Leases (Tables)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Lease Income

The components of rental revenue from the Company’s operating and direct financing leases were as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Fixed:
Cash rent	$	277,324		$	279,662		$	559,899		$	560,550
Straight-line rent	8,043			11,422			15,455			22,387
Lease intangible amortization	(611		)	(688		)	(1,342		)	(2,175		)
Sub-lease (1)	5,282			4,080			10,771			8,009
Total fixed	290,038			294,476			584,783			588,771
Variable (2)	21,794			20,943			43,675			41,457
Income from direct financing leases	211			245			428			510
Total rental revenue	$	312,043		$	315,664		$	628,886		$	630,738

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(1) The Company’s tenants are generally sub-tenants under certain ground leases and are responsible for paying the rent under these leases.

(2)

Includes costs reimbursed related to property operating expenses, common area maintenance and percentage rent, including these costs reimbursed by ground lease sub-tenants.

Lessor, Operating Lease Payments Receivable

The following table presents future minimum operating lease payments due to the Company over the next five years and thereafter (in thousands). These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes.

	Future Minimum Operating Lease Payments		Future Minimum Direct Financing Lease Payments (1)
July 1, 2019 - December 31, 2019	$	517,007	$	1,209
2020	1,067,012		2,215
2021	1,031,450		2,095
2022	961,627		2,006
2023	881,681		1,622
Thereafter	5,320,409		788
Total	$	9,779,186	$	9,935

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(1)

Related to 24 properties which are subject to direct financing leases and, therefore, revenue is recognized as rental income on the discounted cash flows of the lease payments. Amounts reflect undiscounted cash flows to be received by the Company under the lease agreements on these respective properties.

Lessor, Direct Financing Leases Maturities

The following table presents future minimum operating lease payments due to the Company over the next five years and thereafter (in thousands). These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes.

	Future Minimum Operating Lease Payments		Future Minimum Direct Financing Lease Payments (1)
July 1, 2019 - December 31, 2019	$	517,007	$	1,209
2020	1,067,012		2,215
2021	1,031,450		2,095
2022	961,627		2,006
2023	881,681		1,622
Thereafter	5,320,409		788
Total	$	9,779,186	$	9,935

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(1)

Related to 24 properties which are subject to direct financing leases and, therefore, revenue is recognized as rental income on the discounted cash flows of the lease payments. Amounts reflect undiscounted cash flows to be received by the Company under the lease agreements on these respective properties.

Lease Cost

The following table presents the lease expense components for the three and six months ended June 30, 2019 (in thousands):

	Three Months Ended June 30, 2019			Six Months Ended June 30, 2019
Operating lease cost (1)	$	5,418		$	12,396
Sublease income (2)	$	(5,282	)	$	(10,771	)

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(1) No cash paid for operating lease liabilities was capitalized.

(2)

The Company’s tenants are generally sub-tenants under certain ground leases and are responsible for paying the rent under these leases.

Lessee, Operating Lease Maturities

The following table reflects the future minimum lease payments due from the Company over the next five years and thereafter for ground lease obligations, which are substantially reimbursable by our tenants, and office lease obligations as of June 30, 2019 (in thousands).

	Future Minimum Lease Payments
July 1, 2019 - December 31, 2019	$	11,031
2020	23,022
2021	22,708
2022	22,541
2023	21,280
Thereafter	244,406
Total	344,988
Less: imputed interest	119,016
Total	$	225,972

Lessee, Future Minimum Rental Payments

The following table reflects the future minimum lease payments due from the Company over the five years subsequent to December 31, 2018, as disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 (in thousands), which excluded certain ground leases under which the Company's sub-tenants are responsible for paying the rent under these leases directly to the ground lessor.

	Future Minimum Lease Payments
2019	$	18,479
2020	18,191
2021	17,929
2022	18,118
2023	17,772
Thereafter	196,670
Total	$	287,159