WASHINGTON, July 27, 2017 (GLOBE NEWSWIRE) -- DuPont Fabros Technology, Inc. (NYSE:DFT) announces results for the quarter ended June 30, 2017.  All per share results are reported on a fully diluted basis.

Highlights
  • As of July 27, 2017, our operating portfolio was 98% leased and commenced as measured by critical load (in megawatts, or "MW") and computer room square feet ("CRSF"), and 48% of the MW under development have been pre-leased.
  • Second Quarter 2017 Highlights:
    • Double digit growth rates versus prior year quarter:
      • Normalized Funds from Operations ("FFO") per share: +22%
      • Adjusted FFO ("AFFO"): +27%
    • Placed ACC9 Phase I, totaling 14.40 MW and 90,000 CRSF, into service 70% leased.
    • As disclosed in our first quarter 2017 earnings release:
      • Executed three pre-leases totaling 28.80 MW and 161,822 CRSF in our ACC9 and CH3 data centers, with a weighted average lease term of 8.5 years.
      • Commenced development of ACC10 Phase I in Ashburn, Virginia, comprising 15.00 MW and 91,000 CRSF, with expected delivery in the second quarter of 2018.
      • Commenced development of CH3 Phase II, comprising 12.80 MW and 89,000 CRSF, with expected delivery in the second quarter of 2018.
  • Third Quarter 2017 Highlights to date:
    • Extended the terms of two leases totaling 3.47 MW and 18,116 CRSF by 5.0 years each.

Agreement to Merge with Digital Realty

On June 9, 2017, we and Digital Realty Trust, Inc. ("DLR") announced that DFT and our OP and DLR, Digital Realty Trust, L.P., DLR's operating partnership ("DLR OP"), and three other DLR subsidiaries entered into an Agreement and Plan of Merger (the "Merger Agreement").  Under the Merger Agreement:
  • DFT will be merged with and into a DLR merger subsidiary and become a wholly-owned subsidiary of DLR; and
  • another DLR merger subsidiary will be merged with and into our OP, and our OP will become a subsidiary of DLR.

The consummation of the mergers are subject to certain customary closing conditions.  Pursuant to the terms and conditions in the Merger Agreement, at the effective time of the mergers:
  • each share of DFT's common stock will be converted into the right to receive 0.545 shares of DLR common stock;
  • each common unit of partnership interests in the OP will be converted into the right to receive 0.545 common units in the DLR OP, or, in the alternative, each unit holder may elect to redeem his or her units and receive 0.545 shares of DLR common stock for each unit; and
  • each share of DFT's 6.625% Series C Cumulative Redeemable Perpetual Preferred Stock will be converted into the right to receive one share of a newly designated class of preferred stock of DLR, which will have substantially similar rights, privileges, preferences and interests as DFT's 6.625% Series C Preferred Stock.

Second Quarter 2017 Results

For the quarter ended June 30, 2017, earnings were $0.38 per share compared to $0.49 per share in the second quarter of 2016.  The decrease in earnings per share was primarily due to:
  • Costs incurred in the second quarter of 2017 of $0.08 per share associated with the pending merger with DLR,
  • Gain on the sale of the NJ1 data center of $0.23 per share in the second quarter of 2016, partially offset by
  • Write-off of issuance costs in the second quarter of 2016 associated with the redemption of preferred shares of $0.10 per share and
  • Severance costs and equity accelerations for the NJ1 employees in the second quarter of 2016 totaling $0.01 per share.

Excluding these items, earnings increased $0.09 per share, or 24%, year over year, which was primarily due to new leases that commenced and lower preferred stock dividends.  For the quarter ended June 30, 2017, revenues were $140.7 million, an increase of 9%, or $12.2 million, over the second quarter of 2016.  The increase in revenues was primarily due to new leases commencing, partially offset by lower à la carte project revenue.

For the quarter ended June 30, 2017, NAREIT FFO was $0.70 per share compared to $0.53 per share for the prior year quarter.  NAREIT FFO for the second quarter of 2017 included $0.08 per share of merger costs and, for the second quarter of 2016, included $0.10 per share of issuance costs associated with redeemed preferred shares and $0.01 of severance expense and equity acceleration associated with the sale of the NJ1 data center.  The increase of $0.17 per share of NAREIT FFO is due to the items discussed above and below.

Normalized FFO for the quarter ended June 30, 2017 was $0.78 per share compared to $0.64 per share for the second quarter of 2016.  Normalized FFO increased $0.14 per share, or 22%, from the prior year quarter primarily due to the following:
  • Increased operating income, excluding depreciation of $0.10 per share, primarily due to new leases commencing and
  • Lower preferred stock dividends of $0.04 per share due to fewer preferred shares outstanding and a lower dividend rate.

First Half 2017 Results

For the six months ended June 30, 2017, earnings were $0.83 per share compared to $0.86 per share in the prior year period.  The decrease in earnings per share was primarily due to:
  • Costs incurred in the second quarter of 2017 of $0.08 per share associated with the pending merger with DLR,
  • Gain on the sale of the NJ1 data center of $0.23 per share in the second quarter of 2016, partially offset by
  • Write-off of issuance costs in the second quarter of 2016 associated with the redemption of preferred shares of $0.10 per share and
  • Severance costs and equity accelerations for the Chief Revenue Officer in the first quarter of 2017 and for the NJ1 employees in the second quarter of 2016, each totaling $0.01 per share for each period.

