Note 3 — Real Estate Investments

There were no real estate assets acquired or liabilities assumed during the three months ended March 31, 2016 or 2015.

The following table presents future minimum base cash rental payments due to the Company, excluding future minimum base cash rental payments related to the Company's unconsolidated joint venture, subsequent to March 31, 2016. These amounts exclude contingent rental payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items.



(In thousands)	Future Minimum Base Cash Rental Payments
April 1, 2016 - December 31, 2016	$	77,008
2017	104,977
2018	102,941
2019	94,835
2020	95,310
Thereafter	552,608
Total	$	1,027,679

The following table lists the tenants whose annualized cash rent represented greater than 10% of total annualized cash rent as of March 31, 2016 and 2015, including annualized cash rent related to the Company's unconsolidated joint venture:



		March 31,
Property Portfolio	Tenant	2016	2015
Worldwide Plaza	Cravath, Swaine & Moore, LLP	16%	16%
Worldwide Plaza	Nomura Holdings America, Inc.	11%	11%

The termination, delinquency or non-renewal of any of the above tenants may have a material adverse effect on the Company's operations.

Intangible Assets and Liabilities

Acquired intangible assets and liabilities as of March 31, 2016 and December 31, 2015 consist of the following:



	March 31, 2016
(In thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible assets:
In-place leases	$	113,310	$	33,998	$	79,312
Other intangibles	3,804		509		3,295
Above-market leases	20,398		4,073		16,325
Total acquired intangible assets	$	137,512	$	38,580	$	98,932
Intangible lease liabilities:
Below-market leases	$	77,054	$	22,959	$	54,095
Above-market ground lease liability	17,968		1,064		16,904
Total market lease intangibles	$	95,022	$	24,023	$	70,999



	December 31, 2015
(In thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible assets:
In-place leases	$	113,392	$	31,120	$	82,272
Other intangibles	3,804		429		3,375
Above-market leases	20,398		3,713		16,685
Total acquired intangible assets	$	137,594	$	35,262	$	102,332
Intangible lease liabilities:
Below-market leases	$	77,177	$	21,110	$	56,067
Above-market ground lease liability	17,968		952		17,016
Total market lease intangibles	$	95,145	$	22,062	$	73,083

The following table discloses amounts recognized within the consolidated statements of operations and comprehensive loss related to amortization of in-place leases and other intangibles, amortization and accretion of above- and below-market lease assets and liabilities, net and the amortization of above-market ground lease, for the periods presented:



	Three Months Ended March 31,
(In thousands)	2016			2015
Amortization of in-place leases and other intangibles⁽¹⁾	$	3,040		$	6,170
Amortization and (accretion) of above- and below market leases, net⁽²⁾	$	(1,612	)	$	(2,959	)
Amortization of above-market ground lease⁽³⁾	$	(112	)	$	(112	)

_______________


(1)	Reflected within depreciation and amortization expense.


(2)	Reflected within rental income.


(3)	Reflected within hotel expenses.

The following table provides the projected amortization expense and adjustments to revenues for the next five years as of March 31, 2016:



	April 1, 2016 - December 31, 2016			2017			2018			2019			2020
In-place leases	$	7,705		$	9,612		$	8,655		$	8,271		$	8,033
Other intangibles	241			321			321			321			321
Total to be included in depreciation and amortization expense	$	7,946		$	9,933		$	8,976		$	8,592		$	8,354

Above-market lease assets	$	(1,068	)	$	(1,420	)	$	(1,420	)	$	(1,420	)	$	(1,407	)
Below-market lease liabilities	5,476			6,660			5,875			5,490			5,250
Total to be included in rental income	$	4,408		$	5,240		$	4,455		$	4,070		$	3,843

Above-market ground lease liability to be deducted from hotel expenses	$	(337	)	$	(449	)	$	(449	)	$	(449	)	$	(449	)

Real Estate Sales

As part of the Company's plan to sell non-core assets, during the three months ended March 31, 2016, the Company sold its properties located at 163-30 Cross Bay Boulevard in Queens, New York ("Duane Reade"), 1623 Kings Highway in Brooklyn, New York ("1623 Kings Highway") and 2061-2063 86th Street in Brooklyn, New York ("Foot Locker"). The following table summarizes the properties sold during the three months ended March 31, 2016. The Company did not sell any properties during the three months ended March 31, 2015.



Property	Borough	Disposition Date	Contract Sales Price		Gain on Sale⁽¹⁾⁽²⁾
			(in thousands)		(in thousands)
Duane Reade⁽³⁾	Queens	February 2, 2016	$	12,600	$	126
1623 Kings Highway	Brooklyn	February 17, 2016	17,000		4,293
Foot Locker	Brooklyn	March 30, 2016	8,400		2,086
			$	38,000	$	6,505

______________________


(1)	Reflected within gain on sale of real estate investments, net in the consolidated statements of operations and comprehensive loss.


(2)	During the three months ended March 31, 2016, the Company repaid three mortgage notes payable totaling $18.9 million as a result of the sales of Duane Reade, 1623 Kings Highway and Foot Locker.


(3)	Impairment charge of $0.9 million was recognized during the year ended December 31, 2015 in connection with the classification of Duane Reade as held for sale.

The disposal of Duane Reade, 1623 Kings Highway and Foot Locker did not represent a strategic shift that has a major effect on the Company’s operations and financial results. Accordingly, the results of operations of Duane Reade, 1623 Kings Highway and Foot Locker remain classified within continuing operations for all periods presented until the respective dates of disposal of Duane Reade, 1623 Kings Highway and Foot Locker.