XML 63 R52.htm IDEA: XBRL DOCUMENT v3.20.2
Operating Leases (Details)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
USD ($)
Sep. 30, 2019
USD ($)
Sep. 30, 2020
USD ($)
Sep. 30, 2019
USD ($)
Operating Leases [Abstract]        
Lessee, Operating Lease, Disclosure     Operating Leases
The Company’s real estate investments are leased under operating leases. As described in Note 2, the Company adopted Topic 842 on January 1, 2019 and elected to not reassess its prior conclusions about lease classification. Accordingly, these lease arrangements continue to be classified as operating leases. In addition to its lessor arrangements on its real estate investments, as of September 30, 2020 and December 31, 2019, the Company was lessee in 57 operating ground leases, as well as lessee in an operating lease of its executive office. The Company's tenants, who are generally sub-tenants under these ground leases, are responsible for paying the rent under these ground leases. In the event the tenant fails to pay the ground lease rent, the Company would be primarily responsible for the payment, assuming the Company does not sell or re-tenant the property.

The following table summarizes rental revenue, including sublease arrangements, and lease costs, including impairment charges on operating lease right-of-use assets, for the three and nine months ended September 30, 2020 and 2019 (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
Classification2020201920202019
Rental revenue
Operating leases (1)Rental revenue$54,785 $145,031 $283,891 $420,768 
Sublease income - operating ground leases (2)Rental revenue$806 $5,931 $4,274 $17,489 
Lease costs
Operating ground lease costProperty operating expense$6,015 $6,407 $18,515 $18,410 
Operating office lease costGeneral and administrative expense$226 $226 $678 $682 
Operating lease right-of-use asset impairment charges (3)Impairment charges$— $— $15,009 $— 

(1) During the three and nine months ended September 30, 2020, the Company wrote-off straight-line rent receivables totaling $20.4 million and $25.4 million, respectively, to straight-line rental revenue classified in rental revenue in the accompanying consolidated statements of (loss) income and comprehensive (loss) income. Additionally, during the three and nine months ended September 30, 2020, the Company wrote-off lease receivables from tenants totaling $22.8 million and $23.0 million, respectively, to minimum rent and percentage rent classified in rental revenue in the accompanying consolidated statements of (loss) income and comprehensive (loss) income related to tenants being recognized on a cash basis.
(2) During the three and nine months ended September 30, 2020, the Company wrote-off sub-lessor ground lease straight-line rent receivables totaling $3.5 million and $11.5 million, respectively, to straight-line rental revenue
classified in rental revenue in the accompanying consolidated statements of (loss) income and comprehensive (loss) income. Additionally, during both the three and nine months ended September 30, 2020, the Company wrote-off sub-lessor ground lease receivables from tenants totaling $1.4 million to minimum rent classified in rental revenue in the accompanying consolidated statements of (loss) income and comprehensive (loss) income related to tenants being recognized on a cash basis. (3) During the nine months ended September 30, 2020, the Company recognized impairment charges of $15.0 million related to the operating lease right-of-use assets at two of its properties. See Note 4 for the details on these impairments. 		 
Lease, Cost    
The following table summarizes rental revenue, including sublease arrangements, and lease costs, including impairment charges on operating lease right-of-use assets, for the three and nine months ended September 30, 2020 and 2019 (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
Classification2020201920202019
Rental revenue
Operating leases (1)Rental revenue$54,785 $145,031 $283,891 $420,768 
Sublease income - operating ground leases (2)Rental revenue$806 $5,931 $4,274 $17,489 
Lease costs
Operating ground lease costProperty operating expense$6,015 $6,407 $18,515 $18,410 
Operating office lease costGeneral and administrative expense$226 $226 $678 $682 
Operating lease right-of-use asset impairment charges (3)Impairment charges$— $— $15,009 $— 
  
Property Subject to or Available for Operating Lease [Line Items]        
Straight line rent write off     $ 36,900 $ 10,000
Operating Lease, Lease Income $ 54,785 [1] $ 145,031 283,891 [1] 420,768
Property operating expense 13,759 14,494 42,181 44,642
General and Administrative Expense $ 10,034 11,600 $ 31,454 35,540
Number of Properties Subject to Ground Leases 57   57  
Asset Impairment Charges $ 11,561 0 $ 62,825 0
Allowance for Loan and Lease Losses, Write-offs     62,600  
Ground Lease Arrangement [Member]        
Property Subject to or Available for Operating Lease [Line Items]        
Operating Lease, Lease Income 806 [2] 5,931 4,274 [2] 17,489
Property operating expense 6,015 6,407 18,515 18,410
Office Lease [Member]        
Property Subject to or Available for Operating Lease [Line Items]        
General and Administrative Expense 226 226 678 682
Experiential Reportable Operating Segment [Member]        
Property Subject to or Available for Operating Lease [Line Items]        
Property operating expense 13,011 13,338 39,854 41,274
Right-of-Use Assets, Operating Lease [Member] | Experiential Reportable Operating Segment [Member]        
Property Subject to or Available for Operating Lease [Line Items]        
Asset Impairment Charges $ 0 [3] $ 0 $ 15,009 [3] $ 0
Number of impaired properties 2   2  
straight-line receivable [Member]        
Property Subject to or Available for Operating Lease [Line Items]        
Straight line rent write off $ 20,400   $ 25,400  
Ground Lease Straight Line Receivable [Member]        
Property Subject to or Available for Operating Lease [Line Items]        
Straight line rent write off 3,500   11,500  
Ground Lease Receivable [Member]        
Property Subject to or Available for Operating Lease [Line Items]        
Allowance for Loan and Lease Losses, Write-offs 1,400      
Tenant Receivable [Member]        
Property Subject to or Available for Operating Lease [Line Items]        
Allowance for Loan and Lease Losses, Write-offs $ 22,800   $ 23,000  
[1] (1) During the three and nine months ended September 30, 2020, the Company wrote-off straight-line rent receivables totaling $20.4 million and $25.4 million, respectively, to straight-line rental revenue classified in rental revenue in the accompanying consolidated statements of (loss) income and comprehensive (loss) income. Additionally, during the three and nine months ended September 30, 2020, the Company wrote-off lease receivables from tenants totaling $22.8 million and $23.0 million, respectively, to minimum rent and percentage rent classified in rental revenue in the accompanying consolidated statements of (loss) income and comprehensive (loss) income related to tenants being recognized on a cash basis.
[2] (2) During the three and nine months ended September 30, 2020, the Company wrote-off sub-lessor ground lease straight-line rent receivables totaling $3.5 million and $11.5 million, respectively, to straight-line rental revenue classified in rental revenue in the accompanying consolidated statements of (loss) income and comprehensive (loss) income. Additionally, during both the three and nine months ended September 30, 2020, the Company wrote-off sub-lessor ground lease receivables from tenants totaling $1.4 million to minimum rent classified in rental revenue in the accompanying consolidated statements of (loss) income and comprehensive (loss) income related to tenants being recognized on a cash basis.
[3] (3) During the nine months ended September 30, 2020, the Company recognized impairment charges of $15.0 million related to the operating lease right-of-use assets at two of its properties. See Note 4 for the details on these impairments.