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Equity and Mezzanine Equity | 6 Months Ended
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Jun. 30, 2020
Equity [Abstract] |
Equity and Mezzanine Equity | Equity and Mezzanine Equity Stockholders’ Equity The following table summarizes the changes in our equity for the three and six months ended June 30, 2020 and 2019 (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
Series A and B Preferred Stock | 2020 | 2019 |  | 2020 | 2019
Balance, beginning of period | $ | — |  | $ | 2 |  |  | $ | — |  | $ | 2 |
Issuance of Series A and B preferred stock, net | — |  | — |  |  | — |  | — |
Balance, end of period | $ | — |  | $ | 2 |  |  | $ | — |  | $ | 2 |
Senior Common Stock |  |  |  |  |
Balance, beginning of period | $ | 1 |  | $ | 1 |  |  | $ | 1 |  | $ | 1 |
Issuance of senior common stock, net | — |  | — |  |  | — |  | — |
Balance, end of period | $ | 1 |  | $ | 1 |  |  | $ | 1 |  | $ | 1 |
Common Stock |  |  |  |  |
Balance, beginning of period | $ | 34 |  | $ | 30 |  |  | $ | 32 |  | $ | 29 |
Issuance of common stock, net | — |  | 1 |  |  | 2 |  | 2 |
Balance, end of period | $ | 34 |  | $ | 31 |  |  | $ | 34 |  | $ | 31 |
Additional Paid in Capital |  |  |  |  |
Balance, beginning of period | $ | 599,232 |  | $ | 573,868 |  |  | $ | 571,205 |  | $ | 559,977 |
Issuance of common stock, net | 508 |  | 19,135 |  |  | 28,438 |  | 33,246 |
Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership | 1 |  | (297 | ) |  | 98 |  | (517 | )
Balance, end of period | $ | 599,741 |  | $ | 592,706 |  |  | $ | 599,741 |  | $ | 592,706 |
Accumulated Other Comprehensive Income |  |  |  |  |
Balance, beginning of period | $ | (4,654 | ) | $ | (870 | ) |  | $ | (2,126 | ) | $ | (148 | )
Comprehensive income | (481 | ) | (989 | ) |  | (3,009 | ) | (1,711 | )
Balance, end of period | $ | (5,135 | ) | $ | (1,859 | ) |  | $ | (5,135 | ) | $ | (1,859 | )
Distributions in Excess of Accumulated Earnings |  |  |  |  |
Balance, beginning of period | $ | (374,259 | ) | $ | (319,402 | ) |  | $ | (360,978 | ) | $ | (310,117 | )
Distributions declared to common, senior common, and preferred stockholders | (15,634 | ) | (14,280 | ) |  | (31,184 | ) | (28,193 | )
Net income attributable to the Company | 993 |  | 2,221 |  |  | 3,262 |  | 6,849 |
Balance, end of period | $ | (388,900 | ) | $ | (331,461 | ) |  | $ | (388,900 | ) | $ | (331,461 | )
Total Stockholders' Equity |  |  |  |  |
Balance, beginning of period | $ | 220,354 |  | $ | 253,629 |  |  | $ | 208,134 |  | $ | 249,744 |
Issuance of common stock, net | 508 |  | 19,136 |  |  | 28,440 |  | 33,248 |
Distributions declared to common, senior common, and preferred stockholders | (15,634 | ) | (14,280 | ) |  | (31,184 | ) | (28,193 | )
Comprehensive income | (481 | ) | (989 | ) |  | (3,009 | ) | (1,711 | )
Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership | 1 |  | (297 | ) |  | 98 |  | (517 | )
Net income attributable to the Company | 993 |  | 2,221 |  |  | 3,262 |  | 6,849 |
Balance, end of period | $ | 205,741 |  | $ | 259,420 |  |  | $ | 205,741 |  | $ | 259,420 |
Non-Controlling Interest |  |  |  |  |
Balance, beginning of period | $ | 3,110 |  | $ | 4,662 |  |  | $ | 2,903 |  | $ | 4,675 |
Distributions declared to Non-controlling OP Unit holders | (189 | ) | (278 | ) |  | (378 | ) | (556 | )
Issuance of Non-controlling OP Units as consideration in real estate acquisitions, net | — |  | — |  |  | 502 |  | — |
Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership | (1 | ) | 297 |  |  | (98 | ) | 517 |
Net (loss) income (attributable) available to OP units held by Non-controlling OP Unitholders | (28 | ) | (16 | ) |  | (37 | ) | 29 |
Balance, end of period | $ | 2,892 |  | $ | 4,665 |  |  | $ | 2,892 |  | $ | 4,665 |
Total Equity | $ | 208,633 |  | $ | 264,085 |  |  | $ | 208,633 |  | $ | 264,085 |
Distributions We paid the following distributions per share for the three and six months ended June 30, 2020 and 2019:
|  | For the three months ended June 30, |  | For the six months ended June 30,
|  | 2020 |  | 2019 |  | 2020 |  | 2019
Common Stock and Non-controlling OP Units |  | $ | 0.37545 |  |  | $ | 0.37500 |  |  | $ | 0.75090 |  |  | $ | 0.75000 |
Senior Common Stock |  | 0.2625 |  |  | 0.2625 |  |  | 0.5250 |  |  | 0.5250 |
Series A Preferred Stock |  | — |  | (1) | 0.4843749 |  |  | — |  | (1) | 0.9687498 |
Series B Preferred Stock |  | — |  | (1) | 0.46875 |  |  | — |  | (1) | 0.9375 |
Series D Preferred Stock |  | 0.4374999 |  |  | 0.4374999 |  |  | 0.8749998 |  |  | 0.8749998 |
Series E Preferred Stock |  | 0.414063 |  |  | — |  |  | 0.8281260 |  |  | — |
Series F Preferred Stock |  | 0.375 |  | (2) | — |  |  | 0.375 |  | (2) | — |
(1) | We fully redeemed all outstanding shares of both Series A Preferred Stock and Series B Preferred Stock on October 28, 2019.
