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Leases | 12 Months Ended
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Dec. 31, 2024
Leases [Abstract] |
Leases | 7. Leases Lessor Accounting The Company is the lessor for its residential and non-residential leases and these leases are accounted for as operating leases under the lease standard. 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, 2024, 2023 and 2022 (amounts in thousands):
|  | December 31, 2024 |  |  | December 31, 2023 |  |  | December 31, 2022 |
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 |  | $ | 2,672,772 |  |  | $ | 63,889 |  |  | $ | 2,736,661 |  |  | $ | 2,588,499 |  |  | $ | 62,193 |  |  | $ | 2,650,692 |  |  | $ | 2,454,587 |  |  | $ | 63,995 |  |  | $ | 2,518,582 |
Utility recoveries (RUBS income) (1) |  |  | 93,021 |  |  |  | 954 |  |  |  | 93,975 |  |  |  | 86,628 |  |  |  | 906 |  |  |  | 87,534 |  |  |  | 81,140 |  |  |  | 844 |  |  |  | 81,984 |
Parking rent |  |  | 46,717 |  |  |  | 1,422 |  |  |  | 48,139 |  |  |  | 44,081 |  |  |  | 449 |  |  |  | 44,530 |  |  |  | 43,335 |  |  |  | 435 |  |  |  | 43,770 |
Other lease revenue, net (2) |  |  | (3,452 | ) |  |  | (1,518 | ) |  |  | (4,970 | ) |  |  | (9,317 | ) |  |  | (131 | ) |  |  | (9,448 | ) |  |  | (415 | ) |  |  | (61 | ) |  |  | (476 | )
Total lease revenue |  | $ | 2,809,058 |  |  | $ | 64,747 |  |  |  | 2,873,805 |  |  | $ | 2,709,891 |  |  | $ | 63,417 |  |  |  | 2,773,308 |  |  | $ | 2,578,647 |  |  | $ | 65,213 |  |  |  | 2,643,860 |
Parking revenue |  |  |  |  |  |  |  |  | 44,079 |  |  |  |  |  |  |  |  |  | 40,836 |  |  |  |  |  |  |  |  |  | 37,338 |
Other revenue |  |  |  |  |  |  |  |  | 62,224 |  |  |  |  |  |  |  |  |  | 59,820 |  |  |  |  |  |  |  |  |  | 53,982 |
Total other rental income (3) |  |  |  |  |  |  |  |  | 106,303 |  |  |  |  |  |  |  |  |  | 100,656 |  |  |  |  |  |  |  |  |  | 91,320 |
Rental income |  |  |  |  |  |  |  | $ | 2,980,108 |  |  |  |  |  |  |  |  | $ | 2,873,964 |  |  |  |  |  |  |  |  | $ | 2,735,180 |
(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), service fees, late fees 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. The following table presents residential accounts receivable and straight-line receivable balances for the Company’s properties as of December 31, 2024 and 2023 (amounts in thousands):
Balance Sheet (Other assets): |  | December 31, 2024 |  |  | December 31, 2023 |
Residential accounts receivable balances |  | $ | 15,152 |  |  | $ | 21,477 |
Allowance for doubtful accounts |  |  | (9,904 | ) |  |  | (15,846 | )
Net receivable balances |  | $ | 5,248 |  |  | $ | 5,631 |
Straight-line receivable balances |  | $ | 10,234 |  |  | $ | 9,183 |
The following table presents residential bad debt for the Company’s properties for the years ended December 31, 2024, 2023 and 2022 (amounts in thousands):
|  | December 31, |
Income Statement (Rental income): |  | 2024 |  |  | 2023 |  |  | 2022 |
Bad debt, net (1) |  | $ | 33,256 |  |  | $ | 38,117 |  |  | $ | 26,570 |
% of residential rental income |  |  | 1.2 | % |  |  | 1.4 | % |  |  | 1.0 | %
(1) Bad debt, net benefited from additional resident payments due to governmental rental assistance programs of approximately $1.6 million, $2.8 million and $34.7 million for the years ended December 31, 2024, 2023 and 2022, respectively. Lessee Accounting The Company is the lessee under various corporate office leases, ground leases and parking leases for which the Company recognizes right-of-use (“ROU”) assets and related lease liabilities. The Company's corporate office lease expiration dates range from 2025 through 2042 (inclusive of applicable extension options) while ground leases and parking leases range from 2042 through 2118 (inclusive of applicable purchase options). The Company owns the building and improvements above its ground leases. During the year ended December 31, 2024, the Company acquired below market long-term ground and parking leases, each fully prepaid at $1 and expiring in 2110, in connection with an apartment property acquisition as describ ed in Note 4 and recorded a lease intangible asset of approximately $12.7 million, which is included in right-of-use assets on the consolidated balance sheets. During the year ended December 31, 2023, the Company entered into new corporate office leases which are being accounted for as operating leases and recorded initial lease liabilities and ROU assets of approximately $7.1 million. The following table presents the Company’s ROU assets and related lease liabilities as of December 31, 2024 and 2023 (amounts in thousands):
