8-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K/A

(Amendment No. 1)

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported):

April 29, 2014

QTS Realty Trust, Inc.

(Exact name of registrant as specified in its charter)

Maryland	001-36109	46-2809094
(State or other jurisdiction of incorporation)	(Commission File No.)	(I.R.S. Employer Identification No.)

12851 Foster Street Overland Park, KS	66213
(Address of principal executive offices)	(Zip Code)

(913) 814-9988

Registrant’s telephone number, including area code:

Not Applicable

(Former name or former address, if changed since last report.)

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:

¨ 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))

EXPLANATORY NOTE

This Form 8-K/A amends the registrant’s Form 8-K filed on April 29, 2014 (the “Original Form 8-K”) to file the press release that QTS Realty Trust, Inc. (the “Company”) issued on April 29, 2014 as Exhibit 99.1 (the “Issued Press Release”). The press release filed with the Original Form 8-K was an incorrect version of the release and was not issued by the Company. The Issued Press Release is identical to the press release filed with the Original Form 8-K except for the addition of a new section entitled “2014 Guidance” in which the Company confirms the guidance previously disclosed in its Press Release dated February 19, 2014. The Company is also refiling Exhibit 99.2, the First Quarter 2014 Supplemental Information, that was filed with the Original Form 8-K. No changes have been made to Exhibit 99.2 and no other changes have been made to the Original Form 8-K other than as described above.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number		Exhibit Description
	99.1	Press Release dated April 29, 2014
	99.2	First Quarter 2014 Supplemental Information

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.

QTS Realty Trust, Inc.
By:	/s/ Shirley E. Goza
	Shirley E. Goza
	Secretary and General Counsel

April 30, 2014

EXHIBIT INDEX

Exhibit Number		Exhibit Description
	99.1	Press Release dated April 29, 2014
	99.2	First Quarter 2014 Supplemental Information

EX-99.1

Exhibit 99.1

QTS REPORTS FIRST QUARTER 2014 OPERATING RESULTS

OVERLAND PARK, Kan. – April 29, 2014 – QTS Realty Trust, Inc. (“QTS,” the “Company” or the “Successor”) (NYSE: QTS) today announced operating results for the first quarter ended March 31, 2014. The Company completed its initial public offering on October 15, 2013, pursuant to which the Company became the general partner of QualityTech, LP (the “Predecessor”). The following financial data for the three months ended March 31, 2014 is that of the Company. The financial data for the three months ended December 31, 2013 includes financial data on a combined basis for both the Company and its Predecessor and the financial data for the three months ended March 31, 2013 is that of the Predecessor.

First Quarter Highlights

• Reported Operating FFO of $17.3 million in the first quarter of 2014, an increase of 102% compared to the first quarter of 2013. Operating FFO for the first quarter of 2014 on a fully diluted per share basis was $0.47 per share.

• Reported Adjusted EBITDA of $21.6 million in the first quarter of 2014, an increase of 29% compared to the first quarter of 2013.

• Total revenues of $48.9 million recognized in the first quarter 2014, an increase of 18% compared to the first quarter 2013. Monthly Recurring Revenue (“MRR”) as of March 31, 2014 increased by 19% to $14.6 million compared to MRR as of March 31, 2013.

• During the first quarter of 2014 the Company executed new and modified leases aggregating to a net increase of $10.5 million in incremental annualized rent, net of downgrades.

• Reported NOI of $31.5 million in the first quarter of 2014, an increase of 21% compared to the first quarter of 2013.

“I’m pleased to report that QTS has entered 2014 in a very strong position and I am proud of our team’s performance during the first quarter,” said Chad Williams, QTS’ Chairman and Chief Executive Officer. “We continue to grow our business through our fully integrated technology services platform which allows us to deliver differentiated value through our 3C product offering in our mega data center sites. All of this is powered by our people who consistently provide premium customer service and market-leading security and compliance. Our momentum can be seen in our first quarter performance, as well as in our record net incremental leasing activity which is the second highest in QTS’ history.”

Williams added, “As of March 31, 2014, QTS’ booked-not-billed balance was a record $29.9 million of annualized rent, providing visibility to QTS’ future growth and momentum.”

Financial Results

Net income recognized in the first quarter of 2014 was $5.3 million ($0.14 per basic and diluted share) compared to a net loss recognized in the first quarter of 2013 of $2.1 million. QTS generated Operating FFO of $17.3 million in the first quarter of 2014, an increase of approximately 102% compared to $8.5 million for the first quarter of 2013. Additionally, QTS generated $21.6 million of Adjusted EBITDA in the first quarter of 2014,

1    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

an increase of 29% compared to $16.8 million for the first quarter of 2013. MRR as of March 31, 2014 was $14.6 million, an increase of 19% compared to MRR as of March 31, 2013 of $12.2 million, with total revenues increasing by 18% to $48.9 million for the first quarter 2014 compared to $41.5 million for the first quarter 2013.

Leasing Activity

During the first quarter of 2014, QTS entered into customer leases representing approximately $0.9 million of incremental MRR, net of downgrades, (and representing approximately $10.5 million of incremental annualized rent) at a weighted average rental rate of $1,195 per square foot. Although incremental MRR, net of downgrades, for the first quarter of 2014 was in line with the trailing four quarter average of $0.9 million of MRR, it represents the second highest quarter in the Company’s history and at a much higher average rate per square foot in comparison to the trailing four quarter average which was driven by a larger proportion of C2 (Colocation) and C3 (Cloud and Managed Services) space sold in the first quarter of 2014 compared to the four quarter average.

During the first quarter of 2014, QTS renewed leases with a total annualized rent of $5.0 million at an average rent per square foot of $770, which was 8.9% higher than the annualized rent prior to their respective renewals. The Company defines renewals as leases which the customer retains the same amount of space before and after renewal, which facilitates rate comparability. As summarized in more detail in our supplemental information, there is variability in our renewal rates and although this was a solid quarter, renewal rates are expected to continue to increase in the low single digits on average. Rental churn (which is the MRR impact from a customer completely departing the platform in a given period compared to the total MRR at the beginning of the period) for the first quarter of 2014 was 1.4%.

During the first quarter of 2014, QTS commenced customer leases (which includes new customers and also existing customers that renewed their lease term) representing approximately $1.0 million of MRR (and representing approximately $12.2 million of annualized rent) at $558 per square foot. This compares to customer leases representing an aggregate trailing four quarter average of approximately $1.8 million of MRR (representing approximately $21.0 million of annualized rent) at $360 per square foot. The difference in these commencements on a per square foot basis is largely due to the timing and magnitude of C1 lease commencements relative to C2/C3 lease commencements. A more detailed analysis of this activity is set forth in the Company’s supplemental information.

As of March 31, 2014, the booked-not-billed MRR balance (which represents customer leases that have been executed, but for which lease payments have not commenced as of March 31, 2014) was approximately $2.5 million, or $29.9 million of annualized rent. Of this booked-not-billed balance, approximately $0.6 million of MRR was attributable to new customers and approximately $1.9 million of MRR was attributable to existing customers. The booked-not-billed balance is expected to contribute an incremental $9.6 million to revenue in 2014 (representing $15.5 million in annualized revenues), an incremental $3.6 million in 2015 (representing $8.8 million in annualized revenues), and an incremental $5.6 million in annualized revenues thereafter.

Development and Redevelopment Activity

During the first quarter of 2014, the Company brought online approximately 50,000 net rentable square feet (“NRSF”) of raised floor at an aggregate cost of approximately $15 million at the Atlanta-Metro facility. In addition, during the first quarter of 2014 the Company continued redevelopment of the Dallas-Fort Worth, Atlanta – Metro, Richmond, Atlanta – Suwanee and Sacramento facilities. Space related to these redevelopment projects is expected to be ready for its intended use in the second and third quarters of 2014.

2    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

Balance Sheet and Liquidity

As of March 31, 2014, QTS’s total debt balance was $405.5 million (or 4.7x first quarter annualized Adjusted EBITDA) and its liquidity was approximately $320 million, consisting of approximately $312 million of available capacity on its credit facilities and approximately $8 million of cash available on its balance sheet. In February 2014, the Company expanded the capacity of its unsecured credit facility by $50 million, increasing the total revolving credit facility capacity to $400 million.

2014 Guidance

QTS is maintaining its 2014 guidance of Operating FFO in the range of $73.0 million to $77.0 million, or Operating FFO per share of $1.95 to $2.05. Additionally, QTS is maintaining its 2014 guidance for Adjusted EBITDA of $94.0 million to $99.0 million and Capital Expenditures of $150.0 million to $200.0 million.

This guidance is calculated based on revenue growth in the mid to high teens (which ramp during the year), rental churn of 5-8%, and does not contemplate any acquisitions, dispositions or financing activities other than those which have already been disclosed.

Non-GAAP Financial Measures

This release includes certain non-GAAP financial measures that management believes are helpful in understanding the Company’s business, as further described in below.

Conference Call Details

The Company will host a conference call April 30, 2014, at 10:00 a.m., Eastern time (9:00 a.m. Central time) to discuss its financial results, current business trends and market conditions.

