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Leases
 3 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Leases Leases
Lessor Leases

The Company has operating leases in which it is the lessor for its rental property. Certain leases contain variable lease payments based upon changes in the Consumer Price Index (“CPI”). Billings for real estate taxes and other expenses are also considered to be variable lease payments. Certain leases contain options to renew or terminate the lease, and options for the lessee to purchase the rental property, all of which are predominately at the sole discretion of the lessee.

The following table summarizes the components of rental income included in the accompanying Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023.

 Three months ended March 31,
Rental Income (in thousands)20242023
Fixed lease payments$142,111 $131,086 
Variable lease payments42,189 36,946 
Straight-line rental income2,805 5,112 
Net increase to rental income related to above and below market lease amortization297 124 
Total rental income$187,402 $173,268 

As of March 31, 2024 and December 31, 2023, the Company had accrued rental income of approximately $108.6 million and $105.9 million, respectively, included in tenant accounts receivable on the accompanying Consolidated Balance Sheets.

As of March 31, 2024 and December 31, 2023, the Company’s total liability associated with lease security deposits was approximately $21.6 million and $21.8 million, respectively, which is included in tenant prepaid rent and security deposits on the accompanying Consolidated Balance Sheets.

The following table summarizes the maturity of fixed lease payments under the Company’s leases as of March 31, 2024.

YearMaturity of Fixed Lease Payments (in thousands)
Remainder of 2024$427,444 
2025$535,712 
2026$457,187 
2027$370,622 
2028$304,030 
Thereafter$736,396 

Lessee Leases

The Company has operating leases in which it is the lessee for its ground leases and corporate office leases. These leases have remaining lease terms of approximately 2.1 years to 46.5 years. Certain ground leases contain options to extend the leases for ten years to 20 years, all of which are reasonably certain to be exercised, and are included in the computation of the Company’s right-of-use assets and operating lease liabilities.

The following table summarizes supplemental information related to operating lease right-of-use assets and operating lease liabilities recognized in the Company’s Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023.

Operating Lease Term and Discount RateMarch 31, 2024December 31, 2023
Weighted average remaining lease term (years)31.731.6
Weighted average discount rate6.8 %6.8 %
The following table summarizes the operating lease cost included in the Company’s Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023.

 Three months ended March 31,
Operating Lease Cost (in thousands)20242023
Operating lease cost included in property expense attributable to ground leases$616 $618 
Operating lease cost included in general and administrative expense attributable to corporate office leases430 437 
Total operating lease cost$1,046 $1,055 

The following table summarizes supplemental cash flow information related to operating leases in the Company’s Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023.

 Three months ended March 31,
Operating Leases (in thousands)20242023
Cash paid for amounts included in the measurement of lease liabilities (operating cash flows)$989 $970 

The following table summarizes the maturity of operating lease liabilities under the Company’s ground leases and corporate office leases as of March 31, 2024.

Year
Maturity of Operating Lease Liabilities(1) (in thousands)
Remainder of 2024$2,986 
20254,022 
20263,014 
20272,023 
20282,064 
Thereafter79,898 
Total lease payments94,007 
Less: Imputed interest(60,874)
Present value of operating lease liabilities$33,133 
(1)Operating lease liabilities do not include estimates of CPI rent changes required by certain ground lease agreements. Therefore, actual payments may differ from those presented.
Leases Leases
Lessor Leases

The Company has operating leases in which it is the lessor for its rental property. Certain leases contain variable lease payments based upon changes in the Consumer Price Index (“CPI”). Billings for real estate taxes and other expenses are also considered to be variable lease payments. Certain leases contain options to renew or terminate the lease, and options for the lessee to purchase the rental property, all of which are predominately at the sole discretion of the lessee.

The following table summarizes the components of rental income included in the accompanying Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023.

 Three months ended March 31,
Rental Income (in thousands)20242023
Fixed lease payments$142,111 $131,086 
Variable lease payments42,189 36,946 
Straight-line rental income2,805 5,112 
Net increase to rental income related to above and below market lease amortization297 124 
Total rental income$187,402 $173,268 

As of March 31, 2024 and December 31, 2023, the Company had accrued rental income of approximately $108.6 million and $105.9 million, respectively, included in tenant accounts receivable on the accompanying Consolidated Balance Sheets.

As of March 31, 2024 and December 31, 2023, the Company’s total liability associated with lease security deposits was approximately $21.6 million and $21.8 million, respectively, which is included in tenant prepaid rent and security deposits on the accompanying Consolidated Balance Sheets.

The following table summarizes the maturity of fixed lease payments under the Company’s leases as of March 31, 2024.

YearMaturity of Fixed Lease Payments (in thousands)
Remainder of 2024$427,444 
2025$535,712 
2026$457,187 
2027$370,622 
2028$304,030 
Thereafter$736,396 

Lessee Leases

The Company has operating leases in which it is the lessee for its ground leases and corporate office leases. These leases have remaining lease terms of approximately 2.1 years to 46.5 years. Certain ground leases contain options to extend the leases for ten years to 20 years, all of which are reasonably certain to be exercised, and are included in the computation of the Company’s right-of-use assets and operating lease liabilities.

The following table summarizes supplemental information related to operating lease right-of-use assets and operating lease liabilities recognized in the Company’s Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023.

Operating Lease Term and Discount RateMarch 31, 2024December 31, 2023
Weighted average remaining lease term (years)31.731.6
Weighted average discount rate6.8 %6.8 %
The following table summarizes the operating lease cost included in the Company’s Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023.

 Three months ended March 31,
Operating Lease Cost (in thousands)20242023
Operating lease cost included in property expense attributable to ground leases$616 $618 
Operating lease cost included in general and administrative expense attributable to corporate office leases430 437 
Total operating lease cost$1,046 $1,055 

The following table summarizes supplemental cash flow information related to operating leases in the Company’s Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023.

 Three months ended March 31,
Operating Leases (in thousands)20242023
Cash paid for amounts included in the measurement of lease liabilities (operating cash flows)$989 $970 

The following table summarizes the maturity of operating lease liabilities under the Company’s ground leases and corporate office leases as of March 31, 2024.

Year
Maturity of Operating Lease Liabilities(1) (in thousands)
Remainder of 2024$2,986 
20254,022 
20263,014 
20272,023 
20282,064 
Thereafter79,898 
Total lease payments94,007 
Less: Imputed interest(60,874)
Present value of operating lease liabilities$33,133 
(1)Operating lease liabilities do not include estimates of CPI rent changes required by certain ground lease agreements. Therefore, actual payments may differ from those presented.