INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

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

	2016 Estimate			2015 Actual			2014 Actual
Net income	$	24,422		$	20,517		$	22,116
Straight-line rent adjustments		(2,261	)		(996	)		(1,480	)
Book gain on sale—(in excess of) less than tax gain		(2,281	)		(663	)		10,522
Rent received in advance, net		584			(42	)		(180	)
Adjustments for above/below market leases		(643	)		(564	)		(253	)
Non-deductible portion of restricted stock expense		1,193			614			(149	)
Federal excise tax, non-deductible		6			174			302
Book depreciation in excess of tax depreciation		4,248			3,799			2,970
Property acquisition costs—capitalized for tax purposes		605			793			417
Impairment loss		—			—			1,093
Other adjustments		(312	)		(193	)		26

Federal taxable income	$	25,561		$	23,439		$	35,384

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

	2016 Estimate			2015 Actual			2014 Actual
Dividends paid	$	29,135		$	26,179		$	24,117
Dividend reinvestment plan(a)		181			228			197

		29,316			26,407			24,314
Less: Spillover dividends designated to previous year		(15,209	)		(18,177	)		(7,107	)
Plus: Dividends designated from following year		11,454			15,209			18,177

Dividends paid deduction	$	25,561		$	23,439		$	35,384


(a)	Reflects the up to 5% discount on common stock purchased through the dividend reinvestment plan.