Page 25 - Apple REIT 9 2008 Annual Report

15
Use of Proceeds
The following tables set forth information concerning the best-efforts offering and the use of proceeds from the offering as of
December 31, 2008. All amounts are in thousands except per Unit data.
Units Registered:
9,524 Units $ 10.50 per Unit $ 100,000
172,727 Units $ 11.00 per Unit 1,900,000
Totals: .......................................................................... 182,251 Units $ 2,000,000
Units Sold:
9,524 Units $ 10.50 per Unit $ 100,000
31,490 Units $ 11.00 per Unit 346,387
Totals: .......................................................................... 41,014 Units $ 446,387
Expenses of Issuance and Distribution of Units
1. Underwriting discounts and commission ..................................................................................................... $ 44,639
2. Expenses of underwriters ............................................................................................................................. —
3. Direct or indirect payments to directors or officers of the Company or their associates,
to ten percent shareholders, or to affiliates of the Company ......................................................................... —
4. Fees and expenses of third parties ................................................................................................................ 1,205
Total Expenses of Issuance and Distribution of Common Shares .......................................................................... 45,844
Net Proceeds to the Company ..................................................................................................................................... $ 400,543
1. Purchase of real estate (net of debt proceeds and repayment) . ..................................................................... 305,576
2. Deposits and other costs associated with potential real estate acquisitions ................................................. 4,176
3. Repayment of other indebtedness, including interest expense paid ............................................................. 448
4. Investment and working capital . .................................................................................................................. 82,738
5. Fees to the following (all affiliates of officers of the Company):
a. Apple Nine Advisors, Inc. .................................................................................................................. 781
b. Apple Suites Realty Group, Inc. ........................................................................................................ 6,824
6. Fees and expenses of third parties ................................................................................................................ —
7. Other ............................................................................................................................................................. —
Total of Application of Net Proceeds to the Company ................................................................................................ $ 400,543
Item 6. Selected Financial Data
The following table sets forth selected financial data for the period November 9, 2007 (initial capitalization) through December
31, 2007 and the year ended December 31, 2008. Certain information in the table has been derived from the Company’s audited
financial statements and notes thereto. This data should be read in conjunction with Item 7, Management’s Discussion and Analysis of
Financial Condition and Results of Operations, and Item 15(1), the Consolidated Financial Statements and Notes thereto, appearing
elsewhere in this Annual Report on Form 10-K. During the period from the Company’s initial capitalization on November 9, 2007 to
July 30, 2008, the Company owned no properties, had no revenue exclusive of interest income, and was primarily engaged in capital
formation activities. Operations commenced on July 31, 2008 with the Company’s first property acquisition.