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Leases

12 Months Ended

Dec. 31, 2019

Lessee Disclosures

The components of lease cost for the years ended December 31, 2019, 2018, and 2017 were as follows (in thousands):



	Years Ended December 31,
	2019		2018 ^(b)		2017 ^(b)
Operating lease cost	$	2,700	$	2,962	$	2,686
Finance lease cost:
Amortization of right-of-use assets ^(a)	369		—		—
Interest on lease liabilities	568		—		—

(a) Includes amortization of below-market ground lease intangible assets.

(b) All of the Company's leases were classified as operating leases prior to 2019.

The table below presents supplemental cash flow information related to leases during the years ended December 31, 2019, 2018, and 2017 (in thousands):



	Years Ended December 31,
	2019		2018 ^(a)		2017 ^(a)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,969	$	2,354	$	2,103
Operating cash flows from finance leases	533		—		—

(a) All of the Company's leases were classified as operating leases prior to 2019.

Additional information related to leases as of December 31, 2019 and 2018 were as follows:



	December 31,
	2019		2018 ^(a)
Weighted Average Remaining Lease Term (years)
Operating leases	45.4		46.2
Finance leases	41.2		0.0

Weighted Average Discount Rate ^(b)
Operating leases	5.4	%	—	%
Finance leases	5.2	%	—	%

(a) All of the Company's leases were classified as operating leases prior to 2019.

(b) Prior to the adoption of ASC 842 on January 1, 2019, the use of a discount rate to calculate lease liability as the net present value of the minimum lease payments was not required.

The undiscounted cash flows to be paid on an annual basis for the next five years and thereafter are presented below. The total amount of lease payments, on an undiscounted basis, are reconciled to the lease liability, on the consolidated balance sheet by considering the present value discount.



Year Ending December 31,	Operating Leases			Finance Leases
	(in thousands)
2020	$	2,080		$	864
2021	2,137			864
2022	2,361			868
2023	2,400			873
2024	2,436			888
Thereafter	103,524			43,014
Total undiscounted cash flows	114,938			47,371
Present value discount	(73,464		)	(29,468		)
Discounted cash flows	$	41,474		$	17,903

Lessor Disclosures

Rental revenue for the years ended December 31, 2019, 2018, and 2017 comprised the following (in thousands):



	Years Ended December 31,
	2019			2018			2017
Base rent and tenant charges	$	147,309		$	114,012		$	107,320
Accrued straight-line rental adjustment	3,402			2,731			1,222
Lease incentive amortization	(739		)	(732		)	(785		)
Above/below market lease amortization	1,367			947			980
Total rental revenue	$	151,339		$	116,958		$	108,737

The Company's commercial tenant leases provide for minimum rental payments during each of the next five years and thereafter as follows (in thousands):



Year Ending December 31,	Operating Leases
2020	$	96,374
2021	90,165
2022	82,862
2023	72,673
2024	61,926
Thereafter	266,467
Total	$	670,467

Leases

Lessee Disclosures

The components of lease cost for the years ended December 31, 2019, 2018, and 2017 were as follows (in thousands):



	Years Ended December 31,
	2019		2018 ^(b)		2017 ^(b)
Operating lease cost	$	2,700	$	2,962	$	2,686
Finance lease cost:
Amortization of right-of-use assets ^(a)	369		—		—
Interest on lease liabilities	568		—		—

(a) Includes amortization of below-market ground lease intangible assets.

(b) All of the Company's leases were classified as operating leases prior to 2019.

The table below presents supplemental cash flow information related to leases during the years ended December 31, 2019, 2018, and 2017 (in thousands):



	Years Ended December 31,
	2019		2018 ^(a)		2017 ^(a)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,969	$	2,354	$	2,103
Operating cash flows from finance leases	533		—		—

(a) All of the Company's leases were classified as operating leases prior to 2019.

Additional information related to leases as of December 31, 2019 and 2018 were as follows:



	December 31,
	2019		2018 ^(a)
Weighted Average Remaining Lease Term (years)
Operating leases	45.4		46.2
Finance leases	41.2		0.0

Weighted Average Discount Rate ^(b)
Operating leases	5.4	%	—	%
Finance leases	5.2	%	—	%

(a) All of the Company's leases were classified as operating leases prior to 2019.

