XML 23 R17.htm IDEA: XBRL DOCUMENT
v3.19.3

Leases | 9 Months Ended
--- | ---
Sep. 30, 2019
Leases [Abstract] |
Lessor, Operating Leases |
7. | Leases
Lessor Accounting The Company's Lease income is comprised of both fixed and variable income, as follows: Fixed and in-substance fixed lease income includes stated amounts per the lease contract, which are primarily related to base rent, and in some cases stated amounts for CAM, real estate taxes, and insurance. Income for these amounts is recognized on a straight- line basis. Variable lease income includes the following two main items in the lease contracts: (i) Recoveries from tenants represents amounts which tenants are contractually obligated to reimburse the Company for the tenants’ portion of actual Recoverable Costs incurred. Generally the Company’s leases provide for the tenants to reimburse the Company based on the tenants’ share of the actual costs incurred in proportion to the tenants’ share of leased space in the property. (ii) Percentage rent represents amounts billable to tenants based on the tenants' actual sales volume in excess of levels specified in the lease contract. The following table provides a disaggregation of lease income recognized under ASC Topic 842, Leases, as either fixed or variable lease income based on the criteria specified in ASC 842:
(in thousands) |  | Three months ended September 30, 2019 |  |  |  | Nine months ended September 30, 2019 |
Operating lease income |  |  |  |  |  |  |  |  |
Fixed and in-substance fixed lease income |  | $ | 203,407 |  |  |  |  | 602,698 |
Variable lease income |  |  | 59,872 |  |  |  |  | 185,317 |
Other lease related income, net |  |  |  |  |  |  |  |  |
Above/below market rent amortization |  |  | 11,086 |  |  |  |  | 31,334 |
Uncollectible amounts in lease income |  |  | (2,222 | ) |  |  |  | (3,667 | )
Total lease income |  | $ | 272,143 |  |  |  |  | 815,682 |
Future minimum rents under non-cancelable operating leases, excluding variable lease payments, are as follows:
(in thousands) |  | Future Minimum Rents as of |
Year Ending December 31, |  | September 30, 2019 |  |  |  | December 31, 2018 |
2019 |  | $ | 198,877 |  | (1) |  |  | 761,151 |
2020 |  |  | 765,960 |  |  |  |  | 693,848 |
2021 |  |  | 685,457 |  |  |  |  | 608,587 |
2022 |  |  | 593,471 |  |  |  |  | 516,369 |
2023 |  |  | 489,035 |  |  |  |  | 414,424 |
Thereafter |  |  | 1,925,998 |  |  |  |  | 1,691,203 |
Total |  | $ | 4,658,798 |  |  |  |  | 4,685,582 |
(1) The future minimum rental income as of September 30, 2019 includes amounts due between October 1, 2019 and December 31, 2019. Lessee Accounting The Company has shopping centers that are subject to non-cancelable, long-term ground leases where a third party owns the underlying land and has leased the land to the Company to construct and/or operate a shopping center. The Company has 22 properties within its consolidated real estate portfolio that are either partially or completely on land subject to ground leases with third parties. Accordingly, the Company owns only a long-term leasehold or similar interest in these properties. These ground leases expire through the year 2101, and in most cases, provide for renewal options. In addition, the Company has non-cancelable operating leases pertaining to office space from which it conducts its business. Office leases expire through the year 2029, and in many cases, provide for renewal options. The ground and office lease expense is recognized on a straight-line basis over the term of the leases, including management's estimate of expected option renewal periods. Operating lease expense under the Company's ground and office leases was as follows, including straight-line rent expense and variable lease expenses such as CPI increases, percentage rent and reimbursements of landlord costs:
