Leases

3 Months Ended

Mar. 31, 2019

Leases:

Lessor Leases:

The Company leases its Centers under agreements that are classified as operating leases. These leases generally include minimum rents, percentage rents and recoveries of real estate taxes, insurance and other shopping center operating expenses. Minimum rental revenues are recognized on a straight-line basis over the terms of the related leases. Percentage rents are recognized and accrued when tenants' specified sales targets have been met. Estimated recoveries from certain tenants for their pro rata share of real estate taxes, insurance and other shopping center operating expenses are recognized as revenues in the period the applicable expenses are incurred. Other tenants pay a fixed rate and these tenant recoveries are recognized as revenues on a straight-line basis over the term of the related leases.

The following table summarizes the components of leasing revenue for the three months ended March 31, 2019:



Leasing revenue - fixed payments	$	164,061
Leasing revenue - variable payments	46,947
Leasing revenue	$	211,008

The following table summarizes the minimum rental payments to the Company:



Year ending March 31,
2020	$	502,144
2021	427,470
2022	369,955
2023	319,094
2024	273,412
Thereafter	769,564
	$	2,661,639

Lessee Leases:

The Company has certain properties that are subject to non-cancelable operating leases. The leases expire at various times through 2098, subject in some cases to options to extend the terms of the lease. Certain leases provide for contingent rent payments based on a percentage of base rental income, as defined in the lease. In addition, the Company has three finance leases that expire at various times through 2022.

The following table summarizes the lease costs for the three months ended March 31, 2019:



Operating lease costs	$	4,347
Finance lease costs:
Amortization of ROU assets	919
Interest on lease liabilities	154
Total lease costs	$	5,420

Future minimum rental payments required under the leases are as follows:



	March 31, 2019						December 31, 2018
Year ending	Operating Leases			Finance Leases			Operating Leases		Finance Leases
2019	$	12,635		$	1,699		$	16,627	$	2,106
2020	17,144			2,106			17,183		2,106
2021	16,992			10,440			17,124		10,440
2022	16,855			2,418			17,450		2,418
2023	11,043			—			11,390		—
Thereafter	140,403			—			140,562		—
Total undiscounted rental payments	215,072			16,663			$	220,336	$	17,070
Less imputed interest	(107,957		)	(1,673		)
Total lease liabilities	$	107,115		$	14,990

The Company's weighted average remaining lease term for its operating and finance leases at March 31, 2019 was 30.8 years and 2.4 years, respectively. The Company's weighted average incremental borrowing rate of its operating and finance leases at March 31, 2019 was 7.7% and 4.2%, respectively.

Leases