XML 76 R33.htm IDEA: XBRL DOCUMENT

Leases (Tables)

3 Months Ended

Mar. 31, 2020

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



	Three Months Ended March 31,
	2020			2019
Fixed:
Cash rent	$	269,583		$	282,575
Straight-line rent	2,055			7,412
Lease intangible amortization	(748		)	(731		)
Property operating cost reimbursements	1,428			1,464
Sub-lease ⁽¹⁾	5,263			5,489
Total fixed	277,581			296,209

Variable ⁽²⁾	20,815			20,417
Income from direct financing leases	190			217
Total rental revenue	$	298,586		$	316,843

____________________________________


(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 March 31, 2020 (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⁾
April 1, 2020 - December 31, 2020	$	795,563	$	1,601
2021	1,043,693		2,014
2022	974,602		1,925
2023	906,989		1,565
2024	829,484		510
Thereafter	4,900,832		824
Total	$	9,451,163	$	8,439

____________________________________

(1)

Related to 19 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



	Future Minimum Operating Lease Payments		Future Minimum Direct Financing Lease Payments ⁽¹⁾
April 1, 2020 - December 31, 2020	$	795,563	$	1,601
2021	1,043,693		2,014
2022	974,602		1,925
2023	906,989		1,565
2024	829,484		510
Thereafter	4,900,832		824
Total	$	9,451,163	$	8,439

____________________________________

(1)

Lease Cost

The following table presents the lease expense components for the three months ended March 31, 2020 and 2019 (in thousands):



	Three Months Ended March 31,
	2020			2019
Operating lease cost ⁽¹⁾	$	7,575		$	6,978
Sublease income ⁽²⁾	$	(5,263	)	$	(5,489	)

___________________________________


(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.

Subsequent to initial measurement of $233.3 million and $236.3 million, respectively, the Company reduced the right-of-use assets by $3.4 million and operating lease liabilities by $3.6 million, for non-cash activity related to dispositions and lease modifications during the three months ended March 31, 2019. During the three months ended March 31, 2020, the Company reduced the right-of-use assets and operating lease liabilities each by $0.6 million.

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 March 31, 2020 (in thousands).



	Future Minimum Lease Payments
April 1, 2020 - December 31, 2020	$	16,568
2021	22,099
2022	21,938
2023	21,591
2024	21,037
Thereafter	225,460
Total	328,693
Less: imputed interest	111,126
Total	$	217,567