on november 14 , 2018 , in connection with the 2018 offering , we issued 2,702,500 shares of our common stock , par value $ 0.01 per share , at a public offering price of $ 33.00 per share , for net proceeds of approximately $ 84.8 million ( after underwriters ' discounts and offering costs ) . we contributed the net proceeds from the 2018 offering to the op in exchange for 2,702,500 op units , and the op in turn used a majority of the net proceeds to repay the $ 50.0 million outstanding under the $ 60 million credit facility and the $ 30.0 million outstanding under the $ 30 million bridge facility ( see notes 6 and 8 to our consolidated financial statements ) . we have elected to be taxed as a reit under sections 856 through 860 of the code , and expect to continue to qualify as a reit . to qualify as a reit , we must meet a number of organizational and operational requirements , including a requirement that we distribute at least 90 % of our reit taxable income to our stockholders . as a reit , we will be subject to federal income tax on our undistributed reit taxable income and net capital gain and to a 4 % nondeductible excise tax on any amount by which distributions we pay with respect to any calendar year are less than the sum of ( 1 ) 85 % of our ordinary income , ( 2 ) 95 % of our capital gain net income and ( 3 ) 100 % of our undistributed income from prior years . we believe we qualify for taxation as a reit under the code , and we intend to continue to operate in such a manner , but no assurance can be given that we will operate in a manner so as to qualify as a reit . taxable income from certain non-reit activities is managed through a trs and is subject to applicable federal , state , and local income and margin taxes . we had no significant taxes associated with our trs for the years ended december 31 , 2018 , 2017 and 2016 . 48 components of our revenues and expenses revenues rental income . our earnings are primarily attributable to the rental revenue from our multifamily properties . we anticipate that the leases we enter into for our multifamily properties will typically be for one year or less on average . other income . other income includes ancillary income earned from tenants such as application fees , late fees , laundry fees , utility reimbursements , and other rental related fees charged to tenants . expenses property operating expenses . property operating expenses include property maintenance costs , salary and employee benefit costs , utilities , casualty-related expenses and recoveries and other property operating costs . acquisition costs . acquisition costs include the costs to acquire additional properties . on october 1 , 2016 , we early adopted accounting standards update ( “ asu ” ) 2017-01 , which requires an entity to capitalize acquisition costs associated with an acquisition that is determined to be an acquisition of an asset as opposed to an acquisition of a business . prior to our adoption of asu 2017-01 , acquisition costs were expensed as incurred . we believe most future acquisition costs will be capitalized in accordance with asu 2017-01 . real estate taxes and insurance . real estate taxes include the property taxes assessed by local and state authorities depending on the location of each property . insurance includes the cost of commercial , general liability , and other needed insurance for each property . property management fees . property management fees include fees paid to bh , our property manager , or other third party management companies for managing each property ( see note 10 to our consolidated financial statements ) . advisory and administrative fees . advisory and administrative fees include the fees paid to our adviser pursuant to the advisory agreement ( see note 11 to our consolidated financial statements ) . corporate general and administrative expenses . corporate general and administrative expenses include , but are not limited to , audit fees , legal fees , listing fees , board of director fees , equity-based compensation expense , investor relations costs and payments of reimbursements to our adviser for operating expenses . corporate general and administrative expenses and the advisory and administrative fees paid to our adviser ( including advisory and administrative fees on properties defined in the advisory agreement as new assets ) will not exceed 1.5 % of average real estate assets per calendar year ( or part thereof that the advisory agreement is in effect ) , calculated in accordance with the advisory agreement , or the expense cap . the expense cap does not limit the reimbursement by us of expenses related to securities offerings paid by our adviser . the expense cap also does not apply to legal , accounting , financial , due diligence , and other service fees incurred in connection with mergers and acquisitions , extraordinary litigation , or other events outside our ordinary course of business or any out-of-pocket acquisition or due diligence expenses incurred in connection with the acquisition or disposition of real estate assets . property general and administrative expenses . property general and administrative expenses include the costs of marketing , professional fees , general office supplies , and other administrative related costs of each property . depreciation and amortization . depreciation and amortization costs primarily include depreciation of our multifamily properties and amortization of acquired in-place leases . other income and expense interest expense . interest expense primarily includes the cost of interest expense on debt , the amortization of deferred financing costs and the related impact of interest rate derivatives used to manage our interest rate risk . story_separator_special_tag property taxes incurred in the first year of ownership may be significantly less than subsequent years since the purchase price of the property may trigger a significant increase in assessed value by the taxing authority in subsequent years , increasing the cost of real estate taxes . property management fees . property management fees were $ 4.3 million for the year ended december 31 , 2017 compared to $ 4.0 million for the year ended december 31 , 2016 , which was an increase of approximately $ 0.3 million . the increase between the periods was primarily due to increases in rental income and other income , which the fee is primarily based on . advisory and administrative fees . advisory and administrative fees were $ 7.4 million for the year ended december 31 , 2017 compared to $ 6.8 million for the year ended december 31 , 2016 , which was an increase of approximately $ 0.6 million . the amount incurred during the years ended december 31 , 2017 and 2016 represents the maximum fee allowed on properties defined as contributed assets under the advisory agreement plus approximately $ 2.0 million and $ 1.4 million , respectively , of advisory and administrative fees incurred on certain properties defined as new assets . for the year ended december 31 , 2017 , our adviser elected to voluntarily waive the advisory and administrative fees incurred on the five properties we acquired subsequent to october 2016 , which totaled approximately $ 2.4 million . for the year ended december 31 , 2016 , our adviser elected to voluntarily waive the advisory and administrative fees incurred on the two properties we acquired subsequent to october 2016 , which totaled less than $ 0.1 million . the advisory and administrative fees waived by our adviser for the years ended december 31 , 2017 and 2016 are considered to be permanently waived for the periods . our adviser is not contractually obligated to waive fees on new assets in the future and may cease waiving fees on new assets at its discretion . advisory and administrative fees may increase in future periods as we acquire additional properties , which will be classified as new assets . corporate general and administrative expenses . corporate general and administrative expenses were $ 6.3 million for the year ended december 31 , 2017 compared to $ 4.0 million for the year ended december 31 , 2016 , which was an increase of approximately $ 2.3 million . the increase between periods primarily relates to $ 3.1 million of equity-based compensation expense recognized during the year ended december 31 , 2017 related to the grants of restricted stock units to our directors and officers pursuant to our 2016 ltip , compared to $ 0.8 million of equity-based compensation expense recognized during the year ended december 31 , 2016 ( see note 8 to our consolidated financial statements ) . subject to the expense cap , corporate general and administrative expenses may increase in future periods as we acquire additional properties . property general and administrative expenses . property general and administrative expenses were $ 6.2 million for the year ended december 31 , 2017 compared to $ 5.9 million for the year ended december 31 , 2016 , which was an increase of approximately $ 0.3 million . the increase between the periods was primarily due to our acquisition and disposition activity in 2016 and 2017 and the timing of the transactions , as described above . the increase between the periods was also due to a $ 0.3 million , or 24.4 % , increase in advertising and promotional costs . 