Leases

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Leases

Leases

Lessor

The leases entered into between the customer and us for rental of a Site are renewable upon the consent of both parties or, in some instances, as provided by statute. Long-term leases that are non-cancelable by the tenants are in effect at certain Properties. Rental rate increases at these Properties are primarily a function of increases in the Consumer Price Index, taking into consideration certain conditions. Additionally, periodic market rate adjustments are made as deemed appropriate. In addition, certain state statutes allow entry into long-term agreements that effectively modify lease terms related to rent amounts and increases over the term of the agreements. The following table presents future minimum rents expected to be received under long-term non-cancelable tenant leases, as well as those leases that are subject to long-term agreements governing rent payments and increases:

(amounts in thousands)	As of June 30, 2022
2022	$	83,785
2023	169,442
2024	104,386
2025	40,557
2026	21,644
Thereafter	67,178
Total	$	486,992

Lessee

We lease land under non-cancelable operating leases at 14 Properties expiring at various dates between August 31, 2022 and 2054. For additional information regarding the Westwinds and Nicholson Plaza ground leases that expire August 31, 2022, see Part 1. Item 1. Note 11. Commitments and Contingencies. The majority of the leases have terms requiring fixed payments plus additional rents based on a percentage of gross revenues at those Properties. We also have other operating leases, primarily office space, expiring at various dates through 2032. For the quarters ended June 30, 2022 and 2021, total operating lease payments were $2.9 million and $2.6 million, respectively. For the six months ended June 30, 2022 and 2021, total operating lease payments were $5.5 million and $5.1 million, respectively.

The following table summarizes our minimum future rental payments, excluding variable costs, which are discounted by our incremental borrowing rate to calculate the lease liability for our operating leases as of June 30, 2022:

	As of June 30, 2022
(amounts in thousands)	Ground Leases		Office and Other Leases		Total
2022	$	653	$	2,072	$	2,725
2023	626		3,523		4,149
2024	632		3,097		3,729
2025	637		2,763		3,400
2026	615		2,543		3,158
Thereafter	4,325		13,140		17,465
Total undiscounted rental payments	7,488		27,138		34,626
Less imputed interest	(1,766)		(4,101)		(5,867)
Total lease liabilities	$	5,722	$	23,037	$	28,759

Right-of-use (“ROU”) assets and lease liabilities from our operating leases, included within Other assets, net and Accounts payable and other liabilities on the Consolidated Balance Sheets, were $26.8 million and $28.8 million, respectively, as of June 30, 2022. The weighted average remaining lease term for our operating leases was nine years and the weighted average incremental borrowing rate was 3.8% at June 30, 2022.

ROU assets and lease liabilities from our operating leases, included within Other assets, net and Accounts payable and other liabilities on the Consolidated Balance Sheets, were $30.3 million and $30.7 million, respectively, as of December 31, 2021. The weighted average remaining lease term for our operating leases was seven years and the weighted average incremental borrowing rate was 3.8% at December 31, 2021.

Leases

Leases

Lessor

The leases entered into between the customer and us for rental of a Site are renewable upon the consent of both parties or, in some instances, as provided by statute. Long-term leases that are non-cancelable by the tenants are in effect at certain Properties. Rental rate increases at these Properties are primarily a function of increases in the Consumer Price Index, taking into consideration certain conditions. Additionally, periodic market rate adjustments are made as deemed appropriate. In addition, certain state statutes allow entry into long-term agreements that effectively modify lease terms related to rent amounts and increases over the term of the agreements. The following table presents future minimum rents expected to be received under long-term non-cancelable tenant leases, as well as those leases that are subject to long-term agreements governing rent payments and increases:

(amounts in thousands)	As of June 30, 2022
2022	$	83,785
2023	169,442
2024	104,386
2025	40,557
2026	21,644
Thereafter	67,178
Total	$	486,992

Lessee

We lease land under non-cancelable operating leases at 14 Properties expiring at various dates between August 31, 2022 and 2054. For additional information regarding the Westwinds and Nicholson Plaza ground leases that expire August 31, 2022, see Part 1. Item 1. Note 11. Commitments and Contingencies. The majority of the leases have terms requiring fixed payments plus additional rents based on a percentage of gross revenues at those Properties. We also have other operating leases, primarily office space, expiring at various dates through 2032. For the quarters ended June 30, 2022 and 2021, total operating lease payments were $2.9 million and $2.6 million, respectively. For the six months ended June 30, 2022 and 2021, total operating lease payments were $5.5 million and $5.1 million, respectively.

The following table summarizes our minimum future rental payments, excluding variable costs, which are discounted by our incremental borrowing rate to calculate the lease liability for our operating leases as of June 30, 2022:

	As of June 30, 2022
(amounts in thousands)	Ground Leases		Office and Other Leases		Total
2022	$	653	$	2,072	$	2,725
2023	626		3,523		4,149
2024	632		3,097		3,729
2025	637		2,763		3,400
2026	615		2,543		3,158
Thereafter	4,325		13,140		17,465
Total undiscounted rental payments	7,488		27,138		34,626
Less imputed interest	(1,766)		(4,101)		(5,867)
Total lease liabilities	$	5,722	$	23,037	$	28,759

Right-of-use (“ROU”) assets and lease liabilities from our operating leases, included within Other assets, net and Accounts payable and other liabilities on the Consolidated Balance Sheets, were $26.8 million and $28.8 million, respectively, as of June 30, 2022. The weighted average remaining lease term for our operating leases was nine years and the weighted average incremental borrowing rate was 3.8% at June 30, 2022.

ROU assets and lease liabilities from our operating leases, included within Other assets, net and Accounts payable and other liabilities on the Consolidated Balance Sheets, were $30.3 million and $30.7 million, respectively, as of December 31, 2021. The weighted average remaining lease term for our operating leases was seven years and the weighted average incremental borrowing rate was 3.8% at December 31, 2021.