REITWEEK 2007

NAREIT Investor Forum

June 2007

Foundation of the Digital World

Exhibit 99.1

1

Forward Looking Statements

The information included in this presentation contains forward-looking statements. Such statements are based on

management’s beliefs

and

assumptions

made

based

on

information

currently

available

to

management.

Such

forward

looking statements

include

statements

and

projections

related

to

growth

in

the

Software

as

a

Service

(SaaS)

and

e-

commerce market, the digital communication and distribution market, and the data storage market, online advertising, the

market effects of regulatory requirements, the disaster recovery

market, estimates of sufficiency of power and cooling in

existing datacenters, the replacement cost of our assets, redevelopment costs in our buildings, and time periods to

stabilization of our development space, the effect new leases will have on our rental revenues and results of operations,

lease expiration rates, the effect of leasing and acquisition on

our FFO, and annualized GAAP rent. 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 that may cause actual results to

vary materially. Some of the risks and uncertainties include, among others, the following: adverse economic or real estate

developments in our markets or the technology industry; general and local economic conditions; defaults on or non-

renewal of leases by tenants; increased interest rates and operating costs; our inability to manage domestic and

international growth effectively; difficulty acquiring or operating properties in foreign jurisdictions, changes in foreign laws

and regulations, including those related to taxation and real estate ownership and operation, increased interest rates and

operating costs; inability to acquire new properties (including those we are in the process of acquiring); our failure to obtain

necessary outside financing; increased construction costs; decreased rental rates or increased vacancy rates; difficulties in

identifying properties

to

acquire

and

completing

acquisitions

at

acceptable

return

levels;

our

failure

to

successfully

operate

acquired properties and operations; failure of acquired properties to perform as expected; our failure to successfully

redevelop properties acquired for that purpose or unexpected costs related to redevelopment; our failure to maintain our

status as a REIT; possible adverse changes to tax law; environmental uncertainties and risks related to natural disasters;

environmental or contamination issues at our buildings; financial market fluctuations; changes in foreign currency

exchange rates; risks of operating in foreign countries; and changes in real estate and zoning laws and increases in real

property tax rates.

The risks described above are not exhaustive, and additional factors could adversely affect our

business and

financial

performance,

including

those

discussed

in

our

annual

report

on

Form

10-K

for

the

year

ended

December 31,

2006

and

subsequent

filings

with

the

Securities

and

Exchange

Commission.

We

expressly

disclaim

any

responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise.

2

Digital Realty Trust Overview

Tenants consist of leading global

companies diversified across various

industries

Own 63 properties

(1)

comprising 11.8

million rentable sq ft which includes

1.7 million sq ft of space held for

redevelopment

(2)

Portfolio occupancy of 94.8% and

“same store”

occupancy of 94.4%

(3)

Assets strategically located in 25 top

technology markets throughout North

America and Europe

DLR is a leading institutional owner focused on mission critical

technology properties throughout North America and Europe.

4025 Midway Road

Dallas, TX

(1)

Includes one property held in an unconsolidated joint venture.

(2)

Includes property acquisitions as of May 8, 2007.

(3)

Occupancy is as of March 31, 2007, net of redevelopment space.  Same Store occupancy includes properties acquired before December 31, 2005,

excluding properties sold in 2006 and 2007.

3

DLR Investment Highlights

Specialized focus in dynamic and

growing industries

High quality portfolio that is difficult to

replicate

Proven track record of creating

shareholder value

Conservative and flexible capital

structure

Industry leading domestic and

international datacenter development

and critical facilities management

capabilities

2323 Bryan Street

Dallas, TX

4

DLR Properties Feature Advanced Technical Systems

Between $500 and $1000 psf typically invested in DLR buildings, creating a barrier to

exit for tenants and discouraging speculative new supply.

Power backup/redundancy

Power management/conversion

Precision air cooling/handling

Systems and security controls

5

DLR Presence in 25 Top Markets

(1)

11,768,000

83

63

Total

866,000

10

9

International

10,902,000

73

54

Domestic

Total Rentable

Square Feet

# of Buildings

# of Properties

(2)

(1)

Includes properties owned as of May 8, 2007

(2)

Includes one property held in an unconsolidated joint venture

6

DLR Properties Serve a Variety of Industry Verticals

DLR offers corporate enterprise tenants, IT service providers, and network

carriers flexible, cost-effective and reliable datacenter solutions.

