Leases

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Leases

Leases

Lease Income

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Fixed income from operating leases	$	298,680	$	276,430	$	882,700	$	807,677
Variable income from operating leases	93,621		77,086		266,830		214,453
Interest income from direct financing leases	—		2,179		1,168		6,522

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):

	September 30, 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 September 30, 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 September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Fixed income from operating leases	$	298,680	$	276,430	$	882,700	$	807,677
Variable income from operating leases	93,621		77,086		266,830		214,453
Interest income from direct financing leases	—		2,179		1,168		6,522

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):

	September 30, 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 September 30, 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”.