Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

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Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Cash flows from operating activities:      
Net income $ 3,958 $ 3,596 $ (5,902)
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 37,517 35,288 28,864
Impairment charge 2,016 622 14,238
Gain on debt extinguishment 0 0 (5,274)
Gain on sale of real estate, net (242) (1,538) (1,240)
Amortization of deferred financing costs 1,932 1,955 1,656
Amortization of deferred rent asset and liability, net (663) (515) (389)
Tenant inducement payments (115) 0 0
Amortization of discount and premium on assumed debt (175) (314) (267)
Asset retirement obligation expense 148 152 104
Decrease (increase) in other assets 528 (1,185) (265)
Increase in deferred rent receivable (3,423) (4,464) (3,230)
Increase (decrease) in accounts payable, accrued expenses, and amount due Adviser and Administrator 932 (452) 204
(Decrease) increase in other liabilities (385) (43) 857
Leasing commissions paid (867) (1,615) (1,159)
Net cash provided by operating activities 41,161 31,487 28,197
Cash flows from investing activities:      
Acquisition of real estate and related intangible assets (66,570) (77,798) (124,315)
Improvements of existing real estate (5,875) (6,689) (6,347)
Proceeds from sale of real estate 6,431 6,683 11,162
Issuance of mortgage note receivable 0 (300) (5,600)
Collection of mortgage note receivable 5,900 0 0
Receipts from lenders for funds held in escrow 3,728 6,947 2,911
Payments to lenders for funds held in escrow (3,000) (3,385) (8,659)
Receipts from tenants for reserves 3,435 3,429 3,101
Payments to tenants from reserves (3,898) (2,811) (4,298)
Decrease (increase) in restricted cash 1,175 (658) 1,504
Deposits on future acquisitions (2,500) (1,700) (3,050)
Deposits applied against acquisition of real estate investments 2,000 1,800 3,150
Deposits refunded 500 0 0
Net cash used in investing activities (58,674) (74,482) (130,441)
Cash flows from financing activities:      
Proceeds from issuance of equity 118,362 50,165 73,931
Offering costs paid (2,899) (1,066) (3,140)
Retirement of senior common stock (178) 0 0
Redemption of Series C mandatorily redeemable preferred stock (38,500) 0 0
Borrowings under mortgage notes payable 78,705 68,499 52,085
Payments for deferred financing costs (1,500) (1,880) (1,029)
Principal repayments on mortgage notes payable (88,899) (66,714) (8,144)
Principal repayments on employee notes receivable 0 375 0
Proceeds from issuance of term loan facility 0 25,000 0
Borrowings from revolving credit facility 129,400 77,000 98,450
Repayments on revolving credit facility (135,000) (75,000) (79,550)
Increase in security deposits 22 40 57
Distributions paid for common, senior common and preferred stock (42,494) (36,871) (30,363)
Net cash provided by financing activities 17,019 39,548 102,297
Net increase (decrease) in cash and cash equivalents (494) (3,447) 53
Cash and cash equivalents, beginning of period 5,152 8,599 8,546
Cash and cash equivalents, end of period 4,658 5,152 8,599
NON-CASH INVESTING AND FINANCING INFORMATION      
Cash paid during year for interest 25,337 29,259 27,557
Increase in asset retirement obligation assumed in acquisition 0 56 405
Senior common dividend issued in the dividend reinvestment program 0 52 211
Fixed asset additions paid for by tenant 4,879 766 2,031
Capital improvements included in accounts payable and accrued expenses 3,275 4,488 5,510 [1]
Property conveyed in deed in lieu for full satisfaction of mortgage debt payable 0 0 17,343
Security deposit applied to rental income $ 0 $ 0 $ 147
[1] This figure includes a $520 tenant improvement allowance capitalized during the year ended December 31, 2014, which was fully surrendered by the tenant during the year ended December 31, 2015.