53 depreciation and amortization . depreciation and amortization costs were $ 48.8 million for the year ended december 31 , 2017 compared to $ 35.6 million for the year ended december 31 , 2016 , which was an increase of approximately $ 13.2 million . the increase between the periods was primaril y due to the amortization of intangible lease assets of $ 8.9 million related to seven properties for the year ended december 31 , 2017 compared to $ 1.4 million related to five properties for the year ended december 31 , 2016 , which was an increase of approxi mately $ 7.5 million , as well as the acquisition of three properties subsequent to december 31 , 2016. the amortization of intangible lease assets over a six-month period from the date of acquisition is expected to increase the amortization expense during th e initial year of operations for each property . the increase between the periods was partially offset by a reduction in depreciation expense related to the disposition of nine properties subsequent to december 31 , 2016. other income and expense interest expense . interest expense was $ 29.6 million for the year ended december 31 , 2017 compared to $ 20.2 million for the year ended december 31 , 2016 , which was an increase of approximately $ 9.4 million . the increase between the periods was primarily due to an increase in interest on debt and a reduction in gain recognized related to the ineffective portion of changes in fair value of our interest rate swap derivatives designated as cash flow hedges ( see “ debt , derivatives and hedging activity – interest rate swap agreements ” below ) , as shown in the table below . the following table details the various costs included in interest expense for the years ended december 31 , 2017 and 2016 ( in thousands ) : replace_table_token_15_th loss on extinguishment of debt and modification costs . loss on extinguishment of debt and modification costs was $ 5.7 million for the year ended december 31 , 2017 compared to $ 1.7 million for the year ended december 31 , 2016 , which was an increase of approximately $ 4.0 million . the increase between the periods was primarily due to increases in prepayment penalties and defeasance

cash flows from operating activities . during the year ended december 31 , 2018 , net cash provided by operating activities was $ 41.7 million compared to net cash provided by operating activities of $ 37.5 million for the year ended december 31 , 2017. the change in cash flows from operating activities was mainly due to an increase in total revenues , decreases in total property operating expenses , prepayment penalties and defeasance costs and debt modification and other extinguishment costs paid and changes in operating assets and liabilities . cash flows from investing activities . during the year ended december 31 , 2018 , net cash used in investing activities was $ 137.0 million compared to net cash provided by investing activities of $ 2.3 million for the year ended december 31 , 2017. the change in cash flows from investing activities was mainly due to a decrease in net proceeds from sales of real estate . we sold one property for net proceeds of approximately $ 29.6 million during the period in 2018 ; we sold nine properties for net proceeds of approximately $ 224.4 million during the period in 2017. the change in cash flows from investing activities was partially offset by the acquisition of three properties for a combined purchase price of approximately $ 131.0 million during the period in 2018 compared to the acquisition of three properties for a combined purchase price of approximately $ 197.2 million during the period in 2017. cash flows from financing activities .


 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 operating activities . during the year ended december 31 , 2018 , net cash provided by operating activities was $ 41.7 million compared to net cash provided by operating activities of $ 37.5 million for the year ended december 31 , 2017. the change in cash flows from operating activities was mainly due to an increase in total revenues , decreases in total property operating expenses , prepayment penalties and defeasance costs and debt modification and other extinguishment costs paid and changes in operating assets and liabilities . cash flows from investing activities . during the year ended december 31 , 2018 , net cash used in investing activities was $ 137.0 million compared to net cash provided by investing activities of $ 2.3 million for the year ended december 31 , 2017. the change in cash flows from investing activities was mainly due to a decrease in net proceeds from sales of real estate . we sold one property for net proceeds of approximately $ 29.6 million during the period in 2018 ; we sold nine properties for net proceeds of approximately $ 224.4 million during the period in 2017. the change in cash flows from investing activities was partially offset by the acquisition of three properties for a combined purchase price of approximately $ 131.0 million during the period in 2018 compared to the acquisition of three properties for a combined purchase price of approximately $ 197.2 million during the period in 2017. cash flows from financing activities .
