Revenue Recognition

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

The following is a summary of revenue sources for the three and nine months ended September 30, 2023 and 2022.

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Amounts in thousands)	2023		2022		2023		2022
Lease revenues	$	52,954	$	51,921	$	155,502	$	146,440
Parking revenue	1,090		1,189		3,300		3,582
Tenant services	1,369		619		3,225		2,746
Rental revenues	$	55,413	$	53,729	$	162,027	$	152,768

The components of lease revenues for the three and nine months ended September 30, 2023 and 2022 are as follows:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Amounts in thousands)	2023		2022		2023		2022
Fixed lease revenues	$	34,926	$	35,847	$	104,489	$	101,468
Variable lease revenues	18,028		16,074		51,013		44,972
Lease revenues	$	52,954	$	51,921	$	155,502	$	146,440

Bloomberg L.P. (“Bloomberg”) accounted for revenue of $89,863,000 and $81,536,000 for the nine months ended September 30, 2023 and 2022, respectively, representing approximately 55% and 53% of our rental revenues in each period, respectively. No other tenant accounted for more than 10% of our rental revenues. If we were to lose Bloomberg as a tenant, or if Bloomberg were to be unable to fulfill its obligations under its lease, it would adversely affect our results of operations and financial condition. In order to assist us in our continuing assessment of Bloomberg’s creditworthiness, we receive certain confidential financial information and metrics from Bloomberg. In addition, we access and evaluate financial information regarding Bloomberg from other private sources, as well as publicly available data.

On December 3, 2022, IKEA closed its 112,000 square foot store at our Rego Park I property under a lease that was set to expire in December 2030. The lease included a right to terminate effective no earlier than March 16, 2026, subject to payment of rent through the termination date and an additional termination payment equal to the lesser of $10,000,000 or the amount of rent due under the remaining term. On September 27, 2023, we entered into a lease modification agreement with IKEA which accelerates its lease termination date to April 1, 2024. Under the lease modification agreement, IKEA will pay its remaining rent due through March 16, 2026 and the $10,000,000 termination payment over the modified lease term.