Operating Leases (Tables)

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Future Minimum Base Rent Under Non-cancelable Operating Leases

The following table sets forth the undiscounted cash flows for future minimum base rents to be received under operating leases as of June 30, 2020 (in thousands):

Twelve Months Ended June 30,
2021	$	256,961
2022	216,923
2023	176,305
2024	134,294
2025	96,251
Thereafter	312,614
Total	$	1,193,348

Lease Cost

The tables below present financial information associated with our leases for the three and six months ended June 30, 2020 and 2019, and as of June 30, 2020 and December 31, 2019.

	Three Months Ended June 30,					Six Months Ended June 30,
Lease Cost (in thousands)	2020		2019			2020		2019
Operating lease cost(1)	$	316	$	285		$	621	$	545
Variable lease cost(1)	12		10			24		23
Sublease income(2)	—		(79		)	—		(158		)
Total lease cost	$	328	$	216		$	645	$	410

(1) Amounts are included in “General and administrative” and “Property expenses” in the accompanying consolidated statements of operations.

(2) Amount is included in “Rental income” in the accompanying consolidated statements of operations.

	Three Months Ended June 30,				Six Months Ended June 30,
Other Information (in thousands)	2020		2019		2020		2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	262	$	283	$	442	$	522
Right-of-use assets obtained in exchange for new operating lease liabilities(1)	$	339	$	—	$	1,353	$	6,720

(1) For the six months ended June 30, 2019, the reported amount includes $3.3 million for operating leases existing on January 1, 2019, the date we adopted ASC 842.

Lease Term and Discount Rate	June 30, 2020		December 31, 2019
Weighted-average remaining lease term	4.3 years		4.7 years
Weighted-average discount rate(1)	3.6	%	3.9	%

(1)

Because the rate implicit in each of our leases was not readily determinable, we used our incremental borrowing rate. In determining our incremental borrowing rate for each lease, we considered recent rates on secured borrowings, observable risk-free interest rates and credit spreads correlating to our creditworthiness, the impact of collateralization and the term of each of our lease agreements.

Maturities of Lease Liabilities

Maturities of lease liabilities as of June 30, 2020 were as follows (in thousands):

July 1, 2020 - December 31, 2020	$	674
2021	1,199
2022	1,201
2023	1,198
2024	1,161
Thereafter	97
Total undiscounted lease payments	$	5,530
Less imputed interest	(440		)
Total lease liabilities	$	5,090