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LEASE INFORMATION
 12 Months Ended
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,
202320222021
Fixed contractual lease payments – operating leases$637,915 $615,773 $292,873 
Variable lease payments – operating leases151,853 151,304 69,422 
Bad debt reserve(3,459)(6,027)(2,897)
Straight-line rent adjustments13,186 17,031 4,674 
Straight-line rent (reserve) recovery for uncollectibility(1,374)(553)716 
Amortization of in-place lease liabilities, net12,025 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 
2025566,314 
2026503,985 
2027432,467 
2028342,810 
Thereafter1,105,808 
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 
20255,306 
20265,413 
20275,586 
20285,044 
Thereafter105,644 
$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,
202320222021
Fixed contractual lease payments – operating leases$637,915 $615,773 $292,873 
Variable lease payments – operating leases151,853 151,304 69,422 
Bad debt reserve(3,459)(6,027)(2,897)
Straight-line rent adjustments13,186 17,031 4,674 
Straight-line rent (reserve) recovery for uncollectibility(1,374)(553)716 
Amortization of in-place lease liabilities, net12,025 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 
2025566,314 
2026503,985 
2027432,467 
2028342,810 
Thereafter1,105,808 
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 
20255,306 
20265,413 
20275,586 
20285,044 
Thereafter105,644 
$132,094 
Adjustment for discounting(63,169)
Lease liabilities as of December 31, 2023$68,925