Leases

3 Months Ended

Mar. 31, 2022

7. LEASES

As Lessee

We have entered into ground leases for portions of the land at Springfield Town Center and Plymouth Meeting Mall. We have also entered into an office lease for our headquarters location, as well as vehicle, solar panel and equipment leases as a lessee. The initial terms of these agreements generally range from three to 40 years, with certain agreements containing extension options for up to an additional 60 years. Upon lease execution, the Company measures a liability for the present value of future lease payments over the noncancelable period of the lease and any renewal option period we are reasonably certain of exercising. Certain agreements require that we pay a portion of reimbursable expenses such as CAM, utilities, insurance and real estate taxes. These payments are not included in the calculation of the lease liability and are presented as variable lease costs.

Our leases do not provide a readily determinable implicit interest rate; therefore, we estimate our incremental borrowing rate to calculate the present value of remaining lease payments. In determining our incremental borrowing rate, we considered the lease term, market interest rates and estimates regarding our implied credit rating using market data with adjustments to determine an appropriate incremental borrowing rate.

The following table presents additional information pertaining to the Company’s leases:


	Three Months Ended March 31,
	2022								2021
(in thousands of dollars)	Solar Panel Leases		Ground Leases		Office, equipment, and vehicle leases		Total		Solar Panel Leases		Ground Leases		Office, equipment, and vehicle leases		Total
Finance lease cost:
Amortization of right-of-use assets	$	202	$	—	$	—	$	202	$	202	$	—	$	—	$	202
Interest on lease liabilities		78		—		—		78		63		—		—		63
Operating lease costs		—		585		68		653		—		436		311		747
Variable lease costs		—		46		206		252		—		45		63		108
Total lease costs	$	280	$	631	$	274	$	1,185	$	265	$	481	$	374	$	1,120

Other information related to leases as of and for the three months ended March 31, 2022 and 2021 are as follows:


(in thousands of dollars)	2022			2021
Cash paid for the amounts included in the measurement of lease liabilities
Operating cash flows used for finance leases	$	63		$	63
Operating cash flows used for operating leases	$	653		$	552
Financing cash flows used for finance leases	$	185		$	184
Weighted average remaining lease term-finance leases (months)		72			83
Weighted average remaining lease term-operating leases (months)		292			296
Weighted average discount rate-finance leases		4.34	%		4.35	%
Weighted average discount rate-operating leases		6.44	%		6.44	%

Future payments against lease liabilities, which are recorded in Accrued expenses and other liabilities, as of March 31, 2022 are as follows:


(in thousands of dollars)	Finance leases			Operating leases			Total
April 1 to December 31, 2022	$	740		$	1,951		$	2,691
2023		983			2,556			3,539
2024		949			2,471			3,420
2025		929			2,427			3,356
2026		925			2,429			3,354
Thereafter		1,148			48,658			49,806
Total undiscounted lease payments		5,674			60,492			66,166
Less imputed interest		(686	)		(31,147	)		(31,833	)
Total lease liabilities	$	4,988		$	29,345		$	34,333

As Lessor

As of March 31, 2022, the fixed contractual lease payments, including minimum rents and fixed CAM amounts, to be received over the next five years pursuant to the terms of noncancelable operating leases with initial terms greater than one year are included in the table below. The amounts presented assume that no leases are renewed and no renewal options are exercised. Additionally, the table does not include variable lease payments that may be received under certain leases for percentage rents or the reimbursement of operating costs, such as common area expenses, utilities, insurance and real estate taxes. These variable lease payments are recognized in the period when the applicable expenditures are incurred or, in the case of percentage rents, when the sales data is made available.


(in thousands of dollars)
April 1 to December 31, 2022	$	138,433
2023		167,308
2024		144,553
2025		115,992
2026		96,854
Thereafter		248,425
	$	911,565