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Shareholders' Equity
 12 Months Ended
Dec. 31, 2015
Shareholders' Equity [Abstract]  
Shareholders' Equity

 

Note 12. Shareholders’ Equity

 

Preferred Stock

 

The Company’s 7.25% Series B Cumulative Redeemable Preferred Stock (“Series B Preferred Stock”) has a liquidation preference of $25.00 per share, has no stated maturity, is not convertible into any other security of the Company, and is redeemable at the Company’s option beginning May 22, 2017 at a price of $25.00 per share plus accrued and unpaid distributions. In addition, the Company had an at-the-market equity program, which expired on May 29, 2015, under which the Company could offer and sell, from time-to-time, shares of its Series B Preferred Stock. There were no transactions during 2015 and 2014 under this program.

 

Common Stock

 

On January 12, 2015, the Company concluded a public offering of 5,750,000 shares of its common stock (including 750,000 shares relating to the exercise of an over-allotment option by the underwriters), and realized net proceeds, after offering expenses, of approximately $41.9 million.

 

On January 13, 2014, the Company concluded a public offering of 6,900,000 shares of its common stock (including 900,000 shares relating to the exercise of an over-allotment option by the underwriters), and realized net proceeds, after offering expenses, of approximately $41.3 million.

 

The Company had an at-the-market offering program, which expired on May 29, 2015, under which it could offer and sell, from time-to-time, shares of its common stock. Prior to the expiration of this program, no shares were sold in 2015 and 2014.

 

The Company has a Dividend Reinvestment and Direct Stock Purchase Plan (“DRIP”) which offers a convenient method for shareholders to invest cash dividends and/or make optional cash payments to purchase shares of the Company’s common stock. Such purchases are at 100% of market value. There were no significant transactions under the DRIP during 2015 and 2014. At December 31, 2015, there remained 2,847,000 shares authorized under the DRIP.

 

OP Units

 

Certain noncontrolling interests of the Company had been classified in the mezzanine section of the balance sheet (the “mezzanine OP Units”) as such OP Units had not met the requirements for equity classification (the holders of such OP Units had, under the federal securities laws, demand registration rights of the Company’s common stock upon conversion of such OP Units). Such registration rights expired on April 25, 2015 and, accordingly, such OP Units now meet the requirements for equity classification.

 

During 2014, the Company redeemed 69,000 OP Units from one of its executive officers for a total cash outlay of $424,000, based on the market value of the Company’s common stock. There were no other significant OP Unit redemptions during 2015 and 2014.

 

During 2015 and 2014, holders of 40,000 and 51,000 OP Units, respectively, converted their holdings to shares of the Company’s common stock.

Dividends

 

The following table provides a summary of dividends declared and paid per share:

 

 

 

 

 

 

 

 

 

Years ended December 31,

 

2015

 

2014

 

2013

Common stock

$                   0.200

 

$                   0.200

 

$                   0.200

7.250% Series B Preferred Stock

$                   1.812

 

$                   1.812

 

$                   1.812

At December 31, 2015 and 2014, there were $1.6 million and $1.6 million, respectively, of accrued preferred stock dividends.

 

On January 25, 2016, the Company’s Board of Directors declared a dividend of $0.05 per share with respect to its common stock. At the same time, the Board declared a dividend of $0.453125 per share with respect to the Company’s Series B Preferred Stock. The distributions are payable on February 22, 2016 to shareholders of record on February 12, 2016.