Technology

Internet

Enterprise

Communications

Manufacturing/

Energy/Retail

Financial

7

DLR Tenant Distribution

(1)

Communications Services

31%

IT Services and Internet

Enterprise

40%

Professional & Financial

Services

10%

Other

7%

Non-Technology

12%

(1) Calculation based on average annualized GAAP rents using in place leases as of March 31, 2007, excluding one property held in an unconsolidated

joint venture.

8

DLR is Unique in its Focus on Technology Properties

Corporate Datacenters

–

Storage/server intensive buildings

–

Provide a secure 24x7 environment

for the storage and processing of

mission-critical electronic

information

–

Used to house primary IT

operations: transaction processing,

data storage, disaster recovery,

CRM and email

Internet Gateways

–

Internet and telecom network

intensive buildings

–

Serve as the hub for Internet and

data communications within and

between major metropolitan areas

–

Market-dominant position in their

respective MSAs

–

Frequently serve as a super-

regional connection point with

multiple anchor tenants

(1) Calculation based on average annualized GAAP rents using in place leases as of March 31, 2007.

Internet

Gateways

36%

Non

Technical

11%

Corporate

Datacenters

51%

Portfolio Distribution

(1)

9

Strong Trends Drive Sustained Demand for DLR Space

Other Growth Drivers

By 2008, 50% of existing

corporate data centers will

have insufficient power and

cooling capacity to meet the

demands of high-density

equipment

(4)

Increased federal regulatory

and legislative requirements for

business continuity and

records retention

Disaster Recovery initiatives

prioritized as a result of

Hurricanes Katrina and Rita

HIPAA patient records security

and retention regulations

Significant growth in online

advertising: up 30% in 2006;

expected 19% increase in

2007

(5)

U.S. e-commerce spending

increased 24% during 2006

(6)

(1)

(2)

(3)

Primary Drivers –

Estimated Annual Growth Rates

(1) Gartner (May

2006)

estimated

growth

in

Software

as

a

Service

(SaaS)

from

2006

to

2009

(2) IDC estimate of US VOIP subscriber growth from 2005 to 2009

(3) Wall Street Journal estimate of corporate data storage capacity growth

(4) Gartner 25   Annual Datacenter Conference 2006

(5) eMarketer.com, February 2007

(6) comScore

Networks, 2007

73%

60%

57%

20

40

60

80

SaaS

Digital

Communication

& Distribution

Data Storage

100%

0%

th

10

0%

10%

20%

30%

40%

50%

60%

70%

80%

1Q02

1Q03

1Q04

1Q05

1Q06

1Q07

$0

$100

$200

$300

$400

$500

$600

$700

Source:

Estimates

based

on

reported

cabinet

(net

sellable

and

billing),

square

feet

and

revenue

data

from

Equinix

and

Savvis

as

per

press

releases,

SEC

filings, research

reports

and

internal

DLR

estimates

as

of

March

31,

2007.

Assumes

35

sq

ft

per

cabinet

throughout

period

if

square

feet

not

reported. 

Equinix and

Savvis,

two

leading

managed

service

providers

that

“resell”

space

leased directly from DLR, are experiencing strong growth in revenues and utilization.

Bill Rates and Utilization Rates are Escalating

Revenue PSF

Utilization Rate

Revenue PSF (Utilized)

$518 psf

Revenue PSF (Total)

$148 psf

Utilization Rate

29%

$574 psf

$438 psf

74%

11

DLR Offers Sustained Growth

Acquisitions

Leasing of Turn-Key

Datacenter

TM

Space

Redevelopment Inventory

DLR growth is derived from three sources.

12

$847.2

$1,044.3

$1,137.4

$1,413.4

$1,508.5

$1,593.6

$1,648.2

$1,794.4

$2,066.2

$2,298.7

$2,457.5

$500

$1,000

$1,500

$2,000

$2,500

9/30/2004

12/31/2004

3/31/2005

6/30/2005

9/30/2005

12/31/2005

3/31/2006

6/30/2006

9/30/2006

12/31/2006

3/31/2007

Proven Track Record: Strong Acquisition Activity

Since its IPO, DLR has more than doubled its total assets through

property acquisitions.

