SHAREHOLDERS' EQUITY

Preferred Stock

The Company declared dividends of $0.53125 for the period January 16, 2013 through April 15, 2013 on its 8.50% Series A Cumulative Redeemable Preferred Stock.

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,
	2013		2012
Balance as of beginning of period	54,268,915		40,382,530
Common stock issued under DRIP	298,304		3,932
Common stock issued under ATM program	180,986		402,494
Common stock issued via secondary offering	—		13,332,748
Common stock issued or redeemed under stock and incentive plans	139,600		216,663
Common stock forfeited for tax withholding on share-based compensation	(52,385	)	—
Balance as of end of period	54,835,420		54,338,367

The Company has approximately 7,416,520 shares of common stock that remain available to offer and sell through its sales agent, JMP Securities LLC, under its "at the market", or "ATM" program, as of March 31, 2013. The Company received proceeds of $1,956, net of $30 in broker sales commissions, for the common shares issued under this program during the three months ended March 31, 2013.

The Company's Dividend Reinvestment and Share Purchase Plan ("DRIP") 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. A total of 3,000,000 shares have been reserved for issuance under the DRIP, and there are 2,688,216 shares remaining for issuance as of March 31, 2013. The Company declared a first quarter common stock dividend of $0.29 per share payable on April 30, 2013 to shareholders of record as of April 1, 2013. There was no discount for shares purchased through the DRIP during the first quarter of 2013.

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, SARs, dividend equivalent rights, performance shares, incentive awards, and restricted stock units. Of the 2,500,000 shares of common stock authorized for issuance under this plan, 1,665,676 shares remain available for issuance as of March 31, 2013. Total stock-based compensation expense recognized by the Company for the three months ended March 31, 2013 was $489 compared to $453 for the three months ended March 31, 2012.

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



	Three Months Ended
	March 31,
	2013		2012
Restricted stock outstanding as of beginning of period	448,283		365,506
Restricted stock granted	139,600		200,821
Restricted stock vested	(153,720	)	(109,293	)
Restricted stock outstanding as of end of period	434,163		457,034

The restricted stock granted during the three months ended March 31, 2013 and March 31, 2012 had fair values of $1,491 and $1,891, respectively at their grant dates. As of March 31, 2013, the fair value of the Company’s outstanding restricted stock remaining to be amortized into compensation expense is $4,018, of which $1,634 is expected to be amortized in the remaining nine months of 2013, $1,313 in 2014, $890 in 2015, and $181 in 2016.

As of March 31, 2013, the Company also has SARs and stock options outstanding, all of which were granted pursuant to the Company's 2004 Stock Incentive Plan. No new awards may be granted under this plan. As of March 31, 2013, all of the Company's outstanding SARs are vested and exercisable at any time prior to their expiration date of December 31, 2013. As of March 31, 2013 and December 31, 2012, the fair value of the Company’s outstanding SARs of $90 and $66, respectively, are recorded as liabilities on its consolidated balance sheet for the respective periods. The following table presents a rollforward of the SARs activity for the periods indicated:



	Three Months Ended
	March 31,
	2013				2012
	Quantity		Weighted-Average Price		Quantity	Weighted-Average Price
SARs outstanding as of beginning of period	27,500		$	7.06	59,375	$	6.87
SARs exercised	(2,500	)	7.06		—	—
SARs outstanding as of end of period	25,000		$	7.06	59,375	$	6.87

The Company has 15,000 unexercised stock options outstanding as of March 31, 2013 that will expire if not exercised by May 16, 2013. These options are exercisable at an exercise price of $9.81. The compensation cost related to all stock options has been expensed in prior periods.

Additional Paid-In Capital

The following table presents a rollforward of the Company's changes in additional paid-in capital for the periods indicated:



	Three Months Ended
	March 31,
	2013			2012
Balance as of beginning of period	$	759,214		$	634,683
Common stock issuances:
DRIP issuances	3,224			37
ATM issuances	1,954			3,674
Secondary offering	—			119,859
Adjustments related to tax withholding for share-based compensation	(545		)	—
Amortization of restricted stock, net of additional grants	455			369
Capitalized expenses	(30		)	(119		)
Balance as of end of period	$	764,272		$	758,503

Accumulated Other Comprehensive Income

Accumulated other comprehensive income as of March 31, 2013 and December 31, 2012 is comprised of the following items:



	March 31, 2013			December 31, 2012
Available for sale investments:
Unrealized gains	$	112,641		$	104,870
Unrealized losses	(15,888		)	(12,623		)
	96,753			92,247
Hedging instruments:
Unrealized losses	(35,196		)	(39,736		)
Accumulated other comprehensive income	$	61,557		$	52,511

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