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 Suspicious Activity Report : on november 14 , 2018 , in connection with the 2018 offering , we issued 2,702,500 shares of our common stock , par value $ 0.01 per share , at a public offering price of $ 33.00 per share , for net proceeds of approximately $ 84.8 million ( after underwriters ' discounts and offering costs ) . we contributed the net proceeds from the 2018 offering to the op in exchange for 2,702,500 op units , and the op in turn used a majority of the net proceeds to repay the $ 50.0 million outstanding under the $ 60 million credit facility and the $ 30.0 million outstanding under the $ 30 million bridge facility ( see notes 6 and 8 to our consolidated financial statements ) . we have elected to be taxed as a reit under sections 856 through 860 of the code , and expect to continue to qualify as a reit . to qualify as a reit , we must meet a number of organizational and operational requirements , including a requirement that we distribute at least 90 % of our reit taxable income to our stockholders . as a reit , we will be subject to federal income tax on our undistributed reit taxable income and net capital gain and to a 4 % nondeductible excise tax on any amount by which distributions we pay with respect to any calendar year are less than the sum of ( 1 ) 85 % of our ordinary income , ( 2 ) 95 % of our capital gain net income and ( 3 ) 100 % of our undistributed income from prior years . we believe we qualify for taxation as a reit under the code , and we intend to continue to operate in such a manner , but no assurance can be given that we will operate in a manner so as to qualify as a reit . taxable income from certain non-reit activities is managed through a trs and is subject to applicable federal , state , and local income and margin taxes . we had no significant taxes associated with our trs for the years ended december 31 , 2018 , 2017 and 2016 . 48 components of our revenues and expenses revenues rental income . our earnings are primarily attributable to the rental revenue from our multifamily properties . we anticipate that the leases we enter into for our multifamily properties will typically be for one year or less on average . other income . other income includes ancillary income earned from tenants such as application fees , late fees , laundry fees , utility reimbursements , and other rental related fees charged to tenants . expenses property operating expenses . property operating expenses include property maintenance costs , salary and employee benefit costs , utilities , casualty-related expenses and recoveries and other property operating costs . acquisition costs . acquisition costs include the costs to acquire additional properties . on october 1 , 2016 , we early adopted accounting standards update ( “ asu ” ) 2017-01 , which requires an entity to capitalize acquisition costs associated with an acquisition that is determined to be an acquisition of an asset as opposed to an acquisition of a business . prior to our adoption of asu 2017-01 , acquisition costs were expensed as incurred . we believe most future acquisition costs will be capitalized in accordance with asu 2017-01 . real estate taxes and insurance . real estate taxes include the property taxes assessed by local and state authorities depending on the location of each property . insurance includes the cost of commercial , general liability , and other needed insurance for each property . property management fees . property management fees include fees paid to bh , our property manager , or other third party management companies for managing each property ( see note 10 to our consolidated financial statements ) . advisory and administrative fees . advisory and administrative fees include the fees paid to our adviser pursuant to the advisory agreement ( see note 11 to our consolidated financial statements ) . corporate general and administrative expenses . corporate general and administrative expenses include , but are not limited to , audit fees , legal fees , listing fees , board of director fees , equity-based compensation expense , investor relations costs and payments of reimbursements to our adviser for operating expenses . corporate general and administrative expenses and the advisory and administrative fees paid to our adviser ( including advisory and administrative fees on properties defined in the advisory agreement as new assets ) will not exceed 1.5 % of average real estate assets per calendar year ( or part thereof that the advisory agreement is in effect ) , calculated in accordance with the advisory agreement , or the expense cap . the expense cap does not limit the reimbursement by us of expenses related to securities offerings paid by our adviser . the expense cap also does not apply to legal , accounting , financial , due diligence , and other service fees incurred in connection with mergers and acquisitions , extraordinary litigation , or other events outside our ordinary course of business or any out-of-pocket acquisition or due diligence expenses incurred in connection with the acquisition or disposition of real estate assets . property general and administrative expenses . property general and administrative expenses include the costs of marketing , professional fees , general office supplies , and other administrative related costs of each property . depreciation and amortization . depreciation and amortization costs primarily include depreciation of our multifamily properties and amortization of acquired in-place leases . other income and expense interest expense . interest expense primarily includes the cost of interest expense on debt , the amortization of deferred financing costs and the related impact of interest rate derivatives used to manage our