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Note 8 - Leases | 6 Months Ended
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Jun. 30, 2022
Notes to Financial Statements |
Lessee, Operating Leases [Text Block] | 8. Leases Lessor Leases The Company’s primary source of revenues is derived from lease agreements, which includes rental income and expense reimbursement. The Company’s lease income is comprised of minimum base rent, expense reimbursements, percentage rent, lease termination fee income, ancillary income, amortization of above-market and below-market rent adjustments and straight-line rent adjustments. The disaggregation of the Company’s lease income, which is included in Revenues from rental properties, net on the Company’s Condensed Consolidated Statements of Operations, as either fixed or variable lease income based on the criteria specified in ASC 842, for the three and six months ended June 30, 2022 and 2021, is as follows (in thousands):
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Lease income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed lease income (1) |  | $ | 336,370 |  |  | $ | 223,259 |  |  | $ | 668,368 |  |  | $ | 436,263 |
Variable lease income (2) |  |  | 81,514 |  |  |  | 55,683 |  |  |  | 164,961 |  |  |  | 115,995 |
Above-market and below-market leases amortization, net |  |  | 2,683 |  |  |  | 3,231 |  |  |  | 6,980 |  |  |  | 8,933 |
Adjustments for potentially uncollectible revenues and disputed amounts (3) |  |  | 2,706 |  |  |  | 3,559 |  |  |  | 5,618 |  |  |  | 3,412 |
Total lease income |  | $ | 423,273 |  |  | $ | 285,732 |  |  | $ | 845,927 |  |  | $ | 564,603 |
| (1) | Includes minimum base rents, expense reimbursements, ancillary income and straight-line rent adjustments.
| (2) | Includes minimum base rents, expense reimbursements, percentage rent, lease termination fee income and ancillary income.
| (3) | The amounts represent adjustments associated with potentially uncollectible revenues and disputed amounts primarily due to the COVID-19 pandemic.
Lessee Leases The Company currently leases real estate space under non-cancelable operating lease agreements for ground leases and administrative office leases. The Company’s operating leases have remaining lease terms ranging from one to 64 years, some of which include options to extend the terms for up to an additional 75 years. The weighted-average remaining non-cancelable lease term and weighted-average discount rates for the Company’s operating and finance leases as of June 30, 2022 were as follows:
|  | Operating Leases |  |  | Finance Leases |
Weighted-average remaining lease term (in years) |  |  | 25.5 |  |  |  | 1.5 |
Weighted-average discount rate |  |  | 6.63 | % |  |  | 4.44 | %
The components of the Company’s lease expense, which are included in interest expense, rent expense and general and administrative expense on the Company’s Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021, were as follows (in thousands):
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Lease cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Finance lease cost |  | $ | 250 |  |  | $ | - |  |  | $ | 576 |  |  | $ | - |
Operating lease cost |  |  | 3,268 |  |  |  | 2,795 |  |  |  | 6,251 |  |  |  | 5,624 |
Variable lease cost |  |  | 1,188 |  |  |  | 649 |  |  |  | 2,596 |  |  |  | 1,332 |
Total lease cost |  | $ | 4,706 |  |  | $ | 3,444 |  |  | $ | 9,423 |  |  | $ | 6,956 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
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