Quarterly report [Sections 13 or 15(d)]

Leases

v3.25.1
Leases
 3 Months Ended
Mar. 31, 2025
Leases [Abstract]  
Leases
Note 11 – Leases
Lessor
As of March 31, 2025, the Company’s operating leases have non-cancelable lease terms ranging from 0.1 years to 15.8 years. Certain leases with tenants include tenant options to extend or terminate the lease agreements or to purchase the underlying assets. Lease agreements may also contain rent increases that are based on an index or rate (e.g., the consumer price index).
The components of rental revenue from the Company’s operating leases during the periods indicated below were as follows (in thousands):
Three Months Ended March 31,
2025 2024
Fixed:
Cash rental revenue $ 23,642  $ 31,678 
Straight-line rental revenue 3,631  549 
Lease intangible amortization 250  414 
Fixed property operating cost reimbursements 1,509  1,446 
Other fixed rental revenue 703  1,038 
Total fixed 29,735  35,125 
Variable:
Variable property operating cost reimbursements 7,460  11,196 
Other variable rental revenue 602  674 
Total variable 8,062  11,870 
Total rental revenue $ 37,797  $ 46,995 
The following table presents future minimum base rent payments due to the Company under the terms of its operating lease agreements, excluding expense reimbursements, over the next five years and thereafter as of March 31, 2025 (in thousands).
Future Minimum
Base Rent Payments
April 1, 2025 - December 31, 2025
 $ 65,187 
2026 83,276 
2027 69,676 
2028 60,787 
2029 44,090 
2030 42,042 
Thereafter 203,574 
Total $ 568,632 
Lessee
The Company is the lessee under ground lease arrangements and corporate office leases, which meet the criteria under U.S. GAAP for an operating lease. As of March 31, 2025, the Company’s operating leases had remaining lease terms ranging from 0.7 years to 59.8 years, which includes options to extend. Under the operating leases, the Company pays rent and may also pay variable costs, including property operating expenses and common area maintenance. The weighted average discount rate used to measure the lease liability for the Company’s operating leases was 3.69% as of March 31, 2025. As the Company’s leases do not provide an implicit rate, the Company used an estimated incremental borrowing rate based on the information available at the lease commencement date or the lease guidance adoption date, as applicable, in determining the present value of lease payments.
Operating lease costs were $0.3 million for the three months ended March 31, 2025 and 2024. No cash paid for operating lease liabilities was capitalized during the three months ended March 31, 2025 and 2024.
The following table reflects the maturity analysis of payments due from the Company over the next five years and thereafter for ground and corporate office lease obligations as of March 31, 2025 (in thousands).
Future Minimum Lease Payments
April 1, 2025 - December 31, 2025
 $ 888 
2026 778 
2027 752 
2028 761 
2029 473 
2030 447 
Thereafter 11,597 
Total 15,696 
Less: imputed interest 5,450 
Total $ 10,246 
Leases
Note 11 – Leases
Lessor
As of March 31, 2025, the Company’s operating leases have non-cancelable lease terms ranging from 0.1 years to 15.8 years. Certain leases with tenants include tenant options to extend or terminate the lease agreements or to purchase the underlying assets. Lease agreements may also contain rent increases that are based on an index or rate (e.g., the consumer price index).
The components of rental revenue from the Company’s operating leases during the periods indicated below were as follows (in thousands):
Three Months Ended March 31,
2025 2024
Fixed:
Cash rental revenue $ 23,642  $ 31,678 
Straight-line rental revenue 3,631  549 
Lease intangible amortization 250  414 
Fixed property operating cost reimbursements 1,509  1,446 
Other fixed rental revenue 703  1,038 
Total fixed 29,735  35,125 
Variable:
Variable property operating cost reimbursements 7,460  11,196 
Other variable rental revenue 602  674 
Total variable 8,062  11,870 
Total rental revenue $ 37,797  $ 46,995 
The following table presents future minimum base rent payments due to the Company under the terms of its operating lease agreements, excluding expense reimbursements, over the next five years and thereafter as of March 31, 2025 (in thousands).
Future Minimum
Base Rent Payments
April 1, 2025 - December 31, 2025
 $ 65,187 
2026 83,276 
2027 69,676 
2028 60,787 
2029 44,090 
2030 42,042 
Thereafter 203,574 
Total $ 568,632 
Lessee
The Company is the lessee under ground lease arrangements and corporate office leases, which meet the criteria under U.S. GAAP for an operating lease. As of March 31, 2025, the Company’s operating leases had remaining lease terms ranging from 0.7 years to 59.8 years, which includes options to extend. Under the operating leases, the Company pays rent and may also pay variable costs, including property operating expenses and common area maintenance. The weighted average discount rate used to measure the lease liability for the Company’s operating leases was 3.69% as of March 31, 2025. As the Company’s leases do not provide an implicit rate, the Company used an estimated incremental borrowing rate based on the information available at the lease commencement date or the lease guidance adoption date, as applicable, in determining the present value of lease payments.
Operating lease costs were $0.3 million for the three months ended March 31, 2025 and 2024. No cash paid for operating lease liabilities was capitalized during the three months ended March 31, 2025 and 2024.
The following table reflects the maturity analysis of payments due from the Company over the next five years and thereafter for ground and corporate office lease obligations as of March 31, 2025 (in thousands).
Future Minimum Lease Payments
April 1, 2025 - December 31, 2025
 $ 888 
2026 778 
2027 752 
2028 761 
2029 473 
2030 447 
Thereafter 11,597 
Total 15,696 
Less: imputed interest 5,450 
Total $ 10,246