Leases

9 Months Ended

Sep. 30, 2024

14.

Leases

We lease office, retail and storage space to tenants, primarily under non-cancellable operating leases which generally have terms ranging from five to fifteen years. Most of our leases provide tenants with extension options at either fixed or market rates and few of our leases provide tenants with options to early terminate, but such options generally impose an economic penalty on the tenant upon exercising. Rental revenue is recognized in accordance with ASC Topic 842, Leases, and includes (i) fixed payments of cash rents, which represent revenue each tenant pays in accordance with the terms of its respective lease and that is recognized on a straight-line basis over the non-cancellable term of the lease, and includes the effects of rent steps and rent abatements under the leases, (ii) variable payments of tenant reimbursements, which are recoveries of all or a portion of the operating expenses and real estate taxes of the property and are recognized in the same period as the expenses are incurred, (iii) amortization of acquired above and below-market leases, net and (iv) lease termination income.

The following table sets forth the details of our rental revenue.


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Amounts in thousands)	2024		2023		2024		2023
Rental revenue:
Fixed	$	156,190	$	160,107	$	475,420	$	474,931
Variable		28,045		22,408		68,216		54,803
Total rental revenue	$	184,235	$	182,515	$	543,636	$	529,734

The following table is a schedule of future undiscounted cash flows under non-cancellable operating leases in effect as of September 30, 2024, for the three-month period from October 1, 2024 through December 31, 2024, and each of the five succeeding years and thereafter commencing January 1, 2025.


(Amounts in thousands)
2024	$	150,933
2025		584,675
2026		512,175
2027		456,147
2028		451,922
2029		431,564
Thereafter		1,736,414
Total	$	4,323,830