The Company’s properties are generally leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2046. The Company’s leases generally require the lessee to pay minimum rent, with fixed rent renewal terms or increases based on a Consumer Price Index and may also include additional rent, which may include the reimbursement of taxes (including property taxes), insurance, maintenance and other operating costs associated with the leased property. Some leases also allow the lessee to renew or extend their lease term or in some cases terminate their lease, based on conditions provided in the lease.

Future minimum lease payments under the non-cancelable operating leases due to the Company for the years ending December 31, as of March 31, 2026, are as follows (in thousands):


2026 (nine months ending December 31)	$	82,886
2027	104,567
2028	96,681
2029	86,215
2030	80,167
2031 and thereafter	458,838
	$	909,354

Rental income is recognized as earned over the life of the lease agreement on a straight-line basis when collection of rental payments over the term of the lease is probable. Straight-line rent increased rental income by approximately $0.8 million and $0.6 million, respectively, for the three months ended March 31, 2026 and 2025.

Certain of the Company's leases provide the lessee with a purchase option or a right of first refusal to purchase the leased property. The purchase option provisions generally allow the lessee to purchase the leased property at fair value or at an amount greater than the Company's gross investment in the leased property at the time of the purchase.

At March 31, 2026, the Company had an aggregate gross investment of approximately $42.0 million in 13 real estate properties with purchase options exercisable at March 31, 2026 that had not been exercised.

The Company has one property with two sales-type leases with a net investment totaling approximately $7.8 million included in other assets, net on the Company's Condensed Consolidated Balance Sheets. Future lease payments due to the Company under these leases for the years ending December 31, as of March 31, 2026, are as follows (in thousands):


2026 (nine months ending December 31)	$	653
2027	888
2028	909
2029	932
2030	954
2031 and thereafter	8,664
Total undiscounted lease receivable	13,000
Discount	(5,167)
Lease receivable	$	7,833

The Company recognized interest income of approximately $0.2 million and $0.1 million, respectively, during the three months ended March 31, 2026 and 2025, which is included in other operating interest on the Company's Condensed Consolidated Statements of Income.

At March 31, 2026, the Company was obligated, as the lessee, under four non-prepaid ground leases accounted for as operating leases with expiration dates, including renewal options, through 2076, and two non-prepaid ground leases accounted for as finance leases with expiration dates, including renewal options, through 2109. Any rental increases related to the Company's ground leases are generally either stated or based on the Consumer Price Index. The Company's future lease payments under these non-prepaid ground leases were as follows (in thousands):


	Operating		Financing
2026 (nine months ending December 31)	$	33	$	115
2027	45		154
2028	46		154
2029	47		154
2030	48		154
2031 and thereafter	1,007		6,493
Total undiscounted lease payments	1,226		7,224
Discount	(480)		(3,982)
Lease liabilities	$	746	$	3,242


	Three Months Ended March 31,
	2026		2025
Operating leases:
Weighted-average remaining lease term in years (including renewal options)	32.4		33.6
Weighted-average discount rate	4.0	%	4.0	%

Financing leases:
Weighted-average remaining lease term in years (including renewal options)	37.7		38.6
Weighted-average discount rate	4.3	%	4.3	%