Leases (Tables)

12 Months Ended

Dec. 31, 2018

Summary of components of net investment in DFLs

The components of net investment in DFLs consisted of the following (dollars in thousands):



	December 31,
	2018			2017
Minimum lease payments receivable	$	1,013,976		$	1,062,452
Estimated residual value	507,484			504,457
Less unearned income	(807,642		)	(852,557		)
Net investment in direct financing leases	$	713,818		$	714,352
Properties subject to direct financing leases	29			29

Summary of minimum lease payments for DFLs

The following table summarizes future minimum lease payments contractually due under DFLs at December 31, 2018 (in thousands):



Year	Amount
2019	$	114,970
2020	63,308
2021	63,687
2022	58,135
2023	58,570
Thereafter	655,306
	$	1,013,976

Schedule of the Company's internal ratings for DFLs

The following table summarizes the Company’s internal ratings for net investment in DFLs at December 31, 2018 (dollars in thousands):



				Internal Ratings
Segment	Carrying Amount		Percentage of DFL Portfolio	Performing DFLs		Watch List DFLs		Workout DFLs
Senior housing triple-net	$	629,214	88	$	278,503	$	350,711	$	—
Other non-reportable segments	84,604		12	84,604		—		—
	$	713,818	100	$	363,107	$	350,711	$	—

The following table summarizes the Company’s internal ratings for loans receivable at December 31, 2018 (dollars in thousands):



	Carrying Amount		Percentage of Loan Portfolio	Internal Ratings
Investment Type	Carrying Amount		Percentage of Loan Portfolio	Performing Loans		Watch List Loans		Workout Loans
Real estate secured	$	42,037	67	$	42,037	$	—	$	—
Other secured	20,961		33	20,961		—		—
	$	62,998	100	$	62,998	$	—	$	—

Summary of future minimum lease payments for operating leases

The following table summarizes future minimum lease payments to be received, excluding operating expense reimbursements, from tenants under non-cancelable operating leases as of December 31, 2018 (in thousands):



Year	Amount
2019	$	971,417
2020	928,102
2021	853,451
2022	751,972
2023	675,537
Thereafter	2,320,847
	$	6,501,326

Future minimum lease obligations under non-cancelable ground and other operating leases as of December 31, 2018 were as follows (in thousands):



Year	Amount
2019	$	5,597
2020	5,687
2021	5,776
2022	5,862
2023	5,983
Thereafter	466,130
	$	495,035

Certain leases, including DFLs contain purchase options whereby the tenant may elect to acquire the underlying real estate. Annualized base rent from leases subject to purchase options, summarized by the year the purchase options are exercisable, are as follows (dollars in thousands):



Year	Annualized Base Rent⁽¹⁾		Number of Properties
2019	$	23,771	10
2020	14,545		4
2021	12,747		6
2022	13,315		3
Thereafter	50,577		34
	$	114,955	57

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(1)	Represents the most recent month’s base rent including additional rent floors and cash income from DFLs annualized for 12 months. Base rent does not include tenant recoveries, additional rents in excess of floors and non-cash revenue adjustments (i.e., straight-line rents, amortization of market lease intangibles, DFL non-cash interest and deferred revenues).