EQUITY

Share Redemption Program

On April 1, 2015, the Company’s board of directors approved the reinstatement of the share redemption program (which had been suspended since January 15, 2013) and adopted an Amended and Restated Share Redemption Program (the “SRP”). The SRP was subsequently amended on August 7, 2015 and August 10, 2016.

On October 5, 2016, the board of directors approved, pursuant to Section 3(a) of SRP, an additional $0.5 million of funds available for the redemption of shares in connection with the death of a stockholder.

The following table summarizes share redemption activity during the three months ended March 31, 2017 and 2016 (amounts in thousands, except shares):



	Three Months Ended March 31,
	2017		2016
Shares of common stock redeemed	31,875		30,721
Purchase price	$	203	$	202

Cumulatively, through March 31, 2017, the Company has redeemed 507,069 shares sold in the Offering and/or its dividend reinvestment plan for $3.9 million.

Quarterly Distributions

In order to qualify as a REIT, the Company is required to distribute at least 90% of its annual REIT taxable income, subject to certain adjustments, to its stockholders. Some or all of the Company’s distributions have been paid, and in the future may continue to be paid from sources other than cash flows from operations.

Under the terms of the amended Key Bank credit facility, the Company may pay distributions to its investors so long as the total amount paid does not exceed 100% of the cumulative Adjusted Funds From Operations plus up to an additional $2.0 million of the Company’s net proceeds from property dispositions, as defined in the amended KeyBank credit facility; provided, however, that the Company is not restricted from making any distributions necessary in order to maintain its status as a REIT. The Company’s board of directors evaluates the Company’s ability to make quarterly distributions based on the Company’s operational cash needs.

The following tables set forth the quarterly distributions declared to the Company’s common stockholders and Common Unit holders for the three months ended March 31, 2017 and the year ended December 31, 2016 (amounts in thousands, except per share amounts):



	Distribution Record Date	Distribution Payable Date	Distribution Per Share of Common Stock / Common Unit		Total Common Stockholders Distribution		Total Common Unit Holders Distribution		Total Distribution
First Quarter 2017	3/31/2017	4/28/2017	$	0.06	$	655	$	25	$	680



	Distribution Record Date	Distribution Payable Date	Distribution Per Share of Common Stock / Common Unit		Total Common Stockholders Distribution		Total Common Unit Holders Distribution		Total Distribution
First Quarter 2016	3/31/2016	4/29/2016	$	0.06	$	660	$	26	$	686
Second Quarter 2016	7/7/2016	7/29/2016	0.06		661		25		686
Third Quarter 2016	9/30/2016	10/31/2016	0.06		659		25		684
Fourth Quarter 2016	12/30/2016	1/31/2017	0.06		656		25		681
Total					$	2,636	$	101	$	2,737