Distributions (unaudited)

12 Months Ended

Dec. 31, 2018

Distributions [Abstract]

Distributions

Note 11 – Distributions (unaudited)

The Company must distribute at least 90% of its taxable income in order to continue to maintain our qualification as a REIT. This distribution requirement can be satisfied by current year distributions or, to a certain extent, by distributions in the following year.

For federal income tax purposes, distributions to stockholders are treated as ordinary income, return of capital or a combination thereof. The federal income tax classification of the per share common stock distributions are as follows:

	Year Ended December 31,
	2018		2017		2016
Ordinary taxable distributions	$	0.29	$	0.66	$	0.22
Return of capital		0.34		0.18		0.70
Total	$	0.63	$	0.84	$	0.92

Pursuant to Section 857(b)(9) of the Code, dividend distributions made to stockholders on January 14, 2016 with a record date of December 31, 2015 are deemed to have been received by stockholders of record on December 31, 2015. Based on earnings and profits for the taxable year 2015, the Company’s aggregate cash distributions exceeded its earnings and profits for the taxable year 2015. Therefore, a portion of the January 14, 2016 cash distribution was treated as a 2016 distribution for federal income tax purposes and were included as taxable income to the recipient in 2016.