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Leases
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases
Note 11 – Leases
Lessor
As of June 30, 2026, the Company’s operating leases have non-cancelable lease terms ranging from 0.1 years to 15.2 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 June 30,Six Months Ended June 30,
2026202520262025
Fixed:
Cash rental revenue$22,534 $22,890 $49,045 $46,532 
Straight-line rental revenue2,998 2,519 1,168 6,150 
Lease intangible amortization91 206 241 456 
Fixed property operating cost reimbursements1,711 1,519 3,370 3,028 
Other fixed rental revenue143 792 2,043 1,495 
Total fixed27,477 27,926 55,867 57,661 
Variable:
Variable property operating cost reimbursements6,021 8,580 13,229 16,040 
Other variable rental revenue600 596 1,136 1,198 
Total variable6,621 9,176 14,365 17,238 
Total rental revenue$34,098 $37,102 $70,232 $74,899 
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 June 30, 2026 (in thousands).
Future Minimum
Base Rent Payments
July 1, 2026 - December 31, 2026
$42,471 
202783,362 
202876,381 
202961,975 
203060,195 
203155,444 
Thereafter290,110 
Total$669,938 
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 June 30, 2026, the Company’s operating leases had remaining lease terms ranging from 2.6 years to 58.5 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 3.64% as of June 30, 2026. 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 June 30, 2026 and 2025, and $0.6 million for the six months ended June 30, 2026 and 2025. Operating lease costs were included in property operating and general and administrative expenses in the consolidated statements of operations. No cash paid for operating lease liabilities was capitalized during the three and six months ended June 30, 2026 and 2025.
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 June 30, 2026 (in thousands).
Future Minimum Lease Payments
July 1, 2026 - December 31, 2026
$467 
20271,239 
20281,262 
2029990 
2030980 
2031715 
Thereafter8,445 
Total14,098 
Less: imputed interest4,001 
Total$10,097 
The Company’s lease liability is included in other liabilities, net in the consolidated balance sheets.
Leases
Note 11 – Leases
Lessor
As of June 30, 2026, the Company’s operating leases have non-cancelable lease terms ranging from 0.1 years to 15.2 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 June 30,Six Months Ended June 30,
2026202520262025
Fixed:
Cash rental revenue$22,534 $22,890 $49,045 $46,532 
Straight-line rental revenue2,998 2,519 1,168 6,150 
Lease intangible amortization91 206 241 456 
Fixed property operating cost reimbursements1,711 1,519 3,370 3,028 
Other fixed rental revenue143 792 2,043 1,495 
Total fixed27,477 27,926 55,867 57,661 
Variable:
Variable property operating cost reimbursements6,021 8,580 13,229 16,040 
Other variable rental revenue600 596 1,136 1,198 
Total variable6,621 9,176 14,365 17,238 
Total rental revenue$34,098 $37,102 $70,232 $74,899 
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 June 30, 2026 (in thousands).
Future Minimum
Base Rent Payments
July 1, 2026 - December 31, 2026
$42,471 
202783,362 
202876,381 
202961,975 
203060,195 
203155,444 
Thereafter290,110 
Total$669,938 
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 June 30, 2026, the Company’s operating leases had remaining lease terms ranging from 2.6 years to 58.5 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 3.64% as of June 30, 2026. 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 June 30, 2026 and 2025, and $0.6 million for the six months ended June 30, 2026 and 2025. Operating lease costs were included in property operating and general and administrative expenses in the consolidated statements of operations. No cash paid for operating lease liabilities was capitalized during the three and six months ended June 30, 2026 and 2025.
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 June 30, 2026 (in thousands).
Future Minimum Lease Payments
July 1, 2026 - December 31, 2026
$467 
20271,239 
20281,262 
2029990 
2030980 
2031715 
Thereafter8,445 
Total14,098 
Less: imputed interest4,001 
Total$10,097 
The Company’s lease liability is included in other liabilities, net in the consolidated balance sheets.