SUMMARIZED CONDENSED CONSOLIDATING INFORMATION (Tables)

6 Months Ended

Jun. 30, 2013

SUMMARIZED CONDENSED CONSOLIDATING INFORMATION [Abstract]

Schedule of Condensed Balance Sheet

CONDENSED CONSOLIDATING BALANCE SHEET

June 30, 2013

(dollars in thousands, except per share amounts)

(unaudited)

	Parent Company			Issuers		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Elimination			Consolidated
Assets
Real estate investments, net of accumulated depreciation	$	126		$	—	$	649,820	$	167,282	$	—		$	817,228
Loans receivable and other investments, net	—			—		43,069		—		—			43,069
Cash and cash equivalents	91,208			—		—		1,562		—			92,770
Restricted cash	—			—		471		5,266		—			5,737
Deferred tax assets	24,212			—		—		—		—			24,212
Prepaid expenses, deferred financing costs and other assets	776			9,460		24,428		4,419		—			39,083
Intercompany	—			284,676		—		36,871		(321,547		)	—
Investment in subsidiaries	367,799			492,335		25,346		—		(885,480		)	—
Total assets	$	484,121		$	786,471	$	743,134	$	215,400	$	(1,207,027	)	$	1,022,099
Liabilities and stockholders’ equity
Mortgage notes	$	—		$	—	$	—	$	143,129	$	—		$	143,129
Senior unsecured notes	—			414,672		—		—		—			414,672
Accounts payable and accrued liabilities	4,560			4,000		5,158		801		—			14,519
Tax liability	24,212			—		—		—		—			24,212
Intercompany	29,782			—		291,765		—		(321,547		)	—
Total liabilities	58,554			418,672		296,923		143,930		(321,547		)	596,532
Stockholders’ equity:
Preferred stock, $.01 par value; 10,000,000 shares authorized, 5,750,000 shares issued and outstanding as of June 30, 2013	58			—		—		—		—			58
Common stock, $.01 par value; 125,000,000 shares authorized, 37,333,943 shares issued and outstanding as of June 30, 2013	373			—		—		—		—			373
Additional paid-in capital	493,479			292,579		324,329		51,225		(668,133		)	493,479
Cumulative distributions in excess of net income	(68,343		)	75,220		121,882		20,245		(217,347		)	(68,343		)
Total stockholders’ equity	425,567			367,799		446,211		71,470		(885,480		)	425,567
Total liabilities and stockholders’ equity	$	484,121		$	786,471	$	743,134	$	215,400	$	(1,207,027	)	$	1,022,099

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2012

(dollars in thousands, except per share amounts)

	Parent Company			Issuers		Combined Guarantor Subsidiaries		Combined  Non- Guarantor Subsidiaries		Elimination			Consolidated
Assets
Real estate investments, net of accumulated depreciation	$	151		$	—	$	655,881	$	171,103	$	—		$	827,135
Loans receivable, net	—			—		12,017		—					12,017
Cash and cash equivalents	15,075			—		—		2,026		—			17,101
Restricted cash	—			—		92		4,497		—			4,589
Deferred tax assets	24,212			—		—		—		—			24,212
Assets held for sale, net	—			—		—		2,215		—			2,215
Prepaid expenses, deferred financing costs and other assets	1,315			7,339		18,133		2,826		—			29,613
Intercompany	—			227,396		—		37,466		(264,862		)	—
Investment in subsidiaries	351,632			451,975		23,142		—		(826,749		)	—
Total assets	$	392,385		$	686,710	$	709,265	$	220,133	$	(1,091,611	)	$	916,882
Liabilities and stockholders’ equity
Mortgage notes	$	—		$	—	$	—	$	152,322	$	—		$	152,322
Secured revolving credit facility	—			—		92,500		—					92,500
Senior unsecured notes	—			330,666		—		—		—			330,666
Accounts payable and accrued liabilities	3,281			4,412		3,348		653		—			11,694
Tax liability	24,212			—		—		—		—			24,212
Intercompany	59,404			—		205,458		—		(264,862		)	—
Total liabilities	86,897			335,078		301,306		152,975		(264,862		)	611,394
Stockholders’ equity:
Preferred stock, $.01 par value; 10,000,000 shares authorized, zero shares issued and outstanding as of December 31, 2012	—			—		—		—		—			—
Common stock, $.01 par value; 125,000,000 shares authorized, 37,099,209 shares issued and outstanding as of December 31, 2012	371			—		—		—		—			371
Additional paid-in capital	353,861			292,939		321,666		53,952		(668,557		)	353,861
Cumulative distributions in excess of net income	(48,744		)	58,693		86,293		13,206		(158,192		)	(48,744		)
Total stockholders’ equity	305,488			351,632		407,959		67,158		(826,749		)	305,488
Total liabilities and stockholders’ equity	$	392,385		$	686,710	$	709,265	$	220,133	$	(1,091,611	)	$	916,882

