REAL ESTATE PROPERTIES (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018

Ground lease payments [Line Items]

Ground lease payments [Table Text Block]

The following schedule indicates approximate future minimum ground lease payments for these properties by year as of September 30, 2019:

Future Minimum Ground Lease Payments

Years Ending December 31,	(In thousands)
2019 - Remainder of year	$	242
2020	970
2021	970
2022	970
2023	975
Thereafter	39,914
Total minimum payments	44,041
Imputed interest (1)	(31,538		)
Amortization	(228		)
Total ground leases	$	12,275

(1)

As the Company’s leases do not provide an implicit rate, in order to calculate the present value of the remaining ground lease payments, the Company used its incremental borrowing rate, adjusted for a number of factors, including the long-term nature of the ground leases, the Company’s estimated borrowing costs, and the estimated fair value of the underlying land, to determine the imputed interest for its ground leases. The Company elected to use the portfolio approach as all of its ground leases in place as of January 1, 2019, have similar characteristics and determined 7.3% as the appropriate rate as of January 1, 2019, for all leases in place at that time. For the ground lease acquired during April 2019, the Company used its incremental borrowing rate, adjusted for the factors discussed above, which was determined to be 8.0%.

Since the Company has applied the provisions on a prospective basis, the following represents approximate future minimum ground lease payments by year as of December 31, 2018, as applicable under ASC 840, Leases, prior to the adoption of ASC 842.

Future Minimum Ground Lease Payments

Years Ending December 31,	(In thousands)
2019	$	791
2020	791
2021	791
2022	791
2023	791
Thereafter	30,751
	$	34,706

Schedule of Real Estate Properties

The Company’s Real estate properties and Development and value-add properties at September 30, 2019 and December 31, 2018 were as follows:

	September 30, 2019			December 31, 2018
	(In thousands)
Real estate properties:
Land	$	418,346		380,684
Buildings and building improvements	1,847,038			1,732,592
Tenant and other improvements	462,031			440,205
Right of use assets — Ground leases (operating) (1)	12,242			—
Development and value-add properties (2)	354,238			263,664
	3,093,895			2,817,145
Less accumulated depreciation	(854,368		)	(814,915	)
	$	2,239,527		2,002,230

(1) See below and in Note 20 for information regarding the Company’s right of use assets for ground leases.

(2)

Value-add properties are defined as properties that are either acquired but not stabilized or can be converted to a higher and better use.  Acquired properties meeting either of the following two conditions are considered value-add properties:  (1) Less than 75% occupied as of the acquisition date (or will be less than 75% occupied within one year of acquisition date based on near term lease roll), or (2) 20% or greater of the acquisition cost will be spent to redevelop the property.