Revenues Up 21% WASHINGTON, Nov. 3 /PRNewswire-FirstCall/ -- DuPont
Fabros Technology, Inc. (NYSE:DFT) today reported results for the
three and nine months ended September 30, 2009. All per share
results are reported on a fully diluted basis. Highlights --
Executed five leases totaling 15.90 megawatts in third quarter,
representing approximately $310 million of total contract value
over respective lease terms. -- CH1 Phase I 48% leased, ACC5 Phase
I 73% leased and ACC5 Phase II 38% pre-leased. -- Subsequent to the
end of the third quarter executed one lease totaling 1.95 megawatts
in Reston, Virginia. This lease, which commences in January 2010,
fully re-leases the 27,268 raised square feet expiring on December
31, 2009. -- Opened Phase I of ACC5, which adds 18% of critical
load to our operating portfolio. -- Funds From Operations ("FFO")
of $0.29 per share for third quarter of 2009, which was in the
upper half of guidance range. -- Revenues increased 21.0% in the
third quarter and 17.0% year to date. -- Raised the lower end of
2009 FFO per share guidance range by $0.04 per share to $1.09 to
$1.12 per share. -- Raised the 2009 required dividend payout per
share guidance by $0.04 per share to $0.24 to $0.30 per share.
Hossein Fateh, President and Chief Executive Officer of the
Company, said, "During the third quarter, we continued to focus on
leasing and operations, and are pleased with the progress made.
Year to date we have signed 12 leases totaling 32.80 megawatts of
critical load, 187,350 raised square feet of space and
approximately $700 million of contract value to the Company. In the
third quarter we also achieved a solid quarter of earnings and
opened our ACC5 Phase I development. Looking ahead, a principal
objective will be raising the funds necessary to start the next two
developments in early 2010 in order to capitalize on market demand
for our product." Third Quarter 2009 Results For the quarter ended
September 30, 2009, the Company reported earnings per share of
$0.08 compared to $0.12 for the third quarter of 2008. Revenues
increased 21.0%, or $9.0 million, to $51.9 million for the third
quarter of 2009 over the third quarter of 2008. The $0.04 per share
decrease in earnings per share is primarily due to higher interest
expense, which is attributable to higher debt balances and lower
capitalized interest, partially offset by higher operating income.
FFO per share for the quarter ended September 30, 2009 was $0.29
compared to $0.31 for the quarter ended September 30, 2008. The
$0.02 per share decrease is primarily due to higher interest
expense, partially offset by higher operating income, as referenced
above. Nine Months Ended September 30, 2009 For the nine months
ended September 30, 2009, the Company reported earnings per share
of $0.22 compared to $0.44 for the nine months ended September 30,
2008. Revenues increased 17.0%, or $21.5 million, to $147.6 million
for the nine months ended September 30, 2009 over the year ago
period. The overall decrease in earnings per share is primarily
attributable to higher interest expense, which is due to higher
debt balances and lower capitalized interest, and increased
depreciation and amortization in the current period. FFO per share
for the nine months ended September 30, 2009 was $0.83 compared to
$1.00 for the corresponding period in 2008. The $0.17 per share
decrease is primarily due to higher interest expense, as referenced
above. Portfolio Update/Status During the third quarter of 2009,
the Company executed five new leases totaling 15.90 megawatts of
critical load and 90,460 raised square feet with an average lease
term of 10.6 years. This represents approximately $310 million of
contract value to the Company. -- One lease was signed at CH1 Phase
I in Elk Grove Village, Illinois representing 5.63 megawatts of
critical load and 36,700 raised square feet. -- Two leases were
signed at ACC5 Phase I in Ashburn, Virginia comprising 2.84
megawatts of critical load and 13,700 raised square feet. -- One
lease was signed at VA3 in Reston, Virginia comprising 0.60
megawatts of critical load and 7,060 raised square feet. This is a
new lease of space being vacated at the end of 2009. -- One
pre-lease was signed at ACC5 Phase II in Ashburn, Virginia
comprising 6.83 megawatts of critical load and 33,000 raised square
feet with a January 1, 2011 move-in date. Subsequent to the end of
the third quarter, the Company executed one lease at VA3 in Reston,
Virginia totaling 1.95 megawatts of critical load, which, combined
with the lease mentioned above, fully re-leases the space being
vacated at the end of 2009. As of the date of this press release,
the Company's stabilized operating portfolio's critical load is
100% leased. CH1 Phase I and ACC5 Phase I, both currently in
lease-up, are 48% and 73% leased, respectively. ACC5 Phase II, a
new development yet to be completed, is 38% pre-leased. Liquidity
The Company has no debt maturities until the third quarter of 2011
assuming the election of the extension options on the Company's
line of credit and the loans secured by ACC5 and SC1. As of the
date of this press release, the Company has approximately $24
million of unrestricted cash and $20 million available on its
revolving credit facility. Development Update The Company has
