on august 8 , 2015 , we entered into the service provider agreement with the advisor and the service provider , pursuant to which the service provider agreed to provide , subject to the advisor 's oversight , certain real estate-related services , as well as sourcing and structuring of investment opportunities , performance of due diligence , and arranging debt financing and equity investment syndicates , solely with respect to investments in europe . on january 16 , 2018 , we notified the service provider that it was being terminated effective as of march 17 , 2018. additionally , as a result of our termination of the service provider , the property management and leasing agreement among an affiliate of the advisor and the service provider will terminate by its own terms . as required under the advisory agreement , the advisor and its affiliates will continue to manage our affairs on a day to day basis ( including management and leasing of our properties ) and will remain responsible for managing and providing other services with respect to our european investments . the advisor may engage one or more third parties to assist with these responsibilities , all subject to the terms of the advisory agreement . see item 3 . legal proceedings . during the year ended december 31 , 2017 , we sold 1 property and acquired 12 properties ( see note 4 — real estate investments , net to our audited consolidated financial statements in this annual report on form 10-k for further discussion ) . significant accounting estimates and accounting policies set forth below is a summary of the significant accounting estimates and accounting policies that management believes are important to the preparation of our financial statements . certain of our accounting estimates are particularly important for an understanding of our financial position and results of operations , and require the application of significant judgment by our management . as a result , these estimates are subject to a degree of uncertainty . these significant accounting estimates and accounting policies include : revenue recognition our revenues , which are derived primarily from rental income , include rents that each tenant pays in accordance with the terms of each lease agreement and are reported on a straight-line basis over the initial term of the lease . since many of our leases provide for rental increases at specified intervals , straight-line basis accounting requires us to record a receivable and include in revenues unbilled rent receivables that we will only receive if the tenant makes all rent payments required through the expiration of the initial term of the lease . for each new lease after acquisition , the commencement date is the date the tenant takes possession of the space . for a lease modification , the commencement date is the date the lease modification is executed . we defer the revenue related to lease payments received from tenants in advance of their due dates . when we acquire a property , the acquisition date for purposes of this calculation is the commencement date . 47 as of december 31 , 2017 and 2016 , cumulative straight-line rents receivable in our audited consolidated balance sheets were $ 42.7 million and $ 30.5 million , respectively . for the years ended december 31 , 2017 and 2016 , our rental revenue included impacts of unbilled rental revenue of $ 10.5 million and $ 10.6 million , respectively , to adjust contractual rent to straight-line rent . we regularly review receivables related to rent and unbilled rent receivables and determine collectability by taking into consideration the tenant 's payment history , the financial condition of the tenant , business conditions in the industry in which the tenant operates and economic conditions in the geographic area in which the property is located . in the event that the collectability of a receivable is in doubt , we record an increase in our allowance for uncollectible accounts or record a direct write-off of the receivable in our audited consolidated statements of operations . cost recoveries from tenants are included in operating expense reimbursement in the period that the related costs are incurred , as applicable . investments in real estate investments in real estate are recorded at cost . improvements and replacements are capitalized when they extend the useful life of the asset . costs of repairs and maintenance are expensed as incurred . we evaluate the inputs , processes and outputs of each asset acquired to determine if the transaction is a business combination or asset acquisition . if an acquisition qualifies as a business combination , the related transaction costs are recorded as an expense in the audited consolidated statements of operations . if an acquisition qualifies as an asset acquisition , the related transaction costs are generally capitalized and subsequently amortized over the useful