Stockholders' Equity

6 Months Ended

Jun. 30, 2013

Stockholders' Equity

Stockholders' Equity

8. Stockholders' Equity

Common Stock

        For the six months ended June 30, 2013, the Company issued 51.5 million shares of common stock in connection with the Total Primary Offering, generating gross proceeds of $512.8 million. For the year ended December 31, 2012, the Company issued 43.4 million shares of common stock pursuant to its Total Primary Offering, generating gross proceeds of $433.0 million. From inception through the completion of the Total Primary Offering on July 1, 2013, the Company issued 107.6 million shares of common stock, generating gross proceeds from the Total Primary Offering of $1,072.9 million.

Distribution Reinvestment Plan

        The Company adopted a DRP through which common stockholders may elect to reinvest an amount equal to the distributions declared on their shares in additional shares of the Company's common stock in lieu of receiving cash distributions. The initial purchase price per share pursuant to the DRP is $9.50. Once the Company establishes an estimated value per share, shares issued pursuant to the DRP will be priced at 95.0% of the estimated value per share of the Company's common stock, as determined by the Advisor or another firm chosen for that purpose. The Company expects to establish an estimated value per share within 18 months after the completion of its offering stage which ended on July 1, 2013. No selling commissions or dealer manager fees are paid on shares issued pursuant to the DRP. The board of directors of the Company may amend or terminate the DRP for any reason upon ten-days' notice to participants.

        For the six months ended June 30, 2013, the Company issued 1.3 million shares totaling $12.5 million of proceeds pursuant to the DRP. For the year ended December 31, 2012, the Company issued 1.1 million shares totaling $10.3 million of proceeds pursuant to the DRP. From inception through the completion of the Total Primary Offering, the Company issued 2.9 million shares totaling $27.4 million of proceeds pursuant to the DRP. In April 2013, the board of directors of the Company authorized the reallocation of shares available pursuant to the DRP to the Primary Offering. On July 1, 2013, the Company completed the Total Primary Offering and all of the shares initially registered were issued. The Company intends to continue to offer shares pursuant to the DRP beyond the Total Primary Offering. As a result, the Company filed a registration statement with the SEC to issue an additional 15.0 million shares pursuant to the DRP, which was declared effective on July 3, 2013 (refer to Note 13).

Distributions

        Distributions to stockholders are declared quarterly by the board of directors of the Company and are paid monthly based on a daily amount of $0.002185792 per share, which is equivalent to an annual distribution rate of 8.0%. The following table presents distributions declared for the six months ended June 30, 2013 (dollars in thousands):

	Distributions(1)
Period	Cash		DRP		Total
January	$	2,441	$	1,795	$	4,236
February		2,378		1,778		4,156
March		2,909		2,163		5,072
April		3,173		2,352		5,525
May		3,620		2,751		6,371
June		3,901		3,067		6,968

(1)

Represents distributions declared for such period, even though such distributions are actually paid to stockholders the month following such period.

Share Repurchase Program

        The Company adopted a share repurchase program that may enable stockholders to sell their shares to the Company in limited circumstances (the "Share Repurchase Program"). The Company may not repurchase shares unless a stockholder has held shares for one year. However, the Company may repurchase shares held less than one year in connection with a stockholder's death or qualifying disability, if the disability is deemed qualifying by the board of directors of the Company, in its sole discretion, and after receiving written notice from the stockholder or the stockholder's estate. The Company is not obligated to repurchase shares under the Share Repurchase Program. For the six months ended June 30, 2013, the Company repurchased 0.3 million shares of common stock for a total of $2.7 million at an average price of $9.50 per share. For the year ended December 31, 2012, the Company repurchased 0.1 million shares of common stock for a total of $1.4 million at an average price of $9.69 per share. The Company may amend or terminate the Share Repurchase Program at its discretion at any time, subject to certain notice requirements.