Leases

6 Months Ended

Jun. 30, 2025

11. Leases

As Lessor

The Company’s primary source of revenue is derived from lease agreements related to its portfolio of shopping centers and other retail properties. As of June 30, 2025, the Company was party to approximately 1,300 leases, which include both properties owned directly and those operated

under long-term ground leases. These lease agreements have contractual terms that extend through February 2, 2084, and many include tenant renewal options. Certain leases also provide tenants with early termination rights.

Lease terms generally range from one month to sixty years. In addition to fixed base rent, many leases include provisions for variable lease payments, such as reimbursements for operating expenses and rent based on a percentage of the tenant’s sales volume.

The following table presents the components of rental revenue, disaggregated into fixed and variable lease income (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Fixed lease revenue	$	78,871	$	69,366	$	163,074	$	138,023
Variable lease revenue		19,426		16,260		37,863		33,640
Total rental revenue	$	98,297	$	85,626	$	200,937	$	171,663

The following table summarizes the Company’s scheduled future minimum rental revenues under non-cancelable tenant leases with remaining terms greater than one year, as of June 30, 2025. These amounts assume no new or renegotiated leases or exercise of renewal options not deemed reasonably certain (in thousands):



Year Ending December 31,	Minimum Rental Revenues
2025 (Remainder)	$	139,061
2026		285,942
2027		265,003
2028		233,296
2029		195,453
Thereafter		727,877
Total	$	1,846,632

During the first quarter of 2025, the Company recognized $8.4 million as rental and termination income related to a lease termination at City Center, a Core Portfolio property, which is included in Other revenue on the Company’s Condensed Consolidated statements of operations.

During the three and six months ended June 30, 2025 and 2024, no single tenant or property collectively comprised more than 10% of the Company’s total revenues.

As Lessee

The Company leases certain properties that are owned by third parties, including ground leases for retail properties and leases for office space and equipment. These leases grant the Company the right to operate the underlying assets during the lease term. Lease terms generally range from five years to 98 years and may include renewal options that are evaluated for likelihood of exercise. The Company classifies these arrangements as either operating or finance leases in accordance with ASC Topic 842, Leases.


	Minimum Rental Payments
Year Ending December 31,	Operating Leases (a)			Finance Leases (a)
2025 (Remainder)	$	2,670		$	671
2026		5,637			1,350
2027		4,850			1,350
2028		4,646			1,396
2029		4,121			1,415
Thereafter		13,065			155,318
		34,989			161,500
Interest		(7,009	)		(129,749	)
Total	$	27,980		$	31,751

(a)

Minimum rental payments include $7.0 million of interest related to operating leases and $129.7 million related to finance leases. These amounts exclude lease renewal options that not reasonably certain to be exercised.

The following table summarizes additional lease cost information for the Company’s lessee arrangements (dollars in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Lease Cost
Finance lease cost:
Amortization of right-of-use assets	$	373	$	354	$	747	$	603
Interest on lease liabilities		513		512		1,025		1,034
Subtotal		886		866		1,772		1,637
Operating lease cost		1,409		1,303		2,715		2,635
Variable lease cost		105		69		194		144
Total lease cost	$	2,400	$	2,238	$	4,681	$	4,416

Cash Paid
Payments of operating lease obligations - operating activities	$	1,366	$	1,360	$	2,731	$	2,715
Payments of interest on finance lease obligations - operating activities		513		512		1,025		1,034
Payments of finance lease obligations - financing activities		132		47		378		89


	As of June 30,
	2025			2024
Other Information
Weighted-average remaining lease term - finance leases (years)		56.5			58.1
Weighted-average remaining lease term - operating leases (years)		8.3			9.4
Weighted-average discount rate - finance leases		6.5	%		6.5	%
Weighted-average discount rate - operating leases		5.1	%		5.1	%

During the first quarter of 2025, the Company entered into a new corporate office lease. The Company recognized a $2.1 million right-of-use asset and corresponding lease liability related to the operating lease. The lease term was determined based on the noncancelable period and renewal options that the Company is reasonably certain to exercise. The lease liability was measured using the Company’s incremental borrowing rate at lease commencement.