16.

Leases

The following table shows the composition of the Company’s lease revenue:

	Years Ended December 31,
(In thousands)	2016		2015		2014
Base rent (straight-line)	$	145,030	$	125,669	$	106,746
Percentage rent		27,069		25,534		27,669
Total lease revenue	$	172,099	$	151,203	$	134,415

SDTS has entered into various leases with Sharyland for all the Company’s placed in service T&D assets. The master lease agreements, as amended, expire at various dates from December 31, 2017 through December 31, 2022. Each agreement includes annual base rent while all but one agreement includes additional percentage rent (based on an agreed upon percentage of the gross revenue of Sharyland, as defined in the lease agreements, in excess of annual specified breakpoints). The rate used for percentage rent for the reported time periods varies by lease and ranges from a high of 37% to a low of 23%. The percentage rent rate for 2017 through the expiration of the leases ranges from a 23% to 31%. Because an annual specified breakpoint must be met under the leases before the Company can recognize any percentage rent, the Company anticipates that revenue will grow over the year with little to no percentage rent recognized in the first and second quarters of each year and with the largest amounts recognized during the third and fourth quarters of each year.

Future minimum rent revenue expected in accordance with these lease agreements is as follows for the years ending December 31:

(In thousands)	Total
2017	$	163,057
2018		86,094
2019		84,163
2020		70,552
2021		8,528
Thereafter		4,413
Total	$	416,807

For information related to the Company’s proposed new leases, which, if approved by the PUCT will replace the Company’s five existing leases, see Note 10, Regulatory Matters.