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Leases (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Lease Income Types Relating to Lease Payments

The following table presents the lease income types relating to lease payments for residential and retail leases for the year ended December 31, 2019 (amounts in thousands):

	Year Ended December 31, 2019
Lease Income Type	Residential Leases		Retail Leases		Total
Residential and retail rent	$	2,414,201	$	71,988	$	2,486,189
Utility recoveries (RUBS income) (1)		67,659		917		68,576
Parking rent		37,557		348		37,905
Storage rent		3,745		71		3,816
Pet rent		11,617		—		11,617
Total lease revenue (2)	$	2,534,779	$	73,324	$	2,608,103

(1)	RUBS income primarily consists of variable payments representing the recovery of utility costs from residents.

(2)	Excludes other rental income of $92.6 million for the year ended December 31, 2019, which is accounted for under the revenue recognition standard discussed in Note 2.

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, 2019 (amounts in thousands):

	2019
Right-of-use assets:
Corporate office leases	$	41,596
Ground leases (finance)		57,982
Ground leases (operating)		413,196
Right-of-use assets	$	512,774
Lease liabilities:
Corporate office leases	$	43,105
Ground leases (finance)		23,239
Ground leases (operating)		264,990
Lease liabilities	$	331,334

Summary of Ground Lease Intangibles

The following table summarizes the Company’s ground lease intangibles as of December 31, 2019 and 2018 (amounts in thousands):

Description	2019			2018
Assets
Ground lease intangibles	$	189,518		$	191,918
Accumulated amortization		(29,861	)		(25,688	)
Ground lease intangible assets, net (1)	$	159,657		$	166,230

Liabilities
Ground lease intangibles	$	—		$	2,400
Accumulated amortization		—			(290	)
Ground lease intangible liabilities, net (1)	$	—		$	2,110

(1)	As of December 31, 2019, ground lease intangibles, net of accumulated amortization are included within the ROU assets on the consolidated balance sheets. As of December 31, 2018, the ground lease intangibles were included within other assets and other liabilities on the consolidated balance sheets.

Summary of the Effect of the Amortization for Ground Lease Intangibles

The following table provides a summary of the effect of the amortization for ground lease intangibles on the Company’s accompanying consolidated statements of operations and comprehensive income for the years ended December 31, 2019, 2018 and 2017 (amounts in thousands):

Description		Income Statement Location		2019				2018				2017
Ground lease intangible amortization		Property and Maintenance		$	(4,463	)		$	(4,463	)		$	(4,369	)

Summary of Aggregate Amortization for Ground Lease Intangibles

The following table provides a summary of the aggregate amortization for ground lease intangibles for each of the next five years (amounts in thousands):

		2020				2021				2022				2023				2024
Ground lease intangibles		$	(4,463	)		$	(4,463	)		$	(4,463	)		$	(4,463	)		$	(4,463	)

Summary of Quantitative Disclosures for Lessees

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

	Year Ended December 31, 2019
Lease cost:
Finance lease cost:
Amortization of right-of-use assets	$	—
Interest on lease liabilities (capitalized)		225
Operating lease cost:
Corporate office leases		3,937
Ground leases		22,198
Variable lease cost:
Corporate office leases		1,489
Ground leases		3,700
Total lease cost	$	31,549

	December 31, 2019
Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Investing cash flows from finance leases (capitalized)	$	34,922
Operating cash flows from operating leases:
Corporate office leases	$	5,494
Ground leases	$	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 (1)	19.7 years
Weighted-average remaining lease term – operating leases:
Corporate office leases	18.1 years
Ground leases	56.2 years
Weighted-average discount rate – finance leases		3.0	%
Weighted-average discount rate – operating leases:
Corporate office leases		3.2	%
Ground leases		5.0	%

(1)	The weighted-average remaining lease term – finance leases does not include the remaining term of a fully prepaid finance lease entered into during the year ended December 31, 2019.

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, 2019:

(Payments)/Receipts Due by Year (in thousands)
	2020			2021			2022			2023			2024			Thereafter			Total
Finance Leases:
Minimum Rent Payments (a)	$	(567	)	$	(578	)	$	(590	)	$	(601	)	$	(614	)	$	(33,850	)	$	(36,800	)
Operating Leases:
Minimum Rent Payments (a)	$	(16,914	)	$	(17,161	)	$	(16,907	)	$	(16,998	)	$	(17,330	)	$	(979,172	)	$	(1,064,482	)
Minimum Rent Receipts (b)	$	64,527		$	61,817		$	58,204		$	50,906		$	43,784		$	154,898		$	434,136

(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 retail 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, 2019 (amounts in thousands):

	2019
Total minimum rent payments	$	1,101,282
Less: Lease discount		769,948
Lease liabilities	$	331,334