XML 29 R15.htm IDEA: XBRL DOCUMENT
v3.20.4

Leases | 12 Months Ended
--- | ---
Dec. 31, 2020
Leases [Abstract] |
Leases | Leases Lease Income The following table summarizes the Company’s lease income, excluding discontinued operations (in thousands):
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
Fixed income from operating leases | $ | 943,638 |  |  | $ | 853,545 |  |  | $ | 829,774 |
Variable income from operating leases | 238,470 |  |  | 215,957 |  |  | 190,574 |
Interest income from direct financing leases | 9,720 |  |  | 16,666 |  |  | 16,349 |
Direct Financing Leases Net investment in DFLs consists of the following (dollars in thousands):
| December 31,
| 2020 |  | 2019
Present value of minimum lease payments receivable | $ | 9,804 |  |  | $ | 19,138 |
Present value of estimated residual value | 44,706 |  |  | 84,604 |
Less deferred selling profits | (9,804) |  |  | (19,138) |
Net investment in direct financing leases | $ | 44,706 |  |  | $ | 84,604 |
Properties subject to direct financing leases | 1 |  |  | 2 |
Direct Financing Lease Internal Ratings The following table summarizes the Company’s internal ratings for DFLs at December 31, 2020 (dollars in thousands):
|  |  |  |  |  | Internal Ratings
Segment |  | Carrying Amount |  | Percentage of DFL Portfolio |  | Performing DFLs |  | Watch List DFLs |  | Workout DFLs
Medical office |  | $ | 44,706 |  |  | 100 |  | $ | 44,706 |  |  | — |  |  | — |
|  | $ | 44,706 |  |  | 100 |  | $ | 44,706 |  |  | $ | — |  |  | $ | — |
2020 Direct Financing Lease Sale During the first quarter of 2020, the Company sold a hospital under a DFL for $82 million and recognized a gain on sale of $42 million, which is included in other income (expense), net. 2019 Direct Financing Lease Conversion During the first quarter of 2019, the Company converted a DFL portfolio of 14 senior housing triple-net properties, previously on “Watch List” status, to a RIDEA structure, requiring the Company to recognize net assets equal to the lower of the net assets’ fair value or the carrying value of the net investment in the DFL. As a result, the Company derecognized the $351 million carrying value of the net investment in DFL related to the 14 properties and recognized a combination of net real estate ($331 million) and net intangibles assets ($20 million) for the same aggregate amount, with no gain or loss recognized. As a result of the transaction, the 14 properties were transferred from the senior housing triple-net segment to the SHOP segment during the first quarter of 2019. 2019 Direct Financing Lease Sale During the second quarter of 2019, the Company entered into agreements to sell 13 senior housing facilities under DFLs (the “DFL Sale Portfolio”) for $274 million. Upon entering into the agreements, the Company recognized an allowance for DFL losses and related impairment charge of $10 million (recognized in income (loss) from discontinued operations) to write-down the carrying value of the DFL Sale Portfolio to its fair value. The fair value of the DFL Sale Portfolio was based upon the agreed upon sale price, less estimated costs to sell, which was considered to be a Level 2 measurement within the fair value hierarchy. In conjunction with the entering into agreements to sell the DFL Sale Portfolio, the Company placed the portfolio on nonaccrual status and began recognizing income equal to the amount of cash received. The Company completed the sale of the DFL Sale Portfolio in September 2019. For the DFL Sale Portfolio, during the years ended December 31, 2019 and 2018, income from DFLs was $17 million and $24 million (recognized in income (loss) from discontinued operations), respectively, and cash payments received were $16 million and $20 million, respectively. Direct Financing Lease Receivable Maturities The following table summarizes future minimum lease payments contractually due under DFLs at December 31, 2020 (in thousands):
Year |  | Amount
2021 |  | $ | 8,601 |
2022 |  | 1,203 |
2023 |  | — |
2024 |  | — |
2025 |  | — |
Thereafter |  | — |
Undiscounted minimum lease payments receivable |  | 9,804 |
Less: imputed interest |  | — |
Present value of minimum lease payments receivable |  | $ | 9,804 |
