Leases

9 Months Ended

Sep. 30, 2024


7.	Leases

Substantially all of the Company's leases are classified as operating leases. The Company's Lease income is comprised of both fixed and variable income. Fixed and in-substance fixed lease income includes stated amounts per the lease contract, which are primarily related to base rent, and in some cases stated amounts for common area maintenance ("CAM"), real estate taxes, and insurance (collectively, "Recoverable Costs"). Income for these amounts is recognized on a straight-line basis.

Variable lease income includes the following two main items in the lease contracts:

•

Recoveries from tenants represents the tenants' contractual obligations to reimburse the Company for their portion of Recoverable Costs incurred. Generally, the Company's leases provide for the tenants to reimburse the Company based on the tenants' share of the actual costs incurred in proportion to the tenants' share of leased space in the property.

•

Percentage rent represents amounts billable to tenants based on the tenants' actual sales volume in excess of levels specified in the lease contract.

The following table provides a disaggregation of lease income recognized as either fixed or variable lease income based on the criteria specified in ASC Topic 842:


(in thousands)	Three months ended September 30,						Nine months ended September 30,
	2024			2023			2024			2023
Operating lease income
Fixed and in-substance fixed lease income	$	258,185			235,489		$	771,800			675,320
Variable lease income		85,617			77,901			263,991			233,019
Other lease related income, net:
Above/below market rent and tenant rent inducement amortization, net		5,726			8,118			18,990			22,734
Uncollectible straight-line rent (1)		(129	)		49			(1,340	)		2,149
Uncollectible amounts billable in lease (loss) income		(342	)		(636	)		(3,433	)		958
Total lease income	$	349,057			320,921		$	1,050,008			934,180

(1)

The amounts include straight-line rent adjustments associated with converting between cash basis and accrual basis of accounting for certain leases.

The following table represents the components of Tenant and other receivables, net of amounts considered uncollectible, in the accompanying Consolidated Balance Sheets:


(in thousands)	September 30, 2024		December 31, 2023
Tenant receivables	$	26,887		34,814
Straight-line rent receivables		152,319		138,590
Notes receivable		32,038		2,109
Other receivables(1)		28,870		30,649
Total tenant and other receivables	$	240,114		206,162

(1)

Other receivables include construction receivables, insurance receivables, and amounts due from real estate partnerships for Management, transaction, and other fee income.

During the nine months ended September 30, 2024 the Company issued a note receivable in the amount of $29.8 million at an interest rate of 6.9% maturing in January 2027, secured by a grocery-anchored shopping center.