obtained the certificate of occupancy and commissioning report for
ACC5 Phase I. The building was designed and constructed to obtain
LEED gold certification. As of the date of this press release, the
Company is actively pursuing additional funds for both the ACC5
Phase II in Ashburn, Virginia and NJ1 Phase I in Piscataway, New
Jersey developments. The commencement of one or both is subject to
obtaining adequate financing. Dividend The Company has increased
its 2009 REIT dividend requirement estimate by $0.04, and the
payment range is now $0.24 to $0.30 per share. The Company has
available funds sufficient to pay the dividend in cash, and the
Board of Directors will determine the method and timing of the
dividend prior to the end of the fourth quarter. 2009 Guidance The
Company has established a FFO guidance range of $0.26 to $0.29 per
share for the fourth quarter of 2009 and is reaffirming and
tightening its annual FFO guidance range by $0.04 per share from
$1.05 to $1.12 per share to $1.09 to $1.12 per share. The
assumptions underlying this guidance are outlined on page 15 of
this press release. Third Quarter 2009 Conference Call and Webcast
Information The Company will host a conference call to discuss
these results tomorrow, Wednesday, November 4, 2009 at 10:00 a.m.
ET. To access the live call, please visit the Investor Relations
section of the Company's website at http://www.dft.com/ or dial
1-888-726-2419 (domestic) or 1-913-312-0397 (international). A
replay will be available for seven days by dialing 1-888-203-1112
(domestic) or 1-719-457-0820 (international) using conference ID
3352492. The webcast will be archived on the Company's website for
one year at http://www.dft.com/ on the Presentations & Webcasts
page. Fourth Quarter 2009 Conference Call DuPont Fabros Technology,
Inc. expects to announce fourth quarter 2009 results on Wednesday,
February 10, 2010 and to host a conference call to discuss those
results at 10:00 a.m. ET on Thursday, February 11, 2010. About
DuPont Fabros Technology, Inc. DuPont Fabros Technology, Inc.
(NYSE:DFT) is a real estate investment trust (REIT) and leading
owner, developer, operator and manager of wholesale data centers.
The Company's data centers are highly specialized, secure
facilities used primarily by national and international technology
companies to house, power and cool the computer servers that
support many of their most critical business processes. DuPont
Fabros Technology, Inc. is headquartered in Washington, DC. For
more information, please visit http://www.dft.com/. Forward-Looking
Statements Certain statements contained in this press release may
be deemed to be forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. The matters
described in these forward-looking statements include expectations
regarding future events, results and trends and are subject to
known and unknown risks, uncertainties and other unpredictable
factors, many of which are beyond the Company's control. The
Company faces many risks that could cause its actual performance to
differ materially from the results contemplated by its
forward-looking statements, including, without limitation, the risk
that the Company may be unable to obtain financing on favorable
terms or pre-leasing on its development properties sufficient to
enable it to resume construction, the risk that the Company is
unable to satisfy the conditions required to exercise the extension
options for its line of credit and loans, the risks commonly
associated with construction and development of new facilities,
risks relating to compliance with permitting, zoning, land-use and
environmental requirements, the risks related to the leasing of
space to third-party tenants, including the ability of the Company
to negotiate leases on terms that will enable it to achieve its
expected returns, the risk that the Company may be unable to
acquire additional properties on favorable terms or at all, and the
risk that the Company may not be able to maintain its qualification
as a REIT for federal tax purposes. The periodic reports that the
Company files with the Securities and Exchange Commission,
including its annual report on Form 10-K for the year ended
December 31, 2008, contain detailed descriptions of these and many
other risks to which the Company is subject. These reports are
available on our website at http://www.dft.com/. Because of the
risks described above and other unknown risks, the Company's actual
results, performance or achievements may differ materially from the
results, performance or achievements contemplated by its
forward-looking statements. The information set forth in this news
release represents management's expectations and intentions only as
of the date of this press release. The Company assumes no
responsibility to issue updates to the forward-looking matters
discussed in this press release. DUPONT FABROS TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited and in thousands
except share and per share data) Three months ended Nine months
ended September 30, September 30, ------------------
----------------- 2009 2008 2009 2008 ---- ---- ---- ---- Revenues:
Base rent $29,491 $26,080 $83,893 $77,821 Recoveries from tenants
17,954 15,907 51,060 41,843 Other revenues 4,475 931 12,653 6,470
