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LEASES

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

LEASES

3. LEASES

Lessor—The majority of our leases are largely similar in that the leased asset is retail space within our properties, and the lease agreements generally contain similar provisions and features, without substantial variations. All of our leases are currently classified as operating leases. Lease income related to our operating leases was as follows for the years ended December 31, 2021, 2020, and 2019 (in thousands):

			2021						2020						2019
Rental income related to fixed lease payments(1)			$	382,667					$	380,439					$	385,948
Rental income related to variable lease payments(1)(2)			119,077						125,256						127,790
Straight-line rent amortization(3)			9,005						3,258						9,003
Amortization of lease assets			3,539						3,138						4,138
Lease buyout income			3,485						1,237						1,166
Adjustments for collectibility(4)			1,722						(27,845)						(5,775)
Total rental income			$	519,495					$	485,483					$	522,270

(1)Includes rental income related to lease payments before assessing for collectibility.

(2)Variable payments are primarily related to tenant recovery income.

(3)For the years ended December 31, 2021, 2020, and 2019, includes unfavorable revenue adjustments to straight-line rent for tenants considered non-creditworthy of $0.5 million, $3.7 million, and $0.6 million, respectively.

(4)Includes general reserves as well as adjustments for tenants not considered creditworthy for which we are recording revenue on a cash basis, per ASC 842.

For the year ended December 31, 2021, we had net favorable changes of $4.7 million to general reserves. For the years ended 2020 and 2019, we had net unfavorable changes of $3.5 million and $2.4 million, respectively, to general reserves. Additionally, for the years ended December 31, 2021, 2020, and 2019, we had net unfavorable adjustments of $3.0 million, $24.4 million, and $3.3 million, respectively, related to monthly revenue for tenants that we deemed non-creditworthy and for which we were recording revenue on a cash basis.

Approximate future fixed contractual lease payments to be received under non-cancelable operating leases in effect as of December 31, 2021, assuming no new or renegotiated leases or option extensions on lease agreements, and including the impact of rent abatements, payment plans, and tenants who have been moved to the cash basis of accounting for revenue recognition purposes are as follows (in thousands):

Year			Amount
2022			$	393,971
2023			356,827
2024			303,809
2025			248,058
2026			183,695
Thereafter			456,161
Total			$	1,942,521

In response to the COVID-19 pandemic, we executed payment plans with a small subset of our tenants. As of December 31, 2021, we had $3.2 million of outstanding payment plans with our tenants and we expect to receive remaining amounts owed to us from these plans over a weighted-average term of approximately nine months.

No single tenant comprised 10% or more of our aggregate annualized base rent (“ABR”) as of December 31, 2021. As of December 31, 2021, our wholly-owned real estate investments in Florida and California represented 12.2% and 10.7% of our ABR, respectively. As a result, the geographic concentration of our portfolio makes it particularly susceptible to adverse weather or economic events, including the impact of the COVID-19 pandemic, in the Florida and California real estate markets.

Lessee—Lease assets and liabilities, grouped by balance sheet line where they are recorded, consisted of the following as of December 31, 2021 and 2020 (in thousands):

Balance Sheet Information			Balance Sheet Location			2021						2020
ROU assets, net - operating leases			Investment in Real Estate			$	3,946					$	3,867
ROU assets, net - operating and finance leases			Other Assets, Net			1,615						1,438
Operating lease liability			Accounts Payable and Other    Liabilities			5,311						5,731
Finance lease liability			Debt Obligations, Net			766						164

As of December 31, 2021, the weighted-average remaining lease term was approximately three years for finance leases and 23 years for operating leases. The weighted-average discount rate was 3.5% for finance leases and 4.3% for operating leases.

