v3.26.3
Leases
 9 Months Ended
Sep. 30, 2026
Leases [Abstract]  
Leases Leases
Lessor Leases

The Company has operating leases in which it is the lessor for its rental property. Certain leases contain variable lease payments based upon changes in the Consumer Price Index (“CPI”). Billings for real estate taxes and other expenses are also considered to be variable lease payments. Certain leases contain options to renew or terminate the lease, and options for the lessee to purchase the rental property, all of which are predominately at the sole discretion of the lessee.

The following table summarizes the components of rental income included in the accompanying Consolidated Statements of Operations for the three and nine months ended September 30, 2026 and 2025.

Three months ended September 30,Nine months ended September 30,
Rental Income (in thousands)2026202520262025
Fixed lease payments$176,407 $159,934   $517,945 $474,336 
Variable lease payments48,280 43,238 139,746 131,190 
Straight-line rental income5,978 6,160 19,524 15,391 
Net increase to rental income related to above and below market lease amortization305 663 1,131 1,878 
Total rental income$230,970 $209,995 $678,346 $622,795 

As of September 30, 2026 and December 31, 2025, the Company had accrued rental income of approximately $157.9 million and $139.9 million, respectively, included in tenant accounts receivable on the accompanying Consolidated Balance Sheets.
As of September 30, 2026 and December 31, 2025, the Company’s total liability associated with lease security deposits was approximately $27.9 million and $26.3 million, respectively, which is included in tenant prepaid rent and security deposits on the accompanying Consolidated Balance Sheets.

Lessee Leases

The Company has operating leases in which it is the lessee for its ground leases and corporate office leases. These leases have remaining lease terms of approximately 2.7 years to 56.0 years. Certain ground leases contain options to extend the leases for 10 years to 20 years, all of which are reasonably certain to be exercised and are included in the computation of the Company’s right-of-use assets and operating lease liabilities.

On July 1, 2026, the lease term for the Company’s lease agreement for its new headquarters in Boston, Massachusetts commenced. Accordingly, on July 1, 2026, the related right-of-use assets and corresponding operating lease liabilities of approximately $15.1 million were recorded.

The following table summarizes supplemental information related to operating lease right-of-use assets and operating lease liabilities recognized in the Company’s Consolidated Balance Sheets as of September 30, 2026 and December 31, 2025.

Operating Lease Term and Discount RateSeptember 30, 2026December 31, 2025
Weighted average remaining lease term (years)29.637.6
Weighted average discount rate7.0 %7.0 %

The following table summarizes the operating lease cost included in the Company’s Consolidated Statements of Operations for the three and nine months ended September 30, 2026 and 2025.

Three months ended September 30,Nine months ended September 30,
Operating Lease Cost (in thousands)2026202520262025
Operating lease cost included in property expense attributable to ground leases$775 $695 $2,317 $2,090 
Operating lease cost included in general and administrative expense attributable to corporate office leases538 432 1,403 1,293 
Total operating lease cost$1,313 $1,127 $3,720 $3,383 

The following table summarizes supplemental cash flow information related to operating leases in the Company’s Consolidated Statements of Cash Flows for the nine months ended September 30, 2026 and 2025.

Nine months ended September 30,
Operating Leases (in thousands)20262025
Cash paid for amounts included in the measurement of lease liabilities (operating cash flows)$2,886 $3,182 
Right-of-use assets obtained in exchange for new lease liabilities$15,083 $175 
The following table summarizes the maturity of operating lease liabilities under the Company’s ground leases and corporate office leases as of September 30, 2026.

