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LEASE INFORMATION
 12 Months Ended
Dec. 31, 2024
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 the reimbursement of operating expenses are based upon the operating expense activity for the period.
Rental income related to the Company’s operating leases is comprised of the following for the years ended December 31, 2024, 2023 and 2022 (in thousands):
Year Ended December 31,
202420232022
Fixed contractual lease payments – operating leases$653,537 $637,915 $615,773 
Variable lease payments – operating leases156,200 151,853 151,304 
Bad debt reserve(5,356)(3,459)(6,027)
Straight-line rent adjustments12,742 13,186 17,031 
Straight-line rent reserve for uncollectibility(653)(1,374)(553)
Amortization of in-place lease liabilities, net10,078 12,025 4,821 
Rental income$826,548 $810,146 $782,349 
The weighted-average remaining term of the lease agreements is approximately 5.1 years. During the years ended December 31, 2024, 2023 and 2022, the Company earned overage rent totaling $7.1 million, $7.5 million, and $5.9 million, respectively.
As of December 31, 2024, 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
2025$643,851 
2026597,134 
2027524,291 
2028435,178 
2029332,941 
Thereafter999,811 
Total$3,533,206 
Commitments under Ground Leases
As of December 31, 2024, 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 33.5 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, 2024, 2023 and 2022, the Company incurred ground lease expense on these operating leases of $6.3 million, $6.2 million, and $6.2 million, respectively. The Company made payments of $5.2 million, $5.2 million, and $5.1 million during the years ended December 31, 2024, 2023 and 2022, respectively, which are included within operating cash flows.
As of December 31, 2024, future minimum lease payments due under ground leases for each of the next five years and thereafter are as follows (in thousands):
Lease Obligations
2025$5,169 
20265,174 
20275,219 
20284,979 
20294,935 
Thereafter100,709 
$126,185 
Adjustment for discounting(59,148)
Lease liabilities as of December 31, 2024$67,037 
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 the reimbursement of operating expenses are based upon the operating expense activity for the period.
Rental income related to the Company’s operating leases is comprised of the following for the years ended December 31, 2024, 2023 and 2022 (in thousands):
Year Ended December 31,
202420232022
Fixed contractual lease payments – operating leases$653,537 $637,915 $615,773 
Variable lease payments – operating leases156,200 151,853 151,304 
Bad debt reserve(5,356)(3,459)(6,027)
Straight-line rent adjustments12,742 13,186 17,031 
Straight-line rent reserve for uncollectibility(653)(1,374)(553)
Amortization of in-place lease liabilities, net10,078 12,025 4,821 
Rental income$826,548 $810,146 $782,349 
The weighted-average remaining term of the lease agreements is approximately 5.1 years. During the years ended December 31, 2024, 2023 and 2022, the Company earned overage rent totaling $7.1 million, $7.5 million, and $5.9 million, respectively.
As of December 31, 2024, 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
2025$643,851 
2026597,134 
2027524,291 
2028435,178 
2029332,941 
Thereafter999,811 
Total$3,533,206 
Commitments under Ground Leases
As of December 31, 2024, 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 33.5 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, 2024, 2023 and 2022, the Company incurred ground lease expense on these operating leases of $6.3 million, $6.2 million, and $6.2 million, respectively. The Company made payments of $5.2 million, $5.2 million, and $5.1 million during the years ended December 31, 2024, 2023 and 2022, respectively, which are included within operating cash flows.
As of December 31, 2024, future minimum lease payments due under ground leases for each of the next five years and thereafter are as follows (in thousands):
Lease Obligations
2025$5,169 
20265,174 
20275,219 
20284,979 
20294,935 
Thereafter100,709 
$126,185 
Adjustment for discounting(59,148)
Lease liabilities as of December 31, 2024$67,037