| Leasing Transactions, As a Lessee | Leasing Transactions On January 1, 2019, we adopted ASC 842 using the modified retrospective transition method and elected to not restate prior year comparative periods. We elected to adopt the package of practical expedients; accordingly, we retained the lease classification and initial direct costs for any leases that existed prior to adoption and we did not revisit whether any existing or expired contracts contain leases. On the date we adopted ASC 842, we recognized operating lease assets of $1,785,866 and operating lease liabilities of $1,996,957. We also recognized an adjustment to our beginning accumulated deficit of $86,243, net of taxes, consisting of (i) the previously recognized deferred gain on sale leaseback transactions of $113,712, (ii) the previously recognized liability for certain failed sale leaseback transactions recognized as financings of $1,591 and (iii) the related tax effect of $29,060. As a Lessee We have lease agreements covering many of our properties, as well as various equipment, with the most significant leases being our five leases with SVC, which are further described below. Certain of our leases include renewal options and purchase options. Renewal periods are included in calculating our operating lease assets and liabilities when they are reasonably certain. Leases with an initial term of 12 months or less are not recognized in our consolidated balance sheets. As of September 30, 2019, all of our leases were classified as operating leases. Certain of our operating leases provide for variable lease costs, which primarily include percentage rent and our obligation for the estimated cost of removing underground storage tanks under the SVC Leases (as defined below). Our lease costs are included in various balances in our consolidated statements of operations and comprehensive income (loss), as shown in the following table. For the three and nine months ended September 30, 2019, our lease costs consisted of the following: Classification in our Consolidated Three Months Nine Months Operating lease costs: SVC Leases Real estate rent expense $ 59,410 $ 180,954 Operating lease costs: other Real estate rent expense 2,781 8,257 Variable lease costs: SVC Leases Real estate rent expense 1,575 4,461 Variable lease costs: other Real estate rent expense 145 422 Total real estate rent expense 63,911 194,094 Operating lease costs: equipment and other Site level operating expense and selling, general and administrative expense 930 2,147 Short-term lease costs Site level operating expense and selling, general and administrative expense 710 2,255 Sublease income Nonfuel revenues (532) (1,687) Net lease costs $ 65,019 $ 196,809 Maturities of our operating lease liabilities that had remaining noncancelable lease terms in excess of one year as of September 30, 2019, were as follows: SVC Leases (1) Other Total Years ended December 31: 2019 $ 67,856 $ 1,727 $ 69,583 2020 271,336 6,373 277,709 2021 270,799 5,354 276,153 2022 268,936 4,238 273,174 2023 255,343 2,907 258,250 Thereafter 2,289,636 8,195 2,297,831 Total operating lease payments 3,423,906 28,794 3,452,700 Less: present value discount (2) (1,473,109) (5,312) (1,478,421) Present value of operating lease liabilities $ 1,950,797 $ 23,482 $ 1,974,279 (1) Includes rent for properties we sublease from SVC and pay directly to SVC's landlords. (2) The discount rate used to derive the present value of unpaid lease payments is based on the rates implicit in the SVC Leases and our incremental borrowing rate for all other leases. The weighted average remaining lease term as of September 30, 2019, was 13 years. Our weighted average discount rate as of September 30, 2019, was 9.4%. During the nine months ended September 30, 2019, we paid $208,327 for amounts that had been included in the measurement of our operating lease liabilities. As of September 30, 2019, our operating lease assets and liabilities consisted of the following: SVC Leases Other Total Operating lease assets $ 1,780,064 $ 22,330 $ 1,802,394 Current operating lease liabilities 93,627 5,590 99,217 Noncurrent operating lease liabilities 1,857,170 17,892 1,875,062 As previously disclosed in our Annual Report and under the previous lease accounting standard, future minimum lease payments required under leases that had remaining noncancelable lease terms in excess of one year as of December 31, 2018, were as follows (included herein are the full payments then due under the SVC Leases, including the amount attributed to the lease of those sites that were accounted for as a financing as of December 31, 2018, in our consolidated balance sheet as reflected in the sale leaseback financing obligations): Total Years ended December 31: 2019 $ 302,855 2020 301,220 2021 299,393 2022 296,551 2023 295,534 Thereafter 1,980,078 Total $ 3,475,631 The amounts in the table above are as of December 31, 2018, and do not reflect the $43,148 annual minimum rent reduction resulting from the Transaction Agreements entered into in January 2019, as further described below. Leasing Agreements with SVC As of September 30, 2019, we leased from SVC a total of 179 properties under five leases, four of which