----- --- ------ ----- Total revenues 51,920 42,918 147,606 126,134
Expenses: Property operating costs 16,505 14,141 46,499 35,898 Real
estate taxes and insurance 1,234 1,015 3,634 2,895 Depreciation and
amortization 14,240 13,038 41,551 37,116 General and administrative
3,580 2,587 10,142 7,893 Other expenses 3,548 795 10,175 5,334
----- --- ------ ----- Total expenses 39,107 31,576 112,001 89,136
------ ------ ------- ------ Operating income 12,813 11,342 35,605
36,998 Interest income 66 66 350 147 Interest: Expense incurred
(6,088) (3,062) (17,101) (6,525) Amortization of deferred financing
costs (1,267) (465) (4,533) (1,056) ------ ---- ------ ------ Net
income 5,524 7,881 14,321 29,564 Net income attributable to
redeemable noncontrolling interests - operating partnership (2,137)
(3,732) (5,753) (13,935) ------ ------ ------ ------- Net income
attributable to controlling interests $3,387 $4,149 $8,568 $15,629
====== ====== ====== ======= Earnings per share - basic: Net income
attributable to controlling interests per common share $0.08 $0.12
$0.22 $0.44 ===== ===== ===== ===== Weighted average common shares
outstanding 41,041,140 35,436,020 39,407,194 35,423,999 ==========
========== ========== ========== Earnings per share - diluted: Net
income attributable to controlling interests per common share $0.08
$0.12 $0.22 $0.44 ===== ===== ===== ===== Weighted average common
shares outstanding 41,992,512 35,455,303 39,918,440 35,424,032
========== ========== ========== ========== Dividends declared per
common share $- $0.1875 $- $0.5625 == ======= == ======= DUPONT
FABROS TECHNOLOGY, INC. RECONCILIATIONS OF NET INCOME TO FFO AND
AFFO (1) (unaudited and in thousands except per share data) Three
months ended Nine months ended September 30, September 30,
------------------ ---------------- 2009 2008 2009 2008 ---- ----
---- ---- Net income $5,524 $7,881 $14,321 $29,564 Depreciation and
amortization 14,240 13,038 41,551 37,116 Less: Non real estate
depreciation and amortization (124) (40) (355) (174) ---- --- ----
---- FFO $19,640 $20,879 $55,517 $66,506 Straight-line revenue
(4,159) (6,710) (11,504) (22,118) Amortization of lease contracts
above and below market value (1,744) (1,747) (5,233) (5,234) Loss
on early extinguishment of debt - - 1,047 - Compensation paid with
Company common shares 612 170 1,431 874 --- --- ----- --- AFFO
$14,349 $12,592 $41,258 $40,028 ======= ======= ======= ======= FFO
per share - diluted $0.29 $0.31 $0.83 $1.00 ===== ===== ===== =====
AFFO per share - diluted $0.21 $0.19 $0.61 $0.60 ===== ===== =====
===== Weighted average common shares and OP units outstanding -
diluted 67,631,035 66,617,574 67,154,717 66,586,303 ==========
========== ========== ========== (1) Funds from operations, or FFO,
is used by industry analysts and investors as a supplemental
operating performance measure for REITs. We calculate FFO in
accordance with the definition that was adopted by the Board of
Governors of the National Association of Real Estate Investment
Trusts, or NAREIT. FFO, as defined by NAREIT, represents net income
determined in accordance with GAAP, excluding extraordinary items
as defined under GAAP and gains or losses from sales of previously
depreciated operating real estate assets, plus specified non-cash
items, such as real estate asset depreciation and amortization, and
after adjustments for unconsolidated partnerships and joint
ventures. We use 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 expenses. We
also believe that, as a widely recognized measure of the
performance of equity REITs, FFO will be used by investors as a
basis to compare our operating performance with that of other
REITs. However, because FFO excludes real estate related
depreciation and amortization and captures neither the changes in
the value of our properties that result from use or market
conditions nor the level of capital expenditures and leasing
commissions necessary to maintain the operating performance of our
properties, all of which have real economic effects and could
materially impact our results from operations, the utility of FFO
as a measure of our performance is limited. While FFO is a relevant
and widely used measure of operating performance of equity REITs,
other equity REITs may use different methodologies for calculating
FFO and, accordingly, FFO as disclosed by such other REITs may not
be comparable to our FFO. Therefore, we believe that in order to
facilitate a clear understanding of our historical operating
results, FFO should be examined in conjunction with net income as
presented in the consolidated statements of operations. FFO should
not be considered as an alternative to net income or to cash flow
from operating activities (each as computed in accordance with
GAAP) or as an indicator of our liquidity, nor is it indicative of
funds available to fund our cash needs, including our ability to
pay dividends or make distributions. We also present FFO with a
supplemental adjustment which we call Adjusted FFO ("AFFO"). AFFO
is FFO excluding straight-line revenue, non-cash stock based
compensation, gain or loss on derivative instruments, acquisition
of service agreements, below market lease amortization net of above
market lease amortization and early extinguishment of debt costs.
