Real Estate Properties

9 Months Ended

Sep. 30, 2019

Real Estate PropertiesDuring the nine months ended September 30, 2019 and 2018, we made improvements, excluding tenant-funded improvements, to our properties totaling $10.0 million and $43.3 million, respectively.

Property Dispositions:

During the nine months ended September 30, 2019, we sold the following properties, which did not represent strategic shifts under ASC Topic 2015 (dollars in thousands):


Property	Date Sold	Number of Properties	Number of Buildings	Square Footage	Gross Sales Price		Gain on Sale
1735 Market Street(1)	March 2019	1	1	1,286,936	$	451,600	$	192,985
600 108^th Avenue NE(2)	April 2019	1	1	254,510	195,000		149,009
Research Park(3)	June 2019	1	4	1,110,007	165,500		78,158


		3	6	2,651,453	$	812,100	$	420,152

(1)Certain of our subsidiaries sold 100% of the equity interests in the fee simple owner of this property. The sale represents an individually significant disposition. The operating results of this property are included in continuing operations for all periods presented through the date of sale. Net income related to this property was $0.1 million and $2.1 million for the three months ended September 30, 2019 and 2018, respectively, and $197.3 million (of which $193.0 million related to the gain on sale) and $5.9 million for the nine months ended September 30, 2019 and 2018, respectively.

(2)The property includes an office building and additional development rights.

(3)There is consideration of $2.0 million being held in escrow related to the sale of this property. To the extent any of these proceeds are ultimately released to the Company, the gain on sale will increase.

Lease Payments

The future minimum lease payments, excluding tenant reimbursement revenue, scheduled to be received by us during the current terms of our leases as of September 30, 2019 are as follows (in thousands):


2019	$	16,203
2020	60,083
2021	66,562
2022	59,574
2023	54,130
Thereafter	364,353
	$	620,905

Rental revenue consists of the following (in thousands):


	Three Months Ended September 30,						Nine Months Ended September 30,
	2019		2018		2019		2018
Lease payments	$	16,985	$	30,681	$	65,319	$	100,845
Variable lease payments	7,010		13,089		28,140		43,767
Rental revenue	$	23,995	$	43,770	$	93,459	$	144,612