The dial-in number for the conference call is (877) 883-0383 (U.S.) or (412) 902-6506 (International). The participant entry number is 1291474# and callers are asked to dial in ten minutes prior to start time. A link to the live broadcast, earnings presentation and the replay will be available on the Company’s website (www.qtsdatacenters.com) under the Investors tab. - See more at: http://investors.qualitytech.com/upcoming-webcasts

About QTS

QTS Realty Trust, Inc. (NYSE:QTS) is a leading owner, developer and operator of state-of-the-art, carrier-neutral, multi-tenant data centers. The Company’s data centers are facilities that house the network and computer equipment of multiple customers and provide access to a range of communications carriers. The Company has a fully integrated platform through which it owns and operates its data centers and provides a broad range of information technology infrastructure solutions. The Company believes that it owns and operates one of the largest portfolios of multi-tenant data centers in the United States, as measured by gross square footage, and has the capacity to more than double its leased raised floor square footage without constructing any new buildings. The Company’s portfolio is currently leased to over 800 customers comprised of companies of all sizes representing an array of industries

QTS Investor Relations Contact

Jeff Berson – Chief Investment Officer

William Schafer – Chief Financial Officer

ir@qtsdatacenters.com

3    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

Forward Looking Statements

Some of the statements contained in this release constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In particular, statements pertaining to the Company’s capital resources, portfolio performance and results of operations contain forward-looking statements. Likewise, all of the statements regarding anticipated growth in funds from operations and anticipated market conditions are forward-looking statements. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions.

The forward-looking statements contained in this release reflect the Company’s current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause actual results to differ significantly from those expressed in any forward-looking statement. The Company does not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: adverse economic or real estate developments in the Company’s markets or the technology industry; national and local economic conditions; difficulties in identifying properties to acquire and completing acquisitions; the Company’s failure to successfully develop, redevelop and operate acquired properties and operations; significant increases in construction and development costs; the increasingly competitive environment in which the Company operates; defaults on or non-renewal of leases by customers; increased interest rates and operating costs, including increased energy costs; financing risks, including the Company’s failure to obtain necessary outside financing; decreased rental rates or increased vacancy rates; dependence on third parties to provide Internet, telecommunications and network connectivity to the Company’s data centers; the Company’s failure to qualify and maintain its qualification as a real estate investment trust; environmental uncertainties and risks related to natural disasters; financial market fluctuations; and changes in real estate and zoning laws and increases in real property tax rates.

While forward-looking statements reflect the Company’s good faith beliefs, they are not guarantees of future performance. The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.

4    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

Combined Consolidated Balance Sheets

(in thousands)

The following financial data as of March 31, 2014 and December 31, 2013 is that of the Company.

	March 31, 2014			December 31, 2013
ASSETS
Real Estate Assets
Land	$	30,601		$	30,601
Buildings and improvements		743,101			728,230
Less: Accumulated depreciation		(147,336	)		(137,725	)
		626,366			621,106
Construction in progress		182,699			146,904
Real Estate Assets, net		809,065			768,010
Cash and cash equivalents		7,928			5,210
Rents and other receivables, net		11,497			14,434
Acquired intangibles, net		4,413			5,396
Deferred costs, net (1)		19,157			19,150
Prepaid expenses		4,804			1,797
Other assets, net (2)		20,157			17,359
TOTAL ASSETS	$	877,021		$	831,356
LIABILITIES
Mortgage notes payable	$	88,294		$	88,839
Unsecured credit facility		314,500			256,500
Capital lease obligations		2,728			2,538
Accounts payable and accrued liabilities		53,737			63,204
Dividends payable		10,832			8,965
Advance rents, security deposits and other liabilities		3,331			3,261
Deferred income		8,105			7,892
Derivative liability		320			453
TOTAL LIABILITIES		481,847			431,652
EQUITY
Common stock, $0.01 par value, 450,133,000 shares authorized, 29,016,774 and 28,972,774 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively		290			289
Additional paid-in capital		319,551			318,834
Accumulated other comprehensive loss		(252	)		(357	)
Accumulated deficit		(8,016	)		(3,799	)
Total stockholders’ equity		311,573			314,967
Noncontrolling interests		83,601			84,737
TOTAL EQUITY		395,174			399,704
TOTAL LIABILITIES AND EQUITY	$	877,021		$	831,356

(1) As of March 31, 2014 and December 31, 2013, deferred costs, net included $7.1 million and $7.3 million of deferred financing costs, respectively, and $12.1 million and $11.9 million of deferred leasing costs, respectively.

(2) As of March 31, 2014 and December 31, 2013, other assets, net primarily included $17.3 million and $14.2 million of corporate fixed assets, respectively, primarily relating to construction of corporate offices, leasehold improvements and corporate software related assets.

5    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

Combined Consolidated Statements of Operations and Comprehensive Income (Loss)

(in thousands)

The following financial data for the three months ended March 31, 2014 is that of the Company. The financial data for the three months ended December 31, 2013 includes financial data on a combined basis for both the Company and its Predecessor and the financial data for the three months ended March 31, 2013 is that of its Predecessor.

	Three Months Ended (unaudited)
	March 31,			December 31,			March 31,
	2014			2013(1)			2013
Revenues:
Rental	$	40,579		$	39,122		$	33,806
Recoveries from customers		3,691			3,173			2,866
Cloud and managed services		4,231			4,703			4,110
Other (2)		442			431			716
Total revenues		48,943			47,429			41,498
Operating expenses:
Property operating costs		16,223			15,820			14,408
Real estate taxes and insurance		1,218			1,188			1,113
Depreciation and amortization		13,247			13,161			10,815
General and administrative (3)		10,778			9,848			9,594
Transaction costs (4)		64			66			—
Total operating expenses		41,530			40,083			35,930
Operating income		7,413			7,346			5,568
Other income and expense:
Interest income		8			1			6
Interest expense		(2,065	)		(2,747	)		(6,550	)
Other income (expense), net (5)		—			(153	)		(1,098	)
Income (loss) before taxes		5,356			4,447			(2,074	)
Tax expense of taxable REIT subsidiaries		(28	)		—			—
Net income (loss)		5,328			4,447			(2,074	)
Net income attributable to noncontrolling interests (6)		(1,130	)		(848	)		—
Net income (loss) attributable to QTS Realty Trust, Inc		4,198			3,599			(2,074	)
Unrealized gain on swap (7)		105			74			72
Comprehensive income (loss)	$	4,303		$	3,673		$	(2,002	)

(1) For the reconciliation of the financial data of the Company and the Predecessor for the three month period ended December 31, 2013, see the Company’s earnings release filed as Exhibit 99.1 to the Form 8-K filed with the Securities and Exchange Commission on February 19, 2014.

(2) Other revenue -Includes straight line rent and sales of scrap metals and other unused materials.

(3) General and administrative expenses – Includes personnel costs, sales and marketing costs, professional fees, travel fees, and other corporate general and administrative expenses. General and administrative expenses were 22.0%, 20.8%, and 23.1% of total revenues for the three month periods ended March 31, 2014, December 31, 2013, and March 31, 2013, respectively.

(4) Transaction costs – For the three months ended March 31, 2014, we incurred $0.1 million in costs related to the examination of potential acquisitions. There were no such costs incurred for the three months ended March 31, 2013.

(5) Other income (expense), net – Generally includes write offs of unamortized deferred financing costs associated with the early extinguishment of certain debt instruments.

(6) Noncontrolling interest – Concurrently with the completion of the initial public offering, QTS Realty Trust, Inc. consummated a series of transactions pursuant to which QTS became the sole general partner and majority owner of QualityTech, LP, which then became its operating partnership. Certain prior owners of QualityTech, LP retained 21.2% of ownership in the operating partnership.

(7) Unrealized gain on swap – For derivative instruments that are accounted for as hedges, or for the effective portions of qualifying hedges, the change in fair value is recorded as unrealized gains (losses) on swap and is included in other comprehensive income (loss).

Center markets

6    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

Reconciliations of Net Income (Loss) to FFO, Operating FFO & Adjusted Operating FFO

(in thousands)

The Company calculates 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), adjusted to exclude gains (or losses) from sales of property, real estate related depreciation and amortization and similar adjustments for unconsolidated partnerships and joint ventures. The Company generally calculates Operating FFO as FFO excluding certain non-recurring and primarily non-cash charges and gains and losses that management believes are not indicative of the results of the Company’s operating real estate portfolio. The Company believes that Operating FFO provides investors with another financial measure that may facilitate comparisons of operating performance and liquidity between periods and, to the extent other REITs calculate Operating FFO on a comparable basis, between the Company and these other REITs. The Company calculates Adjusted Operating FFO by adding or subtracting from Operating FFO items such as: maintenance capital investment, paid leasing commissions, amortization of deferred financing costs, non- real estate depreciation, straight line rent adjustments, and non-cash compensation.

A reconciliation of net income (loss) to FFO, Operating FFO and Adjusted Operating FFO is presented below:

	Three Months Ended
	March 31,			December 31,			March 31,
	2014			2013			2013
FFO
Net income (loss)	$	5,328		$	4,447		$	(2,074	)
Real estate depreciation and amortizaton		11,864			11,766			9,507
FFO		17,192			16,213			7,433
Write off of unamortized deferred finance costs		—			153			1,098
Transaction costs		64			66			—
Operating FFO*		17,256			16,432			8,531
Maintenance Capex		(73	)		(298	)		(759	)
Leasing Commissions paid		(2,249	)		(2,407	)		(1,970	)
Amortization of deferred financing costs		582			582			912
Non real estate depreciation and amortizaton		1,382			1,395			1,308
Straight line rent revenue		(152	)		(149	)		(114	)
Straight line rent expense		75			82			77
Equity-based compensation expense		911			655			375
Adjusted Operating FFO*	$	17,732		$	16,292		$	8,360

* The Company’s calculations of Operating FFO and Adjusted Operating FFO may not be comparable to Operating FFO and Adjusted Operating FFO as calculated by other REITs that do not use the same definition.

