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Leases | 9 Months Ended
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Sep. 30, 2025
Leases |
Leases | Note 3 – Leases Tenant Leases The Company is primarily focused on the ownership, acquisition, development and management of retail properties leased to industry leading tenants. Substantially all of the Company’s tenants are subject to net lease agreements. A net lease typically requires the tenant to be responsible for minimum monthly rent and actual property operating expenses incurred, including property taxes, insurance and maintenance. In addition, the Company’s tenants are typically subject to future rent increases based on fixed amounts or increases in the consumer price indexes and certain leases provide for additional rent calculated as a percentage of the tenants’ gross sales above a specified level. Certain of the Company’s properties are subject to leases under which it retains responsibility for specific costs and expenses of the property. The Company’s leases typically provide the tenant with one or more multi-year renewal options to extend their leases, subject to generally the same terms and conditions, including rent increases, consistent with the initial lease term. The Company attempts to maximize the amount it expects to derive from the underlying real estate property following the end of the lease, to the extent it is not extended. The Company maintains a proactive leasing program that, combined with the quality and locations of its properties, has made its properties attractive to tenants. The Company intends to continue to hold its properties for long-term investment and, accordingly, places a strong emphasis on the quality of construction and an on-going program of regular and preventative maintenance. The Company has elected the practical expedient in ASC 842 on not separating non-lease components from associated lease components. The lease and non-lease components combined as a result of this election largely include tenant rentals and maintenance charges, respectively. The Company applies the accounting requirements of ASC 842 to the combined component. The following table includes information regarding contractual lease payments for the Company’s operating leases for which it is the lessor, for the periods presented (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | Nine Months Ended
​ | ​ | September 30, 2025 |  | September 30, 2024 |  | September 30, 2025 | ​ | September 30, 2024
Total lease payments | ​ | $ | 187,574 | ​ | $ | 159,566 | ​ | $ | 541,661 | ​ | $ | 471,652
Less: Operating cost reimbursements, termination income and percentage rents | ​ |  | 21,090 | ​ |  | 16,246 | ​ |  | 60,831 | ​ |  | 52,752
Total non-variable lease payments | ​ | $ | 166,484 | ​ | $ | 143,320 | ​ | $ | 480,830 | ​ | $ | 418,900
​ At September 30, 2025, future non-variable lease payments to be received from the Company’s operating leases are as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2025 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Year Ending December 31, |  | (remaining) | ​ | 2026 |  | 2027 |  | 2028 |  | 2029 |  | Thereafter |  | Total
Future non-variable lease payments | ​ | $ | 171,883 | ​ | $ | 688,902 |  | $ | 667,378 |  | $ | 629,644 |  | $ | 577,226 | ​ | $ | 2,963,121 |  | $ | 5,698,154
​ Deferred Revenue As of September 30, 2025 and December 31, 2024, there was $29.0 million and $33.1 million, respectively, in deferred revenues resulting from rents paid in advance. Deferred revenues are recognized within accounts payable, accrued expenses, and other liabilities on the condensed consolidated balance sheets as of those dates. Land Lease Obligations The Company is the lessee under land lease agreements for certain of its properties. ASC 842 requires a lessee to recognize right of use assets and lease obligation liabilities that arise from leases, whether qualifying as operating or finance. As of September 30, 2025 and December 31, 2024, the Company had $45.7 million and $47.5 million, respectively, of right of use assets, net, recognized within other assets, net in the condensed consolidated balance sheets, while the corresponding lease obligations, net, of $22.5 million and $21.0 million, respectively, were recognized within accounts payable, accrued expenses, and other liabilities on the condensed consolidated balance sheets as of these dates. The Company’s land leases do not include any variable lease payments. These leases typically provide multi-year renewal options to