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Leases | 12 Months Ended
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Dec. 31, 2021
Leases [Abstract] |
Leases of Lessor Disclosure [Text Block] | 4. Leases The Company must estimate the collectability of its accrued rent and accounts receivable balances related to lease revenue. When evaluating the collectability of tenants’ accrued rent and accounts receivable balances, management considers tenant creditworthiness, current economic trends, including the impact of COVID-19 on tenants’ businesses, and changes in tenants’ payment patterns, on a lease-by-lease basis. During the years ended December 31, 2021 and 2020, the Company wrote off approximately $1.3 million and $90.3 million, respectively, related to accrued rent, net balances and accounts receivable, net balances. The write-offs were for tenants, primarily in the retail and co-working sectors, that either terminated their leases or for which the Company determined their accrued rent and/or accounts receivable balances were no longer probable of collection. In April 2020, the FASB staff issued a question and answer document (“Lease Modification Q & A”) related to the application of lease accounting guidance for lease concessions, in accordance with ASC 842, as a result of COVID-19. The Company did not utilize the guidance provided in the Lease Modification Q & A and instead elected to continue to account for the COVID-19 lease concessions on a lease-by-lease basis in accordance with the existing lease modification accounting framework. Lessor The following table summarizes the components of lease revenue recognized during the years ended December 31, 2021, 2020 and 2019 included within the Company's Consolidated Statements of Operations (in thousands):
|  | Year ended December 31,
Lease Revenue |  | 2021 |  | 2020 |  | 2019
Fixed contractual payments |  | $ | 2,319,362 |  |  | $ | 2,211,915 |  |  | $ | 2,261,260 |
Variable lease payments |  | 433,652 |  |  | 434,346 |  |  | 496,754 |
|  | $ | 2,753,014 |  |  | $ | 2,646,261 |  |  | $ | 2,758,014 |
The future contractual lease payments to be received (excluding operating expense reimbursements and percentage rent) by the Company as of December 31, 2021, under non-cancelable operating leases which expire on various dates through 2049 (in thousands):
Years Ending December 31, |
2022 | $ | 2,252,034 |
2023 | 2,251,287 |
2024 | 2,138,772 |
2025 | 2,012,975 |
2026 | 1,877,563 |
Thereafter | 12,215,114 |
No single tenant represented more than 10.0% of the Company’s total lease revenue for the years ended December 31, 2021, 2020 and 2019.
Lessee, Operating Leases | Lessee The Company has four non-cancelable ground lease obligations, as lessee, which were classified as operating leases, with various initial term expiration dates through 2114 for the years ended December 31, 2021, 2020 and 2019. The Company recognizes ground rent expense on a straight-line basis over the term of the respective ground lease agreements. As of December 31, 2021, none of the amounts disclosed below for these ground leases contain variable payments, extension options or residual value guarantees. The Company has four finance lease obligations with various initial term expiration dates through 2094 for the years ended December 31, 2021, 2020 and 2019. The following table provides lease cost information for the Company’s operating and finance leases for the years ended December 31, 2021, 2020 and 2019 (in thousands):
|  | Year ended December 31,
Lease costs |  | 2021 |  | 2020 |  | 2019
Operating lease costs |  | $ | 13,151 |  |  | $ | 13,948 |  |  | $ | 14,573 |
Finance lease costs |  |  |  |  |  |
Amortization of right of use asset (1) |  | $ | 547 |  |  | $ | 56 |  |  | $ | 29 |
Interest on lease liabilities (2) |  | $ | 2,471 |  |  | $ | 583 |  |  | $ | 47 |
_______________ (1)The finance leases relate to either land, buildings or assets that remain in development. For land leases classified as finance leases because of a purchase option that the Company views as an economic incentive, the Company follows its existing policy and does not depreciate land because it is assumed to have an indefinite life. For all other finance leases, the Company would amortize the right of use asset over the shorter of the useful life of the asset or the lease term. If the finance lease relates to a property under development, the amortization of the right of use asset may be eligible for capitalization. For assets under development, depreciation may commence once the asset is placed in-service and depreciation would be recognized in accordance with the Company’s policy. (2)Two, three and three of the finance leases relate to assets under development for all or a portion of the years ended December 31, 2021, December 31, 2020 and December 31, 2019, respectively, and as such, a portion of the interest amount was capitalized. The following table provides other quantitative information for the Company’s operating and finance leases as of December 31, 2021 and December 31, 2020:
| December 31, 2021 |  | December 31, 2020