Residual Value Risk Quarterly, the Company reviews the estimated unguaranteed residual value of assets under DFLs to determine if there have been any material changes compared to the prior quarter. As needed, the Company and/or the related tenants will invest necessary funds to maintain the residual value of each asset. Operating Leases Future Minimum Rents The following table summarizes future minimum lease payments to be received, excluding future minimum lease payments from assets classified as discontinued operations, from tenants under non-cancelable operating leases as of December 31, 2020 (in thousands):
Year |  | Amount(1)
2021 |  | $ | 969,519 |
2022 |  | 929,437 |
2023 |  | 869,628 |
2024 |  | 774,641 |
2025 |  | 669,289 |
Thereafter |  | 2,431,032 |
|  | $ | 6,643,546 |
_______________________________________ (1)Excludes future minimum lease payments from assets classified as discontinued operations. Tenant Purchase Options Certain leases, including DFLs, contain purchase options whereby the tenant may elect to acquire the underlying real estate. Annualized base rent from leases subject to purchase options, summarized by the year the purchase options are exercisable, excluding leases related to assets classified as discontinued operations, are as follows (dollars in thousands):
Year |  | Annualized Base Rent(1)(2) |  | Number of Properties
2021 |  | $ | 29,394 |  |  | 12 |
2022 |  | 11,187 |  |  | 3 |
2023 |  | — |  |  | — |
2024 |  | 3,190 |  |  | 1 |
2025 |  | 9,065 |  |  | 13 |
Thereafter |  | 5,815 |  |  | 2 |
|  | $ | 58,651 |  |  | 31 |
_______________________________________ (1)Represents the most recent month’s base rent including additional rent floors and cash income from DFLs annualized for 12 months. Base rent does not include tenant recoveries, additional rents in excess of floors, and non-cash revenue adjustments (i.e., straight-line rents, amortization of market lease intangibles, DFL non-cash interest and deferred revenues). (2)Excludes tenant purchase options related to assets classified as discontinued operations. During the fourth quarter of 2019, one of the Company's tenants exercised its option to acquire from the Company an acute care hospital and adjacent land parcel located in Irvine, California for $226 million. The sale is scheduled to close during the first half of 2021. The annualized base rent associated with the assets covered by this purchase option is included in the table above for 2021. Lease Costs The following tables provide information regarding the Company’s leases to which it is the lessee, such as corporate offices and ground leases, excluding lease costs related to assets classified as discontinued operations (dollars in thousands):
|  | Year Ended December 31,
Lease Expense Information: |  | 2020 |  | 2019 |  | 2018
Total lease expense(1) |  | $ | 13,601 |  |  | $ | 11,852 |  |  | $ | 10,569 |
_______________________________________ (1)Lease expense related to corporate assets is included in general and administrative expenses and lease expense related to ground leases is included within operating expenses in the Company’s consolidated statements of operations.
|  | Year Ended December 31,
Supplemental Cash Flow Information: |  | 2020 |  | 2019 |  | 2018
Cash paid for amounts included in the measurement of lease liability: |  |  |  |  |  |
Operating cash flows for operating leases |  | $ | 9,940 |  |  | $ | 8,158 |  |  | $ | 7,326 |
Right-of-use asset obtained in exchange for new lease liability: |  |  |  |  |  |
Operating leases |  | $ | 32,208 |  |  | $ | 5,733 |  |  | $ | — |
Weighted Average Lease Term and Discount Rate: |  | December 31, 2020 |  | December 31, 2019
Weighted average remaining lease term (years): |  |  |  |
Operating leases |  | 57 |  | 51
Weighted average discount rate: |  |  |  |
Operating leases |  | 4.26 | % |  | 4.36 | %
The following table summarizes future minimum lease payments under non-cancelable ground and other operating leases included in the Company’s lease liability, excluding future minimum lease payments related to assets classified as held for sale or discontinued operations, as of December 31, 2020 (in thousands):
Year |  | Amount(1)
2021 |  | $ | 11,106 |
2022 |  | 11,262 |
2023 |  | 11,445 |
2024 |  | 10,246 |
2025 |  | 8,886 |
Thereafter |  | 469,453 |
Undiscounted minimum lease payments included in the lease liability |  | 522,398 |
Less: imputed interest |  | (342,503) |
Present value of lease liability |  | $ | 179,895 |
