Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Cash flows from operating activities:
Net income	$ 986	$ 860
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,073	2,283
Amortization of deferred loan costs	273	261
Amortization of notes payable discount	149	0
Gain on sale of marketable securities	0	(1)
Loss on sale or disposal of assets	(8)	(12)
Bad debt expense	317	132
Share-based compensation	356	78
Changes in operating assets and liabilities:
Escrows and acquisition deposits	2,143	2,378
Accrued rents and accounts receivable	(777)	(551)
Unamortized lease commissions	(263)	(280)
Prepaid expenses and other assets	162	177
Accounts payable and accrued expenses	(2,621)	(2,980)
Tenants' security deposits	127	45
Net cash provided by operating activities	3,933	2,414
Cash flows from investing activities:
Acquisitions of real estate	(25,700)	0
Additions to real estate	(1,197)	(2,893)
Investments in marketable securities	0	(750)
Proceeds from sales of marketable securities	0	2,614
Net cash used in investing activities	(26,897)	(1,029)
Cash flows from financing activities:
Distributions paid to OP unitholders	(5,001)	(3,623)
Payments of exchange offer costs	(34)	(225)
Proceeds from notes payable	0	6,956
Proceeds from revolving credit facility, net	26,400	0
Repayments of notes payable	(1,017)	(713)
Payments of loan origination costs	(1,085)	(1,187)
Net cash provided by financing activities	19,263	1,208
Net increase (decrease) in cash and cash equivalents	(3,701)	2,593
Cash and cash equivalents at beginning of period	6,544	5,695
Cash and cash equivalents at end of period	2,843	8,288
Supplemental disclosure of cash flow information:
Cash paid for interest	2,146	1,671
Non cash investing and financing activities:
Disposal of fully depreciated real estate	130	11
Financed insurance premiums	883	31
Value of shares issued under dividend reinvestment plan	23	22
Accrued offering costs	20	54
Value of common shares exchanged for OP units	782	4,917
Change in fair value of available-for-sale securities	303	766
Change in fair value of cash flow hedge	$ (268)	$ 0

Whitestone REIT Operating Partnership, L.P. 10-Q