Excluding these items, earnings increased $0.18 per share, or 24%, year over year, which was primarily due to new leases that commenced and lower preferred stock dividends.  For the six months ended June 30, 2017, revenues were $280.2 million, an increase of 11%, or $27.5 million, over the first half of 2016.  The increase in revenues was primarily due to new leases commencing, partially offset by lower à la carte project revenue.

For the six months ended June 30, 2017, NAREIT FFO was $1.46 per share compared to $1.19 per share for the prior year period.  NAREIT FFO for 2017 included $0.08 per share of merger costs and $0.01 per share of severance expense and equity acceleration associated with the departure of our Chief Revenue Officer and for 2016 included $0.10 per share of issuance costs associated with redeemed preferred shares and $0.01 of severance expense and equity acceleration associated with the sale of the NJ1 data center.  The increase of $0.27 per share of NAREIT FFO is due to the items discussed above and below.

Normalized FFO for the six months ended June 30, 2017 was $1.55 per share compared to $1.31 per share for the prior year period.  Normalized FFO increased $0.24 per share, or 18%, from the prior year period primarily due to the following:
  • Increased operating income, excluding depreciation of $0.21 per share, primarily due to new leases commencing and
  • Lower preferred stock dividends of $0.08 per share due to fewer preferred shares outstanding and a lower dividend rate, partially offset by
  • $0.05 per share from the issuance of common equity in the first quarter of 2016.

Portfolio Update

During the second quarter 2017, we:
  • Executed three pre-leases totaling 28.80 MW and 161,822 CRSF:
    • One pre-lease was for the entire CH3 Phase I, comprising 14.40 MW and 71,506 CRSF.  This lease is expected to commence in the first quarter of 2018 when CH3 Phase I is placed into service.  CH3 Phase I is now 100% pre-leased with respect to both critical load and CRSF.
    • One pre-lease was for 7.20 MW and 45,158 CRSF in ACC9 Phase I.  This pre-lease commenced on June 1, 2017, and ACC9 Phase I is 70% leased on critical load and CRSF.
    • One pre-lease was for 7.20 MW and 45,158 CRSF in ACC9 Phase II.  This pre-lease is expected to commence in the third quarter of 2017 when ACC9 Phase II is placed into service.  ACC9 Phase II is now 50% pre-leased on both critical load and CRSF.

Subsequent to the second quarter 2017, we:
  • Extended the terms of two leases totaling 3.47 MW and 18,116 CRSF.
    • One lease at ACC6 totaling 2.17 MW and 9,966 CRSF was extended by 5.0 years.  Cash base rent will increase by 3.0% when the extension period begins on July 1, 2018 and GAAP base rent will increase by 10.5% immediately.
    • One lease at CH1 totaling 1.30 MW and 8,150 CRSF was extended by 5.0 years.  Cash base rent will increase by 3.0% when the extension period begins on July 1, 2018 and GAAP base rent will increase by 10.5% immediately.

Year to date, we:
  • Executed six new leases (including lease amendments and pre-leases), with a weighted average lease term of 8.1 years, totaling 34.42 MW and 200,765 CRSF, which are expected to generate approximately $36.7 million of annualized GAAP base rent revenue, which is equivalent to a GAAP rate of $89 per kW per month.  These leases are expected to generate approximately $46.4 million of GAAP annualized revenue, which includes estimated amounts of operating expense recoveries, net of recovery of metered power, which results in a GAAP rate of $112 per kW per month.
  • Extended the terms of two leases totaling 3.47 MW by 5.0 years.  On a weighted average basis, cash base rents will increase 3.0% when the extension periods begin and GAAP base rents increased 10.5% immediately.  The average GAAP base rent rate related to these extensions was $128 per kW per month and, including operating expense recoveries, was $154 per kW per month.
  • Commenced six leases totaling 20.25 MW and 123,501 CRSF.

Development Update

Below is a summary of our projects currently under development:
Data Center Phase     Critical LoadCapacity (MW)     Anticipated Placed in Service Date     Percentage Pre-Leased  CRSF / Critical Load
SC1 Phase III     16.0       Q3 2017     100% / 100%
ACC9 Phase II     14.4       Q3 2017     50% / 50%
TOR1 Phase IA     6.0       Q4 2017    
CH3 Phase I     14.4       Q1 2018     100% / 100%
CH3 Phase II     12.8       Q2 2018    
ACC10 Phase I     15.0       Q2 2018    
      78.6              

Balance Sheet and Liquidity

As of July 27, 2017, we had $423.5 million in borrowings under our revolving credit facility, leaving $326.5 million available for additional borrowings.

In order to provide liquidity through the outside merger closing date of November 15, 2017, we have obtained a 364-day bridge loan commitment of $200 million from Goldman Sachs Bank USA.  As of July 27, 2017, there are no borrowings under this bridge loan commitment.

Dividend

Our second quarter 2017 dividend of $0.50 per share was paid on July 17, 2017 to shareholders of record as of July 3, 2017.  The anticipated 2017 annualized dividend of $2.00 per share represents a yield of approximately 3.3% based on our current stock price.