(2) | Series F Preferred Stock distributions were declared, but not paid, as there were no Series F Preferred Stock shares outstanding on the applicable dividend record dates.
Recent Activity Common Stock ATM Program During the six months ended June 30, 2020, we sold 1.3 million shares of common stock, raising $28.4 million in net proceeds under our At-the-Market Equity Offering Sales Agreements with sales agents Robert W. Baird & Co. Incorporated (“Baird”), Goldman Sachs & Co. LLC (“Goldman Sachs”), Stifel, Nicolaus & Company, Incorporated (“Stifel”), BTIG, LLC, and Fifth Third Securities, Inc. (“Fifth Third”), pursuant to which we may sell shares of our common stock in an aggregate offering price of up to $250.0 million (the “Common Stock ATM Program”). As of June 30, 2020, we had remaining capacity to sell up to $208.7 million of common stock under the Common Stock ATM Program. Mezzanine Equity Our 7.00% Series D Cumulative Redeemable Preferred Stock (“Series D Preferred Stock”) and 6.625% Series E Cumulative Redeemable Preferred Stock (“Series E Preferred Stock”) are classified as mezzanine equity on our condensed consolidated balance sheets because both are 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. In addition, our Series E Preferred Stock is redeemable at the option of the shareholder in the event a delisting event occurs. We will periodically evaluate the likelihood that a delisting event or change of control of greater than 50% will take place, and if we deem this probable, we would adjust the Series D Preferred Stock and Series E Preferred Stock 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%, or a delisting event, is remote. We have an At-the-Market Equity Offering Sales Agreement with sales agents Baird, Goldman Sachs, Stifel, Fifth Third, and U.S. Bancorp Investments, Inc., pursuant to which we may, from time to time, offer to sell shares of our Series E Preferred Stock in an aggregate offering price of up to $100.0 million. We sold 86,564 shares of our Series E Preferred Stock, raising $1.9 million in net proceeds under the agreement during the six months ended June 30, 2020. As of June 30, 2020, we had remaining capacity to sell up to $98.0 million of Series E Preferred Stock under the Series E Preferred Stock Sales Agreement. We do not have an active At-the-Market program for our Series D Preferred Stock. Universal Shelf Registration Statements On January 11, 2019, we filed a universal registration statement on Form S-3, File No. 333-229209, and an amendment thereto on Form S-3/A on January 24, 2019 (collectively referred to as the “2019 Universal Shelf”). The 2019 Universal Shelf became effective on February 13, 2019 and replaced our prior universal shelf registration statement. The 2019 Universal Shelf allows us to issue up to $500.0 million of securities. As of June 30, 2020, we had the ability to issue up to $407.2 million under the 2019 Universal Shelf. On January 29, 2020, we filed an additional universal registration statement on Form S-3, File No. 333-236143 (the “2020 Universal Shelf”). The 2020 Universal Shelf was declared effective on February 11, 2020 and is in addition to the 2019 Universal Shelf. The 2020 Universal Shelf allows us to issue up to an additional $800.0 million of securities. Of the $800.0 million of available capacity under our 2020 Universal Shelf, approximately $636.5 million is reserved for the sale of our Series F Preferred Stock. As of June 30, 2020, we had the ability to issue up to $800.0 million of securities under the 2020 universal shelf, as we have not sold any securities under the 2020 Universal Shelf. Series F Preferred Stock On February 20, 2020, the Company filed with the Maryland Department of Assessments and Taxation Articles Supplementary (i) setting forth the rights, preferences and terms of the Series F Preferred Stock and (ii) reclassifying and designating 26,000,000 shares of the Company’s authorized and unissued shares of common stock as shares of Series F Preferred Stock. The reclassification decreased the number of shares classified as common stock from 86,290,000 shares immediately prior to the reclassification to 60,290,000 shares immediately after the reclassification. Currently, there are no shares of the Series F Preferred Stock outstanding. Amendment to Operating Partnership Agreement In connection with the authorization of the Series F Preferred Stock in February of 2020, the Operating Partnership controlled by the Company through its ownership of GCLP Business Trust II, the general partner of the Operating Partnership, adopted the Second Amendment to its Second Amended and Restated Agreement of Limited Partnership, including Exhibit SFP thereto (collectively, the “Amendment”), as amended from time to time, establishing the rights, privileges and preferences of 6.00% Series F Cumulative Redeemable Preferred Units, a newly-designated class of limited partnership interests (the “Series F Preferred Units”). The Amendment provides for the Operating Partnership’s establishment and issuance of an equal number of Series F Preferred Units as are issued shares of Series F Preferred Stock by the Company in connection with the Offering upon the Company’s contribution to the Operating Partnership of the net proceeds of the Offering. Generally, the Series F Preferred Units provided for under the Amendment have preferences, distribution rights and other provisions substantially equivalent to those of the Series F Preferred Stock.

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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