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Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
OPERATING ACTIVITIES      
Net income $ 32,258 $ 23,492 $ 29,925
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation of buildings and tenant improvements 37,839 30,395 25,974
Amortization of leasing costs, in-place lease intangibles and below market ground rents - operating leases 16,725 9,518 11,347
Accrued straight-line rental revenue (3,402) (2,731) (1,222)
Amortization of leasing incentives and above or below-market rents (629) (266) (195)
Amortization of right-of-use assets - finance leases 377    
Accrued straight-line ground rent expense (16) 214 530
Adjustment for uncollectable accounts 511 419 564
Noncash stock compensation 1,613 1,281 1,323
Impairment charges 252 1,619 110
Noncash interest expense 1,258 1,116 1,274
Interest expense on finance leases 568 0 0
Gain on real estate dispositions (4,699) (4,254) (8,087)
Adjustment for Annapolis Junction purchase option [1] (4,489) 4,489 0
Change in the fair value of interest rate derivatives 3,599 951 (1,127)
Equity in income of unconsolidated real estate entities (273) (372) 0
Changes in operating assets and liabilities:      
Property assets (2,499) (3,539) (2,415)
Property liabilities 3,368 1,720 2,843
Construction assets (20,356) 7,554 17,573
Construction liabilities 18,671 (15,248) (20,110)
Interest receivable (12,947) (271) (7,071)
Net cash provided by operating activities 67,729 56,087 51,236
INVESTING ACTIVITIES      
Development of real estate investments (133,445) (133,791) (45,730)
Tenant and building improvements (19,721) (11,723) (12,252)
Acquisitions of real estate investments, net of cash received (138,380) (57,544) (30,026)
Dispositions of real estate investments, net of selling costs 32,944 34,673 12,557
Notes receivable issuances (54,555) (58,208) (16,219)
Notes receivable paydowns 22,522 1,165 0
Leasing costs (3,893) (4,607) (2,235)
Leasing incentives 0 (108) (274)
Contributions to equity method investments (535) (10,420) (1,176)
Net cash used for investing activities (295,063) (240,563) (95,355)
FINANCING ACTIVITIES      
Proceeds from issuance of cumulative redeemable perpetual preferred stock, net 61,001 0 0
Proceeds from issuance of common stock, net 96,845 65,244 91,381
Common shares tendered for tax withholding (369) (409) (289)
Debt issuances, credit facility and construction loan borrowings 427,286 349,580 162,585
Debt and credit facility repayments, including principal amortization (270,851) (173,855) (160,661)
Debt issuance costs (5,546) (1,457) (2,403)
Redemption of operating partnership units 0 (2,595) (5,155)
Dividends on cumulative redeemable perpetual preferred stock (61,504) (50,897) (43,616)
Net cash provided by financing activities 246,862 185,611 41,842
Net increase (decrease) in cash, cash equivalents, and restricted cash 19,528 1,135 (2,277)
Cash, cash equivalents, and restricted cash, beginning of period [2] 24,051 22,916 25,193
Cash, cash equivalents, and restricted cash, end of period [2] 43,579 24,051 22,916
Supplemental cash flow information:      
Cash paid for interest 28,878 (17,319) (16,318)
Cash refunded (paid) for income taxes 247 31 (371)
Increase in dividends payable 3,950 1,640 2,160
Common shares and OP units issued for acquisitions [3] 73,169 1,702 506
(Decrease) increase in accrued capital improvements and development costs 12,666 (18,310) (10,899)
Operating Partnership units redeemed for common shares 2,756 3,715 0
Debt principal extinguished in conjunction with real estate sales 0 0 5,594
Debt assumed at fair value in conjunction with real estate purchases 101,390 0 0
Debt assumed at fair value in conjunction with real estate purchases 0 0 2,000
Redeemable noncontrolling interest from development 0 0 600
Note receivable extinguished in conjunction with real estate purchase 31,252 0 0
Equity method investment redeemed for real estate acquisition 23,011 0 0
Noncontrolling interest in acquired real estate entity 4,870 0 0
Recognition of operating lease ROU assets [4] 33,965 0 0
Recognition of operating lease liabilities [4] 41,631 0 0
Recognition of finance lease ROU assets 24,500 0 0
Recognition of finance lease liabilities 17,871 0 0
De-recognition of operating lease ROU assets - lease termination 440 0 0
De-recognition of operating lease liabilities - lease termination $ 440 $ 0 $ 0
[1] Borrower paid $5.0 million in 2018 in exchange for the Company's purchase option. This was accounted for as a loan modification fee; interest income was recognized as additional interest income on the note receivable over the one-year remaining term.
[2] The following table sets forth the items from the Company's Consolidated Balance Sheets that are included in cash, cash equivalents, and restricted cash in the consolidated statements of cash flows:
 
As of December 31,
 
2019
 
2018
Cash and cash equivalents
$
39,232

 
$
21,254

Restricted cash (a)
4,347

 
2,797

Cash, cash equivalents, and restricted cash
$
43,579

 
$
24,051


(a) Restricted cash represents amounts held by lenders for real estate taxes, insurance, and reserves for capital improvements.

[3] 2017 issuance consists of OP Units contingently issuable upon the satisfaction of certain conditions relating to the Johns Hopkins Village property. These OP Units were issued in 2018.
[4] Net of $0.4 million disposal related to the Company's preexisting lease at the Thames Street Wharf property, which was acquired on June 26, 2019.