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Leases
 6 Months Ended
Jun. 30, 2025
Leases [Abstract]  
Leases Leases
Lessor Accounting
The Company’s properties generally are leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2052. Some leases provide tenants with fixed rent renewal terms while others have market rent renewal terms. Some leases provide the lessee, during the term of the lease, with an option or right of first refusal to purchase the leased property. The Company’s single-tenant net leases generally require the lessee to pay minimum rent and all taxes (including property tax), insurance, maintenance and other operating costs associated with the leased property.
The Company's leases typically have escalators that are either based on a stated percentage or an index such as the Consumer Price Index ("CPI"). In addition, most of the Company's leases include non-lease components, such as reimbursement of operating expenses as additional rent, or include the reimbursement of expected operating expenses as part of the lease payment. The Company adopted an accounting policy to combine lease and non-lease components. Rent escalators based on indices and reimbursements of operating expenses that are not included in the lease rate are considered variable lease payments. Variable payments are recognized in the period earned. Lease income for the Company's operating leases, recognized for the three and six months ended June 30, 2025 was $287.1 million and $575.9 million, respectively. Lease income for the Company's operating leases, recognized for the three and six months ended June 30, 2024 was $308.1 million and $626.2 million, respectively.
Future lease payments under the non-cancelable operating leases, excluding any reimbursements and one sales-type lease, as of June 30, 2025, were as follows:
Dollars in thousandsOPERATING
2025$414,817 
2026794,621 
2027683,818 
2028570,959 
2029466,000 
2030 and thereafter1,734,240 
$4,664,455 
Lessee Accounting
The Company has obligations, as the lessee, under operating lease agreements consisting primarily of the Company’s ground leases. As of June 30, 2025, the Company had 198 ground leases associated with properties covering 14.4 million square feet. Some of the Company's ground lease renewal terms are based on fixed rent renewal terms, and others have market rent renewal terms. These ground leases typically have initial terms of 40 to 99 years with expiration dates through 2119. Any rental increases related to the Company’s ground leases are generally stated in the lease or based on CPI. The Company had 68 prepaid ground leases as of June 30, 2025. The amortization of the prepaid rent, included in the operating lease right-of-use asset, represented approximately $0.3 million and $0.5 million of the Company's rental expense for each of the three months ended June 30, 2025 and 2024, respectively, and $0.7 million and $0.9 million for each of the six months ended June 30, 2025 and 2024, respectively.
The Company’s future lease payments (primarily for its 130 non-prepaid ground leases), excluding amounts due for held for sale properties, as of June 30, 2025, were as follows:
Dollars in thousandsOPERATINGFINANCING
2025$5,235 $957 
202611,392 2,106 
202711,581 2,145 
202811,717 2,177 
202911,776 2,209 
2030 and thereafter563,917 383,172 
Total undiscounted lease payments615,618 392,766 
Discount(411,940)(319,747)
Lease liabilities$203,678 $73,019 
The following table provides details of the Company's total lease expense for the three and six months ended June 30, 2025 and 2024:
THREE MONTHS ENDED
June 30,		SIX MONTHS ENDED
June 30,
Dollars in thousands2025202420252024
Operating lease cost
Operating lease expense$4,397 $4,599 $8,753 $9,065 
Variable lease expense1,474 1,315 2,802 2,542 
Finance lease cost
Amortization of right-of-use assets370 392 741 779 
Interest on lease liabilities921 942 1,837 1,880 
Total lease expense$7,162 $7,248 $14,133 $14,266 
Other information
Operating cash flows outflows related to operating leases$4,529 $4,889 $9,021 $8,929 
Operating cash flows outflows related to financing leases$576 $591 $1,119 $1,154 
Financing cash flows outflows related to financing leases$5 $4 $139 $30 
Right-of-use assets obtained in exchange for new operating lease liabilities$— $2,561 $— $2,561 
Weighted-average years remaining lease term (excluding renewal options) - operating leases41.945.9
Weighted-average years remaining lease term (excluding renewal options) - finance leases57.257.4
Weighted-average discount rate - operating leases5.5 %5.7 %
Weighted-average discount rate - finance leases5.0 %5.0 %
Leases Leases
Lessor Accounting
The Company’s properties generally are leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2052. Some leases provide tenants with fixed rent renewal terms while others have market rent renewal terms. Some leases provide the lessee, during the term of the lease, with an option or right of first refusal to purchase the leased property. The Company’s single-tenant net leases generally require the lessee to pay minimum rent and all taxes (including property tax), insurance, maintenance and other operating costs associated with the leased property.
