we believe the amended ama provides an improved fee structure that provides aamc with the potential to grow management fee revenues while encouraging growth and performance at front yard , subject to certain performance thresholds and an aggregate fee cap aimed to prevent the management fees from increasing front yard 's general and administrative expenses above industry standards , based on the size of front yard 's gross real estate asset base . importantly , the amended ama also provides for a termination option that would , if exercised , provide an industry-standard termination fee to aamc that did not exist prior to the amendment , while providing front yard with the flexibility to further internalize if the front yard board of directors determines it is in its stockholders ' best interest to do so . for further details of the amended ama , refer to refer to note 6 , “ related-party transactions ” of the consolidated financial statements . full internalization of front yard 's property management during the first quarter of 2019 , the internalization of front yard 's property management function was completed with more than 14,000 of its rental properties managed on its internal platform . front yard now has direct control of leasing , renovation and turn management , vendor management , market analysis and other property management support functions , which has enhanced front yard 's ability to control costs and generate long-term returns to its stockholders . the transition to internal property management has also provided front yard with the opportunity to continue developing its brand and enhancing its residents ' experience . over time , we expect front yard to develop a nationally recognized brand that is known for consistent quality at affordable prices . we believe that with the completion of the internalization , front yard is well positioned to continue improving upon its operating efficiencies as it refines its internal property management platform and grows its rental portfolio , which , in turn , could benefit aamc with growing management fee revenues over time . continued liquidation of non-core assets we continued to manage front yard 's liquidation of its remaining non-core assets , including the full divestiture of its remaining mortgage loans in the fourth quarter of 2019. in addition , as of december 31 , 2019 , front yard 's real estate portfolio included 35 ( ) only 22 non-rental reo properties . we continually evaluate the performance of front yard 's sfr portfolio and market certain rental properties for sale that do not meet front yard 's strategic objectives , and we have identified 181 former rental properties for sale as of december 31 , 2019. these property sales allow front yard to improve its operating efficiency and recycle capital that may be used to purchase pools of stabilized rental homes at attractive yields , to repurchase common stock , to pay down debt or to utilize the proceeds for such other purposes as it determines will best serve its stockholders . optimization of financing in 2019 we have continued our efforts to optimize front yard 's financing structure during 2019. on april 5 , 2019 we assisted front yard in amending its loan agreement with nomura corporate funding americas , llc to , among other things , reduce the interest rate spread over one-month libor from 3.00 % to 2.30 % , improve certain advance rates and modify the facility 's fee structure , resulting in a net reduction of fees to front yard . in addition , on april 26 , 2019 , we assisted front yard in amending its repurchase agreement with credit suisse ag to reduce the interest rate spread over one-month libor from 3.00 % to 2.30 % for funding under the facility secured by rental properties and reduce the fee structure of the facility . these enhancements to front yard 's short-term facilities will result in interest savings while also providing front yard with additional flexibility in deploying its capital . development of new business for aamc during the second quarter of 2019 , front yard commenced a strategic alternatives review process designed to maximize its stockholder value . in light of this process , we appointed a new co-chief executive officer on january 13 , 2020 to serve as an additional resource for us and to be responsible for implementing new business . our potential new businesses are in the development stage under the leadership and direction of our new co-chief executive officer and may include asset management services , investments in real estate related assets or other businesses that leverage the experience of our new co-chief executive officer and our real estate asset acquisition and portfolio management teams . our incumbent co-chief executive officer has continued to focus on the business of front yard and the completion of its strategic alternatives