Leases

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

Leases

Lease Income

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Fixed income from operating leases	$	276,430	$	239,715	$	807,677	$	697,510
Variable income from operating leases	77,086		62,226		214,453		175,001
Interest income from direct financing leases	2,179		2,150		6,522		7,569

Direct Financing Leases

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

	September 30, 2021		December 31, 2020
Present value of minimum lease payments receivable	$	3,399	$	9,804
Present value of estimated residual value	44,706		44,706
Less deferred selling profits	(3,399)		(9,804)
Net investment in direct financing leases	$	44,706	$	44,706

Direct Financing Lease Internal Ratings

At September 30, 2021 and December 31, 2020, 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.

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 that were impacted by COVID-19, with the requirement that all deferred rent be repaid by the end of 2020. Under this program, through September 30, 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 September 30, 2020, the Company granted approximately $1 million of rent deferrals to certain tenants in the life science segment that were impacted by COVID-19, all of which had been collected as of December 31, 2020.

No such deferrals were granted during the three and nine months ended September 30, 2021.

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 September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Fixed income from operating leases	$	276,430	$	239,715	$	807,677	$	697,510
Variable income from operating leases	77,086		62,226		214,453		175,001
Interest income from direct financing leases	2,179		2,150		6,522		7,569

Direct Financing Leases

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

	September 30, 2021		December 31, 2020
Present value of minimum lease payments receivable	$	3,399	$	9,804
Present value of estimated residual value	44,706		44,706
Less deferred selling profits	(3,399)		(9,804)
Net investment in direct financing leases	$	44,706	$	44,706

Direct Financing Lease Internal Ratings

At September 30, 2021 and December 31, 2020, 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.

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 that were impacted by COVID-19, with the requirement that all deferred rent be repaid by the end of 2020. Under this program, through September 30, 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 September 30, 2020, the Company granted approximately $1 million of rent deferrals to certain tenants in the life science segment that were impacted by COVID-19, all of which had been collected as of December 31, 2020.

No such deferrals were granted during the three and nine months ended September 30, 2021.

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