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Leases (Tables)
 12 Months Ended
Dec. 31, 2021
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, 2021, 2020 and 2019 (amounts in thousands):

 

 

 

Year Ended December 31, 2021

 

 

Year Ended December 31, 2020

 

 

Year Ended December 31, 2019

 

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

 

$

2,199,986

 

 

$

61,033

 

 

$

2,261,019

 

 

$

2,336,778

 

 

$

51,663

 

 

$

2,388,441

 

 

$

2,414,201

 

 

$

71,988

 

 

$

2,486,189

 

Utility recoveries (RUBS income) (1)

 

 

74,846

 

 

 

723

 

 

 

75,569

 

 

 

70,699

 

 

 

677

 

 

 

71,376

 

 

 

67,659

 

 

 

917

 

 

 

68,576

 

Parking rent

 

 

40,934

 

 

 

565

 

 

 

41,499

 

 

 

38,743

 

 

 

412

 

 

 

39,155

 

 

 

37,557

 

 

 

348

 

 

 

37,905

 

Other lease revenue (2)

 

 

(17,667

)

 

 

4,027

 

 

 

(13,640

)

 

 

(28,663

)

 

 

(5,519

)

 

 

(34,182

)

 

 

1,979

 

 

 

(820

)

 

 

1,159

 

Total lease revenue

 

$

2,298,099

 

 

$

66,348

 

 

 

2,364,447

 

 

$

2,417,557

 

 

$

47,233

 

 

 

2,464,790

 

 

$

2,521,396

 

 

$

72,433

 

 

 

2,593,829

 

Parking revenue

 

 

 

 

 

 

 

 

 

 

26,789

 

 

 

 

 

 

 

 

 

 

 

22,210

 

 

 

 

 

 

 

 

 

 

 

28,272

 

Other revenue

 

 

 

 

 

 

 

 

 

 

72,761

 

 

 

 

 

 

 

 

 

 

 

84,705

 

 

 

 

 

 

 

 

 

 

 

78,590

 

Total other rental income (3)

 

 

 

 

 

 

 

 

 

 

99,550

 

 

 

 

 

 

 

 

 

 

 

106,915

 

 

 

 

 

 

 

 

 

 

 

106,862

 

Rental income

 

 

 

 

 

 

 

 

 

$

2,463,997

 

 

 

 

 

 

 

 

 

 

$

2,571,705

 

 

 

 

 

 

 

 

 

 

$

2,700,691

 

 

(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 and other miscellaneous lease revenue.

(3)

Other rental income is accounted for under the revenue recognition standard.    
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, 2021 and 2020 (amounts in thousands):

 

 

 

Residential

 

 

Non-Residential

 

Balance Sheet (Other assets):

 

December 31, 2021

 

 

December 31, 2020

 

 

December 31, 2021

 

 

December 31, 2020

 

Resident/tenant accounts receivable balances

 

$

37,959

 

 

$

30,856

 

 

$

3,218

 

 

$

7,598

 

Allowance for doubtful accounts

 

 

(33,121

)

 

 

(24,021

)

 

 

(2,365

)

 

 

(6,527

)

Net receivable balances

 

$

4,838

 

(1)

$

6,835

 

 

$

853

 

 

$

1,071

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Straight-line receivable balances

 

$

7,460

 

 

$

19,992

 

 

$

13,021

 

 

$

13,413

 

 

(1)

The Company held residential security deposits approximating 48.2% of the net receivable balance at December 31, 2021.
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, 2021, 2020 and 2019 (amounts in thousands):

 

 

 

Year Ended December 31,

 

Income Statement (Rental income):

 

 

2021

 

 

 

2020

 

 

 

2019

 

Bad debt, net (1)

 

$

31,485

 

 

$

42,505

 

 

$

12,067

 

% of rental income

 

 

1.3

%

 

 

1.7

%

 

 

0.5

%

 

(1)

Bad debt, net benefited from additional resident payments due to governmental rental assistance programs of approximately $34.8 million for the year ended December 31, 2021.