7    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

Reconciliations of Net Income (Loss) to EBITDA and Adjusted EBITDA

(in thousands)

The Company calculates EBITDA as net income (loss) excluding interest expense and interest income, provision for income taxes (including income taxes applicable to sale of assets) and depreciation and amortization. The Company believes that EBITDA is another metric that is often utilized to evaluate and compare the Company’s ongoing operating results and also, in part, to assess the value of the Company’s operating portfolio. In addition to EBITDA, the Company calculates an adjusted measure of EBITDA, which the Company refers to as Adjusted EBITDA, as EBITDA excluding write off of unamortized deferred financing costs, gain on extinguishment of debt, transaction costs, equity-based compensation expense, restructuring charge, gain on legal settlement and gain on sale of real estate. The Company believes that Adjusted EBITDA provides investors with another financial measure that can facilitate comparisons of operating performance between periods and between REITs.

A reconciliation of net income (loss) to EBITDA and Adjusted EBITDA is presented below:

	Three Months Ended
	March 31,			December 31,			March 31,
	2014			2013			2013
EBITDA and Adjusted EBITDA
Net income (loss)	$	5,328		$	4,447		$	(2,074	)
Interest expense		2,065			2,747			6,550
Interest income		(8	)		(1	)		(6	)
Tax expense of taxable REIT subsidiaries		28			—			—
Depreciation and amortization		13,247			13,161			10,815
EBITDA		20,660			20,354			15,285
Write off of unamortized deferred finance costs		—			153			1,098
Equity-based compensation expense		911			655			375
Transaction costs		64			66			—
Adjusted EBITDA	$	21,635		$	21,228		$	16,758

8    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

Reconciliations of Net Income (Loss) to Net Operating Income (NOI)

(in thousands)

The Company calculates net operating income, or NOI, as net income (loss), excluding: interest expense, interest income, depreciation and amortization, write off of unamortized deferred financing costs, gain on extinguishment of debt, transaction costs, gain on legal settlement, gain on sale of real estate, restructuring charge and general and administrative expenses. The Company believes that NOI is another metric that is often utilized to evaluate returns on operating real estate from period to period and also, in part, to assess the value of the operating real estate. A reconciliation of net income (loss) to NOI is presented below:

	Three Months Ended
	March 31,			December 31,			March 31,
	2014			2013			2013
Net Operating Income (NOI)
Net income (loss)	$	5,328		$	4,447		$	(2,074	)
Interest expense		2,065			2,747			6,550
Interest income		(8	)		(1	)		(6	)
Depreciation and amortization		13,247			13,161			10,815
Write off of unamortized deferred finance costs		—			153			1,098
Tax expense of taxable REIT subsidiaries		28			—			—
Transaction costs		64			66			—
General and administrative expenses		10,778			9,848			9,594
NOI	$	31,502		$	30,421		$	25,977
Breakdown of NOI by facility:
Atlanta-Metro data center	$	14,402		$	13,654		$	12,184
Atlanta-Suwanee data center		8,174			8,210			6,784
Santa Clara data center		2,730			2,640			2,747
Richmond data center		3,047			2,780			2,267
Sacramento data center		2,324			2,061			1,924
Other data centers		825			1,076			71
NOI	$	31,502		$	30,421		$	25,977

9    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

Reconciliations of Total Revenues to Recognized MRR in the period and MRR at period end

(in thousands)

The Company calculates MRR as monthly contractual revenue under signed leases as of a particular date, which includes revenue from its C1, C2 and C3 rental and cloud and managed services activities, but excludes customer recoveries, deferred set-up fees, variable related revenues, non-cash revenues and other one-time revenues. MRR does not include the impact from booked-not-billed leases (which represent customer leases that have been executed but for which lease payments have not commenced) as of a particular date, unless otherwise specifically noted. The Company calculates recognized MRR as the recurring revenue recognized during a given period, which includes revenue from its C1, C2 and C3 rental and cloud and managed services activities, but excludes customer recoveries, deferred set-up fees, variable related revenues, non-cash revenues and other one-time revenues. Management uses MRR and recognized MRR as supplemental performance measures because they provide useful measures of increases in contractual revenue from customer leases. A reconciliation of total revenues to recognized MRR in the period and MRR at period-end is presented below:

	Three Months Ended
	March 31,			December 31,			March 31,
	2014			2013			2013
Recognized MRR in the period
Total period revenues (GAAP basis)	$	48,943		$	47,429		$	41,498
Less: Total period recoveries		(3,691	)		(3,173	)		(2,866	)
Total period deferred setup fees		(1,219	)		(1,228	)		(1,062	)
Total period other		(878	)		(1,147	)		(1,233	)
Recognized MRR in the period		43,155			41,881			36,337
MRR at period end
Total period revenues (GAAP basis)	$	48,943		$	47,429		$	41,498
Less: Total revenues excluding last month		(32,551	)		(31,212	)		(27,301	)
Total revenues for last month of period		16,392			16,217			14,197
Less: Last month recoveries		(1,136	)		(1,240	)		(1,035	)
Last month deferred setup fees		(410	)		(370	)		(366	)
Last month other		(272	)		(469	)		(576	)
MRR at period end	$	14,574		$	14,138		$	12,220

10    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

EX-99.2

Exhibit 99.2

Table of Contents

Overview
Company Profile	3
Financial Statements
Combined Consolidated Balance Sheets	4
Combined Consolidated Statements of Operations and Comprehensive Income (Loss)	5
Summary of Financial Data	6
Reconciliations of Return on Invested Capital (ROIC)	7
Implied Enterprise Value	8
Operating Portfolio
Data Center Properties	9
Redevelopment Costs Summary	10
Redevelopment Summary	11
NOI by Facility and Capital Expenditure Summary	12
Leasing Statistics – Signed Leases	13
Leasing Statistics – Renewed Leases and Rental Churn	14
Leasing Statistics – Commenced Leases	15
Lease Expirations	16
Largest Customers	17
Industry Segmentation	18
Product Diversification	19
Capital Structure
Debt Summary and Debt Maturities	20
Interest Summary	21
Appendix	22

1    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

Forward Looking Statements

Some of the statements contained in this document constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In particular, statements pertaining to the Company’s capital resources, portfolio performance and results of operations contain forward-looking statements. Likewise, all of the statements regarding anticipated growth in funds from operations and anticipated market conditions are forward-looking statements. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions.

The forward-looking statements contained in this document reflect the Company’s current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause actual results to differ significantly from those expressed in any forward-looking statement. The Company does not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: adverse economic or real estate developments in the Company’s markets or the technology industry; national and local economic conditions; difficulties in identifying properties to acquire and completing acquisitions; the Company’s failure to successfully develop, redevelop and operate acquired properties and operations; significant increases in construction and development costs; the increasingly competitive environment in which the Company operates; defaults on or non-renewal of leases by customers; increased interest rates and operating costs, including increased energy costs; financing risks, including the Company’s failure to obtain necessary outside financing; decreased rental rates or increased vacancy rates; dependence on third parties to provide Internet, telecommunications and network connectivity to the Company’s data centers; the Company’s failure to qualify and maintain its qualification as a real estate investment trust; environmental uncertainties and risks related to natural disasters; financial market fluctuations; and changes in real estate and zoning laws and increases in real property tax rates.

While forward-looking statements reflect the Company’s good faith beliefs, they are not guarantees of future performance. The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.

2    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

Company Profile

3    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

Combined Consolidated Balance Sheets

(in thousands)

The following financial data as of March 31, 2014 and December 31, 2013 is that of the Company.

	March 31, 2014			December 31, 2013
ASSETS
Real Estate Assets
Land	$	30,601		$	30,601
Buildings and improvements		743,101			728,230
Less: Accumulated depreciation		(147,336	)		(137,725	)
		626,366			621,106
Construction in progress		182,699			146,904
Real Estate Assets, net		809,065			768,010
Cash and cash equivalents		7,928			5,210
Rents and other receivables, net		11,497			14,434
Acquired intangibles, net		4,413			5,396
Deferred costs, net (1)		19,157			19,150
Prepaid expenses		4,804			1,797
Other assets, net (2)		20,157			17,359
TOTAL ASSETS	$	877,021		$	831,356
LIABILITIES
Mortgage notes payable	$	88,294		$	88,839
Unsecured credit facility		314,500			256,500
Capital lease obligations		2,728			2,538
Accounts payable and accrued liabilities		53,737			63,204
Dividends payable		10,832			8,965
Advance rents, security deposits and other liabilities		3,331			3,261
Deferred income		8,105			7,892
Derivative liability		320			453
TOTAL LIABILITIES		481,847			431,652
EQUITY
Common stock, $0.01 par value, 450,133,000 shares authorized, 29,016,774 and 28,972,774 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively		290			289
Additional paid-in capital		319,551			318,834
Accumulated other comprehensive loss		(252	)		(357	)
Accumulated deficit		(8,016	)		(3,799	)
Total stockholders’ equity		311,573			314,967
Noncontrolling interests		83,601			84,737
TOTAL EQUITY		395,174			399,704
TOTAL LIABILITIES AND EQUITY	$	877,021		$	831,356

(1) As of March 31, 2014 and December 31, 2013, deferred costs, net included $7.1 million and $7.3 million of deferred financing costs, respectively, and $12.1 million and $11.9 million of deferred leasing costs, respectively.

(2) As of March 31, 2014 and December 31, 2013, other assets, net primarily included $17.3 million and $14.2 million of corporate fixed assets, respectively, primarily relating to construction of corporate offices, leasehold improvements and corporate software related assets.

