We understand the importance of accessing capital quickly and will attempt to honor all redemption requests consistent with our Share Repurchase Program and the limitations described below. The restrictions below have been developed considering several factors, including that real estate, is an illiquid asset and that stockholders could be adversely affected by excess redemption requests of other stockholders. Investors with short-term horizons or who may need to sell an asset to raise money quickly should consider purchasing investments with greater liquidity.
Share repurchases are limited to an annual aggregate repurchase of no more than than 20% of the weighted average number of shares of common stock outstanding during the previous fiscal year and, semi-annually, to not more than 10% of the weighted average number of shares of common stock outstanding during the previous fiscal year.
All share repurchases will be subject to availability of capital and may come from various sources including, but not limited to, cash proceeds generated from the dividend reinvestment plan, securities offerings, operating cash flow not intended for dividends, or borrowings and capital transactions, such as asset sales or refinancing proceeds. Additionally, the amount of cash available for redemptions may be limited due to the payment of cash dividends on our shares, as described above.
Our board of directors will have the flexibility to determine the allocation of available cash available as between the payment of dividends and redemption of our shares.