Leases

9 Months Ended

Sep. 30, 2021

Leases

Leases

8.     Leases

The Company’s rental revenue reflects the leasing of industrial/logistics and, to a much lesser extent, office/flex space and certain land parcels. INDUS does not have any variable payment leases with its tenants. All of INDUS’s leases with its tenants are classified as operating leases with the exception of a sixty-five year ground lease of a small land parcel which is a sale-type lease. As such, a gain of approximately $1,000 on that lease is included in gain on sales of real estate assets in the Company’s consolidated statements of operations for the 2021 third quarter and 2021 nine month period.

The following is a schedule of minimum future cash rentals on the Company’s operating leases as of September 30, 2021. The schedule does not reflect future rental revenues from the renewal or replacement of existing leases or for leases on facilities not yet in service and excludes real estate taxes and property operating expense reimbursements:

Balance of 2021	$	7,743
2022		31,837
2023		28,737
2024		25,622
2025		21,712
Thereafter		38,286
	$	153,937

In 2016, INDUS, as lessee, entered into a ten-year sublease (the “New York Office Lease”) for approximately 1,920 square feet in New York City for its executive offices. The sublease is with Bloomingdale Properties, Inc., an entity that is controlled by certain members of the Cullman and Ernst Group, which is considered a related party to the Company. The New York Office Lease was approved by the Audit Committee of INDUS’s Board of Directors and the lease rates under the sublease were at market rate at the time the sublease was signed.

Expenses related to operating leases where INDUS is the lessee were $104 in each of the 2021 and 2020 nine month periods. The weighted average remaining lease term for these leases as of September 30, 2021, was 5.1 years.

Maturities of lease liabilities as of September 30, 2021 are as follows:

Balance of 2021	$	35
2022		143
2023		140
2024		141
2025		140
2026		117
Total undiscounted payments		716
Less: imputed interest		(60)
Present value of minimum lease payments	$	656