Net Investment In Sales-type Leases and Ground Lease Receivables
 12 Months Ended
Dec. 31, 2019
Leases [Abstract]  
Net Investment In Sales-type Leases and Ground Lease Receivables Net Investment in Sales-type Leases and Ground Lease Receivables
On January 1, 2019, the Company adopted ASU 2016-02 and ASU 2018-11. As a result of the adoption of ASU 2016-02, the Company, as lessor, classifies certain Ground Leases entered into or acquired subsequent to December 31, 2018 as sales-type leases and records the leases within "Net investment in sales-type leases" on the Company's consolidated balance sheets and records interest income in "Interest income from sales-type leases" in the Company's consolidated statements of operations (refer to Note 3). In addition, during the year ended December 31, 2019, the Company entered into transactions whereby it acquired land and entered into Ground Leases directly with the seller. The Ground Leases qualified as sales-type leases and, as such, did not qualify for sale leaseback accounting and are accounted for as financing receivables in accordance with ASC 310 and are included in "Ground Lease receivables" on the Company's consolidated balance sheets (refer to Note 3). The Company records interest income from Ground Lease receivables in "Interest income from sales-type leases" in the Company's consolidated statements of operations.
The following table presents a rollforward of the Company's net investment in sales-type leases and Ground Lease receivables for the year ended December 31, 2019 ($ in thousands):
 
 
Net Investment in Sales-type Leases
 
Ground Lease
Receivables
 
Total
Beginning balance(1)
 
$
—

 
$
—

 
$
—

Origination/acquisition(2)
 
979,057

 
396,081

 
1,375,138

Accretion (amortization)
 
5,541

 
1,006

 
6,547

Ending balance
 
$
984,598

 
$
397,087

 
$
1,381,685

_______________________________________________________________________________
(1)
The Company elected a provision provided by ASU 2018-11 that allowed entities to not recast the comparative periods presented when transitioning to ASC 842 by allowing entities to change their initial application to the beginning of the period of adoption. As a result, the Company did not have any adjustments to its financial statements as of or prior to December 31, 2018.
(2)
The net investment in sales-type leases is initially measured at the present value of the fixed and determinable lease payments, including any guaranteed or unguaranteed residual value of the asset at the end of the lease, discounted at the rate implicit in the lease. For newly originated or acquired Ground Leases, the Company's estimate of residual value equals the fair value of the land at lease commencement. As of December 31, 2019, the Company's weighted average accrual rate for its net investment in sales-type leases and Ground Lease receivables was 5.6% and 5.4%, respectively. As of December 31, 2019, the weighted average remaining life of the Company's six Ground Lease receivables was 102.5 years.

Future Minimum Lease Payments under Sales-type Leases—Future minimum lease payments to be collected under sales-type leases accounted for under ASC 842, excluding lease payments that are not fixed and determinable, in effect as of December 31, 2019, are as follows by year ($ in thousands):
 
 
Fixed Bumps with Inflation Adjustments
 
Fixed Bumps with
Percentage Rent
 
Total
2020
 
$
33,967

 
$
532

 
$
34,499

2021
 
34,663

 
532

 
35,195

2022
 
35,642

 
537

 
36,179

2023
 
36,720

 
586

 
37,306

2024
 
38,759

 
586

 
39,345

Thereafter
 
11,016,998

 
101,834

 
11,118,832

Total undiscounted cash flows
 
11,196,749

 
104,607

 
11,301,356

Unguaranteed estimated residual value
 
 
 
 
 
979,057

Present value discount
 
 
 
 
 
(11,295,815
)
Net investment in sales-type leases as of December 31, 2019
 
 
 
 
 
$
984,598



During the year ended December 31, 2019, the Company recognized interest income from sales-type leases in its consolidated statements of operations as follows ($ in thousands):
 
 
Net Investment in Sales-type Leases
 
Ground
Lease Receivables
 
Total
Cash
 
$
10,086

 
$
1,898

 
$
11,984

Non-cash
 
5,541

 
1,006

 
6,547

Total interest income from sales-type leases
 
$
15,627

 
$
2,904

 
$
18,531