_______________________________________ (1)Excludes future minimum lease payments under non-cancelable ground and other operating leases from assets classified as discontinued operations. Depreciation Expense While the Company leases the majority of its property, plant, and equipment to various tenants under operating leases and DFLs, in certain situations, the Company owns and operates certain property, plant, and equipment for general corporate purposes. Corporate assets are recorded within other assets, net within the Company’s consolidated balance sheets and depreciation expense for those assets is recorded in general and administrative expenses in the Company’s consolidated statements of operations. Included within other assets, net as of December 31, 2020 and December 31, 2019 is $6 million and $4 million, respectively, of accumulated depreciation related to corporate assets. Included within general and administrative expenses for the years ended December 31, 2020, 2019, and 2018 is $2 million, $2 million and $4 million, respectively, of depreciation expense related to corporate assets. COVID-19 Rent Deferrals During the second and third quarters of 2020, the Company agreed to defer rent from certain tenants in the medical office segment, with the requirement that all deferred rent be repaid by the end of 2020. Under this program, through December 31, 2020, approximately $6 million of rent was deferred for the medical office segment, substantially all of which had been collected as of December 31, 2020. Additionally, through December 31, 2020, the Company granted approximately $1 million of rent deferrals to certain tenants in the life science segment, all of which had been collected as of December 31, 2020. The rent deferrals granted do not impact the pattern of revenue recognition or amount of revenue recognized (refer to Note 2 for additional information).
Leases | Leases Lease Income The following table summarizes the Company’s lease income, excluding discontinued operations (in thousands):
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
Fixed income from operating leases | $ | 943,638 |  |  | $ | 853,545 |  |  | $ | 829,774 |
Variable income from operating leases | 238,470 |  |  | 215,957 |  |  | 190,574 |
Interest income from direct financing leases | 9,720 |  |  | 16,666 |  |  | 16,349 |
Direct Financing Leases Net investment in DFLs consists of the following (dollars in thousands):
| December 31,
| 2020 |  | 2019
Present value of minimum lease payments receivable | $ | 9,804 |  |  | $ | 19,138 |
Present value of estimated residual value | 44,706 |  |  | 84,604 |
Less deferred selling profits | (9,804) |  |  | (19,138) |
Net investment in direct financing leases | $ | 44,706 |  |  | $ | 84,604 |
Properties subject to direct financing leases | 1 |  |  | 2 |
Direct Financing Lease Internal Ratings The following table summarizes the Company’s internal ratings for DFLs at December 31, 2020 (dollars in thousands):
|  |  |  |  |  | Internal Ratings
Segment |  | Carrying Amount |  | Percentage of DFL Portfolio |  | Performing DFLs |  | Watch List DFLs |  | Workout DFLs
Medical office |  | $ | 44,706 |  |  | 100 |  | $ | 44,706 |  |  | — |  |  | — |
|  | $ | 44,706 |  |  | 100 |  | $ | 44,706 |  |  | $ | — |  |  | $ | — |
2020 Direct Financing Lease Sale During the first quarter of 2020, the Company sold a hospital under a DFL for $82 million and recognized a gain on sale of $42 million, which is included in other income (expense), net. 2019 Direct Financing Lease Conversion During the first quarter of 2019, the Company converted a DFL portfolio of 14 senior housing triple-net properties, previously on “Watch List” status, to a RIDEA structure, requiring the Company to recognize net assets equal to the lower of the net assets’ fair value or the carrying value of the net investment in the DFL. As a result, the Company derecognized the $351 million carrying value of the net investment in DFL related to the 14 properties and recognized a combination of net real estate ($331 million) and net intangibles assets ($20 million) for the same aggregate amount, with no gain or loss recognized. As a result of the transaction, the 14 properties were transferred from the senior housing triple-net segment to the SHOP segment during the first quarter of 2019. 