Leases (Tables)

6 Months Ended

Jun. 30, 2019

Leases, Capital [Abstract]

Schedule of Company's Lease Income

The following table summarizes the Company’s lease income (dollars in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Fixed income from operating leases	$	237,607	$	262,885	$	474,830	$	526,240
Variable income from operating leases	63,590		54,955		120,589		108,352
Interest income from direct financing leases	10,190		13,490		23,714		26,756

The following table summarizes the activity of the DFL Sale Portfolio during the periods presented (dollars in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Income from DFLs	$	6,013	$	5,782	$	11,875	$	11,552
Cash payments received	5,758		4,838		10,593		9,484

Schedule of Components of Net Investment in DFLs

Net investment in DFLs consists of the following (dollars in thousands):

	June 30, 2019
Present value of minimum lease payments receivable	$	264,277
Present value of estimated residual value	114,364
Less deferred selling profits	(11,390		)
Net investment in direct financing leases before allowance	367,251
Allowance for direct financing lease losses	(10,147		)
Net investment in direct financing leases	$	357,104
Properties subject to direct financing leases	15

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

Schedule of Future Minimum Lease Payments Contractually Due Under DFLs

The following table summarizes future minimum lease payments contractually due under DFLs at June 30, 2019 (in thousands):

Year	Amount
2019 (six months)	$	19,577
2020	32,558
2021	31,989
2022	25,346
2023	24,774
2024	25,393
Thereafter	390,893
Undiscounted minimum lease payments receivable	550,530
Less: imputed interest	(286,253		)
Present value of minimum lease payments receivable	$	264,277

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

Summary of the Company's Internal Ratings for DFLs

The following table summarizes the Company’s internal ratings for DFLs at June 30, 2019 (dollars in thousands):

	Carrying Amount		Percentage of DFL Portfolio	Internal Ratings
Segment				Performing DFLs		Watch List DFLs		Workout DFLs
Senior housing triple-net	$	272,500	76	$	272,500	$	—	$	—
Other non-reportable segments	84,604		24	84,604		—		—
	$	357,104	100	$	357,104	$	—	$	—

The following table summarizes the Company’s internal ratings for loans receivable at June 30, 2019 (dollars in thousands):

	Carrying Amount		Percentage of Loan Portfolio	Internal Ratings
Investment Type				Performing Loans		Watch List Loans		Workout Loans
Real estate secured	$	98,704	79	$	98,704	$	—	$	—
Other secured	25,855		21	25,855		—		—
	$	124,559	100	$	124,559	$	—	$	—

Schedule of Future Minimum Lease Payments Due Under 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 June 30, 2019 (in thousands):

Year	Amount
2019 (six months)	$	480,607
2020	947,697
2021	889,007
2022	788,835
2023	714,922
2024	620,603
Thereafter	2,024,028
	$	6,465,699

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

Schedule of Other Lease Information

The following tables provide information regarding the Company’s leases to which it is the lessee, such as corporate offices and ground leases (dollars in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
Lease Expense Information:	2019		2018		2019		2018
Total lease expense(1)	$	4,117	$	3,578	$	7,996	$	7,225

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(1) Lease expense related to corporate assets is included in general and administrative expenses and lease expense related to ground leases is included within operating expenses in the Company’s consolidated statements of operations.

	Six Months Ended June 30,
Supplemental Cash Flow Information:	2019		2018
Cash paid for amounts included in the measurement of lease liability:
Operating cash flows for operating leases	$	6,235	$	5,723
ROU asset obtained in exchange for new lease liability:
Operating leases	$	4,084	$	—

Weighted Average Lease Term and Discount Rate:	June 30, 2019
Weighted average remaining lease term (years):
Operating leases	51
Weighted average discount rate:
Operating leases	4.36	%

Schedule of Future Minimum Lease Obligations, 842

The following table summarizes future minimum lease payments under non-cancelable ground and other operating leases included in the Company’s lease liability as of June 30, 2019 (in thousands):

Year	Amount
2019 (six months)	$	4,781
2020	8,934
2021	8,568
2022	8,228
2023	7,915
2024	6,761
Thereafter	448,712
Undiscounted minimum lease payments included in the lease liability	493,899
Less: imputed interest	(339,022		)
Present value of lease liability	$	154,877

Schedule of Future Minimum Lease Obligations, 840

The following table summarizes future minimum lease obligations under non-cancelable ground and other operating leases as of December 31, 2018 (in thousands):

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