highlights include : average daily occupancy of 96.5 % , 50 basis points higher than the year ended 2017 ; same store net operating income increased 3.1 % with 74.2 % net operating income margin ; and same store rent increases on renewals and new leases averaged 4.5 % and 1.5 % , respectively , for a weighted average increase of 3.0 % . our focus on efficient operations through productivity initiatives such as centralization of administrative tasks , optimization of economies of scale at the corporate level , and investment in more durable , longer-lived materials has helped us control operating expenses . these and other innovations contributed to limiting growth in controllable operating expense ( defined as property expenses less taxes , insurance and utility expenses ) compounding for the past decade at an annual rate of 0.1 % . for the year ended december 31 , 2018 , our real estate portfolio provided 72 % net operating income margins and 67 % free cash flow margins . redevelopment our second line of business is the redevelopment and limited development of apartment communities . through these activities , we expect to create value by repositioning communities within our portfolio . we measure the rate and quality of financial returns by nav creation , an important component of economic income , our primary measure of long-term financial performance . over the past five years , we have spent approximately $ 1.0 billion on redevelopment and development , resulting in estimated value creation of approximately $ 400.0 million . we also undertake limited ground-up development when warranted by risk-adjusted 19 investment returns , either directly or in connection with the redevelopment of an existing apartment community . when warranted , we rely on the expertise and credit of a third-party developer familiar with the local market to limit our exposure to construction risk . we invest to earn risk-adjusted returns in excess of those expected from the apartment communities sold in paired trades to fund the redevelopment or development . of these two activities , we favor redevelopment because it permits adjustment to the scope and timing of spending to align with changing market conditions and customer preferences . during the year ended december 31 , 2018 , we invested $ 175.9 million in redevelopment and development . in boulder , colorado , we have invested $ 68.9 million in the development of parc mosaic , a 226 -unit apartment home community . the site is two miles from the new google campus and is across the street from ball aerospace 's technology campus and foothills hospital . building in boulder is highly regulated and new supply is limited , notwithstanding higher enrollment at the university of colorado and increased employment generally . at the university of colorado anschutz medical campus , we exercised our option to acquire approximately two acres of land adjacent to our 21 fitzsimons apartment community , and broke ground on the development of the fremont , a 253 -apartment home community . we expect to invest approximately $ 87.0 million to construct the community , which is expected to be ready for occupancy in late 2020. we also commenced the next phase of redevelopment at our flamingo community , located in miami beach , bringing our potential net investment to $ 39.7 million . this phase includes extensive redevelopment of retail , leasing , and common areas , including major enhancements to the entryway . in center city , philadelphia , we completed the redevelopment of park towne place , and as of december 31 , 2018 , we had leased 95.6 % of the apartment homes at the community . this multi-year redevelopment of 940 apartment homes , amenities , and common area spaces , was executed on plan and leased-up in-line with expectations with expected free cash flow returns of greater than 9 % . in san jose , california we completed the redevelopment of saybrook pointe , a 324-apartment home , garden-style community . construction was completed on time and in-line with underwritten costs , and lease-up of the community finished ahead of schedule and at rates above underwriting , increasing the expected free cash flow return to greater than 14 % , a 100 basis point outperformance to underwriting . as of december 31 , 2018 , our total estimated net investment in redevelopment and development activities is $ 571.2 million , with a projected weighted average net operating income yield on these investments of 6.1 % , assuming untrended rents . as of december 31 , 2018 , $ 361.0 million of this total has been funded . during the year ended december 31 , 2018 , we leased 457 apartment homes at our redevelopment and development communities . at december 31 , 2018 , our exposure to lease-up at active redevelopment and development communities was approximately 