FUTURE MINIMUM RENTAL INCOME

12 Months Ended

Dec. 31, 2015

5. FUTURE MINIMUM RENTAL INCOME

Operating Leases

The Company’s real estate properties are leased to tenants under operating leases for which the terms and expirations vary. As of December 31, 2015, the leases at the Company’s properties have remaining terms (excluding options to extend) of up to 20 years with a weighted-average remaining term (excluding options to extend) of 5 years. The leases may have provisions to extend the lease agreements, options for early termination after paying a specified penalty, rights of first refusal to purchase the property at competitive market rates, and other terms and conditions as negotiated. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. Generally, upon the execution of a lease, the Company requires security deposits from tenants in the form of a cash deposit and/or a letter of credit. Amounts required as security deposits vary depending upon the terms of the respective leases and the creditworthiness of the tenant, but generally are not significant amounts. Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of its security deposit. Security deposits received in cash related to tenant leases are included in other liabilities in the accompanying consolidated balance sheets and totaled $175,000 and $437,000 as of December 31, 2015 and December 31, 2014, respectively.

As of December 31, 2015, the future minimum rental income from the Company’s properties, other than the held for sale properties, under non-cancelable operating leases was as follows:

2016	$	7,043,000
2017		6,154,000
2018		5,070,000
2019		4,461,000
2020		3,680,000
Thereafter		7,365,000
	$	33,773,000