Q1 2019 Earnings Presentation

© 2019 QTS. All Rights Reserved.
QTS Realty Trust, Inc.
First Quarter 2019
Earnings Presentation
May 1, 2019

QTS Realty Trust, Inc. 1
Forward Looking Statements
Some of the statements contained in this presentation constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to
expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In particular,
statements pertaining to our capital resources, portfolio performance results of operations, anticipated growth in our funds from operations and anticipated market conditions
contain forward-looking statements. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,”
“intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or
indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions.
The forward-looking statements contained in this presentation reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties,
assumptions and changes in circumstances that may cause our actual results to differ significantly from those expressed in any forward-looking statement. We do not guarantee
that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future
events to differ materially from those set forth or contemplated in the forward-looking statements:
 adverse economic or real estate developments in our markets or the technology industry;
 obsolescence or reduction in marketability of our infrastructure due to changing industry demands;
 global, national and local economic conditions;
 risks related to our international operations;
 difficulties in identifying properties to acquire and completing acquisitions;
 our failure to successfully develop, redevelop and operate acquired properties or lines of business;
 significant increases in construction and development costs;
 the increasingly competitive environment in which we operate;
 defaults on, or termination or non-renewal of, leases by customers;
 decreased rental rates or increased vacancy rates;
 increased interest rates and operating costs, including increased energy costs;
 financing risks, including our failure to obtain necessary outside financing;
 dependence on third parties to provide Internet, telecommunications and network connectivity to our data centers;
 our failure to qualify and maintain our qualification as a REIT;
 environmental uncertainties and risks related to natural disasters;
 financial market fluctuations;
 changes in real estate and zoning laws, revaluations for tax purposes and increases in real property tax rates; and
 limitations inherent in our current and any future joint venture investments, such as lack of sole decision-making authority and reliance on our partners’ financial condition.
While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. Any forward-looking statement speaks only as of the date on which it
was made. We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data
or methods, future events or other changes. For a further discussion of these and other factors that could cause our future results to differ materially from any forward-looking
statements, see the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2018 (“10-K”) and in the other periodic reports we file with
the Securities and Exchange Commission.
This presentation includes measures not derived in accordance with generally accepted accounting principles (“GAAP”), such as FFO, operating FFO, adjusted Operating FFO,
EBITDAre, adjusted EBITDA, NOI, ROIC and MRR. These measures should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP,
and may also be inconsistent with similar measures presented by other companies. As used herein, “Core” refers to our business that primarily consists of our hyperscale and
hybrid colocation leases. Reconciliation of these measures to the most closely comparable GAAP measures are presented in the attached pages. We refer you to the appendix of
this presentation for reconciliations of these measures and to the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations--Non-
GAAP Financial Measures" in our 10-K for further information regarding these measures.

First Quarter 2019 Review

Q1 2019 Review
$100.4
$112.7
Q1 2018 Q1 2019
$50.2
$58.8
Q1 2018 Q1 2019
50.0%
52.2%
Q1 2018 Q1 2019
Adjusted EBITDA ($M)1,2 Adj. EBITDA Margin1,2Revenue ($M)1
Q1 2019 Leasing Summary
1.Reflects results for the Core business only in Q1 2018
2.Includes QTS’ pro rata share of unconsolidated JV’s
• Signed new/modified leases totaling $11.3M of incremental annualized rent
 Q1 ’19 net leasing consistent with Q4 ’18 leasing level
 Leasing results reflect healthy balance across QTS platform
 Booked-not-billed backlog remained strong at $55M2 of annualized rent as of Q1 ’19 vs.
near record $63M backlog as of Q4 ‘18
 Continues to de-risk financial performance in 2019

