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Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
OPERATING ACTIVITIES    
Net income $ 9,135 $ 6,514
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation of buildings and tenant improvements 10,510 7,743
Amortization of leasing costs, in-place lease intangibles and below market ground rents - operating leases 3,769 2,161
Accrued straight-line rental revenue (557) (837)
Amortization of leasing incentives and above or below-market rents (219) (35)
Amortization of right-of-use assets - finance leases 147 0
Accrued straight-line ground rent expense (6) (3)
Provision for unrealized credit losses 377 0
Adjustment for uncollectable lease accounts 301 128
Noncash stock compensation 1,030 689
Impairment charges 158 0
Noncash interest expense 409 304
Interest expense on finance leases 229 0
Annapolis Junction loan discount amortization [1] 0 (1,118)
Change in fair value of interest rate derivatives 1,736 1,463
Equity in income of unconsolidated real estate entities 0 (273)
Changes in operating assets and liabilities:    
Property assets 1,196 2,591
Property liabilities (4,151) (139)
Construction assets 1,370 (502)
Construction liabilities 2,097 579
Interest receivable (7,224) (3,186)
Net cash provided by operating activities 20,307 16,079
INVESTING ACTIVITIES    
Development of real estate investments (22,892) (41,296)
Tenant and building improvements (2,526) (3,629)
Acquisitions of real estate investments, net of cash received (8,607) (25,792)
Dispositions of real estate investments, net of selling costs 1,442 0
Notes receivable issuances (17,020) (9,668)
Notes receivable paydowns 1,000 1,692
Leasing costs (567) (575)
Contributions to equity method investments 0 (535)
Net cash used for investing activities (49,170) (79,803)
FINANCING ACTIVITIES    
Proceeds from issuance of common stock, net 1,349 30,206
Common shares tendered for tax withholding (534) (344)
Debt issuances, credit facility and construction loan borrowings 62,604 100,327
Debt and credit facility repayments, including principal amortization (7,971) (57,690)
Debt issuance costs (3) (420)
Dividends and distributions (17,373) (13,447)
Net cash provided by financing activities 38,072 58,632
Net increase (decrease) in cash, cash equivalents, and restricted cash 9,209 (5,092)
Cash, cash equivalents, and restricted cash, beginning of period 43,579 24,051
Cash, cash equivalents, and restricted cash, end of period [2] 52,788 18,959
Supplemental Disclosures (noncash transactions):    
Increase in dividends and distributions payable 828 1,130
(Decrease) increase in accrued capital improvements and development costs (3,866) (7,609)
Operating Partnership units redeemed for common shares 0 1,260
Equity method investment redeemed for real estate acquisition 0 23,011
Recognition of operating lease ROU assets 0 32,345
Recognition of operating lease liabilities $ 0 $ 41,632
[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 then-remaining term.
[2] The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Condensed Consolidated Statements of Cash Flows (in thousands):
 
 
March 31, 2020
 
March 31, 2019
Cash and cash equivalents
 
$
48,096

 
$
15,577

Restricted cash (a)
 
4,692

 
3,382

Cash, cash equivalents, and restricted cash
 
$
52,788

 
$
18,959


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