v3.25.2
Leases
 6 Months Ended
Jun. 30, 2025
Leases [Abstract]  
Leases Leases
The Account’s wholly-owned real estate properties are leased to tenants under operating lease agreements which expire on various dates through 2115. Rental income is recognized in accordance with the billing terms of the lease agreements. The leases do not have material variable payments, material residual value guarantees or material restrictive covenants. Certain leases have the option to extend or terminate at the tenant's discretion, with termination options resulting in additional fees due to the Account. Aggregate minimum annual rentals for wholly-owned real estate investments owned by the Account through the non-cancelable lease term, excluding short-term residential leases, as of June 30, 2025 and December 31, 2024, are as follows (in millions):
As of
Years EndedJune 30, 2025December 31, 2024
2025$288.0 
(1)
$604.0 
2026550.3 549.2 
2027483.3 465.0 
2028397.4 375.0 
2029323.9 301.3 
Thereafter1,130.3 1,029.1 
Total$3,173.2 $3,323.6 
(1) Representative of minimum rents owed for the remaining months of the calendar year ending December 31, 2025.
Certain leases provide for additional rental amounts based upon the recovery of actual operating expenses in excess of specified base amounts, sales volume or contractual increases as defined in the lease agreement. These contractual contingent rentals are not included in the table above.
The Account has ground leases for which the Account is the lessee. The leases do not contain material residual value guarantees or material restrictive covenants. The fair value of right-of-use assets and lease liabilities related to ground leases are reflected on the balance sheet within other assets and other liabilities, respectively.
The fair values and key terms of the right-of-use assets and lease liabilities related to the Account's ground leases are as follows (in millions):
As of
June 30, 2025December 31, 2024
Assets:
  Right-of-use assets, at fair value$38.9$37.4
Liabilities:
  Ground lease liabilities, at fair value$38.9$37.4
Key Terms:
Weighted-average remaining lease term (years)61.363.0
 Weighted-average discount rate(1)
8.70 %8.56 %
(1) Discount rates are reflective of the rates utilized during the most recent appraisal of the associated real estate investments.
For both the six months ended June 30, 2025 and 2024, operating lease costs related to ground leases were $1.2 million. These costs include variable lease costs, which are immaterial. Aggregate future minimum annual payments for ground leases held by the Account are as follows (in millions):
As of
June 30, 2025December 31, 2024
Years Ended
2025$1.4 
(1)
$2.6 
20262.7 2.6 
20272.8 2.7 
20282.8 2.7 
2029
2.9 2.7 
Thereafter467.1 443.2 
Total$479.7 $456.5 
(1) Representative of minimum rents owed for the remaining months of the calendar year ending December 31, 2025.
Leases Leases
The Account’s wholly-owned real estate properties are leased to tenants under operating lease agreements which expire on various dates through 2115. Rental income is recognized in accordance with the billing terms of the lease agreements. The leases do not have material variable payments, material residual value guarantees or material restrictive covenants. Certain leases have the option to extend or terminate at the tenant's discretion, with termination options resulting in additional fees due to the Account. Aggregate minimum annual rentals for wholly-owned real estate investments owned by the Account through the non-cancelable lease term, excluding short-term residential leases, as of June 30, 2025 and December 31, 2024, are as follows (in millions):
As of
Years EndedJune 30, 2025December 31, 2024
2025$288.0 
(1)
$604.0 
2026550.3 549.2 
2027483.3 465.0 
2028397.4 375.0 
2029323.9 301.3 
Thereafter1,130.3 1,029.1 
Total$3,173.2 $3,323.6 
(1) Representative of minimum rents owed for the remaining months of the calendar year ending December 31, 2025.
Certain leases provide for additional rental amounts based upon the recovery of actual operating expenses in excess of specified base amounts, sales volume or contractual increases as defined in the lease agreement. These contractual contingent rentals are not included in the table above.
The Account has ground leases for which the Account is the lessee. The leases do not contain material residual value guarantees or material restrictive covenants. The fair value of right-of-use assets and lease liabilities related to ground leases are reflected on the balance sheet within other assets and other liabilities, respectively.
The fair values and key terms of the right-of-use assets and lease liabilities related to the Account's ground leases are as follows (in millions):
As of
June 30, 2025December 31, 2024
Assets:
  Right-of-use assets, at fair value$38.9$37.4
Liabilities:
  Ground lease liabilities, at fair value$38.9$37.4
Key Terms:
Weighted-average remaining lease term (years)61.363.0
 Weighted-average discount rate(1)
8.70 %8.56 %
(1) Discount rates are reflective of the rates utilized during the most recent appraisal of the associated real estate investments.
For both the six months ended June 30, 2025 and 2024, operating lease costs related to ground leases were $1.2 million. These costs include variable lease costs, which are immaterial. Aggregate future minimum annual payments for ground leases held by the Account are as follows (in millions):
As of
June 30, 2025December 31, 2024
Years Ended
2025$1.4 
(1)
$2.6 
20262.7 2.6 
20272.8 2.7 
20282.8 2.7 
2029
2.9 2.7 
Thereafter467.1 443.2 
Total$479.7 $456.5 
(1) Representative of minimum rents owed for the remaining months of the calendar year ending December 31, 2025.