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): January 7, 2008

DIGITAL REALTY TRUST, INC.

(Exact name of registrant as specified in its charter)

Maryland	001-32336	26-0081711
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)

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 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 7.01 Regulation FD Disclosure.

The information furnished in this Item 7.01 of this Current Report on Form 8-K, including the exhibit attached hereto, 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 Item 7.01 of this Current Report on Form 8-K, including the exhibit attached hereto, 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.

A copy of the materials to be presented at investor meetings to be held during January 2008 is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number	Description
99.1	Materials to be presented at investor meetings during January 2008.

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

Date: January 7, 2008

EXHIBITS

Exhibit Number	Description
99.1	Materials to be presented at investor meetings during January 2008.

EX-99.1

Investor Meetings

January 2008

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 and litigation, 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, estimates of the value of our redevelopment portfolio 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 develop or redevelop properties

acquired for that purpose or unexpected costs related to development or 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

Diverse base of over 444 tenants

consisting of leading global companies

across various industries resulting in over

$400 million in annualized operating

revenues

(1)

Own 70 properties comprising 12.3 million

rsf, which includes 1.9 million rsf

of space

held for redevelopment

(2)

Portfolio occupancy of 95.1% and “same

store”

occupancy of 94.4%

(3)

Assets strategically located in 26 top

markets throughout North America and

Europe

DLR is the leading institutional owner focused on mission-critical

datacenters throughout North America and Europe.

11830 Webb Chapel Road

Dallas, TX

(1)

Annualized operating revenues represents the operating revenues for the third quarter of 2007 multiplied by 4.

(2)

Including property acquisitions as of January 7, 2008, excluding

one property held through an investment in an unconsolidated joint venture.

(3)

Occupancy is as of September 30, 2007, net of redevelopment space.  Same store occupancy includes properties acquired before December 31, 2005, excluding

properties sold in 2006 and 2007.

3

DLR Properties Feature Advanced Technical Systems

Between $500 and $1,000 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

4

DLR Organizational Depth and Breadth

157 employees

(1)

Core capabilities:

–

Acquisitions

–

Sales & Technical Services

Sales

Engineering

Design & Construction

–

Operations

Portfolio Management

Technical Operations

–

Finance

Accounting

Capital Markets

Taxation

Investor Relations

–

Legal

–

Human Resources

Corporate headquarters

–

San Francisco

Regional offices

–

North America

Los Angeles

Phoenix

Dallas

Chicago

Northern Virginia

New York

Boston

–

Europe

London

Dublin

Paris

(1)  As of January 7, 2008

5

DLR’s Competitive Advantage: Dedicated Technical Professionals

Staff of over 75 DLR technical professionals:

–

IT sales team

Corporate sales

–

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

Channel sales

–

Focus on system integrators

–

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.

6

DLR has a Unique Portfolio of Datacenter Properties

Internet Gateways

–

Highly strategic assets that are

extremely difficult to replicate due to their

existing IP network infrastructure

–

Serve as the hub for Internet and data

communications within and between

major metropolitan areas

–

Frequently serve as a super-regional

connection point with multiple anchor

tenants

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

(1)

Calculation based on average annualized rents using in-place leases as of September 30, 2007.

(2)

Includes occupied and vacant square feet.  In most cases DLR either owns the improvements or has the option to require the tenant to restore the space to its

original shell condition at the end of the lease term.

DLR has approximately 7.8 million sf of improved datacenter space

(2)

Portfolio Distribution

(1)

Corporate

Datacenter

39%

Internet Gateway

Datacenter

51%

Non-Technical

10%

7

DLR Owns Over 1,100 MW of Utility Power Capacity

(1)

Top 15 Properties

(2)

:

Property Name

Market

Capacity (MW)

Devon Shafron Drive (3 Buildings)

Northern Virginia

225

350 East Cermak Road

Chicago

100

3 Corporate Place

New York

44

114 Rue Ambroise Croizat

Paris, France

40

2045 & 2055 LaFayette Street

Silicon Valley

40

44470 Chilum Place

Northern Virginia

36

150 South First Street

Silicon Valley

36

1500 Space Park

Santa Clara

34

101 Aquila Way

Atlanta

30

14901 FAA Boulevard

Dallas

25

155 Comtock Street

Santa Clara

25

2401 Walsh Street

Silicon Valley

25

2403 Walsh Street

Silicon Valley

25

4700 Old Ironsides Drive

Silicon Valley

25

8534 Concord Center Drive

Denver

23

Total Power Capacity - Top 15 Properties

733

(1)

Utility Power Capacity is defined as the power that could potentially be provided by the utility company depending upon factors such as peak demand load at the property.

