Terms

Series

5.850% Series K Cumulative Redeemable Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

5.85%

Rate Type

Fixed

Annual Dividend

$1.46

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

March 13, 2024

First Call Price

$25.00

Capital Stack Ranking

Junior To: All Existing And Future Debt Obligations, Any Class Or Series Of Capital Stock Expressly Designated As Ranking Senior (None Existing As Of The Date Of The Prospectus); Pari Passu With: 6.625% Series C Cumulative Redeemable Perpetual Preferred Stock, 5.875% Series G Cumulative Redeemable Preferred Stock, Series H Preferred Stock, 6.350% Series I Cumulative Redeemable Preferred Stock, 5.250% Series J Cumulative Redeemable Preferred Stock; Senior To: Common Stock, Any Class Or Series Of Capital Stock Expressly Designated As Junior To The Series K Preferred Stock

Regulatory (Basel III) Call

Yes

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

8,000,000

Prospectus Summary

Digital Realty Trust, Inc. is offering 8,000,000 shares of its 5.850% Series K Cumulative Redeemable Preferred Stock with a $25.00 liquidation preference per share (par value $0.01). The fixed annual dividend is $1.4625 per share ($0.365625 per quarter), paid on or about the last day of March, June, September, and December, beginning June 28, 2019. The Series K preferred is cumulative — if Digital Realty skips or reduces a dividend, the unpaid amounts continue to accrue and must be paid in full before any dividends can be paid to common stockholders. The stock is perpetual with no mandatory redemption date, but is callable at the issuer's option at $25.00 per share on or after March 13, 2024. The Series K preferred stock sits senior to Digital Realty's common stock and any junior-designated capital stock, and ranks on parity with its Series C, G, H, I, and J preferred stocks. It is junior to all of Digital Realty's existing and future debt obligations, meaning bondholders and other creditors are paid before preferred stockholders in any liquidation scenario. Because Digital Realty Trust, Inc. is a holding company, the preferred stock is structurally subordinated to the liabilities of its operating subsidiary, Digital Realty Trust, L.P. The issuer retains a special optional redemption right allowing it to redeem the Series K preferred within 120 days of a Change of Control at $25.00 plus accrued dividends, and may also redeem prior to 2024 solely to preserve its REIT status — both provisions could result in earlier-than-expected redemption. At the $25.00 offering price, the Series K preferred yields 5.85% annually. As a REIT issuer, dividends are generally classified as ordinary income (REIT pass-through) rather than qualified dividend income, meaning they typically do not qualify for the preferential 15%/20% QDI tax rate for individuals or the dividends-received deduction for corporate holders. Dividend payments may be interrupted if the issuer has no legally available funds or ceases to declare dividends, though the cumulative feature ensures any skipped dividends accrue as an obligation. Common stock dividends are effectively blocked whenever Series K dividends are in arrears.

Summarized from the SEC prospectus filing.

Distribution History

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If dividends on the Series K preferred stock are in arrears, the issuer is generally restricted from paying dividends on or repurchasing common stock or any other class of capital stock ranking junior to the Series K preferred stock.

Other Preferreds from Digital Realty Trust Inc

Div Score Breakdown

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