8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 27, 2007

DIGITAL REALTY TRUST, INC.

(Exact name of registrant as specified in its charter)

Maryland	1-32336	26-0081711
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

560 Mission Street, Suite 2900 San Francisco, California	94105
(Address of principal executive offices)	(Zip Code)

(415) 738-6500

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

The information in this Item 2.02 of this Current Report is also being furnished under Item 7.01—“Regulation FD Disclosure” of Form 8-K. Such information, including the exhibits attached hereto, is furnished pursuant to Item 2.02 and shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act regardless of any general incorporation language in such filing.

On February 27, 2007, we issued a press release announcing our financial results for the fourth quarter and full year ended December 31, 2006. The text of the press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein.

On February 27, 2007, we posted certain supplemental operating and financial data on our website located at www.digitalrealtytrust.com. That supplemental operating and financial data is attached hereto as Exhibit 99.2 and is incorporated by reference herein.

Item 7.01 Regulation FD Disclosure.

The information in this Item 7.01 of this Current Report is also being furnished under Item 2.02—“Results of Operations and Financial Condition” of Form 8-K. Such information, including the exhibits attached hereto, is furnished pursuant to Item 7.01 and shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that Section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act regardless of any general incorporation language in such filing.

On February 27, 2007, we issued a press release announcing our financial results for the fourth quarter and full year ended December 31, 2006. The text of the press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein.

On February 27, 2007, we posted certain supplemental operating and financial data on our website located at www.digitalrealtytrust.com. That supplemental operating and financial data is attached hereto as Exhibit 99.2 and is incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Press Release dated February 27, 2007.
99.2	Supplemental Operating and Financial Data posted February 27, 2007.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Digital Realty Trust, Inc.
By:	/s/ Joshua A. Mills
	Joshua A. Mills
	General Counsel and Assistant Secretary

Dated: February 27, 2007

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release dated February 27, 2007.
99.2	Supplemental Operating and Financial Data posted February 27, 2007.

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

For Additional Information:

A. William Stein	Pamela Matthews
Chief Financial Officer and	Investor/Analyst Information
Chief Investment Officer	Digital Realty Trust, Inc.
Digital Realty Trust, Inc.	(415) 738-6500
(415) 738-6500

DIGITAL REALTY TRUST, INC. REPORTS FULL YEAR AND FOURTH QUARTER 2006 RESULTS

Strong performance yields year-over-year growth in earnings and FFO per share

Highlights:

• Reported net income of $0.47 per diluted share for the year and $0.06 per diluted share for the fourth quarter

• Reported FFO of $1.63 per diluted share for the year and $0.48 per diluted share for the fourth quarter

• Acquired seventeen properties totaling $552.5 million during the year, including closing costs for European assets; acquired seven properties in the fourth quarter totaling $205.4 million, including closing costs on European assets; and subsequent to year-end 2006 acquired three properties totaling $73.8 million

• Commenced leases on approximately 455,000 square feet during the year at an average annualized GAAP rent of $68.00 per square foot and 113,500 square feet during the fourth quarter at an average annualized GAAP rent of $77.00 per square foot

• Signed leases for 411,000 square feet in the fourth quarter, of which approximately 310,000 square feet is scheduled to commence in 2007 at an average annualized GAAP rent of $36.50 per square foot

San Francisco, Calif. (February 27, 2007) – Digital Realty Trust, Inc. (NYSE: DLR), a leading owner and manager of corporate datacenters and Internet gateway facilities, today announced financial results for its full year and fourth quarter ended December 31, 2006. The Company reported operating revenue of $281.9 million for the year and $84.5 million in the fourth quarter of 2006. Net income for the year was $31.4 million and net income available to common shareholders was $17.6 million, or $0.47 per diluted share. Net income for the fourth quarter of 2006 was $6.4 million and net income available to common stockholders was $3.0 million, or $0.06 per diluted share.

560 MISSION STREET, SUITE 2900

SAN FRANCISCO, CA 94105

415-738-6500

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Funds from operations (“FFO”) was $104.2 million for the year, or $1.63 on a diluted per share and unit basis, up 19.0% from $1.37 per diluted share and unit for the full year 2005. FFO was $33.0 million in the fourth quarter, or $0.48 on a diluted per share and unit basis, up 17.1% from $0.41 per diluted share and unit in the previous quarter; and up 33.3% from $0.36 per diluted share and unit in the fourth quarter of 2005.

Richard Magnuson, Chairman of Digital Realty Trust said “Digital Realty Trust delivered an exceptionally strong performance in 2006. We exceeded our expectations for acquisitions with $552.5 million of acquired properties and met the high-end of our estimate for leasing datacenter space with 300,000 square feet of leases commenced. Fueled by favorable market conditions, including strong demand for highly improved datacenter space in our markets, rental rates experienced exceptional growth during the year. The average annualized GAAP rent for datacenter space was over $91.00 per square foot. These acquisition and leasing results contributed to our growth in FFO.”

Acquisition and Leasing Activity

During the fourth quarter of 2006 the Company acquired seven properties totaling $205.4 million, including closing costs for the European assets. On October 1, 2006 the Company acquired the datacenter operations of AboveNet, which consists of three properties: one fee simple interest property in Reston, Virginia and two leaseholds in New York City and Vienna, Virginia. On October 6, 2006 the Company acquired 2055 East Technology Circle in Tempe, Arizona. The property is a vacant 76,400 square foot, two-story office and warehouse facility that was added to the Company’s portfolio of space held for redevelopment. On November 1, 2006 the Company acquired a partial interest in 2001 Sixth Avenue in Seattle, Washington, the primary hub for Internet traffic for the Pacific Northwest. This 34-story building totals 389,000 square feet, including 185,000 square feet of technical space. On December 5, 2006 the Company expanded its footprint in Europe with the acquisition of 114 Rue Ambroise Croizat in Paris, France. This property includes a 122,000 square foot income-producing datacenter and over 200,000 square feet available for redevelopment. In addition, on December 20, 2006 the Company acquired a 120,000 square foot datacenter facility, Unit 9, Blanchardstown Corporate Park, located in Dublin, Ireland.

Subsequent to the end of the year, the Company acquired three datacenter facilities. On January 5, 2007 the Company acquired 21110 Ridgetop Circle, a vacant 135,000 square foot shell datacenter located in Sterling, Virginia. Upon closing, the Company signed a lease with a leading managed service provider for the entire building. On January 22, 2007 the Company acquired 3011 Lafayette Street, a vacant 90,800 square foot shell datacenter located in Santa Clara, California. This property will be added to the Company’s inventory of space held for redevelopment. On February 27, 2007, the Company acquired 44470 Chillum Place, a single story datacenter facility located in Ashburn, Virginia. The property totals 95,400 square feet, including 65,600 square feet of raised floor, and is 100% leased to a leading network service provider through 2019

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As of February 27, 2007, the Company’s portfolio comprised 63 properties consisting of 84 buildings totaling approximately 11.8 million rentable square feet, including 1.8 million square feet of space held for redevelopment. The portfolio is strategically located in 25 key technology markets throughout North America and Europe.

During the year, leases commenced on 300,000 square feet of datacenter space at an average annualized GAAP rent of over $91.00 per square foot, and over 155,000 square feet of non-technical space at an average annualized GAAP rental rate of $23.50 per square foot.

For the quarter ended December 31, 2006, leases commenced on 79,000 square feet of datacenter space at an average annualized GAAP rent of approximately $91.00 per square foot and 34,500 square feet of non-technical space at an average annualized GAAP rent of over $46.00 per square foot. The datacenter space leased during the quarter includes 22,000 square feet of redevelopment space at an average annualized GAAP rent of approximately $25.00 per square foot. Excluding space held for redevelopment, occupancy across Digital Realty’s property portfolio was 95.0% at December 31, 2006. Of the 411,000 square feet of new leases signed during the fourth quarter, more than 302,000 square feet of datacenter space and 7,700 square feet of non-technical space will commence in 2007.

“2006 was a great year for Digital Realty Trust and we are continuing to see strong demand from national and international corporate users for datacenter space that can meet today’s power and cooling requirements. Important trends driving this demand include increased regulatory and legislative requirements for business continuity and record retention, disaster recovery initiatives along with significant growth in online advertising and e-commerce spending. We are well-positioned to meet this demand through our redevelopment program, acquisition pipeline and leasing momentum. We currently have construction projects underway in eleven key technology markets throughout the U.S. and Europe that will add over 500,000 rentable square feet of build-to-suit and Turn-Key Datacenter™ space. We have expanded our presence in Europe with the addition of the Paris property, a second operating datacenter facility in Dublin and the development of a new 120,000 datacenter at the site of our first Dublin property. We are also expanding our presence in select U.S. markets including Northern Virginia, and now own five properties there totaling approximately 338,000 square feet and one property under contract that will more than double our square footage in this important market for information technology and Internet communications,” said Michael Foust, Chief Executive Officer of Digital Realty Trust. “The volume of

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leasing activity and strong growth in rents are the results of our proven ability to acquire and deliver highly improved datacenter space for national and international corporate users that depend on our reliable, cost effective solutions for their datacenter requirements.”

Balance Sheet Update

Total assets grew to approximately $2.2 billion at December 31, 2006, from $1.5 billion at December 31, 2005. Total debt at December 31, 2006 was approximately $1.1 billion compared to $749.1 million at December 31, 2005. Stockholders’ equity was $709.8 million, up from $386.5 million at December 31, 2005, primarily due to the redemption of operating units for common stock and two follow-on public offerings, which generated $228.3 million in net proceeds that were used to reduce borrowings under the Company’s credit facility.

In addition to increasing commitments under its credit facility in the third quarter of 2006 from $350 million to $500 million, during the fourth quarter the Company amended the financial covenants to enhance the Company’s financial flexibility and include redevelopment assets in the borrowing base.

The Company completed mortgage financings during the quarter on one property in Northern California and two properties in Europe. On October 24, 2006 the Company completed the financing of 1100 Space Park Drive in Santa Clara, California. The new loan for $55 million has a 10-year maturity with no principal amortization for three years, and a fixed rate of 5.89%. On December 5, 2006 the Company completed the secured financing of 114 Rue Ambroise Croizat in Paris, France. The new loan for 32.8 million Euros (equal to $43.3 million at December 31, 2006) closed simultaneously with the acquisition and has a five year maturity with a swapped fixed rate of 5.13%. On December 20, 2006 the Company completed the secured financing of the Blanchardstown Corporate Park property in Dublin, Ireland. The new loan for 28.2 million Euros (equal to $37.2 million at December 31, 2006) closed simultaneously with the acquisition and has a 5-year maturity at a swapped fixed rate of 5.35%.

Subsequent to year-end on January 31, 2007, the Company completed the financing of 2045 & 2055 Lafayette Street in Santa Clara, California. This $68.0 million loan has a 10-year maturity with no principal amortization for two years and a fixed rate of 5.93%. On February 2, 2007 the Company completed the financing of 150 South First Street in San Jose, California. This $53.3 million loan has a 10-year maturity with no principal amortization for two years and a fixed rate of 6.30%.

“Our strong performance in 2006 was facilitated by our ability to successfully access debt and equity markets. We raised approximately $900 million during the year from our increased credit facility, mortgage financings and refinancings, as well as registered debt and equity offerings,” said A. William Stein, Chief Financial Officer and

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Chief Investment Officer of Digital Realty Trust. “We expect that our focus on a strong balance sheet and financial flexibility will continue to serve the Company as we selectively deploy capital to support our acquisition, leasing and redevelopment investment activities in 2007.”

Management Note Regarding FFO Presentation

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

Investor Conference Call Details

Digital Realty Trust will host a conference call to discuss its 2006 full year and fourth quarter results tomorrow, Wednesday, February 28, 2007 at 1:00 p.m. ET/10:00 a.m. PT. To participate in the live call, investors are invited to dial 800-218-0204 (for domestic callers) or 303-205-0033 (for international callers) at least five minutes prior to start time. A live webcast of the call will be available via the Investor Relations section of Digital Realty Trust’s website at www.digitalrealtytrust.com. Please go to the website at least 15 minutes early to register and download and install any necessary audio software. If you are unable to listen to the live conference call, a telephone and webcast replay will be available after 1:00 PM PST on Wednesday, February 28, 2007 until 12:59 PM PST on Wednesday, March 7, 2007. The telephone replay can be accessed by dialing 1-800-405-2236 (for domestic callers) or 303-590-3000 (for international callers) and using reservation code 11082678#. A replay of the webcast will also be archived on Digital Realty Trust’s website for 30 days following the call.

About Digital Realty Trust, Inc.

Digital Realty Trust, Inc. owns, acquires, repositions and manages technology-related real estate. Digital Realty Trust’s 63 properties contain applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise data center tenants. Comprising approximately 11.8 million rentable square feet, including 1.8 million square feet of space held for redevelopment, Digital Realty Trust’s portfolio is located in 25 markets throughout North America and Europe. For additional information, please visit the Digital Realty Trust’s website at www.digitalrealtytrust.com.

Safe Harbor Statement

This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially.

Page 5

Such forward looking statements include statements related to the Company’s expected future financial and other results, leasing demand and expectation that it will achieve its performance objectives. These risks and uncertainties include adverse economic or real estate developments in the Company’s markets or the technology industry; general economic conditions; defaults on or non-renewal of leases by tenants; increased interest rates and operating costs; inability to manage domestic and international growth effectively; failure to obtain necessary outside financing; decreased rental rates or increased vacancy rates; difficulties in identifying properties to acquire and completing acquisitions at acceptable return levels; failure to successfully operate acquired properties and operations, failure of acquired properties to perform as expected; failure to successfully redevelop properties acquired for such purposes; failure to maintain the Company’s status as a REIT; environmental uncertainties and risks related to natural disasters; financial market fluctuations; changes in foreign currency exchange rates; risks of operating in foreign markets; and changes in real estate and zoning laws and increases in real property tax rates. For a further list and description of such risks and uncertainties, see the reports and other filings by the Company with the United States Securities and Exchange Commission, including the Company’s annual report on Form 10-K for the year ended December 31, 2005 and subsequent quarterly reports on form 10-Q. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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Digital Realty Trust, Inc.

Consolidated Statements of Operations

(in thousands, except share data)

(unaudited)

	Three Months Ended						Year Ended
	December 31, 2006			December 31, 2005			December 31, 2006			December 31, 2005
Operating Revenues:
Rental	$	70,333		$	47,504		$	229,742		$	158,428
Tenant reimbursements		13,984			11,647			51,796			37,174
Other		197			1,432			365			5,829
Total operating revenues		84,514			60,583			281,903			201,431
Operating Expenses:
Rental property operating and maintenance		20,250			13,366			61,052			41,030
Property taxes		6,879			6,737			28,052			20,992
Insurance		846			886			3,757			2,728
Depreciation and amortization		28,173			18,040			89,936			59,616
General and administrative		6,535			4,425			20,441			12,615
Other		173			47			1,111			1,635
Total operating expenses		62,856			43,501			204,349			138,616
Operating income		21,658			17,082			77,554			62,815
Other Income (Expenses):
Equity in earnings of unconsolidated joint venture		177			—			177			—
Interest and other income		419			870			1,275			1,274
Interest expense		(14,569	)		(10,643	)		(51,924	)		(37,724	)
Loss from early extinguishment of debt		(6	)		(896	)		(527	)		(1,021	)
Income from continuing operations before minority interests		7,679			6,413			26,555			25,344
Minority interests in continuing operations of operating partnership		(1,270	)		(1,592	)		(5,383	)		(8,818	)
Income from continuing operations		6,409			4,821			21,172			16,526
Income (loss) from discontinued operations before gain on sale of assets and minority interests		(60	)		(474	)		(348	)		(987	)
Gain on sale of assets		80			—			18,096			—
Minority interests attributable to discontinued operations		(6	)		255			(7,528	)		562
Income (loss) from discontinued operations (1)		14			(219	)		10,220			(425	)
Net income		6,423			4,602			31,392			16,101
Preferred stock dividends		(3,445	)		(3,445	)		(13,780	)		(10,014	)
Net income available to common stockholders	$	2,978		$	1,157		$	17,612		$	6,087
Net income per share available to common stockholders:
Basic	$	0.06		$	0.04		$	0.49		$	0.25
Diluted	$	0.06		$	0.04		$	0.47		$	0.25
Weighted average shares outstanding:
Basic		47,332,515			27,314,190			36,134,983			23,986,288
Diluted		48,940,617			27,656,496			37,442,192			24,221,732

(1) During the quarter ended June 30, 2006 we classified our property located at 7979 East Tufts Avenue as available for sale and we completed this property sale in July 2006. We have presented all activity for this property in Income (loss) from discontinued operations for all periods presented above. This will cause individual line items above to differ from previously published information but does not effect net income available to common stockholders.

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Digital Realty Trust

Consolidated Balance Sheets

(in thousands)

	December 31, 2006			December 31, 2005
ASSETS
Investments in real estate
Properties:
Land	$	228,728		$	191,961
Acquired ground leases		3,028			1,477
Buildings and improvements		1,415,236			941,115
Tenant improvements		172,334			123,957
Investments in properties		1,819,326			1,258,510
Accumulated depreciation and amortization		(112,479	)		(64,404	)
Net investments in properties		1,706,847			1,194,106
Investment in unconsolidated joint venture		29,955			—
Net investments in real estate		1,736,802			1,194,106
Cash and cash equivalents		22,261			10,930
Accounts and other receivables, net		31,293			7,587
Deferred rent		40,225			25,094
Acquired above market leases, net		47,292			48,237
Acquired in place lease value and deferred leasing costs, net		248,751			201,141
Deferred financing costs, net		17,500			7,659
Restricted cash		28,144			22,123
Other assets		13,951			12,293
Total Assets	$	2,186,219		$	1,529,170
LIABILITIES AND STOCKHOLDERS’ EQUITY
Notes payable under line of credit	$	145,452		$	181,000
Mortgage loans		804,686			568,067
Exchangeable senior debentures		172,500			—
Accounts payable and other accrued liabilities		88,698			36,869
Accrued dividends and distributions		19,386			15,639
Acquired below market leases, net		87,487			67,177
Security deposits and prepaid rents		19,822			11,476
Total Liabilities		1,338,031			880,228
Minority interests in consolidated joint venture		—			206
Minority interests in operating partnership		138,416			262,239
Stockholders’ Equity		709,772			386,497
Total Liabilities and Stockholders’ Equity	$	2,186,219		$	1,529,170

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Digital Realty Trust, Inc.

Reconciliation of Net Income Available to Common Stockholders to Funds From Operations (FFO)

(in thousands, except share and per share and unit data)

(unaudited)

	Three Months Ended						Year Ended
	December 31, 2006			December 31, 2005			December 31, 2006			December 31, 2005
Net income available to common stockholders	$	2,978		$	1,157		$	17,612		$	6,087
Adjustments:
Minority interests in operating partnership including discontinued operations		1,276			1,337			12,911			8,256
Real estate related depreciation and amortization (1)		28,055			18,781			90,932			62,171
Real estate related depreciation and amortization related to investment in unconsolidated joint venture		796			—			796			—
Gain on sale of assets		(80	)		—			(18,096	)		—
FFO	$	33,025		$	21,275		$	104,155		$	76,514
Basic FFO per share and unit	$	0.49		$	0.36		$	1.66		$	1.38
Diluted FFO per share and unit	$	0.48		$	0.36		$	1.63		$	1.37
Total common stock and units outstanding
Basic		67,605,128			58,905,937			62,562,820			55,525,442
Diluted		69,213,230			59,248,243			63,870,028			55,760,886
(1) Real estate depreciation and amortization was computed as follows:
Depreciation and amortization per income statement		28,173			18,040			89,936			59,616
Depreciation and amortization of discontinued operations at 7979 East Tufts Avenue		—			764			1,507			2,616
Non real estate depreciation		(118	)		(23	)		(511	)		(61	)
	$	28,055		$	18,781		$	90,932		$	62,171

Note Regarding Funds From Operations

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

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EX-99.2

Exhibit 99.2

1

DIGITAL REALTY TRUST, INC.

Fourth Quarter 2006

	PAGE
Corporate Data
Corporate Information	4
Ownership Structure	5
Consolidated Financial Information
Key Financial Data	6
Consolidated Balance Sheets	7
Consolidated Quarterly Statements of Operations	8
Funds From Operations and Adjusted Funds From Operations	9
Reconciliation of Earnings Before Interest, Taxes and Depreciation and Amortization and Financial Ratios	10
Net Operating Income (NOI) and Run-rate NOI for the three months ended September 30, 2006	11
Same Store and New Properties Consolidated Quarterly Statements of Operations	12
Same Store Operating Trend summary	13
Debt Summary	14
Debt Maturities	15
Portfolio Data
Portfolio Summary	16
Properties Acquired	17
Occupancy Analysis	18
Major Tenants	20
Lease Expirations & Lease Distribution	21
Leasing Activity	22
Tenant Improvements and Leasing Commissions	23
Historical Capital Expenditures	24
Redevelopment	25
Definitions
Management Statements on Non-GAAP Supplemental Measures	26

2

DIGITAL REALTY TRUST, INC.

Fourth Quarter 2006

Statement Regarding Forward-Looking Statements

This supplemental package contains forward-looking statements within the meaning of the federal securities laws, including information related to run rate net operating income. Such statements are based on management’s beliefs and assumptions made based on information currently available to management. Such statements are subject to risks, uncertainties and assumptions and are not guarantees of future performance and may be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Some of the risks and uncertainties that may cause our actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements include, among others, the following:

• adverse economic or real estate developments in our markets or technology related real estate;

• general and local economic conditions;

• defaults on or non-renewal of leases by tenants;

• increased interest rates and operating costs;

• our inability to manage growth effectively;

• our failure to obtain necessary outside financing;

• decreased rental rates or increased vacancy rates;

• difficulties in identifying properties to acquire and completing acquisitions;

• our failure to successfully operate acquired properties and operations;

• our failure to successfully redevelop properties acquired for that purpose;

• our failure to maintain our status as a REIT;

• possible adverse changes to tax laws, environmental uncertainties and risks related to natural disasters;

• financial market fluctuations;

• changes in foreign currency exchange rates;

• and changes in real estate and zoning laws and increases in real property tax rates.

The risks included here are not exhaustive, and additional factors could adversely affect our business and financial performance. We discussed a number of additional material risks in our annual report on Form 10-K for the year ended December 31, 2005 and other filings with the Securities and Exchange Commission. Those risks continue to be relevant to our performance and financial condition. Moreover, we operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We expressly disclaim any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise.

3

DIGITAL REALTY TRUST, INC.

Fourth Quarter 2006

Corporate Information

Corporate Profile

Digital Realty Trust, Inc. owns, acquires, repositions and manages technology-related real estate. The Company’s 59 properties, excluding one property held as an investment in an unconsolidated joint venture, contain applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise data center tenants. Comprising approximately 11.0 million net rentable square feet, including space held for redevelopment, Digital Realty Trust’s property portfolio is located throughout North America and Europe. For additional information, please visit the company’s website at www.digitalrealtytrust.com.

Corporate Headquarters

560 Mission Street, Suite 2900

San Francisco, California 94105

Telephone: (415) 738-6500

Facsimile: (415) 738-6501

Web site: www.digitalrealtytrust.com

Senior Management

Richard A. Magnuson: Executive Chairman

Michael F. Foust: Chief Executive Officer

A. William Stein: Chief Financial Officer and Chief Investment Officer

Scott E. Peterson: Senior Vice President, Acquisitions

Christopher J. Crosby: Senior Vice President, Sales and Technical Services

James R. Trout: Senior Vice President of Portfolio and Technical Operations

Investor Relations

To request an Investor Relations package or be added to our e-mail distribution list, please visit our website:

www.digitalrealtytrust.com (Proceed to Information Request in the Investor Relations section)

Analyst Coverage

Credit Suisse	Merrill Lynch	KeyBanc Capital Markets	Raymond James
John Stewart	Steve Sakwa	Jordan Sadler	Paul D. Puryear
(212) 538-3183	(212) 449-0335	(917) 368-2280	(727) 567-2253
JMP Securities	RBC Capital Markets	Citigroup
William Marks	Srikanth Nagarajan	Jonathan Litt
(415) 835-8944	(212) 428-2360	(212) 816-0231

Stock Listing Information

The stock of Digital Realty Trust, Inc. is traded primarily on the New York Stock Exchange under the following symbols:

Common Stock:	DLR
Series A Preferred Stock:	DLRPA
Series B Preferred Stock:	DLRPB

Note that symbols may vary by stock quote provider.

