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Leases - The Company as a Lessor
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases - The Company as a Lessor Leases - The Company as a Lessor
The Company leases real estate property to tenants under operating and sales-type leases. Such activity is primarily composed of operating leases within its CRE segment.
In March 2025, the Company entered into a ground lease agreement for a 4.7-acre land parcel located within Maui Business Park. Management evaluated the agreement in accordance with ASC 842 and determined that it met the criteria for classification as a sales-type lease. Accordingly, $5.0 million of land was derecognized and the present value of the future lease payments and the initial unguaranteed residual value of $9.2 million was established as Investments in sales-type leases, net in the Company's consolidated balance sheets. As a result, the Company recognized $4.1 million in selling profit from sales-type leases within Gain (loss) on commercial real estate transactions in the Company's consolidated statements of operations during the year ended December 31, 2025.
As discussed in Note 4 – Real Estate Transactions, in September 2025, the lease of two subdivided units at one CRE industrial property met the criteria for classification as a sales-type lease after the lessee exercised its option to purchase the units and the modified lease classification was re-evaluated. Accordingly, $10.3 million of real estate property, net and $1.2 million of real estate intangible assets, net were derecognized and the present value of the future lease payments and the initial unguaranteed residual value of $14.1 million was established as Investments in sales-type leases, net in the Company's consolidated balance sheets. As a result, the Company recognized $2.6 million in selling profit from sales-type leases within Gain (loss) on commercial real estate transactions in the Company's consolidated statements of operations during the year ended December 31, 2025.
The historical cost of, and accumulated depreciation on, leased property as of December 31, 2025 and 2024, was as follows (in thousands):
20252024
Leased property - real estate$1,673,837 $1,638,098 
Less: accumulated depreciation(285,456)(255,483)
Property under operating leases - net1
$1,388,381 $1,382,615 
1Property under operating leases as of December 31, 2025 includes leased property included in assets held for sale.
Rental income from operating and sales-type leases are included in Operating Revenue in the consolidated statements of operations. Rental income from operating leases is composed of lease payments and variable lease payments. Rental income from sales-type leases is composed of interest income. In accordance with ASC Topic 842, Leases, charges related to the Company's assessment of collectability on amounts due under leases and reserve activity reflect a reversal of the revenue and receivable balance originally recorded. Total rental income (i.e., revenue) under these operating leases and sales-type leases, including revenues deemed uncollectible, net and provision for credit losses on sales-type leases, were as follows (in thousands):
202520242023
Operating leases:
Lease payments$138,075 $135,666 $134,323 
Variable lease payments65,634 63,376 60,836 
Revenues deemed uncollectible, net(1,470)(1,316)(552)
Total rental income from operating leases$202,239 $197,726 $194,607 
Sales-type leases:
Interest income$925 $— $— 
Provision for credit losses on sales-type leases(45)— — 
Total rental income from sales-type leases
$880 $— $— 
Contractual future lease payments to be received on non-cancelable operating and interest income recognized on sales-type leases as of December 31, 2025, were as follows (in thousands):
OperatingSales-Type
2026$136,304 $112 
2027128,546 417 
2028111,532 725 
202993,375 743 
203078,680 762 
Thereafter551,973 141,291 
Total future lease payments and interest income recognized on sales-type leases to be received
$1,100,410 $144,050 
Less: imputed interest(133,863)
Total present value of lease payments$10,187 
Unguaranteed residual assets13,771 
Total investment in sales-type leases$23,958 
Leases - The Company as a Lessor Leases - The Company as a Lessor
The Company leases real estate property to tenants under operating and sales-type leases. Such activity is primarily composed of operating leases within its CRE segment.
In March 2025, the Company entered into a ground lease agreement for a 4.7-acre land parcel located within Maui Business Park. Management evaluated the agreement in accordance with ASC 842 and determined that it met the criteria for classification as a sales-type lease. Accordingly, $5.0 million of land was derecognized and the present value of the future lease payments and the initial unguaranteed residual value of $9.2 million was established as Investments in sales-type leases, net in the Company's consolidated balance sheets. As a result, the Company recognized $4.1 million in selling profit from sales-type leases within Gain (loss) on commercial real estate transactions in the Company's consolidated statements of operations during the year ended December 31, 2025.
As discussed in Note 4 – Real Estate Transactions, in September 2025, the lease of two subdivided units at one CRE industrial property met the criteria for classification as a sales-type lease after the lessee exercised its option to purchase the units and the modified lease classification was re-evaluated. Accordingly, $10.3 million of real estate property, net and $1.2 million of real estate intangible assets, net were derecognized and the present value of the future lease payments and the initial unguaranteed residual value of $14.1 million was established as Investments in sales-type leases, net in the Company's consolidated balance sheets. As a result, the Company recognized $2.6 million in selling profit from sales-type leases within Gain (loss) on commercial real estate transactions in the Company's consolidated statements of operations during the year ended December 31, 2025.
The historical cost of, and accumulated depreciation on, leased property as of December 31, 2025 and 2024, was as follows (in thousands):
20252024
Leased property - real estate$1,673,837 $1,638,098 
Less: accumulated depreciation(285,456)(255,483)
Property under operating leases - net1
$1,388,381 $1,382,615 
1Property under operating leases as of December 31, 2025 includes leased property included in assets held for sale.
Rental income from operating and sales-type leases are included in Operating Revenue in the consolidated statements of operations. Rental income from operating leases is composed of lease payments and variable lease payments. Rental income from sales-type leases is composed of interest income. In accordance with ASC Topic 842, Leases, charges related to the Company's assessment of collectability on amounts due under leases and reserve activity reflect a reversal of the revenue and receivable balance originally recorded. Total rental income (i.e., revenue) under these operating leases and sales-type leases, including revenues deemed uncollectible, net and provision for credit losses on sales-type leases, were as follows (in thousands):
202520242023
Operating leases:
Lease payments$138,075 $135,666 $134,323 
Variable lease payments65,634 63,376 60,836 
Revenues deemed uncollectible, net(1,470)(1,316)(552)
Total rental income from operating leases$202,239 $197,726 $194,607 
Sales-type leases:
Interest income$925 $— $— 
Provision for credit losses on sales-type leases(45)— — 
Total rental income from sales-type leases
$880 $— $— 
Contractual future lease payments to be received on non-cancelable operating and interest income recognized on sales-type leases as of December 31, 2025, were as follows (in thousands):
OperatingSales-Type
2026$136,304 $112 
2027128,546 417 
2028111,532 725 
202993,375 743 
203078,680 762 
Thereafter551,973 141,291 
Total future lease payments and interest income recognized on sales-type leases to be received
$1,100,410 $144,050 
Less: imputed interest(133,863)
Total present value of lease payments$10,187 
Unguaranteed residual assets13,771 
Total investment in sales-type leases$23,958