Wheeler Real Estate Investment Trust, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Lease Commitments Lease Commitments

Lease Commitments Lease Commitments

9 Months Ended

Sep. 30, 2019

Leases Commitments

The Company has ground leases that are accounted for as operating leases. The Charleston, SC lease ended August 31, 2019 and was accounted for as an operating lease. Most leases include one or more options to renew, with renewal terms that can extend the lease term from 5 to 50 years. As of September 30, 2019, the weighted average remaining lease term of our leases is 35 years. The following properties are subject to leases which require the Company to make fixed annual rental payments and variable lease payments, which are immaterial and include escalation clauses and renewal options as follows (unaudited, in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018		Expiration Year
Amscot	$	7	$	5	$	19	$	14	2045
Beaver Ruin Village	14		11		41		34		2054
Beaver Ruin Village II	6		5		17		15		2056
Leased office space Charleston, SC	17		25		67		75		2019
Moncks Corner	30		30		91		91		2040
Devine Street	99		63		297		188		2051	⁽¹⁾
JANAF ⁽²⁾	65		65		200		191		2069
Total ground leases	$	238	$	204	$	732	$	608

(1) Lease options are exercised through 2035 with options which are reasonably certain to be exercised through 2051.

(2) Includes $29 thousand and $90 thousand in variable percentage rent, during the three and nine months ended September 30, 2019, respectively. Includes $29 thousand and $82 thousand in variable percentage rent, during the three and nine months ended September 30, 2018, respectively.

Supplemental information related to leases is as follows (in thousands, unaudited):



	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	161	$	500
Leased assets obtained in exchange for new operating lease liabilities	$	—	$	11,904

Undiscounted cash flows of our scheduled obligations for future minimum lease payments due under the operating leases, including applicable automatic extension options and options reasonably certain of being exercised, as of September 30, 2019 and a reconciliation of those cash flows to the operating lease liabilities at September 30, 2019 are as follows (in thousands, unaudited):



For the remaining three months ended December 31, 2019	$	144
December 31, 2020	583
December 31, 2021	637
December 31, 2022	640
December 31, 2023	642
December 31, 2024	644
Thereafter	23,109
Total minimum lease payments ⁽¹⁾	26,399
Discount	(14,478		)
Operating lease liabilities	$	11,921

(1) Operating lease payments include $7.54 million related to options to extend lease terms that are reasonably certain of being exercised.