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Leases
3 Months Ended
Mar. 31, 2021
Leases [Abstract]  
Leases Leases
We lease land, buildings, office space and certain equipment. Many of our leases include a renewal option to extend the term from one to 25 years or more. Renewal options that we are reasonably certain to exercise are recognized in our right-of-use assets and lease liabilities.
The components of lease expense were as follows for the period presented (in thousands):
Three Months Ended
 ClassificationMarch 31, 2021March 31, 2020
Operating lease cost: (1)
Real estate lease expenseProperty operating expenses$5,358 $6,492 
Non-real estate investment lease expenseGeneral and administrative expenses1,185 1,267 
Finance lease cost:
Amortization of leased assetsProperty operating expenses2,035 2,243 
Interest on lease liabilitiesInterest expense1,663 1,379 
Sublease incomeRental income(1,043)(1,043)
Total $9,198 $10,338 
(1) Includes short-term leases which are immaterial.
Supplemental balance sheet information related to leases is as follows (in thousands):
 ClassificationMarch 31, 2021December 31, 2020
Right of use assets:
Operating leases - real estateRight of use assets, net$301,505 $310,017 
Finance leases - real estateRight of use assets, net153,282 155,849 
Real estate right of use assets, net454,787 465,866 
Operating leases - non-real estate investmentsReceivables and other assets7,886 9,624 
Total right of use assets, net$462,673 $475,490 
Lease liabilities:
Operating leases$303,387 $311,164 
Financing leases105,529 107,102 
Total$408,916 $418,266 
Substantially all of our operating leases in which we are the lessor contain escalating rent structures. Leases with fixed annual rental escalators are generally recognized on a straight-line basis over the initial lease period, subject to a collectability assessment. Rental income related to leases with contingent rental escalators is generally recorded based on the contractual cash rental payments due for the period. During the three months ended March 31, 2021 and 2020, we reserved for straight-line rent receivable balances of $49,241,000 and $32,268,000 through rental income, relating to leases for which collection of substantially all contractual lease payments was no longer deemed probable.
Leases in our Triple-net and Outpatient Medical portfolios typically include some form of operating expense reimbursement by the tenant. For the three months ended March 31, 2021, we recognized $302,843,000 of rental income related to operating leases, of which $46,026,000 was for variable lease payments which primarily represents the reimbursement of operating costs such as common area maintenance expenses, utilities, insurance and real estate taxes. For the three months ended March 31, 2020, we recognized $389,960,000 of rental income related to operating leases, of which $55,754,000 was for variable lease payments.
Leases Leases
We lease land, buildings, office space and certain equipment. Many of our leases include a renewal option to extend the term from one to 25 years or more. Renewal options that we are reasonably certain to exercise are recognized in our right-of-use assets and lease liabilities.
The components of lease expense were as follows for the period presented (in thousands):
Three Months Ended
 ClassificationMarch 31, 2021March 31, 2020
Operating lease cost: (1)
Real estate lease expenseProperty operating expenses$5,358 $6,492 
Non-real estate investment lease expenseGeneral and administrative expenses1,185 1,267 
Finance lease cost:
Amortization of leased assetsProperty operating expenses2,035 2,243 
Interest on lease liabilitiesInterest expense1,663 1,379 
Sublease incomeRental income(1,043)(1,043)
Total $9,198 $10,338 
(1) Includes short-term leases which are immaterial.
Supplemental balance sheet information related to leases is as follows (in thousands):
 ClassificationMarch 31, 2021December 31, 2020
Right of use assets:
Operating leases - real estateRight of use assets, net$301,505 $310,017 
Finance leases - real estateRight of use assets, net153,282 155,849 
Real estate right of use assets, net454,787 465,866 
Operating leases - non-real estate investmentsReceivables and other assets7,886 9,624 
Total right of use assets, net$462,673 $475,490 
Lease liabilities:
Operating leases$303,387 $311,164 
Financing leases105,529 107,102 
Total$408,916 $418,266 
Substantially all of our operating leases in which we are the lessor contain escalating rent structures. Leases with fixed annual rental escalators are generally recognized on a straight-line basis over the initial lease period, subject to a collectability assessment. Rental income related to leases with contingent rental escalators is generally recorded based on the contractual cash rental payments due for the period. During the three months ended March 31, 2021 and 2020, we reserved for straight-line rent receivable balances of $49,241,000 and $32,268,000 through rental income, relating to leases for which collection of substantially all contractual lease payments was no longer deemed probable.
Leases in our Triple-net and Outpatient Medical portfolios typically include some form of operating expense reimbursement by the tenant. For the three months ended March 31, 2021, we recognized $302,843,000 of rental income related to operating leases, of which $46,026,000 was for variable lease payments which primarily represents the reimbursement of operating costs such as common area maintenance expenses, utilities, insurance and real estate taxes. For the three months ended March 31, 2020, we recognized $389,960,000 of rental income related to operating leases, of which $55,754,000 was for variable lease payments.
Leases Leases
We lease land, buildings, office space and certain equipment. Many of our leases include a renewal option to extend the term from one to 25 years or more. Renewal options that we are reasonably certain to exercise are recognized in our right-of-use assets and lease liabilities.
The components of lease expense were as follows for the period presented (in thousands):
Three Months Ended
 ClassificationMarch 31, 2021March 31, 2020
Operating lease cost: (1)
Real estate lease expenseProperty operating expenses$5,358 $6,492 
Non-real estate investment lease expenseGeneral and administrative expenses1,185 1,267 
Finance lease cost:
Amortization of leased assetsProperty operating expenses2,035 2,243 
Interest on lease liabilitiesInterest expense1,663 1,379 
Sublease incomeRental income(1,043)(1,043)
Total $9,198 $10,338 
(1) Includes short-term leases which are immaterial.
Supplemental balance sheet information related to leases is as follows (in thousands):
 ClassificationMarch 31, 2021December 31, 2020
Right of use assets:
Operating leases - real estateRight of use assets, net$301,505 $310,017 
Finance leases - real estateRight of use assets, net153,282 155,849 
Real estate right of use assets, net454,787 465,866 
Operating leases - non-real estate investmentsReceivables and other assets7,886 9,624 
Total right of use assets, net$462,673 $475,490 
Lease liabilities:
Operating leases$303,387 $311,164 
Financing leases105,529 107,102 
Total$408,916 $418,266 
Substantially all of our operating leases in which we are the lessor contain escalating rent structures. Leases with fixed annual rental escalators are generally recognized on a straight-line basis over the initial lease period, subject to a collectability assessment. Rental income related to leases with contingent rental escalators is generally recorded based on the contractual cash rental payments due for the period. During the three months ended March 31, 2021 and 2020, we reserved for straight-line rent receivable balances of $49,241,000 and $32,268,000 through rental income, relating to leases for which collection of substantially all contractual lease payments was no longer deemed probable.
Leases in our Triple-net and Outpatient Medical portfolios typically include some form of operating expense reimbursement by the tenant. For the three months ended March 31, 2021, we recognized $302,843,000 of rental income related to operating leases, of which $46,026,000 was for variable lease payments which primarily represents the reimbursement of operating costs such as common area maintenance expenses, utilities, insurance and real estate taxes. For the three months ended March 31, 2020, we recognized $389,960,000 of rental income related to operating leases, of which $55,754,000 was for variable lease payments.