Schedule of Condensed Income Statement

CONDENSED CONSOLIDATING STATEMENT OF (LOSS) INCOME

For the Three Months EndedJune 30, 2013

(dollars in thousands, except per share amounts)

(unaudited)

	Parent Company				Issuers			Combined Guarantor Subsidiaries				Combined  Non- Guarantor Subsidiaries		Elimination			Consolidated
Revenues:
Rental income	$	—			$	—		$	24,219			$	7,299	$	—		$	31,518
Interest and other income	16				—			741				—		—			757
Total revenues	16				—			24,960				7,299		—			32,275
Expenses:
Depreciation and amortization	13				—			6,302				1,907		—			8,222
Interest	—				7,722			639				1,782		—			10,143
General and administrative	3,091				2			299				30		—			3,422
Total expenses	3,104				7,724			7,240				3,719		—			21,787
Other income (expense):
Loss on extinguishment of debt	—				(9,750		)	—				—		—			(9,750		)
Other income (expense)	—				—			(1,400		)		—		—			(1,400		)
Total other income (expense)	—				(9,750		)	(1,400		)		—		—			(11,150		)
Income in subsidiary	2,426				19,900			930				—		(23,256		)	—
Net (loss) income	(662		)		2,426			17,250				3,580		(23,256		)	(662		)
Preferred dividends	(2,523		)		—			—				—		—			(2,523		)
Net (loss) income attributable to common stockholders	$	(3,185	)	—	$	2,426		$	17,250		—	$	3,580	$	(23,256	)	$	(3,185	)
Net (loss) income attributable to common stockholders, per:
Basic common share																	$	(0.09	)
Diluted common share																	$	(0.09	)
Weighted-average number of common shares outstanding, basic																	37,357,112
Weighted-average number of common shares outstanding, diluted																	37,357,112

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Three Months EndedJune 30, 2012

(dollars in thousands, except per share amounts)

(unaudited)

	Parent Company		Issuers		Combined Guarantor Subsidiaries			Combined  Non- Guarantor Subsidiaries			Elimination			Consolidated
Revenues:
Rental income	$	—	$	—	$	18,372		$	6,448		$	—		$	24,820
Interest and other income	1		—		296			—			—			297
Total revenues	1		—		18,668			6,448			—			25,117
Expenses:
Depreciation and amortization	12		—		5,492			2,053			—			7,557
Interest	—		4,757		715			2,426			—			7,898
General and administrative	3,083		1		376			29			—			3,489
Total expenses	3,095		4,758		6,583			4,508			—			18,944
Other income (expense):
Loss on extinguishment of debt	—		—		—			(250		)	—			(250		)
Total other income (expense)	—		—		—			(250		)	—			(250		)
Income (loss) in subsidiary	9,017		13,775		(55		)	—			(22,737		)	—
Net income attributable to common stockholders	$	5,923	$	9,017	$	12,030		$	1,690		$	(22,737	)	$	5,923
Net income attributable to common stockholders, per:
Basic common share														$	0.16
Diluted common share														$	0.16
Weighted-average number of common shares outstanding, basic														37,147,942
Weighted-average number of common shares outstanding, diluted														37,191,687

