Digital Realty Announces Tax Treatment of 2017 Dividends
SAN FRANCISCO, Jan. 25, 2018 /PRNewswire/ -- Digital Realty (NYSE: DLR), a leading global provider of data center, colocation and interconnection solutions, announced today the tax treatment of the 2017 dividends for (i) Digital Realty Trust, Inc. common stock and preferred stock and (ii) DuPont Fabros Technology, Inc. common stock and preferred stock for the period prior to Digital Realty's acquisition of DuPont Fabros Technology, Inc. The tables attached to this press release as exhibits provide the tax treatment of dividends on Digital Realty common stock and preferred stock for the full-year 2017 and DuPont Fabros Technology, Inc. common stock and preferred stock paid prior to September 14, 2017. Exhibit A presents information regarding Digital Realty common stock, including common stock of the combined company, and DuPont Fabros Technology, Inc. common stock. Exhibit B presents information regarding Digital Realty preferred stock, including preferred stock of the combined company, and DuPont Fabros Technology, Inc. preferred stock.
The attached information has been prepared using the best available information to date. Digital Realty's federal income tax return for the year ended December 31, 2017 has not yet been filed. Please note that federal tax laws affect taxpayers differently, and we cannot advise you on how distributions should be reported on your federal income tax return. Please also note that state and local taxation of REIT distributions vary and may not be the same as the federal rules. Shareholders are urged to consult with their tax advisor as to their specific tax treatment of these distributions.
Exhibit A
Tax Treatment of 2017 Common Stock Dividends
Digital Realty Trust, Inc.
Common Stock Dividends
The 2017 taxable dividend of $3.209752 per share includes one quarterly distribution declared in 2016 and paid in January 2017, and three quarterly distributions declared and paid in 2017. The 2017 taxable dividend will be classified on Form 1099-DIV as follows: $3.041157 per share (95%) as ordinary income and $0.168595 per share (5%) as capital gain distribution.
CUSIP Ticker Record Payment Cash Taxable Ordinary Long-Term Unrecaptured
Symbol Dates Dates Distribution Dividend Dividend Capital Gain Section 1250 Gain
($ per share) ($ per share) ($ per share) ($ per share) ($ per share)
--- ------------ ------------ ------------ ------------ ------------
253868103 DLR 12/15/2016 01/13/2017 $0.880000 $0.419752 $0.397704 $0.022048 $0.006375
--------- --- ---------- ---------- --------- --------- --------- --------- ---------
253868103 DLR 03/15/2017 03/31/2017 $0.930000 $0.930000 $0.881151 $0.048849 $0.014124
--------- --- ---------- ---------- --------- --------- --------- --------- ---------
253868103 DLR 06/15/2017 06/30/2017 $0.930000 $0.930000 $0.881151 $0.048849 $0.014124
--------- --- ---------- ---------- --------- --------- --------- --------- ---------
253868103 DLR 09/15/2017 09/29/2017 $0.930000 $0.930000 $0.881151 $0.048849 $0.014124
--------- --- ---------- ---------- --------- --------- --------- --------- ---------
$3.670000 $3.209752 $3.041157 $0.168595 $0.048747
--------- --------- --------- --------- ---------
Please note that of the $0.88 quarterly distribution declared in 2016 and paid in January 2017, $0.460248 was included in the 2016 taxable dividend and $0.419752 is included in the 2017 taxable dividend.
DuPont Fabros Technology, Inc.
Common Stock Dividends
For common shareholders of record prior to September 14, 2017
The 2017 taxable dividend of $0.378000 per share includes one quarterly distribution declared in 2016 and paid in January 2017, and two quarterly distributions declared and paid in 2017. The 2017 distribution of $1.500000 per share will be classified as $0.378000 (25%) ordinary income and $1.122000 (75%) return of capital.
CUSIP Ticker Record Payment Cash Taxable Ordinary Return of
Symbol Dates Dates Distribution Dividend Dividend Capital
($ per share) ($ per share) ($ per share) ($ per share)
--- ------------ ------------ ------------ ------------
26613Q106 DFT 12/30/2016 01/17/2017 $0.500000 $0.126000 $0.126000 $0.374000
--------- --- ---------- ---------- --------- --------- --------- ---------
26613Q106 DFT 04/03/2017 04/17/2017 $0.500000 $0.126000 $0.126000 $0.374000
--------- --- ---------- ---------- --------- --------- --------- ---------
26613Q106 DFT 07/02/2017 07/17/2017 $0.500000 $0.126000 $0.126000 $0.374000
--------- --- ---------- ---------- --------- --------- --------- ---------
$1.500000 $0.378000 $0.378000 $1.122000
--------- --------- --------- ---------
Exhibit B
Tax Treatment of 2017 Preferred Dividends
Digital Realty Trust, Inc.
