Quarterly report [Sections 13 or 15(d)]

Leases

v3.25.2
Leases
6 Months Ended
Jun. 30, 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 June 30, For the Six Months Ended June 30,
Lease revenue 2025 2024 2025 2024
Fixed $ 136,334  $ 127,363  $ 268,025  $ 253,561 
Variable 39,264  38,256  82,881  77,491 
$ 175,598  $ 165,619  $ 350,906  $ 331,052 
Lessee Arrangements

As of June 30, 2025, our balance sheet included $55.7 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 June 30,
2025
December 31,
2024
Right-of-use assets
Operating leases - Property Property - operating lease right-of-use assets $ 53,271  $ 55,760 
Finance leases - Property Prepaid expenses and other assets, net 2,454  2,491 
Total right-of-use assets $ 55,725  $ 58,251 
Lease liabilities
Operating leases - Property Property - operating lease liabilities $ 47,372  $ 49,240 
Finance leases - Property Other liabilities 377  391 
Total lease liabilities $ 47,749  $ 49,631 

As of June 30, 2025, our operating leases had a weighted average remaining lease term of 39 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 June 30, For the Six Months Ended June 30,
Lease cost 2025 2024 2025 2024
Operating lease cost
Property leases - fixed Property operating expenses $ 2,271  $ 1,899  $ 4,537  $ 3,758 
Property leases - variable Property operating expenses 27  143  54  177 
Finance lease cost
Amortization of property right-of-use assets Property operating expenses 18  18  37  37 
Interest on lease liabilities Interest expense 10  18  19 
$ 2,325  $ 2,070  $ 4,646  $ 3,991 
The table below presents the effect of property lease payments on our consolidated statements of cash flows (in thousands):
For the Six Months Ended June 30,
Supplemental cash flow information 2025 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases $ 3,917  $ 3,476 
Operating cash flows for finance leases $ 18  $ 19 
Financing cash flows for finance leases $ 14  $ 12 

Payments on property leases were due as follows (in thousands):
June 30, 2025
Year Ending December 31, Operating Leases Finance Leases
2025 (1)
$ 4,021  $ 31 
2026 8,217  65 
2027 8,418  67 
2028 2,838  69 
2029 2,094  71 
Thereafter 154,000  226 
Total lease payments 179,588  529 
Less: Amount representing interest (132,216) (152)
Lease liability $ 47,372  $ 377 
(1)Represents the six 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 June 30, For the Six Months Ended June 30,
Lease revenue 2025 2024 2025 2024
Fixed $ 136,334  $ 127,363  $ 268,025  $ 253,561 
Variable 39,264  38,256  82,881  77,491 
$ 175,598  $ 165,619  $ 350,906  $ 331,052 
Lessee Arrangements

As of June 30, 2025, our balance sheet included $55.7 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 June 30,
2025
December 31,
2024
Right-of-use assets
Operating leases - Property Property - operating lease right-of-use assets $ 53,271  $ 55,760 
Finance leases - Property Prepaid expenses and other assets, net 2,454  2,491 
Total right-of-use assets $ 55,725  $ 58,251 
Lease liabilities
Operating leases - Property Property - operating lease liabilities $ 47,372  $ 49,240 
Finance leases - Property Other liabilities 377  391 
Total lease liabilities $ 47,749  $ 49,631 

As of June 30, 2025, our operating leases had a weighted average remaining lease term of 39 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 June 30, For the Six Months Ended June 30,
Lease cost 2025 2024 2025 2024
Operating lease cost
Property leases - fixed Property operating expenses $ 2,271  $ 1,899  $ 4,537  $ 3,758 
Property leases - variable Property operating expenses 27  143  54  177 
Finance lease cost
Amortization of property right-of-use assets Property operating expenses 18  18  37  37 
Interest on lease liabilities Interest expense 10  18  19 
$ 2,325  $ 2,070  $ 4,646  $ 3,991 
The table below presents the effect of property lease payments on our consolidated statements of cash flows (in thousands):
For the Six Months Ended June 30,
Supplemental cash flow information 2025 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases $ 3,917  $ 3,476 
Operating cash flows for finance leases $ 18  $ 19 
Financing cash flows for finance leases $ 14  $ 12 

Payments on property leases were due as follows (in thousands):
June 30, 2025
Year Ending December 31, Operating Leases Finance Leases
2025 (1)
$ 4,021  $ 31 
2026 8,217  65 
2027 8,418  67 
2028 2,838  69 
2029 2,094  71 
Thereafter 154,000  226 
Total lease payments 179,588  529 
Less: Amount representing interest (132,216) (152)
Lease liability $ 47,372  $ 377 
(1)Represents the six 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 June 30, For the Six Months Ended June 30,
Lease revenue 2025 2024 2025 2024
Fixed $ 136,334  $ 127,363  $ 268,025  $ 253,561 
Variable 39,264  38,256  82,881  77,491 
$ 175,598  $ 165,619  $ 350,906  $ 331,052 
Lessee Arrangements

As of June 30, 2025, our balance sheet included $55.7 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 June 30,
2025
December 31,
2024
Right-of-use assets
Operating leases - Property Property - operating lease right-of-use assets $ 53,271  $ 55,760 
Finance leases - Property Prepaid expenses and other assets, net 2,454  2,491 
Total right-of-use assets $ 55,725  $ 58,251 
Lease liabilities
Operating leases - Property Property - operating lease liabilities $ 47,372  $ 49,240 
Finance leases - Property Other liabilities 377  391 
Total lease liabilities $ 47,749  $ 49,631 

As of June 30, 2025, our operating leases had a weighted average remaining lease term of 39 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 June 30, For the Six Months Ended June 30,
Lease cost 2025 2024 2025 2024
Operating lease cost
Property leases - fixed Property operating expenses $ 2,271  $ 1,899  $ 4,537  $ 3,758 
Property leases - variable Property operating expenses 27  143  54  177 
Finance lease cost
Amortization of property right-of-use assets Property operating expenses 18  18  37  37 
Interest on lease liabilities Interest expense 10  18  19 
$ 2,325  $ 2,070  $ 4,646  $ 3,991 
The table below presents the effect of property lease payments on our consolidated statements of cash flows (in thousands):
For the Six Months Ended June 30,
Supplemental cash flow information 2025 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases $ 3,917  $ 3,476 
Operating cash flows for finance leases $ 18  $ 19 
Financing cash flows for finance leases $ 14  $ 12 

Payments on property leases were due as follows (in thousands):
June 30, 2025
Year Ending December 31, Operating Leases Finance Leases
2025 (1)
$ 4,021  $ 31 
2026 8,217  65 
2027 8,418  67 
2028 2,838  69 
2029 2,094  71 
Thereafter 154,000  226 
Total lease payments 179,588  529 
Less: Amount representing interest (132,216) (152)
Lease liability $ 47,372  $ 377 
(1)Represents the six months ending December 31, 2025.