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LEASE INFORMATION | 12 Months Ended
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Dec. 31, 2023
Leases [Abstract] |
LEASE INFORMATION | LEASE INFORMATION Rental Income The Company receives rental income from the leasing of retail and office space. The lease agreements 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 their lease agreement to extend their lease upon the expiration of the 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. In connection with the October 2021 merger with RPAI, the Company assumed all leases in place at legacy RPAI properties and began recognizing rental income under the respective leases upon completion of the merger on October 22, 2021. Rental income related to the Company’s operating leases is comprised of the following for the years ended December 31, 2023, 2022 and 2021 (in thousands):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Fixed contractual lease payments – operating leases | $ | 637,915 |  |  | $ | 615,773 |  |  | $ | 292,873 |
Variable lease payments – operating leases | 151,853 |  |  | 151,304 |  |  | 69,422 |
Bad debt reserve | (3,459) |  |  | (6,027) |  |  | (2,897) |
Straight-line rent adjustments | 13,186 |  |  | 17,031 |  |  | 4,674 |
Straight-line rent (reserve) recovery for uncollectibility | (1,374) |  |  | (553) |  |  | 716 |
Amortization of in-place lease liabilities, net | 12,025 |  |  | 4,821 |  |  | 2,611 |
Rental income | $ | 810,146 |  |  | $ | 782,349 |  |  | $ | 367,399 |
The weighted average remaining term of the lease agreements is approximately 5.1 years. During the years ended December 31, 2023, 2022 and 2021, the Company earned overage rent totaling $7.5 million, $5.9 million, and $0.8 million, respectively. As of December 31, 2023, future minimum rentals to be received under non-cancelable operating leases, excluding variable lease payments and amounts deferred under lease concession agreements, for each of the next five years and thereafter are as follows (in thousands):
| Lease Payments
2024 | $ | 615,479 |
2025 | 566,314 |
2026 | 503,985 |
2027 | 432,467 |
2028 | 342,810 |
Thereafter | 1,105,808 |
Total | $ | 3,566,863 |
Commitments under Ground Leases As of December 31, 2023, we are obligated under 12 ground leases for approximately 98 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 2025 to 2092 with a weighted average remaining term of 34.0 years. Certain of these leases have five- to 10-year extension options ranging in total from 20 to 25 years. Right-of-use assets are included within “Prepaid and other assets” and lease liabilities are included within “Deferred revenue and other liabilities” in the accompanying consolidated balance sheets. During the years ended December 31, 2023, 2022 and 2021, the Company incurred ground lease expense on these operating leases of $3.9 million, $3.9 million, and $2.8 million, respectively. The Company made payments of $5.2 million, $5.1 million, and $2.6 million during the years ended December 31, 2023, 2022 and 2021, respectively, which are included within operating cash flows. As of December 31, 2023, future minimum lease payments due under ground leases for each of the next five years and thereafter are as follows (in thousands):
| Lease Obligations
2024 | $ | 5,101 |
2025 | 5,306 |
2026 | 5,413 |
2027 | 5,586 |
2028 | 5,044 |
Thereafter | 105,644 |
| $ | 132,094 |
Adjustment for discounting | (63,169) |
Lease liabilities as of December 31, 2023 | $ | 68,925 |
LEASE INFORMATION | LEASE INFORMATION Rental Income The Company receives rental income from the leasing of retail and office space. The lease agreements 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 their lease agreement to extend their lease upon the expiration of the 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. In connection with the October 2021 merger with RPAI, the Company assumed all leases in place at legacy RPAI properties and began recognizing rental income under the respective leases upon completion of the merger on October 22, 2021. Rental income related to the Company’s operating leases is comprised of the following for the years ended December 31, 2023, 2022 and 2021 (in thousands):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Fixed contractual lease payments – operating leases | $ | 637,915 |  |  | $ | 615,773 |  |  | $ | 292,873 |
Variable lease payments – operating leases | 151,853 |  |  | 151,304 |  |  | 69,422 |
Bad debt reserve | (3,459) |  |  | (6,027) |  |  | (2,897) |
Straight-line rent adjustments | 13,186 |  |  | 17,031 |  |  | 4,674 |
Straight-line rent (reserve) recovery for uncollectibility | (1,374) |  |  | (553) |  |  | 716 |
Amortization of in-place lease liabilities, net | 12,025 |  |  | 4,821 |  |  | 2,611 |
Rental income | $ | 810,146 |  |  | $ | 782,349 |  |  | $ | 367,399 |
The weighted average remaining term of the lease agreements is approximately 5.1 years. During the years ended December 31, 2023, 2022 and 2021, the Company earned overage rent totaling $7.5 million, $5.9 million, and $0.8 million, respectively. As of December 31, 2023, future minimum rentals to be received under non-cancelable operating leases, excluding variable lease payments and amounts deferred under lease concession agreements, for each of the next five years and thereafter are as follows (in thousands):
| Lease Payments
2024 | $ | 615,479 |
2025 | 566,314 |
2026 | 503,985 |
2027 | 432,467 |
2028 | 342,810 |
Thereafter | 1,105,808 |
Total | $ | 3,566,863 |
Commitments under Ground Leases As of December 31, 2023, we are obligated under 12 ground leases for approximately 98 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 2025 to 2092 with a weighted average remaining term of 34.0 years. Certain of these leases have five- to 10-year extension options ranging in total from 20 to 25 years. Right-of-use assets are included within “Prepaid and other assets” and lease liabilities are included within “Deferred revenue and other liabilities” in the accompanying consolidated balance sheets. During the years ended December 31, 2023, 2022 and 2021, the Company incurred ground lease expense on these operating leases of $3.9 million, $3.9 million, and $2.8 million, respectively. The Company made payments of $5.2 million, $5.1 million, and $2.6 million during the years ended December 31, 2023, 2022 and 2021, respectively, which are included within operating cash flows. As of December 31, 2023, future minimum lease payments due under ground leases for each of the next five years and thereafter are as follows (in thousands):
| Lease Obligations
2024 | $ | 5,101 |
2025 | 5,306 |
2026 | 5,413 |
2027 | 5,586 |
2028 | 5,044 |
Thereafter | 105,644 |
| $ | 132,094 |
Adjustment for discounting | (63,169) |
Lease liabilities as of December 31, 2023 | $ | 68,925 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-30/tableOfContent + Details
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