for the year ended december 31 , 2018 , we had no material lease renewals . 34 during 2019 , we will continue to invest funds toward the achievement of entitlements , permits , and maps for our land and for master project infrastructure and vertical development within our active commercial and industrial development . securing entitlements for our land is a long , arduous process that can take several years and often involves litigation . during the next few years , our net income will fluctuate from year-to-year based upon , among other factors , commodity prices , production within our farming segment , the timing of land sales and the leasing of land and or industrial space within our industrial developments , and equity in earnings realized from our unconsolidated joint ventures . this management 's discussion and analysis of financial condition and results of operations provides a narrative discussion of our results of operations . it contains the results of operations for each operating segment of the business and is followed by a discussion of our financial position . it is useful to read the business segment information in conjunction with note 16 ( reporting segments and related information ) of the notes to consolidated financial statements . critical accounting policies the preparation of our consolidated financial statements in accordance with generally accepted accounting principles in the united states , or gaap , requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . we consider an accounting estimate to be critical if : ( 1 ) the accounting estimate requires us to make assumptions about matters that were highly uncertain at the time the accounting estimate was made , and ( 2 ) changes in the estimates that are likely to occur from period to period , or use of different estimates that we reasonably could have used in the current period , would have a material impact on our financial condition or results of operations . on an on-going basis , we evaluate our estimates , including those related to revenue recognition , impairment of long-lived assets , capitalization of costs , allocation of costs related to land sales and leases , stock compensation , our future ability to utilize deferred tax assets , and defined benefit retirement plans . we base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . management has discussed the development and selection of these critical accounting estimates with the audit committee of our board of directors and the audit committee has reviewed the foregoing disclosure . in addition , there are other items within our financial statements that require estimation , but are not deemed critical as defined above . changes in estimates used in these and other items could have a material impact on our financial statements . see also note 1 ( summary of significant accounting policies ) of the notes to consolidated financial statements , which discusses accounting policies that we have selected from acceptable alternatives . we believe the following critical accounting policies reflect our more significant judgments and estimates used in the preparation of the consolidated financial statements : revenue recognition – the company 's revenue is primarily derived from lease revenue from our rental portfolio , royalty revenue from mineral leases , sales of farm crops , sales of water , and land sales . revenue from leases with rent concessions or fixed escalations is recognized on a straight-line basis over the initial term of the related lease unless there is a considerable risk as to collectability . the financial terms of leases are contractually defined . lease revenue is not accrued when a tenant vacates the premises and ceases to make rent payments or files for bankruptcy . royalty revenues are contractually defined as to the percentage of royalty and are tied to production and market prices . our royalty arrangements generally require payment on a monthly basis with the payment based on the previous month 's activity . we accrue monthly royalty revenues based upon estimates and adjust to actual as we receive payments . from time to time the company sells easements over its land . the easements are either in the form of rights of access granted for such things as utility corridors or are in the form of conservation easements that generally require the company to divest its rights to commercially develop a portion of its land , but do not result in a change in ownership of the land or restrict the company from continuing other revenue generating activities on the land . sales of conservation easements are accounted for in accordance with the five-step model under accounting standards codification topic 606 , or asc 606. the five-step model requires that we ( i ) identify the contract with the customer , ( ii ) identify the performance obligations in the contract , ( iii ) determine the transaction price , including variable consideration to the extent that it is probable that a significant future reversal will not occur , ( iv ) allocate the transaction price to the respective performance obligations in the contract , and ( v ) recognize revenue when ( or as ) we satisfy the performance obligation . since conservation easements generally do not impose any significant continuing performance obligations on the company , revenue from conservation easement sales are generally recognized in the period the sale has closed and consideration has been received . story_separator_special_tag the company and majestic have successfully leased 67 % of this distribution facility prior to its completion , with the tenant taking occupancy in q4 of 2019. this new construction is building on the success in 2018 of fully leasing a 480,000 square foot building in a partnership with majestic . a potential disadvantage to our development strategy is our distance from the ports of los angeles and long beach in comparison to the warehouse/distribution centers located in the inland empire , a large industrial area located east of los angeles , which continues its expansion eastward beyond riverside and san bernardino , to include perris , moreno valley , and beaumont . as development in the inland empire continues to move east and farther away from the ports , our potential disadvantage of our distance from the ports is being mitigated . strong demand for large distribution facilities is driving development farther east in a search for large entitled parcels . during 2018 , vacancy rates in the inland empire stayed flat at 3.9 % compared to 3.7 % in 2017. this industrial market continues to see available supply remain at historic low levels . construction declined slightly during the fourth quarter with 20.5 million square feet under construction compared to 20.7 million in 2017. this new supply is currently meeting growing industrial demand . the low vacancy rates have led to a year-over-year increase in lease rates of 7.3 % within the inland empire . as lease rates increase in the inland empire , we may begin to have greater pricing advantages due to our lower land basis . during 2018 , vacancy rates in the northern los angeles industrial market , which includes the san fernando valley and santa clarita valley , approximated 1.6 % . rents have been increasing for the past six years and will likely continue to rise in future years as the vacancy rate is at historic lows and quality industrial space remains hard to find . during 2018 , average asking rents increased 8.5 % compared with 2017 , which have surpassed the historical peak which was seen in late 2007. industrial demand remains high and infill industrial demand remains higher still . future quarters will likely see greater construction activity as rents hit new highs and vacancy rates are at historic lows . demand for industrial space in this market will also continue to be driven by domestic and global consumption levels . as industrial vacancy rates are at historic lows , industrial users seeking larger spaces are having to go further north into neighboring kern county and particularly , the trcc which has attracted increased attention as market conditions continue to tighten . in 2018 , the los angeles and long beach port container traffic recorded its highest container total ever with 17.54 million twenty-foot equivalent units , or teu 's , up 3.8 % from 2017. teu is a measure of a ship 's cargo carrying capacity . the dimensions of one teu are equal to that of a standard shipping container measuring 20 feet long by 8 feet tall . we expect the commercial/industrial segment to continue to experience costs , net of amounts capitalized , primarily related to professional service fees , marketing costs , commissions , planning costs , and staffing costs as we continue to pursue development opportunities . these costs are expected to remain consistent with current levels of expense with any variability in the future tied to specific absorption transactions in any given year . the actual timing and completion of development is difficult to predict due to the uncertainties of the market . infrastructure development and marketing activities and costs could continue over several years as we develop our land holdings . we will also continue to evaluate land resources to determine the highest and best uses for our land holdings . future sales of land are dependent on market circumstances and specific opportunities . our goal in the future is to increase land value and create future revenue growth through planning and development of commercial and industrial properties . 40 real estate – resort/residential we are in the preliminary stages of development ; hence , no revenues are attributed to this segment for these reporting periods . in 2018 , resort/residential segment expenses decreased $ 425,000 to $ 1,530,000 , or 22 % , when compared to $ 1,955,000 in 2017 . the reassignment of resources within the company translated to increases in qualifying costs , including payroll and overhead costs within resort/residential which in turn translated to an increase in costs being capitalized into our real estate development projects by $ 250,000 when compared to 2017. in addition , we experienced savings in professional services of $ 163,000 in 2018. in 2017 , resort/residential segment expenses increased $ 325,000 primarily due to reduced capitalization of payroll and overhead costs that in the prior years were identified to be incremental to our mixed use master plan development projects . our resort/residential segment activities in include land entitlement , land planning and pre-construction engineering and conservation activities . we have three major resort/residential communities within this segment : centennial , grapevine , and mv . for centennial , the board of supervisors in december 2018 , by a vote of 4-1 , affirmed the recommendation of the los angeles county regional planning commission and department of regional planning that centennial be approved . for grapevine , we are currently working with kern county to defend litigation related to the approved eir . for a more complete discussion of the litigation and approval process , please see note 14 ( commitments and contingencies ) to the notes to consolidated financial statements . for mv , we have a fully entitled project and received approval of tentative tract map 1 for our first four phases of development . the timing of mv development in the coming years will be dependent on the strength of

liquidity and capital resources cash flow and liquidity our financial position allows us to pursue our strategies of land entitlement , development , and conservation . accordingly , we have established well-defined priorities for our available cash , including investing in core operating segments to achieve profitable future growth . we have historically funded our operations with cash flows from operating activities , investment proceeds , and short-term borrowings from our bank credit facilities . in the past , we have also issued common stock and used the proceeds for capital investment activities . to enhance shareholder value , we will continue to make investments in our real estate segments to secure land entitlement approvals , build infrastructure for our developments , ensure adequate future water supplies , and provide funds for general land development activities . within our farming segment , we will make investments as needed to improve efficiency and add capacity to its operations when it is profitable to do so . on october 4 , 2017 , the company commenced a rights offering to common shareholders for additional working capital for general corporate purposes , including to fund general infrastructure costs and the development of buildings at trcc , to continue forward with entitlement and permitting programs for the centennial and grapevine communities and costs related to the preparation of the development of mv . the rights offering concluded on october 27 , 2017 , with the company raising $ 89,701,000 , net of offering costs , from the sale of 5,000,000 shares at $ 18.00 per share . our cash and cash equivalents and marketable securities totaled approximately $ 79,657,000 at december 31 , 2018 , a decrease of $ 11,318,000 , or 12 % , from the corresponding amount at the end of 2017 .


