Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

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Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Cash flows from operating activities:      
Net income $ 9,541,000 $ 12,324,000 $ 5,937,000
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 52,039,000 47,620,000 42,795,000
Impairment charge 1,813,000 0 6,835,000
Gain on sale of real estate, net (2,952,000) (2,763,000) (3,993,000)
Amortization of deferred financing costs 1,641,000 1,445,000 1,713,000
Amortization of deferred rent asset and liability, net (1,446,000) (728,000) (851,000)
Amortization of discount and premium on assumed debt, net 62,000 (20,000) (99,000)
Asset retirement obligation expense 119,000 121,000 125,000
Bad debt expense 152,000 0 0
(Increase) decrease in other assets (2,170,000) (445,000) (1,866,000)
Increase in deferred rent receivable (1,477,000) (2,548,000) (3,077,000)
(Decrease) increase in accounts payable, accrued expenses, and amount due to Adviser and Administrator 1,921,000 749,000 (524,000)
Decrease in right-of-use asset from operating leases 204,000 0 0
Decrease in operating lease liabilities (151,000) 0 0
Increase (decrease) in other liabilities 2,075,000 246,000 521,000
Tenant inducement payments 0 0 (122,000)
Leasing commissions paid (1,177,000) (402,000) (552,000)
Net cash provided by operating activities 60,194,000 55,599,000 46,842,000
Cash flows from investing activities:      
Acquisition of real estate and related intangible assets (130,313,000) (42,353,000) (120,978,000)
Improvements of existing real estate (7,570,000) (4,328,000) (9,216,000)
Proceeds from sale of real estate 6,318,000 12,835,000 29,499,000
Receipts from lenders for funds held in escrow 2,664,000 1,769,000 7,302,000
Payments to lenders for funds held in escrow (3,880,000) (2,376,000) (5,899,000)
Receipts from tenants for reserves 4,782,000 2,682,000 2,093,000
Payments to tenants from reserves (2,496,000) (2,669,000) (2,666,000)
Deposits on future acquisitions (5,952,000) (1,590,000) (3,150,000)
Deposits applied against acquisition of real estate investments 4,410,000 1,590,000 3,150,000
Net cash used in investing activities (132,037,000) (34,440,000) (99,865,000)
Cash flows from financing activities:      
Proceeds from issuance of equity 134,527,000 18,565,000 86,260,000
Offering costs paid (3,431,000) (295,000) (2,190,000)
Retirement of senior common stock 0 (34,000) (24,000)
Redemption of Series A and B perpetual preferred stock (56,600,000) 0 0
Borrowings under mortgage notes payable 69,650,000 14,125,000 51,208,000
Payments for deferred financing costs (2,480,000) (386,000) (1,990,000)
Principal repayments on mortgage notes payable (57,438,000) (27,850,000) (60,080,000)
Proceeds from issuance of term loan facility 47,300,000 0 50,000,000
Borrowings from revolving credit facility 165,400,000 88,600,000 116,900,000
Repayments on revolving credit facility (163,600,000) (59,400,000) (135,200,000)
(Decrease) increase in security deposits (192,000) 83,000 (61,000)
Distributions paid for common, senior common, preferred stock and Non-controlling OP Unitholders (58,887,000) (54,565,000) (50,408,000)
Net cash provided by (used in) financing activities 74,249,000 (21,157,000) 54,415,000
Net increase in cash, cash equivalents, and restricted cash 2,406,000 2,000 1,392,000
Cash, cash equivalents, and restricted cash at beginning of period 9,082,000 9,080,000 7,688,000
Cash, cash equivalents, and restricted cash at end of period 11,488,000 9,082,000 9,080,000
SUPPLEMENTAL NON-CASH INFORMATION      
Cash paid during year for interest 25,685,000 24,987,000 22,352,000
Tenant funded fixed asset improvements 2,787,000 1,608,000 3,018,000
Assumed mortgage in connection with acquisition 0 6,918,000 11,179,000
Assumed interest rate swap fair market value 0 0 42,000
Reserves released by title company to tenant 0 3,966,000 0
Capital improvements and leasing commissions included in accounts payable and accrued expenses 390,000 311,000 1,495,000
Assumed tenant improvement allowance in connection with acquisition 0 0 3,966,000
Unrealized (loss) gain related to interest rate hedging instruments, net (1,978,000)    
Unrealized (loss) gain related to interest rate hedging instruments, net   (183,000) 35,000
Non-controlling OP Units issued in connection with acquisition 0 13,975,000 0
Increase in asset retirement obligation assumed in acquisition 164,000 0 0
Series A and B Preferred Stock offering cost write off 2,674,000 0 0
Right-of-use asset from operating leases 5,998,000 0 0
Operating lease liabilities (5,998,000) 0 0
Property manager other assets 1,676,000 0 0
Property manager accrued expenses and other liabilities $ (1,676,000) $ 0 $ 0