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Leases (Tables)
 9 Months Ended
Sep. 30, 2020
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 September 30,Nine Months Ended September 30,
2020201920202019
Fixed:
Cash rent (1)
$255,996 $272,032 $778,697 $831,931 
Straight-line rent (2)
12,595 5,470 18,053 20,925 
Lease intangible amortization
(393)(692)(1,929)(2,034)
Property operating cost reimbursements
1,581 1,418 4,372 4,304 
Sub-lease (3)
5,175 5,328 15,718 16,099 
Total fixed
274,954 283,556 814,911 871,225 
Variable (4)
18,585 19,219 55,438 60,008 
Income from direct financing leases
153 210 505 638 
Total rental revenue
$293,692 $302,985 $870,854 $931,871 
____________________________________
(1)For the three and nine months ended September 30, 2020, the Company had $3.9 million and $16.7 million, respectively, of rental revenue related to deferral agreements executed through October 23, 2020, which qualify for the COVID-19 Lease Concessions Relief. For the three and nine months ended September 30, 2020, cash rent was negatively impacted by (i) $6.5 million and $17.7 million, respectively, of abated rental revenue pursuant to lease amendments executed through September 30, 2020, which increased the weighted average lease term for the related properties and (ii) a reduction to rental revenue of $9.2 million and $13.9 million, respectively, that was related to the impact of the COVID-19 pandemic, of which $5.1 million and $6.0 million, respectively, represented an increase to the general allowance for rental revenue that the Company believes it may abate as a result of lease amendments and $4.1 million and $7.9 million, respectively, represented amounts not probable of collection at September 30, 2020 and rental revenue will be recognized as cash is received.
(2)For the three and nine months ended September 30, 2020, straight-line rent was reduced by $1.0 million and $4.7 million, respectively, that was related to the impact of the COVID-19 pandemic, for straight-line rent receivables that were deemed not probable of collection.
(3)The Company’s tenants are generally sub-tenants under certain ground leases and are responsible for paying the rent under these leases.
(4)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 as of September 30, 2020 (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)
October 1, 2020 - December 31, 2020$257,995 $534 
20211,029,882 2,014 
2022975,313 1,925 
2023911,354 1,565 
2024839,902 510 
2025735,684 169 
Thereafter
4,515,176 655 
Total
$9,265,306 $7,372 
____________________________________
(1)Related to 19 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 as of September 30, 2020 (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)
October 1, 2020 - December 31, 2020$257,995 $534 
20211,029,882 2,014 
2022975,313 1,925 
2023911,354 1,565 
2024839,902 510 
2025735,684 169 
Thereafter
4,515,176 655 
Total
$9,265,306 $7,372 
____________________________________
(1)Related to 19 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 nine months ended September 30, 2020 and 2019 (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Operating lease cost (1)
$5,933 $5,794 $19,643 $18,190 
Sublease income (2)
$(5,175)$(5,328)$(15,718)$(16,099)
___________________________________
(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 September 30, 2020 (in thousands).
Future Minimum Lease Payments
October 1, 2020 - December 31, 2020$5,459 
202122,173 
202222,055 
202321,620 
202421,015 
202520,594 
Thereafter208,598 
Total
321,514 
Less: imputed interest
107,412 
Total
$214,102