Leases (Notes)

12 Months Ended

Dec. 31, 2019

Entire Note [Abstract]

Lessor, Operating Leases [Text Block]

19. Leases

Lessee accounting

Future minimum lease payments under non-cancellable leases as of the year ended December 31, 2019 where we are the lessee include:

Maturity of lease liabilities (in thousands)
	Operating Leases			Finance Leases			Total
2020	$	2,397		$	120		$	2,517
2021	2,446			120			2,566
2022	2,483			120			2,603
2023	2,572			120			2,692
2024	2,868			4,060			6,928
Thereafter	32,277			—			32,277
Total lease payments	$	45,043		$	4,540		$	49,583
Less: Imputed interest	(20,821		)	(459		)	(21,280		)
Present value of lease liabilities	$	24,222		$	4,081		$	28,303

ROU assets and lease liabilities for finance and operating leases as included in our Consolidated Financial Statements are as follows:

Lease asset and liabilities (in thousands)
Description	Financial Statement Classification	December 31, 2019		Description	Financial Statement Classification	December 31, 2018
Lease assets
Right-of-use asset obtained in exchange for new finance lease liabilities	Other asset, net	$	4,081	Capital lease asset	Land	$	4,098
Right-of-use asset obtained in exchange for new operating lease liabilities	Other asset, net	$	23,751	n/a
Right-of-use asset obtained relative to below market operating lease	Other asset, net	$	28,366	Below market Lease intangible asset	Other Asset, net	$	29,118
Lease liabilities
Finance lease liabilities	Other liabilities	$	4,081	Capital lease liabilities	Other Liabilities	$	4,098
Operating lease liabilities	Other liabilities	$	24,222	n/a

Lease expense for finance and operating leases as included in our Consolidated Financial Statements are as follows:

Lease expense (in thousands)		Year Ended
		December 31,
Description	Financial Statement Classification	2019
Finance lease expense
Amortization of right-of-use assets	Interest expense	$	17
Interest on lease liabilities	Interest expense	103
Operating lease cost	General and administrative expense, Property operating and maintenance	3,474
Variable lease cost	Property operating and maintenance	1,584
Total lease expense		$	5,178

		Year Ended
Description	Financial Statement Classification	December 31, 2018		December 31, 2017
Capital lease expense
Amortization of lease	Interest expense	$	16	$	—
Interest on lease liabilities	Interest expense	104		—
Operating lease expense	General and administrative expense, Property operating and maintenance	3,310		3,303
Below market ground lease amortization expense	Property operating and maintenance	821		1,017
Total lease expense		$	4,251	$	4,320

In June 2018, we acquired 50 percent of a land parcel that was previously subject to a ground lease at one of our California communities for $8.0 million. As a result of the transaction, we wrote off $1.1 million of the gross carrying amount of the ground lease intangible and $0.3 million of the related accumulated amortization. The $0.8 million net write off is included within the Property operating and maintenance expenses in our Consolidated Statements of Operations for the year ended December 31, 2018.

Lease term, discount rates and additional information for finance and operating leases are as follows:

Lease term and discount rate
	December 31, 2019
Weighted-average remaining lease terms (years)
Finance lease	4.50
Operating lease	27.15
Weighted-average discount rate
Finance lease	2.50	%
Operating lease	4.15	%

Other Information (in thousands)	Year Ended
	December 31, 2019		December 31, 2018		December 31, 2017
Cash paid for amounts included in the measurement of lease liabilities
Operating Cash Flow from Operating leases	$	2,199	$	3,340	$	3,182
Financing Cash Flow from Finance leases	120		120		121
Total Cash paid on lease liabilities	$	2,319	$	3,460	$	3,303

As of the year ended December 31, 2019, we have an additional executive office space operating lease for $2.9 million which will commence in January 2020 with a lease term of seven years.

Lessor Accounting

We are not the lessor for any finance leases as of December 31, 2019. Over 95 percent of our operating leases where we are the lessor are either month to month or for a time period not to exceed one year.  As of the reporting date, future minimum lease payments would not exceed twelve months. Similarly, over 95 percent of our investment property, net on the Consolidated Balance Sheets, and related depreciation amounts relate to assets whereby we are the lessor under an operating lease.