review . on february 17 , 2020 , front yard 's strategic alternatives review was completed , culminating in front yard 's entry into an agreement and plan of merger with affiliates of amherst , providing for the acquisition of front yard by amherst . the merger is expected to close in the second quarter of 2020 , subject to the approval of the holders of a majority of front yard 's outstanding shares and the satisfaction of customary closing conditions . if notice of termination of the amended ama is given upon the consummation of the merger , a termination fee of approximately $ 46.3 million would become payable to us upon the effective date of such termination . story_separator_special_tag front yard 's operating results may be affected by various factors , including , but not limited to , the number and performance of front yard 's sfr properties , its ability to use financing to grow its sfr portfolio and its ability to control operating expenses . the extent to which we are successful in managing these factors for front yard affects our ability to generate management fees , which are our primary source of income . results of operations the following discussion compares our results of operations for the years ended december 31 , 2019 and 2018 . our results of operations for the periods presented are not indicative of our expected results in future periods . for discussion that compares our results of operations for the years ended december 31 , 2018 and 2017 , see “ item 7. management 's discussion and analysis of financial condition and results of operations - results of operations ” included within our annual report on form 10-k for the year ended december 31 , 2018 filed with the sec on february 27 , 2019 . 37 ( ) fiscal year ended december 31 , 2019 compared to fiscal year ended december 31 , 2018 management fees and expense reimbursements we recognized base management fees from front yard of $ 14.3 million for the year ended december 31 , 2019 compared to $ 14.6 million for the year ended december 31 , 2018 . the decrease in base management fees is primarily driven by ( i ) reductions in front yard 's average invested capital ( as defined in the former ama ) during the first four months of 2019 and ( ii ) the minimum base fee of $ 3.6 million per quarter becoming applicable beginning in may 2019. we earned conversion fees of $ 29,000 and $ 0.2 million for the years ended december 31 , 2019 and 2018 , respectively . this decrease is primarily due to fewer loans and reo properties converting to rental properties as we continue to pare the small number of remaining legacy assets of front yard . under the amended ama , we will no longer receive conversion fees from front yard . we recognized expense reimbursements due from front yard of $ 1.5 million for the year ended december 31 , 2019 compared to $ 1.2 million for the year ended december 31 , 2018 . expense reimbursements relate primarily to travel and and certain operating expenses in managing front yard 's business and the employment costs related to the general counsel dedicated to front yard . in addition , during 2019 , we accrued the reimbursement of a one-time bonus payable to an aamc employee on behalf of front yard . salaries and employee benefits salaries and employee benefits decreased to $ 17.0 million from $ 17.3 million for the years ended december 31 , 2019 and 2018 , respectively . this decrease is primarily due to decreased share-based compensation expense for awards granted to our employees , partially offset by increases in our employee headcount . legal and professional fees legal and professional fees increased to $ 3.6 million from $ 1.6 million for the years ended december 31 , 2019 and 2018 , respectively . this increase is primarily due to an increase in legal and consulting fees related to the negotiation and amendment of the asset management agreement . general and administrative expenses general and administrative expenses increased to $ 4.1 million from $ 3.6 million for the years ended december 31 , 2019 and 2018 , respectively . this increase is primarily due to increased occupancy costs related to new , larger office space to accommodate increased headcount and technology costs as we brought certain it functions in-house , partially offset by lower travel costs during 2019. change in fair value of front yard common stock the change in fair value of front yard common stock was $ 5.9 million compared to $ ( 5.1 ) million during the years ended december 31 , 2019 and 2018 , respectively . these changes in fair value were due solely to changes in the market price of front yard 's common stock as reported on the new york stock exchange at each reporting date . dividend income dividend income on shares of front yard common stock was $ 0.7 million and $ 1.0 million for the years ended december 31 , 2019 and 2018 , respectively . the amount of dividend income may vary with front yard 's financial performance , taxable income , liquidity needs and other factors deemed relevant by front yard 's board of directors . 