Total Undepreciated

Assets

($000s)

13

2005 Through YTD 2007 Acquisitions

Acquired 40+ properties

(1)

totaling over $1.2 billion

Added approximately 6.9 million square feet to total portfolio, including

over 1.7 million square feet of redevelopment inventory

New markets include:

–

Philadelphia

–

St. Paul

–

Chicago

–

Charlotte

–

Amsterdam, Netherlands

–

Geneva, Switzerland

–

Northern Virginia

–

Austin

–

Dublin, Ireland

–

Toronto, Canada

–

Houston

–

Seattle

–

Paris, France

Chicago, Illinois

Paris, France

(1)

Includes one

property

held

as

an

investment

in

an

unconsolidated

joint

venture

14

(1)

Net rentable square feet figures excludes space held for redevelopment.

(2)

AboveNet Portfolio includes 1807 Michael Faraday Court, 8100 Boone Boulevard (VA) and 111 8th Ave.  (NY).

(3)

Held as an investment in an unconsolidated joint venture in which DLR has a 49% interest.

(4)

A leasehold

interest

consisting

of

two

suites

in

111

8 

Ave.

(NY)

acquired

from

NYC

Connect.

(5)

Loudoun Exchange Portfolio consists of 43881, 43831 & 43791 Devin Shafron Drive (VA).

(6)

9.4 acre

development

site

in

suburban

London,

England

with

planning

permission

for

up

to

a

200,000

sf

datacenter

facility.

DLR has acquired approximately $1.2 billion in new properties.

2005 Through YTD 2007 Acquisitions

Purchase

Total Rentable

Net Rentable

Redevelopment

Occupancy

Property

Location

Price (M)

Sq Ft

Sq Ft

(1)

Sq Ft

(Net of Redev)

2005 Acquisitions

$466

3,490,685

2,658,433

832,252

4025 Midway Road

Carrollton, TX

100,590

36,856

63,734

100%

Clonshaugh Industrial Estate

Dublin, Ireland

20,000

20,000

-

100%

Clonshaugh Industrial Estate

Dublin, Ireland

2.6 acres

-

-

N/A

6800 Millcreek Drive

Toronto, Canada

83,758

83,758

-

100%

101 Aquila Way

Atlanta

313,581

313,581

-

100%

12001 North Freeway

Houston

300,705

281,426

19,279

98%

14901 FAA Boulevard

Dallas

263,700

263,700

-

100%

120 E. Van Buren Street

Phoenix

287,514

206,359

81,155

97%

Gyroscoopweg 2E-2F

Amsterdam, Netherlands

55,585

55,585

-

100%

600 Winter Street

Waltham, MA

30,400

30,400

-

100%

2300 NW 89th Place

Miami

64,174

64,174

-

100%

AboveNet Portfolio

(2)

New York & N. Virginia

119,389

119,389

-

100%

2055 East Technology Circle

Tempe, AZ

76,350

-

76,350

N/A

2001 Sixth Avenue

(3)

Seattle, WA

389,460

389,460

-

90%

114 Rue Ambroise Croizat

Paris, France

352,146

122,627

229,519

56%

Blanchardstown Corporate Park

Dublin, Ireland

120,000

120,000

86%

2006 Acquisitions

$553

2,577,352

2,107,315

470,037

21110 Ridgetop Circle

Sterling, VA

135,000

-

135,000

100%

3011 Lafayette Street

Santa Clara, CA

90,780

90,780

N/A

44470 Chillum Place

Ashburn, VA

95,440

-

95,440

100%

NYC Connect (111 8th Ave)

(4)

New York

33,700

33,700

94%

Loudoun Exchange Portfolio

(5)

Ashburn, VA

432,071

167,071

265,000

39%

Garden Shed Mundells

(6)

London, England

-

-

-

N/A

YTD 2007 Acquisitions

$198

786,991

291,551

495,440

Total 2005 through YTD2007 Acquisitions

$1,217

6,855,028

5,057,299

1,797,729

th

15

Leasing Drives Internal Growth

DLR commenced 211 leases during 2006, contributing approximately

$30.0 million

in

annualized

GAAP

rental

revenues.

(1)

(1)

GAAP rental revenues include total rent for both renewals and expansions.

(2)

Excludes leases for parking garages and rooftops.

$0.2 million

$14.00

11,600

7

Non Technical

(2)

$12.0 million

$39.00

308,000

6

Redevelopment

$4.0 million

$70.00

57,000

17

Datacenter

Annualized

GAAP Rent

Annualized

GAAP Rent PSF

Total SF

Leased

# of Leases

Type of Space

In the

first

quarter

of

2007

DLR

executed

leases

for

87,000

sf

of

space,

including

60,000

sf

of

datacenter

and

18,000

sf

of

redevelopment

space.

