Leases

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

Leases

Lessor

The leases entered into between a customer and us for rental of a Site are renewable upon the consent of both parties or, in some instances, as provided by statute. Long-term leases that are non-cancelable by the tenants are in effect at certain Properties. Rental rate increases at these Properties are primarily a function of increases in the Consumer Price Index, taking into consideration certain conditions. Additionally, periodic market rate adjustments are made as deemed appropriate. In addition, certain state statutes allow entry into long-term agreements that effectively modify lease terms related to rent amounts and increases over the term of the agreements. The following table presents future minimum rents expected to be received under long-term non-cancelable tenant leases, as well as those leases that are subject to long-term agreements governing rent payments and increases:

(amounts in thousands)	As of September 30, 2023
2023	$	31,687
2024	129,794
2025	55,073
2026	24,570
2027	23,096
Thereafter	58,914
Total	$	323,134

Lessee

We lease land under non-cancelable operating leases at ten Properties expiring on various dates between 2028 and 2054. The majority of the leases have terms requiring fixed payments plus additional rents based on a percentage of gross revenues at those Properties. We also have other operating leases, primarily office space, expiring at various dates through 2032. For the quarters ended September 30, 2023 and 2022, total operating lease payments were $1.6 million and $2.7 million, respectively. For the nine months ended September 30, 2023 and 2022, total operating lease payments were $4.9 million and $8.2 million, respectively.

The following table summarizes our minimum future rental payments, excluding variable costs, which are discounted by our incremental borrowing rate to calculate the lease liability for our operating leases as of September 30, 2023:

	As of September 30, 2023
(amounts in thousands)	Ground Leases		Office and Other Leases		Total
2023	$	152	$	1,698	$	1,850
2024	675		3,407		4,082
2025	680		3,108		3,788
2026	684		2,613		3,297
2027	689		2,424		3,113
Thereafter	4,525		10,794		15,319
Total undiscounted rental payments	7,405		24,044		31,449
Less imputed interest	(1,890)		(3,397)		(5,287)
Total lease liabilities	$	5,515	$	20,647	$	26,162

Right-of-use (“ROU”) assets and lease liabilities from our operating leases, included within Other assets, net and Accounts payable and other liabilities on the Consolidated Balance Sheets, were $24.0 million and $26.2 million, respectively, as of September 30, 2023. The weighted average remaining lease term for our operating leases was nine years and the weighted average incremental borrowing rate was 3.8% at September 30, 2023.

ROU assets and lease liabilities from our operating leases, included within Other assets, net and Accounts payable and other liabilities on the Consolidated Balance Sheets, were $25.9 million and $28.0 million, respectively, as of December 31, 2022. The weighted average remaining lease term for our operating leases was nine years and the weighted average incremental borrowing rate was 3.8% at December 31, 2022.

Leases

Leases

Lessor

The leases entered into between a customer and us for rental of a Site are renewable upon the consent of both parties or, in some instances, as provided by statute. Long-term leases that are non-cancelable by the tenants are in effect at certain Properties. Rental rate increases at these Properties are primarily a function of increases in the Consumer Price Index, taking into consideration certain conditions. Additionally, periodic market rate adjustments are made as deemed appropriate. In addition, certain state statutes allow entry into long-term agreements that effectively modify lease terms related to rent amounts and increases over the term of the agreements. The following table presents future minimum rents expected to be received under long-term non-cancelable tenant leases, as well as those leases that are subject to long-term agreements governing rent payments and increases:

(amounts in thousands)	As of September 30, 2023
2023	$	31,687
2024	129,794
2025	55,073
2026	24,570
2027	23,096
Thereafter	58,914
Total	$	323,134

Lessee

We lease land under non-cancelable operating leases at ten Properties expiring on various dates between 2028 and 2054. The majority of the leases have terms requiring fixed payments plus additional rents based on a percentage of gross revenues at those Properties. We also have other operating leases, primarily office space, expiring at various dates through 2032. For the quarters ended September 30, 2023 and 2022, total operating lease payments were $1.6 million and $2.7 million, respectively. For the nine months ended September 30, 2023 and 2022, total operating lease payments were $4.9 million and $8.2 million, respectively.

The following table summarizes our minimum future rental payments, excluding variable costs, which are discounted by our incremental borrowing rate to calculate the lease liability for our operating leases as of September 30, 2023:

	As of September 30, 2023
(amounts in thousands)	Ground Leases		Office and Other Leases		Total
2023	$	152	$	1,698	$	1,850
2024	675		3,407		4,082
2025	680		3,108		3,788
2026	684		2,613		3,297
2027	689		2,424		3,113
Thereafter	4,525		10,794		15,319
Total undiscounted rental payments	7,405		24,044		31,449
Less imputed interest	(1,890)		(3,397)		(5,287)
Total lease liabilities	$	5,515	$	20,647	$	26,162

Right-of-use (“ROU”) assets and lease liabilities from our operating leases, included within Other assets, net and Accounts payable and other liabilities on the Consolidated Balance Sheets, were $24.0 million and $26.2 million, respectively, as of September 30, 2023. The weighted average remaining lease term for our operating leases was nine years and the weighted average incremental borrowing rate was 3.8% at September 30, 2023.

ROU assets and lease liabilities from our operating leases, included within Other assets, net and Accounts payable and other liabilities on the Consolidated Balance Sheets, were $25.9 million and $28.0 million, respectively, as of December 31, 2022. The weighted average remaining lease term for our operating leases was nine years and the weighted average incremental borrowing rate was 3.8% at December 31, 2022.