v3.26.1
Leases
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Lessee, Finance Leases

14. Leases

Lessor

We have operating leases with tenants that expire at various dates through 2050. For the three months ended June 30, 2026 and 2025, we recognized $39,124,000 and $40,546,000, respectively, of revenues related to operating lease payments, of which $8,881,000 and $9,085,000, respectively, was for variable lease payments. For the six months ended June 30, 2026 and 2025, we recognized $79,432,000 and $83,053,000, respectively, of revenues related to operating lease payments, of which $18,627,000 and $18,825,000, respectively, was for variable lease payments. As of June 30, 2026, the following table sets forth the undiscounted cash flows for future minimum base rents due under operating leases for the remaining six months ending December 31, 2026 and for each of the next four years ending December 31 and thereafter for properties that we wholly own (in thousands):

 

Year

 

Amount

 

2026

 

$

58,629

 

2027

 

 

114,690

 

2028

 

 

105,647

 

2029

 

 

94,221

 

2030

 

 

82,443

 

Thereafter

 

 

440,440

 

Total

 

$

896,070

 

 

Lessee

We lease certain land, buildings, campuses, office equipment and automobiles. We have lease agreements with lease and non-lease components, which are generally accounted for separately. Most leases include one or more options to renew, with renewal terms that generally can extend at various dates through 2107, excluding extension options. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property.

The depreciable life of assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain of our lease agreements include rental payments that are adjusted periodically based on the United States Bureau of Labor Statistics’ Consumer Price Index and may also include other variable lease

costs (i.e., common area maintenance, property taxes and insurance). Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The components of lease costs were as follows (in thousands):

 

 

 

Three Months Ended June 30,

 

Lease Cost

 

Classification

 

2026

 

 

2025

 

Operating lease cost(1)

 

Property operating expenses, rental
   expenses or general and
   administrative expenses

 

$

8,176

 

 

$

8,708

 

Finance lease cost:

 

 

 

 

 

 

 

 

Amortization of leased assets

 

Depreciation and amortization

 

 

6

 

 

 

16

 

Interest on lease liabilities

 

Interest expense

 

 

2

 

 

 

3

 

Sublease income

 

Resident fees and services revenue
   or other income

 

 

(53

)

 

 

(95

)

Total lease cost

 

 

 

$

8,131

 

 

$

8,632

 

 

 

 

 

Six Months Ended June 30,

 

Lease Cost

 

Classification

 

2026

 

 

2025

 

Operating lease cost(1)

 

Property operating expenses, rental
   expenses or general and
   administrative expenses

 

$

16,373

 

 

$

17,649

 

Finance lease cost:

 

 

 

 

 

 

 

 

Amortization of leased assets

 

Depreciation and amortization

 

 

13

 

 

 

32

 

Interest on lease liabilities

 

Interest expense

 

 

4

 

 

 

7

 

Sublease income

 

Resident fees and services revenue
   or other income

 

 

(106

)

 

 

(236

)

Total lease cost

 

 

 

$

16,284

 

 

$

17,452

 

 

(1)
Includes short-term leases and variable lease costs, which are immaterial.

Additional information related to our leases for the periods presented below was as follows (dollars in thousands):

 

Lease Term and Discount Rate

 

June 30,
2026

 

 

December 31,
2025

 

Weighted average remaining lease term (in years):

 

 

 

 

 

 

Operating leases

 

 

11.1

 

 

 

11.4

 

Finance leases

 

 

3.1

 

 

 

3.6

 

Weighted average discount rate:

 

 

 

 

 

 

Operating leases

 

 

5.86

%

 

 

5.85

%

Finance leases

 

 

11.25

%

 

 

11.25

%

 

 

Six Months Ended June 30,

 

Supplemental Disclosure of Cash Flows Information

 

2026

 

 

2025

 

Operating cash outflows related to finance leases

 

$

4

 

 

$

7

 

Financing cash outflows related to finance leases

 

$

14

 

 

$

29

 

Right-of-use assets obtained in exchange for operating lease liabilities

 

$

185

 

 

$

1,281

 

 