(2)

As of September 30, 2007.

8

DLR Presence in 26 Top Markets

Note:  Table above includes properties owned as of January 7, 2008, excluding one property held through an investment in an unconsolidated joint venture.

7,766,000

590,000

2,279,000

2,395,000

2,502,000

Total Improved

Datacenter RSF

12,281,000

1,169,000

3,584,000

3,852,000

3,676,000

Total RSF

70

12

21

16

21

# of Properties

Total

Europe

East

Midwest

West

Region

9

DLR Properties Support a Variety of Industry Verticals

DLR provides real estate solutions for its diverse tenant base.

Technology

Internet

Enterprise

Communications

Corporate

Enterprise

Financial

10

DLR Tenant Distribution

Tenant

% of Annualized

Rent

Savvis

12.7%

Qwest

8.9%

Equinix

4.0%

tel

x

3.6%

AT&T

3.2%

NTT Verio

2.7%

Comverse Technology, Inc

2.6%

JP Morgan Chase

2.6%

Microsoft

2.3%

Level(3)

2.2%

Total

44.8%

(1)

Calculation based on average annualized rents using in place leases as of September 30, 2007, excluding one property held through an investment in an

unconsolidated joint venture.

(2)

DLR’s Internet Enterprise tenants consist of Microsoft, Yahoo, Google, eBay and Amazon totaling 891,000 square feet.

No

single

tenant

accounts

for

more

than

13%

of

annualized

rent

(1)

.

Communications

Services

28%

IT Services

37%

Internet Enterprise

5%

Professional &

Financial Services

12%

Other Technology

6%

Non-Technology

12%

11

Strong Trends Drive Sustained Demand for DLR Space

Primary Growth Drivers

By 2008, 50% of existing corporate

datacenters will have insufficient power and

cooling capacity to meet the demands of

high-density equipment

(1)

Increased business continuity and records

retention efforts due to federal regulatory,

legislative and litigation requirements

Significant growth in online advertising: up

30% in 2006; expected 19% increase in

2007

(2)

U.S. e-commerce spending increased 24%

during 2006

(3)

HIPAA patient records security and

retention regulations

Other Drivers –

Estimated Five Year CAGRs

(1)

Gartner

25th

Annual

Datacenter

Conference

2006.

(2)

eMarketer.com, February 2007.

(3)

comScore

Networks, 2007.

(4)

IDC (May 2007) estimated growth in Software as a Service (SaaS) from 2006-2011.

(5)

IDC

(April

2007)

estimated

growth

of

video

infrastructure

and

VoIP

markets

from

2006-2011.

(6)

Based on the results of a DLR-commissioned phone and web-based survey conducted by Campos Research and Analysis in the first quarter of 2007 of 150 senior IT

decision-makers at North American companies with over $1 billion in revenue or 5,000 employees.

(7)

Based on the result of a DLR-commissioned phone and web-based survey conducted by Campos Research and Analysis in the third quarter of 2007 of 125 senior IT

decision-makers at European companies with over €1 billion/£667 million (€100 million/£67 million for Irish or Dutch companies) or 5,000 employees.

0%

10%

20%

30%

40%

SaaS

Video on Demand

VoIP

34%

30%

24%

(4)

(5)

(5)

85% of US Enterprises plan to expand their

datacenters with 77% of those expanding in

two or more locations

(6)

82% of European Enterprises plan to

expand their datacenters with 79% of those

expanding in two or more locations

(7)

12

DLR Growth Drivers

Leasing of Turn-Key

Datacenter     and

Powered Base Building

Space

–

Redevelopment

Inventory

Acquisitions

–

Value-Add Income

Producing Properties

–

Vacant Properties for

Redevelopment

DLR growth is derived from two sources.

TM

TM

13

Leasing Drives Internal Growth

YTD as of September 30, 2007, DLR commenced 68 leases totaling 611,000 sf,

contributing approximately $33.3 million in annualized GAAP rent

(1)

.

(1)

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

(2)

Excludes leases for parking garages and rooftops.

