We entered into an advisory agreement pursuant to which Lightstone Value Plus REIT II LLC (the “Advisor”), an affiliate of The Lightstone Group, LLC (the “Sponsor”), supervises and manages our day-to-day operations and selects our real estate and real estate related investments, subject to oversight by our board of directors. We pay the Advisor fees for services related to the investment and management of our assets, and we will reimburse the Advisor for certain expenses incurred on our behalf. The Sponsor and Advisor are majority-owned and controlled by David Lichtenstein, the Chairman of our board of directors and our Chief Executive Officer.
The principal offices of the Company are located at 1985 Cedar Bridge Avenue Suite 1 Lakewood, New Jersey, and its telephone number is (732) 367-0129.
As of April 17, 2024, we had 16.4 million Shares outstanding, held by 4,940 stockholders of record.
Distribution Information
There were no distributions declared or paid on our common stock for any periods during the year ended December 31, 2022. However on March 22, 2023, our board of directors began declaring regular quarterly distributions on our common stock at the pro rata equivalent of an annual distribution of $0.30 per share, or an annualized rate of 3% assuming a purchase price of $10.00 per share. Total distributions declared during the year ended December 31, 2023 were $5.1 million.
On March 18, 2024, our board of directors authorized and we declared a distribution on our common stock of $0.075 per share for the quarterly period ending March 31, 2024. The distribution is the pro rata equivalent of an annual distribution of $0.30 per share, or an annualized rate of 3% based on a share price of $10.00. The distribution will be paid on or about the 15th day of the month following the quarter-end to stockholders of record at the close of business on the last day of the quarter end.
Future distributions declared, if any, will be at the discretion of our board of directors based on their analysis of our performance over the previous periods and expectations of performance for future periods. Our board of directors will consider various factors in its determination, including but not limited to, the sources and availability of capital, revenues and other sources of income, operating and interest expenses and our ability to refinance near-term debt as well as the IRS’s annual distribution requirement that REITs distribute no less than 90% of their taxable income. We cannot assure that any future distributions will be made or that we will maintain any particular level of distributions that we have previously established or may establish.
Share Repurchase Program
Our share repurchase program (the “SRP”) may provide eligible stockholders with limited, interim liquidity by enabling them to sell Common Shares back to us, subject to restrictions and applicable law.
On March 19, 2020, our board of directors amended the SRP to remove stockholder notice requirements and also approved the suspension of all redemptions.
Effective May 10, 2021, our board of directors partially reopened the SRP to allow, subject to various conditions as set forth below, for redemptions submitted in connection with a stockholder’s death and hardship, respectively, and set the price for all such purchases to our current estimated net asset value per share of common stock, as determined by our board of directors and reported by us from time to time. Deaths that occurred subsequent to January 1, 2020 were eligible for consideration, subject to certain conditions. Beginning January 1, 2022, requests for redemptions in connection with a stockholder’s death must be submitted and received by us within one year of the stockholder’s date of death for consideration.
On the above noted date, our board of directors established that on an annual basis, we would not redeem in excess of 0.5% of the number of shares outstanding as of the end of the preceding year for either death or hardship redemptions, respectively. Additionally, redemption requests generally would be processed on a quarterly basis and would be subject to proration if either type of redemption requests exceeded the annual limitation.
In connection with the approval of the issuer tender offer, on November 13, 2023, our board of directors approved the suspension of the SRP effective November 20, 2023. Pursuant to the terms of the SRP, while the SRP is suspended, we will not accept any requests for redemption and any such requests and all pending requests will not be honored or retained, but will be returned to the requestor. As a result of the termination of the issuer tender offer on February 5, 2024, on March 18, 2024, our board of directors reinstated the SRP.