Consolidated Statements of Cash Flows Dollars in thousands The accompanying notes are an integral part of these statements. 47 2003 annual report For the Twelve Months Ended December 31,  2003 2002  2001 (Note 2)  (Note 2) CASH FLOWS FROM OPERATING ACTIVITIES: Net income $  368,715 $  422,588 $  199,149 Adjustments to reconcile net income to net cash provided by  operating activities— Depreciation and amortization  518,560 491,306 464,892 Impairment on investment properties  — — 47,000 Gain from debt related transactions, net  —  (14,307 )  (273 ) Cumulative effect of accounting change  — — 1,700 (Gain) Loss on sales of assets and other, net  5,146  (162,011 )  (2,610 ) Gain on disposal or sale of discontinued operations, net  (22,394 ) — — Limited partners’ interest in the Operating Partnership  100,956 127,727 55,526 Preferred dividends of Subsidiary  — — 14,668 Preferred distributions of the Operating Partnership  12,044 11,340 11,417 Straight-line rent  (3,630 ) (6,785 )  (11,014 ) Minority interest  7,277 10,498 10,593 Minority interest distributions  (5,466 ) (13,214 )  (16,629 ) Equity in income of unconsolidated entities  (99,645 ) (60,069 )  (64,377 ) Distributions of income from unconsolidated entities  87,453 80,141 71,878 Changes in assets and liabilities— Tenant receivables and accrued revenue  34,277 14,237 2,335 Deferred costs and other assets  (26,396 ) (15,778 )  (37,932 ) Accounts payable, accrued expenses, deferred revenues  and other liabilities  (24,930 ) (2,683 )  112,739 Net cash provided by operating activities 951,967 882,990 859,062 CASH FLOWS FROM INVESTING ACTIVITIES: Acquisitions  (814,629 ) (1,129,139 )  (164,295 ) Capital expenditures, net  (353,903 ) (213,990 )  (282,545 ) Cash from acquisitions  2,267 8,516 8,004 Cash from consolidation of the Management Company  48,910 — — Net proceeds from sale of assets, partnership interests, and discontinued operations  278,066 436,350 19,550 Investments in unconsolidated entities  (81,480 ) (90,113 )  (147,933 ) Distributions of capital from unconsolidated entities and other  159,106 191,314 217,082 Notes and advances to Management Company and affiliate  — 11,332 (1,173 ) Net cash used in investing activities (761,663  )  (785,730 )  (351,310 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from sales of common and preferred stock  99,725 341,445 8,085 Purchase of preferred stock and limited partner units  (93,954 ) — — Minority interest contributions  — 779 2,647 Preferred dividends of Subsidiary  — — (14,668 ) Preferred distributions of the Operating Partnership  (12,044 ) (11,340 )  (11,417 ) Preferred dividends and distributions to shareholders  (507,569 ) (457,085 )  (428,968 ) Distributions to limited partners  (147,492 ) (138,789 )  (134,711 ) Mortgage and other note proceeds, net of transaction costs  2,536,498 2,408,685 2,454,994 Mortgage and other note principal payments  (1,926,974 ) (2,103,586 )  (2,347,065 ) Net cash provided by (used in) financing activities (51,810 ) 40,109 (471,103 ) INCREASE IN CASH AND CASH EQUIVALENTS 138,494 137,369 36,649 CASH AND CASH EQUIVALENTS, beginning of period 397,129 259,760 223,111 CASH AND CASH EQUIVALENTS, end of period $ 535,623 $  397,129 $  259,760