life of the acquired assets . in business combinations , we allocate the purchase price of acquired properties to tangible and identifiable intangible assets or liabilities and non-controlling interests based on their respective fair values . tangible assets may include land , land improvements , buildings , fixtures and tenant improvements . intangible assets or liabilities may include the value of in-place leases , above- and below- market leases and other identifiable assets or liabilities based on lease or property specific characteristics . in addition , any assumed mortgages receivable or payable and any assumed or issued non-controlling interests are recorded at their estimated fair values . in allocating the fair value to assumed mortgages , amounts are recorded to debt premiums or discounts based on the present value of the estimated cash flows , which is calculated to account for either above- or below-market interest rates . story_separator_special_tag operating fees to related parties represent compensation to the advisor for asset management services as well as property management fees paid to the advisor , property manager and service provider for our european investments . our advisory agreement requires us to pay a base management fee of $ 18.0 million per annum ( $ 4.5 million per quarter ) and a variable base management fee , both payable in cash , and incentive compensation , payable in cash and shares , if the applicable hurdles are met ( see note 11 - related party transactions to our audited consolidated financial statements in this annual report on form 10-k for details ) . the increase to operating fees in 2017 is driven in part by the payment of the variable base management fee equal to $ 3.4 million resulting from the issuance of $ 370.4 million of equity in connection with the merger , issuances of shares of common stock pursuant to the atm program and issuances of series a preferred stock . in addition , our operating fees paid to related parties increased due to an increase in the property management fees incurred on the acquisition of 12 properties during 2017 , and was partially offset by our disposition of one property during the first quarter of 2017 , and the disposition of 34 properties during the last two quarters of 2016. no incentive compensation was earned for the two years ended december 31 , 2017 and 2016 , respectively . our service provider and property manager are entitled to fees for the management of our properties . property management fees that we pay our service provider and property manager are calculated as a percentage of our gross revenues . during the years ended december 31 , 2017 and 2016 , property management fees we paid were $ 4.3 million and $ 3.8 million , respectively . the property manager elected to waive $ 1.2 million and $ 2.3 million of the property management fees for the years ended december 31 , 2017 and 2016 , respectively . acquisition and transaction related expenses we recorded $ 2.0 million of acquisition and transaction expenses during the year ended december 31 , 2017 , which consisted of third-party professional fees relating to the merger , fees related to the novation of our derivative contracts in connection with the refinancing in july 2017 of our prior credit facility pursuant to a credit agreement dated as july 25 , 2013 ( as amended from time to time thereafter , the `` prior credit facility `` ) with the credit facility , bridge facility commitment letter fees and legal fees . our 2017 acquisitions and dispositions are considered as asset acquisitions and disposal , therefore any applicable transaction costs were capitalized . acquisition and transaction related expenses during the year ended december 31 , 2016 of $ 9.8 million were primarily related to the merger . 51 general and administrative expense general and administrative expense was $ 8.6 million and $ 7.1 million for the years ended december 31 , 2017 and 2016 , respectively , primarily consisting of professional fees including audit and taxation related services , board member compensation , and directors ' and officers ' liability insurance . the increase for the twelve months ended december 31 , 2017 compared to the twelve months ended december 31 , 2016 is primarily due to the increase in directors and officer 's liability insurance premiums and professional fees . equity based compensation during the years ended december 31 , 2017 and 2016 , we recognized income of $ ( 4.4 ) million and expense of $ 3.4 million , respectively , with respect to equity-based compensation primarily related to changes in the fair value of the opp offset by the amortization of restricted shares and rsus granted to our independent directors . the decrease in equity based compensation in 2017 is primarily due to a decrease in the opp valuation , which resulted from the second year of the performance period under the