$33.3 million

$54.00

611,000

68

Total

$1.0 million

$19.00

52,000

24

Non-Technical

(2)

$15.1 million

$34.00

441,000

10

Powered Base Building™

$17.2 million

$146.00

118,000

34

Turn-Key Datacenter™

Annualized

GAAP Rent

Annualized GAAP

Rent PSF

Total SF

Leased

# of

Leases

Type of Space

Leases Signed YTD as of September 30, 2007: 78 leases totaling 569,000 sf of

space, including 190,000 sf of Turn-Key Datacenter    ,

308,000 sf of Powered

Base Building    , and 71,000 sf of non-technical space, representing annualized

GAAP rent of $38.9 million.

Leases Commenced YTD as of September 30, 2007:

TM

TM

14

$61,617

$64,388

$66,338

$68,516

$75,235

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

3Q2006

4Q2006

1Q2007

2Q2007

3Q2007

Same Store Growth

(1)

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

(2)

Quarterly operating revenues includes rental and tenant reimbursement revenue.

Strong Increase in Same Store Quarterly Operating Revenues

(1)(2)

Same store cash NOI increased to $40.8 million in the 3Q07, up 14.6% from $35.6 million in 3Q06.

15

Case Studies:  DLR’s Value-Add Leasing

(1)

Calculation based on later of acquisition or IPO date of November 2004 and actual annualized net operating income (NOI) as of September 30, 2007. See page 27 for a

description of NOI.

350 East Cermak Road

1100 Space Park Drive

300 Boulevard East

200 Paul Avenue

Property Name

Location

Acquisition / IPO Date

% Change in NOI

from later of

Acquisition or IPO

(1)

Annualized

NOI

(1)

300 Boulevard East

Weehawken, NJ

Nov-04

89.3%

$12,994,000

1100 Space Park

Santa Clara, CA

Nov-04

95.0%

$6,968,000

200 Paul Avenue

San Francisco, CA

Nov-04

32.5%

$15,427,000

350 East Cermak Road

Chicago, IL

May-05

96.2%

$25,116,000

600 West 7th Street

Los Angeles

Nov-04

113.9%

$11,750,000

16

DLR Redevelopment Program

Redevelopment inventory totals 1.9

million rsf

(1)

with potential for up to

1.1 million rsf

of raised floor

datacenter space

(2)

:

–

Approximately 75% of

redevelopment space in income-

producing properties

–

Remaining 25% of

redevelopment space in five

vacant buildings

Redevelopment costs vary by

building:

–

Powered Base Building 

structural upgrades: $35 -

$75

(3)

per rsf

–

Turn-Key Datacenter     and

Build-to-Suit: $520 to $900 per

rsf

(4)

(funding available through

DLR)

(1)

As of January 7, 2008

(2)

Assumes datacenter footprint is 60% of rentable square footage.

(3)

DLR estimate.

(4)

Source: DPR Construction, Inc. (October 2007)

TM

TM

17

Redevelopment Program Progress Report

Construction projects currently underway in 9 U.S. and European markets totaling

approximately

440,000

rentable

square

feet

of

Turn-Key

Datacenter    ,

new

Powered

Base

Building 

shell

construction

and

Build-to-Suit

space

(1)

DLR’s

Turn-Key

Datacenters

–

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

–

Measuring

8,000

–

12,000

square

feet

of

raised-floor

featuring

DLR’s

POD

Architecture

Stabilized income projected over the next 24 months

(1)

As of September 30, 2007

Clonshaugh Industrial Estate, Dublin

TM

TM

TM

TM

18

Cost Per Gross Square Foot

Low

High

Land

(1)

$25

$75

Base Building

Building Shell

$80

$160

Electrical Systems

$280

$460

Mechanical Systems (HVAC)

$125

$215

Datacenter Improvements

Fire Protection

$15

$25

Other Construction / Fees

$100

$200

Sub total

$520

$900

Total Development Costs

$625

$1,135

Cost Components

Source:  DPR Construction, Inc. based on datacenter projects with improvements similar to DLR (October 2007).

(1)

DLR Estimate

Replacement Cost Estimate:

Replacement Cost Illustrates the Value of DLR’s Portfolio

19

$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

$2,740.2

$2,535.5

$750

$1,250

$1,750

$2,250

$2,750

Sep-04

Dec-04

Mar-05

Jun-05

Sep-05

Dec-05

Mar-06

Jun-06

Sep-06

Dec-06

Mar-07

Jun-07

Sep-07

Proven Track Record: Strong Acquisition Activity

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

property acquisitions.

