Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

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Consolidated Statements of Cash Flows (USD $)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net income $ (1,224,683) $ 600,373 $ 6,219
Adjustments to reconcile net income to net cash (used in) provided by operating activities:      
Depreciation and amortization 722,455 474,480 505,568
Amortization of deferred financing fees 30,024 59,472 26,368
Amortization of deferred rent assets and liabilities, net (68,617) (45,852)  
Deferred income taxes (743,676) 568,675 (173,657)
Loss on early extinguishment of debt     474,454
Changes in operating assets and liabilities:      
Other assets 25,205 (609,131) 517,790
Accounts payable, accrued expenses, and due to related parties 250,139 235,090 81,033
Other liabilities 548,800 (145,330) 460,317
Net cash (used in) provided by operating activities (460,353) 1,137,777 1,898,092
CASH FLOWS FROM INVESTING ACTIVITIES:      
Acquisition of new real estate (37,871,978) (7,499,644) (13,071,774)
Capital expenditures on existing real estate (811,605)    
(Increase) decrease in restricted cash (41)   8,367,902
Purchase of certificate of deposit   (679,717)  
Purchase of U.S. Treasuries (19,994,981)    
Maturity of U.S. Treasuries 20,000,000    
Deposits on future acquisitions (200,000) (150,000) (50,000)
Deposits refunded 150,000 200,000  
Net cash used in investing activities (38,728,605) (8,129,361) (4,753,872)
CASH FLOWS FROM FINANCING ACTIVITIES:      
Proceeds from issuance of equity 56,703,960    
Offering costs (4,687,579) (686,339)  
Borrowings from mortgage notes payable 13,565,000 8,707,000 17,428,000
Repayments on mortgage notes payable (1,228,715) (917,120) (11,673,328)
Borrowings from line of credit 1,600,000 3,100,000 1,200,000
Repayments on line of credit (1,600,000) (4,205,000) (3,000,028)
Financing fees (35,807) (137,337) (48,531)
Distributions paid (9,730,093)   (1,017,499)
Net cash provided by financing activities 54,586,766 5,861,204 2,888,614
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 15,397,808 (1,130,380) 32,834
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 873,474 2,003,854 1,971,020
CASH AND CASH EQUIVALENTS AT END OF PERIOD 16,271,282 873,474 2,003,854
Cash paid during year for interest 1,055,333 854,876 443,543
Cash paid during year for income taxes 2,274,727 [1] 464,772 [1] 150,563 [1]
NON-CASH OPERATING, INVESTING AND FINANCING INFORMATION:      
Offering costs included in accounts payable and accrued expenses   319,756  
Additions to real estate included in accounts payable and accrued expenses $ 309,174    
[1] Includes a $2.1 million tax prepayment made related to a deferred intercompany gain on a prior-year land transfer.