Leases
The Company has operating leases for office space leased in various buildings for its own use. The Company's leases have original terms ranging from 5 to 10 years. The Company's lease agreements do not contain any residual value guarantees or material restrictive covenants. Lease costs related to the Company's operating leases are primarily reflected in "cost of revenue" in the consolidated statements of operations, as they are a reimbursable cost under the Company's respective asset management agreements. (See Note 13 for additional information).
The following table summarizes operating lease costs, by type (in thousands):
| | | | | | | | | | | | | | | |
| | | Year Ended December 31, |
| | | | | 2025 | | 2024 |
| Operating lease costs | | | | | | | |
| Fixed lease costs | | | | | $ | 1,186 | | | $ | 1,186 | |
| Variable lease costs | | | | | 394 | | | 392 | |
| Total operating lease costs | | | | | $ | 1,580 | | | $ | 1,578 | |
The following table presents supplemental cash flow information related to the Company's operating leases (in thousands):
| | | | | | | | | | | | | | | |
| | | Year Ended December 31, |
| | | | | 2025 | | 2024 |
| Cash paid for lease liabilities: | | | | | | | |
| Operating cash flows from operating leases | | | | | $ | 1,593 | | | $ | 1,559 | |
As of December 31, 2025, the Company's operating leases had a weighted-average remaining lease term of 4.8 years and a weighted-average discount rate of 4.65%.
The following table summarizes future lease liability payments (in thousands):
| | | | | |
| Year Ending December 31, | Operating Leases |
| 2026 | $ | 1,222 | |
| 2027 | 1,204 | |
| 2028 | 1,233 | |
| 2029 | 1,262 | |
| 2030 | 1,073 | |
| Thereafter | — | |
| Total future lease payments | 5,994 | |
| Imputed interest | (644) | |
| Total lease liabilities | $ | 5,350 | |
As of December 31, 2025, the Company does not have any liabilities related to leases that have not yet commenced.
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.