9. Subsequent Events

On July 10, 2012, our Board of Directors declared the following monthly distributions:

On July 24, 2012, through a wholly-owned subsidiary, we borrowed $9.8 million pursuant to a long-term note payable from American National Insurance Company, which is collateralized by a security interest in one of our properties. The note accrues interest at a rate of 5.6% per year and we may not repay this note during the first five years of the term; however, we may repay the note during the last five years of the term but we would be subject to a substantial prepayment penalty. The note has a maturity date of August 1, 2022. We intend to use the proceeds from the note for future acquisitions and working capital.

On July 31, 2012, through a wholly-owned subsidiary, we borrowed $3.0 million pursuant to a long-term note payable from Farmers Citizen Bank, which is collateralized by a security interest in one of our properties. The note accrues interest at a rate of 5.0% per year and we may not repay this note prior to the last five years of the term, or we would be subject to a substantial prepayment penalty. The note has a maturity date of July 31, 2022. We intend to use the proceeds from the note for future acquisitions and working capital.