Investment in Rental Property and Lease Arrangements (Tables)
|
9 Months Ended |
Sep. 30, 2022 |
|---|
| Leases [Abstract] |
|
| Rental Property Subject to Non-cancelable Operating Leases |
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) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Depreciation |
|
$ |
29,142 |
|
|
$ |
25,232 |
|
|
$ |
83,530 |
|
|
$ |
73,119 |
|
|
| 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, 2022 are as follows:
|
|
|
|
|
(in thousands) |
|
|
|
Remainder of 2022 |
|
$ |
91,352 |
|
2023 |
|
|
369,961 |
|
2024 |
|
|
369,585 |
|
2025 |
|
|
363,947 |
|
2026 |
|
|
354,818 |
|
Thereafter |
|
|
2,941,041 |
|
|
|
$ |
4,490,704 |
|
|
| Net Investment in Direct Financing Leases |
The Company's net investment in direct financing leases was comprised of the following:
|
|
|
|
|
|
|
|
|
(in thousands) |
|
September 30,
2022 |
|
|
December 31,
2021 |
|
Undiscounted estimated lease payments to be received |
|
$ |
39,032 |
|
|
$ |
42,602 |
|
Estimated unguaranteed residual values |
|
|
14,547 |
|
|
|
15,203 |
|
Unearned revenue |
|
|
(26,326 |
) |
|
|
(28,893 |
) |
Reserve for credit losses |
|
|
(125 |
) |
|
|
(130 |
) |
Net investment in direct financing leases |
|
$ |
27,128 |
|
|
$ |
28,782 |
|
|
| Direct Financing Leases, Lease Receivable Maturity |
Undiscounted estimated lease payments to be received under non-cancelable direct financing leases with tenants at September 30, 2022 are as follows:
|
|
|
|
|
(in thousands) |
|
|
|
Remainder of 2022 |
|
$ |
763 |
|
2023 |
|
|
3,114 |
|
2024 |
|
|
3,171 |
|
2025 |
|
|
3,285 |
|
2026 |
|
|
3,357 |
|
Thereafter |
|
|
25,342 |
|
|
|
$ |
39,032 |
|
|
| Summary of Amounts Reported as Lease Revenues, Net on the Consolidated Statements of Income and Comprehensive Income |
The following table summarizes amounts reported as Lease revenues, net on the Condensed Consolidated Statements of Income and Comprehensive Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
September 30, |
|
|
For the Nine Months Ended
September 30, |
|
(in thousands) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Contractual rental amounts billed for operating leases |
|
$ |
91,208 |
|
|
$ |
78,886 |
|
|
$ |
263,109 |
|
|
$ |
227,142 |
|
Adjustment to recognize contractual operating lease billings on a
straight-line basis |
|
|
5,344 |
|
|
|
4,942 |
|
|
|
15,455 |
|
|
|
14,475 |
|
Net write-offs of accrued rental income |
|
|
— |
|
|
|
— |
|
|
|
(1,326 |
) |
|
|
(442 |
) |
Variable rental amounts earned |
|
|
309 |
|
|
|
130 |
|
|
|
786 |
|
|
|
335 |
|
Earned income from direct financing leases |
|
|
719 |
|
|
|
726 |
|
|
|
2,163 |
|
|
|
2,184 |
|
Interest income from sales-type leases |
|
|
14 |
|
|
|
14 |
|
|
|
43 |
|
|
|
43 |
|
Operating expenses billed to tenants |
|
|
5,061 |
|
|
|
4,414 |
|
|
|
14,059 |
|
|
|
12,998 |
|
Other income from real estate transactions (a) |
|
|
874 |
|
|
|
33,515 |
|
|
|
1,050 |
|
|
|
33,548 |
|
Adjustment to revenue recognized for uncollectible rental
amounts billed, net |
|
|
(5 |
) |
|
|
150 |
|
|
|
39 |
|
|
|
(49 |
) |
Total lease revenues, net |
|
$ |
103,524 |
|
|
$ |
122,777 |
|
|
$ |
295,378 |
|
|
$ |
290,234 |
|
|