The Company is engaged in the operation of shopping centers that are either owned or, with respect to certain shopping centers, operated under long-term ground leases that expire at various dates through 2070. The Company also leases office space in the ordinary course of business under lease agreements that expire at various dates through 2029. Certain of the lease agreements include variable payments for reimbursement of common area expenses. The Company determines if an arrangement is a lease at inception.

ROU 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 ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not include an implicit rate, the Company used its incremental borrowing rate based on the information available at the commencement date of the standard in determining the present value of lease payments. For each lease, the Company utilized a market-based approach to estimate the incremental borrowing rate (“IBRs”), which required significant judgment. The Company estimated base IBRs based on an analysis of (i) yields on the Company’s outstanding public debt, as well as comparable companies, (ii) observable mortgage rates and (iii) unlevered property yields and discount rates. The Company applied adjustments to the base IBRs to account for full collateralization and lease term. Operating lease ROU assets also include any lease payments made. The Company has options to extend certain of the ground and office leases; however, these options were not considered as part of the lease term when calculating the lease liability, as they were not reasonably certain to be exercised. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Operating lease ROU assets are in the Company’s consolidated balance sheet as follows (in thousands):

	Classification	March 31, 2019
Operating Lease ROU Assets	Other Assets, Net	$	21,962

Operating Lease Liabilities	Accounts Payable and Other Liabilities	$	40,303

Operating lease expenses are included in Operating and Maintenance Expense for the Company’s ground leases and General and Administrative for its office leases as follows:

Classification	Three Months Ended March 31, 2019
Operating and Maintenance	$	1,018
General and Administrative^(A)		712
Total lease costs	$	1,730

(A)	Includes short-term leases and variable lease costs, which are immaterial.


	March 31, 2019
Weighted Average Remaining Lease Term	36.2 years
Weighted Average Discount Rate		7.33	%
Cash paid for amounts included in the measurement — operating cash flows from lease liabilities (in thousands)	$	669

As determined under FASB Accounting Standards Codification (“ASC”) 840, Leases, the scheduled future minimum rental revenues from rental properties under the terms of all non-cancelable tenant leases, assuming no new or renegotiated leases or option extensions for such premises and the scheduled minimum rental payments under the terms of all non-cancelable operating leases, principally ground leases, in which the Company is the lessee as of December 31, 2018, are as follows (in thousands):

Year	Minimum Rental Revenues		Minimum Rental Payments
2019	$	306,740	$	3,253
2020		279,374		4,070
2021		243,379		4,080
2022		202,371		3,928
2023		150,909		3,417
Thereafter		417,296		120,825
	$	1,600,069	$	139,573

As determined under Topic 842, maturities of lease liabilities were as follows for the years ended March 31, (in thousands):

Year	March 31,
2020	$	3,601
2021		4,072
2022		4,083
2023		3,744
2024		3,440
Thereafter		119,953
Total lease payments		138,893
Less imputed interest		(98,590	)
Total	$	40,303

Space in the shopping centers is leased to tenants pursuant to agreements that provide for terms generally ranging from one month to 30 years and for rents which, in some cases, are subject to upward adjustments based on operating expense levels, sales volume or contractual increases as defined in the lease agreements.

The scheduled future minimum rental income from rental properties under the terms of all non-cancelable tenant leases, assuming no new or renegotiated leases or option extensions as determined under Topic 842 for such premises for the years ending March 31, were as follows (in thousands):

Year Ending	March 31,
2020	$	309,546
2021		280,371
2022		242,764
2023		197,093
2024		146,434
Thereafter		425,980
Total	$	1,602,188