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Leases
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases Leases
Lessor Accounting Under ASC 842
The Company’s properties generally are leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2052. Some leases provide for fixed rent renewal terms in addition to market rent renewal terms. Some leases provide the lessee, during the term of the lease, with an option or right of first refusal to purchase the leased property. The Company’s portfolio of single-tenant leases generally requires the lessee to pay minimum rent and all taxes (including property tax), insurance, maintenance and other operating costs associated with the leased property. The Company records these expenses on a net basis, with the exception of property taxes. Property taxes are recorded on a gross basis as a lessor cost in which the tenant reimburses the Company. The Company generally expects that collectability is probable at lease commencement. If the assessment of collectability changes after the lease commencement date and Rental income is not considered probable, Rental income is recognized on a
cash basis and all previously recognized uncollectible Rental income is reversed in the period in which it is determined not to be probable of collection. In addition to the lease-specific collectability assessment performed under Topic 842, the Company may also apply a general reserve ("provision for bad debt"), as a reduction to Rental income, for its portfolio of operating lease receivables.
The Company's leases typically have escalators that are either based on a stated percentage or an index such as CPI (consumer price index). In addition, most of the Company's leases include nonlease components such as reimbursement of operating expenses as additional rent or include the reimbursement of expected operating expenses as part of the lease payment. The Company adopted an accounting policy to combine lease and nonlease components. Rent escalators based on indices and reimbursements of operating expenses that are not included in the lease rate are considered variable lease payments. Variable payments are recognized in the period earned. Lease income for the Company's operating leases recognized for the year ended December 31, 2022 was $907.5 million.
Future minimum lease payments under the non-cancelable operating leases, excluding any reimbursements, as of December 31, 2022 are as follows:
In thousands
2023$928,516 
2024814,132 
2025701,659 
2026603,051 
2027500,645 
2028 and thereafter1,633,847 
$5,181,850 

Revenue Concentrations
The Company’s real estate portfolio is leased to a diverse tenant base. The Company did not have any customers that account for 10% or more of the Company's revenues for the years ended December 31, 2022, 2021 and 2020.

Purchase Option Provisions
Certain of the Company’s leases include purchase option provisions. The provisions vary by agreement but generally allow the lessee to purchase the property covered by the agreement at fair market value or an amount equal to the Company’s gross investment. The Company expects that the purchase price from its purchase options will be greater than its net investment in the properties at the time of potential exercise by the lessee. The Company had investments of approximately $100.4 million in five real estate properties as of December 31, 2022 that were subject to purchase options that were exercisable.

Lessee Accounting Under ASC 842
As of December 31, 2022, the Company was obligated, as the lessee, under operating and finance lease agreements consisting primarily of the Company’s ground leases. Contracts evaluated and treated as leases are those that convey the right to control the use of identified assets for a period of time in exchange for consideration. ASC 842 requires the recording of these leases based on the aggregate future cash flows, discounted utilizing the implicit rate in the lease, or, if not readily determinable, based upon the lessee's incremental borrowing rate, to which the Company utilizes market inputs that are both similar to the Company's credit profile and corresponding term of the leases. As of December 31, 2022, the Company had 242 properties totaling 17.8 million square feet that were held under ground leases. Some of the ground leases renewal terms are based on fixed rent renewal terms and others have market rent renewal terms. These ground leases typically have initial terms of 40 to 99 years with expiration dates through 2119. Any rental increases related to the Company’s ground leases are generally either stated or based on the Consumer Price Index. The Company had 75 prepaid ground leases as of December 31, 2022. The amortization of the prepaid rent, included in the operating lease right-of-use asset, represented approximately $1.1 million for the year ended December 31, 2022 and $0.6 million for the years ended December 31, 2021 and 2020.
The Company’s future lease payments (primarily for its 167 non-prepaid ground leases) as of December 31, 2022 were as follows:
In thousandsOPERATINGFINANCING
2023$15,641 $2,140 
2024$15,227 $2,182 
2025$14,814 $2,218 
2026$14,852 $2,255 
2027$14,921 $2,294 
2028 and thereafter$939,165 $396,398 
Total undiscounted lease payments$1,014,620 $407,487 
Discount$(734,725)$(334,548)
Lease liabilities$279,895 $72,939 