Hybrid Colocation Continues to Drive Consistent Growth
• Hybrid Colocation:
 Hybrid colocation business contributed the majority of net leasing volume in Q1
 Strength in hybrid colocation performance is a function of:
 Strengthening economic backdrop
 QTS signed 47 new logos in Q1 2019, +15% year-over-year
 New logo growth remains a key initiative for QTS sales team given ongoing
growth potential of embedded customer base
 Continue to see an increase in overall deal size within Enterprise funnel
 Increasing contribution from channel partnerships
 Nearly 50% of hybrid colocation leasing was sourced through a channel partner
in Q1 2019 vs. approximately 15% of leasing three years ago
 Differentiation enabled by software-defined data center platform
 Industry’s first software-defined orchestration platform
 Empowers customers to interact with data and QTS services by providing real-
time visibility and control of critical metrics across hybrid IT environments

Strategic Growth Acceleration Opportunities in Hyperscale
Hyperscale:
 During Q1, QTS signed a 3 MW lease in its Fort Worth mega data center with a new
hyperscale logo
 Leverages low basis asset acquired in 2016 which enables an ROIC above the typical
hyperscale return expectation in the market
 Able to support initial 3 MW deployment in existing Fort Worth facility with limited
incremental capital, further supporting QTS’ capital efficient approach
 Establishes new relationship with one of the industry’s fastest growing consumers of
hyperscale data center capacity
 Initial commitment is expected to scale substantially at the site over time
 Several larger potential opportunities remain in pipeline that QTS continues to
actively pursue with both new and existing customers across multiple markets
QTS establishes new relationship with one of the largest and fastest growing
consumers of hyperscale data center capacity

QTS Netherlands Acquisition Overview
Transaction Summary
 Acquired two data centers in the Netherlands on April 23, 2019 for $44M, including closing costs
 Facilities acquired opportunistically from TCN
 Approx. 158,000 SF of raised floor capacity and 30 gross MWs of combined power capacity built out currently
 Initially expected to contribute approx. $3M of recurring revenue and $1M of adj. EBITDA on an annualized basis
 Current built out capacity:
 45,000 SF of raised floor / 10 gross MWs
 Largely stabilized facility with approximately 20
colocation tenants
 Weighted average remaining tenant lease term
of 3.5 years
 Highly connected colocation facility with more than
10 network providers and internet exchanges
 Current built out capacity:
 113,000 SF of raised floor / 20 gross MWs
 Originally constructed to support single hyperscale
tenant and is currently fully available
 Facility supports QTS’ hyperscale growth strategy
 Adjacent to multiple hyperscale customer-owned
facilities including 500+ MW hyperscale campus
 Strategically located in close proximity to multiple
transatlantic fiber cable landings
Groningen Facility Eemshaven Facility

Netherlands Acquisition Accelerates Global Expansion
De-risked entry into new international market with acquisition of large scale
infrastructure at a low basis with significant capacity for growth
Low basis: Purchase price represents ~$2M per MW2 which is materially below any
reasonable average cost to build in the market
Mega scale: 30 MWs of aggregate built out capacity, including 20 MWs in Eemshaven
facility which is fully available and built out
Platform for int’l expansion: Represents QTS’ first mega scale expansion outside U.S.
De-risked execution strategy: Low basis new market entry leveraging local partnerships
to de-risk execution in new international market
P
P
P
P
Growth opportunity: According to CBRE, absorption in the top 4 European markets
totaled ~190 MWs in 2018, +60% Y/Y driven in part by increased hyperscale leasing1
OFFO/share accretion opportunity: As a result of low basis purchase price combined
with contracted in-place revenue, acquisition is breakeven to QTS’ 2019 OFFO/share,
assuming no incremental leasing; opportunity to drive significant future accretion
P
P
1 CBRE Data Centre Marketview – Q3 2018
2 Including approximately $15M of additional capital spend related to recommissioning of the sites

