Leases

6 Months Ended

Jun. 30, 2024

11. Leases

As Lessor

The Company has approximately 1,200 leases in the leasing of shopping centers and other retail properties that are either owned or, with respect to certain shopping centers, leased under long-term ground leases (see below) that expire at various dates through December 31, 2121, with renewal options. Certain leases may allow for the tenants to terminate the leases before the expiration of the lease term. Space in the properties is leased to tenants pursuant to agreements that generally provide for terms ranging from one month to sixty years and for additional rents based on certain operating expenses as well as tenants’ sales volumes.

The components of rental revenue are as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Fixed lease revenue	$	69,366	$	73,102	$	138,023	$	137,984
Variable lease revenue		16,260		15,039		33,640		30,894
Total rental revenue	$	85,626	$	88,141	$	171,663	$	168,878

The scheduled future minimum rental revenues from rental properties under the terms of non-cancelable tenant leases greater than one year (assuming no new or renegotiated leases or option extensions for such premises) as of June 30, 2024, are summarized as follows (in thousands):



Year Ending December 31,	Minimum Rental Revenues (a)
2024 (Remainder)	$	122,128
2025		247,728
2026		225,695
2027		201,243
2028		171,544
Thereafter		670,820
Total	$	1,639,158

(a)

Amount represents contractual lease maturities as of June 30, 2024 including any extension options that management determined were reasonably certain of exercise.

During the three and six months ended June 30, 2024 and 2023, no single tenant or property collectively comprised more than 10% of the Company’s consolidated total revenues.

As Lessee

The Company has properties in its portfolio that are currently owned by third parties. We also lease real estate for equipment and office space. We lease these properties pursuant to ground leases that provide us the right to operate each such property, and generally provide terms ranging from five months to 98 years.


	Minimum Rental Payments
Year Ending December 31,	Operating Leases (a)			Finance Leases (a)
2024 (Remainder)	$	2,723		$	2,046
2025		5,402			2,536
2026		5,247			1,264
2027		4,450			1,264
2028		4,236			1,310
Thereafter		15,967			154,017
		38,025			162,437
Interest		(8,061	)		(129,788	)
Total	$	29,964		$	32,649

(a)

Minimum rental payments include $8.1 million of interest related to operating leases and $129.8 million related to finance leases and exclude options or renewals not reasonably certain of exercise.

Additional disclosures regarding the Company’s leases as lessee are as follows (dollars in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024			2023
Lease Cost
Finance lease cost:
Amortization of right-of-use assets	$	354		225	$	603		$	451
Interest on lease liabilities		512		108		1,034			214
Subtotal		866		333		1,637			665
Operating lease cost		1,303		1,328		2,635			2,664
Variable lease cost		69		73		144			144
Total lease cost	$	2,238	$	1,734	$	4,416		$	3,473

Other Information
Weighted-average remaining lease term - finance leases (years)						58.1			31.6
Weighted-average remaining lease term - operating leases (years)						9.4			13.3
Weighted-average discount rate - finance leases						6.5	%		6.3	%
Weighted-average discount rate - operating leases						5.1	%		5.1	%