The Company is the lessee under financing leases primarily for land associated with AES Indiana's renewable and storage projects. Right-of-use assets are long-term by nature. The following table summarizes the amounts recognized on the Condensed Consolidated Balance Sheets related to lease asset and liability balances as of the periods indicated (in thousands):


	Consolidated Balance Sheet Classification	March 31, 2026		December 31, 2025
Assets
Right-of-use assets — finance leases	Other non-current assets	$	103,676	$	104,506
Liabilities
Finance lease liabilities (current)	Short-term debt and current portion of long-term debt	$	109	$	154
Finance lease liabilities (non-current)	Long-term debt	107,048		107,079
Total finance lease liabilities		$	107,157	$	107,233

The following table summarizes supplemental balance sheet information related to leases as of the periods indicated:

Lease Term and Discount Rate

March 31, 2026

December 31, 2025

Weighted-average remaining lease term — finance leases

35 years

Weighted-average discount rate — finance leases

5.74

The following table summarizes the components of lease expense recognized in “Operating Costs and Expenses” on the accompanying Condensed Consolidated Statements of Operations for the three months ended March 31, 2026 and 2025, respectively (in thousands):


	Three Months Ended March 31,
Components of Lease Cost	2026		2025

Finance lease cost:
Amortization of right-of-use assets	$	710	$	161
Interest on lease liabilities	1,579		326



Total lease cost	$	2,289	$	487

Operating cash outflows from finance leases were $4.3 million and $3.5 million for the three months ended March 31, 2026 and 2025, respectively.

The following table shows the future lease payments under finance leases together with the present value of the net lease payments as of March 31, 2026 for 2026 through 2030 and thereafter (in thousands):


	Finance Leases
2026	$	1,350
2027	5,438
2028	5,893
2029	6,010
2030	6,130
Thereafter	253,657
Total	278,478
Less: Imputed interest	(171,321)
Present value of lease payments	$	107,157

The Company is the lessor under operating leases for land, office space and operating equipment. Lease receipts from such contracts are recognized as operating lease revenue on a straight-line basis over the lease term whereas contingent rentals are recognized when earned.

The following table presents lease revenue from operating leases in which the Company is the lessor for the periods indicated (in thousands):

The following table presents the underlying gross assets and accumulated depreciation of operating leases included in “Property, plant and equipment, net” for the periods indicated (in thousands):


Property, plant and equipment, net	March 31, 2026		December 31, 2025
Gross assets	$	8,550	$	8,617
Less: Accumulated depreciation	(3,672)		(3,660)
Net assets	$	4,878	$	4,957

The option to extend or terminate a lease is based on customary early termination provisions in the contract.

The following table shows the future lease receipts as of March 31, 2026 for the remainder of 2026 through 2030 and thereafter (in thousands):


	Operating Leases
2026	$	510
2027	483
2028	446
2029	449
2030	417
Thereafter	262
Total	$	2,567