Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Accounting Changes And Error Corrections [Abstract]

The major classes of assets, liabilities, and noncontrolling equity interests held by the Company's consolidated VIEs, exclusive of the Operating Partnership, are as follows:

(in thousands)	December 31, 2019		December 31, 2018
Assets
Net real estate investments	$	325,464		112,085
Cash, cash equivalents, and restricted cash		57,269		7,309
Liabilities
Notes payable		17,740		18,432
Equity
Limited partners’ interests in consolidated partnerships		30,655		30,280

Components of Tenant and Other Receivables

The following table represents the components of Tenant and other receivables in the accompanying Consolidated Balance Sheets:

	December 31,
(in thousands)	2019		2018
Billed tenant receivables	$	24,906		25,590
Accrued CAM, insurance and tax reimbursements		10,620		25,305
Other receivables		26,724		30,953
Straight-line rent receivables		107,087		105,677
Less: allowance for doubtful accounts ⁽¹⁾		—		(10,100	)
Less: straight-line rent reserves ⁽¹⁾		—		(5,066	)
Total tenant and other receivables, net	$	169,337		172,359

⁽¹⁾

Beginning with the adoption of ASC 842, Leases, on January 1, 2019, uncollectible lease income is a direct charge against Lease income and the related receivable. Prior to 2019, uncollectible lease income was recorded as Provision for doubtful accounts included in Other operating expenses.

Provisions for Doubtful Accounts

The Company recorded the following provisions for doubtful accounts:

	Year ended December 31,
(in thousands)	2018		2017
Gross provision for doubtful accounts		4,993		3,992
Provision for straight line rent reserve		1,741		1,129

Revenues and Other Receivables

All income from management service contracts is included within Management, transaction and other fees on the Consolidated Statements of Operations. Additionally, Other property income, which includes incidental income from the properties, is generally recognized at the point in time that the performance obligation is met. The primary components of these revenue streams, the timing of satisfying the performance obligations, and amounts recognized are as follows:

		Year ended December 31,
(in thousands)	Timing of satisfaction of performance obligations	2019		2018		2017
Other property income	Point in time	$	9,201		8,711		7,982
Management, transaction, and other fees:
Property management services	Over time		14,744		14,663		13,917
Asset management services	Over time		7,135		7,213		7,090
Leasing services	Point in time		3,692		4,044		3,573
Other transaction fees	Point in time		4,065		2,574		1,578
Total management, transaction, and other fees		$	29,636		28,494		26,158

Property, Plant and Equipment

The following table details the components of Real estate assets in the Consolidated Balance Sheets:

(in thousands)	December 31, 2019		December 31, 2018
Land	$	4,288,695	$	4,205,445
Land improvements		607,624		613,847
Buildings		5,101,061		5,088,102
Building and tenant improvements		946,034		901,596
Construction in progress		151,880		54,172
Total real estate assets	$	11,095,294		10,863,162

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

(p)

Recent Accounting Pronouncements

The following table provides a brief description of recent accounting pronouncements and expected impact on our financial statements:



Standard	Description	Date of adoption	Effect on the financial statements or other significant matters
Not yet adopted:





ASU 2016-13, June 2016, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	This ASU replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU also applies to how the Company evaluates impairments of any available-for-sale debt securities and any lease receivables arising from leases classified as sales-type or direct finance leases.	January 2020	The Company has evaluated this ASU and, based on the nature of financial instruments within scope of the standard, has determined that the impact of adoption is limited to recognizing impairments of available-for-sale debt securities in earnings. The Company’s available-for-sale debt securities have a fair value of $10.8 million at December 31, 2019, as seen in note 11. Additional disclosures, if material, are also required.

ASU 2018-19, November 2018: Codification Improvements to Topic 326, Financial Instruments - Credit Losses	This ASU clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases.	January 2020	The adoption of this ASU will not have a material impact on the Company’s financial statements and related disclosures. See Leases section of Note 1 for disclosure of collectibility policy over lease receivables from operating leases.

ASU 2018-13, August 2018: Fair Value Measurements (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement	This ASU modifies the disclosure requirements for fair value measurements within the scope of Topic 820, Fair Value Measurements, including the removal and modification of certain existing disclosures, and the additional of new disclosures for certain types of fair value measurements.	January 2020	The Company has evaluated the impact of adopting this new accounting standard, whose impact is limited to fair value measurement disclosures. Based on the nature of the Company’s fair value measurements and disclosure requirements, the adoption of this standard is not expected to have an impact on the Company’s financial statements or related disclosures.

ASU 2018-15, August 2018, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract	The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The ASU provides further clarification of the appropriate presentation of capitalized costs, the period over which to recognize the expense, the presentation within the Statements of Operations and Statements of Cash Flows, and the disclosure requirements. Early adoption of the standard is permitted.	January 2020	The Company has evaluated the accounting standard, which is consistent with existing practice, and therefore it will not have a material impact on the Company’s financial statements and related disclosures.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Description

Date of adoption

Effect on the financial statements or other significant matters

Recently adopted:

Leases (Topic 842) and related updates:

ASU 2016-02, February 2016, Leases (Topic 842)

ASU 2018-10, July 2018: Codification Improvements to Topic 842, Leases

ASU 2018-11, July 2018, Leases (Topic 842): Targeted Improvements

ASU 2018-20, December 2018, Leases (Topic 842): Narrow-Scope Improvements for Lessors

ASU 2019-01, March 2019, Leases (Topic 842): Codification Improvements

Topic 842 amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets. It also makes targeted changes to lessor accounting.

The provisions of these ASUs were effective as of January 1, 2019, with early adoption permitted. Topic 842 provides a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief or an additional transition method, allowing for initial application at the date of adoption and a cumulative-effect adjustment to opening retained earnings.

See the updated Leases accounting policy disclosed in Note 1 and the added Leases disclosures in Note 7.

January 2019

The Company has completed its evaluation and adoption of this standard, as discussed in Note 1. The Company utilized the alternative modified retrospective transition method provided in ASU 2018-11 (the “effective date method”), under which the effective date of January 1, 2019, is also the date of initial application.

See the updated Leases accounting policy disclosed in Note 1 and the added disclosures in Note 7, Leases.

Beyond the policy, presentation and disclosure changes discussed, the following changes had direct impact to Net Income from the adoptions of Topic 842:

Capitalization of indirect internal non-contingent lease costs and legal leasing costs are no longer permitted upon the adoption of this standard, which is resulting in an increase to Total operating expenses in the Consolidated Statements of Operations.

Previous capitalization of internal leasing costs was $6.5 million and $10.4 million during the years ended December 31, 2018 and 2017, respectively.

Previous capitalization of internal legal costs was $1.6 million and $1.2 million during the years ended December 31, 2018 and 2017, respectively, including our pro rata share recognized through Equity in income of investments in real estate partnerships.