Leases

9 Months Ended

Sep. 30, 2025

11. Leases

As Lessor

The Company’s primary source of revenue is derived from lease agreements related to its portfolio of shopping centers and other retail properties. As of September 30, 2025, the Company was party to approximately 1,400 leases, which include both properties owned directly and those operated under long-term ground leases. These lease agreements have contractual terms that extend through February 2, 2084, and many include tenant renewal options. Certain leases also provide tenants with early termination rights.

Lease terms generally range from one month to sixty years. In addition to fixed base rent, many leases include provisions for variable lease payments, such as reimbursements for operating expenses and rent based on a percentage of the tenant’s sales volume.

The following table presents the components of rental revenue, disaggregated into fixed and variable lease income (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Fixed lease revenue	$	80,558	$	70,073	$	243,631	$	208,096
Variable lease revenue		18,156		16,215		56,020		49,855
Total rental revenue	$	98,714	$	86,288	$	299,651	$	257,951

The following table summarizes the Company’s scheduled future minimum rental revenues under non-cancelable tenant leases with remaining terms greater than one year, as of September 30, 2025. These amounts assume no new or renegotiated leases or exercise of renewal options not deemed reasonably certain (in thousands):



Year Ending December 31,	Minimum Rental Revenues
2025 (Remainder)	$	71,497
2026		300,258
2027		284,606
2028		252,945
2029		215,119
Thereafter		833,535
Total	$	1,957,960

During the first quarter of 2025, the Company recognized $8.4 million as rental and termination income related to a lease termination at City Center, a REIT Portfolio property, which is included in Other revenue on the Company’s Condensed Consolidated statements of operations.

During the three and nine months ended September 30, 2025 and 2024, no single tenant or property collectively comprised more than 10% of the Company’s total revenues.

As Lessee

The Company leases certain properties that are owned by third parties, including ground leases for retail properties and leases for office space and equipment. These leases grant the Company the right to operate the underlying assets during the lease term. Lease terms generally range from five years to 98 years and may include renewal options that are evaluated for likelihood of exercise. The Company classifies these arrangements as either operating or finance leases in accordance with ASC Topic 842, Leases.


	Minimum Rental Payments
Year Ending December 31,	Operating Leases (a)			Finance Leases (a)
2025 (Remainder)	$	1,305		$	333
2026		5,637			1,350
2027		4,850			1,350
2028		4,646			1,396
2029		4,121			1,415
Thereafter		13,066			155,320
		33,625			161,164
Interest		(6,656	)		(129,233	)
Total	$	26,969		$	31,931

(a)

Minimum rental payments include $6.7 million of interest related to operating leases and $129.2 million related to finance leases. These amounts exclude lease renewal options that are not reasonably certain to be exercised.

The following table summarizes additional lease cost information for the Company’s lessee arrangements (dollars in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Lease Cost
Finance lease cost:
Amortization of right-of-use assets	$	374	$	361	$	1,121	$	964
Interest on lease liabilities		512		511		1,541		1,545
Subtotal		886		872		2,662		2,509
Operating lease cost		1,409		1,306		4,124		3,941
Variable lease cost		38		78		232		222
Total lease cost	$	2,333	$	2,256	$	7,018	$	6,672

Cash Paid
Payments of operating lease obligations - operating activities	$	1,365	$	1,329	$	4,097	$	4,044
Payments of interest on finance lease obligations - operating activities		516		505		1,541		1,539
Payments of finance lease obligations - financing activities		179		1,983		557		2,072


	As of September 30,
	2025			2024
Other Information
Weighted-average remaining lease term - finance leases (years)		56.4			56.9
Weighted-average remaining lease term - operating leases (years)		8.2			9.2
Weighted-average discount rate - finance leases		6.5	%		6.5	%
Weighted-average discount rate - operating leases		5.1	%		5.1	%

During the first quarter of 2025, the Company entered into a new corporate office lease. The Company recognized a $2.1 million right-of-use asset and corresponding lease liability related to the operating lease. The lease term was determined based on the noncancelable period and renewal options that the Company is reasonably certain to exercise. The lease liability was measured using the Company’s incremental borrowing rate at lease commencement.