Common Stock Price Performance

The following summarizes recent activity of Digital Realty’s common stock (DLR):

	4th Quarter 2006			3rd Quarter 2006			2nd Quarter 2006			1st Quarter 2006			4th Quarter 2005			3rd Quarter 2005			2nd Quarter 2005			1st Quarter 2005
High Price *	$	37.31		$	31.88		$	29.54		$	28.59		$	24.70		$	19.97		$	17.49		$	14.81
Low Price *	$	30.73		$	24.58		$	22.66		$	22.29		$	17.73		$	16.80		$	13.67		$	12.50
Closing Price, end of quarter *	$	34.23		$	31.32		$	24.69		$	28.17		$	22.63		$	18.00		$	17.38		$	14.37
Average daily trading volume *		321,710			365,056			224,662			194,179			134,046			260,942			94,248			94,884
Indicated dividend per common share **	$	1.145		$	1.06		$	1.06		$	1.06		$	1.06		$	0.98		$	0.98		$	0.98
Closing dividend yield, end of quarter		3.3	%		3.4	%		4.3	%		3.8	%		4.7	%		5.4	%		5.6	%		6.8	%
Closing shares and units outstanding end of quarter		67,913,155			63,110,530			63,052,653			59,052,653			59,016,949			58,826,122			52,942,731			52,942,731
Closing market value of shares and units outstanding (thousands), end of quarter	$	2,324,667		$	1,976,622		$	1,556,770		$	1,663,513		$	1,335,554		$	1,058,870		$	920,145		$	760,787

* New York Stock Exchange trades only

** On an annual basis

This Supplemental Operating and Financial Data package supplements the information provided in our quarterly and annual reports filed with the Securities and Exchange Commission. Additional information about us and our properties is also available at our website www.digitalrealtytrust.com.

4

DIGITAL REALTY TRUST, INC.

Fourth Quarter 2006

Ownership Structure

As of December 31, 2006

Partner	# of Units (2)	% Ownership
Digital Realty Trust, Inc.	54,257,691	79.9	%
Global Innovation Partners, LLC (3)	5,000,677	7.4	%
Cambay Tele.com, LLC (4)	5,523,124	8.1	%
Wave Exchange, LLC (4)	32,722	0.0	%
Directors, Executive Officers and Others	1,630,142	2.4	%
Total	67,913,155	100.0	%

(1) Reflects limited partnership interests held by our officers and directors in the form of vested long-term incentive units and excludes shares issuable upon the redemption of Class C units which have not yet vested and all unexercised common stock options.

(2) The total number of units includes 54,257,691 shares of common stock and 13,655,464 common units and excludes Class C units and shares issuable upon the redemption of Class C units, which have not yet vested, and all unexercised common stock options.

(3) Includes units held by Global Innovation Manager and Global Innovation Contributor, funds related to Global Innovation Partners, LLC.

(4) These third-party contributors received the units (along with cash and the operating partnership assuming debt) in exchange for their interests in 200 Paul Avenue 1-4, 1100 Space Park Drive, the eXchange colocation business and other specified assets and liabilities. Includes 895,689 common units held by the members of Cambay Tele.com, LLC.

5

DIGITAL REALTY TRUST, INC.

Fourth Quarter 2006

Key Quarterly Financial Data

(Dollars in thousands, except per share data)

	For the three months ended or as of
	31-Dec-06			30-Sep-06			30-Jun-06			31-Mar-06			31-Dec-05			30-Sep-05			30-Jun-05			31-Mar-05
Shares and units at end of quarter
Common shares outstanding		54,257,691			36,155,367			36,104,961			31,429,296			27,363,408			27,304,691			21,421,300			21,421,300
Common units outstanding		13,655,464			26,955,163			26,947,692			27,623,357			31,653,541			31,521,431			31,521,431			31,521,431
Total shares and Operating Partnership units		67,913,155			63,110,530			63,052,653			59,052,653			59,016,949			58,826,122			52,942,731			52,942,731
Market Capitalization
Market value of common equity (1)	$	2,324,667		$	1,976,622		$	1,556,770		$	1,663,513		$	1,335,554		$	1,058,870		$	920,145		$	760,787
Stated value of preferred equity		166,750			166,750			166,750			166,750			166,750			166,750			103,500			103,500
Total debt at balance sheet carrying value (2)		1,122,638			1,074,757			820,501			813,655			749,067			686,909			765,687			515,701
Total market capitalization including debt (2)	$	3,614,055		$	3,218,129		$	2,544,021		$	2,643,918		$	2,251,371		$	1,912,529		$	1,789,332		$	1,379,988
Total debt/Total market capitalization including debt		31.1	%		33.4	%		32.3	%		30.8	%		33.3	%		35.9	%		42.8	%		37.4	%
Selected Balance Sheet Data
Investments in real estate (before depreciation) (3)		1,849,281			1,626,979			1,399,752			1,289,226			1,258,510			1,173,332			1,099,699			889,803
Total assets		2,186,219			1,971,762			1,713,857			1,574,041			1,529,170			1,454,222			1,368,256			1,099,727
Total liabilities		1,338,031			1,247,351			990,422			935,039			880,228			792,538			856,617			579,393
Selected Operating Data
Total operating revenues from continuing operations (4)		84,514			73,189			64,708			59,492			60,583			54,822			48,059			37,967
Total operating expenses from continuing operations (4)		62,856			53,997			46,117			41,379			43,501			38,396			31,540			25,179
Interest expense from continuing operations (4)		14,569			14,486			11,830			11,039			10,643			10,373			8,938			7,770
Net income		6,423			14,787			5,095			5,087			4,602			4,425			4,335			2,739
Net income available to common stockholders		2,978			11,342			1,650			1,642			1,157			1,326			2,136			1,468
Financial Ratios
EBITDA (5)		45,720			50,614			34,106			31,286			30,949			29,007			25,753			21,732
Adjusted EBITDA (6)		50,441			62,523			38,891			36,562			35,731			33,730			31,091			25,159
Cash interest expense (7)		12,477			12,860			13,296			10,244			9,607			9,947			8,086			7,416
Fixed charges (8)		17,540			17,820			17,863			15,113			14,521			15,019			12,266			10,525
Debt service coverage ratio (9)		4.0	x		4.9	x		2.9	x		3.6	x		3.7	x		3.4	x		3.8	x		3.4	x
Fixed charge coverage ratio (10)		2.9	x		3.5	x		2.2	x		2.4	x		2.5	x		2.2	x		2.5	x		2.4	x
Profitability measures
Net income per common share - basic	$	0.06		$	0.31		$	0.05		$	0.06		$	0.04		$	0.05		$	0.10		$	0.07
Net income per common share - diluted	$	0.06		$	0.30		$	0.05		$	0.06		$	0.04		$	0.05		$	0.10		$	0.07
Diluted Funds From Operations (FFO) per share (11)	$	0.48		$	0.41		$	0.38		$	0.36		$	0.36		$	0.35		$	0.37		$	0.30
Diluted Adjusted Funds From Operations (AFFO) per share (12)	$	0.29		$	0.30		$	0.27		$	0.28		$	0.26		$	0.26		$	0.31		$	0.24
Dividends per share and common unit	$	0.29		$	0.27		$	0.27		$	0.27		$	0.27		$	0.24		$	0.24		$	0.24
Diluted FFO payout ratio (13)		59.6	%		65.9	%		71.1	%		75.0	%		73.8	%		70.1	%		65.8	%		82.0	%
Diluted AFFO payout ratio (14)		98.7	%		90.0	%		100.0	%		96.4	%		101.5	%		93.6	%		79.9	%		100.0	%
Portfolio Statistics (15)
Buildings		79			71			66			55			53			47			42			35
Properties		59			53			49			45			43			37			32			25
Net rentable square feet, excluding redevelopment space		9,381,860			9,111,904			8,766,173			7,769,773			7,685,028			7,498,576			7,424,926			5,937,042
Square feet held for redevelopment (16)		1,646,255			1,248,326			1,156,437			1,196,538			1,146,538			731,663			707,920			107,563
Occupancy at end of quarter (17)		95.0	%		94.7	%		94.6	%		93.1	%		94.2	%		93.3	%		92.7	%		88.2	%
Weighted average remaining lease term (years) (18)		6.9			7.2			7.0			7.4			7.5			7.7			8.2			7.3
Same store occupancy at end of quarter (19)		97.0	%		96.3	%		96.4	%		96.3	%		94.9	%		93.7	%		93.8	%		N/A

(1) The market value of common equity is based on the closing stock price at the end of the quarter and assumes 100% redemption of the limited partnership units in the operating partnership for shares of our common stock. Excludes shares issuable with respect to stock options that have been granted but have not yet been exercised, and also excludes shares issuable upon the redemption of profits interests units and Class C units which have not yet vested and shares of our common stock issuable upon redemption thereof.

(2) The amount for June 30, 2006 excludes the outstanding principal for a loan related to 7979 East Tufts Avenue of $26.0 million. We classified this property as held for sale at June 30, 2006. We completed its sale on July 12, 2006 and eliminated our liability for the $26.0 million loan.

(3) The June 30, 2006 amount excludes assets held for sale at East Tufts Avenue of $37.9 million.

(4) Excludes operations at 7979 East Tufts Avenue, a property classified as held for sale at June 30, 2006 and sold on July 12, 2006 for all periods presented.

(5) EBITDA is calculated as earnings before interest, taxes, depreciation and amortization. For a discussion of EBITDA, see page 26. For a reconciliation of net income available to common stockholders to EBITDA, see page 10.

(6) Adjusted EBITDA is EBITDA adjusted for preferred dividends and minority interests. For a discussion of Adjusted EBITDA, see page 26. For a reconciliation of net income available to common stockholders to Adjusted EBITDA, see page 10.

(7) Cash interest expense is interest expense per our statement of operations (including interest expense on discontinued operations) adjusted for noncash interest expense and includes capitalized interest. For a reconciliation of GAAP interest expense to cash interest expense see page 9.

(8) Fixed charges consist of cash interest expense, scheduled debt principal payments and preferred dividends.

(9) Debt service coverage ratio is Adjusted EBITDA divided by cash interest expense. Ignoring the effect of the gain on sale of 7979 East Tufts Avenue, debt service coverage ratio was 3.5 for the three months ended September 30, 2006.

(10) Fixed charge coverage ratio is Adjusted EBITDA divided by fixed charges. Ignoring the effect of the gain on sale of 7979 East Tufts Avenue, fixed charge coverage ratio was 2.5 for the three months ended September 30, 2006.

(11) For a definition and discussion of FFO see page 26. For a reconciliation of net income available to common stockholders to FFO, see page 9.

(12) For a definition and discussion of AFFO, see page 26. For a reconciliation of FFO to AFFO, see page 9.

(13) Diluted FFO payout ratio is dividend declared per common share and unit divided by diluted FFO per share and unit.

(14) Diluted AFFO payout ratio is dividend declared per common share and unit divided by diluted AFFO per share and unit.

(15) Portfolio statistics exclude operations at 7979 East Tufts Avenue, a property classified as held for sale at June 30, 2006 and sold on July 12, 2006 for all periods presented.

(16) Redevelopment space requires significant capital investment in order to develop data center facilities that are ready for use. Most often this is shell space. However, in certain circumstances this may include partially built datacenter space that was not completed by previous ownership and requires a large capital investment in order to build out the space.

(17) Occupancy at end of quarter excludes space held for redevelopment. We completed a review of space held for development in the quarter ended September 30, 2005 and have not restated any occupancy statistics for March 31, 2005 and earlier periods. This will cause occupancy statistics for March 31, 2005 to not be comparable to occupancy statistics for later periods.

(18) Average remaining lease term excludes renewal options, weighted by net rentable square feet.

(19) Same store properties were acquired before December 31, 2004. We have not presented March 31, 2005 same store occupancy as it is not comparable to later periods due to a review of space held for redevelopment in the third quarter of 2005.

6

DIGITAL REALTY TRUST, INC.

