Leases

3 Months Ended

Mar. 31, 2025

Leases [Abstract]

Leases

Leases

Lessor Accounting

We lease communications towers, ground space, colocation space and dark fiber to tenants under operating leases. Our leases have initial lease terms ranging from less than one year to 35 years, most of which include options to extend or renew the leases for less than one year to 20 years (based on the satisfaction of certain conditions as defined in the lease agreements), and some of which may include options to terminate the leases within one to six months. Certain lease agreements contain provisions for future rent increases. Payments due under the lease contracts include fixed payments plus, for some of our leases, variable payments.

The components of lease income for the three months ended March 31, 2025 and 2024 respectively, are as follows:

	Three Months Ended March 31,
(Thousands)	2025		2024
Lease income - operating leases	$	237,023	$	228,155

Lease payments to be received under non-cancellable operating leases where we are the lessor for the remainder of the lease terms as of March 31, 2025 are as follows:

(Thousands)	March 31, 2025⁽¹⁾
2025	$	629,994
2026	858,884
2027	860,585
2028	860,567
2029	860,008
Thereafter	795,011
Total lease receivables	$	4,865,049
(1) Total future minimum lease payments to be received include $4.0 billion relating to the Windstream Leases.

The underlying assets under operating leases where we are the lessor are summarized as follows:

(Thousands)	March 31, 2025		December 31, 2024
Land	$	26,737	$	26,711
Building and improvements	351,541		350,829
Poles	347,551		341,548
Fiber	4,323,867		4,222,895
Equipment	437		437
Copper	3,975,650		3,972,806
Conduit	90,193		90,193
Tower assets	58		58
Finance lease assets	1,889		1,889
Other assets	10,432		10,432
	9,128,355		9,017,798
Less: accumulated depreciation	(5,898,366)		(5,852,579)
Underlying assets under operating leases, net	$	3,229,989	$	3,165,219

Depreciation expense for the underlying assets under operating leases where we are the lessor for the three months ended March 31, 2025 and 2024, respectively, is summarized as follows:

	Three Months Ended March 31,
(Thousands)	2025		2024
Depreciation expense for underlying assets under operating leases	$	47,860	$	46,005

Lessee Accounting

We have commitments under operating leases for communications towers, ground space, colocation space, dark fiber and buildings. We also have finance leases for dark fiber, equipment, and automobiles. Our leases have initial lease terms ranging from less than one year to 30 years, most of which include options to extend or renew the leases for less than one year to 20 years, and some of which may include options to terminate the leases within one to six months. Certain lease agreements contain provisions for future rent increases. Payments due under the lease contracts include fixed payments plus, for some of our leases, variable payments.

As of March 31, 2025, we have short-term lease commitments amounting to approximately $3.4 million.

Future lease payments under non-cancellable leases as of March 31, 2025 are as follows:

(Thousands)	Operating Leases		Finance Leases
2025	$	13,160	$	3,174
2026	15,171		4,106
2027	12,299		3,399
2028	10,577		2,572
2029	8,779		1,877
Thereafter	100,003		7,298
Total undiscounted lease payments	$	159,989	$	22,426
Less: imputed interest	(79,590)		(5,980)
Total lease liabilities	$	80,399	$	16,446

Leases

Leases

Lessor Accounting

We lease communications towers, ground space, colocation space and dark fiber to tenants under operating leases. Our leases have initial lease terms ranging from less than one year to 35 years, most of which include options to extend or renew the leases for less than one year to 20 years (based on the satisfaction of certain conditions as defined in the lease agreements), and some of which may include options to terminate the leases within one to six months. Certain lease agreements contain provisions for future rent increases. Payments due under the lease contracts include fixed payments plus, for some of our leases, variable payments.

The components of lease income for the three months ended March 31, 2025 and 2024 respectively, are as follows:

	Three Months Ended March 31,
(Thousands)	2025		2024
Lease income - operating leases	$	237,023	$	228,155

Lease payments to be received under non-cancellable operating leases where we are the lessor for the remainder of the lease terms as of March 31, 2025 are as follows:

(Thousands)	March 31, 2025⁽¹⁾
2025	$	629,994
2026	858,884
2027	860,585
2028	860,567
2029	860,008
Thereafter	795,011
Total lease receivables	$	4,865,049
(1) Total future minimum lease payments to be received include $4.0 billion relating to the Windstream Leases.

The underlying assets under operating leases where we are the lessor are summarized as follows:

(Thousands)	March 31, 2025		December 31, 2024
Land	$	26,737	$	26,711
Building and improvements	351,541		350,829
Poles	347,551		341,548
Fiber	4,323,867		4,222,895
Equipment	437		437
Copper	3,975,650		3,972,806
Conduit	90,193		90,193
Tower assets	58		58
Finance lease assets	1,889		1,889
Other assets	10,432		10,432
	9,128,355		9,017,798
Less: accumulated depreciation	(5,898,366)		(5,852,579)
Underlying assets under operating leases, net	$	3,229,989	$	3,165,219

Depreciation expense for the underlying assets under operating leases where we are the lessor for the three months ended March 31, 2025 and 2024, respectively, is summarized as follows:

	Three Months Ended March 31,
(Thousands)	2025		2024
Depreciation expense for underlying assets under operating leases	$	47,860	$	46,005

Lessee Accounting

We have commitments under operating leases for communications towers, ground space, colocation space, dark fiber and buildings. We also have finance leases for dark fiber, equipment, and automobiles. Our leases have initial lease terms ranging from less than one year to 30 years, most of which include options to extend or renew the leases for less than one year to 20 years, and some of which may include options to terminate the leases within one to six months. Certain lease agreements contain provisions for future rent increases. Payments due under the lease contracts include fixed payments plus, for some of our leases, variable payments.

As of March 31, 2025, we have short-term lease commitments amounting to approximately $3.4 million.

Future lease payments under non-cancellable leases as of March 31, 2025 are as follows:

(Thousands)	Operating Leases		Finance Leases
2025	$	13,160	$	3,174
2026	15,171		4,106
2027	12,299		3,399
2028	10,577		2,572
2029	8,779		1,877
Thereafter	100,003		7,298
Total undiscounted lease payments	$	159,989	$	22,426
Less: imputed interest	(79,590)		(5,980)
Total lease liabilities	$	80,399	$	16,446

Leases

Leases

Lessor Accounting

We lease communications towers, ground space, colocation space and dark fiber to tenants under operating leases. Our leases have initial lease terms ranging from less than one year to 35 years, most of which include options to extend or renew the leases for less than one year to 20 years (based on the satisfaction of certain conditions as defined in the lease agreements), and some of which may include options to terminate the leases within one to six months. Certain lease agreements contain provisions for future rent increases. Payments due under the lease contracts include fixed payments plus, for some of our leases, variable payments.

The components of lease income for the three months ended March 31, 2025 and 2024 respectively, are as follows:

	Three Months Ended March 31,
(Thousands)	2025		2024
Lease income - operating leases	$	237,023	$	228,155

Lease payments to be received under non-cancellable operating leases where we are the lessor for the remainder of the lease terms as of March 31, 2025 are as follows:

(Thousands)	March 31, 2025⁽¹⁾
2025	$	629,994
2026	858,884
2027	860,585
2028	860,567
2029	860,008
Thereafter	795,011
Total lease receivables	$	4,865,049
(1) Total future minimum lease payments to be received include $4.0 billion relating to the Windstream Leases.

The underlying assets under operating leases where we are the lessor are summarized as follows:

(Thousands)	March 31, 2025		December 31, 2024
Land	$	26,737	$	26,711
Building and improvements	351,541		350,829
Poles	347,551		341,548
Fiber	4,323,867		4,222,895
Equipment	437		437
Copper	3,975,650		3,972,806
Conduit	90,193		90,193
Tower assets	58		58
Finance lease assets	1,889		1,889
Other assets	10,432		10,432
	9,128,355		9,017,798
Less: accumulated depreciation	(5,898,366)		(5,852,579)
Underlying assets under operating leases, net	$	3,229,989	$	3,165,219

Depreciation expense for the underlying assets under operating leases where we are the lessor for the three months ended March 31, 2025 and 2024, respectively, is summarized as follows:

	Three Months Ended March 31,
(Thousands)	2025		2024
Depreciation expense for underlying assets under operating leases	$	47,860	$	46,005

Lessee Accounting

We have commitments under operating leases for communications towers, ground space, colocation space, dark fiber and buildings. We also have finance leases for dark fiber, equipment, and automobiles. Our leases have initial lease terms ranging from less than one year to 30 years, most of which include options to extend or renew the leases for less than one year to 20 years, and some of which may include options to terminate the leases within one to six months. Certain lease agreements contain provisions for future rent increases. Payments due under the lease contracts include fixed payments plus, for some of our leases, variable payments.

As of March 31, 2025, we have short-term lease commitments amounting to approximately $3.4 million.

Future lease payments under non-cancellable leases as of March 31, 2025 are as follows:

(Thousands)	Operating Leases		Finance Leases
2025	$	13,160	$	3,174
2026	15,171		4,106
2027	12,299		3,399
2028	10,577		2,572
2029	8,779		1,877
Thereafter	100,003		7,298
Total undiscounted lease payments	$	159,989	$	22,426
Less: imputed interest	(79,590)		(5,980)
Total lease liabilities	$	80,399	$	16,446