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Land, Buildings and Improvements and Assets Held for Sale (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of Land, Building and Improvements

Land and buildings leased to others, which are subject to operating leases, and real estate under construction, are summarized as follows (in thousands):



	June 30, 2019			December 31, 2018
Land	$	1,830,922		$	1,772,099
Buildings and improvements	7,409,650			6,945,513
Real estate under construction	50,441			63,114
Less: Accumulated depreciation	(836,360		)	(724,550		)
	$	8,454,653		$	8,056,176

Below is a summary of our Land, buildings and improvements attributable to operating properties (in thousands):



	June 30, 2019			December 31, 2018
Land	$	39,675		$	102,478
Buildings and improvements	149,618			363,572
Real estate under construction	—			4,620
Less: Accumulated depreciation	(11,179		)	(10,234		)
	$	178,114		$	460,436

Operating Lease Income

Lease income related to operating leases recognized and included in the consolidated statements of income is as follows (in thousands):



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Lease income — fixed	$	222,057	$	437,175
Lease income — variable ^(a)	22,277		43,539
Total operating lease income ^(b)	$	244,334	$	480,714

__________


(a)	Includes (i) rent increases based on changes in the CPI and other comparable indices and (ii) reimbursements for property taxes, insurance, and common area maintenance services.

(b)

Excludes $25.4 million and $52.0 million for the three and six months ended June 30, 2019, respectively, of interest income from direct financing leases that is included in Lease revenues in the consolidated statement of income.

Scheduled Future Minimum Lease Payments to be Received

Scheduled future lease payments to be received (exclusive of expenses paid by tenants, percentage of sales rents, and future CPI-based adjustments) under non-cancelable operating leases at June 30, 2019 are as follows (in thousands):



Years Ending December 31,	Total
2019 (remainder)	$	487,439
2020	967,832
2021	947,374
2022	911,914
2023	868,384
Thereafter	7,064,545
Total	$	11,247,488

Scheduled Future Minimum Lease Payments to be Received - Before Adoption



Years Ending December 31,	Total
2019	$	920,044
2020	915,411
2021	896,083
2022	861,688
2023	802,509
Thereafter	6,151,480
Total	$	10,547,215

Lease Cost

Certain information related to the total lease cost for operating leases is as follows (in thousands):



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Fixed lease cost	$	3,820	$	7,636
Variable lease cost	213		363
Total lease cost	$	4,033	$	7,999

Supplemental Balance Sheet Information

Supplemental balance sheet information related to ROU assets and lease liabilities is as follows (dollars in thousands):



	Location on Consolidated Balance Sheets	June 30, 2019
Operating ROU assets — land leases	In-place lease intangible assets and other	$	114,523
Operating ROU assets — office leases	Other assets, net	10,110
Total operating ROU assets		$	124,633

Operating lease liabilities	Accounts payable, accrued expenses and other liabilities	$	90,580

Weighted-average remaining lease term — operating leases		37.3 years
Weighted-average discount rate — operating leases		7.8		%
Number of land lease arrangements		64
Number of office space arrangements		6
Lease term range (excluding extension options not reasonably certain of being exercised)		1 – 100 years

Undiscounted Cash Flows - Operating Lease

A reconciliation of the undiscounted cash flows for operating leases recorded on the consolidated balance sheet within Accounts payable, accrued expenses and other liabilities as of June 30, 2019 is as follows (in thousands):



Years Ending December 31,	Total
2019 (remainder)	$	7,194
2020	14,980
2021	8,483
2022	7,628
2023	7,481
Thereafter	257,076
Total lease payments	302,842
Less: amount of lease payments representing interest	(212,262		)
Present value of future lease payments/lease obligations	$	90,580

Disclosure of Long Lived Assets Held-for-sale

Below is a summary of our properties held for sale (in thousands):



	June 30, 2019			December 31, 2018
Land, buildings and improvements	$	105,590		$	—
Accumulated depreciation and amortization	(2,813		)	—
Assets held for sale, net	$	102,777		$	—