Guidance

We are no longer giving guidance due to the pending merger with Digital Realty Trust.

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 three major U.S. markets, which total 3.5 million gross square feet and 301.5 megawatts of available critical load to power the servers and computing equipment of its customers.  The Company is in the process of expanding into two new markets.  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 proposed merger with DLR will not be consummated, 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 the acquisition of development sites, 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, 2016 and the quarterly report on Form 10-Q for the quarter ended March 31, 2017 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 (unaudited and in thousands except share and per share data)
           
    Three months ended June 30,     Six months ended June 30,
    2017     2016     2017     2016
Revenues:                      
Base rent   $ 92,931       $ 83,362       $ 184,199       $ 165,895  
Recoveries from tenants   46,073       41,695       91,368       80,389  
Other revenues   1,706       3,481       4,627       6,403  
Total revenues   140,710       128,538       280,194       252,687  
Expenses:                      
Property operating costs   41,472       37,933       81,663       73,888  
Real estate taxes and insurance   5,029       5,840       10,039       11,156  
Depreciation and amortization   28,948       26,323       57,155       52,166  
General and administrative   6,276       5,274       13,088       10,849  
Transaction expenses   7,128             7,128        
Other expenses   1,307       3,193       4,012       5,542  
Total expenses   90,160       78,563       173,085       153,601  
Operating income   50,550       49,975       107,109       99,086  
Interest:                      
Expense incurred   (11,793 )     (11,563 )     (23,252 )     (23,132 )
Amortization of deferred financing costs   (794 )     (919 )     (1,619 )     (1,764 )
Gain on sale of real estate         23,064             23,064  
Net income   37,963       60,557       82,238       97,254  
Net income attributable to redeemable noncontrolling interests - operating partnership   (4,506 )     (7,467 )     (10,218 )     (12,945 )
Net income attributable to controlling interests   33,457       53,090       72,020       84,309  
Preferred stock dividends   (3,333 )     (6,964 )     (6,666 )     (13,775 )
Issuance costs associated with redeemed preferred stock         (8,827 )           (8,827 )
Net income attributable to common shares   $ 30,124       $ 37,299       $ 65,354       $ 61,707  
Earnings per share - basic:                      
Net income attributable to common shares   $ 0.39       $ 0.50       $ 0.84       $ 0.87  
Weighted average common shares outstanding   77,486,297       74,370,577       77,080,615       70,661,406  
Earnings per share - diluted:                      
Net income attributable to common shares   $ 0.38       $ 0.49       $ 0.83       $ 0.86  
Weighted average common shares outstanding   78,487,973       75,231,634       78,071,944       71,518,495  
Dividends declared per common share   $ 0.50       $ 0.47       $ 1.00       $ 0.94  

           
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 June 30,     Six months ended June 30,
    2017     2016     2017     2016
Net income   $ 37,963       $ 60,557       $ 82,238       $ 97,254  
Depreciation and amortization   28,948       26,323       57,155       52,166  
Less: Non-real estate depreciation and amortization   (231 )     (200 )     (435 )     (394 )
Gain on sale of real estate         (23,064 )           (23,064 )
NAREIT FFO   66,680       63,616       138,958       125,962  
Preferred stock dividends   (3,333 )     (6,964 )     (6,666 )     (13,775 )
Issuance costs associated with redeemed preferred shares         (8,827 )           (8,827 )
NAREIT FFO attributable to common shares and common units   63,347       47,825       132,292       103,360  
Transaction expenses   7,128             7,128        
Severance expense and equity acceleration         891       532       891  
Issuance costs associated with redeemed preferred shares         8,827             8,827  
Normalized FFO attributable to common shares and common units   70,475       57,543       139,952       113,078  
Straight-line revenues, net of reserve   741       696       2,459       (1,041 )
Amortization and write-off of lease contracts above and below market value   (94 )     (106 )     (365 )     (222 )
Compensation paid with Company common shares   2,198       1,521       4,570       3,290  
Non-real estate depreciation and amortization   231       200       435       394  
Amortization of deferred financing costs   794       919       1,619       1,764  
Improvements to real estate   (232 )     (999 )     (418 )     (3,098 )
Capitalized leasing commissions   (614 )     (1,839 )     (890 )     (3,450 )
AFFO attributable to common shares and common units   $ 73,499       $ 57,935       $ 147,362       $ 110,715  
NAREIT FFO attributable to common shares and common units per share - diluted   $ 0.70       $ 0.53       $ 1.46       $ 1.19  
Normalized FFO attributable to common shares and common units per share - diluted   $ 0.78       $ 0.64       $ 1.55       $ 1.31  
Weighted average common shares and common units outstanding - diluted   90,303,991       89,985,913       90,307,954       86,520,893  

(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 transaction expenses, severance expense and equity accelerations, gain or loss on early extinguishment of debt, gain or loss on derivative instruments and write-offs of original issuance costs for redeemed preferred shares.  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)
           
