Leases (Tables)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Lease Income

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

	Year Ended December 31,
	2020		2019		2018
Fixed:
Cash rent (1)	$	1,036,422	$	1,102,538	$	1,121,482
Straight-line rent (2)	25,161		28,032		39,772
Lease intangible amortization	(3,357)		(2,538)		(4,178)
Property operating cost reimbursements	5,866		5,559		5,375
Sub-lease (3)	20,141		21,496		16,178
Total fixed	1,084,233		1,155,087		1,178,629
Variable (4)	73,404		81,310		78,179
Income from direct financing leases	648		837		1,059
Total rental revenue	$	1,158,285	$	1,237,234	$	1,257,867

____________________________________

(1)For the year ended December 31, 2020, the Company had $17.9 million of rental revenue related to deferral agreements executed through February 16, 2021, which qualify for the COVID-19 Lease Concessions Relief. For the year ended December 31, 2020, cash rent was negatively impacted by (i) $18.3 million of abated rental revenue pursuant to lease amendments executed through December 31, 2020, which increased the weighted average lease term for the related properties and (ii) a reduction to rental revenue of $23.0 million that was related to the impact of the COVID-19 pandemic, of which $9.6 million represented an increase to the general allowance for rental revenue and $13.4 million represented amounts not probable of collection at December 31, 2020 and rental revenue will be recognized as cash is received.

(2)For the year ended December 31, 2020, straight-line rent was reduced by $3.5 million 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 December 31, 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)
2021	$	1,043,236	$	2,000
2022	992,411		1,925
2023	927,738		1,565
2024	856,646		510
2025	752,049		169
Thereafter	4,728,485		655
Total	$	9,300,565	$	6,824

____________________________________

(1)Related to 18 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 December 31, 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)
2021	$	1,043,236	$	2,000
2022	992,411		1,925
2023	927,738		1,565
2024	856,646		510
2025	752,049		169
Thereafter	4,728,485		655
Total	$	9,300,565	$	6,824

____________________________________

(1)Related to 18 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 years ended December 31, 2020 and 2019 (in thousands):

	Year Ended December 31,
	2020		2019
Operating lease cost (1)	$	24,259	$	24,392
Sublease income (2)	$	(20,141)	$	(21,496)

___________________________________

(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 December 31, 2020 (in thousands).

	Future Minimum Lease Payments
2021	$	22,420
2022	21,709
2023	21,300
2024	20,656
2025	20,213
Thereafter	206,752
Total	313,050
Less: imputed interest	103,946
Total	$	209,104

The following table reflects the future minimum lease payments due from the Company over the five years subsequent to December 31, 2019 (in thousands).

	Future Minimum Lease Payments
2020	$	22,287
2021	22,284
2022	22,122
2023	21,695
2024	21,132
Thereafter	225,457
Total	$	334,977
Less: imputed interest	113,916
Total	$	221,061