Front Valuation Page: Un-Levered Firm Value

Front valuation page
Un-levered firm value

Contractual value 3,607,240
Non-contractual value 7,804,440
Un-levered firm value 11,411,680
Financing effects
Term ITS 377,379
TV of ITS 1,685,826
Total value of FSE 2,063,204
Unconsolidated JVs
Investments in Unconsolidated JVs 66,634
Median P/B ratio 3
Market value of unconsolidated JV 205,946
Minority interest
Total Non controlling interests 30,079
Median P/B ratio 3
Market value of Min interest 92,065
Total firm value 13,772,895
Page 1
in 000's
Preferred equity
Series D Conv Pref
Series E preferred 287,500
Series F preferred 182,500
Series G preferred 250,000
Total pref equity 720,000
Total debt in 2012

Total Net debt 4,222,284 Cash in 2012
Equity Value 9,550,611 Firm value- net debt

Common shares 125,226
Shares from Series D conversion 3,140
Shares from conv debt 6,590
total common shares 134,956
Share price 70.77
Page 2
4,278,565
56,281
Group-6
Maddula N K Srikar P19050
Raghav Kumar P19083
Shruti Agarwal P19001
Suryakant Prasad P19093
Madumitha P19040
Page 3
Discount rate breakout
Enterprise value tax rate net debt un-levered value

Digital reality trust 13100.6 40% 4222.3 11411.68
Discount rate of
Contractual flow 2.07% AA credit rating
Overall ra (ROE) 6.82400% Required unlevered return of the firm
discount for noncontractual FCF 9.02%
Page 4
(in '000)
Contractual value Non-contractual value Contractual value % Non-contractual %

3607.24012072608 7804.43987927392 32% 68%
beta equity 1.015

beta debt 0.1
E/V % 0.72 exhibit-5
D/V % 0.28 rf
risk premium
capm formula Beta asset 0.7588
Unlevered return ra 6.82%
Page 5
exhibit-5
3.03%
5%
Page 6
Cash available for reinvestment 2013 2014
Net income 270,002.92 322,938.80
plus depreciazation & Amor 452,699.00 520,603.85
Less: Pref div 42,917.80 46,913.80
Less: Common Div 200,084.83 243,731.12
Less: Debt payments 228,012.00 483,985.00
Cash available for reinvestment 251,687.29 68,912.73
Reinvestment
Redevelopment expenditure 896,748.72 1,147,880.85
Plus: Acquisition of real estate 585,827.00 749,731.00
Plus: Changes in WC -140,883.00 -160,915.15
Total Reinvestment 1,341,692.72 1,736,696.70
Required funding 1,090,005.43 1,667,783.97
Net issuances
New debt issued 327,001.63 500,335.19
New equity issued 763,003.80 1,167,448.78
Target D/V 0.30 0.30
Cumulative net debt balance

Beginning balance 0.00 377,077.00
plus: net debt issued 377,077.00 378,928.00
Less: Principal payments 0.00 0.00
Ending balance 377,077.00 756,005.00
Payment Schedule:
Unsecured Term Loan - 2.17% 0 0
Unsecured Senior Notes - 4.96% (2) 33,000 0
Mortgage Loans 5.29% 195,012 217,585
Total Payments Before Unamortized Discounts & Premiums 228,012 217,585
(1) Adjusted for unamortized unsecured seniour notes discounts of $11,779 and unamortized mortgage premiums of $1,542.
(2) Includes $175,000 Prudential Facility
Note the company has a revolving credit facility with a balance of $723,729 and an average interest rate of 1.47% as of 12/31/12.
in 000's
2015 2016 2017

378,581.96 442,900.51 459,625.71
598,694.43 688,498.59 791,773.38
46,913.80 46,913.80 46,913.80
293,809.97 351,696.66 366,749.34
517,493.00 216,979.00 916,234.00
119,059.62 515,809.64 -78,498.05
1,179,447.58 1,359,380.26 114,868.36

770,349.00 887,894.00 74,965.00 given in case
-127,160.58 -79,593.04 -14,673.46
1,822,635.99 2,167,681.23 175,159.90
1,703,576.37 1,651,871.59 253,657.95
511,072.91 495,561.48 76,097.39

1,192,503.46 1,156,310.11 177,560.57
0.30 0.30 0.30
756,005.00 1,246,801.00 1,700,099.00

490,796.00 453,298.00 431,884.00
0.00 0.00 0.00
1,246,801.00 1,700,099.00 2,131,983.00
After (1)
0 0 757,839 0
442,000 25,000 50,000 1,188,221
75,493 191,979 108,395 3,912
517,493 216,979 916,234 1,192,133
tgage premiums of $1,542.
st rate of 1.47% as of 12/31/12.

Debt paydown schedule
Debt pay-down schedule in 000's
Cash available to pay-down debt 2012 2013 2014 2015
Net income 270,002.92 322,938.80 378,581.96

Plus: deprecia& amorti 452,699.00 520,603.85 598,694.43
Less: Pref div 42,917.80 46,913.80 46,913.80
Less: Common stock div 200,084.83 243,731.12 293,809.97
Plus: Cash on blance sheet 77,958.97 107,986.73 149,580.40
Cash available for debt service 557,658.26 660,884.46 786,133.02
Revolving credit facility

Beginning balance 723,729.00 723,729.00 723,729.00
Less: Mandatory amortization 0.00 0.00 0.00
Less: Additional amortization 0.00 0.00 0.00
Ending balance 723,729.00 723,729.00 723,729.00 723,729.00
Unsecured term loans

Less: Mandatory amortization 0.00 0.00 0.00
Ending balance 757,839.00 757,839.00 757,839.00 757,839.00
Unsecured senior notes

