Stockholders' Equity Matters

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Stockholders' Equity Matters

Our board of directors has adopted a dividend policy under which we have paid, and in the future intend to pay, quarterly cash dividends on our common stock. The amount and timing of future dividends will continue to be subject to the approval of our board of directors, in its sole discretion, and to applicable legal requirements.

On September 15, 2014, we announced the declaration by our board of directors of a special distribution of $700,000 (the "Special Distribution"), payable to stockholders of record as of September 30, 2014 (the "Record Date"). The Special Distribution represented the remaining amount of our undistributed earnings and profits attributable to all taxable periods ending on or prior to December 31, 2013, which in accordance with tax rules applicable to REIT conversions, we were required to pay to our stockholders on or before December 31, 2014 in connection with our conversion to a REIT. The Special Distribution also included certain items of taxable income that we recognized in 2014, such as depreciation recapture in respect of accounting method changes commenced in our pre-REIT period as well as foreign earnings and profits recognized as dividend income. The Special Distribution followed an initial special distribution of $700,000 paid to stockholders in November 2012.

The Special Distribution was paid on November 4, 2014 (the "Payment Date") to stockholders of record as of the Record Date in a combination of common stock and cash. Stockholders had the right to elect to be paid their pro rata portion of the Special Distribution in all common stock or all cash, with the total cash payment to stockholders limited to no more than $140,000, or 20% of the total Special Distribution, not including cash paid in lieu of fractional shares. Based on stockholder elections, we paid $140,000 of the Special Distribution in cash, not including cash paid in lieu of fractional shares, with the balance paid in the form of common stock. Our shares of common stock were valued for purposes of the Special Distribution based upon the average closing price on the three trading days following October 24, 2014, or $35.55 per share, and as such, we issued approximately 15,750,000 shares of common stock in the Special Distribution. These shares impact weighted average shares outstanding from the date of issuance, and thus impact our earnings per share data prospectively from the Payment Date.

In November 2014, our board of directors declared a distribution of $0.255 per share (the "Catch-Up Distribution") payable on December 15, 2014 to stockholders of record on November 28, 2014. Our board of directors declared the Catch-Up Distribution because our cash distributions paid from January 2014 through July 2014 were declared and paid before our board of directors had determined that we would elect REIT status effective January 1, 2014 and were lower than they otherwise would have been if the final determination to elect REIT status effective January 1, 2014 had been prior to such distributions.

In 2014 and 2015, our board of directors declared the following dividends:

Declaration Date	Dividend Per Share		Record Date	Total Amount		Payment Date
March 14, 2014	$	0.2700	March 25, 2014	$	51,812	April 15, 2014
May 28, 2014	0.2700		June 25, 2014	52,033		July 15, 2014
September 15, 2014	0.4750		September 25, 2014	91,993		October 15, 2014
September 15, 2014(1)	3.6144		September 30, 2014	700,000		November 4, 2014
November 17, 2014(2)	0.2550		November 28, 2014	53,450		December 15, 2014
November 17, 2014	0.4750		December 5, 2014	99,617		December 22, 2014
February 19, 2015	0.4750		March 6, 2015	99,795		March 20, 2015
May 28, 2015	0.4750		June 12, 2015	100,119		June 26, 2015
August 27, 2015	0.4750		September 11, 2015	100,213		September 30, 2015
October 29, 2015	0.4850		December 1, 2015	102,438		December 15, 2015

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(1) Represents Special Distribution.

(2) Represents Catch-Up Distribution.

During the years ended December 31, 2013, 2014 and 2015, we declared distributions to our stockholders of $206,365, $1,048,905 and $402,565, respectively. These distributions represent approximately $1.08 per share, $5.37 per share and $1.91 per share for the years ended December 31, 2013, 2014 and 2015, respectively, based on the weighted average number of common shares outstanding during each respective year. For 2014, total amounts distributed included the Special Distribution of $700,000, or $3.61 per share, associated with our conversion to a REIT.

For federal income tax purposes, distributions to our stockholders are generally treated as nonqualified ordinary dividends, qualified ordinary dividends or return of capital. The United States Internal Revenue Service requires historical C corporation earnings and profits to be distributed prior to any REIT distributions, which may affect the character of each distribution to our stockholders, including whether and to what extent each distribution is characterized as a qualified or nonqualified ordinary dividend. For the years ended December 31, 2013, 2014 and 2015, the dividends we paid on our common shares were classified as follows:

	Year Ended December 31,
	2013		2014		2015
Nonqualified ordinary dividends	0.0	%	26.4	%	49.3	%
Qualified ordinary dividends	100.0	%	56.4	%	39.1	%
Return of capital	0.0	%	17.2	%	11.6	%
	100.0	%	100.0	%	100.0	%