366 apartment homes , of which 208 were being constructed at parc mosaic , and 158 were located in four other communities . additionally , we expect to acquire one ardmore in 2019 upon its completion as part of the philadelphia portfolio acquisition announced in april 2018. this acquisition will increase our exposure to lease-up risk by approximately 100 apartment homes . see below under the liquidity and capital resources – redevelopment/development heading for additional information regarding our redevelopment and development investment during the year ended december 31 , 2018 . portfolio management our portfolio of apartment communities is diversified across “ a , ” “ b , ” and “ c+ ” price points , averaging “ b/b+ ” in quality and is diversified across several of the largest markets in the u.s. we measure the quality of apartment communities in our real estate portfolio based on average rents of our apartment homes compared to local market average rents as reported by a third-party provider of commercial real estate performance and analysis . story_separator_special_tag renewal rents , which is the rent paid by an existing resident who renewed a lease compared to the rent paid prior to renewal , were up 4.5 % for the year ended december 31 , 2018 , and new lease rents , which is the rent paid by a new resident compared to the rent paid by the previous resident of the same apartment home , were up 1.5 % , resulting in a weighted average increase of 3.0 % . the increase in same store rental and other property revenues was partially offset by a $ 4.7 million , or 3.3 % , increase in property operating expenses , primarily due to increases in real estate taxes and repairs and maintenance costs . during the year ended 25 december 31 , 2018 compared to 2017 , controllable operating expenses , which exclude utility costs , real estate taxes and insurance , increased by $ 1.5 million , or 2.0 % . the proportionate property net operating income of other real estate communities increased by $ 44.2 million , or 31.4 % , for the year ended december 31 , 2018 compared to 2017 primarily due to : a $ 24.1 million increase in property net operating income due to the 2018 acquisition of the four philadelphia communities , bent tree apartments and avery row , as well as the stabilization of indigo ; an $ 11.0 million increase in property net operating income due to leasing activities at redevelopment and development communities , partially offset by decreases due to apartment homes taken out of service for redevelopment ; and higher property net operating income of $ 9.1 million from other communities , primarily the effect of our increased ownership interest in the palazzo communities from our june 2017 reacquisition of a 47 % limited partner interest in the related joint venture . as of december 31 , 2017 , as defined by our segment performance metrics , our real estate portfolio consisted of 90 same store apartment communities with 25,197 apartment homes and 32 other real estate communities with 8,845 apartment homes . as of december 31 , 2017 , our other real estate communities included : 15 apartment communities with 6,386 apartment homes in redevelopment or development ; 2 apartment communities with 578 apartment homes recently acquired ; and 15 apartment communities with 1,881 apartment homes that do not meet the definition of same store because they are either subject to agreements that limit the amount by which we may increase rents or have not reached or maintained a stabilized level of occupancy as of the beginning of a two-year comparable period , often due to a casualty event . our real estate segment results for the years ended december 31 , 2017 and 2016 , as presented below , are based on the apartment community classifications as of december 31 , 2017 , and exclude amounts related to apartment communities sold or classified as held for sale during 2018 . the results of operations for these communities are reflected in the comparable periods in the tables below . replace_table_token_6_th for the year ended december 31 , 2017 compared to 2016 , our real estate segment 's proportionate property net operating income increased $ 48.6 million , or 9.5 % . same store proportionate property net operating income increased by $ 15.5 million , or 4.0 % . this increase was primarily attributable to a $ 17.3 million , or 3.3 % , increase in rental and other property revenues due to higher average revenues of approximately $ 59 per effective home , comprised primarily of increases in rental rates . renewal rents , which is the rent paid by an existing resident who renewed a lease compared to the rent paid prior to renewal , were up 4.6 % for the year ended december 31 , 2017 , and new lease rents , which is the rent paid by a new resident compared to the rent paid by the