SHAREHOLDERS' EQUITY

Preferred Stock

The Company declared its regular quarterly dividend of $0.53125 per share on its 8.50% Series A Cumulative Redeemable Preferred Stock for the second quarter of 2013.

During the second quarter of 2013, the Company closed an offering of 2,250,000 shares of 7.625% Series B Cumulative Redeemable Preferred Stock, par value of $0.01 per share and liquidation preference $25.00 per share, which includes 250,000 shares issued pursuant to an option to purchase additional shares that was exercised by the underwriters. The Company received net proceeds before expenses of $54,478, including the additional proceeds from the underwriters' partial exercise of the overallotment option. The Company declared dividends of $0.46068 per share for the period April 19, 2013 to, but not including, July 15, 2013 on its Series B 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:



	Six Months Ended
	June 30,
	2013		2012
Balance as of beginning of period	54,268,915		40,382,530
Common stock issued under DRIP	505,718		6,947
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	270,158		241,663
Common stock forfeited for tax withholding on share-based compensation	(52,385	)	—
Balance as of end of period	55,173,392		54,366,382

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 June 30, 2013. The Company did not issue any common shares under this program during the three months ended June 30, 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 were reserved for issuance under the DRIP, and there are 2,476,437 shares remaining for issuance as of June 30, 2013. The Company declared a second quarter common stock dividend of $0.29 per share payable on July 31, 2013 to shareholders of record as of June 28, 2013. There was no discount for shares purchased through the DRIP during the second 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, 1,550,118 shares remain available for issuance as of June 30, 2013. Total stock-based compensation expense recognized by the Company for the three and six months ended June 30, 2013 was $625 and $1,115, respectively, compared to $468 and $920, respectively, for the three and six months ended June 30, 2012.

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



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Restricted stock outstanding as of beginning of period	434,163		457,034		448,283		365,506
Restricted stock granted	115,558		20,000		255,158		220,821
Restricted stock vested	(22,918	)	(22,917	)	(176,638	)	(132,210	)
Restricted stock outstanding as of end of period	526,803		454,117		526,803		454,117

The restricted stock granted during the three months ended June 30, 2013 and June 30, 2012 had fair values of $1,217 and $182, respectively, at their grant dates. As of June 30, 2013, the balance of the Company’s outstanding restricted stock remaining to be amortized into compensation expense is $4,591 of which $1,280 is expected to be amortized in the remaining six months of 2013, $1,643 in 2014, $1,155 in 2015, $447 in 2016, and $66 in 2017.

As of June 30, 2013, the Company also has 25,000 SARs outstanding which were granted pursuant to the Company's 2004 Stock Incentive Plan. No new awards may be granted under this plan. As of June 30, 2013, all of the Company's outstanding SARs are vested and exercisable at their exercise price of $7.06 per share any time prior to their expiration date of December 31, 2013. As of June 30, 2013 and December 31, 2012, the fair value of the Company’s outstanding SARs of $71 and $66, respectively, are recorded as liabilities on its consolidated balance sheet for the respective 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:



	Six Months Ended
	June 30,
	2013			2012
Balance as of beginning of period	$	759,214		$	634,683
Common stock issuances:
DRIP issuances	5,365			66
ATM issuances	1,954			3,674
Secondary offering	—			119,859
Incentive plans	147			192
Adjustments related to tax withholding for share-based compensation	(545		)	—
Amortization of restricted stock, net of additional grants	1,096			812
Capitalized expenses	(59		)	(119		)
Balance as of end of period	$	767,172		$	759,167

Accumulated Other Comprehensive Income

Accumulated other comprehensive income as of June 30, 2013 and December 31, 2012 is comprised of the following items:



	June 30, 2013			December 31, 2012
Available for sale investments:
Unrealized gains	$	50,839		$	104,869
Unrealized losses	(71,381		)	(12,623		)
	(20,542		)	92,246
Hedging instruments:
Unrealized gains	3,966			—
Unrealized losses	(18,524		)	(39,735		)
	(14,558		)	(39,735		)
Accumulated other comprehensive income	$	(35,100	)	$	52,511

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