Other information |  |  |
Weighted-average remaining lease term (in years) |  |  |
Operating leases | 50 |  | 51
Finance leases | 69 |  | 70
Weighted-average discount rate |  |  |
Operating leases | 5.7 | % |  | 5.7 | %
Finance leases | 6.2 | % |  | 6.2 | %
The following table provides a maturity analysis for the Company’s lease liabilities related to its operating and finance leases as of December 31, 2021 (in thousands):
| Operating |  | Finance
2022 | $ | 19,623 |  |  | $ | 8,762 |
2023 | 25,333 |  |  | 10,826 |
2024 (1) | 10,085 |  |  | 48,605 |
2025 | 10,307 |  |  | 9,971 |
2026 | 10,100 |  |  | 10,166 |
Thereafter | 538,801 |  |  | 1,363,011 |
Total lease payments | 614,249 |  |  | 1,451,341 |
Less: Interest portion | (409,688) |  |  | (1,206,920) |
Present value of lease payments | $ | 204,561 |  |  | $ | 244,421 |
_______________ (1)Finance lease payments in 2024 include approximately $38.7 million related to a purchase option that the Company is reasonably certain it will exercise. The following table provides a maturity analysis for the Company’s lease liabilities related to its operating and finance leases as of December 31, 2020 (in thousands):
| Operating |  | Finance
2021 | $ | 25,092 |  |  | $ | 5,896 |
2022 | 18,020 |  |  | 10,206 |
2023 | 10,262 |  |  | 9,701 |
2024 (1) | 9,277 |  |  | 48,518 |
2025 | 9,476 |  |  | 9,971 |
Thereafter | 548,478 |  |  | 1,373,177 |
Total lease payments | 620,605 |  |  | 1,457,469 |
Less: Interest portion | (418,892) |  |  | (1,220,977) |
Present value of lease payments | $ | 201,713 |  |  | $ | 236,492 |
_______________ (1)Finance lease payments in 2024 include approximately $38.7 million related to a purchase option that the Company is reasonably certain it will exercise. Ground Lease On May 19, 2021, the Company amended its ground lease at Sumner Square in Washington, DC to extend the term for an additional 15 years. Prior to the amendment, the ground lease was scheduled to expire on August 10, 2066. The ground lease will now expire on August 9, 2081. The amended lease required the Company to pay $23.0 million of rent in 2021 and requires the Company’s remaining obligation of approximately $4.0 million be used to fund certain operation and maintenance costs incurred by the government with respect to the Sumner School for the next five years, with no payments thereafter. The Company’s incremental borrowing rate is 3.95% per annum. The net present value of the total ground lease payments is approximately $26.7 million. The Company continues to classify this ground lease as an operating lease. As a result, the Company recorded a Right-of-Use Assets - Operating Leases and Lease Liabilities - Operating Leases of approximately $27.1 million and $26.7 million, respectively, on its Consolidated Balance Sheet. On July 1, 2021, the Company made the $23.0 million payment. As of December 31, 2021, the lease liability within Lease Liabilities - Operating Leases on the Consolidated Balance Sheets is approximately $3.4 million. The Sumner Square ground lease had operating lease costs of approximately $0.7 million, $1.4 million and $1.5 million during the years ended December 31, 2021, 2020 and 2019, respectively. Sumner Square is an approximately 210,000 net rentable square foot Class A office building. The following table provides a maturity analysis for the Company’s lease liabilities related to its Sumner Square operating lease as of May 19, 2021 (in thousands):
| Operating
Period from May 19, 2021 through December 31, 2021 | $ | 23,599 |
2022 | 761 |
2023 | 784 |
2024 | 808 |
2025 | 832 |
2026 | 422 |
Total lease payments | 27,206 |
Less: Interest portion | (536) |
Present value of lease payments | $ | 26,670 |

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- 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
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