    June 30,  2017     December 31,  2016
    (unaudited)      
ASSETS          
Income producing property:          
Land   $ 107,539       $ 105,890  
Buildings and improvements   3,141,102       3,018,361  
    3,248,641       3,124,251  
Less: accumulated depreciation   (716,719 )     (662,183 )
Net income producing property   2,531,922       2,462,068  
Construction in progress and property held for development   551,258       330,983  
Net real estate   3,083,180       2,793,051  
Cash and cash equivalents   31,125       38,624  
Rents and other receivables, net   9,422       11,533  
Deferred rent, net   120,599       123,058  
Deferred costs, net   23,673       25,776  
Prepaid expenses and other assets   48,467       46,422  
Total assets   $ 3,316,466       $ 3,038,464  
LIABILITIES AND STOCKHOLDERS' EQUITY          
Liabilities:          
Line of credit   $ 335,997       $ 50,926  
Mortgage notes payable, net of deferred financing costs   107,175       110,733  
Unsecured term loan, net of deferred financing costs   249,143       249,036  
Unsecured notes payable, net of discount and deferred financing costs   838,461       837,323  
Accounts payable and accrued liabilities   39,426       36,909  
Construction costs payable   74,795       56,428  
Accrued interest payable   11,515       11,592  
Dividend and distribution payable   46,431       46,352  
Prepaid rents and other liabilities   67,629       81,062  
Total liabilities   1,770,572       1,480,361  
Redeemable noncontrolling interests - operating partnership   714,494       591,101  
Commitments and contingencies          
Stockholders' equity:          
Preferred stock, $.001 par value, 50,000,000 shares authorized:          
Series C cumulative redeemable perpetual preferred stock, 8,050,000 shares issued and outstanding at June 30, 2017 and December 31, 2016   201,250       201,250  
Common stock, $.001 par value, 250,000,000 shares authorized, 77,845,588  shares issued and outstanding at June 30, 2017 and 75,914,763 shares issued and outstanding at December 31, 2016   78       76  
Additional paid in capital   631,022       766,732  
Retained earnings          
Accumulated other comprehensive loss   (950 )     (1,056 )
Total stockholders' equity   831,400       967,002  
Total liabilities and stockholders' equity   $ 3,316,466       $ 3,038,464  

     
DUPONT FABROS TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited and in thousands)
     
    Six months ended June 30,
    2017     2016
Cash flow from operating activities          
Net income   $ 82,238       $ 97,254  
Adjustments to reconcile net income to net cash provided by operating activities          
Depreciation and amortization   57,155       52,166  
Gain on sale of real estate         (23,064 )
Straight-line revenues, net of reserve   2,459       (1,041 )
Amortization of deferred financing costs   1,619       1,764  
Amortization and write-off of lease contracts above and below market value   (365 )     (222 )
Compensation paid with Company common shares   4,734       3,290  
Changes in operating assets and liabilities          
Rents and other receivables   2,111       192  
Deferred costs   (891 )     (3,465 )
Prepaid expenses and other assets   (1,328 )     1,750  
Accounts payable and accrued liabilities   2,130       27  
Accrued interest payable   (82 )     189  
Prepaid rents and other liabilities   (12,437 )     (4,399 )
Net cash provided by operating activities   137,343       124,441  
Cash flow from investing activities          
Net proceeds from sale of real estate         123,545  
Investments in real estate - development   (301,504 )     (101,867 )
Acquisition of real estate   (12,250 )      
Acquisition of real estate - related party         (20,168 )
Interest capitalized for real estate under development   (8,895 )     (6,118 )
Improvements to real estate   (418 )     (3,098 )
Additions to non-real estate property   (196 )     (426 )
Net cash used in investing activities   (323,263 )     (8,132 )
Cash flow from financing activities          
Line of credit:          
Proceeds   282,432       60,000  
Repayments         (60,000 )
Mortgage notes payable:          
Repayments   (3,750 )     (1,250 )
Payments of financing costs   (110 )     (96 )
Issuance of common stock, net of offering costs         275,720  
Issuance of preferred stock, net of offering costs         194,502  
Redemption of preferred stock         (251,250 )
Equity compensation (payments) proceeds   (4,041 )     8,285  
Dividends and distributions:          
Common shares   (76,857 )     (66,048 )
Preferred shares   (6,666 )     (16,288 )
Redeemable noncontrolling interests - operating partnership   (12,587 )     (14,078 )
Net cash provided by financing activities   178,421       129,497  
Net (decrease) increase in cash and cash equivalents   (7,499 )     245,806  
Cash and cash equivalents, beginning of period   38,624       31,230  
Cash and cash equivalents, ending of period   $ 31,125       $ 277,036  
Supplemental information:          
Cash paid for interest, net of amounts capitalized   $ 23,331       $ 23,101  
Deferred financing costs capitalized for real estate under development   $ 635       $ 364  
Construction costs payable capitalized for real estate under development   $ 74,795       $ 26,914  
Redemption of operating partnership units   $ 77,894       $ 49,468  
Adjustments to redeemable noncontrolling interests - operating partnership   $ 202,734       $ 227,425  

