Quarterly report [Sections 13 or 15(d)]

Leases

v3.26.3
Leases
 9 Months Ended
Sep. 30, 2026
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 primarily comprised of: fixed-lease revenue from operating leases, 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.

As discussed in Note 4, in connection with our acquisition of land subject to a ground lease on April 23, 2026, we recorded an investment in a sales-type lease of $43.2 million. Our consolidated balance sheets included net investments in sales-type leases totaling $48.2 million as of September 30, 2026 and $3.8 million as of December 31, 2025, which approximated the estimated fair value of these investments.

The table below presents our composition of lease revenue recognized (in thousands):
For the Three Months Ended September 30, For the Nine Months Ended September 30,
Lease Revenue 2026 2025 2026 2025
Fixed-lease revenue from operating leases $ 144,905  $ 135,883  $ 431,101  $ 403,750 
Variable-lease revenue 47,689  42,315  142,515  125,196 
Sales-type lease interest income 888  74  1,643  232 
$ 193,482  $ 178,272  $ 575,259  $ 529,178 
Lessee Arrangements

As of September 30, 2026, our consolidated balance sheet included $52.4 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 September 30,
2026		 December 31,
2025
Right-of-use assets
Operating leases - Property Property - operating lease right-of-use assets $ 45,882  $ 50,383 
Finance leases - Property Prepaid expenses and other assets, net 6,542  5,373 
Total right-of-use assets $ 52,424  $ 55,756 
Lease liabilities
Operating leases - Property Property - operating lease liabilities $ 41,178  $ 45,012 
Finance leases - Property Other liabilities 1,090  363 
Total lease liabilities $ 42,268  $ 45,375 
As of September 30, 2026, our operating leases had a weighted average remaining lease term of 44 years and a weighted average discount rate of 7.4%, while our finance leases had a weighted average remaining lease term of five years and a weighted average discount rate of 8.0%. 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 2026 2025 2026 2025
Operating lease cost
Property leases - fixed Property operating expenses $ 2,275  $ 2,276  $ 6,827  $ 6,813 
Property leases - variable Property operating expenses 27  27  81  81 
Finance lease cost
Amortization of property right-of-use assets Property operating expenses 100  19  157  56 
Interest on lease liabilities Interest expense 24  8  40  26 
$ 2,426  $ 2,330  $ 7,105  $ 6,976 

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 2026 2025
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases $ 6,160  $ 5,928 
Operating cash flows for finance leases $ 40  $ 26 
Financing cash flows for finance leases $ 248  $ 21 

Payments on property leases were due as follows (in thousands):
September 30, 2026
Year Ending December 31, Operating Leases Finance Leases
2026 (1)
 $ 2,060  $ 118 
2027 8,418  272 
2028 2,838  275 
2029 2,094  277 
2030 2,129  210 
Thereafter 151,870  153 
Total lease payments 169,409  1,305 
Less: Amount representing interest (128,231) (215)
Lease liability $ 41,178  $ 1,090 
(1)Represents the three months ending December 31, 2026.
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 primarily comprised of: fixed-lease revenue from operating leases, 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.

As discussed in Note 4, in connection with our acquisition of land subject to a ground lease on April 23, 2026, we recorded an investment in a sales-type lease of $43.2 million. Our consolidated balance sheets included net investments in sales-type leases totaling $48.2 million as of September 30, 2026 and $3.8 million as of December 31, 2025, which approximated the estimated fair value of these investments.

