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Leases
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Leases
14. Leases

The Company has lease agreements with lease and non-lease components and has elected to aggregate these components into a single component for all classes of underlying assets. Certain of the Company’s lease agreements include non-lease components such as fixed common area maintenance charges.

Lessee Arrangements The Company determines whether an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use assets and Operating lease obligations on the Condensed Consolidated Balance Sheets. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of future minimum lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses an estimate of the incremental borrowing rate based on the information available at the lease commencement date in determining the present value of future lease payments. The Operating lease right-of-use asset also includes any lease payments made, less any lease incentives and initial direct costs incurred. The Company does not have any finance leases.

The Company’s lessee agreements consist of operating leases primarily for ground leases and other real estate. The Company’s leases have remaining lease terms of approximately 2 years to approximately 50 years, excluding extension options. The Company considers its strategic plan and the life of associated agreements in determining when options to extend or terminate lease terms are reasonably certain of being exercised. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Certain of the Company’s lease agreements include variable lease payments based on a percentage of income generated through subleases, changes in price indices and market rates, and other costs arising from operating, maintenance, and taxes. The Company’s lease agreements do not contain residual value guarantees or restrictive covenants. The Company leases certain buildings and office space constructed on its ground leases to third parties. The Company’s operating leases primarily relate to the Seaport ground leases.

The Company’s leased assets and liabilities are as follows:
thousandsJune 30, 2024December 31, 2023
Operating lease right-of-use assets$44,947 $44,897 
Operating lease obligations52,910 51,584 
The components of lease cost are as follows:
Three Months Ended June 30,Six Months Ended June 30,
thousands2024202320242023
Operating lease cost$1,729 $1,709 $3,458 $3,417 
Variable lease cost202 199 865 591 
Total lease cost$1,931 $1,908 $4,323 $4,008 

Future minimum lease payments as of June 30, 2024, are as follows:
thousandsOperating Leases
Remainder of 2024
$2,393 
20255,117 
20264,093 
20273,360 
20283,424 
Thereafter240,646 
Total lease payments259,033 
Less: imputed interest(206,123)
Present value of lease liabilities$52,910 

Other information related to the Company’s lessee agreements is as follows:
Supplemental Condensed Consolidated Statements of Cash Flows InformationSix Months Ended June 30,
thousands20242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows on operating leases$2,664 $2,270 
Other InformationJune 30, 2024June 30, 2023
Weighted-average remaining lease term (years)
Operating leases42.943.8
Weighted-average discount rate
Operating leases7.8 %7.8 %

Lessor Arrangements The Company receives rental income from the leasing of retail, office, multi-family, and other space under operating leases, as well as certain variable tenant recoveries. Operating leases for retail, office, and other properties are with a variety of tenants and have a remaining average term of approximately five years. Lease terms generally vary among tenants and may include early termination options, extension options, and fixed rental rate increases or rental rate increases based on an index. Multi-family leases generally have a term of 12 months or less. Minimum rent revenues related to operating leases are as follows:
Three Months Ended June 30,Six Months Ended June 30,
thousands2024202320242023
Total minimum rent payments$63,072 $58,282 $124,828 $116,079 
Total future minimum rents associated with operating leases are as follows as of June 30, 2024:
thousandsTotal Minimum Rent
Remainder of 2024
$129,123 
2025252,594 
2026239,859 
2027228,846 
2028206,731 
Thereafter877,143 
Total$1,934,296 

Minimum rent revenues are recognized on a straight‑line basis over the terms of the related leases when collectability is reasonably assured and the tenant has taken possession of, or controls, the physical use of the leased asset. Percentage rent in lieu of fixed minimum rent is recognized as sales are reported from tenants. Minimum rent revenues reported on the Condensed Consolidated Statements of Operations also include amortization related to above-market and below‑market tenant leases on acquired properties.