4    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

Combined Consolidated Statements of Operations and Comprehensive Income (Loss)

(in thousands)

The following financial data for the three months ended March 31, 2014 is that of the Company. The financial data for the three months ended December 31, 2013, includes financial data on a combined basis for both the Company and its Predecessor and the financial data for the three months ended March 31, 2013 is that of the Predecessor.

	Three Months Ended (unaudited)
	March 31,			December 31,			March 31,
	2014			2013 (1)			2013
Revenues:
Rental	$	40,579		$	39,122		$	33,806
Recoveries from customers		3,691			3,173			2,866
Cloud and managed services		4,231			4,703			4,110
Other (2)		442			431			716
Total revenues		48,943			47,429			41,498
Operating expenses:
Property operating costs		16,223			15,820			14,408
Real estate taxes and insurance		1,218			1,188			1,113
Depreciation and amortization		13,247			13,161			10,815
General and administrative (3)		10,778			9,848			9,594
Transaction costs (4)		64			66			—
Total operating expenses		41,530			40,083			35,930
Operating income		7,413			7,346			5,568
Other income and expense:
Interest income		8			1			6
Interest expense		(2,065	)		(2,747	)		(6,550	)
Other income (expense), net (5)		—			(153	)		(1,098	)
Income (loss) before taxes		5,356			4,447			(2,074	)
Tax expense of taxable REIT subsidiaries		(28	)		—			—
Net income (loss)		5,328			4,447			(2,074	)
Net income attributable to noncontrolling interests (6)		(1,130	)		(848	)		—
Net income (loss) attributable to QTS Realty Trust, Inc		4,198			3,599			(2,074	)
Unrealized gain on swap (7)		105			74			72
Comprehensive income (loss)	$	4,303		$	3,673		$	(2,002	)

(1) For the reconciliation of the financial data of the Company and the Predecessor for the three month period ended December 31, 2013, see the Company’s earnings release filed as Exhibit 99.1 to the Form 8-K filed with the Securities and Exchange Commission on February 19, 2014.

(2) Other revenue – Includes straight line rent and sales of scrap metals and other unused materials.

(3) General and administrative expenses – Includes personnel costs, sales and marketing costs, professional fees, travel fees, and other corporate general and administrative expenses. General and administrative expenses were 22.0%, 20.8%, and 23.1% of total revenues for the three month periods ended March 31, 2014, December 31, 2013, and March 31, 2013, respectively.

(4) Transaction costs – For the three months ended March 31, 2014, we incurred $0.1 million in costs related to the examination of potential acquisitions. There were no such costs incurred for the three months ended March 31, 2013.

(5) Other income (expense), net – Generally includes write offs of unamortized deferred financing costs associated with the early extinguishment of certain debt instruments.

(6) Noncontrolling interest – Concurrently with the completion of the initial public offering, QTS Realty Trust, Inc. consummated a series of transactions pursuant to which QTS became the sole general partner and majority owner of QualityTech, LP, which then became its operating partnership. Certain prior owners of QualityTech, LP retained 21.2% of ownership in the operating partnership.

(7) Unrealized gain on swap – For derivative instruments that are accounted for as hedges, or for the effective portions of qualifying hedges, the change in fair value is recorded as unrealized gains (losses) on swap and is included in other comprehensive income (loss).

5    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

Summary of Financial Data

(in thousands, except share, per share and operating portfolio statistics data)

Our financial and operating data for the three months ended March 31, 2014, and as of March 31, 2014 and December 31, 2013 is that of the Company. The financial data for the three months ended December 31, 2013 includes financial and operating data on a combined basis for both the Company and its Predecessor. The financial data for the three months ended March 31, 2013 is that of the Predecessor.

	Three Months Ended
	March 31,			December 31,			March 31,
Summary of Results	2014			2013			2013
Total revenue	$	48,943		$	47,429		$	41,498
Net income (loss)		5,328			4,447			(2,074	)
Other Data
FFO	$	17,192		$	16,213		$	7,433
Operating FFO		17,256			16,432			8,531
Adjusted Operating FFO		17,732			16,292			8,360
Recognized MRR in the period		43,155			41,881			36,337
MRR (at period end)		14,574			14,138			12,220
EBITDA		20,660			20,354			15,285
Adjusted EBITDA		21,635			21,228			16,758
NOI		31,502			30,421			25,977
NOI as a % of revenue		64.4	%		64.1	%		62.6	%
Adjusted EBITDA as a % of revenue		44.2	%		44.8	%		40.4	%
Annualized ROIC		15.8	%		15.7	%		15.2	%
General and administrative expenses as a % of revenue		22.0	%		20.8	%		23.1	%

Balance Sheet Data	March 31, 2014			December 31, 2013
Real estate at cost	$	956,401		$	905,735
Net investment in real estate		809,065			768,010
Total assets		877,021			831,356
Credit facilities, mortgages payables, and capital leases		405,522			347,877
Debt to last quarter annualized Adjusted EBITDA		4.7x			4.1x
Debt to Undepreciated real estate assets		42.4	%		38.4	%
Debt to Implied Enterprise Value		30.5	%		27.6	%

Operating Portfolio Statistics	March 31, 2014			December 31, 2013
Built out square footage:
Raised floor		740,109			689,587
Leasable raised floor (1)		541,484			485,546
Leased raised floor		501,534			446,353
Total Raw Shell:
Total		3,779,519			3,779,519
Basis-of-design raised floor space (1)		1,806,246			1,804,777
Data center properties		10			10
Basis of design raised floor % developed		41.0	%		38.2	%
Data center % occupied		92.6	%		91.9	%

(1) See definition in Appendix.

6    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

Reconciliations of Return on Invested Capital (ROIC)

(in thousands)

Our data for the three months ended March 31, 2014, and as of March 31, 2014 and December 31, 2013 is that of the Company. The data for the three months ended December 31, 2013 includes data on a combined basis for both the Company and its Predecessor. The data for the three months ended March 31, 2013 is that of the Predecessor.

Return on Invested Capital (ROIC)	Three Months Ended
	March 31,			December 31,			March 31,
	2014			2013			2013
NOI	$	31,502		$	30,421		$	25,977
Annualized NOI		126,008			121,684			103,908
Average Undepreciated Real Estate Assets and other Net Fixed Assets Placed in Service		795,423			776,729			684,407
Annualized ROIC		15.8	%		15.7	%		15.2	%
Calculation of Average Undepreciated Real Estate Assets and other Net Fixed Assets Placed in Service	As of
Undepreciated Real Estate Assets and other Net Fixed Assets Placed in Service	March 31, 2014			December 31, 2013			March 31, 2013
Real Estate Assets, net	$	809,065		$	768,011		$	680,140
Less: Construction in progress		(182,699	)		(146,905	)		(114,506	)
Plus: Accumulated depreciation		147,336			137,725			110,969
Plus: Other fixed assets, net		17,273			7,292			4,929
Plus: Acquired intangibles, net		4,413			5,397			7,610
Plus: Leasing Commissions, net		12,081			11,858			9,817
Total as of period end	$	807,469		$	783,378		$	698,959
Average undepreciated real estate assets and other net fixed assets as of reporting period (1)	$	795,423		$	776,729		$	684,407

(1) Calculated by using quarterly balance of each account.

7    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

Implied Enterprise Value

Implied Enterprise Value as of March 31, 2014:
Total Shares Outstanding:
Class A Common Stock		28,883,774
Class B Common Stock		133,000
Total Shares Outstanding		29,016,774
Units of Limited Partnership (1)		7,820,916
Options to purchase Class A Common Stock (2)		59,974
Fully Diluted Total Shares and Units of Limited Partnership outstanding		36,897,664
Share price as of March 31, 2014	$	25.09
Market equity capitalization (in thousands)	$	925,762
Debt (in thousands)		405,522
Implied Enterprise Value (in thousands)	$	1,331,284

(1) Includes 23,916 of operating partnership units representing the “in the money” value of Class O LTIP units on an “as if” converted basis

(2) Includes options to purchase 59,974 shares of Class A Common Stock of QTS Realty Trust Inc. representing the “in the money” value options on an “as if” converted basis.

8    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

Data Center Properties

(in thousands, except NRSF data)

The following table presents an overview of the portfolio of data center properties that the Company owns or leases, referred to herein as our data center properties, based on information as of March 31, 2014:

Property	Year Acquired (1)		Gross Square Feet (2)		Operating Net Rentable Square Feet (Operating NRSF) (3)								% Leased (7)			Annualized Rent (8)		Available Utility Power (MW) (9)		Basis of Design Raised Floor NRSF		% Raised Floor Developed
					Raised Floor (4)		Office & Other (5)		Supporting Infrastructure (6)		Total
Richmond, VA		2010		1,318,353		84,511		27,214		113,091		224,816		80.1	%	$	14,957,828		110		556,595		15.2	%
Atlanta, GA (Metro)		2006		968,695		342,568		28,851		308,527		679,946		99.6	%	$	66,939,876		72		527,216		65.0	%
Dallas, TX		2013		698,000		—		—		—		—		N/A	%	$	0		140		292,000		—	%
Suwanee, GA		2005		367,322		155,422		5,981		99,760		261,163		85.1	%	$	43,088,938		36		214,422		72.5	%
Santa Clara, CA**		2007		135,322		55,494		1,347		45,721		102,562		96.3	%	$	20,906,658		11		80,347		69.1	%
Jersey City, NJ*		2006		122,448		31,503		14,220		40,944		86,667		75.6	%	$	10,705,539		7		52,744		59.7	%
Sacramento, CA		2012		92,644		45,595		2,947		25,535		74,077		89.2	%	$	12,923,358		8		57,906		78.7	%
Overland Park, KS*		2003		32,706		2,493		—		5,338		7,831		80.3	%	$	698,442		1		2,493		100.0	%
Miami, FL		2008		30,029		19,887		—		6,592		26,479		60.2	%	$	4,427,636		4		19,887		100.0	%
Wichita, KS		2005		14,000		2,636		2,854		8,510		14,000		100.0	%	$	239,220		1		2,636		100.0	%
Total				3,779,519		740,109		83,414		654,018		1,477,541		92.6	%	$	174,887,495		390		1,806,246		41.0	%

(1) Represents the year a property was acquired or, in the case of a property under lease, the year our initial lease commenced for the property.