Series C Cumulative Redeemable Perpetual Preferred Stock Dividends
The 2017 taxable dividend for Digital Realty Trust, Inc.'s Series C Cumulative Redeemable Perpetual Preferred Stock was $0.492274 per share. For tax reporting purposes, the 2017 taxable dividend will be classified as follows: $0.466417 per share (95%) as ordinary income and $0.025857 per share (5%) as capital gain distribution.
CUSIP Ticker Record Payment Cash Taxable Ordinary Long-Term Unrecaptured
Symbol Dates Dates Distribution Dividend Dividend Capital Gain Section 1250
($ per share) Gain
($ per share) ($ per share) ($ per share) ($ per share)
--- ------------ ------------ ------------ ------------
253868848 DLRPRC 12/15/2017 12/29/2017 $0.492274 $0.492274 $0.466417 $0.025857 $0.007476
--------- ------ ---------- ---------- --------- --------- --------- --------- ---------
$0.492274 $0.492274 $0.466417 $0.025857 $0.007476
--------- --------- --------- --------- ---------
Digital Realty Trust, Inc.
Series F Cumulative Redeemable Preferred Stock Dividends
The 2017 taxable dividend for Digital Realty Trust, Inc. 's Series F Cumulative Redeemable Preferred Stock was $0.432463 per share. For tax reporting purposes, the 2017 taxable dividend will be classified as follows: $0.409748 per share (95%) as ordinary income and $0.022715 per share (5%) as capital gain distribution.
CUSIP Ticker Record Payment Cash Taxable Ordinary Long-Term Unrecaptured
Symbol Dates Dates Distribution Dividend Dividend Capital Gain Section 1250 Gain
($ per share) ($ per share) ($ per share) ($ per share)
($ per share)
--- ------------
253868806 DLRPRF 03/15/2017 03/31/2017 $0.414063 $0.414063 $0.392314 $0.021749 $0.006288
--------- ------ ---------- ---------- --------- --------- --------- --------- ---------
253868806 DLRPRF 04/05/2017 04/05/2017 $0.018400 $0.018400 $0.017434 $0.000966 $0.000279
--------- ------ ---------- ---------- --------- --------- --------- --------- ---------
$0.432463 $0.432463 $0.409748 $0.022715 $0.006567
--------- --------- --------- --------- ---------
On April 5, 2017, Digital Realty redeemed all outstanding shares of its Series F Cumulative Redeemable Preferred Stock for a total redemption price of $25.01840 per share. The redemption price was equal to the original issuance price of $25.00 per share, plus accrued and unpaid dividends up to, but not including, the redemption date.
Digital Realty Trust, Inc.
Series G Cumulative Redeemable Preferred Stock Dividends
The 2017 taxable dividend for Digital Realty Trust, Inc. 's Series G Cumulative Redeemable Preferred Stock was $1.468752 per share. For tax reporting purposes, the 2017 taxable dividend will be classified as follows: $1.391604 per share (95%) as ordinary income and $0.077148 per share (5%) as capital gain distribution.
CUSIP Ticker Record Payment Cash Taxable Ordinary Long-Term Unrecaptureds
Symbol Dates Dates Distribution Dividend Dividend Capital Gain
($ per share) Section 1250 Gains
($ per share) ($ per share) ($ per share)
($ per share)
--- ------------
253868889 DLRPRG 03/15/2017 03/31/2017 $0.367188 $0.367188 $0.347901 $0.019287 $0.005577
--------- ------ ---------- ---------- --------- --------- --------- --------- ---------
253868889 DLRPRG 06/15/2017 06/30/2017 $0.367188 $0.367188 $0.347901 $0.019287 $0.005577
--------- ------ ---------- ---------- --------- --------- --------- --------- ---------
253868889 DLRPRG 09/15/2017 09/29/2017 $0.367188 $0.367188 $0.347901 $0.019287 $0.005577
--------- ------ ---------- ---------- --------- --------- --------- --------- ---------
253868889 DLRPRG 12/15/2017 12/29/2017 $0.367188 $0.367188 $0.347901 $0.019287 $0.005577
--------- ------ ---------- ---------- --------- --------- --------- --------- ---------
$1.468752 $1.468752 $1.391604 $0.077148 $0.022308
--------- --------- --------- --------- ---------
Digital Realty Trust, Inc.
