Stockholders' Equity of the REIT and Partners' Capital of the Operating Partnership

3 Months Ended

Mar. 31, 2013

Stockholders' Equity of the REIT and Partners' Capital of the Operating Partnership

8.     Stockholders’ Equity of the REIT and Partners’ Capital of the Operating Partnership

Operating Partnership

For each share of common stock or preferred stock the REIT issues, the Operating Partnership issues a corresponding common or preferred partnership unit, as applicable, to the REIT in exchange for the contribution of the proceeds from the stock issuance. In addition, other third parties and certain current and former directors and officers of the REIT own common limited partnership units that make up approximately 0.41% of the common partnership units.

Preferred Stock of the REIT

On March 21, 2013, we notified our intent to redeem all of the outstanding series L, M, O, P, R, and S preferred stock. As a result, as of March 31, 2013, the outstanding redeemable preferred stock for these series were reflected as a liability at redemption value and we recognized a loss of $9.1 million, which primarily represents the difference between redemption value and carrying value net of deferred issuance costs. We completed this redemption on April 19, 2013. We have two million shares of series Q preferred stock, our only remaining preferred stock, with a liquidation preference of $50 per share and a par value of $0.01, which will be redeemable at our option on and after November 13, 2026.