opp having ended without any ltip units having been earned , due to a decrease in our stock price , and our peer groups having generally outperformed us . see note 13 - share-based compensation to our audited consolidated financial statements in this annual report on form 10-k for details regarding the opp . depreciation and amortization expense depreciation and amortization expense was $ 113.0 million and $ 94.5 million for the years ended december 31 , 2017 and 2016 , respectively . the increase in 2017 is due to a full year of depreciation and amortization expense for the 15 properties acquired through the merger during 2016 , coupled with our short-period depreciation and amortization for the 12 properties acquired in 2017 , and aided by a rise in the value of the gbp and euro throughout 2017 compared to the usd . this expense is offset slightly by the absence of depreciation and amortization for the one property disposition in the first quarter of 2017 and for the 34 properties sold during the last two quarters of 2016. additionally , in connection with the financial difficulties of a tenant , we wrote off the tenant related lease intangibles with a carrying amount of $ 1.8 million , net of accumulated amortization , during the third quarter of 2017. interest expense interest expense was $ 48.5 million and $ 39.1 million for the years ended december 31 , 2017 and 2016 , respectively . the increase was primarily related to $ 386.1 million of debt assumed in the merger and borrowings of $ 720.9 million based on usd equivalent incurred on july 24 , 2017 under the credit facility . these new borrowings were offset by the full repayment of $ 56.5 million outstanding under the mezzanine facility assumed in connection with the merger ( the `` mezzanine facility `` ) on march 30 , 2017 , the full repayment

cash flows from investing activities net cash used in investing activities during the year ended december 31 , 2017 of $ 79.0 million primarily related to cash paid for investments in real estate of $ 98.8 million and capital expenditures of $ 3.1 million , partially offset by net proceeds from the sale of real estate investments of $ 12.3 million from the disposition of kulicke & soffa and net proceeds from settlement of derivatives of $ 10.6 million . 55 net cash provided by investing activities during the year ended december 31 , 2016 of $ 134.1 million primarily related to proceeds from sale of real estate investments of $ 107.8 million on dispositions of 34 properties , cash acquired in merger transaction of $ 19.0 million and restricted cash acquired in merger transaction of $ 7.6 million . net cash used in investing activities during the year ended december 31 , 2015 of $ 222.3 million primarily related to our acquisition of 22 properties with an aggregate base purchase price of $ 255.0 million , which were partially funded with borrowings under our credit facility and by mortgage notes payable . cash flows from financing activities net cash used in financing activities of $ 30.7 million during the year ended december 31 , 2017 related to repayments on the prior credit facility and the credit facility of $ 1.0 billion , dividends to common stockholders of $ 142.7 million , repayment of the mezzanine facility of $ 56.5 million and repayments of mortgage notes payable of $ 21.9 million .


 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.
     ```cash flows from investing activities net cash used in investing activities during the year ended december 31 , 2017 of $ 79.0 million primarily related to cash paid for investments in real estate of $ 98.8 million and capital expenditures of $ 3.1 million , partially offset by net proceeds from the sale of real estate investments of $ 12.3 million from the disposition of kulicke & soffa and net proceeds from settlement of derivatives of $ 10.6 million . 55 net cash provided by investing activities during the year ended december 31 , 2016 of $ 134.1 million primarily related to proceeds from sale of real estate investments of $ 107.8 million on dispositions of 34 properties , cash acquired in merger transaction of $ 19.0 million and restricted cash acquired in merger transaction of $ 7.6 million . net cash used in investing activities during the year ended december 31 , 2015 of $ 222.3 million primarily related to our acquisition of 22 properties with an aggregate base purchase price of $ 255.0 million , which were partially funded with borrowings under our credit facility and by mortgage notes payable . cash flows from financing activities net cash used in financing activities of $ 30.7 million during the year ended december 31 , 2017 related to repayments on the prior credit facility and the credit facility of $ 1.0 billion , dividends to common stockholders of $ 142.7 million , repayment of the mezzanine facility of $ 56.5 million and repayments of mortgage notes payable of $ 21.9 million .
