Investment in Rental Property and Lease Arrangements (Tables)
|
6 Months Ended |
Jun. 30, 2020 |
|---|
| Leases [Abstract] |
|
| Rental Property Subject to Non-cancelable Operating Leases |
Rental property subject to non-cancelable operating leases with tenants was as follows:
|
(in thousands) |
|
June 30,
2020 |
|
|
December 31,
2019 |
|
|
Land |
|
$ |
545,984 |
|
|
$ |
548,911 |
|
|
Land improvements |
|
|
276,542 |
|
|
|
275,470 |
|
|
Buildings and improvements |
|
|
2,825,327 |
|
|
|
2,850,571 |
|
|
Equipment |
|
|
11,873 |
|
|
|
11,492 |
|
|
|
|
|
3,659,726 |
|
|
|
3,686,444 |
|
|
Less accumulated depreciation |
|
|
(312,934 |
) |
|
|
(271,044 |
) |
|
|
|
$ |
3,346,792 |
|
|
$ |
3,415,400 |
|
Depreciation expense on investment in rental property was as follows:
|
|
|
For the three months ended
June 30, |
|
|
For the six months ended
June 30, |
|
|
(in thousands) |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
Depreciation |
|
$ |
23,560 |
|
|
$ |
19,532 |
|
|
$ |
47,075 |
|
|
$ |
38,285 |
|
|
| 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 June 30, 2020 are as follows:
|
(in thousands) |
|
|
|
|
|
Remainder of 2020 |
|
$ |
142,216 |
|
|
2021 |
|
|
289,046 |
|
|
2022 |
|
|
291,422 |
|
|
2023 |
|
|
294,357 |
|
|
2024 |
|
|
290,202 |
|
|
Thereafter |
|
|
2,229,760 |
|
|
|
|
$ |
3,537,003 |
|
|
| Net Investment in Direct Financing Leases |
The Company’s net investment in direct financing leases was comprised of the following:
|
(in thousands) |
|
June 30,
2020 |
|
|
December 31,
2019 |
|
|
Undiscounted estimated lease payments to be received |
|
$ |
49,524 |
|
|
$ |
72,753 |
|
|
Estimated unguaranteed residual values |
|
|
16,049 |
|
|
|
20,358 |
|
|
Unearned income |
|
|
(34,424 |
) |
|
|
(51,221 |
) |
|
Reserve for credit losses |
|
|
(196 |
) |
|
|
— |
|
|
Net investment in direct financing leases |
|
$ |
30,953 |
|
|
$ |
41,890 |
|
|
| Direct Financing Leases, Lease Receivable Maturity |
Undiscounted estimated lease payments to be received under non-cancelable direct financing leases with tenants at June 30, 2020 are as follows:
|
(in thousands) |
|
|
|
|
|
Remainder of 2020 |
|
$ |
1,622 |
|
|
2021 |
|
|
3,304 |
|
|
2022 |
|
|
3,368 |
|
|
2023 |
|
|
3,433 |
|
|
2024 |
|
|
3,493 |
|
|
Thereafter |
|
|
34,304 |
|
|
|
|
$ |
49,524 |
|
|
| Summary of Amounts Reported as Lease Revenues Net on the Condensed Consolidated Statements of Income and Comprehensive Income (Loss) |
The following table summarizes amounts reported as Lease revenues, net on the Condensed Consolidated Statements of Income and Comprehensive Income (Loss):
|
|
|
For the three months ended
June 30, |
|
|
For the six months ended
June 30, |
|
|
(in thousands) |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
Contractual rental amounts billed for operating leases |
|
$ |
67,342 |
|
|
$ |
60,294 |
|
|
$ |
140,170 |
|
|
$ |
118,713 |
|
|
Adjustment to recognize contractual operating lease billings on a
straight-line basis |
|
|
8,276 |
|
|
|
5,269 |
|
|
|
9,941 |
|
|
|
10,440 |
|
|
Variable rental amounts earned |
|
|
51 |
|
|
|
— |
|
|
|
74 |
|
|
|
— |
|
|
Adjustment to revenue recognized for uncollectible rental amounts
billed |
|
|
(1,190 |
) |
|
|
— |
|
|
|
(2,223 |
) |
|
|
(440 |
) |
|
Total operating lease rental revenues |
|
|
74,479 |
|
|
|
65,563 |
|
|
|
147,962 |
|
|
|
128,713 |
|
|
Earned income from direct financing leases |
|
|
855 |
|
|
|
1,004 |
|
|
|
1,842 |
|
|
|
2,009 |
|
|
Operating expenses billed to tenants |
|
|
4,335 |
|
|
|
2,486 |
|
|
|
8,067 |
|
|
|
6,761 |
|
|
Other income from real estate transactions |
|
|
702 |
|
|
|
— |
|
|
|
731 |
|
|
|
— |
|
|
Total Lease revenues, net |
|
$ |
80,371 |
|
|
$ |
69,053 |
|
|
$ |
158,602 |
|
|
$ |
137,483 |
|
|