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Operating Leases (Tables)

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Future Minimum Rentals Receivable

The Company’s real estate investments are leased under operating leases with remaining terms ranging from one year to 25 years.

The following table summarizes the future minimum rentals on the Company's lessor and sublessor arrangements at December 31, 2024 (in thousands):

			December 31, 2024
			Operating leases			Sub-lessor operating ground leases
			Amount (1)			Amount (1)			Total
Year:
2025			$	503,782		$	26,324		$	530,106
2026			508,235			24,829			533,064
2027			494,307			24,303			518,610
2028			486,042			23,489			509,531
2029			481,912			21,930			503,842
Thereafter			3,010,617			176,095			3,186,712
Total			$	5,484,895		$	296,970		$	5,781,865

(1) Included in rental revenue.

Lessee, Operating Lease, Liability, Maturity

The following table summarizes the future minimum lease payments under the ground lease obligations and the office lease at December 31, 2024, excluding contingent rent due under leases where the ground lease payment, or a portion thereof, is based on the level of the tenant's sales (in thousands):

			December 31, 2024
			Ground Leases (1)			Office lease (2)
Year:
2025			$	27,844		$	958
2026			26,401			717
2027			25,075			—
2028			24,192			—
2029			22,635			—
Thereafter			190,198			—
Total lease payments			$	316,345		$	1,675
Less: imputed interest			105,531			89
Present value of lease liabilities			$	210,814		$	1,586

(1) Included in property operating expense.

(2) Included in general and administrative expense.

Lessee, Operating Leases [Text Block]

In addition to its lessor arrangements on its real estate investments, as of December 31, 2024 and 2023, the Company was lessee in 51 operating ground leases, as well as lessee in an operating lease of its executive office. The Company's tenants, who are generally subtenants under these ground leases, are responsible for paying the rent under these ground leases. As of December 31, 2024, rental revenue from one of the Company's tenants, who is also a subtenant under certain ground leases, is being recognized on a cash basis. In addition, two of the Company's ground leases do not currently have subtenants. In the event the tenant fails to pay the ground lease rent or if the property does not have sub-tenants, the Company is primarily responsible for the payment, assuming the Company does not sell or re-tenant the property. As of December 31, 2024, the ground lease arrangements have remaining terms ranging from one year to 42 years. Most of these leases include one or more options to renew. The Company assesses these options using a threshold of reasonably certain, which also includes an assessment of the term of the Company's tenants' leases. For leases where renewal is reasonably certain, those option periods are included within the lease term and also the measurement of the operating lease right-of-use asset and liability. The ground lease arrangements do not contain any residual value guarantees or any material restrictions. As of December 31, 2024, the Company does not have any leases that have not commenced but that create significant rights and obligations.

The Company determines whether an arrangement is or includes a lease at contract inception. For arrangements in which the Company is lessee, operating lease right-of-use assets and liabilities are recognized at commencement date and initially measured based on the present value of lease payments over the defined lease terms. As the Company's leases do not provide an implicit rate, the Company used its incremental borrowing rate in determining the present value of lease payments. The incremental borrowing rate was adjusted for collateral based on the information available at adoption or the commencement date. Inputs to the calculation of the Company's incremental borrowing rate include its senior notes and their option adjusted credit spreads over comparable U.S. Treasury rates, adjusted to a collateralized basis by estimating the credit spread improvement that would result from an upgrade of one ratings classification.

The following table summarizes the future minimum lease payments under the ground lease obligations and the office lease at December 31, 2024, excluding contingent rent due under leases where the ground lease payment, or a portion thereof, is based on the level of the tenant's sales (in thousands):

			December 31, 2024
			Ground Leases (1)			Office lease (2)
Year:
2025			$	27,844		$	958
2026			26,401			717
2027			25,075			—
2028			24,192			—
2029			22,635			—
Thereafter			190,198			—
Total lease payments			$	316,345		$	1,675
Less: imputed interest			105,531			89
Present value of lease liabilities			$	210,814		$	1,586

(1) Included in property operating expense.

(2) Included in general and administrative expense.

