Leases (Tables)

3 Months Ended

Mar. 31, 2021

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 March 31,
	2021		2020
Fixed:
Cash rent	$	263,342	$	269,583
Straight-line rent	4,219		2,055
Lease intangible amortization	(1,547)		(748)
Property operating cost reimbursements	1,387		1,428
Sub-lease (1)	4,969		5,263
Total fixed	272,370		277,581
Variable (2)	17,806		20,815
Income from direct financing leases	133		190
Total rental revenue	$	290,309	$	298,586

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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 as of March 31, 2021 (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)
April 1, 2021 - December 31, 2021	$	772,883	$	1,501
2022	990,905		1,925
2023	929,394		1,565
2024	860,798		510
2025	756,324		169
2026	694,793		171
Thereafter	4,177,260		484
Total	$	9,182,357	$	6,325

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(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 March 31, 2021 (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)
April 1, 2021 - December 31, 2021	$	772,883	$	1,501
2022	990,905		1,925
2023	929,394		1,565
2024	860,798		510
2025	756,324		169
2026	694,793		171
Thereafter	4,177,260		484
Total	$	9,182,357	$	6,325

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(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 three months ended March 31, 2021 and 2020 (in thousands):

	Three Months Ended March 31,
	2021		2020
Operating lease cost (1)	$	5,750	$	7,575
Sublease income (2)	$	(4,969)	$	(5,263)

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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 March 31, 2021 (in thousands).

	Future Minimum Lease Payments
April 1, 2021 - December 31, 2021	$	16,140
2022	21,016
2023	20,601
2024	19,973
2025	19,659
2026	18,229
Thereafter	187,189
Total	302,807
Less: imputed interest	100,783
Total	$	202,024