Lessee, Finance Leases [Text Block]

19. Leases

Lessee accounting

Future minimum lease payments under non-cancellable leases as of the year ended December 31, 2019 where we are the lessee include:

Maturity of lease liabilities (in thousands)
	Operating Leases			Finance Leases			Total
2020	$	2,397		$	120		$	2,517
2021	2,446			120			2,566
2022	2,483			120			2,603
2023	2,572			120			2,692
2024	2,868			4,060			6,928
Thereafter	32,277			—			32,277
Total lease payments	$	45,043		$	4,540		$	49,583
Less: Imputed interest	(20,821		)	(459		)	(21,280		)
Present value of lease liabilities	$	24,222		$	4,081		$	28,303

ROU assets and lease liabilities for finance and operating leases as included in our Consolidated Financial Statements are as follows:

Lease asset and liabilities (in thousands)
Description	Financial Statement Classification	December 31, 2019		Description	Financial Statement Classification	December 31, 2018
Lease assets
Right-of-use asset obtained in exchange for new finance lease liabilities	Other asset, net	$	4,081	Capital lease asset	Land	$	4,098
Right-of-use asset obtained in exchange for new operating lease liabilities	Other asset, net	$	23,751	n/a
Right-of-use asset obtained relative to below market operating lease	Other asset, net	$	28,366	Below market Lease intangible asset	Other Asset, net	$	29,118
Lease liabilities
Finance lease liabilities	Other liabilities	$	4,081	Capital lease liabilities	Other Liabilities	$	4,098
Operating lease liabilities	Other liabilities	$	24,222	n/a

Lease expense for finance and operating leases as included in our Consolidated Financial Statements are as follows:

Lease expense (in thousands)		Year Ended
		December 31,
Description	Financial Statement Classification	2019
Finance lease expense
Amortization of right-of-use assets	Interest expense	$	17
Interest on lease liabilities	Interest expense	103
Operating lease cost	General and administrative expense, Property operating and maintenance	3,474
Variable lease cost	Property operating and maintenance	1,584
Total lease expense		$	5,178

		Year Ended
Description	Financial Statement Classification	December 31, 2018		December 31, 2017
Capital lease expense
Amortization of lease	Interest expense	$	16	$	—
Interest on lease liabilities	Interest expense	104		—
Operating lease expense	General and administrative expense, Property operating and maintenance	3,310		3,303
Below market ground lease amortization expense	Property operating and maintenance	821		1,017
Total lease expense		$	4,251	$	4,320

In June 2018, we acquired 50 percent of a land parcel that was previously subject to a ground lease at one of our California communities for $8.0 million. As a result of the transaction, we wrote off $1.1 million of the gross carrying amount of the ground lease intangible and $0.3 million of the related accumulated amortization. The $0.8 million net write off is included within the Property operating and maintenance expenses in our Consolidated Statements of Operations for the year ended December 31, 2018.

Lease term, discount rates and additional information for finance and operating leases are as follows:

Lease term and discount rate
	December 31, 2019
Weighted-average remaining lease terms (years)
Finance lease	4.50
Operating lease	27.15
Weighted-average discount rate
Finance lease	2.50	%
Operating lease	4.15	%

Other Information (in thousands)	Year Ended
	December 31, 2019		December 31, 2018		December 31, 2017
Cash paid for amounts included in the measurement of lease liabilities
Operating Cash Flow from Operating leases	$	2,199	$	3,340	$	3,182
Financing Cash Flow from Finance leases	120		120		121
Total Cash paid on lease liabilities	$	2,319	$	3,460	$	3,303

As of the year ended December 31, 2019, we have an additional executive office space operating lease for $2.9 million which will commence in January 2020 with a lease term of seven years.

Lessor Accounting

We are not the lessor for any finance leases as of December 31, 2019. Over 95 percent of our operating leases where we are the lessor are either month to month or for a time period not to exceed one year.  As of the reporting date, future minimum lease payments would not exceed twelve months. Similarly, over 95 percent of our investment property, net on the Consolidated Balance Sheets, and related depreciation amounts relate to assets whereby we are the lessor under an operating lease.

