Noncontrolling Interests - Operating Partnership

9 Months Ended

Sep. 30, 2018

Noncontrolling Interests - Operating Partnership

Noncontrolling Interests - Operating Partnership

10. 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.

The following table shows the common ownership interests in our Operating Partnership as of September 30, 2018, and December 31, 2017:

	September 30, 2018			December 31, 2017
	Number of Units	Percentage of Total		Number of Units	Percentage of Total
CoreSite Realty Corporation	36,245,285	75.8	%	33,826,264	71.0	%
Noncontrolling interests	11,579,280	24.2		13,836,336	29.0
Total	47,824,565	100.0	%	47,662,600	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 nine months ended September 30, 2018, we issued 169,021 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 received aggregate distributions of $3.04 per unit during the nine months ended September 30, 2018, payable in correlation with declared dividends on shares of our common stock.

During the nine months ended September 30, 2018, 2,257,056 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 2,257,056 shares of our common stock. This redemption was recorded as a $21.0 million reduction to noncontrolling interests in our Operating Partnership and an increase to total stockholder’s equity in the condensed consolidated balance sheets.

The redemption value of the noncontrolling interests at September 30, 2018, was $1.3 billion based on the closing price of the Company’s common stock of $111.14 per share on the last trading day prior to that date.