 
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, 2021 and 2020 (amounts in thousands):

 

 

 

2021

 

 

2020

 

Right-of-use assets:

 

 

 

 

 

 

 

 

Corporate office leases (operating)

 

$

36,897

 

 

$

39,203

 

Ground leases (finance)

 

 

97,575

 

 

 

57,584

 

Ground leases (operating)

 

 

340,241

 

 

 

402,500

 

Right-of-use assets

 

$

474,713

 

 

$

499,287

 

Lease liabilities:

 

 

 

 

 

 

 

 

Corporate office leases (operating)

 

$

37,760

 

 

$

40,470

 

Ground leases (finance)

 

 

69,479

 

 

 

23,350

 

Ground leases (operating)

 

 

205,096

 

 

 

265,310

 

Lease liabilities

 

$

312,335

 

 

$

329,130

 

 
Summary of Quantitative Disclosures for Lessees

The following tables illustrate the quantitative disclosures for lessees as of and for the years ended December 31, 2021, 2020 and 2019 (amounts in thousands):

 

 

 

Year Ended

December 31, 2021

 

 

Year Ended

December 31, 2020

 

 

Year Ended

December 31, 2019

 

Lease cost:

 

 

 

 

 

 

 

 

 

 

 

 

Finance lease cost:

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of right-of-use assets (capitalized)

 

$

351

 

 

$

—

 

 

$

—

 

Amortization of right-of-use assets (expensed)

 

 

1,391

 

 

 

—

 

 

 

—

 

Interest on lease liabilities (capitalized)

 

 

452

 

 

 

1,029

 

 

 

225

 

Interest on lease liabilities (expensed)

 

 

1,464

 

 

 

—

 

 

 

—

 

Operating lease cost:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate office leases

 

 

3,581

 

 

 

3,747

 

 

 

3,937

 

Ground leases

 

 

18,338

 

 

 

22,102

 

 

 

22,198

 

Variable lease cost:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate office leases

 

 

1,037

 

 

 

1,307

 

 

 

1,489

 

Ground leases

 

 

2,973

 

 

 

3,304

 

 

 

3,700

 

Total lease cost

 

$

29,587

 

 

$

31,489

 

 

$

31,549

 

 

 

 

 

 

December 31, 2021

 

 

December 31, 2020

 

 

December 31, 2019

 

Other information:

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid for amounts included in the measurement of

   lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Investing cash flows from finance leases

 

$

383

 

 

$

567

 

 

$

188

 

Financing cash flows from finance leases

 

$

1,898

 

 

$

—

 

 

$

34,734

 

Operating cash flows from operating leases:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate office leases

 

$

5,016

 

 

$

5,296

 

 

$

5,494

 

Ground leases

 

$

14,682

 

 

$

16,552

 

 

$

16,837

 

ROU assets obtained in exchange for new finance lease liabilities

 

$

—

 

 

$

—

 

 

$

23,201

 

ROU assets obtained in exchange for new operating lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate office leases

 

$

—

 

 

$

—

 

 

$

44,298

 

Ground leases

 

$

—

 

 

$

—

 

 

$

422,018

 

Weighted-average remaining lease term – finance leases

 

25.2 years

 

 

18.7 years

 

 

19.7 years

 

Weighted-average remaining lease term – operating leases:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate office leases

 

16.8 years

 

 

17.4 years

 

 

18.1 years

 

Ground leases

 

61.8 years

 

 

55.3 years

 

 

56.2 years

 

Weighted-average discount rate – finance leases

 

 

2.8

%

 

 

3.0

%

 

 

3.0

%

Weighted-average discount rate – operating leases:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate office leases

 

 

3.2

%

 

 

3.2

%

 

 

3.2

%

Ground leases

 

 

5.1

%

 

 

5.0

%

 

 

5.0

%

 
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, 2021:

 

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

 

 

 

2022

 

 

2023

 

 

2024

 

 

2025

 

 

2026

 

 

Thereafter

 

 

Total

 

Finance Leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Minimum Rent Payments (a)

 

$

(2,463

)

 

$

(2,662

)

 

$

(2,880

)

 

$

(2,946

)

 

$

(2,959

)

 

$

(88,209

)

 

$

(102,119

)

Operating Leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Minimum Rent Payments (a)

 

$

(15,090

)

 

$

(14,998

)

 

$

(15,131

)

 

$

(14,957

)

 

$

(14,843

)

 

$

(831,456

)

 

$

(906,475

)

Minimum Rent Receipts (b)

 

$

58,561

 

 

$

56,754

 

 

$

51,295

 

 

$

45,091

 

 

$

37,283

 

 

$

135,922

 

 

$

384,906

 

 

(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, 2021 (amounts in thousands):

 

 

 

2021

 

Total minimum rent payments

 

$

1,008,594

 

Less: Lease discount

 

 

(696,259

)

Lease liabilities

 

$

312,335