Leases (Tables)

9 Months Ended

Sep. 30, 2019

Leases, Capital [Abstract]

Schedule of Company's Lease Income

The following table summarizes the Company’s lease income (dollars in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Fixed income from operating leases	$	255,447	$	246,148	$	730,277	$	772,388
Variable income from operating leases	57,153		57,706		177,742		166,058
Interest income from direct financing leases	9,590		13,573		33,304		40,329

The following table summarizes the activity of the DFL Sale Portfolio during the periods presented (dollars in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Income from DFLs	$	5,412	$	5,868	$	17,287	$	17,420
Cash payments received	5,412		5,634		16,005		15,118

Schedule of Components of Net Investment in DFLs

Net investment in DFLs consists of the following (dollars in thousands):

	September 30, 2019
Present value of minimum lease payments receivable	$	23,316
Present value of estimated residual value	84,604
Less deferred selling profits	(23,316		)
Net investment in direct financing leases before allowance	84,604
Allowance for direct financing lease losses	—
Net investment in direct financing leases	$	84,604
Properties subject to direct financing leases	2

	December 31, 2018
Minimum lease payments receivable	$	1,013,976
Estimated residual value	507,484
Less unearned income	(807,642		)
Net investment in direct financing leases	$	713,818
Properties subject to direct financing leases	29

Schedule of Future Minimum Lease Payments Contractually Due Under DFLs

The following table summarizes future minimum lease payments contractually due under DFLs at September 30, 2019 (in thousands):

Year	Amount
2019 (three months)	$	4,177
2020	9,554
2021	8,409
2022	1,176
2023	—
2024	—
Thereafter	—
Undiscounted minimum lease payments receivable	23,316
Less: imputed interest	—
Present value of minimum lease payments receivable	$	23,316

The following table summarizes future minimum lease payments contractually due under DFLs at December 31, 2018 (in thousands):

Year	Amount
2019	$	114,970
2020	63,308
2021	63,687
2022	58,135
2023	58,570
Thereafter	655,306
	$	1,013,976

Summary of the Company's Internal Ratings for DFLs

The following table summarizes the Company’s internal ratings for DFLs at September 30, 2019 (dollars in thousands):

	Carrying Amount		Percentage of DFL Portfolio	Internal Ratings
Segment				Performing DFLs		Watch List DFLs		Workout DFLs
Other non-reportable segments	$	84,604	100	$	84,604	—		—
	$	84,604	100	$	84,604	$	—	$	—

Loans Receivable Internal Ratings

The following table summarizes the Company’s internal ratings for loans receivable at September 30, 2019 (dollars in thousands):

	Carrying Amount		Percentage of Loan Portfolio	Internal Ratings
Investment Type				Performing Loans		Watch List Loans		Workout Loans
Real estate secured	$	111,942	81	$	111,942	$	—	$	—
Other secured	25,677		19	25,677		—		—
	$	137,619	100	$	137,619	$	—	$	—

Schedule of Future Minimum Lease Payments Due Under Operating Leases

The following table summarizes future minimum lease payments to be received, excluding operating expense reimbursements, from tenants under non-cancelable operating leases as of September 30, 2019 (in thousands):

Year	Amount
2019 (three months)	$	247,606
2020	996,835
2021	958,669
2022	860,278
2023	782,443
2024	683,528
Thereafter	2,353,307
	$	6,882,666

The following table summarizes future minimum lease payments to be received, excluding operating expense reimbursements, from tenants under non-cancelable operating leases as of December 31, 2018 (in thousands):

Year	Amount
2019	$	971,417
2020	928,102
2021	853,451
2022	751,972
2023	675,537
Thereafter	2,320,847
	$	6,501,326

Schedule of Other Lease Information

The following tables provide information regarding the Company’s leases to which it is the lessee, such as corporate offices and ground leases (dollars in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
Lease Expense Information:	2019		2018		2019		2018
Total lease expense(1)	$	4,343	$	3,947	$	12,764	$	11,351

_______________________________________

(1) Lease expense related to corporate assets is included in general and administrative expenses and lease expense related to ground leases is included within operating expenses in the Company’s consolidated statements of operations.

	Nine Months Ended September 30,
Supplemental Cash Flow Information:	2019		2018
Cash paid for amounts included in the measurement of lease liability:
Operating cash flows for operating leases	$	10,134	$	9,132
ROU asset obtained in exchange for new lease liability:
Operating leases	$	4,084	$	—

Weighted Average Lease Term and Discount Rate:	September 30, 2019
Weighted average remaining lease term (years):
Operating leases	51
Weighted average discount rate:
Operating leases	4.36	%

Schedule of Future Minimum Lease Obligations, 842

The following table summarizes future minimum lease payments under non-cancelable ground and other operating leases included in the Company’s lease liability as of September 30, 2019 (in thousands):

Year	Amount
2019 (three months)	$	2,391
2020	9,322
2021	8,958
2022	8,770
2023	8,542
2024	6,798
Thereafter	451,675
Undiscounted minimum lease payments included in the lease liability	496,456
Less: imputed interest	(340,159		)
Present value of lease liability	$	156,297

Schedule of Future Minimum Lease Obligations, 840

The following table summarizes future minimum lease obligations under non-cancelable ground and other operating leases as of December 31, 2018 (in thousands):

Year	Amount
2019	$	5,597
2020	5,687
2021	5,776
2022	5,862
2023	5,983
Thereafter	466,130
	$	495,035