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Leases

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

Leases

Lessor Arrangements

We lease real estate properties, comprised primarily of office properties and data center shells, to third parties. These leases encompass all, or a portion, of properties, with various expiration dates. Our lease revenue is comprised of: fixed lease revenue, including contractual rent billings under leases recognized on a straight-line basis over lease terms and amortization of lease incentives and above- and below- market lease intangibles; and variable lease revenue, including tenant expense recoveries, lease termination revenue and other revenue from tenants that is not fixed under leases. The table below sets forth our composition of lease revenue recognized between fixed and variable lease revenue (in thousands):

						For the Three Months Ended September 30,												For the Nine Months Ended September 30,
Lease revenue (1)						2023						2022						2023						2022
Fixed						$	120,408					$	113,700					$	354,908					$	337,558
Variable						34,860						32,781						104,602						92,589
						$	155,268					$	146,481					$	459,510					$	430,147

(1)Excludes lease revenue from discontinued operations of which $1.5 million was fixed and $527,000 was variable for the nine months ended September 30, 2022.

Lessee Arrangements

As of September 30, 2023, our balance sheet included $43.1 million in right-of-use assets associated primarily with land leased from third parties underlying certain properties that we are operating with various expiration dates. Our property right-of-use assets and property lease liabilities on our consolidated balance sheets consisted of the following (in thousands):

Leases						Balance Sheet Location						September 30, 2023						December 31, 2022
Right-of-use assets
Operating leases - Property						Property - operating right-of-use assets						$	40,487					$	37,020
Finance leases - Property						Prepaid expenses and other assets, net						2,584						2,207
Total right-of-use assets												$	43,071					$	39,227
Lease liabilities
Operating leases - Property						Property - operating lease liabilities						$	32,940					$	28,759
Finance leases - Property						Other liabilities						420						—
Total lease liabilities												$	33,360					$	28,759

As of September 30, 2023, our operating leases had a weighted average remaining lease term of 48 years and a weighted average discount rate of 7.31%, while our finance leases had a weighted average remaining lease term of nine years and a weighted average discount rate of 9.14%. The table below presents our total property lease costs (in thousands):

						Statement of Operations Location						For the Three Months Ended September 30,												For the Nine Months Ended September 30,
Lease cost												2023						2022						2023						2022
Operating lease cost
Property leases - fixed						Property operating expenses						$	1,808					$	1,031					$	5,146					$	3,082
Property leases - variable						Property operating expenses						17						16						50						49
Finance lease cost
Amortization of property right-of-use assets						Property operating expenses						18						7						57						23
Interest on lease liabilities						Interest expense						10						—						33						—
												$	1,853					$	1,054					$	5,286					$	3,154

The table below presents the effect of property lease payments on our consolidated statements of cash flows (in thousands):

									For the Nine Months Ended September 30,
Supplemental cash flow information									2023						2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases									$	4,432					$	2,515
Operating cash flows for financing leases									$	33					$	—
Financing cash flows for financing leases									$	14					$	—

Payments on property leases were due as follows (in thousands):

						September 30, 2023
Year Ending December 31,						Operating Leases						Finance Leases
2023 (1)						$	1,624					$	15
2024						6,633						61
2025						2,250						63
2026						1,662						65
2027						1,677						66
Thereafter						130,495						366
Total lease payments						144,341						636
Less: Amount representing interest						(111,401)						(216)
Lease liability						$	32,940					$	420

(1)Represents the three months ending December 31, 2023.

Leases

Leases

Lessor Arrangements

We lease real estate properties, comprised primarily of office properties and data center shells, to third parties. These leases encompass all, or a portion, of properties, with various expiration dates. Our lease revenue is comprised of: fixed lease revenue, including contractual rent billings under leases recognized on a straight-line basis over lease terms and amortization of lease incentives and above- and below- market lease intangibles; and variable lease revenue, including tenant expense recoveries, lease termination revenue and other revenue from tenants that is not fixed under leases. The table below sets forth our composition of lease revenue recognized between fixed and variable lease revenue (in thousands):

						For the Three Months Ended September 30,												For the Nine Months Ended September 30,
Lease revenue (1)						2023						2022						2023						2022
Fixed						$	120,408					$	113,700					$	354,908					$	337,558
Variable						34,860						32,781						104,602						92,589
						$	155,268					$	146,481					$	459,510					$	430,147

(1)Excludes lease revenue from discontinued operations of which $1.5 million was fixed and $527,000 was variable for the nine months ended September 30, 2022.

