Leases

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

LEASES

LEASES

At March 31, 2019, the Company had three properties subject to operating ground leases with a weighted average remaining term of 74 years and two finance ground leases with a weighted average remaining term of five years. At March 31, 2019, the Company had right-of-use assets of $68.1 million included in operating properties, projects under development, or land on the condensed consolidated balance sheets and a lease liability of $68.0 million included in other liabilities on the condensed consolidated balance sheets. The weighted average discount rate at March 31, 2019 was 4.50%, which represents the Company's incremental borrowing rate related to the ground lease assets.

Rental payments on these ground leases are adjusted periodically based on either the Consumer Price Index, changes in developed square feet on the underlying leased asset, or on a pre-determined schedule. The monthly payments on a pre-determined schedule are recognized on a straight-line basis over the terms of the respective leases while payments resulting from changes in the Consumer Price Index or future development are not estimated as part of our measurement of straight-line rental expense.

For the three months endedMarch 31, 2019, the Company recognized $839,000 of operating ground lease expense, of which no amounts represented variable lease expenses, and $116,000 of interest expense related to finance ground leases. For the three months endedMarch 31, 2019, $393,000 was paid in cash for operating ground leases and no cash payments were made for financing ground leases. At March 31, 2019 and December 31, 2018, respectively, the future minimum payments to be made by consolidated entities for ground leases are as follows (in thousands):

March 31, 2019
	Operating Ground Leases			Finance Ground Leases
2019	$	1,831		$	462
2020	2,460			462
2021	2,497			6,562
2022	2,497			162
2023	2,497			162
Thereafter	202,603			3,838
	$	214,385		$	11,648
Discount	(156,270		)	(1,803		)
Lease liability	$	58,115		$	9,845

December 31, 2018
	Operating Ground Leases			Finance Ground Leases
2019	$	2,441		$	462
2020	2,460			462
2021	2,497			6,562
2022	2,497			162
2023	2,497			162
Thereafter	202,603			3,838
	$	214,995		$	11,648
Discount	(156,867		)	(1,918		)
Lease liability	$	58,128		$	9,730

LEASES

LEASES

At March 31, 2019, the Company had three properties subject to operating ground leases with a weighted average remaining term of 74 years and two finance ground leases with a weighted average remaining term of five years. At March 31, 2019, the Company had right-of-use assets of $68.1 million included in operating properties, projects under development, or land on the condensed consolidated balance sheets and a lease liability of $68.0 million included in other liabilities on the condensed consolidated balance sheets. The weighted average discount rate at March 31, 2019 was 4.50%, which represents the Company's incremental borrowing rate related to the ground lease assets.

Rental payments on these ground leases are adjusted periodically based on either the Consumer Price Index, changes in developed square feet on the underlying leased asset, or on a pre-determined schedule. The monthly payments on a pre-determined schedule are recognized on a straight-line basis over the terms of the respective leases while payments resulting from changes in the Consumer Price Index or future development are not estimated as part of our measurement of straight-line rental expense.

For the three months endedMarch 31, 2019, the Company recognized $839,000 of operating ground lease expense, of which no amounts represented variable lease expenses, and $116,000 of interest expense related to finance ground leases. For the three months endedMarch 31, 2019, $393,000 was paid in cash for operating ground leases and no cash payments were made for financing ground leases. At March 31, 2019 and December 31, 2018, respectively, the future minimum payments to be made by consolidated entities for ground leases are as follows (in thousands):

March 31, 2019
	Operating Ground Leases			Finance Ground Leases
2019	$	1,831		$	462
2020	2,460			462
2021	2,497			6,562
2022	2,497			162
2023	2,497			162
Thereafter	202,603			3,838
	$	214,385		$	11,648
Discount	(156,270		)	(1,803		)
Lease liability	$	58,115		$	9,845

December 31, 2018
	Operating Ground Leases			Finance Ground Leases
2019	$	2,441		$	462
2020	2,460			462
2021	2,497			6,562
2022	2,497			162
2023	2,497			162
Thereafter	202,603			3,838
	$	214,995		$	11,648
Discount	(156,867		)	(1,918		)
Lease liability	$	58,128		$	9,730