Leases

9 Months Ended

Sep. 30, 2022


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 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Rental income related to fixed lease payments(1)	$	105,252	$	95,080	$	309,925	$	284,531
Rental income related to variable lease payments(1)(2)	32,545		29,919		95,443		88,774
Straight-line rent amortization(3)	3,752		2,365		8,617		6,627
Amortization of lease assets	1,059		898		3,113		2,602
Lease buyout income	221		560		2,362		3,138
Adjustments for collectibility(4)	28		4		(625)		1,112
Total rental income	$	142,857	$	128,826	$	418,835	$	386,784

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

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

(3)Includes revenue adjustments to straight-line rent for tenants considered non-creditworthy.

(4)Includes general reserves as well as adjustments for tenants considered non-creditworthy for which we are recording revenue on a cash basis, per Accounting Standards Codification (“ASC”) Topic 842, Leases.

Approximate future fixed contractual lease payments to be received under non-cancelable operating leases in effect as of September 30, 2022, assuming no new or renegotiated leases or option extensions on lease agreements, and including the impact of rent abatements and tenants who have been moved to the cash basis of accounting for revenue recognition purposes, are as follows (in thousands):


Year	Amount
Remaining 2022	$	102,503
2023	412,634
2024	364,652
2025	307,774
2026	243,613
Thereafter	626,853
Total	$	2,058,029

No single tenant comprised 10% or more of our aggregate annualized base rent (“ABR”) as of September 30, 2022. As of September 30, 2022, our wholly-owned real estate investments in Florida and California represented 11.7% and 10.6% of our

ABR, respectively. As a result, the geographic concentration of our portfolio makes it particularly susceptible to adverse weather or economic events in the Florida and California real estate markets (See “Hurricane Ian” in Note 4).