AFFO does not represent cash generated from operating activities in
accordance with GAAP and therefore should not be considered an
alternative to net income as an indicator of our operating
performance or as an alternative to cash flow provided by
operations as a measure of liquidity and is not necessarily
indicative of funds available to fund our cash needs including our
ability to pay dividends. In addition, AFFO may not be comparable
to similarly titled measurements employed by other companies. Our
management uses AFFO in management reports to provide a measure of
REIT operating performance that can be compared to other companies
using AFFO. DUPONT FABROS TECHNOLOGY, INC. CONSOLIDATED BALANCE
SHEETS (in thousands except share data) September 30, December 31,
2009 2008 ---- ---- ASSETS (unaudited) Income producing property:
Land $44,001 $39,617 Buildings and improvements 1,437,415 1,277,230
--------- --------- 1,481,416 1,316,847 Less: accumulated
depreciation (101,419) (63,669) -------- ------- Net income
producing property 1,379,997 1,253,178 Construction in progress and
land held for development 325,282 447,881 ------- ------- Net real
estate 1,705,279 1,701,059 Cash and cash equivalents 21,247 53,512
Restricted cash 4,478 134 Rents and other receivables 1,443 1,078
Deferred rent 50,556 39,052 Lease contracts above market value, net
17,065 19,213 Deferred costs, net 40,805 42,917 Prepaid expenses
and other assets 6,545 7,798 ----- ----- Total assets $1,847,418
$1,864,763 ========== ========== LIABILITIES AND STOCKHOLDERS'
EQUITY Liabilities: Line of credit $223,996 $233,424 Mortgage notes
payable 479,000 433,395 Accounts payable and accrued liabilities
19,198 13,257 Construction costs payable 11,376 82,241 Lease
contracts below market value, net 31,053 38,434 Prepaid rents and
other liabilities 26,194 27,075 ------ ------ Total liabilities
790,817 827,826 Redeemable noncontrolling interests - operating
partnership 399,501 484,768 Commitments and contingencies - -
Stockholders' equity: Preferred stock, par value $.001, 50,000,000
shares authorized, no shares issued or outstanding at September 30,
2009 and December 31, 2008 - - Common stock, par value $.001,
250,000,000 shares authorized, 41,868,441 shares issued and
outstanding at September 30, 2009 and 35,495,257 shares issued and
outstanding at December 31, 2008 42 35 Additional paid in capital
737,432 641,819 Accumulated deficit (71,656) (80,224) Accumulated
other comprehensive loss (8,718) (9,461) ------ ------ Total
stockholders' equity 657,100 552,169 ------- ------- Total
liabilities and stockholders' equity $1,847,418 $1,864,763
========== ========== DUPONT FABROS TECHNOLOGY, INC. CONSOLIDATED
STATEMENTS OF CASH FLOWS (unaudited and in thousands) Nine months
ended September 30, ----------------- 2009 2008 ---- ---- Cash flow
from operating activities Net income $14,321 $29,564 Adjustments to
reconcile net income to net cash provided by operating activities
Depreciation and amortization 41,551 37,116 Straight line rent
(11,504) (22,118) Amortization of deferred financing costs 4,533
1,056 Amortization of lease contracts above and below market value
(5,233) (5,234) Compensation paid with Company common shares 1,431
874 Changes in operating assets and liabilities Restricted cash
(344) - Rents and other receivables (365) (160) Deferred costs
(2,663) (238) Prepaid expenses and other assets 1,942 (4,159)
Accounts payable and accrued liabilities 5,941 3,600 Prepaid rents
and other liabilities 2,852 11,296 ----- ------ Net cash provided
by operating activities 52,462 51,597 ------ ------ Cash flow from
investing activities Investments in real estate - development
(104,747) (216,063) Interest capitalized for real estate under
