The Company is engaged in the operation of shopping centers and other retail properties that are either owned or, with respect to certain shopping centers, operated under long-term ground leases (see below) that expire at various dates through June 20, 2066, with renewal options. Space in the shopping centers is leased to tenants pursuant to agreements that provide for terms ranging generally from one month to sixty years and generally provide for additional rents based on certain operating expenses as well as tenants’ sales volumes. In addition to the lease-specific collectability assessment, the Company also recognizes a general allowance based on the Company’s historical collection experience, for its portfolio of operating lease receivables which are not expected to be fully collectible. During the six months ended June 30, 2023 and 2022, the Company earned $30.9 million and $30.2 million, respectively in variable lease revenues, primarily for real estate taxes and common area maintenance charges, which are included in rental income in the consolidated statements of operations.

The Company estimates the collectability of its accrued rent and accounts receivable balances related to lease revenue. Management exercises judgment in assessing collectability and considers customer creditworthiness, assessment of risk associated with the tenant, and current economic trends, among other factors. If the Company determines that the accrued rent and/or accounts receivable balances are no longer probable of collection then the balances are written-off and the lease is recognized on a cash basis. During the six months ended June 30, 2023 and 2022, the Company recorded a decrease in its general allowance for credit losses of $1.2 million and an increase of $1.1 million, respectively. As of June 30, 2023 and December 31, 2022, the Company had a general allowance of $4.2 million and $5.4 million, respectively.

During the six months ended June 30, 2023, Fund II received $2.0 million, or $1.1 million at the Company’s share, of proceeds from the Century 21 Department Stores LLC bankruptcy claim. The proceeds are recorded in Other income on the Company’s condensed consolidated financial statements.

During the six months ended June 30, 2023, there were no leasing transactions where the Company acted as lessee.

Additional disclosures regarding the Company’s leases as lessee are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023			2022
Lease Cost
Finance lease cost:
Amortization of right-of-use assets	$	225		225	$	451		$	451
Interest on lease liabilities		108		102		214			202
Subtotal		333		327		665			653
Operating lease cost		1,328		1,295		2,664			2,670
Variable lease cost		73		22		144			42
Total lease cost	$	1,734	$	1,644	$	3,473		$	3,365

Other Information
Weighted-average remaining lease term - finance leases (years)						31.6			32.3
Weighted-average remaining lease term - operating leases (years)						13.3			13.8
Weighted-average discount rate - finance leases						6.3	%		6.3	%
Weighted-average discount rate - operating leases						5.1	%		5.1	%

Right-of-use assets – finance leases are included in Operating real estate (Note 2) in the consolidated balance sheets. Lease liabilities – finance leases are included in Accounts payable and other liabilities in the consolidated balance sheets (Note 5). Operating lease cost comprises amortization of right-of-use assets for operating properties (related to ground rents) or amortization of right-of-use assets for office and corporate assets and is included in Property operating expense or General and administrative expense, respectively, in the consolidated statements of operations. Finance lease cost comprises amortization of right-of-use assets for certain ground leases, which is included in Property operating expense, as well as interest on lease liabilities, which is included in Interest expense in the consolidated statements of operations.

The scheduled future minimum (i) rental revenues from rental properties under the terms of non-cancelable tenant leases greater than one year (assuming no new or renegotiated leases for such premises) and (ii) rental payments under the terms of all non-cancelable operating and finance leases in which the Company is the lessee, principally for office space, land and equipment, as of June 30, 2023, are summarized as follows (in thousands):


			Minimum Rental Payments
Year Ending December 31,	Minimum Rental Revenues (a)		Operating Leases (b)			Finance Leases (b)
2023 (Remainder)	$	115,959	$	2,697		$	—
2024		237,314		5,414			—
2025		211,514		5,329			—
2026		184,926		5,173			—
2027		161,412		4,373			—
Thereafter		668,805		20,067			12,549
		1,579,930		43,053			12,549
Interest		—		(9,608	)		(5,313	)
Total	$	1,579,930	$	33,445		$	7,236

Amount represents contractual lease maturities at June 30, 2023 including any extension options that management determined were reasonably certain of exercise.

Minimum rental payments include $10.0 million of interest related to operating leases and $5.3 million related to finance leases and exclude options or renewals not reasonably certain of exercise.

During the three and six months ended June 30, 2023 and 2022, no single tenant or property collectively comprised more than 10% of the Company’s consolidated total revenues.