We have approximately 1,100 operating leases at our retail shopping centers and malls which generate rental income from tenants and operating cash flows for the Company. Our tenant base comprises a diverse group of merchants including department stores, grocers, discounters, entertainment offerings, health clubs, DIY stores, in-line specialty shops, restaurants and other food and beverage vendors and service providers. Tenant leases under 10,000 sf generally have lease terms of 5 years or less. Tenant leases 10,000 sf or more are considered anchor leases and generally have lease terms of 10 to 25 years, with one or more renewal options available upon expiration of the initial lease term. Contractual rent increases for the renewal options are often fixed at the time of the initial lease agreement which may result in tenants being able to exercise their renewal options at amounts that are less than the fair value of the rent at the date of renewal.


	Year Ended December 31,
(Amounts in thousands)	2025		2024		2023
Rental Revenue
Fixed lease revenue	$	347,762	$	329,555	$	304,050
Variable lease revenue(1)	122,927		114,910		102,062
Total rental revenue	$	470,689	$	444,465	$	406,112

The Company’s operating leases, including those with revenue recognized on a cash basis, are disclosed in the aggregate due to their consistent nature as real estate leases. As of December 31, 2025, the undiscounted cash flows to be received from lease payments of our operating leases on an annual basis for the next five years and thereafter are as follows:

As of December 31, 2025, the Company had 19 properties in its portfolio either completely or partially on land or in a building owned by third parties. These properties are leased or subleased to us pursuant to ground leases, building leases or easements, with remaining terms ranging from one to 74 years and provide us the right to operate the property. We also lease real estate for one of our corporate offices with a remaining term of three years.


	Year Ended December 31,
(Amounts in thousands)	2025		2024		2023
Lease expense
Operating lease cost(1)	$	9,990	$	10,239	$	9,732
Variable lease cost	3,178		2,930		2,902
Total lease expense	$	13,168	$	13,169	$	12,634

(1) During the years ended December 31, 2025, 2024, and 2023 the Company recognized sublease income of $21.0 million, $20.4 million and $18.7 million, respectively, included in rental revenue on the consolidated statements of income and comprehensive income in relation to certain ground and building lease arrangements. Operating lease cost includes amortization of below-market ground lease intangibles and straight-line lease expense.

December 31, 2025

December 31, 2024

Supplemental noncash information

Operating leases

Finance lease

Operating leases

Finance lease

Weighted-average remaining lease term

10.9 years

30.2 years

11.4 years

31.2 years

Weighted-average discount rates

4.36

4.01

4.38

4.01


(Amounts in thousands)	Year Ended December 31,
Cash paid for amounts included in the measurement of lease liabilities:	2025		2024
Operating cash flows from operating leases	$	9,667	$	10,016
Operating cash flows from finance lease	122		122
Financing cash flows from finance lease	13		13

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	—	$	15,837

The undiscounted cash flows to be paid on an annual basis for the next five years and thereafter are presented in the table below. The total amount of lease payments, on an undiscounted basis, are reconciled to the lease liability included within accounts payable, accrued expenses and other liabilities on the consolidated balance sheets by considering the present value discount.


(Amounts in thousands)	Operating		Finance
Year Ending December 31,	leases		lease
2026	$	8,307	$	124
2027	8,045		127
2028	7,864		127
2029	6,020		127
2030	6,262		127
Thereafter	29,946		5,791
Total undiscounted cash flows	66,444		6,423
Present value discount	(10,115)		(3,369)
Discounted cash flows	$	56,329	$	3,054