development (4,940) (9,871) Improvements to real estate (2,373)
(2,663) Additions to non-real estate property (315) (466) ---- ----
Net cash used in investing activities (112,375) (229,063) --------
-------- Cash flow from financing activities Line of credit:
Proceeds - 204,000 Repayments (9,428) - Mortgage notes payable:
Proceeds 181,726 32,537 Lump sum payoffs (135,121) - Repayments
(1,000) - Escrowed proceeds (4,000) - Offering costs - (87)
Payments of financing costs (4,529) (421) Dividends and
distributions: Common shares - (18,618) Noncontrolling interests -
operating partnership - (16,539) --- ------- Net cash provided by
financing activities 27,648 200,872 ------ ------- Net (decrease)
increase in cash and cash equivalents (32,265) 23,406 Cash and cash
equivalents, beginning 53,512 11,510 ------ ------ Cash and cash
equivalents, ending $21,247 $34,916 ======= ======= Supplemental
information: Cash paid for interest, net of amounts capitalized
$17,470 $6,097 ======= ====== Deferred financing costs capitalized
for real estate under development $1,270 $1,763 ====== ======
Construction costs payable capitalized to real estate $11,376
$39,827 ======= ======= DUPONT FABROS TECHNOLOGY, INC. Operating
Properties As of September 30, 2009 Year Gross Raised Critical
Property Built/ Building Square Load % Property Location Renovated
Area Feet MW Leased (2) (3) (4) (5) Stabilized (1) --------------
VA3 Reston, VA 2003 256,000 144,901 13.0 100 % VA4 Bristow, VA 2005
230,000 90,000 9.6 100 % ACC2 Ashburn, VA 2001/2005 87,000 53,397
10.4 100 % ACC3 Ashburn, VA 2001/2006 147,000 79,600 13.0 100 %
ACC4 Ashburn, VA 2007 307,000 172,025 36.4 100 % ------- -------
---- ----- Subtotal - stabilized 1,027,000 539,923 82.4 100 %
Completed not Stabilized ------------------------ CH1 Phase I Elk
Grove Village, IL 2008 285,000 121,223 18.2 48 % ACC5 Phase I
Ashburn, VA 2009 150,000 85,600 18.2 73 % ------- ------ ---- Total
Operating Properties 1,462,000 746,746 118.8 ========= =======
===== --------- 1. Stabilized operating properties are either 85%
or more leased or are in service for 24 months or greater. 2. Gross
building area is the entire building area, including raised square
footage (the portion of gross building area where our tenants'
computer servers are located), tenant common areas, areas
controlled by us (such as the mechanical, telecommunications and
utility rooms) and, in some facilities, individual office and
storage space leased on an as available basis to our tenants. 3.
Raised square footage is that portion of gross building area where
our tenants locate their computer servers. We consider raised
square footage to be the net rentable square footage in each of our
facilities. 4. Critical load (also referred to as IT load or load
used by tenants' servers or related equipment) is the power
available for exclusive use by our tenants expressed in terms of
megawatt, or MW, or kilowatt, or kW (1 MW is equal to 1,000 kW). 5.
Percentage leased is expressed as a percentage of critical load
that is subject to an executed lease. Represents $133.2 million of
annualized base rent on a straight-line basis for leases executed
and/or amended as of September 30, 2009 over the non-cancellable
terms of the respective leases and excludes approximately $7.0
million net amortization increase in revenue of above and below
market leases. Base rent for the next 12 months on a cash basis as
of September 30, 2009 is $106.1 million assuming no additional
leasing or changes to existing leases. DUPONT FABROS TECHNOLOGY,
INC. Lease Expirations As of September 30, 2009 The following table
sets forth a summary schedule of lease expirations of our operating
properties for each of the ten calendar years beginning with 2009.
