XML 25 R15.htm IDEA: XBRL DOCUMENT v3.22.2
Revenues
6 Months Ended
Jun. 30, 2022
Revenues [Abstract]  
Revenues

 

Note 8. Revenues

Rental revenues for the three and six months ended June 30, 2022 and 2021, respectively, comprise the following:

 

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Base rents

 

$

5,878,000

 

 

$

7,686,000

 

 

$

11,796,000

 

 

$

15,493,000

 

Expense recoveries

 

 

2,201,000

 

 

 

2,476,000

 

 

 

4,143,000

 

 

 

5,094,000

 

Percentage rent

 

 

146,000

 

 

 

122,000

 

 

 

269,000

 

 

 

363,000

 

Straight-line rents

 

 

(19,000

)

 

 

159,000

 

 

 

(87,000

)

 

 

171,000

 

Amortization of intangible lease liabilities, net

 

 

161,000

 

 

 

160,000

 

 

 

322,000

 

 

 

324,000

 

Total rents

 

$

8,367,000

 

 

$

10,603,000

 

 

$

16,443,000

 

 

$

21,445,000

 

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 2022 and 2021, 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. 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 $0.0 million and $0.0 million for the three and six months ended June 30, 2022, respectively. In addition, during the three and six months ended June 30, 2022, respectively, $0.4 million and $0.8 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, these amounts were not recorded as revenue for the three and six months ended June 30, 2022.