The table below presents our composition of lease revenue recognized (in thousands):
For the Three Months Ended September 30, For the Nine Months Ended September 30,
Lease Revenue 2026 2025 2026 2025
Fixed-lease revenue from operating leases $ 144,905  $ 135,883  $ 431,101  $ 403,750 
Variable-lease revenue 47,689  42,315  142,515  125,196 
Sales-type lease interest income 888  74  1,643  232 
$ 193,482  $ 178,272  $ 575,259  $ 529,178 
Lessee Arrangements

As of September 30, 2026, our consolidated balance sheet included $52.4 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 September 30,
2026		 December 31,
2025
Right-of-use assets
Operating leases - Property Property - operating lease right-of-use assets $ 45,882  $ 50,383 
Finance leases - Property Prepaid expenses and other assets, net 6,542  5,373 
Total right-of-use assets $ 52,424  $ 55,756 
Lease liabilities
Operating leases - Property Property - operating lease liabilities $ 41,178  $ 45,012 
Finance leases - Property Other liabilities 1,090  363 
Total lease liabilities $ 42,268  $ 45,375 
As of September 30, 2026, our operating leases had a weighted average remaining lease term of 44 years and a weighted average discount rate of 7.4%, while our finance leases had a weighted average remaining lease term of five years and a weighted average discount rate of 8.0%. 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 2026 2025 2026 2025
Operating lease cost
Property leases - fixed Property operating expenses $ 2,275  $ 2,276  $ 6,827  $ 6,813 
Property leases - variable Property operating expenses 27  27  81  81 
Finance lease cost
Amortization of property right-of-use assets Property operating expenses 100  19  157  56 
Interest on lease liabilities Interest expense 24  8  40  26 
$ 2,426  $ 2,330  $ 7,105  $ 6,976 

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 2026 2025
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases $ 6,160  $ 5,928 
Operating cash flows for finance leases $ 40  $ 26 
Financing cash flows for finance leases $ 248  $ 21 

Payments on property leases were due as follows (in thousands):
September 30, 2026
Year Ending December 31, Operating Leases Finance Leases
2026 (1)
 $ 2,060  $ 118 
2027 8,418  272 
2028 2,838  275 
2029 2,094  277 
2030 2,129  210 
Thereafter 151,870  153 
Total lease payments 169,409  1,305 
Less: Amount representing interest (128,231) (215)
Lease liability $ 41,178  $ 1,090 
(1)Represents the three months ending December 31, 2026.
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 primarily comprised of: fixed-lease revenue from operating leases, 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.

As discussed in Note 4, in connection with our acquisition of land subject to a ground lease on April 23, 2026, we recorded an investment in a sales-type lease of $43.2 million. Our consolidated balance sheets included net investments in sales-type leases totaling $48.2 million as of September 30, 2026 and $3.8 million as of December 31, 2025, which approximated the estimated fair value of these investments.

The table below presents our composition of lease revenue recognized (in thousands):
For the Three Months Ended September 30, For the Nine Months Ended September 30,
Lease Revenue 2026 2025 2026 2025
Fixed-lease revenue from operating leases $ 144,905  $ 135,883  $ 431,101  $ 403,750 
Variable-lease revenue 47,689  42,315  142,515  125,196 
Sales-type lease interest income 888  74  1,643  232 
$ 193,482  $ 178,272  $ 575,259  $ 529,178 
Lessee Arrangements

As of September 30, 2026, our consolidated balance sheet included $52.4 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 September 30,
2026		 December 31,
2025
Right-of-use assets
Operating leases - Property Property - operating lease right-of-use assets $ 45,882  $ 50,383 
Finance leases - Property Prepaid expenses and other assets, net 6,542  5,373 
Total right-of-use assets $ 52,424  $ 55,756 
Lease liabilities
Operating leases - Property Property - operating lease liabilities $ 41,178  $ 45,012 
Finance leases - Property Other liabilities 1,090  363 
Total lease liabilities $ 42,268  $ 45,375 
As of September 30, 2026, our operating leases had a weighted average remaining lease term of 44 years and a weighted average discount rate of 7.4%, while our finance leases had a weighted average remaining lease term of five years and a weighted average discount rate of 8.0%. 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 2026 2025 2026 2025
Operating lease cost
Property leases - fixed Property operating expenses $ 2,275  $ 2,276  $ 6,827  $ 6,813 
Property leases - variable Property operating expenses 27  27  81  81 
Finance lease cost
Amortization of property right-of-use assets Property operating expenses 100  19  157  56 
Interest on lease liabilities Interest expense 24  8  40  26 
$ 2,426  $ 2,330  $ 7,105  $ 6,976 

