Quarterly report [Sections 13 or 15(d)]

Leases

v3.25.3
Leases
 9 Months Ended
Sep. 30, 2025
Leases [Abstract]  
Leases
Note 11 – Leases
Lessor
As of September 30, 2025, the Company’s operating leases have non-cancelable lease terms ranging from 0.3 months 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 September 30, Nine Months Ended September 30,
2025 2024 2025 2024
Fixed:
Cash rental revenue $ 21,469  $ 29,148  $ 68,001  $ 91,132 
Straight-line rental revenue 4,898  (1,283) 11,048  (974)
Lease intangible amortization 137  (68) 593  651 
Fixed property operating cost reimbursements 1,526  1,531  4,554  4,422 
Other fixed rental revenue 432  90  1,927  1,128 
Total fixed 28,462  29,418  86,123  96,359 
Variable:
Variable property operating cost reimbursements 7,889  8,786  23,929  27,451 
Other variable rental revenue 567  772  1,765  2,084 
Total variable 8,456  9,558  25,694  29,535 
Total rental revenue $ 36,918  $ 38,976  $ 111,817  $ 125,894 
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 September 30, 2025 (in thousands).
Future Minimum
Base Rent Payments
October 1, 2025 - December 31, 2025
 $ 20,061 
2026 85,350 
2027 77,404 
2028 69,204 
2029 53,167 
2030 51,173 
Thereafter 261,211 
Total $ 617,570 
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 September 30, 2025, the Company’s operating leases had remaining lease terms ranging from 0.2 years to 59.3 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 3.61% as of September 30, 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 September 30, 2025 and 2024, and $0.9 million for the nine months ended September 30, 2025 and 2024. No cash paid for operating lease liabilities was capitalized during the three and nine months ended September 30, 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 September 30, 2025 (in thousands).
Future Minimum Lease Payments
October 1, 2025 - December 31, 2025
 $ 295 
2026 778 
2027 752 
2028 761 
2029 473 
2030 447 
Thereafter 11,597 
Total 15,103 
Less: imputed interest 5,261 
Total $ 9,842 
Leases
Note 11 – Leases
Lessor
As of September 30, 2025, the Company’s operating leases have non-cancelable lease terms ranging from 0.3 months 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 September 30, Nine Months Ended September 30,
2025 2024 2025 2024
Fixed:
Cash rental revenue $ 21,469  $ 29,148  $ 68,001  $ 91,132 
Straight-line rental revenue 4,898  (1,283) 11,048  (974)
Lease intangible amortization 137  (68) 593  651 
Fixed property operating cost reimbursements 1,526  1,531  4,554  4,422 
Other fixed rental revenue 432  90  1,927  1,128 
Total fixed 28,462  29,418  86,123  96,359 
Variable:
Variable property operating cost reimbursements 7,889  8,786  23,929  27,451 
Other variable rental revenue 567  772  1,765  2,084 
Total variable 8,456  9,558  25,694  29,535 
Total rental revenue $ 36,918  $ 38,976  $ 111,817  $ 125,894 
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 September 30, 2025 (in thousands).
Future Minimum
Base Rent Payments
October 1, 2025 - December 31, 2025
 $ 20,061 
2026 85,350 
2027 77,404 
2028 69,204 
2029 53,167 
2030 51,173 
Thereafter 261,211 
Total $ 617,570 
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 September 30, 2025, the Company’s operating leases had remaining lease terms ranging from 0.2 years to 59.3 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 3.61% as of September 30, 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 September 30, 2025 and 2024, and $0.9 million for the nine months ended September 30, 2025 and 2024. No cash paid for operating lease liabilities was capitalized during the three and nine months ended September 30, 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 September 30, 2025 (in thousands).
Future Minimum Lease Payments
October 1, 2025 - December 31, 2025
 $ 295 
2026 778 
2027 752 
2028 761 
2029 473 
2030 447 
Thereafter 11,597 
Total 15,103 
Less: imputed interest 5,261 
Total $ 9,842