v3.26.1
Commitments and Contingencies
6 Months Ended
Jun. 30, 2026
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Lease Commitments

The Company is the lessee under several ground leases and for its corporate headquarters; all are accounted for as operating leases. Most leases include one or more options to renew, with renewal terms that can extend the lease term from 5 to 50 years. As of June 30, 2026 and 2025, the weighted average remaining lease term of our leases was 39 and 36 years, respectively. Rent expense under the operating lease agreements was $0.2 million and $0.2 million for the three months ended June 30, 2026 and 2025, respectively. Rent expense under the operating lease agreements was $0.4 million and $0.4 million for the six months ended June 30, 2026 and 2025, respectively.
Litigation

The Company is involved in various legal proceedings arising in the ordinary course of its business, including, but not limited to commercial disputes. The Company believes that such litigation, claims and administrative proceedings will not have a material adverse impact on its financial position or its results of operations. The Company records a liability when it considers the loss probable and the amount can be reasonably estimated. In addition, the below legal proceedings are in process:

Preferred stockholders of Cedar have filed a putative class action suit against the directors of Cedar prior to the Cedar Acquisition (collectively, the “Former Cedar Directors”) in the Circuit Court for Montgomery County, Maryland (the "Circuit Court") captioned Anthony Aquino, et al. v. Bruce Schanzer, et al., Case No.: C-15-CV-25-000731 (the “Aquino Action”). The Aquino Action alleges that the Former Cedar Directors breached their duties to Cedar's preferred stockholders through the Cedar Acquisition. The plaintiffs in the Aquino action have alleged as damages the decline in value of Cedar preferred stock after the Cedar Acquisition was announced. The Company has a contractual obligation to indemnify the Former Cedar Directors, including for reasonable costs and legal fees. On May 5, 2026, the parties to the Aquino Action and Wheeler entered into a term sheet to resolve the litigation subject to approval by the Circuit Court and agreement by the Circuit Court to stay the current discovery schedule. By Order entered on July 2, 2026, the Circuit Court granted preliminary approval to the settlement and scheduled a hearing for final approval on October 8, 2026 following notice to members of the settlement class and their opportunity to object. The outcome of the matter cannot be predicted if the settlement is not given final approval.

The Company has agreed to pay an amount not expected to exceed $0.9 million toward the settlement (the "Aquino Settlement"). During the quarter ended June 30, 2026, the Company recorded a liability for the loss related to the Aquino Settlement in the amount of $0.4 million included in "accounts payable, accrued expenses and other liabilities" on the condensed consolidated balance sheets.

In addition, there is a dispute between the Company and the Former Cedar Directors with respect to the amount of indemnification for their legal fees and costs. The amount in dispute is currently between $1.3 million and $1.4 million. The Company contests the demand. If the parties are unable to resolve the dispute, the applicable agreement calls for litigation to be brought in the Circuit Court for Baltimore City, Maryland. At this juncture, the outcome of the matter cannot be predicted.