our portfolio consists of 15 properties contributed by the easterly funds and 14 properties contributed by western devcon in the formation transactions which occurred concurrently with the completion of our initial public offering on february 11 , 2015. financial information analyzed below reflects the audited predecessor financial statements as of december 31 , 2014 , included in the f pages of this annual report on form 10-k. we have not included for the 14 properties acquired from western devcon inc. in this discussion and analysis of our financial conditions and results of operations since they were not owned by our predecessor on december 31 , 2014 and are not reflected in the financial statements attached here to . our predecessor the term our predecessor refers to easterly partners , llc and its consolidated subsidiaries , including the easterly funds , which held 100 % of the fee interests in the entities that owned 15 of the properties , or the property-owning subsidiaries , that were contributed to us in the formation transactions , as well as the management entities . prior to our initial public offering the easterly funds used investment company accounting and , accordingly , account for their investments on a fair value basis , as reflected in the consolidated financial statements of our predecessor . going forward we will account for the properties owned by the easterly funds using historical cost accounting instead of investment company accounting . moving from investment company accounting to historical cost accounting will result in a significant change in the presentation of our consolidated financial statements following the formation transactions . our future financial condition and results of operations will differ significantly from , and will not be comparable with , the historical financial position and results of operations of our predecessor . formation transactions each of the properties in our portfolio was owned prior to the completion of our initial public offering by either the easterly funds or by western devcon . each of the easterly funds entered into a contribution agreement with us and our operating partnership pursuant to which they contributed their interests in their property-owning subsidiaries to our operating partnership . western devcon entered into a contribution agreement with us and our operating partnership pursuant to which it contributed its fee interest in 14 properties to our operating partnership . in addition , the owner of the management entities , which is in turn owned by darrell w. crate , our chairman , entered into a contribution agreement with us and our operating partnership pursuant to which it contributed all of the interests in the management entities to our operating partnership . the easterly funds , western devcon and the owner of the management entities received a combination of shares of common stock and common units in exchange for these contributions to our operating partnership . 42 results of operationsour predecessor comparison of results of operations for the years ended december 31 , 2014 and december 31 , 2013 the following table summarizes the consolidated historical results of operations of our predecessor for the years ended december 31 , 2014 and 2013. replace_table_token_6_th income from real estate investments income from real estate investments is attributable to distributions from real estate entities that are recorded as dividend income to the extent distributed from the estimated taxable earnings and profits of the underlying investment vehicle and as a return of capital to the extent not in excess of estimated taxable earnings and profits . income from real estate investments increased by $ 2.3 million , or 57.9 % , to $ 6.3 million for the year ended december 31 , 2014 from $ 4.0 million for the year ended december 31 , 2013. of the $ 2.3 million increase , $ 1.5 million was attributable to distributions from four properties that made their first distribution after december 31 , 2013 : dotlakewood , fbiomaha , fbilittle rock and ptoarlington . fund general and administrative fund general and administrative includes professional , organizational , insurance and other administration expenses incurred in connection with the formation and operations of the easterly funds and any related entities . fund general and administrative decreased by $ 0.5 million , or 37.0 % , to $ 0.8 million for the years ended december 31 , 2014 from $ 1.3 million for the year ended december 31 , 2013. this decrease was primarily attributable to a $ 0.5 million decrease in organizational expenses due to the organization of easterly fund ii in february 2013. no new funds or entities were organized subsequent to the formation of easterly fund ii . corporate general and administrative corporate general and administrative consists of employee compensation , professional fees and other administrative costs . corporate general and administrative increased by $ 4.8 million , or 113.0 % , to $ 9.1 million for the year ended december 31 , 2014 from $ 4.3 million for the year ended december 31 , 2013. this increase was primarily attributable to a $ 4.0 million increase in expenses related to this offering , a $ 1.5 million increase in compensation expense , which was primarily attributable to a $ 1.0 million increase in non-cash compensation expense as well as an increase in the number of employees an overall increase in compensation , as well as a $ 0.5 million increase in acquisition expenses associated with the acquisition of the 14 western devcon properties . this increase was partially offset by a $ 1.2 million decrease in marketing expense due to the renegotiation of a contract resulting in a credit received in 2014 from a marketing vendor . 