                                                       
DUPONT FABROS TECHNOLOGY, INC. Operating Properties As of July 1, 2017
                                                       
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 %     100 %
ACC6     Ashburn, VA     2011-2013     262,000       130,000       100 %     100 %     26.0       100 %     100 %
ACC7     Ashburn, VA     2014-2016     446,000       238,000       100 %     100 %     41.6       100 %     100 %
CH1     Elk Grove Village, IL     2008-2012     485,000       231,000       100 %     100 %     36.4       100 %     100 %
CH2     Elk Grove Village, IL     2015-2016     328,000       158,000       100 %     100 %     26.8       100 %     100 %
SC1 Phases I-II     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 %
Subtotal - stabilized           3,308,000       1,648,000       99 %     99 %     287.1       99 %     99 %
Completed, not Stabilized                                                
ACC9 Phase I     Ashburn, VA     2017     163,000       90,000       70 %     70 %     14.4       70 %     70 %
Subtotal - not stabilized           163,000       90,000       70 %     70 %     14.4       70 %     70 %
Total Operating Properties           3,471,000       1,738,000       98 %     98 %     301.5       98 %     98 %

(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 July 1, 2017 represent $399 million of base rent on a GAAP basis and $403 million of base rent on a cash basis over the next twelve months.  Both amounts include $19 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 GAAP.
(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 (One MW is equal to 1,000 kW).

                                     
DUPONT FABROS TECHNOLOGY, INC. Lease Expirations As of July 1, 2017
                                     
The following table sets forth a summary schedule of lease expirations at our operating properties for each of the ten calendar years beginning with 2017.  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)
2017 (4)     3       19       1.1 %     3,846       1.3 %     1.5 %
2018     18       159       9.4 %     29,981       10.1 %     10.9 %
2019     26       330       19.4 %     57,404       19.4 %     20.9 %
2020     15       182       10.7 %     31,754       10.7 %     11.3 %
2021     17       293       17.2 %     51,514       17.4 %     17.2 %
2022     11       158       9.3 %     27,389       9.3 %     9.4 %
2023     10       110       6.5 %     16,772       5.7 %     5.4 %
2024     9       138       8.1 %     23,479       7.9 %     7.3 %
2025     4       47       2.8 %     7,750       2.6 %     2.9 %
2026     8       100       5.9 %     17,334       5.9 %     5.8 %
After 2026     8       164       9.6 %     28,244       9.7 %     7.4 %
Total     129       1,700       100 %     295,467       100 %     100 %

(1)   Represents 33 customers with 129 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 July 1, 2017.
(4)   A customer at ACC4 whose lease expires on July 31, 2017 has informed us that it does not intend to renew this lease.  This lease is for 1.14 MW and 5,400 CRSF.  Additionally, a customer at ACC6, whose lease expires on August 31, 2017, has informed us that it does not intend to renew this lease.  This lease is for 0.54 MW and 2,523 CRSF.  These leases total 0.9% of Annualized Base Rent.  We are marketing these computer rooms for re-lease.

                   
DUPONT FABROS TECHNOLOGY, INC. Leasing Statistics - New Leases
                   
Period     Number of Leases     Total CRSF Leased (1)     Total MW Leased (1)
                   
Q2 2017     3     161,822     28.80
Q1 2017     3     38,943     5.62
Q4 2016     1     18,000     2.88
Q3 2016     2     16,319     2.42
Trailing Twelve Months     9     235,084     39.72
                   
Q2 2016     4     72,657     12.52

                               
Leasing Statistics - Renewals/Extensions
                               
Period     Number ofRenewals     Total CRSFRenewed (1)     Total MWRenewed (1)     GAAP Rentchange (2)     Cash RentChange (2)
                               
Q2 2017                 %     %
Q1 2017                 %     %
Q4 2016     1     13,696     1.30     5.8 %     4.0 %
Q3 2016     2     16,400     3.41     1.2 %     3.0 %
Trailing Twelve Months     3     30,096     4.71            
                               
Q2 2016     4     21,526     2.72     3.5 %     2.9 %

(1)   CRSF is that portion of gross building area where customers locate their computer servers.  One MW is equal to 1,000 kW.
(2)   GAAP rent change compares the change in annualized base rent before and after the renewal.  Cash rent change compares cash base rent at renewal execution to cash base rent at the start of the renewal period.

                   
Booked Not Billed ($ in thousands)
                   
The following table outlines the incremental and annualized revenue excluding direct electric from leases that have been executed but have not been billed as of June 30, 2017.
                   
      2017     2018     Total
                   
Incremental Revenue     $ 15,155       $ 19,447        
Annualized Revenue     $ 38,316       $ 20,206       $ 58,522  

                           
DUPONT FABROS TECHNOLOGY, INC. Top 15 Customers As of July 1, 2017
                           
The following table presents our top 15 customers based on annualized monthly contractual base rent at our operating properties as of July 1, 2017:
                           
  Customer     NumberofBuildings     NumberofMarkets     AverageRemainingTerm     % of Annualized Base Rent (1)
1 Microsoft     10       3       6.0       25.4 %
2 Facebook     4       1       3.6       20.9 %
3 Fortune 25 Investment Grade-Rated Company     4       3       4.5       12.6 %
4 Rackspace     3       2       8.1       8.7 %
5 Fortune 500 leading Software as a Service (SaaS) Provider, Not Rated     4       2       6.7       7.9 %
6 Yahoo! (2)     1       1       1.2       4.0 %
7 Server Central     1       1       4.1       2.4 %
8 Fortune 50 Investment Grade-Rated Company     2       1       3.4       2.0 %
9 Dropbox     1       1       1.5       1.5 %
10 IAC     1       1       1.8       1.5 %
11 Symantec     2       1       2.0       1.3 %
12 GoDaddy     1       1       9.3       1.1 %
13 UBS     1       1       8.0       0.9 %
14 Anexio     3       1       6.5       0.9 %
15 Sanofi Aventis     2       1       4.0       0.8 %
Total                 5.2       91.9 %

(1)   Annualized base rent represents monthly contractual base rent for commenced leases (defined as cash base rent before abatements) multiplied by 12 for commenced leases as of July 1, 2017.
(2)   Comprised of a lease at ACC4 that has been fully subleased to another DFT customer.

