Future Minimum Rents and Lease Payments |
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| Future Minimum Rents and Lease Payments | Future Minimum Rents and Lease Payments The Company’s properties are leased to tenants under operating leases with initial term expiration dates ranging from 2026 to 2049. The following table summarizes the future minimum base rents (excluding tenant reimbursements for operating expenses and termination fees related to tenants exercising early termination options) for properties as of June 30, 2026:
Operating Lease Agreements The Company is party to long-term non-cancellable operating lease agreements in which it is a lessee, consisting of 10 ground leases, three sound stage leases, four office leases and 16 other leases as of June 30, 2026. The weighted average remaining lease term was 22 years as of June 30, 2026. The weighted average incremental borrowing rate used to calculate the right-of-use (“ROU”) assets and lease liabilities was 5.7% as of June 30, 2026. The Company’s operating lease obligations have expiration dates ranging from 2026 through 2067, including extension options which the Company is reasonably certain to exercise. Certain leases provide for variable rental payments based on third-party appraisals of fair market land value, CPI adjustments or a percentage of annual gross income. There are no notable restrictions or covenants imposed by the leases, nor guarantees of residual value. During the three and six months ended June 30, 2026, the Company terminated three sound stage leases and recorded a loss on termination of $5.9 million. The Company also received $0.9 million of indemnification income from a third party in connection with these terminations. Both amounts are recorded in loss on lease terminations and other on the Consolidated Statements of Operations. During the three and six months ended June 30, 2026, the Company recorded an impairment charge of $19.2 million for certain of its right-of-use assets at Quixote in connection with the announced phased wind-down of its leased sound stage facilities. The fair value of the asset group, which, as discussed in Note 3, includes the related leasehold improvements, was estimated using a discounted cash flow analysis incorporating market rental rates and contractual lease terms, which is considered a Level 3 measurement. The impairment charge is recorded within impairment loss on the Consolidated Statements of Operations. As of June 30, 2026, the present value of the remaining contractual payments of $600.3 million under the Company’s operating lease agreements was $323.5 million. The corresponding operating lease ROU assets amounted to $291.4 million. The following table provides information regarding the Company’s future minimum lease payments for its operating leases (including the impact of the extension options which the Company is reasonably certain to exercise) as of June 30, 2026:
1.Future minimum lease payments for operating leases denominated in a foreign currency are translated to U.S. dollars using the exchange rate in effect as of the financial statement date. The following table summarizes rental expense for operating leases:
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| Future Minimum Rents and Lease Payments | Future Minimum Rents and Lease Payments The Company’s properties are leased to tenants under operating leases with initial term expiration dates ranging from 2026 to 2049. The following table summarizes the future minimum base rents (excluding tenant reimbursements for operating expenses and termination fees related to tenants exercising early termination options) for properties as of June 30, 2026:
Operating Lease Agreements The Company is party to long-term non-cancellable operating lease agreements in which it is a lessee, consisting of 10 ground leases, three sound stage leases, four office leases and 16 other leases as of June 30, 2026. The weighted average remaining lease term was 22 years as of June 30, 2026. The weighted average incremental borrowing rate used to calculate the right-of-use (“ROU”) assets and lease liabilities was 5.7% as of June 30, 2026. The Company’s operating lease obligations have expiration dates ranging from 2026 through 2067, including extension options which the Company is reasonably certain to exercise. Certain leases provide for variable rental payments based on third-party appraisals of fair market land value, CPI adjustments or a percentage of annual gross income. There are no notable restrictions or covenants imposed by the leases, nor guarantees of residual value. During the three and six months ended June 30, 2026, the Company terminated three sound stage leases and recorded a loss on termination of $5.9 million. The Company also received $0.9 million of indemnification income from a third party in connection with these terminations. Both amounts are recorded in loss on lease terminations and other on the Consolidated Statements of Operations. During the three and six months ended June 30, 2026, the Company recorded an impairment charge of $19.2 million for certain of its right-of-use assets at Quixote in connection with the announced phased wind-down of its leased sound stage facilities. The fair value of the asset group, which, as discussed in Note 3, includes the related leasehold improvements, was estimated using a discounted cash flow analysis incorporating market rental rates and contractual lease terms, which is considered a Level 3 measurement. The impairment charge is recorded within impairment loss on the Consolidated Statements of Operations. As of June 30, 2026, the present value of the remaining contractual payments of $600.3 million under the Company’s operating lease agreements was $323.5 million. The corresponding operating lease ROU assets amounted to $291.4 million. The following table provides information regarding the Company’s future minimum lease payments for its operating leases (including the impact of the extension options which the Company is reasonably certain to exercise) as of June 30, 2026:
1.Future minimum lease payments for operating leases denominated in a foreign currency are translated to U.S. dollars using the exchange rate in effect as of the financial statement date. The following table summarizes rental expense for operating leases:
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