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Lease Information
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Lease Information Lease Information 
 
Rental Income
  
    The Company receives rental income from the leasing of retail and office space. The leases generally provide for certain increases in base rent, reimbursement for certain operating expenses, and may require tenants to pay contingent rent to the extent their sales exceed a defined threshold. Certain tenants have the option in the lease agreement to extend their lease upon the expiration of their contractual term. Variable lease payments are based upon tenant sales information and are recognized once a tenant's sales volume exceeds a defined threshold. Variable lease payments for reimbursement of operating expenses are based upon the operating expense activity for the period.
    
    From a lessor perspective, the new accounting guidance adopted in 2019 remained mostly similar to legacy GAAP as the Company elected the practical expedient to not separate non-lease components from lease components. This election resulted in a change on the Company's consolidated statements of operations as the Company no longer presents minimum rents
and tenant reimbursements as separate amounts because the Company now accounts for these amounts as a single combined lease component, rental income, on the basis of the lease component being the predominant component of the contract. As such, non-lease components, including common area maintenance reimbursements that are of a fixed nature are recognized on a straight-line basis over the term of the lease. Further, bad debt, which has previously been recorded in property operating expenses, has now been classified as a contra-revenue account in rental income in the Company’s consolidated statements of operations and comprehensive income for the years ended December 31, 2020 and 2019. 

    The Company recognized the following lease rental income for the years ended December 31, 2020 and 2019, respectively:

($ in thousands)
Year Ended December 31,
20202019
Fixed Contractual Lease Payments - Operating Leases$218,004 $244,666 
Variable Lease Payments - Operating Leases52,128 61,368 
Bad Debt Reserve(13,259)(3,620)
Straight-Line Rent Adjustment1,155 3,362 
Straight-Line Rent Reserve for Uncollectibility(4,177)(1,153)
Amortization of In-Place Lease Liabilities, net3,819 3,776 
Total$257,670 $308,399 


The weighted average remaining term of the lease agreements is approximately 4.5 years.  During the years ended December 31, 2020, 2019, and 2018, the Company earned overage rent of $0.2 million, $1.3 million, and $1.2 million, respectively. 
 
As of December 31, 2020, future minimum rentals to be received under non-cancelable operating leases for each of the next five years and thereafter, excluding variable lease payments, are as follows: 
 
($ in thousands)
2021$217,118 
2022196,856 
2023165,849 
2024137,803 
2025111,157 
Thereafter365,042 
Total$1,193,825 

Commitments under Ground Leases
  
As of December 31, 2020, we are obligated under nine ground leases for approximately 47 acres of land. Most of these ground leases require fixed annual rent payments.  The expiration dates of the remaining initial terms of these ground leases range from 2023 to 2092 with a weighted-average remaining term of 52.2 years.  Certain of these leases have five- to ten-year extension options ranging in total from 20 to 25 years.

    Upon adoption of the Leases standard, the Company did not recognize value during the option period for the right-of-use assets and lease liabilities as it was not probable the extension options will be exercised. Upon adoption, the Company recorded a right of use asset of $27.0 million and corresponding liability of $27.3 million. The right of use asset is included in prepaid and other assets and the lease liability is included in deferred revenue and other liabilities. This value was determined utilizing an estimate of our incremental borrowing rate that was specific to each lease based upon the term and underlying asset. These rates ranged from 3.93% to 6.33% with a weighted-average incremental borrowing rate of 5.86%.
Ground lease expense incurred by the Company on these operating leases for the years ended December 31, 2020, 2019, and 2018 was $1.9 million, $1.8 million, and $1.7 million, respectively. The Company made payments of $1.8 million and $1.7 million for the years ended December 31, 2020 and 2019, respectively, which were included in operating cash flows.
 
