For the Years Ended December 31,
2013  2012
OPERATING ACTIVITIES
net income $40,932 $54,229
Add (deduct) items not affecting cash
Fair value gains [5] (13,070) (37,726)
Depreciation and amortization 2,233 2,145
Non‑cash compensation expense 385 579
equity income (1,296) (758)
Deferred income taxes 9,350 19,234
Loss on disposition 1,101 1,029
Financing costs [20] 35,231 34,633
interest paid [24] (35,156) (34,883)
Net change in non‑cash operating activities [24] (630) 7,545
Cash provided by operating activities $39,080 $46,027
FINANCING ACTIVITIES
Increase in deferred financing (3,425) (1,260)
Proceeds on issuance of common shares 869 46,486
repayment of subordinated debentures (10,000) ‑
Mortgage financing 190,152 56,291
mortgages repaid on maturity (70,015) (27,237)
mortgage principal repayments (30,043) (18,829)
Proceeds from construction loans 21,223 14,062
Construction loans repaid on maturity (20,511) ‑
Distributions paid to non‑controlling interest (918) (909)
Dividends (28,094) (24,726)
Cash provided by financing activities $49,238 $43,878
INVESTING ACTIVITIES
Decrease in restricted cash 3,160 (65)
Acquisition of non‑controlling interest ‑ (17)
Investments in joint ventures 116 (1,112)
Net proceeds on sale of investment properties 43,122 34,326
Acquisition and development of investment properties, net of debt assumed (141,154) (86,426)
Capital expenditures (22,610) (23,233)
Cash used in investing activities $(117,366) $(76,527)
Net (decrease) increase in cash (29,048) 13,378
cash, beginning of the year 56,726 43,348
Cash, end of year $27,678 $56,726
See accompanying notes to the consolidated financial statements.
Consolidated Statements of Cash Flows
in thousands of Canadian dollars
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