Dividends

12 Months Ended

Dec. 31, 2021

dividends and distributions [Text Block]

Dividends and Distributions

The Company declares and pays monthly cash dividend distributions in the amount of $5.00 per share per month on its Series A Preferred Stock. Similarly, beginning in October 2019, the Company declares and pays monthly cash dividend distributions in the amount of $5.00 per share per month on its Series A1 Preferred Stock. For the Company's mShares Preferred Stock, dividends are paid on an escalating scale of $4.79 per month in the first year following share issuance, increasing each year to $6.25 per month in year eight and beyond. Similarly, beginning in October 2019, for the Company's Series M1 Preferred Stock, dividends are paid on an escalating scale of $5.08 per month in the first year following share issuance, increasing each year to $5.92 per month in year ten and beyond. All preferred stock dividends are prorated for partial months at issuance as necessary.

Given the nature of the escalating dividends associated with the Company’s mShares Preferred Stock and Series M1 Preferred Stock, the Company accrues dividends at the effective dividend rate in accordance with GAAP. This results in the Company recording larger dividends declared to preferred stockholders in the Company’s Consolidated Statements of Operations than dividends required to be paid for the first four years after issuance with respect to the mShares and the first five years after issuance with respect to the Series M1 Preferred Stock. Similarly, this will result in the Company recording smaller dividends declared to preferred stockholders in the Company’s Consolidated Statements of Operations than dividends required to be paid for the fifth through the eighth year after issuance with respect to the mShares and the sixth through the tenth year after issuance with respect to the Series M1 Preferred Stock. Following the escalation period (year eight for the mShares Preferred Stock and year ten for the Series M1 Preferred Stock), the dividends declared to preferred stockholders in the Company’s Consolidated Statements of Operations will equal the dividend paid.

The Company declared quarterly cash dividends on its Common Stock that totaled $0.7000, $0.7875 and $1.0475, per share for the years ended December 31, 2021, 2020, and 2019, respectively. The holders of Class A OP Units of the Operating Partnership are entitled to equivalent distributions as the dividends declared on the Common Stock. At December 31, 2021, the Company had 467,662 Class A OP Units outstanding, which are exchangeable on a one-for-one basis for shares of Common Stock or the equivalent amount of cash.

The Company's dividend and distribution activity consisted of:


	Dividends and distributions declared
(In thousands)	For the years ended December 31,
	2021		2020		2019

Series A Preferred Stock	$	132,843	$	149,943	$	108,950
mShares	5,757		6,408		4,807
Series A1 Preferred Stock	12,978		4,069		15
Series M1 Preferred Stock	1,826		488		—
PAC Operations REIT Preferred Stock	14		—		—
Common and Restricted Stock	37,143		38,868		46,755
Class A OP Units	357		593		908

Total	$	190,918	$	200,369	$	161,435

In conjunction with the call of 208,786 shares of its Series A Redeemable Preferred Stock during the year ended December 31, 2020 and 320,746 shares during the year ended December 31, 2021, the Company recorded deemed dividends to these shareholders of approximately $20.9 million and $32.1 million, respectively, that is included in the dividends declared to preferred stockholders line on the Consolidated Statements of Operations.