01/03/2021 - QTS Realty Trust Inc.: Q1 2021 Investor Presentation

Forward Looking Statements

Some of the statements contained in this document 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 the COVID-19 pandemic, its impact on the Company and the Company's response thereto and to the Company's strategy, plans, intentions, capital resources, liquidity, 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.

The forward-looking statements contained in this document reflect the Company's current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause actual results to differ significantly from those expressed in any forward-looking statement. The Company does 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 the Company's 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 the COVID-19 pandemic, including, but not limited to, the risk of business and/or operational disruptions, disruption of the Company's customers' businesses that could affect their ability to make rental payments to the Company, supply chain disruptions and delays in the construction or development of the Company's data centers;

• • risks related to our international operations;

• • difficulties in identifying properties to acquire and completing acquisitions;

• • the Company's 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 the Company operates; 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 the Company's failure to obtain necessary outside financing;

• • dependence on third parties to provide Internet, telecommunications and network connectivity to the Company's data centers;

• • the Company's failure to qualify and maintain its qualification as a real estate investment trust;

• • 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 the Company's 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. The Company disclaims 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 the Company's future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2020, as well as other periodic reports the Company files with the Securities and Exchange Commission, many of which should be interpreted as being heightened as a result of the ongoing COVID-19 pandemic and the actions taken to contain the pandemic or mitigate its impact.

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. 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.

2

QTS at a glance

Fastest growing data center provider to Enterprises, Hyperscale customers and Government agencies

Strategically Located Portfolio of Data CentersSignificant Expansion Capability

Raised floor

3.5M square feet1

1,050 MW

Available utility capacity2

785 acres

Adjacent owned land

$5B $7B

Equity Market Capitalization4

Enterprise

Value4

12% 20%

2020 Revenue growth

2020 Adj. EBITDA growth

1,200+600+

Employees

• 1. Represents basis-of-design floor space as of December 31, 2020. Basis-of-design floor space defined as the total data center raised floor potential of existing data center facilities.

• 2. Represents installed utility power and transformation capacity that is available for use by the facility as of December 31, 2020.

• 3. Based on data center raised floor. Includes Santa Clara, CA which is subject to a long-term ground lease and excludes data centers subject to capital lease obligations.

• 4. Market Cap calculated as: Class A and B common stock and OP units of 72.9 million incl. common stock sold in forward structure using treasury stock method, multiplied by 12/31/2020 stock price of $61.88 per share plus outstanding Series A and Series B

Preferred Stock. Enterprise Value calculated as market capitalization plus outstanding debt, net of cash

5. Reflects growth in reported revenue and adjusted EBITDA for the full-year 2020 vs full-year 2019

① ② ③ ④ ⑤

Secular trends support continued growthDiversified platform supports consistent performanceDifferentiators enable enhanced value creation and market share expansion

Industry-leading and de-risked growth outlookCritical nature of data center business supports resilient performance amidst COVID-19

Strong Secular Drivers Support Continued Growth in Data Center Demand

Data Center Outsourcing

66% of IT infrastructure to be outsourced by 2023(1), driven by worldwide digital transformation & cloud adoption

Digital Transformation

"There is no alternative to digital transformation; Those that don't adapt will fail" Jeff Bezos - CEO of Amazon

Data Growth

Global data volume expected to reach 175 zettabytes by 2025 (27% CAGR)(2) driven by application development and Artificial Intelligence

• (1) Structure Research.

• (2) IDC Research (Data Age 2025).

• (3) IOT Analytics Research (State of the IOT 2018).

IT Infrastructure Growing and Moving Off-Premise1

Hyperscale/Cloud

Market ($B)

$406

2025

Colocation Market ($B)

2025

1.Structure Research 2.Based on MRR as of December 31, 2020, including QTS' 50% pro rata share of leases associated with unconsolidated joint ventures.

