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Leases | 12 Months Ended
--- | ---
Dec. 31, 2023
Leases [Abstract] |
Leases | Leases Lessor The Company leases industrial and office space to tenants primarily under leases classified as non-cancelable operating leases that generally contain provisions for minimum base rents plus reimbursement for certain operating expenses. Total minimum lease payments are recognized in rental income on a straight-line basis over the term of the related lease and estimated reimbursements from tenants for real estate taxes, insurance, common area maintenance and other recoverable operating expenses are recognized in rental income in the period that the expenses are incurred. The Company recognized $219.6 million, $343.3 million and $378.3 million of lease income related to operating lease payments for the year ended December 31, 2023, 2022 and 2021, respectively. The Company's current third-party leases have expirations ranging from 2024 to 2044. The following table sets forth the undiscounted cash flows for future minimum base rents to be received under operating leases as of December 31, 2023.
Minimum Base Rent | As of December 31, 2023
2024 | $ | 196,153 |
2025 | 189,046 |
2026 | 185,005 |
2027 | 166,852 |
2028 | 152,067 |
Thereafter | 595,746 |
Total | $ | 1,484,869 |
The future minimum base rents in the table above excludes tenant reimbursements of operating expenses, amortization of adjustments for deferred rent receivables and the amortization of above/below-market lease intangibles. Lessee - Ground Leases As of December 31, 2023, the Company is the tenant under (i) three ground lease classified as operating leases, and (ii) two ground leases classified as financing leases. Each of these ground leases were assigned to the Company as part of its acquisition of the applicable assets and no incremental costs were incurred for such ground leases. These ground leases are classified as non-cancelable, and contain no renewal options. Lessee - Office Leases As of December 31, 2023, the Company is the tenant under the following two office space leases, each of which is classified as a non-cancelable operating lease: (i) the El Segundo Sublease described in Note 11, Related Party Transactions, above, and (ii) a lease for its office space in Chicago, Illinois, which expires on June 29, 2025. For ground leases and operating leases, the Company incurred costs of approximately $3.9 million for the years ended December 31, 2023 and $4.1 million for the year ended December 31, 2022 respectively, which are included in “Property Operating Expense” in the accompanying consolidated statement of operations. Total cash paid for amounts included in the measurement of operating lease liabilities was $2.1 million for the year ended December 31, 2023 and December 31, 2022, respectively. The following table sets forth the weighted-average for the lease term and the discount rate as of December 31, 2023 and 2022:
| As of December 31, 2023
Lease Term and Discount Rate | Operating |  | Financing
Weighted-average remaining lease term in years | 76.7 |  | 15.2
Weighted-average discount rate (1) | 4.89% |  | 3.36 | %
(1) Because the rate implicit in each of the Company's leases was not readily determinable, the Company used an incremental borrowing rate. In determining the Company's incremental borrowing rate for each lease, the Company considered recent rates on secured borrowings, observable risk-free interest rates and credit spreads correlating to the Company's creditworthiness, the impact of collateralization and the term of each of the Company's lease agreements. Maturities of lease liabilities as of December 31, 2023 were as follows:
| As of December 31, 2023
| Operating |  | Financing
2024 | $ | 1,909 |  |  | $ | 520 |
2025 | 1,570 |  |  | 365 |
2026 | 1,504 |  |  | 375 |
2027 | 1,527 |  |  | 381 |
2028 | 1,595 |  |  | 386 |
Thereafter | 248,693 |  |  | 3,072 |
Total undiscounted lease payments | 256,798 |  |  | 5,099 |
Less imputed interest | (213,715) |  |  | (1,901) |
Total lease liabilities | $ | 43,083 |  |  | $ | 3,198 |
Leases | Leases Lessor The Company leases industrial and office space to tenants primarily under leases classified as non-cancelable operating leases that generally contain provisions for minimum base rents plus reimbursement for certain operating expenses. Total minimum lease payments are recognized in rental income on a straight-line basis over the term of the related lease and estimated reimbursements from tenants for real estate taxes, insurance, common area maintenance and other recoverable operating expenses are recognized in rental income in the period that the expenses are incurred. The Company recognized $219.6 million, $343.3 million and $378.3 million of lease income related to operating lease payments for the year ended December 31, 2023, 2022 and 2021, respectively. The Company's current third-party leases have expirations ranging from 2024 to 2044. The following table sets forth the undiscounted cash flows for future minimum base rents to be received under operating leases as of December 31, 2023.
Minimum Base Rent | As of December 31, 2023
2024 | $ | 196,153 |
2025 | 189,046 |
2026 | 185,005 |
2027 | 166,852 |
2028 | 152,067 |
Thereafter | 595,746 |
Total | $ | 1,484,869 |
The future minimum base rents in the table above excludes tenant reimbursements of operating expenses, amortization of adjustments for deferred rent receivables and the amortization of above/below-market lease intangibles. Lessee - Ground Leases As of December 31, 2023, the Company is the tenant under (i) three ground lease classified as operating leases, and (ii) two ground leases classified as financing leases. Each of these ground leases were assigned to the Company as part of its acquisition of the applicable assets and no incremental costs were incurred for such ground leases. These ground leases are classified as non-cancelable, and contain no renewal options. Lessee - Office Leases As of December 31, 2023, the Company is the tenant under the following two office space leases, each of which is classified as a non-cancelable operating lease: (i) the El Segundo Sublease described in Note 11, Related Party Transactions, above, and (ii) a lease for its office space in Chicago, Illinois, which expires on June 29, 2025. For ground leases and operating leases, the Company incurred costs of approximately $3.9 million for the years ended December 31, 2023 and $4.1 million for the year ended December 31, 2022 respectively, which are included in “Property Operating Expense” in the accompanying consolidated statement of operations. Total cash paid for amounts included in the measurement of operating lease liabilities was $2.1 million for the year ended December 31, 2023 and December 31, 2022, respectively. The following table sets forth the weighted-average for the lease term and the discount rate as of December 31, 2023 and 2022:
| As of December 31, 2023
Lease Term and Discount Rate | Operating |  | Financing
Weighted-average remaining lease term in years | 76.7 |  | 15.2
Weighted-average discount rate (1) | 4.89% |  | 3.36 | %
(1) Because the rate implicit in each of the Company's leases was not readily determinable, the Company used an incremental borrowing rate. In determining the Company's incremental borrowing rate for each lease, the Company considered recent rates on secured borrowings, observable risk-free interest rates and credit spreads correlating to the Company's creditworthiness, the impact of collateralization and the term of each of the Company's lease agreements. Maturities of lease liabilities as of December 31, 2023 were as follows:
| As of December 31, 2023
| Operating |  | Financing
2024 | $ | 1,909 |  |  | $ | 520 |
2025 | 1,570 |  |  | 365 |
2026 | 1,504 |  |  | 375 |
2027 | 1,527 |  |  | 381 |
2028 | 1,595 |  |  | 386 |
Thereafter | 248,693 |  |  | 3,072 |
Total undiscounted lease payments | 256,798 |  |  | 5,099 |
Less imputed interest | (213,715) |  |  | (1,901) |
Total lease liabilities | $ | 43,083 |  |  | $ | 3,198 |

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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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