Leases

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Leases

Leases

Lease Income

The following table summarizes the Company’s lease income, excluding discontinued operations (in thousands):

	Three Months Ended March 31,
	2022		2021
Fixed income from operating leases	$	287,292	$	262,937
Variable income from operating leases	82,858		65,035
Interest income from direct financing leases	1,168		2,163

Direct Financing Leases

2022 Direct Financing Lease Sale

During the first quarter of 2022, the Company sold its remaining hospital classified as a direct financing lease (“DFL”) for $68 million and recognized a gain on sale of $23 million, which is included in other income (expense), net.

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

	March 31, 2022		December 31, 2021
Present value of minimum lease payments receivable	$	—	$	1,220
Present value of estimated residual value	—		44,706
Less deferred selling profits	—		(1,220)
Net investment in direct financing leases	$	—	$	44,706

Direct Financing Lease Internal Ratings

At March 31, 2022, the Company had no properties classified as a DFL. At December 31, 2021, the Company had one hospital classified as a DFL with a carrying amount of $45 million and an internal rating of “performing”.

Leases

Leases

Lease Income

The following table summarizes the Company’s lease income, excluding discontinued operations (in thousands):

	Three Months Ended March 31,
	2022		2021
Fixed income from operating leases	$	287,292	$	262,937
Variable income from operating leases	82,858		65,035
Interest income from direct financing leases	1,168		2,163

Direct Financing Leases

2022 Direct Financing Lease Sale

During the first quarter of 2022, the Company sold its remaining hospital classified as a direct financing lease (“DFL”) for $68 million and recognized a gain on sale of $23 million, which is included in other income (expense), net.

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

	March 31, 2022		December 31, 2021
Present value of minimum lease payments receivable	$	—	$	1,220
Present value of estimated residual value	—		44,706
Less deferred selling profits	—		(1,220)
Net investment in direct financing leases	$	—	$	44,706

Direct Financing Lease Internal Ratings

At March 31, 2022, the Company had no properties classified as a DFL. At December 31, 2021, the Company had one hospital classified as a DFL with a carrying amount of $45 million and an internal rating of “performing”.