NONCONTROLLING INTEREST OF UNITHOLDERS IN OPERATING PARTNERSHIP

3 Months Ended

Mar. 31, 2020

NONCONTROLLING INTEREST OF UNITHOLDERS IN OPERATING PARTNERSHIP

NONCONTROLLING INTEREST OF UNITHOLDERS IN OPERATING PARTNERSHIP

NOTE 9 – NONCONTROLLING INTEREST OF UNITHOLDERS IN OPERATING PARTNERSHIP

As of March 31, 2020 and December 31, 2019, outstanding limited partnership units totaled 18,251,000 and 17,811,000 respectively. Total aggregate distributions per unit were $0.2647 and $0.2613 during the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020 and 2019, the operating partnership declared first quarter distributions of $4,831 and $4,661 respectively, to limited partners paid on April 15, 2020 and 2019, respectively. 

During the three months ended March 31, 2020 and 2019, 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, or (ii) 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.