The following table provides details of the Company's total lease expense for the year ended December 31, 2022:
In thousandsYEAR ENDED
Dec. 31, 2022		YEAR ENDED
Dec. 31, 2021
Operating lease cost
Operating lease expense$12,699 $4,765 
Variable lease expense4,529 3,929 
Finance lease cost
Amortization of right-of-use assets1,288 388 
Interest on lease liabilities2,876 1,032 
Total lease expense$21,392 $10,114 
Other information
Operating cash flows outflows related to operating leases$12,816$7,706
Operating cash flows outflows related to financing leases$1,838$809
Financing cash flows outflows related to financing leases$—$9,182
Right-of-use assets obtained in exchange for new finance lease liabilities$53,765$3,827
Right-of-use assets obtained in exchange for new operating lease liabilities$216,047$8,298
Weighted-average remaining lease term (excluding renewal options) - operating leases47.547.6
Weighted-average remaining lease term (excluding renewal options) -finance leases58.962.1
Weighted-average discount rate - operating leases5.8 %5.6 %
Weighted-average discount rate - finance leases5.0 %5.3 %
Leases Leases
Lessor Accounting Under ASC 842
The Company’s properties generally are leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2052. Some leases provide for fixed rent renewal terms in addition to market rent renewal terms. Some leases provide the lessee, during the term of the lease, with an option or right of first refusal to purchase the leased property. The Company’s portfolio of single-tenant leases generally requires the lessee to pay minimum rent and all taxes (including property tax), insurance, maintenance and other operating costs associated with the leased property. The Company records these expenses on a net basis, with the exception of property taxes. Property taxes are recorded on a gross basis as a lessor cost in which the tenant reimburses the Company. The Company generally expects that collectability is probable at lease commencement. If the assessment of collectability changes after the lease commencement date and Rental income is not considered probable, Rental income is recognized on a
cash basis and all previously recognized uncollectible Rental income is reversed in the period in which it is determined not to be probable of collection. In addition to the lease-specific collectability assessment performed under Topic 842, the Company may also apply a general reserve ("provision for bad debt"), as a reduction to Rental income, for its portfolio of operating lease receivables.
The Company's leases typically have escalators that are either based on a stated percentage or an index such as CPI (consumer price index). In addition, most of the Company's leases include nonlease components such as reimbursement of operating expenses as additional rent or include the reimbursement of expected operating expenses as part of the lease payment. The Company adopted an accounting policy to combine lease and nonlease components. Rent escalators based on indices and reimbursements of operating expenses that are not included in the lease rate are considered variable lease payments. Variable payments are recognized in the period earned. Lease income for the Company's operating leases recognized for the year ended December 31, 2022 was $907.5 million.
Future minimum lease payments under the non-cancelable operating leases, excluding any reimbursements, as of December 31, 2022 are as follows:
In thousands
2023$928,516 
2024814,132 
2025701,659 
2026603,051 
2027500,645 
2028 and thereafter1,633,847 
$5,181,850 

Revenue Concentrations
The Company’s real estate portfolio is leased to a diverse tenant base. The Company did not have any customers that account for 10% or more of the Company's revenues for the years ended December 31, 2022, 2021 and 2020.

Purchase Option Provisions
Certain of the Company’s leases include purchase option provisions. The provisions vary by agreement but generally allow the lessee to purchase the property covered by the agreement at fair market value or an amount equal to the Company’s gross investment. The Company expects that the purchase price from its purchase options will be greater than its net investment in the properties at the time of potential exercise by the lessee. The Company had investments of approximately $100.4 million in five real estate properties as of December 31, 2022 that were subject to purchase options that were exercisable.

Lessee Accounting Under ASC 842
As of December 31, 2022, the Company was obligated, as the lessee, under operating and finance lease agreements consisting primarily of the Company’s ground leases. Contracts evaluated and treated as leases are those that convey the right to control the use of identified assets for a period of time in exchange for consideration. ASC 842 requires the recording of these leases based on the aggregate future cash flows, discounted utilizing the implicit rate in the lease, or, if not readily determinable, based upon the lessee's incremental borrowing rate, to which the Company utilizes market inputs that are both similar to the Company's credit profile and corresponding term of the leases. As of December 31, 2022, the Company had 242 properties totaling 17.8 million square feet that were held under ground leases. Some of the ground leases renewal terms are based on fixed rent renewal terms and others have market rent renewal terms. These ground leases typically have initial terms of 40 to 99 years with expiration dates through 2119. Any rental increases related to the Company’s ground leases are generally either stated or based on the Consumer Price Index. The Company had 75 prepaid ground leases as of December 31, 2022. The amortization of the prepaid rent, included in the operating lease right-of-use asset, represented approximately $1.1 million for the year ended December 31, 2022 and $0.6 million for the years ended December 31, 2021 and 2020.
The Company’s future lease payments (primarily for its 167 non-prepaid ground leases) as of December 31, 2022 were as follows:
In thousandsOPERATINGFINANCING
2023$15,641 $2,140 
2024$15,227 $2,182 
2025$14,814 $2,218 
2026$14,852 $2,255 
2027$14,921 $2,294 
2028 and thereafter$939,165 $396,398 
Total undiscounted lease payments$1,014,620 $407,487 
Discount$(734,725)$(334,548)
Lease liabilities$279,895 $72,939 

The following table provides details of the Company's total lease expense for the year ended December 31, 2022:
In thousandsYEAR ENDED
Dec. 31, 2022		YEAR ENDED
Dec. 31, 2021
Operating lease cost
Operating lease expense$12,699 $4,765 
Variable lease expense4,529 3,929 
Finance lease cost
Amortization of right-of-use assets1,288 388 
Interest on lease liabilities2,876 1,032 
Total lease expense$21,392 $10,114 
Other information
Operating cash flows outflows related to operating leases$12,816$7,706
Operating cash flows outflows related to financing leases$1,838$809
Financing cash flows outflows related to financing leases$—$9,182
Right-of-use assets obtained in exchange for new finance lease liabilities$53,765$3,827
Right-of-use assets obtained in exchange for new operating lease liabilities$216,047$8,298
Weighted-average remaining lease term (excluding renewal options) - operating leases47.547.6
Weighted-average remaining lease term (excluding renewal options) -finance leases58.962.1
Weighted-average discount rate - operating leases5.8 %5.6 %
Weighted-average discount rate - finance leases5.0 %5.3 %