Leases

9 Months Ended

Sep. 30, 2025


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 lease contracts, 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 represent 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 Topic 842:


(in thousands)	Three months ended September 30,					Nine months ended September 30,
	2025		2024			2025			2024
Operating lease income
Fixed and in-substance fixed lease income	$	278,670		258,185		$	817,014			771,800
Variable lease income		92,904		85,617			285,044			263,991
Other lease related income, net:
Above/below market rent and tenant rent inducement amortization, net		5,784		5,726			18,265			18,990
Uncollectible straight-line rent (1)		350		(129	)		(472	)		(1,340	)
Uncollectible lease income		53		(342	)		(1,906	)		(3,433	)
Total lease income	$	377,761		349,057		$	1,117,945			1,050,008

(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, 2025		December 31, 2024
Tenant receivables	$	24,088		35,306
Straight-line rent receivables		174,572		157,507
Other receivables (1)		56,883		62,682
Total tenant and other receivables	$	255,543		255,495

(1)

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