The information set forth in the table assumes that tenants
exercise no renewal options and considers early tenant termination
options. Number Raised % of Net Total kW Year of of Square Raised
of % of Lease Leases Feet Square Expiring % of Annualized
Expiration Expiring Expiring Feet Leases Leased kW Base Rent (1)
(2) (3) ---------- ------- --------- ------- -------- ---------
---------- 2009(4) 1 27,268 4.1% 2,600 2.5% 0.9% 2010 1 66,661
10.0% 5,688 5.5% 3.1% 2011 2 19,620 3.0% 2,438 2.3% 2.1% 2012 1
15,000 2.3% 1,600 1.5% 1.9% 2013 3 44,743 6.7% 4,630 4.4% 3.3% 2014
6 46,509 7.0% 6,963 6.7% 7.1% 2015 2 68,397 10.3% 12,000 11.5%
10.4% 2016 2 54,800 8.3% 8,100 7.8% 9.1% 2017 5 70,800 10.7% 12,324
11.8% 13.2% 2018 4 75,300 11.4% 15,113 14.5% 16.0% After 2018 11
173,909 26.2% 32,875 31.5% 32.9% ------- --------- ------- --------
--------- ---------- Total 38 663,007 100% 104,331 100% 100%
======= ========= ======= ======== ========= ========== ------- 1.
The operating properties have 21 tenants with 38 different lease
expiration dates. Top two tenants represent 51% of annualized base
rent. Top three tenants represent 66% of annualized base rent. 2.
Raised square footage is that portion of gross building area where
our tenants locate their computer servers. We consider raised
square footage to be the net rentable square footage in each of our
facilities. 3. One megawatt is equal to 1,000 kW. 4. The Company
has executed two new leases to fully re-lease the space covered by
this expiring lease. DUPONT FABROS TECHNOLOGY, INC. Development
Projects As of September 30, 2009 ($ in thousands) Construction in
Progress & Land Esti- Held Percen- Property Property Gross
Raised Critical mated for tage Location Building Square Load Total
Develop- Pre- Area Feet MW Cost ment Leased (1) (2) (3) (4) (5)
------ ------ ----- ------ ------ ------ Development Projects on
hold -------------------- ACC5 $140,000- Phase II Ashburn, VA
150,000 85,600 18.2 $150,000 $59,085 38% NJ1 $200,000- Phase I(6)
Piscataway, NJ 150,000 85,600 18.2 $215,000 131,578 SC1 $240,000-
Phase I(6) Santa Clara, CA 150,000 85,600 18.2 $280,000 53,394
------- ------- ---- -------- ------ $580,000- 450,000 256,800 54.6
$645,000 244,057 ------- ------- ---- -------- ------- Future
Development Projects ------------------- CH1 Phase II Elk Grove
Village, IL 200,000 89,917 18.2 * NJ1 Piscataway, Phase II NJ
150,000 85,600 18.2 * SC1 Santa Clara, Phase II CA 150,000 85,600
18.2 * SC2 Phase I/II Santa Clara, CA 300,000 171,200 36.4 * ACC6
Phase I/II Ashburn, VA 240,000 155,000 31.2 * ACC7 Ashburn, VA
100,000 50,000 10.4 * ------- ------- ---- 1,140,000 637,317 132.6
81,225 --------- ------- ----- ------ Total 1,590,000 894,117 187.2
$325,282 ========= ======= ===== ======== ------------- *
Development costs have not yet been estimated. 1. Gross building
area is the entire building area, including raised square footage
(the portion of gross building area where our tenants' computer
servers are located), tenant common areas, areas controlled by us
(such as the mechanical, telecommunications and utility rooms) and,
in some facilities, individual office and storage space leased on
an as available basis to our tenants. 2. Raised square footage is
that portion of gross building area where our tenants locate their
computer servers. We consider raised square footage to be the net
rentable square footage in each of our facilities. 3. Critical load
(also referred to as IT load or load used by tenants' servers or
related equipment) is the power available for exclusive use by our
tenants expressed in terms of MW or kW (1 MW is equal to 1,000 kW).
4. Includes estimated capitalization for construction and
development, including closing costs, capitalized interest and
capitalized operating carrying costs, as applicable, upon
completion. 5. Amount capitalized as of September 30, 2009. 6.