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Six Months EndedJune 30, 2013

(dollars in thousands, except per share amounts)

(unaudited)

	Parent Company				Issuers			Combined Guarantor Subsidiaries				Combined  Non- Guarantor Subsidiaries		Elimination			Consolidated
Revenues:
Rental income	$	—			$	—		$	48,353			$	14,640	$	—		$	62,993
Interest and other income	69				—			1,235				—		—			1,304
Total revenues	69				—			49,588				14,640		—			64,297
Expenses:
Depreciation and amortization	25				—			12,617				3,826		—			16,468
Interest	—				14,438			1,979				3,728		—			20,145
General and administrative	7,675				4			412				48		—			8,139
Total expenses	7,700				14,442			15,008				7,602		—			44,752
Other income (expense):
Loss on extinguishment of debt	—				(9,750		)	—				—		—			(9,750		)
Other income (expense)	—				—			(900		)		—		—			(900		)
Total other income (expense)	—				(9,750		)	(900		)		—		—			(10,650		)
Income in subsidiary	16,526				40,718			1,909				—		(59,153		)	—
Net income	8,895				16,526			35,589				7,038		(59,153		)	8,895
Preferred dividends	(2,827		)		—			—				—		—			(2,827		)
Net income attributable to common stockholders	$	6,068		—	$	16,526		$	35,589		—	$	7,038	$	(59,153	)	$	6,068
Net income attributable to common stockholders, per:
Basic common share																	$	0.16
Diluted common share																	$	0.16
Weighted-average number of common shares outstanding, basic																	37,321,813
Weighted-average number of common shares outstanding, diluted																	37,789,804

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Six Months EndedJune 30, 2012

(dollars in thousands, except per share amounts)

(unaudited)

	Parent Company		Issuers		Combined Guarantor Subsidiaries		Combined  Non- Guarantor Subsidiaries			Elimination			Consolidated
Revenues:
Rental income	$	—	$	—	$	35,586	$	12,897		$	—		$	48,483
Interest and other income	7		—		354		—			—			361
Total revenues	7		—		35,940		12,897			—			48,844
Expenses:
Depreciation and amortization	24		—		10,724		4,112			—			14,860
Interest	—		9,514		1,178		4,904			—			15,596
General and administrative	6,920		2		839		49			—			7,810
Total expenses	6,944		9,516		12,741		9,065			—			38,266
Other income (expense):
Loss on extinguishment of debt	—		—		—		(250		)	—			(250		)
Total other income (expense)	—		—		—		(250		)	—			(250		)
Income in subsidiary	17,265		26,781		147		—			(44,193		)	—
Net income attributable to common stockholders	$	10,328	$	17,265	$	23,346	$	3,582		$	(44,193	)	$	10,328
Net income attributable to common stockholders, per:
Basic common share													$	0.28
Diluted common share													$	0.28
Weighted-average number of common shares outstanding, basic													37,092,683
Weighted-average number of common shares outstanding, diluted													37,119,005

Schedule of Condensed Cash Flow Statement

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended June 30, 2013

(in thousands)

(unaudited)