Total Undepreciated

Assets

($000s)

20

(1)

Net rentable square feet figures excludes space held for redevelopment.

(2)

A

leasehold

interest

consisting

of

two

suites

in

111

8th Ave.

(NY)

acquired

from

NYC

Connect.

(3)

Devon Shafron Drive consists of 43881, 43831 & 43791 Devin Shafron Drive (VA).

(4)

9.4 acre development site in suburban London, England with planning permission for a datacenter facility.

(5)

Legal title to these properties is currently held by a 1031 exchange accommodator.

(6)

Includes a $2.3 million earn-out payment made at closing.

(7)

DLR owns a 50% ownership interest in a consolidated joint venture which owns this property. At the time of acquisition, the property was encumbered by $5.5 million of debt,

which DLR guaranteed along with its joint venture partner.

(8)

Includes land that can support the development of datacenter facilities for a potential of up to 290,000 sf.

DLR acquired new properties totaling approximately $367 million in 2007.

2007 Acquisition Activity

Property

Metropolitan Area

Purchase Price

(in millions)

Total Rentable

Square Feet

Total Net

Rentable

Square Feet

Total Square

Feet Held for

Redevelopment

Percentage of

Net Rentable

Square Feet

Occupied

(1)

21110 Ridgetop

Northern Virginia

$17.2

135,500

135,500

-

100%

3011 Lafayette Street

Silicon Valley

$13.7

90,800

-

90,800

-

44470 Chilum

Place

Northern Virginia

$43.1

95,400

95,400

-

100%

111 Eighth Avenue

(2)

New York City

$24.4

33,700

33,700

-

91%

Devon Shafron

Drive

(3)

Northern Virginia

$63.0

432,000

167,000

265,000

100%

Mundells

Roundabout

(4)

London, England

$31.4

-

-

-

-

210 Tucker

(5)

St. Louis, MO

$20.8

(6)

201,600

139,600

62,000

95%

900 Walnut

(5)

St. Louis, MO

$34.5

(6)

112,300

112,300

-

99%

1 Savvis

Parkway

(5)

St. Louis, MO

$27.7

156,000

156,000

-

100%

1500 Space Park Drive

Silicon Valley

$3.7

(7)

49,900

-

49,900

(8)

-

Cressex

1

London, England

$15.4

51,000

-

51,000

-

Naritaweg

52

Amsterdam, NL

$27.0

63,000

63,000

-

100%

Foxboro Business Park

London, England

$45.1

147,000

51,000

96,000

100%

$367.0

1,568,200

953,500

614,700

21

0.6%

4.0%

5.1%

8.5%

15.9%

1.5%

4.6%

4.6%

16.7%

7.3%

26.3%

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

September

30,

2007.

Lease Expiration as a Percentage of Net Rentable Square Feet

17.6% through 2010

The average lease term is approximately 13 years with 7.5 years remaining.

Leases typically contain 3% annual rent bumps.

22

(1)

FFO, AFFO, Adjusted EBITDA and NOI are non-GAAP financial measures. For a description of FFO, AFFO, Adjusted EBITDA and NOI see page 27. 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

27.

For

a

reconciliation

to

net

income

see

pages

28

& 29.

(2)

Adjusted EBITDA for the three months ended March 31, 2007 excludes a gain on sale for 100 Technology Center Drive and 4055 Valley View Lane of approximately $18.0 million. Including

this gain Adjusted EBITDA was $72.9 million for three months ended March 31, 2007.  Adjusted EBITDA for the three months ended September 30, 2006 excludes a gain on sale for 7979 East

Tufts Avenue of $18.0 million. Including this gain, EBITDA was $62.5 million for three months ended September 30, 2006. EBITDA for all periods presented above includes the results of 7979

East Tufts Avenue, a property which we classified as held for sale and which we sold on July 12, 2006.

(3)

Based on most recent quarterly dividend annualized.  Dividend yield based on January 4, 2008 closing stock price of $35.18.