Fourth Quarter 2006

Consolidated Balance Sheets

(Dollars in thousands, except share data)

	December 31, 2006			December 31, 2005
	(unaudited)
ASSETS
Investments in real estate
Land	$	228,728		$	191,961
Acquired ground leases		3,028			1,477
Buildings and improvements		1,415,236			941,115
Tenant improvements		172,334			123,957
Investments in real estate		1,819,326			1,258,510
Accumulated depreciation and amortization		(112,479	)		(64,404	)
Net investments in properties		1,706,847			1,194,106
Investment in unconsolidated joint venture		29,955			—
Net investments in real estate		1,736,802			1,194,106
Cash and cash equivalents		22,261			10,930
Accounts and other receivables, net		31,293			7,587
Deferred rent		40,225			25,094
Acquired above market leases, net		47,292			48,237
Acquired in place lease value and deferred leasing costs, net		248,751			201,141
Deferred financing costs, net		17,500			7,659
Restricted cash		28,144			22,123
Other assets		13,951			12,293
Total Assets	$	2,186,219		$	1,529,170
LIABILITIES AND STOCKHOLDERS’ EQUITY
Notes payable under line of credit	$	145,452		$	181,000
Mortgage loans		804,686			568,067
Exchangeable senior debentures		172,500			—
Accounts payable and other accrued liabilities		88,698			36,869
Accrued dividends and distributions		19,386			15,639
Acquired below market leases, net		87,487			67,177
Security deposits and prepaid rents		19,822			11,476
Total Liabilities		1,338,031			880,228
Commitments and contingencies		—			—
Minority interests in consolidated joint venture		—			206
Minority interests in operating partnership		138,416			262,239
Stockholders’ equity:
Preferred Stock: $0.01 par value, 20,000,000 authorized:
Series A Cumulative Redeemable Preferred Stock, 8.50%, $103,500,000 liquidation preference ($25.00 per share), 4,140,000 issued and outstanding		99,297			99,297
Series B Cumulative Redeemable Preferred Stock, 7.875%, $63,250,000 liquidation preference ($25.00 per share), 2,530,000 issued and outstanding		60,502			60,502
Common Stock; $0.01 par value: 100,000,000 authorized, 54,257,691 and 27,363,408 shares issued and outstanding as of December 31, 2006 and December 31, 2005		542			274
Additional paid-in capital		597,334			252,562
Dividends in excess of earnings		(52,093	)		(27,782	)
Accumulated other comprehensive income, net		4,190			1,644
Total Stockholders’ Equity		709,772			386,497
Total Liabilities and Stockholders’ Equity	$	2,186,219		$	1,529,170

7

DIGITAL REALTY TRUST, INC.

Fourth Quarter 2006

Consolidated Quarterly Statements of Operations

(unaudited and in thousands, except share data)

	Three Months Ended
	31-Dec-06			30-Sep-06			30-Jun-06			31-Mar-06			31-Dec-05			30-Sep-05			30-Jun-05			31-Mar-05
Rental	$	70,333		$	59,552		$	52,033		$	47,824		$	47,504		$	43,587		$	36,148		$	31,189
Tenant reimbursements		13,984			13,637			12,675			11,500			11,647			10,970			8,079			6,478
Other		197			—			—			168			1,432			265			3,832			300
Total operating revenues		84,514			73,189			64,708			59,492			60,583			54,822			48,059			37,967
Rental property operating and maintenance		20,250			15,474			13,618			11,710			13,366			11,854			9,166			6,644
Property taxes		6,879			7,238			7,096			6,839			6,737			6,052			4,721			3,482
Insurance		846			953			1,068			890			886			751			511			580
Depreciation and amortization		28,173			24,739			19,511			17,513			18,040			16,309			13,728			11,539
General and administrative		6,535			4,986			4,674			4,246			4,425			3,324			2,453			2,413
Other		173			607			150			181			47			106			961			521
Total operating expenses		62,856			53,997			46,117			41,379			43,501			38,396			31,540			25,179
Operating income		21,658			19,192			18,591			18,113			17,082			16,426			16,519			12,788
Equity in earnings of unconsolidated joint venture		177			—			—			—			—			—			—			—
Interest and other income		419			365			262			229			870			165			110			129
Interest expense		(14,569	)		(14,486	)		(11,830	)		(11,039	)		(10,643	)		(10,373	)		(8,938	)		(7,770	)
Loss from early extinguishment of debt		(6	)		(39	)		(425	)		(57	)		(896	)		—			—			(125	)
Income from continuing operations before minority interests		7,679			5,032			6,598			7,246			6,413			6,218			7,691			5,022
Minority interests in continuing operations of operating partnership		(1,270	)		(678	)		(1,413	)		(2,022	)		(1,592	)		(1,719	)		(3,272	)		(2,235	)
Income from continuing operations		6,409			4,354			5,185			5,224			4,821			4,499			4,419			2,787
Income (loss) from discontinued operations before gain on sale of assets and minority interests		(60	)		203			(163	)		(328	)		(474	)		(169	)		(217	)		(127	)
Gain on sale of assets		80			18,016			—			—			—			—			—			—
Minority interests attributable to discontinued operations		(6	)		(7,786	)		73			191			255			95			133			79
Income (loss) from discontinued operations (1)		14			10,433			(90	)		(137	)		(219	)		(74	)		(84	)		(48	)
Net income		6,423			14,787			5,095			5,087			4,602			4,425			4,335			2,739
Preferred stock dividends		(3,445	)		(3,445	)		(3,445	)		(3,445	)		(3,445	)		(3,099	)		(2,199	)		(1,271	)
Net income available to common stockholders	$	2,978		$	11,342		$	1,650		$	1,642		$	1,157		$	1,326		$	2,136		$	1,468
Net income per share available to common stockholders - basic	$	0.06		$	0.31		$	0.05		$	0.06		$	0.04		$	0.05		$	0.10		$	0.07
Net income per share available to common stockholders - diluted	$	0.06		$	0.30		$	0.05		$	0.06		$	0.04		$	0.05		$	0.10		$	0.07
Weighted-average shares outstanding - basic		47,332,515			36,114,253			33,372,240			27,503,248			27,314,190			25,704,721			21,421,300			21,421,300
Weighted-average shares outstanding - diluted		48,940,617			37,446,894			33,872,344			28,354,597			27,656,496			26,004,324			21,584,913			21,535,485
Weighted-average fully diluted shares and units		69,213,230			64,397,265			60,959,350			59,873,798			59,248,243			57,525,755			53,106,344			53,056,916

(1) During the quarter ended June 30, 2006 we classified our property located at 7979 East Tufts Avenue as available for sale and we completed this property sale in July 2006. We have presented all activity for this property in Income (loss) from discontinued operations for all periods presented above. This will cause individual line items above to differ from previous supplemental information but does not effect net income available to common stockholders.

8

DIGITAL REALTY TRUST, INC.

Fourth Quarter 2006

Funds From Operations (FFO)

(unaudited and in thousands except per share data)

	Three Months Ended
	31-Dec-06			30-Sep-06			30-Jun-06			31-Mar-06			31-Dec-05			30-Sep-05			30-Jun-05			31-Mar-05
Reconciliation of net income available to common stockholders to FFO (Note):
Net income available to common stockholders	$	2,978		$	11,342		$	1,650		$	1,642		$	1,157		$	1,326		$	2,136		$	1,468
Adjustments:
Minority interests in operating partnership including discontinued operations		1,276			8,464			1,340			1,846			1,338			1,628			3,143			2,159
Real estate related depreciation and amortization (1)		28,055			24,454			20,238			18,185			18,781			16,929			14,318			12,143
Real estate related depreciation and amortization related to investment in unconsolidated joint venture		796			—			—			—			—			—			—			—
Gain on sale of assets		(80	)		(18,016	)		—			—			—			—			—			—
FFO available to common stockholders and unitholders	$	33,025		$	26,244		$	23,228		$	21,673		$	21,276		$	19,883		$	19,597		$	15,770
FFO per share:
Basic	$	0.49		$	0.42		$	0.38		$	0.37		$	0.36		$	0.35		$	0.37		$	0.30
Diluted	$	0.48		$	0.41		$	0.38		$	0.36		$	0.36		$	0.35		$	0.37		$	0.30
Weighted-average shares outstanding - basic		67,605			63,065			60,459			59,022			58,906			57,226			52,943			52,943
Weighted-average shares outstanding - diluted		69,213			64,397			60,959			59,874			59,248			57,526			53,106			53,057
(1) Real estate depreciation and amortization was computed as follows:
Depreciation and amortization per income statement	$	28,173		$	24,739		$	19,511		$	17,513		$	18,040		$	16,309		$	13,728		$	11,539
Depreciation and amortization of discontinued operations at 7979 East Tufts Avenue		—			—			764			743			764			648			600			604
Non real estate depreciation		(118	)		(285	)		(37	)		(71	)		(23	)		(28	)		(10	)		—
	$	28,055		$	24,454		$	20,238		$	18,185		$	18,781		$	16,929		$	14,318		$	12,143

Note: For a definition and discussion of FFO, see page 26. FFO for all periods presented above includes the results of 7979 East Tufts Avenue, a property which we classify as held for sale and which we sold on July 12, 2006.

Adjusted Funds From Operations (AFFO)

(unaudited and in thousands)

	Three Months Ended
	31-Dec-06			30-Sep-06			30-Jun-06			31-Mar-06			31-Dec-05			30-Sep-05			30-Jun-05			31-Mar-05
Reconciliation of FFO to AFFO:
Funds from operations available to common stockholders and unitholders (FFO)	$	33,025		$	26,244		$	23,228		$	21,673		$	21,276		$	19,883		$	19,597		$	15,770
Adjustments:
Non real estate depreciation		118			285			37			71			23			28			10			—
Amortization of deferred financing costs		1,115			916			937			795			793			790			707			675
Non cash compensation		491			430			435			431			335			50			44			52
Loss from early extinguishment of debt		6			40			425			57			896			—			—			125
Straight line rents		(5,810	)		(3,856	)		(4,233	)		(3,843	)		(4,172	)		(3,815	)		(2,483	)		(2,553	)
Above and below market rent amortization		(2,238	)		(2,837	)		(1,504	)		(433	)		(632	)		(416	)		(230	)		(439	)
Capitalized leasing compensation		(217	)		(185	)		(888	)		(764	)		(105	)		(549	)		(127	)		—
Recurring capital expenditures and tenant improvements		(2,574	)		(344	)		(338	)		(904	)		(1,406	)		(240	)		(732	)		(519	)
Capitalized leasing commissions		(3,716	)		(1,523	)		(1,682	)		(265	)		(1,535	)		(757	)		(579	)		(180	)
AFFO available to common stockholders and unitholders	$	20,200		$	19,170		$	16,417		$	16,818		$	15,473		$	14,974		$	16,207		$	12,931

Note: For a definition and discussion of AFFO, see page 26. For a reconciliation of net income available to common stockholders to FFO, see above table. AFFO for all periods presented above includes the results of 7979 East Tufts Avenue, a property which we classify as held for sale and which we sold on July 12, 2006.

9

DIGITAL REALTY TRUST, INC.

Fourth Quarter 2006

Reconciliation of Earnings before interest, taxes, depreciation and amortization (EBITDA) (1)

(unaudited and in thousands)

	Three Months Ended
	31-Dec-06		30-Sep-06		30-Jun-06		31-Mar-06		31-Dec-05		30-Sep-05		30-Jun-05		31-Mar-05
Net income available to common stockholders	$	2,978	$	11,342	$	1,650	$	1,642	$	1,157	$	1,326	$	2,136	$	1,468
Interest		14,569		14,533		12,181		11,388		10,988		10,724		9,289		8,121
Depreciation and amortization		28,173		24,739		20,275		18,256		18,804		16,957		14,328		12,143
EBITDA		45,720		50,614		34,106		31,286		30,949		29,007		25,753		21,732
Minority interests		1,276		8,464		1,340		1,831		1,337		1,624		3,139		2,156
Preferred stock dividends		3,445		3,445		3,445		3,445		3,445		3,099		2,199		1,271
Adjusted EBITDA	$	50,441	$	62,523	$	38,891	$	36,562	$	35,731	$	33,730	$	31,091	$	25,159

(1) For the definition and discussion of EBITDA and Adjusted EBITDA, see page 26. EBITDA and adjusted EBITDA for the three months ended September 30, 2006 include a gain on sale of 7979 East Tufts Avenue of $18.0 million. Excluding this gain EBITDA and Adjusted EBITDA would have been $40.3 million and $44.5 million, respectively for three months ended September 30, 2006. EBITDA and Adjusted EBITDA for all periods presented above includes the results of 7979 East Tufts Avenue, a property which we classify as held for sale and which we sold on July 12, 2006.

