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Leases (Tables)
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Operating Lease, Lease Income
The following table details the components of operating lease income from leases in which the Company is the lessor.
Year Ended December 31, 2023From Inception through December 31, 2022
Base rent(1)
$149,087 $28,986 
Straight-line rental revenue, net(2)
20,958 2,480 
Variable lease payments(3)
16,913 5,046 
Amortization of below market lease intangibles
187 35 
Total Rental revenue
$187,145 $36,547 
__________________
(1)Base rent consists of fixed lease payments.
(2)Represents lease income related to the excess (deficit) of straight-line rental revenue over fixed lease payments.
(3)Consists of reimbursement of common area maintenance (“CAM”) and real estate taxes, and amortization of tenant inducements.
Lessor, Operating Lease, Payment to be Received, Maturity
The following table presents the undiscounted future minimum rents the Company expects to receive for its net lease properties classified as operating leases as of December 31, 2023.
YearFuture Minimum Rents
2024$165,690 
2025168,101 
2026170,904 
2027173,417 
2028176,038 
Thereafter2,028,992 
Total$2,883,142 
Future Minimum Payments of Sales-Type Lease Receivables As of December 31, 2023, the future minimum
payments of sales-type lease receivables were as follows:
YearFuture Minimum Payments
2024$46,746 
202547,611 
202648,507 
202749,544 
202851,771 
Thereafter6,922,641 
Total lease payment receivable7,166,820 
Less deferred interest income6,587,492 
Less allowance for credit losses16,638 
Total Investment in leases - Financing receivables, net$562,690 
Allowance for Credit Losses on Our Real Estate Portfolio
The following table reflects the roll-forward of the allowance for credit losses on our real estate portfolio for the year ended December 31, 2023:
Year Ended December 31, 2023
Balance as of December 31, 2022$— 
Initial allowance upon adoption7,157 
Current period change in credit allowance9,481 
Ending Balance as of December 31, 2023
$16,638 
Sales-Type Lease, Net Investment in Lease, Credit Quality Indicator
The following tables detail the amortized cost basis of our investments by the credit quality indicator as of December 31, 2023 and January 1, 2023:
December 31, 2023
B1
Ba1
Ba2
Baa2Ba3B2
Caa2
Total
Investment in leases - Financing Receivable$— $204,364 $— $52,247 $— $111,803 $210,914 $579,328 
January 1, 2023
B1
Ba1
Ba2
Baa2Ba3B2Caa2Total
Investment in leases - Financing Receivable$— $201,265 $50,973 $— $159,217 $109,578 $— $521,033 
Our current year change in credit allowance is primarily the result of a credit rating downgrade for one of our tenants.
Undiscounted Future Minimum Rent Payment Obligation of the Wholly-Owned Subsidiary The following table presents the undiscounted future minimum rent payment obligation of the wholly-owned subsidiary:
YearFuture Minimum Payments
2024$4,478 
20254,478 
20264,478 
20274,478 
20284,636 
Thereafter78,197 
Total
$100,745