v3.26.1
Segments
3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segments Segments
Operating segments are defined as components of an enterprise that engage in business activities from which they may earn revenues and incur expenses and about which discrete financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”). The CODM decides how resources are allocated and assesses performance on a recurring basis, at least quarterly. Our CODM is our Chief Executive Officer (“CEO”), who evaluates the operating performance and financial results of our consolidated portfolio based on Net (Loss) Income through monthly operations meetings.

We conduct our business on a consolidated basis in one operating segment and therefore have one reportable segment. Asset information by segment is not reported because the Company does not use this measure to assess performance.

Our reportable segment derives its revenues primarily from rental revenue and related property income through the leasing of commercial real estate space to tenants. We recognize revenue from base rent (fixed lease payments), additional rent (variable lease payments, which consist of amounts due from tenants for common area maintenance, real estate taxes, percentage rent, and other recoverable costs), parking, and other lease-related revenue.

The following table presents Net (Loss) Income:

Three Months Ended March 31,
20262025
(in thousands)
Revenues:
Rental income$265,330 $266,244 
Other property income4,723 4,600 
Total revenues270,053 270,844 
Expenses:
Property expenses59,283 58,714 
Real estate taxes28,782 28,365 
Ground leases3,187 3,020 
General and administrative expenses20,699 16,901 
Leasing costs3,010 2,873 
Depreciation and amortization94,344 87,119 
Total expenses209,305 196,992 
Other Income (Expenses):
Interest income954 1,134 
Interest expense(38,511)(31,148)
Other income (expense)389 (157)
Gains on sales of depreciable operating properties23,525 — 
Impairment of real estate assets(61,778)— 
Total other expenses (75,421)(30,171)
Net (loss) income$(14,673)$43,681