8-KOther Events

DIGITAL REALTY TRUST, INC. 8-K Report, Corporate Update (Jul 22, 2010)

Filed July 22, 2010For Securities:DLRDLR-PJDLR-PKDLR-PL

Summary

Digital Realty Trust, Inc. (DLR) has filed an 8-K report on July 22, 2010, to announce the redemption of all outstanding shares of its 8.50% Series A Cumulative Redeemable Preferred Stock. The redemption will occur on August 24, 2010, with each share being redeemed at a price of $25.31285, which includes the original issuance price of $25.00 plus accrued and unpaid dividends. This action effectively removes this preferred stock series from the company's capital structure. Investors should note that the company will recognize a charge of $4.2 million in the third quarter of 2010 related to the initial issuance costs of this preferred stock. This charge will impact both net income available to common stockholders and Funds from Operations (FFO) as per ASC 260. The filing also includes standard forward-looking statements outlining potential risks and uncertainties that could affect the company's future performance.

Key Highlights

  • 1Digital Realty Trust (DLR) is redeeming all of its 8.50% Series A Cumulative Redeemable Preferred Stock.
  • 2The redemption date is set for August 24, 2010.
  • 3Each share of Series A Preferred Stock will be redeemed at $25.31285, comprising the $25.00 principal and accrued dividends.
  • 4A charge of $4.2 million related to the preferred stock issuance costs will be recognized in Q3 2010.
  • 5This charge will reduce net income available to common stockholders and Funds from Operations (FFO).
  • 6Holders of Series A Preferred Stock will cease to have rights as shareholders after the redemption date, other than the right to receive the redemption price.

Frequently Asked Questions

This 8-K filing serves to formally notify investors and the market about Digital Realty Trust's decision to redeem all of its outstanding 8.50% Series A Cumulative Redeemable Preferred Stock.

The redemption price is $25.31285 per share. This amount includes the original issuance price of $25.00 per share plus any accrued and unpaid dividends up to, but not including, the redemption date.

The redemption date is August 24, 2010. After this date, dividends on these shares will no longer accrue, and holders will only be entitled to the redemption price.

Digital Realty will record a charge of $4.2 million in the third quarter of 2010. This charge represents the initial issuance costs of the preferred stock and will be recognized as a reduction in both net income available to common stockholders and Funds from Operations (FFO) according to ASC 260.