$25.2

$31.1

$33.7

$35.7

$36.6

$38.9

$44.5

$50.4

$54.9

$55.0

$57.1

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

$0.30

$0.37

$0.35

$0.36

$0.36

$0.38

$0.41

$0.48

$0.50

$0.51

$0.51

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

DLR Financial Overview

Increasing NOI

(1)

–

$64.9 million in 3Q07, +3.5% from $62.7 million in 2Q07 and +35.8% from $47.8 million in 3Q06

Well supported dividend

–

3.5% yield

(3)

–

FFO / AFFO payout ratio

(1)

of 56% / 82% for 3Q07

–

Increased quarterly common dividend +8.0% each year since IPO

Strong and Consistent Earnings Growth

(1)(2)

Adjusted EBITDA

FFO per diluted share and unit

(1)

23

DLR Capital Raising Activities

Proven access to capital

–

YTD 2007

Issued 4.025 million shares of common stock, resulting in

$150.5 of net proceeds

Entered into enhanced $650 million revolving credit facility

–

Increased size from $500 million

–

Reduced applicable margin ranges by 12.5 to 25 basis points

–

Extended maturity to 2010

–

Modified covenants to enhance financial flexibility

Issued $175.0 million of 4.375% convertible preferred: 20%

premium

Sold two non-core assets resulting in a total gain on sale of

$18.0 million

Raised approximately $2.4 billion of capital since IPO

24

DLR 2008 Guidance

(1)

2007

revised

projected

Funds

from

Operations

(FFO)

(2)

per

share

guidance:

$2.02

to

$2.04

(1)

Based on third quarter 2007 earnings conference call dated November 7, 2007.

(2)

FFO and AFFO are non GAAP financial measures. For a description of FFO and AFFO see page 27. For a reconciliation to net income see pages 28 & 29.

(3)

Includes

$2.4

million

of

acquisition

related

costs

previously

capitalized,

which

now

must

be

expensed

under

new

accounting

rules

commencing

January

1,

2008.

Internal Growth 

10.2% to 15.0%

FFO

(2)

Per Share Growth

Leasing  Assumptions 

890,000 to  990,000 sq ft of

Turn-Key Datacenter™ &

Powered Base Building™ space

(average gross rent $90 / sq ft)

100,000 to 125,000 sq ft of basic

commercial space (average

gross rent $19 / sq ft)

Acquisitions Assumptions

$300 - $350 million 

o

$100 to $150 million of vacant

properties for redevelopment

o

$200 million of income

producing properties at an

average cap rate of 8.00%

External Growth

2.5% to 3.8%

FFO

(2)

Per Share Growth

12.7% to 18.8%

Overall

Projected

FFO

(2)

Per

Share Growth

•

Capital Expenditure for redevelopment of $340 million

•

Total G&A of $44 million

(3)

2008

projected

FFO

(2)

per

share

guidance:

$2.30

to

$2.40:

25

DLR Employs a Conservative Capital Structure

Weighted average cost of

debt: 5.87%

(5)

; approximately

79%

fixed

rate

debt

(6)

Coverage ratios

(7)

:

–

Debt service:  3.4x

–

Fixed charge: 2.4x

Total Enterprise Value

(1)

$4,293.7 million

Dividend Yield / Rate:  3.5% / $1.24

(1)

Based on 72.1 million shares & OP units outstanding and $35.18 share price as of close of market on January 4, 2008, which is equal to $2.5 billion in equity.

(2)

Excludes $1.8 million of unamortized debt premium for 1125 Energy Park Drive & 731 East Trade Street.

(3)

Credit facility as of January 4, 2008 based on outstanding amount of $298.4 million; fluctuates based on amount outstanding.

(4)

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

(5)

Excluding the equity component of the exchangeable debt, the weighted average cost of debt is 5.72%.

(6)

Includes $172.5M of exchangeable debt and $257.4M of swapped floating rate debt.

(7)

As

of

September

30,

2007;

debt

service

coverage

ratio

is

Adjusted

EBITDA

divided

by

GAAP

interest

expense;

fixed

charge

coverage

ratio

is

Adjusted

EBITDA

divided

by

fixed

charges.

See

page

27

for

a

description

of

Adjusted

EBITDA

and

pages

28

&

29

for

a

reconciliation

of

Adjusted

EBITDA,

GAAP

interest

expense

and

fixed

charge

coverage

ratio.

