Quarterly report pursuant to Section 13 or 15(d)

Lease Accounting

v3.20.2
Lease Accounting
6 Months Ended
Jun. 30, 2020
Leases [Abstract]  
Lease Accounting LEASE ACCOUNTING
Leasing as a Lessor

        Future Minimum Rental Income

As of June 30, 2020, non-cancelable commercial operating leases provide for future minimum rental income from continuing operations as follows (in thousands). Apartment leases are not included as the terms are generally for one year or less.
2020 $ 73,934   
2021 132,724   
2022 119,905   
2023 102,671   
2024 89,518   
Thereafter 313,669   
$ 832,421   

Leasing as a Lessee

2000 M Street, an office property in Washington, DC, is subject to an operating ground lease with a remaining term of 51 years. Rental payments under this lease are subject to percentage rent variable payments, which are not included as part of our measurement of straight-line rental expense. We recognized straight-line rental expense of $0.1 million during each of the 2020 Quarter and 2019 Quarter and $0.1 million for each of the 2020 Period and 2019 Period, respectively. We recognized variable rental payments of $0.2 million during each of the 2020 Quarter and 2019 Quarter and $0.4 million and $0.5 million during each of the 2020 Period and 2019 Period, respectively.

We recognized a right of use asset (included in Income producing property) and lease liability (included in Accounts payable and other liabilities) of $4.2 million. We used a discount rate of approximately 5.9%, which was derived from our assessment of securitized rates for similar assets and credit quality. We recognized $0.1 million of right-of-use and lease liability amortization during each of the 2020 Quarter and 2019 Quarter and $0.1 million for each of the 2020 Period and 2019 Period, respectively.
The following table sets forth the undiscounted cash flows of our scheduled obligations for future minimum payments on our operating ground lease as of June 30, 2020 and a reconciliation of those cash flows to the operating lease liability as of June 30, 2020 (in thousands):
2020 $ 130   
2021 260   
2022 260   
2023 260   
2024 260   
Thereafter 11,895   
13,065   
Imputed interest (9,216)  
Lease liability $ 3,849   
Lease Accounting LEASE ACCOUNTING
Leasing as a Lessor

        Future Minimum Rental Income

As of June 30, 2020, non-cancelable commercial operating leases provide for future minimum rental income from continuing operations as follows (in thousands). Apartment leases are not included as the terms are generally for one year or less.
2020 $ 73,934   
2021 132,724   
2022 119,905   
2023 102,671   
2024 89,518   
Thereafter 313,669   
$ 832,421   

Leasing as a Lessee

2000 M Street, an office property in Washington, DC, is subject to an operating ground lease with a remaining term of 51 years. Rental payments under this lease are subject to percentage rent variable payments, which are not included as part of our measurement of straight-line rental expense. We recognized straight-line rental expense of $0.1 million during each of the 2020 Quarter and 2019 Quarter and $0.1 million for each of the 2020 Period and 2019 Period, respectively. We recognized variable rental payments of $0.2 million during each of the 2020 Quarter and 2019 Quarter and $0.4 million and $0.5 million during each of the 2020 Period and 2019 Period, respectively.

We recognized a right of use asset (included in Income producing property) and lease liability (included in Accounts payable and other liabilities) of $4.2 million. We used a discount rate of approximately 5.9%, which was derived from our assessment of securitized rates for similar assets and credit quality. We recognized $0.1 million of right-of-use and lease liability amortization during each of the 2020 Quarter and 2019 Quarter and $0.1 million for each of the 2020 Period and 2019 Period, respectively.
The following table sets forth the undiscounted cash flows of our scheduled obligations for future minimum payments on our operating ground lease as of June 30, 2020 and a reconciliation of those cash flows to the operating lease liability as of June 30, 2020 (in thousands):
2020 $ 130   
2021 260   
2022 260   
2023 260   
2024 260   
Thereafter 11,895   
13,065   
Imputed interest (9,216)  
Lease liability $ 3,849