Financial Update

Balanced Approach to Capital Allocation
Focused on delivering consistent OFFO/share growth while continuing to invest
in long-term growth
Strong value creation opportunity
 Consistently able to generate ROIC of 12%+
 Premium ROIC enabled by business approach that balances higher return hybrid colocation
with select growth acceleration opportunities in hyperscale
 ROIC represents significant spread relative to QTS cost of capital, among the widest in the
real estate industry
Flexible capital plan to drive near- and long-term OFFO/sh growth
 Constantly evaluate priority of capital spend to balance the needs of customers with
OFFO/share growth
 Maintained thoughtful approach to not only the amount of capital spend, but also the source
and timing of that capital
Focused on funding capital plan in most shareholder-friendly means
 Demonstrated track record of managing both timing and structure of capital to fund the
business while minimizing near-term equity dilution
 Recent examples include:
 Two separate perpetual preferred equity raises in 2018
 Joint venture agreement signed during Q1 2019

Benefits of Joint Venture Agreement to QTS
Multiple drivers of incremental value
Outlines a programmatic framework under which Alinda will be given opportunity to contribute
equity capital for specific data center projects in support of QTS’ hyperscale growth strategy
Reduces QTS’ reliance on public markets and leverages low cost of capital from
sophisticated private investor with large capacity to fund capital development plans
Reduces QTS’ capital deployment requirements in Manassas development by approximately
$120 million while retaining 50% proportionate share of NOI generated by facility
Enhances QTS’ overall ROIC based on cap rates below the ROIC of development projects
combined with incremental fee streams (development & management fees)
P
P
P
P
Highlights strong underlying value of QTS’ strategic data center assets at 6.75% cap rate
Manassas joint venture delivers immediate enhanced value by locking in cap rate well below
the ROIC of Manassas data center development and accretion upon stabilization
P
P
Joint venture factors in asset valuation of Manassas data center with cap rate value at full
stabilization, thereby not sacrificing future value from the joint venture’s expected growth
P

Balance Sheet and Liquidity Summary
 Net debt to LQA adjusted
EBITDA of 4.9x, including
forward equity proceeds
 No significant debt
maturities until beyond
2021
 82% of debt is subject to a
fixed rate, including interest
rate swap agreements
 Raised $322M of gross
equity proceeds during Q1
’19, including $156M4 in a
forward equity structure
Market Cap
$2,831M2
Series A
Preferred Stock
$107M
Series B Convertible
Preferred Stock
$316M
Senior Notes
$400M
Unsecured Credit Facility
$816M1
Finance Leases and Other
$49M
Pro Rata Share of
Unconsolidated JV Debt
$27M
1. Includes two term loans ($700 million in aggregate) and $135 million of borrowings on revolving credit facility as of March 31, 2019, net of cash and cash equivalents
2. Market Cap calculated as follows: total Class A and Class B common stock and OP units of 62.9 million, multiplied by the March 31, 2019 stock price of $44.99 per share.
3. May not sum due to rounding
4. Reflects gross proceeds available at the Company’s election to physically settle the forward equity sale at or before March 1, 2020
$4.5B
Enterprise
Value
$2 $3 $3
$140
$381
$784
2019 2020 2021 2022 2023 2024+
HighlightsCapital Structure
Debt Maturities ($M)3

