Leases

3 Months Ended

Mar. 31, 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 March 31,
Lease revenue (1)	2022		2021
Fixed	$	111,167	$	106,935
Variable	30,222		30,355
	$	141,389	$	137,290

(1)Excludes lease revenue from discontinued operations of which $1.5 million and $5.5 million was fixed and $527,000 and $1.8 million was variable for the three months ended March 31, 2022 and 2021, respectively.

Fixed contractual payments due under our property leases were as follows (in thousands):

	As of March 31, 2022
Year Ending December 31,	Operating leases		Sales-type leases
2022 (1)	$	329,371	$	720
2023	412,129		960
2024	363,829		960
2025	276,356		960
2026	212,571		960
Thereafter	1,032,507		3,556
Total contractual payments	$	2,626,763	8,116
Less: Amount representing interest			(2,051)
Net investment in sales-type leases			$	6,065

(1)Represents the nine months ending December 31, 2022.

Lessee Arrangements

As of March 31, 2022, our balance sheet included $40.8 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	March 31, 2022		December 31, 2021
Right-of-use assets
Operating leases - Property	Property - operating right-of-use assets	$	38,566	$	38,361
Finance leases - Property	Prepaid expenses and other assets, net	2,230		2,238
Total right-of-use assets		$	40,796	$	40,599

Our property lease liabilities reported on our consolidated balance sheets consisted of the following (in thousands):

Leases	Balance Sheet Location	March 31, 2022		December 31, 2021
Lease liabilities
Operating leases - Property	Property - operating lease liabilities	$	29,729	$	29,342

As of March 31, 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 March 31,
Lease cost		2022		2021
Operating lease cost
Property leases - fixed	Property operating expenses	$	1,019	$	973
Property leases - variable	Property operating expenses	16		10
Finance lease cost
Amortization of property right-of-use assets	Property operating expenses	8		9
		$	1,043	$	992

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	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	837	$	782

Payments on property operating leases were due as follows (in thousands):

Year Ending December 31,	March 31, 2022
2022 (1)	$	2,518
2023	3,399
2024	3,451
2025	1,797
2026	1,578
Thereafter	125,934
Total lease payments	138,677
Less: Amount representing interest	(108,948)
Lease liability	$	29,729

(1)Represents the nine 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 March 31,
Lease revenue (1)	2022		2021
Fixed	$	111,167	$	106,935
Variable	30,222		30,355
	$	141,389	$	137,290

(1)Excludes lease revenue from discontinued operations of which $1.5 million and $5.5 million was fixed and $527,000 and $1.8 million was variable for the three months ended March 31, 2022 and 2021, respectively.

Fixed contractual payments due under our property leases were as follows (in thousands):

	As of March 31, 2022
Year Ending December 31,	Operating leases		Sales-type leases
2022 (1)	$	329,371	$	720
2023	412,129		960
2024	363,829		960
2025	276,356		960
2026	212,571		960
Thereafter	1,032,507		3,556
Total contractual payments	$	2,626,763	8,116
Less: Amount representing interest			(2,051)
Net investment in sales-type leases			$	6,065

(1)Represents the nine months ending December 31, 2022.

Lessee Arrangements

As of March 31, 2022, our balance sheet included $40.8 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	March 31, 2022		December 31, 2021
Right-of-use assets
Operating leases - Property	Property - operating right-of-use assets	$	38,566	$	38,361
Finance leases - Property	Prepaid expenses and other assets, net	2,230		2,238
Total right-of-use assets		$	40,796	$	40,599

Our property lease liabilities reported on our consolidated balance sheets consisted of the following (in thousands):

Leases	Balance Sheet Location	March 31, 2022		December 31, 2021
Lease liabilities
Operating leases - Property	Property - operating lease liabilities	$	29,729	$	29,342

As of March 31, 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 March 31,
Lease cost		2022		2021
Operating lease cost
Property leases - fixed	Property operating expenses	$	1,019	$	973
Property leases - variable	Property operating expenses	16		10
Finance lease cost
Amortization of property right-of-use assets	Property operating expenses	8		9
		$	1,043	$	992

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	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	837	$	782

Payments on property operating leases were due as follows (in thousands):

Year Ending December 31,	March 31, 2022
2022 (1)	$	2,518
2023	3,399
2024	3,451
2025	1,797
2026	1,578
Thereafter	125,934
Total lease payments	138,677
Less: Amount representing interest	(108,948)
Lease liability	$	29,729

(1)Represents the nine 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 March 31,
Lease revenue (1)	2022		2021
Fixed	$	111,167	$	106,935
Variable	30,222		30,355
	$	141,389	$	137,290

(1)Excludes lease revenue from discontinued operations of which $1.5 million and $5.5 million was fixed and $527,000 and $1.8 million was variable for the three months ended March 31, 2022 and 2021, respectively.

