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Future Minimum Rents and Lease Payments | 12 Months Ended
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Dec. 31, 2023
Leases [Abstract] |
Future Minimum Rents and Lease Payments | Future Minimum Rents and Lease Payments The Company’s properties are leased to tenants under operating leases with initial term expiration dates ranging from 2024 to 2034. The following table summarizes the future minimum base rents (excluding tenant reimbursements for operating expenses and termination fees related to tenants exercising early termination options) for properties as of December 31, 2023:
Year Ended |  |  |
2024 |  |  | $ | 573,546 |
2025 |  |  | 479,086 |
2026 |  |  | 421,643 |
2027 |  |  | 366,198 |
2028 |  |  | 305,730 |
Thereafter |  |  | 636,918 |
TOTAL |  |  | $ | 2,783,121 |
Operating Lease Agreements The Company is party to long-term non-cancellable operating lease agreements in which it is a lessee, consisting of 12 ground leases, 10 sound stage leases, seven office leases and 17 other leases as of December 31, 2023. The Company’s operating lease obligations have expiration dates ranging from 2024 through 2067, including extension options which the Company is reasonably certain to exercise. Certain leases provide for variable rental payments based on third-party appraisals of fair market land value, CPI adjustments or a percentage of annual gross income. There are no notable restrictions or covenants imposed by the leases, nor guarantees of residual value. As of December 31, 2023, the present value of the remaining contractual payments of $715.3 million under the Company’s operating lease agreements was $389.2 million. The corresponding operating lease right-of-use assets amounted to $376.3 million. During the year ended December 31, 2023 the Company recorded an impairment charge of $9.0 million related to the right-of-use asset for the ground lease at its Foothill Research Center property. See Note 4 for details. The loss is recorded within impairment loss on the Consolidated Statements of Operations. The following table provides information regarding the Company’s future minimum lease payments for its operating leases (including the impact of the extension options which the Company is reasonably certain to exercise) as of December 31, 2023:
For the Year Ended December 31, |  | Lease Payments(1)
2024 |  | $ | 41,311 |
2025 |  | 40,551 |
2026 |  | 38,976 |
2027 |  | 36,303 |
2028 |  | 34,399 |
Thereafter |  | 523,804 |
Total operating lease payments |  | 715,344 |
Less: interest portion |  | (326,134) |
PRESENT VALUE OF OPERATING LEASE LIABILITIES |  | $ | 389,210 |
_____________ 1.Future minimum lease payments for operating leases denominated in a foreign currency are translated to U.S. dollars using the exchange rate in effect as of the financial statement date. The following table summarizes rental expense for operating leases:
| For the Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Variable rental expense | $ | 11,005 |  |  | $ | 9,854 |  |  | $ | 10,405 |
Minimum rental expense | $ | 45,145 |  |  | $ | 31,003 |  |  | $ | 21,482 |
Future Minimum Rents and Lease Payments | Future Minimum Rents and Lease Payments The Company’s properties are leased to tenants under operating leases with initial term expiration dates ranging from 2024 to 2034. The following table summarizes the future minimum base rents (excluding tenant reimbursements for operating expenses and termination fees related to tenants exercising early termination options) for properties as of December 31, 2023:
Year Ended |  |  |
2024 |  |  | $ | 573,546 |
2025 |  |  | 479,086 |
2026 |  |  | 421,643 |
2027 |  |  | 366,198 |
2028 |  |  | 305,730 |
Thereafter |  |  | 636,918 |
TOTAL |  |  | $ | 2,783,121 |
Operating Lease Agreements The Company is party to long-term non-cancellable operating lease agreements in which it is a lessee, consisting of 12 ground leases, 10 sound stage leases, seven office leases and 17 other leases as of December 31, 2023. The Company’s operating lease obligations have expiration dates ranging from 2024 through 2067, including extension options which the Company is reasonably certain to exercise. Certain leases provide for variable rental payments based on third-party appraisals of fair market land value, CPI adjustments or a percentage of annual gross income. There are no notable restrictions or covenants imposed by the leases, nor guarantees of residual value. As of December 31, 2023, the present value of the remaining contractual payments of $715.3 million under the Company’s operating lease agreements was $389.2 million. The corresponding operating lease right-of-use assets amounted to $376.3 million. During the year ended December 31, 2023 the Company recorded an impairment charge of $9.0 million related to the right-of-use asset for the ground lease at its Foothill Research Center property. See Note 4 for details. The loss is recorded within impairment loss on the Consolidated Statements of Operations. The following table provides information regarding the Company’s future minimum lease payments for its operating leases (including the impact of the extension options which the Company is reasonably certain to exercise) as of December 31, 2023:
For the Year Ended December 31, |  | Lease Payments(1)
2024 |  | $ | 41,311 |
2025 |  | 40,551 |
2026 |  | 38,976 |
2027 |  | 36,303 |
2028 |  | 34,399 |
Thereafter |  | 523,804 |
Total operating lease payments |  | 715,344 |
Less: interest portion |  | (326,134) |
PRESENT VALUE OF OPERATING LEASE LIABILITIES |  | $ | 389,210 |
_____________ 1.Future minimum lease payments for operating leases denominated in a foreign currency are translated to U.S. dollars using the exchange rate in effect as of the financial statement date. The following table summarizes rental expense for operating leases:
| For the Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Variable rental expense | $ | 11,005 |  |  | $ | 9,854 |  |  | $ | 10,405 |
Minimum rental expense | $ | 45,145 |  |  | $ | 31,003 |  |  | $ | 21,482 |

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