we refer to as the TA Leases and one of which we refer to as the Petro Lease, and which we refer to collectively as the SVC Leases. In January 2019, we entered into the Transaction Agreements, pursuant to which: • We purchased from SVC 20 travel center properties, which we previously leased from SVC, for a total purchase price of $309,637, including $1,437 of transaction related costs. • As a result of our purchases of the 20 travel center properties, our annual minimum rent due to SVC was reduced by $43,148. • The term of each SVC Lease was extended by three years. • Commencing on April 1, 2019, we began to pay SVC 16 quarterly installments of approximately $4,404 each (an aggregate of $70,458) to fully satisfy and discharge our $150,000 deferred rent obligation to SVC that otherwise would have become due in five installments between 2024 and 2030. We paid to SVC $4,404 and $8,807 in respect of such obligation for the three and nine months ended September 30, 2019, respectively. • Commencing with the year ending December 31, 2020, we will be obligated to pay to SVC an additional amount of percentage rent equal to one-half percent (0.5%) of the excess of our annual nonfuel revenues at leased sites over the nonfuel revenues for each respective site for the year ending December 31, 2019. • Certain of the 179 travel center properties that we continue to lease from SVC were reallocated among the SVC Leases. As a result of the Transaction Agreements, our operating lease assets and liabilities each increased by $23,673. In addition, the purchase of the 20 travel center properties resulted in the derecognition of certain operating lease assets and liabilities. See Note 3 for more information about these acquisitions. On October 14, 2019, we and SVC amended the SVC Leases, pursuant to which, among other things, certain of the 179 travel center properties that we lease from SVC were reallocated among the SVC Leases. The amendments did not have a material impact on our real estate rent expense or operating lease assets and liabilities. In addition to the payment of annual minimum rent, the SVC Leases provide for payment to SVC of percentage rent, calculated at 3.0% of the increase in total nonfuel revenues at each property over base year levels (the base year is 2012 for 35 properties, 2015 for 138 properties, 2017 for two properties, 2019 for three properties and 2020 for one property). The percentage rent amounts due were $1,020 and $1,002 for the three months ended September 30, 2019 and 2018, respectively, and $3,047 and $2,674 for the nine months ended September 30, 2019 and 2018, respectively. As noted above, pursuant to the Transaction Agreements, we are obligated to pay additional percentage rent commencing with the year ended December 31, 2020. We recognized total rent expense under the SVC Leases of $60,985 and $68,513 for the three months ended September 30, 2019 and 2018, respectively, and $185,415 and $204,224 for the nine months ended September 30, 2019 and 2018, respectively. During the nine months ended September 30, 2018, we sold to SVC $44,653 of improvements we made to properties leased from SVC; as a result, pursuant to the terms of the SVC Leases, our annual minimum rent payable to SVC increased by $3,795. During the nine months ended September 30, 2019, we did not sell to SVC any improvements we made to properties leased from SVC. At September 30, 2019, our property and equipment balance included $31,589 of improvements of the type that we historically requested that SVC purchase for an increase in annual minimum rent; however, we may elect not to sell some of those improvements and SVC is not obligated to purchase these improvements. Pursuant to a rent deferral agreement with SVC, deferred rent shall be accelerated and interest shall begin to accrue thereon at 1.0% per month on the deferred rent amounts if certain events occur, including: our default under the SVC Leases; a change of control of us, as defined in the deferral agreement; or our declaration or payment of a dividend or other distribution in respect of our common stock. The total amount of deferred rent outstanding as of September 30, 2019, was $61,651. As permitted by the SVC Leases, we sublease a portion of certain travel centers to third parties to operate other retail operations. These subleases are classified as operating leases. We recognized sublease rental income of $532 and $543 for the three months ended September 30, 2019 and 2018, respectively, and $1,687 and $1,721 for the nine months ended September 30, 2019 and 2018, respectively. The following table summarizes the various amounts related to the SVC Leases that were included in our consolidated balance sheet as of December 31, 2018. December 31, Current SVC Leases liabilities: Accrued rent $ 24,721 Sale leaseback financing obligations (1) 1,032 Straight line rent accrual (2) 2,458 Deferred gain (3) 10,128 Deferred tenant improvements allowance (4) 3,770 Total current SVC Leases liabilities $ 42,109 Noncurrent SVC Leases liabilities: Deferred rent obligation (5) $ 150,000 Sale leaseback financing obligations (1) 22,365 Straight line rent accrual (2) 46,431 Deferred gain (3) 100,913 Deferred