Leasing Operations (Notes)

6 Months Ended

Jun. 30, 2019

As a commercial real estate lessor, generally our leases are for terms of 10 years or less and may include multiple options, upon tenant election, to extend the lease term in increments up to five years. Our leases typically do not include an option to purchase. Tenant terminations prior to the lease end date occasionally results in a one-time termination fee based on the remaining unpaid lease payments including variable payments and could be material to the tenant. Many of our leases have increasing minimum rental rates during the terms of the leases through escalation provisions. In addition, the majority of our leases provide for variable rental revenues, such as, reimbursements of real estate taxes, maintenance and insurance and may include an amount based on a percentage of the tenants’ sales.

Future undiscounted, lease payments for tenant leases, excluding estimated variable payments, at June 30, 2019 is as follows (in thousands):



2019 remaining	$	176,038
2020	327,898
2021	277,198
2022	221,595
2023	173,512
2024	124,128
Thereafter	405,975
Total payments due	$	1,706,344

Future minimum rental income as defined under ASC No. 840 from tenant leases, excluding estimated contingent rentals, at December 31, 2018 is as follows (in thousands):



2019	$	347,476
2020	305,404
2021	253,269
2022	198,414
2023	151,538
Thereafter	473,416
Total payments due	$	1,729,517

Variable lease payments recognized in Rentals, net are as follows (in thousands):



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Variable lease payments	$	26,175	$	54,105