Beginning balance 1,738,221.00 1,705,221.00 1,705,221.00
Less: Mandatory amortization 33,000.00 0.00 442,000.00
Ending balance 1,738,221.00 1,705,221.00 1,705,221.00 1,263,221.00
Mortgage laons
Less: Mandatory amortization 195,012.00 217,585.00 75,493.00
Ending balance 792,376.00 597,364.00 379,779.00 304,286.00
Convertible debt (assumed forced conversion)

Beginning balance 266,400.00 266,400.00 0.00
less: Forced equity conversion 0.00 266,400.00 0.00
Less: Additional Amortization 0.00 0.00 0.00
Ending balance 266,400.00 266,400.00 0.00 0.00
Debt Payments each year 228,012.00 483,985.00 517,493.00
Page 9
Total debt in 2012 4278565
Page 10
2016 2017
442,900.51 459,625.71
688,498.59 791,773.38
46,913.80 46,913.80
351,696.66 366,749.34
207,194.86 287,000.91
939,983.50 1,124,736.86
723,729.00 723,729.00
0.00 0.00 from exhibit
0.00 0.00
723,729.00 723,729.00
757,839.00 757,839.00
0.00 757,839.00 from exhibit
0.00 0.00
757,839.00 0.00
1,263,221.00 1,238,221.00
25,000.00 50,000.00 from exhibit
0.00 0.00
1,238,221.00 1,188,221.00
304,286.00 112,307.00
191,979.00 108,395.00 from exhibit
0.00 0.00
112,307.00 3,912.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
216,979.00 916,234.00
Page 11
Dividend schedule
Series E convertible Preferred 2010 2011 2012 2013

Dividend yield 7%
Liquidation preference 25
Annual dividend NM 1.75 1.75 1.75
Share outstanding NM 11,500.00 11,500.00 11,500.00
Dividend paid NM 5,926.00 20,125.00 20,125.00
Series F convertible Preferred

Dividend yield 6.625%
Annual dividend NM NM 1.66 1.66
Share outstanding NM NM 7,300.00 7,300.00
Dividend paid NM NM 8,934.00 12,088.80
Series G convertible Preferred

Dividend yield 5.875%
Annual dividend NM NM NM 1.47
Share outstanding NM NM NM 10,000.00
Dividend paid NM NM NM 10,704.00
Required Dividends
Net income 270,002.92
Required distribution rate 0.90
Required distributions 243,002.63
Total preferred dividends 42,917.80
Required common Dividends 200,084.83
Series D convertible Preferred

Dividend yield 0.055
Conversion rate 0.636
Shares outstanding 4937 all are
Liquidation preferences 25 given data
Annual Dividend(1) 1.38
Coomon stock dividend 3.12
assuming conversion
New shares from conversion 3139.932 3140 = 4937*0.636
Plus: existing shares 125226
Total new common shares 128365.93
Page 12
Dividend schedule
2014 2015 2016 2017
1.75 1.75 1.75 1.75 1.75 = 7%*25

11,500.00 11,500.00 11,500.00 11,500.00
20,125.00 20,125.00 20,125.00 20,125.00
1.66 1.66 1.66 1.66 1.656 = 6.625%*25

7,300.00 7,300.00 7,300.00 7,300.00
12,088.80 12,088.80 12,088.80 12,088.80
1.47 1.47 1.47 1.47 1.47 = 5.875%*25

10,000.00 10,000.00 10,000.00 10,000.00
14,700.00 14,700.00 14,700.00 14,700.00
322,938.80 378,581.96 442,900.51 459,625.71

0.90 0.90 0.90 0.90 given in exhibit
290,644.92 340,723.77 398,610.46 413,663.14
46,913.80 46,913.80 46,913.80 46,913.80
243,731.12 293,809.97 351,696.66 366,749.34
Page 13
Redev expenditure
2013 2014 2015

Gross property sq footage 25,420.00 29,831.00 33,522.00
Increase in gross sq ft 3,324.00 4,141.00 4,141.00
Dev cost per sq ft 269.78 277.20 284.82
Redevelopment expenditure 896,748.72 1,147,880.85 1,179,447.58
Page 14
Redev expenditure
2016 2017
38,167.00 38,548.00 from case
4,645.00 382.00 from case
292.65 300.70 Considered inflation of 2.75%
1,359,380.26 114,868.36
Page 15
Rnt area, rev, Cont Val
Table 5 End of year Occupancy Rates 2012 EOY Ren
Occupancy by lease type 2010 2011 2012
Turnkey flex 93.40% 91.40% 92.40% 132.86
power based locations 96.30% 97.20% 97.90% 33.34
Co location NM 77.10% 69.40% 177.18
non technical 91.10% 93.00% 89.90% 18.41
Total Net rentable SQFT 94.60% 94.80% 94.40% 50.84
Rent per SQFT

Total rental revenue/net rentable SQFT 46.76 51.59 50.84
Growth 11.80% 10.30% -1.50%
Table 2
Net Rentable SQFT Property Type 2010 2011 2012 2013
Turnkey flex 3,203.10 3,492.00 4,699.50 4,937.90
power based locations 8,288.80 9,131.10 10,271.10 12,793.65
Co location 0.00 319.20 321.00 224.45
non technical 3,085.70 2,965.80 4,196.60 4,489.00
Total Net rentable SQFT 14,577.60 15,908.10 19,488.80 22,445.00
Total SQFT Under Development 2,166.80 2,385.00 2,427.30
Total Gross SQFT 16,744.50 18,293.00 21,916.00
Total Occupied Rentable Area 2010 2011 2012

Turnkey flex 2991.70 3191.69 4342.34
power based locations 7982.11 8875.43 10055.41
Co location NA 246.10 222.77
non technical 2811.07 2758.19 3772.74
Total Net rentable SQFT 13790.41 15080.88 18397.43
Table 8
2010 2011 2012 2013
US Service Provider capacity Growth 0.118 0.16 0.167 0.152
SQFT under development 2167 2385 2427 2795
Gross SQFT 16744 18293 21916 25240
Total rental revenue

