Quarterly report pursuant to Section 13 or 15(d)

Equity

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Equity
 9 Months Ended
Sep. 30, 2016
Equity [Abstract]  
EQUITY
EQUITY
Stockholders’ Equity
As of September 30, 2016, there were 18,000,000 shares of common stock, par value $0.001 per share, authorized, with 10,024,875 shares issued and outstanding. As of December 31, 2015, there were 20,000,000 shares of common stock, par value $0.001 per share, authorized, with 9,992,941 shares issued and outstanding.
Non-Controlling Interests in Operating Partnership
We consolidate our Operating Partnership, which is a majority-owned partnership.  As of September 30, 2016, and December 31, 2015, we owned approximately 89.2% and 100.0%, respectively, of the outstanding OP Units.
On or after 12 months after becoming a holder of OP Units, each limited partner, other than the Company, has the right, subject to the terms and conditions set forth in the partnership agreement of the Operating Partnership, to require the Operating Partnership to redeem all or a portion of such units in exchange for cash or, at the Company’s option, shares of our common stock on a one-for-one basis.  The cash redemption per OP Unit would be based on the market price of our common stock at the time of redemption.  A limited partner will not be entitled to exercise redemption rights if the delivery of common stock to the redeeming limited partner would breach restrictions on the ownership of common stock imposed under our charter and other limitations thereof.
Regardless of the rights described above, the Operating Partnership will not have an obligation to issue cash to a unitholder upon a redemption request if the Company elects to redeem the OP Units for shares of its common stock.  When a non-Company unitholder redeems an OP Unit, non-controlling interest in the Operating Partnership is reduced, and stockholders’ equity is increased.
The Operating Partnership is required to make distributions on each OP Unit in the same amount as those paid on each share of the Company’s common stock, with the distributions on the OP Units held by the Company being utilized to make distributions to the Company’s common stockholders.
As of September 30, 2016, there were 1,215,306 OP Units held by non-controlling limited partners.
Distributions
The distributions to common stockholders declared by our Board of Directors and paid by us during the nine months ended September 30, 2016 and 2015 are reflected in the table below.
Fiscal Year
 
Declaration Date
 
Record Date
 
Payment Date
 
Distributions per
Common Share
2016
 
January 12, 2016
 
January 22, 2016
 
February 2, 2016
 
$
0.04000

 
 
January 12, 2016
 
February 18, 2016
 
February 29, 2016
 
0.04000

 
 
January 12, 2016
 
March 21, 2016
 
March 31, 2016
 
0.04000

 
 
April 12, 2016
 
April 22, 2016
 
May 2, 2016
 
0.04125

 
 
April 12, 2016
 
May 19, 2016
 
May 31, 2016
 
0.04125

 
 
April 12, 2016
 
June 17, 2016
 
June 30, 2016
 
0.04125

 
 
July 12, 2016
 
July 22, 2016
 
August 2, 2016
 
0.04125

 
 
July 12, 2016
 
August 22, 2016
 
August 31, 2016
 
0.04125

 
 
July 12, 2016
 
September 21, 2016
 
September 30, 2016
 
0.04125

 
 
 
 
Nine Months Ended September 30, 2016
 
$
0.36750

 
 
 
 
 
 
 
 
 
2015
 
January 13, 2015
 
January 23, 2015
 
February 3, 2015
 
$
0.03500

 
 
January 13, 2015
 
February 18, 2015
 
February 27, 2015
 
0.03500

 
 
January 13, 2015
 
March 20, 2015
 
March 31, 2015
 
0.03500

 
 
April 14, 2015
 
April 24, 2015
 
May 4, 2015
 
0.04000

 
 
April 14, 2015
 
May 19, 2015
 
May 28, 2015
 
0.04000

 
 
April 14, 2015
 
June 19, 2015
 
June 30, 2015
 
0.04000

 
 
July 14, 2015
 
July 24, 2015
 
August 4, 2015
 
0.04000

 
 
July 14, 2015
 
August 20, 2015
 
August 31, 2015
 
0.04000

 
 
July 14, 2015
 
September 21, 2015
 
September 30, 2015
 
0.04000

 
 
 
 
Nine Months Ended September 30, 2015
 
$
0.34500


The same amounts were paid as distributions on each OP Unit held by non-controlling limited partners of the Operating Partnership as of the above record dates.
We will provide information related to the federal income tax characterization of our 2016 distributions in an IRS Form 1099-DIV, which will be mailed to our stockholders in January 2017.
Registration Statement
We filed a universal registration statement on Form S-3 (File No. 333-194539) with the SEC on March 13, 2014, which the SEC declared effective on April 2, 2014. This universal registration statement permits us to issue up to an aggregate of $300.0 million in securities, consisting of common stock, senior common stock, preferred stock, subscription rights, debt securities and depository shares, including through separate, concurrent offerings of two or more of such securities. As of September 30, 2016, we have issued a total of 2,188,014 shares of common stock for gross proceeds of $23.6 million and 1,150,000 shares of preferred stock for gross proceeds of $28.8 million under this universal registration statement.
At-the-Market Program
On August 7, 2015, we entered into equity distribution agreements with Cantor Fitzgerald & Co. and Ladenburg Thalmann & Co., Inc. (each a “Sales Agent”), under which we may issue and sell, from time to time and through the Sales Agents, shares of our common stock up to $30.0 million (the “ATM Program”). During the nine months ended September 30, 2016, we issued and sold 31,934 shares of our common stock at an average sales price of $11.29 per share under the ATM Program for gross proceeds of $360,472 and net proceeds of $355,057. Through September 30, 2016, we have issued and sold a total of 64,561 shares of our common stock at an average sales price of $10.23 per share for gross proceeds of $660,176 and net proceeds of $650,266.