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Debt of the Operating Partnership | 12 Months Ended
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Dec. 31, 2022
Debt of the Operating Partnership |
Debt of the Operating Partnership | 11. Debt of the Operating Partnership All debt is currently held by the OP or its consolidated subsidiaries, and the Parent is the guarantor or co-guarantor of such debt. A summary of outstanding indebtedness is as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | December 31, 2022 |  | December 31, 2021
​ | ​ | Weighted- | ​ | ​ | ​ | ​ | Weighted- | ​ | ​ | ​
​ | ​ | average | ​ | Amount | ​ | average | ​ | Amount
​ | ​ | interest rate | ​ | Outstanding | ​ | interest rate | ​ | Outstanding
Global revolving credit facilities | ​ | 3.04 | % | ​ | $ | 2,167,889 | ​ | 0.96 | % | ​ | $ | 415,116
Unsecured term loans | ​ | 2.49 | % | ​ | ​ | 802,875 | ​ | — | % | ​ | ​ | —
Unsecured senior notes | ​ | 2.44 | % | ​ | ​ | 13,220,961 | ​ | 2.26 | % | ​ | ​ | 13,000,042
Secured and other debt | ​ | 7.12 | % | ​ |  | 532,130 | ​ | 3.47 | % | ​ |  | 147,082
Total | ​ | 2.68 | % | ​ | $ | 16,723,855 |  | 2.23 | % | ​ | $ | 13,562,240
​ The weighted-average interest rates shown represent interest rates at the end of the periods for the debt outstanding and include the impact of designated interest rate swaps, which effectively fix the interest rates on certain variable rate debt. We primarily borrow in the functional currencies of the countries where we invest. Included in the outstanding balances were borrowings denominated in the following currencies (in thousands, U.S. dollars): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2022 | ​ | December 31, 2021
​ | ​ | Amount | ​ | ​ | ​ | ​ | Amount | ​ | ​ | ​
Denomination of Draw |  | Outstanding |  | % of Total | ​ | Outstanding |  | % of Total
U.S. dollar ($) | ​ | $ | 3,855,903 |  | 23.1 | % | ​ | $ | 3,141,951 |  | 23.2 | %
British pound sterling (£) |  | ​ | 1,929,051 |  | 11.5 | % | ​ | ​ | 2,117,758 | ​ | 15.6 | %
Euro (€) | ​ | ​ | 9,325,126 | ​ | 55.8 | % | ​ | ​ | 7,532,057 | ​ | 55.5 | %
Other | ​ | ​ | 1,613,775 | ​ | 9.6 | % | ​ | ​ | 770,474 | ​ | 5.7 | %
Total | ​ | $ | 16,723,855 |  | ​ | ​ | ​ | $ | 13,562,240 |  | ​ | ​
​ The table below summarizes our debt maturities and principal payments as of December 31, 2022 (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Global Revolving | ​ | Unsecured | ​ | Unsecured | ​ | Secured and | ​ | ​ | ​
​ |  | Credit Facilities (1) |  | Term Loans |  | Senior Notes |  | Other Debt |  | Total Debt
2023 | ​ | $ | — | ​ | $ | — | ​ | $ | 108,121 | ​ | $ | 9,335 | ​ | $ | 117,456
2024 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 944,375 | ​ | ​ | 9,381 | ​ | ​ | 953,756
2025 | ​ | ​ | — | ​ | ​ | 401,438 | ​ | ​ | 1,179,145 | ​ | ​ | — | ​ | ​ | 1,580,583
2026 |  | ​ | 2,167,889 |  | ​ | — |  | ​ | 1,448,119 |  | ​ | 58,575 |  | ​ | 3,674,583
2027 |  | ​ | — |  | ​ | 401,437 |  | ​ | 1,162,181 |  | ​ | 135,000 |  | ​ | 1,698,618
Thereafter |  | ​ | — |  | ​ | — |  | ​ | 8,379,020 |  | ​ | 319,839 |  | ​ | 8,698,859
Subtotal | ​ | $ | 2,167,889 | ​ | $ | 802,875 | ​ | $ | 13,220,961 | ​ | $ | 532,130 | ​ | $ | 16,723,855
Unamortized net discounts | ​ |  | — | ​ |  | — | ​ |  | (37,280) | ​ |  | — | ​ |  | (37,280)
Unamortized deferred financing costs | ​ | ​ | (17,438) | ​ | ​ | (5,426) | ​ | ​ | (63,648) | ​ | ​ | (3,260) | ​ | ​ | (89,772)
Total | ​ | $ | 2,150,451 | ​ | $ | 797,449 | ​ | $ | 13,120,033 | ​ | $ | 528,870 | ​ | $ | 16,596,803
(1) | Includes amounts outstanding for the global revolving credit facility and the Yen revolving credit facility (together, we refer to as the “global revolving credit facilities”) – but are discussed separately in these footnotes given slightly different fees/terms.
