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DuPont Fabros Technology, Inc. Reports Fourth Quarter 2015 Results

Record 46.83 Megawatts of Leasing in 2015
ACC7 Phase II Opens 100% Leased and Commenced
Midpoint of 2016 Normalized FFO Per Share Guidance is 12% Higher Than 2015

WASHINGTON, Feb. 04, 2016 (GLOBE NEWSWIRE) -- DuPont Fabros Technology, Inc. (NYSE:DFT) announces results for the quarter ended December 31, 2015. All per share results are reported on a fully diluted basis.

Highlights

  • As of February 4, 2016, our operating portfolio was 98% leased and commenced as measured by computer room square feet ("CRSF") and 96% leased and commenced as measured by critical load (in megawatts, or "MW").
  • Quarterly Highlights:
    • Placed ACC7 Phase II into service 100% leased, totaling 8.9 MW and 51,000 CRSF.
    • Signed 12 new leases totaling 32.37 MW and 193,373 CRSF. Of this amount, 5.84 MW and 30,877 CRSF was executed after our third quarter 2015 earnings call. Included in the fourth quarter's leases were:
      • The entire 10.40 MW and 53,397 CRSF of our ACC2 facility.
      • The space that had been occupied by Net Data Centers ("Net"). This space is comprised of four leases totaling 4.13 MW and 38,852 CRSF.
      • Four additional leases totaling 14.97 MW and 87,116 CRSF, resulting in ACC7 Phases I and II and CH2 Phase I being 100% leased and commenced.
      • Two new leases at ACC5 totaling 1.45 MW and 5,213 CRSF.
      • A pre-lease of CH2 Phase II for 1.42 MW and 8,795 CRSF.
  • As previously disclosed, extended the term of one lease at ACC7 Phase I totaling 1.49 MW and 8,461 CRSF.

Christopher Eldredge, President and Chief Executive Officer, said, “The fourth quarter of 2015 capped a record-breaking year for DFT. New and existing customers leased 32 megawatts of data center capacity from us in the fourth quarter, pushing the company’s 2015 leasing totals to a historic high of 47 megawatts. Customer demand for our new developments proved particularly strong. We have fully leased the first two phases of ACC7 and the first phase of CH2 with GAAP returns of 13% – 100 basis points over our target yields. These results provide strong momentum as we enter 2016 and support our confidence in the prospects for the 30 megawatts of data center capacity we have under development.”

Fourth Quarter 2015 Results

For the quarter ended December 31, 2015, we incurred a loss of $1.23 per share which included an impairment charge of $1.52 per share resulting from our decision to market the NJ1 data center for sale. Excluding the impairment charge, earnings were $0.29 per share, compared to $0.28 per share in the fourth quarter of 2014. The increase in earnings per share was primarily due to new leases that commenced in 2015, partially offset by a decline of $0.05 per share from ACC2 being vacant in the fourth quarter of 2015. The new lease at ACC2 commenced in January 2016. Revenues increased 7%, or $7.9 million, to $115.9 million for the fourth quarter of 2015 over the fourth quarter of 2014. The increase in revenues was primarily due to new leases commencing, partially offset by the ACC2 vacancy.

The impairment charge described above is excluded from the calculation of Funds from Operation, or FFO, as well as our calculation of Normalized FFO. Normalized FFO for the quarter ended December 31, 2015 was $0.61 per share compared to $0.58 per share for the fourth quarter of 2014. Normalized FFO increased $0.03 per share, or 5%, from the prior year quarter primarily due to the following:

  • Increased operating income excluding depreciation of $0.01 per share which includes the negative impact of $0.05 per share from the vacancy of ACC2 for the entire quarter,
  • Bad debt expense of $0.05 in the fourth quarter of 2014 related to Net, a former customer in bankruptcy, partially offset by
  • Increased interest expense of $0.03 per share due to a higher level of outstanding debt related to development financing.

Adjusted FFO ("AFFO") for the quarter ended December 31, 2015 was $0.60 per share compared to $0.62 per share in the fourth quarter of 2014. AFFO decreased $0.02 per share, or 3% from the prior year. The decrease was primarily due to the following:

  • A lower add-back of $0.04 per share of straight-line revenue resulting from new leases signed in 2015 and the expiration of the Yahoo! lease at ACC2,
  • Increased capital expenditures at our operating data center facilities of $0.02 per share, partially offset by
  • Lower amortization of below market value lease contracts of $0.01 per share resulting from the expiration of the Yahoo! lease at ACC2,
  • Increased Normalized FFO of $0.03 per share.

On February 23, 2015, Net filed a voluntary petition for relief under chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Central District of California, Los Angeles Division (the “Court”), Case No. 2:15-bk-12690-BB. At that time, Net leased and occupied space at our ACC4, ACC5, VA3 and NJ1 data center facilities. Specifically, Net leased 6.26 MW and 38,852 CRSF in the aggregate from us. Net rejected these leases as of June 30, 2015, with Net remaining in possession pursuant to a revenue sharing arrangement with us. In 2015, Net paid us $3.8 million under this revenue sharing agreement. This agreement was terminated upon the sale of Net's east coast business.

On October 20, 2015, Anexio Data Centers (“Anexio”) purchased Net's east coast business for $4.5 million in cash and other consideration. The operations of this business are located in four of our data center facilities: ACC4 and ACC5 in Ashburn, Virginia; VA3 in Reston, Virginia and NJ1 in Piscataway, New Jersey. In connection with this purchase, Anexio has entered into new leases with us at each of these locations totaling 4.13 MW and 38,852 CRSF in the aggregate. These leases commenced on October 20, 2015 and run through December 31, 2023, and resulted in our having an additional 2.13 MW available for lease, which was comprised of 0.93 MW in ACC4, 0.07 MW in ACC5 and 1.13 MW in NJ1. In the fourth quarter of 2015, we re-leased the ACC5 critical load. The rent of the new leases compared to the rejected Net leases results in a 33.9% reduction in cash base rent and an 18.1% reduction in GAAP base rent.

We also have a $6.5 million note receivable from Net, of which $5.1 million is reserved and represents 79% of the outstanding note balance. We did not add to this reserve in the fourth quarter, but will continue to monitor it each quarter.

