Common Stock and Operating Partnership Units
As of November 5, 2018, the Company had approximately 127.9 million shares of class A and classB-3 common stock outstanding and the Company’s operating partnership had approximately 3.1 million operating partnership units (“OP units”) outstanding held by members other than the Company or its subsidiaries.
Dividend
The Company’s Board of Directors declared a monthly cash dividend of $0.145 per share of class A and classB-3 common stock (the “common stock”) (i) for the monthly period ended July 31, 2018, which was paid on August 10, 2018, to stockholders of record on July 31, 2018, (ii) for the monthly period ended August 31, 2018, which was paid on September 10, 2018, to stockholders of record on August 31, 2018, and (iii) for the monthly period ended September 30, 2018, which was paid on October 10, 2018, to stockholders of record on September 28, 2018.
Subsequent to the end of the third quarter, the Company’s Board of Directors declared a monthly cash dividend of $0.145 per share of common stock (i) for the monthly period ended October 31, 2018, which will be paid on November 9, 2018, to stockholders of record on October 31, 2018, and (ii) for the monthly period ended November 30, 2018, which will be paid on December 10, 2018, to stockholders of record on November 30, 2018.
Non-GAAP Financial Measures and Definitions
Core Earnings
We present Core Earnings, which is anon-GAAP supplemental financial measure of our performance. We believe that Core Earnings provides meaningful information to consider in addition to our net income and cash flow from operating activities determined in accordance with U.S. GAAP. This supplemental financial measure helps us to evaluate our performance excluding the effects of certain transactions and U.S GAAP adjustments that we believe are not necessarily indicative of our current portfolio and operations. We also use Core Earnings to determine the incentive fees we pay to our Manager. For information on the fees we pay our Manager, see Note 11, “Related Party Arrangements” to our consolidated financial statements included in Form10-Q to be filed with the U.S. Securities and Exchange Commission (“SEC”). In addition, we believe that our investors also use Core Earnings or a comparable supplemental performance measure to evaluate and compare the performance of us and our peers, and as such, we believe that the disclosure of Core Earnings is useful to our investors.
We define Core Earnings as U.S. GAAP net income (loss) attributable to our common stockholders (or, without duplication, the owners of the common equity of our direct subsidiaries, such as our operating partnership) and excluding(i) non-cash equity compensation expense, (ii) the expenses incurred in connection with our formation, (iii) the incentive fee, (iv) acquisition costs from successful acquisitions, (v) depreciation and amortization, (vi) any unrealized gains or losses or other similarnon-cash items that are included in net income for the current quarter, regardless of whether such items are included in other comprehensive income or loss, or in net income,(vii) one-time events pursuant to changes in U.S. GAAP and (viii) certain materialnon-cash income or expense items that in the judgment of management should not be included in Core Earnings. For clauses (vii) and (viii), such exclusions shall only be applied after discussions between our Manager and our independent directors and after approval by a majority of our independent directors. Core Earnings reflects adjustments to U.S. GAAP net income to exclude impairment of real estate and provision for loan losses. Upon realization of the related investments, such impairment and losses, to the extent realized, would be reflected in Core Earnings.
Core Earnings does not represent net income or cash generated from operating activities and should not be considered as an alternative to U.S. GAAP net income or an indication of our cash flows from operating activities determined in accordance with U.S. GAAP, a measure of our liquidity, or an indication of funds available to fund our cash needs, including our ability to make cash distributions. In addition, our methodology for calculating Core Earnings may differ from methodologies employed by other companies to calculate the same or similarnon-GAAP supplemental financial measures, and accordingly, our reported Core Earnings may not be comparable to the Core Earnings reported by other companies.