       
DUPONT FABROS TECHNOLOGY, INC. Same Store Analysis ($ in thousands)
       
Same Store Properties Three Months Ended   Six Months Ended
  30-Jun-17   30-Jun-16   % Change   31-Mar-17   % Change   30-Jun-17   30-Jun-16   % Change
Revenue:                              
Base rent $ 91,799     $ 81,450     12.7 %   $ 91,268     0.6 %   $ 183,067     $ 161,019     13.7 %
Recoveries from tenants 45,960     40,443     13.6 %   45,295     1.5 %   91,255     77,114     18.3 %
Other revenues 631     470     34.3 %   632     (0.2 )%   1,263     907     39.3 %
Total revenues 138,390     122,363     13.1 %   137,195     0.9 %   275,585     239,040     15.3 %
                               
Expenses:                              
Property operating costs 40,985     36,369     12.7 %   40,191     2.0 %   81,176     69,994     16.0 %
Real estate taxes and insurance 4,917     4,963     (0.9 )%   4,985     (1.4 )%   9,902     9,188     7.8 %
Other expenses 64     (41 )   N/M     58     10.3 %   122     73     67.1 %
Total expenses 45,966     41,291     11.3 %   45,234     1.6 %   91,200     79,255     15.1 %
                               
Net operating income (1) 92,424     81,072     14.0 %   91,961     0.5 %   184,385     159,785     15.4 %
                               
Straight-line revenues, net of reserve 1,383     592     N/M     1,718     (19.5 )%   3,101     (1,372 )   N/M  
Amortization and write-off of lease contracts above and below market value (95 )   (106 )   (10.4 )%   (271 )   (64.9 )%   (366 )   (222 )   64.9 %
                               
Cash net operating income (1) $ 93,712     $ 81,558     14.9 %   $ 93,408     0.3 %   $ 187,120     $ 158,191     18.3 %
                               
Note: Same Store Properties represent those properties placed into service on or before January 1, 2016 and excludes ACC9. NJ1 is excluded as it was sold in June 2016.
               
Same Store, Same Capital Properties Three Months Ended   Six Months Ended
  30-Jun-17   30-Jun-16   % Change   31-Mar-17   % Change   30-Jun-17   30-Jun-16   % Change
Revenue:                              
Base rent $ 70,446     $ 69,913     0.8 %   $ 70,875     (0.6 )%   $ 141,321     $ 140,570     0.5 %
Recoveries from tenants 38,508     36,991     4.1 %   38,557     (0.1 )%   77,065     71,602     7.6 %
Other revenues 459     399     15.0 %   471     (2.5 )%   930     791     17.6 %
Total revenues 109,413     107,303     2.0 %   109,903     (0.4 )%   219,316     212,963     3.0 %
                               
Expenses:                              
Property operating costs 34,402     32,673     5.3 %   34,099     0.9 %   68,501     63,948     7.1 %
Real estate taxes and insurance 4,021     4,418     (9.0 )%   4,127     (2.6 )%   8,148     8,307     (1.9 )%
Other expenses 24     (52 )   N/M     20     20.0 %   44     55     (20.0 )%
Total expenses 38,447     37,039     3.8 %   38,246     0.5 %   76,693     72,310     6.1 %
                               
Net operating income (1) 70,966     70,264     1.0 %   71,657     (1.0 )%   142,623     140,653     1.4 %
                               
Straight-line revenues, net of reserve 4,146     3,076     34.8 %   4,015     3.3 %   8,161     3,946     N/M  
Amortization and write-off of lease contracts above and below market value (95 )   (106 )   (10.4 )%   (271 )   (64.9 )%   (366 )   (222 )   64.9 %
                               
Cash net operating income (1) $ 75,017     $ 73,234     2.4 %   $ 75,401     (0.5 )%   $ 150,418     $ 144,377     4.2 %
                               
Note: Same Store, Same Capital properties represent those properties placed into service on or before January 1, 2016 and have less than 10% of additional critical load developed after January 1, 2016. Excludes ACC9, ACC7 and CH2. NJ1 is also excluded as it was sold in June 2016.
 
