Leases (Tables)

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Schedule of Components of Investment in Direct Financing Leases, Net

The components of investment in direct financing leases, net as of September 30, 2023 and December 31, 2022 are as follows (in thousands):

	September 30, 2023			December 31, 2022
Lease payments receivable	$	75,123		$	85,336
Unguaranteed residual value		13,928			13,928
Unearned Income		(26,724	)		(32,184	)
Allowance for credit losses		(895	)		(895	)
Total	$	61,432		$	66,185

Future Contractual Annual Rentals Receivable

As of September 30, 2023, future contractual annual rentals receivable from our tenants, which have terms in excess of one year are as follows (in thousands):

	Operating  Leases		Direct Financing Leases
2023	$	38,828	$	13,213
2024		155,021		13,290
2025		155,776		11,089
2026		147,718		10,131
2027		140,788		10,057
Thereafter		957,453		17,343
Total	$	1,595,584	$	75,123

Schedule of Lease-related Assets and Liabilities

The following presents the lease-related assets and liabilities (in thousands):

	September 30, 2023
Assets
Right-of-use assets - operating	$	15,135
Right-of-use assets - finance		200
Total lease assets	$	15,335
Liabilities
Lease liability - operating	$	16,665
Lease liability - finance		649
Total lease liabilities	$	17,314

Summary of Weighted-average Remaining Lease Terms and Discount Rates

The following presents the weighted average lease terms and discount rates of our leases:

Weighted-average remaining lease term (years)
Operating leases	7.8
Finance leases	4.7
Weighted-average discount rate
Operating leases (a)		4.70	%
Finance leases		15.10	%

(a)Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019.

Schedule of Information Related to Lease Costs for Finance and Operating Leases

The following presents our total lease costs (in thousands):

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2023		2022		2023		2022
Operating lease cost	$	800	$	905	$	2,383	$	2,756
Finance lease cost
Amortization of leased assets		79		125		243		355
Interest on lease liabilities		33		85		176		273
Short-term lease cost		—		—		—		—
Total lease cost	$	912	$	1,115	$	2,802	$	3,384

Schedule of Supplemental Cash Flow Information Related to Leases

The following presents supplemental cash flow information related to our leases (in thousands):

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2023		2022		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	847	$	949	$	2,619	$	2,839
Operating cash flows for finance leases		33		85		176		273
Financing cash flows for finance leases		79		125		243		355

Schedule of Reconciles the Undiscounted Cash Flows for Direct Financing Lease Liabilities and Operating Lease Liabilities

As of September 30, 2023, scheduled lease liabilities mature as follows (in thousands):

	Operating  Leases			Direct Financing Leases
2023	$	806		$	340
2024		3,195			228
2025		2,810			146
2026		2,661			74
2027		2,241			-
Thereafter		8,452			-
Total lease payments		20,165			788
Less: amount representing interest		(3,500	)		(139	)
Present value of lease payments	$	16,665		$	649

Schedule of Significant Tenants by Revenue

As of September 30, 2023 and 2022, we had three significant tenants by revenue:

	September 30, 2023					September 30, 2022
	Number of Properties		% of Total Revenues			Number of Properties		% of Total Revenues
ARKO Corp. (NASDAQ: ARKO)		150		15.0	%		128		14.0	%
Global Partners LP (NYSE: GLP)		150		15.0	%		150		16.0	%
APRO, LLC (d/b/a United Oil)		77		10.0	%		78		11.0	%