Noncontrolling Interests - Operating Partnership

9 Months Ended

Sep. 30, 2013

Noncontrolling Interests - Operating Partnership

Noncontrolling Interests - Operating Partnership

7. 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. Since September 28, 2011, the current holders of Common Operating Partnership units have been eligible to have the Common Operating Partnership units redeemed for cash or, at our option, exchangeable into our common stock on a one-for-one basis. We have evaluated whether we control the actions or events necessary to issue the maximum number of shares that could be required to be delivered under the share settlement of the Common Operating Partnership units. Based on the results of this analysis, we concluded that the Common Operating Partnership units met the criteria to be classified within equity at September 30, 2013.

The following table shows the ownership interest in the Operating Partnership as of September 30, 2013, and December 31, 2012:

	September 30, 2013			December 31, 2012
	Number of Units	Percentage of Total		Number of Units	Percentage of Total
The Company	20,872,386	45.1	%	20,610,523	44.8	%
Noncontrolling interests consist of:
Common units held by third parties	25,275,390	54.7	%	25,275,390	55.0	%
Incentive units held by employees	85,457	0.2	%	78,319	0.2	%
Total	46,233,233	100.0	%	45,964,232	100.0	%

For each share of common stock issued by the Company, the Operating Partnership issues an equivalent Common Operating Partnership unit to the Company. During the nine months ended September 30, 2013, the Company issued 262,665 shares of common stock related to employee compensation arrangements and, therefore, an equivalent number of Common Operating Partnership units were issued to the Company by the Operating Partnership.

Holders of Common Operating Partnership units of record as of March 28, 2013, June 28, 2013, and September 30, 2013, received quarterly distributions of $0.27 per unit payable in correlation with declared dividends on common shares.

On December 12, 2012, the Operating Partnership issued 4.6 million Preferred Operating Partnership units to the Company in connection with our issuance of Series A Cumulative Preferred Stock. The Preferred Operating Partnership units rank senior to the Common Operating Partnership units held by the Company and noncontrolling interests.

The redemption value of the noncontrolling interests at September 30, 2013, was $860.7 million based on the closing price of the Company’s stock of $33.94 on September 30, 2013, the last trading day of the quarter.

- Definition

The entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock.

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