Related Party Transactions

6 Months Ended

Jun. 30, 2021

As described further in Note 5 ‘Investments in Unconsolidated Entity’, during the three months ended March 31, 2019, we formed an unconsolidated entity with Alinda, an infrastructure investment firm. We contributed a hyperscale data center under development in Manassas, Virginia to the entity. The facility, and the previously executed operating lease to a global cloud-based software company pursuant to a 10-year lease agreement, was contributed in exchange for cash and noncash consideration in the form of equity interest in the entity that was measured at fair value pursuant to ASC Topic 820. We and Alinda each own a 50% interest in the entity.

Under the unconsolidated entity operating agreement, we serve as the entity’s operating member, subject to authority and oversight of a board appointed by us and Alinda, and separately we serve as manager and developer of the facility in exchange for management and development fees. During the three months ended June 30, 2021 and 2020, we received $0.6 million and $0.4 million, respectively, in development fees from the unconsolidated entity, and $0.9 million and $0.9 million for the six months ended June 30, 2021 and 2020, respectively. During the three months ended June 30, 2021 and 2020, we received $0.3 million and $0.2 million, respectively, in management fees from the unconsolidated entity, and $0.5 million and $0.4 million for the six months ended June 30, 2021 and 2020, respectively. During the three months ended June 30, 2021, we also received a distribution from the unconsolidated entity that was contemplated in the operating agreement and is classified as an investing cash flow given the nature of the distribution as a return of capital.

In addition, we periodically execute transactions with entities affiliated with our Chairman and Chief Executive Officer. Such transactions include building operating lease payments and receipts as well as reimbursement for the use of a private aircraft service by our officers and directors.

The transactions which occurred during the three and six months ended June 30, 2021 and 2020 are outlined below (unaudited and in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Tax, utility, insurance and other reimbursement	$	254	$	78	$	423	$	254
Rent expense	260		257		520		514
Total	$	514	$	335	$	943	$	768