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Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
OPERATING ACTIVITIES      
Net income $ 36,959 $ 32,258 $ 23,492
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation of buildings and tenant improvements 43,671 37,839 30,395
Amortization of leasing costs, in-place lease intangibles and below market ground rents - operating leases 16,301 16,725 9,518
Accrued straight-line rental revenue (5,927) (3,402) (2,731)
Amortization of leasing incentives and above or below-market rents (814) (629) (266)
Amortization of right-of-use assets - finance leases 586 377 0
Accrued straight-line ground rent expense 100 (16) 214
Provision for unrealized credit losses 256 0 0
Adjustment for uncollectable accounts 3,842 511 419
Noncash stock compensation 2,378 1,613 1,281
Impairment charges 666 252 1,619
Noncash interest expense 2,204 1,258 1,116
Interest expense on finance leases 915 568 0
Gain on real estate dispositions (6,388) (4,699) (4,254)
Adjustment for Annapolis Junction modification fee [1] 0 (4,489) 4,489
Change in the fair value of interest rate derivatives 1,130 3,599 951
Equity in income of unconsolidated real estate entities 0 (273) (372)
Changes in operating assets and liabilities:      
Property assets (5,960) (2,499) (3,539)
Property liabilities 5,762 3,368 1,720
Construction assets (2,302) (20,356) 7,554
Construction liabilities 13,708 18,671 (15,248)
Interest receivable (15,908) (12,947) (271)
Net cash provided by operating activities 91,179 67,729 56,087
INVESTING ACTIVITIES      
Development of real estate investments (63,485) (133,445) (133,791)
Tenant and building improvements (10,077) (19,721) (11,723)
Acquisitions of real estate investments, net of cash received (35,151) (138,380) (57,544)
Dispositions of real estate investments, net of selling costs 96,459 32,944 34,673
Notes receivable issuances (24,484) (54,555) (58,208)
Notes receivable paydowns 16,340 22,522 1,165
Leasing costs (3,425) (3,893) (4,607)
Leasing incentives (1,326) 0 (108)
Contributions to equity method investments (1,078) (535) (10,420)
Net cash used for investing activities (26,227) (295,063) (240,563)
FINANCING ACTIVITIES      
Proceeds from issuance of cumulative redeemable perpetual preferred stock, net 101,460 61,001 0
Proceeds from issuance of common stock, net 19,650 96,845 65,244
Common shares tendered for tax withholding (569) (369) (409)
Debt issuances, credit facility and construction loan borrowings 176,619 427,286 349,580
Debt and credit facility repayments, including principal amortization (299,318) (270,851) (173,855)
Debt issuance costs (609) (5,546) (1,457)
Acquisition of NCI in consolidated RE investments (5,002) 0 0
Redemption of operating partnership units (2,729) 0 (2,595)
Dividends and distributions (47,603) (61,504) (50,897)
Net cash provided by (used for) financing activities (58,101) 246,862 185,611
Net increase in cash, cash equivalents, and restricted cash 6,851 19,528 1,135
Cash, cash equivalents, and restricted cash, beginning of period [2] 43,579 24,051 22,916
Cash, cash equivalents, and restricted cash, end of period [2] 50,430 43,579 24,051
Supplemental cash flow information:      
Cash paid for interest 28,554 28,878 17,319
Cash refunded for income taxes 167 247 31
Increase (decrease) in dividends payable (5,724) 3,950 1,640
Common shares and OP units issued for acquisitions 6,099 73,169 1,702
(Decrease) increase in accrued capital improvements and development costs (14,324) (12,666) 18,310
Operating Partnership units redeemed for common shares 8,866 2,756 3,715
Note payable recorded for mandatorily redeemable partnership interest 3,829 0 0
Debt assumed at fair value in conjunction with real estate purchases 122,300 101,390 0
Note receivable extinguished in conjunction with real estate purchase 42,270 31,252 0
Equity method investment redeemed for real estate acquisition 0 23,011 0
Noncontrolling interest in acquired real estate entity 0 4,870 0
Note payable issued in acquisition of noncontrolling interest in real estate investment 6,130 0 0
Recognition of operating lease ROU assets [3] 0 33,965 0
Recognition of operating lease liabilities [3] 0 41,631 0
Recognition of finance lease right-of-use assets 0 24,500 0
Recognition of finance lease liabilities 0 17,871 0
De-recognition of operating lease ROU assets - lease termination 0 440 0
De-recognition of operating lease liabilities - lease termination $ 0 $ 440 $ 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,
 20202019
Cash and cash equivalents$40,998 $39,232 
Restricted cash (a)
9,432 4,347 
Cash, cash equivalents, and restricted cash$50,430 $43,579 
(a) Restricted cash represents amounts held by lenders for real estate taxes, insurance, and reserves for capital improvements.
[3] Amounts attributable to 2019 are net of $0.4 million related to the Company's preexisting lease at the Thames Street Wharf property, which was acquired on June 26, 2019.