43 net unrealized gain on investments net unrealized gain on investments consists of the net unrealized appreciation in the fair value of the easterly funds ' real estate investments . story_separator_special_tag for certain of our properties , expenses may vary with occupancy , while costs arising from our property investments , interest expense and general maintenance will not be materially reduced even if a property is not fully occupied . as a result , our future cash flow and results of operations may be adversely affected and losses could be incurred if revenues decrease in the future . cost of funds and interest rates we expect future changes in interest rates will impact our overall performance . in order to limit interest rate risk , we may enter into interest rate swap agreements or similar instruments , subject to maintaining our qualification as a reit for u.s. federal income tax purposes . although we may seek to cost-effectively manage our exposure to future rate increases through such means , a portion of our overall debt may at various times float at then current rates . development activities we intend to engage in development and redevelopment activities with respect to our properties , including build-to-suit new developments and redevelopments for existing u.s. government tenant agencies . these development activities may include some risks such as : the availability and timely receipt of zoning and other regulatory approvals ; development costs exceeding expectations ; cost overruns and untimely completion of construction ( including risks beyond our control , such as weather or labor conditions , or material shortages ) ; the inability to complete construction and leasing of a property on schedule , resulting in increased debt service expense and development and redevelopment costs ; and the availability and pricing of financing on favorable terms or at all . off-balance sheet arrangements we had no material off-balance sheet arrangements as of december 31 , 2014. inflation substantially all of our leases provide for operating expense escalations . we believe inflationary increases in expenses may be at least partially offset by the contractual expense escalations described above . we do not believe inflation has had a material impact on our historical financial position or results of operations . 51 critical accounting policies and significant estimates of our predecessor basis of accounting each of the easterly funds reflected in the consolidated financial statements of easterly partners , llc qualifies as an investment company pursuant to asc 946 and reflects its underlying investments at fair value . our predecessor 's historical consolidated financial statements reflect such specialized accounting for the easterly funds . thus , the easterly funds ' real estate fund investments are reflected at fair value on the consolidated statement of assets , liabilities and capital , with unrealized gains and losses resulting from changes in fair value reflected as a component of change in fair value of real estate fund investments in the consolidated statements of operations . upon the consummation of the initial public offering on february 11 , 2015 , the basis of presentation for the assets that will be contributed to us by the easterly funds will convert to historical cost accounting . our accounting basis for purposes of historical cost accounting will be equal to the fair value of the investments at the completion of the formation transactions . realized and unrealized gains , net our predecessor accounts for its private real estate fund investments at fair value ( which is predominantly based on the fair value of the underlying real estate ) . realized and net changes in unrealized gains and losses resulting from changes in fair value are reflected in the accompanying consolidated statements of operations as realized and unrealized gains , net. the fair value of the investments in real estate held by easterly funds is the amount that would be received to sell an asset , or paid to transfer a liability , in an orderly transaction between market participants at the measurement date . real estate fund investments for which observable market prices in active markets do not exist are reported at fair value , using a discounted cash flow analysis . the amounts determined to be fair value , predominantly based on the fair value of the underlying real estate , incorporate our predecessor 's own assumptions including appropriate risk adjustments , which involves a significant degree of judgment . the assumptions used in determining fair value of the underlying real estate include capitalization rates , discount rates , rental rates and interest and inflation rates , which are subject to change based on changes in economic and market conditions and or changes in use or timing of exit . further , the valuation models encompass a number of uncertainties . for example , a change in the fair value of the investments resulting from a change in the residual capitalization rate may be partially offset by a change in the discount rate . due to the absence of readily determinable fair values and the inherent uncertainty of valuations , the estimated fair values may