Leases

12 Months Ended

Dec. 31, 2024

11. Leases

As Lessor

The Company has approximately 1,300 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):


	Year Ended December 31,
	2024		2023		2022
Fixed lease revenue	$	282,492	$	269,648	$	258,472
Variable lease revenue		67,038		63,396		59,342
Total rental revenue	$	349,530	$	333,044	$	317,814

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 December 31, 2024, are summarized as follows (in thousands):



Year Ending December 31,	Minimum Rental Revenues (a)
2025	$	252,564
2026		243,817
2027		218,934
2028		187,739
2029		154,725
Thereafter		577,342
Total	$	1,635,121

(a)

Amount represents contractual lease maturities at December 31, 2024, including any extension options that management determined were reasonably certain of exercise.

During the years ended December 31, 2024, 2023 and 2022, no single tenant or property collectively comprised more than 10% of the Company’s 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 years to 98 years.


	Minimum Rental Payments
Year Ending December 31,	Operating Leases (a)			Finance Leases (a)
2025	$	5,338		$	1,319
2026		5,246			1,350
2027		4,450			1,350
2028		4,236			1,396
2029		3,700			1,414
Thereafter		12,267			155,319
		35,237			162,148
Interest		(7,317	)		(130,774	)
Total	$	27,920		$	31,374

(a)

Minimum rental payments include $7.3 million of interest related to operating leases and $130.8 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):


	Year Ended December 31,
	2024			2023			2022
Lease Cost
Finance lease cost:
Amortization of right-of-use assets	$	1,338		$	1,244		$	903
Interest on lease liabilities		2,061			1,239			410
Subtotal		3,399			2,483			1,313
Operating lease cost		5,265			5,291			5,338
Variable lease cost		276			228			80
Total lease cost	$	8,940		$	8,002		$	6,731

Cash Paid
Payments of operating lease obligations - operating activities	$	5,438		$	5,386		$	5,364
Payments of interest on finance lease obligations - operating activities		2,061			1,239			410
Payments of finance lease obligations - financing activities		2,437			100			—

	As of December 31,
	2024			2023
Other Information
Weighted-average remaining lease term - finance leases (years)		56.8			58.3
Weighted-average remaining lease term - operating leases (years)		8.7			9.7
Weighted-average discount rate - finance leases		6.5	%		6.5	%
Weighted-average discount rate - operating leases		5.1	%		5.1	%

During the year ended December 31, 2024, the Company:

•

acquired a master lease as part of the acquisition of the Bleecker Street Portfolio in September 2024, and recorded a right-of-use-asset – finance lease of $2.7 million and a lease liability – finance lease of $1.1 million as the lease term was for a major part of the economic life of the underlying asset.

During the year ended December 31, 2023, the Company:

•

modified its master lease at 565 Broadway within the Core Portfolio and extended the lease term for 43 years until December 31, 2121, for an additional payment of $4.0 million to be paid over the lease term. As a result, the transaction was accounted for as a lease modification which resulted in a change in lease classification per ASC 842 from Right-of-use-asset – operating lease to a right-of-use-asset – finance lease. The Company recorded an additional right-of-use asset – finance lease and corresponding lease liability-finance lease of $3.8 million.

•

acquired four ground leases as part of the Fund V acquisition of Cypress Creek in July 2023 (Note 2), and recorded a right-of-use-asset – finance lease of $25.3 million and a lease liability – finance lease of $22.1 million as the present value of the sum of the lease payments exceeded substantially all of the fair value of the underlying assets.