Derivative Instruments

6 Months Ended

Jun. 30, 2014

Derivative Instruments

14. Derivative Instruments

As of June 30, 2014 and December 31, 2013, we had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (in thousands):

Notional Amount								Fair Value at Significant Other Observable Inputs (Level 2)
As of June 30, 2014		As of December 31, 2013		Type of Derivative	Strike Rate	Effective Date	Expiration Date	As of June 30, 2014	As of December 31, 2013
Currently-paying contracts
$    410,905	(1)	$    410,905	(1)	Swap	0.717	Various	Various	$         (1,080)	$              (76)
152,013	(2)	150,040	(2)	Swap	0.925	Jul. 17, 2012	Apr. 18, 2017	(376)	131
562,918		560,945						(1,456)	55
Forward-starting contracts
150,000	(3)	-		Forward-starting Swap	2.091	Jul. 15, 2014	Jul. 15, 2019	(2,871)	-
Total
$    712,918		$    560,945						$         (4,327)	$              55

(1) Represents the U.S. dollar tranche of the unsecured term loan.

(2) Represents a portion of the Singapore dollar tranche of the unsecured term loan. Translation to U.S. dollars is based on exchange rate of $0.80 to 1.00 SGD as of June 30, 2014 and $0.79 to 1.00 SGD as of December 31, 2013.

(3) In January 2014, we entered into a forward-starting swap agreement with a notional amount of USD $150.0 million for a future debt issuance with a tenor of five years or greater, which initially was expected to occur on July 15, 2014.  The forward-starting swap has a mandatory early termination date of January 15, 2015 to cash settle the swap.

As of June 30, 2014, we estimate that an additional $5.8 million will be reclassified as an increase to interest expense during the twelve months ending June 30, 2015, when the hedged forecasted transactions impact earnings.

Digital Realty Trust, L.P. [Member]

Derivative Instruments

14. Derivative Instruments

As of June 30, 2014 and December 31, 2013, we had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (in thousands):

Notional Amount								Fair Value at Significant Other Observable Inputs (Level 2)
As of June 30, 2014		As of December 31, 2013		Type of Derivative	Strike Rate	Effective Date	Expiration Date	As of June 30, 2014	As of December 31, 2013
Currently-paying contracts
$    410,905	(1)	$    410,905	(1)	Swap	0.717	Various	Various	$         (1,080)	$              (76)
152,013	(2)	150,040	(2)	Swap	0.925	Jul. 17, 2012	Apr. 18, 2017	(376)	131
562,918		560,945						(1,456)	55
Forward-starting contracts
150,000	(3)	-		Forward-starting Swap	2.091	Jul. 15, 2014	Jul. 15, 2019	(2,871)	-
Total
$    712,918		$    560,945						$         (4,327)	$              55

(1) Represents the U.S. dollar tranche of the unsecured term loan.

(2) Represents a portion of the Singapore dollar tranche of the unsecured term loan. Translation to U.S. dollars is based on exchange rate of $0.80 to 1.00 SGD as of June 30, 2014 and $0.79 to 1.00 SGD as of December 31, 2013.

(3) In January 2014, we entered into a forward-starting swap agreement with a notional amount of USD $150.0 million for a future debt issuance with a tenor of five years or greater, which initially was expected to occur on July 15, 2014.  The forward-starting swap has a mandatory early termination date of January 15, 2015 to cash settle the swap.

As of June 30, 2014, we estimate that an additional $5.8 million will be reclassified as an increase to interest expense during the twelve months ending June 30, 2015, when the hedged forecasted transactions impact earnings.