Future undiscounted payments for fixed lease charges by lease type, inclusive of options reasonably certain to be exercised, are as follows as of December 31, 2021 (in thousands):

			Undiscounted
Year			Operating						Finance
2022			$	823					$	237
2023			672						295
2024			546						279
2025			317						—
2026			254						—
Thereafter			5,678						—
Total undiscounted cash flows from leases			8,290						811
Total lease liabilities recorded at present value			5,311						766
Difference between undiscounted cash flows and present value of lease liabilities			$	2,979					$	45

LEASES

3. LEASES

Lessor—The majority of our leases are largely similar in that the leased asset is retail space within our properties, and the lease agreements generally contain similar provisions and features, without substantial variations. All of our leases are currently classified as operating leases. Lease income related to our operating leases was as follows for the years ended December 31, 2021, 2020, and 2019 (in thousands):

			2021						2020						2019
Rental income related to fixed lease payments(1)			$	382,667					$	380,439					$	385,948
Rental income related to variable lease payments(1)(2)			119,077						125,256						127,790
Straight-line rent amortization(3)			9,005						3,258						9,003
Amortization of lease assets			3,539						3,138						4,138
Lease buyout income			3,485						1,237						1,166
Adjustments for collectibility(4)			1,722						(27,845)						(5,775)
Total rental income			$	519,495					$	485,483					$	522,270

(1)Includes rental income related to lease payments before assessing for collectibility.

(2)Variable payments are primarily related to tenant recovery income.

(3)For the years ended December 31, 2021, 2020, and 2019, includes unfavorable revenue adjustments to straight-line rent for tenants considered non-creditworthy of $0.5 million, $3.7 million, and $0.6 million, respectively.

(4)Includes general reserves as well as adjustments for tenants not considered creditworthy for which we are recording revenue on a cash basis, per ASC 842.

For the year ended December 31, 2021, we had net favorable changes of $4.7 million to general reserves. For the years ended 2020 and 2019, we had net unfavorable changes of $3.5 million and $2.4 million, respectively, to general reserves. Additionally, for the years ended December 31, 2021, 2020, and 2019, we had net unfavorable adjustments of $3.0 million, $24.4 million, and $3.3 million, respectively, related to monthly revenue for tenants that we deemed non-creditworthy and for which we were recording revenue on a cash basis.

Approximate future fixed contractual lease payments to be received under non-cancelable operating leases in effect as of December 31, 2021, assuming no new or renegotiated leases or option extensions on lease agreements, and including the impact of rent abatements, payment plans, and tenants who have been moved to the cash basis of accounting for revenue recognition purposes are as follows (in thousands):

Year			Amount
2022			$	393,971
2023			356,827
2024			303,809
2025			248,058
2026			183,695
Thereafter			456,161
Total			$	1,942,521

In response to the COVID-19 pandemic, we executed payment plans with a small subset of our tenants. As of December 31, 2021, we had $3.2 million of outstanding payment plans with our tenants and we expect to receive remaining amounts owed to us from these plans over a weighted-average term of approximately nine months.

No single tenant comprised 10% or more of our aggregate annualized base rent (“ABR”) as of December 31, 2021. As of December 31, 2021, our wholly-owned real estate investments in Florida and California represented 12.2% and 10.7% of our ABR, respectively. As a result, the geographic concentration of our portfolio makes it particularly susceptible to adverse weather or economic events, including the impact of the COVID-19 pandemic, in the Florida and California real estate markets.

Lessee—Lease assets and liabilities, grouped by balance sheet line where they are recorded, consisted of the following as of December 31, 2021 and 2020 (in thousands):

Balance Sheet Information			Balance Sheet Location			2021						2020
ROU assets, net - operating leases			Investment in Real Estate			$	3,946					$	3,867
ROU assets, net - operating and finance leases			Other Assets, Net			1,615						1,438
Operating lease liability			Accounts Payable and Other    Liabilities			5,311						5,731
Finance lease liability			Debt Obligations, Net			766						164

As of December 31, 2021, the weighted-average remaining lease term was approximately three years for finance leases and 23 years for operating leases. The weighted-average discount rate was 3.5% for finance leases and 4.3% for operating leases.

Future undiscounted payments for fixed lease charges by lease type, inclusive of options reasonably certain to be exercised, are as follows as of December 31, 2021 (in thousands):

			Undiscounted
Year			Operating						Finance
2022			$	823					$	237
2023			672						295
2024			546						279
2025			317						—
2026			254						—
Thereafter			5,678						—
Total undiscounted cash flows from leases			8,290						811
Total lease liabilities recorded at present value			5,311						766
Difference between undiscounted cash flows and present value of lease liabilities			$	2,979					$	45

