Leases

9 Months Ended

Sep. 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 nine months ended September 30, 2019 and 2018:


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2019		2018		2019		2018
Leasing revenue - fixed payments	$	159,356	$	164,351	$	482,194	$	494,096
Leasing revenue - variable payments	54,904		59,900		154,096		165,281
	$	214,260	$	224,251	$	636,290	$	659,377

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


Twelve months ending September 30,
2020	$	490,897
2021	414,722
2022	363,264
2023	313,166
2024	255,316
Thereafter	753,888
	$	2,591,253

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 four finance leases that expire at various times through 2022.

The following table summarizes the lease costs for the three and nine months ended September 30, 2019:


	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Operating lease costs	$	3,466	$	12,675
Finance lease costs:
Amortization of ROU assets	475		1,407
Interest on lease liabilities	145		453
	$	4,086	$	14,535

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


	September 30, 2019						December 31, 2018
Year ending	Operating Leases		Finance Leases		Operating Leases		Finance Leases
2019	$	4,521	$	505	$	16,627	$	2,106
2020	17,149		2,106		17,183		2,106
2021	17,004		10,440		17,124		10,440
2022	16,867		2,418		17,450		2,418
2023	11,055		—		11,390		—
Thereafter	140,415		—		140,562		—
Total undiscounted rental payments	207,011		15,469		$	220,336	$	17,070
Less imputed interest	(104,124)		(1,673)
Total lease liabilities	$	102,887	$	13,796

The Company's weighted average remaining lease term of its operating and finance leases at September 30, 2019 was 31.0 years and 1.9 years, respectively. The Company's weighted average incremental borrowing rate of its operating and finance leases at September 30, 2019 was 7.7% and 4.2%, respectively.

Leases