Leases (Tables)
|
9 Months Ended |
Sep. 30, 2026 |
|---|
| Leases [Abstract] |
|
| Schedule of Components of Investment in Direct Financing Leases, Net |
The components of investment in direct financing leases, net as of September 30, 2026 and December 31, 2025 are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
September 30,
2026 |
|
|
December 31,
2025 |
|
Lease payments receivable |
|
$ |
36,870 |
|
|
$ |
44,243 |
|
Unguaranteed residual value |
|
|
7,568 |
|
|
|
7,568 |
|
Unearned Income |
|
|
(9,224 |
) |
|
|
(12,532 |
) |
Allowance for credit losses |
|
|
(426 |
) |
|
|
(426 |
) |
Total |
|
$ |
34,788 |
|
|
$ |
38,853 |
|
|
| Future Contractual Annual Rentals Receivable |
As of September 30, 2026, future contractual annual rentals receivable from our tenants, which have terms in excess of one year are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Operating
Leases |
|
|
Direct
Financing Leases |
|
2026 |
|
$ |
60,881 |
|
|
$ |
2,495 |
|
2027 |
|
|
243,780 |
|
|
|
10,089 |
|
2028 |
|
|
240,877 |
|
|
|
9,799 |
|
2029 |
|
|
239,479 |
|
|
|
8,425 |
|
2030 |
|
|
237,438 |
|
|
|
4,844 |
|
Thereafter |
|
|
2,032,944 |
|
|
|
1,218 |
|
Total |
|
$ |
3,055,399 |
|
|
$ |
36,870 |
|
|
| Schedule of Lease-related Assets and Liabilities |
The following presents the lease-related assets and liabilities (in thousands):
|
|
|
|
|
|
|
September 30,
2026 |
|
Assets |
|
|
|
Right-of-use assets - operating |
|
$ |
10,819 |
|
Right-of-use assets - finance |
|
|
25 |
|
Total lease assets |
|
$ |
10,844 |
|
Liabilities |
|
|
|
Lease liability - operating |
|
|
11,766 |
|
Lease liability - finance |
|
|
72 |
|
Total lease liabilities |
|
$ |
11,838 |
|
|
| Summary of Weighted-average Remaining Lease Terms and Discount Rates |
The following presents the weighted average lease terms and discount rates of our leases:
|
|
|
|
|
Weighted-average remaining lease term (years): |
|
|
|
Operating leases |
|
5.9 |
|
Finance leases |
|
0.50 |
|
Weighted-average discount rate: |
|
|
|
Operating leases (a) |
|
|
4.40 |
% |
Finance leases |
|
|
13.60 |
% |
(a)Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019.
|
| Schedule of Information Related to Lease Costs for Finance and Operating Leases |
The following presents our total lease costs (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended September 30, |
|
|
For the Nine Months
Ended September 30, |
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Operating lease cost |
|
|
657 |
|
|
|
672 |
|
|
$ |
1,852 |
|
|
$ |
2,035 |
|
Finance lease cost |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of leased assets |
|
|
34 |
|
|
|
31 |
|
|
|
101 |
|
|
|
124 |
|
Interest on lease liabilities |
|
|
2 |
|
|
|
5 |
|
|
|
9 |
|
|
|
18 |
|
Short-term lease cost |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total lease cost |
|
$ |
693 |
|
|
$ |
708 |
|
|
$ |
1,962 |
|
|
$ |
2,177 |
|
|
| Schedule of Supplemental Cash Flow Information Related to Leases |
The following presents supplemental cash flow information related to our leases (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended September 30, |
|
|
For the Nine Months
Ended September 30, |
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flows for operating leases |
|
$ |
683 |
|
|
$ |
705 |
|
|
$ |
2,015 |
|
|
$ |
2,124 |
|
Operating cash flows for finance leases |
|
|
2 |
|
|
|
5 |
|
|
|
9 |
|
|
|
18 |
|
Financing cash flows for finance leases |
|
|
34 |
|
|
|
31 |
|
|
|
101 |
|
|
|
124 |
|
|
| Schedule of Reconciles the Undiscounted Cash Flows for Direct Financing Lease Liabilities and Operating Lease Liabilities |
As of September 30, 2026, scheduled lease liabilities mature as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Operating
Leases |
|
|
Direct
Financing Leases |
|
2026 |
|
$ |
694 |
|
|
$ |
36 |
|
2027 |
|
|
2,701 |
|
|
|
37 |
|
2028 |
|
|
2,592 |
|
|
|
- |
|
2029 |
|
|
2,350 |
|
|
|
— |
|
2030 |
|
|
2,129 |
|
|
|
— |
|
Thereafter |
|
|
3,209 |
|
|
|
— |
|
Total lease payments |
|
|
13,675 |
|
|
|
73 |
|
Less: amount representing interest |
|
|
(1,909 |
) |
|
|
(1 |
) |
Present value of lease payments |
|
$ |
11,766 |
|
|
$ |
72 |
|
|
| Schedule of Significant Tenants by Revenue |
As of September 30, 2026 and 2025, we had two significant tenants by revenue:
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|
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|
September 30, 2026 |
|
|
September 30, 2025 |
|
|
|
Number of Properties |
|
|
% of Total Revenues |
|
|
Number of Properties |
|
|
% of Total Revenues |
|
ARKO Corp. (NASDAQ: ARKO) |
|
|
148 |
|
|
|
11 |
% |
|
|
148 |
|
|
|
12 |
% |
Global Partners LP (NYSE: GLP) |
|
|
125 |
|
|
|
9 |
% |
|
|
127 |
|
|
|
10 |
% |
|