Quarterly report pursuant to Section 13 or 15(d)

Leases

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Leases
 3 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Leases
Note 11 – Leases
Lessor
As of March 31, 2024, the Company’s operating leases have non-cancelable lease terms ranging from 0.2 years to 15.1 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,
2024 2023
Fixed:
Cash rental revenue $ 31,678  $ 36,104 
Straight-line rental revenue 549  2,684 
Lease intangible amortization 414  114 
Fixed property operating cost reimbursements 1,446  1,384 
Other fixed rental revenue 1,038  150 
Total fixed 35,125  40,436 
Variable:
Variable property operating cost reimbursements 11,196  8,482 
Other variable rental revenue 674  1,072 
Total variable 11,870  9,554 
Total rental revenue $ 46,995  $ 49,990 
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, 2024 (in thousands).
Future Minimum
Base Rent Payments
April 1, 2024 - December 31, 2024
 $ 81,093 
2025 77,612 
2026 74,207 
2027 54,027 
2028 42,697 
2029 32,422 
Thereafter 140,636 
Total $ 502,694 
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, 2024, the Company’s operating leases had remaining lease terms ranging from 1.7 years to 60.8 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 3.83% as of March 31, 2024. 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, 2024 and 2023. No cash paid for operating lease liabilities was capitalized for the three months ended March 31, 2024 and 2023.
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, 2024 (in thousands).
Future Minimum Lease Payments
April 1, 2024 - December 31, 2024
 $ 876 
2025 1,184 
2026 778 
2027 752 
2028 761 
2029 473 
Thereafter 12,044 
Total 16,868 
Less: imputed interest 5,866 
Total $ 11,002 
Leases
Note 11 – Leases
Lessor
As of March 31, 2024, the Company’s operating leases have non-cancelable lease terms ranging from 0.2 years to 15.1 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,
2024 2023
Fixed:
Cash rental revenue $ 31,678  $ 36,104 
Straight-line rental revenue 549  2,684 
Lease intangible amortization 414  114 
Fixed property operating cost reimbursements 1,446  1,384 
Other fixed rental revenue 1,038  150 
Total fixed 35,125  40,436 
Variable:
Variable property operating cost reimbursements 11,196  8,482 
Other variable rental revenue 674  1,072 
Total variable 11,870  9,554 
Total rental revenue $ 46,995  $ 49,990 
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, 2024 (in thousands).
Future Minimum
Base Rent Payments
April 1, 2024 - December 31, 2024
 $ 81,093 
2025 77,612 
2026 74,207 
2027 54,027 
2028 42,697 
2029 32,422 
Thereafter 140,636 
Total $ 502,694 
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, 2024, the Company’s operating leases had remaining lease terms ranging from 1.7 years to 60.8 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 3.83% as of March 31, 2024. 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, 2024 and 2023. No cash paid for operating lease liabilities was capitalized for the three months ended March 31, 2024 and 2023.
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, 2024 (in thousands).
Future Minimum Lease Payments
April 1, 2024 - December 31, 2024
 $ 876 
2025 1,184 
2026 778 
2027 752 
2028 761 
2029 473 
Thereafter 12,044 
Total 16,868 
Less: imputed interest 5,866 
Total $ 11,002