2019 Direct Financing Lease Sale During the second quarter of 2019, the Company entered into agreements to sell 13 senior housing facilities under DFLs (the “DFL Sale Portfolio”) for $274 million. Upon entering into the agreements, the Company recognized an allowance for DFL losses and related impairment charge of $10 million (recognized in income (loss) from discontinued operations) to write-down the carrying value of the DFL Sale Portfolio to its fair value. The fair value of the DFL Sale Portfolio was based upon the agreed upon sale price, less estimated costs to sell, which was considered to be a Level 2 measurement within the fair value hierarchy. In conjunction with the entering into agreements to sell the DFL Sale Portfolio, the Company placed the portfolio on nonaccrual status and began recognizing income equal to the amount of cash received. The Company completed the sale of the DFL Sale Portfolio in September 2019. For the DFL Sale Portfolio, during the years ended December 31, 2019 and 2018, income from DFLs was $17 million and $24 million (recognized in income (loss) from discontinued operations), respectively, and cash payments received were $16 million and $20 million, respectively. Direct Financing Lease Receivable Maturities The following table summarizes future minimum lease payments contractually due under DFLs at December 31, 2020 (in thousands):
Year |  | Amount
2021 |  | $ | 8,601 |
2022 |  | 1,203 |
2023 |  | — |
2024 |  | — |
2025 |  | — |
Thereafter |  | — |
Undiscounted minimum lease payments receivable |  | 9,804 |
Less: imputed interest |  | — |
Present value of minimum lease payments receivable |  | $ | 9,804 |
Residual Value Risk Quarterly, the Company reviews the estimated unguaranteed residual value of assets under DFLs to determine if there have been any material changes compared to the prior quarter. As needed, the Company and/or the related tenants will invest necessary funds to maintain the residual value of each asset. Operating Leases Future Minimum Rents The following table summarizes future minimum lease payments to be received, excluding future minimum lease payments from assets classified as discontinued operations, from tenants under non-cancelable operating leases as of December 31, 2020 (in thousands):
Year |  | Amount(1)
2021 |  | $ | 969,519 |
2022 |  | 929,437 |
2023 |  | 869,628 |
2024 |  | 774,641 |
2025 |  | 669,289 |
Thereafter |  | 2,431,032 |
|  | $ | 6,643,546 |
_______________________________________ (1)Excludes future minimum lease payments from assets classified as discontinued operations. Tenant Purchase Options Certain leases, including DFLs, contain purchase options whereby the tenant may elect to acquire the underlying real estate. Annualized base rent from leases subject to purchase options, summarized by the year the purchase options are exercisable, excluding leases related to assets classified as discontinued operations, are as follows (dollars in thousands):
Year |  | Annualized Base Rent(1)(2) |  | Number of Properties
2021 |  | $ | 29,394 |  |  | 12 |
2022 |  | 11,187 |  |  | 3 |
2023 |  | — |  |  | — |
2024 |  | 3,190 |  |  | 1 |
2025 |  | 9,065 |  |  | 13 |
Thereafter |  | 5,815 |  |  | 2 |
|  | $ | 58,651 |  |  | 31 |
_______________________________________ (1)Represents the most recent month’s base rent including additional rent floors and cash income from DFLs annualized for 12 months. Base rent does not include tenant recoveries, additional rents in excess of floors, and non-cash revenue adjustments (i.e., straight-line rents, amortization of market lease intangibles, DFL non-cash interest and deferred revenues). (2)Excludes tenant purchase options related to assets classified as discontinued operations. During the fourth quarter of 2019, one of the Company's tenants exercised its option to acquire from the Company an acute care hospital and adjacent land parcel located in Irvine, California for $226 million. The sale is scheduled to close during the first half of 2021. The annualized base rent associated with the assets covered by this purchase option is included in the table above for 2021. Lease Costs The following tables provide information regarding the Company’s leases to which it is the lessee, such as corporate offices and ground leases, excluding lease costs related to assets classified as discontinued operations (dollars in thousands):
|  | Year Ended December 31,
Lease Expense Information: |  | 2020 |  | 2019 |  | 2018
Total lease expense(1) |  | $ | 13,601 |  |  | $ | 11,852 |  |  | $ | 10,569 |
_______________________________________ (1)Lease expense related to corporate assets is included in general and administrative expenses and lease expense related to ground leases is included within operating expenses in the Company’s consolidated statements of operations.
