Operating Leases

12 Months Ended

Dec. 31, 2016

Leases [Abstract]

Operating Leases

Operating Leases:

As of December 31, 2016, the Company leased 24 properties under long-term, triple-net leases to third-parties. The following is a schedule of future minimum lease payments to be received under the non-cancellable operating leases with third-parties at December 31, 2016 (in thousands):

2017	$	96,305
2018	97,129
2019	97,496
2020	97,829
2021	98,344
Thereafter	686,430
Total	$	1,173,533

Under a triple-net lease, the tenant is responsible for paying percentage rent and capital improvement reserve rent. Capital improvement reserves are generally based on a percentage of gross revenue of the property and are set aside by the Company for capital improvements including replacements, from time to time, of furniture, fixtures and equipment and totaled approximately $23.9 million, $21.9 million and $23.9 million for the years ended December 31, 2016, 2015 and 2014, respectively. Percentage rent is generally based on a percentage of gross revenue after it exceeds a certain threshold. Total percentage rent recorded was approximately $5.5 million, $3.3 million and $2.9 million the years ended December 31, 2016, 2015 and 2014, respectively. In addition, substantially all of the property expenses are required to be paid directly by the tenants, including real estate taxes which the tenants pay directly to the taxing authorities. The total annualized property taxes assessed on these properties and paid directly by tenants, were approximately $5.4 million, $6.4 million and $8.6 million for the years ended December 31, 2016, 2015 and 2014, respectively.