Leases

6 Months Ended

Jun. 30, 2019

The Company periodically enters into agreements in which it is the lessee, including ground leases for neighborhood and community shopping centers that it operates and office leases for administrative space. The agreements range in term from less than one year to 50 or more years, with certain agreements containing extension options for up to an additional 100 years. As of June 30, 2019 the Company is not including any options to extend or any termination options in its ROU asset, as the exercise of such options is not reasonably certain. Upon lease execution, the Company measures a liability for the present value of future lease payments over the noncancellable period of the lease. Certain agreements require the Company to pay its portion of reimbursable expenses such as common area expenses, utilities, insurance and real estate taxes. These payments are not included in the calculation of the lease liability and are presented as variable lease costs. The following table presents additional information pertaining to the Company’s operating leases:



	Three Months Ended June 30, 2019			Six Months Ended June 30, 2019
Supplemental Statements of Operations Information	Three Months Ended June 30, 2019			Six Months Ended June 30, 2019
Operating lease costs	$	1,705		$	3,416
Short-term lease costs	10			20
Variable lease costs	114			256
Total lease costs	$	1,829		$	3,692

	Six Months Ended June 30, 2019
Supplemental Statements of Cash Flows Information	Six Months Ended June 30, 2019
Operating cash outflows from operating leases	$	3,504
ROU assets obtained in exchange for operating lease liabilities	$	44,354

Operating Lease Liabilities	As of June 30, 2019
Future minimum operating lease payments:
2019 (remaining six months)	$	3,449
2020	6,916
2021	6,942
2022	6,999
2023	5,612
Thereafter	30,806
Total future minimum operating lease payments	60,724
Less: imputed interest	(13,893		)
Operating lease liabilities	$	46,831

Supplemental Balance Sheets Information	As of June 30, 2019
Operating lease liabilities⁽¹⁾⁽²⁾	$	46,831
ROU assets⁽¹⁾⁽³⁾	$	41,803


⁽¹⁾	As of June 30, 2019, the weighted average remaining lease term was 11.2 years and the weighted average discount rate was 4.30%.


⁽²⁾	These amounts are included in Accounts payable, accrued expenses and other liabilities on the Company’s unaudited Condensed Consolidated Balance Sheets.


⁽³⁾	These amounts are included in Other assets on the Company’s unaudited Condensed Consolidated Balance Sheets.

As of June 30, 2019, there were no material leases that have been executed but not yet commenced.

Minimum Annual Rental Commitments As Presented Under ASC 840

Minimum annual rental commitments as of and in-place at December 31, 2018 for the Company's ground and office leases during the next five years and thereafter are as follows:



Year ending December 31,
2019	$	6,929
2020	6,948
2021	7,157
2022	7,233
2023	5,827
Thereafter	43,876
Total minimum annual rental commitments	$	77,970