Leases

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Leases

Leases

Revenues

Approximate future minimum revenues from rentals under non-cancelable operating leases in effect at June 30, 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)	$	77,800
2021	145,287
2022	125,001
2023	104,559
2024	85,551
Thereafter	273,959
Total	$	812,157

We recognized rental income related to variable lease payments of $21.9 million and $28.0 million for the six months ended June 30, 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 June 30, 2020, the Company’s aggregate portfolio was 93.6% 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 June 30,				Six Months Ended June 30,
Statements of Operations	Classification	2020		2019		2020		2019
		(In thousands)
Operating ground lease cost	Non-recoverable operating expense	$	290	$	290	$	581	$	581
Operating administrative lease cost	General and administrative expense	143		251		291		484
Finance lease cost	Interest Expense	12		13		24		26

Supplemental balance sheet information related to leases is as follows:

Balance Sheet	Classification	June 30, 2020			December 31, 2019
		(In thousands)
ASSETS
Operating lease assets	Operating lease right-of-use assets	$	18,905		$	19,222
Finance lease asset	Land	13,249			13,249
Total leased assets		$	32,154		$	32,471
LIABILITIES
Operating lease liabilities	Operating lease liabilities	$	18,002		$	18,181
Finance lease liability	Finance lease liability	926			926
Total lease liabilities		$	18,928		$	19,107
Weighted Average Remaining Lease Terms
Operating leases		71 years			70 years
Finance lease		13 years			13 years
Weighted Average Incremental Borrowing Rate
Operating leases		6.08		%	6.06		%
Finance lease		5.23		%	5.23		%

Supplemental cash flow information related to leases is as follows:

	Six Months Ended June 30,
	2020		2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	735	$	917
Operating cash flows from finance lease	—		—
Financing cash flows from finance lease	—		—

Maturities of lease liabilities as of June 30, 2020 were as follows:

Maturity of Lease Liabilities	Operating Leases		Finance Lease
	(In thousands)
2020 (remaining)	$	729	$	100
2021	1,469		100
2022	1,482		100
2023	1,495		100
2024	1,118		100
Thereafter	95,478		800
Total lease payments	$	101,771	$	1,300
Less imputed interest	(83,769)		(374)
Total	$	18,002	$	926

Leases

Leases

Revenues

Approximate future minimum revenues from rentals under non-cancelable operating leases in effect at June 30, 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)	$	77,800
2021	145,287
2022	125,001
2023	104,559
2024	85,551
Thereafter	273,959
Total	$	812,157

We recognized rental income related to variable lease payments of $21.9 million and $28.0 million for the six months ended June 30, 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 June 30, 2020, the Company’s aggregate portfolio was 93.6% 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 June 30,				Six Months Ended June 30,
Statements of Operations	Classification	2020		2019		2020		2019
		(In thousands)
Operating ground lease cost	Non-recoverable operating expense	$	290	$	290	$	581	$	581
Operating administrative lease cost	General and administrative expense	143		251		291		484
Finance lease cost	Interest Expense	12		13		24		26

Supplemental balance sheet information related to leases is as follows:

Balance Sheet	Classification	June 30, 2020			December 31, 2019
		(In thousands)
ASSETS
Operating lease assets	Operating lease right-of-use assets	$	18,905		$	19,222
Finance lease asset	Land	13,249			13,249
Total leased assets		$	32,154		$	32,471
LIABILITIES
Operating lease liabilities	Operating lease liabilities	$	18,002		$	18,181
Finance lease liability	Finance lease liability	926			926
Total lease liabilities		$	18,928		$	19,107
Weighted Average Remaining Lease Terms
Operating leases		71 years			70 years
Finance lease		13 years			13 years
Weighted Average Incremental Borrowing Rate
Operating leases		6.08		%	6.06		%
Finance lease		5.23		%	5.23		%

Supplemental cash flow information related to leases is as follows:

	Six Months Ended June 30,
	2020		2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	735	$	917
Operating cash flows from finance lease	—		—
Financing cash flows from finance lease	—		—

Maturities of lease liabilities as of June 30, 2020 were as follows:

Maturity of Lease Liabilities	Operating Leases		Finance Lease
	(In thousands)
2020 (remaining)	$	729	$	100
2021	1,469		100
2022	1,482		100
2023	1,495		100
2024	1,118		100
Thereafter	95,478		800
Total lease payments	$	101,771	$	1,300
Less imputed interest	(83,769)		(374)
Total	$	18,002	$	926

Leases

Leases

Revenues

Approximate future minimum revenues from rentals under non-cancelable operating leases in effect at June 30, 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)	$	77,800
2021	145,287
2022	125,001
2023	104,559
2024	85,551
Thereafter	273,959
Total	$	812,157

We recognized rental income related to variable lease payments of $21.9 million and $28.0 million for the six months ended June 30, 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 June 30, 2020, the Company’s aggregate portfolio was 93.6% 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 June 30,				Six Months Ended June 30,
Statements of Operations	Classification	2020		2019		2020		2019
		(In thousands)
Operating ground lease cost	Non-recoverable operating expense	$	290	$	290	$	581	$	581
Operating administrative lease cost	General and administrative expense	143		251		291		484
Finance lease cost	Interest Expense	12		13		24		26

Supplemental balance sheet information related to leases is as follows:

Balance Sheet	Classification	June 30, 2020			December 31, 2019
		(In thousands)
ASSETS
Operating lease assets	Operating lease right-of-use assets	$	18,905		$	19,222
Finance lease asset	Land	13,249			13,249
Total leased assets		$	32,154		$	32,471
LIABILITIES
Operating lease liabilities	Operating lease liabilities	$	18,002		$	18,181
Finance lease liability	Finance lease liability	926			926
Total lease liabilities		$	18,928		$	19,107
Weighted Average Remaining Lease Terms
Operating leases		71 years			70 years
Finance lease		13 years			13 years
Weighted Average Incremental Borrowing Rate
Operating leases		6.08		%	6.06		%
Finance lease		5.23		%	5.23		%

Supplemental cash flow information related to leases is as follows:

	Six Months Ended June 30,
	2020		2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	735	$	917
Operating cash flows from finance lease	—		—
Financing cash flows from finance lease	—		—

Maturities of lease liabilities as of June 30, 2020 were as follows:

Maturity of Lease Liabilities	Operating Leases		Finance Lease
	(In thousands)
2020 (remaining)	$	729	$	100
2021	1,469		100
2022	1,482		100
2023	1,495		100
2024	1,118		100
Thereafter	95,478		800
Total lease payments	$	101,771	$	1,300
Less imputed interest	(83,769)		(374)
Total	$	18,002	$	926