(2) With respect to our owned properties, gross square feet represents the entire building area. With respect to leased properties, gross square feet represents that portion of the gross square feet subject to our lease. This includes 172,319 square feet of QTS office and support space, which is not included in operating NRSF.

(3) Represents the total square feet of a building that is currently leased or available for lease plus developed supporting infrastructure, based on engineering drawings and estimates, but does not include space held for redevelopment or space used for our own office space.

(4) Represents management’s estimate of the portion of NRSF of the facility with available power and cooling capacity that is currently leased or readily available to be leased to customers as data center space based on engineering drawings.

(5) Represents the operating NRSF of the facility other than data center space (typically office and storage space) that is currently leased or available to be leased.

(6) Represents required data center support space, including mechanical, telecommunications and utility rooms, as well as building common areas.

(7) Calculated as data center raised floor that is subject to a signed lease for which billing has commenced as of March 31, 2014 divided by leasable raised floor based on the current configuration of the properties (501,534 square feet as of March 31, 2014), expressed as a percentage.

(8) The Company defines annualized rent as MRR multiplied by 12. The Company calculates MRR as monthly contractual revenue under executed contracts as of a particular date, which includes revenue from our C1, C2 and C3 rental activities and cloud and managed services, but excludes customer recoveries, deferred set up fees and other one-time and variable revenues. MRR does not include the impact from booked not billed contracts as of a particular date, unless otherwise specifically noted. Annualized rent is presented for leases commenced as of March 31, 2014.

(9) Represents installed utility power and transformation capacity that is available for use by the facility as of March 31, 2014.

* Represents facilities that we lease.

** Subject to long term ground lease.

NOTE: Excludes our facility at Lenexa, Kansas, which is not an operating data center.

9    QTS Q1 Earnings 2014 Contact: IR@Qtsdatacenters.com

Redevelopment Costs Summary

(in thousands, except NRSF data)

The under construction table below summarizes our outlook for development projects which we expect to complete by December 31, 2014 (in millions). During the first quarter of 2014, 50,000 square feet was placed in service at our Atlanta-Metro facility. The majority of capital in this plan is discretionary. In addition to the projects completed in the first quarter of 2014, this table reflects modifications to our capital plan as of March 31, 2014, relating to our plan to operate our facilities at higher efficiency levels and to better match new capacity with lease-up at each facility .

	Under Construction Costs (1)
Property	Actual (2)		Estimated Cost to Completion (3)		Total		Expected Completion date
Dallas - Fort Worth	$	40	$	16	$	56		Q3 2014
Atlanta - Metro		38		9		47		Q2 2014
Richmond		27		2		29		Q3 2014
Sacramento		5		3		8		Q3 2014
Atlanta - Suwanee		—		2		2		Q2 2014
Totals	$	110	$	32	$	142

(1) In addition to projects currently under construction, our near term redevelopment projects are expected to be delivered in a modular manner, and we currently expect to invest additional capital to complete these near term projects. The ultimate timing and completion of, and the commitment of capital to, our future redevelopment projects is within our discretion and will depend upon a variety of factors, including the availability of financing and our estimation of the future market for data center space in each particular market.

(2) Actual for NRSF under construction through March 31, 2014. In addition to the $110 million of construction costs incurred through March 31, 2014 for redevelopment expected to be completed by December 31, 2014, as of March 31, 2014 we had incurred $73 million of additional costs (including acquisition costs and other capitalized costs) for other redevelopment projects that are expected to be completed after December 31, 2014.

(3) Represents management’s estimate of the additional costs required to complete the current NRSF under development. There may be an increase in costs if customers’ requirements exceed our current basis of design.

10    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

Redevelopment Summary

(in thousands, except NRSF data)

The following redevelopment table presents an overview of our redevelopment pipeline, based on information as of March 31, 2014. This table shows our ability to increase our raised floor of 740,109 square feet by approximately 2.5 times to over 1,800,000 square feet:

Raised Floor NRSF Overview as of March 31, 2014
Property	Current NRSF in Service		Under Construction (1)		Future Available (2)		Basis of Design NRSF		Approximate Adjacent Acreage of Land (3)
Richmond		84,511		22,084		450,000		556,595		111.1
Atlanta Metro		342,568		50,448		134,200		527,216		6.0
Dallas Fort Worth		0		26,000		266,000		292,000		15.0
Atlanta Suwanee		155,422		30,000		29,000		214,422		15.4
Santa Clara		55,494		—		24,853		80,347		—
Sacramento		45,595		9,000		3,311		57,906		—
Jersey City		31,503		—		21,241		52,744		—
Miami		19,887		—		—		19,887		—
Wichita		2,636		—		—		2,636		—
Overland Park		2,493		—		—		2,493		—
Totals		740,109		137,532		928,605		1,806,246		147.5

(1) Reflects NRSF at a facility for which the initiation of substantial activities to prepare the property for its intended use on or before December 31, 2014.

(2) Reflects NRSF at a facility for which the initiation of substantial activities to prepare the property for its intended use on or after December 31, 2014.

(3) The total cost basis of adjacent land, which is the land available for the future development, is approximately $8 million. This is included in land on the Combined Consolidated Balance Sheets. The Basis of Design NRSF does not include any buildout on the adjacent land.

11    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

NOI by Facility and Capital Expenditure Summary

(in thousands, except NRSF data)

The Company calculates net operating income, or NOI, as net income (loss), excluding: interest expense, interest income, depreciation and amortization, write off of unamortized deferred financing costs, gain on extinguishment of debt, transaction costs, gain on legal settlement, gain on sale of real estate, restructuring charge and general and administrative expenses. The Company believes that NOI is another metric that is often utilized to evaluate returns on operating real estate from period to period and also, in part, to assess the value of the operating real estate. The breakdown of NOI by facility is shown below:

	Three Months Ended
	March 31, 2014		December 31, 2013		March 31, 2013
Breakdown of NOI by facility:
Atlanta-Metro data center	$	14,402	$	13,654	$	12,184
Atlanta-Suwanee data center		8,174		8,210		6,784
Santa Clara data center		2,730		2,640		2,747
Richmond data center		3,047		2,780		2,267
Sacramento data center		2,324		2,061		1,924
Other data centers		825		1,076		71
NOI	$	31,502	$	30,421	$	25,977

Capital expenditures incurred related to real estate assets are summarized as follows:

	Real Estate Capital Expenditures (1)
	Three Months Ended March 31,
	2014		2013
Redevelopment	$	46,324	$	31,674
Acquisitions		—		21,173
Maintenance capital expenditures		73		759
Other capitalized costs		4,268		2,993
Total capital expenditures	$	50,665	$	56,599

(1) Does not include capitalized leasing commissions included in deferred costs, acquired intangibles or other management related fixed assets included in other assets.

12    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

Leasing Statistics – Signed Leases

(in thousands)

The mix of sales has significant impact on quarterly rates, both within major product segments and for overall blended leasing rates. QTS rate performance will vary quarter to quarter based on the mix of deals sold – C1 Custom Data Center, C2 Colocation (Cabinet, Cage and Suite), and C3 Cloud and Managed Services categories all vary on a rate per square foot basis. The amounts below include renewals when there was a change in square footage rented, but not renewals where square footage remained consistent before and after renewal (See renewal table on page 14 for such renewals).

During the first quarter of 2014, the Company signed 301 new and modified leases aggregating to $13.5 million of annualized rent which includes new leased revenue plus revenue from modified renewals. Removing annualized modified renewal MRR and deducting period downgrades results in $10.5 million in incremental annualized rent. The average rent per square foot was approximately $1,195 per square foot which compares to a trailing four quarter average rate per square foot of approximately $330. Overall first quarter 2014 new/modified lease rates are higher than the trailing four quarter average due to considerably lower proportion of C1 business in the quarter.

The prior four quarter average of $330 per square foot is below overall installed base rates as a function of mega-C1 customer upgrades sold in first quarter of 2013. As these C1 customers ramp their deployment over 2013 and 2014, we expect marginal pressure on overall blended C1 rates. A mega-C1 customer returned a significant amount of space in the fourth quarter of 2013 with a smaller reduction in MRR, resulting in higher effective rates per square foot, which will help overall blended C1 rates moving forward. Fourth quarter 2013 C1 rates reflect the discounts we have provided to our largest customers and are not indicative of the rest of our C1 business which typically purchases much smaller power increments (500KW-1MW versus multiple MW contracts reflected in the second half of 2013).

Annualized Rent of New and Modified Leases represent total MRR associated with all new and modified leases for the respective periods for the purposes of computing annualized rent rates per square foot during the period. Incremental Annualized Rent, Net of Downgrades reflects net incremental MRR signed during the period for purposes of tracking incremental revenue contribution.