38 ( ) story_separator_special_tag investing activities for the year ended december 31 , 2017 consisted of investments in short-term investments and property and equipment . net cash used in financing activities during the year ended december 31 , 2019 primarily related to shares withheld for taxes upon vesting of restricted stock . net cash used in financing activities for the years ended december 31 , 2018 and 2017 consisted primarily of repurchases of our common stock . off-balance sheet arrangements we had no off-balance sheet arrangements as of december 31 , 2019 or 2018 . recent accounting pronouncements see note 1 , “ organization and basis of presentation - recently issued accounting standards ” to our consolidated financial statements . critical accounting judgments accounting standards require information in financial statements about the risks and uncertainties inherent in significant estimates , and the application of generally accepted accounting principles involves the exercise of varying degrees of judgment . certain amounts included in or affecting our financial statements and related disclosures must be estimated , requiring us to make certain assumptions with respect to values or conditions that can not be known with certainty at the time our consolidated financial statements are prepared . these estimates and assumptions affect the amounts we report for our assets and liabilities and our revenues and

liquidity and capital resources as of december 31 , 2019 , we had cash and cash equivalents of $ 20.0 million compared to $ 27.2 million as of december 31 , 2018 . the reduction in the cash and cash equivalents in 2019 was primarily due to the use of cash in the payment of ongoing employee compensation and benefits , dividends on preferred stock issued under the 2016 employee preferred stock program and general corporate expenses . at december 31 , 2019 , we also held $ 20.0 million in front yard common stock . we also continue to generate asset management fees from front yard under the amended ama . we believe these sources of liquidity are sufficient to enable us to meet anticipated short-term ( one year ) liquidity requirements . our only ongoing cash expenditures are salaries and employee benefits , legal and professional fees , lease obligations and other general and administrative expenses . between january 31 , 2020 and february 3 , 2020 , we received purported notices from holders of our series a shares requesting us to redeem an aggregate of $ 250,000,000 liquidation preference of our series a shares on march 15 , 2020. we do not have legally available funds to redeem all of the series a shares on march 15 , 2020. as a result , we do not believe , under the terms of the certificate , that we are obligated to redeem any of the series a shares under the certificate , and , on january 27 , 2020 , we filed a claim for declaratory relief in the superior court of the virgin islands ,division of st. croix , against luxor to confirm our interpretation of the certificate .


 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 as of december 31 , 2019 , we had cash and cash equivalents of $ 20.0 million compared to $ 27.2 million as of december 31 , 2018 . the reduction in the cash and cash equivalents in 2019 was primarily due to the use of cash in the payment of ongoing employee compensation and benefits , dividends on preferred stock issued under the 2016 employee preferred stock program and general corporate expenses . at december 31 , 2019 , we also held $ 20.0 million in front yard common stock . we also continue to generate asset management fees from front yard under the amended ama . we believe these sources of liquidity are sufficient to enable us to meet anticipated short-term ( one year ) liquidity requirements . our only ongoing cash expenditures are salaries and employee benefits , legal and professional fees , lease obligations and other general and administrative expenses . between january 31 , 2020 and february 3 , 2020 , we received purported notices from holders of our series a shares requesting us to redeem an aggregate of $ 250,000,000 liquidation preference of our series a shares on march 15 , 2020. we do not have legally available funds to redeem all of the series a shares on march 15 , 2020. as a result , we do not believe , under the terms of the certificate , that we are obligated to redeem any of the series a shares under the certificate , and , on january 27 , 2020 , we filed a claim for declaratory relief in the superior court of the virgin islands ,division of st. croix , against luxor to confirm our interpretation of the certificate .
