Leases

6 Months Ended

Jun. 30, 2026

6. Leases

The Company as Lessor

Leasing revenue consists of rental revenue from multi-family, senior living prior to the sale of the Watercrest JV’s senior living community property in September 2025, self-storage, retail, office and commercial property, marinas, cell towers and other assets, which is recognized as earned, using the straight-line method over the life of each lease. Variable lease payments primarily include property taxes, insurance, utilities and common area maintenance or payments based on a percentage of sales over specified levels and senior living services. The Company’s leases have remaining lease terms up to the year 2072, some of which include options to terminate or extend.

The components of leasing revenue are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Leasing revenue
Lease payments	$	12,821	$	14,038	$	25,345	$	27,709
Variable lease payments		2,196		2,470		4,331		5,041
Total leasing revenue	$	15,017	$	16,508	$	29,676	$	32,750

Minimum future base rental revenue on non-cancelable leases subsequent to June 30, 2026, for the years ending December 31 are:


2026	$	20,664
2027		25,159
2028		17,018
2029		13,480
2030		9,047
Thereafter		58,445
	$	143,813

The Company as Lessee

As of June 30, 2026, the Company leased certain office and other equipment under finance leases and had operating leases for property and equipment used in corporate, hospitality and commercial operations with remaining lease terms up to the year 2081. Operating leases also include property for hospitality employee housing. Certain leases include options to purchase, terminate or renew for one or more years, which are included in the lease term used to establish right-of-use assets and lease liabilities when it is reasonably certain that the option will be exercised. The Company uses its incremental borrowing rate to determine the present value of the lease payments since the rate implicit in each lease is not readily determinable. The Company recognizes short-term (twelve months or less) lease payments in profit or loss on a straight-line basis over the term of the lease and variable lease payments in the period in which the obligation for those payments is incurred. Cash flows from operating activities include $1.0 million during each of the six months ended June 30, 2026 and 2025, related to cash paid for amounts included in the measurement of operating lease liabilities.

The components of lease expense are as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026			2025
Lease cost
Finance lease cost:
Amortization of right-of-use assets	$	88	$	55	$	175		$	105
Interest on lease liability		15		7		31			15
Operating lease cost		500		543		996			1,095
Variable and short-term lease cost		954		914		1,232			1,182
Total lease cost	$	1,557	$	1,519	$	2,434		$	2,397

Other information
Weighted-average remaining lease term - finance lease (in years)						2.3			2.4
Weighted-average remaining lease term - operating leases (in years)						1.3			1.4
Weighted-average discount rate - finance lease						5.8	%		5.6	%
Weighted-average discount rate - operating leases						5.2	%		5.1	%

The aggregate payments of finance and operating lease liabilities subsequent to June 30, 2026, for the years ending December 31 are:


	Finance Leases		Operating Leases
2026	$	202	$	991
2027		388		67
2028		284		55
2029		184		43
2030		11		43
Thereafter		4		—
Total		1,073		1,199
Less imputed interest		(92)		(19)
Total lease liabilities	$	981	$	1,180