Leases (Tables)

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Components of Sales-type Leases

The table below presents the components of sale-type leases for the three and nine months ended September 30, 2020:

	SALES-TYPE LEASES
In thousands	three months ended September 30, 2020		nine months ended September 30, 2020
Profit recognized at commencement date	$	—	$	68,267	Gain on sales of real estate assets
Interest income	1,454		3,007		Rental income

Future Minimum Operating Lease Payments Receivable

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

In thousands	Operating
2020	$	93,722
2021	352,341
2022	307,166
2023	261,187
2024	200,578
2025 and thereafter	555,264
	$	1,770,258

Future Minimum Operating Lease Payments

The Company’s future lease payments (primarily for its 61 non-prepaid ground leases) as of September 30, 2020 were as follows:

In thousands	OPERATING		FINANCING
2020	$	1,008	$	143
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	328,274		92,272
Discount	(236,808)		(73,575)
Lease liabilities	$	91,466	$	18,697

Future Minimum Financing Lease Payments

The Company’s future lease payments (primarily for its 61 non-prepaid ground leases) as of September 30, 2020 were as follows:

In thousands	OPERATING		FINANCING
2020	$	1,008	$	143
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	328,274		92,272
Discount	(236,808)		(73,575)
Lease liabilities	$	91,466	$	18,697

Lease Cost

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

	THREE MONTHS ENDED September 30,						NINE MONTHS ENDED September 30,
In thousands	2020			2019			2020		2019
Operating lease cost
Operating lease expense	$	1,180		$	1,169		$	3,534	$	3,448
Variable lease expense	1,066			845			2,664		2,380
Finance lease cost
Amortization of right-of-use assets	88			51			236		101
Interest on lease liabilities	245			196			722		392
Total lease expense	$	2,579		$	2,261		$	7,156	$	6,321
Other information
Operating cash flows outflows related to operating leases	$	1,440		$	1,313		$	5,412	$	5,461
Financing cash flows outflows related to financing leases	$	143		$	107		$	3,310	$	249
Right-of-use assets obtained in exchange for new finance lease liabilities	$	—		$	—		$	7,212	$	14,294
Weighted-average remaining lease term (excluding renewal options) - operating leases	48.9			49.7
Weighted-average remaining lease term (excluding renewal options) -finance leases	64.7			70.1
Weighted-average discount rate - operating leases	5.7		%	5.7		%
Weighted-average discount rate - finance leases	5.4		%	5.5		%