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Leases | 9 Months Ended
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Sep. 30, 2022
Leases [Abstract] |
Leases | Leases Lessor Rental Revenue The Company’s real estate properties are leased to tenants under operating leases with varying terms. Typically, the leases have provisions to extend the terms of the lease agreements. The Company retains substantially all of the risks and benefits of ownership of the real estate properties leased to tenants. Future rent to be received from the Company's investments in real estate assets under the terms of non-cancellable operating leases in effect as of September 30, 2022, for the three months ending December 31, 2022, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
Year |  | Amount
Three months ending December 31, 2022 |  | $ | 42,292 |
2023 |  | 172,586 |
2024 |  | 173,961 |
2025 |  | 170,002 |
2026 |  | 163,163 |
Thereafter |  | 1,096,932 |
Total |  | $ | 1,818,936 |
Lessee The Company is subject to various non-cancellable operating ground lease agreements and a finance ground lease agreement on which certain of its properties reside. In addition, the Company has non-cancellable corporate-related operating leases. The Company's operating leases and the finance lease do not provide an implicit interest rate. In order to calculate the present value of the remaining operating and finance lease payments, the Company used incremental borrowing rates, or IBRs, adjusted for a number of factors. The determination of an appropriate IBR involves multiple inputs and judgments. The Company determined its IBRs considering the general economic environment, term of the underlying leases, and various financing and asset specific adjustments to ensure the IBRs are appropriate for the intended use of the underlying operating or finance leases. The Company's right-of-use assets classified as operating leases and finance lease are recorded in right-of-use assets on the condensed consolidated balance sheets. As of September 30, 2022, the Company's IBRs for its operating leases were between 2.5% and 6.4%, with a weighted average IBR of 5.5%. The weighted average remaining lease term for the Company's operating leases was 37.4 years and 36.1 years as of September 30, 2022 and December 31, 2021, respectively. As of September 30, 2022, the Company's IBR for its finance lease was 5.3%. The remaining lease term for the Company's finance lease was 41.7 years and 42.4 years as of September 30, 2022 and December 31, 2021, respectively. The future rent payments, discounted by the Company's IBRs, under non-cancellable leases in effect as of September 30, 2022, for the three months ending December 31, 2022, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
Year |  | Operating |  | Finance
Three months ending December 31, 2022 |  | $ | 622 |  |  | $ | 34 |
2023 |  | 2,539 |  |  | 136 |
2024 |  | 2,606 |  |  | 141 |
2025 |  | 2,625 |  |  | 143 |
2026 |  | 2,572 |  |  | 143 |
Thereafter |  | 103,696 |  |  | 6,441 |
Total undiscounted rental payments |  | 114,660 |  |  | 7,038 |
Less imputed interest |  | (75,671) |  |  | (4,387) |
Total lease liabilities |  | $ | 38,989 |  |  | $ | 2,651 |
The following table provides details of the Company's total lease costs for the three and nine months ended September 30, 2022 and 2021 (amounts in thousands):
|  |  |  | Three Months Ended September 30, |  |  | Nine Months Ended September 30,
|  | Location in Condensed Consolidated Statements of Comprehensive Income |  | 2022 |  | 2021 |  |  | 2022 |  | 2021 |  |
Operating lease costs: |  |  |  |  |  |  |  |  |  |  |  |  |
Ground lease costs |  | Rental expenses |  | $ | 575 |  |  | $ | 422 |  |  |  | $ | 1,442 |  |  | $ | 1,266 |  |  |
Ground lease costs (1) |  | Income from discontinued operations |  | — |  |  | 25 |  |  |  | — |  |  | 414 |  |  |
Corporate operating lease costs |  | General and administrative expenses |  | 182 |  |  | 297 |  |  |  | 559 |  |  | 825 |  |  |
Finance lease costs: |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of right-of-use asset |  | Depreciation and amortization |  | $ | 5 |  |  | $ | 5 |  |  |  | $ | 15 |  |  | $ | 14 |  |  |
Interest on lease liability |  | Interest and other expense, net |  | 35 |  |  | 35 |  |  |  | 105 |  |  | 102 |  |  |
(1)Amount relates to lease costs attributable to operating ground leases related to data center properties disposed of in the Data Center Sale on July 22, 2021.