Construction temporarily suspended on NJ1 and SC1 and amount
incurred includes all estimated commitments. DUPONT FABROS
TECHNOLOGY, INC. Debt Summary as of September 30, 2009 ($ in
thousands) Amounts % of Total Rates(1) Maturities (years) --------
---------- -------- --------- Secured $702,996 100.0 % 4.2 % 1.5
Unsecured - - - - -------- ------- ----- --- Total $702,996 100.0 %
4.2 % 1.5 ======== ======= ===== === Fixed Rate Debt: Safari Term
Loan (2)(3) $200,000 28.4 % 6.5 % 1.9 ACC5 Loan 25,000 3.6 % 12.0 %
0.4 SC1 Loan 5,000 0.7 % 12.0 % 0.4 -------- ------- ------ ---
Fixed Rate Debt 230,000 32.7 % 7.2 % 1.7 -------- ------ ------ ---
Floating Rate Debt: Line of Credit (2) 223,996 31.9 % 1.5 % 0.9
ACC4 Term Loan 249,000 35.4 % 3.8 % 2.1 ------- ------- ------ ---
Floating Rate Debt 472,996 67.3 % 2.7 % 1.5 ------- ------- ------
--- Total $702,996 100.0 % 4.2 % 1.5 ======== ======= ====== ===
Note: The Company capitalized interest of $1.8 million and $6.2
million during the three and nine months ended September 30, 2009,
respectively. 1. Rate as of September 30, 2009. 2. Collateral
includes VA3, VA4, ACC2 and ACC3. 3. Rate is fixed by an interest
rate swap. Debt Maturity Schedule as of September 30, 2009 ($ in
thousands) Year Fixed Floating Rate Rate Total % of Total Rates (5)
---- ---------- -------- ------ ---------- --------- 2009 $- $- $-
- - 2010 30,000(1) 223,996(3) 253,996 36.1 % 2.7 % 2011 200,000(2)
249,000(4) 449,000 63.9 % 5.0 % ------- ------- ------- ------
----- Total $230,000 $472,996 $702,996 100.0 % 4.2 % ========
======== ======== ======= ===== --------- 1. Extendable up to four
years upon satisfaction of certain customary conditions. 2. Matures
on August 7, 2011 with no extension option. 3. Amount outstanding
on the Company's $275 million Line of Credit that matures on August
7, 2010, subject to a one-year extension option exercisable by the
Company upon satisfaction of certain customary conditions. A
borrowing base initial appraised value covenant currently limits
the amount available to $244 million. 4. Matures on October 24,
2011 and includes a one-year extension option exercisable by the
Company upon satisfaction of certain customary conditions. Includes
scheduled principal amortization payments of $0.5 million in the
fourth quarter of 2009 and $2.0 million in 2010. 5. Rate as of
September 30, 2009. DUPONT FABROS TECHNOLOGY, INC. Selected
Financial Covenants 9/30/09 6/30/09 ------- ------- Total Debt to
Gross Asset Value (not to exceed 65%) 34% 35% Fixed Charge Coverage
ratio (not less than 1.45) 3.60 3.56 Borrowing Base Debt Service
Coverage Ratio (not less than 1.35) 1.95 1.93 Secured Recourse Debt
to Gross Asset Value (not to exceed 15%) 5% 5% These selected
covenants relate to DuPont Fabros Technology, LP and/or its related
subsidiaries. DuPont Fabros Technology, Inc. is the general partner
of DuPont Fabros Technology, LP. Capital Structure as of September
30, 2009 (in thousands except per share data) Mortgage notes
payable $479,000 Line of Credit 223,996 -------- Total Debt 702,996
43.9% Common Shares 62% 41,869 Operating Partnership ("OP") Units
38% 25,453 --- ------ Total Shares and OP Units 100% 67,322 Common
Share Price at September 30, 2009 $13.33 ------ Total Equity
897,402 56.1% ------- ----- Total Market Capitalization $1,600,398
100.0% ========== ====== DUPONT FABROS TECHNOLOGY, INC. Common
Share and OP Unit Weighted Average Amounts Outstanding YTD YTD Q3
2009 Q3 2008 Q3 2009 Q3 2008 ------- ------- ------- -------
Weighted Average Amounts Outstanding for EPS Purposes: Common
Shares - basic 41,041,140 35,436,020 39,407,194 35,423,999 Shares
issued from assumed conversion of - Restricted Shares 365,076
19,283 203,154 33 - Stock options 586,296 - 308,092 - ------- ---
------- --- Total Common Shares - diluted 41,992,512 35,455,303
39,918,440 35,424,032 ========== ========== ========== ==========
Weighted Average Amounts Outstanding for FFO and AFFO Purposes:
Common Shares - basic 41,041,140 35,436,020 39,407,194 35,423,999
OP Units - basic 25,638,523 31,162,271 27,236,277 31,162,271
---------- ---------- ---------- ---------- Total Common Shares and
OP Units 66,679,663 66,598,291 66,643,471 66,586,270 Share issued
