The Company’s charter authorizes the Company to issue 10 million shares of its $0.01 par value preferred stock. At June 30, 2019, no shares of preferred stock were issued or outstanding.

The Company’s charter authorizes the Company to issue 50,000 shares of its $0.01 par value convertible stock. On August 5, 2016, the Company's board of directors approved the issuance of 50,000 convertible shares in exchange of 5,000 shares of Class A common stock. At June 30, 2019, the Company had 50,000 shares of $0.01 par value convertible stock outstanding, which are owned by the Advisor. The convertible stock will convert into shares of the Company’s Class A common stock upon the occurrence of (a) the Company having paid distributions to common stockholders that in the aggregate equal 100% of the price at which the Company originally sold the shares plus an amount sufficient to produce a 6% cumulative, non-compounded annual return on the shares at that price; or (b) if the Company lists its common stock on a national securities exchange or the Company consummates a merger pursuant to which consideration received by the stockholders is securities of another issuer that are listed on a national securities exchange.

Each of these two events is a "Triggering Event." Upon a Triggering Event, the Company's convertible stock will, unless its advisory agreement has been terminated or not renewed on account of a material breach by its Advisor, generally be converted into a number of shares of common stock equal to 1/50,000 of the quotient of:

The Company’s charter authorizes the issuance of one billion shares of common stock with a par value of $0.01 per share, of which, the Company has allocated 750 million shares as Class R common stock, 75 million shares as Class I common stock, 25 million shares as Class A common stock and 25 million shares as Class T common stock. 125 million shares of the Company's $0.01 par value common stock remain undesignated. As of July 3, 2017, the Company ceased offering shares of Class A and Class T common stock and commenced the offering of Class R and Class I common stock in its primary offering.

Since inception through June 30, 2019, shares of the Company's $0.01 par value Class A, Class T, Class R, and Class I common stock have been issued as follows:

	Class A					Class T					Class R					Class I
	Shares Issued			Gross Proceeds		Shares Issued			Gross Proceeds		Shares Issued			Gross Proceeds		Shares Issued		Gross Proceeds
Shared issued through primary offering ⁽¹⁾		586,207		$	5,601,476		1,049,996		$	9,943,465		9,051,083		$	86,943,065		612,560	$	5,649,613
Shares issued through stock dividends		12,860			—		15,495			—		—			—		—		—
Shares issued through distribution reinvestment plan		26,085			244,121		64,618			586,806		244,080			2,219,124		1,702		15,418
Shares issued in conjunction with the Advisor's initial investment, net of 5,000 share conversion		15,000			200,000		—			—		—			—		—		—
Total		640,152		$	6,045,597		1,130,109		$	10,530,271		9,295,163		$	89,162,189		614,262	$	5,665,031
Shares redeemed and retired		(16,914	)				(30,695	)				(945	)				—
Total shares issued and outstanding at June 30, 2019		623,238					1,099,414					9,294,218					614,262

(1)Includes 222,222 of Class A shares issued to RAI.

During the six months ended June 30, 2019, the Company redeemed shares of its outstanding Class A and Class T common stock. During the six months ended June 30, 2019, there were no redemptions of Class R or Class I common stock. Redemptions for the six months ended June 30, 2019 were as follows:

	Class A				Class T
Period	Total Number of Shares Redeemed		Average Price Paid per Share		Total Number of Shares Redeemed		Average Price Paid per Share
January 2019		—		—		—		—
February 2019		—		—		—		—
March 2019		—		—		—		—
April 2019		—		—		—		—
May 2019		—		—		—		—
June 2019		16,914	$	8.66		28,087	$	8.61

		16,914				28,087

The Company will not redeem in excess of 5% of the weighted-average number of shares of common stock outstanding during the 12-month period immediately prior to the effective date of redemption. The Company's board of directors will determine at least quarterly whether it has sufficient excess cash to repurchase shares. Generally, the cash available for redemptions will be limited to proceeds from the Company's distribution reinvestment plan plus, if the Company has positive operating cash flow from the previous fiscal year, 1% of all operating cash flow from the previous year.

The Company's board of directors, in its sole discretion, may suspend, terminate or amend the Company's share redemption program without stockholder approval upon 30 days' notice if it determines that such suspension, termination or amendment is in the Company's best interest. The Company's board may also reduce the number of shares purchased under the share redemption program if it determines the funds otherwise available to fund the Company's share redemption program are needed for other purposes. These limitations apply to all redemptions, including redemptions sought upon a stockholder's death, qualifying disability or confinement to a long-term care facility.

During the three months ended June 30, 2019, the Company’s board of directors declared a cash distribution on the outstanding shares of all classes of its common stock based on daily record dates for the period from June 28, 2019 through September 27, 2019, which were or will be paid on July 31, 2019, August 30, 2019, and September 30, 2019.

The distribution was or will be calculated based on the stockholders of record each day during the period at a rate of (i) $0.001469178 per share per day, less (ii) the applicable daily distribution and shareholder servicing fees accrued for and allocable to any class of common stock divided by the number of shares of common stock of such class outstanding as of the close of business on the record date..

Distributions are generally paid to stockholders on the last business day of the month for which the distribution has accrued. Distributions reinvested pursuant to the distribution reinvestment plan are reinvested in shares of the same class as the shares on which distributions are made.

The following table presents information regarding the Company's distributions declared and paid to stockholders during the three and six months ended June 30, 2019:

	Three Months Ended June 30, 2019										Six Months Ended June 30, 2019
	Class A		Class T		Class R		Class I		Total		Class A		Class T		Class R		Class I		Total
Distributions declared	$	84,122	$	121,467	$	1,047,968	$	99,443	$	1,353,000	$	169,363	$	243,997	$	2,034,919	$	161,764	$	2,610,043

Distributions reinvested in shares of common stock paid	$	26,066	$	74,229	$	558,826	$	7,235	$	666,356	$	51,470	$	146,516	$	1,035,611	$	9,631	$	1,243,229
Cash distributions paid		59,019		48,096		418,723		70,168		596,007		115,178		92,942		764,725		115,985		1,088,830
Total distributions paid	$	85,085	$	122,325	$	977,549	$	77,403	$	1,262,363	$	166,648	$	239,459	$	1,800,336	$	125,616	$	2,332,059

At June 30, 2019, the Company had accrued approximately $1.3 million for the cash distributions paid or to be paid, in cash or DRIP shares, on July 31, 2019, August 30, 2019, and September 30, 2019, which is reported in distributions payable in the consolidated balance sheet.