Lessee Arrangements

As of September 30, 2023, our balance sheet included $43.1 million in right-of-use assets associated primarily with land leased from third parties underlying certain properties that we are operating with various expiration dates. Our property right-of-use assets and property lease liabilities on our consolidated balance sheets consisted of the following (in thousands):

Leases						Balance Sheet Location						September 30, 2023						December 31, 2022
Right-of-use assets
Operating leases - Property						Property - operating right-of-use assets						$	40,487					$	37,020
Finance leases - Property						Prepaid expenses and other assets, net						2,584						2,207
Total right-of-use assets												$	43,071					$	39,227
Lease liabilities
Operating leases - Property						Property - operating lease liabilities						$	32,940					$	28,759
Finance leases - Property						Other liabilities						420						—
Total lease liabilities												$	33,360					$	28,759

As of September 30, 2023, our operating leases had a weighted average remaining lease term of 48 years and a weighted average discount rate of 7.31%, while our finance leases had a weighted average remaining lease term of nine years and a weighted average discount rate of 9.14%. The table below presents our total property lease costs (in thousands):

						Statement of Operations Location						For the Three Months Ended September 30,												For the Nine Months Ended September 30,
Lease cost												2023						2022						2023						2022
Operating lease cost
Property leases - fixed						Property operating expenses						$	1,808					$	1,031					$	5,146					$	3,082
Property leases - variable						Property operating expenses						17						16						50						49
Finance lease cost
Amortization of property right-of-use assets						Property operating expenses						18						7						57						23
Interest on lease liabilities						Interest expense						10						—						33						—
												$	1,853					$	1,054					$	5,286					$	3,154

The table below presents the effect of property lease payments on our consolidated statements of cash flows (in thousands):

									For the Nine Months Ended September 30,
Supplemental cash flow information									2023						2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases									$	4,432					$	2,515
Operating cash flows for financing leases									$	33					$	—
Financing cash flows for financing leases									$	14					$	—

Payments on property leases were due as follows (in thousands):

						September 30, 2023
Year Ending December 31,						Operating Leases						Finance Leases
2023 (1)						$	1,624					$	15
2024						6,633						61
2025						2,250						63
2026						1,662						65
2027						1,677						66
Thereafter						130,495						366
Total lease payments						144,341						636
Less: Amount representing interest						(111,401)						(216)
Lease liability						$	32,940					$	420

(1)Represents the three months ending December 31, 2023.

Leases

Leases

Lessor Arrangements

We lease real estate properties, comprised primarily of office properties and data center shells, to third parties. These leases encompass all, or a portion, of properties, with various expiration dates. Our lease revenue is comprised of: fixed lease revenue, including contractual rent billings under leases recognized on a straight-line basis over lease terms and amortization of lease incentives and above- and below- market lease intangibles; and variable lease revenue, including tenant expense recoveries, lease termination revenue and other revenue from tenants that is not fixed under leases. The table below sets forth our composition of lease revenue recognized between fixed and variable lease revenue (in thousands):

						For the Three Months Ended September 30,												For the Nine Months Ended September 30,
Lease revenue (1)						2023						2022						2023						2022
Fixed						$	120,408					$	113,700					$	354,908					$	337,558
Variable						34,860						32,781						104,602						92,589
						$	155,268					$	146,481					$	459,510					$	430,147

(1)Excludes lease revenue from discontinued operations of which $1.5 million was fixed and $527,000 was variable for the nine months ended September 30, 2022.

Lessee Arrangements

As of September 30, 2023, our balance sheet included $43.1 million in right-of-use assets associated primarily with land leased from third parties underlying certain properties that we are operating with various expiration dates. Our property right-of-use assets and property lease liabilities on our consolidated balance sheets consisted of the following (in thousands):

Leases						Balance Sheet Location						September 30, 2023						December 31, 2022
Right-of-use assets
Operating leases - Property						Property - operating right-of-use assets						$	40,487					$	37,020
Finance leases - Property						Prepaid expenses and other assets, net						2,584						2,207
Total right-of-use assets												$	43,071					$	39,227
Lease liabilities
Operating leases - Property						Property - operating lease liabilities						$	32,940					$	28,759
Finance leases - Property						Other liabilities						420						—
Total lease liabilities												$	33,360					$	28,759

As of September 30, 2023, our operating leases had a weighted average remaining lease term of 48 years and a weighted average discount rate of 7.31%, while our finance leases had a weighted average remaining lease term of nine years and a weighted average discount rate of 9.14%. The table below presents our total property lease costs (in thousands):

