Leasing Operations (Notes)

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leasing Operations

Note 7. Leasing Operations

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.

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

	Three Months Ended
	March 31,
	2020		2019
Variable lease payments	$	26,877	$	27,930