Noncontrolling Interests - Operating Partnership

3 Months Ended

Mar. 31, 2017

Noncontrolling Interests - Operating Partnership

Noncontrolling Interests - Operating Partnership

8. 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 March 31, 2017, and December 31, 2016:

	March 31, 2017			December 31, 2016
	Number of Units	Percentage of Total		Number of Units	Percentage of Total
CoreSite Realty Corporation	33,764,350	70.9	%	33,376,568	70.7	%
Noncontrolling interests	13,851,347	29.1		13,851,347	29.3
Total	47,615,697	100.0	%	47,227,915	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 three months ended March 31, 2017, we issued 387,782 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, 2017, received quarterly distributions of $0.80 per unit, payable in correlation with declared dividends on common stock.

The redemption value of the noncontrolling interests at March 31, 2017, was $1.2 billion based on the closing price of the Company’s common stock of $90.05 per share on that date.