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Leases
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Leases
7.
Leases

Lessor Accounting

The Company is the lessor for its residential and non-residential leases and these leases are accounted for as operating leases under the lease standard.

The following table presents the lease income types relating to lease payments for residential and non-residential leases along with the total other rental income for the six months ended June 30, 2024 and 2023 (amounts in thousands):

 

 

 

Six Months Ended June 30, 2024

 

 

Six Months Ended June 30, 2023

 

Income Type

 

Residential
Leases

 

 

Non-Residential
Leases

 

 

Total

 

 

Residential
Leases

 

 

Non-Residential
Leases

 

 

Total

 

Residential and non-residential rent

 

$

1,308,397

 

 

$

33,710

 

 

$

1,342,107

 

 

$

1,276,338

 

 

$

31,973

 

 

$

1,308,311

 

Utility recoveries (RUBS income) (1)

 

 

45,456

 

 

 

435

 

 

 

45,891

 

 

 

42,786

 

 

 

419

 

 

 

43,205

 

Parking rent

 

 

23,035

 

 

 

633

 

 

 

23,668

 

 

 

21,893

 

 

 

225

 

 

 

22,118

 

Other lease revenue (2)

 

 

(10,732

)

 

 

(481

)

 

 

(11,213

)

 

 

(13,420

)

 

 

734

 

 

 

(12,686

)

Total lease revenue

 

$

1,366,156

 

 

$

34,297

 

 

 

1,400,453

 

 

$

1,327,597

 

 

$

33,351

 

 

 

1,360,948

 

Parking revenue

 

 

 

 

 

 

 

 

21,715

 

 

 

 

 

 

 

 

 

20,395

 

Other revenue

 

 

 

 

 

 

 

 

42,813

 

 

 

 

 

 

 

 

 

41,054

 

Total other rental income (3)

 

 

 

 

 

 

 

 

64,528

 

 

 

 

 

 

 

 

 

61,449

 

Rental income

 

 

 

 

 

 

 

$

1,464,981

 

 

 

 

 

 

 

 

$

1,422,397

 

 

(1)
RUBS income primarily consists of variable payments representing the recovery of utility costs from residents.
(2)
Other lease revenue consists of the revenue adjustment related to bad debt (see below for further discussion) and other miscellaneous lease revenue.
(3)
Other rental income is accounted for under the revenue recognition standard and primarily consists of third-party transient parking revenue and ancillary income such as cable and laundry revenue.

The following table presents the lease income types relating to lease payments for residential and non-residential leases along with the total other rental income for the quarters ended June 30, 2024 and 2023 (amounts in thousands):

 

 

 

Quarter Ended June 30, 2024

 

 

Quarter Ended June 30, 2023

 

Income Type

 

Residential
Leases

 

 

Non-Residential
Leases

 

 

Total

 

 

Residential
Leases

 

 

Non-Residential
Leases

 

 

Total

 

Residential and non-residential rent

 

$

656,036

 

 

$

14,887

 

 

$

670,923

 

 

$

641,586

 

 

$

15,987

 

 

$

657,573

 

Utility recoveries (RUBS income) (1)

 

 

22,787

 

 

 

208

 

 

 

22,995

 

 

 

21,403

 

 

 

212

 

 

 

21,615

 

Parking rent

 

 

11,611

 

 

 

413

 

 

 

12,024

 

 

 

11,011

 

 

 

116

 

 

 

11,127

 

Other lease revenue (2)

 

 

(4,787

)

 

 

(389

)

 

 

(5,176

)

 

 

(5,831

)

 

 

65

 

 

 

(5,766

)

Total lease revenue

 

$

685,647

 

 

$

15,119

 

 

 

700,766

 

 

$

668,169

 

 

$

16,380

 

 

 

684,549

 

Parking revenue

 

 

 

 

 

 

 

 

11,037

 

 

 

 

 

 

 

 

 

10,192

 

Other revenue

 

 

 

 

 

 

 

 

22,360

 

 

 

 

 

 

 

 

 

22,568

 

Total other rental income (3)

 

 

 

 

 

 

 

 

33,397

 

 

 

 

 

 

 

 

 

32,760

 

Rental income

 

 

 

 

 

 

 

$

734,163

 

 

 

 

 

 

 

 

$

717,309

 

 

(1)
RUBS income primarily consists of variable payments representing the recovery of utility costs from residents.
(2)
Other lease revenue consists of the revenue adjustment related to bad debt (see below for further discussion) and other miscellaneous lease revenue.
(3)
Other rental income is accounted for under the revenue recognition standard and primarily consists of third-party transient parking revenue and ancillary income such as cable and laundry revenue.

The following table presents residential accounts receivable and straight-line receivable balances for the Company’s properties as of June 30, 2024 and December 31, 2023 (amounts in thousands):

 

Balance Sheet (Other assets):

 

June 30, 2024

 

 

December 31, 2023

 

Residential accounts receivable balances

 

$

16,657

 

 

$

21,477

 

Allowance for doubtful accounts

 

 

(11,380

)

 

 

(15,846

)

Net receivable balances

 

$

5,277

 

 

$

5,631

 

 

 

 

 

 

 

Straight-line receivable balances

 

$

7,893

 

 

$

9,183

 

 

The following table presents residential bad debt for the Company’s properties for the six months and quarters ended June 30, 2024 and 2023 (amounts in thousands):

 

 

Six Months Ended June 30,

 

 

Quarter Ended June 30,

 

Income Statement (Rental income):

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Bad debt, net (1)

 

$

17,139

 

 

$

19,820

 

 

$

7,924

 

 

$

9,065

 

% of residential rental income

 

 

1.2

%

 

 

1.4

%

 

 

1.1

%

 

 

1.3

%

 

(1)
Bad debt, net benefited from additional resident payments due to governmental rental assistance programs of approximately $0.9 million and $1.9 million for the six months ended June 30, 2024 and 2023, respectively, and $0.4 million and $0.7 million for the quarters ended June 30, 2024 and 2023, respectively.