| | • | | Subsequent to quarter end, sold a CMBSB-piece at a premium to 3/31/19 fair market value, which resulted in approximately $33 million in proceeds and an $4 million realized gain that will be recognized in the third quarter 2019 |
| | • | | As of August 6, 2019, total corporate liquidity of approximately $383 million throughcash-on-hand and availability under the corporate revolving credit facility |
Common Stock and Operating Partnership Units
On February 1, 2019, allClass B-3 common stock converted to Class A common stock (the “common stock”). As of August 6, 2019, the Company had approximately 128.5 million shares of 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 Announcement
The Company’s Board of Directors declared a monthly cash dividend of $0.145 per share of common stock (the “common stock”) (i) for the monthly period ended April 30, 2019, which was paid on May 10, 2019, to stockholders of record on April 30, 2019, (ii) for the monthly period ended May 31, 2019, which was paid on June 10, 2019, to stockholders of record on May 31, 2019, and (iii) for the monthly period ended June 30, 2019, which was paid on July 15, 2019, to stockholders of record on June 30, 2019.
Subsequent to the end of the second 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 July 31, 2019, which will be paid on August 9, 2019, to stockholders of record on July 31, 2019 and (ii) for the monthly period ending August 31, 2019, which will be paid on September 10, 2019, to stockholders of record on August 31, 2019.
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 accounting principles generally accepted in the United States (“U.S. GAAP” or “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 OP) 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. Such impairment and losses may ultimately be realized, in part or full, upon a sale or monetization of the related investments and such realized losses 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.