	Parent Company			Issuers			Combined Guarantor Subsidiaries			Combined  Non- Guarantor Subsidiaries				Elimination			Consolidated
Net cash provided by operating activities	$	12,200		$	—		$	—		$	10,786			$	—		$	22,986
Cash flows from investing activities:
Acquisitions of real estate	—			—			(6,175		)	—				—			(6,175		)
Origination of note receivable	—			—			(25,244		)	—				—			(25,244		)
Preferred equity investment	—			—			(5,144		)	—				—			(5,144		)
Additions to real estate	—			—			(226		)	—				—			(226		)
Net proceeds from the sale of real estate	—			—			—			2,208				—			2,208
Distribution from Subsidiary	1,920			1,920			—			—				(3,840		)	—
Intercompany financing	(46,072		)	(127,163		)	—			—				173,235			—
Net cash (used in) provided by investing activities	(44,152		)	(125,243		)	(36,789		)	2,208				169,395			(34,581		)
Cash flows from financing activities:
Proceeds from issuance of senior unsecured notes	—			200,000			—			—			—	—			200,000
Principal payments on senior unsecured notes	—			(113,750		)	—			—				—			(113,750		)
Payments on secured revolving credit facility	—			—			(92,500		)	—				—			(92,500		)
Principal payments on mortgage notes	—			—			—			(9,193		)		—			(9,193		)
Payments of deferred financing costs	—			(5,159		)	(82		)	(137		)		—			(5,378		)
Issuance of preferred stock	138,345			—			—			—				—			138,345
Issuance of common stock	(2,851		)	—			—			—				—			(2,851		)
Dividends paid on common and preferred stock	(27,409		)	—			—			—				—			(27,409		)
Distribution to Parent	—			(1,920		)	—			(1,920		)		3,840			—
Intercompany financing	—			46,072			129,371			(2,208		)		(173,235		)	—
Net cash provided by (used in) financing activities	108,085			125,243			36,789			(13,458		)		(169,395		)	87,264
Net increase (decrease) in cash and cash equivalents	76,133			—			—			(464		)		—			75,669
Cash and cash equivalents, beginning of period	15,075			—			—			2,026				—			17,101
Cash and cash equivalents, end of period	$	91,208		$	—		$	—		$	1,562			$	—		$	92,770

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended June 30, 2012

(in thousands)

(unaudited)

	Parent Company			Issuers			Combined Guarantor Subsidiaries			Combined  Non- Guarantor Subsidiaries			Elimination			Consolidated
Net cash provided by operating activities	$	22,525		$	—		$	—		$	1,562		$	—		$	24,087
Cash flows from investing activities:
Acquisitions of real estate	—			—			(55,550		)	—			—			(55,550		)
Origination of note receivable	—			—			(21,176		)	—			—			(21,176		)
Additions to real estate	—			—			(730		)	—			—			(730		)
Investment in Subsidiary	(1,449		)	(1,449		)	—			—			2,898			—
Distribution from Subsidiary	345			345			—			—			(690		)	—
Intercompany financing	(37,255		)	(37,255		)	—			—			74,510			—
Net cash used in investing activities	(38,359		)	(38,359		)	(77,456		)	—			76,718			(77,456		)
Cash flows from financing activities:
Proceeds from secured revolving credit facility	—			—			42,500			—			—			42,500
Proceeds from mortgage notes	—			—			—			21,947			—			21,947
Principal payments on mortgage notes	—			—			—			(22,464		)	—			(22,464		)
Payments of deferred financing costs	—			—			(2,299		)	(1,136		)	—			(3,435		)
Issuance of common stock	144			—			—			—			—			144
Dividends paid	(24,463		)	—			—			—			—			(24,463		)
Contribution from Parent	—			1,449			—			1,449			(2,898		)	—
Distribution to Parent	—			(345		)	—			(345		)	690			—
Intercompany financing	—			37,255			37,255			—			(74,510		)	—
Net cash (used in) provided by financing activities	(24,319		)	38,359			77,456			(549		)	(76,718		)	14,229
Net (decrease) increase in cash and cash equivalents	(40,153		)	—			—			1,013			—			(39,140		)
Cash and cash equivalents, beginning of period	41,736			—			—			514			—			42,250
Cash and cash equivalents, end of period	$	1,583		$	—		$	—		$	1,527		$	—		$	3,110