Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

Leases

Rental income from operating leases, including payments derived by index or market-based indices, is recognized on a straight line basis over the lease term when we have determined that the collectability of substantially all of the lease payments is probable. We increased rental income by $15,368, $16,079 and $27,507 to record revenue on a straight line basis during the years ended December 31, 2021, 2020 and 2019, respectively. Rents receivable, excluding properties classified as held for sale, include $82,978 and $68,824 of straight line rent receivables at December 31, 2021 and 2020, respectively.

We do not include in our measurement of our lease receivables certain variable payments, including payments determined by changes in the index or market-based indices after the inception of the lease, certain tenant reimbursements and other income until the specific events that trigger the variable payments have occurred. Such payments totaled $85,107, $75,851 and $91,076 for the years ended December 31, 2021, 2020 and 2019, respectively, of which tenant reimbursements totaled $81,295, $71,385 and $86,353, respectively.

The following operating lease maturity analysis presents the future contractual lease payments to be received by us through 2053 as of December 31, 2021:

Year	Amount
2022	$	456,350
2023	422,139
2024	360,282
2025	296,945
2026	253,313
Thereafter	1,267,710
Total	$	3,056,739

In certain circumstances, some leases provide the tenant with the right to terminate if the legislature or other funding authority does not appropriate the funding necessary for the tenant to meet its lease obligations; we have determined the fixed non-cancelable lease term of these leases to be the full term of the lease because we believe the occurrence of early terminations to be a remote contingency based on both our historical experience and our assessments of the likelihood of lease cancellation on a separate lease basis. As of December 31, 2021, tenants who currently represent approximately 2.8% of our total operating lease maturities have currently exercisable rights to terminate their leases before the stated terms of their leases expire. In 2022, 2023, 2024, 2025, 2026, 2027, 2028, 2029, 2030, 2035 and 2040, early termination rights become exercisable by other tenants who currently represent an additional approximately 1.5%, 8.8%, 3.0%, 6.2%, 2.4%, 1.7%, 2.5%, 1.7%, 1.6%, 1.7% and 1.1% of our total operating lease maturities, respectively. In addition, as of December 31, 2021, 14 of our tenants have the right to terminate their leases if the respective legislature or other funding authority does not appropriate the funding necessary for the

tenant to meet its obligation. These 14 tenants represent approximately 6.2% of our total operating lease maturities as of December 31, 2021.

As a result of the COVID-19 pandemic, we granted temporary rent assistance totaling $2,483 to 18 tenants. This assistance generally entailed a deferral of, in most cases, one month of rent pursuant to deferred payment plans which required the deferred rent amounts be payable over a 12-month period. We elected to use the FASB relief package that provides entities with the option to account for lease concessions resulting from the COVID-19 pandemic outside of the existing lease modification guidance if the resulting cash flows from the modified lease are substantially the same as or less than the original lease. Because the deferred rent amounts were to be repaid, the cash flows from the respective leases are substantially the same as before the rent deferrals. The deferred amounts did not impact our operating results for the years ended December 31, 2021 and 2020. As of December 31, 2021, we had collected 100% of the granted rent deferrals.

Right of use asset and lease liability. For leases where we are the lessee, we are required to record a right of use asset and lease liability for all leases with an initial term greater than 12 months. As of December 31, 2020, we had one lease that met these criteria, which expired on January 31, 2021. We subleased a portion of the space, which sublease also expired on January 31, 2021. The value of the right of use asset and related liability representing our future obligation under the lease arrangement as of December 31, 2020 were $168 and $174, respectively, and are included in other assets, net and accounts payable and other liabilities, respectively, in our consolidated balance sheets. Rent expense incurred under the lease, net of sublease revenue, was $79, $1,749 and $1,670 for the years ended December 31, 2021, 2020 and 2019, respectively.

Leases

Leases

Rental income from operating leases, including payments derived by index or market-based indices, is recognized on a straight line basis over the lease term when we have determined that the collectability of substantially all of the lease payments is probable. We increased rental income by $15,368, $16,079 and $27,507 to record revenue on a straight line basis during the years ended December 31, 2021, 2020 and 2019, respectively. Rents receivable, excluding properties classified as held for sale, include $82,978 and $68,824 of straight line rent receivables at December 31, 2021 and 2020, respectively.

We do not include in our measurement of our lease receivables certain variable payments, including payments determined by changes in the index or market-based indices after the inception of the lease, certain tenant reimbursements and other income until the specific events that trigger the variable payments have occurred. Such payments totaled $85,107, $75,851 and $91,076 for the years ended December 31, 2021, 2020 and 2019, respectively, of which tenant reimbursements totaled $81,295, $71,385 and $86,353, respectively.

The following operating lease maturity analysis presents the future contractual lease payments to be received by us through 2053 as of December 31, 2021:

Year	Amount
2022	$	456,350
2023	422,139
2024	360,282
2025	296,945
2026	253,313
Thereafter	1,267,710
Total	$	3,056,739

In certain circumstances, some leases provide the tenant with the right to terminate if the legislature or other funding authority does not appropriate the funding necessary for the tenant to meet its lease obligations; we have determined the fixed non-cancelable lease term of these leases to be the full term of the lease because we believe the occurrence of early terminations to be a remote contingency based on both our historical experience and our assessments of the likelihood of lease cancellation on a separate lease basis. As of December 31, 2021, tenants who currently represent approximately 2.8% of our total operating lease maturities have currently exercisable rights to terminate their leases before the stated terms of their leases expire. In 2022, 2023, 2024, 2025, 2026, 2027, 2028, 2029, 2030, 2035 and 2040, early termination rights become exercisable by other tenants who currently represent an additional approximately 1.5%, 8.8%, 3.0%, 6.2%, 2.4%, 1.7%, 2.5%, 1.7%, 1.6%, 1.7% and 1.1% of our total operating lease maturities, respectively. In addition, as of December 31, 2021, 14 of our tenants have the right to terminate their leases if the respective legislature or other funding authority does not appropriate the funding necessary for the

tenant to meet its obligation. These 14 tenants represent approximately 6.2% of our total operating lease maturities as of December 31, 2021.

As a result of the COVID-19 pandemic, we granted temporary rent assistance totaling $2,483 to 18 tenants. This assistance generally entailed a deferral of, in most cases, one month of rent pursuant to deferred payment plans which required the deferred rent amounts be payable over a 12-month period. We elected to use the FASB relief package that provides entities with the option to account for lease concessions resulting from the COVID-19 pandemic outside of the existing lease modification guidance if the resulting cash flows from the modified lease are substantially the same as or less than the original lease. Because the deferred rent amounts were to be repaid, the cash flows from the respective leases are substantially the same as before the rent deferrals. The deferred amounts did not impact our operating results for the years ended December 31, 2021 and 2020. As of December 31, 2021, we had collected 100% of the granted rent deferrals.

Right of use asset and lease liability. For leases where we are the lessee, we are required to record a right of use asset and lease liability for all leases with an initial term greater than 12 months. As of December 31, 2020, we had one lease that met these criteria, which expired on January 31, 2021. We subleased a portion of the space, which sublease also expired on January 31, 2021. The value of the right of use asset and related liability representing our future obligation under the lease arrangement as of December 31, 2020 were $168 and $174, respectively, and are included in other assets, net and accounts payable and other liabilities, respectively, in our consolidated balance sheets. Rent expense incurred under the lease, net of sublease revenue, was $79, $1,749 and $1,670 for the years ended December 31, 2021, 2020 and 2019, respectively.