XML 31 R16.htm IDEA: XBRL DOCUMENT

Note 8 - Leases

6 Months Ended

Jun. 30, 2023

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, 2023 and 2022, is as follows (in thousands):

	Three Months Ended June 30,					Six Months Ended June 30,
	2023			2022		2023			2022
Lease income:
Fixed lease income (1)	$	349,323		$	336,370	$	697,661		$	668,368
Variable lease income (2)		86,258			81,514		176,329			164,961
Above-market and below-market leases amortization, net		7,013			2,683		10,002			6,980
Adjustments for potentially uncollectible revenues and disputed amounts (3)		(3,586	)		2,706		(6,646	)		5,618
Total lease income	$	439,008		$	423,273	$	877,346		$	845,927

(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.

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 less than one to 62.5 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, 2023 were as follows:

	Operating Leases			Finance Leases
Weighted-average remaining lease term (in years)		24.6			0.5
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, 2023 and 2022, were as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Lease cost:
Finance lease cost	$	316	$	250	$	635	$	576
Operating lease cost		3,697		3,268		7,398		6,251
Variable lease cost		706		1,188		1,267		2,596
Total lease cost	$	4,719	$	4,706	$	9,300	$	9,423