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Leases
 9 Months Ended
Sep. 30, 2025
Leases [Abstract]  
Leases Leases
Lessor Arrangements
As of September 30, 2025, the Company’s leases had a weighted-average remaining lease term of 6.2 years.
During the quarter ended June 30, 2025, the Company sold two parcels of land that were leased to tenants and had qualified as financing leases. The income from these leases was not significant, and as a result of the sales, the Company no longer has any financing leases.
Lessee Arrangements
As of September 30, 2025, the Company leases land under 16 ground leases associated with certain properties and also has two operating leases for office space. The aggregate durations for the ground leases and operating leases range from 5.0 to 118 years as of September 30, 2025. The Company did not enter into any new ground or operating leases during the first nine months of 2024.
As of September 30, 2025 and December 31, 2024, the Company’s balance sheets include ROU assets of $69.9 million and $66.2 million, respectively, and operating lease liabilities of $41.8 million and $40.1 million, respectively. In determining the operating ROU assets and lease liabilities for the Company’s operating leases in accordance with lease accounting rules, the Company was required to estimate an appropriate incremental borrowing rate on a fully-collateralized basis for the terms of the leases. Since the terms of the Company’s ground leases are significantly longer than the terms of borrowings available to the Company on a fully-collateralized basis, the Company’s estimate of this rate required significant judgment.
As of September 30, 2025, the Company’s ground leases and operating leases have a weighted-average remaining lease term of approximately 24.3 years and a weighted-average discount rate of 5.41%. For the three and nine months ended September 30, 2025, the Company paid cash of approximately $1.0 million and $2.6 million, respectively, for amounts included in the measurement of lease liabilities and recorded expense of $0.4 million and $1.2 million, respectively, on a straight-line basis in accordance with the standard.
For the three and nine months ended September 30, 2024, the Company paid cash of approximately $1.2 million and $2.9 million, respectively, for amounts included in the measurement of lease liabilities and recorded expense of $0.4 million and $1.1 million, respectively, on a straight-line basis in accordance with the standard.
The following table reflects the base cash rental payments due from the Company as of September 30, 2025:
(In thousands)
Future Base Rent Payments (1)
2025 Remainder842 
20263,463 
20273,534 
20283,548 
20293,556 
Thereafter56,487 
Total minimum lease payments (2)
71,430 
Less: Effects of discounting(29,600)
Total present value of lease payments$41,830 
________
(1)Assumes exchange rates of £1.00 to $1.34 for GBP and €1.00 to $1.17 for EUR as of September 30, 2025 for illustrative purposes, as applicable.
(2)Ground lease rental payments due for the Company’s ING Amsterdam lease are not included in the table above as the Company’s ground rent for this property is prepaid through 2050.
Leases Leases
Lessor Arrangements
As of September 30, 2025, the Company’s leases had a weighted-average remaining lease term of 6.2 years.
During the quarter ended June 30, 2025, the Company sold two parcels of land that were leased to tenants and had qualified as financing leases. The income from these leases was not significant, and as a result of the sales, the Company no longer has any financing leases.
Lessee Arrangements
As of September 30, 2025, the Company leases land under 16 ground leases associated with certain properties and also has two operating leases for office space. The aggregate durations for the ground leases and operating leases range from 5.0 to 118 years as of September 30, 2025. The Company did not enter into any new ground or operating leases during the first nine months of 2024.
As of September 30, 2025 and December 31, 2024, the Company’s balance sheets include ROU assets of $69.9 million and $66.2 million, respectively, and operating lease liabilities of $41.8 million and $40.1 million, respectively. In determining the operating ROU assets and lease liabilities for the Company’s operating leases in accordance with lease accounting rules, the Company was required to estimate an appropriate incremental borrowing rate on a fully-collateralized basis for the terms of the leases. Since the terms of the Company’s ground leases are significantly longer than the terms of borrowings available to the Company on a fully-collateralized basis, the Company’s estimate of this rate required significant judgment.
As of September 30, 2025, the Company’s ground leases and operating leases have a weighted-average remaining lease term of approximately 24.3 years and a weighted-average discount rate of 5.41%. For the three and nine months ended September 30, 2025, the Company paid cash of approximately $1.0 million and $2.6 million, respectively, for amounts included in the measurement of lease liabilities and recorded expense of $0.4 million and $1.2 million, respectively, on a straight-line basis in accordance with the standard.
For the three and nine months ended September 30, 2024, the Company paid cash of approximately $1.2 million and $2.9 million, respectively, for amounts included in the measurement of lease liabilities and recorded expense of $0.4 million and $1.1 million, respectively, on a straight-line basis in accordance with the standard.
The following table reflects the base cash rental payments due from the Company as of September 30, 2025:
(In thousands)
Future Base Rent Payments (1)
2025 Remainder842 
20263,463 
20273,534 
20283,548 
20293,556 
Thereafter56,487 
Total minimum lease payments (2)
71,430 
Less: Effects of discounting(29,600)
Total present value of lease payments$41,830 
________
(1)Assumes exchange rates of £1.00 to $1.34 for GBP and €1.00 to $1.17 for EUR as of September 30, 2025 for illustrative purposes, as applicable.
(2)Ground lease rental payments due for the Company’s ING Amsterdam lease are not included in the table above as the Company’s ground rent for this property is prepaid through 2050.