INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

The following unaudited table reconciles financial statement net income to federal taxable income for the years indicated (amounts in thousands):

	2012 Estimate			2011 Actual			2010 Actual

Net income	$	32,320		$	13,724		$	9,306
Straight line rent adjustments		(1,354	)		(1,419	)		(693	)
Financial statement gain on sale in excess of tax gain		(315	)		61			557
Rent received in advance, net		111			(78	)		205
Financial statement adjustment for above/below market leases		2			31			(442	)
Non-deductible portion of restricted stock expense		341			300			249
Federal excise tax, non-deductible		290			—			—
Financial statement depreciation in excess of tax depreciation		1,021			1,042			1,051
Property acquisition costs—capitalize for tax purposes		823			268			1,010
Other adjustments		(68	)		(516	)		542

Federal taxable income	$	33,171		$	13,413		$	11,785

The following unaudited table reconciles cash dividends paid with the dividends paid deduction for the years indicated (amounts in thousands):

	2012 Estimate		2011 Actual			2010 Actual

Dividends paid	$	24,255	$	14,758		$	14,123
Dividend reinvestment plan(a)		256		153			108

		24,511		14,911			14,231
Less: Spillover dividends designated to previous year		—		(1,448	)		(3,844	)
Plus: Dividends designated from following year		8,710		—			1,448

Dividends paid deduction(b)	$	33,221	$	13,463		$	11,835

(a): Amount reflects the 5% discount on common stock purchased through the dividend reinvestment plan.
(b): Dividends paid deduction is slightly higher than federal taxable income in 2012, 2011 and 2010 to account for adjustments made to federal taxable income as a result of the impact of the alternative minimum tax.