Leases | Leases Lessor Rental Revenue The Company’s real estate properties are leased to tenants under operating leases with varying terms. Typically, the leases have provisions to extend the terms of the lease agreements. The Company retains substantially all of the risks and benefits of ownership of the real estate properties leased to tenants. Future rent to be received from the Company's investments in real estate assets under the terms of non-cancellable operating leases in effect as of September 30, 2022, for the three months ending December 31, 2022, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
Year |  | Amount
Three months ending December 31, 2022 |  | $ | 42,292 |
2023 |  | 172,586 |
2024 |  | 173,961 |
2025 |  | 170,002 |
2026 |  | 163,163 |
Thereafter |  | 1,096,932 |
Total |  | $ | 1,818,936 |
Lessee The Company is subject to various non-cancellable operating ground lease agreements and a finance ground lease agreement on which certain of its properties reside. In addition, the Company has non-cancellable corporate-related operating leases. The Company's operating leases and the finance lease do not provide an implicit interest rate. In order to calculate the present value of the remaining operating and finance lease payments, the Company used incremental borrowing rates, or IBRs, adjusted for a number of factors. The determination of an appropriate IBR involves multiple inputs and judgments. The Company determined its IBRs considering the general economic environment, term of the underlying leases, and various financing and asset specific adjustments to ensure the IBRs are appropriate for the intended use of the underlying operating or finance leases. The Company's right-of-use assets classified as operating leases and finance lease are recorded in right-of-use assets on the condensed consolidated balance sheets. As of September 30, 2022, the Company's IBRs for its operating leases were between 2.5% and 6.4%, with a weighted average IBR of 5.5%. The weighted average remaining lease term for the Company's operating leases was 37.4 years and 36.1 years as of September 30, 2022 and December 31, 2021, respectively. As of September 30, 2022, the Company's IBR for its finance lease was 5.3%. The remaining lease term for the Company's finance lease was 41.7 years and 42.4 years as of September 30, 2022 and December 31, 2021, respectively. The future rent payments, discounted by the Company's IBRs, under non-cancellable leases in effect as of September 30, 2022, for the three months ending December 31, 2022, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
Year |  | Operating |  | Finance
Three months ending December 31, 2022 |  | $ | 622 |  |  | $ | 34 |
2023 |  | 2,539 |  |  | 136 |
2024 |  | 2,606 |  |  | 141 |
2025 |  | 2,625 |  |  | 143 |
2026 |  | 2,572 |  |  | 143 |
Thereafter |  | 103,696 |  |  | 6,441 |
Total undiscounted rental payments |  | 114,660 |  |  | 7,038 |
Less imputed interest |  | (75,671) |  |  | (4,387) |
Total lease liabilities |  | $ | 38,989 |  |  | $ | 2,651 |
The following table provides details of the Company's total lease costs for the three and nine months ended September 30, 2022 and 2021 (amounts in thousands):
|  |  |  | Three Months Ended September 30, |  |  | Nine Months Ended September 30,
|  | Location in Condensed Consolidated Statements of Comprehensive Income |  | 2022 |  | 2021 |  |  | 2022 |  | 2021 |  |
Operating lease costs: |  |  |  |  |  |  |  |  |  |  |  |  |
Ground lease costs |  | Rental expenses |  | $ | 575 |  |  | $ | 422 |  |  |  | $ | 1,442 |  |  | $ | 1,266 |  |  |
Ground lease costs (1) |  | Income from discontinued operations |  | — |  |  | 25 |  |  |  | — |  |  | 414 |  |  |
Corporate operating lease costs |  | General and administrative expenses |  | 182 |  |  | 297 |  |  |  | 559 |  |  | 825 |  |  |
Finance lease costs: |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of right-of-use asset |  | Depreciation and amortization |  | $ | 5 |  |  | $ | 5 |  |  |  | $ | 15 |  |  | $ | 14 |  |  |
Interest on lease liability |  | Interest and other expense, net |  | 35 |  |  | 35 |  |  |  | 105 |  |  | 102 |  |  |
(1)Amount relates to lease costs attributable to operating ground leases related to data center properties disposed of in the Data Center Sale on July 22, 2021.
