Investment in Rental Property and Lease Arrangements (Tables)
|
12 Months Ended |
Dec. 31, 2019 |
|---|
| Leases [Abstract] |
|
| Rental Property Subject to Non-cancelable Operating Leases |
Rental property subject to non-cancelable operating leases with tenants are as follows:
|
|
|
December 31, |
|
|
(in thousands) |
|
2019 |
|
|
2018 |
|
|
Land |
|
$ |
548,911 |
|
|
$ |
411,043 |
|
|
Land improvements |
|
|
275,470 |
|
|
|
239,701 |
|
|
Buildings and improvements |
|
|
2,850,571 |
|
|
|
2,186,499 |
|
|
Equipment |
|
|
11,492 |
|
|
|
11,492 |
|
|
|
|
|
3,686,444 |
|
|
|
2,848,735 |
|
|
Less accumulated depreciation |
|
|
(271,044 |
) |
|
|
(206,989 |
) |
|
|
|
$ |
3,415,400 |
|
|
$ |
2,641,746 |
|
Depreciation expense on investment in rental property was as follows:
|
|
|
For the years ended December 31, |
|
|
(in thousands) |
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
Depreciation |
|
$ |
83,797 |
|
|
$ |
66,055 |
|
|
$ |
50,360 |
|
|
| Estimated Lease Payments to be Received under Non-cancelable Operating Leases |
Estimated lease payments to be received under non-cancelable operating leases with tenants at December 31, 2019 are as follows:
|
(in thousands) |
|
|
|
|
|
2020 |
|
$ |
290,974 |
|
|
2021 |
|
|
295,713 |
|
|
2022 |
|
|
298,938 |
|
|
2023 |
|
|
302,017 |
|
|
2024 |
|
|
297,121 |
|
|
Thereafter |
|
|
2,280,973 |
|
|
|
|
$ |
3,765,736 |
|
Estimated minimum future rental receipts required under non-cancelable operating leases with tenants at December 31, 2018 are as follows:
|
(in thousands) |
|
|
|
|
|
2019 |
|
$ |
231,725 |
|
|
2020 |
|
|
235,426 |
|
|
2021 |
|
|
238,223 |
|
|
2022 |
|
|
240,083 |
|
|
2023 |
|
|
241,498 |
|
|
Thereafter |
|
|
2,007,118 |
|
|
|
|
$ |
3,194,073 |
|
|
| Net Investment in Direct Financing Leases |
The Company’s net investment in direct financing leases is comprised of the following:
|
|
|
December 31, |
|
|
(in thousands) |
|
2019 |
|
|
2018 |
|
|
Undiscounted estimated lease payments to be received |
|
$ |
72,753 |
|
|
$ |
76,829 |
|
|
Estimated unguaranteed residual values |
|
|
20,358 |
|
|
|
20,358 |
|
|
Unearned revenue |
|
|
(51,221 |
) |
|
|
(55,187 |
) |
|
Net investment in direct financing leases |
|
$ |
41,890 |
|
|
$ |
42,000 |
|
|
| Direct Financing Leases, Lease Receivable Maturity |
Undiscounted estimated lease payments to be received under non-cancelable direct financing leases with tenants at December 31, 2019 are as follows:
|
(in thousands) |
|
|
|
|
|
2020 |
|
$ |
4,194 |
|
|
2021 |
|
|
4,283 |
|
|
2022 |
|
|
4,369 |
|
|
2023 |
|
|
4,456 |
|
|
2024 |
|
|
4,539 |
|
|
Thereafter |
|
|
50,912 |
|
|
|
|
$ |
72,753 |
|
Minimum future rental receipts required under non-cancelable direct financing leases with tenants at December 31, 2018 are as follows:
|
(in thousands) |
|
|
|
|
|
2019 |
|
$ |
4,076 |
|
|
2020 |
|
|
4,194 |
|
|
2021 |
|
|
4,283 |
|
|
2022 |
|
|
4,369 |
|
|
2023 |
|
|
4,456 |
|
|
Thereafter |
|
|
55,451 |
|
|
|
|
$ |
76,829 |
|
|
| Summary of Amounts Reported as Lease Revenues on the Condensed Consolidated Statements of Income and Comprehensive Income |
The following table summarizes amounts reported as Lease revenues on the Consolidated Statements of Income and Comprehensive Income:
|
|
|
For the year ended |
|
|
(in thousands) |
|
December 31, 2019 |
|
|
Contractual rental amounts billed for operating leases |
|
$ |
257,695 |
|
|
Adjustment to recognize contractual operating lease billings on a straight-line basis |
|
|
22,109 |
|
|
Percentage rent income |
|
|
152 |
|
|
Adjustment to revenue recognized for uncollectible rental amounts billed |
|
|
(441 |
) |
|
Total operating lease rental revenues |
|
|
279,515 |
|
|
Earned income from direct financing leases |
|
|
4,018 |
|
|
Operating expenses billed to tenants |
|
|
14,614 |
|
|
Other income from real estate transactions |
|
|
668 |
|
|
Total lease revenues |
|
$ |
298,815 |
|
|