Leases

3 Months Ended

Mar. 31, 2025

11. Leases

As Lessor

The Company has approximately 1,300 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, 2123, 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,
	2025		2024
Fixed lease revenue	$	84,203	$	68,657
Variable lease revenue		18,437		17,380
Total rental revenue	$	102,640	$	86,037

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, 2025, are summarized as follows (in thousands):



Year Ending December 31,	Minimum Rental Revenues (a)
2025 (Remainder)	$	204,066
2026		271,626
2027		246,866
2028		214,446
2029		176,542
Thereafter		631,125
Total	$	1,744,671

(a)

Amount represents contractual lease maturities as of March 31, 2025 including any extension options that management determined were reasonably certain of exercise.

During the three months ended March 31, 2025, the Company recognized $8.4 million as rental and termination income related to a lease termination at City Center, a Core Portfolio property, which is included in Other revenue on the Company’s condensed consolidated statements of operations.

During the three months ended March 31, 2025 and 2024, no single tenant or property collectively comprised more than 10% of the Company’s 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 years to 98 years.


	Minimum Rental Payments
Year Ending December 31,	Operating Leases (a)			Finance Leases (a)
2025 (Remainder)	$	3,989		$	1,051
2026		5,638			1,350
2027		4,850			1,350
2028		4,646			1,396
2029		4,121			1,415
Thereafter		13,064			155,319
		36,308			161,881
Interest		(7,375	)		(130,262	)
Total	$	28,933		$	31,619

(a)

Minimum rental payments include $7.4 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,
	2025			2024
Lease Cost
Finance lease cost:
Amortization of right-of-use assets	$	374		$	249
Interest on lease liabilities		512			522
Subtotal		886			771
Operating lease cost		1,306			1,331
Variable lease cost		89			75
Total lease cost	$	2,281		$	2,177

Cash Paid
Payments of operating lease obligations - operating activities	$	1,366		$	1,355
Payments of interest on finance lease obligations - operating activities		512			522
Payments of finance lease obligations - financing activities		246			42

	As of March 31,
	2025			2024
Other Information
Weighted-average remaining lease term - finance leases (years)		56.6			58.2
Weighted-average remaining lease term - operating leases (years)		8.4			9.5
Weighted-average discount rate - finance leases		6.5	%		6.5	%
Weighted-average discount rate - operating leases		5.1	%		5.1	%

During the three months ended March 31, 2025, the Company entered into a new corporate office lease and recorded a right-of-use assets - operating lease and corresponding lease liability - operating lease of $2.1 million.