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Leases
 12 Months Ended
Dec. 31, 2023
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. As most of our leases do not provide a rate implicit in the lease agreement, we generally use our incremental borrowing rate available at lease commencement, underlying collateral for the lease and the ability to borrow against that collateral on a secured basis to determine the present value of lease payments. The incremental borrowing rates were determined using our longer term borrowing rates (actual pricing through 30 years, as well as other longer term market rates).
The components of lease expense were as follows for the periods presented (in thousands):
Year Ended December 31,
 Classification202320222021
Operating lease cost: (1)
Real estate lease expenseProperty operating expenses$21,970 $22,150 $22,642 
Non-real estate investment lease expenseGeneral and administrative expenses7,243 5,794 4,596 
Finance lease cost:
Amortization of leased assetsProperty operating expenses5,854 6,837 8,105 
Interest on lease liabilitiesInterest expense4,050 6,164 6,574 
Sublease incomeRental income(3,933)(11,487)(8,687)
Total $35,184 $29,458 $33,230 
(1) Includes short-term leases which are immaterial.
Maturities of lease liabilities as of December 31, 2023 are as follows (in thousands):
Operating LeasesFinance Leases
2024$19,329 $5,547 
202518,800 3,980 
202616,637 4,030 
202716,494 3,991 
202816,291 3,948 
Thereafter863,847 369,892 
Total lease payments951,398 391,388 
Less: Imputed interest(647,845)(311,711)
Total present value of lease liabilities$303,553 $79,677 
Supplemental balance sheet information related to leases in which we are the lessee is as follows for the periods presented (in thousands, except lease terms and discount rate):
 ClassificationDecember 31, 2023December 31, 2022
Right of use assets:
Operating leases - real estateRight of use assets, net$283,293 $287,984 
Finance leases - real estateRight of use assets, net67,676 35,958 
Real estate right of use assets, net350,969 323,942 
Operating leases - non-real estate investmentsReceivables and other assets11,338 10,119 
Finance leases - held for sale(1)
Real property held for sale, net of accumulated depreciation— 116,453 
Total right of use assets, net$362,307 $450,514 
Lease liabilities:
Operating leases$303,553 $302,360 
Finance leases79,677 113,464 
Total lease liabilities$383,230 $415,824 
Weighted average remaining lease term (years):
Operating leases45.646.0
Finance leases60.719.8
Weighted average discount rate:
Operating leases5.27 %5.56 %
Finance leases7.71 %5.01 %
(1) During the year ended December 31, 2023, we contributed finance leases at seven properties previously classified as held for sale into a newly formed unconsolidated joint venture, which recognized the purchase option within the leases. See Note 5 for further discussion.
Supplemental cash flow information related to leases was as follows for the periods indicated (in thousands):
Year Ended December 31,
 Classification202320222021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leasesDecrease (increase) in receivables and other assets$(590)$8,805 $9,081 
Operating cash flows from operating leasesIncrease (decrease) in accrued expenses and other liabilities(2,037)(5,570)(6,008)
Operating cash flows from finance leasesDecrease (increase) in receivables and other assets3,061 8,672 8,336 
Financing cash flows from finance leasesOther financing activities(2,704)(2,255)(3,578)
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 years ended December 31, 2023, 2022 and 2021, we wrote-off previously recognized straight-line rent receivable balances of $16,642,000, $0 and $49,241,000, respectively, through a reduction of rental income, which relate to leases for which collection of substantially all contractual lease payments were no longer deemed probable.
Leases in our Triple-net and Outpatient Medical portfolios typically include some form of operating expense reimbursement by the tenant. Rental income related to operating leases and the corresponding 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 periods indicated were as follows (in thousands):
Year Ended December 31,
202320222021
Fixed income from operating leases$1,344,096 $1,258,238 $1,193,837 
Variable lease income211,977 193,548 180,858 
For the majority of our Seniors Housing Operating segment, revenue from resident fees and services is predominantly service-based, and as such, resident agreements are accounted for under ASC 606. Within that reportable segment, we also recognize revenue from residential seniors apartment leases in accordance with ASC 842. The amount of revenue related to these leases was $466,162,000, $410,749,000 and $194,078,000 for the years ended December 31, 2023, 2022 and 2021, respectively.
