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Stockholders' and Mezzanine Equity | 9 Months Ended
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Sep. 30, 2017
Equity [Abstract] |
Stockholders' and Mezzanine Equity | Stockholders’ and Mezzanine Equity Stockholders’ Equity The following table summarizes the changes in our stockholders’ equity for the nine months ended September 30, 2017 (dollars in thousands):
|  | Shares Issued and Retired |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Series A and B Preferred Stock |  | Common Stock |  | Senior Common Stock |  | Series A and B Preferred Stock |  | Senior Common Stock |  | Common Stock |  | Additional Paid in Capital |  | Accumulated Other Comprehensive Income (1) |  | Distributions in Excess of Accumulated Earnings |  | Total Stockholders' Equity
Balance at December 31, 2016 |  | 2,264,000 |  |  | 24,882,758 |  |  | 959,552 |  |  | $ | 2 |  |  | $ | 1 |  |  | $ | 25 |  |  | $ | 463,436 |  |  | $ | — |  |  | $ | (223,587 | ) |  | $ | 239,877 |
Issuance of Series A and B preferred stock and common stock, net |  | — |  |  | 2,785,303 |  |  | — |  |  | — |  |  | — |  |  | 3 |  |  | 56,731 |  |  | — |  |  | — |  |  | 56,734 |
Conversion of senior common stock to common stock |  | — |  |  | 26,563 |  |  | (29,762 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Retirement of senior common stock, net |  | — |  |  | — |  |  | (1,598 | ) |  | — |  |  | — |  |  | — |  |  | (24 | ) |  | — |  |  | — |  |  | (24 | )
Distributions declared to common, senior common and preferred stockholders |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (37,130 | ) |  | (37,130 | )
Comprehensive income |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 172 |  |  | — |  |  | 172 |
Net income |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 7,403 |  |  | 7,403 |
Balance at September 30, 2017 |  | 2,264,000 |  |  | 27,694,624 |  |  | 928,192 |  |  | $ | 2 |  |  | $ | 1 |  |  | $ | 28 |  |  | $ | 520,143 |  |  | $ | 172 |  |  | $ | (253,314 | ) |  | $ | 267,032 |
(1) | The only element of comprehensive income recorded in the nine months ended September 30, 2017 relates to the fair value adjustment of $0.17 million related to our assumed interest rate swap described in Footnote 7 "Mortgage Notes Payable and Credit Facility," to these condensed consolidated financial statements.
Distributions We paid the following distributions per share for the three and nine months ended September 30, 2017 and 2016:
|  | For the three months ended September 30, |  | For the nine months ended September 30, |
|  | 2017 |  | 2016 |  | 2017 |  | 2016 |
Common Stock |  | $ | 0.375 |  |  | $ | 0.375 |  |  | $ | 1.125 |  |  | $ | 1.125 |  |
Senior Common Stock |  | 0.2625 |  |  | 0.2625 |  |  | 0.7875 |  |  | 0.7875 |  |
Series A Preferred Stock |  | 0.4843749 |  |  | 0.4843749 |  |  | 1.4531247 |  |  | 1.4531247 |  |
Series B Preferred Stock |  | 0.4688 |  |  | 0.4688 |  |  | 1.4063 |  |  | 1.4063 |  |
Series C Preferred Stock |  | — |  |  | 0.2424 |  | (1) | — |  |  | 1.1330 |  | (1)
Series D Preferred Stock |  | 0.4375 |  |  | 0.4375 |  |  | 1.3125 |  |  | 0.6163 |  |
(1) | We fully redeemed our Series C Preferred Stock on August 19, 2016.
