Leases

12 Months Ended

Dec. 31, 2024

Lessee

The Company is engaged in the operation of shopping centers that are either owned or, with respect to certain shopping centers, operated under long-term ground leases that expire at various dates through 2068. The Company also leases office space in the ordinary course of business under lease agreements that expire at various dates through 2030. Certain of the lease agreements include variable payments for reimbursement of common area expenses. The Company determines if an arrangement is a lease at inception.

Operating lease ROU assets and operating lease liabilities are included in the Company’s consolidated balance sheets as follows (in thousands):


		December 31,
	Classification	2024		2023
Operating Lease ROU Assets	Other Assets, Net	$	15,818	$	17,373
Operating Lease Liabilities	Accounts Payable and Other Liabilities		35,532		37,108

Operating lease expenses, including straight-line expense, included in Operating and Maintenance Expense for the Company’s ground leases and General and Administrative expense for its office leases are as follows (in thousands):


	December 31,
Classification	2024		2023		2022
Operating and Maintenance	$	1,923	$	2,209	$	2,596
General and Administrative(A)		2,290		2,303		2,213
Total lease costs	$	4,213	$	4,512	$	4,809

(A)

Includes short-term leases and variable lease costs, which are immaterial.

Supplemental balance sheet information related to operating leases was as follows:


	December 31,
	2024			2023
Weighted-Average Remaining Lease Term	35.1 years			35.1 years
Weighted-Average Discount Rate		7.5	%		7.5	%
Cash paid for amounts included in the measurement — operating cash flows from lease liabilities (in thousands)	$	3,704		$	3,598

As determined under Topic 842, maturities of lease liabilities were as follows for the years ended December 31, (in thousands):


Year	December 31,
2025	$	3,754
2026		3,855
2027		3,785
2028		3,821
2029		3,156
Thereafter		98,552
Total lease payments		116,923
Less imputed interest		(81,391	)
Total	$	35,532

Lessor

Space in the Company’s shopping centers is leased to tenants pursuant to agreements that provide for terms generally ranging from one month to 15 years and for rents which, in some cases, are subject to upward adjustments based on operating expense levels, sales volume or contractual increases as defined in the lease agreements.

The Shared Services Agreement includes Curbline’s right to use the Company’s office space in New York. This arrangement is considered an embedded lease based on the criteria specified in Topic 842. The sublease income received under the Shared Services Agreement (Note 13) is included in Rental Income on the Company’s consolidated statements of operations.

The disaggregation of the Company’s lease income, which is included in Rental Income on the Company’s consolidated statements of operations, as either fixed or variable lease income based on the criteria specified in ASC 842, for the years ended December 31, 2024, 2023 and 2022, was as follows (in thousands):


	Year Ended December 31,
	2024		2023			2022
Rental income:
Fixed lease income(A)	$	193,890	$	319,791		$	339,805
Variable lease income(B)		73,313		113,588			119,238
Above-market and below-market leases amortization, net		1,381		11,693			3,616
Adjustments for potentially uncollectible revenues and disputed amounts(C)		702		(1,010	)		1,593
Total rental income	$	269,286	$	444,062		$	464,252

(A)

Includes minimum base rents, expense reimbursements, ancillary income and straight-line rent adjustments.

(B)

Includes expense reimbursements, percentage and overage rent, lease termination fee income and ancillary income.

(C)

The amounts represent adjustments associated with potentially uncollectible revenues and disputed amounts.

The scheduled future minimum rental income from rental properties under the terms of all non-cancelable tenant leases (including those on the cash basis), assuming no new or renegotiated leases or option extensions, as determined under Topic 842 for such premises for the years ending December 31, were as follows (in thousands):


Year	December 31,
2025	$	84,726
2026		77,986
2027		67,710
2028		52,534
2029		39,579
Thereafter		130,289
Total	$	452,824