Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Our common stock is traded on the Nasdaq Global Select Market under the symbol “SSSS.” Prior to November 24, 2021, our common stock traded on the Nasdaq Capital Market under the same symbol ("SSSS"). Our common stock has historically traded at prices both above and below our net asset value per share. It is not possible to predict whether our common stock will trade at, above or below net asset value ("NAV"). See "Item 1A. Risk Factors—Risks Related to an Investment in Our Securities." The following table sets forth, for each fiscal quarter for the fiscal years ended December 31, 2021, 2020 and 2019, the net asset value per share of our common stock, the range of high and low closing sales prices for our common stock, and such closing sales price as a percentage (premium and discount) to our net asset value per share. The closing market prices reported below have been adjusted to give retroactive effect to material changes resulting from stock dividends. The reported closing market price of our common stock on March 10, 2022 was $8.92 per share, which represented an approximately 23.9% discount to our net asset value of $11.72 per share as of December 31, 2021.
Price Range High Close Price as a Premium/(Discount) to NAV (2)
Low Close Price as a Premium/(Discount) to NAV (2)
NAV (1)
High Low
Fiscal 2021
Fourth Quarter $ 11.72 $ 15.60 $ 11.41 33.1 % (2.6) %
Third Quarter 14.79 16.25 12.19 9.9 (17.6)
Second Quarter 16.56 15.52 13.07 (6.3) (21.1)
First Quarter 18.01 15.43 12.33 (14.3) (31.5)
Fiscal 2020
Fourth Quarter $ 15.14 $ 13.29 $ 8.16 (12.2) % (46.1) %
Third Quarter 12.46 14.31 8.63 14.8 (30.7)
Second Quarter 11.84 9.19 5.31 (22.4) (55.2)
First Quarter 10.22 7.00 3.61 (31.5) (64.7)
Fiscal 2019
Fourth Quarter $ 11.38 $ 6.90 $ 5.75 (39.4) % (49.5) %
Third Quarter 11.24 6.66 6.13 (40.7) (45.5)
Second Quarter 10.75 7.19 6.13 (33.1) (43.0)
First Quarter 10.75 8.37 5.20 (22.1) (51.6)
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(1) NAV per share is determined as of the last day in the relevant quarter and therefore may not reflect the NAV per share on the date of the high and low close prices. The NAV per share figures shown are based on outstanding shares at the end of each period.
(2) Calculated as the respective high or low close sales price divided by the NAV and subtracting 1.
Holders
As of March 10, 2022, there were 10 holders of record of our common stock (including Cede & Co.).
Distributions
We have elected to be treated as a RIC under Subchapter M of the Code and expect to continue to operate in a manner so as to qualify for the tax treatment applicable to RICs. To maintain RIC tax treatment, we must, among other things, distribute at least 90% of our ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any. Further, undistributed taxable income (subject to a 4% excise tax) pertaining to a given fiscal year may be distributed up to 12 months subsequent to the end of that fiscal year, provided such dividends are declared prior to the later of (1) the fifteenth day of the ninth month following the close of that fiscal year or (2) the extended due date for filing the U.S. federal income tax return for that fiscal year. In order to avoid certain excise taxes imposed on RICs, we currently intend to distribute during each calendar year an amount at least equal to the sum of (1) 98% of our ordinary income for the calendar year, (2) 98.2% of our capital gains in excess of capital losses for the one-year period ending on October 31 of the calendar year and (3) any ordinary income and net capital gains for preceding years that were not distributed during such years. In addition, although we currently intend to distribute realized net capital gains (i.e., net long-term capital gains in excess of net short-term capital losses), if any,
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at least annually, we may in the future decide to retain such capital gains for investment. If this happens, our stockholders will be treated as if they received an actual distribution of the capital gains we retain and reinvested the net after-tax proceeds in us. Stockholders may be eligible to claim a tax credit (or, in certain circumstances, a tax refund) equal to the allocable share of the tax we paid on the capital gains deemed distributed to them. We can offer no assurance that we will achieve results that will permit the payment of any cash distributions and, to the extent that we issue senior securities, we will be prohibited from making distributions if doing so causes us to fail to maintain the asset coverage ratios stipulated by the 1940 Act or if distributions are limited by the terms of any of our borrowings.