The Company's leases typically have escalators that are either based on a stated percentage or an index such as the Consumer Price Index ("CPI"). In addition, most of the Company's leases include non-lease components, such as reimbursement of operating expenses as additional rent, or include the reimbursement of expected operating expenses as part of the lease payment. The Company adopted an accounting policy to combine lease and non-lease components. Rent escalators based on indices and reimbursements of operating expenses that are not included in the lease rate are considered variable lease payments. Variable payments are recognized in the period earned. Lease income for the Company's operating leases, recognized for the three and six months ended June 30, 2025 was $287.1 million and $575.9 million, respectively. Lease income for the Company's operating leases, recognized for the three and six months ended June 30, 2024 was $308.1 million and $626.2 million, respectively.
Future lease payments under the non-cancelable operating leases, excluding any reimbursements and one sales-type lease, as of June 30, 2025, were as follows:
Dollars in thousandsOPERATING
2025$414,817 
2026794,621 
2027683,818 
2028570,959 
2029466,000 
2030 and thereafter1,734,240 
$4,664,455 
Lessee Accounting
The Company has obligations, as the lessee, under operating lease agreements consisting primarily of the Company’s ground leases. As of June 30, 2025, the Company had 198 ground leases associated with properties covering 14.4 million square feet. Some of the Company's ground lease renewal terms are based on fixed rent renewal terms, and others have market rent renewal terms. These ground leases typically have initial terms of 40 to 99 years with expiration dates through 2119. Any rental increases related to the Company’s ground leases are generally stated in the lease or based on CPI. The Company had 68 prepaid ground leases as of June 30, 2025. The amortization of the prepaid rent, included in the operating lease right-of-use asset, represented approximately $0.3 million and $0.5 million of the Company's rental expense for each of the three months ended June 30, 2025 and 2024, respectively, and $0.7 million and $0.9 million for each of the six months ended June 30, 2025 and 2024, respectively.
The Company’s future lease payments (primarily for its 130 non-prepaid ground leases), excluding amounts due for held for sale properties, as of June 30, 2025, were as follows:
Dollars in thousandsOPERATINGFINANCING
2025$5,235 $957 
202611,392 2,106 
202711,581 2,145 
202811,717 2,177 
202911,776 2,209 
2030 and thereafter563,917 383,172 
Total undiscounted lease payments615,618 392,766 
Discount(411,940)(319,747)
Lease liabilities$203,678 $73,019 
The following table provides details of the Company's total lease expense for the three and six months ended June 30, 2025 and 2024:
THREE MONTHS ENDED
June 30,		SIX MONTHS ENDED
June 30,
Dollars in thousands2025202420252024
Operating lease cost
Operating lease expense$4,397 $4,599 $8,753 $9,065 
Variable lease expense1,474 1,315 2,802 2,542 
Finance lease cost
Amortization of right-of-use assets370 392 741 779 
Interest on lease liabilities921 942 1,837 1,880 
Total lease expense$7,162 $7,248 $14,133 $14,266 
Other information
Operating cash flows outflows related to operating leases$4,529 $4,889 $9,021 $8,929 
Operating cash flows outflows related to financing leases$576 $591 $1,119 $1,154 
Financing cash flows outflows related to financing leases$5 $4 $139 $30 
Right-of-use assets obtained in exchange for new operating lease liabilities$— $2,561 $— $2,561 
Weighted-average years remaining lease term (excluding renewal options) - operating leases41.945.9
Weighted-average years remaining lease term (excluding renewal options) - finance leases57.257.4
Weighted-average discount rate - operating leases5.5 %5.7 %
Weighted-average discount rate - finance leases5.0 %5.0 %