2010 2011 2012 2013
Turnkey flex 674,091
power based locations 438,270
Co location 40,862
non technical 84,915
Rental Revenue 68026 820711 990715 1,238,138
Contractual Revenue/total Revenue 0.651
Page 16
Contractual EBIT 297834.39
add depreciation 311238.15
Change in NWC -140,883
-redevelopment Expenses 754,035
Contractual FCF 468189.53
0.9797198001 0.9797198001
Contractual COC 2.07% 458694.55703
Avg length Lease(in year) 7
PV of contractual FCF 2003088.2

PV OF POST 2017 1604151.9
Total Contractual Value 3607240.1207
Page 17
2013 2014 2015 2016 2017
136.51 140.27 144.13 148.09 152.16

34.26 35.20 36.17 37.16 38.18
182.05 187.06 192.20 197.49 202.92
18.92 19.44 19.97 20.52 21.08
2014 2015 2016 2017

5,747.94 6,557.98 7,466.80 7,541.38
14,892.39 16,991.13 19,345.80 19,539.03
261.27 298.09 339.40 342.79
5,225.40 5,961.80 6,788.00 6,855.80
26,127.00 29,809.00 33,940.00 34,279.00
All in '000s
2014 2015 2016 2017

0.164 0.141 0.139 0.01
3254 3713 4227 4269
29381 33522 38167 38548
2014 2015 2016 2017

806,251 945,170 1,105,748 1,147,504 656,049
524,196 614,516 718,918 746,067 426,540
48,873 57,294 67,028 69,559 39,768
101,563 119,063 139,291 144,551 82,642
1,480,883 1,736,043 2,030,985 2,107,681 1,141,104
3023333
0.511 0.405 0.316 0.285
Page 18
279618.90 259800.71 237147.56 221959.92
292202.88 271492.80 247820.16 231949.02
-160,915 -127,161 -79,593 -14,673
854,322 967,947 1,096,683 1,242,542
410906.63 404132.93 405374.68 439235.49 1777199
0.9598508868 0.940384919 0.9213137249 0.9026292984
394409.09362 380040.50797 373477.2574 396466.81825 1.1078745192
Page 19
All in '000s
Page 20
ITS calculation
PV OF ITS in 000's
Unlevered Firm Value PV FV

CF Value 3607240.1207 4121233.9675
NCF Value 7804439.8793 From Q2
Total 11411680 4121233.9675 4121233.9675
Target D/V ratio 30.00% 45.00% 30.00%

Marginal Rate 40.00% 40.00% 40.00%
Ending Debt Balance 3,423,504 1,854,555 1,236,370

ITS(2017) 1,369,402 741,822 494,548
PV OF ITS(2017) 885,946 479,928 319,952
Intermediate term tax shields 2013 2014 2015 2016

228,012 217,585 517,493 216,979
ITS 91204.8 87034 206997.2 86791.6
PV(2012) 83597.433547 73120.548845 159400.69812 61260.239771
Discount Factor 0.9165902841 0.840137749 0.7700620981 0.7058314373
Sum Of ITS 377378.92029
Page 21
ITS calculation
1685825.5251 Terminal values interest tax shield
Page 22
#REF!
Project:
Analysis:
Footer:
Digital Realty Trust - Income & Free Cash Flows
Estim
Operating Results: 2010 2011 2012 2013 2014
Rental Revenue 682,026 820,711 990,715 1238137.7 1480882.9
Plus: Tenant Reimbursements 178,081 211,811 272,309 309,534 370,221
Plus: Construction Management Fees 4,923 29,286 8,428 10,533 12,598
Plus: Other Revenue 371 902 7,615 9,517 11,383
Total Revenue 865,401 1,062,710 1,279,067 1,598,503 1,911,900
Less: Rental Property Operating & Maintenance 250,225 307,922 380,176 475,122 568,273
Less: Property Taxes 44,432 49,946 69,475 86,826 103,849
Less: Insurance 8,133 8,024 9,600 11,998 14,350
Less: Construction Management Expenses 1,542 22,715 1,596 1,995 2,386
Less: General & Administrative 47,196 53,624 57,209 71,496 85,514
Less: Transaction Expenses 7,438 5,654 11,120 13,897 16,622
Less: Other 226 90 1,260 1,575 1,883
EBITDA 506,209 614,735 748,631 935,595 1,119,025
Less: Depreciation & Amortization 263,903 310,425 382,553 478,092 571,826
EBIT 242,306 304,310 366,078 457,503 547,199
Plus: Equity in Earnings of Unconsolidated Joint Ventures 5,254 4,952 8,135 10,167 12,160
Plus: Interest Income 616 3,260 1,892 2,365 2,828
Less: Interest Expense 137,384 149,350 157,108 196,344 234,839
Less: Other Losses (Income) 5,380 1,046 2,950 3,687 4,410
Net Income 105,412 162,126 216,047 270,003 322,939
Future Lease Min lease payment 962,547 927,074

Rental Revenue from new leases 275,591 553,809
Assets: 2009 2010 2011 2012 2013 2014

Cash & Cash Equivalent 72,320 11,719 40,631 56,281 77,959 107,987
#REF!
($ 000's)
Estimated
2015 2016 2017
1736042.8 2030984.8 2107680.7
434,011 507,746 526,920 27.49%
14,768 17,278 17,930 0.85%
13,344 15,611 16,200 0.77%
2,241,326 2,622,112 2,721,131 129.11%
666,187 779,368 808,799 38.37%
121,742 142,425 147,803 7.01%
16,822 19,680 20,423 0.97%
2,797 3,272 3,395 0.16%
100,248 117,280 121,708 5.77%
19,486 22,796 23,657 1.12%
2,208 2,583 2,681 0.13%
1,311,836 1,534,708 1,592,663 75.56%
670,353 784,241 813,856 38.61%
641,483 750,467 778,807 36.95%
14,255 16,677 17,307 0.82%
3,315 3,879 4,025 0.19%
275,302 322,074 334,237 15.86%
5,169 6,048 6,276 0.30%
378,582 442,901 459,626 21.81%
857,358 778,161 722,725

