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Leases (Tables)

12 Months Ended

Dec. 31, 2023

The components of lease expense were as follows for the periods presented (in thousands):


		Year Ended December 31,
	Classification	2023		2022		2021
Operating lease cost: (1)
Real estate lease expense	Property operating expenses	$	21,970	$	22,150	$	22,642
Non-real estate investment lease expense	General and administrative expenses	7,243		5,794		4,596
Finance lease cost:
Amortization of leased assets	Property operating expenses	5,854		6,837		8,105
Interest on lease liabilities	Interest expense	4,050		6,164		6,574
Sublease income	Rental income	(3,933)		(11,487)		(8,687)
Total		$	35,184	$	29,458	$	33,230

(1) Includes short-term leases which are immaterial

Supplemental cash flow information related to leases was as follows for the periods indicated (in thousands):


		Year Ended December 31,
	Classification	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	Decrease (increase) in receivables and other assets	$	(590)	$	8,805	$	9,081
Operating cash flows from operating leases	Increase (decrease) in accrued expenses and other liabilities	(2,037)		(5,570)		(6,008)
Operating cash flows from finance leases	Decrease (increase) in receivables and other assets	3,061		8,672		8,336
Financing cash flows from finance leases	Other financing activities	(2,704)		(2,255)		(3,578)

Maturities of Lease Liabilities, Operating Leases

Maturities of lease liabilities as of December 31, 2023 are as follows (in thousands):


	Operating Leases		Finance Leases
2024	$	19,329	$	5,547
2025	18,800		3,980
2026	16,637		4,030
2027	16,494		3,991
2028	16,291		3,948
Thereafter	863,847		369,892
Total lease payments	951,398		391,388
Less: Imputed interest	(647,845)		(311,711)
Total present value of lease liabilities	$	303,553	$	79,677

Maturities of Lease Liabilities, Finance Leases

Maturities of lease liabilities as of December 31, 2023 are as follows (in thousands):


	Operating Leases		Finance Leases
2024	$	19,329	$	5,547
2025	18,800		3,980
2026	16,637		4,030
2027	16,494		3,991
2028	16,291		3,948
Thereafter	863,847		369,892
Total lease payments	951,398		391,388
Less: Imputed interest	(647,845)		(311,711)
Total present value of lease liabilities	$	303,553	$	79,677

Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases in which we are the lessee is as follows for the periods presented (in thousands, except lease terms and discount rate):


	Classification	December 31, 2023			December 31, 2022
Right of use assets:
Operating leases - real estate	Right of use assets, net	$	283,293		$	287,984
Finance leases - real estate	Right of use assets, net	67,676			35,958
Real estate right of use assets, net		350,969			323,942
Operating leases - non-real estate investments	Receivables and other assets	11,338			10,119
Finance leases - held for sale(1)	Real property held for sale, net of accumulated depreciation	—			116,453
Total right of use assets, net		$	362,307		$	450,514

Lease liabilities:
Operating leases		$	303,553		$	302,360
Finance leases		79,677			113,464
Total lease liabilities		$	383,230		$	415,824

Weighted average remaining lease term (years):
Operating leases		45.6			46.0
Finance leases		60.7			19.8

Weighted average discount rate:
Operating leases		5.27		%	5.56		%
Finance leases		7.71		%	5.01		%

(1) During the year ended December 31, 2023, we contributed finance leases at seven properties previously classified as held for sale into a newly formed unconsolidated joint venture, which recognized the purchase option within the leases. See Note 5 for further discussion.

Operating Lease, Lease Income

Rental income related to operating leases and the corresponding variable lease payments, which primarily represents the reimbursement of operating costs such as common area maintenance expenses, utilities, insurance and real estate taxes for the periods indicated were as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Fixed income from operating leases	$	1,344,096	$	1,258,238	$	1,193,837
Variable lease income	211,977		193,548		180,858

Undiscounted Cash Flows for Future Minimum Lease Payments Receivable

The following table sets forth the future minimum lease payments receivable for leases in effect at December 31, 2023 (excluding properties in our Seniors Housing Operating portfolio and excluding any operating expense reimbursements) (in thousands):


2024	$	1,391,509
2025	1,379,176
2026	1,343,749
2027	1,323,525
2028	1,307,766
Thereafter	10,469,656
Totals	$	17,215,381