RENTAL INCOME - 10Q

3 Months Ended

Mar. 31, 2015

RENTAL INCOME

RENTAL INCOME

NOTE 10. RENTAL INCOME

During the three months ended March 31, 2015, approximately 92% of rental income was related to residential apartments and condominium units with leases of one year or less. The majority of these leases expire in June, July and August. Approximately 8% was related to commercial properties, which have minimum future annual rental income on non-cancellable operating leases at March 31, 2015 as follows:

	Commercial Property Leases
2016	$	2,624,000
2017	2,038,000
2018	1,406,000
2019	1,098,000
2020	560,000
Thereafter	675,000
	$	8,401,000

The aggregate minimum future rental income does not include contingent rentals that may be received under various leases in connection with common area charges and real estate taxes. Aggregate contingent rentals from continuing operations were approximately $182,000 and $153,000 for the three months ended March 31, 2015 and 2014 respectively. Staples and Trader Joes, tenants at Staples Plaza, are approximately 26% of the total commercial rental income.

The following information is provided for commercial leases:

					Percentage of
	Annual base rent		Total square feet	Total number	annual base rent for
	for expiring leases		for expiring leases	of leases expiring	expiring leases
Through March 31,
2016	$	459,536	21,584	11	16	%
2017	1,016,457		38,594	9	34	%
2018	169,747		5,981	5	6	%
2019	424,000		12,690	8	14	%
2020	622,466		21,517	8	21	%
2021	64,657		1,106	1	2	%
2022	64,800		1,800	1	2	%
2023	0		0	0	0	%
2024	157,443		4,771	1	5	%
2025	0		0	0	0	%
Totals	$	2,979,106	108,043	44	100	%

Rents receivable are net of an allowance for doubtful accounts of approximately $391,000 and $366,000 at March 31, 2015 and December 31, 2014. Included in rents receivable at March 31, 2015 is approximately $150,000 resulting from recognizing rental income from non-cancelable commercial leases with future rental increases on a straight-line basis. The majority of this amount is for long-term leases with Staples and Trader Joe’s at Staples Plaza in Framingham, Massachusetts.

Rents receivable at March 31, 2015 also includes approximately $98,000 representing the deferral of rental concession primarily related to the residential properties.

For the three months ended March 31, 2015, rent at the commercial properties includes approximately $550 of amortization of deferred rents arising from the fair values assigned to in-place leases upon the purchase of Cypress Street in Brookline, Massachusetts.