Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.22.2.2
Leases
 9 Months Ended
Sep. 30, 2022
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) 2022 2021 2022 2021
Fixed $ 113,700  $ 108,694  $ 337,558  $ 323,452 
Variable 32,781  29,338  92,589  88,324 
$ 146,481  $ 138,032  $ 430,147  $ 411,776 
(1)Excludes lease revenue from discontinued operations of which: $5.6 million was fixed and $2.1 million was variable for the three months ended September 30, 2021; and $1.5 million and $16.7 million was fixed and $527,000 and $5.6 million was variable for the nine months ended September 30, 2022 and 2021, respectively.

Fixed contractual payments due under our property leases were as follows (in thousands):
As of September 30, 2022
Year Ending December 31, Operating leases Sales-type leases
2022 (1) $ 114,168  $ 240 
2023 433,302  960 
2024 391,451  960 
2025 304,035  960 
2026 237,922  960 
Thereafter 1,106,292  3,556 
Total contractual payments $ 2,587,170  7,636 
Less: Amount representing interest (1,835)
Net investment in sales-type leases $ 5,801 
(1)Represents the three months ending December 31, 2022.

Lessee Arrangements

As of September 30, 2022, our balance sheet included $39.8 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 consisted of the following (in thousands):
Leases Balance Sheet Location September 30, 2022 December 31, 2021
Right-of-use assets
Operating leases - Property Property - operating right-of-use assets $ 37,541  $ 38,361 
Finance leases - Property Prepaid expenses and other assets, net 2,214  2,238 
Total right-of-use assets $ 39,755  $ 40,599 

Our property lease liabilities reported on our consolidated balance sheets consisted of the following (in thousands):
Leases Balance Sheet Location September 30, 2022 December 31, 2021
Lease liabilities
Operating leases - Property Property - operating lease liabilities $ 29,088  $ 29,342 
As of September 30, 2022, our operating leases had a weighted average remaining lease term of 52 years and a weighted average discount rate of 7.19%. The table below presents our total property lease cost (in thousands):
Statement of Operations Location For the Three Months Ended September 30, For the Nine Months Ended September 30,
Lease cost 2022 2021 2022 2021
Operating lease cost
Property leases - fixed Property operating expenses $ 1,031  $ 1,013  $ 3,082  $ 2,999 
Property leases - variable Property operating expenses 16  11  49  31 
Finance lease cost
Amortization of property right-of-use assets Property operating expenses 7  5  23  23 
$ 1,054  $ 1,029  $ 3,154  $ 3,053 

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 2022 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases $ 2,515  $ 2,399 
Financing cash flows for financing leases $ —  $ 14 

Payments on property operating leases were due as follows (in thousands):
Year Ending December 31,
September 30, 2022
2022 (1) $ 839 
2023 3,399 
2024 3,451 
2025 1,797 
2026 1,578 
Thereafter 125,934 
Total lease payments 136,998 
Less: Amount representing interest (107,910)
Lease liability $ 29,088 
(1)Represents the three months ending December 31, 2022.
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) 2022 2021 2022 2021
Fixed $ 113,700  $ 108,694  $ 337,558  $ 323,452 
Variable 32,781  29,338  92,589  88,324 
$ 146,481  $ 138,032  $ 430,147  $ 411,776 
(1)Excludes lease revenue from discontinued operations of which: $5.6 million was fixed and $2.1 million was variable for the three months ended September 30, 2021; and $1.5 million and $16.7 million was fixed and $527,000 and $5.6 million was variable for the nine months ended September 30, 2022 and 2021, respectively.

Fixed contractual payments due under our property leases were as follows (in thousands):
As of September 30, 2022
Year Ending December 31, Operating leases Sales-type leases
2022 (1) $ 114,168  $ 240 
2023 433,302  960 
2024 391,451  960 
2025 304,035  960 
2026 237,922  960 
Thereafter 1,106,292  3,556 
Total contractual payments $ 2,587,170  7,636 
Less: Amount representing interest (1,835)
Net investment in sales-type leases $ 5,801 
(1)Represents the three months ending December 31, 2022.

