Quarterly report [Sections 13 or 15(d)]

Leases

v3.25.1
Leases
 3 Months Ended
Mar. 31, 2025
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 March 31,
Lease revenue 2025 2024
Fixed $ 131,691  $ 126,198 
Variable 43,617  39,235 
$ 175,308  $ 165,433 
Lessee Arrangements

As of March 31, 2025, our balance sheet included $56.8 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 and property lease liabilities on our consolidated balance sheets consisted of the following (in thousands):
Leases Balance Sheet Location March 31,
2025		 December 31,
2024
Right-of-use assets
Operating leases - Property Property - operating lease right-of-use assets $ 54,374  $ 55,760 
Finance leases - Property Prepaid expenses and other assets, net 2,473  2,491 
Total right-of-use assets $ 56,847  $ 58,251 
Lease liabilities
Operating leases - Property Property - operating lease liabilities $ 48,216  $ 49,240 
Finance leases - Property Other liabilities 384  391 
Total lease liabilities $ 48,600  $ 49,631 

As of March 31, 2025, our operating leases had a weighted average remaining lease term of 38 years and a weighted average discount rate of 7.3%, while our finance leases had a weighted average remaining lease term of eight years and a weighted average discount rate of 9.1%. The table below presents our total property lease cost (in thousands):
Statement of Operations Location For the Three Months Ended March 31,
Lease cost 2025 2024
Operating lease cost
Property leases - fixed Property operating expenses $ 2,266  $ 1,859 
Property leases - variable Property operating expenses 27  34 
Finance lease cost
Amortization of property right-of-use assets Property operating expenses 19  19 
Interest on lease liabilities Interest expense 9  9 
$ 2,321  $ 1,921 
The table below presents the effect of property lease payments on our consolidated statements of cash flows (in thousands):
For the Three Months Ended March 31,
Supplemental cash flow information 2025 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases $ 1,903  $ 1,724 
Operating cash flows for finance leases $ 9  $ 9 
Financing cash flows for finance leases $ 7  $ 6 

Payments on property leases were due as follows (in thousands):
March 31, 2025
Year Ending December 31, Operating Leases Finance Leases
2025 (1)
 $ 6,011  $ 47 
2026 8,192  65 
2027 8,392  67 
2028 2,812  69 
2029 2,068  71 
Thereafter 152,110  226 
Total lease payments 179,585  545 
Less: Amount representing interest (131,369) (161)
Lease liability $ 48,216  $ 384 
(1)Represents the nine months ending December 31, 2025.
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 March 31,
Lease revenue 2025 2024
Fixed $ 131,691  $ 126,198 
Variable 43,617  39,235 
$ 175,308  $ 165,433 
Lessee Arrangements

As of March 31, 2025, our balance sheet included $56.8 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 and property lease liabilities on our consolidated balance sheets consisted of the following (in thousands):
Leases Balance Sheet Location March 31,
2025		 December 31,
2024
Right-of-use assets
Operating leases - Property Property - operating lease right-of-use assets $ 54,374  $ 55,760 
Finance leases - Property Prepaid expenses and other assets, net 2,473  2,491 
Total right-of-use assets $ 56,847  $ 58,251 
Lease liabilities
Operating leases - Property Property - operating lease liabilities $ 48,216  $ 49,240 
Finance leases - Property Other liabilities 384  391 
Total lease liabilities $ 48,600  $ 49,631 

As of March 31, 2025, our operating leases had a weighted average remaining lease term of 38 years and a weighted average discount rate of 7.3%, while our finance leases had a weighted average remaining lease term of eight years and a weighted average discount rate of 9.1%. The table below presents our total property lease cost (in thousands):
Statement of Operations Location For the Three Months Ended March 31,
Lease cost 2025 2024
Operating lease cost
Property leases - fixed Property operating expenses $ 2,266  $ 1,859 
Property leases - variable Property operating expenses 27  34 
Finance lease cost
Amortization of property right-of-use assets Property operating expenses 19  19 
Interest on lease liabilities Interest expense 9  9 
$ 2,321  $ 1,921 
The table below presents the effect of property lease payments on our consolidated statements of cash flows (in thousands):
For the Three Months Ended March 31,
Supplemental cash flow information 2025 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases $ 1,903  $ 1,724 
Operating cash flows for finance leases $ 9  $ 9 
Financing cash flows for finance leases $ 7  $ 6 

Payments on property leases were due as follows (in thousands):
March 31, 2025
Year Ending December 31, Operating Leases Finance Leases
2025 (1)
 $ 6,011  $ 47 
2026 8,192  65 
2027 8,392  67 
2028 2,812  69 
2029 2,068  71 
Thereafter 152,110  226 
Total lease payments 179,585  545 
Less: Amount representing interest (131,369) (161)
Lease liability $ 48,216  $ 384 
(1)Represents the nine months ending December 31, 2025.
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 March 31,
Lease revenue 2025 2024
Fixed $ 131,691  $ 126,198 
Variable 43,617  39,235 
$ 175,308  $ 165,433 
Lessee Arrangements

As of March 31, 2025, our balance sheet included $56.8 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 and property lease liabilities on our consolidated balance sheets consisted of the following (in thousands):
Leases Balance Sheet Location March 31,
2025		 December 31,
2024
Right-of-use assets
Operating leases - Property Property - operating lease right-of-use assets $ 54,374  $ 55,760 
Finance leases - Property Prepaid expenses and other assets, net 2,473  2,491 
Total right-of-use assets $ 56,847  $ 58,251 
Lease liabilities
Operating leases - Property Property - operating lease liabilities $ 48,216  $ 49,240 
Finance leases - Property Other liabilities 384  391 
Total lease liabilities $ 48,600  $ 49,631 

As of March 31, 2025, our operating leases had a weighted average remaining lease term of 38 years and a weighted average discount rate of 7.3%, while our finance leases had a weighted average remaining lease term of eight years and a weighted average discount rate of 9.1%. The table below presents our total property lease cost (in thousands):
Statement of Operations Location For the Three Months Ended March 31,
Lease cost 2025 2024
Operating lease cost
Property leases - fixed Property operating expenses $ 2,266  $ 1,859 
Property leases - variable Property operating expenses 27  34 
Finance lease cost
Amortization of property right-of-use assets Property operating expenses 19  19 
Interest on lease liabilities Interest expense 9  9 
$ 2,321  $ 1,921 
The table below presents the effect of property lease payments on our consolidated statements of cash flows (in thousands):
For the Three Months Ended March 31,
Supplemental cash flow information 2025 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases $ 1,903  $ 1,724 
Operating cash flows for finance leases $ 9  $ 9 
Financing cash flows for finance leases $ 7  $ 6 

Payments on property leases were due as follows (in thousands):
March 31, 2025
Year Ending December 31, Operating Leases Finance Leases
2025 (1)
 $ 6,011  $ 47 
2026 8,192  65 
2027 8,392  67 
2028 2,812  69 
2029 2,068  71 
Thereafter 152,110  226 
Total lease payments 179,585  545 
Less: Amount representing interest (131,369) (161)
Lease liability $ 48,216  $ 384 
(1)Represents the nine months ending December 31, 2025.