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Leases
 9 Months Ended
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):
YearAmount
Three months ending December 31, 2022$42,292 
2023172,586 
2024173,961 
2025170,002 
2026163,163 
Thereafter1,096,932 
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):
YearOperatingFinance
Three months ending December 31, 2022$622 $34 
20232,539 136 
20242,606 141 
20252,625 143 
20262,572 143 
Thereafter103,696 6,441 
Total undiscounted rental payments114,660 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 Income2022202120222021
Operating lease costs:
Ground lease costsRental expenses$575 $422 $1,442 $1,266 
Ground lease costs (1)
Income from discontinued operations— 25 — 414 
Corporate operating lease costsGeneral and administrative expenses182 297 559 825 
Finance lease costs:
Amortization of right-of-use assetDepreciation and amortization$5 $5 $15 $14 
Interest on lease liabilityInterest and other expense, net35 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):
YearAmount
Three months ending December 31, 2022$42,292 
2023172,586 
2024173,961 
2025170,002 
2026163,163 
Thereafter1,096,932 
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):
YearOperatingFinance
Three months ending December 31, 2022$622 $34 
20232,539 136 
20242,606 141 
20252,625 143 
20262,572 143 
Thereafter103,696 6,441 
Total undiscounted rental payments114,660 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 Income2022202120222021
Operating lease costs:
Ground lease costsRental expenses$575 $422 $1,442 $1,266 
Ground lease costs (1)
Income from discontinued operations— 25 — 414 
Corporate operating lease costsGeneral and administrative expenses182 297 559 825 
Finance lease costs:
Amortization of right-of-use assetDepreciation and amortization$5 $5 $15 $14 
Interest on lease liabilityInterest and other expense, net35 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):
YearAmount
Three months ending December 31, 2022$42,292 
2023172,586 
2024173,961 
2025170,002 
2026163,163 
Thereafter1,096,932 
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):
YearOperatingFinance
Three months ending December 31, 2022$622 $34 
20232,539 136 
20242,606 141 
20252,625 143 
20262,572 143 
Thereafter103,696 6,441 
Total undiscounted rental payments114,660 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 Income2022202120222021
Operating lease costs:
Ground lease costsRental expenses$575 $422 $1,442 $1,266 
Ground lease costs (1)
Income from discontinued operations— 25 — 414 
Corporate operating lease costsGeneral and administrative expenses182 297 559 825 
Finance lease costs:
Amortization of right-of-use assetDepreciation and amortization$5 $5 $15 $14 
Interest on lease liabilityInterest and other expense, net35 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.