LEASES (Tables)

3 Months Ended

Mar. 31, 2026

Lessee - Future minimum lease payments and total operating lease liabilities

Future minimum lease payments and total operating lease liabilities from our ground leases as of March 31, 2026 are as follows (dollars in thousands):


		Ground Leases
2026		$	9,521
2027			12,695
2028			12,695
2029			12,695
2030			12,695
Thereafter			389,340
Total future minimum lease payments (undiscounted)			449,641
Difference between future undiscounted cash flows and discounted cash flows			(267,646)
Total operating lease liabilities (discounted)		$	181,995

Lessee - Components of operating lease expenses

The components of operating lease expenses were as follows (dollars in thousands):


		Three Months Ended March 31,
		2026			2025
Lease expense:
Contractual lease expense		$	3,458		$	3,363
Variable lease expense (a)			60			50
Total operating lease expense (b)(c)		$	3,518		$	3,413

(a)

Variable lease expense includes adjustments such as changes in the consumer price index and payments based on a percentage of a community’s revenue.

(b)

Lease expense is reported within the line item Other operating expenses on the Consolidated Statements of Operations.

(c)

For the three months ended March 31, 2026, Operating lease right-of-use assets and Operating lease liabilities amortized by $1.0 million and $1.0 million, respectively. For the three months ended March 31, 2025, Operating lease right-of-use assets and Operating lease liabilities amortized by $0.9 million and $0.9 million, respectively. Due to the net impact of the amortization, the Company recorded less than $0.1 million and less than $0.1 million of total operating lease expense during the three months ended March 31, 2026 and 2025, respectively.

Lessor - Future minimum lease payments

Future minimum lease payments from our retail and commercial leases as of March 31, 2026 are as follows (dollars in thousands):


		Retail and Commercial Leases
2026		$	20,814
2027			25,994
2028			23,264
2029			18,772
2030			13,985
Thereafter			85,039
Total future minimum lease payments (a)		$	187,868

(a)We have excluded our apartment home leases from this table as our apartment home leases generally have initial terms of 12 months or less.