
|
May 13, 2019
|
June 28, 2019
|
|
3,333
|
|
|
3,672
|
|
|
—
|
|
(1)
|
3,969
|
|
|
2,625
|
|
|
3,686
|
|
(2)
|
235,142
|
|
|||||||
|
|
|
$
|
6,666
|
|
|
$
|
7,344
|
|
|
$
|
6,730
|
|
|
$
|
7,938
|
|
|
$
|
5,250
|
|
|
$
|
3,686
|
|
|
$
|
470,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Annual rate of distribution per unit
|
|
|
$
|
1.65625
|
|
|
$
|
1.46875
|
|
|
$
|
1.84375
|
|
|
$
|
1.58750
|
|
|
$
|
1.31250
|
|
|
$
|
1.46250
|
|
|
$
|
4.32000
|
|
(1)
|
Redeemed on April 1, 2019 for $25.00 per unit, or a redemption price of $25.00 per unit, plus accrued and unpaid distributions up to but not including the redemption date. In connection with the redemption, the previously incurred offering costs of approximately $11.8 million were recorded as a reduction to net income available to common unitholders.
|
(2)
|
Represents a pro rata distribution from and including the original issue date to and including June 30, 2019.
|
|
Six Months Ended June 30,
|
||||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
Net cash provided by operating activities
|
$
|
827,312
|
|
|
$
|
673,088
|
|
|
$
|
154,224
|
|
Net cash used in investing activities
|
(386,513
|
)
|
|
(525,580
|
)
|
|
139,067
|
|
|||
Net cash used in financing activities
|
(522,931
|
)
|
|
(133,839
|
)
|
|
(389,092
|
)
|
|||
Net (decrease) increase in cash, cash equivalents and restricted cash
|
$
|
(82,132
|
)
|
|
$
|
13,669
|
|
|
$
|
(95,801
|
)
|
|
Six Months Ended June 30,
|
||||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
Improvements to investments in real estate
|
$
|
(780,571
|
)
|
|
$
|
(613,841
|
)
|
|
$
|
(166,730
|
)
|
Acquisitions of real estate
|
(59,397
|
)
|
|
(76,286
|
)
|
|
16,889
|
|
|||
Proceeds from sale of properties, net of sales costs
|
—
|
|
|
195,385
|
|
|
(195,385
|
)
|
|||
Proceeds from the Ascenty joint venture transaction
|
702,439
|
|
|
—
|
|
|
702,439
|
|
|||
Deconsolidation of Ascenty cash
|
(97,081
|
)
|
|
—
|
|
|
(97,081
|
)
|
|||
Other
|
(151,903
|
)
|
|
(30,838
|
)
|
|
(121,065
|
)
|
|||
Net cash used in investing activities
|
$
|
(386,513
|
)
|
|
$
|
(525,580
|
)
|
|
$
|
139,067
|
|
|
Six Months Ended June 30,
|
||||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
Repayments of short-term borrowings, net of proceeds
|
$
|
(627,607
|
)
|
|
$
|
(108,013
|
)
|
|
$
|
(519,594
|
)
|
Net proceeds from issuance of common and preferred stock,
including equity plans |
204,547
|
|
|
1,857
|
|
|
202,690
|
|
|||
Redemption of preferred stock
|
(365,050
|
)
|
|
—
|
|
|
(365,050
|
)
|
|||
Proceeds from unsecured senior notes
|
2,325,566
|
|
|
649,038
|
|
|
1,676,528
|
|
|||
Repayment on unsecured notes
|
(1,368,892
|
)
|
|
—
|
|
|
(1,368,892
|
)
|
|||
Dividend and distribution payments
|
(724,542
|
)
|
|
(673,625
|
)
|
|
(50,917
|
)
|
|||
Other
|
33,047
|
|
|
(3,096
|
)
|
|
36,143
|
|
|||
Net cash used in financing activities
|
$
|
(522,931
|
)
|
|
$
|
(133,839
|
)
|
|
$
|
(389,092
|
)
|
|
Six Months Ended June 30,
|
||||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
Repayments of short-term borrowings, net of proceeds
|
$
|
(627,607
|
)
|
|
$
|
(108,013
|
)
|
|
$
|
(519,594
|
)
|
General partner distributions, net of contributions
|
(160,503
|
)
|
|
1,857
|
|
|
(162,360
|
)
|
|||
Proceeds from unsecured senior notes
|
2,325,566
|
|
|
649,038
|
|
|
1,676,528
|
|
|||