First Quarter 2007 Leases Commenced:

16

Same Store Growth

(1)

52,000

54,000

56,000

58,000

60,000

62,000

64,000

66,000

68,000

Mar-06

Jun-06

Sep-06

Dec-06

Mar-07

93.0%

93.2%

93.4%

93.6%

93.8%

94.0%

94.2%

94.4%

94.6%

94.8%

95.0%

Quarterly Operating Revenue

Occupancy

($000)

Same Store Quarterly Operating

Revenue

(3)

Increase = 16.6%

Same Store Occupancy

(2)

Increase = 70 bps

(1)

Same store properties were acquired before December 31, 2005, excluding properties sold in 2006 and 2007.

(2)

Same store occupancy excludes redevelopment space until leased.

(3)

Quarterly operating revenue includes rental and tenant reimbursement revenue.

(4)

Calculation

based

on

reported

1Q07

operating

revenue

of

$66.3M

less

$4.1M

straight

line

rent

and

less

$0.7M

for

below/above

rent

amortization.

First quarter

2007

same

store

cash

rent

was

$61.5

million

(4)

17

Case Studies:  DLR’s Value-add Leasing

(1)  Calculation based on IPO date of November 2004 and actual annualized net operating income (NOI) as of March 31, 2007. See page 30 for a discussion of NOI.

350 East Cermak Road

1100 Space Park Drive

200 Paul Avenue

300 Boulevard East

Property Name

Location

Acquisition /

IPO Date

% Change in NOI

from later of

Acquisition or IPO

As of 1Q 07

(1)

200 Paul Avenue

San Francisco, CA

Nov-04

71.8%

1100 Space Park Drive

Santa Clara, CA

Nov-04

97.2%

350 East Cermak Road

Chicago, IL

May-05

44.6%

300 Boulevard East

Weehawken, NJ

Nov-04

98.2%

18

DLR Redevelopment Inventory

Redevelopment inventory totals 1.7

million sf

of vacant space with

potential for up to 1.0 million sf

of

datacenter:

–

Approximately 65% of inventory in

income-producing properties

–

Remaining 35% of inventory in 6

vacant buildings

Redevelopment costs vary by building

–

Base building power, structural

upgrades: $35 -

$50 psf

–

Custom datacenter:  $350 to $800

psf

(funding available through

DLR)

Growth Opportunity

19

Redevelopment Program Progress Report

Construction projects underway in 11 U.S. and European markets totaling over

500,000 rentable square feet of Turn-Key Datacenter    and build-to-suit space

DLR’s Turn-Key Datacenters

–

Move-in ready, physically secure facilities with redundant power and cooling

capabilities

–

Measuring 10,000 –

12,000 square feet of raised-floor featuring DLR’s    

POD Architecture

Strong interest from prospective tenants

Stabilized income projected over the next 36 months

Turn-Key Datacenter™

Built-to-suit

TM

TM

TM

20

DLR’s Competitive Advantage: Dedicated Technical Professionals

Staff of over 50 DLR technical professionals:

–

IT sales team

Focus on end-user, IT professionals (CIO or CTO)

–

Datacenter sales engineers

Provide value engineering and custom design expertise

–

Design and construction experts

Disciplined approach to project management

Volume purchase agreements for equipment and services

Best-in-class engineering and contracting

–

Datacenter facilities management team

Best-in-class operating policies and procedures

Fully-integrated Building Automation Systems

Global preventative maintenance agreements

Operating scale and process-based approach result in significant cost

savings and added value for tenants

DLR possesses the necessary scale to support these specialized professionals

21

Source:  Independent study by CCG Facilities Integration Inc. based on datacenter projects with improvements similar to DLR.

(1)

Infrastructure only. Does not include electronic equipment. Assumes 60% ratio of datacenter to total building with all cost allocated to raised floor area.

(2)

DLR estimate based on Equinix press release dated September 19, 2006.

(3)

Reflects all owned properties as of May 8, 2007.

Replacement Cost Estimate

Replacement Cost Illustrates the Value of DLR’s Portfolio

DLR owns

over

7.6

million

sq

ft

of

improved

datacenter

space.

