Leases

3 Months Ended

Mar. 31, 2024

11. Leases

As Lessor

The Company has approximately 1,000 leases in the leasing of shopping centers and other retail properties that are either owned or, with respect to certain shopping centers, leased under long-term ground leases (see below) that expire at various dates through December 31, 2121, with renewal options. Certain leases may allow for the tenants to terminate the leases before the expiration of the lease term. Space in the properties is leased to tenants pursuant to agreements that generally provide for terms ranging from one month to sixty years and for additional rents based on certain operating expenses as well as tenants’ sales volumes.

The components of rental revenue are as follows (in thousands):


	Three Months Ended March 31,
	2024		2023
Fixed lease revenue	$	68,657	$	64,882
Variable lease revenue		17,380		15,855
Total rental revenue	$	86,037	$	80,737

The scheduled future minimum 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) as of March 31, 2024, are summarized as follows (in thousands):



Year Ending December 31,	Minimum Rental Revenues (a)
2024 (Remainder)	$	180,170
2025		240,000
2026		217,554
2027		193,180
2028		163,307
Thereafter		702,061
Total	$	1,696,272

(a)

Amount represents contractual lease maturities as of March 31, 2024 including any extension options that management determined were reasonably certain of exercise.

During the three months ended March 31, 2024 and 2023, no single tenant or property collectively comprised more than 10% of the Company’s consolidated total revenues.

As Lessee

The Company has properties in its portfolio that are currently owned by third parties. We also lease real estate for equipment and office space. We lease these properties pursuant to ground leases that provide us the right to operate each such property, and generally provide terms ranging from five months to 97 years.


	Minimum Rental Payments
Year Ending December 31,	Operating Leases (a)			Finance Leases (a)
2024 (Remainder)	$	4,059		$	2,829
2025		5,329			2,311
2026		5,173			1,264
2027		4,373			1,264
2028		4,157			1,310
Thereafter		15,912			154,018
		39,003			162,996
Interest		(8,383	)		(130,300	)
Total	$	30,620		$	32,696

(a)

Minimum rental payments include $8.4 million of interest related to operating leases and $130.3 million related to finance leases and exclude options or renewals not reasonably certain of exercise.

Additional disclosures regarding the Company’s leases as lessee are as follows (dollars in thousands):


	Three Months Ended March 31,
	2024			2023
Lease Cost
Finance lease cost:
Amortization of right-of-use assets	$	249		$	226
Interest on lease liabilities		522			106
Subtotal		771			332
Operating lease cost		1,331			1,337
Variable lease cost		75			20
Total lease cost	$	2,177		$	1,689

Other Information
Weighted-average remaining lease term - finance leases (years)		58.2			31.8
Weighted-average remaining lease term - operating leases (years)		9.5			13.4
Weighted-average discount rate - finance leases		6.5	%		6.3	%
Weighted-average discount rate - operating leases		5.1	%		5.1	%