During the second quarter of 2026, we and WE, along with an unaffiliated utility, acquired various land leases related to our investments in utility solar generation. Each lease has an initial term and one or more optional extensions. We expect the optional extensions to be exercised, and, as a result, all of the land leases are being amortized over an extended term. The weighted-average remaining lease term for these land leases was 49.3 years at June 30, 2026. Once a solar project achieves commercial operation, the lease liability will be remeasured to reflect the final total acres being leased.

The right of use assets obtained in exchange for these finance lease liabilities was $4.8 million. Our total obligation under these land-related leases was $4.8 million at June 30, 2026, and was included in finance lease obligations on our balance sheet. Our finance lease right of use asset related to these leases was $4.8 million as of June 30, 2026, and was included in property, plant, and equipment on our balance sheet. Our weighted-average discount rate for these leases was 6.35%. We used an estimate of the fully collateralized incremental borrowing rate based upon information available for similarly rated companies in determining the present value of lease payments.

Future minimum lease payments and the corresponding present value of our net minimum lease payments under these land-related leases as of June 30, 2026, were as follows:


(in millions)
Six Months Ended December 31, 2026	$	0.1
2027	0.2
2028	0.2
2029	0.3
2030	0.3
2031	0.3
Thereafter	18.0
Total minimum lease payments	19.4
Less: Interest	(14.6)
Present value of minimum lease payments	4.8
Less: Short-term lease liabilities	—
Long-term lease liabilities	$	4.8