v3.26.1
LEASES
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
LEASES
NOTE 11 — LEASES
The Company acts as both a lessor and lessee in the ordinary course of business. The Company's lease activities consist primarily of (i) operating leases associated with its real estate assets within Strategic Holdings and (ii) office leases for corporate and real assets management operations.
Lessor Activities
The Company’s real estate assets are leased to tenants under operating leases. As of June 30, 2026, the Company’s leases had a weighted-average remaining term of 10 years.
As of June 30, 2026, the future minimum rental income from the Company’s real estate assets under non-cancelable operating leases, assuming no exercise of renewal options for the succeeding five fiscal years and thereafter, was as follows (in thousands):
Future Minimum Rental Income
Remainder of 2026
$
46,898 
2027
94,050 
2028
91,181 
2029
90,029 
2030
88,536 
Thereafter
628,493 
Total
$
1,039,187 
Contingent rent earned by the Company for the three and six months ended June 30, 2026 and 2025 was not significant.
Rental and other property income during the three and six months ended June 30, 2026 and 2025 is included in revenues from consolidated investments in the accompanying condensed combined and consolidated statements of operations and consisted of the following (in thousands):
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Fixed rental and other property income (1)
$
1,844 
$
(37)
$
1,918 
$
38 
Variable rental and other property income (2)
174 
— 
174 
— 
Total rental and other property income
$
2,018 
$
(37)
$
2,092 
$
38 
__________________________________
(1)Consists primarily of fixed contractual payments from operating leases with tenants recognized on a straight-line basis over the lease term, including amortization of acquired above- and below-market leases, and is net of uncollectible lease-related receivables.
(2)Consists primarily of tenant reimbursements for recoverable real estate taxes and property operating expenses, and percentage rent.
Lessee Activities
The Company has operating lease agreements in which the Company is the lessee, primarily consisting of office leases. The tables below present certain supplemental quantitative disclosures regarding the Company’s operating leases (in thousands):
Maturity of Operating Lease Liabilities
Remainder of 2026
$
2,983 
2027
6,037 
2028
6,087 
2029
5,634 
2030
4,269 
Thereafter
9,561 
Total future payments
34,571 
Less: interest
(4,209)
Total operating lease liabilities
$
30,362 
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Fixed lease costs
$
1,313 
$
1,392 
$
2,627 
$
2,779 
Variable lease costs
496 
397 
1,130 
796 
Sublease income (1)
(337)
— 
(627)
— 
Total operating lease costs (1)
$
1,472 
$
1,789 
$
3,130 
$
3,575 
____________________________________
(1)Included in general and administrative in the accompanying condensed combined and consolidated statements of operations.
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Cash payments for operating leases
$
1,395 
$
1,468 
$
2,715 
$
2,907 
New operating lease right-of-use assets obtained in exchange for operating lease liabilities
$
— 
$
— 
$
— 
$
16,202 
As of June 30,
As of December 31,
2026
2025
Weighted-average remaining lease terms (in years)
6.3
6.6
Weighted-average discount rate
3.8 
%
3.8 
%
LEASES
NOTE 11 — LEASES
The Company acts as both a lessor and lessee in the ordinary course of business. The Company's lease activities consist primarily of (i) operating leases associated with its real estate assets within Strategic Holdings and (ii) office leases for corporate and real assets management operations.
Lessor Activities
The Company’s real estate assets are leased to tenants under operating leases. As of June 30, 2026, the Company’s leases had a weighted-average remaining term of 10 years.
As of June 30, 2026, the future minimum rental income from the Company’s real estate assets under non-cancelable operating leases, assuming no exercise of renewal options for the succeeding five fiscal years and thereafter, was as follows (in thousands):
Future Minimum Rental Income
Remainder of 2026
$
46,898 
2027
94,050 
2028
91,181 
2029
90,029 
2030
88,536 
Thereafter
628,493 
Total
$
1,039,187 
Contingent rent earned by the Company for the three and six months ended June 30, 2026 and 2025 was not significant.
Rental and other property income during the three and six months ended June 30, 2026 and 2025 is included in revenues from consolidated investments in the accompanying condensed combined and consolidated statements of operations and consisted of the following (in thousands):
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Fixed rental and other property income (1)
$
1,844 
$
(37)
$
1,918 
$
38 
Variable rental and other property income (2)
174 
— 
174 
— 
Total rental and other property income
$
2,018 
$
(37)
$
2,092 
$
38 
__________________________________
(1)Consists primarily of fixed contractual payments from operating leases with tenants recognized on a straight-line basis over the lease term, including amortization of acquired above- and below-market leases, and is net of uncollectible lease-related receivables.
(2)Consists primarily of tenant reimbursements for recoverable real estate taxes and property operating expenses, and percentage rent.
Lessee Activities
The Company has operating lease agreements in which the Company is the lessee, primarily consisting of office leases. The tables below present certain supplemental quantitative disclosures regarding the Company’s operating leases (in thousands):
Maturity of Operating Lease Liabilities
Remainder of 2026
$
2,983 
2027
6,037 
2028
6,087 
2029
5,634 
2030
4,269 
Thereafter
9,561 
Total future payments
34,571 
Less: interest
(4,209)
Total operating lease liabilities
$
30,362 
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Fixed lease costs
$
1,313 
$
1,392 
$
2,627 
$
2,779 
Variable lease costs
496 
397 
1,130 
796 
Sublease income (1)
(337)
— 
(627)
— 
Total operating lease costs (1)
$
1,472 
$
1,789 
$
3,130 
$
3,575 
____________________________________
(1)Included in general and administrative in the accompanying condensed combined and consolidated statements of operations.
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Cash payments for operating leases
$
1,395 
$
1,468 
$
2,715 
$
2,907 
New operating lease right-of-use assets obtained in exchange for operating lease liabilities
$
— 
$
— 
$
— 
$
16,202 
As of June 30,
As of December 31,
2026
2025
Weighted-average remaining lease terms (in years)
6.3
6.6
Weighted-average discount rate
3.8 
%
3.8 
%