Leases

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases

Leases

Revenues

Approximate future minimum revenues from rentals under non-cancelable operating leases in effect at March 31, 2020, assuming no new or renegotiated leases or option extensions on lease agreements and no early lease terminations were as follows:

Year Ending December 31,
	(In thousands)
2020 (remaining)	$	117,448
2021	143,081
2022	121,427
2023	100,704
2024	82,238
Thereafter	269,735
Total	$	834,633

We recognized rental income related to variable lease payments of $11.3 million and $13.7 million for the three months ended March 31, 2020 and 2019, respectively.

Substantially all of the assets included as Income producing properties, net on the condensed consolidated balance sheets, relate to our portfolio of wholly owned shopping centers, in which we are the lessor under operating leases with our tenants. As of March 31, 2020, the Company’s aggregate portfolio was 94.1% leased.

Expenses

We have operating leases for our two corporate offices in New York, New York and Southfield, Michigan, that expire in January 2024 and December 2024, respectively. Our operating lease in New York includes an additional five year renewal and our operating lease in Southfield includes two additional five year renewals which are all exercisable at our option. We also have an operating ground lease at Centennial Shops located in Edina, Minnesota which includes rent escalations throughout the lease period and expires in April 2105. In addition, we have a finance ground lease at our Buttermilk Towne Center with the City of Crescent Springs that expires in December 2032. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expenses for these leases on a straight-line basis over the lease term.

The components of lease expense were as follows:

		Three Months Ended March 31,
Statements of Operations	Classification	2020		2019
		(In thousands)
Operating ground lease cost	Non-recoverable operating expense	$	291	$	291
Operating administrative lease cost	General and administrative expense	148		233
Finance lease cost	Interest Expense	12		13

Supplemental balance sheet information related to leases is as follows:

Balance Sheet	Classification	March 31, 2020			December 31, 2019
		(In thousands)
ASSETS
Operating lease assets	Operating lease right-of-use assets	$	19,064		$	19,222
Finance lease asset	Land	13,249			13,249
Total leased assets		$	32,313		$	32,471
LIABILITIES
Operating lease liabilities	Operating lease liabilities	$	18,092		$	18,181
Finance lease liability	Finance lease liability	926			926
Total lease liabilities		$	19,018		$	19,107
Weighted Average Remaining Lease Terms
Operating leases		70 years			70 years
Finance lease		13 years			13 years
Weighted Average Incremental Borrowing Rate
Operating leases		6.07		%	6.06		%
Finance lease		5.23		%	5.23		%

Supplemental cash flow information related to leases is as follows:

	Three Months Ended March 31,
	2020		2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	370	$	434
Operating cash flows from finance lease	—		—
Financing cash flows from finance lease	—		—

Maturities of lease liabilities as of March 31, 2020 were as follows:

Maturity of Lease Liabilities	Operating Leases		Finance Lease
	(In thousands)
2020 (remaining)	$	1,092	$	100
2021	1,469		100
2022	1,482		100
2023	1,495		100
2024	1,118		100
Thereafter	95,478		800
Total lease payments	$	102,134	$	1,300
Less imputed interest	(84,042)		(374)
Total	$	18,092	$	926

Leases

Leases

Revenues

Approximate future minimum revenues from rentals under non-cancelable operating leases in effect at March 31, 2020, assuming no new or renegotiated leases or option extensions on lease agreements and no early lease terminations were as follows:

Year Ending December 31,
	(In thousands)
2020 (remaining)	$	117,448
2021	143,081
2022	121,427
2023	100,704
2024	82,238
Thereafter	269,735
Total	$	834,633

We recognized rental income related to variable lease payments of $11.3 million and $13.7 million for the three months ended March 31, 2020 and 2019, respectively.

Substantially all of the assets included as Income producing properties, net on the condensed consolidated balance sheets, relate to our portfolio of wholly owned shopping centers, in which we are the lessor under operating leases with our tenants. As of March 31, 2020, the Company’s aggregate portfolio was 94.1% leased.

Expenses

We have operating leases for our two corporate offices in New York, New York and Southfield, Michigan, that expire in January 2024 and December 2024, respectively. Our operating lease in New York includes an additional five year renewal and our operating lease in Southfield includes two additional five year renewals which are all exercisable at our option. We also have an operating ground lease at Centennial Shops located in Edina, Minnesota which includes rent escalations throughout the lease period and expires in April 2105. In addition, we have a finance ground lease at our Buttermilk Towne Center with the City of Crescent Springs that expires in December 2032. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expenses for these leases on a straight-line basis over the lease term.

