Leases

9 Months Ended

Sep. 30, 2024


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,
	2024		2023		2024		2023
Rental income related to fixed lease payments(1)	$	122,617	$	111,832	$	360,899	$	331,776
Rental income related to variable lease payments(1)(2)	36,774		34,632		110,035		104,224
Straight-line rent amortization(3)	1,893		2,095		5,718		7,686
Amortization of lease assets	1,729		1,281		4,688		3,746
Lease buyout income	393		587		844		1,016
Adjustments for collectibility(4)	(1,626)		(861)		(4,050)		(2,174)
Total rental income	$	161,780	$	149,566	$	478,134	$	446,274

(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, 2024, 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 2024	$	115,593
2025	478,272
2026	418,163
2027	350,807
2028	277,928
Thereafter	699,267
Total	$	2,340,030

No single tenant comprised 10% or more of our aggregate annualized base rent (“ABR”) as of September 30, 2024. As of September 30, 2024, our wholly-owned real estate investments in Florida and California represented 12.2% and 10.9% of our ABR, respectively. As a result, the geographic concentration of our portfolio makes it particularly susceptible to adverse natural or economic events in the Florida and California real estate markets. In late September and early October 2024, Hurricanes Helene and Milton struck the southeast United States and caused various amounts of damage to our properties located in the region. While we are still in the process of analyzing the damages sustained to the properties, these are currently estimated to be approximately $2 million.