Noncontrolling Interests - Operating Partnership

12 Months Ended

Dec. 31, 2016

Noncontrolling Interests - Operating Partnership

Noncontrolling Interests - Operating Partnership

11. Noncontrolling Interests — Operating Partnership

Noncontrolling interests represent the limited partnership interests in our 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, our 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 our Operating Partnership as of December 31, 2016, and 2015:

	December 31, 2016			December 31, 2015
	Number of Units	Percentage of Total		Number of Units	Percentage of Total
CoreSite Realty Corporation	33,376,568	70.7	%	30,136,556	64.1	%
Noncontrolling interests	13,851,347	29.3		16,858,347	35.9
Total	47,227,915	100.0	%	46,994,903	100.0	%

For each share of common stock issued by us, our Operating Partnership issues to us an equivalent common Operating Partnership unit. During the year ended December 31, 2016, we issued 233,012 shares of common stock related to employee compensation arrangements and therefore an equivalent number of common Operating Partnership units were issued to us by our Operating Partnership.

Holders of common Operating Partnership units of record as of March 31, 2016, June 30, 2016, and September 30, 2016, received quarterly distributions of $0.53 per unit payable in correlation with declared dividends on common stock. Holders of common Operating Partnership units of record as of December 30, 2016, received quarterly distributions of $0.80 per unit payable in correlation with declared dividends on common stock.

During the year ended December 31, 2016, 3,007,000 common Operating Partnership units held by The Carlyle Group and other third parties were redeemed for shares of our common stock in connection with the sale of 3,007,000 shares of our common stock. This redemption was recorded as a $37.4 million reduction to noncontrolling interests in our Operating Partnership and an increase to total stockholder’s equity in the consolidated balance sheets. During the year ended December 31, 2015,  8,500,000 common Operating Partnership units held by The Carlyle Group were redeemed for shares of our common stock in connection with the sale of 8,500,000 shares of our common stock. This redemption was recorded as a $110.2 million reduction to noncontrolling interests in our Operating Partnership and an increase to total stockholder’s equity in the consolidated balance sheets.

The redemption value of the noncontrolling interests at December 31, 2016, was $1.1 billion based on the closing price of the Company’s common stock of $79.37 on that date.