extend their term as lessee at the Company’s option. Option periods are included in the calculation of the lease obligation liability only when options are reasonably certain to be exercised. Certain of the Company’s land leases qualify as finance leases as a result of purchase options that are reasonably certain of being exercised or automatic transfer of title to the Company at the end of the lease term. Amortization of right of use assets for operating land leases is classified as land lease expense and was $0.6 million and $0.4 million for the three months ended September 30, 2025 and 2024, respectively and $1.6 million and $1.3 million for the nine months ended September 30, 2025 and 2024, respectively. There was no amortization of right of use assets for finance land leases with purchase options that are reasonably certain of being exercised or automatic transfer of title to the Company at the end of the lease term, as the underlying leased asset (land) has an infinite life. Interest expense on finance land leases was less than $0.1 million during the three months ended September 30, 2025 and 2024 and $0.2 million during the nine months ended September 30, 2025 and 2024. In calculating its lease obligations under ground leases, the Company uses discount rates estimated to be equal to what it would have to pay to borrow on a collateralized basis over a similar term, for an amount equal to the lease payments, in a similar economic environment. The following tables include information on the Company’s land leases for which it is the lessee, for the periods presented (dollars in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | ​ | Nine Months Ended
​ |  | September 30, 2025 |  | September 30, 2024 |  | ​ | September 30, 2025 |  | September 30, 2024
Operating leases: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating cash outflows | ​ | $ | 454 | ​ | $ | 299 | ​ | ​ | $ | 1,335 | ​ | $ | 898
Weighted-average remaining lease term - operating leases (years) | ​ | ​ | 29.6 | ​ | ​ | 29.9 | ​ | ​ | ​ | 29.6 | ​ | ​ | 29.9
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Finance leases: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating cash outflows | ​ | $ | 48 | ​ | $ | 62 | ​ | ​ | $ | 143 | ​ | $ | 186
Financing cash outflows | ​ | $ | 3 | ​ | $ | 25 | ​ | ​ | $ | 8 | ​ | $ | 68
Weighted-average remaining lease term - finance leases (years) | ​ | ​ | 26.3 | ​ | ​ | 2.2 | ​ | ​ | ​ | 26.3 | ​ | ​ | 2.2
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Supplemental Disclosure: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Right of use assets added under new ground leases | ​ | $ | — | ​ | $ | 596 | ​ | ​ | $ | 1,767 | ​ | $ | 961
Right of use assets removed as a result of acquisition of real property | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ​ | (2,736) | ​ | ​ | —
Right of use assets net change | ​ | $ | — | ​ | $ | 596 | ​ | ​ | $ | (969) | ​ | $ | 961
​ ​ The weighted-average discount rate used in computing operating and finance lease obligations approximated 5% and 4% at September 30, 2025 and 2024, respectively. The following is a maturity analysis of lease liabilities for operating land leases as of September 30, 2025 (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2025 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Year Ending December 31, |  | (remaining) | ​ | 2026 |  | 2027 |  | 2028 |  | 2029 |  | Thereafter |  | Total
Lease payments | ​ | $ | 454 | ​ | $ | 1,835 |  | $ | 1,683 |  | $ | 1,654 |  | $ | 1,644 | ​ | $ | 28,559 |  | $ | 35,829
Imputed interest | ​ |  | (212) | ​ |  | (819) | ​ |  | (772) | ​ |  | (725) | ​ |  | (677) | ​ |  | (13,321) | ​ |  | (16,526)
Total lease liabilities | ​ | $ | 242 | ​ | $ | 1,016 |  | $ | 911 |  | $ | 929 |  | $ | 967 | ​ | $ | 15,238 |  | $ | 19,303
​ The following is a maturity analysis of lease liabilities for finance land leases as of September 30, 2025 (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 2025 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Year Ending December 31, |  | (remaining) | ​ | 2026 |  | 2027 |  | 2028 |  | 2029 |  | Thereafter |  | Total
Lease payments | ​ | $ | 45 | ​ | $ | 187 |  | $ | 201 |  | $ | 201 |  | $ | 202 | ​ | $ | 6,143 |  | $ | 6,979
Imputed interest | ​ |  | (55) | ​ |  | (192) | ​ |  | (192) | ​ |  | (191) | ​ |  | (191) | ​ |  | (2,964) | ​ |  | (3,785)
Total lease liabilities | ​ | $ | (10) | ​ | $ | (5) |  | $ | 9 |  | $ | 10 |  | $ | 11 | ​ | $ | 3,179 |  | $ | 3,194
​

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