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Leases (Tables)
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Summary of Lease Income Types Relating to Lease Payments Along With the Total Other Rental Income

The following table presents the lease income types relating to lease payments for residential and non-residential leases along with the total other rental income for the years ended December 31, 2023, 2022 and 2021 (amounts in thousands):

 

 

 

Year Ended December 31, 2023

 

 

Year Ended December 31, 2022

 

 

Year Ended December 31, 2021

 

Income Type

 

Residential
Leases

 

 

Non-Residential
Leases

 

 

Total

 

 

Residential
Leases

 

 

Non-Residential
Leases

 

 

Total

 

 

Residential
Leases

 

 

Non-Residential
Leases

 

 

Total

 

Residential and non-residential rent

 

$

2,578,565

 

 

$

62,193

 

 

$

2,640,758

 

 

$

2,446,516

 

 

$

63,995

 

 

$

2,510,511

 

 

$

2,202,133

 

 

$

61,033

 

 

$

2,263,166

 

Utility recoveries (RUBS income) (1)

 

 

86,628

 

 

 

906

 

 

 

87,534

 

 

 

81,140

 

 

 

844

 

 

 

81,984

 

 

 

74,846

 

 

 

723

 

 

 

75,569

 

Parking rent

 

 

44,081

 

 

 

449

 

 

 

44,530

 

 

 

43,335

 

 

 

435

 

 

 

43,770

 

 

 

40,934

 

 

 

565

 

 

 

41,499

 

Other lease revenue (2)

 

 

(25,095

)

 

 

(142

)

 

 

(25,237

)

 

 

(12,637

)

 

 

(69

)

 

 

(12,706

)

 

 

(17,667

)

 

 

4,027

 

 

 

(13,640

)

Total lease revenue

 

$

2,684,179

 

 

$

63,406

 

 

 

2,747,585

 

 

$

2,558,354

 

 

$

65,205

 

 

 

2,623,559

 

 

$

2,300,246

 

 

$

66,348

 

 

 

2,366,594

 

Parking revenue

 

 

 

 

 

 

 

 

40,836

 

 

 

 

 

 

 

 

 

37,338

 

 

 

 

 

 

 

 

 

26,789

 

Other revenue

 

 

 

 

 

 

 

 

85,543

 

 

 

 

 

 

 

 

 

74,283

 

 

 

 

 

 

 

 

 

70,614

 

Total other rental income (3)

 

 

 

 

 

 

 

 

126,379

 

 

 

 

 

 

 

 

 

111,621

 

 

 

 

 

 

 

 

 

97,403

 

Rental income

 

 

 

 

 

 

 

$

2,873,964

 

 

 

 

 

 

 

 

$

2,735,180

 

 

 

 

 

 

 

 

$

2,463,997

 

 

(1)
RUBS income primarily consists of variable payments representing the recovery of utility costs from residents.
(2)
Other lease revenue consists of the revenue adjustment related to bad debt (see below for further discussion) and other miscellaneous lease revenue.
(3)
Other rental income is accounted for under the revenue recognition standard and primarily consists of third-party transient parking revenue and ancillary income such as cable and laundry revenue.
Summary of Residential and Non-Residential Accounts Receivable and Straight-Line Receivable Balances

The following table presents residential and non-residential accounts receivable and straight-line receivable balances for the Company’s properties as of December 31, 2023 and 2022 (amounts in thousands):

 

 

 

Residential

 

 

Non-Residential

 

Balance Sheet (Other assets):

 

December 31, 2023

 

 

December 31, 2022

 

 

December 31, 2023

 

 

December 31, 2022

 

Resident/tenant accounts receivable balances

 

$

21,477

 

 

$

35,688

 

 

$

2,822

 

 

$

2,820

 

Allowance for doubtful accounts

 

 

(15,846

)

 

 

(31,405

)

 

 

(1,849

)

 

 

(2,152

)

Net receivable balances

 

$

5,631

 

 

$

4,283

 

 

$

973

 

 

$

668

 

 

 

 

 

 

 

 

 

 

 

 

 

Straight-line receivable balances

 

$

9,183

 

 

$

4,398

 

 

$

11,915

 

 (1)

$

13,795

 

 

(1)
During the year ended December 31, 2023, the Company recorded a non-cash write-off of approximately $1.5 million in straight-line receivables due to the bankruptcy of Rite Aid.
Summary of Residential Bad Debt for Company's Properties

The following table presents residential bad debt for the Company’s properties for the years ended December 31, 2023, 2022 and 2021 (amounts in thousands):

 

 

 

Year Ended December 31,

 

Income Statement (Rental income):

 

2023

 

 

2022

 

 

2021

 

Bad debt, net (1)

 

$

38,117

 

 

$

26,570

 

 

$

31,485

 

% of residential rental income

 

 

1.4

%

 

 

1.0

%

 

 

1.3

%

 

(1)
Bad debt, net benefited from additional resident payments due to governmental rental assistance programs of approximately $2.8 million, $34.7 million and $34.8 million for the years ended December 31, 2023, 2022 and 2021, respectively.
Summary of Right-of-Use Assets and Related Lease Liabilities The following table presents the Company’s ROU assets and related lease liabilities as of December 31, 2023 and 2022 (amounts in thousands):

 

 

 

2023

 

 

2022

 

Right-of-use assets:

 

 

 

 

 

 

Corporate office leases (operating)

 

$

38,745

 

 

