SUMMARIZED CONDENSED CONSOLIDATING INFORMATION (Tables)

9 Months Ended

Sep. 30, 2013

SUMMARIZED CONDENSED CONSOLIDATING INFORMATION [Abstract]

Schedule of Condensed Balance Sheet

CONDENSED CONSOLIDATING BALANCE SHEET

September 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	$	113		$	—	$	643,753	$	165,405	$	—		$	809,271
Loans receivable and other investments, net	—			—		46,123		—		—			46,123
Cash and cash equivalents	95,887			—		—		754		—			96,641
Restricted cash	—			—		1,040		5,769		—			6,809
Deferred tax assets	24,212			—		—		—		—			24,212
Prepaid expenses, deferred financing costs and other assets	576			9,402		29,136		5,080		—			44,194
Intercompany	—			284,428		—		39,707		(324,135		)	—
Investment in subsidiaries	382,334			514,017		24,930		—		(921,281		)	—
Total assets	$	503,122		$	807,847	$	744,982	$	216,715	$	(1,245,416	)	$	1,027,250
Liabilities and stockholders’ equity
Mortgage notes	$	—		$	—	$	—	$	142,241	$	—		$	142,241
Senior unsecured notes	—			414,538		—		—		—			414,538
Accounts payable and accrued liabilities	5,222			10,975		6,060		812		—			23,069
Tax liability	24,212			—		—		—		—			24,212
Intercompany	50,498			—		273,637		—		(324,135		)	—
Total liabilities	79,932			425,513		279,697		143,053		(324,135		)	604,060
Stockholders’ equity:
Preferred stock, $.01 par value; 10,000,000 shares authorized, 5,750,000 shares issued and outstanding as of September 30, 2013	58			—		—		—		—			58
Common stock, $.01 par value; 125,000,000 shares authorized, 37,333,943 shares issued and outstanding as of September 30, 2013	373			—		—		—		—			373
Additional paid-in capital	494,802			292,296		324,101		49,772		(666,169		)	494,802
Cumulative distributions in excess of net income	(72,043		)	90,038		141,184		23,890		(255,112		)	(72,043		)
Total stockholders’ equity	423,190			382,334		465,285		73,662		(921,281		)	423,190
Total liabilities and stockholders’ equity	$	503,122		$	807,847	$	744,982	$	216,715	$	(1,245,416	)	$	1,027,250

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 INCOME

For the Three Months EndedSeptember 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	$	—			$	—	$	24,380			$	7,319	$	—		$	31,699
Interest and other income	13				—		1,214				—		—			1,227
Total revenues	13				—		25,594				7,319		—			32,926
Expenses:
Depreciation and amortization	13				—		6,365				1,880		—			8,258
Interest	—				7,147		817				1,775		—			9,739
General and administrative	2,996				—		41				20		—			3,057
Total expenses	3,009				7,147		7,223				3,675		—			21,054
Other income (expense):
Loss on extinguishment of debt	—				—		(351		)		—		—			(351		)
Other income (expense)	—				—		300				—		—			300
Total other income (expense)	—				—		(51		)		—		—			(51		)
Income in subsidiary	14,817				21,964		982				—		(37,763		)	—
Net income	11,821				14,817		19,302				3,644		(37,763		)	11,821
Preferred dividends	(2,579		)		—		—				—		—			(2,579		)
Net income attributable to common stockholders	$	9,242		—	$	14,817	$	19,302		—	$	3,644	$	(37,763	)	$	9,242
Net income attributable to common stockholders, per:
Basic common share																$	0.25
Diluted common share																$	0.24
Weighted-average number of common shares outstanding, basic																37,358,334
Weighted-average number of common shares outstanding, diluted																37,828,573

