LEASES (UNITED DOMINION REALTY, L.P.) (Tables)

12 Months Ended

Dec. 31, 2019

Lease

Lessee - Future minimum lease payments and total operating lease liabilities

Future minimum lease payments and total operating lease liabilities from our ground leases as of December 31, 2019 are as follows (dollars in thousands):

	Ground Leases
2020	$	12,442
2021		12,442
2022		12,442
2023		12,442
2024		12,442
Thereafter		455,221
Total future minimum lease payments (undiscounted)		517,431
Difference between future undiscounted cash flows and discounted cash flows		(318,873)
Total operating lease liabilities (discounted)	$	198,558

Lessee - components of operating lease expenses

The components of operating lease expenses from our ground leases and office space were as follows (dollars in thousands):

	Year Ended
	December 31, 2019
Ground lease expense:
Contractual ground lease rent expense	$	8,272
Variable ground lease expense (a)		664
Total ground lease expense (b)		8,936
Contractual office space lease expense (b)		70
Total operating lease expense (c) (d)	$	9,006

(a) Variable ground lease expense includes adjustments such as changes in the consumer price index and payments based on a percentage of income of the lessee.

(b) Ground lease and office space lease expense is reported within the line item Other operating expenses and office space expense is recorded in General and administrative on the Consolidated Statements of Operations.

(c) For the year ended December 31, 2019, Operating lease right-of-use assets and Operating lease liabilities amortized by $1.2 million and $0.8 million, respectively. The Company recorded $0.4 million of total operating lease expense during the year ended December 31, 2019, due to the net impact of the amortization. 

(d) No leases qualified for the short-term lease exception during the year ended December 31, 2019. As such, short-term lease expense was zero for the year ended December 31, 2019.

Lessor - Future minimum lease payments

Future minimum lease payments from our retail and commercial leases as of December 31, 2019 are as follows (dollars in thousands):

	Retail and Commercial Leases
2020	$	22,568
2021		22,055
2022		20,443
2023		19,057
2024		17,304
Thereafter		78,818
Total future minimum lease payments (a)	$	180,245

(a) We have excluded our apartment home leases from this table as our apartment home leases generally have initial terms of 12 months or less.

United Dominion Realty L.P.

Lease

Lessee - Future minimum lease payments and total operating lease liabilities

Future minimum lease payments and total operating lease liabilities from our ground and equipment leases as of December 31, 2019 are as follows (dollars in thousands):

	Ground Leases		Equipment Leases		Total
2020	$	12,442	$	152	$	12,594
2021		12,442		156		12,598
2022		12,442		159		12,601
2023		12,442		163		12,605
2024		12,442		166		12,608
Thereafter		455,221		869		456,090
Total future minimum lease payments (undiscounted)		517,431		1,665		519,096
Difference between future undiscounted cash flows and discounted cash flows		(318,873)		(222)		(319,095)
Total operating lease liabilities (discounted)	$	198,558	$	1,443	$	200,001

Lessee - components of operating lease expenses

The components of operating lease expenses from our ground and equipment leases were as follows (dollars in thousands):

	Year Ended
	December 31, 2019
Ground lease expense:
Contractual ground lease rent expense	$	8,272
Variable ground lease expense (a)		664
Total ground lease expense (b)		8,936
Contractual equipment lease expense (b)		19
Total operating lease expense (c) (d)	$	8,955

(a) Variable ground lease expense includes adjustments such as changes in the consumer price index and payments based on a percentage of income of the lessee.

(b) Ground lease and equipment lease expense is reported within the line item Other operating expenses on the Consolidated Statements of Operations.

(c) For the year ended December 31, 2019, Operating lease right-of-use assets and Operating lease liabilities amortized by $1.0 million and $0.7 million, respectively. The Operating Partnership recorded $0.3 million of total operating lease expense during the year ended December 31, 2019, due to the net impact of the amortization. 

(d) No leases qualified for the short-term lease exception during the year ended December 31, 2019. As such, short-term lease expense was zero for the year ended December 31, 2019.

Lessor - Future minimum lease payments

Future minimum lease payments from our retail and commercial leases as of December 31, 2019 are as follows (dollars in thousands):

	Retail and Commercial Leases
2020	$	7,733
2021		7,395
2022		6,791
2023		6,466
2024		5,801
Thereafter		13,826
Total future minimum lease payments (a)	$	48,012

(a) We have excluded our apartment home leases from this table as our apartment home leases generally have initial terms of 12 months of less.