In all leases, whether we are the lessor or lessee, we define lease term as the non-cancellable term of the lease plus any renewals covered by renewal options that are reasonably certain of exercise based on our assessment of economic factors relevant to the lessee. The non-cancellable term of the lease commences on the date the lessor makes the underlying property in the lease available to the lessee, irrespective of when lease payments begin under the contract.

We have operating leases for certain cinemas, and finance leases for certain equipment assets. Our leases have remaining lease terms of 1 to 25 years, with certain leases having options to extend up to a further 20 years. Lease payments for our cinema operating leases consist of fixed base rent, and for certain leases, variable lease payments consisting of contracted percentages of revenue, changes in the relevant CPI, and/or other contracted financial metrics.

The components of lease expense are as follows:



	Quarter Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2026		2025		2026		2025
Lease cost
Finance lease cost:
Amortization of right-of-use assets	$	—	$	10	$	—	$	21
Interest on lease liabilities		—		1		—		1
Operating lease cost		7,122		7,081		14,345		14,094
Variable lease cost		717		1		933		1
Total lease cost	$	7,839	$	7,093	$	15,278	$	14,117

Supplemental cash flow information related to leases is as follows:



	Six Months Ended
	June 30,
(Dollars in thousands)	2026		2025
Cash flows relating to lease cost
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for finance leases	$	—	$	22
Operating cash flows for operating leases		10,259		12,133
Right-of-use assets obtained in exchange for new operating lease liabilities		4,752		3,013

Supplemental balance sheet information related to leases is as follows:



	June 30,		December 31,
(Dollars in thousands)	2026		2025
Operating leases
Operating lease right-of-use assets	$	158,851	$	159,659
Operating lease liabilities - current portion		20,837		20,081
Operating lease liabilities - non-current portion		159,842		162,919
Total operating lease liabilities	$	180,679	$	183,000
Finance leases
Property plant and equipment, gross		228		225
Accumulated depreciation		(228)		(225)
Property plant and equipment, net	$	—	$	—

Other information
Weighted-average remaining lease term - operating leases		10		10
Weighted-average discount rate - finance leases		Nil		Nil
Weighted-average discount rate - operating leases		5.04%		5.04%



(Dollars in thousands)	Operating ‎leases		Finance ‎leases
2026	$	29,496	$	—
2027		26,722		—
2028		25,440		—
2029		23,442		—
2030		21,699		—
Thereafter		106,979		—
Total lease payments	$	233,778	$	—
Less imputed interest		(53,099)		—
Total	$	180,679	$	—

We have entered into various leases as a lessor for our owned real estate properties. These leases vary in length between 1 and 10 years, with certain leases containing options to extend at the behest of the applicable tenants. Lease components consist of fixed base rent, and for certain leases, variable lease payments consisting of contracted percentages of revenue, changes in the relevant CPI, and/or other contracted financial metrics. None of our leases grant any right to the tenant to purchase the underlying asset.



	Quarter Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2026		2025		2026		2025
Components of lease income
Lease payments	$	2,806	$	2,563	$	5,564	$	5,274
Variable lease payments		108		142		318		327
Total lease income	$	2,914	$	2,705	$	5,882	$	5,601

The book value of underlying assets under operating leases from owned assets was as follows:



	June 30,		December 31,
(Dollars in thousands)	2026		2025
Building and improvements
Gross balance	$	116,928	$	115,731
Accumulated depreciation		(27,155)		(25,232)
Net Book Value	$	89,773	$	90,499



(Dollars in thousands)	Operating ‎leases
2026	$	5,720
2027		10,226
2028		10,317
2029		9,735
2030		8,842
Thereafter		24,477
Total	$	69,317