Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

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Stockholders' Equity
 9 Months Ended
Sep. 30, 2014
Equity [Abstract]  
Stockholders' Equity

NOTE 6. STOCKHOLDERS’ EQUITY

The following table summarizes the changes in our stockholders’ equity for the nine months ended September 30, 2014:

 

     Common Stock      Additional
Paid-in Capital 		     Distributions
in Excess of
Earnings 		    Total
Stockholders’
Equity 		 
     Number
of Shares 		     Par Value          
               

Balance at December 31, 2013

      6,530,264       $ 6,530       $ 51,326,262       $ (2,820,800 )    $ 48,511,992   

Net loss

      —           —           —           (179,803 )      (179,803 ) 

Proceeds from issuance of common stock, net

      1,150,000         1,150         13,219,525         —          13,220,675   

Distributions

      —           —           —           (1,763,171 )      (1,763,171 ) 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Balance at September 30, 2014

      7,680,264       $ 7,680       $ 64,545,787       $ (4,763,774 )    $ 59,789,693   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

2013 Initial Public Offering

On January 28, 2013, we priced our initial public offering (“IPO”) of 3,333,334 shares of our common stock at a public offering price of $15.00 per share, which closed on January 31, 2013. Including the underwriters’ option to cover over-allotments, which was exercised on February 19, 2013, we issued a total of 3,780,264 shares, resulting in gross proceeds of $56.7 million and net proceeds, after deducting underwriting discounts and offering expenses borne by us, of approximately $51.3 million. Approximately $37.9 million of these proceeds were invested in new property acquisitions, and an additional $1.7 million was expended or accrued for capital improvements on existing properties. In addition, $10.3 million was used to pay distributions to our stockholders, and a portion was used for other general corporate purposes. As of September 30, 2014, there were no uninvested proceeds remaining from our IPO.

2014 Follow-on Offering

On September 24, 2014, we priced a follow-on public offering (the “Follow-on Offering”) of 1,150,000 shares of our common stock at a public offering price of $12.28 per share, which closed on September 29, 2014. In connection with the Follow-on Offering, we issued a total of 1,150,000 shares, resulting in gross proceeds of approximately $14.1 million and net proceeds, after deducting underwriting discounts and offering expenses borne by us, of approximately $13.3 million. $11.1 million of these proceeds were used to repay existing debt, with the remainder being invested into new property acquisitions. As of September 30, 2014, there were no uninvested proceeds remaining from our Follow-on Offering.

Subsequent to September 30, 2014, the underwriters informed us of their intent to exercise their over-allotment option in connection with the Follow-on Offering, and, as a result, we issued an additional 73,453 shares, which will result in gross proceeds of approximately $0.9 million. See Footnote 9, “Subsequent Events,” for further discussion on the over-allotment exercise.

 

Distributions

Our Board of Directors declared and paid the following monthly distributions to common stockholders for the nine months ended September 30, 2014 and 2013:

 

Fiscal Year

    Declaration Date    Record Date    Payment Date    Distribution
per Common Share 		 
           

2014

    January 7, 2014    January 22, 2014    January 31, 2014    $  0.03   
   January 7, 2014    February 19, 2014    February 28, 2014      0.03   
   January 7, 2014    March 17, 2014    March 31, 2014      0.03   
   April 8, 2014    April 21, 2014    April 30, 2014      0.03   
   April 8, 2014    May 20, 2014    May 30, 2014      0.03   
   April 8, 2014    June 19, 2014    June 30, 2014      0.03   
   July 15, 2014    July 25, 2014    August 5, 2014      0.03   
   July 15, 2014    August 20, 2014    August 29, 2014      0.03   
   July 15, 2014    September 19, 2014    September 30, 2014      0.03   
           

 

 

  

Nine months ended September 30, 2014

    $ 0.27   
           

 

 

  

2013

    February 5, 2013    February 15, 2013    February 28, 2013    $ 0.04   
   February 5, 2013    March 15, 2013    March 28, 2013      0.04   
   April 9, 2013    April 22, 2013    April 30, 2013      0.12   
   April 9, 2013    May 20, 2013    May 31, 2013      0.12   
   April 9, 2013    June 19, 2013    June 28, 2013      0.12   
   July 9, 2013    July 19, 2013    July 31, 2013      0.12   
   July 9, 2013    August 21, 2013    August 30, 2013      0.12   
   July 9, 2013    September 18, 2013    September 30, 2013      0.12   
           

 

 

  

Nine months ended September 30, 2013

    $ 0.80   
           

 

 

  

We will provide information related to the federal income tax characterization of our 2014 distributions in an IRS Form 1099-DIV, which will be mailed to our stockholders in January 2015.

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. The 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 warrants to purchase common stock, including through a combined offering of two or more of such securities. As of September 30, 2014, we have issued 1,150,000 shares of common stock for gross proceeds of $14.1 million under this registration statement. In addition, subsequent to September 30, 2014, we issued an additional 73,453 shares of common stock in connection with the underwriters’ exercise of their option to cover over-allotments from our Follow-on Offering. See Footnote 9, “Subsequent Events,” for further discussion on the over-allotment exercise.