Partners' Capital of the Operating Partnership

12 Months Ended

Dec. 31, 2019

Partners' Capital [Abstract]

Partners' Capital of the Operating Partnership

Partners’ Capital of the Operating Partnership

Common Units

Issuance of Common Units

In July 2019, the Company physically settled the forward equity sale agreements entered into in August 2018 (see Note 13 “Stockholders’ Equity of the Company”). Upon settlement, the Company issued 5,000,000 shares of common stock for net proceeds of $354.3 million and contributed the net proceeds to the Operating Partnership in exchange for 5,000,000 common units.

At-The-Market Stock Offering Program

The Company did not issue any shares of common stock under its at-the-market stock offering program during the year ended December 31, 2019. During the years ended December 31, 2018 and 2017, the Company utilized its at-the-market stock offering programs to issue shares of common stock. See Note 13 “Stockholders’ Equity of the Company” for additional information. The net offering proceeds contributed by the Company to the Operating Partnership in exchange for common units for the years ended December 31, 2019, 2018 and 2017 are as follows:

	Year Ended December 31,
	2018		2017
	(in millions, except share and per share data)
Shares of common stock contributed by the Company	1,817,195		235,077
Common units exchanged for shares of common stock by the Company	1,817,195		235,077
Aggregate gross proceeds	$	133.8	$	17.7
Aggregate net proceeds after selling commissions	$	132.1	$	17.5

Common Units Outstanding

The following table sets forth the number of common units held by the Company and the number of common units held by non-affiliated investors and certain of our executive officers and directors in the form of noncontrolling common units as well as the ownership interest held on each respective date:

	December 31, 2019		December 31, 2018
Company owned common units in the Operating Partnership	106,016,287		100,746,988
Company owned general partnership interest	98.1	%	98.0	%
Noncontrolling common units of the Operating Partnership	2,023,287		2,025,287
Ownership interest of noncontrolling interest	1.9	%	2.0	%

For a further discussion of the noncontrolling common units during the years ended December 31, 2019 and 2018, refer to Note 11 “Noncontrolling Interests on the Company’s Consolidated Financial Statements.”

Accrued Distributions

The following tables summarize accrued distributions for the noted common units as of December 31, 2019 and 2018:

	December 31, 2019		December 31, 2018
	(in thousands)
Distributions payable to:
General partner	$	51,418	$	45,840
Common limited partners	981		922
RSU holders (1)	820		797
Total accrued distributions to common unitholders	$	53,219	$	47,559

______________________

(1) The amount includes the value of the dividend equivalents that will be paid with additional RSUs (see Note 15 “Share-Based Compensation” for additional information).

	December 31, 2019	December 31, 2018
Outstanding Units:
Common units held by the general partner	106,016,287	100,746,988
Common units held by the limited partners	2,023,287	2,025,287
RSUs (1)	1,651,905	1,711,628

______________________

(1) Does not include 932,675 and 1,018,337 market measure-based RSUs because not all the necessary performance conditions have been met as of December 31, 2019 and 2018, respectively. Refer to Note 15 “Share-Based Compensation” for additional information.

Preferred Units

On August 15, 2017, the Company redeemed all 4,000,000 shares of its 6.375% Series H Preferred Stock. For each share of Series H Preferred Stock that was outstanding, the Company had an equivalent number of 6.375% Series H Preferred Units (“Series H Preferred Units”) outstanding with substantially similar terms as the Series H Preferred Stock. In connection with the redemption of the Series H Preferred Stock, the Series H Preferred Units held by the Company were redeemed by the Operating Partnership.

On March 30, 2017, the Company redeemed all 4,000,000 shares of its 6.875% Series G Preferred Stock. For each share of Series G Preferred Stock that was outstanding, the Company had an equivalent number of 6.875% Series G Preferred Units (“Series G Preferred Units”) outstanding with substantially similar terms as the Series G Preferred Stock. In connection with the redemption of the Series G Preferred Stock, the Series G Preferred Units held by the Company were redeemed by the Operating Partnership.

In connection with the redemption of the Series G and Series H Preferred Stock, during the year ended December 31, 2017 we recorded non-cash charges of $7.6 million as a reduction to net income available to common unitholders for the original issuance costs of the Series H and Series G Preferred Stock.