We lease our operating properties to customers under agreements that are classified as operating leases. We recognize the total minimum lease payments provided for under the leases on a straight-line basis over the lease term. Generally, under the terms of our leases, the majority of our rental expenses, including common area maintenance, real estate taxes and insurance, are recovered from our customers. We record amounts reimbursed by customers in the period that the applicable expenses are incurred, which is generally ratably throughout the term of the lease. We have elected the package of practical expedients that allows lessors to not separate lease and non-lease components by class of underlying asset. This practical expedient allowed us to not separate expenses reimbursed by our customers (“tenant reimbursements”) from the associated rental revenue if certain criteria were met. We assessed these criteria and concluded that the timing and pattern of transfer for rental revenue and the associated tenant reimbursements are the same, and as our leases qualify as operating leases, we accounted for and presented rental revenue and tenant reimbursements as a single component under Lease revenue in our condensed consolidated statements of income for the three months ended March 31, 2019. As a result of our adoption of this practical expedient, we presented $4.2 million of base rental revenue for UHS facilities, $1.3 million of bonus rental revenue for UHS facilities and $233,000 of tenant reimbursement revenue for UHS facilities as a single component (“Lease revenue – UHS facilities”) in the condensed consolidated statements of income for the three months ended March 31, 2018 to conform to the 2019 new presentation. Additionally, we presented $10.3 million of base rental revenues from non-related parties and $2.2 million of tenant reimbursements as a single component (“Lease revenue – Non-related parties”) in the condensed consolidated statements of income for the three months ended March 31, 2018 to conform to the 2019 new presentation.

Minimum future lease revenue from base rents from non-cancelable leases related to properties included in our financial statements on a consolidated basis, excluding increases from changes in the consumer price index, bonus rents and the impact of straight line rent adjustments, are as follows (amounts in thousands):

	March 31, 2019		December 31, 2018

Year ending,
2019	$	43,744	$	56,494
2020		52,546		50,291
2021		47,343		45,357
2022		31,678		30,089
2023		26,326		24,972
Thereafter		68,766		67,288
Total minimum base rents	$	270,403	$	274,491

ASU 2016-02 requires that lessors expense certain initial direct costs, which were capitalizable under the previous leasing standard, as incurred. Upon adoption, only the incremental costs of signing a lease will be capitalizable, which was consistent to our historical practice.

We are the lessee with various third parties, including subsidiaries of UHS, in connection with ground leases for land at fourteen of our consolidated properties. Our right-of-use land assets represent our right to use the land for the lease term and our lease liabilities represent our obligation to make lease payments arising from the leases. Right-of-use assets and lease liabilities were recognized upon adoption of Topic 842 based on the present value of lease payments over the lease term. We use our estimated incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of lease payments. A right-of-use asset and lease liability are not recognized for leases with an initial term of 12 months or less, as these short-term leases are accounted for similar to previous guidance for operating leases. We do not currently have any ground leases with an initial term of 12 months or less. As of March 31, 2019, our condensed consolidated balance sheet includes right-of-use land assets of approximately $8.8 million and ground lease liabilities of approximately $8.8 million.

	Three months ended March 31,
	2019

Operating lease cost	$	118
Total lease cost	$	118

During the three months ended March 31, 2019, the cash paid for amounts included in the measurement of lease liabilities related to our operating leases was approximately $118,000, which is included as an operating cash outflow within the condensed consolidated statement of cash flows and included in other operating expenses within the condensed consolidated statements of income. As of and during the three months ended March 31, 2019, we did not enter into any lease agreements set to commence in the future and there were no newly leased assets for which a right-of-use asset was recorded in exchange for a new lease liability.

Supplemental balance sheet information related to leases was as follows (in thousands):

	March 31,
	2019

Operating Leases
Right-of-use land assets-operating leases	$	8,848

Total lease liabilities	$	8,848

Weighted Average remaining lease term, years
Operating leases		59.0

Weighted Average discount rate
Operating leases		5.07	%

The following table summarizes the fixed, future minimum rental payments, excluding variable costs, which are discounted by our incremental borrowing rate to calculate the lease liabilities for our operating leases in which we are the lessee. Maturities of lease liabilities were as follows (in thousands):

	March 31, 2019		December 31, 2018

Year ending,
2019	$	356	$	474
2020	475		474
2021	475		474
2022	475		474
2023	475		474
Later years		25,640		25,582
Total undiscounted lease payments	$	27,896	$	27,952
less imputed interest		19,048
Total	$	8,848