Leases

The Company adopted Topic

842,

January 1, 2019,

and in connection with the adoption the Company recorded a ROU asset of

$106.0

million and a corresponding lease liability of

$98.7

million (see Footnote

to the Notes to the Company’s Condensed Consolidated Financial Statements for further discussion on the adoption of Topic

842

). As the lessee, the Company currently leases real estate space under noncancelable operating lease agreements for ground leases and administrative office leases. The Company’s leases have remaining lease terms ranging from less than

one

year to

years, some of which include options to extend the terms for up to an additional

years. The Company does

not

include any of its renewal options in its lease terms for calculating its lease liability as the renewal options allow the Company to maintain operational flexibility and it is

not

reasonably certain it will exercise these renewal options at this time. The weighted-average remaining non-cancelable lease term for the Company’s operating leases was

21.1

years at

March 31, 2019.

The weighted-average discount rate was

6.59%

March 31, 2019.

The Company’s operating lease liabilities are determined based on the estimated present value of the Company’s minimum lease payments under its lease agreements. The discount rate used to determine the lease liabilities is based on the estimated incremental borrowing rate on a lease by lease basis. When calculating the incremental borrowing rates, the Company utilized data from (i) its recent debt issuances, (ii) publicly available data for instruments with similar characteristics, (iii) observable mortgage rates and (iv) unlevered property yields and discount rates. The Company then applied adjustments to account for considerations related to term and security that

may

not

be fully incorporated by the data sets.

The components of the Company’s lease expense, which are included in rent expense and general and administrative expense on the Company’s Condensed Consolidated Statements of Income, were as follows (in thousands):

	Three Months End ed March 31, 2019
Lease cost:
Operating lease cost	$	3,328
Variable lease cost		269
Total lease cost	$	3,597

The future minimum lease payments to be paid under noncancelable operating leases in effect at

March 31, 2019

and

December 31, 2018,

are as follows (in thousands):

Year End ing December 31,		As of March 31, 2019			As of December 31, 2018
2019	$	9,677		$	12,206
2020		10,868			9,901
2021		10,436			9,716
2022		9,968			9,236
2023		9,641			8,936
Thereafter		136,721			115,788
Total minimum lease payments	$	187,311		$	165,783

Less imputed interest		(90,178	)
Total operating lease liabilities	$	97,133

The future minimum revenues from rental properties under the terms of all noncancelable tenant operating leases in effect, assuming

new or renegotiated leases are executed for such premises, at

March 31, 2019

and

December 31, 2018,

are as follows (in thousands):

Year Ending December 31,		As of March 31, 2019		As of December 31, 2018
2019	$	616,714	$	816,409
2020		789,616		769,074
2021		714,805		690,678
2022		618,956		594,638
2023		517,874		492,631
Thereafter		2,648,568		2,540,231
Total minimum revenues	$	5,906,533	$	5,903,661