Leases (Tables)

6 Months Ended

Jun. 30, 2020

The table below presents the components of sale-type leases for the thee and six months ended June 30, 2020:



	SALES-TYPE LEASES
In thousands	three months ended June 30, 2020		six months ended June 30, 2020
Profit recognized at commencement date	$	68,267	$	68,267	Gain on sales of real estate assets
Interest income	1,553		1,553		Rental income

Future lease payments under the non-cancelable operating and sales-type leases, excluding any reimbursements, as of June 30, 2020 were as follows:


1	See Footnote 2 to the Condensed Consolidated Financial Statements for additional information.

Future lease payments under the non-cancelable operating and sales-type leases, excluding any reimbursements, as of June 30, 2020 were as follows:

The Company’s future lease payments (primarily for its 62 non-prepaid ground leases) as of June 30, 2020 were as follows:



In thousands	OPERATING			FINANCING
2020	$	2,012		$	286
2021	4,844			930
2022	4,875			783
2023	4,913			793
2024	4,969			815
2025 and thereafter	307,665			88,808
Total undiscounted lease payments	329,278			92,415
Discount	(238,019		)	(73,820		)
Lease liabilities	$	91,259		$	18,595

The Company’s future lease payments (primarily for its 62 non-prepaid ground leases) as of June 30, 2020 were as follows:



In thousands	OPERATING			FINANCING
2020	$	2,012		$	286
2021	4,844			930
2022	4,875			783
2023	4,913			793
2024	4,969			815
2025 and thereafter	307,665			88,808
Total undiscounted lease payments	329,278			92,415
Discount	(238,019		)	(73,820		)
Lease liabilities	$	91,259		$	18,595

The following table provides details of the Company's total lease expense for the three and six months ended June 30, 2020 and 2019:



	THREE MONTHS ENDED June 30,						SIX MONTHS ENDED June 30,
In thousands	2020			2019			2020		2019
Operating lease cost
Operating lease expense	$	1,175		$	1,163		$	2,349	$	2,279
Variable lease expense	804			795			1,604		1,535

Finance lease cost
Amortization of right-of-use assets	78			51			148		51
Interest on lease liabilities	240			196			477		196
Total lease expense	$	2,297		$	2,205		$	4,578	$	4,061

Other information
Operating cash flows outflows related to operating leases	$	1,416		$	1,402		$	3,972	$	4,173
Financing cash flows outflows related to financing leases	$	2,847		$	142		$	3,168	$	142
Right-of-use assets obtained in exchange for new finance lease liabilities	$	7,212		$	—		$	7,212	$	14,294

Weighted-average remaining lease term (excluding renewal options) - operating leases	49.1			49.9
Weighted-average remaining lease term (excluding renewal options) -finance leases	65.0			70.3
Weighted-average discount rate - operating leases	5.7		%	5.5		%
Weighted-average discount rate - finance leases	5.4		%	5.9		%