|  | Year Ended December 31,
Supplemental Cash Flow Information: |  | 2020 |  | 2019 |  | 2018
Cash paid for amounts included in the measurement of lease liability: |  |  |  |  |  |
Operating cash flows for operating leases |  | $ | 9,940 |  |  | $ | 8,158 |  |  | $ | 7,326 |
Right-of-use asset obtained in exchange for new lease liability: |  |  |  |  |  |
Operating leases |  | $ | 32,208 |  |  | $ | 5,733 |  |  | $ | — |
Weighted Average Lease Term and Discount Rate: |  | December 31, 2020 |  | December 31, 2019
Weighted average remaining lease term (years): |  |  |  |
Operating leases |  | 57 |  | 51
Weighted average discount rate: |  |  |  |
Operating leases |  | 4.26 | % |  | 4.36 | %
The following table summarizes future minimum lease payments under non-cancelable ground and other operating leases included in the Company’s lease liability, excluding future minimum lease payments related to assets classified as held for sale or discontinued operations, as of December 31, 2020 (in thousands):
Year |  | Amount(1)
2021 |  | $ | 11,106 |
2022 |  | 11,262 |
2023 |  | 11,445 |
2024 |  | 10,246 |
2025 |  | 8,886 |
Thereafter |  | 469,453 |
Undiscounted minimum lease payments included in the lease liability |  | 522,398 |
Less: imputed interest |  | (342,503) |
Present value of lease liability |  | $ | 179,895 |
_______________________________________ (1)Excludes future minimum lease payments under non-cancelable ground and other operating leases from assets classified as discontinued operations. Depreciation Expense While the Company leases the majority of its property, plant, and equipment to various tenants under operating leases and DFLs, in certain situations, the Company owns and operates certain property, plant, and equipment for general corporate purposes. Corporate assets are recorded within other assets, net within the Company’s consolidated balance sheets and depreciation expense for those assets is recorded in general and administrative expenses in the Company’s consolidated statements of operations. Included within other assets, net as of December 31, 2020 and December 31, 2019 is $6 million and $4 million, respectively, of accumulated depreciation related to corporate assets. Included within general and administrative expenses for the years ended December 31, 2020, 2019, and 2018 is $2 million, $2 million and $4 million, respectively, of depreciation expense related to corporate assets. COVID-19 Rent Deferrals During the second and third quarters of 2020, the Company agreed to defer rent from certain tenants in the medical office segment, with the requirement that all deferred rent be repaid by the end of 2020. Under this program, through December 31, 2020, approximately $6 million of rent was deferred for the medical office segment, substantially all of which had been collected as of December 31, 2020. Additionally, through December 31, 2020, the Company granted approximately $1 million of rent deferrals to certain tenants in the life science segment, all of which had been collected as of December 31, 2020. The rent deferrals granted do not impact the pattern of revenue recognition or amount of revenue recognized (refer to Note 2 for additional information).
Leases | Leases Lease Income The following table summarizes the Company’s lease income, excluding discontinued operations (in thousands):
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
Fixed income from operating leases | $ | 943,638 |  |  | $ | 853,545 |  |  | $ | 829,774 |
Variable income from operating leases | 238,470 |  |  | 215,957 |  |  | 190,574 |
Interest income from direct financing leases | 9,720 |  |  | 16,666 |  |  | 16,349 |
Direct Financing Leases Net investment in DFLs consists of the following (dollars in thousands):
| December 31,
| 2020 |  | 2019
Present value of minimum lease payments receivable | $ | 9,804 |  |  | $ | 19,138 |
Present value of estimated residual value | 44,706 |  |  | 84,604 |
Less deferred selling profits | (9,804) |  |  | (19,138) |
Net investment in direct financing leases | $ | 44,706 |  |  | $ | 84,604 |
Properties subject to direct financing leases | 1 |  |  | 2 |
Direct Financing Lease Internal Ratings The following table summarizes the Company’s internal ratings for DFLs at December 31, 2020 (dollars in thousands):
|  |  |  |  |  | Internal Ratings
Segment |  | Carrying Amount |  | Percentage of DFL Portfolio |  | Performing DFLs |  | Watch List DFLs |  | Workout DFLs
Medical office |  | $ | 44,706 |  |  | 100 |  | $ | 44,706 |  |  | — |  |  | — |
|  | $ | 44,706 |  |  | 100 |  | $ | 44,706 |  |  | $ | — |  |  | $ | — |
