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Leases | 9 Months Ended
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Sep. 30, 2021
Leases [Abstract] |
Leases | 11. Leases As Lessor The Company is engaged in the operation of shopping centers and other retail properties that are either owned or, with respect to certain shopping centers, operated under long-term ground leases that expire at various dates through June 20, 2066, with renewal options (as discussed further below). Space in the shopping centers is leased to tenants pursuant to agreements that provide for terms ranging generally from one month to sixty years and generally provide for additional rents based on certain operating expenses as well as tenants’ sales volumes. During the nine months ended September 30, 2021 and 2020, the Company earned $42.8 million and $41.8 million, respectively in variable lease revenues, primarily for real estate taxes and common area maintenance charges, which are included in rental income in the consolidated statements of operations. Reserve Analysis The activity for the reserves related to billed rents and straight-line rents (including those under specific operating leases where the collection of rents is assessed to be not probable) is as follows:
|  | Nine Months Ended September 30, 2021 |
|  | Balance at Beginning of Period |  |  | Provision (Recovery) |  |  | Write-Offs |  |  | Balance at End of Period |
Allowance for credit loss - billed rents |  | $ | 30,366 |  |  | $ | 973 |  |  | $ | (2,909 | ) |  | $ | 28,430 |
Straight-line rent reserves |  |  | 15,042 |  |  |  | 254 |  |  |  | (2,648 | ) |  |  | 12,648 |
Total - rents receivable |  | $ | 45,408 |  |  | $ | 1,227 |  |  | $ | (5,557 | ) |  | $ | 41,078 |
Tenant Settlement On September 24, 2021, the Company entered into a conditional settlement agreement with its former tenant and lease guarantor at one of its Core properties for the payment by such former tenant and guarantor of a minimum of $5.4 million in accordance with a payment schedule set forth and subject to the terms in the conditional settlement agreement. The payments relate to tenant’s default under the lease and its subsequent termination by the Company. Given the inherent uncertainties involving collectability, the Company has not recognized any amounts in its consolidated financial statements. Such amounts will be recognized when realized. As Lessee During the nine months ended September 30, 2021, the Company:  modified its Rye, New York corporate office lease during the first quarter of 2021. As a result, of the modification, the lease was remeasured and the lease liability and right-of-use asset were each reduced by $0.4 million.  terminated its Fund IV lease at 110 University Place in New York City during the second quarter of 2021 (which was previously impaired in 2020, Note 8) for $3.6 million, and de-recognized the related right-of-use asset of $31.4 million, lease liability of $46.0 million and building improvements and other assets totaling $10.3 million, resulting in a gain on lease termination of $0.7 million, or $0.2 million at the Company's share, which is reflected within Gain on disposition of properties in the consolidated statement of operations. During the year ended December 31, 2020, the Company:  entered into one new office lease as lessee for which the lease commenced in the third quarter of 2020. The Company recorded a right-of-use asset and corresponding lease liability of $1.7 million;  modified its 991 Madison master lease by converting the 49-year fixed term to a 15-year term. As a result of the modification, the lease was reclassified from a finance lease to an operating lease during the second quarter of 2020;  consolidated one property within the BSP II portfolio, 102 E. Broughton, (Note 2), which was subject to a ground lease classified as an operating lease, during the second quarter of 2020;  recorded an impairment charge of $12.3 million on a right-of-use asset for a Fund IV property, 110 University Place (Note 8) during the fourth quarter of 2020;  renewed one ground lease for Branch Plaza, an operating lease, for 22 years during the second quarter of 2020; and  modified its 1238 Wisconsin lease agreement in the fourth quarter of 2020 for a reduced purchase price from $14.5 million to $11.5 million and, as a result, remeasured and reduced its right-of-use asset and lease liability by $1.9 million . Additional disclosures regarding the Company’s leases as lessee are as follows:
| Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
| 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Lease Cost |  |  |  |  |  |  |  |  |  |  |
Finance lease cost: |  |  |  |  |  |  |  |  |  |  |
Amortization of right-of-use assets | $ | 226 |  |  |  | 226 |  |  | $ | 677 |  |  | $ | 1,370 |
Interest on lease liabilities |  | 97 |  |  |  | 92 |  |  |  | 289 |  |  |  | 1,541 |
Subtotal |  | 323 |  |  |  | 318 |  |  |  | 966 |  |  |  | 2,911 |
Operating lease cost |  | 1,334 |  |  |  | 2,258 |  |  |  | 5,850 |  |  |  | 5,377 |
Variable lease cost |  | 23 |  |  |  | 5 |  |  |  | 57 |  |  |  | 27 |
Total lease cost | $ | 1,680 |  |  | $ | 2,581 |  |  | $ | 6,873 |  |  | $ | 8,315 |
Other Information |  |  |  |  |  |  |  |  |  |  |
Weighted-average remaining lease term - finance leases (years) |  |  |  |  |  |  |  | 32.8 |  |  |  | 33.5 |
Weighted-average remaining lease term - operating leases (years) |  |  |  |  |  |  |  | 14.2 |  |  |  | 26.5 |
Weighted-average discount rate - finance leases |  |  |  |  |  |  |  | 6.3 | % |  |  | 6.2 | %
Weighted-average discount rate - operating leases |  |  |  |  |  |  |  | 5.1 | % |  |  | 5.4 | %
Right-of-use assets – finance leases are included in Operating real estate (Note 2) in the consolidated balance sheets. Lease liabilities – finance leases are included in Accounts payable and other liabilities in the consolidated balance sheets (Note 5). Operating lease cost comprises amortization of right-of-use assets for operating properties (related to ground rents) or amortization of right-of-use assets for office and corporate assets and is included in Property operating expense or General and administrative expense, respectively, in the consolidated statements of operations. Finance lease cost comprises amortization of right-of-use assets for certain ground leases, which is included in Property operating expense, as well as interest on lease liabilities, which is included in Interest expense in the consolidated statements of operations. Lease Obligations The scheduled future minimum (i) rental revenues from rental properties under the terms of non-cancelable tenant leases greater than one year (assuming no new or renegotiated leases or option extensions for such premises) and (ii) rental payments under the terms of all non-cancelable operating and finance leases in which the Company is the lessee, principally for office space, land and equipment, as of September 30, 2021, are summarized as follows (in thousands):
|  |  |  |  | Minimum Rental Payments |
Year Ending December 31, |  | Minimum Rental Revenues (a) |  |  | Operating Leases (b) |  |  | Finance Leases (b) |
2021 (Remainder) |  | $ | 49,136 |  |  | $ | 1,380 |  |  | $ | — |
2022 |  |  | 208,208 |  |  |  | 5,368 |  |  |  | 34 |
2023 |  |  | 197,110 |  |  |  | 5,389 |  |  |  | — |
2024 |  |  | 172,240 |  |  |  | 5,414 |  |  |  | — |
2025 |  |  | 140,533 |  |  |  | 5,329 |  |  |  | — |
Thereafter |  |  | 606,694 |  |  |  | 29,711 |  |  |  | 12,515 |
|  |  | 1,373,921 |  |  |  | 52,591 |  |  |  | 12,549 |
Interest |  |  | — |  |  |  | (12,848 | ) |  |  | (6,036 | )
Total |  | $ | 1,373,921 |  |  | $ | 39,743 |  |  | $ | 6,513 |
a) Amount represents contractual lease maturities at September 30, 2021 including any extension options that management determined were reasonably certain of exercise. During 2020, numerous tenants were forced to suspend operations by government mandate as a result of the COVID-19 Pandemic. The Company has negotiated payment agreements with selected tenants which resulted in rent concessions or deferral of rents as discussed further below. b) Minimum rental payments exclude options or renewals not reasonably certain of exercise. During the three and nine months ended September 30, 2021 and 2020, no single tenant or property collectively comprised more than 10% of the Company’s consolidated total revenues. COVID-19 Pandemic Impacts Beginning in March 2020, the COVID-19 Pandemic has had a material adverse impact on economic and market conditions, and consumer activity, and triggered a period of global and domestic economic slowdown. The COVID-19 Pandemic and government responses created disruption in global supply chains and has been adversely impacting many industries, including the domestic retail sectors in which the Company’s tenants operate. Under governmental restrictions and guidance, certain retailers were considered “essential businesses” and were permitted to remain fully operating during the COVID-19 Pandemic, while other “non-essential businesses” were ordered to decrease or close operations for an indeterminate period of time to protect their employees and customers from the spread of the virus. These disruptions, which have substantially ceased as of the date of this Report, have impacted the collectability of rent from the Company’s affected tenants primarily in 2020 and to a lesser extent in 2021. While the Company considers disruptions related to the COVID-19 Pandemic to be substantially over, if such government mandated closures are reinstated, they may have a material, adverse effect on the Company’s revenues, results of operations, financial condition, and liquidity in future periods. Rent Collections – The Company collected or negotiated payment agreements of approximately 97.1% and 92.5% of its third quarter pre-COVID billings (original contract rents without regard to deferral or abatement agreements) for its Core Portfolio and the Funds, respectively. Earnings Impact (Amounts Reflect the Company's Share) – The Company incurred aggregate credit (recoveries) losses and rent abatements totaling approxim ately ($0.3) million and $3.4 million for the three and nine months ended September 30, 2021, respectively, compared t o $13.3 million and $26.9 m illion for the three and nine months ended September 30, 2020, respectively, primarily related to the COVID-19 Pandemic. In addition, the Company incurred impairment charges of $2.3 million for the three and nine months ended September 30, 2021 and $12.4 million for the nine months ended September 30, 2020 primarily related to the COVID-19 Pandemic (Note 8). Other Impacts  Rent Concession Agreements – During the nine months ended September 30, 2021, the Company executed 84 rent concession arrangements with tenants comprised of 18 agreements for rent deferral and 66 agreements for rent abatemen ts. Of these deferral agreemen ts, 16 were accounted for as if no changes to the contract were made and therefore there were no changes to the current or future recognition of revenue a nd $6.4 million of de ferred receivables are included in Rents receivable in the consolidated balance sheet at September 30, 2021. Rent abatements rep resented a $3.0 million reduction in revenues at the Company's share for the nine months ended September 30, 2021.  Occupancy – At September 30, 2021, the Company’s pro rata Core and Fund leased occupancy rates were 92.6% and 90.0%, respectively, compared to 91.1% and 89.8% respectively, at September 30, 2020 reflecting primarily recovery since the COVID-19 Pandemic in 2020.

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- Definition The entire disclosure for lessor entity's leasing arrangements for operating, capital and leveraged leases. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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