Leases

9 Months Ended

Sep. 30, 2025

15.

Leases

We lease office, retail and storage space to tenants, primarily under non-cancellable operating leases which generally have terms ranging from five to fifteen years. Most of our leases provide tenants with extension options at either fixed or market rates and few of our leases provide tenants with options to terminate early, but such options generally impose an economic penalty on the tenant upon exercising. Rental revenue is recognized in accordance with ASC Topic 842, Leases, and includes (i) fixed payments of cash rents, which represent revenue each tenant pays in accordance with the terms of its respective lease and that is recognized on a straight-line basis over the non-cancellable term of the lease, and includes the effects of rent steps and rent abatements under the leases, (ii) variable payments of tenant reimbursements, which are recoveries of all or a portion of the operating expenses and real estate taxes of the property and are recognized in the same period as the expenses are incurred, (iii) amortization of acquired above and below-market leases, net and (iv) lease termination income.

The following table sets forth the details of our rental revenue.


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
(Amounts in thousands)	2025		2024		2025		2024
Rental revenue:
Fixed	$	146,712	$	156,190	$	445,240	$	475,420
Variable		17,975		28,045		66,501		68,216
Total rental revenue	$	164,687	$	184,235	$	511,741	$	543,636

The following table is a schedule of future undiscounted cash flows under non-cancellable operating leases in effect as of September 30, 2025, for the three-month period from October 1, 2025 through December 31, 2025, and each of the five succeeding years and thereafter commencing January 1, 2026.


(Amounts in thousands)
2025	$	135,534
2026		513,976
2027		523,072
2028		544,302
2029		530,602
2030		484,175
Thereafter		2,100,959
Total	$	4,832,620