Tenant Leases

9 Months Ended

Sep. 30, 2026

Our real estate properties are leased to tenants under operating lease agreements that expire on various dates. Our tenants have the option to extend or terminate certain leases at their discretion and also have termination options that may result in additional fees due to the Company.

We recognize rental revenue on a straight-line basis over the life of the lease, including any rent steps or abatement provisions. Our tenant leases do not have material residual value guarantees or material restrictive covenants.

The following table details the components of operating lease income:


	Three Months Ended September 30,				Nine Months Ended September 30,
in thousands	2026		2025		2026		2025
Fixed lease payments	$	17,370	$	13,321	$	51,074	$	38,809
Variable lease payments	3,464		2,351		10,022		6,279
Rental revenue	$	20,834	$	15,672	$	61,096	$	45,088

Aggregate minimum annual rentals for our consolidated real estate investments through the non-cancelable lease term are as follows:


in thousands	Future Minimum
Year	Rents(1)
2026 (remainder)	$	9,643
2027	38,238
2028	36,659
2029	31,854
2030	27,458
2031	24,108
Thereafter	75,184
Total	$	243,144

(1)Includes leases for our industrial, office and retail properties which typically have long-term leases over multiple years. All other properties issue short-term leases which have no contractual obligations for future years.

Certain leases provide for additional rental amounts based upon the recovery of actual operating expenses in excess of specified base amounts or contractual increases as defined in the lease agreement. These contractual contingent rentals are not included in the table above.