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 Suspicious Activity Report : on august 8 , 2015 , we entered into the service provider agreement with the advisor and the service provider , pursuant to which the service provider agreed to provide , subject to the advisor 's oversight , certain real estate-related services , as well as sourcing and structuring of investment opportunities , performance of due diligence , and arranging debt financing and equity investment syndicates , solely with respect to investments in europe . on january 16 , 2018 , we notified the service provider that it was being terminated effective as of march 17 , 2018. additionally , as a result of our termination of the service provider , the property management and leasing agreement among an affiliate of the advisor and the service provider will terminate by its own terms . as required under the advisory agreement , the advisor and its affiliates will continue to manage our affairs on a day to day basis ( including management and leasing of our properties ) and will remain responsible for managing and providing other services with respect to our european investments . the advisor may engage one or more third parties to assist with these responsibilities , all subject to the terms of the advisory agreement . see item 3 . legal proceedings . during the year ended december 31 , 2017 , we sold 1 property and acquired 12 properties ( see note 4 — real estate investments , net to our audited consolidated financial statements in this annual report on form 10-k for further discussion ) . significant accounting estimates and accounting policies set forth below is a summary of the significant accounting estimates and accounting policies that management believes are important to the preparation of our financial statements . certain of our accounting estimates are particularly important for an understanding of our financial position and results of operations , and require the application of significant judgment by our management . as a result , these estimates are subject to a degree of uncertainty . these significant accounting estimates and accounting policies include : revenue recognition our revenues , which are derived primarily from rental income , include rents that each tenant pays in accordance with the terms of each lease agreement and are reported on a straight-line basis over the initial term of the lease . since many of our leases provide for rental increases at specified intervals , straight-line basis accounting requires us to record a receivable and include in revenues unbilled rent receivables that we will only receive if the tenant makes all rent payments required through the expiration of the initial term of the lease . for each new lease after acquisition , the commencement date is the date the tenant takes possession of the space . for a lease modification , the commencement date is the date the lease modification is executed . we defer the revenue related to lease payments received from tenants in advance of their due dates . when we acquire a property , the acquisition date for purposes of this calculation is the commencement date . 47 as of december 31 , 2017 and 2016 , cumulative straight-line rents receivable in our audited consolidated balance sheets were $ 42.7 million and $ 30.5 million , respectively . for the years ended december 31 , 2017 and 2016 , our rental revenue included impacts of unbilled rental revenue of $ 10.5 million and $ 10.6 million , respectively , to adjust contractual rent to straight-line rent . we regularly review receivables related to rent and unbilled rent receivables and determine collectability by taking into consideration the tenant 's payment history , the financial condition of the tenant , business conditions in the industry in which the tenant operates and economic conditions in the geographic area in which the property is located . in the event that the collectability of a receivable is in doubt , we record an increase in our allowance for uncollectible accounts or record a direct write-off of the receivable in our audited consolidated statements of operations . cost recoveries from tenants are included in operating expense reimbursement in the period that the related costs are incurred , as applicable . investments in real estate investments in real estate are recorded at cost . improvements and replacements are capitalized when they extend the useful life of the asset . costs of repairs and maintenance are expensed as incurred . we evaluate the inputs , processes and outputs of each asset acquired to determine if the transaction is a business combination or asset acquisition . if an acquisition qualifies as a business combination , the related transaction costs are recorded as an expense in the audited consolidated statements of operations . if an acquisition qualifies as an asset acquisition , the related transaction costs are generally capitalized and subsequently amortized over the useful life of the acquired assets . in business combinations , we allocate the purchase price of acquired properties to tangible and identifiable intangible assets or liabilities and non-controlling interests based on their respective fair values . tangible assets may include land , land improvements , buildings , fixtures and tenant improvements . intangible assets or liabilities may include the value of in-place leases , above- and below- market leases and other identifiable assets or liabilities based on lease or property specific characteristics . in addition , any assumed mortgages receivable or payable and any assumed or issued non-controlling interests are recorded at their estimated fair values . in allocating the fair value to assumed mortgages , amounts are recorded to debt premiums or discounts based on the present value of the estimated cash flows , which