Consistent Performance Enabled by Differentiation Across Diversified Target Customer Verticals

Differentiators

Cost-advantaged mega scale infrastructureDigitized, premium customer experience through QTS' Service Delivery Platform

Industry leadership in sustainability initiativesOperational maturity & track record in highly secure deployments

Diversified Across Target Customers

• • Growth accelerant

• • Highest credit quality tenants

• • 5-10+ year contracts and long-term cash flow visibility

• • Consistency in quarter-to-quarter performance

• • Customer diversification

• • Enhanced ROIC opportunity

• • Enhanced capital efficiency

• • Growth accelerant

• • Highest barriers to entry

• • Unique value creation opportunity

Positioned for Continued Capital Efficient Growth

QTS' powered shell capacity represents 5+ years of growth

Powered Shell Capacity

1.6M SF additional capacity

• • In addition, have 785 acres of land available in majority of key markets already acquired and pad-ready 55% currently built out

3.5M SF at Full Buildout1,2

QTS Service Delivery Platform

The data center industry's first software-defined data center platform

Real-time Visibility and Control

What We Do with the Data

How We Share the Data

Over 18,000+ SDP Users | 50+ Integrations | 180M+ data points collected daily

Three Layers of Differentiated SDP Capability

Data transparency, orchestration capability and technology integration provide unmatched value for customers

Ability to remotely and dynamically manage data center infrastructure

• • Software-defined orchestration capability

• • Ability to remotely interact with data center infrastructure

• • Purchase and provision additional services

• • Application Programming Interfaces (API's) provide machine to machine interface allowing SDP to be embedded in customer and partner workflows and systems

Visibility into data within a customer's data center infrastructure

• • Data covers critical electrical, mechanical, connectivity, security and customer asset components of infrastructure within the data center

• • Access to real-time data is a key differentiator in the market

• • All locations captured allowing a single view across multi-site QTS deployments

• • Public cloud providers

• • Private cloud providers

• • Network and connectivity

Committed to Deliver on Highest Standards in ESG Principles

Global Real Estate Sustainability Benchmark (GRESB) ranks QTS #1 among data centers for ESG initiatives and leadership

Procure 100% of power from renewable sources by 2025 (32% today)

Pursue Green Building certification in 90% of QTS properties by 2025

Install EV charging stations in 75% of our facilities by 2025

Conserve at least 15 million gallons of water per year, up from 10 million in 2019

Recycle 600 million pounds of material by 2025

Opened three new facilities in Atlanta, Hillsboro & Eemshaven

5th consecutive year that QTS has led data center industry in customer satisfaction

Net Promoter Score:

40

Industry Average

+40% increase Y/Y in signed leasing activity

12th consecutive year of

"5 Nines" or greater facility uptime performance

12

Q4 20 & 2020 Leasing Review

Signed new and modified leases totaling $40M of incremental annualized rent1

Incremental Annualized Rent Signed by Quarter ($M)1,3

2Q17

3Q17

4Q17

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

3Q20

4Q20

• 1. Incremental annualized revenue from new and modified renewal leases, net of downgrades.

• 2. Backlog of signed but not yet commenced annualized monthly recurring revenue as of 12/31/20. Adjusting backlog for the effects of revenue which had begun recognition via straight-line rent, the Company's annualized booked-not-billed backlog was $87.1 million.

• 3. 2017 and 2018 data reflects results for the Core business only

Consistent Performance Drives Strong Visibility into Future Growth

Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20

Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20

1) 2017 & 2018 figures represent results for Core business only; 2) trailing twelve month incremental annualized revenue signed from new and modified renewal leases, net of downgrades, 2017 & 2018 represent results for Core business only; 3) backlog of signed but not yet commenced annualized monthly recurring revenue, 2018 represents results for Core business only.