The following table sets forth the future minimum lease payments receivable for leases in effect at December 31, 2023 (excluding properties in our Seniors Housing Operating portfolio and excluding any operating expense reimbursements) (in thousands):
2024$1,391,509 
20251,379,176
20261,343,749
20271,323,525
20281,307,766
Thereafter10,469,656
Totals$17,215,381 
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. As most of our leases do not provide a rate implicit in the lease agreement, we generally use our incremental borrowing rate available at lease commencement, underlying collateral for the lease and the ability to borrow against that collateral on a secured basis to determine the present value of lease payments. The incremental borrowing rates were determined using our longer term borrowing rates (actual pricing through 30 years, as well as other longer term market rates).
The components of lease expense were as follows for the periods presented (in thousands):
Year Ended December 31,
 Classification202320222021
Operating lease cost: (1)
Real estate lease expenseProperty operating expenses$21,970 $22,150 $22,642 
Non-real estate investment lease expenseGeneral and administrative expenses7,243 5,794 4,596 
Finance lease cost:
Amortization of leased assetsProperty operating expenses5,854 6,837 8,105 
Interest on lease liabilitiesInterest expense4,050 6,164 6,574 
Sublease incomeRental income(3,933)(11,487)(8,687)
Total $35,184 $29,458 $33,230 
(1) Includes short-term leases which are immaterial.
Maturities of lease liabilities as of December 31, 2023 are as follows (in thousands):
Operating LeasesFinance Leases
2024$19,329 $5,547 
202518,800 3,980 
202616,637 4,030 
202716,494 3,991 
202816,291 3,948 
Thereafter863,847 369,892 
Total lease payments951,398 391,388 
Less: Imputed interest(647,845)(311,711)
Total present value of lease liabilities$303,553 $79,677 
Supplemental balance sheet information related to leases in which we are the lessee is as follows for the periods presented (in thousands, except lease terms and discount rate):
 ClassificationDecember 31, 2023December 31, 2022
Right of use assets:
Operating leases - real estateRight of use assets, net$283,293 $287,984 
Finance leases - real estateRight of use assets, net67,676 35,958 
Real estate right of use assets, net350,969 323,942 
Operating leases - non-real estate investmentsReceivables and other assets11,338 10,119 
Finance leases - held for sale(1)
Real property held for sale, net of accumulated depreciation— 116,453 
Total right of use assets, net$362,307 $450,514 
Lease liabilities:
Operating leases$303,553 $302,360 
Finance leases79,677 113,464 
Total lease liabilities$383,230 $415,824 
Weighted average remaining lease term (years):
Operating leases45.646.0
Finance leases60.719.8
Weighted average discount rate:
Operating leases5.27 %5.56 %
Finance leases7.71 %5.01 %
(1) During the year ended December 31, 2023, we contributed finance leases at seven properties previously classified as held for sale into a newly formed unconsolidated joint venture, which recognized the purchase option within the leases. See Note 5 for further discussion.
Supplemental cash flow information related to leases was as follows for the periods indicated (in thousands):
Year Ended December 31,
 Classification202320222021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leasesDecrease (increase) in receivables and other assets$(590)$8,805 $9,081 
Operating cash flows from operating leasesIncrease (decrease) in accrued expenses and other liabilities(2,037)(5,570)(6,008)
Operating cash flows from finance leasesDecrease (increase) in receivables and other assets3,061 8,672 8,336 
Financing cash flows from finance leasesOther financing activities(2,704)(2,255)(3,578)
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 years ended December 31, 2023, 2022 and 2021, we wrote-off previously recognized straight-line rent receivable balances of $16,642,000, $0 and $49,241,000, respectively, through a reduction of rental income, which relate to leases for which collection of substantially all contractual lease payments were no longer deemed probable.
Leases in our Triple-net and Outpatient Medical portfolios typically include some form of operating expense reimbursement by the tenant. Rental income related to operating leases and the corresponding 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 periods indicated were as follows (in thousands):
Year Ended December 31,
202320222021
Fixed income from operating leases$1,344,096 $1,258,238 $1,193,837 
Variable lease income211,977 193,548 180,858 
For the majority of our Seniors Housing Operating segment, revenue from resident fees and services is predominantly service-based, and as such, resident agreements are accounted for under ASC 606. Within that reportable segment, we also recognize revenue from residential seniors apartment leases in accordance with ASC 842. The amount of revenue related to these leases was $466,162,000, $410,749,000 and $194,078,000 for the years ended December 31, 2023, 2022 and 2021, respectively.
