Leases (Tables)
|
6 Months Ended |
Jun. 30, 2026 |
|---|
| Leases [Abstract] |
|
| Schedule of Components of Investment in Direct Financing Leases, Net |
The components of investment in direct financing leases, net as of June 30, 2026 and December 31, 2025 are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
June 30,
2026 |
|
|
December 31,
2025 |
|
Lease payments receivable |
|
$ |
39,337 |
|
|
$ |
44,243 |
|
Unguaranteed residual value |
|
|
7,568 |
|
|
|
7,568 |
|
Unearned Income |
|
|
(10,284 |
) |
|
|
(12,532 |
) |
Allowance for credit losses |
|
|
(426 |
) |
|
|
(426 |
) |
Total |
|
$ |
36,195 |
|
|
$ |
38,853 |
|
|
| Future Contractual Annual Rentals Receivable |
As of June 30, 2026, future contractual annual rentals receivable from our tenants, which have terms in excess of one year are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Operating
Leases |
|
|
Direct
Financing Leases |
|
2026 |
|
$ |
112,105 |
|
|
$ |
4,962 |
|
2027 |
|
|
224,521 |
|
|
|
10,089 |
|
2028 |
|
|
221,606 |
|
|
|
9,799 |
|
2029 |
|
|
220,008 |
|
|
|
8,425 |
|
2030 |
|
|
217,932 |
|
|
|
4,844 |
|
Thereafter |
|
|
1,672,191 |
|
|
|
1,218 |
|
Total |
|
$ |
2,668,363 |
|
|
$ |
39,337 |
|
|
| Schedule of Lease-related Assets and Liabilities |
The following presents the lease-related assets and liabilities (in thousands):
|
|
|
|
|
|
|
June 30,
2026 |
|
Assets |
|
|
|
Right-of-use assets - operating |
|
$ |
8,761 |
|
Right-of-use assets - finance |
|
|
37 |
|
Total lease assets |
|
$ |
8,798 |
|
Liabilities |
|
|
|
Lease liability - operating |
|
|
9,734 |
|
Lease liability - finance |
|
|
107 |
|
Total lease liabilities |
|
$ |
9,841 |
|
|
| Summary of Weighted-average Remaining Lease Terms and Discount Rates |
The following presents the weighted average lease terms and discount rates of our leases:
|
|
|
|
|
Weighted-average remaining lease term (years): |
|
|
|
Operating leases |
|
6.30 |
|
Finance leases |
|
0.75 |
|
Weighted-average discount rate: |
|
|
|
Operating leases (a) |
|
|
4.60 |
% |
Finance leases |
|
|
13.50 |
% |
(a)Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019.
|
| Schedule of Information Related to Lease Costs for Finance and Operating Leases |
The following presents our total lease costs (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended June 30, |
|
|
For the Six Months
Ended June 30, |
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Operating lease cost |
|
|
633 |
|
|
$ |
673 |
|
|
$ |
1,195 |
|
|
$ |
1,363 |
|
Finance lease cost |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of leased assets |
|
|
34 |
|
|
|
31 |
|
|
|
67 |
|
|
|
93 |
|
Interest on lease liabilities |
|
|
3 |
|
|
|
6 |
|
|
|
7 |
|
|
|
13 |
|
Short-term lease cost |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total lease cost |
|
$ |
670 |
|
|
$ |
710 |
|
|
$ |
1,269 |
|
|
$ |
1,469 |
|
|
| Schedule of Supplemental Cash Flow Information Related to Leases |
The following presents supplemental cash flow information related to our leases (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended June 30, |
|
|
For the Six Months
Ended June 30, |
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flows for operating leases |
|
$ |
663 |
|
|
$ |
701 |
|
|
$ |
1,332 |
|
|
$ |
1,419 |
|
Operating cash flows for finance leases |
|
|
3 |
|
|
|
6 |
|
|
|
7 |
|
|
|
13 |
|
Financing cash flows for finance leases |
|
|
34 |
|
|
|
31 |
|
|
|
67 |
|
|
|
93 |
|
|
| Schedule of Reconciles the Undiscounted Cash Flows for Direct Financing Lease Liabilities and Operating Lease Liabilities |
As of June 30, 2026, scheduled lease liabilities mature as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Operating
Leases |
|
|
Direct
Financing Leases |
|
2026 |
|
$ |
1,189 |
|
|
$ |
74 |
|
2027 |
|
|
2,145 |
|
|
|
37 |
|
2028 |
|
|
2,020 |
|
|
|
— |
|
2029 |
|
|
1,760 |
|
|
|
— |
|
2030 |
|
|
1,522 |
|
|
|
— |
|
Thereafter |
|
|
2,797 |
|
|
|
— |
|
Total lease payments |
|
|
11,433 |
|
|
|
111 |
|
Less: amount representing interest |
|
|
(1,699 |
) |
|
|
(4 |
) |
Present value of lease payments |
|
$ |
9,734 |
|
|
$ |
107 |
|
|
| Schedule of Significant Tenants by Revenue |
As of June 30, 2026 and 2025, we had two significant tenants by revenue:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
|
|
Number of Properties |
|
|
% of Total Revenues |
|
|
Number of Properties |
|
|
% of Total Revenues |
|
ARKO Corp. (NASDAQ: ARKO) |
|
|
148 |
|
|
|
11 |
% |
|
|
148 |
|
|
|
12 |
% |
Global Partners LP (NYSE: GLP) |
|
|
127 |
|
|
|
10 |
% |
|
|
127 |
|
|
|
10 |
% |
|