previous resident of the same apartment home , were up 0.6 % , resulting in a weighted average increase of 2.5 % . the increase in same store rental and other property revenues was partially offset by a $ 1.8 million , or 1.3 % , increase in property operating expenses , primarily due to 26 increases in real estate taxes . during the year ended december 31 , 2017 compared to 2016 , controllable operating expenses , which exclude utility costs , real estate taxes and insurance , decreased by $ 1.6 million , or 2.1 % . the proportionate property net operating income of other real estate comm unities increased by $ 33.1 million , or 27.7 % , for the year ended december 31 , 2017 compared to 2016 primarily due to : redevelopment and lease-up activities during the year ended december 31 , 2017 , which helped contribute to incremental property net operating income of $ 20.9 million compared to 2016 ; and higher property net operating income of $ 12.0 million from other communities , including the effect of our increased ownership interest in the palazzo communities from our june 2017 reacquisition of the 47 % limited partner interest in the related joint venture . non-segment real estate operations operating income amounts not attributed to our real estate segment include offsite costs associated with property management , casualty losses , and the results of apartment communities sold or held for sale , reported in consolidated amounts , which we do not allocate to our real estate segment for purposes of evaluating segment performance , as described in note 12 to the consolidated financial statements in item 8. for the years ended december 31 , 2018 , 2017 and 2016 , casualty losses totaled $ 4.0 million , $ 8.2 million and $ 5.6 million , respectively . casualty losses during the year ended december 31 , 2018 included several claims , primarily

liquidity our liquidity consists of cash balances and available capacity on our revolving line of credit . during the year ended december 31 , 2018 , we exercised our option to expand our revolving credit facility by $ 200.0 million , bringing the total borrowing capacity to $ 800.0 million . as of december 31 , 2018 , we had cash and restricted cash of $ 72.6 million and had the capacity to borrow up to $ 632.5 million on our revolving credit facility , after consideration of $ 7.1 million letters of credit backed by the facility . we use our credit facility primarily for working capital and other short-term purposes and to secure letters of credit . we manage our financial flexibility by maintaining an investment grade rating and holding apartment communities that are unencumbered by property debt . at december 31 , 2018 , we held unencumbered apartment communities with an estimated fair market value of approximately $ 2.7 billion , up 50 % from december 31 , 2017 . two credit rating agencies rate our creditworthiness , using different methodologies and ratios for assessing our credit , and both have rated our credit and outlook as bbb- ( stable ) , an investment grade rating . although some of the ratios they use are similar to those we use to measure our leverage , there are differences in our methods of calculation and therefore our leverage ratios disclosed above are not indicative of the ratios that may be calculated by these agencies .


 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 our liquidity consists of cash balances and available capacity on our revolving line of credit . during the year ended december 31 , 2018 , we exercised our option to expand our revolving credit facility by $ 200.0 million , bringing the total borrowing capacity to $ 800.0 million . as of december 31 , 2018 , we had cash and restricted cash of $ 72.6 million and had the capacity to borrow up to $ 632.5 million on our revolving credit facility , after consideration of $ 7.1 million letters of credit backed by the facility . we use our credit facility primarily for working capital and other short-term purposes and to secure letters of credit . we manage our financial flexibility by maintaining an investment grade rating and holding apartment communities that are unencumbered by property debt . at december 31 , 2018 , we held unencumbered apartment communities with an estimated fair market value of approximately $ 2.7 billion , up 50 % from december 31 , 2017 . two credit rating agencies rate our creditworthiness , using different methodologies and ratios for assessing our credit , and both have rated our credit and outlook as bbb- ( stable ) , an investment grade rating . although some of the ratios they use are similar to those we use to measure our leverage , there are differences in our methods of calculation and therefore our leverage ratios disclosed above are not indicative of the ratios that may be calculated by these agencies .
