Real Estate Properties (Tables)

6 Months Ended

Jun. 30, 2020

Real Estate [Abstract]

Summary of Properties Sold and Income Statement Information for Properties Disposed of

During the six months ended June 30, 2020, we sold the following properties, which did not represent strategic shifts under ASC Topic 205 (dollars in thousands):

Property	Date Sold	Number of Properties	Number of Buildings	Square Footage	Gross Sale Price(1)		Gain on Sale
109 Brookline Avenue	February 2020	1	1	285,556	$	270,000	$	225,190
333 108th Avenue NE(2)	March 2020	1	1	435,406	401,500		194,424
Georgetown-Green and Harris Buildings	May 2020	1	2	240,475	85,000		24,916
		3	4	961,437	$	756,500	$	444,530

(1)Gross sale price is before credits, primarily for contractual lease costs, and transfer taxes.

(2)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 $28,000 and $3.7 million for the three months ended June 30, 2020 and 2019, respectively, and $193.2 million, of which $194.4 million related to the gain on sale, and $7.3 million for the six months ended June 30, 2020 and 2019, respectively.

During the six months ended June 30, 2019, we sold the following properties, which did not represent a strategic shift under ASC Topic 205 (dollars in thousands):

Property	Date Sold	Number of Properties	Number of Buildings	Square Footage	Gross Sale Price(1)		Gain on Sale
1735 Market Street(2)	March 2019	1	1	1,286,936	$	451,600	$	192,985
600 108th Avenue NE(3)	April 2019	1	1	254,510	195,000		149,009
Research Park(4)	June 2019	1	4	1,110,007	165,500		78,158
		3	6	2,651,453	$	812,100	$	420,152

(1)Gross sale price is before credits for capital costs, contractual lease costs and rent abatements.

(2)Certain of our subsidiaries sold 100.0% 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 $197.2 million (of which $193.0 million related to the gain on sale) for the three and six months ended June 30, 2019, respectively.

(3)The property includes an office building and additional developmental rights.

(4)There was consideration of $2.0 million being held in escrow related to the sale of this property in 2019. In June 2020, these proceeds were released to the Company, and we recorded an additional $2.0 million gain on the sale for the three and six months ended June 30, 2020.

Schedule of Rental Revenue

Rental revenue consists of the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Lease payments	$	9,983	$	20,429	$	21,753	$	48,334
Variable lease payments	5,265		10,145		10,638		21,130
Rental revenue	$	15,248	$	30,574	$	32,391	$	69,464