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 Suspicious Activity Report : we believe the amended ama provides an improved fee structure that provides aamc with the potential to grow management fee revenues while encouraging growth and performance at front yard , subject to certain performance thresholds and an aggregate fee cap aimed to prevent the management fees from increasing front yard 's general and administrative expenses above industry standards , based on the size of front yard 's gross real estate asset base . importantly , the amended ama also provides for a termination option that would , if exercised , provide an industry-standard termination fee to aamc that did not exist prior to the amendment , while providing front yard with the flexibility to further internalize if the front yard board of directors determines it is in its stockholders ' best interest to do so . for further details of the amended ama , refer to refer to note 6 , “ related-party transactions ” of the consolidated financial statements . full internalization of front yard 's property management during the first quarter of 2019 , the internalization of front yard 's property management function was completed with more than 14,000 of its rental properties managed on its internal platform . front yard now has direct control of leasing , renovation and turn management , vendor management , market analysis and other property management support functions , which has enhanced front yard 's ability to control costs and generate long-term returns to its stockholders . the transition to internal property management has also provided front yard with the opportunity to continue developing its brand and enhancing its residents ' experience . over time , we expect front yard to develop a nationally recognized brand that is known for consistent quality at affordable prices . we believe that with the completion of the internalization , front yard is well positioned to continue improving upon its operating efficiencies as it refines its internal property management platform and grows its rental portfolio , which , in turn , could benefit aamc with growing management fee revenues over time . continued liquidation of non-core assets we continued to manage front yard 's liquidation of its remaining non-core assets , including the full divestiture of its remaining mortgage loans in the fourth quarter of 2019. in addition , as of december 31 , 2019 , front yard 's real estate portfolio included 35 ( ) only 22 non-rental reo properties . we continually evaluate the performance of front yard 's sfr portfolio and market certain rental properties for sale that do not meet front yard 's strategic objectives , and we have identified 181 former rental properties for sale as of december 31 , 2019. these property sales allow front yard to improve its operating efficiency and recycle capital that may be used to purchase pools of stabilized rental homes at attractive yields , to repurchase common stock , to pay down debt or to utilize the proceeds for such other purposes as it determines will best serve its stockholders . optimization of financing in 2019 we have continued our efforts to optimize front yard 's financing structure during 2019. on april 5 , 2019 we assisted front yard in amending its loan agreement with nomura corporate funding americas , llc to , among other things , reduce the interest rate spread over one-month libor from 3.00 % to 2.30 % , improve certain advance rates and modify the facility 's fee structure , resulting in a net reduction of fees to front yard . in addition , on april 26 , 2019 , we assisted front yard in amending its repurchase agreement with credit suisse ag to reduce the interest rate spread over one-month libor from 3.00 % to 2.30 % for funding under the facility secured by rental properties and reduce the fee structure of the facility . these enhancements to front yard 's short-term facilities will result in interest savings while also providing front yard with additional flexibility in deploying its capital . development of new business for aamc during the second quarter of 2019 , front yard commenced a strategic alternatives review process designed to maximize its stockholder value . in light of this process , we appointed a new co-chief executive officer on january 13 , 2020 to serve as an additional resource for us and to be responsible for implementing new business . our potential new businesses are in the development stage under the leadership and direction of our new co-chief executive officer and may include asset management services , investments in real estate related assets or other businesses that leverage the experience of our new co-chief executive officer and our real estate asset acquisition and portfolio management teams . our incumbent co-chief executive officer has continued to focus on the business of front yard and the completion of its strategic alternatives review . on february 17 , 2020 , front yard 's strategic alternatives review was completed , culminating in front yard 's entry into an agreement and plan of merger with affiliates of amherst , providing for the acquisition of front yard by amherst . the merger is expected to close in the second quarter of 2020 , subject to the approval of the holders of a majority of front yard 's outstanding shares and the satisfaction of customary closing conditions . if notice of termination of the amended ama is given upon the consummation of the merger , a termination fee of approximately $ 46.3 million would become payable to us upon the effective date of such termination . story_separator_special_tag front yard 's operating results may be affected by various factors , including , but not limited to , the number and performance of front yard 's sfr properties , its ability to use financing to grow its sfr portfolio and its ability to control operating expenses . the extent to which we are successful in managing these factors for front yard affects our ability to generate management fees , which are our primary source of income . results of operations the following discussion compares our results of operations for the years ended december 31 , 2019 and 2018 . our results of operations for the periods presented are not indicative of our expected results in future periods . for discussion that compares our results of operations for the years ended december 31 , 2018 and 2017 , see “ item 7. management 's discussion and analysis of financial condition and results of operations - results of operations ” included within our annual report on form 10-k for the year ended december 31 , 2018 filed with the sec on february 27 , 2019 . 37 ( ) fiscal year ended december 31 , 2019 compared to fiscal year ended december 31 , 2018 management fees and expense reimbursements we recognized base management fees from front yard of $ 14.3 million for the year ended december 31 , 2019 compared to $ 14.6 million for the year ended december 31 , 2018 . the decrease in base management fees is primarily driven by ( i ) reductions in front yard 's average invested capital ( as defined in the former ama ) during the first four months of 2019 and ( ii ) the minimum base fee of $ 3.6 million per quarter becoming applicable beginning in may 2019. we earned conversion fees of $ 29,000 and $ 0.2 million for the years ended december 31 , 2019 and 2018 , respectively . this decrease is primarily due to fewer loans and reo properties converting to rental properties as we continue to pare the small number of remaining legacy assets of front yard . under the amended ama , we will no longer receive conversion fees from front yard . we recognized expense reimbursements due from front yard of $ 1.5 million for the year ended december 31 , 2019 compared to $ 1.2 million for the year ended december 31 , 2018 . expense reimbursements relate primarily to travel and and certain operating expenses in managing front yard 's business and the employment costs related to the general counsel dedicated to front yard . in addition , during 2019 , we accrued the reimbursement of a one-time bonus payable to an aamc employee on behalf of front yard . salaries and employee benefits salaries and employee benefits decreased to $ 17.0 million from $ 17.3 million for the years ended december 31 , 2019 and 2018 , respectively . this decrease is primarily due to decreased share-based compensation expense for awards granted to our employees , partially offset by increases in our employee headcount . legal and professional fees legal and professional fees increased to $ 3.6 million from $ 1.6 million for the years ended december 31 , 2019 and 2018 , respectively . this increase is primarily due to an increase in legal and consulting fees related to the negotiation and amendment of the asset management agreement . general and administrative expenses general and administrative expenses increased to $ 4.1 million from $ 3.6 million for the years ended december 31 , 2019 and 2018 , respectively . this increase is primarily due to increased occupancy costs related to new , larger office space to accommodate increased headcount and technology costs as we brought certain it functions in-house , partially offset by lower travel costs during 2019. change in fair value of front yard common stock the change in fair value of front yard common stock was $ 5.9 million compared to $ ( 5.1 ) million during the years ended december 31 , 2019 and 2018 , respectively . these changes in fair value were due solely to changes in the market price of front yard 's common stock as reported on the new york stock exchange at each reporting date . dividend income dividend income on shares of front yard common stock was $ 0.7 million and $ 1.0 million for the years ended december 31 , 2019 and 2018 , respectively . the amount of dividend income may vary with front yard 's financial performance , taxable income , liquidity needs and other factors deemed relevant by front yard 's board of directors . 38 ( ) story_separator_special_tag investing activities for the year ended december 31 , 2017 consisted of investments in short-term investments and property and equipment . net cash used in financing activities during the year ended december 31 , 2019 primarily related to shares withheld for taxes upon vesting of restricted stock . net cash used in financing activities for the years ended december 31 , 2018 and 2017 consisted primarily of repurchases of our common stock . off-balance sheet arrangements we had no off-balance sheet arrangements as of december 31 , 2019 or 2018 . recent accounting pronouncements see note 1 , “ organization and basis of presentation - recently issued accounting standards ” to our consolidated financial statements . critical accounting judgments accounting standards require information in financial statements about the risks and uncertainties inherent in significant estimates , and the application of generally accepted accounting principles involves the exercise of varying degrees of judgment . certain amounts included in or affecting our financial statements and related disclosures must be estimated , requiring us to make certain assumptions with respect to values or conditions that can not be known with certainty at the time our consolidated financial statements are prepared . these estimates and assumptions affect the amounts we report for our assets and liabilities and our revenues and