Financial Ratios

(unaudited and in thousands)

	31-Dec-06		30-Sep-06		30-Jun-06		31-Mar-06		31-Dec-05		30-Sep-05		30-Jun-05		31-Mar-05
Total GAAP interest expense (including discontinued operations)	14,569		14,533		12,181		11,388		10,988		10,724		9,289		8,121
Capitalized interest	1,114		917		1,058		762		279		—		—		—
Change in accrued interest and other noncash amounts	(3,206	)	(2,590	)	57		(1,906	)	(1,660	)	(777	)	(1,203	)	(705	)
Cash interest expense (a)	12,477		12,860		13,296		10,244		9,607		9,947		8,086		7,416
Scheduled debt principal payments and preferred dividends	5,063		4,960		4,567		4,869		4,914		5,072		4,180		3,109
Total fixed charges	17,540		17,820		17,863		15,113		14,521		15,019		12,266		10,525
Debt service coverage ratio based on GAAP interest expense (b)	3.5	x	4.3	x	3.2	x	3.2	x	3.3	x	3.1	x	3.3	x	3.1	x
Debt service coverage ratio based on cash interest expense (b)	4.0	x	4.9	x	2.9	x	3.6	x	3.7	x	3.4	x	3.8	x	3.4	x
Fixed charge coverage ratio based on GAAP interest expense (c)	2.6	x	3.2	x	2.3	x	2.2	x	2.2	x	2.1	x	2.3	x	2.2	x
Fixed charge coverage ratio based on cash interest expense (c)	2.9	x	3.5	x	2.2	x	2.4	x	2.5	x	2.2	x	2.5	x	2.4	x
Debt to total market capitalization including debt and preferred equity (d)	31.1	%	33.4	%	32.3	%	30.8	%	33.3	%	35.9	%	42.8	%	37.4	%
Debt plus preferred stock to total market capitalization including debt and preferred equity (e)	35.7	%	38.6	%	38.8	%	37.1	%	40.7	%	44.6	%	48.6	%	44.9	%
Pretax income to interest expense (f)	1.5	x	2.6	x	1.5	x	1.6	x	1.5	x	1.6	x	1.8	x	1.6	x

(a) Cash interest expense is interest expense less amortized deferred financing fees and includes interest that we capitalized. We consider cash interest expense to be a useful measure of interest as it excludes non-cash based interest expense.

(b) Adjusted EBITDA divided by interest expense. Ignoring the effect of the gain on sale of 7979 East Tufts Avenue, debt service coverage ratio was 3.1 using GAAP interest expense and 3.5 using cash paid for interest for the three months ended September 30, 2006.

(c) Adjusted EBITDA divided by fixed charges. Fixed charges include interest expense as per (a) above and scheduled debt principal payments and preferred dividends. Ignoring the effect of the gain on sale of 7979 East Tufts Avenue, fixed charges coverage ratio was 2.3 using GAAP interest expense and 2.5 using cash paid for interest for the three months ended September 30, 2006.

(d) Mortgage debt and other loans divided by mortgage debt and other loans plus the liquidation value of preferred stock and the market value of outstanding common stock and operating partnership units, assuming the redemption of operating partnership units for shares of our common stock. Mortgage debt and other loans amount excludes the outstanding principal for a loan related to 7979 East Tufts Avenue of $26.0 million. We classified this property as held for sale at June 30, 2006. We completed its sale on July 12, 2006 and the eliminated our liability for the $26.0 million loan.

(e) Same as (d), except numerator includes preferred stock.

(f) Calculated as income Including gain on sale of assets before minority interest and interest divided by GAAP interest expense. Ignoring the effect of the gain on sale of 7979 East Tufts Avenue, pretax income to interest expense was 1.4 for the three months ended September 30, 2006.

10

DIGITAL REALTY TRUST, INC.

Fourth Quarter 2006

Net Operating Income (NOI) and Run-rate NOI

For the three months ended December 31, 2006

(in thousands)

Rental revenues	$	70,333
Tenant reimbursements		13,984
Rental property operating and maintenance		(20,250	)
Property taxes		(6,879	)
Insurance		(846	)
NOI	$	56,342
Actual results of properties acquired during the quarter:
Rental revenues		(5,612	)
Tenant reimbursements		(80	)
Rental property operating and maintenance		3,698
Property taxes		92
Insurance		—
Prorated full quarter of actual results of properties acquired during the quarter:
Rental revenues		6,823
Tenant reimbursements		397
Rental property operating and maintenance		(4,049	)
Property taxes		(100	)
Insurance		—
Run-rate NOI	$	57,511
Reconciliation of net income available to common stockholders to NOI
Net income available to common stockholders	$	2,978
Other revenues		(197	)
Interest expense		14,569
Depreciation and amortization		28,173
General and administrative expenses		6,535
Loss from early extinguishment of debt		6
Other expenses		173
Equity in earnings of unconsolidated joint venture		(177	)
Interest and other income		(419	)
Minority interests in continuing operations of operating partnership		1,270
Loss from discontinued operations before minority interests		60
Gain on sale of assets		(80	)
Minority interests attributable to discontinued operations		6
Preferred stock dividends		3,445
NOI	$	56,342

Note: NOI and run-rate NOI exclude the operations of 7979 East Tufts Avenue, a property which we classified as held for sale as at June 30, 2006 and sold on July 12, 2006. For a definition and discussion of NOI and Run-rate NOI, see page 26.

11

DIGITAL REALTY TRUST, INC.

Fourth Quarter 2006

Same Store and New Properties Consolidated Quarterly Statements of Operations

(unaudited and in thousands, except share data)

	Three Months Ended
Same store (1)	31-Dec-06			30-Sep-06			30-Jun-06			31-Mar-06			31-Dec-05			30-Sep-05			30-Jun-05			31-Mar-05
Operating Revenues:
Rental	$	35,744		$	34,417		$	33,324		$	31,546		$	31,558		$	30,841		$	31,246		$	30,215
Tenant reimbursements		8,525			8,863			8,593			7,336			8,153			7,106			6,565			6,157
Other		197			—			—			—			89			265			3,780			300
Total operating revenues		44,466			43,280			41,917			38,882			39,800			38,212			41,591			36,672
Operating Expenses:
Rental property operating and maintenance		10,410			10,058			9,318			8,597			9,160			7,718			7,350			6,147
Property taxes		2,887			3,445			3,379			3,335			3,524			3,157			3,370			3,429
Insurance		500			603			632			536			636			456			459			572
Depreciation and amortization		11,898			13,473			11,971			11,286			11,181			11,220			11,000			10,990
General and administrative (2)		6,535			4,986			4,674			4,246			4,425			3,324			2,453			2,413
Other		135			434			63			142			35			98			961			521
Total operating expenses		32,365			32,999			30,037			28,142			28,961			25,973			25,593			24,072
Operating income		12,101			10,281			11,880			10,740			10,839			12,239			15,998			12,600
Other Income (Expenses):
Equity in earnings of unconsolidated joint venture		—			—			—			—			—			—			—			—
Interest and other income		308			167			149			123			133			100			80			33
Interest expense (3)		(8,298	)		(7,173	)		(7,034	)		(6,494	)		(6,804	)		(7,187	)		(7,120	)		(7,095	)
Loss from early extinguishment of debt		(6	)		(39	)		(425	)		(57	)		(896	)		—			—			(125	)
Income from continuing operations before minority interests		4,105			3,236			4,570			4,312			3,272			5,152			8,958			5,413
Loss from discontinued operations before minority interests		(60	)		203			(163	)		(328	)		(474	)		(169	)		(217	)		(127	)
Gain on sale of assets		80			18,016			—			—			—			—			—			—
Income before minority interests	$	4,125		$	21,455		$	4,407		$	3,984		$	2,798		$	4,983		$	8,741		$	5,286
New properties (1)
Operating Revenues:
Rental	$	34,589		$	25,135		$	18,709		$	16,278		$	15,946		$	12,746		$	4,902		$	974
Tenant reimbursements		5,459			4,774			4,082			4,164			3,494			3,864			1,514			321
Other		—			—			—			168			1,343			—			52			—
Total operating revenues		40,048			29,909			22,791			20,610			20,783			16,610			6,468			1,295
Operating Expenses:
Rental property operating and maintenance		9,840			5,416			4,300			3,113			4,206			4,136			1,816			497
Property taxes		3,992			3,793			3,717			3,504			3,213			2,895			1,351			53
Insurance		346			350			436			354			250			295			52			8
Depreciation and amortization		16,275			11,266			7,540			6,227			6,859			5,089			2,728			549
General and administrative (2)		—			—			—			—			—			—			—			—
Other		38			173			87			39			12			8			—			—
Total operating expenses		30,491			20,998			16,080			13,237			14,540			12,423			5,947			1,107
Operating income	$	9,557		$	8,911		$	6,711		$	7,373		$	6,243		$	4,187		$	521		$	188
Other Income (Expenses):
Equity in earnings of unconsolidated joint venture		177			—			—			—			—			—			—			—
Interest and other income		111			198			113			106			737			65			30			96
Interest expense (3)		(6,271	)		(7,313	)		(4,796	)		(4,545	)		(3,839	)		(3,186	)		(1,818	)		(675	)
Loss from early extinguishment of debt		—			—			—			—			—			—			—			—
Income from continuing operations before minority interests		3,574			1,796			2,028			2,934			3,141			1,066			(1,267	)		(391	)
Income from discontinued operations before minority interests		—			—			—			—			—			—			—			—
Gain on sale of assets		—			—			—			—			—			—			—			—
Income before minority interests	$	3,574		$	1,796		$	2,028		$	2,934		$	3,141		$	1,066		$	(1,267	)	$	(391	)

(1) Same store properties are properties that were acquired before December 31, 2004 and new properties are properties acquired after December 31, 2004. During the quarter ended June 30, 2006 we classified our property located at 7979 East Tufts Avenue as available for sale and we completed this property sale in July 2006. We have presented all activity for this property in Loss from discontinued operations for all periods presented above.

(2) General and administrative expenses are included entirely in same store as they are not allocable to specific properties.

(3) Interest expense on our line of credit is allocated entirely to new properties.

12

DIGITAL REALTY TRUST, INC.

Same Store Operating Trend summary

(unaudited and in thousands, except share data)

	Three Months Ended
Same store (1)	31-Dec-06			30-Sep-06			Percentage Change		31-Dec-05			Percentage Change
Rental	$	35,744		$	34,417		3.9	%	$	31,558		9.1	%
Tenant reimbursements		8,525			8,863		(3.8	%)		8,153		8.7	%
		44,269			43,280		3.3	%		39,711		9.0	%
Rental property operating and maintenance		10,410			10,058		3.5	%		9,160		9.8	%
Property taxes		2,887			3,445		(16.2	%)		3,524		(2.2	%)
Insurance		500			603		(17.1	%)		636		(5.2	%)
		13,797			14,106		(2.2	%)		13,320		5.9	%
Net Operating income	$	30,472		$	29,174		4.4	%	$	26,391		10.5	%
Same store occupancy at end of quarter		97.0	%		96.3	%				94.9	%

(1) Same store properties were acquired before December 31, 2004.

13

DIGITAL REALTY TRUST, INC.

