Leases |
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| Leases | Leases Lessor The Company, as Lessor, leases industrial properties to tenants primarily under non-cancelable operating leases that generally contain provisions for minimum base rents plus reimbursement for certain operating expenses including, without limitation, real estate taxes, insurance, common area maintenance (“Recoverable Operating Expenses”). Total minimum annual lease payments are recognized in rental income on a straight-line basis over the term of the related lease. On a quarterly basis, we perform an assessment of the collectability of operating lease receivables on a tenant-by-tenant basis, which includes reviewing the age and nature of our receivables, the payment history and financial condition of the tenant, our assessment of the tenant’s ability to meet its lease obligations and the status of negotiations of any disputes with the tenant. Any changes in the collectability assessment for an operating lease is recognized as an adjustment, which can be a reduction or increase, to rental income in the consolidated statements of operations. Estimated reimbursements from tenants for Recoverable Operating Expenses are recognized in rental income in the period that the expenses are incurred. The Company recognized $22.7 million and $25.0 million of lease income related to operating lease payments for the three months ended March 31, 2026 and 2025, respectively. For its Office Discontinued Operations Properties in prior period, the Company recognized $25.1 million of lease income related to operating lease payments for the three months ended March 31, 2025, which is included within income (loss) from discontinued operations within the consolidated statements of operations. The Company's current third-party tenant leases have expirations ranging from 2026 to 2038. The following table (i) sets forth undiscounted cash flows for future contractual base rents to be received under operating leases as of March 31, 2026 and (ii) excludes estimated reimbursements of Recoverable Operating Expenses:
Lessee - Corporate Office Leases As of March 31, 2026, the Operating Partnership or a wholly-owned subsidiary is the tenant (lessee) under the following two corporate office space leases, each of which is classified as a non-cancelable operating lease: (i) a lease for its corporate headquarters in El Segundo, California, which commenced on March 30, 2026 and resulted in a right-of-use lease asset and liability of $4.2 million, (“El Segundo HQ Lease”) and (ii) a lease for its office space in Chicago, Illinois (“Chicago Office Lease”). For corporate office leases in which the Company is a lessee, the Company incurred costs of approximately $0.2 million and $0.2 million for each of the three months ended March 31, 2026 and 2025, respectively, which are included in “General and administrative expenses” and “Corporate operating expenses to related parties” as applicable, in the accompanying consolidated statement of operations. Total cash paid for amounts included in the measurement of operating lease liabilities for the corporate office leases was $0.2 million and $0.2 million for each of the three months ended March 31, 2026 and 2025, respectively. The following table sets forth the weighted-average for the lease term and the discount rate for the office leases in which the Company is a lessee as of March 31, 2026:
(1)Because the rate implicit in each of the Company's leases was not readily determinable, the Company used an incremental borrowing rate. In determining the Company's incremental borrowing rate at the commencement of each lease, the Company considered rates on secured borrowings, observable risk-free interest rates and credit spreads correlating to the Company's creditworthiness, the impact of collateralization and the term of each of the Company's lease agreements. Lessee - Maturities of Lease Liabilities The maturities of lease liabilities for the Company’s operating leases as of March 31, 2026 were as follows:
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| Leases | Leases Lessor The Company, as Lessor, leases industrial properties to tenants primarily under non-cancelable operating leases that generally contain provisions for minimum base rents plus reimbursement for certain operating expenses including, without limitation, real estate taxes, insurance, common area maintenance (“Recoverable Operating Expenses”). Total minimum annual lease payments are recognized in rental income on a straight-line basis over the term of the related lease. On a quarterly basis, we perform an assessment of the collectability of operating lease receivables on a tenant-by-tenant basis, which includes reviewing the age and nature of our receivables, the payment history and financial condition of the tenant, our assessment of the tenant’s ability to meet its lease obligations and the status of negotiations of any disputes with the tenant. Any changes in the collectability assessment for an operating lease is recognized as an adjustment, which can be a reduction or increase, to rental income in the consolidated statements of operations. Estimated reimbursements from tenants for Recoverable Operating Expenses are recognized in rental income in the period that the expenses are incurred. The Company recognized $22.7 million and $25.0 million of lease income related to operating lease payments for the three months ended March 31, 2026 and 2025, respectively. For its Office Discontinued Operations Properties in prior period, the Company recognized $25.1 million of lease income related to operating lease payments for the three months ended March 31, 2025, which is included within income (loss) from discontinued operations within the consolidated statements of operations. The Company's current third-party tenant leases have expirations ranging from 2026 to 2038. The following table (i) sets forth undiscounted cash flows for future contractual base rents to be received under operating leases as of March 31, 2026 and (ii) excludes estimated reimbursements of Recoverable Operating Expenses:
Lessee - Corporate Office Leases As of March 31, 2026, the Operating Partnership or a wholly-owned subsidiary is the tenant (lessee) under the following two corporate office space leases, each of which is classified as a non-cancelable operating lease: (i) a lease for its corporate headquarters in El Segundo, California, which commenced on March 30, 2026 and resulted in a right-of-use lease asset and liability of $4.2 million, (“El Segundo HQ Lease”) and (ii) a lease for its office space in Chicago, Illinois (“Chicago Office Lease”). For corporate office leases in which the Company is a lessee, the Company incurred costs of approximately $0.2 million and $0.2 million for each of the three months ended March 31, 2026 and 2025, respectively, which are included in “General and administrative expenses” and “Corporate operating expenses to related parties” as applicable, in the accompanying consolidated statement of operations. Total cash paid for amounts included in the measurement of operating lease liabilities for the corporate office leases was $0.2 million and $0.2 million for each of the three months ended March 31, 2026 and 2025, respectively. The following table sets forth the weighted-average for the lease term and the discount rate for the office leases in which the Company is a lessee as of March 31, 2026:
(1)Because the rate implicit in each of the Company's leases was not readily determinable, the Company used an incremental borrowing rate. In determining the Company's incremental borrowing rate at the commencement of each lease, the Company considered rates on secured borrowings, observable risk-free interest rates and credit spreads correlating to the Company's creditworthiness, the impact of collateralization and the term of each of the Company's lease agreements. Lessee - Maturities of Lease Liabilities The maturities of lease liabilities for the Company’s operating leases as of March 31, 2026 were as follows:
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