differ significantly from values that would have been used had a ready market for the property existed , and the differences could be material . prospective critical accounting policies in light of the significant differences that will exist between our future basis of accounting ( historical cost accounting ) and our predecessor 's historical basis of accounting ( investment company accounting ) we believe that presenting the prospective accounting policies will be useful to investors in understanding our future accounting policies . the following policies are our critical accounting policies that will be applicable upon the formation transactions and application of historical cost accounting . real estate properties real estate properties comprise all tangible assets we hold for rent or the supply of services to tenants as a building owner and operator or for administrative purposes . real property is recognized at cost less accumulated depreciation . betterments , major renovations and certain costs directly related to the improvement of real properties are capitalized . maintenance and repair expenses are charged to expense as incurred . 52 depreciation

liquidity and capital resources we anticipate that our cash flows from the sources listed below will provide adequate capital for the next 12 months for all anticipated uses , including all scheduled principal and interest payments on our outstanding indebtedness , current and anticipated tenant improvements , stockholder distributions to maintain our qualification as a reit and other capital obligations associated with conducting our business . our primary expected sources and uses and capital are as follows : sources cash and cash equivalents ; operating cash flow ; available borrowings under our existing revolving credit facility ; secured loans collateralized by individual properties ; issuance of long-term debt ; issuance of equity ; and asset sales . uses short term : redevelopments ; tenant improvements allowances and leasing costs ; recurring maintenance capital expenditures ; debt repayment requirements ; corporate and administrative costs ; and distribution payments . long term : major redevelopment , renovation or expansion programs at individual properties ; development ; acquisitions ; and debt maturities . although we may be able to anticipate and plan for certain of our liquidity needs , unexpected increases in uses of cash that are beyond our control and which affect our financial condition and results of operations may arise , or our sources of liquidity may be fewer than , and the funds available from such sources may be less than , anticipated or required . initial public offering we completed our initial public offering on february 11 , 2015 , pursuant to which we registered and sold 13,800,000 shares of our common stock for an aggregate offering amount of $ 207,000,000. the net proceeds of our initial public offering were approximately $ 191.7 million after deducting underwriting discounts and 46 commissions of approximately $ 13.5 million and estimated offering expenses of approximately $ 1.8 million . citigroup global markets inc. , raymond james & associates , inc. and rbc capital markets , llc acted as joint book-running managers for our initial public offering and as representatives of the underwriters .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources we anticipate that our cash flows from the sources listed below will provide adequate capital for the next 12 months for all anticipated uses , including all scheduled principal and interest payments on our outstanding indebtedness , current and anticipated tenant improvements , stockholder distributions to maintain our qualification as a reit and other capital obligations associated with conducting our business . our primary expected sources and uses and capital are as follows : sources cash and cash equivalents ; operating cash flow ; available borrowings under our existing revolving credit facility ; secured loans collateralized by individual properties ; issuance of long-term debt ; issuance of equity ; and asset sales . uses short term : redevelopments ; tenant improvements allowances and leasing costs ; recurring maintenance capital expenditures ; debt repayment requirements ; corporate and administrative costs ; and distribution payments . long term : major redevelopment , renovation or expansion programs at individual properties ; development ; acquisitions ; and debt maturities . although we may be able to anticipate and plan for certain of our liquidity needs , unexpected increases in uses of cash that are beyond our control and which affect our financial condition and results of operations may arise , or our sources of liquidity may be fewer than , and the funds available from such sources may be less than , anticipated or required . initial public offering we completed our initial public offering on february 11 , 2015 , pursuant to which we registered and sold 13,800,000 shares of our common stock for an aggregate offering amount of $ 207,000,000. the net proceeds of our initial public offering were approximately $ 191.7 million after deducting underwriting discounts and 46 commissions of approximately $ 13.5 million and estimated offering expenses of approximately $ 1.8 million . citigroup global markets inc. , raymond james & associates , inc. and rbc capital markets , llc acted as joint book-running managers for our initial public offering and as representatives of the underwriters .
