XML 30 R18.htm IDEA: XBRL DOCUMENT v3.25.3
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Legal Matters
The Company is subject, from time to time, to various types of third-party legal claims or litigation that arise in the ordinary course of business, including, but not limited to, property loss claims, personal injury or other damages resulting from contact with the Company's properties. These claims and lawsuits and any resulting damages are generally covered by the Company's insurance policies. The Company accrues for legal costs associated with loss contingencies when these costs are probable and reasonably estimable. While the resolution of these matters cannot be predicted with certainty, based on currently available information, management does not expect that the final outcome of any pending claims or legal proceedings will have a material adverse effect on the financial condition, results of operations or cash flows of the Company.
Captive Insurance Company
In April 2023, the Company formed a wholly-owned captive insurance company (the "Captive"), which provides insurance coverage for all losses below the deductibles of the Company’s third party liability insurance policies relating to wind, flood, named windstorm, earthquake, fire, and other property-related perils. The Company formed the Captive as part of its overall risk management program and to stabilize insurance costs, manage exposures, and recoup expenses through the function of the captive program. In January 2025, the Captive began underwriting the first layer of general liability insurance for retail properties. An actuarial analysis is performed to estimate future projected claims, related deductibles, and projected expenses necessary to fund associated risk management programs. The Captive generally establishes annual premiums based on projections derived from the past loss experience. The Captive is capitalized in accordance with the applicable regulatory requirements.
During the nine months ended September 30, 2025, the Captive paid claims of $1,762. As of September 30, 2025, the Captive had estimated claims payable of $90.
Lessee Operating and Finance Lease Commitments
The Company has non-cancelable leases for corporate office space for which the Company recognizes operating lease ROU assets and related lease liabilities.
The land underlying West Ashley Station is subject to a long-term ground lease whereby the Company, as lessee, is required to pay fixed and variable rent. On June 10, 2025, the Company recognized a finance lease ROU asset of $8,965, inclusive of an initial fair value adjustment of $2,008, and related finance lease liability of $10,973. The ground lease expires in January 2092.
For operating and finance leases, the discount rate applied to initially measure each ROU asset and lease liability is based on the Company's incremental borrowing rate ("IBR"), as the rates implicit in the lease are not readily determinable. The Company utilizes a market-based approach to estimate an IBR for each lease, which generally considers market-based interest rates and publicly available data for instruments with similar characteristics. We also consider adjustments, as needed, related to tenor, credit spreads, and credit ratings, if not fully incorporated by the aforementioned data sets.
The following table summarizes the Company's operating and finance leases as of September 30, 2025 and December 31, 2024:
As of
Balance Sheet CaptionSeptember 30, 2025December 31, 2024
Operating lease ROU assetsDeferred costs and other assets, net$2,683 $3,012 
Operating lease ROU accumulated amortizationDeferred costs and other assets, net$(1,069)$(1,163)
Operating lease liabilitiesOther liabilities$(2,228)$(2,528)
Finance lease ROU assetBuilding and other improvements$8,965 $— 
Finance lease ROU accumulated amortizationAccumulated depreciation$(41)$— 
Finance lease liabilityDebt, net$(11,033)$— 
Weighted-average remaining lease term - Operating leases4.8 years5.2 years
Weighted-average remaining lease term - Finance lease66.4 yearsN/A
Weighted-average discount rate - Operating leases4.48 %4.49 %
Weighted-average discount rate - Finance lease6.80 %N/A
The following table summarizes the Company's lease costs for the three and nine months ended September 30, 2025 and 2024:
Statement of
Operations Expense Caption		Three months ended September 30Nine months ended September 30
2025202420252024
Operating lease costs:
Minimum lease costGeneral and administrative$108 $126 $324 $379 
Variable lease costGeneral and administrative$68 $88 $225 $266 
Short-term lease costGeneral and administrative$— $52 $— $152 
Finance lease costs:
Amortization of ROU assetDepreciation and amortization$34 $— $42 $— 
Interest on lease liabilityInterest expense, net$187 $— $230 $— 
Variable lease costProperty operating$31 $— $39 $— 

The following table summarizes the Company's future minimum lease obligations as of September 30, 2025:
Future Minimum Lease Payments
Scheduled minimum payments by year:Operating LeasesFinance Lease
Remaining 2025$121 $138 
2026517 550 
2027529 578 
2028522 605 
2029493 605 
Thereafter293 71,816 
Total expected minimum lease obligation2,475 74,292 
Less: Amount representing interest (a)(247)(63,259)
Present value of net minimum lease payments$2,228 $11,033 
(a)Interest includes the amount necessary to reduce the total expected minimum lease obligations to present value calculated at the Company's IBR.