Real Estate

9 Months Ended

Sep. 30, 2019

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



	Carrying Value
	September 30,		December 31,
(In thousands)	2019		2018
Properties in operation	$	1,310,281	$	1,279,584
Properties under development	792,110		677,508
Total	$	2,102,391	$	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 $53,527,000 and $46,250,000 as of September 30, 2019 and December 31, 2018, respectively. Related depreciation expense was $8,871,000 and $15,175,000 for the nine months ended September 30, 2019 and 2018, respectively. Future minimum rental income expected on operating leases relating to properties in operation is $19,992,859 in 2019, $71,328,260 in 2020, $73,423,409 in 2021, $73,077,521 in 2022, $66,630,376 in 2023, $64,408,124 in 2024 and $671,711,807 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 2019 and 2018.