The timing and amount of our distributions, if any, will be determined by our Board of Directors and will be declared out of assets legally available for distribution. The following table lists the distributions, including dividends and returns of capital, if any, per share that we have declared since our formation through December 31, 2021. The table is divided by fiscal year according to record date:
Date Declared Record Date Payment Date Amount per Share
Fiscal 2015:
November 4, 2015 (1)
November 16, 2015 December 31, 2015 $ 2.76
Fiscal 2016:
August 3, 2016 (2)
August 16, 2016 August 24, 2016 0.04
Fiscal 2019:
November 5, 2019 (3)
December 2, 2019 December 12, 2019 0.20
December 20, 2019 (4)
December 31, 2019 January 15, 2020 0.12
Fiscal 2020:
July 29, 2020 (5)
August 11, 2020 August 25, 2020 0.15
September 28, 2020 (6)
October 5, 2020 October 20, 2020 0.25
October 28, 2020 (7)
November 10, 2020 November 30, 2020 0.25
December 16, 2020 (8)
December 30, 2020 January 15, 2021 0.22
Fiscal 2021:
January 26, 2021 (9)
February 5, 2021 February 19, 2021 0.25
March 8, 2021 (10)
March 30, 2021 April 15, 2021 0.25
May 4, 2021 (11)
May 18, 2021 June 30, 2021 2.50
August 3, 2021 (12)
August 18, 2021 September 30, 2021 2.25
November 2, 2021 (13)
November 17, 2021 December 30, 2021 2.00
December 20, 2021 (14)
December 31, 2021 January 14, 2022 0.75
Total $ 11.99
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(1) The distribution was paid in cash or shares of our common stock at the election of stockholders, although the total amount of cash distributed to all stockholders was limited to approximately 50% of the total distribution to be paid to all stockholders. As a result of stockholder elections, the distribution consisted of 2,860,903 shares of common stock issued in lieu of cash, or approximately 14.8% of our outstanding shares prior to the distribution, as well as cash of $26,358,885. The number of shares of common stock comprising the stock portion was calculated based on a price of $9.425 per share, which equaled the average of the volume weighted-average trading price per share of our common stock on December 28, 29 and 30, 2015. None of the $2.76 per share distribution represented a return of capital.
(2) Of the total distribution of $887,240 on August 24, 2016, $820,753 represented a distribution from realized gains, and $66,487 represented a return of capital.
(3) All of the $3,512,849 distribution paid on December 12, 2019 represented a distribution from realized gains. None of the distribution represented a return of capital.
(4) All of the $2,107,709 distribution paid on January 15, 2020 represented a distribution from realized gains. None of the distribution represented a return of capital.
(5) All of the $2,516,452 distribution paid on August 25, 2020 represented a distribution from realized gains. None of the distribution represented a return of capital.
(6) All of the $5,071,326 distribution paid on October 20, 2020 represented a distribution from realized gains. None of the distribution represented a return of capital.
(7) All of the $4,978,504 distribution paid on November 30, 2020 represented a distribution from realized gains. None of the distribution represented a return of capital.
(8) All of the $4,381,084 distribution paid on January 15, 2021 represented a distribution from realized gains. None of the distribution represented a return of capital.
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(9) All of the $4,981,131 distribution paid on February 19, 2021 represented a distribution from realized gains. None of the distribution represented a return of capital.
(10) All of the $6,051,304 distribution paid on April 15, 2021 represented a distribution from realized gains. None of the distribution represented a return of capital.
(11) The distribution was paid in cash or shares of our common stock at the election of stockholders, although the total amount of cash distributed to all stockholders was limited to approximately 50% of the total distribution to be paid to all stockholders. As a result of stockholder elections, the distribution consisted of 2,335,527 shares of common stock issued in lieu of cash, or approximately 9.6% of our outstanding shares prior to the distribution, as well as cash of $29,987,589. The number of shares of common stock comprising the stock portion was calculated based on a price of $13.07 per share, which equaled the average of the volume weighted-average trading price per share of our common stock on May 12, 13, and 14, 2021. None of the $2.50 per share distribution represented a return of capital.
(12) The distribution was paid in cash or shares of our common stock at the election of stockholders, although the total amount of cash distributed to all stockholders was limited to approximately 50% of the total distribution to be paid to all stockholders. As a result of stockholder elections, the distribution consisted of 2,225,193 shares of common stock issued in lieu of cash, or approximately 8.4% of our outstanding shares prior to the distribution, as well as cash of $29,599,164. The number of shares of common stock comprising the stock portion was calculated based on a price of $13.55 per share, which equaled the average of the volume weighted-average trading price per share of our common stock on August 11, 12, and 13, 2021. None of the $2.25 per share distribution represented a return of capital.
