Page 40 - Apple REIT 9 2008 Annual Report

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Apple REIT Nine, Inc.
Consolidated Statements of Cash Flows
(in thousands)
For the period
November 9, 2007
(initial capitalization)
YearEnded through
December 31, December 31,
2008 2007
Cash flows from operating activities:
Net income (loss)....................................................................................................................... $ 2,152 $ (17)
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Depreciation....................................................................................................................... 2,277 -
Amortization of deferred financing costs and fair value adjustments................................ 10 -
Stock option expense.......................................................................................................... 26 -
Changes in operating assets and liabilities:
Increase in funds due from third party managers............................................................... (1,680) -
Decrease in other assets. .................................................................................................... 336 -
Increase in accounts payable and accrued expenses.......................................................... 196 15
Net cash provided by (used in) operating activities.................................................... 3,317 (2)
Cash flows used in investing activities:
Cash paid for the acquisition of hotel properties. .............................................................. (311,052) -
Deposits and other disbursements for potential acquisitions............................................. (4,176) -
Capital improvements and other investing activities......................................................... (94) -
Net cash used in investing activities........................................................................... (315,322) -
Cash flows from financing activities:
Net proceeds (disbursements) related to issuance of common shares............................... 400,779 (177)
Distributions paid to common shareholders....................................................................... (13,012) -
Payments of notes payable................................................................................................. (67) -
Deferred financing costs..................................................................................................... (371) -
Borrowings from (payments on) line of credit................................................................... (151) 151
Net cash provided by (used in) financing activities.................................................... 387,178 (26)
Increase (decrease) in cash and cash equivalents................................................................. 75,173 (28)
Cash and cash equivalents, beginning of period................................................................... 20 48
Cash and cash equivalents, end of period............................................................................. $ 75,193 $ 20
Supplemental information:
Interest paid........................................................................................................................ $ 229 $ 2
Non-cash transactions:
Notes payable assumed in acquisitions.............................................................................. $ 38,270 $ -
Other assets assumed in acquisitions................................................................................. $ 2,795 $ -
Other liabilities assumed in acquisitions............................................................................ $ 3,303 $ -
See accompanying notes to consolidated financial statements.
The Company was initially capitalized on November 9, 2007 and commenced operations on July 31, 2008.