Operating Leases

As of June 30, 2026, the following table sets forth the undiscounted cash flows of our scheduled obligations for future minimum payments for the remaining six months ending December 31, 2026 and for each of the next four years ending December 31 and thereafter, as well as the reconciliation of those cash flows to operating lease liabilities on our accompanying condensed consolidated balance sheet (in thousands):

 

Year

 

Amount

 

2026

 

$

14,283

 

2027

 

 

29,090

 

2028

 

 

29,419

 

2029

 

 

28,515

 

2030

 

 

26,625

 

Thereafter

 

 

66,129

 

Total undiscounted operating lease payments

 

 

194,061

 

Less: interest

 

 

(69,202

)

Present value of operating lease liabilities

 

$

124,859

 

 

Finance Leases and Financing Obligations

As of June 30, 2026, the following table sets forth the undiscounted cash flows of our scheduled obligations for future minimum payments for the remaining six months ending December 31, 2026 and for each of the next four years ending December 31 and thereafter, as well as a reconciliation of those cash flows to finance lease liabilities and financing obligations (in thousands):

 

Year

 

Amount

 

2026

 

$

1,532

 

2027

 

 

2,846

 

2028

 

 

2,465

 

2029

 

 

19,245

 

2030

 

 

92

 

Thereafter

 

 

—

 

Total undiscounted payments

 

 

26,180

 

Less: interest

 

 

(6,853

)

Present value of finance lease liabilities and financing obligations

 

$

19,327

 
Lessor, Operating Leases

14. Leases

Lessor

We have operating leases with tenants that expire at various dates through 2050. For the three months ended June 30, 2026 and 2025, we recognized $39,124,000 and $40,546,000, respectively, of revenues related to operating lease payments, of which $8,881,000 and $9,085,000, respectively, was for variable lease payments. For the six months ended June 30, 2026 and 2025, we recognized $79,432,000 and $83,053,000, respectively, of revenues related to operating lease payments, of which $18,627,000 and $18,825,000, respectively, was for variable lease payments. As of June 30, 2026, the following table sets forth the undiscounted cash flows for future minimum base rents due under operating leases for the remaining six months ending December 31, 2026 and for each of the next four years ending December 31 and thereafter for properties that we wholly own (in thousands):

 

Year

 

Amount

 

2026

 

$

58,629

 

2027

 

 

114,690

 

2028

 

 

105,647

 

2029

 

 

94,221

 

2030

 

 

82,443

 

Thereafter

 

 

440,440

 

Total

 

$

896,070

 

 

Lessee

We lease certain land, buildings, campuses, office equipment and automobiles. We have lease agreements with lease and non-lease components, which are generally accounted for separately. Most leases include one or more options to renew, with renewal terms that generally can extend at various dates through 2107, excluding extension options. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property.

The depreciable life of assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain of our lease agreements include rental payments that are adjusted periodically based on the United States Bureau of Labor Statistics’ Consumer Price Index and may also include other variable lease

costs (i.e., common area maintenance, property taxes and insurance). Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The components of lease costs were as follows (in thousands):

 

 

 

Three Months Ended June 30,

 

Lease Cost

 

Classification

 

2026

 

 

2025

 

Operating lease cost(1)

 

Property operating expenses, rental
   expenses or general and
   administrative expenses

 

$

8,176

 

 

$

8,708

 

Finance lease cost:

 

 

 

 

 

 

 

 

Amortization of leased assets

 

Depreciation and amortization

 

 

6

 

 

 

16

 

Interest on lease liabilities

 

Interest expense

 

 

2

 

 

 

3

 

Sublease income

 

Resident fees and services revenue
   or other income

 

 

(53

)

 

 

(95

)

Total lease cost

 

 

 

$

8,131

 

 

$

8,632

 

 

 

 

 

Six Months Ended June 30,

 

Lease Cost

 

Classification

 

2026

 

 

2025

 

Operating lease cost(1)

 

Property operating expenses, rental
   expenses or general and
   administrative expenses

 

$

16,373

 

 

$

17,649

 

Finance lease cost:

 

 

 

 

 

 

 

 

Amortization of leased assets

 

Depreciation and amortization

 

 

13

 

 

 

32

 

Interest on lease liabilities

 

Interest expense

 

 

4

 

 

 

7

 

Sublease income

 

Resident fees and services revenue
   or other income

 

 

(106

)

 

 

(236

)

Total lease cost

 

 

 

$

16,284

 

 

$

17,452

 

 

(1)
Includes short-term leases and variable lease costs, which are immaterial.