Full Year 2015 Results

For the year ended December 31, 2015, we incurred a loss of $0.40 per share compared to earnings of $1.18 per share in 2014. Earnings per share for 2015 were negatively impacted by:

  • An impairment charge of $1.52 per share resulting from our decision to market the NJ1 data center for sale,
  • $0.13 per share related to Net’s February 2015 bankruptcy filing, which resulted in the loss of $0.10 per share of revenue that otherwise would have been recognized in 2015, and $0.03 per share of non-cash write-offs incurred when Net rejected its leases with us, and
  • Charges of $0.08 per share for severance expense and equity accelerations.

Earnings per share for 2014 was negatively impacted by $0.05 per share of bad debt expense related to Net. Excluding these items, earnings per share for 2015 increased $0.10 per share, or 8%.

Revenues increased 8%, or $34.8 million, to $452.4 million for 2015 compared to 2014. The increase in revenues was primarily due to new leases commencing, an increase in a la carte revenue and an increase in recoveries from tenants due to higher real estate taxes, partially offset by impact of Net's bankruptcy filing noted above and the vacancy of ACC2 in the fourth quarter of 2015.

Normalized FFO for the year ended December 31, 2015 was $2.46 per share compared to $2.39 per share for 2014. Normalized FFO adds back the $0.08 per share recognized in 2015 for the severance expense and equity accelerations noted above and the $0.02 per share loss on early extinguishment of debt in 2014. Normalized FFO increased $0.07 per share, or 3%, from the prior year period primarily due to the following:

  • Increased operating income excluding depreciation of $0.23 per share which includes the negative impact of $0.05 per share from the vacancy of ACC2, but excludes the negative impact from Net's bankruptcy filing,
  • Bad debt expense of $0.05 in 2014 related to Net, partially offset by
  • Revenue of $0.10 per share not recognized from Net,
  • Write-off of $0.02 per share in 2015 of straight-line receivables and intangible assets related to leases with Net, and
  • Increased interest expense of $0.09 per share due to a higher level of outstanding debt related to development financing.

AFFO for the year ended December 31, 2015 was $2.64 per share compared to $2.50 per share in 2014. AFFO increased $0.14 per share, or 6% from the prior year. The increase was primarily due to the following:

  • Increased Normalized FFO of $0.07 per share,
  • Increased add-back of straight-line revenue as a result of rent received from Net not recognized as revenue and increased cash rents totaling $0.06 per share and other smaller miscellaneous items of $0.01 per share,
  • Add-back of non-cash write-offs of Net's straight-line receivables and intangible assets of $0.02 per share,
  • Lower amortization of below market value lease contracts of $0.01 per share resulting from the expiration of the Yahoo! lease at ACC2, partially offset by
  • Increased capital expenditures at our operating data center facilities of $0.02 per share, and
  • Lower stock compensation expense add-back of $0.01 per share.

Portfolio Update

During the fourth quarter 2015, we:

  • Signed 12 leases with a weighted average lease term of 6.4 years totaling 32.37 MW and 193,373 CRSF.
    • Three of these leases were at ACC7 totaling 8.97 MW and 51,278 CRSF. All three leases commenced in the fourth quarter of 2015, and ACC7 Phases I and II are 100% leased and commenced.
    • One lease was at CH2 Phase I for 6.00 MW and 35,838 CRSF. This lease commenced in the fourth quarter of 2015, and CH2 Phase I is 100% leased and commenced.
    • One pre-lease was at CH2 Phase II for 1.42 MW and 8,795 CRSF. This lease is expected to commence upon the opening of CH2 Phase II in the second quarter of 2016.
    • Two leases were at ACC5 totaling 1.45 MW and 5,213 CRSF. One lease is in space that was returned to the Company in July 2015, and this lease commenced in the fourth quarter of 2015. The other lease represents excess power left over from the releasing of the space described above that had been leased to Net, which will commence in the first quarter of 2016.
    • One lease was for the entire 10.4 MW and 53,397 CRSF at ACC2, the space recently vacated by Yahoo!. The new lease at ACC2 commenced in January 2016. Compared to the lease rates in effect at the expiration of Yahoo’s! lease, cash base rents for the new lease will be 41.4% lower and GAAP base rents will be 12.6% lower. Total rents including operating expense recovery will be 31.4% lower for cash and 9.6% lower for GAAP. We believe that this magnitude of decline is specific to the ACC2 data center facility and will not be applicable to the remaining portfolio. ACC2 is our smallest data center facility and, primarily for that reason, has the highest cost of operations and cooling. Although base rent had to be decreased to make ACC2 market-competitive, on a total cost of occupancy basis - the total of base rent, operating costs and cooling - ACC2’s new customer will pay as much at ACC2 as a super wholesale customer would pay at ACC7.
    • Four leases were with the purchaser of Net's east coast business, Anexio, at ACC4, ACC5, NJ1 and VA3, totaling 4.13 MW and 38,852 CRSF in the aggregate, as described above. These leases commenced in the fourth quarter of 2015.
  • Extended the term of one lease at ACC7 Phase I totaling 1.49 MW and 8,461 CRSF. This lease was scheduled to expire in 2017 and was extended 4.2 years to now expire in 2021. Compared to the rate in effect at the time of renewal, cash base rent will be 10.0% lower upon the expiration of the original lease term. GAAP base rent will be 2.1% lower immediately.

In 2015, we:

  • Signed 19 leases with a weighted average lease term of 6.6 years totaling 46.83 MW and 269,973 CRSF that are expected to generate approximately $56.7 million of annualized GAAP base rent revenue which is equivalent to a GAAP rate of $101 per kW per month.
  • Commenced 19 leases totaling 41.56 MW and 239,197 CRSF.
  • Extended the terms of seven leases totaling 12.24 MW and 69,081 CRSF by a weighted average of 3.0 years. Compared to the rates in effect when each of the extensions were executed, cash base rents will be an average of 5.4% higher upon the expiration of the original lease terms. GAAP base rents will be an average of 4.5% higher immediately. The average GAAP base rent rate related to these extensions was $110 per kW per month.

Development Update

We are currently developing ACC7 Phase III (11.9 MW), CH2 Phase II (5.7 MW) which is 25% pre-leased and CH2 Phase III (12.5 MW). We anticipate that ACC7 Phase III and CH2 Phase II will be placed into service in the second quarter of 2016, and that CH2 Phase III will be placed into service in the third quarter of 2016.

In February 2016, we purchased two parcels of land in Ashburn, VA totaling 44.0 acres for $20.2 million. One of these parcels is inside our Ashburn Corporate Campus and one is adjacent to it. This land is being held for the future development of two new data center facilities to be known as ACC9 and ACC10, and a powered base shell or build-to-suit development.

