PSCM has several operating lease agreements for its office, other real estate and certain equipment. PSCM’s office lease represents a significant majority of the total lease commitment; it is noncancelable and expires on January 31, 2034. PSCM has the option to extend the office lease term for an additional 15 years at the end of the initial term. Because PSCM is not reasonably certain to exercise the renewal option, the option is not considered in determining the lease term, and associated potential option payments are excluded from lease payments.

Prior to January 30, 2026, PSCM subleased a portion of its office space to NEOX Public Benefit LLC (“Subtenant” or “NEOX”), an entity affiliated with Mr. Ackman. The sublease commenced on December 5, 2022 and would have expired on December 31, 2033.

On January 30, 2026, PSCM agreed to the terms of a modified office lease agreement with the Landlord to remove the office space that PSCM has historically subleased to NEOX. Concurrently, PSCM agreed to terminate its sublease with NEOX. The terms of the modified lease and sublease took effect on March 1, 2026.

In accordance with ASC 842, the Partnership accounted for the amendment to the office lease with the Landlord as a lease modification, requiring the Partnership to recalculate the ROU asset, lease liability and lease expense over the respective lease term. The lease classification and lease term did not change.

For the three months ended March 31, 2026, the Subtenant paid $546,420 (2025: $696,757) of rent, and $113,080 (2025: $138,099) for office-related services. Both amounts are included in other income (expense).

Between 2021 and 2022, PSCM provided various landlord incentives which were capitalized as a deferred asset and amortized over the life of the lease. As of December 31, 2025, the unamortized portion of the deferred sublease incentive was $4,129,121. Following the termination of the NEOX sublease, the remaining balance of the deferred sublease incentive was recognized as a loss in other income (expense).

The following table presents the components of PSCM’s right-of-use assets and liabilities related to leases:


		March 31, 2026		December 31, 2025
Component of Lease Balances	Statements of Financial Condition Line Item
Operating lease assets	Lease right-of-use assets	$	8,030,946	$	28,440,786
Operating lease liabilities	Operating lease liabilities		21,607,859		42,672,771

The following table presents the components of PSCM’s lease cost and the classification of such costs:


		Three months ended March 31,
		2026			2025
Component of Lease Cost	Statements of Operations Line Item
Operating lease cost	General and administrative expense	$	699,287		$	1,229,262
Variable lease cost	General and administrative expense		172,758			137,028
Sublease income	Other income (expense)		(723,866	)		(1,263,805	)
Total lease expense		$	148,179		$	102,485

The following table includes the future maturities of operating lease payments for subsequent periods:


For the Years Ended December 31,	Operating Lease
2026 (Remaining)	$	2,546,335
2027		3,385,264
2028		3,190,340
2029		3,472,954
2030		3,507,973
Thereafter		10,632,285
Total future minimum lease payments	$	26,735,151
Less: liability accretion		(5,127,292	)
Total lease liabilities	$	21,607,859

The following table includes additional information related to PSCM’s operating leases:


	Three months ended March 31,
	2026			2025
Cash paid for amounts included in the measurement of operating lease liabilities	$	1,354,359		$	1,603,989
Right-of-use asset balance changes due to new / remeasured operating lease liabilities		(20,123,750	)		—
Weighted-average remaining lease term – Operating leases	7.8 years			8.8 years
Weighted-average discount rate – Operating leases		5.69	%		5.93	%