Noncontrolling Interests - Operating Partnership

12 Months Ended

Dec. 31, 2015

Noncontrolling Interests - Operating Partnership

Noncontrolling Interests - Operating Partnership

11. Noncontrolling Interests—Operating Partnership

        Noncontrolling interests represent the limited partnership interests in the Operating Partnership held by individuals and entities other than CoreSite Realty Corporation. The current holders of common Operating Partnership units are eligible to have the common Operating Partnership units redeemed for cash or common stock on a one-for-one basis, at our option.

        In connection with the issuance of our 7.25% Series A cumulative redeemable preferred stock on December 12, 2012, the Operating Partnership issued 4,600,000 7.25% Series A cumulative redeemable preferred Operating Partnership units to us. Preferred Operating Partnership units rank senior to the common Operating Partnership units held by both us and noncontrolling interests.

        The following table shows the ownership interests in the Operating Partnership as of December 31, 2015, and 2014:

	December 31, 2015					December 31, 2014
	Number of Units		Percentage of Total			Number of Units		Percentage of Total
CoreSite Realty Corporation		30,136,556		64.1	%		21,287,191		45.6	%
Noncontrolling interests		16,858,347		35.9	%		25,360,847		54.4	%
Total		46,994,903		100.0	%		46,648,038		100.0	%

        For each share of common stock issued by us, the Operating Partnership issues to us an equivalent common Operating Partnership unit. During the year ended December 31, 2015, the Company issued 349,365 shares of common stock related to employee compensation arrangements and therefore an equivalent number of common Operating Partnership units were issued to us by the Operating Partnership.

        Holders of common Operating Partnership units of record as of March 31, 2015, June 30, 2015, and September 30, 2015, received quarterly distributions of $0.42 per unit payable in correlation with declared dividends on common stock. Holders of common Operating Partnership units of record as of December 31, 2015, received quarterly distributions of $0.53 per unit payable in correlation with declared dividends on common stock.

        During the year ended December 31, 2015, 8,500,000 common Operating Partnership units held by the Funds were redeemed for shares of our common stock in connection with the offer and sale of 8,500,000 shares of our common stock by The Funds. The book value attributable to each common Operating Partnership unit redeemed was $110.2 million and was recorded as a reduction to noncontrolling interests in the Operating Partnership and an increase to common stock and additional paid-in capital.

        The redemption value of the noncontrolling interests at December 31, 2015, was $956.2 million based on the closing price of the Company's common stock of $56.72 on that date.