Real Estate

6 Months Ended

Jun. 30, 2019

Investment in real estate represents directly owned property held for investment, as follows:



	Carrying Value
	June 30,		December 31,
(In thousands)	2019		2018
Properties in operation	$	1,310,149	$	1,279,584
Properties under development	757,395		677,508
Total	$	2,067,544	$	1,957,092

In 2019, properties in operation included a long-term ground lease in Washington, D.C., a hotel in Memphis, Tennessee, two office complexes in New York City, office buildings in West Palm Beach and Palm Beach, Florida, and an office building in London. Properties in operation are net of accumulated depreciation and amortization of $55,515,000 and $46,250,000 as of June 30, 2019 and December 31, 2018, respectively. Related depreciation expense was $8,931,000 and $10,784,000 for the six months ended June 30, 2019 and 2018, respectively. Future minimum rental income expected on operating leases relating to properties in operation is $32,963,388 in 2019, $66,249,918 in 2020, $68,157,589 in 2021, $71,308,839 in 2022, $64,897,648 in 2023, $62,673,400 in 2024 and $666,203,503 thereafter.

The Company borrowed $101,750,000 through a non-recourse loan secured by the West Palm Beach office building in 2018. The loan matures in November 2028 and carries a fixed interest rate of 4.21%. The carrying value does not reflect the outstanding financing, but rather is reflected within senior notes and other debt on the Company's consolidated balance sheet.

A mixed-use project in Washington, D.C. has been under development in 2018 and 2019.