Nestlé Warehouse/Distribution Properties and Mortgage Debt:

During the third quarter, the Company extended the mortgage debt on three Nestlé warehouses located in Breinigsville, PA, Lathrop, CA and Fort Wayne, IN. The Company obtained an up to five year extension on the $106 million securitized first mortgage note that was scheduled to mature in August. The five year term includes borrower extension options, with the last two years of borrower options subject to re-tenanting the Fort Wayne property by August 2015. The Company is continuing to actively market the Fort Wayne property for re-lease to several potential prospects at the end of Nestlé’s lease term in December 2012.

New $10 Million Term Loan:

During October, the Company added a new banking relationship with KeyBank National Association by obtaining a new three year $10 million secured term loan from the bank. Proceeds from the new term loan were used to replace and terminate the Company’s borrowing facility with Wells Fargo that was scheduled to mature in July 2013. The new term loan includes two successive one year extension options that will allow the Company to further extend the loan until October 2017, and is secured principally by fully amortizing mortgage notes on various Company owned real properties.

Capital Activity:

During the third quarter and early part of the fourth, the Company raised approximately $25.4 million of net proceeds through the sale of preferred stock through its “at-the-market” (ATM) offering program. The Company issued 242,282 shares of 8.125% Series A Cumulative Redeemable Preferred Stock, and 776,073 shares of 8.375% Series B Cumulative Redeemable Preferred Stock. The Company utilized some of the offering proceeds to retire a portion of the convertible senior notes, and expects to use the remaining proceeds to continue to grow its investment portfolio and for other general corporate purposes. The Company did not issue any common stock through its ATM or otherwise during the quarter.

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