Quarterly report pursuant to Section 13 or 15(d)

Leases

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Leases
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Leases
Note 11 – Leases
Lessor
As of June 30, 2024, the Company’s operating leases have non-cancelable lease terms ranging from 0.1 years to 14.8 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 June 30, Six Months Ended June 30,
2024 2023 2024 2023
Fixed:
Cash rental revenue $ 30,306  $ 36,410  $ 61,984  $ 72,514 
Straight-line rental revenue (240) 2,275  309  4,959 
Lease intangible amortization 305  174  719  288 
Fixed property operating cost reimbursements 1,445  1,399  2,891  2,783 
Other fixed rental revenue —  85  1,038  235 
Total fixed 31,816  40,343  66,941  80,779 
Variable:
Variable property operating cost reimbursements 7,469  10,679  18,665  19,161 
Other variable rental revenue 638  802  1,312  1,874 
Total variable 8,107  11,481  19,977  21,035 
Total rental revenue $ 39,923  $ 51,824  $ 86,918  $ 101,814 
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, 2024 (in thousands).
Future Minimum
Base Rent Payments
July 1, 2024 - December 31, 2024
 $ 53,431 
2025 83,707 
2026 80,298 
2027 60,138 
2028 46,262 
2029 32,422 
Thereafter 140,636 
Total $ 496,894 
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, 2024, the Company’s operating leases had remaining lease terms ranging from 1.4 years to 60.5 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 3.79% as of June 30, 2024. 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, 2024 and 2023, and $0.6 million for the six months ended June 30, 2024 and 2023. No cash paid for operating lease liabilities was capitalized for the three and six months ended June 30, 2024 and 2023.
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, 2024 (in thousands).
Future Minimum Lease Payments
July 1, 2024 - December 31, 2024
 $ 584 
2025 1,184 
2026 778 
2027 752 
2028 761 
2029 473 
Thereafter 12,044 
Total 16,576 
Less: imputed interest 5,757 
Total $ 10,819 
Leases
Note 11 – Leases
Lessor
As of June 30, 2024, the Company’s operating leases have non-cancelable lease terms ranging from 0.1 years to 14.8 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 June 30, Six Months Ended June 30,
2024 2023 2024 2023
Fixed:
Cash rental revenue $ 30,306  $ 36,410  $ 61,984  $ 72,514 
Straight-line rental revenue (240) 2,275  309  4,959 
Lease intangible amortization 305  174  719  288 
Fixed property operating cost reimbursements 1,445  1,399  2,891  2,783 
Other fixed rental revenue —  85  1,038  235 
Total fixed 31,816  40,343  66,941  80,779 
Variable:
Variable property operating cost reimbursements 7,469  10,679  18,665  19,161 
Other variable rental revenue 638  802  1,312  1,874 
Total variable 8,107  11,481  19,977  21,035 
Total rental revenue $ 39,923  $ 51,824  $ 86,918  $ 101,814 
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, 2024 (in thousands).
Future Minimum
Base Rent Payments
July 1, 2024 - December 31, 2024
 $ 53,431 
2025 83,707 
2026 80,298 
2027 60,138 
2028 46,262 
2029 32,422 
Thereafter 140,636 
Total $ 496,894 
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, 2024, the Company’s operating leases had remaining lease terms ranging from 1.4 years to 60.5 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 3.79% as of June 30, 2024. 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, 2024 and 2023, and $0.6 million for the six months ended June 30, 2024 and 2023. No cash paid for operating lease liabilities was capitalized for the three and six months ended June 30, 2024 and 2023.
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, 2024 (in thousands).
Future Minimum Lease Payments
July 1, 2024 - December 31, 2024
 $ 584 
2025 1,184 
2026 778 
2027 752 
2028 761 
2029 473 
Thereafter 12,044 
Total 16,576 
Less: imputed interest 5,757 
Total $ 10,819