v3.26.1
Leases
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases Leases
Lessor
The Company’s rental revenue primarily consists of rent earned from operating leases at the Company’s rental housing, industrial, data centers, net lease, office and retail properties. The Company's rental revenue also includes rent earned from operating leases at the Company's self storage properties prior to their sale in May 2026. Leases at the Company’s industrial, data centers, office and retail properties generally include a fixed base rent, and certain leases also contain a variable rent component. The variable component of the Company’s operating leases at its industrial, data centers, office and retail properties primarily consist of the reimbursement of operating expenses such as real estate taxes, insurance, and common area maintenance costs. Rental revenue earned from leases at the Company’s rental housing properties primarily consist of a fixed base rent, and certain leases contain a variable component that allows for the pass-through of certain operating expenses such as utilities. Rental revenue earned from leases at the Company’s self storage properties primarily consist of a fixed base rent only.
Rental revenue from leases at the Company’s net lease properties consists of a fixed annual rent that escalates annually throughout the term of the applicable leases, and the tenant is generally responsible for all property-related expenses, including taxes, insurance, and maintenance. The Company’s net lease properties are leased to a single tenant. The Company assessed the lease classification of the net lease properties and determined the leases were each operating leases. The Company’s assessment included the consideration of the present value of the applicable lease payments over the lease terms and the residual value of the leased assets.
Leases at the Company’s industrial, data centers, net lease, office and retail properties are generally longer term (greater than 12 months in length), and may contain extension and termination options at the lessee’s election. Often, these leases have annual escalations that are tied to the consumer price index. Leases at the Company’s rental housing properties are short term, generally not greater than 12 months in length.
The following table details the components of operating lease income from leases in which the Company is the lessor ($ in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Fixed lease payments$1,504,457 $1,637,212 $3,086,130 $3,325,392 
Variable lease payments124,648 133,448 264,229 277,657 
Rental revenue$1,629,105 $1,770,660 $3,350,359 $3,603,049 
The following table presents the undiscounted future minimum rents the Company expects to receive for its industrial, data centers, net lease, retail, and office properties as of June 30, 2026 ($ in thousands). Leases at the Company’s rental housing properties are short term, generally 12 months or less, and are therefore not included.
YearFuture Minimum Rents
2026 (remaining)$842,294 
20271,624,579 
20281,482,817 
20291,305,682 
20301,132,601 
2031650,424 
Thereafter13,947,775 
Total$20,986,172 
Lessee
Certain of the Company’s investments in real estate are subject to ground leases. The Company’s ground leases are classified as either operating leases or financing leases based on the characteristics of each lease. As of June 30, 2026, the Company had 86 ground leases classified as operating and three ground leases classified as financing. Each of the Company’s ground leases was acquired as part of the acquisition of real estate, and no incremental costs were incurred for such ground leases. The Company’s ground leases are non-cancelable and certain operating leases contain renewal options.
The following table details the future lease payments due under the Company’s ground leases as of June 30, 2026 ($ in thousands):
Operating
Leases		Financing
Leases
2026 (remaining)$20,182 $2,283 
202736,454 4,633 
202836,739 4,763 
202936,861 4,896 
203037,037 5,033 
203137,065 5,173 
Thereafter1,997,821 544,292 
Total undiscounted future lease payments2,202,159 571,073 
Difference between undiscounted cash flows and discounted cash flows(1,593,593)(489,796)
Total lease liability$608,566 $81,277 
The Company utilized its incremental borrowing rate at the time of entering such leases, which was between 5% and 7%, to determine its lease liabilities. As of June 30, 2026, the weighted average remaining lease term of the Company’s operating leases and financing leases were 58 years and 75 years, respectively.
Payments under the Company’s ground leases primarily contain fixed payment components that may include periodic increases based on an index or periodic fixed percentage escalations. Three of the Company’s ground leases contain a variable component based on a percentage of revenue.
