NONCONTROLLING INTEREST OF UNITHOLDERS IN OPERATING PARTNERSHIP

3 Months Ended

Mar. 31, 2018

NONCONTROLLING INTEREST OF UNITHOLDERS IN OPERATING PARTNERSHIP

NONCONTROLLING INTEREST OF UNITHOLDERS IN OPERATING PARTNERSHIP

NOTE 10 – NONCONTROLLING INTEREST OF UNITHOLDERS IN OPERATING PARTNERSHIP

As of March 31, 2018 and December 31, 2017, outstanding limited partnership units totaled 17,582,000 and 17,517,000 respectively. As of March 31, 2018 and 2017, the operating partnership declared distributions of $4,473 and $4,232 respectively, to limited partners paid on April 16, 2018 and April 15, 2017, respectively.  Distributions per unit were $0.254375 and $0.2475 during the three months ended March 31, 2018 and 2017, respectively.

During the three months ended March 31, 2018 and 2017, there were no limited partnership units exchanged for common shares pursuant to redemption requests. 

At the sole and absolute discretion of the limited partnership, and so long our redemption plans exists and applicable holding periods are met,Limited Partners may request the operating partnership redeem their limited partnership units.  The operating partnership may choose to offer the Limited Partner: (i) cash for the redemption or, at the request of the Limited Partner, (2) offer shares in lieu of cash for the redemption on a basis of one limited partnership unit for one Sterling common share (the “Exchange Request”).  The Exchange Request shall be exercised pursuant to a Notice of Exchange.  If the issuance of Sterling common shares pursuant to an Exchange Request will cause the shareholder to exceed the ownership limitations, among other reasons, payment will be made to the Limited Partner in cash.  No Limited Partner may exercise an Exchange Request more than twice during any calendar year, and Exchange Requests may not be made for less than 1,000 limited partnership units.  If a Limited Partner owns fewer than 1,000 limited partnership units, all of the limited partnership units held by the Limited Partner must be exchanged pursuant to the Exchange Request.