The components of lease expense were as follows:

		Three Months Ended March 31,
Statements of Operations	Classification	2020		2019
		(In thousands)
Operating ground lease cost	Non-recoverable operating expense	$	291	$	291
Operating administrative lease cost	General and administrative expense	148		233
Finance lease cost	Interest Expense	12		13

Supplemental balance sheet information related to leases is as follows:

Balance Sheet	Classification	March 31, 2020			December 31, 2019
		(In thousands)
ASSETS
Operating lease assets	Operating lease right-of-use assets	$	19,064		$	19,222
Finance lease asset	Land	13,249			13,249
Total leased assets		$	32,313		$	32,471
LIABILITIES
Operating lease liabilities	Operating lease liabilities	$	18,092		$	18,181
Finance lease liability	Finance lease liability	926			926
Total lease liabilities		$	19,018		$	19,107
Weighted Average Remaining Lease Terms
Operating leases		70 years			70 years
Finance lease		13 years			13 years
Weighted Average Incremental Borrowing Rate
Operating leases		6.07		%	6.06		%
Finance lease		5.23		%	5.23		%

Supplemental cash flow information related to leases is as follows:

	Three Months Ended March 31,
	2020		2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	370	$	434
Operating cash flows from finance lease	—		—
Financing cash flows from finance lease	—		—

Maturities of lease liabilities as of March 31, 2020 were as follows:

Maturity of Lease Liabilities	Operating Leases		Finance Lease
	(In thousands)
2020 (remaining)	$	1,092	$	100
2021	1,469		100
2022	1,482		100
2023	1,495		100
2024	1,118		100
Thereafter	95,478		800
Total lease payments	$	102,134	$	1,300
Less imputed interest	(84,042)		(374)
Total	$	18,092	$	926

Leases

Leases

Revenues

Approximate future minimum revenues from rentals under non-cancelable operating leases in effect at March 31, 2020, assuming no new or renegotiated leases or option extensions on lease agreements and no early lease terminations were as follows:

Year Ending December 31,
	(In thousands)
2020 (remaining)	$	117,448
2021	143,081
2022	121,427
2023	100,704
2024	82,238
Thereafter	269,735
Total	$	834,633

We recognized rental income related to variable lease payments of $11.3 million and $13.7 million for the three months ended March 31, 2020 and 2019, respectively.

Substantially all of the assets included as Income producing properties, net on the condensed consolidated balance sheets, relate to our portfolio of wholly owned shopping centers, in which we are the lessor under operating leases with our tenants. As of March 31, 2020, the Company’s aggregate portfolio was 94.1% leased.

Expenses

We have operating leases for our two corporate offices in New York, New York and Southfield, Michigan, that expire in January 2024 and December 2024, respectively. Our operating lease in New York includes an additional five year renewal and our operating lease in Southfield includes two additional five year renewals which are all exercisable at our option. We also have an operating ground lease at Centennial Shops located in Edina, Minnesota which includes rent escalations throughout the lease period and expires in April 2105. In addition, we have a finance ground lease at our Buttermilk Towne Center with the City of Crescent Springs that expires in December 2032. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expenses for these leases on a straight-line basis over the lease term.

The components of lease expense were as follows:

		Three Months Ended March 31,
Statements of Operations	Classification	2020		2019
		(In thousands)
Operating ground lease cost	Non-recoverable operating expense	$	291	$	291
Operating administrative lease cost	General and administrative expense	148		233
Finance lease cost	Interest Expense	12		13

Supplemental balance sheet information related to leases is as follows:

Balance Sheet	Classification	March 31, 2020			December 31, 2019
		(In thousands)
ASSETS
Operating lease assets	Operating lease right-of-use assets	$	19,064		$	19,222
Finance lease asset	Land	13,249			13,249
Total leased assets		$	32,313		$	32,471
LIABILITIES
Operating lease liabilities	Operating lease liabilities	$	18,092		$	18,181
Finance lease liability	Finance lease liability	926			926
Total lease liabilities		$	19,018		$	19,107
Weighted Average Remaining Lease Terms
Operating leases		70 years			70 years
Finance lease		13 years			13 years
Weighted Average Incremental Borrowing Rate
Operating leases		6.07		%	6.06		%
Finance lease		5.23		%	5.23		%

Supplemental cash flow information related to leases is as follows:

	Three Months Ended March 31,
	2020		2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	370	$	434
Operating cash flows from finance lease	—		—
Financing cash flows from finance lease	—		—

Maturities of lease liabilities as of March 31, 2020 were as follows:

Maturity of Lease Liabilities	Operating Leases		Finance Lease
	(In thousands)
2020 (remaining)	$	1,092	$	100
2021	1,469		100
2022	1,482		100
2023	1,495		100
2024	1,118		100
Thereafter	95,478		800
Total lease payments	$	102,134	$	1,300
Less imputed interest	(84,042)		(374)
Total	$	18,092	$	926