Leases

12 Months Ended

Dec. 31, 2025

Leases [Abstract]

Leases

Leases

Tenant Lessor Arrangements

The majority of lease payments we receive from our residents are fixed. We receive variable payments from our residents primarily for utility reimbursements. Our total lease income was comprised of the following amounts for all operating leases for the years ended December 31, 2025, 2024, and 2023 (in thousands):

	2025		2024		2023
Fixed lease income	$	716,690	$	728,416	$	752,068
Variable lease income	55,969		55,795		56,060
Total lease income	$	772,659	$	784,211	$	808,128

Generally, our residential leases do not provide extension options and, as of December 31, 2025, have an average remaining term of 7.4 months. In general, our commercial leases have options to extend for a certain period of time at the tenant’s option. As of December 31, 2025, future minimum annual rental payments we are contractually obligated to receive under residential and commercial leases, excluding such extension options, are as follows (in thousands):

2026	$	405,577
2027	73,846
2028	12,979
2029	10,416
2030	8,949
Thereafter	22,654
Total	$	534,421

Lessee Arrangements

We recognize right-of-use assets and related lease liabilities, which are included in other assets, net and accrued liabilities and other, respectively, in our consolidated balance sheets. We estimated the value of the lease liabilities using a discount rate equivalent to the rate we would pay on a secured borrowing with similar terms to the lease.

Substantially all of the payments under our ground and office leases are fixed. We exclude options to extend the lease in our minimum lease terms unless the option is reasonably certain to be exercised. Our total lease cost for ground and office leases for the years ended December 31, 2025, 2024, and 2023 was $21.6 million, $21.5 million, and $21.5 million, respectively.

As of December 31, 2025, the ground and office leases have weighted-average remaining terms of 85.5 and 3.6 years, respectively, and weighted-average discount rates of 6.9% and 4.0%, respectively. As of December 31, 2025, minimum annual rental payments under these operating leases, reconciled to the lease liability included in accrued liabilities and other in our consolidated balance sheets, are as follows (in thousands):

2026	$	8,419
2027	8,528
2028	8,501
2029	7,787
2030	7,304
Thereafter	1,693,743
Total	1,734,282
Less: Discount	1,596,014
Total lease liability	$	138,268

Of the total lease liability as of December 31, 2025, $132.9 million of the balance relates to our ground leases, with the remainder relating to our office leases.

Lesses

Leases

Tenant Lessor Arrangements

The majority of lease payments we receive from our residents are fixed. We receive variable payments from our residents primarily for utility reimbursements. Our total lease income was comprised of the following amounts for all operating leases for the years ended December 31, 2025, 2024, and 2023 (in thousands):

	2025		2024		2023
Fixed lease income	$	716,690	$	728,416	$	752,068
Variable lease income	55,969		55,795		56,060
Total lease income	$	772,659	$	784,211	$	808,128

Generally, our residential leases do not provide extension options and, as of December 31, 2025, have an average remaining term of 7.4 months. In general, our commercial leases have options to extend for a certain period of time at the tenant’s option. As of December 31, 2025, future minimum annual rental payments we are contractually obligated to receive under residential and commercial leases, excluding such extension options, are as follows (in thousands):

2026	$	405,577
2027	73,846
2028	12,979
2029	10,416
2030	8,949
Thereafter	22,654
Total	$	534,421

Lessee Arrangements

We recognize right-of-use assets and related lease liabilities, which are included in other assets, net and accrued liabilities and other, respectively, in our consolidated balance sheets. We estimated the value of the lease liabilities using a discount rate equivalent to the rate we would pay on a secured borrowing with similar terms to the lease.

Substantially all of the payments under our ground and office leases are fixed. We exclude options to extend the lease in our minimum lease terms unless the option is reasonably certain to be exercised. Our total lease cost for ground and office leases for the years ended December 31, 2025, 2024, and 2023 was $21.6 million, $21.5 million, and $21.5 million, respectively.

As of December 31, 2025, the ground and office leases have weighted-average remaining terms of 85.5 and 3.6 years, respectively, and weighted-average discount rates of 6.9% and 4.0%, respectively. As of December 31, 2025, minimum annual rental payments under these operating leases, reconciled to the lease liability included in accrued liabilities and other in our consolidated balance sheets, are as follows (in thousands):

2026	$	8,419
2027	8,528
2028	8,501
2029	7,787
2030	7,304
Thereafter	1,693,743
Total	1,734,282
Less: Discount	1,596,014
Total lease liability	$	138,268

Of the total lease liability as of December 31, 2025, $132.9 million of the balance relates to our ground leases, with the remainder relating to our office leases.