Financial Highlights

Results of Operations for a Share Outstanding Throughout the Periods:



	Year Ended December 31, 2012			Year Ended December 31, 2011			Year Ended December 31, 2010
Beginning Shareholders’ Equity Per Share (12/31/2011, 12/31/2010, and 12/31/2009, respectively)	$	22.55		$	24.47		$	25.04
Net Investment Income	1.35			2.71			1.91
Net Realized/Unrealized Gains (Losses)	4.08			(2.08		)	1.22
Results of Operations⁽¹⁾	5.43			0.63			3.13
Dividends Paid	(2.50		)	(2.51		)	(2.45		)
Weighted Average Share Impact on Dividends Paid⁽²⁾	(0.15		)	(0.06		)	(0.17		)
Accretive (Dilutive) Effect of Share Issuances (Net of Offering Costs) and Share Repurchases	(0.47		)	0.02			(1.08		)
Ending Shareholders’ Equity Per Share (12/31/2012, 12/31/2011, and 12/31/2010, respectively)⁽³⁾	$	24.86		$	22.55		$	24.47
Shares Outstanding, end of period	20,370,469			16,447,651			16,498,342


(1)	Calculated based on average common shares outstanding and can differ from the calculation for EPS (See Note 8).


(2)	Per share impact on dividends paid relating to share issuances/repurchases during the period as well as dividends paid to LTIP unit holders.


(3)	If all LTIP units previously issued were vested and exchanged for common shares as of December 31, 2012, 2011, and 2010, shareholders’ equity per share would be $24.38, $22.03, and $23.91, respectively.

Total Return:

The Company calculates its total return two ways, one based on its reported net asset value and the other based on its publicly-traded share price. This latter return is considered a market based return, and is only computed for periods following the completion of the Company’s October 2010 initial public offering, since the Company’s shares were not publicly traded before such time.

The following table illustrates the Company’s total return for the periods presented based on net asset value:

Net Asset Based Total Return for a Shareholder:⁽¹⁾



	Year Ended December 31, 2012⁽²⁾	Year Ended December 31, 2011⁽²⁾	Year Ended December 31, 2010
Total Return	22.16%	2.43%	7.79%


(1)	Total return is calculated for all shareholders’ equity accounts taken as a whole for each period. Total return is calculated assuming reinvestment of all distributions at shareholders’ equity per share during the period.


(2)	Total return includes the accretive effect of the share repurchase. Had this not been included, total return after incentive fee for the years ended December 31, 2012 and 2011 would have been 22.05% and 2.34%, respectively.

Supplemental Information—Net Asset Based Total Return for a Shareholder assuming conversion of all LTIP units:⁽¹⁾



	Year Ended December 31, 2012
Total Return	19.82%


(1)	Total return is calculated assuming all LTIP units had been converted into common shares at December 31, 2012. Total return represents all shareholders’ equity accounts outstanding for the entire period. LTIP units outstanding at December 31, 2012 totaled 397,096 and represent 1.91% of total shares and LTIP units outstanding as of that date.

Market Based Total Return for a Shareholder:

For the years ended December 31, 2012 and 2011, the Company’s market based total return based on the closing price as reported by the New York Stock Exchange was 46.99% and (13.04)%, respectively. For the period October 8, 2010, the first public trading date of the Company’s shares, through December 31, 2010, market based total return (using the opening price of $21.50 on October 8, 2010 as the beginning point) was 7.16%. Calculation of market based total return assumes the reinvestment of dividends at the closing price as reported by the New York Stock Exchange as of the ex-date.

Net Investment Income Ratio to Average Shareholders’ Equity:⁽¹⁾



	Year Ended December 31, 2012	Year Ended December 31, 2011	Year Ended December 31, 2010
Net Investment Income⁽²⁾	5.59%	11.58%	7.66%


(1)	Average shareholders’ equity is calculated using month end values.


(2)	Includes incentive fee in calculation which can vary substantially over periods.

Expense Ratios to Average Shareholders’ Equity:⁽¹⁾



	Year Ended December 31, 2012	Year Ended December 31, 2011	Year Ended December 31, 2010
Operating expenses before incentive fee and interest expense	(2.94)%	(3.00)%	(3.89)%
Incentive fee	(4.43)%	(0.16)%	(1.37)%
Interest expense	(1.80)%	(1.72)%	(1.18)%
Total Expenses	(9.17)%	(4.88)%	(6.44)%


(1)	Average shareholders’ equity is calculated using month end values.