XML 25 R15.htm IDEA: XBRL DOCUMENT
v3.19.2

Note 7 - Leases | 6 Months Ended
--- | ---
Jun. 30, 2019
Notes to Financial Statements |
Lessee, Operating Leases [Text Block] | 7. Leases The Company adopted Topic 842, on January 1, 2019, and as a result, recorded a ROU asset of $106.0 million and a corresponding lease liability of $98.7 million (see Footnote 2 to the Notes to the Company’s Condensed Consolidated Financial Statements for further discussion on the adoption of Topic 842). As the lessee, the Company currently leases real estate space under noncancelable operating lease agreements for ground leases and administrative office leases. The Company’s leases have remaining lease terms ranging from less than 1 year to 53 years, some of which include options to extend the terms for up to an additional 75 years. The Company does not include any of its renewal options in its lease terms for calculating its lease liability as the renewal options allow the Company to maintain operational flexibility, and the Company is not reasonably certain it will exercise these renewal options at this time. The weighted-average remaining non-cancelable lease term for the Company’s operating leases was 21.5 years at June 30, 2019. The weighted-average discount rate was 6.62% at June 30, 2019. The Company’s operating lease liabilities are determined based on the estimated present value of the Company’s minimum lease payments under its lease agreements. The discount rate used to determine the lease liabilities is based on the estimated incremental borrowing rate on a lease by lease basis. When calculating the incremental borrowing rates, the Company utilized data from (i) its recent debt issuances, (ii) publicly available data for instruments with similar characteristics, (iii) observable mortgage rates and (iv) unlevered property yields and discount rates. The Company then applied adjustments to account for considerations related to term and security that may not be fully incorporated by the data sets. The components of the Company’s lease expense, which are included in rent expense and general and administrative expense on the Company’s Condensed Consolidated Statements of Income, were as follows (in thousands):
|  | Six Months End ed June 30, 2019 |
Lease cost: |  |  |  |
Operating lease cost |  | $ | 6,557 |
Variable lease cost |  |  | 804 |
Total lease cost |  | $ | 7,361 |
The future minimum lease payments to be paid under noncancelable operating leases in effect at June 30, 2019 and December 31, 2018, are as follows (in thousands):
Year End ing December 31, |  | As of June 30, 2019 |  |  | As of December 31, 2018 |
2019 |  | $ | 6,209 |  |  | $ | 12,206 |
2020 |  |  | 10,375 |  |  |  | 9,901 |
2021 |  |  | 9,858 |  |  |  | 9,716 |
2022 |  |  | 9,237 |  |  |  | 9,236 |
2023 |  |  | 9,250 |  |  |  | 8,936 |
Thereafter |  |  | 136,608 |  |  |  | 115,788 |
Total minimum lease payments |  | $ | 181,537 |  |  | $ | 165,783 |
Less imputed interest |  |  | (88,304 | ) |  |  |  |
Total operating lease liabilities |  | $ | 93,233 |  |  |  |  |
The future minimum revenues from rental properties under the terms of all noncancelable tenant operating leases in effect, assuming no new or renegotiated leases are executed for such premises, at June 30, 2019 and December 31, 2018, are as follows (in thousands):
Year End ing December 31, |  | As of June 30, 2019 |  |  | As of December 31, 2018 |
2019 |  | $ | 411,793 |  |  | $ | 816,409 |
2020 |  |  | 805,916 |  |  |  | 769,074 |
2021 |  |  | 733,053 |  |  |  | 690,678 |
2022 |  |  | 636,703 |  |  |  | 594,638 |
2023 |  |  | 536,045 |  |  |  | 492,631 |
Thereafter |  |  | 2,792,780 |  |  |  | 2,540,231 |
Total minimum revenues |  | $ | 5,916,290 |  |  | $ | 5,903,661 |

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration