QTS REALTY TRUST, INC.

QUALITYTECH, LP

SCHEDULE III – REAL ESTATE INVESTMENTS

December 31, 2018



	Initial Costs						Costs Capitalized Subsequent to Acquisition						Gross Carrying Amount
As of December 31, 2018																			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 (1)		Acquisition
Owned Properties
Atlanta, Georgia (Atlanta-Metro)	$	12,647	$	35,473	$	—	$	7,769	$	457,973	$	88,253	$	20,416	$	493,446	$	88,253	$	(162,808)	10/3/2006
Irving, Texas		—		5,808		—		8,606		339,807		99,445		8,606		345,615		99,445		(40,650)	2/8/2013
Richmond, Virginia		2,000		11,200		—		180		241,898		67,932		2,180		253,098		67,932		(60,731)	3/20/2010
Chicago, Illinois		—		—		17,764		9,400		130,150		115,331		9,400		130,150		133,095		(10,302)	7/8/2014
Suwanee, Georgia (Atlanta-Suwanee)		1,395		29,802		—		2,126		136,496		3,188		3,521		166,298		3,188		(66,678)	9/1/2005
Piscataway, New Jersey		7,466		80,366		13,900		—		17,440		19,572		7,466		97,806		33,472		(6,585)	6/6/2016
Santa Clara, California		—		15,838		—		—		82,710		7,600		—		98,548		7,600		(40,466)	11/1/2007
Sacramento, California		1,481		52,753		—		—		12,121		92		1,481		64,874		92		(11,522)	12/21/2012
Fort Worth, Texas		136		610		48,984		8,943		18,013		(5,269)		9,079		18,623		43,715		(1,195)	12/16/2016
Princeton, New Jersey		20,700		32,126		—		—		1,920		431		20,700		34,046		431		(3,972)	6/30/2014
Dulles, Virginia		3,154		29,583		—		—		42,852		3,852		3,154		72,435		3,852		(18,586)	10/6/2017
Ashburn, Virginia (2)		—		—		53,009		17,325		63,245		131,942		17,325		63,245		184,951		(1,704)	8/9/2017 & 10/23/2017
Phoenix, Arizona (2)		—		—		24,668		—		—		4,894		—		—		29,562		—	8/11/2017
Hillsboro, Oregon (2)		—		—		25,657		—		—		14,178		—		—		39,835		—	10/3/2017
Miami, Florida		1,777		6,955		—		—		24,080		90		1,777		31,035		90		(11,044)	3/6/2008
Lenexa, Kansas		400		3,100		—		36		735		—		436		3,835		—		(457)	6/3/2011
Manassas, Virginia (1) (5)		—		—		24,626		—		—		20,568		—		—		45,194		—	3/2/2018
	$	51,156	$	303,614	$	208,608	$	54,385	$	1,569,440	$	572,099	$	105,541	$	1,873,054	$	780,707	$	(436,700)
Leased Properties
Leased Facilities acquired in 2015		—		59,087		—		—		(37,471)		382		—		21,616		382		(18,586)	6/16/2015
Jersey City, New Jersey		—		1,985		—		—		19,745		8,952		—		21,730		8,952		(11,757)	11/1/2006
Overland Park, Kansas		—		—		—		—		851		22		—		851		22		(601)
	$	—	$	61,072	$	—	$	—	$	(16,875)	$	9,356	$	—	$	44,197	$	9,356	$	(30,944)
	$	51,156	$	364,686	$	208,608	$	54,385	$	1,552,565	$	581,455	$	105,541	$	1,917,251	$	790,064	$	(467,644)

(1)

See Note 2 ‘Significant Accounting Policies’ for information regarding asset lives on which depreciation and amortization are calculated.

(2)

Represent land purchases. Land acquisition costs, as well as subsequent development costs, are included within construction in progress until development on the land has ended and the asset is ready for its intended use.

The aggregate gross cost of the Company’s properties for federal income tax purposes was $3.03 billion (unaudited) as of December 31, 2018.

The following table reconciles the historical cost and accumulated depreciation for the years ended December 31, 2018, 2017 and 2016 (in thousands):


	Year Ended December 31,
	2018		2017		2016
Property
Balance, beginning of period	$	2,357,322	$	1,964,857	$	1,583,153
Disposals		(43,616)		(18,198)		(8,946)
Additions (acquisitions and improvements)		499,150		410,663		390,650
Balance, end of period	$	2,812,856	$	2,357,322	$	1,964,857
Accumulated depreciation
Balance, beginning of period	$	(394,823)	$	(317,834)	$	(239,936)
Disposals		30,139		13,970		6,761
Additions (depreciation and amortization expense)		(102,960)		(90,959)		(84,659)
Balance, end of period	$	(467,644)	$	(394,823)	$	(317,834)