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 Suspicious Activity Report : highlights include : average daily occupancy of 96.5 % , 50 basis points higher than the year ended 2017 ; same store net operating income increased 3.1 % with 74.2 % net operating income margin ; and same store rent increases on renewals and new leases averaged 4.5 % and 1.5 % , respectively , for a weighted average increase of 3.0 % . our focus on efficient operations through productivity initiatives such as centralization of administrative tasks , optimization of economies of scale at the corporate level , and investment in more durable , longer-lived materials has helped us control operating expenses . these and other innovations contributed to limiting growth in controllable operating expense ( defined as property expenses less taxes , insurance and utility expenses ) compounding for the past decade at an annual rate of 0.1 % . for the year ended december 31 , 2018 , our real estate portfolio provided 72 % net operating income margins and 67 % free cash flow margins . redevelopment our second line of business is the redevelopment and limited development of apartment communities . through these activities , we expect to create value by repositioning communities within our portfolio . we measure the rate and quality of financial returns by nav creation , an important component of economic income , our primary measure of long-term financial performance . over the past five years , we have spent approximately $ 1.0 billion on redevelopment and development , resulting in estimated value creation of approximately $ 400.0 million . we also undertake limited ground-up development when warranted by risk-adjusted 19 investment returns , either directly or in connection with the redevelopment of an existing apartment community . when warranted , we rely on the expertise and credit of a third-party developer familiar with the local market to limit our exposure to construction risk . we invest to earn risk-adjusted returns in excess of those expected from the apartment communities sold in paired trades to fund the redevelopment or development . of these two activities , we favor redevelopment because it permits adjustment to the scope and timing of spending to align with changing market conditions and customer preferences . during the year ended december 31 , 2018 , we invested $ 175.9 million in redevelopment and development . in boulder , colorado , we have invested $ 68.9 million in the development of parc mosaic , a 226 -unit apartment home community . the site is two miles from the new google campus and is across the street from ball aerospace 's technology campus and foothills hospital . building in boulder is highly regulated and new supply is limited , notwithstanding higher enrollment at the university of colorado and increased employment generally . at the university of colorado anschutz medical campus , we exercised our option to acquire approximately two acres of land adjacent to our 21 fitzsimons apartment community , and broke ground on the development of the fremont , a 253 -apartment home community . we expect to invest approximately $ 87.0 million to construct the community , which is expected to be ready for occupancy in late 2020. we also commenced the next phase of redevelopment at our flamingo community , located in miami beach , bringing our potential net investment to $ 39.7 million . this phase includes extensive redevelopment of retail , leasing , and common areas , including major enhancements to the entryway . in center city , philadelphia , we completed the redevelopment of park towne place , and as of december 31 , 2018 , we had leased 95.6 % of the apartment homes at the community . this multi-year redevelopment of 940 apartment homes , amenities , and common area spaces , was executed on plan and leased-up in-line with expectations with expected free cash flow returns of greater than 9 % . in san jose , california we completed the redevelopment of saybrook pointe , a 324-apartment home , garden-style community . construction was completed on time and in-line with underwritten costs , and lease-up of the community finished ahead of schedule and at rates above underwriting , increasing the expected free cash flow return to greater than 14 % , a 100 basis point outperformance to underwriting . as of december 31 , 2018 , our total estimated net investment in redevelopment and development activities is $ 571.2 million , with a projected weighted average net operating income yield on these investments of 6.1 % , assuming untrended rents . as of december 31 , 2018 , $ 361.0 million of this total has been funded . during the year ended december 31 , 2018 , we leased 457 apartment homes at our redevelopment and development communities . at december 31 , 2018 , our exposure to lease-up at active redevelopment and development communities was approximately 366 apartment homes , of which 208 were being constructed at parc mosaic , and 158 were located in four other communities . additionally , we expect to acquire one ardmore in 2019 upon its completion as part of the philadelphia portfolio acquisition announced in april 2018. this acquisition will increase our exposure to lease-up risk by approximately 100 apartment homes . see below under the liquidity and capital resources – redevelopment/development heading for additional information regarding our redevelopment and development investment during the year ended december 31 , 2018 . portfolio management our portfolio of apartment communities is diversified across “ a , ” “ b , ” and “ c+ ” price points , averaging “ b/b+ ” in quality and is diversified across several of the largest markets in the u.s. we measure the quality of apartment communities in our real estate portfolio based