Recent Activity Common Stock Offering In July 2017, we completed an overnight offering of 1.2 million shares of our common stock, at a public offering price of $20.52 per share. Net proceeds, after deducting underwriter discounts, were $22.7 million. The proceeds from this offering were used to acquire real estate, repay existing indebtedness, and for other general corporate purposes. The offering's underwriters exercised their overallotment option, purchasing an additional 0.2 million shares of our common stock at the public offering price of $20.52 per share. Net proceeds from exercise of the option to purchase additional shares, after deducting underwriter discounts, were $3.4 million. The proceeds from this overallotment were also used to acquire real estate, repay existing indebtedness, and for other general corporate purposes. Common Stock ATM Program In February 2016, we amended our common ATM program with Cantor Fitzgerald (the “Common Stock ATM Program”). The amendment increased the amount of shares of common stock that we may offer and sell through Cantor Fitzgerald, to $160.0 million. All other material terms of the Common Stock ATM program remained unchanged. During the nine months ended September 30, 2017, we sold 1.5 million shares of common stock, raising $30.8 million in net proceeds under the Common Stock ATM Program. As of September 30, 2017, we had a remaining capacity to sell up to $101.1 million of common stock under the Common Stock ATM Program. Series A and B Preferred Stock ATM Programs In February 2016, we entered into an open market sales agreement with Cantor Fitzgerald (the “Series A and B Preferred ATM Program”), pursuant to which we may, from time to time, offer to sell (i) shares of our 7.75% Series A Cumulative Redeemable Preferred Stock (“Series A Preferred”), and (ii) shares of our 7.50% Series B Cumulative Redeemable Preferred Stock (“Series B Preferred”), having an aggregate offering price of up to $40.0 million, through Cantor Fitzgerald, acting as sales agent and/or principal. We did not sell any shares of our Series A Preferred or Series B Preferred during the nine months ended September 30, 2017. As of September 30, 2017, we had a remaining capacity to sell up to $37.2 million of preferred stock under the Series A and B Preferred ATM Program. Mezzanine Equity The 7.00% Series D Cumulative Redeemable Preferred Stock (“Series D Preferred”), is classified as mezzanine equity in our condensed consolidated balance sheet because it is redeemable at the option of the shareholder upon a change of control of greater than 50% in accordance with ASC 480-10-S99 “Distinguishing Liabilities from Equity,” which requires mezzanine equity classification for preferred stock issuances with redemption features which are outside of the control of the issuer. A change in control of our company, outside of our control, is only possible if a tender offer is accepted by over 90% of our shareholders. All other change in control situations would require input from our Board of Directors. We will periodically evaluate the likelihood that a change of control greater than 50% will take place, and if we deem this probable, we would adjust the Series D Preferred presented in mezzanine equity to their redemption value, with the offset to gain (loss) on extinguishment. We currently believe the likelihood of a change of control greater than 50% is remote. In June 2016, we entered into an open market sales agreement with Cantor Fitzgerald (the “Series D Preferred ATM Program”), pursuant to which we may, from time to time, offer to sell shares of our Series D Preferred, having an aggregate offering price of up to $50.0 million, through Cantor Fitzgerald, acting as sales agent and/or principal. During the nine months ended September 30, 2017, we sold approximately 0.4 million shares of our Series D Preferred for net proceeds of $11.2 million. As of September 30, 2017, we had a remaining capacity to sell up to $22.3 million of Series D Preferred under the Series D Preferred ATM Program. Amendment to Articles of Incorporation On January 11, 2017, we filed with the Maryland State Department of Assessments and Taxation an Articles Supplementary reclassifying the remaining 160,000 authorized but unissued shares of our Series C Preferred Stock, as authorized but unissued shares of our common stock, and made a corresponding amendment to the Operating Partnership’s Partnership Agreement with regard to corresponding units of partnership interest. As a result of the reclassification, there are zero authorized shares of Series C Preferred Stock and zero authorized corresponding units of partnership interest remaining. On the same date, we filed with the Maryland State Department of Assessments and Taxation an Articles of Restatement, restating and integrating into a single instrument all prior Articles Supplementary and amendments thereto.

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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