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Revenues (Tables)
6 Months Ended
Jun. 30, 2020
Revenues [Abstract]  
Schedule of Rental Revenues

Rental revenues for the three and six months ended June 30, 2020 and 2019, respectively, comprise the following:

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Base rents

 

$

22,781,000

 

 

$

26,352,000

 

 

$

48,543,000

 

 

$

52,753,000

 

Expense recoveries

 

 

6,328,000

 

 

 

7,950,000

 

 

 

14,883,000

 

 

 

17,144,000

 

Percentage rent

 

 

33,000

 

 

 

265,000

 

 

 

329,000

 

 

 

447,000

 

Straight-line rents

 

 

(988,000

)

 

 

111,000

 

 

 

(945,000

)

 

 

335,000

 

Amortization of intangible lease liabilities, net

 

 

307,000

 

 

 

631,000

 

 

 

766,000

 

 

 

1,222,000

 

Total rents

 

$

28,461,000

 

 

$

35,309,000

 

 

$

63,576,000

 

 

$

71,901,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Company reviews the collectability of charges under its tenant operating leases on a regular basis, taking into consideration changes in factors such as the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area where the property is located. During 2020, the Company’s assessment has specifically included the impact of the COVID-19 pandemic, which represents a material risk to collectability. In the event that collectability with respect to any tenant changes the Company recognizes an adjustment to rental income. The Company’s review of collectability of charges under its operating leases includes any accrued rental revenues related to the straight-line method of reporting rental revenue. During the quarter ended June 30, 2020, the Company identified various tenants where collection was no longer considered probable. The determination to record revenue on a cash basis and write off any outstanding straight-line receivable from these various tenants reduced net income $1.2 million and $1.2 million for the three and six months ended June 30, 2020, respectively. In addition, during the three months ended June 30, 2020, $4.0 million of billed charges, consisting of rent and tenant reimbursements, were unpaid, and based on the Company’s determination to record revenue on a cash basis for these tenants, the $4.0 million was not recorded as revenue for the three months ended June 30, 2020.