878,685 1,252,824 1,384,956
2015 2016 2017

149,580 207,195 287,001
#REF!
in 000's
2013
Gross Property Square Footage 25420
Increase in Gross Square Feet 3324
Average Land per square foot 35.45
Average Base Building Cost Per Square Feet 176.22
Real Estate Acquisition Expenditures 585827
in 000's
2014 2015 2016

29831 33522 38167
4141 4141 4645
36.42 37.43 38.45
181.06 186.04 191.16
749731 770349 887894
2017
38548
382
39.51
196.41
74965 From Case
Working capital
WC 2009 2010 2011 2012 2013 2014

Acc receivable 46,086 70,337 90,580 168,286 133,920 160,704
plus:Plan: Deferred rent 145,550 190,067 246,815 321,715 359,515 431,418
less: Acc payable 151,229 237,631 315,133 646,427 471,429 565,715
Less: Sec deposits 68,270 85,775 101,538 154,171 162,889 187,322
Net WC -27,863 -63,002 -79,276 -310,597 -140,883 -160,915
Property data
Sq ft under development 1,784 2,167 2,385 2,427 2,795 3,075
Dev cost per sq ft 214 193 266 377 270 278
Redev cost 381,830 418,729 634,672 914,663 754,035 854,322
Total net investment

Change in Net WC -35,139 -16,274 -231,321 169,714 -20,032
Plus: Redev Expen 418,729 634,672 914,663 754,035 854,322
Less: Depre & Amor 263,903 310,425 382,553 452,699 520,604
Total net investment 119,687 307,973 300,789 471,050 313,686
Page 32
Working capital
in 000's
2015 2016 2017

192,845 231,414 277,697
517,702 621,242 745,490
622,286 684,515 752,966
215,421 247,734 284,894
-127,161 -79,593 -14,673
3,382 3,720 4,092

286 295 304
967,947 1,096,683 1,242,542
33,755 47,568 64,920

967,947 1,096,683 1,242,542
598,694 688,499 791,773
403,007 455,752 515,689
Page 33
Digital Realty Trust - Balance Sheets
Assets: 2009 2010

Cash & Cash Equivalents 72,320 11,719
Accounts Receivable 46,086 70,337
Total Current Assets 118,406 82,056
Deferred Rent 145,550 190,067

Land 382,763 478,629
Buildings & Improvements (1) 2,768,038 4,088,213
Investments in Unconsolidated Joint Ventures 6,392 17,635
Acquired Leases (2) 250,077 374,905
Deferred Financing Costs 21,073 22,825
Restricted Cash 37,810 60,062
Other Assets 14,950 15,091
Total Assets 3,745,059 5,329,483
Liabilities & Owners' Equity:

Accounts Payable 151,229 237,631
Accrued Dividends (3) 37,004 51,210
Total Current Liabilities 188,233 288,841
Acquired Leases 69,311 93,250

Security Deposits & Prepaid Rent 68,270 85,775
Global Revolving Credit Facility 205,547 333,534

Unsecured Term Loan 0 0
Unsecured Senior Notes 83,000 1,066,030
Mortgage Loans 1,063,663 1,043,188
Other Secured Loans 0 10,500
New Real Estate Acquisition Debt 0 0
Convertible Debt 432,234 353,702
Total Debt 1,784,444 2,806,954
Preferred Stock (4) 662,338 502,341

Common Stock, Paid-In Capital & Retained Earnings 896,657 1,460,177
Total Non-Controlling Interests 75,806 92,145
Total Liabilities & Owners' Equity 3,745,059 5,329,483
(1) Includes tenant improvements

(2) Includes acquired above market leases. All acquired leases are net of accumulated amortization.
(3) Includes accrued dividends
(4) Includes all outstanding series
in '000s
2011 2012 2013 2014 2015 2016

40,631 56,281 77,959 107,987 149,580 207,195
90,580 168,286 312,654 580,871 1,079,183 2,004,983
131,211 224,567 390,613 688,857 1,228,763 2,212,178
246,815 321,715 419,345 546,602 712,477 928,689

555,113 661,058 787,223 937,467 1,116,385 1,329,451
4,663,426 6,875,444 8,256,314 9,456,283 10,830,655 12,404,778
23,976 66,634 185,189 514,676 1,430,386 3,975,324
365,082 560,260 859,783 1,319,435 2,024,824 3,107,323
29,849 30,621 31,413 32,225 33,059 33,914
55,165 44,050 35,175 28,087 22,428 17,909
27,929 34,865 305,550 1,516,831 4,045,679 9,034,971
6,098,566 8,819,214 11,270,603 15,040,463 21,444,656 33,044,536
315,133 646,427 1,326,005 2,720,011 5,579,513 11,445,161

75,455 93,434 115,697 143,265 177,401 219,671
390,588 739,861 1,441,702 2,863,276 5,756,914 11,664,832
85,819 148,233 256,039 442,250 763,887 1,319,443

101,538 154,171 234,087 355,427 539,666 819,406
275,106 723,729 723729 723729 723729 723729

0 757,839 757839 757839 757839 757839
1,441,072 1,738,221 1,738,221 1705221 1705221 1263221
947,132 792,376 792,376 597364 379779 304286
10,500 0 0 0 0 0
0 0 0 0 0 0
266,400 266,400 266,400 266400 0 0
2,940,210 4,278,565 4,278,565 4,050,553 3,566,568 3,049,075
569,781 572,711 652,939 748,233 977,548 1,463,538

