v3.26.1
Note 8 - Leases - Lessee
6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Lessee, Operating Leases and Finance Lease [Text Block]

8.

Leases — Lessee

 

The table below sets forth a summary of operating lease expense for the three and six months ended June 30, 2026 and 2025 recorded in the captions within our consolidated statement of operations:

 

  

Three months ended

  

Six months ended

 
  

June 30, 2026

  

June 30, 2025

  

June 30, 2026

  

June 30, 2025

 

Ground lease expenses

 $3,857  $3,568  $7,810  $6,472 

Fuel expenses

  135   173   268   337 

General and administrative expenses

  44   28   89   56 

Total operating lease expense

 $4,036  $3,769  $8,167  $6,865 

 

The Company’s long-term ground leases have remaining terms ranging between 18 to 71 years, including options for the Company to extend the terms. These leases expire between 2044 and 2097, which include all lease extension options available to the Company. Certain of the Company’s ground leases contain options to lease additional parcels of land at the Company’s option within a specified period of time. In addition to the Company’s ground leases, the Company has operating leases for ground support vehicles and finance leases for vehicles supporting operations at its pre-engineered metal building subsidiary.

 

In January 2026, the Company, through an indirect, wholly-owned subsidiary of the Company, executed a lease amendment with respect to its ground lease at SWF to add an approximately 10 acre parcel of land to the existing lease (the “SWF Lease Amendment”). The land associated with the SWF Lease Amendment became immediately available for possession in January 2026 and is co-terminus with the other parcel covered by the Company's ground lease at SWF.

 

Supplemental consolidated cash flow information related to the Company’s leases was as follows: 

 

  

Six months ended

 
  

June 30,

  

June 30,

 
  

2026

  

2025

 

Cash paid for amounts included in measurement of lease liabilities:

        

Operating cash flows from operating leases

 $3,315  $3,219 

Operating cash flows from finance leases

  4   1 

Financing cash flows from finance leases

  29   11 

 

Supplemental consolidated balance sheet information related to the Company’s leases was as follows: 

 

Weighted Average Remaining Lease Term (in years)

 

June 30, 2026

  

December 31, 2025

 

Operating leases

        

Ground leases - Unimproved at commencement

  51.5   52.5 

Ground leases - Existing improvements

  29.5   30.1 

Equipment leases

  7.7   7.8 

Office leases

  -   0.1 

All operating leases

  44.6   44.9 

Finance leases

  2.1   2.5 
         

Weighted Average Discount Rate

        

Operating leases

        

Ground leases - Unimproved at commencement

  5.84%  5.79%

Ground leases - Existing improvements

  5.17%  5.18%

Equipment leases

  5.51%  5.51%

Office leases

  -   4.82%

All operating leases

  5.73%  5.68%

Finance leases

  6.90%  6.75%

 

The Company’s future minimum lease payments required under leases as of  June 30, 2026 were as follows: 

 

Year Ending December 31,

 

Operating Leases

  

Finance Leases

 

2026 (remainder of year)

 $3,385  $26 

2027

  8,573   45 

2028

  10,402   32 

2029

  11,146   - 

2030

  11,250   - 

Thereafter

  651,217   - 

Total lease payments

  695,973   103 

Less imputed interest

  (498,019)  (7)

Total

 $197,954  $96