tenant improvements allowance (4) 34,047 Total noncurrent SVC Leases liabilities $ 353,756 (1) Sale Leaseback Financing Obligations. As of December 31, 2018, the assets related to two travel centers we leased from SVC were reflected in our consolidated balance sheet, as were the related financing obligations. This accounting was required primarily because, at the time of the inception of the prior leases with SVC, more than a minor portion of these two travel centers was subleased to third parties. Upon adoption of ASC 842, these failed sale leasebacks were reclassified as operating leases, which resulted in a gain that was recognized in our beginning accumulated deficit as of January 1, 2019. See above for more information about the impact of adopting ASC 842. (2) Straight Line Rent Accrual. As of December 31, 2018, the straight line rent accrual included the accrued rent expense from 2007 to 2012 for stated increases in our annual minimum rent due under our then existing TA Lease. The TA Leases we entered into in connection with a transaction agreement we entered into with SVC in 2015 contain no stated rent payment increases. Prior to the adoption of ASC 842, we amortized this accrual on a straight line basis over the current terms of the TA Leases as a reduction of real estate rent expense. The straight line rent accrual also included our obligation for the estimated cost of removing underground storage tanks at properties leased from SVC at the end of the related lease; we recognized these obligations on a straight line basis over the term of the related leases as additional real estate rent expense. As of January 1, 2019, the straight line rent accrual was reclassified as a reduction to our operating lease assets and the obligation for the estimated cost of removal of underground storage tanks was reclassified to other noncurrent liabilities. (3) Deferred Gain. The deferred gain primarily included $145,462 of gains from the sales of travel centers and certain other assets to SVC during 2015 and 2016. Prior to the adoption of ASC 842, we amortized the deferred gains on a straight line basis over the terms of the related leases as a reduction of real estate rent expense. Upon adoption of ASC 842, we recognized the unamortized deferred gain of $85,053, net of taxes, in our beginning accumulated deficit as of January 1, 2019. See above for more information about the impact of adopting ASC 842. (4) Deferred Tenant Improvements Allowance. SVC funded certain capital projects at the properties we lease under the SVC Leases without an increase in rent payable by us. In connection with SVC's initial capital commitment, we recognized a liability for rent deemed to be related to this capital commitment as a deferred tenant improvements allowance. Prior to the adoption of ASC 842, we amortized the deferred tenant improvements allowance on a straight line basis over the terms of the SVC Leases as a reduction of real estate rent expense. Upon the adoption of ASC 842, the unamortized balance of the deferred tenant improvements allowance was reclassified as a reduction to our operating lease assets as of January 1, 2019. (5) Deferred Rent Obligation . Pursuant to a rent deferral agreement with SVC, we previously deferred as of December 31, 2010, a total of $150,000 of rent payable to SVC, which remained outstanding as of December 31, 2018, and had been due in five installments between 2024 and 2030. Upon the adoption of ASC 842, these future lease payments were included in our calculation of our operating lease assets and liabilities and the deferred rent obligation was reclassified as a reduction to our operating lease assets as of January 1, 2019. In January 2019, as described above and pursuant to the terms of the Transaction Agreements, our deferred rent obligation was reduced to $70,458, payable in 16 equal quarterly installments commencing on April 1, 2019, and our operating lease assets and liabilities were remeasured using these revised payment amounts. The total amount of deferred rent outstanding as of September 30, 2019, was $61,651. As a Lessor As of September 30, 2019, we leased two travel centers to franchisees. These two lease agreements expire in June 2022. These leases include rent escalations that are contingent on future events, namely inflation or our investing in capital improvements at these travel centers. During the nine months ended September 30, 2018, we leased four travel centers to franchisees, one of which expired prior to June 30, 2018, and one expired in the three months ended September 30, 2018. Rent revenue from these operating leases totaled $572 and $690 for the three months ended September 30, 2019 and 2018, respectively, and $1,722 and $2,502 for the nine months ended September 30, 2019 and 2018, respectively. Future minimum lease payments due to us for the two leased sites under these operating leases as of September 30, 2019, was $563 for the remainder of 2019, $2,250 for each of the years 2020 and 2021 and $1,125 for 2022. See above for information regarding certain properties that we lease from SVC in which we sublease a portion of the properties to third parties to operate other retail operations. |