1,953,136 2,895,594 4,343,391 6,515,087 9,772,630 14,658,945
57,494 30,079 63,881 65637.7275 67442.765006 69297.4410439219
6,098,566 8,819,214 11,270,603 15,040,463 21,444,656 33,044,536
2017
287,001
3,725,001
4,012,001
1,210,515
1,583,180
14,207,682
11,048,203
4,768,542
34,791
14,301
18,147,640
55,026,856
23,477,265
272,013
23,749,278
2,279,041
1,244,151
723729
757839
1238221
112307
0
0
0
2,832,096
2,862,670
21,988,417
71203.1206726298
55,026,856
DIGITAL REALTY TRUST CASE Case Exhibit 1
Project: DIGITAL REALTY TRUST CASE

Analysis: Case Exhibit 1
Footer: 59th Street Partners LLC
59th Street Partners LLC

US Service Provider Capacity (000's Sq. Ft.): 2009 2010 2011 2012 2013 2014 2015 2016 CAGR (1)
POP Server Closet 7,200 7,400 7,500 7,500 7,500 7,600 7,600 7,700 0.5%
POP Server Room 9,700 9,600 9,600 9,600 9,700 9,900 10,000 10,200 1.2%
Localized SP Datacenter 2,300 2,400 2,400 2,400 2,400 2,400 2,400 2,400 0.0%
Midtier SP Datacenter 1,000 1,100 1,100 1,100 1,200 1,200 1,200 1,200 1.8%
High-end SP Datacenter 19,600 24,000 31,000 39,600 49,300 60,500 71,900 84,500 22.2%
Total 39,800 44,500 51,600 60,200 70,100 81,600 93,100 106,000 15.5%
US Service Provider Capacity Growth:

POP Server Closet 2.8% 1.4% 0.0% 0.0% 1.3% 0.0% 1.3%
POP Server Room -1.0% 0.0% 0.0% 1.0% 2.1% 1.0% 2.0%
Localized SP Datacenter 4.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Midtier SP Datacenter 10.0% 0.0% 0.0% 9.1% 0.0% 0.0% 0.0%
High-end SP Datacenter 22.4% 29.2% 27.7% 24.5% 22.7% 18.8% 17.5%
Total 11.8% 16.0% 16.7% 16.4% 16.4% 14.1% 13.9%
US Service Provider Average Capacity (Sq. Ft.):

POP Server Closet 61 61 60 59 59 59 59 -0.7%
POP Server Room 165 163 160 159 159 159 159 -0.5%
Localized SP Datacenter 576 568 556 551 545 540 534 -1.2%
Midtier SP Datacenter 4,680 4,610 4,587 4,564 4,541 4,541 4,541 -0.3%
High-end SP Datacenter 26,705 30,605 34,132 37,300 40,737 43,604 46,307 8.6%
(1) Compound annual growth rate from 2011 to 2016.

Source: IDC U.S. Datacenter 2012-2016 Forecast, September 2012.



IDC Private Cloud Infrastructure Forecast ($ Billions)
Private Cloud IT Infrastructure Revenue Forecast:

2010 2011 2012 2013 2014 2015 2016 2017 CAGR (1)
Hardware 4.3 5.2 6.4 7.7 9.0 10.1 11.0 12.0 13.4%
Software 1.7 2.3 3.4 4.6 5.8 7.3 8.7 10.2 24.6%
Total 6.0 7.5 9.8 12.3 14.8 17.4 19.7 22.2 17.8%
(1) Compound annual growth rate from 2012-2017. Revenue in $ billions.

Source: IDC Worldwide Private Cloud IT Infrastructure 2013-2017 Forecast, April 2013.
Worldwide Public Platform-as-a-Service Revenue Forecast:

2008 2009 2010 2011 2012 2013 2014 2015 2016 CAGR (1)
Integration as a Service 0.88 0.85 0.88 1.05 1.21 1.40 1.62 1.89 2.22 16.3%
Database as a Service 0.07 0.15 0.22 0.40 0.68 1.00 1.46 1.92 2.51 44.3%
Application Platform as a Service 0.04 0.09 0.19 0.38 0.58 0.82 1.10 1.43 1.81 36.6%
Cloud Testing 0.13 0.15 0.20 0.26 0.36 0.49 0.66 0.87 1.10 33.4%
Other Platform as a Service 0.16 0.22 0.31 0.47 0.68 0.95 1.29 1.71 2.18 35.9%
Total 1.28 1.46 1.81 2.56 3.51 4.67 6.13 7.81 9.83 30.9%
(1) Compound annual growth rate from 2012-2016. Revenue in $ billions.

Source: IDC Worldwide Public Platform as a Service 2012-2016 Forecast, September 2012.



Worldwide Disk Storage Systems Capacity Shipped and Direct HDD Capacity Acquired by Public Cloud Service Providers, 2009–2016 (Exabyte)
2009 2010 2011 2012 2013 2014 2015 2016 CAGR (1)
DSS capacity shipped 1.4 3.0 4.3 5.7 8.3 12.5 18.7 27.0 44.4%
Growth (%) NA 112.0 42.1 32.8 46.8 50.1 49.5 44.6
Share of total disk storage capacity (%) 13.8 18.5 19.2 20.5 21.6 22.6 24.1 25.2
Non-OEM storage hardware acquired 2.5 4.9 7.8 14.1 20.0 30.3 42.2 65.9 53.2%
Growth (%) NA 98.6 60.5 80.2 41.8 51.2 39.5 56.1
Total 3.9 7.9 12.1 19.8 28.3 42.8 60.9 92.9 50.3%
(1) Compound annual growth rate from 2012-2016.