						Statement of Operations Location						For the Three Months Ended September 30,												For the Nine Months Ended September 30,
Lease cost												2023						2022						2023						2022
Operating lease cost
Property leases - fixed						Property operating expenses						$	1,808					$	1,031					$	5,146					$	3,082
Property leases - variable						Property operating expenses						17						16						50						49
Finance lease cost
Amortization of property right-of-use assets						Property operating expenses						18						7						57						23
Interest on lease liabilities						Interest expense						10						—						33						—
												$	1,853					$	1,054					$	5,286					$	3,154

The table below presents the effect of property lease payments on our consolidated statements of cash flows (in thousands):

									For the Nine Months Ended September 30,
Supplemental cash flow information									2023						2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases									$	4,432					$	2,515
Operating cash flows for financing leases									$	33					$	—
Financing cash flows for financing leases									$	14					$	—

Payments on property leases were due as follows (in thousands):

						September 30, 2023
Year Ending December 31,						Operating Leases						Finance Leases
2023 (1)						$	1,624					$	15
2024						6,633						61
2025						2,250						63
2026						1,662						65
2027						1,677						66
Thereafter						130,495						366
Total lease payments						144,341						636
Less: Amount representing interest						(111,401)						(216)
Lease liability						$	32,940					$	420

(1)Represents the three months ending December 31, 2023.

Leases

Leases

Lessor Arrangements

We lease real estate properties, comprised primarily of office properties and data center shells, to third parties. These leases encompass all, or a portion, of properties, with various expiration dates. Our lease revenue is comprised of: fixed lease revenue, including contractual rent billings under leases recognized on a straight-line basis over lease terms and amortization of lease incentives and above- and below- market lease intangibles; and variable lease revenue, including tenant expense recoveries, lease termination revenue and other revenue from tenants that is not fixed under leases. The table below sets forth our composition of lease revenue recognized between fixed and variable lease revenue (in thousands):

						For the Three Months Ended September 30,												For the Nine Months Ended September 30,
Lease revenue (1)						2023						2022						2023						2022
Fixed						$	120,408					$	113,700					$	354,908					$	337,558
Variable						34,860						32,781						104,602						92,589
						$	155,268					$	146,481					$	459,510					$	430,147

(1)Excludes lease revenue from discontinued operations of which $1.5 million was fixed and $527,000 was variable for the nine months ended September 30, 2022.

Lessee Arrangements

As of September 30, 2023, our balance sheet included $43.1 million in right-of-use assets associated primarily with land leased from third parties underlying certain properties that we are operating with various expiration dates. Our property right-of-use assets and property lease liabilities on our consolidated balance sheets consisted of the following (in thousands):

Leases						Balance Sheet Location						September 30, 2023						December 31, 2022
Right-of-use assets
Operating leases - Property						Property - operating right-of-use assets						$	40,487					$	37,020
Finance leases - Property						Prepaid expenses and other assets, net						2,584						2,207
Total right-of-use assets												$	43,071					$	39,227
Lease liabilities
Operating leases - Property						Property - operating lease liabilities						$	32,940					$	28,759
Finance leases - Property						Other liabilities						420						—
Total lease liabilities												$	33,360					$	28,759

As of September 30, 2023, our operating leases had a weighted average remaining lease term of 48 years and a weighted average discount rate of 7.31%, while our finance leases had a weighted average remaining lease term of nine years and a weighted average discount rate of 9.14%. The table below presents our total property lease costs (in thousands):

						Statement of Operations Location						For the Three Months Ended September 30,												For the Nine Months Ended September 30,
Lease cost												2023						2022						2023						2022
Operating lease cost
Property leases - fixed						Property operating expenses						$	1,808					$	1,031					$	5,146					$	3,082
Property leases - variable						Property operating expenses						17						16						50						49
Finance lease cost
Amortization of property right-of-use assets						Property operating expenses						18						7						57						23
Interest on lease liabilities						Interest expense						10						—						33						—
												$	1,853					$	1,054					$	5,286					$	3,154

The table below presents the effect of property lease payments on our consolidated statements of cash flows (in thousands):

									For the Nine Months Ended September 30,
Supplemental cash flow information									2023						2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases									$	4,432					$	2,515
Operating cash flows for financing leases									$	33					$	—
Financing cash flows for financing leases									$	14					$	—

Payments on property leases were due as follows (in thousands):

						September 30, 2023
Year Ending December 31,						Operating Leases						Finance Leases
2023 (1)						$	1,624					$	15
2024						6,633						61
2025						2,250						63
2026						1,662						65
2027						1,677						66
Thereafter						130,495						366
Total lease payments						144,341						636
Less: Amount representing interest						(111,401)						(216)
Lease liability						$	32,940					$	420

(1)Represents the three months ending December 31, 2023.

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The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
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The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.

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-Topic 842
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The entire disclosure of lessor's sales-type leases.

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