LEASES

3 Months Ended

Mar. 31, 2023

Operating Leases, Future Minimum Payments Receivable [Abstract]

4. LEASES

Operating Leases

The Company’s real estate properties are leased to tenants under operating leases for which the terms and expirations vary. As of March 31, 2023, the leases at the Company’s properties have remaining terms (excluding options to extend) of up to 9.1 years with a weighted-average remaining term (excluding options to extend) of approximately 5.5 years. The leases may have provisions to extend the lease agreements, options for early termination after paying a specified penalty, rights of first refusal to purchase the property at competitive market rates, and other terms and conditions as negotiated. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. Generally, upon the execution of a lease, the Company requires security deposits from tenants in the form of a cash deposit and/or a letter of credit. Amounts required as security deposits vary depending upon the terms of the respective leases and the creditworthiness of the tenant, but generally are not significant amounts. Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of its security deposit. Security deposits received in cash related to tenant leases are included in other liabilities in the accompanying condensed consolidated balance sheets and totaled approximately $0.1 million as of March 31, 2023 and December 31, 2022, respectively.

The following table presents the components of income from real estate operations for the three months ended March 31, 2023 and 2022 (amounts in thousands):


	Three Months Ended March 31,
		2023		2022
Lease income - operating leases		$	477	$	577
Variable lease income (1)		150		157
Rental and reimbursements income		$	627	$	734

(1)Primarily includes tenant reimbursements for real estate taxes, insurance, consideration based on sales, common area maintenance, utilities, marketing, and certain other items including negative variable lease income.

As of March 31, 2023 and December 31, 2022, approximately $679 thousand and $631 thousand of straight-line rent receivable was included in tenant receivables in the condensed consolidated balance sheets, respectively.

As of March 31, 2023, the future minimum rental income from the Company’s properties under non-cancelable operating leases, was as follows (amounts in thousands):


Remainder 2023	$	1,369
2024	1,860
2025	1,763
2026	1,476
2027	1,121
Thereafter	4,720
Total	$	12,309