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Revenue Recognition | 9 Months Ended
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Sep. 30, 2020
Revenue From Contract With Customer [Abstract] |
Revenue Recognition |
2. | Revenue Recognition
Impact of the COVID-19 Pandemic on Revenue and Receivables Beginning in March 2020, the retail sector within the continental U.S. has been significantly impacted by the COVID-19 pandemic. Though the impact of the COVID-19 pandemic on tenant operations has varied by tenant category, local conditions and applicable government mandates, a significant number of the Company’s tenants have experienced a reduction in sales and foot traffic, and many tenants were forced to limit their operations or close their businesses for a period of time. As of October 23, 2020, approximately 98% of the Company’s tenants (at the Company’s share and based on average base rents) were open for business, up from a low of approximately 45% in early April 2020 and 92% as of July 24, 2020. The COVID-19 pandemic had a relatively minimal impact on the Company’s collection of rents for the first quarter of 2020, but it had a significant impact on collection of second and third quarter rents. As of October 23, 2020, the Company’s tenants had paid approximately 70% of aggregate base rents for the second quarter (at the Company’s share) and approximately 84% of aggregate base rents for the third quarter (at the Company’s share). For purposes of reporting the percentage of aggregate base rents collected for a given period, when rents subject to deferral arrangements are later paid, those payments are allocated to the period in which the rent was originally owing. The Company has engaged in discussions with most of its larger tenants that failed to satisfy all or a portion of their rent obligations during the second and third quarters of 2020 and has agreed to terms on rent-deferral arrangements (and, in a small number of cases, rent abatements) and other lease modifications with a number of such tenants. The Company had net contractual tenant accounts receivable of $24.9 million at September 30, 2020. The Company’s pro rata share of unconsolidated joint ventures’ contractual accounts receivable was $1.4 million at September 30, 2020. As of October 23, 2020, unpaid tenant rents subject to agreed deferral or lease modifications arrangements represented approximately 16% of aggregate base rents for the second quarter of 2020 and approximately 8% of the aggregate base rents for the third quarter of 2020 at the Company’s share (BRE DDR IV assets at 100% ownership). The Company calculates the aggregate percentage of rents paid by comparing the amount of tenant payments received as of the date presented to the amount billed to tenants during the period, which billed amount includes abated rents, rents subject to deferral arrangements and rents owing from bankrupt tenants with respect to leases which have not yet been rejected. The Company continues to evaluate its options with respect to tenants with which the Company has not reached satisfactory resolution of unpaid rents and has commenced collections actions against several tenants. For those tenants where the Company is unable to assert that collection of amounts due over the lease term is probable, regardless if the Company has entered into a deferral agreement to extend the payment terms, the Company has categorized these tenants on the cash basis of accounting. As a result, no rental income is recognized from such tenants once they have been placed on the cash basis of accounting until payments are received and all existing accounts receivable relating to these tenants have been reserved in full, including straight-line rental income. The Company will remove the cash basis designation and resume recording rental income from such tenants during the period earned at such time it believes collection from the tenants is probable based upon a demonstrated payment history or recapitalization event. During the three and nine months ended September 30, 2020, tenants on the cash basis of accounting and other related reserves resulted in a reduction of rental income of $12.3 million and $25.1 million, respectively (the Company’s share of unconsolidated joint ventures was $1.5 million and $3.3 million, respectively). These amounts also include reductions in contractual rental payments due from tenants as compared to pre-modification payments due to the impact of lease modifications, with a partial increase in straight-line rent to offset a portion of the impact on net income. The Company’s share of lease modification adjustments for unconsolidated joint ventures was not material. The aggregate amount of uncollectible revenue reported during the quarter primarily was due to the impact of the COVID-19 pandemic. Fee and Other Income Fee and Other Income on the consolidated statements of operations includes revenue from contracts with customers and other property-related income, primarily composed of theater income, and is recognized in the period earned as follows (in thousands):
| Three Months |  |  | Nine Months |
| Ended September 30, |  |  | Ended September 30, |
| 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Revenue from contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asset and property management fees | $ | 7,326 |  |  | $ | 9,751 |  |  | $ | 24,201 |  |  | $ | 32,392 |
Leasing commissions |  | 648 |  |  |  | 1,036 |  |  |  | 4,327 |  |  |  | 3,916 |
Development fees |  | 210 |  |  |  | 552 |  |  |  | 1,256 |  |  |  | 1,497 |
Disposition fees |  | 856 |  |  |  | 546 |  |  |  | 2,622 |  |  |  | 3,263 |
Credit facility guaranty and refinancing fees |  | 60 |  |  |  | 60 |  |  |  | 60 |  |  |  | 1,860 |
Total revenue from contracts with customers |  | 9,100 |  |  |  | 11,945 |  |  |  | 32,466 |  |  |  | 42,928 |
Other property income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other |  | 580 |  |  |  | 1,635 |  |  |  | 3,487 |  |  |  | 5,836 |
Total fee and other income | $ | 9,680 |  |  | $ | 13,580 |  |  | $ | 35,953 |  |  | $ | 48,764 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 + Details
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