LEASES

6 Months Ended

Jun. 30, 2022

Operating Leases, Future Minimum Payments Receivable [Abstract]

FUTURE MINIMUM RENTAL INCOME

4. LEASES

Operating Leases

The Company’s real estate properties are leased to tenants under operating leases for which the terms and expirations vary. As of June 30, 2022, the leases at the Company’s properties, excluding properties classified as held for sale, have remaining terms (excluding options to extend) of up to 9.9 years with a weighted-average remaining term (excluding options to extend) of approximately 6.2 years. The leases may have provisions to extend the lease agreements, options for early termination after paying a specified penalty, rights of first refusal to purchase the property at competitive market rates, and other terms and conditions as negotiated. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. Generally, upon the execution of a lease, the Company requires security deposits from tenants in the form of a cash deposit and/or a letter of credit. Amounts required as security deposits vary depending upon the terms of the respective leases and the creditworthiness of the tenant, but generally are not significant amounts. Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of its security deposit. Security deposits received in cash related to tenant leases are included in other liabilities in the accompanying condensed consolidated balance sheets and totaled approximately $0.1 million as of June 30, 2022 and December 31, 2021, respectively.

The following table presents the components of income from real estate operations for the three and six months ended June 30, 2022 and 2021 (amounts in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Lease income - operating leases	$	480	$	463	$	1,057	$	1,057
Variable lease income (1)	241		175		398		296
Rental and reimbursements income	$	721	$	638	$	1,455	$	1,353

(1)Primarily includes tenant reimbursements for real estate taxes, insurance, consideration based on sales, common area maintenance, utilities, marketing, and certain other items including negative variable lease income.

As of June 30, 2022, the future minimum rental income from the Company’s properties under non-cancelable operating leases, excluding the property classified as held for sale, was as follows (amounts in thousands):

Remainder 2022	$	905
2023	1,833
2024	1,863
2025	1,757
2026	1,468
Thereafter	5,840
Total	$	13,666