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Leases | 12 Months Ended
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Dec. 31, 2023
Leases |
Leases | Note 3 – Leases Tenant Leases The Company is primarily focused on the ownership, acquisition, development and management of retail properties leased to industry leading tenants. Substantially all of the Company’s tenants are subject to net lease agreements. A net lease typically requires the tenant to be responsible for minimum monthly rent and actual property operating expenses incurred, including property taxes, insurance and maintenance. In addition, the Company’s tenants are typically subject to future rent increases based on fixed amounts or increases in the consumer price index and certain leases provide for additional rent calculated as a percentage of the tenants’ gross sales above a specified level. Certain of the Company’s properties are subject to leases under which it retains responsibility for specific costs and expenses of the property. The Company’s leases typically provide the tenant with one or more multi-year renewal options to extend their leases, subject to generally the same terms and conditions, including rent increases, consistent with the initial lease term. The Company attempts to maximize the amount it expects to derive from the underlying real estate property following the end of the lease, to the extent it is not extended. The Company maintains a proactive leasing program that, combined with the quality and locations of its properties, has made its properties attractive to tenants. The Company intends to continue to hold its properties for long-term investment and, accordingly, places a strong emphasis on the quality of construction and an on-going program of regular and preventative maintenance. The Company has elected the practical expedient in ASC 842 on not separating non-lease components from associated lease components. The lease and non-lease components combined as a result of this election largely include tenant rentals and maintenance charges, respectively. The Company applies the accounting requirements of ASC 842 to the combined component. The following table includes information regarding contractual lease payments for the Company’s operating leases for which it is the lessor, for the years ended December 31, 2023, 2022 and 2021 (presented in thousands).
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​ | ​ | ​ | ​ | For the Year Ended December 31,
​ | ​ | ​ | ​ | 2023 | ​ | 2022 | ​ | 2021 |
Total lease payments | ​ | ​ | ​ | $ | 558,200 | ​ | $ | 450,369 | ​ | $ | 352,797 | ​
Less: Operating cost reimbursements and percentage rents | ​ | ​ | ​ |  | 60,694 | ​ |  | 47,962 | ​ |  | 36,929 | ​
Total non-variable lease payments | ​ | ​ | ​ | $ | 497,506 | ​ | $ | 402,407 | ​ | $ | 315,868 | ​
​ At December 31, 2023, future non-variable lease payments to be received from the Company’s operating leases for the next five years and thereafter are as follows (presented in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Year Ending December 31, |  | ​ | 2024 |  | 2025 |  | 2026 |  | 2027 |  | 2028 |  | Thereafter |  | Total
Future non-variable lease payments | ​ | ​ | $ | 558,548 |  | $ | 553,567 |  | $ | 534,151 |  | $ | 507,623 |  | $ | 470,740 | ​ | $ | 2,341,234 |  | $ | 4,965,863
​ Deferred Revenue As of December 31, 2023 and 2022, there was $21.9 million and $18.1 million, respectively, in deferred revenues resulting from rents paid in advance. Deferred revenues are recognized within accounts payable, accrued expenses, and other liabilities on the Consolidated Balance Sheets as of these dates. Land Lease Obligations The Company is the lessee under land lease agreements for certain of its properties. ASC 842 requires a lessee to recognize right of use assets and lease obligation liabilities that arise from leases, whether qualifying as operating or finance. As of December 31, 2023 and 2022, the Company had $60.2 million and $60.9 million, respectively, of right of use assets, net, recognized within other assets in the Consolidated Balance Sheets, while the corresponding lease obligations, net, of $23.0 million and $23.6 million, respectively, were recognized within accounts payable, accrued expenses, and other liabilities on the Consolidated Balance Sheets as of these dates. The Company’s land leases do not include any variable lease payments. These leases typically provide multi-year renewal options to extend their term as lessee at the Company’s option. Option periods are included in the calculation of the lease obligation liability only when options are reasonably certain to be exercised. Certain of the Company’s land leases qualify as finance leases as a result of purchase options that are reasonably certain of being exercised or automatic transfer of title to the Company at the end of the lease term. Amortization of right of use assets for operating land leases is classified as land lease expense and was $1.7 million, $1.6 million, and $1.6 million for the years ending December 31, 2023, 2022 and 2021, respectively. There was no amortization of right of use assets for finance land leases, as the underlying leased asset (land) has an infinite life. Interest expense on finance land leases was $0.3 million, $0.3 million and $0.2 million during the years ended December 31, 2023, 2022 and 2021. In calculating its lease obligations under ground leases, the Company uses discount rates estimated to be equal to what it would have to pay to borrow on a collateralized basis over a similar term, for an amount equal to the lease payments, in a similar economic environment. The following tables include information on the Company’s land leases for which it is the lessee, for the years ending December 31, 2023, 2022 and 2021 (presented in thousands).