DLR Capital Structure

Variable Rate

Debt, 7.01%

Fixed Rate

Debt, 25.97%

Preferred,

7.96%

Equity, 59.06%

(3)

(2) (6)

(4)

(1)

27

Definition of non-GAAP financial measures

This presentation includes certain non-GAAP financial measures that management believes are helpful in understanding our business, as further described below. Our

definition and calculation of non-GAAP financial measures may differ from those of other REITs, and, therefore, may not be comparable. The non-GAAP financial

measures should not be considered an alternative to net income or any other GAAP measurement of performance and should not be considered an alternative to cash

flows from operating, investing or financing activities as a measure of liquidity.

Funds from Operations (FFO)

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

ofwhich

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.

Adjusted Funds From Operations (AFFO)

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) non cash 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

operations.

Net Operating Income (NOI) and Cash 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. Cash NOI is NOI less straight-line rents and above and below market rent amortization. Cash NOI is commonly used by stockholders,

company management and industry analysts as a measure of property operating performance on a cash basis. However, because NOI and cash NOI exclude

depreciation and

amortization

and

capture

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

and

cash

NOI

as

measures

of

our

performance

is

limited.

Other

REITs

may

not

calculate

NOI

and

cash

NOI

in

the

same

manner

we

do

and,

accordingly,

our

NOI

and

cash

NOI

may

not

be

comparable

to

such

other

REITs’

NOI

and

cash

NOI.

Accordingly,

NOI

and

cash

NOI

should

be

considered

only

as

supplements

to

net

income

as

measures

of

our

performance.

Earnings

Before

Interest

Taxes

Depreciation

and

Amortization

(EBITDA)

We

present

Earnings

Before

Interest

Taxes

Depreciation

and

Amortization

or

EBITDA

as

a

supplemental

operating

measure

because,

because

in

excluding

interest,

taxes,

depreciation

and

amortization,

it

permits

investors

to

view

income

from

operations

without

the

impact

of

the

cost

of

debt,

non

cash

depreciation

and

amortization

and

taxes.

We

also

believe

that,

as

a

widely

recognized

measure

of

the

performance

of

other

companies

in

the

data

center

industry

that

will

be

used

by

investors

as

a

basis

to

compare

our

operating

performance

with

that

of

others

in

that

industry.

However,

because

EBITDA

excludes

interest,

taxes,

depreciation

and

amortization

and

captures

neither

the

changes

in

the

value

of

our

properties

that

result

from

use

or

market

conditions,

nor

the

current

level

of

capital

expenditures

and

other

capitalized

items,

all

of

which

have

real

economic

effect

and

could

materially

impact

our

results

from

operations,

the

utility

of

EBITDA

as

a

measure

of

our

performance

is

limited.

Accordingly,

EBITDA

should

be

considered

only

as

a

supplement

to

net

income

as

a

measure

of

our

performance.

Adjusted

EBITDA

is

EBITDA

adjusted

for

preferred

dividends

and

minority

interest.

Each of FFO and Adjusted EBITDA exclude items that have real economic effect and could materially impact our results from operations, and therefore the utility of FFO

and Adjusted EBTIDA as a measure of our performance is limited.

Nothing

contained

herein

is

intended

to

revise

or

confirm

the

earnings,

FFO

or

acquisition

guidance

we

discussed

on

our

Earnings

Conference

Call

held

on

November

7,

2007 and available on our website at www.digitalrealtytrust.com.

28

Reconciliation of non-GAAP items to their closest GAAP

Funds from operations

(1)

Q307

Q207

Q107

Q406

Q306

Q206

Q106

FY2006

Q405

Q305

Q205

Q105

FY2005

Net income (loss) available to common stockholders

(224)

$     

$2,591

$18,641

$2,978

$11,342

$1,650

$1,642

$17,612

$1,157

$1,326

$2,136

$1,468

$6,087

Minority interests in operating partnership including

discontinued operations

(27)

310

3,762

1,276

8,464

1,340

1,846

12,926

1,338

1,628

3,143

2,159

8,268

Real estate related depreciation and amortization

(2)

35,216

31,708

29,643

28,055

24,454

20,238

18,185

90,932

18,781

16,929

14,318

12,143

62,171

Real estate related depreciation and amortization related

to investment in unconsolidated joint venture

969

1,010

1,036

796

-

-

-

796

-

-

-

-

-

Gain on sale of assets

-

-

(18,049)

(80)

(18,016)

-

-

(18,096)

-

-

-

-

-

Funds from operations (FFO)

