Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Lease Income

The components of rental revenue from the Company’s operating and direct financing leases were as follows (in thousands):

	Year Ended December 31,
	2019			2018			2017
Fixed:
Cash rent	$	1,102,538		$	1,121,482		$	1,110,983
Straight-line rent	28,032			39,772			46,968
Lease intangible amortization	(2,538		)	(4,178		)	(5,366		)
Property operating cost reimbursements	5,559			5,375			3,056
Sub-lease (1)	21,496			16,178			16,383
Total fixed	1,155,087			1,178,629			1,172,024
Variable (2)	81,310			78,179			78,699
Income from direct financing leases	837			1,059			1,562
Total rental revenue	$	1,237,234		$	1,257,867		$	1,252,285

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(1) The Company’s tenants are generally sub-tenants under certain ground leases and are responsible for paying the rent under these leases.

(2)

Includes costs reimbursed related to property operating expenses, common area maintenance and percentage rent, including these costs reimbursed by ground lease sub-tenants.

Lessor, Operating Lease Payments Receivable

The following table presents future minimum operating lease payments due to the Company over the next five years and thereafter as of December 31, 2019 (in thousands). These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes.

	Future Minimum Operating Lease Payments		Future Minimum Direct Financing Lease Payments (1)
2020	$	1,066,215	$	2,215
2021	1,035,373		2,095
2022	966,765		2,006
2023	889,768		1,646
2024	811,274		590
Thereafter	4,675,575		824
Total	$	9,444,970	$	9,376

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(1)

Related to 22 properties which are subject to direct financing leases and, therefore, revenue is recognized as rental income on the discounted cash flows of the lease payments. Amounts reflect undiscounted cash flows to be received by the Company under the lease agreements on these respective properties.

Lessor, Direct Financing Leases Maturities

The following table presents future minimum operating lease payments due to the Company over the next five years and thereafter as of December 31, 2019 (in thousands). These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes.

	Future Minimum Operating Lease Payments		Future Minimum Direct Financing Lease Payments (1)
2020	$	1,066,215	$	2,215
2021	1,035,373		2,095
2022	966,765		2,006
2023	889,768		1,646
2024	811,274		590
Thereafter	4,675,575		824
Total	$	9,444,970	$	9,376

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(1)

Related to 22 properties which are subject to direct financing leases and, therefore, revenue is recognized as rental income on the discounted cash flows of the lease payments. Amounts reflect undiscounted cash flows to be received by the Company under the lease agreements on these respective properties.

Lease Cost

The following table presents the lease expense components for the year ended December 31, 2019 (in thousands):

	Year Ended December 31, 2019
Operating lease cost (1)	$	24,392
Sublease income (2)	$	(21,496	)

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(1) No cash paid for operating lease liabilities was capitalized.

(2)

The Company’s tenants are generally sub-tenants under certain ground leases and are responsible for paying the rent under these leases.

Lessee, Operating Lease Maturities

The following table reflects the future minimum lease payments due from the Company over the next five years and thereafter for ground lease obligations, which are substantially reimbursable by our tenants, and office lease obligations as of December 31, 2019 (in thousands).

	Future Minimum Lease Payments
2020	$	22,287
2021	22,284
2022	22,122
2023	21,695
2024	21,132
Thereafter	225,457
Total	334,977
Less: imputed interest	113,916
Total	$	221,061

Lessee, Future Minimum Rental Payments

The following table reflects the future minimum lease payments due from the Company over the five years subsequent to December 31, 2018, as disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 (in thousands), which excluded certain ground leases under which the Company's sub-tenants are responsible for paying the rent under these leases directly to the ground lessor.

	Future Minimum Lease Payments
2019	$	18,479
2020	18,191
2021	17,929
2022	18,118
2023	17,772
Thereafter	196,670
Total	$	287,159