8-KOther Events

DIGITAL REALTY TRUST, INC. 8-K Report, Corporate Update (Nov 9, 2010)

Filed November 9, 2010For Securities:DLRDLR-PJDLR-PKDLR-PL

Summary

Digital Realty Trust, Inc. (DLR) announced on November 9, 2010, its intention to redeem all outstanding shares of its 7.875% Series B Cumulative Redeemable Preferred Stock. The redemption will occur on December 10, 2010, with each share being repurchased at $25.37734, which includes the original issuance price of $25.00 plus accrued and unpaid dividends. This action will remove the Series B Preferred Stock from the company's capital structure. Additionally, the company disclosed that initial issuance costs of approximately $2.7 million related to this preferred stock series will be recognized as a reduction of earnings in the fourth quarter of 2010. This charge will impact both net income available to common stockholders and Funds from Operations (FFO), a key metric for REITs. Investors should note this non-cash charge affecting reported earnings and FFO for the upcoming quarter.

Key Highlights

  • 1Digital Realty Trust (DLR) will redeem all outstanding shares of its 7.875% Series B Cumulative Redeemable Preferred Stock.
  • 2The redemption date is set for December 10, 2010.
  • 3Each share of Series B Preferred Stock will be redeemed at a price of $25.37734 per share.
  • 4The redemption price includes the original issuance price of $25.00 plus accrued dividends.
  • 5A charge of approximately $2.7 million for initial issuance costs will be recognized in Q4 2010.
  • 6This charge will be recorded as a reduction to both net income available to common stockholders and Funds from Operations (FFO).

Frequently Asked Questions

This 8-K filing serves as an official notification to the SEC and investors that Digital Realty Trust (DLR) will be redeeming all of its outstanding 7.875% Series B Cumulative Redeemable Preferred Stock.

The redemption price is $25.37734 per share. This amount consists of 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 scheduled for December 10, 2010. After this date, holders of the Series B Preferred Stock will no longer accrue dividends and will only be entitled to receive the specified redemption price.

Yes, Digital Realty Trust will recognize an approximate $2.7 million charge in the fourth quarter of 2010. This charge relates to the initial issuance costs of the Series B Preferred Stock and will be recorded as a reduction to both net income available to common stockholders and Funds from Operations (FFO).