Leases (Tables)

6 Months Ended

Jun. 30, 2025

Future lease payments to be received under the terms of our operating lease agreements, excluding expense

reimbursements, in effect as of June 30, 2025 are outlined in the table below (in thousands):

The components of our aggregate net investment in our direct financing lease and our sales-type lease as of June 30, 2025

and December 31, 2024 are summarized in the table below (in thousands):


	June 30, 2025	December 31, 2024
Gross investment in direct financing and sales-type leases	$268,879	$251,405
Less: unearned income on direct financing lease	(206,391)	(207,734)
Less: provision for expected credit losses	(2,217)	(2,168)
Net investment in leases	$60,271	$41,503

Future lease payments to be received under the terms of our direct financing lease and our sales-type lease as of June 30,

2025 are outlined in the table below (in thousands):

Our income from rentals includes revenue related to agreements for the rental of our real estate, which primarily includes

revenues subject to the lease accounting standard and the revenue recognition accounting standard as shown below (in thousands):


	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024
Income from rentals:
Revenues subject to the lease accounting standard:
Operating leases	$722,935	$745,626	$1,454,356	$1,491,687
Direct financing and sales-type leases	1,089	662	1,899	1,321
Revenues subject to the lease accounting standard	724,024	746,288	1,456,255	1,493,008
Revenues subject to the revenue recognition accounting standard	13,255	8,874	24,199	17,705
Income from rentals	$737,279	$755,162	$1,480,454	$1,510,713

The reconciliation of future lease payments under noncancelable operating leases in which we are the lessee to the operating

lease liability reflected in our unaudited consolidated balance sheet as of June 30, 2025 is in the table below (in thousands):


Year		Total
2025		$10,777
2026		22,768
2027		21,849
2028		21,517
2029		21,025
Thereafter		686,242
Total future payments under our operating leases in which we are the lessee		784,178
Effect of discounting		(420,759)
Operating lease liability		$363,419

For the three and six months ended June 30, 2025 and 2024, our costs of operating leases in which we are the lessee were as

follows (in thousands):


	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024
Gross operating lease costs	$12,859	$9,930	$25,218	$19,141
Capitalized lease costs	(720)	(518)	(1,413)	(1,046)
Expenses for operating leases in which we are the lessee	$12,139	$9,412	$23,805	$18,095