	Period			Number of Leases		Total Leased sq ft		Annualized Rent per Leased sq ft		Annualized Rent of New and Modified Leases		Incremental Annualized Rent, Net of Downgrades
New/modified leases signed – Total		Q1 2014			301		11,293	$	1,195	$	13,492,164	$	10,514,660
		P4QA	*		331		47,805		330		15,793,314		10,760,303
		Q4 2013			285		40,632		351		14,241,606		9,252,764
		Q3 2013			351		23,138		566		13,086,021		8,230,201
		Q2 2013			355		17,151		748		12,822,584		8,324,853
		Q1 2013			334		110,298		209		23,023,046		17,233,394
New/modified leases signed – C1		Q1 2014			14		872	$	753	$	656,784
		P4QA	*		12		39,951		179		7,150,197
		Q4 2013			15		34,354		187		6,434,898
		Q3 2013			11		11,446		235		2,695,290
		Q2 2013			11		7,920		291		2,301,818
		Q1 2013			10		106,085		162		17,168,784
New/modified leases signed – C2/C3		Q1 2014			287		10,421	$	1,232	$	12,835,374
		P4QA	*		320		7,854		1,101		8,643,117
		Q4 2013			270		6,278		1,244		7,806,708
		Q3 2013			340		11,692		889		10,390,731
		Q2 2013			344		9,231		1,140		10,520,766
		Q1 2013			324		4,213		1,390		5,854,262

* Average of prior 4 quarters

Note: Figures above do not include cost recoveries. In general, C1 customers reimburse QTS for certain operating costs wheras C2/C3 customers are on a gross lease basis. As a result, pricing and resulting per square foot rates for the C2/C3 customers includes the recovery of such operating costs.

The following table outlines the booked-not-billed (“BNB”) balance as of March 31, 2014 and how that will affect revenue in subsequent years:

Booked-not-billed (“BNB”)	2014		2015		Thereafter		Total
MRR	$	1,288,197	$	731,380	$	469,892	$	2,489,469
Incremental revenue		9,604,845		3,583,643		5,638,709
Annualized revenue		15,458,361		8,776,557		5,638,709		29,873,627

We estimate the cost to provide the space, power, connectivity and other service to the customer contracts which had not billed as of March 31, 2014 would be approximately $30 million. This estimate generally includes C1 customers with newly contracted space of more than 3,300 square feet. The space, power, connectivity and other service provided to customers that contract for smaller amounts of space is generally provided by existing space which was previously developed.

13    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

Leasing Statistics – Renewed Leases and Rental Churn

(in thousands)

The mix of sales has significant impact on quarterly rates, both within major product segments and for overall blended renewal rates. QTS rate performance will vary quarter to quarter based on the mix of deals sold – C1 Custom Data Center, C2 Colocation, and C3 Cloud and Managed Services categories all vary on rate per square foot basis.

Consistent with our 3C strategy and business model, the renewal rates below reflect total MRR per square foot including all subscribed services. For comparability, we include only those customers that have maintained consistent space footprints in the computations below. All customers with space changes are incorporated into new/modified leasing statistics and rates.

The overall blended rate for renewals signed in the first quarter of 2014 was 8.9% higher than the rates for those customers immediately prior to renewal. The actual change in the first quarter of 2014 renewal rates compares to a prior four quarter average decrease of 0.4%, which reflects the impact of 3 significant C2/C3 renewals signed in the first 2 quarters of 2013. These leases were extended at lower total effective rates as a function of service changes associated with the customer deployments. Overall renewal rate increases in the preceding four quarters would have been 2.2% without the impact of these first half 2013 lease renewals.

C1 renewal rates were flat in the first quarter of 2014. C2/C3 rates were up 10.6% in the first quarter of 2014 and up 0.1% over preceding four quarters. Without the impact of the three leases noted above, C2/C3 renewal rates would have increased 2.6% in the preceding four quarters.

Rental Churn (which we define as MRR lost to complete termination of customer services in a given period compared to total MRR at the beginning of the period) for the first quarter of 2014 was 1.4%.

	Period			Number of renewed leases		Total Leased sq ft		Annualized rent per leased sq ft		Annualized Rent		Rent Change (1)
Renewed Leases – Total		Q1 2014			56		6,558	$	770	$	5,049,624		8.9	%
		P4QA	*		55		5,967		888		5,198,781		-0.4	%
		Q4 2013			50		3,795		922		3,497,992		-1.1	%
		Q3 2013			47		6,812		783		5,335,293		8.0	%
		Q2 2013			68		7,713		795		6,128,460		-1.8	%
		Q1 2013			53		5,548		1,051		5,833,380		-4.5	%
Renewed Leases – C1		Q1 2014			1		2,500	$	301	$	753,240		0.0	%
		P4QA	*		2		3,119		476		1,484,166		8.3	%
		Q4 2013			0		—		—		—		0.0	%
		Q3 2013			2		3,119		476		1,484,166		8.3	%
		Q2 2013			0		—		—		—		0.0	%
		Q1 2013			0		—		—		—		0.0	%
Renewed Leases – C2/C3		Q1 2014			55		4,058	$	1,059	$	4,296,384		10.6	%
		P4QA	*		54		5,187		953		4,827,740		0.1	%
		Q4 2013			50		3,795		922		3,497,992		-1.1	%
		Q3 2013			45		3,693		1,043		3,851,127		8.0	%
		Q2 2013			68		7,713		795		6,128,460		-1.8	%
		Q1 2013			53		5,548		1,051		5,833,380		-4.5	%

(1) Calculated as the percentage change of the rent per square foot immediately before renewal when compared to the rent per square foot immediately after renewal.

* Average of prior 4 quarters

14    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

Leasing Statistics – Commenced Leases

(in thousands)

The mix of sales across C1, C2 and C3 has significant impact on quarterly rates, both within major product segments and for overall blended commencement rates. QTS rate performance will vary quarter to quarter based on the mix of deals sold. C1 Custom Data Center, C2 Colocation , and C3 Cloud and Managed Services categories all vary on rate per square foot basis.

During the first quarter of 2014, we commenced customer leases (which includes both new customers and existing customers that extended their lease terms) representing approximately $12.2 million of annualized rent at $558 per square foot. This compares to customer leases representing an aggregate trailing four quarter average of approximately $21.0 million of annualized rent at $360 per square foot. The trailing four quarter average rates reflect the impact of significant C1 lease commencements (higher volume at lower rates).

Initial commencements from a large C1 deal booked in the first quarter of 2013 impacted average C1 commencement rates for the trailing four quarters as well as the first quarter of 2014. Pricing for this strategic customer reflects the unique power commitment and lease size.

C2/C3 average commencement rate for the first quarter of 2014 was $1,021 versus the trailing four quarter average of $1,074 and reflect the impact of several large C2 customers on overall rates. Related metrics reflect the presence of these large commencements and their larger footprint pricing economics—new MRR totaled $0.9 million ($10.8 million annualized) versus trailing average of $1.1 million ($13.4 million annualized).

	Period			Number of leases		Total Leased sq ft		Annualized rent per leased sq ft		Annualized Rent
Leases commenced – Total		Q1 2014			307		21,941	$	558	$	12,246,796
		P4QA	*		361		58,476		360		21,034,597
		Q4 2013			356		99,123		280		27,714,462
		Q3 2013			417		72,516		324		23,524,566
		Q2 2013			387		16,891		792		13,372,729
		Q1 2013			283		45,373		430		19,526,631
Leases commenced – C1		Q1 2014			22		11,394	$	130	$	1,480,149
		P4QA	*		28		45,997		166		7,635,227
		Q4 2013			25		85,533		158		13,536,139
		Q3 2013			31		56,878		152		8,635,316
		Q2 2013			29		6,775		198		1,343,731
		Q1 2013			25		34,801		202		7,025,724
Leases commenced – C2/C3		Q1 2014			285		10,547	$	1,021	$	10,766,647
		P4QA	*		333		12,479		1,074		13,399,370
		Q4 2013			331		13,590		1,043		14,178,324
		Q3 2013			386		15,638		952		14,889,250
		Q2 2013			358		10,116		1,189		12,028,998
		Q1 2013			258		10,572		1,182		12,500,907

* Average of prior 4 quarters

15    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

Lease Expirations

C1 leases are typically 5-7 years with the majority of C1 lease expirations occurring in 2016 and beyond. C2/C3 leases are typically 3 years in duration, thus the majority of C2/C3 lease expirations are in 2014 and 2015. The following table sets forth a summary schedule of the lease expirations as of March 31, 2014 at the properties in the Company’s portfolio. Unless otherwise stated in the footnotes, the information set forth in the table assumes that customers exercise no renewal options and all early termination rights are exercised:

Year of Lease Expiration (1)	Number of Leases Expiring (2)		Total Raised Floor of Expiring Leases		% of Portfolio Leased Raised Floor			Annualized Rent (3)		% of Portfolio Annualized Rent			C1 as % of Portfolio Annualized Rent			C2 as % of Portfolio Annualized Rent			C3 as % of Portfolio Annualized Rent
Month-to- Month (4)		351		21,576		4	%		13,666,513		8	%		1	%		6	%		1	%
2014		739		39,042		8	%		29,995,413		17	%		3	%		12	%		2	%
2015		745		47,802		10	%		36,998,038		21	%		2	%		18	%		1	%
2016		605		57,313		11	%		31,195,783		18	%		5	%		12	%		1	%
2017		133		54,048		11	%		16,599,369		9	%		7	%		2	%		1	%
2018		104		235,584		47	%		33,415,331		19	%		17	%		1	%		0	%
After 2018		59		44,809		9	%		13,017,049		7	%		5	%		1	%		1	%
Portfolio Total		2,736		500,174		100	%	$	174,887,495		100	%		41	%		52	%		7	%

(1) Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement customers with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

(2) Represents each agreement with a customer signed as of March 31, 2014 for which billing has commenced; a lease agreement could include multiple spaces and a customer could have multiple leases.