$35,934

$35,619

$35,033

$33,025

$26,244

$23,228

$21,673

$104,170

$21,276

$19,883

$19,597

$15,770

$76,526

Funds from operations (FFO) per diluted share

$       0.51 $   0.51

$    0.50

$   0.48

$    0.41

$   0.38

$   0.36

$     1.63 $    0.36

$    0.35

$   0.37

$    0.30

$    1.37

Net income (loss) per diluted share available to common

stockholders

$          -

$   0.04

$    0.32

$   0.06

$    0.30

$   0.05

$   0.06

$     0.47 $    0.04

$    0.05

$   0.10

$    0.07

$    0.25

Funds from operations (FFO)

$35,934

$35,619

$35,033

$33,025

$26,244

$23,228

$21,673

$104,170

$21,276

$19,883

$19,597

$15,770

$76,526

Non real estate depreciation

129

124

135

118

285

37

71

511

23

28

10

-

61

Amortization of deferred financing costs

1,682

1,321

1,389

1,115

916

937

795

3,763

793

790

707

675

2,965

Non cash compensation

1,103

836

507

491

430

435

431

1,787

335

50

44

52

481

Loss from early extinguishment of debt

-

-

-

6

40

425

57

528

896

-

-

125

1,021

Straight line rents

(7,204)

(5,770)

(5,111)

(5,810)

(3,856)

(4,233)

(3,843)

(17,742)

(4,172)

(3,815)

(2,483)

(2,553)

(13,023)

Above and below market rent amortization

(2,691)

(2,578)

(2,338)

(2,238)

(2,837)

(1,504)

(433)

(7,012)

(632)

(416)

(230)

(439)

(1,717)

Capitalized leasing compensation

(300)

(175)

(175)

(217)

(185)

(888)

(764)

(2,054)

(105)

(549)

(127)

-

(781)

Recurring capital expenditures and tenant improvements

(2,765)

99

(393)

(2,574)

(344)

(338)

(904)

(4,160)

(1,406)

(240)

(732)

(519)

(2,897)

Capitalized leasing commissions

(1,389)

(3,836)

(439)

(3,716)

(1,523)

(1,682)

(265)

(7,186)

(1,535)

(757)

(579)

(180)

(3,051)

Adjusted funds from operations

(1)

$24,499

$25,640

$28,608

$20,200

$19,170

$16,417

$16,818

$72,605

$15,473

$14,974

$16,207

$12,931

$59,585

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

Q307

Q207

Q107

Q406

Q306

Q206

Q106

FY2006

Q405

Q305

Q205

Q105

FY2005

Depreciation and amortization per income statement

$35,345

$31,832

$29,399

$27,290

$23,768

$18,534

$16,537

$86,129

$17,061

$15,340

$12,733

$10,567

$55,701

Depreciation and amortization of discontinued operations

-

-

379

883

971

1,741

1,719

5,314

1,743

1,617

1,595

1,576

6,531

Non real estate depreciation

(129)

(124)

(135)

(118)

(285)

(37)

(71)

(511)

(23)

(28)

(10)

-

(61)

$35,216

$31,708

$29,643

$28,055

$24,454

$20,238

$18,185

$90,932

$18,781

$16,929

$14,318

$12,143

$62,171

Weighted-average

shares

outstanding

-

diluted

69,937

70,229

69,831

69,213

64,397

60,959

59,874

63,870

59,248

57,526

53,106

53,057

55,761

(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).

2007 FFO Reconciliation

(Low -

High)

Net income available to common stockholders per diluted share  

$0.35 -

0.37

Less:

Gain on sale of assets

($0.25)

Add:

Minority interest                                  

$0.01

Real estate depreciation and amortization          

$1.91

Projected FFO per diluted share and unit            

$2.02 –

2.04

2008 FFO Reconciliation

(Low -

High)

Net income available to common stockholders per diluted share   $0.33 -

0.42

Add:

Minority interest                                  

$0.01 -

0.02

Real estate depreciation and amortization          

$1.96

Projected FFO per diluted share and unit

$2.30 –

2.40

29

Reconciliation of non-GAAP items to their closest GAAP

Cash interest expense and fixed charges (including discontinued operations)

Q307

Q207

Q107

Q406

Q306

Q206

Q106

FY2006

Q405

Q305

Q205

Q105

FY2005

Total GAAP interest expense (including

discontinued operations)