Year
Maturity of Operating Lease Liabilities(1) (in thousands)
Remainder of 2026$633 
20273,823 
20284,646 
20294,786 
20304,808 
Thereafter123,222 
Total lease payments141,918 
Less: Imputed interest(90,123)
Present value of operating lease liabilities$51,795 
(1)Operating lease liabilities do not include estimates of CPI rent changes required by certain ground lease agreements. Therefore, actual payments may differ from those presented.
Leases Leases
Lessor Leases

The Company has operating leases in which it is the lessor for its rental property. Certain leases contain variable lease payments based upon changes in the Consumer Price Index (“CPI”). Billings for real estate taxes and other expenses are also considered to be variable lease payments. Certain leases contain options to renew or terminate the lease, and options for the lessee to purchase the rental property, all of which are predominately at the sole discretion of the lessee.

The following table summarizes the components of rental income included in the accompanying Consolidated Statements of Operations for the three and nine months ended September 30, 2026 and 2025.

Three months ended September 30,Nine months ended September 30,
Rental Income (in thousands)2026202520262025
Fixed lease payments$176,407 $159,934   $517,945 $474,336 
Variable lease payments48,280 43,238 139,746 131,190 
Straight-line rental income5,978 6,160 19,524 15,391 
Net increase to rental income related to above and below market lease amortization305 663 1,131 1,878 
Total rental income$230,970 $209,995 $678,346 $622,795 

As of September 30, 2026 and December 31, 2025, the Company had accrued rental income of approximately $157.9 million and $139.9 million, respectively, included in tenant accounts receivable on the accompanying Consolidated Balance Sheets.
As of September 30, 2026 and December 31, 2025, the Company’s total liability associated with lease security deposits was approximately $27.9 million and $26.3 million, respectively, which is included in tenant prepaid rent and security deposits on the accompanying Consolidated Balance Sheets.

Lessee Leases

The Company has operating leases in which it is the lessee for its ground leases and corporate office leases. These leases have remaining lease terms of approximately 2.7 years to 56.0 years. Certain ground leases contain options to extend the leases for 10 years to 20 years, all of which are reasonably certain to be exercised and are included in the computation of the Company’s right-of-use assets and operating lease liabilities.

On July 1, 2026, the lease term for the Company’s lease agreement for its new headquarters in Boston, Massachusetts commenced. Accordingly, on July 1, 2026, the related right-of-use assets and corresponding operating lease liabilities of approximately $15.1 million were recorded.

The following table summarizes supplemental information related to operating lease right-of-use assets and operating lease liabilities recognized in the Company’s Consolidated Balance Sheets as of September 30, 2026 and December 31, 2025.

Operating Lease Term and Discount RateSeptember 30, 2026December 31, 2025
Weighted average remaining lease term (years)29.637.6
Weighted average discount rate7.0 %7.0 %

The following table summarizes the operating lease cost included in the Company’s Consolidated Statements of Operations for the three and nine months ended September 30, 2026 and 2025.

Three months ended September 30,Nine months ended September 30,
Operating Lease Cost (in thousands)2026202520262025
Operating lease cost included in property expense attributable to ground leases$775 $695 $2,317 $2,090 
Operating lease cost included in general and administrative expense attributable to corporate office leases538 432 1,403 1,293 
Total operating lease cost$1,313 $1,127 $3,720 $3,383 

The following table summarizes supplemental cash flow information related to operating leases in the Company’s Consolidated Statements of Cash Flows for the nine months ended September 30, 2026 and 2025.

Nine months ended September 30,
Operating Leases (in thousands)20262025
Cash paid for amounts included in the measurement of lease liabilities (operating cash flows)$2,886 $3,182 
Right-of-use assets obtained in exchange for new lease liabilities$15,083 $175 
The following table summarizes the maturity of operating lease liabilities under the Company’s ground leases and corporate office leases as of September 30, 2026.

Year
Maturity of Operating Lease Liabilities(1) (in thousands)
Remainder of 2026$633 
20273,823 
20284,646 
20294,786 
20304,808 
Thereafter123,222 
Total lease payments141,918 
Less: Imputed interest(90,123)
Present value of operating lease liabilities$51,795 
(1)Operating lease liabilities do not include estimates of CPI rent changes required by certain ground lease agreements. Therefore, actual payments may differ from those presented.