Real Estate Leases

3 Months Ended

Mar. 31, 2019

The Company’s properties are generally leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2034. The Company’s leases generally require the lessee to pay minimum rent, with fixed rent renewal terms or increases based on a Consumer Price Index and and may also include additional rent, which may include taxes (including property taxes), insurance, maintenance and other operating costs associated with the leased property.

Some leases provide the lessee, during the term of the lease, with an option or right of first refusal to purchase the leased property. Some leases also allow the lessee to renew or extend their lease term or in some cases terminate their lease, based on conditions provided in the lease.

Future minimum lease payments under the non-cancelable operating leases due the Company for the years ending December 31, as of March 31, 2019, are as follows (in thousands):



2019 (nine months ending December 31)	$	32,823
2020	41,304
2021	38,200
2022	34,688
2023	30,177
2024 and thereafter	156,754
	$	333,946

Straight-line rental income

Rental income is recognized as earned over the life of the lease agreement on a straight-line basis. Straight-line rent included in rental income was approximately $0.3 million and $0.4 million, respectively, for the three months ended March 31, 2019 and 2018.

Deferred revenue

Rent received but not yet earned is deferred until such time it is earned. Deferred revenue, included in other liabilities, was approximately $1.5 million and $1.6 million, respectively, at March 31, 2019 and December 31, 2018.