(in thousands) |  | Three months ended September 30, 2019 |  |  | Nine months ended September 30, 2019 |
Operating lease expense |  |  |  |  |  |  |  |
Ground leases |  | $ | 3,514 |  |  |  | 10,714 |
Office leases |  |  | 1,066 |  |  |  | 3,173 |
Total fixed operating lease expense |  |  | 4,580 |  |  |  | 13,887 |
Variable lease expense |  |  |  |  |  |  |  |
Ground leases |  |  | 364 |  |  |  | 1,236 |
Office leases |  |  | 137 |  |  |  | 410 |
Total variable lease expense |  |  | 501 |  |  |  | 1,646 |
Total lease expense |  | $ | 5,081 |  |  |  | 15,533 |
Cash paid for amounts included in the measurement of operating lease liabilities |  |  |  |  |  |  |  |
Operating cash flows for operating leases |  | $ | 3,684 |  |  |  | 11,096 |
Operating lease expense under the Company's ground and office leases was $5.1 million and $5.0 million during the three months ended September 30, 2019 and 2018, respectively, and $15.5 million and $14.2 million during the nine months ended September 30, 2019 and 2018, respectively, which includes fixed and variable rent expense. The following table summarizes the undiscounted future cash flows by year attributable to the operating lease liabilities under ground and office leases as of September 30, 2019, and provides a reconciliation to the Lease liability included in the accompanying Consolidated Balance Sheets:
(in thousands) |  | Lease liabilities |
Year Ending December 31, |  | Ground Leases |  |  | Office Leases |  |  | Total |
2019 (1) |  | $ | 2,668 |  |  |  | 1,281 |  |  |  | 3,949 |
2020 |  |  | 10,707 |  |  |  | 5,079 |  |  |  | 15,786 |
2021 |  |  | 10,674 |  |  |  | 3,969 |  |  |  | 14,643 |
2022 |  |  | 10,698 |  |  |  | 3,002 |  |  |  | 13,700 |
2023 |  |  | 10,914 |  |  |  | 2,301 |  |  |  | 13,215 |
Thereafter |  |  | 564,080 |  |  |  | 6,344 |  |  |  | 570,424 |
Total undiscounted lease liabilities |  | $ | 609,741 |  |  |  | 21,976 |  |  |  | 631,717 |
Present value discount |  |  | (405,850 | ) |  |  | (2,286 | ) |  |  | (408,136 | )
Lease liabilities |  | $ | 203,891 |  |  |  | 19,690 |  |  |  | 223,581 |
Weighted average discount rate |  | 5.2% |  |  | 3.9% |  |  |  |  |
Weighted average remaining term |  | 49.4 years |  |  | 5.7 years |  |  |  |  |
(1) The undiscounted lease liability maturities shown as of September 30, 2019, includes amounts due between October 1, 2019 and December 31, 2019. The following table summarizes the future obligations under non-cancelable operating leases, excluding unexercised renewal options, as of December 31, 2018:
(in thousands) |  | Future Lease Obligations |
Year Ending December 31, |  | Ground Leases |  |  |  | Office Leases |  |  | Total |
2019 |  | $ | 10,672 |  |  |  |  | 4,405 |  |  |  | 15,077 |
2020 |  |  | 10,439 |  |  |  |  | 4,294 |  |  |  | 14,733 |
2021 |  |  | 10,344 |  |  |  |  | 3,549 |  |  |  | 13,893 |
2022 |  |  | 10,258 |  |  |  |  | 2,893 |  |  |  | 13,151 |
2023 |  |  | 10,369 |  |  |  |  | 2,189 |  |  |  | 12,558 |
Thereafter |  |  | 461,762 |  |  |  |  | 5,944 |  |  |  | 467,706 |
Total |  | $ | 513,844 |  |  |  |  | 23,274 |  |  |  | 537,118 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 40 -Subparagraph Note 1 -URI http://asc.fasb.org/extlink&oid=82846649&loc=d3e38371-112697 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 40 -Subparagraph Note 3 -URI http://asc.fasb.org/extlink&oid=82846649&loc=d3e38371-112697 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=77888252 + Details
Name: | us-gaap_OperatingLeasesOfLessorDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration