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RENTAL INCOME
9 Months Ended
Sep. 30, 2016
RENTAL INCOME  
RENTAL INCOME

NOTE 10. RENTAL INCOME

 

During the nine months ended September 30, 2016, approximately 93% 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 7% was related to commercial properties, which have minimum future annual rental income on non-cancellable operating leases at September 30, 2016 as follows:

 

 

 

 

 

 

 

    

Commercial

 

 

 

Property Leases

 

2017

 

$

2,434,000

 

2018

 

 

2,066,000

 

2019

 

 

1,634,000

 

2020

 

 

1,065,000

 

2021

 

 

763,000

 

Thereafter

 

 

356,000

 

 

 

$

8,318,000

 

 

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 $444,000 and $521,000 for the nine months ended September 30, 2016 and 2015 respectively. Staples and Trader Joes, tenants at Staples Plaza, are approximately 22% of the total commercial rental income.

 

The following information is provided for commercial leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Annual base

    

 

    

 

    

Percentage of

 

 

 

rent for

 

Total square feet

 

Total number of

 

annual base rent for

 

Through September 30,

 

expiring leases

 

for expiring leases

 

leases expiring

 

expiring leases

 

2017

 

$

577,694

 

25,179

 

11

 

20

%

2018

 

 

367,293

 

11,507

 

7

 

13

%

2019

 

 

707,687

 

25,029

 

13

 

24

%

2020

 

 

215,165

 

6,409

 

5

 

8

%

2021

 

 

784,588

 

34,248

 

6

 

28

%

2022

 

 

30,600

 

900

 

1

 

1

%

2023

 

 

 —

 

 —

 

 —

 

0

%

2024

 

 

157,443

 

4,771

 

1

 

6

%

2025

 

 

 —

 

 —

 

 —

 

0

%

2026

 

 

 —

 

 —

 

 —

 

0

%

Totals

 

$

2,840,470

 

108,043

 

44

 

100

%

 

Rents receivable are net of an allowance for doubtful accounts of approximately $666,000 and $373,000 at September 30, 2016 and December 31, 2015. Included in rents receivable at September 30, 2016 is approximately $115,000 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 at 62 Boylston Street in Boston, Massachusetts.

 

Rents receivable at September 30, 2016 also includes approximately $111,000 representing the deferral of rental concession primarily related to the residential properties.

 

For the nine months ended September 30, 2016 rent at the commercial properties includes approximately $2,000 of amortization of deferred rents arising from the fair values assigned to in-place leases upon the purchase of Cypress Street in Brookline, Massachusetts.