(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   Six Months Ended
  30-Jun-17   30-Jun-16   % Change   31-Mar-17   % Change   30-Jun-17   30-Jun-16   % Change
Operating income $ 50,550     $ 49,975     1.2 %   $ 56,559     (10.6 )%   $ 107,109     $ 99,086     8.1 %
                               
Add-back: non-same store operating loss 13,684     5,318     N/M     7,239     N/M     20,923     9,999     N/M  
                               
Same Store:                              
Operating income 64,234     55,293     16.2 %   63,798     0.7 %   128,032     109,085     17.4 %
                               
Depreciation and amortization 28,190     25,779     9.4 %   28,163     0.1 %   56,353     50,700     11.1 %
                               
Net operating income 92,424     81,072     14.0 %   91,961     0.5 %   184,385     159,785     15.4 %
                               
Straight-line revenues, net of reserve 1,383     592     N/M     1,718     (19.5 )%   3,101     (1,372 )   N/M  
Amortization and write-off of lease contracts above and below market value (95 )   (106 )   (10.4 )%   (271 )   (64.9 )%   (366 )   (222 )   64.9 %
                               
Cash net operating income $ 93,712     $ 81,558     14.9 %   $ 93,408     0.3 %   $ 187,120     $ 158,191     18.3 %
                               
                               
Reconciliation of Operating Income to Same Store, Same Capital Net Operating Income and Cash Net Operating Income
       
  Three Months Ended   Six Months Ended
  30-Jun-17   30-Jun-16   % Change   31-Mar-17   % Change   30-Jun-17   30-Jun-16   % Change
Operating income $ 50,550     $ 49,975     1.2 %   $ 56,559     (10.6 )%   $ 107,109     $ 99,086     8.1 %
                               
Less: non-same store, same capital operating income (2,307 )   (2,455 )   (6.0 )%   (7,629 )   (69.8 )%   (9,936 )   (3,855 )   N/M  
                               
Same Store, Same Capital:                              
Operating income 48,243     47,520     1.5 %   48,930     (1.4 )%   97,173     95,231     2.0 %
                               
Depreciation and amortization 22,723     22,744     (0.1 )%   22,727     %   45,450     45,422     0.1 %
                               
Net operating income 70,966     70,264     1.0 %   71,657     (1.0 )%   142,623     140,653     1.4 %
                               
Straight-line revenues, net of reserve 4,146     3,076     34.8 %   4,015     3.3 %   8,161     3,946     N/M  
Amortization and write-off of lease contracts above and below market value (95 )   (106 )   (10.4 )%   (271 )   (64.9 )%   (366 )   (222 )   64.9 %
                               
Cash net operating income $ 75,017     $ 73,234     2.4 %   $ 75,401     (0.5 )%   $ 150,418     $ 144,377     4.2 %

(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 June 30, 2017 ($ 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                                          
ACC9 Phase II     Ashburn, VA     163,000       90,000       14.4       $126,000 - $130,000     $ 114,699       50 %     50 %
ACC10 Phase I     Ashburn, VA     161,000       91,000       15.0       126,000 - 132,000     20,650       %     %
CH3 Phase I     Elk Grove Village, IL     153,000       71,000       14.4       138,000 - 142,000     61,203       100 %     100 %
CH3 Phase II     Elk Grove Village, IL     152,000       89,000       12.8       132,000 - 138,000     59,970       %     %
SC1 Phase III     Santa Clara, CA     111,000       60,000       16.0       166,000 - 168,000     148,983       100 %     100 %
TOR1 Phase IA     Vaughan, ON     104,000       35,000       6.0       63,000 - 69,000     45,627       %     %
            844,000       436,000       78.6       751,000 - 779,000     451,132              
Future Development Projects/Phases                                          
ACC10 Phase II     Ashburn, VA     128,000       72,000       12.0       49,000 - 53,000     10,302              
TOR1 Phase IB/C     Vaughan, ON     210,000       78,000       14.5       93,000 - 99,000      27,319              
TOR1 Phase II     Vaughan, ON     397,000       113,000       19.5       34,000 - 42,000     25,393              
            735,000       263,000       46.0       176,000 - 194,000     63,014              
Land Held for Development (6)                                          
ACC8     Ashburn, VA     100,000       50,000       10.4             4,252              
ACC11     Ashburn, VA     150,000       80,000       16.0             4,892              
OR1     Hillsboro, OR     777,000       347,000       48.0             8,323              
OR2     Hillsboro, OR     798,000       347,000       48.0             7,385              
PHX1     Mesa, AZ     968,000       408,000       60.0             6,130              
PHX2     Mesa, AZ     968,000       408,000       60.0             6,130              
            3,761,000       1,640,000       242.4             37,112              
Total           5,340,000       2,339,000       367.0             $ 551,258              

(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 June 30, 2017.  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)   Amounts listed for gross building area, CRSF and critical load are current estimates.

     
DUPONT FABROS TECHNOLOGY, INC. Debt Summary as of June 30, 2017 ($ in thousands)
     
    June 30, 2017
    Amounts (1)   % of Total   Rates   Maturities (years)
Secured   $ 107,500     7 %   2.8 %   0.7  
Unsecured   1,435,997     93 %   4.5 %   4.3  
Total   $ 1,543,497     100 %   4.4 %   4.1  
                 
Fixed Rate Debt:                
Unsecured Notes due 2021   $ 600,000     39 %   5.9 %   4.2  
Unsecured Notes due 2023 (2)   250,000     16 %   5.6 %   6.0  
Fixed Rate Debt   850,000     55 %   5.8 %   4.7  
Floating Rate Debt:                
Unsecured Credit Facility   335,997     22 %   2.7 %   3.1  
Unsecured Term Loan   250,000     16 %   2.7 %   4.6  
ACC3 Term Loan   107,500     7 %   2.8 %   0.7  
Floating Rate Debt   693,497     45 %   2.7 %   3.2  
Total   $ 1,543,497     100 %   4.4 %   4.1  

Note:    We capitalized interest and deferred financing cost amortization of $5.2 million and $9.5 million during the three and six months ended June 30, 2017, respectively.
(1)   Principal amounts exclude deferred financing costs.
(2)   Principal amount excludes original issue discount of $1.6 million as of June 30, 2017.

