RENTAL INCOME - 10Q

9 Months Ended

Sep. 30, 2014

NOTE 10. RENTAL INCOME

During the nine months ended September 30, 2014, 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 September 30, 2014 as follows:

	Commercial Property Leases
2015	$	2,754,000
2016	2,299,000
2017	1,532,000
2018	1,188,000
2019	794,000
Thereafter	837,000
	$	9,404,000

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 $532,000 and $489,000 for the nine months ended September 30, 2014 and 2013 respectively. Staples and Trader Joes, tenants at Staples Plaza, are approximately 29% 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 September 30,
2015	$	386,561	20,703	11	13	%
2016	685,229		24,656	7	23	%
2017	576,040		20,023	9	20	%
2018	340,173		10,377	6	11	%
2019	632,886		22,657	7	21	%
2020	141,831		3,056	2	5	%
2021	64,800		1,800	1	2	%
2022	0		0	0	0	%
2023	0		0	0	0	%
2024	157,443		4,771	1	5	%
Totals	$	2,984,963	108,043	44	100	%

Rents receivable are net of an allowance for doubtful accounts of approximately $570,000 and $344,000 at September 30, 2014 and December 31, 2013. Included in rents receivable at September 30, 2014 is approximately $183,000 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 September 30, 2014 also includes approximately $68,000 representing the deferral of rental concession primarily related to the residential properties.

For the nine months ended September 30, 2014, 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.

- Definition

The entire disclosure for operating leases of a lessor. This may include a general description of lessor's leasing arrangements for operating leases, including the basis on which contingent rental payments are determined, the existence and terms of renewal or purchase options and escalation clauses, restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions.

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