$

34,767

 

Ground leases (finance)

 

 

94,091

 

 

 

95,834

 

Ground leases (operating)

 

 

324,430

 

 

 

332,355

 

Right-of-use assets

 

$

457,266

 

 

$

462,956

 

Lease liabilities:

 

 

 

 

 

 

Corporate office leases (operating)

 

$

40,485

 

 

$

35,747

 

Ground leases (finance)

 

 

68,143

 

 

 

68,919

 

Ground leases (operating)

 

 

203,012

 

 

 

204,082

 

Lease liabilities

 

$

311,640

 

 

$

308,748

 
Summary of Quantitative Disclosures for Lessees

The following tables illustrate the quantitative disclosures for lessees as of and for the years ended December 31, 2023, 2022 and 2021 (amounts in thousands):

 

 

 

Year Ended
December 31, 2023

 

 

Year Ended
December 31, 2022

 

 

Year Ended
December 31, 2021

 

Lease cost:

 

 

 

 

 

 

 

 

 

Finance lease cost:

 

 

 

 

 

 

 

 

 

Amortization of right-of-use assets (capitalized)

 

$

146

 

 

$

351

 

 

$

351

 

Amortization of right-of-use assets (expensed)

 

 

1,781

 

 

 

1,391

 

 

 

1,391

 

Interest on lease liabilities (capitalized)

 

 

—

 

 

 

—

 

 

 

452

 

Interest on lease liabilities (expensed)

 

 

1,886

 

 

 

1,904

 

 

 

1,464

 

Operating lease cost:

 

 

 

 

 

 

 

 

 

Corporate office leases

 

 

4,738

 

 

 

4,061

 

 

 

3,581

 

Ground leases

 

 

18,338

 

 

 

18,338

 

 

 

18,338

 

Variable lease cost:

 

 

 

 

 

 

 

 

 

Corporate office leases

 

 

599

 

 

 

430

 

 

 

1,037

 

Ground leases

 

 

4,338

 

 

 

4,342

 

 

 

2,973

 

Total lease cost

 

$

31,826

 

 

$

30,817

 

 

$

29,587

 

 

 

 

 

 

December 31, 2023

 

 

December 31, 2022

 

 

December 31, 2021

 

Other information:

 

 

 

 

 

 

 

 

 

Cash paid for amounts included in the measurement of
   lease liabilities:

 

 

 

 

 

 

 

 

 

Investing cash flows from finance leases

 

$

—

 

 

$

—

 

 

$

383

 

Financing cash flows from finance leases

 

$

2,847

 

 

$

2,463

 

 

$

1,898

 

Operating cash flows from operating leases:

 

 

 

 

 

 

 

 

 

Corporate office leases

 

$

4,576

 

 

$

4,385

 

 

$

5,016

 

Ground leases

 

$

15,911

 

 

$

15,037

 

 

$

14,682

 

Weighted-average remaining lease term – finance leases

 

23.1 years

 

 

24.1 years

 

 

25.2 years

 

Weighted-average remaining lease term – operating leases:

 

 

 

 

 

 

 

 

 

Corporate office leases

 

17.7 years

 

 

16.1 years

 

 

16.8 years

 

Ground leases

 

60.7 years

 

 

61.2 years

 

 

61.8 years

 

Weighted-average discount rate – finance leases

 

 

2.8

%

 

 

2.8

%

 

 

2.8

%

Weighted-average discount rate – operating leases:

 

 

 

 

 

 

 

 

 

Corporate office leases

 

 

4.3

%

 

 

3.2

%

 

 

3.2

%

Ground leases

 

 

5.1

%

 

 

5.1

%

 

 

5.1

%
Summary of Undiscounted Cash Flows for Contractual Obligations for Minimum Rent Payments/Receipts

The following table summarizes the Company’s undiscounted cash flows for contractual obligations for minimum rent payments/receipts under operating and financing leases for the next five years and thereafter as of December 31, 2023:

(Payments)/Receipts Due by Year (in thousands)

 

 

 

2024

 

 

2025

 

 

2026

 

 

2027

 

 

2028

 

 

Thereafter

 

 

Total

 

Finance Leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Minimum Rent Payments (a)

 

$

(2,881

)

 

$

(2,946

)

 

$

(2,959

)

 

$

(2,971

)

 

$

(2,984

)

 

$

(82,253

)

 

$

(96,994

)

Operating Leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Minimum Rent Payments (a)

 

$

(15,797

)

 

$

(16,028

)

 

$

(15,881

)

 

$

(15,984

)

 

$

(16,132

)

 

$

(806,155

)

 

$

(885,977

)

Minimum Rent Receipts (b)

 

$

53,000

 

 

$

48,410

 

 

$

44,582

 

 

$

40,771

 

 

$

34,709

 

 

$

112,720

 

 

$

334,192

 

 

(a)
Minimum basic rent due for corporate office leases and base rent due on ground leases where the Company is the lessee.
(b)
Minimum basic rent receipts due for various non-residential space where the Company is the lessor. Excludes residential leases due to their short-term nature.
Summary of Reconciliation of Lease Liabilities

The following table provides a reconciliation of lease liabilities from our undiscounted cash flows for minimum rent payments as of December 31, 2023 (amounts in thousands):

 

 

 

2023

 

Total minimum rent payments

 

$

982,971

 

Less: Lease discount

 

 

(671,331

)

Lease liabilities

 

$

311,640