Balance Sheet and Liquidity

As of February 4, 2016, we have borrowed $40 million under our line of credit leaving $660 million available for additional borrowings.

The Board approved a common stock repurchase program of $120 million for 2015, of which we purchased $31.9 million in the first quarter of 2015 at an average price of $31.80. No shares were purchased during the remainder of 2015. This program expired at the end of 2015 and has not been reauthorized.

Dividend

Our fourth quarter 2015 dividend of $0.47 per share was 12% higher than our third quarter dividend and was paid on January 15, 2016 to shareholders of record as of December 30, 2015. The anticipated 2016 annualized dividend of $1.88 per share represents an estimated AFFO payout ratio of 67% at the midpoint of our current 2016 guidance and a yield of approximately 6% based on our current stock price.

First Quarter and Full Year 2016 Guidance

We are establishing our 2016 Normalized FFO guidance range at $2.65 to $2.85 per share. Key assumptions included in this guidance are:

  • Both the higher end and lower end of the range include $0.08 per share from current leases at NJ1. If NJ1 is sold in 2016, guidance will be adjusted for the loss of this income and for the application of the sales proceeds to lower borrowings under our line of credit.
  • The low end of the range assumes no new leasing and the high end of the range assumes $0.19 per share from new leases.
  • Opening CH2 Phase II in April 2016, ACC7 Phase III in June 2016 and CH2 Phase III in July 2016.

The midpoint of our 2016 Normalized FFO guidance range is $2.75 per share which is $0.29 higher than 2015's Normalized FFO per share of $2.46, an increase of 12%. This is due to the following assumptions:

  • Increased operating income excluding depreciation, and general and administrative expenses of $0.56 per share which includes $0.37 per share from leases already executed and $0.19 per share from new leases, partially offset by
  • Increased interest expense of $0.21 per share due to higher levels of outstanding debt to fund our development plan and increases in interest rates, and
  • Increased general and administrative expenses of $0.06 per share from investments in personnel to execute on our strategic plan.

Our Normalized FFO guidance range is $0.66 to $0.68 per share for the first quarter of 2016. The midpoint of this range is $0.06 higher than Normalized FFO per share in the fourth quarter of 2015. This is due to the following assumptions:

  • Increased operating income excluding depreciation and general and administrative expenses of $0.07 per share, half of which is from the commencement of the new ACC2 lease, partially offset by
  • Increased general and administrative expenses of $0.01 per share from investments in personnel to execute our strategic plan.

Our 2016 AFFO guidance range is $2.70 to $2.90 per share. The midpoint is $2.80 per share which is $0.17 per share higher than 2015's AFFO of $2.63 per share, an increase of 6%. This is due to the following assumptions:

  • Increased Normalized FFO of $0.29 per share,
  • Increased add-back of stock based compensation of $0.01 per share,
  • Increased add-back of amortization of deferred financing costs of $0.01 per share, partially offset by
  • Decreased add-back of straight-line revenues of $0.11 per share primarily due to higher straight-line revenue from the new ACC2 lease and $0.06 per share recovered from Net in 2015 which was applied to straight-line receivables, and
  • Increased improvements to real estate of $0.03 per share due to projects at ACC2 and CH1.

Our AFFO guidance range is $0.64 to $0.66 per share for the first quarter of 2016. The midpoint of the range is $0.05 per share higher than fourth quarter 2015 AFFO per share. This is due to following assumptions:

  • Increase in midpoint of Normalized FFO of $0.06 per share, partially offset by
  • Reduction of straight-line revenues of $0.01 per share.

The assumptions underlying Normalized FFO and AFFO guidance can be found on the last page of this earnings release.

Fourth Quarter 2015 Conference Call and Webcast Information

We will host a conference call to discuss these results today, Thursday, February 4, 2016 at 11:00 a.m. ET. To access the live call, please visit the Investor Relations section of our website at www.dft.com or dial 1-877-662-0063 (domestic) or 1-503-406-4459 (international) and entering the conference ID #5325299. A replay will be available for seven days by dialing 1-855-859-2056 (domestic) or 1-404-537-3406 (international). The webcast will be archived on our website for one year at www.dft.com on the Presentations & Webcasts page.

About DuPont Fabros Technology, Inc.

DuPont Fabros Technology, Inc. (NYSE:DFT) is a leading owner, developer, operator and manager of enterprise-class, carrier neutral, multi-tenant wholesale data centers. The Company's facilities are designed to offer highly specialized, efficient and safe computing environments in a low-cost operating model. The Company's customers outsource their mission critical applications and include national and international enterprises across numerous industries, such as technology, Internet content providers, media, communications, cloud-based, healthcare and financial services. The Company's 12 data centers are located in four major U.S. markets, which total 3.0 million gross square feet and 266 megawatts of available critical load to power the servers and computing equipment of its customers. DuPont Fabros Technology, Inc., a real estate investment trust (REIT), is headquartered in Washington, DC. For more information, please visit 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 our control. We face many risks that could cause our actual performance to differ materially from the results contemplated by our forward-looking statements, including, without limitation, the risk that the assumptions underlying our full year and first quarter 2016 guidance are not realized, the risks related to the leasing of available space to third-party customers, including delays in executing new leases, failure to negotiate leases on terms that will enable us to achieve our expected returns and declines in rental rates at new and existing facilities, risks related to the collection of accounts and notes receivable, the risk that we may be unable to obtain new financing on favorable terms to facilitate, among other things, future development projects, the risks commonly associated with construction and development of new facilities (including delays and/or cost increases associated with the completion of new developments), risks relating to obtaining required permits and compliance with permitting, zoning, land-use and environmental requirements, the risk that we will not declare and pay dividends as anticipated for future periods and the risk that we may not be able to maintain our qualification as a REIT for federal tax purposes. The periodic reports that we file with the Securities and Exchange Commission, including the annual report on Form 10-K for the year ended December 31, 2014 and the quarterly reports on Form 10-Q for the quarters ended September 30, 2015, June 30, 2015 and March 31, 2015 contain detailed descriptions of these and many other risks to which we are subject. These reports are available on our website at www.dft.com. Because of the risks described above and other unknown risks, our actual results, performance or achievements may differ materially from the results, performance or achievements contemplated by our forward-looking statements. The information set forth in this news release represents our expectations and intentions only as of the date of this press release. We assume no responsibility to issue updates to the contents of this press release.