Description |  | Balance Sheet Location |  | 2024 |  |  | 2023 |
Assets |  |  |  |  |  |  |  |
Operating leases |  | Right-of-use assets |  | $ | 363,095 |  |  | $ | 363,175 |
Finance leases |  | Right-of-use assets |  |  | 92,350 |  |  |  | 94,091 |
Total |  |  |  | $ | 455,445 |  |  | $ | 457,266 |
Liabilities |  |  |  |  |  |  |  |
Operating leases |  | Lease liabilities |  | $ | 237,769 |  |  | $ | 243,497 |
Finance leases |  | Lease liabilities |  |  | 67,128 |  |  |  | 68,143 |
Total |  |  |  | $ | 304,897 |  |  | $ | 311,640 |
Additional disclosures The following tables illustrate the quantitative disclosures for lessees as of and for the years ended December 31, 2024, 2023 and 2022 (amounts in thousands):
|  | December 31, 2024 |  |  | December 31, 2023 |  |  | December 31, 2022 |
Lease cost: |  |  |  |  |  |  |  |  |
Finance lease cost: |  |  |  |  |  |  |  |  |
Amortization of right-of-use assets (capitalized) |  | $ | — |  |  | $ | 146 |  |  | $ | 351 |
Amortization of right-of-use assets (expensed) |  |  | 1,945 |  |  |  | 1,781 |  |  |  | 1,391 |
Interest on lease liabilities (expensed) |  |  | 1,865 |  |  |  | 1,886 |  |  |  | 1,904 |
Operating lease cost |  |  | 23,074 |  |  |  | 22,791 |  |  |  | 22,131 |
Variable lease cost |  |  | 6,447 |  |  |  | 4,937 |  |  |  | 4,772 |
Total lease cost |  | $ | 33,331 |  |  | $ | 31,541 |  |  | $ | 30,549 |
|  | December 31, 2024 |  |  | December 31, 2023 |  |  | December 31, 2022 |
Other information: |  |  |  |  |  |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |  |
Financing cash flows from finance leases |  | $ | 3,084 |  |  | $ | 2,847 |  |  | $ | 2,463 |
Operating cash flows from operating leases |  | $ | 21,046 |  |  | $ | 20,202 |  |  | $ | 19,154 |
Weighted-average remaining lease term – finance leases |  | 22.0 years |  |  | 23.1 years |  |  | 24.1 years |
Weighted-average remaining lease term – operating leases |  | 53.2 years |  |  | 53.0 years |  |  | 54.5 years |
Weighted-average discount rate – finance leases |  |  | 2.8 | % |  |  | 2.8 | % |  |  | 2.8 | %
Weighted-average discount rate – operating leases |  |  | 4.9 | % |  |  | 4.9 | % |  |  | 4.8 | %
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, 2024:
(Payments)/Receipts Due by Year (in thousands) |
|  | 2025 |  |  | 2026 |  |  | 2027 |  |  | 2028 |  |  | 2029 |  |  | Thereafter |  |  | Total |
Finance Leases: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Minimum Rent Payments |  | $ | (2,946 | ) |  | $ | (2,959 | ) |  | $ | (2,971 | ) |  | $ | (2,984 | ) |  | $ | (2,998 | ) |  | $ | (79,256 | ) |  | $ | (94,114 | )
Operating Leases: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Minimum Rent Payments |  | $ | (15,817 | ) |  | $ | (15,553 | ) |  | $ | (15,651 | ) |  | $ | (15,794 | ) |  | $ | (15,670 | ) |  | $ | (789,790 | ) |  | $ | (868,275 | )
Minimum Rent Receipts (a) |  | $ | 54,235 |  |  | $ | 51,141 |  |  | $ | 47,845 |  |  | $ | 41,973 |  |  | $ | 33,317 |  |  | $ | 112,157 |  |  | $ | 340,668 |
(a) Excludes residential leases due to their short-term nature. The following table provides a reconciliation of lease liabilities from our undiscounted cash flows for minimum rent payments as of December 31, 2024 (amounts in thousands):
|  | Operating Leases |  |  | Finance Leases |
Total minimum rent payments |  | $ | 868,275 |  |  | $ | 94,114 |
Less: Lease discount |  |  | (630,506 | ) |  |  | (26,986 | )
Lease liabilities |  | $ | 237,769 |  |  | $ | 67,128 |

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