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Future Minimum Rents and Lease Payments | 9 Months Ended
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Sep. 30, 2024
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 2040. 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 September 30, 2024:
Year |  | Amount
Remaining 2024 |  | $ | 143,307 |
2025 |  | 504,795 |
2026 |  | 458,284 |
2027 |  | 401,969 |
2028 |  | 335,214 |
Thereafter |  | 852,553 |
TOTAL |  | $ | 2,696,122 |
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 16 other leases as of September 30, 2024. The Company’s operating lease obligations have expiration dates ranging from 2025 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 September 30, 2024, the present value of the remaining contractual payments of $695.5 million under the Company’s operating lease agreements was $366.6 million. The corresponding operating lease right-of-use assets amounted to $359.3 million. During the three and nine months ended September 30, 2024, the Company recorded $1.4 million of impairment charges related to the right-of-use assets for ground leases at certain office properties. See Note 3 for details. The impairment charges are 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 September 30, 2024:
Year |  | Lease Payments(1)
Remaining 2024 |  | $ | 10,402 |
2025 |  | 41,662 |
2026 |  | 40,615 |
2027 |  | 38,895 |
2028 |  | 37,145 |
Thereafter |  | 526,754 |
Total operating lease payments |  | 695,473 |
Less: interest portion |  | (328,874) |
PRESENT VALUE OF OPERATING LEASE LIABILITIES |  | $ | 366,599 |
__________________ 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:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Variable rental expense | $ | 2,586 |  |  | $ | 2,691 |  |  | $ | 7,443 |  |  | $ | 8,870 |
Minimum rental expense | $ | 11,507 |  |  | $ | 11,372 |  |  | $ | 34,140 |  |  | $ | 33,760 |
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 2040. 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 September 30, 2024:
Year |  | Amount
Remaining 2024 |  | $ | 143,307 |
2025 |  | 504,795 |
2026 |  | 458,284 |
2027 |  | 401,969 |
2028 |  | 335,214 |
Thereafter |  | 852,553 |
TOTAL |  | $ | 2,696,122 |
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 16 other leases as of September 30, 2024. The Company’s operating lease obligations have expiration dates ranging from 2025 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 September 30, 2024, the present value of the remaining contractual payments of $695.5 million under the Company’s operating lease agreements was $366.6 million. The corresponding operating lease right-of-use assets amounted to $359.3 million. During the three and nine months ended September 30, 2024, the Company recorded $1.4 million of impairment charges related to the right-of-use assets for ground leases at certain office properties. See Note 3 for details. The impairment charges are 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 September 30, 2024:
Year |  | Lease Payments(1)
Remaining 2024 |  | $ | 10,402 |
2025 |  | 41,662 |
2026 |  | 40,615 |
2027 |  | 38,895 |
2028 |  | 37,145 |
Thereafter |  | 526,754 |
Total operating lease payments |  | 695,473 |
Less: interest portion |  | (328,874) |
PRESENT VALUE OF OPERATING LEASE LIABILITIES |  | $ | 366,599 |
__________________ 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:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Variable rental expense | $ | 2,586 |  |  | $ | 2,691 |  |  | $ | 7,443 |  |  | $ | 8,870 |
Minimum rental expense | $ | 11,507 |  |  | $ | 11,372 |  |  | $ | 34,140 |  |  | $ | 33,760 |

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