Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2016

The following are the distributions declared on our common stock during the years ended December 31, 2016 and 2015:

	Distributions Declared ⁽¹⁾⁽²⁾						Distributions		Cash Flows from
Period	Cash		Reinvested⁽³⁾		Total		Paid		Operations
First quarter 2015	$	1,330,000	$	85,000	$	1,415,000	$	1,354,000	$	3,348,000
Second quarter 2015		1,347,000		85,000		1,432,000		1,330,000		4,369,000
Third quarter 2015		1,363,000		86,000		1,449,000		1,347,000		5,515,000
Fourth quarter 2015		1,362,000		87,000		1,449,000		1,363,000		5,418,000
	$	5,402,000	$	343,000	$	5,745,000	$	5,394,000	$	18,650,000

First quarter 2016	$	1,342,000	$	89,000	$	1,431,000	$	1,362,000	$	6,871,000
Second quarter 2016		1,343,000		88,000		1,431,000		1,342,000		4,607,000
Third quarter 2016		1,358,000		91,000		1,449,000		1,345,000		7,072,000
Fourth quarter 2016		1,358,000		91,000		1,449,000		1,358,000		6,285,000
	$	5,401,000	$	359,000	$	5,760,000	$	5,407,000	$	24,835,000

(1)

In order to meet the requirements for being treated as a REIT under the Internal Revenue Code, we must pay distributions to our stockholders each taxable year equal to at least 90% of our net ordinary taxable income. Some of our distributions have been paid from sources other than operating cash flow, such as offering proceeds. Until proceeds from equity issuances are fully invested and generating operating cash flow sufficient to fully cover distributions to stockholders, we intend to pay all or a portion of our distributions from the proceeds of equity issuances or from borrowings in anticipation of future cash flow.

(2)

This table represents distributions declared and paid to common stockholders for each respective period. These amounts do not include distribution payments to the Series B Preferred Unit holders for the years ended December 31, 2016 and 2015.

(3)

On June 19, 2013, we filed a registration statement on Form S-3 to register up to $99,000,000 of shares of common stock to be offered to our existing stockholders pursuant to an amended and restated distribution reinvestment plan (the “DRIP offering”) pursuant to which our stockholders can elect to have their cash distributions reinvested in shares of our common stock. The purchase price for shares offered pursuant to the DRIP Offering is equal to the most recently announced estimated per-share value, as of the date the shares are purchased under the distribution reinvestment plan. The DRIP Offering shares were initially offered at a purchase price of $10.02; effective February 28, 2014 , DRIP offering shares were offered at a purchase price of $11.63 per share; and effective March 23, 2016 DRIP offering shares are being offered at $12.45, which is our most recent estimated per-share value. As of December 31, 2016 and 2015, 642,075 and 613,463 shares, respectively, had been issued under the distribution reinvestment plan.

Summary of repurchased shares

During the years ended December 31, 2016, 2015 and 2014, we redeemed shares pursuant to our stock repurchase program as follows:

Period	Total Number of Shares Redeemed		Average Price
2014		49,962	$	11.63
2015		-	$	-
2016		-	$	-

Tax Treatment Of Distributions

The return of capital for the distributions per share to common stockholders reportable for the years ended December 31, 2016, 2015 and 2014 were as follows:

Per Common Shares	2016				2015				2014
Taxable ordinary dividend	$	-	0.00	%	$	-	0.00	%	$	0.14	27.12	%
Return of capital	$	0.50	100.00	%	$	0.50	100.00	%	$	0.36	72.88	%
Capital gain	$	-	0.00	%	$	-	0.00	%	$	-	0.00	%

Sentio Healthcare Properties Inc 10-K