(13) The distribution was paid in cash or shares of our common stock at the election of stockholders, although the total amount of cash distributed to all stockholders was limited to approximately 50% of the total distribution to be paid to all stockholders. As a result of stockholder elections, the distribution consisted of 2,170,807 shares of common stock issued in lieu of cash, or approximately 7.5% of our outstanding shares prior to the distribution, as well as cash of $28,494,812. The number of shares of common stock comprising the stock portion was calculated based on a price of $13.39 per share, which equaled the average of the volume weighted-average trading price per share of our common stock on November 11, 12, and 13, 2021. None of the $2.00 per share distribution represented a return of capital.
(14) All of the $23,338,915 distribution paid on January 14, 2022 represented a distribution from realized gains. None of the distribution represented a return of capital.
We intend to focus on making equity-based investments from which we will derive primarily capital gains. As a consequence, we do not anticipate that we will pay distributions on a quarterly basis or become a predictable distributor of distributions, and we expect that our distributions, if any, will be much less consistent than the distributions of other BDCs that primarily make debt investments. If there are earnings or realized capital gains to be distributed, we intend to declare and pay a distribution at least annually. The amount of realized capital gains available for distribution to stockholders will be impacted by our tax status.
Our current intention is to make any future distributions out of assets legally available therefrom in the form of additional shares of our common stock under our dividend reinvestment plan, except in the case of stockholders who elect to receive dividends and/or long-term capital gains distributions in cash. Under the dividend reinvestment plan, if a stockholder owns shares of common stock registered in its own name, the stockholder will have all cash distributions (net of any applicable withholding) automatically reinvested in additional shares of common stock unless the stockholder opts out of our dividend reinvestment plan by delivering a written notice to our dividend paying agent prior to the record date of the next dividend or distribution. Any distributions reinvested under the plan will nevertheless be treated as received by the U.S. stockholder for U.S. federal income tax purposes, although no cash distribution has been made. As a result, if a stockholder does not elect to opt out of the dividend reinvestment plan, it will be required to pay applicable federal, state and local taxes on any reinvested dividends even though such stockholder will not receive a corresponding cash distribution. Stockholders that hold shares in the name of a broker or financial intermediary should contact the broker or financial intermediary regarding any election to receive distributions in cash.
So long as we qualify and maintain our tax treatment as a RIC, we generally will not be subject to U.S. federal and state income taxes on any ordinary income or capital gains that we distribute at least annually to our stockholders as dividends. Rather, any tax liability related to income earned by the RIC will represent obligations of our investors and will not be reflected in our consolidated financial statements. See “Note 2—Significant Accounting Policies— U.S. Federal and State Income Taxes ” and “Note 9—Income Taxes” to our consolidated financial statements as of December 31, 2021 for more information. The Taxable Subsidiaries included in our consolidated financial statements are taxable subsidiaries, regardless of whether we are taxed as a RIC. These taxable subsidiaries are not consolidated for income tax purposes and may generate income tax expenses as a result of their ownership of the portfolio companies. Such income tax expenses and deferred taxes, if any, will be reflected in our consolidated financial statements.
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Equity Compensation Plan Information
See “Item 10. Executive Compensation” and “Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.”
Performance Graph
The following graph compares the cumulative total return on our common stock with that of the Standard & Poor’s 500 Stock Index and the Nasdaq Stock Index, as we do not believe there is an appropriate index of companies with an investment strategy similar to our own with which to compare the return on our common stock, for the five years ended December 31, 2021. The graph assumes that, on December 31, 2016, a person invested $100.00 in our common stock, at the closing price of our common stock on December 31, 2016, and in the Standard & Poor’s 500 Stock Index and the Nasdaq Stock Index. The graph measures total stockholder return, which takes into account both changes in stock price and dividends. It assumes that dividends are reinvested in like securities on the respective dividend dates without commissions.
12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21
SSSS $ 100.00 $ 108.35 $ 103.78 $ 136.53 $ 295.76 $ 292.60
S&P 500 Index $ 100.00 $ 119.42 $ 111.97 $ 144.31 $ 167.77 $ 212.89
Nasdaq Stock Index $ 100.00 $ 128.24 $ 123.26 $ 166.68 $ 239.42 $ 290.63
The graph and other information furnished under this Part II, Item 5 of this annual report on Form 10-K shall not be deemed to be “soliciting material” or to be “filed” with the SEC or subject to Regulation 14A or 14C, or to the liabilities of Section 18 of the Exchange Act. The stock price performance included in the above graph is not necessarily indicative of future stock price performance.