(3)

Cost per Square Foot

Equinix

(2)

Cost Components

Low

High

Land

$40

$70

Building Shell

60

150

Electrical Systems

$297

$396

Mechanical Systems (HVAC)

92

122

Fire Protection

21

29

Other Construction and Fees

130

173

Sub Total

$540

$720

Total Development Costs

$640

$940

$1,250

Base Building

Data Center

Improvements

(1)

22

1.5%

4.8%

5.5%

7.8%

11.3%

6.2%

6.0%

5.4%

16.8%

7.9%

21.6%

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Thereafter

DLR’s Model Features Long-term, Stable Leases

The stability of our long-term leases complements our growth.

Note:  Excludes

vacant

square

footage

of

0.5

million

square

feet

and

1.7

million

square

feet

of

space

held

for

redevelopment

as

of

March

31,

2007.

Lease expiration as a percentage of net rentable square feet

11.8% in through 2009

The average lease term is approximately 12 years with 7 years remaining.

Leases typically contain 3% annual rent bumps.

23

DLR Financial Overview

Strong

and

consistent

FFO

(1)

growth

–

$1.63 per diluted share and unit for 2006, +19% from 2005

–

$0.50 per diluted share and unit for 1Q07, +39% from 1Q06

and +4% from 4Q06

Increasing NOI

(1)

–

$58.8 million in 1Q07, +7% from $54.7 million in 4Q06 and

+54% from $38.2 million in 1Q06

Well supported dividend

–

2.9% yield

(2)

–

FFO / AFFO

(1)

payout ratio of 57% / 70%(3) for 1Q07

–

Increased quarterly common dividend in 4Q06, +8%

(1)

FFO, AFFO and NOI are non GAAP financial measures. For a description of FFO, AFFO and NOI see page 30.

(2)

Based on most recent quarterly dividend annualized.  Dividend yield based on May 17, 2007 closing stock price of $40.17.

(3)

FFO payout

ratio

is

dividend

declared

per

common

share

and

unit

divided

by

diluted

FFO

per

share

and

unit.

AFFO

payout

ratio

is

dividend

declared

per

common

share and unit divided by diluted AFFO per share and unit. For a

description of FFO and AFFO see page 30. For a

reconciliation to net income see page 31.

24

DLR Capital Raising Activity

Proven access to capital

–

YTD 2007

Raised $175.0 million of 4.375% convertible preferred stock:

20% premium

Sold two non-core assets for estimated total gain on sale of

$18.0 million

–

$900.2 million of capital raised in 2006

Amended credit facility

–

Increased facility size from $350 to $500 million; changed financial

covenants to enhance financial flexibility; added redevelopment

assets to borrowing base to support redevelopment program

Raised $172.5 million of 4.125% convertible debt: 18% premium

Completed 10 mortgage financings totaling $349.4 million

Raised $228.3 million in net proceeds from two common stock

offerings

Increased float by 121.5% from 27.4 million to 60.7 million

shares of common stock outstanding

25

DLR 2007 Guidance -

Update

2007 projected

funds

from

operations

(FFO)

per

share

guidance:

(1)(2)

$1.91 to $1.96

(1)

Based on Company guidance revised in our May 9, 2007 conference call.

(2)

FFO and AFFO are non GAAP financial measures. For a description of FFO and AFFO see page 30. For a reconciliation to net income see page 31.

Internal Growth 

11.2% to 13.0%

FFO

(2)

Per Share Growth

Leasing 

475,000 to  600,000 sq ft of turn-

key & redevelopment space

(gross rent $70 / sq ft)

100,000 to 125,000 sq ft of basic

commercial space (gross rent

$19 / sq ft)

Acquisitions

$300 - $400 million 

o

$110 million of vacant

for redevelopment

o

$190 to $290 million of

income producing at

an average cap rate of

8.25%

External Growth

6.0% to 7.0%

FFO Per Share Growth

17.2% to 20.0%

Overall FFO Per Share Growth

•

Capital Expenditure for redevelopment of $251 million

•

Total G&A of $28.5 million

26

Improving Overall Credit Quality of DLR Portfolio

+

=

+

=

Approximately $18 million of base rental income, or over 8% of overall income, has

experienced an improvement in credit quality.

(1)

As a result of a sublease relationship with Microsoft for 200,000 sq ft of space that is leased directly by Savvis.

(2)

On June 30, 2006, SAVVIS completed the exchange of its Series A Preferred stock for 37.4 million shares of common stock.

