Subsequent Events

3 Months Ended

Mar. 31, 2018

Subsequent Events [Abstract]

Subsequent Events

14. Subsequent Events

On April 5, 2018, the Company paid its regular quarterly cash dividend of $0.41 per common share and per unit in the Operating Partnership to stockholders and unit holders of record as of the close of business on March 22, 2018.

On April 16, 2018, the Company paid a quarterly cash dividend of $0.14844 per share on its 7.125% Series A Preferred Stock to holders of Series A Preferred Stock of record as of the close of business on March 15, 2018.

On April 24, 2018, the Company, through the Operating Partnership, and Quality Technology Services Holding, LLC, a wholly owned subsidiary of the Operating Partnership, entered into definitive agreements with General Datatech, L.P. (“GDT”), an international provider of managed IT solutions, pursuant to which the Company agreed to assign to GDT certain assets, contracts and liabilities associated with the Company’s cloud and managed services products in exchange for, among other things, certain cash payments and the payment by GDT of continuing channel fees to the Company based on revenue received under the assigned contracts and any new customers referred by the Company. These assets, contracts and liabilities primarily consist of customer contracts and certain physical equipment. The Company and its affiliates expect to complete the transfer of these assets, contracts and liabilities by the end of 2018. However, after August 31, 2018, the Company and its affiliates have no obligation to transfer any assets, contracts or liabilities that have not been transferred by such date, and it has not yet determined whether all of such assets, contracts or liabilities or only a portion thereof ultimately will be transferred. Under the agreements, the Company will transition certain cloud and managed services customer contracts and support to GDT, and GDT will expand its colocation presence within the Company’s facilities to support customers as they are migrated to GDT’s platform. The agreements fulfill part of the Company’s strategic growth plan announced in February 2018 – see Note 6 ‘Restructuring’ for additional details.