Series H Cumulative Redeemable Preferred Stock Dividends
The 2017 taxable dividend for Digital Realty Trust, Inc. 's Series H Cumulative Redeemable Preferred Stock was $1.843752 per share. For tax reporting purposes, the 2017 taxable dividend will be classified as follows: $1.746908 per share (95%) as ordinary income and $0.096844 per share (5%) as capital gain distribution.
CUSIP Ticker Record Payment Cash Taxable Ordinary Long-Term Unrecaptured
Symbol Dates Dates Distribution Dividend Dividend Capital Gain Section 1250 Gain
($ per share) ($ per share) ($ per share)
($ per share) ($ per share)
--- ------------ ------------
253868871 DLRPRH 03/15/2017 03/31/2017 $0.460938 $0.460938 $0.436727 $0.024211 $0.007000
--------- ------ ---------- ---------- --------- --------- --------- --------- ---------
253868871 DLRPRH 06/15/2017 06/30/2017 $0.460938 $0.460938 $0.436727 $0.024211 $0.007000
--------- ------ ---------- ---------- --------- --------- --------- --------- ---------
253868871 DLRPRH 09/15/2017 09/29/2017 $0.460938 $0.460938 $0.436727 $0.024211 $0.007000
--------- ------ ---------- ---------- --------- --------- --------- --------- ---------
253868871 DLRPRH 12/15/2017 12/29/2017 $0.460938 $0.460938 $0.436727 $0.024211 $0.007000
--------- ------ ---------- ---------- --------- --------- --------- --------- ---------
$1.843752 $1.843752 $1.746908 $0.096844 $0.028000
--------- --------- --------- --------- ---------
Digital Realty Trust, Inc.
Series I Cumulative Redeemable Preferred Stock Dividends
The 2017 taxable dividend for Digital Realty Trust, Inc. 's Series I Cumulative Redeemable Preferred Stock was $1.587500 per share. For tax reporting purposes, the 2017 taxable dividend will be classified as follows: $1.504116 per share (95%) as ordinary income and $0.083384 per share (5%) as capital gain distribution.
CUSIP Ticker Record Payment Cash Taxable Ordinary Long-Term Unrecaptured
Symbol Dates Dates Distribution Dividend Dividend Capital Gain Section 1250 Gain
($ per share) ($ per share) ($ per share) ($ per share) ($ per share)
--- ------------ ------------ ------------ ------------ ------------
253868863 DLRPRI 03/15/2017 03/31/2017 $0.396875 $0.396875 $0.376029 $0.020846 $0.006027
--------- ------ ---------- ---------- --------- --------- --------- --------- ---------
253868863 DLRPRI 06/15/2017 06/30/2017 $0.396875 $0.396875 $0.376029 $0.020846 $0.006027
--------- ------ ---------- ---------- --------- --------- --------- --------- ---------
253868863 DLRPRI 09/15/2017 09/29/2017 $0.396875 $0.396875 $0.376029 $0.020846 $0.006027
--------- ------ ---------- ---------- --------- --------- --------- --------- ---------
253868863 DLRPRI 12/15/2017 12/29/2017 $0.396875 $0.396875 $0.376029 $0.020846 $0.006027
--------- ------ ---------- ---------- --------- --------- --------- --------- ---------
$1.587500 $1.587500 $1.504116 $0.083384 $0.024108
--------- --------- --------- --------- ---------
Digital Realty Trust, Inc.
Series J Cumulative Redeemable Preferred Stock Dividends
The 2017 taxable dividend for Digital Realty Trust, Inc. 's Series J Cumulative Redeemable Preferred Stock was $0.525000 per share. For tax reporting purposes, the 2017 taxable dividend will be classified as follows: $0.497424 per share (95%) as ordinary income and $0.027576 per share (5%) as capital gain distribution.
CUSIP Ticker Record Payment Cash Taxable Ordinary Long-Term Unrecaptured
Symbol Dates Dates Distribution Dividend Dividend Capital Gain Section 1250 Gain
($ per share) ($ per share) ($ per share) ($ per share) ($ per share)
--- ------------ ------------ ------------ ------------ ------------
253868855 DLRPRJ 12/15/2017 12/29/2017 $0.525000 $0.525000 $0.497424 $0.027576 $0.007973
--------- ------ ---------- ---------- --------- --------- --------- --------- ---------
$0.525000 $0.525000 $0.497424 $0.027576 $0.007973
--------- --------- --------- --------- ---------
DuPont Fabros Technology, Inc.