The following table sets forth the future minimum lease payments receivable for leases in effect at December 31, 2023 (excluding properties in our Seniors Housing Operating portfolio and excluding any operating expense reimbursements) (in thousands):
2024$1,391,509 
20251,379,176
20261,343,749
20271,323,525
20281,307,766
Thereafter10,469,656
Totals$17,215,381 
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. As most of our leases do not provide a rate implicit in the lease agreement, we generally use our incremental borrowing rate available at lease commencement, underlying collateral for the lease and the ability to borrow against that collateral on a secured basis to determine the present value of lease payments. The incremental borrowing rates were determined using our longer term borrowing rates (actual pricing through 30 years, as well as other longer term market rates).
The components of lease expense were as follows for the periods presented (in thousands):
Year Ended December 31,
 Classification202320222021
Operating lease cost: (1)
Real estate lease expenseProperty operating expenses$21,970 $22,150 $22,642 
Non-real estate investment lease expenseGeneral and administrative expenses7,243 5,794 4,596 
Finance lease cost:
Amortization of leased assetsProperty operating expenses5,854 6,837 8,105 
Interest on lease liabilitiesInterest expense4,050 6,164 6,574 
Sublease incomeRental income(3,933)(11,487)(8,687)
Total $35,184 $29,458 $33,230 
(1) Includes short-term leases which are immaterial.
Maturities of lease liabilities as of December 31, 2023 are as follows (in thousands):
Operating LeasesFinance Leases
2024$19,329 $5,547 
202518,800 3,980 
202616,637 4,030 
202716,494 3,991 
202816,291 3,948 
Thereafter863,847 369,892 
Total lease payments951,398 391,388 
Less: Imputed interest(647,845)(311,711)
Total present value of lease liabilities$303,553 $79,677 
Supplemental balance sheet information related to leases in which we are the lessee is as follows for the periods presented (in thousands, except lease terms and discount rate):
 ClassificationDecember 31, 2023December 31, 2022
Right of use assets:
Operating leases - real estateRight of use assets, net$283,293 $287,984 
Finance leases - real estateRight of use assets, net67,676 35,958 
Real estate right of use assets, net350,969 323,942 
Operating leases - non-real estate investmentsReceivables and other assets11,338 10,119 
Finance leases - held for sale(1)
Real property held for sale, net of accumulated depreciation— 116,453 
Total right of use assets, net$362,307 $450,514 
Lease liabilities:
Operating leases$303,553 $302,360 
Finance leases79,677 113,464 
Total lease liabilities$383,230 $415,824 
Weighted average remaining lease term (years):
Operating leases45.646.0
Finance leases60.719.8
Weighted average discount rate:
Operating leases5.27 %5.56 %
Finance leases7.71 %5.01 %
(1) During the year ended December 31, 2023, we contributed finance leases at seven properties previously classified as held for sale into a newly formed unconsolidated joint venture, which recognized the purchase option within the leases. See Note 5 for further discussion.
Supplemental cash flow information related to leases was as follows for the periods indicated (in thousands):
Year Ended December 31,
 Classification202320222021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leasesDecrease (increase) in receivables and other assets$(590)$8,805 $9,081 
Operating cash flows from operating leasesIncrease (decrease) in accrued expenses and other liabilities(2,037)(5,570)(6,008)
Operating cash flows from finance leasesDecrease (increase) in receivables and other assets3,061 8,672 8,336 
Financing cash flows from finance leasesOther financing activities(2,704)(2,255)(3,578)
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 years ended December 31, 2023, 2022 and 2021, we wrote-off previously recognized straight-line rent receivable balances of $16,642,000, $0 and $49,241,000, respectively, through a reduction of rental income, which relate to leases for which collection of substantially all contractual lease payments were no longer deemed probable.
Leases in our Triple-net and Outpatient Medical portfolios typically include some form of operating expense reimbursement by the tenant. Rental income related to operating leases and the corresponding 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 periods indicated were as follows (in thousands):
Year Ended December 31,
202320222021
Fixed income from operating leases$1,344,096 $1,258,238 $1,193,837 
Variable lease income211,977 193,548 180,858 
For the majority of our Seniors Housing Operating segment, revenue from resident fees and services is predominantly service-based, and as such, resident agreements are accounted for under ASC 606. Within that reportable segment, we also recognize revenue from residential seniors apartment leases in accordance with ASC 842. The amount of revenue related to these leases was $466,162,000, $410,749,000 and $194,078,000 for the years ended December 31, 2023, 2022 and 2021, respectively.
The following table sets forth the future minimum lease payments receivable for leases in effect at December 31, 2023 (excluding properties in our Seniors Housing Operating portfolio and excluding any operating expense reimbursements) (in thousands):
2024$1,391,509 
20251,379,176
20261,343,749
20271,323,525
20281,307,766
Thereafter10,469,656
Totals$17,215,381