Sales of Unregistered Equity Securities
We did not sell any equity securities during the period covered in this report that were not registered under the Securities Act of 1933, as amended.
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Issuer Purchases of Equity Securities (1)
Information relating to the Company’s purchases of its common stock during the year ended December 31, 2021 is as follows:
Period Total
Number of
Shares
Purchased (2)
Average
Price Paid
Per Share Total Number
of Shares
Purchased as
Part of Publicly
Announced
Plans or Programs Approximate
Dollar Value of
Shares that May
Yet Be Purchased
Under the Share
Repurchase
Program
January 1 through January 31, 2021 — $ — — $ 9,617,312
February 1 through February 28, 2021 — — — 9,617,312
March 1 through March 31, 2021 16,610 11.91 — 9,617,312
April 1 through April 30, 2021 — — — 9,617,312
May 1 through May 31, 2021 6,738 14.72 — 9,617,312
June 1 through June 30, 2021 — — — 9,617,312
July 1 through July 31, 2021 — — — 9,617,312
August 1 through August 31, 2021 6,825 15.12 — 9,617,312
September 1 through September 30, 2021 — — — 9,617,312
October 1 through October 31, 2021 — — — 9,617,312
November 1 through November 30, 2021 — — — 9,617,312
December 1 through December 31, 2021 27,460 11.81 — 9,617,312
Total 57,633 —
During the year ended December 31, 2021, we did not repurchase shares of our common stock pursuant to the Share Repurchase Program.
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(1) On August 8, 2017, we announced the $5.0 million discretionary open-market Share Repurchase Program under which our Board of Directors authorized the repurchase of shares of our common stock in the open market until the earlier of (i) August 6, 2018 or (ii) the repurchase of $5.0 million in aggregate amount of our common stock. On November 7, 2017, our Board of Directors authorized an extension of, and an increase in the amount of shares of our common stock that may be repurchased under, the discretionary Share Repurchase Program until the earlier of (i) November 6, 2018 or (ii) the repurchase of $10.0 million in aggregate amount of our common stock. On May 3, 2018, the Company’s Board of Directors authorized an additional $5.0 million increase in the amount of shares of our common stock that may be repurchased under the discretionary Share Repurchase Program until the earlier of (i) November 6, 2018 or (ii) the repurchase of $15.0 million in aggregate amount of our common stock. On November 1, 2018, the Company’s Board of Directors authorized a $5.0 million increase in the amount of shares of the Company’s common stock that may be repurchased under the discretionary Share Repurchase Program until the earlier of (i) October 31, 2019 or (ii) the repurchase of $20.0 million in aggregate amount of the Company’s common stock. On August 5, 2019, our Board of Directors authorized a $5.0 million increase in the amount of shares of our common stock that may be repurchased under the discretionary Share Repurchase Program until the earlier of (i) August 4, 2020 or (ii) the repurchase of $25.0 million in aggregate amount of our common stock. On March 9, 2020, our Board of Directors authorized a $5.0 million increase in the amount of shares of our common stock that may be repurchased under the discretionary Share Repurchase Program until the earlier of (i) March 8, 2021 or (ii) the repurchase of $30.0 million in aggregate amount of our common stock. On October 28, 2020, our Board of Directors authorized a $10.0 million increase in the amount of shares of our common stock that may be repurchased under the discretionary Share Repurchase Program until the earlier of (i) October 31, 2021 or (ii) the repurchase of $40.0 million in aggregate amount of our common stock. On October 27, 2021, our Board of Directors approved an extension of the Share Repurchase Program until the earlier of (i) October 31, 2022 or (ii) the repurchase of $40.0 million in aggregate amount of our common stock. The timing and number of shares to be repurchased will depend on a number of factors, including market conditions and alternative investment opportunities. The Share Repurchase Program may be suspended, terminated or modified at any time for any reason and does not obligate us to acquire any specific number of shares of our common stock. During the year ended December 31, 2021, the Company did not repurchase any shares of the Company's common stock pursuant to the Share Repurchase Program. As of December 31, 2021, the dollar value of shares that remained available to be purchased by the Company under the Share Repurchase Program was approximately $9.6 million.
