Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Schedule of Company's lease income

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

	Year Ended December 31,
	2019		2018		2017
Income from DFLs	$	17,287	$	23,616	$	23,820
Cash payments received	16,005		19,633		19,494

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

	Year Ended December 31,
	2019		2018		2017
Fixed income from operating leases	$	984,942	$	1,013,757	$	944,796
Variable income from operating leases	237,136		223,479		268,853
Interest income from direct financing leases	37,481		54,274		54,217

Schedule of components of net investment in DFLs

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

	December 31, 2019
Present value of minimum lease payments receivable	$	19,138
Present value of estimated residual value	84,604
Less deferred selling profits	(19,138		)
Net investment in direct financing leases before allowance	84,604
Allowance for direct financing lease losses	—
Net investment in direct financing leases	$	84,604
Properties subject to direct financing leases	2

	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 the Company's internal ratings for DFLs

The following table summarizes the Company’s internal ratings for DFLs at December 31, 2019 (dollars in thousands):

				Internal Ratings
Segment	Carrying Amount		Percentage of DFL Portfolio	Performing DFLs		Watch List DFLs		Workout DFLs
Other non-reportable segments	$	84,604	100	$	84,604	—		—
	$	84,604	100	$	84,604	$	—	$	—

The following table summarizes the Company’s internal ratings for loans receivable at December 31, 2019 (dollars in thousands):

	Carrying Amount		Percentage of Loan Portfolio	Internal Ratings
Investment Type				Performing Loans		Watch List Loans		Workout Loans
Real estate secured	$	161,964	85	$	161,964	$	—	$	—
Other secured	28,615		15	28,615		—		—
	$	190,579	100	$	190,579	$	—	$	—

Schedule of future minimum lease payments contractually due under DFLs

The following table summarizes future minimum lease payments contractually due under DFLs at December 31, 2019 (in thousands):

Year	Amount
2020	$	9,553
2021	8,409
2022	1,176
2023	—
2024	—
Thereafter	—
Undiscounted minimum lease payments receivable	19,138
Less: imputed interest	—
Present value of minimum lease payments receivable	$	19,138

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 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 December 31, 2019 (in thousands):

Year	Amount
2020	$	998,376
2021	968,622
2022	904,799
2023	822,259
2024	708,871
Thereafter	2,522,333
	$	6,925,260

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 tenant purchase options

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
2020	$	17,219	10
2021	27,947		7
2022	10,924		3
2023	—		—
2024	2,924		1
Thereafter	25,022		19
	$	84,036	40

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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).

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):

	Year Ended December 31,
Lease Expense Information:	2019		2018		2017
Total lease expense(1)	$	16,238	$	14,783	$	13,674

_______________________________________

(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.

	Year Ended December 31,
Supplemental Cash Flow Information:	2019		2018		2017
Cash paid for amounts included in the measurement of lease liability:
Operating cash flows for operating leases	$	12,727	11,655		$	10,745
ROU asset obtained in exchange for new lease liability:
Operating leases	$	5,733	$	—	$	—

Weighted Average Lease Term and Discount Rate:	December 31, 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 December 31, 2019 (in thousands):

Year	Amount
2020	$	9,407
2021	9,208
2022	9,045
2023	8,985
2024	7,139
Thereafter	451,790
Undiscounted minimum lease payments included in the lease liability	495,574
Less: imputed interest	(338,963		)
Present value of lease liability	$	156,611

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