Source: IDC Worldwide Entrerprise Storage for Public and Private Cloud 2012-2016 Forecast: Enabling Public Cloud Service Providers and Private
Clouds, December 2012.



Worldwide Virtualizations Services Spending Forecast:

Service Categories ($ Millions): 2011 2012 2013 2014 2015 2016 CAGR (1)
IT consulting 2,030 2,275 2,533 2,778 3,017 3,231 9.7%
Systems integration 5,975 6,788 7,659 8,518 9,379 10,187 11.3%
Network consulting and integration 2,271 2,578 2,905 3,227 3,550 3,852 11.1%
IT consulting (storage) 728 823 924 1,019 1,110 1,185 10.2%
Systems integration (storage) 1,462 1,670 1,894 2,120 2,353 2,582 12.0%
Hardware support services 5,012 5,192 5,514 5,801 5,553 5,224 0.8%
Software support services 1,398 1,784 2,026 2,455 3,181 4,179 24.5%
IT education and training 1,242 1,303 1,365 1,430 1,498 1,411 2.6%
Total 20,117 22,412 24,819 27,348 29,640 31,850 9.6%
(1) Compound annual growth rate from 2011-2016.

Source: IDC Worldwide Virtualization Services 2012-2016 Forecast, September 2012.


Digital Real Estate & Datacenter Company Required Returns (Local Currency in MM)
Stock Equity Net Preferred Minority Enterprise Current Historical Equity Debt
Company: Ticker: Price (1) Shares Value Debt Equity Interest Value D/V (2) D/V (3) Beta (4) Beta (5)
CoreSite Realty COR 32.22 20.6 662.7 51.6 115.0 372.5 1,201.9 4.3% 9.6% 1.255 0.05
Digital Realty Trust DLR 66.13 125.1 8,275.6 4,222.3 572.7 30.1 13,100.6 32.2% 28.8% 1.015 0.10
DuPont Fabros Technology DFT 22.80 63.0 1,437.4 684.0 351.3 453.9 2,926.5 23.4% 29.3% 1.034 0.10
Equinix, Inc. EQIX 212.67 48.1 10,224.3 2,592.0 0.0 84.2 12,900.5 20.1% 24.5% 1.489 0.00
Internap Network Services INAP 8.68 52.0 451.2 115.4 0.0 0.0 566.6 20.4% -10.8% 0.788 0.00
Interxion Holding NV INXN 24.92 68.2 1,698.9 289.3 0.0 0.0 1,988.3 14.6% 11.5% 1.920 0.05
Peer 1 Network Enterprises (6) PIX 3.67 128.5 471.5 106.6 0.0 0.0 578.1 18.4% 9.5% 0.663 0.05
Rackspace Hosting RAX 55.86 136.9 7,649.9 (166.7) 0.0 0.0 7,483.2 -2.2% 2.2% 1.496 0.00
Telocity Group Plc (6) TCY 9.35 200.4 1,873.5 258.1 0.0 0.0 2,131.5 12.1% 6.2% 1.017 0.00
Assumed Risk-Free Rate 3.03%

Assumed Market Risk Premium 5.00%
(1) As of 2/27/2013.
(2) Based on net debt as of 2/27/2013.
(3) Based on 5-year average historical net debt.
(4) Based on 5-year monthly returns except where noted (see monthly data). Peer 1 and Telocity betas are as reported by ThompsonOne on 3/1/13, all other source data is from CRSP.
(5) Case writer estimate.
(6) Based on ThompsonOne data.
Source: Data from S&P CapitalIQ accessed on 2/27/13.
Last 12 Months: 5 Year Average:

Revenue EBIT EBITDA NOPAT FCF Revenue EBIT EBITDA NOPAT FCF
Company: Ticker: Growth Margin Margin Margin (1) Margin RNOA (2) Growth (3) Margin Margin Margin (1) Margin RNOA
CoreSite Realty COR 19.7% 9.0% 39.3% 9.0% 45.1% 2.5% 90.9% -19.3% -26.2% -19.3% NA -0.1%
Digital Realty Trust DLR 20.6% 29.1% 55.8% 29.1% 57.7% 5.7% 26.6% 27.9% 56.5% 27.9% 48.8% 5.7%
DuPont Fabros Technology DFT 15.0% 34.9% 58.8% 34.9% 44.3% 4.8% 40.2% 32.6% 54.7% 32.6% 36.5% 4.0%
Equinix, Inc. EQIX 20.8% 22.1% 43.3% 13.3% -34.6% 5.6% 35.2% 18.3% 39.9% 11.0% -8.0% 4.8%
Internap Network Services INAP 11.8% 1.9% 16.8% 1.1% -8.8% 1.1% 3.2% -0.4% 13.4% -0.3% -4.5% -0.5%
Interxion Holding NV INXN 13.4% 23.5% 39.4% 18.6% -26.9% 9.9% 22.5% 24.0% 37.7% 19.5% -30.3% 14.8%
Peer 1 Network Enterprises PIX 19.8% 1.5% 20.7% 0.9% -2.8% 1.2% 12.5% 8.2% 23.7% 4.9% -6.3% 12.3%
Rackspace Hosting RAX 27.7% 13.2% 32.3% 7.9% 9.0% 16.5% 29.3% 10.4% 29.3% 6.2% 7.1% 12.1%
Telocity Group Plc TCY 18.0% 30.9% 45.8% 18.5% -12.3% 22.6% 23.6% 25.2% 40.1% 15.1% -10.5% 15.6%
(1) NOPAT = EBIT(1-t).