Repayment on unsecured notes
|
(1,368,892
|
)
|
|
—
|
|
|
(1,368,892
|
)
|
|||
Distribution payments
|
(724,542
|
)
|
|
(673,625
|
)
|
|
(50,917
|
)
|
|||
Other
|
33,047
|
|
|
(3,096
|
)
|
|
36,143
|
|
|||
Net cash used in financing activities
|
$
|
(522,931
|
)
|
|
$
|
(133,839
|
)
|
|
$
|
(389,092
|
)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net Income Available to Common Stockholders
|
$
|
31,738
|
|
|
$
|
65,134
|
|
|
$
|
127,607
|
|
|
$
|
151,432
|
|
Adjustments:
|
|
|
|
|
|
|
|
||||||||
Non-controlling interests in operating partnership
|
1,400
|
|
|
2,700
|
|
|
5,700
|
|
|
6,180
|
|
||||
Real estate related depreciation & amortization (1)
|
286,915
|
|
|
295,750
|
|
|
594,779
|
|
|
587,436
|
|
||||
Unconsolidated JV real estate related depreciation & amortization
|
13,623
|
|
|
3,722
|
|
|
17,474
|
|
|
7,198
|
|
||||
(Gain) on real estate transactions
|
—
|
|
|
(14,192
|
)
|
|
—
|
|
|
(53,465
|
)
|
||||
Impairment of investments in real estate
|
—
|
|
|
—
|
|
|
5,351
|
|
|
—
|
|
||||
FFO available to common stockholders and unitholders (2)
|
$
|
333,676
|
|
|
$
|
353,114
|
|
|
$
|
750,911
|
|
|
$
|
698,781
|
|
Basic FFO per share and unit
|
$
|
1.54
|
|
|
$
|
1.65
|
|
|
$
|
3.46
|
|
|
$
|
3.26
|
|
Diluted FFO per share and unit (2)
|
$
|
1.53
|
|
|
$
|
1.64
|
|
|
$
|
3.44
|
|
|
$
|
3.25
|
|
Weighted average common stock and units outstanding
|
|
|
|
|
|
|
|
||||||||
Basic
|
217,346
|
|
|
214,288
|
|
|
217,194
|
|
|
214,149
|
|
||||
Diluted (2)
|
218,497
|
|
|
214,895
|
|
|
218,040
|
|
|
214,774
|
|
||||
(1) Real estate related depreciation and amortization was computed as follows:
|
|
|
|||||||||||||
Depreciation and amortization per income statement
|
$
|
290,562
|
|
|
$
|
298,788
|
|
|
602,048
|
|
|
593,577
|
|
||
Non-real estate depreciation
|
(3,647
|
)
|
|
(3,038
|
)
|
|
(7,269
|
)
|
|
(6,141
|
)
|
||||
|
$
|
286,915
|
|
|
$
|
295,750
|
|
|
$
|
594,779
|
|
|
$
|
587,436
|
|
(2)
|
For all periods presented, we have excluded the effect of dilutive series C, series G, series H, series I, series J and series K 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 G, series H, series I, series J and series K preferred stock, as applicable, which we consider highly improbable.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
FFO available to common stockholders and unitholders
|
$
|
333,676
|
|
|
$
|
353,114
|
|
|
$
|
750,911
|
|
|
$
|
698,781
|
|
FFO available to common stockholders and unitholders—diluted
|
$
|
333,676
|
|
|
$
|
353,114
|
|
|
$
|
750,911
|
|
|
$
|
698,781
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common stock and units outstanding
|
217,346
|
|
|
214,288
|
|
|
217,194
|
|
|
214,149
|
|
||||
Add: Effect of dilutive securities
|
1,151
|
|
|
607
|
|
|
846
|
|
|
625
|
|
||||
Weighted average common stock and units outstanding—diluted
|
218,497
|
|
|
214,895
|
|
|
218,040
|
|
|
214,774
|
|
|
Carrying Value
|
|
Estimated Fair
Value |
||||
Fixed rate debt
|
$
|
8,575.9
|
|
|
$
|
9,108.4
|
|
Variable rate debt subject to interest rate swaps
|
786.1
|
|
|
786.1
|
|
||
Total fixed rate debt (including interest rate swaps)
|
9,362.0
|
|
|
9,894.5
|
|
||
Variable rate debt
|
1,560.5
|
|
|
1,560.5
|
|
||
Total outstanding debt
|
$
|
10,922.5
|
|
|
$
|
11,455.0
|
|
(1)
|
Represents debt which bears interest based on one-month U.S. LIBOR.
