Leases (Tables)

9 Months Ended

Sep. 30, 2025

Schedule of Rental Revenue from Operating Leases

The following table summarizes the Company's rental revenue from operating leases for the three and nine months ended September 30, 2025 and 2024 (amounts in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Rental income	$	45,586	$	42,564	$	134,347	$	129,171
Variable lease income	3,835		3,554		11,874		11,140
Total rental revenue	$	49,421	$	46,118	$	146,221	$	140,311

Schedule of Future Minimum Rent to Lessor from Operating Leases

Future rent to be received from the Company's investments in real estate assets under the terms of non-cancellable operating leases in effect as of September 30, 2025, for the period ending December 31, 2025, and for each of the next four years ending December 31, and thereafter, are as follows (amounts in thousands):


	September 30, 2025(1)
Period ending December 31, 2025	$	44,185
2026	175,161
2027	172,367
2028	167,798
2029	162,888
Thereafter	1,248,888
Total	$	1,971,287

(1)The table includes payments from a tenant who is on the cash basis of accounting for revenue recognition purposes that has continued to make rental payments as of September 30, 2025.

Schedule of Future Minimum Rent from Lessee for Operating Leases

The future rent payments under non-cancellable leases in effect as of September 30, 2025, for the period ending December 31, 2025, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):


	Operating		Finance
Period ending December 31, 2025	$	690	$	—
2026	2,811		9
2027	2,852		9
2028	2,868		9
2029	2,603		9
Thereafter	103,513		67
Total undiscounted rental payments	115,337		103
Less imputed interest	(74,203)		(27)
Total lease liabilities	$	41,134	$	76

The weighted average IBR and weighted average remaining lease term as of September 30, 2025 and December 31, 2024 for the Company's operating leases are as follows:


	September 30, 2025		December 31, 2024
Weighted average IBR	5.5	%	5.5	%
Weighted average remaining lease term	34.6 years		35.2 years

The IBR and remaining lease term as of September 30, 2025 and December 31, 2024 for the Company's finance lease is as follows:


	September 30, 2025		December 31, 2024
IBR	5.8	%	—	%
Remaining lease term	10.8 years		—

Schedule of Finance Lease, Liability, to be Paid, Maturity


	Operating		Finance
Period ending December 31, 2025	$	690	$	—
2026	2,811		9
2027	2,852		9
2028	2,868		9
2029	2,603		9
Thereafter	103,513		67
Total undiscounted rental payments	115,337		103
Less imputed interest	(74,203)		(27)
Total lease liabilities	$	41,134	$	76

The weighted average IBR and weighted average remaining lease term as of September 30, 2025 and December 31, 2024 for the Company's operating leases are as follows:


	September 30, 2025		December 31, 2024
Weighted average IBR	5.5	%	5.5	%
Weighted average remaining lease term	34.6 years		35.2 years

The IBR and remaining lease term as of September 30, 2025 and December 31, 2024 for the Company's finance lease is as follows:


	September 30, 2025		December 31, 2024
IBR	5.8	%	—	%
Remaining lease term	10.8 years		—

Schedule of Lease Cost

The following table provides details of the Company's total lease costs for the three and nine months ended September 30, 2025 and 2024 (amounts in thousands):


		Three Months Ended September 30,				Nine Months Ended September 30,
	Location in Condensed Consolidated Statements of Comprehensive Income	2025		2024		2025		2024
Operating lease costs:
Ground lease costs(1)	Rental expenses	$	689	$	690	$	2,067	$	2,053
Corporate operating lease costs	General and administrative expenses	167		185		533		561
Finance lease costs:

Interest on lease liability	Interest expense	1		—		2		—
Supplemental disclosure of cash flows information:
Operating cash outflows for operating leases(2)		$	218	$	205	$	627	$	624
Right-of-use assets obtained in exchange for new operating lease liabilities		$	—	$	405	$	—	$	433
Right-of-use assets obtained in exchange for new finance lease liabilities		$	—	$	—	$	74	$	—

(1)The Company receives reimbursements from tenants for certain operating ground leases, which are recorded as rental revenue in the accompanying condensed consolidated statements of comprehensive income.

(2)Amounts are net of reimbursements the Company receives from tenants for certain operating ground leases.

Sila Realty Trust, Inc. 10-Q