Fourth Quarter 2006

Consolidated Debt Analysis

(in thousands)

	Maturity Date	Principal Balance as of December 31, 2006		% of Debt		Interest Rate as of December 31, 2006		Interest Rate as of December 31, 2006 including swaps
Unhedged Floating Rate Debt
Unsecured credit facility	October 31, 2008 (1)		145,452	12.9	%	6.82	%	—
		$	145,452	12.9	%
Fixed Rate Mortgage Debt and Hedged Floating Rate Debt
Secured Term Debt	November 11, 2014	$	150,887	13.4	%	5.65	%	—
350 East Cermak Road	June 9, 2008 (2)		99,353	8.8	%	7.52	%	6.23	%
6 Braham Street	April 10, 2011		25,831	2.3	%	6.22	%	5.84	%
200 Paul Avenue 1-4	October 8, 2015		81,000	7.2	%	5.74	%	—
600 West Seventh Street	March 15, 2016		59,181	5.3	%	5.80	%	—
2323 Bryan Street	November 6, 2009		56,579	5.0	%	6.04	%	—
34551 Ardenwood Boulevard 1-4	November 11, 2016		55,000	4.9	%	5.95	%	—
1100 Space Park Drive	December 11, 2016		55,000	4.9	%	5.89	%	—
2334 Lundy Place	November 11, 2016		40,000	3.6	%	5.96	%	—
114 Rue Ambroise Croizat	January 18, 2012		43,260	3.9	%	5.07	%	5.13	%
Unit 9, Blanchardstown Corporate Park	January 18, 2012		37,193	3.3	%	5.07	%	5.35	%
4055 Valley View Lane	January 1, 2009		20,610	1.8	%	6.56	%	4.95	%
100 Technology Center Drive	April 1, 2009		20,000	1.8	%	7.06	%	5.52	%
1125 Energy Park Drive	March 1, 2032		9,569	0.9	%	7.62	%	—
375 Riverside Parkway	December 1, 2008		8,775	0.8	%	7.21	%	6.87	%
Paul van Vlissingenstraat 16	July 18, 2013		14,662	1.3	%	5.22	%	5.58	%
Gyroscoopweg 2E-2F	October 18, 2013		9,332	0.8	%	5.22	%	5.49	%
Chemin de l’Epinglier 2	July 18, 2013		10,605	0.9	%	5.32	%	5.57	%
731 East Trade Street	July 1, 2020		5,883	0.5	%	8.22	%	—
		$	802,720	71.5	%
Exchangeable senior debentures		$	172,500	15.4	%	4.13	%	—
Total Fixed Rate Debt		$	975,220	86.9	%
Loan premium—1125 Energy Park Drive and 731 East Trade Street			1,966	0.2	%
Total Consolidated Debt		$	1,122,638	100.0	%
Weighted average cost of debt (including interest rate swaps)								5.69	%

(1) A one-year extension option is available.

(2) Two one-year extensions are available.

Credit Facility

(in thousands)

	Maximum Available		Available as of December 31, 2006		Drawn as of December 31, 2006
Unsecured Credit Facility	$	500,000	$	148,000	$	145,452

14

DIGITAL REALTY TRUST, INC.

Fourth Quarter 2006

Debt Maturities

(in thousands)

Property	2007		2008		2009		2010		2011		Thereafter		Total
Unsecured credit facility (1)	$	—	$	145,452	$	—	$	—	$	—	$	—	$	145,452
Secured Term Debt (2)		2,150		2,251		2,408		2,550		2,700		138,828		150,887
350 East Cermak Road (3)		1,343		98,010		—		—		—		—		99,353
200 Paul Avenue 1-4		231		1,433		1,533		1,624		1,721		74,458		81,000
600 West Seventh Street		1,149		1,218		1,290		1,367		1,448		52,709		59,181
2323 Bryan Street		746		794		55,039		—		—		—		56,579
34551 Ardenwood Boulevard 1-4		—		—		55		639		678		53,628		55,000
1100 Space Park Drive		—		—		56		638		687		53,619		55,000
2334 Lundy Place		—		—		40		457		493		39,010		40,000
114 Rue Ambroise Croizat		487		649		649		649		649		40,177		43,260
Unit 9, Blanchardstown Corporate Park		418		558		558		558		558		34,543		37,193
6 Braham Street		—		—		587		783		24,461		—		25,831
4055 Valley View Lane		540		540		19,530		—		—		—		20,610
100 Technology Center Drive		—		—		20,000		—		—		—		20,000
1125 Energy Park Drive		114		121		133		143		155		8,903		9,569
375 Riverside Parkway		211		8,564		—		—		—		—		8,775
Paul van Vlissingenstraat 16		222		222		222		222		222		13,552		14,662
Gyroscoopweg 2E-2F		140		140		140		140		140		8,632		9,332
Chemin de l’Epinglier 2		160		160		160		160		160		9,805		10,605
731 East Trade Street		174		189		205		235		274		4,806		5,883
Exchangeable senior debentures (4)		—		—		—		—		172,500		—		172,500
Total	$	8,085	$	260,301	$	102,605	$	10,165	$	206,846	$	532,670	$	1,120,672

Weighted Average Term to Initial Maturity (4)	5.8 Years
Weighted Average Term to Initial Maturity (assuming exercise of extension options) (4)	6.1 Years

(1) A one-year extension option is available.

(2) This amount represents six mortgage loans secured by our interests in 36 NE 2nd Street, 3300 East Birch Street, 100 & 200 Quannapowitt Parkway, 300 Boulevard East, 4849 Alpha Road, and 11830 Webb Chapel Road. Each of these loans are cross-collateralized by the six properties.

(3) Two one-year extensions are available.

(4) Assumes maturity of Exchangeable senior debentures at first redemption date in August 2011.

Note: Above amounts assume no exercise of extensions and total excludes $1,966 of Loan Premiums.

15

DIGITAL REALTY TRUST, INC.

Fourth Quarter 2006

Portfolio summary

	12/31/2006		9/30/2006
Number of Properties:
Domestic	51		48
International	8		5
	59	(2)	53
Number of Buildings:
Domestic	69		65
International	10		6
	79		71
Number of Markets:
Domestic	20		19
International	5		4
	25		23
Net Rentable Square Feet:
Domestic	8,756,559		8,836,424
International	625,301		275,480
	9,381,860		9,111,904
Redevelopment Square Feet:
Domestic	1,353,002		1,213,326
International	293,253		35,000
	1,646,255		1,248,326
Portfolio Occupancy (1)	95.0	%	94.7%
Same Store Pool Occupancy	97.0%		96.3%
Average Original Lease Term (years)	12.2		12.3
Average Remaining Lease Term (years)	6.9		7.2
Lease Expirations (through 2008)	11.9	%	6.9%

(1) Occupancy excludes space held for redevelopment.

(2) Excludes a property held as an investment in an unconsolidated joint venture.

16

DIGITAL REALTY TRUST, INC.

Fourth Quarter 2006

Properties acquired

For the three months ended December 31, 2006

Property	Metropolitan Area	Date Acquired	Purchase Price (in millions)		Net Rentable Square Footage of Property	Total Square Footage Held for Redevelopment	Percentage of Total Rentable Square Footage of Property Occupied (1)		Major Tenant(s)
1807 Michael Faraday Court	Reston, Virginia	October-06	40.1	(2)	19,237	—	100.0	%	Freescale Semiconductor; Toyota; Phase 2 Solutions
8100 Boone Boulevard	Vienna, Virginia	October-06		(2)	17,015	—	100.0	%	Redbus Interhouse, BV
111 Eighth Avenue	New York, NY	October-06		(2)	83,137	—	78.6	%	Savvis, Inc.
2055 E. Technology Circle	Phoenix	October-06	9.7		—	76,350	0.0	%	N/A
2001 Sixth Avenue (3)	Seattle	November-06	53.9		389,460	—	91.8	%	Switch & Data, Global Crossing, Sprint Communications
114 Rue Ambroise Croizat	Paris, France	December-06	53.8		150,996	229,519	56.0	%	Tycom, IX Europe, Flag Telecom
Unit 9, Blanchardstown Corporate Park	Dublin, Ireland	December-06	47.9		120,000	—	100.0	%	Amazon Data Services Ireland, Paypal, IBM Ireland, Allied Irish Banks
			205.4		779,845	305,869	85.1	%

(1) Excludes space held for redevelopment.

(2) These three properties were purchased together for a purchase price of $40.0 million. The purchase includes a fee-simple ownership of 1807 Michael Faraday Court and two leasehold interests at 111 Eight Avenue and 8100 Boone Boulevard.

(3) We acquired a 49% interest in this property, which is presented as an investment in unconsolidated joint venture on the consolidated financial statements.

17

DIGITAL REALTY TRUST, INC.

