LEASES (Tables)

6 Months Ended

Jun. 30, 2020

LEASES

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 June 30, 2020 are as follows (dollars in thousands):

	Ground Leases
2020	$	6,220
2021		12,442
2022		12,442
2023		12,442
2024		12,442
Thereafter		455,221
Total future minimum lease payments (undiscounted)		511,209
Difference between future undiscounted cash flows and discounted cash flows		(314,117)
Total operating lease liabilities (discounted)	$	197,092

Lessee - components of operating lease expenses

The components of operating lease expenses were as follows (dollars in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Lease expense:
Contractual lease expense	$	3,216	$	2,139	$	6,386	$	4,278
Variable lease expense (a)		44		143		87		282
Total operating lease expense (b)(c)	$	3,260	$	2,282	$	6,473	$	4,560

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

(b) Lease expense is reported within the line item Other operating expenses on the Consolidated Statements of Operations.

(c) For the six months ended June 30, 2020, Operating lease right-of-use assets and Operating lease liabilities amortized by $1.6 million and $1.5 million, respectively, and for the six months ended June 30, 2019 Operating lease right-of-use assets and Operating lease liabilities amortized by $0.4 million and $0.2 million, respectively. Due to the net impact of the amortization, the Company recorded $0.1 million and $0.1 million of total operating lease expense during the three months ended June 30, 2020 and 2019, respectively, and $0.2 million and $0.2 million of total operating lease expense during the six months ended June 30, 2020 and 2019, respectively. 

Lessor - Future minimum lease payments

Future minimum lease payments from our retail and commercial leases as of June 30, 2020 are as follows (dollars in thousands):

	Retail and Commercial Leases
2020	$	11,020
2021		22,287
2022		20,370
2023		18,885
2024		17,219
Thereafter		80,684
Total future minimum lease payments (a)	$	170,465

(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.