Simon Property Group, Inc. Simon Property Group, L.P. Notes to Consolidated Financial Statements (Dollars in thousands, except share, per share, unit and per unit amounts and where indicated as in millions or billions)
and the amount can be reasonably estimated.
Lease Commitments As of December 31, 2022, we are subject to ground leases that cover all or a portion of 23 of our consolidated properties with termination dates extending through 2090, including periods for which exercising an extension option is reasonably assured. These ground leases generally require us to make fixed annual rental payments, or a fixed annual rental payment plus a percentage rent component based upon the revenues or total sales of the property. In addition, we have several regional office locations that are subject to leases with termination dates ranging from 2023 to 2025. These office leases generally require us to make fixed annual rental payments plus pay our share of common area, real estate, and utility expenses. Some of our ground and office leases include escalation clauses. All of our lease arrangements are classified as operating leases. We incurred ground lease expense and office lease expense, which are included in other expense and home office and regional expense, respectively, as follows: For the Year Ended December 31, 2022 2021 2020 Operating Lease Cost Fixedleasecost............................................. $ 30,257 $ 32,492 $ 31,404 Variable lease cost .......................................... 17,593 15,454 13,270 Subleaseincome............................................ — (705) (746) Total operating lease cost ................................... $ 47,850 $ 47,241 $ 43,928
For the Year Ended December 31,
2022
2021
2020
Other Information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases . . . . . . . . . . . . . . . . . . . . $ 47,754 $ 47,824 $ 44,570 Weighted-average remaining lease term - operating leases. . . . . . . . . . Weighted-average discount rate - operating leases ................ 4.86% Future minimum lease payments due under these leases for years ending December 31, excluding applicable extension options and renewal options unless reasonably certain of exercise and any sublease income, are as follows: 2023 ........................................................... $ 33,163 2024 ........................................................... 30,716 2025 ........................................................... 30,727 2026 ........................................................... 30,740 2027 ........................................................... 30,770 Thereafter....................................................... 828,521 $ 984,637 Impactofdiscounting.............................................. (486,684) Operatingleaseliabilities........................................... $ 497,953 32.7 years 33.6 years 34.4 years 4.87% 4.87%
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