Simon Property Group, Inc. Simon Property Group, L.P. Notes to Consolidated Financial Statements (Dollars in thousands, except share, per share, unit and per unit amounts and where indicated as in millions or billions)
effect on our financial condition, liquidity or results of operations. We record a liability when a loss is considered probable and the amount can be reasonably estimated.
Lease Commitments As of December 31, 2025, we are subject to ground leases that cover all or a portion of 29 of our consolidated properties with termination dates extending through 2105, including periods for which exercising an extension option is reasonably assured. These ground leases generally require us to make fixed annual rental payments, or a fixed annual rental payment plus a percentage rent component based upon the revenues or total reported sales of the property. In addition, we have several regional office locations that are subject to leases with termination dates ranging from 2026 to 2034. These office leases generally require us to make fixed annual rental payments plus pay our share of common area, real estate, and utility expenses. Some of our ground and office leases include escalation clauses. All of our lease arrangements are classified as operating leases. We incurred ground lease expense and office lease expense, which are included in other expense and home office and regional expense, respectively, as follows: For the Year Ended December 31, 2025 2024 2023 Operating Lease Cost Fixedleasecost................................................ $ 37,071 $ 35,518 $ 34,112 Variable lease cost ............................................. 17,089 16,232 16,930 Total operating lease cost ...................................... $ 54,160 $ 51,750 $ 51,042
For the Year Ended December 31,
2025
2024
2023
Other Information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases . . . . . . . . . . . . . . . . . . . $
54,111 $ 51,690 $ 50,967
30.6 years
32.0 years
32.3 years
Weighted-average remaining lease term - operating leases. . . . . . . . . Weighted-average discount rate - operating leases ...............
5.32%
5.32%
4.93%
Future minimum lease payments due under these leases for years ending December 31, excluding applicable extension options and renewal options unless reasonably certain of exercise and any sublease income, are as follows: 2026........................................................... $ 51,853 2027........................................................... 52,049 2028........................................................... 52,273 2029........................................................... 52,319 2030........................................................... 52,439 Thereafter ...................................................... 1,534,279 $ 1,795,212 Impact of discounting ............................................. (1,038,673) Operating lease liabilities .......................................... $ 756,539
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