Fourth Quarter 2006

Occupancy Analysis

As of December 31, 2006

										Occupancy (2)						Net rentable Square Feet as a % of			Gross Annualized Rent as a % of
Property	Acquisition date	Metropolitan Area	Net Rentable Square Feet	Redevelopment Space	Gross Annualized Rent ($000) (1)	As of 12/31/06		As of 9/30/06		As of 6/30/06		As of 3/31/06		As of 12/31/05		Property Type		Total Portfolio	Property Type		Total Portfolio
Internet Gateways
350 East Cermak Road	May-05	Chicago	892,843	240,896	23,282	94.2	%	89.9	%	93.3	%	92.2	%	92.2	%	27.8	%	9.5	25.6	%	9.5	%
200 Paul Avenue 1-4	November-04	San Francisco	501,761	25,919	16,037	97.2	%	97.8		95.1		94.2		95.8		15.6		5.3	17.6		6.5
2323 Bryan Street	January-02	Dallas	457,217	19,890	11,899	83.7	%	83.0		85.2		82.4		82.0		14.3		4.9	13.1		4.8
600 West Seventh Street	May-04	Los Angeles	444,001	45,721	11,049	97.8	%	96.8		97.3		97.3		90.8		13.9		4.7	12.1		4.5
1100 Space Park Drive	November-04	Silicon Valley	165,297	—	6,953	97.6	%	100.0		100.0		97.4		94.9		5.2		1.8	7.6		2.8
6 Braham Street	July-02	London, England	63,233	—	6,434	100.0	%	100.0		100.0		100.0		100.0		2.0		0.7	7.1		2.6
600-780 S. Federal	September-05	Chicago	161,547	—	4,895	83.6	%	86.7		83.6		81.2		86.1		5.0		1.7	5.4		2.0
12001 North Freeway	April-06	Houston	281,426	19,279	4,185	98.1	%	98.8		98.8		N/A		N/A		8.8		3.0	4.6		1.7
36 NE 2nd Street	January-02	Miami	162,140	—	4,166	95.9	%	81.2		95.9		81.2		81.2		5.1		1.7	4.6		1.7
731 East Trade Street	August-05	Charlotte	40,879	—	1,098	100.0	%	100.0		100.0		100.0		100.0		1.3		0.4	1.2		0.4
113 North Myers	August-05	Charlotte	20,086	9,132	690	100.0	%	100.0		100.0		100.0		100.0		0.6		0.2	0.8		0.3
125 North Myers	August-05	Charlotte	12,160	13,242	309	100.0	%	100.0		100.0		85.8		85.8		0.4		0.1	0.3		0.1
			3,202,590	374,079	90,997	94.0	%	92.2		93.7		91.2		90.2		100.0		34.0	100.0		36.9
Data Centers
120 E. Van Buren Street	July-06	Phoenix	206,359	81,155	21,521	96.8	%	94.7		N/A		N/A		N/A		4.5		2.2	17.5		8.8
300 Boulevard East	November-02	New York	311,950	—	12,199	99.7	%	99.7		90.9		99.7		87.4		6.9		3.4	10.0		4.9
833 Chestnut Street	March-05	Philadelphia	535,098	119,660	8,727	78.6	%	75.5		75.5		75.5		91.5		11.8		5.7	7.1		3.5
111 Eighth Avenue	October-06	New York	83,137	—	7,725	100.0	%	N/A		N/A		N/A		N/A		1.8		0.9	6.3		3.1
Unit 9, Blanchardstown Corporate Park	December-06	Dublin, Ireland	120,000	—	7,363	85.9	%	N/A		N/A		N/A		N/A		2.6		1.3	6.0		3.0
2045 & 2055 LaFayette Street	May-04	Silicon Valley	300,000	—	6,120	100.0	%	100.0		100.0		100.0		100.0		6.6		3.2	5.0		2.5
11830 Webb Chapel Road	August-04	Dallas	365,647	—	5,716	95.0	%	95.0		95.0		93.3		93.3		8.1		3.9	4.7		2.3
150 South First Street	September-04	Silicon Valley	179,761	—	4,913	100.0	%	95.7		100.0		100.0		98.5		4.0		1.9	4.0		2.0
14901 FAA Boulevard	June-06	Dallas	263,700	—	4,364	100.0	%	100.0		100.0		N/A		N/A		5.8		2.8	3.6		1.8
2334 Lundy Place	December-02	Silicon Valley	130,752	—	4,090	100.0	%	100.0		100.0		100.0		100.0		2.9		1.4	3.3		1.7
114 Rue Amboise Croizat	December-06	Paris, France	122,627	229,519	3,471	56.0	%	N/A		N/A		N/A		N/A		2.7		1.3	2.8		1.4
2401 Walsh Street	June-05	Silicon Valley	167,932	—	3,118	100.0	%	100.0		100.0		100.0		100.0		3.7		1.8	2.6		1.3
200 North Nash Street	June-05	Los Angeles	113,606	—	2,110	100.0	%	100.0		100.0		100.0		100.0		2.5		1.2	1.7		0.9
Gyroscoopweg 2E-2F	July-06	Amsterdam, Netherlands	55,585	—	2,093	100.0	%	N/A		N/A		N/A		N/A		1.2		0.6	1.7		0.8
2403 Walsh Street	June-05	Silicon Valley	103,940	—	1,930	100.0	%	100.0		100.0		100.0		100.0		2.3		1.1	1.6		0.8
4025 Midway Road	January-06	Dallas	36,856	63,734	1,918	100.0	%	100.0		40.5		N/A		N/A		0.8		0.4	1.6		0.8
Paul van Vlissingenstraat 16	August-05	Amsterdam, Netherlands	77,472	35,000	1,862	58.8	%	58.8		58.8		62.0		62.0		1.7		0.8	1.5		0.8
4700 Old Ironsides Drive	June-05	Silicon Valley	90,139	—	1,810	100.0	%	100.0		100.0		100.0		100.0		2.0		1.0	1.5		0.7
8534 Concord Center Drive	June-05	Denver	82,229	—	1,674	100.0	%	100.0		100.0		100.0		100.0		1.8		0.9	1.4		0.7
6800 Millcreek Drive	April-06	Toronto, Canada	83,758	—	1,567	100.0	%	100.0		100.0		N/A		N/A		1.8		0.9	1.3		0.6
3065 Gold Camp Drive	October-04	Sacramento	62,957	—	1,530	100.0	%	100.0		100.0		100.0		100.0		1.5		0.7	1.3		0.6
3015 Winona Avenue	December-04	Los Angeles	82,911	—	1,494	100.0	%	100.0		100.0		100.0		100.0		1.8		0.9	1.2		0.6
251 Exchange Place	November-05	Northern Virginia	70,982	—	1,457	100.0	%	100.0		100.0		100.0		100.0		1.6		0.8	1.2		0.6
101 Aquila Way	April-06	Atlanta	313,581	—	1,415	100.0	%	100.0		100.0		N/A		N/A		6.9		3.3	1.2		0.6
8100 Boone Boulevard	October-06	Northern Virginia	17,015	—	1,411	100.0	%	N/A		N/A		N/A		N/A		0.4		0.2	1.2		0.6
1125 Energy Park Drive	March-05	Minneapolis/St. Paul	112,827	—	1,379	100.0	%	100.0		100.0		100.0		100.0		2.5		1.2	1.1		0.6
Chemin de l’Epinglier 2	November-05	Geneva, Switzerland	59,190	—	1,340	100.0	%	100.0		100.0		100.0		100.0		1.3		0.6	1.1		0.5
3300 East Birch Street	August-03	Los Angeles	68,807	—	1,328	100.0	%	100.0		100.0		100.0		100.0		1.5		0.7	1.1		0.5
Clonshaugh Industrial Estate	February-06	Dublin, Ireland	20,000	—	1,277	100.0	%	100.0		100.0		N/A		N/A		0.4		0.2	1.0		0.5
375 Riverside Parkway	June-03	Atlanta	126,300	123,891	1,201	100.0	%	100.0		100.0		100.0		100.0		2.8		1.3	1.0		0.5
2440 Marsh Lane	January-03	Dallas	6,705	128,545	1,179	100.0	%	100.0		100.0		100.0		100.0		0.1		0.1	1.0		0.5
600 Winter Street	September-06	Boston	30,400	—	960	100.0	%	100.0		N/A		N/A		N/A		0.7		0.3	0.8		0.4
7620 Metro Center Drive	December-05	Austin	45,000	—	748	100.0	%	100.0		100.0		100.0		100.0		1.0		0.5	0.6		0.3
2300 NW 89th Place	September-06	Miami	64,174	—	605	100.0	%	100.0		N/A		N/A		N/A		1.4		0.7	0.5		0.2
1807 Michael Faraday Court	October-06	Northern Virginia	19,237	—	564	100.0	%	N/A		N/A		N/A		N/A		0.4		0.2	0.5		0.2
7500 Metro Center Drive	December-05	Austin	—	74,962	—	0.0	%	0.0		0.0		0.0		0.0		—		—	—		—

18

DIGITAL REALTY TRUST, INC.

Fourth Quarter 2006

Occupancy Analysis

As of December 31, 2006

											Occupancy (2)						Net rentable Square Feet as a % of				Gross Annualized Rent as a % of
Property	Acquisition date	Metropolitan Area	Net Rentable Square Feet	Redevelopment Space	Gross Annualized Rent ($000) (1)		As of 12/31/06		As of 9/30/06		As of 6/30/06		As of 3/31/06		As of 12/31/05		Property Type		Total Portfolio		Property Type		Total Portfolio
3 Corporate Place	December-05	New York	—	283,124		—	0.0	%	0.0		0.0		0.0		0.0		—		—		—		—
115 Second Avenue	October-05	Boston	10,494	56,236		—	0.0	%	0.0		0.0		0.0		0.0		0.2		0.1		—		—
2055 E. Technology Circle	November-06	Phoenix	—	76,350		—	0.0	%	N/A		N/A		N/A		N/A		—		—		—		—
			4,541,128	1,272,176		122,179	94.4	%	95.1		93.7		91.6		94.9		100.0		48.5		100.0		49.6
Technology Manufacturing
34551 Ardenwood Boulevard 1-4	January-03	Silicon Valley	307,657	—		7,926	100.0	%	100.0		100.0		100.0		100.0		50.9		3.3		56.5		3.2
47700 Kato Road & 1055 Page Avenue	September-03	Silicon Valley	183,050	—		3,576	100.0	%	100.0		100.0		100.0		100.0		30.3		2.0		25.4		1.4
2010 East Centennial Circle	May-03	Phoenix	113,405	—		2,549	100.0	%	100.0		100.0		100.0		100.0		18.8		1.2		18.1		1.0
			604,112	—		14,052	100.0	%	100.0		100.0		100.0		100.0		100.0		6.5		100.0		5.6
Technology Office
100 & 200 Quannapowitt Parkway	June-04	Boston	386,956	—		7,203	100.0	%	100.0		94.9		100.0		100.0		37.4		4.1		36.2		2.9
4055 Valley View Lane	September-03	Dallas	240,153	—		4,507	90.5	%	88.3		97.0		94.3		94.3		23.2		2.6		22.7		1.8
100 Technology Center Drive	February-04	Boston	197,000	—		3,743	100.0	%	100.0		100.0		100.0		100.0		19.1		2.1		18.8		1.5
4849 Alpha Road	April-04	Dallas	125,538	—		2,856	100.0	%	100.0		100.0		100.0		100.0		12.1		1.3		14.4		1.2
4650 Old Ironsides Drive	June-05	Silicon Valley	84,383	—		1,567	100.0	%	100.0		100.0		100.0		100.0		8.2		0.9		7.9		0.5
			1,034,030	—		19,876	97.8	%	97.4		97.4		99.3		98.7		100.0		11.0		100.0		7.9
Portfolio Total/Weighted Average			9,381,860	1,646,255	$	247,104	95.0	%	94.7	%	94.6	%	93.1	%	94.2	%	100.0	%	100.0	%	100.0	%	100.0	%

(1) Gross annualized rent represents the monthly contractual rent under existing leases as of December 31, 2006 multiplied by 12.

(2) Occupancy excludes space held for redevelopment as of December 31, 2006.

19

DIGITAL REALTY TRUST, INC.

Fourth Quarter 2006

Major Tenants

as of December 31, 2006

	Tenant	Number of Locations	Total Occupied Square Feet (1)	Percentage of Net Rentable Square Feet		Gross Annualized Rent ($000) (2)		Percentage of Gross Annualized Rent		Weighted Average Remaining Lease Term in Months
1	Savvis Communications (3)	11	1,408,809	15.0	%	$	29,322	11.9	%	124
2	Qwest Communications International, Inc.	10	684,691	7.3	%		19,115	7.7	%	98
3	TelX Group, Inc.	10	87,305	0.9	%		9,109	3.7	%	238
4	Comverse Technology, Inc.	1	367,033	3.9	%		6,904	2.8	%	49
5	JPMorgan Chase & Co.	2	41,957	0.4	%		6,834	2.8	%	84
6	Verio, Inc. (4)	2	241,370	2.6	%		6,718	2.7	%	69
7	Leslie & Godwin (5)	1	63,233	0.7	%		6,434	2.6	%	36
8	Equinix Operating Company, Inc.	2	295,338	3.1	%		6,210	2.5	%	101
9	Level 3 Communications, LLC (6)	11	282,589	3.0	%		5,551	2.2	%	65
10	AT & T	8	286,454	3.1	%		5,513	2.2	%	75
11	Amgen, Inc.	1	131,386	1.4	%		5,346	2.2	%	52
12	AboveNet, Inc.	6	150,661	1.6	%		5,207	2.1	%	139
13	Thomas Jefferson University	1	179,707	1.9	%		3,864	1.6	%	46
14	Stone & Webster, Inc. (7)	1	197,000	2.1	%		3,743	1.5	%	75
15	Seagate Technology	1	183,050	2.0	%		3,576	1.4	%	57
Total/Weighted Average			4,600,583	49.0	%	$	123,446	49.9	%	94

(1) Occupied square footage is defined as leases that have commenced on or before December 31, 2006.

(2) Gross annualized rent represents the monthly contractual rent under existing leases as of December 31, 2006 multiplied by 12.

(3) Microsoft subleases 192,000 net rentable square feet (approximately $3.8 million of gross annualized rent) of this space and has the right to become tenant if the primary lessor defaults.

(4) Verio is a wholly-owned subsidiary of Nippon Telegraph & Telephone.

(5) Leslie & Godwin is a UK subsidiary of AON Corporation.

(6) Level 3 Communications includes Wiltel Communications, OnFiber Communications & Broadwing Communications.

(7) Stone & Webster is a subsidiary of The Shaw Group.

20

DIGITAL REALTY TRUST, INC.

Fourth Quarter 2006

Lease Expirations and Lease Distribution

Lease Expirations

As of December 31, 2006

Year	Number of Leases Expiring	Square Footage of Expiring Leases	Percentage of Net Rentable Square Feet		Gross Annualized Rent ($000) (1)		Percentage of Gross Annualized Rent		Gross Annualized Rent Per Occupied Square Foot		Gross Annualized Rent Per Occupied Square Foot at Expiration		Gross Annualized Rent at Expiration ($000)
Available		470,053	5.0	%	$	—	0.0	%
2007	191	188,572	2.0	%	$	10,371	4.2	%	$	55.00	$	55.03	$	10,377
2008	102	421,575	4.5	%	$	17,468	7.1	%	$	41.44	$	43.30	$	18,254
2009	87	506,412	5.4	%	$	22,251	9.0	%	$	43.94	$	45.04	$	22,809
2010	63	864,674	9.2	%	$	22,294	9.0	%	$	25.78	$	27.11	$	23,439
2011	70	1,269,751	13.5	%	$	34,251	13.9	%	$	26.97	$	28.85	$	36,631
2012	38	529,812	5.6	%	$	7,390	3.0	%	$	13.95	$	15.74	$	8,337
2013	26	564,145	6.0	%	$	12,155	4.9	%	$	21.55	$	26.53	$	14,965
2014	32	543,225	5.8	%	$	12,241	5.0	%	$	22.53	$	27.79	$	15,095
2015	72	1,642,474	17.5	%	$	45,400	18.4	%	$	27.64	$	33.16	$	54,464
2016	49	743,571	7.9	%	$	23,093	9.3	%	$	31.06	$	38.37	$	28,530
Thereafter	58	1,637,596	17.6	%	$	40,190	16.2	%	$	24.54	$	37.26	$	61,024
Portfolio Total /Weighted Average	788	9,381,860	100.0	%	$	247,104	100.0	%	$	27.73	$	32.98	$	293,925

Lease Distribution

As of December 31, 2006

Square Feet Under Lease	Number of Leases	Percentage of All Leases		Total Net Rentable Square Feet	Percentage of Net Rentable Square Feet		Gross Annualized Rent ($000) (1)		Percentage of Gross Annualized Rent
Available				470,053	5.0	%			0.0	%
2,500 or less	492	62.4	%	184,888	2.0	%	$	8,783	3.6	%
2,501 - 10,000	128	16.2	%	668,911	7.1	%	$	26,174	10.6	%
10,001 - 20,000	63	8.0	%	951,877	10.1	%	$	27,873	11.3	%
20,001 - 40,000	44	5.6	%	1,253,361	13.4	%	$	26,401	10.7	%
40,001 - 100,000	39	5.0	%	2,463,532	26.3	%	$	62,943	25.5	%
Greater than 100,000	22	2.8	%	3,389,238	36.1	%	$	94,930	38.3	%
Portfolio Total	788	100.0	%	9,381,860	100.0	%	$	247,104	100.0	%

(1) Gross annualized rent represents the monthly contractual rent under existing leases as of December 31, 2006 multiplied by 12.

