On July 7, 2008, Cornerstone Growth & Income REIT, Inc. filed an 8-k disclosing the board of directors’ declaration of a daily dividend. The text of the 8-k follows:
On July 7, 2008, our board of directors declared a daily dividend on our common stock commencing on the date that we accept subscriptions for the purchase of the minimum offering amount of 100,000 shares of our common stock. The dividends will be calculated based on stockholders of record each day during the period from the initial subscription acceptance date through September 30, 2008 at a rate of $0.00205 per share per day. The dividends will equal a daily amount that, if paid each day for a 365-day period, would equate to a 7.5% annualized rate based on a purchase price of $10.00 per share. The dividends will be paid on the 15th day following the end of the month that includes the last daily record date for the declared dividend. Investors may choose to receive cash distributions or purchase additional shares through our distribution reinvestment plan.
We do not own any properties as of the date of this report, and have not yet identified a property or other interest in real estate to acquire upon breaking escrow. Until proceeds from our offering are invested and generating operating cash flow sufficient to make distributions to stockholders, we intend to pay all or a substantial portion of our distributions from the proceeds of our offering or from borrowings in anticipation of future cash flow.