LEASES

3. LEASES

Lessor—The majority of our leases are largely similar in that the leased asset is retail space within our properties, and the lease agreements generally contain similar provisions and features, without substantial variations. All of our leases are currently classified as operating leases. Lease income related to our operating leases was as follows for the years ended December 31, 2021, 2020, and 2019 (in thousands):

			2021						2020						2019
Rental income related to fixed lease payments(1)			$	382,667					$	380,439					$	385,948
Rental income related to variable lease payments(1)(2)			119,077						125,256						127,790
Straight-line rent amortization(3)			9,005						3,258						9,003
Amortization of lease assets			3,539						3,138						4,138
Lease buyout income			3,485						1,237						1,166
Adjustments for collectibility(4)			1,722						(27,845)						(5,775)
Total rental income			$	519,495					$	485,483					$	522,270

(1)Includes rental income related to lease payments before assessing for collectibility.

(2)Variable payments are primarily related to tenant recovery income.

(3)For the years ended December 31, 2021, 2020, and 2019, includes unfavorable revenue adjustments to straight-line rent for tenants considered non-creditworthy of $0.5 million, $3.7 million, and $0.6 million, respectively.

(4)Includes general reserves as well as adjustments for tenants not considered creditworthy for which we are recording revenue on a cash basis, per ASC 842.

For the year ended December 31, 2021, we had net favorable changes of $4.7 million to general reserves. For the years ended 2020 and 2019, we had net unfavorable changes of $3.5 million and $2.4 million, respectively, to general reserves. Additionally, for the years ended December 31, 2021, 2020, and 2019, we had net unfavorable adjustments of $3.0 million, $24.4 million, and $3.3 million, respectively, related to monthly revenue for tenants that we deemed non-creditworthy and for which we were recording revenue on a cash basis.

Approximate future fixed contractual lease payments to be received under non-cancelable operating leases in effect as of December 31, 2021, assuming no new or renegotiated leases or option extensions on lease agreements, and including the impact of rent abatements, payment plans, and tenants who have been moved to the cash basis of accounting for revenue recognition purposes are as follows (in thousands):

Year			Amount
2022			$	393,971
2023			356,827
2024			303,809
2025			248,058
2026			183,695
Thereafter			456,161
Total			$	1,942,521

In response to the COVID-19 pandemic, we executed payment plans with a small subset of our tenants. As of December 31, 2021, we had $3.2 million of outstanding payment plans with our tenants and we expect to receive remaining amounts owed to us from these plans over a weighted-average term of approximately nine months.

No single tenant comprised 10% or more of our aggregate annualized base rent (“ABR”) as of December 31, 2021. As of December 31, 2021, our wholly-owned real estate investments in Florida and California represented 12.2% and 10.7% of our ABR, respectively. As a result, the geographic concentration of our portfolio makes it particularly susceptible to adverse weather or economic events, including the impact of the COVID-19 pandemic, in the Florida and California real estate markets.

Lessee—Lease assets and liabilities, grouped by balance sheet line where they are recorded, consisted of the following as of December 31, 2021 and 2020 (in thousands):

Balance Sheet Information			Balance Sheet Location			2021						2020
ROU assets, net - operating leases			Investment in Real Estate			$	3,946					$	3,867
ROU assets, net - operating and finance leases			Other Assets, Net			1,615						1,438
Operating lease liability			Accounts Payable and Other    Liabilities			5,311						5,731
Finance lease liability			Debt Obligations, Net			766						164

As of December 31, 2021, the weighted-average remaining lease term was approximately three years for finance leases and 23 years for operating leases. The weighted-average discount rate was 3.5% for finance leases and 4.3% for operating leases.

Future undiscounted payments for fixed lease charges by lease type, inclusive of options reasonably certain to be exercised, are as follows as of December 31, 2021 (in thousands):

			Undiscounted
Year			Operating						Finance
2022			$	823					$	237
2023			672						295
2024			546						279
2025			317						—
2026			254						—
Thereafter			5,678						—
Total undiscounted cash flows from leases			8,290						811
Total lease liabilities recorded at present value			5,311						766
Difference between undiscounted cash flows and present value of lease liabilities			$	2,979					$	45

X

- References

No definition available.

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- Definition

The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=77888251

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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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=77888251

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- Definition

The entire disclosure for lessor's operating leases.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 30
-URI http://asc.fasb.org/subtopic&trid=77888252

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