Series C Cumulative Redeemable Perpetual Preferred Stock Dividends
For shareholders of record prior to September 14, 2017
The 2017 taxable dividend for DFT's Series C Cumulative Redeemable Perpetual Preferred Stock was $1. 371008 per share. For tax reporting purposes, the 2017 taxable dividend will be classified as ordinary income.
CUSIP Ticker Record Payment Cash Taxable Ordinary
Symbol Dates Dividend Dividend
Dates Distribution ($ per share)
($ per share)
($ per share)
--- ------------
26613Q403 DFT.PRC 02/01/2017 02/15/2017 $0.414063 $0.414063 $0.414063
--------- ------- ---------- ---------- --------- --------- ---------
26613Q403 DFT.PRC 05/01/2017 05/15/2017 $0.414063 $0.414063 $0.414063
--------- ------- ---------- ---------- --------- --------- ---------
26613Q403 DFT.PRC 08/01/2017 08/15/2017 $0.414063 $0.414063 $0.414063
--------- ------- ---------- ---------- --------- --------- ---------
26613Q403 DFT.PRC 09/12/2017 09/13/2017 $0.128819 $0.128819 $0.128819
--------- ------- ---------- ---------- --------- --------- ---------
$1.371008 $1.371008 $1.371008
--------- --------- ---------
Please note that ticker symbols may vary by stock quote provider.
For Additional Information
Andrew P. Power
Chief Financial Officer
Digital Realty
(415) 738-6500
Investor Relations
John J. Stewart / Maria S. Lukens
Digital Realty
(415) 738-6500
investorrelations@digitalrealty.com
About Digital Realty
Digital Realty supports the data center, colocation and interconnection strategies of more than 2,300 firms across its secure, network-rich portfolio of data centers located throughout North America, Europe, Asia and Australia. Digital Realty's clients include domestic and international companies of all sizes, ranging from cloud and information technology services, to financial services, manufacturing, energy, gaming, life sciences and consumer products customers. https://www.digitalrealty.com/
Safe Harbor Statement
This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to the amount, payment, and tax treatment of dividends on Digital Realty and DFT common stock and preferred stock. These risks and uncertainties include, among others, the following: the impact of current global economic, credit and market conditions; current local economic conditions in the geographies in which we operate; decreases in information technology spending, including as a result of economic slowdowns or recession; adverse economic or real estate developments in our industry or the industry sectors that we sell to (including risks relating to decreasing real estate valuations and impairment charges); our dependence upon significant tenants; bankruptcy or insolvency of a major tenant or a significant number of smaller tenants; defaults on or non-renewal of leases by tenants; our failure to obtain necessary debt and equity financing; risks associated with using debt to fund our business activities, including re-financing and interest rate risks, our failure to repay debt when due, adverse changes in our credit ratings or our breach of covenants or other terms contained in our loan facilities and agreements; financial market fluctuations; changes in foreign currency exchange rates; our inability to manage our growth effectively; difficulty acquiring or operating properties in foreign jurisdictions; our failure to successfully integrate and operate acquired or developed properties or businesses; the suitability of our properties and data center infrastructure, delays or disruptions in connectivity, failure of our physical and information security infrastructure or services or availability of power; risks related to joint venture investments, including as a result of our lack of control of such investments; delays or unexpected costs in development of properties; decreased rental rates, increased operating costs or increased vacancy rates; increased competition or available supply of data center space; our inability to successfully develop and lease new properties and development space; difficulties in identifying properties to acquire and completing acquisitions; our inability to acquire off-market properties; the impact of the United Kingdom's referendum on withdrawal from the European Union on global financial markets and our business; our inability to comply with the rules and regulations applicable to reporting companies; our inability to comply with the rules and regulations applicable to reporting companies; our failure to maintain our status as a REIT; possible adverse changes to tax laws; restrictions on our ability to engage in certain business activities; environmental uncertainties and risks related to natural disasters; losses in excess of our insurance coverage; changes in foreign laws and regulations, including those related to taxation and real estate ownership and operation; and changes in local, state and federal regulatory requirements, including changes in real estate and zoning laws and increases in real property tax rates. For a further list and description of such risks and uncertainties, see the reports and other filings by the company with the U.S. Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended December 31, 2016, and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2017, June 30, 2017 and September 30, 2017. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
View original content:http://www.prnewswire.com/news-releases/digital-realty-announces-tax-treatment-of-2017-dividends-300588508.html
SOURCE Digital Realty
