Investment in Rental Property and Lease Arrangements (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Rental Property Subject to Non-cancelable Operating Leases

Depreciation expense on investment in rental property was as follows:

	For the Three Months Ended March 31,
(in thousands)	2023		2022
Depreciation	$	31,157	$	26,658

Estimated Lease Payments to be Received under Non-cancelable Operating Leases

Estimated lease payments to be received under non-cancelable operating leases with tenants at March 31, 2023 are as follows:

(in thousands)
Remainder of 2023	$	291,129
2024		389,055
2025		386,026
2026		381,109
2027		363,946
Thereafter		3,044,506
	$	4,855,771

Net Investment in Direct Financing Leases

The Company’s net investment in direct financing leases was comprised of the following:

(in thousands)	March 31, 2023			December 31, 2022
Undiscounted estimated lease payments to be received	$	37,492		$	38,268
Estimated unguaranteed residual values		14,547			14,547
Unearned revenue		(24,967	)		(25,645	)
Reserve for credit losses		(125	)		(125	)
Net investment in direct financing leases	$	26,947		$	27,045

Direct Financing Leases, Lease Receivable Maturity

Undiscounted estimated lease payments to be received under non-cancelable direct financing leases with tenants at March 31, 2023 are as follows:

(in thousands)
Remainder of 2023	$	2,337
2024		3,171
2025		3,285
2026		3,357
2027		3,426
Thereafter		21,916
	$	37,492

Summary of Amounts Reported as Lease Revenues, Net on the Consolidated Statements of Income and Comprehensive Income

The following table summarizes amounts reported as Lease revenues, net on the Condensed Consolidated Statements of Income and Comprehensive Income:

	For the Three Months Ended March 31,
(in thousands)	2023				2022
Contractual rental amounts billed for operating leases	$	98,102			$	84,396
Adjustment to recognize contractual operating lease billings on a    straight-line basis		7,370				5,021
Net write-offs of accrued rental income		(105	)			(1,326	)
Variable rental amounts earned		341				186
Earned income from direct financing leases		691				723
Interest income from sales-type leases		14				14
Operating expenses billed to tenants		5,075				4,735
Other income from real estate transactions		7,392		(a)		42
Adjustment to revenue recognized for uncollectible rental    amounts billed, net		112				50
Total lease revenues, net	$	118,992			$	93,841

(a)Other income from real estate transactions during the three months ended March 31, 2023, includes $7.5 million of lease termination fee income recognized in connection with the simultaneous lease termination and sale of an underlying office property for an additional $32.0 million in proceeds.