Quarterly report pursuant to Section 13 or 15(d)

Leasing Activity

v3.19.3
Leasing Activity
9 Months Ended
Sep. 30, 2019
Leasing Activity [Abstract]  
Leasing Activity 4. Leasing activity

The Company leases space in its commercial real estate facilities to customers primarily under non-cancelable leases generally ranging from one to 10 years. Future minimum rental income, excluding recovery of operating expenses under these leases, is as follows as of September 30, 2019 (in thousands):

Remainder of 2019

$

74,648 

2020

266,240 

2021

205,616 

2022

143,955 

2023

98,747 

Thereafter

146,129 

Total (1)

$

935,335 

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(1)Excludes future minimum rental income from assets held for sale.

In addition to minimum rental payments, certain customers reimburse the Company for their pro rata share of specified property operating expenses. Such reimbursements amounted to $24.0 million and $22.9 million for the three months ended September 30, 2019 and 2018, respectively, and $73.0 million and $69.1 million for the nine months ended September 30, 2019 and 2018, respectively. These variable lease payment amounts are included as rental income in the accompanying consolidated statements of income.

Leases accounting for 3.3% of total leased square footage are subject to termination options, of which 1.4% of total leased square footage have termination options exercisable through December 31, 2019. In general, these leases provide for termination payments to us should the termination options be exercised. Certain leases also have an option to extend the terms of the lease. The future minimum rental income in the above table assumes termination options and lease extension options are not exercised.