(2) Includes purchases of our common stock made on the open market by or on behalf of any “affiliated purchaser,” as defined in Exchange Act Rule 10b-18(a)(3), of the Company.
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Senior Securities
Information about our senior securities is shown in the following table as of the end of the last ten fiscal years. There were no senior securities outstanding as of December 31, 2012. The report of our independent registered public accounting firm, Marcum LLP, on the senior securities table, as of December 31, 2021, 2020 and 2019, is attached as an exhibit to this annual report on Form 10-K.
Class and Year Total Amount Outstanding Exclusive of Treasury Securities (1)
Asset Coverage Ratio Per Unit (2)
Involuntary Liquidation Preference Per Unit (3)
Average Market Value Per Unit
6.00% Notes due 2026
Fiscal 2021 (4)
$ 75,000,000 $ 5,865 — $ 25.52
Fiscal 2020 — 8,892 — N/A
Fiscal 2019 — 5,998 — N/A
Fiscal 2018 — 5,884 — N/A
Fiscal 2017 — 3,968 — N/A
Fiscal 2016 — 3,784 — N/A
Fiscal 2015 — 4,884 — N/A
Fiscal 2014 — 4,286 — N/A
Fiscal 2013 — 5,173 — N/A
Fiscal 2012 — — — N/A
4.75% Convertible Senior Notes due 2023
Fiscal 2021 (5)
$ — $ 5,865 — N/A
Fiscal 2020 (5)
38,215,000 8,892 — N/A
Fiscal 2019 40,000,000 5,998 — N/A
Fiscal 2018 40,000,000 5,884 — N/A
Fiscal 2017 — 3,968 — N/A
Fiscal 2016 — 3,784 — N/A
Fiscal 2015 — 4,884 — N/A
Fiscal 2014 — 4,286 — N/A
Fiscal 2013 — 5,173 — N/A
Fiscal 2012 — — — N/A
5.25% Convertible Senior Notes due 2018
Fiscal 2021 (6)
$ — $ 5,865 — N/A
Fiscal 2020 (6)
— 8,892 — N/A
Fiscal 2019 (6)
— 5,998 — N/A
Fiscal 2018 (6)
— 5,884 — N/A
Fiscal 2017 69,000,000 3,968 — N/A
Fiscal 2016 69,000,000 3,784 — N/A
Fiscal 2015 69,000,000 4,884 — N/A
Fiscal 2014 69,000,000 4,286 — N/A
Fiscal 2013 69,000,000 5,173 — N/A
Fiscal 2012 — — — N/A
Credit Facility
Fiscal 2021 $ — $ 5,865 — N/A
Fiscal 2020 — 8,892 — N/A
Fiscal 2019 (7)
— 5,998 — N/A
Fiscal 2018 (7)
— 5,884 — N/A
Fiscal 2017 (7)
— 3,968 — N/A
Fiscal 2016 (8)
— 3,784 — N/A
Fiscal 2015 (8)
— 4,884 — N/A
Fiscal 2014 (8)
18,000,000 4,286 — N/A
Fiscal 2013 — 5,173 — N/A
Fiscal 2012 — — — N/A
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(1) Total gross amount of each class of senior securities outstanding at the end of the period presented, before deduction of discount and debt issuance costs.
(2) Asset coverage per unit for a class of senior securities is the ratio of the carrying value of our total consolidated assets, less all liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior securities representing indebtedness. Asset coverage per unit is expressed in terms of dollar amounts per $1,000 of indebtedness.
(3) The amount to which such class of senior security would be entitled upon the voluntary liquidation of the issuer in preference to any security junior to it. The "—" in this column indicates that the SEC expressly does not require this information to be disclosed for the types of senior securities representing indebtedness issued by the Company as of the stated time periods.
(4) The 6.00% Notes due 2026 were issued on December 17, 2021.
(5) For the year ended December 31, 2020, the Company issued 174,888 shares of its common stock and cash for fractional shares upon the conversion of $1,785,000 in aggregate principal amount of the 4.75% Convertible Senior Notes due 2023. The 4.75% Convertible Senior Notes due 2023 were repaid in full with interest on March 29, 2021.
(6) The 5.25% Convertible Senior Notes due 2018 were repaid in full with interest on September 15, 2018.
(7) Represents amounts under the $12.0 million senior secured revolving Credit Facility with Western Alliance Bank which matured on May 31, 2019.