                                 
Debt Principal Repayments as of June 30, 2017 ($ in thousands)
                                 
Year     Fixed Rate (1)       Floating Rate (1)       Total (1)   % of Total     Rates
2017             5,000   (4)     5,000       0.3 %     2.8 %
2018             102,500   (4)     102,500       6.6 %     2.8 %
2019                           %     %
2020             335,997   (5)     335,997       21.8 %     2.7 %
2021     600,000   (2)             600,000       38.9 %     5.9 %
2022             250,000   (6)     250,000       16.2 %     2.7 %
2023     250,000   (3)             250,000       16.2 %     5.6 %
Total     $ 850,000         $ 693,497         $ 1,543,497       100.0 %     4.4 %

(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 $1.6 million as of June 30, 2017.
(4)   The ACC3 Term Loan matures on March 27, 2018 with no extension option.  Quarterly principal payments of $1.25 million began on April 1, 2016, increased to $2.5 million on April 1, 2017 and continue through maturity.
(5)   The Unsecured Credit Facility matures on July 25, 2020 with a one-year extension option.
(6)   The Unsecured Term Loan matures on January 21, 2022 with no extension option.

           
DUPONT FABROS TECHNOLOGY, INC. Selected Unsecured Debt Metrics (1)
           
    6/30/17     12/31/16
Interest Coverage Ratio (not less than 2.0)   4.9       5.4  
           
Total Debt to Gross Asset Value (not to exceed 60%)   38.2 %     34.0 %
           
Secured Debt to Total Assets (not to exceed 40%)   2.7 %     3.0 %
           
Total Unsecured Assets to Unsecured Debt (not less than 150%)   188 %     231 %

(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 June 30, 2017 (in thousands except per share data)
                                 
Line of Credit                     $ 335,997        
Mortgage Notes Payable                     107,500        
Unsecured Term Loan                     250,000        
Unsecured Notes                     850,000        
Total Debt                     1,543,497       21.4 %
Common Shares   87 %     77,846                    
Operating Partnership ("OP") Units   13 %     11,682                    
Total Shares and Units   100 %     89,528                    
Common Share Price at June 30, 2017         $ 61.16                    
Common Share and OP Unit Capitalization               $ 5,475,532              
Preferred Stock ($25 per share liquidation preference)               201,250              
Total Equity                     5,676,782       78.6 %
Total Market Capitalization                     $ 7,220,279       100.0 %

                       
DUPONT FABROS TECHNOLOGY, INC. Common Share and OP Unit Weighted Average Amounts Outstanding
                       
    Q2 2017     Q2 2016     YTD 2Q2017     YTD 2Q2016
Weighted Average Amounts Outstanding for EPS Purposes:                      
                       
Common Shares - basic   77,486,297       74,370,577       77,080,615       70,661,406  
Effect of dilutive securities   1,001,676       861,057       991,329       857,089  
Common Shares - diluted   78,487,973       75,231,634       78,071,944       71,518,495  
                       
Weighted Average Amounts Outstanding for FFO, Normalized FFO and AFFO Purposes:                      
                       
Common Shares - basic   77,486,297       74,370,577       77,080,615       70,661,406  
OP Units - basic   11,682,368       14,607,330       12,051,751       14,822,570  
Total Common Shares and OP Units   89,168,665       88,977,907       89,132,366       85,483,976  
                       
Effect of dilutive securities   1,135,326       1,008,006       1,175,588       1,036,917  
Common Shares and Units - diluted   90,303,991       89,985,913       90,307,954       86,520,893  
                       
Period Ending Amounts Outstanding:                      
Common Shares   77,845,588                    
OP Units   11,682,368                    
Total Common Shares and Units   89,527,956                    

Note: This press release supplement contains certain non-GAAP financial measures that we believe are helpful in understanding our business, as further discussed within this press release supplement.  These financial measures, which include NAREIT Funds From Operations, Normalized Funds From Operations, Adjusted Funds From Operations, Net Operating Income, Cash Net Operating Income, NAREIT Funds From Operations per share and Normalized Funds From Operations per share, should not be considered as an alternative to net income, operating income, earnings per share or any other GAAP measurement of performance or as an alternative to cash flows from operating, investing or financing activities.  Furthermore, these non-GAAP financial measures are not intended to be a measure of cash flow or liquidity.  Information included in this supplemental package is unaudited.
Investor Relations Contacts:Jeffrey H. FosterChief Financial Officerjfoster@dft.com(202) 478-2333Steven RubisVice President, Investor Relationssrubis@dft.com(202) 478-2330

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