Leases

12 Months Ended

Dec. 31, 2025

Leases [Abstract]

Leases

Leases

Lease Income

The following table summarizes the Company’s lease income (in thousands):

	Year Ended December 31,
	2025		2024		2023
Fixed income from operating leases	$	1,565,590	$	1,530,493	$	1,236,502
Variable income from operating leases	591,153		556,703		395,303

Operating Leases

Future Minimum Rents

The following table summarizes future minimum lease payments to be received from tenants under non-cancelable operating leases as of December 31, 2025 (in thousands):

Year	Amount
2026	$	1,429,141
2027	1,374,492
2028	1,272,129
2029	1,149,355
2030	986,141
Thereafter	3,597,746
	$	9,809,004

Tenant Purchase Options

Certain leases contain purchase options whereby the tenant may elect to acquire the underlying real estate. Annualized base rent from leases subject to purchase options, summarized by the year the purchase options are exercisable, excluding leases related to assets classified as held for sale, are as follows (dollars in thousands):

Year	Annualized Base Rent(1)		Number of Properties
2026	$	13,324	8
2027	14,185		8
2028	19,404		6
2029	6,466		7
2030	—		—
Thereafter	28,495		10
	$	81,874	39

_______________________________________

(1)Represents the most recent month’s base rent including additional rent floors annualized for 12 months. Base rent does not include tenant recoveries, additional rents in excess of floors, and non-cash revenue adjustments (i.e., straight-line rents, amortization of market lease intangibles, and deferred revenues).

Lease Costs

The following tables provide information regarding the Company’s leases to which it is the lessee, such as corporate offices and ground leases (dollars in thousands):

	Year Ended December 31,
Lease Expense Information:	2025		2024		2023
Total lease expense	$	23,168	$	22,768	$	17,010

Weighted Average Lease Term and Discount Rate:	December 31, 2025		December 31, 2024
Weighted average remaining lease term (years):
Operating leases(1)	47		48
Weighted average discount rate:
Operating leases	4.86	%	4.79	%

_______________________________________

(1)As of December 31, 2025 and 2024, the weighted average remaining lease term including the Company’s options to extend its operating leases was 64 years and 66 years, respectively.

The following table summarizes future minimum lease payments under non-cancelable ground and other operating leases, excluding amounts reported in liabilities related to assets held for sale, included in the Company’s lease liability as of December 31, 2025 (in thousands):

Year	Amount
2026	$	21,049
2027	18,176
2028	18,209
2029	18,378
2030	15,654
Thereafter	741,080
Undiscounted minimum lease payments included in the lease liability	832,546
Less: imputed interest	(536,286)
Present value of lease liability	$	296,260

Depreciation Expense

While the Company leases the majority of its property, plant, and equipment to various tenants under operating leases, in certain situations, the Company owns and operates certain property, plant, and equipment for general corporate purposes. Corporate assets are recorded within other assets within the Company’s Consolidated Balance Sheets and depreciation expense for those assets is recorded in general and administrative expenses in the Company’s Consolidated Statements of Operations. As of December 31, 2025 and 2024, the Company had $45 million and $38 million of corporate assets, respectively. Also included within other assets as of December 31, 2025 and 2024 was $10 million and $8 million, respectively, of accumulated depreciation related to corporate assets. Included within general and administrative expenses for the years ended December 31, 2025, 2024, and 2023 was $3 million, $2 million, and $3 million, respectively, of depreciation expense related to corporate assets.

Tenant Updates

During the first quarter of 2023, the Company wrote off $9 million of straight-line rent receivable associated with four in-place operating leases with Sorrento Therapeutics, Inc. (“Sorrento”), which commenced voluntary reorganization proceedings (the “Filing”) under Chapter 11 of the U.S. Bankruptcy Code during the period. This write-off was recognized as a reduction in rental and related revenues on the Consolidated Statements of Operations. Subsequent to the write-off, revenue related to this tenant was recognized on a cash basis. Sorrento also had a single development lease with the Company, but had not taken occupancy at the time of the Filing. During the year ended December 31, 2023, the Company filed proofs of claims for damages related to its rejected leases, which include the development lease and three of the four operating leases, $4 million of which was received by the Company by drawing on Sorrento’s letters of credit and security deposits. These cash proceeds were recognized as lease termination fee income, which is included in rental and related revenues on the Consolidated Statements of Operations.

On October 26, 2023, the Company amended its lease with Graphite Bio, Inc., which later merged with LENZ Therapeutics, Inc. in March 2024 (“Graphite Bio”), at one of its lab buildings in South San Francisco, California. Under the terms of the amended lease agreement, Graphite Bio’s lease expiration date was accelerated from April 2033 to December 2024 in exchange for an upfront cash payment of $37 million, comprised of a $21 million termination fee and $16 million prepayment of Graphite Bio’s contractual rent through the amended term. The $37 million was recognized as rental and related revenues on the Consolidated Statements of Operations on a straight-line basis through the amended term of the lease.

In July 2024, the Company executed an early lease renewal for approximately 2 million square feet leased by CommonSpirit Health (“CommonSpirit”). The renewal, which is subject to a master agreement, extended the weighted average lease term of existing leases from July 2027 to December 2035, amended the contractual rents to current market rates, and increased the annual contractual lease escalations from 2.5% to 3.0%. In connection with this extension, CommonSpirit was provided the right to reduce the amount of space leased by up to approximately 200,000 square feet at any time after the original lease maturity dates. These termination rights were evaluated for likelihood of exercise in accordance with ASC 842 in the determination of the lease term. During the year ended December 31, 2025, CommonSpirit represented 6% of revenues for the outpatient medical segment and 3% of total revenues.

