Leases

6 Months Ended

Jun. 30, 2020

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. For leasing revenues in which collectability is not considered probable, lease income is recognized on a cash basis and all previously recognized tenant accounts receivables, including straight-line rent, are fully reserved in the period in which the lease income is determined not to be probable of collection.

The following table summarizes the components of leasing revenue for the three and six months ended June 30, 2020 and 2019:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2020		2019		2020		2019
Leasing revenue—fixed payments	$	150,292	$	160,784	$	306,339	$	326,671
Leasing revenue—variable payments	46,239		52,245		101,826		99,192
Provision for doubtful accounts	(27,777)		(2,007)		(28,690)		(3,833)
	$	168,754	$	211,022	$	379,475	$	422,030

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


Twelve months ending June 30,
2021	$	436,611
2022	382,120
2023	327,661
2024	274,629
2025	216,448
Thereafter	597,091
	$	2,234,560

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 five finance leases that expire at various times through 2024.

The following table summarizes the lease costs:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2020		2019		2020		2019
Operating lease costs	$	3,701	$	4,862	$	7,639	$	9,209
Finance lease costs:
Amortization of ROU assets	476		467		951		932
Interest on lease liabilities	142		154		284		308
	$	4,319	$	5,483	$	8,874	$	10,449

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


	June 30, 2020									December 31, 2019
Year ending December 31,	Operating Leases			Finance Leases			Operating Leases			Finance Leases
2020	$	8,860		$	2,043		$	17,149		$	2,106
2021	17,004			10,784			17,004			10,441
2022	16,867			2,762			16,867			2,418
2023	11,055			344			11,055			—
2024	9,068			3,085			9,068			—
Thereafter	131,347			—			131,347			—
Total undiscounted rental payments	194,201			19,018			202,490			14,965
Less imputed interest	(101,597)			(1,397)			(102,085)			(1,169)
Total lease liabilities	$	92,604		$	17,621		$	100,405		$	13,796
Weighted average remaining term	31.0 years			1.3 years			31.0 years			1.6 years
Weighted average incremental borrowing rate	7.7		%	3.2		%	7.7		%	4.2		%

Leases