Leases

6 Months Ended

Jun. 30, 2024

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 other factors. 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 June 30, 2024
2024	$	60,588
2025	119,376
2026	28,439
2027	26,549
2028	24,648
Thereafter	51,211
Total	$	310,811

Lessee

We lease land under non-cancelable operating leases at 10 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 2033. For the quarters ended June 30, 2024 and 2023, total operating lease payments were $1.7 million in both periods. For the six months ended June 30, 2024 and 2023, total operating lease payments were $3.2 million in both periods.

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 June 30, 2024:

	As of June 30, 2024
(amounts in thousands)	Ground Leases		Office and Other Leases		Total
2024	$	409	$	2,543	$	2,952
2025	680		3,758		4,438
2026	684		3,395		4,079
2027	689		3,131		3,820
2028	685		2,955		3,640
Thereafter	3,840		10,745		14,585
Total undiscounted rental payments	6,987		26,527		33,514
Less imputed interest	(1,716)		(4,326)		(6,042)
Total lease liabilities	$	5,271	$	22,201	$	27,472

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 $24.3 million and $27.5 million, respectively, as of June 30, 2024. The weighted average remaining lease term for our operating leases was eight years and the weighted average incremental borrowing rate was 4.0% as of June 30, 2024.

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 $23.6 million and $25.7 million, respectively, as of December 31, 2023. The weighted average remaining lease term for our operating leases was eight years and the weighted average incremental borrowing rate was 3.9% as of December 31, 2023.

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 other factors. 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 June 30, 2024
2024	$	60,588
2025	119,376
2026	28,439
2027	26,549
2028	24,648
Thereafter	51,211
Total	$	310,811

Lessee

We lease land under non-cancelable operating leases at 10 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 2033. For the quarters ended June 30, 2024 and 2023, total operating lease payments were $1.7 million in both periods. For the six months ended June 30, 2024 and 2023, total operating lease payments were $3.2 million in both periods.

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 June 30, 2024:

	As of June 30, 2024
(amounts in thousands)	Ground Leases		Office and Other Leases		Total
2024	$	409	$	2,543	$	2,952
2025	680		3,758		4,438
2026	684		3,395		4,079
2027	689		3,131		3,820
2028	685		2,955		3,640
Thereafter	3,840		10,745		14,585
Total undiscounted rental payments	6,987		26,527		33,514
Less imputed interest	(1,716)		(4,326)		(6,042)
Total lease liabilities	$	5,271	$	22,201	$	27,472

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 $24.3 million and $27.5 million, respectively, as of June 30, 2024. The weighted average remaining lease term for our operating leases was eight years and the weighted average incremental borrowing rate was 4.0% as of June 30, 2024.

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 $23.6 million and $25.7 million, respectively, as of December 31, 2023. The weighted average remaining lease term for our operating leases was eight years and the weighted average incremental borrowing rate was 3.9% as of December 31, 2023.