Leases |
9 Months Ended |
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Sep. 30, 2024 | |
| Leases [Abstract] | |
| Leases | Leases Sale-Leaseback Transactions with Unrelated Third Parties
During the nine months ended September 30, 2024, we entered into and consummated sale-leaseback transactions with three unrelated third parties. Under these transactions, we sold five properties for gross proceeds of $173.2 million, which was reduced by transaction costs of $1.0 million, for net cash proceeds of $172.2 million. The estimated fair value of the properties sold was $182.2 million. Accordingly, the aggregate cash sales price associated with these arrangements was increased by a $9.0 million aggregate off-market adjustment to $181.2 million. Of the aggregate off-market adjustment, $13.3 million was associated with a property sale in which the sales price was less than the fair value of the property sold, which was recognized as an increase in the aggregate sales price associated with this property and an increase in the related operating lease right-of-use asset, and $4.3 million was associated with property sales in which the sales price was greater than the fair value of the properties sold, which was recognized as a reduction to the aggregate sales price associated with these properties and as financing obligations separate from the related operating lease liabilities. Proceeds from the financing obligations are reported within financing activities on our condensed consolidated statement of cash flows. During the nine months ended September 30, 2024, we recognized a net gain of $19.8 million on sale-leaseback transactions with unrelated third parties, which is included in Other operating expense in our condensed consolidated statement of operations.
Right-of-use assets and lease liabilities recognized in connection with sale-leaseback transactions with unrelated third parties were $123.0 million and $108.5 million, respectively.
Sale-Leaseback Transaction with Related Parties
During the three months ended September 30, 2024, we entered into and consummated a sale-leaseback transaction with an entity in which our chief executive officer and a member of our board of directors own a minority interest. Under this transaction, we sold one property for gross proceeds of $40.0 million, which was reduced by transaction costs of $0.2 million, for net cash proceeds of $39.8 million. The estimated fair value of the property sold was $40.3 million. During the three months ended September 30, 2024, we recognized a loss of $17.2 million on this sale-leaseback transaction, which is included in Other operating expense in our condensed consolidated statement of operations.
The right-of-use asset and lease liability recognized in connection with this sale-leaseback transaction was $25.1 million and $24.9 million, respectively.
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