XML 52 R18.htm IDEA: XBRL DOCUMENT v3.25.1
Leases
 3 Months Ended
Mar. 31, 2025
Leases [Abstract]  
Leases
Note 11 – Leases
Lessor
As of March 31, 2025, the Company’s operating leases have non-cancelable lease terms ranging from 0.1 years to 15.8 years. Certain leases with tenants include tenant options to extend or terminate the lease agreements or to purchase the underlying assets. Lease agreements may also contain rent increases that are based on an index or rate (e.g., the consumer price index).
The components of rental revenue from the Company’s operating leases during the periods indicated below were as follows (in thousands):
Three Months Ended March 31,
20252024
Fixed:
Cash rental revenue$23,642 $31,678 
Straight-line rental revenue3,631 549 
Lease intangible amortization250 414 
Fixed property operating cost reimbursements1,509 1,446 
Other fixed rental revenue703 1,038 
Total fixed29,735 35,125 
Variable:
Variable property operating cost reimbursements7,460 11,196 
Other variable rental revenue602 674 
Total variable8,062 11,870 
Total rental revenue$37,797 $46,995 
The following table presents future minimum base rent payments due to the Company under the terms of its operating lease agreements, excluding expense reimbursements, over the next five years and thereafter as of March 31, 2025 (in thousands).
Future Minimum
Base Rent Payments
April 1, 2025 - December 31, 2025
$65,187 
202683,276 
202769,676 
202860,787 
202944,090 
203042,042 
Thereafter203,574 
Total$568,632 
Lessee
The Company is the lessee under ground lease arrangements and corporate office leases, which meet the criteria under U.S. GAAP for an operating lease. As of March 31, 2025, the Company’s operating leases had remaining lease terms ranging from 0.7 years to 59.8 years, which includes options to extend. Under the operating leases, the Company pays rent and may also pay variable costs, including property operating expenses and common area maintenance. The weighted average discount rate used to measure the lease liability for the Company’s operating leases was 3.69% as of March 31, 2025. As the Company’s leases do not provide an implicit rate, the Company used an estimated incremental borrowing rate based on the information available at the lease commencement date or the lease guidance adoption date, as applicable, in determining the present value of lease payments.
Operating lease costs were $0.3 million for the three months ended March 31, 2025 and 2024. No cash paid for operating lease liabilities was capitalized during the three months ended March 31, 2025 and 2024.
The following table reflects the maturity analysis of payments due from the Company over the next five years and thereafter for ground and corporate office lease obligations as of March 31, 2025 (in thousands).
Future Minimum Lease Payments
April 1, 2025 - December 31, 2025
$888 
2026778 
2027752 
2028761 
2029473 
2030447 
Thereafter11,597 
Total15,696 
Less: imputed interest5,450 
Total$10,246 
Leases
Note 11 – Leases
Lessor
As of March 31, 2025, the Company’s operating leases have non-cancelable lease terms ranging from 0.1 years to 15.8 years. Certain leases with tenants include tenant options to extend or terminate the lease agreements or to purchase the underlying assets. Lease agreements may also contain rent increases that are based on an index or rate (e.g., the consumer price index).
The components of rental revenue from the Company’s operating leases during the periods indicated below were as follows (in thousands):
Three Months Ended March 31,
20252024
Fixed:
Cash rental revenue$23,642 $31,678 
Straight-line rental revenue3,631 549 
Lease intangible amortization250 414 
Fixed property operating cost reimbursements1,509 1,446 
Other fixed rental revenue703 1,038 
Total fixed29,735 35,125 
Variable:
Variable property operating cost reimbursements7,460 11,196 
Other variable rental revenue602 674 
Total variable8,062 11,870 
Total rental revenue$37,797 $46,995 
The following table presents future minimum base rent payments due to the Company under the terms of its operating lease agreements, excluding expense reimbursements, over the next five years and thereafter as of March 31, 2025 (in thousands).
Future Minimum
Base Rent Payments
April 1, 2025 - December 31, 2025
$65,187 
202683,276 
202769,676 
202860,787 
202944,090 
203042,042 
Thereafter203,574 
Total$568,632 
Lessee
The Company is the lessee under ground lease arrangements and corporate office leases, which meet the criteria under U.S. GAAP for an operating lease. As of March 31, 2025, the Company’s operating leases had remaining lease terms ranging from 0.7 years to 59.8 years, which includes options to extend. Under the operating leases, the Company pays rent and may also pay variable costs, including property operating expenses and common area maintenance. The weighted average discount rate used to measure the lease liability for the Company’s operating leases was 3.69% as of March 31, 2025. As the Company’s leases do not provide an implicit rate, the Company used an estimated incremental borrowing rate based on the information available at the lease commencement date or the lease guidance adoption date, as applicable, in determining the present value of lease payments.
Operating lease costs were $0.3 million for the three months ended March 31, 2025 and 2024. No cash paid for operating lease liabilities was capitalized during the three months ended March 31, 2025 and 2024.
The following table reflects the maturity analysis of payments due from the Company over the next five years and thereafter for ground and corporate office lease obligations as of March 31, 2025 (in thousands).
Future Minimum Lease Payments
April 1, 2025 - December 31, 2025
$888 
2026778 
2027752 
2028761 
2029473 
2030447 
Thereafter11,597 
Total15,696 
Less: imputed interest5,450 
Total$10,246