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Leases | 3 Months Ended
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Mar. 31, 2026
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, 2026 and 2025.
|  | Three months ended March 31, |  |
Rental Income (in thousands) |  | 2026 |  | 2025 |  |  |  |
Fixed lease payments |  | $ | 170,082 |  |  | $ | 156,782 |  |  |  |  |
Variable lease payments |  | 46,652 |  |  | 43,759 |  |  |  |  |
Straight-line rental income |  | 6,611 |  |  | 4,243 |  |  |  |  |
Net increase to rental income related to above and below market lease amortization |  | 503 |  |  | 578 |  |  |  |  |
Total rental income |  | $ | 223,848 |  |  | $ | 205,362 |  |  |  |  |
As of March 31, 2026 and December 31, 2025, the Company had accrued rental income of approximately $145.0 million and $139.9 million, respectively, included in tenant accounts receivable on the accompanying Consolidated Balance Sheets. As of March 31, 2026 and December 31, 2025, the Company’s total liability associated with lease security deposits was approximately $25.7 million and $26.3 million, respectively, which is included in tenant prepaid rent and security deposits on the accompanying Consolidated Balance Sheets. 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 0.2 years to 56.5 years. Certain ground leases contain options to extend the leases for 10 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, 2026 and December 31, 2025.
Operating Lease Term and Discount Rate |  | March 31, 2026 |  | December 31, 2025
Weighted average remaining lease term (years) |  | 37.9 |  | 37.6
Weighted average discount rate |  | 7.0 | % |  | 7.0 | %
The following table summarizes the operating lease cost included in the Company’s Consolidated Statements of Operations for the three months ended March 31, 2026 and 2025.
|  | Three months ended March 31, |  |
Operating Lease Cost (in thousands) |  | 2026 |  | 2025 |  |  |  |
Operating lease cost included in property expense attributable to ground leases |  | $ | 771 |  |  | $ | 697 |  |  |  |  |
Operating lease cost included in general and administrative expense attributable to corporate office leases |  | 433 |  |  | 430 |  |  |  |  |
Total operating lease cost |  | $ | 1,204 |  |  | $ | 1,127 |  |  |  |  |
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, 2026 and 2025.
|  | Three months ended March 31,
Operating Leases (in thousands) |  | 2026 |  | 2025
Cash paid for amounts included in the measurement of lease liabilities (operating cash flows) |  | $ | 1,128 |  |  | $ | 1,057 |
The following table summarizes the maturity of operating lease liabilities under the Company’s ground leases and corporate office leases as of March 31, 2026.
Year |  | Maturity of Operating Lease Liabilities(1) (in thousands)
Remainder of 2026 |  | $ | 2,391 |
2027 |  | 2,574 |
2028 |  | 2,616 |
2029 |  | 2,583 |
2030 |  | 2,561 |
Thereafter |  | 107,916 |
Total lease payments |  | 120,641 |
Less: Imputed interest |  | (84,099) |
Present value of operating lease liabilities |  | $ | 36,542 |
(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, 2026 and 2025.
|  | Three months ended March 31, |  |
Rental Income (in thousands) |  | 2026 |  | 2025 |  |  |  |
Fixed lease payments |  | $ | 170,082 |  |  | $ | 156,782 |  |  |  |  |
Variable lease payments |  | 46,652 |  |  | 43,759 |  |  |  |  |
Straight-line rental income |  | 6,611 |  |  | 4,243 |  |  |  |  |
Net increase to rental income related to above and below market lease amortization |  | 503 |  |  | 578 |  |  |  |  |
Total rental income |  | $ | 223,848 |  |  | $ | 205,362 |  |  |  |  |
As of March 31, 2026 and December 31, 2025, the Company had accrued rental income of approximately $145.0 million and $139.9 million, respectively, included in tenant accounts receivable on the accompanying Consolidated Balance Sheets. As of March 31, 2026 and December 31, 2025, the Company’s total liability associated with lease security deposits was approximately $25.7 million and $26.3 million, respectively, which is included in tenant prepaid rent and security deposits on the accompanying Consolidated Balance Sheets. 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 0.2 years to 56.5 years. Certain ground leases contain options to extend the leases for 10 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, 2026 and December 31, 2025.
Operating Lease Term and Discount Rate |  | March 31, 2026 |  | December 31, 2025
Weighted average remaining lease term (years) |  | 37.9 |  | 37.6
Weighted average discount rate |  | 7.0 | % |  | 7.0 | %
The following table summarizes the operating lease cost included in the Company’s Consolidated Statements of Operations for the three months ended March 31, 2026 and 2025.
|  | Three months ended March 31, |  |
Operating Lease Cost (in thousands) |  | 2026 |  | 2025 |  |  |  |
Operating lease cost included in property expense attributable to ground leases |  | $ | 771 |  |  | $ | 697 |  |  |  |  |
Operating lease cost included in general and administrative expense attributable to corporate office leases |  | 433 |  |  | 430 |  |  |  |  |
Total operating lease cost |  | $ | 1,204 |  |  | $ | 1,127 |  |  |  |  |
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, 2026 and 2025.
|  | Three months ended March 31,
Operating Leases (in thousands) |  | 2026 |  | 2025
Cash paid for amounts included in the measurement of lease liabilities (operating cash flows) |  | $ | 1,128 |  |  | $ | 1,057 |
The following table summarizes the maturity of operating lease liabilities under the Company’s ground leases and corporate office leases as of March 31, 2026.
Year |  | Maturity of Operating Lease Liabilities(1) (in thousands)
Remainder of 2026 |  | $ | 2,391 |
2027 |  | 2,574 |
2028 |  | 2,616 |
2029 |  | 2,583 |
2030 |  | 2,561 |
Thereafter |  | 107,916 |
Total lease payments |  | 120,641 |
Less: Imputed interest |  | (84,099) |
Present value of operating lease liabilities |  | $ | 36,542 |
(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.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-30/tableOfContent + Details
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