Future minimum lease payments due under ground leases for the next five years ending December 31 and thereafter are as follows: 
 
($ in thousands)
2021$1,789 
20221,815 
20231,636 
20241,600 
20251,582 
Thereafter68,971 
Total$77,393 
Lease Information Lease Information 
 
Rental Income
  
    The Company receives rental income from the leasing of retail and office space. The leases generally provide for certain increases in base rent, reimbursement for certain operating expenses, and may require tenants to pay contingent rent to the extent their sales exceed a defined threshold. Certain tenants have the option in the lease agreement to extend their lease upon the expiration of their contractual term. Variable lease payments are based upon tenant sales information and are recognized once a tenant's sales volume exceeds a defined threshold. Variable lease payments for reimbursement of operating expenses are based upon the operating expense activity for the period.
    
    From a lessor perspective, the new accounting guidance adopted in 2019 remained mostly similar to legacy GAAP as the Company elected the practical expedient to not separate non-lease components from lease components. This election resulted in a change on the Company's consolidated statements of operations as the Company no longer presents minimum rents
and tenant reimbursements as separate amounts because the Company now accounts for these amounts as a single combined lease component, rental income, on the basis of the lease component being the predominant component of the contract. As such, non-lease components, including common area maintenance reimbursements that are of a fixed nature are recognized on a straight-line basis over the term of the lease. Further, bad debt, which has previously been recorded in property operating expenses, has now been classified as a contra-revenue account in rental income in the Company’s consolidated statements of operations and comprehensive income for the years ended December 31, 2020 and 2019. 

    The Company recognized the following lease rental income for the years ended December 31, 2020 and 2019, respectively:

($ in thousands)
Year Ended December 31,
20202019
Fixed Contractual Lease Payments - Operating Leases$218,004 $244,666 
Variable Lease Payments - Operating Leases52,128 61,368 
Bad Debt Reserve(13,259)(3,620)
Straight-Line Rent Adjustment1,155 3,362 
Straight-Line Rent Reserve for Uncollectibility(4,177)(1,153)
Amortization of In-Place Lease Liabilities, net3,819 3,776 
Total$257,670 $308,399 


The weighted average remaining term of the lease agreements is approximately 4.5 years.  During the years ended December 31, 2020, 2019, and 2018, the Company earned overage rent of $0.2 million, $1.3 million, and $1.2 million, respectively. 
 
As of December 31, 2020, future minimum rentals to be received under non-cancelable operating leases for each of the next five years and thereafter, excluding variable lease payments, are as follows: 
 
($ in thousands)
2021$217,118 
2022196,856 
2023165,849 
2024137,803 
2025111,157 
Thereafter365,042 
Total$1,193,825 

Commitments under Ground Leases
  
As of December 31, 2020, we are obligated under nine ground leases for approximately 47 acres of land. Most of these ground leases require fixed annual rent payments.  The expiration dates of the remaining initial terms of these ground leases range from 2023 to 2092 with a weighted-average remaining term of 52.2 years.  Certain of these leases have five- to ten-year extension options ranging in total from 20 to 25 years.

    Upon adoption of the Leases standard, the Company did not recognize value during the option period for the right-of-use assets and lease liabilities as it was not probable the extension options will be exercised. Upon adoption, the Company recorded a right of use asset of $27.0 million and corresponding liability of $27.3 million. The right of use asset is included in prepaid and other assets and the lease liability is included in deferred revenue and other liabilities. This value was determined utilizing an estimate of our incremental borrowing rate that was specific to each lease based upon the term and underlying asset. These rates ranged from 3.93% to 6.33% with a weighted-average incremental borrowing rate of 5.86%.
Ground lease expense incurred by the Company on these operating leases for the years ended December 31, 2020, 2019, and 2018 was $1.9 million, $1.8 million, and $1.7 million, respectively. The Company made payments of $1.8 million and $1.7 million for the years ended December 31, 2020 and 2019, respectively, which were included in operating cash flows.
 
Future minimum lease payments due under ground leases for the next five years ending December 31 and thereafter are as follows: 
 
($ in thousands)
2021$1,789 
20221,815 
20231,636 
20241,600 
20251,582 
Thereafter68,971 
Total$77,393