LEASES (Tables)

6 Months Ended

Jun. 30, 2021

Lessee - Future minimum lease payments and total operating lease liabilities

Future minimum lease payments and total operating lease liabilities from our ground leases as of June 30, 2021 are as follows (dollars in thousands):


	Ground Leases
2021	$	6,221
2022		12,442
2023		12,442
2024		12,442
2025		12,442
Thereafter		442,778
Total future minimum lease payments (undiscounted)		498,767
Difference between future undiscounted cash flows and discounted cash flows		(304,709)
Total operating lease liabilities (discounted)	$	194,058

Lessee - components of operating lease expenses

The components of operating lease expenses were as follows (dollars in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Lease expense:
Contractual lease expense	$	3,230	$	3,216	$	6,460	$	6,386
Variable lease expense (a)		27		44		56		87
Total operating lease expense (b)(c)	$	3,257	$	3,260	$	6,516	$	6,473

(a)

Variable lease expense includes adjustments such as changes in the consumer price index and payments based on a percentage of income of the lessee.

(b)

Lease expense is reported within the line item Other operating expenses on the Consolidated Statements of Operations.

(c)

For the six months ended June 30, 2021, Operating lease right-of-use assets and Operating lease liabilities amortized by $1.7 million and $1.5 million, respectively. For the six months ended June 30, 2020, Operating lease right-of-use assets and Operating lease liabilities amortized by $1.6 million and $1.5 million, respectively. Due to the net impact of the amortization, the Company recorded $0.1 million and $0.1 million of total operating lease expense during the three months ended June 30, 2021 and 2020, respectively, and $0.2 million and $0.2 million of total operating lease expense during the six months ended June 30, 2021 and 2020, respectively.

Lessor - Future minimum lease payments

Future minimum lease payments from our retail and commercial leases as of June 30, 2021 are as follows (dollars in thousands):


	Retail and Commercial Leases
2021	$	12,256
2022		24,675
2023		22,817
2024		20,469
2025		17,042
Thereafter		73,038
Total future minimum lease payments (a)	$	170,297

(a)We have excluded our apartment home leases from this table as our apartment home leases generally have initial terms of 12 months or less.