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Leases
 9 Months Ended
Sep. 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 nine months ended September 30, 2025 was
$287.4 million and $863.3 million, respectively. Lease income for the Company's operating leases, recognized for the three and nine months ended September 30, 2024 was $306.5 million and $932.7 million, respectively.
Future lease payments under the non-cancelable operating leases, excluding any reimbursements and one sales-type lease, as of September 30, 2025, were as follows:
Dollars in thousandsOPERATING
2025$202,753 
2026796,402 
2027702,759 
2028593,867 
2029492,473 
2030 and thereafter1,837,965 
$4,626,219 
Lessee Accounting
The Company has obligations, as the lessee, under operating lease agreements consisting primarily of the Company’s ground leases. As of September 30, 2025, the Company had 178 ground leases associated with properties covering 12.8 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 60 prepaid ground leases as of September 30, 2025. The amortization of the prepaid rent, included in the operating lease right-of-use asset, represented approximately $0.3 million and $0.3 million of the Company's rental expense for each of the three months ended September 30, 2025 and 2024, respectively, and $1.0 million and $1.0 million for each of the nine months ended September 30, 2025 and 2024, respectively.
The Company’s future lease payments (primarily for its 118 non-prepaid ground leases), excluding amounts due for held for sale properties, as of September 30, 2025, were as follows:
Dollars in thousandsOPERATINGFINANCING
2025$2,157 $486 
20269,517 2,066 
20279,648 2,105 
20289,763 2,137 
20299,804 2,169 
2030 and thereafter444,727 381,924 
Total undiscounted lease payments485,616 390,887 
Discount(319,385)(318,233)
Lease liabilities$166,231 $72,654 
The following table provides details of the Company's total lease expense for the three and nine months ended September 30, 2025 and 2024:
THREE MONTHS ENDED
September 30,		NINE MONTHS ENDED
September 30,
Dollars in thousands2025202420252024
Operating lease cost
Operating lease expense$4,370 $4,484 $13,125 $13,549 
Variable lease expense1,273 1,240 4,074 3,782 
Finance lease cost
Amortization of right-of-use assets370 383 1,111 1,162 
Interest on lease liabilities927 934 2,764 2,814 
Total lease expense$6,940 $7,041 $21,074 $21,307 
Other information
Operating cash flows outflows related to operating leases$3,445 $3,513 $12,466 $12,441 
Operating cash flows outflows related to financing leases$568 $504 $1,686 $1,658 
Financing cash flows outflows related to financing leases$100 $4 $239 $13 
Right-of-use assets obtained in exchange for new operating lease liabilities$— $1,294 $— $3,855 
Weighted-average years remaining lease term (excluding renewal options) - operating leases40.644.5
Weighted-average years remaining lease term (excluding renewal options) - finance leases57.258.0
Weighted-average discount rate - operating leases5.7 %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 nine months ended September 30, 2025 was
$287.4 million and $863.3 million, respectively. Lease income for the Company's operating leases, recognized for the three and nine months ended September 30, 2024 was $306.5 million and $932.7 million, respectively.
Future lease payments under the non-cancelable operating leases, excluding any reimbursements and one sales-type lease, as of September 30, 2025, were as follows:
Dollars in thousandsOPERATING
2025$202,753 
2026796,402 
2027702,759 
2028593,867 
2029492,473 
2030 and thereafter1,837,965 
$4,626,219 
Lessee Accounting
The Company has obligations, as the lessee, under operating lease agreements consisting primarily of the Company’s ground leases. As of September 30, 2025, the Company had 178 ground leases associated with properties covering 12.8 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 60 prepaid ground leases as of September 30, 2025. The amortization of the prepaid rent, included in the operating lease right-of-use asset, represented approximately $0.3 million and $0.3 million of the Company's rental expense for each of the three months ended September 30, 2025 and 2024, respectively, and $1.0 million and $1.0 million for each of the nine months ended September 30, 2025 and 2024, respectively.
The Company’s future lease payments (primarily for its 118 non-prepaid ground leases), excluding amounts due for held for sale properties, as of September 30, 2025, were as follows:
Dollars in thousandsOPERATINGFINANCING
2025$2,157 $486 
20269,517 2,066 
20279,648 2,105 
20289,763 2,137 
20299,804 2,169 
2030 and thereafter444,727 381,924 
Total undiscounted lease payments485,616 390,887 
Discount(319,385)(318,233)
Lease liabilities$166,231 $72,654 
The following table provides details of the Company's total lease expense for the three and nine months ended September 30, 2025 and 2024:
THREE MONTHS ENDED
September 30,		NINE MONTHS ENDED
September 30,
Dollars in thousands2025202420252024
Operating lease cost
Operating lease expense$4,370 $4,484 $13,125 $13,549 
Variable lease expense1,273 1,240 4,074 3,782 
Finance lease cost
Amortization of right-of-use assets370 383 1,111 1,162 
Interest on lease liabilities927 934 2,764 2,814 
Total lease expense$6,940 $7,041 $21,074 $21,307 
Other information
Operating cash flows outflows related to operating leases$3,445 $3,513 $12,466 $12,441 
Operating cash flows outflows related to financing leases$568 $504 $1,686 $1,658 
Financing cash flows outflows related to financing leases$100 $4 $239 $13 
Right-of-use assets obtained in exchange for new operating lease liabilities$— $1,294 $— $3,855 
Weighted-average years remaining lease term (excluding renewal options) - operating leases40.644.5
Weighted-average years remaining lease term (excluding renewal options) - finance leases57.258.0
Weighted-average discount rate - operating leases5.7 %5.7 %
Weighted-average discount rate - finance leases5.0 %5.0 %