2020 Direct Financing Lease Sale During the first quarter of 2020, the Company sold a hospital under a DFL for $82 million and recognized a gain on sale of $42 million, which is included in other income (expense), net. 2019 Direct Financing Lease Conversion During the first quarter of 2019, the Company converted a DFL portfolio of 14 senior housing triple-net properties, previously on “Watch List” status, to a RIDEA structure, requiring the Company to recognize net assets equal to the lower of the net assets’ fair value or the carrying value of the net investment in the DFL. As a result, the Company derecognized the $351 million carrying value of the net investment in DFL related to the 14 properties and recognized a combination of net real estate ($331 million) and net intangibles assets ($20 million) for the same aggregate amount, with no gain or loss recognized. As a result of the transaction, the 14 properties were transferred from the senior housing triple-net segment to the SHOP segment during the first quarter of 2019. 2019 Direct Financing Lease Sale During the second quarter of 2019, the Company entered into agreements to sell 13 senior housing facilities under DFLs (the “DFL Sale Portfolio”) for $274 million. Upon entering into the agreements, the Company recognized an allowance for DFL losses and related impairment charge of $10 million (recognized in income (loss) from discontinued operations) to write-down the carrying value of the DFL Sale Portfolio to its fair value. The fair value of the DFL Sale Portfolio was based upon the agreed upon sale price, less estimated costs to sell, which was considered to be a Level 2 measurement within the fair value hierarchy. In conjunction with the entering into agreements to sell the DFL Sale Portfolio, the Company placed the portfolio on nonaccrual status and began recognizing income equal to the amount of cash received. The Company completed the sale of the DFL Sale Portfolio in September 2019. For the DFL Sale Portfolio, during the years ended December 31, 2019 and 2018, income from DFLs was $17 million and $24 million (recognized in income (loss) from discontinued operations), respectively, and cash payments received were $16 million and $20 million, respectively. Direct Financing Lease Receivable Maturities The following table summarizes future minimum lease payments contractually due under DFLs at December 31, 2020 (in thousands):
Year |  | Amount
2021 |  | $ | 8,601 |
2022 |  | 1,203 |
2023 |  | — |
2024 |  | — |
2025 |  | — |
Thereafter |  | — |
Undiscounted minimum lease payments receivable |  | 9,804 |
Less: imputed interest |  | — |
Present value of minimum lease payments receivable |  | $ | 9,804 |
Residual Value Risk Quarterly, the Company reviews the estimated unguaranteed residual value of assets under DFLs to determine if there have been any material changes compared to the prior quarter. As needed, the Company and/or the related tenants will invest necessary funds to maintain the residual value of each asset. Operating Leases Future Minimum Rents The following table summarizes future minimum lease payments to be received, excluding future minimum lease payments from assets classified as discontinued operations, from tenants under non-cancelable operating leases as of December 31, 2020 (in thousands):
Year |  | Amount(1)
2021 |  | $ | 969,519 |
2022 |  | 929,437 |
2023 |  | 869,628 |
2024 |  | 774,641 |
2025 |  | 669,289 |
Thereafter |  | 2,431,032 |
|  | $ | 6,643,546 |
_______________________________________ (1)Excludes future minimum lease payments from assets classified as discontinued operations. Tenant Purchase Options Certain leases, including DFLs, contain purchase options whereby the tenant may elect to acquire the underlying real estate. Annualized base rent from leases subject to purchase options, summarized by the year the purchase options are exercisable, excluding leases related to assets classified as discontinued operations, are as follows (dollars in thousands):
Year |  | Annualized Base Rent(1)(2) |  | Number of Properties
2021 |  | $ | 29,394 |  |  | 12 |
2022 |  | 11,187 |  |  | 3 |
2023 |  | — |  |  | — |
2024 |  | 3,190 |  |  | 1 |
2025 |  | 9,065 |  |  | 13 |
Thereafter |  | 5,815 |  |  | 2 |
|  | $ | 58,651 |  |  | 31 |
_______________________________________ (1)Represents the most recent month’s base rent including additional rent floors and cash income from DFLs annualized for 12 months. Base rent does not include tenant recoveries, additional rents in excess of floors, and non-cash revenue adjustments (i.e., straight-line rents, amortization of market lease intangibles, DFL non-cash interest and deferred revenues). (2)Excludes tenant purchase options related to assets classified as discontinued operations. During the fourth quarter of 2019, one of the Company's tenants exercised its option to acquire from the Company an acute care hospital and adjacent land parcel located in Irvine, California for $226 million. The sale is scheduled to close during the first half of 2021. The annualized base rent associated with the assets covered by this purchase option is included in the table above for 2021. Lease Costs The following tables provide information regarding the Company’s leases to which it is the lessee, such as corporate offices and ground leases, excluding lease costs related to assets classified as discontinued operations (dollars in thousands):
|  | Year Ended December 31,
Lease Expense Information: |  | 2020 |  | 2019 |  | 2018
Total lease expense(1) |  | $ | 13,601 |  |  | $ | 11,852 |  |  | $ | 10,569 |
_______________________________________ (1)Lease expense related to corporate assets is included in general and administrative expenses and lease expense related to ground leases is included within operating expenses in the Company’s consolidated statements of operations.
