Leases

12 Months Ended

Dec. 31, 2024

A.As Lessor

At December 31, 2024, we owned or held interests in 15,621 properties. Of the 15,621 properties, 15,316, or 98.0%, are single-client properties, and the remaining are multi-client properties. At December 31, 2024, 205 properties were available for lease or sale. The majority of our leases are accounted for as operating leases.

At December 31, 2024, most of the properties in our portfolio were leased under net lease agreements where our client pays or reimburses us for property taxes and assessments and carries insurance coverage for public liability, property damage, fire, and extended coverage.

Rent based on a percentage of our clients' gross sales, or percentage rent, for the years ended December 31, 2024, 2023, and 2022 was $16.0 million, $14.8 million, and $14.9 million respectively.

At December 31, 2024, minimum future annual rental revenue to be received on the operating leases for the next five years and thereafter are as follows (dollars in millions):


	Future Minimum Operating Lease Payments		Future Minimum Direct Financing and Sale-Type Lease Payments (1)
2025	$	4,845.1	$	1.4
2026	4,685.1		1.4
2027	4,433.6		1.0
2028	4,082.3		0.7
2029	3,681.2		0.8
Thereafter	27,654.5		24.3
Total	$	49,381.8	$	29.6

(1) Related to three properties which are subject to direct financing leases and, therefore, revenue is recognized as rental income on the discounted cash flows of the lease payments. Amounts reflected are the cash rent on these respective properties. Two properties are subject to sales-type leases and, therefore, revenue is recognized as sales-type lease income on the discounted cash flows of the lease payments. Amounts reflected are the cash rent on these respective properties.

B.As Lessee

We are the lessee under certain ground lease arrangements, building, and corporate office space leases, which are primarily accounted for as operating leases.

At December 31, 2024, minimum future rental payments due from the Company over the next five years and thereafter are as follows (dollars in millions):


	Operating Leases		Finance Leases		Total
2025	$	39.9	$	4.3	$	44.2
2026	40.0		10.0		50.0
2027	39.3		2.3		41.6
2028	34.0		2.4		36.4
2029	31.4		3.6		35.0
Thereafter	567.0		176.3		743.3
Total	$	751.6	$	198.9	$	950.5
Present value adjustment for remaining lease payments (1)	(298.6)		(121.7)
Total lease liability	$	453.0	$	77.2

(1) The discount rates are specific for individual leases primarily based on the lease term. The range of discount rates used to calculate the present value of the operating lease payments is 1.23% to 6.42% and for finance lease payments is 1.47% to 6.21%. The weighted average discount rate was derived from estimated incremental borrowing rates based on our credit quality, as we did not have any borrowings at the balance sheet date with comparable terms to our lease agreements. At December 31, 2024, the weighted average discount rate for operating leases is 3.96% and the weighted average remaining lease term is 23.74 years. At December 31, 2024, the weighted average discount rate for finance leases is 5.02% and the weighted average remaining lease term is 32.47 years.