Rental Income and Future Minimum Rent

6 Months Ended

Jun. 30, 2023

Our rental income is primarily comprised of payments defined under leases and are subject to scheduled fixed increases. Additionally, rental income includes variable payments for tenant reimbursements of property-related expenses and payments based on a percentage of tenant’s sales.

The table below sets forth the allocation of rental income between fixed and variable payments and net collectability reversals or recoveries for the three and six months ended June 30, 2023 and 2022:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in thousands)
Fixed lease payments	$	235,329	$	229,233	$	481,164	$	454,050
Variable lease payments	46,832		39,141		93,539		76,221
Net collectability (reversals) recoveries (1)	(852)		202		(3,290)		1,513
Total rental income	$	281,309	$	268,576	$	571,413	$	531,784

_____________________

(1)Represents adjustments to rental income related to our assessment of the collectability of amounts due under leases with our tenants, including recognition of deferred rent balances associated with tenants restored from a cash basis of revenue recognition to an accrual basis of revenue recognition and allowances for uncollectible receivables and leases deemed not probable of collection.

We have operating leases with tenants that expire at various dates through 2048 and are subject to scheduled fixed increases. Generally, the leases grant tenants renewal options. Leases also provide for additional rents based on certain operating expenses. Future contractual minimum rent under operating leases, which includes amounts contractually due from leases that are on a cash basis of reporting due to creditworthiness considerations, as of June 30, 2023 for future periods is summarized as follows:


Year Ending	(in thousands)
Remaining 2023	$	404,358
2024	803,175
2025	788,631
2026	736,898
2027	672,448
2028	627,451
Thereafter	1,895,858
Total (1)	$	5,928,819

_____________________

(1)Excludes residential leases and leases with a term of one year or less.