DUPONT FABROS TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except share and per share data)
Three months ended December 31, Twelve months ended December 31,
2015 2014 2015 2014
Revenues:
Base rent$77,539 $73,789 $298,585 $285,716
Recoveries from tenants36,527 31,989 139,537 124,853
Other revenues1,857 2,199 14,278 7,023
Total revenues115,923 107,977 452,400 417,592
Expenses:
Property operating costs35,689 30,335 130,051 117,339
Real estate taxes and insurance4,948 3,209 21,335 14,195
Depreciation and amortization26,399 25,109 104,044 96,780
General and administrative4,831 4,512 18,064 17,181
Impairment on investment in real estate122,472 122,472
Other expenses1,107 5,233 16,859 9,222
Total expenses195,446 68,398 412,825 254,717
Operating (loss) income(79,523) 39,579 39,575 162,875
Interest income9 3 60 116
Interest:
Expense incurred(11,528) (9,136) (40,570) (33,699)
Amortization of deferred financing costs(911) (709) (3,151) (2,980)
Loss on early extinguishment of debt (1,701)
Net (loss) income(91,953) 29,737 (4,086) 124,611
Net loss (income) attributable to redeemable noncontrolling interests – operating partnership18,894 (4,389) 5,993 (18,704)
Net (loss) income attributable to controlling interests(73,059) 25,348 1,907 105,907
Preferred stock dividends(6,812) (6,812) (27,245) (27,245)
Net (loss) income attributable to common shares$(79,871) $18,536 $(25,338) $78,662
Earnings per share – basic:
Net (loss) income attributable to common shares$(1.23) $0.28 $(0.40) $1.19
Weighted average common shares outstanding65,164,060 65,599,091 65,184,013 65,486,108
Earnings per share – diluted:
Net (loss) income attributable to common shares$(1.23) $0.28 $(0.40) $1.18
Weighted average common shares outstanding65,164,060 66,581,720 65,184,013 66,086,379
Dividends declared per common share$0.47 $0.42 $1.73 $1.47


DUPONT FABROS TECHNOLOGY, INC.
RECONCILIATIONS OF NET INCOME TO NAREIT FFO, NORMALIZED FFO AND AFFO (1)
(unaudited and in thousands except share and per share data)
Three months ended December 31, Twelve months ended December 31,
2015 2014 2015 2014
Net (loss) income$(91,953) $29,737 $(4,086) $124,611
Depreciation and amortization26,399 25,109 104,044 96,780
Less: Non real estate depreciation and amortization(197) (155) (700) (707)
Impairment on investment in real estate122,472 122,472
NAREIT FFO56,721 54,691 221,730 220,684
Preferred stock dividends(6,812) (6,812) (27,245) (27,245)
NAREIT FFO attributable to common shares and common units49,909 47,879 194,485 193,439
Severance expense and equity acceleration 6,124
Loss on early extinguishment of debt 1,701
Normalized FFO attributable to common shares and common units49,909 47,879 200,609 195,140
Straight-line revenues, net of reserve14 3,377 13,424 7,673
Amortization and write-off of lease contracts above and below market value(117) (598) (880) (2,393)
Compensation paid with Company common shares1,313 1,546 5,268 6,191
Non real estate depreciation and amortization197 155 700 707
Amortization of deferred financing costs911 709 3,151 2,980
Improvements to real estate(1,026) 167 (3,459) (1,916)
Capitalized leasing commissions(2,174) (2,250) (4,200) (4,149)
AFFO attributable to common shares and common units$49,027 $50,985 $214,613 $204,233
NAREIT FFO attributable to common shares and common units per share – diluted$0.61 $0.58 $2.39 $2.37
Normalized FFO attributable to common shares and common units per share – diluted$0.61 $0.58 $2.46 $2.39
AFFO attributable to common shares and common units per share – diluted$0.60 $0.62 $2.64 $2.50
Weighted average common shares and common units outstanding – diluted81,369,758 82,255,562 81,414,764 81,770,189
(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, impairment charges on depreciable real estate assets 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 also present FFO attributable to common shares and OP units, which is FFO excluding preferred stock dividends. FFO attributable to common shares and OP units per share is calculated on a basis consistent with net income attributable to common shares and OP units and reflects adjustments to net income for preferred stock dividends.
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 period over period, 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 may 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 meet our cash needs, including our ability to pay dividends or make distributions.
We present FFO with adjustments to arrive at Normalized FFO. Normalized FFO is FFO attributable to common shares and units excluding severance expense and equity accelerations, gain or loss on early extinguishment of debt and gain or loss on derivative instruments. We also present FFO with supplemental adjustments to arrive at Adjusted FFO (“AFFO”). AFFO is Normalized FFO excluding straight-line revenue, compensation paid with Company common shares, below market lease amortization and write-offs net of above market lease amortization and write-offs, non real estate depreciation and amortization, amortization of deferred financing costs, improvements to real estate and capitalized leasing commissions. 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. We use 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)
December 31,
2015
December 31,
2014
ASSETS
Income producing property:
Land$94,203 $83,793
Buildings and improvements2,736,936 2,623,539
2,831,139 2,707,332
Less: accumulated depreciation(560,837) (504,869)
Net income producing property2,270,302 2,202,463
Construction in progress and land held for development300,939 358,965
Net real estate2,571,241 2,561,428
Cash and cash equivalents31,230 29,598
Rents and other receivables, net9,588 8,113
Deferred rent, net128,941 142,365
Lease contracts above market value, net6,029 8,054
Deferred costs, net23,774 24,874
Prepaid expenses and other assets44,689 48,295
Total assets$2,815,492 $2,822,727
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Line of credit$ $60,000
Mortgage notes payable, net of deferred financing costs114,075 113,667
Unsecured term loan, net of deferred financing costs249,172 248,945
Unsecured notes payable, net of discount and deferred financing costs834,963 588,767
Accounts payable and accrued liabilities32,301 26,973
Construction costs payable22,043 32,949
Accrued interest payable11,821 10,759
Dividend and distribution payable43,906 39,981
Lease contracts below market value, net4,132 7,037
Prepaid rents and other liabilities67,477 65,174
Total liabilities1,379,890 1,194,252
Redeemable noncontrolling interests – operating partnership479,189 513,134
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $.001 par value, 50,000,000 shares authorized:
Series A cumulative redeemable perpetual preferred stock, 7,400,000 issued and outstanding at December 31, 2015 and 2014185,000 185,000
Series B cumulative redeemable perpetual preferred stock, 6,650,000 issued and outstanding at December 31, 2015 and 2014166,250 166,250
Common stock, $.001 par value, 250,000,000 shares authorized, 66,105,650 shares issued and outstanding at December 31, 2015 and 66,061,804 shares issued and outstanding at December 31, 201466 66
Additional paid in capital684,968 764,025
Accumulated deficit(79,871)
Total stockholders’ equity956,413 1,115,341
Total liabilities and stockholders’ equity$2,815,492 $2,822,727


