Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

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Stockholders' Equity
 6 Months Ended
Jun. 30, 2014
Equity [Abstract]  
Stockholders' Equity

9. Stockholders’ Equity

The following table summarizes the changes in our stockholders’ equity for the six months ended June 30, 2014 (dollars in thousands):

 

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

Balance at December 31, 2013

    $ 2       $ —         $ 16       $ 298,751       $ (375 )    $ (115,248 )    $ 183,146   

Issuance of senior common stock and common stock, net

      —           —           2         34,099         —          —          34,101   

Distributions declared to common, senior common and preferred stockholders

      —           —           —           —           —          (14,400 )      (14,400 ) 

Net loss

      —           —           —           —           —          (12,297 )      (12,297 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Balance at June 30, 2014

    $ 2       $ —         $ 18       $ 332,850       $ (375 )    $ (141,945 )    $ 190,550   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Distributions

Our Board of Directors declared the following distributions per share for the three and six months ended June 30, 2014 and 2013:

 

     For the three months ended June 30,      For the six months ended June 30,  
     2014      2013      2014      2013  

Common Stock

    $ 0.38       $ 0.38       $ 0.75       $ 0.75   

Senior Common Stock

      0.26         0.26         0.53         0.53   

Series A Preferred Stock

      0.4843749         0.4843749         0.9687498         0.9687498   

Series B Preferred Stock

      0.4688         0.4688         0.9375         0.9375   

Series C Preferred Stock

      0.4453         0.4453         0.8906         0.8906   

Recent Activity

On June 6, 2014, we completed a public offering of 1,610,000 shares of our common stock at a public offering price of $17.00 per share. Gross proceeds of the offering totaled $27.4 million and net proceeds, after deducting offering expenses borne by us, were $26.0 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 six months ended June 30, 2014, we raised approximately $7.6 million in net proceeds under the ATM Program. As of June 30, 2014, under the existing program, we have sold a total of 1.2 million shares with aggregate gross proceeds of $21.8 million, and have a remaining capacity to sell up to $3.2 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 June 30, 2014, we had sold 369,553 shares of senior common stock in this ongoing offering, for gross proceeds of $5.5 million, and issued an additional 15,008 shares of senior common stock under the DRIP program, and have a remaining capacity to sell up to $47.0 million of senior common stock.

Note to Employee

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

 

Date Issued

    Outstanding Balance
of Employee Loan at
June 30, 2014		      Outstanding Balance
of Employee Loan at
December 31, 2013		      Maturity Date
of Note		    Interest Rate
on Note		  

Nov 2006

    $ 375       $ 375       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 June 30, 2014, this loan maintained its full recourse status.