Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

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Stockholders' Equity
 9 Months Ended
Sep. 30, 2013
Equity [Abstract]  
Stockholders' Equity

8. Stockholders’ Equity

The following table summarizes the changes in our stockholders’ equity for the nine months ended September 30, 2013 (in thousands):

 

     Preferred
Stock		      Senior
Common
Stock		      Common
Stock		      Capital in
Excess of
Par Value		      Notes
Receivable
from
Employees		     Distributions
in Excess of
Accumulated
Earnings		     Total
Stockholders’
Equity		  

Balance at December 31, 2012

    $ 2       $ —         $ 11       $ 215,470       $ (410 )    $ (92,708 )    $ 122,365   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Issuance of senior common stock and common stock, net

      —           —           3         58,689         —          —          58,692   

Repayment of principal on employee notes receivable

      —           —           —           —           35        —          35   

Distributions declared to common, senior common and preferred stockholders

      —           —           —           —           —          (17,429 )      (17,429 ) 

Net income

      —           —           —           —           —          1,194        1,194   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Balance at September 30, 2013

    $ 2       $ —         $ 14       $ 274,159       $ (375 )    $ (108,943 )    $ 164,857   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

 

Distributions

Our Board of Directors declared the following distributions per share for the three and nine months ended September 30, 2013 and 2012:

 

     For the three months ended September 30,      For the nine months ended September 30,  
     2013      2012      2013      2012  

Common Stock

    $ 0.375       $ 0.375       $ 1.125       $ 1.125   

Senior Common Stock

      0.2625         0.2625         0.7875         0.7875   

Series A Preferred Stock

      0.4843749         0.4843749         1.4531247         1.4531247   

Series B Preferred Stock

      0.46875         0.46875         1.4063         1.4063   

Series C Preferred Stock (1)

      0.4453125         0.4453125         1.3359         1.1875   

 

(1)  The Series C Preferred Stock was issued on January 31, 2012.

Recent Activity

On April 29, 2013, we completed a public offering of 1,265,000 shares of our common stock at a public offering price of $18.90 per share. Gross proceeds of the offering totaled $23.9 million and net proceeds, after deducting offering expenses borne by us, were $22.6 million, which we used to acquire real estate.

On June 24, 2013, we completed a public offering of 1,320,000 shares of our common stock at a public offering price of $18.82 per share. On July 11, 2013, the underwriters partially exercised their option to purchase an additional 158,000 shares of common stock. Gross proceeds of the offering were $27.8 million and net proceeds, after deducting offering expenses borne by us, were $26.3 million, which we used to acquire real estate.

Ongoing Activity

We have an open market sale agreement, or the ATM Program, with Jefferies LLC, or Jefferies, under which we may, from time to time, offer to sell shares of our common stock with an aggregate sales price of up to $25.0 million on the open market through Jefferies, as agent, or to Jefferies, as principal. During the nine months ended September 30, 2013, we raised approximately $7.8 million in gross proceeds under the ATM Program. As of September 30, 2013, we had sold a total of 762,478 shares with aggregate gross proceeds of $14.0 million, and have a remaining capacity to sell up to $11.0 million of common stock under the ATM Program with Jefferies.

In March 2011, we commenced an offering of an aggregate of 3,500,000 shares of our senior common stock, par value $0.001 per share, at a price to the public of $15.00 per share, of which 3,000,000 shares are intended to be offered pursuant to the primary offering and 500,000 shares are intended to be offered pursuant to our senior common distribution reinvestment plan, or the DRIP. We, however, reserve the right to reallocate the number of shares being offered between the primary offering and the DRIP. As of September 30, 2013, we have sold 331,830 shares of senior common stock in this ongoing offering, for gross proceeds of $4.1 million, and issued an additional 6,741 shares of senior common stock under the DRIP program.

 

Notes to Employees

The following table is a summary of the outstanding note issued to an employee of the Adviser for the exercise of stock options (dollars in thousands):

 

Date Issued

    Outstanding Balance
of Employee Loan at
September 30, 2013		      Outstanding Balance
of Employee Loans at
December 31, 2012		      Maturity Date
of Note		      Interest Rate
on Note		  

Nov 2006

    $ 375       $ 410         Nov 2015         8.15 % 
  

 

 

     

 

 

        

In accordance with ASC 505-10-45-2, “Equity,” receivables from employees for the issuance of capital stock to employees prior to the receipt of cash payment should be reflected in the balance sheet as a reduction to stockholders’ equity. Therefore, this note was recorded as a full recourse loan to the employee and is included in the equity section of the accompanying condensed consolidated balance sheets. As of September 30, 2013, this loan maintained its full recourse status.