Leases (Tables)
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9 Months Ended |
Sep. 30, 2026 |
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| Leases [Abstract] |
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| Schedule of Rental Revenue, Disaggregated into Fixed and Variable Lease Income |
The following table presents the components of rental revenue, disaggregated into fixed and variable lease income (in thousands):
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2026 |
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2025 |
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2026 |
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2025 |
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Fixed lease revenue |
$ |
74,208 |
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$ |
80,558 |
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$ |
226,088 |
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$ |
243,631 |
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Variable lease revenue |
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16,187 |
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18,156 |
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54,063 |
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|
56,020 |
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Total rental revenue |
$ |
90,395 |
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$ |
98,714 |
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$ |
280,151 |
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$ |
299,651 |
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| Schedule of Future Minimum Rental Revenues |
The following table summarizes the Company’s scheduled future minimum rental revenues under non-cancelable tenant leases with remaining terms greater than one year, as of September 30, 2026. These amounts assume no new or renegotiated leases or exercise of renewal options not deemed reasonably certain (in thousands):
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Year Ending December 31, |
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Minimum Rental
Revenues |
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2026 (Remainder) |
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$ |
64,837 |
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2027 |
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|
273,035 |
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2028 |
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|
258,373 |
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2029 |
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|
232,617 |
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2030 |
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|
206,492 |
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Thereafter |
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813,053 |
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Total |
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$ |
1,848,407 |
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| Schedule of Future Minimum Rental Payments for Operating and Capital Leases |
The following table summarizes the Company’s scheduled future minimum rental payments under non-cancelable leases as of September 30, 2026 (in thousands):
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Minimum Rental Payments |
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Year Ending December 31, |
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Operating Leases (a) |
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Finance
Leases (a) |
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2026 (Remainder) |
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$ |
1,367 |
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$ |
333 |
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2027 |
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|
5,443 |
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|
1,350 |
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2028 |
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5,390 |
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1,396 |
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2029 |
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4,887 |
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|
1,415 |
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2030 |
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|
4,866 |
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|
1,495 |
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Thereafter |
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10,331 |
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153,825 |
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32,284 |
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159,814 |
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Interest |
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(6,003 |
) |
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(127,140 |
) |
Total |
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$ |
26,281 |
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$ |
32,674 |
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(a)Minimum rental payments include $6.0 million of interest related to operating leases and $127.1 million related to finance leases. These amounts exclude lease renewal options that are not reasonably certain to be exercised.
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| Schedule of Lease Cost |
The following table summarizes additional lease cost information for the Company’s lessee arrangements (dollars in thousands):
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2026 |
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2025 |
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2026 |
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2025 |
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Lease Cost |
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Finance lease cost: |
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Amortization of right-of-use assets |
$ |
374 |
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$ |
374 |
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$ |
1,121 |
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$ |
1,121 |
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Interest on lease liabilities |
|
528 |
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|
512 |
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|
1,575 |
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|
1,541 |
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Subtotal |
|
902 |
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|
886 |
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|
2,696 |
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|
2,662 |
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Operating lease cost |
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1,332 |
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|
1,409 |
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3,967 |
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|
4,124 |
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Variable lease cost |
|
43 |
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|
38 |
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|
128 |
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|
232 |
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Total lease cost |
$ |
2,277 |
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$ |
2,333 |
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$ |
6,791 |
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$ |
7,018 |
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Cash Paid |
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Payments of operating lease obligations - operating activities |
$ |
1,444 |
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$ |
1,365 |
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$ |
4,238 |
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$ |
4,097 |
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Payments of interest on finance lease obligations - operating activities |
|
528 |
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|
516 |
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1,574 |
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1,541 |
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Payments of finance lease obligations - financing activities |
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348 |
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|
179 |
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1,013 |
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|
557 |
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As of September 30, |
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2026 |
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2025 |
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Other Information |
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Weighted-average remaining lease term - finance leases (years) |
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56.0 |
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56.4 |
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Weighted-average remaining lease term - operating leases (years) |
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7.6 |
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8.2 |
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Weighted-average discount rate - finance leases |
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6.5 |
% |
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6.5 |
% |
Weighted-average discount rate - operating leases |
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5.1 |
% |
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|
5.1 |
% |
During the nine months ended September 30, 2026, the Company entered into a new corporate office lease and recorded a right-of-use assets - operating lease and corresponding lease liability - operating lease of $3.8 million.
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