(1)(2)

27

DLR’s top

tenants

have

experienced

a

robust

increase

in

equity

capitalization

(1)

Significant Equity Capitalization Improvement in Top Tenants

(1) Increase in equity capitalization calculated as of May 17, 2007 from DLR IPO date of November 1, 2004.

28

DLR Employs a Conservative Capital Structure

Wtd

average cost of debt:

5.84%

(5)

; approximately 93%

fixed

rate

debt

(6)

Coverage ratios

(7)

:

–

Debt service: 3.1x

–

Fixed charge: 2.4X

Periodically refinancing high

cost debt with lower rate,

longer term, fixed rate

financing

Total Enterprise Value

(1)

$4,229.1 million

Dividend Yield / Rate:    2.9% / $1.145

(1)

Based on closing price of $40.17 and shares outstanding of DLR common stock at May 17, 2007.

(2)

Excludes $1.9 million of unamortized debt premium for 1125 Energy Park Drive & 731 East Trade Street.

(3)

Pro forma unsecured credit facility as of April 6, 2007; will fluctuate based on amount drawn on credit facility from time to time.

(4)

Comprised of $175 million of 4.375% convertible preferred stock issued in April 2007.

(5)

Excluding the equity component of the convertible debt, the weighted average cost of debt is 5.66%.

(6)

Includes $172.5M of convertible debt and $250.0M of swapped floating rate debt.

(7)

As of 3/31/07 and ignoring the effect from the gain on sale of two properties, debt service coverage ratio is Adjusted EBITDA divided by cash interest expense;

fixed charge coverage

ratio

is

Adjusted

EBITDA

divided

by

fixed

charges.

See

p.

30

for

a

description

of

Adjusted

EBITDA

and

p.

31

for

a

reconciliation

of

Adjusted

EBITDA,

cash interest expense and fixed charge coverage ratio.

Total Fixed Rate Debt

26%

Total Variable Rate Debt

2%

Preferred

8%

Equity

64%

(2)(6)

(3)

(1)

(4)

31

Reconciliation of non-GAAP items to their closest GAAP

2007 FFO  Reconciliation

(in millions, except per share and unit data)

Low end of

range

High end of

range

Net income before minority interest in operating partnership

$26.4

—

$28.9

Plus: Real estate related depreciation and amortization

126.9

—

128.0

Funds from operations

$153.3

—

$156.9

Less:  Preferred stock dividends

(19.3)

(19.3)

FFO available to common stockholders and unit holders

$134.0

—

$137.6

FFO per diluted share of common stock and unit outstanding

$1.91

—

$1.96

Funds from operations

(1)

Cash interest expense and fixed charges (including discontinued operations)

Q107

Q406

Q306

Q206

Q106

FY2006

FY2005

Q107

Q406

Q306

Q206

Q106

FY2006

FY2005

Net income available to common stockholders

$18,641

$2,978

$11,342

$1,650

$1,642

$17,612

$6,087

Total GAAP interest expense (including

discontinued operations)

$17,323

$14,569

$14,533

$12,181

$11,388

$52,671

$39,122

Capitalized interest

1,507

1,114

917

1,058

762

3,851

279

Minority interests in operating partnership including

discontinued operations

3,762

1,276

8,464

1,340

1,846

12,926

8,268

Change in accrued interest and other noncash

amounts

(948)

(3,206)

(2,590)

57

(1,906)

(7,645)

(4,345)

Real estate related depreciation and amortization

(2)

29,643

28,055

24,454

20,238

18,185

90,932

62,171

Cash interest expense

17,882

12,477

12,860

13,296

10,244

48,877

35,056

Real estate related depreciation and amortization related

to investment in unconsolidated joint venture

1,036

796

-

-

-

796

-

Scheduled debt principal payments and preferred

dividends

5,085

5,063

4,960

4,567

4,869

19,458

17,275

Gain on sale of assets

(18,049)

(80)

(18,016)

-

-

(18,096)

-

Total fixed charges

$22,967

$17,540

$17,820

$17,863

$15,113

$68,335

$52,331

Funds from operations (FFO)

