Cash Distributions

On April 28, 2020, the Board a declared cash distributions for the month of May 2020, at a rate based on 366 days in the calendar year, of $0.000956284 per day ($0.35 per share annualized), subject to adjustments for class-specific expenses, per Class E share, Class T share, Class S share, Class D share, Class I share, Class A share, Class AA share and Class AAA share of common stock, for stockholders of record at the close of each business day for the period commencing on May 1, 2020 and ending on May 31, 2020. The Company will pay such distributions to each stockholder of record at such time in June 2020 as determined by the Registrant’s Chief Executive Office.

On May 1, 2020, the Company paid a cash distribution for the month of April 2020, at a rate based on 366 days in the calendar year, of $0.000956284 per day ($0.35 per share annualized), subject to adjustments for class-specific expenses, per Class E share, Class T share, Class S share, Class D share, Class I share, Class A share, Class AA share and Class AAA share of common stock, for stockholders of record at the close of each business day for the period commencing on April 1, 2020 and ending on April 30, 2020.

COVID -19

Subsequent to March 31, 2020, the global and U.S. economies continue to be severely impacted by the outbreak of COVID-19. The consequences of the outbreak and its impact on the economy continue to evolve and the full extent of the impact is uncertain as of the date of this filing. The extent to which the COVID-19 outbreak impacts the Company’s results will depend on future developments that are highly uncertain and cannot be predicted, including new information that may emerge concerning the severity of COVID-19 and the actions taken to contain it or treat its impact.

In recent months, the Company has taken certain affirmative steps which the Company believes helps to position the Company in a manner that will assist the Company in withstanding the current uncertainty relating to the COVID-19 outbreak, including the following:


•	Proactively communicating with the Company's tenants and property managers to ensure lines of communication remain open related to operations and safety protocols prior to and related to decisions to return to work in accordance with various jurisdictional guidelines;


•	Monitoring the near-term solvency and liquidity of the Company's tenants and the extent to which COVID-19 may impact their business;


•	Regularly communicating with KeyBank regarding availability under the Company's Revolving Credit Facility, which affords the Company with substantial current liquidity;


•	Entering into a series of interest rate swaps, effectively fixing our rate on $325 million of term debt at a rate sufficiently below the Company's weighted average interest rate;


•	Switching distribution declarations from a quarterly basis to a monthly basis in order to maintain maximum flexibility to monitor and evaluate the situation related to the financial impact of COVID-19;


•	Revising the Company's distribution rate to equal an annualized rate of $0.35 per share, subject to adjustments for class-specific expenses;


•	Continuing to closely monitor the Company's cash flow projections and actively updating its projections based upon current information, as well as testing for future contingencies;


•	Adding seven unencumbered assets to the Company's revolver pool to increase liquidity by an additional $200 million and, in April 2020, withdrawing $125 million from the Company's Revolving Credit Facility for potential upcoming capital expenditure requirements and to provide the Company with a flexible conservative cash management strategy; and


•	Continuing to evaluate a potential strategic transaction, as well as monitoring market opportunities that could enhance our long-term value and performance.

The Company is currently working with certain tenants that have requested rent relief due to the impact of the COVID-19 outbreak to determine appropriate lease concessions. To date, no lease concessions have been granted. On April 10, 2020, the FASB issued a Staff Q&A to respond to some frequently asked questions about accounting for lease concessions related to the effects of the outbreak of COVID-19. Consequently, for concessions related to the effects of the COVID-19 outbreak, an entity will not have to analyze each contract to determine whether enforceable rights and obligations for concessions exist in the contract and can elect to apply or not apply the lease modification guidance to those contracts. Entities may make the elections for any lessor-provided concessions related to the effects of the COVID-19 outbreak (e.g., deferrals of lease payments, cash payments made to the lessee, reduced future lease payments) as long as the concession does not result in a substantial increase in the rights of the lessor or the obligations of the lessee. The Company will continue to evaluate the impact of lease concessions and the appropriate accounting for those concessions. See “Item 1A. Risk Factors” within “Part II - Other Information” of this quarterly report on Form 10-Q for a discussion about risks that COVID-19 directly or indirectly may pose to the Company's business.