Leases (Tables)

3 Months Ended

Mar. 31, 2024

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.

	Three Months Ended
	March 31, 2024		March 31, 2023
Base rent(1)	$	40,665	$	34,898
Straight-line rental revenue, net(2)	5,112		4,162
Variable lease payments(3)	5,116		6,946
Amortization of above/below market lease intangibles	61		35
Total Rental revenue	$	50,954	$	46,041

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(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 March 31, 2024.

Year	Future Minimum Rents
2024 (remaining)	$	116,967
2025	167,392
2026	170,186
2027	172,689
2028	175,294
2029	175,829
Thereafter	1,613,642
Total	$	2,591,999

Future Minimum Payments of Sales-Type Lease Receivables

As of March 31, 2024, the future minimum

payments of sales-type lease receivables were as follows:

Year	Future Minimum Payments
2024 (remaining)	$	35,730
2025	47,926
2026	48,829
2027	49,874
2028	52,110
2029	53,089
Thereafter	6,993,409
Total lease payment receivable	7,280,967
Less deferred interest income	6,694,881
Less allowance for credit losses	15,620
Total Investment in leases - Financing receivables	$	570,466

Allowance for Credit Losses on Our Real Estate Portfolio

The following table reflects the change to the allowance for credit losses on our real estate portfolio for the three months ended March 31, 2024 and March 31, 2023:

	Three Months Ended
	March 31, 2024		March 31, 2023
Balance, beginning of period	$	16,638	$	—
Initial allowance upon adoption	—		7,157
Current period change in credit allowance	(1,018)		(72)
Balance, end of period	$	15,620	$	7,085

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 March 31, 2024 and January 1, 2024:

	March 31, 2024
	Ba1		Baa2		B2		Caa2		Total
Investment in leases - Financing Receivable	$	—	$	56,493	$	317,577	$	212,016	$	586,086

	December 31, 2023
	Ba1		Baa2		B2		Caa2		Total
Investment in leases - Financing Receivable	$	204,364	$	52,247	$	111,803	$	210,914	$	579,328

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:

Year	Future Minimum Payments
2024 (remaining)	$	3,359
2025	4,478
2026	4,478
2027	4,478
2028	4,636
2029	4,885
Thereafter	73,312
Total	$	99,626