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 Suspicious Activity Report : our portfolio consists of 15 properties contributed by the easterly funds and 14 properties contributed by western devcon in the formation transactions which occurred concurrently with the completion of our initial public offering on february 11 , 2015. financial information analyzed below reflects the audited predecessor financial statements as of december 31 , 2014 , included in the f pages of this annual report on form 10-k. we have not included for the 14 properties acquired from western devcon inc. in this discussion and analysis of our financial conditions and results of operations since they were not owned by our predecessor on december 31 , 2014 and are not reflected in the financial statements attached here to . our predecessor the term our predecessor refers to easterly partners , llc and its consolidated subsidiaries , including the easterly funds , which held 100 % of the fee interests in the entities that owned 15 of the properties , or the property-owning subsidiaries , that were contributed to us in the formation transactions , as well as the management entities . prior to our initial public offering the easterly funds used investment company accounting and , accordingly , account for their investments on a fair value basis , as reflected in the consolidated financial statements of our predecessor . going forward we will account for the properties owned by the easterly funds using historical cost accounting instead of investment company accounting . moving from investment company accounting to historical cost accounting will result in a significant change in the presentation of our consolidated financial statements following the formation transactions . our future financial condition and results of operations will differ significantly from , and will not be comparable with , the historical financial position and results of operations of our predecessor . formation transactions each of the properties in our portfolio was owned prior to the completion of our initial public offering by either the easterly funds or by western devcon . each of the easterly funds entered into a contribution agreement with us and our operating partnership pursuant to which they contributed their interests in their property-owning subsidiaries to our operating partnership . western devcon entered into a contribution agreement with us and our operating partnership pursuant to which it contributed its fee interest in 14 properties to our operating partnership . in addition , the owner of the management entities , which is in turn owned by darrell w. crate , our chairman , entered into a contribution agreement with us and our operating partnership pursuant to which it contributed all of the interests in the management entities to our operating partnership . the easterly funds , western devcon and the owner of the management entities received a combination of shares of common stock and common units in exchange for these contributions to our operating partnership . 42 results of operationsour predecessor comparison of results of operations for the years ended december 31 , 2014 and december 31 , 2013 the following table summarizes the consolidated historical results of operations of our predecessor for the years ended december 31 , 2014 and 2013. replace_table_token_6_th income from real estate investments income from real estate investments is attributable to distributions from real estate entities that are recorded as dividend income to the extent distributed from the estimated taxable earnings and profits of the underlying investment vehicle and as a return of capital to the extent not in excess of estimated taxable earnings and profits . income from real estate investments increased by $ 2.3 million , or 57.9 % , to $ 6.3 million for the year ended december 31 , 2014 from $ 4.0 million for the year ended december 31 , 2013. of the $ 2.3 million increase , $ 1.5 million was attributable to distributions from four properties that made their first distribution after december 31 , 2013 : dotlakewood , fbiomaha , fbilittle rock and ptoarlington . fund general and administrative fund general and administrative includes professional , organizational , insurance and other administration expenses incurred in connection with the formation and operations of the easterly funds and any related entities . fund general and administrative decreased by $ 0.5 million , or 37.0 % , to $ 0.8 million for the years ended december 31 , 2014 from $ 1.3 million for the year ended december 31 , 2013. this decrease was primarily attributable to a $ 0.5 million decrease in organizational expenses due to the organization of easterly fund ii in february 2013. no new funds or entities were organized subsequent to the formation of easterly fund ii . corporate general and administrative corporate general and administrative consists of employee compensation , professional fees and other administrative costs . corporate general and administrative increased by $ 4.8 million , or 113.0 % , to $ 9.1 million for the year ended december 31 , 2014 from $ 4.3 million for the year ended december 31 , 2013. this increase was primarily attributable to a $ 4.0 million increase in expenses related to this offering , a $ 1.5 million increase in compensation expense , which was primarily attributable to a $ 1.0 million increase in non-cash compensation expense as well as an increase in the number of employees an overall increase in compensation , as well as a $ 0.5 million increase in acquisition expenses associated with the acquisition of the 14 western devcon properties . this increase was partially offset by a $ 1.2 million decrease in marketing expense due to the renegotiation of a contract resulting in a credit received in 2014 from a marketing vendor . 