Full Year 2019 Guidance Summary
1. Consistent with GAAP accounting standards, revenue from the unconsolidated joint venture has been removed from QTS’ reported GAAP financial statements as of the closing date of the JV.
2. Consistent with NAREIT-defined standards, QTS has included its proportionate ownership of EBITDAre from the unconsolidated JV in its reported EBITDAre and adjusted EBITDA results.
3. Consistent with NAREIT-defined standards, QTS has included its proportionate ownership of Funds from Operations from the unconsolidated JV in its reported Funds from Operations, Operating Funds from Operations and
Operating Funds from Operations per diluted share results.
4. Reflects cash capital expenditures and excludes acquisitions. Includes QTS’ proportionate share of cash capital expenditures in the unconsolidated Manassas joint venture.
 2019 core rental churn guidance: 3% - 6%
 2019 capital expenditure guidance: $450 - $500M4, excluding acquisitions
 2019 operating FFO per share guidance assumes:
 QTS maintains net debt to annualized adjusted EBITDA leverage in the mid to high 5x range,
including QTS’ proportionate share of joint venture debt
 QTS’ 2019 capital plan is fully financed including proceeds from the $322M equity raise in Q1 2019
 QTS has updated its full-year 2019 guidance to reflect the April 23, 2019 closing of the acquisition of
two facilities in the Netherlands
 On an annualized basis, QTS expects the acquired Netherlands sites to contribute approximately
$3M of recurring revenue and $1M of adjusted EBITDA, assuming no incremental leasing
$ in millions except per share values
Prior 2019 Guidance
Plus: Netherlands
Acquisition Updated 2019 Guidance
Low High Low High
Revenue1
$459 $473 $2 $461 $475
Adjusted EBITDA2
$243 $253 $0.5 $243.5 $253.5
Operating FFO per Share3
$2.61 $2.71 - $2.61 $2.71

Closing Remarks

Thank You!
ir@qtsdatacenters.com

Appendix

NOI Reconciliation
$ in thousands
Net Operating Income (NOI)
Net income (loss) $ 21,148 $ 10,474 $ (4,072) $ 6,402 5,083 $ (5,335) $ (252)
Equity in net (income) loss of unconsolidated entity 274 — — — — — —
Interest income (45) (58) — (58) (1) — (1)
Interest expense 7,146 6,050 — 6,050 8,103 7 8,110
Depreciation and amortization 38,788 38,259 — 38,259 33,340 2,574 35,914
Debt restructuring costs — 605 — 605 — — —
Tax expense (benefit) of taxable REIT subsidiaries 211 38 (161) (123) (767) (1,635) (2,402)
Transaction, integration and impairment costs 1,214 269 — 269 920 — 920
General and administrative expenses 19,891 17,551 118 17,669 18,114 4,119 22,233
Gain on sale of real estate, net (13,408) — — — — — —
Restructuring — 138 4,108 4,246 — 8,530 8,530
NOI from consolidated operations $ 75,219 $ 73,326 $ (7) $ 73,319 $ 64,792 $ 8,260 $ 73,052
Pro rata share of NOI from unconsolidated entity 234 — — — — — —
Total NOI $ 75,453 $ 73,326 $ (7) $ 73,319 $ 64,792 $ 8,260 $ 73,052
TotalNon-Core
Three Months Ended
March 31, 2019 December 31, 2018 March 31, 2018
CoreTotalNon-CoreTotal Core

EBITDAre & Adjusted EBITDA Reconciliation
$ in thousands
EBITDAre and Adjusted EBITDA
Net income (loss) $ 21,148 $ 10,474 $ (4,072) $ 6,402 5,083 $ (5,335) $ (252)
Interest income (45) (58) — (58) (1) — (1)
Interest expense 7,146 6,050 — 6,050 8,103 7 8,110
Tax expense (benefit) of taxable REIT subsidiaries 211 38 (161) (123) (767) (1,635) (2,402)
Depreciation and amortization 38,788 38,259 — 38,259 33,340 2,574 35,914
(Gain) loss on disposition of depreciated property and
impairment write-downs of depreciated property (13,408) — 1,288 1,288 — 4,017 4,017
EBITDAre from unconsolidated entity 215 — — — — — —
EBITDAre $ 54,329 $ 54,763 $ (2,945) $ 51,818 $ 45,758 $ (372) $ 45,386
Equity-based compensation expense 3,300 3,531 — 3,531 3,481 — 3,481
Restructuring costs — 138 2,820 2,958 — 4,513 4,513
Adjusted EBITDA $ 58,843 $ 59,306 $ (125) $ 59,181 $ 50,159 $ 4,141 $ 54,300
TotalNon-Core
Three Months Ended
March 31, 2018March 31, 2019
Total Core CoreTotalNon-Core
December 31, 2018

