Terms

Series

5.250% Series J Cumulative Redeemable Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

5.25%

Rate Type

Fixed

Annual Dividend

$1.31

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

August 7, 2022

First Call Price

$25.00

Capital Stack Ranking

Junior To: All Existing And Future Debt Obligations Of Digital Realty Trust, Inc., Any Capital Stock Senior To Series J Preferred Stock (None Currently Outstanding); Pari Passu With: 5.875% Series G Cumulative Redeemable Preferred Stock, 7.375% Series H Cumulative Redeemable Preferred Stock, 6.350% Series I Cumulative Redeemable Preferred Stock; Senior To: Common Stock, Any Capital Stock Junior To Series J Preferred Stock

Regulatory (Basel III) Call

No

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

8,000,000

Prospectus Summary

Digital Realty Trust, Inc. (NYSE: DLR), a Maryland-based data center REIT, is offering 8,000,000 shares of its 5.250% Series J Cumulative Redeemable Preferred Stock with a $25.00 liquidation preference per share. The fixed coupon pays $1.3125 per share annually ($0.328125 per quarter), payable on or about the last day of March, June, September, and December, beginning December 29, 2017. This security is cumulative, meaning any missed dividend payments accrue and must be paid in full before any dividends can be distributed to common stockholders. The stock is not redeemable by the issuer before August 7, 2022 (except for REIT preservation purposes), after which it is callable at par. The Series J preferred stock ranks senior to Digital Realty's common stock and any other junior capital stock with respect to dividends and liquidation proceeds. It ranks on parity with the existing Series G (5.875%), Series H (7.375%), and Series I (6.350%) cumulative redeemable preferred stocks. Critically, all preferred equity — including this series — is junior in right of payment to all existing and future debt obligations of the company and its operating partnership, including the senior unsecured revolving credit facility, term loans, and publicly issued notes. As a holding company issuer, Digital Realty Trust, Inc.'s obligations are structurally subordinated to debt at its operating partnership subsidiary, Digital Realty Trust, L.P. There is no traditional regulatory capital call; instead, a special optional redemption right exists upon a Change of Control (>50% acquisition plus common stock delisting), allowing the issuer to redeem at $25.00 plus accrued dividends within 120 days. At the $25.00 offering price, the Series J preferred stock yields 5.25% annually. Because Digital Realty Trust, Inc. operates as a REIT, dividends are generally characterized as ordinary income or return of capital distributions for tax purposes rather than qualifying dividend income (QDI), meaning they typically do not qualify for the preferential 15%/20% tax rate available to individual investors, nor for the corporate dividends-received deduction (DRD). Payment dates are on or about the last day of March, June, September, and December each year. If the issuer fails to pay dividends for six or more quarterly periods (whether or not consecutive), holders gain voting rights to elect two additional directors to the board, providing a governance remedy but not a payment guarantee.

Summarized from the SEC prospectus filing.

Distribution History

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If the issuer fails to pay series J preferred dividends for six or more quarterly periods, holders gain voting rights to elect two directors; the series J preferred ranks senior to common stock on dividends, meaning common dividends are subordinate to preferred dividend payments.

Other Preferreds from Digital Realty Trust Inc

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 48 (Average)