(b) Prior to the adoption of ASC 842 on January 1, 2019, the use of a discount rate to calculate lease liability as the net present value of the minimum lease payments was not required.



Year Ending December 31,	Operating Leases			Finance Leases
	(in thousands)
2020	$	2,080		$	864
2021	2,137			864
2022	2,361			868
2023	2,400			873
2024	2,436			888
Thereafter	103,524			43,014
Total undiscounted cash flows	114,938			47,371
Present value discount	(73,464		)	(29,468		)
Discounted cash flows	$	41,474		$	17,903

Lessor Disclosures

Rental revenue for the years ended December 31, 2019, 2018, and 2017 comprised the following (in thousands):



	Years Ended December 31,
	2019			2018			2017
Base rent and tenant charges	$	147,309		$	114,012		$	107,320
Accrued straight-line rental adjustment	3,402			2,731			1,222
Lease incentive amortization	(739		)	(732		)	(785		)
Above/below market lease amortization	1,367			947			980
Total rental revenue	$	151,339		$	116,958		$	108,737

The Company's commercial tenant leases provide for minimum rental payments during each of the next five years and thereafter as follows (in thousands):



Year Ending December 31,	Operating Leases
2020	$	96,374
2021	90,165
2022	82,862
2023	72,673
2024	61,926
Thereafter	266,467
Total	$	670,467

Leases

Lessee Disclosures

The components of lease cost for the years ended December 31, 2019, 2018, and 2017 were as follows (in thousands):



	Years Ended December 31,
	2019		2018 ^(b)		2017 ^(b)
Operating lease cost	$	2,700	$	2,962	$	2,686
Finance lease cost:
Amortization of right-of-use assets ^(a)	369		—		—
Interest on lease liabilities	568		—		—

(a) Includes amortization of below-market ground lease intangible assets.

(b) All of the Company's leases were classified as operating leases prior to 2019.

The table below presents supplemental cash flow information related to leases during the years ended December 31, 2019, 2018, and 2017 (in thousands):



	Years Ended December 31,
	2019		2018 ^(a)		2017 ^(a)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,969	$	2,354	$	2,103
Operating cash flows from finance leases	533		—		—

(a) All of the Company's leases were classified as operating leases prior to 2019.

Additional information related to leases as of December 31, 2019 and 2018 were as follows:



	December 31,
	2019		2018 ^(a)
Weighted Average Remaining Lease Term (years)
Operating leases	45.4		46.2
Finance leases	41.2		0.0

Weighted Average Discount Rate ^(b)
Operating leases	5.4	%	—	%
Finance leases	5.2	%	—	%

(a) All of the Company's leases were classified as operating leases prior to 2019.

(b) Prior to the adoption of ASC 842 on January 1, 2019, the use of a discount rate to calculate lease liability as the net present value of the minimum lease payments was not required.



Year Ending December 31,	Operating Leases			Finance Leases
	(in thousands)
2020	$	2,080		$	864
2021	2,137			864
2022	2,361			868
2023	2,400			873
2024	2,436			888
Thereafter	103,524			43,014
Total undiscounted cash flows	114,938			47,371
Present value discount	(73,464		)	(29,468		)
Discounted cash flows	$	41,474		$	17,903

Lessor Disclosures

Rental revenue for the years ended December 31, 2019, 2018, and 2017 comprised the following (in thousands):



	Years Ended December 31,
	2019			2018			2017
Base rent and tenant charges	$	147,309		$	114,012		$	107,320
Accrued straight-line rental adjustment	3,402			2,731			1,222
Lease incentive amortization	(739		)	(732		)	(785		)
Above/below market lease amortization	1,367			947			980
Total rental revenue	$	151,339		$	116,958		$	108,737

The Company's commercial tenant leases provide for minimum rental payments during each of the next five years and thereafter as follows (in thousands):



Year Ending December 31,	Operating Leases
2020	$	96,374
2021	90,165
2022	82,862
2023	72,673
2024	61,926
Thereafter	266,467
Total	$	670,467