Leases

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2019 and 2018:



	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2019		2018		2019		2018
Leasing revenue - fixed payments	$	158,777	$	163,660	$	322,838	$	329,745
Leasing revenue - variable payments	52,245		53,354		99,192		105,381
	$	211,022	$	217,014	$	422,030	$	435,126

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



Twelve months ending June 30,
2020	$	494,207
2021	418,924
2022	365,214
2023	314,702
2024	263,689
Thereafter	779,246
	$	2,635,982

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 and six months ended June 30, 2019:



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Operating lease costs	$	4,862	$	9,209
Finance lease costs:
Amortization of ROU assets	467		932
Interest on lease liabilities	154		308
	$	5,483	$	10,449

The following table summarizes the future minimum rental payments required under the leases:



	June 30, 2019						December 31, 2018
Year ending	Operating Leases			Finance Leases			Operating Leases		Finance Leases
2019	$	8,357		$	1,699		$	16,627	$	2,106
2020	17,133			2,106			17,183		2,106
2021	16,988			10,440			17,124		10,440
2022	16,851			2,418			17,450		2,418
2023	11,039			—			11,390		—
Thereafter	140,698			—			140,562		—
Total undiscounted rental payments	211,066			16,663			$	220,336	$	17,070
Less imputed interest	(106,271		)	(1,673		)
Total lease liabilities	$	104,795		$	14,990

The Company's weighted average remaining lease term of its operating and finance leases at June 30, 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 June 30, 2019 was 7.7% and 4.2%, respectively.

Leases