|  | Year Ended December 31,
Supplemental Cash Flow Information: |  | 2020 |  | 2019 |  | 2018
Cash paid for amounts included in the measurement of lease liability: |  |  |  |  |  |
Operating cash flows for operating leases |  | $ | 9,940 |  |  | $ | 8,158 |  |  | $ | 7,326 |
Right-of-use asset obtained in exchange for new lease liability: |  |  |  |  |  |
Operating leases |  | $ | 32,208 |  |  | $ | 5,733 |  |  | $ | — |
Weighted Average Lease Term and Discount Rate: |  | December 31, 2020 |  | December 31, 2019
Weighted average remaining lease term (years): |  |  |  |
Operating leases |  | 57 |  | 51
Weighted average discount rate: |  |  |  |
Operating leases |  | 4.26 | % |  | 4.36 | %
The following table summarizes future minimum lease payments under non-cancelable ground and other operating leases included in the Company’s lease liability, excluding future minimum lease payments related to assets classified as held for sale or discontinued operations, as of December 31, 2020 (in thousands):
Year |  | Amount(1)
2021 |  | $ | 11,106 |
2022 |  | 11,262 |
2023 |  | 11,445 |
2024 |  | 10,246 |
2025 |  | 8,886 |
Thereafter |  | 469,453 |
Undiscounted minimum lease payments included in the lease liability |  | 522,398 |
Less: imputed interest |  | (342,503) |
Present value of lease liability |  | $ | 179,895 |
_______________________________________ (1)Excludes future minimum lease payments under non-cancelable ground and other operating leases from assets classified as discontinued operations. Depreciation Expense While the Company leases the majority of its property, plant, and equipment to various tenants under operating leases and DFLs, in certain situations, the Company owns and operates certain property, plant, and equipment for general corporate purposes. Corporate assets are recorded within other assets, net within the Company’s consolidated balance sheets and depreciation expense for those assets is recorded in general and administrative expenses in the Company’s consolidated statements of operations. Included within other assets, net as of December 31, 2020 and December 31, 2019 is $6 million and $4 million, respectively, of accumulated depreciation related to corporate assets. Included within general and administrative expenses for the years ended December 31, 2020, 2019, and 2018 is $2 million, $2 million and $4 million, respectively, of depreciation expense related to corporate assets. COVID-19 Rent Deferrals During the second and third quarters of 2020, the Company agreed to defer rent from certain tenants in the medical office segment, with the requirement that all deferred rent be repaid by the end of 2020. Under this program, through December 31, 2020, approximately $6 million of rent was deferred for the medical office segment, substantially all of which had been collected as of December 31, 2020. Additionally, through December 31, 2020, the Company granted approximately $1 million of rent deferrals to certain tenants in the life science segment, all of which had been collected as of December 31, 2020. The rent deferrals granted do not impact the pattern of revenue recognition or amount of revenue recognized (refer to Note 2 for additional information).

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
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

X
- Definition The entire disclosure of lessor's direct financing leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=77888252 + Details
Name: | us-gaap_LessorDirectFinancingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 40 -Subparagraph Note 1 -URI http://asc.fasb.org/extlink&oid=121580752&loc=d3e38371-112697 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 40 -Subparagraph Note 3 -URI http://asc.fasb.org/extlink&oid=121580752&loc=d3e38371-112697 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=77888252 + Details
Name: | us-gaap_OperatingLeasesOfLessorDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration