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 2025202420252024
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):
LeasesBalance Sheet LocationJune 30,
2025		December 31,
2024
Right-of-use assets
Operating leases - PropertyProperty - operating lease right-of-use assets$53,271 $55,760 
Finance leases - PropertyPrepaid expenses and other assets, net2,454 2,491 
Total right-of-use assets$55,725 $58,251 
Lease liabilities
Operating leases - PropertyProperty - operating lease liabilities$47,372 $49,240 
Finance leases - PropertyOther liabilities377 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 LocationFor the Three Months Ended June 30,For the Six Months Ended June 30,
Lease cost2025202420252024
Operating lease cost
Property leases - fixedProperty operating expenses$2,271 $1,899 $4,537 $3,758 
Property leases - variableProperty operating expenses27 143 54 177 
Finance lease cost
Amortization of property right-of-use assetsProperty operating expenses18 18 37 37 
Interest on lease liabilitiesInterest expense9 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 information20252024
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 LeasesFinance Leases
2025 (1)
$4,021 $31 
20268,217 65 
20278,418 67 
20282,838 69 
20292,094 71 
Thereafter154,000 226 
Total lease payments179,588 529 
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 2025202420252024
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):
LeasesBalance Sheet LocationJune 30,
2025		December 31,
2024
Right-of-use assets
Operating leases - PropertyProperty - operating lease right-of-use assets$53,271 $55,760 
Finance leases - PropertyPrepaid expenses and other assets, net2,454 2,491 
Total right-of-use assets$55,725 $58,251 
Lease liabilities
Operating leases - PropertyProperty - operating lease liabilities$47,372 $49,240 
Finance leases - PropertyOther liabilities377 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 LocationFor the Three Months Ended June 30,For the Six Months Ended June 30,
Lease cost2025202420252024
Operating lease cost
Property leases - fixedProperty operating expenses$2,271 $1,899 $4,537 $3,758 
Property leases - variableProperty operating expenses27 143 54 177 
Finance lease cost
Amortization of property right-of-use assetsProperty operating expenses18 18 37 37 
Interest on lease liabilitiesInterest expense9 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 information20252024
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 LeasesFinance Leases
2025 (1)
$4,021 $31 
20268,217 65 
20278,418 67 
20282,838 69 
20292,094 71 
Thereafter154,000 226 
Total lease payments179,588 529 
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 2025202420252024
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):
LeasesBalance Sheet LocationJune 30,
2025		December 31,
2024
Right-of-use assets
Operating leases - PropertyProperty - operating lease right-of-use assets$53,271 $55,760 
Finance leases - PropertyPrepaid expenses and other assets, net2,454 2,491 
Total right-of-use assets$55,725 $58,251 
Lease liabilities
Operating leases - PropertyProperty - operating lease liabilities$47,372 $49,240 
Finance leases - PropertyOther liabilities377 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 LocationFor the Three Months Ended June 30,For the Six Months Ended June 30,
Lease cost2025202420252024
Operating lease cost
Property leases - fixedProperty operating expenses$2,271 $1,899 $4,537 $3,758 
Property leases - variableProperty operating expenses27 143 54 177 
Finance lease cost
Amortization of property right-of-use assetsProperty operating expenses18 18 37 37 
Interest on lease liabilitiesInterest expense9 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 information20252024
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 LeasesFinance Leases
2025 (1)
$4,021 $31 
20268,217 65 
20278,418 67 
20282,838 69 
20292,094 71 
Thereafter154,000 226 
Total lease payments179,588 529 
Less: Amount representing interest(132,216)(152)
Lease liability$47,372 $377 
(1)Represents the six months ending December 31, 2025.