Future minimum rental receipts, excluding variable payments, tenant reimbursements of expenses and rents related to tenants in default, under non-cancelable operating leases executed as of June 30, 2025 is approximately as follows (in thousands):


	June 30, 2025
Remainder of 2025	$	7,262
2026		16,249
2027		16,449
2028		13,966
2029		12,903
2030		12,756
Thereafter		50,978
Total	$	130,563

The components of lease revenues for the three and six months ended June 30, 2025 and 2024 were as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Fixed rental income	$	2,848	$	3,971	$	6,098	$	8,808
Variable rental income		1,636		361		3,095		1,303
Total rental income	$	4,484	$	4,332	$	9,193	$	10,111

The Company has one ground lease and one corporate office lease which are classified as operating leases. As of June 30, 2025, and December 31, 2024, the outstanding amount of right of use, (“ROU”) assets were $10.5 million and $11.5 million, respectively, which is included in prepaid expenses, deferred expenses and other assets, net on the condensed consolidated balance sheets. As of June 30, 2025, and December 31, 2024, the outstanding lease liabilities were $0.7 million and $1.2 million, respectively, which is included in accounts payable, accrued expenses and other liabilities on the consolidated balance sheets.

The Company recorded rent expense related to leased corporate office space of $0.5 million and $0.5 million for the three months ended June 30, 2025 and 2024, respectively and $0.9 million and $0.7 million for the six months ended June 30, 2025 and 2024, respectively. Such rent expense is classified within general and administrative expenses on the condensed consolidated statements of operations.

On May 1, 2024, the Company exercised its early termination right provision of the corporate office lease. This reduced the lease term by 37 months, amending the initial lease end date from August 30, 2028 to July 31, 2025. In connection with electing its termination right, the Company paid a $1.6 million termination fee on May 1, 2024. The termination fee was recorded as an adjustment to the right-of-use asset.

In addition, the Company recorded ground rent expense of approximately $11.2 thousand and $11.2 thousand for the three months ended June 30, 2025 and 2024, respectively and $22.5 thousand and $22.5 thousand for the six months ended June 30, 2025 and 2024. Such ground rent expense is classified within property operating expenses on the condensed consolidated statements of operations. The ground lease requires the Company to make fixed annual rental payments and expires in 2073 assuming all extension options are exercised.

As of June 30, 2025, the Company expects to make cash payments on operating leases of $0.1 million remaining in 2025, $45.0 thousand in 2026, $45.0 thousand in 2027, $45.0 thousand in 2028, $45.0 thousand in 2029, $45.0 thousand in 2030 and $1.9 million for the periods thereafter. The present value discount is ($0.6) million.

Subsequent to June 30, 2025, the Company entered into a one year extension for a portion of its office space at a cost of $19.0 thousand per month. The Company is electing a short term lease exemption permissible under ASC 842 as the lease has no option to additionally extend and there are no costs associated with the end of the lease.

The following table sets forth information related to the measurement of our lease liabilities as of June 30, 2025:


	June 30, 2025
Weighted-average remaining lease term (in years)		39.1
Weighted-average discount rate		7.57	%
Cash paid for operating leases (in thousands)	$	595