Fixed contractual payments due under our property leases were as follows (in thousands):

	As of March 31, 2022
Year Ending December 31,	Operating leases		Sales-type leases
2022 (1)	$	329,371	$	720
2023	412,129		960
2024	363,829		960
2025	276,356		960
2026	212,571		960
Thereafter	1,032,507		3,556
Total contractual payments	$	2,626,763	8,116
Less: Amount representing interest			(2,051)
Net investment in sales-type leases			$	6,065

(1)Represents the nine months ending December 31, 2022.

Lessee Arrangements

As of March 31, 2022, our balance sheet included $40.8 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	March 31, 2022		December 31, 2021
Right-of-use assets
Operating leases - Property	Property - operating right-of-use assets	$	38,566	$	38,361
Finance leases - Property	Prepaid expenses and other assets, net	2,230		2,238
Total right-of-use assets		$	40,796	$	40,599

Our property lease liabilities reported on our consolidated balance sheets consisted of the following (in thousands):

Leases	Balance Sheet Location	March 31, 2022		December 31, 2021
Lease liabilities
Operating leases - Property	Property - operating lease liabilities	$	29,729	$	29,342

As of March 31, 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 March 31,
Lease cost		2022		2021
Operating lease cost
Property leases - fixed	Property operating expenses	$	1,019	$	973
Property leases - variable	Property operating expenses	16		10
Finance lease cost
Amortization of property right-of-use assets	Property operating expenses	8		9
		$	1,043	$	992

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	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	837	$	782

Payments on property operating leases were due as follows (in thousands):

Year Ending December 31,	March 31, 2022
2022 (1)	$	2,518
2023	3,399
2024	3,451
2025	1,797
2026	1,578
Thereafter	125,934
Total lease payments	138,677
Less: Amount representing interest	(108,948)
Lease liability	$	29,729

(1)Represents the nine 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 March 31,
Lease revenue (1)	2022		2021
Fixed	$	111,167	$	106,935
Variable	30,222		30,355
	$	141,389	$	137,290

(1)Excludes lease revenue from discontinued operations of which $1.5 million and $5.5 million was fixed and $527,000 and $1.8 million was variable for the three months ended March 31, 2022 and 2021, respectively.

Fixed contractual payments due under our property leases were as follows (in thousands):

	As of March 31, 2022
Year Ending December 31,	Operating leases		Sales-type leases
2022 (1)	$	329,371	$	720
2023	412,129		960
2024	363,829		960
2025	276,356		960
2026	212,571		960
Thereafter	1,032,507		3,556
Total contractual payments	$	2,626,763	8,116
Less: Amount representing interest			(2,051)
Net investment in sales-type leases			$	6,065

(1)Represents the nine months ending December 31, 2022.

Lessee Arrangements

As of March 31, 2022, our balance sheet included $40.8 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	March 31, 2022		December 31, 2021
Right-of-use assets
Operating leases - Property	Property - operating right-of-use assets	$	38,566	$	38,361
Finance leases - Property	Prepaid expenses and other assets, net	2,230		2,238
Total right-of-use assets		$	40,796	$	40,599

Our property lease liabilities reported on our consolidated balance sheets consisted of the following (in thousands):

Leases	Balance Sheet Location	March 31, 2022		December 31, 2021
Lease liabilities
Operating leases - Property	Property - operating lease liabilities	$	29,729	$	29,342

As of March 31, 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 March 31,
Lease cost		2022		2021
Operating lease cost
Property leases - fixed	Property operating expenses	$	1,019	$	973
Property leases - variable	Property operating expenses	16		10
Finance lease cost
Amortization of property right-of-use assets	Property operating expenses	8		9
		$	1,043	$	992

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	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	837	$	782

Payments on property operating leases were due as follows (in thousands):

Year Ending December 31,	March 31, 2022
2022 (1)	$	2,518
2023	3,399
2024	3,451
2025	1,797
2026	1,578
Thereafter	125,934
Total lease payments	138,677
Less: Amount representing interest	(108,948)
Lease liability	$	29,729

(1)Represents the nine months ending December 31, 2022.