Leases | Leases Lessor Rental Revenue The Company’s real estate properties are leased to tenants under operating leases with varying terms. Typically, the leases have provisions to extend the terms of the lease agreements. The Company retains substantially all of the risks and benefits of ownership of the real estate properties leased to tenants. Future rent to be received from the Company's investments in real estate assets under the terms of non-cancellable operating leases in effect as of September 30, 2022, for the three months ending December 31, 2022, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
Year |  | Amount
Three months ending December 31, 2022 |  | $ | 42,292 |
2023 |  | 172,586 |
2024 |  | 173,961 |
2025 |  | 170,002 |
2026 |  | 163,163 |
Thereafter |  | 1,096,932 |
Total |  | $ | 1,818,936 |
Lessee The Company is subject to various non-cancellable operating ground lease agreements and a finance ground lease agreement on which certain of its properties reside. In addition, the Company has non-cancellable corporate-related operating leases. The Company's operating leases and the finance lease do not provide an implicit interest rate. In order to calculate the present value of the remaining operating and finance lease payments, the Company used incremental borrowing rates, or IBRs, adjusted for a number of factors. The determination of an appropriate IBR involves multiple inputs and judgments. The Company determined its IBRs considering the general economic environment, term of the underlying leases, and various financing and asset specific adjustments to ensure the IBRs are appropriate for the intended use of the underlying operating or finance leases. The Company's right-of-use assets classified as operating leases and finance lease are recorded in right-of-use assets on the condensed consolidated balance sheets. As of September 30, 2022, the Company's IBRs for its operating leases were between 2.5% and 6.4%, with a weighted average IBR of 5.5%. The weighted average remaining lease term for the Company's operating leases was 37.4 years and 36.1 years as of September 30, 2022 and December 31, 2021, respectively. As of September 30, 2022, the Company's IBR for its finance lease was 5.3%. The remaining lease term for the Company's finance lease was 41.7 years and 42.4 years as of September 30, 2022 and December 31, 2021, respectively. The future rent payments, discounted by the Company's IBRs, under non-cancellable leases in effect as of September 30, 2022, for the three months ending December 31, 2022, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
Year |  | Operating |  | Finance
Three months ending December 31, 2022 |  | $ | 622 |  |  | $ | 34 |
2023 |  | 2,539 |  |  | 136 |
2024 |  | 2,606 |  |  | 141 |
2025 |  | 2,625 |  |  | 143 |
2026 |  | 2,572 |  |  | 143 |
Thereafter |  | 103,696 |  |  | 6,441 |
Total undiscounted rental payments |  | 114,660 |  |  | 7,038 |
Less imputed interest |  | (75,671) |  |  | (4,387) |
Total lease liabilities |  | $ | 38,989 |  |  | $ | 2,651 |
The following table provides details of the Company's total lease costs for the three and nine months ended September 30, 2022 and 2021 (amounts in thousands):
|  |  |  | Three Months Ended September 30, |  |  | Nine Months Ended September 30,
|  | Location in Condensed Consolidated Statements of Comprehensive Income |  | 2022 |  | 2021 |  |  | 2022 |  | 2021 |  |
Operating lease costs: |  |  |  |  |  |  |  |  |  |  |  |  |
Ground lease costs |  | Rental expenses |  | $ | 575 |  |  | $ | 422 |  |  |  | $ | 1,442 |  |  | $ | 1,266 |  |  |
Ground lease costs (1) |  | Income from discontinued operations |  | — |  |  | 25 |  |  |  | — |  |  | 414 |  |  |
Corporate operating lease costs |  | General and administrative expenses |  | 182 |  |  | 297 |  |  |  | 559 |  |  | 825 |  |  |
Finance lease costs: |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of right-of-use asset |  | Depreciation and amortization |  | $ | 5 |  |  | $ | 5 |  |  |  | $ | 15 |  |  | $ | 14 |  |  |
Interest on lease liability |  | Interest and other expense, net |  | 35 |  |  | 35 |  |  |  | 105 |  |  | 102 |  |  |
(1)Amount relates to lease costs attributable to operating ground leases related to data center properties disposed of in the Data Center Sale on July 22, 2021.

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- Definition 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 -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
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