Global Revolving Credit Facility We have a global revolving senior credit facility (“global revolving credit facility”) under which we may draw up to $3.75 billion on a revolving basis (subject to currency fluctuations). The global revolving credit facility can be drawn in Australian dollars, British pounds sterling, Canadian dollars, Euros, Hong Kong dollars, Japanese yen, Singapore dollars, Indonesian rupiah, Swiss francs, Korean won and U.S. dollars (with the ability to add other currencies in the future). On April 5, 2022, we entered into an amendment (the “Amendment”) to the Second Amended and Restated Global Senior Credit Agreement (the “Credit Agreement”). The Amendment provided for, among other things: (1) an increase in the size of the global revolving credit facility from $3.0 billion to $3.75 billion and (2) the transition from U.S. dollar London Interbank Offered Rate (LIBOR) to Term Secured Overnight Financing Rate (SOFR) for floating rate borrowings denominated in U.S. dollars for all purposes under the Credit Agreement. We have the ability to increase the size of the global revolving credit facility by up to $750 million, subject to the receipt of lender commitments and other conditions precedent. Other key terms of the global revolving credit facility are as follows:
| ● | Maturity date: January 24, 2026, with two six-month extension options available. The bank group is obligated to grant the extension options provided we give proper notice, we make certain representations and warranties and no default exists under the global revolving credit facilities.
| ● | Interest rate: the applicable index plus a margin which is based on the credit ratings of our long-term debt and is currently 85 basis points.
| ● | Annual facility fee: based on the total commitment amount of the facility and the credit ratings of our long-term debt is currently 20 basis points and is payable quarterly.
| ● | Sustainability-linked pricing component: pricing can increase by up to 5 basis points or decrease by up to 5 basis points depending on whether or not the OP or its subsidiaries meet certain sustainability performance targets.
Yen Revolving Credit Facility In addition to the global revolving credit facility, we have a revolving credit facility that provides for borrowings in Japanese Yen of up to ¥33.3 billion (approximately $253.9 million based on the exchange rate on December 31, 2022), hereafter referred to as the “Yen revolving credit facility”). We have the ability from time to time to increase the size of the Yen revolving credit facility to up to ¥93.3 billion (approximately $711.5 million based on the exchange rate on December 31, 2022), subject to receipt of lender commitments and other conditions precedent. Other key terms of the Yen revolving credit facility are as follows:
| ● | Maturity date: January 24, 2026, with two six-month extension options available. The bank group is obligated to grant the extension options provided we give proper notice, we make certain representations and warranties and no default exists under the global revolving credit facilities.
| ● | Interest rate: the applicable index plus a margin which is based on the credit ratings of our long-term debt and is currently 50 basis points.
| ● | Quarterly unused commitment fee: currently is 10 basis points, calculated using the average daily unused revolving credit commitment and is based on the credit ratings of our long-term debt
| ● | Sustainability-linked pricing component: pricing can increase by up to 5 basis points or decrease by up to 5 basis points depending on whether or not the OP or its subsidiaries meet certain sustainability performance targets.
