Leases

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Leases

Leases

Lease Income

The following table summarizes the Company’s lease income, excluding discontinued operations (in thousands):

	Three Months Ended March 31,
	2021		2020
Fixed income from operating leases	$	262,937	$	226,226
Variable income from operating leases	65,035		56,091
Interest income from direct financing leases	2,163		3,269

Direct Financing Leases

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

	March 31, 2021		December 31, 2020
Present value of minimum lease payments receivable	$	7,758	$	9,804
Present value of estimated residual value	44,706		44,706
Less deferred selling profits	(7,758)		(9,804)
Net investment in direct financing leases	$	44,706	$	44,706
Properties subject to direct financing leases	1		1

Direct Financing Lease Internal Ratings

At March 31, 2021, the Company had one hospital under a DFL with a carrying amount of $45 million and an internal rating of performing.

2020 Direct Financing Lease Sale

During the first quarter of 2020, the Company sold a hospital under a DFL for $82 million and recognized a gain on sale of $42 million, which is included in other income (expense), net.

Lease Costs

The following table provides supplemental cash flow information regarding the Company’s leases for which it is the lessee, such as ground leases (dollars in thousands):

	Three Months Ended March 31,
Supplemental Cash Flow Information:	2021		2020
Right-of-use asset obtained in exchange for new lease liability:
Operating leases	$	5,020	$	—

COVID-19 Rent Deferrals

During the second and third quarters of 2020, the Company agreed to defer rent from certain tenants in the medical office segment, with the requirement that all deferred rent be repaid by the end of 2020. Under this program, through December 31, 2020, approximately $6 million of rent was deferred for the medical office segment, all of which had been collected as of December 31, 2020.

Additionally, through December 31, 2020, the Company granted approximately $1 million of rent deferrals to certain tenants in the life science segment, all of which had been collected as of December 31, 2020.

No such deferrals were granted during the three months ended March 31, 2021 and 2020.

The rent deferrals granted do not impact the pattern of revenue recognition or amount of revenue recognized (refer to Note 2 for additional information).

Leases

Leases

Lease Income

The following table summarizes the Company’s lease income, excluding discontinued operations (in thousands):

	Three Months Ended March 31,
	2021		2020
Fixed income from operating leases	$	262,937	$	226,226
Variable income from operating leases	65,035		56,091
Interest income from direct financing leases	2,163		3,269

Direct Financing Leases

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

	March 31, 2021		December 31, 2020
Present value of minimum lease payments receivable	$	7,758	$	9,804
Present value of estimated residual value	44,706		44,706
Less deferred selling profits	(7,758)		(9,804)
Net investment in direct financing leases	$	44,706	$	44,706
Properties subject to direct financing leases	1		1

Direct Financing Lease Internal Ratings

At March 31, 2021, the Company had one hospital under a DFL with a carrying amount of $45 million and an internal rating of performing.

2020 Direct Financing Lease Sale

During the first quarter of 2020, the Company sold a hospital under a DFL for $82 million and recognized a gain on sale of $42 million, which is included in other income (expense), net.

Lease Costs

The following table provides supplemental cash flow information regarding the Company’s leases for which it is the lessee, such as ground leases (dollars in thousands):

	Three Months Ended March 31,
Supplemental Cash Flow Information:	2021		2020
Right-of-use asset obtained in exchange for new lease liability:
Operating leases	$	5,020	$	—

COVID-19 Rent Deferrals

During the second and third quarters of 2020, the Company agreed to defer rent from certain tenants in the medical office segment, with the requirement that all deferred rent be repaid by the end of 2020. Under this program, through December 31, 2020, approximately $6 million of rent was deferred for the medical office segment, all of which had been collected as of December 31, 2020.

Additionally, through December 31, 2020, the Company granted approximately $1 million of rent deferrals to certain tenants in the life science segment, all of which had been collected as of December 31, 2020.

No such deferrals were granted during the three months ended March 31, 2021 and 2020.

The rent deferrals granted do not impact the pattern of revenue recognition or amount of revenue recognized (refer to Note 2 for additional information).