Lessee Arrangements

As of September 30, 2022, our balance sheet included $39.8 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 consisted of the following (in thousands):
Leases Balance Sheet Location September 30, 2022 December 31, 2021
Right-of-use assets
Operating leases - Property Property - operating right-of-use assets $ 37,541  $ 38,361 
Finance leases - Property Prepaid expenses and other assets, net 2,214  2,238 
Total right-of-use assets $ 39,755  $ 40,599 

Our property lease liabilities reported on our consolidated balance sheets consisted of the following (in thousands):
Leases Balance Sheet Location September 30, 2022 December 31, 2021
Lease liabilities
Operating leases - Property Property - operating lease liabilities $ 29,088  $ 29,342 
As of September 30, 2022, our operating leases had a weighted average remaining lease term of 52 years and a weighted average discount rate of 7.19%. The table below presents our total property lease cost (in thousands):
Statement of Operations Location For the Three Months Ended September 30, For the Nine Months Ended September 30,
Lease cost 2022 2021 2022 2021
Operating lease cost
Property leases - fixed Property operating expenses $ 1,031  $ 1,013  $ 3,082  $ 2,999 
Property leases - variable Property operating expenses 16  11  49  31 
Finance lease cost
Amortization of property right-of-use assets Property operating expenses 7  5  23  23 
$ 1,054  $ 1,029  $ 3,154  $ 3,053 

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 2022 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases $ 2,515  $ 2,399 
Financing cash flows for financing leases $ —  $ 14 

Payments on property operating leases were due as follows (in thousands):
Year Ending December 31,
September 30, 2022
2022 (1) $ 839 
2023 3,399 
2024 3,451 
2025 1,797 
2026 1,578 
Thereafter 125,934 
Total lease payments 136,998 
Less: Amount representing interest (107,910)
Lease liability $ 29,088 
(1)Represents the three months ending December 31, 2022.
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) 2022 2021 2022 2021
Fixed $ 113,700  $ 108,694  $ 337,558  $ 323,452 
Variable 32,781  29,338  92,589  88,324 
$ 146,481  $ 138,032  $ 430,147  $ 411,776 
(1)Excludes lease revenue from discontinued operations of which: $5.6 million was fixed and $2.1 million was variable for the three months ended September 30, 2021; and $1.5 million and $16.7 million was fixed and $527,000 and $5.6 million was variable for the nine months ended September 30, 2022 and 2021, respectively.

Fixed contractual payments due under our property leases were as follows (in thousands):
As of September 30, 2022
Year Ending December 31, Operating leases Sales-type leases
2022 (1) $ 114,168  $ 240 
2023 433,302  960 
2024 391,451  960 
2025 304,035  960 
2026 237,922  960 
Thereafter 1,106,292  3,556 
Total contractual payments $ 2,587,170  7,636 
Less: Amount representing interest (1,835)
Net investment in sales-type leases $ 5,801 
(1)Represents the three months ending December 31, 2022.

Lessee Arrangements

As of September 30, 2022, our balance sheet included $39.8 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 consisted of the following (in thousands):
Leases Balance Sheet Location September 30, 2022 December 31, 2021
Right-of-use assets
Operating leases - Property Property - operating right-of-use assets $ 37,541  $ 38,361 
Finance leases - Property Prepaid expenses and other assets, net 2,214  2,238 
Total right-of-use assets $ 39,755  $ 40,599 

