DEFERRED RENTS RECEIVABLE
|3 Months Ended|
Mar. 31, 2022
|Deferred Rents Receivable|
|DEFERRED RENTS RECEIVABLE||
NOTE 5 – DEFERRED RENTS RECEIVABLE
The Company is the lessor under operating leases which contain escalating rents over time, rent holidays, options to renew, requirements to pay property taxes, insurance and/or maintenance costs, and contingent rental payments based on a percentage of monthly tenant revenues. The Company is not the lessor under any finance leases.
The Company recognizes fixed rental receipts from such lease agreements on a straight-line basis over the expected lease term. Differences between amounts received and amounts recognized are recorded under Deferred Rents Receivable on the balance sheet. Contingent rentals are recognized only after tenants’ revenues are finalized and if such revenues exceed certain minimum levels.
The Company leases the following owned properties:
The Company subleases the following properties:
At March 31, 2022 and December 31, 2021, cumulative fixed rental receipts under such leases approximated $19.9 million and $18.7 million, respectively, compared to revenue recognized on a straight-line basis of approximately $21.5 million and $20.4 million, respectively. Accordingly, the deferred rents receivable balance approximated $1.6 million and $1.7 million at March 31, 2022 and December 31, 2021, respectively.
Future minimum rental receipts for non-cancellable leases and subleases as of March 31, 2022 were (in thousands):
SCHEDULE OF FUTURE MINIMUM RENTAL RECEIPTS FOR NON CANCELABLE LEASE AND SUBLEASE