Leases

Leases

Lease Income

The following table summarizes the Company’s lease income (in thousands):

	Year Ended December 31,
	2025		2024		2023
Fixed income from operating leases	$	1,565,590	$	1,530,493	$	1,236,502
Variable income from operating leases	591,153		556,703		395,303

Operating Leases

Future Minimum Rents

The following table summarizes future minimum lease payments to be received from tenants under non-cancelable operating leases as of December 31, 2025 (in thousands):

Year	Amount
2026	$	1,429,141
2027	1,374,492
2028	1,272,129
2029	1,149,355
2030	986,141
Thereafter	3,597,746
	$	9,809,004

Tenant Purchase Options

Certain leases contain purchase options whereby the tenant may elect to acquire the underlying real estate. Annualized base rent from leases subject to purchase options, summarized by the year the purchase options are exercisable, excluding leases related to assets classified as held for sale, are as follows (dollars in thousands):

Year	Annualized Base Rent(1)		Number of Properties
2026	$	13,324	8
2027	14,185		8
2028	19,404		6
2029	6,466		7
2030	—		—
Thereafter	28,495		10
	$	81,874	39

_______________________________________

(1)Represents the most recent month’s base rent including additional rent floors annualized for 12 months. Base rent does not include tenant recoveries, additional rents in excess of floors, and non-cash revenue adjustments (i.e., straight-line rents, amortization of market lease intangibles, and deferred revenues).

Lease Costs

The following tables provide information regarding the Company’s leases to which it is the lessee, such as corporate offices and ground leases (dollars in thousands):

	Year Ended December 31,
Lease Expense Information:	2025		2024		2023
Total lease expense	$	23,168	$	22,768	$	17,010

Weighted Average Lease Term and Discount Rate:	December 31, 2025		December 31, 2024
Weighted average remaining lease term (years):
Operating leases(1)	47		48
Weighted average discount rate:
Operating leases	4.86	%	4.79	%

_______________________________________

(1)As of December 31, 2025 and 2024, the weighted average remaining lease term including the Company’s options to extend its operating leases was 64 years and 66 years, respectively.

The following table summarizes future minimum lease payments under non-cancelable ground and other operating leases, excluding amounts reported in liabilities related to assets held for sale, included in the Company’s lease liability as of December 31, 2025 (in thousands):

Year	Amount
2026	$	21,049
2027	18,176
2028	18,209
2029	18,378
2030	15,654
Thereafter	741,080
Undiscounted minimum lease payments included in the lease liability	832,546
Less: imputed interest	(536,286)
Present value of lease liability	$	296,260

Depreciation Expense

While the Company leases the majority of its property, plant, and equipment to various tenants under operating leases, in certain situations, the Company owns and operates certain property, plant, and equipment for general corporate purposes. Corporate assets are recorded within other assets within the Company’s Consolidated Balance Sheets and depreciation expense for those assets is recorded in general and administrative expenses in the Company’s Consolidated Statements of Operations. As of December 31, 2025 and 2024, the Company had $45 million and $38 million of corporate assets, respectively. Also included within other assets as of December 31, 2025 and 2024 was $10 million and $8 million, respectively, of accumulated depreciation related to corporate assets. Included within general and administrative expenses for the years ended December 31, 2025, 2024, and 2023 was $3 million, $2 million, and $3 million, respectively, of depreciation expense related to corporate assets.

Tenant Updates

During the first quarter of 2023, the Company wrote off $9 million of straight-line rent receivable associated with four in-place operating leases with Sorrento Therapeutics, Inc. (“Sorrento”), which commenced voluntary reorganization proceedings (the “Filing”) under Chapter 11 of the U.S. Bankruptcy Code during the period. This write-off was recognized as a reduction in rental and related revenues on the Consolidated Statements of Operations. Subsequent to the write-off, revenue related to this tenant was recognized on a cash basis. Sorrento also had a single development lease with the Company, but had not taken occupancy at the time of the Filing. During the year ended December 31, 2023, the Company filed proofs of claims for damages related to its rejected leases, which include the development lease and three of the four operating leases, $4 million of which was received by the Company by drawing on Sorrento’s letters of credit and security deposits. These cash proceeds were recognized as lease termination fee income, which is included in rental and related revenues on the Consolidated Statements of Operations.

On October 26, 2023, the Company amended its lease with Graphite Bio, Inc., which later merged with LENZ Therapeutics, Inc. in March 2024 (“Graphite Bio”), at one of its lab buildings in South San Francisco, California. Under the terms of the amended lease agreement, Graphite Bio’s lease expiration date was accelerated from April 2033 to December 2024 in exchange for an upfront cash payment of $37 million, comprised of a $21 million termination fee and $16 million prepayment of Graphite Bio’s contractual rent through the amended term. The $37 million was recognized as rental and related revenues on the Consolidated Statements of Operations on a straight-line basis through the amended term of the lease.

In July 2024, the Company executed an early lease renewal for approximately 2 million square feet leased by CommonSpirit Health (“CommonSpirit”). The renewal, which is subject to a master agreement, extended the weighted average lease term of existing leases from July 2027 to December 2035, amended the contractual rents to current market rates, and increased the annual contractual lease escalations from 2.5% to 3.0%. In connection with this extension, CommonSpirit was provided the right to reduce the amount of space leased by up to approximately 200,000 square feet at any time after the original lease maturity dates. These termination rights were evaluated for likelihood of exercise in accordance with ASC 842 in the determination of the lease term. During the year ended December 31, 2025, CommonSpirit represented 6% of revenues for the outpatient medical segment and 3% of total revenues.