Our property lease liabilities reported on our consolidated balance sheets consisted of the following (in thousands):
Leases Balance Sheet Location September 30, 2022 December 31, 2021
Lease liabilities
Operating leases - Property Property - operating lease liabilities $ 29,088  $ 29,342 
As of September 30, 2022, our operating leases had a weighted average remaining lease term of 52 years and a weighted average discount rate of 7.19%. The table below presents our total property lease cost (in thousands):
Statement of Operations Location For the Three Months Ended September 30, For the Nine Months Ended September 30,
Lease cost 2022 2021 2022 2021
Operating lease cost
Property leases - fixed Property operating expenses $ 1,031  $ 1,013  $ 3,082  $ 2,999 
Property leases - variable Property operating expenses 16  11  49  31 
Finance lease cost
Amortization of property right-of-use assets Property operating expenses 7  5  23  23 
$ 1,054  $ 1,029  $ 3,154  $ 3,053 

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 2022 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases $ 2,515  $ 2,399 
Financing cash flows for financing leases $ —  $ 14 

Payments on property operating leases were due as follows (in thousands):
Year Ending December 31,
September 30, 2022
2022 (1) $ 839 
2023 3,399 
2024 3,451 
2025 1,797 
2026 1,578 
Thereafter 125,934 
Total lease payments 136,998 
Less: Amount representing interest (107,910)
Lease liability $ 29,088 
(1)Represents the three months ending December 31, 2022.
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) 2022 2021 2022 2021
Fixed $ 113,700  $ 108,694  $ 337,558  $ 323,452 
Variable 32,781  29,338  92,589  88,324 
$ 146,481  $ 138,032  $ 430,147  $ 411,776 
(1)Excludes lease revenue from discontinued operations of which: $5.6 million was fixed and $2.1 million was variable for the three months ended September 30, 2021; and $1.5 million and $16.7 million was fixed and $527,000 and $5.6 million was variable for the nine months ended September 30, 2022 and 2021, respectively.

Fixed contractual payments due under our property leases were as follows (in thousands):
As of September 30, 2022
Year Ending December 31, Operating leases Sales-type leases
2022 (1) $ 114,168  $ 240 
2023 433,302  960 
2024 391,451  960 
2025 304,035  960 
2026 237,922  960 
Thereafter 1,106,292  3,556 
Total contractual payments $ 2,587,170  7,636 
Less: Amount representing interest (1,835)
Net investment in sales-type leases $ 5,801 
(1)Represents the three months ending December 31, 2022.

Lessee Arrangements

As of September 30, 2022, our balance sheet included $39.8 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 consisted of the following (in thousands):
Leases Balance Sheet Location September 30, 2022 December 31, 2021
Right-of-use assets
Operating leases - Property Property - operating right-of-use assets $ 37,541  $ 38,361 
Finance leases - Property Prepaid expenses and other assets, net 2,214  2,238 
Total right-of-use assets $ 39,755  $ 40,599 

Our property lease liabilities reported on our consolidated balance sheets consisted of the following (in thousands):
Leases Balance Sheet Location September 30, 2022 December 31, 2021
Lease liabilities
Operating leases - Property Property - operating lease liabilities $ 29,088  $ 29,342 
As of September 30, 2022, our operating leases had a weighted average remaining lease term of 52 years and a weighted average discount rate of 7.19%. The table below presents our total property lease cost (in thousands):
Statement of Operations Location For the Three Months Ended September 30, For the Nine Months Ended September 30,
Lease cost 2022 2021 2022 2021
Operating lease cost
Property leases - fixed Property operating expenses $ 1,031  $ 1,013  $ 3,082  $ 2,999 
Property leases - variable Property operating expenses 16  11  49  31 
Finance lease cost
Amortization of property right-of-use assets Property operating expenses 7  5  23  23 
$ 1,054  $ 1,029  $ 3,154  $ 3,053 

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 2022 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases $ 2,515  $ 2,399 
Financing cash flows for financing leases $ —  $ 14 

Payments on property operating leases were due as follows (in thousands):
Year Ending December 31,
September 30, 2022
2022 (1) $ 839 
2023 3,399 
2024 3,451 
2025 1,797 
2026 1,578 
Thereafter 125,934 
Total lease payments 136,998 
Less: Amount representing interest (107,910)
Lease liability $ 29,088 
(1)Represents the three months ending December 31, 2022.