$16,683

$15,142

$17,323

$14,569

$14,533

$12,181

$11,388

$52,671

$10,988

$10,724

$9,289

$8,121

$39,122

Capitalized interest

3,096

2,792

1,507

1,114

917

1,058

762

3,851

279

-

-

-

279

Change in accrued interest and other noncash

amounts

(315)

(3,575)

(948)

(3,206)

(2,590)

57

(1,906)

(7,645)

(1,660)

(777)

(1,203)

(705)

(4,345)

Cash interest expense

19,464

14,359

17,882

12,477

12,860

13,296

10,244

48,877

9,607

9,947

8,086

7,416

35,056

Scheduled debt principal payments and preferred

dividends

7,215

6,902

5,085

5,063

4,960

4,567

4,869

19,458

4,914

5,072

4,180

3,109

17,275

Total fixed charges

$26,679

$21,261

$22,967

$17,540

$17,820

$17,863

$15,113

$68,335

$14,521

$15,019

$12,266

$10,525

$52,331

Reconciliation of EBITDA

Q307

Q207

Q107

Q406

Q306

Q206

Q106

FY2006

Q405

Q305

Q205

Q105

FY2005

Net income (loss) available to common

stockholders

(224)

$      

$2,591

$18,641

$2,978

$11,342

$1,650

$1,642

$17,612

$1,157

$1,326

$2,136

$1,468

$6,087

Interest

16,683

15,142

17,323

14,569

14,533

12,181

11,388

52,671

10,988

10,724

9,289

8,121

39,122

Depreciation and amortization

35,345

31,832

29,778

28,173

24,739

20,275

18,256

91,443

18,804

16,957

14,328

12,143

62,232

EBITDA

51,804

49,565

65,742

45,720

50,614

34,106

31,286

161,726

30,949

29,007

25,753

21,732

107,441

Gain on sale of assets, net of minority interests

-

-

15,019

56

10,318

-

-

10,374

-

-

-

-

-

EBITDA, less effect of gain on sale of assets

$51,804

$49,565

$50,723

$45,664

$40,296

$34,106

$31,286

$151,352

$30,949

$29,007

$25,753

$21,732

$107,441

Reconciliation of Adjusted EBITDA

Q307

Q207

Q107

Q406

Q306

Q206

Q106

FY2006

Q405

Q305

Q205

Q105

FY2005

EBITDA

$51,804

$49,565

$65,742

$45,720

$50,614

$34,106

$31,286

$161,726

$30,949

$29,007

$25,753

$21,732

$107,441

Minority interests

(27)

310

3,762

1,276

8,464

1,340

1,846

12,926

1,338

1,628

3,143

2,159

8,268

Preferred stock dividends

5,359

5,167

3,445

3,445

3,445

3,445

3,445

13,780

3,445

3,099

2,199

1,271

10,014

Adjusted EBITDA

57,136

55,042

72,949

50,441

62,523

38,891

36,577

188,432

35,732

33,734

31,095

25,162

125,723

Gain on sale of assets

-

-

18,049

80

18,016

-

-

18,096

-

-

-

-

-

Adjusted EBITDA, less effect of gain on sale of

assets

$57,136

$55,042

$54,900

$50,361

$44,507

$38,891

$36,577

$170,336

$35,732

$33,734

$31,095

$25,162

$125,723

Reconciliation of Net Operating Income (NOI)

Q307

Q207

Q107

Q406

Q306

Q206

Q106

FY2006

Q405

Q305

Q205

Q105

FY2005

Operating income

21,425

$  

22,541

$

21,965

$

20,943

$

18,451

$

17,787

$

17,388

$

74,569

$ 

15,734

$ 

15,986

$ 

15,776

$ 

12,091

$ 

59,587

$ 

Less:

Other revenue

(154)

(247)

-

(197)

-

-

(168)

(365)

(1,432)

(265)

(3,832)

(300)

(5,829)

Add:

Depreciation and amortization

35,345

31,832

29,399

27,290

23,768

18,534

16,537

86,129

17,061

15,340

12,733

10,567

55,701

General and administrative

7,775

8,456

7,210

6,535

4,986

4,674

4,246

20,441

4,425

3,324

2,453

2,413

12,615

Other expenses

495

128

188

173

607

150

181

1,111

73

106

961

477

1,617

Net Operating Income

64,886

$  

62,710

$

58,762

$

54,744

$

47,812

$

41,145

$

38,184

$

181,885

$

35,861

$ 

34,491

$ 

28,091

$ 

25,248

$ 

123,691

$