Land and buildings leased to others, which are subject to operating leases, are summarized as follows (in thousands):


	March 31, 2024		December 31, 2023
Land	$	159,937	$	168,200
Buildings and improvements	979,290		1,035,791
Less: Accumulated depreciation	(206,401)		(213,034)
	$	932,826	$	990,957

During the three months ended March 31, 2024, the U.S. dollar strengthened against the British pound sterling, euro, and Norwegian Krone. As a result of this fluctuation in foreign currency exchange rates, the carrying value of our Land, buildings and improvements decreased by $4.9 million from December 31, 2023 to March 31, 2024.

Depreciation expense, including the effect of foreign currency translation, on our buildings and improvements subject to operating leases was $7.1 million and $7.8 million for the three months ended March 31, 2024 and 2023, respectively.

During the three months ended March 31, 2024, we capitalized accrued costs of $0.8 million within Land, buildings and improvements related to capital expenditures at certain properties, which is a non-cash investing activity.

During the three months ended March 31, 2024, we sold one property, which was classified as Land, buildings and improvements. As a result, the carrying value of our Land, buildings and improvements decreased by $46.7 million from December 31, 2023 to March 31, 2024 (Note 13).

Lease income related to operating leases recognized and included in the consolidated statements of operations is as follows (in thousands):


	Three Months Ended March 31,
	2024		2023
Lease income — fixed	$	31,362	$	33,966
Lease income — variable (a)	6,952		7,473
Total operating lease income	$	38,314	$	41,439

(a)Includes (i) rent increases based on changes in the U.S. Consumer Price Index and other comparable indices and (ii) reimbursements for property taxes, insurance, and common area maintenance services.

For the three months ended March 31, 2024, other lease-related income on our consolidated statements of operations included lease termination income of $4.7 million recognized from one tenant.

In addition, for the three months ended March 31, 2024 and 2023, other lease-related income on our consolidated statements of operations included income from a parking garage attached to one of our net-leased properties totaling $0.5 million and $0.4 million, respectively.