LEASES

3 Months Ended

Mar. 31, 2020

The Company determines if a contractual arrangement is a lease at inception. As a lessee, the Company has non-cancelable lease agreements for real estate and its corporate office space that are classified as operating leases. The Company's operating leases are included in operating lease right-of-use ("ROU") assets and operating lease liabilities in its condensed consolidated balance sheets. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company's operating leases do not provide an implicit rate, the Company used its incremental borrowing rate based on the information available at commencement date in determining the discount rate for the present value of the lease payments. To the extent that the lease agreements provide for fixed increases throughout the term of the lease, the Company recognizes lease expense on a straight-line basis over the expected lease terms.

Real Estate Leasehold Interests

The Company has eight properties that are subject to non-cancelable leasehold interest agreements with remaining lease terms ranging from 14 to 72 years, inclusive of extension options that the Company anticipates exercising. Rent expense under these leasehold interest agreements is included in property operating expenses in the accompanying condensed consolidated statements of operations and amounted to $0.4 million and $0.4 million for the three months ended March 31, 2020 and 2019, respectively.

Office Leases

The Company has entered into non-cancelable lease agreements for its corporate office space with remaining lease terms ranging from three to nine years. Rent expense related to these office leases is included in general and administrative expenses in the accompanying condensed consolidated statements of operations and amounted to $0.1 million and $0.1 million for the three months ended March 31, 2020 and 2019, respectively.

The weighted-average remaining lease term and the weighted-average discount rate for the Company's operating leases as of March 31, 2020 are as follows:

March 31, 2020

Weighted-average remaining lease term

Real estate leasehold interests

28 years

Office leases

7 years

Weighted-average remaining discount rate

Real estate leasehold interests

4.9

Office leases

3.8

As of March 31, 2020, the future minimum lease payments under the Company's operating leases, for which the Company is a lessee, are as follows (in thousands):


Year Ending December 31,	Real Estate Leasehold Interests		Office Leases		Total
Remainder of 2020	$	1,071	$	291	$	1,362
2021	1,444		471		1,915
2022	1,459		465		1,924
2023	1,464		430		1,894
2024	1,470		450		1,920
2025 through 2092	36,728		1,080		37,808
Total lease payments	$	43,636	$	3,187	$	46,823
Less imputed interest	(21,173)		(407)		(21,580)
Total	$	22,463	$	2,780	$	25,243

As of December 31, 2019, the future minimum lease payments under the Company's operating leases, for which the Company is a lessee, are as follows (in thousands):


Year Ending December 31,	Real Estate Leasehold Interests		Office Leases		Total
2020	$	1,419	$	286	$	1,705
2021	1,444		387		1,831
2022	1,459		381		1,840
2023	1,464		346		1,810
2024	1,470		353		1,823
2025 through 2092	36,728		691		37,419
Total lease payments	$	43,984	$	2,444	$	46,428
Less imputed interest	(21,440)		(323)		(21,763)
Total	$	22,544	$	2,121	$	24,665