Highlights

• • Leverage of 3.9x3 net debt to LQA adj. EBITDA, including forward equity proceeds; net debt to LQA adj. EBITDA of 5.7x at the end of Q4 2020

• • Approximately $1.2B of available liquidity, including $588M4 of undrawn forward equity proceeds

• • Undrawn forward equity proceeds represent funding sufficient to support current capital development plan in 2020

  $1,026

  2021

• • No significant debt maturities until 2023 and beyond

• • ~2/3 of debt is subject to a fixed rate, including interest rate swap agreements

2022

2023

2024

2025

2026+

1. Includes three term loans ($700 million in aggregate) and approximately $392 million of borrowings on revolving credit facility as of December 31, 2020

2.Market Cap calculated as: Class A and Class B common stock and OP units of 72.9 million incl. common stock sold in forward structure using treasury stock method, multiplied by 12/31/2020 stock price of $61.88 per share.

• 3. Adjusted for the effects of cash expected to be received upon the full physical settlement of, and issuance of 10.0 million shares of common stock pursuant to forward equity sales through the date of this report, assuming such proceeds were used to repay a portion of the Company's outstanding debt. The company expects to use the proceeds from these forward equity agreements to fund future capital expenditures.

• 4. Reflects net proceeds available at the Company's election to physically settle the forward equity sales

• 5. Includes QTS' pro rata share of debt at the joint venture

• 6. Net of cash and cash equivalents

Diversified Business Model Across Customers, Verticals and Markets

• • Customer base comprised of more than 1,200 different companies of all sizes representing an array of industries, each with unique and varied business models and needs

• • QTS serves Fortune 1000 companies as well as SMBs, including financial institutions, healthcare companies, retail companies, government agencies, communications service providers, software companies, global Internet companies

• • Only 5 customers account for more than 3% of monthly recurring revenue, with the largest customer accounting for 13.1% and next largest accounting for only 5.4%

• 1. Percentage of in-place monthly recurring revenue as of 12/31/2020.

• 2. Represents Q4 2020 annualized MRR inclusive of unconsolidated joint ventures at the JVs' 100% share. Other reflects the sum of markets that represent 3% of MRR. May not sum due to rounding

Appendix

Three Months Ended

$ in millions

Net Operating Income (NOI)

Net income (loss)

Equity in net loss of unconsolidated entity Interest income

Interest expense Depreciation and amortization Debt restructuring costs Other (income) expense Tax expense (benefit)

Transaction, integration and impairment costs General and administrative expenses

Gain on sale of real estate, net Restructuring

NOI from consolidated operations

Pro rata share of NOI from unconsolidated entity Total NOI

December 31, 2020

$

(10,660)

411 -

9,122

55,887

18,036 -

242

2,665

$

20,809 - - 96,512 1,172

$

97,684

September 30, 2020

$

6,907 366 - 7,516 51,378 - - 227 1,078 22,082 - -

$

89,554 1,180

$

90,734

December 31, 2019

$

(3,606)

481

(8)

6,264

45,161

1,523

380

(816)

12,110

20,866

(1,361)

$

- 80,994 841

$

81,835

Year EndedDecember 31,2020

2019

$

14,576 $ 31,665

2,044 1,473

(2) 30,724

199,889 168,305

18,036 1,523

(159) 50

438 (37)

4,340 15,190

84,965 80,385

$

- - 354,851 4,122

$

358,973

(111) 26,593

(14,769)

$

- 310,267 2,789

$

313,056

Three Months Ended

$ in millions

EBITDAre and Adjusted EBITDA Net income (loss)

Equity in net loss of unconsolidated entity Interest income

Interest expense Tax expense (benefit) Depreciation and amortization

(Gain) Loss on disposition of depreciated property Impairments of depreciated property

Pro rata share of EBITDAre from unconsolidated entity EBITDAre

December 31, 2020

$

(10,660)

411 -

9,122

242

55,887 - -

$

1,167 56,169

September 30, 2020

$

6,907

366 -

7,516

227

51,378 - -

1,178

$

67,572

December 31, 2019

Year EndedDecember 31,2020

2019

$

(3,606)

481

(8)

6,264

(816)

45,161

- - (13,408)

11,461 - 11,461

830

$

59,767

$

14,576 $ 31,665

2,044 1,473

(2) (111)

30,724 26,593

438 (37)

