SHAREHOLDERS' EQUITY

Common Stock

The following table presents a summary of the changes in the number of common shares outstanding for the periods indicated:



	Three Months Ended
	March 31,
	2012	2011
Balance at beginning of period	40,382,530	30,342,897
Common stock issued under ATM program	402,494	409,237
Common stock issued under DRIP	3,932	—
Common stock issued via public offering	13,332,748	9,200,000
Common stock issued under 2009 Stock and Incentive Plan	216,663	356,025
Balance at end of period	54,338,367	40,308,159

The Company has a continuous equity placement program (also known as an "at the market" program, or "ATM") whereby the Company may offer and sell through its sales agent, JMP Securities LLC, up to 8,000,000 shares of its common stock. During the three months ended March 31, 2012, the Company received proceeds of $3,721, net of $56.7 in broker sales commission, for 402,494 shares of common stock sold under this program at an average price of $9.39.

The Company has a Dividend Reinvestment and Share Purchase Plan ("DRIP") which allows registered shareholders to automatically reinvest some or all of their quarterly dividends in shares of the Company’s stock and provides an opportunity for investors to purchase shares of the Company’s stock, potentially at a discount to the prevailing market price. The Company declared a first quarter common stock dividend of $0.28 per share payable on April 30, 2012 to shareholders of record as of April 5, 2012; however there is no Dividend Reinvestment Discount for first quarter dividends reinvested through the DRIP.

During the three months ended March 31, 2012, the Company closed a secondary offering of 13,332,748 shares of its common stock which includes 832,487 shares issued pursuant to an option to purchase additional shares that was exercised by the underwriters, at a public offering price of $9.12 per share for total net proceeds of approximately $119,992 after deduction of underwriters' compensation and estimated expenses.

Incentive Plans. Pursuant to the Company’s 2009 Stock and Incentive Plan, the Company may grant stock-based compensation to eligible employees, directors or consultants or advisers to the Company, including stock awards, stock options, stock appreciation rights, dividend equivalent rights, performance shares, and restricted stock units. Of the 2,500,000 shares of common stock authorized for issuance under this plan, 1,825,276 shares remain available for issuance as of March 31, 2012.

The following table presents a rollforward of the restricted stock activity for the periods presented:



	Three Months Ended
	March 31,
	2012		2011
Restricted stock at beginning of period	365,506		25,000
Restricted stock granted	200,821		303,000
Restricted stock vested	(109,293	)	(7,500	)
Restricted stock outstanding at end of period	457,034		320,500

As of March 31, 2012, the fair value of the Company’s outstanding restricted stock remaining to be amortized into compensation expense is $4,154.

As of March 31, 2012, the Company has 59,375 SARs outstanding, all of which are vested and exercisable at a weighted average price of $6.87 . The weighted average remaining contractual term on these outstanding SARs as of March 31, 2012 is 16 months, and 25,000 of the outstanding SARs are set to expire if they are not exercised on or before December 31, 2012. No SARs were granted, forfeited, or exercised during the three months ended March 31, 2012 or March 31, 2011. As of March 31, 2012 and December 31, 2011, the fair value of the Company’s outstanding SARs of $159 and $77, respectively, are recorded as liabilities on its consolidated balance sheet for the respective periods.

Total stock-based compensation expense recognized by the Company for the three months ended March 31, 2012 and March 31, 2011 was $453 and $95, respectively.

Additional Paid-In Capital

The following table presents a rollforward of the Company's changes in additional paid-in capital for the three months ended March 31, 2012:



	Additional Paid-In Capital
Balance as of January 1, 2012	$	634,683
Common stock issuances:
DRIP issuances	37
ATM issuances	3,674
Secondary offering	119,859
Incentive plans	147
Amortization of restricted stock	371
Capitalized expenses	(119		)
Balance as of March 31, 2012	$	758,652

Accumulated Other Comprehensive Income

Accumulated other comprehensive income as of March 31, 2012 and December 31, 2011 is comprised of the following items:



	March 31, 2012			December 31, 2011
Available for sale investments:
Unrealized gains	$	58,170		$	36,091
Unrealized losses	(9,981		)	(13,902		)
	48,189			22,189
Hedging instruments:
Unrealized gains	89			—
Unrealized losses	(25,354		)	(25,444		)
	(25,265		)	(25,444		)
Accumulated other comprehensive (loss) income	$	22,924		$	(3,255	)

Due to the Company’s REIT status, the items comprising other comprehensive income do not have related tax effects.