QTS REALTY TRUST, INC.

QUALITYTECH, LP

CONSOLIDATED FINANCIAL STATEMENTS

SCHEDULE III – REAL ESTATE INVESTMENTS

December 31, 2016



	Initial Costs						Costs Capitalized Subsequent to Acquisition						Gross Carrying Amount
As of December 31, 2016																			Accumulated
(dollars in thousands)			Buildings and		Construction				Buildings and		Construction				Buildings and		Construction		Depreciation and		Date of
Property Location	Land		Improvements		in Progress		Land		Improvements		in Progress		Land		Improvements		in Progress		Amortization		Acquisition
Owned Properties
Suwanee, Georgia	$	1,395	$	29,802	$	—	$	2,126	$	141,574	$	2,013	$	3,521	$	171,376	$	2,013	$	(59,326)	9/1/2005
Atlanta, Georgia (Metro)		12,647		35,473		—		2,750		399,492		32,422		15,397		434,965		32,422		(118,470)	10/3/2006
Santa Clara, California		—		15,838		—		—		82,870		7,078		—		98,708		7,078		(33,701)	11/1/2007
Richmond, Virginia		2,000		11,200		—		180		226,147		70,580		2,180		237,347		70,580		(36,376)	3/20/2010
Sacramento, California		1,481		52,753		—		—		9,349		390		1,481		62,102		390		(7,079)	12/21/2012
Princeton, New Jersey		20,700		32,126		—		(0)		662		538		20,700		32,788		538		(2,169)	6/30/2014
Irving, Texas		—		5,808		—		8,606		198,905		69,653		8,606		204,713		69,653		(11,465)	2/8/2013
Chicago, Illinois		—		—		17,764		9,400		45,848		82,859		9,400		45,848		100,623		(853)	7/8/2014
Piscataway, New Jersey		7,466		80,366		13,900		(0)		1,844		3,361		7,466		82,210		17,261		(1,240)	6/6/2016
Fort Worth, Texas		136		610		48,984		0		(0)		132		136		610		49,116		(8)	12/16/2016
Miami, Florida		1,777		6,955		—		—		24,215		83		1,777		31,170		83		(9,390)	3/6/2008
Lenexa, Kansas		400		3,100		—		37		660		—		437		3,760		—		(214)	6/3/2011
Duluth, Georgia Office Building		1,899		1,920		—		—		(2)		5,672		1,899		1,918		5,672		(3)	12/30/2015
	$	49,901	$	275,951	$	80,648	$	23,099	$	1,131,563	$	274,781	$	73,000	$	1,407,515	$	355,429	$	(280,294)
Leased Properties
Leased facilities acquired in 2015		1,130		78,897		12,127		—		13,670		(4,456)		1,130		92,567		7,671		(26,956)	6/16/2015
Jersey City, New Jersey		—		1,985		—		—		21,738		2,332		—		23,723		2,332		(9,896)	11/1/2006
Overland Park, Kansas		—		—		—		—		962		528		—		962		528		(687)
		1,130		80,882		12,127		—		36,369		(1,596)		1,130		117,252		10,531		(37,540)
	$	51,031	$	356,833	$	92,775	$	23,099	$	1,167,933	$	273,185	$	74,130	$	1,524,767	$	365,960	$	(317,834)

The aggregate gross cost of the Company’s properties for federal income tax purposes was $1.99 billion (unaudited) as of December 31, 2016.

The following table reconciles the historical cost and accumulated depreciation for the years ended December 31, 2016, 2015 and 2014 (in thousands):


	Year Ended December 31,
	2016		2015		2014
Property
Balance, beginning of period	$	1,583,153	$	1,177,582	$	905,735
Disposals		(8,946)		(5,617)		(54)
Additions (acquisitions and improvements)		390,650		411,188		271,901
Balance, end of period	$	1,964,857	$	1,583,153	$	1,177,582
Accumulated depreciation
Balance, beginning of period	$	(239,936)	$	(180,167)	$	(137,725)
Disposals		6,761		1,377		39
Additions (depreciation and amortization expense)		(84,659)		(61,146)		(42,481)
Balance, end of period	$	(317,834)	$	(239,936)	$	(180,167)