v3.19.3.a.u2
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2019
Significant Accounting Policies [Line Items]  
Summary of Estimated Useful Life of Asset

Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, which are as follows:

 

Land improvements

 

15 years

Buildings and improvements

 

15 to 39 years

Equipment

 

7 years
Summary of Restricted Cash

Restricted cash consisted of the following:

 

 

 

December 31,

 

(in thousands)

 

2019

 

 

2018

 

Escrow funds and other

 

$

2,311

 

 

$

377

 

Undistributed 1031 proceeds

 

 

5,545

 

 

 

—

 

 

 

$

7,856

 

 

$

377

 
Summary of Rents Received in Advance

Rent received in advance represents tenant payments received prior to the contractual due date, and is included in Accounts payable and other liabilities on the Consolidated Balance Sheets. Rent received in advance is as follows:

 

 

 

December 31,

 

(in thousands)

 

2019

 

 

2018

 

Rents received in advance

 

$

13,368

 

 

$

7,832

 
Summary of Changes in the Allowance for Doubtful Accounts

The following table summarizes the changes in the allowance for doubtful accounts:

 

 

 

For the years ended December 31,

 

(in thousands)

 

2019

 

 

2018

 

 

2017

 

Balance as of January 1

 

$

2,086

 

 

$

742

 

 

$

323

 

Provision for doubtful accounts

 

 

441

 

 

 

1,521

 

 

 

419

 

Write-offs

 

 

(2,527

)

 

 

(177

)

 

 

—

 

Balance as of December 31

 

$

—

 

 

$

2,086

 

 

$

742

 
Summary of Tenant and Capital Reserves

The balances of the tenant and capital reserves are included in Accounts payable and other liabilities on the Consolidated Balance Sheets and are as follows:

 

 

 

December 31,

 

(in thousands)

 

2019

 

 

2018

 

Tenant reserve

 

$

922

 

 

$

774

 

Capital reserve

 

 

872

 

 

 

362

 

 

 

$

1,794

 

 

$

1,136

 
Summary of Debt Issuance Costs on Consolidated Balance Sheets

The following table summarizes debt issuance costs:

 

 

 

December 31,

 

(in thousands)

 

2019

 

 

2018

 

Unsecured revolving credit facility:

 

 

 

 

 

 

 

 

Debt issuance costs

 

$

4,692

 

 

$

3,431

 

Less accumulated amortization

 

 

(2,312

)

 

 

(1,170

)

 

 

$

2,380

 

 

$

2,261

 

Mortgages and notes payable:

 

 

 

 

 

 

 

 

Debt issuance costs

 

$

667

 

 

$

834

 

Less accumulated amortization

 

 

(309

)

 

 

(335

)

 

 

$

358

 

 

$

499

 

Unsecured term notes:

 

 

 

 

 

 

 

 

Debt issuance costs

 

$

9,898

 

 

$

6,997

 

Less accumulated amortization

 

 

(1,979

)

 

 

(2,770

)

 

 

$

7,919

 

 

$

4,227

 
Balances of Financial Instruments Measured at Fair Value on Recurring Basis

The balances of financial instruments measured at fair value on a recurring basis are as follows (see Note 11):

 

 

 

December 31, 2019

 

(in thousands)

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Interest rate swap, assets

 

$

2,911

 

 

$

—

 

 

$

2,911

 

 

$

—

 

Interest rate swap, liabilities

 

 

(24,471

)

 

 

—

 

 

 

(24,471

)

 

 

—

 

 

 

$

(21,560

)

 

$

—

 

 

$

(21,560

)

 

$

—

 

 

 

 

December 31, 2018

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Interest rate swap, assets

 

$

17,633

 

 

$

—

 

 

$

17,633

 

 

$

—

 

Interest rate swap, liabilities

 

 

(1,820

)

 

 

—

 

 

 

(1,820

)

 

 

—

 

 

 

$

15,813

 

 

$

—

 

 

$

15,813

 

 

$

—

 
Summary of Carrying Amount Reported on Consolidated Balance

The following table summarizes the carrying amount reported on the Consolidated Balance Sheets and the Company’s estimate of the fair value of the Mortgages and notes payable, net, Unsecured term notes, net, and Unsecured revolving credit facility:

 

 

 

December 31,

 

(in thousands)

 

2019

 

 

2018

 

Carrying amount

 

$

1,989,451

 

 

$

1,450,551

 

Fair value

 

 

2,047,860

 

 

 

1,439,264

 
Summary of Right-of-Use Assets And Lease Liabilities Associated With Ground Leases Included In Consolidated Balance Sheets

Right-of-use assets and lease liabilities associated with ground leases were included in the accompanying Consolidated Balance Sheets as follows:

 

 

 

 

 

December 31,

 

(in thousands)

 

Financial Statement Presentation

 

2019

 

Right-of-use assets

 

Prepaid expenses and other assets

 

$

1,614

 

Lease liabilities

 

Accounts payable and other liabilities

 

 

1,209

 
ASC 842  
Significant Accounting Policies [Line Items]  
Summary of Reclassifications of Components of Revenue

Certain prior period amounts have been reclassified to conform with the current period’s presentation, including certain items described below which resulted from the adoption of ASC 842.

Components of revenue that were previously reported as Rental income from operating leases, Earned income from direct financing leases, Operating expenses reimbursed from tenants, and Other income from real estate transactions, on the Consolidated Statements of Income and Comprehensive Income, have been combined and reported as Lease revenues on the Consolidated Statements of Income and Comprehensive Income as follows:  

 

As originally reported

 

For the years ended December 31,

 

(in thousands)

 

2018

 

 

2017

 

Revenues

 

 

 

 

 

 

 

 

Rental income from operating leases

 

$

222,208

 

 

$

170,493

 

Earned income from direct financing leases

 

 

3,941

 

 

 

4,141

 

Operating expenses reimbursed from tenants

 

 

11,221

 

 

 

6,721

 

Other income from real estate transactions

 

 

109

 

 

 

208

 

Total revenues

 

$

237,479

 

 

$

181,563

 

 

As revised

 

For the years ended December 31,

 

(in thousands)

 

2018

 

 

2017

 

Revenues

 

 

 

 

 

 

 

 

Lease revenues

 

$

237,479

 

 

$

181,563