 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 cash flow and liquidity our financial position allows us to pursue our strategies of land entitlement , development , and conservation . accordingly , we have established well-defined priorities for our available cash , including investing in core operating segments to achieve profitable future growth . we have historically funded our operations with cash flows from operating activities , investment proceeds , and short-term borrowings from our bank credit facilities . in the past , we have also issued common stock and used the proceeds for capital investment activities . to enhance shareholder value , we will continue to make investments in our real estate segments to secure land entitlement approvals , build infrastructure for our developments , ensure adequate future water supplies , and provide funds for general land development activities . within our farming segment , we will make investments as needed to improve efficiency and add capacity to its operations when it is profitable to do so . on october 4 , 2017 , the company commenced a rights offering to common shareholders for additional working capital for general corporate purposes , including to fund general infrastructure costs and the development of buildings at trcc , to continue forward with entitlement and permitting programs for the centennial and grapevine communities and costs related to the preparation of the development of mv . the rights offering concluded on october 27 , 2017 , with the company raising $ 89,701,000 , net of offering costs , from the sale of 5,000,000 shares at $ 18.00 per share . our cash and cash equivalents and marketable securities totaled approximately $ 79,657,000 at december 31 , 2018 , a decrease of $ 11,318,000 , or 12 % , from the corresponding amount at the end of 2017 .
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 Suspicious Activity Report : for the year ended december 31 , 2018 , we had no material lease renewals . 34 during 2019 , we will continue to invest funds toward the achievement of entitlements , permits , and maps for our land and for master project infrastructure and vertical development within our active commercial and industrial development . securing entitlements for our land is a long , arduous process that can take several years and often involves litigation . during the next few years , our net income will fluctuate from year-to-year based upon , among other factors , commodity prices , production within our farming segment , the timing of land sales and the leasing of land and or industrial space within our industrial developments , and equity in earnings realized from our unconsolidated joint ventures . this management 's discussion and analysis of financial condition and results of operations provides a narrative discussion of our results of operations . it contains the results of operations for each operating segment of the business and is followed by a discussion of our financial position . it is useful to read the business segment information in conjunction with note 16 ( reporting segments and related information ) of the notes to consolidated financial statements . critical accounting policies the preparation of our consolidated financial statements in accordance with generally accepted accounting principles in the united states , or gaap , requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . we consider an accounting estimate to be critical if : ( 1 ) the accounting estimate requires us to make assumptions about matters that were highly uncertain at the time the accounting estimate was made , and ( 2 ) changes in the estimates that are likely to occur from period to period , or use of different estimates that we reasonably could have used in the current period , would have a material impact on our financial condition or results of operations . on an on-going basis , we evaluate our estimates , including those related to revenue recognition , impairment of long-lived assets , capitalization of costs , allocation of costs related to land sales and leases , stock compensation , our future ability to utilize deferred tax assets , and defined benefit retirement plans . we base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . management has discussed the development and selection of these critical accounting estimates with the audit committee of our board of directors and the audit committee has reviewed the foregoing disclosure . in addition , there are other items within our financial statements that require estimation , but are not deemed critical as defined above . changes in estimates used in these and other items could have a material impact on our financial statements . see also note 1 ( summary of significant accounting policies ) of the notes to consolidated financial statements , which discusses accounting policies that we have selected from acceptable alternatives . we believe the following critical accounting policies reflect our more significant judgments and estimates used in the preparation of the consolidated financial statements : revenue recognition – the company 's revenue is primarily derived from lease revenue from our rental portfolio , royalty revenue from mineral leases , sales of farm crops , sales of water , and land sales . revenue from leases with rent concessions or fixed escalations is recognized on a straight-line basis over the initial term of the related lease unless there is a considerable risk as to collectability . the financial terms of leases are contractually defined . lease revenue is not accrued when a tenant vacates the premises and ceases to make rent payments or files for bankruptcy . royalty revenues are contractually defined as to the percentage of royalty and are tied to production and market prices . our royalty arrangements generally require payment on a monthly basis with the payment based on the previous month 's activity . we accrue monthly royalty revenues based upon estimates and adjust to actual as we receive payments . from time to time the company sells easements over its land . the easements are either in the form of rights of access granted for such things as utility corridors or are in the form of conservation easements that generally require the company to divest its rights to commercially develop a portion of its land , but do not result in a change in ownership of the land or restrict the company from continuing other revenue generating activities on the land . sales of conservation easements are accounted for in accordance with the five-step model under accounting standards codification topic 606 , or asc 606. the five-step model requires that we ( i ) identify