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INTERIM CONSOLIDATED FINANCIAL STATEMENTS STATEMENTS OF CASH FLOW
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2016
USD ($)
Sep. 30, 2017
USD ($)
Sep. 30, 2016
USD ($)
Cash flow from operating activities:      
Net income $ 6,538 $ 17,570 $ 19,204
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization   100,455 88,767
Amortization of above and below market leases 300 699 337
Amortization of deferred loan costs   2,737 2,424
Amortization of senior notes discount   206 194
Equity-based compensation expense   10,507 7,887
Bad debt expense   1,750 1,201
Deferred tax benefit   (5,371) (9,298)
Changes in operating assets and liabilities      
Rents and other receivables, net   (7,518) (9,191)
Prepaid expenses   (291) (2,854)
Other assets   (367) (967)
Accounts payable and accrued liabilities   (4,145) 3,359
Advance rents, security deposits and other liabilities   3,480 984
Deferred income   547 1,448
Net cash provided by operating activities   120,259 103,495
Cash flow from investing activities:      
Acquisitions, net of cash acquired   47,013 122,981
Additions to property and equipment   (236,971) (197,751)
Net cash used in investing activities   (283,984) (320,732)
Cash flow from financing activities:      
Credit facility proceeds   221,000 267,000
Debt repayment   (81,000) (259,002)
Debt proceeds   1,920  
Payment of deferred financing costs   (200) (35)
Payment of cash dividends   (54,919) (45,371)
Distribution to noncontrolling interests   (7,732) (7,189)
Proceeds from exercise of stock options   4,948 859
Payment of tax withholdings related to equity based awards   (3,310) (2,111)
Principal payments on capital lease obligations   (9,865) (9,612)
Mortgage principal debt repayments   (38)  
Equity proceeds, net of issuance costs   92,612 275,663
Net cash provided by financing activities   163,416 220,202
Net increase/(decrease) in cash and cash equivalents   (309) 2,965
Cash and cash equivalents, beginning of period   9,580 8,804
Cash and cash equivalents, end of period 11,769 9,271 11,769
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION      
Cash paid for interest (excluding deferred financing costs and amounts capitalized)   22,759 18,659
Noncash investing and financing activities:      
Accrued capital additions   28,368 40,344
Accrued deferred financing costs   8  
Increase in other liabilities related to change in fair value of interest rate swaps   1,785  
Accrued equity issuance costs   26  
Acquisitions, net of cash acquired:      
Land 7,440 5,019 7,440
Buildings, improvements and equipment 80,390   80,390
Construction in Progress 13,900 41,994 13,900
Rents and other receivables, net (2,033)   (2,033)
Acquired intangibles 34,281   34,281
Deferred costs 4,391   4,391
Prepaid expenses 479   479
Goodwill     (7,895)
Other assets 303   303
Accounts payable and accrued liabilities (922)   (922)
Advance rents, security deposits and other liabilities (1,343)   (1,343)
Deferred income 35   35
Deferred income taxes (6,045)   (6,045)
Total acquisitions, net of cash acquired   47,013 122,981
Qualitytech, LP      
Cash flow from operating activities:      
Net income 6,538 17,570 19,204
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization   100,455 88,767
Amortization of above and below market leases   699 337
Amortization of deferred loan costs   2,737 2,424
Amortization of senior notes discount   206 194
Equity-based compensation expense   10,507 7,887
Bad debt expense   1,750 1,201
Deferred tax benefit   (5,371) (9,298)
Changes in operating assets and liabilities      
Rents and other receivables, net   (7,518) (9,191)
Prepaid expenses   (291) (2,854)
Other assets   (367) (967)
Accounts payable and accrued liabilities   (4,145) 3,359
Advance rents, security deposits and other liabilities   3,480 984
Deferred income   547 1,448
Net cash provided by operating activities   120,259 103,495
Cash flow from investing activities:      
Acquisitions, net of cash acquired   47,013 122,981
Additions to property and equipment   (236,971) (197,751)
Net cash used in investing activities   (283,984) (320,732)
Cash flow from financing activities:      
Credit facility proceeds   221,000 267,000
Debt repayment   (81,000) (259,002)
Debt proceeds   1,920  
Payment of deferred financing costs   (200) (35)
Payment of cash dividends   (54,919) (45,371)
Partnership distributions   (7,732) (7,189)
Proceeds from exercise of stock options   4,948 859
Payment of tax withholdings related to equity based awards   (3,310) (2,111)
Principal payments on capital lease obligations   (9,865) (9,612)
Mortgage principal debt repayments   (38)  
Equity proceeds, net of issuance costs   92,612 275,663
Net cash provided by financing activities   163,416 220,202
Net increase/(decrease) in cash and cash equivalents   (309) 2,965
Cash and cash equivalents, beginning of period   9,580 8,804
Cash and cash equivalents, end of period 11,769 9,271 11,769
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION      
Cash paid for interest (excluding deferred financing costs and amounts capitalized)   22,759 18,659
Noncash investing and financing activities:      
Accrued capital additions   28,368 40,344
Accrued deferred financing costs   8  
Increase in other liabilities related to change in fair value of interest rate swaps   1,785  
Accrued equity issuance costs   26  
Acquisitions, net of cash acquired:      
Land 7,440 5,019 7,440
Buildings, improvements and equipment 80,390   80,390
Construction in Progress 13,900 41,994 13,900
Rents and other receivables, net (2,033)   (2,033)
Acquired intangibles 34,281   34,281
Deferred costs 4,391   4,391
Prepaid expenses 479   479
Goodwill     (7,895)
Other assets 303   303
Accounts payable and accrued liabilities (922)   (922)
Advance rents, security deposits and other liabilities (1,343)   (1,343)
Deferred income 35   35
Deferred income taxes $ (6,045)   (6,045)
Total acquisitions, net of cash acquired   $ 47,013 $ 122,981