|
(2)
|
Represents debt which bears interest based on one-month CDOR. Translation to U.S. dollars is based on exchange rates of $0.76 to 1.00 CAD as of June 30, 2019 and $0.73 to 1.00 CAD as of December 31, 2018.
|
(3)
|
Balance recorded in other assets in the consolidated balance sheets if positive and recorded in accounts payable and other accrued liabilities in the consolidated balance sheets if negative.
|
Assumed event
|
|
Change ($ millions)
|
||
Increase in fair value of interest rate swaps following an assumed 10% increase in interest rates
|
|
$
|
2.7
|
|
Decrease in fair value of interest rate swaps following an assumed 10% decrease in interest rates
|
|
(2.7
|
)
|
|
Increase in annual interest expense on our debt that is variable rate and not subject to swapped interest following a 10% increase in interest rates
|
|
2.8
|
|
|
Decrease in annual interest expense on our debt that is variable rate and not subject to swapped interest following a 10% decrease in interest rates
|
|
(2.8
|
)
|
|
Increase in fair value of fixed rate debt following a 10% decrease in interest rates
|
|
100.2
|
|
|
Decrease in fair value of fixed rate debt following a 10% increase in interest rates
|
|
(95.4
|
)
|
Period
|
|
(a) Total
Number of
Shares (or
Units)
Purchased
|
|
(b) Average Price Paid per Share (or Unit)
|
|
(c) Total Number
of Shares (or
Units) Purchased
as Part of Publicly
Announced Plans
or Programs (1)
|
|
(d) Maximum
Number (or
Approximate Dollar
Value) of Shares (or
Units) that May Yet
Be Purchased Under
the Plans or
Programs (2)
|
|||||
April 1-30, 2019
|
|
14,600,000 shares of Series H Preferred Stock
|
|
$
|
25.00
|
|
|
14,600,000 shares of Series H Preferred Stock
|
|
—
|
|
||
May 1-31, 2019
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
June 1-30, 2019
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total
|
|
14,600,000
|
|
|
$
|
25.00
|
|
|
14,600,000
|
|
|
—
|
|
(1)
|
On February 28, 2019, the Company distributed a Notice of Redemption to all holders of record of its outstanding 7.375% series H cumulative redeemable preferred stock, or the series H preferred stock, announcing its redemption of all 14,600,000 outstanding shares of the series H preferred stock at a redemption price of $25.00 per share. The redemption price was equal to the original issuance price of $25.00 per share, plus accrued and unpaid dividends up to but not including the redemption date. The redemption was made at the Company's option pursuant to Section 5(b) of the Articles Supplementary establishing and fixing the rights and preferences of the series H preferred stock. The redemption date was April 1, 2019.
|
(2)
|
The Company redeemed all outstanding shares of its series H preferred stock on April 1, 2019. The Operating Partnership also redeemed the corresponding 14,600,000 series H preferred units.
|
Exhibit
Number
|
|
Description
|
|
|
|
3.1
|
|
|
|
|
|
3.2
|
|
|
|
|
|
3.3
|
|
|
|
|
|
3.4
|
|
|
|
|
|
4.1
|
|
|
|
|
|
10.1†
|
|
|
|
|
|
10.2†
|
|
|
|
|
|
10.3
|
|
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
31.3
|
|
|
|
|
|
31.4
|
|
|
|
|
|
32.1
|
|
|
|
|
|
32.2
|
|
|
|
|
|
32.3
|
|
|
|
|
|
32.4
|
|
|
|
|
|
101
|
|
The following financial statements from Digital Realty Trust, Inc.’s and Digital Realty Trust, L.P.’s Form 10-Q for the quarter ended June 30, 2019, formatted in XBRL interactive data files: (i) Condensed Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018; (ii) Condensed Consolidated Income Statements for the three and six months ended June 30, 2019 and 2018; (iii) Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2019 and 2018; (iv) Condensed Consolidated Statements of Equity/Capital for the three and six months ended June 30, 2019 and 2018; (v) Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2019 and 2018; and (vi) Notes to Condensed Consolidated Financial Statements.
|
|
|
|
DIGITAL REALTY TRUST, INC.
|
|
|
|
|
August 7, 2019
|
|
|
/S/ A. WILLIAM STEIN
|
|
|
|
A. William Stein
Chief Executive Officer
(principal executive officer)
|
|
|
|
|
August 7, 2019
|
|
|
/S/ ANDREW P. POWER
|
|
|
|
Andrew P. Power
Chief Financial Officer
(principal financial officer)
|
|
|
|
|
August 7, 2019
|
|
|
/S/ EDWARD F. SHAM
|
|
|
|
Edward F. Sham
Chief Accounting Officer
(principal accounting officer)
|
|
|
|
DIGITAL REALTY TRUST, L.P.
|
|
|
|
|
|
|
By: Digital Realty Trust, Inc.