DUPONT FABROS TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Twelve months ended December 31,
2015 2014
Cash flow from operating activities
Net (loss) income$(4,086) $124,611
Adjustments to reconcile net (loss) income to net cash provided by operating activities
Depreciation and amortization104,044 96,780
Impairment on investment in real estate122,472
Loss on early extinguishment of debt 1,701
Straight-line revenues, net of reserve13,424 7,673
Amortization of deferred financing costs3,151 2,980
Amortization and write-off of lease contracts above and below market value(880) (2,393)
Compensation paid with Company common shares9,303 6,191
Changes in operating assets and liabilities
Rents and other receivables(1,475) 4,561
Deferred costs(4,233) (2,552)
Prepaid expenses and other assets4,901 (5,637)
Accounts payable and accrued liabilities5,053 1,395
Accrued interest payable1,062 776
Prepaid rents and other liabilities2,285 8,427
Net cash provided by operating activities255,021 244,513
Cash flow from investing activities
Investments in real estate – development(217,339) (265,374)
Land acquisition costs(8,600)
Interest capitalized for real estate under development(11,564) (9,644)
Improvements to real estate(3,459) (1,916)
Additions to non-real estate property(753) (316)
Net cash used in investing activities(241,715) (277,250)
Cash flow from financing activities
Line of credit:
Proceeds120,000 60,000
Repayments(180,000)
Unsecured term loan:
Proceeds 96,000
Unsecured notes payable:
Proceeds248,012
Payments of financing costs(4,740) (3,829)
Equity compensation proceeds249 4,363
Common stock repurchases(31,912)
Dividends and distributions:
Common shares(110,126) (85,422)
Preferred shares(27,245) (27,245)
Redeemable noncontrolling interests – operating partnership(25,912) (20,265)
Net cash (used in) provided by financing activities(11,674) 23,602
Net increase (decrease) in cash and cash equivalents1,632 (9,135)
Cash and cash equivalents, beginning29,598 38,733
Cash and cash equivalents, ending$31,230 $29,598
Supplemental information:
Cash paid for interest$51,073 $42,567
Deferred financing costs capitalized for real estate under development$737 $601
Construction costs payable capitalized for real estate under development$22,043 $32,949
Redemption of operating partnership units$9,544 $6,100
Adjustments to redeemable noncontrolling interests - operating partnership$8,105 $136,117


DUPONT FABROS TECHNOLOGY, INC.
Operating Properties
As of January 1, 2016
Property Property Location Year Built/
Renovated
Gross
Building
Area (2)
Computer Room
Square Feet
("CRSF") (2)
CRSF %
Leased
(3)
CRSF %
Commenced
(4)
Critical
Load
MW (5)
Critical
Load %
Leased
(3)
Critical
Load %
Commenced
(4)
Stabilized (1)
ACC2 Ashburn, VA 2001/2005 87,000 53,000 100% 100% 10.4 100% 100%
ACC3 Ashburn, VA 2001/2006 147,000 80,000 100% 100% 13.9 100% 100%
ACC4 Ashburn, VA 2007 347,000 172,000 100% 100% 36.4 97% 97%
ACC5 Ashburn, VA 2009-2010 360,000 176,000 99% 99% 36.4 100% 99%
ACC6 Ashburn, VA 2011-2013 262,000 130,000 100% 100% 26.0 100% 100%
ACC7 Phases I/II Ashburn, VA 2014-2015 224,000 118,000 100% 100% 21.9 100% 100%
CH1 Elk Grove Village, IL 2008-2012 485,000 231,000 100% 100% 36.4 100% 100%
CH2 Phase I Elk Grove Village, IL 2015 94,000 45,000 100% 100% 7.4 100% 100%
NJ1 Phase I Piscataway, NJ 2010 180,000 88,000 70% 70% 18.2 52% 52%
SC1 Santa Clara, CA 2011-2015 360,000 173,000 100% 100% 36.6 100% 100%
VA3 Reston, VA 2003 256,000 147,000 94% 94% 13.0 95% 95%
VA4 Bristow, VA 2005 230,000 90,000 100% 100% 9.6 100% 100%
Total Operating Properties 3,032,000 1,503,000 98% 98% 266.2 96% 96%
(1) Stabilized operating properties are either 85% or more leased and commenced or have been in service for 24 months or greater.
(2) Gross building area is the entire building area, including CRSF (the portion of gross building area where our customers' computer servers are located), 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 customers.
(3) Percentage leased is expressed as a percentage of CRSF or critical load, as applicable, that is subject to an executed lease. Leases executed as of January 1, 2016 represent $335 million of base rent on a GAAP basis and $341 million of base rent on a cash basis over the next twelve months. Both amounts include $18 million of revenue from management fees over the next twelve months.
(4) Percentage commenced is expressed as a percentage of CRSF or critical load, as applicable, where the lease has commenced under generally accepted accounting principles.
(5) Critical load (also referred to as IT load or load used by customers' servers or related equipment) is the power available for exclusive use by customers expressed in terms of megawatt, or MW, or kilowatt, or kW (1 MW is equal to 1,000 kW).


DUPONT FABROS TECHNOLOGY, INC.
Lease Expirations
As of January 1, 2016
The following table sets forth a summary schedule of lease expirations at our operating properties for each of the ten calendar years beginning with 2016. The information set forth in the table below assumes that customers exercise no renewal options and takes into account customers’ early termination options in determining the life of their leases under GAAP.
Year of Lease Expiration Number
of Leases
Expiring (1)
CRSF of
Expiring
Commenced
Leases
(in thousands)
(2)
% of
Leased
CRSF
Total kW
of Expiring
Commenced
Leases (2)
% of
Leased kW
% of
Annualized
Base Rent (3)
2016 2 9 0.6% 1,679 0.7% 0.9%
2017 12 76 5.2% 12,419 4.9% 4.9%
2018 21 180 12.3% 34,017 13.3% 13.5%
2019 20 291 19.8% 51,740 20.2% 21.0%
2020 15 182 12.4% 32,404 12.7% 12.7%
2021 16 280 19.1% 48,194 18.9% 17.6%
2022 8 106 7.2% 18,509 7.2% 7.1%
2023 9 103 7.0% 14,455 5.7% 4.9%
2024 8 112 7.6% 19,279 7.5% 9.0%
2025 3 47 3.2% 7,172 2.8% 3.4%
After 2025 6 80 5.6% 15,684 6.1% 5.0%
Total 120 1,466 100% 255,552 100% 100%
(1) Represents 37 customers with 120 lease expiration dates.
(2) CRSF is that portion of gross building area where customers locate their computer servers. One MW is equal to 1,000 kW.
(3) Annualized base rent represents the monthly contractual base rent (defined as cash base rent before abatements) multiplied by 12 for commenced leases as of January 1, 2016.