| Leasing Transactions, As a Lessor | Leasing Transactions On January 1, 2019, we adopted ASC 842 using the modified retrospective transition method and elected to not restate prior year comparative periods. We elected to adopt the package of practical expedients; accordingly, we retained the lease classification and initial direct costs for any leases that existed prior to adoption and we did not revisit whether any existing or expired contracts contain leases. On the date we adopted ASC 842, we recognized operating lease assets of $1,785,866 and operating lease liabilities of $1,996,957. We also recognized an adjustment to our beginning accumulated deficit of $86,243, net of taxes, consisting of (i) the previously recognized deferred gain on sale leaseback transactions of $113,712, (ii) the previously recognized liability for certain failed sale leaseback transactions recognized as financings of $1,591 and (iii) the related tax effect of $29,060. As a Lessee We have lease agreements covering many of our properties, as well as various equipment, with the most significant leases being our five leases with SVC, which are further described below. Certain of our leases include renewal options and purchase options. Renewal periods are included in calculating our operating lease assets and liabilities when they are reasonably certain. Leases with an initial term of 12 months or less are not recognized in our consolidated balance sheets. As of September 30, 2019, all of our leases were classified as operating leases. Certain of our operating leases provide for variable lease costs, which primarily include percentage rent and our obligation for the estimated cost of removing underground storage tanks under the SVC Leases (as defined below). Our lease costs are included in various balances in our consolidated statements of operations and comprehensive income (loss), as shown in the following table. For the three and nine months ended September 30, 2019, our lease costs consisted of the following: Classification in our Consolidated Three Months Nine Months Operating lease costs: SVC Leases Real estate rent expense $ 59,410 $ 180,954 Operating lease costs: other Real estate rent expense 2,781 8,257 Variable lease costs: SVC Leases Real estate rent expense 1,575 4,461 Variable lease costs: other Real estate rent expense 145 422 Total real estate rent expense 63,911 194,094 Operating lease costs: equipment and other Site level operating expense and selling, general and administrative expense 930 2,147 Short-term lease costs Site level operating expense and selling, general and administrative expense 710 2,255 Sublease income Nonfuel revenues (532) (1,687) Net lease costs $ 65,019 $ 196,809 Maturities of our operating lease liabilities that had remaining noncancelable lease terms in excess of one year as of September 30, 2019, were as follows: SVC Leases (1) Other Total Years ended December 31: 2019 $ 67,856 $ 1,727 $ 69,583 2020 271,336 6,373 277,709 2021 270,799 5,354 276,153 2022 268,936 4,238 273,174 2023 255,343 2,907 258,250 Thereafter 2,289,636 8,195 2,297,831 Total operating lease payments 3,423,906 28,794 3,452,700 Less: present value discount (2) (1,473,109) (5,312) (1,478,421) Present value of operating lease liabilities $ 1,950,797 $ 23,482 $ 1,974,279 (1) Includes rent for properties we sublease from SVC and pay directly to SVC's landlords. (2) The discount rate used to derive the present value of unpaid lease payments is based on the rates implicit in the SVC Leases and our incremental borrowing rate for all other leases. The weighted average remaining lease term as of September 30, 2019, was 13 years. Our weighted average discount rate as of September 30, 2019, was 9.4%. During the nine months ended September 30, 2019, we paid $208,327 for amounts that had been included in the measurement of our operating lease liabilities. As of September 30, 2019, our operating lease assets and liabilities consisted of the following: SVC Leases Other Total Operating lease assets $ 1,780,064 $ 22,330 $ 1,802,394 Current operating lease liabilities 93,627 5,590 99,217 Noncurrent operating lease liabilities 1,857,170 17,892 1,875,062 As previously disclosed in our Annual Report and under the previous lease accounting standard, future minimum lease payments required under leases that had remaining noncancelable lease terms in excess of one year as of December 31, 2018, were as follows (included herein are the full payments then due under the SVC Leases, including the amount attributed to the lease of those sites that were accounted for as a financing as of December 31, 2018, in our consolidated balance sheet as reflected in the sale leaseback financing obligations): Total Years ended December 31: 2019 $ 302,855 2020 301,220 2021 299,393 2022 296,551 2023 295,534 Thereafter 1,980,078 Total $ 3,475,631 The amounts in the table above are as of December 31, 2018, and do not reflect the $43,148 annual minimum rent reduction resulting from the Transaction Agreements entered into in January 2019, as further described below. Leasing Agreements with SVC As of September 30, 2019, we leased from SVC a total of 179 properties under five leases, four of which