$35,033

$33,025

$26,244

$23,228

$21,673

$104,170

$76,526

Funds from operations (FFO) per diluted share

$       0.50

$       0.48

$       0.41

$       0.38

$       0.36

$       1.63

$       1.37

Reconciliation of EBITDA

Net income per diluted share available to common

stockholders

$       0.32

$       0.06

$       0.30

$       0.05

$       0.06

$       0.47

$       0.25

Q107

Q406

Q306

Q206

Q106

FY2006

FY2005

Funds from operations (FFO)

$35,033

$33,025

$26,244

$23,228

$21,673

$104,170

$76,526

Net income available to common stockholders

$18,641

$2,978

$11,342

$1,650

$1,642

$17,612

$6,087

Non real estate depreciation

135

118

285

37

71

511

61

Amortization of deferred financing costs

1,389

1,115

916

937

795

3,763

2,965

Interest

17,323

14,569

14,533

12,181

11,388

52,671

39,122

Non cash compensation

507

491

430

435

431

1,787

481

Depreciation and amortization

29,778

28,173

24,739

20,275

18,256

91,443

62,232

Loss from early extinguishment of debt

-

6

40

425

57

528

1,021

Straight line rents

(5,111)

(5,810)

(3,856)

(4,233)

(3,843)

(17,742)

(13,023)

EBITDA

65,742

45,720

50,614

34,106

31,286

161,726

107,441

Above and below market rent amortization

(2,338)

(2,238)

(2,837)

(1,504)

(433)

(7,012)

(1,717)

Capitalized leasing compensation

(175)

(217)

(185)

(888)

(764)

(2,054)

(781)

Gain on sale of assets, net of minority interests

15,019

56

10,318

-

-

10,374

-

Recurring capital expenditures and tenant improvements

(393)

(2,574)

(344)

(338)

(904)

(4,160)

(2,897)

Capitalized leasing commissions

(439)

(3,716)

(1,523)

(1,682)

(265)

(7,186)

(3,051)

EBITDA, less effect of gain on sale of assets

$50,723

$45,664

$40,296

$34,106

$31,286

$151,352

$107,441

Adjusted funds from operations

(1)

$28,608

$20,200

$19,170

$16,417

$16,818

$72,605

$59,585

Reconciliation of Adjusted EBITDA

(2) Real estate depreciation and amortization was computed as follows:

Q107

Q406

Q306

Q206

Q106

FY2006

FY2005

EBITDA

$65,742

$45,720

$50,614

$34,106

$31,286

$161,726

$107,441

Q107

Q406

Q306

Q206

Q106

FY2006

FY2005

Depreciation and amortization per income statement

$29,399

$27,290

$23,768

$18,534

$16,537

$86,129

$59,616

Minority interests

3,762

1,276

8,464

1,340

1,846

12,926

8,268

Depreciation and amortization of discontinued operations

379

883

971

1,741

1,719

5,314

2,616

Preferred stock dividends

3,445

3,445

3,445

3,445

3,445

13,780

10,014

Non real estate depreciation

(135)

(118)

(285)

(37)

(71)

(511)

(61)

$29,643

$28,055

$24,454

$20,238

$18,185

$90,932

$62,171

Adjusted EBITDA

72,949

50,441

62,523

38,891

36,577

188,432

125,723

Weighted-average shares outstanding - diluted

69,831

69,213

64,397

60,959

59,874

63,870

55,761

Gain on sale of assets

18,049

80

18,016

-

-

18,096

-

Adjusted EBITDA, less effect of gain on sale of

assets

$54,900

$50,361

$44,507

$38,891

$36,577

$170,336

$107,441

Reconciliation of Net Operating Income (NOI)

Q107

Q406

Q306

Q206

Q106

FY2006

FY2005

Operating income

21,965

$  

20,943

$  

18,451

$  

17,787

$  

17,388

$  

74,569

$  

59,587

$  

Less:

Other revenue

-

(197)

-

-

(168)

(365)

(5,829)

Add:

Depreciation and amortization

29,399

27,290

23,768

18,534

16,537

86,129

55,701

General and administrative

7,210

6,535

4,986

4,674

4,246

20,441

12,615

Other expenses

188

173

607

150

181

1,111

1,617

Net Operating Income

58,762

$  

54,744

$  

47,812

$  

41,145

$  

38,184

$  

181,885

$

123,691

$

(1) Funds from operations and Adjusted Funds from operations for all periods presented above includes the results of properties

sold in 2006 and 2007; 7979 East Tufts Avenue (July 2006), 100 Technology Center Drive (March 2007) and 4055 Valley View

Lane (March 2007).