FFO, Operating FFO and Adjusted Operating FFO
Reconciliation
*The company’s calculations of Operating FFO and Adjusted Operating FFO may not be comparable to Operating FFO and Adjusted Operating FFO as calculated by other REITs that do not use the same definition
$ in thousands
FFO
Net income (loss) $ 21,148 $ 10,474 $ (4,072) $ 6,402 5,083 $ (5,335) $ (252)
Real estate depreciation and amortization 35,927 35,640 — 35,640 31,192 865 32,057
Gain on sale of real estate, net (13,408) — — — — — —
Pro rata share of FFO from unconsolidated entity 41 — — — — — —
FFO 43,982 46,114 (4,072) 42,042 36,275 (4,470) 31,805
Preferred stock dividends (7,045) (7,045) — (7,045) (328) — (328)
FFO available to common stockholders & OP unit holders 36,937 39,069 (4,072) 34,997 35,947 (4,470) 31,477
Restructuring costs — 138 4,108 4,246 — 8,530 8,530
Tax benefit associated with restructuring, transaction and integration costs — — (161) (161) — (1,635) (1,635)
Operating FFO available to common stockholders & OP unit holders* 38,151 40,081 (125) 39,956 36,867 2,425 39,292
Maintenance Capex (709) (1,460) — (1,460) (930) — (930)
Leasing commissions paid (6,515) (5,204) — (5,204) (5,839) (71) (5,910)
Amortization of deferred financing costs and bond discount 978 974 — 974 962 — 962
Non real estate depreciation and amortization 2,861 2,619 — 2,619 2,148 1,709 3,857
Straight line rent revenue and expense and other (1,422) (1,958) 6 (1,952) (2,509) (9) (2,518)
Tax expense (benefit) from operating results 211 38 — 38 (767) — (767)
Equity-based compensation expense 3,300 3,531 — 3,531 3,481 — 3,481
Adjustments for unconsolidated entity 22 — — — — — —
Adjusted Operating FFO available to common stockholders & OP unit holders* $ 36,877 $ 38,621 $ (119) $ 38,502 $ 33,413 $ 4,054 $ 37,467
Core
March 31, 2019
Total Core
December 31, 2018
TotalNon-Core TotalNon-Core
March 31, 2018
Three Months Ended

MRR Reconciliation
$ in thousands
Recognized MRR in the period
Total period revenues $ 112,689 $ 112,334 $ 3 $ 112,337 $ 100,390 $ 13,307 $ 113,697
Less: Total period recoveries (10,793) (11,629) — (11,629) (11,513) — (11,513)
Total period deferred setup fees (3,232) (3,104) — (3,104) (2,888) (5) (2,893)
Total period straight line rent and other (3,942) (4,465) (34) (4,499) (3,899) (552) (4,451)
Recognized MRR in the period 94,722 93,136 (31) 93,105 82,090 12,750 94,840
MRR at period end
Total period revenues $ 112,689 $ 112,334 $ 3 $ 112,337 $ 100,390 $ 13,307 $ 113,697
Less: Total revenues excluding last month (73,809) (73,852) (2) (73,854) (66,790) (8,871) (75,661)
Total revenues for last month of period 38,880 38,482 1 38,483 33,600 4,436 38,036
Less: Last month recoveries (3,871) (3,822) — (3,822) (3,107) — (3,107)
Last month deferred setup fees (1,242) (1,015) — (1,015) (962) (2) (964)
Last month straight line rent and other (2,068) (2,504) (1) (2,505) (1,669) (382) (2,051)
Add: Pro rata share of MRR at period end of unconsolidated entity 253 — — — — — —
MRR at period end $ 31,952 $ 31,141 $ — $ 31,141 $ 27,862 $ 4,052 $ 31,914
March 31, 2019
Total Core CoreTotalNon-Core
December 31, 2018
Non-Core
March 31, 2018
Three Months Ended
Total

Q1 2019 Earnings Presentation

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