SAUL CENTERS INC | 2012 | FY | 3


6. LEASE AGREEMENTS

Lease income includes primarily base rent arising from noncancelable leases. Base rent (including straight-line rent) for the years ended December 31, 2012, 2011, and 2010, amounted to $152.8 million, $138.4 million, and $126.2 million, respectively. Future contractual payments under noncancelable leases for years ended December 31 (which exclude the effect of straight-line rents), are as follows:

 

(in thousands)       

2013

   $ 146,293   

2014

     123,137   

2015

     104,558   

2016

     87,335   

2017

     70,306   

Thereafter

     310,790   
  

 

 

 
   $ 842,419   
  

 

 

 

The majority of the leases provide for rental increases and expense recoveries based on fixed annual increases or increases in the Consumer Price Index and increases in operating expenses. The expense recoveries generally are payable in equal installments throughout the year based on estimates, with adjustments made in the succeeding year. Expense recoveries for the years ended December 31, 2012, 2011, and 2010, amounted to $30.4 million, $28.4 million, and $29.5 million, respectively. In addition, certain retail leases provide for percentage rent based on sales in excess of the minimum specified in the tenant’s lease. Percentage rent amounted to $1.5 million, $1.5 million, and $1.5 million, for the years ended December 31, 2012, 2011, and 2010, respectively.


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