Lessee, Operating Leases [Text Block]

19. Leases

Lessee accounting

Future minimum lease payments under non-cancellable leases as of the year ended December 31, 2019 where we are the lessee include:

Maturity of lease liabilities (in thousands)
	Operating Leases			Finance Leases			Total
2020	$	2,397		$	120		$	2,517
2021	2,446			120			2,566
2022	2,483			120			2,603
2023	2,572			120			2,692
2024	2,868			4,060			6,928
Thereafter	32,277			—			32,277
Total lease payments	$	45,043		$	4,540		$	49,583
Less: Imputed interest	(20,821		)	(459		)	(21,280		)
Present value of lease liabilities	$	24,222		$	4,081		$	28,303

ROU assets and lease liabilities for finance and operating leases as included in our Consolidated Financial Statements are as follows:

Lease asset and liabilities (in thousands)
Description	Financial Statement Classification	December 31, 2019		Description	Financial Statement Classification	December 31, 2018
Lease assets
Right-of-use asset obtained in exchange for new finance lease liabilities	Other asset, net	$	4,081	Capital lease asset	Land	$	4,098
Right-of-use asset obtained in exchange for new operating lease liabilities	Other asset, net	$	23,751	n/a
Right-of-use asset obtained relative to below market operating lease	Other asset, net	$	28,366	Below market Lease intangible asset	Other Asset, net	$	29,118
Lease liabilities
Finance lease liabilities	Other liabilities	$	4,081	Capital lease liabilities	Other Liabilities	$	4,098
Operating lease liabilities	Other liabilities	$	24,222	n/a

Lease expense for finance and operating leases as included in our Consolidated Financial Statements are as follows:

Lease expense (in thousands)		Year Ended
		December 31,
Description	Financial Statement Classification	2019
Finance lease expense
Amortization of right-of-use assets	Interest expense	$	17
Interest on lease liabilities	Interest expense	103
Operating lease cost	General and administrative expense, Property operating and maintenance	3,474
Variable lease cost	Property operating and maintenance	1,584
Total lease expense		$	5,178

		Year Ended
Description	Financial Statement Classification	December 31, 2018		December 31, 2017
Capital lease expense
Amortization of lease	Interest expense	$	16	$	—
Interest on lease liabilities	Interest expense	104		—
Operating lease expense	General and administrative expense, Property operating and maintenance	3,310		3,303
Below market ground lease amortization expense	Property operating and maintenance	821		1,017
Total lease expense		$	4,251	$	4,320

In June 2018, we acquired 50 percent of a land parcel that was previously subject to a ground lease at one of our California communities for $8.0 million. As a result of the transaction, we wrote off $1.1 million of the gross carrying amount of the ground lease intangible and $0.3 million of the related accumulated amortization. The $0.8 million net write off is included within the Property operating and maintenance expenses in our Consolidated Statements of Operations for the year ended December 31, 2018.

Lease term, discount rates and additional information for finance and operating leases are as follows:

Lease term and discount rate
	December 31, 2019
Weighted-average remaining lease terms (years)
Finance lease	4.50
Operating lease	27.15
Weighted-average discount rate
Finance lease	2.50	%
Operating lease	4.15	%

Other Information (in thousands)	Year Ended
	December 31, 2019		December 31, 2018		December 31, 2017
Cash paid for amounts included in the measurement of lease liabilities
Operating Cash Flow from Operating leases	$	2,199	$	3,340	$	3,182
Financing Cash Flow from Finance leases	120		120		121
Total Cash paid on lease liabilities	$	2,319	$	3,460	$	3,303

As of the year ended December 31, 2019, we have an additional executive office space operating lease for $2.9 million which will commence in January 2020 with a lease term of seven years.

Lessor Accounting

We are not the lessor for any finance leases as of December 31, 2019. Over 95 percent of our operating leases where we are the lessor are either month to month or for a time period not to exceed one year.  As of the reporting date, future minimum lease payments would not exceed twelve months. Similarly, over 95 percent of our investment property, net on the Consolidated Balance Sheets, and related depreciation amounts relate to assets whereby we are the lessor under an operating lease.