Terms

Series

5.200% Series L Cumulative Redeemable Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

5.2%

Rate Type

Fixed

Annual Dividend

$1.30

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

October 10, 2024

First Call Price

$25.00

Capital Stack Ranking

Junior To: All Existing And Future Debt Obligations, Any Capital Stock Expressly Designated As Senior (None Currently Outstanding); Pari Passu With: 6.625% Series C Cumulative Redeemable Perpetual Preferred Stock, 5.875% Series G Cumulative Redeemable Preferred Stock, 6.350% Series I Cumulative Redeemable Preferred Stock, 5.250% Series J Cumulative Redeemable Preferred Stock, 5.850% Series K Cumulative Redeemable Preferred Stock; Senior To: Common Stock, Any Capital Stock Expressly Designated As Junior To The Series L Preferred Stock

Regulatory (Basel III) Call

No

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

12,000,000

Prospectus Summary

Digital Realty Trust, Inc. is offering 12,000,000 shares of its 5.200% Series L Cumulative Redeemable Preferred Stock with a $25.00 liquidation preference, paying a fixed annual dividend of $1.30 per share ($0.325 quarterly) in arrears on or about the last day of March, June, September, and December, beginning December 31, 2019. The stock is perpetual with no stated maturity. Being cumulative, any missed dividends accrue and must be paid in full before any dividends can be paid to common or junior stockholders — providing a meaningful layer of income protection for holders. The issuer may optionally redeem at $25.00 per share on or after October 10, 2024. Series L preferred stock ranks senior to Digital Realty's common stock and any junior capital stock, and on parity with its existing Series C, G, I, J, and K preferred stock. It ranks junior to all of the company's existing and future debt obligations, which totaled approximately $10.8 billion as of June 30, 2019. Importantly, this is a holding company issuance: the preferred stock is structurally subordinated to debt held at the operating partnership level (Digital Realty Trust, L.P.), through which the company conducts substantially all operations. There is no regulatory capital call provision (this is a REIT, not a bank), though early redemption before October 10, 2024 is permitted in limited circumstances to preserve REIT status and upon a qualifying Change of Control. At par, the Series L preferred stock yields 5.20% annually. As a REIT, Digital Realty's dividends generally do not qualify for the preferential 15%/20% qualified dividend income (QDI) rate for individual investors, nor the dividends-received deduction (DRD) for corporate holders — they are typically taxed as ordinary income. Dividends are paid quarterly on or about the last day of March, June, September, and December. If dividends fall six or more quarterly periods in arrears (whether or not consecutive), preferred holders gain the right to elect two directors to the board. Additionally, the operating partnership's credit facility covenants can block dividend payments following an event of default, except as required to maintain REIT qualification.

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 L preferred stock are in arrears, no dividends may be paid on common stock or any junior-ranking capital stock. Additionally, an event of default under the operating partnership's credit facilities can block preferred dividend payments except as needed to preserve REIT qualification.

Other Preferreds from Digital Realty Trust Inc

Div Score Breakdown

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