v3.25.4
LEASES (Tables)
12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Schedule of Components of Rental Revenue
The components of rental revenue for the years ended December 31, 2025, 2024 and 2023 were as follows:
Year Ended December 31,
 (Amounts in thousands)202520242023
Rental Revenue
Fixed lease revenue$347,762 $329,555 $304,050 
Variable lease revenue(1)
122,927 114,910 102,062 
Total rental revenue$470,689 $444,465 $406,112 
(1) Percentage rent for the years ended December 31, 2025, 2024 and 2023 were $3.4 million, $3.6 million and $3.6 million, respectively.
Schedule of Maturity Analysis of Operating Lease Payments to be Received as Lessor
The Company’s operating leases, including those with revenue recognized on a cash basis, are disclosed in the aggregate due to their consistent nature as real estate leases. As of December 31, 2025, the undiscounted cash flows to be received from lease payments of our operating leases on an annual basis for the next five years and thereafter are as follows:
(Amounts in thousands) 
Year Ending December 31,
2026$328,374 
2027315,639 
2028291,667 
2029239,769 
2030181,759 
Thereafter775,045 
Total undiscounted cash flows
$2,132,253 
Schedule of Components of Lease Expense and Supplemental Cash Information Related to Leases
The components of lease expense for the years ended December 31, 2025, 2024 and 2023 were as follows:
Year Ended December 31,
(Amounts in thousands)202520242023
Lease expense
Operating lease cost(1)
$9,990 $10,239 $9,732 
Variable lease cost3,178 2,930 2,902 
Total lease expense$13,168 $13,169 $12,634 
(1) During the years ended December 31, 2025, 2024, and 2023 the Company recognized sublease income of $21.0 million, $20.4 million and $18.7 million, respectively, included in rental revenue on the consolidated statements of income and comprehensive income in relation to certain ground and building lease arrangements. Operating lease cost includes amortization of below-market ground lease intangibles and straight-line lease expense.
Supplemental cash information related to leases for the years ended December 31, 2025 and 2024 was as follows:
 (Amounts in thousands)Year Ended December 31,
Cash paid for amounts included in the measurement of lease liabilities:20252024
Operating cash flows from operating leases$9,667 $10,016 
Operating cash flows from finance lease122 122 
Financing cash flows from finance lease13 13 
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases$— $15,837 
Schedule of Supplemental Noncash Information Related to Operating Leases
Supplemental balance sheet information related to leases as of December 31, 2025 and December 31, 2024 was as follows:
December 31, 2025December 31, 2024
Supplemental noncash informationOperating leasesFinance leaseOperating leasesFinance lease
Weighted-average remaining lease term 10.9 years30.2 years11.4 years31.2 years
Weighted-average discount rates 4.36 %4.01 %4.38 %4.01 %
Schedule of Supplemental Noncash Information Related to Finance Leases
Supplemental balance sheet information related to leases as of December 31, 2025 and December 31, 2024 was as follows:
December 31, 2025December 31, 2024
Supplemental noncash informationOperating leasesFinance leaseOperating leasesFinance lease
Weighted-average remaining lease term 10.9 years30.2 years11.4 years31.2 years
Weighted-average discount rates 4.36 %4.01 %4.38 %4.01 %
Schedule of Maturity Analysis of Operating Lease Payments as Lessee
The undiscounted cash flows to be paid on an annual basis for the next five years and thereafter are presented in the table below. The total amount of lease payments, on an undiscounted basis, are reconciled to the lease liability included within accounts payable, accrued expenses and other liabilities on the consolidated balance sheets by considering the present value discount.
(Amounts in thousands)OperatingFinance
Year Ending December 31,leaseslease
2026$8,307 $124 
20278,045 127 
20287,864 127 
20296,020 127 
20306,262 127 
Thereafter29,946 5,791 
Total undiscounted cash flows66,444 6,423 
Present value discount(10,115)(3,369)
Discounted cash flows$56,329 $3,054 
Schedule of Maturity Analysis of Finance Lease Payments as Lessee
The undiscounted cash flows to be paid on an annual basis for the next five years and thereafter are presented in the table below. The total amount of lease payments, on an undiscounted basis, are reconciled to the lease liability included within accounts payable, accrued expenses and other liabilities on the consolidated balance sheets by considering the present value discount.
(Amounts in thousands)OperatingFinance
Year Ending December 31,leaseslease
2026$8,307 $124 
20278,045 127 
20287,864 127 
20296,020 127 
20306,262 127 
Thereafter29,946 5,791 
Total undiscounted cash flows66,444 6,423 
Present value discount(10,115)(3,369)
Discounted cash flows$56,329 $3,054