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Leases | 6 Months Ended
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Jun. 30, 2026
Leases [Abstract] |
Leases | 12. Leases Lessor We lease commercial space to the U.S. Government through the GSA or other federal agencies, state and local governments or nongovernmental tenants. These leases may contain extension options that are predominately at the sole discretion of the tenant. Certain of our leases contain a “soft-term” period of the lease, meaning that the U.S. Government tenant agency has the right to terminate the lease prior to its stated lease end date. While certain of our leases are contractually subject to early termination, we do not believe that our tenant agencies are likely to terminate these leases early given the build-to-suit features at the properties subject to the leases, the weighted average age of these properties based on the date the property was built or renovated-to-suit, where applicable (approximately 21.1 years as of June 30, 2026), the mission-critical focus of the properties subject to the leases and the current level of operations at such properties. Certain lease agreements include variable lease payments that, in the future, will vary based on changes in inflationary measures, real estate tax rates, usage, or share of expenditures of the leased premises. On February 22, 2026, we received a lump sum reimbursement for FDA – Atlanta relating to the landlord improvements in excess of the U.S. Government’s tenant improvement allowance of $12.6 million. Total reimbursements received for the project as of June 30, 2026 are $150.7 million. We recorded the payments as Deferred revenue on our Consolidated Balance Sheet and began amortizing over the life of the lease through Rental income. The table below sets forth our composition of lease revenue recognized between fixed and variable components (amounts in thousands):
|  | For the three months ended June 30, |  |  | For the six months ended June 30, |
|  | 2026 |  |  | 2025 |  |  | 2026 |  |  | 2025 |
Fixed |  | $ | 83,376 |  |  | $ | 75,293 |  |  | $ | 166,194 |  |  | $ | 146,066 |
Variable |  |  | 6,283 |  |  |  | 5,074 |  |  |  | 12,058 |  |  |  | 9,847 |
Rental income |  |  | 89,659 |  |  |  | 80,367 |  |  |  | 178,252 |  |  |  | 155,913 |
Lessee We lease corporate office space under operating lease arrangements in Washington, D.C., San Diego, CA and West Palm Beach, FL. The leases include variable lease payments that, in the future, will vary based on changes in real estate tax rates, usage, or share of expenditures of the leased premises. We have elected not to separate lease and non-lease components for our corporate office leases. As of June 30, 2026, the unamortized balances associated with our right-of-use operating lease asset and operating lease liability were $3.9 million and $4.4 million, respectively. We used our incremental borrowing rate, which was arrived at utilizing prevailing market rates and the spread on our revolving credit facility, in order to determine the net present value of the minimum lease payments. The following table provides quantitative information for our commenced operating leases for the three and six months ended June 30, 2026 and 2025 (amounts in thousands):
|  | For the three months ended June 30, |  |  | For the six months ended June 30, |
|  | 2026 |  |  | 2025 |  |  | 2026 |  |  | 2025 |
Cash flows from operating lease costs |  | $ | 240 |  |  | $ | 199 |  |  | $ | 464 |  |  | $ | 396 |
In addition, the maturity of fixed lease payments under our commenced corporate office leases as of June 30, 2026 is summarized in the table below (amounts in thousands):
Corporate office leases |  | Payments due by period |
2026 (1) |  |  | 355 |
2027 |  |  | 671 |
2028 |  |  | 1,081 |
2029 |  |  | 1,046 |
2030 |  |  | 731 |
Thereafter |  |  | 1,212 |
Total future minimum lease payments |  | $ | 5,096 |
Imputed interest |  |  | (666 | )
Total |  | $ | 4,430 |
(1) Represents the six months ending December 31, 2026.

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- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-30/tableOfContent + Details
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