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Three Months EndedSeptember 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	$	—	$	—	$	18,972		$	6,448		$	—		$	25,420
Interest and other income	7		—		611			—			—			618
Total revenues	7		—		19,583			6,448			—			26,038
Expenses:
Depreciation and amortization	12		—		5,446			2,038			—			7,496
Interest	—		6,162		708			2,215			—			9,085
General and administrative	3,627		—		133			18			—			3,778
Total expenses	3,639		6,162		6,287			4,271			—			20,359
Other income (expense):
Loss on extinguishment of debt	—		—		—			(453		)	—			(453		)
Total other income (expense)	—		—		—			(453		)	—			(453		)
Income (loss) in subsidiary	8,858		15,020		(52		)	—			(23,826		)	—
Net income attributable to common stockholders	$	5,226	$	8,858	$	13,244		$	1,724		$	(23,826	)	$	5,226
Net income attributable to common stockholders, per:
Basic common share														$	0.14
Diluted common share														$	0.14
Weighted-average number of common shares outstanding, basic														37,178,162
Weighted-average number of common shares outstanding, diluted														37,465,114

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Nine Months EndedSeptember 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	$	—			$	—		$	72,733			$	21,959	$	—		$	94,692
Interest and other income	82				—			2,449				—		—			2,531
Total revenues	82				—			75,182				21,959		—			97,223
Expenses:
Depreciation and amortization	38				—			18,983				5,705		—			24,726
Interest	—				21,585			2,797				5,502		—			29,884
General and administrative	10,671				4			453				68		—			11,196
Total expenses	10,709				21,589			22,233				11,275		—			65,806
Other income (expense):
Loss on extinguishment of debt	—				(9,750		)	(351		)		—		—			(10,101		)
Other income (expense)	—				—			(600		)		—		—			(600		)
Total other income (expense)	—				(9,750		)	(951		)		—		—			(10,701		)
Income in subsidiary	31,343				62,682			2,892				—		(96,917		)	—
Net income	20,716				31,343			54,890				10,684		(96,917		)	20,716
Preferred dividends	(5,406		)		—			—				—		—			(5,406		)
Net income attributable to common stockholders	$	15,310		—	$	31,343		$	54,890		—	$	10,684	$	(96,917	)	$	15,310
Net income attributable to common stockholders, per:
Basic common share																	$	0.41
Diluted common share																	$	0.41
Weighted-average number of common shares outstanding, basic																	37,334,120
Weighted-average number of common shares outstanding, diluted																	37,777,458

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Nine Months EndedSeptember 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	$	—	$	—	$	54,558	$	19,345		$	—		$	73,903
Interest and other income	15		—		964		—			—			979
Total revenues	15		—		55,522		19,345			—			74,882
Expenses:
Depreciation and amortization	36		—		16,170		6,150			—			22,356
Interest	—		15,675		1,887		7,119			—			24,681
General and administrative	10,548		2		971		67			—			11,588
Total expenses	10,584		15,677		19,028		13,336			—			58,625
Other income (expense):
Loss on extinguishment of debt	—		—		—		(703		)	—			(703		)
Total other income (expense)	—		—		—		(703		)	—			(703		)
Income in subsidiary	26,123		41,800		94		—			(68,017		)	—
Net income attributable to common stockholders	$	15,554	$	26,123	$	36,588	$	5,306		$	(68,017	)	$	15,554
Net income attributable to common stockholders, per:
Basic common share													$	0.42
Diluted common share													$	0.42
Weighted-average number of common shares outstanding, basic													37,121,384
Weighted-average number of common shares outstanding, diluted													37,276,013

Schedule of Condensed Cash Flow Statement

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Nine Months Ended September 30, 2013

(in thousands)

(unaudited)