we refer to as the TA Leases and one of which we refer to as the Petro Lease, and which we refer to collectively as the SVC Leases. In January 2019, we entered into the Transaction Agreements, pursuant to which: • We purchased from SVC 20 travel center properties, which we previously leased from SVC, for a total purchase price of $309,637, including $1,437 of transaction related costs. • As a result of our purchases of the 20 travel center properties, our annual minimum rent due to SVC was reduced by $43,148. • The term of each SVC Lease was extended by three years. • Commencing on April 1, 2019, we began to pay SVC 16 quarterly installments of approximately $4,404 each (an aggregate of $70,458) to fully satisfy and discharge our $150,000 deferred rent obligation to SVC that otherwise would have become due in five installments between 2024 and 2030. We paid to SVC $4,404 and $8,807 in respect of such obligation for the three and nine months ended September 30, 2019, respectively. • Commencing with the year ending December 31, 2020, we will be obligated to pay to SVC an additional amount of percentage rent equal to one-half percent (0.5%) of the excess of our annual nonfuel revenues at leased sites over the nonfuel revenues for each respective site for the year ending December 31, 2019. • Certain of the 179 travel center properties that we continue to lease from SVC were reallocated among the SVC Leases. As a result of the Transaction Agreements, our operating lease assets and liabilities each increased by $23,673. In addition, the purchase of the 20 travel center properties resulted in the derecognition of certain operating lease assets and liabilities. See Note 3 for more information about these acquisitions. On October 14, 2019, we and SVC amended the SVC Leases, pursuant to which, among other things, certain of the 179 travel center properties that we lease from SVC were reallocated among the SVC Leases. The amendments did not have a material impact on our real estate rent expense or operating lease assets and liabilities. In addition to the payment of annual minimum rent, the SVC Leases provide for payment to SVC of percentage rent, calculated at 3.0% of the increase in total nonfuel revenues at each property over base year levels (the base year is 2012 for 35 properties, 2015 for 138 properties, 2017 for two properties, 2019 for three properties and 2020 for one property). The percentage rent amounts due were $1,020 and $1,002 for the three months ended September 30, 2019 and 2018, respectively, and $3,047 and $2,674 for the nine months ended September 30, 2019 and 2018, respectively. As noted above, pursuant to the Transaction Agreements, we are obligated to pay additional percentage rent commencing with the year ended December 31, 2020. We recognized total rent expense under the SVC Leases of $60,985 and $68,513 for the three months ended September 30, 2019 and 2018, respectively, and $185,415 and $204,224 for the nine months ended September 30, 2019 and 2018, respectively. During the nine months ended September 30, 2018, we sold to SVC $44,653 of improvements we made to properties leased from SVC; as a result, pursuant to the terms of the SVC Leases, our annual minimum rent payable to SVC increased by $3,795. During the nine months ended September 30, 2019, we did not sell to SVC any improvements we made to properties leased from SVC. At September 30, 2019, our property and equipment balance included $31,589 of improvements of the type that we historically requested that SVC purchase for an increase in annual minimum rent; however, we may elect not to sell some of those improvements and SVC is not obligated to purchase these improvements. Pursuant to a rent deferral agreement with SVC, deferred rent shall be accelerated and interest shall begin to accrue thereon at 1.0% per month on the deferred rent amounts if certain events occur, including: our default under the SVC Leases; a change of control of us, as defined in the deferral agreement; or our declaration or payment of a dividend or other distribution in respect of our common stock. The total amount of deferred rent outstanding as of September 30, 2019, was $61,651. As permitted by the SVC Leases, we sublease a portion of certain travel centers to third parties to operate other retail operations. These subleases are classified as operating leases. We recognized sublease rental income of $532 and $543 for the three months ended September 30, 2019 and 2018, respectively, and $1,687 and $1,721 for the nine months ended September 30, 2019 and 2018, respectively. The following table summarizes the various amounts related to the SVC Leases that were included in our consolidated balance sheet as of December 31, 2018. December 31, Current SVC Leases liabilities: Accrued rent $ 24,721 Sale leaseback financing obligations (1) 1,032 Straight line rent accrual (2) 2,458 Deferred gain (3) 10,128 Deferred tenant improvements allowance (4) 3,770 Total current SVC Leases liabilities $ 42,109 Noncurrent SVC Leases liabilities: Deferred rent obligation (5) $ 150,000 Sale leaseback financing obligations (1) 22,365 Straight line rent accrual (2) 46,431 Deferred gain (3) 100,913 Deferred