XML 46 R31.htm IDEA: XBRL DOCUMENT

LEASES (Tables)

9 Months Ended

Sep. 30, 2025

Lessee - Future minimum lease payments and total operating lease liabilities

Future minimum lease payments and total operating lease liabilities from our ground leases as of September 30, 2025 are as follows (dollars in thousands):


		Ground Leases
2025		$	3,112
2026			12,442
2027			12,442
2028			12,442
2029			12,442
Thereafter			393,010
Total future minimum lease payments (undiscounted)			445,890
Difference between future undiscounted cash flows and discounted cash flows			(266,394)
Total operating lease liabilities (discounted)		$	179,496

Lessee - Components of operating lease expenses

The components of operating lease expenses were as follows (dollars in thousands):


		Three Months Ended September 30,						Nine Months Ended September 30,
		2025			2024			2022			2024
Lease expense:
Contractual lease expense		$	3,458		$	3,331		$	10,184		$	10,031
Variable lease expense (a)			59			47			162			130
Total operating lease expense (b)(c)		$	3,517		$	3,378		$	10,346		$	10,161

(a)

Variable lease expense includes adjustments such as changes in the consumer price index and payments based on a percentage of a community’s revenue.

(b)

Lease expense is reported within the line item Other operating expenses on the Consolidated Statements of Operations.

(c)

For the nine months ended September 30, 2025, Operating lease right-of-use assets and Operating lease liabilities amortized by $2.8 million and $2.8 million, respectively. For the nine months ended September 30, 2024, Operating lease right-of-use assets and Operating lease liabilities amortized by $2.7 million and $2.7 million, respectively. Due to the net impact of the amortization, the Company recorded less than $0.1 million and less than $0.1 million of total operating lease expense during the three months ended September 30, 2025 and 2024, respectively, and $0.1 million and $0.1 million of total operating lease expense during the nine months ended September 30, 2025 and 2024, respectively.

Lessor - Future minimum lease payments

Future minimum lease payments from our retail and commercial leases as of September 30, 2025 are as follows (dollars in thousands):


		Retail and Commercial Leases
2025		$	6,616
2026			28,262
2027			26,018
2028			23,170
2029			18,825
Thereafter			99,739
Total future minimum lease payments (a)		$	202,630

(a)We have excluded our apartment home leases from this table as our apartment home leases generally have initial terms of 12 months or less.