CONSOLIDATED STATEMENTS OF CASH FLOWS 19 For the Year Ended December 31, (In thousands) 2004 2003 2002 Cash flows from operating activities Net income $ 26,174 $ 19,242 $ 19,566 Adjustments to reconcile net income to  net cash provided by operating activities: Gain on sale of property (572) (182) (1,426) Minority interests 8,105 8,086 8,070 Depreciation and amortization 21,324 17,838 17,821 Amortization of deferred debt 929 801 725 Provision for credit losses 488 171 421 Increase in accounts receivable and accrued income (6,500) (2,308) (3,709) Increase in leasing costs (2,266) (2,303) (848) Decrease (increase) in prepaid expenses 188 (3,250) (6,458) (Increase) decrease in other assets (355) 171 15 Increase (decrease) in accounts payable,  accrued expenses and other liabilities 1,630 (897) 1,717 Increase (decrease) in deferred income 1,566 (6) 475 Net cash provided by operating activities 50,711 37,363 36,369 Cash flows from investing activities Acquisitions of real estate investments, net* (79,105) (26,375) (29,226) Additions to real estate investments (6,425) (7,709) (3,382) Additions to development and redevelopment activities (29,366) (15,317) (8,987) Proceeds from sale of assets 833  280  1,426  Net cash used in investing activities (114,063) (49,121) (40,169) Cash flows from financing activities Proceeds from mortgage notes payable 94,800 93,134 991 Repayments on mortgage notes payable (16,427) (69,879) (6,624) Proceeds from revolving credit facility 33,000  35,000  44,750  Repayments on revolving credit facility (33,000) (81,750) (18,000) Additions to deferred debt expense (1,716) (900) (1,287) Proceeds from the issuance of preferred stock,  net of issuance costs -- 96,327 -- Proceeds from the issuance of common stock and convertible limited partnership units in the  Operating Partnership 15,422  16,018  14,574  Distributions to preferred stockholders (7,244) --  --  Distributions to common stockholders and holders  of convertible limited partnership units in the  Operating Partnership (33,166) (32,257) (31,100) Net cash provided by financing activities 51,669  55,693  3,304  Net (decrease) increase in cash and cash equivalents (11,683) 43,935  (496) Cash and cash equivalents, beginning of year 45,244  1,309  1,805  Cash and cash equivalents, end of year $ 33,561  $ 45,244 $ 1,309 Supplemental disclosures of cash flow information: Cash paid for interest $ 28,682 $ 26,878 $ 25,637  * Supplemental discussion of non-cash investing and financing activities: The $79,105,000 shown as 2004 real estate acquisitions does not include $18,025,000 in total assumed mortgages for 2 of the properties acquired as the assumption of these mortgages was a non-cash acquisition cost. On February 13, 2004, the Company purchased Boca Valley Plaza for an acquisition cost of $17,678,000 and assumed a mortgage in the amount of $9,200,000 with the balance being paid in cash. On March 25, 2004, the Company purchased Cruse MarketPlace for an acquisition cost of $12,897,000 and assumed a mortgage of $8,825,000 with the balance being paid in cash. For 2002, the $29,226,000 figure does not include $7,806,000 in an assumed mortgage of an acquisition cost of $14,300,000 on September 8, 2002 of the Company’s Kentlands Square property with the balance being paid in cash. The accompanying notes are an integral part of these statements.