Restrictive Covenants in Global Revolving Credit Facility and Yen Revolving Credit Facility The global revolving credit facility and the Yen revolving credit facility both contain various restrictive covenants, including limitations on our ability to incur additional indebtedness, make certain investments, or merge with another company. In addition, we are required to maintain financial coverage ratios, including with ratios respect to unencumbered assets. After the occurrence of and during the continuance of any event of default, these credit facilities restrict the Parent’s ability to make distributions to stockholders or redeem or otherwise repurchase shares of its capital stock, except in limited circumstances (such as those necessary to enable Digital Realty Trust, Inc. to maintain its qualification as a REIT and to minimize the payment of income or excise tax). As of December 31, 2022, we were in compliance with all of such covenants for both of these revolving credit facilities. Unsecured Senior Notes The following table provides details of outstanding unsecured senior notes (balances in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Aggregate Principal Amount at Issuance | ​ | ​ | ​ | Balance as of
​ | ​ | Borrowing Currency | ​ | USD | ​ | Maturity Date | ​ | December 31, 2022 | ​ | December 31, 2021
Floating rate notes due 2022 | ​ | € | 300,000 | ​ | $ | 349,800 | ​ | Sep 23, 2022 | ​ | $ | — | ​ | $ | 341,100
0.125% notes due 2022 | ​ | € | 300,000 | ​ | ​ | 332,760 | ​ | Oct 15, 2022 | ​ | ​ | — | ​ | ​ | 341,100
0.600% notes due 2023 | ​ | CHF | 100,000 | ​ | ​ | 108,310 | ​ | Oct 02, 2023 | ​ | ​ | 108,121 | ​ | ​ | —
2.625% notes due 2024 | ​ | € | 600,000 | ​ | ​ | 677,040 | ​ | Apr 15, 2024 | ​ | ​ | 642,300 | ​ | ​ | 682,200
2.750% notes due 2024 | ​ | £ | 250,000 | ​ | ​ | 324,925 | ​ | Jul 19, 2024 | ​ | ​ | 302,075 | ​ | ​ | 338,300
4.250% notes due 2025 | ​ | £ | 400,000 | ​ | ​ | 634,480 | ​ | Jan 17, 2025 | ​ | ​ | 483,320 | ​ | ​ | 541,280
0.625% notes due 2025 | ​ | € | 650,000 | ​ | ​ | 720,980 | ​ | Jul 15, 2025 | ​ | ​ | 695,825 | ​ | ​ | 739,050
4.750% notes due 2025 | ​ | $ | 450,000 | ​ | ​ | 450,000 | ​ | Oct 01, 2025 | ​ | ​ | — | ​ | ​ | 450,000
2.500% notes due 2026 | ​ | € | 1,075,000 | ​ | ​ | 1,224,640 | ​ | Jan 16, 2026 | ​ | ​ | 1,150,788 | ​ | ​ | 1,222,275
0.200% notes due 2026 | ​ | CHF | 275,000 | ​ | ​ | 298,404 | ​ | Dec 15, 2026 | ​ | ​ | 297,331 | ​ | ​ | 301,419
1.700% notes due 2027 | ​ | CHF | 150,000 | ​ | ​ | 162,465 | ​ | Mar 30, 2027 | ​ | ​ | 162,181 | ​ | ​ | —
3.700% notes due 2027 (1) | ​ | $ | 1,000,000 | ​ | ​ | 1,000,000 | ​ | Aug 15, 2027 | ​ | ​ | 1,000,000 | ​ | ​ | 1,000,000
5.550% notes due 2028 (1) | ​ | $ | 900,000 | ​ | ​ | 900,000 | ​ | Jan 15, 2028 | ​ | ​ | 900,000 | ​ | ​ | —
1.125% notes due 2028 | ​ | € | 500,000 | ​ | ​ | 548,550 | ​ | Apr 09, 2028 | ​ | ​ | 535,250 | ​ | ​ | 568,500
4.450% notes due 2028 | ​ | $ | 650,000 | ​ | ​ | 650,000 | ​ | Jul 15, 2028 | ​ | ​ | 650,000 | ​ | ​ | 650,000
0.550% notes due 2029 | ​ | CHF | 270,000 | ​ | ​ | 292,478 | ​ | Apr 16, 2029 | ​ | ​ | 291,925 | ​ | ​ | 295,938
3.600% notes due 2029 | ​ | $ | 900,000 | ​ | ​ | 900,000 | ​ | Jul 01, 2029 | ​ | ​ | 900,000 | ​ | ​ | 900,000
3.300% notes due 2029 | ​ | £ | 350,000 | ​ | ​ | 454,895 | ​ | Jul 19, 2029 | ​ | ​ | 422,905 | ​ | ​ | 473,620
1.500% notes due 2030 | ​ | € | 750,000 | ​ | ​ | 831,900 | ​ | Mar 15, 2030 | ​ | ​ | 802,875 | ​ | ​ | 852,750
3.750% notes due 2030 | ​ | £ | 550,000 | ​ | ​ | 719,825 | ​ | Oct 17, 2030 | ​ | ​ | 664,565 | ​ | ​ | 744,260
1.250% notes due 2031 | ​ | € | 500,000 | ​ | ​ | 560,950 | ​ | Feb 01, 2031 | ​ | ​ | 535,250 | ​ | ​ | 568,500
0.625% notes due 2031 | ​ | € | 1,000,000 | ​ | ​ | 1,220,700 | ​ | Jul 15, 2031 | ​ | ​ | 1,070,500 | ​ | ​ | 1,137,000
1.000% notes due 2032 | ​ | € | 750,000 | ​ | ​ | 874,500 | ​ | Jan 15, 2032 | ​ | ​ | 802,875 | ​ | ​ | 852,750
1.375% notes due 2032 | ​ | € | 750,000 | ​ | ​ | 849,375 | ​ | Jul 18, 2032 | ​ | ​ | 802,875 | ​ | ​ | —
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 13,220,961 | ​ | $ | 13,000,042
Unamortized discounts, net of premiums | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (37,280) | ​ | ​ | (33,612)
Deferred financing costs, net | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (63,648) | ​ | ​ | (63,060)
Total unsecured senior notes, net of discount and deferred financing costs | ​ | $ | 13,120,033 | ​ | $ | 12,903,370
(1) | Subject to cross-currency swaps.
