Leases

9 Months Ended

Sep. 30, 2025

Note 8 – Leases

In all leases, whether we are the lessor or lessee, we define lease term as the non-cancellable term of the lease plus any renewals covered by renewal options that are reasonably certain of exercise based on our assessment of economic factors relevant to the lessee. The non-cancellable term of the lease commences on the date the lessor makes the underlying property in the lease available to the lessee, irrespective of when lease payments begin under the contract.

As Lessee

We have operating leases for certain cinemas, and finance leases for certain equipment assets. Our leases have remaining lease terms of 1 to 25 years, with certain leases having options to extend up to a further 20 years. Lease payments for our cinema operating leases consist of fixed base rent, and for certain leases, variable lease payments consisting of contracted percentages of revenue, changes in the relevant CPI, and/or other contracted financial metrics.

The components of lease expense were as follows:


	Quarter Ended				Nine Months Ended
	September 30,				September 30,
(Dollars in thousands)	2025		2024		2025		2024
Lease cost
Finance lease cost:
Amortization of right-of-use assets	$	10	$	10	$	31	$	31
Interest on lease liabilities		—		1		2		4
Operating lease cost		7,206		7,585		21,301		23,723
Variable lease cost		(14)		734		(14)		2,394
Total lease cost	$	7,202	$	8,330	$	21,320	$	26,152

Supplemental cash flow information related to leases is as follows:


	Nine Months Ended
	September 30,
(Dollars in thousands)	2025		2024
Cash flows relating to lease cost
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for finance leases	$	33	$	33
Operating cash flows for operating leases		17,130		19,455
Right-of-use assets obtained in exchange for new operating lease liabilities		8,231		3,866

Supplemental balance sheet information related to leases is as follows:


	September 30,		December 31,
(Dollars in thousands)	2025		2024
Operating leases
Operating lease right-of-use assets	$	161,400	$	160,873
Operating lease liabilities - current portion		20,176		20,747
Operating lease liabilities - non-current portion		161,593		161,702
Total operating lease liabilities	$	181,769	$	182,449
Finance leases
Property plant and equipment, gross		224		217
Accumulated depreciation		(214)		(175)
Property plant and equipment, net	$	10	$	42
Other current liabilities		11		43
Other long-term liabilities		—		—
Total finance lease liabilities	$	11	$	43

Other information
Weighted-average remaining lease term - finance leases		0		1
Weighted-average remaining lease term - operating leases		11		11
Weighted-average discount rate - finance leases		7.07%		7.07%
Weighted-average discount rate - operating leases		4.92%		4.86%

The maturities of our leases were as follows:


(Dollars in thousands)	Operating ‎leases		Finance ‎leases
2025	$	7,341	$	11
2026		27,756		—
2027		25,920		—
2028		24,836		—
2029		23,407		—
Thereafter		126,347		—
Total lease payments	$	235,607	$	11
Less imputed interest		(53,838)		(0)
Total	$	181,769	$	11

As Lessor

We have entered into various leases as a lessor for our owned real estate properties. These leases vary in length between 1 and 12 years, with certain leases containing options to extend at the behest of the applicable tenants. Lease components consist of fixed base rent, and for certain leases, variable lease payments consisting of contracted percentages of revenue, changes in the relevant CPI, and/or other contracted financial metrics. None of our leases grant any right to the tenant to purchase the underlying asset.

Lease income relating to operating lease payments was as follows:


	Quarter Ended				Nine Months Ended
	September 30,				September 30,
(Dollars in thousands)	2025		2024		2025		2024
Components of lease income
Lease payments	$	2,396	$	2,781	$	7,676	$	8,186
Variable lease payments		71		178		399		600
Total lease income	$	2,467	$	2,959	$	8,075	$	8,786

The book value of underlying assets under operating leases from owned assets was as follows:


	September 30,		December 31,
(Dollars in thousands)	2025		2024
Building and improvements
Gross balance	$	115,451	$	113,424
Accumulated depreciation		(24,565)		(21,692)
Net Book Value	$	90,886	$	91,732

The minimum contractual rent payments due on our leases were as follows:


(Dollars in thousands)	Operating ‎leases
2025	$	2,500
2026		9,942
2027		9,527
2028		9,475
2029		8,926
Thereafter		32,683
Total	$	73,053