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LEASES | 12 Months Ended
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Dec. 31, 2024
Leases [Abstract] |
LEASES | 5. LEASES Lessor Accounting The Company leases properties to tenants under operating leases with various expiration dates. Future contractual lease payments under operating leases at December 31, 2024 are as follows (in thousands):
Year |  |
2025 |  | $ | 337,848 |
2026 |  | 337,910 |
2027 |  | 315,282 |
2028 |  | 282,838 |
2029 |  | 228,722 |
Thereafter |  | 837,634 |
Lessee Accounting As of December 31, 2024, the Company is the lessee under six long-term ground leases classified as “operating leases” in the consolidated balance sheets. Certain of the Company’s ground leases contain extension options and the Company considered all relevant factors in determining if it was reasonably certain that it would exercise such extension options. The Company concluded that it was not reasonably certain that it would exercise the extension options and, therefore, has not included the extension period in the remaining lease terms. With the exception of certain ground leases that are subject to rent increases periodically based on the CPI index, all lease payments under the ground lease are fixed. The table below summarizes the Company’s operating lease cost (in thousands) recognized through “Property operating expenses” on the consolidated statements of operations (in thousands):
|  | Year Ended December 31,
Lease Cost |  | 2024 |  | 2023
Fixed lease cost |  | $ | 2,100 |  |  | $ | 2,100 |
Variable lease cost |  | 42 |  |  | 57 |
Total |  | $ | 2,142 |  |  | $ | 2,157 |
Weighted-average remaining lease term (years) |  | 53.3 |  | 54.0
Weighted-average discount rate |  | 6.3 | % |  | 6.3 | %
Lease payments by the Company under the terms of all noncancellable ground leases of land are expensed on a straight-line basis regardless of when payments are due. The Company’s ground leases, excluding prepaid ground leases, have remaining lease terms ranging from 5 to 60 years. Lease payments on noncancellable leases at December 31, 2024 are as follows (in thousands):
Year |  | Minimum Rent
2025 |  | $ | 1,321 |
2026 |  | 1,338 |
2027 |  | 1,355 |
2028 |  | 1,373 |
2029 |  | 1,418 |
Thereafter |  | 103,646 |
Total lease payments |  | $ | 110,451 |
Less: Imputed interest |  | 86,905 |
Present value of operating lease liabilities |  | $ | 23,546 |
The Company obtained ground tenancy rights related to three properties in Philadelphia, Pennsylvania, which provide for contingent rent participation by the lessor in certain capital transactions and net operating cash flows of the properties after certain returns are achieved by the Company. Such amounts, if any, will be reflected as contingent rent when incurred. The ground leases also provide for payment by the Company of certain operating costs relating to the land, primarily real estate taxes. The above schedule of future minimum rental payments does not include any contingent rent amounts or any reimbursed expenses.
LEASES | 5. LEASES Lessor Accounting The Company leases properties to tenants under operating leases with various expiration dates. Future contractual lease payments under operating leases at December 31, 2024 are as follows (in thousands):
Year |  |
2025 |  | $ | 337,848 |
2026 |  | 337,910 |
2027 |  | 315,282 |
2028 |  | 282,838 |
2029 |  | 228,722 |
Thereafter |  | 837,634 |
Lessee Accounting As of December 31, 2024, the Company is the lessee under six long-term ground leases classified as “operating leases” in the consolidated balance sheets. Certain of the Company’s ground leases contain extension options and the Company considered all relevant factors in determining if it was reasonably certain that it would exercise such extension options. The Company concluded that it was not reasonably certain that it would exercise the extension options and, therefore, has not included the extension period in the remaining lease terms. With the exception of certain ground leases that are subject to rent increases periodically based on the CPI index, all lease payments under the ground lease are fixed. The table below summarizes the Company’s operating lease cost (in thousands) recognized through “Property operating expenses” on the consolidated statements of operations (in thousands):
|  | Year Ended December 31,
Lease Cost |  | 2024 |  | 2023
Fixed lease cost |  | $ | 2,100 |  |  | $ | 2,100 |
Variable lease cost |  | 42 |  |  | 57 |
Total |  | $ | 2,142 |  |  | $ | 2,157 |
Weighted-average remaining lease term (years) |  | 53.3 |  | 54.0
Weighted-average discount rate |  | 6.3 | % |  | 6.3 | %
Lease payments by the Company under the terms of all noncancellable ground leases of land are expensed on a straight-line basis regardless of when payments are due. The Company’s ground leases, excluding prepaid ground leases, have remaining lease terms ranging from 5 to 60 years. Lease payments on noncancellable leases at December 31, 2024 are as follows (in thousands):
Year |  | Minimum Rent
2025 |  | $ | 1,321 |
2026 |  | 1,338 |
2027 |  | 1,355 |
2028 |  | 1,373 |
2029 |  | 1,418 |
Thereafter |  | 103,646 |
Total lease payments |  | $ | 110,451 |
Less: Imputed interest |  | 86,905 |
Present value of operating lease liabilities |  | $ | 23,546 |
The Company obtained ground tenancy rights related to three properties in Philadelphia, Pennsylvania, which provide for contingent rent participation by the lessor in certain capital transactions and net operating cash flows of the properties after certain returns are achieved by the Company. Such amounts, if any, will be reflected as contingent rent when incurred. The ground leases also provide for payment by the Company of certain operating costs relating to the land, primarily real estate taxes. The above schedule of future minimum rental payments does not include any contingent rent amounts or any reimbursed expenses.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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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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