(8) Represents amounts under the $18.0 million Credit Facility with SVB which matured on December 31, 2016.
Fees and Expenses
The following table is intended to assist you in understanding the costs and expenses that an investor will bear directly or indirectly. We caution you that some of the percentages indicated in the table below are estimates and may vary. The following table should not be considered a representation of our future expenses. Actual expenses may be greater or less than shown. Except where the context suggests otherwise, whenever this Annual Report on Form 10-K contains a reference to fees or expenses paid by “us” or “SuRo Capital,” or that “we” will pay fees or expenses, you will indirectly bear such fees or expenses as an investor in SuRo Capital Corp., however, your responsibility for such fees or expenses is limited to your investment in SuRo Capital Corp. The fee table and example below include all fees and expenses of our consolidated subsidiaries.
Stockholder transaction expenses:
Sales load (as a percentage of offering price) — % (1)
Offering expenses (as a percentage of offering price) — % (2)
Dividend reinvestment plan expenses — % (3)
Total stockholder transaction expenses (as a percentage of offering price) — % (4)
Annual expenses (as a percentage of net assets attributable to common stock) (8) :
Operating expenses 2.41 % (5)
Interest payments on borrowed funds 1.26 % (6)
Other expenses 0.31 % (7)
Total annual expenses 3.98 %
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(1) In the event that our securities are sold to or through underwriters, a corresponding prospectus or prospectus supplement will disclose the applicable sales load.
(2) In the event that we conduct an offering of our securities, a corresponding prospectus or prospectus supplement will disclose the estimated offering expenses. Our common stockholders will bear, directly or indirectly, the expenses of any offering of our securities, including debt securities.
(3) Under our distribution reinvestment plan (the "DRIP"), the plan administrator’s fees will be paid by us. There will be no brokerage charges or other charges to stockholders who participate in the plan except that, if a participant elects by his or its written or telephonic notice to the plan administrator in advance of termination to have the plan administrator sell part or all of his or its shares and remit the proceeds to the participant, the plan administrator is authorized to deduct a $15 transaction fee plus brokerage commission from the proceeds. The expenses of our DRIP are included in “Other Expenses.”
(4) The total stockholder transaction expenses may include sales load and will be disclosed in a future prospectus or prospectus supplement, if any.
(5) Operating expenses in this table represent estimated annual operating expenses based upon the actual annual operating expenses of SuRo Capital Corp. and its consolidated subsidiaries for the year ended December 31, 2021. We do not have an investment adviser and are internally managed by our executive officers under the supervision of our Board of Directors. As a result, we do not pay investment advisory fees, but instead we pay the operating costs associated with employing investment management professionals including, without limitation, compensation expenses related to salaries, discretionary bonuses and restricted stock grants.
(6) We are exposed to the risks of leverage, which may be considered a speculative investment technique. The use of leverage magnifies the potential for gain and loss on amounts invested and, therefore, increases the risks associated with an investment in us. Interest payments on borrowed funds represents our estimated annual interest payments based on actual interest rate terms under our outstanding 6.00% Notes due 2026 as of December 31, 2021.
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(7) "Other expenses," which we calculate to equal approximately $1.1 million, are estimated based upon actual "Other expenses" for the year ended December 31, 2021.
(8) "Net assets attributable to common stock," which we calculate to equal approximately $364.8 million, reflect our net assets for the year ended December 31, 2021.
Example
The following example demonstrates the projected dollar amount of total cumulative expenses that would be incurred over various periods with respect to a hypothetical investment in our common stock. In calculating the following expense amounts, we have assumed that our annual operating expenses would remain at the levels set forth in the table above. See footnote 6 above for additional information regarding certain assumptions regarding our level of leverage.
1 Year 3 Years 5 Years 10 Years
You would pay the following expenses on a $1,000 investment, assuming a 5% annual return $40 $121 $204 $426
The example and the expenses in the tables above should not be considered a representation of our future expenses, and actual expenses may be greater or less than those shown. While the example assumes, as required by the SEC, a 5.0% annual return, our performance will vary and may result in a return greater or less than 5.0%. In addition, while the example assumes reinvestment of all dividends at net asset value participants in our DRIP will receive a number of shares of our common stock, determined by dividing the total dollar amount of the dividend payable to a participant by the market price per share of our common stock at the close of trading on the dividend payment date, which may be at, above or below net asset value. See "Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities - Distributions" for additional information regarding our DRIP.
Item 6. [Reserved]
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