on average rents of our apartment homes compared to local market average rents as reported by a third-party provider of commercial real estate performance and analysis . story_separator_special_tag renewal rents , which is the rent paid by an existing resident who renewed a lease compared to the rent paid prior to renewal , were up 4.5 % for the year ended december 31 , 2018 , and new lease rents , which is the rent paid by a new resident compared to the rent paid by the previous resident of the same apartment home , were up 1.5 % , resulting in a weighted average increase of 3.0 % . the increase in same store rental and other property revenues was partially offset by a $ 4.7 million , or 3.3 % , increase in property operating expenses , primarily due to increases in real estate taxes and repairs and maintenance costs . during the year ended 25 december 31 , 2018 compared to 2017 , controllable operating expenses , which exclude utility costs , real estate taxes and insurance , increased by $ 1.5 million , or 2.0 % . the proportionate property net operating income of other real estate communities increased by $ 44.2 million , or 31.4 % , for the year ended december 31 , 2018 compared to 2017 primarily due to : a $ 24.1 million increase in property net operating income due to the 2018 acquisition of the four philadelphia communities , bent tree apartments and avery row , as well as the stabilization of indigo ; an $ 11.0 million increase in property net operating income due to leasing activities at redevelopment and development communities , partially offset by decreases due to apartment homes taken out of service for redevelopment ; and higher property net operating income of $ 9.1 million from other communities , primarily the effect of our increased ownership interest in the palazzo communities from our june 2017 reacquisition of a 47 % limited partner interest in the related joint venture . as of december 31 , 2017 , as defined by our segment performance metrics , our real estate portfolio consisted of 90 same store apartment communities with 25,197 apartment homes and 32 other real estate communities with 8,845 apartment homes . as of december 31 , 2017 , our other real estate communities included : 15 apartment communities with 6,386 apartment homes in redevelopment or development ; 2 apartment communities with 578 apartment homes recently acquired ; and 15 apartment communities with 1,881 apartment homes that do not meet the definition of same store because they are either subject to agreements that limit the amount by which we may increase rents or have not reached or maintained a stabilized level of occupancy as of the beginning of a two-year comparable period , often due to a casualty event . our real estate segment results for the years ended december 31 , 2017 and 2016 , as presented below , are based on the apartment community classifications as of december 31 , 2017 , and exclude amounts related to apartment communities sold or classified as held for sale during 2018 . the results of operations for these communities are reflected in the comparable periods in the tables below . replace_table_token_6_th for the year ended december 31 , 2017 compared to 2016 , our real estate segment 's proportionate property net operating income increased $ 48.6 million , or 9.5 % . same store proportionate property net operating income increased by $ 15.5 million , or 4.0 % . this increase was primarily attributable to a $ 17.3 million , or 3.3 % , increase in rental and other property revenues due to higher average revenues of approximately $ 59 per effective home , comprised primarily of increases in rental rates . renewal rents , which is the rent paid by an existing resident who renewed a lease compared to the rent paid prior to renewal , were up 4.6 % for the year ended december 31 , 2017 , and new lease rents , which is the rent paid by a new resident compared to the rent paid by the previous resident of the same apartment home , were up 0.6 % , resulting in a weighted average increase of 2.5 % . the increase in same store rental and other property revenues was partially offset by a $ 1.8 million , or 1.3 % , increase in property operating expenses , primarily due to 26 increases in real estate taxes . during the year ended december 31 , 2017 compared to 2016 , controllable operating expenses , which exclude utility costs , real estate taxes and insurance , decreased by $ 1.6 million , or 2.1 % . the proportionate property net operating income of other real estate comm unities increased by $ 33.1 million , or 27.7 % , for the year ended december 31 , 2017 compared to 2016 primarily due to : redevelopment and lease-up activities during the year ended december 31 , 2017 , which helped contribute to incremental property net operating income of $ 20.9 million compared to 2016 ; and higher property net operating income of $ 12.0 million from other communities , including the effect of our increased ownership interest in the palazzo communities from our june 2017 reacquisition of the 47 % limited partner interest in the related joint venture . non-segment real estate operations operating income amounts not attributed to our real estate segment include offsite costs associated with property management , casualty losses , and the results of apartment communities sold or held for sale , reported in consolidated amounts , which we do not allocate to our real estate segment for purposes of evaluating segment performance , as described in note 12 to the consolidated financial statements in item 8. for the years ended december 31 , 2018 , 2017 and 2016 , casualty losses totaled $ 4.0 million , $ 8.2 million and $ 5.6 million , respectively . casualty losses during the year ended december 31 , 2018 included several claims , primarily

