REAL ESTATE PROPERTIES (Tables)

3 Months Ended

Mar. 31, 2021

Ground lease payments [Table Text Block]

The following schedule indicates approximate future minimum ground lease payments for these properties by year as of March 31, 2021:

Future Minimum Ground Lease Payments


Years Ending December 31,	(In thousands)
2021 - Remainder of year	$	727
2022	970
2023	975
2024	999
2025	999
Thereafter	37,917
Total minimum payments	42,587
Imputed interest (1)	(31,587)
Total ground lease liabilities	$	11,000

(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 a rate of 8.0%, which was its incremental borrowing rate, adjusted for the factors discussed above.

Schedule of Real Estate Properties

The Company’s Real estate properties and Development and value-add properties at March 31, 2021 and December 31, 2020 were as follows:


	March 31, 2021		December 31, 2020
	(In thousands)
Real estate properties:
Land	$	510,838	502,739
Buildings and building improvements	2,171,682		2,120,731
Tenant and other improvements	537,042		524,954
Right of use assets — Ground leases (operating) (1)	10,856		11,073
Development and value-add properties (2)	346,245		359,588
	3,576,663		3,519,085
Less accumulated depreciation	(979,709)		(955,328)
	$	2,596,954	2,563,757

(1)See below 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.