(3) Annualized rent is presented for leases commenced as of March 31, 2014. The Company defines annualized rent as MRR multiplied by 12. The Company calculates MRR as monthly contractual revenue under signed leases as of a particular date, which includes revenue from our C1, C2 and C3 rental and cloud and managed services activities, but excludes customer recoveries, deferred set-up fees, variable related revenues, non-cash revenues and other one-time revenues. MRR does not include the impact from booked-not-billed leases as of a particular date, unless otherwise specifically noted. This amount reflects the annualized cash rental payments. It does not reflect the accounting associated with any free rent, rent abatements or future scheduled rent increases and also excludes operating expense and power reimbursements.

(4) Consists of customers whose leases expired prior to March 31, 2014 and have continued on a month-to-month basis.

16    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

Largest Customers

As of March 31, 2014, the Company’s portfolio was leased to over 800 customers comprised of companies of all sizes representing an array of industries, each with unique and varied business models and needs. The following table sets forth information regarding the ten largest customers in the portfolio based on annualized rent as of March 31, 2014:

Principal Customer Industry	Number of Locations		Annualized Rent (1)		% of Portfolio Annualized Rent			Weighted Average Remaining Lease Term (Months) (2)
Internet		1	$	14,059,937		8.0	%		55
Internet		1		9,644,400		5.5	%		55
Financial Services		1		4,318,740		2.5	%		34
Financial Services		1		3,640,053		2.1	%		16
Information Technology		3		3,331,861		1.9	%		22
Financial Services		2		3,263,309		1.9	%		44
Information Technology		1		3,175,608		1.8	%		111
Professional Services		1		3,171,180		1.8	%		14
Internet (3)		2		3,115,429		1.8	%		1
Information Technology		2		3,064,734		1.8	%		10
Total / Weighted Average			$	50,785,250		29.0	%		42

(1) Annualized rent is presented for leases commenced as of March 31, 2014. We define annualized rent as MRR multiplied by 12. We calculate MRR as monthly contractual revenue under signed leases as of a particular date, which includes revenue from our C1, C2 and C3 rental and cloud and managed services activities, but excludes customer recoveries, deferred set-up fees, variable related revenues, non-cash revenues and other one-time revenues. MRR does not include the impact from booked-not-billed leases as of a particular date. This amount reflects the annualized cash rental payments. It does not reflect any free rent, rent abatements or future scheduled rent increases and also excludes operating expense and power reimbursements.

(2) Weighted average based on customer’s percentage of total annualized rent expiring and is as of March 31, 2014.

(3) This customer is deployed across two QTS data centers; the Company and the customer are jointly working on finalizing their renewal requirements for a balanced product mix and returns across the two deployments.

17    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

Industry Segmentation

The following table sets forth information relating to the industry segmentation as of March 31, 2014:

The following table sets forth information relating to the industry segmentation as of December 31, 2013:

18    QTS Q1 Earnings 2014 Contact: IR@qtsdatacenters.com

Product Diversification

The following table sets forth information relating to the distribution of leases at the properties, by type of product offering, as of March 31, 2014:

(1) As of March 31, 2014, C1 customers renting over 6,600 square feet represented $35.9 million of annualized C1 MRR, C1 customers renting between 3,300 and 6,600 square feet represented $19.4 million of annualized C1 MRR and C1 customers renting below 3,300 square feet represented $15.7 million of annualized C1 MRR. As of March 31, 2014, C1 customers’ median used square footage was 3,342 square feet.

The following table sets forth information relating to the distribution of leases at the properties, by type of product offering, as of December 31, 2013:

(1) As of December 31, 2013, C1 customers renting over 6,600 square feet represented $34.5 million of annualized C1 MRR, C1 customers renting between 3,300 and 6,600 square feet represented $19.4 million of annualized C1 MRR and C1 customers renting below 3,300 square feet represented $14.3 million of annualized C1 MRR. As of December 31, 2013, C1 customers’ median used square footage was 3,271 square feet.

19    QTS Q1 Earnings 2014 Contact: IR@Qtsdatacenters.com

Debt Summary and Debt Maturities

(in thousands)

	March 31, 2014		December 31, 2013
Unsecured Credit Facility	$	314,500	$	256,500
Richmond Credit Facility		70,000		70,000
Atlanta-Metro Equipment Loan		18,294		18,839
Total (1)	$	402,794	$	345,339

(1) Exclusive of capital lease obligations which totaled $2.7 million and $2.5 million as of March 31, 2014 and December 31, 2013, respectively.

As of March 31, 2014

Debt instruments	2014		2015		2016		2017		2018		Thereafter		Total
Unsecured Credit Facility (1)	$	—	$	—	$	—	$	89,500	$	225,000	$	—	$	314,500
Richmond Credit Facility (2)		—		70,000		—		—		—		—		70,000
Atlanta-Metro Equipment Loan		1,694		2,397		2,567		2,748		2,943		5,945		18,294
Total	$	1,694	$	72,397	$	2,567	$	92,248	$	227,943	$	5,945	$	402,794

(1) Revolving portion of the Unsecured Credit Facility has a stated maturity of May 1, 2017 with an option to extend for one additional year.

(2) Richmond Credit Facility has a stated maturity of December 18, 2015 with an option to extend for one additional year.

20    QTS Q1 Earnings 2014 Contact: IR@Qtsdatacenters.com

Interest Summary

(in thousands)

	Three Months Ended
	March 31,			December 31,			March 31,
	2014			2013			2013
Interest expense and fees	$	2,911		$	3,171		$	6,513
Swap interest		161			156			83
Amortization of deferred financing costs		582			582			912
Capitalized interest (1)		(1,589	)		(1,162	)		(958	)
Total interest expense	$	2,065		$	2,747		$	6,550

(1) The weighted average interest rate for the three months ended March 31, 2014, December 31, 2013, and March 31, 2013 was 3.75%, 4.59%, and 5.49%, respectively. As of March 31, 2014 and December 31, 2013 our weighted average coupon interest rate was 2.79% and 2.90%, respectively.

21    QTS Q1 Earnings 2014 Contact: IR@Qtsdatacenters.com

Appendix

Non-GAAP Financial Measures

This document includes certain non-GAAP financial measures that management believes are helpful in understanding the Company’s business, as further described below.

The Company considers the following non-GAAP financial measures to be useful to investors as key supplemental measures of the Company’s performance: (1) FFO; (2) Operating FFO; (3) Adjusted Operating FFO; (4) MRR; (5) EBITDA; and (6) Adjusted EBITDA. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income or loss and cash flows from operating activities as a measure of the Company’s operating performance and liquidity. FFO, Operating FFO, MRR, NOI, EBITDA and Adjusted EBITDA, as calculated by us, may not be comparable to FFO, Operating FFO, MRR, NOI, EBITDA and Adjusted EBITDA as reported by other companies that do not use the same definition or implementation guidelines or interpret the standards differently from us.

Definitions

C1 – Custom Data Center. Power costs are passed on to customers (metered power); generally 3,000 square feet or more of raised floor; lease term of 5 to 10 years; customers are large corporations, government agencies, and global Internet businesses.

C2 – Colocation. Power overages charged separately; specified kW included in lease; up to 3,000 square feet of raised floor; lease term of up to 3 years; customers are large corporations, small and medium businesses and government agencies.

C3 – Cloud and Managed Services. Power bundled with service; Small amounts of space; customers rent managed virtual servers; lease term up to 3 years; customers are large corporations, small and medium businesses and government agencies.

Booked-not-billed (“BNB”). The Company defines booked-not-billed as customer leases that have been signed, but for which lease payments have not yet commenced.

Leasable raised floor. The Company defines leasable raised floor as the amount of raised floor square footage that the Company has leased plus the available capacity of raised floor square footage that is in a leasable format as of a particular date and according to a particular product configuration. The amount of leasable raised floor may change even without completion of new redevelopment projects due to changes in the Company’s configuration of C1, C2 and C3 product space.

Basis-of-design floor space. The Company defines basis-of-design floor space as the total data center raised floor potential of its existing data center facilities.

22    QTS Q1 Earnings 2014 Contact: IR@Qtsdatacenters.com

Operating NRSF. Represents the total square feet of a building that is currently leased or available for lease plus developed supporting infrastructure, based on engineering drawings and estimates, but does not include space held for redevelopment or space used for the Company’s own office space.

The Company. Refers to QTS Realty Trust, Inc., a Maryland corporation, together with its consolidated subsidiaries, including QualityTech, LP.

Historical Predecessor. Refers to QualityTech, LP, our operating partnership.

FFO, Operating FFO and Adjusted Operating FFO

The Company considers funds from operations, or FFO, to be a supplemental measure of its performance which should be considered along with, but not as an alternative to, net income (loss) and cash provided by operating activities as a measure of operating performance and liquidity. The Company calculates 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), adjusted to exclude gains (or losses) from sales of property, real estate related depreciation and amortization and similar adjustments for unconsolidated partnerships and joint ventures. The Company’s 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.

