Note 5. Real Estate Properties

As of December 31, 2015, we owned 71 properties (91 buildings), with an undepreciated carrying value of $1,699,478 excluding one property (one building) classified as discontinued operations with an undepreciated carrying value of $12,260. We generally lease space in our properties on a gross lease or modified gross lease basis pursuant to fixed term operating leases expiring between 2016 and 2030. Our leases generally require us to pay all or some property operating expenses and to provide all or most property management services. During the year ended December 31, 2015, we entered into 51 leases for 811,190 rentable square feet for a weighted (by rentable square feet) average lease term of 7.5 years and we made commitments for approximately $20,571 of leasing related costs. We have estimated unspent leasing related obligations of $12,653 as of December 31, 2015.

Our future minimum lease payments related to our properties, excluding one property (one building) classified as discontinued operations, and estimated real estate tax and other expense reimbursements scheduled to be received during the current terms of the existing leases as of December 31, 2015 are as follows:


2016		215,342
2017		188,941
2018		161,162
2019		133,898
2020		93,792
Thereafter		235,064
	$	1,028,199

Certain of our government tenants have the right to terminate their leases before the lease term expires. As of December 31, 2015, excluding one property (one building) classified as discontinued operations, government tenants who currently represent approximately 5.2% of our total future minimum lease payments have currently exercisable rights to terminate their leases before the stated terms of their leases expire. In 2016, 2017, 2018, 2019, 2020, 2022 and 2023, early termination rights become exercisable by other government tenants who currently represent an additional approximately 5.8%, 3.2%, 1.6%, 9.5%, 6.8%, 4.1% and 2.1% of our total future minimum lease payments, respectively. In addition as of December 31, 2015, 15 of our government tenants have the currently exercisable right to terminate their leases if their respective legislature or other funding authority does not appropriate the funding necessary for the government tenant to meet its lease obligations. These 15 tenants represent approximately 17.2% of our total future minimum lease payments as of December 31, 2015.

Acquisition Activities

In January 2016, we acquired an office property (one building) located in Sacramento, CA with 338,796 rentable square feet for a purchase price of $79,765, excluding acquisition related costs. This property is majority leased to the State of California.

Disposition Activities – Continuing Operations

In February 2015, one of our U.S. Government tenants exercised its option to acquire the office property (one building) it leased from us located in Riverdale, MD with 337,500 rentable square feet. The sale price was $30,600, excluding closing costs. We recognized no gain or loss on this sale.

In May 2015, we began marketing for sale an office property (one building) located in Savannah, GA with 35,228 rentable square feet and a net book value of $3,071 as of December 31, 2015. We can provide no assurance that the sale of this property will occur or what the terms for any such sale would be. We have classified this property as held for sale as of December 31, 2015. The results of operations for this property are included in continuing operations in our consolidated financial statements. Summarized balance sheet information for this property is as follows:


	December 31,
	2015
Real estate properties, net	$	3,071
Rents receivable		1
Other assets		26
Assets of property held for sale	$	3,098

Other liabilities	$	43
Liabilities of property held for sale	$	43

Disposition Activities – Discontinued Operations

We are marketing for sale an office property (one building) located in Falls Church, VA with 164,746 rentable square feet and a net book value of $12,282 at December 31, 2015. We can provide no assurance that the sale of this property will occur or what the terms for any such sale would be.

Results of operations for two properties (two buildings) we sold in 2013, two properties (two buildings) we sold in 2014 and the Falls Church, VA property (one building) disclosed above which qualified as held for sale prior to our adoption in 2014 of ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, are classified as discontinued operations in our consolidated financial statements. Summarized balance sheet and income statement information for the properties classified as discontinued operations is as follows:

Balance Sheets:


	December 31,		December 31,
	2015		2014
Real estate properties, net	$	12,260	$	12,260
Rents receivable		-		782
Other assets		208		123
Assets of discontinued operations	$	12,468	$	13,165

Other liabilities	$	54	$	150
Liabilities of discontinued operations	$	54	$	150

Statements of Operations:


	Year Ended December 31,
	2015		2014		2013
Rental income	$	114	$	1,673	$	4,580
Real estate taxes		(92)		(427)		(678)
Utility expenses		(161)		(226)		(539)
Other operating expenses		(272)		(459)		(966)
Depreciation and amortization		—		—		(1,025)
General and administrative		(114)		(181)		(287)
Loss on asset impairment		—		—		(10,142)
Increase in carrying value of asset held for sale		—		2,344		—
Net gain on sale of properties		—		774		8,168
Income (loss) from discontinued operations	$	(525)	$	3,498	$	(889)