tenant improvements allowance (4) 34,047 Total noncurrent SVC Leases liabilities $ 353,756 (1) Sale Leaseback Financing Obligations. As of December 31, 2018, the assets related to two travel centers we leased from SVC were reflected in our consolidated balance sheet, as were the related financing obligations. This accounting was required primarily because, at the time of the inception of the prior leases with SVC, more than a minor portion of these two travel centers was subleased to third parties. Upon adoption of ASC 842, these failed sale leasebacks were reclassified as operating leases, which resulted in a gain that was recognized in our beginning accumulated deficit as of January 1, 2019. See above for more information about the impact of adopting ASC 842. (2) Straight Line Rent Accrual. As of December 31, 2018, the straight line rent accrual included the accrued rent expense from 2007 to 2012 for stated increases in our annual minimum rent due under our then existing TA Lease. The TA Leases we entered into in connection with a transaction agreement we entered into with SVC in 2015 contain no stated rent payment increases. Prior to the adoption of ASC 842, we amortized this accrual on a straight line basis over the current terms of the TA Leases as a reduction of real estate rent expense. The straight line rent accrual also included our obligation for the estimated cost of removing underground storage tanks at properties leased from SVC at the end of the related lease; we recognized these obligations on a straight line basis over the term of the related leases as additional real estate rent expense. As of January 1, 2019, the straight line rent accrual was reclassified as a reduction to our operating lease assets and the obligation for the estimated cost of removal of underground storage tanks was reclassified to other noncurrent liabilities. (3) Deferred Gain. The deferred gain primarily included $145,462 of gains from the sales of travel centers and certain other assets to SVC during 2015 and 2016. Prior to the adoption of ASC 842, we amortized the deferred gains on a straight line basis over the terms of the related leases as a reduction of real estate rent expense. Upon adoption of ASC 842, we recognized the unamortized deferred gain of $85,053, net of taxes, in our beginning accumulated deficit as of January 1, 2019. See above for more information about the impact of adopting ASC 842. (4) Deferred Tenant Improvements Allowance. SVC funded certain capital projects at the properties we lease under the SVC Leases without an increase in rent payable by us. In connection with SVC's initial capital commitment, we recognized a liability for rent deemed to be related to this capital commitment as a deferred tenant improvements allowance. Prior to the adoption of ASC 842, we amortized the deferred tenant improvements allowance on a straight line basis over the terms of the SVC Leases as a reduction of real estate rent expense. Upon the adoption of ASC 842, the unamortized balance of the deferred tenant improvements allowance was reclassified as a reduction to our operating lease assets as of January 1, 2019. (5) Deferred Rent Obligation . Pursuant to a rent deferral agreement with SVC, we previously deferred as of December 31, 2010, a total of $150,000 of rent payable to SVC, which remained outstanding as of December 31, 2018, and had been due in five installments between 2024 and 2030. Upon the adoption of ASC 842, these future lease payments were included in our calculation of our operating lease assets and liabilities and the deferred rent obligation was reclassified as a reduction to our operating lease assets as of January 1, 2019. In January 2019, as described above and pursuant to the terms of the Transaction Agreements, our deferred rent obligation was reduced to $70,458, payable in 16 equal quarterly installments commencing on April 1, 2019, and our operating lease assets and liabilities were remeasured using these revised payment amounts. The total amount of deferred rent outstanding as of September 30, 2019, was $61,651. As a Lessor As of September 30, 2019, we leased two travel centers to franchisees. These two lease agreements expire in June 2022. These leases include rent escalations that are contingent on future events, namely inflation or our investing in capital improvements at these travel centers. During the nine months ended September 30, 2018, we leased four travel centers to franchisees, one of which expired prior to June 30, 2018, and one expired in the three months ended September 30, 2018. Rent revenue from these operating leases totaled $572 and $690 for the three months ended September 30, 2019 and 2018, respectively, and $1,722 and $2,502 for the nine months ended September 30, 2019 and 2018, respectively. Future minimum lease payments due to us for the two leased sites under these operating leases as of September 30, 2019, was $563 for the remainder of 2019, $2,250 for each of the years 2020 and 2021 and $1,125 for 2022. See above for information regarding certain properties that we lease from SVC in which we sublease a portion of the properties to third parties to operate other retail operations. |