21

DIGITAL REALTY TRUST, INC.

Fourth Quarter 2006

Leasing Activity

As of December 31, 2006

	For the Three Months Ended December 31, 2006		% Leased
Occupied Square Feet as of September 30, 2006	8,626,337			94.7	%
Q4 2006 Acquisitions:
1807 Michael Faraday Court	19,237			100.0	%
8100 Boone Boulevard	17,015			100.0	%
111 Eighth Avenue	83,137			100.0	%
2055 E. Technology Circle	—			0.0	%
114 Rue Ambroise Croizat	68,716			56.0	%
Unit 9, Blanchardstown Corporate Park	103,104			85.9	%
Occupied Square Feet including Q3 2006 Acquisitions	8,917,546			95.1	%
Expirations and Reductions (including renewals)	(28,105	)		(0.3	%)
New Leases and Expansions	82,056			0.9	%
Renewals and Extensions	9,155			0.1	%
Remeasurements (1)	(68,845	)		(0.7	%)
Terminations	—			0.0	%
Occupied Square Feet as of December 31, 2006	8,911,807			95.0	%
GAAP Rent Growth (2)
Expiring Rent per Square Foot			$	13.28
New / Renewed Rent per Square Foot			$	90.12
Percentage Increase				578.6	%
Weighted Average Lease Term - New (in months)				64
Weighted Average Lease Term - Renewal (in months)				24

(1) Represents remeasuring of building to Building Owners and Managers Association (BOMA) standards.

(2) Represents estimated cash rent growth adjusted for straight-line rents in accordance with GAAP.

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DIGITAL REALTY TRUST, INC.

Fourth Quarter 2006

Tenant Improvements and Leasing Commissions

	Three Months Ended										Full Year 2005
	12/31/2006		9/30/2006		6/30/2006		3/31/2006		12/31/2005
Renewals (1)
Number of renewals		6		—		2		—		2		9
Square Feet		9,155		—		3,509		—		8,086		33,007
Tenant improvement costs per square foot (2)	$	—	$	—	$	—	$	—	$	1.14	$	6.86
Leasing commission costs per square foot (2)		3.36		—		5.19		—		2.61		5.50
Total renewal lease costs per square foot	$	3.36	$	—	$	5.19	$	—	$	3.75	$	12.36
New Leases (3)
Number of non-redevelopment leases		53		57		41		46		16		63
Non-Redevelopment square feet		82,056		87,967		51,021		84,488		41,784		107,923
Non-Redevelopment tenant improvement costs per square foot (2)	$	21.03	$	115.76	$	71.73	$	20.64	$	10.37	$	10.46
Non-Redevelopment leasing commission costs per square foot (2)		7.25		16.08		22.64		8.78		26.28		17.05
Number of redevelopment leases		1		2		2		—		—		—
Redevelopment square feet		22,312		66,732		25,189		—		—		—
Redevelopment tenant improvement costs per square foot (2) (5)	$	—	$	46.53	$	325.66	$	—	$	—	$	—
Redevelopment leasing commission costs per square foot (2)		12.40		13.15		16.16		—		—		—
Total new lease costs per square foot	$	40.68	$	100.71	$	109.26	$	77.91	$	36.65	$	26.30
Total (4)
Number of leases		60		59		45		46		18		72
Square Feet		113,523		154,699		79,719		84,488		49,870		140,930
Tenant improvement costs per square foot (2)	$	15.20	$	85.89	$	148.81	$	20.64	$	8.87	$	9.62
Leasing commission costs per square foot (2)		7.95		14.81		19.82		8.78		22.44		13.42
Total costs per square foot	$	23.15	$	100.70	$	168.63	$	29.42	$	31.31	$	23.04

(1) Does not include retained tenants that have relocated to new space or expanded into new space.

(2) Assumes all tenant improvement and leasing commissions are paid in the calendar year in which the lease commences, which may be different than the year in which they are actually paid.

(3) Includes retained tenants that have relocated to new space or expanded into new space within our portfolio.

(4) Recent property acquisitions may make a period over period comparison difficult. For a list of the acquisition dates of our properties see page 17.

(5) Redevelopment Tenant Improvement costs include tenant-specific building improvements for square footage designated as space held for redevelopment.

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DIGITAL REALTY TRUST, INC.

Fourth Quarter 2006

Historical Capital Expenditures

	Three Months Ended																Full Year 2005
	12/31/2006		9/30/2006		6/30/2006		3/31/2006		12/31/2005		9/30/2005		6/30/2005		3/31/2005
Recurring capital expenditures (1) (3)	$	1,373,699	$	233,530	$	258,169	$	652,438	$	1,167,052	$	240,025	$	91,049	$	266,974	$	1,765,100
Non-recurring capital expenditures (2) (3)	$	35,971,950	$	10,567,130	$	4,306,049	$	750,817	$	1,689,757	$	1,766,579	$	1,604,007	$	1,352,219	$	6,412,562
Total net rentable square feet at period end excluding redevelopment space		9,381,860		9,111,904		9,132,357		8,135,957		8,051,212		7,864,760		7,791,110		6,303,226		8,051,212
Recurring capital expenditures per square foot	$	0.15	$	0.03	$	0.03	$	0.08	$	0.14	$	0.03	$	0.01	$	0.04	$	0.22
Non-recurring capital expenditures per square foot (2) (3)	$	3.83	$	1.16	$	0.47	$	0.09	$	0.21	$	0.22	$	0.21	$	0.21	$	0.80

(1) Recurring capital expenditures represents non-incremental building improvements required to maintain current revenues. Recurring capital expenditures do not include acquisition capital that was taken into consideration when underwriting the purchase of a building or which are incurred to bring a building up to “operating standard”.

(2) Non-recurring capital expenditures for the three months ended December 31, 2006, September 30, 2006 and June 30, 2006 includes approximately $14.3 million, $8.2 million and $1.9 million, respectively, related to 115 Second Avenue and 3 Corporate Place. These properties are currently unoccupied.

(3) Recent property acquisitions may make a period over period comparison difficult. For a list of the acquisition dates of our properties see page 17.

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DIGITAL REALTY TRUST, INC.

Fourth Quarter 2006

Redevelopment

For the year ended December 31, 2006

Commenced Leases	Rentable Square Feet	Weighted Average Lease Term	Average Annualized Rent ($000) (1)		Annualized Rent per Square Foot		Improvements per Square Foot(2)
Shell	59,232	120	$	1,289,895	$	21.78	$	10.13
Datacenter	55,001	96		3,465,475		63.01		194.69
Total/Weighted Average	114,233	108	$	4,755,370	$	41.63	$	98.99

(1) Gross annualized rent represents the monthly contractual rent under existing leases as of December 31, 2006 multiplied by 12.

(2) Improvements per square foot include Landlord’s costs to improve the space, lease commissions and tenant allowances. This amount does not include any improvement costs paid by the tenant.

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DIGITAL REALTY TRUST, INC.

Fourth Quarter 2006

Management Statements on Non-GAAP Supplemental Measures

Funds from Operations:

We calculate Funds from Operations, or FFO, in accordance with the standards established by the National Association of Real Estate Investment Trusts, or NAREIT. FFO represents net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of property, real estate related depreciation and amortization (excluding amortization of deferred financing costs) and after adjustments for unconsolidated partnerships and joint ventures. Management uses FFO as a supplemental performance measure because, in excluding real estate related depreciation and amortization and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. We also believe that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare our operating performance with that of other REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions, nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our results from operations, the utility of FFO as a measure of our performance is limited. Other REITs may not calculate FFO in accordance with the NAREIT definition and, accordingly, our FFO may not be comparable to such other REITs’ FFO. Accordingly, FFO should be considered only as a supplement to net income as a measure of our performance. FFO for all periods presented in this supplemental information includes the results of 7979 East Tufts Avenue, a property which we classify as held for sale and which we sold on July 12, 2006.

Adjusted Funds From Operations:

We present adjusted funds from operations, or AFFO, as a supplemental operating measure because, when compared year over year, it assesses our ability to fund dividend and distribution requirements from our operating activities. We also believe that, as a widely recognized measure of the operations of REITs, AFFO will be used by investors as a basis to assess our ability to fund dividend payments in comparison to other REITs. We calculate adjusted funds from operations, or AFFO, by adding to or subtracting from FFO (i) non-real estate depreciation, (ii) amortization of deferred financing costs (iii) noncash compensation (iv) loss from early extinguishment of debt (v) straight line rents (vi) fair value of lease revenue amortization (vii) capitalized leasing payroll (viii) recurring tenant improvements and (ix) capitalized leasing commissions. Other equity REITs may not calculate AFFO in a consistent manner. Accordingly, our AFFO may not be comparable to other equity REITs’ AFFO. AFFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance. AFFO for all periods presented in this supplemental information includes the results of 7979 East Tufts Avenue, a property which we classify as held for sale and which we sold on July 12, 2006.

EBITDA and Adjusted EBITDA:

We believe that earnings before interest, income taxes, depreciation and amortization, or EBITDA and Adjusted EBITDA (as defined below), are useful supplemental performance measures because they allow investors to view our performance without the impact or noncash depreciation and amortization or the cost of debt and with respect to Adjusted EBITDA preferred dividends and minority interests. Adjusted EBITDA is EBITDA excluding minority interests and preferred stock dividends. In addition, we believe EBITDA and adjusted EBITDA are frequently used by securities analysts, investors and other interested parties in the evaluation of REITs. Because EBITDA and adjusted EBITDA are calculated before recurring cash charges including interest expense and income taxes, and are not adjusted for capital expenditures or other recurring cash requirements of our business, their utility as a measure of our performance is limited. Accordingly, EBITDA and Adjusted EBITDA should be considered only as supplements to net income (computed in accordance with GAAP) as a measure of our financial performance. Other equity REITs may calculate EBITDA and Adjusted EBITDA differently than we do; accordingly, our EBITDA and Adjusted EBITDA may not comparable to such other REITs’ EBITDA and Adjusted EBITDA. EBITDA and Adjusted EBITDA for all periods presented in this supplemental information include the results of 7979 East Tufts Avenue, a property which we classify as held for sale and which we sold on July 12, 2006.

NOI and Run-rate NOI:

Net Operating Income (NOI)

NOI represents rental revenue and tenant reimbursement revenue less rental property operating and maintenance, property taxes and insurance expenses (as reflected in statement of operations). NOI is commonly used by stockholders, company management and industry analysts as a measurement of operating performance of the company’s rental portfolio. However, because NOI excludes depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions, nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our results from operations, the utility of NOI as a measure of our performance is limited. Other REITs may not calculate NOI in the same manner we do and, accordingly, our NOI may not be comparable to such other REITs’ NOI. Accordingly, NOI should be considered only as a supplement to net income as a measure of our performance.

Run-rate NOI:

Run-rate NOI represents NOI as defined above adjusted for new acquisitions to show an estimate of NOI as if the property had been owned for the entire quarter. Run-rate NOI is commonly used by stockholders, company management and industry analysts as a measurement of future operating performance of the company’s rental portfolio. Run-rate NOI may not be indicative of future performance. Actual performance is subject to risks, uncertainties and assumptions. See the discussion of forward-looking statements on page 3.

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