is calculated to account for either above- or below-market interest rates . story_separator_special_tag operating fees to related parties represent compensation to the advisor for asset management services as well as property management fees paid to the advisor , property manager and service provider for our european investments . our advisory agreement requires us to pay a base management fee of $ 18.0 million per annum ( $ 4.5 million per quarter ) and a variable base management fee , both payable in cash , and incentive compensation , payable in cash and shares , if the applicable hurdles are met ( see note 11 - related party transactions to our audited consolidated financial statements in this annual report on form 10-k for details ) . the increase to operating fees in 2017 is driven in part by the payment of the variable base management fee equal to $ 3.4 million resulting from the issuance of $ 370.4 million of equity in connection with the merger , issuances of shares of common stock pursuant to the atm program and issuances of series a preferred stock . in addition , our operating fees paid to related parties increased due to an increase in the property management fees incurred on the acquisition of 12 properties during 2017 , and was partially offset by our disposition of one property during the first quarter of 2017 , and the disposition of 34 properties during the last two quarters of 2016. no incentive compensation was earned for the two years ended december 31 , 2017 and 2016 , respectively . our service provider and property manager are entitled to fees for the management of our properties . property management fees that we pay our service provider and property manager are calculated as a percentage of our gross revenues . during the years ended december 31 , 2017 and 2016 , property management fees we paid were $ 4.3 million and $ 3.8 million , respectively . the property manager elected to waive $ 1.2 million and $ 2.3 million of the property management fees for the years ended december 31 , 2017 and 2016 , respectively . acquisition and transaction related expenses we recorded $ 2.0 million of acquisition and transaction expenses during the year ended december 31 , 2017 , which consisted of third-party professional fees relating to the merger , fees related to the novation of our derivative contracts in connection with the refinancing in july 2017 of our prior credit facility pursuant to a credit agreement dated as july 25 , 2013 ( as amended from time to time thereafter , the `` prior credit facility `` ) with the credit facility , bridge facility commitment letter fees and legal fees . our 2017 acquisitions and dispositions are considered as asset acquisitions and disposal , therefore any applicable transaction costs were capitalized . acquisition and transaction related expenses during the year ended december 31 , 2016 of $ 9.8 million were primarily related to the merger . 51 general and administrative expense general and administrative expense was $ 8.6 million and $ 7.1 million for the years ended december 31 , 2017 and 2016 , respectively , primarily consisting of professional fees including audit and taxation related services , board member compensation , and directors ' and officers ' liability insurance . the increase for the twelve months ended december 31 , 2017 compared to the twelve months ended december 31 , 2016 is primarily due to the increase in directors and officer 's liability insurance premiums and professional fees . equity based compensation during the years ended december 31 , 2017 and 2016 , we recognized income of $ ( 4.4 ) million and expense of $ 3.4 million , respectively , with respect to equity-based compensation primarily related to changes in the fair value of the opp offset by the amortization of restricted shares and rsus granted to our independent directors . the decrease in equity based compensation in 2017 is primarily due to a decrease in the opp valuation , which resulted from the second year of the performance period under the opp having ended without any ltip units having been earned , due to a decrease in our stock price , and our peer groups having generally outperformed us . see note 13 - share-based compensation to our audited consolidated financial statements in this annual report on form 10-k for details regarding the opp . depreciation and amortization expense depreciation and amortization expense was $ 113.0 million and $ 94.5 million for the years ended december 31 , 2017 and 2016 , respectively . the increase in 2017 is due to a full year of depreciation and amortization expense for the 15 properties acquired through the merger during 2016 , coupled with our short-period depreciation and amortization for the 12 properties acquired in 2017 , and aided by a rise in the value of the gbp and euro throughout 2017 compared to the usd . this expense is offset slightly by the absence of depreciation and amortization for the one property disposition in the first quarter of 2017 and for the 34 properties sold during the last two quarters of 2016. additionally , in connection with the financial difficulties of a tenant , we wrote off the tenant related lease intangibles with a carrying amount of $ 1.8 million , net of accumulated amortization , during the third quarter of 2017. interest expense interest expense was $ 48.5 million and $ 39.1 million for the years ended december 31 , 2017 and 2016 , respectively . the increase was primarily related to $ 386.1 million of debt assumed in the merger and borrowings of $ 720.9 million based on usd equivalent incurred on july 24 , 2017 under the credit facility . these new borrowings were offset by the full repayment of $ 56.5 million outstanding under the mezzanine facility assumed in connection with the merger ( the `` mezzanine facility `` ) on march 30 , 2017 , the full repayment