from assumed conversion of - Restricted Shares 365,076 19,283
203,154 33 - Stock options 586,296 - 308,092 - ------- --- -------
--- Total Common Shares and OP Units - diluted 67,631,035
66,617,574 67,154,717 66,586,303 ========== ========== ==========
========== Period Ending Amounts Outstanding: Common Shares
41,868,441 OP Units 25,453,394 ---------- Total Common Shares and
OP Units 67,321,835 ========== DUPONT FABROS TECHNOLOGY, INC. 2009
Guidance The earnings guidance/projections provided below are based
on current expectations and are forward-looking. Expected Q4
Expected 2009 2009 per share per share --------- --------- Earnings
per share and unit - diluted $0.04 to $0.07 $0.25 to $0.27
Depreciation and amortization, net 0.22 0.84 to 0.85 --------------
-------------- FFO per share and unit - diluted (1) $0.26 to $0.29
$1.09 to $1.12 ============== ============== 2009 Debt Assumptions
Weighted average debt outstanding $703 to $706 million Weighted
average interest rate 4.2% Total interest costs $29.5 to $30.0
million Total amortization of deferred financing costs $7.4 million
Interest expense capitalized $(4.9) million Deferred financing
costs amortization capitalized $(1.3) million -------------- Total
interest expense after capitalization $30.7 to $31.2 million
====================== Note: Debt guidance assumes no new debt
issued from the date of this release. 2009 Other Guidance
Assumptions Other revenues $12 to $14 million Straight-line revenue
$17 to $19 million Below market lease amortization, net of above
market lease amortization $7 million General and administrative
expense $13 to $14 million Estimated required REIT dividend
distribution payout $0.24 to $0.30 per share Weighted average
common shares and OP units - diluted 67.6 million (1) Funds from
operations, or FFO, is used by industry analysts and investors as a
supplemental operating performance measure for REITs. We calculate
FFO in accordance with the definition that was adopted by the Board
of Governors of the National Association of Real Estate Investment
Trusts, or NAREIT. FFO, as defined by NAREIT, represents net income
determined in accordance with GAAP, excluding extraordinary items
as defined under GAAP and gains or losses from sales of previously
depreciated operating real estate assets, plus specified non-cash
items, such as real estate asset depreciation and amortization, and
after adjustments for unconsolidated partnerships and joint
ventures. We use 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 expenses. We
also believe that, as a widely recognized measure of the
performance of equity REITs, FFO will be used by investors as a
basis to compare our operating performance with that of other
REITs. However, because FFO excludes real estate related
depreciation and amortization and captures neither the changes in
the value of our properties that result from use or market
conditions nor the level of capital expenditures and leasing
commissions necessary to maintain the operating performance of our
properties, all of which have real economic effects and could
materially impact our results from operations, the utility of FFO
as a measure of our performance is limited. While FFO is a relevant
and widely used measure of operating performance of equity REITs,
other equity REITs may use different methodologies for calculating
FFO and, accordingly, FFO as disclosed by such other REITs may not
be comparable to our FFO. Therefore, we believe that in order to
facilitate a clear understanding of our historical operating
results, FFO should be examined in conjunction with net income as
presented in the consolidated statements of operations. FFO should
not be considered as an alternative to net income or to cash flow
from operating activities (each as computed in accordance with
GAAP) or as an indicator of our liquidity, nor is it indicative of
funds available to fund our cash needs, including our ability to
pay dividends or make distributions. DATASOURCE: DuPont Fabros
Technology, Inc. CONTACT: Investor Relations, Mr. Christopher A.
Warnke of DuPont Fabros Technology, +1-202-728-0044, ext. 127 Web
Site: http://www.dft.com/
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