Leases

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Leases of Lessor Disclosure

3. LEASES

Lessor—The majority of our leases are largely similar in that the leased asset is retail space within our properties, and the lease agreements generally contain similar provisions and features, without substantial variations. All of our leases are currently classified as operating leases. Lease income related to our operating leases was as follows for the three and six months ended June 30, 2020 and 2019 (dollars in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Rental income related to fixed lease payments	$	97,276		$	98,841		$	195,510		$	196,354
Rental income related to variable lease payments	30,659			28,951			62,497			59,478
Amortization of lease assets	786			1,080			1,565			2,198
Lease buyout income	214			223			308			456
Adjustments for collectability(1)	(13,281		)	(65		)	(15,760		)	(596		)
Total rental income	$	115,654		$	129,030		$	244,120		$	257,890

⁽¹⁾  Contains general reserves as well as revenue adjustments for tenants deemed to be non-creditworthy.

Approximate future fixed contractual lease payments to be received under non-cancelable operating leases in effect as of June 30, 2020, assuming no new or renegotiated leases or option extensions on lease agreements, are as follows (in thousands):

Year	Amount
Remaining 2020	$	191,883
2021	353,229
2022	316,888
2023	268,211
2024	212,229
Thereafter	569,201
Total	$	1,911,641

As of June 30, 2020, executed payment plans and rent concessions related to the COVID-19 pandemic were not material.

No single tenant comprised 10% or more of our aggregate annualized base rent (“ABR”) as of June 30, 2020. As of June 30, 2020, our real estate investments in Florida and California represented 12.3% and 10.6% of our ABR, respectively. As a result, the geographic concentration of our portfolio makes it particularly susceptible to adverse weather or economic events, including the impact of the COVID-19 pandemic, in the Florida and California real estate markets.

Lessee—Lease assets and liabilities, grouped by balance sheet line where they are recorded, consisted of the following as of June 30, 2020 and December 31, 2019 (in thousands):

Balance Sheet Information	Balance Sheet Location	June 30, 2020		December 31, 2019
ROU assets, net - operating leases(1)	Investment in Real Estate	$	3,924	$	7,613
ROU assets, net - operating and finance leases	Other Assets, Net	2,198		2,111
Operating lease liability	Accounts Payable and Other Liabilities	6,030		9,453
Finance lease liability	Debt Obligations, Net	312		443

⁽¹⁾  During the six months ended June 30, 2020, one of our acquisitions was land upon which one of our shopping centers is situated that was previously subject to a ground lease in which the lessor controlled an option requiring us to purchase the land subject to the lease. Our valuation of the ROU asset and lease liability as of December 31, 2019 for this ground lease reflected the assumption that the lessor would exercise this option and that we would purchase the underlying land asset.

Leases of Lessee Disclosure

3. LEASES

Lessor—The majority of our leases are largely similar in that the leased asset is retail space within our properties, and the lease agreements generally contain similar provisions and features, without substantial variations. All of our leases are currently classified as operating leases. Lease income related to our operating leases was as follows for the three and six months ended June 30, 2020 and 2019 (dollars in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Rental income related to fixed lease payments	$	97,276		$	98,841		$	195,510		$	196,354
Rental income related to variable lease payments	30,659			28,951			62,497			59,478
Amortization of lease assets	786			1,080			1,565			2,198
Lease buyout income	214			223			308			456
Adjustments for collectability(1)	(13,281		)	(65		)	(15,760		)	(596		)
Total rental income	$	115,654		$	129,030		$	244,120		$	257,890

⁽¹⁾  Contains general reserves as well as revenue adjustments for tenants deemed to be non-creditworthy.

Approximate future fixed contractual lease payments to be received under non-cancelable operating leases in effect as of June 30, 2020, assuming no new or renegotiated leases or option extensions on lease agreements, are as follows (in thousands):

Year	Amount
Remaining 2020	$	191,883
2021	353,229
2022	316,888
2023	268,211
2024	212,229
Thereafter	569,201
Total	$	1,911,641

As of June 30, 2020, executed payment plans and rent concessions related to the COVID-19 pandemic were not material.

No single tenant comprised 10% or more of our aggregate annualized base rent (“ABR”) as of June 30, 2020. As of June 30, 2020, our real estate investments in Florida and California represented 12.3% and 10.6% of our ABR, respectively. As a result, the geographic concentration of our portfolio makes it particularly susceptible to adverse weather or economic events, including the impact of the COVID-19 pandemic, in the Florida and California real estate markets.

Lessee—Lease assets and liabilities, grouped by balance sheet line where they are recorded, consisted of the following as of June 30, 2020 and December 31, 2019 (in thousands):

Balance Sheet Information	Balance Sheet Location	June 30, 2020		December 31, 2019
ROU assets, net - operating leases(1)	Investment in Real Estate	$	3,924	$	7,613
ROU assets, net - operating and finance leases	Other Assets, Net	2,198		2,111
Operating lease liability	Accounts Payable and Other Liabilities	6,030		9,453
Finance lease liability	Debt Obligations, Net	312		443

⁽¹⁾  During the six months ended June 30, 2020, one of our acquisitions was land upon which one of our shopping centers is situated that was previously subject to a ground lease in which the lessor controlled an option requiring us to purchase the land subject to the lease. Our valuation of the ROU asset and lease liability as of December 31, 2019 for this ground lease reflected the assumption that the lessor would exercise this option and that we would purchase the underlying land asset.