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Related Party Transactions (Notes)
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3 Months Ended |
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Mar. 31, 2012
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| Related Party Transactions [Abstract] | |
| Related Party Transactions |
Related Party Transactions
The following summary provides disclosure of the material transactions with affiliates of the Company.
In accordance with the Management Agreement with PRCM Advisers, the Company incurred $6.7 million and $1.6 million as a management fee to PRCM Advisers for the three months ended March 31, 2012 and 2011, respectively, which represents approximately 1.5% of stockholders' equity on an annualized basis as defined by the Management Agreement. In addition, the Company reimbursed PRCM Advisers for direct and allocated costs incurred by PRCM Advisers on behalf of the Company. These direct and allocated costs totaled approximately $4.4 million and $0.9 million for the three months ended March 31, 2012 and 2011, respectively. Approximately $3.4 million and $0.7 million was expensed for the three months ended March 31, 2012 and 2011, respectively. Approximately $0.5 million and $0.1 million were considered prepaid and classified as other assets on the condensed consolidated balance sheet for the three months ended March 31, 2012 and 2011. Approximately $0.5 million and $0.1 million in out-of-pocket expenses was charged against equity as a cost of raising capital for the three months ended March 31, 2012 and 2011, respectively.
The Company recognized $60,070 and $62,498 of compensation expense during the three months ended March 31, 2012 and 2011, respectively, associated with the amortization of shares of restricted stock issued to the independent directors.
As of March 31, 2012, there were 33,249,000 publicly-held registered warrants to purchase up to 33,249,000 shares of common stock issued and outstanding. Of the 33,249,000 warrants, 7,000,000 are beneficially owned by the founders of Capitol, and 2,906,918 are beneficially owned by Pine River Master Fund Ltd. and Nisswa Acquisition Master Fund Ltd., which are investment funds managed by Pine River. The Company is required to maintain a resale registration statement for the warrants and common stock issuable upon exercise thereof that are held by Pine River Master Fund Ltd., Nisswa Acquisition Master Fund Ltd., and the founders of Capitol.
On February 3, 2012, a subsidiary of the Company entered into an Acquisition Services Agreement, a Property Management Agreement and a side letter agreement regarding certain fees with Silver Bay Property Management LLC, or Silver Bay, which is a joint venture between Provident Real Estate Advisors LLC and an affiliate of PRCM Advisers and Pine River. Under the Acquisition Services Agreement, Silver Bay will assist the Company's subsidiary in identifying and acquiring a portfolio of residential real properties in various geographic areas throughout the U.S. Under the Property Management Agreement, Silver Bay will operate, maintain, repair, manage and lease the residential properties and collect rental income for the benefit of the Company and its affiliates. Pursuant to the side letter, the Company's subsidiary is obligated to pay Silver Bay for various services provided under the Acquisition Services and the Property Management Agreements.
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