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 2026 2025
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases $ 6,160  $ 5,928 
Operating cash flows for finance leases $ 40  $ 26 
Financing cash flows for finance leases $ 248  $ 21 

Payments on property leases were due as follows (in thousands):
September 30, 2026
Year Ending December 31, Operating Leases Finance Leases
2026 (1)
 $ 2,060  $ 118 
2027 8,418  272 
2028 2,838  275 
2029 2,094  277 
2030 2,129  210 
Thereafter 151,870  153 
Total lease payments 169,409  1,305 
Less: Amount representing interest (128,231) (215)
Lease liability $ 41,178  $ 1,090 
(1)Represents the three months ending December 31, 2026.
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 primarily comprised of: fixed-lease revenue from operating leases, 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.

As discussed in Note 4, in connection with our acquisition of land subject to a ground lease on April 23, 2026, we recorded an investment in a sales-type lease of $43.2 million. Our consolidated balance sheets included net investments in sales-type leases totaling $48.2 million as of September 30, 2026 and $3.8 million as of December 31, 2025, which approximated the estimated fair value of these investments.

The table below presents our composition of lease revenue recognized (in thousands):
For the Three Months Ended September 30, For the Nine Months Ended September 30,
Lease Revenue 2026 2025 2026 2025
Fixed-lease revenue from operating leases $ 144,905  $ 135,883  $ 431,101  $ 403,750 
Variable-lease revenue 47,689  42,315  142,515  125,196 
Sales-type lease interest income 888  74  1,643  232 
$ 193,482  $ 178,272  $ 575,259  $ 529,178 
Lessee Arrangements

As of September 30, 2026, our consolidated balance sheet included $52.4 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 September 30,
2026		 December 31,
2025
Right-of-use assets
Operating leases - Property Property - operating lease right-of-use assets $ 45,882  $ 50,383 
Finance leases - Property Prepaid expenses and other assets, net 6,542  5,373 
Total right-of-use assets $ 52,424  $ 55,756 
Lease liabilities
Operating leases - Property Property - operating lease liabilities $ 41,178  $ 45,012 
Finance leases - Property Other liabilities 1,090  363 
Total lease liabilities $ 42,268  $ 45,375 
As of September 30, 2026, our operating leases had a weighted average remaining lease term of 44 years and a weighted average discount rate of 7.4%, while our finance leases had a weighted average remaining lease term of five years and a weighted average discount rate of 8.0%. 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 2026 2025 2026 2025
Operating lease cost
Property leases - fixed Property operating expenses $ 2,275  $ 2,276  $ 6,827  $ 6,813 
Property leases - variable Property operating expenses 27  27  81  81 
Finance lease cost
Amortization of property right-of-use assets Property operating expenses 100  19  157  56 
Interest on lease liabilities Interest expense 24  8  40  26 
$ 2,426  $ 2,330  $ 7,105  $ 6,976 

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 2026 2025
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases $ 6,160  $ 5,928 
Operating cash flows for finance leases $ 40  $ 26 
Financing cash flows for finance leases $ 248  $ 21 

Payments on property leases were due as follows (in thousands):
September 30, 2026
Year Ending December 31, Operating Leases Finance Leases
2026 (1)
 $ 2,060  $ 118 
2027 8,418  272 
2028 2,838  275 
2029 2,094  277 
2030 2,129  210 
Thereafter 151,870  153 
Total lease payments 169,409  1,305 
Less: Amount representing interest (128,231) (215)
Lease liability $ 41,178  $ 1,090 
(1)Represents the three months ending December 31, 2026.