Investment in Rental Property and Lease Arrangements (Tables)
|
9 Months Ended |
Sep. 30, 2021 |
|---|
| Leases [Abstract] |
|
| Rental Property Subject to Non-cancelable Operating Leases |
Investment in Rental Property – Accounted for Using the Operating Method Rental property subject to non-cancelable operating leases with tenants was as follows:
|
|
|
|
|
|
|
|
|
(in thousands) |
|
September 30,
2021 |
|
|
December 31,
2020 |
|
Land |
|
$ |
616,917 |
|
|
$ |
555,748 |
|
Land improvements |
|
|
291,045 |
|
|
|
279,360 |
|
Buildings and improvements |
|
|
3,161,728 |
|
|
|
2,857,510 |
|
Equipment |
|
|
11,870 |
|
|
|
11,870 |
|
|
|
|
4,081,560 |
|
|
|
3,704,488 |
|
Less accumulated depreciation |
|
|
(407,354 |
) |
|
|
(349,977 |
) |
|
|
$ |
3,674,206 |
|
|
$ |
3,354,511 |
|
Depreciation expense on investment in rental property was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
September 30, |
|
|
For the Nine Months Ended
September 30, |
|
(in thousands) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Depreciation |
|
$ |
25,232 |
|
|
$ |
23,317 |
|
|
$ |
73,119 |
|
|
$ |
70,392 |
|
|
| 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 September 30, 2021 are as follows:
|
|
|
|
|
(in thousands) |
|
|
|
Remainder of 2021 |
|
$ |
80,375 |
|
2022 |
|
|
323,733 |
|
2023 |
|
|
327,663 |
|
2024 |
|
|
324,289 |
|
2025 |
|
|
317,470 |
|
Thereafter |
|
|
2,467,607 |
|
|
|
$ |
3,841,137 |
|
|
| Net Investment in Direct Financing Leases |
The Company’s net investment in direct financing leases was comprised of the following:
|
|
|
|
|
|
|
|
|
(in thousands) |
|
September 30,
2021 |
|
|
December 31,
2020 |
|
Undiscounted estimated lease payments to be received |
|
$ |
43,397 |
|
|
$ |
45,782 |
|
Estimated unguaranteed residual values |
|
|
15,203 |
|
|
|
15,203 |
|
Unearned revenue |
|
|
(29,605 |
) |
|
|
(31,753 |
) |
Reserve for credit losses |
|
|
(165 |
) |
|
|
(166 |
) |
Net investment in direct financing leases |
|
$ |
28,830 |
|
|
$ |
29,066 |
|
|
| Direct Financing Leases, Lease Receivable Maturity |
Undiscounted estimated lease payments to be received under non-cancelable direct financing leases with tenants at September 30, 2021 are as follows:
|
|
|
|
|
(in thousands) |
|
|
|
Remainder of 2021 |
|
$ |
795 |
|
2022 |
|
|
3,241 |
|
2023 |
|
|
3,304 |
|
2024 |
|
|
3,361 |
|
2025 |
|
|
3,475 |
|
Thereafter |
|
|
29,221 |
|
|
|
$ |
43,397 |
|
|
| 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
September 30, |
|
|
For the Nine Months Ended
September 30, |
|
(in thousands) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Contractual rental amounts billed for operating leases |
|
$ |
78,886 |
|
|
$ |
69,270 |
|
|
$ |
227,142 |
|
|
$ |
209,440 |
|
Adjustment to recognize contractual operating lease billings on a
straight-line basis |
|
|
4,942 |
|
|
|
6,768 |
|
|
|
14,033 |
|
|
|
16,709 |
|
Variable rental amounts earned |
|
|
130 |
|
|
|
234 |
|
|
|
335 |
|
|
|
308 |
|
Earned income from direct financing leases |
|
|
726 |
|
|
|
757 |
|
|
|
2,184 |
|
|
|
2,599 |
|
Interest income from sales-type leases |
|
|
14 |
|
|
|
— |
|
|
|
43 |
|
|
|
— |
|
Operating expenses billed to tenants |
|
|
4,414 |
|
|
|
3,389 |
|
|
|
12,998 |
|
|
|
11,456 |
|
Other income from real estate transactions (a) |
|
|
33,515 |
|
|
|
64 |
|
|
|
33,548 |
|
|
|
795 |
|
Adjustment to revenue recognized for uncollectible rental
amounts billed, net |
|
|
150 |
|
|
|
262 |
|
|
|
(49 |
) |
|
|
(1,961 |
) |
Total Lease revenues, net |
|
$ |
122,777 |
|
|
$ |
80,744 |
|
|
$ |
290,234 |
|
|
$ |
239,346 |
|
(a)Refer to the Company's policy footnote on Long-lived Asset Impairment in Note 2 for further discussion of lease termination income recognized through Other income from real estate transactions during the three and nine months ended September 30, 2021.
|