Leases

6 Months Ended

Jun. 30, 2021

7. LEASES

As Lessee

We have entered into ground leases for portions of the land at Springfield Town Center and Plymouth Meeting Mall. We have also entered into an office lease for our headquarters location, as well as vehicle, solar panel and equipment leases as a lessee. The initial terms of these agreements generally range from three to 40 years, with certain agreements containing extension options for up to an additional 60 years. Upon lease execution, the Company measures a liability for the present value of future lease payments over the noncancelable period of the lease and any renewal option period we are reasonably certain of exercising. Certain agreements require that we pay a portion of reimbursable expenses such as CAM, utilities, insurance and real estate taxes. These payments are not included in the calculation of the lease liability and are presented as variable lease costs.

Our leases do not provide a readily determinable implicit interest rate; therefore, we estimate our incremental borrowing rate to calculate the present value of remaining lease payments. In determining our incremental borrowing rate, we considered the lease term, market interest rates and estimates regarding our implied credit rating using market data with adjustments to determine an appropriate incremental borrowing rate.

The following tables present additional information pertaining to the Company’s leases:

	Three Months Ended June 30,
	2021								2020
(in thousands of dollars)	Solar Panel Leases		Ground Leases		Office, equipment, and vehicle leases		Total		Solar Panel Leases		Ground Leases		Office, equipment, and vehicle leases		Total
Finance lease cost:
Amortization of right-of-use assets	$	203	$	—	$	—	$	203	$	208	$	—	$	—	$	208
Interest on lease liabilities		62		—		—		62		68		—		—		68
Operating lease costs		—		437		327		764		—		437		333		770
Variable lease costs		—		45		107		152		—		42		39		81
Total lease costs	$	265	$	482	$	434	$	1,181	$	276	$	479	$	372	$	1,127

	Six Months Ended June 30,
	2021								2020
(in thousands of dollars)	Solar Panel Leases		Ground Leases		Office, equipment, and vehicle leases		Total		Solar Panel Leases		Ground Leases		Office, equipment, and vehicle leases		Total
Finance lease cost:
Amortization of right-of-use assets	$	405	$	—	$	—	$	405	$	412	$	—	$	—	$	412
Interest on lease liabilities		125		—		—		125		147		—		—		147
Operating lease costs		—		873		638		1,511		—		873		675		1,548
Variable lease costs		—		90		170		260		—		85		82		167
Total lease costs	$	530	$	963	$	808	$	2,301	$	559	$	958	$	757	$	2,274

Other information related to leases as of and for the six months ended June 30, 2021 and 2020 are as follows:

(in thousands of dollars)	2021			2020
Cash paid for the amounts included in the measurement of lease liabilities
Operating cash flows used for finance leases	$	125		$	139
Operating cash flows used for operating leases	$	1,290		$	972
Financing cash flows used for finance leases	$	372		$	347
Weighted average remaining lease term-finance leases (months)		80			92
Weighted average remaining lease term-operating leases (months)		293			304
Weighted average discount rate-finance leases		4.35	%		4.37	%
Weighted average discount rate-operating leases		6.43	%		6.43	%

Future payments against lease liabilities as of June 30, 2021 are as follows:

(in thousands of dollars)	Finance leases			Operating leases			Total
July 1 to December 31, 2021	$	494		$	1,494		$	1,988
2022		988			2,605			3,593
2023		983			2,556			3,539
2024		949			2,471			3,420
2025		929			2,362			3,291
Thereafter		2,072			51,153			53,225
Total undiscounted lease payments		6,415			62,641			69,056
Less imputed interest		(858	)		(32,590	)		(33,448	)
Total lease liabilities	$	5,557		$	30,051		$	35,608

As Lessor

As of June 30, 2021, the fixed contractual lease payments, including minimum rents and fixed CAM amounts, to be received over the next five years pursuant to the terms of noncancelable operating leases with initial terms greater than one year are included in the table below. The amounts presented assume that no leases are renewed and no renewal options are exercised. Additionally, the table does not include variable lease payments that may be received under certain leases for percentage rents or the reimbursement of operating costs, such as common area expenses, utilities, insurance and real estate taxes. These variable lease payments are recognized in the period when the applicable expenditures are incurred or, in the case of percentage rents, when the sales data is made available.

(in thousands of dollars)
July 1 to December 31, 2021	$	96,350
2022		179,391
2023		158,933
2024		135,936
2025		108,510
Thereafter		313,232
	$	992,352