Additional information related to our leases for the periods presented below was as follows (dollars in thousands):

 

Lease Term and Discount Rate

 

June 30,
2026

 

 

December 31,
2025

 

Weighted average remaining lease term (in years):

 

 

 

 

 

 

Operating leases

 

 

11.1

 

 

 

11.4

 

Finance leases

 

 

3.1

 

 

 

3.6

 

Weighted average discount rate:

 

 

 

 

 

 

Operating leases

 

 

5.86

%

 

 

5.85

%

Finance leases

 

 

11.25

%

 

 

11.25

%

 

 

Six Months Ended June 30,

 

Supplemental Disclosure of Cash Flows Information

 

2026

 

 

2025

 

Operating cash outflows related to finance leases

 

$

4

 

 

$

7

 

Financing cash outflows related to finance leases

 

$

14

 

 

$

29

 

Right-of-use assets obtained in exchange for operating lease liabilities

 

$

185

 

 

$

1,281

 

 

Operating Leases

As of June 30, 2026, the following table sets forth the undiscounted cash flows of our scheduled obligations for future minimum payments for the remaining six months ending December 31, 2026 and for each of the next four years ending December 31 and thereafter, as well as the reconciliation of those cash flows to operating lease liabilities on our accompanying condensed consolidated balance sheet (in thousands):

 

Year

 

Amount

 

2026

 

$

14,283

 

2027

 

 

29,090

 

2028

 

 

29,419

 

2029

 

 

28,515

 

2030

 

 

26,625

 

Thereafter

 

 

66,129

 

Total undiscounted operating lease payments

 

 

194,061

 

Less: interest

 

 

(69,202

)

Present value of operating lease liabilities

 

$

124,859

 

 

Finance Leases and Financing Obligations

As of June 30, 2026, the following table sets forth the undiscounted cash flows of our scheduled obligations for future minimum payments for the remaining six months ending December 31, 2026 and for each of the next four years ending December 31 and thereafter, as well as a reconciliation of those cash flows to finance lease liabilities and financing obligations (in thousands):

 

Year

 

Amount

 

2026

 

$

1,532

 

2027

 

 

2,846

 

2028

 

 

2,465

 

2029

 

 

19,245

 

2030

 

 

92

 

Thereafter

 

 

—

 

Total undiscounted payments

 

 

26,180

 

Less: interest

 

 

(6,853

)

Present value of finance lease liabilities and financing obligations

 

$

19,327

 
Lessee, Operating Leases

14. Leases

Lessor

We have operating leases with tenants that expire at various dates through 2050. For the three months ended June 30, 2026 and 2025, we recognized $39,124,000 and $40,546,000, respectively, of revenues related to operating lease payments, of which $8,881,000 and $9,085,000, respectively, was for variable lease payments. For the six months ended June 30, 2026 and 2025, we recognized $79,432,000 and $83,053,000, respectively, of revenues related to operating lease payments, of which $18,627,000 and $18,825,000, respectively, was for variable lease payments. As of June 30, 2026, the following table sets forth the undiscounted cash flows for future minimum base rents due under operating leases for the remaining six months ending December 31, 2026 and for each of the next four years ending December 31 and thereafter for properties that we wholly own (in thousands):

 

Year

 

Amount

 

2026

 

$

58,629

 

2027

 

 

114,690

 

2028

 

 

105,647

 

2029

 

 

94,221

 

2030

 

 

82,443

 

Thereafter

 

 

440,440

 

Total

 

$

896,070

 

 

Lessee

We lease certain land, buildings, campuses, office equipment and automobiles. We have lease agreements with lease and non-lease components, which are generally accounted for separately. Most leases include one or more options to renew, with renewal terms that generally can extend at various dates through 2107, excluding extension options. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property.