(2) RNOA is return on net operating assets. RNOA = NOPAT/Avg. Net Operating Assets, where NOA is total operating assets less total operating liabilities.
(3) 5 year revenue growth is based on a geometric average.
Note: FCF margins are based on changes to net operating assets excluding acquisitions.
DIGITAL REALTY TRUST CASE ### Case Exhibit 5
Last 12 Months: 5 Year Average:

Revenue EBIT EBITDA FCF Revenue EBIT EBITDA FCF
Company: Ticker: Multiple Multiple Multiple Multiple EPS P/B Multiple Multiple Multiple Multiple EPS P/B
CoreSite Realty COR 5.3x 99.3x 14.3x 14.0x 180.0x 2.3x 6.2x NM 20.2x 15.8x NM 1.7x
Digital Realty Trust DLR 10.5x 35.3x 18.4x 16.3x 44.9x 3.0x 10.2x 38.6x 18.2x 21.9x 98.1x 3.7x
DuPont Fabros Technology DFT 9.5x 27.3x 16.2x 22.0x 51.3x 1.7x 11.2x 48.7x 22.9x 27.5x 68.1x 1.3x
Equinix, Inc. EQIX 6.4x 30.2x 15.1x NM 84.8x 4.2x 5.9x 58.0x 17.1x NM 97.0x 3.1x
Internap Network Services INAP 1.7x 142.8x 10.2x NM NM 1.7x 1.0x 158.1x 7.8x NM NM 1.3x
Interxion Holding NV INXN 5.1x 19.2x 12.4x NM 32.4x 3.2x 3.9x 15.6x 9.8x NM 28.6x 2.6x
Peer 1 Network Enterprises PIX 3.3x 214.6x 15.9x NM NM 10.9x 2.0x 38.5x 8.3x NM NM 5.0x
Rackspace Hosting RAX 7.5x 57.5x 23.3x 77.5x 96.3x 12.1x 4.7x 46.0x 16.2x 79.8x 80.4x 8.1x
Telocity Group Plc TCY 7.4x 24.2x 16.3x NM 36.9x 5.4x 5.4x 32.2x 15.8x NM 33.3x 3.9x



Digital Realty Trust - Balance Sheets ($ 000's)
Assets: 2009 2010 2011 2012

Cash & Cash Equivalents 72,320 11,719 40,631 56,281
Accounts Receivable 46,086 70,337 90,580 168,286
Total Current Assets 118,406 82,056 131,211 224,567
Deferred Rent 145,550 190,067 246,815 321,715

Land 382,763 478,629 555,113 661,058
Buildings & Improvements (1) 2,768,038 4,088,213 4,663,426 6,875,444
Investments in Unconsolidated Joint Ventures 6,392 17,635 23,976 66,634
Acquired Leases (2) 250,077 374,905 365,082 560,260
Deferred Financing Costs 21,073 22,825 29,849 30,621
Restricted Cash 37,810 60,062 55,165 44,050
Other Assets 14,950 15,091 27,929 34,865
Total Assets 3,745,059 5,329,483 6,098,566 8,819,214
Liabilities & Owners' Equity:

Accounts Payable 151,229 237,631 315,133 646,427
Accrued Dividends (3) 37,004 51,210 75,455 93,434
Total Current Liabilities 188,233 288,841 390,588 739,861
Acquired Leases 69,311 93,250 85,819 148,233

Security Deposits & Prepaid Rent 68,270 85,775 101,538 154,171
Global Revolving Credit Facility 205,547 333,534 275,106 723,729

Unsecured Term Loan 0 0 0 757,839
Unsecured Senior Notes 83,000 1,066,030 1,441,072 1,738,221
Mortgage Loans 1,063,663 1,043,188 947,132 792,376
Other Secured Loans 0 10,500 10,500 0
New Real Estate Acquisition Debt 0 0 0 0
Convertible Debt 432,234 353,702 266,400 266,400
Total Debt 1,784,444 2,806,954 2,940,210 4,278,565
Preferred Stock (4) 662,338 502,341 569,781 572,711

Common Stock, Paid-In Capital & Retained Earnings 896,657 1,460,177 1,953,136 2,895,594
Total Non-Controlling Interests 75,806 92,145 57,494 30,079
Total Liabilities & Owners' Equity 3,745,059 5,329,483 6,098,566 8,819,214
(1) Includes tenant improvements

(2) Includes acquired above market leases. All acquired leases are net of accumulated amortization.
(3) Includes accrued dividends
(4) Includes all outstanding series



Contractual Future Lease Revenue (1): 2010 2011 2012 2013 2014 2015 2016 2017 After
Minimum Future Lease Revenue 509,506 702,727 802,273 962,547 927,074 857,358 778,161 722,725 3,023,333
(1) Source: Footnote 16, company 10k for the years 2010-2012, and footnote 12 from the 2009 company 10k.
Turnkey Lease Expirations: 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 After
Number of Leases 143 104 70 76 72 47 43 35 42 40 120
Square Feet Expiring (000's) 329.0 355.0 181.3 309.4 415.7 363.5 574.8 282.2 342.5 348.2 840.6 4,342
Annualized Rent Per Occupied Square Foot 132.12 152.11 123.89 151.97 110.59 133.03 159.60 154.77 155.97 110.78 104.96
Annualized Rent 43,463 54,001 22,455 47,019 45,969 48,358 91,733 43,671 53,424 38,575 88,231
Power Based Building Lease Expirations:

Number of Leases 26 34 51 37 19 13 20 15 7 14 110
Square Feet Expiring (000's) 59.7 698.3 1,613.6 1,215.7 244.9 602.0 1,106.6 354.4 680.7 807.4 2,671.3 10,055
Annualized Rent 4,009 27,172 56,298 29,311 7,005 20,955 39,738 13,474 14,757 24,182 98,359
Co-Location Lease Expirations:

Number of Leases 157 72 37 13 16 1 6 1 1 0 1
Square Feet Expiring (000's) 63.1 61.4 44.9 23.1 13.2 1.9 8.4 0.0 3.2 0.0 3.7 223
Annualized Rent 11,169 12,628 8,349 3,866 1,988 349 675 0 276 0 168
Non-Technical Lease Expirations:

Number of Leases 97 59 64 54 58 46 40 30 28 26 71
Square Feet Expiring (000's) 331.7 280.1 615.4 200.0 707.1 261.4 168.9 271.1 194.3 212.1 532.6 3,775
Annualized Rent 7,268 5,174 6,018 3,951 16,822 5,516 3,585 7,010 3,620 2,912 7,617
18,394



Real Estate Aqcuisition Costs: 2009 2010 2011 2012

Increase in Gross Square Feet 1,397 2,394 1,541 3,623
Real Estate Acquisition Cost 137,996 1,318,995 196,602 1,561,183
Acquisition Cost Per Square Foot 98.76 551.02 127.56 430.91
Development Costs:
Gross Square Feet 14,358 16,752 18,293 21,916
Square Feet Under Development 1,784 2,167 2,385 2,427
Redevelopment Cost 381,913 418,705 634,650 914,750
Development Cost Per Square Foot 214.03 193.23 266.11 376.87
12.4% 12.9% 13.0% 11.1% 12.4%



Series E Convertible Preferred: 2010 2011 2012

Dividend Yield 7.00%
Liquidation Preferrenc 25.00
Annual Dividend (1) NM 1.75 1.75
Shares Outstanding NM 11,500 11,500
Dividends Paid (2) NM 5,926 20,125
Series F Convertible Preferred:

Annual Dividend (1) NM NM 1.656
Shares Outstanding NM NM 7,300
Dividends Paid (2) NM NM 8,934
Series G Convertible Preferred (3):

Annual Dividend (1) NM NM NM
Shares Outstanding NM NM NM
Dividends Paid (2) NM NM NM
(1) Source: Footnote 11 in the 2012 10K

(2) Amounts paid may reflect partial payment of accrued dividends from the date of issuance.
(3) Issued on 4/9/13 with total shares outstanding of 10,000.



Payment Schedule: 2013 2014 2015 2016 2017 After (1)

Unsecured Term Loan - 2.17% 0 0 0 0 757,839 0
Unsecured Senior Notes - 4.96% (2) 33,000 0 442,000 25,000 50,000 1,188,221
Mortgage Loans 5.29% 195,012 217,585 75,493 191,979 108,395 3,912
Total Payments Before Unamortized Discounts & Premiums 228,012 217,585 517,493 216,979 916,234 1,192,133
(1) Adjusted for unamortized unsecured seniour notes discounts of $11,779 and unamortized mortgage premiums of $1,542.
(2) Includes $175,000 Prudential Facility
Note the company has a revolving credit facility with a balance of $723,729 and an average interest rate of 1.47% as of 12/31/12.



Description: Maturity Call Date Rating (1) Principal Price (2) Coupon Yld. Mat. Yld. Call
3.625% Notes Due 2022 10/1/22 NM BBB 300,000 100.637 3.625% 3.544% NM
5.25% Notes Due 2021 3/15/21 12/15/20 BBB 400,000 110.717 5.250% 3.642% NM
Total 1,575,000 3.759%
(1) Standard & Poors credit rating obtained from Bloomberg on 4/1/13.
(2) Source: Bloomberg accessed on 4/1/13.

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Front valuation page

Un-levered firm value

Total firm value 13,772,895

Total debt in 2012

Equity Value 9,550,611 Firm value- net debt

Share price 70.77

Enterprise value tax rate net debt un-levered value

Contractual value Non-contractual value Contractual value % Non-contractual %

beta equity 1.015

Unlevered return ra 6.82%

Required funding 1,090,005.43 1,667,783.97

Target D/V 0.30 0.30

Cumulative net debt balance

2015 2016 2017

1,179,447.58 1,359,380.26 114,868.36

1,703,576.37 1,651,871.59 253,657.95

511,072.91 495,561.48 76,097.39

0.30 0.30 0.30

756,005.00 1,246,801.00 1,700,099.00

tgage premiums of $1,542.

st rate of 1.47% as of 12/31/12.

Debt pay-down schedule in 000's

Cash available to pay-down debt 2012 2013 2014 2015

Net income 270,002.92 322,938.80 378,581.96

Revolving credit facility

Unsecured term loans

Unsecured senior notes

Convertible debt (assumed forced conversion)

Debt Payments each year 228,012.00 483,985.00 517,493.00

Series E convertible Preferred 2010 2011 2012 2013

Series F convertible Preferred

Series G convertible Preferred

Series D convertible Preferred

2014 2015 2016 2017

1.75 1.75 1.75 1.75 1.75 = 7%*25

1.66 1.66 1.66 1.66 1.656 = 6.625%*25

1.47 1.47 1.47 1.47 1.47 = 5.875%*25

322,938.80 378,581.96 442,900.51 459,625.71

2013 2014 2015

Rent per SQFT

Total Occupied Rentable Area 2010 2011 2012

Total rental revenue

Contractual Revenue/total Revenue 0.651

PV of contractual FCF 2003088.2

136.51 140.27 144.13 148.09 152.16

2014 2015 2016 2017

2014 2015 2016 2017

2014 2015 2016 2017

Unlevered Firm Value PV FV

Total 11411680 4121233.9675 4121233.9675

Target D/V ratio 30.00% 45.00% 30.00%

Ending Debt Balance 3,423,504 1,854,555 1,236,370

Intermediate term tax shields 2013 2014 2015 2016

Sum Of ITS 377378.92029

1685825.5251 Terminal values interest tax shield

Future Lease Min lease payment 962,547 927,074

Assets: 2009 2010 2011 2012 2013 2014

857,358 778,161 722,725

2015 2016 2017

2014 2015 2016

WC 2009 2010 2011 2012 2013 2014

Total net investment