Noncontrolling Interests - Operating Partnership

6 Months Ended

Jun. 30, 2015

Noncontrolling Interests - Operating Partnership

Noncontrolling Interests - Operating Partnership

8. 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 June 30, 2015, and December 31, 2014:

	June 30, 2015			December 31, 2014
	Number of Units	Percentage of Total		Number of Units	Percentage of Total
CoreSite Realty Corporation	25,990,861	55.5	%	21,287,191	45.6	%
Noncontrolling interests	20,860,847	44.5	%	25,360,847	54.4	%
Total	46,851,708	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 six months ended June 30, 2015, we issued 203,670 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 June 30, 2015, received quarterly distributions of $0.42 per unit, payable in correlation with declared dividends on common stock.

On May 1, 2015, 4,500,000 common Operating Partnership units held by third parties were redeemed for shares of our common stock in connection with the offer and sale of 4,500,000 shares of our common stock by The Carlyle Group. This redemption was recorded as a $59.1 million 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 June 30, 2015, was $947.9 million based on the closing price of the Company’s common stock of $45.44 on that date.