Annual report pursuant to Section 13 and 15(d)

LEASES

v3.20.4
LEASES
12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
LEASES LEASES
The Company determines if a contractual arrangement is a lease at inception. As a lessee, the Company has non-cancelable lease agreements for real estate and its corporate office space that are classified as operating leases. The Company's operating leases are included in operating lease right-of-use ("ROU") assets and operating lease liabilities in its consolidated balance sheets. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company's operating leases do not provide an implicit rate, the Company used its incremental borrowing rate based on the information available at commencement date in determining the discount rate for the present value of the lease payments. To the extent that the lease agreements provide for fixed increases throughout the term of the lease, the Company recognizes lease expense on a straight-line basis over the expected lease terms.
Real Estate Leasehold Interests
The Company has eight properties that are subject to non-cancelable leasehold interest agreements with remaining lease terms ranging from 14 to 72 years, inclusive of extension options that the Company anticipates exercising. Rent expense under these leasehold interest agreements is included in property operating expenses in the accompanying consolidated statements of operations and amounted to $1.8 million, $1.6 million and $1.6 million for the years ended December 31, 2020, 2019 and 2018, respectively.
Office Leases
The Company has entered into non-cancelable lease agreements for its corporate office space with remaining lease terms ranging from two to eight years. Rent expense related to these office leases is included in general and administrative expenses in the accompanying consolidated statements of operations and amounted to $0.4 million, $0.3 million and $0.2 million for the years ended December 31, 2020, 2019 and 2018, respectively.
The weighted-average remaining lease term and the weighted-average discount rate for the Company's operating leases as of December 31, 2020 are as follows:
December 31, 2020
Weighted-average remaining lease term
Real estate leasehold interests 28 years
Office leases 6 years
Weighted-average remaining discount rate
Real estate leasehold interests 4.9  %
Office leases 3.8  %
As of December 31, 2020, the future minimum lease payments under the Company's operating leases, for which the Company is a lessee, are as follows (in thousands):
Year Ending December 31, Real Estate Leasehold Interests Office Leases Total
2021 $ 1,444  $ 471  $ 1,915 
2022 1,459  465  1,924 
2023 1,464  430  1,894 
2024 1,470  450  1,920 
2025 1,521  456  1,977 
2026 through 2092 35,206  624  35,830 
Total lease payments $ 42,564  $ 2,896  $ 45,460 
Less imputed interest (20,374) (330) (20,704)
Total $ 22,190  $ 2,566  $ 24,756 

As of December 31, 2019, the future minimum lease payments under the Company's operating leases, for which the Company is a lessee, are as follows (in thousands):
Year Ending December 31, Real Estate Leasehold Interests Office Leases Total
2020 $ 1,419  $ 286  $ 1,705 
2021 1,444  387  1,831 
2022 1,459  381  1,840 
2023 1,464  346  1,810 
2024 1,470  353  1,823 
2025 through 2092 36,728  691  37,419 
Total lease payments $ 43,984  $ 2,444  $ 46,428 
Less imputed interest (21,440) (323) (21,763)
Total $ 22,544  $ 2,121  $ 24,665