The following table details the fixed and variable components of the Company’s operating leases ($ in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Fixed ground rent expense$3,406 $3,393 $6,971 $7,027 
Variable ground rent expense10,302 9,483 20,040 18,488 
Total cash portion of ground rent expense13,708 12,876 27,011 25,515 
Straight-line ground rent expense4,375 4,343 8,473 9,213 
Total operating lease costs$18,083 $17,219 $35,484 $34,728 
The following table details the fixed and variable components of the Company’s financing leases ($ in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Interest on lease liabilities$1,125 $1,079 $2,246 $2,166 
Amortization of right-of-use assets337 309 673 613 
Total financing lease costs$1,462 $1,388 $2,919 $2,779 
Leases Leases
Lessor
The Company’s rental revenue primarily consists of rent earned from operating leases at the Company’s rental housing, industrial, data centers, net lease, office and retail properties. The Company's rental revenue also includes rent earned from operating leases at the Company's self storage properties prior to their sale in May 2026. Leases at the Company’s industrial, data centers, office and retail properties generally include a fixed base rent, and certain leases also contain a variable rent component. The variable component of the Company’s operating leases at its industrial, data centers, office and retail properties primarily consist of the reimbursement of operating expenses such as real estate taxes, insurance, and common area maintenance costs. Rental revenue earned from leases at the Company’s rental housing properties primarily consist of a fixed base rent, and certain leases contain a variable component that allows for the pass-through of certain operating expenses such as utilities. Rental revenue earned from leases at the Company’s self storage properties primarily consist of a fixed base rent only.
Rental revenue from leases at the Company’s net lease properties consists of a fixed annual rent that escalates annually throughout the term of the applicable leases, and the tenant is generally responsible for all property-related expenses, including taxes, insurance, and maintenance. The Company’s net lease properties are leased to a single tenant. The Company assessed the lease classification of the net lease properties and determined the leases were each operating leases. The Company’s assessment included the consideration of the present value of the applicable lease payments over the lease terms and the residual value of the leased assets.
Leases at the Company’s industrial, data centers, net lease, office and retail properties are generally longer term (greater than 12 months in length), and may contain extension and termination options at the lessee’s election. Often, these leases have annual escalations that are tied to the consumer price index. Leases at the Company’s rental housing properties are short term, generally not greater than 12 months in length.
The following table details the components of operating lease income from leases in which the Company is the lessor ($ in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Fixed lease payments$1,504,457 $1,637,212 $3,086,130 $3,325,392 
Variable lease payments124,648 133,448 264,229 277,657 
Rental revenue$1,629,105 $1,770,660 $3,350,359 $3,603,049 
The following table presents the undiscounted future minimum rents the Company expects to receive for its industrial, data centers, net lease, retail, and office properties as of June 30, 2026 ($ in thousands). Leases at the Company’s rental housing properties are short term, generally 12 months or less, and are therefore not included.
YearFuture Minimum Rents
2026 (remaining)$842,294 
20271,624,579 
20281,482,817 
20291,305,682 
20301,132,601 
2031650,424 
Thereafter13,947,775 
Total$20,986,172 
Lessee
Certain of the Company’s investments in real estate are subject to ground leases. The Company’s ground leases are classified as either operating leases or financing leases based on the characteristics of each lease. As of June 30, 2026, the Company had 86 ground leases classified as operating and three ground leases classified as financing. Each of the Company’s ground leases was acquired as part of the acquisition of real estate, and no incremental costs were incurred for such ground leases. The Company’s ground leases are non-cancelable and certain operating leases contain renewal options.
The following table details the future lease payments due under the Company’s ground leases as of June 30, 2026 ($ in thousands):
Operating
Leases		Financing
Leases
2026 (remaining)$20,182 $2,283 
202736,454 4,633 
202836,739 4,763 
202936,861 4,896 
203037,037 5,033 
203137,065 5,173 
Thereafter1,997,821 544,292 
Total undiscounted future lease payments2,202,159 571,073 
Difference between undiscounted cash flows and discounted cash flows(1,593,593)(489,796)
Total lease liability$608,566 $81,277 
The Company utilized its incremental borrowing rate at the time of entering such leases, which was between 5% and 7%, to determine its lease liabilities. As of June 30, 2026, the weighted average remaining lease term of the Company’s operating leases and financing leases were 58 years and 75 years, respectively.
Payments under the Company’s ground leases primarily contain fixed payment components that may include periodic increases based on an index or periodic fixed percentage escalations. Three of the Company’s ground leases contain a variable component based on a percentage of revenue.
The following table details the fixed and variable components of the Company’s operating leases ($ in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Fixed ground rent expense$3,406 $3,393 $6,971 $7,027 
Variable ground rent expense10,302 9,483 20,040 18,488 
Total cash portion of ground rent expense13,708 12,876 27,011 25,515 
Straight-line ground rent expense4,375 4,343 8,473 9,213 
Total operating lease costs$18,083 $17,219 $35,484 $34,728 
The following table details the fixed and variable components of the Company’s financing leases ($ in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Interest on lease liabilities$1,125 $1,079 $2,246 $2,166 
Amortization of right-of-use assets337 309 673 613 
Total financing lease costs$1,462 $1,388 $2,919 $2,779