Due to the volatility and nature of certain significant charges and gains recorded in the Company’s operating results that management believes are not reflective of its core operating performance and liquidity, management computes an adjusted measure of FFO, which the Company refers to as Operating FFO. The Company generally calculates Operating FFO as FFO excluding certain non-recurring and often non-cash charges and gains and losses that management believes are not indicative of the results of the Company’s operating real estate portfolio. The Company believes that Operating FFO provides investors with another financial measure that may facilitate comparisons of operating performance and liquidity between periods and, to the extent they calculate Operating FFO on a comparable basis, between REITs.

Adjusted Operating Funds From Operations “Adjusted Operating FFO” is a non-GAAP measure that is used as a supplemental operating measure specifically for comparing year over year ability to fund dividend distribution from operating activities. Adjusted Operating FFO is used by the Company as a basis to address cash flow and its ability to fund its dividend payments. The Company calculates Adjusted Operating FFO by adding or subtracting from Operating FFO items such as: maintenance capital investment, paid leasing commissions, amortization of deferred financing costs, non- real estate depreciation, straight line rent adjustments, and non-cash compensation.

The Company offers these measures because it recognizes that FFO, Operating FFO and Adjusted Operating FFO will be used by investors as a basis to compare its operating performance and liquidity with that of other REITs. However, because FFO, Operating FFO and Adjusted Operating FFO exclude real estate depreciation and amortization and capture neither the changes in the value of the Company’s properties that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance

23    QTS Q1 Earnings 2014 Contact: IR@Qtsdatacenters.com

of its properties, all of which have real economic effect and could materially impact its financial condition, cash flows and results of operations, the utility of FFO, Operating FFO and Adjusted Operating FFO as measures of its operating performance and liquidity is limited. The Company’s calculation of FFO may not be comparable to measures calculated by other companies who do not use the NAREIT definition of FFO or do not calculate FFO in accordance with NAREIT guidance. In addition, the Company’s calculations of FFO, Operating FFO and Adjusted Operating FFO are not necessarily comparable to FFO, Operating FFO and Adjusted Operating FFO as calculated by other REITs that do not use the same definition or implementation guidelines or interpret the standards differently from us. FFO, Operating FFO and Adjusted Operating FFO are non-GAAP measures and should not be considered a measure of the Company’s results of operations or liquidity or as a substitute for, or an alternative to, net income (loss), cash provided by operating activities or any other performance measure determined in accordance with GAAP, nor is it indicative of funds available to fund its cash needs, including our ability to make distributions to our stockholders.

	Three Months Ended
	March 31,			December 31,			March 31,
	2014			2013			2013
FFO
Net income (loss)	$	5,328		$	4,447		$	(2,074	)
Real estate depreciation and amortization		11,864			11,766			9,507
FFO		17,192			16,213			7,433
Write off of unamortized deferred finance costs		—			153			1,098
Transaction costs		64			66			—
Operating FFO *		17,256			16,432			8,531
Maintenance Capex		(73	)		(298	)		(759	)
Leasing Commissions paid		(2,249	)		(2,407	)		(1,970	)
Amortization of deferred financing costs		582			582			912
Non real estate depreciation and amortization		1,382			1,395			1,308
Straight line rent revenue		(152	)		(149	)		(114	)
Straight line rent expense		75			82			77
Equity-based compensation expense		911			655			375
Adjusted Operating FFO *	$	17,732		$	16,292		$	8,360

* The Company’s calculations of Operating FFO and Adjusted Operating FFO may not be comparable to Operating FFO and Adjusted Operating FFO as calculated by other REITs that do not use the same definition.

Monthly Recurring Revenue (MRR)

The Company calculates MRR as monthly contractual revenue under signed leases as of a particular date, which includes revenue from its C1, C2 and C3 rental and cloud and managed services activities, but excludes customer recoveries, deferred set-up fees, variable related revenues, non-cash revenues and other one-time revenues. MRR does not include the impact from booked-not-billed leases as of a particular date, unless otherwise specifically noted.

24    QTS Q1 Earnings 2014 Contact: IR@Qtsdatacenters.com

Separately, the Company calculates recognized MRR as the recurring revenue recognized during a given period, which includes revenue from its C1, C2 and C3 rental and cloud and managed services activities, but excludes customer recoveries, deferred set-up fees, variable related revenues, non-cash revenues and other one-time revenues.

Management uses MRR and recognized MRR as supplemental performance measures because they provide useful measures of increases in contractual revenue from the Company’s customer leases. MRR and recognized MRR should not be viewed by investors as alternatives to actual monthly revenue, as determined in accordance with GAAP. Other companies may not calculate MRR or recognized MRR in the same manner. Accordingly, the Company’s MRR and recognized MRR may not be comparable to other companies’ MRR and recognized MRR. MRR and recognized MRR should be considered only as supplements to total revenues as a measure of its performance. MRR and recognized MRR should not be used as measures of the Company’s results of operations or liquidity, nor is it indicative of funds available to meet its cash needs, including its ability to make distributions to its stockholders.

	Three Months Ended
	March 31,			December 31,			March 31,
	2014			2013			2013
Recognized MRR in the period
Total period revenues (GAAP basis)	$	48,943		$	47,429		$	41,498
Less: Total period recoveries		(3,691	)		(3,173	)		(2,866	)
Total period deferred setup fees		(1,219	)		(1,228	)		(1,062	)
Total period other		(878	)		(1,147	)		(1,233	)
Recognized MRR in the period		43,155			41,881			36,337
MRR at period end
Total period revenues (GAAP basis)	$	48,943		$	47,429		$	41,498
Less: Total revenues excluding last month		(32,551	)		(31,212	)		(27,301	)
Total revenues for last month of period		16,392			16,217			14,197
Less: Last month recoveries		(1,136	)		(1,240	)		(1,035	)
Last month deferred setup fees		(410	)		(370	)		(366	)
Last month other		(272	)		(469	)		(576	)
MRR at period end	$	14,574		$	14,138		$	12,220

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA

The Company calculates EBITDA as net income (loss) adjusted to exclude interest expense and interest income, provision for income taxes (including income taxes applicable to sale of assets) and depreciation and amortization. Management believes that EBITDA is useful to investors in evaluating and facilitating comparisons of the Company’s operating performance between periods and between REITs by removing the impact of its capital structure (primarily interest expense) and asset base charges (primarily depreciation and amortization) from its operating results.

25    QTS Q1 Earnings 2014 Contact: IR@Qtsdatacenters.com

In addition to EBITDA, the Company calculates an adjusted measure of EBITDA, which it refers to as Adjusted EBITDA, as EBITDA excluding unamortized deferred financing costs, gains on extinguishment of debt, transaction costs, equity-based compensation expense, restructuring charge, gain (loss) on legal settlement and gain on sale of real estate. The Company believes that Adjusted EBITDA provides investors with another financial measure that can facilitate comparisons of operating performance between periods and between REITs.

Management uses EBITDA and Adjusted EBITDA as supplemental performance measures as they provide useful measures of assessing the Company’s operating results. Other companies may not calculate EBITDA or Adjusted EBITDA in the same manner. Accordingly, the Company’s EBITDA and Adjusted EBITDA may not be comparable to others. EBITDA and Adjusted EBITDA should be considered only as supplements to net income (loss) as measures of the Company’s performance and should not be used as substitutes for net income (loss), as measures of its results of operations or liquidity or as an indications of funds available to meet our cash needs, including our ability to make distributions to our stockholders.

	Three Months Ended
	March 31,			December 31,			March 31,
	2014			2013			2013
EBITDA and Adjusted EBITDA
Net income (loss)	$	5,328		$	4,447		$	(2,074	)
Interest expense		2,065			2,747			6,550
Interest income		(8	)		(1	)		(6	)
Tax expense of taxable REIT subsidiaries		28			—			—
Depreciation and amortization		13,247			13,161			10,815
EBITDA		20,660			20,354			15,285
Write off of unamortized deferred finance costs		—			153			1,098
Equity-based compensation expense		911			655			375
Transaction costs		64			66			—
Adjusted EBITDA	$	21,635		$	21,228		$	16,758

Net Operating Income (NOI)

The Company calculates net operating income, or NOI, as net income (loss), excluding: interest expense, interest income, tax expense of taxable REIT subsidiaries, depreciation and amortization, write off of unamortized deferred financing costs, gain on extinguishment of debt, transaction costs, gain on legal settlement, gain on sale of real estate, restructuring charge and general and administrative expenses. The Company believes that NOI is another metric that is often utilized to evaluate returns on operating real estate from period to period and also, in part, to assess the value of the operating real estate. A reconciliation of net income (loss) to NOI is presented below:

	Three Months Ended
	March 31,			December 31,			March 31,
	2014			2013			2013
Net Operating Income (NOI)
Net income (loss)	$	5,328		$	4,447		$	(2,074	)
Interest expense		2,065			2,747			6,550
Interest income		(8	)		(1	)		(6	)
Depreciation and amortization		13,247			13,161			10,815
Write off of unamortized deferred finance costs		—			153			1,098
Tax expense of taxable REIT subsidiaries		28			—			—
Transaction costs		64			66			—
General and administrative expenses		10,778			9,848			9,594
NOI	$	31,502		$	30,421		$	25,977
Breakdown of NOI by facility:
Atlanta-Metro data center	$	14,402		$	13,654		$	12,184
Atlanta-Suwanee data center		8,174			8,210			6,784
Santa Clara data center		2,730			2,640			2,747
Richmond data center		3,047			2,780			2,267
Sacramento data center		2,324			2,061			1,924
Other data centers		825			1,076			71
NOI	$	31,502		$	30,421		$	25,977

26    QTS Q1 Earnings 2014 Contact: IR@Qtsdatacenters.com