interest rate risk . story_separator_special_tag property taxes incurred in the first year of ownership may be significantly less than subsequent years since the purchase price of the property may trigger a significant increase in assessed value by the taxing authority in subsequent years , increasing the cost of real estate taxes . property management fees . property management fees were $ 4.3 million for the year ended december 31 , 2017 compared to $ 4.0 million for the year ended december 31 , 2016 , which was an increase of approximately $ 0.3 million . the increase between the periods was primarily due to increases in rental income and other income , which the fee is primarily based on . advisory and administrative fees . advisory and administrative fees were $ 7.4 million for the year ended december 31 , 2017 compared to $ 6.8 million for the year ended december 31 , 2016 , which was an increase of approximately $ 0.6 million . the amount incurred during the years ended december 31 , 2017 and 2016 represents the maximum fee allowed on properties defined as contributed assets under the advisory agreement plus approximately $ 2.0 million and $ 1.4 million , respectively , of advisory and administrative fees incurred on certain properties defined as new assets . for the year ended december 31 , 2017 , our adviser elected to voluntarily waive the advisory and administrative fees incurred on the five properties we acquired subsequent to october 2016 , which totaled approximately $ 2.4 million . for the year ended december 31 , 2016 , our adviser elected to voluntarily waive the advisory and administrative fees incurred on the two properties we acquired subsequent to october 2016 , which totaled less than $ 0.1 million . the advisory and administrative fees waived by our adviser for the years ended december 31 , 2017 and 2016 are considered to be permanently waived for the periods . our adviser is not contractually obligated to waive fees on new assets in the future and may cease waiving fees on new assets at its discretion . advisory and administrative fees may increase in future periods as we acquire additional properties , which will be classified as new assets . corporate general and administrative expenses . corporate general and administrative expenses were $ 6.3 million for the year ended december 31 , 2017 compared to $ 4.0 million for the year ended december 31 , 2016 , which was an increase of approximately $ 2.3 million . the increase between periods primarily relates to $ 3.1 million of equity-based compensation expense recognized during the year ended december 31 , 2017 related to the grants of restricted stock units to our directors and officers pursuant to our 2016 ltip , compared to $ 0.8 million of equity-based compensation expense recognized during the year ended december 31 , 2016 ( see note 8 to our consolidated financial statements ) . subject to the expense cap , corporate general and administrative expenses may increase in future periods as we acquire additional properties . property general and administrative expenses . property general and administrative expenses were $ 6.2 million for the year ended december 31 , 2017 compared to $ 5.9 million for the year ended december 31 , 2016 , which was an increase of approximately $ 0.3 million . the increase between the periods was primarily due to our acquisition and disposition activity in 2016 and 2017 and the timing of the transactions , as described above . the increase between the periods was also due to a $ 0.3 million , or 24.4 % , increase in advertising and promotional costs . 53 depreciation and amortization . depreciation and amortization costs were $ 48.8 million for the year ended december 31 , 2017 compared to $ 35.6 million for the year ended december 31 , 2016 , which was an increase of approximately $ 13.2 million . the increase between the periods was primaril y due to the amortization of intangible lease assets of $ 8.9 million related to seven properties for the year ended december 31 , 2017 compared to $ 1.4 million related to five properties for the year ended december 31 , 2016 , which was an increase of approxi mately $ 7.5 million , as well as the acquisition of three properties subsequent to december 31 , 2016. the amortization of intangible lease assets over a six-month period from the date of acquisition is expected to increase the amortization expense during th e initial year of operations for each property . the increase between the periods was partially offset by a reduction in depreciation expense related to the disposition of nine properties subsequent to december 31 , 2016. other income and expense interest expense . interest expense was $ 29.6 million for the year ended december 31 , 2017 compared to $ 20.2 million for the year ended december 31 , 2016 , which was an increase of approximately $ 9.4 million . the increase between the periods was primarily due to an increase in interest on debt and a reduction in gain recognized related to the ineffective portion of changes in fair value of our interest rate swap derivatives designated as cash flow hedges ( see “ debt , derivatives and hedging activity – interest rate swap agreements ” below ) , as shown in the table below . the following table details the various costs included in interest expense for the years ended december 31 , 2017 and 2016 ( in thousands ) : replace_table_token_15_th loss on extinguishment of debt and modification costs . loss on extinguishment of debt and modification costs was $ 5.7 million for the year ended december 31 , 2017 compared to $ 1.7 million for the year ended december 31 , 2016 , which was an increase of approximately $ 4.0 million . the increase between the periods was primarily due to increases in prepayment penalties and defeasance

