Shareholders' Equity

12 Months Ended

Dec. 31, 2016

Stockholders Equity Note [Abstract]

Shareholders' Equity

Note 12. Shareholders’ Equity

Preferred Stock

The Company’s 7.25% Series B Cumulative Redeemable Preferred Stock (“Series B Preferred Stock”) has a liquidation preference of $25.00 per share, has no stated maturity, is not convertible into any other security of the Company, and is redeemable at the Company’s option beginning May 22, 2017 at a price of $25.00 per share plus accrued and unpaid distributions. In addition, the Company had an at-the-market equity program, which expired on May 29, 2015, under which the Company could offer and sell, from time-to-time, shares of its Series B Preferred Stock. There were no transactions during 2015 under this program.

Common Stock

On August 1, 2016, the Company entered into a forward sales agreement to issue 5,750,000 common shares for estimated net proceeds of $44.2 million, before adjustments for dividends paid and other administrative costs incurred prior to settlement. To date, there have been no physical settlements regarding this offering. The Company expects to physically settle the agreement in full prior to its expiration on August 1, 2017. The Company does have the option to net settle this agreement in shares or cash prior to its expiration, but does not expect to utilize this option.

On January 12, 2015, the Company concluded a public offering of 5,750,000 shares of its common stock (including 750,000 shares relating to the exercise of an over-allotment option by the underwriters), and realized net proceeds, after offering expenses, of approximately $41.9 million.

The Company had an at-the-market offering program, which expired on May 29, 2015, under which it could offer and sell, from time-to-time, shares of its common stock. Prior to the expiration of this program, no shares were sold in 2015.

The Company has a Dividend Reinvestment and Direct Stock Purchase Plan (“DRIP”) which offers a convenient method for shareholders to invest cash dividends and/or make optional cash payments to purchase shares of the Company’s common stock. Such purchases are at 100% of market value. There were no significant transactions under the DRIP during 2016 and 2015. At December 31, 2016, there remained 2,841,000 shares authorized under the DRIP.

OP Units

Certain noncontrolling interests of the Company had been classified in the mezzanine section of the balance sheet (the “mezzanine OP Units”) as such OP Units had not met the requirements for equity classification (the holders of such OP Units had, under the federal securities laws, demand registration rights of the Company’s common stock upon conversion of such OP Units). Such registration rights expired on April 25, 2015 and, accordingly, such OP Units now meet the requirements for equity classification. There were no significant OP Unit redemptions during 2016 and 2015.

During 2015, holders of 40,000 OP Units converted their holdings to shares of the Company’s common stock.

Dividends

The following table provides a summary of dividends declared and paid per share:

	Years ended December 31,
	2016		2015		2014
Common stock	$	0.200	$	0.200	$	0.200
7.250% Series B Preferred Stock	$	1.812	$	1.812	$	1.812

At December 31, 2016 and 2015, there were $1.6 million and $1.6 million, respectively, of accrued preferred stock dividends.

On January 17, 2017, the Company’s Board of Directors declared a dividend of $0.05 per share with respect to its common stock. At the same time, the Board declared a dividend of $0.453125 per share with respect to the Company’s Series B Preferred Stock. The distributions are payable on February 21, 2017 to shareholders of record on February 10, 2017.