199,889

4,088 2,775

$

251,757

168,305

$

228,716

Debt restructuring costs Equity-based compensation expense Restructuring costs

Transaction, integration and implementation costs Adjusted EBITDA

18,036 6,862 - 2,665

$

83,732

- 7,315 - 1,099

$

75,986

1,523 4,360 - 649

$

66,299

18,036 1,523

25,133 16,412

- 4,361

$

299,287

- 3,729

$

250,380

FFO, Operating FFO and Adjusted Operating FFO Reconciliation

$ in millions FFO

Net income (loss)

Equity in net loss of unconsolidated entity Real estate depreciation and amortization Gain on sale of real estate, net Impairments of depreciated property

Pro rata share of FFO from unconsolidated entity FFO

Preferred stock dividends

FFO available to common stockholders & OP unit holders

Debt restructuring costs

Restructuring costs

Transaction and integration costs

Tax benefit associated with restructuring, transaction and integration costs Operating FFO available to common stockholders & OP unit holders (1)

Maintenance capital expenditures

Leasing commissions paid Amortization of deferred financing costs

Non real estate depreciation and amortization Straight line rent revenue and expense and other Tax expense (benefit) from operating results Equity-based compensation expense Adjustments for unconsolidated entity

Adjusted Operating FFO available to common stockholders & OP unit holders (1)

(1)

December 31, 2020

$

(10,660)

411

52,763 - -

495

$

43,009

$

(7,045) 35,964

$

18,036 - 2,665 - 56,665

(2,000)

(11,271)

1,180

3,124

(8,748)

242

6,862

(72)

$

45,982

$

6,907

366

47,880 -

(0)

512

$

55,665

(7,045)

$

48,620

- - 1,078 -

$

49,698

(2,268)

(9,670)

990

3,498

(7,196)

227

7,315

(211)

$

42,383

$

(3,606)

481 41,947

- - (13,408)

11,461 - 11,461

$

324 50,607 (7,045)

$

43,562

1,523 - 649 -

$

45,734

(910)

(10,757)

982

3,214

(3,243)

(816)

4,360

75

$

38,639

$

14,576 $ 31,665

2,044 1,473

186,539 156,387

1,684 1,078

$

204,843 (28,180)

$

176,663

18,036 - 4,340 -

$

199,039

2019

$

188,656 (28,180)

$

160,476

$

165,728

(10,150) (4,233)

(36,744) (31,102)

4,148 3,917

13,350 11,918

(25,401) (7,922)

438 (37)

25,133 16,412

(304) 118

$

169,509

$

154,799

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.

1,523 - 3,729 -

Three Months Ended

$ in millions

Recognized MRR in the period Total period revenues (GAAP basis)

Less: Total period variable lease revenue from recoveries

Total period deferred setup fees

Total period straight line rent and other

Recognized MRR in the period

MRR at period end

Total period revenues (GAAP basis) Less: Total revenues excluding last month Total revenues for last month of period

Less: Last month variable lease revenue from recoveries

Last month deferred setup fees

Last month straight line rent and other

Add: Pro rata share of MRR at period end of unconsolidated entity MRR at period end

December 31, 2020

$

143,897 (14,648) (6,585) (10,201)

$

112,463

143,897

(96,260)

$

47,637

(4,953)

(2,207)

(2,349)

411

$

38,539

September 30, 2020

$

137,538 (14,887)

(5,300) (9,184)

$

108,167

137,538

(91,485)

$

46,053

(4,643)

(1,864)

(3,044)

411

$

36,913

December 31, 2019

$

123,707 (14,018)

(4,062) (5,156)

$

100,471

123,707

(81,699)

$

42,008

(4,578)

(1,333)

(2,413)

350

$

34,034

Year EndedDecember 31,2020

2019

$

539,368

(54,337) (55,046)

(20,330) (15,156)

(36,744) (20,349)

$

427,957

539,368 (491,731)

$

480,818

$

390,267

480,818 (438,810)

$

47,637

(4,953) (4,578)

(2,207) (1,333)

(2,349) (2,413)

411

$

38,539

$

42,008

350

$

34,034