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Investment in Rental Property and Lease Arrangements | 12 Months Ended
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Dec. 31, 2017
Leases [Abstract] |
Investment in Rental Property and Lease Arrangements | 6. Investment in Rental Property and Lease Arrangements The Company generally leases its investment rental property to established tenants. At December 31, 2017, the Company had 513 real estate properties which were leased under leases that have been classified as operating leases and 15 that have been classified as direct financing leases. Of the 15 leases classified as direct financing leases, four include land portions which are accounted for as operating leases (see Revenue Recognition within Note 2). Substantially all leases have initial terms of 10 to 20 years and provide for minimum rentals as defined in ASC 840, Leases. In addition, the leases generally provide for limited increases in rent as a result of fixed increases, increases in the Consumer Price Index, or increases in the tenant’s sales volume. Generally, the tenant is also required to pay all property taxes and assessments, substantially maintain the interior and exterior of the building, and maintain property and liability insurance coverage. The leases also typically provide one or more multiple year renewal options subject to generally the same terms and conditions as the initial lease. Investment in Rental Property – Accounted for Using the Operating Method Rental property subject to non-cancelable operating leases with tenants are as follows at December 31, 2017 and 2016:
|  | December 31, |
(in thousands) |  | 2017 |  |  | 2016 |
Land |  | $ | 348,940 |  |  | $ | 288,276 |
Land improvements |  |  | 211,674 |  |  |  | 162,341 |
Buildings |  |  | 1,754,796 |  |  |  | 1,283,322 |
Tenant improvements |  |  | 11,425 |  |  |  | 8,665 |
Equipment |  |  | 7,689 |  |  |  | 799 |
|  |  | 2,334,524 |  |  |  | 1,743,403 |
Less accumulated depreciation |  |  | (148,383 | ) |  |  | (105,703 | )
|  | $ | 2,186,141 |  |  | $ | 1,637,700 |
Depreciation expense on investment in rental property was $50,360, $37,976 and $25,038 for the years ended December 31, 2017, 2016, and 2015, respectively. Estimated minimum future rental receipts required under non-cancelable operating leases with tenants at December 31, 2017 are as follows:
(in thousands) |  |  |  |
2018 |  | $ | 188,519 |
2019 |  |  | 192,387 |
2020 |  |  | 195,455 |
2021 |  |  | 198,379 |
2022 |  |  | 200,765 |
Thereafter |  |  | 1,848,237 |
|  | $ | 2,823,742 |
Since lease renewal periods are exercisable at the option of the tenant, the above amounts only include future minimum lease payments due during the initial lease terms. In addition, such amounts exclude any potential variable rent increases that are based on the Consumer Price Index or future contingent rents which may be received under the leases based on a percentage of the tenant’s gross sales. Investment in Rental Property – Accounted for Using the Direct Financing Method The Company’s net investment in direct financing leases is as follows as of December 31:
|  | December 31, |
(in thousands) |  | 2017 |  |  | 2016 |
Minimum lease payments to be received |  | $ | 77,889 |  |  | $ | 90,447 |
Estimated unguaranteed residual values |  |  | 19,758 |  |  |  | 22,335 |
Less unearned revenue |  |  | (56,030 | ) |  |  | (65,511 | )
Net investment in direct financing leases |  | $ | 41,617 |  |  | $ | 47,271 |
Minimum future rental receipts required under non-cancelable direct financing leases with tenants at December 31, 2017 are as follows:
(in thousands) |  |  |  |
2018 |  | $ | 3,857 |
2019 |  |  | 3,931 |
2020 |  |  | 4,037 |
2021 |  |  | 4,126 |
2022 |  |  | 4,211 |
Thereafter |  |  | 57,727 |
|  | $ | 77,889 |
The above rental receipts do not include future minimum lease payments for renewal periods, potential variable Consumer Price Index rent increases or contingent rental payments that may become due in future periods.

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- Definition The entire disclosure for lessor entity's leasing arrangements for operating, capital and leveraged leases. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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