The depreciable life of assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain of our lease agreements include rental payments that are adjusted periodically based on the United States Bureau of Labor Statistics’ Consumer Price Index and may also include other variable lease

costs (i.e., common area maintenance, property taxes and insurance). Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The components of lease costs were as follows (in thousands):

 

 

 

Three Months Ended June 30,

 

Lease Cost

 

Classification

 

2026

 

 

2025

 

Operating lease cost(1)

 

Property operating expenses, rental
   expenses or general and
   administrative expenses

 

$

8,176

 

 

$

8,708

 

Finance lease cost:

 

 

 

 

 

 

 

 

Amortization of leased assets

 

Depreciation and amortization

 

 

6

 

 

 

16

 

Interest on lease liabilities

 

Interest expense

 

 

2

 

 

 

3

 

Sublease income

 

Resident fees and services revenue
   or other income

 

 

(53

)

 

 

(95

)

Total lease cost

 

 

 

$

8,131

 

 

$

8,632

 

 

 

 

 

Six Months Ended June 30,

 

Lease Cost

 

Classification

 

2026

 

 

2025

 

Operating lease cost(1)

 

Property operating expenses, rental
   expenses or general and
   administrative expenses

 

$

16,373

 

 

$

17,649

 

Finance lease cost:

 

 

 

 

 

 

 

 

Amortization of leased assets

 

Depreciation and amortization

 

 

13

 

 

 

32

 

Interest on lease liabilities

 

Interest expense

 

 

4

 

 

 

7

 

Sublease income

 

Resident fees and services revenue
   or other income

 

 

(106

)

 

 

(236

)

Total lease cost

 

 

 

$

16,284

 

 

$

17,452

 

 

(1)
Includes short-term leases and variable lease costs, which are immaterial.

Additional information related to our leases for the periods presented below was as follows (dollars in thousands):

 

Lease Term and Discount Rate

 

June 30,
2026

 

 

December 31,
2025

 

Weighted average remaining lease term (in years):

 

 

 

 

 

 

Operating leases

 

 

11.1

 

 

 

11.4

 

Finance leases

 

 

3.1

 

 

 

3.6

 

Weighted average discount rate:

 

 

 

 

 

 

Operating leases

 

 

5.86

%

 

 

5.85

%

Finance leases

 

 

11.25

%

 

 

11.25

%

 

 

Six Months Ended June 30,

 

Supplemental Disclosure of Cash Flows Information

 

2026

 

 

2025

 

Operating cash outflows related to finance leases

 

$

4

 

 

$

7

 

Financing cash outflows related to finance leases

 

$

14

 

 

$

29

 

Right-of-use assets obtained in exchange for operating lease liabilities

 

$

185

 

 

$

1,281

 

 

Operating Leases

As of June 30, 2026, the following table sets forth the undiscounted cash flows of our scheduled obligations for future minimum payments for the remaining six months ending December 31, 2026 and for each of the next four years ending December 31 and thereafter, as well as the reconciliation of those cash flows to operating lease liabilities on our accompanying condensed consolidated balance sheet (in thousands):

 

Year

 

Amount

 

2026

 

$

14,283

 

2027

 

 

29,090

 

2028

 

 

29,419

 

2029

 

 

28,515

 

2030

 

 

26,625

 

Thereafter

 

 

66,129

 

Total undiscounted operating lease payments

 

 

194,061

 

Less: interest

 

 

(69,202

)

Present value of operating lease liabilities

 

$

124,859

 

 

Finance Leases and Financing Obligations

As of June 30, 2026, the following table sets forth the undiscounted cash flows of our scheduled obligations for future minimum payments for the remaining six months ending December 31, 2026 and for each of the next four years ending December 31 and thereafter, as well as a reconciliation of those cash flows to finance lease liabilities and financing obligations (in thousands):

 

Year

 

Amount

 

2026

 

$

1,532

 

2027

 

 

2,846

 

2028

 

 

2,465

 

2029

 

 

19,245

 

2030

 

 

92

 

Thereafter

 

 

—

 

Total undiscounted payments

 

 

26,180

 

Less: interest

 

 

(6,853

)

Present value of finance lease liabilities and financing obligations

 

$

19,327