Its general partner
|
|
|
|
|
|
|
|
By:
|
|
|
|
|
|
August 7, 2019
|
|
|
/S/ A. WILLIAM STEIN
|
|
|
|
A. William Stein
Chief Executive Officer
(principal executive officer)
|
|
|
|
|
August 7, 2019
|
|
|
/S/ ANDREW P. POWER
|
|
|
|
Andrew P. Power
Chief Financial Officer
(principal financial officer)
|
|
|
|
|
August 7, 2019
|
|
|
/s/ EDWARD F. SHAM
|
|
|
|
Edward F. Sham
Chief Accounting Officer
(principal accounting officer)
|
6.
|
TERMINATION OF EMPLOYMENT.
|
(h)
|
Definitions. For purposes of this Agreement:
|
7.
|
LIMITATION ON PAYMENTS.
|
9.
|
CODE SECTION 409A.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Digital Realty Trust, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Dated:
|
August 7, 2019
|
By:
|
/s/ A. WILLIAM STEIN
|
|
A. William Stein
|
|
Chief Executive Officer
|
|
(Principal Executive Officer)
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Digital Realty Trust, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Dated:
|
August 7, 2019
|
By:
|
/s/ ANDREW P. POWER
|
|
Andrew P. Power
|
|
Chief Financial Officer
|
|
(Principal Financial Officer)
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Digital Realty Trust, L.P.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Dated:
|
August 7, 2019
|
By:
|
/s/ A. WILLIAM STEIN
|
|
A. William Stein
|
|
Chief Executive Officer
|
|
(Principal Executive Officer)
|
|
Digital Realty Trust, Inc., sole general partner of
|
|
Digital Realty Trust, L.P.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Digital Realty Trust, L.P.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Dated:
|
August 7, 2019
|
By:
|
/s/ ANDREW P. POWER
|
|
Andrew P. Power
|
|
Chief Financial Officer
|
|
(Principal Financial Officer)
|
|
Digital Realty Trust, Inc., sole general partner of
|
|
Digital Realty Trust, L.P.
|
(i)
|
the accompanying Quarterly Report on Form 10-Q of the Company for the quarterly period ended June 30, 2019 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(ii)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.
|
Dated:
|
August 7, 2019
|
|
/s/ A. WILLIAM STEIN
|
|
A. William Stein
|
|
Chief Executive Officer
|
|
(Principal Executive Officer)
|
(i)
|
the accompanying Quarterly Report on Form 10-Q of the Company for the quarterly period ended June 30, 2019 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(ii)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.
|
Dated:
|
August 7, 2019
|
|
/s/ ANDREW P. POWER
|
|
Andrew P. Power
|
|
Chief Financial Officer
|
|
(Principal Financial Officer)
|
(i)
|
the accompanying Quarterly Report on Form 10-Q of the Operating Partnership for the quarterly period ended June 30, 2019 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(ii)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Operating Partnership at the dates and for the periods indicated.
|
Dated:
|
August 7, 2019
|
|
/s/ A. WILLIAM STEIN
|
|
A. William Stein
|
|
Chief Executive Officer
|
|
(Principal Executive Officer)
|
|
Digital Realty Trust, Inc., sole general partner of
|
|
Digital Realty Trust, L.P.
|
(i)
|
the accompanying Quarterly Report on Form 10-Q of the Operating Partnership for the quarterly period ended June 30, 2019 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(ii)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Operating Partnership at the dates and for the periods indicated.
|
Dated:
|
August 7, 2019
|
|
/s/ ANDREW P. POWER
|
|
Andrew P. Power
|
|
Chief Financial Officer
|
|
(Principal Financial Officer)
|
|
Digital Realty Trust, Inc., sole general partner of
|
|
Digital Realty Trust, L.P.
|