	Parent Company			Issuers			Combined Guarantor Subsidiaries			Combined  Non- Guarantor Subsidiaries				Elimination			Consolidated
Net cash provided by operating activities	$	36,878		$	—		$	—		$	12,333			$	—		$	49,211
Cash flows from investing activities:
Acquisitions of real estate	—			—			(6,175		)	—				—			(6,175		)
Origination of note receivable	—			—			(26,393		)	—				—			(26,393		)
Preferred equity investment	—			—			(6,624		)	—				—			(6,624		)
Additions to real estate	—			—			(388		)	—				—			(388		)
Net proceeds from the sale of real estate	—			—			—			2,208				—			2,208
Distribution from Subsidiary	3,345			3,345			—			—				(6,690		)	—
Intercompany financing	(52,041		)	(132,883		)	—			—				184,924			—
Net cash (used in) provided by investing activities	(48,696		)	(129,538		)	(39,580		)	2,208				178,234			(37,372		)
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	—			—			—			(10,081		)		—			(10,081		)
Payments of deferred financing costs	—			(5,408		)	(3,011		)	(179		)		—			(8,598		)
Issuance of preferred stock	138,257			—			—			—				—			138,257
Issuance of common stock	(2,950		)	—			—			—				—			(2,950		)
Dividends paid on common and preferred stock	(42,677		)	—			—			—				—			(42,677		)
Distribution to Parent	—			(3,345		)	—			(3,345		)		6,690			—
Intercompany financing	—			52,041			135,091			(2,208		)		(184,924		)	—
Net cash provided by (used in) financing activities	92,630			129,538			39,580			(15,813		)		(178,234		)	67,701
Net increase (decrease) in cash and cash equivalents	80,812			—			—			(1,272		)		—			79,540
Cash and cash equivalents, beginning of period	15,075			—			—			2,026				—			17,101
Cash and cash equivalents, end of period	$	95,887		$	—		$	—		$	754			$	—		$	96,641

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Nine Months Ended September 30, 2012

(in thousands)

(unaudited)

	Parent Company			Issuers			Combined Guarantor Subsidiaries			Combined  Non- Guarantor Subsidiaries			Elimination			Consolidated
Net cash provided by operating activities	$	44,798		$	—		$	—		$	3,104		$	—		$	47,902
Cash flows from investing activities:
Acquisitions of real estate	—			—			(98,050		)	—			—			(98,050		)
Origination of note receivable	—			—			(22,111		)	—			—			(22,111		)
Additions to real estate	(7		)	—			(1,032		)	—			—			(1,039		)
Investment in Subsidiary	(1,759		)	(1,759		)	—			—			3,518			—
Distribution from Subsidiary	345			345			—			—			(690		)	—
Intercompany financing	(20,764		)	(123,775		)	—			—			144,539			—
Net cash used in investing activities	(22,185		)	(125,189		)	(121,193		)	—			147,367			(121,200		)
Cash flows from financing activities:
Proceeds from issuance of senior unsecured notes	—			106,000			—			—			—			106,000
Proceeds from secured revolving credit facility	—			—			42,500			—			—			42,500
Proceeds from mortgage notes	—			—			—			35,829			—			35,829
Principal payments on secured revolving credit facility	—			—			(42,500		)	—			—			(42,500		)
Principal payments on mortgage notes	—			—			—			(36,701		)	—			(36,701		)
Payments of deferred financing costs	—			(2,989		)	(2,582		)	(1,474		)	—			(7,045		)
Issuance of common stock	144			—			—			—			—			144
Dividends paid	(36,702		)	—			—			—			—			(36,702		)
Contribution from Parent	—			1,759			—			1,759			(3,518		)	—
Distribution to Parent	—			(345		)	—			(345		)	690			—
Intercompany financing	—			20,764			123,775			—			(144,539		)	—
Net cash (used in) provided by financing activities	(36,558		)	125,189			121,193			(932		)	(147,367		)	61,525
Net (decrease) increase in cash and cash equivalents	(13,945		)	—			—			2,172			—			(11,773		)
Cash and cash equivalents, beginning of period	41,736			—			—			514			—			42,250
Cash and cash equivalents, end of period	$	27,791		$	—		$	—		$	2,686		$	—		$	30,477