The following table summarizes the carrying amounts of the operating lease right-of-use assets and liabilities as of December 31, 2024 and 2023 (in thousands):

												As of December 31,
						Classification						2024			2023
Assets:
Operating ground lease assets						Operating lease right-of-use assets						$	171,885		$	184,376
Office lease asset						Operating lease right-of-use assets						1,479			2,252
Total operating lease right-of-use assets												$	173,364		$	186,628
Sub-lessor straight-line rent receivable						Accounts receivable						17,527			17,430
Total leased assets												$	190,891		$	204,058
Liabilities:
Operating ground lease liabilities						Operating lease liabilities						$	210,814		$	224,540
Office lease liability						Operating lease liabilities						1,586			2,421
Total lease liabilities												$	212,400		$	226,961

The following table summarizes rental revenue, including sublease arrangements and lease costs, including impairment charges on operating lease right-of-use assets for the years ended December 31, 2024, 2023 and 2022(in thousands):

															Year ended December 31,
			Classification												2024			2023			2022
Rental revenue
Operating leases			Rental revenue												$	559,079		$	588,751		$	551,383
Sublease income - operating ground leases			Rental revenue												26,088			27,388			24,218
Lease costs
Operating ground lease cost			Property operating expense												$	26,277		$	26,290		$	25,167
Operating office lease cost			General and administrative expense												896			896			904
Operating lease right-of-use asset impairment charges (1)			Impairment charges												—			—			1,968

(1) During the year ended December 31, 2022, the Company recognized an impairment charge of $2.0 million. See Note 5 for the details on this impairment.

The following table summarizes the weighted-average remaining lease term and the weighted-average discount rate for arrangements where the Company is the lessee as of December 31, 2024 and 2023:

						As of December 31,
						2024			2023
Weighted-average remaining lease term in years
Operating ground leases						14.1			14.6
Operating office lease						1.8			2.8
Weighted-average discount rate
Operating ground leases						5.40		%	5.37		%
Operating office lease						6.04		%	6.04		%

Lease, Cost [Table Text Block]

The following table summarizes the carrying amounts of the operating lease right-of-use assets and liabilities as of December 31, 2024 and 2023 (in thousands):

												As of December 31,
						Classification						2024			2023
Assets:
Operating ground lease assets						Operating lease right-of-use assets						$	171,885		$	184,376
Office lease asset						Operating lease right-of-use assets						1,479			2,252
Total operating lease right-of-use assets												$	173,364		$	186,628
Sub-lessor straight-line rent receivable						Accounts receivable						17,527			17,430
Total leased assets												$	190,891		$	204,058
Liabilities:
Operating ground lease liabilities						Operating lease liabilities						$	210,814		$	224,540
Office lease liability						Operating lease liabilities						1,586			2,421
Total lease liabilities												$	212,400		$	226,961

The following table summarizes rental revenue, including sublease arrangements and lease costs, including impairment charges on operating lease right-of-use assets for the years ended December 31, 2024, 2023 and 2022(in thousands):

															Year ended December 31,
			Classification												2024			2023			2022
Rental revenue
Operating leases			Rental revenue												$	559,079		$	588,751		$	551,383
Sublease income - operating ground leases			Rental revenue												26,088			27,388			24,218
Lease costs
Operating ground lease cost			Property operating expense												$	26,277		$	26,290		$	25,167
Operating office lease cost			General and administrative expense												896			896			904
Operating lease right-of-use asset impairment charges (1)			Impairment charges												—			—			1,968

(1) During the year ended December 31, 2022, the Company recognized an impairment charge of $2.0 million. See Note 5 for the details on this impairment.

X

- Definition

Tabular disclosure of lessee's lease cost. Includes, but is not limited to, interest expense for finance lease, amortization of right-of-use asset for finance lease, operating lease cost, short-term lease cost, variable lease cost and sublease income.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478964/842-20-50-4

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- Definition

Tabular disclosure of undiscounted cash flows of lessee's operating lease liability. Includes, but is not limited to, reconciliation of undiscounted cash flows to operating lease liability recognized in statement of financial position.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478964/842-20-50-6

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X

- 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

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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

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