43 net unrealized gain on investments net unrealized gain on investments consists of the net unrealized appreciation in the fair value of the easterly funds ' real estate investments . story_separator_special_tag for certain of our properties , expenses may vary with occupancy , while costs arising from our property investments , interest expense and general maintenance will not be materially reduced even if a property is not fully occupied . as a result , our future cash flow and results of operations may be adversely affected and losses could be incurred if revenues decrease in the future . cost of funds and interest rates we expect future changes in interest rates will impact our overall performance . in order to limit interest rate risk , we may enter into interest rate swap agreements or similar instruments , subject to maintaining our qualification as a reit for u.s. federal income tax purposes . although we may seek to cost-effectively manage our exposure to future rate increases through such means , a portion of our overall debt may at various times float at then current rates . development activities we intend to engage in development and redevelopment activities with respect to our properties , including build-to-suit new developments and redevelopments for existing u.s. government tenant agencies . these development activities may include some risks such as : the availability and timely receipt of zoning and other regulatory approvals ; development costs exceeding expectations ; cost overruns and untimely completion of construction ( including risks beyond our control , such as weather or labor conditions , or material shortages ) ; the inability to complete construction and leasing of a property on schedule , resulting in increased debt service expense and development and redevelopment costs ; and the availability and pricing of financing on favorable terms or at all . off-balance sheet arrangements we had no material off-balance sheet arrangements as of december 31 , 2014. inflation substantially all of our leases provide for operating expense escalations . we believe inflationary increases in expenses may be at least partially offset by the contractual expense escalations described above . we do not believe inflation has had a material impact on our historical financial position or results of operations . 51 critical accounting policies and significant estimates of our predecessor basis of accounting each of the easterly funds reflected in the consolidated financial statements of easterly partners , llc qualifies as an investment company pursuant to asc 946 and reflects its underlying investments at fair value . our predecessor 's historical consolidated financial statements reflect such specialized accounting for the easterly funds . thus , the easterly funds ' real estate fund investments are reflected at fair value on the consolidated statement of assets , liabilities and capital , with unrealized gains and losses resulting from changes in fair value reflected as a component of change in fair value of real estate fund investments in the consolidated statements of operations . upon the consummation of the initial public offering on february 11 , 2015 , the basis of presentation for the assets that will be contributed to us by the easterly funds will convert to historical cost accounting . our accounting basis for purposes of historical cost accounting will be equal to the fair value of the investments at the completion of the formation transactions . realized and unrealized gains , net our predecessor accounts for its private real estate fund investments at fair value ( which is predominantly based on the fair value of the underlying real estate ) . realized and net changes in unrealized gains and losses resulting from changes in fair value are reflected in the accompanying consolidated statements of operations as realized and unrealized gains , net. the fair value of the investments in real estate held by easterly funds is the amount that would be received to sell an asset , or paid to transfer a liability , in an orderly transaction between market participants at the measurement date . real estate fund investments for which observable market prices in active markets do not exist are reported at fair value , using a discounted cash flow analysis . the amounts determined to be fair value , predominantly based on the fair value of the underlying real estate , incorporate our predecessor 's own assumptions including appropriate risk adjustments , which involves a significant degree of judgment . the assumptions used in determining fair value of the underlying real estate include capitalization rates , discount rates , rental rates and interest and inflation rates , which are subject to change based on changes in economic and market conditions and or changes in use or timing of exit . further , the valuation models encompass a number of uncertainties . for example , a change in the fair value of the investments resulting from a change in the residual capitalization rate may be partially offset by a change in the discount rate . due to the absence of readily determinable fair values and the inherent uncertainty of valuations , the estimated fair values may differ significantly from values that would have been used had a ready market for the property existed , and the differences could be material . prospective critical accounting policies in light of the significant differences that will exist between our future basis of accounting ( historical cost accounting ) and our predecessor 's historical basis of accounting ( investment company accounting ) we believe that presenting the prospective accounting policies will be useful to investors in understanding our future accounting policies . the following policies are our critical accounting policies that will be applicable upon the formation transactions and application of historical cost accounting . real estate properties real estate properties comprise all tangible assets we hold for rent or the supply of services to tenants as a building owner and operator or for administrative purposes . real property is recognized at cost less accumulated depreciation . betterments , major renovations and certain costs directly related to the improvement of real properties are capitalized . maintenance and repair expenses are charged to expense as incurred . 52 depreciation