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended
​ |  | December 31, 2023 |  |  | December 31, 2022 |  |  | December 31, 2021 |
Operating leases: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating cash outflows | ​ | $ | 1,197 | ​ | ​ | $ | 1,197 | ​ | ​ | $ | 1,112 | ​
Weighted-average remaining lease term - operating leases (years) | ​ | ​ | 33.2 | ​ | ​ | ​ | 33.5 | ​ | ​ | ​ | 33.8 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Finance leases: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating cash outflows | ​ | $ | 252 | ​ | ​ | $ | 255 | ​ | ​ | $ | 215 | ​
Financing cash outflows | ​ | $ | 84 | ​ | ​ | $ | 81 | ​ | ​ | $ | 93 | ​
Weighted-average remaining lease term - finance leases (years) | ​ | ​ | 0.8 | ​ | ​ | ​ | 1.8 | ​ | ​ | ​ | 2.8 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Supplemental Disclosure: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Right-of-use assets obtained in exchange for new lease liabilities, including value assigned to above market lease terms | ​ | $ | — | ​ | ​ | $ | 1,816 | ​ | ​ | $ | 6,302 | ​
Right-of-use assets net change | ​ | $ | — | ​ | ​ | $ | 1,816 | ​ | ​ | $ | 6,302 | ​
​ The following is a maturity analysis of lease liabilities for operating land leases as of December 31, 2023 for the following five years. (presented in thousands)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Year Ending December 31, |  | ​ | 2024 |  | 2025 |  | 2026 |  | 2027 |  | 2028 |  | Thereafter |  | Total
Lease payments | ​ | ​ | $ | 1,197 |  | $ | 1,197 |  | $ | 1,195 |  | $ | 1,042 |  | $ | 1,013 | ​ | $ | 27,796 |  | $ | 33,440
Imputed interest | ​ | ​ |  | (690) | ​ |  | (669) | ​ |  | (647) | ​ |  | (627) | ​ |  | (609) | ​ |  | (13,254) | ​ |  | (16,496)
Total lease liabilities | ​ | ​ | $ | 507 |  | $ | 528 |  | $ | 548 |  | $ | 415 |  | $ | 404 | ​ | $ | 14,542 |  | $ | 16,944
​ The weighted-average discount rate used in computing operating and finance lease obligations approximated 4% at December 31, 2023, 2022 and 2021. ​ The following is a maturity analysis of lease liabilities for finance land leases as of December 31, 2023 for the following five years. (presented in thousands)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Year Ending December 31, |  | ​ | 2024 |  | 2025 |  | 2026 |  | 2027 |  | 2028 |  | Thereafter |  | Total
Lease payments | ​ | ​ | $ | 6,252 |  | $ | — |  | $ | — |  | $ | — | ​ | $ | — | ​ | $ | — |  | $ | 6,252
Imputed interest | ​ | ​ |  | (207) | ​ |  | — | ​ |  | — | ​ |  | — | ​ | ​ | — | ​ | ​ | — | ​ |  | (207)
Total lease liabilities | ​ | ​ | $ | 6,045 |  | $ | — |  | $ | — |  | $ | — |  | $ | — | ​ | $ | — |  | $ | 6,045
​

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