DUPONT FABROS TECHNOLOGY, INC.
Top 15 Customers
As of January 1, 2016
The following table presents our top 15 customers based on annualized monthly contractual base rent at our operating properties as of January 1, 2016:
Customer Number
of
Buildings
Number
of
Markets
Remaining
Term
% of
Annualized
Base Rent (1)
1Microsoft 7 3 5.6 22.9%
2Facebook 4 1 4.9 21.3%
3Rackspace 3 2 9.6 9.5%
4Fortune 25 Investment Grade Rated Company 3 3 4.6 9.5%
5Yahoo! (2) 2 2 2.2 6.9%
6Fortune 1000 leading Software as a Service (SaaS) Provider, Not Rated 4 2 6.6 5.9%
7Server Central 1 1 5.6 2.6%
8Dropbox 1 1 3.0 1.7%
9IAC 1 1 3.3 1.6%
10Anexio 4 2 8.0 1.4%
11Symantec 2 1 1.5 1.4%
12Fortune 25 Investment Grade Rated Company 2 2 5.2 1.2%
13Zynga (3) 1 1 0.3 1.2%
14UBS 1 1 9.5 1.1%
15Sanofi Aventis 2 1 5.5 0.9%
Total 89.1%
(1) Annualized base rent represents monthly contractual base rent (defined as cash base rent before abatements) multiplied by 12 for commenced leases as of January 1, 2016.
(2) Comprised of a lease at ACC4 which is 6.3% of annualized base rent that has been fully subleased to another DFT customer and a lease at NJ1 which is 0.6% of annualized base rent.
(3) Comprised of leases at ACC5 that have been fully subleased to another DFT customer.


DUPONT FABROS TECHNOLOGY, INC.
Same Store Analysis
($ in thousands)
Same Store PropertiesThree Months Ended Year Ended
31-Dec-15 31-Dec-14 % Change 30-Sep-15 % Change 31-Dec-15 31-Dec-14 % Change
Revenue:
Base rent$70,895 $72,742 (2.5)% $73,398 (3.4)% $285,447 $284,430 0.4%
Recoveries from tenants35,364 31,886 10.9% 34,595 2.2% 137,337 124,750 10.1%
Other revenues528 473 11.6% 494 6.9% 1,983 1,849 7.2%
Total revenues106,787 105,101 1.6% 108,487 (1.6)% 424,767 411,029 3.3%
Expenses:
Property operating costs33,334 29,372 13.5% 31,232 6.7% 123,627 115,862 6.7%
Real estate taxes and insurance4,646 2,863 62.3% 5,111 (9.1)% 20,456 13,723 49.1%
Other expenses137 1,513 N/M 10 N/M 191 1,608 (88.1)%
Total expenses38,117 33,748 12.9% 36,353 4.9% 144,274 131,193 10.0%
Net operating income (1)68,670 71,353 (3.8)% 72,134 (4.8)% 280,493 279,836 0.2%
Straight-line revenues, net of reserve3,612 2,594 39.2% 4,394 (17.8)% 15,837 7,127 N/M
Amortization of lease contracts above and below market value(116) (598) (80.6)% (585) N/A (879) (2,393) (63.3)%
Cash net operating income (1)$72,166 $73,349 (1.6)% $75,943 (5.0)% $295,451 $284,570 3.8%
Note: Same Store Properties represent those properties placed into service on or before January 1, 2014 and excludes ACC7 and CH2.
Same Store, Same Capital PropertiesThree Months Ended Year Ended
31-Dec-15 31-Dec-14 % Change 30-Sep-15 % Change 31-Dec-15 31-Dec-14 % Change
Revenue:
Base rent$60,542 $65,087 (7.0)% $62,998 (3.9)% $247,309 $258,432 (4.3)%
Recoveries from tenants27,163 26,706 1.7% 26,266 3.4% 107,428 107,049 0.4%
Other revenues487 443 9.9% 464 5.0% 1,853 1,732 7.0%
Total revenues88,192 92,236 (4.4)% 89,728 (1.7)% 356,590 367,213 (2.9)%
Expenses:
Property operating costs26,124 24,872 5.0% 24,681 5.8% 99,692 100,033 (0.3)%
Real estate taxes and insurance3,126 1,918 63.0% 3,219 (2.9)% 12,589 10,626 18.5%
Other expenses137 1,510 N/M 9 N/M 173 1,587 (89.1)%
Total expenses29,387 28,300 3.8% 27,909 5.3% 112,454 112,246 0.2%
Net operating income (1)58,805 63,936 (8.0)% 61,819 (4.9)% 244,136 254,967 (4.2)%
Straight-line revenues, net of reserve3,883 3,270 18.7% 4,329 (10.3)% 16,606 8,476 N/M
Amortization of lease contracts above and below market value(116) (598) (80.6)% (585) N/A (879) (2,393) (63.3)%
Cash net operating income (1)$62,572 $66,608 (6.1)% $65,563 (4.6)% $259,863 $261,050 (0.5)%
Note: Same Store, Same Capital properties represent those properties placed into service on or before January 1, 2014 and have less than 10% of additional critical load developed after January 1, 2014. Excludes SC1, ACC7 and CH2.

(1) See next page for a reconciliation of Net Operating Income and Cash Net Operating Income to GAAP measures.


DUPONT FABROS TECHNOLOGY, INC.
Same Store Analysis - Reconciliations of Operating Income
to Net Operating Income and Cash Net Operating Income (1)
($ in thousands)
Reconciliation of Operating Income to Same Store Net Operating Income and Cash Net Operating Income
Three Months Ended Year Ended
31-Dec-15 31-Dec-14 30-Sep-15 31-Dec-15 31-Dec-14
Operating (loss) income$(79,523) $39,579 $42,978 $39,575 $162,875
Add-back: non-same store operating loss4,512 7,707 4,464 23,482 22,396
Same Store:
Operating (loss) income(75,011) 47,286 47,442 63,057 185,271
Depreciation and amortization24,414 24,067 24,692 98,169 94,565
Impairment on investment in real estate119,267 119,267
Net operating income68,670 71,353 72,134 280,493 279,836
Straight-line revenues, net of reserve3,612 2,594 4,394 15,837 7,127
Amortization of lease contracts above and below market value(116) (598) (585) (879) (2,393)
Cash net operating income$72,166 $73,349 $75,943 $295,451 $284,570
Reconciliation of Operating Income to Same Store, Same Capital Net Operating Income and Cash Net Operating Income
Three Months Ended Year Ended
31-Dec-15 31-Dec-14 30-Sep-15 31-Dec-15 31-Dec-14
Operating (loss) income$(79,523) $39,579 $42,978 $39,575 $162,875
Add-back: non-same store operating (income) loss(1,564) 3,118 (2,110) 885 7,200
Same Store:
Operating (loss) income(81,087) 42,697 40,868 40,460 170,075
Depreciation and amortization20,625 21,239 20,951 84,409 84,892
Impairment on investment in real estate119,267 119,267
Net operating income58,805 63,936 61,819 244,136 254,967
Straight-line revenues, net of reserve3,883 3,270 4,329 16,606 8,476
Amortization of lease contracts above and below market value(116) (598) (585) (879) (2,393)
Cash net operating income$62,572 $66,608 $65,563 $259,863 $261,050
(1) Net Operating Income ("NOI") represents total revenues less property operating costs, real estate taxes and insurance, and other expenses (each as reflected in the consolidated statements of operations) for the properties included in the analysis. Cash Net Operating Income ("Cash NOI") is NOI less straight-line revenues, net of reserve and amortization of lease contracts above and below market value for the properties included in the analysis.
We use NOI and Cash NOI as supplemental performance measures because, in excluding depreciation and amortization, impairment charges on depreciable real estate assets and gains and losses from property dispositions, each provides a performance measure that, when compared period over period, captures trends in occupancy rates, rental rates and operating expenses. However, because NOI and Cash NOI exclude depreciation and amortization, impairment charges on depreciable real estate assets and gains and losses from property dispositions, and capture neither the changes in the value of our properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effects and could materially impact our results from operations, the utility of NOI and Cash NOI as a measure of our performance is limited.
Other REITs may not calculate NOI and Cash NOI in the same manner we do and, accordingly, our NOI and Cash NOI may not be comparable to the NOI and Cash NOI of other REITs. NOI and Cash NOI should not be considered as an alternative to operating income (as computed in accordance with GAAP).


DUPONT FABROS TECHNOLOGY, INC.
Development Projects
As of December 31, 2015
($ in thousands)
Property Property
Location
Gross
Building
Area (1)
CRSF (2) Critical
Load
MW (3)
Estimated
Total Cost (4)
Construction
in Progress &
Land Held for
Development
(5)
CRSF %
Pre-
leased
Critical
Load %
Pre-
leased
Current Development Projects
ACC7 Phase III Ashburn, VA 126,000 68,000 11.9 $100,000 - $104,000 $84,622 % %
CH2 Phase II Elk Grove Village, IL 74,000 35,000 5.7 60,000 - 64,000 53,880 25% 25%
CH2 Phase III Elk Grove Village, IL 168,000 80,000 12.5 140,000 - 144,000 88,336 % %
368,000 183,000 30.1 300,000 - 312,000 226,838
Future Development Projects/Phases
ACC7 Phase IV Ashburn, VA 96,000 52,000 7.9 35,993 35,993
NJ1 Phase II (6) Piscataway, NJ 180,000 88,000 18.2 18,273 18,273
276,000 140,000 26.1 54,266 54,266
Land Held for Development
ACC8 Ashburn, VA 100,000 50,000 10.4 4,243
CH3 (7) Elk Grove Village, IL 214,000 119,000 22.0 8,320
SC2 (8) Santa Clara, CA 150,000 69,000 16.0 7,272
464,000 238,000 48.4 19,835
Total 1,108,000 561,000 104.6 $300,939
(1) Gross building area is the entire building area, including CRSF (the portion of gross building area where our customers’ computer servers are located), 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 customers. The respective amounts listed for each of the “Land Held for Development” sites are estimates.
(2) CRSF is that portion of gross building area where customers locate their computer servers. The respective amounts listed for each of the “Land Held for Development” sites are estimates.
(3) Critical load (also referred to as IT load or load used by customers’ servers or related equipment) is the power available for exclusive use by customers expressed in terms of MW or kW (1 MW is equal to 1,000 kW). The respective amounts listed for each of the “Land Held for Development” sites are estimates.
(4) Current development projects include land, capitalization for construction and development and capitalized interest and operating carrying costs, as applicable, upon completion. Future development projects/phases include land, shell and underground work through the opening of the phase(s) that are either under current development or in service.
(5) Amount capitalized as of December 31, 2015. Future development projects/phases include land, shell and underground work through the opening of the phase(s) that are either under current development or in service.
(6) NJ1 is being marketed for sale. Accordingly, we do not believe that we will develop the second phase of this data center prior to the sale.
(7) Amounts listed for gross building area, CRSF and critical load are current estimates.
(8) Amounts listed for gross building area, CRSF and critical load are current estimates. We are currently evaluating the best use for this land. Options include a stand-alone data center, an additional phase of SC1 or a powered base shell.


DUPONT FABROS TECHNOLOGY, INC.
Debt Summary as of December 31, 2015
($ in thousands)
December 31, 2015
Amounts (1) % of Total Rates Maturities
(years)
Secured$115,000 9% 2.0% 2.2
Unsecured1,100,000 91% 4.9% 5.6
Total$1,215,000 100% 4.6% 5.3
Fixed Rate Debt:
Unsecured Notes due 2021$600,000 49% 5.9% 5.7
Unsecured Notes due 2023 (2)250,000 21% 5.6% 7.5
Fixed Rate Debt850,000 70% 5.8% 6.2
Floating Rate Debt:
Unsecured Credit Facility % % 2.4
Unsecured Term Loan250,000 21% 1.7% 3.6
ACC3 Term Loan115,000 9% 2.0% 2.2
Floating Rate Debt365,000 30% 1.8% 3.1
Total$1,215,000 100% 4.6% 5.3
Note: We capitalized interest and deferred financing cost amortization of $3.2 million and $12.3 million during the three months and year ended December 31, 2015, respectively.
(1) Principal amounts exclude deferred financing costs.
(2) Principal amount excludes original issue discount of $1.9 million as of December 31, 2015.


Debt Principal Repayments as of December 31, 2015
($ in thousands)
Year Fixed Rate (1) Floating Rate (1) Total (1) % of Total Rates
2016 $ $3,750 (4) $3,750 0.3% 2.0%
2017 8,750 (4) 8,750 0.7% 2.0%
2018 102,500 (4) 102,500 8.4% 2.0%
2019 250,000 (5) 250,000 20.6% 1.7%
2020
2021 600,000 (2) 600,000 49.4% 5.9%
2022
2023 250,000 (3) 250,000 20.6% 5.6%
Total $850,000 $365,000 $1,215,000 100% 4.6%
(1) Principal amounts exclude deferred financing costs.
(2) The 5.875% Unsecured Notes due 2021 mature on September 15, 2021.
(3) The 5.625% Unsecured Notes due 2023 mature on June 15, 2023. Principal amount excludes original issue discount of $1.9 million as of December 31, 2015.
(4) The ACC3 Term Loan matures on March 27, 2018 with no extension option. Quarterly principal payments of $1.25 million begin on April 1, 2016, increase to $2.5 million on April 1, 2017 and continue through maturity.
(5) The Unsecured Term Loan matures on July 21, 2019 with no extension option.


DUPONT FABROS TECHNOLOGY, INC.
Selected Unsecured Debt Metrics(1)
12/31/15 12/31/14
Interest Coverage Ratio (not less than 2.0) 4.8 6.1
Total Debt to Gross Asset Value (not to exceed 60%) 35.9% 30.8%
Secured Debt to Total Assets (not to exceed 40%) 3.4% 3.5%
Total Unsecured Assets to Unsecured Debt (not less than 150%) 245% 314%
(1) These selected metrics relate to DuPont Fabros Technology, LP's outstanding unsecured notes. DuPont Fabros Technology, Inc. is the general partner of DuPont Fabros Technology, LP.


Capital Structure as of December 31, 2015
(in thousands except per share data)
Line of Credit $
Mortgage Notes Payable 115,000
Unsecured Term Loan 250,000
Unsecured Notes 850,000
Total Debt 1,215,000 29.3%
Common Shares81% 66,106
Operating Partnership (“OP”) Units19% 15,073
Total Shares and Units100% 81,179
Common Share Price at December 31, 2015 $31.79
Common Share and OP Unit Capitalization $2,580,680
Preferred Stock ($25 per share liquidation preference) 351,250
Total Equity 2,931,930 70.7%
Total Market Capitalization $4,146,930 100.0%


DUPONT FABROS TECHNOLOGY, INC.
Common Share and OP Unit
Weighted Average Amounts Outstanding
Q4 2015 Q4 2014 2015 2014
Weighted Average Amounts Outstanding for EPS Purposes:
Common Shares - basic65,164,060 65,599,091 65,184,013 65,486,108
Effect of dilutive securities 982,629 600,271
Common Shares - diluted65,164,060 66,581,720 65,184,013 66,086,379
Weighted Average Amounts Outstanding for FFO,
Normalized FFO and AFFO Purposes:
Common Shares - basic65,164,060 65,599,091 65,184,013 65,486,108
OP Units - basic15,402,191 15,519,128 15,415,186 15,567,019
Total Common Shares and OP Units80,566,251 81,118,219 80,599,199 81,053,127
Effect of dilutive securities803,507 1,137,343 815,565 717,062
Common Shares and Units - diluted81,369,758 82,255,562 81,414,764 81,770,189
Period Ending Amounts Outstanding:
Common Shares66,105,650
OP Units15,073,563
Total Common Shares and Units81,179,213


DUPONT FABROS TECHNOLOGY, INC.
2016 Guidance
The earnings guidance/projections provided below are based on current expectations and are forward-looking.
Expected Q1 2016
per share
Expected 2016
per share
Net income per common share and common unit - diluted $0.34 to $0.36 $1.30 to $1.50
Depreciation and amortization, net 0.32 1.35
NAREIT FFO per common share and common unit - diluted (1) $0.66 to $0.68 $2.65 to $2.85
Normalized FFO per common share and common unit - diluted (1) $0.66 to $0.68 $2.65 to $2.85
Straight-line revenues, net of reserve (0.02) 0.05
Amortization of lease contracts above and below market value (0.01)
Compensation paid with Company common shares 0.02 0.07
Non real estate depreciation and amortization 0.01
Amortization of deferred financing costs 0.01 0.05
Improvements to real estate (0.02) (0.08)
Capitalized leasing commissions (0.01) (0.04)
AFFO per common share and common unit - diluted (1) $0.64 to $0.66 $2.70 to $2.90


2016 Debt Assumptions
Weighted average debt outstanding $1,385.0 million
Weighted average interest rate (one month LIBOR avg. 0.83%) 4.87%
Total interest costs $67.4 million
Amortization of deferred financing costs 4.9 million
Interest expense capitalized (10.4) million
Deferred financing costs amortization capitalized (0.8) million
Total interest expense after capitalization $61.1 million
2016 Other Guidance Assumptions
Total revenues $500 to $520 million
Base rent (included in total revenues) $340 to $355 million
General and administrative expense $22 to $23 million
Investments in real estate - development (2) $280 to $320 million
Improvements to real estate excluding development $6 to $7 million
Preferred stock dividends $27 million
Annualized common stock dividend $1.88 per share
Weighted average common shares and OP units - diluted 81.5 million
Acquisitions of income producing properties No amounts budgeted
(1) For information regarding FFO and Normalized FFO, see “Reconciliations of Net Income to FFO, Normalized FFO and AFFO” in this earnings release.
(2) Represents cash spend expected in 2016 for CH2 Phase II, CH2 Phase III and ACC7 Phase III which are currently in development and SC1 Phase III, ACC7 Phase IV, TOR1 Phase I (Toronto), ACC9 Phase I and CH3 Phase I which are currently not in development and require Board approval.

Investor Relations Contact: Jeffrey H. Foster Chief Financial Officer jfoster@dft.com (202) 478-2333

Source:DuPont Fabros Technology, Inc.