Dividends and Equity Issuance Program

12 Months Ended

Dec. 31, 2016

Equity [Abstract]

Dividends and Equity Issuance Program

(6) DIVIDENDS AND EQUITY ISSUANCE PROGRAM

Dividends:

During each of the last three years, dividends were declared and paid by us as follows:

• 2016:    $2.60 per share of which $2.00 per share was ordinary income and $.60 per share was a return of capital distribution.

• 2015:    $2.56 per share of which $2.17 per share was ordinary income and $.39 per share was a return of capital distribution.

• 2014:    $2.52 per share of which $1.478 per share was ordinary income and $1.042 per share was total capital gain (total capital gain amount includes Unrecaptured Section 1250 gain of $.305 per share).

Equity Issuance Program:

During the second quarter of 2016, we recommenced our at-the-market (“ATM”) equity issuance program, pursuant to the terms of which we may sell, from time-to-time, common shares of our beneficial interest up to an aggregate sales price of approximately $23.3 million to or through Merrill Lynch, Pierce, Fenner and Smith, Incorporated (“Merrill Lynch”), as sales agent and/or principal. The common shares were offered pursuant to the Registration Statement filed with the Securities and Exchange Commission, which became effective during the fourth quarter of 2015.

Pursuant to the ATM Program, during the twelve months ended December 31, 2016, there were 249,016 shares issued at an average price of $55.30 per share (all of which were issued during the second quarter), which generated approximately $13.2 million of cash net proceeds (net of approximately $558,000, consisting of compensation of $344,000 to Merrill Lynch, as well as $214,000 of other various fees and expenses). As of December 31, 2016, we had approximately $9.5 million of gross proceeds still available for issuance under the program.  Since inception of this ATM program through December 31, 2016, we have issued 829,916 shares at an average price of $48.77 per share, which generated approximately $38.8 million of net proceeds (net of approximately $1.7 million, consisting of compensation of $1.0 million to Merrill Lynch as well as $680,000 of other various fees and expenses).  We have, and intend, to use the proceeds generated pursuant to the ATM program to reduce amounts outstanding under our revolving credit agreement.  After such repayment of debt, we may re-borrow funds under our revolving credit agreement for general operating purposes, including working capital, capital expenditures, acquisitions, dividend payments and the refinance of third-party debt.

There were no shares issued pursuant to an ATM program during 2015. During 2014, pursuant to an ATM equity issuance program in effect at that time, which is now expired, we issued 426,187 shares at an average price of $47.51 per share, which generated approximately $19.5 million of net proceeds, approximately $1.1 million of which were received in early January, 2015 (net of approximately $700,000, consisting of compensation of $506,000 to Merrill Lynch, as well as $195,000 of other various fees and expenses).