Shareholders' Equity

9 Months Ended

Sep. 30, 2016

Equity [Abstract]

Shareholders' Equity

NOTE 6 - SHAREHOLDERS’ EQUITY

Common Stock

On September 15, 2016, the Company paid total cash dividends of $5,031,778 or $0.18 per share to common shareholders of record as of close of business on August 15, 2016, of which $629,869 was reinvested in the Dividend Reinvestment and Stock Purchase Plan (“DRIP”). Total dividends paid to our common shareholders for the nine months ended September 30, 2016 amounted to $14,814,113 of which $1,738,947 was reinvested. On October 3, 2016, the Company declared a dividend of $0.18 per share to be paid December 15, 2016 to common shareholders of record as of close of business on November 15, 2016.

During the nine months ended September 30, 2016, the Company received, including dividends reinvested of $1,738,947, a total of $11,006,722 from its DRIP. There were 1,026,701 new shares issued under the DRIP during this period.

8.25% Series A Cumulative Redeemable Preferred Stock

On September 15, 2016, the Company paid $1,889,147 in dividends or $0.515625 per share for the period from June 1, 2016 through August 31, 2016 to shareholders of record as of close of business on August 15, 2016 of our 8.25% Series A Cumulative Redeemable Preferred Stock, Liquidation Preference $25.00 per share (“Series A Preferred”). Dividends on our Series A Preferred shares are cumulative and payable quarterly at an annual rate of $2.0625 per share. Total dividends paid to our Series A Preferred shareholders for the nine months ended September 30, 2016 amounted to $5,667,441.

On October 3, 2016, the Company declared a dividend of $0.515625 per share for the period from September 1, 2016 through November 30, 2016 to be paid on December 15, 2016 to Series A Preferred shareholders of record as of close of business on November 15, 2016.

8.0% Series B Cumulative Redeemable Preferred Stock

On September 15, 2016, the Company paid $1,900,600 in dividends or $0.50 per share for the period from June 1, 2016 through August 31, 2016 to shareholders of record as of close of business on August 15, 2016 of our 8.0% Series B Cumulative Redeemable Preferred Stock, Liquidation Preference $25.00 per share (“Series B Preferred”). Dividends on our Series B Preferred shares are cumulative and payable quarterly at an annual rate of $2.00 per share. Total dividends paid to our Series B Preferred shareholders for the nine months ended September 30, 2016 amounted to $5,106,458.

On October 3, 2016, the Company declared a dividend of $0.50 per share for the period from September 1, 2016 through November 30, 2016 to be paid on December 15, 2016 to Series B Preferred shareholders of record as of close of business on November 15, 2016.

On April 5, 2016, the Company issued and sold 2,000,000 shares of its Series B Preferred stock in a registered direct placement at a sale price of $25.50 per share. The Company received net proceeds from the offering after expenses of approximately $49.1 million and used the net proceeds for general corporate purposes, which included purchase of manufactured homes for sale or lease to customers, expansion of its existing communities, acquisitions of additional properties and repayment of indebtedness on a short-term basis. The Series B Preferred shares has no maturity and will remain outstanding indefinitely unless redeemed or otherwise repurchased. The Series B Preferred shares ranks on a parity with the Company’s Series A Preferred shares with respect to dividend rights and rights upon liquidation, dissolution or winding up.

In conjunction with the issuance of the Company’s Series B Preferred shares, on April 4, 2016, the Company filed with the Maryland State Department of Assessments and Taxation (the “Maryland SDAT”), an amendment to the Company’s charter to increase the authorized number of shares of the Company’s common stock by 11,000,000 shares. As a result of this amendment, the Company’s total authorized shares were increased from 70,663,800 shares (classified as 62,000,000 shares of common stock, 3,663,800 shares of Series A Preferred stock, 2,000,000 shares of Series B Preferred stock and 3,000,000 shares of excess stock) to 81,663,800 shares (classified as 73,000,000 shares of common stock, 3,663,800 shares of Series A Preferred stock, 2,000,000 shares of Series B Preferred stock and 3,000,000 shares of excess stock). Immediately following this amendment, the Company filed with the Maryland SDAT Articles Supplementary reclassifying 2,000,000 shares of Common Stock as shares of Series B Preferred stock. After the reclassification, the Company’s authorized stock consisted of 71,000,000 shares of common stock, 3,663,800 shares of Series A Preferred stock, 4,000,000 shares of Series B Preferred stock and 3,000,000 shares of excess stock.

On August 11, 2016, the Company filed with the MSAT a further amendment to the Company’s charter to increase the authorized number of shares of the Company’s common stock by 4,000,000 shares. As a result of this amendment, the Company’s total authorized shares were increased from 81,663,800 shares (classified as 71,000,000 shares of common stock, 3,663,800 shares of Series A Preferred stock, 4,000,000 shares of Series B Preferred stock and 3,000,000 shares of excess stock) to 85,663,800 shares (classified as 75,000,000 shares of common stock, 3,663,800 shares of Series A Preferred stock, 4,000,000 shares of Series B Preferred stock and 3,000,000 shares of excess stock).