Derivative Instruments

3 Months Ended

Mar. 31, 2014

Derivative Instruments

14. Derivative Instruments

As of March 31, 2014 and December 31, 2013, we had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (in thousands):

Notional Amount								Fair Value at Significant Other Observable Inputs (Level 2)
As of March 31, 2014		As of December 31, 2013		Type of Derivative	Strike Rate	Effective Date	Expiration Date	As of March 31, 2014	As of December 31, 2013
Currently-paying contracts
$    410,905	(1)	$    410,905	(1)	Swap	0.717	Various	Various	$            (234)	$              (76)
150,696	(2)	150,040	(2)	Swap	0.925	Jul. 17, 2012	Apr. 18, 2017	474	131
561,601		560,945						240	55
Forward-starting contracts
150,000	(3)	-		Forward-starting Swap	2.091	Jul. 15, 2014	Jul. 15, 2019	(681)	-
Total
$    711,601		$    560,945						$            (441)	$              55

(1) Represents the U.S. dollar tranche of the unsecured term loan.

(2) Represents a portion of the Singapore dollar tranche of the unsecured term loan. Translation to U.S. dollars is based on exchange rate of $0.80 to 1.00 SGD as of March 31, 2014 and $0.79 to 1.00 SGD as of December 31, 2013.

(3) In January 2014, we entered into a new forward-starting swap agreement with a notional amount of $150.0 million requiring fixed rate interest payments of 2.091% for a five-year period that commences in July 2014.

As of March 31, 2014, we estimate that an additional $5.1 million will be reclassified as an increase to interest expense during the twelve months ending March 31, 2015, when the hedged forecasted transactions impact earnings.

Digital Realty Trust, L.P. [Member]

Derivative Instruments

14. Derivative Instruments

As of March 31, 2014 and December 31, 2013, we had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (in thousands):

Notional Amount								Fair Value at Significant Other Observable Inputs (Level 2)
As of March 31, 2014		As of December 31, 2013		Type of Derivative	Strike Rate	Effective Date	Expiration Date	As of March 31, 2014	As of December 31, 2013
Currently-paying contracts
$    410,905	(1)	$    410,905	(1)	Swap	0.717	Various	Various	$            (234)	$              (76)
150,696	(2)	150,040	(2)	Swap	0.925	Jul. 17, 2012	Apr. 18, 2017	474	131
561,601		560,945						240	55
Forward-starting contracts
150,000	(3)	-		Forward-starting Swap	2.091	Jul. 15, 2014	Jul. 15, 2019	(681)	-
Total
$    711,601		$    560,945						$            (441)	$              55

(1) Represents the U.S. dollar tranche of the unsecured term loan.

(2) Represents a portion of the Singapore dollar tranche of the unsecured term loan. Translation to U.S. dollars is based on exchange rate of $0.80 to 1.00 SGD as of March 31, 2014 and $0.79 to 1.00 SGD as of December 31, 2013.

(3) In January 2014, we entered into a new forward-starting swap agreement with a notional amount of $150.0 million requiring fixed rate interest payments of 2.091% for a five-year period that commences in July 2014.

As of March 31, 2014, we estimate that an additional $5.1 million will be reclassified as an increase to interest expense during the twelve months ending March 31, 2015, when the hedged forecasted transactions impact earnings.