​ Restrictive Covenants in Unsecured Senior Notes The indentures governing our senior notes contain certain covenants, including (1) a leverage ratio not to exceed 60%, (2) a secured debt leverage ratio not to exceed 40% and (3) an interest coverage ratio of greater than 1.50. The covenants also require us to maintain total unencumbered assets of not less than 150% of the aggregate principal amount of unsecured debt. At December 31, 2022, we were in compliance with each of these financial covenants. Early Extinguishment of Unsecured Senior Notes We recognized the following losses on early extinguishment of unsecured notes:
| ● | During the year ended December 31, 2022: $51.1 million primarily due to redemption of the 4.750% Notes due 2025 in February 2022.
| ● | During the year ended December 31, 2021: $18.3 million primarily due to redemption of the 2.750% Notes due 2023 in February 2021.
| ● | During the year ended December 31, 2020: $103.2 million primarily due to redemption of:
| o | 3.950% Notes due 2022 and 3.625% Notes due 2022 in August 2020; and
| o | 4.750% Notes due 2023 in October 2020
​ Euro Term Loan Agreement On August 11, 2022, Digital Dutch Finco B.V., a wholly owned subsidiary of the Operating Partnership, entered into a term loan agreement (the “Euro Term Loan Agreement”) which governs (i) a €375.0 million three-year senior unsecured term loan facility (the “2025 Term Facility”), the entire amount of which was funded on the closing date, and (ii) a €375.0 million five-year senior unsecured term loan facility (the “2025-27 Term Facility” and, together with the 2025 Term Facility, the “Euro Term Facilities”), comprised of €125.0 million of initial term loans, the entire amount of which was funded on the closing date, and €250.0 million of delayed draw term loan commitments that were not funded on the closing date, and were funded on September 9, 2022. The Euro Term Facilities provide for borrowings in Euros. The 2025 Term Facility matures on August 11, 2025. The 2025-27 Term Facility matures on August 11, 2025, subject to two maturity extension options of one year each. The interest rate for borrowings under the Euro Term Facilities is based on EURIBO, plus a margin based on the corporate credit rating of our long-term senior unsecured debt of between 0.80% and 1.60% per annum. As of the closing date, the applicable rate for borrowings is EURIBO plus 0.95% per annum. We are also required to pay certain fees to the administrative agent under the Euro Term Facilities. The Euro Term Facilities may be voluntarily prepaid in whole or in part at any time without premium or penalty. Amounts borrowed under the Euro Term Facilities and repaid or prepaid may not be reborrowed. ​ Issuance of Unsecured Senior Notes ​ Digital Intrepid Holding B.V., an indirect wholly owned holding and finance subsidiary of the Operating Partnership through which the Interxion business is held, issued and sold the following notes during 2022: ​
| ● | January 18, 2022: Issued and sold €750.0 million aggregate principal amount of 1.375% Guaranteed Notes due 2032 (the “2032 Notes”). Net proceeds from the offering were approximately €737.5 million (approximately $835.3 million based on the exchange rate on January 18, 2022) after deducting managers’ discounts and estimated offering expenses.
​
| ● | March 30, 2022: Issued and sold CHF 100 million aggregate principal amount of 0.600% Guaranteed Notes due 2023 (the “2023 Notes”) and CHF 150 million aggregate principal amount of 1.700% Guaranteed Notes due 2027 (the “2027 Notes” and, together with the “2023 Notes,” the “Swiss Franc Notes”). Net proceeds from the offering of the Swiss Franc Notes were approximately CHF 248.6 million (approximately $269.2 million based on the exchange rate on March 30, 2022) after deducting the managers’ commissions and certain offering expenses.
​ On September 27, 2022 and December 6, 2022, Digital Realty Trust, L.P. completed underwritten public offerings of $900.0 million aggregate principal amount of its 5.550% Notes due 2028 (the “2028 Notes”). Interest on the 2028 Notes is payable on January 15 and July 15 of each year, beginning on January 15, 2023, until the maturity date of January 15, 2028. Our obligations under the 2028 Notes are fully and unconditionally guaranteed by Digital Realty Trust, Inc. Net proceeds from the offering of the 2028 Notes were approximately $888.4 million, after deducting the managers’ commissions and certain offering expenses. ​ Secured and other debt ​ This amount consists of a variety of loans at fixed rates ranging from 3.29% to 11.65%. The largest component of the balance is a Teraco term loan facility in the amount of $288.8 million, with an effective interest rate of 8.52%, along with a $135.0 million mortgage loan for the Company’s Westin building in Seattle – which bears interest at 3.29%. The loan bearing interest at 11.65% is an unsecured loan with a balance of less than $8 million.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI https://asc.fasb.org/topic&trid=2208564 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (h) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (g) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1E -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (i) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 + Details
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