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Related Party Transactions | 6 Months Ended
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Jun. 30, 2020
Related Party Transactions |
Related Party Transactions | Note 9 – Related Party Transactions Compensation and Services Agreement Pursuant to the compensation and services agreement with Majestic Property Management Corp. (“Majestic”), Majestic provides the Company with the services of executive, administrative, legal, accounting, clerical and property management personnel, as well as property acquisition, sale and lease consulting and brokerage services, consulting services with respect to mortgage financings and construction supervisory services (collectively, the “Services”). Majestic is wholly-owned by the Company’s vice-chairman and certain of the Company’s executive officers are officers of, and are compensated by, Majestic. The amount the Company pays Majestic for the Services is approved each year by the Company’s Compensation and/or Audit Committees and the independent directors. In consideration for the Services, the Company paid Majestic $714,000 and $1,481,000 for the three and six months ended June 30, 2020, respectively, and $702,000 and $1,405,000 for the three and six months ended June 30, 2019, respectively. Included in these fees are $278,000 and $608,000 of property management costs for the three and six months ended June 30, 2020, respectively, and $322,000 and $646,000 for the three and six months ended June 30, 2019, respectively. The amounts paid for property management services is based on 1.5% and 2.0% of the rental payments (including tenant reimbursements) actually received by the Company from net lease tenants and operating lease tenants, respectively. The Company does not pay Majestic with respect to properties managed by third parties. The Company also paid Majestic, pursuant to the compensation and services agreement, $69,000 and $138,000 in the three and six months ended June 30, 2020, respectively, and $54,000 and $108,000 in the three and six months ended June 30, 2019, respectively, for the Company’s share of all direct office expenses, including rent, telephone, postage, computer services, internet usage and supplies. The Company does not pay Majestic for any services except as described in this and the immediately preceding paragraph. Executive officers and others providing services to the Company under the compensation and services agreement were awarded shares of restricted stock and restricted stock units (“RSUs”) under the Company’s stock incentive plans (described in Note 14). The related expense charged to the Company’s operations was $453,000 and $903,000 for the three and six months ended June 30, 2020, respectively, and $462,000 and $932,000 for the three and six months ended June 30, 2019, respectively. The amounts paid under the compensation and services agreement (except for the property management costs which are included in Real estate expenses) and the costs of the stock incentive plans are included in General and administrative expense on the consolidated statements of income. Note 9 – Related Party Transactions (Continued) Joint Venture Partners and Affiliates The Company paid an aggregate of $16,000 and $36,000 for the three and six months ended June 30, 2020, respectively, and $20,000 and $41,000 for the three and six months ended June 30,2019, respectively, to its consolidated joint venture partners or their affiliates (none of whom are officers, directors or employees of the Company) for property management services, which are included in Real estate expenses on the consolidated statements of income. The Company’s unconsolidated joint ventures paid management fees of $18,000 and $40,000 for the three and six months ended June 30, 2020, respectively, and $30,000 and $55,000 for the three and six months ended June 30, 2019, respectively, to the other partner of the venture, which reduced Equity in earnings on the consolidated statements of income by $9,000 and $20,000 for the three and six months ended June 30, 2020, respectively, and $15,000 and $28,000 for the three and six months ended June 30, 2019, respectively. Additionally, during the three and six months ended June 30, 2020, an unconsolidated joint venture of the Company paid a leasing commission and development fee totaling $75,000 to the other partner of the venture, which was included in Investment in unconsolidated joint ventures on the consolidated balance sheet as of June 30, 2020. Other During 2020 and 2019, the Company paid quarterly fees of $74,500 and $72,400, respectively, to the Company’s chairman, and $29,800 and $28,900, respectively, to the Company’s vice-chairman. These fees are included in General and administrative expenses on the consolidated statements of income. The Company obtains its property insurance in conjunction with Gould Investors L.P. (“Gould Investors”), a related party, and reimburses Gould Investors annually for the Company’s insurance cost relating to its properties. Included in Real estate expenses on the consolidated statements of income is insurance expense of $245,000 and $490,000 for the three and six months ended June 30, 2020, respectively, and $222,000 and $447,000 for the three and six months ended June 30, 2019, respectively, of amounts reimbursed to Gould Investors in prior periods.

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -URI http://asc.fasb.org/topic&trid=2122745 + Details
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