the contract with the customer , ( ii ) identify the performance obligations in the contract , ( iii ) determine the transaction price , including variable consideration to the extent that it is probable that a significant future reversal will not occur , ( iv ) allocate the transaction price to the respective performance obligations in the contract , and ( v ) recognize revenue when ( or as ) we satisfy the performance obligation . since conservation easements generally do not impose any significant continuing performance obligations on the company , revenue from conservation easement sales are generally recognized in the period the sale has closed and consideration has been received . story_separator_special_tag the company and majestic have successfully leased 67 % of this distribution facility prior to its completion , with the tenant taking occupancy in q4 of 2019. this new construction is building on the success in 2018 of fully leasing a 480,000 square foot building in a partnership with majestic . a potential disadvantage to our development strategy is our distance from the ports of los angeles and long beach in comparison to the warehouse/distribution centers located in the inland empire , a large industrial area located east of los angeles , which continues its expansion eastward beyond riverside and san bernardino , to include perris , moreno valley , and beaumont . as development in the inland empire continues to move east and farther away from the ports , our potential disadvantage of our distance from the ports is being mitigated . strong demand for large distribution facilities is driving development farther east in a search for large entitled parcels . during 2018 , vacancy rates in the inland empire stayed flat at 3.9 % compared to 3.7 % in 2017. this industrial market continues to see available supply remain at historic low levels . construction declined slightly during the fourth quarter with 20.5 million square feet under construction compared to 20.7 million in 2017. this new supply is currently meeting growing industrial demand . the low vacancy rates have led to a year-over-year increase in lease rates of 7.3 % within the inland empire . as lease rates increase in the inland empire , we may begin to have greater pricing advantages due to our lower land basis . during 2018 , vacancy rates in the northern los angeles industrial market , which includes the san fernando valley and santa clarita valley , approximated 1.6 % . rents have been increasing for the past six years and will likely continue to rise in future years as the vacancy rate is at historic lows and quality industrial space remains hard to find . during 2018 , average asking rents increased 8.5 % compared with 2017 , which have surpassed the historical peak which was seen in late 2007. industrial demand remains high and infill industrial demand remains higher still . future quarters will likely see greater construction activity as rents hit new highs and vacancy rates are at historic lows . demand for industrial space in this market will also continue to be driven by domestic and global consumption levels . as industrial vacancy rates are at historic lows , industrial users seeking larger spaces are having to go further north into neighboring kern county and particularly , the trcc which has attracted increased attention as market conditions continue to tighten . in 2018 , the los angeles and long beach port container traffic recorded its highest container total ever with 17.54 million twenty-foot equivalent units , or teu 's , up 3.8 % from 2017. teu is a measure of a ship 's cargo carrying capacity . the dimensions of one teu are equal to that of a standard shipping container measuring 20 feet long by 8 feet tall . we expect the commercial/industrial segment to continue to experience costs , net of amounts capitalized , primarily related to professional service fees , marketing costs , commissions , planning costs , and staffing costs as we continue to pursue development opportunities . these costs are expected to remain consistent with current levels of expense with any variability in the future tied to specific absorption transactions in any given year . the actual timing and completion of development is difficult to predict due to the uncertainties of the market . infrastructure development and marketing activities and costs could continue over several years as we develop our land holdings . we will also continue to evaluate land resources to determine the highest and best uses for our land holdings . future sales of land are dependent on market circumstances and specific opportunities . our goal in the future is to increase land value and create future revenue growth through planning and development of commercial and industrial properties . 40 real estate – resort/residential we are in the preliminary stages of development ; hence , no revenues are attributed to this segment for these reporting periods . in 2018 , resort/residential segment expenses decreased $ 425,000 to $ 1,530,000 , or 22 % , when compared to $ 1,955,000 in 2017 . the reassignment of resources within the company translated to increases in qualifying costs , including payroll and overhead costs within resort/residential which in turn translated to an increase in costs being capitalized into our real estate development projects by $ 250,000 when compared to 2017. in addition , we experienced savings in professional services of $ 163,000 in 2018. in 2017 , resort/residential segment expenses increased $ 325,000 primarily due to reduced capitalization of payroll and overhead costs that in the prior years were identified to be incremental to our mixed use master plan development projects . our resort/residential segment activities in include land entitlement , land planning and pre-construction engineering and conservation activities . we have three major resort/residential communities within this segment : centennial , grapevine , and mv . for centennial , the board of supervisors in december 2018 , by a vote of 4-1 , affirmed the recommendation of the los angeles county regional planning commission and department of regional planning that centennial be approved . for grapevine , we are currently working with kern county to defend litigation related to the approved eir . for a more complete discussion of the litigation and approval process , please see note 14 ( commitments and contingencies ) to the notes to consolidated financial statements . for mv , we have a fully entitled project and received approval of tentative tract map 1 for our first four phases of development . the timing of mv development in the coming years will be dependent on the strength of

